Asheboro Expansion

LBA Haynes Strand PLLC Acquires Asheboro, NC Office

LBA Haynes Strand is excited to announce the acquisition of the Asheboro office of Cherry Bekaert LLP. With this acquisition, we will expand our firm’s footprint to maintain the Asheboro office location. With nearly 80 professionals across North Carolina, clients will have access to local resources and immediate support.

“Our firm has been focused on the middle market client base for more than three decades,” said LBA Haynes Strand CEO and Principal, John Bly. “We are excited for the opportunity to add quality team members in the Asheboro market, along with a strong client base. This is the next step in our firm’s growth plan.”

Cherry Bekaert partner, Brad Crumpler, has announced his retirement and will assist our firm through the transition period. Elizabeth Scott (Senior Associate) and Donna Smith (Administrative Assistant) will be joining the LBA Haynes Strand team.

Principal Chris Bunting will continue to lead the firm’s assurance department while principals Dave Recchion and Courtney Ageon will build and maintain local relationships in the Asheboro community. In addition, the Greensboro office team will be readily available to support all client needs.

Since its inception, the focus of LBA Haynes Strand has been to become a partner in our clients’ success. Cherry Bekaert clients will be able to continue working with high quality professionals committed to delivering excellent client service.

LBA Haynes Strand expanded into Winston-Salem in January 2019 and looks to grow more across North Carolina and the southeast.

dental accounting mistakes

Dental Accounting Mistakes

Simple accounting mistakes can cause major financial problems for a growing dental Practice. In order to avoid these, Practices must have an accurate and well-maintained accounting system in place.

Understand the differences between cash flow and profit.

Many dentists and in-house accounting staff do not understand financial reports and may wrongly assume profit equals cash available. This mistake could result in a Practice owner making purchases and incurring penalty and overdraft fees. For this reason, it is important to know the different between the two.

Profit is the result of revenue less expenses for a certain period of time. Cash flow is money moving in and out of the business from the beginning to the end of a month. If a Practice owner wants to know how much money the Practice has available, they are looking for the cash flow number.

Do not accidentally record transactions in a previous period.

It is important to “close the books” on a monthly basis. A common mistake is to accidentally enter transactions from a previous period. This will result in balance adjustments that do not match the bank balance or financial reports. If this error goes unnoticed, all future reports, tax documents, and cash figures will be incorrect. The mistake can become a larger issue and result in misrepresentation of cash and penalties from the IRS.

Use an industry standard chart of accounts.

When building your accounting system, a dental accountant should set up and track accounts according to dental industry standards. Our dental team focuses on establishing a dental specific chart of accounts. This way, we can provide the insight necessary to streamline and grow your Practice.

Work with a dental specific CPA.

It can take a while for owners to notice mistakes made by inexperienced accounting employees. For example, they may not realize a mistake has been made until they receive high tax bills, notice incorrect cash account reconciliations, or theft occurs. For this reason, it is crucial for Practice owners to work with an experienced dental specific CPA.

Our team of professionals wants to help you save time, money, and implement an effective accounting system. To learn how we can support your Practice, contact us!

Top 10 Mistakes in Mergers and Acquisitions

The merger and acquisition process can seem daunting to someone who has no experience and isn’t working with a broker. Over the years we have heard a number of horror stories and have compiled the following list of the top 10 mistakes in mergers and acquisitions:

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Buy a business

It’s a Great Time to Buy a Business

As you look to purchase a business make sure you are doing it for the right reasons.  Don’t just say, “I want to get rich.”  That way of thinking probably won’t cut it, unfortunately. You need to make sure you have wisdom, passion, and a solid plan for your new business. Do your due diligence!

There are a number of factors that make this the best time in history to buy:

  • Supply and Demand
  • Capital Availability
  • Larger Companies Are Worth More
  • Strategic Savings

Supply and Demand

As baby boomers exit their companies, there are more sellers and less buyers which makes the selection of businesses to buy better than it has been in the past. Many Capital Advisors that provide buy side searches or sell side representation have access to websites that list companies for sale. This access makes it easy to find the appropriate demographic, niche, and value that buyers are looking for. When a business owner comes to a Capital Advisor for guidance, they receive information on numerous companies interested in selling and have more choices than they would have had in the past.

Capital Availability

Private equity groups, private investors, and banks have more money they want to put to use in the marketplace than ever before. Additionally, interest rates are at historic lows so borrowing capital to buy a business can be done efficiently.

Larger Companies Are Worth More

Acquiring 1 to 3 competitors and building your current company may change the multiple you get on an exit from 4x to 6x of EBITDA. Consider buying a smaller business for 3x the earnings. Later as you combine it with your business and resell the larger business in the future, you may be able to get a rate arbitrage on your purchase. Thus, the same business you bought for more than 3x. Some call this the buy-then-sell strategy.

Strategic Savings

If you own a company and acquire another one in the same industry, you could save 5 to 25 percent on expenses for the combined company. This means you could add more profit and cash flow than the prior owner. There are many expense categories that overlap. When the two companies are combined, you will not have to pay twice.

LBA Haynes Strand Capital Advisors can help you sucessfully buy a business. Contact us for a no-cost consultation!

529 IRA

Saving for College: Roth IRA or 529 Plan?

College is expensive and the cost continues to rise each year. As a parent, you want to be prepared and start saving for this expense early. There are a few tax-smart options to consider when saving for this expense – a Roth IRA or 529 plan. When you utilize an account that offers a tax break, you have the ability to stretch your money further. There are pros and cons for both of these options. Review the details to help decide which account would work best for you and your family.

Basic Overview
The Roth IRA was created to encourage people to save for retirement. The difference between a Roth IRA and other traditional retirement accounts is the ability to withdraw contributed money any time, free of taxes and penalties. 

529 plans are similar to Roth IRAs but were intended for people to save for college instead of retirement. As long as the money withdrawn from the plan goes to qualified education costs, you will not owe taxes or penalties.

Roth IRAs
While you are able to withdraw contributed money, keep in mind that you will owe taxes and a 10% penalty on any investment earnings you take out of this account before age 59 ½. However, an exemption could work in your favor. If you withdraw money to pay for qualified education costs, you will not owe the 10% penalty, but you will still owe taxes on any investment earnings withdrawn.

Many people prefer the Roth IRA because of the flexibility and variety of investment choices. If you aren’t 100% sure your children will attend college, this may be option for you. That way, you can save the money now and decide what to utilize it for later. 

529 Plans
While you will owe taxes when withdrawing investment earnings from a Roth IRA to pay for qualified education costs, you will not face the same dilemma with the 529 plan. However, if you withdraw money from a 529 plan and it goes to another purpose other than education, you will owe both taxes and a 10% penalty on investment earnings. With this being said, it may seem like the Roth IRA is the way to go just in case your child decides to forgo college. Here are a few more factors to consider:

  • Does your state offer a 529 tax break and a good 529 plan option? The deduction or credit is like free money.
  • Are you going to need financial aid? Roth withdrawals generally count as income when completing the Free Application for Federal Student Aid (FAFSA). Having more income translates into receiving less aid.

You should always consult a professional before making any financial decisions. We can help. Contact us today!

Community Service

LBAHS Day 2019: Second Harvest Food Bank

Each year, our office doors close to provide employees with the opportunity to give back to a local organization. We call this “LBAHS Day.” This year, LBAHS Day took place at the Second Harvest Food Bank of Metrolina (SHFBM). This organization strives through education, advocacy, and partnerships to eliminate hunger. They do this by the solicitation and distribution of food throughout the Charlotte metro area.

Our LBAHS staff looks forward to this day each year. They jumped right in to help clean, organize, and sort donations throughout the warehouse. Kasey Mayfield, an associate, describes, “Despite being at different offices most days, we all got into an efficient rhythm while inspecting and sorting together. At one point, we had to organize the largest bin of canned goods I’ve ever seen. It started with five of us sorting but an assembly line formed and we knocked out the whole bin in around 30 minutes! Knowing there was a whole team of people there to give us help was an awesome feeling.”

Brandi Dunn, a senior associate, summarizes the day by saying,”It’s always fun to take a break from the office and able to help the community! I am glad our firm sees the value in this.”

To learn more about Second Harvest Food Bank and how you can help, click here!

In both 2017 and 2018, our team volunteered at Out of the Garden Project in Greensboro.