Thank you to those who were able to join the call. I also appreciate you indulging me with my request for feedback on GAWDA. Hope to see you all at the SMC (maybe WMC if we can get it moved to the colder months—doubtful, but I’ll fight the good fight and bring it up).
Selecting an Accounting Firm:
- Most work with a local firm
- Nobody is aware of a specialist for welding/gas distributors when it comes to accountants
- Some are in the process of changing firms or conducting an RFP
- At times, we feel like accounting firms are just checking a box with their service—others receive a more friendly and proactive approach from their firm
- Challenges arise when the ownership group/family uses the same firm for investments or other services, making it trickier to sever ties with the business
- Some use one firm for taxes and a different firm for the review
- A bigger firm can be helpful at times for project-specific things (Cost Seg). There is likely someone who specializes in this, and your direct contact can point you to another within the firm who can help
Buildings/Properties/Asset Ownership:
- Three options for buildings:
- Leasing buildings from a third party
- Separate entity (same ownership) with a triple net lease
- Business owns the buildings
- Most have the buildings in a separate entity and triple net lease them back to the company whenever they can, or the company owns the buildings outright
- Some have multiple structures from the above (lease some, own others, etc.)—a legacy situation left as is, avoiding a tax event or too high of a cost basis
- Sometimes a market study is needed to ensure fair rental values or, if selling the building, to ensure the values are fair
- Leases are important even if they’re between common ownership
- It is important to list all of these entities on the insurance policies
- Some have a separate entity for cylinders or bulk tanks—usually as another means to get cash out of the business, as part of succession planning, or as a way for heirs/top performers to receive additional compensation
Upcoming Dates
Our next meeting is on Wednesday, 12/17, at 11 a.m. EST. If you don’t have the invite, please let me or Tony know.
Future topics to be covered are:
- How we treat cylinder assets (might be quick)
- Fixed asset we depreciate?
- All Things Certificates (insurance nerd in me says, “YES!”)
- Voice over IP
- Union Negotiations
Have a great finish to your week — we’ll see you in a couple of months!
Will Cray
Will Cray is a Vice President for Horton’s Select Business Division. In this role, Will is responsible for providing Horton clients with comprehensive, cost-effective, and innovative solutions to meet their most complex, risk-related challenges and opportunities.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
