Introduction (Beware that 2011 is coming)
At the time of writing these lines, we are facing what seems to us a possible hardening of the financial situation of the companies, as well as a significant pressure received by the Banks and Savings Banks, both from the Bank of Spain (in which the Bank clearly shows its situation due to its enormous historical exposure to brick) as from the real estate crisis itself, which does not show clear and hopeful signs.
This could perhaps provoke, once again and even more, tensions in the financing of companies (would the banks reduce the credit supply even more?), And at the same time a gradual increase in the cost of money.
This important question being important, our “photo” of entry into the new year should catch us trained, and we understand that it would be interesting to plan the accounting close of 2010 with some peace of mind and perspective so that our image vis-à-vis third parties clearly indicates (and maximizing our virtues), where we are and who we are, that is ………..our potential.
"… Are we prepared for the Bank not to renew our credit policy? ………
Will our operating account support a possible increase in financial cost?….. "
We believe and recommend that the secrets of the 2010 accounting close should be:
1) Simulate and anticipate possible scenarios of the closing in advance to when it will occur, to check how to save / defer taxes for this year 2010, and make the most of fiscal resources.
2) Favor and improve with the planning indicated in the previous point, and to the maximum our financial image, before third parties (Banks, Suppliers, Credit insurance companies, Customers and the market in general).
3) Confirm our evolution in the Long Term, of the Strategic Plan that we have marked, budgeting a forceful action to eliminate costs for 2010 and business volumes in accordance with what is desirable, establishing a possible PLAN B, if the Bank and the market, in general, it reduces the supply of credit and, what is worse, increases the costs of financing.
How to save or defer taxes?
It is basic to point out a list of concepts that can help us to do this…, for example …………….
0) Have we taken care first of all the global vision between related companies, associates and with the Administrator and Partners?
1) Do we have everything related to Related Companies documented?
2) If the Administrator is an employee at the same time, do we take into account the global vision?
3) Have we paid dividends that up to 1,500 euros do not imply income for the recipient of this amount?
4) Have we amortized accounting, to the maximum number of tables? (including methods such as digits), and if we have not done it for accounting purposes, have we calculated the temporary differences for tax purposes?
5) Have we verified latent delinquency on our balance sheet, and its possible repercussions on the profit and loss account?
6) Have we carried out the annual TDV (Impairment Test) to validate our current and non-current assets?
7) Following the criteria of leasing, (in the assets financed by this means) have we doubled or tripled the amortization tables of the Treasury? In accordance with our subjective tax benefits.
8) In the case of SMEs, the purchase of non-current assets, less than 600 euros (VAT included) have we thrown them directly at expenses, with a maximum of 12 thousand euros per year?
9) Do we take into account that the December Social Security and some other items (which will come to us in January), can we allocate your spending within the current fiscal year?
10) Are we going to pay Bonus to staff or productivity pay?… We can allocate your expense to this exercise. (See if your March pay picks up this feature?).
11) Do we have any dispute with workers, clients, suppliers, etc.? Possibly the expenses that we have in the future, we could supply them in the current fiscal year.
"… just like last year, the closing of the accounts is perhaps no longer just a process and becomes our business card….."
How do we see the future? Or …….What do we want to be when we grow up?
Regarding budgeting our activity for the year 2010, perhaps we recommend:
1) Consensus with the rest of your team, of conservative but limited business volumes in time, and consistent with the company's Profitability Threshold, as well as with the necessary LIQUIDITY, ROE and ROA terms.
2) Drastic elimination of ASVAS (Non-added value activities), and overwhelming elimination of expenses that, allowing us to lower the UR (Profitability Threshold), facilitate “navigability”.
3) Construction of a simple CM (Scorecard) that allows us to control macro-magnitudes at least once a month, of mandatory surveillance and that ensures that we are going in the right direction.
4) Study of the “ Banking Map ”, to decide our negotiating strategy with Banks and financial entities, this coming year 2011.
5) Plan our RETENTAL (methodology to retain the increasingly important talent of our collaborators / employees)
6) Monthly Treasury Budget (obsessive neurosis in protecting liquidity), according to the previous data, let me "watch over" the situation.
Final recommendations
After feeling in our neck, the looks of the global vision of the previous point, I think we should proceed to:
• Review the check list attached to this article
• Value the Intellectual Capital of the Company and communicate it to the market
• Report our actions with the Environment and CSR
• Assess exactly how the financial vision of our data will be
• Prepare, if possible, a “February Report” complementary to the Corporate Tax and the RM annual accounts, indicating of course if we have the ISO quality, etc, etc.
• Prepare a report for the shareholder, if necessary and separately, that includes the deviations to the Strategic and Budgetary Plan, Draft of intentions for the following year, Evolution and reasoning of the dividend that is intended to be established, and conclusions regarding the Image Financial before third parties, Social Stability, Brand Image, Goodwill, and other internal or external variables worthy of mention.
…… Value and “count” the Intellectual Capital of the Company and communicate it ……
May you also have a magnificent day today.
