The traditional definition of a retail business has blurred significantly with many retailers having a brick and mortar store as well as an online presence. More than ever, many manufacturers produce both private label and branded products, which they market through retail channels. DZH Phillips is committed to promoting the success of our retail clients through a comprehensive focus on the changing demographics of today’s consumer and marketplace, human resources issues inherent in the industry, and the complexities of sales tax in an online and multi-store environment.
Retail stores have specific accounting and tax challenges, which can be rendered significantly more complex in a multi-store/multi-state situation. The professionals at DZH Phillips understand the retail operating environment, including the seasonal nature of the business and its impact on cash flow and inventory. We provide a full range of services targeted at helping traditional retailers control costs and increase profit. Among the strategies we employ are sales tax planning and analysis, including pre-payment methods and compliance over multiple jurisdictions; point-of-sale accounting and inventory management systems; establishing cash controls, the processes and procedures intended to monitor and protect against fraud; and cost segregation through a comprehensive analysis of store leasehold improvements to maximize depreciation deductions.
CPAs who don’t commonly work with automobile dealerships are often surprised by the unique and complex accounting reports required by this industry. Dealerships are subject to specific compliance regulations and documentation requirements, and they benefit most when they partner with a CPA firm that significant experience with various tax credits and deductions available to the auto industry. Fortunately, DZH Phillips has a long-standing association with the AutoCPA Group, and our industry experience encompasses dealer income tax and estate planning; Last-In-Last-Out (LIFO) inventory regulations; operations review and evaluation; compensation consulting and planning; business succession and exit planning; and buy-sell agreements.
The exponential growth of online retail is one of the biggest stories of recent years. Even despite tough economic conditions, new online retailers continue to make a splash on the Internet. Clearly, online shopping is here to stay. Although the regulations governing tax for such businesses are still in their infancy, the industry has developed to the point where sales and income tax guidance are often needed by online retailers. DZH Phillips assists our clients in the online retail sector with tax planning and compliance issues, including collecting appropriate sales tax for goods shipped within California; understanding sales tax rules and state income tax filing requirements for goods shipped outside California; planning to apportion income to lower tax states; inventory management; and accounting and tax treatment of website design and maintenance.