FootnotesF I N A N C I A L I D E A S F O R T O D A Y A N D T O M O R R O W

S P R I N G 2 0 1 9 HOGAN - HANSEN, P.C., CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

Auditing and AccountingBusiness ManagementConsultingBusiness Strategies forTaxes and Succession PlanningBusiness ValuationsCafeteria Plan Design and AdministrationEmployee Benefit PlanServicesFinancial Planning Payroll Management QuickBooks Support Tax Preparation

Did you know that all CPA’s are required to get at least40 hours of continuing education each year? Many ofour professionals at Hogan - Hansen actually take

50-60 hours per year to meet the requirements of theirvarious specialties. In addition, many of our staff have experience with a wide variety of clients and have workedin various industries or were even small business ownersthemselves. With the constant changes happening intoday’s world, it can seem impossible to know all the answers or where to find the information you need. There are several areas we are prepared to help you as you navigate through difficult decisions.

Many times we find that our clientsput off important decisions and key planning items because it is too over-whelming. This is your call to action. We are here to help

with our team of dedicated professionals toadvise and consult on key areas, both individ-ually and pertaining to business ownership.

We can help you with the difficult plan-ning questions that will impact your life for

years to come. Can I retire early? Howshould I plan for retirement? Howmuch should I be saving for collegeeducation? Do I have enough life insurance? Do I need long-term care

insurance? Do I have the right insurance? These are allareas that we can assist with using our planning andwealth management services. In most cases we will evaluate your current situation at no cost to you.

Are you considering selling your business? Do you wantsome guidance on setting a price? How much do you need to replace your income? How much tax will be due if you sell? Can you get the business transferred to yourchildren? Our professionals can help you with successionand estate planning.

Should I be funding a retirement plan for myself and my employees? What type of retirement plan should I be

offering? Can someone help my employees plan for theirretirement? What is the most efficient way to take moneyout of my retirement funds? Hogan - Hansen’s retirementplan and wealth management professionals can help youwith these concerns and more.

Are you having trouble staffing your accounting depart-ment? We have professionals that we outsource to clientswho come to your office and function as part of your staff.We can also help if you want to outsource your payroll.Our monthly service professionals can take the payroll burden off of your plate and let you use your time for more valuable things.

In this world of constant change it is our goal to be your trusted advisor. We are renewing our efforts to earnyour trust and be a resource for you in all accounting andfinancial-related areas. Please give us a call if we can help!

Dennis Muyskens, CPA, is the part-ner-in-charge of our Algona, ForestCity and Mason City offices and hasextensive experience working withsmall businesses.

Who Are You Going to Call?

FROM THE PEN OF A PARTNER

W ith endless movies, TV shows and video gamesavailable to us 24/7, it’s become too easy to spendall our free time on electronic devices. If you and

your family are looking for ways to unplug this summer,consider these ideas:

Turn off notifications. Hey! Guess what? Bill just posteda photo of his dinner! And look at this! Minneapolis just set the world record for the largest pillow fight! Let’s be honest, most alerts you get on your phone are meaningless, yet we allow them to steal our attention several times a day. Review your phone settings and turnoff all nonessential notifications to keep you focused onthe things that are important to you.

Ration your screen time. Limiting time in front of ascreen is important for both you and your kids. Settingdaily screen limits is a good way to keep your media consumption under control and allow for guilt-free time when you just want to scroll through social media or watch a movie.

Make a summer reading goal. Set a goal (with prizes at the end!) for yourself and your children to read a certainnumber of books before Labor Day. According to theChicago Tribune, because reading is an active activity (not passive, like watching TV), “it reduces stress, promotes comprehension and imagination, alleviates depression, helps you sleep and may contribute to preventing Alzheimer’s.”

Schedule phone-free activities. Plan a get-togetherlike a picnic or BBQ, but with a catch — phones need to bechecked at the door. That way you and your guests canfocus on each other without the constant distraction of aphone. If some of the guests don’t know each other, even

better! They might leave the partywith a few new friends.

Start a new outdoor hobby.Getting outside is a great way to separate yourself from your elec-tronics. By finding an outdoor hobby that interests you, like hiking, gardening or camping, you’ll have an

activity that takes your attention away from your phoneand provides added benefits, like exercise and vitamin D.

By getting your electronic habits to a manageable level,you’ll free up more time and energy to live this summer tothe fullest.

Get Your Life Back! Ideas to Unplug

The keys to successful digital marketing practices are often

learned through failure. Butthis doesn't have to be

you! The wise businessowner learns from thetravails experiencedby others. Here are

some digital marketingmistakes to know so you

can keep them from unrav-eling your strategy:

1. Overlooking directory listings.Now more than ever,people turn to the

internet for answers to their questions - what

restaurant serves the bestseafood? Which bands are in

town tonight? Where can I get my taxes prepared?Directory listings such asGoogle My Business, Facebook and Yelp group

local businesses by niche andlist them as the top options to

answer these questions.Not having your busi-

ness prominently displayed in these results drops your

listing below your com-petitor's and puts you at

a clear disadvantage whenlooking to add new customers.

2. Ignoring negative customer re-views. A non-response to a disgrun-tled customer in a public space givesthe false impression that you don'tcare about customer satisfaction.Don't let the impression sink in - use it as an opportunity to turn a potentially damaging review into apositive example of your relentlesscustomer service. A sincere responsethat provides a reasonable solution

will show potential customers that you can be trusted to fully take careof their needs.

3. Posting pointless content on socialmedia. Too often, businesses lack a social media marketing strategy and post things just to have a presence. Over-posting or posting irrelevant information can diminishyour brand and make you look out of touch. Whether it's a newsworthyitem to prompt customer questionsor it's designed to drive traffic to your website, every post should stimulate action or positive feelingsfrom the reader.

4. Neglecting your website. Yourwebsite is often the first, and maybelast, impression a potential customerhas of your business. Don't blow it with a stale presentation and out-dated information. Old news storiesand content will give the appearancethat your business is not up to speedon the most recent developments inyour industry. Keeping your websitelooking fresh and stocked with cur-rent topics will show your customersyou are engaged and ready to givethem the best service possible.

5. Deploying an inconsistent approach. Marketing doesn't have a season — it needs to have a consistent presence year-round. Inconsistent marketing fails to communicate the benefits your products and services provide. Every customer touchpoint should be part of a greater strategy thatseeks to build confidence in yourbrand. Scattered pieces of contentmay provide value here and there, but the power of consistency directlyconnects your marketing content tothe value of your business.

Digital Marketing Mistakes toAvoidHere’s a fun tax quiz you

can use to impress yourfriends with some quirkystate tax knowledge.Think taxes are simple and filledwith common sense? Think again!Enjoy this fun quiz to see how well you know the crazy world of state taxes.

1 If you have a hankering foran apple or banana at work,you'll pay an extra tax to buy

fruit from a vending machine inwhich state? A. Georgia, B. SouthDakota, C. California or D. Oregon

2Looking to finally get that"mom" tattoo on your arm?Which of these states

charges a 6% tax on that tattoo?A. Minnesota, B. Arkansas, C. Delaware or D. Texas

3Have you ever looked at atree in your yard andthought, "wow, that tree

sure is exceptional"? If you haveone of these "exceptional" treeson your property you might be entitled to a $3,000 tax deductionin which state? A. Hawaii, B. Missouri, C. Maine or D. Alaska

4Next time you are at a bakeryin this state and the bakerlifts the knife to cut your

bagel, stop them. It could be a taxable event! Can you name thestate? A. Utah, B. Wisconsin, C. Pennsylvania or D. New York

5Looking for a long-term retirement tax-savings tip?Which state exempts you

from state taxes once you turn100? A. Michigan, B. New Mexico,C. Rhode Island or D. Virginia

See the next page for the answers.

Tax Quiz: WildState Tax Laws

120 East State Street Algona, IA 505111601 Golden Aspen Drive, Suite 107Ames, IA 50010303 East Main Street Belmond, IA 504212750 First Avenue, NE, Suite 150Cedar Rapids, IA 52402605 East J Street, Suite 300Forest City, IA 50436200 North Adams AvenueMason City, IA 504013128 Brockway Road Waterloo, IA 50701

www.hoganhansen.com

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Wild State Tax Quiz Answers

This newsletter is issued quarterly to provide you with an informative summary of current business, financial and tax planning news and opportunities. Do not apply this general information to your specific situation without additional details and/or professional assistance.

Nick AarsenPrincipalJennifer Decker PrincipalSteve Duggan PrincipalDamian Hurmence PrincipalLaura Monaghan PrincipalDennis Muyskens PrincipalLisa Wall PrincipalKristi WickPrincipal

AlgonaAmesBelmond Cedar RapidsForest CityMason City Waterloo

PRSRT STDU.S. POSTAGE

PAIDBelmond, IA

PERMIT NO. 54

1The answer is C. California. Cold foodis tax-exempt if purchased at a store,but subject to tax on 33% of the price

if you purchase fruit from a vending machine. If you sell fruit in this state...good luck keeping track of the tax.

2The answer is B. Arkansas. Bodypiercings are also taxed at 6%. So if you are waffling between

getting that tattoo or a nose ring, you can eliminate taxes as a deciding factor!

3The answer is A. Hawaii. Worriedabout how new developments weredestroying the environment in the

70’s, the Hawaii State Legislature addedthe tax deduction for expenditures paidto maintain an exceptional tree.

4The answer is D. New York. Slicing abagel meets the state's definition ofprepared food and is subject to an

8% sales tax. That goes for applying creamcheese as well.

5The answer is B. New Mexico. If you are 100 or older and are notclaimed as a dependent, you are

exempt from filing and paying New Mexico personal income tax.

As you enjoy the nice spring weather,spread some of this fun tax knowledgewith family and friends.