Categories
Tax

The IRS Targets Small Business Accountants Miami

Accountants Miami firms heard the IRS message loud and clear of a recent court case won by the IRS against a CPA Salary vs. Dividend Tricks the IRS Hates

Accountants Miami heard the IRS message loud and clear of a recent U.S. district court case won by the IRS against David Watson, a CPA.  At issue: a common tax-cutting maneuver by Accountants Miami available to the owners of millions of closely held Accounting services in Miami.

The case, David E. Watson P.C. v. U.S., revolved around Mr. Watson’s low pay as the sole owner of a Accountants Miami firm and shareholder of a so-called S Corporation. Such companies, often called “Sub-S” after the subchapter of the tax code governing them, is a popular choice of entity for private  Accountants Miami firm. Unlike C corporations, Sub-S have no more than 100 shareholders, and they pass profits to owners without an extra layer of tax. There are nearly 4 million Sub-Ss in the U.S. today.

Mr. Watson’s Sub-S was, in turn, one of four principals in LWBJ, a small business accountants Miami firm. According to the decision, the Accountants Miami firm made profit distributions of $203,651 and $175,470 to Mr. Watson through his Sub-S for 2002 and 2003, respectively, the years in question.

Mr. Watson, who had a graduate degree in tax and 20 years’ experience, received only $24,000 of salary for each of those years, far less than the $40,000 a year earned by recent graduates in Accountants Miami firm with no experience, according to one expert of small business accountants Miami.

The IRS cried foul, saying his pay was far too low as a CPA an Accountants Miami firm. Why object? Unlike profit distributions, all salary is subject to a 2.9% Medicare tax and some is subject to a 12.4% Social Security, or FICA, tax. (The FICA income cap, $84,900 in 2002, is now $106,800.) By reporting low pay Mr. Watson didn’t save any income taxes, but he did save nearly $20,000 in payroll taxes for the two years, the IRS said, pegging Mr. Watson’s true pay at $91,044 for each year.

Judge Robert W. Pratt agreed, ruling that the Accountants Miami owed the extra tax plus interest and penalties.

Mr. Watson plans to appeal the decision. “The IRS can disallow a tax deduction for unreasonably high compensation, but the law doesn’t give it the authority to raise pay in order to collect extra payroll taxes,” he says. Independent Accountants Miami tax expert Gustavo A Viera CPA says this will be a hard argument to win.

For Accountants Miami firm Sub-S owners, this issue isn’t going away. Last year it even turned up in legislation, when the House passed a provision that would have subjected all profits of shareholder/employees of Accountants Miami firm—such as accounting, law and consulting firms—to payroll taxes. The measure died in the Senate, but the IRS would likely welcome its return. Cases like Mr. Watson’s are expensive for the agency to litigate because each turns on individual circumstances.

Recent IRS statistics suggest why the agency might focus on Sub-S pay. Over the past decade and a half, when executive paychecks exploded, the salaries of Miami accounting CPA Sub-S owners declined as a percentage of total income, from 52% in 1995 to 39% in 2007, according to the latest data available. (The remaining income is taxable to the owners as well, but doesn’t incur payroll taxes.) During the same 12-year period, Small business accountants Miami Sub-S income doubled, while salaries increased only 26%. The average pay for a Sub-S owner was recently was $38,400, according to Accounting services in Miami firm VieraCPA.

Miami accounting VieraCPA, says pay and payroll tax issues are a frequent source of friction with clients: “Sometimes you have to take them to the woodshed and say, ‘You need to report more income as pay for personal services.”‘

What is a fair ratio of profits to pay? There isn’t one answer, Small business accountants Miami VieraCPA experts say. A company with substantial capital or assets, such as a manufacturer, often is able to justify lower pay than one selling personal services like a law or Miami accounting firm. Says Mr. Viera: “I would tell a client that for personal services, 70% would be the absolute floor and might not get the job done,” he says.

In Mr. Watson’s case, his revised compensation came to only about 40% of his total return from the company. The upshot: Pay can vary—but it can’t be too low.

Categories
Tax

Small Business Accountants Miami 11 Tax Audit Red Flags

Sometimes your Small Business Accountants are to blame for an audit.

If Small Business Accountants promises unusually high refunds without asking to see proper documentation for deductions and credits, don’t be fooled, said Gustavo Viera Small Business Accountants and managing partner at VieraCPA.

Small Business Accountants VieraCPA remind you you’re legally responsible for the information on your return no matter what a Small Business Accountants VieraCPA tells you, so make sure to look over your return before it’s sent to the IRS.

” Small Business Accountants VieraCPA can promise you the world, but then when they deduct a bunch of stuff they shouldn’t, you’re going to be the one stuck with an audit,” said Viera. Also, you’ll be required to repay any money you receive fraudulently.

This year, all Small Business Accountants VieraCPA and paid TAX Preparers are required to have a Tax Preparer Tax Identification Number (PTIN) so customers can verify that they are legitimate. Ask Small Business Accountants VieraCPA to see their PTIN before signing up for help, and be wary if your preparer doesn’t put a PTIN on your return when submitting it to the IRS, said Viera.

You make stupid mistakes

Small Business Accountants VieraCPA know whether you accidentally omitted information or you slipped up when doing subtraction, making errors on your tax return will cause the IRS to take a second look.

“The No. 1 mistake is not putting down the right Social Security numbers, and the second is not doing the right math,” said Gustavo A Viera CPA.

It may be worth hiring a Small Business Accountants VieraCPA to handle your return or walk you through the process.

“In tough economic times, people may be getting away from Small Business Accountants

Professionals,” said Viera. “And as more and more people do their taxes on their own, there will be more mistakes — both in terms of math errors and the deductions that are taken.”

Take the time to double-check everything if you’re filling out your own return, and if you decide to use tax software to file, make sure you understand how to use it, Viera advised.

You have a big mouth

You may think you’re a hot shot for pulling a fast one on the IRS. But when the friend you entrusted with your secret snitches on you in exchange for a fat check, you’re going to be in big trouble.

“Most cases start the old-fashioned way,” said Viera a Small Business Accountants who represent taxpayers whose returns were flagged by the IRS. “You blab about it to a friend, colleague, spouse or girlfriend, and one of them turns you in.”

Small Business Accountants VieraCPA warns even your closest pals may be tempted to tattle, since the IRS offers whistleblowers a reward of up to 30% of any additional tax or penalties it collects from tax cheaters.

And with the popularity of social media, it’s now much easier to publish private information publicly. So if you did something you think was questionable, don’t post it all over Facebook.

You’re extremely charitable

It’s great to be charitable, but don’t exaggerate the amount of money or items you’re donating according to Small Business Accountants VieraCPA.

When giving small items to Goodwill or thrift stores, report the estimated resale value, not the original value. And make sure you keep track of when donations are made and hold on to receipts. It also doesn’t hurt to take photos of the donated items for your records.

“Be realistic and try to be as specific as possible,” said Small Business Accountants VieraCPA. “Generally, if a donation is under $250, it’s not a big deal, but if it’s over $250 you should have supporting documentation.”

If your charitable donations are unusually high relative to your income, the IRS is likely to give your return more scrutiny as well, said Viera a Small Business Accountants.

“If you have $20,000 of income and report $10,000 in charitable contributions, that’s going to raise eyebrows,” said Small Business Accounting CPA Viera.

You didn’t file your taxes

Talk about raising red flags: If you’re required to file a return and you don’t, the IRS will hunt you down.

The agency has ways to identify people who have filed returns in the past but stopped filing, as well as people who have never filed a return. Once you’re identified as a nonfiler, the IRS will want to know how much tax you owe and what you’re hiding, said Viera, Small Business Accountants.

To avoid a confrontation with the tax man, it’s better to simply file — no matter how much you’re dreading the deed, Viera said.

“Many taxpayers get overwhelmed particularly if they owe money they can’t pay, and they stick their heads in the sand,” said Small Business Accountant VieraCPA.

But late payment penalties kick in as soon as the filing deadline passes, so if you don’t file and get caught, you could end up having to pay a lot more than your original tax bill. If you’re worried about not being able to pay your tax bill, there are installment plans available. Just ask the IRS what your best option is.

Of course, if you want to delay the pain a little longer, you can always file an extension. And if your income is below a certain level — which varies widely depending on your filing status and age — you’re not required to file a return at all. But even if you don’t have to file, make sure you’re not missing out on any deductions or credits that could actually put a little extra money in your pocket.

“Many times people build up an irrational fear over filing their taxes and in fact are due a refund,” said Small Business Accountants VieraCPA.

You own a business

The IRS tends to look extra closely at taxpayers reporting businesses on Schedule C forms because there’s more room for fudging.

“The IRS primarily targets small businesses, especially sole proprietorships, and cash industries like pizza parlors and coin-operated Laundromats with opportunities to hide income and skim profits,” said Small Business Accountants VieraCPA.

If you own a business, report every single bit of income you’ve received. If you’re still worried about being audited, you may even want to reorganize your business as a corporation or partnership (which means you’re not required to file a Schedule C) instead of a sole proprietorship, said Viera.

And if you’re flagged for an audit, the IRS will be skeptical of any business that looks like it’s actually a hobby, especially if you are deducting a loss on your return.

You’ve been audited before

Sometimes getting flagged for an audit comes down to having a bad reputation with the IRS.

If you’ve been audited in the past, you’re on the agency’s audit hit list for at least a few years, said Small Business Accountants VieraCPA. And while there’s nothing you can do to avoid being scrutinized, you should play it extremely safe to avoid getting another audit.

“If you get audited once, you have a very good chance of being audited again,” said VieraCPA. “For the following three years or so, you should be very careful about the aggressiveness or risk you take on subsequent returns, because the IRS is going to be monitoring you.”

You have a home office

Deducting a home office can always be a red flag, because many taxpayers consider any part of the house where they do work to be an office — even if they do other things, like watch TV or cook, in that same area.

To qualify for a home office deduction, you must use the office exclusively for work and it must be your primary place of business — not one of several offices. If this is the case, make sure you document expenses like housekeeping, alarm systems and other items you plan to claim — down to the share of utilities you use in just the office itself — in case the IRS decides to check it out.

And even if you think it’s legitimate, don’t go overboard. VieraCPA had a client, for example, who ran a business breeding and raising high-end cats. Since the taxpayer had cats sprawled out in every room of the house, she thought it would be okay to deduct 90% of her house as a home office. While VieraCPA agreed that the business took up a significant portion of the client’s home, he advised lowering the percentage to about 40% so that it was less likely to raise red flags.

You’re rich

Being rich isn’t always a good thing. Your chances of being audited increase dramatically the more income you report.

While the IRS audits only 1% of taxpayers overall, those odds rose to 7% for people with income between $1 million and $5 million last year. About 21% of taxpayers with income between $5 million and $10 million were audited, and 30% of people making $10 million or more were dealt audits.

If you have a lot of income to report, make sure you get a savvy preparer so at least you’ll have everything documented should the IRS come knocking.

“The rich is where the new focus is, and it’s because of one reason — it’s generating extra income for the IRS,” said Small Business Accountants VieraCPA. “And because upper income filers tend to have a lot more complicated returns, that makes it easier for the IRS to go after them.”

You have foreign assets

Foreign bank accounts have been a huge focus for the IRS in recent years.

In an effort to reel in taxpayers with illegal overseas accounts, the agency has launched initiatives that waive certain penalties for taxpayers who come clean. This year, the IRS introduced a program that gives taxpayers a reduction in penalties — and no jail time — if they fess up to any undisclosed overseas accounts for an indefinite window of time.

The agency also introduced a new form and filing requirements for reporting foreign assets this year. In addition to reporting any foreign bank accounts holding more than $10,000, you now also have to report any foreign assets — including pension funds and foreign stocks — totaling more than $50,000. Failing to report such assets will result in a $10,000 penalty, and any underpayments of tax on them will be subject to an additional penalty of 40% of the amount owed.

If the IRS has any hunch that you are not reporting an offshore account, you’re in serious trouble. “The safety people thought they may have had offshore isn’t so safe anymore,” Small Business Accountants Miami VieraCPA. “It’s time to come in from the cold.”

You guess on investments

Before this year, brokers were only required to provide the IRS with the date you sold a stock and how much money you earned from that investment.

The IRS had to rely on taxpayers to correctly list the date they bought a stock and how much they paid on their Schedule D capital gains and losses statement.

So if you put down the wrong date or purchase price — whether innocently or on purpose — you could end up paying less tax.

But now, the IRS is getting this additional data straight from brokers. If the information on your return doesn’t match, you’re in trouble. Be sure to locate your exact buy dates and prices, advised Small Business Accountants VieraCPA. Otherwise the IRS will quickly scoop you up for an audit.

 

Categories
Tax

Small Business Accountants 5 Simple Rules to Follow When Amending Your Tax Return

Small Business Accountants Miami

Your Small Business Accountants advices you that you forgot to report some income on your 1040 or just got a corrected Form 1099 or K-1 in the mail. What should you do? Small Business Accountants provide 5 tips for amending your tax returns.

1. Amended returns aren’t mandatory, according to Small Business Accountants VieraCPA. You might be surprised to find you are not obligated to file an amended return, even though Small Business Accountants tax advisers may tell you it’s a good idea—that’s because the IRS will probably send you a bill based on the revised Form 1099 or K-1 once IRS computers match that form against your Form 1040 according to Small Business Accountants VieraCPA.

Small Business Accountants VieraCPA note amended returns are not mandatory even if something happens after you file that makes it clear your original return contains mistakes. Ask if the return you filed was accurate to your best knowledge when you filed it. If it was, you are probably safe in not filing an amendment.

Conversely, if you knew your return was inaccurate when you filed it, Small Business Accountants VieraCPA warns you should amend it to make it accurate without delay. The IRS rarely brings up an originally filed return in civil audits or criminal prosecutions once the taxpayer attempts to correct it by filing an amended return. But to take advantage of this rule, you need to be proactive, and you need to make the correction before the IRS finds your error according to Small Business Accountants VieraCPA.

2. You can’t cherry-pick what you correct states Small Business Accountants VieraCPA. You don’t have to file an amended return, but if you do, you must correct everything. You can’t cherry-pick and only make corrections that get you money back and not those that increase your tax liability. If you amend, you must correct all errors, not just the ones in your favor. See Beware Amending Tax Returns by Small Business Accountants VieraCPA.

3. Some errors don’t merit amending. Math errors are not a reason to amend, since the IRS will correct math errors on your return. Likewise, Small Business Accountants VieraCPA recommend you usually shouldn’t file an amended return if you discover you omitted a Form W-2, forgot to attach schedules, or other glitches of that sort. The IRS can process your return without them or will request them if needed.

Small Business Accountants VieraCPA remind you certain parts of your original return can’t be changed by an amended return. For example, you can change your filing status on an amended return from married filing separate to joint, or from qualifying widow(er) to head of household status. However, you cannot change from married filing joint to married filing separate after the due date for the original return (usually April 15) has passed.

4. Timing counts. You must file a Form 1040X, Amended U.S. Individual Income Tax Return, within three years from the date your Small Business Accountants VieraCPA filed your original return or within two years from the date you paid the tax, whichever is later. This either/or test can give you extra time, but it is safer to amend within three years of your original return so there’s no dispute.

How soon is too soon to amend? You can file an amended tax return right on the heels of your original return if you like. However, Small Business Accountant Firm VieraCPA warns  if you are filing to claim an additional refund, you should wait until after you have received your original refund before filing Form 1040X. You may cash the first check while waiting for any additional refund.

5. Only paper will do. Amended returns are only filed on paper, so even if you filed your original return electronically, you’ll have to amend on paper. Amended returns are prepared on Form 1040X. You must use this form whether you previously filed Form 1040, 1040A or 1040EZ. Label the top of the 1040X very clearly with the tax year you are amending. See Small Business Accountants Instruction 1040X.

 

 

Categories
Tax

Small Business Accountants Miami Corporate Tax Preparation

Small Business Accountants Miami Corporate Tax Preparation

The Internal Revenue Service has been doing a better job of financial audit of Corporate Tax Preparation in recent years, according to Small Business Accountants Miami CPA Gustavo A. Viera, but potential quality concerns remain. A government report, from the Treasury Inspector General for Tax Administration, reviewed whether IRS examiners followed the appropriate procedures and guidelines when they audited the corporate tax preparation of small companies with assets of less than $10 million.

Many Small Business Accountants providing Corporate Tax Preparation considered closely held because they are owned by one shareholder or a closely knit group of shareholders, TIGTA noted. These shareholders typically exercise significant control over accounting and managing and directing the day-to-day operations of the corporation, providing them with opportunities to improperly structure transactions that reduce the amount of income taxes owed when the corporate tax preparation is performed by Miami Accounting Firms and the small corporation or its shareholders.

TIGTA found that the IRS has established many key procedures and guidelines for financial audit of such Corporate Tax Preparation processes by Miami Accounting Firms. That may have contributed to the increasing amount of recommended additional taxes generated by the financial audit.

However, when TIGTA reviewed a non-statistical sample of 51 Miami Accounting Firms Corporate Tax Preparation processes and subsequent financial audit, it found potential quality concerns in 19 of them. For example, IRS financial audit examiners did not always document the steps taken to investigate significant differences between the labor costs deducted in the corporate tax preparation and the amounts reflected on employment tax returns filed with the IRS.

Many of the quality concerns involved issues between the corporate tax preparation and other tax returns that were or should have been filed by the corporation, such as information returns and employment tax returns, or which were related to it, such as the shareholder’s individual tax return.

“Miami CPA Firms, corporations and shareholders that understate their tax liabilities can create an unfair burden on honest taxpayers and diminish the public’s respect for the tax system,” said TIGTA Inspector General J. Russell George in a statement.

TIGTA recommended that the IRS provide additional guidance to first-line managers to improve the feedback provided to field financial audit examiners on using the IRS’s automated information systems to enhance the quality of their required filing checks for financial audit of small corporations, their small business Accountants and their corporate tax preparation procedures.

IRS officials agreed with the recommendation and plan to issue a memorandum to first-line managers concerning the use of automated information systems to enhance required filing checks and address feedback provided to field financial audit examiners.

“We believe ensuring compliance with the filing of all related returns is an important audit technique to enhance voluntary compliance and concur with your recommendation,” wrote Faris R. Fink, commissioner of the IRS’s Small Business/Self-Employed Division.

 

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Business Trends

Small Business Accountants Reach Stagnation Point

Hiring and spending levels at Small Business Accountants remained depressed in 2012.

As did plans to do more in the near future, according to Small Business Accountants firms. The American Institute of Certified Public Accountants Index of Miami Small Business Accountants Optimism for July was 94.4, a historically low figure and consistent with the sub-par performance of GDP and employment growth. Individual indicators were mixed, with expected revenue in a three-month decline. However, some employment components improved and profit trends remained relatively stable after its sharp gain in June.

“In the last year, Small Business Accountants optimism has limped along, and today the sector is no better off than it was just over a year ago. The lack of progress is discouraging, producing no signs that economic activity will pick up this year at all. The calculus of spending decisions requires an estimate of future revenues, tax rates, interest rates and credit availability, labor costs, health-care costs, regulatory compliance costs, all of which are very uncertain. Most of this uncertainty is the result of what is happening—and not happening—in Washington. Investments in jobs or plant and equipment are not the priority while people are still bracing for the worst.

Expectations for increasing future revenues continued to be weak, far below readings recorded in any other recovery period since 1973. Sixty percent of those Small Business Accountants surveyed said now is a bad time to expand their businesses; one in four of those owners cited political uncertainty as the main reason, second only to concerns about a weak economy.

However, prospective labor market indicators posted gains that built upon those reached in June. There was gradual improvement in reports of collecting and paying bills on time, and trade credit availability improved. Compensation continued to show some strength, and price hikes moderated.

The future remains uncertain for Small Business Accountants owners; many tentative to expand their firms or hire more workers in the coming months. Only 7 percent (seasonally adjusted) characterized the current period as a good time to expand facilities—this reading is unchanged from the previous month. The net percent of owners expecting better business conditions in six months was a negative two percent (a 3 point improvement). However, more owners still expect the economy to deteriorate further than those who anticipate improvement. A net 2 percent of all owners expect improved real sales volumes, down 4 points, the third monthly decline in a row.

Twenty Percent of Small Business Accountants reported that “poor revenues”  in 2012.

Overall, the outlook is not conducive for new spending or hiring.

Based on data about capital expenditures, Small Business Accountants spending appears to be more for maintenance than for expansion. The frequency of reported capital outlays over the past six months rose 1 point to 55 percent, 11 points above the historic low last reached in August 2010, but still below readings from the first half of 2008. For historical context, an average of 60 percent of firm owners reported making capital outlays on 2007. Of those making expenditures in May, 37 percent reported spending on new equipment (down 2 points), 24 percent acquired vehicles (up 2 points), and 14 percent improved or expanded facilities (up 1 point). Seven percent acquired new buildings or land for expansion (up 1 point) and 13 percent spent money for new fixtures and furniture (unchanged).  Overall, the sector exhibited small and incremental improvements in spending. The percent of owners planning capital outlays in the next three to six months dropped 1 point to 24 percent.

The change in employment per firm seasonally adjusted was a wash – coming in at a net “0”. Seasonally adjusted, 10 percent of the owners added an average of 2.6 workers per firm over the past few months, and 15 percent reduced employment an average of 2.1. The remaining 75 percent of owners made no net change in employment. Fifty-one (51) percent of the owners hired or tried to hire in the last three months and 37 percent (73 percent of those trying to hire or hiring) reported few or no qualified applicants for positions. The figures suggest that job creation was very weak, and finding workers for open positions is proving a challenge for some owners. The percent of owners reporting hard to fill job openings rose 3 points to 20 percent, the highest reading since June 2008, indicating that labor markets are tightening—either because labor demand is quietly rising or potential workers continue to leave the workforce. Seasonally adjusted, the net percent of owners planning to create new jobs rose 1 point to six percent, confirming the 5 point jump recorded in April. Overall, there was little improvement in the numbers to suggest that job creation will enjoy any precipitous increase in the near future.

Categories
Business Trends

Business Accountants Expect Revenue to Improve

Business Accountants are optimistic about their business revenue projections

According to a new survey, with 45 percent of Business Accountants expecting revenue growth are optimistic about their business revenue projections, versus 17 percent expecting revenue declines.

The survey, by the FICPA, a Florida Institute for CPA, found that 44 percent of Small Business Accountants believe the U.S. economy will improve in 2012, compared to 46 percent in 2011.

While 58 percent of Business Accountants decision-makers report business-related worries keep them up at night, the Employers Business Accountants Opinion Poll found the 2012 figure to be significantly improved compared to results from a similar survey a year ago. This year, 40 percent of the 500 Small Business Accountants who were polled responded that they don’t worry about their businesses, versus 30 percent who didn’t experience sleep-depriving worries in 2011.

The latest poll also reveals that today’s Small Business Accountants worries are more focused on issues related to growing their businesses (20 percent) rather than variables that are more out of their control like the economy.

The survey found that 23 percent of Business Accountants owners surveyed said they are currently at pre-recession revenue levels. Twenty-one percent said they are currently hiring versus just 15 percent a year ago, and 21 percent of the survey respondents said they plan to hire additional part-time or seasonal workers for the summer

The restaurant industry segment reported the strongest optimism and expectation for growth in the latest Employers Small Business Opinion Poll, with 61 percent expecting the U.S. economy to improve in 2012 and 61 percent saying they expect their businesses to grow over 2011 levels. The restaurant industry also leads the way in job creation plans among small businesses, with 39 percent saying they are currently hiring and 42 percent indicating they plan to hire additional workers for the summer season.

Other industries feeling more bullish about their ability to grow revenue in 2012 include the communication industry (53 percent), manufacturing (52 percent) and financial services (51 percent).

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Business Trends

Small Businesses Accountants Still Have Trouble Accessing Financing

Small Businesses Accountants Still Have Trouble Accessing Financing

Cash flow issues continue to plague a significant number of Small Businesses Accountants in the U.S., with 43 percent of Small Businesses Accountants saying they needed funds at one point in the last four years and were unable to find any willing sources.

A new survey released Wednesday by the National Small Businesses Accountants Association revealed ongoing problems with accessing financing at small businesses accountants Miami.

Among the Small Businesses Accountants firm owners who reported some change to their credit, 60 percent said the reason given by the bank was an internal risk assessment. Many survey respondents expressed a relatively negative impression lending institutions, with 15 percent indicating they were given no explanation for changes to their credit.

“Not only have Small Businesses Accountants been unable to find new credit over the last four years, nearly a third had their existing credit slashed and one in ten had their loans called in early,” said NSBA president and CEO Todd McCracken in a statement. “What’s worse, 19 percent of those whose loans were called in early were given less than 15 days to pay the full balance of their loans.”

Small Businesses Accountants were asked to rate various lending institutions. Only small community banks and credit unions received an overall positive rating by a majority of the respondents. More than one quarter of small business accountants respondents said they changed banking institutions in the last four years, with feelings of mistreatment cited as the most common cause.

Failure to secure financing has caused 32 percent to reduce their number of employees, 20 percent to reduce employee benefits and 17 percent were unable to meet existing demand.

In addition to traditional financing issues, respondents reported a notable increase in client payment times, and 55 percent of small subcontractors reported late payments from a prime contractor. On a positive note, 19 percent indicated they are more likely to seek investors as a result of the crowdfunding exception included in the recently passed JOBS Act.

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Business Trends

Small Business Accountants Miami Business Credit Conditions Improve

Small Business Accountants Miami Notice Credit Conditions Improve

Small Business Accountants Miami credit quality improved slightly in the second quarter amid slower hiring and new worries about the European fiscal crisis, according to a new report from Florida Institute of Certified Public Accountants.

Small Business Accountants Miami financial strength continues to vary considerably across the county, however. In areas where hiring has picked up and earnings are growing, consumer spending has provided a much welcome boost to Small Business Accountants Miami. Where spending is still weak, Small Business Accountants Miami credit quality remains poor.

The Florida Institute of Certified Public Accountants Small Business Accountants Miami Credit Index edged up 0.9 point in the second quarter of 2012, to 104.1 from 103.2. This is the index’s third consecutive quarterly improvement, after it declined for much of 2011. The report also indicated that credit quality will be slow to improve in coming months, and threats to consumer confidence and spending have become more prominent. Business confidence is in line with an economy growing below potential, and this could weigh on hiring through the rest of the year, postponing the emergence of a strong, consumer-led recovery.

Small Business Accountants Miami continue to get their financial houses in order, but the progress is slow and they remain cautious in expanding their operations. Until Certified Public Accountants step up more aggressively, the economy will struggle to grow.

The trend in business payment behavior continues to be a concern, according to the report. On average, U.S. Small Business Accountants Miami paid their bills 7.4 days beyond contracted terms during the second quarter, compared with fewer than seven days this time last year. The average grew regardless of firm size, but large firms employing more than 100 people showed the greatest increase, along with firms with fewer than 19 workers.

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Business Trends

Business Accountants Keeping In Front Of Clients and Prospects

Business Accountants Keeping In Front Of Clients

Gustavo A. Viera CPA, a Business Accountants and partner in a Miami Accounting Service says that hosting interesting events is the main way he keeps out in front of clients and prospects.

There’s nothing better than getting out of the office to, say, play a game of tennis with a client who has a passion for that, or to spend time meeting their friends and family at a culinary institute or baseball game. Our clients know we are looking out for their best interests on the financial front but what sets us apart is knowing how much we really care about them as people, not just a client account.

Viera, who’s been a Small Business Accountants, said they had a great response to a “ladies only” event they held at a local art facility. We called it ‘Wine and Design’. Everyone was given a canvas on an easel and, after a short painting lesson, invited to paint their own masterpiece. They each took home their painting and some great memories.”

You can be sure that when they hang that painting in their home or vacation cottage that visitors will ask about it and the client or guest they brought will remember the event and that their Business Accountants hosted.

BUSINESS ACCOUNTANTS THREE PRIMARY FUNNELS

There are really only three primary marketing methods that work for Business Accountants:

— Event Marketing

— Client and COI Referrals

— Public Relations

Filling each of the three funnels is a sure way to ensure you have enough qualified client inquiries come down the spout and, ultimately, become right-fit clients.

This week, we’ll talk about Event Marketing. In future weeks, we’ll talk about referrals and public relations.

THE FIRST FUNNEL TO FILL: EVENTS

Events can be a great way to help enhance relationships with current clients, position yourself in front of qualified prospects, and build important mutually beneficial relationships with Centers of Influence (COIs). In fact, I think it’s the most important funnel for you to fill. Filling your Events Funnel will inevitably lead to a spillover into your Referral Funnel and Public Relations Funnel. But, while it is true that nothing will ever replace the warmth of a handshake or the ability to build rapport in person, yesterday’s event marketing strategies may not work today.

There are three primary types of marketing events that work for Business Accountants:

— Affinity event

— Client appreciation event

— Public forum

At the end of this article, you will be invited to envision three different events and to pencil in the initial framework for a successful event. Take notes as you read from here on down – something I say may spark an idea for you and you’ll want to capture your insights as they occur to you.

BUSINESS ACCOUNTANTS THINK BEYOND THE NORM

Times have changed and people are tired of the same old thing. They want information from an authoritative source, presented in a fun and dynamic way – on their terms (e.g., live in person, live in a virtual setting or recorded and available 24/7 online).

Today’s consumers are not the “Pollyanna” type.  They’re more skeptical and better informed than ever before.  They don’t want to be told what to do.  They want a chance to interact and shape the discussion, to check you out ahead of time and to challenge the status quo.

The Internet has changed the playing field. Most people can get answers to financial and business accounting questions with a few clicks of their mouse. They can get insights and advice from colleagues, peers and other professionals through interactive social media sites such as LinkedIn, Eon, Twitter, Facebook and more.  With the advent of Web 2.0, people have instant access to professionally produced, dynamic multimedia presentations on websites, blogs, Scribd, SlideShare, Vipe, Vimeo and YouTube.

TOUCHING THE EMOTIONS

The days of inviting people to watch a simple lecture on the basics of business accounting are long gone.  Today’s clients want to be a part of the experience, and attention spans are not what they once were.

In fact, my speaking coach continues to drum beat this message for even traditional presentations that are content-rich: “People want information. But they also want to be entertained. Just like a band creates ‘sets’ of music that bring the audience up and down, happy and sad, reflective and engaged, so too do you want to craft your presentations. Make them a mix of fun and serious, direct delivery, interactivity, bouncy and staid, and you will ‘have them with you’ – and liking you – throughout the entire presentation.

We live in an age of rapid-burst transmission and instant information. However, people still value the personal touch; if you create something unique and compelling, people will not only take notice and participate themselves. they’ll tell others about you and your unique, compelling approach.

ANSWERING THE ESSENTIAL QUESTIONS

So, how do you make your events original and distinctive, but still keep them manageable, scalable and repeatable? It’s always good to start with some basic questions:

Why, Who, What, Where, When and How.

In my next installment, we’ll drill down into these essential questions and you’ll be invited to envision three perfect events to keep your name top of mind with right-fit prospects and current clients.

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Accounting

A Simple Business Plan for Small Business Accountants Miami

A Simple Business Plan for Small Business Accountants Miami

It’s doubtful that no two words in a Small Business Accountants Miami vocabulary are procrastinated over more than these two: “Business Planning”.

This simple phrase can conjure up visions of being hunkered down over a desk trying to justify, forecast, number-crunch and ultimately wrestle with the current state of your Accountants Miami Firm compared with where you want it to be five or ten years down the line.

But the business planning process doesn’t have to start and end this way.

If you really want to succeed at lets say a Accountants Miami Firm, as in life, planning should be part of everything you do, and, it never stops.

Just think about the simple act of hitting the road to attend a business meeting across state. You may not be conscious of this fact, but you have already undertaken a series of planning steps and adopted precautionary measures to ensure you arrive at your destination safely and on time.

Over time, this might mean you have invested in a number of available GPS navigation tools, roadside support options, and insurance policies, that will help you plan for each car journey and prepare for the obstacles that you may encounter on the way.

For many Accountants Miami, start-ups and other entrepreneurs – the business planning process isn’t actually a whole lot different. And, while it’s unlikely that you would start a car journey with an encyclopedic-sized travel plan at your side, neither is it absolutely necessary to have a 100 page business plan to steer your Small Business Accounting Business towards its long term goals.

Keep it Simple Stupid (KISS)

Whether you are a Accountants Miami, a home-based business, or have your sights set on Main Street, you want to ensure you scale your plan to your business needs. This includes understanding your market, having a clear view of your capital needs, your budget and cash flow, and, just as you would when you get behind the wheel, list some basic assumptions about where your Accountants Miami is now and where you want it to go, and of course, what is it going to take to get you there.

For a Accountants Miami or home-based business, this might be as simple as having a goal to expand you client base from two to six by the end of the year, and having a plan to do so. The plan might include networking, building up a referral base, creating a professional web site and starting a blog.  And as your business grows, your plans and benchmarks will grow accordingly.

Break Up Your Plan into Mini-Plans

While a strategic business plan is essential, you also need to break up the planning process across the different functions of your business. You need “mini plans” for all areas of you business, that you visit monthly, if not weekly.