IntraScope Accounting Solutions, LLC

 

 

December 2002 Edition

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I hope you have a great New Year’s Eve and a profitable year ahead!

 

MANAGEMENT

 

We all know about the hidden costs of goods and services.  They eat away at the bottom line and usually only become visible when we look in the rearview mirror.  The lesson is that there is a difference between the price of something and its real cost.  Think of it as price plus hassle.  People have a hidden cost too.  Maybe it is time to take a look at your team’s hidden cost, person by person.  Draw up a chart for your personnel, with one column identifying added values and another column identifying hidden costs.  Is someone on your team a great sales person but you loose good employees that can’t work with him or her?  It is possible that someone who looks to be a great employee is hurting your bottom line.

 

TAX TIP

 

Most taxpayers cannot take advantage of medical deductions because their medical expenses do not exceed 7.5% of adjusted gross income.  However, there is some new guidance from the IRS regarding weight-loss programs.  If the expenses for a weight-loss program are uncompensated and the program must be a treatment relating to a specific disease or ailment which is diagnosed by a physician, then the expenses are deductible.  You should consult a physician before enrolling in a weight-loss program to see if there is a medical reason for joining.  Make sure to get a written diagnosis, along with a recommendation to join a weight-loss program.  Call me for more details to ensure the deductibility of your weight-loss expenses.

 

FINANCIAL

 

Managing accounts receivable appropriately can be critical to your business success.  For example, assume your monthly billings are $50,000.  If your customers pay you in 60 days instead of 30, chances are you will have to finance at least some portion of the $50,000.  This can put a huge strain on cash flow and profitability.  Have a written process for follow-up on past due accounts at 30, 60 and 90 days.  If a customer promises to send a check “next week”, set up a tickler file and follow-up immediately if you don’t receive it.  The old truism, the squeaky wheel gets the grease is especially true when collecting past due accounts.  Assign someone at your company the specific duty of managing accounts receivable or add it to your monthly “to-do” list so it becomes important.

 

DID YOU KNOW…..

 

There are dozens of scams out there to steal financial data.  Believe it or not, some scam organizers are sending letters claiming to be from banks and the IRS!!  Three forms being used to request information from taxpayers are W-8BEN, W-9095 and W-8888.  Two are these forms are entirely fictitious.  The scam promoters use the personal information to steal the victim’s identity allowing them access to bank accounts, credit cards, etc.  Don’t give your personal information over the telephone or via the internet.  Make sure you verify any request for personal information – especially any request that puts pressure on you to get them the information within a certain time frame.