Advice, Preparation . . . Results™


Be Prepared – Prove your Small Business is Loan-Worthy

Is your small business in need of a few extra bucks this year? Whether it’s monthly or seasonal budget planning, cash flow shortages, operational needs, unplanned expenses or that persistent roof leak, financial resources – or lack thereof – remain the ongoing challenge consistently facing small businesses.

Unless you’re independently wealthy or can rely on family or friends to support you in the life and business growth of your company, traditional financing may prove your best option.

As an astute business owner, you know the complexity of financial planning in managing a small business, and a bank loan might be the best solution to help you grow and succeed. Outside financing can provide necessary cash flow and financial stability, especially in covering day-to-day expenses, including payroll and inventory.

Before you apply for a loan at your local bank, get thoroughly prepared:

  • Determine what type of loan you need:
    • One-time loan to finance a specific project, such as purchasing more equipment or making renovations;
    • Line of credit to provide flexibility for short term cash flow;
    • Small Business Administration (SBA) loan to offset start-up costs;
    • Commercial mortgage to renovate or expand your facilities.
  • Offer a well-thought-out and documented business plan. To ensure you discuss all areas bankers want to see, consider using a template, such as the one offered by the SBA, and adapting it to your particular business. Be sure to include:
    • Balance sheet, detailing profit and loss statement;
    • Projections of future income and expenses;
    • Marketing and promotion plans;
    • Business legal documents (e.g., articles of incorporation, commercial lease, franchise agreement);
    • Your most recently-filed business and personal tax returns.
  • Provide evidence of collateral detailing:
    • Real estate holdings;
    • Bank account balances;
    • Business equipment and inventory;
    • Accounts receivable;
    • List of additional income sources.
  • Prove why you meets the six C’s of credit:
    • Provide payment history reflecting consistently-met financial obligations;
    • Illustrate your ability to repay the loan;
    • Asses monthly funds left after subtracting your monthly debts;
    • Outline stability of your business, past repayment of debts, employment history (if applicable);
    • (Refer to above);
    • Cash flow. Provide financial statement reflecting ample profits to meet loan requirements.

Being prepared for the borrowing process can save headaches, prevent surprises, and put you in a better position to receive a positive response from your lender.

If you need a proven accounting firm to assist with your small business loan, tax preparation or financial planning, the CPA team at Patrick & Raines is a member of Florida’s Small Business Resource Network and P&R holds decades of experience serving the small business community. Let us know if we can help: or 904-396-5400.

Understanding the New Tax Reform Bill: Changes Affecting Business

In our last blog, we offered an overview of the Tax Cuts and Jobs Act and discussed items that affect your 2017 income tax return.

Now let’s look at changes affecting business income taxes (and associated business growth) in 2018, which will be reflected on your returns next tax season:

  • The big news is a flat 21% rate on C corporation income. Pass-through entities receive a special 20% deduction to take on the owners’ returns to provide similar tax relief, but there are some significant and interesting limitations.
  • Capital assets acquired after 9/17/17 are 100% deductible under bonus depreciation rules, phasing out after 2023. Real Estate is excluded. Section 179 deductions are allowed on up to $1 million of asset purchases, before phasing out completely when income is above $2.5 million per year.

Allowable items now include lodging furnishings and non-residential roofs, HVAC, alarm, fire and security protection systems. Remaining items are depreciated at lower real estate property lives of 25 years and qualified improvement property of 10 years. Grab this opportunity while you can, as these high profile provisions affect significant tax revenue.

  • Business entertainment now excludes amusement and recreational facilities, related membership dues, etc. Club seats and booster tickets will take a big hit here. Traditional business meals keep the 50% deduction.
  • Business interest is limited to 30% of gross revenue to discourage bond financing over stock.
  • The popular Domestic Production Activities Deduction stops for tax years beginning after 2017. Some business credits are repealed – employer-provided child care, rehabilitation, new market, and disabled access. R & D credits survive, but expenditures are now amortized over five years.

For additional information, we’ll be posting our annual tax newsletter to our Helpful Resources P&R Publications link soon, and it provides more details on this historic tax legislation.

Of course, if you need a proven tax accounting firm to assist with your tax advice and preparation to achieve the financial planning results you desire, our team is available to assist you.

Contact us at or 904.396.5400.

Tax Reform Arrives . . . Changes Affecting your 2017 Tax Return

Welcome to President Trump’s long-awaited tax bill, the Tax Cuts and Jobs Act. Since the reform purports to overhaul the entire U.S. tax code by making our individual and business income tax return process simpler, virtually all taxpayers will be affected in some way.

Is the tax reform law good or bad for you? You’ll need to run the numbers first, but suffice it to say the extent of your changes will likely depend on your income bracket, current filing status and typical annual deductions. Most will be in a better place, but it appears a few of us may need to tighten our belts just a bit.

After reviewing the major tax changes, some answers are available now, but many details remain uncertain until final regulations and forms are produced over the next year or so.

With 1,097 pages in the Act, we’ll highlight the 2017 income tax changes first, (with additional information regarding 2018 changes outlined in next week’s blog), many of which you’re likely familiar with already.

With some trimming here, some make up there, and a few unexpected surprises, your 2018 income tax return will look different. Until then, note some changes before you file your 2017 individual and business income taxes. Plenty of time remains to learn and prepare before planning next year’s taxes, since only three significant changes affect our 2017 taxes:

  • The medical deduction threshold dropped from 10 percent to seven and a half percent of adjusted gross income (AGI), but only for two years.
  • The mortgage interest deduction on your home is still limited to the interest on $1,000,000 plus that on the first $100,000 of a home equity line of credit (HELOC), unless your new loan initiated after December 15, 2017, for which the limit will be based on a $750,000 mortgage. New HELOCs receive no deduction. Refinancing will qualify under the old limits, but a cap remains based on acquisition costs.
  • Capital assets acquired after September 17, 2017 are 100% deductible under bonus depreciation rules, phasing out after 2023; real estate excluded.

After months of speculation, lobbying and political pontificating, we’re following a new, and some would say, improved, tax code. Most of us will be better off in some ways, but a few will be disappointed. This simplification of our filing process should prove beneficial, regardless of your tax bracket.

For additional information look for our upcoming annual tax newsletter, which provides more details on this historic tax reform. And remember, if you need a proven tax accounting firm to assist with your tax preparation or financial planning, our team is available to assist you. Contact us at or 904.396.5400.

New Year’s Resolutions . . . for your Business

For many of us, beginning a year wouldn’t be complete without the tried and true New Year’s resolutions. Scores of us vow to start eating healthier…exercising more often…and seeing your CPA regularly. Wait, what?

If you’re a fan of setting individual goals for the year, don’t forget goals for your business—something our proven accounting team can help you with. Now’s a great time to examine your company’s financial health and look for ways to keep it on track. Why not make a resolution to get you and your business in tip-top shape?

Considering adhering to a few healthy business practices for your company in 2018:

  • Review your books on a weekly basis:
    • Evaluate your cash flow forecast;
    • Make revenue projections based on past income sources;
    • Monitor your revenue earned and expenses incurred;
    • If an unanticipated monetary issue arises, rectify it in a timely manner.
  • Remain vigilant regarding tax planning parameters (and of course, we’re here to help!):
    • Make certain your business taxes are filed properly;
    • Review current federal and state tax regulations and changes;
    • Evaluate current IRS regulations regarding appropriate deductions and credits;
    • Stay informed about new tax laws and codes that may impact your bottom line.
  • Review growth and revenue objectives:
    • Did your company grow or shrink, and why?
    • Compare your revenue and profit margins from the past year to the year before. How effectively were your goals met?
    • Assess expenditures versus revenue to determine upwards or downwards trends;
    • Prepare for unforeseen expenses now to prevent future financial challenges.
  • Remain technologically savvy:
    • Update your website to feature new products and/or services. Content is king in the digital world, so keep it updated and current.
    • Offer a client-friendly App service to stay connected to your customers on the move. We even follow our own advice: watch for the new P&R App coming soon!

The beginning of a new year is an exciting time. You start fresh while planning for the new year’s successes. To make 2018 your best year yet for your business, consider adhering to these tried and true business resolutions.

And we’re here to help you stick to your plan: consider us your business growth consultants—so you can focus on your clients. We’ll help you run your company throughout the year. Contact us at or 904-396-5400.

With the New Year, We Introduce a New Name with the Same P&R You Trust

Your CPA team brings you warm wishes during this chilly start to the year and hope you’re anticipating a good 2018.

We’re announcing some news to start the year:

  • Adam left to pursue a new opportunity at Hartman, Blitch & Gartside. He’s been an integral part of our growth for more than 15 years and we truly wish him well in this new venture.
  • We added Tim to the firm name to become Patrick & Raines CPAs. We’re the same tax and accounting firm you know and trust, with a new name.
  • Even as some things change, others don’t: P&R remains a leader among locally-owned and managed CPA firms, serving privately-held businesses with tax and assurance services, plus those with individual income tax challenges.

Client service is—and always has been—our primary objective. Our approach to the complex world of finances is to make it as simple and painless as possible for you. Moving forward, the strength of our accountant team remains substantially intact, and we’ll continue adding staff with the expertise needed as we grow with you.

We’re humbled and honored you trust us to be on your team of financial advisors. Thank you for your many years of support, confidence and friendship. Your loyalty enabled us to grow and evolve to meet the demands of an increasingly challenging world.

Please contact us any time for assistance in meeting those challenges at or (904) 396-5400.

On behalf of the entire P&R Team and our families, we wish you a happy, healthy, and prosperous 2018!

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What Our Clients Are Saying

I am so much more comfortable with how our finances are now being handled. Thanks for your help!
Dr. Randy T. HodgesSenior Pastor HernandoChurch of the Nazarene

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