Different businesses have different needs. It is our firm's philosophy to determine how each company can benefit from our services. These services fall into some very basic areas as follows:

1. Advisory and Consulting
2. Taxes
3. Accounting

But what better way to describe how Kostick & Company improves the bottom line than with real-life examples:

Tax Advice

An attorney who was a sole proprietor became a client. We suggested that he incorporate and become a Subchapter S company. In that manner he was able to reduce the amount of income subject to self-employment taxes. In 1993, the attorney paid $9,641.00 in payroll taxes on $92,293.00 of income. In 1994, he incorporated.

Between 1994 and 1999 he earned $855,000 and paid $52,248.00 in payroll taxes. Had he not incorporated he would have paid $76,327.00 in payroll taxes. Tax savings since incorporation -- $24,079.00. Ten year projected tax savings - $40,000.00.

Advisory and Consulting

A client had 5 different operating companies. Each did the same thing. One person was the principal owner (more than 75%) of each company, with the different companies having different minority owners. All companies worked together and billed each other for various efforts, creating significant bookkeeping effort.

We had the companies consolidate into one entity. In this way we were able to reduce personnel by 2 people, saving more than $75,000 per year in personnel costs. In addtion, the company was now able to obtain their financial information almost two months earlier than they had before, thus enabling them to make better decisions.

Accounting

A construction company was trying to determine their gross profit and their monthly overhead. Ownership did not have a handle on the numbers and thus could not properly bid out prospective jobs. By revising the form and format of their financials, we were able to generate the information needed to have the company prepare the bids effectively.

A law firm was not making as much money as they thought they should. Their financial statements were restructured to show the revenue stream generated for each attorney and the expenses that were directly attributed to the generation of revenue. After the task was completed and the revenue stream was analyzed, the 2 most senior partners realized that the other members of the firm were not pulling their weight. With that information they were able to restructure their partnership agreement to make it fairer for all.