Archive for the ‘Business Advice’ Category

Last Minute Tax Tips, Financial Stress and Cybercriminals …

Monday, May 2nd, 2016

April’s Top Posts Had Readers On Edge

So our month was pretty intense … how was yours? The good news is that we made it through another tax season, the bad news is that business owners are clearly still on high alert due to continuous influx of hacker activity. Take a look at our top five blog posts in April for some useful tips and insight you can use all year long.

Top 5 Blog Posts For Business Owners In April

  1. Can A Cybercriminal Crack Your Company’s Network? Small and midsize businesses are not immune to becoming the target of a crippling cyberattack and without the proper procedures in place business owners risk the very real threat of a large-scale assault on their company’s data. Would you be able to recover if your organization was attacked?
  2. How Flexible Is Your Company’s Management Style? Never before has the American business owner had to manage a workforce consisting of employees whose ages span five generations. And because each generation is unique, your company’s leadership team is left with the impossible task of adopting a management style to accommodate an incredibly diverse workforce. Keeping reading to learn more.
  3. What Tax Liabilities Accompany Inherited Real Estate? So you just inherited some real estate. You’re probably now wondering – is this a blessing or a curse? From the tax perspective, of course. And that’s a good question to ask. Just because you inherit something doesn’t mean that you’re free and clear of any potential tax liabilities. Depending on how you use the property and if you sell it will determine if you have a taxable situation. So here’s what you should know about taxes and inherited real estate. Read on to learn more.
  4. Increased Financial Stress Hurts Your Company’s Bottom Line Earlier this month, in a proclamation that reiterated the importance of equipping everybody with the “knowledge and protections necessary to secure a stable financial future for themselves and their families,” President Obama declared April to be National Financial Capability Month. While the timing of the proclamation makes this a great time to raise general awareness about the importance of financial fitness, businesses have a great opportunity to educate their employees about the importance of financial wellness all year long.
  5. 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.

April was great, but we are excited to see what May brings. More tips for business success? More financial news and updates? Personal finance advice? Of course! Stay tuned.

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Celebrate Six Years’ Worth Of Business Tips With Drebit

Thursday, April 28th, 2016
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Today Drebit is turning six! Check out his top posts from over the years.

Drebit turns six today and we couldn’t be more excited. Over the years the Rea team has helped this intuitive frog provide readers with a wide variety of helpful business tips designed to help drive results in your organization as well as current business and financial news and we have certainly enjoyed the journey! This birthday isn’t about Drebit, it’s about you, our readers, for spending a few minutes with us each week or for checking in for answers that will help you confront a challenge facing your business. You are the reason Drebit continues today!

To celebrate, we are going to list Dear Drebit’s top six blog posts. Which one did you find to be the most useful? Let us know in the comment section!

Drebit’s Top 6 Blog Posts

  1. How Far Back Can The IRS Go For Tax Auditing? Taxes can be scary word and accountants are often asked, “How far back can the IRS audit tax returns?” Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax. Keep reading to learn what those limitations are.
  2. How will selling a house from an estate impact my taxes? My mother passed away Oct. 30, 2009. She left my brother and me her house, which has just been released from probate court. We have someone wanting to buy it and we would split around $140,000. What kind of taxes do we face? Find out the answer in this blog post.
  3. Theft Safeguards To Cause Tax Return Delays In Ohio If time is money then the new security measures to protect Ohio taxpayer’s returns and prevent identity theft comes at a price. The Ohio Department of Taxation (ODT) said that in an effort to boost security and prevent tax-fraud in the state, Ohio will implement an “up-front filter to all tax-refund requests to analyze the demographic information reported on the return.”
  4. Do You Need to Send an Annual Notice to Your 401k Participants? If your company sponsors a calendar year 401k plan, don’t forget about participant notice requirements. They must be furnished by Dec.1, and may impact the operation or qualification of your plan. Here is a checklist that may be helpful, but check with us if you are not certain which of these requirements apply to your plan.
  5. What Happens if My 401(k) Plan is Out of Compliance with an IRS or DOL Rule? In this article we will explain the statute of limitations if your 401(k) plan is out of compliance with an IRS or DOL rule and how you can work to rectify any issues you may have with your business’s retirement plan.
  6. 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.

Is there a financial or business question you need the answer to? Let us know by contacting the Rea team today! We would love to answer it!

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How Flexible Is Your Company’s Management Style?

Monday, April 25th, 2016
Multi-Generational Workforce | Management Style | Ohio CPA Firm

Are you able to successfully manage a multi-generational workforce? Read on to find out why you may need to adjust your management style to achieve optimal productivity and general sustainability of your business.

Never before has the American business owner had to manage a workforce consisting of employees whose ages span five generations. And because each generation is unique, your company’s leadership team is left with the impossible task of adopting a management style to accommodate an incredibly diverse workforce.

Listen To: Mastering The Un-Manageable Magic Of Millennials

Today, an effective management team is required to be fluent in a traditional management style to accommodate the Baby Boomers while adopting an effective hands-off approach to appease the up-and-coming Millennials and a variety of other techniques to motivate and inspire the workers who fall somewhere in the generational middle ground. AND all of this has to be done effortlessly. …

You’re probably wondering if all this extra work to understand the generational differences of today’s workforce even really matters. If so, worry no longer – it does matter, a lot. Here’s why:

Marketplace Competition

The marketplace is changing and in order for your business to stay competitive, you have to be fast and agile. Who knows how to do this better than the Millennials? When I was growing up, if I wanted to make a purchase, I had to drive to the store and browse the aisles before making a purchase. Today, all the consumer has to do is pull out the smartphone, browse the products, read reviews and buy the product – and this whole transaction happens very, very quickly.

Employee Retention

A lot of businesses are having a real problem when it comes to employee retention. Companies that are not willing to adjust to their employee’s needs are going to have a difficult time retaining them for a significant period of time. Rather than try to fit a square peg into a round hole, your business might have more luck keeping that star employee around if you were to adopt a different management style. Otherwise, be prepared for the company rock star to look for employment elsewhere.

Improved Productivity

Millennials have already changed the way business is conducted in America, and we’re only getting started. One of the most extreme changes we have seen centers around the productivity of the younger generation. A lot of times we will hear that they are unwilling to get to work at 8 a.m. or that, when they do get to work, they are rarely focused on just one task. To the older generations, this can be frustrating because it flies in the face of the traditional workstyle. However, when the business can harness the unique skills and dedication of the younger generations, business owners are bound to see the productivity of these employees significantly improve.

I talk a lot about how businesses can make since of an increasingly diverse workforce on episode 29 of unsuitable on Rea Radio. You can listen to the episode, Mastering the Un-Manageable Magic of Millennials” by clicking play on the media player below, or you can visit the episode’s webpage to listen and tap into some other great resources to help you along. And, of course, you can always email Rea & Associates for even more, specific tips and insight.

By Pat Porter (Dublin office)

Are you looking for some more HR insight to help your business? Check out these articles for some helpful advice:

No People, No Growth

Fully Staffed & Operational: How To Master Your Employee Recruitment Strategy

Can You Afford To Lose Them?

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Increased Financial Stress Hurts Your Company’s Bottom Line

Thursday, April 21st, 2016
Financial Stress | Business Problem | Ohio CPA Firm

There is a clear correlation between an employee’s stress rate due to financial hardship and reduced productivity, higher healthcare costs, increased risk of occupational fraud and lower retirement readiness. Read on to find out what you can do to help promote financial wellness in your business.

Earlier this month, in a proclamation that reiterated the importance of equipping everybody with the “knowledge and protections necessary to secure a stable financial future for themselves and their families,” President Obama declared April to be National Financial Capability Month. While the timing of the proclamation makes this a great time to raise general awareness about the importance of financial fitness, businesses have a great opportunity to educate their employees about the importance of financial wellness all year long.

Read Also: Why Do They Turn Down Free Money?!

According to PwC US’s 2016 Employee Financial Wellness Survey, 52 percent of respondents said they are stressed about their finances, while 45 percent noted an increase in their stress rate over the last 12 months. After further analysis, researchers determined that the primary cause of the stress is rooted in their inability to deal with unforeseen expenses, such as automobile or home repairs. Combined with the pressure to navigate the growing cost of higher education and the responsibility to saving for retirement, you have the makings for a perfect stress storm.

It’s pretty clear that it’s never been more important to understand the implications positive spending habits have on the wellbeing of our employees. Particularly among millennials, as the PwC study noted that the stress level of this generational group was dramatically worse than the others due to the increased level of student debt felt by this age group.

Furthermore, there is a clear correlation between an employee’s stress rate due to financial hardship and reduced productivity, higher healthcare costs, increased risk of occupational fraud and lower retirement readiness. Even in this recent study, as reported by Accounting Today, 79 percent of millennials in the workforce say “their student loans have a moderate or significant impact on their ability to meet their other financial goals.”

Employers are in a position to make financial wellness a priority before the stress workers are feeling has a chance to boil over and impact the company’s bottom line. Similar to the information and incentives your company provides with regard to wellness programs aimed at improving employee health, financial wellness programs are available to employers who are willing to step in and help their employees achieve greater financial success. Some methods are free and some have costs associated with them, but regardless of what you choose, the most effective programs are those that take a more holistic approach.

Darlene Finzer, CPA, QKA, CSA, a principal and director of benefit plan audit services at Rea & Associates spoke about financial wellness on episode 19 of unsuitable on Rea Radio. The episode, called “It Starts with a Penny,” does a great job explaining the importance of financial wellness, the risks employers should be aware of that could result from high levels of financial stress and solutions to help get your workforce on the right track. You can listen to the episode in the media player below or click here to access the episode, financial calculators and additional resources.

By Kimberly Veal, CPA (Lima office)

Check out these articles for more insight into the issues of financial wellness and retirement readiness.

Americans Falling Short On Retirement Savings

Debt vs. Taxes: Should You Pay Off Your Loan?

Don’t Miss Your Chance To Secure Tax-Free Wealth

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Environmentally Friendly Tax Savings

Thursday, April 14th, 2016

For the last 46 years the global population has come together to channel “human energy toward environmental issues.” On April 22, 2016, the world will once again celebrate Earth Day. You can find a wealth of information on the official Earth Day website, including information about this year’s theme, Trees for the Earth. You can also find some great tips to help you become more energy efficient or help you spread the word about climate change and other topics.

Businesses Can Go Green And Save Green

For business owners, going green can result in significant tax savings as well, which can make environmental responsibility that much more desirable. Take a look at this slide show and find out how green certain eco-friendly initiatives can help strengthen your company’s bottom line.

Environmentally Friendly Tax Cuts For Business Owners from Rea & Associates

Do you want to start saving on your 2016 tax bill? Email Rea & Associates to find out how you can use environmentally friendly tax planning initiatives to ease the tax burden on your business.

By Brian Kempf, CPA (Millersburg office)

Are you looking for more tax tips? Check out these articles:

Go Green For The Planet And Pocket The Savings

Can Making Your Building Green Save On Taxes?

5 Tax Deductions To Ease Your Business’s Tax Burden

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Can A Cybercriminal Crack Your Company’s Network?

Tuesday, April 5th, 2016
Ransomware Attack | Cybercriminals Target Businesses | Ohio CPA Firm

Ransomware has become a formidable threat to businesses of all sizes, yet I have worked with quite a few business owners who are unfamiliar with the term. This is particularly unnerving as a Ransomware attack can be catastrophic to the financial stability of your business. Read on for tips to help you prevent a Ransomware attack from taking down your business.

Small and midsize businesses are not immune to becoming the target of a crippling cyberattack and without the proper procedures in place business owners risk the very real threat of a large-scale assault on their company’s data. Would you be able to recover if your organization was attacked?

Instances of cybercrime have reached an all-time high and ensuring that your company has the procedures in place to guard against an army of determined fraudsters is more important than ever. But before you can implement effective controls, you must have a clear understanding of what it is that threatens your business.

Know Your Enemy

Ransomware has become a formidable threat to businesses of all sizes, yet I have worked with quite a few business owners who are unfamiliar with the term. This is particularly unnerving as a Ransomware attack can be catastrophic to the financial stability of your business.

Read Also: Could Your Company Be Ransomware’s Next Victim?

Ransomware is the infection of a computer which immediately encrypts all recognizable file types. Once your network is infected, a screen appears on your monitor demanding that the company pay a ransom in exchange for the data to be “decrypted” and released. A timeframe is established by the hackers and it is made clear that if the ransom is not paid before the deadline, the organization’s data will be destroyed.

4 Tips To Help Prevent A Ransomware Attack

To protect your business against Ransomware and other similar threats:

  1.  Train your employees to identify phishing emails.
    Numerous vendors can provide your company phishing tests and video training to help educate your employees about phishing emails and ways to identify possible scams. Specifically, work to change the mindset of those within your organization when it comes to opening attachments and clicking on hyperlinks.
  2. Set employee Microsoft Active Directory rights.
    It’s unlikely that all your employees will need full-access to your company’s entire database to do their jobs. One way to protect your data is to only grant access to the data needed for employees to complete their job responsibilities. This way, if an attack does occur, the damage can be isolated.
  3. Consider implementing programs such as Microsoft “AppLocker.”
    When you implement programs like AppLocker, you require users to be assigned access to the programs they need to utilize. Again, this helps to isolate the threat which can help minimize the impact of an attack.
  4. Implement a Disaster Recovery (DR) Plan.
    Some research indicates that only about 35 percent of small- to medium-sized businesses have a working and comprehensive disaster recovery plan. We are learning time and time again just how important it is to have a plan in place to protect your business when crisis strikes. A DR plan, complete with regular plan testing and offsite backup data, will help prepare you for unforeseen events which, under current circumstances, could prove to be catastrophic. Click here to learn more about the benefits of a DR plan and how they can keep your organization and its data safe.

Guard Your Data With These Best Practices

Monitor for irregularities

If your network is infected, you can eliminate or decrease the threat of Personally Identifiable Information (such as financial records, medical information or intellectual property) from being infiltrated by utilizing an Intrusion Detection System or Security Information & Event Management application or service. These applications are designed to monitor for invalid access attempts, outgoing traffic identification and other significant alerts.

Require two-factor authentication

Many breaches are the result of access that has been granted to a third-party vendor. Oftentimes the vendor’s network will become infected and can lead to the breach of your own organization. While the data breach may not have originated within your organization, you are responsible for the inroads that were ultimately exploited by hackers to gain access into your network. A best practice is to require all vendors to utilize two-factor authentication or direct contact with your IT staff in order to gain access to your company’s network. Your networks should never be directly accessible to any outside vendor.

These tips can help you protect your organization from cybercriminals, but they only provide an initial layer of security. New threats are being developed every day and existing threats are evolving rapidly. The best thing you can do is arm yourself with knowledge and regularly test for weaknesses in your company’s armor. One day, your business will be the focus of a cyberattack. Will you be ready?

Email Rea & Associates for more information about protecting your business from cybercrime.

By Joe Welker, CISA (New Philadelphia office)

Check out these articles to learn more about Ransomware and other cyberattacks on businesses:

How Much Is Your Data Worth To Criminals?

Businesses Beware: Sloppy Data Security Could Cost You

Then & Now: Data Security In America Since The Target Breach

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Business Leaders Turned To Drebit For Fool-Proof Tax Tips

Friday, April 1st, 2016

When it comes to providing readers with top-notch tips and expert financial advice, we take our job very seriously. That’s why our top blog posts in March were related to tax, compliance and general financial wellness topics. Take a look this month’s top five blog posts for business owners.

1. Does The IRS Care About Your Fantasy Football Team?

Fantasy Football | Tax Guidance | Ohio CPA Firm

When you sit down with your CPA to go over last year’s taxable income and they ask you how your fantasy football team did this year, they aren’t just looking to engage you in casual conversation. In fact, how well (or how poorly) you did over the last year might make a difference in the size of your tax bill. Read on to learn more.

 

 

2. Payroll, HR Departments Targeted By Cyber Criminals

paper dollsOver the last few years, the threat of refund fraud and identity theft has become a very real concern, and criminals have proven that they will go to great lengths to get the information they need to complete their scams. This recent phishing scam is no exception.

 

 

 

 

3. The ACA: Small Businesses Are Also At Risk

Small Business Penalties | ACA | Ohio CPA Firm

Thinking the provisions outlined in the Affordable Care Act doesn’t apply to your business because you are “under the threshold of 50 employees” is a very dangerous assumption to make. Keep reading to find out why.

 

 

 

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

2016 individual mandate penaltiesThe IRS has finally issued guidance on how to deal with the retroactive extension of the Work Opportunity Tax Credit (WOTC) for 2015. In short, it’s an opportunity you don’t want to pass up.

 

 

 

 

 

5. Can You Afford To Lose Them?

Recruitment & Staffing Strategy | Ohio CPA Firm

When you lose a member of your team, regardless of their position, you can expect their departure to impact your organization’s bottom line. That’s why it’s so important to take a proactive stance with regard to staffing and minimizing your financial burden.

 

 

 

 

 

April brings an end to the 2016 tax season. Don’t forget that the tax deadline is April 18 this year. Looking ahead, you can expect to see some great tips from our business experts as well as some fantastic spring cleaning advice that can be used to prepare for tax season 2017. And, as always, if you have a question for one of our financial experts or business consultants fill out the Ask Drebit a Question form. We are always happy to provide you with responses to your specific questions.

Happy Spring!

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Don’t Let These Common Retirement Plan Mistakes Hurt Your Business

Monday, March 28th, 2016
Administrative Mistakes | Retirement Plan Sponsors | Ohio CPA Firm

Even data entry gurus aren’t immune to making mistakes and, as many of us are already aware, it only takes a minor slip up to cause major havoc – especially where your plan contribution records are concerned. Read on to discover some common administrative mistakes retirement plan sponsors should know about and how to avoid them moving forward.

When it comes to saving for retirement, your employees trust you to help them get their finances in order. Don’t undermine their trust by making mistakes that could have been easily avoided. Instead, take a proactive approach to the administrative responsibilities you are expected to manage. Keep reading to discover three areas retirement plan auditors are checking for mistakes and what you can do to avoid future issues.

Enrollment

Pay close attention to your plan’s eligibility requirements. The enrollment dates for some employees can get confusing. Consider the following example.

According to your plan document, in order for an employee to enroll in your company’s retirement plan, they must be at least 21-years-old and have had worked for you for at least six consecutive months. Once they have met these requirements, they can enroll during the plan’s entry dates, which fall on the first day of each quarter.

Considering this scenario, on what day will you be able to enroll “John” into your company’s retirement plan if:

  • He was hired March 17, 2016
  • His birthday is Oct. 25, 1995

While it’s true that John will meet the 6-month employment requirement on Sept. 17, he’s unable to meet the age requirement. When he turns 21 on Oct. 25, he will still have to wait until the first day of the next quarter – Jan. 1, 2017.

If an employee misses the opportunity to participate as a result of an error made by the plan sponsor, the employer is required to correct the mistake by making a corrective contribution.

This common mistake can easily be avoided as long as your business has solid processes in place to determine the appropriate for all new employees who are choosing to enter into the plan.

Contributions

Even data entry gurus aren’t immune to making mistakes and, as many of us are already aware, it only takes a minor slipup to cause major havoc – especially where your plan contribution records are concerned.

When you manually enter your employee’s retirement plan contributions, you become vulnerable to data entry errors. It’s not uncommon for a wrong keystroke to lead to deposits being made into the wrong employee’s account, for example.

Fortunately, this mistake is easily avoidable if you take steps toward automation. Ask your payroll company if they can create a file that can be easily uploaded to your retirement plan’s record keeper in an automated format and save yourself any future data entry headaches.

Compensation

It’s very important to be clear about what your plan document considers to be compensation. For example, if your plan document makes a point to reference “W-2 compensation,” you are required to withhold retirement plan funds from all regular wages, bonuses, commission, overtime, etc. This means, that if you pass out performance bonuses and neglect to withhold their 401(k) contribution, your document has failed and your business is opened to unpleasant consequences.

Fortunately, it’s not too late. Your plan document most likely offers the flexibility to make a separate plan election on bonuses. If your employee does decide to elect a portion of their bonus to the plan, ask them to document the election request for your records as well as their own.

Mistakes happen, but you can minimize the chance of making some pretty major mistakes simply by adopting a more proactive management style. The tips above will certainly help you get started. But for even more, email Rea & Associates today.

By Steve Renner, QKA (New Philadelphia office)

Get more retirement plan advice for your business. Check out these articles:

How Your Plan Design Can Help Improve Your Retirement Plan Participation

13 Fees That Can Kill Your Retirement Plans

Retirement Plan Participants Are Content To Watch Their Savings Simmer

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How To Trigger An IRS Audit

Friday, March 25th, 2016
How To Trigger An IRS Audit - Ohio CPA

When was the last time you were happy – jubilant even – after receiving a letter from the IRS ? Exactly … Keep reading to learn how to keep the tax man out of your mailbox.

Only .84 percent of the 146.9 million individual tax returns filed in 2015 were audited by the IRS. The last time the audit rate was that low it was 2004 and most of us were walking around in Uggs. And even though the IRS says it expects to see even fewer audits in 2016, your chance of being audited tends to increase when:

You fail to report all taxable income

You will be notified if the IRS notices any inconsistencies between the taxable income reported on your tax return and the combined amount reported on your 1099s and W2s. Be sure to make the issuer of your 1099 aware of any mistakes, including incorrect income reported or receiving a form that is not yours.

You own a cash-intensive business

If you operate a taxi, car wash, bar, hair salon, restaurant or any other cash-intensive business, the IRS will be watching your tax return closely. Historically, cash-intensive businesses have been less accurate in reporting all taxable income. In response, agents are using special techniques to interview business owners and audit for unreported income.

Read Also: What’s Worse: An IRS Audit Or A Root Canal?

You claim large charitable deductions

IRS agents don’t have a problem with you philanthropic behavior, it’s the people abuse this tax deduction they have a problem with. This is another area the agency has had problems with in the past, which is why agents pay special attention to these types of deductions – especially if the deduction is disproportionately large in relation to your taxable income. So, if you are going to make a gift to a nonprofit organization, make sure to do it the right way. Keep your receipts, document everything and obtain an appraisal if the donation is for property worth more than $500 (and be sure to file Form 8283 with your return). It’s also important to note that donated cars, boats and planes continue to draw special attention.

You claim home office deductions

If you can claim the home office deduction – great! However, many are often unsuccessful because they ultimately realize that they don’t meet the strict requirements. Or, if they do successfully claim it, they overstate the deduction. For this reason, this is another area the IRS tends to scrutinize. Remember, if home office space must be used exclusively and on a regular basis as your primary place of business in order to claim a percentage of the rent, real estate taxes, utilities, phone bills, insurance and other costs.

Your claim for meals, travel and entertainment is disproportionately high

This is another area where taxpayers have made excessive claims in the past, causing the IRS to look closely at meal, travel and entertainment deductions for self-employed taxpayers. When the deduction appears too large for the business, agents look for detailed documentation including the amount, place, persons attending, business purpose and nature of the discussion or meeting.

You claimed 100% business use of a vehicle

It’s very rare that a taxpayer actually uses vehicle exclusively for business, especially if no other vehicle is available for personal use. If an IRS agent sees this type of claim, they won’t just see red flags, they will hear sirens. If you are planning to claim a percentage of your vehicle usage on your tax return, be sure to keep detailed mileage logs and precise calendar entries for the purpose of every road trip.

The best way to guard against an IRS audit is to have your business and personal tax returns prepared correctly every year by a team of tax specialists. Email Rea & Associates to learn what other red flags the IRS is looking for.

By Chad Bice, CPA (Zanesville office)

Check out these articles for even more popular tax tips:

How To Make Dealing With The IRS Less Stressful

How Far Back Can The IRS Go For Tax Auditing?

A Use Tax Audit Could Cost You

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Your Secret Weapon: The Business Advisory Team

Tuesday, March 22nd, 2016
Business Advisory Podcast - Ohio CPA

On episode 25: the advisory advantage: a left-handed fireball pitcher for your business, Dave Cain, CPA, a principal at Rea & Associates, advises business owners about the benefit of having an advisory team. Start listening now.

If you have the opportunity to get great advice from a team of established business professionals and industry veterans, people who have lived, breathed, touched, and experienced the journey you are about to embark on – wouldn’t you? When you have a business advisory team to challenge and motivate you, you hold the secret weapon to long-term business value and personal and professional success.

But first you have to establish your team. Here are some tips that should help point you in the right direction.

Establishing A Core Group of Advisors

Although the makeup of the group could change or adapt depending on the needs of your business, usually the business advisory group will consist of a CPA, an attorney, a banker and a financial planner. Your advisory team has to be able and willing to have the crucial conversations necessary to facilitate real growth and change – and you need to be willing to hear all their opinions. Even if you don’t agree with some of the opinions that may be expressed, be an active participant in the conversation, sometimes these dissenting opinions will become the catalyst for achieving some major milestones.

Trust that you’ve put together a strong group of advisors with a wide range of skills and experiences needed to take your business to the next level. The journey may, at times, be a little bumpy, but if you all stick together, the destination will be worth it.

Your Business Advisory Meeting

Meeting with your business advisory team should be more than a scheduled play date. You should have a plan for how the meeting is going to flow.

Remember that this meeting is a strategic session that will focus on the tactics necessary to fulfill the goals you’ve established for your business. This is not a time to look back at you prior year’s financial statements or tax returns. This is your chance to look at the stuff that you don’t get to touch every day because you have been too busy working in your business – rather than on your business.

To ensure that your advisory team leaves the meeting with a concrete action plan, make sure to come to the meeting prepared with an agenda. To maximize your success, everybody should have a clear picture of what their next steps are and what should be able to report to the group at the next meeting.

It’s not always easy to stick to an agenda. Everybody has an opinion and new ideas will sprout from seemingly nowhere. Consider appointing an advisory team quarterback who can ensure that the meeting topics and decisions that materialize are consistent with the company’s mission statement, vision statement and core values. Your quarterback can also reel in the team when talks begin to become a little one-sided.

unsuitable on Rea Radio | Ohio Accounting Podcast | Rea & AssociatesWant more? Listen to episode 25: the advisory advantage: a left-handed fireball pitcher for your business on unsuitable on Rea Radio and find out if a business advisory team is right for you and your business.

By Dave Cain, CPA (Dublin office)

Still not sure if it makes since to establish a formal business advisory team for your company? Check out these articles for further insight.

Getting By With A Little Help From Your Friends

Is Your Business Batting A Thousand?

5 Best Practices For Taking Your Business To The Next Level

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