Helping Individuals and Businesses Financially Thrive.

Tag: financial knowledge

Gross Income Before and After Taxes: Key Differences Explained

Understanding your salary may seem like a daunting task, but it’s actually quite straightforward once you grasp the disparity between gross income before and after taxes. When we talk about your salary as CTC (Cost to Company), we refer to it as gross pay, whereas the amount you actually receive in your account every month is termed as net pay. But what exactly is the disparity between gross income before or after taxes? In this month’s blog, we will shed light on this crucial financial concept.

Gross Income Before or After Taxes: What’s the Difference?

Gross income before taxes refers to the total amount of money you earn before any deductions such as income tax, Social Security, or Medicare. It’s essentially the full amount agreed upon in your employment contract, also known as your gross pay or CTC.

On the other hand, gross income after taxes is the amount you receive after deductions for federal, state, and local taxes, as well as other deductions like retirement contributions and health insurance premiums. This is commonly referred to as your net pay.

Calculating Gross Income Before or After Taxes

To calculate your gross income before taxes, simply add up all sources of income, including your salary, bonuses, commissions, and any other forms of compensation. This total represents your gross pay.

Calculating gross income after taxes involves a bit more complexity. You start with your gross income before taxes and then deduct federal income tax, state income tax (if applicable), Social Security tax, Medicare tax, and any other deductions required by law or chosen by you. The resulting amount is your net pay, which is what you actually take home.

Related: Learn more about why it’s important to hire a tax expert here.

Gross Income for Freelancers And Self-Employed Individuals

Unlike employees who have a clear-cut figure in their employment contract, determining gross salary for freelancers and self-employed individuals can be more variable. It encompasses not only the fees they charge for their services but also factors such as business expenses, overhead costs, and fluctuations in income.

Also, it’s crucial to acknowledge that only income received within the tax year is factored into the gross income calculation. Therefore, any outstanding payments owed by clients or customers to the business are not factored into the gross income for that particular tax year until they are received.

Related: Learn more about bookkeeping for freelancers and self-employed individuals here.


Understanding gross income before and after taxes requires expertise and precision, especially for freelancers and self-employed individuals. MARIELA RUIZ, CPA, PLLC is here to calculate your gross income, manage your tax obligations, and handle your overall financial strategy. Visit our website at or call us at (956) 997-0067 to schedule a consultation and optimize your financial management today.

Financial Controller Services

The growing pains that flourishing companies experience look different and fluctuate over time based on department, company size, rate of growth, and other key factors. In finance departments, management may notice that as transactions increase in volume and complexity, managing the day-to-day duties of accounting and finance, while maximizing growth and performance can get overwhelming. When this happens, it may mean it’s time to invest in adding a financial controller to the payroll.

What is a Financial Controller?

A financial controller is someone who’s a certified public accountant (CPA) or has equivalent industry experience and education in accounting or finance. Controllers are hired when a company’s finance department requires supplementary support with some of their financial oversight. Every financial controller job is unique, but most will be responsible for ensuring maximum financial efficiency, health, and compliance within their company.

Who Needs a Controller?

As a company becomes more inundated with business overtime, it is normal to crave additional assistance in order to ease the increasing workload on each individual. It is often the chief financial officer (CFO) of a company who will eventually require the direct support of a financial controller. Depending on the company, a financial controller may be responsible for helping the CFO with financial reports and statements, preparing budgets, providing internal audits, preparing taxes, managing purchase orders and other financial related duties.

Final Thoughts

Outsourcing financial controller services for your growing business can provide a cost-effective resource of support at a critical time in your business’ development. Whether your company needs temporary or permanent financial support, you can rely on Mariela Ruiz, CPA, LLC of South Texas! She has a proven track record in her field and is committed to honesty, efficiency, and success every time! Call our team today at (956) 997-0067 to find out how we can help you and your business thrive!

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.


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.


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.