Posts Tagged ‘insurance’

Protect Your Business With These 6 Tips

Wednesday, February 10th, 2016
Protect Your Business - Ohio CPA Firm

Do you know that most of your net worth is tied up in your business. That means, if you don’t adequately protect it, you could stand to lose nearly everything you’ve spent your life working for. Read on for some great tips to help you protect your business.

It’s human nature to do everything we can to protect the people we love and the property we value. From drawing up legal documents to purchasing the newest safety products on the market – we are always looking for ways to protect what’s ours. Hopefully, this same mindset governs your business’s risk-management strategy as well.

Do you know that most of your net worth is tied up in your business. That means, if you don’t adequately protect it, you could stand to lose nearly everything you’ve spent your life working for.

Columbus Business First recently published my six tips to help business owners protect their most valuable asset. I encourage you to check them out here as well.

  • Draw up a buy-sell agreement.
    Why: As the last will and testament of your business, your buy-sell agreement dictates will happen if a shareholder dies, becomes incapacitated, retires or is fired from the business.
  • Secure contracts for all key employees.
    Why: What would you do if one of your key employees left and took your customers and other employees with them? Before your worse-case-scenario has a chance to materialize, address your concerns in the form of a contract.
  • Have a succession plan.
    Why: Your company’s value could take a hit if you were to unexpectedly be absent from the business. Select and train your replacement sooner rather than later.
  • Comply with government regulations.
    Why: Some violations could cost your business hundreds of thousands of dollars – or more.
  • Protect your intellectual property.
    Why: Your ideas are valuable, especially if your ideas form the foundation of your business. When you protect your intellectual property with patents, copyrights and other legal agreements, you are protecting your business’s value.
  • Secure proper insurance coverage.
    Why: Without the right coverage, a single lawsuit, accident or natural disaster could take your business’s value to zero.

Want to learn more about how a business valuation can help you grow and protect your business? Check out my website at www.knowandgrow.com. You can also follow me on Twitter for helpful business tips throughout the day.

By Tim McDaniel, CPA/ABV, ASA, CBA (Dublin office)

Are you looking for more ways to protect your business? These articles could help!

Are Your Employees Skimming From The Top?

Businesses Beware: Sloppy Data Security Could Cost You

Can Your Business Survive An Employee Exodus?

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Mileage Rates Will Be Reduced In 2016

Friday, December 18th, 2015
2016 Mileage Rates | Rea & Associates | Ohio CPA Firm

Based on a study of the fixed and variable costs associated with operating an automobile, the standard mileage rates take into consideration vehicle depreciation, insurance, repairs, maintenance, gas, etc. However, if you don’t intend on tracking your mileage, you also have the option of claiming deductions based on the actual costs of using your own vehicle rather than the standard mileage rates. Read on to find out the 2016 mileage rates.

Drivers were able to get a little more money back for every mile driven in 2015, but next year’s road map tells a different story.

The IRS announced that most of the 2016 optimal standard mileage rates would either remain the same or would be lowered going in to 2016. Among the rates seeing a decrease, were the standard mileage rates for business use of a vehicle, which were reduced to 54 cents per mile – a decrease of 3.5 cents over 2015’s rate of 57.5 cents per mile.

Read Also: 5 Tax Deductions To Ease Your Business’s Tax Burden

How Are Optimal Standard Mileage Rates Determined?

Based on a study of the fixed and variable costs associated with operating an automobile, the standard mileage rates take into consideration vehicle depreciation, insurance, repairs, maintenance, gas, etc. However, if you don’t intend on tracking your mileage, you also have the option of claiming deductions based on the actual costs of using your own vehicle rather than the standard mileage rates. Just be aware that you will not be allowed to claim both.

For example, if you have plans of claiming an accelerated depreciation on your vehicle, then you will not be able to claim the business standard mileage rate as well. If you are a business owner, you should also note that the standard rate is not available to fleet owners, or those who use more than four vehicles simultaneously. Additional details and rules can be found in Revenue Procedure 2010-51.

Different Rules For Different Road Trips

Here are some of the other common rates drivers should be aware of:

  • The miles you drive for medical or moving purposes will be calculated at 19 cents per mile driven.
  • Those driving their vehicles as a service to charitable organizations may calculate their deductions at 14 cents per mile driven.
  • The portion of your business standard mileage rate that will receive depreciation treatment in 2016 will continue to be 24 cents.

Also in its announcement, the IRS noted an adjustment to the standard automobile cost allowable under the fixed and variable rate (FAVR) plan, which considers the costs taxpayers incur by driving their own vehicles for work-related purposes. In 2015, standard automobile costs may not exceed $28,000 (not including trucks and vans), which is a decrease of $200 from 2015. The maximum standard automobile cost for trucks and vans, however, is $31,000 – an increase of $200 over the 2015 rates).

Travel For Tax Savings

If you use your vehicle for business don’t forget to track your mileage. Every mile you travel is an opportunity to realize real tax savings. A financial advisor can help you find these opportunities as well as many others.

By Lesley Mast, CPA (Wooster office)

Are you looking for ways to help you plan for the upcoming tax season? Check out these articles for some great tips:

Easy Year-End Tax Tips For Business Owners

How Long Should You Keep Financial Documents?

What Could Ohio’s Small Business Investor Income Tax Deduction Do For Me?

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Which Life Insurance Policy Is Right For You?

Monday, March 17th, 2014

Back in January, I shared some insight about six common stages of life where you should review your life insurance policy. Today I want to provide some insight about how you can know what the right life insurance plan is for you.  (more…)

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Have You Reviewed Your Life Insurance Lately?

Monday, February 4th, 2013

You’re used to discussing your financial assets with your CPA. You talk to your accountant about your income, your business and your estate plan. But there’s one financial asset that doesn’t always come up in discussions of your financial situation: your life insurance policy. Insurance might seem more like a safeguard than an asset, but it’s an important part of your financial portfolio. And, it’s important to review it regularly with the same diligence that you devote to your income, your business and your estate.

Why review your life insurance? Three reasons: to save money, reduce risk and ensure policy suitability. (more…)

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If something happens to me, what will happen with my financial matters?

Monday, May 24th, 2010

This past New Year’s Eve, I received a call from a client whose husband had been hospitalized for a couple of weeks.  He had mentioned to her that he thought a tax payment was due that day.  She did not know how to make that payment, or if it needed to be paid that day.  We worked things through, but a valuable lesson was learned that day that we are now following up on.  She realized she doesn’t know much about the family finances. (more…)

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