Thursday, October 26, 2017

TRUSTED ADVISORS WILL NOT BE REPLACED BY ROBOTS

Almost daily, analysts appear on CNBC predicting artificial intelligence will soon kick millions upon millions of Americans to the unemployment line, including many white-collar professionals such as financial and business advisors.  I am amazed at how little support these analysts provide to back their doom and gloom predictions.

Here is a perfect example.  Assume you are looking to start a new business.  Here are some of the questions you would typically discuss with a trusted advisor.  What problem does your product solve?  How to best test the demand for your product within the targeted market?  What are the benefits/risks of bringing in additional partners?  How should you structure the business?  How should you price your product?  What is your breakeven point?  What clauses should be included in the operating agreement as it pertains to your fact set?  How much capital will you need?  What assumptions will apply to your pro-forma financial statements?  How to best present your business case to secure financing?  How should you structure the management of your business?  How should you structure the compensation for your employees?  And the list goes on…

Why this will not be the case.  It is not possible to program a robot to provide correct answers to these questions.  In fact, it is impossible for anyone, human or not, to provide correct answers to these questions.  The role of a human advisor is to help guide the business owner.  There are many human elements at play when answering the above questions.  I do not believe we will ever create artificial intelligence that replaces human intuition.  The ability of AI to calculate a trillion calculations in a fraction of a second does not equate to solving the riddle of the human being. 


If you need trusted counsel to help manage your finances, and you want it from an actual human being, then you can trust the advisors at Sutton-McCann & Company to help guide you.

Nick Wold, CPA

Tuesday, June 13, 2017

STARTING A NEW BUSINESS? UNDERSTAND YOUR TAX OBLIGATIONS

If you are planning to open a new business then make sure you have a clear understanding of federal, state and local tax obligations.  Many factors will influence the tax law applicable to your business.  Where will your business operate?  What types of goods and services will you sell?  Who will be your customers?  What is the legal structure of your business?  Does the business entity directly incur federal income tax or does the income pass through to your personal tax return?  Will you have business partners?  Will you have employees?  What type of property will be owned by the business?  And the list goes on. 


Rather than spending your valuable time as a new business owner trying to sort out the tax implications of the above questions, I would recommend seeking counsel from our team of trusted business advisors at Sutton-McCann & Company.  We will make sure your new business is in compliance with all taxing agencies.

Nick Wold, CPA