tag:blogger.com,1999:blog-44350866972966564672024-02-20T12:41:25.857-08:00Chuck's Two CentsTax and Business Tips for Individuals and Small BusinessesChuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.comBlogger42125tag:blogger.com,1999:blog-4435086697296656467.post-65415409801825358342012-03-31T18:51:00.001-07:002012-03-31T18:57:05.300-07:00Tax help for members of the armed forcesThe IRS provides some resources for members of the armed forces. If you are in the military, you may find the the following links helpful.<br />
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This is an IRS website page dedicated to providing information to members of the armed forces. <a href="http://www.irs.gov/newsroom/article/0,,id=97273,00.html" target="_blank">http://www.irs.gov/newsroom/article/0,,id=97273,00.html</a><br />
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Also here are links to Publication 3, Armed Forces' Tax Guide. There is an online version and a PDF.<br />
Online: <a href="http://www.irs.gov/publications/p3/index.html" target="_blank">http://www.irs.gov/publications/p3/index.html</a><br />
PDF: <a href="http://www.irs.gov/pub/irs-pdf/p3.pdf" target="_blank">http://www.irs.gov/pub/irs-pdf/p3.pdf</a><br />
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If you would like a paper copy of the document, contact the IRS by telephone. 1-800-829-3676Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-6514721803966624822012-01-28T19:45:00.001-08:002012-01-28T19:48:07.792-08:00Organize to save money on accounting fees!Many people are surprised at how much it costs for their CPA to prepare their returns. Hiring an expert to do your taxes is a good idea, and most of the fees are money well spent. However, some habits may be costing you a lot of money, and they could lead to errors. What are these habits? <br />
<ul><li>Disorganization</li>
<li>Sloppy bookkeeping</li>
<li>Unresponsiveness</li>
</ul><div>This is how those habits cost you and what you can do about them.<br />
</div><div><strong></strong> </div><div><strong>Disorganization </strong></div><div>It is amazing how many people simply gather up any documents that they think might somehow be related to their income tax, stuff them in folders or large envelopes, and send them to their CPA. The CPA will review and make copies of everything. Many of the documents will turn out to be unnecessary. Even so, once their CPAs start going through the files, they find that many important items are not included. The CPA will then have to contact the client and ask for the missing documents. This adds to the expense of preparing the return because the accountant spends additional time and expense on the unnecessary items and them spends extra time tracking down the missing items. </div><div></div><div>A few common examples are listed below.</div><div></div><div><br />
<strong>Housing related items</strong></div><div>Taxpayers that own homes may be eligible to deduct mortgage interest, PMI, and property taxes. The only documents that the accountant needs are the mortgage interest statements from the holder of the mortgage and property tax receipts. It is generally not necessary to provide monthly statements for the mortgage or tax notices. Taxpayers should be sure to let their accountants know what they paid, and in instances where they may not have paid an item (such as delaying a property tax payment) what they have not paid.</div><div></div><div><br />
Taxpayers that sold or purchased a home should generally provide the settlement statements to their accountants. This will help the accountant evaluate whether there are deductible expenses related to the transaction, and it will help confirm whether the taxpayer qualifies for gain exclusions. If the home was converted to or from rental use or vacation property, then it is especially important to provide this information.</div><div></div><div>Clients with home offices should keep additional records.</div><div></div><div><br />
<strong>Bank and brokerage accounts</strong></div><div>Clients with bank and brokerage accounts will often provide monthly, quarterly, and annual reports. Clients may, or may not, provide the relevant 1099s. The CPA will review all of the documents. If the 1099's are not provided, the CPA will contact the client and ask for them. It is especially important for clients that receive stock based compensation and clients that do a lot of trading to review their documents and make sure that the CPA has what he or she needs to complete the return, and that unnecessary information is not included in the file.</div><div></div><div><br />
<strong>Business expenses</strong></div><div>Unless your accountant set up and maintains your bookkeeping, he or she has no way of knowing the details of your expenses. Clients frequently bring folders and envelopes full of receipts to their CPA. All that is really necessary is a set of financial statements and a summary of expenses. The reason that this increases the cost of the return is that the accountant will have to organize the receipts, and this takes time. It is much less expensive to organize expenses than it is to pay the accountant to organize them for you.</div><div></div><div><br />
Clients who use automobiles for business should keep records and provide them to their accountant.</div><div></div><div><br />
<strong>Childcare expenses</strong></div><div>Clients with children who pay for childcare should provide information about the care provider including the address, tax ID number and the amount paid. If the client used a flexible spending account, or if the employer provided a childcare benefit, then the client should provide that information as well.</div><div></div><div><br />
<strong>Sloppy (or no) bookkeeping </strong></div><div>Many business owners try to save money by limiting their record keeping. When the do decide to keep detailed records, they often consist of spreadsheets. Once the records get to complex for spreadsheets then business owners will buy a bookkeeping program. In the long run, none of this saves money. If the books are not well organized then the accountant may have to virtually redo them in order to prepare the tax return. This adds to the cost of the return, and it is more expensive than it would have been to have had the books properly prepared before bringing them to the CPA for tax filing.</div><div></div><div><br />
Another thing that adds to the cost of preparing tax returns is when accounts are set up incorrectly. When accounts are set up correctly, then they can be configured in a way that makes it simple to produce reports in standard formats. These formats include tax reporting formats as well as formats designed to help manage a business. </div><div></div><div><br />
A final problem for many taxpayers is failing to separate personal and business expenses. Ideally, business owners will have different bank accounts for business and personal use. If that is not possible, then at the very least, they should keep personal items out of their business records by flagging them appropriately so that they can be identified and excluded from reports.</div><div></div><div><br />
<strong>Unresponsiveness</strong></div><div>Many clients do not respond when their accountant tries to contact them. The reason the accountant is calling is either to find missing information or to clarify something that is not clear. When clients do not respond, their returns remain unfinished. Tax preparers have to set the return aside and wait for the additional information. When the client does respond, sometimes weeks later after several emails or telephone calls, the preparer will reopen the file and begin working on the return. Unfortunately, it will probably not be fresh in the preparer's mind, and it will take longer to complete than if the missing information had been available sooner. Unresponsiveness increases the cost of preparing your return because it is difficult to work with missing information and it takes longer to prepare the return. In addition, every one of those phone calls and emails take time.</div><div></div><div><br />
<strong>Changing your habits</strong></div><div>Now that you know about these three money saving bad habits, you can start changing your behavior.</div><div></div><div><br />
<strong>Get organized!</strong></div><div>Talk to your CPA or the professional that prepares your filing. He or she can tell you exactly what you need to do in order to simplify your tax filing and to make it less expensive to prepare your return. Take advantage of the checklists and organizers your accountant provides. Spend a little time reviewing your documents before you take them to your accountant. </div><div></div><div><br />
Keep records throughout the year, and organize them so that they will be ready for your accountant. If you drive an automobile for work, get one of those auto record books and keep it. Keep your business and personal records separate.</div><div></div><div><br />
<strong>Get help with your records.</strong></div><div>It is worth your time to talk to your CPA or to a bookkeeper to learn how to set up your records. If you have a small business, seriously consider purchasing bookkeeping software such as QuickBooks or Peachtree. If you do, it is worth your while to ask your accountant or bookkeeper to help you set up your books. If you simply don't want to organize your own records, or if they are too complex, then hire a bookkeeper. The cost of paying a bookkeeper to do your books throughout the year will be less than the cost of asking your accountant to do it a month before your taxes are due.</div><div></div><div><br />
<strong>Return your calls! Respond to email!</strong></div><div>When the CPA calls or emails, assume it is important and respond! If you do not return your calls or answer your email, then one contact becomes two or three or more. Your CPA will be able to complete your return faster and for less cost if you respond when he or she tries to contact you.</div>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-72644396204486602422012-01-28T19:40:00.000-08:002012-01-28T19:40:06.715-08:00Green Building MythsWe’ve all heard the arguments over sustainable building and renewable energy. Let’s take a look at three of them. <br />
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<strong>Sustainable building is too expensive.</strong><br />
There is nothing inherently expensive about sustainable building. At its simplest, sustainable building uses common sense design principles such as considering the sun and prevailing winds when deciding where to build or using design principles that provide shading or natural ventilation. <br />
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<strong>Green houses look funny.</strong><br />
Some of them do, but most green houses look like every other house on the block. If you want to build a dome or an underground house, go right ahead. However, many of green building concepts being “discovered” today have actually been around for a long time. Deep wrap around porches, dog trot style homes, and two story houses with windows at the top of the stairway are timeless designs in the south that embody “modern principles” such as shading, natural ventilation, and “chimney effects.” Northern homes have used enclosed entries for years. The “airlock” concept is nothing new. The only difference between many green homes and other homes is size of the utility bill!<br />
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<strong>Solar power, wind power, and rainwater collection is too expensive.</strong><br />
Yes. Those things do cost money. However, green building is not about finding ways for people to become miniature utility companies. In fact, before you even consider producing electricity or harvesting rainwater, you should figure out how to avoid wasting the electricity and water you already use. With that said, alternative power sources are becoming less expensive, and electricity from coal, oil, natural gas, and nuclear sources is becoming more expensive. Rain has been a water source for hundreds of years, and in some places as aquifers are pumped down, rain is more reliable than a well.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-22402420873943815052012-01-28T19:19:00.000-08:002012-02-01T08:37:20.979-08:00Lessons from the Gym – Making Resolutions<em>I go to the gym fairly regularly. I belong to a popular chain that has several facilities here in the Austin area. Some of the locations are new. Some have been around with various names and owners for decades. Gyms are great places to think about how to manage a business. There are a lot of business models in the fitness industry, and in the gyms I frequent, there are many types of customers. This is a series of short articles reviewing business concepts and practices. I might have thought about them while I was on the treadmill or doing push-ups, but I expect you will discover, as I did, that they apply in the boardroom and at the cash register.</em><br />
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This is the end of January. It could be any year, but 2012 is unusual in some respects. The economic recession continues to linger; international economies are paying the price for years of profligate spending by governments and individuals; millions of people are unable to find work. People dependent on their savings are earning a pittance in interest because the central banks are holding interest rates down. To make matters worse, the Mayan calendar ends in 2012, and opinion is divided on whether this means life on earth will end or life will go on.<br />
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<div></div>Did you make any New Year’s Resolutions? Judging by the strangers in the gym, a lot of people resolved to get in shape this year. Gym regulars refer to the newbies as “resolutioners.” The gyms start getting crowded during the first three weeks of the year, and they will stay crowded until the end of February. I work out in the morning before work, so they phenomenon is not as pronounced, but during the lunch hour and after working hours, the gyms can be packed. A friend recently commented that the gym is like an ant farm after work. By March, however, there is space in the parking lot, exercise classes are back to their normal sizes, and there is no competition for equipment.<br />
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<div></div>According to <a href="http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=164" target="_blank">Market Research World</a> only 27 percent of people with gym membership in the UK go to the gym regularly. I recall reading a much smaller number for the US in the annual report of a publicly traded fitness company several years ago. (Interestingly, there is a <a href="http://www.dietsinreview.com/diet_column/01/gym-pact-charges-members-extra-for-not-working-out/" target="_blank">new membership model that charges people more when they do not go to the gym</a>.)<br />
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<div></div><strong>How does this apply to your business?</strong><br />
You may not realize it, but you make similar resolutions in your business routinely. This will be the year that you will increase sales, or this will be the year you plan to reduce expenses. How can you avoid the fate of the resolutioners that start strong in January, and abandon their fitness goals by March? The first step is to take your goal setting seriously. Many people make resolutions because it is the thing to do in December. Unfortunately, failure also seems to be the thing to do. Why? Simply naming a desire is not sufficient. Achieving a goal means naming the goal, and the date you want accomplish the goal. The resolutioners that joined the gym without goals wasted their money.<br />
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<div></div>Fortunately, some people are going to succeed, and it is not difficult to figure out who they might be. They are the ones with specific goals. One good example is a friend of mine, who is starting a program with Weight Watchers. He has a goal and a plan to accomplish the goal. His goal is to lose a specific amount of weight by a certain date. His plan is to be more diligent in his exercise and to follow the Weight Watchers program. Sadly, many of the new people in the gym have no goals. Instead they have vague desires to get in better shape or to look better.<br />
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Consider the following statements.<br />
<ul><li>I will get in better shape.</li>
<li>I will lose weight.</li>
<li>I will start running.</li>
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These statements do not define goals. Compare them to these statements.<br />
<ul><li>I will lose 10 pounds by May.</li>
<li>I will be able to run two miles by April.</li>
</ul><div>The first set of statements is really nothing more than a list of desires. The last two statements express the same desires, and add a specific measurable objective and a deadline. Notice that the specific measurable objectives also lend themselves to being broken down into interim goals. Losing 10 pounds by May means losing two and a half pounds a month. Running two miles by April may mean running a mile by the end of February. Beginning with well-defined goals helps you develop a plan to accomplish your goals.</div><div> </div><div> </div><div>What about your goals? Did you begin the year resolving to increase revenue and decrease expenses? If you hope to do that, then restate your goals more specifically so that you are more likely to achieve your desire. How much do you want to increase revenue and by when do you want to increase it? How much do you want to decrease expenses? How will you begin? If you want to increase revenue will you do it by increasing volume or price? Will you expand share in existing markets? Will you explore new markets? How will you reduce expenses? Is your goal to reduce overhead? Do you want to reduce your cost of goods or the cost of selling? Be specific when you set your goal. If your goals are specific, measurable, and time bound you are more likely to achieve them.</div><br />
Good luck with your resolutions, and happy New Year!<br />
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<div></div>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-443871853501447862011-11-16T04:00:00.000-08:002011-11-16T04:00:54.002-08:00Do you need sales training?I’m not sure what I expected when I left the relative security of a salaried position for a sales job that paid a commission. I had an idea that the life was not really the one Arthur Miller depicted in <em>Death of a Salesman</em>, but I did not know if it would be better, or worse. I was going to sell financial services. I read a few books about sales. Harvey Mackay’s <em>Swim With the Sharks Without Being Eaten Alive</em> helped, as did the concepts in Dale Carnegie’s <em>How to Win Friends and Influence People</em>. It was a strange new world for me. I wondered about taking some sort of training class, but any doubts that I had were quickly dispelled by my new boss who informed me that he would teach me everything I needed to know. <br />
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I set out to make my fortune. Under the tutelage of my boss and a few other sales people that pitied the new recruit, I began a new career in sales. I had no idea what I was doing. I learned great bits of wisdom such as, “If they aren’t saying no, they are saying yes.” I struggled to accept that every “no” got me one step closer to “yes.” I discovered the value of being a persistent, professional pest, and as much as I like to talk, I recognized the power of silence as a negotiating tool. My boss taught me to “up sell” and to direct prospects to products with higher commissions. I picked up the so called secrets of selling fairly easily and quickly. I was on my way to being a salesman. How could I go wrong? My boss would teach me everything I needed to know.<br />
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Unfortunately, I was not on my way to being a successful salesman. My boss was a fine man. He was thoughtful and kind. He did a good job of organizing the sales territory. He knew the customer base and the product, and he seemed a “natural” salesman. He was patiently encouraging. He learned his craft over many years, and he had many teachers. Unfortunately, as with many people who do something well, he had no idea why he was successful. (This happens in other fields also. Great athletes do not always make great coaches.) The reason this was unfortunate, is that there was no way that he could teach me everything I needed to know. <br />
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Ultimately, I did manage to learn to be a good salesman. I learned how to consult with clients and understand their needs so that I could provide a solution instead of simply pushing a product. I learned how to provide value to the customer. I learned the importance of developing long-term relationships so that I could continue providing solutions and customer value through repeat business. It took me three years, and I ultimately changed jobs. That was when I learned the value of sales training.<br />
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My first experience with sales training came about six months into the new job. A major shakeup of senior management resulted in a new CEO and some reorganization. The new CEO decided to hold a company-wide meeting. One day of the meeting was set aside for sales training. This was the first formal sales training experience for much of the sales team, and all of us were skeptical. I had finally become an excellent sales person after three years of on the job training, and I was certain that there was nothing new for me to learn. This sentiment was shared by many of the high performers. Fortunately we kept an open mind. We learned a lot, and as a result of that experience my perspective on sales changed.<br />
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No matter your experience or your sales teams’ ability, sales training can help. Like any skill, sales can be taught. The quality of instruction will make a big difference in how well or how quickly sales can learned. Good training and practice can help novice salespeople learn the basics. The same training helps experienced and successful salespeople by confirming that they are doing the right things and helping them make adjustments if necessary. Sales training can help build a common vocabulary for your sales team and it helps standardize processes. Common vocabulary and procedures make it possible for teams to function smoothly. Sales training also helps support the idea that selling is an activity that can be studied and practiced. Training helps reinforce the importance of planning, and it serves as an important reminder to pay attention to detail.<br />
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There are many different types of training programs. Whether you are an experienced salesperson or just learning the ropes, training may be able to improve your sales skills. Give it a try.<br />
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<iframe align="left" frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="http://rcm.amazon.com/e/cm?t=helpwithsmall-20&o=1&p=8&l=bpl&asins=B000CC49JO&fc1=000000&IS2=1&lt1=_blank&m=amazon&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr" style="align: left; height: 245px; padding-right: 10px; padding-top: 5px; width: 131px;"></iframe> <iframe align="left" frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="http://rcm.amazon.com/e/cm?t=helpwithsmall-20&o=1&p=8&l=bpl&asins=1439167346&fc1=000000&IS2=1&lt1=_blank&m=amazon&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr" style="align: left; height: 245px; padding-right: 10px; padding-top: 5px; width: 131px;"></iframe>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-56617643989728526532011-11-08T12:35:00.000-08:002011-11-14T05:45:48.855-08:00Does No Job Mean No Taxes?<span style="font-family: inherit;">I’ve heard this question a lot. The answer is, “It depends.”<o:p></o:p> </span><br />
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</span><span style="font-family: inherit;">One of the surprises waiting for newly unemployed people is that their unemployment compensation is considered taxable income. However, that may not be the only surprise. In this article, I’ll go over a few things that you need to consider if you find yourself unemployed.</span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: inherit;">What is taxable income?</span></b><br />
<span style="font-family: inherit;">The general answer is that if you receive income, it is taxable unless it is specifically exempted by law. Among the things considered income are money that someone pays you for working for them, income that you earn in your own business, interest (unless it is exempt), dividends and capital gains. If you owe money and the debt is forgiven, then that is also usually income. (If you want a comprehensive explanation, IRS Publication 525, Taxable and Nontaxable Income covers this topic in just over 40 pages.)</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: inherit;">How much tax do I have to pay on unemployment compensation?</span></b><br />
<span style="font-family: inherit;">That is another question with, “It depends,” for an answer. If your only income is unemployment compensation, you may not have to pay any tax depending on the total amount you receive, your filing status, and deductions and credits. In 2010, the personal exemption was $3,650 and the standard deduction for a single filer was $5,700.<span style="mso-spacerun: yes;"> </span>If your unemployment compensation totaled $9,350, the standard deduction and the personal exemption would reduce your taxable income to zero. However, additional sources of income or a different filing status could change the answer. If you are married and your spouse works, then that income may also affect the tax you pay. You have the option of having taxes withheld from your unemployment compensation. Read the information that was provided when you filed very carefully.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: inherit;">Previous Employment</span></b><br />
<span style="font-family: inherit;">Let’s take a look at some of the other sources of income that you might have. One source of income is likely to be your previous job. Unless you became unemployed in the last calendar year, then you probably have income from your job this year.<span style="mso-spacerun: yes;"> </span>It is easy to forget this income, especially if it has been some time since your last check. If you worked in an industry that paid you in stock or options or something similar, then you may also have taxable income related to that compensation.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: inherit;">Odd Jobs</span></b><br />
<span style="font-family: inherit;">Many unemployed people make ends meet while looking for full-time permanent work by working temporary jobs or by working as a contractor. This income is taxable, and it could also create problems at tax time if you are not aware of a few things. Money earned doing temporary work or working as a contractor can add up to a nice sum. However, the amount from each individual job may not be enough for the employer to withhold enough tax to keep you from having to pay a large amount and even penalties for underpayment. Be sure to keep track of your earnings from temporary and part-time jobs, and remember that the income is taxable.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><span style="font-family: inherit;">If you work as a contractor, you should also be aware of something called Self-Employment Tax. When you are a contractor, you are essentially self-employed, and you become responsible for both the FICA (Social Security) that would normally be deducted from your check by an employer and the portion that would be paid by the employer. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: inherit;">Savings and Investments</span></b><br />
<span style="font-family: inherit;">Do you have investment income? <span style="mso-spacerun: yes;"> </span>If you had been a regular saver or investor, then you may have accounts that pay you interest, dividends, and capital gains each year. It is easy to forget about this income until you receive the 1099’s from your bank or investment company.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><span style="font-family: inherit;">You may be using that savings or investments to pay your living expenses. If your money was in a checking or savings account, the only consequence of your withdrawals is that your balances are getting smaller. However, if your money is in stocks or bonds (including mutual funds) or in special accounts like IRAs you may face some tax consequences.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><span style="font-family: inherit;">When you sell mutual funds or stocks and bonds, then you are subject to capital gains tax on the difference between what you paid and what you received when you sold. If you sold for less than you paid, then you have a loss.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><span style="font-family: inherit;">If you withdraw money from IRAs or take distributions from a pension or annuity, then you may be required to pay tax on the amount you withdraw. In addition, depending on your age and how you withdraw the money, you may also be subject to additional taxes. You may also find that some annuities have surrender charges.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: inherit;"><br />
</span><span style="font-family: inherit;">These are just a few of the issues that might be of interest to people that are unemployed. If you are unsure of your tax liability, be sure to contact a CPA or trained tax professional to discuss your unique situation. </span></div>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-28969160208037103662011-11-07T10:47:00.000-08:002011-11-07T10:47:23.988-08:00The first Form 1040 in 1913Take a look at the first 1040. The form and instructions are only four pages long.<br />
The <a href="http://www.irs.gov/pub/irs-utl/1913.pdf">first Form 1040 was produced in 1913</a> after the 16th Amendment was ratified. The amendment said,<br />
<blockquote>The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.</blockquote>The <a href="http://www.irs.gov/pub/irs-utl/1913.pdf">1913 Form 1040</a> was three pages long, and it was accompanied by one page of instructions. The normal tax rate was one percent.<br />
<blockquote>The normal tax of 1 per cent shall be assessed on the total net income less the specific exemption of $3,000 or $4,000 as the case may be. (For the year 1913, the specific exemption allowable is $2,500 or $3,333.33, as the case may be.)</blockquote>There was also an additional or super tax on taxable income above $20,000 as shown below.<br />
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<table border="1" cellpadding="0" cellspacing="0" class="MsoTableLightShading" style="border-collapse: collapse; border: currentColor; mso-border-bottom-alt: solid black 1.0pt; mso-border-bottom-themecolor: text1; mso-border-top-alt: solid black 1.0pt; mso-border-top-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="height: 1pt; mso-yfti-firstrow: yes; mso-yfti-irow: -1;"><td style="background-color: transparent; border-color: black rgb(240, 240, 240); border-style: solid none; border-width: 1pt medium; height: 1pt; mso-border-bottom-themecolor: text1; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 5;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">Rate</span></span></b></div></td><td style="background-color: transparent; border-color: black rgb(240, 240, 240); border-style: solid none; border-width: 1pt medium; height: 1pt; mso-border-bottom-themecolor: text1; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 1; text-align: center;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">on the</span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 1; text-align: center;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">amount</span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 1; text-align: center;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">over</span></span></b></div></td><td style="background-color: transparent; border-color: black rgb(240, 240, 240); border-style: solid none; border-width: 1pt medium; height: 1pt; mso-border-bottom-themecolor: text1; mso-border-top-themecolor: text1; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 1; text-align: center;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">and not</span></span></b></div><div align="center" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 1; text-align: center;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">exceeding</span></span></b></div></td></tr>
<tr style="height: 1pt; mso-yfti-irow: 0;"><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 68;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">1%</span></span></b></div></td><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 64; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$20,000</span></span></div></td><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 64; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$50,000</span></span></div></td></tr>
<tr style="height: 1pt; mso-yfti-irow: 1;"><td style="background-color: transparent; border: rgb(240, 240, 240); height: 1pt; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 4;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">2%</span></span></b></div></td><td style="background-color: transparent; border: rgb(240, 240, 240); height: 1pt; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$50,000</span></span></div></td><td style="background-color: transparent; border: rgb(240, 240, 240); height: 1pt; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$75,000</span></span></div></td></tr>
<tr style="height: 1pt; mso-yfti-irow: 2;"><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 68;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">3%</span></span></b></div></td><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 64; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$75,000</span></span></div></td><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 64; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$100,000</span></span></div></td></tr>
<tr style="height: 1pt; mso-yfti-irow: 3;"><td style="background-color: transparent; border: rgb(240, 240, 240); height: 1pt; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 4;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">4%</span></span></b></div></td><td style="background-color: transparent; border: rgb(240, 240, 240); height: 1pt; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$100,000</span></span></div></td><td style="background-color: transparent; border: rgb(240, 240, 240); height: 1pt; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$250,000</span></span></div></td></tr>
<tr style="height: 1pt; mso-yfti-irow: 4;"><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 68;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">5%</span></span></b></div></td><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 64; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$250,000</span></span></div></td><td style="background: silver; border: rgb(240, 240, 240); height: 1pt; mso-background-themecolor: text1; mso-background-themetint: 63; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 64; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$500,000</span></span></div></td></tr>
<tr style="height: 1pt; mso-yfti-irow: 5; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border-color: rgb(240, 240, 240) rgb(240, 240, 240) black; border-style: none none solid; border-width: medium medium 1pt; height: 1pt; mso-border-bottom-themecolor: text1; padding: 0in 5.4pt; width: 0.6in;" valign="top" width="58"><div class="MsoNormal" style="margin: 0in 0in 0pt; mso-yfti-cnfc: 4;"><b><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">6%</span></span></b></div></td><td style="background-color: transparent; border-color: rgb(240, 240, 240) rgb(240, 240, 240) black; border-style: none none solid; border-width: medium medium 1pt; height: 1pt; mso-border-bottom-themecolor: text1; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: right;"><span style="color: black; mso-themecolor: text1; mso-themeshade: 191;"><span style="font-family: Calibri;">$500,000</span></span></div></td><td style="background-color: transparent; border-color: rgb(240, 240, 240) rgb(240, 240, 240) black; border-style: none none solid; border-width: medium medium 1pt; height: 1pt; mso-border-bottom-themecolor: text1; padding: 0in 5.4pt; width: 1in;" valign="top" width="96"><div align="right" class="MsoNormal" style="margin: 0in 0in 0pt; text-align: right;"><br />
</div></td></tr>
</tbody></table>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-53374506489926584492011-07-18T18:53:00.000-07:002011-11-08T12:57:24.228-08:00Before you can find an answer, you have to know the question.<span style="font-family: Calibri;">I had an interesting conversation the other day. I have a colleague who is a consultant, and he does some volunteer work with </span><a href="http://www.score.org/"><span style="color: blue; font-family: Calibri;">SCORE</span></a><span style="font-family: Calibri;">, an organization that provides mentoring and other services to small business owners. Recently a client asked if he knew anything about salesforce, and he asked if she was referring to the web-based CRM tool, </span><a href="http://www.salesforce.com/"><span style="color: blue; font-family: Calibri;">www.SalesForce.com</span></a><span style="font-family: Calibri;"> or to something else. Since he answered her question with another question she concluded that he would not be able to answer her question.<span style="mso-spacerun: yes;"> </span>That was an unfortunate assumption because my colleague probably did know the answer. As the conversation progressed, my friend continued to trying to figure out whether the questioner wanted to know about the software, CRM in general, or if she had some other specific questions. She was not sure. All she knew is that she wanted to know about salesforce.</span><br />
<span style="font-family: Calibri;">This sort of miscommunication is not uncommon. In the accounting field, clients often want help with their “QuickBooks.” The difficult thing for people trying to help clients with questions about QuickBooks is that the questions do not address the real problem or problems. Is the problem that the books are not set up in a way that reflects the business? Are they too complex? Is there a specific question about how to bill clients or how to pay vendors? Is payroll a problem? Is there an issue with inventory? Without knowing what the client means when he or she says, “Can you help me with QuickBooks?” it is simply not possible to help. If it is a question about how to prepare an invoice or record a payment, then the answer may be short and simple. <span style="mso-spacerun: yes;"> </span>If the client has a lot of questions, the most satisfactory response might be to suggest a couple of hours of training or a formal class.</span><br />
<br />
<span style="font-family: Calibri;">At one time in my life, I worked in financial services. The common client question in that industry was something along the lines of, “Can you help me with my investments?” There is no single answer to the question because it is not specific. I had no idea if the client wanted help setting up a savings program, understanding investments, planning for retirement, or figuring out a way to pay for a child’s college in 15 years. There were plenty of times that the client wanted help with everything I just mentioned and more. </span><br />
<br />
<span style="font-family: Calibri;">The common element in each of these examples is that the questioner does not know what to ask, and it reduces the likelihood that he or she will find an answer. The solution to this problem depends on whether you are asking or answering.</span><br />
<br />
<span style="font-family: Calibri;">If you are the person asking the question, take the time to think through what you want to know. If your question is very broad, break it into pieces. In the last example, from financial services, you are much more likely to find useful answers to your questions if you are specific. If you see a financial planner or investment advisor, taking the time to narrow your focus will help the person addressing your concerns tailor a response to your needs. If you really do need help with “everything,” or you do not know enough to be specific, then you can frame your question that way. <span style="mso-spacerun: yes;"> </span>If you have a lot of questions, make a list.</span><br />
<br />
<span style="font-family: Calibri;">When you ask a question and the person you ask responds with more questions, do not assume that he or she is trying to avoid your question. It is more likely that he or she is trying to understand your question, or if the question contains many parts, is trying to understand your priorities and objectives.</span><br />
<br />
<span style="font-family: Calibri;">If you are responding to a question, and the question is unclear, then your first goal should be to help the client clarify what he or she wants to know. If the client really does want an overview, then you should be able to establish that fairly quickly. If he or she has more specific concerns, then you may need to ask questions that will enable you to discern those concerns. <span style="mso-spacerun: yes;"> </span></span>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-86842971561804136632011-06-12T17:36:00.000-07:002011-11-07T10:29:58.962-08:00Lessons from a paper route: Managing growthWhen I became a paperboy, I had between 30 and 40 customers on my route. That was a manageable number. I usually could put all of my papers in my bag or in my bicycle’s baskets. When the weather was good and the papers were small, I could finish my route in under an hour. Bigger papers required several trips, and on the days when the papers were larger, the route took longer. When the weather was bad, the route did not take longer, but it seemed longer. <br />
<br />
One of the things I learned fairly quickly as a paperboy was that my income was limited by the number of papers that I delivered. I did my best to get the papers to customers on time and delivered where they wanted them. Paying attention to whether the paper went on the porch or behind the screen door or under the mat made a big difference in how big a tip customers added when I collected. However, I was still limited. It did not take me long to figure out how to make more money. I had to grow. <br />
<br />
Now that I know something about business, I know that the two main ways to grow a business are:<br />
<ul><li> Organic growth </li>
<li>Acquisition</li>
</ul>Then I knew that my options were to hustle for new customers or to take over another route. I knew that some of the older paperboys had 70 or 80 or more customers. I was already busy selling subscriptions to new customers. I started planning how to get a new route. Paperboy turnover was fairly high, so I knew that I would get an opportunity. <br />
<br />
As luck would have it, the next available route was the one adjacent to mine. I would be able to add 30 or so customers simply by agreeing to add them to my route. I had just learned my first lesson in growing a business. Acquisition is faster than organic growth. Unfortunately, that was not my only lesson in growth. I was about to learn about capacity, customer management, and ultimately failure. <br />
<br />
As it turns out, one of the reasons that the older paperboys had larger routes is that they were bigger and stronger. They could carry more papers, and they could travel longer distances with heavier loads. Once I added extra customers, I could rarely finish the route without making two trips, and it often took me three. I was rarely able to finish the route in less than two hours. It took me so long to deliver the paper when I was collecting payments each week that I had to separate my collections into two days. <br />
<br />
These problems with the route quickly became customer service problems. When I could deliver the paper in an hour, it was easy to deliver the paper on time. Once the delivery time crept up to two and three hours, the papers were late. Another thing that happened is that I began losing track of customers. It was easy to manage 30 or 40 customers. I had a simple card system, and since I saw each customer once a week when I collected, I could make notes about starting and stopping the paper or other requests. It was much more difficult to manage the process with 70 customers. I began learning ways to manage larger numbers of customers. Sadly, I did not do a very good job, so I also began learning how to work with unhappy customers. <br />
<br />
Finally, I learned about failure. While I wanted to have a larger route so that I could earn more, I was not able to manage it. The result was unhappy customers. Unhappy customers meant fewer tips. Since tips were a large part of my income, I actually found myself working more than twice as hard and making just a little more money. The next thing to happen was that customers started complaining to the paper or canceling their subscriptions. In the end, I gave up most of my new customers, and it was not too very long before I gave up my paper route. (I started working a new route for a different paper, but that is another lesson.) <br />
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So what lessons about managing growth can a modern business person learn from a paperboy? The first is to have a clear understanding of your objectives and plan accordingly. What do you want to do? Do you want to grow slowly and steadily? Do you prefer rapid growth? Consider the two paths: Organic growth which builds an organization slowly or acquisition which can build an organization faster. I thought that acquiring an additional route would be faster and easier than growing by adding customers one at a time. <br />
<br />
The next lesson is to understand capacity. Companies that grow organically generally increase their capacity as they increase the number of customers they serve. They may still be limited by capacity constraints, however. Companies that grow by acquisition should pay close attention to capacity. While they may think that systems are compatible, they may find that they have a larger customer base that they cannot serve because they are limited by their capacity. <br />
<br />
Another lesson is to pay attention to logistics. While I was able to take over the route next to mine, part of the route was on the other side of a busy street. When I took over the new route, I had to figure out a way to make deliveries without crossing that street. I also had to figure out how to carry more papers over longer distances because my new customers were further away from the paper drop off. <br />
<br />
<strong>What this means to you</strong><br />
If you are looking for ways to grow your business, take a moment to think about your objectives and how you might accomplish them. When you are planning, be sure to think about how you want to grow. Consider your capacity and logistics and how you might increase your capacity as you build your business. <br />
<br />
It has been a long time since I was 14 and riding a bike with baskets full of newspapers or walking down the street with a canvas sack full of the day’s news. However, the more I learn about business the more I realize that I learned important lessons on that paper route. Who knows? Maybe the next time you hire someone to manage your business, instead of asking where they got their MBA, you should ask them about their paper route.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-59163637528108211572011-06-04T08:28:00.000-07:002011-11-07T10:35:44.287-08:00Because there is more to life than just work: Vacations are good for you<span style="font-family: Calibri;">I learned an important lesson early in my career. Mike, my sales manager, told me that vacations are important.<span style="mso-spacerun: yes;"> </span>I did not believe him. It is counterintuitive that taking time off could increase your output and income. There are only so many hours in a day and the more of them that you use for work, the more successful you will be. That just makes sense doesn’t it?</span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Yes and no. All other things being equal, the more hours you work, the more you will produce. Checking your Facebook page when you should be working on a project will make you less productive. However, all other things are not equal, and production can be difficult to measure. I am a CPA, and in the simplest terms, I work (and bill) by time. Like many professionals, my productivity can be measured in terms of billable hours. Measuring my productivity becomes a little more complex when looking at the bigger picture. Consider the things that I do that are not billable. I study to keep abreast of changing regulations and to increase my knowledge. I take time to listen to my clients express their concerns in ways that may not relate directly to the work I do for them.<span style="mso-spacerun: yes;"> </span>I am an active participant in my professional association. None of these things add to the bottom line. However, they do make me a better accountant, and they help me do a better job for my clients. In the long run, this will increase my value to my clients and to my firm.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">What about vacations though? Can they improve productivity? If you take time off from work, will you actually be better at work? My sales manager thought so, and he was the kind of person that thought that a 60 hour work week was taking it easy.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">In college, I raced bicycles. We rode our bikes every day, and we pushed ourselves. I was always tired. One of the people I rode with was an incredible athlete, and she was invited to the Olympic Training Center. <span style="mso-spacerun: yes;"> </span>When she returned from the OTC, she shared her new training “secret.” It was simply that to be a better athlete, work harder. In order to work harder when you work, rest! We started taking rest days, and we began alternating hard riding days with easier days. The result was that I could ride faster and further. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">This same concept applies to work. Time away from work gives you the opportunity to refresh your mind and body. It does not matter what you do for vacation. Whether you were sipping umbrella drinks on a beach, climbing a mountain, </span><a href="http://boundarywatersblogger.blogspot.com/2011/06/northern-exposure-in-real-life-moose-in.html"><span style="color: blue; font-family: Calibri;">canoeing in the wilderness</span></a><span style="font-family: Calibri;">, visiting family, or simply staying home and hanging out around the house, when you return to work, it will seem easier, and you will be a better worker.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Does this seem too good to be true? Consider the French. With short work weeks and a lot of vacation, the French are often derided unproductive, and whenever the French economy slows, many people are quick to say that the French should work more. </span><a href="http://www.ncpa.org/sub/dpd/index.php?Article_ID=3588"><span style="color: blue; font-family: Calibri;">However, a 2004 report by the National Bureau of Economic Research</span></a><span style="font-family: Calibri;"> pointed out:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"></span></div><span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;"></span><br />
<span style="font-family: Calibri;"><blockquote>Over the past 30 years, productivity growth has been higher in France than in the United States. Moreover, productivity levels are about the same between the two countries . . . <span style="mso-spacerun: yes;"> </span>France's GDP per person stands at 71 percent of GDP per person in the United States, largely due to the French working two-thirds as many hours as their American counterparts.</blockquote></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">That suggests that the French produce nearly three-quarters of the output of the US even though they only put in two-thirds of the work. Part of the difference is that the French assign a higher value to leisure while Americans assign a higher value to income.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Do you encourage your employees to take time off to refresh? Are you planning a vacation this year?</span></div>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-16943136612382385792011-03-16T19:25:00.000-07:002011-11-07T10:39:27.611-08:00Lessons from a paper route: Getting paid – a paperboy’s guide to Accounts Receivable and collections.In an earlier post, I wrote about delivering papers and how I learned that getting the job done lead to happy customers. Getting the job done meant delivering the paper on time and in a readable condition. We did not realize it at the time, but we were actually running our own small businesses. Paperboys were responsible for delivering papers, for collecting from customers, and even for sales and marketing. Picking the paper bundles up at the train station, assembling the paper, and delivering it to doorsteps across town was only part of the job.<br />
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My paper route was my first experience with accounts receivable and collections. In my town, paperboys delivered the paper and personally collected from customers. The paper cost seventy five cents each week. A small percentage of customers only took the Sunday paper, and they paid a quarter. Thursday was collection day. I would sling the bag I used to carry papers over my shoulder and start my route in the usual manner. However on collection day I would ring the bell at each house and let the customer know that I was collecting for the week’s paper. I kept track of what each customer paid with a set of cards on a ring. Each card had the customer’s and any special delivery instructions in the middle, and a box for each week around the outside of the card. When the customer paid me, I marked the box.<br />
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Cash flow is one of the biggest problems facing small businesses, and one of the keys to managing cash flow is to do a better job of managing accounts receivable. <a href="http://www.leitahart.com/">Leita Hart</a>, a CPA based in Austin, Texas who provides excellent training programs to businesses, to government agencies, and to other accountants has written a simple yet effective book on the topic of cash flow, <em><a href="http://www.amazon.com/Four-Principles-Happy-Cash-Flow/dp/1591964849?ie=UTF8&tag=helpwithsmall-20&link_code=btl&camp=213689&creative=392969" target="_blank">The Four Principles of Happy Cash Flow</a><img alt="" border="0" height="1" src="http://www.assoc-amazon.com/e/ir?t=helpwithsmall-20&l=btl&camp=213689&creative=392969&o=1&a=1591964849" style="border: currentColor; margin: 0px; padding: 0px !important;" width="1" /></em>. One of her principles is <em>getting money in the door faster</em>. If your eyes glaze over when you hear terms such as cash conversion cycle, you need to read her short book.<br />
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Some of the things I learned as a paperboy can help you manage your receivables. The first five items will help you improve your collections, the last item will help you improve the quality of your service and increase your sales. <br />
<ul><li>Collect regularly</li>
<li>Collect on time</li>
<li>Expect timely payment</li>
<li>Do not let past due accounts linger</li>
<li>Tie collection to something that reminds what they are getting for their money</li>
<li>Take advantage of the customer contact</li>
</ul>There is a reason that bills come every month. Regular billing is easier than ad hoc billing, and it creates an expectation in the mind of the customer. Customers are creatures of habit. Even with electronic banking, consumers typically set aside a certain time each week or month to pay bills. Small business customers behave in much the same way, and larger businesses that have employees or even departments set up to pay bills, also find it easier to manage bill payments by setting up a schedule. My paper route customers knew that I would be along every Thursday to collect, and they had the money waiting by the door for me.<br />
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Once you have a collection schedule, stick to it. Do not be late. When I missed my Thursday collection, my customers were confused. By Friday or Saturday, the money they had set by the door had gone to some other use.<br />
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Always expect to be paid, and expect to be paid on time. You have made an agreement to provide a good or service, and your customer has agreed to pay you something in return. Keep your side of the agreement, and be clear that you expect your customers to keep to the agreement. One of my first lessons as a paperboy was that if customers did not have change, or left their purse or wallet in the car, it was the beginning of a bad relationship. I learned not to walk away from the door until I was paid. There are several reasons that customers may not want to pay you. They may manage their cash flow by delaying payables. Similarly, they may not have the money to pay you. However, withholding payment could also be an indication of customer dissatisfaction. Whatever the reason, you need to figure it out and address it.<br />
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Don’t neglect late payments. Two things happen when customers do not pay on time. The first is that as the time between the purchase and the payment grows longer, customers stop associating the value they received with the payment you are asking them to give you. They become less and less likely to pay you. Another thing that happens, particularly if the bill continues to grow, is that the customer becomes very aware of the amount of money and begins to question the size of the bill. As a paperboy, it was easy to collect a buck and a half if I missed a week. It was much harder to collect $2.25 or $3.00 or more.<br />
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When you collect, you should always remind customers why they are paying you. When I was a paperboy, I gave the customer the paper when I asked for payment for the week. You can do the same thing by providing detail in your billing statements.<br />
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Take advantage of your contact with customers when you collect. If all you do is ask for money, then you are missing great opportunities to get feedback from your customers that you can use to improve the quality of your product. You are also missing opportunities to find out if your customers have other needs that you can address.<br />
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Whatever your business, you can improve your cash flow by improving your collections. Hopefully, these simple things I learned as a paperboy will give you some ideas about how you can improve collections in your business.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-88555630192675731542011-03-11T18:53:00.000-08:002011-11-08T12:40:45.534-08:00Lessons from a paper route: Getting the job done and keeping the customers happyI was a paperboy. I had about 35 customers in a suburban town in New Jersey. After school each day, I stopped by the train station where the truck from the <em>Bergen Record</em> dropped off bundles of papers for the five or six boys that delivered in my part of town. I would either load the papers into baskets on my bicycle, or I would carry them in a big canvas bag.<br />
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The papers had to be delivered in time before all of the fathers arrived home from their jobs in New York City so they could read the paper before dinner. That usually was not very difficult. School was out by 3:15. If I started my route by 4:00, I could finish by 5:00 on a good day. Saturday and Sunday papers had to be delivered by 8:00. The Sunday paper took longer because it was always delivered in several sections, and it took extra time to assemble the paper before we delivered it.<br />
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All of this was a great experience for a not yet teenage boy, especially when the papers were small and the weather was good. The US Postal Service may not have adopted the words inscribed on the New York post office, “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds,” as a motto, but they surely applied to the paper boys in Glen Rock, NJ. The papers were not always very small either. Large papers were difficult because they took extra time to assemble and because paperboys had limited carrying capacity. Large papers frequently meant that a route that could be walked or biked in half an hour could take as long as an hour and a half or more because the carriers had to make several trips.<br />
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You should be getting the idea that there were days that it just was not fun to be a paperboy. It always seemed as if it rained or snowed on the days when the paper was the largest. Those were the days that as I walked in the door after finishing the route, hungry because I was later for dinner, my mother would say, “Mrs. C called, and the paper was wet,” or “The Mr. M called and wanted to know why his paper was late.” I did not realize it at the time, but this was an important lesson, and it was good experience for later in life. I might have been cold and wet and hungry because I was late, but that did not matter. The papers were also wet and late. My customers expected me to deliver their papers on time and in readable condition. The weather did not matter. The size of the paper did not matter. Nothing mattered except that the paper was delivered as promised.<br />
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I hope it does not sound as if I had unbearable customers. My customers were fabulous, and they liked having me as their paperboy. They were generous with tips when I collected, and when they saw me in town, they always had a kind word for me.<br />
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The lesson from the paper route was simple. When I began my route, I agreed to deliver papers. My customers, who paid me for my service, expected me to deliver. It was not always easy, but that was our agreement. If that lesson seems too simple consider how many times service providers don’t deliver. The idea that getting job done means happy customers was a big lesson for a young businessman. It was a lesson from my paper route that I remember today.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-27458158738512293632011-02-08T10:44:00.000-08:002011-11-08T12:50:21.323-08:00Reconsidering who is importantHave you ever thought about the people around you and the work they do? In the context of your own business, have you ever tried to evaluate the relative importance of different jobs?<br /><br /><div></div>There are all sorts of ways to measure employees’ worth. The easiest and most common way is by looking at position and salary. An organization chart is a good way to tell what a company values. Generally pay, power, and prestige increase as positions go from the bottom of the chart to the top. It makes sense that the people at the top of an organization chart are the most important. Or does it?<br /><br /><div></div>There is an entire theory of organizational dynamics that is based on informal chains of command. The idea is that regardless of the formal structure, people within organizations create their own structures. It is disconcerting how little correlation there is between some of the informal structures that researchers have found and formal hierarchical organization charts.<br /><br /><div></div>If the supervisors are not more important than the front line workers and the managers are not more important than the supervisors, and the division directors are not more important than the managers, then who is important? Is it the CEO? No. Here is a short list:<br /><ul><li>The person that seems to know everybody, remembers a lot of company history, and knows how things work,</li><li>The administrative assistant who knows how to find everything,</li><li>The assistant who prepares all of the agendas for important meetings, and</li><li>The receptionist or switchboard operator that knows everyone everybody.</li></ul>If you have ever been in sales, you know this list. These are the same people you get to know when you are trying to develop a relationship with a key client. Their opinions matter, even if they do not have a title or a desk in the executive suite. You will not even get a chance to pitch your product to the ultimate buyer if you do not sell to these people first. I’ve often found it amusing to read job ads for sales people that demand experience selling to C-level executives. The ads should ask for the people skills to interact with the people in the lobby or at the desk outside the executive’s office door.<br /><br /><div></div>If you have ever been a customer, then you know how important the last person on the list can be. Receptionists and switchboard operators are the first people that the public meets. Interestingly, companies that will spend huge amounts on web sites and advertising will often become very tightfisted when it comes time to hire administrative assistants, receptionists and switchboard operators. It occurs to me that companies send a not so subtle message to their customers when they don’t allocate resources to the people that customers contact most frequently. A good example of this is the trend toward outsourcing customer service. Instead of recognizing the competitive advantage of high quality customer service, many companies outsource this function to save money. The predictable result when customers interact with disinterested, poorly trained people without authority is that customers become unhappy. The same thing happens when companies replace the receptionist in the lobby with a security kiosk and a contracted security person. Do you really think your customers and vendors would rather check in with a bored security guard putting in the hours on a 12-hour shift than a knowledgeable and personable receptionist? Was it really a good idea to replace the switchboard operator with an electronic system that frustrates customers?<br /><br /><div></div>I think a good case can be made that some of the most important people in a company are the ones near the bottom of the organization chart. Whatever your business, you need to put knowledgeable, well-trained, and personable people in front of your customers. You also need the people within the organization that know the organization’s history and ways of doing things, and you need the people that seem to know everybody. If you think of your business as if it were a car, then these employees are like the tread on the tires that keep the car on the road and the oil and grease that keep everything moving without friction.<br /><br /><div></div>Maybe it is time to reconsider who is really important in your company. The next time you walk past the receptionist in the lobby consider that you may be walking past the most important person in your company (unless you have outsourced the job). Stop and say hello.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-19397618011959975952011-02-06T11:21:00.000-08:002011-11-08T12:52:55.800-08:00IRS Portal Provides Help to Small Business OwnersDid you know that the IRS offers free online presentations and webinars? Check out the <a href="http://www.tax.gov/">IRS Video Portal </a>for<br />
<ul><li>Archived versions of live panel discussions</li>
<li>Archived webinars</li>
<li>Video clips</li>
<li>Audio archives of tax practitioner phone forums</li>
</ul>The portal offers a wealth of material for individuals, small businesses and tax practitioners.<br />
<div></div><div>Click on the <a href="http://www.tax.gov/SmallBusinessTaxpayer">Small Business tab</a>, and you will find a list of topics. The list below describes some of the material available in the various areas.</div><ul><li>Business Expenses: Includes a summary of the 2009 law change affecting net operating losses and a video on home office deductions.</li>
<li>Business Income</li>
<li>Changing Your Business</li>
<li>Disaster Information</li>
<li>Employers: Information about payroll, hiring family members, required taxes, and similar topics.</li>
<li>Filing/Paying Taxes</li>
<li>Forms: </li>
<li>Post-Filing Issues: If you have questions after filing, this is a place to learn about letters and notices, examinations, collections, offers in compromise, and other topics.</li>
<li>Resources</li>
<li>Retirement Plans: This section contains information about retirement plans for small businesses. The topics include funding and benefit restrictions, SEPS, and more.</li>
<li>Scams & Fraud: This includes several overviews that can help keep you from being a victim of a scam or a fraud.</li>
<li>Small Biz Workshop: "The Virtual Small Business Tax Workshop is composed of nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities."</li>
<li>Starting a Business: Includes a variety of videos on topics such as record keeping and Schedule C requirements.</li>
</ul>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-43062994848234089352011-02-05T19:10:00.000-08:002011-11-08T12:39:38.388-08:00Excellent Customer ServiceI’ve been an examiner for a fairly well known quality award, the <em>Texas Award for Performance Excellence</em> by the <a href="http://www.texas-quality.org/">Quality Texas Foundation</a>. It is a Texas version of the <a href="http://www.nist.gov/baldrige/">Malcolm Baldrige National Quality Award</a>. I also worked for a dozen years in the planning and research group for a major professional association. I’ve had a lot of experience trying to understand quality and what it means to deliver excellent customer service. I have decided that the thing that makes the “best in class” better than everybody else is the willingness to go beyond the expected. <br />
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I received an interesting letter in the mail today. It was from <a href="http://www.ellisandsalazar.com/">Ellis and Salazar</a>, the body shop that repaired my car last year after I ran into a deer while driving home from work. I was not sure what to expect when I saw the letter in the mailbox. The letter turned out to be a reminder that the warranty period was about to expire. They were writing to ask me to go over my car thoroughly and to make sure that I was still satisfied with the work that they had done, and they were asking me to bring the car in if there were any unresolved issues. That was a surprise. <br />
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If you have ever been in a car accident of any type, then you know that getting a car repaired is not a pleasant experience. It starts bad, and it gets worse. You probably have heard the stories. Finding something to drive while your car is in the shop is a hassle. The shop is not able to do the work for what the insurance company will pay. It takes longer than promised. The paint does not match. The new windows leak. The list goes on and on.<br />
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I picked Ellis and Salazar because they were on my insurer’s list and because they had done satisfactory work for people I know. As I write this, there are 16 reviews on <a href="http://www.yelp.com/">http://www.yelp.com/</a> and they have a good rating. That is probably a difficult accomplishment because most customers at a repair shop of any kind are already not happy with their situations. Taking a car to a body shop is not nearly as much fun as going to an ice cream shop. It is a challenge to provide customer value in this type of situation. It does not take much to push an already unhappy person into the category of very unhappy customer. <br />
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So what’s with the letter? I vaguely remember something about a warranty. I think it is probably going beyond what body shop customers expect to write a letter encouraging them to go over their cars and look for problems. Most people probably want to forget their accident and everything that went along with it. That includes the warranty. If something comes loose or the paint peels, most people figure that is just part of the game. This sort of follow up is not common. When I shop for goods or services, I expect things to work and for services to be performed as promised. I consider these things to be the minimum that a business should do.<br />
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Unfortunately, most businesses seem to be happy with the minimum. Maybe their customers don’t care. I do care, and I do business with firms that don’t do the minimum. Ellis and Salazar finished the job when they said they would, and my Prius looked like new. I expected that. Now a year later, they have taken the time to check on me. I did not expect that. I hope I never need body work done on a car again, but if I do, then I will take my car to Ellis and Salazar.<br />
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So what is the point? Am I simply writing an endorsement for a body shop? No. I’m trying to illustrate that excellent customer service is as simple as doing the expected and then just a little more. It does not even have to cost much. The reminder letter I received cost less than a dollar to mail, and it is probably done automatically. Even so, it made me feel important as a customer. That is willingness to go the extra step, and that is excellent customer service.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-68251953279046972512011-02-04T18:52:00.000-08:002011-11-08T13:00:39.025-08:00Unsung HerosI spent some time in Newark airport over the Christmas holidays. It was a desolate place. A snowstorm rearranged a lot of travel plans, and the people that would normally have been bustling about were still at home or in hotels waiting for the days to pass until they could board their rescheduled flights. Most of the people in the airport had nowhere else to go. A few people were hoping that their regularly scheduled flight would actually be able to take off, and some of us thought we might get lucky with standby. <br /><br />Of course I’ve managed to leave out an unseen army of other people who were also at the airport. That is one of the points I hope to make with this post. I just spent a lot of time talking about the travelers, but said little the other people. The airport was also full of people helping stranded travelers, feeding people, keeping shops open. The TSA folks were there. So were the gate agents and the ground crew and who knows who else. It is easy to overlook all of those people. At the airport, we usually focus on our destination, and all of the people along the way fade into easily forgotten scenery, and we take them for granted.<br /><br />We shouldn’t.<br /><br />Organizations spend a lot of time and money trying to come up with ideas for new products or better ways of doing things. A lot of times they create special teams of senior staff or managers. However, ideas about how to run faster or jump higher in an organization can come from anywhere. There is no rule that says the best ideas come from management or from employees that have been around a while. Sometimes the best ideas come from the newest employees, and sometimes ideas come from people well removed from the executive suite. Ideas can come from all over the organization. I thought about this while I was wandering around Newark airport.<br /><br />I don’t know how many have seen the TV show Undercover Boss. It is a reality show in which the CEO of a company goes undercover and takes entry level jobs. It is an attitude adjusting experience. I watched an episode where the CEO of Frontier Airlines worked all sorts of jobs. (He was not very good at any of them.) He made a few changes after listening to people on the front lines who sell tickets, clean airplanes, and pump out toilets.<br /><br />If this seems surprising, we might need to think about things differently. It should make sense that the people closest to the customer or the people doing the heavy lifting will be the ones that think about new ways to do things. The CEOs on Undercover CEO are frequently surprised how little they know about the daily work of the people on the front lines of their business. <br /><br />I think many of us have a tendency to assign people to categories. It is easy and convenient, and it lets us ignore them. If you want an interesting example of this, look up Bill Crawford. He was a janitor at the Air Force Academy. He was just a janitor.<br /><br />I got a stern reminder of this tendency at Newark. With nothing better to do, I decided to get my shoes shined. We’ve all seen shoeshine people. We walk past them in airports or on the streets of large cities. As I settled into the chair and put my feet up, I remarked that I had not had my shoes shined since the Marine Corps sent me to the Army jump school at Fort Benning years ago. It turns out that the man doing my shine learned about shoe polish in the Navy. He retired after twenty plus years as a Chief and went to work handling logistics for a well known firm. When the recession hit, he lost his job. He started shining shoes because he just could not tolerate being idle. His son is stationed at Coronado Bay. That is three proud generations of Navy men. Except for the snow storm, I would have wandered past the shoeshine man, and I never would have heard his story or been reminded that everyone has something to contribute. I wonder how many executives struggling with supply chains or facilities issues sat in that shoeshine man’s chair and had no idea that the man shining their shoes probably had the solution to their logistics problems.<br /><br />The simple message that I received loud and clear while getting my shoes shined in Newark is this, “Everybody has value, and everybody has something to contribute.” If you want to be a successful business, then every single employee of your company needs to know this simple message and understand it. It is not enough for the management team to know the words. The employees have to know that you know the words and mean them when you say them. You can’t fake it.<br /><br />By the way, that janitor from the Air Force Academy earned the nation’s highest military decoration, the Medal of Honor.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-24558464366339911032010-12-08T11:57:00.000-08:002011-11-08T12:46:38.532-08:00Bank LocalBankers are not very popular these days. Neither are they considered very trustworthy. A quick search on <a href="http://www.google.com/">Google</a> or <a href="http://www.bing.com/">Bing</a> brings up quite a collection of articles about declining trust. Here are two examples.<br /><ul><li><a href="http://www.time.com/time/business/article/0,8599,1895264,00.html">What Banks are Still Missing: Trust</a>, May 4, 2009</li><li><a href="http://www.huffingtonpost.com/brett-king/trust-in-banksgone-how-to_b_785217.html">Trust in Banks…gone! How to get it back?</a> November 17, 2010 </li></ul>A healthy mistrust of banking is very trendy. Distrust of large financial institutions is as American as apple pie. The second and third Presidents of the United States were both leery of banks. President <a href="http://www.whitehouse.gov/about/presidents/johnadams">John Adams</a> was no friend of banks when he said,<br /><blockquote>Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good.</blockquote><a href="http://www.whitehouse.gov/about/presidents/thomasjefferson/">Thomas Jefferson</a> also had some scathing words.<br /><blockquote>I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. </blockquote>The problem with the universal condemnation of banks and bankers is that it is misplaced. There are several banking systems. Adams and Jefferson were writing about a national bank. The recent financial meltdown was caused by another type of bank, the “too big to fail” banks and financial institutions. These are the banks that consumer guru <a href="http://www.clarkhoward.com/">Clark Howard</a> calls “giant monster mega-banks.” <em>However, locally owned and community based banks still deserve our trust and respect</em>. If anything good comes out of the financial meltdown and the near collapse of the big banks, it may be a return to banking at locally owned and community based banks. If this happens, then it is part of a larger trend of doing business locally.<br /><br />Many modern banks and financial institutions are primarily transaction processors and speculators, but those are new roles for bankers. Banks, especially in small town America, used to be the institutions that helped start small businesses and made it possible for people to buy homes. When little boys and girls saved their allowance or paper route or babysitting money, they dutifully took it downtown to the bank, and the friendly banker put it into an account and marked the deposit in a passbook. Banks encouraged people to put money away for a rainy day or to save for big purchases. Before the days of MasterCharge (now MasterCard) and BankAmericard (now Visa), banks encouraged customers to save for holiday shopping with Christmas Club Accounts. Now banks encourage customers to take on high interest rate debt. It is hard to say which came first, the rise of giant banks or the change in social mores from planning and saving to debt. In either case, too much debt is a huge part of the morass in which the world finds itself today. It turns out that easy credit had consequences.<br /><br /><div></div>The solution is to return to banking as it used to be. If you know where to look, you can still find a friendly banker. There are still places where children can deposit their allowance into passbook accounts. You can still find bankers that will discuss your business plan and work with you to help your business succeed, and there are still banks that will lend you money because the loan committee knows you personally, and they consider your character as important as your <a href="http://www.myfico.com/">FICO</a> score. A community bank in Central Texas runs an ad where the banker asks, “Who is your banker?” He’s not asking the name of the bank. He’s asking the name of the person at your bank that knows your name. Do you bank where someone knows your name? <br /><br /><div></div>Local and community banks in your town also support neighborhood business. They have a vested interest in the success of the local grocery or pharmacy or hardware store because they shop in those stores. When the banker lends money to someone to open a new restaurant, it is not simply another loan to generate profit for the bank. Instead it is a new business for the community and another place that families, including the banker's family, can go out to eat.<br /><br /><div></div>Neighborhood bankers don’t just want local business to make enough money to repay their loans. They want local businesses to be successful so that the community is prosperous. When local banks make a profit, the money stays in the community and supports local business.<br /><br /><div></div>If you long for the days of a friendly banker that knows your name and not just your account number, if you want to do business with someone that will take the time to learn your business and wants you to succeed, if you want to bank with someone that is part of your community and not just a branch of some giant corporation, then it is time for you to start banking with the locally owned banks in your community.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-62096986928191644302010-12-02T08:06:00.000-08:002011-11-08T12:42:39.133-08:00Why Groupon SucceedsHave you ever used <a href="http://www.groupon.com/">Groupon</a>? Groupon is a service that sends out a daily email with coupons for local businesses. Most of the deals are pretty good. If you don’t have any idea what I am talking about, ask around. One of your friends probably subscribes to Groupon or has used it on Facebook. Business owners that have used Groupon to promote their business have reported that doing so resulted in a lot of sales. Groupon is a new company, and it appears to be successful. <a href="http://www.wired.com/epicenter/tag/groupon/">According to recent speculation</a>, <a href="http://www.google.com/">Google</a> may even be considering purchasing <a href="http://www.groupon.com/">Groupon</a>. <br />
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<div>The whole concept and implementation is innovative. Even so, there must be some secret to their success. Do you wonder what it is? Do they have some sort of super-efficient way to manage their vendor and customer relationships? Could it be cutting edge technology?</div><br />
<div>Well? The answers are no and no. The secret is their attention to detail and the quality of their writing. Groupon does not rely on business offering deals for ad copy. It has a writing staff. It may not be off-the-wall like this product description I’ve added to the end of this post for a wool coat from the <a href="http://www.jpeterman.com/">J. Peterman Company</a>, but according to CEO Andrew Mason,</div><blockquote>. . . having well-written, engaging content is a key part of convincing users to keep reading about new shops that they might never have never heard of.</blockquote>Creative writing was a hallmark of J. Peterman whose ad copy was so well known that it even ended up as part of the plot line on the popular TV show <a href="http://en.wikipedia.org/wiki/Seinfeld">Seinfeld</a>.<br />
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<div>Groupon works because Mason and his team understand the importance of branding and of articulating a value proposition to customers. Groupon recognizes that it has two customer groups: the vendor with the product and the customer looking for a deal, and it offers value to each group. Groupon’s brand represents good deals for consumers and an easy approach to product promotion using online coupons to for vendors, and the company avoids the trap of being another coupon clipping site.</div><br />
<div>Check out this blog article about Groupon. <a href="http://venturebeat.com/2010/09/15/demo-the-secret-of-groupons-success-is-good-writing/">DEMO: The secret of Groupon’s success is … good writing? </a></div><br />
<div> </div><div><a href="http://www.jpeterman.com/">J. Peterman Company</a> product description:</div><div></div><div style="text-align: center;"><strong>North Woods Know-How</strong></div>Men who wear jackets like this know things.<br />
<ul><li>How to start a fire in the rain.</li>
<li>Measure a cord of wood.</li>
<li>Build empires.</li>
</ul>Like Samuel Bingham. Started out as a saw-filer and eventually became “The King of the Cascades.” At 60, he was still showing the greenhorns how to untangle log jams on the Gatineau.<br />
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<div>Or J.R. Booth. Started out as a carpenter with $9 in his pocket. Worked well into his 90s and left a railway empire estimated at $33 million.</div><br />
<div>Clearly two men worth emulating.</div><br />
<div>Wool Zip Jacket (No. 2833). Both rugged and handsome, it’s made of a 90% Melton wool blend that’s brushed so the warp and welt yarns aren’t visible. 2-button adjustable cuffs. Side slits. Front and back yokes.</div><br />
<div>The front yoke is unique in that it covers the pockets, making them the perfect place to keep maps, a deed, or your GPS unit. Extremely warm but not bulky.</div><br />
<div>Every North Woods estate should come with one of these jackets and a black lab. Imported.</div><br />
<div>Men’s sizes: S, M, L, XL, XXL.</div><br />
<div>Colors: Navy, Red.</div>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-81920856307587994372010-11-30T15:30:00.000-08:002011-11-08T12:48:18.802-08:00A different approach to business plansI wrote a short note to an old Marine Corps buddy who is launching a new business. This is what I wrote.<br /><blockquote>Here are a few things for you to think about as you get rolling. <br /><br />You need to develop a one sentence description of your venture that captures the essence of what you plan to do. If you want to dust off your old field manual and use SMEAC that will work. Just be sure you cover the Who, What, Where, When, Why, and How.<br /><br />Be sure you have a clear vision of what you are trying to accomplish. In the business planning world, this is called a vision statement. Figure out something that helps share your vision that is memorable and short. KISS is the acronym to remember for this one. “Keep It Short and Simple.”<br /><br />You also need to have a clear understanding of your mission. One way to do this is to take the time to write out a simple mission statement. <br /><br />If all of this sounds like the beginning of a formal business plan, that is because it is. Here are the basic components of a plan.<br /><br />Summary <br />Overview of the business <br />Analysis of the market <br />Description of products <br />Organization and management <br />Marketing and sales plan <br />Financial details</blockquote>If you have experience with business plans, most of this should be familiar, but what is SMEAC? If you have a military background, then you may recognize SMEAC as a Five Paragraph Order. The Five Paragraph Order, or some variation, is the format for virtually everything the military does. The initials stand for:<br /><br />Situation<br />Mission<br />Execution<br />Admin and Logistics<br />Command and Signal<br /><br />The armed forces are large bureaucratic organizations, and it is easy to poke fun at them. However, two things that the military does better than most are organizing and planning. For example the basic administrative tasks of military units are divided into four parts: 1) Personnel, 2) Intelligence, 3) Training and Operations, and 4) Supply. Those four groupings are clear, concise and complete. One of the ways that the military accomplishes its organization and planning tasks so well is that it has developed consistent methods and proven them over time. The processes are also simple and easy to remember. For example, when troops need to report enemy intelligence, they simply remember the acronym SALUTE which stands for Size (of the enemy force), Activity (of the enemy), Location (of the enemy), Unit, Time, and Equipment (of the enemy). This is simple and easy to remember. It also provides all of the information necessary.<br /><br />SMEAC is an easy to remember way to organize a plan. It will work with big projects and small projects. It is simple, and it contains all of the elements that would normally be included in a business plan. The following explanation is simplistic, but it will help you to understand the concept.<br /><br /><strong>Situation</strong><br />This section is exactly what it sounds like. It is the section where you will provide an overview of the relevant facts and provide background information. This is also the place where you would explain the business opportunity. <br /><br /><strong>Mission</strong><br />This section is where you will explain <em>what you will do</em>. You do not need to explain exactly how you plan to do it. You will explain how in the next section.<br /><br /><strong>Execution</strong><br />In the previous section, you described what you were planning to do. In this section, you will describe <em>how you will do it</em>. <br /><br /><strong>Admin and Logistics</strong><br />This section will include the details to support what you say you will do in the Mission section. It will tie to how you plan to do it as described in the Execution section.<br /><br /><strong>Command and Signal</strong><br />In this section you will describe your organization.<br /><br />As you can see, the Five Paragraph Order is clear, concise and complete. I’m not suggesting that you use it instead of the business planning formats that you already use for two reasons. The first reason is that if you are already comfortable with a process that works, you should stick with it. (If what you are already doing does not work, that is another matter.) The second reason is that most of the other people that you show your plan will be more familiar with a more traditional format. Even so, it is useful for you to understand this way of organizing your plan. It will help you to write a more complete plan and to write it more quickly. SMEAC is also so simple that you may find that you are able to take the time to plan that you may have done without planning in the past.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-23659269711597829742010-11-23T19:03:00.000-08:002011-11-08T12:47:34.883-08:00Do you need a zero balance account?A zero balance account is an account that usually has a zero or extremely low balance. Businesses use zero balance accounts to manage cash by moving money into the account only when it is going to be needed for a specific purpose. For example, payroll accounts are often zero balance accounts. Businesses will move the funds necessary to cover payroll into the account right before issuing paychecks, and then as employees cash the checks, the balance will drop back to zero. Zero balance accounts let businesses keep cash invested until it is needed. Zero balance accounts also help reduce exposure to fraud because it limits the number of people who have access to other business accounts. <br /><br />Zero balance accounts are useful whenever a business makes routine or predictable payments out of an account. The most common example of this is payroll, but other examples could include rent or vendor payments.<br /><br />So the question is, “Do you need a zero balance account?” The short answer is that you do if a zero balance account will help you put idle cash to work. While it may seem to be a lot of extra effort, many banks that provide cash management services can help you automate the process.<br /><br />There is another reason to consider a zero balance account, and this reason applies to all businesses. It also applies to people that do not own businesses. The reason is fraud. Do you bank or shop online or use a debit card? Have you set up automatic debit transactions with vendors? A zero balance account can protect you. Consumers have a measure of fraud protection when they use credit cards. Business credit cards may not have the same protections. Debit cards may offer fraud protections, but legal protections may be limited. There are also some issues with automatic debit transactions.<br /><br />Here is how a zero balance account could work for you. First establish a new checking account. Use a checking account because savings or money market accounts often limit the number of withdrawals that you can make. Keep your existing checking account. You use the same financial institution where you normally bank. That will make it easy for you to make transfers as necessary, and it will limit your additional recordkeeping. Try to use an account that allows a zero or very low minimum balance and either no fees or small fees. Some financial institutions will combine the balances of all of your accounts for the purposes of calculating minimum balances. You should also choose an account that will let you set up automatic transfers.<br /><br />Once you have the account established, link it to your debit cards and online banking. Use the new account for automated debits and other predictable transactions. If possible, unlink your debit card from your old account. You can set up automatic transactions that will transfer funds from your first account to your new low balance account to cover your routine transactions. When you know that you are going to be using your debit card transfer the funds to cover your anticipated transaction. The idea is to limit your exposure to risk by limiting the amount of money in your account. Another way that it works is that setting up a cash management process that requires regular attention also increases your awareness so that if you are a victim of fraud or theft, then you will be able to respond more quickly.<br /><br />Does a zero balance account makes sense for you or your business?Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-11794362709967184072010-10-29T20:01:00.000-07:002011-11-08T12:59:58.461-08:00IRS Consumer AlertThe IRS does not send taxpayers unsolicited e-mails about their tax accounts, tax situations or personal tax issues. If you receive such an e-mail, most likely it's a scam. IRS impersonation schemes flourish during filing season. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly e-mail.<br />
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Many impersonations are identity theft scams that try to trick victims into revealing personal and financial information that can be used to access their financial accounts. Some e-mail scams contain attachments or links that, when clicked, download malicious code (virus) that infects your computer or direct you to a bogus form or site posing as a genuine IRS form or Web site. <br />
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Some impersonations may be commercial Internet sites that consumers unknowingly visit, thinking they're accessing the genuine IRS Web site, IRS.gov. However, such sites have no connection to the IRS.<br />
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For more information on scams and what to do if you're subject to one, see our <a href="http://www.irs.gov/newsroom/article/0,,id=98129,00.html">Problem Alerts</a> page, <a href="http://www.irs.gov/newsroom/article/0,,id=217794,00.html">Online Scams that Impersonate the IRS</a>, <a href="http://www.irs.gov/newsroom/article/0,,id=155682,00.html">Suspicious e-Mails and Identity Theft</a> and <a href="http://www.irs.gov/privacy/article/0,,id=179820,00.html">How to Report and Identify Phishing, E-mail Scams and Bogus IRS Web Sites</a>.<br />
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Reposted from <a href="http://www.irs.gov/newsroom/article/0,,id=97322,00.html">http://www.irs.gov/newsroom/article/0,,id=97322,00.html</a>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-26303712810979178702010-07-02T09:24:00.000-07:002011-11-07T10:34:11.801-08:00Do you need a board of directors?If you are not a corporation and required to have some sort of board, you may be wondering why anyone would even ask this question. After all, a board of directors represents the shareholders, and if you are a sole proprietor, you are the shareholder. If you are in a partnership, you and the other partners are the shareholders. It makes sense that you don’t need anyone else to look after shareholder (your) interests.<br />
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Or does it?<br />
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<strong>A board is . . .</strong><br />
A board is the governing body of a corporation. It is responsible to the owners of the corporation. It hires and fires the CEO and sometimes other officers. It sets policy and direction. Board members are supposed to be selected on the basis of their skills, experience, knowledge, or some other strength. No single board member is expected to be an expert in everything, but their strengths should complement each other. The board should be a moderating influence when necessary, and it should lead the corporation in new directions when necessary.<br />
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At this point, business owners are saying, “But that is my job!” They are right, and strictly speaking there is no need for a board to represent the owners and to direct management when the owners and management are the same. However, it might be good for business owners to learn the lesson that writers learn when they are first learning their craft. It is not a good idea to try to edit your own work. It is always a good idea to find a source of independent feedback so that you do not end up <em>breathing your own exhaust</em>. This is a term that refers to getting caught up in your own world view so that you lose sight of other ideas or approaches. The sad truth is that we are often not very honest critics. We either give ourselves a pass on opportunities for improvement, or we downplay our strengths. One approach that many businesses use to find an independent voice is to hire consultants. The consultant approach may be good for specific problems. However for ongoing advice, it makes sense to find a more permanent solution. That is where the a board comes into the picture.<br />
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While the role of the board may formally be all about policy and direction, effective boards are also advisory bodies. Wise CEOs take advantage of the accumulated expertise of their companies’ boards. Large partnerships are able to do the same thing because the partners often bring multiple skills and experiences to the firm. Not-for-profit organizations do the same thing. Sole proprietors and small partnerships however, do not typically have boards. Skill, knowledge, and expertise are limited to the owner or the partner or employees hired for certain tasks. What if something is missing? It is beginning to sound like a good idea to have a board or a team of advisors.<br />
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<strong>A board is not . . .</strong><br />
Having a board is not the same as hiring professionals to perform specific functions for your business. Your board will not take the place of your attorney or your CPA. Your board’s risk management advice will not be a substitute for a good relationship with a trusted insurance agent. However, your board may be able to help you in ways that these professionals cannot.<br />
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<strong>How to create a board</strong><br />
Your objective is to find a source of guidance, and you hope to be able to create a team of people willing to help you lead your business. <br />
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This is something more than just a group from the civic club or business networking group, but it does not have to be much more. Your objective is to find a group of people with skills or knowledge that are willing to help contribute to your success. It is easier to do this than you might think. The most anticipated hurdle to overcome is your own thinking that there is not anyone out there that would want to do this, or if there are people that want to do this, then they will charge dearly for their time. Good news. While there are people who make their living as consultants that will charge you dearly, there are just as many people that will help you without sending you a bill. The key is in understanding why they might want to help you build your business. <br />
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People will agree to help you for several reasons. The first is simple self interest. Your success will contribute to the economic growth of the entire local business community. If they help you, and your business grows, then their business will probably grow also. In addition, when you are ask other people for help because of their skills or expertise, they realize that you are likely to reciprocate. Another reason is altruism. Many people, particularly those who have been successful in life, enjoy helping other people become successful. One potent example of this is <a href="http://www.score.org/index.html">SCORE</a> which has 12,400 volunteers with experience in over 600 business skills.. This is a group that shares its accumulated experience with small businesses. They do it simply because they can and because people need the help. <br />
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If you are trying to grow your business, seriously consider forming a board.Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-8753085210139868532010-06-25T12:23:00.000-07:002011-11-07T10:33:30.687-08:00Who is on your team?In the last week or so, I’ve been thinking about teamwork. The Word Cup is big news. Basketball teams are fighting over new talent in the NBA draft. Lance Armstrong is assembling a team for the Tour de France. Teamwork is in the news.<br />
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A well run business is like team. Businesses have owners and managers and workers. In big businesses the various players are pretty well defined. Small businesses tend to be more like pickup games though. Owners and employees do whatever job needs doing. It’s not all that different from showing up at the ball field where one day the team needs a left fielder and another day the team needs a short stop or a catcher. Specific skills may not be as important as simply being there to do the work. That works fine until the team realizes that it is good enough to play in a tournament. That’s when the team captain goes out and tries to recruit ringers. Unfortunately the new players rarely lead the team to victory. No matter what their skill or talent, it is not a substitute for practicing and playing with the team.<br />
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Think about how this applies to business. Many small businesses rely on employees to do whatever needs doing. It is simply too expensive to hire a lot of people, and until the business gets to be a certain size there is not be enough work for full-time employees. The owner usually manages the business, does the bookkeeping and payroll, hires and fires employees, manages compensation, keeps up with rules and regulations, and pays taxes. Since none of those things have to do with making or selling products and turning a profit, the business owner does all those things in his or her spare time. When tournament time comes, and the small business owner is struggling with financial statements and taxes or trying to understand insurance or deferred compensation, he or she goes out to find an expert. Unfortunately, just as with the softball or basketball team, the new player often does not know enough about the business to make a difference.<br />
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The way to victory is sign the players to your team before the tournament. You can do this even if you do not have any money by choosing the right people when you seek advice. When your books got too involved, did you ship them off to the least expensive book keeper you could find? Do you shop for a new accountant every year? Is your insurance agent simply someone you send money to every year? Is your attorney’s business card buried in a stack of cards in your desk? If the answer to any of these questions is, “yes,” then I have a new idea for you.<br />
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Find a single professional that will assemble a team for you. Many professionals recognizing the value of a team approach have developed relationships with other professionals. For example, many CPA’s routinely refer clients to the same team of advisors for legal matters, insurance, investment advice, and even hiring assistance. If you already have an accountant, attorney, book keeper, insurance agent, or investment advisor, ask that person for recommendations. Find out if they routinely refer to each other or if they ever work as a team. If you don’t already work with any of these professionals, then be sure to ask about professional relationships with other service providers when you are hiring them.<br />
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After you have identified a team of professionals that will work together for you, take the time to meet with them to discuss your business and your needs. You might try to meet with them together. If your CPA acts as a business advisor, then he or she may be able to help you do this. Consider a business lunch. The amount of time you spend with each professional will vary. The amount of time that you spend may vary. You may find it desirable to pay for a consultation. The short list below describes some of the things you might want to discuss.<br />
<ul><li>Attorney: You will want to discuss the form of your business and related liabilities and regulations that may affect your business.</li>
<li>Accountant: The topics here include tax planning and structuring your accounting system so that it will provide you useful information. Other topics include cash management and accounting controls. Depending on the form of your businesses, you may also want your accountant to help you figure out how to distribute income.</li>
<li>Bookkeeper: You may not have a separate bookkeeper if your books are simple or if you do not have a large volume of transactions. However if your books are complex or you have a lot of entries, or if you have payroll, then hiring a bookkeeper will be more efficient than doing it yourself and less expensive than having your accountant do the work personally. Ideally your accountant will handle the bookkeeping for you by assigning it to a bookkeeper or junior.</li>
<li>Insurance Agent: The obvious items to discuss with your insurance agent include anything having to do with property or liability insurance for your business. If you or your employees drive for business, then you also need to discuss auto liability coverage. If you are a sole proprietor in a partnership or in some other business where you can be held personally liable, you should also review your personal coverage. If you provide health insurance to your employees, you may have a different agent for the health insurance.</li>
<li>Investment Advisor: The discussion will include retirement planning and related issues. Your CPA will advise you on the tax consequences of various retirement plans and deferred arrangements. Your investment advisor will actually help you set them up for yourself or your employees.</li>
</ul> The objective is to create a team of professionals that know you and work together. Ideally one individual such as your CPA or planner can coordinate the work that they do. If that is not possible, then you can do it yourself. They key is to assemble your players and have them become part of your team early. If you wait until the tournament or the finals, it will be too late. <br />
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<div></div>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-22056658951019772322010-06-16T19:12:00.000-07:002011-11-07T10:36:11.379-08:00Hiring older workersWhat did you think when you read the title of this post? Does it seem like a good idea? Is it a bad idea? How do you know? Ignore all of the obvious stereotypes of older and younger workers and take a look at this quote from an <a href="http://money.cnn.com/2010/06/10/retirement/unretire_dychtwald.fortune/index.htm">interview by Beth Kowitt, on June 11, 2010 in the Fortune Magazine</a> section of the money.cnn.com website.<br />
<blockquote>70% of all money in banks is held by people over 50. That's an example of an industry that's finally coming to realize that a 60-year-old client might actually appreciate dealing with a 60-year-old banker. Other sectors likely to welcome a more mature approach: adventure travel, luxury cars, lifelong learning, or retail.</blockquote>The same article discusses strategies that retirees returning to the workforce should use and suggests:<br />
<blockquote>sell yourself as a mature person. Stress your capacity to make smart decisions, your good judgment in managing people, your contributions in brainstorming and business development, and your lifetime connections. This is your advantage.</blockquote>What do you think? Does that sound like the kind of worker that you want working for you? The proliferation of books such as <em>Encore: Finding Work that Matters in the Second Half of Life</em> by Marc Freedman and <em>Don't Retire, REWIRE!</em> by Jeri Sedlar and Rick Miners suggests that more older workers are either choosing to begin second careers instead of retiring, or they are reentering the workforce after retiring. This trend could mean a supply of experienced and knowledgeable workers for your business. Are you in a business sector that might benefit from more mature and experienced workers? Would your customers be more comfortable with older workers? <br />
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Finding qualified employees is always a challenge. Recognizing and understanding the trends related to more experienced workers can help you.<br />
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<iframe align="left" frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="http://rcm.amazon.com/e/cm?t=helpwithsmall-20&o=1&p=8&l=bpl&asins=1586486349&fc1=000000&IS2=1&lt1=_blank&m=amazon&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr" style="align: left; height: 245px; padding-right: 10px; padding-top: 5px; width: 131px;"></iframe><iframe align="left" frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="http://rcm.amazon.com/e/cm?t=helpwithsmall-20&o=1&p=8&l=bpl&asins=1592576893&fc1=000000&IS2=1&lt1=_blank&m=amazon&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr" style="align: left; height: 245px; padding-right: 10px; padding-top: 5px; width: 131px;"></iframe>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0tag:blogger.com,1999:blog-4435086697296656467.post-88463169231278344732010-06-03T08:19:00.000-07:002011-11-07T10:35:17.528-08:00Tips on self-employment and working from homeIf you have been following employment trends over the last few years, then you are probably aware of two important trends.<br />
<ol><li>People in their 50's, 60's, and even 70’s aren't retiring. They are reinventing. They are taking their skills and changing careers. A few recent books such as <em>Encore: Finding Work that Matters in the Second Half of Life</em> by Marc Freedman make this point. There are also a variety of resources such as <a href="http://boomersnextstep.com/">BoomersNextStep.com</a> that provide services directly to the “Boomer” generation.</li>
<li>More people are working from home. This may be because companies are developing flexible work arrangements. It may be because of increased use of contractors.</li>
</ol>One thing that links these trends is that many of the “encore careers” that boomers are pursuing involve working at home. Whether this is because a successful career has become the springboard for a second career as a consultant or because the boomer has the experience, knowledge, and skill to negotiate a non-traditional working arrangement, many older workers are not going into an office every day.<br />
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This new way of work brings some challenges though, and as Bill Vick from <a href="http://boomersnextstep.com/">BoomersNextStep.com</a> writes in <a href="http://boomersnextstep.com/entrepreneurs/self-employment-and-working-from-home-legal-facts">Self-Employment and Working From Home Legal Facts</a>:<br />
<blockquote>Working from home can be a lot of fun and quite lucrative but there are a lot of things that you need to know from a legal standpoint that will help keep you out of trouble. Things such as managing finances, paying appropriate taxes, and following laws that the IRS has created are all important things that you’ve got to learn.</blockquote>These are just a few of the question you should ask.<br />
<ul><li>Am I an employee or a contractor?</li>
<li>If I am self-employed, how to I handle my bookkeeping and taxes?</li>
<li>What other laws or rules affect me?</li>
</ul>Check out this excellent article from <a href="http://boomersnextstep.com/">BoomersNextStep.com</a> to get started on the answers to these questions and others. <a href="http://boomersnextstep.com/entrepreneurs/self-employment-and-working-from-home-legal-facts">Self-Employment and Working From Home Legal Facts</a><br />
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<iframe align="left" frameborder="0" marginheight="0" marginwidth="0" scrolling="no" src="http://rcm.amazon.com/e/cm?t=helpwithsmall-20&o=1&p=8&l=bpl&asins=1586486349&fc1=000000&IS2=1&lt1=_blank&m=amazon&lc1=0000FF&bc1=000000&bg1=FFFFFF&f=ifr" style="align: left; height: 245px; padding-right: 10px; padding-top: 5px; width: 131px;"></iframe>Chuck Zhttp://www.blogger.com/profile/16324987243137066567noreply@blogger.com0