What’s Your Number One Secret Business Weapon?


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Often seen as a necessary evil, bookkeeping often takes hours of time for the owner.

This typically boring and tedious task is the primary reason the majority of small business owners do not keep their finances up to date on a monthly basis.

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Bookkeeping, as mundane as it may appear, is actually the #1 Secret Business Weapon when it comes to business management and growth.

  • Wasting Too Much Time

Many business owners try to do bookkeeping themselves or do not have the professional help they need.

Although we all know that time is money, many business owners do not put enough VALUE on their time.

How you value your time is extremely important to your business. Leave the tedious and time-consuming task of bookkeeping to the professionals.

A bookkeeper will know what to record, how to record it, and most importantly, the accounting changes that affect a business on an ongoing basis. Besides saving you time, it also frees up more of your time so you can work your business like a business so it will pay like a business.

  • Improper or Poor Record

Keeping Improper or poor receipt and record keeping is common for businesses.

It is easy to lose receipts or forget about those small expenses that seem insignificant. Maintaining accurate records on a monthly basis and with a proper filing system can save you time and money on your income taxes.

It can also provide the necessary documentation in the event that you are audited by the IRS. In case of a potential audit, accurate records of income and expenses could save you thousands of dollars.

  • Improperly Categorizing Expense

If you or someone you have hired does not have the knowledge of formal bookkeeping practices, this can become a problem. Accurately tracking income and expenses in the correct categories ensures proper measurement of profitability. Knowing the different tax treatments of each income and expense category can result in significant tax savings as well.

  • Not Reconciling Bank Account

Not having separate bank accounts for personal and business activities can become an issue. If you are audited, you may need to provide complete records of business related activities that are separate from your personal expenses.

Make sure that your bank statements are properly reconciled every month. This will help to minimize errors and identify potential issues.

  • Not having Back Up

We live in a world dependent on technology. The dreaded hard drive failure is a when not an if. It is important for every business to back up their data to avoid potential losses.

  • Neglecting Sales Tax

With many businesses, not reporting sales tax and not accounting for it is a common error in bookkeeping. Oversight in collection and reporting of sales taxes can result in significant amount of fines and penalties.

Alternatively, incorrect data entry may result in a higher total sales amount and overstated sales taxes due.

  • Not Classifying Employees Correctly

Businesses often have a combination of both employees and independent contractors.

Make sure these are properly classified to avoid misfiling and overpayment of taxes to the government. Employee classification is a hot button audit target. Get competent advice before you assume it is ok to pay someone as a contractor rather than an employee.

  • Bad Petty Cash Management

Business owners often operate with a small amount of petty cash, but have little or no knowledge on how to track it. Be sure to set up a system which allows you to track the cash kept on hand for the business and what it is being used for.

Buying a petty cash lock box from your local office depot and obtaining receipts for all disbursements is a great way to start.

  • Poor or Lack of Communication

It is important to have strong communications between the bookkeeper and employees of the Company. Keep your bookkeeper involved and integrated with what’s going on inside the business. This helps the bookkeeper to create financial statements which reflect the true operational needs of your business.

  • Neglecting to Track Reimbursable Expenses

Many small business owners pay for expenses out of their personal funds.

As time passes, there is increased risk that these expenses get overlooked. Failure to account for these reimbursable expenses can result in lost money as well as lost tax deductions. Create a company policy to make it easy for the Company to easily and consistently track and record reimbursable expenses.

Now that you have read through the 10 Most Common Bookkeeping Mistakes, take a look at your business and determine whether any of these apply to you.

NOW is the time to make some easy changes to upgrade your bookkeeping system and turn this task into your #1 Secret Weapon for Business Management and Success!


About the Author: Rhonda Johnson is Tax Educator extraordinaire! A specialist in home-based business taxes, she captives audiences with her enthusiasm. Rhonda has dedicated over 25 years to the direct selling profession, as a business owner and a national speaker and author. “Help me Rhonda” has trained thousands of direct sellers nationwide. She founded Accountable Solutions more than 20 years ago and based the business on the cornerstone of year round tax service to clients. She is at the forefront of an elite group of forward thinking accounting professionals who specialize in meeting the needs of direct sales, network marketing professionals and home based business owners. Visit her at www.MakingTaxAGame.com

Please Note: The MyDSWA content is copyrighted material. You may share it on the web by creating an excerpt and linking back to the page using an active hyperlink. Please do not republish any content in its entirety on the web. You may however, publish any article you find on this site in print offline provided you credit the article to the author and the DSWA and include the website reference. http://www.MyDSWA.org

Using The Direct Sales Home Office Deduction


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Benefits Of Home Office Deduction

A direct sales business has benefits beyond meeting new people and generating your own income.

Cash Flow Results With Home Business

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As a home-based company, your direct sales business also offers tax deductions that you could not normally take. When you use your home as an office, it is like generating a second income. To take full advantage of the potential benefits of tax deductions associated with a home office, become familiar with the different kinds of information you need to collect for your tax accountant.

To Determining the full extent of your home office tax deductions is something you should leave to an expert. But you can help your cause by collecting all of the information needed to lower your income taxes when working from home.

If growing a sales organizations is one of your goals for this coming year then it should be included in your business plan. Writing a business plan is creating a path to your goals that justifies your home office deduction.

What Expenses To Deduct?

There are many things that are deductable.  It is important to find an accountant who is direct sales friendly.  A few of the expenses to deduct include:

– Office Equipment

Any kind of equipment you use for your office could be a deduction on your income taxes. Keep receipts for every phone, computer, monitor, printer and any other office equipment you purchase. If you do not have a receipt for the equipment you are using, then make a note of the model, manufacturer, serial number and retail price for your accountant.

– Office Supplies

When you use office supplies in home-based business, you could be creating tax deductions for yourself. Supplies such as printer ink, blank CDs, labels, paper, envelopes and pens are all deductible if you used them for your business.

The major difference between office supplies and office equipment is that you will need to have receipts for every office supply you purchase. Keep a log of all of your purchases and make sure you have a store receipt to back up every purchase.

– Office Area

Measure the size of the area you use for your office space at home and bring that number to your accountant. It is easier if you have your work area in one central location in the house and you can measure the whole thing with one set of dimensions.

You will want to collect all of your utility bills for your home along with any Internet access bills to bring to the accountant as well. Your accountant will use the size of your home office to determine how much of your utilities are deductible on your income taxes.

– Mileage

The miles that you drive while setting up and attending home demonstrations are all deductible on your federal taxes. You can purchase a log book that will help you keep detailed records on the miles you have traveled and the purpose for each trip.

Learn More About The Home Office Deduction

Tax deductions associated with a home-based business can act like a second income. Once you have learned how to collect all of the pertinent information, the rest is up to your tax accountant.

Deb Bixler teaches home business owners how to increase cash flow at home.

Learn more about the home office deduction by visiting her site and listening to an hour long training seminar for FREE.


About the Author: Deb Bixler is the 2011 DSWA Speaker Of The Year and the DSWA party plan adviser. Visit her website the party plan training center for real action steps to grow your business: www.CreateACashFlowShow.com or follow Deb Bixler On Google+ 717-751-2793

Please Note: The MyDSWA content is copyrighted material. You may share it on the web by creating an excerpt and linking back to the page using an active hyperlink. Please do not republish any content in its entirety on the web. You may however, publish any article you find on this site in print offline provided you credit the article to the author and the DSWA and include the website reference. http://www.MyDSWA.org

Have A Business Power Hour!


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business power hour We’ve all had those days that just seem to drag on and on. Days when you seem to be working, but you never get anything accomplished. For some entrepreneurs, those days are rare, but inevitable.

However, for many people in the direct sales business, those lagging, unproductive days happen far too often.

What is a Power Hour?

How many hours during the week do you feel you are creating ideas, applying these ideas to making your business a success, and producing work at the top of your game? The more hours you are working at your peak, the more successful your business will be. These hours in which you are able to completely focus on a task and produce results are your POWER HOURS!

Though a successful direct sales business relies on power hours to succeed, no one can expect to work uninterrupted and completely focused on a task for an entire day. And guess what? You don’t need to have a week full of power hours to produce results. You only need a few of them.

Successful people know how to focus when focus is needed. They realize that a power hour is a small block of time and doesn’t need to last for an entire workday. You will be amazed at how much you can get done in a few short hours. With no interruptions, no distractions, and a strong desire to achieve results, great things can be accomplished!

Organize A Regular Direct Sales Business Power Hour

Many direct sales consultants organize a regular power hour divided into 3 or 4 small segments for important task. In doing this and scheduling a power hour weekly or biweekly you will be more effective than attempting to squeeze things in.  You may organize every power hour into specific functions rquired for success in your particular business like:

  • 15 minutes bookings follow-up
  • 15 minutes recruiting follow-up
  • 15 minute host coaching
  • 15 minutes wrap up of activities generated

A true power hour is the time when energy, time, technique, and focus converge. There are times you may have one or more of these in sufficient quantities, but mastering a power hour takes all four. Energy, time, technique, and focus converge to have a noticeable impact on results because this is your peak time – your POWER HOUR!

What Can Power Hours Do For You?

  • Power hours will help you achieve results faster than you ever thought possible.
  • Power hours will help you work less. In this case, less is truly more; you’ll work less, but achieve more.
  • Power hours will help re-energize you. Have you ever had that feeling after reaching a goal; the kind where you feel more focused, more alive, more motivated? That’s what power hours can do for you.

There is no denying the fact that some work days just go by slowly. It is also true that some days are so unproductive that you might as well have stayed home in bed. However, by mastering the use of power hours you can get more done in less time. If you really want to stay home one day, just do it. By using power hours, you know you’ll get more done than most people who never take a break!

Direct Sales Business Training

Visit the Create A CashFlowShow direct sales training website for more party plan and home business tips and strategies. Named as one of the top 5 direct sales – party plan websites there are over 500 pages of FREE training for direct sales consultants.


About the Author: Deb Bixler is the 2011 DSWA Speaker Of The Year and the DSWA party plan adviser. Visit her website the party plan training center for real action steps to grow your business: www.CreateACashFlowShow.com or follow Deb Bixler On Google+ 717-751-2793

Please Note: The MyDSWA content is copyrighted material. You may share it on the web by creating an excerpt and linking back to the page using an active hyperlink. Please do not republish any content in its entirety on the web. You may however, publish any article you find on this site in print offline provided you credit the article to the author and the DSWA and include the website reference. http://www.MyDSWA.org

 
 
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