News & Events

Below is a link to an article from Microsoft's Business Center about our economy.  Craig Underhill is one of the business people interviewed in this article. http://www.microsoft.com/midsizebusiness/industries/service-firms-optimistic-about-weathering-the-economic-cycle.mspx

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I N S I G H T S

Executive Corner

Our resident Certified Strategic Performance Measurer and Emperor of Enlightenment, Craig Underhill attended a Human Resources conference called "Meet the Millennials" in San Francisco. 

We asked him to share some of the key insights he gained from the event. 

Craig, you're an accountant.  What are you doing at an HR seminar? 

Well, I am an accountant but I like to go beyond measuring historical results.  I like to help my customers improve outcomes and achieve their business goals.  It is virtually impossible for any organization to accomplish anything without good people so I help our customer's design systems that build effective teams that are informed, accountable and rewarded appropriately.  I actually spend a great deal of time learning about HR issues and keeping track of the latest trends in that area.  The millennial employees (born between 1982 and 1996) have just started joining the workforce and they are already having a big impact.  Their generation includes 80 million future managers, employees, and customers and we need to know how to attract, retain and sell to them. 

What's the big deal about these "Millennial's" we keep hearing so much about?  We heard the same kinds of warnings about the "Generation X" people and they haven't put us out of business.

That is the interesting thing.  As a millennial parent, it was revealing for me to hear about some of the expectations that we have helped to foster in our children.  Think about it.  These adults are all used to receiving trophies for just playing a team sport recognition and reward for these children was not tied to outcome.  In addition, this generation has determined that work and life do not need to be "balanced" rather they see them as blended together.  They expect work to be entertaining and stimulating and have little tolerance for routine.   They also have been multi-tasking practically since birth and as a result are highly efficient and more productive than the generations before them. 

This is the MySpace, Facebook generation and they are used to being able to customize their environments (and even their ringtones) to fit their needs and personal style.  They are seeking a "one-sized fits one" approach to benefits, employment offers, and work day routines.  They want to be treated as an individual. 

They also are used to playing video games in which you obtain a skill to advance to the next level of difficulty.  They expect their careers to be like that and will work to build a portfolio of skills that can help them achieve their goals. 

We saw some informative statistics about the workforce including one on employee turnover showing that the average tenure at a company today is 3.6 years for an employee versus 10 years that was the norm during the 1980s.  This means that companies need to put systems in place for training and motivating staff and need to be prepared for recruiting as a permanent, on-going activity. 

So what are we supposed to do about this generation going forward?  What suggestions did they offer?

After listening to a panel of three millennials, one of the things we all realized was that their needs and requirements aren't very different from our own.

• They want to have a voice.
• They want to be included.
• They want to be valued.
• They want opportunities to be creative.
• They want feedback.

Who doesn't want all of these things in their job?

The difference is that they are not afraid to change jobs until they locate the right fit.  They just aren't as tolerant or as patient as the generations before them. 

How will you apply what you learned to the work you do for your customers?

We will incorporate these insights into the services that we are already offering including Tri-Metrix (an aid to indentifying new hires), reward system design and mentoring.  These millennial's will drive us to take afresh look at many of the practices inside our own firm and in those of our customers.  But most of all, we are really looking forward to working side by side with members of this new generation and learning more about their unique perspective.

If your vineyard suffered crop losses or permanent damage from the extreme frosts of spring 2008, you could be eligible for a variety of tax benefits.

Deferred Reporting of Insurance Proceeds

An election is available to defer reporting of crop insurance proceeds until such time as your vineyard would have reported the normal sale of the grapes. To take advantage of this deferral period, Internal Revenue Code Section 4519(d) and Reg. 1-451-6 provide for an election to be made on the taxpayer's return for the year in which the proceeds were received.

Wineries which use estate grapes to produce their own wine can qualify for deferred reporting under Internal Revenue Code Section 1033. When inventory is involuntarily converted to cash (in this case through insurance proceeds), businesses are granted a two-year period in which they can use this cash to obtain replacement inventory. After this period, the proceeds are still not recognized until the "replacement" inventory is eventually sold as bottled wine. This can extend the reporting period for an additional 1-3 years or more, depending on the aging period of the wine.

Immediate Deduction for Vineyard Repairs

Costs incurred to replant small quantities of vines permanently damaged can be deducted immediately as repairs expense. Provided these costs are minor in relation to the overall capital cost of vineyard as a whole, such costs are not required to be capitalized as a new asset and depreciated over their estimated useful lives.

Liberalized Capitalization Rules for Vineyard Replacement

For situations in which an entire vineyard block is damaged and must be replanted, the original cost of the vineyard (less depreciation taken in previous tax years) can be written off immediately in the year of the loss. In addition, the replanting development project can be exempt from the normal capitalization rules under Section 263A. Direct materials and labor costs would still need be capitalized, but normal farming costs during the pre-productive period may be expensed as incurred.

IRS Circular 230 Disclosure : To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalty or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Once again, BDCo has teamed up to support The Assistance Dog Institute of Santa Rosa, an organization that trains service dogs and trainers to help people with special needs. Now, these canines can add a new service to their resumes: Protecting vineyards from the stealthy, havoc-wrecking mealybug. Unlike some vineyard pests, mealybugs are almost impossible to detect with the naked eye. By the time they grow big enough to see, they've already done enormous damage. But dogs in the Institute's program don't need to see when the can sniff, and they've learned to sniff out the mealybug before the vines are harmed. As avid dog lovers with deep roots in Wine Country, we are thrilled and honored to support an organization that is making such a meaningful contribution to the community.