After meeting the President of the United States, I stumbled upon a very important tax lesson that can save your company a whole bunch of money. Click here to listen to the story:
Archive for 2012|Yearly archive page
Tax-Free Weekend
In Just for Fun on October 18, 2012 at 10:55 PM
When the weekend comes, I’m ready to take a break from sales taxes. I love what I do for a living, but I also can’t wait to recharge my batteries and reconnect with my family at the end of each week.
That’s why I try to enjoy a tax-free activity each weekend!
These are activities that I don’t have to pay for (so sales taxes are never included), yet they yield tremendous value in the form of memories and life experiences.
This weekend, I’m going on a photo safari with my daughter. (The picture above was from from our last photo safari at The White House.)
On our photo safaris, we pick a spot to visit and snap dozens of pictures. No schedules, no rush, just a fun time trying to take awesome pictures.
Sometimes, I’ll wear a loud Hawaiian shirt, a bucket hat, and flip flops so I can blend in with the tourists. (Who am I kidding, that’s my standard uniform for the weekend regardless of what I’m doing.)
When was the last time you grabbed your camera and went out on a photo safari?
They’re free, no sales tax will be due, and you’ll enjoy the chance to slow down and capture a moment in time that you’ll want to cherish for the rest of your life.
If you decide to take my advice and go out on a photo safari this weekend, feel free to leave a comment below and tell me how it went!
My Wife’s Car Is Becoming A Money Pit
In Automation, Compliance, Nexus, Tax Planning on October 3, 2012 at 3:58 PM
I just installed a new battery in my wife’s car and now I’m trying to decide what repair I need to tackle next. In the very near future, it needs new tires, brake pads, a transmission flush, and a headlight lens on the left side.
To be fair, the car is six years old so it’s going to need more maintenance than just routine oil changes.
You’re probably asking yourself, “What does this have to do with sales taxes?“
Companies should view their tax planning strategies a lot like cars with respect to maintenance.
When a car is new, you typically don’t have to worry about any major maintenance for a while. As the years go by, the normal wear and tear on a car leads to a greater need for substantial maintenance.
When a tax planning strategy is implemented, companies can enjoy the benefits for a while. As the years go by, the normal changes in the company’s operations, as well as tax law updates, leads to a greater need to revisit the past strategies that were put into place.
[Pause for a second]
If you read the phrase “tax planning strategies” and automatically assume I’m only talking about big-ticket ideas like complicated reorganizations, then you’re mistaken.
Routine maintenance also applies to more mundane aspects of your company’s sales tax compliance practices. For instance:
1) How long has it been since you’ve conducted a nexus analysis?
2) How long has it been since you’ve examined the sales tax collection procedures?
3) How long has it been since you’ve examined the use tax accrual procedures?
4) How long has it been since you’ve examined the reserves booked for contingent liabilities?
5) How long has it been since you’ve reviewed the exemption certificates you have on file?
This list could go on for almost as long as the repair list for my wife’s car.
Let’s be honest with ourselves, Fridays are usually the slowest (and least productive) days of the week for most companies. How about planning to end your week with a bang by setting aside an hour on Friday to do a maintenance check on your company’s sales tax compliance functions?
If you need someone to help you hold up a shop light, hand you a wrench, or help you figure out where that strange ticking noise is coming from, then I’m your man. I love getting my hands dirty from sales tax maintenance.
Happy motoring.
What If Don Draper…
In Audits, Just for Fun on September 20, 2012 at 10:30 PM
Source: amctv.com
What if Don Draper didn’t drink?
(Then he probably wouldn’t need to take naps in his office every day.)
What if Don Draper didn’t smoke?
(Then he probably wouldn’t have been keeping his fingers crossed the whole time he wrote his famous “Why I’m Quitting Tobacco” letter to the New York Times.)
What if Don Draper didn’t work in advertising?
(Then he’d probably try to break into the tax business.)
WHOA! Pump the brakes there hot rod! Explain yourself.
If you’re not familiar with Don Draper, he’s the main character on AMC’s hit television show Mad Men. While he may be a binge drinking chain smoker, there’s one’s character trait he possesses that’s very impressive: his ability to sell ideas.
As an advertising executive, Don Draper helps his clients make their products or services stand out in a sea of competition. He’s “the one to beat” in the eyes of other advertising executives on Madison Avenue.
Despite his status and brilliance, he still finds himself in front of clients, coworkers, family members, and acquaintances who don’t see eye-to-eye with him. That’s where he shines.
Here’s one of my favorite lines from Don Draper:
“There are snakes that go months without eating, and they catch something, but they’re so hungry that they suffocate while they’re eating. One opportunity at a time.”
So, why would I assume that he would jump at the opportunity to be a tax professional if his gig as an advertising executive fizzled out?
I think he’d find similar challenges in the tax profession that drive him to succeed in the advertising business. Here’s an example:
Tax departments often get rejected when budget requests are made for new technology, resources, or help from outside advisors. I could see Don Draper painting an image in a CFOs mind of how these expenditures could lead to competitive advantages in the marketplace, preserve profit margins, and minimize risk.
After his eloquent speech, he’d take a long drag on his Lucky Strike cigarette and stare down the CFO with an air of confidence that would make any disagreements out of the question.
Does your tax department need new technology, resources, or help from outside advisors? Whatever you need additional funds for, channel your inner Don Draper and explain to the CFO how the tax department isn’t an overhead expense on the income statement.
No, the tax department helps drive profit on the income statement.
Now, let me throw it back to you. How do you sell your company’s CFO on giving adequate budgets to the tax department? Leave your comments below and let’s share our ideas!
The Only Tax Podcast: Episode 8
In Podcasts on September 19, 2012 at 11:21 PM
Can you influence change when it comes to our nation’s tax laws? Let’s find out on this episode of The Only Tax Podcast. Click here to listen:
The Only Tax Podcast: Episode 8
The Helpline
In Audits, Compliance, Tax Planning on September 19, 2012 at 2:10 PM
When I have a problem with a product I own, I usually turn to Google for help. I’ll grab my iPhone, run a quick search, and I’ll have the solution I need in a matter of seconds.
Speaking of my iPhone, I totally broke my rule of Google diagnostics and bought the AppleCare support plan. Since many aspects of my practice depend on how I use my iPhone (calls, e-mails, calendars, recording podcasts, writing these blog posts, Tweets, LinkedIn updates, banking, etc.), I saw it as a smart investment.
Some of my clients have recently made smart investments as well.
A new service that my firm offers is a Sales Tax Support Plan. Think of it like Apple Care, but for sales tax questions.
Have you ever come across a sales tax question and thought, “Ugh, I don’t have the time or the energy I need to dig into this.”
With a Sales Tax Support Plan, you can have one of those “Calgon, take me away” moments (remember those commercials?). You can call us up, pass along the question, and we’ll get back to you with a recommended course of action.
It’s that simple.
We set our Support Plan clients up on a retainer so they don’t have to worry about the hassle and red tape that comes with processing a vendor’s engagement letter. When you have a quick question that needs immediate attention, you don’t want to mess with any of that crap!
A Sales Tax Support Plan can free you up to take care of the other 99 tasks on your daily to-do list.
Freeing up your time + Getting stuff done = Smart investment
(I’m good with math!)
Can I help you get setup with a Sales Tax Support Plan? If so, fill out this form and I’ll get back to you lickety-split:
The Only Tax Podcast: Episode 7
In Podcasts on September 12, 2012 at 10:05 AM
Are sales tax auditors asking you crazy questions? That’s the topic of this episode of The Only Tax Podcast. Check it out by clicking the link below:
The Only Tax Podcast: Episode 7
The Only Tax Podcast: Episode 6
In Podcasts on September 1, 2012 at 2:17 PM
It’s time to reminisce about the good old days…and get a tax lesson while we’re at it. Welcome to episode #6 of The Only Tax Podcast!
My Secret Addiction
In Tax Planning on July 19, 2012 at 1:47 PM
While I was having dinner the other night at one of my favorite restaurants, I noticed a young girl walking around. She looked to be about 9 or 10 and she displayed signs of having some sort of developmental disability.
As I watched her, she went from table to table saying hello to everyone in hopes of striking up a conversation. She was cheerful and warm, despite the rejection and cold responses she was getting from every table she visited.
At one point, I saw her wave at her mother. It was done in a way that signaled she was okay and having fun. The woman watched her daughter with complete adornment.
As a waiter brought over their desserts, I saw the girl hurry back to her table and swoon over a plate of apple pie with a huge scoop of ice cream on top.
After watching the pure and innocent joy this child had, all the stress of my day seemed like such a waste. Life is too short to get caught up in that kind of crap.
As the waiter headed back to the kitchen, I flagged him down and said, “Here’s my credit card. I want to cover the bill for that woman and her daughter. Don’t tell them who paid though.”
My name is Derek and I’m addicted to random acts of kindness.
Phew! I’m glad I got that off my chest.
While we often associate addictions with destructive behaviors, it’s also possible to be addicted to positive behaviors as well. Random acts of kindness give me a rush of excitement and adrenaline.
Examples of other positive addictions may be faith, golf, or even something as back-breaking as home improvement.
Considering my profession, can you guess what positive addiction I occasionally observe? That’s right, an addiction to tax planning.
No disrespect to the income tax world, but I don’t see as much excitement in the eyes of tax professionals these days when talking about income tax planning. I think the heyday of corporate tax shelters and black-box strategies are long gone.
Instead, I see more people opening their eyes to the opportunities that exist for sales tax and use tax planning. The strategies aren’t flashy, but they easily create an impact on a company’s bottom line.
With so many moving parts in the sales and use tax world, planning and optimization opportunities are plentiful. Plus, they’re rather easy to implement.
So, if you want to catch the same bug I have for random acts of kindness, check out this site for ideas and inspiration.
If you want ideas and inspiration on how to catch the sales and use tax planning bug, subscribe to this blog by following the e-mail subscription link below and I’ll promise to share quick tips and stories that can help you take advantage of the opportunities I alluded to above.
Be careful…the pleasure that comes from progress is highly addictive! (Click here to tweet this)
Try This Experiment
In Just for Fun, Profit on July 15, 2012 at 10:38 PM
When you leave work tonight, take a look at your to-do list and then take inventory of how you feel.
If you have a productive day filled with massive action and shortened to-do list, then I’m betting you’ll leave the office feeling great.
If you have a hectic day filled with interruptions and a to-do list that’s larger than when you started the day, then I’m betting you’ll leave the office feeling drained.
How about your staff?
How do you think they’ll feel when they leave the office tonight?
Throughout the last 5 years we’ve been in this “global recession,” I’ve seen many clients working with a lean headcount of staff that leaves the office each night feeling drained.
How to Help Your Employees Feel Great at the End of the Workday
Foster an environment of massive action and you’ll retain great employees. (Click Here To Tweet This!)
Do your employees have the tools they need for massive action?
Do your employees have an incentive plan that rewards massive action?
Do your employees have adequate support in place for massive action?
I can’t really offer you much advice on the first two questions, but I certainly can chime in on the third one.
If you aren’t already a client of Bellatoris Consulting, you’ve probably gathered from this blog that we’re in the business of helping clients take massive action with sales taxes and use taxes.
What you may not know is that we also work on retainer for clients that just want a 911-style hotline for sales tax and use tax questions that come up. This is perfect if you if you don’t have the immediate need for us to do a full-scale project, but still want to foster an environment of massive action.
So, roll up your sleeves, shotgun a cup of coffee, and shout your favorite battle cry (e.g. Let’s Rock, Get-R-Done, Do Work Son, etc.) and let’s all have a day filled with massive action!
