In These Times Be Thankful In All Things

On the eve of Thanksgiving Day let us be thankful in all things. As a business owner over the years I have encountered many challenges. I have seen business colleagues have to delay their dreams of expanding their businesses. Recently I have seen businesses close due to reduced revenue.

As we look ahead let us begin by being thankful for what we have. As a business owner I can be thankful for the next opportunity to serve a new client. Every client is important and should be viewed as such. The clients we choose to serve should be those we truly feel we can help take their business or organization to the next level.

We can also be thankful for the challenges we face in helping clients. As an accountant my biggest challenge is in getting clients to realize how important it is to review financial statements regularly. Especially in the early days of my business clients were only happy if they had money in the bank. I use the review of financial statements as a time to educate my client.

We can also be thankful for the situations that appear to be setbacks. Maybe the business deal you thought would go through is delayed. That could be a blessing in disguise. We all sometimes encounter what we think is a delay in our plans. Did you ever think that now might not be the time for that deal?

Take a look around and see what you do have. A business you can nurture, even in these seemingly turbulent economic times. Let me remind you all things will work out to your good if you are patient and look up.

Take a look around and be thankful. Give thanks in all things!

New Insights Into Life & Business

The time has come for us to take it to the next level. This past weekend I had the pleasure of speaking at the Essence of Motown Literary Jam. This conference was for readers, writers, authors & poets. While I don't consider myself a writer I was delighted to take part. This conference helped me to realize several things. Number one: We can all learn from each other. Number two: We all have something of value inside. For some it's the value of sharing a struggle we have faced and overcome. For others its sharing how we have loved and lost and loved again. I am inspired to share the struggles I have faced in life with others so that they might have hope.

From a business standpoint the conference allowed me to share my accounting and tax knowledge. It was encouraging to share my business experience and knowledge. While many of the tax regulations are straight forward many are not. While being creative, business owners should be careful not to go beyond the basic IRS guideline.

For example, the IRS has guidelines for separating personal and business expenses. The IRS has determined the following :

Personal versus Business Expenses
Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

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An Analysis Of The New Tax Plan

A new day has dawned. One many thought they would never see in their lifetime. The day an African American would be elected President of the United States. There is still work to do. Our President Elect has unveiled a tax plan that will affect us all.

The basics of the plan is as follows:

• Cut taxes for 95% of workers and their families with a tax cut of $500 for single workers or $1,000 for working married couples.
• Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.
• Eliminate capital gain taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.
• Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms, and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant.

These items as outlined in the President's Tax Plan are designed to bring fairness to our current tax regulations. In times past, the tax regulations seemed to benefit the wealthiest of individuals at a higher rate than the low income individual.

For many low-income Americans, the tax plan will completely eliminate their federal income taxes. This is an idea that many may find hard to fathom. In my opinion, we need to have a change in the income tax system. For many people the regulations are difficult to understand and even harder to determine how to apply them.

Another point of the tax plan is:

President Barack Obama will eliminate all income taxation of seniors making less than $50,000 per year. This will eliminate taxes for 7 million seniors-- saving them an average of $1,400 a year-- and will also mean that 27 million seniors will not need to file an income tax return at all.

This part of the plan, when it comes to fruition, will be a welcome change for many seniors. I believe seniors have been most negatively affected by many of the current tax regulations. I believe the current proposed plan will offer seniors relief that is well overdue.

A new tax plan for a new day!

How Do You Prepare Payroll Using QuickBooks?

How Do You Prepare Payroll? One of the features of QuickBooks software is the payroll feature. You can prepare your payroll using the software. Many businesses are opting to have payroll in-house. The payroll process starts with the creation of your employee list. Who are your employees? Do you have all the personal information you need? You should have the following information for your employees: SSN, Date of Birth, number of dependants, marital status, and address information.

How do you set up your payroll items? A payroll item includes the following: salary wages, hourly wages, commissions, bonuses, State withholding tax, Local withholding tax and any other tax. You can set up payroll items at any time. The most convenient time however is when your company information is set up. This process may take time; so perhaps listing all your payroll items first may ensure you have them all.

What’s Next? Next, create the accounts necessary to pay the taxes you withhold from your employees. You will need to set up accounts for federal, state and local governmental agencies. Your accountant can assist you with setting up those accounts. Once the accounts are established, make a schedule for paying them. Most payment schedules depend on your total payroll and your payroll frequency. Many companies run into problems with payroll when the withheld amounts are not paid in a timely manner. Many times the penalties for paying late may be more than the payment itself.

What are your options? QuickBooks software provides for various payroll options. Let your QuickBooks Solutions provider know what you need. If you need basic payroll help, online payroll, or assisted payroll. QuickBooks software provides the necessary options for you. Once you are setup properly the rest of the work is less time consuming.

QuickBooks Software Can Help Your Business

How much money are you spending? Do you know how much money your business is spending? Are you staying within your projected budget? These are just a few questions you can answer if you are using QuickBooks software. You can produce your monthly financial statements with the help of this software. Many reports can be produced from the software. Do you have a current customer contact list, and can you produce it with a few clicks of your mouse. QuickBooks can help you list your clients and show how much they may owe you.

Do you know your bottom line? It is important to know what your business figures mean. Your understanding of your bottom line can help you make important decisions for your business. If you don’t keep accurate financial statements you are making a decision that could mean the difference between success and failure. When was the last time you reviewed you profit and loss statement to determine your net income? The use of QuickBooks could help you take your business to the next level by helping you make good management decisions.

How much should you pay this quarter for payroll taxes? QuickBooks can be used to prepare your payroll. With the help of the software you can determine how much you owe for payroll taxes. You can list your employee information in the payroll module. With the use of the software you can produce your employees w-2 at the end of the year. You can also accumulate the figures to produce your company’s tax return as well. QuickBooks software can help your business!

Tax Deadline Has Come and Gone

The Tax Deadline Has Past!It is always a much anticipated date. We all know when the tax deadline is. However, many people wait until the last minute to provide the necessary information to their tax preparer. I wonder how many people even are concerned about the pressure the last minute tax return causes the preparer. Your preparer wants to be diligent in preparing all returns. It is always the last minute person who wants their return done at the time the information is left.

The ideal situation is one that gives the preparer plenty of time to review the final product. It is important to be able to review the return to insure all information is accounted for. Help your preparer help you. Give your accountant or tax preparer plenty of time to prepare your return.Have all your tax related information together that will help speed up the processing. Always provide your preparer with the previous years return. Those are just a few ways you can help.


Many happy Returns!!!!!!!

Making New Contacts

Making new contacts can be exciting. We all can use a helping hand. I have found that when meeting new business owners it is always a good idea to learn as much about that person as possible. Staying alert is the key. If you stay alert when meeting people you can form a good connection.

It is not necessary to try to out talk the other person. Start by being a good listener We all need to be heard and everyone has good ideas they can share. If you talk to much about yourself others will not continue to really hear you. You will turn people off right in the middle of your conversation.

Share information that others can use. Why not let your conversation benefit others. It is good to read the local business section of the newspaper to stay up on whats going on around you. When you find information that others might be able to use send them a copy of the article or email them the link to the information.

Ask yourself "What information can I share with someone today"?

Starting A Business Can Be Overwhelming

Starting a business can be overwhelming. Just ask the many business owners who do just that everyday. Many people go into business with many preconceived ideas about what it takes to start a business. I have found that developing a strong support system is key to staying the course of making your dream a reality. Your support system might include family, friends, and other business owners who know what it takes to make a business successful.

Once you have your support system don’t be afraid to ask for help. Maybe you just need an encouraging word or someone to bounce your ideas off. Your business will never become a reality if you never step out. Your ideas will just be in your head. Next develop a business plan once you determine what it is you want to do. Your business plan will give you a way of seeing your ideas on paper. You can always make changes as you go along.

Once you have your business plan, determine how much money it will take to actually put your plan into action. Financial statement projection information will help you determine the bottom line. How much money can you make providing the product or service that you have to offer? How much money does it take to provide the product? How much should you charge for your product or service? As you can see from a financial standpoint there are several questions you can ask. How do you come up with the answer to these questions? The first place you may start with answering these questions is by asking an accountant. An accountant can help you make sense of the numbers. The calculation of the numbers is what your accountant is skilled at.

Don’t be overwhelmed by the numbers. Choose a good accountant and let them help you make your dream a reality.

About the Author
Edna Washington, is a Detroit area-based consultant and founder of Washington Consultants. She helps small businesses establish and maintain their accounting system. She comes to Washington Consultants with over 15 years accounting and computer experience. Washington Consultants provides accounting and computer services to small businesses. Computer skills training for youth and adults is also a service offered by Washington Consultants.