CPA Practice Advisor

NOV 2018

Today's Technology for Tomorrow's Firm.

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10 NOVEMBER 2018 ■ BUILDING YOUR NICHE PRACTICE Each month we explore the advantages and intricacies of developing and growing a niche practice. This month we're examining what it takes to serve the accounting and business needs of veterinarians. How to Market Your Firm to Veterinary Clients By Becky Livingston The trick to marketing to veterinarians is to develop and share quality content along with information about your proven services. Sounds simple, but it can quickly go to the dogs if mismanaged. Here is a multi-pronged approach to aid in branding, to generate business, and to maintain relationships. Pawsitive Marketing Tactics for= Veterinary Clients List Building This is probably the hardest step for most firms to tackle, but it can be done with time, patience, and diligence. Using paid and organic efforts, you can increase brand awareness while adding to your email list. Here’s how. ■ Branding: Ensure your firm’s brand name is easy to use, whether that’s with an acronym or spelling. Leverage your logo and firm colors in all marketing campaigns, and consider images that coordinate with and compliment your colors. Remember to include your firm’s branded hashtag in all social media posts, especially Instagram. ■ Search Engine Optimization (SEO): Leveraging veterinarian keywords on pages and blog contentdeveloped specifically for them will help veterinarians to find your firm’s name organically. Consider creating questions and how-to’s from keywords phrases, such as “How can I increase my veterinary practice’s cash flow?” or “How to manage a veterinary practice effectively.” Then, place those terms in the headline or on an alt tag for the image. Also, place the phrase in your keywords tag on the website or in the web-template (e.g., WordPress)keyword field. ■ Search Engine Marketing (SEM): Rather than simply posting text ads on Google or Bing, consider a more advanced process like managed placements or display ads on specific websites. You can place banner and graphical ads on popular veterinar focused sites rather than relying solely on text-based searches. ■ Social Media Ad Campaigns: Leveraging social media ad campaigns for lead generation pages, like tip sheets, downloads, video plays, and more, helps grow your email lists by collecting email addresses. ■ Infographics: Data represented visually is a fun and effective way to connect with your audience, while also branding. Using animal imagery plus How the 20% Qualified Business Income Deduction Affects Veterinary Practices By Marsha Heinke, DVM, CPA, EA, CVPM With passage of the Tax Cuts and Jobs Act (TCJA), most practice owners are hopeful of reduced tax burden, enhanced by the prospect of a 20% deduction on “Qualified Business Income” (QBI) flowing through from S Corporations, LLCs, Partnerships and Sole Proprietorships. And everyone is cautious, because there are complications to understanding QBI and eligibility for the deduction (QBID). With the limitations discussed further below, many practice owners may be phased-out of this glorified tax deduction. So what is the possible deduction by an individual with an equity position in a veterinary pass-through entity (PTE)? ■ If MFJ taxable income is less than $315,000 (other filers, $157,500), then you are eligible for the QBID. ■ The deduction can’t exceed 20% of personal taxable income over any net capital gain. ■ The QBID may phase, when a taxpayer’s personal taxable income is between $315,000 and $415,000 (MFJ) or between $157,500 and $207,500 (filers other than MFJ). ■ For other types of QBI, the related pass-through deduction is further limited by certain calculations of the entity’s W-2 wages and qualified property basis. What is QBI (Qualified Business Income)? ■ Pass-Through Entity net amount of income, gain, deduction and loss ■ Entity business conducted in U.S. ■ May (this is currently debated and uncertain) include rental property income. ■ Excludes shareholder’s reasonable compensation (W-2 wages) or partner’s guaranteed payments. Excludes income from Specified Service Fields when personal taxable income exceeds phase out limits (see above). Specified Service Fields could include veterinary practices, where “the principal asset is the reputation of the employee or owner.” But we don’t know yet! Specified Service Fields per new Section 199A includes “Health,” and under other long-existing IRS regs, Health is a service field that does include veterinary medicine. RESOURCES FOR THE VETERINARIAN ACCOUNTANT • Veterinarian's Money Digest: Accounting Tips for the Busy Veterinarian - • How Glenn Hanner Became Top Dog in the Veterinary Accounting Niche - • Katz Sapper & Miller blog: 6 New Tax Provisions Veterinary Hospitals Should Know - • Vet Practice Magazine: Tax Time Tips - Building Your Niche Practice is sponsored by Intuit QuickBooks.

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