Wizard of Ahs: CS CPA Group leader unknots clients’ tax, accounting woes

Sunstreet Lending owner Richard Furman isn’t a rookie in the business world, yet he had an accountant who had him perplexed and frustrated as tax season loomed last year.

“We had a $7,000 tax bill and we couldn’t figure out why,” Furman said. “None of it made sense. We’d increased our withholdings and what we were paying quarterly, but we still owed money.”

After a couple sleepless nights, Furman and his wife, Kristy, decided to get a second opinion from CS CPA Group Taxes and Accounting.

“Apparently, our last accountant didn’t understand how Chapter S Corps and pass-throughs worked,” Furman said. “I still don’t, but Chris (Scoggin) took a look at it for us and in a day or two, we went from owing $7,000 to getting a $10,000 refund.”

Scoggin, managing director of CS CPA Group Taxes and Accounting, was happy to lend a hand.

As an entrepreneur takes the first step in opening a business, there are so many facets to consider: the goods and services that will be offered, sourcing those goods, finding employees, and of course, identifying and reaching a customer base.

Unfortunately, some business owners overlook the importance of tax and accounting services and don’t realize the folly of their ways until they think it’s too late.

The good news, however, is that it’s seldom too late.

While some business owners might feel an accountant is a luxury they haven’t yet grown into, Scoggin said his firm places a premium on value for their clients.

“We want to be an affordable resource for the individual and the business owner,” Scoggin said. “I want to build relationships. For every dollar I charge you, I want to save you 10.”

While some business owners may be comfortable handling their own tax returns and paying monthly sales taxes, at some point, a situation will arise that requires a higher level of expertise.

“We are general practitioners,” Scoggin said. “We handle everything, from the couple who has just retired and want their taxes prepared, to businesses that have much more complex needs. We try to handle any way that a business needs to interface with a government agency, with the exception of certain items like safety and health concerns.

“For 90% of businesses, they’re dealing with governmental agencies, handling payroll taxes, along with tax returns and sales tax. All of those are touchpoints that a business has with the government. And that most business owners don’t have a lot of experience with. We become that entity that can help them interpret government-speak.”

Scoggin said his firm focuses on helping clients find success.

“We want to be the resource for any business starting out in the city of Maricopa,” he said.

The business climate in Maricopa
With nearly 400 businesses as part of his clientele, Scoggin has a finger on the pulse of the business community in Maricopa, and for many reasons, he points out, it’s vibrant.

While the pandemic might have wrecked the economy in some cities across the country, it forced many in Maricopa to reconsider their options, as Scoggin explained.

“When COVID-19 hit in 2020, it was like all of the air went out of the balloon,” Scoggin said. “And since then, I think a lot of people who live in Maricopa and the surrounding communities decided that ‘I no longer want to be tied down to one job, one employer. I don’t want to be commuting up to central Phoenix or, for that matter, Chandler, Tempe or Gilbert.’

“What we’ve seen after that initial shock from COVID was this great entrepreneurial renaissance. We have so many businesses coming to us, saying, ‘Hey, I’ve always wanted to do this,’ or, ‘I got let go from my job when COVID hit and now is the perfect time for me to start doing what I was doing but doing it for myself.’”

The ‘side hustle’ gets serious
Prior to the pandemic, there was always talk about the “gig” economy, people taking second jobs at night or over the weekend to bring in extra money.

Many times, the intentions weren’t that serious. It was kind of a hobby for many people, a way to keep busy.

“But from what we’re seeing now, people are taking those ‘side hustle’ jobs and making them their primary source of income,” Scoggin said. “It’s really exciting to see what’s happening with the entrepreneurial spirit that’s going on. We have a lot of businesses that are starting out in their garage.

“For example, we have one client that’s making custom cutting boards. Another client went out and bought a laser engraving machine. It’s just amazing, the creative ways that are out there to make a living for yourself.”

Looking ahead
As the new year turns, there’s talk of a recession. While that might be the case for some parts of the country, it’s difficult to imagine such a thing happening in Maricopa for an extended period, he said.

“At this point, we’re not really seeing any kind of pullback locally,” Scoggin said. “We expect that the economic activity is going to be about the same as it was in 2022.”

In some ways, 2023 might serve as a minor speed bump on the way to bigger things for local businesses.

“We’re going to be getting past the hangover of the stimulus that was handed out in 2020 and 2021,” Scoggin said. “But we think at the end of 2023, we’re going to be back on the growth path in that businesses are going to start to grow again.”

And a large part of that growth comes from the desire of Maricopans to control their own destiny.

“I see a big move towards people having more control over their own economic future,” Scoggin said.

“As the bigger corporations have decided to pull back and lay off some employees, we’re going to see more people stepping out on their own, who have saved up some money and decided that they want to start their own business. We see this entrepreneurial spirit getting stronger as 2023 progresses.”

Scoggin understands the difficulty that comes with layoffs, but he also sees a toughness in Maricopans. He believes in their strength to turn a negative into a positive.

“Ultimately, it’s an incredibly painful thing to go through, to be let go, through no fault of their own – incredibly painful,” he said. “So many times, we get people in here that say, ‘Hey, I’ve decided that I could go out and I can do this,’ And whatever it is, making cutting boards, cleaning pools, or repairing cars or opening a restaurant, we think we’re going to continue to see that happen in Maricopa.”

A long-term partner
About a year ago, Danielle Byers with Maricopa-based ACP Painting, which also services the Valley, took the decision of whom to hire as her next CPA seriously. While staying local was important, the right fit was the key, she said.

“Every business needs a CPA,” Byers said. “We met with a few different folks, but Chris really stood out to us as someone we could really connect with. He had a great knowledge of not only accounting, but business in general.”

A key component of going local was the comfort factor, Byers said.

“We love the availability,” she said. “We know everyone in that office. If Chris is unavailable to meet with us, we’ll talk with Craig. He’s fantastic, as well. The whole organization is accessible and caring. You can tell that they are concerned with the success of our business.”

Scoggin said his CPAs offer more than just tax preparation.

“We want to encourage entrepreneurs and, in effect, be their business coaches,” Scoggin said. “It just comes along with the other services we provide. I want our clients to call us with questions as they need us and let us help them understand the tax ramifications of a move before they make it. We don’t nickel-and-dime our clients. We’re not lawyers who start the clock when a client calls. Our success, ultimately, is the success of each and every one of our clients.”

After the experience the Furmans had with CS CPA Group, Kristy Furman is a fan.

“Any time we have someone who needs any kind of tax help, I recommend Chris and his firm,” she said. “I only hear rave reviews from the people who take my advice.”