Archive for July, 2016

Business Podcast Heats Up In July

Thursday, July 28th, 2016

Regular listeners of unsuitable on Rea Radio already know that the summertime lull had no effect on the show’s quality. July has been an entertaining and informative the month for the Rea & Associates’ podcast. From discussing the many reasons American consumers should support locally-owned businesses (Self-Reliance: Made in America) to this week’s episode about cybersecurity concerns, (The Hacked & The Hacked Nots) featuring Rea’s own Joe Welker, CISA. Listeners also got a spoonful of crisis communication advice and insight from Denny Lynch, Wendy’s former senior vice president of communications (The Infamous “Finger In The Chili” Incident) and then learned that LLC’s, C-Corps and S-Corps were not created to be equal in the world of entity structure (Maximize Your Equity: Maintain The Right Business Entity) form Gene Spittle, CPA, PFS, CGMA. In short, there was literally something for everybody to listen to and enjoy.

Want to hear what you’ve been missing? Check out this month’s episodes below.

Happy listening!

Episode 38: Self-Reliance: Made In America

Long days, vacations, barbecues, baseball … what’s not to enjoy about summer?! It’s also the time of year when we celebrate what it means to pursue the American dream. And, for many, this dream materializes in entrepreneurship and, going a step further, buying American-made products as a way to support a strong domestic economy. Kyle Stemple, CPA, CGMA, principal and director of manufacturing services at Rea & Associates, talks about the value of “buying American,” and the direct impact consumers have on America’s marketplace and the quality, customer service and product support we receive from domestically-run businesses.

Episode 39: The Infamous ‘Finger In The Chili’ Incident

Remember the time America began checking their Wendy’s chili for rogue fingers? Denny Lynch does. As the senior vice president of communications at the time of the crisis, Denny and his team was not only responsible for helping disprove the claim, but to maintain the brand’s image and reputation as one of the nation’s premier fast food restaurant brands. On episode 39, “the infamous ‘finger in the chili’ incident,” Denny and Mark discuss crisis communications and why clear, consistent internal and external communication strategies are critical when businesses have to protect their brands from unforeseen crisis situations.

Episode 40: Maximize Your Equity: Maintain The Right Business Entity

How much thought did you put into how your business would be structured. Did you consider whether economic conditions would be more favorable if your company operated as a LLC (Limited Liability Company), C Corp or S Corp? Were the tax implications weighing heavily on your mind as you wrestled with this important decision? Your business’s structure is not a decision to be taken lightly and Gene Spittle, CPA, PFS, CGMA, a principal at Rea & Associates, will tell you why on this episode of unsuitable on Rea Radio.

Episode 41: The Hacked & The Hacked Nots

Lack of cybersecurity training has left companies nationwide vulnerable to the ever-growing and constantly changing threat of cybercrime. On episode 41 “The Hacked & Hacked Nots,” we learn why many companies are incorporating third-party software to monitor and protect their firewalls to determine which sites are safe and which ones should be avoided at all costs to help protect you from cybercriminals. Joe “Captain Data” Welker, CISA, Rea & Associates’ IT Audit Manager, joins us once again to give listeners some valuable insight into current cyber hacking and internet threats and what we can do to keep ourselves, and our businesses, safe. You are not gonna want to miss this episode!

If you like what you hear, subscribe to unsuitable on Rea Radio on SoundCloud or iTunes or sign up to receive weekly email alerts when new episodes drop.

Share Button

Did Fraudsters Counterfeit Your Organization’s Checks?

Wednesday, July 20th, 2016

Scam Hurts Professional Caregivers, Businesses

Check Fraud - 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?

Tuesday, 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

Monday, 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?!

Tuesday, 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

Tuesday, 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