Recent reports on the U.S. economy point to a persistent soft patch on the road to recovery. Here to provide some perspective is the latest issue of RBB News – our summary of 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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In This Issue:
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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
T: 781-321-6065
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Anemic job growth continues to be a major problem. And there are plenty of theories about its underlying causes. On Salon.com, Robert Reich wrote that businesses are reluctant to spend more and create more jobs because there aren’t enough consumers out there able and willing to buy. Catherine Rampell reported in the New York Times that while equipment is getting cheaper, workers are getting more expensive, thus encouraging companies to spend on machines rather than people. And in the Atlantic, Derek Thompson wrote about a “new, relentless pursuit of efficiency” in which globalization and technology are making millions of U.S. workers disposable.
Locally, at least one industry sector appears to be showing signs of life. The Boston Business Journal reported that Bay State construction employment rose one percent in May, citing the latest survey from the Associated General Contractors of America. And The Boston Globe recently highlighted several large projects that promise to create some 4,000 construction jobs in the coming months.
Yet other indicators weren’t as hopeful. Consumer confidence fell in June to the worst level in eight months on concerns about employment and income, reported MarketWatch.com. Generally when the economy is growing at a good clip, confidence index readings are at 90 and above. June’s reading was a dismal 58.5.
IRS increases mileage rates – The IRS acknowledged the cries of pain at the gas pumps and on July 1st raised the standard mileage rate used to calculate the deductible costs of operating an automobile for business to 55.5 cents per mile. The IRS also increased the mileage rate for medical and moving expenses.
10 mid-year tax moves to make now – A lot of people wait until December to start thinking about their tax bills. But now, halfway through the tax year, is even better for tax planning. So put down your golf clubs, step away from the pool and check out these 10 mid-year tax moves compiled by Bankrate.com.
FUTA surtax expires after 35 years – The Federal Unemployment Tax Act surtax expired on June 30th after House Republicans refused to extend the 35-year-old “temporary” unemployment surtax. The tax had been extended eight times since it was originally enacted in 1976 according to AccountingToday.com.
Small business loans still hard to come by - Small businesses expected 2011 to be when a years-long credit freeze would finally begin to thaw. But borrowing has only gotten worse, according to a recent story from the Wall Street Journal. Business owners rank access to capital as the most important issue facing privately held companies.
Keep your best people from being stolen – Executives face a challenge keeping top workers who more and more seek new opportunities. Losing a valued employee is costly. Here from portfolio.com are some strategies beyond salary alone to keep the workforce contented.
Spending your ad budget wisely – Worried your business’ ad dollars are just going out into the ether with no impact? Here are three things every business owner should know: 1) consumer recommendations matter; 2) most teens click on mobile ads; and 3) reality TV show ad placements leave good impressions, a new study from Nielsen finds.
Rewards await companies that go global – Need an incentive to expand your business to foreign shores? Here’s one: Nearly a quarter of American small-to-midsize businesses surveyed by The Business Journals report that they do business overseas, and they have significantly higher sales to show for their efforts.
Milly Espinal was elected to the board of the New England Center for Arts & Technology.
Roy Henshaw, Lenny Smith and Paul Bardaro traveled to Rutland, MA in June to a dedication of the state’s first anaerobic digester at Jordan Dairy Farm (an RBB client company). Gov. Deval Patrick also attended. The new eco-friendly system is designed to produce methane gas from recycled cow manure and food waste.
Mark Paquin was elected to the board of the Eastern Inter-Club Ski League, a 1,200-member organization comprised of 23 ski and sports clubs operating in the Mount Washington Valley of New Hampshire.
RBB supported several charity fundraisers recently, including the Melrose-Wakefield Hospital 30th annual golf tournament (with organizational assistance from Paul Bardaro), the annual Association of Builders & Contractors golf tournament (attended by Mark Paquin and Vinny Botta, who held their own with playing partners Bob Giovannucci and Mark Trabucco from Interstate Electric), and the 10th annual The Tradition, a fundraiser held at the TD Boston Garden to benefit the Sports Museum.
For the second year, RBB served as pro bono audit partner of the Inner City Business Award Competition, sponsored by Fortune Magazine and the Initiative for a Competitive Inner City (ICIC). The annual program recognizes 100 successful inner city companies and their CEOs as role models for entrepreneurship, innovative business practices and job creation in America’s urban communities.
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.
