Tax

Tax Planning and Optimization - For individuals, families, and businesses, tax planning is an essential tool that allows you to avoid the pitfalls of unexpected tax liabilities.  At WJH we provide tax planning in conjunction with overall financial planning services that allow you to achieve your financial goals. 

While tax return preparation is a "necessary evil," the financial pain that you could potentially suffer can be reduced if you carefully look at your situation and plan for taxes in advance.  Our tax planning services are an integral part of this process. 

The world of taxation has three core components -

• Rules -  The rules are, of course, beyond individual control.  But understanding the rules that apply to them is each individual's obligation.  We often talk to clients or potential clients who have problems with the IRS (or are at risk for having problems) because they took the advice of a friend or associate regarding their tax situation and the advice did not comply with the rules established by the taxing authority.  At WJH we do not control the rules, but we do understand them.

• Tools -  We use the best professional-strength tools available.    

• Timing -  Timing is an area over which we have some control and our clients have virtually absolute control.  Some of the biggest mistakes we see clients make are associated with a timing lapse on their part.  Sometimes they did not ask tax related questions early enough or they did not get expert advice before making a decision that significantly impacted their tax situation.  In other cases they ignored the tax consequences of their normal business transactions until faced with a payment due to the IRS.  Looking ahead with regard to taxes is always an appropriate approach.  We can save you time, money, and grief by helping you do this.      

Tax

Tax Return Preparation - We have significant investment in the people, the tax preparation software, and the tax research tools that are essential for the accurate and efficient preparation of tax returns.  With our tools, knowledge, and experience we prepare individual, corporation, partnership, trust, estate, and not-for-profit returns as well as associated state returns. 

We, of course, want to be considered your tax return preparation expert.  But, our highest value to our clients is not simply in preparing the return.  It is in preparing for the return in advance.  Our tax planning services help you avoid surprises and should be considered an integral part of return preparation.  

Tax

Representation Before the IRS - We've worked hard to build a reputation for honesty, quality, and integrity with our clients.  We have worked equally hard to develop the same reputation with the IRS.  We understand the IRS process and the ways to best represent our clients within the process.  As complicated as the tax code and regulations are, it is not unusual for there to be significant disagreements between a taxpayer and the IRS regarding the proper application of the facts to a given case.  We use knowledge of the rules and the process to ensure that our clients get the best possible results when the IRS calls.  

Tax

Sales Tax Services - Whether your business is required to file sales tax reports monthly, quarterly, or annually, we can prepare these reports.  We are also available to help determine which sales or services are subject to this tax, and to assist when the sales tax auditor comes calling.

Remember that purchases from out of state on which you were not charged sales tax are still subject to use tax in Texas and should be reported on your sales tax return.

Tax

Payroll Tax Services - Our staff can prepare your quarterly payroll tax reports for both the state and federal government.  (We provide these services for the clients who use our payroll processing service as well as clients who process their payroll internally.)  If you find yourself having problems with the taxing authorities over payroll tax issues we can also help with that.

Financial Plan Consulting

Financial Plan Consulting

Financial Plan Consulting

Investment Coordination Services - We discovered some time ago that many financial plans are not as effective as they could be simply because they are not implemented.  The primary reasons for this failure to implement are significant confusion regarding the best way to invest and dissatisfaction with the services being offered.  In some cases, it is just confusion and, perhaps, inertia that keep the plan from being implemented.  In other cases, a fast talking salesperson helped someone implement implement their by selling them something that was not actually compatible with the plan. 

After hearing various client stories about this, we decided we needed to take a more proactive role in helping our clients find implementation partners.  We looked at a number of alternatives and evaluated the varying needs of our clients.  The result is a team approach - a set of services based on the idea of a partnership with our clients and their investment managers.  In this partnership WJH staff help with oversight, communication, and plan update support.  The client chooses from a set of options regarding the mechanism for investing funds. 

It is critical to understand that our role in helping you implement your plan is simply to represent your interests.  We at WJH do not sell investments, nor do we accept commissions from people who do sell investments.  We do, however, work with you and the investment manager you choose to help insure your plan is being implemented in an appropriate and understandable manner.    

The result is that the management of your investment can fall into one of the following categories.

• Fee-based WJH partnership - In this case we work with a partner who handles the investment side of your plan.  We provide oversight of the overall relationship and investment plan.  Of course, we pay special attention to the tax ramifications of various investment transactions and help you avoid April 15^th tax surprises.  In this fee-based case, both the investment partner and WJH receive a fee calculated as a percentage of the account balance.  We have partnerships set up so that your overall investment costs usually do not increase when you use both WJH and the investment partner. 

• Non-fee based alliances - If you prefer more traditional, full service broker arrangements, we have experience with specific brokers and brokerage firms who provide this.  We do not receive any commissions or referral compensation from these brokers.  We provide optional periodic oversight of these accounts at our standard hourly fees. 

• Independent investment management - You may have a fee-based or brokerage based relationship already established.  Or, you may use a discount brokerage firm and handle your investments yourself.  We are happy to work with you in this case and provide advice and oversight as needed.

For information about specific firms or individuals involved in financial investment services, see the WJH Network - Investment Advice and Management page.

Financial Plan Consulting

Financial Plan Consulting

Financial Plan Consulting

Stock Option Analysis - Being located in Austin, Texas provides us with a lot of opportunity to work with clients holding stock options.  What we have found is that stock options can be a very valuable component of a client's assets, but they can also generate significant tax liability.  In fact, if not understood, options can even generate a significant tax liability if they have little actual market value.  Most people work hard to increase the value of their options.  We can work with you to make sure you keep as much of the value as possible.  It is important to understand the issues associated with options as early in the process as possible and to develop a plan to get the most value from the options.

Financial Plan Consulting

Insurance and Investment Analysis,  Demystification, and Pre-Purchase Review - Insurance purchasing and investing can be complex and risky activities.  We often see clients who have gotten minimal value from their investments.  A few simple examples include the following.  

• It is not uncommon for us to see tax clients who have paid significant brokerage commissions for a large number of security transactions that did them virtually no good.  Sometimes this is because their broker was just churning the account to produce commissions.  Other times it may be the result of a "program" that makes trade decisions.  Often the result is that the client has to pay the broker for trades that did not result in a profit, and their accounting fees are higher because we have to spend significant time to determine the basis, sales price, and the "wash sale rule" impact for the tax reporting of the various transactions.  This situation may have benefit for the commissioned broker, but it has negative benefit for the client.

• We often see clients who have purchased investment plans that have many hidden expenses and are much more beneficial to the seller's bank account than to the clients'. 

• We see clients who have purchased an annuity when their circumstances would have been much better served with a number of other investment vehicles. 

• We see clients spend money setting up trusts and other entities which are either set up incorrectly, incorrectly funded, or not needed in the first place.

This list could go on and on.  The bottom line is that you need someone who can take a look at opportunities, explain them to you in plain English, and help you understand the real costs and benefits.  Our Insurance and  Investment Analysis, Demystification, and Pre-Purchase Review Services focus on this.  We take the details of your opportunity and analyze the numbers to a) show you what it is actually going to cost over time and b) compare it to alternatives.  We present this in a simple to understand format that allows you to see the benefits and costs of any insurance or investment opportunity.  And, we charge a fixed fee so that you know exactly what your cost for us will be.

This service can be particularly helpful to individuals who are planning for the long term.  We have found it also to be useful in cases where a client is helping their parents through the maze of opportunities for insurance, especially annuity products.   

Financial Plan Consulting

LifeRecords^® Planning Aid - As personal, financial, and legal records grow in volume and importance over the years, the task of organizing such documents may seem overwhelming.  And yet, the importance of having vital records readily accessible cannot be over emphasized.

LifeRecords is a very cost effective tool developed by one of the leading companies that provides detailed training, analysis, and record-keeping products for lawyers and accountants.   However, instead of being designed to be used by the professional advisor, it is intended to provide you as an individual with a way to collect, categorize, and protect your data.

For more information see the LifeRecords FAQ page.

Financial Plan Consulting

ProfitCents Reports and Analysis - In an effort to bring you more value as your financial advisor, we have initiated a program to present your financial statements in an easier-to-read and more useful format.  We are very excited about this program - WJH ProfitCents Reports - because the reports provide a plain-language, easy to understand translation and analysis of financial statements.  These reports can be used with both business financials as well as personal financial data. 

The business-based reports highlight the areas of your business which are strongest, and those which may need improvement, as well as outline some of the ways in which we can help you to define and reach your financial goals. 

The personal version analyzes your personal situation and provides guidance regarding debt, retirement, and other areas.

For additional information about the reports and to see some examples, go to WJH ProfitCents Reports FAQ.

Business Plan Development - A well conceived and appropriately updated business plan is a real asset to a business if it is appropriately developed and actually used.  It is the map that defines where the business wants to go and provides value regardless of the size or age of the business.  We have experienced professionals who have been involved in the creation of numerous plans and who can help you create an appropriate plan for your company. 

For more information see the Business Plan FAQ page. 

Financial Budget Development - A key part of the decision process for a company involves the expectations and opportunities that can be defined and understood through the use of a financial budget.  We have the expertise and experience to create a financial budget that accurately focuses on your business segment and your specific circumstances.  We can also integrate the information with our WJH Accounting Online tools so that you can see how your actual operating results compare to the model and take appropriate steps to respond when there is a disconnect between your plans and the results.

Executive One-on-One - We know how difficult (and, frankly, lonely) it can be at the top of a company regardless of its size.  Our Executive One-On-One program provides an experienced executive with whom you can have a meaningful and detailed conversation about your company, its opportunities, its issues, etc.  See the Executive One-On-One FAQ page for more information.

ProfitCents Reports - In an effort to bring you more value as your financial advisor, we have initiated a program to present your financial statements in an easier-to-read and more useful format.  We are very excited about this program - WJH ProfitCents Reports - because the reports provide a plain-language, easy to understand translation and analysis of financial statements.  These reports can be used with both business financials as well as personal financial data. 

The business-based reports highlight the areas of your business which are strongest, and those which may need improvement, as well as outline some of the ways in which we can help you to define and reach your financial goals. 

For additional information about the reports and to see some examples, go to WJH ProfitCents Reports FAQ.

Merger and Acquisition Consulting - We can help when you are considering the right acquisition or merger partner for your business.  We can evaluate and consult in critical areas such as tax considerations, product or service compatibility, competitive position, financial impact, and cash flow.

Negotiation Support - Negotiation - some people love it; some people hate it - but sometimes it just has to be done.  The best way to negotiate is always from a position of strength.  We can help you develop that position by working with you to make sure you have the facts and the figures to support your position (and/or to understand and rebut the position of the person on the other side of the table).  An experienced negotiator once told us that 75% of successful negotiation was never being surprised.  We can help take the surprise out of negotiations.  See the Negotiations Tips page for more information on negotiation.     

Business Setup - In the start-up phase of a new business, we can help develop a list of tasks that need to be accomplished, make recommendations regarding the type of entity and tax considerations, help choose computer systems and components, help in setting up bookkeeping, train staff in areas such as computer bookkeeping, make recommendations regarding other professionals you made need to consult.   We can also critique your plan based on years of experience, help in your funding search, and, in general, help start your business in such a manner that you have the best chance to succeed. 

Business Succession - At some point it becomes time to consider the effective transition from an active role in your business to an inactive role.  It is critical that this transition be planned in advance if your everyone's needs are to be met.  Business succession planning covers a lot of topics - tax planning, financial planning, strategic direction, marketing the changes, etc.  We can help by providing advice and counsel at this critical time.