Salons & Spas

Where Has All Of Our Money Gone? Do your financial statements show you are making a profit but your bank shows no money in the account?

Lack of cash flow drains both the owner and the entire salon or spa and can be a devastating problem. Our accountants at Kopsa Otte hear this from new salons and spas all the time, but we can help. The first step in solving any cash flow problem is to find the cause or causes, then work out a solution.

Often, the solution requires planning, energy, patience and the willingness to change. Some of the most likely causes of a salon’s cash-flow crunch include: overstocking inventory, gift certificates, improper financing, income taxes, rainy days (walkouts, pregnancies, accidents, unexpected renovations), overestimating paybacks. These are just a few of the cash culprits, all of which require a different solution.

Kopsa Otte has worked with hundreds of salons and spas to assist them all of these types of questions and more. To find out about this niche, click here: Salons & Spas

Agriculture

My Old Tax Plan Isn't Working, Now What?

Many farm families find themselves in situations where the “old” tax plan (deferral) is no longer valid. Consequently, all those years of deferring income and pre-buying inputs may result in a very large tax bill. Usually the advice of a tax specialist is sought to assist in alleviating this problem.

Planning ahead is one way to ensure that you don’t get yourself into a difficult situation. Options and strategies do exist and can result in significant tax deferrals and outright tax savings; however, proactive steps must be taken to ensure the requirements are met. Each farming operation is unique and therefore requires careful consideration when deciding which option or strategy is appropriate. Effective income tax planning on a continuous basis often goes hand in hand with succession planning. Here at Kopsa Otte we pride ourselves on meeting with our clients throughout the year. To find out about this niche, click here: Agriculture

Distributors

How Long Are You Holding On To Inventory?

Controlling inventory has a significant effect on profitability of distributorships.  Too much inventory and you have high carrying costs and an increased chance for obsolescence.  Too little inventory and you have the chance of lost sales and even more importantly disgruntled customers.  We have found that those distributors that control and understand inventory are more profitable. A measure of inventory is a ratio called “Inventory Turns”.  Simply stated, this means how many times does our inventory turnover each year.

Inventory at year end is another question that a lot of distributors have.  For some reason, many think that if their inventory is high they will have to pay more in tax.  That is simply not true. 

Kopsa Otte knows how to spot and calculate your inventory turns. We will assist you in watching your specific trends and help you with these types of problems and more. To find out about this niche, click here: Distributors