Finance & Accounting Support

[racinray]

[FONT=Verdana]I'm curious as to how some of the smaller but professional race teams handle their finance and accounting. I have a BSBA in Finance and have been working in the Finance/Accounting (and even contracts) field for almost 25 years and have been a racer for 15 years. I have mainly worked for government contractors but most of what I know transfers to other types of businesses and I certainly know a lot about the costs of racing and budgeting for racing. Thankfully I have a full time job and as far as I know I'm not in jeopardy of losing it but it has always been a desire of mine to support the motorsports industry. If the smaller professional teams have a need then I could start a business on the side and see if it grows. The advantages that I see are these but I’m sure there are more:[/FONT]
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[FONT=Verdana]1) Based on my personal experience, I have a pretty good understanding of what is involved in running a racing team and the costs that need to be gathered and itemized.[/FONT]
[FONT=Verdana]2) Standard ways of gathering costs and presenting financial information could be developed so that it means more to the owners/general managers. Obviously better information means better business decisions.[/FONT]
[FONT=Verdana]3) Metrics such as the cost per race car or cost per race weekend or even cost per driver could be developed. I’m sure there are other important metrics as well.[/FONT]
[FONT=Verdana]4) I can also ensure that shop and race equipment is properly amortized and track the life of items that only have a limited useful life so that a replacement date can be identified. [/FONT]
[FONT=Verdana]5) Although proprietary information between race teams would not be shared, the more teams that I work with the more I would be able to help everyone’s business run smoothly, efficiently, and profitably.[/FONT]
[FONT=Verdana]6) I’m not a tax accountant but I would be able to work with the accounting firms that handle your taxes and most likely reduce the time that it takes for them to prepare and file your tax returns thus saving you money on that side.[/FONT]
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[FONT=Verdana]At this point, I have no idea on the cost of my services but I’m thinking that a small monthly retainer is best for everyone. Again, I’m just gathering info right now to see if this is something that is needed so please let me know your thoughts. You can post here or you can email me privately at fvee5 at Hotmail dot com.[/FONT]
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[FONT=Verdana]Thanks,[/FONT]
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[FONT=Verdana]Ray Phillips[/FONT]

[stroutmail]

I think you are on the right track with your thinking.

Since I manage money (investments) for a living, clients and friends often end of asking for advice about accounting and taxes. It has been my experience that there is a real "small business" need for assistance in organizing book-keeping and tax/payroll reporting.

Since you have an intimate knowledge of racing, you would be well qualified to set up a "template" in Quick Books and help a small racing team set up the General Ledger as well as helping with Journal Entries, and completing their Income Statement and Balance Sheet. In addition, most people need help in completing the necessary State, Local and Federal payroll reports.

I know of several accounting consultants that make a living providing those services for many small businesses, non-profits and churches. Most charge a annual "retainer" and then an hourly fee based on time spent--considerably cheaper than a CPA.

Most business owners consider the whole "accounting" process to be a "hassle" and ar happy to have someone help them---their CPA's are also quite happy as the tax preparation is easier with organized set of books.

The other benefit is that with a real set of books--the "profit seeking intent" is more easily defended.

[racinray]

Thanks Wayne. You hit on some of the things I was thinking of.

Ray

I think you are on the right track with your thinking.

Since I manage money (investments) for a living, clients and friends often end of asking for advice about accounting and taxes. It has been my experience that there is a real "small business" need for assistance in organizing book-keeping and tax/payroll reporting.

Since you have an intimate knowledge of racing, you would be well qualified to set up a "template" in Quick Books and help a small racing team set up the General Ledger as well as helping with Journal Entries, and completing their Income Statement and Balance Sheet. In addition, most people need help in completing the necessary State, Local and Federal payroll reports.

I know of several accounting consultants that make a living providing those services for many small businesses, non-profits and churches. Most charge a annual "retainer" and then an hourly fee based on time spent--considerably cheaper than a CPA.

Most business owners consider the whole "accounting" process to be a "hassle" and ar happy to have someone help them---their CPA's are also quite happy as the tax preparation is easier with organized set of books.

The other benefit is that with a real set of books--the "profit seeking intent" is more easily defended.