How Adding a 401(k) Can Improve Your Business

How adding a 401(k) can improve your business

A 401(k) plan has a lot of benefits for businesses. It is important to employees but it can also help you to retain and attract new talent. We discuss why adding a 401(k) plan is the right move for your business.

Benefits of Adding a 401(k) Retirement Plan To Your Business

Retirement benefits can help to improve your business outlook. Here are some ways it achieves this goal:

  • It helps your business to recruit the best talent

It can be tough to find the right candidates for your business. When candidates and potential staff are considering your business, they don’t just look at the salary on offer, but they also consider retirement benefits to be important to them. Adding a 401(k) plan can help your business hire and retain the best staff to help your company grow.

  • Lower tax for employees and employers

When business owners and employees contribute their salary to a 401(k) plan, their income is reduced, which puts them in a lower tax bracket. The result is they both pay a lower tax liability at the end of the financial year. 

  • Lower tax deductions for businesses

A 401(k) plan contribution by an employer may qualify as a business expense, which automatically makes them tax-deductible. Small businesses can especially benefit from 401(k) accounts as any matching or profit-sharing contributions are tax-deductible, giving them a much-needed saving on business tax.

How to add a 401(k) plan to improve your business?

Business tax can be a significantly large portion of a business’s expense. Small businesses and start-ups can benefit the most from taking advantage of a 401(k) plan for tax deductions. Larger benefits can increase productivity and employee loyalty to their business by providing them with retirement benefits. 

To add a 401(k) plan, you need to hire a financial accountant or bookkeeper who will help you with payroll services and retirement benefits. An accountant can help you with tax preparation and deductions that come from the 401(k) plan.

If you’re looking for a professional accountant to assist you with your 401(k) plan tax deductions, give us a call today!

5 Ways Your Non-Profit Can Save Money

Tax preparation for non-profit businesses

Is your non-profit organization experiencing cash-flow problems? Tax preparation is one way you can save money. Find out other ways to save money here.

  • Reuse and recycle material

Some non-profits require materials daily. These include t-shirts and posters for fundraising events. Although necessary, creating new material all the time can add up to costs in the long run. Save money by reusing and recycling material where possible. Ask staff to reuse dry clean t-shirts, table cloths, and covers and reuse posters where possible to save cash.

  • Recruit volunteers

Volunteers are a great option when you’re short-staffed. A lot of people want to help out non-profits that mean something to them and will be happy to do so without a paycheck. Make sure you provide them with reasons to join your non-profit, such as showing them how they will be helping others. You can also offer unpaid internships to younger members and provide them with a letter of completion at the end of the year to help them enter the workforce.

  • Try to go paperless

The cost of ink, paper, and even pens can start to add up. Apart from saving the environment, going paperless will reduce a lot of costs. Try investing in digital solutions and filing systems such as QuickBooks which make sorting documents easier and will save you money in the long term. Quickbooks is easy to learn but if you need a QuickBooks advisor, Georgen Scarborough can help out.

Did you know you can save money by hiring a professional such as an accountant to handle your taxes? It may seem tempting to do it yourself but an accountant can find you tax breaks you didn’t even know you had with a non-profit organization. Apart from that, they can also help you to reduce unnecessary expenses and provide you with tax advice.

Georgen Scarborough has professional tax accountants who can help you with your taxes, accounting, and finance. 

Give us a call today for tax preparation for your non-profit organization!