by Joyce M. Washington, CPA
Plan Your Staffing Now – Before The Post Recession Rebound!
So you got what you think is a bargain when you hired the new accountant… What are you going to do when the economy rebounds and that employee that took a 25-50% paycut, heads for the nearest exit faster than you can say “2 weeks notice”?
Let’s face it, the harsh reality is that there will be a lot of turnover and attrition of good employees. In fact, it’s not IF it will happen but WHEN. So what do you do? My suggestion: prepare yourself by planning for the inevitable. It’s that time of year – budget time! So budget for changes (turnover/new employees). Evaluate the possibility that you may need to outsource a few tasks (telemarketing, social media, accounting/bookkeeping, marketing, etc), Look at what your core products and services are… wherever you can, tighten your belt.
Related info:
Why Outsource Bookkeeping/Accounting?
Raiding My Team
Four Professionals Who Can Help Your Business Succeed
How Hiring A Professional Costs Less Than Doing It Yourself
Why You Should Outsource
by Joyce M. Washington, CPA
About a month ago, I set out to write an e-book about something I know. So I started with the obvious, starting a bookkeeping or accounting business.
Freebie Alert… but you have to give to receive (read post to the end)
Right now it’s rough for pretty much everyone. So many people have decided to start businesses… so why not you?
Starting a bookkeeping business, or any business for that matter, is not rocket science but it does take some planning and it helps a little bit if you have some guidance from someone that has been there and done that. There will be days when you simply don’t feel like it, when you feel like you can’t do it, when you feel like this hair-brained idea that you had won’t work but I’m here to tell you that with perseverance, it can and will work… you just have to stick with it.
Remember, do what you love and everything will naturally fall into place. You will make tons of mistakes along the way but the more you fail, the closer you will be to success so don’t be afraid to fail. Dispel your fears because they aren’t real after all. FEAR is just False Evidence Appear Real.
For the next week, I’m offering a FREE Preview Chapter, my chapter on Marketing.
Want more info about the ebook? Click Here!
Want the entire ebook ~ How To Start A Bookkeeping Business? Click Here!
by Joyce M. Washington, CPA
With all the top ten lists about this and that for Blackberry & Iphone users, I thought I would compile a similar list for G1/Android Users on the go. These are the apps that I use daily and along with GMail & Calendar… pretty much can’t live without because they keep me on track and on task. Hope you find a few that may be helpful and useful to you.
PDANet – I searched high and low for an application that would allow me to get on the Internet using my phone/handset as a modem without messing around with the “root system”. I finally found one that suits the purpose. It’s free for the first 30 days then it’s $29 to purchase. ALTERNATIVE: ProXoid – this one can be a little confusing because you have to “start the tunnel” each time on your laptop before accessing the program on your handset but again…not a bad alternative and it’s f-r-e-e.
Google Voice – I like this one especially if you’re like me and want to have a “super secret” phone number for only friends/family or use it as your “home” number for co-workers and business contacts instead of giving everyone and their brother your cell phone number. One of the slick features about this program (that I love) is that it records and transcribes your messages AND it will text or email it to you. Although it is by invite on, the price is right on this one too…as in, free. ALTERNATIVE: YouMail Visual VoiceMail Plus – if you don’t care about giving out your cell phone number (some people don’t), YouMail offers some of the same features as Google Voice, like voicemail notification via text & email and, for a fee, transcription.
DubMeNow -When you’re traveling and/or out and about, you have enough to care without having to worry about packing your business cards too. DubMeNow (or DUB) is an electronic alternative to carrying around business cards. You can send the person your information from your phone.
GoogleMaps – with the recent upgrade, you really don’t need another app. Google Maps will now give you driving, walking and mass transit directions AND it moves with you (like the various GPS navigators on the market). The only thing it doesn’t do is talk to you but I imagine that will be included in future updates. ALTERNATIVE: Glympse – the addition cool feature with this one is that you can create a profile and share your location with your friends. Both apps are free.
PayPal – if you have a need to take payments on the road, PayPal has a free app that will link your phone to your virtual account. Just that simple. ALTERNATIVES: I’m sure there are also apps for Authorize.Net and others… just do a search in the Market.
MoneyManager – last but not least, while you’re on the road (or at home), you need to keep track of the ins and outs of your money, right? This is a nice app that allows you the categorize your income/expenses, backup and export (to csv file). Packs a lot of punch…
If you have noticed a trend, I like free apps that work *smile*….hey, what can I say… I’m an accountant some have ads on them but what’s a little ad at the top or bottom of your screen going to do? Developers have to make their money too, right?
Inspiration:
Phone Applications for the Business Traveler
Related Posts:
Alternatives to Paper Business Cards
by Joyce M. Washington, CPA
This question seems to come up more often than not – Am I (should I be considered) an independent contractor or an employee? The answer to this question is critical for both the employee (who could lose benefits, such as the right to claim unemployment, and incur higher tax liability) and the employer (who could incur interest and penalties in the case of misclassification).
So how do you define an independent contractor? And what do you do if you believe you have misclassified? Let’s take this one step at a time…and start with the definition of an independent contractor, or at least how the IRS defines it. The IRS uses three broad categories to determine IC status: Behavior Control, Financial Control and Type of Relationship.
“Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means. Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job. The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.”
What do you do? As with most things, the lines can get murky so if are unsure about your work status or think that you may have been misclassified,you can ask the IRS to make the determination by filing a Form SS-8 – Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer’s Supplemental Tax Guide, Publication 1779, Independent Contractor or Employee, and Publication 1976, Do You Qualify for Relief under Section 530? These publications and Form SS-8 are available on the IRS Web site or by calling the IRS at 800-829-3676 (800-TAX-FORM).
Related:
Employee vs. Independent Contractor – Ten Tips for Business Owners
Publication 1779
Publication 15-A
Form SS-8
Publication 1976
Disclaimer: This blog post/article is not meant as tax advice. Please consult a tax professional regarding your specific situation.
by Joyce M. Washington, CPA
Before delving into the topic, I think it would be helpful to actually define what is a “sole proprietorship”. It is a business represented by a single individual without benefit of a separate legal entity (for example, corporation).
This business “entity” type tends to be somewhat popular because of the ease in which it can be “formed”…
- Determine if you will use your name (example John Doe) or a fictitious one (JD Photography).
- If you will be using a fictitious one, you will need to register it with your state (or city, if required) by filing a “DBA/Doing Business As” or Tradename form.
- Apply for a FEIN (Federal Employer Identification Number) – go to www.irs.gov. Not necessarily a requirement per se but your accountant and/or tax preparer will thank you later. (If you are a contractor of some sort, you will use this number when filling out W4 Forms).
- Open a separate bank account. Again not necessary but extremely helpful when managing your company finances…your accountant/tax preparer will thank you.
- Acquire any necessary licenses. If your business is one that requires it, make sure you are compliant from the beginning (for example, hair salon requires cosmetology licensing).
As with any business entity type, you should review the pros & cons to decide if that is what is right for you and your business. I thought about going into the pros & cons for this particular business type but decided against it. Instead I have provided a few related topic links that should cover that base pretty accurately.
Disclaimer: I am not an attorney nor is this to be taken as tax or accounting advice. Please seek the advice of a professional for specific insight on your particular business situation.
topic suggested by Malik Alex: Painter & Aspiring Gallery Owner
Related Topics:
Why You Should Never Operate Any Business As a Sole Proprietor
Sole Proprietorship: The Right Business Structure?
