Many small business owners focus on generating more revenue every year, and that’s a great objective. But not all revenue is created equally. If you sell more than one product or service in your business, then you can benefit from looking at your revenue mix. Although it’s fun to watch our revenues grow, it’s the profit number that really matters. If your expenses grow faster than your profits, then you have a lot of activity going on, but you don’t get to keep as much of what you make, which is what really matters. An insightful exercise to try is to take a look at your revenue mix. Then you can ask “what if?” to optimize your profits. Your Revenue Mix Let’s say you offer three different services: Services X, Y, and Z. Your revenue pie looks like this: X: $1.4 million or 70% of the total Y: $0.3 million or 15% of the total Z: $0.3 million or 15% of the total Total: $2.0 million In this example, Service X is clearly the service making you the most revenue in your business. But is it making you the most profits? The profit you receive from each of these service [...]
Tax Musings of a Burbank CPA: California’s Tax System is Out Of whack!
You might not always agree with Dan Walters of the Sacramento Bee, but he never pulls punches and says what he thinks. Here he talks about various tax inequities in California’s income tax, especially the legislature not extending the exclusion which treats a cancelation of debt by a lender on a principle residence as a non taxable event: http://www.sacbee.com/2013/11/11/5897655/dan-walters-californias-tax-system.html I agree with him that this bill, which got weighted down with another bill that practically guaranteed it would not be passed in the state assembly, should have been passed unanimously, since it helps forclosed homeowners not have to pay taxes on forgiven debt. The legislators in Sacramento got it wrong again! For financial, accounting and tax musings, You can count on us to count for you! email: bstonercpa@sbcglobal.net phone: 818-317-6035 Website: www.briantstonercpa.com https://twitter.com/bstonercpa
Musings of a Burbank CPA: Year-End Family Business Strategy and Preparation
So your family business has been going strong – now is the time for some reflection as well as future planning. See this article By Allen Hovious, President, LBMC Planning Services and posted by Terri Eyden in AccountingWeb: http://www.accountingweb.com/article/year-end-family-business-strategy-and-preparation/222646 If you don’t take the time to plan now, you risk some problems in the future. Call or email me if I can help. For financial, accounting and tax musings, You can count on us to count for you! email: bstonercpa@sbcglobal.net phone: 818-317-6035 Website: www.briantstonercpa.com https://twitter.com/bstonercpa