August 29, 2013

Advising a Legendary Athlete’s Estate

Valuing an athlete’s or historical figure’s accumulation of documents, memorabilia, playing equipment, and more is a labor intensive and eye-opening task. At Anders, we currently have the distinct privilege of valuing the historical assets of Stan Musial.

Our role focuses primarily on how to accurately value the estate’s historical property, the memorabilia, as well as the intellectual property now controlled by the estate.  We also guide heirs through the sales options for maximizing these properties.  

Valuing the Memorabilia
While any estate shares common factors for successful management, those of athletes, or likewise, entertainers, artists, and historical figures, can require much more specialized advisors for the disposition of their unique property. In an athlete’s case, this includes items ranging from statues to jerseys and game balls to many other treasured items that they accumulate over their careers.

We have provided similar services to the heirs of Dr. James Naismith and Max Scharf and others. In all estates, ancillary products can also be created through a licensing program utilizing the estate’s control of the decedant’s image after death.  Biographies, artwork, and commemorative products honoring the deceased have all been projects that we have advised have undertaken.  Typically, the monetary goals in these projects have been secondary to the idea of continuing the public interest in their relative.

To begin the process of valuing any estate at Anders, we generate a complete inventory in order to get a grasp of the scope of the estate’s collection.  Once completed, the process of preparing the valuation can begin.  Premiums for the provenance of an item coming from the estate are commonly applied to items that have a fairly standard value.  Just how big those premiums can be, is easily seen in the sale of the estate of Jackie Onassis.  Golf clubs of her husband bringing over $770,000 and a cocktail shaker selling for $20,000 brought the collection’s final sales total to over $34 million on a pre-sale estimate of $4 million.

Estate Planning Tool
While the valuing of sports and entertainment memorabilia is typically outside what is typical in a CPA firm, and one of the reasons our group is unique; estate planning is certainly a more commonplace service.  A trend we have noticed over the past decade has been for athletes and historical figures to address the selling of memorabilia, while they still have some control in their estate planning.  Utilizing their much more specialized knowledge of their collection while they are still alive provides advisors such as Anders with an immense benefit.  Such input about the collection ultimately generates more revenue for the heirs.

Please check back to this blog before the end of September for more information on when and how to bid on some of the Musial one-of-a-kind items. 

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August 27, 2013

Anders Climbs to #124 on INSIDE Public Accounting’s Top 200 Accounting Firms List

Anders rose 33 spots on the Top 200 Accounting Firms List from 2012 to 2013. The jump is largely due to the January 1, 2013 merger of Anders Minkler & Diehl LLP and Huber, Ring, Helm & Co., P.C.  The Platt Group, publishers of INSIDE Public Accounting (IPA), made the announcement.

In this fourth annual ranking of Beyond the IPA 100, this list picks up where the IPA 100 left off, and identifies the largest firms in the nation ranking from No. 101 to No. 200. The firm made its debut on the list in 2011, coming in at 159; last year climbing two spots to 157.

For the most recent fiscal year, IPA 200 firms range in size from $14 million to $30 million, and from 60 to 200 staff. As a group, they account for over 11,000 staff across 300 offices, generate $2 billion in revenues.

According to the IPA, “The Top 200 averaged 4.3% top-line growth, and 3.7% growth in the bottom line. A full 20% of the IPA 200 derives more than 30% of revenues from non-traditional services, providing powerful and profitable niches for these firms.

In addition, similar to their IPA 100 peers, the IPA 200 are also engaged in acquisitions to grow in size, scope and capability, with over 25 mergers reported for the group last year, pulling over 400 staff and $40 million more to the aggregate numbers of the group,”

More than 500 firms participated in the IPA annual Survey and Analysis of Firms this year, along with many CPA firm associations contributing to the search to identify the IPA 200.

Inside Public Accounting reports and analyzes the news, trends, strategies and politics that affect the nation’s public accounting firms, and provide information and resources to compete and operate more profitably.

 

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August 13, 2013

Startups Tie Dreams to Great Advice and Well-Crafted Business Plans

Many talented entrepreneurs have invested their life savings launching a great business idea, with hopes and visions of becoming the next great rags-to-riches story.  They dream of being their own boss, providing more comfort for their family, having more time for vacations, maybe even buying that big boat they always wanted.  Unfortunately, these dreams, for the majority of entrepreneurs, remain only a dream due to lack of knowledge of how to go about starting a new business.  Even worse, many others end up with a lost savings, a lot of debt, or maybe even the process of bankruptcy due to a failed venture.

Business startups and businesses in general, do not necessarily fail due to bad business ideas, or unwanted services.  The majority of business failures occur due to poor planning, inadequate implementation of the business plan, or simply no plan at all.  These plans are not developed because most beginning entrepreneurs, despite their product or service knowledge, are simply not aware all that is involved in taking a product or service to market.

However, when appropriate counselors are engaged to guide and walk you through the process, the probability of success increases dramatically.    Those advisors, of course, need to be experts in business startups.  They will be able to plan your process, step by step, and help you implement the steps where:

  • Processes are developed
  • Expectations are established, and
  • Parallels to your objectives are revealed.

Every business plan must be developed and mapped with well defined segments that will allow proper monitoring and evaluation of the progress from start to finish.  While developing the plan, make an evaluation on whether each step produces the required results that moves you closer to your goal.  Once the written business plan is completed, each step should be emulated, as a walk through, to again evaluate that the process flows seamlessly from one segment to the other, and that the intended objective will be accomplished. This mapping process ultimately increases the chance of success, and in today’s economic environment choosing the right advisors, that can share in your motivation for success, is critical.

Anders has a team of advisors with the expertise, and the motivation, to help your business startup process. Contact us for assistance in achieving the next big dream.

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August 6, 2013

If Your Accounting Firm is Organized as a Partnership, IRS Requires 1099s for Fees Paid

The IRS requires businesses, self-employed individuals, and not-for-profit organizations to issue Form 1099-MISC for professional service fees of $600 or more paid to accountants who are not corporations.

Accounting Fee Treatment for Self-Employed Individuals

For self-employed individuals, it is common practice to allocate portions of accounting fees to different schedules on an income tax return.  The IRS adds some complexity due to the fact that the business portion of the accounting fees requires 1099 reporting, while the personal portion is not reported.  This subject takes on added importance because the IRS now asks on every business income tax form whether you made any payments that require form 1099 and whether you filed the required 1099’s.

Also an added note for security:  Self-employed individuals who use their social security number can obtain a business federal ID number so that they issue 1099’s with the federal ID number instead of handing out their personal social security number.

Read about requirements for filing Form 1099-Misc.

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