Cabin Business

Recession pressures have businesses spanning the economy discovering new ways to do more work with fewer workers, cutting payroll for good.

Employers became leaner and more efficient during the third quarter of 2009.

Clint Johnson, a University of Central Arkansas professor of economics, said that because of, not despite layoffs,  productivity — output per hour of work — has jumped at the fastest pace in six years.

“Employers always try to counter declining sales revenue by substantial cost-cutting, both by layoffs — having fewer people doing the same work, boosting productivity — and by capital-for-labor substitution, replacing humans with machines or computers.”

Last spring, when the U.S. government was trying to revive the economy, you may recall all of the stimulus money that was approved by our federal government. Inside the American Recovery and Reinvestment Act of 2009 were some provisions designed to benefit the environment, the economy and also your pocketbook. Inside that bill is nearly $79 billion allocated for renewable energy, energy efficiency and green transportation (according to a final tally of the legislation by the nonprofit organization Environment California). A lot of that money will be in the form of grants to fund projects for things like solar, wind and geothermal energy on a broad sense with tax credits promised to companies who complete environmentally friendly projects.

A small-business owner may be tempted to purchase an inexpensive software package to prepare his or her tax return and forgo enduring an annual audit from an outside CPA firm. After all, the small business may have a good product, good cash flow and few employee issues. The owners may not see the need for an annual audit because the business is family-owned, does not need bonding and does not anticipate having to borrow any money in the near future.

Business owners tend to think of documentation as a way to avoid trouble — and that’s absolutely true. But having good documentation does so much more than that. Good records help position a business where it can take advantage of profit opportunities when they present themselves. Good documentation is the thing that will provide the numbers you need to run your business. Numbers give you feedback. Without feedback, a business owner is blind when trying to make good business decisions.

Small businesses are the lifeblood of communities throughout Arkansas, and Conway is no exception. These small businesses provide a sense of personal service and a feeling of community with which larger corporations simply cannot compete. On the other hand, however, corporate businesses generally have access to much quicker and better funding. Fortunately, several agencies, including both federal and state, provide small businesses with resources to level the playing field.

Local accountants recently shared how small businesses can save money on business taxes and use good accounting practices.
Michelle Phillips, CPA, said a good place to start is keeping organized records.
“The majority of businesses in Conway are small businesses,” she said. “They may not even know where they are (financially). They may think ‘If I still have money in the bank, I’m OK.’”
Phillips suggested having an accountant do quarterly or year-end planning. Many business owners do not see their CPA until tax time, she said.

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Health care reform has been a hot-button topic since the presidential election, and even more so in recent months. Although several plans are still being considered by lawmakers, the Log Cabin Democrat approached several people in the health care industry about their concerns and hopes. These discussions shed light on various issues.

A provider
Jim Lambert, CEO of Conway Regional Medical Center, said some plans being discussed call for the proposed public rate to be based on Medicare and Medicaid rates while others leave it open for negotiation. One of his concerns is that Medicare and Medicaid do not reimburse providers enough to pay for the care, he said.

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Many financial institutions in Faulkner County offer Health Savings Accounts. Centennial Bank provided the Log Cabin with the pros and cons of HSAs.

Lately, one of the major hot button issues facing our nation is health care. There are many different options to attain health care coverage. Many believe that the only way to attain health care coverage is through their employer’s plan. However, other alternatives, such as Health Savings Accounts (HSAs), are available.

Dr. Pam Spikes, CPA, is a professor of accounting at the University of Central Arkansas. Dr. Patricia Mounce, CPA, is associate professor of accounting at UCA.

Congress still has four months in which to make changes to the 2010 tax law. At this point no one knows exactly what is to come. However, we can only assume that some recent tax changes that will affect 2010 tax returns will remain as enacted.

Kami Marsh is a Faulkner County Extension Agent-Agriculture.

Do you ever wonder where the food that your families are getting comes from? Do you ever stop to think about the quality of the food that you are preparing? Would you like to be feeding your family produce that doesn’t have to travel hundreds of miles before it makes it to your dinner table?

We are blessed with a great asset in our community and county, the Conway Farmers Market. This market provides a service to both the customers and the producers. Customers are able to feed their families produce that is produced locally and is of the best quality, and producers are able to make a living and sustain their family farms by selling their fresh produce.