Eight Things You Must Bring

to Your CPA at Tax Time

By:  Robert A. Loeser, CPA

1)   Social Security cards for new additions to your family.

2)   Invoices for major purchases (cars and boats) reflecting sales tax that is deductible in 2009.

3)   Closing documents on home sales or purchases for deductible interim mortgage interest and pro-rated property taxes.

4)   Closing statements on home purchases to qualify for the $8,000 first time house buyer credit in 2009.

5)   Insurance claims and out of pocket expenditures in 2009 related to Hurricane Ike.

6)   Valuation of all IRA accounts at 12-31-09 to determine whether a Roth rollover in 2010 provides you a positive tax savings.

7)   Did you refinance your mortgage in 2009?  If so, please bring in the closing documents.

8)   Did you sell any stocks in your portfolio in 2009?  If so, please provide us with a year-end summary.

Tax Season

Making A List and Checking It Twice

By Robert A. Loeser, CPA

If you all haven’t noticed, there are only 14 days left in year 2009. You do have the ability to influence your 2009 tax situation by doing the following:

• Pay all Property Taxes before December 31, 2009.
• Pay January 01, 2010 Mortgage payment before December 31, 2009.
• Make all your charitable contributions before December 31, 2009.
• Take year-end bonus in 2009.
• Capital Gains taken in December 2009.
• Capital Losses taken in December 2009.
• Purchase of Automobile in December 2009 to deduct Sales Tax paid.

Robert A. Loeser is a CPA in Houston, Texas and can be reached at (713) 953-1272 or at TaxManBob@pdq.net.

As we maneuver through these difficult economic times, you shouldn’t forget how you got your business to where it is today.  Continue to use what “brought you to this dance”.  Referrals are always there for the asking.

1. From Current Client Base

            Ask current clients that you provide excellent service to for referrals.  You can provide the same quality service and at the same time keep operating costs down, like your computer software, by lowering the pass-on cost to the client.

2. From Current Business Professionals

            You send business referrals to an attorney, insurance agents and consultants that you work with on a routine basis.  It is time to turn the tables!  Pick up the telephone and ask these receivers to now be givers.  Ask them why they hadn’t previously reciprocated your efforts.

3. Network Your Business

            Get your name and your business (and its strengths) out to the general public by joining a breakfast club (i.e. BNI), a business organization (i.e. Chamber of Commerce, The Entrepreneurship Institute) or associate yourself with a local radio program (i.e.  The Price of Business in Houston, TX).

4. Cold Calls to Existing Clients

            Clients are impressed when you call them once or twice a year just to say hello, how is the family and how is your business in the trying economy?  Ask them if they need anything from you.  This small gesture goes a long way to gaining the client trust you desire.  Trust me, they will remember.

5. Return Your Telephone Calls

            Keep your current clients happy (for referrals) by returning their phone calls on a timely basis (2-4 hrs.).  What is important to them when they call may not be important to them tomorrow.  It shows your clients that you care about their business NOW.

6. Keep Business Promises

            When you promise your client that their job will be completed by Friday at 3:00 PM, make sure it is in their hands by 2:00 PM on Friday.  They don’t want to hear that the “dog ate my homework” and the job won’t be ready until Monday afternoon.  This also goes a long way in establishing good client relationships and ultimately, a good referral.

When you finally get that desired referral from one of the above sources, make a good and everlasting first impression.  Be prompt and prepared for the meeting.  You want this contact to become a good referral base for you in the future.

The first in a series “Ten Mistakes New Businesses Make”

You wake up in the middle of the night and can’t get back to sleep. You wonder why after 10 years you are still working for your current employer down that dead end path. You ask yourself “why can’t I do this on my own?” “It can’t be that difficult, can it?” We have all been there and done that!

Well, if it was so simple and easy, everyone would be doing it. However, in our real world, 9 out of 10 new businesses fail in the first three years of existence. You ask yourself why this happens so often? The answer is because of the mistakes that are made prior to launching your business.

After you make this life changing decision as to what you want to be when you grow up, you need to visualize this plan in a detailed written business plan. This plan includes: the type of business, when and where you will open shop, what market do you want to go after, how much capital do you need to open doors, who can help you with a new bank, your new lease, hiring your first assistant? Lastly, but probably your most important decision is to find a reliable Attorney and a knowledgeable Certified Public Accountant to help you encompass all the necessary steps in developing your business plan and launching it.

In finding that reliable attorney (not a cheap one), he or she must have business experience, a small amount of knowledge of your business or industry and can help you grow your business. He or she can setup your new corporate or partnership entity, assist you in opening bank accounts, apply for business lines of credit and negotiate lease terms. The attorney is a cornerstone to your business success.

The second major contributor and cornerstone to your business is your Certified Public Accountant. Even before you contact your attorney, you should sit down with your accountant and prepare a budget and cash flow statement for the first 12-15 months of operations along with a business plan of how to get there. These discussions should include capital to be raised along with bank contacts to setup credit lines. Your accountant will evaluate what type of entity (partnership, corporation, LLC, LLP and Sub S Corp) suits your business and tax planning needs now and in the future. Tax planning should include tax savings tips to assist in the growth of your business.

As you can see, your attorney an accountant should take on key roles in the formation of your new business venture and if done correctly, should be noticed later for its growth and success.