Scholl & Company LLP - January 2021

Scholl & Company LLP - January 2021

YOUR FINANCIAL SUCCESS

JANUARY 2021

SCHOLLCOMPANY.COM

831-758-5966

A BETTER WAY TO DO BUSINESS Why Scholl & Company Has Been a Family Since the Very Beginning

"I worked for other firms before starting Scholl & Company, and in addition to getting my feet wet in the business, I primarily learned what I did not want to do."

One of the most important ways we establish this atmosphere is by getting our new employees into the mix as soon as possible. In a lot of large accounting firms, many of their new employees don’t become client-facing for 2–3 years. It never made sense to me to hire someone for their talent and expertise, only to shutter them in because they don’t have enough tenure. We had a client once learn this very lesson. One of their newest assistant managers noticed a small but ultimately profitable adjustment they could make. They simply had to add another five cents to their prices, and they could make huge dividends on the already staggering $4 million in transactions they had been making. That new perspective was huge for this client! But if they had been following common practices laid out by other accounting firms, that discovery would have never been made. For us, compliance is key and important. We will always put in the hard work to ensure everything is current and accurate, but that’s just one component of the work we do. We step inside our clients’ problems and look at them as a whole. We don’t just see the issues that come up; we chat with them about their challenges and look for context.

My first job was at a large national accounting firm, where the employees were just cogs in the wheel and our clients were revenue sources. We just showed up, did our work, and went home, with little thought to our clients’ issues. I quickly left that job for a smaller, more regional firm, and while the connections we made as a smaller team were greater than any connection I ever made at the large firm, I still wasn’t sure if it was enough for me. I knew I could do it better. So, when I started Scholl & Company in 1985, that’s just what I did. I decided our team was as important as the clients we served, and vice versa. I wanted to create a family atmosphere, one that would promote partnerships with our clients and our employees. I didn’t want to be just another accounting firm.

Where it all started! Owner Bret Scholl on February 6th, 1961.

We encourage new ideas, and we work together to support our clients’ goals.

As you prepare for the new year, there may be some unexpected challenges coming your way. (We all learned this valuable lesson in 2020.) My advice to you is to listen. Look at things from a fresh perspective and support all ideas that come into your business. You never know what kind of small change is going to make a big difference. Finding the value in our newest employees has been one of the best decisions we have made. It’s created a company that feels more like family, and we’ve created hundreds of partnerships with small- business owners across the U.S. We’re proud to be a partner in your network, and we’re happy to do it together.

BUSINESS IS GREAT AND WE'RE LOOKING FOR MORE. We hope that you will keep us in mind if the opportunity arises to refer family, friends, colleagues, and neighbors. Thank you for your continued support.

Happy New Year!

1 SchollCompany.com

Let That Fresh Air Fuel You 4 Tips to Make Getting Outside Easier

2. Use mornings effectively. Waking up and getting the day started can be hard. But studies have shown that natural light helps decrease your melatonin production, which means you feel ready to face the day sooner. So, set yourself a second alarm to head outside and take a quick walk around the block just after waking. Don’t even wash your face or grab coffee. Just get out there. 3. Take your work outside. If you’re working from home, take some work outdoors. Phone and virtual meetings are a great outdoor option, especially if you’ll just be an active listener and aren’t required to do any work simultaneously. Attach a note to your meeting reminders to get yourself set up outside five minutes before you start. 4. Create a schedule. It might feel strange to set reminders throughout the day to step outside, but you easily get wrapped up in activities and overlook breaks, and these reminders are exactly what you need. Start with 10-minute blocks three times a day. If you stick to them, soon you won’t need a schedule to get outside anymore. Winter weather may be cold, but even when you’re bundled up under a jacket and scarf, just 5–10 minutes outside can do wonders for your mood and energy for hours

Hunkering down and waiting for the dark and chilly winter season to pass sounds pretty nice. But the reality is, if we deprive ourselves of time outside, we do ourselves a big disservice both mentally and physically. Staying indoors all day affects your energy and mood, which makes it hard to get anything done, so here are four easy tips to make it easier to get a little fresh air. 1. Make it a priority. Getting outside means making the conscious effort to do so. If you want to reap its benefits, you have to decide to make it a priority in your day-to- day schedule. If you make the act important to you, you have more motivation to actually do it.

Is the iPod Dead?

For Apple, selling iPods brings in additional revenue, but there’s an even bigger perk. As Patel puts it, giving a kid an iPod “brings them into the Apple ecosystem, thus making them more likely to buy an iPhone when they are ready for an upgrade.” With a net worth of more than $2 trillion, Apple can afford to play the long game. If you’re interested in buying an iPod for your child but you’re not sold on the $199 price tag, we can’t blame you. Luckily, there are plenty of secondhand and refurbished iPods floating around the internet at deeply discounted prices. BackMarket.com sells refurbished Nanos, Classics, and Touches with a 12-month warranty for as low as $40. Whether you’re shopping for your kids or just want to kick it old school, that’s a great place to start.

independence of listening to music on the go without exposing them to everything a smartphone has to offer. According to a Medium post by Yash Patel, the Apple iPod Touch has stuck around to serve this new audience because the pairing benefits both parents and Apple. There is a plethora of pluses for parents:

Media outlets have been declaring the iPod "over" for years. In 2017, a USA Today article blared, "Say goodbye to the iPod era,” and a 2018 Reddit thread asked, "Why are iPods still a thing?" But, despite that lack of consumer confidence, Apple continues to sell brand-new Apple iPod Touches on its website for $199 and up, and it just updated them in 2019 — why? As it turns out, the iPod is now a tool almost exclusively for kids. When the first iPod MP3 player was released in 2001, adults went nuts for it, but these days, we can listen to music on our versatile smartphones, which have supplanted the iPod for most people. Young children, however, don’t necessarily have the smartphone option — and many parents don’t want them to.

• iPods have music and games to keep kids busy.

• Kids can stay in touch with their families using FaceTime and iMessage on an iPod, but they can’t call or text (as there’s no service plan). • A $199 iPod isn’t as big of a loss as its more expensive counterpart, the iPhone, if your toddler drops it in the toilet.

An iPod has become a gateway device: It’s the perfect way to give a kid the

2

831-758-5966

BE A BETTER LEADER 4 Leadership Books You Need to Read

in the genomics industry. The book teaches leaders how to empower others. Great leadership takes grit, thick skin, and compassion, and “Unleashed” offers advice from top-performing organizations on how to best achieve all three.

For leaders at all levels in all types of business, 2020 was a tough year. Those businesses that managed to not only survive but also thrive all have one big factor in common: good leadership. If you want to be a better leader for your team in 2021, here are the latest leadership books you should add to your reading list.

‘Personality Isn’t Permanent: Break Free From Self-Limiting Beliefs and Rewrite Your Story’ by Benjamin Hardy

‘Friday Forward: Inspiration and Motivation to End Your Week Stronger Than It Started’ by Robert Glazer Glazer is an entrepreneur and bestselling author who has taken 52 of the most impactful stories from his inspirational newsletter that goes out to more than 100,000 readers and put them in one convenient book. These stories of struggling entrepreneurs who turned things around can give you the push you need to make an impact in your own circles and end your work weeks stronger than they started.

Organizational psychologist Benjamin Hardy makes a fascinating argument for why your current personality isn’t the one that’s most important. His new book pushes readers to consider who they want their future self to be, and his ideas aren’t theoretical — they’re full of proven ways to change your priorities, break habits, and use your environment to make you a better version of yourself.

‘Honest to Greatness: How Today's Greatest Leaders Use Brutal Honesty to Achieve Massive Success’ by Peter Kozodoy

The turmoil of 2020 has pushed brands to reconsider how they appeal to their customers. Many are walking away from deceitful promises and aiming for radical honesty and authenticity, instead. In his new book, Kozodoy examines how this revolution came to be and why it’s working. His guide teaches leaders how they can embrace these qualities to make their businesses better.

‘Unleashed: The Unapologetic Leader's Guide to Empowering Everyone Around You’ by Frances Frei and Anne Morriss

Frei is one of the world’s foremost authorities on leadership. In her new book, she’s teamed up with Anne Morriss, a leader

HAVE A Laugh It was 1890 in Limón, Costa Rica, and Minor Cooper Keith was the “Banana King.” Keith traveled to Central America to build railroads, but when he planted 800,000 acres of bananas to feed his workers, he ended up in the banana business, too. In 1899, he co-founded United Fruit and set his sights on the U.S. market. Bananas: The Fastest-Traveling Fruit

Two secrets helped Keith’s bananas cross the 7,175 miles from Limón to Seattle in under seven days. The first was the railroad, which United Fruit operated. Railroad cars sped the bananas from their plantations to the Port of Limón. There, they were loaded onto the first-ever refrigerated ships.

Those ships steamed north, where their precious cargo was unloaded, stacked into yet more United Fruit railroad cars, and dispatched across the U.S. This mad scramble of plantation workers, conductors, and captains brought us the plethora of bananas we have today.

3 SchollCompany.com

SOLVING YOUR TAX PUZZLES MEET OUR TAX EXPERT, MICHAEL ARENSDORF!

included passing four rigorous exams within 18 months.

It’s impressive to pass four exams in 18 months, but even more astounding when you consider the fact that the CPA exams only have a pass rate of 50%. Needless to say, we’re very lucky to have Michael — and our founder and fellow CPA, Bret Scholl — on our team!

Becoming a CPA, as opposed to serving as a regular accountant, allows Michael to be of greater assistance

While most people dread doing taxes, our tax manager, Michael Arensdorf, loves solving the puzzles that can come with taxes. One day, he may need to learn about the complexities of North Carolina’s state income tax, while the next day, he’s calling Oregon’s tax department to clarify a nuanced law. It changes day to day, but Michael says that is his favorite part about the work he does every day. “I’m a problem-solver,” Michael says. “I’ve always liked finding the answer to the problem a client comes in with. It’s very unique, and it’s not monotonous … I’m never running out of new problems!” Michael grew up here in Salinas and earned his degree at Chico State University. Nearly two years ago, Michael became a certified public accountant (CPA), which

Michael (right), with brothers Danny and Jeff and niece Charlotte.

4

831-758-5966

to his clients. He’s given more legal abilities when it comes to auditing, and he is held to a very high standard in his field. Michael has experience with larger firms, and he joined our team less than two years ago. While he gained knowledge at the larger firm he worked at, Michael says working in a smaller team structure makes the work he does every day much more seamless. He’s often coordinating phone calls and research with our fellow staff members to ensure he’s correctly answering clients’ complex questions and that he gives the best advice to help them in the future. This means he has to accurately communicate issues and possible solutions to keep everyone on the team — our clients included — focused on the same goals.

“We have a great support staff here,” Michael says. “It really becomes a team effort.”

With Scholl & Company’s emphasis on continued education, Michael says he is always working to improve his craft. As he learns more about tax laws and changes and continues to guide each client through their complex tax questions, Michael says he’s reminded that this is the perfect job for him.

Michael and his niece Charlotte.

I LIKE TO SIMPLIFY TAXES FOR PEOPLE. I LIKE TO MAKE THEIR LIVES BETTER AND EASIER THAN WHAT THEY CAME IN WITH … FOR ME TO SIMPLIFY IT AND GET THEM OUT OF THAT SITUATION, IT’S VERY REWARDING.

“I like to simplify taxes for people,” Michaels says. “I like to make their lives better and easier than what they came in with. Sometimes they have horrible issues. For me to simplify it and get them out of that situation, it’s very rewarding.” As for the current state of tax law, Michael has one piece of advice: Don’t panic! While the results of November’s election could mean changes to taxes, Michael advises clients to ignore the noise. “Just be patient,” Michael says. “Actual tax changes are still up in the air of what will and what could happen. Everyone reads clickbait articles that scare them. Just wait until we have some official changes.” When — and if — that does happen, Michael says he is ready, willing, and prepared to help our clients navigate it! Our entire team will be supporting him as he does this, too! We would expect nothing less from our resident tax expert who loves to solve problems.

If you have a tax law question or know a fellow business owner who does, give our team a call today.

5 SchollCompany.com

3 WAYS YOU CAN GET A JUMP-START ON 2021

As a result, we cannot predict what is going to happen, but we are actively paying attention to potential changes. Our team is continually doing research and education to familiarize ourselves with potential outcomes. Our goal is to ensure nothing sneaks up on you, so let us do the worrying. We’ll make sure you are prepared if any changes happen.

The start of a new year always feels like a new beginning. The past year is now behind us, and we can focus on new goals. The start of 2021 is a great opportunity to set your sights on some of your biggest dreams and do some long- term planning to achieve them. Our team at Scholl & Company will be here to guide you through the biggest wins and obstacles of 2021. We know that all starts with giving you the tools you need to succeed. As you get started on your plans for 2021, keep these three important things in mind for ultimate success.

Prep for tax season.

Right after “the most wonderful time of the year” comes the most stressful time of the year. Tax season is just weeks away, and whether you have a tax deadline of March 15 or April 15, you can begin preparing now to decrease your tax burden. Start collecting key information and documents on business expenses from the past year. The details of purchases that might seem small — like office supplies or a new printer purchase — may not be at the forefront of your mind as deadlines approach. Yet, these can be significant claims to make on your taxes each year. If you start to collect these documents now, you will find yourself more organized and prepared for a successful tax season. (Note: We can help you, too!)

Don’t worry about tax changes.

Speaking of taxes, stop stressing. While some tax changes are anticipated due to the results of the November election, we only know what this tax season will look like. That’s where your focus needs to be right now. We have no way of knowing what new changes will look like yet.

Mess around with the numbers.

Some of the best results come from experimenting. Our Profit Improvement Tool is designed to allow you to input a few of your key metrics and play around with what your outlook would be if things changed for better or worse. This handy Excel document is available on our website through your customer login portal, and it’s the perfect forecasting tool for you and your business managers to use for better planning. It just may spark an idea or two, and you can be better prepared for various outcomes. As we learned in 2020, we have to be prepared for everything . Whatever your goals are, we have a team of experts ready to answer any questions you have. Contact Scholl & Company today and chat with experienced leaders who can guide you to success. Good luck this year! We’re supporting you.

6

831-758-5966

2020 Wants You to Think Life Isn’t Fair

But in 2021, You Can Make It Fair

can decide to not keep every marble from the business for yourself and instead use some of your gains to help others. You can build a culture in your company that doesn’t allow oppression. You can create an environment where there's no reason to say, "That's not fair!" Many entrepreneurs are focused on what’s in it for them, and as an entrepreneur, you absolutely should be rewarded for your hard work and risk. But you don’t have to be rewarded while someone else gets punished. You don’t have to make them feel like their life is “just unfair.”

“That’s not fair” — it’s a phrase everyone hears and says far too often. And, it’s just as often followed by the retort, “Well, life’s not fair.” The concept of “fair” is very misguided, and the year 2020 took it to a whole new level. Nowadays, saying “life isn’t fair” feels like the best scapegoat for everything we’ve been through this year. But fairness is often like luck: It’s better to be fair or have a little luck on your side, but most of the time, how fair life is or how much luck you have is a product of your own creation. In life and especially in business, human beings get stepped on and pushed down by others. That’s just in humanity’s nature, as it always has been. We get upset with people who aren’t treating us fairly, and when we don’t get our way, we throw a fit. And then, the next time we get any power of our own, we oppress someone else, who then reacts the same way. You might think you’ve never oppressed anyone, but everyone has done it in some way or another, even if they may not realize it. However, there’s a bright side to this topic, and it’s that entrepreneurs always have an opportunity to make their world a better place. Every morning when you wake up, you can decide what kind of boss you want to be and what kind of business you want. You can run one filled with concern for others that goes beyond enriching just your own life. You

As you head into operating your business in 2021, it’s crucial to remember two things:

1. Culture trumps strategy every day of the week.

2. Happy employees make happy customers, and happy customers make a happy bottom line.

If you focus on the people in your business this year, you’ll find all your marketing efforts and business dealings to be fairer, no matter how unfair life has seemed lately. Because the reality is that life can always be as fair as we decide to make it.

7 SchollCompany.com

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

18275 Meadow Song Way Corral de Tierra, CA 93908 831-758-5966 schollcompany.com

Inside This Edition

1.

Why We Form a Partnership With You

2.

Give Yourself the Boost of Getting Outside Is the iPod Dead? Meet the Man Answering Your Biggest Tax Questions! 2021 Is Here! Do These 3 Essential Tasks to Get Ahead

4.

6.

8.

Business Budgeting for 2021

Business Budgeting for 2021 You Can Still Plan Around Unpredictability

change their marketing focus and invest differently, so you have to be willing to adapt your budget, too. As you set sales goals, be aware of your margins and get flexible with the way you’re achieving them if you want to improve them. Also take into account new expenses you may have in response to 2020, like staffing changes and Paycheck Protection Program loans. Take stock of what’s new and different for your business this year and include it in your budget plan. Remember the essentials. Even though 2020 was a wild ride, you can’t throw all your best practices out the window. Thinking ahead about your budget will always be essential, no matter where your business has landed. If sales are strong, drive profits while you can to build your reserves. Modify your products or services to align with customer behavior. Keep your accounts receivable clean. Don’t use credit cards to finance your business. Pay close attention to your balance sheet to keep a handle on debt. Cultivate an ongoing relationship with your banker. If you find a reliable baseline, are willing to be flexible and realistic, and can recalibrate your plans on the go, you can budget your way to a much better year.

This is the time of year when businesses would usually be looking at their budget and planning for the coming year. But COVID-19 has made the future entirely unpredictable, which makes properly planning your budget difficult. But all is not lost — there are some basic budgeting tactics you can implement to face 2021 with confidence.

Create a forecast. If you’re not entirely confident in your ability to forecast sales for 2021, you’re not alone. But you do still have options. If 2020 went great, perhaps try setting your sights up 10% from last year. If you want to play it safe, keep your forecast on par with 2020. If even that doesn’t feel reliable, then jump back to 2019 and use it as a base for creating your budget. You can ramp up 10% or 20% from there. Don’t just forecast this year blindly — use >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8

schollcompany.com

Made with FlippingBook Online newsletter