Financial Empowerment Seminars

A  Financially based 4 week Workshop Series

Facilitated by: John Butruccio founder True Choice Coaching

Please join us for a unique, interactive workshop and discover how the power of personal development can influence your financial state of mind. We will focus on the law of attraction, at a deep personal level, by tapping into your own personal power to create new habits that will inspire increased self awareness, create a higher level of self esteem and unwavering self confidence. Your personal and professional relationships will improve immensely and often immediately once you open yourself up to new possibilities that will influence your financial future. Once liberated from our life long self defeating thinking habits around money we can then move forward with a sense of abundance and well being.

Hosted and sponsored by:  Debbie Moulton

285 Calef Highway, Suite 12A Epping, NH 03042
Thursday evenings, April 7, 14, 21 and 28.  6:00 p.m. to 8:00 p.m. 

Attendance fee is $120.00 per person. Refreshments will be provided.

Space is limited…Register soon.  John Butruccio @  C 978-265-7004

John Butruccio is a professional personal development life coach.

Bring plenty of Business Cards for networking and a note pad for taking notes.

5 Ways to Trim your Overhead Expenses

In these challenging times, every penny counts. One way to increase your business profitability is to lower your expenses. Even if your income stays the same, having less deductions will raise your net profit. Take a look at your most recent Profit and Loss report and look for expenses that could be trimmed. Here are a few examples:

1. Internet and Phone Service – Check your current provider for the plans they offer. You may be able to save money with a bundle offer for internet, phone and/or cable. Call your Internet provider for their current plans and have them review your account to see if there is a cheaper option. Does another provider offer a better rate worth switching to? Review your cell phone usage against the allowed minutes in your plan. Perhaps you would save money by switching to a lower-minute plan. Are you consistently using your data plan or text message plan? If not, consider eliminating them or switching to a lower volume plan. I saved $30 per month by canceling the data plan on my phone and instead syncing my calendar and contacts with a cable to my computer. The bonus is that my phone battery now lasts 3 times as long.

2. Electricity – Does your electric bill fluctuate widely from month to month? What did you do differently in the lower months? Perhaps you could replace some light bulbs with more energy efficient models, make a more conscious effort to turn off computers and printers when they are not in use, or set the thermostat one degree cooler in winter or higher in summer. Your electric utility may even offer rebates or other incentives for purchasing energy-efficient lamps. If you have appliances that need to be replaced, consider more energy efficient models. Start with a do-it-yourself energy audit by following the suggestions at http://www.energysavers.gov. An audit will show where you are losing energy and how efficient your heating and cooling systems are.

3. Transportation costs – How much are you spending on traveling to your clients? Are remote options available? There are many options now for remote teleconferences, webinars, and video conferencing. Scanners are easily available to deliver documents right to your client’s computer. You can even have your data hosted on the web to allow access from anywhere and from multiple people.

4. Bank fees – Review how much you are paying in unnecessary bank fees such as over limit fees, insufficient funds fees and overdraft charges. Paying more attention to your bank balance and what checks are outstanding can eliminate these fees and save you significant amounts of money. Take regular cash withdrawals less often directly at your bank to save on ATM fees. Some simple planning of your cash needs can save you quite a bit of money on bank fees, as well as eliminate overdraft charges.

5. Refinance debt – Interest and finance charges make up a significant percentage of many small business expenses. Review current interest rates and research if you can refinance your business debt to a lower rate. If you have business credit cards, transfer your balances to a card with a lower interest rate. Be sure to factor in any annual fee when comparing your rate. Home equity loans are usually the least expensive financing option, since the loan is backed by your home. If you are comfortable with this option, a home equity line of credit can provide a very cost effective buffer for slow times in your business.

6 Early Warning Signs of Customer Payment Problems -- & What to Do

In this current economic downturn, many companies are experiencing significant payment delays from their customers and clients, which then cause delays on their part paying their vendors, and the cycle continues. It’s important, especially now, to stay on top of your accounts receivable, and to stay in contact with your customers. They are more likely to pay you ahead of others if you have a solid relationship and don’t allow them to forget their outstanding balance.

If you see any of these signs, act before it’s too late:

1. Broken promises – 2 instances. Your customer has promised twice to pay and you still have not received payment. Accept one promise. The second time, ask in a direct, friendly way why the payment is late and exactly when you'll be paid. You may also notice other delays which should be counted as one instance, including a bounced check or inability to reach your contact.

2. Change in personnel. Your lack of payment is blamed on personnel shifts and your original contact is no longer available. Always assume the worst. Call daily to attempt to reach the right person, and set a firm schedule for when they will call you back. No return call should be considered a broken promise.

3. Any banking change. If nonpayment is blamed on changing banks, ask for the name of the bank and bank officer. Call the bank and confirm that they have actually opened an account. Even with a new bank, payments can be processed quickly, so excuses of this nature are a red flag.

4. Unusual disputes (stalls). Every time you call there is a new excuse. For instance: “The check is in the mail” or “We are having a problem with the order” (after several months). Probe and question. If the check is in the mail, request a date mailed and a check number. Volunteer to follow-up with their bank. If the customer has a valid problem with their order, their complaint is usually prompt and detailed. The more vague a complaint, the more suspicious it should be. Ask: “Why haven't I seen something on this in writing?"

5. Intimidation. Debtors sensing a non-pro calling may be rude to deter future calls. Ignore it. Stick to the business at hand: nonpayment. Keep probing. “Will you pay? when? etc.” Try humor (“Get up on the wrong side of the bed?”). If it fails, the intimidation is deliberate. Ask for a supervisor or manager.

6. Change in payment pattern. A customer who normally pays you within the month is now taking 60 days to pay, and only after you call. Call them and compassionately discuss the situation. Tell them what a valued customer they are and how wonderful they have always been about paying you on time. If there’s no valid temporary situation, this is another red flag.


What to do when it’s already too late
Unfortunately, after several months have passed, it becomes extremely difficult to collect anything at all. Avoid making unrealistic demands and try to work with the customer if you can. Your goal is to keep the lines of communication open. Why lose money, and possibly a good customer, due to a customer's temporary, unexpected reversal?

Focus on keeping a regular flow of cash coming in, by setting up a realistic payment schedule as follows:

1. Get a partial payment up front: “Your total outstanding balance is $600. How short are you of paying in full?” It's hard for people to say they're short the full amount. Get a commitment for a payment up front and ask how much they can pay per month after that. By getting a payment right away, you have won half the battle and have started the cash flow moving again.

2. Suggest monthly payments. After the initial down-payment, set regular monthly payment amounts that will pay off the balance in a reasonable period of time. Set a limit for how many months the payments will be spread out. Suggest an amount, but have a counter-offer ready. Watch carefully that payments are paid on time.

3. Charge interest. You should definitely charge interest on balances owed to you longer than 30 days. Typical interest is 1.5% to 2% per month. People pay back debts accruing interest faster than no-interest debts. You may also charge a flat late fee for missed payment dates.

4. Suspend services. Don’t provide additional services to a delinquent client. You’re just adding more to the amount you will be unable to collect. For a client that is making payments on current services, set up a payment plan for them with an amount that covers the current services plus an amount towards the back balance. Set a limit for the maximum balance you will allow and suspend services if it reaches that point.

5. Collection Agencies. If all else fails, the account can be turned over to a collection agency. They will call and send letters on your behalf to collect the debt. This is usually a last resort, however, since you will most likely not be able to do any further business with this client. Collection fees typically cost about 30% of the debt collected. Some money is certainly better than no money, but again a last resort.

This information is based on an article by attorney Donald B. Kramer, J.D., president, Kramer & Frank, P.C., St. Louis, MO, a 23-attorney collections law firm, and author of Mastering Collections (AIPB, 2009).

Get Organized for Tax Time

Tax time comes once a year, but often the records build up.  Here are some tips for getting your records in order so that you don’t pay more than "your fair share" to the IRS.

1. If you have employees, finish up all of your quarterly tax forms by January 31st. The Quarter 4 941 form, NH Quarterly Wage Report, and the annual 940 are all forms that need to be filed along with a check for the liabilities owed if you have not submitted them online or through your bank.  You also need to send W2’s to any employee who worked for you last year, and a 1099-MISC to any unincorporated subcontractor that you paid a total of more than $600 during the year.

2. Subtotal your income and expenses by the categories on your tax return. For example, if you are a sole proprietor, Schedule C will request totals for Advertising, Commissions & Fees, Contract Labor, Legal & Professional Services, and Supplies.  If you are using software such as QuickBooks and are caught up with your data entry, print a Profit and Loss Summary report and review the categories.  Match them up with the appropriate Schedule C categories.  You can also run the Income Tax Preparation report to set up tax account mappings for all of your accounts.  Then print the Income Tax Summary and you have a report subtotaled by each tax category.

3. Some categories do not have a direct correlation between money spent and what is deductible. Automobile expenses are a good example of this.  If you are claiming the standard mileage deduction, which was 50 cents per mile for 2010, then what you spent for gas and repairs will differ from the Automobile Expenses you claim on your tax return.  Whether you claim Actual Expenses or Standard Mileage however, you still need to keep mileage records of your total and business miles.  You can also claim parking and tolls in addition to either method.

4. If you are not using an automated software package, sort your receipts by category and total each category. Bring the totals to your tax preparer or CPA.  Your tax preparer does not want to see your pile of receipts, and does not need to double-check your totals.  It will just cost you more (and often a lot more) to have your CPA total your receipts and will often delay your return process (and your refund!)  Ultimately, your tax return is your responsibility and you will incur the penalty if your tax return contains inaccurate or misleading information.  Bring organized totals to your tax preparer, but keep your receipts in case the IRS questions you later.

5. Consider e-filing your taxes. A growing proportion of taxpayers are e-filing their returns, and it is fast and easy.  You can e-file at any professional tax preparer, through online software like TurboTax, and even for free through the IRS Free File program.  You can get your refund direct deposited to your bank account in as little as 10 days.  Click here for more information on IRS Free File: http://www.irs.gov/efile/article/0,,id=118986,00.html

Year End Quick Tip

With less than a week left in the year, there are still a few things you can do that will make an impact on your taxes.

Donations to charity up through the end of the year will be deductible on your Schedule A if you itemize. Ask the organization if they are a qualified organization, or check Publication 78 at irs.gov by clicking here.

Contributions to your 401k up through the end of the year will lower your taxable income. For IRA’s, you have until April 15th to contribute. You may get a retirement credit for your IRA contribution, but it will not  reduce your taxable income.

If you have open bills, you can pay them this week to lower your net profit.
Be sure the expense has already been incurred and is not a future cost.

Lastly, some self-employed people can control when they get paid. Properly deferring income until next year can lower your tax liability for this year. Talk to your tax advisor or CPA about the proper way to defer income. The IRS web site, at www.IRS.gov also has a wealth of information.

And as always, be sure to keep good records!
A Step Up Bookkeeping Services wishes you a prosperous 2011!

Your year-end "To Do" List

It’s almost the end of the year, and although the holidays are coming, there are a few tasks you need to address before year end. Getting your financials in order now will start you off right for the New Year. A Step Up wishes you a very merry holiday season and a prosperous 2011.

1. Invoice your clients for all outstanding time and expenses. You want to be sure that invoices are sent for all work done during the year, and many of your customers will want to pay you for this work now to lower their tax liability. Make it easy for them to do so!

2. Review your open receivables and determine if any should be sent to an outside collection agency for assistance or if they are un-collectible. If you are on an accrual basis, you can write these off as bad debts and lower your business profit totals.

3. Reconcile all bank accounts, credit card accounts and loan accounts. You need accurate balances to make informed decisions for the future.

4. Prepare a budget for next year. Review this year’s reports and set a plan for realistic growth next year. What income categories were profitable? What expenses can be trimmed? Set a plan for how you will increase revenue and lower expenses in the coming months.

5. Double-check all employee addresses and social security numbers. Remind employees to submit new W4 forms if their tax situation has changed, or if they want to retain their federal ‘exempt’ status.

6. Get address and social security numbers for all 1099 contractors. Send W9 forms to obtain this information if needed. Review all names, addresses and tax ID information as well as the categories of payments made for accuracy.

7. Meet with your CPA to review your preliminary totals. There are things you can do now to reduce your business tax liability, such as contributing to a retirement plan or paying employee bonuses, but they often must be done before December 31st. It also may not be a good idea to make a large equipment purchase at this time. Depreciation deductions are not as favorable if the majority of the year’s purchases were made in the last quarter. Talk to your CPA about your tax strategy for this year. Of course, you will want to have your records in order and caught up to reap the most benefits from your meeting.

QuickBooks also has a ‘Year End Checklist’ that you can print out and check off items as you complete them. Select ‘Year-End Guide’ from the ‘Help’ menu in QuickBooks. You can print the checklist, or save your checked items right within your data file.

A Step Up Bookkeeping Services is available to perform a wide variety of your bookkeeping and payroll tasks, at a reasonable cost. We also offer QuickBooks setup and training services. Call today for a free no obligation consultation-603.679.2022

SMALL BUSINESS DO'S AND DON'TS

Charge your worth  First you need to do your research to see what your competition charges. Want more on Price Setting Process. Based on that knowledge, charge what your products and/or services are worth. Sometimes small business owners feel a little self-conscious about their fees; never compromise your value in order to get business.

Do:  Communicate the value of your services.

Don’t:  Be apologetic and tentative when talking about fees.

Be visible   Most small business owners are not as good at public relations as they are with their business specialty. But that is no reason to be a hermit.  It may feel awkward, however, you need to get out and be seen and heard. Attend community functions, meet your customers, and spend time socializing; the more you interact with others, the greater your networking opportunities. Remember, everyone is a potential customer. Find Local Happenings

Do:  Make appearances and talk about what you do.

Don’t:  Be pushy and overbearing.

Be Helpful  One account or customer can make or break a small business. By keeping the business "Golden Rule" you will be able to capture the big sales with the little sales. There is something about knowing you have had a positive effect on those you do business with everyday.

Do:  Make each interaction with customers the best one they have had.

Don’t:  Be arrogant and unresponsive.

Hire an accountant or bookkeeper to help with your finances

More than 50% of small businesses fail, and the majority of those failures can be attributed to poor financial management. Why draw yourself away from what you do best: producing your product? You may think that you will be saving money by doing your own accounting, but the truth is that a good accountant will save you money, and possibly your business, in the end.

Do:  Find someone who will do more than just keep your books; find someone who knows how to make your business more profitable.

Don’t:  Cut corners with your business bookkeeping.

 

Have a marketing plan  Remember Field of Dreams? If you build it, they will come. When it comes to your business you have more in common with Costner’s character than you might think; If you publicize, they will purchase. You need to get the word out in order to get customers through your door. Without customers, you won’t make any money.  Assign yourself a marketing budget and plan for your future. Want Help with Marketing Plan.

Do: Research marketing methods that work for your particular business niche.

Don’t: Spend lots of money on an unproven marketing technique.

A Step Up Bookkeeping Services is available to perform your bookkeeping tasks.  Call today for a free no obligation consultation.