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Category Archives: Business Tips

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How to Manage Social Media for Small Business: 12 Tips

Posted on June 30, 2023 - 4:15 pm by

Social media is ubiquitous. We stay connected to friends, keep family updated, and even get our news from social media. It can often feel like a “personal” thing though. By its name alone, it seems like something for after-business hours. Right? In this modern online world though, social media is an important tool for small business owners to take advantage of.

Consumers now rely on local groups to get purchasing advice. They’re influenced by ads and reviews on every social network they’re a part of. Most networks now have built-in shopping platforms. Many small business owners choose not to take advantage of social media networks for their business for a host of reasons. They’re too busy. Social media is intimidating or confusing with the constant changes and increasing complexity. Or, they just don’t like social media! Whatever your reasons, we have a few (relatively pain-free) recommendations for the average business owner.

  1. Just create a page

    2. In searching the web, many potential clients or customers may find your social media page before they find even your website. Often, consumers will look to social networks when they have questions about a business rather than checking a website. Currently, having a page on a few of the major social networks is a baseline expectation from your customers. Take that expectation seriously and start building your page. Make sure you’re using a clear and crisp logo, updating your profile picture, cover photo, business description, and contact info. If you have all the pieces ready to go, building your page will take less than an hour.

  2. Learn the platform you’re on

    3. Not every platform is the same. There are technical differences like the number of characters, but more importantly, users expect different styles of content on each platform. Facebook is highly interactive. LinkedIn is for business – posts perform well if they feature business advice and acknowledge the accomplishments of others. Twitter is super short form. Instagram is highly visual and a little more casual. Hashtags aren’t really for Facebook, but definitely for TikTok. Understand the audiences, interaction styles, and cadence that works best on each platform. Don’t feel like you must be on every one, just identify which networks best fit your audience and bandwidth, then start there. Adjust your style to suit the platform.

  3. Make it informative

    4. As previously stated, your customers may find your social page before they find your website. Consider – does your current page create the kind of first impression you want them to have? Make sure to keep your basic information like hours of operation up to date. Then, use your posts to create an informative experience akin to your website. Focus on regularly reintroducing your business and the value you offer. Introduce staff and update visitors on how your business may be recognizing upcoming holidays.

  4. Make it personal

    5. Posts featuring real people and their stories typically have the strongest performance. Take advantage of this trend by creating posts that talk about your staff and your clients. Then, tag those individuals to increase your reach. You can take this concept of staying personal further by considering your personal social profile. As a business owner, it is hard to separate yourself from your business. Embrace that concept and become the figurehead for your business. Techniques could include: Using your personal profile to reshare posts from your business page. Inviting your personal connections to follow your page. Adding a personal or behind-the-scenes style perspective to the content your share.

  5. Stay consistent

    6. The key to having a strong social presence is staying consistent. Not only will the social algorithm fail to show your content to your followers if you maintain a spotty posting schedule, but you also won’t be building your reputation and value to your customers. Before you start posting, consider all of the factors that will impact your ability to publish content, then choose how often you can realistically post each week. Once you’ve made that commitment, don’t deviate from it. You can slowly ramp up or back off slightly, but a sudden absence will hurt your page.
    You also want to stay consistent with the style of your content. Try to adhere to a consistent color palette and font with your posts. Remember, if a client visited your website, they’d get a cohesive impression of your brand, and playing around with too many styles on your social platform will feel disjointed.

  6. KISS – Keep it simple silly

    7. A part of staying consistent is setting realistic expectations for your social media plan. Don’t feel like you have to do it all! Start small and simple, then ramp up as you further understand the platforms you’re on and your bandwidth increases. It’s far more important to remain consistent than to post four times a day for a week, and then not at all for two months. It’s ok if you don’t have a videographer on staff to produce your videos. You don’t need to participate in every trend or create a work of art for every post to create a solid social media presence.

  7. Look for inspiration

    8. Do NOT copy content or ideas from other pages! DO look to pages you enjoy, content you respond to, or businesses with similar products or services for inspiration. Paying attention to these other pages may help you come up with your own posts. Look for trends you can participate in or a selling point that differentiates you. Understanding what your peers are doing and building off that will only strengthen your social presence.

  8. Engage

    9. Social media was developed around the concept of interaction and connection. That means your pages and posts will perform more strongly when you operate like a real person interacting with others. Make every effort to respond to every comment a post receives. If you can encourage an ongoing conversation in the comments, even better! Create posts or content that encourage your followers to comment or share with others. If you receive messages, respond to them as quickly as possible; within a few hours is recommended. It’s possible to program in templated responses to common questions. This can make the process of responding quicker, easier, and more on-brand.

  9. Join groups

    10. On your personal profiles, begin joining groups where your audience may be active. This could be a mom’s group for your childcare business or a local community exchange. Don’t spam group members but respond to requests for business recommendations or information that may be relevant to your business. Think about it as providing value to the group you’re a part of rather than advertising.

  10. Be authentic and timely

    11. Growing your social media following should be a core goal of building a social media plan. And nothing will make your followers lose interest in your page like a steady stream of advertisements. Your content should feel entertaining and informative – like a real person posted it, not a faceless corporation. You can achieve this through a mixture of content scheduled in advance and raw photos or videos posted right as the moment happens. For instance, Padgett will post a photo of a staff outing one day and a well-researched blog about an upcoming tax change the next.

  11. Take advantage of tools and resources

    12. The internet is full of educational resources on social media. You can find scheduling templates, content calendars, and posting tips for every industry and skill level. There are even free courses on managing social media on networks like LinkedIn. Websites like Canva offer a free design tool with a wide range of templates and graphics for creating posts. Use these professionally developed templates to create beautiful posts with minimal effort. Apps on your phone allow you to easily edit photos or shoot videos.
    And most importantly, remember that if you HATE social media, you don’t have to be the one to manage it. Think about delegating the responsibility to an employee. Just remember to give them the time and resources they need to help.

  12. Find a partner

    13. This may all sound like a lot to manage, but it doesn’t have to be. Setting aside as little as fifteen minutes a day to focus on social media can be effective. However, if you’re ready to take further advantage of social media, like exploring ads, consider finding a professional to work with. We speak regularly about the value of finding a partner in your business finances. The same can be said for your social presence.

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Financial KPIs, EBITDA, Gross Profit, and 12 other financial terms you should know

Posted on June 7, 2023 - 4:42 pm by

Financial literacy: “the knowledge and skills that give you the ability to manage your finances, including budgeting and investing” 

Financial literacy is the key to successful money management and the reduction of financial stress. Yet many people struggle with financial literacy, to the point that the National Financial Educators Council (NFEC) estimates that financial illiteracy cost the U.S. population more than $352 billion in 2021 alone. 

Below, we have a defined a few key financial terms to improve your financial literacy and support your money management abilities: 

  1. Financial KPIs: Financial key performance indicators are quantifiable metrics that help measure a business’s performance in terms of things like revenue, expenses, profits or other financial targets.
  2. EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization. It is a metric used to evaluate a business’s profitability and a common starting point in determining a company’s value. It is calculated using this formula: EBITDA = Net Income + Taxes + Interest Expense + Depreciation & Amortization.
  3. Gross Profit Margin: A metric often used to analyze a business’s financial wellbeing by calculating the amount of money made from product sales after cost of goods is subtracted,
  4. Net Income: The amount of profit left after subtracting other costs (selling, administrative and other general expenses) from the gross profit margin.
  5. Accounts Receivable (AR): The amount of money owed to a business for good or services delivered that hasn’t been paid yet by the customer.
  6. Accounts Payable (AP): The amount of money that a business owes to its creditors or suppliers.
  7. Return on Capital: A payment (also known as a return) received from an investment that is not considered taxable income or capital gain.
  8. Capital Gains: Income that results when an asset is sold for more than you originally paid for it.
  9. Capital Loss: The opposite of capital gain; A possible tax deduction resulting from an asset being sold for less than its cost or book value.
  10. IRA: Individual Retirement Account, which may be one of the several types. Traditional IRAs are typically funded with pre-tax dollars while Roth IRAs are often funded with after-tax money.
  11. Defined Contribution (DC) Plans: A type of retirement plan (such as a 401k) in which employees contribute a set amount of their wages to the account, usually pre-tax.
  12. APR: Annual Percentage Rate; refers to the amount of interest on a loan or investment, not including compounding interest.
  13. APY: Annual Percentage Yield; refers to the amount of interest on a loan or investment, including compounding interest.
  14. Articles of Incorporation: A set of documents filed with the government to legally create a corporation, such as a C-corp or S-corp.
  15. Articles of Organization: Similar to Articles of Incorporation, these are a set of government documents files to create a limited liability company (LLC).

If you want to continue improving your financial literacy or are worried about your finances, Padgett’s nationwide network of CPAs and EAs can help. Our advisors can work with you to understand your personal or business finances and can help you make financial decisions with confidence. Find an office near you today!

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Hiring teens for the summer? Here’s how

Posted on May 9, 2023 - 7:14 am by

Each May and June, millions of teenagers begin their search for a summer job. Before hiring teens for any summertime help, it’s a good idea to be aware of the Federal and State laws governing youth in the workplace. The Fair Labor Standards Act (FLSA) youth employment provisions are designed to protect young workers by limiting the types of jobs and the number of hours they may work, based on the age of the minor. The following provisions apply to nonagricultural occupations:

18 Years of Age: Once a youth reaches 18, the Federal child labor provisions no longer apply to them — they can work any job for any number of hours. Remember that states have their own labor laws, so be sure to check your state’s work laws in non-agricultural work. 

16 & 17 Years of Age: Under the FLSA 16- and 17-year olds may work on any day for any number of hours. However, individual states may limit the hours or the times of day that anyone under the age of 18 may work. Also, all youth under the age of 18 are prohibited from working any non-farm jobs deemed hazardous.

14 & 15 Years of Age: 14- and 15-year-olds may work:

  • Non-school hours
  • 3 hours on a school day
  • 18 hours in a school week
  • 8 hours on a non-school day
  • 40 hours in a non-school week
  • Between 7 a.m. to 7 p.m. (except June 1-Labor Day when hours are extended to 9 p.m.)

Alert to parents who hire their children

There’s a lot to be said for hiring family members to work in your business. Hiring your children won’t only provide them with spending money…your business may obtain a deduction for their wages as well.

Since there’s no specific exception from income tax withholding for wages you pay to family members, you’ll generally have to withhold income taxes from the wages you pay them. However, you’ll be relieved from some FICA taxes and federal (and perhaps even state) unemployment taxes, depending on the type of entity and ownership makeup.

Keep in mind, the Social Security Administration (SSA) may question the validity of wages if the recipient is on record as a young child. Unless you can provide acceptable detail such as date of birth and job responsibilities, your child may not be given credit for the correct amount of wages.

In fact, the information obtained may be given to the IRS or the Department of Justice for investigating and prosecuting violations of the Social Security Act. Matching programs compare the SSA’s records with those of other Federal, State, and local agencies, which are often used to find or prove that a person qualifies for benefits paid by the Federal government.

Rule of thumb: Put your child on the payroll only if there is a legitimate job offering with responsibilities that are within the child’s capability…and then, make sure that your child does the work!

If you are looking into hiring teens or your own children, a Padgett business advisor can help you make sure you’re following the regulations for their schedule and making the most of available tax deductions. Find a location near you today.

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When a hobby becomes a business: 9 key factors

Posted on April 17, 2023 - 2:32 pm by

There’s a saying that everyone should have three hobbies: one to keep you in shape, one to keep you creative, and one to make money.

Many people have found hobbies that make money. In fact, a 2019 survey found that 27% of full-time workers have monetized their hobbies. Another 55% said they would like to turn their hobby into a business, and interest in building a “side hustle” has only grown since then.

With millions of Americans now monetizing their hobbies, it’s important to understand how a side hustle could affect your taxes.

Hobby or business?

Hobby and business tax rules are different and it’s important to understand the distinctions to avoid any potential issues with the IRS. So, at what point does your money-making hobby become a business in the eyes of the IRS? There’s no checkbox for you to claim one way or the other. The main differentiator comes down to motive. Businesses have a goal of earning a profit, while hobbies are activities that are pursued for personal enjoyment.

Here are nine more factors the IRS may consider when determining if your side hustle is a business or a hobby:

  1. Does the activity make a profit in some years? How much profit does it make?
  2. Were you, as the taxpayer, successful in making a profit in similar activities in the past?
  3. Do you and your advisors have the knowledge needed to carry out the activity as a successful business?
  4. Do you change methods of operation to improve profitability?
  5. Does the time and effort you put into the activity show that you intend to make it profitable?
  6. Was the activity carried out in a businesslike manner, and did you maintain complete and accurate books and records?
  7. Do you depend on income from the activity for your livelihood?
  8. Can you expect to make a future profit from the appreciation of the assets used in the activity?
  9. Are any losses due to circumstances beyond your control, or are they normal for the startup phase of your type of business?

What are the tax differences?

Businesses are required to file an annual business tax return and report all income earned. They can also deduct expenses related to their business activities, such as rent, supplies, and salaries paid to employees. Hobbyists are still required to report any income they made through their hobby on their individual tax returns, but hobby expenses are no longer deductible.

Another key difference is that businesses can carry forward losses incurred in previous years to offset future profits, while hobbyists can’t. Additionally, businesses may be subject to additional taxes, such as self-employment tax, but income from hobbies is not.

Be aware: if your business isn’t profitable and you’ve claimed a loss for too many years, the IRS could consider it a hobby and prevent you from claiming a loss or deducting expenses. In that case, you’d need to prove that profit was the intent in order to claim business deductions.

That’s also where the safe harbor rule comes in. Typically, if your business has been profitable in at least three out of five consecutive years, that’s a signal to the IRS that it’s a valid business, not a hobby.

Making a hobby into a business

If you want to be seen as a business rather than a hobby, it can help to follow best practices like:

  • Setting up a business checking account
  • Separating personal and business expenses
  • Keeping good business records
  • Choosing the appropriate entity structure for your business
  • Staying in compliance with other state and federal tax laws, such collecting sales taxes
  • Having regular business hours
  • Maintaining a business website and/or social media accounts

If you need help determining how you qualify or are looking to grow your business, Padgett’s network of EAs, CPAs and business advisors can help! Find a location near you today.

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Employee gifts: the must-know tax rules

Posted on March 3, 2023 - 10:03 pm by

How do you show your employees you appreciate their hard work? If you choose to give your staff gifts or throw them a party, remember that only certain types of gifts are tax deductible. Here’s a quick overview of some employee gift options to help you show your appreciation: 

Employee Gifts:

The IRS doesn’t recognize non-cash gifts of nominal value as taxable income, but rather as a de minimis fringe benefit (one in which the value and number of times it’s given is so small, accounting for it isn’t practical). But cash or a cash equivalent — like gift certificates or gift cards, or prepaid cards — are taxable employee gifts. Regardless of the amount, cash gifts must be included in the employee’s wages.

However, depending on circumstances, the IRS states that a gift certificate for a specific item can be considered a de minimis fringe benefit. The item must be one “that is minimal in value, provided infrequently, and is administratively impractical to account for.” 

Parties: 

Thinking of throwing an office party? Remember, the food is fully deductible only if the party is for the benefit of employees and their families. Historically, if clients, independent contractors, or customers attend the soirée, then entertainment rules apply and only 50% of the food and beverage costs associated with these partygoers are deductible (and this applies even if you hold the party virtually). Don’t get too lavish! The IRS always keeps an eye on business deductions and the costs associated with an extravagant event. 

Thinking of showing your thanks with some employee gifts this year? Reach out to our trusted network of accountants, tax experts and business advisors at Padgett so we can help ensure your employees benefit from the present and you make the most of the available tax deductions. Find an office near you today!

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8 tips to manage stress during tax time

Posted on February 8, 2023 - 10:44 pm by

When filing mistakes can be costly, it’s understandable that tax time can be stressful if trying to handle your finances on your own. This time of year can be especially difficult if you’re dealing with issues like Seasonal Affective Disorder, as wintry weather can add extra stress. So, how do you manage stress to stay in control now and during other stressful times?

Avoid financial surprises.

Last year, Capital One found that 73% of Americans say their finances are a major cause of anxiety. But money doesn’t have to be so stressful! While you can’t always predict a costly emergency, working with an accountant throughout the year can help you avoid many other unexpected costs, like a surprise tax bill. With a good accountant by your side, finances can be one less worry on your plate, allowing you to feel more in control of your situation.

Keep your desk or work area clean.

If you’re feeling overwhelmed, try tidying your workspace. You may find that a clean desk can be a huge boost to your productivity—up to 84%! Regularly cleaning and disinfecting commonly touched surfaces can also help you avoid getting sick.

Open and sort any physical mail.

When you get mail, open it, and consider what kind of mail it is. Is it something to do, something to delegate, something to file, or something to toss? Sort your mail accordingly. Make sure you’re holding onto any financial statements or tax documents for your accountant. Don’t forget to actually do the task or toss the junk! Even neat piles become a mess tomorrow.

Organize your email inbox.

Read your incoming emails and sort them the same way as your physical mail. If you find email notifications distracting, you can try a strategy called email batching. Instead of checking and responding to emails constantly, set aside time to respond to them in “batches.” Checking your email only a few times a day can help you manage stress and may give you more time to focus on other tasks.

Set realistic priorities.

Don’t overload yourself or commit to doing more than you’re able. Consider what you can realistically get done in your time frame. If you’ve already overcommitted, prioritize your tasks. Do what you can, and for what you can’t…

Communicate honestly and promptly.

When problems arise, let people know as early as you can if a commitment you made can’t be met. If possible, reschedule for when you will be able to meet their needs. Keeping communication open—with both your clients or customers, your staff, and your coworkers—can help avoid a lot of stress. And when you’re short on time, don’t be afraid to skip the small talk and focus on business.

Establish checklists and set procedures.

If you have standard ways of doing tasks, you may find yourself feeling less worried about things getting done correctly. Research has shown that having a routine can make it easier to manage stress. Whether it’s getting your financial system organized with an accountant, setting procedures for handling incoming tasks, or just developing daily habits for yourself, maintaining structure during stressful times can help you feel like you’re in control of your surroundings.

Don’t do it alone.   

Mental health is as nuanced and individualized as physical health, so no solution is one-size-fits-all. As with taxes, mental health is something you shouldn’t hesitate to discuss with a professional, especially if you are struggling with serious negative thoughts or intense anxiety.

If you’re feeling overworked, don’t be afraid to delegate tasks to others. That’s where Padgett can help. Finding a full-time tax and accounting partner can help take some time-consuming tasks off your plate so you can spend more time and energy on the things that matter most. Reach out to a Padgett tax professional near you today to find out how we can help get your life back in balance.

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6 tax deductions self-employed workers should know

Posted on February 1, 2023 - 10:13 pm by

There are a host of tax deductions available to self-employed individuals that can generate real savings when filing your tax return. As you prepare to file your 2022 taxes, here are a few deductions you should be mindful of:    

  1. Home office expenses: If you’re using an area of your home regularly and solely for business, you may be able to deduct expenses for a home office from your taxable business income.     

  2. Office supplies: Hang on to those receipts for pens, paper and printer ink as you may be eligible to deduct the total cost of your office supplies.   

  3. Social Security: Remember that if you’re self-employed, you’ll be paying more Social Security taxes than if you were on the payroll of a company. However, you can deduct half of these taxes on your return.  

  4. Vehicle expenses: If you use your vehicle for business, you can deduct either the actual expenses or the standard mileage rate, based on the business use of the vehicle. For the first half of 2022, the standard mileage rate is 58.5 cents per mile, and it increased to 62.5 cents per mile for the second half of the year.

  5. Section 179: This part of the tax code allows profitable business owners the opportunity to deduct up to the full cost of qualifying capital assets — like furniture, equipment and technology — immediately rather than depreciating them throughout their use. Any unused deductions can be carried forward and put toward next year’s tax return.  

  6. Food and beverages: The stimulus bill passed in December 2020 changed the deduction for meals, allowing businesses to deduct 100 percent of their qualifying food and beverage expenses if purchased from a restaurant in 2022.    

Curious about what deductions you might be eligible for on your 2022 tax return? Padgett’s talented network of CPAs, EAs and tax professionals near you can help navigate the confusing world of tax planning and filing. Find an office near you today! 

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How to set and visualize goals for the New Year

Posted on January 12, 2023 - 9:57 pm by

If you want your business to succeed, you’ve likely started to set your goals for the new year. Maybe you want to increase your revenue, hire more staff, or renovate your shop or office. Maybe, on a more personal level, you want to have more days off or decrease the hours you’re working to improve your family life.

We focus on these goals most at the beginning of the year, when resolutions and plans are a hot topic. But an estimated 80% of people who make New Year’s resolutions will fail by the middle of February. When we get back to work after the holidays, we often fall back into the same hustle and bustle and forget about all our plans for improving ourselves and our businesses. That’s why being able to visualize your goals in a more tangible way can help you stay on track. Vision boards are one way to do that.

You may have heard vision boards mentioned before — they’re a popular goal-setting tool. Oprah is one of several celebrities to praise the method, and the research backs up their claim. Psychology Today researchers have found that visualization is a very powerful method for reaching your goals, and Forbes reported that business owners who used vision boards were more likely to achieve their goals.

Simply put, a vision board is a collage of images and text that helps you visualize what meeting your goals will look like. For example, a common goal you might set is to travel more. So, to visualize the success of that goal, your vision board may include pictures of the places you want to see.

How to make a vision board

Now that you know what a vision board is and how it can help you stay on track to meeting your goals, it’s time to get started building your own.

  1. Set your goals

    The first and most important step to make a vision board for yourself or your business is to lay out your goals! Think about your short-term, mid-term, and long-term goals. What do you want to achieve by the end of Q1? What do you want to have achieved by this time next year?

  2. Imagine success

    Once you have your goals in mind, start thinking about what your life will look like if you succeed. If your goal is to work fewer hours and spend more time with family, maybe success looks like a family trip, or even just regular get-togethers. If your goal is to upgrade your workspace, maybe success looks like a new building or new equipment.

  3. Gather materials

    Now that you have the image of success, gather your materials! For a paper vision board, you’ll want a corkboard, magnetic board, poster board, or another place for you to pin up your images and text. You can cut pictures out of magazines, print online pictures, or even take some yourself. You can write down words that are significant to your goals or find motivational quotes online. Hang the pictures in a way that makes sense to you and inspires you to think of your goals, then keep the board in a place you’ll see it often.

    If you’re tech-savvy, you may prefer a digital vision board. You can use sites like Canva or Pinterest to gather and save pictures and quotes that represent your goals and assemble them into a digital collage or board. If you choose the digital route, consider making your vision board your computer or phone background, so you’re sure to see it often and be reminded of your goals.

Using your vision board

For your vision board to be as useful as possible, make sure to refer to it often. Look at it every day or every time you need a little inspiration. Your vision board can help you remember what steps to take and why you want to make those steps. Let the pictures and words remind you what success means to you.

If you still find it difficult to stay on track with your goals or need help determining what goals you should set for your business, Padgett can help! You can find a mentor who understands you and your business and can offer personalized advice and assistance with your tax and accounting needs. Find a location near you today!

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Recap: our top 10 tax tips of 2022

Posted on December 29, 2022 - 9:45 pm by

It’s hard to believe that 2022 is already coming to an end!  We’ve covered a lot of tax tips in the past year. Here’s a quick recap of some topics you may need to discuss with your tax advisor and some tips for how best to prepare for that discussion: 

  1. Make sure you check your mail for important tax documents that will be coming out soon, like W-2s and 1099s. Check out our checklist for an idea of what you need to keep on hand. 

  2. Are you self-employed? Ask your tax preparer about some deductions you may be eligible for, such as home office expenses, vehicle expenses, and qualifying food and drink expenses. 

  3. If you’re married, make sure you discuss your filing options with your spouse and your tax preparer, so that you can determine whether it’s better to file a joint return or separate ones. You’ll also need to make sure your information and withholding is up to date, if you were married recently.

  4. Own a vacation home, Airbnb or VRBO property? Be sure to discuss that rental income with your tax preparer to make sure you’re following the “mixed-use” property tax rules.

  5. Whether you won or lost, if you gambled this year, make sure to keep good records and bring your documents to your tax preparer. Gambling winnings are often taxable income, and you may receive a Form W-2G if you earned money. But if you didn’t, your losses could be tax deductible with proper documentation.

  6. If you’re expecting a large tax refund, it may be worth considering whether or not that’s actually a good thing. A large refund can be useful if those funds are handled responsibly. However, it may mean you’re withholding more than you should from your regular paycheck. You may want to reevaluate your withholding after tax time.

  7. Ask your tax preparer about your eligibility for certain education tax credits, if you or a dependent is enrolled at an eligible educational institution. Don’t forget to factor scholarships or student loans into your budget and find out what could be taxable—or deductible!

  8. If you have business travel coming up soon, make sure to talk to your tax advisor about how you could mix some leisure time in with your business travel and still get some tax deductions. 

  9. Considering purchasing an electric vehicle soon? There have been some changes to the Clean Vehicle Credit, so make sure to check the rules regarding your eligibility and discuss the details of the purchase with your tax professional. 

  10. Opting for non-cash employee gifts this holiday season is one way to help ensure the gift is considered a de minimis fringe benefit, rather than taxable income for your staff. You may also be eligible for some tax deductions on gift and party expenses, so as always, check with your tax preparer. 

The best thing you can do to save money on your taxes is to start working with a tax advisor early. Be sure to work with them throughout the year on your tax planning. A good tax advisor can help you identify opportunities to save money, but you have to make sure you have time to implement their suggestions before it’s too late.  

If you don’t have a tax professional yet, or yours isn’t a good fit, we can help. Padgett’s nationwide network of CPAs and EAs are ready to lend a hand. Find an office near you today! 

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How to choose a payroll partner: 5 key questions

Posted on December 13, 2022 - 10:24 pm by

As we prepare for the new year, many businesses are considering changing their payroll partner in 2023. Outsourcing your payroll services can offer some much-needed flexibility. That means you can focus on your customers while also providing the right attention and care for your employees.

Finding the right payroll partner means finding someone who will make sure several crucial tasks are done on time and in compliance with federal and state laws. These tasks include ensuring your employees get paid, collecting payroll taxes, and filing payroll tax forms.

As you search for a new payroll partner, it’s important to know the questions you need to ask.

Consider questions such as:

  1. How long does it take to set up my service and run the first payroll?
  2. What do you do to ensure my information is safe and secure?
  3. Are there additional fees for employee payroll when making additions or changes?
  4. Are there any additional fees for filing taxes in multiple states?
  5. If you make a mistake, are you liable, and how long would it take to fix that mistake?

There are various other tasks your payroll services partner can also tend to, from handling direct deposits to tracking employee time. And the more automated these services, the more efficient and more accurate they can be as they reduce the risk of human error entering the process.

If you’re considering changing your payroll services in 2023 or contemplating outsourcing them in the coming year, don’t hesitate to reach out to our team at Padgett! Along with our preferred payroll provider, ADP, you can trust our nationwide network of CPAs, EAs and business advisors to manage your payroll needs, minimizing the risk of penalties and easing the process so you can keep your focus on your customers. Find an office near you today!

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