Tag: Money (27 articles found) - Clear Search


Giving Out Year-End Bonuses? My Tips to Keep in Mind

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"New Year's Day is every man's birthday."  -Charles Lamb

Chances are, if you're just now thinking about bonuses, it might be too late. (But with Amazon, I guess there is still hope). Yet with 2020 on the horizon, you can begin with 2020's holiday gifts in mind. It really is important to factor year-end bonuses at the beginning of the year so that you can budget and plan accordingly. In addition, you'll want to consider questions such as:

  • Who on your team will receive bonuses?
  • Will the bonuses be the same across-the-board or differ based on merit?
  • How will you present the bonuses to your employees?

If you don't have a solid system for year-end bonuses, your budget might take a hit.

Budget Accordingly

When you think of budgeting the bonus, don't just think in terms of cash bonuses. Read More...


An Easy Fix - Raise Your Prices

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"You are a product of your environment. So choose the environment that will best develop you toward your objective. Analyze your life in terms of its environment. Are the things around you helping you toward success - or are they holding you back?" - W. Clement Stone

I take a look around the small business world sometimes, and I get a little sad.

Because it's heartbreaking to watch so many small businesses go out of business or not bring home enough bacon simply because they get trapped into thinking about their pricing in the wrong way.

When you differentiate yourself based on price, you simply cannot provide value. You end up competing on the wrong playing field.

Sure -- while price competitors have been in operation since the beginning of time, it's important to understand that if YOU want to build a sustainable, scalable and one day SALE-able business, a core foundational piece of that puzzle is that you must be charging enough for your services.

You see, most business people under-price their products and services. It's my experience that price either isn't or doesn't have to be a very important factor in a consumer's decision or the success of a business. Read More...


Potential Tax Problems For Small Businesses To Fix Before Year-End

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"No man was ever wise by chance." -Lucius Annaeus Seneca

Sometimes there are things you can fix, and sometimes there are the business problems that you just have to take on the chin.

But golly ... the worst are those that are self-imposed and done in ignorance.

Which is what we're here to help you fix, before it's too late.

Year-end is a great time, simply because of the impending deadline of 12/31 to do something that will serve to fix things for 2019.

Here are a couple examples of the sort of things we should fix, if they apply to you, specifically if your business is set up as an S Corp (or is an LLC operating as such).

An S Corp is a pass-through entity. That means the income and losses of the company pass through to your personal return. The entity itself files a tax return but doesn't actually pay tax (except a state tax in a couple of states) Read More...


How Can We Be Thankful

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Right in the middle of the bloody depths of civil war, President Lincoln proclaimed the last Thursday of November as a national day of Thanksgiving which should take place every year.

His entire Thanksgiving proclamation (written by his Secretary of State, William Seward) is worth taking in, or even reading aloud, but the opening is particularly powerful:

"The year that is drawing toward its close has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added ..."

I believe Lincoln understood a fundamental truth in the human soul: how we choose to see our circumstances often dictates the state of our hearts -- and, thereby, our future circumstances. After all, if a war-torn nation can turn its eyes upward -- so can you, your employees, and your family.

You should sit in my office with me sometime, watch the procession of "wealthy" and "poor" clients -- Some businesses with 7-8 figures in the *bank*, and those going underwater. You would see what I get reminded of regularly: Sometimes my "wealthiest" clients are the most impoverished ... and those without many zeroes in their accounts are flat-out rich. Read More...


The "Profit First" Framework for Real Estate Businesses

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"Money is a terrible master but an excellent servant." -P.T. Barnum

Life is all about prioritization. Businesses are no different.

Where does profit fall in your list of priorities? Obviously, in the realm of cash flow, you are sparsing out revenue to various functions within your business: COGS (Cost Of Goods Sold), payroll, etc.

But the profit first mentality says to do just that -- prioritize profit as the number one item on your list. AND THEN move onto other areas of your business that need cash flow. This is the "pay yourself first" perspective -- many utilize this tactic to propel their personal finances in a favorable direction. But in a business sense, this concept requires a few shifts.

  1. The Bank Accounts

Setting up your bank accounts accordingly is crucial for profit first to succeed. The order is as follows: Read More...


IRS Scams Targeting Those Needing Tax Debt Help

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"The worst kind of lying I've ever done is keeping things from people." -Elijah Wood

With the October 15th deadline nearing (for extended personal returns), there is almost always an uptick in scammer activity, especially seeking out those who are facing debts to the IRS. Yes, criminals use databases too.

Let's start with email...

Take note of these email subject headlines:

"Automatic Income Tax Reminder"

Or

"Electronic Tax Reminder"

If you see an email with either of those subject lines, or something even close to resembling the like, PLEASE DO NOT CLICK. These emails can contain faulty information from scammers looking for personal information so that they can access your Money. Read More...


Preserving Your Digital Estate

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"A man who does not plan long ahead will find trouble at his door." -Confucius

This isn't particularly a "fun" topic, but again, this day and age calls for it. If you have a lot of important business and data online (most of us do) let's ensure that nothing is ever lost.

Define "Digital Asset"

Before we go any further, the following could be considered digital assets in your name:

  1. Emails
  2. Social Media Sites
  3. Blogs
  4. Financial Accounts
  5. Music Files
  6. Photographs
  7. Videos
  8. Customer Database
  9. Cryptocurrency

The list goes on, but these are a few common personal online assets. Read More...


Three Overlooked Ways To Control Costs In Your Business

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"Never spend your Money before you have it." -Thomas Jefferson

Profitable revenue is the only thing that will grow your business.

Are there other elements that fuel that process? Absolutely. But you must control costs so that you can forecast and attain PROFIT for the good of your business.

Some people will see this as greedy or profiteering, but a lot of those people just don't know what it takes to run a business. For the rest of us, it's important to keep one another in check with various systems in place to control costs and maintain profitability.

Here are three ideas that often go overlooked -- and if you have questions about any item, please reach out and let me know. I'm available to discuss ways to help you save (and therefore gain).

Annual Renegotiation

Depending on your business model, setting a yearly meeting with vendors to renegotiate terms and payment can be a great first step to controlling costs for your business.

Before setting meetings in stone, you should probably follow a guiding principle in business: whenever possible don't set a contract any longer than a year. This might seem obvious, but many businesses think this longer-term strategy will help them lower costs. That is not the case. Read More...


Cash vs. Accrual Accounting: Two Main Differences For Businesses To Consider

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"Accounting is the language of business." -Warren Buffett

Let's look at a few differentiators between the two and how each could help, or hurt, your business moving forward.

As always, please let me know if you or your accounting team has any questions on this topic. I would love to help in any way I can, or provide resources for further understanding. My goal is for your business to succeed!

Timing

The key difference between cash and accrual accounting is largely due to timing.

For instance, cash accounting considers revenue right when the cash is received, and right when you pay expenses. Many businesses opt for cash accounting because it's easier to keep track of -- it's a simple method especially for entry-level accountants to maintain.

On the other hand, accrual-based accounting keeps track of earnings as opposed to what's actually been received. Although cash accounting is simple, accrual is more popular because of this timing: businesses consider revenue upon "project completion" instead of waiting to receive the Money. Read More...


Are You Safe From the Financial Storm?

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Whether it's the rumors of recession (or worse), continued chaos in the political world (and still over a year away from elections -- yikes), increasing cultural division, or something more local, it's a mess out there.

Behm's Key Reminders to Keep Safe from the Financial Storm:

1) What you choose to "ingest" will greatly impact your state of mind.

This will always be the case. Truly -- the media outlets and websites do better (financially) when there is chaos.

That means that there is a very real (monetary) incentive for them to highlight turmoil. If you're wise, you steer clear. I'm not suggesting that you stick your head in the sand, just ... use a strong filter.

2) The only thing certain about the stock market is that it's volatile.

With all that talk of negative yield curves and spooked markets, it's hard to feel confident about long-term outlooks. Which might mean that the best "investment" these days may be YOURSELF ... and your business.

Which leads to...

3) The only thing you can truly control is yourself. The economy, the local market for your goods and services, your retirement -- much of it is out of your hands, in a very real sense.

That said, we met with business owners and clients last week who were taking positive action. With our advice, just a few small tweaks can realize six figures of true savings over the course of years.

Let me know if I can do the same for you.

Until then...

BE THE ROAR not the echo®

Warmly,

Janet Behm
Utah Real Estate Accountants
(801) 278-2700