These Real Examples Illustrate Some of The Ways Straight Talk CPAs Has Helped New Jersey Business Owners
Case #1. 7 Figure Landscaping company, Monmouth County, NJ
“You’ve Got Questions? We’ve Got Answers!”
This company had been in business for 12 years. Revenues had grown steadily but net profits remained stagnant for the past 3 years. Employee turnover and customer attrition was high. The day to day running of the business was becoming a big headache. The business owner was wearing many hats and that was leading to burnout.
It was time to get the house in order. The business had added several new services and had hired a number of new employees to perform the services but without the right systems in place. The business was operating very inconsistently. The owner of the business had become the most senior employee rather than the visionary, the driving force of the business. Salim Omar, CPA met with the owner to bring back clarity on the “big picture” of this business. The big picture was crystallized to a one-page document, the vision statement for this business. Through on-going financial and tax stewardship meetings, the vision statement was broken down into an action plan.
Becoming crystal clear about the “big picture” idea brought the spirit of the business alive again. The breakdown of this vision into a quarterly action plan, led to measurable growth of the business. Through our ongoing business coaching, the business saw a reduction in employee turnover and client attrition and a 34% improvement in profits. Most importantly, the business owner was able to free up one day a week for personal stuff!!!!
Case #2. Fast growing Dental practice, Ocean, NJ
“Paperwork everywhere – no adequate reporting system”
The revenues of this dental company had grown significantly over the last 5 years. There was no real system to record the financial information and make it understandable for decision making. The accountant the owner had retained at the time would come in to pick the information and return the next month with the required government filings. At the year end, the owner would receive business tax returns. Despite the increase in revenues, the company was having cash flow problems.
Accounting should not be done merely because the government tells us to keep book and prepare the tax reports. Straight Talk CPAs’ monthly financial reports that readily gives this doctor what he needs to run his business. The constant monitoring of key financial indicators & receiving an understandable report in layman’s term gives him a better gauge of the financial health of his business.
Our monthly financial statements with easy to understand explanation gave this business owner an instant advantage over his competitors. Through our regularly scheduled Financial and Tax Stewardship meetings, the doctor was able to get an accurate picture of the business to make decisions with more confidence. Cash flow and the overall financial health of the practice improved. By setting up a business retirement plan, the owner was able to significantly save on taxes while funding his retirement.
Case #3. Retail Florist Company, Middlesex County, NJ
“Its not as bad as it may sometime seem!”
This owner needed help in filing their business tax returns for the last 8 years. Day to day procrastination had become a nightmare. The challenge to organize all the paperwork into an understandable format seemed impossible. The fear of the Federal and state tax authorities knocking at the door, demanding back taxes had become the overriding thought during the course of the day leading to reduced productivity and loss of focus to grow the business.
Straight Talk CPAs worked with the business owner to break this “big elephant” of a project into smaller more manageable tasks. All the relevant financial information was pulled in one place and organized to create financial statements and business tax returns. Going forward, we set the business on QuickBooks Online and trained their office manager to use it.
At the end of this engagement, the business owner was surprised at how “painless” this had been. All the past tax returns had been prepared and filed and no more worrying about the tax authorities. The business saw a 20% increase in sales, primarily due to better focus on the customers, instead of the IRS. The businesses’ accounting was organized on QuickBooks with period QuickBooks health checks to ensure the integrity of the data.
Case #4. Manufacturing Company, Somerset County, NJ
“Please, lets not give your money away to Uncle Sam on a gold platter.”
This multi-million dollar 2nd generation company operates from a large warehouse facility in Somerset County. They had worked with an accounting firm that had been handling their books for over 25 years. The current owner shared that the accountant had taken interest in their business when he first took over but for the past ten years, they only saw him once a year. They didn’t receive any proactive advice they felt they badly need with changes in the business landscape and changes in their family structure. They were referred to Straight Talk, CPAs by another one of our clients.
Upon discussions with the owner and key members of the management team in a series of financial and tax stewardship meetings, we uncovered the need for strategic business planning such as succession planning, legal structure changes and a review of their insurance policies.
By analyzing and changing their legal structure, the business saw a significant reduction in their tax liability. Through a business valuation analysis, we were able to transfer partial ownership of the business to the younger family members at the right price. A review of their business insurance policy uncovered unnecessary business exposure we were able to mitigate.
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After meeting with us, you will know for certain whether your current CPA is truly providing you with the tools and strategies to take your business to new heights or if it’s time for a change.