What does a CPA firm have in common with Apple and MIT?

Friday, June 22nd, 2012

Steve Jobs convinced Steve Wozniak to help him start Apple Computers in the mid-1970s.  He knew there had to be a better way of doing business in the field of technology.  The success of Apple is built on his vision.

Put People First
Fourteen years earlier in 1962, two other innovative entrepreneurs also set out to change the way of doing business in their industry.  Jim Kaufman and Jay Rossin envisioned a CPA firm that was truly different from the others. They wanted to build a workplace where people wanted to come to work. If employees feel joyful, challenged and fulfilled, they believed, they’ll provide the best possible service for clients.  This vision led to profits and growth for the business, now in its 50^th year.

Share the Vision
To realize his goal, Jobs assembled people who shared his vision and values.  At Kaufman, Rossin & Co., that common purpose is the basis for a strong company culture.

“For optimum success and power of people in an organization, you must have goals and values that are clearly defined and commonly shared with a culture that supports it,” Kaufman told 300+ team members at his recent semi-annual seminar. 

The central atrium at Pixar Animation Studios in Emeryville, California

Foster Personal Connections
The Massachusetts Institute of Technology’s famous Building 20 became known as one of the most innovative spaces in the country.  Completely by happenstance, the building’s design and amalgam of experts promoted collaboration.  Walls were torn down and offices were constantly shuffled around to make space for more big thinkers during World War II.  Professors of all disciplines mingled with students in the long corridors of the building. People interacted, shared, and created like nowhere else! 

Jobs also saw the power in fostering personal connections to spark creativity and serendipitous problem-solving. As CEO of the budding animation studio Pixar, he designed the company’s headquarters with a central atrium housing essential services, so employees would meet, interact and brainstorm.

Likewise, Kaufman, Rossin’s main office in Coconut Grove encourages employees to meet in the central kitchen, gym, community center and other common areas. These chance meetings spark conversation, creativity and collaboration.

While modern technology makes it increasingly easy to communicate via email, text and social media, Kaufman reminded employees that there is no substitute for face-to-face interactions when it comes to developing and nurturing valuable personal connections with co-workers, clients, and other members of the community.

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Lisa Cawley Ruiz is a brand journalist at Kaufman, Rossin’s Miami office. Kaufman, Rossin & Co. is one of the top CPA firms in the country. Lisa can be reached at lruiz@kaufmanrossin.com. Connect with Lisa on LinkedIn.

Create STRONG passwords that you won’t forget!

Monday, June 11th, 2012

Too often we are expected to create random, complicated passwords with special characters and lots of restrictions. Especially now, with all the security breaches, we recommend the following method to help you develop passwords that are strong and easy to create and remember:

For website passwords, use the first four or five letters of the website to start the password. For example: 

For added security, add the @ symbol and a number (1,2,3,4,5,6,7,8,9,0) to the first letters of the website. For example:

Pick a phrase that is easy for you to remember, but that no one else will be able to attribute to you. For example:

Passphrase: “My Wife’s Birthday Is April Twenty-Fifth Nineteen Sixty Six”

Use the first letter of each phrase to form an abbreviation. For example:

m – My
w – Wife’s
b – Birthday
i – Is
a – April
t – Twenty-
f – Fifth
n – Nineteen
s – Sixty
s – Six

Abbreviated pass phrase: mwbiatfnss

Add the passphrase to the first letters of the website, the @ symbol and number. For example:

Following this pattern will help you develop strong passwords that are easy to create and remember. Remember that at a minimum the passwords must:

• contain at least 1 letter
• contain at least 1 number or punctuation mark
• be at least 8 characters long

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Jorge Rey, CISA, CISM, CGEIT is an associate principal and the director of information security & compliance for Kaufman, Rossin & Co. Kaufman, Rossin is one of the top CPA firms in Florida. Jorge can be reached at jrey@kaufmanrossin.com.

Using payroll service for QuickBooks 2009? It’s time to upgrade!

Friday, June 8th, 2012

Payroll service for QuickBooks 2009 will be discontinued on June 30, 2012, and all payroll subscriptions for customers with QuickBooks 2009 will be inactivated.

On July 1, 2012, QuickBooks 2009 will no longer automatically calculate correct payroll taxes or provide payroll tax forms. Live technical support and add-on business services such as payroll, credit card processing, QuickBooks Email, and online banking will also be discontinued.

However, if you don’t use live technical support or any of the add-on services, and are happy with your current version of QuickBooks, you can continue to use it.

Products for which services will be discontinued are:

• QuickBooks Pro, Premier and Simple Start 2009
• QuickBooks for Mac 2009
• QuickBooks Enterprise Solutions 9
• QuickBooks Premier Accountant Edition 2009
• Credit Card Processing Kit 2009
• Invoice Manager 2009

We encourage you to upgrade your QuickBooks software as soon as possible to minimize disruption to your business. If you have any concerns, please contact your Kaufman, Rossin professional or one of our QuickBooks ProAdvisors.

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Lisa K. Grossman is an associate principal at Kaufman, Rossin & Co., and a leader in the Firm’s QuickBooks consulting practice. Lisa is a Certified Public Accountant in the state of Florida and a QuickBooks ProAdvisor. Kaufman, Rossin & Co. is one of the top CPA firms in the country. She can be reached a lgrossman@kaufmanrossin.com.

Top 10 reasons you should update your estate plan before the end of 2012!

Wednesday, June 6th, 2012

1. Tax exemption is higher now than ever, but not for long.
   The current estate, gift and generation skipping tax exemption is currently $5,120,000 ($10,240,000) per couple. This is higher than it has ever been and is scheduled to drop to only $1,000,000 (only $2,000,000 per couple) in 2013 unless Congress and the President can reach an agreement. This may be a use it or lose it!
2. Your plan may disinherit your spouse!
   Do your current estate planning documents include a formula for determining the amounts passing to heirs or trusts for heirs based upon the exemption? With the currently high exemptions, your plan may disinherit your spouse!
3. Is your business safe from creditors or predators?
   Do you have a succession plan for your business? Does your plan include the use of asset protection trusts funded up to the amount of your exemption to safeguard your business from your heirs’ creditors, spouses and predators?
4. Interest rates are historically low!
   The interest rate that the IRS requires to be used for interfamily loans, sales to family trusts, and other planning techniques is at historical lows. The current required interest rate for a 9 year loan made in June 2012 is only 1.07%.
5. Discounting the value of assets is still available.
   Discounted values for lack of control and lack of marketability for interests in Corporations, Partnerships and LLCs are still available for interfamily transactions. There has been much talk about limiting such discounts, but currently, discounting is still available for planning purposes.  When discounting the value of assets by 33%, the effective interest rate on a note as mentioned in item four above drops to only 0.7%!
6. If you’re feeling generous – there’s no estate or gift tax!
   If you are currently giving or planning to give significant sums of money or assets to your favorite charity, the current low interest rates allow you to help your charity and transfer assets to your heirs with no estate or gift tax. Ask about the use of a charitable lead trust.
7. Consider a Roth IRA conversion for estate tax savings.
   If you have a large IRA or retirement plan as part of your taxable estate, which is in excess of the exemption, you should consider a Roth IRA conversion. This will reduce your taxable estate and provide years of tax free cash flow to heirs.
8. Avoid aggressive taxation on your vacation home.
   Do you have a vacation home outside Florida that will be subject to state estate tax and the costs of an ancillary probate administration in that state? Simple steps can avoid the often very aggressive taxation of these homes.
9. Is your life insurance subject to estate taxes?
   An irrevocable life insurance trust can avoid the estate tax and provide asset protection for your heirs.
10. Do you have a family member who has special health needs?
    You may want to consider unique provisions in your estate planning documents.

Don’t wait until the end of the year to get started.  Do it now!

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John R. Anzivino, CPA is in charge of Kaufman, Rossin’s estate, trust and exempt organization practice. Kaufman, Rossin & Co. is one of the top CPA firms in the state and offers a wide variety of services for high-net worth individuals. John can be reached at janzivino@kaufmanrossin.com

Another IRS email scam

Tuesday, June 5th, 2012

The IRS will never initiate contact via email. If you receive an email claiming to be from the IRS, it is a SCAM!

Below is a screenshot of one of the scam emails being sent.

If you have any concerns or questions, feel free to contact your Kaufman, Rossin professional.

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Scott F. Berger is a tax and accounting services principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

QuickBooks – There’s an app for that too!

Tuesday, May 22nd, 2012

Are you an app lover? Do you use apps for more than just games?

If so, you’ll appreciate that QuickBooks has the capability to integrate with numerous applications to simplify billing, invoicing, customer management, financial management, and mobile accounting. One of our favorite apps is Bill.com.

Bill.com is a paperless bill pay service that integrates with both desktop QuickBooks and QuickBooks Online. If you’re trying to organize payables, gain greater control over cash flow, and gain access to bill pay functions on your smart phone, then this app may be great for you.  Even if your accounting firm pays your bills for you, this app will help you get clear, instant access to your records.

How it works:

• You get a dedicated email address or fax number to send in copies of your invoices. They’re all archived in a secure, web-based portal.
• You can maintain proper internal controls by having separate staff upload, approve, and pay bills.
• Payments are sent via ACH, if accepted by your vendor, or via paper checks.
• If a paper check is required, funds are first transferred to Bill.com.  Then, a check is cut from Bill.com’s account. This lessens your exposure to check fraud.
• Users have access to a cash flow calendar allowing them to easily schedule, postpone, and project expenses.
• All accounting information exports to QuickBooks, eliminating the need for duplicate data entry.
• It works with any computer or mobile device. This provides a great solution for owners who travel frequently and want to stay on top of their expenses or retain the authority to pay bills themselves.

This is a trusted service, recommended by the AICPA’s CPA2BIZ division.  It’s gotten very strong reviews from the QuickBooks community for both its functionality and user support.  A package for up to 5 users is $49.00 per month plus $0.99 for each paper check required.

App savvy professionals can get more information at http://www.bill.com/.

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Meredith Tucker is an accounting services manager at  Kaufman, Rossin’s Boca Raton office, and a QuickBooks ProAdvisor. Kaufman, Rossin & Co., one of the top CPA firms in the country, offers  QuickBooks training and consulting services. She can be reached at mtucker@kaufmanrossin.com.

QuickBooks Tip: Set a closing date password – you won’t regret it!

Tuesday, February 14th, 2012

When can you set a closing date?
You can set a closing date on a daily, monthly, quarterly or yearly basis.

Why do you need a closing date?

• To restrict access to final numbers once a period is closed.
• To prevent staff from adding, editing or deleting transactions after the books are closed.
• To prevent changes to transactions after the information is sent to your accountant.
• To help prevent fraud.

What does a closing date do?

• Warns you when a transaction on or before the closing date is being changed.
• Tracks all changes.
• Prints a closing date exception report.

How do you set a closing date in QuickBooks?

• Login as the Admin.
• Click Company, Set Closing Date to open the Accounting, Company Preferences dialog.
• Click the Set Date/Password button. The Set Closing Date and Password dialog displays.
• Enter a closing date and optional password. You might want to discuss this date with your accountant first.
• Click OK to accept the closing date and optional password.

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Lori Bucci is an accounting services manager at Kaufman, Rossin’s Miami office, and a QuickBooks ProAdvisor. Kaufman, Rossin & Co., one of the top CPA firms in the country, offers QuickBooks training and consulting services. She can be reached at lbucci@kaufmanrossin.com.

Why in the world is an accounting firm attending SXSW?

Thursday, March 10th, 2011

As you’re reading this, I’m hopping on a plane to Austin, Texas. Why? I’m attending the biggest, most innovative, tech-savvy, social media and interactive conference in the nation – South by Southwest (SXSW)!

You may have heard of SXSW, as it refers to one of the most popular music festivals in the country. I will be participating in the 5-day interactive and film portion. Each day of the interactive and film section is filled with media-rich content relating to technology, social media, metrics, mobile apps, web development, forecasting and much, much more! This information is presented via panelists, speakers, workshops, book readings, organized meet-ups and social gatherings. It’s actually an incredibly overwhelming process just to prepare for this social highlight of the year! Each day  has programs that run from 8am to well past midnight including the film premieres. Sessions for each day are organized by topics, time and location (Austin Convention Center and participating downtown hotels). But within each allotted time frame, attendees must choose from one of the 30 – 40 different presentations to attend – all very useful and interesting! See for yourself by clicking here to visit the SXSW schedule. The conference ends with the Interactive Awards which has been phrased as the “Grammy’s” of social media. After all, Twitter and Foursquare were launched at SXSW!

So you may be wondering… why in the world is an accounting firm attending SXSW? Shouldn’t Kaufman, Rossin & Co., one of the top CPA firms in the country, be participating in conferences relating to accounting, tax, audit, International Financial Reporting Standards (IFRS), etc?  While these conferences reap tremendous value for our accountants at Kaufman, Rossin, we also want to see beyond the numbers.  Our firm is dedicated to innovation and providing valuable resources for our clients, prospects and community.

One major way Kaufman, Rossin has embraced innovation is by hiring a full-time social media coordinator – me! The Firm recognizes the importance and value that an online reputation brings to our brand and its ability to strengthen relationships. Therefore, SXSW is the perfect opportunity to learn how to think outside the box and be fueled by the latest tech and social media trends.

I will be absorbing heaps of information within the next week, and I look forward to sharing it with all of you. Be sure to check back for a recap of my experience and some creative ways I’ll be documenting my trip!

Aubrey Swanson is the social media coordinator at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  She can be reached at aswanson@kaufmanrossin.com. Connect with Aubrey on Linkedin. Follow Aubrey on Twitter.

Florida Unemployment Interest Assessment for Employers

Tuesday, February 15th, 2011

Florida borrowed funds from the federal government to pay unemployment compensation benefits. Since the loans will not be repaid by January 1, 2012, the state will have to pay interest on the funds. The law requires contributing employers to pay a proportionate share of the interest through a special annual assessment. 

The Florida Department of Revenue has mailed an assessment notice (Form UCT-27Fi) to Florida employers informing them of their proportionate share. Payment is due by June 30, 2011. Click here for more information about Florida Unemployment Compensation Law.

If you have any questions or concerns, please contact me or any Kaufman, Rossin professional.

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Annette Nunez is an accounting services manager at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country. She can be reached at anunez@kaufmanrossin.com.  

This information is not intended or written to be used for the purpose of avoiding tax penalties and it cannot be used for that purpose. Further, this information is a general description of current tax law and is not presented as a tax opinion on any general or specific tax issue or situation. This information may not be used to promote or market any transactions stated herein. Readers are advised to seek advice from their own tax advisors if they have questions.

Own rental property? New compliance rules!

Tuesday, February 15th, 2011

Owning a rental property was previously not treated as a trade or business for purposes of reporting payments to service providers. However, the Small Business Jobs Act, passed into law in September of 2010, changed that.

Now landlords must issue Forms 1099 to providers of services beginning with payments made in 2011. These forms must be sent to the service providers and the IRS beginning in 2012. Further, beginning in 2012, landlords must comply with the expanded Form 1099 reporting law enacted by the health care reform legislation enacted in March of 2010. That legislation requires businesses to issue Forms 1099 to providers of both services and goods. Previously, Forms 1099 were only required for services. The health care legislation also expanded the reporting requirement to include all to corporate providers of goods and services.

This might change, but for now you must comply.

Both of these expansions of reporting requirements are currently the subjects of proposed legislation to repeal or amend them. However, it is a good idea for landlords to now obtain the names, addresses and tax identification numbers of all service providers to whom the landlord expects to pay $600 or more in 2011. A Form W-9 should be requested from each of your service providers.

If you have any questions or concerns, please contact me or any Kaufman, Rossin professional. 

Dennis Fitzpatrick is a tax principal at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country. He can be reached at dfitzpatrick@kaufmanrossin.com.

This information is not intended or written to be used for the purpose of avoiding tax penalties and it cannot be used for that purpose. Further, this information is a general description of current tax law and is not presented as a tax opinion on any general or specific tax issue or situation. This information may not be used to promote or market any transactions stated herein. Readers are advised to seek advice from their own tax advisors if they have questions.