Did Fraudsters Counterfeit Your Organization’s Checks?

Annie Yoder | July 20th, 2016

Scam Hurts Professional Caregivers, Businesses

Check Fraud | Caregiver Business | Ohio CPA Firm

Professional caregivers are being targeted by fraudsters after marketing their services via popular online websites. Unfortunately, these professionals aren’t the only victims of this fraudulent check scheme. Read on to learn more.

The internet can be a valuable tool for so many honest, well-meaning people. Unfortunately, it can also be a playground for fraudsters.

The Federal Trade Commission (FTC) continues to warn consumers about the dangers associated with a fraudulent check scheme designed to take advantage of those offering professional caregiving services on sites such as care.com or sittercity.com. But these individuals aren’t the only targets. Fraudsters are using the existing account and routing numbers from real businesses to counterfeit checks. Oftentimes, the scammers will go so far as to reconstruct the business’s logo in an effort to appear even more authentic. Once the check is made and the target is identified, the con artist will send a large check to the service provider and ask them to send a portion of the funds to a third party for other goods and services allegedly related to the job.

Read Also: 10 Ways To Implement Internal Controls With Limited Resources

Recently, a local entity found itself in the middle of an active scam that followed a chain of events in line with the FTC’s original warning. It was only a matter of time before officials discovered that the check and the third party were fake.

“It takes only a day or two for your bank to make the money available to you, but it can take weeks for your bank to determine a check is phony. If you already withdrew that money, you’re on the hook to pay back the bank. If you’ve already transferred the money to the third party, it’s gone – like sending cash. – read the entire FTC warning.

It turns out that the local entity’s accounting vigilance and banking relationships really paid off. Rather than releasing the requested funds identified on the check, which would then be sent off to the fake third-party, the transaction was halted when the discrepancy with the numbers was identified. Because the check number and dollar amount didn’t match any payment previously authorized and issued by the entity, the bank denied payment.

Fortunately, in this scenario, the fraudster was thwarted, the entity’s funds remained secure and the service provider’s bank account remained in the black. Others won’t be as lucky. Regardless of how confident you are that this scheme would never happen to you and your business, the following are three general best practices designed to maintain your safety against a wide variety of threats.

1)      Double Check Your Checks With Positive Pay

An anti-fraud service offered by most banks, Positive Pay will match the account number, check number and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the company. This will help the bank determine which checks are legit and which ones should be questioned. This service helps prevent your organization’s funds from being drawn from your bank account.

2)     Regularly Review Your Bank Activity

Sure the World Wide Web can be a scary place, but it’s also incredibly useful particularly when it comes to keeping tabs on your entity’s financial activity. Optimally, you should take a bit of time once a day to review your bank activity online. If you can’t monitor it that frequently, it should be a weekly goal – at least. Never, under any circumstances, wait until the end of the month to review your account. By then, it will be too late to take any meaningful action against a scam that’s already active.

3)     Maintain A Positive Relationship With Your Banker

Your banker should have a seat at your advisory team’s table. Not only are they providing you with essential service, they have top-notch advice at the ready. If you don’t already, get to know your primary point of contact. Then, make it a point to build a solid relationship with them and their team. Yeah – it’s just that important. This slideshow further illustrates the importance of business/banker relationships.

Email Rea & Associates to learn more about protecting your business, entity or organization from fraud.

By Annie Yoder, CPA, CFE, CFF (New Philadelphia office)

Check out these articles for more fraud prevention articles:

Where There’s Smoke, There’s Fire: 5 Internal Control Tips That Can Save Your Business From Fraud

Can A Cybercriminal Crack Your Company’s Network?

Could Your Company Be Ransomware’s Next Victim?

Share Button

How Will A Tax Credits and Incentives Plan Benefit Your Business?

Chad Bice | July 19th, 2016
Tax Credits & Incentives Plan | Ohio CPA Firm

Right now, there is an estimated 3,000 federal, state and local credits and incentives valued at more than $50 billion available to your business. Find out what you can do to capture a piece of the billion-dollar-pie.

If you had a chance to claim thousands of dollars, would you? Well, if you are a business owner, the opportunity is staring you right in the face. But you have to seize the opportunity sooner rather than later.

Right now, there are around 3,000 federal, state and local credits and incentives valued at more than $50 billion available to your business. These opportunities are both statutory and negotiated and include hiring credits, investment credits, real and personal property incentives, utility rate reductions and infrastructure grants – just to name a few. Unfortunately, only a relatively small number of companies are taking advantage of these opportunities. 

Read Also: The Do’s And Don’ts Of Summertime Tax Prep

So why aren’t businesses seizing these opportunities for cash flow enhancement and return on investment? Sometimes companies don’t know they exist, or they think that they are too complex to understand and the opportunities are not worth the effort. Wrong!

If you take the time to develop a credits and incentives plan, your company can capture a piece of the $50 billion pie. Here’s how!

Key Elements of a Tax Credits and Incentives Plan

  1. Outline your key opportunity indicators. Key opportunity indicators are events that your team should come to know and understand that trigger the potential for credits and incentives. They typically revolve around your people and your investment in fixed assets. On the people side, opportunity indicators often involve increases or decreases in employment, turnover, relocations and employee training or retraining. On the fixed asset side, opportunity indicators include site selection and start-up, capital investment, leases and renewals, building acquisitions, facility upgrades and so on. Make a list of these indicators and train your team to spot them. Once an opportunity is spotted, investigate further and contact your CPA to see if it might benefit your business.
  2. Understand that timing is everything. To give your business the best chance of securing a credit or incentive, you must understand that timing is everything. To secure many credits and incentives, the process of securing the opportunity happens well in advance of hiring, training or purchasing fixed assets. In many instances, if your business has hired the employee, spent money on the training or purchased the fixed asset — it is too late. Once you’ve spent the money or announced your plans to the public, you’ve lost most if not all of your ability to negotiate. Understanding this and putting a plan in place to uncover the opportunity well in advance of the investment will put you in a position for maximum success. And outlining your key opportunity indicators is the first step to realizing the potential credits and incentives available to you.
  3. Get your entire team on board. Securing maximum credit and incentive opportunities isn’t just the job of your owner, CFO or CPA. It should also be the job of your HR department, training coordinator and safety director. The more your entire team is able to understand the key opportunity indicators and that timing is everything, the greater chance of success you will have.

Tax Credit Help

If you’re looking to capitalize on these credits and incentives opportunities and would like to learn more, email Rea & Associates. The sooner you move on this, the faster you’ll be able to realize the benefits.

By Chad Bice, CPA (Zanesville office)

Related Articles

Environmentally Friendly Tax Savings

Brush Up On These New Tax Form Due Dates

School’s Out For Summer, But Tax Credits Are Still In

Share Button

Building Bridges

Lesley Mast | July 18th, 2016

Closing The Gender Gap In The Workplace

Closing Gender Gap - Ohio CPA Firm

The percentage of women in the workforce increases every year, but that’s not necessarily reflected by the percentage of women in leadership positions. Additionally, women are often being paid less to do the same job as men, despite having equal qualifications and experience. Regardless of your gender or position within the company, we all have a responsibility to help close this gap.

We’ve certainly come a long way from the old days, when women in the workforce were expected to be seen and not heard. As anyone who has ever watched an episode of “Mad Men” (or worked during that era and lived to tell about it!) can attest, the workplace was exclusively a man’s world.

But despite our progress, the gender gap in the business community continues to be a hot topic these days. Shouldn’t men and women be paid the same to do the same job? Haven’t women proven that they are just as skilled, intelligent and driven as their male counterparts? Why does a gender gap still exist, anyway?

I’d like to think that no one intentionally denies their employees equal opportunities and fair pay for any reason, including gender. But, unfortunately, it does happen – even if it’s just on a subconscious level.

An organization is only as strong as its employees. Men and women are equal and integral parts of the equation. Successful companies recognize that diverse opinions and skill sets are invaluable assets to the modern business, and they have begun to hire and promote accordingly.

The percentage of women in the workforce increases every year, but that’s not necessarily reflected by the percentage of women in leadership positions. Additionally, women are often being paid less to do the same job as men, despite having equal qualifications and experience. Regardless of your gender or position within the company, we all have a responsibility to help close this gap.

LEADERSHIP: You Hold the Keys to Change

Even if your intentions are pure, your actions may fall short. Remember, your employees are following your lead, so be sure you’re setting the proper tone at the top. For help, survey your employees to find out how you’re doing in this area. You can also take the following steps to help close the gender gap in your business:

  • Ensure that women are represented at all levels of the company, and keep them involved in management decisions.
  • Pay women equally as their male counterparts.
  • Don’t assume that a woman with family obligations isn’t up for the challenge of a promotion or increased responsibility.
  • Take time to listen to the concerns of women within your organization and foster an environment of open communication.

MEN: You Play an Important Role, Too

It’s the job of every man in the company to respect and treat their female colleagues as equals. You can do this by:

  • Becoming aware of communication differences between genders and encouraging women to participate and offer their ideas.
  • Actively working to include your female colleagues in the same way you do other men.

LADIES: Support One Another

Women in leadership positions have a unique opportunity to support other females in the organization, both by serving as mentors and acting as “spokeswomen” for gender issues with upper management. Additionally,
women can:

  • Organize and participate in groups that address common issues women face in the workplace.
  • Be visible. Make sure company leadership sees your work ethic and initiative, and ensure your opinions are heard.
  • Find ways to connect with your male colleagues.

Men and women bring different yet equally valuable perspectives to the workplace, and all contributions should be respected. We’re on the same team, working toward the same goal — let’s ensure we always act accordingly.

By Lesley Mast, CPA, MAcc-Taxation (Wooster office)

Want more insight into this topic?

Check out Lesley’s podcast episode, “girls & glass ceilings: the gender gap,” on unsuitable on Rea Radio. You can listen to the podcast on iTunes, SoundCloud and at www.reacpa.com/episode-20.

Share Button

What’s Hotter Than Summertime Tax Prep?!

Dear Drebit | July 12th, 2016

You don’t have to answer that. And also don’t be fooled into believing the the famous Porgy and Bess lyric: “Summertime and the living is easy.”  In fact, can we all just agree that summer can be just as hectic (if not more so) as the other three seasons. But in your hurry to balance kids, vacation planning and your other daily responsibilities, try to make time get your finances in order and prepare for the upcoming tax season.

No, we are not delirious from too much sun. Summertime tax prep can actually save you a ton of work later on while effectively easing your tax burden. Don’t believe me? Here are four posts that might make summertime living a little less stressful!

  1. The Do’s and Don’ts of Summertime Tax Prep: Frankly, who has time to think about itemized deductions and tax-free distributions when you would rather be grilling out, soaking in the sun, or enjoying your family vacation? But now is a great time to look at your taxes and make necessary adjustments to effectively sidestep any potential problems that might cause problems when tax season does arrive.
  2. School’s Out For Summer, But Tax Credits Are Still In: Summer is an exciting time for families. It’s a time to get outside and have fun hanging out by the pool or to catch fireflies in a jar at the end of a long day. For many parents though, the summer holiday is overshadowed by the need to find affordable childcare during your work hours. The good news is that your opportunity to claim the Child and Dependent Care Tax Credit doesn’t end at the last day of school.
  3. Does Your Vacation Home Provide Tax Relief? Oftentimes, successful business owners choose to acquire real estate, which serves as a tangible representation of their success. For many, the prospect of buying a second home is a desirable investment, not just because it’s useful, but because it can bring added tax benefits.
  4. Business Travel or Personal Vacation? So you decided to attend that business convention in California over the summer and are rounding up your expenses to turn in to your tax preparer. Oh, you decided to take the entire family along? Here’s a quick guide to help you determine what is a tax deduction and what is not.

Contact the tax team at Rea & Associates for even more tips to help you ease your tax burden all year long.

Share Button

Escape The Summertime Lull Will Expert Business Advice

Dear Drebit | July 5th, 2016

Top 5 Blog Posts In June

Just because the temperatures are higher and the days are longer doesn’t mean the team at Rea & Associates is taking a break from providing you with the latest financial and business advice.

In June we brought you tips about tax savings, advice on starting your own business, standing out against your competition and so much more. But which blog posts tickled your fancy? The following posts had more clicks than there were fireflies flitting across an open meadow during the summer solstice. Which post was your favorite?

  1. How To Become A Millionaire: The odds of winning Powerball are 1 in 292 million. The odds of winning Mega Millions are 1 in 259 million. The odds of winning Ohio’s Classic Lotto are 1 in 14 million. But if you were to invest the money you would normally spend the lottery into a 401(k) plan, your chances of winning big are all but guaranteed! Keep reading to learn how.
  2. How Are You Different From The Competition?: You have the opportunity to go above and beyond the call of duty every time you engage with a client. And don’t think that your superior work and insight will go unnoticed! Click here to find out why.
  3. Looking to Start a Business? Do It the Right Way: Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice found in this post and you’ll be well on your way to a successful start.
  4. How Can You Track Use Tax in QuickBooks?:  Now that you have filed for use tax amnesty and are all set up with an account, how are you going to track it daily going forward? If you use QuickBooks, the answer is as simple as 1-2-3.
  5. Do You Know The Best Way To Buy A Business?:  Generally speaking, relationships are easier to develop and maintain when you work with the other person. The same is true in business, especially when you’re considering the relationship between a business owner and an advisor.

Do you have a question for our team of business experts? Is there a topic you are just dying to learn more about? Send me a message and put the Rea team to work helping you take control of your success this summer!

Share Button

Work or Pleasure?

Maribeth Wright | June 30th, 2016

Make Traveling for Charity Part Of Your Summertime Tax Savings Strategy

Travelling for Charity - Ohio CPA Firm

Transportation to and from the job site via plane, train or automobile are deductible on your next tax return if you will be volunteering your time and talents this summer. This includes any transportation costs accrued for travel between the airport or train station and your hotel. Read on to learn more!

In addition to planning a fun family get-away this summer, you might want to carve out some time to donate your services to a noble cause as well. For all of you summertime volunteers, listen up and make plans to use some of your travel expenses to help lower your tax bill. Here’s how.

Read Also: Can My Summer Daycare Expenses Earn A Tax Credit?

  • Make sure you are volunteering your services to qualified charities. If you want to deduct your expenses, the IRS needs to know that the charity you are working with is legit. There are several great online resources that can help you determine if the organization you are helping out is qualified. The IRS’s EO Select Check tool and Guidestar are two of my favorites.
  • Track all out-of-pocket expenses. If you are making necessary purchases that are not directly connected with the services you are performing and are not considered personal living or family expenses; and these expenses were directly result of the volunteerism opportunity, then you may be able take a deduction on your tax return. Keep in mind that you also can’t receive reimbursement by any other means. The ability to deduct out-of-pocket expenses, particularly travel expenses, has huge savings implications. Some of the types of expenses you can deduct include:
    • Lodging
    • Meals
    • Transportation to and from the job site via plane, train or automobile. This includes any transportation costs accrued for travel between the airport or train station and your hotel.
  • Roll up your sleeves and make a big impact. If you are only tagging along or if your duties are minimal, you are not going to be able to make a claim on your tax return. According to the IRS, your charity work must be “real and substantial throughout the trip.” In other words, don’t dillydally!

Now that you know what to do to, let’s take a look at what not to do – or rather, what is not tax deductible.

  • Travel expenses for tagalongs are not deductible. Meaning, only the expenses for the individual(s) volunteering their services can be written off at tax time. For example, if you decided to take your children along on the trip but they will not be logging volunteer hours, you cannot deduct their portion of the travel expenses.
  • Your time and services are valuable, but you can’t deduct the value of your time and services. This is particularly true for those who are donating professional services, including medical, financial and legal. You also can’t deduct the income you may have lost while you were working as an unpaid volunteer for a qualified charity.
  • You cannot package work and play into a single deductible expense. That’s not to say that you can’t enjoy yourself or go out to the beach after a long day of building schools in a third-world country; but if a significant part of your trip is reserved solely for recreational purposes or a vacation, your claim will be denied.

For more information about potential summertime tax savings, email Rea & Associates. You may be surprised by how much you can save when you’re on a mission to do work for those in need!

By Maribeth Wright, CPA (Cambridge office)

Check out these articles for more summertime tax strategies:

School’s Out For Summer, But Tax Credits Are Still In

The Do’s And Don’ts Of Summertime Tax Prep

How To Become A Millionaire

Share Button

Brush Up On These New Tax Form Due Dates

Lisa Beamer | June 29th, 2016
Tax Form Due Dates - Ohio CPA Firm

Want a tip to help you stay out of trouble with the IRS? Start studying up on the new tax form due dates.

Did you know that the IRS has changed the due dates for many of your tax return forms? These changes will be effective for taxable years starting after Dec. 31, 2015, meaning your 2016 tax returns filed next year (2017) will be impacted. Since some due dates have been altered quite a bit and others have not even been touched, it’s incredibly important to pay attention to the changes.

Read Also: Join The Fight Against Identity Theft & Income Tax Fraud

Stay out of trouble with the IRS. Start studying up on the new tax form due dates, below.

  • Form 1065 pertaining to partnerships operating on a calendar year are now due March 15. A six-month extension from that date is allowable. Previously, the due date was April 15. According to the new law, partnership returns are now due on the 15th day of the third month after the year end.
  • Form 1041, which refers to trust and estate taxes, gained a 5½-month extension from the original filing date of April 15. This was an increase of half a month.
  • Your 2016 C Corp tax returns for returns that impact businesses with traditional Dec. 31 and June 30 year-end deadlines will be due on the 15th of the fourth month after the year end. A six-month extension from that date will be allowed.

o   If your year-end is before Jan. 1, 2016, your due date is April 15, with a Sept. 15, extension.

o   If your year-end is after Dec. 31, 2015, your new due date is April 15 with an Oct. 15, extension.

  • For C Corps operating outside a traditional fiscal year end (with fiscal years other than Dec. 31 and June 30), the new due date for your tax return forms is the 15th day of the 4th month after year end and the 15th day of the 10th month after year end.
  • A special rule for C Corps with a June 30 fiscal year end was established and will impact the due date for Form 1120. The new due date will go into effect for returns with taxable years beginning after Dec. 31, 2015 for the 2017 filing season.

o   Before Jan. 1, 2016, Form 1120 is due Sept. 15 with an April 15 extension.

o   After Dec. 31, 2015, the due date for this form is Oct. 15. The April 15 extension date will not change.

  • For exempt organizations required to file Form 990, the new extension date becomes a single, automatic 6-month extension. This eliminates the need to process the current first 90-day extension.
  • Those filing the Foreign Bank and Financial Accounts Report (FBAR) will have to adhere to a new April 15 due date. An Oct. 15 extension date was also established. This report was previously due on June 30.
  • All W-2 and certain 1099-MISC forms are now due to the IRS/SSA no later than Jan. 31, which is the same day they are due to the taxpayer. All other Forms 1099 are due Feb. 28 or, if filed electronically, March 31. This is a change from the Feb. 28 due date (and March 31 date if filed electronically) for all W-2 and 1099 forms that was previously enforced.

For all the changes outlined above, there are a few rules that will remain unchanged. Below are four due dates that will not change in 2017.

  • Form 1120S – These forms are due on March 15 with a six-month extension from the due date.
  • Form 1040 – The individual tax form will continue to be due on April 15 with an Oct. 15 extension date.
  • The due date for Form 5500, concerning employee benefit plans, will not change as a federal law that was enacted in December 2015 effectively repealed a previously enacted extension. These forms are due on July 31 with an Oct. 15 extension due date.
  • Form 3520-A for foreign trusts with a U.S. owner will not be changing. These forms will continue to be due on March 15 with a Sept. 15 extension due date.

Check with your tax advisor to find out if you will be ready to comply with these changes and to ask any tax planning questions you might have. Believe it or not, tax season is closer than you think. Be a proactive business owner. With enough lead time, you can implement a tax savings strategy capable of delivering amazing results. Email Rea & Associates to learn more.

By Lisa Beamer, CPA (New Philadelphia office)

Are you looking for more tax insight? Check out these articles?

Can The IRS Collect Back Taxes 10-Years After The Organization?

Environmentally Friendly Tax Savings

Don’t Miss Out! Claim The Work Opportunity Tax Credit

Share Button

Looking to Start a Business? Do It the Right Way

Lesley Mast | June 20th, 2016
Starting new Ohio Business - Ohio CPA Firm

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice found in this post and you’ll be well on your way to a successful start.

Starting your own business and becoming a small business owner is part of many Americans’ dreams. For some though, it can become a nightmare. There are definitely some right ways and wrong ways to approach starting your own business. Over my tenure as an experienced business advisor, I have seen plenty of heartache and additional expense along the way. Here are some of Do’s and Don’ts to consider if you want to start your own business:

Read Also: Dream Big: Considerations For The Aspiring Business Owner

  • Do: Go simple – Unless someone besides your spouse will own the business with you, you don’t need anything other than a simple limited liability company. It offers you liability protection while minimizing your tax filing requirements. Being the sole owner and having this sort of entity allows you to file you business’s activity on a Schedule C on your Form 1040. Until the business grows and is successful, this entity type will likely be sufficient for your small start-up.
  • Don’t: Go cheap – Small business owners tend to think they can or should do everything themselves. A lot of sweat equity goes into starting a new business, but be smart and humble enough to know the difference between what you can do and what you should do. It’s OK to ask for help!
  • Do: Involve professionals – This is an area where new business owners tend to want to go cheap. No one likes paying attorneys and folks don’t know they need a tax professional sometimes until it’s too late. Getting set up with the proper legal documents is a critical first step, and it’s one that new business owners like to try to tackle on their own. I know from experience that a good attorney is worth the expense. Don’t know who to ask? Start asking other established business owners who they use.
  • Don’t: Do payroll yourself (unless you have experience) – Some of the heftiest penalties the IRS assesses involves payroll taxes. They don’t mess around when it comes to properly assessing and remitting payroll taxes and paying your employees. Even one slip up can set a business back several thousand dollars. The issues continue to compound if they are not properly taken care of, so don’t ignore this extremely important aspect of your business. Unless you have prior experience with payroll or you hire someone with experience, this is an area where you should seek professional help.
  • Do: Consult your local Chamber of Commerce – Chambers of Commerce exist to assist businesses in a multitude of ways. Our local Chamber offers Small Business Counseling classes that are meant for new business owners who are just starting up a business. These classes include counseling, training and assistance for start-up businesses. This local resource can be invaluable if you choose to utilize it.

Starting a new business is a brave and exciting endeavor. Avoid common slip-ups by following the advice above and you’ll be well on your way to a successful start.

Around the same time you start your business, you’ll also want to consider your business’s growth strategy. Lee Beall, CPA, CEO at Rea & Associates, covered this topic in a podcast episode on unsuitable on Rea Radio. Check it out to learn what you need to do to establish or strengthen your business’s strategic plan.

By Lesley Mast, CPA, MAcc – Taxation (Wooster office)

Share Button

How Are You Different From The Competition?

Katie Snyder | June 8th, 2016
Competitive Advantage - Ohio CPA Firm

Every time I climb into my stylist’s chair my hair is trimmed – regardless of its condition. This helps maintain a fresh look while preventing additional breakage. It also gives her an opportunity to assess the state of my hair and make recommendations to help keep it looking its best! From helping a client monitor their cash flow to updating a buy-sell agreement, a lot of preventive maintenance can be done at a regular meeting with your financial advisor, too. You never know when a simple lunch meeting could reveal an underlying problem that, if left to fester, could be damaging to your business.

Superior Service Doesn’t Have To Be Hairy Business

You have the opportunity to go above and beyond the call of duty every time you engage with a client. And don’t think that your superior work and insight will go unnoticed! Before long, you will find that they will go out of their way in search of your insight and advice. Regardless of your profession, the potential is there for you to become a trusted advisor. We strive to reach this standard here at Rea, but I know of others who I would consider to be trusted advisors in a variety of other professions.

My Hair Stylist Is A Trusted Advisor

After attending my last meeting of the day, I gathered my things, left the conference room, walked to my car and sat down in the driver’s seat ready to depart for my regularly scheduled hair appointment. As I turned the engine, I started thinking the meeting I just left, during which we spent a lot of time discussing the succession plan of an existing client and what we could do to deliver the best experience (and outcome) possible. Then my thoughts drifted to the task at hand – my hair appointment and how I truly consider Aaren, my stylist, to be a trusted advisor in my life. Here’s why:

Superior Efficiency

Before busy season starts (January-April in our industry) Aaren will style my hair in a way that helps facilitate a faster dry time each morning. Being the numbers addict I am I have estimated that I can save about 6.5 hours if I opt for a shorter hairstyle. This is similar to how Rea is dedicated to delivering superior efficiency. For example, we have integrated Lean Six Sigma into our culture as a means to deliver efficient, cost effective service. We use it. We know it works. And we have helped other businesses implement their own Lean initiatives as well.

The Best Ideas You Weren’t Expecting

Not only does Aaren understand how to encourage her clients how to care for their hair during the best of times, she’s mindful of changes that could occur as a result of environmental factors and makes recommendations accordingly. This is what happened when I told her I was going on vacation to the ocean. This seemingly casual conversation revealed an opportunity to warn me about the dangers of saltwater on hair; she recommended a product to help prevent damage while I was on vacation. The great thing about developing a relationship with a trusted advisor is that they genuinely care! Are your children gearing up for graduation? Are you eyeballing retirement? Are you looking to invest in a summer home? A trusted advisor might be able to help you seize an opportunity that you would otherwise miss.

Sound Advice In Advance

I have found that Aaren is most effective when I keep her in the loop. I let her know when I have a vacation or a wedding many months in advance. This way she can help me get the results I want without unpleasant side effects. For example, rather than dye my hair right before a major wedding that was taking place in our family, Aaren encouraged me to change the color over a six-month period. By making the changes gradually and planned out we were to prevent my hair becoming damaged due to the chemicals.

Your advisors are also most effective when they are able to get in front of an issue. For example, if a client wanted to pass their business on to the next generation, an advisor could help you identify your succession plan, help you prepare for the changeover, identify financing solutions for your own retirement and help establish a cash flow strategy for the incoming management.

Preventive Maintenance

Every time I climb into Aaren’s chair my hair is trimmed – regardless of its condition. This helps maintain a fresh look while preventing additional breakage. It also gives her an opportunity to assess the state of my hair and make recommendations to help keep it looking its best! From helping a client monitor their cash flow to updating a buy-sell agreement, a lot of preventive maintenance can be done at a regular meeting with your financial advisor, too. You never know when a simple lunch meeting could reveal an underlying problem that, if left to fester, could be damaging to your business.

When it comes to the management of my hair, Aaren is a trusted advisor. She continues to demonstrate her expertise and always goes above and beyond my expectations, which is why I will drive two hours to keep my hair appointments!

What do you do to set yourself apart from the competition? Why would a client drive two hours to buy your products or services? How can you be a trusted advisor to the clients you serve? Mike Taylor, a CPA and executive principal here at Rea, did a great job talking about the advisory role on an episode of unsuitable on Rea Radio. You can listen to the podcast below or click here to learn more about this particular episode. You can also email Rea & Associates to speak with one of our industry professionals to find out how you can take your business to the next level.

By Katie Snyder, CPA (Wooster office)

Check out these articles for additional insight into the benefits of working with a trusted advisor:

Getting By With A Little Help From Your Friends

5 Financial Secrets Of Successful Business Owners

This Is An Intervention – Step Away From Your Business

Share Button

Do You Know The Best Way To Buy A Business?

Ryan Dumermuth | June 2nd, 2016
Business Acquistions - Ohio CPA Firm

Ryan Dumermuth, principal at Rea & Associates, and Kirk Spillman, president and CEO of Eagle Machinery in Sugarcreek, Ohio, join Mark Van Benschoten on episode 34 of unsuitable on Rea Radio.

Generally speaking, relationships are easier to develop and maintain when you work with the other person. The same is true in business, especially when you’re considering the relationship between a business owner and an advisor. I had a chance to be a guest on an episode of unsuitable on Rea Radio with Kirk Spillman, president and CEO of Eagle Machinery, a manufacturing company located in Sugarcreek, Ohio, to talk about what goes into developing a strong business advisory relationship – particularly when buying a business. Bottom line, a successful relationship with your advisor goes far beyond any monetary transaction; it’s rooted in mutual trust and respect. And, if nurtured, a relationship with your advisor can last a lifetime and can help drive long-term business success.


Listen to episode 34: the best way to buy a business, build a relationship that matters, on unsuitable on Rea Radio, Rea & Associates’ financial services and business advisory podcast.


How Well Do They Know Business & Can You Trust Them?

Before you decide who you should work with from an advisory perspective, you need to consider what kind of assistance you’re looking for. Remember that while it’s not always necessary for your advisor to have expertise specific to your industry (although that is undoubtedly helpful), it is critical for your advisor to be a business expert who can effortlessly apply general business tactics, strategies and best practices to address your specific needs and drive results. Don’t miss out on an opportunity to work with the best advisor in the market simply because they don’t market themselves as an expert in construction or healthcare. Call them up and get to know them before making a decision. Your choice should ultimately hinge on the advisor’s business prowess and out-of-the-box thinking.

When You Don’t Know, Ask An Advisor

We hear a lot about the importance of bringing an advisor on to assist with succession, but there are important considerations an advisor should be privy to when buying a business as well. Over the course of my career, I’ve learned that a person looking to buy a business needs just as much help, if not more, than the tenured business owner seeking to embark on retirement.

Those who are new to business ownership are trying to overcome a variety of obstacles, not to mention the difficulty associated with managing a smaller budget. And while it may not seem to make much sense to “splurge” on advice from a professional business consultant when there are other bills to be paid, the best way to navigate this unknown territory is to turn to a trusted advisor who has seen the situation you are facing.

“I learned very quickly how much I did not know about business,” said Kirk, during the podcast. “I thought I knew enough about operations and customer service and marketing all of those things that I could just step into this business and be very successful. [Before long] I recognized that there were going to be things that I would need that I didn’t have experience or resources for … [like] the entity itself. How do we set this entity up? I knew nothing about that.”

Your business advisor will be able to shine light on the areas you know nothing about, such as how to structure your business entity, how to determine the true value of the business, setting up payroll, managing inventory, etc. There’s a lot of risk involved in buying a business because, particularly for owners who are new to entrepreneurship, there are so many unknowns. Your team of advisors will help take the guess work out of business ownership.

I invite you to learn a little bit more about Kirk’s experience and to learn how a business advisor can help you establish, manage and grow your business until you decide it’s time for you to move on. Click on the media player below or visit www.reacpa.com/podcast to learn more about the best way to buy a business.

By Ryan Dumermuth, CPA, CFP (Mentor office)

Want to learn more tips to help you succeed in business, check out the following articles for additional insight.

Dream Big: Considerations For The Aspiring Business Owner

So You Want To Buy A Business: Now What

Getting By With A Little Help From Your Friends

Share Button