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Why CSB?

December 5, 2018

Kenny Crow, CPA | Managing Shareholder | Published by Crow Shields Bailey

Why CSB?

At Crow Shields Bailey PC (CSB), the culture is focused on putting our team first. As a result of that, we experience tremendous success in recruiting the best and the brightest—professionals that bring fun and passion into our work environment every day.

We work hard for the opportunity to play hard. Our creativity is fostered through open dialogue and being receptive to new ideas and better ways to combine our diverse talents to achieve a desired result.

CSB takes great pride in our community involvement. Individually, we encourage our team to explore passions, utilize their talents, and openly give time and resources to worthy causes that positively impact our region. Each year, CSB selects an annual charity focus, and our team donates 20 or more hours a month to other philanthropic efforts.

When you join CSB, we invest in your future. We help you identify a meaningful career path and train you to optimize your potential. We discovered a long time ago that the success of our team members in climbing the ladder to the top only fuels our practice growth. Everyone wants to help each other expand their skill set, and work together to support our firm’s mission.

Our RSM alliance partnership provides consistent training and leadership development opportunities. So, if you were a bit shy about making presentations to professionals, speaking to a group of bankers, or having a high-level conversation with an important client or prospect, your confidence will soar after attending peer training programs across the country. CSB has evolved into a well-respected firm known for its consultative approach to helping clients achieve their financial goals.

So my question is, why not join a firm like CSB, where peers respect you, where you are challenged to become the best version of yourself, and where you have a high probability to succeed personally and professionally?

 

Crow Shields Bailey Spotlights Client David Rasp And His Restaurants

September 27, 2018

Emilee Shuler | Marketing & HR Assistant | Published by Crow Shields Bailey

Humble Beginnings

“Born here, been here, still here.” David Rasp takes pride in being a homegrown, local business owner. On November 6, 1998, he opened his original Heroes Sports Bar & Grille location at 273 Dauphin St. in Downtown Mobile. Previously, this address had been home to his own favorite sports bar, Big Kahuna’s Sports Café. Having no experience in the restaurant industry, Rasp simply wanted to recreate Big Kahuna’s after they closed with a small menu of bar food.

As time went on and Rasp began to find his footing, the menu grew as customers expressed their ideas, which eventually became essential Heroes favorites. For instance, employees of Bender Shipyard were responsible for bringing about the shrimp poboy! Rasp began to realize that in order to be successful he had to view everything from the perspective of the guests, even the smallest details. He also realized the importance of great food at a great price.

Moving On Up

Eight years after opening the original Heroes location, Rasp opened The Royal Scam in order to serve hotel guests along Royal Street. The Scam is a casual fine dining restaurant that aims to please many different tastes. They serve a variety of delicious entrees, ranging from Filet Mignon to Shrimp and Grits. This year, they won the Nappie Award for Best Gumbo!

Heroes West Mobile opened in June 2011. Between 2016 and 2017, the West Mobile location went from the third best seller of all three stores to the first following extensive renovations. The renovations addressed parking, drainage, and general aesthetics. Heroes West Mobile is geared towards families, college students, and those who know and love the downtown location, but live too far away to frequent it.

The Heroes menu is now very broad with a wide variety of delicious choices. It has come a long way from just a small menu with bar food!

Overcoming Obstacles

As with any restaurant, the biggest obstacle David Rasp has faced is the ongoing challenge of staffing. Turnover rates for restaurants are notoriously high. Rasp has found that the best solution to combat this issue is to create an environment where employees like to work.  A few of the things that keep his employees happy include rewards, benefits, and PTO plans for hourly personnel.

Another challenge faced by Rasp and other local restaurants is the influx of corporate chains. For so many years, he was fighting these battles alone. Now, he has a fantastic upper management team that includes Jessica McGee and Richard True. While Rasp has great teams at each individual store, he relies heavily on Jessica and Richard’s help to ensure that all three stores run smoothly.

Culture

Regardless of the differences in atmosphere or client base, each store has an employee-friendly culture and a team that puts the guests first. In order to accomplish this, management hires the best people in the business and works hard to retain them. Rasp feels that he has excellent team players who wear multiple hats, which creates a dynamic work environment.

Being involved in and giving back to the community that has helped make him successful is also very important to Rasp. He supports many local charities and organizations, such as Ronald McDonald House, Camp Rap-A-Hope, American Cancer Society, and Mobile Arts Council.

Being on the Gulf Coast, Rasp emphasizes the fact that we are blessed with an abundance of fresh seafood. He also feels blessed to be embraced by the community. Over the years, the guests have not only framed the current menus of his restaurants, but also the atmospheres and cultures individual to each store. The original Heroes location has many Mobile sports-related photos and memorabilia lining the walls. Rasp says that he and his stores are “so Mobile, it’s crazy!”

Relationship with CSB

David Rasp and Jessica McGee began their relationship with CSB through our Businesses Getting Results (BGR) program. While he already knew our Managing Shareholder, Kenny Crow, Rasp says that his involvement in BGR was one of the main reasons he decided to hire CSB. His favorite takeaway from those lessons was to work “on your business versus in your business.” He says that BGR pushed him to be better at delegation and many other necessary elements of running a business.

According to Rasp, “CSB is not just a great CPA firm; they offer so much more.” He says Shareholders Kenny Crow and Ryan Damrich are “great advisors” and La Nette Caskey’s QuickBooks training has been vital to the operation of his businesses. He is grateful to have a great relationship with many of the CSB team members. Rasp also says that he admires Kenny Crow’s “coach-like mentality” and he likes to think that he, too, possesses that mentality when it comes to running his businesses.

It is safe to say that David Rasp has created something special for the community. This is apparent for many reasons, including the fact that the people of Mobile have voted Heroes Sports Bar & Grille Best Sports Bar multiple times, and The Royal Scam has won multiple Nappie Awards for various categories. It is also apparent when you realize the close relationships Rasp and his team members hold with the regular guests. Some frequent the restaurants every day, some every weekend during football season. No matter which restaurant you visit, you will likely leave in a better mood than when you arrived. For more information, visit www.heroessportsbar.com or www.royalscammobile.com.

CSB’s Guide to Understanding Classification and Accounting for Leases Under ASU 2016-02

July 26, 2018

Kirsten Sokom, CPA | Supervisor | Published by Crow Shields Bailey

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 on Topic 842 for leases, introducing a principles-based approach in classification and accounting for lease agreements.

 

The changes under the new standard will require most leases to recognize a lease liability and a related right-of-use asset on the balance sheet, regardless of whether or not it is considered an operating or capital lease. ASU 2016-02 becomes effective for public companies’ fiscal years beginning after December 15, 2018. For all other organizations, the standard is effective for fiscal years beginning the following year, December 15, 2019; however, early adoption is permitted. This article summarizes classification and measurement of leases under the new standard.

 

Lease Classification

ASC 842 revised the lease classification criteria as outlined in ASC 840, and those new standards are as follows:

  • Does the lease transfer ownership to the lessee by the end of the lease term?
  • Does the lease contain a purchase option that the lessee is reasonably certain to exercise?
  • Is the lease term a major part of the remaining economic life of the asset?
  • Is the sum of the present value of the lease payments and any residual value guaranteed by the lessee equal to or greater than substantially all of the fair market value of the assets?
  • Is the underlying asset of a specific nature such that it would have no alternative use to the lessor?

If any of the above lease criteria are met, the lease is classified as a finance lease (formerly known as a capital lease). If none are met, the lease is classified as an operating lease. The classification of lease agreements under ASC 842 is similar to current guidance under ASC 840. One change to note is that the 75 percent and 90 percent bright-line tests are no longer included in lease classification criteria; however, ASC 842 indicates that these bright-line tests are acceptable criteria in determining the definition of “major part” or “substantially all.”

 

Operating Leases and the Short-Term Lease Election

Under current guidance (ASC 840), operating leases are not recorded on the balance sheet. This will change under ASC 842. Operating leases will generally be required to be recorded on the balance sheet unless certain exceptions are met, which will result in the addition of a right-of-use asset and the related liability for each operating lease asset.

One of these exceptions is the short-term lease election. Operating leases qualifying for this treatment are not required to be capitalized. Accounting under the short-term lease election would result in similar treatment for an operating lease under the current standard. However, to choose the short-term lease election, the initial lease term and all renewal options reasonably certain to be exercised must not exceed 12 months.

 

Initial Measurement

Initial measurement for operating and finance leases under ASC 842 are the same. The lease liability is calculated based on the present value of unpaid lease payments. This amount will also serve as the right-of-use asset’s cost basis, assuming there are no initial direct costs, prepaid lease payment, or lease incentives received to be taken into account.

 

Subsequent Measurement

While initial measurement is treated the same under ASC 842, subsequent measurement varies for operating and finance leases. For finance leases, the lease liability is reduced using the effective interest method. The interest portion is shown as interest expense on the income statement. The right-of-use asset will be reduced on the straight-line basis over the shorter of the expected lease term or the useful life of the asset. Amortization expense will also be presented on the income statement. If there are variable lease payments also associated with the finance lease, the payments will be classified as rent expenses.

With regard to operating leases, the lease liability is subsequently measured based on the present value of the unpaid lease payments using the effective rate of interest upon lease commencement. The right-to-use asset will be measured at the carrying amount of the operating lease liability while also considering any reduced initial direct costs, prepaid or accrued lease payments, and lease incentives received. On the income statement, both the amortization expense of the right-to-use asset and the recognized interest expense will be shown together as rent expense.

ASC 842 also requires reassessment and remeasurement of the lease if there have been significant changes to the lease term or other aspects of the lease. If you have questions about whether your lease needs to be reassessed, our CSB team is prepared to assist your specific situation.

Consensus surrounding the new standard suggests that finance leases will be more desirable due to the required calculations and disclosure requirements for operating leases. While the ASU 2016-02 language indicates that each lease agreement must be evaluated individually, the FASB has released transition guidance including several practical expedients that may be utilized upon implementing ASC 842.

 

If you have questions regarding how your current lease agreements will be categorized or measured under ASU 2016-02, give us a call. We are happy to provide guidance regarding changes in reporting requirements and your company’s financial performance under the new standard.

Crow Shields Bailey Shareholder Gina McKellar Awarded Best CPA in Local Nappie Awards

July 18, 2018—Crow Shields Bailey PC (CSB) is proud to announce that Gina McKellar, CPA, CVA, has been awarded The Lagniappe 2018 Nappie Award for Best CPA. This well-deserved accomplishment recognizes top local businesses, professionals, and places voted by Gulf Coast readers. With more than 30 years of experience in public accounting, Gina McKellar is CSB’s tax and human resources shareholder, who specializes in accounting and auditing, tax, business valuations, tax planning, business consulting, and litigation support. We invite you to learn more about Gina’s career path, industry passion, and perspective on how the Gulf Coast’s revitalization continues to impact CSB clients’ personal and business financial goals.

Lifelong Passion for Accounting

Gina was born and raised in Mobile, and has been passionate about math since her earlier school days at McGill-Toolen Catholic High School. This love of numbers is what originally attracted her to the accounting profession, but technology keeps her interested in the shifting ability to impact businesses. “The field of accounting is rapidly changing with the rise of technology, and CSB has made it a priority to integrate new practices as the industry shifts towards digital trends. As this change happens, our accountants look forward to taking on a larger role in consulting for our clients, versus simply preparing tax returns.”

Problem Solving

Although her love for math originally led Gina to an accounting career, her desire to be a problem-solver for her clients’ unique demands is what keeps her motivated on a daily basis.

Gulf Coast Progress

Gina believes that as the Gulf Coast continues to flourish, so will CSB’s clients, employees, and community impact. “This is an exciting time to be part of the development across the Gulf Coast, and help our clients continue to grow as a result of local revitalization and innovation.” Gina is married to Charles McKellar and mother to Brian, Bradley, and Thomas Russell. In her free time, she is an avid runner and gardener, and currently serves as McGill-Toolen Catholic Foundation president.

Our CSB team is proud to work with passionate team members like Gina and congratulates this caring and talented professional on her well-deserved Nappie Award.

Crow Shields Bailey Tax Reform Guide to Protect Your Financial Future

Andrew Bailey, CPA, ABV | Supervisor | Published by Crow Shields Bailey

As many are well aware, United States tax law changed when the Tax Cuts and Jobs Act (TCJA) was signed into law this past December. The change was advertised to save taxpayers money and reduce the burden of filing taxes. However, if you do not do any planning before next April, you might end up with an unexpected tax bill and resulting headache. Now that we are nearly halfway through 2018, here are some helpful action items to consider before the end of the year.

Review Your Paystub

If you earn a paycheck, you may have noticed a little pay bump back in February. As a result of the TCJA, most individual tax brackets decreased. Guidelines were issued to help implement employers with tax withholdings under this new law; however, employers are relying on withholding forms (W-4s) that were created under the old tax law. These forms ask employees to select a number of allowances to determine the amount of tax to withhold. The allowances were intended to reflect exemptions claimed on the taxpayer’s individual tax return.

The new tax law repealed personal exemptions completely. They did expand the child and dependent tax credit and standard deduction, but many Americans could still have a tax withhold shortfall due to the old W-4 forms. Our recommendation is to review your most recent paystub and see if you are having enough tax withheld. If not, contact your HR representative and update your withholdings now instead of having a surprise tax bill down the road.

Understand Itemized Deductions

Under the TCJA, the standard deduction has increased from $6,350 to $12,000 for single taxpayers and $12,700 to $24,000 for married filing joint taxpayers. That change alone will limit the number of taxpayers who itemize their deductions.

The most widely discussed change to itemized deductions is the new cap on the state and local tax deduction (SALT). Under the TCJA, the SALT deduction cannot exceed a total of $10,000. If you’re a taxpayer in a high-income tax state or an area with high property taxes (or both), your SALT deduction may not look like it has in years past.

Another big change for our clients is the change to home equity line of credit (HELOC) interest. Under the TCJA, HELOC interest is no longer deductible. In addition, only the interest on $750,000 of mortgage debt is deductible for new mortgages taken out after December 14, 2017.

Some other changes worth pointing out are the repeal of miscellaneous itemized deductions and the charitable contribution change for seating rights. Under the TCJA, you will no longer be allowed a deduction for “miscellaneous itemized deductions.” These items were your unreimbursed employee expenses, tax preparation fees, investment advisor fees, etc. The TCJA also is not going to allow a charitable deduction for “seating rights.” This means you are no longer allowed a charitable contribution deduction for the donation you make to your favorite university in exchange for the rights to purchase season football tickets.

Leverage Small Business Advantage

So far, you might not see how the TCJA is beneficial outside of the lower individual tax brackets. However, if you are a business owner, now is a great time to review your tax and business plan. As the media has been reporting, large corporations are giving bonuses as a result of the TCJA. This is due in part to the corporate tax rate being lowered to 21%. However, a larger number of family-owned businesses are pass-through entities. This means the profits pass through to the owners and the tax is paid at the individual level.

Pass-through business owners need to familiarize themselves with the new pass-through deduction. Pass-through businesses will now get a 20% deduction on the pass-through income since the corporate tax rate is now 21%. However, not every business will qualify, and some planning will need to be done to see if there is anything you can do to ensure you receive the full 20% deduction. This is probably the most complicated part of the TCJA, so we will save those details for another post, but go ahead and read a few credible articles on this topic to understand the basics.

Another huge change for business owners is the expanded bonus depreciation and Section 179 expensing law. Many purchases of tangible personal property such as equipment, computers, and even some capital improvements are now 100% deductible in the year they are put in service. In addition, the TCJA is allowing businesses with average annual gross receipts of $25 million or less to use simplified accounting methods. Overall, the TCJA is encouraging business and capital investment in the United States.

Next Steps

These are just three areas of change under the TCJA. Much more has changed under the law, and we are working to guide our CSB clients through this transition. If any of these topics affect your personal situation or if you have question about the TCJA, give us a call. We would love to help you determine how the TCJA impacts you and your financial future.

Crow Shields Bailey to Participate in Dragon Boat Festival on June 9th

Crow Shields Bailey will have a 21-person team competing in the Fuse Project‘s annual event, the Dragon Boat Festival. Proceeds from the Dragon Boat race go to the Fuse Project, whose funding benefits projects involving children along Alabama’s Gulf Coast. If you would like to take part in this exciting event, it will be held at the USS Alabama Battleship Memorial Park starting at 7:15 a.m., with family friendly events all throughout the day. If you would like to donate to our team page, you can do so on our team website!

 

Crow Shields Bailey and Johnstone Adams to host Tax Reform Breakfast Briefing on May 23rd

Are you interested in learning more about the new tax law? Along with Johnstone Adams, Crow Shields Bailey will be hosting a Tax Reform Lunch & Learn on Wednesday, May 23rd from 11:30 – 1:00 p.m. in the Conference Room at Bryant Bank in Daphne, AL to discuss “Everything You and Your Business Need to Know About the Tax Cuts and Jobs Act of 2017.” For planning purposes, please RSVP as soon as possible to Emilee Shuler at [email protected] or 251-343-1012.

 

 

Crow Shields Bailey to host 3rd Annual IMAGINE Leadership Conference

Crow Shields Bailey is hosting a two-day leadership conference May 10-11, 2018 to equip students with the tools to identify their core values, generate a vision for the future, and gain confidence to use their voice in various real-life situations. Our goal is to help students IMAGINE the difference they can make in their families, schools, communities, and ultimately their careers by establishing a clear vision for their future.

 

 

 

Crow Shields Bailey and Johnstone Adams to host Tax Reform Breakfast Briefing on March 6th

Are you interested in learning more about the new tax law? Along with Johnstone Adams, Crow Shields Bailey will be hosting a Tax Reform Breakfast Briefing on Tuesday, March 6 from 7:30 – 9:00 a.m. at the Battlehouse Hotel Moonlight Ballroom to discuss “Everything You and Your Business Need to Know About the Tax Cuts and Jobs Act of 2017.” For planning purposes, please RSVP as soon as possible to Helen Sewell at 251-441-9207 or [email protected].