California clearly isn’t the easiest place to strike it rich or even earn a decent living, making it more important than ever to get great accounting help for your businessin the Golden State. Some may think that this issue doesn’t affect business owners, since annual wages affect employees more than employers, but living in a state with a low average salary affects everyone. Trends toward low earnings tend to affect company-wide profits as well, and in a climate where employers are not able to offer a high wage to employees, morale and productivity are sure to be lower. Fortunately, a good tax expert and business accountant can help make the most of this highly competitive, difficult and strenuous business environment.
Understanding the Statistics
The recent gloomy statistics about Californians’ earnings come from MoneyRates.com, based on calculations of cost of living, state income tax rates, average annual wages and unemployment rates in every state. California ranked 44th out of all the states in the union, with an adjusted average income of $31,459. This rate is up from the average income of $29,772 the previous year, but still not good. Considering that many California cities have extremely high costs of living and high tax rates, coupled with competitive environments where there are more qualified job applicants than there are jobs, one can see how tricky things are in this state.
There are worse places to earn a living, though, such as the island paradise of Hawaii. There, the adjusted average income is $22,394, while the cost of living is the highest in the country. Virginia seems to be the best place to earn a living at the moment. The adjusted average income is $43,677 there, with a lower cost of living.
The “Good News”
Living in a competitive environment makes it more important to get great accounting help for your business, not only for your benefit, but also for the benefit of your employees. The better wages a business is able to offer, the more qualified employees they are able to attract and retain, and the more productive and profitable they are able to be. Without a good accountant and tax expert, on the other hand, it’s likely you’ll watch your business become one of the many that shut their doors each year. Qualified, reputable and experienced accounting consultants can help create a balanced budget and higher returns for small to medium-sized businesses operating in the Golden State.
Allen Barron, Inc. is eager to assist you with your accounting needs for your business. To schedule a complimentary, initial consultation with one of our accounting professionals, please give us a call at 866-631-3470.