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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.

NCACPA Day of Service 2018

LBA Haynes Strand, PLLC participated in the North Carolina Association of Certified Public Accountants (NCACPA) Annual CPA Day of Service on September 21, 2018. Our employees volunteered their time with various organizations throughout North Carolina and focused on giving back to our local communities.

Our Mount Airy office focused on collecting canned food in order to support Yokefellow Ministry. Yokefellow assists others in need during times of crisis. One way they provide assistance is with food. There were collection boxes set up in the Mount Airy office for collections throughout the week and our team collected additional donations at Lowes Foods on Friday, September 21st.

The Matthews office of LBA Haynes Strand held a collection drive for pet food and supplies to donate to the Humane Society of Charlotte. Our team set up a table at Lucky Dog Bark & Brew on September 21st to collect remaining donations from those who were not able to stop by our office during the week. We had great participation from both our internal staff, clients, and members of the local community.

Our Greensboro office volunteered their time at BackPack Beginnings on September 21st by packing bookbags. BackPack Beginnings’ mission is to deliver child-centric services to feed, comfort, and clothe children in need.

Not only did some of our Greensboro team volunteer at Backpack Beginnings on Friday September 21st. We also had a few of our employees give back at the Out of the Garden Project the day before. You can read more about their efforts on the NCACPA blog!

The NCACPA Day of Service is one of the many ways our team gives back throughout the year. We have an annual LBAHS Day of Service and are always looking for new ways to become more involved in the community.

Dental Practice Lifecycle: Sale of Practice & Retirement

After the start-up and acquisition phase and years of hard work growing your own dental Practice, you may be ready to hang up the gloves and retire but are not sure where to start.

The answer is to build a plan that starts years before you actually plan to retire or sell.  Having this conversation with your Practice advisory team in advance allows us the opportunity to guide you to that point and help achieve the maximum results for you and your Practice.

During this pre-retirement/sale time we find and develop answers for the hard questions like “What’s my Practice really worth?” and “How much cash will I receive from the sale?”  Using the answers to these questions we review options and prepare a plan to guide you to your best outcome.

Our Capital Advisors team has the ability to provide sell side representation to Practice owners in order to focus on finding qualified buyers. Over the years we have developed a process that allows us to find our clients the “right buyer” that may otherwise not have been found. This “right buyer” is the one who sees the most value in your Practice and is able to provide you, the seller, with the right offer.

Remember – the end of your dental Practice lifecycle is the beginning of the next generation’s lifecycle!

Continue checking back for our continuing dental blog series. Over the next few months, we will address subjects such as buying a dental practice, profit & loss statement explanation, and how sales tax impacts dentists, along with many other informative topics.

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Dental Practice Lifecycle: Growth & Maintenance

After the start-up and acquisition phase is complete and you have a regular patient base established, you’ll find yourself in the growth and maintenance phase.  At this point, you may be wondering how your Practice compares to others in the industry or maybe you’re ambitious and curious about growing into a two-Practice owner (three-Practice, four-Practice or more)!

As you progress through your Practice ownership lifecycle, benchmarking becomes increasingly important.  This helps to provide information on areas your practice may be able to improve upon.  For example, did you know the average dental Practice pays about 18.4% of their revenues in clinical wages?  This means if your Practice collects $50,000 in a single month, about $9,200 should be paid in wages to your hygienists and assistants that month.  How does your Practice compare?  Reviewing these industry averages monthly can help guide decision making within your practice.  We will go into more detail on these averages later in this blog series.

If owning one Practice is going smoothly, you may be curious about the possibility of purchasing/starting a second Practice.  Our team is able to work alongside you to review your current Practice’s financial standings and the different ways you can grow into a two-Practice owner.  We work to answer questions like ”How will hiring an associate at my first practice impact my bottom line while I’m working at the second practice?” and  “Can the cash flow of my first Practice help support the second Practice?” along with many others.

Our dental team has worked to develop various financial tools to help measure your practice against others and its potential for growth.  These tools include our monthly industry standards comparison to your practice and our Practice Scorecard which can be used to review options for the purchase of additional Practices.

Check back next week for the third and final phase of the Dental Practice Lifecycle: Sale of Practice & Retirement.

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5-Time Inc. 5000 Honoree

Coming in at #3267 on the list with a 120% 3 year growth rate, LBA Haynes Strand has made the Inc. 5000 list for fastest-growing private companies in America for the 5th time in a row! We are proud of our team and this great accomplishment.

List Details

The list represents a unique look at the most successful companies within the American economy’s most dynamic segment—its independent small businesses. Microsoft, Dell, Domino’s Pizza, Pandora, Timberland, LinkedIn, Yelp, Zillow, and many other well-known names gained their first national exposure as honorees on the Inc. 5000.

“Making the Inc. 5000 for the fifth year in a row demonstrates the forward thinking ideas and growth strategies our firm continues to implement year after year,” says John Bly, Principal and CEO at LBA Haynes Strand.  “Our team continues to focus on our growth oriented core value and it can be seen through this accomplishment. We know how hard it is to be recognized on this list and are proud to be a 5-time honoree.”

Not only have the companies on the 2018 Inc. 5000  been very competitive within their markets, but the list as a whole shows staggering growth compared with prior lists. The 2018 Inc. 5000 achieved an astounding three-year average growth of 538.2 percent, and a median rate of 171.8 percent. The Inc. 5000’s aggregate revenue was $206.1 billion in 2017, accounting for 664,095 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found on INC.

“If your company is on the Inc. 5000, it’s unparalleled recognition of your years of hard work and sacrifice,” says Inc. editor in chief James Ledbetter. “The lines of business may come and go, or come and stay. What doesn’t change is the way entrepreneurs create and accelerate the forces that shape our lives.”

Methodology

The 2018 Inc. 5000 is ranked according to percentage revenue growth when comparing 2014 and 2018. To qualify, companies must have been founded and generating revenue by March 31, 2014. They had to be U.S.-based, privately held, for profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2017. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2014 is $100,000; the minimum for 2017 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Companies on the Inc. 500 are featured in Inc.’s September issue. They represent the top tier of the Inc. 5000, which can be found on INC’s website.

Dental Practice Lifecycle: Start Up & Acquisition

Every dental Practice follows its own unique lifecycle, however, there are a few main phases it will pass through as it continues to grow and evolve that we’d like to focus on:

  • Start Up & Acquisition
  • Growth & Maintenance
  • Sale of Practice & Retirement

Before you enter any phase, we highly encourage any future Practice owner to seek out professionals who specialize in the dental industry.  There are many pain points that can be avoided by working with a CPA, attorney, banker, etc. who specialize in the dental industry and can guide you in the right direction from step one.  Once you have your Practice advisory team in place, it’s time to look at the next big questions: Do I want to start from scratch or purchase an existing Practice? And where will my funding come from?

Our dental team works with doctors on both sides of the start-up. With future Practice owners looking to start from scratch we develop a business plan to help obtain bank financing for the next steps in the ownership process. This document gathers and presents information related to many aspects of your future Practice: demographics of your proposed location, expected revenues and expenses, and a breakdown of desired loan funding just to name a few. Your business plan is what provides information to banks to show your Practice is a worthy investment. More importantly, it gives you a guideline and stepping stone to launch your Practice with confidence.

If you’d prefer to purchase an established Practice, our dental team works with you to find purchase options and review these options through our Practice Scorecard Analysis and due diligence process. Much like the Due Diligence period of buying a house, this is where you have a chance to review various aspects of the Practice and determine if it’s right for you. Many items are looked at during this but we help our clients to focus on what the historical financial data of the Practice shows and how it will apply to you, your future ownership of the Practice and if this coincides with your ownership goals.

Do you have your specialized team in place? From start-up services to exiting your practice, our team serves as strategic business advisors that are there with you every step of the way.

Next week, we will be discussing Phase 2: Growth and Maintenance.

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Dental Practice Lifecycle: Introduction

Over the next few weeks our dental team here at LBA Haynes Strand will be presenting a series of blog posts related to the lifecycle of a dental Practice. Items we will be highlighting include:

  • An overview and introduction to the stages within the dental Practice lifecycle
  • Key questions to ask when buying a dental Practice
  • Selling your dental Practice

As we move through these topics we will strive to provide up to date, informative and helpful information for today’s dental Practice owner whether you are in the first stages of starting your Practice or looking at retirement.

In the meantime, we would like to provide some additional information about a few members of our dental team here at LBA Haynes Strand:

Brad McKeiver, CPA, MBA, is a principal with our firm and leader of our Dental niche. He works extensively with dental professionals and Practices as a strategic business advisor to help our clients prosper. His name may sound familiar as Brad is active in the community through speaking and networking events. Through Brad’s leadership, our team has been able to lessen the tax and accounting burdens for our dental clients so that they can get back to focusing on their patients and their Practice.

Carrie Culpepper works as the lead dental accountant within our team. Using her extensive experience with QuickBooks Online she works alongside our clients to produce meaningful, reliable reporting to assist in business decisions and other areas of dental Practice ownership. Carrie relies on her background in theatre to help clients use their numbers and reporting to “tell the story” of their business and their success.

Katie Sabin is the newest member to our dental team. Katie focuses on ensuring the accuracy and completeness of the financial statements for all of our dental clients. She primarily concentrates on preparing monthly reports for clients in order to deliver them the most precise and up to date information for their business. Her enthusiasm and eagerness to expand her knowledge on the dental industry makes her a great addition to our team!

We look forward to sharing our knowledge with you as we work through the lifecycle of a dental Practice.

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LBAHS Day 2018: Out of the Garden Project

“I firmly believe the greatest responsibility we have as a firm is to serve our clients, our people and our community. Working with the Out of the Garden Project is one of the most fulfilling efforts in our year.”- Dave Recchion, Office Managing Partner, LBAHS Greensboro Office.

This year, LBA Haynes Strand got the amazing opportunity to go back to the Out of the Garden Project (OOTGP) to help out for a second year. Our LBAHS Day is an annual community service day where we close our office doors and focus on giving back.

Why Out of the Garden?

The Greensboro and High Point area is ranked #9 in the nation for food insecurity. Over 48,000 students in this area receive reduced price or free breakfast and lunches at school. Many do not know where their next meal is coming from after school and on the weekends. This is how founders, Kristy and Don Milholin, got the idea to start the Out of the Garden Project. They noticed children experiencing food insecurity at their children’s elementary school and felt called to make a difference.

OOTGP started as a small weekend initiative supplying 10 bags to families in the Piedmont Triad area. It has grown into a program now supplying over 1250 bags of food each weekend and operating 22 mobile food pantries.

The LBAHS staff jumped right in – cleaning the warehouse, sorting donated food, and packing bags for families. The atmosphere was filled with love and support as each team member realized the impact they were making in this community.

We are fortunate to have played a small part in this company’s great mission, “to provide tangible signs of love so that no child goes to bed hungry.”- OOTGP

To learn more about Out of The Garden Project and how you can help, CLICK HERE! We were featured in News & Record– “Day of service project helps food program

South Dakota v. Wayfair, Inc. Tax Implications

On Thursday June 21, 2018, the Supreme Court issued its much anticipated opinion in the landmark case of South Dakota v. Wayfair, Inc., fundamentally changing the sales tax landscape in the United States.

The Case

South Dakota enacted a law requiring out-of-state sellers to collect and remit sales tax as if the seller had a physical presence in the state. The law only applied to sellers who, on an annual basis, delivered more than $100,000 of goods or services into the state or engaged in more than 200 separate transactions for the delivery of goods or services into the state.

South Dakota sought to enforce the law against Wayfair, Inc. and other online retailers who exceeded the limits of the law. Each of the retailers had no employees in the state and owned no real estate in the state.

Based on prior precedents (National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U.S. 753, and Quill Corp. v. North Dakota, 504 U.S. 29), the lower courts ruled that the law was not enforceable due to the lack of substantial nexus* with the state under the “Physical Presence” test outlined in these cases.  That test allowed states to require retailers to collect and remit sales tax if the retailer had a physical presence (e.g., employees or operating an office) in that state. The mere shipment of goods into the state did not satisfy the physical presence test.

The Result

In a 5-4 verdict, the Supreme Court explicitly overruled the prior cases and held that, while physical presence provided substantial nexus, such nexus also included a certain level of business (delivery of goods or services) conducted within the state.

The Court found that, in this case, the nexus is clearly sufficient based on both the economic and virtual contacts the retailers have with South Dakota. The state law applies only to sellers that deliver more than $100,000 of goods or services into South Dakota or engage in 200 or more separate transactions for the delivery of goods and services into the state on an annual basis.  This quantity of business could not have occurred unless the seller availed itself of the substantial privilege of carrying on business in South Dakota.  The retailers are large, national companies that undoubtedly maintain an extensive virtual presence.  Thus, the substantial nexus requirement is satisfied.

The Implications

Will you now be required to collect and remit sales taxes in states to which you deliver goods or services?

South Dakota v. Wayfair, Inc. allows all states to enact laws requiring out-of-state sellers to collect and remit sales taxes on sales to customers in that state provided the law applies a safe harbor to those who transact only limited business in the state.  While South Dakota chose an annual $100,000/200 transaction limit that the Court found sufficient, the Court created a level of uncertainty by leaving it up to the states to decide what safe harbors might be sufficient.  We expect we will see a great deal of activity as various states make their statutes consistent with the court’s ruling so nexus can be asserted.  For states that already have similar statutes in place, it is unclear whether they will set a future date for enforcement or take the position that the statute has been enforceable since it was put in place.

*Nexus – When referring to sales tax, means that a company is connected to a state and because of that connection, a company must collect tax, fill out a tax return, and send the collected tax to a state.

Given that sales tax laws are established on a state-by-state basis, all businesses making sales of goods or services to customers in multiple states should evaluate the impact of the Court’s holding. 

This ruling is just the beginning of the process and over the coming months we will be monitoring which states are adopting these types of nexus rules and when they will become effective. If you would like more information on how this may impact your business, contact us today.