There are more changes in tax credits and deductions for 2019. How will you be affected? Are you prepared? Check out this video to learn more and to avoid taking a big tax hit.

If you have questions on estimating where you stand, please schedule a complimentary consultation to review your tax status and planning needs.

The information presented is of a general nature and should not be acted upon without further details and/or professional guidance. For assistance in identifying and utilizing all the tax deductions to which you are entitled, please contact us, your CPA or tax preparer.

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.

For help managing the reporting for and documenting of independent contractors or to select a payroll service for individuals who should be categorized as employees, please schedule a complimentary consultation to review your needs. We'd be happy to help!

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.

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Why pay more for software and services than necessary? Check out our Resources page for information on discounts available to our clients.

Here are a couple of mission statement examples from large companies who have maintained a successful foothold in the marketplace:  

Harley-Davidson: We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.
 
Darden Restaurants:  To nourish and delight everyone we serve.
 
FedEx: FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.
 
Ford: We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.
 
Levi-Strauss: People love our clothes and trust our company. We will market the most appealing and widely worn casual clothing in the world. We will clothe the world.
 
Microsoft: At Microsoft, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible.
 
NIKE: To bring inspiration and innovation to every athlete in the world.
 
The Walt Disney Company: The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.

Mission Statement or Vision Statement?
 
A mission statement differs from a vision statement because a vision statement communicates what the company wants to be. 
 
Ask yourself what your business’s core purpose is.  What is the impact you want to have on the world?  Once you know, you’ll be able to write your own mission statement. 
 
Sharing Your Mission Statement
 
There are many ways you can share you mission statement. 
 

• Make sure your employees know it.
• Display it in the About section of your website.
• Add it to your marketing material where appropriate.
• Use it when recruiting for new employees.
• If it’s short, use it on promotional items such as mugs and t-shirts.
• Frame it and hang it in your office.
• Mention it in speeches you give.

 
A mission statement is something to be proud of and something that should make people smile. Yours should motivate and energize you. Once you’ve written yours or if you already have one, be sure to share it with us.

Approximately 4,000 businesses were hit with very bad news this past week when the payroll company MyPayrollHR suddenly shut down. With it's closure, an estimated $35 million dollars of business and employee payroll funds were lost. If your company was impacted by this incident and you need assistance getting back on top of your payroll, please don't hesitate to give us a call or email us. We would be happy to work with you and our reputable payroll provider partners to get your payroll back up and running. (Check out our Resources page for additional details.)

Having enough cash is akin to having a safety net for your business. It can sometimes even mean the difference between staying in business and going out of business. To plan how much you might need for your safety net, you can use a few different methodologies.
 
One way to plan your safety net is to prepare for the worst-case scenario. How long would your cash hold out if no revenue were to come in but all expenses kept going out? Some questions you might ask:

• At what point will your cash run out? How many weeks or months of cash do you have?
• Do you have a line of credit you can tap at a bank?
• Do you have other loans or sources of cash that you can tap quickly in case of emergency?
• What expenses could you shut down without hurting your business if you had to?

 
Another way to plan your safety net is to do what the average business does: acquire the amount of cash you need for two to three months’ worth of operations and keep it on hand. Alternately, you can make a plan to liquidate that much cash on a very fast basis and only put your plan in place if it’s needed.
 
An easy way to get these numbers is to utilize cash flow forecasting tools. A more manual way is to look at your bank statements in conjunction with your average accounts receivable and accounts payable balances. If that’s all Greek to you, no worries. Feel free to contact us and we can help you figure out a safety net number that you’ll feel comfortable with and that will keep your business risk low.
 
Once you have a safety net in place, you’ll gain peace of mind for your business. It’s one step in an overall disaster preparedness plan that you can make for your business.

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.

QuickBooks and Other Discounts Available
Why pay more for software and services than necessary? Check out our Resources page for information on discounts available to our clients.

​In accounts payable, there is a specific subset of rules and controls you can put into place to reduce risk in this area. Here are just a few ideas. 

Approvals 

All bills should be approved by the appropriate level of staff in your business. Sometimes a bill gets approved that is fake or shouldn’t be approved, especially in areas where the approver doesn’t have technical knowledge of what they are buying. Be sure to read the fine print on the bill and make sure you know what you are paying for.

Segregation of Duties 

The person who pays the bill should be different from the person who submitted the bill. These people should be different from the one who signs the check. This reduces employee fraud.
 
Receipt Confirmation 

A packing slip or other confirmation of receipt of the goods or services should be matched to the invoice, line item by line item.
 
Math Check 

A prudent step is to check an invoice’s math, at least for reasonableness.
 
Duplicate Payments 

If a vendor emails their bill as well as mails a hard copy, controls should be put in place (usually automated) to avoid duplicate payments on the same bill.
 
Vendor Reconciliation 

If there are a significant number of transactions between you and a vendor, an accounts payable reconciliation should be performed each month via a statement.  
 
Missing Check Numbers 

Most systems provide a missing check numbers report that you can use to make sure all checks are accounted for.
 
Bank Reconciliation 

A bank reconciliation is a sure way to see exactly what checks cleared your bank account.
 
Coding 

Coding each transaction to the correct expense account, inventory, asset, or cost of goods sold account is an essential part of the process.
 
Income Statement Review 

Each month, a review of the balances in your expense accounts as well as a disbursements ledger review for reasonableness can provide added peace of mind.
 
Purchase Order 

Requiring purchase orders is another control you can add to your process. Purchase orders should be matched to packing slips and invoices before payment or approvals are made.
 
In-Depth Knowledge of Your Business’ Numbers 

The more you get to know the numbers in your business, the greater chance you’ll have of accurate accounts payable handling.
 
If you’d like to discuss your accounts payable function with us and how it can be improved, we’re happy for you to reach out any time. Just give us a call or schedule a consultation.

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.

QuickBooks and Other Discounts Available
Why pay more for software and services than necessary? Check out our Resources page for information on discounts available to our clients.

Do you remember the days when you got a report card from school? Now that you have a business, your business has grades as well. But it’s up to you to calculate them. Here are some grades you can compute for your business to give it a report card of its own.
 
Financial Grades
 
How successful is your business from a financial standpoint? These financial ratios can help you give yourself a grade.
 
Return on equity
 
This ratio measures profitability as it relates to the investment or money you have tied up in your business. The formula is net income / average equity. An ROE of 15 percent or more is an “A” for your business report card.
 
Return on assets
 
This ratio measures profitability as it relates to your business assets. The formula is net income / total assets. A ROA of five percent or more is an “A” for your business report card.
 
Asset turnover
 
This ratio measures efficient use of your business assets. The formula is sales / total assets. This number should be high for low margin businesses and low for high margin businesses.
 
Profitability Grades
 
How profitable is your business? You might know your bottom line number, but there’s more to it.
 
Gross profit margin
 
This ratio measures the financial health of a company as it relates to how much money is available to cover overhead. Calculate it as follows: (revenue – cost of goods sold) / revenue.
The value will be different depending on what industry you’re in, but some say a range of 25 to 35 percent is normal for small business.
 
Net profit margin
 
Net profit margin measures how profitable your business is in relation to the amount of sales you have. As an example, a business that can make $50K in profits on $500,000 in revenue is more healthy than one that can make $50K profits on $3 million in revenue. The formula is net income / total sales, and although it depends on the industry, a net profit margin over 10 percent is considered an “A.”
 
Report cards were important in school, but they’re even more important in business. If you’d like us to set up one for your business, please schedule a complimentary consultation or give us a call. 

This is general information and should not be acted upon without first determining its application to your specific situation. Please contact us, your CPA or tax adviser for additional details.