Keep Your Tax Bill As Low as Legally Possible: Only You Can Prevent Undue Tax Burdens
Reading the pulse of your business is essential to understanding you business information. Raw data, managed properly can do much to create relevant management financial information that a business owner can use to make corrective decisions, maximize efforts/efficiencies and to gain a competitive advantage in the marketplace. The below is a sample of the correspondence that we might utilize to assist business owners in ensuring that good financial information is both procured and utilized.
Survival Tips
Repay the $50,000 of Shareholder Loans to the Company ASAP. I suggest never taking monies out of the business that might impair the company’s going concern status or that the business might ever need back to continue operation and to pay its just debts.
Substantially reduce all Owners Payroll until positive financial results can be achieved, and all operating losses eliminated.
Cease all Shareholder Distributions/Loans to Employees, until cash balances exceed the amount of Unearned Customer Deposits. This will preclude the false illusion of taking out monies out of the business when cash appears “flush”, when otherwise in reality one would be taking monies out of the business that have not yet been earned.
Change Pricing Structure to obtain a 20% Gross Margin, at a minimum today with the ultimate goal of a 35% Gross Margin by 9-30-10.
Final Thoughts
In the event that the above Survival Tips are not feasible/possible, that you close Business ASAP to mitigate further losses, capital erosion and future debt acquisition.
Atlanta Part-Time Virtual CFO
http://www.youtube.com/watch?v=ZDEgIDuDv_g&feature=mfu_in_order&list=UL
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