Periodically we are asked this by clients. Very rarely is the answer “do it yourself”.  Like any game, we must know the rules and how to play it.

We have assisted several clients after an attempt at self-representation. Many of these are returns we did not prepare. Everyone likes their guy or gal until the heat is on.  This is not to say never do it yourself, just usually. We should all have an idea as to what is at stake on the return. A meeting with the preparer or another trained eye can usually determine areas of exposure. The trap is one wrong answer and Pandora’s box could be opened causing expansion of the audit. One big advantage of having a representative is truly saying,  “I do not know and we will get back to you”. Intimidation is another issue. Not knowing the rules or how to argue them leaves someone at a disadvantage. Go to an IRS office sometime and notice many people in it do not have representation and it likely does not work well for most of them.  We know when the IRS is unreasonable and needs to be stood up too, whereas you probably do not. We buy insurance hoping to never use it; audit representation could be the insurance to avoid the big claim. Better safe than sorry! Learn more, at www.gyldecauwerblog.com or Tel: 909/948-9990

Debt seems to consume headlines worldwide these days. Greece and all of Europe are battling this issue. Our United States was downgraded earlier this year. There is commonly thought to be good and bad debt. If attached to an asset hopefully an increasing one is viewed as good debt.

Credit card or other debt not attached to an asset is commonly thought bad. Sometimes good becomes bad when an asset value declines faster than the debt . The key is having a plan to pay it rather good or bad. Many businesses use debt to finance AR and Inventory which hopefully makes them money and keeps them afloat. Awareness and management of debt is the key in any arena including yours. Ask how GYL Decauwer can help. www.gyldecauwer.com Tel: (909) 948-9990! Get 10% off our services when you mention you saw us online.

This was first created in 1935. At the time the earliest retirement age was 65 this was slightly more than the life expectancy. Today recipients can start retiring at the age of 62 and can expect to live another 17 years.

Things we can expect to see over the coming years:

The wage base going back only 10 years ago was $76,200. Today the wage base is an average of $106,800; expect to see this continue to climb.

Wealthy Retirees:

Today the wealthiest receive the highest payouts as they normally pay the maximum for many years. Changing this formula to penalize the wealthy could greatly impact this payout. Certain folks doubt the strength of this program which is fair, longer lives will impact any retirement calculation. Since a host of options to strengthen this exist count on getting yours with a slightly different set of rules as the younger generations get closer to their golden years

Contact GYL Decauwer and let us show you how we can help you discover your tax savings.  www.gyldecauwer.com Tel: (909) 948-9990!  Get 10% off our services when you mention you saw us online!

How you can save your tax dollars if you have a Foreign Annuity/Life Insurance Policy

Do you have a Foreign Annuity/Life Insurance Policy? Do you know what you should and shouldn’t be taxed on? GYL Decauwer specializes in helping clients determine how to deal with tax related issues and can help you determine if it is a non-taxable or taxable return of principal. Fact: Jane Doe is receiving proceeds from a large foreign annuity life insurance policy. Her prior accountant was reporting the proceeds as taxable income for some time. Due to GYL Decauwer’s strong tax team it turns out that the majority of the cash flow was considered non-taxable return of principal. Under certain US statutes you may be protected, but if not identified soon enough, you may not be eligible for a refund on the taxes paid in previous years. Contact GYL Decauwer and let us show you how we can help you discover your tax savings.  www.gyldecauwer.com Tel: (909) 948-9990!  Get 10% off our services when you mention you saw us online

What makes GYL Decauwer LLP different from other accountants?

 I consider myself a business person who practices accounting not an accountant.  This means I act and think like a business person.  Accountants are trained to follow the rules.  Business people are always bending the rules to work for them.  Accounting is all rules and a thousand exceptions so this is where we need to be.

Our guarantee also separates us from the masses.  Pay us what the perceived value of the work is.  Our guarantee shows our confidence in meeting or exceeding our client’s expectations. 

One of our mottos is “we provide solutions not excuses.”  Rather than saying no it can’t be done, lets figure out how to do it!

What type of accounting services do you offer?

RANCHO CUCAMONGA, CA – My first answer is we do the type of accounting you need, customized to fit your business.  Tax services seem to dominate the minds of many business owners since it happens every year.  Every business requires an annual tax return or the income can be included in your individual return annually.  Tax planning can be a year round activity to regulate and bring the unexpected into focus.  Consulting with business owners on their accounting is also an ongoing event – once the account is reconciled, the interpretation begins.  Making sure the ownership understands the result and how it occurred is important.

There are several levels of financial reporting a CPA can perform. The first and most prevalent is the compilation.  The next level is review and the highest level of reporting is the audit.  Banks and third party users are namely the reason companies are required to issue financial statements for other than their own use. Sometimes disclosures are required on all three levels of reports to highlight and better explain significant parts of the financials.  A public company notes can go on for fifty to one hundred pages in some cases, likely three to six for most small companies.  The basic cost for financial statements are – a review costs twice the price of a compilation and an audit normally twice the price of a review.  Make sure your accountant is qualified to issue an opinion if needed.  I recall a recent experience in which a banker shared with me that the bank received an opinion from a bookkeeper.  Only CPAs are able to issue opinions on financials.  The bank was misled which could have caused issues for both the company and the bank.

By:  Stephen C. Williams, CPA – Partner

How does technology impact our accounting?

RANCHO CUCAMONGA, CA  Technology is at the forefront in accounting.  Most everything is computerized today.  Basic transactions can still be handled manually but anything with volume warrants automation.  There are good inexpensive programs available to business owners today.  QuickBooks seems to be the software of choice for small business today.  I would estimate that 80% of our clients use this software.  It is not expensive and is easy to use.  Automation should be at the top of the list for a new small business to invest in.  Accounting problems and lack of documentation is much more prevalent when automation is not used.  The gaps and holes appear and time has a way of making everything blurry.  The set-up means everything in accounting and having an accountants perspective on this can make things easier as the business moves forward.

 Too much detail will bog down the process.  I tell business owners that a one page summary is easier to interpret than a 10 page one.  Since most of us will not spend a lot of time in accounting we want the most information in the shortest time period.  On the contrary there can also be too much automation too soon.  An expensive software and computer system may be too much for a small business that is not ready to utilize it.  We must try to look ahead but not lose sight of what has occurred.

You don’t have to be in Rancho Cucamonga, the Inland Empire or even Southern California to be helped.   GYL Decauwer LLP has clients all over the United States.

By:  Stephen C. Williams, CPA – Partner

Why is Accounting Important to Me?

A business owners’ accounting is the fuel that keeps the engine running. Not understanding profit and cash flow can fatally injure a business and has injured many since it is optional and not required. Accounting is put off and ignored by many and there are lessons to be learned if we look at the numbers.

We all have an emotional bond with our business numbers. An accountant takes the emotion out and forces us to look at reality. Since none of us like change and many do not understand accounting, this can lead to failure to take action on a timely basis.

A business that has declining revenue normally has a hard time decreasing variable costs fast enough to keep pace with the declining revenue, accelerating the loss in many cases. Looking at profitability per client is also an interesting exercise. Some clients take more resources than others, thus costing more to maintain.

Lifetime value of a customer is another important subject. If the average accounting firm client stays 7 years and the annual revenue is $5,000 that client has a lifetime value of $35,000, which would be looked at differently than the $5,000 alone. Another important accounting related item you should know about your business is what are your key performance indicators? The things that indicate health or lack thereof. If our firm’s average billable rate is increasing we are becoming more efficient. If the opposite, then why, and what can be done about it. Each business has its own set of KPIs, all businesses need to know their numbers, as there is a saying “we can only manage what we can measure!”

By:  Stephen C. Williams, CPA – Partner

By:  Stephen C. Williams, CPA – Partner

Accounting is a personalized service similar to a finger print with no two being exactly alike.  The client can greatly influence cost by their internal capabilities and willingness to simplify or complicate the job at hand.

My view with accounting is usually less is more.  Fewer general ledger accounts mean less reconciliation and categorization which also can translate to cost.  Accountants must also factor risk into the equation.  In times like these there is a propensity for suing accountants in today’s world.  There is a debate at times if accounting is a science or an art.  My view lies in the art side as there are many rules but an ever greater number of exceptions.  If you’re not playing in this area then you are not fully engaged.  Intent has a great deal of influence in tax law – additionally ordinary and necessary can be truly different for each business.

Since we guarantee our clients’ satisfaction we try to take the risk away from this question. Ultimately a client greatly influences the final product by how much contribution they can provide coming from their internal capabilities.  We only do what the client cannot or chooses not to do.

By:  Stephen C. Williams, CPA

This can be as mysterious as the complexity of accounting itself.  Many times I think the attitude is “they know more than I do so they are hired” – only when resources are needed is it apparent more expertise is needed.  Many times a small business will choose a small accounting firm, which is fine.  The problems start when the business grows but the accounting firm does not, we see this frequently in our interactions.  Businesses must not be afraid to change their accountant when they see they are outgrowing their accountant.  Asking other business owners you trust is a good place to start.  Asking an accountant a few simple questions to ask an accountant can also be helpful.

 1)      Who handles my account when you are gone or not available?

2)      Do you have a network of professionals for things beyond your expertise?

3)      What type and size of clients do you work with?

4)      Do you guarantee anything about your service?

5)      Ask to speak to clients they feel would be similar to you that they serve.