SoKy Local Business or "SoKybiz"

Monday April 14^th is kind of the last minute to be thinking of options for paying taxes. I just read an article that may offer some comfort, or at least some options for those who owe more than they can afford. http://finance.yahoo.com/taxes/article/104810/Bill-Busters   

Overwhelming tax debt got you worried? First file, then consider options

"The IRS isn't going to go away. If you owe them, they'll hound you until after you're dead," said Cindy Hockenberry, a tax information analyst with the National Association of Tax Professionals, in Appleton, Wis. (And she's not joking: If the executor of your estate doesn't pay your tax bill and distributes your assets to your beneficiaries, the IRS will go after the executor.)

If you don't file a return, you'll pay 5% a month, up to 25% of your total bill, until you do. But the failure-to-pay penalty is much less, just one-half of 1% per month, up to 25% of the total due.

I am fortunate to have a great tax guy at Professional Tax Service in Bowling Green. Visit their website (http://www.1040.com/ProTax) and ask for Mike Buser. Tell him David Francis sent you. Mike offers more than just comfort; he asks many questions and offers great advice not only for this tax year, but in the year to come. (No, this is not an advertisement for Professional Tax Service nor am I compensated in any way for mentioning it.)

Sure, I have accounting software and keep my records, receipts and notes. But having a counselor who’s focus and expertise is income tax provides more than spreadsheets and printable forms; it provides a warm fuzzy and knowledge that I have paid the proper taxes, but not too much.

Mike also offers strategic advice for the coming year. His advice for me was, “You may want to come in around September and we will look at the any possible tax advantages of incorporating your companies.”

But back to the point! Even if you feel you owe more tax than you can afford to pay, read the linked article and file accordingly! In this case, it is not a time you want to ask forgiveness instead of permission.

Labels: Accounting, bookkeeping, small business

This was posted by SoKy : 7:49 AM  0 comments links to this post

The value of of good record keeping in small business is sometimes hard to see until you actually need the information. I love good books that are complete, easy to understand and readily available. As a one horse operation however, it's easy to become lax and put things off in the name of productivity. It's a mistake.

Motivation for this blog post: This post is inspired by a loss of control for the past 6 months. On the heels of tax time and spending two days digging through stacks of receipts, statements and invoices, I am reminded how important good record keeping practices are. As an Internet consultant to small business, I tend to look for software solutions to aid in the organization and storage of my sales, contact, schedule and yes, financial records.

As my business grows, I am continually looking at better ways to keep up with the financial records of my companies. There are dozens of tools that can be used to making invoicing, bill paying and general bookkeeping easier, the most popular of these is QuickBooks.

There is much more to "record keeping" than just the financial books! From daily communications with clients, sales leads and customer resource management, there are many details that could and should be 'kept' organized and structured.

I've set up and/or used QuickBooks for several companies. From service oriented travel and web companies to retail and eCommerce, I've made QuickBooks work. The key phrase however is "made." The fact is, because QuickBooks is so popular, it seems to come off as a rubber stamp approach to financial management. Then, one must buy add-on products to handle other areas of business.

My "struggle" with QuickBooks has been the lack of integration with other records such as email and customer data. So I began to look for options. As a member of the Microsoft Partner Program, I am offered information about a wide variety of products from programming and development tools to simple accounting and contact management. Needless to say, this has me leaning toward a Microsoft solution, though I'm not afraid to look elsewhere.

At first glance it makes sense to use Microsoft product integration. All of my companies or those I have worked with have used Microsoft Office for the most part. They have used Microsoft Word for writing letters, MS Excel for spreadsheets and MS Outlook for email, calendar and contact management. Wouldn't it be great if there was a Microsoft product that would do invoicing, bank account management and accounting? Well, there is.

I am migrating from QuickBooks to Microsoft Office Accounting Professional 2007 which will be closely integrated with Microsoft Office Outlook 2007 with Business Contact Manager. I could go on and on about the advantages and features of this combination but will allow you to decide for yourself.

My main objective is to simplify the process! I intend to integrate my banking records, online bill pay and credit card transactions into the new accounting process and procedure. All invoicing, expense records, contacts with clients will all be easily accessible by using tools that "talk to each other."

I have personally witnessed some of the most horrid setups of QuickBooks! Alternatively, I've seen some great setups that were under utilized. Frankly, I think the small business owner should invest a good amount of time learning and understanding sound accounting principals as well as effective contact management. It's from that core knowledge that a sound process and procedure can be created, established, taught to employees and then managed.

For many entrepreneurs, this record keeping and bookkeeping thing is too much trouble. For many, it's not the fun part of building a business that's for sure. Many people hire consultants, accountants and/or programmers to take care of this kind of thing. While that's a good solution in most cases, learning the why's and wherefore's of the process can help your business be more profitable.

Solutions
There is a company in town that does assist with setting up your computers, network and software. They have a thorough knowledge of Microsoft Office products as well as the many options available to small business. They also write custom software solutions for those businesses who need a specific solution. David W. Doran is a friend of mine and willing to help small business get set up, secure and productive. ISTT is a "Microsoft GOLD certified Partner" which is hard to come by in our area. Give David a call, let him know that I sent you! ISTT, Inc. 846 Broadway Ave Bowling Green, KY 42101 Phone:270-781-5096 FAX:270-781-5641 http://www.isttechnology.com/

I am still on the look out for a technically savvy small business accountant with skills and patience to help small businesses set up their own accounting policy. Frankly, I have not looked that hard but will keep my eyes open.

Banking
Online banking is a key part of my personal formula and will be it's own blog post in the future. I selected USBank a little more than a year ago and have decided to move my accounts to a local area bank. There are many considerations when selecting a bank, one of the important ones for me is online banking as well as electronic statements that can be easily imported into the software I use.

Since I am in the process of moving or establishing accounts for three different companies, I don't have enough information or experience to make a recommendation. I am leaving USBank primarily due to a lack of personal attention, unresponsiveness to my needs and the many extra unexplained charges I find on my statement. Also, I recently requested an Excel spreadsheet of my 2006 banking records and was told it was not available but I could get printed copies for $6.00 per page.

I can highly recommend American Express!!! I have been using them for years and have had as many as two business accounts with them at the same time. Their online banking is the best I've ever seen! And yes, I can get an Excel Spreadsheet of my spending on the card any time I want. While I do get the occasional customer service representative in India, they are very responsive to my needs.

Taxes
I know it's a little late to make a recommendation for a tax man, but really it's the tax season that inspired this post. I have been a client of Mike Buser for years. He is absolutely wonderful and very affordable. The specialize in tax preparation but also "dabble" in bookkeeping and payroll. Give Mike a call any time and he will patiently listen and offer advice as to what your small business requirements are. Thinking about next tax season now will not only help you be prepared, but could save you a million headaches later. If you call Mike, let him know you heard about him from me. Professional Tax Service, Inc. 600 31-W ByPass BOWLING GREEN, KY 42101 Phone - 270-781-4141 Fax - 270-842-4497 http://www.1040.com/protax/

It's all in the PLAN!
I've written many times about the importance of a good business plan. A very significant part of this plan is the accounting policy, process and procedure. It falls in the operations section of the business plan. Establishing a method to the madness of accounting is the first step in staying organized. While organization may not be important to some people, knowing where your money is coming from, where it is going and how it is being used can reveal a great number of opportunities to make changes that will make your business stronger.

Labels: Accounting, bookkeeping, Bowling Green, ISTT, Microsoft, Outlook, QuickBooks, small business, software

This was posted by SoKy : 2:53 PM  0 comments links to this post