Two accountants were returning home from a client meeting. As accountants they took the cheapest seats on the plane, so they were each occupying the center seat opposite sides of the aisle. They continued their discussion of a tax problem. Finally, one of the passengers in an aisle seat offered to trade places so they could talk and he could sleep. After switching seats, one accountant remarked to the other that it was the first time a discussion about taxes ever kept anyone awake.
Archive for March, 2011
Tax Season Joke of the Week
March 30th, 2011
Cost Segregation may help reduce your client’s quarterly estimated payments
March 25th, 2011I know you have a lot going on right now, but I had to share this client experience with you.
I was meeting with a new client who owns their own building discussing their depreciation schedule. Their previous accountant had depreciated the entire building over 39 years and having met the guys from Cost Segregation Partners I knew we could do better.
I gave them the specifics and their analysis identified an additional $300k in additional depreciation in year 1 which continued into years 2 and 3. The cash flow benefit was astronomical and the client was delighted at the prospect (if not somewhat annoyed that his previous accountant had not discussed this with him).
If you have clients who have:
- Commercial property placed in service after Dec. 31 1986, with a cost basis of,
- At least $500K (excluding land) for an owned building, or
- Leased property with a minimum of $250k in leasehold improvements, and
- The entity is paying taxes,
Then you should give Cost Segregation Partners a call.
Speaking to Charles yesterday, he said there’s still time to reduce Estimated Quarterly Payments by leveraging Cost Segregation Benefits Projections. Charles said many CPA firms were using the Benefits Projections before engaging in the cost segregation project to help reduce their clients Extension/Estimated Quarterly Payments.
Charles shared a couple of other examples of recent cost seg work they had done for CPA firms:
Class A Office Building Placed in Service: June 2010
Cost basis: $20,484,823
2010 2011 2012
Additional depreciation: $ 1,687,936 $ 634,582 $ 444,035
Cash flow benefit: $ 725,812 $ 272,870 $ 191,051
Health Club (Leased) Placed in Service: July 2010
Cost basis: $566,000
Additional depreciation: $ 302,306 $ 29,847 $ 16,789
Cash flow benefit: $ 129,992 $ 12,679 $ 7,219
Urban Grocery Market Placed in Service: September 2006
Cost basis: $2,916,050
Additional depreciation: $ 414,799 $ 29,152
Cash flow benefit: $ 178,364 $ 12,535
From my own experience they turned the Benefits Projection Benchmark Report around quickly which we were able to leverage immediately. We even negotiated the initial analysis to be done for free for 2020 members.
If a client comes to mind, get in touch with Charles Sirro of Cost Segregation Partners. His phone number is 602-206-0522 and his email is Charles.sirro@costsegregationpartners.com.
Tax Season Joke of the Week
March 23rd, 2011An accountant is lying on the beach next to a lawyer. The lawyer comments that a fire has destroyed his office and as soon as he collects the insurance he will rebuild.
The account responds, “What a remarkable coincidence. A flood destroyed my office and I am waiting for the insurance proceeds, so I too can rebuild.”
After a few moments the lawyer asks: “So how do you start a flood?”
Chris Frederiksen’s Leadership Program is Back
March 22nd, 2011What is the Leadership Program?
The Leadership Program is designed to give participants the tools and skills required to be successful and productive. The program emphasizes skill development, not just theory.
Keeping your best and brightest will continue to be a challenge in the coming years. Succession issues also dominate the major concerns of practitioners. This program is designed to motivate and skill your future partners to step up to a greater leadership role.
The Leadership Program is an intensive 6-month program designed to give future practice leaders the skills they need to be successful. The program commences with a 2-day workshop at the end of which attendees will create a 180-day plan. The 180-day plan will be the basis for the monthly coaching program as we help attendees achieve their goals. The program concludes with another 2-day workshop and attendees sharing with the group their goals and objectives for the next 3 months to 3 years.
Only 12 participants will be accepted. This is the ideal group size to enjoy 1-on-1 learning as well as benefit from peer-to-peer learning.
Date: July 28-29 (session 2 will be held in January with the fional date to be confirmed)
Location: Los Angeles LAX (Venue to be confirmed)
The Leadership Program will cover:
- Key Issues in Personal and Firm Success
- What is Leadership in a CPA firm?
- Practice development
- Client development
- Communication as a key driver of success
- Selling skills
- Firm economics
- Firm management
- Enabling Technology
Who Should Attend?
Younger partners and managers on track to be partner are ideal candidates. Quality managers, who may not be aspiring partners, but are looking to improve their business development skills would also benefit from attending the Leadership Program. Attendance is not automatic. Potential candidates will be subject to a phone interview/ written questionnaire. This ensures the quality of the group remains consistent.
How much does the Leadership Program cost?
Members
First time attending firms: $2,950
Returning firms: $2,500
Non-members
First time attending firms: $3,450
Your investment includes course materials, monthly coaching, lunch, refreshments and an evening networking meal at each of the in-person sessions. Your registration does not include travel and lodging.
A 50% deposit is required at the time of registering. The remainder is due 30 days before the event.
What Attendees Are Saying:
“Great program! This really allowed me to come away with a strategic plan for how to enhance my business development throughout this next year.” G. Moore, Participant, 2010.
“2020 challenges you to think in creative and strategic ways that help drive business development. Their ideas and class facilitation create a definite culture of accountability and energy.” R. Polking, Participant, 2010
“They challenge you to do the unrealistic, to step outside your comfort zone and accomplish what you otherwise never thought was possible. You’ll learn how to properly address a crowd with confidence and shed those nerves and anxiety. The monthly coaching sessions alone are worth taking the course. The tools and techniques you learn in this program will make you more comfortable and confident when dealing with clients and prospects.” J. King, Participant, 2010
What Firm Partners Are Saying:
“We sent 2 of our top performers last year; one recently promoted director and a fast rising senior manager. They developed new skills, insights and focus really accelerating their growth. This is an excellent leadership program – well worth the investment of time and treasure.” G. Stanislawski, Managing Partner
“We sent one of our young managers to the program. The change in his self-confidence and his desire to progress within the firm have been nothing short of remarkable.” F. Hambalek, Partner
The next Leadership Program is scheduled for July and January.
Register Your Interest to Attend
If you have any questions about the program, please don’t hesitate to call us on 800 788 0190.
Refund Policy
Up to 30 days before the program start date: A full refund will be issued.
Up to 7 days before the program start date: 75% of the initial deposit will be refunded. The remainder is to cover hotel charges that we will incur regardless of attendance.
Up to the program start date: 0% of the deposit will be refunded. The deposit, less 25% can be applied to a future program.
Wooing Prospective Clients
March 21st, 2011When someone decides to change accounting firms and does not have an alternate lined up, they typically go through a two stage process.
- Which firms are suitably qualified?
- Which one do I prefer?
Making the first cut involves name recognition, reputation, referrals, advertised or communicated expertise, networking and maybe even reference checking. Once you have made the first cut , the above factors are then assumed. Unless you are the only firm with the requisite technical expertise you will competing with other more or less qualified firms. To show you are more qualified than the competition may not be productive at this point; the prospect has likely assumed all firms at the first cut are equally qualified.
The contest now shifts to interpersonal factors such as trust, comfort, and perceived helpfulness. Prospects see these factors as attributes of a person, not a firm.
Some suggestions to make the best impression:
- If you don’t feel that you have not developed a good rapport with the prospect, you are unlikely to win the engagement. Now is the time to bring in someone else to help improve your odds. This is favorable even if you have developed a good rapport with the prospect; much evidence favors group selling.
- Demonstrate you are reliable by religiously keeping all commitments you make. It doesn’t hurt to create some commitments – I’ll get that report to you this afternoon – to show you do what you promise.
- Demonstrate you care by:
- Doing your homework and customizing your approach.
- Discuss the prospects business at every opportunity. The objective is to get the prospect to talk about their concerns and challenges.
- Give the prospect a useful free – maybe a white paper, benchmarking report or checklist. Show them that your relationship will be a rewarding one.
- Give the prospect choices. Let them think they are in control and not entering into a dictatorial my way or the highway relationship.
- Listen to the prospect, take notes even. And respond intelligently. There’s nothing wrong with saying I don’t know the answer to that, but I certainly can find out.
- Finally, if you are not selected, stay in touch. You goal now is to be the firm waiting in the wings in case the winner stumbles.
Tax Season Joke of the Week
March 2nd, 2011A businessmen on his death bed called for his wife and said, “Jill, I want you to promise me that when I die, you will have my remains cremated.”
“And what,” Jill asked, “do you want me to do with your ashes?”
The businessman replied, “Put them in an envelope and mail them to the IRS. And write on the envelope, ‘Now you have everything.’”
