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When you started your company, you likely split responsibilities between yourself and a few trusted people. However, with every successful startup, there comes a time when a dedicated CFO is essential for the company to move forward.

If you’re considering bringing on an in-house CFO, you might understandably balk at the costs of recruitment, onboarding, and ongoing compensation. For a small to mid-sized company, hiring a full-time CFO isn’t always financially feasible, but there’s an alternative: an outsourced, fractional CFO.

For these companies, working with an outsourced CFO is almost always more affordable, and it’s likely to deliver a better ROI, too. Here’s a closer look at some of the main reasons fractional CFOs are more cost-effective.

Most Outsourced CFOs Take a Pay-as-You-Go Approach

When you hire an in-house CFO, you’re committing to paying a full-time executive salary. For very large, established companies, this ongoing expense may not be an issue. 

However, smaller, growing companies often don’t have the capital to pay a full-time salary, and that’s a major part of why so many turn to outsourced CFOs. Outsourced CFOs typically offer more flexible payment and engagement models:

• Monthly retainers
• Payment by the hour
• Project-based pay

With an outsourced CFO, you only pay when you need advice or help with a project. This feature is especially helpful for growing companies. If you need more help from your CFO as your business evolves, they will likely be able to accommodate you.

You Don’t Have to Cover an Ongoing Salary and Benefits

This is one of the most significant benefits of working with an outsourced CFO. The average CFO salary is almost $140,000, and it’s not unusual for CFOs at large companies to make more than $1 million.

Covering the base salary alone can be a challenge for smaller or newer companies, but executive compensation packages almost always come with benefits (like health insurance) and various kinds of equity-based compensation.

Working with an outsourced CFO costs considerably less, and it’s also far less complicated. Instead of trying to put together a compensation package to attract qualified candidates, your company just needs to agree to your fractional CFO’s fee schedule.

You Can Make Each Dollar Count

Your outsourced CFO isn’t with your company on a daily basis. So when you do meet with them or ask for their help with a project, you’ll likely be focusing on high-impact, meaningful work. For instance, you might ask your CFO to create a cash-flow forecast or develop KPIs for the coming fiscal year. 

Because you’re only paying your CFO to work on critical efforts, your ROI will likely be far greater than it would be if you’d hired a full-time CFO. You aren’t just investing in an executive — you’re putting your money toward tangible results.

Recruitment Is Far Less Expensive

If you’ve been weighing the benefits of hiring a full-time CFO versus an outsourced one, you already know that the difference in pay is stark. However, you may not have considered the additional cost of an executive search.

Looking for a company executive is an extremely time- and resource-intensive process, and most businesses choose to hire an executive search firm. These firms usually charge about 20% to 30% of the executive’s first-year salary. Once the firm has found a suitable CFO, your company must still cover the cost of onboarding.

The price of finding an outsourced CFO is a small fraction of the total cost of recruiting an in-house executive. Outsourced CFOs can typically jump in and get started right away, so the time and money spent on onboarding is minimal.

Ready to Find Your Fractional CFO?

The larger a company grows, the more complex its finances become. If your business is in need of a financial professional to guide it into the next chapter, Zabel & Co. is here to help. 

When you work with us, our experienced team will help you find strategic, customized financial advice that fits your budget. If you think your company could benefit from an outsourced CFO, get in touch with us to start a conversation today.

People are using artificial intelligence for just about everything these days, including tax prep. According to Salesforce, AI agents could save people up to 62% on tax filing time. While cutting your filing time in half sounds great, cutting the wrong corners could cost you money — or worse, leave you facing an audit.  

Here’s a look at what you can use AI for and what you should leave to the tax professionals.

Where AI Can Help With Taxes

AI-powered tools are getting better at automating repetitive tasks and providing quick answers to common questions. If used wisely, they can simplify some tax prep workflows, especially if you are filing personal or small business taxes. 

Here are some instances where you may be able to use AI.

Organizing Financial Documents

AI-powered software can automatically scan receipts and categorize expenses. It can also match transactions with specific accounts. This can save you a lot of time when closing out the year or prepping for an audit. 

Helping Fill in Basic Tax Forms

Some platforms use AI to fill in standard IRS forms based on the documents you upload, such as W-2 forms. These tools aren’t always foolproof, though, and you should always confirm what they input. However, they are accurate enough to speed up tax prep for W-2 filers with straightforward returns. 

Calculating Estimated Taxes

Sophisticated AI tools can analyze income trends and predict quarterly tax payments. If you are a freelancer, gig worker, or small business owner, AI-powered forecasting tools could help you avoid underpayment penalties and set aside enough cash for taxes. 

Identifying Potential Deductions

AI algorithms can flag common deductions based on your income, expenses, and industry. While they don’t replace professional advice, you can use them to create a helpful checklist. 

Tracking Down Answers to IRS FAQs

Many AI tax chatbots pull information from IRS.gov to answer general questions about deadlines, deductions, or filing rules. These bots help you avoid the hassle of tracking down the information yourself. 

Where to Avoid Using AI for Tax Decisions

Despite these benefits, there are major limitations to AI that you should understand.

Do Not Trust AI to Apply the Tax Code Correctly

There are thousands of pages of rules, exceptions, and interpretations in the U.S. tax code. AI tools can misunderstand these rules and fail to apply them correctly to your personal or business tax situation. When you add state taxes to the mix, things get even messier. 

Do Not Rely on Chatbots for Tax Strategy

Chatbots can answer general questions, but they’re not CPAs. They won’t know your business situation, retirement plans, or long-term financial goals. And they certainly won’t optimize around them. 

Do Not Assume All AI Tools Are Secure

If you use an AI tool to help with your taxes, you may have to give it access to sensitive financial data. Not all of these tools are compliant with IRS security standards or have safeguards in place for data breaches. Before uploading anything, check the provider’s privacy policy and encryption protocols. 

Do Not Use AI for Amended Returns or Complex Filings

If you’re filing an amended return, dealing with a multistate income situation, or responding to the IRS, skip the bots. These situations require direct communication with an experienced tax professional. 

Do Not File Business Taxes Without Oversight

Even with the help of AI, filing business taxes requires professional review. Issues like depreciation schedules and shareholder distributions are far too complex for automated software to handle alone.  

Tips for Using AI Safely During Tax Season

If you plan to incorporate artificial intelligence into your tax prep this season, make sure you:

• Choose a reputable platform
• Verify AI recommendations with a tax pro
• Be cautious about handing over your personal data
• Use AI to prep, but not to file

When in doubt, use AI to gather some preliminary information. Then, meet with a tax professional before filing with the IRS. 

Don’t Overrely on AI — Turn to Trusted Tax Pros

At Zabel & Co., we have the expertise necessary to help you file your taxes accurately and properly apply state and federal tax codes. Our tax planning and preparation services can be tailored to individuals, businesses, and nonprofits. 

If you’re thinking about using AI to manage parts of your taxes, or if you already have and want a second opinion, we can confirm that your forms are accurate and that you’ve taken full advantage of all opportunities to save money. 

Schedule a consultation with our team today. 

A mid-year financial checkup can give you the chance to pause, reflect on the first half of the year, and make prudent adjustments for the months ahead. Businesses that make this kind of review a regular habit often handle challenges more effectively and move faster when new opportunities arise.

This post will break down why mid-year financial check-ins matter and highlight the key areas you should review during this important checkup.

Inventory Management

If products sit on the shelves too long, they can quietly drain your cash and reduce your profits. A mid-year review is therefore a good time to take a closer look at how much stock you’re carrying, how quickly items are selling, and how often you’re placing orders.

For example, if you’re ordering too much, that money could be better used elsewhere, like paying down debt or funding new projects. On the flip side, if you’re constantly running out of key items, you could be missing sales and frustrating your customers.

A few smart changes, like adjusting reorder points, cutting back on slow sellers, or matching your orders more closely to actual demand, can free up cash and keep your operations running smoothly. Faster inventory turnover means more money available for the things that help your business grow.

Cash Flow Optimization

Keeping your cash flow healthy means planning ahead. With the help of qualified financial advisors, you can build rolling projections that extend several weeks or even months into the future. These forecasts show when money is expected to come in and go out so you can spot potential issues before they happen.

If you see a cash shortfall coming, you’ll have time to take action, such as: 

• Encouraging faster customer payments
• Working out better payment terms with suppliers
• Setting up a short-term loan

Making changes early rather than reacting at the last minute allows you to stay in control. This kind of planning can help ensure that you can cover your bills and also have cash available for new opportunities in the second half of the year.

Debt Management

Mid-year is a good time to take a fresh look at all the debt your business carries, from credit lines and equipment financing to mortgages and credit‐card balances. Your Fractional CFO can help you review each loan’s interest rate, payment schedule, and effect on your cash flow. This kind of review often uncovers ways to save money.

For example, you might be able to refinance a loan at a lower interest rate, combine a few debts into one easier payment, or focus on paying off the most expensive debt first. In some situations, keeping low-interest debt and using your cash for something with a better return, like growing the business or building up savings, can be a sensible move. 

Instead of just thinking about debt as something to get rid of, it can help to think of it as part of your overall strategy. Managing your debt wisely can support your organization’s financial health and long-term growth.

Tax-Planning Considerations

After the halfway point, you’ll be in a better position to look at your taxes while there’s still time to make strategic moves to lower your bill. This is also the time to explore any tax deductions and credits your business might qualify for, both at the federal and state levels. Some of these benefits are easy to miss if you wait until the end of the year.

Other helpful mid-year tax strategies include:

• Deciding when to record income or expenses for the best tax savings
• Reviewing how your business handles depreciation on things like equipment
• Making sure your estimated tax payments are on track

Getting ahead on tax planning now can help you avoid surprises later and may even save your business money before the year ends.

Partner With Trusted Professionals to Drive Profit and Find Clarity

As your company grows, managing the financial side of things becomes more complex and more critical. That’s where Zabel & Co can step in.

As your Outsourced CFO, we can help you understand your margins, improve your cash flow, eliminate unnecessary spending, and position your business for sustainable growth. To learn more about how we can support your goals, contact us today.

According to a 2024 survey, 86% of controllers believe their roles will change within the next five years. Of those who expect changes, more than 25% believe that adapting to their new work will require different skill sets. 

The role of financial controllers is forever evolving, especially for small to mid-sized businesses. They are no longer just the gatekeepers of financial records. Controllers are becoming strategic partners who use technology and data to fuel business growth. 

Here’s a look at how the role is changing and how you can adapt with the support of fractional CFO services. 

From Bookkeepers to Strategic Leaders

Historically, financial controllers focused on maintaining accurate books and overseeing budgets. Today, their role is expanding to include strategic decision-making. Controllers are now expected to analyze financial data to uncover insights that inform long-term business strategies.

For small to mid-sized businesses, this shift is critical, as controllers help translate raw numbers into actionable plans. By partnering with fractional CFOs, controllers provide the detailed financial oversight that complements high-level strategy, ensuring businesses can scale efficiently without sacrificing accuracy. 

Embracing Technology and Automation

The role of the controller isn’t the only thing changing. Their toolkit is evolving, too. Tools like AI-driven analytics and cloud-based platforms, such as NetSuite, are automating routine tasks like financial reporting and payroll. While these resources can equip controllers with deeper insights, they also require new responsibilities. 

With that in mind, the next generation of controllers needs to be open to learning new technologies and rethinking old ways of doing things. Leaning into innovative tech tools will help financial professionals adapt to the changing environment and deliver timely, relevant guidance to the C-suite. 

For small businesses, adopting these tools means controllers can deliver real-time insights without the overhead of a full-time CFO. Controllers are already using AI to predict financial trends to help their businesses stay ahead of market shifts. 

Data Analytics as a Core Skill

The modern controller wears multiple hats, including that of a data analyst. With access to advanced analytics, controllers can identify trends and assess risks. They can also recommend cost-saving measures. 

For example, a controller might analyze cash flow patterns to optimize working capital, a critical need for mid-sized firms navigating growth. This data-driven approach aligns with the strategic goals of fractional CFOs, who rely on controllers to provide accurate, actionable data. 

Addressing Compliance and Risk

Compliance remains an important part of the controller’s role, but it is becoming more complex. Controllers must stay updated on evolving regulations, such as tax laws and data privacy standards.

The good news is that adopting new tools will give controllers more time to focus on compliance and risk mitigation. Smart solutions with built-in compliance guardrails can reduce an organization’s risk of violations and help businesses avoid costly errors. 

Collaborating With Fractional CFOs

Chief financial officers are tasked with focusing on long-term strategy and big picture goals. On the other hand, controllers manage day-to-day operational details. Balancing these roles is especially important for businesses that rely on fractional CFO services. 

Your business can strike this balance by choosing the right service provider and supporting the controller in their day-to-day activities. When enlisting the services of a fractional CFO, be sure to involve your controller in the selection process. After all, they will be the one who is impacted the most. 

How to Adjust to the New Landscape 

The future of financial controllers is bright but demanding. As businesses face economic uncertainty and rapid technological advancements, controllers must adapt. They need to master new tools and embrace strategic roles. 

For small to mid-sized firms, this change means that controllers are no longer just number-crunchers; they are vital to driving profitability and growth. Controllers must stay agile and data-savvy as they step into their redefined roles. 

Take Control of Your Financial Future 

The role of controllers is changing, and there’s no turning back. The question is, what will you do to make sure your controller is prepared? At Zabel & Co, we provide fractional CFO services and other bespoke growth and profitability solutions to help our clients thrive. Let our team prepare you for the future of finance with a fractional CFO. Contact us to schedule a consultation.

For companies looking for top-level financial leadership without the need to hire a full-time executive, a fractional CFO is the perfect fit. 

The fractional model enables you to hire an experienced financial strategist on a part-time contract. This expert can guide your strategy, find savings, and fuel growth, all for a fraction of a full‑time executive salary. Learn how hiring a fractional CFO works and what they can do for your company.

The Role of a Fractional CFO

Unlike a traditional CFO who dedicates every workday to one company, a fractional CFO splits their time among several clients. 

Each of these clients can tap into the CFO’s high‑level financial leadership without paying a full‑time salary. Instead, they pay only for the time they actually need. For example, you might bring your CFO in for a key project, a short‑term challenge, or a weekly strategy session.

Typically, a fractional CFO lends their services on a set schedule; you might agree to partner with them for a few days each month or a handful of hours each week. During this time, they contribute their deep experience in planning, forecasting, and growth strategies in your industry. 

How a Fractional CFO Can Help Your Company

Even on a part‑time schedule, fractional CFOs bring senior‑level know‑how and the skills to drive real results. 

Like a traditional CFO, a fractional CFO shapes your financial direction. If you pick the wrong fit, you could miss critical opportunities. To get the most out of this hire, try to identify the financial gaps in your startup. This might be cash flow, cost control, or strategic forecasting. When your objectives are specific, you’ll know exactly what to look for during interviews. 

Once you’ve set those priorities, a fractional CFO can help you:

• Assess funding options, from bank loans to investor capital
• Maintain accurate, compliant financial reporting
• Keep cash flowing and safeguard liquidity
• Uncover cost‑saving opportunities and boost margins
• Develop budgets and long‑term financial plans
• Build financial controls and governance structures
• Advise marketing, product, and other teams on the financial implications of initiatives
• Provide board‑ready analysis to support key decisions

You might ask your fractional CFO to tackle several financial areas at once. That requires setting clear priorities with a schedule that fits your needs. As your financial strategist focuses on these priorities, you can make real progress.

Fractional engagement also carries less risk than a full-time hire. While your fractional CFO works to solve today’s challenges, you’ll identify the exact skills to look for when it’s time to bring on a full-time CFO.

When to Consider Hiring a Fractional CFO

Most companies don’t need a full‑time CFO until revenue reaches a substantial threshold. In the early phases, you and your core team can address budgeting, reporting, and cash-flow tasks. A fractional CFO at that stage can provide you with senior-level guidance on the same tasks without the cost of a full hire.

If you’re undergoing rapid expansion, it’s difficult to forecast revenue and control expenses. In that stage, a part‑time financial leader can help you steer growth without breaking your budget.

These scenarios may also warrant hiring a fractional CFO:

• Gearing Up for an Investment Round, Merger, or Buyout: A fractional CFO can help you with valuations, forecasts, and due diligence
• Facing Unpredictable Cash Flow: Your CFO can find leaks and set up fixes that steady the ship
• Struggling With Inadequate Accounting Tools and Reports: Your CFO can build a more robust financial framework

A fractional CFO can help you scale smartly, giving you expert support and a clear view of what you might need when you are ready for a permanent CFO.

Drive Your Growth With Expert Financial Help

You deserve to grow your business on your own terms. At Zabel & Co., we give you hands‑on guidance so you can accomplish your goals.  

With over 30 years of experience, we work alongside you, offering clear action plans, regular check‑ins, and honest feedback. We help your company scale sustainably, making sure that you have time for what matters most in your life. Contact us today. 

Planning your business exit is a pivotal decision that requires careful consideration and years of preparation. Engaging an exit planning partner well in advance can enhance the value of your business and help you navigate the transition. Here’s why sooner is better when it comes to exit planning. 

Why You Should Engage in Early Exit Planning

Exit planning is not as simple as deciding to sell or transfer ownership. This comprehensive process aligns your personal, financial, and business goals to facilitate a smooth transition. Starting early allows you to:

Maximize Business Value

If you know you are planning to sell your business in approximately five years, you can make decisions that will maximize its value. The goal is to make it more attractive to potential buyers. Changing the business structure or filing for trademarks are a few simple ways to improve the value of the company. 

Address Operational Inefficiencies

Early planning provides a chance to find and fix any operational issues that could deter prospective buyers. To you, the business is a labor of love. However, potential buyers are purely looking at the financial repercussions of the transaction. Glaring inefficiencies may make them question the long-term ROI of the deal. 

Ensure Financial Preparedness

Remember, you won’t have that recurring income after you exit the business. Have you prepared to live without it? A longer runway also gives you time to address your post-exit financial goals. 

Develop a Succession Plan

Time allows you to mentor successors and put leadership in place to promote business continuity after your exit. Potential buyers want to know that your company is stable, even if you step away. That requires strong mid-level and top-level leaders. 

What Does an Exit Planning Partner Do?

An exit planning partner brings specialized expertise to help you navigate the complexities of transitioning out of your business. A partner like Zabel & Co. will:

• Create a tailored exit strategy that capitalizes on market conditions
• Evaluate your company’s financial health and implement measures to enhance its value
• Identify potential risks and develop strategies to address them
• Collaborate with legal and tax advisors to ensure a smooth sale

The key is to find a hands-on partner who has the requisite experience and resources. Zabel & Co. has assisted with numerous business departures and can create a plan that aligns with your unique needs. 

Assess Your Readiness

Are you ready to step away from your business? There are plenty of great resources to assess your readiness.

The Freedom Point quiz provides you with a Freedom Score. Once you complete the quiz, you’ll receive a free report and score, which evaluates whether selling your business will yield enough income to live on for the rest of your life. 

You should also download The Exit Checklist, which provides five steps to ensure a happy (and lucrative) departure from your company. The guide helps you leave your business with plenty of cash (and without regrets). 

Internal Considerations

Leaving your business is about much more than dollars and cents. Some other factors you should consider include the following:

• Are you ready to step away?
• Do you have plans post-exit?
• Is your business performing at its peak?
• Is the current market favorable for a business sale?

Reflecting on these questions can help assess your readiness and time your exit. If you aren’t ready quite yet, remember — it’s never too early to start planning for your eventual departure. 

Ready to Begin Your Exit Planning Journey? 

Initiating the exit planning process at least five years before you intend to walk away can maximize the value of your business. If that window has already passed, it’s not too late to implement an exit plan. Partnering with an experienced exit planning advisor helps you address the intricacies of the transition while securing a prosperous future post-exit. 

At Zabel & Co., we specialize in guiding business owners through the intricacies of exit planning. Our tailored strategies are designed to align with your unique objectives and ensure that the transition meets your personal and financial goals. Contact us today to schedule a consultation.

The world of bookkeeping can be confusing, especially for small business owners who are just getting started. From knowing the difference between accounts payable and accounts receivable to understanding which receipts should and shouldn’t be included in your ledger to even understanding what a ledger is, bookkeeping can be overwhelming. 

Fortunately, many small business owners can adopt better bookkeeping practices by following three simple steps. These steps will go a long way in making your business run more efficiently, and they will make it easier for accountants to figure out the books come income tax season.

So what are the three tips for better bookkeeping — and, by extension, financial business success, regardless of your specific industry? 

1. Separate Business and Personal Finances

Mixing business with pleasure isn’t a good idea in your personal life, and it isn’t a good idea in your professional life. While this can be a mistake that small businesses make — that is, they make no delineation between what expenses the business incurred and what expenses the person who runs the business incurred — it can be detrimental to the financial health of the business in the long run. 

Separating personal expenses from business expenses makes it easier to track your business’s cash flow and makes your accounting more efficient. Additionally, it allows you to take advantage of all the tax deductions and benefits available to your business. 

Furthermore, separating business and personal finances will also shield your personal assets (such as your home and car) from legal liability in the event of a lawsuit. 

2. Follow Generally Accepted Accounting Principles (or GAAP)

If your company is publicly traded, you are already aware of the Generally Accepted Accounting Principles (or GAAP) as required by the Securities and Exchange Commission (SEC). You may also know the International Financial Reporting Standards (IFRS).

Both practices are merely standardized methods of financial reporting. They ensure that businesses beholden to investors follow a centralized rubric, which avoids financial disasters, especially when dealing with businesses in the foreign sector. 

Your company doesn’t need to be publicly traded in order for you to understand the importance of following a centralized rubric. This will minimize confusion for third-party accountants (those who are independent firms, not directly employed by your company).

3. Always Maintain Common Financial Reports

Regardless of your company’s industry, every business must maintain three standard financial reports:

• Income Statement: This is the “master sheet” of all the company’s revenue streams, profits, and losses over a designated period (usually one quarter or three months)
• Balance Sheet: This is a sheet of a company’s profits and losses over a given day
• Cash Flow Statement: This statement records all of the cash coming into and out of your business over a designated period (usually one quarter or three months)

Potential investors need these three standard financial reports before investing in your business. Accountants can often handle your taxes with just these three bits of information, provided the information is reported correctly.

Bonus Tip: Use a Software System to Keep Track of Your Finances

Before computers were commonplace, small business owners tracked their finances manually. This labor-intensive process had more than its fair share of human error.

Today, however, no small business is complete without a sound software system that allows you to keep track of your finances efficiently and effectively. This will also benefit your accountant, who can reduce the likelihood of human error with computer-generated read-outs of your company’s financial situation.

Let Zabel & Co. Handle Your Accounting Needs

We know you have your share of accountants to choose from for your business. However, selecting an accounting firm like Zabel & Co. to handle your needs will put your business’s accounting in trustworthy hands. We have decades of experience helping businesses like yours and will happily help you, too.

Contact us today to learn how we can help your small business reach its financial goals. Schedule an appointment with one of our experienced accounting professionals, and let’s put your company’s funds to work for you.

As tax season gets underway, high-earning individuals search for ways to limit their exposure and reduce their taxable income. Some of the ways of doing so — like underreporting earnings or improperly writing off business deductions — are ethically questionable at best and illegal at worst. However, there’s no need to risk the attention of the IRS if you want to reduce your taxable income.

High-earning taxpayers have a few options for minimizing their tax exposure and even generating long-term financial benefits. Here, we’ll explore three of the more effective, totally legal strategies that can help lower your tax bill on April 15.

Open an HSA

One of the most powerful savings vehicles that high-earning workers have for capping their taxable income is a health savings account (HSA). Available to those with high-deductible health plans, an HSA can offer a triple tax advantage. Contributions to an HSA are tax-deductible, and its investments can provide tax-free growth. Withdrawn funds for approved medical expenses are not taxed.

Unlike other flexible spending accounts (FSAs), the funds in an HSA roll over every year. You’ll never lose them, even if your employment situation changes. Most other FSAs have a “use-it-or-lose-it” requirement — you must spend the money before the end of the year. But as long as you spend HSA funds on approved medical or health expenses, your contributions stay intact.

The 2024 maximum contribution limits to HSAs are $4,150 for individuals, $8,300 for families, and an additional $1,000 in make-up payments for those over 55 years of age. If you haven’t yet maxed out your HSA contributions for last year, you can do so between now and April 15 and still have the funds applied to your 2024 limits. (You can also start 2025 contributions anytime.)

Funds in an HSA cover a broad range of qualified medical expenses. These can include copays and deductibles, prescriptions, treatments, dental and vision care, and medical supplies or equipment. You can reduce your taxable income while taking proper care of your family’s health.

Fund a 529 Plan

It’s getting more expensive by the year to fund a college education. In the 2024-25 tuition year, the average annual costs for an in-state public college work out to about $24,030. Private four-year colleges can cost more than double that amount. But if you start early, you may be able to get some tax help by opening a 529 plan for your children, grandchildren, or other benefactors.

A 529 plan is an investment vehicle specifically aimed at saving for college. The tax advantages the plan offers vary from state to state, although contributions are not federally deductible. However, the most common benefits are tax-free investment growth and withdrawals for approved education expenses.

Contributions to a 529 fund aren’t subject to annual limits and can count as gifts toward estate tax purposes. The IRS even allows you to make a lump-sum gift of $95,000 to a 529 fund — you can spread this out across five years without incurring a gift tax. The fund can also generate earnings in the form of compound interest. 

Consider Tax Residency Planning

Although all Americans are subject to federal taxation, residents in certain U.S. states enjoy more favorable tax statuses than others. 

A handful of states — notably Florida, Nevada, Texas, Tennessee, and a few others — do not charge state income tax on wages or retirement income. Wyoming, Florida, and Nevada also have low or more moderate property taxes.

To take advantage of these states’ relaxed tax rules, new residents must establish their new state as their “domicile,” or where they intend to live permanently. Alternatively, they can be considered a “statutory resident” if they stay at least half of the year in the same place. Residents must take certain actions to back up their domicile status, like registering to vote or obtaining a state driver’s license.

Keep in mind that although some states offer total relief from income tax, they may impose property and estate taxes on individuals. 

Consult With a Professional

At Zabel & Co., we can help you find legitimate, legal ways to reduce your taxable income. To learn more or schedule a free consultation, get in touch with us using our online contact form.

When running your business, you cover a lot of ground, from meeting with clients and managing employees to marketing your products and services. Making money keeps the doors open, but managing the financial side of your business might take a back seat to other responsibilities.

That’s where your certified public accountant (CPA) can become your trusted partner. While you remain focused on daily operations, your CPA can help you get the most out of your business while helping limit your tax liability.

But how can you feel confident that you’re getting the most from your CPA and business? Get the ball rolling by asking your CPA these seven key questions.

What Can a CPA Do for a Business?

If you only think about your CPA during tax season, you’re not taking full advantage of what a good CPA brings to the table and how your business could benefit. A CPA is far more than the person who completes and files your taxes. 

A CPA can offer crucial guidance in several important areas. They can help you with things like tax law, financial planning, and regulatory compliance, aiding your business in meeting its legal requirements as it grows.

7 Questions for Your CPA

Whether you already have or want to hire a CPA, asking questions and maintaining clear communication are essential. Here are seven of the top questions to ask:

1. Do I Have the Right Business Structure?

The structure you select for your business can have a significant impact. Setting up as a sole proprietorship, limited liability company, or S or C corporation can affect tax liabilities, legal requirements, and operational efficiencies. Your CPA can analyze your situation and give advice on how to use your business structure to meet your goals.

2. Can You Help Manage My Cash Flow?

Businesses, both small and large, can struggle with cash flow. Your CPA has the knowledge to sift through financial information and recommend strategies for budgeting, investing, and financing to stabilize your business and set it on track for growth.

3. What Records Do I Need to Keep?

Your record-keeping is at the heart of keeping good books, preparing for tax season, and meeting other legal obligations. Your CPA can assist you in this key area by telling you the receipts, tax documents, bank statements, invoices, and other business documents that must be maintained. 

A CPA helps you establish a process. They can even recommend accounting software for keeping your records and books.

4. What Tax Laws and Other Regulations Should I Be Aware Of?

The tax laws and regulations that apply to your business can vary by industry and location. Laws and regulations are also ever-changing. Your CPA can guide you through the labyrinth of business regulations and tax laws to keep you aware of deadlines, tax obligations, and potential compliance issues.

5. How Can I Grow My Business?

You’re not giving up any control if you ask your accountant about growing your business — you’re helping yourself. Your accountant doesn’t engineer your products and services or market them.

Instead, through financial reporting, they can provide insights to help you gain and maintain profitability. Your CPA can identify key performance indicators, monitor your progress, and break down your financial data to support growth strategies. We offer a profit acceleration assessment to help you identify what might help you grow faster – reach out today for more details.

6. Can You Help Me Find Other Professionals?

An accountant who’s successfully remained in business typically works with many companies and has built a vast network of other professionals. Your CPA often can refer you to: 

• Trusted attorneys
• Business brokers
• Financial advisors
• Lenders 

With an accountant who knows your industry, you may get the bonus of connecting with other knowledgeable professionals.

7. What Will It Take to Exit My Business?

Retirement or just moving on may be far in the distance. However, planning your exit at the start of your business can set the strategic roadmap for growth. An accountant can help you value your company, revealing opportunities for improvement. 

You also can get a clear view of the tax implications. This helps you know that someone will be monitoring your tax situation as you move closer to leaving your business behind. We offer a business exit readiness assessment that will help you assess what needs to change within your organization to maximize the value upon your eventual exit. Send us an email and we will share it with you!

Find an Accountant With Zabel & Co.

An accountant on your team is more than a number cruncher; your CPA is a strategic partner. You can navigate financial matters, tax requirements, and regulatory compliance by openly communicating with your CPA, seeking regular updates, and understanding the impact an accountant can have on the success of your business.

At Zabel & Co., we are passionate about helping clients thrive now while working toward future goals. Call us today.

As a business owner, you are likely starting to prepare for your annual tax filings as the end of the year draws near. Your business filings may include federal income tax returns, state returns, and local returns, among other requirements that must be met to avoid interest payments and penalties.

The deadline for filing your business’s federal income tax for the 2024 tax year depends on the type of business you run, and you have other federal due dates to meet as a business as well, such as for estimated tax payments, payroll taxes, and W-2 forms.

It can be a lot to keep track of, even if you have dedicated team members to handle tax matters. Here’s what you need to know to stay on top of your business tax deadlines in 2025.

When Is Your Business Tax Return Deadline?

When you file your business tax return with the Internal Revenue Service (IRS) depends on your business’s structure and whether you report on a calendar or fiscal year. The IRS has different dates for C corporations, S corporations, partnerships, limited liability companies (LLCs), and sole proprietorships to file federal income tax returns.

Mark these dates on your business tax calendar:

• Partnerships and S Corporations on a Calendar Year: March 17, 2025
• C Corporation on a Calendar Year: April 15, 2025
• C Corporation on a Fiscal Year Ending October 31: February 18, 2025
• C Corporation on a Fiscal year Ending June 30: September 15, 2025
• Sole Proprietorship (Filed on Personal Income Tax Return): April 15, 2025
• LLCs (Elected to Be Taxed as One of the Above): Due date for selected taxation

These are only the filing dates for your business’s federal income tax return. If you operate in a state that collects income taxes, some state deadlines align with the federal filing dates. However, you may have other local and state business tax deadlines for sales, property, and excise taxes.

Federal income filing requirements often fall on the 15th of a month. However, if the 15th of the month is a federal holiday or a weekend, your business tax return may be due the following Monday.

Business Tax Filing in Disaster Situations

If your business operates in an area hit by a disaster, it’s important to know that the IRS typically grants a 60-day extension to disaster victims. The IRS can provide more information about the extended filing dates for businesses in disaster areas.

Filing Extensions for Your Business Taxes

If you can’t file the tax return for your business by the deadline, you may be able to get a six-month extension to file your return. It’s generally automatic, but you must file for it by your original filing date. 

For C corporations, S corporations, and partnerships, you must file Form 7004 by your original date to gain the extension. A sole proprietorship must file Form 4868. You can extend the date to file your return, but you will need to pay the taxes your business owes by the original due date.

Deadlines for Estimated Tax Payments From Businesses

Beyond when the federal income tax returns for your businesses are due, you also have deadlines for making estimated tax payments, depending on the structure of your business.

For example, if you’re a C corporation and expect to owe $500 or more in taxes, you generally are required to make estimated tax payments throughout the year. No estimated tax payments are required of S corporations or partnerships because income passes through to owners, who are taxed. However, if you expect to owe $1,000 or more in taxes, as an owner — including sole proprietorships — you must make estimated tax payments.

Here are the deadlines for your estimated tax payments for tax year 2025:

• C Corporations and Individual Business Owners: April 15, June 16, and September 15, 2025
• C Corporations: December 15, 2025
• Individual Business Owners: January 15, 2026

If you’re a business owner of an S corporation, partnership, or sole proprietorship, your final estimated tax payment for 2024 is January 15, 2025.

Find a Qualified Tax Accountant for Your Business

As a business owner, you fill many roles to stay on top of operating your business every day. Consider leaving your taxes to accountants who give you the confidence to focus on running your business. 

At Zabel & Co., we have more than 25 years of helping small businesses and nonprofits meet their obligations for filings through tax accounting. Our comprehensive business advisors are committed to the future of your business and your life. Call us today.