IMPORTANT DATES AT ROSS TAX & ACCOUNTING:

• July 5th: OFFICE CLOSED.  Our office will be closed Monday, July 5th in observance of the July 4th holiday.  We will reopen Tuesday, July 6th at 8:30 a.m.

• August 2nd: 2009 RETIREMENT OR EMPLOYEE BENEFIT RETURNS (5500 series) DUE.  The normal deadline is July 31st, but since that day is a Saturday, the deadline moves to the next business day, August 2nd.

• July 1st - July 14th: ZAYDA VILLA OUT-OF-OFFICE.  Zayda is off to Germany for vacation.  If you are a client of her's and need assistance, please contact Renè Beeslaar. 

Are All of Your Business Eggs in One Basket?

We have all heard the old saying: "never put all your eggs in one basket."  Though this applies to many of life's situations, it undoubtedly holds true for small businesses  (and even more-so to small businesses in their initial stages).  The one fatal egg that is most commonly seen in business development is being over-reliant on a single customer or supplier for the majority of income.  Just as with creating a well-diversified portfolio when investing, in business your goal should be a wide-range book of customers and suppliers.  

This, however, is not always an easy task to achieve.   With the current downturn of the economy and the current rising of the inflation rates you might be in a situation that your business must work with, at least for the short-term.  But over time we suggest that you take the following steps to understand your risk and eventually change it:

Measure the Problem-  Quantify how your sales break out by customer.  Your managers might be able to do this for you or we, your accountant, can assist you.  You only need to break-down the top five or ten customers to be able to see if you have an over-reliance problem.  If you are a retailer or a manufacturer, take a similar look at your principal suppliers.  Quantify how dependent you are on the top few. 

Understand the Risks-Are there factors that could jeopardize your relationship with your chief customers or suppliers?  Although they might vary with circumstance, you need to list possible risk factors and make sure their presence is made aware of.  A risk factor might be the chance of a natural disaster that could interrupt your customer's business or prevent you from shipping & receiving goods.  It could be a change in the marketplace or the economic stability as we have seen recently around the world.  Do not forget to factor in your competitors, possible problems in your operation (i.e. drop in quality, delays in shipping, poor inventory), or new technology developments that cut demand for your product.  Although the list may be daunting, until you understand the possible risks of your business you can not develop solutions. 

Look For Ways to Minimize Risks-  Brainstorm with your partners and managers on long-term steps to reduce each risk.  It might be to tweak your product design or to enter into new markets.  Think through contingency plans to address possible disasters (or find alternative suppliers).  Discuss how you would respond to changes in the marketplace. We suggest that you attempt to set measurable goals for change and clearly delegate responsibility.

All-in-all you should always have options to avoid disasters.  It's not just smart - it's essential.  If you need an extra perspective, or guidance, on your particular situation please contact us.

Summer's Here!  Time to Plan for Taxes

The joys of summer: vacations, backyard bbq's, popsicles, tax savings.  Yes, we said tax savings.  Although it might not sound like a "joy," summer is the perfect time to look at your tax situation and consider new ways to save money for 2010 tax-filing.  Not only does the season give you sufficient time to straighten your finances before April 15th, but it is also a good time to consult with our tax professionals (since we are not in the hustle-&-bustle of tax season).

The tax law offers many opportunities to reduce your taxes - many that you might have missed in 2009.  If you are aware of these options and can put them in place early enough in the year to benefit from them, then you will certainly be better off. 

• Are you managing your income to save credits and deductions to which you are entitled? 
• If you are facing college expenses for a dependent or yourself, are you doing the necessary planning to maximize available tax breaks?
• Have you analyzed your investments (including those in your retirement plan) to benefit from tax savings?

Tax planning is not just necessary on the personal side.  Mid-year tax planning is even more vital for your business.  To put new opportunities to work for you, give us a call to schedule your summer tax-cutting review.

Our New Office

We are settled and enjoying our new office space.  Below are a few pictures.  We invite you to come by and see us.

This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.