Hey Lake Norman entrepreneurs & business owners! Ever wondered what a CPA is and why they’re essential for the success of your small business? Don’t worry; we’ve got you covered. In this article, we’ll break down the mystery behind CPAs, why you might need one, and how they can help you navigate the complex world of taxes and everyday bookkeeping without drowning you in jargon.

What is a CPA?

First things first, let’s demystify the acronym. CPA stands for Certified Public Accountant. These financial wizards are like the superheroes of the business world, armed with numbers and armed to save the day (or at least your tax season). A CPA can help you navigate through confusing tax situations, and can help you grow your business by helping you create financial roadmaps. It’s best to begin speaking with a CPA as soon as you start forming your business. That way you have a financial consultant on your side every step of the way.

Why do I need a CPA?

1. Tax Laws Are Like a Maze:
   Do you ever find yourself lost in a maze of tax laws, not sure which way to turn? Have you tried researching the complex state and federal tax laws on your own only to find yourself more confused than when you started? Well, that’s where a CPA comes in. They know the ins and outs of the tax code, making sure you don’t miss any deductions and helping you keep more money in your pocket. In addition to understanding tax laws, a CPA can help with tax planning.
2. Save Time, Focus on Your Business:
   As a small business owner in Lake Norman, you’ve got a million things on your plate. Let a CPA handle all things accounting including number crunching, bookkeeping, bank reconciliation, balance sheets and more so you can focus on what you do best – running your business.
3. Avoid Costly Mistakes:
   One wrong move on your tax return could cost you big time. CPAs are there to catch those mistakes before they become expensive problems. Think of them as your financial safety net.

How Can a CPA Help with Tax Filing?

1. Effortless Tax Preparation & Planning:
   Forget the stress of tax season. Your CPA will take care of everything, from gathering necessary documents to filing your return promptly. No more last-minute panics! Bring your related tax documents in, and let an experienced CPA do the rest.
2. Maximizing Deductions:
   CPAs have a keen eye for spotting deductions you might have overlooked. They’ll make sure you’re taking advantage of every opportunity to save money. They’ll even help you plan for next tax season by showing you how to defer tax liability through investment options, splitting incomes, increasing tax deductions and more.
   
3. Year-Round Support:
   It’s not just about tax season. A CPA provides year-round support, offering advice on financial decisions and helping you plan for the future.
   

Frequently Asked Questions:

Q: How much does hiring a CPA cost?

A: Costs vary, but think of it as an investment. When you become our client, you aren’t just spending money to check a box and say your taxes are accounted for. Our fees are often paid back through the reduced tax liability you will enjoy as part of our planning and legitimate tax savings strategies. You will likely save more money than you would have if you choose to tackle this alone. Plus, we have a wide variety of packages available to meet the needs of all different types of businesses.

Q: Can’t I just use tax software?

A: While tax software is convenient, it lacks the personalized touch of a CPA. Software can’t provide the tailored advice and strategic planning a CPA offers.

Q: Do I need a CPA if my business is small?

A: Absolutely! CPAs aren’t just for big corporations. Small businesses in Lake Norman & surrounding areas can benefit immensely from the expertise and guidance of a CPA.

This weekend’s news coverage and social media scroll were dominated by reports of the awful things happening in Israel right now. It’s pretty difficult to swallow the images of violence and abuse being perpetrated by Hamas. And no matter how many times you hear about these kinds of things, it never gets easier. 

But even with difficult things like this, be mindful of letting your thoughts and feelings be dominated by the coverage. There will always be something to read and take in, but these things have a way of igniting emotions to a breaking point if they’re not regulated. 

And, as a business owner, you need to make sure a good portion of your energy is spent on what pertains to your business. 

Before I move on, let me also briefly address what you should do if you have an Employee Retention Credit (ERC) claim submitted to the IRS that’s been put on pause. The primary thing you need to keep in mind is that if you get faced with an audit about the claim, the IRS will want concrete evidence and documentation to support your eligibility. So make sure you have that in order. It’s your best defense against over-zealous investigators. 

So, on to what I want to discuss today. I wrote recently about some of the other paid time off policy options out there for businesses to offer besides the “use it or lose it” approach. A fellow Lake Norman business owner responded to share how she was kicking herself for not having more clearly defined PTO payout rules in place in her own office. 

She had apparently found herself in a financial pinch when two of her staff resigned and opted to take their unused vacation days as paid time after their last day in the office. Because she had no PTO payout rules in place to govern when employees could take that benefit (her state doesn’t require payment of accrued vacation time upon separation), she opted to pay those staff members for their unused days to avoid potential legal confrontation over her vague vacation policy wording.

That’s a place none of us want to be in, especially because it’s entirely avoidable. So with that in mind, and as we’re rapidly approaching EOY, I’d like to show you some policies to make sure you have included in your official vacation benefit package.

A PTO Payout Policy Checklist for Lake Norman Business Owners
“The biggest lesson I’ve learned by living a little is you should always put things in writing.” ― Richard Branson

Because PTO payout rules vary from state to state, you’ll want to start by verifying the local laws you’ll need to abide by first. You can find those PTO payout laws by state here.

Whether your employees get paid for their unused vacation days when they say their goodbyes depends on two things: your company’s policy and your state’s laws. Some states have specific rules about this, while others leave it up to the employer.

In most cases, it’s the company’s call. You decide whether or not to dish out some extra cash for those unclaimed PTO days when an employee leaves. But here’s my main point today – you need a well-defined PTO payout policy in place to guide this process.

I should point out that there’s technically no federal law that forces businesses to offer PTO to their workers. It’s not a requirement. But, let’s be real, offering PTO makes for happier employees and will help you attract better talent.

Now, if you’re thinking about creating or changing up your own PTO payout policy, here are some definitions and provisions to include:

1. How payout is calculated
You (the employers) are responsible for stating how PTO hours are tallied and calculated, while also withholding taxes according to IRS regulations. Vacation pay doesn’t always fall under the category of supplemental wages, but when it’s disbursed as a vacation payout, it becomes subject to a flat 22% supplemental income tax.

2. How to handle sick days
In 14 states and Washington, D.C., employees have the right to get paid when they’re sick. It’s a state thing, not a national one. So, think about whether you want to pay your employees for unused sick days when they leave.

3. Timing of payout
If you’ve got a policy for paying out unused PTO, there’s usually a deadline. Most times, it’s within 30 days after the employee leaves.

4. The reason for separation
In some states, it doesn’t matter if an employee gets the boot, gets laid off, or decides to call it quits – they still get paid for their unused PTO. But that’s not the case everywhere. Some places let you decide if the reason for their departure affects the payout. If your state doesn’t spell it out, make sure your policy does.

Now, this list isn’t comprehensive. There’s more to it, and that’s where an HR pro can lend a hand. They’ll make sure your Charlotte company’s policy abides by local regulations while also contributing toward a happier workplace.

To being prepared,

Kristin Gravitt

We’re just over a month away from the MLB playoffs, and this year (like every year) has had its share of sketchy calls that fans and players have been unhappy about.

While not everyone’s favorite summer pastime (the sports season that never ends still has more than two months of games to go), this summer there are seemingly more strike calls than ever happening beyond the diamond.

UPS, Hollywood actors, and screenwriters, food service workers in Vegas, United Auto workers, LA city employees … even doctors in the UK are getting in on the action. And they’re striking over more than just compensation.

The recent SCOTUS ruling makes way for businesses to sue unions for financial damages caused by strikes, but despite that extreme (and expensive) legal protection, many employers are understandably nervous.

Now, most Lake Norman SMBs like you don’t have to worry about a mass walk-out like these major industries are experiencing, but you do have to deal with the issue of disgruntled employees who want better compensation, benefits, working conditions, or company policies than they’re currently getting.

You know what I’m talking about.

So it’s worth spending time thinking through how you as an employer can manage to keep your workers happy when they ask for more while shielding your bottom line at the same time. This is about staying in business, too.

Let’s go there today.

Compensation Is Just the Start, Lake Norman Business Owners
“When you take care of your employees, they take care of your business. It’s as simple as that.” ― Richard J. Daly

Happy employees are the backbone of any successful organization, as you have probably learned from experience in dealing with staff on both sides of the spectrum. And research says so too: according to a study by Gallup, companies with engaged employees outperform those without by a whopping 202%.

But we know keeping satisfied workers is not just about compensation; there are other non-tangibles you can offer to maintain a happy workplace, and much of that can be demonstrated during the negotiation process.

How UPS Averted A Strike
You’ve heard by now that UPS reached a deal with employees in late July to avert a threatened strike. This year’s negotiations between the company and the teamsters’ union representing employees went better than it did in 1997, when 185,000 UPS workers went on strike for 15 days, creating havoc in the shipping industry.

But this time around, both sides voiced their satisfaction with the deal’s terms, which included compensation increases, new hires, comfort and safety improvements in trucks, and other changes to overtime and seasonal work policies. Negotiations lasted just over five weeks.

This very recent example of a reached deal demonstrates that negotiating with employees can be a delicate dance, but success is always possible, even in complicated situations (like 340,000 workers in the balance). 

So let’s talk about a few of the right moves you can make, regardless of the compensation terms, that can help usher in a win-win situation.

Listen
Do this first, and not just for formality’s sake. Listen actively to your employees’ concerns and requests while remembering that you were in their shoes at one time. Keep the lines of communication open and make sure your workers feel heard. This fosters trust, which is the key to not just a successful negotiation process, but also to retention and a positive workplace culture.

Do Your Research 
Come into the conversation having researched industry standards for compensation and benefits. Use statistics to back your proposals, making it clear that you’re offering a fair deal based on what’s happening in the market today. A data-driven approach can help lend credibility to your negotiations.

Be Flexible
Negotiations involve give-and-take so be open to compromise. Consider offering different options for compensation and multiple solutions to alleviate their other concerns. This can create an atmosphere where employees feel more involved in the final solution because they can choose what suits them best.

These are days when Charlotte employers have to offer more than higher compensation terms to attract and keep employees, and these principles are applicable to a business of any size in any industry.

My main goal in sharing these values I’ve learned over the years is to remind you that this process doesn’t have to be a battle. It can be a collaborative and peaceful effort where both parties leave satisfied.

A win-win is good for everyone.

We’re on your side,

Kristin Gravitt