Fractional CFOs Prepare Your Business for Taxes
I recently wrote an article about one of the things I’ve noticed when “talking shop” with business owners. Many of them aren’t really clear on what a firm like KBS CFO can actually do for them. I got into the advisory nature of what CPAs bring to a business client and how CPA-led KBS CFO brings strategy, not just execution, to the table.
As I mentioned in that recent article, when business owners hear that I’m a CPA, they often assume that we prepare income taxes. Seems like everyone has taxes on the mind this time of year so I figured we could take a deeper dive into that part of the equation, if you will.
CPA-led firms like KBS CFO work with tax advisors that prepare INCOME tax returns. We perform the crucial steps required for the tax preparation and then that information is forwarded to tax preparers. So, while we do not PREPARE TAXES in the way the public normally perceives, we prepare your business for tax time.
There are a lot of different types of taxes and KBS CFO helps our clients with some of them, like sales, excise (alcohol), personal property and payroll taxes. But, because there are so many specific details to the tax code, we hand off the preparation of INCOME tax returns to CPA firms we partner with that specialize and have all the tools in place to prepare business and individual income tax returns.
We Work with Tax Accountants and Advisors
At KBS CFO, our CPA firm collaborates and works with tax accountants and advisors. I loop in tax advisors that study tax regulations every day. I quarterback all the advisors, including tax accountants, to get my clients to their goals.
We Help Businesses with complying with the many Business Taxes, Not Income Taxes
Different CPA firms assist businesses with compliance in different ways. Construction companies have tons of labor and staffing so we ensure that our clients are complying with the payroll tax regulations and have a payroll service in place that works well with the industry.
Distilleries have excise (alcohol) taxes to contend with so we ensure there are systems in place to manage an audit and comply with the complexities related to TTB reporting. Businesses that sell products to the general public, like a craft ice cream brand, for example, have sales taxes to collect and report, so we help with that, too.
We Prepare Your Business for Taxes
Unlike a tax accountant who primarily focuses on accurately preparing and filing income tax returns, CPA firms like KBS CFO take a more strategic role. Similar to those CFOs and Controllers that work with larger businesses full-time, we partner with the experts to seek out potential tax-saving strategies, as well as optimizing the timing of certain transactions to minimize the business’s tax burden. This is just one component of the strategic role, and can help with managing cash flow.
There are many highly qualified tax advisors and preparers and those individuals play a crucial role for small businesses. We work so well together. In fact, tax accountants are an excellent referral source for KBS CFO and vice versa. In fact, please do reach out if you are looking for a referral for income tax preparation and tax advisory. It’s always so rewarding to pass on the name of a few more trusted advisors and colleagues.