Microsoft’s Halloween Trick

After providing the technology world with a potential treat earlier this month with the debut of Windows 7, Microsoft closed out the month with a pretty slick trick for their Office Accounting users. According to an e-mail that I got early Friday morning, Microsoft will be discontinuing their Office Accounting product on November 16th of the coming month. This only gives many OA 2009 customers a few days to move their files to another small business accounting software title and that can be quite an expensive and labor intensive task. For me, however I can’t say that I did not see the writing on the wall especially since they stopped selling their MS Money product earlier this year.

Microsoft will still offer support for their product as per the support guide lines in their policy. Add on services that came along with Office Accounting (EBay, Equifax credit profile, tax mappings, and online banking) will be discontinued by December 15th, 2009. For many small business owners this change could be an indication that the time to look into another way of performing your accounting function is in order. There are other small businesses off the shelf software titles that can be used; however there is still the issue of yearly upgrades, costly “advisors” to help you setup the software, and the risk of downtime during the transition and bug fixes. Another option would be to use an online-based, on-demand accounting system that works collaboratively with your accountant. Either way, if you are a small business that uses Microsoft’s Office Accounting product your days are limited. Happy Halloween!!

B. N. S.

QuickBooks Problem….Solved??

Recently I did a post announcing the newest release of QuickBooks 2010 and according to a news article I came across today, this may be a good time to upgrade your software if you have not done so already. According to the article there is a security issue with older version of QuickBooks (2006 and Enterprise 6.0) that is related to Microsoft’s Active X technology. According to Intuit, the makers of QuickBooks, the security issue has been fixed (even though older versions of QB’s are not supported by Intuit) and the 2010 product has been updated also. Kind of makes a person wonder if there is a better way of keeping your small business books? If there are security problems with off the shelf software, I wonder if using an on-demand internet based accounting solution would be more efficient.

With an on-demand accounting solution gone are the days of upgrading your software every year (or three years) because the software maker no longer supports your version, gone are the countless software updates that have to be completed so that your software can operate efficiently. Also gone are the days of working around your accountant’s schedule so that they can make their adjustments to your books and then send them back to you. An on-demand solution may be in your future if you are ready to make the change to the newest technology available with possibly a lower cost of ownership. Be sure to find out the pros and cons of the new technology for yourself with the following article. Enjoy.

B. N. S.

Weekend Shopping

I was in the store this weekend picking up some snacks for the Sunday football games and could not help but notice that some of the sizes of my favorite snacks had been reduced considerably. A 16oz size of snack crackers has been reduced to a 13.4oz and the price is the same or at many times more than what it had been before. I thought to myself that I would have to pass on those snacks and decided to make my own.

When I get into the office this morning and check the newswires, I couldn’t help be click on the following article that essentially deals with my weekend experience. I guess the lesson to be learned from the story and my own experience is to be a more cost conscious consumer.

B. N. S.

Debt Forgiven but not Forgotten

As we continue down the road toward recession or recovery (depending on one’s point of view), there still continues to be a great deal of people who are having problems paying off their debts. Whether it is a house, car, or some other type of property, the process of paying off one’s debts can become quite stressful especially in a cash strapped economy like the one today. From a tax standpoint, the cancellation of a debt can become a bit tricky, but hopefully after reading this post, you will have a little more insight into how the process works.

According to the IRS via Publication 4681, a debt can include any indebtedness for which you are liable or which is attached to property that you hold. In regards to property, cancellation of debt occurs when foreclosure proceeding occurs on the property, the property is repossessed, the property is returned to the lender, or you abandon the property. When debt is canceled by a federal agency or a financial institution amounting to more than $600, you will receive a Form 1099-C showing the amount for the cancelation in Box 2. Typically the amount is taxable as income.

There are additional exceptions and exclusions of debt that would not be taxable, the most major one being the exclusion for principal residence indebtedness. Taxpayers can now exclude up to $2 million in qualified personal residence indebtedness. Be careful, if you used property to secure a debt and the lender takes all or part of the property to satisfy the debt, the transaction can be treated as a sale which could make you have a taxable gain. Be sure to speak to a professional tax advisor before making any decisions regarding the cancellation of debt.

B. N. S.

Looking Thru Windows 7

Well the week is finally upon us. The release of Microsoft’s Windows 7 product will be in stores on October 22 and is sure to bring a great deal of curious shoppers out to see what all the software can do. Windows 7 comes in three different versions (Home, Professional, and Ultimate) and consumers can also purchase the system in laptops and desktops pre-loaded.

So for those out there who hated Windows Vista and/or were still using XP (because you could not use some of the older software), now may be a time to step up into the new technology millennium at upgrade your operating system and your additional software titles to ensure your computer systems keep you productive.

B. N. S.

The Last Minute

So today has been a rather hectic day around the office since the personal tax extension deadline is tomorrow. Couple that with all the tax changes (i.e. first time home buyers, new auto deductions and more) that will expire in the next month, there are a lot of last minute planning strategies many taxpayers are trying to implement. I did however get to take some time out to read my daily tax and accounting e-mails and the one that caught my attention the most was an article regarding changes that will limit the deductions of many sole proprietors (Sch. C filers). According to the article, there may be some changes in the coming years on the amount of deductions that Sch. C filers and the IRS has a few options how they will do it. Be sure to check out the article and let us know your thoughts.

Well back to the tax mines, happy last minute tax filing everyone.

B. N. S.

Tech Updates This Week

There have been quite a few updates in the technology world this week and here are the one’s that caught my attention:

• Find Out if Windows 7 is right for your business
• Sage Software Offers a Free version of Peachtree Accounting to Atlanta flood victims
• Finally I came across a whitepaper detailing how cloud computing will cost small business owners less than off the shelf accounting packages. For more information regarding the whitepaper, feel free to contact us via our website
Enjoy

B. N. S.

Telling Signs of the Economy

The economy may be turning many honest taxpayers into tattle tells according to a recent article I came across. The Tax Relief and Health Care Act of 2006 created the Whistleblower Office and the office has seen a significant upswing in the amount of anonymous tips from law abiding taxpayers of those who shall we say like to live on the wild side of the tax law. Recent changes to the law have increased the payments from 15% to 30% maximum and the increase is certainly making taxpayers feel compelled to tell on those who want to evade taxes. The only problems with the new Whistleblower system is the time it takes for a claim to be processed and protection for employees who turn in their employers for evading taxes. All in all the systems appears to be a new option for many taxpayers to find additional money in this tough economy.

B. N. S.

New Product or New Way of Working

There were two events that happened this past week that are really the driving force behind this blog post, one is the introduction of Intuit’s newest QuickBooks 2010 offering. The marketing e-mails that I have received have promised that the QB2010 version is the best yet and it will save accountants more time when working with their clients due to the enhanced features. For small business owners that are interested in how QB2010 will make them work faster and smarter be sure to take a look at this web review of the product. At the end of the review there is also a way for QB2009 purchasers who bought their software 60 days before the QB2010 release to upgrade their product to the newer version for free.

A free webinar (for my CPE credits) is the other driving force that provided me with a viable option and a new (possibly better) way of performing accounting functions for clients, that allows accountants and small businesses both to work collaboratively. The webinar was titled “How to Transform Your Client Accounting Services Practice through Cloud Computing and On-Demand Accounting” and it explained how accountants and small business owners can use online accounting services instead of boxed software that would allow each to work virtually anywhere, have instant access to current numbers, and the piece of mind that the data is secure. Although the webinar was geared for accountants, small business owners may gain some insight into how cloud computing/on-demand accounting is different (and maybe better) than boxed software or a hosted box software solution.

So as a small business owner which strategy fits your business model? Feel free to post your comments.

B. N. S.

A Flood of Assistance

As many of you have heard on the news, in the past week the Atlanta area received a historic amount of rain that left many of the metro counties flooded. Many of the roads in the local area have been washed away and people’s houses are total losses. The vast majority of these individuals did not have flood insurance and are in great need of support and assistance. Representatives from FEMA, GEMA and the Red Cross are frantically assisting these individuals but more help is needed. I would ask anyone who is able in these trying times to please donate to your Red Cross for victims of the flood and if you are in the local Atlanta area, maybe go out and help in the cleanup efforts.

Additionally for those individuals (or businesses located in the flood areas) that are on tax filing extensions, the IRS is moving the tax filing deadline to Dec. 17th. The postponement is for return filing, tax payment and certain other time-sensitive acts otherwise due between Sept. 18 and Dec. 17. The IRS will also waive the future deposit penalties for employment and excise taxes due on or after Sept. 18th. For more information speak to your tax advisor or stop by the IRS website and put “Georgia Flood” into the search box at the top right hand corner.

B. N. S.

SMB’s Speak Up

This morning I was able to read a pretty revealing survey report sponsored by Netsuite regarding business leaders’ outlook on the economy and the direction they would be taking their firms to survive in the “new economy”. Survey respondents represented over 600 small to mid-sized businesses (SMB’s) and were from all different types of industries. The interesting thing is that the majority of their answers were the same. SMB’s were focused on cutting cost in conjunction with increasing revenue and these strategies are sure to help improve their cash flow.

Specifically SMB’s cost cutting strategies were reducing overhead, improving productivity and streamlining operations. Revenue generating activities included broaden product offerings and increasing revenue from current customers. SMB’s also showed an increased interest in software as a service (SaaS) and cloud computing as a way to improve productivity and reduce overhead.

Can some of these strategies work for you? More than likely yes, so be sure to stop by Netsuite and download the survey report yourself.

B. N. S.

Changes to Tax Filing…Coming Soon

While going through my moring e-mail news I came across some interesting information that islikely to affect everyone who files taxes. According to a report by the Treasury Department’s Inspector General for Tax Administration (TIGTA) they recommend that mandatory electronic filing of individual tax returns by professional tax preparers become a requirement by law. Currently about 43% of the returns filed are filed on paper (for tax year 2008). The IRS feels that by mandatory electronic filing of individual returns, the error rate for returns can be lowered and the IRS can operating more efficiently. The IRS will also begin using scanning technology to convert paper returns to electronic format.

What doe this mean to you?

More than likely if the law is passed, it will mean that the IRS will cut back some of their staff, those paper retuns that have errors will be caught faster with scanning technologies, and those professional tax preparers that do not want to embrace technology may have to look for other ways to bring in more revenue. The IRS is currently asking Congress for authority to make these changes as part of their 2010 fical year budget, so the changes are right around the corner.

B. N. S.

Tech Tools Keeping You Productive

Earlier this week I was speaking to a friend of mine assisting him with getting his small business off the ground and he mentioned that he had recently purchased a merchant account for his business. He will be using the merchant account to sell his motivational CD’s and other products but his problem was how he could sell his products while away from his office at seminars and conventions. That got me thinking if there was a way to use a smart phone as a credit card terminal. I have yet to find a way this can be done with a Blackberry phone, but did come across a couple of iPhone apps that will allow users to use their phone as a merchant terminal. The three that were at the top of the list are:

• Credit Card Terminal by Inner Fence, LLC
• iSwipe Pro Credit Card Terminal by AppNinjas, LLC
• Billing: Credit Card Terminal by Spartadata

As with any iPhone app (or any app for that matter) be sure to read all the fine print and maybe some of the reviews regarding any hidden fees that are not initially mentioned. I found the apps to be a great addition to any small business owner’s productivity toolkit because you can accept credit cards virtually anywhere from any customer, and this can improve your cash flow and allow you to operate your business at a higher level.

As for my friend we are still searching for a Blackberry app that will allow users to do the same. If anyone has any ideas feel free to post them.

B. N. S.

IRS Plans to Retire

Those small business owners that are interested in establishing retirement plans for their employees, the IRS is here to help. Recently the IRS setup a retirement plan website that can assist small business owners with setting up tax-favored retirement plans, maintaining the plan, and fixing any errors that may occur while administering the plan. Setting up a retirement plan has many benefits for both the small business and their employees. Small businesses can benefit from a retirement plan because their contributions being tax deductible, there is a potential for tax credits for setting up a plan, and the possibility of hiring and retaining better employees. Employees’ benefits can include deferred taxes on plan contributions, investment gains on plan assets are not taxed until distribution, and retirement plan assets can be transferred from one employer to the next. These are just a few of the benefits of setting up a retirement plan, be sure to stop by the IRS retirement plan website and see how setting up a plan can benefit your small business and your employees.

B. N. S.

iPhone Productivity

For those iPhone users, I came across a nice little update app that is sure to make you productive while away from the office. The Quickoffice app has been upgraded to support Microsoft Office 2007 so now iPhone users have the ability to edit, cut/copy/paste, and send Office 2007 files to and from their iPhones. The Quickoffice app will only run on iPhone OS 3.0 so if you have not upgraded your iPhone’s operating system now would be a great time to do that too. This app in conjunction with the file saving app mention in an earlier post will save many small business owners a great deal of time when they are away from their offices and need access to mission critical documents. Definitely one to check out.

B. N. S.

More on Banking

There has been a great deal of talk lately regarding the large amount of fees that banks charge consumers and business owners for their accounts. From the accounting discussion groups that I belong to, to the many of my clients whom I provide bookkeeping for, everyone is beginning to get feed up with the many fees banks charge for access to our money. Some of the most common fees I have seen on bank statements are cash deposits fees, not maintaining a minimum balance fee, transactions fees, and of course the monthly maintenance fee.

Well there is hope for the consumer and business owner who is cash strapped at the present time, one thing you can do is go to your bank and see if they have different accounts that do not charge all those unnecessary fees . Another option is to shop around for another bank in your area that offers totally free checking and saving accounts. If there are not any of those options in your area, you can also consider an online bank. These banks usually have free accounts due to the fact that they operate with less overhead than a traditional bank. Either option you choose can possibly save you hundreds of dollars a year.

B. N. S.

Online Banking Dangers

I hope everyone had a safe and enjoyable holiday weekend. Now it is time to get back to business and here is some good information that can help individuals and small business owners keep their bank accounts safe. If you are one that uses online banking, be sure to check out this video and article for some great tips on how to not be scammed by those unscrupulous cyber-criminals out there. If you have ever received one of those suspicious e-mails saying that it is from your bank, make sure you contact your bank first before clicking any of the links contained within the e-mail. The majority of the time these e-mails are from hackers attempting to get your personal information.

B. N. S.

Auditors are getting social

For the taxpayers out there who feel they can outsmart their state auditors, beware? According to a recent article in the Wall Street Journal, tax agents in Nebraska, Minnesota, and California (probably are more states that will jump on the bandwagon) are taking their enforcement tactics to the internet. Taxing authorities in these states are beginning to use social networking sites to find and locate tax cheats who have moved out of their state by finding information about them on sites like MySpace and FaceBook. The auditors still have to follow the rules of the social networking site (such as they cannot befriend a person on Facebook using false information), but the use of tracking tax cheats via social media and Google is beginning to catch on. More states are considering adding social media tracking to their arsenal for locating tax cheats and the IRS declined to comment on if they were using social media (wink, wink). Be sure to check out the article and see how some people got caught.

Moral to the story is to seek out a professional tax preparer and pay what you owe, for the tax man is coming to get you and he has a new way to track you now.

B. N. S.

Smart Technology

Continuing on the technology theme of the last post, I came across a possible jewel for those small business owners (and tech savvy individuals) with smart phones that need information while away from a computer. If you are taking your small business paperless, or have been thinking about it, be sure to check out Filesanywhere.com. With their service you can access and share your files with anyone, backup and synch files, and collaborate online.

Now what makes the service a jewel is that the company has recently added an iPhone app allowing you access to your files and services while away from your computer. They also have a mobile login that allows other smart phone users access to their files and share them with others. We will be testing the service over the weekend and will post a brief overview of how it works.

B. N. S.

Phone Smarts

Your phone is getting smarter according to an article Fortune magazine. The demands for smart phones are increasing and not only are they for the Wall Street business types, but consumers and small business owners are beginning to buy in. The two major players are RIM who makes the Blackberry (also known as the “crack” berry) and Apple, makers of the iPhone. Each has seen sales gains in areas you would not think they would. RIM’s sales gains are from consumers and businesses are starting to see the iPhone as viable option. I was quite intrigued by the small test you can take to see which phone is right for you. Be sure to check out the test and see which phone is the smart one for you.

B. N. S.

Extra Credit

So many people have to rely on their credit cards since banks are really not lending money at the present time. There has been a bit of a change in the relationship you have with your credit card issuer, thanks to a new law. The majority of the law is consumer friendly and will hopefully allow individuals and small business owners a little more breathing room to maintain their creditworthiness. Don’t think that the banks won’t retaliate and less people will be able to qualify for a credit card. Check out what Citi and AMEX have in store for some of their customers. For now the law is in your favor.

B.N.S.
(Business N Synergy)

A Bad Rap

Earlier this week a tax client sent me a couple of You Tube links that I found quite amusing. At some point in time there was a rap contest to see who could come up with the best Turbo Tax Rap video. There were quite a few out there on You Tube, but the one my client sent me was one that hit home a message that anyone can prepare taxes with Turbo Tax and that many professional tax preparers are losing money and clients to the software giant. After you watch the video be sure to check out another video that shows our own Treasury Secretary, Timothy Geithner stating that he relied on Turbo Tax to prepare his tax returns (the returns under question where he underpaid his tax). Guess either way you look at it Turbo Tax gets a bad rap.

Moral: Trust a tax professional before you trust software.

Keeping Your Business N Synergy

Microsoft Office Accounting Express Review

QuickBooks may have a formidable opponent for their Simple Start software offering. Microsoft’s Office Accounting Express was recently reviewed by PCMag.com and was given very high marks by the reviewers. Both QB’s Simple Start and MS Express are geared toward the small office home office (SOHO) segment of the small business market or for those who are transferring from pen and paper or spreadsheets to perform their accounting functions. The functionality within MS Express goes beyond that of QB Simple Start thus allowing the SOHO business owner more flexibility and efficiency that will save them money in the long run (did I mention that MS Express is free to download here).

Be sure to read the review and see for yourself why MS Express is better for your small business. Also be on the lookout in the coming months for brief online presentations on how to use MS Express in your SOHO business. The presentations will be posted on this blog and our company's website.

Keeping Your Business N Synergy

Banking on your bank

Banks are supposed to be one of the best places to keep our money. With all the changes in the banking industry recently, the choices of banking institutions has shorten, making it tougher for individuals and small businesses to find a bank. Although many banks received bailout out money, they are still looking for ways to “mine” revenue from their customers. A recent article on Yahoo Finance provides a wealth of information about banks and their internal processes and how they make money off of all of us. Some of the information I already knew about but others were rather shocking. I guess the bottom line is to find a bank that does not nickel and dime you for everything and make sure that you take some time out to read the details of your account agreement (even though your agreement can change like the season).

Keeping Your Business N Synergy

Small business tax break for business equipment

For those small business owners that need to purchase equipment here are the details of the tax law passed earlier this year.

The law extended the $250,000 limit for the first-year
expensing of new or used equipment purchased for use in
your business. This deduction is gradually phased out
once you purchase more than $800,000 of equipment in
2009.

In addition, brand new equipment, software, and
qualified leasehold improvements can qualify for 50%
bonus depreciation if placed in service by the end of
2009.

The two benefits can be combined on the same purchase.
For example, you can use the expensing option on a
piece of equipment and apply bonus depreciation to the
remaining cost if the property qualifies.

Be sure to speak to your tax advisor to ensure your property qualifies.

Keeping Your Business N Synergy

Scams, Shams, and Fraud

While going through my e-mails this morning, I came across an “urgent” e-mail from my bank stating that as part of their security measures, the bank had screened my account. The e-mail goes on to say that to restore my account I need to click on the link to sign into online banking. The e-mail itself contain all the information of a legitimate e-mail from the bank (including the bank’s logo) however, the link to sign into online banking did not contain the banks web address nor did the e-mail address contain the bank’s name. Typically when an individual or business receives one of these e-mails you should not click on the links nor enter any of your personal information.

Yes people due to the economy the scammers are coming out of the wood work to take your hard earned money and they will even impersonate the government. Here is an interesting article that I came across today where scam artists are impersonating the IRS in another “phishing” scam. Before you take any of the action described in any e-mail you receive, be sure to call the institution that way you can protect yourself and your hard earned money.

Keeping Your Business N Synergy

States Getting Salty

Yesterday was the last day of the sales tax holidays here in Georgia and although it is too early to tell if it was a success, back to school shoppers were certainly taking advantage of no sales tax. Quite a few states have sales tax holidays scheduled for the summer’s end to assists consumers in saving money. Although the holidays stimulate the economy, many times it is at the expense of the state’s revenue departments. When these departments go without the necessary revenue, we the consumer usually loose. The state revenue departments do have one option they can exercise and that is raising tax rates.

According to a recent report by CCH, state and local taxes (S. A. L. T.) are on the rise so don’t be surprised if you are paying more for items in the coming months. If you were curious to see where your state’s S. A. L. T. rate is be sure to take a look at this map.

Keeping Your Business N Synergy (and salt free)

Finding Your Tax Records

There are times when we as taxpayers misplace some of our important tax documents making it difficult to accurately prepare our taxes. Casualties such as a flood or fire can destroy tax documents and if there was not a data backup plan in place, recreating documents can become very time consuming. If a taxpayer finds themselves in a situation like those previously mentioned; the IRS can be a good place to begin the task or reconstruction.

If you have lost your prior year tax documents, be sure to download and fill out Form 4506-T to request copies of your prior year’s tax returns. This is a good starting point to reconstruct your data so that you and your tax professional can prepare your returns. Form 4506-T can be used to request personal, business, and payroll tax forms and the forms can be certified for court or other administrative proceedings.

Keeping Your Business N Synergy

Working Virtually Anywhere

Over the weekend there was a good article for small business owners in my local paper. The article dealt with the demand for virtual assistants by small business owners and how that demand has continued to grow (even in this economy). If you don’t exactly know what a virtual assistant or “VA” does be sure to check out the International Virtual Assistants Association (IVAA) for details. In a nutshell a VA provides a small business owner with the necessary “back office” administrative services via the web so that the owner can focus on running their business.

VA’s can provide assistance in the areas of administrative, creative, technology, and financial skills and since VA’s are independent, the cost to a small business owner is less. Since VA’s work in the “virtual” world, small business owners can contract with multiple VA’s that can be spread across any boundary. The article got me thinking about the services that I provide and in many cases I guess I would have to consider myself to be a VA. Changes in the economy are causing small business owners to think of ways to cut costs and keep more of their hard earned money. Working with a VA or a firm that offers virtual services may be the key.

Keeping Your Business N Synergy

Georgia Refunds…Rotten Peaches

There has been a great deal of news on Georgia circulating lately and that made me feel that focusing a blog post specifically on Georgia would be a good idea. Typically being the bearer of bad news is not a desirable position to be in, but many Georgia taxpayers may already know about the state the economy in Georgia is in. As of July 15th, the Georgia Department of Revenue has not sent around 400,000 tax refunds to taxpayers and the interest clock is ticking. In a way there is a silver lining behind the dark cloud in that taxpayers finally will receive interest on money they have loaned the state the only question now is when will taxpayers receive their refunds and interest payments (which will come in separate checks)?

There is some good news coming out of Georgia however. The state will offer sales tax holidays for back to school shoppers from July 30th to August 2nd. Now wouldn’t it be nice if the Department of Revenue could give the taxpayers their money so they could shop for back to school? We will simply have to wait and see.

Keeping Your Business N Synergy

Wamu/Chase, Economy and Change

Thanks to many small business owners and taxpayers bailout money, there has been a great deal of consolidating in the banking industry. One of the major consolidations is the merging of Washington Mutual (Wamu) and Chase banks and the change will have an effect on a lot of small business owners and individuals. If you have accounts with Wamu and you also use financial software like Microsoft Office Accounting, QuickBooks, or Quicken there are some important dates to keep in mind:

July 23 – be sure to schedule your payments and transfers online via your Wamu account or pass this information onto your bookkeeper to processing.

July 24-25 – you will be able to view information online at your Wamu account but you will not be able to make online payments or transfers

July 26 – All Wamu accounts will now transfer to Chase.com

For more information on the Wamu/Chase changeover be sure to go to the Wamu website.

Keeping Your Business N Synergy

A Little Humor (and I do mean little)

Poking fun at the economy is quite hard considering all the bad news that is occurring lately, but I did come across an article that makes a pretty good attempt. The article is entitled “Top 12 Indicators That the Economy Is Still Bad” and although the article does deal with some serious issues, the ending may give you a chuckle while reading it at your desk.

The main point for small business owners in this economy is to stay focused on streamlining their business processes and operations and look for additional ways to bring in more revenue. So now is a good time to take a look at your strategies and make sure that they are still viable in this economy. A slow economy is a great time to think outside the box and go against the grain. So take that leap of faith and it may produce the results you are looking for.

Keeping Your Business N Synergy

Your New Financial Advisor….The Government

If the government has it way, taxpayers will have a new financial advisor to assist them with their saving initiatives. There is current proposed legislation that would create the Consumer Finance Protection Agency (CFPA) and this agency would create a savings account for you that would automatically take your tax refund and deposit it into the account. Additionally any increases in your pay scale would also be added to the savings account thus the taxpayer would not have to worry about building a sound foundation of savings.

The rationale for creating the agency is that many taxpayers need the protection of the government from unscrupulous companies in the financial and credit markets and that most taxpayers need guidance when it comes to saving money. Many accountants and financial advisors feel that there is a better way to go about educating taxpayers about saving. Be sure to post your comments and opinions about this potential legislation and also write your congressional leader to express your opinions for or against.

Keeping Your Business N Synergy

Accounting Software Myths

Many small business owners use accounting software to run their businesses so that they will have the necessary information they need to make business decisions and file their taxes. Most software companies that advertise their products make the products appear to be so easy to setup and operate that they make claims that anyone can take the software right out the box, load it, and they are off and running. From an accountant’s standpoint, this is typically not the case.

Doing “clean up” work has become a lucrative area of specialization for many accountants and that got me to thinking about how software companies market their products to small business owners. I came across an interesting article about the myths of QuickBooks (although you could place any small business software title in its place) that I found interesting. The main point of the article is that if the software is not setup correctly from the start by a person with an accounting background, the end reports will be useless to the small business owner. Be sure that if you are a small business owner planning to use accounting software that you have it setup properly from the start. Proper setup will ensure that less dollars are spent down the line.

Keeping Your Business N Synergy

Your Clunker is worth cash…maybe

I hope everyone had a wonderful holiday weekend and got to relax and spend time with friends and family. While at a barbecue over the weekend, the topic of taxes came up when talking around the fire pit. Many individuals were asking about the new Cash for Clunkers Act and how it works for those interested in purchasing a new automobile. Here are the details:

The Consumers Assistance to Recycle and Save Act (Cash for Clunkers) allows taxpayers who purchase a new vehicle a voucher worth up to $4500 for their old automobile. The goal is to boost sales of newer fuel efficient vehicles and clean up the environment. Automobiles that are eligible for trade in must be in drivable condition, continuously insured and owned for one year, manufactured less than 25 years before the trade-in date, and have fuel efficiency of 18 mpg or less.

There are a few other details regarding the specifics of the automobile that is being traded in and how much the actual voucher amount will be so be sure to speak to your tax advisor before actually going to make a new car purchase.

Keeping Your Business N Synergy

Software Bites the Dust

As of June 30th, the market for small office home office (SOHO) financial software has gotten smaller. Microsoft recently announced that they will discontinue their MS Money software title, a favorite among many sole proprietors and personal finance software fans and yesterday was the last day it was sold. Those individuals that purchased the product recently still have until January 31st, 2011 to activate the product. This may be shocking news to many that use software to manage their finances, but there are still options.

One option is to consider migrating your data over to another software title such as Intuit’s Quicken (Microsoft and Intuit are currently working on a conversion). Another option is to simply upgrade you financial data to more robust software such as MS Office Accounting, QuickBooks, or others. Current customers of MS Money should contact Microsoft for additional information.

Keeping Your Business N Synergy

New law to help small businesses

Congressional leaders may be out to help the small business owner with a new proposed bill. The “Home Office Tax Deduction Simplification and Improvement Act of 2009” would create simpler way for small business owners to cut through the complex tax code and take advantage of the home office tax deduction. The details of the Act would also open the home office deduction to many of the small business owners who did not qualify for the home office deduction in the past.

Currently the bill is backed by many of the advocates for small businesses, so now is the time for you the small business owner to call your legislator and tell them to vote yes.

Keeping Your Business N Synergy

The Short on Education

While I was in the process of starting my day this morning, I overheard some very interesting information on CNN headline news that will be quite beneficial to college students and their parents. According to Education Secretary Arne Duncan, the FAFSA (Free Application for Federal Student Aid) forms will be shorter for the 2010 -2011 school year. This will allow students and their parents to fill out the forms in a faster, less stressful manner. Some of the wording of questions will be condensed and some questions may be totally eliminated.

The IRS is also helping families of college students by entering into a partnership with the Department of Education that will allow students to automatically download their tax data into the FAFSA forms starting in January. Typically families of college students would have to use their tax return information and enter the lines into the FAFSA worksheet or get a FAFSA report from their tax advisor and the new process will make filling out the application a lot easier.

Keeping Your Business N Synergy

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