“A lot of talented actors still have to pay their bills.” - Mark Wahlberg

Sometimes it seems like bills come through the door as much as customers do … And knowing which bills to pay in which specific order can be difficult. 

And just like some customers are worth more than others to your small business, some bills need quicker attention than others as well. You put things in priority order for your company every day. You should do the same for your expenses. 

We’ve got some thoughts on how to do that. 

Which bills to pay first and why

You’ve heard about keeping the lights on? It’s true. Whether your business relies on the internet, machinery, handwashing, or heating, your utility bills have to be near the top – if not always first – on your pay list.

You also need a place to work – there’s no debate if you arrive at the office one morning and find the door padlocked. Pay your rent. 

<
Read More...

“There is no victory at bargain basement prices.” – Dwight Eisenhower

Prices are on the rise everywhere right now. What about yours? 

From just a few pennies to outright sticker shock, hiking prices is one of the quickest paths to losing customers. But you’ve got ends to make meet, too. 

Our inflation series continues with one of the most pressing problems for businesses today: How much you need to increase your pricing models – and what to think about before you do. 

Worry and response

Current inflation is 8.6% year over year, a seemingly endless upward direction that worries most businesses. Almost nine out of 10 have told surveys that they’re also already seeing the hit in higher expenses such as supplies and services, some by as much as 50%. Throw in employees probably wanting above-average raises and you’ve got a compound problem. 
Read More...

"A wise person should have Money in their head, but not in their heart." – Jonathan Swift

Your dreams of being the boss aside, your business isn’t going to last long if you don’t handle your Money right. If your business is a partnership, you have special considerations – such as how your business is structured and (much, much more importantly) how everybody gets paid in business partnerships.

It’s key to set up your company so everyone knows how the Money flows. 

Basics of the Money roadmap

First, let’s pin down what kind of partnership you have. The type of partnership can influence how the Money flows within the company. Bear this in mind whether you’re an established company or just considering your first business partnership. 

Three common arrangements for business partnerships are: 

Read More...

“The only difference between reality and fiction is that fiction needs to be credible.” - Mark Twain 

You’ve probably got that friend who talks non-stop about the world of non-fungible tokens (NFTs) and all the wacky-named cryptocurrency out there. 

And of course, they’re dying to tell you over and over any time you hang out how you can make a fortune overnight (too bad your friend isn’t virtual) … 

Still, it’s hard not to wonder what it’s all about. 

Can you actually make a fortune? Maybe. Others seem to have done it. But what they’ve also made is a heap of tax complications for themselves with (so far) little official guidance on how to report some of these big payoffs.

Well, here’s what we know so far from the IRS.

Significant ether

Read More...

“To contract new debts is not the way to pay old ones.” - George Washington

In the age of virtual currency, rising inflation, and online shopping, helping your teenager get their feet under them when it comes to Money seems like an absolute necessity. 

So, wouldn’t it be great if you could pry your teen from perma-scrolling TikTok and Snapchat long enough to teach them a few things about Money? However, you might be surprised to find that one great Money education tool for them (or anyone) is having a credit card.

Yep, you heard that right. Giving your teen a credit card could really help them learn a few things about Money and managing it.

Think about it: You have to handle paying the balance and watch your spending when it seems effortless (at least until the bill arrives). You learn the ins and outs of interest, credit scores, and paying off a tab over time. It’d be tough to find a better Money tea
Read More...

Previously, we discussed retirement accounts in general and how to turn them into self-directed accounts. Once you’ve gone that far, you’re ready to invest. You can use those funds in the exact same way you’d use your personal cash to do any deal. There really is no limit to the kinds of investments you can make. However, “how” you make those investments IS a big deal and can get you into trouble.

NOTE: Self-direction is an advanced real estate investing technique with a lot of nuances. This blog is meant as general information and not legal, tax or investing advice. You will certainly need more education and advice to truly understand this amazing technique.

If you do what is called a “prohibited transaction” you could face the possibility of incurring penalties, which for an IRA could be add up to the entire amount of your IRA. So this is a very important topic. And not one that can fully be explained in a short blog. This is meant to bring your attention to the issue. I always recommend seeking legal counsel if you are unsure about a certain investment.

At it’s core, the IRS does not want you to unlawfully make a contribution to or take a di
Read More...

As A Real Estate Investor, This Is  Where The Rubber Meets The Road

Usually, keeping track of numbers is tedious.

Check it out! What are the bene’s that make this task more attractive than the usual alternative…”Oh Geez. I’ve got a closing on Monday and I need financials.”

Your business obviously makes and spends Money. The pluses and minuses add up (you hope) to being able to stay in business, and a look at the books tells you if your business is doing okay or headed for trouble.

What are your books telling YOU?

In our experience, it’s often the company’s financial system (or lack thereof) that makes the answer easy to discover or downright difficult.

Have you looked at your own business’s financial system lately? Would you know how to read between the lines to interpret what you see there?

Becaus
Read More...

“Luck is what you have left over after you give 100 percent.” - Langston Coleman

Prior to the economic fallout from 2020’s happenings, the typical American small business only had 28 days’ worth of cash reserves on hand.

Meaning, the average small business in this country couldn’t survive for a full month if revenue were suddenly turned off. As a result, Congress had to prop up small businesses through programs such as the EIDL and PPP loans that you’re sick of hearing about by now.

As the economy rebounds strongly, it’s a good time to set aside a business emergency fund for your business to tide you over during the next period of economic upheaval. This isn’t doom and gloom thinking, it’s simply the reality of the business cycle: There will be another recession at some unknown point in the future.

You Need To Know How Much Is Enough
In many ways, your business eme
Read More...

Some things are obviously a sales pitch and a come-on. Unsuspecting taxpayers get hooked into this tantalizing offer every year.

Almost no one qualifies for this program from the IRS. By-the-way, it is unethical for a licensed tax preparer to make this offer.

When I hear commercials on TV or on the radio that promise specific results to people who owe Money to the IRS, it really bothers me.

One of the most pervasive advertising schemes you’ll hear repeated over and over again is about only paying “pennies on the dollar” to the IRS.

The reason this one rubs me the wrong way in particular is quite simple: It doesn’t exist.

If you’ve heard this program referenced and have been curious about it, it’s time to set the record straight.

The Truth About “Pennies On The Dollar” Read More...