LogoSerotta Maddocks Evans, CPAs

We create history, not just record it.

www.smecpa.com 


      701 Greene Street, Suite 200          1231 Augusta West Pkwy.

             Augusta, GA 30901                         Augusta, GA 30909

                                              706.722.5337                                 706.863.3637      

 

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smEnews
June 2013
Dear ,  

 

We are midway through summer and hopefully you have had time to enjoy some downtime or are looking forward to a vacation in the near term.  Unfortunately, this can be difficult to accomplish when you are a small business owner or manage a small nonprofit organization.  As you know, small business owners must wear many different hats on a daily basis.  As the leader of the organization, you must insure the customers are happy, the employees are satisfied, accounts are collected, and bills are paid on time.  You must also make sure the company complies with an ever-increasing number of laws and regulations that effect all organizations.  Most company leaders probably spend more time on administration efforts and reacting to changing regulations than they anticipated when starting the business.  Likewise, most small business owners don't have the available time to:

  1. Analyze costs to ensure profit maximization
  2. Prepare a budget to allow measurement of monthly results and project cash position
  3. Shop bank rates or consider investment options for surplus cash for optimizing returns and managing exposure risk 
  4. Anticipate regulatory changes and their effects on the business and its customers
  5. Consider whether employee duties are assigned properly to prevent undetected theft and ensure internal controls are adequate to prevent fraud

 

More often than not, we find that small business owners don't have the time to make many of these considerations a priority until they are reacting to a situation that requires it.  In a large business an experienced CPA is on staff to take care of these things; but small businesses don't have the resources to devote to hiring a full-time, experienced CPA.  This is where your trusted advisors at SME can help.  Our team would be happy to meet with you and help you determine what services would benefit your business operations the most.  We can help you evaluate your costs, project your cash flow, assist with regulatory compliance, structure your internal controls, develop policies and procedures, shop investments or loans, and many other services.  We can alleviate the administrative burden and free you up to think about the big picture for your business.

 

Allison Moore, CPA

ProAdvisor Summer F. Bell

Date:June 26, 2013

 

General Accounting 
 
"Summer has been doing our books for over five years, she has always been dependable and reliable, the quality of her work is excellent, and her understanding of Quickbooks is amazing. She did a great job of teaching us to use the software. I would highly recommend Summer and the team at SME for any accounting services someone may need."
 
Read more of Summer's reviews at: 
"BACK TO SCHOOL" SALES TAX HOLIDAY
GIVES PARENTS, TEACHERS A CHANCE TO SAVE

ATLANTA-With the advent of a new school year just weeks away, the Georgia Department of Revenue announces that the "back to school" sales tax holiday will be August 9-10, 2013. 
 
"The 2013 sales tax holiday represents an excellent opportunity for parents to save money on basic necessities when getting their children ready for the upcoming school year in Georgia," said DOR Commissioner Doug MacGinnitie. 
 
Clothing and footwear with a sales price of $100 or less per item will be exempt from sales tax, along with single purchases of $1,000 or less of personal computers and computer-related accessories. Also, general school supplies to be used in the classroom or in classroom-related activities with a sales price of $20 or less per item are exempt from sales tax. 
 
More information concerning the 2013 sales tax holiday and tax exempt items can be found on the Department's website here under Sales Tax: https://etax.dor.ga.gov/hottopics.aspx 

Marketing Tip from Heather Hammack

 

How Social Media is Changing Mentorship

 

Whether you need help starting your own business or you are looking for a promotion, mentors can be the key to your success. Statistics prove that professionals who have mentors make between $5,610 and $22,450 more annually than those on their own.

 

Mentors seem to make the biggest difference is when it comes to entrepreneurship. Most entrepreneurs can tell the story of a mentor who offered help at the exact right moment. The wisdom from these smart helpers who've been there before can be the difference between your success or failure.

 

For instance, stats reported byThe Startup Genome Reportshow startups are seven times more likely to raise investment capital when mentors are in the mix. They are also three-and-a-half times more likely to grow user numbers for their product or service if someone is lending a helping hand and a little wisdom.

 

In today's digitally-connected world, it's easier than ever to connect with influential people in your industry and request advice and mentorship. So how do you use social media tools to find the mentor your business needs? And what's the protocol for using tools like Twitter, Facebook and LinkedIn to connect?

 

Find A Mentor On Social Networks

Finding a mentor on social media is a process. Tweeting "Be my mentor?" to the top guy in your industry will not get you the personal mentorship relationship you need. Instead, the first thing you need to do is truly know your industry. This should be simple, because knowing your industry is essential for any entrepreneurial endeavor or startup venture.

 

Part of knowing your industry isknowing the who the influential people in your industry are. These prominent performers are undoubtedly active on social media, so start following them on the channels they frequent. Once you're following, it's time to connect. Reach out over social media, but don't go overboard. Leave a comment on a post prompting a discussion, re-tweet an interesting article and look for opportunities for personal connection.

 

Once you've built a relationship with your mentor target, only then should you ask for advice and mentorship. Now this person knows you, knows a bit of your story and already has positive associations with you because you've given him or her content and business a signal boost. Build a personal connection, help others and they'll be more likely to want to return the favor.

 

Connect Personally Using Social Media
 

Just because you and your mentor have exchanged a few tweets back and forth doesn't mean your mentorship relationship is set in stone. Social media should be used to establish a connection, but deepening your relationship isn't up to your social media sites. You need to really reach out, ask for mentorship and form a personal connection.

 

Go To Class In Your Pajamas
 

Mentors and peers are great with advice, but sometimes you just want to grab a pen and learn the old-fashioned way. Now, you don't need to set foot in a classroom to learn a new skill or expand your knowledge base.

 

Social media and technological tools are makingonline learning easy. You can view learning material online, take part in a real-time seminar or even watch YouTube tutorials to learn from those who have come before.

 

Bring Groups Together, Plane Rides Not Required

One-on-one mentorship is great, but so is becoming part of a community. Social media makes the community experience portable, meaning you can take the ability to crowdsource and carry it around in your pocket. You can spend time with a group of like-minded business leaders and entrepreneurs right in the comfort of your own home.

 

You can start discussions on LinkedIn, even if your group isn't located in your backyard, you canstill connect personally.Video conferencing, discussion groups and even Twitter chats allow vast groups of people to connect in real time. Someone in this new online family might lead to an investment opportunity, a new idea or even just a shoulder to lean on when your entrepreneurial path gets bumpy.

Technology Tip from Sonia W. Gowen

 

Online Accounting Software

 

Are you ready for the cloud?  Cloud computing is becoming all the rage.  Many small businesses have moved all or a portion of their software to online programs or have their existing software hosted on a remote server.  One of the largest growing areas of cloud computing is in the accounting software area.  A wide variety of offerings are available to cover the smallest to the largest business, along with many specialty packages for different industries.  This article provides some information and considerations that may help you with a decision to take a step into the cloud.

 

What Is Online Accounting Software?

 

Accounting solutions track the financial transactions within an organization. Typical features include general ledger, accounts payable/receivable, payroll, and reporting modules. Specialty systems often have additional features dedicated to a particular market. These include fund accounting for nonprofits, commission calculations for sales-oriented businesses like real estate, rate analysis for banking, or claims scrubbing for medical practices.

 

Online accounting systems are specifically designed to be used through the Internet, rather than being installed locally onto the company computers. This reduces information technology requirements like server hardware, backups, and maintenance, and shifts the expenditure from being a large up-front capital cost to a much smaller, but ongoing, monthly or annual fee.

 

Benefits & Potential Issues

 

A web-based accounting system has a number of significant advantages over traditional on-premise software platforms:

  • Greater level of interactivity. Online bookkeeping software extends system capabilities with functions such as online payments and employee portals. An online accounting system can support a user interface for business employees and customers for communication and sales. Online payments save time by integrating with accounts payable/receivable and the general ledger to automatically update a company's books. Online employee portals can increase the flexibility of communication and collaboration.
  • Limited IT burden. Browser-based access for web accounting software avoids potential compatibility problems, which can sometimes happen when installing these kinds of programs locally to your system. In addition, the vendor handles all of the routine back-ups, upgrades, and maintenance, saving considerable time and money on IT infrastructure, a particular benefit for smaller businesses.
  • Lower up-front costs. Rather than paying a large installation fee, web-based systems come on more of a subscription basis. In one model, the user pays a monthly or annual fee, making it a low, but ongoing, operational expense rather than a capital one.
  • Data security. Web-based software vendors have stringent security requirements to ensure that your data is secure from hackers and protected from loss. Therefore, an on-premise crash, theft, or other hazard to the company's computers will not destroy the business accounting data. Many online accounting solutions also allow businesses to download their data locally, if that's preferred.

Although web-based solutions don't require the same investment in hardware as traditional software installations, subscription costs can accrue over time. The longer the software stays in use, the more the user pays, and after a few years the costs may exceed whatever would have been paid for an on-premise system. However many subscriptions include updates so that the software you use online is always the latest and greatest.  As with any major decision be sure to investigate the software thoroughly and be sure you understand the agreement before buying.

Thanks for taking the time to read our newsletter.  Stay tuned for next month's tips and features.

 

Sincerely,
 
Serotta Maddocks Evans, CPAs
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