PRESIDENT'S MESSAGE 

Greetings SBBA Members:

 I can hardly believe another month has flown by!  I hope everyone is catching their breath after tax season and getting caught up on all those projects that get shelved “until we have time.”  It would be great if some of you that have not been able to attend the monthly meetings could find time to join us this month.  The exact speaker has not yet been confirmed but the topic will be various types of insurance related to self employment.  It seems that insurance is an ever changing industry and we hear something valuable every time we have an insurance speaker. 

Hope to see you Tuesday! 

Maureen Turk
SBBA President

A joint agency power of attorney form is now available, according to the January/February 2003, Tax News from the California Franchise Tax Board.  Form BOE-392 will be accepted by the Board of Equalization, Employment Development, and the Franchise Tax Board.  The new joint power of attorney is available on BOE’s website:  http://www.boe.ca.gov/info/miscpam.htm

 The Ins & Outs of Hiring a Consultant

Submitted by Brenda Richter, CPA – A Principa Alliance Member 

While small businesses have to be ever vigilant in how they spend their money, a consultant can be an effective resource for pushing the business into the next stage of growth.  A consultant can also offer a valuable outside perspective for companies who are struggling. 

Think of it this way:  Often a financial advisor or consultant plays the role of a CFO.  Many small businesses cannot afford a full-time position dedicated to assessing the financial impact of important business decisions.  Outsourcing this task to a respected, qualified and known consultant can give you valuable insight into critical financial and business decisions—everything from how buying a large piece of equipment will affect the business financially to how effective specific growth strategies may be for your specific business. 

But you want to be very careful not to be swept away by fast-pitching business consultants who use high-pressure tactics.  If someone comes on super strong and makes you feel uncomfortable, listen to your instincts.  Remember this is someone you will need to trust and work with closely.  After all, you are entrusting him/her with your business and your livelihood.  You need to feel confident with the advice and suggestions the person offers.  You need to trust that this person has your best interests in mind and not his/her wallet. 

Business consultants offer all kinds of services, so be sure to investigate.  Be clear about what you’re look for (i.e. professional development training, financial advice, organizational development, business development or marketing skills) and inquire about the person’s experience.  Do not hesitate to ask for references.  Do not just rely on their marketing materials. 

Talk to current clients to get a sense of how the person works.  Ask a prospective consultant for a list of referrals.  Remember to inquire about ongoing support.  It’s not enough to have a plan in most cases.  You will want to make sure there will be support or help available if you run into trouble during implementation.  Negotiate fees for this support before signing a contract.  Clearly outline what kind of support (phone, face-to-face, repeat training etc.) and the charges in the contract.

The Treasury Department has extended the minimum holding period for United States Savings Bonds from six to 12 months for bonds dated on and after February 1, 2003.  The minimum holding period is the length of time from issue date that a bond must be held before it is eligible for redemption.  Both Series EE and I bonds are affected.

I am sure you noticed the new “Third Party Designee” line on form 941 (Rev. January 2002).  I like that the designee uses a “personal identification number (PIN)” rather than a social security number.  The 941 instructions say (please note that the “you” in the instructions is the individual authorized to sign the return), “by checking the ‘Yes’ box, you are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return.  You are also authorizing the designee to:

 ·         Give the IRS any information that is missing from your return.

·         Call the IRS for information about the processing of your return, and

·         Respond to certain IRS notices that you have shared with the designee about math errors and
    return preparation.  The notices will not [my italics] be sent to the designee.

You are not authorizing the designee to bind you to anything (including additional tax liability) or otherwise represent you before the IRS…The designee authorization cannot be revoked.  However, the authorization applies only to issues that arise during the processing of this return and will expire 1 year after the due date of the return.”

I wish I had been able to attend the March meeting and hear Sergeant David Whittham of the Santa Barbara Police Department speak on identity theft, fraud, and embezzlement.  I do hope the speakers’ committee invites him to speak again.

The Winter 2002 SSA/IRS Reporter has some good advice regarding Social Security numbers.  “The Privacy Act says that no federal, state, or local government agency may deny you any right, benefit, or privilege under the law because you refuse to give your Social Security number unless” the disclosure is required by Federal law.  The Act “requires any federal, state, or local government agency requesting your Social Security number to tell you” if the disclosure is mandatory or voluntary; what law or other authority requires your number; and how your number will be used.

Some businesses use Social Security numbers as an easy way to keep records.  There is no law that prevents businesses from asking for or using your number.  It is the consumer’s choice to give it or not.  Remember that giving your number is voluntary.

My Two Cents

Ken Jurgensen shared his thoughts about SBBA via the e-mail list early in April.  I’m going to add some of my thoughts.

I have been a self-employed bookkeeper for over twenty years.  I knew about SBBA almost from its start and have always referred others to the association, although I hadn’t thought of joining.  After all, I had been in business for awhile and clients seemed to appear just as I needed them.  A tax client of mine hired Mary Cathcart to do payroll a few years ago and I called Mary to ask a question.  It was so much fun to talk about payroll programs and bookkeeper “stuff” that I realized SBBA was not just a job referral service.  It’s a support system.  I went to my first meeting and I was hooked.  I love the camaraderie, the sharing of information, the discussions via the e-mail list, and the meetings.   

My schedule currently makes it harder to attend the meetings, but every time I go, I enjoy it immensely.  Plus, the food’s good.  See you Tuesday!!

Your editor this month was Julie Raffety.  Next month’s editor will be Jo Rogers.  Thanks to those who submitted information!

In keeping with Board policy and the stated purpose of the organization to provide an exchange of information and further the education of our members, the Newsletter Committee will maintain a calendar listing of educational opportunities available to members and the public.  This listing will contain information that you send in.  Please send your contributions to the Editor.

QuickBooks SEMINAR -- QuickBooks FOR CONTRACTORS

Thursday, July 24, 2003,  9AM – Noon  $69

This informative class is designed specifically for the Building Industry.  
We will be covering: Estimates & Items, Customizing Invoices, Cost Plus/T&M Tracking,
Job Cost Reports - & Much More!  Bring Your Questions! 

Class Fills In Quickly So Register Today! 

For Seminar Details & Registration, Go To:   Monicadittrichconsulting.com  Or Call (805) 560-1384

Wynette Winkler  has heard from Adult Education that they will be offering an intermediate level bookkeeping course starting June 2.  No further details yet, but more information will be posted on their website later in May. 

Visit the Adult Education website at:  http://www.sbcc.edu/ce/