Posted by Stephanie Valentine on Sep 8, 2009 in
Small Business Tax Tips,
Small Business Technology 
19 minutes is all it takes me per week to have a worry-free tax season for my small businesses. I timed it, literally. You see, I’ve been studying up on how to maximize my small business tax deductions, and I’ve discovered what it takes to keep the IRS happy:
1. Know the rules as they apply to your business and follow them
2. Keep orderly small business tax documents
3. Have a great accountant
Now that might sound like a lot of work, especially the part about knowing the rules and documenting everything, but it doesn’t take long, really.
Discovering Small Business Tax Deduction Rules
So everyone knows that the IRS has rules, lots of them, and that if you don’t follow them you will get in dutch. What most people don’t know, though, is how to interpret those rules so they apply to you and your small business. And being that the tax code is some 18,000 pages long, it’s going to be pretty hard to figure out which small business tax deductions apply to your organization, and how, just by reading the tax code.
That won’t do at all, which is why you need an interpreter. I like Ron Mueller’s tax tips and books because they are easy for me to understand (check them out at www.homebusinesstaxsavings.com). The website is for home businesses but they apply to a lot of small businesses as well, especially if you keep a home office as well as a regular office. The best way to figure out how IRS laws apply to your business to get help from “Cliff Notes” tax interpreters like Ron. I’ve also gotten great information from other tax books for some of my businesses that are very specific, like my horse business.
Small Business Tax Documents - Maintaining Order
If “location, location, location” is the key to success in real estate, then “document, document, document” is the key to success in reducing your tax burden and defending your position, should the IRS ever inquire. While documentation sounds like a lot of work, it’s really not if you get into a routine. As I said earlier, it takes me on average about 19 minutes per week maintain my small business tax documents.
For anything you want to claim as a business expense or tax deduction, you basically have to document the who, what, when, where, and why. If you keep a strong business calendar or activities diary, most of the documentation can go in there. The rest can go into Quickbooks or some other similar bookkeeping software. If you do your documentation during the day or at the end of each work day, it literally won’t take you more than 19 minutes. I have three small businesses, and it only takes me that long.
For more tips, visit Ron’s website or check out some of the relevant blog posts here:
Proving to the IRS That Your MLM Tax Deductions Are Legitimate, Part 1
Proving to the IRS That Your MLM Tax Deductions Are Legitimate, Part 2, Business Travel
Mileage Deduction - IRS Rules for Recordkeeping
Tax Deductible Business Expenses Even Your Accountant Doesn’t Know About
Deductible Business Travel Expenses Allowed by the IRS
Small Business Owners: How Long Should You Keep Tax Documents?
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Photo credit: Free Digital Photos
Tags: IRS, small business tax deductions, small business tax documents
Turn Your Small Business Model Inside-Out
Times of economic turmoil offer small business owners some of the best opportunities to see their businesses in a different light. Economic upheaval gives us an excuse (as if we need one) to examine our business model and, if need be, turn it completely upside down.
One enterprising small business owner, dentist Thomas P. Roemer, has done just that. While most dentists work out of traditional offices, Dr. Roemer works out of a building at the world’s largest truck stop in Walcott, Iowa. Roemer used to have a practice in the nearby town of Davenport, but recently decided to open up an office at the truck stop. Why? Because he has always gotten consistent business from long-haul truck drivers who were in pain and in need of immediate help. That gave Roemer an idea.
Go Where the Patients Are
While many doctors and dentists see their businesses shrinking as people try to save money by skipping regular checkups and dental cleanings, people in pain need immediate help. The truckers who call on Roemer need help now, and the truck stop gets 35,000 visitors per week. As Roemer puts it, “You have people walking in holding their jaws in pain. Treatment is not optional — they need to see a dentist, and they need to see me now.” Thus Roemer gets a steady stream of business from people who cannot opt for a cheaper solution because their pain is overwhelming.
Instead of attempting to bring patients into his practice consistently by scheduling regular checkups (a technique that doesn’t work well when people are reluctant to spend money), Roemer brought his practice to patients who are begging for help, no questions asked.
Can You Emulate Dr. Roemer?
Does this give you some ideas for your business? Does this spark ideas on how you might turn your business model inside out? Here are some questions you might ask yourself about your business and your customers:
- How can you go to where your customers are instead of trying to bring them to you?
- What are your customers willing to spend money on, no questions asked?
- When are your customers willing to spend money, no questions asked?
- Where are your customers when they might need your services?
- In what circumstances might your customers be more willing to hear what you have to say?
Can you pull a Dr. Roemer turnaround on your small business model?
Photo credit: Tooth-Brush
Tags: business model, Dr. Roemer, small business, small business in recession
Posted by Stephanie on Mar 10, 2009 in
Small Business Technology 
With small businesses already struggling to stay afloat in the recession economy, it’s more important than ever to stay on top of the trends that will boost your business (lest you sink!). Small Business Trends has put out a great list of 10 technology trends for 2009 that is worth reading.
As a small business owner you obviously have a lot to juggle and technology isn’t your only focus. However, this list of technology trends has tips that even the least techno-savvy business owner will want to know about. For instance, this list highlights the importance of social media for small business, especially those that want to network not just with their own customers but also with people who are not yet customers.
This list also highlights another important trend: the widening gap between small businesses that have an online presence and small businesses that don’t. The bottom line is that you MUST have an online presence … but how will you do it? Is a website enough or do you also need a blog and a forum?
This list doesn’t answer all of these questions but it does highlight the questions you should be asking about your small business’ state of preparedness in terms of technology trends. Other trends include netbook adoption, broadband usage, cell phone software, video-conferencing and more.
Check out these techie trends here.
Photo credit: Computer Technology Fortune
Tags: online presence, small business technology trends, social media
