| We are hearing that things are picking up in some areas of Georgia’s economy. This is based on our informal survey of clients, CPAs, bankers and other business advisors.
Indicators include employees are working overtime, temps are being added, and investments are being made. As your clients are making these decisions, try to give them advance notice of the potential tax credits they could realize. You want to make sure they do at least the minimum so they can utilize these incentives. For example:
Ask to participate in their planning meetings and talk with their business advisors to make sure you are included.
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We help companies all over Georgia identify and obtain tax credits. Tax credits maximized. Risk minimized.
Posts Tagged ‘CPA’
Are Things Picking Up?
Tags: CPA
Who is Your Ideal Client?
This comes in handy when I meet with companies that are starting up, relocating to Georgia, or having significant growth. They are looking for business advisers, often from CPA firms, who can help them. Knowing your ideal client helps me refer the best adviser for the job.
Suggestion: clearly define your ideal client so that your network of business advisors can help (such as bankers, attorneys, insurance agents, tax credit consultants and others). If it’s easy to remember, hopefully they will bring you opportunities for new business.
Tags: CPA
Watch Out for Tax Structure Changes!
Now that tax season is here, the fun begins. Clients are probably dumping their tax documents (electronically and physically) at your office and asking when their tax returns will be completed. As you dig through all of the details, you discover some changes the client forgot to mention that will impact their taxes.
We had a similar situation recently. The client’s tax structure changed – they converted from a C corporation to an ESOP (100% S corporation), so they no longer pay income taxes. The client didn’t tell us about this change. Meanwhile, the client spent time and resources to collect their state tax credit documentation. As usual, we helped them get the tax credit certification and delivered it to their CPA. The CPA didn’t know what was going on since he had already talked with the client about the change. The client forgot that paying no taxes meant that they could not use tax credits.
If your clients have utilized tax credits in the past, you need to help them understand (and beg for no surprises!) their potential to utilize the tax credits in the future. Major changes in tax (such as tax structure, future NOLs, equity ownership and other items) can have a major impact on the ability to use tax credits (and save your client time and resources).
Tags: CPA
A Client Who Loves to Pay Taxes??!!
An unfortunate part of business success is having an income tax liability. And despite your best efforts of tax planning and advice, your clients may still have to pay taxes. But that’s good, because tax liability is an indication of revenues, profits and business success, right?
We heard an interesting story about a a highly successful multi-million dollar a year business owned by a man with an eighth grade education. One of our friends heard him say, “I just love to pay taxes.”
The business owner went on to explain that he was perfectly happy to pay his obligations, because he knew he had already done everything he could legally and morally to keep his tax payments to a minimum.
Got any clients like that? Maybe not very many, but your year-end and 2011 tax planning is a great time to discuss opportunities to reduce taxes with all of your clients.
Some ideas to explore with your clients include:
- New software or business process changes – Retraining Tax Credit
- Adding employees – Georgia and Federal job tax credits
- Adding land, buildings, or equipment – Investment Tax Credit, cost segregation study, and energy incentives
- Business or product changes – Georgia and Federal research tax credits
- Large Georgia income tax liability – Georgia Film and Low Income Housing tax credits
Get your clients talking about their business (including prior years and plans for the future). There may be hidden gems of potential tax $$ savings that you can uncover for your clients!
Tags: CPA
Take the 100-Hour Challenge!
What is the best way to utilize 100 hours of your time over the next 2 months: billable hours – OR – business development?
Scott Bradbary, of The Rainmaker Academy (click here) posed this question to the audience at the recent GSCPA – Firm Practice Management Conference at the Ritz Carlton Reynolds Plantation. Alpharesults helped sponsor the event, attended by 34 partners from CPA firms across Georgia.
Scott’s audience survey found an average billable rate of $200/hour and average new client revenue of $30,000 in the first year. Based on CPA industry averages, he said that a new client will provide 50% of revenue in subsequent years and stay with the firm 6 more years = $120,000 ($30,000 + ($30,000 x 50% x 6 years)).
And, each new client should provide an additional 4 new referral clients. For that 100 hours of business development, you could get $600,000 (5 clients x $120,000)!
Which had you rather have, $20,000 now ($200/hr x 100 hours) or $600,000 over the next seven years?
Scott challenged the audience to take this 100-Hour Challenge, and I think it’s a great challenge for you! So get out there and spend 100 hours over the next two months developing business. Network with bankers, lawyers, insurance agents, economic developers, and even tax credit consultants 
.
Another thing — go ahead and make plans to attend the conference next November! It’s a great conference in a beautiful, relaxing setting. Hope to see you there!
Tags: CPA
What is Immaterial About Tax Credits??
As you review tax saving opportunities for your clients, you may not have much time to explore activities that qualify for state tax credits. On the surface, tax credits may appear to be too small $ and not worth your or your clients’ time and resources. In addition, the cost to amend the corporate and the equity owners’ personal tax returns may cause hesitation.
Sound familiar? Clients have told us that their CPAs throw out buzz words like “immaterial” and “onerous duty” as vague reasons not to pursue the tax credits.
It is funny how a recession can redefine words. When things were great a few years ago, the tax credits had to be BIG $ to be worth pursuing. Well, this recession seems to have significantly lowered the $ threshold and changed the meanings of “immaterial and “onerous duty”!!
Suggestion: Re-evaluate your clients’ situation and do a quick net-after-tax benefit analysis (after all other fees including fees for amending tax returns). If the hard $ benefit to each owner is a few $ thousand, it may be worth it. During these tough times, an “immaterial” event like a tax credit may keep your client happy!
Tags: CPA
Tell your clients about tax credits — so they won’t have to ask!
We got great feedback from last month’s article about “Why didn’t my CPA tell me about tax credits” (click here). You sent us comments and concerns about engagement letters, law suits, being too busy and not knowing what to look for.
How can you find out if they can utilize tax credits? With tens or hundreds of corporate clients, you have a hard time keeping up with them all. Bottom line: most of the Georgia tax credits are for companies that are investing in themselves. This includes adding jobs, expanding, moving, implementing new software, and many other activities. One way or another, all of these investments show up on the accounting and tax related documents that your client provides to you.
Some CPA firms have incorporated data mining IT tools to analyze these documents (such as flagging any clients whose capital assets increased more than $100,000 year-to-year). Others visit their clients on site to pick up these documents and spend time talking with their clients about their business. Still others rely on “opt in” check boxes in their client communications — not very effective if the client doesn’t already understand tax credit opportunities!
We are hearing more and more recently that clients are shopping all of their professional service providers – including CPA services. Make sure your clients know about your value by letting them know that you are doing more that just keeping them compliant – you are trying to help them save money with tax credits!
Tags: CPA
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