Scholl & Company, LLP - March 2022

Scholl & Company, LLP - March 2022

YOUR FINANCIAL SUCCESS

MARCH 2022

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We are living in the golden age of information, and sometimes that information isn’t factual, so we have to discern between the truth and internet fiction. Yet, I believe there has never been a better time to learn something new — regardless of what it is. I’m a firm believer that continuing your education shouldn’t be linear; learn about what interests you and grow from there. One of the greatest ways to do this is to read. I’m an avid reader. Most of my reading is done through Audible, which allows me to listen to books I want to read as I travel or drive. At any given moment, I could be listening to a spy novel by Vince Flynn or a business book designed to offer a new perspective. Of the many books I’ve read, I always go back to Zig Ziglar’s “See You At The Top.” It’s an old book, but it’s a classic, filled with some great nuggets. If you haven’t read it, I recommend you do. Most of Ziglar’s work revolves around sales, but life is about sales. At any given time, we’re trying to persuade someone, whether that’s to go on a date with us or to convince our child to put on a jacket outside. Ziglar provides context for how to be more proactive in doing so. Not only that, “See You At The Top” does a great job of casting failure as a motivator. You have to look at it through a prism, rather than as black or white. Consider it like success in sports. Even those in the Baseball Hall of Fame only connected with the ball once every four times they went up to the plate. On paper, that’s a failure; in reality, they are some of the greatest hitters to ever play the game. Their success is not constant, and neither is yours. BE A BETTER READER TO BE A GREAT LEADER

Sometimes I need that lesson and the many others I have found in “See You At The Top.” It has been one of the most pivotal books of my career, but I’ve also enjoyed many others. For instance, I recommend reading “Bossypants.” It’s a collection of essays written by comedian and writer Tina Fey as she reflects on her life and becoming who she is today. It was a fun read! And as I mentioned, I often enjoy fiction, too. It’s safe to say I’m pretty eclectic when it comes to books. As entrepreneurs, that is what we should be doing. We should want to read, and we should do so frequently. I believe tremendous personal growth happens when you commit to reading and learning, but as a business owner, this has to be a personal requirement. In the accounting world, doing so is also a professional requirement. In order to keep our CPA license, we are required to complete 40 hours of continuing education every year, but I believe this is way too low! We should be reading and learning more than the standard 40 hours if we want to continue to best serve our clients. We commit to doing far more than 40 hours at Scholl & Company, and I believe we are better for it. This spring, I hope you heed this advice. If it’s been a while since you last read something, try one of my suggestions from above. Or, visit Goodreads.com to peruse genres that interest you. Whatever it is you choose, the only thing you have to do is to keep reading. Your business and personal mindset will be far better for doing so.

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 .

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Received a Tax Audit Letter? Don’t Panic — Call Us Instead

It’s enough to induce panic. A letter from the IRS or California Franchise Tax Board (FTB) alerting you to an audit provides one of those stomach-dropping moments we all fear. It’s easy to get wrapped up in the panic of the moment — so much so that you may want to wrap up this process as quickly as possible. Stop! First, take a deep breath. When you’re a client with our company, you have Scholl & Company, a team of accounting, IRS, and auditing experts who can guide you through this process, ensuring you don’t have to go at this alone. Keep this guide on hand in case you need a reminder about your rights and proper procedures when facing an audit. Never Trust Your Auditor The IRS and FTB’s audit process includes dozens of very innocent sounding questions; however, many of these can be intrusive. They will ask for a litany of paperwork, including all your bank, investment, and credit card statements. This is all a normal part of the process, but it is a very deliberate and calculated move. IRS and FTB agents are trained to determine the accuracy of your tax return, and in doing so, they have a set of questions and tasks that are intentionally difficult, invasive, and exhaustive. In fact, auditors are trained to obtain information that is not required by law or pertinent to the case they are reviewing. They will leave no stone unturned until they find what they are looking for, so it’s no wonder a business leader or citizen feels thoroughly violated after an audit! Call a Trusted Expert After you calm down from initially reading that heart-pounding letter, your next step HAS TO BE to call Scholl & Company! As such, you should never work directly with the audit agency or agent yourself. Because of their training and tactics, your answers to their seemingly simple questions can seal your fate. In our experience, many taxpayers who manage an IRS audit themselves have a substantial IRS bill requiring thousands of dollars. Our clients generally NEVER meet or speak with the IRS. We handle everything for you, including the paperwork, which allows you to devote your energy to your business and the little free time you do get with your family. More importantly,

we will be able to appropriately answer all the questions they offer. Simply forward your audit letter to us, and we will handle the rest. Know Your Rights You may be shocked to learn of some of the tricks and tactics auditors use. That’s what they are banking on! They get away with this because most people fear them and don’t know their rights. But you do have rights! No matter what tax situation you are facing, you have a preset “Bill of Rights,” as outlined by the IRS. This might seem like an oxymoron, but in addition to understanding an auditor’s role, it’s vital that you know about your rights with the IRS.

1. The Right to Be Informed

2. The Right to Quality Service

3. The Right to Pay No More Than the Correct Amount of Tax

4. The Right to Challenge the IRS’s Position and Be Heard

5. The Right to Appeal an IRS Decision in an Independent Forum

6. The Right to Finality

7. The Right to Privacy

8. The Right to Confidentiality

9. The Right to Retain Representation

10. The Right to a Fair and Just Tax System

These are rights our team knows and wholeheartedly follows. Our goal is to ensure the IRS keeps up their end of the bargain and follows these rights as well. Additionally, we work diligently to create an experience that is fair and honest and protects you, your family, and your business. Don’t panic when you receive a letter warning you of an audit. Instead, call Scholl & Company, and we’ll get to work for you.

We know the law. We know your rights. And we can help.

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JEWELRY FOR YOUR HOME MEET THE MAN BEHIND DEL REY SUPPLY

If diamonds really are a girl’s best friend, then the right faucet must be your home’s best friend.

Del Rey Supply began in 1960 and is credited with having plumbed most of the homes in the Monterey and Salinas peninsulas. The company was a local home center, selling everything from plumbing materials to wallpaper. When Ed bought it in 2001, he had big plans to revitalize and refocus Del Rey Supply. In 2005, the company underwent a partial remodel to turn half of their 5,000-square-foot space into a showroom. The rest of the showroom was updated a few years later. Today, shoppers at Del Rey Supply can visualize the fine plumbing goods they offer, examining how they feel and look in the showroom.

At least, that’s what Ed Deberry, owner of Del Rey Supply, believes after nearly 50 years in the plumbing supply industry. Deberry and his family own and operate Del Rey Supply in Seaside, California, providing luxurious, one-of-a- kind kitchen and bath sinks, faucets, hardware, tubs, shower fixtures, toilets, and more. Each product the company sells is built to last and perfectly complements any home.

“We call it fine jewelry for your home,” Ed says. “That’s really what it is.”

But those upgrades, coupled with Ed's expertise, didn’t promise smooth sailing for Del Rey Supply.

Growing up in Sacramento, California, Ed followed in his father’s footsteps and became a manufacturing sales representative in the plumbing industry. For more than 30 years, Ed traveled the nation representing Northern California to plumbing showrooms, contractors, builders, and resellers. All along the way, Ed developed great knowledge and an appreciation for the beauty of home plumbing. After so many years of traveling, Ed was looking for an opportunity to use his expertise in a capacity that would allow him to stay closer to home. That’s when a local legend went up for sale.

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Supply began working with Scholl & Company after our firm acquired another financial firm that Del Rey Supply had hired. From streamlining a complicated digital process to providing Del Rey Supply with the financial expertise they needed to navigate a new competitor in the area, Scholl & Company was proud to help Del Rey Supply grow into the local stronghold it is today.

“We were really rolling along, and then 2008 hit — that wonderful little recession we had,” Ed recalls. “That set us back a bit. We had [a national competitor] come into Seaside, and they took half of our business. That was a wake-up call for us.”

“Bret’s got a lot of business knowledge, and obviously he’s helped us tremendously with our tax situation,” Ed says, adding that the national competitor ended up being “their own worst enemy.” After dealing with bad service, many of the customers Del Rey Supply lost came back for the premier materials, quality service, and expertise you simply cannot put a price tag on.

Not to be deterred, the Deberrys and their staff were determined to succeed. Around that same time, Del Rey

“Our focus is customer service, and we really pride ourselves on taking care of our customers,” Ed says.

That focus is continuing to the next generation. Ed is partially retired now, and his son is poised to take on the family business. Between him and Carlos, who manages the showroom and has been with Ed for 21 years, Del Rey Supply is prepared to grow — while furnishing homes with the elegant jewelry every homeowner enjoys.

“OUR FOCUS IS CUSTOMER SERVICE, AND WE REALLY PRIDE OURSELVES ON TAKING CARE OF OUR CUSTOMERS.”

“We have picked up over half a dozen things over the years [from Del Rey Supply],” Bret says. “You can’t find them elsewhere. It’s the stuff that’s going to outlive me! It really just makes a statement.”

To learn more about Del Rey Supply online, visit DelReySupply.com.

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Self-Empowering Motivation Is a ‘Shortcut’

2 Scientific Methods to Stop Forgetting

HAVE A Laugh Researchers at Nagoya University in Japan have found that mastery-approach goals (i.e., developing your own competence) enhance memory of newly learned material, whereas performance-approach goals (i.e., comparing yourself to others) can create “tenuous connections” in memory. The authors concluded the study by saying, “motivation factors can influence inhibition and forgetting.” Why do we supplement our diets with omega-3s and do puzzle games to strengthen the health of our brains? The most important reason is to prevent memory loss. However, in order to enhance our memory and lessen the instances of forgetting both big and little things, these brain-based strategies can help! No. 1: Aim for mastery, not relative performance. When losing weight, some people find it helpful to stop checking Facebook or Instagram to prevent self- comparisons. Similarly, your brain forgets what’s important when you compare your performance to others.

So, it might be time to ask yourself: What motivates you to learn new things, and how can you change your approach? No. 2: Ask why. A 2016 study from the European Journal of Social Psychology found that thinking more abstractly can actually reduce memory issues. The study examined how levels of “construal” (examination and interpretation) can affect memory, and their results suggested that “abstract thinking can eliminate retrieval-induced forgetting because of relational processing, demonstrating the roles of the levels of construal on memory inhibition.” In other words, if you know the “how” and “why” behind things you intend to remember, you’ll be more likely to remember them. If you’ve been forgetful lately, maybe it’s time to rethink how you approach new information — according to researchers, a new source of motivation or critical thinking mindset could make all the difference!

Exploding Chocolate! The Assassination Plot You've Never Heard Of

Everyone has heard the phrase “death by chocolate,” but there’s at least one person in history who took the saying seriously: Adolf Hitler.

According to Smithsonian Magazine, Hitler and his German forces once plotted to assassinate British Prime Minister Winston Churchill by covering a small bomb with dark chocolate, wrapping it in black and gold paper, and slipping it into a snack basket in the British War Cabinet’s dining room. When the prime minister unwrapped the bar, he’d have just seven seconds before the “treat” detonated and potentially turned the tide of World War II. Fortunately, the British intelligence agency MI5 caught wind of the German plot and stopped it. More than 60 years later, the rest of the world found out about it when a letter detailing the plot went public.

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Inside This Edition

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Leaders Are Readers

2. 3.

We’re Your Source for an Audit

Del Rey Supply Outfits Your Home With Luxury Are You Forgetful Lately? The Failed Chocolate Assassination Make Sales From the Heart Without Draining Yourself

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How to Make Sales From the Heart Sell Happiness Without Draining Yourself

Make conscious decisions to trade your money, time, and effort for happiness — and nothing less. That means cutting out unhealthy decisions that might’ve been useful coping mechanisms at one point of your life but are no longer necessary to help you thrive. Selling happiness starts with possibility. Even when you and your employees don’t feel 100%, remember that happiness starts with a common truth: Anything is possible. When you’re happy, it can feel like the world is full of opportunities. That’s something you want to share with your customers, whether through friendly one-on- one interactions or through your marketing campaigns. Give customers happiness, and give yourself purpose. When a business sells happiness, it doesn’t always directly convert into happiness for anyone else. Maybe they’re not in need of your service or product and simply aren’t receiving your messaging the same way they will later. However, when you shift your focus from selling to providing people with a sense of happiness and/or peace, you might surprise yourself with how meaningful and fulfilling your company’s content, marketing, and overall mission will feel for you and your team. Happiness can’t be bought, but it can be sold effectively to make the world a better place. We hope these tips will help make you and your team become more fulfilled marketers!

In life, you might feel pressured to smile even when you’re unhappy, and the same is true when trying to please customers in your business. As the best marketers know, happiness can’t be bought, but it can be sold. Selling happiness and fulfillment is something companies do every day — and for genuine, great reasons, too. But how do marketers display those positive feelings all the time? How do you remain an effective leader, fulfilled business owner, and ambitious individual when impostor syndrome strikes? Don’t ‘trade’ your happiness every time. It’s hard to approach sales or marketing with a generous attitude if you’re already giving away a lot in your personal life. Do you ever exchange your money for temporary happiness, like a car that you can barely afford? What about spending too much time on certain tasks you dislike or with a group of friends you don’t really care for?

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