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Welcome
to the 1st
edition of The Rodman Report! The
entire team at Rodman & Rodman CPAs hopes that
you'll find the information contained here helpful
for you. The intent of the Rodman Report will be
to make you aware of news and information that we
think will benefit you, our clients and friends.
Included will be breaking tax issues, tips and
news that we think deserves special attention.
We'll make you aware of any special events we are
having. You'll see below in this issue that in
September we begin our Fall Seminar Series. It is
free
and will cover a variety of relevant and important
issues to small business owners and individuals.
From our Accounting IT Software Services division
we'll have the latest news and tips for QuickBooks
and Microsoft Small Business users. From our
Strategic Services division we'll have tips,
thoughts and ideas on how to run your businesses
more profitably. In all cases, we'll try to make
this newsletter a useful tool for you to use to
help you in your daily challenges in small
business.
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Federal
Government Passes Comprehensive Law
The
President recently signed into law the most
sweeping pension legislation in 30 years. We are
still absorbing The Pension Protection Act of
2006 but here are some of the highlights:
- A
two year window (2006 & 2007) where IRA
distributions can be directed to a qualified
charity, free of tax.
- After
2007, taxpayers can make direct rollovers from
qualified plans to Roth
IRAs
- Makes
permanent a number of the recent retirement plan
and IRA liberalizations that were set to sunset
after 2010
- Allows
nonspouse designated beneficiaries to make
rollovers of inherited amounts in qualified
plans or IRAs to their own
IRAs
In
addition, the Act puts forth a number of
charitable reforms which will tighten the rules
on record-keeping and on deducting contributions
of clothing and household items. We will be
discussing these changes with our clients as
year-end approaches.
For
further information...
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Free
Seminar - September 28th!
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The
Rodman Fall Series Kicks Off
Rodman
& Rodman is proud to present the Fall Seminar
Series which kicks off on September 28th, 2006
at 7:30 a.m. The subject will be
Protecting
Your Small Business. Two significant
threats exist for small businesses today. The
first is fraud via employees. Billions are lost
each year from employee theft of one type or
another. Larry Rice, Director
of Strategic Consulting at Rodman &
Rodman will provide some practical
advice to help prevent this problem from
occurring to you. The second threat to small
business is one that has leapt to the forefront
of issues confronting small businesses in the
computer age. The threat to your computer data.
Through viruses, power loss, hacking and
spamming, someone doesn't have to be within the
confines of your walls to wreak havoc upon you
and your business. Peter Root of
Symantec, the makers of the
industry-leading Norton line of products will be
on hand to help you steer clear of this growing
threat. The seminar will begin at 7:30 am with a
continental breakfast followed by the seminar at
8:00 am which will conclude promptly at 9:00 am.
There will be time available to ask questions,
assuring that you will get the most out of the
material provided. The seminar will be held in
the Rodman & Rodman conference room. Seating
is strictly limited. Please contact
Jen
Reading at Rodman
& Rodman to register. Don't wait! Call
today!
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Business
Strategies For Entrepreneurs by Larry Rice
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Capital
Equipment Financing - Simplified!
A
question I am asked often relates to the
purchase of capital assets. Capital assets would
include things like a building, machinery and
equipment, furniture, automobiles etc.
Essentially we're speaking about depreciable
assets who have a lifetime that well exceeds one
year.
The question I am asked is "Should
I pay cash or finance? If I finance the
purchase, over what period of time should I
spread the payments out?"
There is a
pretty simple rule of thumb: Finance capital
purchases over the period of time, when
possible, that you expect the capital asset to
be useful to the business. The idea is that to
best manage your cash flow, now and for the
future, you should make every effort to match
the cash inflows (revenue) that an asset
produces over a period that is similar to the
outflows (payments) that you make.
If you
pay cash for a capital asset, you may run into a
cash crunch at some point in the future and find
yourself in deep trouble. You'll own the capital
asset free and clear all right, but without
cash, you may not have a business to use it
in.
On the other hand, if you have a
capital asset that has long since been scrapped
but you are still paying for, you eventually
will run into a similar and dangerous cash
shortage. It is on this same theory that running
credit card debt up to finance food, clothing,
etc. is going to get you, as an individual, in
trouble.
I can appreciate some business
owner's unwillingness to carry debt, but when it
comes to the major assets in your business, you
are much smarter to pay for those assets over
the time those assets are useful. If you find
yourself paying for long-since-gone assets, you
need to reevaluate your spending
decisions.
Feel free to drop me a line at
larry@rodmancpa.com if you have any
questions.
All the best,
Larry
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