Red Bike Advisors

Profit First Step 1: Assign a profit margin appropriate for your industry and business size. Profit First Step 2: Allocate your forecasted revenue across profit and your expense categories. Profit First Step 3: When the numbers don't work, don't cut the profit. Cut the expenses. https://lnkd.in/evM6YugY #profitfirst #smallbusiness #budgeting #businessfinance

You know what they say: It's not IF the IRS will catch up to you, it's WHEN. IF or WHEN you get a scary notice, we've got your back. A client of Red Bike Advisors received a balance due notice from the IRS that, with penalties and interest, amounted to nearly $352,000. We prepared a response and were able to reduce the tax bill down to just $3,500. https://lnkd.in/ej43Z9sq #taxnotice #irs #taxresolution #taxcontroversy

At Red Bike Advisors, we’re more than accountants—we’re your tax and accounting copilots. Meet Chasity Van Hooser, Bookkeper, who works with small business owners to make sure their books are clean and up-to-date so they can make informed decisions and make tax season a little less painful! “I’m here for my clients. It is my job to help take away the stress of managing their everyday books. Having clean, organized, books is the foundation for any successful business. Helping a client to understand where they are at the present can open up so many possibilities for the future.” 🚴♂️ https://lnkd.in/eBRVGmCR 🚴♂️ #MeetTheTeam #BehindTheScenes #accounting #bookkeeping #smallbusiness

💡 S Corporation Income Tax Treatment 101 💡 - Tips from Adam Shay, CPA, MBA, Director of Advisory & VCFO Services When it comes to income tax planning, S Corporation income tax treatment is one of the lowest hanging fruits 🍎 . It often helps reduce the amount of income subject to 15.3% Social Security and Medicare tax. However, there are downsides and I’ve come across situations where I’ve seen it used but shouldn’t have been. 👍 When Does S Corporation Income Tax Treatment Generally Makes Sense? 1. You expect $100K or more in business profits (prior to any owner compensation or draws). 2. You are willing to be committed to the business owners taking a reasonable salary. Don’t spitball- use a professional like us. We utilize a methodology to calculate and to be defensible. 🙁 When Does It Not Make as Much Sense? 1. When you are just starting out and expect no to little business profit. If the business has only one owner, you’ll add unnecessary compliance costs. For this reason, I generally like LLCs for sole owners as they offer flexibility to be disregarded entities and an S Corporation election can be made in a future tax year. 2. You have more than one owner and want to take uneven distributions. While there are potential ways to achieve the goal uneven distribution there is a rule that owners have to take distributions proportionate to their % ownership in the business. 3. You are taking equity investors and targeting an exit that may qualify for the Qualifying Small Business Stock Capital Gain exclusion. 💲 Other Things to Keep in Mind 🧠 for S Corporation Income Tax Treatment 1. Don’t hold appreciable assets in an S Corporation. If you own real estate that is being utilized by the S Corporation, hold it in a separate entity and charge reasonable rent. 2. 👉 A reminder from above, take your reasonable salary. 👈

Your business probably needs a 'Marie Kondo' moment – yes, we're talking about cleaning up your financials. (I mean, when was the last time your monthly financial reporting sparked actual joy?) Ready to declare war on messy financials? Book a free strategy session and let's get your books clean, clear, and ready to help you rock your goals this year. https://lnkd.in/eXEdN5f4 #accounting #bookkeeping #smallbusiness #finance

"Do you know what your biggest business expense is? For most services businesses, it's your people. Yet many business owners throw salaries into a general ""wages and benefits"" bucket and don't have a clue what their real gross margin is. We recommend moving wages and burden (ancillary costs like insurance, retirement, incentive) of service producers to Cost of Goods (Cost of Services) so you can truly understand your gross margin. Why is gross margin important? You should be able to benchmark against others in your industry to see if you're A) Charging enough B) Paying the right amount to staff C) Producing efficiently For example, if you own a marketing agency and your gross margin is 40%, and industry standard is between 40-60%, you're on the low end. Getting to 50 or 50% will push 10-20% more profit down to the bottom line, which means you can reinvest in the business or pocket some extra cash. We track gross margin by department to understand profitability by service line, and it opens up completely different strategies for growth and efficiency gains at a more granular level. Do you bucket wages into COGS? Why or why not? https://lnkd.in/eh_bT5m7 #smallbusiness #grossmargin #costofgoods #costofservice #businessfinance"

Will ChatGPT Do My Taxes Next Year? https://lnkd.in/eBgXsvun

At Red Bike Advisors, we’re more than accountants—we’re your tax and accounting copilots. Meet Robin Soto, Office Manager, who wears aaaalllll the hats to provide support, structure, and of course, SNACKS, to our team and clients. From invoicing to coffee-making to maintaining order amidst hundreds of projects and clients, Robin has a rare gift for delivering exceptional service. “I love what I do and am definitely doing what I love! My team and our clients are what motivate me to come to work every day. Knowing I can help someone, somehow is true gratification!” 🚴♂️ https://lnkd.in/egJ2gX58 🚴♂️ #MeetTheTeam #BehindTheScenes #accounting #bookkeeping #smallbusiness #tax

"As an entrepreneur, my job is problem-solving on a good day, and crisis management on a bad one. There is literally no such thing as a day in business with no problems at all." -- Andy Frisella, Entrepreneur and Business Owner How's your day going so far? https://lnkd.in/d9FDF_y6 #smallbusiness #entrepreneur

Everyone's talking about all the Baby Boomers who are retiring and selling their businesses...now business broker Clint Fiore is saying maybe not so fast. His #3 reason the SMB "Silver Tsunami" hasn't happened? "Boomers suck at preparing their books." Terrible records, missing profits, and wacked-out balance sheets means neither buyers nor their lenders want to risk it. "Today's buyers want to borrow and leverage SBA loans and if the business can't easily pass underwriting with its historical tax returns, they're VERY hard to sell." Clint says. The solution? Clean you your books. We can help. https://lnkd.in/eBMvCx4N Thanks to Codie A. Sanchez for highlighting this in her Boring Business Brief newsletter: https://lnkd.in/eTr9-QG7 #smallbusiness #bookkeeping #accounting #M&A