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Solutions for SMALL BUSINESS

Case Studies


In 2005, our client founded Palmfund Management, LLC, a private equity firm focusing on investments in the Dominican Republic and Mexico. With a MBA from Stanford and experience working in private equity at Chase Capital Partners and J.P Morgan Capital Partners Latin America, this was the next logical step. The challenge? Beginning as a one person office, he needed the support of a responsive accounting firm to set his company up properly and afford them room to grow.

Enter Beacon CPA. From day one, we helped them establish an accounting system and handled all tax matters for their U.S. management company, as well as several other U.S. entities tied to their private equity investments. Challenge two? The management team was to be primarily in Latin American. Even though the managing member traveled there almost every week, he needed 24/7 access to his records from anywhere in the world. To satisfy this need for our client, Beacon CPA accessed the company's online banking information regularly throughout the year, posted data into our accounting system, and conferred with them often to ensure that the complicated flow of funds were accounted for properly.

In addition, Beacon prepared all U.S. tax returns for their multiple entities, responded to tax notices on their behalf, and worked with them to optimize the structure. Palmfund has flourished over the last eight years of our relationship, completing several successful private equity deals in their target market, and we continue to support them in the U.S. on all accounting and tax matters.

Smile Builders

Smile Builders started as our client's part-time dental practice while he was doing graduate training pediatric dentistry and orthodontics.. Today it is one of the fastest growing and well regarded pediatric dentistry & orthodontic practices in its area. Years ago, to support his family while in school, our client started seeing dental patients a few days a week by renting space in another dentist’s office. We were already his personal tax accountants, and we discussed his aspirations for the practice, its market potential, and the challenges of starting a practice from scratch.

Our initial recommendation was to adopt a tax efficient corporate structure that would maximize his after-tax earnings. At that time, we setup a basic bookkeeping system that was easy for our client to maintain, while our firm did the data entry and accounts on an outsourced basis. As the size of the practice grew, so did the complexity. We advised our client on a host of new issues, including income deferral strategies for better cash flow, how the business taxes would affect his personal taxes, how to characterize workers for employment tax purposes, and various models of incentive / equity compensation arrangements for key associates. When he undertook to build a state of the art dental suite, we assisted in obtaining bank financing. We also recommended conducting a cost segregation study, which dramatically accelerated tax deductions and considerably helped cash flow.

Today, Smile Builders has matured as a business and employs a full compliment of staff and internal bookkeeping support. Our firm oversees all the financials, consults on the many tax issues that arise, and plans to minimize taxes throughout the year. This gives our client the piece of mind to focus on servicing his many patients without concern about accounting and taxes.

Ramapo Land Company

The venerable Ramapo Land Company dates back to the 1800’s, when it was one of the largest land holders in the State of New York. Over its long life, it had seen many changes in the real estate market. Its current CEO, a former in-house counsel and board member of a Fortune 500 company, was charged with the task of maximizing shareholder value by liquidating the company’s remaining holdings.

At the time we met them, they still owned several commercial and residential buildings, an interest in an upscale development, and large tracts of undeveloped land. They had a small managerial office with some basic staff and a full time bookkeeper. The size of their operation didn’t require full time accounting support, and the CEO was looking for a more efficient, cost effect solution. Our firm was able to craft that solution for him on an outsourced basis at about 40% of his current costs.

We immediately set to work by reviewing all of their bookkeeping needs, including maintaining accounts receivables, real estate tax schedules, check writing, coordinating payroll, and maintaining their books. After a short while we had developed a customized system that would give them all the reporting they needed, as well as signature ready vendor and payroll checks. This allowed them to continue to manage their properties without the hassle of bookkeeping and gave the CEO the piece of mind to focus on his main objective of negotiating the sales of major tracts of real estate.

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