At HPC, tax compliance is not a year end to-do. Instead, we leverage tools like Xero, PayPal, and many others to keep our client reports accurate, timely, and meaningful. Together, these help our clients run their business and aid us in providing pro-active tax advice with seamless filing.
With all the right tools, best practices, and ongoing support, our clients know in advance what their bottom line looks like and how they’re doing on a daily/weekly basis. Our in-house tax team has everything they need to provide answers and advice throughout the year, not after year end when it’s too late. Below is how we do this, as well as a video and link to a case study PayPal put together featuring Xero and our CEO.
Infrastructure and Workflow
Every business has a bank account and transactions. They need a way to get paid and pay their people. They also need to comply with various compliance requirements. In order to effectively run their business and plan for (not just meet) compliance requirements they need the right infrastructure and workflow.
Xero - Cloud based accounting software to allow them to run their business on the go and collaborate with features like mobile invoicing capabilities.
PayPal - International bank account and payment gateway. Allowing businesses to get paid from their customers no matter where they are with a link on their invoices. Also allows you to pay for help.
Training and Support - Xero is intuitive and syncs with PayPal. But at the end of the day, it is accounting and software which both inherently prompt questions. However, because everything is in the cloud you can have an advisor helping you learn best practices, do some or most of the work if not just supporting you. This will ensure you get the true value out of your real time system and advice.
The Power of Advice
Your books and reports may not mean a whole lot to you. But, without them you can’t do any of the following:
- Know whether you’ve been paid in full or not
- Know if you are making money and how to improve your bottom line
- Paying your people is a lot easier when you know you have the money to do so
- Seeking outside investment or financing
- Planning for income and other taxes
- Planning for the expansion of your business
Up to date books and records, real time balances of your bank account, credit card, PayPal, and money owed to you or to your people. Thee are all things you will know in real time, and so will your accounting and tax advisor.
Advice is the key to your growth and success, not bookkeeping or reports. But you must have accurate and timely financial information to get accurate and timely advice.
The advice you receive is what will change your business and allow you to grow without running into compliance roadblocks or surprise tax bills. Those are things that kill your cash flow.
- Plan for taxes and get tax advice throughout the year rather than waiting until it’s filing time
- Is it time to make that S Corp election to minimize self employment tax?
- What are you going to owe in 6 months and what can you do about it now?
- How should this transaction be recorded for best tax treatment purposes?
- Do you need to register in that new state to hire new people or start selling your products there?
- Do you qualify for an R&D tax credit to offset income and/or payroll taxes?
If you wait to ask these questions until year end it may be too late to make a difference. Additionally, you may leave tax deductible expenses or tax credits on the table, fail to be able to pay your new employee on time, or get late notices with penalties and interest compounded daily for federal or state filing that otherwise could have been avoided.
Advice comes in multiple forms, and is not isolated to tax advice either. You can get advice to further streamline your workflow and save time, get paid faster, reduce expenses, etc. You can also leverage virtual CFO’s or controllers to help you do strategic planning, or empower your in-house CFO to do more analytics and less data entry.
Infrastructure for collaboration and workflow automation changes your day to day business. But more importantly, will allow for real-time advice that allows you to confidently grow your business and manage your most important resources - your time, money, and people.
Being Prepared for Taxes
Below is a tax tip video filmed and presented by PayPal featuring our CEO, Bruce Phillips, and Xero on how to be prepared for taxes.
Also, here is a link to a tax tip story presented by PayPal with additional information on how HPC, PayPal and Xero can help you prepare for taxes ahead of time.
We continuously post new videos and articles on our Blog and Social Media to help businesses stay ahead of compliance and growth challenges. Please subscribe to our Blog to stay informed.
If you’d like to discuss getting pro-active advice to help you plan for taxes and grow your business, please use the link below to setup a conversation with HPC and see how we can help!