MARIELA RUIZ, CPA, PLLC – Helping Individuals and Businesses Financially Thrive.

Reasons Your Small Business Needs CFO Services

Running a small business requires wearing many hats, from managing day-to-day operations to overseeing finances. While you may have successfully handled these responsibilities on your own thus far, there comes a point when your business can greatly benefit from the expertise of a Chief Financial Officer (CFO). In this month’s blog, we will explore what a CFO is and what CFO services can bring to the table for your business.

What is a CFO?

A Chief Financial Officer (CFO) is a senior executive responsible for overseeing and managing the financial operations of a company. Serving as a strategic partner to the CEO and other stakeholders, the CFO plays a critical role in shaping the financial direction of the organization. They are responsible for financial planning and analysis, budgeting, and keeping your business financial records accurate and organized.

Related: Learn more about tips for keeping accurate and organized financial records here.

Enhanced Financial Strategy and Planning

According to new statistics, the failure rate for new startups is currently 90%. The main reason? A poor financial strategy and planning. A CFO can iron out the wrinkles in your financial management and bring a high level of financial expertise to the table. Your business needs an accurate financial strategy to achieve your goals in both the short term and long term.

Related: Learn more about accounting mistakes that could harm your small business here.

Effective Risk Management

Risk is an inherent part of any business, regardless of the industry. All businesses face risks such as market downturns and unpredictability (as we’ve recently seen with COVID-19). A CFO can help you identify and assess potential risks, whether they are financial, operational, or regulatory in nature. By implementing robust internal controls, developing contingency plans, and monitoring key risk indicators, a CFO can safeguard your business’s financial well-being.

Related: Learn more about key considerations and best accounting practices for startups here.

Rely On an Experienced CFO

As your small business continues to grow, the need for CFO services becomes increasingly important. At MARIELA RUIZ, CPA, PLLC, we offer excellent CFO services designed to drive your business toward sustainable growth and profitability. Visit our website at www.mruiz-cpa.com or call us at (956) 997-0067 to learn more about how our CFO services can benefit your small business.

3 Reasons Why Outsourcing a CFO Saves You Money in Business

October 17, 2023 / admin / 0 Comments

Outsourcing the CFO services can be a huge money saver for your business. However, when entrepreneurs and small business owners reach a specific size or level of complexity, it can be beneficial to outsource CFO services. By partnering with a trusted accountant, you can position your business to grow and make it stronger and more secure. In this month’s blog, we will explore three compelling reasons why outsourcing a CFO can save you money in business.

business technology internet network concept

Remain Focused on Financial Goals

When running a business, it’s easy to get caught up in day-to-day operations and lose sight of your long-term financial goals. This is where CFO services come in handy. By outsourcing your CFO responsibilities to experts, you can ensure that someone is dedicated to managing your finances, monitoring cash flow, analyzing financial data, and developing strategic plans to keep your business on track.

Related: learn more about tips for keeping accurate and organized financial records here.

Streamline Your Bookkeeping & Tax Filing Process

As a business owner, you have to deal with a maze of tax regulations. You must stay on top of federal, state, and local regulations, and in a lot of cases, you may end up subject to taxation in multiple jurisdictions. Hiring a CFO who doubles as a trusted CPA is a clever way to save your business money. A CFO will implement efficient bookkeeping systems, automate processes, and provide expert guidance on the latest tax regulations.

Related: Learn more about the reasons you need to hire a tax expert here.

senior CFO developing strategies for businesses

Access to Expertise

A recent report by Datarails indicates that CFOs spend around 10 hours per week on manual work rather than on strategic financial analysis. This means, that when hiring a CFO, your budget, cash flow management, and financial data are all done off-site by a CFO whose only job is to ensure your finances are running smoothly. This could also help you avoid pitfalls that could harm your small business.

Related: Learn more about mistakes that can harm your business here.

Interested in Outsourcing CFO Services?

At Mariela Ruiz, CPA, PLLC, we have a team of dedicated professionals who are ready to provide you with comprehensive CFO services tailored to your specific needs. From financial analysis and forecasting to strategic planning and cost optimization, we have the expertise to help you achieve your financial goals. Visit our website at mruiz-cpa.com or call us at (956) 997-0067 to schedule a consultation and experience the benefits of outsourcing a CFO for your business.

Tips For Keeping Accurate and Organized Financial Records

September 14, 2023 / admin / 0 Comments

For every business, performing fast and accurate accounting is a matter of utmost importance. However, many businesses need to be aware of the different regulations surrounding keeping financial records. In Texas, businesses must keep certain records for at least four years unless the comptroller gives written authorization for earlier destruction. This shows the importance of keeping accurate and organized financial records. In this month’s blog, we will explore some valuable tips that can help you maintain accurate financial records, ensuring better financial management and peace of mind.

Keeping Track of Income and Expenses:

The first step towards maintaining accurate financial records is to diligently track your income and expenses. This can be done by regularly updating a spreadsheet, using accounting software, or even keeping physical receipts. These accounting practices can help you identify areas where you can cut costs and make informed financial decisions.

Related: Learn more about best accounting practices for startups here.

Go Digital and Use Software:

One of the best ways to ensure accuracy and organization is to use financial software. Tools like QuickBooks or Mint can help in categorizing and tracking every transaction. These software programs often come with features that allow automated data entry from bank accounts and credit cards, reducing the chances of errors. Moreover, opting for cloud-based solutions ensures that your data is accessible from anywhere and gets backed up automatically, protecting against potential data loss.

Related: Learn more about what to consider before getting accounting software implementation here.

Schedule Regular Financial Check-ins:

Just like a regular health check-up, it’s important to routinely review your financial records. Set aside time monthly or quarterly to go over all transactions, ensuring that they are categorized correctly. This also gives you the chance to reconcile your records with bank statements, identifying any discrepancies or fraudulent activities. Additionally, during these check-ins, ensure that all documents are stored systematically. This way, when you need a specific document, it’s easy to locate without sifting through countless folders on your computer.

Related: Learn more about the best bookkeeping and accounting practices for the success of your business here.

Rely On MARIELA RUIZ, CPA, PLLC

For expert assistance in maintaining accurate and organized financial records, contact MARIELA RUIZ, CPA, PLLC. Our team is well-versed in financial management and can provide personalized solutions to suit your needs. Contact us at (956) 997-0067 or visit our website at www.mruiz-cpa.com to learn more about our comprehensive accounting services.

When to Consider a Financial Audit for Your Startup

August 17, 2023 / admin / 0 Comments

Startups are a world of excitement, challenges, and opportunities. As the gears of innovation turn, there’s one wheel that entrepreneurs often overlook: the financial audit. While it may seem too formal or unnecessary during the early stages, a financial audit can provide numerous benefits to a young company. In this month’s blog, we’ll talk about when and why a startup should consider undergoing a financial audit.

What is a Financial Audit?

At its core, a financial audit is an examination of a company’s financial statements and related operations to ensure accuracy and compliance with accounting standards and regulations. An external auditor, often from a reputable accounting firm, conducts this examination and provides an opinion on the financial statements’ accuracy.

Key Indicators Your Startup Might Need an Audit

At the outset, startups often operate with lean margins and limited resources. Still, as they gather momentum and secure funding or begin to generate consistent revenue, the intricacies of their financial transactions multiply. This is where a financial audit becomes instrumental. Firstly, an audit provides a detailed and neutral view of the startup’s financial health. This is invaluable to stakeholders, investors, and lenders who bank on accurate financial statements to make informed decisions. Secondly, as a startup plans to scale, whether organically or via mergers and acquisitions, having audited financial statements can smoothen negotiations and due diligence processes. Additionally, certain regulatory and contractual conditions may necessitate an audit. For instance, if your startup is looking to raise a significant funding round or go public, potential investors or regulatory bodies might require audited financials.

Related: Learn more about the key considerations and accounting best practices for startups here.

Benefits of a Financial Audit

A financial audit can help founders and managers identify inefficiencies, uncover potential fraud, and streamline processes. The insights garnered can guide startups toward financial prudence, ensuring that resources are optimally utilized. Moreover, an audit fosters a culture of transparency and accountability within the organization. By regularly reviewing and validating financial transactions, startups build a strong foundation that can weather uncertainties and be well-prepared for future growth.

Related: Learn more about accounting mistakes that could harm your small business here.

Hire MARIELA RUIZ, CPA, PLLC For Your Financial Audit Needs!

We at MARIELA RUIZ, CPA, PLLC understand the unique challenges faced by startups. Our expertise is not just in conducting meticulous audits, but also in guiding young enterprises towards sustainable growth. Let’s embark on this journey together and ensure that your startup’s financial roadmap is both robust and transparent. Reach out to us at our Mission, TX office by calling (956) 997-0067 or visit our website at www.mruiz-cpa.com. Your startup’s future is bright; let us help you illuminate its path.

What To Consider Before Getting Accounting Software Implementation

July 10, 2023 / admin / 0 Comments

Many small businesses reach a point where the traditional manual procedures and fragmented accounting practices that were once used to manage their financial matters become more of a hindrance than an advantage. This calls for the need for personalized accounting software, but the process of implementing accounting software demands careful consideration and planning. In this month’s blog, we will discuss key factors that should be considered when considering the implementation of an accounting software system.

Identify Your Organization’s Needs

Before choosing accounting software, it’s critical to thoroughly evaluate your business’s specific needs and requirements. As your business expands, your financial processes may become more complex, so you want to choose accounting software that offers scalability. Speak to your accountants to gain better insight into what difficulties they face daily with the present accounting software.

Related: Learn more about the importance of hiring an accountant when starting a business here.

Evaluate The Software’s Features and Functionality

While many accounting software options are available in the market, not all will cater to your business’s specific requirements. Therefore, it is crucial to evaluate the features and functionality offered by potential software solutions. You don’t want to pick the wrong software, so check out the basic features such as accounts payable and receivable, financial reporting, inventory management, payroll, etc.

Related: Learn more about the key considerations and best accounting practices for startups here.

Security And Data Protection

Accounting software often handles sensitive financial information, making security and data protection paramount considerations. However, reports show that small business rank highest in occupational fraud frequency, and you don’t want to be one of them. Evaluate the software’s security measures, including user access controls, and regular updates to safeguard against potential cyber threats.

Related: learn more about how forensic accounting saves your business from fraud here.

Rely On MARIELA RUIZ, CPA, PLLC!

Implementing a new accounting software system is a crucial decision that can significantly impact the financial management of your business. At MARIELA RUIZ, CPA, PLLC, we have been accumulating invaluable insights for many years, having guided numerous clients through successful accounting software implementation. Call us at (956) 997-0067 or visit our website www.mruiz-cpa.com to learn more about how we can help you.

Accounting for Startups: Key Considerations and Best Practices

June 8, 2023 / admin / 0 Comments

As a startup owner, navigating the world of accounting can be both challenging and crucial for the success of your business. Understanding the key considerations and implementing best practices in accounting is essential to ensure accurate financial records, regulatory compliance, and informed decision-making. In this blog post, we will explore the key considerations and best practices that every startup owner should be aware of to establish a solid accounting foundation.

Key Considerations for Startup Accounting

When it comes to accounting for startups, there are several important considerations to keep in mind. Firstly, setting up a proper accounting system is essential. This includes selecting the appropriate accounting software, establishing chart of accounts, and implementing robust internal controls to safeguard your financial data. Secondly, understanding the financial implications of different business structures, such as sole proprietorship, partnership, or corporation, is crucial. Each structure has different tax obligations and financial reporting requirements. Lastly, tracking and categorizing expenses accurately from the beginning is vital for budgeting, tax deductions, and financial analysis. Proper documentation and record-keeping of all transactions will save time and headaches down the road.

Best Practices for Startup Accounting

Implementing best practices in accounting will streamline your financial processes and provide a strong foundation for growth. Regularly reconciling bank statements, invoices, and receipts will ensure accuracy and help detect any discrepancies or errors. Creating a budget and regularly monitoring cash flow will enable you to make informed financial decisions and manage resources effectively. Additionally, seeking professional guidance from a qualified CPA with expertise in startup accounting can provide valuable insights, ensure compliance with tax regulations, and help optimize your financial operations.

Rely On an Experienced CPA

Ready to establish a solid accounting foundation for your startup? Contact MARIELA RUIZ, CPA, PLLC at (956) 997-0067 or visit our website at www.mruiz-cpa.com to learn more about our comprehensive accounting services. Our experienced team is dedicated to helping startups and small business owners navigate the complexities of accounting and achieve financial success. Let us be your trusted partner in building a strong financial future for your startup.

Accounting Mistakes That Could Harm Your Small Business

May 1, 2023 / admin / 0 Comments

While large businesses may have the resources to bounce back from financial blunders, small businesses, on the other hand, may not have that cushion. For entrepreneurs and small businesses looking to keep their cash flow steady, there are some steps they can’t just skip trying to make the leap. In this blog post, we will discuss some of the most common mistakes that can sink and destroy small businesses.

No Rainy-Day Fund

Failing to save for emergencies is one of the biggest financial mistakes that even the savviest business owners go wrong with their small business financial management. A rule of thumb is to have at least six months of running business expense as your rainy-day fund to avoid any financial shortcomings. The last COVID-19 pandemic did a number on many high-profile companies in the US, and this is a case in point on the importance of saving for emergencies and planning for the unexpected.

Mismanaged Taxes

Going for DIY taxes software to quickly cross off your to-do list can simply lead to costly tax issues. Managing your business taxes is an entirely different ball game than managing your personal ones. You need an expert well-versed in local and business laws to help you with your taxes. As a small business owner, you already have a lot on your plate, which is why hiring a tax expert can be a smart investment for your small business.

Being Oblivious to Fraud

Small business owners often wear many different hats and accounting might be one of their skills. While it’s a good thing that you’re able to handle your small business finances on your own, there is a risk of failing to catch the signs of fraud. Specialized accountants like forensic accountants have keen minds and it’s their job to ensure your business activities are legitimate and everything is in order. In cases of fraud detection, we believe that one can never be too careful. Hiring an accountant will minimize the risk for you.

Related: Learn more about how forensic accounting can save your business from fraud here.

Starting a Business without the Backup of an Accountant

Having your business see the light of the day is a big step. However, 20% of small businesses fail in their first year and being one of them is the last thing you want. That shows the importance of having a good business plan and the backup of an experienced accountant. No business can survive without a solid long-term plan and a vision to execute it.

An accountant can assist you with market forecasting and analyze the current situation to devise a plan for your business’s future. A seasoned accountant can help you put your business plan together and be your key success as you move forward.

Related: Learn more about why it’s essential to hire an accountant when starting a business here.

Let MARIELA RUIZ, CPA, PLLC Help You Reach Business Milestones

Small businesses face unique financial challenges that require careful attention and planning. MARIELA RUIZ, CPA, PLLC is here to ensure that you are well-supported and guided at each stage of the creation and development of your small business. Check our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.

Reasons You Need to Hire a Tax Expert

April 3, 2023 / admin / 0 Comments

Often, people hesitate to hire a professional tax expert because they can be quite expensive. But one must understand that hiring a tax professional can be a big help for those dealing with more complicated situations. In addition, if you’re self-employed, a professional tax expert can take the stress out of doing your taxes. Are you wondering whether you should tackle filing yourself or hire a tax preparer to do it for you? To help you, we have listed some of the pros that you can consider to make the right choice.

Reasons Why You Need to Hire a Tax Expert

Itemizing your taxes

Itemizing your taxes can be a bit difficult and time-consuming to do correctly. Though it’s a common practice, it can still make your tax returns more complicated. However, a professional tax preparer will help ensure you don’t make mistakes and ensure your return is submitted on time. They can also help you figure out how to optimize your itemizing situation.

Tax knowledge and advice

A certified and professional tax expert may have much more specialized knowledge of tax laws and regulations. They can provide you with professional advice to make sure your tax return is free of errors and accurate, reducing the likelihood of mistakes and protecting you from additional penalties or audits.

Situations That Might Require You to Hire a Tax Professional

Dealing with multiple sources of income

When you’re juggling different kinds of tax forms, it can get complicated quickly. However, a tax expert can help you handle both W2s and 1099s in a much more professional manner.

Planning to adopt a child

A professional tax expert will assist you incollecting the proper documentation and can also help you qualify for a tax credit toward adoption-related expenses per the IRS.

Help you resolve a previous tax return mistake:

If you’ve made tax mistakes in the past and are not sure how to overcome these errors, a professional can help you avoid these mistakes in the future and file an amended return.

Assist you in caring for your elderly parents.

If you’re providing financial support for an elderly parent, a professional tax expert can help you claim them as a dependent or qualify for tax breaks.

Conclusion

We hope the above guide helps you make the right decision about whether you need to hire a tax professional or not. Moreover, if you’re looking for professional help, MARIELA RUIZ, CPA, PLLC, offers financial consulting, professional accounting, bookkeeping, tax preparation services, and more in Mission, TX. Visit our website to learn more about our services, or call us at (956) 997-0067 for further assistance.

Best Bookkeeping and Accounting Practices for the Success of Your Business

March 9, 2023 / admin / 0 Comments

Managing your personal finances is one of the primary priorities in one’s life, and a majority of people can manage this on their own. But when it comes to bookkeeping and accounting for business finances, it is entirely different. There is a lot more to consider, and with employees and customers counting on you, the stakes are much higher. The following are some of the best bookkeeping and accounting practices you can adopt for the success of your business.

1. Set internal control over finances.

Setting internal control over the business finances can reduce the risk of fraud. Your bookkeeping policies should be diversified and not solely dependent on one person. Establish dual control of processes that include purchasing or receiving payment.

In simpler words, the person who opens the mail for bills should be someone other than the one who writes the check. And the person who writes the check should not be the one to authorize it. The list of payments should be forwarded to the accountant, so the entire process is free of fraud.

2. Determine the accounting method that suits your business needs.

There are two standard accounting methods widely practiced in business management—cash basis accounting and accrual accounting.

Cash basis accounting is one of the simplest methods and approaches for accounting and bookkeeping. Cash basis accounting records transactions at the time cash actually changes hands and is usually only recommended for companies that do business strictly in cash payments.

The accrual method uses the matching principle to record revenues and expenses in the time frame they occur, regardless of when payments are made or received. The accrual method is usually the best choice for any business which will be invoicing clients.

3. Keep your personal and business finances separate.

Keeping your personal and business finances separate is crucial to ensure clarity in the management of accounts and finances. Ensure that you and your employees are not using the business funds for personal purchases or expenses.

Have separate bank accounts and credit cards for your business expenses. This will immensely help you when you are filing for taxes and ensure you keep the records. You don’t want to face legal action because your business and personal finances were intermingled.

Conclusion

Whether you run a startup or manage a large corporation, you can benefit significantly from the services of a professional bookkeeper in meeting your financial goals. MARIELA RUIZ, CPA, PLLC, offers financial consulting, professional accounting, bookkeeping, tax preparation services, and more in Mission, TX. Visit our website to learn more about our services or call us at (956) 997-0067 for further assistance.

How to Prepare Yourself for Tax Day 2023

February 17, 2023 / admin / 0 Comments

As soon as the tax season starts, the countdown to Tax Day begins. However, many Americans hold no brief on paying taxes and take this matter for granted, but at the end of the day, Tax Day is inevitable. Also, Tax Day brings a mountain of paperwork; therefore, the sooner you get started, the better prepared you’ll be. Here are some tips to help you get ahead of the game and ensure filing your 2023 taxes is easier.

Check the Latest Tax Laws

Every year brings something new to U.S. income taxes, and 2023 will be no different. This means staying updated with the latest tax laws is a necessity. The tax code is constantly changing due to many reasons, such as high inflation and stock market volatility, which calls for new tax brackets that you don’t want to miss.

Organize Your Tax Documents

After having a good understanding of the newest tax codes, now it’s time to get organized for Tax Day. Gather the necessary documents you need to file your return. You can check our blog, where we talked about how to file your taxes in 2022. Follow the same steps, and by implementing the new tax codes, you’ll figure out whether it’s feasible to file your own taxes or outsource the task to a tax professional.

Related: learn more about the importance of hiring a tax expert here.

Update Your Information

This may sound obvious, but it can be easy to overlook. If your marital status, address, or employment has been changed, it’s important to reflect these changes to SSA and IRS. IRS clearly states that any delay can affect the process of your tax return and might lead to penalties – and this is the last thing you want.

Review Your Past Returns

Take a look at your past tax returns to see if there are any areas where you may need to improve your record keeping or documentation. This will help you avoid any errors or misunderstandings when preparing your current year’s return. Now, with everything in order, you are ready to file your taxes!

Enlist MARIELA RUIZ, CPA, PLLC’s Help

Preparing for tax season is a bit stressful and overwhelming experience, but you don’t have to play it by ear. MARIELA RUIZ, CPA, PLLC is here to ensure that your return is accurate and complete. We offer the best tax preparation services in Mission, TX. Check our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.

Helping Individuals and Businesses Financially Thrive.