The Short-Term Focus This Year and Next Tax Savings Accounting Issues Sarah Loewen Neufeld, C.G.A. Manager, Assurance Services January 26, 2009

Chartered Accountants and Business Advisors mnp.ca Who is on your team?

Chartered Accountants and Business Advisors mnp.ca Banker is your friend Loan covenants are there for your protection There may be room to negotiate Relationships may be worth more than saving a % or 2

Chartered Accountants and Business Advisors mnp.ca Accountants are not just bean counters Get the “real” thing Must have many years of education after their bachelor’s degree as well as years of practical experience Must have liability insurance Professional development Specialists are used when needed

Chartered Accountants and Business Advisors mnp.ca CA, CGA or CMA?

Chartered Accountants and Business Advisors mnp.ca How to use your Accountant Do your own bookkeeping Look at the big picture Advice on the short-term and long-term Do you know what else your accountant can do for you?

Chartered Accountants and Business Advisors mnp.ca Bookkeepers – Your front-line person and commonly taken for granted Don’t waste your money on your accountant for this work Going rate is $40+/hour in Steinbach, $60- 80/hour in Winnipeg What do they do? Your accountant cannot do your bookkeeping and your financial statements

Chartered Accountants and Business Advisors mnp.ca You are not married to these people! Shop around until you find one that meshes with you Most professionals are priced the same Find the best ones and never let go!

Chartered Accountants and Business Advisors mnp.ca Do you have a plan?

Chartered Accountants and Business Advisors mnp.ca When to plan What to plan

Chartered Accountants and Business Advisors mnp.ca 1 year – What can be trimmed to improve on expenses? Is your gross margin decreasing? Is that new product costing or contributing? Analysis your accountant can help you with Cash flow Purchase capital assets

Chartered Accountants and Business Advisors mnp.ca 5 year – What kind of growth can be sustained? Can you get the right employees Physical space Where/how do you want to grow? Where do you see the market going? Are you doing business in the U.S.?

Chartered Accountants and Business Advisors mnp.ca 10 year – much like 5 year with succession issues and cash flow security If you’ve made it this far … Where are the profits going? Tax planning issues both corporate and personal

Chartered Accountants and Business Advisors mnp.ca How is the corporation set up? Are you saleable? Do you need re-organization to sell/shut down? Get advice before you set the wheels in motion See a professional Major bucks at stake here

Chartered Accountants and Business Advisors mnp.ca The next step of growth Working capital issues Expiring tax losses – different than accounting losses Tax free income Amalgamation

Chartered Accountants and Business Advisors mnp.ca Succession/sale of business What would you like to do? Is there family involved? Could take years or just weeks

Chartered Accountants and Business Advisors mnp.ca Where is your cash coming from? Are you financing? You want a comfortable retirement What are your sources for cash?

Chartered Accountants and Business Advisors mnp.ca Other issues What are your assets and liabilities really worth? Time value of money Sell the assets or shares $750,000 CGE vs. capital dividends Preferred shares in a freeze

Chartered Accountants and Business Advisors mnp.ca How do your spend you day? Cost/benefit analysis to be done What is your time worth? Do you delegate? Can your really be good at everything? Do you have time to plan for the future?

Chartered Accountants and Business Advisors mnp.ca Pay what the person is worth Not what you would like to pay them The right person will earn back the extra pay and more Hire an outside contractor or hire a staff person Be educated re: human resources What is the market bearing? Are you being interviewed?

Chartered Accountants and Business Advisors mnp.ca Take Control – You are the CEO so act like one!

Chartered Accountants and Business Advisors mnp.ca Do you understand how your business is performing? Leakage The what if’s Are you actively participating?

Chartered Accountants and Business Advisors mnp.ca Small issues that add up Missing deductions and opportunities Do you need to pay EI or Workers’ Compensation? When to incorporate? Trusts? Educate yourself Have an annual meeting

Chartered Accountants and Business Advisors mnp.ca Suck it up Princess The day to day stuff Must have good books Avoid audits Decrease accounting fees Better planning information for you

Chartered Accountants and Business Advisors mnp.ca Networking Chamber of Commerce Networking groups/women’s groups Farmer’s do this best! Get that outside view looking in

Chartered Accountants and Business Advisors mnp.ca Networking Are you the exception? New ideas for competing Other ideas, better ideas Fresh perspective

Chartered Accountants and Business Advisors mnp.ca Free advice Talk to suppliers/mentors/competitors Utilize trade shows, industry meetings Make time for coffee! Education and professional development

Chartered Accountants and Business Advisors mnp.ca Summary Who is on your team? Do you have a plan? How do you spend you day? You are the CEO – so act like it! Networking