Millions of Americans have hobbies such as sewing, woodworking, fishing, gardening, stamp and coin collecting, but when that hobby starts to turn a profit, it might just be considered a business by the IRS. Continue reading
Starting a new business is an exciting, but busy time with so much to be done and so little time to do it in. And, if you expect to have employees, there are a variety of federal and state forms and applications that will need to be completed to get your business up and running. That’s where a tax professional can help. Continue reading
Employer-sponsored retirement plans have become a key component for retirement savings. They are also an increasingly important tool for attracting and retaining the high-quality employees you need to compete in today’s competitive environment. Continue reading
Are you in the farming business or thinking about it? If so, you should be aware that there may be tax benefits available for you come tax time. Farms include plantations, ranches, ranges, and orchards. Farmers may raise livestock, poultry or fish, or grow fruits or vegetables.
Here are 10 things about farm income and expenses you should keep in mind this year. Continue reading
If you are self-employed, you normally carry on a trade or business. Sole proprietors and independent contractors are two types of self-employment. If this applies to you, there are a few basic things you should know about how your income affects your federal tax return. If you’re self-employed, here are six important tax tips you should know about: Continue reading
At some point, most small businesses owners will visit a bank or other lending institution to borrow money. Understanding what your bank wants, and how to properly approach them, can mean the difference between getting your money for expansion and having to scrape through finding cash from other sources. Continue reading
More than 52 percent of businesses today are home-based. Every day, people are striking out and achieving economic and creative independence by turning their skills into dollars. Garages, basements, and attics are being transformed into the corporate headquarters of the newest entrepreneurs–home-based businesspeople. Continue reading
When it comes to creating a budget, it’s essential to estimate your spending as realistically as possible. Here are three budget-related errors commonly made by small businesses and some tips for avoiding them. Continue reading
Lahrmer & Company LLC welcomes a trio of new additions to our office as we kick off 2015. We’ve taken on a new employee, expanded our office footprint in our existing location, and welcome the staff of Gateway Financial LLC to our office space.
Jami Aquino will be joining our practice this January, having previously worked at First Merit Bank for over 14 years and gaining valuable experience the past two years at a small accounting firm. She specializes in small business accounting and cash flow management for owner-managed businesses. Jami received her degree from Kent State University, and enjoys reading, skiing, scrapbooking, and photography. Jami will be a great addition during income tax season. And, a first for our organization, she will be here throughout the year for the thriving small business accounting side of our practice.
We are also pleased that Leslie Lahrmer, CPA, will once again be working the tax season for our office two days per week.
These are not the only fresh faces you will see around the Lahrmer & Company office. We’ve enhanced the level of service we’re able to provide to our clients by welcoming Todd Pouliot and his staff to our location. As the President of Gateway Financial, Todd is an Accredited Investment Fiduciary and Investment Advisor who works comprehensively with clients to find clarity with their long-term wealth management goals. Todd is also a Kent State alum, and is an active member of the Nordonia Hills Community. Learn more about Todd and Gateway Financial at http://www.gatewayspc.com.
Our working relationship with Gateway Financial will enable us to immediately leverage each other’s knowledge and expertise for our client’s benefit from two different, yet complementary angles. We are enthusiastic to have the additional depth of knowledge from Todd Pouliot and his staff from Gateway Financial under the same roof.
Speaking of that roof… it has expanded! We have expanded our office to include the adjoining suites just south of our existing office. You may encounter some of the end of the construction phase if you are an early filer this season, so please pardon our dust. Our phone numbers, email and mailing address have remained the same.
And while our web address is also the same, we were pleased to launch our newly redesigned website. Check us out at http://www.lahrmercpa.com.
2015 is going to be a great year and we are thrilled to call you our clients!
Most entrepreneurs eventually think about selling their businesses, whether as a prelude to retirement or to pursue other activities. In doing so, they often underestimate the effort required for a satisfactory outcome and overestimate the value and salability of their enterprises. If you’re contemplating selling, here are some common mistakes from the small business accounting experts at Lahrmer & Company, LLC to avoid:
1. Overestimating the value of your business
Your price should be based on the fair market value of the business in its current form. Buyers won’t care about the work you’ve put into building your business or your unique vision for its future.
2. Failing to account for the nature and make-up of your business.
The values of most businesses proceed from a mixture of variables. If your business includes significant equipment, real estate, intellectual property, or other such assets, their values should be separately established before being factored into the overall price. If you’re selling a service or professional firm, much of its value may depend on the experience and skills of your managers and employees. In such a case, the price may vary according to the expected retention of key individuals.
3. Failing to base your sale price upon independent appraisals.
Even if you think you know the value of your business, you should obtain two or more outside appraisals from professionals familiar with your industry. If the appraisals conflict with your opinion, they’ll provide a much-needed reality check. If they confirm your opinion, they’ll become a useful sales tool.
4. Not hiring a professional business broker to handle the sale.
Owners are often too personally invested (and/or eager to sell) to effectively negotiate sales of their
businesses. A broker familiar with your type of business will know what issues are important to buyers and what characteristics to emphasize or de-emphasize, without becoming emotionally involved.
5. Neglecting to work with the buyer to ensure a smooth transition.
Nobody likes being thrust into unfamiliar circumstances without preparation. Notifying your managers, employees, and customers in advance and doing all you can to allay their concerns will serve your own best interests, as well as being the honorable thing to do. Discontent on the part of any of the affected parties could result in conflicts, reduced revenue for the buyer, withheld sale payments, and litigation.
6. Being unwilling to help finance the sale.
If you’re unwilling to take back a note, your sale price is limited to the buyer’s cash and ability to obtain outside financing. At best this could limit the number of potential buyers, and at worst it could limit your sale proceeds. (Conversely, if you finance too much of the sale price, you’ll increase the risk of default.)
Selling your business is too important to attempt without professional help. If you’re considering selling, call us at Lahrmer and Company for an appointment to help formulate your plan.
Lahrmer & Company LLC
9821 Olde 8 Rd. Ste L
Northfield, OH, 44067-1456
Phone: (866) 474-1238
Fax: (216) 393-0465