McGowen Hurst Clark & Smith, Tax, Audit, Consulting, Financial Services, Des Moines, CPA

Contact: Rose Breuss
Director of Marketing
1601 West Lakes Parkway
West Des Moines, IA 50266
515-288-3279

For Immediate Release
January 21, 2008

McGowen, Hurst, Clark & Smith, P.C.
Named 2007 Business of the Year

WEST DES MOINES - We are pleased to announce that McGowen, Hurst, Clark & Smith, P.C., certified public accounting and business advisory firm, was named the 2007 Business of the Year in the small business division awarded by the West Des Moines Chamber of Commerce at the Annual Dinner held January 17 at the Des Moines Golf and Country Club.   This is the third year the WDM Chamber has presented the Business of the Year award, which is based on corporate citizenship.    Bob McGowen, Managing Partner, accepted the award on behalf of the firm. McGowen said, “I am very proud of our team members who actively volunteer their time and resources to varied organizations for the betterment of our community.”

In the past year, the firm added a work benefit giving each employee eight paid hours of Volunteer Time Off (VTO), to assist a cause of their choice.   “In providing Volunteer Time Off, we want to support our employees in their efforts and incorporate an attitude of helping others in the work culture of our firm”, said McGowen.

The firm participates and supports many fund-raising events throughout the year. Rose Breuss, Director of Marketing, said, “We work with many non-profit clients, and as our relationship builds, we become more than their accountant, we become their partner dedicated to their cause.”     For the past 17 years, MHC&S has formed several bowling teams to participate in the Big Brothers/Big Sisters Bowl for Kid’s Sake fundraiser.   “I always marvel at our accountants as they take time off during the busy tax and audit season to bowl and help make this event a success,” said Breuss.

McGowen, Hurst, Clark & Smith, P.C. is a full-service certified public accounting and business advisory firm with offices in West Des Moines and Winterset. They are a member of CPAmerica International, an exclusive international association of leading independent accounting firms.

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News Release

For Immediate Release
Photo Opportunity
December 15, 2007

Contact: Rose Breuss
Director of Marketing
McGowen, Hurst, Clark & Smith
515-288-3279

Local CPA Firms Builds 650-Foot Food Chain to Help Make the Holidays Merry

WEST DES MOINES – The employees of McGowen, Hurst, Clark & Smith P.C., a local CPA firm, have collected food donations and built a 653-foot food chain throughout the office complex. The six year-old office building, located at 1601 West Lakes Parkway was built in a unique design resembling three diamond-shaped structures all connected. The food chain twists and turns throughout the maze-type hallways of the firm.

Each year the firm adopts a holiday project in an effort to make the Holidays a little merrier for those in need. This year, the Firm chose to collect and donate food to the Food Bank of Iowa and the Winterset Food Pantry. Rose Breuss, Director of Marketing commented, “Our food chain was started in mid-November and our team members have enthusiastically contributed food each week. In addition, many of our clients, who have seen the food chain grow have also opted to donate food items and/or cash to help us reach our goals. It is just a good feeling, knowing you are helping someone who lives right in your own community.”

The Winterset office of MHC&S has also built a food chain with all items to be donated to the Winterset Food Pantry. All items will be delivered to respective food pantries on Wednesday, December 19, just in time for the holidays. Breuss remarked, “For many years, CPAs have been known as “bean counters”, and I guess it’s true as we have literally been counting the many cans and jars of beans…as well as other types of food.

WEST DES MOINES – On Thursday, October 16, McGowen, Hurst, Clark & Smith P.C., certified public accountants and business advisors, hosted a breakfast forum, “Confessions of a Convicted Embezzler” at the West Des Moines Marriott, 1250 Jordan Creek Drive, WDM, beginning at 7:30am.

Barry Webne, an experienced corporate controller, was our featured speaker. Barry brought a unique perspective because he was convicted of bank fraud for embezzling more than $1 million over a four-year period. Since his release in 1997 from a federal prison, Barry has been sharing his extensive knowledge with others to help put an end to financial fraud.

Justin Allen, Assistant District Attorney, discussed the legal proceedings and his experience as a litigator in prosecuting fraud-related crimes. In addition, Joni Tonnemacher, a forensic partner at MHC&S, shared warning signs of fraudulent activity and the fraud protection services provided by our firm.

McGowen, Hurst, Clark & Smith, P.C., a full-service CPA and business advisory firm, has provided financial services to clients for over 60 years with offices in Winterset and West Des Moines.

WEST DES MOINES – With an accelerated tax depreciation schedule, many building and property owners are able to save money with an engineering-based Cost Segregation Study. While the cost of commercial real estate typically depreciates over 39 years and residential real estate depreciates over 27.5 years, a cost segregation study will help identify shorter-lived assets whose depreciation periods are 5 to 15 years, resulting in sizable income, tax benefits.

Items of real estate property that qualify for accelerated depreciation usually include carpeting, fencing, electrical systems, millwork, and office furnishings, in addition to security systems, landscaping, ventilation and exhaust systems and more. Reducing tax lives from 39 years to 5, 7, or 15 years (using the accelerated method) allows a business to significantly defer its tax liability and increase its cash flow.

Dave Hurst, tax partner at McGowen, Hurst, Clark & Smith, P.C. remarked, “We have provided cost segregation studies for many of our clients, and invariably their tax benefits have been substantial. Basically, what we do is unbundled the costs and assign them appropriately.” Hurst cited one apartment complex, whose buildings had a cost of $18,500,000, which received approximated $750,000 in tax benefits by having a cost segregation study completed.

According to Hurst, a cost segregation study will reap the greatest benefits if the following conditions are met:
- Your property costs more than $1,000,000.
- You have owned your property for less than 10 years.
- You are in a high tax bracket.
- You are not planning to sell the property in the near future.

Some of the property types or businesses that lend themselves well to accelerated depreciation include: manufacturing, car dealerships, restaurants, retail, theatres, golf courses, hotel/motels, warehouses, grocery stores, strip malls, etc.

The key to a successful cost segregation study is to combine the expertise of architects, engineers and certified public accountants, who are experienced in cost and construction estimating, tax codes and providing detailed documentation outlined by the IRS. Mike Brinker, Partner at McGowen, Hurst, Clark & Smith, P.C. remarked, “In an effort to provide a thorough and comprehensive study, our team of cost segregation specialists implement a seven-step approach.” This approach consists of:
- Examine architectural and engineering drawings and specs
- Analyze cost data
- Identify assets qualifying for shorter life classification
- Physically inspect the property
- Allocate direct and indirect project costs
- Recalculate depreciation schedules
- Prepare various tax reports and issue final report

Hurst said, “At our firm, we realize how important it is for our clients to take advantage of every tax opportunity and providing them with a cost segregation study is just one more way to assist them. The McGowen firm have completed more than 30 cost segregation studies in the last two years, yielding millions of dollars in tax benefits, with an average return on investment (ROI) of 13:1.”

WEST DES MOINES– Barbara Hein, CFP®, Manager of Wealth Advisors of Iowa, LLC, a financial advisory and investment company, recently completed a specialized educational program in divorce planning and is now a Certified Divorce Financial Analyst.

Barbara is trained to provide financial assistance to people contemplating or involved in a divorce. Barbara helps clients make better financial decisions regarding settlement options for dividing pensions, marital property and awarding of child and spousal support.

Barbara is also a Certified Financial Planner and has over 20 years of experience in the financial services industry.

WEST DES MOINES - McGowen, Hurst, Clark & Smith, P.C. a certified public accounting and business advisory firm was delighted to participate in the 2007 Big Brothers Big Sisters Bowl for Kids’ Sake event in February. “Although this event falls in the middle of our tax and audit season, we are delighted to participate and support the excellent work of Big Brothers Big Sisters of Central Iowa,” said Bob McGowen, Managing Partner.

This was the 17th consecutive year that MHC&S has participated in the annual fund-raiser. This year the MHC&S team members contributed $2,115, helping Big Brothers Big Sisters meet their goal of $125,000. Althea Holcomb, CEO of BBBS of Central Iowa said, “We are thrilled and grateful to have the support of McGowen, Hurst, Clark & Smith, who also happens to be our CPA firm.”

In addition to the Bowl for Kids Sake event, the CPA firm also sponsors many local charities and events throughout the year including Habitat for Humanity, the Des Moines Arts Festival, Race for the Cure, as well as engage in a Christmas project where employees identify an organization in need and assist them with their cause.

MHC&S has offices in West Des Moines and Winterset with more than 40 professionals and 10 partners.
A member of CPAmerica International, Inc., the firm’s niche areas includes health care, trucking, real estate,
non-profits, and financial advisory and investment services.

Local CPA Firm Awarded High Rating

WEST DES MOINES – McGowen, Hurst, Clark & Smith P.C., certified public accountants and business advisors, have successfully completed an independent peer review of their accounting and auditing practice – receiving an “Unmodified Report, Without a Letter of Comment” -- the highest rating possible.

The peer review was conducted under professional standards by the American Institute of CPAs (AICPA). The AICPA mandates that participating certified public accounting firms undergo a quality review of their practice every three years. The independent CPA team that performed the review concluded that MHC&S complies with the stringent quality control standards set by the AICPA.

Reviewers evaluate the firm’s compliance regarding several functional areas including technical standards of accounting and auditing practices, hiring policies, staff engagements and professional development. An independent assessment of quality control policies and procedures is conducted, inspecting the working papers and reports on a representative sample of accounting and auditing engagements. Also inspected were administrative files and records, and various personnel were interviewed. As part of the evaluation, a peer reviewer considers what the firm has done to ensure it hires only qualified people, properly supervises them, provides them with professional training and technical resources, and advances them to responsibilities they are capable of handling.

Bob McGowen, Managing Partner, said, “This is our 8th Peer Review, and each time our firm has received an unmodified report. I am very proud of our team, their drive for excellence, and the quality service we provide our clients.”

McGowen, Hurst, Clark & Smith, P.C., a full service CPA and business advisory firm, has provided financial services to clients for 60 years with offices in Winterset and West Des Moines.