In my work with nonprofits I see that any organization without a substantial base of operating cash can experience cash flow problems. What causes them? There are many factors unique to the nonprofit business model, such as seasonal fundraising, annual grant payments, and reimbursement-based contracts. I advise nonprofit leaders to focus on the organization's cash flow.
I look at the millennial generation and see incredible opportunities for financial planning and wealth building. There's something about the spirit of this young generation. Many are exploring the possibility of early retirement and are eager to reach financial independence in order to do so. My advice is always to focus on acquiring assets.
Many of the church leaders I know and work with have been puzzled about an obscure provision in the Tax Cuts and Jobs Act of 2017 known as the parking lot tax. This provision deals with parking provided to employees. Some leaders are concerned that these parking spaces have become a potential tax liability. As frequently happens with a change in the tax code, there is lots of confusion about the intent and its consequence.
The clients that I see who are investing in real estate - landlords, property owners, and investors - are building future wealth with assets. Your real estate is a business for tax purposes and may allow you to take advantage of a lot of the tax deductions available to businesses. Investing in real estate is a solid way to build wealth as long as you have a clear business plan and an efficient tax strategy.
As a CPA during tax season, I meet with lots of people. Many of them are regular clients who engage in year-round tax planning. For these people, tax season has few if any surprises. Others aren’t so well prepared. No one wants to pay more in taxes than they have to. Two of the best strategies for preventing that are tax planning and early filing.
For a church, cash flow can make or break its ability to survive. The reliance on member donations increases the need of church leaders to manage finances through revenue peaks and valleys. A cash reserve can be the buffer to carry you through the valleys. Without a cash reserve to draw from, many churches have found themselves scrambling to raise funds when needs come up.
Tax season is the time when CPAs and other tax professionals are fully engaged in preparing client returns. The professionals know that for small businesses taxes are always challenging and require constant attention. Consider how the changes to the tax law that apply to the 2108 returns increase the complexity of the process. Here is some advice from tax professionals for small-business owners to help them respond to the changes brought by tax reform and navigate the perennial tax burdens they always face.
If you are investing in rental properties, then you’ll become well-acquainted with the Schedule E tax form. The Schedule E is where you’ll report all of your expenses and income for the year, and take advantage of any deductions you may want to claim.
The Tax Cuts and Jobs Act brought about many changes to the filing of the 2018 tax returns. The 2019 tax return filing season is the first time that the new tax law will be in effect. As you begin prepping for your 2018 tax filing, become familiar with these changes. You can ask your CPA or tax consultant to help you find the tax advantages available to you.
Church boards serve multiple masters. Tasked with guiding and keeping the mission-driven activities on course, board members can lose touch with the day-to-day financial operations. The board's responsibility for the ongoing monitoring of the church's fiscal matters is a fiduciary one. To do so, it must receive regular and accurate financial information.