Categories
Operations

7 Reasons to Hire Someone to Do Your Taxes

Article Contributed by Dominique Molina

Small business owners know that, especially during those first few years you’re in business, it’s important to save money where you can. Many tasks – from sweeping the floors to keeping the books – fall squarely in your lap. The savings realized by not hiring a janitor or a bookkeeper then go into growing your business, with the ultimate goal of being able to afford to hire someone to do those things for you.

When it comes to taxes, however, the savings isn’t as cut and dried. Yes, it will cost you to have someone do your taxes, but in many cases the additional tax savings will more than pay for it.

Here are some reasons why you should seriously consider hiring someone to do your taxes:

  1. Your business includes large amounts of equipment or inventory. If you’re a consultant who works from home and doesn’t have to deal with specialized equipment, maintain an inventory, or worry about other capital expenses, you might not need someone to do your taxes. However, each of these expenditures has significant tax implications. The difference in how you treat these expenses can mean literally thousands of dollars of difference in your tax bill. Paying an expert to make sure those expenditures are optimized for tax purposes will pay for itself.
  2. You have employees. The moment you hire someone as an employee, your tax situation can change dramatically. You have certain obligations you need to meet, including things such as payroll taxes. You need to make sure those things are handled correctly. Your tax expert or accountant can help you with that process when you first start to hire employees, and then again at tax time. If you primarily use contract labor, however, the situation can be much simpler and may not require that kind of expertise.
  3. You sell retail goods. The moment you sell retail goods, you’re required to start collecting sales tax. Sales tax collecting and reporting can be a significant task, and if you mess it up you can face significant fines and penalties. Trust a tax professional to handle your sales tax function.
  4. You operate in a highly regulated field. Some small businesses have to deal with more government oversight than others. If your business falls into that category, chances are pretty good that there are some tax implications, as well. A tax expert can help you make sure you’re meeting all of your reporting and compliance requirements.
  5. You want to plan your tax strategy. Unfortunately, most small businesses don’t treat their tax situation in a proactive manner. They simply file their taxes each year, and then forget about them until the following year. This is a mistake. By developing a solid tax strategy, you can save hundreds or thousands of dollars each year in your tax burden. A tax expert can help you map out those important business decisions ahead of time.
  6. You’re unsure about what can and can’t be deducted when you work from home. A home office can be a tremendous asset in terms of your tax situation, but there are very stringent rules about what is and isn’t deductible about a home office. The same goes for using a personal vehicle for business purposes. A tax professional can help identify those items that are eligible for deduction, tell you what you need in the form of documentation, and help you avoid making deduction errors that could result in significant fines.
  7. Your business could benefit from financial advice. Many tax preparers are also skilled accountants. They can help you examine your business on a regular basis to make sure that you’re in the best tax situation, of course. But they can also help you to analyze various components of your business so that you identify where there are opportunities for improvement or increased efficiency. An accountant who’s an expert at analyzing business data will save you money both in taxes and in your day-to-day operations.

Many small business owners are quite capable of doing their own taxes. This is especially true of service-based businesses, where there’s not a whole lot going on in terms of complexity. That said, most small businesses can realize at least some savings by hiring someone to do your taxes. It’s simply a matter of finding a tax professional to work with that you trust, that’s experienced dealing with businesses like yours, and who fully understands the trends and changes to the small business tax landscape.

About the Author

Dominique Molina is President of the American Institute of Certified Tax Coaches, an organization of tax professionals who are trained to help their clients rescue thousands of dollars in wasted tax and is a registered educator with the National Association of State Boards of Accountancy (NASBA). In addition to her blogging and speaking engagements, Dominique also provides engagement letter, accounting marketing and a range of accounting templates to her clients.

Categories
Newsletter

BIZNESS! Newsletter Issue 129

BIZNESS! Newsletter

 

divider.gif

 

Cover Story

Glowing Handlebar

The Glo-Bars is a very clever handlebar system that integrates rechargeable LED lights to the bars of the cycle. These lights not only illuminate the track for the cyclist..

Continued in BIZNESS! Newsletter Issue 129 >>>

 

Top Stories From CoolBusinessIdeas.com

– Fashion for the Unconventional
– Beam Brush App Equipped Toothbrush
– Hamburger Makeup Novelty
– RelayRides – Rent Cars From People Near You
– Handpresso For Road Warriors

Continue reading these top stories in the BIZNESS! Newsletter >>>

 

Top Stories From GetEntrepreneurial.com

– Live Your Talents, Love Your Work
– Why Do People Buy?
– Telemarketing Tips For Entrepreneurs
– What’s Your Choice?

Continue reading these top stories in the BIZNESS! Newsletter >>>

 

divider.gif

 

Subscribe Now

Can’t stand your demanding boss anymore? Start your own business! Before that, be sure to subscribe to our free informative newsletter. BIZNESS! is jointly published by CoolBusinessIdeas.com and GetEntrepreneurial.com What you get in BIZNESS! – the latest new business ideas, small business advice, business tips and info and entrepreneur resources. Everything you need for your brand new business!

Free 29-pages PDF ebook (worth $38) – “Awesome Business Ideas of 2011” – included with your subscription. This is a special feature report on the smart and innovative business ideas that the world has seen last year. Learn more here.

Subscribe

Categories
People & Relationships

The Self-Improvement Myth: 9 Reasons We Don’t Know How to Develop Our Strengths

What do you do when you’re confronted with something you’re not good at?

Some people get discouraged and quit. Others keep doggedly working to get better at it, and in the process become more “well-rounded” human beings.

Conventional wisdom says that the second response is the healthy one. But the empirical evidence suggests that it’s people who specialize in an area of aptitude who are successful and happy, not those who focus their energies on becoming “well rounded.”

As a psychologist, I was trained to assess and treat what was wrong in peoples’ lives, to help people accomplish this business of “self-improvement.” But something changed in me about thirty years ago. I grew very weary of working on what was wrong with people and became more interested in what was right with them (i.e., their strengths).

It was this change that ultimately led me to working with Lynda-Ross Vega to develop Your Talent Advantage (YTA), a sophisticated psychological assessment that accurately assesses a person’s strengths and forms the basis of a roadmap for developing them in their lives.

Many times after I have given presentations about YTA, and even after I have just delivered a person’s assessment results, I have been met with, “Okay. That’s interesting, but so what?” As in, “Now that I know this about myself, of what practical use is it?” I am convinced that this response is because the results are focused on their strengths, rather than on their weaknesses and deficiencies.

If the YTA assessment results were like school report cards and employee performance reviews that highlight areas “in need of improvement,” I suspect that the question “so what?” would never arise. The questions would be about what you could do to improve or where you could find classes for remediation. People would be jumping in, raring to get to work on improving themselves.

Perhaps this is because people don’t think there’s any work involved in making the most of their talents and abilities. After all, these are the things they’re already good at, right? So where’s the room to move?

But here’s an analogy – if you had a mining claim somewhere, with a few different veins of gold running through it, wouldn’t you want to know which vein lay closest to the surface? It’s not that digging up that gold wouldn’t still be work. It would just be the kind of work most likely to yield results.

Still, so many people love working on what they don’t do well that they’re baffled about how to take advantage of information about their natural skills and abilities. Why? Because:

1. We get so little feedback about or gifts, skills, and talents in life that we don’t understand what it takes to further develop them. (Interested in this? Take a look at a skill or talent you have, then look at a leader who exemplifies that skill or talent. What would it take to close the gap between your level of mastery and theirs?)

2. Our gifts and talents are so chronically underdeveloped that we are unaware of what they are and cannot recognize their value or practical expression. (Do you know how to lean on your natural skills and abilities during a crisis? In leading a team? In everyday problem-solving? If you’re like most people, the answer is ‘no’.)

3. There is an endless supply of what we don’t do naturally well, but only a finite list of our gifts and talents. Somehow, we believe that if we focus on the positive, we will run out of “areas to improve.”

 4. We see others doing things we struggle with and buy into the idea that we are somehow “less than” they are because we can’t do everything.

5. We grossly undervalue the worth of our own innate abilities, falsely believing that if it is easy for us then it is easy for everyone. (Not true!)

6. We have bought into the belief that we must be “well-rounded” rather than specialists, despite all the empirical evidence demonstrating that those who specialize are more successful and happy.

7. We are conditioned to focus on “bad news” (newspapers, television and radio news, etc.) rather than “good news.”

8. We suffer from “pleasure anxiety” and distrust both positive feedback and feeling good about ourselves.

9. We somehow feel “wrong” focusing on our own positive qualities. As my mother used to say derisively, “Boy, you sure are tooting your own horn!”

Do you see yourself in any of these statements? (I know I do.) If so, it’s time to break out of the pack and do something extraordinary: discover the depth, unique qualities, and nuanced expression of skills and talents you are naturally gifted with.

About the Author:

Gary Jordan, Ph.D., has over 27 years of experience in clinical psychology, behavioral assessment, individual development, and coaching. He earned his doctorate in Clinical Psychology from the California School of Professional Psychology – Berkeley.  He is co-creator of Perceptual Style Theory, a revolutionary psychological assessment system that teaches people how to unleash their deepest potentials for success. He’s a partner at Vega Behavioral Consulting, Ltd., a consulting firm that specializes in helping people discover their true skills and talents.  For free information on how to succeed as an entrepreneur or coach, create a thriving business and build your bottom line doing more of what you love, visit www.YourTalentAdvantage.com

 

What do you do when you’re confronted with something you’re not good at?

 

Some people get discouraged and quit. Others keep doggedly working to get better at it, and in the process become more “well-rounded” human beings.

 

Conventional wisdom says that the second response is the healthy one. But the empirical evidence suggests that it’s people who specialize in an area of aptitude who are successful and happy, not those who focus their energies on becoming “well rounded.”

 

As a psychologist, I was trained to assess and treat what was wrong in peoples’ lives, to help people accomplish this business of “self-improvement.” But something changed in me about thirty years ago. I grew very weary of working on what was wrong with people and became more interested in what was right with them (i.e., their strengths).

 

It was this change that ultimately led me to working with Lynda-Ross Vega to develop Your Talent Advantage (YTA), a sophisticated psychological assessment that accurately assesses a person’s strengths and forms the basis of a roadmap for developing them in their lives.  

 

Many times after I have given presentations about YTA, and even after I have just delivered a person’s assessment results, I have been met with, “Okay. That’s interesting, but so what?” As in, “Now that I know this about myself, of what practical use is it?” I am convinced that this response is because the results are focused on their strengths, rather than on their weaknesses and deficiencies.

 

If the YTA assessment results were like school report cards and employee performance reviews that highlight areas “in need of improvement,” I suspect that the question “so what?” would never arise. The questions would be about what you could do to improve or where you could find classes for remediation. People would be jumping in, raring to get to work on improving themselves.

 

Perhaps this is because people don’t think there’s any work involved in making the most of their talents and abilities. After all, these are the things they’re already good at, right? So where’s the room to move?

 

But here’s an analogy – if you had a mining claim somewhere, with a few different veins of gold running through it, wouldn’t you want to know which vein lay closest to the surface? It’s not that digging up that gold wouldn’t still be work. It would just be the kind of work most likely to yield results.

 

Still, so many people love working on what they don’t do well that they’re baffled about how to take advantage of information about their natural skills and abilities. Why? Because:

 

1. We get so little feedback about or gifts, skills, and talents in life that we don’t understand what it takes to further develop them. (Interested in this? Take a look at a skill or talent you have, then look at a leader who exemplifies that skill or talent. What would it take to close the gap between your level of mastery and theirs?)

 

2. Our gifts and talents are so chronically underdeveloped that we are unaware of what they are and cannot recognize their value or practical expression. (Do you know how to lean on your natural skills and abilities during a crisis? In leading a team? In everyday problem-solving? If you’re like most people, the answer is ‘no’.)

 

3. There is an endless supply of what we don’t do naturally well, but only a finite list of our gifts and talents. Somehow, we believe that if we focus on the positive, we will run out of “areas to improve.”

 

4. We see others doing things we struggle with and buy into the idea that we are somehow “less than” they are because we can’t do everything.

 

5. We grossly undervalue the worth of our own innate abilities, falsely believing that if it is easy for us then it is easy for everyone. (Not true!)

 

6. We have bought into the belief that we must be “well-rounded” rather than specialists, despite all the empirical evidence demonstrating that those who specialize are more successful and happy.

 

7. We are conditioned to focus on “bad news” (newspapers, television and radio news, etc.) rather than “good news.”

 

8. We suffer from “pleasure anxiety” and distrust both positive feedback and feeling good about ourselves.

 

9. We somehow feel “wrong” focusing on our own positive qualities. As my mother used to say derisively, “Boy, you sure are tooting your own horn!”

 

Do you see yourself in any of these statements? (I know I do.) If so, it’s time to break out of the pack and do something extraordinary: discover the depth, unique qualities, and nuanced expression of skills and talents you are naturally gifted with.  

 

Gary Jordan, Ph.D., has over 27 years of experience in clinical psychology, behavioral assessment, individual development, and coaching. He earned his doctorate in Clinical Psychology from the California School of Professional Psychology – Berkeley.  He is co-creator of Perceptual Style Theory, a revolutionary psychological assessment system that teaches people how to unleash their deepest potentials for success. He’s a partner at Vega Behavioral Consulting, Ltd., a consulting firm that specializes in helping people discover their true skills and talents.  For free information on how to succeed as an entrepreneur or coach, create a thriving business and build your bottom line doing more of what you love, visit www.YourTalentAdvantage.com

Categories
Finance & Capital

Why Women Don’t Get Loans

It is misleadingly believed, that requests of business loans for women are turned down.

‘The reason is that banks and other financial institutions do not take them seriously due to their Gender. As a result of which they lag behind in building businesses on their own.’

This assumption is obviously not true. Many loan requests by women business owners are rejected because of their lack of ability to plan. While acquiring a business loan, gender does not matter. What matters is the time you have spent in preparing the loan proposal and how thorough you have been in it.

According to the National Women’s Business Council (NWBC),
“There were 7.8 million businesses owned by women in America in 2007. Of these, about 11.7% employ full-time workers, generating average annual receipts of over $1 million. The total revenue generated by all the women-owned businesses across the country (not considering farm-based business) has increased to $1.2 trillion. Women-owned businesses make up about 52% of all the businesses in the social and healthcare assistance arena.”

So can Women Acquire Loans Easily?
The answer is ‘yes’. It is rather easier for women to acquire loan and finances for their small businesses as compared to their male counterparts. A problem usually occurs in the application process as lenders ask for documents required in applying which are often not prepared.

Mistakes Women Make
Women make extremely basic mistakes while choosing the right funding company and also while choosing the suitable loan program for their small business.

Choosing The Wrong Companies for Loan
Instead of researching and finding the most suitable loan providing institutions most women depend entirely on what their friends suggest. They are often misguided, due to which they lose most of their money in repaying large interests rates ending up in debt.

Vague Business Plan and Loan Proposal
While planning to enter the next phase of your business you cannot just move forward without a plan. If you have a plan in mind then you need to write it down so that it can be evaluated by professionals.

With that comes a loan proposal which reports about you and your business, your future business plan, your financial requirements, how much money you require, how and where will you use it. How you intend to pay back the loan, and what your plans are if you are unable to pay it back.

Lender’s Application
This is the application of trust between you and the money lending institution. Even if you have a bad credit history, specify only the truth in your lender’s application. Omitting details may be extremely unprofessional on your part.

Financial Statements
Be ready with your two years of tax records and two years of Business and personal bank statements when applying for a small business loan. Though you may not require them immediately but eventually, yes you will need them. If you don’t have an established business already, then your personal tax record and personal bank statement will help you in creating a trust with your lender as being a reliable and responsible individual.

What should be done?

Not every loan gets approved. But assuming that women loans are often rejected is a farce, we need to dig deeper into the reasons instead of finalizing a hypothesis. In case your loan application is rejected, then you need to find other sources of funding and prepare a better case for yourself.

The Federal government does not provide grants for women to start or expand a small business. But the story does not end here. There are plenty of places where women can acquire loans for their small business all they require is research. Merchant companies are one such source which can provide women with the funding they require within 72 hours time.

Business cash advance companies have customized plans especially for women entrepreneurs. Not only this, they also assist women business owners in entire process and guide them through.

Merchant companies help women entrepreneurs in owning and operating small business without the hassle of high-interest loans or other cash advance options. They provide financial securities at affordable rate. Such companies do not stop any payments on bad credit histories. Instead, they evaluate your position from time to time and make your repayments flexible.

A large percentage of jobs have been created by women small business owners whose business requirements are often not taken seriously. The government should pay special attention to women business owners as they are a valuable asset for American economy.

Categories
Operations

Making The World Your Office – Or Entrepreneurs In Board Shorts

Article Contributed by Stefan Russel

Making the world your office.

When the idea for Vilondo. com – a site for luxury villas in Bali – came up about a year ago the philosophy was, that it should be possible to work on Vilondo from everywhere in the world. Here I am one year later. The business is up and running and we have worked on Vilondo from as different places as San Francisco, New York, Copenhagen, among rice paddies in the Mekong delta in Vietnam, Hawaii and Bangkok. Guess where I am sitting now? In a beach café on the tiny island Gili in Indonesia looking at the brightest blue water you can imagine. Here are no cars, only bicycles and horses, but here’s Internet like almost everywhere in the world, apart from the most remote places.

I thought that other entrepreneurs might find inspiration in the way we are doing things, hence this article. At first I was considering writing a hard-core business style article, with some nice buzzwords. I had even made some up for the occasion, but Lifestyle management was already taken, location transition did not sound that cool and actually, what we are doing isn´t rocket science, so instead I will try to describe a regular day at our Bali “office” which is where we have our base right now – I am just in Gili for a few days.

A day at the Vilondo office

As the beams from the Balinese sun hits my face I open my eyes. I consider closing them again and get some more sleep, but decide on getting up and take a quick shower. I can’t remember the last time I used an alarm clock. From my bathroom window I see rice paddies as long as my eye can reach. The color of the rice paddies is intensively green in the early morning light. I love the sight of rice paddies in the morning.

Time to get dressed for work – I basically have to uniforms the light blue swim shorts or the bright blue swim shorts. I choose the light blue pair as the bright ones still feels a little wet from last night’s swim. I pick up my laptop and head for breakfast.

As soon as I open the door from my air-conditioned room I can feel it’s going to be a warm day. I cross the pool area and enter the kitchen.  Tivi – our super hero helper – greets me with a smile and a good morning. She has already prepared breakfast. It is Indonesian style today – chicken, rice and an egg. I pour myself some coffee, pick up my plate, cross the little bridge over the goldfish waters that separate the kitchen area from our outside gazebo.

I eat my breakfast while I check the news on my laptop. No one else is up yet, so the only sounds are the running waters from the pond and from afar the calls to prayer from the local minaret. The Muslims are a minority in Bali, but they certainly know how to make themself heard.

Mads, my partner shows up and we spends some minutes discussing some new ideas before we dig in to our separate work.  A few hours later the temperature is hitting the 30 degrees Celsius level and it is time for a cool down in the pool. A couple of the other guys living and working in our shared villa join us. The fact that everybody’s in their thirties or close to, doesn´t stop us from getting into water fight. Some of the other guys have developed splashing techniques close to perfection. I still have some way to go, so I get out of the pool with water in my eyes, ears and nose.

After lunch the heat forces me into my air-coned room where I spend the afternoon working, including a Skype meeting with a European business partner. As the sun is about to set temperature gets more tolerable and we decide to go for a run on the beach. As we run sweat dripping through the local villages we are met with smiles everywhere and looks that range from amusement to disbelief.

Back at the villa, a huge pile of chicken satay sticks and bowls of salad and rice are awaiting us. Soon after only the wooden sticks from the satay are left, leaving our plates assembling a messy game of pick-up sticks.

We spend a little time rounding of the days’ work as the moon and the stars enter the sky. The day ends with a movie in our outdoor cinema. There is nothing like Hollywood action in the tropic night with the local geckos contributing to the soundtrack. A little later I hit my perfectly made bed and goes to sleep.

Can anyone do it – it sounds expensive?

I guess if you are running an oyster bar or produce sparkling wines moving to an exotic location is probably not an option, but anyone who mainly do business on the Internet can do it. It does not have to be for life. It can be for a few inspirational weeks or months.

It is definitely not expensive. My living expenses are about half of what they would be if I had to live in a small apartment in any major Australian, European or American city and if you need to hire personnel, prices are unbelievable low. For the most basic jobs you can hire someone for around 100$/a month, which of course is nice when you are starting up a new business.

If you have question about the article or about Vilondo in general you are more than welcome to contact me.  You can find our contact information on our website Vilondo.com

About the Author

Stefan Russel is co-founder of Vilondo villa rental – an Internet based company that rent out luxury villas in Bali.