Risky Business

Statistics show that many new businesses fail in their first year.  Most never celebrate a fifth anniversary.  Fortunately, in spite of these odds, entrepreneurs still pursue creative ideas, and many do succeed!  Over ninety percent of American businesses have some form of family ownership, and that includes approximately one third of the one thousand largest publicly traded companies.

Small business isn’t small anymore.  It’s a critical segment of our economy, led by the power of new ideas and the untiring efforts of entrepreneurs.  FOB’s (family owned businesses) and closely held businesses (five or less owners) contribute to more than fifty percent of America’s Gross National Product.  Companies with fewer than 100 employees create more new jobs than large corporations, and FOB’s pay more than seventy percent of U.S. wages.

But, hard work is not enough.  That’s why entrepreneurs rely on Certified Public Accountants as consultants to advise them on a broad range of subjects (financial management, tax planning and compliance, information systems, raising capital, succession planning, etc.)  CPA’s rank as the most trusted business advisors.  Why this high level of trust? Performance!

We are also entrepreneurs, along with approximately 350,000 American Institute of Certified Public Accountant members, over half of them owners or partners of their own business.  It is another reason why we understand risk and creative ideas.

FOB’s and their related closely held businesses have an average life span of twenty-four years and only a third of them survive to the second generation, ten percent to the third generation.

Why? - The lack of time, money, energy, the dual role of family member and business participant, the letting go syndrome, selecting a successor, retirement, fair and equitable treatment of all family members, including those who are not involved in the business and most important, the lack of planning and communication.

…and on top of all this you have taxation!

The tax laws have not been made simple.  Despite recent attempts at tax reform, simplification and stimulus packages, the laws are still very complicated.  Americans know that taxes are part of the price they pay for freedom; however, each of us has the right to pay only the minimum amount of tax due.  In order to accomplish this, you must determine what income is reportable and what expenses are properly deductible.  Because we know the tax laws, we can help reduce the impact of taxes on you, your company and your estate, by planning ahead with tax compliance conferences.

…and what if the tax man calls?

Our firm can handle all forms of tax audits and appeals for businesses and individuals at the federal, state and local level, as your CPA representative.

…and how do we stay current?

As members of the AICPA, and to maintain our licenses, all of our CPA’s, CFP^® professionals and licensed PA’s are required to complete forty hours annually in continuing professional education on accounting, taxes, ethics, management and other business related subjects.  The firm is subject to a tri-annual Peer Review to ensure that the strict quality standards of the AICPA are met.    We write and edit our own newsletter, conduct seminars and lectures and encourage client meetings to help clients become more informed.  We strive to simplify the complex tax laws for our clients.  Our commitment to continuing professional education assures clients of our efforts to keep staff and clients informed. This means that O’Malley & O’Malley, LLP will continue to work harder to provide the sound, professional advice that you require. 

MAY THE ENTREPRENEURIAL SPIRIT LIVE ON