The U.S. economy is finally on the mend. Or is it? Here to provide some perspective is the latest issue of RBB News. It presents important tax, business and financial news and opinion to help you see the bigger picture, and to make more informed decisions.
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Rucci, Bardaro & Barrett, PC
The Right Size Accounting Firm
919 Eastern Avenue
Malden, MA 02148
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Lexington, MA 02420
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Atkinson, NH 03811
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A slew of conflicting reports about the economy and jobs painted a complex picture last month. The U.S. Labor Department reported that first-time unemployment claims jumped to an eight-month high. Yet a report by the Society for Human Resource Management showed HR professionals having a harder time finding candidates for both manufacturing and service sector jobs.
Here in Massachusetts, economic growth surged ahead of the overall U.S. in the first quarter of 2011, according to a study by the University of Massachusetts. Real gross state product grew at an annual rate of 4.2 percent, more than double the national economy's expansion of 1.8 percent.
Still, U.S. companies remain wary about hiring in this tough economy, as more turn to temps and other so-called “contingent workers.” Temp use increased to about 2.3 million recently from a trough of about 1.7 million in mid-2009, the Labor Dept. said. (In Massachusetts, laws governing the proper classification of these workers are especially strict. Contact us to find out more.)
The picture is particularly unclear in the restaurant industry, where the NRA’s latest Restaurant Performance Index increased for the sixth time in seven months. Yet only 32 percent of owners in the survey expect economic conditions to improve over the next six months. That’s the lowest level since September 2010.
How long should you keep tax records? – Now that your tax return is done for another year, it’s time to dump all that paperwork, right? Not so fast – you might need some of that documentation if you get audited. Here’s a handy guide from bankrate.com on how long to keep your tax records.
IRS turns up the heat on wealthy taxpayers – IRS audits of multimillionaires surged 73 percent in 2010, according to a report by Bloomberg News Service. Experts say it's about more than boosting revenue; the agency may be trying to improve its image among average taxpayers who think the IRS favors the wealthy.
IRS overhauls tax lien system – Meanwhile, the IRS said that it is making major changes to its tax lien process in an effort to help struggling businesses and individual taxpayers get a fresh start with their tax liabilities. The website aicpa.org recently provided a summary of the changes and how they will affect taxpayers.
When families bungle succession planning – Handing off a family business to the next generation is the realization of a dream—or a complete nightmare, as the owners of Stonyfield Yogurt write about in their first-person account that appeared in a recent issue of Inc. Magazine.
Congress repeals some 1099 reporting rules, leaves new ones to take effect – Recent legislation passed by Congress and signed into law in April eliminates two onerous reporting requirements that were to take effect in 2012. Still on the books, however, are a couple of new requirements effective this year.
A sure path to sales success: Invest in your sales managers – Sales management is one of the most important, yet arguably the most misunderstood, roles in any organization. As a result, most sales managers have no formal training on how to actually do their jobs. Our colleague, Jim Ayraud, President of Next Level Inc., writes about the importance of this often overlooked investment in this guest article.
When staying in business becomes a struggle. Weakened by a prolonged work slowdown and non-paying clients, the owner of one construction service company talks to newequitybusiness.com about what he needs to survive. The story includes perspective from RBB’s Bill Rucci about what different financing sources look for when struggling companies come looking for additional capital to stay afloat.
Paul Bardaro has been re-appointed to the Board of Directors of Greater Medford Visiting Nurses for a two year term. He previously served for five years as Board President, and will continue to chair the organization’s Strategic Planning Committee.
Bill Rucci wrote about alternative methods of financing for the latest issue of The Professional Contractor magazine, published by the Associated Subcontractors of Massachusetts.
Congratulations go to our COO, Hank Wolfson, who finished his tenth Boston Marathon in April. Hank runs the race each year to raise money for the Dana Farber Cancer Research Institute.
RBB’s global accounting network, Russell Bedford International, has published the Spring 2011 issue of its Business World magazine. The publication contains news, views and analysis reflecting the group’s latest thinking about doing business locally and globally.
RBB is uniquely suited to handle assignments from many different types of businesses. Our size and structure allows us the flexibility to deliver superior service from a team assigned to your business and headed by a partner of the firm, and yet remain within your established budget parameters for either a specific project or an ongoing engagement. To contact us, call the above number or visit our web site - www.rb-b.com.
