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FALL 2013

F E A T U R E

S T O R Y

How the Government Shutdown HURT SMALL BUSINESS by Renee Fellows

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F E A T U R E

S T O R Y

Trickle-down economics isn’t just for the Reagan era. Small business is keenly feeling the effects of the 16-day government shutdown in a multitude of ways. Government contracts and no payments means employees with little or no work are still taxing small business payroll without any return on that investment. While the shutdown was relatively brief, that lost revenue can impact a small business for months

or even years to come. Most small businesses have two to three weeks of additional revenue on hand. Many small businesses will be forced to turn to high-interest, short-term borrowing options to help them prepare for the busy holiday rush.

Waiting On Loans

resume. According to a report in the Wall Street Journal, SBA officials have indicated that small business lenders may be able to refinance loans written during the shutdown to SBA-backed loans once the government reopens. Some 250 SBA loans totaling approximately $193 million are approved each day.

Small businesses in the process of applying for SBA-sponsored loans are finding themselves waiting in queue with no telling how long until they will hear if they have qualified or when they will see dollars in their bank accounts. Additionally, with the closure of most government offices, those loans at local banking institutions may still be waiting on IRS detailed information in order to approve the loan. “It’s not just SBA loans, it’s the conventional small-business loans, too,” Rohit Arora, co-founder and chief executive of Biz2Credit, an online marketplace that connects small business owners to lenders, said in a Washington Post interview. Without IRS verification, small businesses will only be able to get higher rate loans if they have an existing relationship with the lending institution. The worry is that desperate business owners will resort to exorbitantly high interest rate lenders like merchant cash advances who can charge up to 100% of the loan on short terms of six or eight months. To add salt to an already sore subject, when the SBA does reopen it will face a long line of disgruntled applicants who were promised waived guarantee fees on 7(a) loan amounts and won’t be receiving them. The General Small Business 7(a) guaranty waive program was part of a package of small business incentives that were included in President Obama’s 2014 budget. With Congress and the Senate voting in a Continuing Resolution (CR) and not approval of the budget, last year’s amounts will be continued with no new programs funded. The CR will leave the 7a program unfunded and waiting in the wings for an approved federal budget. What will a CR cost small businesses in the 7a loan program? The normal fee for businesses applying for $150,000 or less is 2 percent of the total loan amount which totals $3,000 – not small change for a small business. Anticipated SBA backlogs are projected to be six to eight weeks once operations

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Unemployed & Tight On Cash Nearly 800,000 federal workers were furloughed. With no paycheck and no certainty about when they would see their next paycheck, these workers were holding tight to the cash they had on hand. In towns where government plays a large employment role, the fiscal crunch hit not only the government workers, but also the small businesses who served them each day. From restaurants to auto repair businesses, there was a huge slowdown in business walking through the door. “Hundreds of thousands of Americans, a lot of whom live around here, don’t know when they are going to get their paycheck, and that means stores and restaurants around here don’t know if they will have as many customers,” President Obama said during a speech at a small asphalt plant in Rockville, MD later adding that “companies like this one worry that their businesses continued on next page.... are going to be disrupted.”


A Blow for Consumer Confidence Just when the economy was making an upward turn, the shutdown put a huge damper on consumer confidence going into the biggest selling season of the year. On top of the overall consumer uneasiness, average working class Americans found that their sole source of childcare through one of the nation’s approximately 1,600 Head Start operations were threatened. Working parents of some 87,000 Head Start children struggled to find alternative care in order to reduce losing household income. Place these difficulties right in the heart of the retail selling season and you had a recipe for financial uneasiness and potential disaster if Congress didn’t take action. One unintended bonus of the shutdown is that while there are fewer motorists on the roads, the demand for gasoline has decreased causing a slow drop in the price of fuel. AAA predicts that as refineries switch over to less expensive winter blends and a continued reduction in demand that drivers will continue to see lower prices well into the end of 2013. If you think just businesses are suffering, consider this: the Amundsen-Scott South Pole Station in Antarctica is facing difficult choices as budgets are being frozen and the very short

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research season is being put on hold. With just a handful of staff to man the station, the future is looking bleak for springtime global-impacting research even though the NSA has promised to feed, house and protect the U.S. interests and researchers still at the station.   Please be advised that based on current IRS rules and standards, any advice contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty that the IRS may assess related to this matter. Any information contained in this article, whether viewed or subsequently printed, cannot be relied upon as qualified tax and accounting advice. Any information contained in this article does not fall under the guidelines of IRS Circular 230. ©2013 Professional Association of Small Business Accountants


FALL HAS SETTLED IN and here we are looking toward the end of another year. Can you believe it’s October? Before you know it, we will be knee deep into another tax season.

PRESIDENT’S MESSAGE Matthew Patrick

I want to extend my appreciation to the National Training Planning Committee for another great meeting. We had record attendance in St. Louis last month – 125 people! The sessions were full of great information for our staff members and the office visits were fun and lively. A special thank you to Rick Dopuch of Business in Balance, Charles Tzinberg of Tzinberg & Associates, and Kurt and Mindi Rickhoff of Rickhoff & Associates, for opening up your offices to all of us. These three offices were so welcoming and accommodating to our very large group and we appreciate everything they did to make our visits fun. We still have a lot to look forward to before the year is over. Our Fall Management Conference is going to be full of great information, including a full learning track

on how to add payroll processing to your practice. In addition, we’ll have a number of great breakout sessions, an office visit hosted by Carol and Steve Ford of Business Accounting Services, and keynote sessions from Ed Hastreiter of EWH Small Business Accounting and Vicki Halsey of the Ken Blanchard Companies. For more information on the agenda, look inside this newsletter or online at http://members. pasba.org. Don’t forget to mark your calendars for our Spring Marketing Conference in Puerto Rico! The dates for the conference are May 12-15, 2014 at the Intercontinental San Juan. Start making your plans to attend and stay a few extra days. We’ve been told the weather in May is perfect and you won’t want to miss out on another great PASBA conference. Thank you for the opportunity to serve you this year. I am impressed at all of the ways that I have seen members involved in moving this organization forward. I look forward to seeing you all in Atlanta!

1 Get Trained on Glue™: Get up to speed on

SwipeClock’s newest platform, Glue. Attend a variety of classes on features, benefits and opportunities, including upcoming PPACA requirements. 2 The Canyons Resort - Come to Ski!

Experience the "greatest snow on earth" at The Canyons Resort, one of Utah's premier ski resorts and location of our 2014 conference. 3 Special Hardware Offers: Get special offers

available only to our conference attendees! 4 Get Inspired on How to Sell: Get tips,

tricks, best practices, tools, and ideas from SwipeClock and other top resellers in the field. 5 SwipeClock Entertainment:

Unlike anything you have ever experienced, our entertainment is a must-see. Come for the Royal Soirée – and for another unforgettable SwipeClock conference classic.

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6 Live Training: Classes built for Sales,

Operations and much more, along with RCH credits for you and your staff! 7 See the Product Road Map: Learn about the

future of SwipeClock product development and new opportunities in your marketplace.

8 Networking: Get to know other resellers and

find out what they’re doing to succeed. Enjoy “First-Class Service” and entertainment while meeting vendors who can help expand your business.

9 Adventure in the Rockies: Enjoy all that

Park City and the surrounding area offers! Skiing, Spa treatments, Historic Main Street Park City (the venue of the 2002 Winter Olympics and Sundance Film Festival) and so much more! This is the perfect location to take a couple of extra days to vacation! 10 Get Inspired! Grow your business and get

inspired about offering automated timekeeping solutions to your clients!


Congratulations to DAVID LUCIER

PASBA MEMBERS IN THE NEWS

for spearheading and launching the Rhode Island Society of CPAs new Leadership Program for its members. Acknowledging a growing need to cultivate strong leaders within the business community, the program is designed to provide young CPAs with real world leadership training. The training begins with an introductory course, geared toward young RISCPA members. Introductory classes will be followed with more specific topics, including: Leadership in Your Community; Sales Leadership; Marketing Leadership; and Management Leadership. The program reflects a national movement in education and business. Great work, David! Source: http://www.cpapracticeadvisor.com/ news/11117894/rhode-island-cpas-kick-off-leadershipprogram?utm_source=CPA+Firm+Management+Advisor &utm_medium=email&utm_campaign=CCSN130815003

MATTHEW PATRICK PRESIDENT Patrick Accounting & Tax Services, PLLC mpatrick@patricktax.com 901.755.5858

BARB GAY PAST PRESIDENT Watson & Company, Inc. barb@watsonaccounting.com 303.368.9912

BRIAN PAULSON PRESIDENT-ELECT CSI Accounting Services brian.paulson@csiaccounting.com 952.927.4011

JOHN ESTESS TREASURER Estess & Associates, LLC, CPAs john@estesscpa.com 504.433.5122

BRENT MOTL SECRETARY Charles J. Motl, CPA & Associates brent@charlesmotl.com 847.426.2100

TOM BOWMAN Bowman & Company, CPA, PC tom@bowmancpa.com 410.381.8121

STEVE SCHNEIDER, STEVE GIFT, and VAN BALLANTYNE were recently quoted for an article

Know a PASBA member in the news? We want to hear about it! Contact PASBA Central Office at director@pasba.org.

published on CNN Money online for an article regarding an IRS crackdown on small businesses that may be underreporting income based on unusually high portions of reported sales. The author of the article reached out to PASBA members specifically based for their focus on small business. Source: http://money.cnn.com/2013/08/19/smallbusiness/ irs-crackdown/

CARL CORNELIUSON Corneliuson & Associates, Inc. carlc@corneliuson.net 952.920.2313

FRANK FIORE Accounting Freedom, Ltd frank@accountingfreedom.com 847.949.8373

STEVE GIFT Gift & Associates steve@giftassoc.com 717.766.3555

RICH SCHWARTZ Schwartz & Associates, CPA, PC rich@rschwartzcpa.com 856.232.1111

2013-2014 PASBA BOARD OF DIRECTORS 5


FALL MANAGEMENT CONFERENCE NOVEMBER 11–14, 2013 Agenda Conference

MONDAY NOVEMBER 11

TUESDAY NOVEMBER 12

8:00 am – 9:00 am 9:00 am – 10:30 am 10:30 am – 10:45 am 10:45 am – 12:15 pm 12:15 pm – 1:45 pm 1:00 pm – 1:30 pm 1:45 pm – 3:00 pm 3:00 pm – 3:15 pm 5:00 pm – 6:30 pm

Breakfast 10 Secrets to Achieving Success in Small Business Ed Hastreiter Session Break/Exhibitor Showcase 10 Secrets to Achieving Success in Small Business Ed Hastreiter Luncheon Sponsor Demonstrations - TBD Breakouts A: PAYROLL SERVICE BUREAU MECHANICS: TAX SERVICES, DIRECT DEPOSITS & STAFFING Kelli Gift B: THE CLOUD – WHY? Matt Patrick C: STUCK IN NEUTRAL – PANEL DISCUSSION Gary Haworth, Tom Bowman, Steve Gift Session Break/Exhibitor Showcase Reception / Exhibitor Showcase

WEDNESDAY NOVEMBER 13

8:00 am – 9:00 am 8:00 am – 9:00 am 9:00 am - 10:20 am 10:20 am - 10:40 am 10:40 am - 12:00 pm 12:00 pm - 1:30 pm 12:45 pm – 1:15 pm 1:30 pm - 2:50 pm 2:50 pm - 3:10 pm 3:10 pm - 4:30 pm 6:00 pm - 10:00 pm

Breakfast Past Presidents’ Breakfast Practice Size Breakouts & All Blueprint Sessions Session Break/Exhibitor Showcase Practice Size Breakouts & All Blueprint Sessions Luncheon Sponsor Demonstrations - TBD Practice Size Breakouts & All Blueprint Sessions Session Break/Exhibitor Showcase Practice Size Breakouts & All Blueprint Sessions PASBA Casino Night at STATS – Downtown Atlanta

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8:00 am – 5:00 pm Conference Registration 9:00 am – 12:30 pm Blueprint for Success University / Blueprint Mastery / Blueprint Sales University 12:30 pm – 1:45 pm Welcome Luncheon 1:15 pm - 1:30 pm Sponsor Demonstrations - TBD 1:45 pm – 3:00 pm Breakouts A: EMPLOYEE HIRING & RETENTION – PANEL DISCUSSION Brian Paulson, Tyler Thompson, Vince Howard B: HOW & WHEN TO CREATE A PAYROLL DEPARTMENT Kelli Gift 3:00 pm – 3:15 pm Session Break/Load Bus to Office Visit 3:15 pm – 5:30 pm Office Visit Business Accounting Services Steve & Carol Ford

THURSDAY NOVEMBER 14

7:30 am – 9:00 am Board Breakfast Meeting 8:00 am - 9:00 am Farewell Breakfast 9:00 am – 10:15 am Creating Raving Fans Through Legendary Service Vicki Halsey – The Ken Blanchard Companies 10:15 am – 10:30 am Session Break/Exhibitor Showcase 10:30 am – 11:45 am Creating Raving Fans Through Legendary Service Vicki Halsey – The Ken Blanchard Companies 11:45 am – 12:00 pm Meeting Wrap-Up/Spring Conference Suggestions Matt Patrick & Brian Paulson 12:00 pm – 1:00 pm Boxed Lunch – Sit Down or To Go


JOHN SOMERVILLE

Somerville & Company Cincinnati, OH

STEVE SHARFI

ADE ROGERS

Rogers & Associates Covina, CA

Gutta, Sharfi, and Co. CPAs, Inc. / Accounting Advantage Sunrise, FL

CAROL & STEPHEN FORD

MARK SUNDERLAND

WILLIAM THOMPSON

COREY & LAUREN MILLER

Business Accounting Services – Atlanta, GA

The Sunderland Group, Inc. – Boulder, CO

Business Management CPAs – Palm Springs, CA

BRYAN CREMEEN AccountSource LLC Blaine, MN

WELCOME NEW PASBA MEMBERS

YURIY AKOPYAN

Akopyan & Co., CPA Seattle, WA

Benham, Miller & Harris, Inc. – Stuart, FL

GLENN KEEN

Keen & Company Roswell, GA

J. WAYNE VANDERFORD

JIM CRIMMINS

OVIE GIBSON

JODY RADCLIFF

Vanderford CPA, PLLC – Cordova, TN

RYAN McCOWAN

Greene, McCowan & Co., PLLC London, KY

Small Business Financial Services, LLC – Peoria, AZ

Ovie Gibson CPA AC – Charleston, WV

Jody D Radcliff CPA LLC – South Daytona, FL

FALL MANAGEMENT CONFERENCE Hotel Information Ritz-Carlton Buckhead 3434 Peachtree Road NE Atlanta, GA 30326 PH

404.237.2700

www.ritzcarlton.com/buckhead KLEKLEA // GROUP RATE $199 CUTOFF DATE October 11, 2013

GROUP CODE

Reference PASBA when making reservations to get the group rate.

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FALL MANAGEMENT CONFERENCE NOVEMBER 11–14, 2013 Conference Spotlight KEYNOTE SPEAKER

Customer service is a concept that every organization says it focuses on and

DR. VICTORIA HALSEY

wants to be known for. Yet in surveys, customers say most organizations still

CREATING RAVING FANS WITH LEGENDARY SERVICE

to remember when they are face to face with a customer?

THURSDAY NOVEMBER 14

offer merely average service. Why is winning customer loyalty and commitment so challenging? Could it be because most customer service initiatives take something seemingly simple-caring for customers-and turn it into something complicated, with too many rules and guidelines for a frontline service provider In this exciting session, attendees will learn the five elements of customer care in the ICARE model and how they easily can be utilized in any workplace; how employees’ treatment of both internal and external customers is a direct result of leaders’ treatment of employees; and how to connect the dots between great customer service and a winning organization. LEARN THE IMPORTANCE OF: [,L IDEAL SERVICE and its value to your organization. L ESTABLISHING A CULTURE OF SERVICE that includes a company-wide service vision. L BEING ATTENTIVE to the specific needs of different types of customers. L PRACTICING RESPONSIVENESS, which is all about communication. L EMPOWERING customer-facing employees to take the initiative. When employees truly believe that the job of caring for their customers is not only important but essential to their company’s success, that belief will fuel their desire to demonstrate care in they do. APPLICATION ON THE JOB: It is no secret that improved customer satisfaction drives repeat business. This session will help people align practices back on the job to ensure seamless customer service is delivered consistently throughout the organization thereby improving customer loyalty. Leaders will be able to empower people to deliver stellar customer service which, in turn, helps them fulfill their leadership potential and know where and how they can make a difference for the organization. Leaders at all levels of an organization will be able to understand how continuous service improvement increases market share, improves margins, reduces costs, and drives overall organizational success. Develop plans for improving the level of service delivered not only to external customers, but to internal customers.

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Dr. Victoria Halsey

is a spirited, inspirational speaker, author and trainer who energizes audiences worldwide by engaging their hearts well as their minds.

With the same skill and finesse that made her a National Champion platform diver, Vicki dives in quickly and deeply with her clients to identify and address their needs, aspirations and visions. Her lively, animated presentations feature entertaining and humorous anecdotes that allow people to relax and laugh while learning — a key factor in creating highly-effective experiences. People leave Vicki’s presentations with renewed conviction to utilize their talent to tackle key personal and organizational issues. Whether the audience is 50 or 5,000, Vicki’s energy, intellect and passion inspire people to be in touch with and unleash their greatness. As Vice President of Applied Learning for the Ken Blanchard Companies, Vicki specializes in partnering with organizations to design, deliver and coach their people through interactive workshops, keynotes, webinars, podcasts and numerous other classroom and eLearning experiences. She is the co-author of Blanchard’s Legendary Customer Service Training as well their award winning blended eLearning Situational Leadership® II program. In addition, Vicki also crafted the highly acclaimed MBA and MSEL university degree programs for both University of San Diego and Grand Canyon University.

REUTERS/Bob Strong

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4/12/13 10:33 AM


MEMBER PROFILE Frank Fiore

Who has had the most influence on your practice?

What brought you to the accounting profession?

By far Tony, my dad, has had the most influence on me and our practice. He started the firm 30+ years ago and has grown it to what it is today. He has always kept the vision of creating a business that does accounting, versus simply being an accountant. I am extremely lucky to have the opportunity to run and manage the practice that he started and learn from one of the best entrepreneurs.

At age 15, I was working for minimum wage at the local hardware store. I became extremely frustrated working long hours with not much to show for it. Tony suggested I take an H&R Block tax course to see if it piqued my interest. After completing the course, I worked my first tax season and saw how much potential there was. I’ve been here ever since and am about to start my 11th tax season.

What is the best tip you havegained from a PASBA conference? A tip that has had a large impact on your company?

Who is your favorite client and why?

Every conference always has great ideas on the continued implementation of technology in your practice. One of the best tips we have gained is the use of remote hosting for your clients software. Whether you host their QuickBooks, use Right Networks or CBS ASP, control of the data is the key. By being in control, it eliminates the headache of constantly chasing clients for their data. What is your most memorable PASBA conference experience?

New Orleans will always be a memorable conference for me. I had my first opportunity to present the micro/e-business program to the PASBA group. Also, watching Jen Trabon, Kim Bryant, and a few Thomson employees ride a mechanical whale was very entertaining to say the least! What is one idea/technique that you would like to share with other PASBA members from your office?

Weekly ACH Billing is one of the best changes we’ve made in our practice. Not only does it help our cash flow, it also eliminates all billing and collection problems that we experienced in the past. Every client is on the same weekly system and we will never turn back. Clients can pay us anyway they want, as long as it is on weekly ACH! What is something you have done in your practice that you would not do again or would not recommend other PASBA members do and why?

Slow to fire, quick to hire. A bad employee is a cancer to your company and can quickly drag everyone down. Make sure to take your time and hire the best possible people. If they do not work out, cut your losses and move on.

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My favorite client is a steel fabrication company. They have been clients for over 25 years and are going on their third generation. They are very cooperative and always listen to our advice. They know what they don’t know and trust us to take care of the rest. What marketing/technology/practice tool could you not live without and why is it so important to you?

I think a practice management software and triple monitors are a must for all firms. A good practice management software gives you the ability to see exactly where your practice is at. Having those fingertip controls are invaluable. Triple monitors also help speed up production on every level of your practice. What is a unique idea that you use in your office and think might be beneficial for others to try?

Left-handed mouse! It takes you 1-2 weeks to get accustomed to it, but will speed you up tremendously in the future. Time is money! What are your goals for the future?

Our goal is to continue to grow our accounting and payroll practices. We hope to reach 250 monthly accounting clients and 225 payroll clients in the next five years. If there is one, what aspect of the PASBA system are you trying to implement in your office right now?

Currently, we are working on moving the PASBA system to be all electronic. With the addition of our Wisconsin office, we want to be able to process or review our clients data in any location.


Need more clients? We have an app for that!

Are You Paying

too Much in Taxes? Home Technology Bookkeeping Tax Services Payroll Billpay

FOR MORE INFORMATION PLEASE CONTACT: krista.hurley@ourpartners.com | mike.ryan@ourpartners.com | 800-845-0792

Do you have an article you would like to publish in the PASBA Insider? Do you have a topic you would like to know more about? If you have any ideas or articles that you think the rest of the membership should see, please let us know. CONTACT PASBA CENTRAL OFFICE director@pasba.org | 866.296.0001 CENTRAL OFFICE 6405 Metcalf Ave., Suite 503 Shawnee Mission, KS 66202 866.296.0001 pasbaco@dci-kansascity.com

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PASBA CENTRAL OFFICE

JORDAN BENNETT

DIRECTOR

PASBA MEMBER/VENDOR DIRECTOR

director@pasba.org 866.296.0001

jbennett@dci-kansascity.com 913.387.5607

EARN BIG FIRM REVENUE WITHOUT BIG FIRM COST You Do NOT Need to DO It All Yourself Pransform’s Affordable, Assured Quality & Productivity Back-Office Services Help You:

Grow using our ready resources Create new profitable revenue Sell full service capabilities Service larger clients Pransform’s Outsourced Services Include: Bookkeeping | Accounting | Tax Prep. | Branded Portal

CONTACT US NOW: Ask for Roland | 657-206-0995 iBenefit@pransform.com www.pransform.com

Empowering Accountants Grow Their Business For 9 Years

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EMENT CO G A N AN

---SAN JUAN ---

E FER

PUERTO RICO

--- MAY 12-15, 2014 ---

NC E

CONFERENCE INFORMATION AND UPCOMING EVENTS

FALL M

6405 Metcalf Ave. Suite 503 Shawnee Mission, KS 66202

Sa

NOVEMBER 11–14, 2013 FALL MANAGEMENT CONFERENCE ATLANTA, GA • NOVEMBER 11-14, 2013

ve the Da te

S P R IN G MAR KE TING CO N F E RENCE

SPRING MARKETING CONFERENCE SAN JUAN, PUERTO, RICO • MAY 12-15, 2014

The Ritz-Carlton, Buckhead

Intercontinental San Juan

3434 Peachtree Rd Northeast | Atlanta, GA | 30326 RESERVATIONS: 404.237.2700 ROOM RATE: $199

5961 Isla Verde Avenue | San Juan | 00979 | PUERTO RICO RESERVATIONS: 800.496.7621 ROOM RATE: $179

SOUTH REGION MEETING FRIDAY, NOVEMBER 22

SOUTH REGION WEBINAR FRIDAY, DECEMBER 13

CENTRAL REGIONAL MEETING FRIDAY, DECEMBER 20 12


PASBA–Newsletter Fall 2013  

PASBA, accountants, news, members, DCI

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