The March edition of The Business Advocate is available and features our Chamber Champions awards recipients, election endorsements, City Council recommendations, Tempe Leadership’s 25^th anniversary and exclusive offers and opportunities for the business community.

Spring officially arrives on March 20, and with it comes some great chances to do grow your business and enjoy the fruits of your labor.

Plant seeds for growth (and enjoy free breakfast): http://bit.ly/cXFmY

Form and nurture vital relationships:  http://bit.ly/abKvln

Have a free MADCAP evening:  http://bit.ly/a92QNO

Become a leader with Austin Vickers: http://bit.ly/9BOPFp

If you have any questions, would like to register, or just want to say hello, please visit www.tempechamber.org or drop us a line at info@tempechamber.org.

Bring your spouse, friend, business partner or staff as a way of saying “Thanks!” to the special people in your life.

Feb. 24, 6-9 p.m
The Waterfront
5350 S. Lakeshore Dr.

Tickets are $40 and are available at http://bit.ly/tccoasis or by calling 480-967-7891. Walk in guests will be welcomed.

Sponsored by SRP, Desert Insurance Advisors and Alphagraphics. Special thanks to Four Peaks Brewing Company, Fry’s Food Stores, Tempe Schools Credit Union, Fred’s Flowers, Crazy Harry Photography, Themers, Ray the DJ and all of our gourmet caterers, including Heidi’s Events & Catering, Special Moments, El Penasco, California Pizza Kitchen, El Dhaba, Edible Arrangements and Rosetta Espresso.

I have a deal for you. Give a dollar, and you’ll get $34 in return. Really.

For every dollar invested in Tempe tourism, $34 is generated in new spending for our community. That’s just one of the reasons why the Tempe hoteliers, the Tempe Chamber of Commerce, the Downtown Tempe Community, residents and the City Council are rallying behind Proposition 400, which would increase the tax on hotel rooms by 2 percent. This increase is expected to generate more than $1.5 million per year which will be used to attract additional tourists and support tourism activities. These activities could include a Tempe CVB advertising campaign in key cold-weather markets or support of major events such as the P.F. Chang’s Rock ‘n’ Roll Arizona Marathon & 1/2 Marathon, the Thanksgiving Soccer Tournament and Ford Ironman Arizona.

The extra revenue that will be generated by Prop. 400 represents more money for Tempe businesses, more tourism related jobs in Tempe and more money for the city, lowering the tax burden on residents. This tax increase will only be paid by those who stay in Tempe hotels. At 5 percent, Tempe’s new rate will remain lower than the national average.

Currently, tourism in Tempe generates more than $100 million annually for our economy. Destinations like Tempe are competing more than ever to attract tourists and business travelers. It is critical that we maintain our momentum and continue to promote Tempe to potential visitors who will spend money at our local hotels, restaurants, shops and attractions.

Prop. 400 is on the March 9 ballot. I encourage you to vote “Yes” on Prop. 400. If you own a business in Tempe, please educate your staff about this important issue.

For more information, including the top reasons to vote for Prop 400, questions and answers about its benefits for Tempe and a list of supporters, please visit www.YesOnProp400.com.

To register to vote, please visit http://recorder.maricopa.gov/web/elections.aspx.

Please join me and vote “Yes” on Prop. 400. Tourists pay. You benefit. Tempe wins.

In any business, the circle of advisors you choose is of utmost importance.  They are a library of knowledge for you to use as a resource and a clearinghouse for your ideas.  Choosing the right partner can contribute to making, or breaking, your financial future. After all, you are legally responsible for every item on your own tax return, even if you pay someone else to do it. 

Who is Qualified?

In the State of Arizona, there are no licensing requirements to prepare tax returns.  This means that anybody can simply “hang a shingle” and call themselves a tax preparer.  Lawyers, Certified Public Accountants and Enrolled Agents are professionals who are licensed either by the State or the US Treasury Department.  These practitioners have continuing education requirements, must abide by a strict code of ethics, and have oversight in place in the case of violations.  A license does not guarantee a perfect tax return, but it does give you recourse in the case of a bad preparer.  Are there good unlicensed practitioners out there?  Absolutely!  That’s why you can’t rely on the credentials alone.  Ask your friends and colleagues for referrals, and most importantly ….

Ask Good Questions

Do you have clients like me? If you have advanced issues, or have a complicated business model, it is important to give your potential practitioner the full picture by giving them access to your previously filed returns. 

Who will be preparing my returns?  Many larger firms will pass your information to lower level, less costly, and less experienced preparers.  This isn’t always a bad thing, but you deserve to know who is working your return. 

What happens if I receive an IRS notice?  Believe it or not, the IRS often issues notices that are wrong.  This may not be your fault, and may not be the fault of your practitioner either.  Will your practitioner answer these letters for free, or will they charge?  What will they do if you are audited?

Red Flags - Signs to stay away!

If your practitioner demonstrates these qualities, it is best to run away:

• Guarantees a refund.  Your refund is as much the cause of your preparer as the weather is a cause of the weatherman. 
• Files your tax return without reviewing actual W-2s and documentation that comes in envelopes marked “Important Tax Documents enclosed.”
• Bases their fee on the size of your refund.  This is strictly prohibited by the AICPA and US Treasury Department.
• Does not provide you the opportunity to review your tax return before e-filing it. 
• Does not sign the tax return as a paid preparer. 

Using these tips, you are setting yourself up for success in the upcoming tax season!  Many happy returns!

Aaron Blau, E.A. is the Vice President of Alan Blau & Associates, Ltd, a Tempe accounting firm specializing in small business and individual income tax and accounting services.  He is the Vice President of the Central Arizona Chapter of Enrolled Agents and a member of the Government Relations Committee for the National Association of Enrolled Agents. He regularly presents QuickBooks training for SCORE and speaks on professional ethics.

Catherine Mayorga

February - the month of hearts and flowers; of poems and promises; of love to hate and hate to love! It’s also the month of our statehood.

I write with the memory of falling in love.

Let me recall this: It was new and full of promise! There was so much territory to cover. We could write our own script. There were adjustments to be made: compatibility issues, trust issues, how much were we each willing to invest in this new relationship? Were there superficial issues to address? Looks? Size?  Intellect? Values? Baggage?

Over time we became too comfortable with the relationship. We took each other for granted. Wasn’t it always going to be there for us? Finally, chaos erupted. What I thought was a solid relationship is no longer.

Too many others came into the relationship. We took advantage of all that was offered to us. We did only what was good for ourselves. We didn’t take care of what we had. We used up all of its goodness.

So it is with our great state - Arizona.

When it became a state on Feb. 14, 1912, it was ours to take and make. So much territory to use, so many resources - cattle, copper, citrus, cotton and climate. 

We took advantage of the state, and now, what is left of this relationship? Is there any more space in this relationship? Can we recover from the mess we’ve made? We used up what was “brought to the table” - the five C’s!   

With the climate, we had oh so many people, and now we have too many empty houses.

We had to make room for the housing development, so we moved the cattle ranches.

The boon of the copper is over, and we have small “mining towns” drying up.

Citrus: Much like cattle, our growing population has moved into the land where we once had beautiful and plentiful citrus orchards!

In the name of economic development, we made more roads for travelers at the expense of losing the cotton fields, and we helped to diminish jobs!

We have a large deficit (among other problems) because we are focused on little pain for ourselves, not little pain for those who come after us. It’s not like we are all willing to overfund schools.

When we think back to the great days of our new romance with our great state, it was hopeful, it was young, it was fresh, and it was pure. It was rich, but, like a strong relationship, it requires maintenance to return to all that it is capable of giving. Now is the time to build the relationship, not just by bringing flowers but by taking it to the next level so that we might solve our state’s problems and let our state’s strengths shine through.

Relationships work because people reflect on their value, decide they’re worth saving, make sacrifices, re-prioritize and find solutions to the difficult problems because the problems aren’t as great as the promise. This Valentine’s Day, let’s commit to the future of our state in the same way we commit to the future of our loved ones; they’re both work and they’re both worth it.

Catherine Mayorga is Vice President of Public Affairs at the Tempe Chamber of Commerce.

The Tempe Chamber of Commerce is hosting a Business Solutions Clinic to provide complimentary business counseling sessions with industry experts. The half-day clinic takes place from 1 p.m. to 5 p.m. on Feb. 25 at the Tempe Chamber offices.

In our ongoing efforts to ensure that you have the tools and training necessary to succeed and grow, we have secured the services of a panel of experts who will provide individual mentoring sessions for pre-registered participants.

Topics of instruction are: Accounting, Marketing/PR, Sales, Legal, Workers Compensation & Insurance, and Finance & Banking.

In addition, a SCORE representative will be present to answer general questions for all attendees.
Refreshments will be provided by Marketside at Rural and Elliot.

Participation Requirements

Participants must be members of the Tempe Chamber. Courses are available in 30-minute sessions. All 30-minute sessions must be reserved in advance to Sachiyo Ragsdale at sachiyo@tempechamber.org or to (480) 736-4285. Participants may book a maximum of two sessions. We regret that walk-in guests cannot be accommodated.

Courses and Mentors

Accounting/CPA - Laura Opstad: http://www.linkedin.com/pub/laura-opstad/10/301/842

Marketing/PR - Diane Wallace: http://www.linkedin.com/in/dianewallace

Sales - Anita Grantham: http://www.linkedin.com/in/anitakgrantham

Legal - Joan Jakel-Smith: http://www.linkedin.com/in/joanjakel

Workers Comp. & Insurance - Neil Chitel: http://www.linkedin.com/in/nchitel

Finance & Banking - Peter Eberle: http://www.linkedin.com/pub/peter-eberle/0/5ba/591

A few tips regarding 2009 business taxes.

If you want to do a contribution to a pension plan, you still have time.  Most contributions are deductible.

 IRS requires substantiation for travel, meals and entertainment.  In order to deduct the expense you must have the following information written down:

1. Amount of expense
2. Time and place of the expense
3. The business purpose - relationship of persons entertained, etc.

In a 2009 tax court case a taxpayer was disallowed a section 179 depreciation expense deduction because he did not have a mileage log to substantiate the use of a business vehicle.

Another taxpayer lost vehicle deductions on 13 vehicles because he did not have mileage logs.  IRS is really cracking down on documentation to support the business use of business vehicles.  By the time a case is settled, the cost to the taxpayer could put most small businesses out of business.

We have always told our clients to use mileage logs and provide them to the clients.  We have the 2010 logs in the office.  Please let us know if you need one.

If you provide retirement benefits or life insurance to employees, it is a good time to remind employees to review their beneficiaries.  People divorce, remarry, have additional children, and many other life events without changing their beneficiaries.  This can create major problems.

Although some dealerships are still trying to tell people they can completely write off a Hummer, you can never write off more than business use.  Many SUV’s are limited to $25,000 in the first year.

Laura Opstad is a member of the Tempe Chamber of Commerce and shares these tax tips with our readers as a certified CPA.

Sale!  Coupons!  Rebates!

As consumers we’re always on the lookout for these.  We check the newspapers and sign up for e-mail notices.  If something particularly good comes by, we might even share it with friends.  From Black Friday to Cash for Clunkers to a free Grand Slam Breakfast, we’re interested in and react to getting a good deal on things we want and things we need.

But shhhh!  Don’t tell anyone.

These are “incentives!”

Yes, those same dreaded tools the Tempe Chamber supports to lure jobs and businesses to the state.

Why do businesses send us these coupons?  We’d buy their products anyway, right?

What?  You’d buy from the competitor if it was cheaper?  You check out the grocery ads to see if you’d save more money at Fry’s or Safeway or Bashas?

Thank God businesses don’t act that way.  They don’t pay attention to how much it will cost to operate in a particular location.  They don’t comparison shop for where they’ll invest their money and bring their jobs.  They don’t need incentives and they don’t respond to incentives.

Just like you don’t.

With the new year now in full swing, what are you doing to boost your business? If you’re like many, finding extra time to network might seem nearly impossible. That’s why the Tempe Chamber of Commerce hosts Networking @ Noon, providing a way to use your lunch break as a time to meet potential clients and business contacts.

This month’s Networking at Noon luncheon will take place at Heidi’s Events & Catering on Feb. 11 from 11:30 a.m. to 1 p.m. To enable the most effective  networking opportunities for attendees, we’ll begin the event at 11:50 sharp. Afterwards, an open-seating lunch will be served from 12:40 to 1 p.m., which will give you a chance to relax while you enjoy a great lunch and even better company.

A second way to incorporate networking and business growth into your day is by attending our Hot Topics and Lunch event. On Thursday, Feb. 18, from 11:30 a.m. to 1 p.m., we welcome Dr. Jay Butler, associate professor of real estate at ASU, as he examines the real estate market of the past year and provides an outlook for 2010. This informative event will be held at Monti’s La Casa Vieja, 100 S. Mill Ave. in Tempe.

The cost to attend either event is $25 for Tempe Chamber members in advance, $30 for members on the day of and $35 for the general public. RSVP to the Tempe Chamber at (480) 967-7891 or online at www.tempechamber.org.

There are many different legends of how Valentine’s Day originated and the true creation is still a mystery. ..

My favorite legend is not that of St. Valentine, but of the story of mating birds.  It is said that in the Middle Ages, birds began to look for a mate on February 14^th, which over time marked this day as a day for love and romance.  Lovers began celebrating this day with the exchanging of gifts such as love notes and flowers.

Valentine’s Day today is still celebrated by showering that special someone with gifts of chocolate, greeting cards or flowers to let them know just how much we care for them.  It’s a day to stop your busy schedule and take time to spend with the person that you love and adore. 

February 14^th also has a significant impact on our economy.  For the businesses in the gift-giving industry, Valentine’s Day is one of the largest revenue generating holidays of the year.  These businesses are preparing months in advance for a flawless execution of high volumes in a short period of time.  By hiring additional staff, purchasing additional goods, paying for more advertising, generating more TPT for our cities and state, this industry will circulate Valentine’s Day revenue back into our local markets and communities.

This Valentine’s Day consumers will be cost conscious while looking the utmost value.  At Edible Arrangements we offer gifts to meet all budgets and needs of our customers. Flowers that you can eat?  That’s value!

Written by Sandra Lembke of Edible Arrangements. For more information or special offers on Valentine’s Day gifts contact them at (480) 921-3660.