It is Sunday night and Congress seems to have pressed a deal for the President to sign this week. While most of the news centers around sports, weather and entertainment, very few are aware of the sour grapes currently being smashed under political feet.

It is being called a BAILOUT. Well…okay – that’s what we will call it then.

What it means to me is another finger in an ever leaking dike. The real question is whether there are any fingers left because many holes exist. As we wait for another rendition of a Breaking News bulletin on whichever main stream news media you fancy, the financial markets are imploding. Unsure of the veracity of my claims? Try borrowing money to start a business. Have you talked to the Small Business Administration about a start-up loan lately?

Credit has nearly been seized and borrowings between banks are completely uncertain. Small business is caught smack in the middle of a big-time Texas Hold-em game and the deck is stacked. We are looking for serious leadership right now as a nation in perilous times and instead the International bankers have are parlaying a dog and pony show of Barack and John. Are you kidding me???

While special interests have the election bought and paid for, on the local front we are trying to meet payrolls. Between you, me and the lamp-post, I recommend getting back to basics. This “credit crisis” is not about home mortgages or asset values as much as it is about liquidity. Small business today must concentrate on liquidity to insure solvency.

BREAK-EVEN ANALYSIS

Daily in our conferences we talk about cash flow and sales break-even points. Commonly referred to as a “making our nut” in the sales community — we are talking about cash inflows exceeding cash outflows. At the end of the day, week and month did we make a profit? Let’s talk more about your Company in detail next time we get together.

CASH FLOW ANALYSIS

Are we making any money? If your outflows exceed the inflows, it is time to talk right now. We must always be concentrating on sell more to more people at less cost. While those three things are imperative, they are very difficult to do. I know — I am running a Small Business as well remember. Currently, we are in the process of preparing for the upcoming tax season and practicing what we preach. We understand the responsibility we have been afforded in your service.

TAX PLANNING ANALYSIS

We are currently developing a tax structured proforma for each Company we serve that considers the 2008 State and Federal Legislation being negotiated as we speak. In the coming weeks and certainly by Thanksgiving we anticipate meeting in person will all of out Company clients to review the developed tax proforma. We believe we have much to be thankful and a wealth of knowledge to assist and serve.  

(Richard H. Veihl CPA, is an author and owner of Veihl Consulting
Group, PC., a full-service accounting firm providing tax, accounting
and business consulting services to small businesses. We welcome the
opportunity to discuss your planning and business considerations. )

Veihl Consulting Group, P.C.
Certified Public Accountant
1416 S. Gratiot Avenue
Mount Clemens, Michigan 48043
(586) 468-6611