The Plight of the Business Owner

Frank has been thinking about something for quite awhile, but has been somewhat reluctant to reduce it to writing for fear of offending. It is a subject that can be misunderstood, but is a subject that affects us all. It is a subject of political pundits, a subject easily exaggerated.

As most of the readers of this blog are aware, Frank is an accountant, the founder and owner of a CPA firm in the Nashville suburb of Pleasant View, TN. The firm has passed its five year anniversary and recently opened a second office in Kingston Springs, TN, another suburb of Nashville. The firm has enjoyed growing revenues and profits since its birth in September, 2005.

One of the niches of the firm is to assist businesses with their accounting, payroll and tax compliance issues. Contrary to what some would have you believe, accountants don't lock up their offices on April 16th and come back in mid-December to prepare for the following tax season. If only it were that simple. But I digress. In any event, Frank and his team have learned to work with small to medium sized businesses and other entities and have made a decent business for themselves in the process.

One thing that Frank has observed, is that the primary business owners have one thing in common...they have a burning passion for what they're doing. Whether it be the holder of a professional license such as a doctor, attorney, or heaven forbid, an accountant; or someone who has a gift or talent such as auto repair, florist or graphic artist; or perhaps they are the modern day warriors of the business world and just have a drive to make it on their own and want to birth a business, invest not only financial capital but sweat equity in the form of blood, sweat and tears, to see the business grow and flourish.

Frank has developed the habit of trying to learn as much about a business as he can before and during the time he works with a business client. The easiest way to do this is to talk with the owner or primary contact of the business. It never ceases to amaze Frank how these individuals will literally light up when talking about their business, or their business idea. They get excited, there's a twinkle in their eyes and they want everyone around to share in that excitement. Not so long ago, Frank and his team toured the facilities of one of their clients that sold hay. The owner, a wonderful guy, would get so excited about explaining the different types of hay, the different grades, the different smells. More that once, he would extend a handful of the dusty harvest, and exclaim, "smell that!...Isn't that sweet?"

All this is leading somewhere, just hang on. All these businesses that are successful have that fire, that burn, that passion in common. Those that don't have this passion, well, they don't last. Maybe they've started a business with the misconception that it will be fun; or perhaps the owners think they can work nine-to-five and leave early on Friday; or believe they can manage and grow the business by proxy or remote control. These cases, sadly, don't survive.

Its hard enough to run and grow a business when the passion is there. There are other forces at work. Competition. Technology and process changes. Natural disasters. The economy. Increased costs and reduced revenues. A whole gamut of issues that are, at a minimum, troublesome to the business owner. Another issue that has seemed to crop up more often for business owners is increasing rules and regulations and taxes and fees imposed by federal, state and local governments.

In most cases, these government intrusions can be traced back to one situation...all of these entities are revenue-starved. Their citizenry expects a certain degree of service, with competent and trained personnel such as emergency responders, teachers, etc., but at the same time, this same citizenry doesn't want their taxes raised.

At this point, Frank would like to point out that he doesn't believe these government intrusions and increased regulations and taxes are some far-flung conspiracy to turn the current economy to a socialism model. Even though these rules and fees have been increasing of late, Frank holds true to believing the drive is revenue, not government takeover.



Early in the recession, there was a late-night passage of an unemployment tax increase in the state of Tennessee. This one was actually lobbied for by the TN Chamber of Commerce and the National Federation of Independent Businesseses, two supposed advocacy groups for small businesses. As unemployment tax is a pure expense of businesses, the "advocacy" of these groups was, well, not to welcome by the business community.

Other changes have been increased reporting and compliance requirements. The recently-signed health care reform requires all businesses, regardless of size, to report any cumulative transactions with any individual or business in excess of $600.00 per year. What does this mean, you ask? If I, as an independent business purchase $600.00 or more in goods and services from any individual or business, I have to give that individual or business a Form 1099 at the end of the year and report those transactions to the IRS. To show how cumbersome this is, for example, if my firm purchases $600.00 or more worth of copy paper from Office Depot in a year's time, according to this regulation, I must give Office Depot a 1099-MISC and report it to the IRS.

There are so many components of the health care reform that will affect businesses, they are too numerous to list here. From reporting requirements, to providing health insurance for their employees, to increased costs of running a business. All, in an effort to raise the needed revenue to support the health care reform.

All this is coming at the business owner at a time when he/she is trying to survive the effects of the ongoing recession. All that most small business owners want to do is utilize their given talents and passions in such a way that they can support their families and enjoy some degree of happiness in their lives. If the business is successful, they hire more employees; if not, the owners work longer hours. As the business grows in its success, the more profit it makes. The more profit, the more taxes it pays. When the business hires employees, those employees have income to be used for spending. More spending, more successful businesses, the more taxes to generate revenues for local, state and federal governments.
In the coming weeks, governments at all levels, federal, state and local, will begin the unenviable process of trying to balance the demand for government services with the limited revenues it receives. As federal stimulus monies begin to dry up, less monies are available to state and local officials. Those same states and locals will, by state constitutions and local charters or other organizing documents, be required to balance the budgets for the next fiscal year. They don't have the option of raising the "debt ceiling" or "deficit spending." In all likelihood, new or expanded sources of revenues is going to be needed over the next couple of years.
On behalf of those small to medium size businesses, I would like to respectfully request that the decision makers sitting in those budget meetings, give business owners a reprieve. We don't mind paying our fair share, or shouldering our share of the load. But, if you let the business owners do what they do, they will generate more profits which will lead to more revenue for the governments in the way of taxes and fees.

There used to be a Bridge...

Frank found himself with a couple extra hours on his hands yesterday. It had been somewhat of a mixed bag...some disappointments, some triumphs...not a bad day, but definitely not in the top ten for sure.

After finishing up with an on-site client, Frank went for a drive and found himself at what is now a state park in Montgomery County on State Highway 76. 29 years ago, it was a park he along with three others found themselves on a Sunday morning in mid-May, 1981.

May, 1981. Frank, part of two couples on the morning after their high school prom, found themselves at the park. The guys, still in their tuxedo pants, way-to-shiny rented shoes, and frilly shirts, were obviously less than comfortable. The ladies, on the other hand, somehow had managed to change from their prom dresses to something a little more casual. The two couples had managed to stay out all night, and as they drove the two-lane highway five or so miles from town, Frank remembered the light fog rising from the fields in the rural community of Port Royal, TN. As the couples walked down the steps to the covered bridge and crossed the river hand in hand, even yesterday, Frank remembered the lyrics of the song The Best of Times echoing in his head.

Our memories of yesterday will last a lifetime. We'll take the best, forget the rest and someday we'll find these are the best of times...

The four spent some time in the park that morning, crossing the wooden covered bridge to the other side of the Red River. Initials were carved in the wooden beams of the bridge, promises were made. It was a time of euphoria...everything was perfect, the future was bright, the world was their's for the taking...they were all indestructible. The two guys were planning to enter the medical field, the ladies would finish up their high school education in the coming years.

At this time, the country was breaking in new leadership; a guy from California had won the election and had upset the sitting President from Georgia. The country had endured the taking, holding and release of American hostages at its embassy in Iran. The economy, for all intents and purposes, was in the tank. Frank remembered liking the new guy in the White House. He was somewhat of a cowboy, but he didn't seem afraid to take a stand, especially on foreign policy and with Congress.

'Cos I'll take any risk to tie back the hands of time.

But, yesterday, as he stood on the banks of the Red River, he realized that 1981 may not have been the best of times. It seemed like it then, to four teenagers, two of them soon to leave the comfort of public education and grab the world by the tail, well, 'cause that's what they were destined to do. It seemed as though, as they crossed the bridge to the other side of the river, they were leaving the comfort of the known for the mystery of the future.

June, 2010 - Standing on the banks of the Red River, Frank looked out to where the covered bridge had once spanned the small river. All that remains are the stone supports. He could see the other side, but could not get there, not from where he stood. It seems the bridge was destroyed in 1998 by severe weather. Apparently, the powers that be decided it wasn't worth rebuilding.

Of the four present that morning, three have stayed in fairly close contact. Frank, discovered fairly early on that medicine was not the right path for him and ended up as a CPA; the other guy, well, he spent a stint in the Navy, and is now in upper management responsible for all physical plant, maintenance, renovation and construction at a major veteran's facility in Minnesota.

One of the young ladies, actually the date of Frank's friend, she and Frank ended up dating and were even engaged. The marriage didn't happen, but, they remain friends even today. She also became a CPA and, believe it or not, Frank and her will be working on a project together in the coming months to help victims of the recent flood. The other girl, Frank's companion that morning, well, they lost track of her after that summer. Don't really know what ever became of her.

As he stood there yesterday afternoon, looking at the remnant stone supports from his past, Frank realized now, many years later, that the euphoria he felt that morning was a feeling he sought for years to come. Over the next few years, he would find himself the victim of self-inflicted destructive behavior. Looking back, he asked himself, 'was he seeking to go back in time to those carefree days?' 'Seeking the over-confidence and carefree attitude of that morning?' 'Searching for the vast opportunities that lay before him that day, as he walked along from one side of that river to the other, on that wooden covered bridge?' The answer became all to clear yesterday afternoon.

Frank realized that during the five or so years to follow that Sunday morning in May, he was seeking to cross that bridge back to the other side. It was as though he was looking across the span to the cleanly-cut field on the other side, but with no way to get there. 1981 was only visible in his memory.

It became clear that even though that Sunday morning WAS a wonderful time, the best of times is actually the present. Frank has been successful, as have two of the other three. Frank realized, that even though it didn't seem right at the time, it WAS a good thing he didn't end up in the medical field. It WAS a good thing he and his buddy's date that morning so long ago didn't get married.

It IS a wonderful thing that he met and married Tammy, some five or so years later. It IS a wonderful thing that he has a loving wife and two beautiful daughters. It IS a wonderful thing that he has a wonderful support network of family and friends.

And someday we'll find these are the best of times....these are the best of times.

FAMILY RELIEF DAY IN PLEASANT VIEW

The Pleasant View Civitan Club asked me to publish the following information:

Pleasant View Civitan is hosting a FAMILY RELIEF DAY this coming Saturday at Balthrop Park. This is a FREE EVENT for everyone in the area. Our idea is to offer an afternoon of family fun, with food and entertainment at no cost to attendees. We will be accepting donated items for Flood Victims as well as monetary donations. Event starts at 11 a.m. and ends with our Movie In the Park, which begins a dusk. We are in need of organizations to donate a few hour of their time to help manage the concessions we will be serving. We are asking area businesses to set up "booths" and offer free products or services to those attending the event. This is an excellent opportunity for area businesses to showcase their services and to come together to help out those in need by offering a fun-filled afternoon.

A Season Ended - Another Begins

Just as Frank thought he was catching his breath, another issue arises.

Tax season ended on April 15th without a lot of fanfare...it was a good season for Frank, albeit, somewhat strange at the same time. Frank and his team were able to process a record number of returns, and the procedures put in place seemed to make the process smoother and more routine...well, as routine as tax season can be.
There were no major hang ups, yet the scenarios that did arise were somewhat unnerving. Early in February, Frank discovered that one of his long time clients had passed away. Not an unusual situation, unless you factor in that Frank was responsible for the discovery of the remains. That kind of rattled Frank.
Later on, there was a conflict between two of Frank's business clients...he was able to appease the situation, but the relationship between the two was severed. Several new clients were added to Frank's roster as well as several new business clients. Although Frank has built the firm on new businesses, several of the additions are existing and thriving businesses.
There was the "too much to do and not enough time to get it done" syndrome, and it appears that is going to be situation normal moving forward. The primary team, Glenda, Tammy and Renay have removed a great deal of the workload from Frank, a workload that he shouldered by himself just a couple of years ago.
The secondary team, Jacob and Tina, working mostly on Saturday's, were able to take care of some of those tasks that slip through the cracks, like birthday cards, mailings, etc., as well as help with the data processing of the bigger returns.
One member of the team that was noticeably missing was Frank's Tammy (as opposed to Tammy H., mentioned earlier). It was decided early on that Tammy would not be involved in the office this year, due to Kendall not being able to stay at the office for extended periods of time. Don't misunderstand, Tammy was, and always has been, Frank's moral, emotional and loving support...but her presence was definitely missed around the office this year.
Over the past couple of weeks, Frank has relaxed somewhat. Sure, he's processed quite a few of the extended returns, and has but a few left. Those will probably be finished this week. But, just as Frank was putting the stress and angst associated with tax season into the memory banks, a natural disaster struck the Middle Tennessee area and his adopted home of Cheatham Co bore a great deal of the brunt of that flood.
Friends and neighbors, strangers and relatives faced the devastation left behind. As the waters receded, the cleanup began. Frank assisted in that cleanup effort this morning for about 6 hours. As Frank was driving to his friend/client's home, he felt as if he were entering a war zone. Hundred-year-old trees were uprooted, homes were moved from their foundations, mud as deep as three feet was common, and the devastation was unimaginable.
When he arrived at his destination, he greeted his friends and asked where to begin. He could tell they were exhausted, but strangely, they seemed so optimistic. And, as he worked in that small community, and talked to those he worked with, that optimism was prevalent. Something surfaced that Frank had not been a part of for many, many years...a sense of community. Neighbor helping neighbor...strangers meeting and sharing a common goal...conflicts and disputes laid aside to help those in need through the challenges they face.
His friends plan to rebuild, having removed the sheet rock and cabinets, furnishings and cherished mementos from their home. They have a long road ahead. There will be challenges, there will be triumphs and goals achieved, as well as setbacks and disappointments.
Frank will continue to return weekly to be of whatever help he can. In the coming weeks and months, this small community will rebuild. The debris will eventually be removed, the homes that can't be restored will be demolished. Those that can be rebuilt will begin to take shape.
It will never be the same as it was when the rains began on April 30th, but rebuild it will, and Frank hopes to be a part of that rebuilding, in whatever way he can.

Appreciation

You know, sometimes you just don't appreciate those around you that mean the most. It sometimes takes an event, or a circumstance, or something really dramatic to, as Frank's dad is prone to say, "smack you upside the head with a two by four."

Frank and Tammy have been married for nearly 22 years. They have endured learning to be married, learning to laugh at life's little challenges, laugh at themselves, and build a loving and trusting home for themselves and their children. They have been through more than a few job changes, a career change or two, change in homes more than a few times, and those changes in their family that seem to never be as expected.

Life seems to throw challenges that somehow seem to strengthen each of us in the long run. Whether it be the joyous occasion of a birth, a graduation, a milestone reached; perhaps a sad event such as the loss of a loved one, the onset of an illness or disease; or just enduring the day to day challenges that come down the pipeline such as communication challenges with colleagues or friends, the unavoidable conflicts of life, or just plain ol' disagreements.

Frank found himself in one of those unenviable situations a few weeks ago. The conflict had been building for nearly two years, and played itself out in the most unlikely of settings, with a cast of players that no one would've predicted. The details of the incident or the circumstances that led up to the public event are not important. The specifics of the dispute are irrelevant to those not directly involved. But, what is important, is the lessons learned by Frank through the process.

Frank has prided himself on an ability to handle those situations that confront him on a daily basis. He doesn't like to burden Tammy or the girls, and in most cases, has been successful in keeping the issues out of the home. That's not to say that Frank and Tammy don't discuss life's events on a regular basis, but that Frank tries to be self-sufficient in handling those events, believing that doing so is a better choice.

However, this particular event was more than Frank could handle alone. He became entirely entwined in the conflict, he allowed himself to become emotionally involved in the situation, he felt himself dangerously losing control of his ability to contain the rage he felt. He walked away from the confrontation to find himself momentarily confused, angry beyond belief, but most of all, alone.

The operative word is momentarily. As soon as Tammy was notified of the events, she went searching for Frank. It wasn't long before she was successful in locating him, and was shortly by his side. When Frank needed to talk, she listened. When he began to vent his rage, not at her but the situation, she offered comforting words. When the adrenalin began to subside and Frank began to shake from the sudden physiological change, she held him.

Frank took from this incident not the anger, not the confusion, not the near lack of control, but rather a renewed appreciation for his wife, Tammy. She, in her uncanny way, knew where she was needed, what she needed to do, the words she needed to say...or not say. She was Frank's calming effect, his port in a sea of turmoil, his anchor to bring him back to a comfortable place.

Tammy, to Frank, is his life partner, the mother of their children, the love of his life. Sure, they've had their disagreements; what married couple doesn't? But, the good far and away outweighs the bad in their marriage; they have been successful together building a loving family; Frank gladly and proudly attributes his success to the quiet and faithful support of his lovely Tammy.

So, as it hasn't been said nearly enough to the lovely Tammy..."Thanks, Shuggee...I love you!"

A New Year.

It's Sunday night, January 3, 2010...
Dinner is done, the dishes are washing...the "big chunks" are picked up around the house and the kid's getting a "hot bath" (as opposed to a "cold bath" this morning before church), and I am helping Frank write his blog with a glass of wine.
The holidays were a mixed bag this year. Frank and Tammy hosted, not two, but three of the holiday events...Thanksgiving, Christmas and Kendall's birthday for the entire Luppe/Carson clan. It was good to have the families in for the occasions, but realize, it was a great deal of work for the Luppe's to make it all come together. From the all-nighter that Frank pulled the night before Thanksgiving because the turkey didn't thaw, to Tammy working overtime to make sure everything came together for Christmas, to Allison keeping Kendall occupied so that Frank and Tammy could do some experimenting in the kitchen to pull off Kendall's birthday dinner.

New Year's Eve found Frank and Kendall at home with overzealous "bugs" that wouldn't go away (later discovered as a stubborn case of bronchitis for Frank), while Tammy and Allison went to the Glasgow home for an evening of celebrating the New Year's arrival. Frank and Kendall were in bed and asleep by 10:30 pm, completing the arrival and departure of "amateur night" for Frank.
There were multiple church services, one of which saw the end of Allison's acolyte duties, all that provided a stabilizing faith for the Christmas season, and many of these services found Frank participating as either an usher or a worship assistant, providing him with a new positive perspective that he had never noticed before.

Even though the holidays this year were able to produce multiple three- and four-day weekends, it seemed as if the holidays tended to merge into one long holiday. So the last of the decorations have been put away, the refrigerator is giving up the last of the holiday leftovers and wine, and Kendall's questions of "when is Santa Claus coming back?" are becoming fewer and farther between. The Luppe's have witnessed the end of another holiday season, another month, another year and another decade. The page is turned, and new chapters are beginning.

There have been, as is usual, conversations of new year's resolutions, the promises of exercising more, smoking less and eating healthier. So, what does the new year/decade hold for the Luppe's?
Well, there's a pretty good chance that Allison will complete the 9th grade, completing yet another step toward young adulthood. She will continue to grow in her education, her faith, her experiences. Frank and Tammy will continue to watch in awe, wonder and yes, a great deal of chagrin, as she continues to grow into the young lady they have dreamed of. She will continue to test her adult-like wings, and now, more than ever, Tammy and Frank will try to be available to let her test those wings, but, be there to pick her up, should she stumble.
Kendall will continue to develop past the toddler stage and more into the pre-schooler. Frank continues to be amazed with each passing day how she is growing up so fast, how she continues to test the boundaries, how much he hates seeing her grow and lose some of the dependency she not too long ago demanded.

LuppeCPA will in all likelihood continue to grow and develop through the infancy stage of business and start in the maturity phrase.
And the lovely Mrs. Tammy will continue to be the driving force of the Luppe's. Providing, with no complaining, the stabilizing force of the family, providing the loving and strong home, the port in any storm. Tammy is beginning to get the itch to return to the workforce, and, will probably do so this year. It will be an adjustment for all, but Frank is determined to be supportive of whatever direction she wants to take. These are those things that have a better likelihood of happening.
But what about the goals for '010? (Coincidentally, there seems to be a debate of whether this year is referred to '010' or '10'....well, from Frank's point of view, there are a great deal of other issues more worthy of debate...pick one!)
On the professional front, one goal that Frank is determined to reach is to gain the certification of Certified Fraud Examiner. Frank would like to see the firm continue in revenue and client's served growth. Frank would like to eliminate any debt currently owed by the firm.

On the personal basis, Frank will seek to grow in his role as a loving and patient father. He will seek to be more of a partner at home to Tammy, will seek to "count to 10" more often.
He and Tammy have set as their primary financial goal eliminating as much personal debt as possible. At this point, they are closer than ever before to that goal. It is very conceivable, with discipline, that the Luppe's will owe only their home mortgage, by as soon as the end of May.

So, here we go...feet first into the year 2010. It, like it predecessors, will have challenges and disappointments, triumphs and defeats. The year holds events not yet seen that will surprise and amaze us. The year will see goals reached and not quite reached, will see new opportunities not yet seen.

So, have fun...talk to you later.