Tuesday, January 25, 2011
Monday, January 17, 2011
Wednesday, January 12, 2011
Tuesday, January 4, 2011
Making Decisions About Benefits?
Simons Bitzer & Associates is pleased to be hosting an informative presentation by Charo Boyd, Public Affairs Specialist for the Social Security Administration.
Date: January 13th, 2011
Time: 1:00-2:00
Location: 8350 South Emerson Avenue, Suite 100
There is no fee to attend and refreshments will be served.
During this workshop, Ms. Boyd will address the following topics:
Choices regarding when to begin receiving benefits
Spousal/Survivor benefits
Eligibility rules regarding Full Retirement Benefits
Charo N. Boyd is responsible for informing the public about SSA programs and benefits. She is often the guest speaker for retirement and disability seminars. She has also trained HR Managers, Financial Planners, Tax Preparers, Social Workers, Case Managers, Disability Advocates, and Attorneys on various SSA topics.
We are so pleased to have her presenting at our firm next Thursday. If you or someone you know would like to attend, please respond to Raegan Potter at (317) 782-3070 or rpotter@simonsbitzer.com.
Date: January 13th, 2011
Time: 1:00-2:00
Location: 8350 South Emerson Avenue, Suite 100
There is no fee to attend and refreshments will be served.
During this workshop, Ms. Boyd will address the following topics:
Choices regarding when to begin receiving benefits
Spousal/Survivor benefits
Eligibility rules regarding Full Retirement Benefits
Charo N. Boyd is responsible for informing the public about SSA programs and benefits. She is often the guest speaker for retirement and disability seminars. She has also trained HR Managers, Financial Planners, Tax Preparers, Social Workers, Case Managers, Disability Advocates, and Attorneys on various SSA topics.
We are so pleased to have her presenting at our firm next Thursday. If you or someone you know would like to attend, please respond to Raegan Potter at (317) 782-3070 or rpotter@simonsbitzer.com.
Monday, January 3, 2011
FUTA and SUTA Increases
The IRS announced a reduction in the 2010 FUTA (Federal Unemployment Tax Act) credit for three states: Michigan, South Carolina, and Indiana. This is a result of unpaid federal loans by these states. The Social Security Act requires a reduction in the FUTA tax credit when a state has outstanding federal loans for two consecutive Januaries. This reduction means an overall increase in the FUTA taxes for these states.
Employers are required to pay a flat rate of 6.2% on the first $7,000 of each employee's annual wages. Employers can receive a credit of 5.4% for paying state unemployment on time. The reduction in the FUTA tax credit is .3% for the first year and an additional .3% for each succeeding year until the loan is repaid.
Indiana: An additional $21 per employee ($7,000 x .3% = $21) the first year.
The FUTA credit reduction will become elective retroactive to January 1, 2010 and will be due on federal IRS Form 940 by January 31, 2011.
Also note that the SUTA tax is based on the first $9,500 in wages beginning January 1, 2011.
With questions or for additional information, please contact a tax specialist from Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com.
Employers are required to pay a flat rate of 6.2% on the first $7,000 of each employee's annual wages. Employers can receive a credit of 5.4% for paying state unemployment on time. The reduction in the FUTA tax credit is .3% for the first year and an additional .3% for each succeeding year until the loan is repaid.
Indiana: An additional $21 per employee ($7,000 x .3% = $21) the first year.
The FUTA credit reduction will become elective retroactive to January 1, 2010 and will be due on federal IRS Form 940 by January 31, 2011.
Also note that the SUTA tax is based on the first $9,500 in wages beginning January 1, 2011.
With questions or for additional information, please contact a tax specialist from Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com.
Thursday, December 23, 2010
What Do The New Tax Laws Mean For You?
Congress has approved, and President Obama has signed into law, a multi-billion dollar tax cut package, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) (H.R. 4853). The new law follows through on the framework agreed to December 6 by President Obama and GOP leaders in Congress.
For most individuals, the most immediate impact of the new law will be the payroll tax cut and the extension of the reduced individual income tax rates. Below are some highlights:
• The 2010 Tax Relief Act reduces the employee-share of the OASDI portion of Social Security taxes from 6.2% to 4.2% for wages earned in calendar year 2011 up to the taxable wage base of $106,800. Self-employed individuals would pay 10.4% on self-employment income up to the threshold.
• Current income tax rates will remain in place for two years (2011 and 2012) with a top rate of 35% on ordinary income and 15% on qualified dividends and long-term capital gains.
• The 2010 Tax Relief Act boosts 50% bonus depreciation to 100 percent for qualified investments made after September 8, 2010 and before January 1, 2012. Unlike Code Section 179 expensing, it is not limited to use by smaller businesses or capped at a certain dollar level. It also makes 50% bonus depreciation available for qualified property placed in service after December 31, 2011 and before January 1, 2013.
• The 2010 Tax Relief Act extends the Bush-era individual and capital gains/dividend tax cuts for all taxpayers for two years.
• The bill provides an Alternative Minimum Tax “patch” intended to prevent the AMT from encroaching on middle income taxpayers by providing higher exemption amounts and other targeted relief for 2010 and 2011. Without this patch, an estimated 21 million additional households would be subject to the AMT.
• The bill offers an extension of the $1,000 child tax credit for two years, through December 21, 2012. The qualifying child must be under age 17 at the close of the year and satisfy relationship, residency, support, citizenship and dependent tests. It continues to be phased out for taxpayers with adjusted gross income in excess of $110,000 for joint filers.
• The bill extends a number of individual credits including adoption, dependent care, education and qualified energy efficiency improvement credits.
• The bill also extends a number of deductions for individuals including state and local sales tax, higher education tuition, teachers’ classroom expense and specific charitable donations.
• The Act extends a number of business tax extenders generally for two years. These business tax extenders had expired at the end of 2009.
The new law gives taxpayers some certainty in tax planning for the next two years, especially concerning the individual income tax rates, capital gains/dividend tax rates and the estate tax; however, these provisions are temporary.
With questions or to schedule a consultation with one of our tax specialists to discuss how the new law may impact you specifically, please contact Simons Bitzer at (317) 782-3070.
For most individuals, the most immediate impact of the new law will be the payroll tax cut and the extension of the reduced individual income tax rates. Below are some highlights:
• The 2010 Tax Relief Act reduces the employee-share of the OASDI portion of Social Security taxes from 6.2% to 4.2% for wages earned in calendar year 2011 up to the taxable wage base of $106,800. Self-employed individuals would pay 10.4% on self-employment income up to the threshold.
• Current income tax rates will remain in place for two years (2011 and 2012) with a top rate of 35% on ordinary income and 15% on qualified dividends and long-term capital gains.
• The 2010 Tax Relief Act boosts 50% bonus depreciation to 100 percent for qualified investments made after September 8, 2010 and before January 1, 2012. Unlike Code Section 179 expensing, it is not limited to use by smaller businesses or capped at a certain dollar level. It also makes 50% bonus depreciation available for qualified property placed in service after December 31, 2011 and before January 1, 2013.
• The 2010 Tax Relief Act extends the Bush-era individual and capital gains/dividend tax cuts for all taxpayers for two years.
• The bill provides an Alternative Minimum Tax “patch” intended to prevent the AMT from encroaching on middle income taxpayers by providing higher exemption amounts and other targeted relief for 2010 and 2011. Without this patch, an estimated 21 million additional households would be subject to the AMT.
• The bill offers an extension of the $1,000 child tax credit for two years, through December 21, 2012. The qualifying child must be under age 17 at the close of the year and satisfy relationship, residency, support, citizenship and dependent tests. It continues to be phased out for taxpayers with adjusted gross income in excess of $110,000 for joint filers.
• The bill extends a number of individual credits including adoption, dependent care, education and qualified energy efficiency improvement credits.
• The bill also extends a number of deductions for individuals including state and local sales tax, higher education tuition, teachers’ classroom expense and specific charitable donations.
• The Act extends a number of business tax extenders generally for two years. These business tax extenders had expired at the end of 2009.
The new law gives taxpayers some certainty in tax planning for the next two years, especially concerning the individual income tax rates, capital gains/dividend tax rates and the estate tax; however, these provisions are temporary.
With questions or to schedule a consultation with one of our tax specialists to discuss how the new law may impact you specifically, please contact Simons Bitzer at (317) 782-3070.
Thursday, December 9, 2010
2010 Year-End Tax Planning for Business Owners
As another year winds down and the holidays approach, it is time to consider all the latest tax law changes and plan accordingly to minimize any tax liability. While congress continues to work on last minute changes to the tax laws, rest assured that we will be staying abreast of these changes for you. Although we've blogged about these new laws throughout the year, we thought it would be beneficial to highlight some particular areas so that you can begin your year-end planning.
Health Insurance Credit for Small Employers—If your business has less than 25 employees and pays less than $50,000 in average wages, you may be able to take this credit. There are many restrictions that will exclude many businesses from taking this credit, but it may be worth looking into.
HIRE Act—If your business hired any previously unemployed employees on or after February 4, 2010, you may not need to pay the employers’ portion of the Social Security tax. This relief could be as high as $6,622 per employee hired. This relief provision is available only in 2010.
Extension of Section 179 Depreciation—The Small Business Jobs Act of 2010 also extended and increased the amount of Section 179 depreciation that a small business is allowed to expense on its fixed asset purchases. You may want to consider the purchase of fixed assets that you need in your business.
In addition to the new laws above, the following are areas that the IRS has been scrutinizing more closely. Please pay particular attention to these areas.
Health Insurance Premiums for S Corporation Owners—It is critical to properly report the premiums on your W-2 so it is deductible for the S Corporation as compensation and allows the S Corporation owners to deduct this on their personal tax return. If your business is an S corp and it paid your health insurance premiums, we will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Personal Auto Usage on W-2—If your business owns an auto that the owner is using, it is very important that the personal usage portion is calculated and added to your W-2. We will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Detailed Inventory Records—If your business has inventory, the IRS is continuing to place an increased emphasis on actual physical inventory on hand at the end of the year. Therefore, be sure to physically count your inventory, retain the records, and provide us with the accurate total cost of inventory on hand December 31, 2010. Do not include consignments you are holding from other people in this number. In the event of an audit you must be able to provide copies of physical count sheets; therefore, we are placing an increased emphasis upon obtaining correct year end physical inventory amounts.
Corporate Minutes—We would also like to remind you that your corporate minutes must be maintained on an annual basis. These minutes are maintained by the officers of the corporation. Please keep in mind that only S and C corporations are required to maintain minutes.
If you have questions or would like to schedule a consultation with one of our tax experts, please call Simons Bitzer at (317) 782-3070.
Health Insurance Credit for Small Employers—If your business has less than 25 employees and pays less than $50,000 in average wages, you may be able to take this credit. There are many restrictions that will exclude many businesses from taking this credit, but it may be worth looking into.
HIRE Act—If your business hired any previously unemployed employees on or after February 4, 2010, you may not need to pay the employers’ portion of the Social Security tax. This relief could be as high as $6,622 per employee hired. This relief provision is available only in 2010.
Extension of Section 179 Depreciation—The Small Business Jobs Act of 2010 also extended and increased the amount of Section 179 depreciation that a small business is allowed to expense on its fixed asset purchases. You may want to consider the purchase of fixed assets that you need in your business.
In addition to the new laws above, the following are areas that the IRS has been scrutinizing more closely. Please pay particular attention to these areas.
Health Insurance Premiums for S Corporation Owners—It is critical to properly report the premiums on your W-2 so it is deductible for the S Corporation as compensation and allows the S Corporation owners to deduct this on their personal tax return. If your business is an S corp and it paid your health insurance premiums, we will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Personal Auto Usage on W-2—If your business owns an auto that the owner is using, it is very important that the personal usage portion is calculated and added to your W-2. We will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Detailed Inventory Records—If your business has inventory, the IRS is continuing to place an increased emphasis on actual physical inventory on hand at the end of the year. Therefore, be sure to physically count your inventory, retain the records, and provide us with the accurate total cost of inventory on hand December 31, 2010. Do not include consignments you are holding from other people in this number. In the event of an audit you must be able to provide copies of physical count sheets; therefore, we are placing an increased emphasis upon obtaining correct year end physical inventory amounts.
Corporate Minutes—We would also like to remind you that your corporate minutes must be maintained on an annual basis. These minutes are maintained by the officers of the corporation. Please keep in mind that only S and C corporations are required to maintain minutes.
If you have questions or would like to schedule a consultation with one of our tax experts, please call Simons Bitzer at (317) 782-3070.
Wednesday, November 17, 2010
Recharacterize: Should you do it?
Congress has expanded conversion and rollover options for IRAs. Beginning January 1, 2010, taxpayers with adjusted gross income in excess of $100,000 can convert a traditional IRA to a Roth IRA. A Roth Ira has substantial benefits: Income from a Roth IRA is tax exempt and there are no minimum distributions at age 70 1/2. The conversion can be accomplished through a trustee-to-trustee transfer, a rollover or account redesignation.
The converted amount less any after-tax contributions must be included in gross income. If the rollover is accomplished in 2010, the income is reported on the individual’s tax return in equal installments over 2011 and 2012. Taxpayers can elect to include the entire amount in income in 2010. Given the projected increase in tax rates, taxpayers may want to consider including the entire amount in income in 2010.
Taxpayers have until October 17, 2011 to recharacterize a 2010 rollover or conversion to a Roth IRA. Recharacterizing an IRA contribution involves transferring amounts previously converted to a Roth or traditional IRA to an IRA of the opposite type. Therefore, a taxpayer is not committed to a decision to reconvert to a Roth IRA. A taxpayer may recharacterize conversions that decrease in value.
With questions or for more information, please contact a Simons Bitzer Tax Specialist at (317) 782-3070. Visit www.SimonsBitzer.com.
The converted amount less any after-tax contributions must be included in gross income. If the rollover is accomplished in 2010, the income is reported on the individual’s tax return in equal installments over 2011 and 2012. Taxpayers can elect to include the entire amount in income in 2010. Given the projected increase in tax rates, taxpayers may want to consider including the entire amount in income in 2010.
Taxpayers have until October 17, 2011 to recharacterize a 2010 rollover or conversion to a Roth IRA. Recharacterizing an IRA contribution involves transferring amounts previously converted to a Roth or traditional IRA to an IRA of the opposite type. Therefore, a taxpayer is not committed to a decision to reconvert to a Roth IRA. A taxpayer may recharacterize conversions that decrease in value.
With questions or for more information, please contact a Simons Bitzer Tax Specialist at (317) 782-3070. Visit www.SimonsBitzer.com.
Thursday, November 11, 2010
2010 Year End Tax Planning for Individuals
Year-end tax planning for 2010 presents new challenges for individual taxpayers like you to reduce or defer your federal income tax liability. Although it is generally beneficial to defer income and accelerate expenses, with tax reform on the horizon, the focus shifts to balancing overall tax rates in 2010 and beyond. As you know, the Obama administration has proposed an increase in the income and capital gains tax rates for 2011. Additionally, over $1 trillion in tax cuts enacted in 2001 (EGTRRA) and 2003 (JGTRRA) are scheduled to sunset after December 31, 2010. Unless Congress acts to extend or modify these provisions, the impacted rates, deductions, and credits will revert to pre-2001 levels in 2011.
The rate increases proposed by the current administration would affect single individuals with income exceeding $200,000, and married couples with incomes greater than $250,000. If you fall within these parameters, the traditional year-end planning strategy of deferring income into next year may not be effective in 2010. Higher income taxpayers are more likely to benefit by accelerating 2011 income into 2010 and deferring losses to 2011 and later years to escape higher rates. If you think you will be in a higher tax bracket in 2011, you may want to:
• Accelerate income, including bonuses if possible, into 2010
• Defer selling capital assets at a loss until 2011 and later years
• Move some assets into tax-free instruments, like municipal bonds, that are not subject to federal tax
• Take capital gains in 2010 while the top rate is still 15 percent
• Accelerate billings and/or provide incentives for clients or customers to make payments in 2010 (for self-employed cash-basis taxpayers)
• Take taxable retirement plan distributions before 2011 (for taxpayers over age 59-1/2)
• Bunch itemized or business deductions into the 2011 tax year
• Consider paying all of the tax owed on a Roth IRA conversion in the 2010 tax year
However, if you anticipate being in a lower tax bracket in 2011 as compared to 2010, you may want to take advantage of the complete elimination of phase-outs for personal exemptions and itemized deductions that is available for the 2010 tax year only. If you have been affected by these limitations in the past, you may be able to take advantage of this opportunity, but you should carefully review all of your options beforehand.
For more information regarding year end tax planning, please contact Simons Bitzer & Associates at (317) 782-3070.
The rate increases proposed by the current administration would affect single individuals with income exceeding $200,000, and married couples with incomes greater than $250,000. If you fall within these parameters, the traditional year-end planning strategy of deferring income into next year may not be effective in 2010. Higher income taxpayers are more likely to benefit by accelerating 2011 income into 2010 and deferring losses to 2011 and later years to escape higher rates. If you think you will be in a higher tax bracket in 2011, you may want to:
• Accelerate income, including bonuses if possible, into 2010
• Defer selling capital assets at a loss until 2011 and later years
• Move some assets into tax-free instruments, like municipal bonds, that are not subject to federal tax
• Take capital gains in 2010 while the top rate is still 15 percent
• Accelerate billings and/or provide incentives for clients or customers to make payments in 2010 (for self-employed cash-basis taxpayers)
• Take taxable retirement plan distributions before 2011 (for taxpayers over age 59-1/2)
• Bunch itemized or business deductions into the 2011 tax year
• Consider paying all of the tax owed on a Roth IRA conversion in the 2010 tax year
However, if you anticipate being in a lower tax bracket in 2011 as compared to 2010, you may want to take advantage of the complete elimination of phase-outs for personal exemptions and itemized deductions that is available for the 2010 tax year only. If you have been affected by these limitations in the past, you may be able to take advantage of this opportunity, but you should carefully review all of your options beforehand.
For more information regarding year end tax planning, please contact Simons Bitzer & Associates at (317) 782-3070.
Friday, October 1, 2010
Small Business Jobs Act of 2010-What does it mean for you?
Congress has passed a small business jobs bill (the Small Business Jobs Act of 2010) with valuable individual and business tax incentives. Many of the $12 billion tax incentives are temporary so taxpayers
have only a short window in which to take advantage of them. Others are permanent but require careful
planning to maximize your tax benefits. Below we highlight some of the tax incentives and revenue raisers in the new law.
Although the new law is labeled a "small business bill" it actually is much more. The new law includes a
number of provisions targeted to small businesses and investors in small businesses, such as 100 percent exclusion of gain on qualified small business stock, an increase in the amount allowed as a deduction for start-up expenditures, and more. Other provisions may benefit businesses of all sizes, such as extended bonus depreciation and extended and doubled Code Sec. 179 expensing. Many individuals will benefit from a new rule allowing rollovers from elective deferral plans to Roth designated accounts, along with other retirement savings incentives. Self-employed individuals benefit from a temporary deduction for health insurance costs in computing self-employment income.
To ensure passage of the bill, supporters had to find revenue raisers to pay for the tax incentives. The
largest revenue raiser designed to force greater disclosure of taxable income is a new information reporting requirement for rental property expenses, which is projected to raise $2.5 billion over 10 years. The new law also increases information return penalties. An additional revenue provision places curbs on the cellulosic biofuel producer credit, and another shifts corporate estimated taxes in 2015.
The new law is much more than a small business bill, although many small businesses and their owners will benefit greatly from its provisions. Many provisions within the new law are broad-based and far-reaching. Moreover, many of the tax incentives are temporary, requiring prompt
action to take full advantage of them.
Please contact Simons Bitzer & Associates for additional information. We can help you design a tax strategy to maximize your benefits from the new law. Visit www.SimonsBitzer.com to read a more detailed explanation of these changes.
have only a short window in which to take advantage of them. Others are permanent but require careful
planning to maximize your tax benefits. Below we highlight some of the tax incentives and revenue raisers in the new law.
Although the new law is labeled a "small business bill" it actually is much more. The new law includes a
number of provisions targeted to small businesses and investors in small businesses, such as 100 percent exclusion of gain on qualified small business stock, an increase in the amount allowed as a deduction for start-up expenditures, and more. Other provisions may benefit businesses of all sizes, such as extended bonus depreciation and extended and doubled Code Sec. 179 expensing. Many individuals will benefit from a new rule allowing rollovers from elective deferral plans to Roth designated accounts, along with other retirement savings incentives. Self-employed individuals benefit from a temporary deduction for health insurance costs in computing self-employment income.
To ensure passage of the bill, supporters had to find revenue raisers to pay for the tax incentives. The
largest revenue raiser designed to force greater disclosure of taxable income is a new information reporting requirement for rental property expenses, which is projected to raise $2.5 billion over 10 years. The new law also increases information return penalties. An additional revenue provision places curbs on the cellulosic biofuel producer credit, and another shifts corporate estimated taxes in 2015.
The new law is much more than a small business bill, although many small businesses and their owners will benefit greatly from its provisions. Many provisions within the new law are broad-based and far-reaching. Moreover, many of the tax incentives are temporary, requiring prompt
action to take full advantage of them.
Please contact Simons Bitzer & Associates for additional information. We can help you design a tax strategy to maximize your benefits from the new law. Visit www.SimonsBitzer.com to read a more detailed explanation of these changes.
Monday, September 27, 2010
Dayspring Homecoming Celebration...'80's style!
Even during challenging economic times, it is hard to believe that on any given night over 1,500 children are homeless in our city. Homelessness hurts, especially the children.
But, there is a place of hope. Dayspring Center provides emergency shelter, clothing, and three nourishing meals-a-day for homeless families with children in central Indiana. Families turn to Dayspring Center as a last resort; some to escape domestic abuse, others have experienced financial collapse, medical problems, or other crises that caused them to lose their home. Dayspring Center is a place where parents and their children get the help they need for a better life, a new beginning. Since our doors opened 23 years ago, Dayspring Center has been a place of comfort for over 11,000 homeless children and their parents.
The team at Simons Bitzer is pleased to be associated with this wonderful organization, both professionally and personally. This October we will be running the Silent Auction check-out during the center's important fall fundraiser: Dayspring Homecoming Celebration 2010...80's style!.
Click here to watch a video about this wonderful organization. To learn more about the celebration, contact Raegan Potter at rpotter@simonsbitzer.com.
But, there is a place of hope. Dayspring Center provides emergency shelter, clothing, and three nourishing meals-a-day for homeless families with children in central Indiana. Families turn to Dayspring Center as a last resort; some to escape domestic abuse, others have experienced financial collapse, medical problems, or other crises that caused them to lose their home. Dayspring Center is a place where parents and their children get the help they need for a better life, a new beginning. Since our doors opened 23 years ago, Dayspring Center has been a place of comfort for over 11,000 homeless children and their parents.
The team at Simons Bitzer is pleased to be associated with this wonderful organization, both professionally and personally. This October we will be running the Silent Auction check-out during the center's important fall fundraiser: Dayspring Homecoming Celebration 2010...80's style!.
Click here to watch a video about this wonderful organization. To learn more about the celebration, contact Raegan Potter at rpotter@simonsbitzer.com.
Monday, September 13, 2010
Celebrating 15 Years of Assisting Customers
Simons Bitzer & Associates, a local public accounting firm, was pleased to celebrate their 15 year anniversary by hosting a ribbon cutting conducted by the Greater Greenwood Chamber of Commerce. The celebration was held at their office on September 10th from 11:30-1:00 with the actual ribbon cutting commencing at 12:00 p.m. Tony Nguyen, founder of the Indiana Asian Chamber of Commerce, posted video from the event on YouTube. Click here to watch: http://www.youtube.com/iacc2020.
Marking this momentous occasion in the firms’ history, Simons Bitzer & Associates has established a scholarship fund at the IU Kelley School of Business Indianapolis.
“Your generous commitment is essential to the success of Indiana University,” said President Eugene R. Tempel. “Because of the dedicated support of thoughtful donors like you, the university is positioned to offer new technologies, maintain cutting edge research facilities, and attract world renowned faculty.”
Since 1995, the team at Simons Bitzer & Associates has focused on providing accounting services to small and medium-sized businesses in Central Indiana. The firm has been recognized for our honest and direct approach as we realize the importance of our role in our customers’ businesses and financial plans. We strive to serve the needs of each of our customers with the utmost professionalism and forthright communication, building relationships not just associations. Our customers appreciate our team’s approach and willingness to roll up their sleeves, working beside them on every level of project development and execution.
“I started my own firm 15 years ago with the goal of assisting business owners improve their performance, drive shareholder value and create a competitive advantage. Barb (Bitzer) and I, along with our team, are dedicated to helping our customers meet their dreams and goals by improving efficiencies and maximizing their profitability,” said Greg Simons, principal and founder.
Marking this momentous occasion in the firms’ history, Simons Bitzer & Associates has established a scholarship fund at the IU Kelley School of Business Indianapolis.
“Your generous commitment is essential to the success of Indiana University,” said President Eugene R. Tempel. “Because of the dedicated support of thoughtful donors like you, the university is positioned to offer new technologies, maintain cutting edge research facilities, and attract world renowned faculty.”
Since 1995, the team at Simons Bitzer & Associates has focused on providing accounting services to small and medium-sized businesses in Central Indiana. The firm has been recognized for our honest and direct approach as we realize the importance of our role in our customers’ businesses and financial plans. We strive to serve the needs of each of our customers with the utmost professionalism and forthright communication, building relationships not just associations. Our customers appreciate our team’s approach and willingness to roll up their sleeves, working beside them on every level of project development and execution.
“I started my own firm 15 years ago with the goal of assisting business owners improve their performance, drive shareholder value and create a competitive advantage. Barb (Bitzer) and I, along with our team, are dedicated to helping our customers meet their dreams and goals by improving efficiencies and maximizing their profitability,” said Greg Simons, principal and founder.
Monday, August 30, 2010
Monday, August 16, 2010
Promote KPI Data Within The Team
Over the last several weeks, we have been discussing the characteristics that make up a good Key Performance Indicator. Now that we know how to create a KPI, let's discuss collecting the data for and managing your new monitoring system.
It can be very useful in promoting company policy and getting buy-in to make sure team members see some of hte data that is being gathered. This can be done in the form of a scoreboard for example. This chart or handout can show the numbers that drive business profitability-sales, Cost of Good Sold,etc.-and the KPIs for the critical success factors in each area. Some companies even include the team's bonus evaluation forecast based on the up-to-date KPI indicators. This can prove to be a highly motivating measurement tool.
Providing the scores and explaining the situation is one way of keeping them focused on the jobs that really need doing and encouraging them to move the KPI's in the right direction.
Of course you may desire to do some training around this. Some team members may not be familiar with such terms as "operating efficiency", "turnover", or "gross margin" without some type of explanation. After they become familiar with the terms, and have the data made available to them, you can ask them to discuss ideas on improving the situation.
For more information about knowing what to do with the KPIs once developed, please contact a Simons Bitzer team member at (317) 782-3070.
It can be very useful in promoting company policy and getting buy-in to make sure team members see some of hte data that is being gathered. This can be done in the form of a scoreboard for example. This chart or handout can show the numbers that drive business profitability-sales, Cost of Good Sold,etc.-and the KPIs for the critical success factors in each area. Some companies even include the team's bonus evaluation forecast based on the up-to-date KPI indicators. This can prove to be a highly motivating measurement tool.
Providing the scores and explaining the situation is one way of keeping them focused on the jobs that really need doing and encouraging them to move the KPI's in the right direction.
Of course you may desire to do some training around this. Some team members may not be familiar with such terms as "operating efficiency", "turnover", or "gross margin" without some type of explanation. After they become familiar with the terms, and have the data made available to them, you can ask them to discuss ideas on improving the situation.
For more information about knowing what to do with the KPIs once developed, please contact a Simons Bitzer team member at (317) 782-3070.
Monday, August 9, 2010
KPIs Should Allow for Correction
We have been discussing the traits that make up a good set of Key Performance Indicators. Today, we'll round out the conversation with the fourth and final characteristic of a good KPI. It should point to the activities you might need to alter if things in your business start to veer off track. To recap, KPIs are the measures of the processes and financial markers that are critical to the success of your business. You know you are on track to achieving your objectives when they are moving in the right direction. You also know that you have an issue to address when they move in the wrong direction.
Your KPIs ought to point to just what is contributing to the problem so you can make changes in a timely manner. For example, you may decide you have a problem with cash flow, but is it die to slow paying customers, poor internal cash management processes, not enough sales, or some combination of those? To determine this, you will actually need to drill down just a bit further by creating a system of sub-system KPIs. When it comes to targeting areas needing correction, it is necessary to take this more granular approach to track in detail what is going on in individual areas.
For more information about establishing and monitoring a set of Key Performance Indicators for your business, please contact a Simons Bitzer team member at (317) 782-3070.
Your KPIs ought to point to just what is contributing to the problem so you can make changes in a timely manner. For example, you may decide you have a problem with cash flow, but is it die to slow paying customers, poor internal cash management processes, not enough sales, or some combination of those? To determine this, you will actually need to drill down just a bit further by creating a system of sub-system KPIs. When it comes to targeting areas needing correction, it is necessary to take this more granular approach to track in detail what is going on in individual areas.
For more information about establishing and monitoring a set of Key Performance Indicators for your business, please contact a Simons Bitzer team member at (317) 782-3070.
Monday, July 26, 2010
KPIs Must Be Measurable
We continue to describe in greater detail the characteristics that make a good Key Performance Indicator. To review, a KPI should reflect your business' goals and should be derived from your business' critical success factors. Today let's discuss making your KPI measurable. It may sound simple but there is a bit more to it than meets the eye at first glance.
In fact, you should establish in writing four things about each chosen KPI:
* a name for it
* a definition of what it involves
* the method you will use to measure it
* your goal or target for the KPI
A KPI itself is not about doing anything. It is a measure rather than a desired outcome. What is important is that you decide upon a definite measure and stay with it. Changing what you include in your KPI or the way you measure it will mean that figures cannot be compared from one period to another or to your target. In other words, they will not be useful to you.
Remember, what you can measure you can manage. Next week we'll discuss the final characteristic of a good KPI. In the meantime, please call a Simons Bitzer team member at (317) 782-3070 to discuss establishing a set of measurable KPIs for your own business.
In fact, you should establish in writing four things about each chosen KPI:
* a name for it
* a definition of what it involves
* the method you will use to measure it
* your goal or target for the KPI
A KPI itself is not about doing anything. It is a measure rather than a desired outcome. What is important is that you decide upon a definite measure and stay with it. Changing what you include in your KPI or the way you measure it will mean that figures cannot be compared from one period to another or to your target. In other words, they will not be useful to you.
Remember, what you can measure you can manage. Next week we'll discuss the final characteristic of a good KPI. In the meantime, please call a Simons Bitzer team member at (317) 782-3070 to discuss establishing a set of measurable KPIs for your own business.
Tuesday, July 20, 2010
KPIs Should Derive From Your Critical Success Factors
Let's pick up where we left off last week. Looking again at the mall cafeteria example, customer turnover rate is the critical success factor which needs to be measured because that drives profitablility in this business. To measure turnover rate, the appropriate Key Performance Indicator would be the number of customers per table per opening period.
On the other hand, for the more relaxed dining establishment that we discussed last week, repeat business and customer satisfaction are the critical success factors. A suitable KPI for this business might be the number of customer complaints received during an established time period. It then becomes important to look at trends. Are complaints decreasing by providing excellent customer service?
In each case the KPI derived from a factor that was critical to the success of the business. Of course it would be important for each business to have a clear business plan that dictates their business goals. Without knowing what is really important to your business and where you want it to go, it will be difficult, if not impossible, to establish your success factors. You could end up measuring irrelevant factors, in other words factors that are not truly critical success factors at all.
Stayed tuned next week when we will discuss the third and final characteristic of a KPI: measurability. In the meantime, with questions about establishing and measuring your own set of Key Performance Indicators, please contact a Simons Bitzer Team Member at (317) 782-3070.
On the other hand, for the more relaxed dining establishment that we discussed last week, repeat business and customer satisfaction are the critical success factors. A suitable KPI for this business might be the number of customer complaints received during an established time period. It then becomes important to look at trends. Are complaints decreasing by providing excellent customer service?
In each case the KPI derived from a factor that was critical to the success of the business. Of course it would be important for each business to have a clear business plan that dictates their business goals. Without knowing what is really important to your business and where you want it to go, it will be difficult, if not impossible, to establish your success factors. You could end up measuring irrelevant factors, in other words factors that are not truly critical success factors at all.
Stayed tuned next week when we will discuss the third and final characteristic of a KPI: measurability. In the meantime, with questions about establishing and measuring your own set of Key Performance Indicators, please contact a Simons Bitzer Team Member at (317) 782-3070.
Wednesday, July 14, 2010
Key Performance Indicators Should Reflect Your Business' Goals
Last week we discussed an overview of the characteristics of good Key Performance Indicators. As promised, we will delve into each characteristic a little more thoroughly.
First, your business goals should determine what things you will measure. Here is an example:
A local mall cafe providing lunches to workers in the surrounding office buildings will need to serve its customers promptly and efficiently to meet its overhead as well as make a good profit. They choose not to encourage customers to linger at their establishment. Customer turnover is an important goal in their business plan.
On the other hand, a street front restaurant in the local shopping center may decide that high customer satisfaction will bring in repeat and higher-spending customers it needs. In this instance the goal is to encourage repeat business by eliminating any reason for customers complaints.
In each case the choice of the KPI to monitor will need to reflect the goal of the particular establishment. To determine what that KPI might be, we will need to look at the critical success factors that would drive achievement of that goal.
Come back next week to learn how your KPIs should be derived from your Critical Success Factors. In the meantime, please call a Simons Bitzer team member at (317) 782-3070 to speak to someone personally about establishing and monitoring your own indicators.
First, your business goals should determine what things you will measure. Here is an example:
A local mall cafe providing lunches to workers in the surrounding office buildings will need to serve its customers promptly and efficiently to meet its overhead as well as make a good profit. They choose not to encourage customers to linger at their establishment. Customer turnover is an important goal in their business plan.
On the other hand, a street front restaurant in the local shopping center may decide that high customer satisfaction will bring in repeat and higher-spending customers it needs. In this instance the goal is to encourage repeat business by eliminating any reason for customers complaints.
In each case the choice of the KPI to monitor will need to reflect the goal of the particular establishment. To determine what that KPI might be, we will need to look at the critical success factors that would drive achievement of that goal.
Come back next week to learn how your KPIs should be derived from your Critical Success Factors. In the meantime, please call a Simons Bitzer team member at (317) 782-3070 to speak to someone personally about establishing and monitoring your own indicators.
Tuesday, July 6, 2010
What Makes a Useful KPI For Your Business?
So what would make a useful Key Performance Indicator in your business? Some apply to almost all businesses, such as various financial ratios. But in deciding others that would be useful to your particular business, there are a number of things to consider. To be worhtwhile monitoring, the KPI should have these characteristics:
* Reflect the goals of your business
* Be critical to the success of your business
* Be measurable
* Point to the activities you might need to alter if things start to go off track
Stay tuned to future posts as we will be discussing each characteristic in further detail as well as sharing some examples. For more information about establishing your own Key Performance Indicators, please contact Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com. We're passionate about your success!
* Reflect the goals of your business
* Be critical to the success of your business
* Be measurable
* Point to the activities you might need to alter if things start to go off track
Stay tuned to future posts as we will be discussing each characteristic in further detail as well as sharing some examples. For more information about establishing your own Key Performance Indicators, please contact Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com. We're passionate about your success!
Monday, June 28, 2010
KPIs-Tools for Business Performance Management
Every business, large or small, regardless of industry, depends on getting certain things right on a regular basis. Survival depends on it. These things we like to call the Critical Success Factors.
Critical Success Factors relate to the business porcesses and activities that REALLY drive business results. At the top level, these are:
Processes and activities that are important to acquiring and holding customers
Processes and activities that determine revenue
Processes and activities that impact efficiency and productivity
Processes and activities that determine team morale
To know how well your business is managing these Critical Success Factors, you need a system of measurement. In effect, Key Performance Indicators ARE these measures. It's important to understand how you can develop a set of KPIs that will allow you to monitor your business' performance on these critical processes and activities.
We'll begin a series of postings related to establishing and monitoring Key Performance Indicators in your business. For more information or one-on-one consultation, please call Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com.
Critical Success Factors relate to the business porcesses and activities that REALLY drive business results. At the top level, these are:
Processes and activities that are important to acquiring and holding customers
Processes and activities that determine revenue
Processes and activities that impact efficiency and productivity
Processes and activities that determine team morale
To know how well your business is managing these Critical Success Factors, you need a system of measurement. In effect, Key Performance Indicators ARE these measures. It's important to understand how you can develop a set of KPIs that will allow you to monitor your business' performance on these critical processes and activities.
We'll begin a series of postings related to establishing and monitoring Key Performance Indicators in your business. For more information or one-on-one consultation, please call Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com.
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