Testimonial:

"As always, I am 110% satisfied and I appreciate how well you take care of Diana and I."

J.B. Monterey, CA

Frequently Asked Questions

Q. How do you set your fees?

A. I have four basic levels of service: copper, bronze, silver, and gold. My fees are charged on a fixed price basis for all routine services.  You can control the cost of your services by choosing the amount of work you do for yourself and the amount of work I do for you. You can change your level of service at any time to suit your needs. Special services, such as Chief Financial Officer and tax audit representation, are charged on an hourly basis.

Q. Can you provide anywhere, anytime access to our accounting system so we are not tied to our office?

A. My firm specializes in online accounting and payroll systems that let you access your records from any internet connection at any time of the day or night.  I recommend invest in "air card" service for your laptop or notebook computer so you can access the internet while you are out of your office.

Q. What kind of business organization is best for my business?

A. Every business has its own unique characteristics and needs. There is not a one-size fits all answer to the form of organization that is best for your business. There are legal, accounting, tax, management, and strategic objectives considerations to be taken into account before choosing the form of organization that is the best overall fit for your business.  While a sole proprietorship is the easiest and fastest way to set up your business, it is fraught with unlimited personal liability and unlimited taxation on earnings.  A sole proprietorship is not recommended for any business.  The other forms of organization are corporations, including C and S, partnerships, limited partnerships, and limited liability companies. Your form of organization should be chosen after consulting with your legal, accounting and tax advisors.

Q. What kind of financial reports should I have for my business?

A. A well managed business prepares and analyzes a full set of financial statements at least quarterly. Do not wait until the yearly income tax return to find out how your company is doing.  By then, it is too late to make changes in your business practices that will lessen your tax liability or improve profitability for the year just ended. The four basic financial statements every business should have are:

• Income Statement showing profit and loss
• Balance Sheet showing assets, liabilities, and shareholder equity
• Statement of Cash Flows showing sources and uses of cash
• Statement of Changes in Retained Earnings showing changes in shareholder equity

It is advisable to get this additional information with your financial statements to aid management decision making:

• Forecast of cash flow covering the next 12 months
• Key financial ratios and management metrics:
  • Working Capital ratio: the excess of current assets over current liabilities
  • Acid-Test ratio: measures how well a company can pay its current liabilities without selling off inventory
  • Accounts Receivable Turnover ratio: gauge of how well receivables are turning into cash
  • Inventory Turnover ratio: a measure of how many times during the year inventory was sold out
  • Average Sale Period: measures the average number of days it takes to turn over inventory
  • Times Interest Earned: measures the company's ability to continue paying interest on debt
  • Debt-to-Equity: measures how much of a company's assets are provided by creditors per dollar of assets provided by shareholders

Pursuant to U.S. Treasury Department regulations, unless otherwise indicated, any federal tax advice contained in this communication, including any attachments and enclosures, is not intended or written to be used, for the purpose of avoiding tax-related penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any tax-related matters addressed herein. Information contained herein does not constitute tax or legal advice. You are advised to consult with qualified tax and legal advisors for advice specific to your individual situation.