OCBJ article: The Critical Role of a CPA Firm in Bank Financing

OCBJ banking finance 2018

Debbie Dickson recently wrote an article in the Orange County Business Journal in the “Banking & Finance” special supplement. Here is an excerpt from the article:

A proactive, knowledgeable and well connected CPA firm can make a major impact on the ability of a company to obtain bank financing. Recently a $30 million company was declined a renewal of its working capital line of credit and term loan due to failure to meet its required ratio covenants. Management had tried to find replacement financing through a loan broker but had been unsuccessful. Smith Dickson CPAs were called upon to make introductions and to arrange this critical financing.


Firm News – A Musical Gem

organ photo

Debbie Dickson’s love of music, especially playing the organ, is well-known among most of her friends and clients. In a recent article in the “Old Towne Orange Plaza Review,” Debbie and her daughter Brooke Dickson were noted in an interesting article about a 1938 pipe organ at a local mortuary. Shannon Family Mortuary is a client of Smith Dickson and several months ago while visiting Debbie learned about the organ, hidden away upstairs and unused.  Debbie encouraged the owners to restore the instrument, as they have also been doing restoration on the 102 year old building and its contents.


Changes in Deductibility of Meals & Entertainment Expenses

The Tax Cuts and Jobs Act of 2017 has modified a long standing tax treatment regarding the deductibility of meals and entertainment expenses incurred in a trade or business.  Old tax law allowed a 50% deduction for these expenses as long as the taxpayer established the item was directly related to the active conduct of the taxpayer’s trade or business.

The new tax provision, which applies to amounts paid or incurred after December 31, 2017, provides that no deduction is allowed with respect to (1) an activity generally considered to be entertainment, amusement or recreation, (2) membership dues with respect to any club organized for business, pleasure, recreation or other social purposes, or (3) a facility or portion thereof used in connection with any of the above items.  Entertainment expenses directly related to a taxpayer’s active trade or business that are no longer deductible include golf outings, fishing trips, tickets to professional sporting events, and theater tickets, to name a few.

Taxpayers may still generally deduct 50 percent of the food and beverage expenses associated with operating their trade or business.  Providing meals to employees on company premises for the benefit of the employer continue to be 100% deductible.

If you have any questions, please contact us at (949) 553-1020.