June 2017 - Page 2 of 2 - AccountingX

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Month: June 2017

Southern California Controller Services Knows the Advantages of Forming an S-Corp

The Advantages of Forming an S-Corp

Southern California controller services knows the value of an S-Corp, here are some of the advantages if your thinking of going this route.

An S-Corporation is a special tax status for which your business can apply with the IRS after it is formed. An S-Corp is treated as a pass-through for federal tax purposes. This gives the business several advantages when it comes to how tax regulations are applied to the business.

 

Avoid Double Taxation While Structured as a Corporation

Instead of both the business and the shareholders paying federal taxes on the same business income, the S-Corp business is not taxed on its profits. The taxes are passed through to the shareholders. This frees more assets for the company and can increase profits. This is similar to an LLC, but as a corporation, the S-Corp is not required to pay self-employment taxes either.

 

Protection of Owner’s Personal Assets

The owners of an S-Corp have limited liability for the actions or debts of the company unless they have personally signed papers taking responsibility. Creditors and banks cannot come after the owners’ personal possessions or assets if the business falls into financial difficulty.

 

Enable Better Long-Term Planning

Unlike an LLC, S-Corps are independent entities and will continue to exist even if the original owner or owners leave. If the owner does decide to sell out or leave, their tax liability is less than if they were selling a C-Corp.

 

Easier to Transition Ownership

If the founder or owner needs to leave at some point, the transition of ownership is easily handled by selling stock. This is far less complicated than the requirements some other forms of business incorporation require.

If this sounds like a helpful structure for your business, consider looking into whether your business is eligible for S-Corp status. If your not sure if this is a good fit for your business southern California controller services like AccountingX can help you determine the correct route to take. For more information, if your business is eligible click here.

Southern California Controller Expert: Tips on Cyber Security for Medical Practices

Southern California Controller Expert: Tips on Cyber Security for Medical Practices

Recently the media went crazy over the ransomware cyber-attack on UK hospitals and across Europe. Last year in California and Kentucky hospitals were hit with the same type of attacks, the reason hospitals and medical practices are subject to these attacks more so than other organizations is because healthcare cybercrime is a lucrative business on the dark web. Dell had reported that in July 2013, EMC that hackers at that time were selling documents like Social Security numbers, bank accounts, health insurance credentials and counterfeit documents for $1,000 per each dossier.

As more medical practices turn away from processes that are paper-based, cyber-attacks grow. Hospitals and medical practices need to coordinate all their efforts around the entire information system, protecting all the data, not just what is considered the most important or the top layer. If organizations don’t then a good hacker will find their way in to get to the data they want.

Currently, 50% of cyber-attacks go unnoticed by antivirus software, putting many practices at a higher risk than they realized. The data is usually sold on the dark web which is a part of the web that is hidden and not accessible through your normal everyday web browsers. This allows the users to remain completely anonymous.

Protecting Against Cyber Attacks

A Southern California Controller knows having organizational policies in place for social media, BYOD (bringing your own device) and employee access to the network can help control being a target for these cyber criminals. Medical practices can take some precautionary measures as well against cyber-attacks with assessments of their networks periodically.

Assessing the current state of readiness and the ability to detect, identify, and protect, from security incidents, puts the organization in a position to attain a level of readiness moving forward. This puts the medical practice in a position of strength.

How do Medical Practices Ensure Cybersecurity?

Determining a medical practices cyber-attack preparedness is more critical than ever before. Every organization, regardless of size, location, and industry, must re-evaluate all areas. Are cyber security risk assessments performed periodically? Is there s security plan in place? Is the correct team with the right knowledge in place? What technologies have been currently deployed to protect the practice’s data?

This is just the beginning. Cyber attackers are more sophisticated in their tactics as our culture becomes more rooted in digital record keeping. If you would like to speak with Southern California Controller regarding your medical practice click here.

 

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