ABOD & ASSOCIATES LLC
ACCOUNTING AND TAX PROFESSIONALS
BUSINESS PLAN DEVELOPMENT SERVICES
INTRODUCTION HOW OUR FIRM CAN HELP A METHODOLOGY FOR BUSINESS
PLANNING
In today’s highly competitive environment, As a professional accounting and tax firm,
formal business planning is essential to Abod & Associates LLC and our highly Comprehensive business planning evaluates
achieving business success. A well-written experienced professionals provide and helps management develop the analyses of
business plan is primarily a communication comprehensive accounting, tax, and the following areas:
tool to be used in obtaining financing. In management advisory services to a wide o Record of achievements
certain instances, particularly with early stage variety of companies in multiple industries. o Competitive analysis
companies, the business plan also serves as a Since its inception in 1984, the Firm has o Goal and objective setting
strategic plan. experienced dramatic growth due to its
outstanding reputation in the community for Constructive and useful business planning
With venture capital investors inundated by providing quality, timely service and for taking requires a broad-based understanding of
numerous investment opportunities from which a creative business approach to solving your changes taking place in the marketplace in
they choose only a few, a sound and company’s challenges. Abod & Associates which the company competes, or plans to
presentable business plan should be developed LLC has been a highly valued and integral compete, and the ever-changing financial
to immediately capture their attention. An team member in the success of several markets. In-depth technical skills in a variety
investor’s decision often turns merely by the emerging businesses. of disciplines such as tax, financial analysis,
contents and quality of the business plan. More sales, marketing, compensation and human
often, they are motivated by the experience and Our team combines expertise in tax, resources are critical components to assessing a
talent of the firm’s principals. accounting, finance, strategic planning, systems company’s opportunities and challenges. An
implementation and management. The independent perspective allows for the greatest
Besides providing facts and figures, an integration of these disciplines results in possibility for fresh and innovative thinking.
effective business plan enables investors to extensive and innovative services for our
understand the entrepreneur’s vision and clients. KEY BUSINESS PLAN AREAS
his/her ability to manage the venture through its
growth stages. Since very few new ventures Our substantial financial experience allows our I Executive Summary
succeed, investors need assurance that the Firm to develop effective and persuasive II The Company
management team has made an in-depth business plans that help our clients: III The Product/Service
analysis of its opportunities and threats as well IV The Market
as its strengths and weaknesses, and that the • Attract investment capital; V The Competition
company has an excellent chance to succeed. • Focus ideas and establish goals; VI The Marketing Plan
• Identify and quantify objectives; VII The Manufacturing/Operations Plan
• Track and direct growth; and VIII The Management Plan
• Create benchmarks for measuring success. IX The Financial Plan and Projections
ABOD & ASSOCIATES LLC
ACCOUNTING AND TAX PROFESSIONALS
BUSINESS VALUATIONS
INTRODUCTION WHAT IS “VALUE”? THE SCIENCE AND ART OF
VALUATION
Owners often make best-guess estimates of A business’s “market value” is by definition
their businesses’ value based on vague rules of somewhat subjective in that it depends on a Every business valuation presents unique
thumb, book values, or old valuation reports. number of variables. What’s more, there are at challenges and demands for creativity.
Relying on such informal, imprecise, and least seven different accepted methods of Because valuation is a complex process with no
potentially outdated measure can lead to valuing a business. Given this variability, the simple formulas or clear means to rely on, it
underestimates of worth and thus very costly outcome of a business valuation depends takes an experienced professional to keep
mistakes. largely on the judgment and experience of the abreast of all the ramifications of every
professionals who perform it. component of value. Actually determining a
Whether you are selling or buying a business; business’s overall value calls for a variety of
considering a merger, acquisition, or WHEN DO YOU NEED A VALUATION? methods tailored to each situation; selecting the
divestiture; planning your estate; or settling a appropriate ones and applying them creatively
contract dispute, it is simply good business While it is always in the best interest of any to the question at hand makes valuation a real
practice to seek an objective valuation. And, of business organization to measure its current art. Because valuation is not an exact science,
course, the methodology, accounting, and worth, in some specific situations an expertly its outcome depends on the judgment that goes
judgment of the professionals who make that established value is absolutely crucial. These into it and the documentation that supports that
valuation must be irrefutably sound to ensure situations include but are not limited to those judgment.
accuracy. involving:
We offer customized, closely held business
We apply the high standards for which our firm • Mergers, Acquisitions and Divestitures valuations by professionals with a wide range
is renowned to all valuations. No matter the • Business Planning of experience, training, and expertise backed by
size or nature of your business, our experts are • Litigation and Arbitration our firm’s commitment to independence,
committed to giving our clients valuations that • Marital Dissolution quality, hands-on experience with actual
are timely, supportable and credible. • Partner/Shareholder Disputes transactions enables them to apply hard
• Business Succession Planning evidence in valuations beyond the theory most
Our valuation professionals have the extensive competitors rely upon along. Business
• Buy-Sell Agreements
knowledge and experience to complete the valuations from HFM provide our clients and
• Estate and Gift Planning
valuation process quickly and responsibly and third parties with assurance and confidence
present the results in high quality reports • Obtaining Financing about the fair market value of every company
designed to help you act fast when time is we evaluate.
literally money. In addition, estimating a business’s worth
without up-to-date professional advice on the Our professionals have also served as expert
latest accounting tax and industry changes that witnesses in litigation and disputes regarding
affect valuations can lead to uninformed business value and loss profits.
decisions and expensive errors.
ABOD & ASSOCIATES LLC
ACCOUNTING AND TAX PROFESSIONALS
ACCOUNTING SERVICES
INTRODUCTION OUR SERVICES Assistance with existing computerized
accounting systems
Abod & Associates LLC is a full service Financial Statement Services • Monthly or year-end closings
professional accounting and tax firm offering • Compiling financial statements on a • Modification of financial statements and
services to individuals and organizations of all monthly, quarterly or annual basis accounting reports
sizes. Since our inception in 1984, our Firm • Maintaining accounts receivable and • Development of additional financial and
has experienced dramatic growth due to its accounts payable ledgers management reports
outstanding reputation in the community for • Record cash receipts, cash disbursements, • Data transfer to spreadsheets and database
providing quality, timely service. The Firm’s accruals and adjustments to produce a • Support
principal service areas include: general ledger or trial balance • Training
• Calculating depreciation and maintaining
• Small and Emerging Business Services schedules of depreciation of fixed assets Other Services
• Tax Preparation and Planning • Bank reconciliation’s • Consultation on financial statements
• Management Consulting Services • Account analyses and schedule preparation prepared in-house including analytical
• Auditing and Review Services • Depreciation and service area reporting review and business planning
• Government Services • Implementation and development of
Tax and Business Planning Services financial accounting systems
GROW WITH US • Business and personal income tax returns • Cash flow analyses and planning
and planning • Assistance with bank financing and
We provide accounting, tax and consulting • Succession and estate planning relationships
services for small-to-medium and emerging • Sales and use tax returns • Bookkeeping instruction and training
businesses in need of the following: • Personal property tax returns • Development and documentation of
• Other business returns accounting and internal control policies
• Tax planning and preparation for both the and procedures
owners and their business entity Assistance in establishing in-house • Assistance in preparing for audits
• Development of accounting systems computerized accounting systems • Temporary bookkeeping and accounting
• Assistance with existing or converting to • System needs analysis services
computerized accounting systems • Network configuration
• Management reports to assist in decision- • Selection of hardware and software
making
• Implementation
• Support
• Training
Abod & Associates LLC Services
CONSULTING SERVICES
INTRODUCTION with a signature stamp, and we will age OTHER CONSULTING SERVICES
your company’s accounts payable to
Abod & Associates LLC, founded in 1984, maximize cash flow and enhance cash In addition to receiving the services above at
specializes in providing accounting and management. reasonable costs for the benefits, with Abod &
consulting services to franchise businesses and Associates LLC your business also gets the
emerging companies. The firm has built an • Preparation of daily cash management expertise of a full-service accounting, tax, and
outstanding reputation among clients, fellow reports and analysis of cash flow. management-consulting firm. Our staff is
professionals, investors, and others in the trained and experienced in working with
business community through our high quality • Ensuring and reporting compliance with all owners and understands the needs of the small
of work and personalized service. franchise requirements. businessperson. In essence, you get the
personal attention of an experienced “Chief
HOW WE CAN HELP • Preparation of all applicable tax returns Financial Officer” looking over your accounts
including payroll, sales, personal property, and available to consult you on all the financial
At Abod & Associates, we structure our franchise, and annual federal and state management aspects of operating your
services to the particular needs of our franchise income tax returns. business, including troubleshooting when
business clients. We take a full “turnkey necessary and you pay only for the time you
approach” to your company’s financial-services INITIAL CONSULTING SERVICES need.
needs including:
We offer initial consulting services for TECHNOLOGY
• Setup of a computerized accounting franchise acquisitions including:
system that interfaces with your point-of- Our firm uses state-of-the-art technology to
sale system to poll all sales and payroll • Reviews of acquisition closing documents communicate with clients via the Internet,
information directly from their sources. to ensure proper allocation of the purchase mail, document scanning, facsimile, and
price to maximize tax deductions. voicemail. We can also deliver hard copies
• Compilation of monthly or other periodic overnight to both local and out-of-town clients.
financial statements including balance • Set-up of fixed asset depreciation and
sheets, combined and multi-unit operation amortization schedules for all applicable
statements, cash flow statements, and other costs incurred.
requested information such as graphs and
actual-versus-budget comparisons with • Assistance in the preparation of budgets
variances in dollars and percentages. and cash flow forecasts.
• Setup and full coordination of your • Establishment of chart of accounts and full
business’s payroll, internally or with an implementation of computerized
outside payroll service company. accounting and information management
systems.
• Complete accounts payable and bill-paying
services. A firm Director will issue checks
Abod & Associates LLC Services
CAFETERIA PLANS
This brochure has been designed to introduce you • The employee’s portion of the health • For those employees earning less than the
to the benefits shared by employer and employee insurance premiums. maximum amount taxable for Social Security,
alike through a Cafeteria Plan. Perhaps the best the taxes will be avoided on the amounts
way to explain Cafeteria Plan is to answer the • Medical expenses not covered by insurance. redirected by the participating employees to
most frequently asked questions on the topic. Typical expenses include eyeglasses, medical the plan.
examinations and insurance deductibles.
HOW IT WORKS • Insurance premiums may be reduced for those
• Adult and child day-care expenses. coverages, such as disability insurance and
Q. What is a Cafeteria Plan? workers’ compensation that are based on your
• Other insurance coverages, including dental employees’ taxable salaries.
A. A Cafeteria Plan is a written plan in which insurance premiums, disability and accident
participating employees can select qualifying benefits and group term life insurance YOU COULD SAVE UP TO 10% ON THOSE
benefits from a “menu” of choices. In most plans, premiums. TWO ITEMS ALONE!
the eligible employee has the following options:
Q. Do I have to include all of those features in • Your company may also recognize a
• To receive all compensation in cash my plan? reduction for any retirement plan expense
(profit sharing or pension plan) that is based
• To direct a portion of his/her salary to the A. No, you may choose to offer any of the on your employees’ taxable salaries.
Cafeteria Plan. The employee’s redirected benefits previously mentioned.
salary is “banked” by the employer in an • And, of course, our company can earn interest
account maintained for the employee. When Q. Why implement a Cafeteria Plan? income on the balances in the Plan throughout
an expense is incurred for one of the the year.
qualifying benefits, the employee is A. You should implement a Cafeteria Plan for
reimbursed by the employer from the dollars two primary reasons: The following example illustrate the savings to
in the “banked” account. These one employer:
reimbursements represent an additional 1. Your employees will save money.
benefit to the employee as they also escape 2. Your company will save money. The owner of ABC Company has implemented a
Federal, state, local and Social Security taxes. Plan for his employees. 30 employees participate
BENEFITTING YOU in the Plan and they each elect to reduce their
Q. What benefits can my company include in a compensation by $2,000 a year to pay for health
Cafeteria Plan? Q. How will my company save money? insurance premiums and other medical expenses.
A. Your plan can include all or any combination A. Your company can recognize the following
of the following: savings with a Cafeteria Plan.
•Annual salary reduction
$60,000
•FICA saved ($60,000 x .765%)
$4,590
•Estimate other savings @ 3%
Retirement plan contributions
Unemployment taxes
Insurance premiums based on
Compensation
1,800
•Interest income earned on Plan
Account balance (assume
average balance of
$5,000 x 6%)
___300
Total Benefit to Employer
$6,690
Q. What other benefits will my company realize
as a result of a Cafeteria Plan.
A. Because of significant cost increases for
health insurance and other fringe benefits, many
companies would like to change or reduce the
insurance coverages they provide to their
employees. A Cafeteria Plan can be implemented
at the same time a change is made and thus,
significantly reduce the impact of the change on
the employee.
Abod & Associates LLC Services
CHARITABLE CONTRIBUTIONS
Effective after January 1, 1994, the Internal prescribed by the Secretary of the Treasury, the generally is not sold in a commercial transaction
Revenue Service no longer allows deductions under charity reports directly to the IRS the information outside the donated context. This would include
Section 170 of the Internal Revenue Code for required to be provided in written substantiation. admission to a religious ceremony and also
Charitable Contributions of $25 or more unless the Currently, however, there are no regulations generally applies to de minimis tangible benefits,
donor has contemporaneous written substantiation establishing procedures for direct reporting by however, do not apply to such items as payment for
for the charity. In cases where the charity has charities to the IRS for charitable contributions of tuition for education leading to a recognized
provided goods or services to the donor in $25 or more. degree, or for travel services or consumer goods.
exchange for making the contribution, this Importantly, if the donor received nothing in return
“contemporaneous” written acknowledgement must Experience has demonstrated that there is no for the contribution, the written substantiation must
include a good faith estimate of the value of such prescribed format for the written acknowledgement. so state.
goods or services. Therefore, taxpayers may no For example, letters, postcards, or computer-
longer rely solely on a cancelled check to generated forms may be acceptable. The The organization may either provide separate
substantiate a cash contribution of $25 or more. acknowledgement does not have to include the statements for each contribution of $250 or more
donor’s social security number. Valuation of the from a taxpayer or furnish periodic statements
What is contemporaneous? That is, it must be donated property remains the responsibility of the substantiating contributions of $250 or more.
obtained by the donor no later than the date that the donor.
donor actually files a return for the tax year in Separate payments are regarded as independent
which the contribution was made. If the return is The written substantiation should also note whether contributions and are not aggregated for purposes
filed after the due date or extended due date, then the donee organization provided any goods or of measuring the $250 threshold. However, the
the substantiation must have been obtained by the services in connection with the contribution in Service is authorized to establish anti-abuse rules to
due date or extended due date. Clearly, when cash whole or in part and if so, must provide a present avoidance of the substantiation requirement
contributions in excess of $25 are made it is in the description and good-faith estimate of the value of by taxpayers who write separate small checks on
best interest of the donor to ensure that they receive the goods or services. Under the law, these are the same date. If donations are made through
some sort of substantiation from the charity. referred to as “quid pro quo contributions”. You payroll deductions, the deduction from each
should be aware that the law requires charities to paycheck is regarded as a separate payment. A
The responsibility for obtaining this furnish disclosure statements to donors for such charity that knowingly provides false written
substantiation lies with the donor “quid pro quo” donations in excess of $75. substantiation to a donor may be subject to the
who must request it from the charity. penalties for aiding and abetting an understatement
If the goods or services consist entirely of of tax liability under Section 6701 of the Internal
The charity is not required to record or report this intangible religious benefits, the statement should Revenue Code.
information to the IRS on behalf of the donor. In indicate this; but the statement need not describe or
truth, however, we find that most charitable provide an estimate of the value of these benefits. Clearly, these rules require additional substantiation
organizations are establishing programs to ensure requirements for taxpayers. If you would like
that donors receive receipts. What are intangible religious benefits? An assistance in determining how these rules
intangible religious benefit must be provided to the specifically impact you, please feel free to contact
The law provides that substantiation will not be donor by an organization established exclusively us.
required if, in accordance with regulations for religious purposes and must be of a type that