Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

CPA Mobilization Kit: Small Business

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Small Business

Tips For Getting Started

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Getting Started

• Stick to What You Know• Learn the Details

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Choose an Organizational Structure

• Sole Proprietorship• Partnership• Corporation• Limited Liability

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Getting Started

• Name Your Business• Write a Business Plan• Find the Best Location• Get Funding

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Getting Started

• Make it Legal• Insurance• Commitment• Lean on Experts

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Tax Tips for Small Business

• Auto Expenses• Home Office• Legal and Professional Fees• Meals and Entertainment Expenses

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Tax Tips for Small Business

• Travel Expenses• Expensing Deduction• Insurance Premiums• Bad Debts• Retirement Plan Contributions

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Tax Tips for Small Business

• Interest Payments• Hire a Family Member

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

How to Finance Your Business

• Do Your Homework• Research Your Funding Options

–Short-term debt–Long-term debt

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

How to Finance Your Business

• Debt–Bank Loan

• Equity–Private “Angel” Investor–Venture Capital–Selling Stock

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Preparing Your Business Plan

• Executive Summary• Company Description• Market Analysis• Operations Overview

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Preparing Your Business Plan

• Marketing Plan• Management Team and Staff• Financial Statements and Projections• Review with a Professional

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

What Lenders Look For

• Character

• Capacity

• Capital

• Collateral

• Conditions

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Get Your Financial Statements in Order

• Personal Financial Statements

• Balance Sheet

• P/L Statement

• Cash Flow Statements

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Explore Economic Development Programs

• Federal, State and Local Programs• Small Business Administration

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Insurance for Small Business

• Your Business is Worth Protecting• Mandated vs. Optional Insurance• Business Owner Policy (BOP)

–Property–Liability–Business interruption

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Insurance for Small Business

• Property Insurance–Building and Equipment–Valuable Papers–Crime–Business Interruption

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Insurance for Small Business

• Liability Insurance–General Liability–Professional Liability

• Key Person Coverage

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Insurance for Small Business

• Group Health Insurance–Medical–Dental–Vision–Life–Disability–Long-Term Care

• Workers’ Compensation

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Small Business Retirement Plans

• Simple IRA• 401(k)

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Small Business Retirement Plans

• Profit-Sharing Plan• Money Purchase Pension Plan• Defined Benefit Plan

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Selling Your Business

• The “Right Time” to Sell–Scan the Environment–Is Your Business Ready?–Time it Right

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Selling Your Business

• Finding Buyers–Competitors–Customers–Vendors–Suppliers–Investors–Entrepreneurs–Family

• Maintaining Records and Confidentiality

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Selling Your Business

• Determining the Business’ Worth• Seeking Professional Help

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Business Succession

• When to Start Planning• Transfer of Power• Transfer of Assets

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Succession Planning Alternatives

• Transferring to Your Children Over Time• Transferring to Your Children Through a Bequest• Selling Your Business to Family

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Succession Planning Alternatives

• Transferring With a Buy-Sell Agreement• Private Annuities

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Creating Effective Websites

• Determine Objectives, Messages• Communicate Effectively• Make it Easy to Navigate• Use Graphics Wisely

Created by the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants

Creating Effective Websites

• Include Contact Information• Develop Privacy, Security Policies• Give Visitors a Reason to Return