Cash Flow – DougFreemanCPA.com

In financial planning, forecasts and projections aren’t the same

Financial Oversight, Financial Planning, Financial Projections, Financial Statements, Small Business, Small Business Owners / Douglas Freeman

Businesses are rightly encouraged to regularly generate professionally prepared financial statements. Doing so is important for both understanding your own financial position and providing accurate, comprehensive information to stakeholders such as investors, lenders and advisors. However, keep in mind that financial statements are historical records. They depict the state of the company at a given […]

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Like every business, a start-up needs a sensible budget

Budgeting, Business Start Ups, Cash Flow, Small Business / Douglas Freeman

An impressive 432,834 new business applications for tax identification numbers were submitted during October 2022, according to the U.S. Census Bureau. Indeed, despite the relatively higher costs of doing business these days, plenty of start-ups are still launching. One thing that every new company needs, along with a business plan, is a sensible budget. And

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Help when needed: Apply the research credit against payroll taxes

C Corporation, Income Tax, Payroll Tax, Payroll Tax Election, Research Tax Credit, Small Business, Small Business Owners, Social Security & Medicare (FICA) taxes / Douglas Freeman

Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses

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4 red flags of an unreliable budget

Budgeting, Small Business, Small Business Owners, Strategic Business Planning, Year End Planning / Douglas Freeman

Every business should prepare an annual budget. Creating a comprehensive, realistic spending plan allows you to identify potential shortages of cash, possible constraints on your capacity to fulfill strategic objectives, and other threats. Whether you’ve already put together a 2022 budget or still need to get on that before year-end, here are four red flags

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Get your piece of the depreciation pie now with a cost segregation study

Cost Segregation Study, Deductions, Depreciation, Small Business / Douglas Freeman

If your business is depreciating over a 30-year period the entire cost of constructing the building that houses your operation, you should consider a cost segregation study. It might allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of a cost

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5 ways to take action on accounts receivable

Accounting, Accounts Receivable, Small Business / Douglas Freeman

No matter the size or shape of a business, one really can’t overstate the importance of sound accounts receivable policies and procedures. Without a strong and steady inflow of cash, even the most wildly successful company will likely stumble and could even collapse. If your collections aren’t as efficient as you’d like, consider these five

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Don’t assume your profitable company has strong cash flow

Cash Method of Accounting, General Accepted Accounting Principles (GAAP), Small Business / Douglas Freeman

Most of us are taught from a young age never to assume anything. Why? Well, because when you assume, you make an … you probably know how the rest of the expression goes. A dangerous assumption that many business owners make is that, if their companies are profitable, their cash flow must also be strong.

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Adjust your expectations of business interruption coverage

COVID-19, Insurance / Douglas Freeman

A natural place to turn when disaster strikes is insurance. The very reason you pay premiums and deal with the paperwork is to have these risk management policies in place when necessary. But, when it comes to business interruption coverage, you may have to adjust your expectations if you intend to file a claim because

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Using your financial statements during an economic crisis

Accounting, Assets, Business Expenses, COVID-19, Entrepreneurs, Financial Statements, Small Business / Douglas Freeman

The economic fallout from the coronavirus (COVID-19) pandemic has forced business owners to reevaluate their operations and make difficult decisions. One place to look for the information you need to make rational, reasonable moves is your financial statements. Under U.S. Generally Accepted Accounting Principles, these typically comprise a statement of cash flows, a balance sheet

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Getting help with a business interruption insurance claim

Insurance, Small Business / Douglas Freeman

To guard against natural disasters and other calamities, many companies buy business interruption insurance. These policies provide cash flow to cover revenues lost and expenses incurred while normal operations are limited or suspended. But buying coverage is one thing — making a claim and receiving the funds is quite another. Depending on the scope of

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