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✔ Professional Expertise (Not “My Cousin Took a Tax Class Once”)

• Actual tax professionals—year-round, trained, credentialed… not someone who learned taxes from TikTok.

• Ongoing education so they’re up-to-date on IRS changes (because the tax code changes more often than your Netflix recommendations).

• An office that doesn’t disappear after April 15 like it’s part of a seasonal costume shop rotation.

✔ Transparent, Upfront Pricing

• No “mystery math” on the invoice.
• Clear packages that make sense and don’t require a decoder ring.
• Prices based on the complexity of your return—not on whether your preparer likes you.

✔ Secure Technology & Efficient Tools

• A secure portal (because emailing sensitive documents is the tax version of skydiving without a parachute).
• E-signatures so you’re not wrestling with your printer like it owes you money.
• Technology that moves your return forward instead of into the Bermuda Triangle.

✔ A Streamlined Process

• A clear workflow so you know exactly where your return is—not sitting on someone’s desk under a sandwich.
• Predictable turnaround times (yes, that’s a thing… in good offices).
• Status updates so you don’t have to become “that client” who checks in every 48 hours.

✔ Real Communication & Support

• Actual humans who respond before the next tax season.
• Emails written in normal English—not IRS-speak that requires a PhD to decipher.
• Someone who can explain your tax situation without sighing dramatically.

✔ Accuracy & Attention to Detail

• Returns double-checked by humans, not hope.
• Someone who catches mistakes before the IRS writes you a love letter.
• A commitment to accuracy that doesn’t rely on “let’s just see what happens.”

✔ Year-Round Availability

• A preparer who doesn’t vanish on April 16 like they’re entering witness protection.
• Support for notices, planning, and all the life chaos that happens outside filing season.
• Someone who’s still answering the phone in August when your IRS letter decides to arrive late and angry.

✔ A Focus on Your Whole Financial Picture

• Someone who asks about your goals, not just your W-2s.
• Advice that keeps you out of trouble and saves you money.
• A professional who knows taxes, understands real life, and isn’t afraid to tell you when your withholding is a hot mess.

✔ Client-Friendly Experience

• A welcoming office—or virtual system—that doesn’t feel like entering a tax dungeon.
• Clear instructions so you’re not guessing what “all documents” means.
• A process so painless you might actually look forward to tax season… okay, maybe not, but close.

Profit and cash flow are both critical financial metrics, but they measure different aspects of a business’s financial health. Here’s a breakdown of their differences:

Profit

• Definition: Profit is the financial gain a business makes after deducting all expenses, including costs of goods sold, operating expenses, loan interest, and taxes, from its revenue.

• Types of Profit:

• Gross Profit: Gross Revenue (Gross Sales) minus the cost of goods sold (COGS).
• Operating Profit: Gross profit minus operating expenses.
• Net Profit: Total revenue minus all expenses, including operating expenses, interest, and taxes.
• Purpose: Indicates whether a company is generating more revenue than its expenses and this is what you pay tax on.

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Cash Flow

• Definition: Cash flow refers to the net amount of cash being transferred in and out of a business over a specific period.

• Types of Cash Flow:

• Operating Cash Flow: Cash generated or used in the company’s core business operations.
• Investing Cash Flow: Cash used for or generated from investments in assets or other businesses.
• Financing Cash Flow: Cash received from or paid out for borrowing, repaying debts, issuing stock, or paying dividends.
• Purpose: Indicates a company’s liquidity A/K/A How much money is in the bank.

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Example Scenario

• A company sells $10,000 worth of products but offers customers 30-day credit terms. In the same period, it pays $7,000 in cash for supplies and other expenses.

 

• Profit: $10,000 (revenue) – $7,000 (expenses) = $3,000
• Cash Flow: -$7,000 (as the company hasn’t received the $10,000 yet).

Understanding both metrics together provides a fuller picture of financial health. Profit shows long-term viability, while cash flow ensures day-to-day operations can continue.

If you own a business, it’s important that you look at your year-end financial statements to see where you are compared to last year.

This means looking at your income and expenses compared to last year so you can now identify where your business has been in the last year.

By looking at your financials at the end of the year you can now set your goals for the upcoming year regarding revenue and expenses and what went well and not so well in the business.

Once you’ve identified those things that went well and not so well last year, you can put actions into place for the coming year to fix what didn’t go well and improve what went well.

An informational return is a tax form a business fills out telling the IRS and state governments that a taxpayer earned a type of income and certain types of expenses/payments. Types of income can range from dividends, interest, wages, self-employed income, rental income, income from education savings programs, cancellation of debt and more…. Some of the payments can be mortgage interest and real estate taxes, payments for education, health insurance from the marketplace.

Enter in the IRS matching program: These informational returns are then sent to the IRS and state. The government can now see what types of income you were paid, and this also gives them an idea of what income they can expect to see on your return. The IRS then matches what they have on file with the information you put on your tax return. When there is a mismatch, that will generate a notice asking for a correction and/or explanation. Then the appropriate steps can be taken.

These informational returns also help reconstruct tax returns when you haven’t filed in several years and you have lost the forms for a variety of reasons.

So, when tax time comes, it is important you give all these informational returns to your tax preparer so the information can be put on your return to avoid mismatching.

Some of the forms include but not all inclusive are the 1099 series: DIV, INT, B, C, A, MISC, NEC (new in 2020), Form 1098 from mortgage companies, K-1’s from S-Corps, partnerships and estates.

Also, the IRS will be rolling out a new tax form for digital assets soon.

Here are several ways taxpayers can prepare and stay organized:

1. Gather and Organize Your Documents Early

• Income Statements: Collect all W-2s, 1099s, K-1s, and any other income-related forms. Including freelance, investments, rental, and other side jobs.

• Deductions and Credits: Gather receipts or statements for deductible expenses (medical, charitable donations, business expenses, etc.). Keep track of any credits you are eligible for, like education or child tax credits.

• Bank Statements: Have bank statements and records of interest or dividends earned throughout the year.

• Retirement Contributions: Include any contributions made to retirement accounts, such as IRAs, 401(k)s, or other savings plans.

• Real Estate Documents: If applicable, gather documents related to mortgage interest, property taxes, and home sales.

• Other Forms: Don’t forget about other important forms, such as 1098s for mortgage interest, 1095s for health insurance coverage, and 1099s for investment income.

2. Keep a Tax Folder or Binder

• Physical or Digital Folder: Create a dedicated folder (physical or digital) where you can store all tax-related documents as they come in. This helps you keep everything in one place and ensures you won’t overlook anything when it’s time to file.

3. Track Mileage

• Mileage Log: If you drive for work or business, use a mileage tracking app or manually record your mileage. Keep all receipts for gas and maintenance if you plan to deduct these expenses instead of using mileage. You can only use the mileage deduction OR the actual expenses, NOT both

4. Review and Update Your Tax Withholdings

• Check Withholdings Mid-Year: Use the IRS withholding estimator tool to see if you’re withholding enough tax from your paycheck. If necessary, adjust your W-4 form with your employer to avoid surprises at tax time.

• Quarterly Estimated Taxes: Self-employed individuals or those with additional income should keep track of their estimated quarterly payments and ensure they’ve made all necessary payments.

5. Review Your Last Tax Return

• Last Year’s Return: Reviewing your previous year’s tax return can help you spot any deductions or credits you may have missed, plus it helps you understand what to expect this year. Look for recurring sources of income or deductions that you’ll need to report.

• Carryovers: If you had carryovers from previous years (e.g., unused credits, deductions, or losses), make sure to track them for the current year’s filing.

6. Review Any Life Changes

• Marriage, Divorce, Children, or Other Major Life Events: Life events can significantly impact your tax situation. Review any changes in your circumstances, such as getting married, having children, moving states, or starting a business, and be sure to adjust your filing status or deductions accordingly.

• Education: Keep track of tuition payments or student loan interest as they may qualify for tax deductions or credits.

Identifying slow-paying clients is essential for maintaining healthy cash flow and managing your business operations effectively. Here are several ways to identify them:

1. Monitor Payment History

• Late Payments: Clients who consistently pay after the due date are obviously slow payers. Keep track of invoice payment dates and compare them to due dates.

• Partial Payments: Some clients may pay a portion of their invoice and delay the rest. This can be a red flag for slow payments.

• Repeated Delays: If a client is often late on multiple invoices, this is a clear sign that they may have cash flow problems or are prioritizing other obligations.

2. Review Aging Reports

• Accounts Receivable Aging Report: This report shows outstanding invoices, broken down by how long they’ve been overdue (e.g., 30, 60, 90+ days). A client who consistently appears in the “overdue” columns is likely a slow payer.

• Trends Over Time: If a client’s payment patterns worsen over time, they may be heading into slow-paying territory.

3. Assess Payment Frequency

• Inconsistent Payments: Clients who do not pay regularly or according to the agreed schedule could be a sign of payment difficulties or a disorganized business structure.

• Payment Method Issues: If a client frequently faces issues with their preferred payment method (e.g., bounced checks or declined credit cards), this could indicate cash flow challenges on their end.

4. Client Communication

• Excuses for Late Payments: If a client regularly provides reasons or excuses for not paying on time (e.g., “delayed processing” or “waiting for funds”), it’s a signal they may be slow to pay.

• Unresponsive to Reminders: Slow payers often ignore or delay responding to payment reminders or requests for information about overdue invoices.

By monitoring these behaviors, you can proactively manage your client base, follow up on overdue payments, and even consider revising payment terms for clients with slow payment histories.