Following the ABCs of customer assessment
Every established business should regularly assess its customer base. One way to approach this task is to follow the ABCs. First, choose a time period and use financial data to calculate your customers’ profitability. Next, divide customers into three groups: 1) an A group of your most profitable buyers, 2) a B group of positive contributors, and 3) a C group of unprofitable customers. From here you can focus on nurturing relationships with the A group, elevating the status of B-group customers, and possibly moving on from the C group. Contact us for help.
Consider all the tax consequences before making gifts to loved ones
Many people choose to pass assets to the next generation during life, whether to reduce the size of their taxable estate, to help out family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime gifts, be aware that which assets you give can affect the tax consequences. For example, to minimize your heir’s income tax, gift property that hasn’t appreciated significantly while you’ve owned it. The heir can sell the property at a minimal income tax cost. Contact us to discuss the tax consequences of any gifts you’d like to make.
Now’s the time to review your business expenses
As we approach the end of the year, it’s a good idea to review your business’s expenses for deductibility. At the same time, consider whether you’d benefit from accelerating certain expenses into this year. There’s no master list of deductible business expenses in the Internal Revenue Code (IRC). Some deductions are expressly authorized or excluded, but most are governed by the general rule of IRC Sec. 162, which permits businesses to deduct their “ordinary and necessary” expenses. Also, the TCJA reduces or eliminates many deductions. Contact us to learn more.
How Lean Manufacturing Eliminates Waste in Industrial Environments
The mobile robot proliferation is an extension of lean manufacturing principles. Whether labor savings are from tugger application or with fork attachments, reliable navigation that requires no magnetic tape or RFID tags to guide its way safely through a facility, the growth the automonous environment is unstoppable. The two primary prongs of lean manufacturing eliminate […]
Tax-free fringe benefits help small businesses and their employees
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Those that are tax-free are especially attractive to employees. Examples include many types of insurance (health, disability, long-term care, life) and assistance plans (dependent care, adoption and educational), subject to certain limits. The tax treatment of some benefits, such as moving expense reimbursements and transportation benefits, has changed under the TCJA. Contact us to learn more.
529 plans offer two tax-advantaged education funding options
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. A prepaid tuition plan guarantees tuition regardless of its cost when the child attends the school. A savings plan can fund expenses beyond college tuition on a tax-free basis. The TCJA expands the definition of qualified expenses to generally include elementary and secondary school tuition. However, tax-free distributions used for such tuition are limited to $10,000 per year. Contact us with questions.
4 pillars of a solid sales process
Generally, there are four pillars of a solid sales process. First, your marketing and sales departments need to work together to create an expanding universe of customers and prospects. Second, a sense of urgency is crucial; determine how quickly salespeople are following up on leads. Third, documentation is important and unavoidable. Ensure you’re using the right technology to track leads and sales. And fourth, consistency in approach typically yields success. Look for irregularities in the sales process and eliminate them. Contact us for further info and ideas.
A strong BYOD policy combines convenience with security
Many companies now take a “bring your own device” (BYOD) approach to technology to boost efficiency while reducing IT costs. But BYOD comes with risks. Sensitive company data becomes much less secure when networks are accessible via personal devices that could be stolen, lost or hacked. Meanwhile, employees may worry about loss of privacy and whether you might wipe everything off their devices. A strong BYOD policy must balance these two concerns, ensuring security but also preserving employees’ control over their own devices. We can provide further information.
Charitable IRA rollovers may be especially beneficial in 2018
If you’re age 70 1/2 or older, you can make direct contributions (up to $100,000 annually) from your IRA to a qualified charity without owing any income tax on the distributions. This break may be especially beneficial now because of TCJA changes that affect who can benefit from the itemized deduction for charitable donations. While you might be able to achieve a similar result from taking the RMD, contributing that amount to charity and taking an itemized deduction for the donation, fewer taxpayers benefit from itemizing under the TCJA. Contact us for details.
Could a cost segregation study help you accelerate depreciation deductions?
Businesses that acquire, construct or substantially improve a building should consider a cost segregation study. It combines accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. This may allow you to accelerate depreciation deductions, thus reducing taxes and boosting cash flow. And the potential benefits are now even greater due to enhancements to certain depreciation-related breaks under the TCJA. Contact us for help assessing the potential tax savings.
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