Zurel's customers in the U.S. are major wholesale florists serving the traditional retail market. Among these are Kennicott Bros., The Roy Huff Company, Platz Wholesale Flowers and LSP Wholesale Florists. Internet customers include Grower Direct and ProFlowers.com. In fact, Zurel is Grower Direct's primary supplier of products from the Dutch flower auctions. On its website, Grower Direct says, "Zurel has proven itself to be a leading edge force in today's wholesale floral industry."

Biggest Potential for Growth

Zurel America had shipments from Italy and Holland in the air on September 11, which were redirected to airports outside the U.S. "I was fearful there might be ongoing problems with international. Air-freight," points out Laird. "But after the initial five days when air traffic , was  halted, we have not been affected."

As for any economic impact on the company, Laird says, "Flowers are recession proof I grew up in the business and even during the depression people in the flower industry were able to continue in business. When times are bad, flowers make people feel better."

And while fresh cut flowers are still more popular in Europe than in America, things are changing. "It's true‑flowers are more prevalent in Europe because of the culture and huge consumer demand,"

says Laird. "Germany boasts the highest consumption rate about $49 per person per year. In comparison, Americans spend an average of $24 per person per year on all floral goods including flowers and potted plants. Our biggest potential for growth remains in America, however.

"There is a huge customer base here," he continues. "Martha Stewart has had a positive impact on the industry by promoting the widespread use of fresh cut flowers in our everyday lives."

Some of the more unusual flowers Zurel imports and distributes in America include giant tulips from France, Ruscus and Ginesta from Italy, and multi ‑colored wax flowers from Australia.

A Product Worth‑Looking At

When Zurel closed its New York office in January 2001, the administrative and accounting functions were transferred to Chicago. A decision was made to use QuickBooks software. "We hired a firm who thought they had the necessary QuickBooks experience, but they did not," says Laird. "We later found we needed a professional who could help us straighten out our QuickBooks files."

David clicked onto Intuit's website and found KRD's name on the approved list of professional QuickBooks advisors. The rest, as they say, is history.

"I sent the firm an e‑mail and partner David Diamond responded the next day," Laird recalls. "Since David and the firm did such a great job correcting our software problems, we decided to hire them as our outsourced accounting staff. That allows me to concentrate on sales, marketing and the overall business strategy of the company."

Laird says he is quite satisfied with the entire KRD team. "When I met David he appeared to be forthright, knowledgeable, detail oriented and he communicates very well. When David promises something will be completed by a specific date, you can be sure it will be done on time. For all those reasons and more, I feel assured that our business is in good hands with David and the rest of the KRD team."

Other KRD staff who work with Zurel America include CPA Chris Cameron, who prepares monthly financial statements and performs QuickBooks training; bookkeeper Christine Wells, who works on‑site handling accounts payable; and firm administrator Sharon Bree, who oversees collections.

And while the 2001 version of QuickBooks satisfies Zurel's current bookkeeping needs, the company is reviewing new QuickBooks products and updates to manage the business' finances more effectively and handle future growth.

"We do at least 25,000 transactions per year," says Laird. "That many transactions could slow a system down, but QuickBooks has no problem handling our heavy workload."

Give Your Children a Bright Future with Illinois' Bright Starts' College Savings Program and Receive a State Income Tax Deduction Among the significant benefits of the state's Bright Star' College Savings Program are tax‑deductible contributions, tax‑deferred earnings growth, federal tax‑free qualified distributions, investment options and professional investment management. And, as an added incentive, starting  in 2002 Illinois residents can receive a state ‑income tax deduction for the amount contribute to a Bright Start college savings account.

Administered by Illinois State Treasurer Judy Baar Topinka, Bright Start is a qualified tuition program under Section 529 of the Internal Revenue Code. Covered expenses include tuition, room and board, books, fees and equipment.

Tax Planning tip for Illinois residents. Consider contributing to the plan prior to paying any current year college expenses and then paying those expenses with your contributed dollars. By doing so, you (as an Illinois resident) can receive a current‑year state income tax deduction irrespective of how long the contributed money has resided in the Bright Start account.

Example: John and Mary Smith put $8,000 into a Bright Start College Savings Program. Two weeks later, they receive their son's tuition bill for $7,500; They simply submit the bill to the Bright Start Program along with the appropriate withdrawal forms and Bright Start sends the tuition payment directly to the college or university. On their 2002 state income tax return, John and Mary are allowed a $7,500 deduction for qualified tuition expenses.

College Students Should consider this strategy as well. For students who are still dependents, it may be more beneficial for them to allow their parents to contribute the money to the account in order to benefit from the state income tax deduction.

Tax Planning Tip #2. You can pay tuition expenses by credit card and then seek reimbursement from your Bright Start account. By doing so, you may accumulate enough credit card reward points over the years to pay for your own spring break' vacation, hopefully somewhere warm!

The Bright Start plan has a high contribution limit of $235,000, excluding accumulated earnings. An account can be opened for as little as $250 ($25 if an automatic contribution plan is set up). And, the beneficiary can be changed at any time to another family member.

Parents who have previously established Uniform Transfer to Minors Act (UTMA) custodial accounts for the purpose of covering future college expenses may want to consider transferring those assets to a Bright Start account in order to receive the tax benefits afforded. While the Bright Start College Savings Program is a great way to reduce taxes, be aware that for account over‑funding or non‑qualified withdrawals a ten percent penalty would apply in addition to normal income tax withholdings on accumulated earnings. For more information on the Bright Start College Savings Program or alternative college savings plans, please contact Scott Coleman at extension 137. Note, if you are a resident in another state, your state may offer a similar tax­ advantaged plan.

This article was contributed by Scott E. Coleman, JD, CPAIPFS, CFP®". Scott is a principal member and CO‑fO1117dcr (of KRD Financial)

Meet Jon and Jodi Segal, CPAs

A member of the audit/accounting team, Jon Segal returns to the firm of Kutchins, Robbins & Diamond, Ltd. after a period of six years. During the interim, he worked as a Senior Manager for one of Chicago's top 15 accounting firms and as the CFO of an Inc 500 privately held company. Jon has widespread experience working in the areas of real estate, manufacturing, distribution, construction, printing and professional services. A certified public accountant, Jon obtained his Bachelor's Degree in Business Administration from Loyola University. He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society. He has invested in many real estate ventures and owns and operates several residential real estate properties. In his spare time, Jon enjoys tennis, golf, classic movies and fine dining.

Certified public accountant Jodi E. Segal is a vital member of the KRD tax team, working out of both the Northbrook and Schaumburg offices. She joined the firm in 2001 after serving in public accounting for five consecutive years.

Jodi is a member of the Illinois CPA Society and has experience in construction, not‑for‑profits and manufacturing companies. She earned her Bachelor of Science degree in Accounting from the University of Iowa.

When she isn't working, Jodi enjoys reading, golf and gardening. She and her husband, Jon, reside in the greater Barrington area.