How Accounting Helps You With Business Decisions | Best CPA Baton Rouge

Accounting and financial reports might seem complicated and time-consuming, but they are crucial to the success of your business. When it’s time to make big decisions, accounting data helps you choose the option that’ll help guide your business.

The following are five ways accounting helps you make decisions in your business. 

Loans for small businesses

Businesses, both new and established, may need to consider a business loan. A startup or an expansion of an existing business might require financial backing. So, how do you know if you need a business loan? It’s all about accounting.

Using accounting information, you can determine whether your company has enough money to fund its venture or if you need financing to do so. Lenders need your accounting information to determine whether you’re a good candidate for a loan. They need to know you can pay back what they lent you, plus interest. 

Your financial data enables creditors to make informed decisions about the amount of money you can borrow. A lender may refuse to extend you a loan if your accounting information is poor, if you lack money or collateral, or if you have already accumulated debt. Regardless, they need to look at your accounting records. 

For business loans, you’ll need the following documents:

  • Income statements
  • Statements of cash flow
  • Business tax returns
  • Balance sheets

Operating a business

By using accounting, you can make better decisions about your general day-to-day operations. Taking a look at your accounting information allows you to determine how efficient and effective your current procedures are. 

To check whether your financial statements are up-to-date, you can compare them with industry standards. If not, you can make the necessary changes to make your operations more efficient.

Your accounting information also shows how profitable your business is, meaning how much you make from the effort you put in (your return on investment). Having a lot of sales doesn’t mean your business makes a profit. When you have a ton of debt to pay off, it might cancel out the money you make from sales (your revenue). Accounting lets you know how well you’re using your assets (items of value to your business) to create your products or services. Accounting allows you to compare your cost of sales to your profit margin. 

Capital investments

In a limited company by shares, investors can buy shares of the company and receive a share of its profits (known as dividends). Potential investors use accounting to decide whether or not to invest in your company—or how much to invest. 

What are the ways investors use your accounting information? The purpose of this is to determine your company’s value and to perform a credit analysis to assess your ability to provide a fair return on investment. Accounting assists investors in making decisions by showing them your company’s financial health. 

As an example, an investor might ask to see your income statement to determine where your income comes from and if it’s consistent. Investors may invest in your company if you show a steady income. Accounting serves to show investors the potential profit and risk of investing in your business.

Creating a budget

Any business needs a budget to prevent overspending and wasting money on non-essential expenses. Additionally, you can use your budget to see where you have spent money in the past and determine if those expenses were necessary to provide your products and services.

Accounting data helps you make well-informed decisions about how to spend your money. When writing your budget, you should use accurate, complete, and current financial information. A CPA can assist you and answer questions like these.

What was your profit or loss last year?

Has the cost of sales gone up or down?

Are there any items on your website that don’t sell that you can remove?

Is it possible to replace items with anything that will be more profitable?

Among the documents you need for budgeting are:

  • Accounts receivable
  • Accounts payable
  • Beginning balances
  • Balance sheet
  • Profit and loss statements

Having these documents available will facilitate the decision-making process when writing your budget.

Marketing

To attract more clients or customers, businesses need to spread the word about what they offer. Both marketing and advertising are essential expenses for marketing your business. 

Accounting shows you how much you need to spend on marketing and advertising. It also shows you how much money you made from those campaigns. 

If you spend a certain amount on a paid ad campaign but don’t see a noticeable increase in traffic or sales, you might need to shift your focus. Alternatively, your campaign might have resulted in a big increase in sales, but the campaign cost more than the revenue increase. 

Accounting plays a critical role in helping businesses define and manage their financial health. Accounting is essential to making informed financial decisions about everything from marketing to business loans. Getting it right is essential! We are here to help you. Contact our accounting firm today to learn more.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Certified Public Accountant | 5 Qualities Your Next Accountant Should Have

CPA Near Me

The easiest way to gage how well your business is doing is to hire a professional accountant. However, not all accountants are the same, and you should know what you’re looking for before you trust your business to anyone. As you research your options, make sure your next accountant has these five qualities.

Informed

It may seem like a no brainer, but your accountant should be an expert in bookkeeping and accounting specific to your industry. Make sure they know the best options for your unique business and stay on top of related financial details and information. 

Organized

If you’ve tried to do your accounting yourself, you know just how quickly it can turn messy. Hire an accountant that knows how to clean up the mess and keep it that way. Not only will this allow you to reach your goals faster, but it will also help ensure your business is both efficient and compliant. 

Credible

Trust is one of the most important factors when deciding on an accountant. You are often putting your business, your finances, and your life in their hands. In this case, reputation means everything. Find out everything you can about the company and accountant before signing anything. Consider contacting professional references for testimonies.

Responsible

The devil is in the details, and one mistake could cost your business dearly. Discuss the ways that your accountant would avoid mistakes and stay familiar with your finances. You spend a lot of time familiarizing yourself with your clients, and an accountant needs to do the same with your business. 

Dedicated to You 

The top accountants understand that customer service is paramount. Your accountant should go above and beyond to help your business become successful. Our team knows this to be the case, and gives each of our clients the respect and dedication they deserve. Contact our accounting office today and see how a great accountant can help you.  

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

25 Interesting Facts About Taxes | Dental CPAs

Dental CPAs

1)     The word “Tax” comes from the Latin “Taxo” which means “I estimate”.

2)     The Federal tax code was 400 pages in 1913 – in 2010…it was 70,000 pages

3)     The number of words in “Atlas Shrugged” is 645,000. The Bible has approximately 700,000 words. The number of words in the Federal Tax Code is 3,700,000.

4)     While every person who earns a paycheck pays Federal Income Tax, only 43 of 50 states charge their citizens income tax. The states that do not have income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

5)     The IRS is a U.S. government agency that is responsible for collecting taxes and enforcing revenue laws. It is part of the U.S. Department of the Treasury.

6)     Over 1 million accountants are hired each year in America to help with taxes.

7)     In 1691, England taxed the number of windows on a house. As a result, people built houses with very few windows and even boarded up existing windows. This caused nationwide health issues due to lack of airflow and eventually ended in the tax being repealed in 1851.

8)     Emperor Peter the Great of Russia put a tax on beards in 1705.  He hoped this would encourage men to be clean shaved – a look that had become popular in Western Europe.

9)     The word “accountant” is from the French word “compter”, which means “to count or score”.

10)  England has a tax on television. Color TVs are taxed more than black-and-white TVs.  However, if a blind person has a television, he or she pays only half the tax.

11)  Disposable diapers are subject to sales tax in Wisconsin, but cloth diapers are not.

12)  In Texas, cowboy boots are exempt from sales tax.

13)  The Federal form 1040, was introduced in 1913. It was required of any U.S. permanent resident with a net income of $3,000 or more and was only three pages.

14)  Albert Einstein is quoted as saying: “The hardest thing in the world to understand is the income tax.”

15)  Alabama is the only state in the United States to have a playing card tax (10 cents). On the flip side, Nevada gives a free deck of cards with every tax return filed.

16)  The IRS provided approximately $416 billion in refunds in 2011.

17)  WWII led to the creation of the Bureau of Internal Revenue. This later became the IRS, which is the world’s largest accounting and tax-collection organization.

18)  One of the most significant relics of Egyptian history, the Rosetta stone, is actually a tax-related document. It was so important that it was written in three languages.

19)  According to some historians, plane geometry was actually invented by tax collectors and not Euclid (the famous Greek mathematician) in order to determine land size for harvest tax.

20)  In 1787, U.S. citizens could only vote if they were taxpayers.

21)  Newspapers use large sheets of paper because of the “knowledge tax”. In 1816 the British taxed newspapers per page, resulting in them using larger paper to add more content and shorten the number of pages.

22)  There is no known civilization that did not have taxes. The very first civilization, the Sumerians, recorded their tax records on clay cones.

23)  Since 2001, there have been more than 4,500 changes to the tax code.

24)  Taxpayers lose out on millions by not filing returns – tax payers gave up $950 million in refunds in 2012.

25)  More than one-fifth of paper tax returns contain an error.

 

Apple Guerin Company LLC
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808
(255) 767-1020

Dental CPAs | 5 Signs You NEED an Accountant

Have you wondered whether you actually need to have a professional accountant? Here are 5 signs that confirm you do:

1) You earn over $200,000 per year – Your odds of being audited once you start earning over $200,000 a year increases to nearly 4%. While this may not seem like a large number, it’s actually an increase of over 300%. Having your financials in order in case this does occur is vitally important once you become a high-earner.

2) You are a business owner or are self-employed – Utilizing the services of an accounting professional is vitally important for any business owner or entrepreneur. Tax laws change annually. The current US tax code has over 7 million words in it. Making sure all of your deductions are included, your assets are depreciating properly, and you are maximizing your tax savings will wind up saving you money in the long run.

3) You are setting money aside for others – When putting money aside for your children, grandchildren, or anyone you want to take care of, it’s very important to use a financial professional to decide which vehicles to use for tax-deferred or tax-free savings. This includes college savings plans or trusts.

4) You are incurring large capital gains tax – The key to success in paying big capital gains tax is paying at long-term rates. An accountant can help you with a Qualified Small Business Tax Credit, minimize your taxes, and help you set long-term payment goals.

5) You are experiencing rapid growth in your business – Not only is keeping your finances up to date time-consuming, it’s also complicated. When you’re experiencing rapid growth, it’s time to call in an accounting professional. Having more customers, employees, and vendors is going to require more paperwork and number crunching and can rapidly become impossible for you to manage.

Apple Guerin Company LLC
6421 Perkins Road, Bldg. A, Ste. 1B, Baton Rouge, LA 70808
(255) 767-1020

Dental CPAs | We Visited the University of Mississippi School of Dentistry

AG Dental CPAs and Advisors visited the University of Mississippi School of Dentistry April 23, 2018, for a lunch-n-learn with the 2018 graduating class. Along with an introductory presentation on taxes, AG Dental’s Jude Guerin and Robby Apple were able to answer questions about the new 2018 tax reform laws. As a way to thank our attendees, AG Dental held a drawing to give away a new Yeti Hopper 30 cooler to one lucky student!

Best of luck to all soon-to-be graduates!

Data Security Best Practices

Baton Rouge Dental CPA
Baton Rouge LA Dental CPA

Though most of the attacks making headlines are those aimed at large organizations or political groups, roughly a third of all data security breaches in the last few years have occurred in the health care industry. Of these, employee error caused three times as many breaches as external attacks. In addition, more than half of the businesses who experience a security breach have fewer than 1,000 employees.

The Health Insurance Portability and Accountability Act (HIPAA) requires all health care providers to take steps to protect the private information of their patients from hackers, thieves, and staff. While no data security system is foolproof, there are some best practices that can help to decrease your risk of an information breach, especially from employee error. Here are some of the best practices you should be enforcing:

  • All computers should be placed where screens are not visible to patients or visitors.
  • Every computer should have an encrypted password for access.
  • All passwords should contain a mixture of letters, numbers, and/or symbols and should be changed regularly.
  • Passwords should never be written down in any place accessible by the public. It is preferable that they not be written down at all.
  • Every staff member must be fully educated about the importance of data security practices, their responsibility to follow these practices, and the potential repercussions for failing to comply.
  • Office computers and internet should not be used to check personal email or visit non-work-related websites.
  • Ensure all firewalls, software, and operating systems are kept up to date.
  • Wireless networks should be shielded from public view.
  • Every computer should have antivirus software installed and kept up to date.
  • Do not access office data remotely from a shared computer or unknown WiFi network.
  • Smartphones, tablets, laptops that have access to any work systems or emails should be password protected in case lost or stolen.
  • All hard copies of patient data should be shredded.
  • All transmitted data should be encrypted.
  • Sensitive information, such as social security numbers, financial data, or other private information, should never be sent through email or instant messaging services.
  • Consider purchasing cyber insurance protection.
  • If a breach does occur, take appropriate action immediately. Contact your legal counsel for advice.

Your first and best defense against the theft of sensitive patient information is the integration of data security best practices into your practice policies. Meet with your team to discuss any changes you need to make and your expectations of compliance. Protect yourself, your team, and your patients by working to protect the integrity of your systems.

Dental CPA | Claim Financial Freedom

Whether you’re starting a new practice or have been an owner dentist for years, the financial stress that can come from being a business owner can sometimes overwhelm even the most seasoned professionals. Our goal is to help you achieve complete financial freedom so that financial worries don’t interfere with your ability to work well.

Below are some tips you can follow on your own to help build a rock-solid foundation for your practice. Staying organized and up-to-date with your financials allows you to focus on delivering quality care to your patients. Contact our firm today to learn how we can help!

Have a plan. As the popular saying goes, “failing to plan is planning to fail.” In order to see true success, you’ll need to have both short and long-term plans for your practice. How will you allocate new earnings? How is your practice prepared to deal with slow seasons? How are you budgeting for new purchases? If you don’t already have answers to these questions, they could be a great place to start. Planning for the unexpected can help safeguard your profitability from being derailed by unforeseen expenses.

Set goals. Don’t be afraid to dream big. Your practice will only be as successful as you make it. Setting goals allows you to have a clear yardstick to measure your success against and can help you make better financial choices in the present. By recognizing the simple truth that every small decision you make now can have a huge impact on the future, you’ll be able to start setting yourself up for success. Your future self with thank you.

Be Smart. When starting or growing your business, there can be benefits to taking on strategic debt. However, doing so in a manner that will benefit, rather than hinder your growth requires an understanding of the returns you can expect on your investment. Don’t jump into big purchases without a plan, rather weigh the potential benefits and risks of all your financial decisions.

Get Organized. Disorganization can be a killer for any business. In order to ensure you’re not letting anything important slip through the cracks, it’s important to have systems in place that will guarantee nothing is missed. In addition to protecting you from unforeseen troubles, efficient organization can also help bring opportunities for improvement to light. Whether it’s money that could be saved or resources that could be conserved, understanding the ins and outs of your financials can help you to understand exactly how your money is being used.

If you feel that you could improve in any of these areas, our firm is here to help! Our goal is to make the process of managing and running your practice as simple as possible, allowing you to focus on delivering quality work to your patients and growing your business. Contact us today to learn more.

Apple Guerin Company LLC
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808
(255) 767-1020

Accountant Near Me | Guide to Getting Your Finances in Order

Accountant in Baton Rouge

Baton Rouge Dental CPAMany Americans live paycheck to paycheck. It can be a heart wrenching experience not being able to provide necessities for you loved ones. Americans are swinging in debt with many at no fault of their own. Financial hardships can pop up as fast as the next corner Starbucks. Or some people just overextend themselves. Our society is based upon consumption. Everyday we are blasted with advertisements for objects we are told we want. There’s a new smart phone every year, watches to go with that new phone, expensive sneakers, high-end headphones – these products boost our self-esteem. Make us feel high on the social latter. Buying even can just make us feel good.

Whether you are struck with a financial emergency or overextended yourself there are ways to get back on track. It takes sacrifice but the reward of not worrying about money is well worth it. Here’s a guide to getting back to financial freedom.

Know Your Debt

It easy to just no think about debt. Knowing what you owe and laying it all out is important. Look at it this way, this is the first step to financial freedom – and a lot less stress.

Time for a Budget

Once you know how much debt you have, compare it to what you bring in. After subtracting monthly bill payments how much is remaining? At this point think about how much you are spending on necessary and unnecessary items. Now, look at your bank and credit card statements to see what you are really spending. It may shock you!

Creating a budget spreadsheet is a great way to keep track of spending and keep on task. You will want to include the following items.

  • Net income – your final take home pay after deductions
  • Fixed expenses – these may include rent/mortgage, car payment, and utilities. Regular monthly bills fall into this category.
  • Variable expenses – expenditures which change month to month including but not limited to entertainment, groceries, gas, and clothing.

Reviewing your monthly spending will help you know which expenses can be cut. This will be a difficult process but humans are adaptable. This will not be forever. Don’t be discouraged!

Goals

What are your financial goals? Make a list of short and long-term goals. Reducing or eliminating credit card debt would be a good short-term goal. Saving for your child’s education or your own retirement would be a long-term goal. Remember, some goals may take years to accomplish – in the end it’s worth every penny!

Make a Plan

Review your budget, know your debt, set realistic goals, and then start planning. Your plan should reflect the goals you made and how you will achieve them. Sometimes planning is a task you can tackle on your own. However, depending on your debt to income ration you may need to reach out to a financial planner. There’s no shame in it. In fact, most people should. If you are unable to afford a planner, find yourself a mentor. A friend or relative you can talk to is a great idea.

Helpful Tips

  • Use a savings account – money just sitting in your checking accounting is not gaining interest.
  • Auto-pay your bills – this will help to keep you on track and not get charged late fees.
  • Contribute to your 401K – if you company has one you should do it as most companies match contributions up to a certain percentage. That’s free money.
  • Check your credit score – there are many ways to see your score for free and without hurting your credit. This is a good way to see how your debt is affecting your score and to check for any fraudulent activities.
  • Have emergency savings – once you are back on your feet it’s necessary to have a small amount of money set aside for the unexpected.
  • Adjust your habits – always think before you spend as this is the most helpful advice of all.

Following your plan and stay on target! Please contact us for advice!

Dental CPAs 70808 | Strategies to Boost Profitability

Dental CPAs in Baton Rouge, LA

According to Dr. Charles Blair, DDS, most dental practices are losing between $30,000 and $50,000 in potential profits. How can dental practices maximize return on their services and start to recoup capital? Here are three strategies to boost profits in your practice:

Optimize your Practice

Taking a look at production reports to make sure procedures were coded correctly. This may seem fundamental, but it can save a lot of time and money in the long run. One incorrectly charged procedure can increase costs over the course of a year.

In addition, adding high-dollar procedures to your practice such as endodontics, bleaching, and other cosmetic services can greatly boost your profit. Training dental hygienists in more complex procedures, such as soft-tissue management and bleaching, will also maximize a dental practices’ profitability.

Staff your Practice Well

In order to recruit and hire the best possible candidates, it is worth paying above average wages to experienced people in the field. This avoids employee turnover, which can become costly. A friendly and knowledgeable team will also help with patient retention rates.

Facilities and Equipment

If possible, purchase all your dental and office equipment, rather than leasing it. This avoids a number of issues, including higher retail costs, interest payments, hidden fees, and lease-breaking penalties.

Strive to maximize your office space. If your current patient volume doesn’t allow you to use all your offices, consider subletting either your primary or secondary office space. Also, merging your office with another dentist can help you in fully utilizing your space and also reduces overhead costs.

There are a variety of ways to boost profits and cut costs while owning a practice. To start, think about your services, staff, and office space. Opening a practice can be costly and leave many dentists in debt, especially after finishing school. Contact us today for help on managing your budget and ways to maximize your return on investment.

6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808
(255) 767-1020

Accountants Baton Rouge | 4 Questions to Ask Yourself Before Retiring

Baton Rouge CPAs

Whether you have been working for a few years or a few decades, it is important to plan for your retirement. However, many people have never created a plan for retirement based on income and lifestyle. Here are four questions to ask yourself while thinking about whether or not you can comfortably retire on time:

  1.     What do you plan to do during retirement?

If you are planning to travel and visit family members more frequently, this will increase your expenses. Embracing a new hobby may also raise expenses compared to your working years.

  1.     What expenses will change?

Your commute, work clothes, and business lunches may stop, but you may have higher costs for medical care and prescriptions. Speak with us about the type of changes your budget will face during retirement.

  1.     How much are you currently saving?

When you meet with our financial planner, you will review the details of your current retirement savings plans and how your portfolio is performing. During retirement, it may be beneficial to continue some of your investments to help your savings outpace inflation.

  1.     Do you have a withdrawal strategy?

If you are an owner or partner in your business, is there a written agreement for buying you out when you retire? Do you plan to transition by working part time for a while or should you stop all at once? How are your retirement savings affected by taxes? All these questions should be a part of your strategic plan for retirement.

Don’t wait to plan ahead. What you do with your money now can significantly impact your life in the future. Our financial planning expert can guide you through the details of your retirement process.

For more information on planning for your retirement, contact our office and schedule a consultation.