Tax Pros Offer Advice for Small Businesses

Specific tips from your colleagues.

By CPA Trendlines Research

When the 2023 CPATrendlines Busy Season Barometer asked practitioners what advice they’d give small businesses, most of the responses boiled down to two essential messages:

  • Don’t be afraid … but be careful … and ready.
  • Hang on to your cash.

MORE: Busy Season Barometer Finds Many CPAs in Transition | More CPAs See Worsening Economy | Marchternity: The Solution Is Community | Why We All Hate the Tax Code | Tax Season 2023: Better or Worse?
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A Little Trepidation

Looking at these early responses to the survey – which is still open for responses – we are sensing a little trepidation over the near future.
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The Hidden Cost of Interstate Sales Tax

Most small businesses are probably paying too much. Or, too little. Who knows?

S.A.L.T. FOR THE WOUNDS: The total estimated hours per month spent on tax management activities, by industry, with retail the highest at 209 hours. (Avalara/Potentiate)

By CPA Trendlines

The true cost of interstate sales tax compliance borne by small businesses is fast mushrooming into a problem of national proportions, according to new research. And while it may be a big opportunity for accounting firms, most small business owners are probably spending too much, or just as worrisome, too little.

MORE on SALT: When Tax Collectors Go Digital | Tax Regs for the Metaverse | Sales & Use Tax Costs Are Higher than Anyone Thought | Survey: Nobody Loves the Wayfair Decision | Accountants to Small Biz: ‘Be Nimble, Be Quick, Be Careful’ | Turn Client Wants into Needs | The 15 Absolutely Necessary Services for CAS Clients | A Job Description for Client Accounting Services | SALT: The Small Business Disaster Waiting to Happen | Survey: Rough Seas Ahead for Small Business |

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According to a CPA Trendlines survey, 39 percent of accountants believe their small business clients were “mostly not in full compliance” with cross-border collection and remittance requirements. Each of those non-compliant clients is a potential problem and an opportunity for their accounting firm.

Now a new Avalara-sponsored survey looks more closely at “emerging small businesses” (ESBs) with under 20 employees, and small and medium-sized businesses (SMBs) with 20-50 employees. READ MORE →

Five Ways to Raise Your Prices

Money roll, calculator and magnifying glassHint: You don’t have to do it all at once.

By Michelle Long and Sandi Leyva

We know some of you might be afraid to raise prices, but there are some painless ways for both you and the client.

MORE SMALL FIRM GROWTH STRATEGIES: Building Reputation to Build Your Business | 3 Killer Lead Generation Channels | Your Existing Clients Are Your Best Leads | Need More Business? Focus on Referrals

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Here are five:

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Change Your Thinking About ‘Small’ Clients

Ed Mendlowitz CPA The Practice Doctor Q and ABONUS CHECKLIST: 11 services that should be part of every “CFO” engagement.

By Ed Mendlowitz
The CPA Trendlines Practice Doctor

QUESTION: I have many small business clients and can’t seem to get larger clients. Any suggestions?

MORE PRACTICE DOCTOR Q&A: It’s Not Sales. It’s Your Duty | 7 Ways to Lose a Client’s Trust | 6 Ways to Take a Client Beyond Tax Prep | 10 Do’s and Don’ts for Making Small Business Clients Happy | 14 Ways to Switch to Value Pricing | Pricing, Billing, Costing: Don’t Blame Clients

ANSWER: When I started, we called the work we did for small clients “writeups.” At some point, write-ups were an embarrassment and we stopped calling them that – we said we handled family businesses. READ MORE →

Tax Trends in Small Business: What Drives Them to Seek Professional Help

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New data obtained by CPA Trendlines shows that 84 percent of small-business owners are now paying an independent tax practitioner or accountant to handle their taxes.

In addition, an increasing number of small business taxpayers appear to be taking advantage of Sec.179 expensing and bonus depreciation.

The new report available from CPA Trendlines includes information on:

  • the number of small business owners who use an outside tax or accounting service
  • how many hours per week a small business spends on payroll tax administration
  • average cost for using a payroll agency
  • hours spent on federal tax
  • various tax burdens
  • how to download complete report (PDF, 13 pages)

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The Powerful Mega-Trends Behind the Upheaval at Sage Software

Sage’s one-brand cloud strategy is built on a tidal wave of change.

Sage NA CEO Pascal Houillon addresses 3,500 attendees at Sage Summit 2012

by Rick Telberg

It would be an understatement to say that the accounting software mavens arriving for the 2012 Sage software convention were in a skeptical mood. At last year’s meeting, they were told that some of the products they know and support (and sometimes love) — like MAS 90, Peachtree, and AccPac — are disappearing under a single Sage label.

It was a long time in coming. The company, with roots in the 1990’s in State of the Art and Best, was built through almost helter-skelter acquisitions without merging and consolidating brands, nor even marketing departments, R&D efforts and support departments.

COMPLETE SAGE SUMMIT COVERAGE AND ANALYSIS:

Now all that is changing. And it’s about the cloud, subscription pricing and a wrenching transformation to a new business model. The question for Sage’s resellers: Can Sage deliver? The question for Sage’s accountant partners: Can they keep up?

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