Year-End Tax Considerations for Small Business Owners.
CPA Matt Chiappetta shares Year-End Tax Considerations for Small Business Owners (starting at 10:00).
Matt is Henry’s CPA, and he is excited to have him on the podcast to share his tips and advice on year end tax planning for small business owners.
He also shares his entrepreneur journey and why he decided to open his own business.
Matt is the CPA for Solopreneurs and small business owners.
Matt Chiappetta helps optimize the financial lives of Solopreneurs by focusing on personal and business tax planning, and all the other little details that encompass their financial life.
In his past life, Matt was the CFO of a Registered Investment Advisory firm, and Corporate Controller for a manufacturing business where he assisted with a healthy 8-figure exit for the owners.
Matt has built a lifestyle business to support his most important role, as the father of two kids under 5. He is an avid fitness junkie, softball player, and by his own admission, a depressed Chicago sports fan.
Matt lives in Chicago area.
Schedule a Free Consultation with Matt today.
Matt is a Trusted Service Partner of The How of Business.
Year-End Tax Considerations for Small Business Owners
- Why did you study Accounting and Finance and why did you start your own CPA firm?
- When did you know you wanted to be your own boss? Who were early entrepreneurial influences?
- Why are you a business owner? What does it provide you with?
- How do you balance your business and your personal life?
- Avoiding Tax Surprises: Keeping tabs on current year taxes with your CPA so you don’t get hit with a surprise tax bill. How often should I be meeting with my CPA?
- Entity Selection: S-Corp vs other entities. When and why should I file for S-Corp status?
- Reasonable Compensation: Minimizing your salary to minimize employment taxes for your S-Corp. What is the threshold when it’s best to pay myself through W2 versus incurrent self-employment taxes?
- Accountable Plans: Home Office Deductions. What are the requirements for this deduction?
- Augusta Rule: Renting to your S-Corp. When should I consider this? Does it apply to an LLC also?
- Health Insurance: Please explain Self-Employed Deduction and HSA Contributions.
- Retirement Contributions: Solo 401(k) vs SEP vs SIMPLE and Long-Term Tax Planning (lowering your lifetime tax bill)
- Health Insurance: Best way to pay for this and get the best tax treatment?
Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.
Resources:
Books mentioned in this episode:
[We receive commissions for purchases made through these links (more info)].
- Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
Other Podcast Episodes:
You can find other episodes of The How of Business podcast, the best small business podcast, on our Archives page.
Sponsors:
This episode of The How of Business podcast is sponsored by Relay.
Special offer for The How of Business listeners, sign up for Relay using this link and you’ll also get $50 added to your account once you fund your new account.
This episode of The How of Business podcast is sponsored Relay. Relay is an online banking and money management platform for small business.
As a small business owner, you need banking that’s truly built for your small business. No more fees. No minimum balances. No more bookkeeping problems come tax season. And no more branch visits to complete basic banking tasks.
Now you can take control of your money with Relay, an online banking and money management platform that puts you in complete control of your cash flow.
First, there are no account fees, no overdraft fees, and no minimum balances, which means you get to keep more of your hard-earned money.
And Relay is the official banking partner for Profit First. So you can set up multiple checking and savings accounts and automate their percentage-based allocations using smart transfer rules.
Relay also allows you to:
- Make unlimited payments via ACH, wires or checks.
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- Provide secure, read-only access to your accountant and bookkeeper.
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Best of all, it takes less than 10 minutes to apply online and it’s absolutely FREE!
Special offer for The How of Business listeners, sign up for Relay using this link and you’ll also get $50 added to your account once you fund your new account.
Relay customer deposits are FDIC Insured through their partner bank, Thread Bank, member FDIC. Relay is a financial technology company, not an FDIC-insured bank. Banking services and FDIC insurance provided through Evolve Bank & Trust and Thread Bank; Members FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted.
We have received compensation from this sponsor partner. We only accept sponsorships from companies who we believe provide products and services that are valuable for small business owners.
What to consider when hiring a CPA:
When selecting a Certified Public Accountant (CPA) for your small business, consider the following factors:
- Relevant Experience: Look for a CPA with experience in your specific industry. They should be familiar with the unique challenges and financial practices of your business type. But most importantly, they should specialize on working with small businesses.
- Qualifications and Credentials: Ensure they are licensed and have relevant certifications. Check if they are members of professional accounting organizations.
- Services Offered: Confirm that the CPA offers the services you need, such as tax preparation, financial planning, business advising, bookkeeping, or auditing.
- References and Reviews: Ask for references from other small businesses and check online reviews to gauge their reputation and reliability.
- Communication Skills: Choose a CPA who communicates clearly and promptly. They should be approachable and willing to explain complex financial concepts in understandable terms.
- Availability: Ensure they are available when needed, especially during critical financial periods like tax season or end-of-year accounting.
- Proactive Approach: A good CPA should be proactive about tax savings, financial opportunities, and keeping your business compliant with changing regulations. Ideally, you should meet with your CPA several times throughout the year – not just when it’s time to file tax returns.
- Technology and Tools: Check if they use modern accounting software and tools that can integrate with your business systems.
- Fee Structure: Understand their fee structure and ensure it fits within your budget. As with many CPA, Matt Chiappetta offers a free consultation. Use this opportunity to decide if a CPA is the right fit for you and your small business.
- Personal Compatibility: It’s important that you feel comfortable with your CPA as they will be handling sensitive financial information.
- Ethics and Integrity: The CPA should have a strong ethical code and prioritize your business’s best interests.
- Location: While not always crucial, having a CPA nearby can be beneficial for in-person meetings and local financial insights.
Selecting the right CPA is a critical decision for your business’s financial health and growth. It’s worth taking the time to find someone who is not only qualified but also a good fit for you and your business’s specific needs.