Do more with what you have

Small business owners need to find ways to make the most out of their existing resources and people to ensure that their businesses are viable in the slow economy. One important way to make the most out of your existing technology resources is to take a look at them and find ways to improve their performance. On a recent visit to the local computer supply shop, I took a look at some of the existing computer systems out on the market and although the prices are low (see previous posts) a small business owner may save their hard earned dollars by simply upgrading their existing systems. By adding additional RAM o our laptops, our firm was able to recognize faster systems that increased our productivity.

Another way small business owners can do more with what they have is to use their software to the fullest. Most small business owners only use about 20% of the features that are available in their software titles. By taking additional training course that are typically offered by software vendors, a small business owner can unlock the true power of their software and get more done. Most software vendors have free training and online communities that can assist small business owners with any questions they may have about their software.

So before you go out and spend your precious dollars one additional technology, be sure that you are using what you already have to the fullest.

Keeping Your Business N Synergy

Good ideas in a bad economy

It would appear that the government may take another look at the idea of taxing personal use of business cell phones. IRS Commissioner Doug Shulman and Treasury Secretary Timothy Geithner have changed their opinion of the proposed cell phone use tax and would like Congress to repeal the 1987 tax law. Thanks to everyone that sent their opinions to the IRS, there more than likely will not be a tax increase….good idea Doug and Tim to repeal the tax.

Another good idea for small business owners to stay afloat in the down economy is to look for better ways to manage people and processes. Many small business owners do not like change, but making a change may be the only way to stay competitive. Technology can play an important factor in streamlining operations, so be sure to map out a plan that will keep your business operating in high gear.

Keeping Your Business N Synergy

IRS phones one in

Many small business owners may not have heard about this one, and this may be some shocking news for those that have business cell phone plans. According to recent IRS Notice 2009-46 the treasury is looking to enforce an old 1989 tax law that would make business owners assign 25% of their employees’ annual phone bill as a taxable fringe benefit. For many workers, the change will increase their taxes. Currently the IRS is investigating three different methods to tax personal use of business cell phones. For more details on the IRS’s proposals be sure to take a look at the following diagram link.

The IRS is currently seeking public comment on the idea and this may be a great time for many small business owners to be heard. Send public comments to Notice.comments@irscounsel.treas.gov with “Notice 2009-46” in the subject line. Be sure to post your thoughts regarding the new tax the IRS is phoning in on this blog too.

Keeping Your Business N Synergy

SBA Programs for Small Businesses

The current economic situation has impacted small businesses negatively in the recent months and many need assistance to stay afloat. The Small Business Administration may be to the rescue for many small business owners with their Microloan program coupled with changes the American Recovery and Reinvestment Act made to it. The Act expands the amount of funding a small business owner can receive by $50 million and technical assistance grants by $24 million. The expanded funding will last through September 10, 2010 for small business owners no matter if you are in start-up, or growth stage the program may be beneficial.

The SBA Microloan program’s maximum term limit is six years and the maximum loan amount is $35k. Be sure to speak to your advisor regarding what documents the lender will need to process your loan. A Microloan may help your small business stay afloat in they tough economic times.

Keeping Your Business N Synergy

Computing Costs

Small business owners need to have efficient processes in place for their business operations to move smoothly. Usually having a stable and secure computer system will assist small business owners who need to have data access when making decisions with suppliers, customers and other vendors. With the economy being slow, many computer manufacturers and trying to liquidate their inventory and are offering all kinds of deals on their overstocks, but are these computers the right ones for your business? An article on PCMag.com may provide small business owners with the necessary information they need to purchase the right computer system for their business. For a technology based small businesses, actually purchasing a computer system may not be the best option due to the always evolving advancements in technology so these small business owners may want to look at leasing computer systems. No matter which option is chosen, the small business owner goes, they must take into account their budget limitations and their needs based on their business processes.

Keeping You Business N Synergy

Summer Help Wanted

The temperature is on the rise as the summer months begin and for many small business owners out there, their temperatures are on the rise too. What is the culprit this time…no not the economy, but the kids are around with nothing to do. For some small business owners, this is another added distraction from operating their business.

One way to possibly alleviate the distraction is to consider having your children work for you. This way your children’s time is occupied and your business can operate a bit more efficiently with the help. Additionally there may be a possibility for tax benefits having your children work for you due the child’s lower tax bracket. Be sure to speak to your tax advisor for these and other tax planning strategies you should be doing as the year progresses.

Keeping Your Business N Synergy

A new wave of cyber communication

Recently our blog posts have been focused on new technologies and how we will use them in the coming years. From accounting systems going totally online to using blogs, Twitter and social networking sites to build our businesses one can see that there is a change in the way we do business. Well for those that thought technology had run out of ideas, Google may have you waving good-bye to e-mail and saying hello to real-real time communication with their introduction of Google Wave.

Wave is a web based application that integrates e-mail, chat, blogs and other communication and collaboration forms into one. The beauty of the integration is that it is also done in real-time. If Wave is a success, this may be the end for other communication and collaboration forms that are not integrated together. Wave it set to release later on this year, but until then look at the video preview to see if you will be waving good-bye to your other forms of communication.

Keeping Your Business N Synergy

Educational Tax Trick/Tip

While scanning through my e-mails the other day, I came across an e-mail from computer and electronics seller Tiger Direct and since I am always interested in new technology to make life run smoother I opened it looking for deals. The e-mail stated that due to the new American Recovery and Reinvestment Act of 2009 taxpayers with a child in college will be able to claim technology products (laptops, netbooks, and internet to name a few) as qualified education expenses for year 2009 and 2010. In an effort to sell more units, Tiger Direct left out one important detail regarding the technology products purchased.

Products purchased by the taxpayer must be bought with funds from a Section 529 educational plan and not out of pocket. The e-mail is only partially correct and many taxpayers will think that their purchases will qualify for educational expenses when in reality they will not. Be sure to speak with your tax advisor to understand the tax advantages of Section 529 plans so that you can properly plan your educational purchases for the year.

Keeping Your Business N Synergy

Find Your Information Instantly

Most small business owners wear all the “hats” when it comes to running their businesses. From sales and marketing, to accounting, to day to day operations, a small business owner has to juggle many duties to get the job done. Problems can arise for a small business owner when they do not have access to information at a moments need. Bottlenecks can also occur when small business owners have difficulty locating necessary documents while in the office. If these situations have occurred while operating your small business, a look toward technology may be a solution.

By using a document management solution, small business owners can have access to their data virtually anywhere, their data will be organized decreasing bottlenecks, and the data is secure. There are many vendors that offer file storage/document management solutions so a small business owner must first access what their needs and storage sizes are.

Keeping Your Business N Synergy

The New River of Thought

A very interesting article came across my e-mail recently that I would like to share with everyone out there in blog land. Written by Mike LeMaster, president of Revenue Advisors LLC, the article focuses on how business owners must change their thought processes to stay competitive in the new economy. The way we do business is drastically changing and business owners need to change with the times or get left behind. LeMaster outlines four things a business owner can do to ensure that they stay competitive in the new economy. One thing business owners should focus on is how they operate their business today and look for ways to streamline operations and save precious money. Be sure to read the article and post your thoughts about how your business will sail down the new river of thought. If a business decides not to sail down the new river, there is a large chance that the business will sink.

Keeping You Business N Synergy

Virtually virtual accounting

Small business owners are constantly looking for more ways to streamline their operations and save money. A great way to increase productivity and save precious dollars is to have 24/7 access to your data. 24/7 data access allows the small business owner to make sound business decisions based on real-time information. Real –time financial information can only be obtained from a financial system that is virtual (or online). There are two ways that a small business owner can setup a virtual accounting system, through and ASP or a SaaS.

ASP

An ASP or application service provider allows a small business to login to their computers where popular accounting software packages (like Microsoft Office Accounting, and QuickBooks) are located. The small business owner’s books are then hosted on the ASP’s computer where they can be accessed anytime online.

SaaS

SaaS or Software as a Service is typically a web based accounting system (such as QuickBooks Online, or AccountantsWorld Accounting Relief) where a small business owner would login to the accounting system itself instead of a computer that hosts the accounting software.





Which system is right for your small business will depend on a few factors so be sure to speak to a financial technology consultant and conduct a detailed needs assessment that focuses on your existing systems and processes.

Keeping Your Business N Synergy

Accounting software to the rescue

We recently conducted a small business seminar that was geared toward assisting small business owners with their accounting and back office functions. The main point that was conveyed was that a small business owner needs to use an accounting software title to fully benefit from the organization and productivity gains their business will experience. One software title that can help those small business owners just starting out is Microsoft Office Accounting Express (MOAE). MOAE integrates seamlessly with all of Microsoft’s Office products so the learning curve is not as steep as other software. MOAE is also already customized for those tech savvy business owners that sell products online with integration with eBay and payments through PayPal. MOAE is also free as a download so small business owners have nothing to loose to try it out. Download MOAE today and get your small business running faster and with more organization.

Keeping Your Business N Synergy

Small Business Audits Follow Up

There have been previous posts on the topic of the IRS auditing small businesses and with the latest news, there is a need to revisit the topic again. According to IRS Commissioner Doug Shulman small businesses with assets between $10 million to $50 million are eight times more likely to be audited than businesses with less than the amount. The IRS is trying to reach out to small businesses (especially Schedule C filers) through increased resources on their website and collaborative efforts with small business accountants. In these tough economic times, small business owners are better prepared to cope when they have all the information at their fingertips.

Keeping Your Business N Synergy

The Stimulus Surprise

While doing some tax planning for a client earlier this week, we noticed that there may be a chance that the taxpayer would either owe taxes this coming year or their refund would be a bit smaller. This is partly due to the taxpayer’s own personal situation; however the “Making Work Pay” tax credit is the major factor in the change. The credit is part of the stimulus package recently signed into law and there maybe be quite a few taxpayers who will have a surprise next year at tax time. The credit provides taxpayers with $400 to $800 during the year, but certain taxpayers will have to pay some of that money back when they file their taxes. Those taxpayers that will be affected are the married taxpayers where both spouses work, workers with more than one job during the year, and retired taxpayers with earned income (this is a lot of people). This is another reason that taxpayers should be planning for tax season next year now.

Keeping Next Year’s Taxes N Synergy Now

Inter Net Tax

Small business owners that purchase goods over the internet versus a traditional store front may want to start setting aside money to pay for the sales tax on the goods. The Supreme Court has recently backed the idea of state sales taxes on internet sales even though the many companies do not have a physical presence in the state. With the economy being down and state budgets being cut, many revenue departments are looking for ways to increase their bottom line. Small business owners should set aside money for sales taxes or at least research the taxability of online items before purchase. Sales taxes are based on state tax law, so the rules from state to state are different. Be sure to speak to your accountant regarding any sales tax issues that may arise especially when purchasing big ticket items online.

Keeping Your Business N Synergy

Backups not leaving your back out

Small business owners should have a consistent data backup procedure in place to ensure that their operations do not miss a beat in the event of a theft, or loss from disaster. When thinking of the correct way a small business owner should backup their data, the story of the passengers of US Airways Flight 1549 come to mind. One passenger back up his data the correct way, secure and at an offsite location; the other passenger back up his data with thumb drives. Guess whose data was accessible once the plane landed in the Hudson?

Be sure that your business has a consistent, offsite and secure backup plan for your data. A small business technology consultant can provide a roadmap on the procedures for backing up data, the backup schedule and more. That way your backup won’t have your back out.

Keeping Your Business N Synergy

Understanding the Stimulus

The economic stimulus package was signed into law earlier this year and many taxpayers are under the impression that they will be receiving a check this year just like the last stimulus package signed in 2008. The 2009 stimulus is setup a little bit differently; taxpayers with W-2 income will see an increase in their paychecks for 2009 and 2010. The increase will be based on the taxpayer’s filing status but will range from $45 to $65. So in a nutshell there will NOT be a check sent to anyone with a W-2.

Who will receive a stimulus check are recipients of Social Security, Veterans and Railroad retirement. The payment will be in the amount of $250 and only those taxpayers who were already receiving retirement benefits by January 31 of 2009 will get a check. Small business owners (Schedule C filers) will want to make tax payment adjustments so be sure to speak to your tax advisor to devise a plan and take advantage of the stimulus changes.

Keeping Your Business N Synergy

Tax Filing is over…now tax planning begins

As many taxpayers scurried around trying to file their taxes (and or extensions) last week many felt a bit of relief when they dropped their return in the mail or had their tax professional e-file their return. Hold on there taxpayers for this is the best time to properly plan for next years taxes while taxes are still fresh in your mind. There have been quite a few tax changes recently and many will affect taxpayers when they file their 2009 tax returns. Be sure to stop by and speak to your tax professional regarding how the new tax laws will affect your future tax filings. Most tax professionals will walk the taxpayer through a post-tax season checklist that covers all aspects of your tax situation whether it is personal or small business issues. By properly planning now, taxpayers can have a less stressful tax season next year.

Tax planning will keep your Business N Synergy

The End

So the last day to timely file your tax return (without an extension) is upon us and many have taken to the streets to either file their tax returns or join in the tea party. The present is the best time for many taxpayers to plan for next years taxes. If you are one of the taxpayers out there that forgot some of your deductions, be sure to file an amended return.

Well the day is now over and vacation time is in the future for many in our office.

Keeping Your Taxes N Synergy

Increase Your Net Worth with a Netbook

Small businesses are always looking for ways to save money at the same time increasing productivity. One important way to accomplish the task is to invest in technology that is cost effective and can be seamlessly integrated into your operations. Many small businesses are spending technology dollars on “netbooks” instead of laptop notebooks due to their compatibility with existing small business software and their low price. What is a netbook you may ask?

A netbook is a small version of a laptop notebook but does not skimp when it comes to features and power. The price of netbooks ranges anywhere from $250 to $400 and sales of them are certainly on the rise. Netbooks do have smaller viewing areas and keyboards; however these are minor issues that can be overcome. Check out PCMag.com’s article to see if a netbook can increase your productivity and net worth.

Technology N Synergy

1 Week till Tax Deadline

Many taxpayers have more than likely filed their tax returns, but for those that have not; the deadline is one week away. According to a recent article in Accounting Today most taxpayers have been preparing their own returns with off the self and online tax preparation. E-filing numbers are also up for the 2009 tax season. For those taxpayers that have not filed their tax return, an extension may be in order. Be sure to complete Form 4868 (can also be e-filed). The extension of time to file does NOT extend the time to pay. Taxes due must be paid by the April 15th deadline. Speak to your professional tax advisor for additional options if you can not pay the total amount due.

Getting Your Taxes N Synergy

Congress Helping the Small Business Owner

Small business owners (especially those that file Schedule C) are getting a little assistance from Congress recently. Congressional leaders are pressing the IRS to ease up the audits on small businesses (see previous posts regarding the tax gap) and let small business owners take advantage of the tax relief provided in the American Recovery and Reinvestment Act. Small business are getting audited more often than their larger counterparts, coupled with the fact that small business are the backbone of the economy, providing the small business owner a helping hand may be a good idea. Blog readers can be rest assured that we will keep you posted on any changes that will benefit you and your small business. Be sure to speak to your tax advisor regarding how the American Recovery and Reinvestment Act will affect your small business this year.

Business N Synergy

Conficker Conflicts

Today is the day of pranks all over the country and although most April 1 pranks are suppose to be harmless and fun; the Conficker worm is no laughing matter. For those that are worried about their computer systems being compromised, be sure to get all the facts regarding the Conficker worm. According to an article in PCMag, the worm should (and I emphasis should) not harm many of the computers operating in the U.S. that is if those computers are not loaded with updated anti-virus and malware software. Another security procedure that many should take is to ensure that their passwords are strong and updated regularly. This reader was also surprised to learn that the Conficker worm is mainly a Microsoft XP issue. Be sure to check out the PCMag article for ways to protect your computer and remove the worm if you have it already.

Keeping Your Tech Gadgets N Synergy

IE 8 is Here

For those that did not know, Microsoft has finally unveiled their Internet Explorer version 8. We have currently been demoing the beta version of the product and must say that it has improved considerably. IE8 provides small business owners with more security and stability to help them run their businesses more efficiently. Small business owners that have not had a chance to beta test IE8 can now get the browser from the Microsoft website.



Technology N Synergy

A waiver goodbye

Taxpayers that are in their retirement years are provided a small bit of relief for 2009 with regards to their IRA’s. According to the IRS there is a temporary waiver being offered of the required minimum distribution rules. Taxpayers are not required to take a minimum distribution from their traditional IRA. The waiver is available to IRA participants and beneficiaries.

The change means that taxpayers can take withdrawals a year later than the past. With the economy down, the change allows retired taxpayers to not dip into retirement funds after waving goodbye to the majority of the retirement income. There are additional details regarding the waiver, so be sure to speak to your professional tax advisor for details regarding eligibility.

Your Taxes N Synergy

Technology Tax Breaks

Small business owners are constantly looking for ways to cut costs and increase productivity within their operations. Recently I was able to speak first hand with a group of small business owners at a networking event regarding how the new American recovery and Reinvestment Act would affect their businesses. One of the major changes within the Act was the changes to bonus depreciation and Code Section 179 depreciation (expensing) that will allow small business owners to deduct more of the costs associated with certain asset purchases. One common asset purchases for small businesses are computers and other technology equipment. Computers play an important role in the operation of a small business and a small business owner needs to know all the facts before purchasing a new system.

Those small business owners that are interested in purchasing a laptop, SB360 have developed a free training webcast on how to select the best laptop computer for your small business needs. The webcast will provide a small business owner with information on the different types of laptops available, how to evaluate the differences between laptop components, and your small business needs.

The webcast is a great way to get all the facts about laptops before you buy to ensure that the system that is purchased is the right one for your small business needs. After you have selected the model, be sure to speak to your tax advisor to carefully plan your depreciation deduction.

Technology Keeping Your Business N Synergy

Your Pay Is Up!!!

With the passage of the economic stimulus package recently there are a great deal of changes that will more than likely effect all taxpayers. One of the more important parts of the stimulus package is the Making Work Pay credit. In a nutshell the credit will increase the amount of an employees take home pay. There are income limitations however so higher income taxpayers may not apply. Typically an increase in an employee’s take home pay would be caused by a change in their withholding information (Form W-4). This credit ($400 for individuals and $800 for married couples filing jointly) can be claimed on the 2009 income tax return.

When Should a Taxpayer change their Withholding?

Taxpayers may want to update their withholdings if the following conditions apply:

• Taxpayer started a new job
• Taxpayer has self employment taxes and no estimated tax payments were calculated
• Taxpayer is employed and receives alimony
• Taxpayer is employed only part of the year
• Taxpayer held more than one job during the year.

Be sure to speak to your professional tax advisor regarding the stimulus tax changes, or withholding changes.

Taxes N Synergy

Windows 7 Small Business Panes

Recently while reviewing small business networking sites and forums, a few conversations centered around small business owners trying to decide on new technology improvements and many were stating that they were going to keep their XP systems until the release of Windows 7.

Hold on there small business owners…..

As a small business that not only has run the beta version of Windows 7 on a business machine (not recommended by Microsoft) and one that tries to stay ahead of the technology curve waiting may not be a very smart move. While there will still be issues with software compatibility, small businesses XP computer systems may not be able to handle Windows 7 thus an upgrade will be needed. Microsoft will continue to service XP through 2014 so there is still some time to receive support.

A Vista machine makes the path towards Windows 7 at bit less painless due primarily to tighter compatibility between Vista and Windows 7 and lessens the chances of software problems. Small businesses thinking about adding the Windows 7 pane, should map out a technology plan that is in line with their goals and budgets.

Technology N Synergy

Take More than Standard

When a taxpayer files their taxes they have the option to take either the standard deduction or itemized deductions that go on Schedule A. For those taxpayers that do not qualify for the itemized deduction, the IRS has a small bit of relief. For tax years 2008 and 2009 standard deduction taxpayers will be able to take an additional standard deduction for real estate taxes that are paid in those years.

There are a few things a taxpayer will need to ensure that they qualify to take the additional standard deduction for real estate taxes. Be sure to review the IRS Form 1040 instructions or speak to your professional tax advisor for details so you can take more than the standard deduction.

Keep Your Taxes N Synergy

Small Business Paperless Options

Maintaining an organized back office and filing system can become quite a strain for many small business owners (SBO’s). Small business owners are currently more focused on cash flow and sales than taking care of the administrative tasks. There are a great deal of online tools available to SBO’s that can assist them with the administrative tasks. Many of the options can be added with a very small learning curve and price.

Here are a few examples of paperless options that small business owners can utilize to assist with back office administrative tasks:

• Company Intranets – Can help SBO’s stay organized, access documents, track progress on projects.
• Online File Storage – SBO’s have a centralized location for all documents.
• Online Backup – SBO’s have assurance that their critical documents are available in the case of a casualty, theft, loss, or disaster.

A simple search of “small business paperless options” will provide the SBO with all kinds of paperless solutions. When searching for paperless options SBO’s should look for solutions that are secure, improve productivity, improve customer service, and ensure business continuance. Typically the change from paper to paperless in an ongoing process and SBO’s should closely monitor technology expenses to ensure there is a cost benefit.


Keeping Your Business N Synergy

Get Your Money Off The Table

There was a recent web poll conducted by Liberty Tax that provided some very revealing information about our economy and tax refunds. Over 80% of the respondents filed their tax returns early because they really needed the money this year. This filing season more than ever, those taxpayers expecting a refund are getting their returns filed as soon as possible. Timely filing your taxes should be a priority every year, but according to the IRS, many taxpayers have forgotten to file all together. The IRS estimates that it has around $1.3 billion in unclaimed refunds from 2005.

Taxpayers that have not filed a 2005 tax return and have not received a “nasty gram” from the IRS may need to file a tax return before the April 15th tax deadline this year. After that time the statue of limitations will expire for refunds in 2005. If you are one of those taxpayers that may not be able to locate all of your tax information from 2005, there are additional forms that will need to be sent to the IRS that will ensure your filed return is accurate. Be sure to speak to your professional tax advisor for more information. In this economy, not leaving any money on the table can play an important role in your financial stability.

Keeping Your Taxes N Synergy

Accounting Software N Synergy

For a small business owner, having immediate access to information about their business can be one of the most important factors in making sound business decisions. Accounting software can provide a small business owner with a wealth of information that can lead to tax savings, improved cash flow, and better internal controls. The information that an accounting software title provides is only as good as the information that is entered. This is why it is important for a small business owner to accurately setup their accounting file before they start to actually use it. Many times this will require hiring a professional small business software consultant who knows how to setup your company file based on the business’s specific needs.

As a small business owner, many wonder where they should start after they have purchased a small business accounting software package from their local office supply store. Be sure to check out this following PCMag article that will guide them through organizing their information before entering it into the software, after it is entered, and beyond. Taking these steps is one of the most important aspects of running a small business for if you put garbage into your accounting software you will only get garbage out.

Keeping your Business N Synergy

Giving to Charity

Taxpayers that gave to a charity in 2008 may find it difficult to accurately assess the value of their household items that are donated. IRS rules according to Publication 561 require that items are given a Fair Market Value (FMV) based on what the item would sell for on the open market. Many tax preparation software titles have a donation calculator built in. Here is a nice link from the Salvation Army to cross check what your software calculates or to use alone. Most lists are adjusted yearly and there are times when appraisals may be needed. Also, it may be a good idea to check more than one list because FMV amounts can vary.

Keeping Your Taxes N Synergy

Your QuickBooks is slow

Intuit, the makers for the widely used small business accounting software QuickBooks have been seeing an increase in the disapproval of the changes that were made with their 2009 product. According to many of our clients and others that I personally have seen on accounting web forums, the problems seem to arise from the new R6 update and the online banking features of the product. According to Intuit, they are frantically working on the updates to ensure that the software is more stable. Some specific issues that are being addressed are:

• Performance issues
• Pre-fill split totals, reminders
• Pre-fill QB forms (checks, CC charges)
• Expanded account associations

Intuit states that they will not be able to fix all the issues at once and request that users of the 2009 product be patient. Many small business software consultants are advising their clients to wait on upgrading to the new 2009 version of QuickBooks. Another option is to look toward other more stable options for your small business accounting software. Maintaining a stable accounting system is important for any small business owner.

Keeping Your Business N Synergy

Bill is Signed…Now what?

The President has signed the much anticipated American Recovery and Reinvestment Act of 2009 that will provide the country with almost $800 billion in economic stimulus. Of that amount, about $300 billion is for tax relief. So as a taxpayer, many wonder how this will affect them. The bill provides for tax relief for individuals and business owners in many areas. Specifically the tax relief is broken down into general tax relief, education relief, AMT relief (Alternative Minimum Tax), business relief and energy relief. Many of the provisions in the tax relief take effect in 2009 and beyond, but there are a few that take effect retroactively for 2008.

For details of the tax provisions and how they will affect your current and future tax filing seasons be sure to speak to your professional tax advisor to find out which provisions will be beneficial to you.

Keeping Your Business N Synergy

Tax Gap Bridge Delayed

The IRS had made a concerted effort in the past few years to close the tax gap through enforcement and compliance. There have however been problems with the execution of their plans. With high workloads and low employee levels, closing the tax gap has been quite a large task for the IRS. Well now the IRS has more problems to deal with since a new report by the TIGTA (Treasury Inspector General for Tax Administration) reveals that the IRS has not been effective with their cases that involve large dollar amounts. The IRS estimates that discontinued collection accounts total around $209 million.

Guess the new report means that there will be a delay in building the bridge to close the tax gap.

A Counting For Tomorrow

The advent of technology has made a significant impact on the lives of the small business owner. There are a myriad of tech tools out there that can help a small business owner mange their businesses more smoothly (many have been mention in our posts). One major tool is accounting/bookkeeping software and when the software is properly setup, important information is at the fingertips of the small business owner. Looking ahead tomorrow, accounting software is continuously evolving. Recently two former QuickBooks employees received 2 million in funding for their online bookkeeping service business. The new service called Outright.com plans to focus on SOHO (small office home office) types businesses. Small business owners will now have the access to their financial information anytime, anywhere.

The news is interesting for two reasons in my opinion one, small businesses are receiving investment funds in this economy especially when your idea is forward thinking and progressive. The second reason is that the funding move is a good example of where technology is taking the accounting/bookkeeping world. As a small business owner always look ahead so you too can account for tomorrow.

Keeping Your Business N Synergy

Great Payroll Freebie

For those of you out there that are interested in processing your own payroll or would like to cut down your payroll processing time, be sure to check out online payroll processor Paycycle’s website. By using an online payroll processing resource like Paycycle, the headache of processing your payroll, withholding the correct amounts, and paying the taxing agencies will go away. For those that are new to processing payroll, be sure to pick up a copy of Payroll For Dummies a free booklet being offered by Paycycle. The booklet will provide any small business owner with the necessary tools they need to process their payroll quickly, efficiently and with fewer errors.

Keeping Your Business N Synergy

A Late Year End

For most of us, the year 2008 could not have gone away any faster. This is especially true for many taxpayers that saw the majority of their investments fall considerably as the financial markets took their swan dive. As tax season moves into high gear, and taxpayers eagerly anticipate their tax refunds; a recent IRS article informs taxpayers to not file their returns so fast for they may not have all their year end forms. Many of the year end forms from brokerage firms, mutual fund companies and barter exchanges may not arrive till mid February. The change for certain Form 1099’s to mid February was enacted last fall and will provide investment firms more time to ensure the accuracy of their forms. The change will hopefully reduce the rate of amendments by the investment firms and ensure taxpayers tax returns are filed correctly.

If you have not received your year end statements from your investment firm, don’t fret, it should be in your mailbox by the 17th of February.

Keeping Your Taxes N Synergy

Just Browsing

As the war for internet browsers begins to heat up, there is one other variable that small business owners should consider. If you are a small business owner that uses an online bookkeeping solution like QuickBooks Online Edition, and you use a web browser other than Internet Explorer, will you be able to access your data using another browser. Recently a client had a problem accessing their data using the Firefox web browser and luckily there is a fix for the problem by simply locating an add-on for the Firefox browser. The add-on allowed the client to continue to use their existing web browser at the same time being able to access their data. There was no change on our end since we use Internet Explorer.

Small business owners are sure to check for additional add-ons to many of the new and improved web browsers if you are not running Internet Explorer so that your business can continue to run smoothly.

Keeping Your Business N Synergy

Give Away Your Tax Refund

As tax season really gets geared up, many taxpayers are in a panic to get their returns done as soon as possible to receive their refunds. A great deal of tax preparation shops will prepare a taxpayer’s return based on the information from their last pay stub (as I am sure many have seen in the commercials) and they also offer to get your money back to you in as little as 24-48 hrs. Let’s look a bit deeper into how this process works and see if it is really a good deal.

So it is now the end of January, and due to the state of the economy now you want your money back from taxes fast. Most taxpayers do not realize that getting a refund back should not be the goal of their tax strategy. What a refund means is that you paid too much into the tax system and the government is giving you YOUR money back. That means that you loaned the government your money for a year and did not earn any interest on it.

You then proceed to the nearest tax preparation shop and have your taxes prepared where you are then offered to receive you tax return in as little as 2 days via a Refund Anticipation Loan (RAL). This offer may sound good, but don’t forget nothing is done for free. There are additional fees (including the tax preparation fee) that are included in this offer, which can include:

• Refund Account Fees to the Bank making the loan
• Document Preparation Fee to the Tax Preparation Firm
• Finance Charges

In the end, the money you loaned the government with no interest is cut down by additional fees leaving the taxpayer with less money in an economy that is taking a toll on everyone. The tax payer also pays finance charges that have an annual percentage rate of over 100%. A typical $1300 tax refund will be slashed to around $900 when all the fees are deducted. Something to think about as cash strapped taxpayers in this economy.

Keep Your Home Finances N Synergy

Free Productivity Keeps You N Synergy

The list is finally out by PCMag.com of the Best Free Software. Be sure to check it out for there are some handy little jewels out there that will help anyone increase their productivity, save time, and money whether you are running PC, Mac, Windows or any other operating system. With over 170 different kinds of software that is categorized to your needs, there is surely something out there for everyone. Our firms uses a great deal of them in our daily activities. Check them out so they can increase your productivity at work and home.

Stay N Synergy

Tax Season Tips – Selecting a Tax Preparer

My previous post gave taxpayers a bit of information regarding FREE tax filing services for individuals, but what if you have a complicated tax matter, or need a corporate tax return prepared? Odds are the taxpayer is going to have to seek out the assistance of a professional tax preparer. Selecting a tax preparer can become a tricky undertaking for many. As I browsed the postings in the financial section of craigslist, I came across a great deal of “ads” offering taxpayers money for referrals, and some even offering gifts for tax preparation services. Although a majority of these ads stated that they were licensed professionals, their code of ethics seems to fall by the way side. Some ads would guarantee refunds and their payment would be a percentage of the said refund. This is a major no-no from the IRS. Other things taxpayers should avoid are:

• Avoid preparers who base their fee on a percentage of the amount of your refund or who claim they can obtain larger refunds than other preparers.
• Avoid tax preparers that ask you to sign a blank tax form.
• Check to see if the preparer has any questionable history with the Better Business Bureau
• Find out if the preparer belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.

These are just a few tips to keep a taxpayer in voluntary compliance and avoid penalties and interest in the long run.

Keeping Your Business N Synergy

Free is not always better

The IRS launched their free online filing system for taxpayers on Friday, and I have come across quite a few taxpayers that are thinking about using this service instead of a tax professional. While this is a viable option for cash strapped taxpayers in this economy, there are a few things that tax payers should know about the system. A recent report from the Treasury Inspector General for Tax Administration revealed that the IRS did not resolve some of the security issues before launching the system last week. The security issues are related to system access, monitoring of system activities, disaster recovery and the protection of sensitive data and these vulnerabilities can put many taxpayers information at risk.

Almost 5 million returns were filed with the IRS Free File last year as many taxpayers view e-filing as a better alternative to paper filing. This tax season be sure to keep your personal information secure for a free e-file process may come back to cost you in the long run.

Keeping Your Business N Synergy

Auditing on the Front End

Taxpayers thinking of trying to put one past on the IRS think twice this tax filing season. In a recent report by the GAO (Government Accountability Office), they recommend that the IRS begin their enforcement efforts during the returns processing stage of the process as opposed to after the return is filed. In the past a return would be filed, only for a few years to go by before the IRS sent the taxpayer the dreaded “nasty gram”. Well those days are a thing of the past.

There are two major areas recommended in the report where the IRS could audit returns while processing, one are is the eligibility of the child and dependent care tax credit for married filing separately taxpayers. The other area is verifying the EIC (earned income credit) claims by non-custodial parents. These are the two major areas where tax return claims could not be verified.

So taxpayers that think that can get one by on the IRS beware, for you will be caught. If you look at the situation another way the IRS is doing you a favor, instead of catching you later and interest and penalties adding up; you will be caught early and won’t owe as much. Either way it is not a good idea.

Keeping Your Business N Synergy

Tax Deal of the Day

Here is a great deal for those small business owners out there that are confident enough to prepare their own small business tax returns. Get Turbo Tax from Intuit for FREE and you can prepare your own tax return at the same time saving you some money. Fees will apply for the state return, but the savings is well over $100 for the federal return and it comes with federal e-file. Those small business owners that have pretty straightforward tax returns, this deal is right up your alley. If you’re small business finances are a little more complicated and/or you simply do not want to attempt to prepare your own small business return, be sure to seek out the help of a professional tax advisor. The software also does not take the place of efficient tax planning so be sure to take your completed return to your advisor so the both of you can sit down and map out a strategy for 2009 and beyond.

Keeping Your Business N Synergy

Big Brother watching your Small Business

While working as a manager for a previous employer, there were many times when our employees’ productivity would fall due to the many “tech” distractions in the office. The main tech distraction culprit was (and probably still is) the internet. Employees surfing the internet when work needs to be done is a major factor in loss productivity, your data being compromised, and possibly your business losing its competitive edge. The first line of defense in most small businesses is to have employees sign an internet usage policy, but how does a small business owner enforce the policy?

Here is a little software gem that I can across earlier this week that is sure to help small business owners monitor virtually everything that their employees do on their work computers. Spector 360 will track every key stroke, website, IM conversation and more. The cost is only $75 per employee which is a pretty good deal when you think about the savings down the line.

Employees beware; your Big Brother small business owner may be tracking you so stay on task.

Keeping Your Business N Synergy

Get Organized in 2009

Happy New Year to everyone out there in Blogger land. With the beginning of 2009 here, many are professing those usual New Year’s resolutions that are usually broken by the end of this week. One important resolution that everyone should make if they are not already is to be more organized this year. Being more organized can make your life less stressful and in the long run can save you money. Take this example:

Taxpayers that are organized have a better chance of getting all their tax deductions at tax time because they have all the necessary paperwork all in one place. Scrambling at the last minute to find paperwork can cause many taxpayers to be ineligible for some tax credits and deductions if they are not found in time for filing. Organization can also save you money on tax preparation because your tax advisor will spend less time preparing your return if everything is in one place.

Some ideas to help organize your life in 2009 can include using a debit card for purchases instead of checks, consider checking your statements from your bank and credit cards companies online, keeping a mileage log, and using an online calendar to track appointments and tasks. Make 2009 your year to get organized.

Keeping Your Business N Synergy

Your Income Tax….May be Wrong???

Now that the holidays are mostly gone, many of us are looking for ways to pay off the holiday bills that we have built up. Usually the first option that comes to everyone’s mind is their tax refund, and we now scurry to get all our tax information together just like we are scurrying for those gifts for friends and family. Many taxpayers make an attempt to prepare their taxes on their own without the assistance of a tax professional by using off the shelf software and income tax books.

One of the main books that taxpayers use is J.K. Lasser’s Your Income Tax editions. These are rather nice references for a taxpayer to have that include a wealth of information; however the current version (2009) was printed before all of the current tax changes were put into effect. If you were one of the taxpayers that bought the 2009 edition, be sure to check their website for updates to the printed information or speak to a tax professional that has the proper training regarding the new tax law changes.

Keeping Your Business N Synergy

Getting Taxed While Injured and Innocent

While working at a client today, one of their customers overheard us talking about the upcoming tax season and asked if I did taxes. After responding that I did the individual asked me a couple questions about how the IRS handles issues when one spouse owes and the other spouse has debt or other obligations that have not been paid. After telling the taxpayer how it was handled I thought to myself that many other taxpayers may be in a similar situation. The situation can usually be handled using the IRS injured spouse or innocent spouse rules.

Injured Spouse – an injured spouse occurs when the IRS attempts to seize the refund on a jointly filed return when only one spouse owes debts or obligations. Relief for the “injured” spouse can be obtained by filing Form 8379.

Innocent Spouse – an innocent spouse occurs when the IRS seizes the refund of a jointly filed return when only one spouse made fraudulent reports on a joint return. Relief for the “innocent “spouse can be obtained by filing Form 8857.

There may be additional steps that may need to be taken, so be sure to speak to your tax advisor before filing in either situation.

Keeping Your Business N Synergy

Tech Tools to Improve Your Small Business

Keeping with the technology theme of our last post, I simply wanted to give an update on our firm’s field computer woes. We luckily were not “down” very long as it only took the computer repair shop one day to isolate and fix our problem. It turns out that something was wrong with the main PC board on the laptop and being that it was still under warranty, the repairs were free. So we are now back up and running smoothly.

I did get a chance to check out some new software that might prove useful for many of the small business owners out there and the great thing about them is they are free. The first one is called Jing Project and it allows users to capture pictures from their own workstations, record video of your click thru’s and then share those click thru’s with others. This is great for those of you who need to walk others through steps and processes (like assisting clients with accounting software). The second is somewhat similar and is called Dimdim. Dimdim is a free web conferencing service (no software to download) that allows you to share your desktop for web based live meetings. They offer a free version but down also have low cost editions that offer more features.

If your small business wants to be on the cutting edge of technology and compete with the Big Boys, be sure to check out these tools. Our firm uses them and loves them.

Keeping Your Business N Synergy

Technology CYA

Recently our office had to deal with a system crash of one of our field laptops. Usually for a small business, a system crash can be a major setback. There are ways to minimize the chance that a system crash does not send you business into a holding pattern and by following a few steps a small business can save money in the long run. Here are a few process and procedures that our firm uses to minimize the chance of lost data when a system crashes.

1. Password protect any (and all) computers – whether they are used within the firm or in the field.
2. Do not save critical data on the hard drive – use an online secure storage service or some other offsite secure storage facility
3. Create (and use) a backup schedule – for very critical data, backup on a daily basis.

These are just a few of the processes and procedures that our office uses to ensure that our critical data is always accessible. If the procedures were not in place, there would be increased costs to retrieve data and/or rebuild data. Setting up similar procedures in your small business can save you money in the long run.

As for the laptop that crashed, we are still awaiting its arrival from tech repair which is still under warranty.

Keeping Your Business N Synergy

S-Corporations Compensation Revisited

This past week while getting ready for tax season, I had the chance to review some of the changes and requirements for S-Corporations (thanks to the IRS and NSA). One of the most common mistakes that S-Corporations make occurs in the area of owner/employee compensation. Typically owners of S-Corporations are considered employees that must take “reasonable compensation” when they perform services for the S-Corp. Once a reasonable compensation has been established, owner/employees can take additional income from the S-Corp as distributions that will not be subject to employment tax rules.

The main question(s) that arises are what is considered reasonable compensation, and how is that compensation validated. The best way to determine reasonable compensation is to look at what the market pays for similar work performed and possibly reviewing information from the employment section of the newspaper or websites. Structuring your compensation plan with your tax advisor will assist S-Corp owner/employees and ensure that their returns won’t come up for audit. Audits of S-Corps increased in 2006, and by taking the necessary steps owner/employees can have less worries at tax time.

Keeping Your Business N Synergy

Disregard the past IRS rules LLC’s

There will be some reporting changes for single member/single owner LLC’s (also known as disregarded entities) in 2009. According to a recent email notice received from the IRS, LLC’s that are considered disregarded entities will have to report employment taxes in the name and EIN of the LLC instead of the single member/owner. The change makes IRS Notice 99-6 obsolete whereas a single member/owner had a choice to use the either the name or EIN of the owner of the LLC. The changes only affect the employment taxes and not income tax reporting for LLC’s. Small business LLC’s that are affected by this change may want to seek the assistance of their tax professional for details on applying for a new EIN.

Keeping Your Business N Synergy

2009 Small Business Accounting Software

Earlier in A Tale of Two Software Freebies we took a look at the free versions of small business accounting software titles Microsoft Office Accounting Express and QuickBooks Simple Start. Well both software vendors have recently undated their paid software titles for 2009. Small business owners that are looking for a change or just starting out may want to take a look at some of the new features that both titles have included.

Microsoft Office Accounting Professional (MOAP)

MOAP has updated their offering to include income tax integration with major tax preparation software that will surely bring a smile to your tax professional’s face. MOAP has also added 20 plus new custom reports to give a small business owner more information about their business. Third party add on’s allow small business owners to accept credit cards online and integrate with E-bay.

QuickBooks Products

QB has two has two products (QB Pro, and Premier) for the small business owner depending on the market and size of your business. The Premier version has more features and provides more reports for small businesses. A major enhancement that caught my attention is the software now has Microsoft Vista certification as there were problems loading previous versions on Vista machines.

Both software is priced right for the small business owner so be sure to test drive them for your business.

Keeping Your Business N Synergy

The IRS Audit Results

In a previous post (see IRS IT Woes), we looked at some of the problems that have been occurring at the IRS. Well it appears that the IRS has a couple more issue that need to be ironed out regarding their operations. An audit report from the Government Accountability Office reveals internal control problems and financial management inefficiencies within the IRS. The main areas that need improvement are controls dealing with information security and the utilization of obsolete financial management systems.

The IRS contends that measures have been taken to improve internal controls and improve processes within the financial management systems. Will be interesting to see how these improvements work out in the coming year. Stay tuned.

Keeping Your Business N Synergy

Banking on Small Business

As the economic bailout continues to make its way through the U.S. economy, banks are “banking” on small business to give out the new loans. The only problem is banks are having difficulty finding borrowers. Part of the reason is many small business owners are feeling the bite of the slow economy and have cut back their borrowing needs. SBA loans dropped 30% this year as banks scramble to find creditworthy customers.

Creditworthiness is an important part of the issue when a small business owner considers a loan as a way to finance growth. Small business owners that already have loan or credit lines with banks (and they more than likely have been cut back) should keep an eye on their budgets so that loan payments can be made in the future. If you are a small business owner looking for a loan, lookout in your e-mail/mail box for deals from banks banking on you.

Keeping Your Business N Synergy

A Tale of Two Software Freebies

Last month at the accounting panel discussion, I gave the audience links to a couple of small business software titles that would give a small business owner a jump into the realm of accounting and reporting. Both titles are free and can be downloaded from the internet for use. Microsoft Office Accounting Express and QuickBooks Simple Start were the titles and we will take a look at each to see which one is the best for your business.

Microsoft Office Accounting Express (MOAE)

MOAE has the same look and feel as the current Office programs making the learning curve less steep (To me it looks similar to Outlook). A small business owner can track income and expenses, manage employees, customers and vendors and the owner can setup the business using wizards. MOAE also allows importing of data from QuickBooks, Excel or MS Money.

QuickBooks Simple Start (QBSS)

QBSS similar to MOAE in that it can also track income and expenses, organize employees, customers and vendors, manage payroll, and utilizes wizards in the setup. QBSS does not allow a small business owner to import data from MS Excel, Quicken, or MOAE.

MOAE and QBSS Technology

Both MOAE and QBSS have integrated technology into their offerings. MOAE includes seamless integration into other Office software (Word, Excel, and Outlook) and the software allows small business owners to reach online via EBay and PayPal integration. QBSS allows users to accept credit cards payments into the software, and create a website for online services.

Which is right for you?

That will depend on your needs as a small business owner in the start up phase of your business and the market that you serve. Accounting software should be viewed as a tool that can grow with your business so be sure that the future is taken into account in your needs assessment.

Keeping Your Business N Synergy

New Updates from Microsoft

Our friends over at Microsoft have a couple of new updates that may be of interest to many individuals and small business owners. The firs is a security update MS08-067 which affects many versions of the Windows operating system and server operating systems so be sure to download this update as soon as possible. Many individuals turn off their automatic updates and if that is the case you will have to go directly to the Microsoft website to download the update.

The other update is the unofficial death of the Windows Vista operating system. I came across an article that Microsoft recently revealed the next version of their operating system which will be called Windows 7. Be sure to check out the slideshow that provides screen shots of the new look and feel of Windows 7. Although similar to Vista, Windows 7 has made a great deal of changes that are sure to please new computer buyers when released sometime next year. If you are in the market for a computer and can hold off, waiting until this operating system is released may be a good thing.

Keeping Your Business N Synergy

Tax Provisions "Bail" You Out

This past week I had the pleasure to sit on a panel with other local accountants that spoke to the needs of small business owners and one of the main questions that attendees wanted answers was regarding how the small business would stay afloat after the passage of the bailout bill. The bailout bill had a great deal of tax provisions that were included (and I finally had a chance to take a closer look at) here are a few that will hopefully help bail out small businesses and individuals in this slow economy:

Individual Provisions

• Itemized and “above the line” deductions – state and local sales tax deductions, higher education tuition deduction, additional standard deduction for real property taxes extended through 2009
• Tax free distributions from IRA’s for charity has been extended through 2009
• Child tax credit floor falls allowing more taxpayers to tax the credit

Small Business Provisions

• Leasehold and restaurant improvements now eligible for a shorter depreciation cost recovery through 2009
• Charitable Contributions of food, books and computers extended through 2009
• New markets tax credit extended through 2009, encouraging more small business investment

Be sure to speak with your accountant regarding these new tax provisions and how they may affect your tax planning for 2008 and 2009 tax filing season. As always tax planning should be proactive and not reactive to the economic environment around you.

Keeping Your Business N Synergy

Let’s Be Reasonable

Recently a potential client posed a question to our firm regarding what kind of salary he should take for his new business. Although this may sound like a simple question, there are many factors that must be taken into account before constructing a compensation plan for a small business and their owners. The main factor that must be addressed is what type of business entity the business owner has chosen (sole proprietor, partnership, C or S-Corp) and this should be addressed in the planning stages with input from an attorney and accountant.

If the business is organized as a corporation, additional legwork must be done to ensure that the compensation taken by the officers/employees is reasonable. The IRS has recently stepped up their enforcement on corporations that do not provide their officers/employees with a reasonable compensation and it is important for a small business owner to address the following factors when developing a compensation plan:

• The financial condition of the company
• The roles and responsibilities of the company
• The salaries paid to other individuals in similar situations in the market

These are just a few of the factors a small business owner must address when structuring a compensation plan to maintain compliance with the IRS guidelines. Be sure that your compensation plan is outlined and detailed within your corporate information and there will be minimal chance that the IRS adjusts your compensation to what they feel is reasonable.
Keeping Your Business N Synergy

Tax Extenders Catch a Ride on Bailout Bill

Now that the tax filing extension is behind many taxpayers, it is now time to focus on next year’s tax season. I know that many are dreading the process that will start all over again very soon, but there have many quite a few tax law changes that many affect your business and individual tax returns. The passage of the recent “bailout” package contained a great deal of changes for the coming tax season. The major changes include making the penalty provisions the same for taxpayers and tax preparers and the major change of extending the AMT patch. Luckily the AMT patch extender was passed in time enough for the IRS to make the necessary changes to the tax forms for the upcoming filing season.

The majority of the changes in tax code will more than likely happen after the election and going into the 2010 tax year. Be sure to stay tuned in to properly plan for your tax future. As always remember that tax planning should be a year round process.

Keeping Your Business N Synergy

Remote Possibilities During a Tough Economy

Today the House voted on the $700B bailout and the vote turn out to be a bust. As the bailout busted, so did the stock market and add in the limited supply of gas, many individuals frustrations are running at a high level. With the limited supply of gas in our local area, many firms are finally seeing the light and looking for alternative ways to have their employees complete their work assignments. Working remotely is on the rise and for those who are looking for alternative ways to have their employees complete assignments here are a few low cost options that may be of interest to you and your firm.

Microsoft Office Live Workspace – great for managing projects and teams from virtually anywhere you have an internet connection.

Send This File – great for sending and receiving files of various sizes

LogMeIn – great for working remotely on another’s computer(s) to access software and systems not available on your computer.

These are just a few options that firms can use to work remotely and still get the job done. Many think that when individuals work remotely that productivity tends to slump, however in our existing economy the frustration associated with “getting” to work can be alleviated when individuals work remotely from their own personal locations.

Keeping Your Business N Synergy

Rise with Inflation

The present economy is very tough for everyone especially the small business owner. With all the business closures, mergers and buyouts by the big businesses on Wall Street, the trickle-down effect is taking its toll on Main Street businesses. Staying competitive in a very slow economy is important for a small business and devising a sound strategy will help a small business when sales slow. A recent survey conducted by The Small Business Research Board indicated that many small businesses are utilizing price increases to offset the inflationary pressures of the economy. This is certainly a way to offset one’s own expenses at the expense of your customers. Other ways to possible offset higher business costs may be to streamline your operational budget (yes you need to budget) and look for ways to cut costs by using technology. If all else fails however, an increase in your prices may be your only defense. Ultimately the small business owner needs to stay abreast of the changes in their industry and always plan ahead for slow economic times.

Keeping Your Business N Synergy

IRS Form Changes for Not-For-Profits

Now that the extension deadline for corporations has passed many accountants and tax professionals can focus on those personal returns and some not-for-profits (NFP’s) with tax years ending in December. NFP’ will get a kick out of the news coming from the IRS recently for there are some changes on the horizon for the next filing season. The first change is the redesigned Form 990 that now has an 11 page core form that must be completed by all NFP’s. The major changes are in the areas of governance, and compensation of officers. Other changes are driven by IR-2008-102 which eliminated the advance rulings that gave NFP’s charity status but then required them to support their status by providing the public sources of their funding to receive a final determination letter.

The changes will definitely provide the IRS with more transparency on NFP’s and also make NFP’s information more open to the public. I guess NFP acronym will have to mean New Filing Procedures for not-for-profits.

Keeping Your Business N Synergy

IRS Form Changes for Small Businesses

For those small to mid-sized businesses that are organized as corporations or partnerships, there are some changes coming for you after the 2008 tax year. According to recent information from the IRS, there are going to be some changes to the look of Form 1120’s and Form 1065’s that will increase the transparency about the ownership and relationships between entities that make up complex business structures . The main changes will be focused on the ownership issues (Sch. K for Form 1120 and Sch. B for Form 1065) and the changes will help the IRS better assess the risk on non-compliance in these areas.

What About The Sole Proprietors???

Well the IRS has created a website for you. The Self Employed Individuals Tax Center provides small business owners with a wealth of information for those starting a business, employment tax issues, filing and paying taxes and more.

For more information on how these changes will affect your business be sure to check the IRS website and speak to your tax advisor.

Keeping Your Business N Synergy

IRS IT Woes

As the summer comes to a close, many taxpayers are looking forward to taking that last summer vacation trip to wrap up the warm months. Earlier in the year the IRS made an attempt to provide taxpayers with a little bump of income to help stimulate the economy and maybe even pay for their summer vacations. Well unfortunately as some received their stimulus checks, the price of gas (among other things) increased. For those of you that did not receive your stimulus check, the reason may be blamed on the IRS.

A recent report by the Treasury Inspector General for Tax Administration indicated that the IRS may need to revise their software code to reduce the delays in reissuing undeliverable checks to taxpayers. Not all the blame can be put on the IRS however. If a taxpayer has changed their address it is important to fill out Form 8822 to ensure that your stimulus (and refund) checks make it to you on time.

Keeping Your Business N Synergy

Need an Accountant Hollywood??

Greetings to everyone out there in Blog Land hope all is well. It has been a little while since our last posts, with the extension deadline for S-Corporations closely approaching. There has been a great deal of things going on in the news lately in addition to the busy season around the office. A couple of news stories did catch my attention recently one was that American Idol Winner Ruben Studdard had the IRS placed tax liens placed on him for not paying his taxes and actor Paul Hogan of Crocodile Dundee fame is being probed by Australian tax authorities for attempting to not claim a tax residence.

It always amazes me how many taxpayers attempt to fly under the radar and evade paying their fair share. Maybe these individuals can get Jackson Hewitt to prepare their taxes although there may be a problem with them bill when they receive it. The moral to the story is being honest and always look for an honest accountant to guide you along the way.

Keeping Your Business N Synergy

Is Your City Business Tax Friendly

Big four accounting firm KPMG recently conducted a study that names the U.S. cities (and territories) that have the most favorable tax structures for businesses and the results are interesting. The results were broken down between large cities (populations over 2 million) mid-sized cities (population between 2 million and 500,000) and small cities (populations between 100,000 and 500,000). Did your city make the list? Here are the top three from each category:

Large Cities
San Juan, Puerto Rico
Baltimore , Maryland
Atlanta, Georgia (good Job Atlanta)

Mid-Size Cities
Omaha, Nebraska
Greenville/Spartanburg, South Carolina
Little Rock, Arkansas

Small Cities
Saginaw, Michigan
Cheyenne, Wyoming
Cedar Rapids, Iowa

One thing for sure is that if your city is not on the list, there quite possibly is a city in close proximity of you.

Keeping Your Business N Synergy

Cool Tax break for a Hot Summer

The summertime brings vacations, cookouts, fireworks and summer camp to the minds of many taxpayers. It is also a good time to lookout for summertime tax breaks. A recent IRS newsroom article provides tax payers with children in summer camp a potential tax credit. The cost of day camp (sorry overnight campers) will qualify taxpayers as an expense towards the child and dependent care credit. The taxpayer’s child must also be under 13 years of age and there are additional rules that also apply. Be sure to speak to your tax advisor to see if this cool tax break is for you.

All part of your mid -year tax planning for 2009. Be sharp as a tack this tax year.

Shopping for a Shopping Cart

For those small business owners that sell products (and services) online, the use technology is an important part of your business operations. It is very important for all your systems to work together especially when those systems are from different software vendors. The main component of an online sales system or e-commerce site is the shopping cart function. The shopping cart functions with all of your back office accounting and inventory systems to track revenue and goods sold.

It is important for the e-commerce business owner to have a point of sale (POS) system that fully integrates with your accounting and inventory systems for accuracy and efficiency. Tech savvy accountants can assist you with finding and deploying the correct POS system for your business. If your small business uses QuickBooks, be sure to check out their Solutions Marketplace for software that is compatible with your accounting software too.

Keeping Your Business N Synergy

Tax Return….Ah the Good Ole Days

Here is something that many of the taxpayers may get a little kick out of. It is a copy of the first tax return that was ever filed in the US. Take a quick look at how small the tax return is compared with the returns taxpayers file today. With all the talk about how the Congress is trying to simplify the tax code, there have been over five thousand changes in tax laws since 1986. Many changes have resulted into new tax forms and the simple 1040 tax return instructions is around ninety-two pages.

Now that it is July, many taxpayers don’t have taxes on their mind, but this is the best time to have a little mid-year tax check-up to ensure that everything is on track for year-end. There have been quite a few changes since last filing season and the AMT will have to be revisited by Congress again this year. Be sure to speak to your tax advisor so you can return your taxes to the good ole days.

Keeping Your Business N Synergy

Small Business Economic Worries Continue

Small businesses are still quite pessimistic about their futures in the current economic environment. According to the National Federation of Independent Business, small business optimism fell to its lowest level since the 80’s. One bright spot from the survey however is that many small business owners are still spending money and hiring employees to keep their operations going.

Check out the details at the NFIB’s website and be sure to join their site that will provide a small business owner with a wealth of information to assist in keeping your business in synergy through these tough economic times.

Time to Cut Your Extensions

According to a recent IRS news release, the due date for certain business returns will be cut from six months to five. The change is an effort by the IRS to assist personal tax payers with the burden of preparing their personal tax return by the extension deadline. The current business extension due date of October 15th is being changed to September 15th and provides individual tax payers time to receive certain schedules that are needed to prepare personal returns due a month later.

Does this affect your small business and you?

It all depends on your business organization. For S-Corp owners there is no change as the six month extension deadline already falls on September 15th. Be sure to speak to your tax advisor to see if the change affects you.

Keeping Your Business N Synergy

Gotta Hate Mondays

Interesting news today as Microsoft stops selling their XP operating system to retailers and major computer makers. The main option now is Windows Vista for those interesting in purchasing a computer. If there happens to be a small business computer retailer in your area, there may still be an option to purchase a system through the end of January. Another option is to focus on new ultra low cost PC’s that not only will have XP, can also save you money. Guess the major decision for many is to buy now or wait till Microsoft releases Windows 7 in 2009. Feel free to post your thoughts.

Keeping Your Business N Synergy

Is Your Cash Coming or Going?

If the slowdown in the economy is affecting your small business, improving your cash management may help when sales are slow. I quick review of a small business’ cash collections policies will reveal if changes (such as interest on late payments, or requiring deposits for jobs) will speed up cash coming into the business.





On the cash disbursements side of the equation, reviewing the costs that vendors charge for goods and services and possibly renogiotiating your rate will keep more cash in your pocket. Small business owners should also consider investing excess cash in the bank in a interest bearing account and have their money working just as hard as hard as the owner.

Keeping Your Business N Synergy

IRS Indigestion helps Taxpayers

The IRS has gas on their mind and this is great for the individual and small business taxpayer. According to a recent newsroom article the standard mileage rate will increase through December 31st 2008. The new 6-month increase is a direct result of the economy and high fuel prices. The new rates go into effect on July 1 2008 are as follows:

Business - 58.5 cent per mile

Medical Moving – 27 cents per mile




The mileage rate for charitable contributions (14 cents per mile) remains unchanged. Be sure to speak to your tax advisor regarding this change and taking the standard mileage rate for this year.

Keeping Your Business N Synergy

Paperless Ideas for Small Businesses

Many small businesses have mountains of paperwork to file and the task of organizing, filing, and archiving can take away from growing the business. Coupled with the costs of off-site storage, managing the information can become a job within itself. One way a small business can cut down on the costs and time managing their data is to embrace technology and go to a paperless filing system.





The first step is to stop receiving paper statements from your bank and credit card companies. The statements can typically be downloaded and saved as a PDF file. For archiving and sharing those files (with your accountant) and others be sure to check out Microsoft Office Live Workspace and Windows Live SkyDrive. The tools are free and may help small businesses cut down on the time it takes to organize their important information.

Keeping Your Business N Synergy

Mixing Business and Social

The talk of “networking” is always on the lips of many small business entrepreneurs to meet and possibly generate new business. The more traditional methods of networking usually mix business with socializing to reach out to small businesses in a particular area. The web has brought about a new avenue of networking that is still able to integrate business and socializing with the introduction of social networks. These social networks have been the craze for many individuals to meet and socialize, but now small businesses are also using them to promote their businesses.

It does not stop there. A quick search of the internet produces a wealth of information about how social networks are being used by small and large businesses alike. Here is a special site that may be of interest from Dell. It is a free online course on how to use social networks to promote your business. Enjoy!

Keeping Your Business N Synergy

Running a “Lean” small business

Recently there have been quite a few networking meetings in our area. Many of the themes of those meeting were how small businesses could operate in the slow economy. The majority of the solutions included increased time and effort in seeking out new businesses. The solutions also leveraged technology to improve the flow of the small business operations.

Technology driven workflow solutions should be an integral part of a small business owner’s plan for the future. These solutions can improve small business operations in the areas of business development, marketing, finance and accounting. Technology may be the key to operating a lean small business during these rough economic times.

Keeping Your Business N Synergy

Employee or Independent Contractor….IRS knows

For many small business owners the mistake of misclassifying employees as independent contractors (IC) can be a costly one. When one factors the interest and penalties for not withholding taxes, it can cost some small business owners the business itself. The IRS is focusing more efforts on ensuring compliance with the laws regarding employees and IC’s including partnering with states to share payroll tax data, better matching programs that will match Form 1099’s with payments, and increased audits of payroll data.

From the employee/IC side of things, any taxpayer that may think that an employer is misclassifying them as an IC can file Form 8919 with their tax return. This will allow the taxpayer to avoid paying self employment tax on their earnings. Check with your tax advisor for details of who an employee is versus and IC.

Keeping Your Business N Synergy

Planning in Economic Downturns

It has been about a month since the last tax return was filed for tax year 2007 (excluding those that filed extensions) and many taxpayers are relieved that the stress is over. Now is a great time to consider mapping out a strategy for 2008. Economic downturns coupled with rising consumers prices, make tax planning an important part of your over all savings and investment plans.

For small business owners , Microsoft’s Small Business Center provides a short but informative article on ways to survive during…dare I say the “R” word recession. Feel free to post any additional ideas that you would like to share.

Keeping Your Business N Synergy

The Ole Give and Take

By now many taxpayers are in the process of receiving those economic stimulus payments from the IRS. This is under the assumption that you have filed your tax return for 2007. If you have not it is important to file your return before the extension deadline to ensure receipt of your payment in 2008. So far about 7.7 million checks have been sent out. Be sure to check the IRS website for answers to any questions you may have regarding your economic stimulus payment.

As the government sends you a stimulus check many ponder how they will spend it. More than likely the money will go right into your gas tank. The taxpayer is caught by the ole give and take again.

Keeping Your Business N Synergy

Know the Rules for Summer Help Hires

Now that the spring has sprung, summer can’t be too far away. This will bring many young job seekers, looking for temporary work that the summer months bring. It is important for the small business owner to know the rules when hiring in the summer. Here are a few tips to get your business’ summer search started:

1. Withholding taxes is done on ALL summer employees (yes summer help is considered an employee)

2. Parents with children can allow them to work in the business from the ages of 14-21

3. Check state labor laws for additional details regarding summer help.

Hope the information puts your business on the right track to a healthy summer season

Keeping Your Business N Synergy