Wednesday, July 31, 2013

Benefits of Hiring An Outsourced CFO

At times businesses may need an extra hand to help handle all of their accounting needs. For a small to mid-size business the costly price tag for a top tier CFO may not be the best solution. Outsourcing a CFO is a growing trend in the accounting industry and should be considered when making strategic business decisions.

Many businesses miss out on what a CFO can bring to the table due to their budget and other concerns. The business owners try and handle all the finances themselves along with daily tasks. There is so much that goes into operating a business that no one person could possibly do it all effectively. That’s where an outsourced CFO like David Scotch comes in.

David’s expertise in providing a strategic outsourcing solution stems from many years of experience in the role of Financial Controller. Developing a business plan, budgeting and forecasting, obtaining financing, developing management information systems and managing working capital are just some of the roles a CFO can fill as well as:
·      Business Analysis
·      Creative Insight
·      Experience and Knowledge

All companies no matter the size could benefit from an outsourced CFO. All companies have the same needs for business and financial management, but sometimes smaller companies can’t afford a full-time CFO. Instead of ditching one altogether, look into hiring a part-time CFO for specific needs.

Contact David A.Scotch, CPA to answer any questions or concerns you may have, or to look into hiring us on as your one-stop CFO shop!

Tuesday, July 23, 2013

Change on the Homefront

Possible Reform Of U.S. Mortgage Interest Deduction Into Tax Credit

If there is anything that keeps Americans on their toes, it’s change. A total tax reform on the U.S. tax code is a hot topic for 2013 with talk about altering the mortgage interest deduction that costs the federal government at least $70 billion a year.

According to the Internal Revenue Code, the U.S. currently allows a home mortgage interest deduction, meaning it allows home-owning taxpayers to reduce their taxable income by the amount of interest paid on their loan. While intended to encourage homeownership, the deduction is highly geared towards Americans who need little assistance affording a home rather than helping the struggling homeowners.

The Center on Budget and Policy Priorities (CPBB) said in 2012, 77 percent of the benefits went to homeowners with incomes above $100,000, while middle- and lower-income families receive little to no benefit from the deduction.

Recent proposals offer the idea of converting the deduction into a tax credit for mortgage interest.

“A tax credit is a much fairer way to help homeowners, especially those that need it, like lower income families,” said Will Fischer, a senior policy analyst at The CPBB.

While it is one of the largest expenditures in the tax code and its removal could help the U.S. budget, some still fear taking it away would harm the economy and reverse the slowly recovering housing market.

“Home prices, particularly in high cost areas, could decline 15 percent if recommendations to convert the mortgage interest deduction to a tax credit are implemented,” said the National Association of Realtors.

This in turn could slow the housing market and increase the numbers of renters than homeowners due to buyers knowing ahead of time that they won’t get that benefit each year.

Things are still up in the air right now, but we can expect to see some movement with the tax code soon.

House Ways and Means Committee Chairman Dave Camp (R-Mich.) said he would like to see a total tax reform package before the end of 2013.

Those trying to change the mortgage deduction will not find it easy, but many hearings are scheduled through summer and fall to get things moving.

“You can’t say for sure what will happen in Congress, but I think there’s a lot of momentum to finally change the mortgage interest deduction,” said Fischer.

David A. Scotch P.C., CPA