Financial Solution Advisors

📢 Attention small business owners: Major tax changes are coming! The tax credits from the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025 (unless Congress acts). Changes to the 20% pass-through deduction, bonus depreciation, and corporate tax rates could impact your bottom line. 💡 What can you do now? ✔️ Maximize current tax credits before they sunset ✔️ Consult your tax advisor to plan for potential tax hikes ✔️ Stay informed about legislative updates Don’t wait until it’s too late—let us help you start preparing your business today!

Our office will be closed on Tuesday, January 7th, as we conduct our annual tax season kickoff meeting. On this year's agenda— 💥Launching our new client portal, Canopy 💥Reviewing critical tax updates for the 2024 season 💥Collaborating with all of our remote and local employees under one roof 💥Moving together with our annual step challenge We will return on Wednesday, January 8th, energized and ready to serve you!

💡 Our top tip to make inventory management a breeze: AUTOMATE IT! If your inventory management processes consist of manually recording inventory in Excel, you could be exposing the business to unnecessary risk and wasted time. Adopting a cloud-basedinventory management solution: ✔️ Reduces the risk of human error ✔️ Provides real-time insights into your business’ inventory data ✔️ Reduces the frequency of manual inventory counts, saving valuable time ✔️ Provides valuable data on the profitability of products, timelines, and more If you’re unsure where to start, or which inventory management solution is best for your business,send us a message. We can discuss your business, current processes, and goals to develop the right strategy for your inventory.

Wishing you a joyful New Year from all of us at Financial Solution Advisors! 🎉 May this new year bring you prosperity, happiness, and new opportunities. Thank you for being a valued part of our journey. Here's to a fantastic year ahead!

Wondering how to minimize RMDs and make your income tax-efficient? Here’s a breakdown of six strategies you might consider to manage RMDs and reduce your tax burden. 1️⃣ Qualified Charitable Distributions (QCDs) Redirect RMDs directly to a charity to reduce your taxable income. 2️⃣ Maximize withholding on RMDs Use 100% tax withholding on RMDs to simplify tax planning and potentially eliminate quarterly estimated tax payments. 3️⃣ Convert funds in traditional IRAs to a Roth IRA Avoid future RMDs by converting traditional IRAs to Roth IRAs. Consult your advisor before making any moves, however—the conversion creates taxable income in the conversion year. 4️⃣ Withdraw in a low-income year Take larger withdrawals in a low-income year to pay lower tax rates and reinvest in taxable or tax-free accounts. 5️⃣ Keep working to avoid 401(k) RMDs Stay employed with the 401(k) provider to defer RMDs, provided you own less than 5% of the company. 6️⃣ Use a Qualified Longevity Annuity Contract (QLAC) Invest up to $200,000 from an IRA into a QLAC to defer RMDs until age 85 and lower taxable income. FINAL TIP: Alwaysconsult a tax advisorbefore taking action to ensure your strategy aligns with current IRS rules and your long-term financial goals. The experienced team at Financial Solution Advisors has been helping clients with financial and retirement planning for over 40 years, andwe’d love to hear from you.

Here’s a quick rundown of common tax deductions and strategies every self-employed person should know: 1️⃣ Vehicle expenses Deduct costs for using your car for business purposes, whether you choose the standard mileage rate or actual expenses. 2️⃣ Health insurance premiums Claim premiums for yourself, your spouse, and dependents if no employer-sponsored health insurance is available. 3️⃣ Special Social Security tax Self-employed individuals can deduct half of the 15.3% self-employment tax on their income taxes. 4️⃣ Retirement tax credits and shelters Leverage plans like SEP IRAs or solo 401(k)s to grow your retirement savings tax-efficiently. 5️⃣ Qualified business income deduction (QBI) Deduct up to 20% of your QBI if you meet the IRS rules for pass-through entities or sole proprietorships. 6️⃣ Expensing and depreciation Choose to expense or depreciate qualifying business equipment to maximize deductions based on your business needs. 📥 Pro Tip: Download our Small Business Tax Deductions Guide for more in-depth insights and examples: https://lnkd.in/gKdxDDUi

Wishing you a Merry Christmas from the Financial Solution Advisors family! 🎄 May your holiday season be filled with joy and blessings as you spend precious time with loved ones. Enjoy all the things that bring you happiness!

Every year, the IRS sets new limits on how much you (and your employer) can contribute to different types of retirement plans. Here are the 2025 retirement savings plan contribution limits at a glance: ⬆️ 401(k) employee contribution: $23,500, with $7,500 catch-up ⬆️ Total combined contribution limit (employer and employee contributions to 401(k)): $70,000 ⬆️ IRA: $7,000, with $1,000 catch-up ⬆️ SIMPLE: $16,600, with $3,500 catch-up ⬆️ Employees aged 60, 61, 62 and 63 have an increased catch-up amount of $11,250 It’s advisable to understand the annual IRS updates or consult a financial advisor to ensure your retirement strategy aligns with the current contribution limits and maximizes your savings potential and nest egg.We're here to help!

Getting your business financials into shape for a merger, sale, or acquisition requires more than just tidy records. You’ll need to provide a transparent and accurate reflection of your company’s financial position, including historical performance and future projections. Here are the main areas you’ll need to focus on: 1️⃣ Separate business and personal expenses Keep personal and business expenses completely separate to avoid confusion and present a clear financial picture for buyers. 2️⃣ Correctly categorize assets and expenses Ensure accurate classification of assets and expenses to avoid distorting your financial statements and reducing your company’s perceived value. 3️⃣ Match revenue and expenses to the right period Use accrual accounting to match revenue and expenses to the correct periods, ensuring accurate financial reporting for potential buyers. 4️⃣ Track income and cost of goods sold (COGS) Implement a reliable system to accurately track income and COGS, as gross margin is crucial for evaluating profitability and company value. 5️⃣ Evaluate how the owner is paid Ensure owner compensation is reasonable and compliant with tax rules, as excessive or improper payments can raise concerns during a sale. 6️⃣ Analyze key financial ratios Review and adjust key financial ratios to improve operational efficiency and profitability before negotiating with potential buyers. At Financial Solution Advisors, we offer outsourced CFO services designed to meet the needs of companies of all sizes. Whether you’re just starting to think about selling or already preparing for negotiations, we’re here to help. Contact us to schedule a consultation.

TAKE NOTE: Changes to QuickBooks 1099 Form delivery starting January 2025 Beginning in January 2025 (for the 2024 tax year), QuickBooks will no longer include the printing and mailing of 1099 forms in the subscription for QuickBooks Online Payroll and QuickBooks Contractor Payments. Here’s what’s changing: 🆕 QuickBooks will now charge $4 per form to print and mail 1099s to vendors and contractors 🆕 QuickBooks will continue to e-file 1099s and provide electronic copies to recipients as part of your subscription What this means for you: Let us know if you would still like physical copies of your 1099 forms. Remember, QuickBooks will still e-file 1099s and provide electronic copies.