How to Reduce Costs and Extract Capital Using Proven Techniques and Vendors to Help You

Lower taxes due and claim refunds for post years’ taxes paid.
1. Claiming refunds for taxes paid in previous years
  1. If losses incurred in 2010, “net operating loss carry back” can be filed. Tax forms can go back for at least two years to claim taxes paid in those years. Applies to business and individuals. Check with your tax advisors on how much and how to do this.
2. Use “cost segregation study” for buildings owned whether new or older buildings.
  1. Identifies “personal property” group within real estate assets and separating them out for tax purposes.
  2. Shortens depreciation time of assets resulting in higher deductions.
  3. Includes pieces of a building such as wall coverings, carpet, accent lighting, electrical and heating systems, sidewalks and landscaping parking lots, and other non-structural elements and indirect construction costs.
  4. Can do a onetime “catch up dedication” to write off over current income – 27.5 + 39 year lives –> 5-7-15 years.
  5. May turn an “income year” into a “loss year” to use NOL’s.
Look for “tax credits” in the business activity that you currently perform.
1. Research and Development Credits – used to be only for technology and manufacturing companies, but enhanced to include adding new equipment, developing improved business processes, improved facilities, automating and streamlining.
2. Investment Tax Credit – therapeutic discovery credits renewable, energy investment tax credits (or grants).
3. Job Training Tax Credits
4. Low Income / Affordable Housing Credits
5. Movie Production Credi
6. Land Conservation Tax Credits
Workman’s compensation rate audit – contingency. Good chance you are being overcharged. Errors accure to the insurance company (business classification errors, experience modifiers, claims reserves overstated payrolls, challenging audits)
Telecommunications pricing – cost of carrier (dial tone) lines, VOIP, data, SIP trunks, metro Ethernet – changing fast. Reprice and review phone/data/video connection costs. New vendors/pricing/technology capacity changes the game and lower costs.
Risk management review – all insurance products and benefits should be repriced and bid at least every other year. Trend is lower costs.
Vendor negotiation – everyone is under pressure and many willing to extend terms or lower prices to keep business. Where you can, ask for better prices or terms.
Energy Savings – waste and recycling savings – can be reviewed by experts.
Virtualize (automate) every process you can – accounting, filing & document management, banking, purchase order inventory management, delivery tracking, freight & handling, customer service. Weight -> Technology. Reduce need for personnel.