|
August Opens Lower
August has gotten off to a rocky start as independent grocers reported their same store sales were down 3.81 percent in the first week of the month compared to the same period in 2015. Customer counts were down 0.29 percent.
According to the Bureau of Labor Statistics’ July consumer price index report, food at home prices continue to fall, dropping 0.2 percent during the month of July. Individual categories that increased were fruits/vegetables (+0.3 percent) and nonalcoholic beverages (+0.3 percent). The other four categories decreased during the month: meat/poultry/fish/eggs (-0.6 percent), dairy (-0.4 percent), cereal/bakery (-0.2 percent), and other (-0.2 percent).
In the past 12 months, food at home prices have fallen 1.6 percent.
All items were flat in July and have increased a mere 0.8 percent in the past 12 months. Food at home and gasoline are the main drivers of the slow inflation rate.
| |
| Same Store Sales
% Change from last year
| |
|
Same Store Sales – Previous Months
| |
|
2016 Independent Grocers Financial Survey Released
FMS and the National Grocers Association (NGA) have released the results of the 2016 Independent Grocers Financial Survey, covering fiscal year 2015. This joint study polled independent supermarket operators in 38 states and four Canadian provinces on their financial performance and business strategies, and provides an in-depth look at the economic, political, and competitive landscape in which these retailers operate. Fiscal year 2015 proved to be an improvement over 2014 with both sales and margins having increased despite a rise in expenses and stagnant food-at-home prices.
To learn more about the survey and how you can get a copy, click here.
| |
|
BGBC Partners, LLP Tax Update: Record Retention
As a grocer, you know how long you can hold perishable inventory before you’re forced to discard it. Well when it comes to determining how long you should hold your tax records, it’s not that simple! In this segment of our Tax Update we will give some tips and considerations to help you formulate a record retention policy.
Most grocers I know dread the process of sorting through receipts and various other documents necessary to file their income taxes. Whether you have one document that you use to prepare your tax return or 500, one question continues to arise: How long do I need to keep my tax records for? Following are some guidelines which may help you answer this common question:- Income Tax Returns and Related Items: Keep all federal and state income tax returns indefinitely and supporting documents (i.e., those items confirming your income and/or deductions) for a minimum of three years after the return's filing date. The more prudent route is to keep supporting documents for six years. Why? The IRS can assess additional taxes within three years of its filing date, but has up to six years in which to make a tax assessment if the IRS determines that a substantial amount of income (more than 25% of gross income) has been omitted from the return.
- Mailing Receipts: Keep with your file copy of each tax return the U.S. Postal Service receipt — i.e., the registered mail receipt —showing the date the return was mailed. If your return is filed electronically, keep a copy of the electronic filing confirmation with a printed copy of the return. In the event the return is misplaced or lost, this documentation will save you from penalties.
- Residential Property Records: Keep settlement records from all of your home purchases and sales in a safe place. This will help you determine basis for any future sale and gain determination. In addition, keep records of the amounts that you spend for home improvements with this file. These records will provide documentation of your basis in the house if and when it comes time to compute your taxable gain.
- Stock and Bond Records: Keep records of your investment (e.g., stock, mutual funds, and bonds) purchases. Besides providing you with a date for determining the type of gain — long term versus short term — these records establish your basis in the investment and help to compute the gain/loss when you sell. In addition, keep records that show a return of capital on your investments.
- Depreciation Records: For any rental real estate or depreciable business property that you own, keep records of the property's cost, the purchase date, the method used to calculate depreciation, and a schedule of all depreciation claimed on the property in previous years. Maintain these records until you sell or dispose of the property. Once you sell the property, keep these records with the tax return on which you report the sale.
- Divorce or Separation Records: If you find yourself in either of the aforementioned, be sure to make and keep copies of any and all records kept by your spouse that affect you, including jointly filed tax returns. Access to the records may be difficult if the relationship is strained. Retain copies of the divorce decree in order to substantiate alimony and child support payments.
- Personal Records: Keep a permanent file of personal records — such as divorce agreements, copies of estate and gift tax returns under which you received property, etc. – since they can provide a basis for determining your tax liability when you dispose of the property.
- Other Records: There are other situations in which you will benefit from keeping records. For example, if you have made nondeductible contributions to an IRA or Roth IRA, maintaining records of these contributions will facilitate proving your tax liability when funds are withdrawn from the IRA
One of the easiest and best space-saving ways to retain your records is to scan all of your documentation into PDF files by year and store your records electronically. This does not take up any physical space and it is much easier to keep and find your records when stored this way. If storing your information electronically, be sure you have it saved on two different devices as computers crash and information can be lost.
Lastly, if you are working with a CPA, he or she may provide you with an electronic / PDF copy of your tax return rather than a paper copy. Your CPA should also have all relevant tax information saved and retained for the proper number of years. Each CPA firm has their own record retention policy that mirrors or is more stringent than the ones laid out above.
As you can see, determining how long to keep tax records is a little different from determining how long to keep lettuce. But with a trusted tax advisor helping you, you can focus on the groceries while they focus on the records!
BGBC Partners, LLP is a full service certified public accounting and business consulting practice.
For more information, contact Brad Bell, CPA or Steve Reed, CPA/ABV/CFF at BGBC Partners, LLP (317-633-4700).
| |
|
| For More Information,
Contact Mark Ehleben
877-435-9400 x1402
marke@fmssolutions.com
| |
|
