CPA Blog

Financial Literacy Team Hands out 600 Free Lunch Bags

The OSCPA Financial Literacy Team handed out 600 free lunch bags to passers-by in Portlands Pioneer Courthouse Square during the lunch hour on August 18. The green bags, sponsored by the team and Lake Oswego accounting firm Delap LLP, had the …

IRS eNews

Inside This Issue - August 25, 2008

Stimulus Payments Update
Recent Disaster Relief
IRS Issues Instructions for New Form 990
Summer 2008 Statistics of Income Bulletin
Hobby or For Profit?
Last Nationwide Tax Forum
IRS Partner …

IRS eNews

Notice 2008-70 solicits applications for authority to issue qualified forestry conservation bonds under section 54B(c) of the Code. It will be published in IRB 2008-36 dated Sept. 8, 2008. Revenue Procedure 2008-48 describes the circumstances under which …

CFOs & CPAs: U.S. in a Recession

The U.S. economy has already entered a recession and the outlook remains negative according to a majority of CFOs and senior-level executive CPAs surveyed by the AICPA.
For a third consecutive quarter, CPAs working in business and industry …

Economic Stimulus for Businesses - New Page on IRS.gov

IRS.gov now contains a page devoted exclusively to the business provisions of the Economic Stimulus Package. Linked from the main ESP page, the new page includes links to our two ESP videos and other news and information for businesses:

Frequently …

Race for the Cure Health Expo

Join the OSCPA Financial Literacy team at the Susan G. Komen Race for the Cure Health Expo on Friday, September 19th, and Saturday, September 20th, at the Oregon Convention Center. Come help out at the Health Expo and hand out information on …

Technology & Productivity Weekly

Headlines - August 21, 2008

Email Archival
Cloud Computing: Small Companies Take Flight
USB Sync for XP Laptops
SMB Archiving
Can We Talk?
Technology Talk: How Real Are Virtual Meetings?
Mobile Device Security is a Growing Concern
Malfunction …

IRS eNews

Inside This Issue - August 18, 2008

Stimulus Payments Update
Commissioner Shulman Names Dick Harvey as Senior Advisor
Tax Talk Today: EITC Due Diligence - It’s Your Responsibility
LMSB - Financial Services Industry Conference Oct. …

Technology & Productivity Weekly

Headlines - August 14, 2008

How to Create a Successful Web Site for Nothing (or Almost Nothing)
Small Firms Vulnerable to ID Theft, Experts Say
Taking Your Practice Online
Web 2.0 Does the Business
Changing Your SME’s Email Platform
With …

Rules Regarding Independent Contractors

In todays free market world, more and more companies are hiring people as independent contractors rather than as employees. The big reasons? To save payroll taxes and benefit costs, which together can add an extra 20% to the cost of having an employee. If youre considering using this strategy, keep in mind that the IRS has criteria for determining independent contractors vs. employees and that penalties can result if you dont follow the rules. The following three criteria are generally considered to be the most important:

1) Behavior Control. Who decides when, where and how the work is performed? Who decides what tools/equipment to use? If additional staff is needed to help with the job, who hires them? If the worker has control over these decisions, then he/she may be considered an independent contractor. (Example: a case involving carpet installers found that they were independent contractors because they, not the flooring services company, determined the manner and sequence in which jobs were completed. They also used their own tools and hired their own helper work force.)

2) Financial Control. Who pays the operating expenses for the work to be performed (i.e. supplies, computer, travel expenses)? Is the worker free to perform services for other companies and/or the public? If the worker controls these decisions, then he/she may be considered an independent contractor. (Example: the carpet installers mentioned above were considered independent contractors because they purchased their own supplies, held the risk of profit or loss on their jobs, and were free to work without penalty for other companies.)

3) Relationship Factor. Who determines the working relationship of the parties? Is the worker provided with employee-type benefits such as insurance, vacation pay or sick pay? Obviously, these types of benefits are only paid to employees, not contractors.

As you can see, the rules are complex and leave some room for interpretation. If you want to increase your chances of convincing the IRS that a worker is in fact an independent contractor, you can take the following steps:

1) Create a simple contract documenting the independent contractor relationship (you can purchase a blank form from Nolo Press). You may wish to specify in the contract that the worker is responsible for his/her own insurance (including workers compensation).
2) Pay for work by the job instead of by the hour, the week or the month.
3) Have all workers submit invoices for work before paying them.
4) Dont forget to complete IRS Form W-9 (Request for Taxpayer Identification Number) when you first start working with a contractor (youll need this info. for your year-end tax filings).

(Sources: IRS, American Express Small Business, Quickfinders)

Business Dashboards

How would it feel if you could turn on your computer every morning and immediately have a complete, real-time picture of your companys financial performance? Not only that, but what if the information was presented in an easy-to-understand, visual manner (i.e. gauges and graphs) as opposed to the usual bunch of lifeless numbers? That is the basic idea behind business dashboards, a promising management tool that is gaining more attention in the business world these days.

In the realm of online accounting, NetSuite is leading the charge with a customizable dashboard that allows managers to view things like sales, new orders, even your daily calendar (part of the companys mantra: One System, No Limits). Of course, you have to be a NetSuite customer to use it. If you are an accountant, Principa offers a powerful and easy-to-use dashboard that can help your customers monitor how they are performing against targets and cash flow projections, perform simple what-if analyses, and more. (Note: if you are a business owner and would like to learn more about this service, you can contact the ultra-friendly folks at Principa and they will be happy to help you find a member of their organization.)

Whether or not you have a business dashboard on your computer, the important thing to remember is this: the best way to improve your company’s financial performance is to sit down and establish some basic financial targets, then consistently measure and monitor your progress toward those goals. That right there is the simple principle behind the dashboard concept. You don’t necessarily need a computer program to do this, but you do need a disciplined approach. In our experience, approximately 90% of businesses never follow this basic “measure and monitor” strategy (either because they’re too busy or because they don’t know how). The 10% that do tend to be the companies that consistently outperform their peers in the same industry (i.e. the star performers).

Advice For Selling Your Business

Thinking of selling your business? One of the first things you should know is that the process is far from a precise science. For example, business valuations can vary greatly depending upon the type of business, the valuation method used (there are several), and a variety of financial factors (which generally boil down to three things: assets, profits and/or cash flow). As if that werent enough, sometimes the most important factor in a companys sale has nothing to do with the numbers- instead, it relates to the buyers motivation. (Case in point: eBay just paid $2.6 billion for Skype, the free internet phone service that has revenues around $60 million and isnt expected to break even until the end of 2006. Why? The folks at eBay plan to use it to make buying and selling easier for their 157 million users.)

Although the process may seem bewildering at the outset, all in all its a lot less confusing and stressful than the experience of starting a business in the first place. If you survived that, you can definitely handle this. As with many things in life, the first step is to focus on the big picture. To help you get started, here are a few simple suggestions:

1) Start early. If you can, start the process three years ahead of time. Business brokers report that 99% of the businesses they list for sale are not properly prepared to be sold. Starting early will give you time to fix problem areas (outdated inventory, unprofitable product lines, poor staffing, etc.) and clean up any possible tax/legal/ownership issues.

2) Systemize your business. A company with an owners manual (i.e. a well-documented set of systems and procedures) will always get a higher price than a company without one. Furthermore, a systemized business is less dependent upon the personal involvement of the owner(s) and thus more attractive to potential buyers.
3) Optimize your financial performance. When somebody buys a business, theyre basically buying a stream of earnings. Obviously, the numbers are an important part of the overall story. Make as many financial improvements as you can leading up to the sale and youll be able to paint a much better picture for potential buyers.
4) Think of business valuation as a starting point. Its rare that buyers and sellers come up with the same figure for a company. Naturally, the buyer wants a lower price and the seller wants a higher one. Your goal should be to come up with a ballpark figure that can be used as a starting point for negotiation. The ultimate goal: to come up with a price that both sides can live with.

Overview of Types of Financing

One of the biggest challenges that successful entrepreneurs face is: how to find money so that you can keep growing. For example, if you are a growing retailer you may need additional capital to open new stores or bring on new product lines. For companies who are just getting started, here is a basic overview of the different types of business financing.

Bank loan
What is it? A bank loan is usually the first step for business owners who need additional capital. Bank loans and credit lines are generally the most cost-effective ways to finance a business.
Getting started: Look for a lender who knows your business, industry and financial needs. Independent community banks are often more approachable than the big national banks. The bank will request a business plan that documents why the company needs the loan and how it will repay it.

Line of credit
What is it? A line of credit is a type of loan (often called a revolving line) that allows the borrower to tap into money without having to file a new loan application each time funds are drawn. Credit lines are set for a fixed amount and may be either secured (no collateral) or unsecured (collateralized). They are generally established for one year and are reviewed by the bank on an annual basis.
Getting started: Lenders want to see a documented financial history of a company before issuing a line of credit. Before they grant lines of credit, banks want to see that a company is moving forward financially and has a game plan for the future.

SBA Loans
What are they? U.S. Small Business Administration loans are federally backed loans for small businesses (i.e. the U.S. government guarantees between 70 percent and 90 percent of the loan, making it far less risky for the bank). The loans are normally repaid in equal monthly installments that include both principal and interest.
Getting started: While the SBA sets the guidelines for the loans it guarantees, businesses should go to lenders that offer these loans rather than to the agency itself. Choose the lender carefully- some have specialties. For a list of lenders, check out the SBA web site.

Factoring
What is it? Factoring refers to the process of selling your accounts receivable to a third party lender (or factor) in exchange for cash. Factoring is often used by cash-hungry businesses who have a large portion of their working capital tied up in accounts receivable. Commissions typically range from one percent to ten percent, depending upon the particular service and risk.
Getting started: Go to one of several companies that specialize in factoring. Most traditional commercial banks usually do not offer it; however, they should be able to make referrals.

Private Placements
What is it? A negotiated sale of stocks, bonds or other investments to institutional investors. The buyers are usually a select group of sophisticated investors.
Getting started: Develop an explicit business plan and gather the right team of professionals to help the firm find its way through the financing maze. Certain banks or investment firms that have experience in doing private placements can be good resources.

Venture Capital
What is it? Venture capital is private funding supplied by professional firms who have a knack for ferreting out high-risk but potentially high-reward investments (often associated with technology-related companies). Venture capitalists are not lenders, but instead typically take an equity stake in the business and play an active role in its management.
Getting started: A variety of sources around the country continually seek out promising companies. Many large banks now venture capital divisions. Most venture funds are highly specialized to finance only specific industries and growth stages, so it’s important to approach the right firm.

(Hat tip: Cash Flow Blog)

Understanding Your Total Business

Ram Charan is a well-known business advisor to CEOs and business executives in companies ranging from start-ups to the Fortune 500. He has a rare gift for translating complex ideas into simple terms that everybody can understand. Here is an excerpt from his classic book, What the CEO Wants You to Know. These basic questions are designed to help you step back and get a picture of your company’s “total business.”

1) What were your company’s sales during the last year?

2) Are sales growing, declining or flat? What do you think about this growth picture?
3) What is your company’s profit margin? Is it growing, declining or flat?
4) How does your margin compare with competitors?
5) Is your company’s cash generation increasing or decreasing? Why is it going one way or the other?
6) Is your company gaining or losing against the competition?

If you can answer these questions, you will have a good grasp of the fundamentals for your company.

Lame Tagline for Ernst & Young

Ernst & Young is featuring a new slogan in their advertising: “Quality In Everything We Do.” Hmmm, that sounds eerily reminescent of a tagline that a major U.S. automaker used back in the 1990’s. Maybe I’m missing something, but isn’t the “quality” promise supposed to be a given? Plus, in typical corporate fashion the tagline says nothing about customers or their aspirations- it’s all about the firm. Anyway, it’s great to finally see some bold thinking from one of the Big Four CPA firms, as opposed to just recycling used marketing ideas from twenty years ago.

WalMart’s Pricing Strategy

In a recent program, PBS’ Frontline examined the inner workings of WalMart. One of the most interesting revelations had to do with the company’s pricing strategy, which was pioneered by legendary founder Sam Walton. The strategy is known as “opening price point,” and here’s how it works.

WalMart goes to great lengths to have an alluring and unbeatable opening price point item in each category- from TV sets to cosmetics to bathing suits. These are the “unbelievable” prices that the company has become famous for (for example, a microwave oven for $14.67). The psychological impact of this opening price point is huge- consumers are led to believe that all of WalMart’s prices are this low. However, the reality is quite different. As confirmed in interviews with former store managers, WalMart does not have the lowest price on every item in every category. In fact, the company often has higher prices than other big retailers (i.e. you might get a better deal down the road at Target). However, in most cases the game is already over because consumers believe that WalMart’s prices are lower across the board. Furthermore, evidence shows that most shoppers don’t even buy the opening price point item. Instead, the low price lures them into the department, where they end up buying a brand name or higher quality item that they are more comfortable with.

So here’s the point: as described in another post (Profit Drivers), pricing is one of the single most important factors that determine your company’s profitability. In fact, price will always have an impact that is two or three times greater than the other drivers. As a result, this cunningly simple strategy is one of the major reasons that WalMart has become the largest retailer in the world. The moral of the story? Pay close attention to your pricing strategy, it has a huge impact on the bottom line.

Blink Accounting

In his new book, Blink- The Power of Thinking Without Thinking, Malcolm Gladwell encourages readers to use less information when making decisions. The trick, he says, is to filter out the irrelevant and focus on the meaningful. What on earth does this have to do with accounting? Plenty. Here’s why: one of the biggest challenges with accounting is not getting mired in all the details. The simple truth is that most companies dont need more data and reports- they need less, so that they can focus on the big picture. That’s why things like key performance indicators (KPIs) are much more useful to business owners than financial statements: because they provide at-a-glance feedback on how the business is performing. Blink.

The Five Stages of Growth

Here is an amazingly simple idea that can help business owners figure out what it will take to help their company reach the next level of growth. It’s called the Business Life Cycle.

The concept is relatively straightforward: there are five distinct stages that most businesses go through as they mature. Each stage of the cycle poses a different set of challenges and requires the owners to apply a different set of skills and resources in order to ensure the continued success of the business.

Stage One- Existence
The first stage is known as the Existence phase. During this time, the major goal is simply to get the business up and running. Owners are required to be entrepreneurial and hands-on during phase one. They supervise everything directly and business systems are minimal to non-existent. The emphasis here is on producing products or services and selling them, period. (A sobering note: 75% of businesses fail during stage one.)

Stage Two- Survival
During this phase, the business is experiencing moderate sales growth but is still in jeopardy of failing. The founders are still running the company and there is minimal emphasis on management systems, planning, etc. Problems that occur during this stage include conflicts between founders/partners in the business, working capital shortages, and temptation to diversify into unrelated businesses.

Stage Three- Success
At this stage, the survival crisis has been solved and a leader has been chosen (usually a strong salesperson or inventor/designer). The company is profitable and more attention is being given to formalizing business functions. Companies in this phase often rely upon a small number of customers for most of their revenue. Problems that occur during this phase include the following: access to the leader becomes increasingly difficult, key employees become disenchanted and leave, reactionary planning is the norm, and financial reporting and control systems are inadequate for sales volumes.

Stage Four- Take Off
At this phase the company has achieved a track record of sustained profitability and has resources for growth. There is a professional management team in place and a strong emphasis on organization. The company has a solid financial base. The problems that occur during this phase include the following: senior management feels they are losing control of day-to-day operations, increased vulnerability to inside factors (such as politics, bureaucracy, culture), slow reaction to new business opportunities, and increased threats from strong competitors.

Stage Five- Resource Maturity
At this stage the company has extensive systems in place and the primary goal is maximizing the return on investment (or ROI). However, companies in this stage may have started to lose their competitive edge. There may be a lack of new ideas and a trend of eroding profitability. As a result, owners may feel frustrated or bored and may want “out” of the business. At this stage, the biggest challenge is for the company to innovate and renew itself (i.e. sort of like going back and becoming a stage three company all over again).

Conclusion
So, what good does it do to know about the five stages of the business life cycle? One of the biggest advantages is simply psychological. Identifying what stage your business is in right now can help you understand that many of the problems and frustrations you’re experiencing are typical. In fact, all growing companies face them. So don’t worry, you don’t need to start taking anti-depressants.

Equally important, knowing what stage your business is in can help you determine what skills will be needed in order to reach the next level. If your company is struggling with the “classic” symptoms of one of the stages and is having a tough time breaking free, then it might be time to make an investment in new skills or start looking for external sources who can help. (Source: Principa)

Key Performance Indicators

One of the keys to effective financial management is to regularly monitor the “critical factors” that determine the success of your business. Financial statements aren’t great for this purpose because they can be complicated and time-consuming to prepare. Instead, what most companies need is a short list of key measures that they can look at on a regular basis (weekly or monthly) to see how the business is tracking. The way that many successful companies do this is through Key Performance Indicators (or KPIs for short).

What are KPIs?
KPIs are quick measures of your business’ overall health and well-being. They focus on aspects of your company’s performance that are vital to ongoing and future success. In essence, KPIs work like a report card to tell how the business is performing in crucial areas. As a result, they allow you to 1) quickly get a clear picture of what’s happening with the business and 2) get an early read on trends and future profitability (i.e. while there’s still time to take action that will influence the outcome).

Examples of KPIs
KPIs vary greatly by company and industry. For example, big retailers (like Starbucks and WalMart) regularly track “same store sales growth” as a measure of overall sales performance. A company like Proctor & Gamble might monitor “revenue and/or gross margin by product line” to track the performance of its different products and divisions. A company like FedEx might track “average delivery time” to monitor its overall efficiency. Other examples of widely-used KPIs include things like: revenue/expense ratio, average age of receivables, total order shipped, days inventory on hand, marketing expense as % of sales, etc.

Five Steps for Developing KPIs
Following is an overview of the basic steps involved in creating and implementing a basic set of KPIs for your company:

Step one: communicate the purpose of KPIs within the organization.
Realistically speaking, KPIs that are not owned and accepted by the workforce will not succeed. In order for KPIs to be successful, you must first work on creating the right internal environment and getting buy-in from key stakeholders (employees, managers, customers, etc.) These are the people who will be the ultimate drivers of the project’s success.

One of the biggest challenges that companies face in developing KPIs is overcoming team members’ fears and uncertainties. Most employees hold a long-standing suspicion of management-led forays into performance improvement (i.e. “Why are they doing this?” “Will the information be used against me?”). The best way to eliminate these fears is to explain the rationale for KPIs at the outset and include everybody in the process. When this is done openly and clearly, then all employees should at least believe that “we need to start doing things differently” and a core group of them should be very clear about what KPIs involve and how they will be used.

Step two: identify the “critical success factors” for your company.
These are the key areas in which things must go right in order for the company to remain competitive and succeed. Sometimes these factors are mentioned in the company’s business or strategic planning documents. Other times they haven’t been written down but the owners have an intuitive feel for what they are. Generally speaking, critical success factors come from one or more of the four broad areas that determine success for any organization: customer focus, financial performance, people, and innovation.

Tip
Most companies try to begin the KPI process by identifying critical success factors. However, the best time to start building trust about the use of KPIs is at the initiation stage- that is, the first time the idea is raised within the organization. Therefore, we can’t emphasize enough the importance of undertaking step one (communication) before step two in order to maximize the chance of success.

Step three: select and develop KPIs.
Once the critical success factors have been determined, the next step is to start defining and selecting KPIs. If the CSFs are clearly defined, then it is a fairly straightforward process to generate ideas for KPIs. Key employees are actively involved in this process and the work is often done in teams. In fact, major KPI breakthroughs usually do not come from management but from local teams and workgroups themselves (from the factory floor, so to speak). Management’s primary role is to provide the leadership and drive required to develop KPIs, and then provide the support and assistance needed to implement them.

Tips
1) Focus on practicality, not perfection. Encourage teams to pursue KPIs that provide valuable information but do not require inordinate resources to collect.
2) Look for leading vs. lagging indicators. Lagging indicators reflect things that have already happened (i.e. sales). Leading indicators are helpful in predicting future results (i.e. product quality, customer satisfaction). Leading indicators give management and employees the opportunity to act quickly when results aren’t being achieved and, as a result, impact the organization’s overall performance.
3) Work with a limited, manageable number of KPIs. Most companies need only a few measures, in no case more than a dozen. Too many KPIs makes it difficult to focus.
4) Persistence pays off. Virtually no team will achieve a perfect set of KPIs on its first or even second attempt. Keep experimenting and you’re bound to succeed.

Step four: implement the KPIs.
Once KPIs have been developed and people within the organization are involved in the process, the next step is to implement a system that regularly tracks and reports the information to key individuals (for example, the business owner). In many cases, implementing a KPI involves two people: an employee in the department where the activity is being measured (ex. manufacturing, sales, customer service) will be given responsibility for gathering the data, and the manager of that department will be given responsibility for achieving the target and reporting results to the owner. Some types of data (i.e. operational data) may be collected weekly or monthly from the company’s computer system. Other types of data (i.e. information about customers’ satisfaction with the organization) may only be collected annually through a survey. Some other useful methods for collecting data include checklists (i.e. to analyze results over a period of time), visual inspections (i.e. for quality), and focus groups.

Step five: monitor results and make improvements (i.e. take action).
In many respects, step five is the most obvious and the easiest to complete. The important thing is to monitor your KPIs regularly and compare them to past performance and established targets. If the desired results aren’t being achieved, then management must discuss what action to take. Potential actions might include: taking a closer look at the problem area, revising the target, making operational corrections, or changing the company’s strategy.

Conclusion
It is important to point out that the real goal of building a KPI system is not just to provide a short list of indicators that shows what’s happening with the business. Don’t get me wrong, that’s a wonderful thing. However, the greatest value of KPIs is that they can help you create a culture of continuous improvement and teamwork within your company. KPIs provide an opportunity to keep everybody (management, employees, suppliers) focused on what needs to be done in order to improve performance and keep the business on course. When teams understand where management wants the company to go, and how their job fits into the overall plan, they are enlightened and empowered to help the company achieve its objectives. And as most leaders of successful companies know, people are far and away the most important drivers of your business’ success. (Source: Principa)

Financial Literacy Team Hands out 600 Free Lunch Bags

The OSCPA Financial Literacy Team handed out 600 free lunch bags to passers-by in Portlands Pioneer Courthouse Square during the lunch hour on August 18. The green bags, sponsored by the team and Lake Oswego accounting firm Delap LLP, had the …

IRS eNews

Inside This Issue - August 25, 2008

Stimulus Payments Update
Recent Disaster Relief
IRS Issues Instructions for New Form 990
Summer 2008 Statistics of Income Bulletin
Hobby or For Profit?
Last Nationwide Tax Forum
IRS Partner …

IRS eNews

Notice 2008-70 solicits applications for authority to issue qualified forestry conservation bonds under section 54B(c) of the Code. It will be published in IRB 2008-36 dated Sept. 8, 2008. Revenue Procedure 2008-48 describes the circumstances under which …

CFOs & CPAs: U.S. in a Recession

The U.S. economy has already entered a recession and the outlook remains negative according to a majority of CFOs and senior-level executive CPAs surveyed by the AICPA.
For a third consecutive quarter, CPAs working in business and industry …

IRS eNews

Inside This Issue - August 25, 2008

Stimulus Payments Update
Recent Disaster Relief
IRS Issues Instructions for New Form 990
Summer 2008 Statistics of Income Bulletin
Hobby or For Profit?
Last Nationwide Tax Forum
IRS Partner …

IRS eNews

Notice 2008-70 solicits applications for authority to issue qualified forestry conservation bonds under section 54B(c) of the Code. It will be published in IRB 2008-36 dated Sept. 8, 2008. Revenue Procedure 2008-48 describes the circumstances under which …

CFOs & CPAs: U.S. in a Recession

The U.S. economy has already entered a recession and the outlook remains negative according to a majority of CFOs and senior-level executive CPAs surveyed by the AICPA.
For a third consecutive quarter, CPAs working in business and industry …

Rules Regarding Independent Contractors

In todays free market world, more and more companies are hiring people as independent contractors rather than as employees. The big reasons? To save payroll taxes and benefit costs, which together can add an extra 20% to the cost of having an employee. If youre considering using this strategy, keep in mind that the IRS has criteria for determining independent contractors vs. employees and that penalties can result if you dont follow the rules. The following three criteria are generally considered to be the most important:

1) Behavior Control. Who decides when, where and how the work is performed? Who decides what tools/equipment to use? If additional staff is needed to help with the job, who hires them? If the worker has control over these decisions, then he/she may be considered an independent contractor. (Example: a case involving carpet installers found that they were independent contractors because they, not the flooring services company, determined the manner and sequence in which jobs were completed. They also used their own tools and hired their own helper work force.)

2) Financial Control. Who pays the operating expenses for the work to be performed (i.e. supplies, computer, travel expenses)? Is the worker free to perform services for other companies and/or the public? If the worker controls these decisions, then he/she may be considered an independent contractor. (Example: the carpet installers mentioned above were considered independent contractors because they purchased their own supplies, held the risk of profit or loss on their jobs, and were free to work without penalty for other companies.)

3) Relationship Factor. Who determines the working relationship of the parties? Is the worker provided with employee-type benefits such as insurance, vacation pay or sick pay? Obviously, these types of benefits are only paid to employees, not contractors.

As you can see, the rules are complex and leave some room for interpretation. If you want to increase your chances of convincing the IRS that a worker is in fact an independent contractor, you can take the following steps:

1) Create a simple contract documenting the independent contractor relationship (you can purchase a blank form from Nolo Press). You may wish to specify in the contract that the worker is responsible for his/her own insurance (including workers compensation).
2) Pay for work by the job instead of by the hour, the week or the month.
3) Have all workers submit invoices for work before paying them.
4) Dont forget to complete IRS Form W-9 (Request for Taxpayer Identification Number) when you first start working with a contractor (youll need this info. for your year-end tax filings).

(Sources: IRS, American Express Small Business, Quickfinders)

Business Dashboards

How would it feel if you could turn on your computer every morning and immediately have a complete, real-time picture of your companys financial performance? Not only that, but what if the information was presented in an easy-to-understand, visual manner (i.e. gauges and graphs) as opposed to the usual bunch of lifeless numbers? That is the basic idea behind business dashboards, a promising management tool that is gaining more attention in the business world these days.

In the realm of online accounting, NetSuite is leading the charge with a customizable dashboard that allows managers to view things like sales, new orders, even your daily calendar (part of the companys mantra: One System, No Limits). Of course, you have to be a NetSuite customer to use it. If you are an accountant, Principa offers a powerful and easy-to-use dashboard that can help your customers monitor how they are performing against targets and cash flow projections, perform simple what-if analyses, and more. (Note: if you are a business owner and would like to learn more about this service, you can contact the ultra-friendly folks at Principa and they will be happy to help you find a member of their organization.)

Whether or not you have a business dashboard on your computer, the important thing to remember is this: the best way to improve your company’s financial performance is to sit down and establish some basic financial targets, then consistently measure and monitor your progress toward those goals. That right there is the simple principle behind the dashboard concept. You don’t necessarily need a computer program to do this, but you do need a disciplined approach. In our experience, approximately 90% of businesses never follow this basic “measure and monitor” strategy (either because they’re too busy or because they don’t know how). The 10% that do tend to be the companies that consistently outperform their peers in the same industry (i.e. the star performers).

Advice For Selling Your Business

Thinking of selling your business? One of the first things you should know is that the process is far from a precise science. For example, business valuations can vary greatly depending upon the type of business, the valuation method used (there are several), and a variety of financial factors (which generally boil down to three things: assets, profits and/or cash flow). As if that werent enough, sometimes the most important factor in a companys sale has nothing to do with the numbers- instead, it relates to the buyers motivation. (Case in point: eBay just paid $2.6 billion for Skype, the free internet phone service that has revenues around $60 million and isnt expected to break even until the end of 2006. Why? The folks at eBay plan to use it to make buying and selling easier for their 157 million users.)

Although the process may seem bewildering at the outset, all in all its a lot less confusing and stressful than the experience of starting a business in the first place. If you survived that, you can definitely handle this. As with many things in life, the first step is to focus on the big picture. To help you get started, here are a few simple suggestions:

1) Start early. If you can, start the process three years ahead of time. Business brokers report that 99% of the businesses they list for sale are not properly prepared to be sold. Starting early will give you time to fix problem areas (outdated inventory, unprofitable product lines, poor staffing, etc.) and clean up any possible tax/legal/ownership issues.

2) Systemize your business. A company with an owners manual (i.e. a well-documented set of systems and procedures) will always get a higher price than a company without one. Furthermore, a systemized business is less dependent upon the personal involvement of the owner(s) and thus more attractive to potential buyers.
3) Optimize your financial performance. When somebody buys a business, theyre basically buying a stream of earnings. Obviously, the numbers are an important part of the overall story. Make as many financial improvements as you can leading up to the sale and youll be able to paint a much better picture for potential buyers.
4) Think of business valuation as a starting point. Its rare that buyers and sellers come up with the same figure for a company. Naturally, the buyer wants a lower price and the seller wants a higher one. Your goal should be to come up with a ballpark figure that can be used as a starting point for negotiation. The ultimate goal: to come up with a price that both sides can live with.

Overview of Types of Financing

One of the biggest challenges that successful entrepreneurs face is: how to find money so that you can keep growing. For example, if you are a growing retailer you may need additional capital to open new stores or bring on new product lines. For companies who are just getting started, here is a basic overview of the different types of business financing.

Bank loan
What is it? A bank loan is usually the first step for business owners who need additional capital. Bank loans and credit lines are generally the most cost-effective ways to finance a business.
Getting started: Look for a lender who knows your business, industry and financial needs. Independent community banks are often more approachable than the big national banks. The bank will request a business plan that documents why the company needs the loan and how it will repay it.

Line of credit
What is it? A line of credit is a type of loan (often called a revolving line) that allows the borrower to tap into money without having to file a new loan application each time funds are drawn. Credit lines are set for a fixed amount and may be either secured (no collateral) or unsecured (collateralized). They are generally established for one year and are reviewed by the bank on an annual basis.
Getting started: Lenders want to see a documented financial history of a company before issuing a line of credit. Before they grant lines of credit, banks want to see that a company is moving forward financially and has a game plan for the future.

SBA Loans
What are they? U.S. Small Business Administration loans are federally backed loans for small businesses (i.e. the U.S. government guarantees between 70 percent and 90 percent of the loan, making it far less risky for the bank). The loans are normally repaid in equal monthly installments that include both principal and interest.
Getting started: While the SBA sets the guidelines for the loans it guarantees, businesses should go to lenders that offer these loans rather than to the agency itself. Choose the lender carefully- some have specialties. For a list of lenders, check out the SBA web site.

Factoring
What is it? Factoring refers to the process of selling your accounts receivable to a third party lender (or factor) in exchange for cash. Factoring is often used by cash-hungry businesses who have a large portion of their working capital tied up in accounts receivable. Commissions typically range from one percent to ten percent, depending upon the particular service and risk.
Getting started: Go to one of several companies that specialize in factoring. Most traditional commercial banks usually do not offer it; however, they should be able to make referrals.

Private Placements
What is it? A negotiated sale of stocks, bonds or other investments to institutional investors. The buyers are usually a select group of sophisticated investors.
Getting started: Develop an explicit business plan and gather the right team of professionals to help the firm find its way through the financing maze. Certain banks or investment firms that have experience in doing private placements can be good resources.

Venture Capital
What is it? Venture capital is private funding supplied by professional firms who have a knack for ferreting out high-risk but potentially high-reward investments (often associated with technology-related companies). Venture capitalists are not lenders, but instead typically take an equity stake in the business and play an active role in its management.
Getting started: A variety of sources around the country continually seek out promising companies. Many large banks now venture capital divisions. Most venture funds are highly specialized to finance only specific industries and growth stages, so it’s important to approach the right firm.

(Hat tip: Cash Flow Blog)

Understanding Your Total Business

Ram Charan is a well-known business advisor to CEOs and business executives in companies ranging from start-ups to the Fortune 500. He has a rare gift for translating complex ideas into simple terms that everybody can understand. Here is an excerpt from his classic book, What the CEO Wants You to Know. These basic questions are designed to help you step back and get a picture of your company’s “total business.”

1) What were your company’s sales during the last year?

2) Are sales growing, declining or flat? What do you think about this growth picture?
3) What is your company’s profit margin? Is it growing, declining or flat?
4) How does your margin compare with competitors?
5) Is your company’s cash generation increasing or decreasing? Why is it going one way or the other?
6) Is your company gaining or losing against the competition?

If you can answer these questions, you will have a good grasp of the fundamentals for your company.

Lame Tagline for Ernst & Young

Ernst & Young is featuring a new slogan in their advertising: “Quality In Everything We Do.” Hmmm, that sounds eerily reminescent of a tagline that a major U.S. automaker used back in the 1990’s. Maybe I’m missing something, but isn’t the “quality” promise supposed to be a given? Plus, in typical corporate fashion the tagline says nothing about customers or their aspirations- it’s all about the firm. Anyway, it’s great to finally see some bold thinking from one of the Big Four CPA firms, as opposed to just recycling used marketing ideas from twenty years ago.

WalMart’s Pricing Strategy

In a recent program, PBS’ Frontline examined the inner workings of WalMart. One of the most interesting revelations had to do with the company’s pricing strategy, which was pioneered by legendary founder Sam Walton. The strategy is known as “opening price point,” and here’s how it works.

WalMart goes to great lengths to have an alluring and unbeatable opening price point item in each category- from TV sets to cosmetics to bathing suits. These are the “unbelievable” prices that the company has become famous for (for example, a microwave oven for $14.67). The psychological impact of this opening price point is huge- consumers are led to believe that all of WalMart’s prices are this low. However, the reality is quite different. As confirmed in interviews with former store managers, WalMart does not have the lowest price on every item in every category. In fact, the company often has higher prices than other big retailers (i.e. you might get a better deal down the road at Target). However, in most cases the game is already over because consumers believe that WalMart’s prices are lower across the board. Furthermore, evidence shows that most shoppers don’t even buy the opening price point item. Instead, the low price lures them into the department, where they end up buying a brand name or higher quality item that they are more comfortable with.

So here’s the point: as described in another post (Profit Drivers), pricing is one of the single most important factors that determine your company’s profitability. In fact, price will always have an impact that is two or three times greater than the other drivers. As a result, this cunningly simple strategy is one of the major reasons that WalMart has become the largest retailer in the world. The moral of the story? Pay close attention to your pricing strategy, it has a huge impact on the bottom line.

Blink Accounting

In his new book, Blink- The Power of Thinking Without Thinking, Malcolm Gladwell encourages readers to use less information when making decisions. The trick, he says, is to filter out the irrelevant and focus on the meaningful. What on earth does this have to do with accounting? Plenty. Here’s why: one of the biggest challenges with accounting is not getting mired in all the details. The simple truth is that most companies dont need more data and reports- they need less, so that they can focus on the big picture. That’s why things like key performance indicators (KPIs) are much more useful to business owners than financial statements: because they provide at-a-glance feedback on how the business is performing. Blink.

Rules Regarding Independent Contractors

In todays free market world, more and more companies are hiring people as independent contractors rather than as employees. The big reasons? To save payroll taxes and benefit costs, which together can add an extra 20% to the cost of having an employee. If youre considering using this strategy, keep in mind that the IRS has criteria for determining independent contractors vs. employees and that penalties can result if you dont follow the rules. The following three criteria are generally considered to be the most important:

1) Behavior Control. Who decides when, where and how the work is performed? Who decides what tools/equipment to use? If additional staff is needed to help with the job, who hires them? If the worker has control over these decisions, then he/she may be considered an independent contractor. (Example: a case involving carpet installers found that they were independent contractors because they, not the flooring services company, determined the manner and sequence in which jobs were completed. They also used their own tools and hired their own helper work force.)

2) Financial Control. Who pays the operating expenses for the work to be performed (i.e. supplies, computer, travel expenses)? Is the worker free to perform services for other companies and/or the public? If the worker controls these decisions, then he/she may be considered an independent contractor. (Example: the carpet installers mentioned above were considered independent contractors because they purchased their own supplies, held the risk of profit or loss on their jobs, and were free to work without penalty for other companies.)

3) Relationship Factor. Who determines the working relationship of the parties? Is the worker provided with employee-type benefits such as insurance, vacation pay or sick pay? Obviously, these types of benefits are only paid to employees, not contractors.

As you can see, the rules are complex and leave some room for interpretation. If you want to increase your chances of convincing the IRS that a worker is in fact an independent contractor, you can take the following steps:

1) Create a simple contract documenting the independent contractor relationship (you can purchase a blank form from Nolo Press). You may wish to specify in the contract that the worker is responsible for his/her own insurance (including workers compensation).
2) Pay for work by the job instead of by the hour, the week or the month.
3) Have all workers submit invoices for work before paying them.
4) Dont forget to complete IRS Form W-9 (Request for Taxpayer Identification Number) when you first start working with a contractor (youll need this info. for your year-end tax filings).

(Sources: IRS, American Express Small Business, Quickfinders)

Business Dashboards

How would it feel if you could turn on your computer every morning and immediately have a complete, real-time picture of your companys financial performance? Not only that, but what if the information was presented in an easy-to-understand, visual manner (i.e. gauges and graphs) as opposed to the usual bunch of lifeless numbers? That is the basic idea behind business dashboards, a promising management tool that is gaining more attention in the business world these days.

In the realm of online accounting, NetSuite is leading the charge with a customizable dashboard that allows managers to view things like sales, new orders, even your daily calendar (part of the companys mantra: One System, No Limits). Of course, you have to be a NetSuite customer to use it. If you are an accountant, Principa offers a powerful and easy-to-use dashboard that can help your customers monitor how they are performing against targets and cash flow projections, perform simple what-if analyses, and more. (Note: if you are a business owner and would like to learn more about this service, you can contact the ultra-friendly folks at Principa and they will be happy to help you find a member of their organization.)

Whether or not you have a business dashboard on your computer, the important thing to remember is this: the best way to improve your company’s financial performance is to sit down and establish some basic financial targets, then consistently measure and monitor your progress toward those goals. That right there is the simple principle behind the dashboard concept. You don’t necessarily need a computer program to do this, but you do need a disciplined approach. In our experience, approximately 90% of businesses never follow this basic “measure and monitor” strategy (either because they’re too busy or because they don’t know how). The 10% that do tend to be the companies that consistently outperform their peers in the same industry (i.e. the star performers).

Advice For Selling Your Business

Thinking of selling your business? One of the first things you should know is that the process is far from a precise science. For example, business valuations can vary greatly depending upon the type of business, the valuation method used (there are several), and a variety of financial factors (which generally boil down to three things: assets, profits and/or cash flow). As if that werent enough, sometimes the most important factor in a companys sale has nothing to do with the numbers- instead, it relates to the buyers motivation. (Case in point: eBay just paid $2.6 billion for Skype, the free internet phone service that has revenues around $60 million and isnt expected to break even until the end of 2006. Why? The folks at eBay plan to use it to make buying and selling easier for their 157 million users.)

Although the process may seem bewildering at the outset, all in all its a lot less confusing and stressful than the experience of starting a business in the first place. If you survived that, you can definitely handle this. As with many things in life, the first step is to focus on the big picture. To help you get started, here are a few simple suggestions:

1) Start early. If you can, start the process three years ahead of time. Business brokers report that 99% of the businesses they list for sale are not properly prepared to be sold. Starting early will give you time to fix problem areas (outdated inventory, unprofitable product lines, poor staffing, etc.) and clean up any possible tax/legal/ownership issues.

2) Systemize your business. A company with an owners manual (i.e. a well-documented set of systems and procedures) will always get a higher price than a company without one. Furthermore, a systemized business is less dependent upon the personal involvement of the owner(s) and thus more attractive to potential buyers.
3) Optimize your financial performance. When somebody buys a business, theyre basically buying a stream of earnings. Obviously, the numbers are an important part of the overall story. Make as many financial improvements as you can leading up to the sale and youll be able to paint a much better picture for potential buyers.
4) Think of business valuation as a starting point. Its rare that buyers and sellers come up with the same figure for a company. Naturally, the buyer wants a lower price and the seller wants a higher one. Your goal should be to come up with a ballpark figure that can be used as a starting point for negotiation. The ultimate goal: to come up with a price that both sides can live with.

Overview of Types of Financing

One of the biggest challenges that successful entrepreneurs face is: how to find money so that you can keep growing. For example, if you are a growing retailer you may need additional capital to open new stores or bring on new product lines. For companies who are just getting started, here is a basic overview of the different types of business financing.

Bank loan
What is it? A bank loan is usually the first step for business owners who need additional capital. Bank loans and credit lines are generally the most cost-effective ways to finance a business.
Getting started: Look for a lender who knows your business, industry and financial needs. Independent community banks are often more approachable than the big national banks. The bank will request a business plan that documents why the company needs the loan and how it will repay it.

Line of credit
What is it? A line of credit is a type of loan (often called a revolving line) that allows the borrower to tap into money without having to file a new loan application each time funds are drawn. Credit lines are set for a fixed amount and may be either secured (no collateral) or unsecured (collateralized). They are generally established for one year and are reviewed by the bank on an annual basis.
Getting started: Lenders want to see a documented financial history of a company before issuing a line of credit. Before they grant lines of credit, banks want to see that a company is moving forward financially and has a game plan for the future.

SBA Loans
What are they? U.S. Small Business Administration loans are federally backed loans for small businesses (i.e. the U.S. government guarantees between 70 percent and 90 percent of the loan, making it far less risky for the bank). The loans are normally repaid in equal monthly installments that include both principal and interest.
Getting started: While the SBA sets the guidelines for the loans it guarantees, businesses should go to lenders that offer these loans rather than to the agency itself. Choose the lender carefully- some have specialties. For a list of lenders, check out the SBA web site.

Factoring
What is it? Factoring refers to the process of selling your accounts receivable to a third party lender (or factor) in exchange for cash. Factoring is often used by cash-hungry businesses who have a large portion of their working capital tied up in accounts receivable. Commissions typically range from one percent to ten percent, depending upon the particular service and risk.
Getting started: Go to one of several companies that specialize in factoring. Most traditional commercial banks usually do not offer it; however, they should be able to make referrals.

Private Placements
What is it? A negotiated sale of stocks, bonds or other investments to institutional investors. The buyers are usually a select group of sophisticated investors.
Getting started: Develop an explicit business plan and gather the right team of professionals to help the firm find its way through the financing maze. Certain banks or investment firms that have experience in doing private placements can be good resources.

Venture Capital
What is it? Venture capital is private funding supplied by professional firms who have a knack for ferreting out high-risk but potentially high-reward investments (often associated with technology-related companies). Venture capitalists are not lenders, but instead typically take an equity stake in the business and play an active role in its management.
Getting started: A variety of sources around the country continually seek out promising companies. Many large banks now venture capital divisions. Most venture funds are highly specialized to finance only specific industries and growth stages, so it’s important to approach the right firm.

(Hat tip: Cash Flow Blog)

Understanding Your Total Business

Ram Charan is a well-known business advisor to CEOs and business executives in companies ranging from start-ups to the Fortune 500. He has a rare gift for translating complex ideas into simple terms that everybody can understand. Here is an excerpt from his classic book, What the CEO Wants You to Know. These basic questions are designed to help you step back and get a picture of your company’s “total business.”

1) What were your company’s sales during the last year?

2) Are sales growing, declining or flat? What do you think about this growth picture?
3) What is your company’s profit margin? Is it growing, declining or flat?
4) How does your margin compare with competitors?
5) Is your company’s cash generation increasing or decreasing? Why is it going one way or the other?
6) Is your company gaining or losing against the competition?

If you can answer these questions, you will have a good grasp of the fundamentals for your company.

Lame Tagline for Ernst & Young

Ernst & Young is featuring a new slogan in their advertising: “Quality In Everything We Do.” Hmmm, that sounds eerily reminescent of a tagline that a major U.S. automaker used back in the 1990’s. Maybe I’m missing something, but isn’t the “quality” promise supposed to be a given? Plus, in typical corporate fashion the tagline says nothing about customers or their aspirations- it’s all about the firm. Anyway, it’s great to finally see some bold thinking from one of the Big Four CPA firms, as opposed to just recycling used marketing ideas from twenty years ago.

WalMart’s Pricing Strategy

In a recent program, PBS’ Frontline examined the inner workings of WalMart. One of the most interesting revelations had to do with the company’s pricing strategy, which was pioneered by legendary founder Sam Walton. The strategy is known as “opening price point,” and here’s how it works.

WalMart goes to great lengths to have an alluring and unbeatable opening price point item in each category- from TV sets to cosmetics to bathing suits. These are the “unbelievable” prices that the company has become famous for (for example, a microwave oven for $14.67). The psychological impact of this opening price point is huge- consumers are led to believe that all of WalMart’s prices are this low. However, the reality is quite different. As confirmed in interviews with former store managers, WalMart does not have the lowest price on every item in every category. In fact, the company often has higher prices than other big retailers (i.e. you might get a better deal down the road at Target). However, in most cases the game is already over because consumers believe that WalMart’s prices are lower across the board. Furthermore, evidence shows that most shoppers don’t even buy the opening price point item. Instead, the low price lures them into the department, where they end up buying a brand name or higher quality item that they are more comfortable with.

So here’s the point: as described in another post (Profit Drivers), pricing is one of the single most important factors that determine your company’s profitability. In fact, price will always have an impact that is two or three times greater than the other drivers. As a result, this cunningly simple strategy is one of the major reasons that WalMart has become the largest retailer in the world. The moral of the story? Pay close attention to your pricing strategy, it has a huge impact on the bottom line.

Blink Accounting

In his new book, Blink- The Power of Thinking Without Thinking, Malcolm Gladwell encourages readers to use less information when making decisions. The trick, he says, is to filter out the irrelevant and focus on the meaningful. What on earth does this have to do with accounting? Plenty. Here’s why: one of the biggest challenges with accounting is not getting mired in all the details. The simple truth is that most companies dont need more data and reports- they need less, so that they can focus on the big picture. That’s why things like key performance indicators (KPIs) are much more useful to business owners than financial statements: because they provide at-a-glance feedback on how the business is performing. Blink.

The Five Stages of Growth

Here is an amazingly simple idea that can help business owners figure out what it will take to help their company reach the next level of growth. It’s called the Business Life Cycle.

The concept is relatively straightforward: there are five distinct stages that most businesses go through as they mature. Each stage of the cycle poses a different set of challenges and requires the owners to apply a different set of skills and resources in order to ensure the continued success of the business.

Stage One- Existence
The first stage is known as the Existence phase. During this time, the major goal is simply to get the business up and running. Owners are required to be entrepreneurial and hands-on during phase one. They supervise everything directly and business systems are minimal to non-existent. The emphasis here is on producing products or services and selling them, period. (A sobering note: 75% of businesses fail during stage one.)

Stage Two- Survival
During this phase, the business is experiencing moderate sales growth but is still in jeopardy of failing. The founders are still running the company and there is minimal emphasis on management systems, planning, etc. Problems that occur during this stage include conflicts between founders/partners in the business, working capital shortages, and temptation to diversify into unrelated businesses.

Stage Three- Success
At this stage, the survival crisis has been solved and a leader has been chosen (usually a strong salesperson or inventor/designer). The company is profitable and more attention is being given to formalizing business functions. Companies in this phase often rely upon a small number of customers for most of their revenue. Problems that occur during this phase include the following: access to the leader becomes increasingly difficult, key employees become disenchanted and leave, reactionary planning is the norm, and financial reporting and control systems are inadequate for sales volumes.

Stage Four- Take Off
At this phase the company has achieved a track record of sustained profitability and has resources for growth. There is a professional management team in place and a strong emphasis on organization. The company has a solid financial base. The problems that occur during this phase include the following: senior management feels they are losing control of day-to-day operations, increased vulnerability to inside factors (such as politics, bureaucracy, culture), slow reaction to new business opportunities, and increased threats from strong competitors.

Stage Five- Resource Maturity
At this stage the company has extensive systems in place and the primary goal is maximizing the return on investment (or ROI). However, companies in this stage may have started to lose their competitive edge. There may be a lack of new ideas and a trend of eroding profitability. As a result, owners may feel frustrated or bored and may want “out” of the business. At this stage, the biggest challenge is for the company to innovate and renew itself (i.e. sort of like going back and becoming a stage three company all over again).

Conclusion
So, what good does it do to know about the five stages of the business life cycle? One of the biggest advantages is simply psychological. Identifying what stage your business is in right now can help you understand that many of the problems and frustrations you’re experiencing are typical. In fact, all growing companies face them. So don’t worry, you don’t need to start taking anti-depressants.

Equally important, knowing what stage your business is in can help you determine what skills will be needed in order to reach the next level. If your company is struggling with the “classic” symptoms of one of the stages and is having a tough time breaking free, then it might be time to make an investment in new skills or start looking for external sources who can help. (Source: Principa)

Key Performance Indicators

One of the keys to effective financial management is to regularly monitor the “critical factors” that determine the success of your business. Financial statements aren’t great for this purpose because they can be complicated and time-consuming to prepare. Instead, what most companies need is a short list of key measures that they can look at on a regular basis (weekly or monthly) to see how the business is tracking. The way that many successful companies do this is through Key Performance Indicators (or KPIs for short).

What are KPIs?
KPIs are quick measures of your business’ overall health and well-being. They focus on aspects of your company’s performance that are vital to ongoing and future success. In essence, KPIs work like a report card to tell how the business is performing in crucial areas. As a result, they allow you to 1) quickly get a clear picture of what’s happening with the business and 2) get an early read on trends and future profitability (i.e. while there’s still time to take action that will influence the outcome).

Examples of KPIs
KPIs vary greatly by company and industry. For example, big retailers (like Starbucks and WalMart) regularly track “same store sales growth” as a measure of overall sales performance. A company like Proctor & Gamble might monitor “revenue and/or gross margin by product line” to track the performance of its different products and divisions. A company like FedEx might track “average delivery time” to monitor its overall efficiency. Other examples of widely-used KPIs include things like: revenue/expense ratio, average age of receivables, total order shipped, days inventory on hand, marketing expense as % of sales, etc.

Five Steps for Developing KPIs
Following is an overview of the basic steps involved in creating and implementing a basic set of KPIs for your company:

Step one: communicate the purpose of KPIs within the organization.
Realistically speaking, KPIs that are not owned and accepted by the workforce will not succeed. In order for KPIs to be successful, you must first work on creating the right internal environment and getting buy-in from key stakeholders (employees, managers, customers, etc.) These are the people who will be the ultimate drivers of the project’s success.

One of the biggest challenges that companies face in developing KPIs is overcoming team members’ fears and uncertainties. Most employees hold a long-standing suspicion of management-led forays into performance improvement (i.e. “Why are they doing this?” “Will the information be used against me?”). The best way to eliminate these fears is to explain the rationale for KPIs at the outset and include everybody in the process. When this is done openly and clearly, then all employees should at least believe that “we need to start doing things differently” and a core group of them should be very clear about what KPIs involve and how they will be used.

Step two: identify the “critical success factors” for your company.
These are the key areas in which things must go right in order for the company to remain competitive and succeed. Sometimes these factors are mentioned in the company’s business or strategic planning documents. Other times they haven’t been written down but the owners have an intuitive feel for what they are. Generally speaking, critical success factors come from one or more of the four broad areas that determine success for any organization: customer focus, financial performance, people, and innovation.

Tip
Most companies try to begin the KPI process by identifying critical success factors. However, the best time to start building trust about the use of KPIs is at the initiation stage- that is, the first time the idea is raised within the organization. Therefore, we can’t emphasize enough the importance of undertaking step one (communication) before step two in order to maximize the chance of success.

Step three: select and develop KPIs.
Once the critical success factors have been determined, the next step is to start defining and selecting KPIs. If the CSFs are clearly defined, then it is a fairly straightforward process to generate ideas for KPIs. Key employees are actively involved in this process and the work is often done in teams. In fact, major KPI breakthroughs usually do not come from management but from local teams and workgroups themselves (from the factory floor, so to speak). Management’s primary role is to provide the leadership and drive required to develop KPIs, and then provide the support and assistance needed to implement them.

Tips
1) Focus on practicality, not perfection. Encourage teams to pursue KPIs that provide valuable information but do not require inordinate resources to collect.
2) Look for leading vs. lagging indicators. Lagging indicators reflect things that have already happened (i.e. sales). Leading indicators are helpful in predicting future results (i.e. product quality, customer satisfaction). Leading indicators give management and employees the opportunity to act quickly when results aren’t being achieved and, as a result, impact the organization’s overall performance.
3) Work with a limited, manageable number of KPIs. Most companies need only a few measures, in no case more than a dozen. Too many KPIs makes it difficult to focus.
4) Persistence pays off. Virtually no team will achieve a perfect set of KPIs on its first or even second attempt. Keep experimenting and you’re bound to succeed.

Step four: implement the KPIs.
Once KPIs have been developed and people within the organization are involved in the process, the next step is to implement a system that regularly tracks and reports the information to key individuals (for example, the business owner). In many cases, implementing a KPI involves two people: an employee in the department where the activity is being measured (ex. manufacturing, sales, customer service) will be given responsibility for gathering the data, and the manager of that department will be given responsibility for achieving the target and reporting results to the owner. Some types of data (i.e. operational data) may be collected weekly or monthly from the company’s computer system. Other types of data (i.e. information about customers’ satisfaction with the organization) may only be collected annually through a survey. Some other useful methods for collecting data include checklists (i.e. to analyze results over a period of time), visual inspections (i.e. for quality), and focus groups.

Step five: monitor results and make improvements (i.e. take action).
In many respects, step five is the most obvious and the easiest to complete. The important thing is to monitor your KPIs regularly and compare them to past performance and established targets. If the desired results aren’t being achieved, then management must discuss what action to take. Potential actions might include: taking a closer look at the problem area, revising the target, making operational corrections, or changing the company’s strategy.

Conclusion
It is important to point out that the real goal of building a KPI system is not just to provide a short list of indicators that shows what’s happening with the business. Don’t get me wrong, that’s a wonderful thing. However, the greatest value of KPIs is that they can help you create a culture of continuous improvement and teamwork within your company. KPIs provide an opportunity to keep everybody (management, employees, suppliers) focused on what needs to be done in order to improve performance and keep the business on course. When teams understand where management wants the company to go, and how their job fits into the overall plan, they are enlightened and empowered to help the company achieve its objectives. And as most leaders of successful companies know, people are far and away the most important drivers of your business’ success. (Source: Principa)

Where Should I Keep My California Estate Plan?

Your California estate planning documents (the living trust, will, durable power of attorney for property management and advance health care directive) are usually on paper and you want to be sure that they stay safe and can be easily found when your family needs to find them. So, where should you store them?

There are people who store them in very odd places like their freezers. Its a better idea to keep your originals in a fire-resistant safe in your house and to notify friends and family where they are and how to get it open. Better yet, you can simply keep them in an accessible place where they can easily be found; if they are lost or destroyed before you need them, your estate planning attorney can provide you with another copy.

It is probably not a good idea to store your estate plan in a safe deposit box at the bank. Unless your friends or family are co-owners of the box (and sometimes even if they are), it wont be easy for them to open it if youre not there. Having the key isnt enough to get the bank to open it up for them the bank wants you to prove that you have the legal authority to require them to open it up. Think about it: the document granting your friends or family the right to act on your behalf as an executor is INSIDE the box, and until the box is opened, they cant prove that they have the authority to get the bank to open it (and so on).

Another concern about using a safe deposit box is those small keys to safeguard. Lost keys are create an expensive problem. When you rent a box from the bank, they give you two keys. The only way the box can be opened is when one of your keys and one from the bank are used at the same time. If you lose both of your keys, you have to pay the bank to drill out and replace the lock on the box.

For other information about California estate planning, call an estate tax attorney call Mitchell A. Port at 310.559.5259.

California Divorce And Estate Planning

I am often asked about restraining orders that become effective when a divorce action is filed in California and how those orders impact estate planning by my clients who live in Los Angeles County, Santa Barbara County, Ventura County or Orange County. I am also asked about the ability of my clients to do estate planning when they terminate their marital status before the final disposition of property.

When a dissolution action is filed, pursuant to California Family Code section 2040(4)(b), parties are prevented from creating a nonprobate transfer or modifying a nonprobate transfer that could affect the disposition of the property being transferred without having first obtained the written consent of the other party or a court order. Nonprobate transfers include revocable trusts, joint tenancies and beneficiary designations such as payable on death accounts, IRAs, profit sharing pension plans and life insurance.

As a result, a trust can be created but cannot be funded. While this will allow my client to immediately fund the trust at the conclusion of the dissolution action, this does not solve the problem of dieing during the dissolution action without an estate plan in place.

Therefore, if my client has the luxury of time, creating or modifying a revocable trust should be done before a dissolution action is pending. If this is not possible, then revoking any and all family trusts should be considered and an interim Will should be created. This will insure a disposition of my clients separate property and one-half of the community property to persons whom my client would want to receive the property should their death occur during the pending dissolution action.

Because people often choose to terminate their marriage before the final disposition of property, what about estate planning of such property once the parties divorced? The issue was that while restraining orders became effective upon the filing of the dissolution action, Probate Code section 5600 provides that spousal beneficiary designations are automatically revoked at the termination of marital status if an asset is a non probate transfer asset, as defined in Probate Code section 5000 unless there is either (1) clear and convincing evidence that the transferor intended to preserve the nonprobate transfer in favor of his or her former spouse, or (2) an order from the Court. Effective January 1, 2008, the California legislature resolved this question in California Family Code section 2337(c)(7A).

California Family Code section 2337 addresses the situation where a party seeks to terminate their marital status before the disposition of property and protections that may be put in place to protect the spouse that did not seek the early termination of their marital status. Section (c)(7A) now provides that the Court may specifically order a party, as a condition of their seeking to be divorced, to maintain the other party as a beneficiary of a nonprobate transfer of one-half, or upon good cause, all of a nonprobate transfer asset until a judgment is entered with regards to the property and the property is in fact distributed.

As a result of this new development, it is important that when my clients tell me they are divorced, I must inquire further. I need to know if they were divorced after January 1, 2008; and if so, if they have a final judgment on their property issues. If not, I need to see their Status Only Judgment of Dissolution to know if the Court imposed a California Family Code section 2337(c)(7A) condition on the termination of their marital status so I know how to proceed with their estate planning.

If you are contemplating a divorce and you are concerned about your spouse getting your estate upon your death because that is what your Will or living trust provides, then speak with me about resolving this issue. I am an estate planning attorney and can help.

California Inheritance Rules For Out Of Wedlock Births

For the purpose of determining inheritance when there is no Will or other instrument disposing of property (called intestate succession) by, through, or from a person, California Probate Code Section 6450 provides that a relationship of parent and child exists in the following circumstances:

(a) The relationship of parent and child exists between a person and the person’s natural parents, regardless of the marital status of the natural parents.

(b) The relationship of parent and child exists between an adopted person and the person’s adopting parent or parents.

California Probate Code Section 6452 says that if a child is born out of wedlock, neither a natural parent nor a relative of that parent inherits from or through the child on the basis of the parent and child relationship between that parent and the child unless both of the following requirements are satisfied:

(a) The parent or a relative of the parent acknowledged the child.

(b) The parent or a relative of the parent contributed to the support or the care of the child.

For answers to this and other probate questions, please call Mitchell A. Port at (310) 559-5259.

Innocent Spouse: What Are The Tests?

The IRS issued a revenue procedure which lists the various factors necessary to satisfy to obtain equitable relief as an innocent spouse.

If you have a tax problem, and believe that you maybe qualify for innocent spouse relief contact the Mitchell A. Port at (310) 559-5259.

Charitable Gift Annuity

California tax lawyers and many of their clients are familiar with the advantages of accelerating charitable bequests into charitable remainder trusts: income for life for beneficiaries of the clients choosing, capital gains tax savings, generous income tax charitable deductions and eventual support for important charitable causes. CRTs typically involve six-figure funding amounts, however, and come burdened with a variety of complexities and reporting requirements.

On the other hand, it is possible for clients age 60 and older to blend support for their charitable cause with a simple plan that will provide significant payments for life from gifts as small as $3,000 as well as large income tax deductions, potential capital gains tax savings and payments that are partly tax free. The technique that makes these benefits possible is a charitable gift annuity.

A gift annuity is a contract between a donor and a not-for-profit organization in which the donor exchanges cash or securities for an annuity for one or two recipients.

Immediate payment gift annuities have greatest appeal to older clients who are charitably motivated and wish to add a fixed income component to their portfolios. Both payout rates and deductions are high for this age group (the average gift annuity donor is age 77).

Gift annuities seem to have appeal for women. Women continue to live longer than men by roughly 5 years and so may have a greater interest in an income that a person cannot outlive.

Gift annuities also can be arranged to make payments for the lifetimes of two people, such as a husband and wife, brothers and sisters, parents and children or close friends.

Investors can use gift annuities to get investment profits and receive annual payments form the charitable organization that range from 5.5% to 10.5% depending on the age or ages of the persons receiving the payments. In general, 30 to 50% of a donors capital gain escapes capital gains tax completely. The remaining gain will be reported in small annual installments as part of the donors annuity payments and taxed at only 15% or possibly less.

Retirees who are unhappy with low CD returns can increase their spendable income with gift annuities and also enjoy payments that are partly tax-free. Capital gains savings are advantageous to investors who wish to move from equities into a fixed income arrangement.

Deferred payment gift annuities provide higher payout rates and larger charitable deductions, however, tax-free payments are smaller as a percentage of the annuity payment.

For other tax planning opportunities, call your tax lawyer. Call Mitchell A. Port at (310) 559-5259 for a tax consultation.

Free Tax And Estate Planning Information

The American Institute for Cancer Research has developed programs to assist California’s tax lawyers and financial planners in providing their clients with accurate and current information related to charitable gifts. The Institute appreciates the role that California tax attorneys and financial planning professionals play in the consideration of charitable gifts by AICR supporters.

In the AICR’s Estate Planners Corner: Services for Attorneys, Financial Professionals and Investment Advisors, it provides free publications and updates on a variety of tax and gift planning issues related to charitable gifts. Some of the publications include tax topics such as:

Minimizing Gift and Estate Taxes Through Charitable Trusts

Planning and Drafting Gifts and Trusts of Closely Held Stock

Selecting Assets for Charitable Gifts - Outright and in Trust

Supplementing Retirement Savings With Charitable Gifts

Charitable Remainder Trust Agreements Approved by the IRS

Minimizing Income Taxes and Transfer Taxes with Charitable Gift Annuities

Planning and Drafting Charitable Gifts and Trusts with Real Property

Planning and Drafting a Testamentary Charitable Remainder Trust

Planning and Drafting Charitable Lead Trusts

Administration and Investment Strategies for a Charitable Remainder Trust

For more detailed information on these estate planning topics, you are invited to call Mitchell A. Port, a tax attorney in Los Angeles, California, at (310) 559-5259.

California Law On Your Rights To Get A Copy Of A Living Trust

When you have a California living trust, generally the trust is revocable while you are alive. That means no one has the right to ask to see it and it’s contents remain private. However, when either you or your spouse dies, a part or all of your California living trust becomes irrevocable. Once your trust becomes irrevocable, it’s contents are no longer private and any beneficiary can request a copy of it. California Probate Code Section 16061.5(a) provides that:

“When a revocable trust or any portion of a revocable trust becomes irrevocable because of the death of one or more of the settlors of the trust, or because, by the express terms of the trust, the trust becomes irrevocable within one year of the death of a settlor because of a contingency related to the death of one or more of the settlors of the trust, the trustee shall provide a true and complete copy of the terms of the irrevocable trust, or irrevocable portion of the trust, to any beneficiary of the trust who requests it and to any heir of a deceased settlor who requests it.”

A California probate attorney may be helpful in this and other estate matters. For a consultation, call Mitchell A. Port at (310) 559-5259.

Wills And Trusts: No Contest Clauses

Last week, California’s governor approved a bill providing that on and after January 1, 2010, any instrument, whenever executed, that became irrevocable on or after January 1, 2001 the law regarding no contest clauses will change.

Existing law, in relation to wills, trusts, and other instruments, defines and regulates no contest clauses, which are provisions in otherwise valid instruments that, if enforced, penalize beneficiaries if the beneficiaries file a contest with the court. Existing law provides that a no contest clause in a will or a trust is generally enforceable and defines a “contest” and “direct contest” in this regard. Existing law provides that certain actions do not constitute a contest unless expressly identified in the no contest clause as a violation. Existing law exempts certain contests from the enforcement of the no contest clause under specified circumstances, including if there is reasonable cause to believe that instrument has been revoked. Existing law permits a beneficiary to apply to a court for a determination of whether a particular motion, petition, or other act by the beneficiary would be a contest within the terms of a no contest clause.

This bill, beginning January 1, 2010, would revise, recast, and clarify these provisions. The bill would limit the application of a no contest clause to specific contests. The bill would redefine “direct contest,” and would provide that a no contest clause may be enforced against a direct contest only when it is brought without probable cause, which the bill would define for these purposes. The bill would delete the provisions regarding the authority of a beneficiary to apply to a court for a determination regarding a no contest clause, as described above.

Scammers Use Fax and Email To Pose As IRS

In May and June alone, taxpayers reported almost 700 separate phishing incidents to the IRS.

The most common scams involve tax refunds and, this year, economic stimulus payments. The Internal Revenue Service cautions taxpayers to be on the lookout for a new wave of scams using the IRS name in identity theft e-mails, or phishing, that have circulated during the last two months.

The IRS has an interesting news article where the full details are available.

Here is a part of the article:

How Scams Work

“To lure their victims, phishing scams use the name of a known institution, such as the IRS, to either offer a reward for taking a simple action, such as providing information, or threaten or imply an unpleasant consequence, such as losing a refund, for failing to take the requested action.

“The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft.

“Typically, identity thieves use a victims personal and financial data to empty the victims financial accounts, run up charges on the victims existing credit cards, apply for new loans, credit cards, services or benefits in the victims name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scammers to act quickly and cover their tracks before the victim becomes aware of the theft.

“People whose identities have been stolen can spend months or years and their hard-earned money cleaning up the mess thieves have made of their reputations and credit records. In the meantime, victims may lose job opportunities or may be refused loans, education, housing or cars.”

Topics in the article also include:

Refund e-Mail Scam

Tax Court Scam

Economic Stimulus Payments Scam

Company Report Scam

Substitute Form 1040 Fax Scam

What to Do

Do you have other tax problems with the IRS or California tax authorities? If so, speak with Mitchell A. Port, a tax attorney in Los Angeles, about your concerns.

Tax Questions And Answers

The Internal Revenue Service has a general questions and answers section you can read in detail here. Each year the IRS updates the answers to reflect the latest changes in tax regulations. These questions and answers came from taxpayers like you.

Frequently Asked Questions

1. IRS Procedures

1.1. General Procedural Questions

1.2. Address Changes

1.3. Amended Returns & Form 1040X

1.4. Code, Revenue Procedures, Regulations, Letter Rulings

1.5. Collection Procedural Questions

1.6. Copies & Transcripts

1.7. Extensions

1.8. Forms & Publications

1.9. Injured Spouse

1.10. Name Changes & Social Security Number Matching Issues

1.11. Notices & Letters

1.12. Refund Inquiries

1.13. Reporting Fraud

1.14. Signing the Return

1.15. W2 - Additional, Incorrect, Lost, Non-receipt, Omitted

1.16. W4 - Allowances, Excess FICA, Students, Withholding

2. Filing Requirements/Status/Dependents/Exemptions

2.1. Filing Requirements

2.2. Filing Status

2.3. Dependents & Exemptions

3. Itemized Deductions/Standard Deductions

3.1. Autos, Computers, Electronic Devices (Listed Property)

3.2. Education & Work-Related Expenses

3.3. Gifts & Charitable Contributions

3.4. Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans, etc.)

3.5. 5. Medical, Nursing Home, Special Care Expenses

3.6. 6. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)

3.7. 7. Other Deduction Questions

4. Interest/Dividends/Other Types of Income

4.1. 1099DIV Dividend Income

4.2. 1099INT Interest Income

4.3. 1099MISC, Independent Contractors, and Self-employed

4.4. 1099 Information Returns (All Other)

4.5. Alimony, Child Support, Court Awards, Damages

4.6. Employee Reimbursements, Form W2, Wage Inquiries

4.7. Gifts & Inheritances

4.8. Grants, Scholarships, Student Loans, Work Study

4.9. Life Insurance & Disability Insurance Proceeds

4.10. Ministers’ Compensation & Housing Allowance

4.11. Savings Bonds

4.12. Tips

5. Pensions/Annuities/Retirement Plans (i.e., 401(k), etc.)

5.1. General/Taxability Issues including Distributions, Early Withdrawals, 10% Additional Tax, Defaulted Loans

5.2. Rollovers

5.3. Types of Plans

5.4. Plan Operations

5.5. Plan Design

5.6. Correcting Plan Errors

6. Social Security Income

6.1. Back Payments

6.2. Regular & Disability Benefits

6.3. Survivors’ Benefits

7. Child Care Credit/Other Credits

7.1. Child and Dependent Care Credit & Flexible Benefit Plans

7.2. Child Tax Credit

7.3. Credit for the Elderly or the Disabled

7.4. Hope & Life Time Learning Educational Credits

7.5. Other Credits

8. Earned Income Tax Credit

8.1. Qualifying Child Rules

8.2. Taxable & Nontaxable Income

8.3. Other EITC Issues

9. Estimated Tax

9.1. Businesses

9.2. Farmers & Fishermen

9.3. Individuals

9.4. Large Gains, Lump-sum Distributions, etc.

9.5. Penalty Questions

10. Capital Gains, Losses/Sale of Home

10.1. Property (Basis, Sale of Home, etc.)

10.2. Stocks (Options, Splits, Traders)

10.3. Mutual Funds (Costs, Distributions, etc.)

10.4. Losses (Homes, Stocks, Other Property)

11. Sale or Trade of Business, Depreciation, Rentals

11.1. Depreciation & Recapture

11.2. Rental Expenses versus Passive Activity Losses (PALs)

11.3. Personal Use of Business Property (Condo, Timeshare, etc.)

11.4. Sales, Trades, Exchanges

12. Small Business/Self-Employed/Other Business

12.1. Entities: Sole Proprietor, Partnership, Limited Liability Company/Partnership (LLC/LLP), Corporation, Subchapter S Corporation

12.2. Form 1099MISC & Independent Contractors

12.3. Form W2, FICA, Medicare, Tips, Employee Benefits

12.4. Form W4 & Wage Withholding

12.5. Form SS4 & Employer Identification Number (EIN)

12.6. Forms 941, 940, Employment Taxes

12.7. Income & Expenses

12.8. Schedule C & Schedule SE

12.9. Starting or Ending a Business

13. Aliens and U.S. Citizens Living Abroad

13.1. Canadian & U.S. Tax Issues

13.2. Exchange Rate

13.3. Foreign Income & Foreign Income Exclusion

13.4. Nonresident Alien - General

13.5. Nonresident Alien - Tax Withholding

13.6. Nonresident Alien - Students

13.7. U.S. Citizens Overseas

13.8. Other

14. Electronic Filing (e-file)

14.1. Age/Name/SSN Rejects, Errors, Correction Procedures

14.2. Amended Returns

14.3. Due Dates & Extension Dates for e-file

14.4. Forms W2 & Other Attachments

15. Magnetic Media Filers

16. Other (Alternative Minimum Tax, Estates, Trusts, Tax Shelters, State Tax Inquiries)

17. Individual Retirement Arrangements (IRAs)

17.1. Distributions, Early Withdrawals, 10% Additional Tax

17.2. Rollovers

17.3. Roth IRA

17.4. Traditional IRA

Are you in tax trouble with any of these federal compliance procedures? Talk to a professional: talk with tax attorney Mitchell A. Port at 310.559.5259.

Withholding Compliance

As a California business person, have you asked yourself any of the questions below concerning employees and their tax for which you may be responsible in part? The IRS has the answers to these question on its website at IRS.gov.

Here are the questions:

As an employee, what happens if the IRS determines that I do not have adequate withholding?

If an employer no longer has to submit Forms W-4 claiming complete exemption from withholding or claiming more than 10 allowances, how does the IRS determine adequate withholding?

If the IRS determines that an employee does not have enough federal income tax withheld, what will an employer be asked to do?

As an employer who has received a modification letter (letter 2808C) from the WHC program, do I wait for another 60 days to change the marital status and/or number of allowances per the modification letter?

I have been directed to lock in an employees withholding. What happens if I do not lock in the employees withholding as directed?

As an employer, after I lock in withholding on an employee based on a lock-in letter from the IRS, what do I do if I receive a revised Form W-4 from the employee?

Our employees can submit or change their Forms W-4 on line. How can I prevent them from changing their Forms W-4 after they have been locked-in by the IRS?

What should I do if an employee submits a valid Form W-4 that appears to be claiming an incorrect withholding amount?

What do I do if an employee hands me a substitute Form W-4 developed by the employee?

I heard my employer no longer has to routinely submit Forms W-4 to the IRS. How will this affect me as an employee?

What if I dont want to submit a Form W-4 to my employer?

What do I do if an employee hands me an official IRS Form W-4 that is clearly altered?

In the past, as an employer, I was required to submit all Forms W-4 that claimed complete exemption from withholding (when $200 or more in weekly wages were regularly expected) or claimed more than 10 allowances. What Forms W-4 do I now have to submit to the IRS?

Tax problems? Would you like tax help? Tax compliance a problem? Want to settle with the IRS? Call Los Angeles tax attorney Mitchell A. Port at 310.559.5259.

Watch for Spokespig at Lloyd Center Mall this Saturday
Watch for Spokespig at Lloyd Center Mall this Saturday
Contact:Carmel Wright, Public Relations Coordinator503-597-5478cwright@orcpa.org
FOR IMMEDIATE RELEASE:
Beaverton, Oregon, July 19, 2007Kids and adults will be encouraged to Feed the Pigsock away some money in their piggy …

Rules Regarding Independent Contractors

In todays free market world, more and more companies are hiring people as independent contractors rather than as employees. The big re