Why Your Tax Accountant is Grumpy - Part 1

Why is your tax accountant grumpy? Defensive? Jacking up fees?

In this series we will explore the reasons.

So let's look at grumpiness caused by clients.

First and biggest problem - lousy bookkeeping and accounting. 

Quality bookkeeping and accounting requires money, time and effort. 

Quality bookkeeping and accounting is critical to understanding your own business.

Quality bookkeeping and accounting is mandatory for IRS and other tax filings.

Quality bookkeeping and accounting is mandatory for Key Performance Indicators, the heart of your business analytics.

Taxes Gone Wild

 Some time this year a tax bill will be passed.

The House of Representatives has passed an omnibus bill including tax provisions.

The Senate will take up the bill this summer.

What will be in the bill? A lot of pieces and parts.

Advice:

If you do not have a solid relationship with a tax professional now is the time.

If you are doing any major projects or deals in the near future someone should help you work through the possible impacts of the tax bill.

Recession on the Way - Part 5 - Pricing Problems

The current nightmare will cause pricing problems.

The tariff mess will require price increases at or close to the amount of the tariffs.

But...

A budding recession may eventually force price decreases.

The result is lower contribution margins and less profit. If there is a profit.

This is going to get ugly, really ugly.

Being pro-active is the best strategy, if there is a useful strategy to this mess.

Recession on the Way? - Part 4 - Supply Chain Wars

The tariff wars are currently focused on a 1-to-1 battle between the US and China.

China is critical to many of our consumer goods supply chains.

Retailers are going to be in a very bad way if this continues for long.

The other 75 (unmamed countries) who are anxious to negotiate seem to be nowhere in sight. 

Odds of a recession are rising, rising, rising. 

Recession on the Way? - Part 3 - Supply Chain Chaos

 The current "trade wars" and tariff battles will inevitably cause some chaos  in supply chains, foreign and domestic.

What exactly will happen? We do not know. The situation changes day-by-day.

What can you do?

Keep in close contact with your suppliers.

Order early rather than later.

Scout alternate sources.

Keep a close eye on inventory levels.

Try to take care of important and large customers first. 

Be honest with customers if you have log jams.

Recession on the Way? - Part 2

So what is next?

Analyze your geographical area.

Diverse economy?

Non-diverse economy?

Heavy with tourism? Heavy with manufacturing? Heavy with healthcare?

Stable area or area in transition?

This helps you to determine the risk level to your business should a recession develop.

Higher the risk, the more urgent the preparations.

 The Trump tariff wars are off again, on again, partially on again, somewhat modified and tomorrow will likely change again. Best to anticipate the worst and hope for the best.

Recession on its way? Risk Profile Part 1

Every small business owner should do a risk profile of the business.

Does the business deal in...

        Necessities?      

        Nice but not necessary?

        Luxuries?    

Is the sales/service in an area....

          sensitive to economic downturns?

           neutral to economic downturns?

           immune from economic downturns?

Is the sales/service....

        Sensitive to supply chain disruptions?

         Neutral to supply chain disruptions?

        Immune to supply chain disruptions?

More to follow on the next post.