GP CPA Client’s Letter – May 2019

by | May 2, 2019 | Blog, Taxes | 0 comments

Dear Client:

It was good seeing you both again. Each time we meet the numbers and growth are getting better and better.

The key items we spoke about during the meeting are as follows:

  • The 2018 personal taxes due, totaling about $20K, were a “best case scenario” considering the taxable income generated during 2018. Some carried over from 2017 (equipment write-offs) that took $100K off of the top line of the Company’s income and reduced your 2018 taxes by about $30K.
  • The loan has an incredibly low-interest rate. Paying the loan off earlier does not benefit you as long as there are other debts with higher interest rates. I understand your desire to be debt free, although I strongly encourage you to prioritize generating cash flow and sales growth over paying down the loan due to its low-interest rate.
  • Please contact an attorney that you are comfortable and familiar with to get some assistance with negotiating the rent terms. The circumstances surrounding the Company’s ability to rent the space for a set time frame and price are not as formal as the loan and that could be a potential issue in the future.
  • Based on your prior year W-2’s and this year’s payroll you should have no issues qualifying for a mortgage in 2020. I wish more of our clients understand the relationship between payroll and creditworthiness.
  • If you have unused or unproductive machinery that can be sold, the proceeds would go a long way toward the purchase of a new machine or paying down the newest financed machine’s balance. Depending on the actual amount received from disposing of the older machines, you may want to consider splitting the funds received between a down payment on a new machine and paying down an older machine’s loan.
  • We also noted that your payroll payments (paid monthly) are getting fairly significant. Since these payments are paid monthly and quarterly, it has the potential to make for a cash crunch if one of your major customer’s is slower to pay than normal. Consider switching your payroll to make weekly payroll deposits to keep cash flow consistent. This way, you could push off supplier payments and still make payroll if a customer stalls on payments.
  • Let’s schedule another meeting or phone call in late May to catch up and review how things are going.

MORE ARTICLES FROM OUR BLOG

Pros and Cons of 401(K) Loans & The Tax Impact of a Child’s Investment Income

Are You Sure You Want To Take That 401(K) Loan? With summer headed toward its inevitable close, you may be tempted to splurge on a pricey “last hurrah” trip. Or perhaps you’d like to buy a brand new convertible to feel the warm breeze in your hair. Whatever the...

Forming a Management Entity

Many organizations experience a level of growth that stretches the or executive team thin across several entities. This is especially true when there is one executive that is responsible for the day to day decisions of several operating units or...

March 2019 Tax Update. Home-office deduction and QBI

When possible, you want to claim that your office in your home qualifies as a principal place of because of this classification gives you the home-office deduction, andeliminates commuting from your home to your regular office.

Unlocking value in real estate

TL;DR Summary: Only a cost segregation study can unlock the value of your commercial property for a large deduction.Real estate has long been held as a way to build wealth and there are many examples out there (good and bad) of those who have made their fortunes...

A recipe for taxes…

GMP CPA has not memorized the code like we have the Joy of Cooking, but we reference both a lot. If your current accountant is not the advisor you hoped them to be, or you want more dark chocolate M&Ms in your life, GMP CPA would love to talk to you about your business. We may even bring cookies!

Hi GP CPA Client!

Dear GP CPA Client:At the rate the company is going, you will end up with an $18,000 tax bill at the end of year.  With about 20 weeks left in the year, we would need to move your payroll up to about $1,000 per week (its currently at $500) and put most of the paycheck...

H. Johns
H. Johns
21:58 13 Jul 19
This firm is absolutely the best that I've dealt with when it comes to CPAs and financial advice. I'd gone to another CPA in the area for help with my small business during tax time, they stopped communicating and I was left with important documentation not filed and a lot of anxiety around what to do. My appointment with Justin was set up quickly and I was in within a couple days to sit down with him. When you first meet him, you get the impression that he's incredibly intelligent and knows what he's talking about. He took the time to guide me through each and every step that I needed to take to move forward and actually ended up saving me money. I am so grateful to him for his knowledge and professionalism. Total life saver! If you're a small business owner, you should not be taking your time, money or business anywhere else but GP CPA and their crew 🙂read more
Tina Simmons
Tina Simmons
13:38 17 May 19
This team is dedicated to their clients and committed to understanding your business and sharing their knowledge to help you succeed. I love working with these folks, they take the worry and uncertainty out of and taxes!read more
Bravo4 Autowerks
Bravo4 Autowerks
12:55 08 May 19
Gary and his team have been fantastic for me and my business. They respond well to all my questions, are very helpful and of course keep my financials in order. Highly recommended.read more
Queen City Newborn Care
Queen City Newborn Care
15:57 02 Apr 19
I was drowning before I met Justin. He totally transformed how I run my small business and has gotten me organized in ways I didn't even know were possible. I am so grateful for his advice and suggestions! This company is worth every penny.read more
Dennis Bloomberg
Dennis Bloomberg
16:01 26 Mar 19
Unfortunately, I found GMP when my mother passed. She had a trust set up and I had no experience with one. I received excellent advice prior to filing taxes, that allow for the transfer of assets with little tax implication. The tax process was simple for me, Justin took over once he had details and cleared up all question from filing our taxes. Thank you for a job well done!read more
Natalie Knight
Natalie Knight
15:35 21 Nov 18
Prusiensky CPA is up to date on technology. They handcraft a platform that works best for your company's services. We really appreciate how hands on and quick their team is when replaying to any type of correspondence. Simply put, they care and want your company to succeed.read more
Ashlyn Lelej
Ashlyn Lelej
14:39 21 Nov 18
I highly recommend Justin at Prusiensky, CPA for all of your and tax needs. I've been a client for over two years, and have been consistently impressed with their dedication to helping my business grow and be financially successful. His advice is invaluable. Thank you!read more
Bobby Nguyen
Bobby Nguyen
22:23 20 Nov 18
My partner and I started our very first small business last year. Justin has been a blessing to us. Being new at all of this, we didn’t understand much of how business taxes work. Justin explained and answer all of questions that we have. He took care of everything for us throughout the year and have made life so much easier for us. I couldn’t have asked for a better CPA. Highly recommended!read more
Next Reviews

CATEGORIES

Xero and electronic payment processing options (PayPal, Stripe, IntegraPay, Square, Plooto)
Wonder how GP CPA's “takeout drawer” looks after the end of tax season?
How would like to contact us?