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BSL Security, a thriving 20 year old security guard business, encountered a series of significant accounting challenges that posed obstacles to their operational efficiency and financial management. Firstly, the absence of automated processes within their accounting workflows resulted in time-consuming tasks and an increased susceptibility to errors. The manual management of payroll for their extensive workforce of over 70 employees proved to be a cumbersome and error-prone process. Without robust bookkeeping systems in place, BSL Security struggled to maintain accurate and up-to-date financial records, which hindered their ability to track and analyze their financial performance effectively.
Furthermore, the lack of comprehensive tax planning strategies left BSL Security exposed to potential missed opportunities for tax optimization, ultimately leading to increased tax liabilities. The heavy reliance on paper-based workflows further compounded their challenges, causing delays, inefficiencies, and escalating administrative overhead. The extensive use of paper forms and documentation not only impeded their ability to streamline processes but also posed sustainability concerns in an increasingly digital world.
Addressing these multifaceted challenges necessitated a comprehensive solution that would revitalize BSL Security's accounting practices and enhance their overall operational efficiency.
To overcome the accounting challenges faced by BSL Security, Future CPA implemented a comprehensive solution tailored to their needs. Leveraging advanced accounting technologies and streamlined processes, Future CPA introduced several key elements to drive operational efficiencies.
One of the pivotal additions to BSL Security's operations was the implementation of Asana, a project management tool. Given the high number of projects the company was handling, the integration of Asana proved instrumental in improving project coordination and task management. By centralizing project-related information, assigning responsibilities, and tracking progress, Asana enabled BSL Security to streamline their operations and enhance overall efficiency.
Alongside the adoption of Asana, Future CPA introduced QuickBooks online, a cloud-based accounting platform that provided remote accessibility, real-time collaboration, and heightened data security. This integration enabled BSL Security to efficiently manage their financial records and gain a comprehensive overview of their financial health.
Additionally, Future CPA integrated ADP for automated payroll management, ensuring accurate calculations and timely disbursements for BSL Security's extensive workforce. The integration of Plooto facilitated streamlined payment processing, allowing for seamless financial transactions and improved cash flow management.
Moreover, Future CPA established efficient bookkeeping systems, enabling precise recording and tracking of financial transactions. This implementation resulted in accurate financial reporting and analysis, empowering BSL Security to make informed business decisions.
By combining the power of Asana, QuickBooks, ADP, and Plooto, Future CPA successfully transformed BSL Security's accounting processes, enhanced operational efficiencies, and improved overall project management capabilities.
50% reduction in payroll processing time. Down from 10 biweekly hours to 5 hours.
30% decrease in tax liabilities through optimized tax planning
95% reduction in paper usage, leading to improved sustainability practices.
Parveen Bharti, President, Bees Group
Our forward-thinking firm goes beyond conventional boundaries, crafting innovative strategies that push the limits of what other firms dare to imagine, unlocking unprecedented fiscal advantages for our clients. Here are few of the strategies employed for our clients.
Tax Tip
The small business deduction limit of $500,000 is an annual amount and any unused portion cannot be carried forward to the following year. When the current year’s business profit is below the limit but thefollowing year’s profit is expected to exceed, consider increasing thecurrent profit by not claiming certain discretionary deductions, such asreverse for bad debts. This shifts income from the following year, which would have been taxed at the high corporate rate, to the currentyear, which will be taxed at the low corporate rate.
Impact
We helped a client in SaaS vertical move discretionary bad debts expense to following year worth $145,000. This meant tax rate savings of 13% over two years. This equated to a total tax savings of $18,850.
Tax Tip
Consider speeding up the purchase of new assets when a particular class of depreciable property is about to generate a recapture of CCA. Similarly, consider delaying the purchase of new assets until after the year end if a particular class is about to generate a terminal loss.
Impact
We helped a client in furniture manufacturing space avoid a recapture situation which would have resulted in $37,000 in additional taxes. Client sold an asset with proceeds over $170,000 and with no other assets left in the CCA class. As client approaching year end, we acted on time and advised client to add a new asset to the class.
Tax Tip
Often, several assets are sold as a group. For example, the sale of real estate may include both land and buildings, or the sale of a business may include inventory, land, buildings, equipment, and good will. In these situations, it may be beneficial to write the sale agreement in a way that allocates the deferred proceeds first to assets that will only have a capital gain, with any remaining amount assigned to other assets. In this way, the assets that can defer tax will be sold for deferred proceeds and little or no cash, while the other assets are sold for cash and little or no deferred costs. This, in turn, will create the maximum tax deferral.
Impact
We helped a client in hospitality industry plan asset sale. Client was selling two of their retail locations which included assets such as building, furniture's, fixtures and other items etc. The cash was to be received in a deferred manner and some upfront. We allocated deferred proceeds to asset with capital gains and cash proceeds to other assets. This deferred the capital gain taxes by 2-3 years and resulted in tax deferral of $83,000.
