Professional Accounting Blog

    Accounting For Your Prosperity

    Improving Your Company’s Month End Close

    Posted by Dan Prendergast on Oct 18, 2016 8:00:00 AM

    Topics: Small Business

    Management theory tells us that you cannot set improvement goals without first having a means to measure or quantify if your goals are being reached. Consistent with the theme of quantifying your results is the secondary goal of having the information available on a timely basis. Data that isn’t timely can quickly become useless. There may be no better example of this theory than how it relates to the production of monthly financial statements. Having the statements available as close as possible to the end of the measurement period is critical when management is attempting to assess what improvements can or should be made. 

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    Do I Need a Board of Directors?

    Posted by John Nicklas on May 17, 2016 10:28:22 AM

    Topics: Small Business

    Business owners are great people. Without them, no one would have a place to work (unless you work for the government). So we should all say “Thank You”!  Most business owners are risk takers, very decisive and very motivated. They have the vision and the energy to execute that vision. The future of the business and its employees rests on the shoulders of the business owner. But who looks out for the best interest of business owner and the businesses they created? Besides your outside trusted advisors (CPAs, attorneys and bankers), all business owners should consider a board of directors.

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    Considerations to Make When Preparing Your Family Business for Transition

    Posted by Lloyd Bell on Apr 27, 2016 12:34:20 PM

    Topics: Family Business & Succession, Small Business

    PreparingFamilyBusinessforTransition.jpgWhen it comes to family businesses, owners are generally more focused on building a legacy for their successors rather than spending the time necessary to plan for the transition. Hours of work are spent addressing the immediate needs of the business while planning for the transition is set aside for another time. This delay can create problems down the line when an owner decides that it is time for him or her to transition from the business. Paying close attention to the following considerations will help you ensure that your family business is ready for that transition phase and new leadership.

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    3 Key Factors of Business Ventures

    Posted by John Nicklas on Oct 27, 2015 3:07:59 PM

    Topics: Small Business, Accounting & Auditing

    Over 20 years ago, I graduated from college (Miami University in Oxford, Ohio). I think that I was well educated and well prepared for the working world. During senior year I took a class about buying, selling and starting your own business. The class was not taught by a professor. It was taught by a retired businessman who started and sold many business in his career.  Some of these ventures were successful and some were failures. We studied all of his business ventures and many other case studies (no textbooks were used). He retired a very wealthy man and decided to share his knowledge at Miami. Unfortunately, I do not remember the instructor’s name. 

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    Can't Afford to Sell

    Posted by Lloyd Bell on Oct 13, 2015 9:00:00 AM

    Topics: Small Business, Corporate Finance

    A common issue that business owners face when contemplating the sale of their business is whether they can maintain the same standard of living post-sale without dipping into the proceeds. Consider an owner of a company who draws a salary of $250,000 per year. We’ll further assume that this company has no debt and could be sold for $10 million after taxes.

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    Family Business Succession Planning: Handling the Next Generation

    Posted by Lloyd Bell on Jun 11, 2015 11:30:00 AM

    Topics: Family Business & Succession, Small Business

    When I was fairly young (at which time my kids assume dinosaurs roamed the earth), I would play chess with my grandfather when we visited his house. To be honest, I really didn't remember these games as he passed away when I was in high school. Years later, my grandmother gave me a chess set that my grandfather had commissioned from a woodcarver in Italy. She told me that my grandfather wanted me to have it since he fondly remembered our games. My brother, who never played with my grandfather, got squat.

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    How Depreciation Rules Impact Deductions

    Posted by Peter DeMarco on May 29, 2015 10:29:00 AM

    Topics: Tax Planning & Strategies, Small Business

    Small Business Tax for Entrepreneurs

    When looking at tax for small businesses, let's look at an example many entrepreneurs face. You may have one or a few cars related to your company that are subjected to tax laws in regards to claiming expenses for owning the vehicles. Depreciation rules are tricky and often disregarded because segments of the rules are not well outlined.

    Entrepreneurs are permitted by the U.S. Tax code to deduct from their taxable income the full price tag of qualifying equipment in any given year; limits are also set on depreciation for public transport vehicles. At inception, vehicle devaluation limits were known as “luxury automobiles.”

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    Measuring Management Effectiveness with Cash Conversion Cycle

    Posted by Dan Prendergast on Apr 23, 2015 2:59:00 PM

    Topics: Small Business

    There are many parameters that a company’s management is assessed and evaluated on. Some of the parameters are based on financial statement ratios, customer satisfaction, and employee satisfaction. One of the financial statement ratios that can be used to assess the overall operating health of the company is a cash conversion cycle. A cash conversion cycle could provide management with useful information about where improvements could be needed.  It’s also a very easy ratio to calculate.  

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    10 Differences Between QuickBooks Desktop and QuickBooks Online

    Posted by Brent Thompson on Mar 10, 2015 8:45:00 AM

    Topics: Small Business

    Have you heard about the online version of QuickBooks? If you haven’t yet, you will soon. It’s gaining notice in the world of accounting software. Since it’s an online product, technically it’s a service not software. There are several other ways online differs (some good, some bad) from the desktop version:

    1. Flexibility: The ability to access your data file from any computer with an internet connection is certainly convenient.
    2. Reduced administration: Updating installation and file backups become a thing of the past. Intuit automatically updates the website and your data is stored in the cloud.
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    When are 1099’s Required?

    Posted by Brent Thompson on Nov 13, 2014 9:00:00 AM

    Topics: Small Business

    The question seems fairly straightforward. So then why does the IRS have 8 pages of instructions regarding the 1099-MISC form? There are multiple types of 1099 forms, but the following information applies to the 1099-MISC only. Let’s see if we can’t make this a bit simpler.

    Who?

    If you are making payments in the course of your trade or business, then filing the form 1099-MISC is required. Nonprofit organizations, trusts of qualified pensions or profit sharing plans of employers, payments by government agencies, and a few others are also considered to be engaged in a trade or business. 

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