Getting Ready for 2011 & Lame Ducks

Getting Ready for 2011.
Let's make the assumption that your business plan is in place ready to go! Now what to do to make sure it happens?

With a business plan, especially a one page plan that all business owners really need to have, it should NEVER be put away in a drawer with your tax return.

A good plan, is one that is reviewed, edited, changed and celebrated.

Here is a monthly checklist I use for my businesses:

1. Sales Made $_____________ month_____________ (Gross revenue)

2. Money Spent $_____________ month_____________ (Costs and Expenses)

3. Compare to plan. Are we off track or on track and WHY?

4. Any new ideas this month? Get a strategy on paper to determine profitability.

5. New contacts made? Have they been added to my lists? Do I need to connect with them?

6. What are we celebrating at the end of this month?

7. What needs to Grow; End; Start; next month?

I use Outlook and have this set as a reoccurring appointment with myself on the last day of the each month. A reminder is triggered 2 days prior and the questions are in the body of the appointment. Pretty simple and hard to ignore.

If you would like to learn more about using Outlook to track your business tasks, join me on December 29 4PM for a 30 minute free webinar. Email for details: Monthly Check

Staying on task is challenging, and with a plan, sometimes, the results can be phenomenal.

Copyright 2010 Linda Fayerweather MBA EA

http://www.changinglanes.biz/

419-897-0528

linda@changinglanes.biz

Consider working with a coach or a MasterMind Team to make 2011 the year of your dreams!

Lame Duck Congress Results

The Tax Bill Act is now law and is surprisingly direct and straightforward, given its $850 billion cost. Most tax bills have so many pages they can be confused with the New York City Yellow pages, but this one is just 30 pages - in fact, the Congressional Joint Committee on Taxation's "Technical Explanation," is five times longer than the law itself. Let's take a quick look at some of the specific tax provisions:

• Extend Tax Cuts. The core of the bill, of course, extends the Bush tax cuts for two more years. This means the top rate stays at 35% (rather than 39.6%) and the rate on capital gains and qualified corporate dividends stays capped at 15% (rather than 20%). But the new law keeps taxes down for everyone, not just the highest earners. If those Bush cuts hadn't been extended, the 10% rate would have disappeared, and tax brackets would have increased faster for everyone.
• Payroll Tax Relief. The act reduces the employee portion of Social Security and self-employment taxes by 2% for 2011 only. This replaces the $400/person "Making Work Pay" credit in effect for 2010 - and ironically means higher taxes for individuals making under $20,000 and families making under $40,000.
• Estate Tax Relief. This is actually the most controversial part of the legislation. Under current law, the estate tax was scheduled to kick back in at 55%, on estates topping $1 million. Most observers expected Congress to restore the tax at the 2009 level, with a 45% tax applying on estates over $3.5 million. But the new law is even more generous, with a tax of just 35% on estates over $5.0 million. Again, this rule applies for 2 years.
• Other Provisions. Finally, the act extends a laundry list of popular tax breaks that otherwise would have expired:
• It "patches" the Alternative Minimum Tax system for two more years, thus protecting millions of Americans from the AMT,
• It extends the Child Tax Credit and American Opportunity Tax Credit for college tuition,
• It expands the Earned Income Tax credit for low-income working families,
• It extends bonus depreciation and first-year expensing deductions for businesses, and
• It extends miscellaneous tax deductions like educator expenses, state and local sales taxes, and tax-free IRA distributions given directly to charity.

--By Keith VandeStadt http://www.taxcoachsoftware.com/

Hopefully, this short explanation of the changes to the Tax law will help you get a handle on your 2010 taxes and planning for 2011. If you are still confused or have questions, give us a call, we can help.

Tim Pinkelman, CPA

Accounting Center & Tax Services, Inc.

"Our Value is Measured by Your Success"

419.882.9255

734.847.0400 Ext.201

http://www.accounting-centers.com/

Happy New Year & Oil Spills

Half Way to New Years!

Goals, goals, goals. I do talk about other things . . . occasionally. Realistically, we all make goals and many of us even write them down. Too many people ignore goals even written ones, and then declare, "well, they just don't work." Goals create the stairway to the life you want. And they do work. It doesn't matter either if you call them goals, objectives, targets, or desired outcomes. If they have a deadline and are measurable, they are goals.


Now, the secret to strong goals is really not that difficult.
1. The goal should stretch your ability (BHAG=Big Hairy Audacious Goals). If you set the goal at 82 and last year you did 70 and you achieve 79, you will be happy. If you had set your goal at 75, would you have reached it? Probably. Would you have reached 79? Maybe/maybe not. Many humans have a natural tendency to coast after the goal is achieved.


2. Break it down. A workable goal is able to be broken into projects and projects can be broken into tasks. And if you are really clever while doing these break-downs, you can assign some to other people in your business. Be clear - a project will, like a goal have a deadline, but it will also be assigned to someone, even if it is just you. Tasks are then broken down to strategic next actions.


Here is an example:
Goal = $1.2 million in sales by year end;
Project = increase sales by 5% to past customers by end of third quarter;
Task = Design and implement a marketing program for customer retention;
Strategic Next Action (SNA) = Assign Marketing design to Sam.


Notice how from the bottom up, these are all aligned to each other. The Goal may have a multitude of projects to achieve the end, but for this particular SNA, if it is not done, then none of the above will likely happen.


3. Measure. Since goals must be measurable, then we need to measure them. Projects are judged my the completion percent to the goal. The tasks are usually a sequential process to complete a project and the SNA is either done or not.


4. Small Steps. If you find yourself stuck with goals not being met, start with a strong SNA. Remember, when you notice a person has lost weight they likely did it one mile and one calorie at a time.


Happy New Year!


Copyright 2010 Linda Fayerweather
Changing Lanes LLC
419-897-0528
http://www.changinglanes.biz/



What is the Implication of Disaster Assistance?
President Obama has declared the BP oil spill, still spewing millions of gallons of oil into formerly pristine waters, to be the worst natural disaster in American history. The spill has already cost BP over $2 billion, and experts assume this to be a small down payment on the final cost. BP will end up spending billions more to reimburse Gulf residents for lost wages and other income, physical injuries, and lost property.


With dozens of federal, state and local agencies giving funds, advice and cautions, it should come as no surprise that our beloved Internal Revenue Service has also weighed in with a special discussion clarifying tax rules for oil spill claims.


Generally speaking, payments for lost wages and other income are taxable. That's because the wages and income they replace would have been taxable. Replacing wages is relatively straightforward. When hotel staff, cooks, and servers at beachside resorts are laid off, it's not hard to calculate the wages (and thus the tax) that they would have made had they been working. However, those payments generally aren't subject to Social Security and Medicare tax (because they aren't actual "payment for employment" under the law) and aren't subject to withholding.


Replacing lost business income can be harder.
First, businesses have to substantiate their losses. Tax returns may be the best vehicle for proving lost income. However, it seems that some businesses affected by the spill haven't reported their full income in the past. (I know, hard to believe.) And some businesses may have a hard time claiming reimbursements in the first place. For example, should BP pay to replace tips lost by exotic dancers playing their trade in affected areas?


Second, payments for property damage aren't taxable so long as the payment doesn't exceed the property's "basis," which is the measure of its value after any depreciation. The same is true for payments on account of personal physical injuries or physical illness. Payments for emotional distress (like insomnia, headaches, or stomach disorders) not attributable to personal physical injuries or physical symptoms are taxable; however, you can exclude your medical expenses attributable to that emotional distress.


Typically this column focuses on how long-term planning can save tax. In the case of payments to Gulf coast residents, there's not much long-term planning to do, at least for the tax consequences. But the IRS guidance is a useful reminder that taxes factor into nearly every financial choice you make. And we're here to help you make those choices as tax-efficient as possible. Don't hesitate to call!


Copyright 2010 Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
419-882-9255 or 734-847-0400
www.accounting-centers.com

Changing & Taxes

Business tips for week of January 25, 2010

“We are here and it is now. Further than that, all human knowledge is moonshine.” H.L. Mencken

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Change the World
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Maybe you have seen:
“Please consider the environment before printing out this email” at the bottom of emails. I just started noticing it late last year and some very quick research lead me to a book printed in 2004 called “Change the World for a Fiver”. Lots of great tips mostly for the home and individual and this is classic LEAN – eliminating waste. Eliminating waste one tiny step at a time is a never-ending project with huge impact for business by reducing cost to your organization.

Even though Kermit the Frog says “It Ain’t easy being Green”, when you start small, it can be quite infectious. Where to start?

1. Turn off equipment when it's not being used.
2. Encourage communications by email, and read email messages.
3. Turn out lights when you leave a room.
4. Produce double-sided documents whenever possible.
5. Do not leave taps dripping (Okay, this is old – my older sister won a science fair project on the leaky faucet in 1964!)
6. Print drafts on the backside of scrap paper.
7. Find a supply of paper with maximum available recycled content.
8. Choose suppliers who take back packaging for reuse.
9. Take your own bags everywhere.
10. Recycle. Just about everything has a second or third life.

Next week: an interview with my favorite recyclers!

Copyright 2009 Linda Fayerweather
What's working in your Business?
Changing Lanes LLC
http://www.changinglanes.biz/
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Cell Phone and Taxes
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If you have teenagers at home, you've probably marveled at how they can sit for hours with their cell phones, texting away in a language that looks like it was designed specifically to shut you out. Kids these days (and some adults, too) have built their lives around cell phones and text messaging. It's fast becoming a cliché of the times. In fact, in the recent George Clooney film Up in the Air, one character's live-in boyfriend breaks up with her by text-message while she's flying around the country with Clooney.

But now, there's finally a cell phone application for grownups. It's for taxes -- and it's here just in time for the stack of W2s, 1099s, and 1098s that are about to start hitting your mailbox. Imagine if filing your taxes were as easy as this:

1. Snap a picture of your W2 with your iPhone camera.
2. Answer some questions about interest and unemployment income, and the like.
3. Review your information and e-file directly from your phone.

Of course, there are a couple of catches. (Aren't there always when it comes to taxes?)

1. You have to have an iPhone. The app's optical character recognition software works best on newer "3GS" iPhones with more sensitive camera lenses.
2. You have to live in California. The manufacturer considers this year's rollout to be a "beta test" and plans to make more states available next year.
3. Most important, you have to file a 1040-EZ -- the very simplest form available.

That third "catch" is the real killer. Like it or not, complexity is what creates tax-saving opportunities. No "smart phone" is smart enough to keep up with new and ever-changing tax breaks for buying new cars or new homes, financing your children's college tuition, or building your business. Sometimes the strong lure of technology is not always the answer to planning your businesses future.
Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
Two Locations – Temperance MI & Maumee OH
419-882-9255 or 734-847-0400
http://www.accounting-centers.com/

Lessons Learned & Tax Changes, Again.

"Treat your business like a Fortune 500 Company. Create and implement a process that organizes your company behind the scenes." --Nolan Baker

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Lessons Learned and Relearned
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While working with clients, family and myself (my most difficult client) I am constantly reminded that we all have good ideas that get lost in the daily clutter of life. Usually these ideas are simple, clear, and will make a difference. Just last week, Tim Pinkelman, a great business planner, friend and client, showed me a form he had created years ago for meetings to handle, organize and identify the next step. It was simple, one page, fill in the blanks, check the boxes to organize the activities of a meeting. This is the type of tool that helps the attendee listen instead of taking voluminous notes. A great tool he had rediscovered.

I think we all have those moments of "why am I not doing that anymore?" Mostly, it comes from the day to day stress of getting things done without respect to added value or savings.
So where to start to change this cycle? Well, I will usually say - a plan that is written and goal driven. But today, I want you to be the student as we approach the holiday season and the New Year.

1. Create order in your life. Let Chaos be a theory not applied in your life. Clutter is the zapper of energy; it reminds us of undone projects.

2. Keep is simple. Occam's Razor paraphrased by me is "if all things are equal usually the simplest solution is the best."

3. Find Clarity. Knowing what you want and when you want it are keys to success and happiness.

4. Set goals. Goals need to be SMART: Specific, Measurable, Achievable, Relevant, and Timely. Think of goals as the GPS of your life - you know you want to get somewhere, right?

This week's quote is from Nolan Baker, a financial planner in the Toledo, Ohio area that has built a practice and grown it in these unique financial times. What the quote eludes to is the need to put systems and processes in place so that the creative juices and energies of your ideas are not lost! Whoa - that sounds like Lean in practice and a way to document what you have learned! Oh yes, he is the cover-boy of the http://www.seniormarketadvisor.com/  for November 2009.

While you are getting ready for the holiday season, get your mind in a place that will benefit your dreams for only then will you be of greatness for the rest of us!

Copyright 2009 Linda Fayerweather
What's working in your Business?
Changing Lanes LLC
http://www.changinglanes.biz/

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Tax Changes, Again
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One thing we can be sure about with taxes is they are a constantly moving target. On November 9, President Obama signed the Worker, Homeownership, and Business Act of 2009. That Act extended the first-time homebuyer credit for purchases signed before May 1, 2010 and closed before July 1, 2010. The new law also limited the credit to homes costing $800,000 or less and raised the income level to qualify for the credit ($125,000 for individual filers and $225,000 for joint filers).

However, the new law also extended the credit, up to a limit of $6,500, for buyers who have maintained the same principal residence for any five-consecutive year period during the eight-year period ending on the date they buy a new principal residence. So you don't have to be a first-time homebuyer to qualify for the "first-time" homebuyer credit!

Buying a home has always offered tax-saving opportunities. The new law makes these opportunities even more attractive. If you're worried about missing these sorts of "hidden" opportunities, then call today to discuss what we can do. And let your friends, family, and colleagues know that we're here to help them, too!

Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
http://www.accounting-centeres.com/
419-882-9255 or 734-847-0400

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Links of Interest
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A Free Copy of Think And Grow Rich! The Best-Selling Success Book of All Time by Napoleon Hill. http://www.FreeTGRbook.com/ChangingLanes. Vic Johnson, wants to give you a free copy. It is one of my personal favorites and one I give to college graduates. Take the opportunity to get one for free!

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SMART goals details
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Does your Business have a Plan? Webinar and Live Classes are available
now with Changing Lanes. Your business can still be the business of your dreams.
December 7, 9, 10 - live webinar.  Registration
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Learn more about Occam's Razor
Have a profitable week.
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Linda Fayerweather, Editor
Changing Lanes LLC