Case Study 1
How Stepanchuk CPA Increased After-Tax Cash Flow by $93,147 and Boosted Bottom Line Revenue
Overview of Brand
- Imagine you're a small business owner.
- You work hard to keep your finances in order, but managing finances can be tricky and stressful.
- That's where Stepanchuk CPA comes in.
- We recently had the pleasure of working with a New-York based Marketing and Advertising agency.
- And we're thrilled to share the results of our partnership.
- Our unique tax preparation, budgeting, and planning strategies helped this brand increase its after-tax cash flow by $93,147.
- We helped them increase their bottom-line revenue and improve their accounting system.
- But how did we do it? Read on to find out!
Main Objectives
- Enhance the small business brand's cash flow
- Maximize tax savings for the brand
- Provide them with updated information on state and local tax laws
- Overhaul the business accounting system for improved efficiency and productivity.
Challenges
- Difficulty in maintaining a steady cash flow
- Inadequate knowledge of state and local tax laws
- Lack of retirement planning and health insurance options may affect employee retention.
- Uncertainty around entity classification, which could lead to potential legal and tax issues
- Difficulty in maximizing expenses and deductions, resulting in higher tax liabilities
Solutions and Strategies provided by Stepanchuk CPA
Here are some of the major issues faced by the business we worked with, and how we provided solutions
Challenge-1
Difficulty in maintaining a steady cash flow.
Solution
They struggle to maintain cash flow due to poor accounting and payment method.
We suggested changes to their invoicing and payment processes to help them stay on top of cash flow.
Challenge-2
Inadequate knowledge of state and local tax laws.
Solution
Due to the lack of awareness of state and local tax laws, the firm was missing out on potential tax savings.
We informed and guided them on taking advantage of opportunities on the state and local level that saved the company additional money on taxes.
Challenge-3
Lack of retirement planning and health insurance options.
Solution
Our retirement plan and health insurance increased employee retention and made the company more attractive to more senior hires, which increased company capacity and its earning opportunity.
Challenge-4
Uncertainty around entity classification.
Solution
We helped the business to choose the legal and tax structure that maximises tax savings and helps avoid legal issues.
Challenge-5
No strategy around maximising expenses and deductions, resulting in higher taxes.
Solution
To save money on taxes, our team advised on how to maximise tax deductions and receive tax credits small businesses are entitled to.
Challenge-6
Working in multiple states and localities and how that affects tax compliance with state and local tax nexus.
Solution
We helped the business understand their state and local tax obligations and recommended states and localities that could produce the highest tax savings.
Result with us
When it comes to running a small business, every dollar counts.
By focusing on various aspects such as
- Retirement planning.
- Health Insurance.
- Entity Classification.
- Legal Loopholes
- Maximizing Expenses/Deductions
- State and Local Tax Laws Update
- State and Local Tax Nexus
We were able to help our client achieve great results.
- After two years of working with our CPA firm, the client's after-tax cash flow increased by $93,147.
- They chose it to invest in revamping their accounting system.
- Thanks to our efforts to overhaul their A/R and A/P strategies and set up proper accounting systems.
- Now, the client no longer has issues with cash flow due to invoicing and A/P policy.
- Again, in the 2nd year, we added another tax deduction that resulted in an extra $4,500 in tax savings for the client.
- Our strategies and attention to detail made a difference for this small business, and we're proud to have played a part in their success.