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 deductions 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 business 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 business 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 business 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 tax 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.

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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 accounting 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
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Natalie Knight
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Prusiensky CPA is up to date on technology. They handcraft a platform that works best for your company's accounting 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 accounting 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
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