Rainmaking - Kicking Off Another Webinar Series
As we edge closer to the end of 2016, some of you may already be thinking about setting your goals for 2017. And, if you’re not, maybe you should be! In that spirit, we are once again preparing to deliver the three part “Jumpstart Your Rainmaking” webinar series, beginning December 7th. If you’re a follower of this blog and my communications, you know that we discuss topics designed for professionals who need to sell their services. It’s tough to go out there and sell yourself every day! Jumpstart focuses on how to develop the skills to keep your pipeline filled and how to generate revenue. Prior webinar participants have included CPAs, bookkeepers, attorneys, financial planners and even virtual administrative assistants. We are offering the webinar series now to help you put together a plan prior to year-end so that you’ll be ready to go with it come January 1. Won’t that feel good?
Why Take This Class?
You may be thinking – “Wait, Monika specializes in multi-state tax consulting!” That’s true. And as part of my practice, several years ago, I had to develop a system that would work for me to build my business. In the process of building that system over the years, I realized that it’s also teachable. So, in addition to having passion for helping clients navigate state tax issues, I also have passion for helping people understand how to build businesses and generate revenue. Why? It’s nice to help others grow and share in their success. I’ve had a lot of help over the years, and I want to pay it forward as well.
So, here are those rainmaking skills and the passion behind them, developed into a short, easy to manage Rainmaker webinar series for accounting and finance professionals. Why now? Because as I share with people what I’m doing and how – everyone tells me “Wow – this is really something people need!” So, I’m making it happen, with you in mind!Read more
FOCUS ON GEORGIA
The last of the original thirteen colonies is Georgia, the Peach State. Georgia is also known as the Empire State of the South. The state has varied terrain with mountains and natural rock in the northwest, urban areas, forest in the southern part and farmland.
There are also many points of interest that attract visitors to Georgia. In Atlanta, there are the World of Coca-Cola and the Georgia Aquarium. Stone Mountain, just north of Atlanta, is Georgia’s most popular attraction, receiving over 4 million visitors per year. Callaway Gardens, in western Georgia, is a family resort. The area is also popular with golfers.
The 10 Worst States for Women: Equality Issues Nationwide
Happy Election Day! Regardless of your politics, this is a notable election for many reasons, one of which is the possibility of our nation’s first female president. While we wait for the results to come in, I thought it would be interesting to take a look how women fare in states across the country. This article ranks the 10 worst states for women, based on economy, leadership and health (pulled from census data). Keep reading for the results.
Issues Surrounding Women’s Equality in the Workplace
No matter the outcome of today's election, the presence of a female presidential candidate sheds light on many women's equality issues, most notably the gender wage gap, inflexibility in the workplace for pregnant women and those with young children, and a clear lack of women in positions of political influence.Read more
SALES TAX EXPOSURE REVISITED
In our practice, we see many new clients who have sales tax exposure issues. And we, of course, are happy to help them identify and then mitigate that exposure. As we discussed in our blog last month, SALES TAX NON-COMPLIANCE: WHAT’S YOUR EXPOSURE, sales tax exposure can add up quickly. Sales tax is a gross tax and if not properly collected from the buyers at the time of the sale, it can come back to haunt the seller later.
In this month’s blog, we add a little more detail to the example we started last month, just to show how these liabilities can really add up- and how we can assist in remedying them.
When a client comes to us with multi-state tax issues, we start by asking the questions:
- Does the company have nexus in the state in which it sells its products? If yes, since when?
- Is the product taxable?
- Are there any exemptions?
- What is the potential retroactive exposure?
New: Important California State Tax Credits and Incentives Updates
Are you trying to pursue California’s state tax credits and incentives? If so, there are three recent updates you may want to know about:
California Competes State Tax Credit and Online Reporting Requirements
As of January 1, 2017, the Governor's Office of Business and Economic Development (Go-Biz) will be required to report more detail about businesses taking advantage of the the California Competes State Tax Credit.
Current law requires Go-Biz to report the following online:
- The name of each taxpayer that receives a state tax credit
- The estimated number of jobs that are created or retained by the credit
- The amount of credit the taxpayer is allocated
- The amount of state tax credit recaptured from the taxpayer
The new law requires Go-Biz to additionally post the following information online:
- The primary location where the taxpayer will increase the net number of jobs or investments
- Information identifying credits considered priority due to being located in a high unemployment or poverty area
- Information that identifies if the state tax credit awarded is counted toward the amount allocated for small businesses
Rainmaking – Building the Pipeline for your Firm
Most of us don’t like to have to go out and sell – partly because it makes us feel like we are “asking” for money. In my last Rainmaking blog, I asserted that it’s hard to ask for money and that theme continues to resonate. But what if asking for money were easier? What if it didn’t have to seem like asking for money? What if asking your clients to assist them with their tax, accounting and finance needs just seemed like an ordinary part of the conversation?
As accountants, many of us want to be valued by our clients because we are technically competent and trusted business advisors. But we don’t like to have to sell to them. And we certainly hate the thought of cold calling – it doesn’t really work in our businesses anyway! As partners or owners of firms, we understand that we must bring in business to survive, but younger staff members may not truly get that message – either because they simply don’t like to sell or because they are not receiving guidance from their supervisors. And we can all feel a little bit guilty about that. Yet, in order to build thriving CPA practices (or other professional services firms in general), we must be able to have the selling conversation with our staff so that they begin to add those skills. It begins largely with focusing on our existing clients and how we can provide additional value-added services to them. Here are some suggestions:
FOCUS ON WEST VIRGINIA
Known for its mountainous landscape and rolling hills, this month we travel east to West Virginia. The state has a rich history and is embedded in the Appalachian Mountains.
West Virginia is known for a wide range of outdoor recreational activities, such as skiing, whitewater rafting, fishing, hiking, backpacking, mountain biking and hunting. For something on the calmer side, the state offers many golf courses.
It is also one of the most densely Karstic areas in the world, making it a choice area for recreational caving and scientific research. Karstic topography is a landscape formed from the dissolution of soluble rocks such as limestone, dolomite, and gypsum. It is characterized by underground drainage systems with sinkholes and caves. These underground hydrology systems contribute to much of the state’s cool trout waters.
Important Change: When are Corporate/Partnership Tax Returns Due?
Do you take notice when it comes to new California tax laws and updates? Here is one that taxpayers and tax preparers alike will want to pay attention to.
Assembly Bill No. 1775: Updated Due Dates for Corporate and Partnership Tax Returns
Signed by Governor Brown in September 2016, a recent change to California tax law revolves around due dates for corporate and partnership returns. As the bill text explains, for tax years beginning on or after January 1, 2016:
- Partnerships need to file an informational tax return on the 15th of the 3rd month (changed from the 15th day of the 4th month).
- LLCs classified as partnerships need to file a return of taxes due and payable on the 15th day of the 3rd month (also changed from the 15th day of the 4th month)
- S Corporations need to file a tax return on the 15th day of the 3rd month (resulting in no change)
- Taxpayers subject to the Corporation Tax Law that aren’t S Corporations need to file a return by the 15th day of the 4th month following the close of its taxable year (changed from the 15th day of the 3rd month)
Rainmaking- It's Hard Asking People For Money
Ask people some of their least favorite things to do (at least professionally) – and you’re likely to get some familiar responses – public speaking, firing an employee (or a client), getting into confrontation, and selling! And selling professional services often tops that list – even for salespeople.
When I was in high school, I worked at an ice cream shop. What a great job. I got to serve ice cream, make sundaes and banana splits, shakes, and ice cream cakes and pies. I was on the giving end of happiness. And people on the other side of the counter were happy to be there. I didn’t have to worry about selling much because people were already in the store to be happy! But one day our store manager asked us all to attend a sales training seminar. I was 18 and remember the pitch like it was yesterday – it was called SMASH – “Sell More and Sell High” –and they were talking about ice cream. What did they want us to do as high schoolers pitching ice cream? Turn a single scoop into a double, or a small shake into a large shake. Ask customers if they wouldn’t rather have a waffle cone for a small extra charge. Inquire about upcoming birthdays and sell a cake or pie. So, even in the ice cream store, where happiness was already built in and people already were going to buy something, there was an opportunity to offer them more happiness, and more profit for the store. Maybe that’s when I truly became an entrepreneur!
Sales Tax Non-Compliance: What's Your Exposure?
An entrepreneur’s dream is to start her own business and witness it grow. First, she wants to see it grow locally. And then, she may see it grow statewide. Whether the company is a small retail operation or a cutting edge technology company, the next step up may be overwhelming as the business begins to operate across state lines. At that point, there are many strategic and tactical issues including hiring employees or contractors operating in other states, or the maintenance of inventory. These can lead to nexus, or taxable presence. And now the company has potential filing issues, for state unemployment, state income tax and sales tax. Many of these items are initially overlooked and can cause significant exposure- even for small start-up companies.
Example:
Let’s follow the life of ABC Company. It is based in Florida, and it is sending sales people to Texas and California. As a result they are generating sales in these other states and the company is growing. Everyone is happy; they are beginning to see a profit. However, the company is likely overlooking one key issue, which can be a very big deal- sales tax. They may not realize that they have not been collecting and remitting state sales tax in California or Texas. To make matters worse, those sales people may have territories that include other neighboring states as well. The company may not worry about it initially, but the Departments of Revenue (DOR) in these states will think otherwise.
Next, a few things can happen: the company can take action and be proactive or they can wait until the states find them. Let’s examine the alternatives.
