MARIELA RUIZ, CPA, PLLC

Helping Individuals and Businesses Financially Thrive.

Tag: financial goals

What is Solar Power Tax Credit?

Green energy sources have many benefits to you and the world, including a federal tax credit or home and business owners who have had solar power panels installed before December 31. The federal solar tax credit, known as the investment tax credit (ITC), is much more profitable than a deduction. However, for taxpayers to get the full benefit, the world needs a sufficient income. Here are what tax professionals should know about ITC.

Introduction

When the government provides a tax incentive, it is happy about it, especially when local and state enticements convoy it. According to the Environmental Protection Agency, the government passed the ITC as part of the Energy Policy Act, which has been extended four times since its initial passage. The credit is now at 26 percent for the next two years so that eligible taxpayers can have a dollar-for-dollar decrease in the amount of income tax they owe. Taxpayers are looking forward to 2023 because the tax credit will drop to 22 percent. Renewable portfolio standards are in some states where utility companies give clients a specified minimum amount of electricity from solar. Utility companies buy energy made by a solar customer’s house. The value of solar renewable energy certificates will vary by state, but this is an example of taxpayer liberation.

How Does It Work?

            Solar power panels remain to provide people with prospective savings after filing their taxes. Solar energy creates opportunities to resell excess energy, evade power outages when harmonizing with a battery, and charge electric cars. The sun’s rays shine on the solar panels resulting in generating electricity that gives homeowners lower electric bills. The energy is completely free to the owner once the payment to the solar company ends. Also, solar power works all day, even when it is raining or dark overcast. Utility companies can offer the ability to sell back electricity to the grid for a credit on a homeowner’s electric bill. The utility companies can credit a home’s electric account.

The government is devoted to solar power that many states and cities have recognized property tax exemptions on solar. The solar panel installation calculates property tax fees giving homeowners and companies more money.

Conclusion

Solar energy panels have many benefits for businesses and homeowners. However, it could be challenging to understand everything about the tax deduction that comes with installation. You can count on Mariela Ruiz, CPA, PLLC, to help you with your taxes. We can give you tax advice for any situation you are in and find a financial solution that benefits you. We want to save you money by providing attentive and well-strategized plans, so call us at (956) 997-0067 today!

Financial Forecasting for Your Business

In order for your business to be successful in the future, it’s essential to have a financial forecast. What is a financial forecast? It’s an overview of your company’s current finances and resources. You can use it as a guide for budgeting and strategic targets for the future, allowing you to stay on track with goals for your business. It gives a detailed forecast of business trends so you can maneuver the direction you want the company to go. Learn more about the benefits of financial forecasting by reading our blog.

Clearing a Path

Preferred CFO says it best – “Having accurate and up-to-date financial records is vitally important for day-to-day operations. However, having an accurate financial forecast can be the difference between success and failure for a company.” This type of forecast reflects your company’s finances and resources, giving you the information you need for future planning, including long-term goals. These goals can be anywhere from six months to a year or even longer.

Confidence with Growth

Having confidence in your company is one thing, but it’s different when you have definite goals that you want to achieve. Of course, there are certain steps you must take, but with a financial forecast, it can help you get there. Following an accurate forecast can assist with growth within your business, as well as create trust and confidence with investors.

Plan of Action

With your financial forecast in hand, you can plan what resources you will need, including when and how to use them. For example, resources for your company may include cash investments, materials, employees, and so on. Using the forecast as a reference, you can make decisions based on accurate financial information. Answers to questions such as “how much do I need to make sure I don’t run out before the next funding round?” or “how many employees do I need to prevent overstaffing or understaffing to achieve this quarter’s goals?” are made much clearer.

Conclusion

MARIELA RUIZ, CPA, PLLC offers financial forecasting and projections for clients in the city of Mission and surrounding areas. With our certified public accountants by your side, you can be confident in our services and the success of your business. Get in touch with an accountant at MARIELA RUIZ, CPA, PLLC today!

Qualities of an Excellent CFO for Your Small Business

As a business owner, you understand the importance of making sure your finances line up month after month. Hiring a CFO or chief financial officer to keep an eye on your business’ money is a big step. Keep reading to learn four of the qualities to look for in your ideal candidate in order to ensure a prosperous future for your company.

CFO display.
CFO display.

Knowledge of Your Company’s Industry

Every industry is different and each has different financial needs. Ensuring you choose a financial team member that understands the ins and outs of your company’s financial field is incredibly important. In order for your CFO to be successful in the company they need to fully understand where your clients and stakeholders are coming from to make the best money choices.

Reliability

If you are ready to take the step of hiring a CFO, you’re choosing to hire a leader that you will be able to rely on in any given situation. They will not only be leaders of your accounting and financials but they should also be reliable during difficult times in order to keep the business moving forward.

Problem Solving Skills

No matter what stage your business is in, there are always problems to be solved. Whether concerns faced by small businesses or issues that arise after profitability, you need to trust your CFO will have the problem solving skills necessary to address the issue.

Nameplate with CFO printed on it.
Nameplate with CFO printed on it.

Wide Range of Financial Knowledge

It goes without saying that your CFO needs to understand the ins and outs of finance. However, it would also be highly beneficial to work with someone that understands other aspects of business such as investments and risk management. A CFO with this knowledge would be incredibly helpful for the growth of your company.

Thoughts

Choosing to work with anyone in a financial capacity is a big step, especially if you own a business. These are only a handful of the qualities needed in the perfect CFO for your company. That’s why MARIELA RUIZ, CPA, PLLC prides our self on holding all of these and many other positive aspects that make a good chief financial officer. Visit our website today to learn how we can best help your company keep growing.