1585 Flat Rock Court Columbus, Ohio 43235 Phone 614.560.3113 Fax 614.932.9321 info@floydbc.com
Case Studies
Self-Employment
One area in particular where we feel like we can help people is when they are self-employed. A certain number of our clients were in this situation when we first started working with them. Here is a classic story about one of our first clients we had the pleasure of working with.
When I first met with this client four years ago he was recently married and just starting a family. His wife was taking time off from her job to take care of their baby and he had been working for himself for the past year and really wanted to increase his income for the year going forward. He was experiencing problems with taxes, keeping track of his business records and was concerned about any personal liability exposure associated with being self-employed.
After meeting with him to discuss ideas it was decided that it would be best for him to set up a separate entity to run the business through. We discussed different tax elections for his business entity and also set up a check-coding and sales spreadsheet for him to accurately and easily keep track of his business activity. This separate business also gave him personal liability protection (As always, we recommend that you discuss some of these issues with your attorney).
The results of this meeting and the implementations we set in motion were very positive. He saved over $3,000 on his next year’s tax bill, had instant access to his bottom line at the end of each business day and he slept well at night knowing that he and his family are personally protected from any liabilities that might arise in the business.
His only regret was that we didn’t meet and implement these ideas earlier. He mentioned his situation and our solution to a friend of his as she was in a similar predicament. She is a client of ours now and is enjoying similar success in her business and personal life.
Antiquated Accounting
Another area where we can help are for the people who are spending too much time keeping doing simple bookkeeping tasks, writing checks and using ledgers to keep track of their information.
Paperwork. This word can strike fear into a busy small business owner. Paperwork takes up valuable time that needs to be spent doing other things to make sure the business turns a profit. We had one client who spent a lot of time writing checks and sending them to his accountant’s office to have them process the information. Then one day he needed some current business information to satisfy the request of a loan underwriter and his accountant had not yet updated his information.
When he came to us the best we could do at the time was to quickly post the information he had provided to satisfy his near-term need. We then asked if he would be interested in using a system that would allow him to do far less work than he was doing currently. We set up Peachtree in his office which allows him to easily write checks and track sales while he remains in total control.
The information that he used to wait weeks and weeks for his accountant to provide is now at his fingertips. His professional fees expense has also decreased by over $20,000/year and he has freed up time to focus on something other than the amount of paperwork he needs to process.
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