Valerie VanBooven RN BSN:

This is Valerie VanBooven with the Senior Care Industry NetCast, where leaders with three or more years of experience in the senior care market share their advice. So let’s get to it. In a few sentences, tell us who you are and what you do.

Kevin Linhart:

My name is Kevin Linhart. I’m a certified public accountant and a certified tax coach, and I’m the owner of KL Accounting Solutions. My firm specializes in assisting senior care businesses, and we take a very different and unique approach from your traditional accounting firms. We take a more focus on actually building a relationship with the clients and taking active interest in their business where traditional accounting firms you might only hear from them around tax time. We meet with our clients monthly and sometimes even more often than that. We learn about their business and their personal goals, their families, their hobbies, and that really allows me to understand their needs. And we focus primarily on advisory level services, such as cashflow projections and tracking, budgeting, forecasting, key performance indicators, industry benchmarking, and ratio analysis. And what … Oh, go ahead.

Valerie VanBooven RN BSN:

No, I was just saying wow. And you know what? Those are all … for me, because I’m glad there are people like you in the world because numbers are not my gig. So I have someone else that does that much like you. And so that’s awesome.

Kevin Linhart:

Thank you. Thank you.

Valerie VanBooven RN BSN:

[crosstalk 00:01:42] in performance analysis and projections. What? Who? So yeah, no, I think, you know what? everybody needs … if you’re in business and you’re a serious small business, you need somebody with a financial and numbers brain in their head to assist you. Whether that be a business partner or someone you hire to be your not so official CFO, whatever you want to call it, but having somebody like you who really gets it is so important. So keep going, finish … keep going with what you guys do. [crosstalk 00:02:21] Indicators and then I was like, “What?”

Kevin Linhart:

I think probably the most popular thing we offer is as I like to call it advanced tax reduction strategies. So this is where we’d take an in-depth review of the prior year tax returns and identify different strategies that we can implement that oftentimes save an upwards of tens of thousands of dollars in tax liability. And that’s what I really enjoy doing. It’s a puzzle and I like putting the pieces together to make sure that I’m going to save my clients as much money as possible.

Valerie VanBooven RN BSN:

Yeah, that’s awesome. Because as I barely know the tax code is super complicated and there are so many things that a company can do to help themselves. And without a professional on board that does this, it’s impossible to keep up with all of the changes in the tax code, all of the new things, old things, and also run your business and be an expert in your own business. So, yeah, absolutely.

Kevin Linhart:

Right. Especially with everything going on, it’s changed so many times over the past year, year and a half.

Valerie VanBooven RN BSN:

Yeah. Just figuring out. And this is a whole another show by itself. If you took out a PPP loan, just figuring out how to appropriately put that in your P&L for last year or where should that really go. What turbo tax tells you might not be exactly like most do. So how does that look? What does that do? How does that not kill you on taxes if you took that and you really didn’t need to use it, which is good for you if you didn’t need to use it, a lot of people did. It’s a crazy last 14 months or more that changed things 500 different times. So yeah, it’s really important to talk to somebody. All right. So how did you find your niche of doing healthcare businesses?

Kevin Linhart:

Yeah, so that’s a great question. So a number of years ago, I worked in public accounting for an accounting firm. And the very first client that I was assigned was a home healthcare business. And since I was assigned to prepare their tax return, I noticed that they were overpaying in taxes. A couple changes and we could save them about $50,000. And I took that information to my supervisor and I mean, they weren’t interested in that at all. They just wanted me to complete the return so I can move on to the next one. So that left a bad taste in my mouth. I feel like there’s small businesses out there that could use our help that we should, as professional accountants, we should do everything we can to help them. So when I started my firm, I remembered back to that moment and that’s what made me decide to I’m going to help specifically home health businesses, and I’m going to take that more active approach in their business, making sure to really help them, making sure they’re saving every dollar possible.

Valerie VanBooven RN BSN:

Yeah, that’s great. That’s a great illustration of also when you’re not getting personalized service, if it’s just a matter of getting your taxes done and getting on to the next tax return, that’s not personalized service. That is H&R Block kind of stuff. So you really … although it’s always important to use somebody to help you with your taxes, it’s also important to, I think, and I can see this from our point of view as a business, how we handle our finances and who we have that helps us understand better what we should do. If you don’t have somebody that will talk to you on a regular basis and answer questions, especially all the questions that came up in the last year.

Valerie VanBooven RN BSN:

I mean, it just was craziness, and we were lucky we didn’t have any problems really, but we still had to stay on top of a bunch of weird different things just to make sure we were doing the right thing. So I really, I think it’s not just that once a year transaction. So thank you for helping home care businesses, because there are rules and regulations and the hoops that they have to jump through already are insane, not just … and they’re for good reason. I mean, we’re trying to protect human lives and we’re trying to protect families, but from a financial standpoint, I mean, one bad move could ruin you as a home healthcare agency, especially if you’re dealing with Medicare and Medicaid. So you have to be really careful with all the things that you’re doing. It’s not just taxes. It’s a lot.

Kevin Linhart:

Right.

Valerie VanBooven RN BSN:

All right. What’s the best thing about working with home health care businesses?

Kevin Linhart:

Yeah. So I think the best thing, I find it to be a rewarding experience. Even though I’m not patient facing, I don’t have anything to do with taking care of the patients, owning a business is a lot of work. And if I can make that burden easier on the business owner by handling their accounting and tax work and all those behind the scenes financial things, then they’re able to focus on hiring and training more caregivers. They can advertise their services in order to get more clients that need the help and overall providing the better care to the clients. And I find that really rewarding. That’s probably what I enjoy about it most.

Valerie VanBooven RN BSN:

Yeah. It’s great to work with folks that are providing a service that is … it’s actually there in service to others all the time and for helping them be able to take that, whether payroll or whatever it is, it’s all year. There’s so many things to consider. So are there any industry specific tax things or tax tips or things at home health care industry specific function?

Kevin Linhart:

Yes. I don’t think there’s anything specific to home health. However, there are many, many tax strategies that they can take advantage of. For example, we talked about all the changes that have happened the past 14 or so months. And right now a big thing is the employee retention credits, which was just recently extended to the end of 2021. That’s one thing I’ve been helping a lot of my clients with. It’s a $7,000 credit on payroll taxes per employee per quarter for eligible employers. And now, even startup businesses, which are businesses started after February 15th, 2020, they’re eligible as well for a credit up to a maximum of 50,000 per quarter. And that can be applied to third, fourth quarters of 2021. So even though it’s not specific to home health care businesses, there is a lot of strategies out there that can be implemented to get some money back in the pockets of those business owners.

Valerie VanBooven RN BSN:

Can you explain what that … just because that’s interesting to everybody. What’s the employee retention tax credit?

Kevin Linhart:

Right. So that came about during the CARES Act. It was to help businesses keep employees on the payroll. So what it is, is if a business suffered a shutdown or a significant loss of revenue comparing 2020 to the same quarter in 2019, it would be eligible. I think for 2020, it was $5,000 per employee for, I think it was a total of 50,000 for the year. And then now for 2021, it’s 7,000 per employee and that’s per quarter. So it can be significantly higher now in 2021.

Valerie VanBooven RN BSN:

That’s nice. So if you had a significant loss but you still kept some number of people gainfully employed for that period of time, then it’s something you really need to look into.

Kevin Linhart:

Right.

Valerie VanBooven RN BSN:

And I would tell you that I would say in the home healthcare industry, there are a lot of home care agencies who probably did take a significant loss. I’m sure. I mean, in fact, I know there are in 2020, but they still had to keep staff and they still had to keep their office running and they still had clients with regular caregivers that stayed employed that whole time. So anybody who might find themselves in that position should at least check into it and talk with somebody about it. And while we’re on the subject of that, what’s your local service area or are you nationwide?

Kevin Linhart:

So I’m 100% virtual, so I serve nationwide.

Valerie VanBooven RN BSN:

Yay. That’s awesome. We love to hear that. That’s great. So anybody can come to you. It doesn’t matter what state they’re in and you can help them. Okay, great. We’ll keep going down the road here. What piece of advice would you give to home health care agencies out there?

Kevin Linhart:

Yeah. So my piece of advice would be you get what you pay for. We’ve talked about those accounting firms that don’t really take an active interest in the business. The H&R Blocks, that TurboTaxes that offer the super low prices. Although those prices are very enticing, don’t underestimate the value that a good accountant can bring to your business. I believe that your accountant should be taking an active interest in your business. They should be meeting with you regularly, and they should be coming to you with ideas on how to increase profitability or tax saving ideas.

Valerie VanBooven RN BSN:

Uh-hmm (affirmative). And let me ask you this question. If somebody has had an accountant who has been doing their taxes for years, and they’re pretty much transactional. They’re not really someone like who’s going to take a strong look at things and say, “Well, you might try this. You might try that. Have you thought of this?” What would they need to do to say, “I don’t know if you can help us.” I don’t know. Would you be willing to look at their last couple of years of tax returns? Or how does that work if someone’s interested in talking to you from the healthcare industry?

Kevin Linhart:

Yeah, that’s a great question. So I offer a free, I call it kind of a discovery meeting. I’ll get to know about their business and see where I might be able to help. And I also offer a free tax return review right now that tax season’s over. I’m currently offering that for prospective clients. And then for that, I’ll get their prior year returns. I don’t need any personal information. They can redact all that. They would upload it to my secure client portal. And then I would spend probably about an hour or two reviewing it so then I would set up a meeting with them and talk over the findings and potential savings. So both of those options are what I have going right now.

Valerie VanBooven RN BSN:

I think that would be perfect. I mean, really, you can’t make a good recommendation to them or know if you can help them, unless you can see maybe their P&L and their last year tax returns or whatever they’re willing to share with you to know if you can even help them and what kind of business they are and how many employees they have. Just certain information you need to have. And I think that’s absolutely. So if you’re a home care agency, a home healthcare agency and you are getting your taxes done, but it’s fairly transactional, meaning you don’t really talk to them about anything specific over the course of the year. It’s just tax time done. Here you go. And you wanted to know if number one, are you doing things right? Number two, is there something that could be happening that’s better for you? Is there a way that you could have saved money or can save money in the future? I think that is what a consultant role is more so than a transactional role in accounting.

Valerie VanBooven RN BSN:

And just like for me, for our core business, we do websites and content and SEO. And we do all these other complicated things. This is another one of those things where when you have a professional service come in, this is not your area of expertise. You got into this business to help people. So having somebody come in like Kevin, who can take a look at all the finances and steer the boat in the right direction from that perspective is really … it can be worth tens of thousands of dollars.

Kevin Linhart:

Right.

Valerie VanBooven RN BSN:

Yeah. I know I’m putting words in your mouth, but I see the value in hiring a professional consultant because that’s what we do. I mean, people are not going to sit around and wonder how to write schema code for their website. They’re just not going to do it. But that’s what we do. So it’s worth, and it can make huge changes in your visibility online and you can make huge changes in their bottom line which is awesome. Right. Well, thank you, Kevin. Thank you for being on the show and sharing your niche with us because it’s so important. And I don’t think we talked to enough people out there who specialize in health care, home health care, senior care. People really don’t know where to turn for that kind of stuff. So thank you very much and we’ll make sure your contact information is with this video so people can get hold of you nationwide. Thank you.

Kevin Linhart:

Perfect. Thank you.