Concierge CPA's online newsletter fro April 2018
April 2018
8221 Brecksville Rd, STE 205 Brecksville, OH 44141
Borbala@ConciergeCPAs.com
(440) 340-1030
ConciergeCPAs.com
I Was 9 Months Pregnant and the Government Knocked on the Door …
It was a cold winter. We had just moved into our new corporate offices in Brecksville, and I was nine months pregnant with baby No. 4. Tax season had just started. The phone rang, and the female voice on the other end of the line introduced herself as Jan Conrad. She toldme the name of the agency she represented, but I failed to catch it. She was asking for a meeting inmy office. “Uh-oh, am I in some sort of trouble?”I thought. When we met in person, she introduced herself as the new Cleveland director of a new organization calledWomen’s Business Centers of Ohio, funded in part by the SBA (U.S. Small Business Administration) and ECDI (Economic Community Development Institute). My face muscles started to relax. Jan was looking for successful entrepreneurs to serve on the WBC advisory board, and somebody mentionedmy name to her. While she was sitting onmy velvet“financial therapy” couch, she revealed tome her dreams and hopes for this organization, where hundreds of small businesses would be able to come for one-stop coaching, mentoring, support, and access to capital. It turned out that joining theWBC and serving on its advisory board was one of the best decisions I ever made. I attended boardmeetings every month, which ledme to get to know some wonderful female business and community leaders in the Cleveland area, a good number of whom I became friends with. Membership grew rapidly, and the staff was busy providing coaching andmentoring. In addition to paid staff, a professional advisory network was formed with lawyers, accountants, andmarketing professionals volunteering their time to coachmembers one-on-one. I signed up to give complimentary consultations tomembers who needed specific tax planning. I wanted to address questions related to business and financial management. So far, I’ve conducted 92 of these two-hour consultations. That adds up tomore than four workweeks!
I just love these meetings. They give me the opportunity to get to know new business owners and share with them best practices for financial management so they canmake sound decisions in their business. (I also appreciate that the members come tomy office and I don’t have to drive to the downtownWBC offices tomeet with them.)
Think Tank Tuesdays andThursdays are also favorites of mine. I am fortunate enough to have the opportunity to conduct a couple of these workshops every year, and the members who come for it are just amazing! Usually, I talk about“learning how to be the‘chief ecosystemofficer’of our business.”We also talk about excuses we tell ourselves for not acting as a CEO, how to reverse-engineer our financial goals, and why knowing our numbers is the only way to build a legitimate business. Most of the time, the Q&A at the end goes on for hours! Usually, members are surprised that, as a CPA, I’mnot going to talk about income statements, balance sheets, and how to calculate your taxes. But then they realize I’mnot their father’s CPA. I believe in looking at the financial side of a business from a holistic point of view: marketing, sales, client service, financials, personal goals, and preferences— it’s all a big ecosystem. If you live in northeast Ohio and run a small business, do yourself a favor and check out what theWBC and ECDI offer to both female andmale entrepreneurs of all stages. And if you see me at one of their events, be sure to come up and say hi!
My upcomingWBC workshops are scheduled for June 28, Aug. 21, and Nov. 15.
To learnmore about this wonderful organization, check outWBCOhio.org.
- Borbala Banto, CPA
P.S. I almost forgot tomention that the“government”knocked onmy door again in May 2016. Fortunately, it was not bad news that time either! The SBA selected Concierge CPAs as the“Women-Owned Small Business of theYear in Northeast Ohio.”The picture in this article was taken at the awards ceremony.
1 (440) 340-1030
BORBALA’S SCHEDULE
Weekly Live Roundtable Calls
Client Advising and Coaching Days
Thursdays at 2 p.m. EDT: • April 19 • April 26 • May 17 • May 24 Register at www.BeyondTheNumbers.Club
• April 18 • April 25 • April 30 • May 7
• May 16 • May 22 • May 29
Schedule at borbala.acuityscheduling.com Prospective client inquiries: Borbala@ConciergeCPAs.com
Client of the Month: HEATHER RHOADES Heather is a mother and wife, a successful small-business owner, an adoptive parent, an expert gardener, a cancer survivor, and since last fall, a Ward 5 council member in her home city of Bedford, Ohio. For the past 11 years, Heather has successfully grown her own online business, GardeningKnowHow.com. It started as a tiny website that she bought from her brother for just $50 over a Thanksgiving dinner. Today, it’s a blogging powerhouse where she and her team have answered over 50,000 direct questions about gardening. Over 90 million people visit the site every year — now that’s an amazing accomplishment! But you really have to get to know Heather to see how truly amazing she is as a person. Heather and her husband have been together nearly 20 years, and they have five children, two of whom were adopted out of the Cuyahoga County foster system. Heather’s husband, Jeff, served in the National Guard Army Corps of Engineers and was deployed for a year in Afghanistan. During that time, Heather held down the fort at home and ran her business. I don’t know where Heather gets her energy from, but she loves her community and has an honest and burning desire to change it for the better. When she had the opportunity to move out of Bedford to a more prestigious suburb, she decided to stay in the community. She bought and fixed up a historic Victorian house on the main street of Bedford. She is involved with the Bedford Garden Club and volunteers at the local food bank, at Bedford Schools, and at various nonprofits.
Last tax season, Heather had a tax appointment at the Concierge CPAs offices. That same morning, she found out she had stage 3 breast cancer. She still kept her appointment, but needless to say, there were more tissues and hugs that morning than talk about taxes. The way Heather fought the cancer was awe-inspiring, but I was even more impressed to learn that, last summer, she decided to run for the Bedford City Council. Who does that while battling cancer? Not to mention the fact that she was running her business and caring for her family at the same time. Heather ran a positive campaign and had a landslide victory in her ward. Since then, she’s been so busy changing things for the better that you’d think she was the mayor of the town. Heather, we’ve loved working with you these last three years, but we consider it an even bigger privilege to get to know you as a person, as a fighter, and as an advocate for your kids, family, and community! You inspire us every day, and you’re an example worth following for everyone who meets you. Thank you, and keep up the good job!
–Borbala Banto, CPA
2 ConciergeCPAs.com
Why Did Nobody Warn Me About This? We’ll Help You Avoid Tax Surprises! Our first-ever client at Concierge CPAs came to us after her previous accountant surprised her on April 15 with a $17,000 IRS tax bill. This happened during a year when her business really took off; unfortunately, her accountant wasn’t proactive and didn’t offer to meet with her during the year to run current year tax projections. I’m sure most of us would be shocked by a bombshell like an unexpected $17,000 IRS bill. Unfortunately, I’ve heard countless similar stories over the years, and the question remains the same: “Why did nobody warn me in advance?” The answer is simple. Most tax preparers are good at summarizing what happened during the previous year, but few take the time to sit down and talk to you about what is going on in the current year and what to expect in the future. 1. We meet (in person or virtually) at least once per quarter to talk about the current tax year. We look at the actual income and expenses up to that point in time (so it’s very important that you have accurate monthly bookkeeping). Together, we estimate the profit for the remainder of the tax year. 2. We combine your forecasted business profit with your personal tax information, adjusting it for any changes, so we can calculate an accurate estimate of the taxes that will have to be paid. Knowing what to expect isn’t the only advantage of this process. The real benefit is that you can be proactive and reduce the tax liability before the year is over. There is no CPA that can go back in time and change the past after Dec. 31, so you have to be proactive and think about reducing your taxes during the current year. Now, with the new tax law, preparing estimates during the year is even more imperative than before, as the tax rates were changed, expense categories were eliminated, and new deductions were introduced for small-business owners. This process is pretty much the same as preparing your tax returns 4–5 times a year. So, over the years, we developed systems and best practices to help our clients avoid unpleasant tax surprises. Here’s what a proactive tax engagement should look like:
Spring is the height of asparagus season. This dish, which features the crunch of breadcrumbs and a refreshing splash of lemon, is the perfect way to highlight the natural flavors of the vegetablewithout overwhelming them. Roasted Asparagus With Lemon Breadcrumbs
INGREDIENTS • 2 pounds asparagus • 1/3 cup plus 2 tablespoons extra-virgin olive oil • Kosher salt • Freshly ground pepper • 2 garlic cloves, minced
• 1 cup panko breadcrumbs • 1 tablespoon flat-leaf parsley, chopped • 2 teaspoons lemon zest • Juice of one lemon (not packaged lemon juice) a small skillet over medium heat. Add garlic and cook for 1 minute. Add breadcrumbs and cook for 5 minutes, stirring frequently. Remove from heat and fold in parsley and lemon zest. 3. Transfer asparagus to serving platter, drizzle with lemon juice, and top with breadcrumb mixture.
INSTRUCTIONS 1. Heat oven to 425 F. Toss
asparagus with 2 tablespoons olive oil and season with salt and pepper. Place on baking sheet and bake for 20–26 minutes, turning asparagus halfway through.
2. When asparagus is nearly done, heat remaining olive oil in
If you would like to become proactive and start getting tax projections in 2018, give us a call at (440) 340-1030!
3 (440) 340-1030
8221 Brecksville Rd, STE 205 Brecksville, OH 44141
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
(440) 340-1030
INSIDE I Was 9 Months Pregnant and the Government Knocked on the Door … Page 1 Borbala’s Schedule Page 2 Client of the Month: Heather Rhoades Page 2 We’ll Help You Avoid Tax Surprises! Page 3 Roasted Asparagus With Lemon Breadcrumbs Page 3 Tax Cuts and Jobs Act of 2017 Page 4 On December 22, 2017, the president signed theTax Cuts and Jobs Act of 2017 , the most sweeping change to the tax code in 31 years. What effect might the new lawhave on the amount you pay? The Act focuses most of its effort on corporate taxes, with a new flat rate of just 21 percent and various provisions designed tomake American businesses more competitive globally. The law alsomakes several moves in the direction of true“tax reform,”which involves eliminating deductions in exchange for lowering rates. However, the new law gets us nowhere near the dreamof filing taxes on a postcard. Are you curious what might happen to your taxes under the newproposal? Call us at (440) 310-1033 for a free tax analysis.We’ll tell youwhere your opportunities lay and workwith you to takemaximumadvantage of any new rules!
ConciergeCPAs.com
Borbala@ConciergeCPAs.com
Tax Cuts and Jobs Act of 2017:
WHAT’S IN IT FOR YOU?
INDIVIDUAL TAXES
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Lower tax rates, cap at 37 percent
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Boost standard deductions to $12,000 Single/$18,000 HoH/$24,000 MFJ
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Eliminate personal exemptions
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Increase ChildTax Credit to $2,000 per child with a much higher phase-out than before
fromproprietorships, partnerships, and S corporations). This is big!
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Limit state/local tax deduction to $10,000
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Allow immediate expensing for non-real estate capital assets
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Limit mortgage interest deduction to $750,000 of loan value (for new loans)
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Eliminated the“entertainment expense” deduction, and there is a debate whether that includes business meals as well. Stay tuned as we learnmore about this!
CORPORATE/BUSINESSTAXES
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New 20 percent deduction for“qualified business income”(pass-through income
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