This year has been an exceptionally exciting one for awards for our firm! We have been recognized on three separate occasions as an award winning place to work, including ranking: #3 on the Best Accounting Firms for Women #10 on the Best Places to ...

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M&A Newsletter

McKonly & Asbury – What A Great Year!

This year has been an exceptionally exciting one for awards for our firm! We have been recognized on three separate occasions as an award winning place to work, including ranking:

#3 on the Best Accounting Firms for Women

#10 on the Best Places to Work in PA

#32 on the Best Accounting Firms to Work For

We are honored to have been awarded for our team’s dedication, hard work, and forward thinking approaches. McKonly & Asbury continually strives to be one of the best companies to work for, and we are proud to be publicly acknowledged for it.

A huge thank you to our amazing team members for all you do for our firm day in and day out. We wouldn’t be where we are today without all of you!

McKonly & Asbury rated a Best Accounting Firm for Women in 2017

We are thrilled to share the news that our firm was rated among the best Accounting firms for women in 2017!

This honor is bestowed by Accounting Today and Best Companies Group, who took a deeper look into the companies that were voted a 2017 Best Firm to Work For and sought out workplaces that were particularly friendly to women. The result is their inaugural Best Firms for Women list.

Kurt Trimarchi, Managing Partner with McKonly & Asbury, said “We are beyond excited to learn that McKonly & Asbury is recognized on this inaugural list! We believe our firm’s core values and innovative culture have a great deal to do with receiving this acknowledgement. As we approach our 45th year in service, our focus will continue to be on work-life balance, mentorship, and leadership roles for women in the workplace.”

To read more about this great recognition, please click here for the full article from the December issue of Accounting Today.

Accelerate those State 4th Q Estimated Tax Payments

As we inch closer and closer to tax reform, it is important that taxpayers maximize any benefits that they may lose with the potential reforms in 2018. One common deduction that is going away is the itemized deduction for state and local tax payments.

Under current tax law, taxpayers can take a deduction on their Schedule “A” (itemized deductions) for state and local taxes paid in the current year. Under both the House and Senate’s versions of tax reform, this deduction is going away and there is a possibility that any state and local taxes that you pay after December 31, 2017 will no longer be deductible on your personal income tax return.

Therefore, we are recommending that all our clients pay their state and local 4th quarter estimated payments by December 31, 2017 instead of on the due date, January 15, 2018. This will allow you to get a federal tax deduction for your 4th quarter state and local payments. If you wait until January to make the estimated payments, you may never get the deduction. This allows you to maximize your itemized deduction for state and local taxes before it is gone with tax reform.

Have more questions?  Please feel free to contact Charles Eisenhart, Tax Manager with McKonly & Asbury at CEisenhart@macpas.com.

Communication Breakdown – A Threat to Large Organizations

The purpose of organizational departments is to create specialized skills and processes to accomplish certain critical functions and to build efficiencies and expertise in accomplishing them. An organization’s appropriate implementation of departmental responsibilities creates core competencies that do not exist when individual employees seek to become a “Jack of all Trades.” Productive departments further help to quickly develop new employee skills and to develop and refine good processes and procedures.

One potential pitfall of a departmental structure is that at times this can lead to interdepartmental alienation, putting an organization at risk. When communication breaks down between departments, critical reconciliations and interdepartmental processes can be heavily affected. This can easily happen in a large organization when a department loses vision of their role in the organization as a whole. Departments need to maintain a close familiarity with their respective purpose and value-add to their fellow departments.

Often, this disconnect between a departmental alienation and organizational teamwork can be repaired with training and vision-casting from senior management. At times, there can be a disconnect between what the department produces and what other departments need in order to function efficiently. We regularly see where reconciliations between departments are hampered due to lack of ability to reconcile between departments. Departments need to recognize this flaw and take the appropriate steps to increase communication between departments.

Fraud can creep into an organization where communication between departments is poor. Fraudsters can and do use organizational communication breakdowns to their advantage, often at great cost to organizations.

If you need assistance increasing the communication or reporting between departments, please email me at dhammarberg@macpas.com.

Accountant Corner – Planning for 2018

Hello SS Franchise Partners!

As year-end is quickly approaching, many of you will be planning for 2018. Accurate and credible budgeting is one of the fundamental exercises necessary for a business owner to plan both for the upcoming year and laying a sound foundation for business strategic goals for the future.

Did you know that the Plus version of QuickBooks Desktop and QuickBooks Online has a budgeting feature where you can enter your budget and track your actual results throughout the year against your budget? Before entering a budget into QuickBooks however, our recommendation is to first create a budget in Excel as this allows you to easily make changes throughout the process. Once you are comfortable with the established budget, it can be entered into QuickBooks and can then be used to easily view budget versus actual results throughout the year. Click here to view a budget template that includes an example of a Soccer Shots tailored budget. You may also reach out to your preferred accounting provider, Lindsay Young at LYoung@macpas.com for the excel file.

A budget is all about estimates and expectations; therefore, it is key that you have a solid understanding of where the business is heading and what major items could arise in the upcoming year. Within the Excel budget template referenced above, there is a section titled Assumptions and Expectations outlining key questions and items to consider when assembling a realistic budget. Below are some highlights to consider as your review and prepare your budget:

  • Revenue assumptions and expectations should be based on enrollments expected for each season, and any changes in the charged registration fee per student.
  • When it comes to expenses, we recommend budgeting for your most significant expenses. Some expenses are fixed and are easy to estimate, while others are variable and depend on revenue or other results.
  • A variable cost is one that fluctuates based on the Company’s revenue levels. For example, royalties will increase/decrease as your revenue increases/decreases. Other examples of common variable costs include wages, school fees/cuts, and jersey costs.
  • Fixed costs on the other hand, stay the same regardless of the Company’s revenue levels. Expenses such as rent, insurance, advertising, and office expenses are some typical examples of fixed costs.
  • Because the nature of the Soccer Shots business is seasonal, often revenue (cash) is received at the beginning of the season, while expenses continue for several months after the cash was originally received. Thus, it is also very important to not only manage and review your profit and loss statements, but also analyze your cash flow on an ongoing basis to make sure your cash levels are sufficient to meet your operating needs.
  • The income statement tells one story of a Company’s financial health, but cash is critical to funding and managing business operations. A business can be quite profitable, but without adequate cash flow it will ultimately be unable to continue in business in the long term.  For this reason, we recommend that the budgeting process also include a cash flow analysis for the year. An example of a very basic cash flow analysis is included at the bottom of the Excel budget template previously referenced.

To learn more about the budgeting process and for assistance in creating a budget in QuickBooks, please contact David Blain (dblain@macpas.com) or Lindsay Young (lyoung@macpas.com).

 
Copyright © 2017 McKonly & Asbury, LLP. | info@macpas.com | 717-761-7910
415 Fallowfield Road, Camp Hill, PA 17011

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