The tax planning season is just around the corner. Most small businesses are more focused on the end of summer and gearing up for the fall season. What they should focus on is getting their ducks in a row for the year end and beyond. Here's a reason why small business owners should avoid the SALY (Same As Last Year) and start planning now.
Showing posts with label Business Planning. Show all posts
Showing posts with label Business Planning. Show all posts
Wednesday, August 20, 2014
Monday, November 14, 2011
A Bonus for Small Biz
Thanks to the IRS, small businesses can deduct the cost of bonuses they pay to employees even if they don't know which employees will receive a year-end bonus. Listen here for details:
The Tech Accountant
The Tech Accountant
Friday, September 09, 2011
Summer is Over - Time for Reports Cards and Football
The summer is almost over, and school is back in session. If you have kids, you’ve probably already met the teachers. You may have even enjoyed college football and NFL starting recently.
It’s probably been a long time since you’ve sat in a classroom yourself. But school is never out if you’re looking to make the most of your money in today’s challenging economy.
Here are some classes I'm considering teaching this fall to keep more of your hard earned money in your pocket. Let me know what you think:
• Math 1040: Where are tax rates headed?
• History 2010: Lessons from last year’s mistakes?
• Social Studies 463: Write off meals and entertainment
• Chemistry 162: Is there a “secret formula” for paying less?
• Anatomy 213: What’s the best strategy for healthcare benefits?
If you want to keep the most of what you make, you can’t wait ‘til finals or game day for answers. You need to study now and have a playbook ready just like the football players and coaches. Putting tax-wise ideas and strategies in place today could help avoid an ugly surprise when “Report Cards” and the "Tax Playoffs" come due April 15!
The Tech Accountant
It’s probably been a long time since you’ve sat in a classroom yourself. But school is never out if you’re looking to make the most of your money in today’s challenging economy.
Here are some classes I'm considering teaching this fall to keep more of your hard earned money in your pocket. Let me know what you think:
• Math 1040: Where are tax rates headed?
• History 2010: Lessons from last year’s mistakes?
• Social Studies 463: Write off meals and entertainment
• Chemistry 162: Is there a “secret formula” for paying less?
• Anatomy 213: What’s the best strategy for healthcare benefits?
If you want to keep the most of what you make, you can’t wait ‘til finals or game day for answers. You need to study now and have a playbook ready just like the football players and coaches. Putting tax-wise ideas and strategies in place today could help avoid an ugly surprise when “Report Cards” and the "Tax Playoffs" come due April 15!
The Tech Accountant
Tuesday, August 30, 2011
Know the Rules For Employees and IC's
There is a difference when terminating and employee versus and independent contractor (IC). Better know the rules.
The Tech Accountant
Travelers RMplusonline
The Tech Accountant
Travelers RMplusonline
Thursday, July 21, 2011
Let Technology Wear Some of Your Hats
Small business owners and entrepreneurs all know that starting and operating your own business is a rewarding but tough experience. Typically when a small business is in the start-up or growth stage, the owners will attempt to wear all the hats from being the sales manager to the bookkeeper. Although this will give a small business owner a wealth of experience in operations and processes, could their time be better spent doing what they do best?
Many small business owners want to know how they can break away from doing the back office functions and most times the solution is to hire someone to do the work or outsource. Sometimes when this solution is implemented, the costs are more than the benefit and the small business owner is back at square one.
The new way to get operational tasks done is to use technology in conjunction with and employee or contractor. This way a small business owner can continue to the be the backbone of the economy and cut their operational and overhead costs considerably.
Let's take marketing and public relations for example. In the past small business owners could not compete with their larger counterparts due to the high cost of websites, customer relationship management and public relations companies, tv, and radio, etc. Nowadays a small business owner can build their own website (or outsource) with WordPress, use social media sites and apps like Facebook and Twitter for public relations and CRM, broadcast themselves on YouTube, and podcasts, and get paid instantly with PayPal, Google Checkout and others.
These are just a few ways technology can help a small business owner cut costs and focus on what they do best. Feel free to post your ideas too.
The Tech Accountant
Many small business owners want to know how they can break away from doing the back office functions and most times the solution is to hire someone to do the work or outsource. Sometimes when this solution is implemented, the costs are more than the benefit and the small business owner is back at square one.
The new way to get operational tasks done is to use technology in conjunction with and employee or contractor. This way a small business owner can continue to the be the backbone of the economy and cut their operational and overhead costs considerably.
Let's take marketing and public relations for example. In the past small business owners could not compete with their larger counterparts due to the high cost of websites, customer relationship management and public relations companies, tv, and radio, etc. Nowadays a small business owner can build their own website (or outsource) with WordPress, use social media sites and apps like Facebook and Twitter for public relations and CRM, broadcast themselves on YouTube, and podcasts, and get paid instantly with PayPal, Google Checkout and others.
These are just a few ways technology can help a small business owner cut costs and focus on what they do best. Feel free to post your ideas too.
The Tech Accountant
Sunday, June 26, 2011
3 Cool Apps for Small Biz's
The web and social media are definitely changing the way we do business and it would appear that the government does not want to be left behind. First the IRS introduced their informational videos for small biz owners and the self employed, then followed suit with a Facebook page (also a FB page for tax professionals). Now the IRS and other governmental agencies continue to throw their hats into the social media scene, with some rather neat apps lately.
The IRS, U.S. Department of Labor and the Small Business Administration all have introduced smart phone apps that allow small biz owners, and their employees access to governmental services while on the go. Here's is a quick video about their new apps.
Do you think that the new apps will provide small biz owners and taxpayers with faster more efficient access to governmental resources? Feel free to let us know your thoughts.
The Tech Accountant
The IRS, U.S. Department of Labor and the Small Business Administration all have introduced smart phone apps that allow small biz owners, and their employees access to governmental services while on the go. Here's is a quick video about their new apps.
Do you think that the new apps will provide small biz owners and taxpayers with faster more efficient access to governmental resources? Feel free to let us know your thoughts.
The Tech Accountant
Thursday, June 23, 2011
IR-2011-69: IRS Increases Mileage Rate to 55.5 Cents per Mile
IR-2011-69: IRS Increases Mileage Rate to 55.5 Cents per Mile
The IRS has increased the standard mileage rate for the rest of the year starting on July 1st to %55.5 cents a mile. The standard rate is used to deduct the costs of operating a vehicle for business or other purposes. The IRS attributes the increase to the rise in gas prices and their effort is to offset taxpayers costs.
The IRS also increased the rate for deducting medical and moving expenses to $23.5 cents per mile. The rate for charitable mileage remains the same.
Taxpayers who use their automobiles for business purposes may also want to track actual mileage to ensure that they are reaping the most tax benefit. There are special rules regarding actual versus standard mileage rates so be sure to speak with your tax professional for additional guidance.
The Tech Accountant
The IRS has increased the standard mileage rate for the rest of the year starting on July 1st to %55.5 cents a mile. The standard rate is used to deduct the costs of operating a vehicle for business or other purposes. The IRS attributes the increase to the rise in gas prices and their effort is to offset taxpayers costs.
The IRS also increased the rate for deducting medical and moving expenses to $23.5 cents per mile. The rate for charitable mileage remains the same.
Taxpayers who use their automobiles for business purposes may also want to track actual mileage to ensure that they are reaping the most tax benefit. There are special rules regarding actual versus standard mileage rates so be sure to speak with your tax professional for additional guidance.
The Tech Accountant
Thursday, June 02, 2011
SBA Offers iPhone App for Small Businesses
SBA Offers iPhone App for Small Businesses
Here's a cool way to stay interacted with the SBA and help get your small biz up and running. I just downloaded it and will play around with it today. Should be a great app since Palo Alto is know for there great business plan software.
The Tech Accountant
Here's a cool way to stay interacted with the SBA and help get your small biz up and running. I just downloaded it and will play around with it today. Should be a great app since Palo Alto is know for there great business plan software.
The Tech Accountant
Thursday, May 26, 2011
9 Factors to Legitimize Your Biz
Recently I was privileged to speak at the Atlanta Professional Business Network (APBN) event celebrating National Small Business Week and the topic was how entrepreneurs can legitimize their businesses and minimize the chances of an IRS audit. We went over quite a bit of material that evening, but here are the major points:
According to the IRS, whether or not an activity is presumed to be operated for profit requires an analysis of the facts and circumstances of each case. Deciding whether a taxpayer operates an activity with an actual and honest profit motive typically involves applying nine non-exclusive factors contained in Treas. Reg. § 1.183-2(b). Those factors are:
1. the manner in which the taxpayer carried on the activity,
2. the expertise of the taxpayer or his or her advisers,
3. the time and effort expended by the taxpayer in carrying on the activity,
4. the expectation that the assets used in the activity may appreciate in value,
5. the success of the taxpayer in carrying on other similar or dissimilar activities,
6. the taxpayer's history of income or loss with respect to the activity,
7. the amount of occasional profits, if any, which are earned,
8. the financial status of the taxpayer, and
9. elements of personal pleasure or recreation.
No one factor controls, other factors may be considered, and the mere fact that the number of factors indicating the lack of a profit objective exceeds the number indicating the presence of a profit objective (or vice versa) is not conclusive. A profit objective in an earlier year does not automatically provide a taxpayer a blank check with regard to losses incurred in later years.
The bottom line for small business owners is to keep good records, operate in a businesslike manner and have a profit motive as your goal.
The Tech Accountant
According to the IRS, whether or not an activity is presumed to be operated for profit requires an analysis of the facts and circumstances of each case. Deciding whether a taxpayer operates an activity with an actual and honest profit motive typically involves applying nine non-exclusive factors contained in Treas. Reg. § 1.183-2(b). Those factors are:
1. the manner in which the taxpayer carried on the activity,
2. the expertise of the taxpayer or his or her advisers,
3. the time and effort expended by the taxpayer in carrying on the activity,
4. the expectation that the assets used in the activity may appreciate in value,
5. the success of the taxpayer in carrying on other similar or dissimilar activities,
6. the taxpayer's history of income or loss with respect to the activity,
7. the amount of occasional profits, if any, which are earned,
8. the financial status of the taxpayer, and
9. elements of personal pleasure or recreation.
No one factor controls, other factors may be considered, and the mere fact that the number of factors indicating the lack of a profit objective exceeds the number indicating the presence of a profit objective (or vice versa) is not conclusive. A profit objective in an earlier year does not automatically provide a taxpayer a blank check with regard to losses incurred in later years.
The bottom line for small business owners is to keep good records, operate in a businesslike manner and have a profit motive as your goal.
The Tech Accountant
Wednesday, May 18, 2011
IRS Marks Small Business Week by Showcasing Tools, Resources; Spotlights Tax Benefits Available in 2011
IR-2011-54: IRS Marks Small Business Week by Showcasing Tools, Resources; Spotlights Tax Benefits Available in 2011
Get the assistance you need from the IRS. Also sign up for the webinar today at 2pm ET titled "Small Business Advantage"
The Tech Accountant
Get the assistance you need from the IRS. Also sign up for the webinar today at 2pm ET titled "Small Business Advantage"
The Tech Accountant
Sunday, April 03, 2011
More Business or More Work
Do you want more work or more business?
Recently I was reading some comments in one of the LinkedIn groups I belong to regarding building your business and controlling the growth and one of the comments came from a husband and wife outfit (he handles the marketing and she handles operations). The husband stated that his wife wanted more business and not more work and the comment got me thinking “Do small business owners know the difference?”
I personally get asked similar questions by all kinds of people and organizations. Whether it is the survey from a vendor catering to small businesses, or a new person I just met at a networking function, the question always arises if my firm is seeking more work. Let’s take a closer look at the difference between more business and more work.
More Work
More work refers to a small business operation that the owner completes all or a majority of the tasks themselves. This type of business operation is okay for a start-up business. However, if and when a small business owner wants to take their business to the next level, the business owner must duplicate themselves and train other people to do part of the tasks or complete everything so that the business owner’s own efforts are used elsewhere.
More Business
Typically a small business can only take on more business once they have duplicated themselves efficiently and effectively and the majority of their efforts are focused on bringing in more “work” for others to do. If a small business owner is focused on completing the work, there is little time left to cultivate relationships and bring in more business. Hiring employees or outsourcing part of your business operations will allow the small business owner more time to grow their business.
So if you are a small business owner that wears all the hats in your operation, there’s a likely chance that you are taking on more work than business and once you reach your own personal capacity to do work, your business will have difficulty growing.
Let me know your thoughts on work versus business and feel free to post your comments.
The Tech Accountant
Recently I was reading some comments in one of the LinkedIn groups I belong to regarding building your business and controlling the growth and one of the comments came from a husband and wife outfit (he handles the marketing and she handles operations). The husband stated that his wife wanted more business and not more work and the comment got me thinking “Do small business owners know the difference?”
I personally get asked similar questions by all kinds of people and organizations. Whether it is the survey from a vendor catering to small businesses, or a new person I just met at a networking function, the question always arises if my firm is seeking more work. Let’s take a closer look at the difference between more business and more work.
More Work
More work refers to a small business operation that the owner completes all or a majority of the tasks themselves. This type of business operation is okay for a start-up business. However, if and when a small business owner wants to take their business to the next level, the business owner must duplicate themselves and train other people to do part of the tasks or complete everything so that the business owner’s own efforts are used elsewhere.
More Business
Typically a small business can only take on more business once they have duplicated themselves efficiently and effectively and the majority of their efforts are focused on bringing in more “work” for others to do. If a small business owner is focused on completing the work, there is little time left to cultivate relationships and bring in more business. Hiring employees or outsourcing part of your business operations will allow the small business owner more time to grow their business.
So if you are a small business owner that wears all the hats in your operation, there’s a likely chance that you are taking on more work than business and once you reach your own personal capacity to do work, your business will have difficulty growing.
Let me know your thoughts on work versus business and feel free to post your comments.
The Tech Accountant
Tuesday, March 22, 2011
5 Taxpayers the IRS is Targeting
There was a great deal of news that occurred over this past weekend but one of the more important stories was probably the deal between AT&T and T-Mobile to merge pending government approval. This will make AT&T the largest mobile provider and will affect a great deal of customers. There is however a little bit of other news that many tax payers may want to know regarding a new list out from the IRS.
According to the IRS, they are targeting specific groups of taxpayers for audits this year and taxpayers need to ensure that their return will not be flag by the IRS’s “Discriminant Function”. The 5 areas where the IRS is putting more focus is:
1. Schedule A Filers – Those that itemized their deductions
2. Schedule C – Those solo entrepreneurs that are not corporations
3. Schedule E – Those that own rental properties
4. Cash Basis Businesses – Those businesses that only use cash and not credit
5. Sales of Assets and other investments – Those taxpayers that have investments or assets for investments
What’s a taxpayer to do to ensure that their return is not flagged by the IRS? The most important factor is keeping good records that proved your deductions or credits are valid and that you qualify for them. Keeping good records can also help if your tax return is selected for an audit. Audits go a bit more smoothly when your paperwork is organized and typically result is no change or maybe even a little more money back for you.
The Tech Accountant
According to the IRS, they are targeting specific groups of taxpayers for audits this year and taxpayers need to ensure that their return will not be flag by the IRS’s “Discriminant Function”. The 5 areas where the IRS is putting more focus is:
1. Schedule A Filers – Those that itemized their deductions
2. Schedule C – Those solo entrepreneurs that are not corporations
3. Schedule E – Those that own rental properties
4. Cash Basis Businesses – Those businesses that only use cash and not credit
5. Sales of Assets and other investments – Those taxpayers that have investments or assets for investments
What’s a taxpayer to do to ensure that their return is not flagged by the IRS? The most important factor is keeping good records that proved your deductions or credits are valid and that you qualify for them. Keeping good records can also help if your tax return is selected for an audit. Audits go a bit more smoothly when your paperwork is organized and typically result is no change or maybe even a little more money back for you.
The Tech Accountant
Sunday, January 30, 2011
2010/2011 Tax Outlook -What happen and what to do in the future
The lame duck session of Congress is behind us and the new Congress is in session. So what happen at the end of 2010 and what can taxpayers expect going forward?
Here's is a brief overview of what the lame duck session did and how you can plan for your future taxes now.
The Tech Accountant
Here's is a brief overview of what the lame duck session did and how you can plan for your future taxes now.
The Tech Accountant
Thursday, January 13, 2011
Is snow clouding your biz? Here are 3 ways to bring back the sunshine
Snow storms that bring icy roads are a sure fire way to stop many businesses from operating, but for some businesses a snow storm should not be a problem. As many of you already know there has been quite a few snow storms moving across the nation (Florida was the only state not to have snow this week) lately and the one that hit the southeast has brought many cites to a halt. Technology can help many small businesses continue operations even in the event of inclement weather. Here are three technologies that can keep your small business operating when Mother Nature throws snow balls at your operations:
1. Web Conferencing – You have your presentation all ready for the big meeting tomorrow but when you wake up ready for work you find out the city is shut down due to a blizzard. No worries. By using a web conferencing service your meeting can continue as planned. Web conferencing allows users to conduct live meetings, presentations, and training via the internet. So if you are stuck at home find a nice quite place (away from the kids) and conduct your meeting just like you were face-to-face
2. Web Portals – You have the contracts all typed up and are ready to deliver them to the client but there is one problem, the roads are icy and you can’t make it to the client’s location. Not a problem if you are using a web portal. Web portals allow you to share documents with virtually anyone anywhere as long as they have access to the internet. The client can login to the secure portal (just like online banking) and access the document, review and send back to you. The contract is in the client’s hands possibly faster than you delivering it.
3. Remote Desktop Sharing – You have been snowed in your home for the past few days and have not been able to make it to your client’s location. The client is having a problem with their software and they need you there to resolve the issue. With a remote desktop sharing, you can access your client’s computer and walk them through the solution to their problem or even resolve the problem yourself. The client is happy that they can continue business as usual and you look like a hero without even leaving your home.
These are just a few ways a small business owner can use technology to continue their business operations when dealing with mother-nature. We currently use all of these technologies are more in our firm even when there is not a snow storm. Be sure to research these solutions for your small business so that you can apply them in the future.
The Tech Accountant
1. Web Conferencing – You have your presentation all ready for the big meeting tomorrow but when you wake up ready for work you find out the city is shut down due to a blizzard. No worries. By using a web conferencing service your meeting can continue as planned. Web conferencing allows users to conduct live meetings, presentations, and training via the internet. So if you are stuck at home find a nice quite place (away from the kids) and conduct your meeting just like you were face-to-face
2. Web Portals – You have the contracts all typed up and are ready to deliver them to the client but there is one problem, the roads are icy and you can’t make it to the client’s location. Not a problem if you are using a web portal. Web portals allow you to share documents with virtually anyone anywhere as long as they have access to the internet. The client can login to the secure portal (just like online banking) and access the document, review and send back to you. The contract is in the client’s hands possibly faster than you delivering it.
3. Remote Desktop Sharing – You have been snowed in your home for the past few days and have not been able to make it to your client’s location. The client is having a problem with their software and they need you there to resolve the issue. With a remote desktop sharing, you can access your client’s computer and walk them through the solution to their problem or even resolve the problem yourself. The client is happy that they can continue business as usual and you look like a hero without even leaving your home.
These are just a few ways a small business owner can use technology to continue their business operations when dealing with mother-nature. We currently use all of these technologies are more in our firm even when there is not a snow storm. Be sure to research these solutions for your small business so that you can apply them in the future.
The Tech Accountant
Thursday, January 06, 2011
Tax Relief and Your Small Biz
For most small business owners, the year 2010 was a continuation of hard economic times felt during the past two years. The economic indicators now state that there are signs that the economy is starting to recover, however many small business owners are still waiting to feel the effects of the recovery. In an effort to assist the small business owners, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 on December 17. The multi-billion dollar tax package includes a great deal of modifications to current tax law affecting small business owners and extends many tax provisions that expired at the end of 2009.
Small Businesses Modifications
The 2010 Tax Relief Act provides businesses with better incentives for investing in property that will help them run their businesses more efficiently. The Act increases the bonus depreciation limit from 50-percent to 100-percent for property purchased during periods September 8, 2010 thru December 31, 2011. The Act also extends 50-percent bonus depreciation on property purchased from December 31, 2011 thru December 31, 2012. Small business owners that have certain long lived property or transportation property may be eligible for 100-percent expensing for property placed in service before January 1, 2013.
The depreciation incentives for small business owners do not stop there, in addition to bonus depreciation; Code Sec. 179 Expensing (named after the IRS Code) has been modified. The investment limits were increased under previous legislation and the 2010 Tax Relief Act grants a $125,000 limit and a $500,000 limit on investment for tax years beginning in 2012. Depreciation allows small business owners to expense property purchased against their taxable income. The modifications to the tax law allow small business owners to recover the cost of property used in the businesses fast than traditional depreciation methods.
Small Business Extensions
There were quite a few extensions of previous tax law that were set to expire or expired in 2009. Among those extensions includes:
• 100 percent exclusion of gain from qualified small business stock
• Transit benefits parity
• Work Opportunity Tax Credit (with modifications)
• New Markets Tax Credit (with modifications)
• Differential wage credit
• Brownfields remediation
• Active financing exception/look-through treatment for CFCs
• Tax incentives for empowerment zones
• Special rules for charitable deductions by corporations and other businesses
Keep in mind that many of the 2010 Tax Relief Act’s provisions are temporary. It is important to plan early to maximize your tax savings. Be sure to speak with your tax professional to get all the details regarding the tax law changes.
The Tech Accountant
Small Businesses Modifications
The 2010 Tax Relief Act provides businesses with better incentives for investing in property that will help them run their businesses more efficiently. The Act increases the bonus depreciation limit from 50-percent to 100-percent for property purchased during periods September 8, 2010 thru December 31, 2011. The Act also extends 50-percent bonus depreciation on property purchased from December 31, 2011 thru December 31, 2012. Small business owners that have certain long lived property or transportation property may be eligible for 100-percent expensing for property placed in service before January 1, 2013.
The depreciation incentives for small business owners do not stop there, in addition to bonus depreciation; Code Sec. 179 Expensing (named after the IRS Code) has been modified. The investment limits were increased under previous legislation and the 2010 Tax Relief Act grants a $125,000 limit and a $500,000 limit on investment for tax years beginning in 2012. Depreciation allows small business owners to expense property purchased against their taxable income. The modifications to the tax law allow small business owners to recover the cost of property used in the businesses fast than traditional depreciation methods.
Small Business Extensions
There were quite a few extensions of previous tax law that were set to expire or expired in 2009. Among those extensions includes:
• 100 percent exclusion of gain from qualified small business stock
• Transit benefits parity
• Work Opportunity Tax Credit (with modifications)
• New Markets Tax Credit (with modifications)
• Differential wage credit
• Brownfields remediation
• Active financing exception/look-through treatment for CFCs
• Tax incentives for empowerment zones
• Special rules for charitable deductions by corporations and other businesses
Keep in mind that many of the 2010 Tax Relief Act’s provisions are temporary. It is important to plan early to maximize your tax savings. Be sure to speak with your tax professional to get all the details regarding the tax law changes.
The Tech Accountant
Wednesday, December 22, 2010
How the States have turned to “The Grinch”
Thanks to the state and local taxation (S.A.L.T.) experts over at Peisner Johnson and Company, LLP here is a brief video of the 10 worst states to give charitable contributions in. For those that did not know, there are quite a few states that tax charitable contributions of inventory and non-inventory items. So for those small business owners that were thinking about giving away some of their inventory or non-inventory items to charity, think again.
http://portal.sliderocket.com/AHJKO/Charitable_Donations
The Tech Accountant
http://portal.sliderocket.com/AHJKO/Charitable_Donations
The Tech Accountant
Tuesday, December 14, 2010
Small Biz Cloud Considerations
Small business owners (SBO’s) who use any kind of technology in their business will have undoubtedly heard someone mention “cloud computing” or “SaaS” (software as a service) and how this new technology will be the future of their business operations. Due to tighter small business budgets and a bit of misunderstanding of what the cloud has to offer, many small business owners continue with the “if it ain’t broke…” way of doing things. When speaking to small business owners about how they can streamline operations and save money, the topic of cloud computing seems to come up a great deal. I usually hear reasons for resisting the cloud to include security issues, control of data, and learning curve.
More importantly, if a small business owner is in the process of investigating a move to the clouds what steps should he take to ensure a smooth transition?
What I found out is that not every cloud accounting vendor has designed their product in the same manner. With security, disaster recovery, and data access being ranked the most important pain points for small business owners, I felt there was a need to get these questions answered first.
There are typically two approaches a cloud vendor will take when building their security infrastructure. Some cloud vendors address the security issue internally usually by building their own data centers with security measures built in and some cloud vendors outsource these functions to another vendor. Of the cloud accounting vendors that I spoke with, one did outsource their data center to an Amazon server farm. Their rationale was that Amazon’s security is top notch and they could focus their energy of developing the features of their cloud accounting product.
Cloud accounting products must also reassure small business owners that their data will be safe in the event of a disaster. A small business owner must ask in depth questions regarding the cloud vendor’s data center location, if there are additional data centers, and where those data centers are located to ensure that in the event of a disaster, the small businesses data will be protected and available.
Although having access to the data at all times is an important part of cloud computing, knowing who has access to your data is just as important. All the cloud computing vendors that I spoke to assured me that the only individuals that would have access to my data would be the individuals that I gave permission to. As with on premise software, a small business owner must have the proper controls in place to deter unauthorized access to certain areas of the software. The cloud vendors that I spoke to have integrated various levels of controls into their cloud offerings that include user name and password protection, password expiration dates, and permission access that limits what certain users can access.
As you can see, there are quite a few issues that need to be address before a small business owner takes a leap into the clouds. By speaking with cloud vendors, mapping out a plan, and test driving systems before going full speed with a cloud accounting solution, a small business owner can move their mission critical data to the clouds seamlessly.
The Tech Accountant
More importantly, if a small business owner is in the process of investigating a move to the clouds what steps should he take to ensure a smooth transition?
What I found out is that not every cloud accounting vendor has designed their product in the same manner. With security, disaster recovery, and data access being ranked the most important pain points for small business owners, I felt there was a need to get these questions answered first.
There are typically two approaches a cloud vendor will take when building their security infrastructure. Some cloud vendors address the security issue internally usually by building their own data centers with security measures built in and some cloud vendors outsource these functions to another vendor. Of the cloud accounting vendors that I spoke with, one did outsource their data center to an Amazon server farm. Their rationale was that Amazon’s security is top notch and they could focus their energy of developing the features of their cloud accounting product.
Cloud accounting products must also reassure small business owners that their data will be safe in the event of a disaster. A small business owner must ask in depth questions regarding the cloud vendor’s data center location, if there are additional data centers, and where those data centers are located to ensure that in the event of a disaster, the small businesses data will be protected and available.
Although having access to the data at all times is an important part of cloud computing, knowing who has access to your data is just as important. All the cloud computing vendors that I spoke to assured me that the only individuals that would have access to my data would be the individuals that I gave permission to. As with on premise software, a small business owner must have the proper controls in place to deter unauthorized access to certain areas of the software. The cloud vendors that I spoke to have integrated various levels of controls into their cloud offerings that include user name and password protection, password expiration dates, and permission access that limits what certain users can access.
As you can see, there are quite a few issues that need to be address before a small business owner takes a leap into the clouds. By speaking with cloud vendors, mapping out a plan, and test driving systems before going full speed with a cloud accounting solution, a small business owner can move their mission critical data to the clouds seamlessly.
The Tech Accountant
Tuesday, November 30, 2010
Small Biz vs. Form 1099's
I was under the impression that I would have more details regarding the proposed repeal of the Form 1099 reporting requirements today, but did not know it would be bad news.
Yes folks the Senate failed to repeal the 1099 requirements that many small business owners were hoping they would finish before the year end.
This means in 2012 small businesses will have the burden of providing a 1099 for any purchases that total $600 or more. Additionally very little information had been provided regarding the increased 1099 reporting requirements for landlords (in another bill this year) that starts in 2011.
Get ready for increased workloads small businesses for the score right now is Form 1099 (1), Taxpayers (0).
The Tech Accountant
Yes folks the Senate failed to repeal the 1099 requirements that many small business owners were hoping they would finish before the year end.
This means in 2012 small businesses will have the burden of providing a 1099 for any purchases that total $600 or more. Additionally very little information had been provided regarding the increased 1099 reporting requirements for landlords (in another bill this year) that starts in 2011.
Get ready for increased workloads small businesses for the score right now is Form 1099 (1), Taxpayers (0).
The Tech Accountant
Monday, November 22, 2010
The New Smart Vault
Cloud vendor SmartVault has come out with some great new features in their update release that are sure to be on the holiday list for small biz owners. Be sure to view the video below to see the new features in action.
I will be testing the new feature this week (since this will be a slow week) and will be sure to post some feedback regarding them. I will say that I am glad to see the product expanding more into other markets and not just the QuickBooks market. Smart....very SmartVault.
The Tech Accountant
I will be testing the new feature this week (since this will be a slow week) and will be sure to post some feedback regarding them. I will say that I am glad to see the product expanding more into other markets and not just the QuickBooks market. Smart....very SmartVault.
The Tech Accountant
Wednesday, November 17, 2010
Cloud Accounting for Small Biz's
Just in time to get small business owners ready for the new year and tax season, cloud accounting vendor Outright has partnered with Google and Shoeboxed.com to offer small business owners an easier way to integrate back office admin functions with their accounting product. Be sure to watch the video below and see how using cloud products can save you money, increase productivity, and focus on growing your business.
The Outright product is mainly geared toward sole proprietors (Schedule C)....sorry for everyone else, but there are cloud options available for you too.
The Tech Accountant
The Outright product is mainly geared toward sole proprietors (Schedule C)....sorry for everyone else, but there are cloud options available for you too.
The Tech Accountant
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