Bohemia, NY (PRWEB) August 17, 2013
On August 17, Lawrence Teicher, a leading Long Island CPA and founder of CFO Consulting Services, LLC, comments on an article published by Inc.com with regard to the importance of documenting a company’s taxable income.
According to an article published by Inc.com on August 9th titled “The Mistake That Almost Cost Us Our Business,” husband and wife business owners Doug and Laura Zander made a mistake that almost bankrupted their business. After opening two yarn shops in California, the article says the couple was making over $1 million in sales. Instead of spending the money on advertising, they reinvested most of the profits back into their business to increase inventory. However, all of the money they were putting back was considered taxable income, which left them with a huge bill to pay come tax season.
Teicher, a seasoned Long Island CPA and part-time CFO, says many startup business owners don’t realize that they can be taxed on the money they are using to reinvest into their company. “It’s extremely important that when you start a business to constantly manage your cash flow, especially when you notice your revenue growing,” he says. “If you don’t take the time to monitor where you are spending your taxable income, you could wind up with a huge surprise in April. While this couple was lucky enough to have the money to cover the tax bill, most business owners are not. Usually, they have to take out a loan to pay the bill, which puts them deep in debt.”
Teicher says hiring a part time CFO to manage books could help avoid future tax problems. “Business owners need someone that understands tax protocol, as well as bookkeeping,” he says. “It’s always a good idea to hire a financial advisor or a part time CFO to help manage accounts and keep cash flow on track.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.