How to MAXIMIZE yourPROFESSIONAL BUSINESS

RELATIONSHIPS

Presented by…CPA’s: Chuck Fredrick, Sidny Zink, Coelene O’Kane & John Lopez

Firm Administrator: Kristi Cowham

Accounting & Tax Services Legal ServicesBanking ServicesFinancial Advisors Marketing Consultants

Agenda & Focus Areas

Accounting & Tax Services

What services are available…

Organization and analysis of financial data IRS Compliance & Problem Resolution

Help Understanding the Numbers

Accounting & Tax Services

• Bookkeepers: Record financial transactions (data entry)

• Accountants: Create & understand reports from data entry (income statement & balance sheet), month-end & year-end journal entries

• CPA: CFO/Expert knowledge, exams, ongoing education, legally represent with IRS, perform/attest to audits/reviews, certify financial statements.

Bookkeepers vs. Accountants vs. Certified Public Accountants (CPA)

Accounting Services

What is the difference?

How to Choose the Right Professional• Knows my business accounting rules

Construction: Tracking rev/expenses by the job

Nonprofit: Tracking rev/expenses by function

• Provides Payroll Services • Provides 1099s on behalf of Business • Produces Financial Statements

• Technology Savvy

• Familiar with various Accounting Software Packages • May be Local or Remote

• COMPATIBLE WORKING STYLE

Accounting Services

ACCOUNTING SERVICES are carried out based on an agreement for procedures based on your Individual Needs

Audit, Review or Compilation• Complete set of Financial

Statements• For Banking, Bonding, Internal

Monthly Write Up•Cash Receipts and Disbursements•Bank Statements• Payroll & Sales Tax Reports

Specialized Services• Controllership

• Fraud Investigations• Receivership & Conservatorship

Accounting Services

Tax Services

Tax Services

Tax Prep. Company vs. Enrolled Agent vs. Certified Public Accountant

Now that you have a business, things get a lot more complex & you will need help.

There are different kinds of people who can help you & some big differences between a Tax Preparation Company, Enrolled Agent and CPA.

Understanding the differences will help you determine the best fit for your needs.

What is the difference?

Tax Services

Tax Preparation CompanyNon-certified tax preparation company

• Not qualified to represent individual or business in front of IRS.

• No additional accounting/tax planning services. • Cannot handle financial audits or sign financial

documents.• Registered tax return preparer competency test, covers

1040 series forms & ethics. 120 questions, approximately 1 hr to complete.

• No additional accounting or tax planning services.

• Pass a comprehensive exam on tax code, or work w/IRS for 5 yrs interpreting & applying tax code & regulations.

• Background check.

Tax Services

Enrolled Agent (EA)Federally licensed tax practitioner specializing in

taxation only.

• Perform every type of accounting, licensed to submit reports, tax planning services.

• Requires Bachelor of Accounting Degree• Required work experience

• (1,800 hours, 1-3 years)• Uniform CPA Exam & State licensure

Tax Services

• 4-part test: auditing, financial accounting, reporting, regulation, & biz environment.

• Further broken down into sub sections such as IT, business law, individual tax & finance

• Ongoing continuing education (80hrs/2yrs)

CPA: Certified Public AccountantA public accountant certified by a state examining board as having met the state’s

legal requirements.

How to Choose the Right Professional

• Experience of tax professional Individual vs. Tax TeamVariety of niche market knowledge

Tax Services

• What niche markets do they specialize in?Retail, Restaurant, Nonprofit, Construction, etc.

Do they understand multi-state tax requirements?

• How do they bill for services & what is the applicable rate?

Hourly vs. flat rate

Preparing For the MeetingWhat Information is Needed

• Collaborative mindset & open to advice.• Accurate cash record (reconciled regularly).• Investment & loan detail for the year.• Purchases made with a credit card (same as cash).

Tax Services

• Profit and loss statement for the year – the more organized the better.• Any capital expenditures made during the year.

Legal Assistance

Needs Identification

Legal Assistance

• What are your needs?• What are you looking for from this person?

- Advice?- Guidance?- Legal Documents?

• Can you communicate well with this person?- Openly?- Freely?

• Do you like this person?• Are they conveniently located?

Types of Attorneys• Contracts

• Law that governs oral & written agreements associated w/exchange of goods & services

• Real Estate• Law that covers rights to

possess, use & enjoy land & the permanent manmade additions to it

Legal Assistance

• Tax and licenses• Registering your business for

federal & state tax IDs & consequences of basic transactions in which you engage

• Intellectual property• Property rights protected

under federal/stateLaw, including copyrightable works, ideas, Discoveries, and inventions

Legal Assistance

Questions to Ask When Interviewing Attorneys

Are you experienced? Are you well-connected? Do you have other clients in my industry? Are you a good teacher? Are you a finder, a minder, or a grinder?

Will you be flexible in your billing? Are you willing to collaborate with other

members of my professional network?

Legal Assistance

Preparing for the Meeting

• Be organized with your information• Explain your business to them• Communicate what you are doing

before you do it• Read your documents• Assess the biggest risks

• New Business?Collaborative

approach involving attorney & accountant

Banking Services

How To Get The Most Out Of Your Banking Relationship

• Finding the Right Banker• Establish and Grow the Relationship

Banking Services

• Referrals– Which bank do they use? What has been their experience?

Would they recommend their banker?• Small Business Focus– Ask questions about the scope and type of work done on

behalf of your bank for small businesses.• Industry & Geography

Finding the Right Banker

Banking Services

• Introduce Yourself & Your Business– Allow time for him or her to get to know you and

your business• Use Your Bank For Regular Counsel– Ask him or her to review your business plan

• Taking Advantage of Products & Services– At least once a year, you should sit down with

your banker to review the products you’re using

Finding the Right Banker

Banking Services

• Banking is About More Than Credit– Your banker should be able to offer other cash

management tools, online and mobile banking services, credit card processing, payroll management and other service

• Ongoing Evaluation– Evaluate these at least a few times a year

with formal meetings…either within-person or phone conversations.

Finding the Right Banker

Banking Services

Establish and Grow the Relationship• Communication

– Be open in these communication opportunities to share concerns and expectations. This is also a platform to disclose all financial information, both good and bad, in a timely and consistent manner.

• Building Trust– Focus on building your banker into one of your strongest advocates

• Financial Preparation– Know your numbers and be prepared to support your sales forecast based on

tangible information

• Strategic Initiatives– Reserve time at least once a year to have your

banker join your company’s leadership team to brainstorm ways in which the company can grow

Banking Services

Establish and Grow the Relationship• Downside contingency planning

– Be prepared to show your banker the downside risk in your business, such as the loss of any key customers or a shift in product/service demand

• Succession planning– Build a succession plan that can be shared with your banker. The last thing

your banker wants is a company solely dependent on one person running it• Banking services

– A win-win situation occurs when the bank is allowed to make money on your relationship and you feel that you are being treated fairly. Be ready to negotiate on bank services, as they are not free and you can drive a better deal with your banker by consolidating banking services into one bank.

Banking Services

• Get to Know Your Banker• Use them as a Sounding Board

• Communicate!

Banking Services

How to Get the Most

Out of Your Relationship

with Your Banker

Financial Advisors

Types of Advisors DefinedRegistered Investment Advisor (RIA)Registered w/ SEC (Securities and Exchange Commission) or state’s securities agency. Advise on investing in securities such as stocks, bonds, mutual funds, or exchange traded funds.

Chartered Financial Consultant (ChFC)Complete CFP Core curriculum related to finance/investing, but not CFP exam, 3 yrs industry experience & passed exams on fundamentals of financial planning, including income tax, insurance, investment & estate planning.

Certified Financial Planner (CFP)Comprehensive 10 hr board exam and several years experience.Advise on budgeting, goal setting, risk levels, types of investments, insurance, retirement plans, etc.

Financial Advisors

Get The Most Out Of Your Financial Advisor by:

Knowing Important Tools

Financial Advisors

Vetting Your Advisor

Making It a Collaboration

Vetting Your Financial Advisor4 Questions To Ask Your Potential Financial Advisor

1. What types of services do you provide?2. What is your education, certifications and

experience?3. What do your clients say about you?4. How are you compensated?

Financial Advisors

Make It a CollaborationTips For a Successful Relationship With Your Financial Advisor

• Trust• Listen and ask questions• Return your advisor’s phone calls• Go to your review appointments• Don’t wait until a crisis

Financial Advisors

Important Tools

• Technology– What kind does advisor utilize?

• Communication– Email vs. phone– What is your preference?

• Reports– What types will I receive?– How frequently?

Financial Advisors

Current Spending Habits & Budget

List of Assets with Approximate Values

List of Liabilities

Preparing for the MeetingEstablish Where You Are Now

Financial Advisors

Short Term GoalsCash Reserve, Car, House

Long Term Goals Life Insurance, Retirement,

College Savings

Preparing for the MeetingEstablish What You Want to Accomplish

Financial Advisors

Marketing

How to Choose the Right Professional

• What is their Experience & Expertise?– How recent and practical is it?

• What are their background & qualifications?

• How much do services cost?– How are they remunerated & why?– Do they receive any commissions, fees or kickbacks from any

other party?

• On what principles does their business operate?

• What clients have they worked for?

Marketing Consultant

Things to Know Before Your Meeting…

• Truths• Audience• Resources• Budget

Marketing Consultant

Know Your Truths

• What is your Message?• What is your Story?• What is your Style?• What are your Business Values?• What is your Tag Line?• What Products/Services do you offer?• What Results are you aiming for?

Marketing Consultant

Know & Understand Your Audience• What target market are you currently serving?

– Age, Sex, Income, Where do they Live, What are their Needs, Wants, Problem to solve, Values and Interests?

– When do they want your product?

• Who do you wish to be expanding services to?

• What terms and phrases are commonly used by your prospective clients?

Marketing Consultant

Internal Resources

Current Marketing Special Offers

Past Marketing

External Resources

NeededDeadlines

Know Your Resources

Marketing Consultant

Know Your Budget

• What amount of do you allocate to marketing? 30% of your cost is expected for the creation of your

message, brochures, design, etc. 70% of your cost is expected for the distribution of it.

• If you have $500 to distribute a newsletter• Anticipate your need of $150 for the

content design and $350 for the printing & mailing of the newsletter

Marketing Consultant

MAXIMIZE Your ProfessionalRelationships

Professional Relationships

• Find Someone You Like• Communicate & Collaborate - Regularly• Consult & Seek Advice• Discuss Short Term & Long Term Goals• Utilize their Resources & Network• Ask For and Provide Referrals

Collaboration & Teamwork

COLLABORATION:Two or more people working together toward shared goals

TEAMWORK:Coming together is a

beginning, Keeping together is

progress,Working together

is a success.

Collaboration

SHARE

WORK TOGETHER

POOLRESOURCESSHARED VISION

COMMITTMENT

COMMUNICATE

ASK

LISTEN

RESOLVE COMPLEX

ISSUES

COLLABORATION

Thank YouQuestions?

Websitewww.durangocpas.com

Phone970-247-0506

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Contact UsChuck Fredrick cfredrick@durangocpas.com

Sidny Zinkszink@durangocpas.com

Coelene O’Kanecmokane@durangocpas.com

John Lopezjopez@durangocpas.com

Kristi Cowhamkcowham@durangocpas.com