September 2003 Newsletter

IntraScope Accounting Solutions, LLC

September 2003 Edition

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MANAGEMENT

Should you have a strategic plan? Many business owners aren't sure this is something they need. They don't understand the benefits and power of a strategic plan. A strategic plan focuses your company's resources to get profits. A strategic plan looks at where you are and where you hope to go. A good plan will also include a game plan so you know how to get to where you want to go. The clients that I have worked with to develop a strategic plan are more focused and successful because they know where they are going.

Strategic Planning is for you if…

You are ready to move your business to a new level.

You need a clear direction and focus to make important business decisions.

You know something isn't quite right with the way your business is running, but you don't know what is wrong.

Your business isn't as profitable as you think it should be.

Your staff is asking you for a vision of the company and you can't articulate your goals and dreams to motivate them.

TAX TIP

With the holidays fast approaching, many employers start thinking about holiday bonuses. There are a lot of misunderstandings about what is allowed and whether or not the bonuses need to be included in wages. First rule: if you hand out cash or gifts (even a small amount like $100), you must include the bonus in the employee's W-2! De minimus employee awards and prizes (like a turkey) are not considered compensation. The only other exception for a taxable event is an employee achievement award. You must have a written plan and the award cannot be cash or gift certificates. When in doubt, a bonus is most likely taxable compensation subject to Federal, State and FICA.

FINANCIAL

This is also the time of year to start thinking about putting together a budget for next year. I strongly encourage every client to have a budget because it is another tool to ensure your success. There are two main reasons why you should consider a budget for next year. Budgeting allows you, as the business owner, to develop a plan for the coming financial period. Do you have the resources to achieve your goals next year? What is the impact of adding that employee you have been thinking about hiring for the last few months? Budgets are also a great way to control the management process by monitoring actual performance against the budget. Can you imagine how quickly you can respond to the market when you know immediately that you are not meeting your goals? A good budget process will help you and your staff articulate the company's goals for next year and gives you a tool to measure your performance.

DID YOU KNOW.....

Only 57% of CEOs have a continuity plan in place in case a catastrophic event impacts their business. We don't think about how a fire or theft could seriously damage our business and what it would take to recover if we lost everything. Every business should have a plan that focuses on recovery of both critical business processes and supporting systems. Unfortunately, many companies focus on IT systems and overlook other critical functions such as customer service.