IT'S NOT BRAGGING IF YOU CAN DO IT.
Case Study : Inventory
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Problem – Inventory was negative and Cost of Goods Sold was greater than it should have been.
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Process – Determine what the issue was, was it a system issue, was it a user error, was it an input issue?
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Solution – Determined it was an input issue. Discussed the best possible option for counts, reconciliation, and input into the system.
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Results – We determined what needed to be counted, made the counts, recounts and discussed which items were okay to be so significantly different. Now their books are correct and give an adequate sense of where the company is financially.
Tax Strategies
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Problem – Husband and Wife both had amazing years for their business. At the end of the year, there was significant taxable income which was going to cause them to pay a significant amount of taxes.
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Process – We took their taxable income and projected income for the remainder of the year and ran it through 28 proven tax strategies.
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Solution – We used 4 different tax strategies, Elected the wife’s business as an S-Corp and gave her a salary, formed a Family Management Company to Retain Earnings and be taxed at 21% instead of 32%, Hired their 2 kids for work they have performed for each of the companies, and applied the Augusta Rule for their businesses to rent their home up to 14 days.
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Results – We were able to save them $61k which allowed them to take the money and buy 2 rental homes for passive income.
Employee Retention Credit
Entity #1
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Problem – During the pandemic, multiple businesses around the world lost a significant amount of revenue. Due to this the Government put into place a significant credit for employers who retained their employees during these times.
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Process – Reviewed entities revenue from 2019 to 2021 to determine if a significant decline in revenue was reached.
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Solution – Determined there was a significant decline in revenue from the 2nd Quarter 2020 in comparison to 2019. Client never reached 80% of their 2019 revenue so we would be able to amend all returns which would generate a refund.
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Results – Entity received $226k+. We evaluated their payroll per the regulations and were able to amend 4 of their Form 941’s to request the refund.
Entity #2
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Problem – During the pandemic, multiple businesses around the world lost a significant amount of revenue. Due to this the Government put into place a significant credit for employers who retained their employees during these times.
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Process – Entity revenue was not able to factor into their situation for this home health care/hospice entity. So, we reviewed government mandates for both federal and state to determine if they had received a mandate to close any portion of their business.
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Solution – Determined there was a state mandate which prohibited them from caring for their patients in nursing homes. Due to this restriction they lost a portion of their business due to this mandate.
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Results – Entity has requested a refund of $84k across four of their entities as it was determined they lost a significant portion of their business due to a government mandate. Due to common control, since 2 of his entities were mandated by the government to lose a portion of their business the other 2 were allowed to take the credit as well.