All Posts tagged Business Taxes in Texas

Why Hiring a Weslaco CPA May Be the Right Choice for You

Why Hiring a Weslaco CPA May Be the Right Choice for You

Tax Day is nearly here, so it’s absolutely important to understand your current financial situation. But perhaps even more important is knowing when the help of a certified public accountant can relieve financial burdens and possibly save you money in the long run.

The Rio Grande Valley accountants at Gonzalez & Arrambide want to help you understand why you should seek the help of a tax professional with this helpful guide!

More Complex Situations Call For a More In-Depth Review

Though not always the case, a general rule of thumb is that the more complicated your financial situation, the more likely a tax professional’s guidance will benefit you. 

There are quite a few situations in which you’d be better off seeking the support of a Weslaco CPA: 

  • Self-Employment – If you own a business or work freelance, then there’s no employer to withhold taxes from your “paycheck.” It’s easy to get confused by tax details when you’ve got a business to run or contracts to complete, so working with a professional is best. Owning rental properties often falls under this umbrella as well.
  • International Income, Investments, or Bank Accounts – With increased requirements and much stiffer penalties, foreign financial assets and investments can be a nightmare come tax season. Let a professional take over in these situations.
  • Major Life Change – Big events in our lives affect every aspect of them, including our financials. Marriage, divorce, having a child, and buying or selling a home are just some major life events that could alter your filing status.

Mistakes Happen, As Do Audits

Mistakes can happen at any time, including when doing your taxes. If you aren’t a professional or well-informed, trying to do your own taxes can be overwhelming.   

Sometimes an innocent filing mistake can lead to serious consequences, like an audit, which is when you will definitely need the support of a certified public accountant.

Regardless if you recognized your own error after filing, or the IRS did, it can’t hurt to have an expert on your side when things seem their most difficult. A tax professional may even be able to catch a mistake made by the IRS, saving you time and money.

Keep More Money in Your Pocket

You might ask yourself, “How will spending additional money on a tax professional save money?” While it may seem contradictory, the advice of a tax pro can be an incredible financial boone to your situation.

Certified public accountants, such as those at Gonzalez & Arrambide, act as a microscope for your financial circumstances and analyze every aspect. This way, they can optimize the way you run your business, make investments, or perform other complex financial activities.

At the end of the year, you may be surprised to see that you’ve been over-paying and are now saving money thanks to the help of a professional!

Reach Out to the Top Rio Grande Valley Accountants Today

As you can see, there are a number of factors that can complicate your financial circumstances. That’s why the Weslaco CPAs at Gonzalez & Arrambide are here to lessen your financial burden, save you money, and strategize in time for tax season this year!

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More Tips on Preparation for Tax Season 2022 From the Top Weslaco Certified Public Accountants

More Tips on Preparation for Tax Season 2022 From the Top Weslaco Certified Public Accountants

As we get closer to Tax Day, the more important it is to make sure you’re prepared to file everything correctly. It’s common to have questions around this time of year, so we’ve organized some additional notes on being ready for tax time.

Your Rio Grande Valley CPAs at Gonzalez and Arrambide want to ensure you feel ready when Tax Day finally comes.

Make a Decision on Filing Yourself or With a Tax Preparer

Depending on your financial situation, you will want to decide between filing your taxes on your own or with a professional. There are a few factors at play when you determine the best course of action:

  • Do-It-Yourself Tax Filing – If you work a job that provides you with a W-2, don’t have any dependents, aren’t a homeowner, or your situation is overall uncomplicated, it is probably simpler and less expensive to file using a tax software.
  • Get the Help of a Professional – Say you own a business and need to file personal and business tax returns or you’re married, working two to three jobs, with several dependents. It may be less of a headache to seek out a CPA for their skilled help.

Whatever your tax situation, the accountants in Weslaco at Gonzalez & Arrambide offer a FREE consultation. They can help you decide what’s best for you!

Check and Adjust Your W-4 Withholding

For people who work a straightforward W-2 career, every January your employer will request a completed W-4 form. This document will determine how much is withheld from your paycheck, based on:

  • Overall Tax Situation
  • Household Status
  • Number of Dependents Claimed
  • Other Adjustments Like Additional Deductions or Income

You can see yourself if you’re withholding too much or too little by comparing two fiscal years’ returns. If the financial situation was overall the same, a large refund could mean withholding too much. However, if you owe the IRS money, not enough money may have been withheld.

Decide if Filing an Extension Is Right for You

“What happens if unexpected problems arise this month?” 

If you want to err on the side of caution, think about filing an extension, which, if approved, would give you until October 2022 to complete the tax filing process. Keep in mind that while filing the extension costs nothing, you could incur additional interest on what you owe.

Even if you’re fairly certain everything will go smoothly, an extension can never hurt as it allows for extra time to make sure everything is correct. To actually file the extension, you or your tax preparer will need to fill out IRS Form 4868. 

Get the Best Tax Advice from the Rio Grande Valley CPAs at Gonzalez & Arrambide

Regardless of your financial situation, it can be helpful and reassuring to seek the support of tax professionals. That’s why the Weslaco certified public accountants at Gonzalez & Arrambide offer a FREE consultation. We want to make sure you’re both knowledgeable about and ready for tax season!

Don’t stress over questions anymore! Contact the accountants in Weslaco at Gonzalez & Arrambide for a FREE consultation now!

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Why You Should Hire a VCFO in Weslaco for Your Company

Why You Should Hire a VCFO in Weslaco for Your Company

A vCFO, or Virtual Chief Financial Officer, performs the same duties as a full-time CFO. However, they do their work on a contractual, remote, and/or part-time basis. So, you may be asking yourself, “Why should I hire a vCFO instead of a standard, on-site Chief Financial Officer?”

The experts in tax procedure and bookkeeping at Gonzalez & Arrambide in Weslaco are vCFOs who want to help you understand exactly why you should obtain the services of one.

Fortify Your Financial Strategies With a vCFO’s Help

Undoubtedly, one of the leading benefits of hiring a vCFO to assist with your firm’s bookkeeping is that they have great decision-making skills. A large aspect of a vCFO’s duties is to deliver on strategic goals and financial outcomes that a company desires. 

Not only will you be able to reach greater heights as a company, but you will have a data-focused financial analyst who can effectively gauge your company’s potential. For example, vCFOs excel in financial risk management and cash flow forecasting, which means they can provide you with detailed reports of wise financial decisions to make in the future.

Save Your Business Time and Money

You may ask yourself, “Why not hire a full-time CFO instead of the virtual option?” 

A driving factor that makes the vCFO the more attractive option is money. Because they are full-time as opposed to contractual, CFOs require benefits, equity, and other aspects on top of a six-figure salary.

Additionally, you may have more work than you can handle but not enough to justify hiring a CFO. The freelance aspect of vCFOs allows you to both pay a lower amount and open up more of your schedule, ultimately saving you time and money.

Expertise That Grows Exponentially

Another fact that sets vCFOs apart from CFOs is the former’s deep knowledge of one or more niches, such as eCommerce or Digital Marketing. Whereas a standard CFO will mainly develop knowledge of just their own company, a vCFO works with various clients to gain a greater understanding of a variety of industries.

While your vCFO provides you peace of mind and handles your bookkeeping, they are simultaneously gathering expertise in other fields. This means that your potential plans for the future, whether they be expansion, acquisition, or even selling your business, will be seen through various lenses. 

In the end, your vCFO will have the knowledge and strategies necessary for you to make the best financial decisions.

Let vCFOs in Weslaco Help With Your Company’s Finances Today

The Weslaco virtual Chief Financial Officers at Gonzalez & Arrambide want you to understand the benefits of bringing a vCFO onboard. Let us not only save you time and money, but set you up for future opportunities not previously possible!

Now That You Know the Benefits of Hiring vCFOs in Weslaco, Call Gonzalez & Arrambide To Set Yourself up for Success!

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What is Cash Flow and How Can a Virtual Chief Financial Officer Help Improve it?

What is Cash Flow and How Can a Virtual Chief Financial Officer Help Improve it?

To run a successful business, you must have a solid cash flow. 

Understanding cash flow is key to prospering as a business owner. A virtual Chief Financial Officer (vCFO) can help you develop your business and triumph. Your vCFO will use several tools and strategies at their disposal, including cash flow reports, amongst other data sources, to create a strategic plan that helps grow your business.

The vCFOs at Gonzalez and Arrambide, Inc., can inform you about the financial information you need to make critical business decisions.

What Is a Cash Flow Report?

In short, cash flow is how much money is coming into your business and how much is going out. A cash flow report will summarize how your business is doing in this regard.

For example, more money coming in than going out will give a positive monthly cash flow result. If this monthly trend continues, you can expect to profit. It is possible to have a good cash flow result at the end of the year even if you were negative some months. 

It’s worth noting, however, that a cash flow report isn’t the same as an income report.

Who Creates a Cash Flow Report?

This report falls under the responsibility of a vCFO since it is per finances. While your accountant creates the income report to help you determine how much tax to pay, your vCFO will create a cash flow report to assist in determining when you are ready to grow your business and increase your future profits.

How Is a Cash Flow Report Used?

A cash flow report is useful for predicting future account balances. These forecasts are what allow strategic plans to be made. Your cash flow report will tell you when your business can operate with the extra costs that come with expanding without breaking the bank. 

By timing your growth correctly, your business will experience increased revenue with minimal risk.

Outsourcing to a Virtual CFO Can Improve Your Business’ Cash Flow

Owning a business can be extremely overwhelming and stressful, but by hiring a virtual Chief Financial Officer in Weslaco, you will be assisted with the financial services your business may need. By reaching out to Gonzalez and Arrambide, Inc., you’ll get the guidance you need to start or grow your business.

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Businesses in the RGV Should Know About These Taxes Before They Open Their Doors

Businesses in the RGV Should Know About These Taxes Before They Open Their Doors

There is a lot more to starting up a business than creating a product, drafting a business and marketing plan, and making a lot of revenue. The tax collector still needs to take their cut, and taxes–even outside of a business setting–can be complicated.

At Gonzalez & Arrambide, Inc. we want to help new entrepreneurs like you get up to speed on identifying what taxes may be applicable to their business by highlighting most of the ones that they may be responsible for paying down below.

Business Taxes in Texas 

In contrast with other states, the low business taxes and lack of personal income in Texas gives the Lone Star State two advantages over many other states:

  1. Businesses keep more of the revenue they generate.
  2. Top talent individuals are attracted to the lack of personal income tax.

This is even better for small businesses. With the business tax rate already being low as is, it shrinks or decreases to zero for businesses whose revenues don’t exceed particular thresholds.

For instance, smaller businesses with less than $1.18 million in receipts pay $0 in business taxes–known as the zero-tax threshold or no-tax-due threshold. Bigger businesses that have over $1.18 million to $10 million in receipts only pay around 0.375 percent, and if you’re a sole proprietor or in a general partnership, you are exempt from the franchise tax.

For startups and entrepreneurs, this can make the few early years a little less stressful.

It is, however, important to keep in mind that Texas refers to its tax on businesses as a franchise tax, but the state doesn’t have a corporate income tax. To clarify, the difference between corporate income taxes and franchise taxes is that corporate income taxes apply to profit while franchise taxes are basically a mandatory fee for companies who have the privilege of doing business in a city or state–usually determined by the capital held by or the net worth of the business organization.

S and C Corporation Taxes

The S Corporation is popular among small businesses. Texas still requires S corporations to pay its franchise tax depending on the business’s annual revenue. This tax can only be as high as 1 percent, and individual shareholders in the company aren’t obligated to cover state taxes on their portions of the company’s income.

This advantage offers benefits to small S corporations whose annual revenues don’t pass the zero-tax threshold. In a sense, they work tax-free since tax isn’t established on the business itself or on the individuals who gain money from the business.

As companies grow from LLCS to S corporations and then ultimately a C corporation, so too will they be responsible to pay franchise taxes where they will follow the same zero-tax threshold rules mentioned above.

Limited Liability Company Taxes

LLC is the other common choice for small businesses. In most states, LLCs are entities that provide protection to business owners from some legal liabilities but give their incomes to those owners, who take care of the personal income tax instead of business income tax on their proceeds.

With S corporations, however, Texas goes against the national trend and charges the franchise tax to LLCs, which applies to every business type. 

It is worth emphasizing that the income that goes to the owners as personal income isn’t imposed on state income tax in Texas.

Partnership and Sole Proprietorship Taxes

Most of Texas’ small businesses are partnerships that pay the franchise tax, whereas sole proprietorships don’t.

However, if a partnership is a business that is directly owned by individuals, meaning that the business income is distributed directly to them, partnerships and sole proprietorships are treated the same and aren’t charged the franchise tax.

The business owners are obligated to pay federal income tax on this income but not state tax, given that Texas doesn’t tax personal income.

Most partnerships in Texas, including LPs and LLPs, are assessed with the franchise tax.

The Virtual CFOs at Gonzalez & Arrambide are Available to Assist You

At Gonzalez & Arrambide, we offer our clients Virtual Chief Financial Officer (VCFO) services designed to help businesses manage their financial obligations efficiently without having the need of a full-time CFO, all at a reasonable rate that can save you a lot on startup costs.

Every dollar counts when it comes to running a business, and having an accurate report of your cash flow and how it is affected by taxes is crucial to staying afloat.

If you’re starting up a business, let us help you sort out all of the tax information and create a financial plan that is right for you.

Schedule a Consultation Now

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