When it comes to running a business, there's one financial question that can spark endless debates at family dinners: is it a loan or a gift? If you've ever been in a cash crunch and turned to family or friends for help, you know exactly what we're talking about. But let's dive into the nitty-gritty to save you from the IRS's watchful eye and, more importantly, avoid awkward Thanksgiving conversations.
Picture this: a new client walks into my office, brimming with excitement about their studio's potential. They mention that their Aunt Susie lent them $10,000, but there are no formal terms. Just a casual "pay me back when you can." Now, that's sweet and all, but folks, Aunt Susie isn't doing your taxes, and the IRS is not known for its warm and fuzzy side.
Here’s the scoop: If there’s no agreement, it's not a loan—at least not in the eyes of the IRS. So unless you're looking forward to an impromptu audit, let’s get those ducks in a row.
For studio owners, entrepreneurs, and women-owned companies, clarity in financial matters isn't just nice to have—it's essential. Whether you’re building a business to support your livelihood, planning for retirement, or simply wanting to live life on your own terms, a solid financial foundation is key. Here’s how to keep it clear:
At pyop accounting, we believe that financial management should be as smooth as your favorite latte. We provide dynamic support to make your studio not just a workplace but a thriving community hub. Picture a place where your business supports you while you support it, with financial systems baked into its very DNA.
Key Takeaways for Studio Success:
So, next time you're sipping coffee with a potential lender (or gift-giver), make sure you both understand the terms. It's about more than just keeping the IRS happy; it's about maintaining harmony in your business and personal life. Because let's face it, life is too short for low returns on big energy.
Ready to take your studio to the next level? Reach out to pyop accounting—your full-service CPA and business growth experts. Let us help you transform your passion into a profitable venture.
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. You can email me at [email protected].
Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.