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If you are a small business, perhaps just a one man show, does it make sense to hire a bookkeeper to keep track of your business? Actually the answer to that depends entirely on your operation and just how involved your business is. If you generate a small number of simple invoices each month, and vendor payments are likewise small in number, then chances are you can save money doing the work yourself using bookkeeping software. If you generate a high volume of invoices or checks, then hiring help may make more sense particularly if the accounting function is taking up significant time that you could use more profitably running your business.

If you go the bookkeeper software route, and some of them are designed for total novices, you’ll want to be sure that you understand these basic accounting items.

1. Cash Or Accrual

Tax laws require that you set up a basis for your accounting and you have the choice of cash or accrual. Most businesses use cash when they first start out as it reflects actual money received and actual money paid out in an accounting period. Accrual is money earned but not necessarily received and expenses that you are liable for but not necessarily paid.

2. Chart Of Accounts

The chart of accounts is the backbone of any bookkeeping system. This establishes accounts for both income and expenses and then further breaks them down by type. For example you can have an account for “Communications” and have it further broken down to “Telephone”, “Cell Phone”, “Internet Provider” and “Postage”. Each item of income or expense will be recorded in the appropriate account.

3. Income And Expense Report

This is an essential report that compares income for a given period of time to expenses for the same time frame. Obviously this let’s you know if you made money or not. It can be as detailed or as basic as you want it to be and it can be an excellent tool to ferret out unusually high expenses and to develop trends in income.

4. Accounts Receivable

The small businessman’s Bible. The accounts receivable is a listing of open client invoices and lets you know just how much you can potentially collect and when. Further, it shows you which, if any, of your clients has not paid within terms and becomes your basic collection tool report.

5. Accounts Payable

This is the report as receivables except it focuses on what you owe. It is a listing of all unpaid invoices from vendors and when they are due. Obviously it can list out vendor invoices that have not been paid within terms.

6. Balance Sheet

This is the report your bank will want if you seek financing for your business. This is essentially a listing of the total value of your assets, liabilities and equity. It’s called a balance sheet because it works off the formula that assets equal liabilities plus equity. This report is also known as the Accounting Equation. Banks will look at the ratio of equity to liability and other measurements to determine your credit worthiness.

7. Real Time Customer Service

One really great feature of doing bookkeeping your self on bookkeeper software is the ability to pull up real time information. When a customer calls with a question on an invoice you can pull the data up immediately and answer the question. Without this ability you would have to call your bookkeeper to get current information and then get back to the customer.

Bookkeeping can be a somewhat tedious process but if you set aside a specific time each day to process the data you can effectively run your own books.

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A report was recently released that showed the White House, under the guidance of Karl Rove, sent members of the Cabinet to political events in 2006 to campaign for Republicans in tough races, at taxpayer expense. Mike Johanns took 38 of these trips, 2nd only to one other Secretary, and he was labeled a “superstar” for these trips by the Rove office. This was Johanns’ response during a recent debate. Scott Kleeb, his Democratic opponent, then laid it all out on the line.

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With ExpenseCloud, expense reporting has never been easier! Manage the entire expense management process online, either by creating expense reports for personal reimbursement, invoicing clients or tracking approvals across an entire company. ExpenseCloud imports expenses from thousands of credit card and bank providers; including receipt scanning and expense capture capabilities for Android, iPhone and Blackberry. We integrate with many popular online solutions specifically for small to medium size businesses such as FreshBooks, OpenAir, NetSuite, Intacct, Salesforce and Intuit QuickBooks (both Online and Desktop edition). The ExpenseCloud solution is provided by App7, a privately held company in Los Angeles, CA. Sign up for free at www.expensecloud.com.

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BT Global Services Refreshes Telecommunications Expense Management Service for MNCs (Competitive Intelligence Report)

BT Global Services Refreshes Telecommunications Expense Management Service for MNCs (Competitive Intelligence Report) Feature

BT Global Services Refreshes Telecommunications Expense Management Service for MNCs (Competitive Intelligence Report) Overview

BT refreshes its Telecomms Expense Management service for comprehensive multi-carrier mobile cost and management control. This helps improve BT’s mobility position compared to European rivals, but U.S. carriers may soon pose a global threat.

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The clock is running, but have no fear. There is still time to make plans, as the tax filing season nears. How clever, yet another poem from the host of the most complete business program on radio, “Better Business”. What can be done to reduce income tax exposure for 2006? Read on if dare, read on if you care.

Outside salesmen should take note. Get reimbursed for your business expenses, please. The life of the salesman is one where meals & entertainment and use of a personal auto create income tax deductions that are not terribly beneficial. They are recorded on form 2106 and lead to miscellaneous itemized deductions that are subject to a 2% adjusted gross income (AGI) floor. Besides this limitation, it is entirely possible that our client, the outside salesman, is subject to the dreaded alternative minimum tax or AMT. Getting into the AMT causes miscellaneous itemized deductions to be lost permanently in the winds leaving taxpayers stunned and bewildered. How can a defense be mounted against such a noble foe as the AMT? Get reimbursed I say. Get reimbursed for whatever your employer will allow. Here’s what to do.

In lieu of getting paid a final sales commission, gather all of your expenses for the year, including auto mileage. Multiply your business auto mileage by 44.5 cents, add your supplies and travel costs to your ledger, and present this expense report to your employer. Remember meals & entertainment will be limited to 50% so your employer might not be quick to offer reimbursement for this expenditure. Here’s how it can work to the benefit of both employer and employee. If one is due a commission of $10,000, turn the commission into expense reimbursement if you have $10,000 of expenses. By doing so, the salesman will receive income that is not reported for tax purposes and it will not matter that the 2% AGI floor and AMT are present as they will be handily defeated with this strategy. The salesman’s expenses will serve to keep the $10,000 commission out of income in the first place rendering the efforts of AMT and AGI thresholds useless. The employer is also happy. No employer paid payroll taxes of any kind will be due on expense reimbursements unlike the payment of commissions. This is truly a situation where everyone can be happy, how rare is that?

Other Things to Consider

If you started a new business during the year, understand this important fact. Income is not a prerequisite to having deductible business expenses. Suppose you started a sideline business or quit your previous job to begin the dream of owning a business. The 2006-year might have generated plenty of expenses without so much as a dollar of revenue. The good news is that current efforts will yield a boon for later years and current efforts will not be left unforgotten in the current year.

Expenses incurred for the current year will serve to offset income from other sources during the year (W-2 income, interest and dividends, etc.). Providing the business is organized as a sole proprietor, partnership, or S corporation (caution: the S corporation requires direct capital contributions from shareholders in order to create basis for taking losses) the taxpayer stands to get a tax benefit. Here’s where additional planning can take form. Suppose the new business owner determines that new equipment is needed. Is it better to place it in service during the current year, or wait until next year? To make this assessment, it become necessary to determine what tax rates are currently and what they will be next year. Suppose the taxpayer is in a 35% federal bracket for 2006. The business is projected to generate income in the next year that will put the taxpayer in the 15% bracket. The answer is to put the equipment in service during the current year and taking 179 expense if there is enough W-2 income from jobs of the taxpayer and spouse. W-2 income will give the taxpayer basis for taking the immediate expensing election of up to $108,000 for assets placed in service during 2006. An example of how this works would include a husband and wife with W-2’s totaling $80,000 start a business in 2006. They have expenses totaling $10,000 from the business and need to purchase equipment totaling $40,000. It is determined that it is more beneficial to take the 179-expensing limit in the current year as income will be minimal in 2007. The expensing limit of code section 179 limits the amount of deduction to income. Since income from the business is zero, the W-2 income counts as income from a trade or business thus allowing the full deduction of $40,000. This will drive the income from the taxpayers down to $30,000 ($80,000 -$50,000).

Checklist for other items to consider:

-Create a retirement plan and determine the best plan

-Don’t forget about auto expenses (mileage rate is 44.5 cents in 2006)

-Don’t forget the home office deduction if it applies

-Remember capital gains and losses

-Buying a principal residence

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Brethren, I count not myself to have apprehended: but [this] one thing [I do], forgetting those things which are behind, and reaching forth unto those things which are before, I press toward the mark for the prize of the high calling of God in Christ Jesus. Philippians 3:13-14

This is especially helpful if you’ve experienced past business mistakes that you are still paying the price for. Mistakes can do three things:

1). Hold you hostage to your past. Meaning that you have a hard time trying new things, approaching new markets or new business opportunities because you are afraid that “it” might happen again.

2). Propel you forward into a beautiful future because you’ve taken the necessary steps to learn from the mistakes by writing them out, forgiving yourself and re-shaping how you’d handle that situation if you could do it all over again.

3). Keep you doing the same things over and over. No matter what you touch. In this place, you repeat the same mistakes because you didn’t recognize them as the culprits that they are. You’ve got to shake yourself out of this pattern. The only time you should be content with repeating a pattern is when the pattern is delivering victorious results.

For most of us, the focus of forgiveness has been towards others. However, there comes a time for every business owner to forgive themselves for past mistakes. As a coach-consultant, I’ve had my share of business mistakes and for a while these mistakes held me back. I couldn’t see past them. I would literally, have many butt kicking conversations with myself about the mistakes I had made.

Until one day I received the revelation to forgive myself. This revelation came as a conviction of divine reprimanding to me if I wanted to move on beyond my past and reach toward the ultimate success I really desired.

So, here’s my coaches requests for you:

1. Create a 3 column page (in a word document or on a folded sheet of paper)

2. In the first column, write down every business decision, activity or partnership that you call a mistake (no matter how big or small).

3. In the second column next to each mistake, right down what you would have done differently.

4. In the third colum, write out your forgiveness statement for each one. For instance, I forgive myself for ______. The lesson I’ve learned is________. I am thankful for this experience.

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Pencil and paper or point and click: technology has created options for independent rental owners to effectively track income and expenses when preparing … special report): An article from: Units

Pencil and paper or point and click: technology has created options for independent rental owners to effectively track income and expenses when preparing … special report): An article from: Units Feature

Pencil and paper or point and click: technology has created options for independent rental owners to effectively track income and expenses when preparing … special report): An article from: Units Overview

This digital document is an article from Units, published by National Apartment Association on March 1, 2005. The length of the article is 2477 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Pencil and paper or point and click: technology has created options for independent rental owners to effectively track income and expenses when preparing to file taxes.(Service spotlight: special report)
Author: Jeanine Gajewski
Publication:Units (Magazine/Journal)
Date: March 1, 2005
Publisher: National Apartment Association
Volume: 29 Issue: 3 Page: 26(5)

Distributed by Thomson Gale

Pencil and paper or point and click: technology has created options for independent rental owners to effectively track income and expenses when preparing … special report): An article from: Units Specifications

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PRES. ARROYO FAMILY RUNS 9 FOUNDATIONS – TAX LOOPHOLE, TAX EVASIONS OR ANOTHER WAY TO HIDE WEALTH? LINK TO REPORT www.gmanews.tv MIKEY ARROYO MEDIA SUICIDE www.youtube.comPlease watch these two parts videos and forward them to all your friends, relatives, associates and all living souls who will help us move to a better Philippines. You all watched and witnessed Mikey Arroyo. This is a rare situation where the son of our President Gloria Arroyo reveals the ways and secrets on how public officials can manipulate and steal millions of public money. Our government officials have forgotten that these money are intended to build schools, hospitals, fund scholarships for deserving students, health care, housing for thousands of families, fight poverty, food for the children…etc They have taken the rights of the poor people to live and survive. Their human dignity lost as we watch videos on Youtube of children and families eating garbage gathered from dump sites and restaurant garbage bins. Each day is a struggle to survive. We believe that these videos are helpful. There will be a long list of candidates in this coming 2010 elections. Some will aim to get their power back so they can continue to live their lavish and wasteful lifestyles at our expense. We must not let this happen again. “Remember, if you make an informed decision, regardless of who you pick, you are not throwing your vote away.” 2010 will be the year to elect an effective leader who will help move our country …

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The system set up for MP’s expenses was for people with honour and integrity, not for people without scruples, and who regard expense claims as a right. Hence all this talk from MP’s about not having broken any rules for claimingfor items at the highest amounts payable -whether or not the items were actually purchased – as no receipts are required to prove this. Claiming twice over in some cases, and making a repayment when caught and blaming human error for false claims. THESE ARE ALL FEEBLE EXCUSES BY MEEK PEOPLE. Good Ridance at the next election.

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Business expenses are a fact of life. Before you start your business you need to take some time and create a budget that lists your main business expenses and what you estimate each will cost per year.

The best way to do this is to use a cash flow planner. It will take you through planning for your business expenses and the cash that will be leaving your business 13 weeks at a time, or one quarter at a time. Let’s look at some of the common business expenses in detail:

Salary – by six to nine months down the road, you should be pulling in enough income to take a draw. This is a significant business expense at the start, even if you’re only taking out $400-$500 a week.

Employee benefits – another huge area of business expense. Search around to find out what people are paying right now. If you are still employed, try to find out what the total monthly premiums are. Remember to account for the fact that you might not get a group discount rate.

IRA – this is a business expense that many people forget about. You will want to retire, so make this or some other retirement vehicle a priority now.

Payroll taxes – this is a business expense that you should talk to your accountant about. He or she will be able to assist you better than any general guidelines.

Training and certification – typically you should factor in about $1,000 a year for this.

Dues and subscriptions – expect this business expense to come in at a little over $300 a quarter or $1200 a year.

Products purchased for internal use – here we’re talking about spare PC systems and parts. You are wise to budget this business expense at between $3,000 and $4,000 per year. The key here is to only purchase items that will bring you immediate ROI. If it doesn’t tie directly to billable hours, then it is a business expense you can’t afford right now.

Telephone and ISP expenses – budget for about $110 a month for a business phone plus an inexpensive DSL account.

Marketing and promotion – this will be a large business expense. Plan for $5,000 to $6,000 a year.

Commercial insurance – budget for $2,200 per year.

Transportation – a fair estimate is $30 per week.

Professional services – typical yearly totals are around $2000.

Corporate income taxes – this is another business expense that you need to discuss with your accountant.

Loan payments – these will be specific to your situation but need to be included in the budget.

The Bottom Line on Business Expenses

Business expenses will happen on a daily basis. To plan effectively you should use a cash flow planner or spreadsheet to keep track of your budgeted business expenses on a regular basis. Some expenses can be budgeted for based on common experience. The others will need to be discussed with your accountant or banker. There are a lot of variables, but the common factor is the need to budget carefully for your business expenses.

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