Chris Barrett is a registered CPA and founder of Midwest CPA. He is an accountant and tax professional who provides CPA services to entrepreneurs looking to acquire businesses.
Chris leads the team at Midwest CPA and works with clients to help them assess business deals, conduct due diligence and manage their finance and compliance requirements.
Chris has written a number of insightful articles and spoken at various events and webinars on entrepreneurship through acquisition.
@CBarrett_CPA of Midwest CPA gives his background and shares the importance of obtaining a quality of earnings report during the acquisition process and the importance of having clean books post-closing pic.twitter.com/Gahbbbi9O8
— Matthias Smith, CEO - Pioneer Capital Advisory LLC (@SBA_Matthias) December 10, 2023
Here’s something most young entrepreneurs don’t realize:
The year you buy a business is often one of your lowest taxable income years, which creates a rare tax planning opportunity.
Instead of just surviving year one, you can use it strategically, potentially reducing your lifetime tax liability by making one smart move: a Roth conversion.
Let’s break it down.
Operating a small business from home offers flexibility, convenience, and meaningful tax advantages. One of the most valuable benefits available to U.S. small business owners is the home office deduction. However, while the deduction can lower taxable income, it must be handled carefully. Misunderstanding the rules, miscalculating expenses, or failing to document properly can create unnecessary IRS scrutiny and financial consequences.
Many business owners either overclaim the deduction or avoid it entirely out of fear. The reality is that the IRS allows this deduction when it is calculated correctly and supported with proper records. Understanding the most common home office tax deduction mistakes
As a small business owner, tax season can be stressful, especially if you need extra time to organize your paperwork. Many entrepreneurs assume that filing a business tax extension payment deadline for small business automatically gives them more time to pay what they owe. Unfortunately, that’s not true. Understanding the difference between filing and payment deadlines is critical to avoid costly IRS penalties and interest. So, what is a business tax extension? A tax extension is a request to delay your filing deadline, not your payment deadline. For most businesses, this involves submitting IRS Form 7004 (or Form 4868 for sole proprietors) by your original due date so you get up to six extra months to submit your tax return. It’s a lifeline for busy entrepreneurs, but don’t confuse it with more time to pay what you owe.
Acquiring a business is just the beginning. The real challenge starts the moment the deal closes.
Without a strategic plan, new owners often hit what’s known as the J-curve: a dip in performance, cash flow, and operational stability before things start to improve. This period is critical, and how you handle it can define the long-term success of your new venture.
To thrive through this transition, you need to focus on three pillars: cash flow management, risk mitigation, and accounting system upgrades.
In a move that’s shaking up the Midwest grocery landscape, Schnuck Markets has officially completed a significant grocery store acquisition by purchasing Festival Foods and Hometown Grocers. The deal brings 51 stores into Schnucks’ network, marking its most aggressive expansion into the Wisconsin market to date. This strategic merger is set to redefine grocery shopping in Wisconsin and signals a powerful play by Schnucks to strengthen its regional presence. With many customers wondering “why?”, here’s the Midwest CPA breakdown of what could be behind this strategic decision, and what it could mean for customers.
The Allure of the Vending Machine Business
The idea of buying a vending machine business is appealing for one main reason: passive income. With relatively low startup costs and minimal staffing requirements, vending machines look like the perfect business opportunity, especially in an era obsessed with side hustles and financial freedom.
But while this industry does have potential, it’s not as passive or easy as it may seem.
