Deadlines, Deadlines, Deadlines

The fall season is a busy time: making quarterly filings and payments; verifying employee, wage, and benefit information; processing tax returns. These are just some of the many deadlines coming for a small business owner. Be sure that you have everything you need to get all of your payroll information filed correctly and on time. Here are the upcoming deadlines for payroll tax filings:

Social Security, Medicare, and withheld income tax. File form 941 for the third quarter of 2007. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until November 12 to file the return.

Federal Unemployment Tax. Deposit the tax owed through September if more than $500.

There also may be state payroll taxes due for the quarter. Be sure to check with your state.

If this seems like a lot to do, there are ways to make filing easier. By using technology and e-filing most of these tasks can be track and completed with little hassle. Check with your tax advisor for more information on how you can make payroll filings easier.

Keeping Your Business N Synergy

www.thebricogroup.com

Tuition is the Perfect Medicine

Today’s tax saving topic deals with personal tax deductions for taxpayers with children in college or prep school who pay tuition. For taxpayers with children in college or prep schools tuition can be a large family expense. Now there is a write-off available for a portion of the tuition that is attributable to health care as a medical expense. You must have a breakdown of the tuition costs that’s attributable to health care to take this deduction. For more information see IRS Revenue Ruling 54-457.

Keeping Your Business N Synergy

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Tax Provisions….Get your 4th Quarter N Order

The last quarter is upon us!! It is now time for the last push for the year 2007. This is also a great time to take a look at your tax situation so that you will be ready for tax season next year. Now is the time to get a strategy together for tax time, not the yearend. There are a few new tax provisions for 2007, and one many small business owners may want to look at is the Domestic Production Activities Deduction (Code Sec. 199).

This deduction many small businesses qualify for and it allows a deduction from taxable income an amount that is equal to a portion of the small businesses’ gross receipts. The deduction has now been raised to 6 percent (%) up from 3 percent (%) in 2006.

Be sure to speak with your tax advisor for additional rules and qualifications for the deduction. Get your last quarter N order.

Keeping your Business N Synergy

www.thebricogroup.com

Your Spreadsheets won't Excel

Like many small business owners, I was a bit apprehensive about upgrading to the new Microsoft Windows Vista and Microsoft Office 2007. After all the listening to others and hearing their problems with the new system, I figured by now that all the kinks should have been worked out of Microsoft’s new offerings. I went ahead and upgraded all our office systems and must say that I have not experienced any problems with the new system so far.

Then I came across the following article that states math errors have been found in the new Excel 2007. It appears the errors have to do something with “floating point numbers” and the programmers at Microsoft are aware of the problem. They just don’t know when it will be fixed.

Check out the article and see if your spreadsheets have any of the errors included in them. As always it is good to foot and cross foot your totals for accuracy.

Keeping your Business N Synergy

http://www.thebricogroup.com/

Max Out Your Retirement Plan

The last quarter of the year is about to begin. This is a great time to take a look at your overall financial picture and make adjustments to your retirement plans. Here are some qualified retirement plan limits for the year 2007:

Pretax contributions for 401(k) and SEP plans: $15,500

Sec. 415(b)(1)(A) defined benefit plan annual benefit ceiling $180,000

Combined employer/employee pay-in limits for all defined contrib.. plans $45,000

SIMPLE plan limits $225,000

For workers aged 50 and over, there are catch up limits that can help you even more at tax time. Be sure to speak with your tax advisor to ensure that you get the most benefits from you retirement investment.

Keeping your Business N Synergy

www.thebricogroup.com

Depreciation OOOPS!!!

With the corporate tax filing extension behind us, many small businesses are focusing on the final quarter of the year…the last push for the finish line. Hopefully you filed your returns correctly and took into account any depreciation for assets purchased. If you did not or if you made a mistake, not to worry for the IRS has made it easier to correct these mistakes.

According to IRS Revenue Procedure 2007-16, taxpayers (and their tax advisors) can now file Form 3115, Application for Change in Accounting Method with either an original, or amended tax return for the year in question. The previous procedures required the taxpayer file an amended return. For more info visit http://www.irs.gov/irb/2007-04_IRB/ar11.html

Keeping your Business N Synergy

http://www.thebricogroup.com/

Get Help Anytime…Anywhere

You have a problem…your accounting software has a bug and you can’t print a quote for your largest client. You need immediate assistance so that you can get that invoice or quote out to a customer and keep your business running. If you have a financial advisor who is tech savvy, your business will be back up and running in no time with Windows Remote Assistance.

Remote Assistance works with Windows XP and Vista operating systems that allow your advisor take control of your desktop to walk you through any problems you may have with your system. All you need to work proactively with your advisor is internet access, an e-mail account, and Windows Vista or XP operating system on your computers.

For more information regarding how to work proactively with your advisor and keep your Business N Synergy visit www.microsoft.com and search for Remote Assistance.

www.thebricogroup.com

Bad Tech Attitude

Microsoft conducted a telephone survey of 252 small business owners and found out that 60% of family owned businesses with multiple generations working together have had a disagreement regarding technology spending. Other findings include:

83% of small business owners were satisfied with their recent technology investment

24% look for technology advice from technology consultants

29% from family and friends for advice

Those that look for advice from technology consultants for technology were the most likely to be satisfied with their purchases coming in at 95%. Small business owners typically purchase PC’s, laptops, and industry specific software. Be sure to keep your Business N Synergy by making an investment in technology.

http://www.thebricogroup.com/

Small Business Mistakes are YOU making any???

According to Betty Price of the Price Group there are five fatal flaws that many small business owners make when operating their small businesses. They include:

1. Failure to work from a plan
2. Failure to understand and implement marketing
3. Failure to effectively deal with the people factor
4. Failure to communicate effectively
5. Failure to adapt with the times

Does this sound like you? These are some very important areas that need to be addressed and according to Price small business owners will have a greater opportunity to increase profits and sustain growth.

For details regarding the Price Group’s study view the following link:

http://www.pricegroupleadership.com/

Keeping your Business N Synergy

New Scam uses the IRS as Cover

The IRS has announced a new scam that has surfaced in some taxpayers’ e-mail accounts. The scam consists of a two-step e-mail that falsely promises recipients they will receive $80 for participating in an online customer satisfaction survey. The e-mail contains a URL linking to an online "Member Satisfaction Survey." In this case, the e-mail notifies the recipient that he or she has been randomly selected to participate in a survey. In return, the IRS will credit $80 to the taxpayer's account. There are references to the IRS in the "from" line and the "subject" line of the e-mail. The link to the survey and a copyright statement at the bottom of the e-mail also reference the IRS. The survey form features the IRS logo.

For more information regarding the scam check the IRS website link:

http://www.irs.gov/newsroom/article/0,,id=173424,00.html


Taxpayers Beware!!!

Business N Synergy

http://www.thebricogroup.com/

IRS is Wrong!!!

According to information from the Treasury Inspector General for Tax Administration (TIGTA), the IRS is often wrong when assisting taxpayers in properly preparing and filing return.

When auditors posed as taxpayers recently, they found that one third of the test returns assisted by the IRS were given incorrect information to prepare the return. The incorrect returns could have been subjected to interest and penalties for underpayment.

The IRS Free File Program also came under scrutiny by the auditors due to problems with the software how it applied the law in some situations. They also found that the Taxpayer Assistance Center visits were also time consuming and usually took multiple tries to have a return prepared.

For more information on the report follow this link:

www.treas.gov/tigta/auditreports/2007reports/200740164fr.html

Keeping your Business N Synergy

http://www.thebricogroup.com/

Owe Taxes?? The IRS won’t call the bill collector anymore

In July, the House Ways and Means Committee repealed the ability of the IRS to use private debt collections to collect taxes. Under current law, the IRS uses private debt collection services to seek out taxpayers and arrange payment. The Tax Collection Responsibility Act of 2007 can change that.

Other parts of the Act will fill in the holes opened by the change and possibly make up for the 1.1 billion in lost tax revenue. These changes include:

• Increasing the penalties on failures to file Form 1099 information returns
• Temporary increases for required estimated tax payments
• Immediate tax on individuals who renounce citizenship

Be sure to speak to your tax advisor if any of these issues affect you or your business.

Keeping your Business N Synergy

http://www.thebricogroup.com/

12 Reason to E-File Your Tax Returns

According to the IRS, the following are benefits that not only you as a tax payer but also your tax advisor will enjoy by e-filing tax returns:

1. 99% of all forms and schedules for individuals are available for e-file
2. Filers receive notifications within 48hrs
3. Accepted e-file returns have a 99% accuracy rate
4. Get your MONEY in half the time by choosing direct deposit
5. Extend your tax payment if you owe by delaying payment until the due date
6. Mistakes are immediately uncovered
7. 37 states and D.C. taxpayers can use Federal/State e-filing program
8. Returns entered into the IRS database remain unchanged by IRS employees
9. Electronic signatures are allowed through self-selected PIN’s
10. Transmission methods meet or exceed all government security standards
11. No chance of being audited
12. High satisfaction rating

Things to ponder as tax season draws near. Let this be your year to E-file

Keeping Your Business N Synergy

http://www.thebricogroup.com/

Saving the Middle Class some Cash

Congress thinks it has the answer to saving us from the burden of taxes. The Senate Finance Committee is thinking about lowering the tax burden on the middle class. The Tax Foundation an independent expert warns that passing laws that benefit the middle class may not be the right way to go. The best course they feel is to do less to the individual tax level and cut the corporate tax rate.

Is this a ploy to help out big businesses? Here are some interesting facts:

The Americans with incomes in the bottom 20 percent pay only $171 in personal income taxes but pay $271 in higher prices arising from corporate income taxes. The top 20 percent income bracket pay an average of $48,390 more in taxes than they get in government services. Meanwhile the lowest 20 percent receive $31,032 more in government services than they pay in taxes.

Definitely something to ponder as the tax season rolls near. Let us know your thoughts. Do you favor corporate tax cuts or raising federal rates to levels from the year 2000?

Keeping your Business N Synergy

http://www.thebricogroup.com/

Independent Contracts and Your Business…Are YOU being Audited?!?

The federal government and the IRS is clamping down on businesses that misclassify workers as independent contractors. Of course this is all directed in an effort to close the tax gap (standing at $345 billion). Some of the planned initiatives include:

1. Congress possibly rewriting the rules on work classification
2. Increase federal tax compliance on employment taxes, including a written understanding with all 50 state agencies that administer state employment taxes
3. More Audits using the 20 factor test and audits of S-Corps
4. Increase criminal investigations of businesses that engage in wage schemes

This is just another call for many to get their act together as stated in a previous blog post. For more information regarding this and other issues regarding your business and its workers, be sure to speak to your tax advisor.

Keeping your Business N Synergy

http://www.thebricogroup.com/

Sole Proprietor Shame

According to new information from the Government Accountability Office (GAO), sole proprietors (SP’s) are one of the main culprits of contributing to the Tax Gap. At least 61% of sole proprietors are underreporting their net business income. Of that, 10% of SP’s understatements range from 6k-18k.

The GAO is recommending the Treasury Department come down hard on SP’s, so it may be a good time to get your act together.

GAO also estimates that $68 billion of the $345 billion tax gap is from the shameful SP’s

http://www.webcpa.com/article.cfm?articleid=25086

Keeping Your Business N Synergy (sans shame)

http://www.thebricogroup.com/

Intuit Discontinues Quicken Products

For those out there that use Intuit’s personal financial products, here is some news that has been recently announced by Intuit:

Over the past few years, we've added new features and streamlined the Quicken product lineup to make it easier to choose the right product for your customers. Intuit is no longer offering new versions of Quicken Basic as of August 2007.
What this means is that if you are interested in upgrading to the newest Quicken 2008 products you will more than likely have to purchase Quicken Deluxe 2008. New tools that are included in Quicken Deluxe 2008 are:

• Easily migrate your existing Quicken Basic data, including bank, credit card and all online account information, transaction history, reports, and customized preference options
• Track everyday spending with the new "My Savings Plan" so you can save for the bigger things you and your family really want
• Plan for college savings with 529 support
• Track and categorize expenses to help make tax time easier
• Scan and store important documents and statements in one place

The Quicken 2008 line of products is planned to be available in August. Planned shipping will begin the week of August 27th.

Keeping Your Business N Synergy

http://www.thebricogroup.com/

Technology Can Save You Money

Many small business owners and individuals feel that investing in technology is very expensive. Some also feel that using technology in their everyday lives is complicated in addition to the high costs. When you really get down to it however, technology can really save you money. Take the example of online tax payments and filing.

I recently had to update my tag and pay the taxes for my automobile. The Georgia Department of Revenue now handles all the tag and tax filings for the state. There are two ways a person can pay for their tag/taxes, either go to the county tag office and wait in line (usually takes about 45 minutes to and hour) or simply pay for the tag/taxes online. This year I chose the online alternative. Usually when a person makes a payment online, there is a “convenience” fee that it paid to the third party that handles the transaction and it typically no more than $5. I personally felt that this fee was not to steep and once you factor in the total costs (travel time, waiting in line time, and gas), the $5 fee comes out to be considerably less than paying in person. With gas prices where they are presently, $5 would not have even paid for gas to get to the county tag office.

So the next time you need to make any kind of payments, consider making them online. It can save you time, money, and even a bit of your sanity.

Keeping Your Business N Synergy

www.thebricogroup.com

The 8 areas of Business Synergy

The word “Synergy” can loosely be defined as two or more agents working together to create a greater effect than working by themselves. When operating a small business it is important that ALL aspects of your business are on the same page working together. When this is accomplished, a small business owner can separate themselves from the rest of the pack. There are 8 major areas that a small business can focus on to ensure that their business is above the rest:

1. Management
2. Operations
3. Business Finance
4. Human Resources
5. Personal Taxes
6. Business Taxes
7. Marketing
8. Sales

By focusing on these eight areas and ensure that they are all working together toward the common strategy of the business, a small business owner can realize increase profits, better productivity, and stable work environment for their employees. It may take a little effort, but with the help of advisors, your firm can be on top.

Keeping Your Business N Synergy

http://www.thebricogroup.com/

Death of the SBA?!?!

Here is an interesting article that came to view today; many small business friendly banks feel that the SBA is NOT doing their job. The major concerns with the SBA are the doubling of loan-application fees, the toughening of loan requirements, and the halving of the SBA's budget.

The SBA supports their position with year 2006, when it backed record 100,000-plus loans under two primary small-business programs, worth $19.1 billion, also a record high. Outsiders point out that SBA bank-issued loans are responsible for about 8 percent to 10 percent of all external small-business loans.

When we recently hosted one of our Small Business Series seminars, we spoke with small business owners to get their thoughts on the SBA and if they are a viable solution for funding. Many attendees felt that they would use alternatives to the SBA due to the many hurdles one has to cross to get a SBA loan.

Now that small business friendly banks feel just as disgruntled as the small business owner, where is the SBA going to fit into the strategy of the business owner?

One critic even feels that the SBA is a relic of a different market from 30 years ago and wonders whether the SBA will even exist in 20 years.

Click here for more information on the SBA’s fall.

Keeping Your Business N Synergy

http://www.thebricogroup.com/