CPA Mobilization Kit: Small Business
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Small Business
Tips For Getting Started
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Getting Started
• Stick to What You Know
• Learn the Details
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Choose an Organizational Structure
•
•
•
•
Sole Proprietorship
Partnership
Corporation
Limited Liability
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Getting Started
•
•
•
•
Name Your Business
Write a Business Plan
Find the Best Location
Get Funding
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Getting Started
•
•
•
•
Make it Legal
Insurance
Commitment
Lean on Experts
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Tax Tips for Small Business
•
•
•
•
Auto Expenses
Home Office
Legal and Professional Fees
Meals and Entertainment Expenses
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Tax Tips for Small Business
•
•
•
•
•
Travel Expenses
Expensing Deduction
Insurance Premiums
Bad Debts
Retirement Plan Contributions
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Tax Tips for Small Business
• Interest Payments
• Hire a Family Member
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
How to Finance Your Business
• Do Your Homework
• Research Your Funding Options
–Short-term debt
–Long-term debt
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
How to Finance Your Business
• Debt
–Bank Loan
• Equity
–Private “Angel” Investor
–Venture Capital
–Selling Stock
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Preparing Your Business Plan
•
•
•
•
Executive Summary
Company Description
Market Analysis
Operations Overview
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Preparing Your Business Plan
•
•
•
•
Marketing Plan
Management Team and Staff
Financial Statements and Projections
Review with a Professional
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
What Lenders Look For
• Character
• Capacity
• Capital
• Collateral
• Conditions
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Get Your Financial Statements in Order
• Personal Financial Statements
• Balance Sheet
• P/L Statement
• Cash Flow Statements
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Explore Economic Development Programs
• Federal, State and Local Programs
• Small Business Administration
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Insurance for Small Business
• Your Business is Worth Protecting
• Mandated vs. Optional Insurance
• Business Owner Policy (BOP)
–Property
–Liability
–Business interruption
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Insurance for Small Business
• Property Insurance
–Building and Equipment
–Valuable Papers
–Crime
–Business Interruption
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Insurance for Small Business
• Liability Insurance
–General Liability
–Professional Liability
• Key Person Coverage
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Insurance for Small Business
• Group Health Insurance
–Medical
–Dental
–Vision
–Life
–Disability
–Long-Term Care
• Workers’ Compensation
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Small Business Retirement Plans
• Simple IRA
• 401(k)
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Small Business Retirement Plans
• Profit-Sharing Plan
• Money Purchase Pension Plan
• Defined Benefit Plan
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Selling Your Business
• The “Right Time” to Sell
–Scan the Environment
–Is Your Business Ready?
–Time it Right
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Selling Your Business
• Finding Buyers
–Competitors
–Customers
–Vendors
–Suppliers
–Investors
–Entrepreneurs
–Family
• Maintaining Records and Confidentiality
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Selling Your Business
• Determining the Business’ Worth
• Seeking Professional Help
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Business Succession
• When to Start Planning
• Transfer of Power
• Transfer of Assets
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Succession Planning Alternatives
• Transferring to Your Children Over Time
• Transferring to Your Children Through a Bequest
• Selling Your Business to Family
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Succession Planning Alternatives
• Transferring With a Buy-Sell Agreement
• Private Annuities
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Creating Effective Websites
•
•
•
•
Determine Objectives, Messages
Communicate Effectively
Make it Easy to Navigate
Use Graphics Wisely
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants
Creating Effective Websites
• Include Contact Information
• Develop Privacy, Security Policies
• Give Visitors a Reason to Return
Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants