Author: Tony Novak

  • Small business cash flow management for a recession

    Preparing for a recession means preparing for the unknown. That’s a tough thing to do! The best advice is to think conservatively and get a second opinion from a CPA with experience in recovery from recessions and other economic disasters.   One tool is to use existing accounting data, supplemented with new information, to create a visual cash flow forecast. After we see a timeline picture like this, it is easier to add the additional protections to ensure adequate cash under a possible downturn in the economy.   Should we be looking at this type of cash flow information for

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  • Earned income is not recharacterized or “netted” for self-employment tax calculation

    This is an except from a client email that addresses the point that we don’t recharacterize income by passing it through LLCs, partnerships and S-corporations. Earned income is subject to either wage taxes or self-employment tax.   “You asked whether income generated by ZZZZZZ Consulting LLC, taxed as a partnership, can be treated in any manner other than earned income by the partner/member ZZZZZZ Group LLC, taxed as an S corporation, and ultimately its one shareholder, you. Secondly, you asked whether income earned in this manner, if it is earned income, is properly categorized as self-employment income or whether it

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  • Discussion of the origin of the word “Nantuxent”

  • Solving Tax Problems: Three key strategies

    When solving tax problems with the IRS, state or local government, we consider three key issues: Solve the immediate problem as quickly, efficiently and at the lowest cost possible. This is mostly a technical issue of knowing how to work within the complex tax compliance systems to resolve liens, levies and collection actions. Address the underlying cause to ensure that it does not happen again. Tax problems tend to be symptoms of other financial stress or management weaknesses. We delve into this to ensure smooth operations going forward. Replace losses. Tax problems cost time, money and opportunities. We want to

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