Tyler McBroom

When it comes to your business finances, the bottom line is this: it ain’t all about that top line. Even though it’s fun to grow it, and you get that hit of dopamine when new sales come through. Even though it’s what everyone uses when they’re sizing each other up at conferences.... Even though it IS one element of business performance. It is more critical to focus on the cash flow that is coming to the bottom line. You can’t make payroll and feed your family on revenue earned. Those are made with cash in the bank. Who is with me on this movement to change the one metric that business owners consider the most valuable number? Let me know in the comments below!

If you were looking for a bit of GOOD news to open up 2021, I have some to share with you: In the new stimulus bill that congress passed recently, they confirmed that expenses used to qualify for PPP Forgiveness are officially TAX DEDUCTIBLE! On top of that, the debt forgiveness income is tax-free...which means that if you received a PPP loan this year then it is essentially free money.... Make sure you have your documentation in place and apply for forgiveness when your bank opens it up to apply (if it hasn’t already)! Tag a business owner who DEFINITELY needs to see this, and enjoy your weekend!

One of the most common questions I get when someone sells something for a big gain is this: Should I bite the bullet and pay the tax now, or use strategies available to defer the tax until later? This is an especially challenging decision given the discussions that capital gains rates may be disappearing entirely.... Ultimately it comes down to this: what will you do with the cash that you save by deferring the tax? If you are planning to blow it on a fancy car or luxury vacation, I’d say bite the bullet and pay now. But if you have investments where you can deploy the cash and get a return on it, eventually that tax will be paid for in the gain on your investment. Have you thought of this as a decision-making factor before in whether to pay now or defer? Let me know below! Full interview with @deferredsalestrust coming soon!

Are you operating as an LLC and have been wondering whether you should be an S-Corporation instead? Did you know you can be an LLC and simply elect to be TAXED as an S-Corporation? Watch the video for the decision-making process on whether this move is the right one for your business and tax situation.... Tag a business owner who needs to hear this, or hit the arrow and send it straight to their DMs!

Paying for doctor visits and prescriptions can add up quick, especially if you have children who need regular check-ups. If you spend money on medical expenses quite often, consider opening an HSA account to make sure ALL of those expenses are deductible, rather than just some of them. The way the medical expense deduction works on your itemized deduction is that the deductions are capped by what’s called a 10% AGI limitation.... This means that you don’t see a dollar of benefit until your medical expenses reach a total of 10% of your income. So if you make $100k per year, the first $10,000 of medical expenses result in NO tax benefit to you. Instead, if you open up an HSA account then the amounts you put into that account are tax-free, then you can use the money in that savings account to pay for co-pays, prescriptions, etc. It is a great way to see a tax benefit from your first dollar of medical expense. Tag someone who would benefit from seeing this!

Creating success in your life is hugely dependent on the habits you create. The same principle is true in building a success business, and that especially applies to your financial habits. As a best practice, pick one day each month (around mid-month so the books have time to be updated) where you consistently review the financial performance of the business.... How was revenue? What about cash flow? Did you collect more than you billed or less? What is your profit margin, meaning how much did you KEEP for every dollar you made? By picking a day in the month to review your numbers, it will ensure that you don’t wake up one day and find yourself out of Cash! On top of that, it will give you MUCH bigger odds of building a profitable, healthy, business that has war chests full of cashno matter what economic season we are in. Can you commit to a monthly review of your finances for every month in 2021? Let me know!

It’s a common axiom of life and business that leaders are readers. Talk to any business leader who has been successful, and you will almost always meet someone with a vigorous reading habit. But are those books deductible in your business?... The answer, in typical accountant fashion: It depends. If you are business owner and the book will improve your skills in your business, then the book is absolutely a business expense. If the book is more for entertainment or a non-business subject, then it is not deductible. Even if you are a business owner. And if you are employee, unfortunately you can’t deduct any of the books you buy even if they are related to business (so you may want to ask your employer to purchase the book for you if it will benefit your job!). If you read a lot, those books costs can add up! This is one of those little items that when you stack them up over time can turn into a big savings. And I want to know: what’s a GREAT book you’ve read recently? I’m always adding to my list! #cpa #smallbusiness #books

First sunrise of 2021. One thing is for certain in my bones: this will be an incredible year. For my family, my health and fitness, my businesses, my wealth, and my own personal dreams.... Happy New Year to all of you Taxsavers out there, I am so grateful for you. Let’s make it an amazing year.

When is the last time you REALLY looked at your company's key systems and processes? If you have outdated or inefficient processes across your business, this can significantly reduce profitably--not to mention, hurt morale because employees get frustrated doing things in ways that take longer than they need to be. At @measuredresults, we review at least 1-3 key processes each quarter to see how they are working, what can be adjusted or eliminated, then put them into practice.... From there, we test and iterate; sometimes the changes are perfect, other times they are total disasters. But we have had many experiences where we found processes that were completely broken. By taking out the magnifying glass and treating ourselves as our number one client, we have been able to fix issues that have frustrated both our clients and employees. If you commit to doing this regularly, I guarantee it will show up in extra dollars to your bottom line. And in the process, will likely increase morale as well. Do you constantly evaluate your processes, or is this an area you can improve upon? Let me know in the comments! #cpa #smallbusiness #taxes

If you have a Traditional IRA account, there is still time to make a contribution and get a deduction on your 2019 tax bill! Normally, you must put money into your IRA by April 15 to get a prior year deduction, but since they extended the tax deadline this extended the IRA deadline as well. You can put up to $6,000 per tax year into the account and get a deduction, and if you’re married you can do $6k EACH.... But you must make the deposit by 7/15, so if you’re thinking about it be sure to decide fast! Keep in mind if it’s a Roth IRA then you don’t get a deduction now (but it is tax-free in retirement), so you wouldn’t save any taxes by contributing to your Roth in the next two days. If this is helpful, hit that like button and let me know in the comments below! #cpa #smallbusinessowners #retirementplanning

One of the greatest benefits of being an LLC taxed as an S-Corporation is that you can dramatically reduce the 15.3% Self-Employment Tax on your income. Depending on your annual income, this could be up to $15,000 per year! But doing so requires a special election to convert your LLC over to being taxed as an S-Corporation, and since we are almost halfway through 2020 you may be thinking you are too late to save these thousands on the income you earned in the first half of th...e year. The good news is, there's an IRS election for that! If it makes sense for you to be an S-corporation for general tax purposes, you can make a special election to treat your LLC as an S-corporation back to the beginning of the year. Now, if you haven't already formed the entity you can't go back in time and create an LLC--but if you have an LLC you should consider if this is the right move for you. Want to speak with an actual professional to see if that makes sense? Head to the link in my bio and you can schedule a free consultation with someone from my team. Don't miss out on easy savings! #smallbusiness #cpa #taxes

THE TWO DIFFERENT TYPES OF TAX SAVINGS. Do you know the difference between PERMANENT tax savings and DEFERRING taxes? If not, check out the video above because it’s a critical tax planning concept for your business.... The basic concept is this: With permanent savings, you get the deduction which lowers your taxes, and never have to pay it back. With a tax deferral, you take the deduction now which helps with cash flow, but will ultimately pay it back. They are both important planning items, but you want to always use up the permanent savings strategies first and then go after the deferral. Is this a concept you were aware of? Let me know in the comments! #cpa #smallbusiness #taxes

Recently Intuit QuickBooks asked me to share some best practices around the all-important topic of payroll for small business owners. Please give it a watch! If you find value in it, feel free to share with another business owner too. :)

This is something I’ve learned through experienceboth good and bad. If you are going to build anything worthwhile, you must do it with others. When you are a #solopreneur you can earn a respectable living through grind and hustle, but to build anything of true and lasting value you need a team around you.... As @measuredresults has grown from 4 total team members (including my father and I) to going on 30 just 3 and a half years later, we have had seasons of successful, long-term hires. And others who didn’t last as long. A key growth activity is placing a high level of importance in conscientiously and intentionally building your team. A bad hire performance-wise or simply with culture fit is expensive indeed, and sucks for the team members you value too. In addition to our quarterly celebrations that are tied to company goals, we incorporate both the DISC test and the Team Dimensions Profile into our hiring process. This helps us determine if the team member’s natural talents fit the position. Beyond that, we try to incorporate stories that convey our culture of fun, goofy people to make sure the potential hires will fit in. It doesn’t always work out, because some people are just great interviewers, but by incorporating these factors into the hiring process it definitely helps improve the chances of building a team who will be excited about excited with us and together with each other. Tag someone you are grateful to be working with! #smallbusinessowners #cpa #workculture

How do you track your business expenses to make sure that your deductions hold up in an audit? Do you use what I call the Shoebox of Death method, where you shove receipts (that have also faded after three cycles of laundry in your pocket) into a shoebox in the corner of your office, and hope you never have to go through them again? If that’s you, there is a better way! Instead of putting them in a shoebox, use a receipt scanning app like Receipt Bank, Expensify, or the fea...ture within your @quickbooks app and take pictures of the receipt! Once you snap a picture of the receipt and have it stored somewhere that is backed up on the cloud, you don’t even need a physical copythe IRS accepts receipt photos as documentation. And taking the picture when the receipt is brand new is even better than the paper copy, because digital photos don’t fade over time like paper receipts do. If you need help cleaning up your own books, hit the top link in my profile and schedule a time to chat with our team! #cpa #smallbusiness #taxes

How do you manage the financial affairs of your business? Is it through a weekly and monthly routine reviewing your books, where you analyze performance against a set budget? Or is it more the I check my bank balance to see how much cash I have left method?... Most entrepreneurs I encounter are unfortunately practicing the second method. It’s also one of the primary reasons 80% of businesses fail within the first 5 years. Instead of managing your business by bank balance, try this: Put a half day on your calendar each month to review your numbers. Ideally it’s a week or so after your bank statement dates to give your accountant time to reconcile the accounts. On that day, review all the financial aspects of your business. This means you must have a budget. Compare how you did against the budget, what do your receivables (who owes you) and payables (who you owe) look like? How can you speed up your cash? Did you hit your revenue goals? What needs to be adjusted? Taking this half day monthly will allow you to have a better handle on the numbers of your business, and then when you check your books throughout the month you’ll know how you’re performing against metrics that actually matter. Instead of just looking at how much cash you have in the bank. If you can practice this regularly, you will be in the top 0.5% of businesses guaranteed. Who is committed to adding this habit in the second half of the year? Let me know below! #cpa #smallbusinessowner #taxes

Is there ever a time when you should NOT take a deduction, and pay more tax? As we come into the second half of June, we are getting close to the heart of Mid-Year Tax Planning time, and I want to highlight a counterintuitive strategy for those of you who have rapidly growing businesses! Sometimes it is actually better to NOT take a deduction at year-end and push it into next year. Sound blasphemous?... The reason you may want to consider pushing out that deduction is this: if you have a rapidly growing business, next year you may be in a higher tax bracket because your income is growing. So by pushing the deduction forward and not paying your expenses before year-end, you could (for example) forego a 12% deduction in exchange for taking a 24% deduction next year. That doubles your tax savings just by utilizing timing and different tax brackets! So while I generally preach taking as many deductions as possible to lower your tax bracket, there are indeed occasions where I will instead advise to pick UP additional income in the current year. Tag someone who owns a rapidly growing business!

Employees: Do you have a side hustle? While a side hustle can be a great way to generate additional income, a bonus perk is that it now makes you a BUSINESS OWNER in the eyes of the IRS. This means you can actually take deductions against that income for items you use in your side hustle business, like your cell phone, part of your car, and more.... If you have a side hustle let me know in the comments! If you don’t, and have been itching to start one but not sure what to dosend me a DM and we can discuss ideas! Or even better, text me directly at 916-249-1021! #sidehustle #smallbusiness #cpa