All Posts tagged CPA

vCFO: 5 Reasons Why Your Business Needs One

vCFO: 5 Reasons Why Your Business Needs One

Now that you’ve started down the path of entrepreneurship, there are a series of essential roles to fill, like CEO and marketing team positions. However, many people make the mistake of leaving the financial department last in the staffing queue.

Within the financial department, the most ignored position is that of Chief Financial Officer, also known as the CFO. The lack of a CFO is the reason many enterprises don’t make it.

At Gonzalez & Arrambide, we want to showcase the importance of hiring one of our vCFOs to help your business boom.

Duties of a vCFO

The CFO is responsible for managing the financial aspects of your business. Yet, a full-time, in-person, CFO can be costly. This is where hiring a virtual CFO (vCFO) could make a lot of sense for small businesses and startups.

A vCFO is a consultant or business that offers the services of a CFO, but does their job remotely, and usually on a part-time basis. The vCFO will focus on creating high-level financial strategies and putting them into action. 

Our vCFOs at Gonzalez & Arrambide can provide financial services on a weekly, monthly, or quarterly basis. Our vCFOs are also ready to provide advice for a specific project. However, if you already retain the services of a full-time CFO, it would be redundant to get a vCFO. 

Yet, if you have a new start-up, keep on reading to learn why a vCFO is the best option for you.

5 Reasons to Hire a vCFO

1. Customized Goal Setting

The first thing a quality vCFO will do is understand and lay out your business’ short and long-term goals. These goals will become the blueprint from which to build your custom strategy.

You get customized experience to your needs and goals. This cuts any expenses on services you don’t require.

2. Report Design and Problem Solving

The vCFO will design and set a standard report to help organize your finances. A vCFO will have seen many issues and situations in different companies, this allows them to organize your finances in the most effective way for you. 

Their experience will help you get past your problems even before they happen. You’ll have the benefit of learning from others’ mistakes.

3. Technology Efficient

The vCFO will optimize any of your financial technology. This way they will maintain the financial organization within your business and cut expenses on software you don’t really need.

Virtual CFOs have experience with a wide range of different systems and products since they work remotely. They will be able to provide first-hand advice on different systems, and find one suitable for your needs.

4. Experience and Custom Balance Sheet Builds

Hiring a vCFO gives you a fresh pair of eyes that have seen many businesses before. A quality vCFO will analyze your balance sheet when they come on board. If needed, they will rework it.

By outsourcing your CFO services with us, you’re bringing instant experience. That experience could be vital, especially when it comes to a newly found business.

5. Streamline Financial Processes

Working with a vCFO, you’ll gain from their financial expertise and obtain help with developing and streamlining your financial operations. Since the vCFO will have worked with various clients across different industries, they have insight into operational improvements.

Find the Weslaco Financial Services You Need at Gonzalez & Arrambide

As your business grows, a vCFO can grow with you. Whether you only need the Gonzalez & Arrambide vCFO services one day a week, or part-time as you become more successful, we are here to support your business at every step.

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Hiring an Accountant Can Make Your Life Easier for this Tax Season’s Extension: Here’s How

Hiring an Accountant Can Make Your Life Easier for this Tax Season’s Extension: Here’s How

As we live through another year with the COVID-19 pandemic, the deadline to pay your taxes was extended last month by the IRS to May 17th in an effort to take some economic pressure off Americans.

To make your life easier for this tax season’s extension, your local Weslaco CPAs at Gonzalez & Arrambide can ease the process of filing your taxes by the deadline. Today, we will break down what’s expected for this payment extension, and how we can help.

What to Expect from the Tax Extension

This extension goes for all filers, including individuals, businesses, trusts, estates and more. It applies regardless of how much you may owe, and payments will not include extra penalties or interest up until the extended date. This extension is automatic, so taxpayers don’t have to file any more forms to take advantage of it.

The extension could offer great benefits for taxpayers seeking to save for retirement through an IRA. That’s due to the typical April 15 income tax deadline that also happens to be the IRA contribution deadline. With this, the updated May 17 due date would set back the 2019 IRA contribution deadline.

The 2020 standard IRA contribution limit exceeds $6,000, or $7,000 if you are 50 or older. If you’ve already used your contribution for the 2020 tax year, you can put it towards the 2021 tax year, where the limit is also $6,000.

Note that this extension does not apply to 401(k) retirement savings accounts.

The federal government recommends that taxpayers file their taxes as soon as possible, especially those who are awaiting a tax refund. Earlier this year, U.S. Treasury Secretary Steve Mnuchin mentioned that he wanted people to be able to access their refunds as soon as possible. This flow of cash would lift some of the financial weight of the pandemic.

Gonzalez & Arrambide Can Help You This Tax Season

While you might be able to file your taxes by yourself without any assistance, you’ll never be aware of how much money you’re leaving on the table. An accountant will have the knowledge and expertise to make sure you’re not overpaying, and that you’re making accurate claims to all the deductions you deserve.

Handling taxes on top of the stress of the ongoing pandemic can feel overwhelming and difficult to navigate through. The most minor mistake in this financial circumstance can leave an impact on both you and your business. If doing taxes alone feels like too much pressure, our skilled CPAs can show you the process, step by step.

We can sort out the process of filing taxes and simplify the intricate process for a reasonable rate. You don’t have to file your taxes by yourself. Be proactive and consult with Gonzalez & Arrambide!

To learn more about how this tax extension affects you or your business, or for help filing your taxes, speak with our certified public accountants by scheduling a consultation with us today.

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Do You Need a CPA or VCFO for Your Business?

Do You Need a CPA or VCFO for Your Business?

Making sound financial decisions are crucial to the success of any size company. A financial professional will help you understand and chart strategies to help you manage a profitable company, but for many, there may be confusion regarding the respective services of a Certified Public Accountant (CPA) or a virtual Chief Financial Officer (VCFO). 

What your business needs will determine what level of financial professional you need. To clear the air, the virtual CFOs at Gonzalez & Arrambide want to discuss the differences between all of these roles so that you can get the most benefit for your business.

The Differences Between a CPA and a VCFO

A moderate sized company with revenue ranging from $2 million to $20 million may have senior executives rely on the advice of their CPA for matters involving certain business finances. In these instances, the CPA will offer a financial opinion based on experience with taxes and tax law, rather than offering insight related to long-term financial advice for the business.

The responsibilities of a VCFO go beyond tax advice and basic accounting. In a nutshell, a VCFO helps with business planning, forecasting, negotiating, and business budgeting, all of the same kind of responsibilities a company Chief Financial Officer (CFO) would do. A VCFO, on the other hand, saves a company money because they aren’t paying for a full-time employee with benefits.

It’s important to note that you don’t need to be a CPA to be a VCFO, and CPA’s aren’t always well-versed on managing complex corporate finances that a VCFO can.

Let’s elaborate a little bit on these roles now.

More Into the Role of the CPA

In the simplest of terms, the CPA is in the business of tax return preparation; that is their primary responsibility. A CPA may collaborate with a VCFO to provide tax advice that will ultimately help guide the company’s financial decisions based on short term and long-term objectives. 

The CPA’s knowledge revolves around taxes and tax laws that lend to the strategies that may be developed by an outsourced CFO. Often, a company may mistakenly look to a CPA for business advice that may be best handled by an individual with a background as a VCFO. A CPA will help a company thrive by performing a range of duties including: 

  • Organizing and updating accounting records
  • Staying abreast of tax laws 
  • Tax preparation and analyzing reports on transactions
  • Conducting regular, detailed audits 
  • Manage financial documents, expenditures, and investments

Consider a VCFO to Help You Strategize While Saving Money

When evaluating the financial goals and objectives of a company, an outsourced CFO will bring strategies and insight that a CPA may not be equipped to handle. A qualified and experienced VCFO will focus on future cash flow and offer expert advice on operational planning to ensure a company is sustainable. In addition, a company may choose to hire a VCFO in order to:

  • Chart a financial strategy
  • Forecast growth
  • Outline sustainability by addressing expenses and highlighting assets
  • Improve profitability 
  • Control expenses and cash flow
  • Establish strong financial relationships
  • Assess financial risk
  • Finance project management 
  • Liaison shareholder relationships

Ultimately, a business may decide to hire a CPA, a VCFO, or both based on a range of factors exclusive to your company’s needs. Whether you’re a growing business or an established company, hiring the right team can make all the difference in your financial outlook.

The Virtual CFOs at Gonzalez & Arrambide Offer Trusted and Sound Service

Founded in 1996, Gonzalez & Arrambide, Inc. has become a respected and recognized accounting firm dedicated to helping individuals and businesses of all sizes with their business needs and strategy. Our commitment to services ensures we give you what you need to succeed and grow your revenue streams. 

At Gonzalez & Arrambide, we offer our clients Virtual Chief Financial Officer (VCFO) services and have helped them improve financial management without spending the substantial resources needed to hire someone in a full-time role. 

Serving the entire Rio Grande Valley Greater Metro and located in Weslaco, our VCFOs are more than qualified to meet your business needs.

Schedule a Consultation Now

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