• Accounting
        • Your financial statements should show a complete picture of your business, and lay the foundation to help you create a strategy for the future.
          READ MORE>

        • Tax
        • Tax returns prepared to ensure we minimize your liability and keep more of your earnings over the long term.
          READ MORE>

        • Business Advisory
        • From proper entity selection at the inception of a business to developing an exit strategy, we are here to guide you in making informed decisions that are goal driven and take into consideration the materiality of your financial situation.
          READ MORE>

        • QuickBooks
        • We maximize your QuickBooks investment by customizing the software to meet your specific needs and industry best practices.
          READ MORE>

        • Litigation Support
        • We employ strong analytical and communication skills to produce evidence that supports your position in cases of a dispute or negotiation.
          READ MORE>

        • M&A Advisory
        • Whether you are selling, acquiring or expanding, we are well equipped to ensure you respond to opportunities swiftly and with confidence.
          READ MORE>

        • SJG
        • Manufacturing & Distribution
        • Success in manufacturing and distribution hinges on your ability to manage numerous details with accuracy and foresight into how they impact current and future operations.
          READ MORE>

        • Consulting Services
        • You focus on your core competencies, customer service and strategy and we’ll keep you from getting caught off-guard by daily financial tasks or overwhelmed by growth.
          READ MORE>

        • Medical
        • Patient care is your primary concern. Providing the best clinical experience for your patients continues to get more difficult and costly. Delivery models are changing from fee for service to quality based.
          READ MORE>

        • Legal
        • Running a legal firm is a balancing act with high stakes. Your reputation hinges on your ability to support clients with responsiveness and accuracy.
          READ MORE>

        • Real Estate
        • Real estate is characterized by large material gains and losses. Every transaction has the potential to impact your accounting and tax situation.
          READ MORE>

        • Technology
        • Perhaps more than any other industry, technology companies must have an infrastructure built to scale. A culture of continuous iteration requires an ability to account for a fluctuating profit margin.
          READ MORE>

        • Professional Services
        • With a consultative, integrated approach to accounting, tax and consulting services for businesses and individuals, we work hand in hand with you to achieve your goals.
          READ MORE>

        • Renewable Energy
        • Renewable energy is an area of growing interest for businesses, as well as the advantageous tax incentives when transitioning operations to include new energy solutions. Read our series of articles to LEARN MORE.

  • CAREERS
  • LOCATIONS

SJG Blog

How Does Sequestration Affect You?

 

For many, the word “sequestration” is just another overly-hyped term being thrown about the halls of D.C. that doesn’t actually have any real effect on the average American citizen. However, if you know anything about how economics works, then you understand that no matter where large cuts like this take place, they ultimately affect all of us. Call it the trickle down effect or whatever you want: cuts in the government means cuts for small businesses and individuals, both directly and indirectly.

For example, the IRS announced that portions of the Affordable Care Act that offer some health care incentives for small businesses will have cutbacks. This means that health care benefits are now a little more expensive for employers. This could result in  lowered benefits or benefits that are eliminated in full.

Another direct impact is on individual and small business contractors who work with the government. With such large cutbacks, many of these contractors will have significant reduction in work, and some completely cancelled contracts. Additionally, employees of government agencies are now receiving notifications of furloughs which range from a couple of days to several, depending on the government’s definition of necessary services.

But if you aren’t a government contractor or employee, how will these cuts impact you? Of course some of these people are your clients, neighbors, customers or vendors. Plus any reduction in government services means inconveniences for citizens. The Huffington Post broke down a few of the most obvious sequestration effects:

  • The FAA will eliminate midnight shifts at some smaller airports. Additionally, some of the larger airports will need to close runways which will likely result in significant delays and some cancellations.
  • Though IRS furloughs won’t happen until the summer, there will be some impact immediately such as delayed responses to taxpayer letters and less help from call centers and assistance centers.
  • Funerals for veterans at Arlington National Cemetery will be reduced by an average of 160 a week, resulting in delays for deceased troops from wars past.
  • The Coast Guard rescue aircraft will be deployed fewer hours and patrols will be reduced, focusing primarily on emergencies.
  • The Food and Drug Administration estimates there will be 2,100 fewer food safety inspections.

At the end of the day, the sequestration won’t bring everything to a grinding halt, but it will mean a reduction in salary for many, delays in services for all, and some inconveniences that will hopefully never go beyond minor. Like any other time in recent years when money has been tight, it’s important to plan appropriately. If you’ve got questions about how this could impact you or your business, give us a call.

Share This:

Facebook
Twitter
LinkedIn

Subscribe to Our Newsletter

Recent Posts

Scroll to Top