Case Study 2

How Tax Strategies boosted a design agency Bottom Line and saved $42,452/year

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Story of Brand

  • A New York based design agency recently approached us as they were facing tax issues.
  • They were having financial challenges, did not know what tax deductions their business was entitled to and had difficulties navigating complex tax laws.
  • That's when they called Stepanchuk CPA for help.
  • With years of experience helping small businesses, we knew what to do to help them turn things around.
  • In this case study, we'll take a closer look at how we were able to improve this small business's financial health and drastically reduce taxes they paid, both on the business and personal returns.
  • Join us as we explore this inspiring success story.
  • Learn how our firm can help you in transforming the financial health of your business.

Main Objectives

  • Identifying ways to save money for the business
  • Maximising deductions and utilising tax strategies to reduce tax liability
  • Implementing retirement planning and insurance strategies to provide financial security and reduce tax liability
  • Analysing and optimising entity classification for the ideal business setup
  • Identifying legal loopholes to save money
  • Staying up to date on state and local tax laws to ensure compliance and additional write-offs

Challenges

  • Difficulty in identifying and implementing strategies to save money for the business
  • Missed opportunities for deductions and tax savings due to lack of knowledge of complex tax laws
  • Lack of retirement and insurance planning leaves businesses vulnerable to financial insecurity.
  • Uncertainty surrounding entity classification and the best structure for the business
  • Inability to identify legal loopholes to reduce costs & increase revenue
  • Maintaining compliance with ever-changing state and local tax laws and regulations.

Solutions and Strategies provided by Stepanchuk CPA

The Design agency was facing many financial challenges, huge part of which was a high tax bill that the business and the owners had to come up with every year. They felt that all their money was going away for taxes. The more money they made, the more taxes they paid. They were starting to feel desperate. 

We provided innovative solutions to these challenges to help the business thrive.

Challenge-1

Difficulty in identifying and implementing strategies to save money.

Solution

We help them save $42,452 per year by implementing cost-saving strategies.
We optimised the business's financial resources and reduced unnecessary expenses.
Our guidance in expense management, budgeting, and cash flow analysis brought great results.

Challenge-2

Limited knowledge and understanding of tax laws and regulations.

Solution

We executed 6 tax planning strategies, resulting in more deductions and tax savings they could never imagine before.
Our tax planning and preparation guidance ensured compliance with tax laws and regulations.
We did it all while maximising tax benefits for the business.

Challenge-3

Lack of retirement planning and insurance strategies.
 

Solution

We helped them with retirement plans and chose the ideal insurance options.
Also, we assisted with implementation to ensure financial security for the future.
We did it by getting the right plans in place while reducing costs and maximising coverage.

Challenge-4

Uncertainty surrounding entity classification and the best structure for the business.

Solution

Our team identifies the best entity classification based on their specific needs.
We guided them through the pros and cons of each structure so that they could make informed decisions.

Challenge-5

Inability to identify legal loopholes to reduce costs & increase revenue.

Solution

Our team pointed out and leveraged legal loopholes to reduce costs.
It delivered massive results and increased their after-tax net profits.
We provided expert advice on contract negotiations, lease agreements, and other legal matters with the help of the professionals we have in our network.
All these ensured the business took the advantage of every opportunity and made the most of it.

Challenge-6

Maintaining compliance with ever-changing state and local tax laws and regulations.

Solution

As state and local tax laws changed, we informed them of those changes on a regular basis.
We offered expert guidance and support to businesses on regular compliance reviews.
It helped them to identify any potential issues and develop customised solutions.
Our approach ensures minimising the risk of penalties, audits and legal issues.

Result within a year

It has been a year since the Design agency applied all the changes suggested by Stepanchuk CPA.

We were able to help our client achieve great results.

  • We are happy to report that the company has not only navigated the challenges but scaled its growth too.
  • Stepanchuk CPA's strategies have a significant impact on the company's finances.
  • This increase in savings gave the business the ability to reinvest in its operations.
  • They can also now concentrate on meeting their growth objectives.

Stepanchuk CPA: The Key to Unlocking Financial Success for Design Industry Business

  • Stepanchuk CPA's strategies transformed the Design agency's finances completely.
  • The business saved $42,452 by streamlining processes and implementing tax strategies.
  • This case study shows how a CPA firm can help businesses handle complex financial issues.
  • We hope this case study serves as a valuable lesson for businesses to focus on their finances.
  • They can also seek the help of qualified professionals to help them achieve their tax goals.