Category Archives: Blog

  • IRS Slapshot Misses

    Summer is here, so naturally, everyone’s thinking about hockey. The Pittsburgh Penguins have just taken their second Stanley Cup in a row, and the rest of the NHL is working to make sure there’s no three-peat. But one of those teams just won a different sort of contest, in Tax Court of all places. So let’s go to the tape . . . Jeremy Jacobs is the owner and chairman of Delaware North, a concession company operating at places like stadiums, racetracks, and national parks. (Sounds like he’s as much to blame as anyone for the $14 beers you bought at your last ballgame.) He also owns the Boston Bruins, which finished 2017 with a 44-31-7 record in the league’s Eastern Conference. Forbes magazine pegs his net worth at just $4.4 billion, which means he’s barely a billionaire and still has to watch his pennies. The Bruins play half their games on the road. Those road trips can get expensive, especially when it comes to feeding everyone: “between 20 and 24 players, the head coach, assistant coaches, medical personnel, athletic trainers, equipment managers, communications personnel, travel logistics managers, public relations/media personnel, and other employees.” The team actually requires everyone to…

    Read More...
  • Should I Get a Big Tax Refund?

    It’s that time of year when people are working on their tax returns.  While it may be a lot of unwanted work to file the tax return, a lot of people get excited about filing their tax return because it means they get a big tax refund. My question for you is, “Should you get a big tax refund?”  If you do like getting a big tax refund, then it means you had too much taxes withheld from your paycheck throughout the year.  Not only that but you gave the government an interest free loan throughout the year. Here’s a simple example.  Let’s say that you get a $6,000 refund.  That’s a lot of money.  Now you can go on a vacation, pay off some debt, or buy something nice for your self.  If you get a $6,000 refund, that means that throughout the year you had $500 a month that was over-withheld from your paycheck each month. Let’s say you’re car needs to be replaced.  you can get a nice car for $500 a month.  Or let’s say your house is getting a bit small.  Just think if you added that $500 a month to your existing house payment. …

    Read More...
  • There’s Only One Way to Save Money

    Have you every looked at your bank account and said, “Boy, I wish I had more money?”  I know I have. I often tell my clients that there is only one way to save money.  Save Money.  It may sound a bit simplistic, but the only way to save money is to not spend it. I’m going to give you a sure fire way to save money.  I’ve been doing this for a number of years now and it works wonderfully.  I came up with this idea by reading the best book on financial management The Richest Man in Babylon.  In that book it says to save 10% of everything you earn. Here is how I implemented this idea.  Whenever I make a deposit into the bank account I transfer 10% over to my savings account.  It works beautifully.  Over time, my business has grown and the volume of customer deposits I’ve received has increased.  I found that it became cumbersome to do a 10% savings transfer for every customer deposit I receive.  So I decided to change my discipline.  Now instead of doing a savings transfer with each customer deposit, at the end of the month I look at…

    Read More...
  • Introduction to the Balance Sheet

    The balance sheet provides us with a financial snapshot of our business for a certain point in time.  It tells us what our assets are, what our liabilities are, and what our equity (net worth of company) is.  The balance sheet is only valid for one point in time.  For example if the balance sheet is date September 30, 2012, the balance sheet would only be valid for September 30.  It would not be valid for September 29 or October 1.  It is only valid for September 30. Why is it called a Balance Sheet.  Because it balances.  If it didn’t balance, it would not be called a Balance Sheet. One of the fundamentals of accounting is the Accounting Equation: Assets = Liabilities and Equity. When we look at a Balance Sheet, the assets will always equal the liabilities and equity section. The balance sheet has two major sections the Assets section and the Liabilities and Equity Section. In the Assets section, you have three main categories:  Current Assets, Fixed Assets, and Other Assets.  Current assets are assets that a company will convert to cash or use in operations within one year.  Examples of this are cash, marketable securities, and…

    Read More...
  • Take A Real Business Trip

    I just finished up having my first Chariots of Fire moment.  I love to run.  I’ve finished 7 marathons.  Chariots of Fire is one of my favorite movies.   I just recreated the opening scene where they are all running on the beach and the waves are lapping on their feet. Best part of this was I did it on the beautiful Seven Mile Beach in Grand Cayman.  It was an exhilarating experience. I just finished up the Cayman Business Academy with Chuck Bauer.  The best part of the whole experience was that it was at a business conference and thus a business expense. I love attending business conference.  I get to learn information that helps me transform my business.  I still remember The third business conference that I attended cost me $2,000 to attend including travel. As a result attending that conference I got an idea that I immediately implemented.  Within in 4 months I had made $3,000 from just one of the ideas I learned.  That is what we call a positive return on investment.  I’d like to see someone do that on Wall Street.  Best part is I am still making money from that one idea.  I have…

    Read More...
  • Why is My Business not Growing?

    Why is my business not growing? The simple answer, the only answer is because you don’t want it to grow. One of the most gratifying things I see in my line is work is a business owner who starts their business from scratch and grows the business to earn finances to achieve their goals and dreams.  It is one on the most beautiful things about America that we have the opportunity to build a life that we want. One of my first clients started her business in January and by December they had revenues of ~$950,000.  She built a million dollar business in the space of a year.  What makes this even more remarkable is that she accomplished this in 2008 at the beginning of the Great Recession. It was truly inspiring to see and has inspired me ever since. What the difference between a business with exceptional growth and a business that just peters along. The difference is the business owner that grows is focused on growth.  Growth is the number on priority.  They make sure that they are doing the activities that generate growth.  They are hustling daily to present their product and services to their ideal customer….

    Read More...
  • Introduction to Financial Statements

    You got into business for a lot of reasons.  One of the primary reason most people are in business is to make money.  One of the most important tools you have to understand how your business is doing is an accurate set of financial statements. With a good set of financial statements you will be able to uncover a lot of valuable information on the health of your business.  You will discover what you are doing well and what you need to improve.  I frequently tell people that you have to manage your business by the numbers.  This enables you look at objective data and make decisions based on facts.  People lie, but numbers do not. For a number of people the financial statements can be daunting.  They don’t understand what they are looking at.  This can easily solved with some education. The basic set of financial statements that you want to review on a monthly basis are the balance sheet, income statement and statement of cash flows. The balance sheet will tell you what your company is worth.  It tells you what you own, what you owe and what you’re worth.  All three items are very important. The income…

    Read More...
  • 16 Tax Issues Facing Small Business Owners in 2014

    2014 will be a challenging tax year for businesses and higher-income taxpayers. The following issues are concerns that may impact you and your company’s tax liability in the new year. Small Business Health Insurance Credit – The tax credit to small employers (25 or fewer equivalent full-time employees) that provide an affordable health insurance plan for their employees and supplement at least half the premiums, will increase to 50% of the employer’s contribution in 2014, up from 35% in 2013. For non-profit employers, the credit will be 35% in 2014. Net Investment Income Tax – As part of the Patient Protection & Affordable Care Act (the new health care legislation sometimes referred to as “Obamacare”), a new tax kicked in for 2013 and will continue in 2014 and beyond. It is a surtax levied on the net investment income of taxpayers in the higher-income brackets. And although it is perceived as an additional tax on higher-income taxpayers, it can affect even those who normally don’t have higher income if they have a large income from the sale of real estate, certain business assets, stocks, or other investments. This is on top of the 20% long-term capital gain tax rate now…

    Read More...
  • New IRS Vehicle Mileage Rates for 2014

    This year the standard mileage rate has been reduced by half a cent from 2013.   Beginning January 1, 2014 the new standard mileage rate for business driving is 56 ¢ per mile. The rate for medical travel and moving also declined to 23.5 ¢ per mile. The rate for charitable driving remains unchanged at 14 ¢ a mile. If you are using the standard mileage rate you can also deduct the cost for parking and tolls.

    Read More...
  • Basics of Preventing Employee Fraud

    As a company grows, the business owner typically will delegate duties to staff.  When delegating duties it is important to realize that how those duties are delegated could result in employee fraud and theft of company assets. It’s important to understand fraud and what contributes to fraud.  There are three main things to consider when thinking about fraud: Rationalization – Justification for Dishonest Actions Opportunity – Ability to Carry Out Misappropriation of Company Assets Pressure – Motivation or Incentive to Commit Fraud The first two items can typically not be controlled by the business owner.  You have no control over whether someone else will rationalize doing something dishonest.  You also have no control over whether someone is feeling pressure or wants to commit fraud. You do however have the ability to control the opportunity.  In order to reduce the risk that someone will have the opportunity to steal from you, you must have strong internal controls over your assets and the use of your assets. In developing your internal controls, it’s important to remember that the ARC will protect you from employee theft. What is the ARC? The ARC stands for Authorization Recordkeeping Custody Each of these functions is incompatible…

    Read More...

Testimonials

  • We started our residential real estate business and brought Damon on as our principal adviser for all matters relating to taxes & accounting. We have doubled our business each year and Damon is a critical partner that has allowed us to successfully focus on our business.

    – Dan and Rachel Kendall
    Owners, The Rachel Kendall Team, LLC - Raleigh, NC
  • Damon Yudichak is a diligent and consistent professional. I’ve worked with Damon since 2009 and I’ve felt like a valued customer since the beginning of our relationship. His firm is consistent, courteous, and knowledgeable. He and his firm are a vital link to my business.

    – Al Sullivan, President
    Inspirus Consulting, Inc. – Cary, NC
  • Owning a small business… to me, it’s worth millions! Bringing Damon on for accounting and tax purposes… just a reasonable monthly fee! Keeping our business legal and my business partner sane… PRICELESS!

    – Tonya Baskerville, Owner
    Art on the Fridge, LLC – Raleigh, NC

Weekly Tax Tips

Damon’s Books: