The LA CPA

How Does a Small Business Grow? You Can Try to Think Like A Rock Band

How Does a Small Business Grow? You Can Try to Think Like A Rock Band

We were called the Mini Playboys. Three ten year old musicians who temporarily put down their rock roots to play old standards, big band, and Italian songs. The band consisted of a drum, guitar, and accordion. We almost never played like this for our friends for the obvious reasons, but played at old folks parties and restaurants. Heck, we each earned $5.00 an hour in 1967 when minimum wage was $1.40. Great money! Our band focused on a strategy to hit a particular niche market, and it worked for 2 years until we went our separate ways.

I came across an article by Apryl Peredo

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Predicting and Accomplishing Your Business Success

Do you own a struggling small or mid-sized business? Are you between jobs and want to start your own business, but are intimidated with the high failure rate? Join Rick and Brandon as they use a method described in Les McKeown’s Predictable Success, Getting your organization on the growth track-and keeping it there. Learn about the business’s good and bad cycles and the stages they go through. Rick and Brandon leave you with tips on how to get out of bad cycles and into a balance, which he calls Predictable Success.

Listen To Our Podcast Here

Business Vision and Goals: Understand the Target You are Aiming For

In the early 1970s, I watched a Stanford professor choose Jim Plunkett, (Stanford’s star quarterback) to demonstrate perception and the brain. The professor placed a pair of glasses on Jim that caused his vision to be distorted, shifting everything he sees to the right about 20 degrees. Jim missed his attended receiver throwing consistantly to the right by 20 degrees.

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We hope our articles were informative. All questions, comments,and feedback are welcome.

Sincerely,

The LA CPA

Are Business Strategies Obsolete? Does it Matter?

My wife and I have started a new hobby of collecting and reselling small antiques. We really enjoy “the hunt,” but one of the most rewarding aspects is our increased knowledge of 100 year old household tools. One such item was a nickle/steel handle with a cone cup on the end. The cone cup had a butterfly handle on the end of the cone that turned blades inside the cone, scraping the sides.

Almost nobody guessed its function, which was a Delmonico ice cream scoop.

Today, the basic operation of the Delmonico ice cream scoop is the same, scoop it up, and scrape it out.

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Business Plans Can Be as Entertaining as a Russian Nesting Doll

Are you thinking about starting a new business? Whether you are starting a new business or wanting to expand your current business using investors, you will need a business plan. But how should you go about it? Hire a financial consultant? Or maybe buy the expensive software that churns out business plans? Join Brandon and Rick as they go through the steps of building a business plan and the pitfalls that many stumble into when doing so.

Listen To Our Podcast Here

Strategic Thinking: Don’t Confuse Tactics for Strategy

“There’s nothing worse than a sharp picture of a fuzzy concept.” -Ansel Adams

“There is nothing more wasteful than becoming highly efficient at doing the wrong thing.” -Peter Drucker

Mike Michalowicz’s article The 90-Day Method: A Strategy For Business Growth in Difficult Times offers some suggestions for business to strategize. He says that a business owner should ask what they have done in the last 90 days that has brought results, and then replicate those things that were successful. Even though these may sound like sage advice, they can be interpreted as tactics instead of strategy.

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We hope our articles were informative. All questions, comments,and feedback are welcome.

Sincerely,

The LA CPA

Are Music and Small Business Creativity Leaving Us?

A Rick E Norris, An Accountancy Corp Publication

Issue: # August 12th 2015

Welcome to the LA CPA Expose’ . These articles outline business and personal financial advice on a variety of topics. You should always consult your professional and legal advisors before implementing any new strategies.

Pareto’s 80/20 Principle: Business Playing the Odds
Amazing, just amazing. No more than amazing, it was magic. That was my first reaction to the 80/20 rule when I reached into my pocket and saw that 20 % of the coins equalled 80% or more of the value. So, I read the book The 80/20 Principle, The Secret to Success by Achieving More with Less by Richard Koch.

That was a few years ago. Since then I have applied the concept of the book (and the 1906 Italian economist Vilfredo Pareto who created the principle) in many business situations. Here’s a few conclusions:

Read On

Policies, Processes and Procedures can Save a Business and Even Lives

Do you run your business by the “seat of your pants?” Do you engage company policies, processes and procedures? Do you know how these three concepts differ? Join Rick and Brandon as they lift the veil off these seldom implemented small and mid-sized business necessities. Learn the importance of these components in Rick’s story as a Mounted Volunteer Patrol serving in the Santa Monica Mountains with his wife Judy, as they responded to a life-threatening emergency.
Listen To Our Podcast Here

Is Music and Small Business Creativity Leaving Us?

Have you heard? We’re still in a major recession. Well, not according to our government.

However, according to Paul Resnikoff’s article, What is the Economy Doing to Creativity , our current economic disaster may quiet musicians because of their prolonged economic struggle.

I think Paul is on the wrong side of history. Artistic and business creators could not have a better feeding ground than our current economic condition:

Read On

We hope our articles were informative. All questions, comments,and feedback are welcome.

Sincerely,

The LA CPA

What Moving Expenses Are Tax Deductible?

We occasionally acquire clients who move their tax residences for a new job. There is always a lot of confusion and questions about what is deductible. Here is some guidance from the IRS.

If you move your home you may be able to deduct the cost of the move on your federal tax return next year. This may apply if you move to start a new job or to work at the same job in a new location. In order to deduct your moving expenses, your move must meet three requirements:

Your move must closely relate to the start of work. In most cases, you can consider moving expenses within one year of the date you start work at a new job location. Additional rules apply to this requirement.
Your move must meet the distance test. Your new main job location must be at least 50 miles farther from your old home than your prior job location. For example, let’s say that your old job was three miles from your old home. To meet this test, your new job must be at least 53 miles from your old home.
You must meet the time test. You must work full-time at your new job for at least 39 weeks the first year after the move. If you’re self-employed, you must also meet this test. In addition you must work full-time for a total of at least 78 weeks during the first two years at the new job site. If your tax return is due before you meet the time test, you can still claim the deduction if you expect to meet it.

See Publication 521, Moving Expenses, for more information about the rules.

If you qualify for this deduction, here are a few more tips from the IRS:

Travel. You can deduct certain transportation and lodging expenses while moving. This applies to costs for yourself and other household members while moving from your old home to your new home. You may not deduct your travel meal costs.
Household goods and utilities. You can deduct the cost of packing, crating and shipping your property. This may include the cost to store or insure the items while in transit. You can deduct the cost to disconnect or connect utilities at your old and new homes.
Expenses you can’t deduct. You may not deduct:
- Any part of the purchase price of your new home.
- The cost of selling your home.
- The cost of breaking or entering into a lease.

See Publication 521 for more examples.

Reimbursed expenses. If your employer later pays you for the cost of a move that you deducted on your tax return, you may need to include the payment as income. You must report any taxable amount on your tax return in the year you get the payment.
Address change. When you move, make sure to update your address with the IRS and the U.S. Post Office. To notify the IRS, file Form 8822, Change of Address.

For other advice on family budgeting, check out our podcasts:

Family Financial Issues–Part II (Spending Your Monday) and Shopping in Tijuana.

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IRS CIRCULAR 230 DISCLAIMER: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, (Firm) would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

How Can I Pay my taxes? What if I Can’t Afford to Pay Them?

We get clients all of the time that are in tax trouble. Many neglect filing their tax returns for years because they are afraid of the tax balance due. This is the worst mistake you can make because if there is income reported under your social security number, then the federal and state agencies will find you. There is no statute of limitations that will save you if you don’t file.

The IRS has provided some advice about paying your taxes. I have commented below with what we do to help.

Pay your tax bill. If you get a bill, you should pay it as soon as you can. You should always try to pay in full to avoid any additional charges. See if you can use your credit card or to get a loan to pay in full. If you can’t pay in full, you’ll save if you pay as much as you can. The more you can pay, the less interest and penalties you will owe for late payment. The IRS offers several payment options on IRS.gov.
Use IRS Direct Pay. The best way to pay your taxes is with IRS Direct Pay. It’s the safe, easy and free way to pay from your checking or savings account. You can pay your tax in just five simple steps in one online session. Just click on the “Payment” tab on IRS.gov. You can now use Direct Pay with the IRS2Go mobile app.
Get a short-term payment plan. If you owe more tax than you can pay, you may qualify for more time, up to 120 days, to pay in full. You do not have to pay a user fee to set up a short-term full payment agreement. However, the IRS will charge interest and penalties until you pay in full. It’s easy to apply online at IRS.gov. If you get a bill from the IRS, you may call the phone number listed on it. If you don’t have a bill, call 800-829-1040 for help.
Apply for an installment agreement. Most people who need more time to pay can apply for an Online Payment Agreement on IRS.gov. A direct debit payment plan is the hassle-free way to pay. The set-up fee is much less than other plans and you won’t miss a payment. If you can’t apply online, or prefer to do so in writing, use Form 9465, Installment Agreement Request. Individuals can use Direct Pay to make their installment payments. For more about payment plan options, visit IRS.gov. (We work with the IRS and state agencies to set up installment agreements like this. We recommend that you use their direct payment from your checking account so you don’t miss a payment and invalidate the agreement.)
Check out an offer in compromise. An offer in compromise, or OIC, may let you settle your tax debt for less than the full amount you owe. An OIC may be an option if you can’t pay your tax in full. It may also apply if full payment will cause a financial hardship. Not everyone qualifies, so make sure you explore all other ways to pay your tax before you submit an OIC to the IRS. Use the OIC Pre-Qualifier tool to see if you qualify. It will also tell you what a reasonable offer might be. (We have found this pretty hard to do if you have assets or access to credit.)
Change your withholding or estimated tax. If you are an employee, you can avoid a tax bill by having more taxes withheld from your pay. To do this, file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. The IRS Withholding Calculator tool on IRS.gov can help you fill out the form. If you are self-employed you may need to make or change your estimated tax payments. See Form 1040-ES, Estimated Tax for Individuals for learn more. (This is proactive for the current tax year. We prepare tax projections to help clients pay in the proper amount of taxes throughout the year.)

To find out more see Publication 594, The IRS Collection Process. You can get it on IRS.gov/forms at any time.

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Competitive vs Competitor

A Rick E Norris, An Accountancy Corp Publication

Issue: # August 31, 2015

Episode #35 Competitive vs Competitor, Knowing the Difference Using the Southwest Airlines Story

Join Rick and Brandon as they use one of Seena Sharp’s books, Competitive Intelligence Advantage which can give you the small business edge that you have been searching for.

Listen Here!

All questions, comments,and feedback are welcome.

Sincerely,

The LA CPA

Is it a Good Idea to Pay off a House?

DeBabbitting the Business Strategy Process: Can Creative People Be Developed?

My grandfather left quite a legacy. He came from Italy as a boy to start a new life. He acted in and scripted silent movies, fought in WWI, tightrope walked between two eight story buildings (without a net) over a busy Chicago street, helped build navy ships as an electrician during WWII, and founded a successful restaurant with his wife and nine kids.

His success in the variety of endevours is grounded in one quality: creativity. Creativity is a right-brain function, natural to some and alien to others. Should all brain-storming teams have a business strategist who has this trait?

Read On

Improving Your Business Immediately with Pareto’s 80/20 Rule and Tea

Would you like a quick way to improve your business? Have other projects taken too long before showing results? Learn a faster way to improve your business in different areas with Pareto’s 80/20 Rule. Join Rick and Brandon on the Improv-ing Business Podcast as they discuss Rick’s visit to the Charleston Tea Plantation and how the 80/20 Rule applies to tea.

Listen To Our Podcast Here

CPA Economic Depression Thinking: Buy Your House and Pay it off…Good Idea? Maybe.

As a CPA, I have categorized home-owner’s financial strategy into two categories over the last 32 years: One, the Depression Victim, and Two, the Leverage Junkie. The Depression Victim’s financial strategy is a person who has lived or heard about people living during the Great Depression of the 1930s. My mother is like that. The philosophy goes like this. You buy a house, and you pay it off, period…Sure, you can buy rental real estate, but don’t use your house as a piggy bank.

The other financial strategy extreme is the leverage junkie. Looking at them through my CPA glasses, I see that a person who holds that philosophy will buy a house, and then when it goes up in value, borrow against it to buy an other.

Read On

We hope our articles were informative. All questions, comments,and feedback are welcome.

Sincerely,
Rick E Norris

Fulfilling Your Passion by Creating a Non-Profit Business

Business Strategy and Tactics: What We Can Learn From How We Raise our Kids

Our kids hate us…when we don’t give them money. Oh sure, we pay of their schooling, sports, and other school-related activities, but we are determined to require them to work for their recreation money. All three of my boys have worked for me from time to time.

So, when I came across Barbara Haislip’s article, How to Raise en Entrepreneur, it rang true with lessons with business strategy and tactics:

Read On

Fulfilling Your Passion by Creating a Non-Profit Business

Do you have a passion to do charitable work? Have you thought of creating a non-profit to make the world a little bit better? Have you been asked to volunteer or participate on a board of directors of a non-profit? Today, we will be addressing this aspect of our society and some advice to starting or maintaining your own on-profit business.

Listen To Our Podcast Here

Antiquing: How My Wife Convinced Me, and The Impact on Business Strategy

It started with Chumlee. I walked through the living room to my computer and stopped to watch Rick and Chumlee on Pawn Stars discuss the historical significance of something like a musket rifle. This intrigued me, but what really got me interested in their antiques was “value.” No, I don’t mean some 1920 decorative egg, I mean something that won’t break down within two years like my microwave.

Eight years ago, we purchased moderately expensive sconces. We didn’t realized that they would only last about five years. They developed an electrical short, and succumbed to the outside elements.

Inspired by the Pawn Star’s antiques, I bought four 1929 sconces at an estate sale that I will recondition. I believe these will be a better value than going to a lamp store to pay $200 per sconce. These antiques have lasted over 80 years, and are pretty cool to look at. I believe they will be a good value.

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Mobile Payment Strategy: Is Your Small Business Developing One?

A Rick E Norris, An Accountancy Corp Publication

Issue: # July 8th 2015

Mobile Payment Strategy: Is Your Small Business Developing One?

I remember around 1970 asking for a “stingray” type bicycle with a five speed stick shift and a slick tire. I was definitely leap-frogging my friends’ stingrays who lacked multiple gears. I nailed them on the hills. My bike was the early precursor of the multi-gear mountain bikes that cost up to $5,000 today. I was ahead of the pack, for a while anyway.

Last December, I wrote about the mobile payment strategy in Is Your Viral Strategy Becoming Obsolete? I asked the question of whether your strategy and tactics are being adjusted to accommodate the next horizon? If you were, you were ahead of the pack.

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In a Company’s Strategic Culture, Where There’s Smoke There’s Fire! (But What if You Can’t See the Smoke?)
Employee resistance is the most common reason executives (and small business owners) cite for the failure of organizational change. Strong, respected change leaders i.e., people with informal influences, is needed to convince employees about the value of a new business strategy. Your effort to convince those who can influence others may create cultural change, allowing employees “own” the process. Join Rick and Brandon as they give some tips on how to nurture these key individuals.

Listen To Our Podcast Here

Social Marketing Cloud Computing: Ground Control to Major Tom

“Ground Control to Major Tom
Commencing countdown, engines on
Check ignition and may God’s love be with you”

When David Bowie sang these lyrics, the astonauts’s image touched us. We wondered what the astronaut was thinking, and why did he suffer a demise.

Cloud comuting is going private. Dan Rowinski came out with an article, The Personal Cloud will be a $12 Billion industry business by 2016. He claims that this will be the next horizon. In addition, an article by Jim Blasingame Social Media Builds Customer Communities touches on this new frontier combining cloud computing and social networking.

Read On

We hope our articles were informative. All questions, comments,and feedback are welcome.

Sincerely,

CPA Tax Tip: Businesses Should Check Now to See if They Are Subject to The Affordable Care Act for 2015

Don’t be left scrambling in 2016 when your tax return is due. Examine your healthcare responsibility now and set up procedures. The IRS has shared some guidelines:

Under the Affordable Care Act, applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are required to take some new actions. To prepare for 2016, if your organization is an ALE, you need to track information each month in 2015, including:

Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable
Whether your employees enrolled in the minimum essential coverage you offered

You need to track this information because you could be subject to an employer shared responsibility payment if your organization falls into either of these circumstances:

You offered coverage to fewer than 70 percent of your full-time employees and their dependents in 2015 and at least one full-time employee enrolled in coverage through the Health Insurance Marketplace and receives a premium tax credit. The 70 percent threshold is for 2015, after 2015 this increases to 95 percent.
You offered coverage to at least 70 percent of your full-time employees and their dependents in 2015, but at least one full-time employee receives a premium tax credit because coverage offered was not affordable, did not provide minimum value or the full-time employee was not offered coverage. After 2015, this threshold increases to 95 percent.

We can help you compile this information so that you can rest assure that you are in conformity.

For more information about reporting requirements, visit the Employer Shared Responsibility Provisions Questions and Answers page on IRS.gov/aca.

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