Sharing helpful links and other valuable info for small business owners and anyone just interested in gaining financial clarity.
Helpful Tip #1: The Way of Withholding
Simply put, if you're earning money, you need to pay a portion to the government as it is earned. If you receive a paycheck, the amount deducted from it and sent to the government is called "Withholding Tax".
Confirm that you're Withholding the right amount with this nifty calculator courtesy of the IRS. Why should you do it?
Tax changes in 2018 mean you can't assume that what worked for you last year is OK for this year
You want to avoid underpaying taxes which could lead to a penalty
Find out if you're overpaying - you can use that money now, why wait for a refund?
What do you need to do it?
Last year's tax return
The Checklist Manifesto
Just read "The Checklist Manifesto" and am fascinated how the unflashy yet elegant checklist has radically transformed results in increasingly complex fields like medicine, aviation, construction and even restaurant kitchens. How it can create lifesaving teams from previously unintroduced players.
Yet this discipline-centric book takes a turn in praise of improvisation using as example the disastrous response to Hurricane Katrina and the dangers of not delegating decision making instead of placing trust in human nature to do the right thing.
Here's Melinda, my wife, and I helping rebuild in New Orleans as part of St. Bernard Project.
Helpful Tip #2: The Business vs. Personal Dichotomy
The The easiest way for a small business to maintain a clear picture of their finances is to distinguish between business and personal expenses.
Keep ‘em separate!
How: Set up a separate bank account and credit card for your business.
It’s never too soon, and, if the business grows as you hope, the value of this simple move only increases.
It will spare you from spending endless hours sorting through a swamp of transactions to determine which pertain to the business.
It will keep record keeping easier and make best practices like reconciling your accounts a breeze.
It will focus you on where the money is going. Cool right?
the solopreneur and small business accounting survey
If you feel like you're operating a bit in the dark in regards to the accounting end of your business, I've prepared the Solopreneur and Small Business Accounting Survey, a confidential survey that is a self-assessment of your financial insight into your business that has useful info built right into it that can help. It's playful yet will focus you on some key questions you should be asking yourself in order to build a successful business.
If you take the time to complete these 12 simple questions it can benefit you in two ways:
1) You can use it as a guideline to ask yourself some truthful financial health questions every business owner should take time to focus on and ...
2) You have the opportunity to turn it around at the end and ask me any specific question about your own business that I can help with, and, as a thank you for participating, I promise to get back to you within 10 days.
Answer as many questions as you like, feel free to skip those that are not relevant or if you don't have an opinion.
HELPFUL TIP #4: BECOMING A TAX MASTER
I keep hearing the question, “what deductions should I be taking on my taxes?”
And I thought, “how can I provide tax tips that are as easy to read as a grocery list?”
Make them into a grocery list.
That’s what I’ve done here.
The first page is the list and, if you want to delve in further
and learn strategies to keep your hard earned money in your pocket,