It is important to note that ALL deductible expenses must be “ordinary and necessary”
and specifically related to the business, regardless of structure. If so, then operational
expenses such as advertising, work-related travel (the higher amount of direct costs or a
mileage-based formula), office supplies, payroll, health and professional liability
insurance, professional fees, telephone and utilities.

These are constantly changing and evolving, and there is typically not a one-size-fits-all
answer. This is one of the reasons you should hire an expert in this field to navigate so
please double check with your CPA or consider asking another for a second opinion.

Your company should maintain receipts, along with bank and credit card statements
(typically for three years) and utilize a digital software platform such as QuickBooks
Online. There are even some incredible apps that allow you to take a picture and code
right away, to substitute the need for physical storage.

Again, it is very fact-dependent, but generally you should consider a strategy that
combines a return of capital with retirement savings for income tax benefits, and
possible reduction of Social Security and Medicare taxes. Finding the right balance is
key.

There ARE multiple options available, such as Quickbooks, Xero, SageIntaact and
others. Most have the same basic functionality, with some offering more robust solutions
for consolidated multiple entities, for example. Whatever the platform, we highly
recommend a cloud-based solution that allows much easier access for multiple users,
including your external accountant.

All transactions, whether cash or not, should be recorded similar to expenses with a
digital paper trail. Proper use of your POS system is essential to tie out revenues to
both the accounting software and bank receipts.

A Health Savings Account can be a viable option to save taxes up to a certain amount
(currently $4,150 for individuals and $8,300 for families) for spending on qualified
medical expenses and saving for retirement on unspent funds. One caveat is that this
account must be used with a High-Deductible Health Plan, so out-of-pocket costs can be
a bit of a “sticker shock” to people.

Because sales tax varies from county to county and state to state, you must be aware of all guidelines that apply to your business. At the end of the day, this is 100% your
responsibility, so please inquire locally for the rules, regs, and process to follow.

As is the case any time there is a Federal administration change, there is the possibility
of tax law changes. For 2025, the current consensus opinions are that there may be only an extension of 2017 laws that were scheduled to expire this year. In short, it is too early to tell for this year, but there have not been any sweeping changes that have an impact on 2024 tax returns filed in 2025.

This question is a great example of understanding the importance of utilizing a
professional and getting professional guidance to avoid costly errors. In other words, you should be consulting annually, at the very least, with a CPA who understands your healthcare business and specific personal tax situation.

We have seen many small business owners underappreciate the importance of a proper
month-end closing of the books. Beyond reconciling accounts to source documents, it is such a time-saving discipline to properly code expenses throughout the year. It is very
difficult to remember what a transaction was 9+ months ago, if not recorded timely. The
ultimate risk is missing deductions and paying more taxes than necessary.

Utilize an accounting software program, reconcile all accounts monthly, save electronic copies of statements, and utilize an expense app to save digital copies of receipts. If you choose not to use specialized software, prepare Excel worksheets that summarize all your income and expenses (separating business and personal). Everything should be readily available to your CPA in a digital format with a couple clicks of the mouse.

At a minimum level, the interaction with your accountant should include them providing you with a specified document request and/or helpful checklists that ask questions to help you think about things that occurred in your business or personal financial life that may have been unique and have a tax implication.

There are multiple levels of answers for this, and we feel it revolves around the size and complexity of your business. At a minimum, you should have a business checking account and a business credit card. Some businesses find that having a separate payroll account is valuable to ensure employees are well-covered. And as the business matures, a savings account can provide some fulfillment as a tangible measure of growth along with some reserve in the event times get leaner.

No matter the number of accounts, we highly recommend a forward-looking cash flow forecast, which helps determine expected timing of revenues and expenses, the need for reserves and allows for planning of larger expenditures such as equipment purchases or expansion plans.

We strongly recommend a monthly meeting, soon after the books are “closed” and within the first half of the month. The primary focus of the monthly meeting should be the income statement (which summarizes revenues and expenses) and operational trends.

At the end of each quarter, there would typically be a more comprehensive meeting that adds a review of the Balance Sheet (a snapshot of assets and liabilities), and discussions about business and tax strategies.

Simply put, meeting with your accountant once each year will essentially yield a basic
tax return filing that may or may not be the best result you could get, and with you feeling like you are missing a potentially valuable advisor who should be fluent in the financial language of business.