The Exuberant Accountant - Scott Heintzelman

FDIC to Propose Banks to Prepay 3 Years of Fees

In an unprecedented move, the nearly bankrupt FDIC is proposing a plan to replenish its depleted fund by requiring banks to prepay 3 years worth of insurance fees.  This would likely generate over $36 billion in additional reserves.  The FDIC started the year with a reserve of over $45 billion and the reserve is now down to around $10 billion.  This is the result of 95 banks failing so far this year. 

This current economy has already put tremendous downward pressure on bank profits.  The banks have already seen an increase in FDIC fees and need to increase reserves as a result of weakening credit quality.

Cutting Back Advertising Dollars? Time to Invest in Web 2.0

What steps are you taking to survive the recession?  Are you scaling back payroll?  Are you cutting back on marketing and advertising?  How are you staying in front of your customers and the marketplace? It might be time to start using Web 2.0.

 

Many businesses are cutting expenses in areas such as: sales, marketing, advertising… all areas that may not have a short term payback, but clearly have a long term return.  But is this the correct strategy?

Best Accounting Firms to Work For: McKonly & Asbury

Good news to report!!!  McKonly & Asbury has again made the list of Best Accounting Firms to Work For in the U.S.  Last year, McKonly & Asbury decided to try our hand at national recognition, after being named on the list of best medium-sized companies to work for in Pennsylvania. We were honored when we found out we were named one of the Best Accounting Firms to Work For in the U.S. by Best Companies Group and Accounting Today - a leading industry publication.

"This is a difficult economic environment for any business to manage through," said Terry Harris, Managing Partner.  "To be recognized on a national level among our accounting peers is an honor and a credit to our entire team."

We are fortunate to have some of the best and brightest talent in our industry working for us and we hope that this honor will continue to help us keep the high-caliber professionals our clients have come to know as part of the McKonly & Asbury team.

"Even in challenging times, we are striving to foster a culture of open communication and trust in our firm. Service to our clients is our number one priority and by taking care of our most important asset, our people, our clients are served well by our talented professional team" said Harris.

Protectionism, China, Foreign Trade and the G-20 Summit

Last week our government decided to slap a 35% tariff on China tire imports. This seemed to receive very little play in the media.  This seems to be a good political move during a recession as many citizens stress the importance of buying American and saving our jobs.  But is this a smart policy long term for our country? Are there consequences?  Is foreign trade important to the United States?  Later this week the G-20 (The Group of Twenty Finance Ministers and Central Bank Governors who focus on improving the global economy) Summit will be held in our state and the entire world will be focused on the outcome.

Family Business: Escaping a Culture of Entitlement

One of the biggest challenges of a family business is the issue of entitlement. We have seen it many times.  Junior is given the title of vice president without ever paying his dues.  Members of the cousin generation (third generation) have only known the business as successful and expect it to continue and for the business to just be handed over to them.  During a recent session at the S. Dale High Center for Family Business, a great presentation was made about escaping a culture of entitlement.

 

Tom Wolf, Chairman and CEO of the Wolf Organization, a six generation family-owned building materials business based in York, PA, presented how you avoid this entitlement problem.

Food Network Visits The Warrell Corporation

 

I am excited to share that another one of my great family business clients is getting featured on a major TV network.  First, the fine folks at Seltzer’s Smokehouse Meats (maker of Seltzer’s Lebanon Bologna) had a visit from Mike Rowe and Dirty Jobs and now The Warrell Corporation is getting a visit from the Food Network.

 

Recently the food network filmed an upcoming episode of Unwrapped at Warrell.  The segment is called “Toasted” and is airing Monday, September 21, 2009 at 9:00 p.m. EST. 

 

The Warrell Corporation began as Pennsylvania Dutch Candies in 1965 as a specialty candy manufacturer and distributor. The company has now evolved into so much more as they currently have a strategic objective of developing long-term contract manufacturing partnerships with the world’s top food companies.

 

I encourage everyone to watch the show and enjoy learning more about candy manufacturing from the really sweet folks at Warrell.

Masser Potato Farms

As an eighth-generation, family-owned potato farming company, Masser Potato Farms has become one of the most well-known potato companies in the area, packing and distributing over 70 million pounds of potatoes each year from its operations located in Sacramento, PA. Masser’s is a successful organization with rich history in serving the community and their employees – a perfect example for the next posting in my continuing series of Organizations that “Get It.”

Family Business Owners and the Estate Tax - Part 2

In my first post Family Business Owners and the Estate Tax - Part 1, I discussed the not-so-probable repeal of the estate tax in 2010. As a recap, the administration has proposed that the 2009 rates and exemption amount be extended through 2010 (top rate of 45% and exemption amount of $3.5 million). This means it is likely that the estate tax will not have a vacation in 2010, as originally legislated. In addition to the "repeal of the repeal," the current administration has also proposed some significant changes to certain aspects of estate planning tools used very frequently by family owned business owners.

 

Here is a quick recap of two main proposed changes:

Leadership: Service in the Armed Forces

I recently had the privilege of attending the swearing in ceremony for a family member as he was joining the Marines (The Few, The Proud, The Marines).  He was being shipped off for several months of basic training at Parris Island, which has a motto of “We Make Marines.”  I can only imagine how difficult basic training must be for a young marine recruit. 

During the ceremony, these young recruits swear to defend the constitution and our country from enemies both foreign and domestic.  The also swear to obey the orders of our President and their commanding officer.  I still get a lump in my throat as I think of this sacrificial leadership.  As you watch the parents of these young recruits, you also realize how much they sacrifice.  In one sense, they are so proud of the decision by their child to serve, and yet at the same time they wonder what the future holds for their child.  If you ever get the chance to go to a MEPS (Military Entrance Processing Station) and watch the swearing in ceremony, I encourage you to do so.  You will have a greater appreciation of the sacrifices made to live in a free country.

Labor Day and the Gift of Work

One of my favorite movies is The Ultimate Gift, which is an amazing story about the various gifts we can receive (love, dreams, laughter, learning, family…).  The very first gift in the movie is the gift of work.  As the father of a teenager, I can tell you that they do not associate work with something wrapped in fancy paper and a bow.  This got me thinking about work and what it gives us.

 

Obviously, most people work in exchange for a paycheck and the basic necessities and lifestyle it buys.  It is a business transaction.  I will give you 40 hours and you will give me wages.  But is work only about a contractual agreement?  Does it give us anything else?  Is it really a gift?