Tax Laws Slowing Growth of Small Business

In a recent testimony before Congress, Troy Lewis, CPA, CGMA, and chair of the American Institute of CPAs’ (AICPA) Tax Executive Committee, claimed that that compliance with federal tax laws can act as a road block in the growth of small businesses, according to Seth Fineberg, writing in Accounting Web.

 “It is imperative that small businesses and their tax return preparers have the ability to communicate with the IRS when preparing their taxes and addressing compliance issues,” Lewis told committee members. “However, there has been increasingly limited access to the agency. Taxpayer service must remain a high priority in order for small businesses to receive the assistance they need on tax issues.”

Click here to read the complete article.

Inverting Companies Regain Contract Eligibility

In an article published in Bloomberg News, Zachary R. Mider reports that the Obama administration quietly handed a victory to U.S. companies that avoid taxes by claiming a foreign address, suggesting that virtually all of them are still eligible for government contracts.

The Department of Homeland Security last year endorsed a legal memorandum that argued in part that a 2002 law banning such companies from federal contracts was invalid, according to a copy of the memo obtained by Bloomberg News. Although President Barack Obama later began publicly criticizing the tax maneuvers known as inversions, there’s no sign that he has reversed the department’s decision.

The March 2013 memo was submitted to Homeland Security by one of the country’s largest inverted companies, the manufacturer Ingersoll-Rand Plc. The company argued in part that U.S. trade agreements with foreign governments invalidated the law that would prohibit it from winning federal contracts.

You can ask a real person what this means by calling Neikirk, Mahoney & Smith CPAs at 502-896-2999.

To read the full article, click here.

State-based marketplaces lag behind federal exchange

Brian M. Kalish, writing in the Employment Benefit Advisor, reports that state-based health insurance marketplaces aren't performing up to the Obama Administration's expectations.

As they struggle to become financially stable, state-based marketplaces are lagging behind the federally-facilitated marketplace and are likely to continue to do so in the near future.

Despite improvement efforts, it is safe to “say that the experience for issuers on the public exchange has been challenging,” said Scott Rathke, vice president of government relations at Tampa, Fla.-based Health Plan Services, a third-party administrator which works in the FFM and eight state-based marketplaces.

“Pretty much from the get-go, while the marketplaces have been improving, you still have lots of nuances and problems.”

If you have questions about your company's employee benefit structure, contact Neikirk, Mahoney & Smith at 502-896-2999.

Then read the rest of the article here!

Supreme Court issues pro Hobby Lobby ruling

Fox News -  The Supreme Court ruled Monday that certain "closely held" for-profit businesses can cite religious objections in order to opt out of a requirement in ObamaCare to provide free contraceptive coverage for their employees.

The 5-4 decision, in favor of arts-and-crafts chain Hobby Lobby and one other company, marks the first time the court has ruled that for-profit businesses can cite religious views under federal law. It also is a blow to a provision of the Affordable Care Act which President Obama's supporters touted heavily during the 2012 presidential campaign.

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In celebration of Small Business Week

Smallbiztrends.com has a running list of national events slated this week and I thought I'd share them today. If you run a small business and you're looking for ways to increase your bottom line, contact Neikirk, Mahoney & Smith PLLC, a Louisville based accounting firm serving American with small business accounting, tax preparation and consulting. Our telephone number is 502-896-2999.

National Small Business Week in the United States runs May 12 – 16, 2014.  This year, like past years, is expected to kick off with a proclamation by the President affirming the country’s commitment to small businesses.

Each year the U.S. Small Business Administration holds a series of national events taking place in Washington and elsewhere, covering important issues such as financing, growth strategies and innovation.

But it’s not just the federal government getting in on the act. States, cities and companies also hold activities, educational events like webinars, and perform special activities in honor of Small Business Week.

So to help you all participate in some way — whether sitting at your computer or out in your local community — we’ve started collecting a list of activities, events, announcements and other information you need to know about Small Business Week.

THIS IS A RUNNING LIST OF SMALL BUSINESS WEEK ACTIVITIES – WE WILL BE ADDING TO IT DAILY!

Monday, May 12

A kick off at Twitter HQ. A kick off event for National Small Business Week will be held at Twitter Headquarters in San Francisco from 7:30 am to 12:00 p.m. Pacific Daylight Time. The event is currently sold out, but you can get yourself on the waiting list here.

Saying Thank You to Guilford’s Small Businesses. Running May 12th through May 18th is an event organization of over 25 non profits to use National Small Business Week as an opportunity to say thank you to all the small businesses in town who support their organizations by “asking all their supporters, board members, staff, and friends to make it a point to do business locally during National Small Business week.”

Tuesday, May 13

Making Kansas City an International Hub. National Small Business Week continues with a series of seminars in Kansas City with discussion on making the city an international trade hub and more. Events will be 8 a.m. to 4 p.m. Central Standard Time at Burns and McDonnell.

Small business discount day. The Greater Philadelphia Chamber of Commerce will sponsor a Discount Day with special deals and offers from participating members of the local organization.

Integrated Marketing TNT Webinar - Join Rajatish Mukherjee, Sr. Vice President of GoDaddy and Raj Nijje, Sr. Director of Product Management of GoDaddy – along with host Brent Leary. They will cover how to enhance your small business’s online presence and get found online.  From 7 to 8 pm Eastern.

Twitter chat on business signage and marketing. Small Business Trends along with sponsor FedEx is hosting an educational chat on May 13, 2014 at 8p.m. EST on Twitter.com, under the hashtag #SMBSignage. Join in and share your marketing tips about creating signs and other marketing.

Wednesday, May 14

Small Biz Success in the Mobile World. Conduit Mobile will host a special summit from 8 a.m.to 1 p.m. EST at the IAC Building in New York City. Discussions will revolve around the small business opportunities created by mobile.

100% Royalty Day.  iStock will give 100% of the sales on May 14 from cash and credit downloads of millions of files to the artists (many of them entrepreneurs) who create the content.  iStock will also pay double royalties to artists on subscription-based downloads of exclusive content.

Webinar on top U.S. cities for small business growth . As part of National Small Business Week, Biz2Credit and Small Business Trends will host a free webinar at 3:00 p.m. EDT which will delve into the best areas of the country to start and expand a company.

Wix and Infusionsoft – Small Business Breakfast.  Wix and Infusionsoft will have their monthly Small Business Breakfast during Small Business Week. Hosted by Ramon Ray, this month’s event brings together small business owners to hear from Emily Miethner, owner of FindSpark and a master of online and offline networking.

PayPal – Engage New York. PayPal and the SBA bring together small business retailers to learn best practices in selling online, online marketing, technology, finance and more. Hosted by small business pundit Gene Marks and Infusionsoft’s Ramon Ray,  this event will be informative, high energy and fun.

Small Business Success Stories.  Four small business owners will share their stories of success. May 14, 6:30 p.m. at the Burton D. Morgan Center for Entrepreneurship Research at the Hudson Library, Hudson, Ohio.

Thursday, May 15

Constant Contact chief speaks. Constant Contact CEO Gail Goodman is scheduled to give a keynote address at 10 a.m. EST in Boston at the Microsoft New England R&D Center. Her topic will be how to forge enduring customer connections.

Webinar on small business follow through. The Greater Philadelphia Chamber of Commerce will sponsor a webinar on small business follow-through with Mark Goulston, M.D, of Heartfelt Leadership from 10 to 11 a.m. EST.

Veterans in entrepreneurship. A special panel on veterans and entrepreneurship will be the highlight of an afternoon of activities in Washington D.C. at the U.S. Chamber of Commerce building from 3 to 8 p.m. EST.

St. Johns County Small Business Expo. Sponsored by Vystar Credit Union, Constant Contact and Microsoft, St. Augustine, Florida’s Business Solutions Unlimited, LLC, will host a free Small Business Expo on May 15, 2014, from 10:00 a.m. to 5:00 p.m., at the St. Johns River State College. Classes on topics ranging from marketing to accounting will be conducted throughout day.

Friday, May 16

Author gives Philly keynote. The Greater Philadelphia Chamber of Commerce will sponsor a keynote address from adjunct professor at Temple University’s Fox School of Business Chris Rabb, author of the book “Invisible Capital: How Unseen Forces Shape Entrepreneurial Opportunity.”  The event will be at Liberty Ball Room at the Independent Visitor Center 8:30 a.m. to 10:00 a.m Eastern Standard Time.

Legal Zoom Small Biz Twitter Chat. Join senior USA Today small business columnist, speaker and best selling author Steve Strauss and LegalZoom for the next in a monthly series of Twitter discussions focused on start-ups, small businesses and entrepreneurship. This months Twitter chat guest, during Small Business Week, is Infusionsoft’s Ramon Ray sharing insights.

Business (E)ssentials Bootcamp Atlanta. Join dozens of small business owners Friday May 16 and Saturday, May 17, 2014; 9:00 a.m. to 5:30 p.m. for two power-packed days where they will develop their own customized Internet marketing and communications plans. Participants will gain essential SEO, CRM and Internet marketing skills.

All Week Long

Google Business Community.  Members who join The google Business Community between May 12 – 16 will get a promotional code from Google for $20 toward Helpouts in areas like online advertising, branding and web design.

Add Your Announcements and Events!

Everyone is welcome to share their own Small Business Week activities, events and announcements.  Email your event or announcement to our tips box:  sbtips@gmail.com.  Or just leave a comment below.  We will add it.

Also, see the Small Business Events Calendar for more.

Time to Re-evaluate Your Accounting Resources

Now that tax season is over for most of us, now would be a good time to re-evaluate your resources to make sure you're getting the most bang for your accounting buck.

How do you feel about the way your 2013 taxes were done? Did your accounting firm keep you informed of changes in the tax code that could impact your business?

Did your accounting firm take the time to really understand how your business operates? Did they provide you with suggestions and ideas that would positively impact your bottom line? Were they proactive or reactive? And at the end of the day, do you feel like you were getting what you expected at the cost your expected?

If the answer to any of the questions above is anything but a resounding "yes", contact Neikirk, Mahoney & Smith today. We'll spend some time together, discussing and learning what really matters to you, not to us.

In a world of fast talkers and false guarantees, Neikirk, Mahoney & Smith stands out from the white noise. That's because we really do care about you and your business.

Here's a great article for your reference from Entepreneur.com. And after you've read it, give us a call today.

HOW TO HIRE AN ACCOUNTANT

Every dollar counts for business owners, so if you don't know where you stand on a monthly basis, you may not be around at the end of the year. And while using do-it-yourself accounting software can help monitor costs, the benefits of hiring good accountants extend far beyond crunching numbers. Potentially, they can be your company's financial partner for life, with intimate knowledge of not only how you're going to finance your next forklift, for instance, but also how you're going to finance your daughter's college education.

Before you hire one though, make sure you understand the four basic areas of expertise in a general accounting practice:

1. Business advisory services. Since an accountant should be knowledgeable about your business environment, your tax situation and your financial statements, it makes sense to ask them to pull all the pieces together and help you come up with a business plan and personal financial plan. Accountants can offer advice on everything from insurance (do you really need business interruption insurance or is it cheaper to lease a second site?) to expansion (how will additional capacity affect operating costs?). Accountants can bring a new level of insight, simply by virtue of their perspective.
2. Accounting and record-keeping. These are perhaps the most basic of accounting disciplines. While it makes sense for many business owners to manage their day-to-day records, an accountant can help set up bookkeeping and accounting systems and show you how to use them. A good system allows you to evaluate profitability and modify prices. It also lets you monitor expenses, track a budget, spot trends and reduce accounting fees required to produce financial statements and tax returns.
3. Tax advice. Accountants that provide assistance with tax-related issues usually can do so in two areas: tax compliance and tax planning. Planning refers to reducing your overall tax burden. Compliance refers to obeying the tax laws.
4. Auditing. These services are most commonly required by banks as a condition of a loan. There are many levels of auditing, ranging from simply preparing financial statements to an actual audit, where the accountant or other third party provides assurance that a company's financial information is accurate.

Choosing an Accountant
The best way to find a good accountant is to get a referral from your attorney, your banker or a business colleague. You can also check in with the Society of Certified Public Accountants in your state, which can make a referral.

While accountants usually work for large companies, CPAs (certified public accountants) work for a variety of large and small businesses. Don't underestimate the importance of a CPA. This title is only awarded to people who have passed a rigorous a two-day, nationally standardized test. Most states require CPAs to have at least a college degree or its equivalent. Several states also require post-graduate work.

Once you have come up with some good candidates, it is important to determine how much of the work your company will do and how much will be done by the accountant.

Accounting services can be divided into three broad categories: recording transactions, assembling them, and generating returns and financial statements. Although the first two categories require a lower skill level than the latter, many firms charge the same hourly rate for all three. This is why it's important to determine exactly what work you want an accountant to handle.

The next step is to interview your referrals. For each, plan on two meetings before making your decision. One meeting should be at your site. The other should be at theirs. During the interviews, your principal goal is to find out about three things: services, personality and fees. Here's what to ask in each area.

1. Services: Most accounting firms offer tax and auditing services. But what about bookkeeping? Management consulting? Estate planning? Will the accountant help you design and implement financial information systems? A CPA may offer services that include analyzing transactions for loans and financing; preparing, auditing, reviewing and compiling financial statements; managing investments; and representing you before tax authorities.
   
   Although smaller accounting firms are generally a better bet for entrepreneurs, they may not offer all these services. Make sure the firm has what you need. If it can't offer specialized services, it may have relationships with other firms to which it can refer you to handle these matters. In addition to services, make sure the firm has experience with small business and your specific industry.
2. Personality: Is the accountant's style compatible with yours? Be sure the people you are meeting are the same ones who will be handling your business. At many accounting firms, some partners handle sales and new business, then pass the actual account work on to others.
   
   When evaluating competency and compatibility, ask candidates how they would handle situations relevant to you. For example: How would you handle an IRS office audit seeking verification of automobile expenses? Listen to the answers and decide if that's how you would like your affairs to be handled.
   
   Realize, too, that having an accountant who takes a different approach can be a good thing. Just be sure that the accountant doesn't pressure you into doing things you aren't comfortable with.
3. Fees: Ask about this upfront. Most accounting firms charge by the hour with fees ranging from $100 to $275. However, others work on a monthly retainer. Get a range of quotes from different accountants. Also try to get an estimate of the total annual charges based on the services you have discussed.
   
   Don't base your decision solely on cost, however, as an accountant who charges higher hourly rate is likely to be more experienced and able to work faster than a novice who charges less.
   
   Also be sure to ask for references -- particularly from clients in your industry. Call them to find out how satisfied they were with the accountant's services, fees and availability.

Make the Most of the Relationship
After you make a choice, spell out the terms of the agreement in an engagement letter. The document should detail the returns and statements to be prepared and the fees to be charged. This ensures that you and your accountant have the same expectations.

Also, hold up your end of the agreement. Don't hand your accountant a shoebox full of receipts. Write down details of all the checks in your check register, whether they are for utilities, supplies and so on. Likewise, identify sources of income on your bank deposit slips. The better you maintain your records, the less time your accountant has to spend and the lower your fees will be.

It's a good idea to meet or at least speak with your accountant every month. Review financial statements and go over problems so you know where your money is going. Your accountant should go beyond number-crunching to suggest alternative ways of cutting costs and act as a sounding board for any ideas or questions you have.

Excerpted from Start Your Own Business, Fifth Edition by the staff ofEntrepreneur.

CPA Poll Indicates Upward Hiring Trend

In a poll conducted by the American Institute of CPAs, accounting executives in US companies are projecting increased hiring despite concerns about the outlook of the American economy. The quarterly AICPA Economic Outlook Survey polls CEOs, CFOs, controllers and other CPAs in U.S. companies who hold executive and senior management accounting roles, according to Accounting Today.

Friday’s monthly jobs report from the U.S. Bureau of Labor Statistics indicated that current hiring trends are still relatively weak. The AICPA survey, however, serves as a forward-looking indicator of hiring expectations over the next 12 months. 

Some 15 percent of respondents now say they have too few employees and are planning to hire in the next 12 months, up from 12 percent last quarter and 9 percent a year ago. Another 19 percent say they have too few employees but are reluctant to bring on new staff. 

Some 53 percent of business executives indicated their companies have the right number of employees. The largest companies (those with more than $1 billion in annual revenue) are more likely than other businesses to say they have too few employees. On an industry basis, the construction, technology, and professional, technical and scientific services sectors are expected to post the largest job growth.

If you're anticipating hiring additional personnel for your company and you have questions, please give Neikirk, Mahoney & Smith PLLC a call. We'd be happy to advise you. 

See this from Indeed.com (http://indeed.com) 

Job Postings 119,868	Accounting job postings have increased 6% since August 2012. Clicks on Accounting jobs have increased 21% since August 2012.
Clicks 9,335,782	Top Job Titles Clicks 0 300,000 Staff Accountant 271,435 Accountant 155,785 CONTROLLER 149,790 Accounting Clerk 147,114 Account Manager 145,383 Business Analyst 141,325 Senior Accountant 127,767 Accounts Payable Clerk 117,342 Bookkeeper 104,872 Accounting Manager 90,934
Top Keyword Searches Clicks 0 950,000 accounting 913,060 accountant 369,358 accounts payable 190,849 controller 147,898 finance 105,920 payroll 101,228 business analyst 80,793 accounts receivable 76,810 staff accountant 72,199 bookkeeper 70,481	Top Locations Clicks 0 450,000 New York, NY 449,970 Houston, TX 243,176 Atlanta, GA 211,652 Chicago, IL 205,303 United States 187,862 Washington, DC 147,953 Los Angeles, CA 141,926 Dallas, TX 132,259 Charlotte, NC 114,439 San Francisco, CA 105,963
Statistical approximations are used to compute these results.

Business Costs for 2012 Expected to Rise, WSJ Says

The Wall Street Journal is predicting that the cost of doing business will rise again in 2012 and businesses might have difficulty passing along those increases to customers. That might be good news for the Federal Reserve, but it isn't good news for business, the Journal says.

"Within their monthly surveys, the Fed banks of New York and Philadelphia added special questions about cost expectations for 2012. Although each bank asked slightly different questions, the results were similar. Businesses expect to pay more for labor and supplies, but energy inflation should ease.

Employee benefits, especially health care coverage, are expected to be the biggest cost headache next year.

"New York respondents expect overall benefits, on average, to rise 6.1% next year. Philadelphia respondents see their health care benefits alone rising 7.3%.

"Wages are anticipated to rise 2.8% in New York state, and 2.1% around the City of Brotherly Love.

Energy costs are seen rising about 2.9% in New York and 1.8% in Philly. That’s a relief–or maybe wishful thinking–from the 2011 experience. Nationally, yearly energy inflation is running more than 10%.

"The question for the inflation outlook is how much of the higher costs will businesses be able to pass along to their customers. The evidence is sparse but suggests, not much. Only the New York Fed asked about expected selling prices. Respondents on average hope to raise their prices by just 1.8%.

"Of course, the lack of pricing power reflects the fact that consumers are still quite bargain-conscious. That in turn is the result of the small pay raises businesses have given out and–as the surveys show–plan to dole out again next year.

"Without more cash in their pockets, consumers will resist higher prices except for staples, such as food and energy. Consequently, the Fed can rest easy; inflation will not be a problem next year. The central bank can continue to focus on promoting economic growth.

"Most businesses will not be so lucky. Companies have been able to offset some of this year’s cost-price squeeze through higher productivity. But that trend looks played out. As a result, expect more downward pressure on profit margins in 2012." from the Wall Street Journal