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Archive for the ‘Business Tips Of The Day’ Category
Better Business for the Buck
Thursday, December 9th, 2010Business and Bookkeeping Change, Just Like Everything Else!
Saturday, November 20th, 2010Forty-seven years ago on this date, President John Kennedy was assassinated In Dallas. While that is quite a bit of time, it is still only a bit more than half the average lifespan. Yet so much has changed.
For example, there is a great debate right now about whether to renew the Bush-era tax cut for those with the top 2% of income. Do you know what the original rate was in 2003, and what the tax break changes it to?
Do you know what that rate was in 1963?
I use this as an example of how much things change over time. Whether you talk about taxes, sports records, dance steps, or just about anything else, the one thing that stays the same is change.
Most business people don’t have time to keep up with all the changes that affect their livelihood. That’s why they should CONTACT Bookkeepers-Plus (www.bookkeepers-plus.com) . Whether it’s cost-effective marketing, cost analysis, or the cost of filing sales tax incorrectly, they can count on us to keep them up to date and out of trouble.
Oh, by the way, the Top Marginal Rate in 2003 was 38.6%. The tax cut brought it to its current 35%. If the cut is not renewed, the rate will return to 38.6% for income over $311,950.
In 1963, Top Marginal Rate was 91%!
Yogi for Business & Books – Today’s BFO!
Monday, November 8th, 2010Yogi Berra is famous for many things, not the least of which is his Yogi-isms. One of his pithy comments that has been very useful to me is: You can observe a lot just by watching.
As intrinsically apparent as this may be, most of us in business manage to look right by some obvious opportunities in our professions. In the course of our race through the pressures of the day, after all, who as time to focus on details?
For me as a Business Coach, this reality has been a substantial Profit Center. Whether it is noticing inappropriate bank service charges, identifying a production method that dramatically reduces cost, or questioning an inordinately high figure for supplies inventory, I can have the luxury of watching. While the business owner is busy running the business, I can peruse the books and observe a lot. Just give it some thought.
New 1099 Rules = New Business Reporting.
Saturday, October 30th, 2010Time to call your bookkeeper! Starting with your 2011 records (to be reported in 2012), there’s gonna be a whole lot more paperwork on your To-Do list.
Most of you probably get 1099s each year, but now you may be sending them for the first time. 1099s will have to be sent to all vendors who were paid $600 or more during 2011. What’s new is that this now includes corporations that were previously exempt and materials purchases that were also previously exempt.
Everyone who conducts a business has to comply. This includes Corporations, Partnerships and LLC’s, and anyone who prepares a Schedule C (business) or Schedule E (Rental). For example, this will include home day care providers, real estate agents and brokers, multi-level marketers, and even anyone running a part time business.
The Penalties?
As little as $50 per 1099 not filed, and as much as paying the taxes the other guy should have paid.
Start now getting W-9′s from everybody, including corporations, and make sure they give you their Tax Identification Number.
So, schedule more time for Form-Filling, or make better use of your time and CALL YOUR BOOKKEEPER!
A Business and Bookkeeping Tip … It Never Hurts To Ask!
Sunday, October 24th, 2010Desperate to find a new vendor for a critical business process, a not-for-profit client and I shopped the market. Our selection had one problem…its pricing was almost double what we had been paying, so the client asked that they “sharpen their pencil.” They offered a reduction – but that still added over $35,000 to our costs. The CEO and President were ready to bite that huge bullet, but first asked my opinion.
I was clear…the vendor wanted us as much as we wanted them, and they had room to move. We should ask them to drop their price by 50%!
My client thought I was out of my mind, but I convinced them that the vendor would do one of three things: (1) Refuse to move from their offer; (2) Meet our request, or, and by far the most likely; (3) Offer a compromise.
The one thing I was confident they would NOT do was refuse to do business with us, simply because we asked.
So, we asked.
The result? The vendor offered to move more than half the way to our request.
Bottom line? The client’s cost will be LOWERED by about $5,000 rather than increased by $35,000 for the coming year.
Lesson to be learned? Unless the product or service is in much lower supply than the marketplace is demanding, it is never a bad idea to ask. Just be careful that you DON’T convince your supplier to agree to a deal that they will regret…You do not want them to regret that they are doing business with you!
OY VEY! Sales Tax Is Business Meshugas.
Sunday, October 17th, 2010When it comes to some things, ya just never know.
Take Sales Tax, for example:
In most states, the general rule is that products are taxable, but service is not. We often see this in car repairs where the parts are taxed, but not the labor. In a similar vein, photographers, for instance, usually charge tax on the photographs they sell, but not on the labor of shooting the images, cropping, or otherwise modifying them. Makes sense, right?
WRONG!
The finished photo is considered a manufactured product, and thus the entire product, including all processes that are part of its production, are taxable. I have seen more than one photographer get in hot water with the State over this.
Sound complicated? You have NO IDEA!
That’s one example of why entrepreneurs and small business owners should hire a bookkeeper. Let your Business’ Bookkeeper deal with the tsoures instead of letting it make you meshuge!
P.S. If the Yiddish is unfamiliar to you, go to: http://yiddishdictionaryonline.com/
Zero-Sum Business Deals – A Bookkeeping BFO!
Tuesday, October 12th, 2010I once negotiated with the Branch Manager of the manufacturer for the purchase of a state-of-the-art printing press. At the end of this bloody battle, he said “You know you got a good deal when both sides feel like they got screwed.”
I never did business with him again.
There are choices in how to do business – and make money, but I have always found it more satisfying to avoid the Zero-Sum deal, i.e. a situation where what’s good for me is bad for you, and vice versa. There are many ways where both sides win – and long-term success is a much more likely result when both parties benefit from one another’s advantage.
Don’t know how? Get in touch and we can ponder your particular circumstance. Odds are that we can convert that Zero-Sum into a Hero-Sum, where everybody gains!
Bookkeepers Are More Valuable To Your Business Than Lawyers!
Thursday, September 23rd, 2010A few business facts for your consideration.
1) More than a third of small businesses don’t reconcile their checking accounts
2) More than half of small businesses do not handle Workers’ Comp properly
3) Two-thirds of small businesses handle sales tax incorrectly.
In many cases, the consequences are small. But just ONE error can be very costly.
If any of this describes you, call your bookkeeper at once – preferably Bookkeepers-PLUS! That can save you time, money, and worry by making certain that you are playing by the rules.
It may even keep you out of jail!
Not-For-Profit “Business” – Needs a Bookkeeper With Special Expertise!
Monday, September 13th, 2010Not-For-Profit organizations – those with 501c3 tax status.
– What is different about them?
Well, for example:
■ Instead of Customers or Clients, they have Members, or Donors, or Grant Providers.
■ A business may choose to watch different types of sales for its own purposes, but since Donations and Grants often have restricted use, they MUST be tracked.
■ The FASB (Financial Accounting Standards Board) requires nonprofits to report revenues and expenses for each activity – something not required of commercial businesses.
■ Fundraising is a major component of a nonprofit organization’s financial structure.
Why should you care about such minutia? YOU SHOULDN’T!
But every nonprofit SHOULD.
They should talk to Bookkeepers-Plus to lower their costs – and Raise Their Funds!
Business Tip of the Day – Bookkeepers-Plus 082310
Monday, August 23rd, 2010The Platinum Rule – the Rule You Need for Business
We all grew up with The Golden Rule, something on the order of “do unto others as you would have them do unto you.” While this sounds nice, you may notice a flaw in the thinking. I, for instance, like “toys” – you know, mp3 players, computers, techie stuff in general. Get me a new toy and I’m a happy camper. My friend Anne, on the other hand, uses technology no more than she must, but loves gardening. In this context, doing unto her as I would have her do unto me is doing her no favor at all.
Thus, The Platinum Rule: Do unto others as they would have you do unto them!
Simple, really. Give people what THEY want, not what YOU want.
