Closing out 2008

It’s the last day of the year and my head is truly hurting recounting all the accounting, client tracking, project tracking and number crunching for 2008; combining that with all the goals and planning for 2009.

It all makes me remember that a business is much more than putting a sign on a door and charging for services; it’s about organization, planning, and growing in not only your customer base, but your offering and partnerships.

2009 is going to be a great year.

Happy Holidays!!

Remember to take time out to share with family and friends the Holiday season. Happy holidays and I look forward to working with all business owners looking to grow their businesses in the coming year.

Administrative Partners win Grant

Last night, my company was awarded a Grant through the Women's Business Owners of Prince George's County. I am so excited about this opportunity. The organization doesn't just give money, its a 6 month business development bootcamp. The board of directors is made up of a diverse set of professionals, each serving as my mentor in their area of expertise. At the end of 6 months I will be awarded a monetary award -- if I make it through this bootcamp .

They also sponsor training in any area that I would like - be it a workshop seminar or class.

I'm so excited and am really confident that with their help my business is going to soar to the next level.

Just thought I'd share :-)

Seven Year-End Tax Tips

The autumn leaves are falling, a chill is in the air, holidays are looming, and, for small business owners, it's a good time to think about ... taxes. While no one likes to ponder the intricacies and implications of the Internal Revenue Code, taking the time to do so toward the end of the year can save your business a considerable amount of money come tax time.

So what can you do now?

1. Lower Revenue. Since your tax bill will be calculated on the basis of how much income your company has made during the year, a good way of keeping that bill down is to defer the receipt of as many payments from customers as possible into January. If your business operates on the cash basis of accounting, this can be easily done by simply delaying the mailing of bills for end-of-year purchases until very late in December, or permitting other bills that are due to be paid in January. Not only does this allow you to lower the current year tax bill, but you get to keep the tax due on those funds in the bank, accruing interest, for a whole year. Additionally, your customers will appreciate the added time to pay their bills, especially around the holiday season.

Note, however, that this strategy only benefits you if you won't be entering a higher tax bracket in the coming year. If you estimate that your business will be operating in a higher tax bracket next year, deferring payments until next year may cost you more later. Also, if your business shows a loss for this year, it makes less sense to defer the payments, since doing so only increases the size of your loss for this year and will have no tax impact.

Also note that simply not depositing a check received before the end of the year does not mean that you can defer that revenue to next year. The IRS requires you to include any checks received before December 31 as part of this year's revenue. Failing to do so could result in penalties if you are audited.

2. Make that major purchase. If you are considering a major purchase of business equipment, it's a good idea to do it now, so that the cost can be deducted from this year's taxes. As part of the Economic Stimulus Act of 2008, signed into law earlier this year, the limit on Section 179 deductions for business equipment purchases was raised from $125,000 to $250,000, and the total amount of equipment purchases that are deductible was raised from $500,000 to $800,000. Both used and new equipment qualify for the deduction and you are able to finance the purchase. But any new equipment acquired must be put into use by your business by December 31 to qualify for the deduction.

3. Increase Expenses. You can reduce your tax bill by increasing the amount and number of deductions you take for business expenses like office supplies and office furniture. You can increase the benefit by charging such expenses on your business credit card, which means that-if you make the purchase in December-you get to claim the deduction for this year's taxes, but won't have to pay the credit card bill until next year.

4. Pay Recurring Bills Now. The same applies to bills for business services, like rent, phone service, and equipment leases, which should be paid before the end of the year, even if not due until after December 31. Consider pre-paying for bills that you know you will need to pay anyway like rent. Such payments can be deducted against this year's taxes. Make sure that pre-payments made now won't complicate your cash flow in January.

5. Contribute to a Retirement Plan: If you don't have one, you really should, and this is the perfect time to set it up. Payments made to a retirement plan-401(k), IRA, KEOGH, or SEP plan-are deductible against this year's income. Most retirement plans have a contribution limit.

6. Consult a Tax Advisor. Tax law is complicated. Very few small business owners, outside of CPAs themselves, have the time or inclination to acquaint themselves with the IRS code and the yearly changes made by Congress. Instead of trying to work it all out yourself, you are better off consulting someone who has made business taxes his or her profession. A tax advisor can make certain that your business is not only in compliance with all the relevant tax codes, but is taking advantage of every allowable deduction.

7. Consider the home office deduction. Do you conduct business out of any part of your home? Many small business owners have at least one room devoted to some aspect of their business, whether it is keeping shipping materials in the garage, or a bedroom that has been converted into an office or filing storage space. With so many small businesses operating partially or completely out of people's homes, the IRS allows small business owners to deduct a portion of rent, mortgage payments, utilities, and maintenance for qualifying home offices. The IRS has fairly stringent tests for such deductions, however, and it is advisable to consult a CPA about your particular situation to make certain it qualifies.

 

By Christopher Freeburn – Small Business Online Community at Bank of America

 

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Showing Your Business Skills on the Job

Intrapreneurship is the opportunity to exercise your entrepreneurial skills within a company or organization. It is a great way to gain corporate independence as well as increase your profile within the company and the industry. Robert Wallace, author and CEO of Bithgroup Technologies Inc. in Baltimore, shares what it takes to become a successful intrapreneur.

Understand that an intrapreneurial venture requires many of the same skills as starting your own business. Is there a need for this separate business unit? Will you be able to manage the budget and resources required for success? How will you increase value over time?

Develop a business plan. Plan for development, sustainability, and growth with provisions made for change and innovations. Wallace also suggests that as you develop your plan, consider your professional goals and how the structure of your business plan will address them.

Know the rules of engagement in your company. "Every organization has a culture, and the culture defines the rules about how success is attained," Wallace explains. How receptive is your organization to new ideas or business concepts? What have been the channels of completion for other projects? "A lot of minority professionals don't understand that it's not just about the credentials and how hard you work."

Build strategic alliances that advance you. To move any idea forward, an employee needs the advice and support of mentors and advocates, senior level executives who will advise you on how to manage the political climate.


Taken from Black Enterprise Magazine (Kingsley Kanu, Jr.)

Outsourcing for Small Business

The phone’s ringing off the hook, employees are working overtime to handle the overload, and your website is buzzing with activity. These are all “good” problems we wish for, but are you ready if they become a reality? Today’s business happens at warp speed, and efficiency is a key hallmark of success. One way to gain efficiency is to focus your energy on the things that are of core value to your business. Keep those activities in-house, and put your non-core functions on the hot seat – even small business outsourcing is a reality in today’s business environment.

To make outsourcing work for your business, try the following:

Analyze your expertise

Take a look at the value you offer your customers and where you focus your efforts. Are you spending too much time on areas that are outside of your expertise? Many times, it is more cost-effective to have someone outside of the company take care of these non-core activities. Research various service providers and ask for referrals so you can start outsourcing functions such as logistics, accounting, IT services, payroll, public relations, and more.

"A small business owner should evaluate outsourcing just as any other business decision,” states Walter Turek, senior vice president, sales and marketing for Paychex, a national provider of payroll, human resource and benefits outsourcing solutions. “Criteria should include:expertise in performing the function, confidence in the service provider, return on time invested, risk versus reward, and peace of mind consideration."

Outsourced but not out of mind

Once you find an outsourcing vendor, be sure to keep your eye on the ball! Since you can’t just walk down the hall to oversee the quality and timeliness of outsourced work, continue to tightly manage whatever functions you outsource. Arrange for regular reporting to ensure accountability and effectiveness.

Move “fixed costs” to “variable costs”

Some functions in your business require only part-time work. An example might be bookkeeping. If your needs add up to only four days a week in bookkeeping work, then consider outsourcing. That will allow you to move the burden of “fixed” costs (in this case, a full-time salary) to the “variable” side (an outsourced vendor). In essence, you pay for the outsourced functions only when you need them.

Jump on opportunities from downsizers

Be aware that the rigors of this economy are forcing big business to shed non-core functions. After all, corporations must find ways to maximize profitability, which they do in part by reducing their expenses. Just as in small businesses, outsourcing allows big companies to move fixed costs to the variable column. Like you, they pay for the outsourced functions only when they need them. From a business development perspective, this may represent a trove of opportunity for you. You can develop an entire business model centered on providing services that used to be in-house at large companies.

Our Bottom Line

The primary message here is that outsourcing is here to stay and it should be something you entertain for your business. Concentrate on the key aspects of your small business, where customers find value, and outsource other business functions to outside experts. If you monitor vendors carefully and focus on efficiency, you’ll be positioned for rapid growth and success.

http://www.startupnation.com/articles/1276/1/small-business-outsourcing.asp