ES CPA BUSINESS SERVICES

Outsourced CFO Services

Outsourced CFO services are vital for businesses seeking strategic financial leadership, and partnering with Evans Sternau CPA enhances these services by providing deep expertise, comprehensive support, and proactive insights that drive long-term success.

Key Reasons Outsourced CFOs are Important

Outsourced CFO services are crucial for businesses seeking strategic financial guidance without the overhead of hiring a full-time executive. These services provide expert insights into financial planning, budgeting, and forecasting, helping businesses make informed decisions. An outsourced CFO can identify financial trends, streamline operations, and develop tailored strategies to enhance overall financial performance. Engaging a CPA for these services amplifies their value, as CPAs bring a deep understanding of accounting principles, tax implications, and regulatory compliance. This expertise allows them to provide comprehensive financial analysis and strategic recommendations that are both actionable and aligned with the business’s goals.

Why Hire an Outsourced CFO?

Outsourced CFO services, including cash flow projections and annual budgets, provide businesses with expert financial guidance and strategic planning without the need for a full-time, in-house CFO. This cost-effective solution allows companies to access the specialized knowledge and skills of experienced financial professionals on an as-needed basis.

Outsourced CFO Service Packages

Outsourced CFO

On Call Business & Tax Consultations

Scheduled Meetings

Standard Business Performance Dashboard

Customized Financial Performance Dashboard

Annual Budget & Performance Monitoring

Cash Flow & Profitability Forecasting

Essential

Premium

Annual

Concierge

Quartlery

Cash Flow & Profitability Forecasting

Cash flow projections play a vital role in financial planning by forecasting the inflows and outflows of cash over a specific period. These projections help businesses anticipate:

Future cash positions
Identify potential gaps
Make informed decisions to ensure sufficient liquidity

An outsourced CFO can leverage their expertise to develop accurate and detailed cash flow projections tailored to the unique needs of the business.

Annual Budget Creation & Performance Monitoring

Annual budgets are crucial for effective financial management and goal setting. An outsourced CFO collaborates with the company’s management team to create comprehensive budgets that align with the organization’s strategic objectives. These budgets provide a roadmap for:

Allocating resources
Tracking performance
Making informed financial decisions throughout the year

Business Performance Dashboards

Monitor your business’ financial performance in one of two ways:

Utilize Evans Sternau CPA’s standardized dashboard, which includes many of the commonly used performance metrics such as profitability, cash flow, accounts receivable monitoring.
Let us build your customized dashboard, integrating all of your financial and operational data into a report tailored to your business. In addition to our standard metrics, the custom dashboard can provide key insights into customer, business unit and employee performance.

How We Can Help

Accounting Methods
Tax planning for accounting methods, such as cash or accrual, involves selecting the most advantageous approach to record income and expenses for tax reporting purposes. The cash method records transactions when cash is received or paid, offering simplicity and immediate tax recognition. The accrual method records transactions when they occur, aligning with business operations but potentially deferring tax recognition. Businesses can strategically choose between methods, optimizing tax liability based on timing, industry, and income patterns. Careful consideration of each method's implications helps tailor an approach that maximizes tax benefits and financial reporting accuracy.

Accountable Plan Disbursement
Being reimbursed under an accountable plan provides great tax savings. It is an excellent way to get money out of your s corporation tax free. The corporation can deduct the amount of the reimbursement and you do not have to report the payment on your personal income taxes.

Analysis & Coordination of QBI & Reasonable Wage
A reasonable wage for an S corporation refers to the fair and justifiable compensation that an owner-employee receives for their work in the business. It should reflect what the individual would be paid for the same work in a similar position at another company. Determining a reasonable wage is essential because S corporation owners often take a portion of their income as distributions rather than wages to reduce payroll taxes, and the IRS requires that a reasonable salary be paid to avoid tax evasion.

Cash Flow Forecast
A cash flow forecast is a financial projection that outlines the expected inflows and outflows of cash for a specific period, typically monthly or quarterly. It provides insights into a business's liquidity by estimating when and how much cash will be received from sales, investments, and financing, as well as when and how much cash will be spent on expenses and investments. Cash flow forecasts help organizations anticipate potential cash shortages or surpluses, aiding in strategic decision-making, budgeting, and ensuring sufficient funds for operations, debt payments, and growth initiatives.

Company Paid Benefits
C corporations can provide tax benefits to their employees through company-paid benefits, as these benefits are typically considered tax-deductible business expenses for the corporation. Common benefits, such as health insurance, retirement plans, and educational assistance, can reduce the taxable income of the business, which, in turn, can lower the company's overall tax liability. Additionally, these benefits can be offered to employees on a tax-advantaged basis, as they are often not counted as taxable income for the employees, enhancing the overall compensation package and potentially reducing their personal tax liability.

Cost Segregation Study
A cost segregation study is a detailed analysis conducted on commercial real estate properties to identify and reclassify components of the property for accelerated depreciation. By segregating different assets within the property, such as fixtures, building components, and personal property, and assigning them shorter depreciation lives, investors can front-load depreciation deductions, reducing taxable income and increasing cash flow. This strategy benefits property owners by lowering their tax liability in the earlier years of ownership. Cost segregation studies require engineering and tax expertise to ensure compliance with IRS regulations and accurate allocation of assets.

Employee Retention Credit (ERC)
The Employee Retention Credit (ERC) is a U.S. tax incentive introduced in response to the COVID-19 pandemic. It offers eligible employers a credit against payroll taxes for retaining employees during periods of economic hardship. Businesses that experienced significant revenue decline or were subject to government orders could claim a credit for a portion of wages paid to employees. The ERC aimed to encourage employers to maintain their workforce and provide financial relief during challenging times. Eligibility and credit amounts vary based on specific criteria, making it a valuable tool for businesses navigating economic disruptions.

Financing
Establishing financing for a new business is essential as it provides the necessary capital to cover startup costs, operational expenses, and investments in growth. Adequate financing allows a business to navigate initial challenges, seize opportunities, and weather financial downturns, contributing to its long-term sustainability. It also instills confidence in potential investors, lenders, and stakeholders, demonstrating that the business is well-prepared and has the resources needed to execute its business plan effectively.

Historical E&P Study
A Historical Earnings and Profits (E&P) Study is an analysis conducted by corporations to determine the distribution of dividends to shareholders without incurring additional taxes. It involves examining the company's past financial records to calculate its historical E&P, which reflects the cumulative net income, deductions, and distributions over time. This study ensures that dividends are classified accurately, helping corporations allocate distributions as either dividends, return of capital, or capital gains. By understanding their historical E&P, businesses can make informed decisions about dividend distributions that align with tax regulations and optimize shareholder returns.

Insurance & Medical Expenses
Establishing insurance and medical coverage for a new business is vital as it helps mitigate financial risks associated with unexpected events, such as accidents, liability claims, or property damage. Having insurance can protect the business and its assets, providing peace of mind to the owner and stakeholders. Additionally, offering medical coverage to employees can attract and retain top talent, leading to a healthier and more productive workforce, which is crucial for the business's success and long-term growth.

R&D Credit
The Research and Development (R&D) tax credit is a U.S. incentive designed to encourage innovation and technological advancement. It offers businesses, both large and small, a tax credit for qualified research expenses, including wages, supplies, and certain overhead costs related to developing or improving products, processes, or software. The credit aims to stimulate investment in research and innovation across various industries. By reducing the tax liability, the R&D credit supports companies in pursuing research endeavors, fostering growth, and enhancing competitiveness. Proper documentation and adherence to IRS guidelines are crucial to effectively claim this credit.

Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a U.S. federal tax incentive designed to promote employment of individuals facing barriers to workforce entry. Employers who hire individuals from specific target groups, such as veterans, ex-felons, and long-term unemployed individuals, can claim a tax credit. The credit's value is based on the employee's wages and hours worked. The WOTC encourages inclusive hiring practices by providing financial incentives to businesses that support workforce diversity and contribute to reducing unemployment rates among disadvantaged populations. Adherence to specific eligibility criteria and documentation requirements is essential to claim this credit.

More About Evans Sternau CPA

Our core values are proactiveness, responsiveness, and support – they help us ensure that we continue to serve each and every one of our clients to the highest level possible

Proactiveness: Tax, accounting, and advisory isn’t just about solving problems when they arise – Evans Sternau CPA implements better solutions and performs routine checks year-round.
Responsiveness: Keeping all parties informed, always, means everyone is operating with full awareness and to the fullest extent.
Support: Whatever your tax, advisory, and accounting needs are, Evans Sternau CPA guarantees that we make each and every one of our clients feel supported when they work with us.

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In Need of Outsourced CFO Services?

The fastest way to get started with Evans Sternau CPA is filling out our questionnaire. Have questions? Not a problem – feel free to give us a call.

Outsourced CFO Services

Key Reasons Outsourced CFOs are Important

Why Hire an Outsourced CFO?

Outsourced CFO Service Packages

Outsourced CFO

Essential

Premium

Concierge

Cash Flow & Profitability Forecasting

Annual Budget Creation & Performance Monitoring

Business Performance Dashboards

How We Can Help

More About Evans Sternau CPA

INSIGHTS FOR YOU

Outsourced CFO Solutions

Streamline Your Finances with a Trusted Houston Outsourced Accounting Firm

What is an Outsourced CFO? Why should you use them?

In Need of Outsourced CFO Services?

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