Greetings!
 As we welcome the warmer temperatures and the sounds of spring - from songbirds to lawnmowers - we all have a sense of new growth. This is also a time for business owners to focus on growth and changes to the business landscape.
Our May issue deals with growing a business, both the challenges and the opportunities. The professionals at SDK are here to help business owners, and we've highlighted a few ideas below. As always, contact us with any questions or opportunities. |
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Save-The-Date - Family Owned Businesses
Thursday June 11, 2015 from 3:00 PM to 5:00 PM
The Depot Minneapolis
Our quarterly series continues with a focus on family-owned businesses. As businesses evolve, the need for future planning, including succession and exit strategies become more and more important.
SDK's family business advisors will join forces with partners who also work with family business owners to discuss the alternatives and challenges. Stay tuned for more details.
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The Research and Development Tax Credit - not just for scientists!
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Lesser known tax credit can benefit businesses
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Do you know that the IRS and State of Minnesota both give significant tax benefits to businesses  who engage in activities resulting in new or improved products, processes, formulas or patents?
The stated purpose is to incentivize businesses that commit resources to come up with new products and ideas in this ever changing world economy. It is felt that these businesses will be the ones to provide long term jobs in the US and Minnesota, for our current and future labor force.
The tax benefit is called the "research and development tax credit," and it is calculated as a percentage of wages, supplies and contract expenditures engaged in "qualified research activities."
Read full article here
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The Importance of Ethic Programs in Growing Businesses
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A good ethics program can help guide your company through times of increased stress, such as rapid growth, and decrease your firm's susceptibility to misconduct.
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 Do you know your company's risk of ethical misconduct? The following are some interesting statistics from the most recent National Business Ethics Survey conducted by the Ethics Resource Center (ERC):
- 41% of private-sector employees witnessed misconduct at their organizations during the 12 months preceding the ERC study. This finding is a record low for the ERC's surveys and reflects some potential good news regarding the effectiveness of many organizations' ethics programs.
- 9% of employees reported feeling pressure to compromise their ethical standards on the job, a decline from 13% in 2011.
- 60% of the incidents of observed misconduct were perpetrated by supervisors and managers.
- 67% of the misconduct involved multiple acts or ongoing unethical behavior, revealing the need for companies to continue taking proactive steps towards building an ethical culture.
SDK has a robust forensic accounting and valuation services team. Contact Jennifer Schiefert for more information.
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Why paying in cash is not a good idea
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 - Cash is not a good record for tax or budgeting purposes
- Cash is easier to steal and is virtually untraceable
- Identity theft is easier from criminals taking information off of checks
- Credit cards can be beneficial from a budgeting standpoint, as long as balances are paid off monthly
- Credit cards offer cash back bonuses or awards points
So you see, it seems to make "cents" to not use cash. |
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Know your sustainable growth rate
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Watching the bottom line of your business
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 As a business owner knows, cash will ebb and flow with the growth of a business, affecting profitability and the need to reinvest back into the company. There is a limit at which you can effectively grow your business, and it is dependent upon profitability and how much of those profits you retain. Most business owners know what their breakeven point is, however, do you know what your sustainable growth rate is? The sustainable growth rate is the rate at which you can grow before additional outside capital is needed. It is calculated by taking the retention ratio (profits, excluding dividends paid) times the return on equity. For instance if the company retains 60% of its profits and has a return on equity of 20%, the sustainable growth rate would be 12% (60%x20%). Read the full article here |
News from Accounting Services
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Bookkeeping keeping you up at night? We can help
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 As your business grows, your need for strong advisers becomes increasingly important. Perhaps you still do your own bookkeeping, but have questions or need help with a reconciliation. SDK's accounting services team can help. In addition to Quickbooks expertise, our team can help you determine when your business needs to hire a bookkeeper, or perhaps replace an employee. We will discuss specific needs of your business and the qualifications necessary for the accounting position in your company. SDK will write and post a custom ad, contact potential candidates and schedule interviews. We conduct the first round of interviews and recommend the top candidates. You conduct the second interviews, focused on the "right fit" for your company. Let us help you solve your technical issues, determine staffing needs and find your next bookkeeper so you can focus on running and growing your business! Contact Pam Brackeen or any member of the accounting services department. |
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SDK News - a very successful "busy season"
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Working long hours, researching tax rules, taking short competition breaks
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 Whew, another tax season is behind us! With much planning and preparation, SDK had a successful and enjoyable tax season this year. Even though overtime hours were put in by everyone, we still managed to keep a fun atmosphere in the office. We work hard for our clients, but we also like to play hard! Here are just a few things that we did to keep SDK an enjoyable place to work during this busy season: -Dinner was brought in once a week -Dessert day happened each week -Massage Days, need we say more? -Sponsored firm event at Park Tavern to celebrate the March 15th deadline -Minute to Win it Competition -NCAA March Madness brackets -Bingo, Connect Four, and other board games -And of course, our final April 15th deadline party!  In addition to keeping the office fun, we completed more tax returns this busy season compared to last. We contribute our successes this year to hours spent planning by our management team, encouraged input from staff, and a can-do, teamwork attitude demonstrated by everyone. Check out our facebook page for more photos.
If you have questions or need more information on your taxes, contact your representative or any member of the tax team. |
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We welcome your comments and feedback, and will do our best to answer your questions. Contact your SDK representative or send a note to one of us and we'll be sure to find the right person to assist you.
SDK's Editorial Board
Emma All Runner, Accounting Services
Beth Johnson, Marketing
Ron Kelner, CPA, Tax
John Lawson, CPA, Audit
Allison McCloskey, Tax
Jennifer Schiefert, CPA/ABV/CFF, CFE, Forensic & Valuation Services |
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