Author Archives: Paul McCann

Outsourced Accounting, Practice Management, Taxes

The IRS Tattletale Program

Posted on by Paul McCann
14
Jan

No one ever likes it whether on the playground or in the mafia movie. Nothing good happens to these people. In the movies, as soon as you see it, you know the character is doomed. They get a reputation as someone who can’t be trusted at best and “swim with the fishes” at worst.Rat. Nark. Snitch. Tattletale.​Regardless of the context the terms are never positive.  These shifty eyed people are always watching their backs and covering the […]

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Taxes

Do I Need to Pay Estimated Taxes?

Posted on by Paul McCann
02
Jan

Congratulations! Your company is established and thriving.  ​After the long years of studying, working and building your business, in addition to your salary, your business is now providing distributions and income as a fruit of your investment.  Because you have set a reasonable compensation plan as well, your business is creating ROI on your labor, meaning the owner (you) is profiting on the employees’ labor.Chances are good, now you will need to pay quarterly esti […]

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Cash Flow, Cash Management, Distributions, Practice Management

Can I Deduct Business Expenses Made With My Personal Rewards Card?

Posted on by Paul McCann
26
Nov

It has taken you years to progress through the rewards channel.  When you remember the flights before preferred seating, being the last passenger to be called onto the packed airplane you shutter in horror of returning to that level of incivility.  The overhead storage was packed leaving no option but to gate check your bag or worse, have it thrown in with all the other luggage to be lost upon arriving at your final destination.  (And you know what its like to go without a […]

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Distributions, S-Corporations, Taxes

What is Basis?

Posted on by Paul McCann
19
Nov

Every profession has them.  Names, words, jargon or acronyms that only people in the profession use.  The words are designed for insiders to communicate with insiders.  The mere mention of the words keeps outsiders at bay.Tax accounting has more than a few.  Amortization, bonus deprecation, MACRS, any phrase containing the word “section” and of course, the word “basis”. ​The insider jargon makes accounting all but impossible to unders […]

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Practice Management, Pricing

What’s Your Time Worth in Big Macs?

Posted on by Paul McCann
02
Nov

Measuring value is an extremely challenging topic for anyone to undertake. The most popular value is to measure by hour. Whether professional services or employees, each comes with a cost for every hour of time. The algebra for this method is straight forward and, (dare I say) fun. The 2018 federal minimum wage worker ($7.25 per hour) can work for an entire eight-hour day and earn $58. At approximately $4 each, that will purchase 14 ½ Big Mac sandwiches.&nb […]

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Outsourced Accounting, Practice Management, QuickBooks Online

If You Care About It, You Will Track It

Posted on by Paul McCann
23
Oct

Calories. Blood sugar level.Cholesterol.Money. Weight.If we care about it, we track it.So when someone questions the profitability of a segment of your business, that answer should be readily available. For example, is that office making you money?Simple question. ​Is the investment you have allocated undertaken in time, energy and capital producing a return adequate to compensate for the risk taken? ​ It should be a simple question of pulling a f […]

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Practice Management, Taxes

Did My Practice Get a Tax Cut?

Posted on by Paul McCann
15
Oct

With the tax cuts passed in December of 2017 and most of them taking place in tax year 2018, many professional practices are asking if they received a cut. While the cuts were broad and impacted most industries, there are some who will see no business tax cut. The Tax Cuts and Jobs Act (TCJA) gave the individual taxpayer a reduction in rates, reduced the number of brackets, almost doubled the standard deduction and made all sorts of problems for individuals in high tax states, b […]

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Practice Management, S-Corporations

How Much Should I Pay Myself?

Posted on by Paul McCann
05
Oct

The question of owner’s compensation is a hot issue for small businesses paying taxes as either an S-corporation or a C-corporation.  When the business files taxes as a corporation, the owner must also be paid as an employee.  Not only is the owner the investor, s/he is also an employee.  For the purposes of this post, let’s assume the business is filing as an S-corporation.Creating a compensation plan for your employees is hard enough, what should you consider when d […]

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Practice Management, S-Corporations, Taxes

Will Forming an LLC Save Money on Taxes?

Posted on by Paul McCann
28
Sep

​WARNING: This is an extremely dry topic. Reading this post may result in drowsiness, restlessness and/or irritable behavior. Do not consume alcohol in excess and never operate motor vehicles or heavy machinery while reading this post.  McCann Advisors makes no warranties of any kind, either express or implied, including but not limited to warranties of merchantability, vague interest by the reader, fitness for a particular purpose, of title, or of noninfringemen […]

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Outsourced Accounting, Practice Management, Software

Case Study: Optometrist Saves 20-30 Hours Per Month by Going Paperless

Posted on by Paul McCann
24
Sep

The hours of paperwork and bills in running Family Optometry business were taking their toll on Dr. Eric Dale. He loved taking care of his patients and leading his team, and he led the organization of 18 staff and three offices, including three other optometrists working with him. But he was exhausted, and he didn’t have any time to spend with his family. When an optometrist from a neighboring community approached him about Family Optometry purchasing his practice, Dr. […]

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