As the stock market decreases and bad economic news of China increases, some think we are heading into an economic recession. You have two choices: 1) Ignore the signs and spend money as usual. Or 2) Take a good look at your earning and spending patterns and change them. Today we’ll give you some tips on how you can prepare for a Recession before it happens. We’ll use the story of an Italian Immigrant family (the Alfanos) who survived the The Great Depression.
Category: Uncategorized
CPA Guide to 2011 Charitable Contribution Documentation
Years ago, I went through great lengths to report and substantiate the tax deduction of a client’s Piccaso. He supplied us with a rare expert to sign the qualified appraisal of Form 8283. However, upon review by the IRS, I learned that the appraiser was the person my client purchased the art from. Thus the IRS won with their “qualified” appraiser for a lesser value.
At this time of year, many taxpayers make their year end contributions. Here are some basic guidelines:
- Cash donations: Obtain written acknowledgement from the charity for each donation.
- Non cash donations of less than $250: Obtain a receipt from donee
Business Strategy: Don’t Replicate, Innovate
Business Strategy: Don’t Replicate, Innovate
I remember back around 1990 when a film producer client told me about a great script of a kid who foiled robbers. I responded that it sounded like Home Alone. His eyes lit up and he said, ” That’s why it will be a hit because the Home Alone concept is so big now.”This meeting came back to me when I read Shira Levine’s article, What it will take to become the internet’s next big thing. It reminds me of so many copy cat product and services.
So many business persons set their strategy in the direction to replicate what a successful business person has already accomplished. That is not American Ingenuity. These businesses just ride on the coattails of the creativity of others.
 Competitive vs Competitor, Knowing the Difference Using the Southwest Airlines Story
Do you know that difference between the competitive intelligence and competitor intelligence? Does it matter, or is it just a play on words? 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.
 Business Models: The Big Data Pitfall
When my youngest son Austin was in middle school, his small business enterprise was known as “the candy man.” He would go to the 99 Cent Store and buy about $50 of candy in bulk. He then broke them down selling them in small quantaties for $1-$5 in his small business. My favorite story is when he would approach the kids who were not strong in math. It went like this, “Hey, sell you 4 airheadsfor $6.00 ?” The kid pulled back, “No way, that’s a rip off?” My son would respond, “Ok, how about 3airheads for $5.00?” “
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 We hope our articles were informative. All questions, comments,and feedback are welcome.
Sincerely,
The LA CPA
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Are Business Strategies Obsolete? Does it Matter?
 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.
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.
 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
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Are Music and Small Business Creativity Leaving Us?
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Competitive vs Competitor
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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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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.
The L A CPA Expose’ (Rick E. Norris, An Accountancy Corporation)
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Venture Capital Risks: As a Business Owner, Don’t Give Them Your First Born
Everyone loves to hear of a business gamble that pans out big time. As a business manager for entertainers, I have worked for some big names. Over 25 years ago, I learned from my mentor that he started as a TV lawyer in the early 1950s. The field was wide open and attorneys not only tested the legal waters, but also their billing practices. My employer started with an unemployed writer who needed some contract negotiations. He didn’t know what to charge the writer, so at this early stage, he took 10% of the writer’s new production company. My mentor charged for his services soon after that, but in the 1980s he cashed in his 10% holding when the writer/producer “went public.” The unemployed writer had evolved into one of the biggest names in television.
Watch Out for the Run-Away Credit on First and Hill!!
Have you maxed out your credit cards? Are you paying the minimum for each credit card each month? Are you financially in “over your head” without a strategy to relieve the pressure? Join Rick and Brandon as they draw analogies between run-away credit and a run-away car. Learn some tips on reducing that nagging credit card debt and improving your personal cash management.
American Business Culture: Do You Have Italian “Horse Brains?” My Italian grandfather was born in Calabria, Italy in 1899. He only had a 6th grade education, and struggled to support a family of 11, much of it during the Depression. However, when he died 1988, he and my grandmother owned a successful restaurant, and 7 homes in the Los Angeles area. Even though he was proud that I attended UCLA, he use to say, “You study books, but I am smart because I have ‘horse brains.'” Then he would snort like a horse. |
An Entertainment Industry Accounting Firm That Saves You Money
An Entertainment Industry Accounting Firm That Saves You Money
Whether you’re an entertainer or entertainment company, you have one thing in common: You need to spend your time doing what you do best. And that’s definitely not accounting or taxes.
Luckily, you have an entertainment industry accounting firm on your side to guide you through the complex issues facing entertainers and entertainment companies. From accounting to bookkeeping to payroll to audits, you need an experienced entertainment industry accounting firm to look out for your best interests.
How Do You Choose an Entertainment Industry Accounting Firm?
The answer is simple: Experience, expertise, and accountability.
- Experience: With over 25 years of experience, our entertainment industry accounting firm knows what works, what doesn’t, and what you need to know to be successful. Sometimes it’s true that you have to experience it to believe it.
- Expertise: Not every accounting firm provides services for the entertainment industry. In fact, most don’t. It’s a complex area of accounting that most firms shy away from. We don’t. As a premier entertainment industry accounting firm, we pride ourselves in our ability to not only represent but give clients an unrivaled accounting experience.
- Accountability: It’s not a play on words. Our contracts hold us financially accountable to our accounting services. If there’s ever any issue with the IRS or other entity, we won’t just stand beside you. As your entertainment industry accounting firm we’ll go the extra mile to ensure you’re protected from any liability. What more of a safety net do you need?
Let’s face it: Most accounting firms don’t know the nuances of dealing with the many unique issues facing an entertainer or entertainment company. As your one-stop-shop for entertainment industry accounting firm needs, we offer:
- Accounting and outsourced financial management
- Bookkeeping
- Audits
- IRS problem resolution
- Reviews and compilations
- Tax services
- Strategic Planning
The bottom line? As an entertainment industry accounting firm, we make your life easier and save you money. Whether you’re an actor, director, musician, photographer, producer, recording studio, writer, or anyone in between—or if you’re an entertainment company representing one of these professionals—your business is creative. Ours is serious. It’s about numbers. It’s about saving you a lot of money.
Choosing an Entertainment Industry Accounting Firm: What’s Next?
It starts with a phone call to 310-216-7632 or an email to RNorris@RickNorrisCPA.com. We’ll quickly see if we’re a good fit and how our entertainment industry accounting firm can make a difference to your bottom line. Visit us online at www.RickNorrisCPA.com.