 |
| Dear Mark,
Lately it seems as if the evening news,
government spokesmen, websites and even newspapers
(yes they are still around) have been reporting
news and speaking out of both sides of their
mouth. For instance, the Federal Government
(President, Federal Reserve, etc.) have been
hailing for months that the recession is over and
no double dip recession will occur. A
jobless recovery seems to be a natural component
of a service based economy. So, if the
recovery is on the way, why is the Federal
Government now pushing job creation
initiatives? This could indicate the
recovery is either not very strong or a double dip
recession is more likely than the government would
like to acknowledge.
Although the recovery may be helping large
corporations, small businesses still have
challenges in the year ahead. Our research
indicates unemployment will continue to stay above
9% for the entire year, trying to find working
capital (line of credit or new capital) will
remain difficult and revenue stabilization and
growth will require new strategies. We
believe the small business environment will
continue to be challenging for at least the next 3
to 5 years. We need to continue to stay
financially conservative, repair our financial
conditions and leave one eye open for
opportunity. In summary play defense, until
the right moment to play offense appears, strike
at the opportunity and then play defense once
again.
Best of luck,
Mark Wyssbrod, CPA
|
| Know When To Stand Up &
Clap & When To Shout "You Lie!"
The Outcome of Economic
Predictions |
 No, this is not an article to
Congress and the Supreme Court Justices regarding
manners for a presidential address. But it
is an article to identify the good and bad
financial news which continues to bombard us for
2010.
GDP Growth for 2010
o US Government Projection
3%
o Wall Street Projection
2%
o Bill Gross, founder of Pimco,
believes long-term growth will remain
stagnant.Mr. Gross believes the "new normal" of
slower growth is due to deleveraging (repaying
debt), re-regulations (which is in the starting
phase) and de-globalization.
o The government gets a "You
Lie!"
4th Quarter GDP
5.7%
o Applauded in news
o Much
slower growth from recoveries in
past
o 3.4% of the 5.7% growth came due
to inventory rebuilding. Dave Rosenberg of
Gluskin, Sheff believes the adjustment to
inventories is not the beginning of a new cycle,
but a realignment of merchandise in
stock.
o The 5.7% growth is awarded the
"You Lie!" trophy!
Economists Projections For
2010
o The year has started out much more
changing than most economist predicted.
o 9 of 10 economists predicted smooth
sailing for the first 6 months of
2010, they predicted a challenging last 6
months of the year.
o Kopin Tan
statement on the market's sentiment "there was
no shortage of good news, only a dearth of
buying in response."
o The economists
get a "You Lie!" on their
resume
Unemployment Decreases From 10% TO
9.7%
o Even better the U-6 report (the
broadest measurement of unemployment) has
decreased from 17.3% to 16.5%
o The
unemployment, although scheduled to stay above
9%, is showing signs of improvement through a
decrease in layoffs
o We get to "Stand
Up & Clap" for the unemployment
improvement!
Continued Sacrifice to
Improve Financial Position
o There are two major dark clouds over
hanging the
economy
1. The
financial condition of the American
householder
2.
The financial condition of our banking
system
o The household faced a
debt-to-income ratio at 140% (a 35 year high)
and then saw 20% of their net worth disappear
due to the bear market in equities and
decreasing residential
properties.
o Households are spending
less, paying off debt and saving
more
o We get to "Stand Up and
Clap!" Although, let's not pat ourselves
on the back quite
yet.
|
| Corporate Deadline
Reminder!
Important Dates
and Events to
Remember |
 It is the time of year where
compliance with deadlines looms around for
businesses. Here are some of the deadlines
you might have:
-
Businesses with annual year
ends (12/31) need to file their tax returns or
extensions by March 15th!
-
C-corporation tax payer may
need to remit tax payments
-
Many counties require
businesses to file for business licenses and
business personal property tax returns
-
Secretary of State's require
you to file an annual report and remit an annual
fee.
Don't let these deadlines
pass you
by! |
|
| IRS Circular 230
disclosure: To ensure compliance with
requirements imposed by the IRS, we inform you
that any U.S. federal tax advice contained in this
communication (including any attachments) is not
intended or written to be used, and cannot be
used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting,
marketing or recommending to another party any
transaction or matter addressed
herein | | |
|
| Financial
Ratio of the Month - Fixed Asset Turnover
(FAT) |
|
FAT ratio indicates how well management
uses fixed assets. The ratio also indicates
if the business owes the right fixed
assets.
FAT = Sales / Gross Fixed
Assets
The higher the FAT the more effectively
management and the company is using their fixed
assets.
|
| Contact Information
11770 Haynes Bridge
Road
Alpharetta, Georgia
30009
phone:
(770)
664-8583
fax:
(678)
762-9413
web:
|
| |
