What Will You Learn About Your Customers this Week?
Peter Drucker is credited with telling businesses to "Grow or Die" because all businesses lose customers with an average being around 7% of existing customers, yearly. Realize that some customers do die, some find other friends but 68% leave because of an attitude of indifference toward the customer according to a "US News and World Report" survey. Since all businesses do lose customers each year, growth is necessary just to stay even.
Lost customers affect your bottom line in several ways:
-Cost of courting and acquiring new customers,
-Cost of lost referrals and
-Cost of employees' time to educate and train new customers.
Just to start a retention program means staying on top of customer trends and attitudes means being in touch with:
-World and national developments in your industry,
-New technology as it applies to your business to do more with less,
-Your colleagues, both locally and nationally for networking, support and trends,
-Systems that will improve efficiencies,
-Procedures that will keep systems in place,
You can read Jill Griffin's book titled Customer Winback: How to recapture Lost Customers and Keep Them Loyal at Google Books.
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Tax Strategies for A-List Misbehavior
Actress Lindsay Lohan made her silver screen debut at age 12, playing adorably cute identical twins in Disney's The Parent Trap. But she grew up fast -- probably too fast -- and has since established a reputation as one of Hollywood's hardest-partying young stars. Now she sells magazines with headlines out of the police blotter, not movie reviews. Her life has become the sort of tabloid trainwreck that lets the rest of us feel smugly superior.
Back in 2007, Lohan spent a grueling 84 minutes in jail after pleading guilty to various drug and alcohol charges. Last month, she made headlines again after Superior Court Judge Marsha Revel sentenced her to 90 days in jail for missing the court-ordered alcohol treatments mandated as part of her last sentencing.
Hollywood celebrities have always spent small fortunes on professional advisors - agents, accountants, attorneys, and business and investment managers among them. But criminal lawyers are increasingly joining those ranks. While nobody wants to pay a criminal attorney, are there at least any tax advantages to ease the sting of the bill?
The Supreme Court says legal fees may be a deductible business expense if the unlucky defendant paying those fees can show a sufficient link between their trade or business and their (alleged) crime. In Lohan's case, though, there's really no connection between missing rehab and promoting movies. You might think it would be enough for her to simply say "I should get the deduction because if I'm in jail, I can't earn taxable income." But the Tax Court has consistently shot down that argument. (And don't forget the 11 cents/hour she can earn stamping license plates!)
Judge Revel also sentenced Lohan to another 90 days of inpatient rehab. Fortunately, drug and alcohol rehab costs are a deductible medical expense - to the extent total medical costs exceed 7.5% of "adjusted gross income." Most stars with Lohan's "A-List" name recognition earn far too much to take advantage of that deduction. In her case, however, her post-rehab income may be just low enough that she can use the help!
There's not really a specific tax-planning lesson here. We just hope you're taking care of yourself better than Lindsay Lohan -- so we can help you when the deductions really are tied to your business!
.Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
419-882-9255 or 734-847-0400
http://www.accounting-centers.com/
Monday, August 02, 2010
Monday, July 26, 2010
Falling Through the Cracks - Part 1 As we approach August, many of us in the northern hemisphere gear up for vacation. In the last week, I've talked with six people that are stressed about vacation. Below, Pat has some great tips on having alleviating the stress. In fact, she wrote this near the shores of Lake Michigan in Wisconsin where the PGA will be in a few weeks! After her tips on getting ready, check out my thoughts on a proactive reentry. Hope your vacation is great, you deserve one! --Linda Fayerweather, Editor
Vacation - Don't Take Stress With You!
We're quickly approaching the biggest vacation month of the year; not sure about you, but I am looking forward to some well-deserved time away. We are taking our three young grandchildren on a trip to Mackinac, MI and I am so looking forward to it. The trick, however, is to manage those important days and hours prior to vacation, without totally stressing out with thoughts such as, "If I get all my work done, then I can go enjoy myself."
Unfortunately, with that approach, we usually find ourselves working long and hard right up until we leave. This actually triggers the fight or flight response in our body, releasing cortisol, and creating stress. If this is compounded by skipping self-care routines, like exercise or meditation, in an attempt to fit all the work in, we could end up carrying the stress into our vacation. You may have noticed that it takes time to clear stress-related chemicals from our system, which explains why for many of us it's the third day of vacation before we seem to feel relaxed.
Instead of falling into this common trap, there are a few things we can do:
1. Intend - make a decision that you want to have a calm, stress free week prior to vacation. Consciously pay attention to yourself and how you are feeling and if you notice stress, take actions to release it.
2. Delegate - vacation is an excellent opportunity to pass some tasks to your employees or possibly hire a virtual assistant. Be sure to delegate the tasks several days in advance of your departure to give them time to ask questions.
3. Prioritize - do this two weeks in advance of your vacation, so you know what projects and actions must be completed prior to vacation. Create a list of what absolutely can't wait until you return and make a plan for completing these actions. Schedule the other projects/tasks onto your calendar for after vacation.
4. Wrap up - dedicate the last day before vacation to wrap up loose ends, meet with anyone you've delegated actions to, set up your voice mail and email Out of Office Reply and leave yourself a note detailing where you got to on unfinished business, what tasks you postponed, what will need immediate attention when you return and anything else you might worry about while on vacation. Check out Linda's tips below for reentry.
It's much easier to relax and have a great vacation when we consciously manage the week leading up to our time off. Have a good time!
Copyright 2010 Pat Altvater
Transforming Bodies and Minds
http://www.outsmartweight.com/
http://www.momsoutsmartingobesity.com/
http://www.choosesuccessbook.com/
419-344-6613
Falling Through the Cracks - Part 2
Whenever I hear "falling through the cracks" or a variation of that, I'm sent back to the hot summers of my youth and the Central Park Pool where swimming was ten cents, the water was cold, and the changing/shower room had a floor that was wooden decking material over a cavernous space 20 feet below.
Whoa be the person that dropped their ice cream money or special belonging down there as it required a written request for its retrieval and, I was told when I lost my quarter "How will we know it is your quarter? Do you know the date on it?" I never got the quarter back. . .
Keeping your plan from falling through the cracks during vacation is a good way to practice using some productivity ideas. Here is my plan to stay on track:
1. Identify the strategic next action (SNA). When I am going to be gone for more than a few days, before leaving, I look at my upcoming work and then ask "when I return, what is the next strategic action I need to do on this project or task AND does it support my desired outcomes (goals)." I usually schedule the first half day back as SNA calls/email . And I actually use that category on my calendar and block the space.
2. Book it on your calendar before you leave. Controlling your calendar after time away from the office does require some proactive thinking. In my last job where I had a staff, I'd usually suggested we have a staff meeting at lunch on my first day back - "bring your thoughts, questions and ideas and we will all catch up". That did two things - kept them out of my office in the AM and gave me the opportunity to let everyone know what my agenda for the future was and get them to recommit to their projects.
3. Before leaving, review your plan completely. Make sure each goal or objective is being attended to upon your return. If a goal or objective is not being cared for it will likely fall through the cracks and you may find yourself having to requisition future time to retrieve it - time you may not have available then.
Both David Allen's Getting This Done (GTD) and Sally McGhee's Take Back Your Life! use Strategic Next Actions to stay on track. This may be too "heavy" for your beach reading, but they are great refreshers for staying on top of your life!
A little proactive planning will lead to a smooth reentry and the decompression from your vacation will last longer!
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Just Like Them - Workshop in Maumee OH
Date: Thursday, July 28, 2010
Time: 1:00pm - 4:00pm
Location: Danberry Real Estate Briarfield Conference Room
Street: 3555 Briarfield Blvd. Maumee, OHsoc
Description
Marketing has changed dramatically in the last few years and if you are confused... you are not alone. Join Maumee Chamber of Commerce members Todd Pillars of SendOutCards and Linda Fayerweather of Changing Lanes, LLC as they help you wade through the mountains of media to find what works best for your business.
You will learn:
- Easy techniques you can start using tomorrow
- How to laser target your efforts
- What tried and true marketing still works
- What social networking is and why do it
- Why local networking events are crucial and how to maximize your efforts
- Handouts to maximize your education
And LOTS of time for Questions
Stop guessing and Start making sense of the New World (Wide Web) Order!
Who Should attend?
- Business Owners
- Sole Proprietors
- Partners (get a group rate)
- Business Decision Makers
Register at http://justlikethem.eventbrite.com/
Forward email
This email was sent to lindafay@bex.net by linda@changinglanes.biz.
Update Profile/Email Address
Instant removal with SafeUnsubscribe™
Privacy Policy.
Email Marketing by
Changing Lanes LLC
422 W Broadway
Maumee
OH
43537
THIS IS A TEST EMAIL ONLY.
This email was sent by the author for the sole purpose of testing a draft message. If you believe you have received the message in error, please contact the author by replying to this message. Constant Contact takes reports of abuse very seriously. If you wish to report abuse, please forward this message to abuse@constantcontact.com.
Vacation - Don't Take Stress With You!
We're quickly approaching the biggest vacation month of the year; not sure about you, but I am looking forward to some well-deserved time away. We are taking our three young grandchildren on a trip to Mackinac, MI and I am so looking forward to it. The trick, however, is to manage those important days and hours prior to vacation, without totally stressing out with thoughts such as, "If I get all my work done, then I can go enjoy myself."
Unfortunately, with that approach, we usually find ourselves working long and hard right up until we leave. This actually triggers the fight or flight response in our body, releasing cortisol, and creating stress. If this is compounded by skipping self-care routines, like exercise or meditation, in an attempt to fit all the work in, we could end up carrying the stress into our vacation. You may have noticed that it takes time to clear stress-related chemicals from our system, which explains why for many of us it's the third day of vacation before we seem to feel relaxed.
Instead of falling into this common trap, there are a few things we can do:
1. Intend - make a decision that you want to have a calm, stress free week prior to vacation. Consciously pay attention to yourself and how you are feeling and if you notice stress, take actions to release it.
2. Delegate - vacation is an excellent opportunity to pass some tasks to your employees or possibly hire a virtual assistant. Be sure to delegate the tasks several days in advance of your departure to give them time to ask questions.
3. Prioritize - do this two weeks in advance of your vacation, so you know what projects and actions must be completed prior to vacation. Create a list of what absolutely can't wait until you return and make a plan for completing these actions. Schedule the other projects/tasks onto your calendar for after vacation.
4. Wrap up - dedicate the last day before vacation to wrap up loose ends, meet with anyone you've delegated actions to, set up your voice mail and email Out of Office Reply and leave yourself a note detailing where you got to on unfinished business, what tasks you postponed, what will need immediate attention when you return and anything else you might worry about while on vacation. Check out Linda's tips below for reentry.
It's much easier to relax and have a great vacation when we consciously manage the week leading up to our time off. Have a good time!
Copyright 2010 Pat Altvater
Transforming Bodies and Minds
http://www.outsmartweight.com/
http://www.momsoutsmartingobesity.com/
http://www.choosesuccessbook.com/
419-344-6613
Falling Through the Cracks - Part 2
Whenever I hear "falling through the cracks" or a variation of that, I'm sent back to the hot summers of my youth and the Central Park Pool where swimming was ten cents, the water was cold, and the changing/shower room had a floor that was wooden decking material over a cavernous space 20 feet below.
Whoa be the person that dropped their ice cream money or special belonging down there as it required a written request for its retrieval and, I was told when I lost my quarter "How will we know it is your quarter? Do you know the date on it?" I never got the quarter back. . .
Keeping your plan from falling through the cracks during vacation is a good way to practice using some productivity ideas. Here is my plan to stay on track:
1. Identify the strategic next action (SNA). When I am going to be gone for more than a few days, before leaving, I look at my upcoming work and then ask "when I return, what is the next strategic action I need to do on this project or task AND does it support my desired outcomes (goals)." I usually schedule the first half day back as SNA calls/email . And I actually use that category on my calendar and block the space.
2. Book it on your calendar before you leave. Controlling your calendar after time away from the office does require some proactive thinking. In my last job where I had a staff, I'd usually suggested we have a staff meeting at lunch on my first day back - "bring your thoughts, questions and ideas and we will all catch up". That did two things - kept them out of my office in the AM and gave me the opportunity to let everyone know what my agenda for the future was and get them to recommit to their projects.
3. Before leaving, review your plan completely. Make sure each goal or objective is being attended to upon your return. If a goal or objective is not being cared for it will likely fall through the cracks and you may find yourself having to requisition future time to retrieve it - time you may not have available then.
Both David Allen's Getting This Done (GTD) and Sally McGhee's Take Back Your Life! use Strategic Next Actions to stay on track. This may be too "heavy" for your beach reading, but they are great refreshers for staying on top of your life!
A little proactive planning will lead to a smooth reentry and the decompression from your vacation will last longer!
Copyright 2010 Linda Fayerweather
Is what you are doing right now helping you achieve your goals? If not. . . stop doing that!
http://www.changinglanes.biz/
419-897-0528
Just Like Them - Workshop in Maumee OH
Date: Thursday, July 28, 2010
Time: 1:00pm - 4:00pm
Location: Danberry Real Estate Briarfield Conference Room
Street: 3555 Briarfield Blvd. Maumee, OHsoc
Description
Marketing has changed dramatically in the last few years and if you are confused... you are not alone. Join Maumee Chamber of Commerce members Todd Pillars of SendOutCards and Linda Fayerweather of Changing Lanes, LLC as they help you wade through the mountains of media to find what works best for your business.
You will learn:
- Easy techniques you can start using tomorrow
- How to laser target your efforts
- What tried and true marketing still works
- What social networking is and why do it
- Why local networking events are crucial and how to maximize your efforts
- Handouts to maximize your education
And LOTS of time for Questions
Stop guessing and Start making sense of the New World (Wide Web) Order!
Who Should attend?
- Business Owners
- Sole Proprietors
- Partners (get a group rate)
- Business Decision Makers
Register at http://justlikethem.eventbrite.com/
Forward email
This email was sent to lindafay@bex.net by linda@changinglanes.biz.
Update Profile/Email Address
Instant removal with SafeUnsubscribe™
Privacy Policy.
Email Marketing by
Changing Lanes LLC
422 W Broadway
Maumee
OH
43537
THIS IS A TEST EMAIL ONLY.
This email was sent by the author for the sole purpose of testing a draft message. If you believe you have received the message in error, please contact the author by replying to this message. Constant Contact takes reports of abuse very seriously. If you wish to report abuse, please forward this message to abuse@constantcontact.com.
Monday, July 19, 2010
Are you Still Playing Football with Lucy?
In case you have forgotten, Charles Schultz cartooned about Charlie Brown and Lucy playing football. Lucy would hold the football for him to kick but when he approached it, she'd lift it up and Charlie Brown would end up on his back - 42 times this happened starting in 1951.
At this website http://www.fivecentsplease.org/dpb/football.html you can see all the different answers that Lucy has for Charlie Brown from "you might get your shoes dirty" and including "to everything there is a season".
Strategic Next Actions are those simple tasks that keep us on the road to achieving our goals, those meaningful objectives. And what does this have to do with Lucy and Charlie Brown? Maybe insanity or maybe just not realizing that using the same tools, personnel and skill to get things done will lead to similar results. For 42 times after asking, pleading and reasoning with Lucy, Charlie Brown still ends up on his back. Often when we set goals for our business and personal life, we forget the same approach, even with a new flourish (like new uniforms or rearranging the office furniture) will likely get the same results. That is what playing football with Lucy is all about.
To start a new game, try to take these five steps to a different outcome.
First, Start simple. Just for a few days, think about strategic next actions as scheduling the obvious. To get different results in our hectic lives we need to schedule more than just the meeting date, we need to schedule the time to prepare for the meeting, too. I don't schedule each phone call that I need to return, but I do schedule blocks of time to deal with calls and emails.
Second, look forward to the next 14 days, what deadlines are you facing? Ask yourself "Is this activity something that supports my goals?" Is this something I need to do to maintain my license, skills, health?" Now, if in the next two weeks, those deadlines don't support your future, ask yourself "Why am I doing these?" Meaningful goals require meaningful work.
Third, now, look at those deadlines and identify what are the next strategic actions that need to happen. These actions have no dependencies--nothing else is needed to complete the action. Write these actions down and schedule them.
Fourth, use strategic next actions to keep you from playing football with Lucy. If Charlie Brown had thought about having a different outcome, he might have started with his approach (his skill), the football (tool) or the ball holder (personnel). By changing the personnel (which he did in 1999), he had a different outcome - although Charles Schultz never shared the result.
Last, when you find you are slipping back to the football field with Charlie Brown and Lucy, just think about what Lucy said "How long? All your life, Charlie Brown ... all your life?" Maybe adding a little humor to some of the repetitive habits we all have, will kick us to a different place.
Copyright 2010 Linda Fayerweather
Changing Lanes LLC
419-897-0528
http://www.changinglanes.biz/
Don't Hang Up.
While watching a video of Bob Burg speak during a presentation of his Endless Referrals system something he said hit me like a ton of bricks. Bob said "Your prospects won't hang up on you while they're talking about themselves".
I don't get many hang ups working with warm market and referrals (I can't remember the last one) but I've had a few over the years, mostly from cold calling. You've probably had one or two; you hear a "not interested" and a click right in the middle of your "pitch".
The reason I love this quote is that you can picture your prospect, in the middle of doing what they do during their busy day, and see them thinking "what's this guy trying to sell me". Click. If you're prospect ever feels like they're being sold, you've lost them.
So here's your mission, should you choose to accept it; Think of 3 questions that you can ask to find out IF the person on the other end of the phone is a good candidate for your product or service. Keep them short and to the point but make sure that each question creates a curiosity about what you do.
For example:
Hello Mr. Prospect. My name is ____ and I help busy business owners get more people in their door without working any harder than they are now.
Do you look for easy new ways to find more customers? Listen to the answer!
Is creating pre-sold and pre-qualified leads something you'd want to know more about? Listen to the answer!
If there was a way to generate more good will and more referrals for less than the cost of most candy bars is that something you'd want to see? Listen to the answer!
Quickly show you them they have a problem you can solve. Get your prospect to ASK you how quickly you can show them how to alleviate their pain. Guaranteed they won't hang up on you while you're setting the appointment.
Copyright 2010 Todd Pillars is an Appreciation Marketer with Send Out Cards.
Please contact him today at 419-855-2273 or tpillars@gmail.com to SUPERCharge your Referrals! Surf on over to http://www.sendoutcards.com/tpillar s to send someone an Awesome Day!
 |
| United Artists October 2004 |
At this website http://www.fivecentsplease.org/dpb/football.html you can see all the different answers that Lucy has for Charlie Brown from "you might get your shoes dirty" and including "to everything there is a season".
Strategic Next Actions are those simple tasks that keep us on the road to achieving our goals, those meaningful objectives. And what does this have to do with Lucy and Charlie Brown? Maybe insanity or maybe just not realizing that using the same tools, personnel and skill to get things done will lead to similar results. For 42 times after asking, pleading and reasoning with Lucy, Charlie Brown still ends up on his back. Often when we set goals for our business and personal life, we forget the same approach, even with a new flourish (like new uniforms or rearranging the office furniture) will likely get the same results. That is what playing football with Lucy is all about.
To start a new game, try to take these five steps to a different outcome.
First, Start simple. Just for a few days, think about strategic next actions as scheduling the obvious. To get different results in our hectic lives we need to schedule more than just the meeting date, we need to schedule the time to prepare for the meeting, too. I don't schedule each phone call that I need to return, but I do schedule blocks of time to deal with calls and emails.
Second, look forward to the next 14 days, what deadlines are you facing? Ask yourself "Is this activity something that supports my goals?" Is this something I need to do to maintain my license, skills, health?" Now, if in the next two weeks, those deadlines don't support your future, ask yourself "Why am I doing these?" Meaningful goals require meaningful work.
Third, now, look at those deadlines and identify what are the next strategic actions that need to happen. These actions have no dependencies--nothing else is needed to complete the action. Write these actions down and schedule them.
Fourth, use strategic next actions to keep you from playing football with Lucy. If Charlie Brown had thought about having a different outcome, he might have started with his approach (his skill), the football (tool) or the ball holder (personnel). By changing the personnel (which he did in 1999), he had a different outcome - although Charles Schultz never shared the result.
Last, when you find you are slipping back to the football field with Charlie Brown and Lucy, just think about what Lucy said "How long? All your life, Charlie Brown ... all your life?" Maybe adding a little humor to some of the repetitive habits we all have, will kick us to a different place.
Copyright 2010 Linda Fayerweather
Changing Lanes LLC
419-897-0528
http://www.changinglanes.biz/
Don't Hang Up.
While watching a video of Bob Burg speak during a presentation of his Endless Referrals system something he said hit me like a ton of bricks. Bob said "Your prospects won't hang up on you while they're talking about themselves".
I don't get many hang ups working with warm market and referrals (I can't remember the last one) but I've had a few over the years, mostly from cold calling. You've probably had one or two; you hear a "not interested" and a click right in the middle of your "pitch".
The reason I love this quote is that you can picture your prospect, in the middle of doing what they do during their busy day, and see them thinking "what's this guy trying to sell me". Click. If you're prospect ever feels like they're being sold, you've lost them.
So here's your mission, should you choose to accept it; Think of 3 questions that you can ask to find out IF the person on the other end of the phone is a good candidate for your product or service. Keep them short and to the point but make sure that each question creates a curiosity about what you do.
For example:
Hello Mr. Prospect. My name is ____ and I help busy business owners get more people in their door without working any harder than they are now.
Do you look for easy new ways to find more customers? Listen to the answer!
Is creating pre-sold and pre-qualified leads something you'd want to know more about? Listen to the answer!
If there was a way to generate more good will and more referrals for less than the cost of most candy bars is that something you'd want to see? Listen to the answer!
Quickly show you them they have a problem you can solve. Get your prospect to ASK you how quickly you can show them how to alleviate their pain. Guaranteed they won't hang up on you while you're setting the appointment.
Copyright 2010 Todd Pillars is an Appreciation Marketer with Send Out Cards.
Please contact him today at 419-855-2273 or tpillars@gmail.com to SUPERCharge your Referrals! Surf on over to http://www.sendoutcards.com/tpillar s to send someone an Awesome Day!
Monday, July 12, 2010
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
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
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