What’s Your Firm’s Best Move When It Comes To Capital Expenditures?
Your Friendly Bean Counter (FBC) keeps the books for a nice man named Brodie, whose primary business is a mobile dog grooming company, and whose primary name is not really Brodie.
The other day, Brodie called me up to talk about some major capital expenditures he’d been saving up to make, and he wanted my expert and friendly Bean Counting advice on timing the purchases for optimization of his tax bill. This is a pretty common topic during the later part of the calendar year.
“I need one more van,” he said. “Also, I’d like to open up a dance club.”
The van, I get. But the dance club?
“Dance club?” I said. “How does that fit into your dog grooming business model?”
More...
“It doesn’t fit neatly in there,” Brodie confessed, “but I’ve formed a parent company known as Brodie’s K-9 And Entertainment, LLC, and I’ll need to buy a bunch of stuff for this new business. It’s really a natural brand extension, if you think about it: Many dance club patrons have dogs.”
I couldn’t really argue with that. But since this is a made-up story, you can literally only imagine the conversation I had with Brodie about this “extension” of his business.
I mentioned that he’d want to have a discussion with his CPA about the dance club, but that the tax authorities would likely see the purchase of a new van as a legitimate capital expenditure.
We then took a look at Brodie’s books, and his business’s current situation, to help him work on a cash projection for the purchase. With this new cash projection, Brodie was able to comfortably set aside the funds he’d need to make sure the purchase didn’t have a negative impact on his firm’s ability to meet its regular obligations.
This is the kind of advice you can get on planned capital expenditures from your FBC. So if you’re contemplating some big purchases for your business, let’s meet and talk it over.
There are always cash flow and other business ramifications of major capital expenditures, and it’s best to get some expert advice on how to optimize your purchases.
There’s just no way to dance around it.
Discussion Questions
- 1Have you ever danced around capital expenditures? Send a short video
- 2What do you think would be the outcome if a mobile dog groomer extended their business to include mobile cat grooming?
- 3Are you contemplating major capital expenditures for your business, and need expert advice on timing the expenditures to optimize your tax situation?
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Howl-dy! I’m Sadie.
Dottie is my person.
Sadie’s Paw Prints
Keep Your Dogs Away From Anti-Freeze!
Sadie here – Dottie’s furry companion and overseer – and this month, it’s time to discuss a topic which is very near-and-dear to a dog’s heart, not to mention its kidneys, liver, and brain.
I’m barking, of course, about the accidental and catastrophic poisoning a dog can suffer if they are allowed to consume anti-freeze.
The dangerous chemical in anti-freeze (and also in many automotive brake fluids) is ethylene glycol, and hooo doggie, that stuff’s a killer.
If we dogs are roaming around in the garage or out on the driveway, and we spot some fluid that’s dripped from a car’s radiator or brakes, we can’t help ourselves: we’ll lap that stuff up. And even if we only ingest a few drops, it’s very likely to make us go where all dogs go: Heaven.
If it’s a small amount of ethylene glycol that gets into our system, we’ll probably survive for a while, but we’re still going to develop kidney failure, and usually within a few days. Kidney failure alone kills a lot of dogs who ingest that nasty stuff.
And any more than a few drops will cause catastrophic failure to most of our systems, including our livers and our brains.
So don’t let your furry friends get anywhere NEAR anti-freeze, or anything containing ethylene glycol. It tastes yummy, and smells interesting… but it is definitely NOT good for dogs.
Bow, WOW!
Non-Profit Spotlight
The Poor In Kenya Could Use A Shot Of Love
Your FBC is a full-throated supporter of Angel Covers, a wonderful non-profit organization that does so much good for underprivileged people around the globe.
A couple of months ago, we wrote about a new project Angel Covers is supporting to bring much-needed high-quality medical care to poor folks in Kenya.
We’ve met a medical practitioner there who has a passion for delivering great medical care to Kenyans in a family-centered environment, and that’s something that’s been sorely lacking in the area before now.
But this effort needs help. Angel Covers is reaching out to big-hearted folks like you to help us establish the kind of medical and laboratory resources and facilities needed to make this vision a reality.
The expertise is there… the enthusiasm is ever-present… but we still need help with funding the facilities desperately needed to deliver great health outcomes to these under-served folks.
You can learn more about the Kenyan clinic project at the Angel Covers website:
https://angelcovers.org/
And, of course, it’s easy to make a donation on the website to help support the cause. In fact, any donation you make to Angel Covers helps support not only the Kenya clinic, but many other worthwhile projects, in needy places all over the world.
Your support can help poor folks in Kenya feel a lot healthier. And knowing you’ve supported this great cause will make you feel pretty good yourself!
Thank you!
