Accounting News and Notes

Atlanta/Duluth Georgia  CPA Provides Top Five Financial Tips to Success When Buying a New Business

When you get ready to buy a business it is a critical decision which you will want to approach with caution and due diligence to ensure that you are well informed in your purchase. A wrong decision will cost you great financial pain and emotional suffering whereas the right purchase will be a feather in your cap for many years to come. Below is a sample inquiry I that I might receive:

I just considering buying a new business and I am looking to investing alternatives that might be best to consider when evaluating my proposed purchase.

Below is my response:

Below you will find Top Five Financial Tips you will want to consider both in buying or selling a business.

• A Good Attorney. A good attorney is the best protection (along with following their advice of course) to help ensure that you evaluate, consider, and document all important/critical factors in making your decision. As the purchase itself is the culmination of your due diligence, you will want an attorney to draft the actual purchase agreement to ensure that all needed critical components of your decision are well documented and agreed to. Your acquisition agreement should also document to whom the total purchase price is to be allocated, as this will be important for both tax planning and to prepare your tax return at year-end.
• A Good CPA. Before you make any substantial investment in any new business venture I suggest you discuss it with a CPA who can help ensure that your due diligence allows you substantive enough information to make a wise and prudent decision. Though financing is an important part of the equation the most essential piece is to consider the nature, scope, size and anticipated results of your new business venture.
• Evaluating Past Income Tax Returns & Interim Financial. Due diligence on the company’s financial condition, I suggest that we get at least two years of financial statements and tax returns, a year to date financial statement for the year including the balance sheet and the profit and loss, a copy of all material leases that you plan to assume, a non-compete on the prior owners and any key employees, and a list of all fixed assets and their fair market value that you will be buying, a detailed list of all inventory at cost, a list of open receivables, and a list of open payables.
• Due Diligence Procedures. Determining what specific procedures were done to evaluate the integrity of the financial statements (i.e., consultations with their major vendors, customers, an evaluation of checks written being sure that all checks are valid business expenses and have been properly recorded, consultations with their banker, their prior CPA, an evaluation of their overall books and records and internal controls, and tracing several months detailed deposits to the bank statements along with reconciling the total bank deposits for the year to the financial). Also I would suggest getting copies of detailed payroll records for employees and independent contractors so that you are aware of the staffing needs/requirements and those monetary considerations. A good CPA can help evaluate these in detail looking at trends, the market, and other demographic data, and any undue/excessive concentration of business & clients, technology etc., to ensure you are fully aware of what you are buying.
•  Gain Independent Verification/An Appraisal. An acquisition that also includes the of buying real estate as part of the total purchase, you will want to determine fair market value by having an independent appraisal performed.

The above is a good list to get started and then to see where these answers/questions take you. Please note however, there is no substitute for the facts and intuitiveness that a good CPA/financial adviser can bring to the table to evaluate buying a business and its purchase/sales price.

Utilizing a payroll service will do much to make this administratively burdensome process more seamless than if you strive to go it on your own. To learn more visit http://www.hiscpa.com/payroll.html

Knowing what is a legal tax deduction and the documentation thereof is essential to sound business management. To see  how you can be ready http://www.hiscpa.com/business-expenses.html

Ensure that your workers are properly classified predominantly to ensure that there are no workers, who are truly employees, that you are in error classifying as employees, visit  http://www.hiscpa.com/independent-contratctor.html

Contact HIS CPA PC (A Christian Atlanta CPA Firm) today.

To learn more about addressing IRS Tax Issues and Back Tax Returns visit http://www.hiscpa.com/working-with-the-irs.html  

John Dillard is an Christian Speaker/Author and an Atlanta CPA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!    

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

Serving Atlanta, Duluth, Gwinnett, Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, and Douglas.

Gwinnett CPA Provides Directory of How Atlanta Business Owners/Entrepreneurs Can Get a Business Loan

Getting Your Banker to Say Yes to Financing Needs…Getting Financing For Your Business includes getting to your banker information they will need to properly evaluate your business credit/repayment ability and whether or not to extend financing to your business. Getting these items to your banker in one well-organized and documented marketing package will do much to assist the banker/lender in both feeling comfortable with extending financing to you and your business as well as properly evaluating your business. By putting together a good “package” for the banker you have the ability to put “your best foot forward” thereby allowing your story to be told.

If you have a good business, good cash flow and good opportunities for the future, ensuring that your loan package for your banker will do much to help ensure prompt completion of your loan request. A well-organized loan package will include:

-Last two years corporate and personal income tax returns

-An interim/year-to-date financial statement

-A sound and logical business plan

-Business promotional brochures

-A narrative cover letter detailing the needs and use for loan monies

-Any other substantive corroborating financial, operational, industry, demographic and economic information

The goal of all of the information will to that it will essential tell a story and that the loan request will be viewed by the banker/lending source as a natural progression and logical decision for both the company and the bank. Keeping in mind that banks only make money when you pay back the loan in full along with interest will do much to ensure that your business plan and strategy for the use of the money are well-thought out and organized. Essentially a bank or traditional lending source is looking to extend credit only when they believe you and they both believe they will be repaid.

Recently we helped one of our clients with an introduction to a smaller but well capitalized bank in placing with them a total credit of $200,000, in spite of the recent bad economic news. I have learned over the years while practicing as an Atlanta CPA that frequently working with small banks offers much more flexibility than larger banking institutions. Accordingly this particular $200,000 line was place with what would be deemed a predominantly local/regional bank.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Helping Clients with Corporate & Personal Income Taxes, Incorporation Advice, Tax Planning, Virtual CFO, Financing, Business Plans, Back Taxes, Offer in Compromise, Tax Advocacy, Business Acquisitions & Sales, Business Plans, and IRS Representation. 

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, and Beyond

Gwinnett CPA Teaches Utilization of Promissory Notes to Protect Your Georgia Based Business

Recently I received the below inquiry seeking advice on setting up a Promissory Note:

Is there a “normal or required” period that a Loan To Shareholder needs to be repaid?

The below is my response:

The “normal amount” would be what a bank would routinely do as a practical matter of doing business. With all loans you will want to ensure that you have a promissory note signed by all parties confirming the terms and conditions. Frequently businesses and individuals alike may extend, grant or receive credit in the furtherance of their business and personal interests.  A basic understanding of promissory notes and their use and application are critical to protecting company assets, cash flow issues, as well as profit maximization.  These initial parameters of review prior to signing a promissory note will be essential to their final agreement.  These issues will be key to helping ensure the business deal you get is actually the one intended. To read more about Promissory Notes visit http://www.hiscpa.com/promissory-notes.html

Also you can see what a Sample Promissory Note might look like:

SAMPLE PROMISSORY NOTE

FOR VALUE RECEIVED, [borrower] promises to pay to the order of [lender] the principal sum of [loan amount] in legal tender of the United States, with interest thereon from [loan date] at the rate of seven (7%) percent per annum, on the unpaid balance until paid.  Principal and interest shall be payable at the office of the note holder, [office location], or at such other place as the holder hereof may designate in writing according to the following terms:

1. The payments will be [monthly payment amount] and due on the first day of each month beginning [date] and ending on the first day of [month and year].
2. A current Financial Statement will be submitted by [date]
3. The following assets will be assessed as collateral until the entire debt is retired:

   [list of assets]

Should any installment not be paid when due, or should the maker fail to comply with any of the terms or requirements, the entire unpaid principal sum evidenced by this Note, with all accrued interest, shall, at the option of the holder, and without notice to the undersigned, become due and may be collected forthwith or any and all collateral sold by most expedient means, time being of essence of this contract.  It is further agreed that failure of the holder to exercise this right of accelerating the maturity of the debt, or indulgence granted from time to time, shall in no event be considered as a waiver of such right of acceleration or stop the holder from exercising such right.

Installments not paid when due shall bear interest at the rate of seven (7%) percent, per month, from maturity.  Should this Note, or any part of the indebtedness, evidenced hereby, be collected by law or through an Attorney at Law, the holder shall be entitled to collect Attorneys’ fees in an amount equal to fifteen (15%) percent of the principal and interests, and all costs of collection.

Undersigned guarantor, endorser or other party, waives demand, protest, notice of demand, protests and non-payment.

Privilege is reserved by the maker of this note to pay all or any part of this indebtedness prior to maturity without penalty.

Signed: [signature of borrower]
Company: [company name]
Title: [title of signatory]
Date: [date signed]

Professional Advice 

Never go it alone.  Your CPA is a critical part of the loan procurement process, as his wisdom, knowledge, and insight will help guide you to the best loan.  Frequently a little tweaking or good negotiation skills will save tens of thousands of dollars resulting in an improved bottom line and a smoother cash flow for your business. All promissory notes should be drafted in light of the business deal, current economic conditions, credit collateral, negotiation, etc. Utilizing a business attorney to draft a Promissory Note specific to your unique circumstances and needs is essential to having your wishes, needs and desires capable of being fully addressed and enforced. 

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Contact HIS CPA PC (A Christian CPA Firm) today.

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

WWJD…What Would Jesus Do if He Was a CPA 

Award Winning CPA Serving Grayson, Lawrenceville, Snellville & Beyond 

We strive to live our lives by a higher standard; not just to live by the world’s but to live by God’s standards. Though I am challenged to be the very best CPA I can be by helping clients keep their tax bills as low as legally possible. However I believe as a CPA and a Believer I am called to a much higher standard in helping clients develop tools and resources to plan for much more than their taxes. A CPA is the best one to begin this process and after a CPA has met with a client and determined much of their financial picture and tax issues, it is time to take the relationship to the next level and to help clients determine a multitude of issues including: 

-Buying Life Insurance. Being sure to have enough life insurance to take care of your family, debts and needed living expenses is essential to ensuring that your entire family and your legacy will not be changed by your passing. 

-Buying Disability Insurance. Though life insurance is for your survivors, disability insurance is for you, in the event of a life threatening illness or injury that leaves you unable to both take care of yourself and to fend for our family. 

-Setting up a Will. If you pass away without a will, then the state will decide what happens to your children and to your assets. A well drafted will enables others to ensure that your last wishes are followed out and adhered to.

 -Setting up a Trust. Frequently taxpayers can use trusts to ensure that their assets and desires are carried out both during and after their lives. Trusts can be set up for a myriad of issues ranging from helping to save estate taxes to leaving your assets to your church or favorite charity. 

-Consideration of Guardianship. I want to know who my children will live with if I pass and even more so if my wife and pass at the same time. My children are gifts from God and I want to ensure that they are loved, protected and encouraged even if I am not around. 

-Estate Planning. For taxpayers who exceed the federal mandated thresh-hold for the payment of estate taxes, proper planning can do much to both limit the tax bill that will otherwise ultimately become due. Also proper planning can be used to ensure that assets such as a business can be passed to heirs without having to sell it to pay the required estate taxes.

 -Setting up a Business Credit Line. Frequently a business credit line will be the difference between a business that succeeds and fails and one that is marginally vs. very profitable. A line of credit can do much to help you get through tough business cycles as well as to take advantage of opportunities in the marketplace and growth opportunities. 

-Procuring an Personal Equity Line on Your Home. An equity line on your home is essentially financial insurance. As your build equity in your home and your credit score, many/most banks will put in an equity line on your home allowing you instant access to emergency funds if ever needed. 

-Investing. Our natural tendency is to buy high and sell low. A well informed and trained adviser can help educate you in the many skills that are available to help ensure that you make prudent investment decisions as well as to plan for retirement.

 -Planning for College/Education Expenses. Planning for college is perhaps one of the most important financial decision you will ever make in your life and the life of your child. Being prepared for college and their expenses will help ensure your financial future and give your children the best chance for initial career success.

-Setting up a Retirement Account for Your Business/Personally. Getting ready for the  “Golden Years” should be a priority for us all. Americans have a tendency to live to the hilt and to ignore the future and nothing could be worse for yourself or those you love.

Though my short term goal for my clients is to save tax dollars, my larger goal is that they have a better life by wise investing and prudent choices. In order for me to accomplish this I have to always remember WWJD…If He Was A CPA. 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette

Why Your Credit Score Is More Important During the Continuing Credit Crunch

I t is always a good idea to be vigilant about your credit score, but even if borrowing loosens up a bit in 2009, you still need to do everything necessary to keep your credit score high. Fair Isaac, the company that created the FICO score, has been working on a new version of its credit scoring method that might have serious consequences for you if you.re planning on borrowing for a home or opening any new credit line in 2009.

The new version of FICO is going to be particularly focused on your balances, not only on your on-time payment records. Your top priority under this new system: Get balances down. Reports say that the new FICO revision will actually allow a bit of lenience on late payment – something that might affect more than a few consumers with the downturn in the economy. Obviously, this won’t mean that someone can chronically pay late, but once or twice won’t make the same impact as in earlier FICO versions.

Yet credit utilization – essentially the amount of credit you.re actually using relative to your credit limit – is a much bigger deal simply because high balances are so prevalent right now. From the lender’s perspective, high balances mixed with a tough economy means a higher risk of default among customers. So what’s a good target utilization rate for all your revolving credit accounts? No more than 50 percent of your credit limit, and if you can get it lower than that over time, that’s a good plan. So, the lower your credit utilization, the better your score.

What does that mean for ordinary Americans who don’t meet that under-50 percent goal? It means you shouldn’t be applying for new credit or refinancing for awhile. But because most lending institutions may continue their strict lending requirements, you might as well defer borrowing goals in favor of reforming your credit behavior.

So instead of bemoaning your tougher chances of getting a loan for a home or  a car, why not use the current environment to launch a credit makeover that will position you for a better shot six months to a year from now? Some ideas: You’ll need at least a 740 score for the best rates: You’ll often hear that credit scores of 700 and up will get you best customer status with lenders. You should aim higher. For the lowest rates and best terms, you need to get your credit score above 740 (the top credit score, by the way, is 850), so keep that target in mind. Budget: If you.ve never reviewed your spending and picked out areas where you can cut, you.ve never done a budget. Start tracking your spending either on paper or with financial planning software and start pinpointing what spending you can shift over to paying off debt.   

One more time — get those balances down: Get all your nondeductible debt under 50 percent of your credit line in each account. Go after your balances with the highest interest rates first, and once you hit 50 percent…keep trying and get those balances down further.

Get some advice: It might not be a bad time to sit down with a tax professional or a financial adviser, to talk about the way you’re going to manage your debt going forward. Keep an eye on your credit reports: Remember that you have the right to get all three of your credit reports from Experian, TransUnion and Equifax once a year for free. You can do so by ordering them at annualcreditreport.com. Don’t order all three of them at the same time, though. By staggering receipt of each of your credit reports, you’ll get a continuous picture of how your credit picture looks because the three bureaus feed each other the latest information. You’ll also be able to clean up errors as you find them and you’ll also keep an eye out for identity theft. Keep in mind that not all .free. credit report sites are free . If they ask you for a credit card number, remember they.re doing that because they want to charge you. Just go to the site above and you’ll be fine.

Get on time and pay more than the minimum: Yes, we indicated above that you might get a bit of a break on late payments with the new FICO system, but that’s a break you should consider only in a dire emergency. Electronic bill payment will allow you to save on postage while guaranteeing on-time postage, and the budgeting advice mentioned above will allow you to put a few more bucks toward getting that loan or credit card bill paid off.

Once you.re paid off, don’t close the account: In the world of credit scoring, closing accounts (even those that have not had balances for years) is a lousy idea. Lenders want to see a long record of credit management, and longtime accounts that you haven’t touched in years may actually help your score because it shows you have some restraint.

This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by Tim Madison, CFP, ChFC, CASL with MONEY CONCEPTS INTERNATIONAL, INC.  who can be reached at Phone: (770) 777-8979

Atlanta CPA on Lending Sources/Business Incubators…Resources for Metro Atlanta’s Entrepreneurs

To find out what the SBA (Small Business Administration) is doing in your area of town, you can get a full listing of closed loans be month at http://www.ajc.com/business/content/business/smallbusiness/index.html This list is sorted by county, loan date, amount, bank/lender, name of borrower, address, and its NAICS/tax code for easy reference. Here you will be able to get at a glance a complete listing of SBA loans and activity in your area and throughout the state.

For business’s who do not fit a traditional banking relationship or that of an SBA lender you can see a list of Atlanta Venture Capitalist (VC) . The listing can be viewed at http://www.ajc.com/business/content/business/extra/vc.html and includes the name of each VC, the year their business was established, their address, lending focus, total capital, preferred lending range, and list of sample funds/incubated companies. Although a VC will typically request a large amount of equity ownership many business opportunities are well suited to this type of lending. Having personally experienced the Atlanta Venture Capital Marketplace firsthand, I have learned that pursuing a VC will most likely prove the most expensive of all Financing Options potentially available to a business owner. For those we are not quite ready to purse Venture Capital money, asset based lenders are often a viable financial alternative. For more information visit http://www.hiscpa.com/blog/2009/04/23/asset-based-lending-finding-alternative-sources-of-funding-your-atlanta-business/

For business’s who are not yet quite ready to go to market their business Incubators who will work alongside and with business owners to help develop their ideas and to mature their business plan. For a listing of Atlanta Incubators please visit http://www.ajc.com/business/content/business/extra/incubators.html Including in this listing you will find the Incubators full name, address, phone, officers/partners, their industry focus, samples of prior clients, their size in terms of square footage, and the average length of past incubations (i.e., the time a business is served by the Incubator).

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Atlanta CPA Advises on Atlanta Venture Capital Sources

Finding and Sourcing Financing Sources for your Metro Atlanta Business

For the newer business owner with a great idea who needs money venture capitalist (a VC) or an angel investor are often great places to start. These types of investors will often require you to give away a percentage of the company’s stock and therefore its long-term profits as opposed to a bank that will solely charge interest. Though a VC or angel investor will be therefore substantially more expensive in terms of financial outgo over the years, they are often the only valid option for an entrepreneur with a unique idea, niche, product, or service.

There are several options when combing the marketplace looking for potential investors who might have an interest in investing in your company. Web sites such as www.thefunded.com are good places to start. There you can search for potential financing options by geographic area, size of the loan needed, and type. On this site you can also obtain ratings of funds for which you might be considering, which appear to be from the prospective borrowers themselves. Seeking any substantive form of capital, whether from traditional or VC sources will necessitate one having a sound and well thought out business plan or model that will tell a story motivating a potential investor to engage. Also www.startuplounge.com and www.tagonline.org will prove useful to a potential entrepreneur in seeking financing for their venture. Working closely with your CPA and attorney and allowing for a reasonable budget to negotiate a deal, often in the tens of thousands and above, will be critical components of the process along with that business plan which will virtually sell itself.

Having personally experienced the Atlanta Venture Capital Marketplace firsthand, I have learned that pursuing a VC will most likely prove the most expensive of all Financing Options potentially available to a business owner. For those we are not quite ready to purse Venture Capital money, asset based lenders are often a viable financial alternative. For more information visit our blog at http://www.hiscpa.com/blog/2009/04/23/asset-based-lending-finding-alternative-sources-of-funding-your-atlanta-business/

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Atlanta CPA Teaches the Loan Application Process and Atlanta Loan Procurement

Author/Speaker John Dillard CPA teaches Atlanta business owners and entrepreneurs how to both apply for a loan and loan procurement

Getting Your Banker to Say Yes to Financing Needs…Getting Financing For Your Business includes getting to your banker information they will need to properly evaluate your business credit/repayment ability and whether or not to extend financing to your business. Getting these items to your banker in one well-organized and documented marketing package will do much to assist the banker/lender in both feeling comfortable with extending financing to you and your business as well as properly evaluating your business. By putting together a good “package” for the banker you have the ability to put “your best foot forward” thereby allowing your story to be told.

If you have a good business, good cash flow and good opportunities for the future, ensuring that your loan package for your banker will do much to help ensure prompt completion of your loan request. A well-organized loan package will include:

-Last two years corporate and personal income tax returns

-An interim/year-to-date financial statement

-A sound and logical business plan

-Business promotional brochures

-A narrative cover letter detailing the needs and use for loan monies

-Any other substantive corroborating financial, operational, industry, demographic and economic information

The goal of all of the information will to that it will essential tell a story and that the loan request will be viewed by the banker/lending source as a natural progression and logical decision for both the company and the bank. Keeping in mind that banks only make money when you pay back the loan in full along with interest will do much to ensure that your business plan and strategy for the use of the money are well-thought out and organized. Essentially a bank or traditional lending source is looking to extend credit only when they believe you and they both believe they will be repaid.

Recently we helped one of our clients with an introduction to a smaller but well capitalized bank in placing with them a total credit of $200,000, in spite of the recent bad economic news. I have learned over the years while practicing as an Atlanta CPA that frequently working with small banks offers much more flexibility than larger banking institutions. Accordingly this particular $200,000 line was place with what would be deemed a predominantly local/regional bank.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Atlanta CPA on Addressing Financing Needs for Atlanta Business Owners & Entrepreneurs for Decades

Helping Clients in a Down Economic Market…Procuring $100,000 line of credit for Atlanta Based Business

Despite the news of the times and the severity of the downturn in the economic market, there remains financially sound quality lenders who are seeking to extend credit to qualified business owners. As you would expect, however, banks are getting back to the basics of lending practices that ruled the decades of lending practices before the recent downturn in the economy. Rather than the “free wheeling” lending business practices of the past, banks and other traditional lenders are seeking to lend monies to well-run companies who have an idea to expand both the revenue and profit of the business.

Lenders are now more than ever looking to the Five C’s of lending:

-Credit

-Cash Flow

-Character

-Collateral

-Conditions

If you have a sound business model, a good business plan, good payment history, adequate collateral and the respect of your peers, lending sources are available and credit to extend credit to your business. However, as has been true for decades often having the attention and relationship with a good smaller bank is the best bet for entrepreneurs and business owners who have definitive financing needs. Smaller banks and lenders are often much more flexible and willing to extend credit when larger regional and national banks will not. Working with your CPA who has these contacts and is aware of economic conditions and trends in your area is essential to procuring and especially funding credit needs in tough economic times.

We have recently helped a business owner here in Atlanta area obtain and procure a $100,000 needed credit line for their business. The credit line could not have come at a better time as the economy was shrinking and it allowed the company sufficient cash flow to cash flow their business needs and allowed them sufficient time for them to package their business and to sell the business outright. It is probable that without the credit line in place that the business would have folded before the owner could “cash in” by the selling of their business to a competitor for hundreds of thousands of dollars.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Building Your Business Credit…Getting Financing For Your Atlanta Business

There is no magic pill to take that will make you business “bankable.” As you would expect, banks make loans with the goal of being repaid, thus some of their primary concerns will center on your most recent past history, experience and the basics of your business itself. Frequently however business owners instead will look at a bank in the hope that they will do Venture Capital (VC) funding. VC funding is commonly used when you have a new business idea or a start up venture that is more speculative in nature. This could be for either an established business or a very new one, but the central theme in VC funding is that there is more uncertainty and much more risk that one would find in traditional bank funding.

Building Your Credit in the only true way that matters evolves over time as you build your business over time and develop a documentable track record. For example, when I initially started my CPA practice over twenty years ago, it is difficult to gain a loan in the tens of thousands. Now however, banks are more than willing to grant and extend credit in the hundreds of thousands. There is nothing about me that has changed. I am still a CPA and have remained in my chosen field of profession. However that is where the similarity stops as over time my business has developed a following, a predictable cash flow and a track record. I cannot recall all the times I have watched in my career as a  CPA in Atlanta where business owners have failed to prepare; which is in essence, preparing to fail.

Banks want to see that you have been a good steward and that all that you have managed to date that you have done so with care. Often this means that you will need to make financial decisions that by worldly criteria are unpopular, choosing to manage money, while answering to a higher standard and by conservative standards. This means that frequently you will pass on business opportunities, turn down credit and have a mental attitude of being debt averse. In fact, the best way to ensure that you have money down the line, is not to spend it. Doing so will require you to pass on business deals that sound too good to be true and that you will work to stay out of debt and then to liquidate it, when you acquire it. Though this is not the way the world sees money, it is the best way to ensure that when you seek to obtain credit for a valid business proposal and expansion of your business that banks and traditional lending sources will be on our side with their checkbook ready.

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how His CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html