Craig Hanson CPA - February 2021

Craig Hanson CPA - February 2021

February 2021

HANSON HEADLINES

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A Commitment to You

That makes creating a meaningful relationship so important. Throughout the years, I’ve learned that the biggest component of this is communication. Whether it’s a romantic, platonic, business, or transactional relationship, you have to be able to share how you're feeling, and the other person has to do the same. If you don’t, that’s when things fall apart. For example, if we don’t effectively communicate together, your financial plan or tax return may not reflect what you truly want or need. This past year tested communication in a variety of ways. I missed in-person interactions with my clients, especially those I’ve been able to get to know very well over our many meetings together over the years. I do enjoy the ease of video calling, and as someone who tends to be on the shier side, I don’t mind communicating through email, phone, or video call. However, I do miss those great chats in person at the office. With great communication comes trust — a vital component to any relationship, especially in my world. I’m working with people’s businesses, livelihoods, and families. My clients trust me with some of life’s biggest pieces, and I do not take that lightly. Our relationship has to be built on proper communication and trust. Otherwise, I’m not doing what I need to do for them. This February, I hope you take stock of your relationships. Could you be connecting with your clients on a more regular basis? (That’s why I started this newsletter!) Are you properly interpreting what the people in your life need from you? Don’t be afraid to ask. Our relationships are worth growing and preserving. After all, there is a whole month — and dozens of other holidays — that focus on celebrating them. Why I Value Our Relationship

As short as it is, February can be a busy month. There’s the hope of a quick spring that comes with Groundhog Day, the health reminder we get by recognizing American Heart Health Month, and the love we share on Valentine’s Day. Of course, my work starts to pick up as we arrive in tax season each February. Each of these holidays tends to boil down to one idea: relationships. Our relationship with Mother Nature is tested each Feb. 2, our relationship with our hearts is emphasized, and our relationships with each other are illuminated with candy hearts and sweet cards. And, I’d be remiss if I didn’t recognize that as tax season speeds up, my relationships with each one of my clients is highlighted, too. Whether we work together frequently or merely connect a few times each year to review their tax return and plan for next year, I truly appreciate each one and the conversations we have. I have a diverse range of clientele. I work with business owners looking for ways to optimize their growth and invest further in their business. I also work closely with families in all stages — single, newly married, a house with kids, retired, and so on. I have to be an open book, willing and ready to take on whatever problem anyone may come to me with and figure out how we can best solve it for their lives.

—Craig Hanson

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The COVID-19 Economy Demands Happy Employees — Even Remote Ones! It’s Not Just for Silicon Valley Anymore

You know those businesses that are just different ? Think of Costco, Vistaprint, Whole Foods, and Southwest Airlines; they are great to do business with, you can tell the people who work there are happy — and you just know they’re killing it from quarter to quarter on their earnings report. Even during COVID-19, they’ve kept on trucking. The secret they know is that one great employee equals three average employees, and it’s cheaper to pay superstars 150% or more of the average industry wage to keep them around. What would it look like if all your employees were superstars? For starters, you might have weathered the pandemic better. Those kinds of employees are flexible problem- solvers who roll with whatever is thrown their way, and they stick around through tough times. On the flip side, if you saw people quit, I doubt they were all that happy or adding value in the first place. But how do you stop other employees from following in their footsteps? To make employee transitions easier, try the open exit. Under this plan, employees notify their manager when they start looking for a new job, sometimes months in advance. This allows you to keep their schedule flexible for interviews, and they can use you as a reference. In turn, during times of turnover — like the pandemic — you’ll have 6–8 weeks to find and train their replacement,

and your business won’t be short- staffed while you ramp up a new hire. Ideally, that new person is at full capacity by the time the old employee actually walks out. It pays to show the love. That can be tricky with remote workers, but good pay is one good way to do it. Benefits are another: Resist the urge to make your remote employees contractors! But don’t neglect the small things, either. A birthday card or note of appreciation in the mail can make all the difference. It’s tempting to view the flexibility of remote work as a reward in and of itself. But do your systems allow for true flexibility, or do they keep your employees stuck at a desk or constantly on the phone? Streamlining

your business, with employee input, is something we should all be doing.

Many books and training programs have other ideas on this topic. Try “Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives” by Kip Tindell. I also recommend “Delivering Happiness: A Path to Passion, Profits, and Purpose” by Tony Hsieh. Finally, D.H. Hansson and Jason Fried’s “Remote: Office Not Required” is required reading for anybody doing business remotely these days. It's anyone’s guess what 2021 has in store, but no matter what it is, you can’t afford unhappy employees. Read up, and then level up your business.

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Fraser Gets Keys to the Citi The 1st Female CEO of Any Major Wall Street Bank

Since Jane Fraser, Citigroup’s former president and CEO of global consumer banking, was named the bank’s new CEO, she’s been profiled by People magazine, interviewed in Time, and discussed extensively by the news media. That makes sense: Fraser is the first female CEO of any major Wall Street bank. She’s also bringing new thinking to the sometimes stodgy industry, and those in the world of finance and business are watching her carefully, especially because Fraser will be leading the company through one of the most turbulent markets in recent years. That turbulence extends beyond the coronavirus pandemic and its economic fallout. Last summer’s protests over racial inequities have many Americans blaming capitalism itself for injustices, and Fraser is attuned to that. “The wealth gap is disrupting society and has caused people to lose faith, and so much of the problem comes down to access,” she told Time. “The average Black family in America has just one-tenth the wealth of the average white family.” Fraser worries that the economic fallout from the pandemic could exacerbate these inequalities if not addressed. She believes that solving this dilemma starts at home. Citi recently divulged statistics regarding the pay gap between its male and female employees, and Fraser is pushing for more diversity in its workforce. Citi’s focus on elevating “the talent that exists” among women and people of color is part of what led to Fraser’s consideration as CEO. As she put it to Time, “the biggest impact we can make as a bank is through our core business capabilities.” HAVE A Laugh

And that’s an important point to make when many are doubting our system's ability to address inequality. But Fraser has always been a problem-solver. According to The Financial Brand, she led Citi’s Corporate Strategy and Mergers & Acquisitions group through the 2008 financial crisis — a position enviable only for the paycheck. She moved people and assets around, freeing up smaller companies that could be sold to help make up for the losses everyone was experiencing at the time. In an interview with LinkedIn, Fraser also emphasized the importance of having a balanced life. One game-changer for her as a mother was realizing “that you can’t do everything at the level you are comfortable with.” Plus, leading a balanced life makes for “better leaders and far better professionals. You have to have the courage to say, ‘This is my path’ — and the organizations have to support it.” Clearly, this approach has taken her far. It’s taken Citi far as well. They’ve weathered the pandemic admirably, getting everybody home safe and working remotely when possible. Where others were struggling to stay afloat or make the transition, Fraser says Citi didn’t miss a beat. In fact, the pandemic has helped dramatically increase the rate of digital banking adoption by consumers and clients. Any time there’s a shakeup in a major Wall Street player, there’s potential for upheaval. Will Fraser’s appointment lead to turmoil? Or will she lead the industry into the future, addressing the needs of the public as she does? Only time will tell, but one thing is for certain: It won’t be business as usual. Handing out cards is now a well-loved Valentine’s Day tradition, but have you ever wondered why? It’s in the Cards Why Valentine’s Day Is the Ultimate Card Holiday There are legends that the originator of this holiday tradition was Saint Valentine himself. One story says that on the night before he was set to be executed, Valentine wrote a small letter to a jailer’s daughter. He ended the note with “Your Valentine.” It’s unknown whether that story is true, but to 18th century Europeans and Americans, it was inspiring! So inspiring, in fact, that the entire Valentine’s Day industry began to gain traction.

During the 1700s, it became fashionable to trade Valentine’s Day cards with a short poem or verse. The popularity of swapping cards only increased throughout the 1800s. Sometimes, people would go as far as to paint or draw spring-like images on the cards. Today, Valentine’s Day cards are an ingrained tradition, and now people can’t get enough of them!

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905 James Ave. NE • Jamestown, ND 58401 (701) 252-6190 • CraigHansonCPA.com Inside This Edition

Have tax problems? Unsure what to do? Before you do anything, call me to get a special report, "The 7 Secrets the IRS Doesn’t Want You to Know!” Call (701) 252-6190 to get your free copy today!

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Finding Value in Your Relationships

Did You Learn From the COVID-19 Economy?

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New Citi CEO Shakes Things Up What’s the Deal With Valentine’s Day Cards?

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Lockdown Ads: Have You Seen These Ones?

Well, That Was Fast Advertising in the Time of COVID-19

Almost a year ago, most of the United States entered a period of lockdown in an attempt to thwart the spread of COVID-19. For marketers facing an economic crisis, this presented a conundrum unlike any they’d seen before. On the one hand, it was likely that spending would drop, although the increase in nationwide unemployment payouts helped mitigate that. On the other hand, they now had a “captive audience” like never before, with people streaming movies and television from home at a record rate. The lifestyles of those consumers had changed dramatically — could advertisers meet the challenge?

in several large American cities, but it had yet to crack the national market. As their ads put it, they wanted to be a coast-to-coast solution for new car sales, and our newly confined circumstances meant many more Americans were interested in Carvana than before. The company dumped money into its streaming ads, and the results speak for themselves: Bottoming at $30 million in March, their stock was valued at more than $200 million just a few months later. Some advertisers settled for merely reflecting the new norms of remote life and work in their advertising, with mixed results. If we weren’t tired of the Zoom-focused Progressive ads featuring Flo and cohorts back in spring 2020, we’ve surely grown tired of their hard-to-parse antics by now. No matter who’s doing the advertising, studies done as early as April 2020 found that many consumers were tired

of being reminded of the pandemic every time they sat down to watch TV. With national anxiety at an all- time high and mental illness spiking during the pandemic, that’s no surprise. People didn’t want to face the reality of the virus every 10 minutes due to advertisements. On the other hand, some businesses were just hampered by circumstance. Carnival and Norwegian Cruise lines both ran aground with their streaming ads focused on spring and summer getaways. These seemed especially tone-deaf given that cruise ships made headlines at the time as vectors for massive COVID-19 spread. But the true loser of 2020 advertising was Corona beer. The poor beverage company never stood a chance.

They certainly tried.

For retailer Carvana, the virus was almost a boon. The Tempe, Arizona- based auto seller had already gained fame for its “car vending machines”

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