Skip to content
entrepreneur-asian-businessman-businesswoman-discussing-new-business-project-tablet-modern-meeting-modern-office-asian-business-casual-concept
BusinessEricha Eberhart

The Importance of Proper Financial Planning Before Selling Your Business

The Importance of Proper Financial Planning Before Selling Your Business

Planning to sell your business is a significant decision that requires meticulous preparation, particularly in the financial realm. Proper financial planning is vital to ensure a smooth and successful transition and to maximize the value of your business. Keystone CPAs, with their deep understanding of the critical role that financial planning plays in selling a business, are here to offer essential tips that will guide you through this important phase, instilling confidence in your financial planning.

Understanding the Value of Your Business: As a business owner, your role is crucial in preparing to sell your business. One of the initial steps is obtaining a comprehensive understanding of its value. Keystone CPAs advise engaging in a thorough business valuation to accurately assess the worth of your company. This assessment, in which you play a crucial part, will serve as a foundation for setting a realistic selling price and understanding potential areas for improvement to enhance the value of your business. Financial Documentation and Reporting: Organized and accurate financial documentation is essential when selling your business. Keystone CPAs emphasize the importance of maintaining detailed financial records and reports to provide prospective buyers with a clear and transparent insight into your company’s economic health and performance. This includes financial statements, tax records, profit and loss statements, and other pertinent financial documents.

Tax Planning and Optimization: Proper tax planning is crucial when selling a business. Keystone CPAs advise business owners to engage in tax optimization strategies to minimize tax liabilities and maximize the after-tax proceeds from the sale. Understanding the tax implications of the sale and implementing tax-efficient strategies can significantly impact the financial outcome of the transaction.

Financial Forecasting and Projections: Prior to selling your business, creating detailed financial forecasts and projections can be invaluable in demonstrating the future potential and profitability of your company to potential buyers. Keystone CPAs recommends preparing realistic and data-driven financial projections that align with the growth trajectory of your business, providing a compelling case for its future success. This forward-looking approach can instill a sense of hope and optimism in the business owner.

Exit Strategy and Succession Planning: Crafting a well-defined exit strategy and succession plan is fundamental to proper financial planning before selling your business. Keystone CPAs stress the importance of outlining a clear path for the transition of ownership and leadership, ensuring a seamless transfer of control and responsibilities.

In conclusion, selling a business demands meticulous financial planning and strategic decision-making. Keystone CPAs understand the complexities involved in this endeavor and offer invaluable guidance to business owners embarking on this important journey. By leveraging their expertise and following these essential tips, business owners can navigate the financial aspects of the sale with confidence, ultimately achieving a successful outcome.

Keystone CPAs stand ready to assist business owners in achieving their financial objectives. Contact us today to learn more about preparing your business for a successful sale.

old-lady-posing-workdesk-home
RetirementEricha Eberhart

Financial Planning Insights for Business Owners Transitioning from Business Ownership to Retirement

Financial Planning Insights for Business Owners Transitioning from Business Ownership to Retirement

The decision to sell your business marks the beginning of a new chapter in your life as a business owner. Transitioning from business ownership to retirement entails a significant shift, particularly in financial planning. Post-sale, it becomes crucial to assess your financial readiness for retirement and ensure a secure and stable future for you and your loved ones. Keystone CPAs understand the intricacies of this transition and offer invaluable financial planning insights for business owners preparing for retirement after selling their businesses.

  1. Evaluating Your Financial Position: Following the sale of your business, it is essential to assess your current financial position. Keystone CPAs advise thoroughly assessing your assets, liabilities, investments, and retirement accounts to gain a comprehensive understanding of your financial standing. This evaluation forms the foundation for developing a personalized retirement plan tailored to your needs and goals.

  2. Retirement Income Planning: Planning for a reliable and sustainable retirement income stream is crucial for business owners post-sale. Keystone CPAs emphasize the importance of developing a diversified income strategy, which may include pensions, retirement accounts, investment income, and potential annuities. Understanding the tax implications of different income sources is also essential in optimizing your retirement income.

  3. Wealth Preservation and Estate Planning: As you retire, preserving and safeguarding your accumulated wealth becomes paramount. Keystone CPAs underscore the significance of comprehensive estate planning, including strategies for wealth preservation, asset protection, and the efficient transfer of assets to future generations. Establishing a well-crafted estate plan ensures your financial legacy is managed and distributed according to your wishes.

  4. Long-Term Healthcare and Insurance: Planning for potential healthcare expenses in retirement is a critical component of post-sale financial planning. Keystone CPAs recommend exploring long-term care insurance options and evaluating healthcare coverage to mitigate the impact of medical costs on your retirement savings. Understanding the role of Medicare, supplemental insurance, and other healthcare provisions is essential in achieving comprehensive retirement readiness.

  5. Investment and Portfolio Management: Managing your investment portfolio post-sale is integral to sustaining your financial well-being in retirement. Keystone CPAs advocate for a balanced, diversified investment approach tailored to your risk tolerance and retirement timeline. By revisiting your investment strategy and risk management, you can align your portfolio with your retirement objectives in a prudent and informed manner.

The transition from business ownership to retirement represents a significant financial milestone that necessitates comprehensive and strategic planning. Keystone CPAs is dedicated to providing business owners with vital financial insights to navigate this transition confidently. By leveraging their expertise and following these essential financial planning principles, business owners can embark on the next phase of their lives with a solid foundation for retirement readiness.

Keystone CPAs stand ready to assist business owners in achieving their retirement objectives. Contact us today to learn more about navigating the financial landscape post-sale and ensuring a secure retirement future.

golden-sunlight-bathes-open-file-cabinet-warm-inviting-office
Business, TaxesEricha Eberhart

How Long Should You Keep Your Tax Records?

How Long Should You Keep Your Tax Records?

Attention tax filers! How long should you keep your tax records? While the standard rule of thumb is to retain tax documents for at least three years, it’s essential to know that the IRS can return to SIX years during an audit for underreported income or fraud.

It’s crucial to keep your tax records safe and sound for at least six years to ensure compliance and stay on the IRS’s good side. Failure to maintain sufficient documentation could lead to complications in the event of an audit.


At Keystone CPAs, we understand the importance of record-keeping and its impact on tax obligations. By adhering to the six-year recommendation, you can mitigate risks and demonstrate transparency in your financial affairs.

Remember, when it comes to tax records, it’s better to be safe than sorry. Stay organized, keep track of your documents, and consult with tax professionals like Keystone CPAs to ensure you’re well-prepared for any potential IRS inquiries. And always remember, the six-year rule is not just a suggestion, it’s a crucial part of tax compliance.

For expert guidance on tax preparation, compliance, and record-keeping best practices, look no further than Keystone CPAs. We’re here to assist you every step of the way, ensuring you’re well-prepared for any potential IRS inquiries. Reach out to us today to learn more about how we can help you navigate the complexities of tax obligations and financial responsibilities.

#TaxTips #RecordKeeping #IRSCompliance

 

american-elections-vote
FinanceEricha Eberhart

How Presidential Elections Can Impact Americans’ Everyday Finances

How Presidential Elections Can Impact Americans' Everyday Finances

With every presidential election, the United States undergoes a significant event that has ripple effects across the globe. While politics may feel distant to many, the outcomes of these elections can profoundly impact the everyday economy of Americans, influencing job security, market stability, taxes, healthcare costs, and consumer prices. As the expert financial advisor team with Keystone CPAS, has witnessed firsthand how political shifts can translate into tangible economic changes for individuals and families. In this blog post, we will explore the immediate impact of presidential elections on Americans’ finances and provide tips for financially preparing yourself for potential changes.

The Immediate Impact

Market Volatility

Market volatility is one of the most immediate and visible effects of U.S. elections. The uncertainties surrounding political outcomes can lead to significant fluctuations in financial markets, making investors and retirees concerned about their portfolios. With the help of a financial advisor, we can provide reassurance and a long-term perspective, emphasizing the importance of staying the course despite short-term market turbulence.


Policy Changes

Taxes and Spending

Elections determine not only who occupies the White House but also the legislative agenda, which can lead to significant policy changes with financial implications. For example, the Tax Cuts and Jobs Act of 2017 lowered tax rates for many Americans, benefiting small-business owners. However, it’s essential to consider the long-term impacts of such changes and how they may affect the national debt, public services, and potential future tax hikes.

Employment And Wages

Different administrations prioritize different sectors, influencing job creation and wage growth. For example, policies focusing on renewable energy or traditional energy sources can impact job prospects in these sectors.

Healthcare Costs

Changes in healthcare legislation can have widespread effects on household budgets. Policies such as the Affordable Care Act had varying impacts on individuals, as experienced by my client Lisa, who benefited from affordable health insurance but also faced uncertainties.

Trade Policies and Consumer Prices

Trade policies enacted by a president can directly influence consumer prices, as seen during the trade war with China, which led to higher tariffs on products and impacted household budgets.

Preparing For Election Outcomes

Given the potential economic impact of elections, it’s vital to prepare for potential changes. At Keystone CPA’s, we recommend the following strategies:

  1. Stay informed: Understand the candidates’ policies and how they might affect your finances. Knowledge is power, so being informed allows for better planning.

  2. Diversify investments: A well-diversified portfolio can better withstand economic shifts and mitigate risks associated with market volatility and policy changes.

  3. Build an emergency fund: Having a financial cushion is essential, especially during uncertain times. Aim for at least six months’ expenses in a readily accessible account.

  4. Review and adjust budgets: Regularly review your budget to account for changes in taxes, healthcare costs, and consumer prices.

  5. Seek professional advice: Your financial advisor can provide personalized guidance tailored to your unique situation and goals, helping you navigate complex economic landscapes and make informed decisions.

Conclusion

U.S. elections can profoundly impact the everyday economy, influencing everything from market stability and employment to healthcare costs and consumer prices. By staying informed and proactive, you can better navigate these changes and secure your financial future, regardless of the political landscape. Our team of financial advisors and wealth advisory experts at Keystone CPA’S are committed to helping individuals and families prepare for and navigate potential financial impacts of presidential elections, ensuring their long-term financial well-being.

accounting-company-provide-finance-taxation-profit-income-insight
TaxesEricha Eberhart

Maximize Your Business Tax Savings: Year-End Tips for 2024

Maximize Your Business Tax Savings: Year-End Tips for 2024

As we approach the end of the year, it’s crucial for businesses to take proactive steps to optimize their tax position. While the specifics of any forthcoming tax law changes remain uncertain, prudent tax planning is a smart move. Here are essential considerations to incorporate into your year-end business review.

1. Document Gathering and Resource Planning
Solid tax preparation hinges on thorough documentation and adequate resources. Don’t wait until the eleventh hour to assess your documentation needs and devise a plan to acquire essential resources.

2. Bonus Depreciation and Business Expensing
The Tax Cuts and Jobs Act initiated a phase-out of bonus depreciation through 2026. Assets placed in service before December 31, 2024, are eligible for a 60% bonus depreciation, while those in 2025 qualify for 40% bonus depreciation. Evaluating these opportunities before year-end is crucial.

3. Pass-Through Business Income Deduction Management
If your business is a pass-through entity, you may qualify for the qualified business income (QBI) deduction, potentially allowing for up to 20% of your QBI from a trade or business. Review your business income, deductions, wages, and property to maximize this benefit before the year ends.

4. Year-to-Date Business Results Review
Gaining an understanding of your business’s year-to-date income and deductions is key to effective tax planning. Proper analysis may enable you to accelerate or defer income recognition or tax deductions. For pass-through businesses, assess estimated payments and withholdings for potential adjustments.

5. Research and Development (R&E) Expenses
R&E costs incurred may need to be capitalized and amortized over a period of time. Evaluate the impact of R&E costs on your tax calculations and consider any potential allowances or deductions available for these expenses.

6. Preparation for Form 1099 and Ancillary Returns
Anticipate the preparation and filing of information returns such as Form 1099 and payroll-related filings, ensuring that essential information, such as vendor W-9s, is obtained promptly.

Proactive tax planning is time-intensive and best approached before the new year. We encourage business owners to engage in comprehensive discussions with their tax advisors. At Keystone CPAs & Advisors, our dedicated professionals are equipped to assist with a wide range of tax scenarios. We remain vigilant in tracking evolving tax laws and stand ready to offer tailored solutions. Schedule a consultation to delve into the specific strategies most suitable for your business.

Optimize your tax position for 2024 and ensure your business is well-prepared for the upcoming year. Contact Keystone CPAs & Advisors to embark on a strategic discussion that could shape your business’s financial future.

TaxesEricha Eberhart

Strategies to Reduce Your 2025 Tax Liability

Strategies to Reduce Your 2025 Tax Liability

Are you looking to strategically lower your tax burden for 2025? We understand the importance of proactive tax planning to minimize surprises and optimize your financial strategy. Here are key tax tips to consider before the end of the year.

1. Optimize Your Investment Portfolio
Capital loss carryforwards can play a crucial role in your tax strategy as they do not expire. Evaluate the potential benefits of utilizing any large capital loss carryforwards you have. Additionally, if you have substantial capital gains in the current year, explore opportunities for tax loss harvesting in collaboration with your tax and investment advisors.

2. Diversify Your Retirement and Investment Accounts
Well-diversified accounts, including traditional and ROTH IRAs as well as 401ks, can significantly reduce your tax liability for 2025. Depending on your income limits, you may be eligible for tax credits or deductions for your contributions. Keep in mind that making a traditional IRA contribution and taking a deduction is possible until April 15, 2025.

3. Leverage Health Savings Accounts (HSAs)
Consider contributing to an HSA, with individual coverage allowing up to $4,150 and family coverage up to $8,300. You have until the federal tax filing deadline of April 15th to contribute for the previous year. Explore how HSAs can serve as a powerful retirement tool, particularly for individuals with minimal annual medical expenses.

4. Maximize Child Tax Benefits
If you have children, it’s essential not to overlook potential tax credits and deductions, including the child tax credit, earned income tax credit, child and dependent care tax credit, and education tax credits and deductions. Each of these benefits has distinct phaseout income and age limits, emphasizing the need to consult your tax advisor for personalized assistance.

How Keystone CPAs Can Assist You

These tax tips offer a glimpse of the comprehensive assistance we provide. At Keystone CPAs, we recognize that the intricacies of the tax code can be perplexing. Our team is dedicated to working with you to gain a clear understanding of your tax situation and develop a customized tax strategy to minimize your tax burden not only for the current year but also for the future. Contact us online to schedule a consultation, or reach out using the contact information below.

With our expertise and proactive approach, let’s together pave the way for a tax-efficient and financially optimized 2025.

Connect with us for a personalized tax planning consultation at Keystone CPAs.

hacker-working-in-the-darkness
TechnologyEricha Eberhart

Keystone CPAS Presents: Protect Your Business from Cyber Risks Stemming from Physical Theft

Keystone CPAS Presents: Protect Your Business from Cyber Risks Stemming from Physical Theft

In today’s rapidly evolving landscape, the security of your business goes beyond merely locking the doors. With the increasing intersection of physical and cyber risks, companies must comprehend the intricate connection between the two realms.

Cyber Risks Stemming from Physical Theft

A seemingly isolated incident of physical theft can have far-reaching consequences for your digital assets. For instance, if a thief gains access to a company laptop from an employee’s car, the repercussions extend beyond the loss of hardware. The stolen device could potentially provide unauthorized access to sensitive customer data, paving the way for illicit activities like data exploitation or fraud.

The integration of Internet of Things (IoT) devices further amplifies the cybersecurity challenges. Smart security systems connected to the internet become vulnerable points if adequate cybersecurity measures are not in place. A breach of these systems could compromise your physical security, granting unauthorized entry to critical areas within your premises.

Effective Defenses

To fortify your defenses against physical vulnerabilities exposing digital assets, consider implementing the following strategies:

  1. Asset Identification: Maintain a detailed inventory of your valuable digital assets, outlining potential risks associated with their theft or misuse.

  2. Employee Training: Educate your staff on cybersecurity best practices, emphasizing the importance of secure procedures and password management.

  3. Mobile Device Management (MDM) Software: Implement MDM software to secure and wipe data from lost or stolen devices remotely.

  4. Contingency Planning: Develop a comprehensive action plan to address security incidents swiftly and efficiently.

  5. Insurance Coverage: Review your insurance policies to ensure comprehensive coverage against financial losses from physical and cyber breaches.

  6. Security Professional Engagement: Consider enlisting expert assistance to evaluate and enhance your physical and cyber defenses effectively.
Keystone CPAS – Your Trusted Ally in Cybersecurity

At Keystone CPAS, we understand the critical nature of safeguarding your business from cyber risks from physical theft. Our seasoned professionals are equipped with the expertise and resources to assist you in fortifying your organization’s security posture.

Connect With Us:

To learn more about our cybersecurity services or to seek personalized assistance from our Risk & Advisory Services team, visit our website or reach out to us directly.

Safeguard your business against evolving threats and ensure the resilience of your digital infrastructure with Keystone CPAS by your side. Your security is our priority.

Stay informed, stay protected. #KeystoneCPAS #Cybersecurity #RiskManagement #BusinessProtection

Â