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My 2010 Resolutions
I spent some time in this newsletter talking about resolutions so I thought I'd share a couple of mine with you. After all, there's nothing like accountability to drive change.
Biz Dev. After a flat year of revenue in 2009 I have set a target of 40% growth for our businesses over the next twelve months. It might sound ambitious but we have significant capacity in our upstart bookkeeping business and we are launching a new consulting business in Q1 to focus exclusively on small to mid-size companies in the $20 - $100 million market. Look for more announcements on both in the coming months.
Writing. I have been undisciplined in my writing for the last year and half. With two projects in the works it is time to buckle down and get some closure. In the first half of this year I expect to finish my first book outlining the growth cycle of small companies from startups to sustainable, professionally managed organizations. Hold me to it.
Teaching. Axiom is unique in it's approach to small business consulting services. We are highly collaborative, expecting the client to take an active role in every project, every process. One of my resolutions for the upcoming year is to evangelize our approach to others in the profession, give them insight into the tools we use and the immense rewards of bringing the client into the action. Toward that end I am looking for venues where other business consultants would like to hear about what we are doing and how we are doing it.
Org. Dev.
Axiom's team is small, and when we are firing on all cylinders there is not an organization large or small that can match our abilities and results. This year we will be doing more outside the office as a team. Whether it is volunteer events in the community or reaching out to meet a client's need we will be doing more outside the office this year than ever. If you are interested in coming along or if you have a good opportunity for us to give back please give me a call. |
Thanks
for taking time to read our newsletter. I hope that it has been useful
for you. If you are feeling overwhelmed, aren't getting the results you
want or just don't know where to start consider giving Axiom a call.
Axiom has three businesses tailored to meet the varied needs of our clients.
Our bookkeeping practice establishes a solid financial reporting foundation for your business and gives you peace of mind that your numbers are accurate.
Axiom CPA provides tax compliance, tax planning and financial accounting services to a diverse range of businesses and industries.
Axiom Consulting works with larger companies on strategic planning, profit building and organizational development.
If
you are referred by an existing client or business partner or if you
mention this newsletter you will receive a complimentary consultation
to discuss your business and how Axiom might be able to help.
You can call (941) 745-8006 or visit our web site at axiomcpa.com to get more information. |
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Dear Clients and Friends,
Welcome to the New Year! I don't think I'm alone in looking forward to great things in 2010. The last two years have been difficult for virtually anyone in business, but they have also been times of unprecedented opportunity. As those opportunities continue to grow in the coming year we hope to give you some information in our monthly newseletter that will help you take advantage of them.
Happy New Year!
Joey Brannon and the rest of the Axiom team
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Tax Season is Upon Us
Beat the Crowd to Your Tax Preparer
The clock started ticking when the ball touched down in Times Square. With the New Year comes the close of 2009 and for most individuals and businesses that means the close of another tax year.
Bookkeepers and controllers are busy closing the books for businesses and individuals are starting to stack up all those W-2's and 1099's for the annual trip to their tax preparer. If you worked with a preparer last year you should receive a checklist of items needed for your business returns as well as a more detailed "organizer" listing the various things you will need to prepare your personal tax return.
Axiom's business clients received this Business Tax Organizer Checklist today. Feel free to take a look and use it as a guideline when gathering documents. If you don't yet have a preparer we would be more than happy to meet with you. The information in this checklist will give us a great start.
Rather than just drop of your shoe box to the tax preparer take the time to setup an appointment. Here are a few ways you can get more than just a tax return out of this tax season.
- Get there early. Clients who show up in January make an impression. If you are prepared and able to come in before the mad rush starts your preparer will be
willing and able to give you more time. Turn around times in January and February are half of those in March and April. Don't delay, set your appointment for this week or next and beat the crowd.
- Talk about your goals and resolutions. Your tax preparer may only get one look per year at your overall tax picture. Don't waste it. By having some background on what you are trying to accomplish over the next year your CPA may be able to point out opportunities that can get you there more quickly.
- Setup a calendar for the rest of the year. Let your CPA know of any major events that are planned during the next year. If you meet quarterly go ahead and get those appointments on the calendar. If you have a travel itinerary make sure your CPA has a copy. Often there are seemingly mundane business transactions that have hidden tax or financial opportunities. But your CPA can't help if they don't know about these events.
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 New Year's Resolutions
Give Yourself a Chance
Every January health club memberships spike, beer and cigarette sales decrease and cookie jars everywhere run empty. But statistics tell us that by the following December only 12% of those who make New Year's resolutions actually keep them.
It is important to remember that a resolution is just a decision. Many times they cannot even be described as goals. For instance, the resolution to "eat healthy" cannot be measured. It is not specific. And if you cannot be specific enough to measure something it is nearly impossible to know whether you have been successful or not. Here are a few tips to help you stay in the 12%.
- Write your resolutions down. Getting anything out of your head gives it permanence. But don't just write them down anywhere. Find a place you're likely to come back to again and again. The front of a Bible or favorite motivational book is better than a loose leaf piece of paper. If you keep a diary or journal tape them to the inside cover. You can also copy them on little slips of paper and put there where you will see them every day.
- Craft at least one goal for every resolution. The resolution to eat healthy could be followed up with goals to "lose 20 pounds this year" or "reduce my cholesterol 20 points." Goals are measurable and you will need at least one to be able to determine if you have kept your resolution.
- Follow goals up with milestones and to-do lists. The resolution to increase sales may have a goal of a 20% revenue increase, a milestone of $150,000 sales increase for the first quarter, and a to-do list that involves sales training, re-writing the sales call script and going over pricing with the controller.
- Tell the world. When you blab about your resolutions people start to put pressure on you to keep them. Even if they are making fun of you it gives you incentive to prove them wrong. We need accountability, but there is no way to get it unless you tell someone what you plan to do.
You can be one of the 12% if you put more work into setting and planning your resolutions than the 88% who fail. Take the next step and spend some time clarifying your resolutions into goals, breaking your goals down into milestones and charting a course with a to-do list. |
Hot Topics for 2010
Keep these items on your radar
 Surtax on the Wealthy
The current health care bill being reconciled by Senate and House subcommittees has a very high price tag. In order to pay for it one provision would impose a 4-5% surtax on incomes over $1 million. Because it is a surtax it drives up the tax rates on ordinary, capital gains and all other taxable income. If you make more than $1 million the tax rate structure published in your CPA's tax guide won't apply to you.
Increased taxes...period
There was a collective sigh of relief when the clock tolled midnight on January 1. It is unlikely (but not impossible) that Congress would institute any retroactive tax increases. Most people expect 2010 rates to stay where they are. But no one believes 2011 rates will stay the same. Expect 5-10% tax rate increases on incomes over $150,000 (I know...I know, he said $250,000 but don't bet on it). It is also likely the 15% capital gains tax rate will be history. Expect people to reconsider installment sales, like-kind exchanges and other deferral strategies. Many people will be more comfortable paying their taxes now at lower rates rather than deferring taxes until later when rates are likely to be much higher.
Roth IRA Conversions
Roth IRA's have been around for several years but until this year you could not convert your traditional IRA to a Roth if you made more than $100,000. With the arrival of 2010 that limit has been lifted and the law allows you to spread the conversion tax over two years. The stock market is doing well and if it keeps gaining conversions that happen later in the year will get more expensive. Expect to read a lot in the financial press about Roth conversions and the urgency of converting before IRA account balances gain more ground. |
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