Although every business is unique to a certain extent, they all still face many of the same challenges. The following case study illustrates how one local small business overcame some of those challenges with the help of the Benjamin H Johnson CPA firm. We hope that if you find yourself in a position similar to the business described below, you will allow us to help you as well.
Martin Monument Company is a business based in Lunenburg County that creates personalized cemetery monuments and public, church, and business stone products for customers in Virginia, North Carolina, and Maryland. Originally started in 1977 by Charles and Lottie Martin, the business is now operated by their son Ken and his wife Jane. The company prides itself on delivering a high quality of workmanship at an affordable price, and that commitment to excellence has allowed their business to grow steadily over the years.
Due to the expansion of their customer base, Ken and Jane were experiencing some growing pains. They had more transactions to track and a larger payroll to manage, but they didn’t have efficient systems in place to handle all of that. They contacted the Benjamin H. Johnson CPA firm for assistance.
Ken and Jane began by doing a consultation with Ben so he could learn everything he needed to know about their business. Based on their discussion, they decided that the best solution would be to install accounting software on the business’s computer, set up a chart of accounts, and train the staff of the business on the use of the software. In addition to accounting, the software would also allow the company to print vendor and payroll checks. The software generates monthly financial reports for the business and is expandable as the business continues to grow.
In addition to setting up an accounting system for the business, Ben recommended that the business reorganize as a S-corporation instead of a sole proprietorship, both to protect the personal assets of the Martins and to take advantage of certain tax benefits available to that type of legal business entity. Ben helped the Martins plan the changeover, and the new entity was formed on January 1st of 2016.
Thanks to Ben’s help, the Martins now have an accounting system for their business that efficiently reports important information. The financial statements generated by the system will help them with quarterly tax planning and will also allow them to apply for a line of credit if needed. The new legal entity for the business protects the Martin’s personal assets from creditors and gives them added credibility with potential lenders.