Seattle Small Business Blog

April 16^th is National Accountant Appreciation Day. After months of hard work, it is time to give back to the person who waded through the raging river of your return.

Imagine if you had to prepare your taxes yourself. How much would you tip yourself if you had to put everything together and certify that it all was correct and accurate to the best of your ability? Take that idea and triple it and you’ll have an idea about the actual worth of your CPA.

Here are some ideas for things you can do to show your tax accountant that you truly appreciate their time and energy spent in keeping the IRS satisfied:

Pens and pencil sets

A nice pen set will always go a long way with professionals. There is just something about feeling the weight of a well-balanced pen or nice mechanical pencil in your hand. Adding engraving or a special holder will personalize the thank you even more.

Donations to charities

Making donations in your accountant’s name, or the name of their business, will also go a long way to show your appreciation.  While they are focusing on your business and how to maximize your deductions, they may miss out on some of their own donations, and thusly, their own business deductions.

Gift certificates

After spending so much time away from their family, your CPA deserves a family night out. Why not get together with some of the other clients on your CPA’s roster that you know and all chip in for a nice meal at that fancy new restaurant in town.  Or, how about a weekend getaway for your accountant and his family. Showing your accountant that you are aware they have a family and that they often put their family on hold during tax time for you, let’s them know that you really care about them and their personal life.

Recommend your accountant to others

Letting your friends and family know about what a good job your CPA does, not only helps their business out, it also shows that you think highly of them and appreciate their good work. Helping grow their business will pay off dividends because you become a personal marketing team and your accountant will go the extra mile to help you wherever he or she can.

When all else fails, ask

If you still have no idea what to get your CPA for all their hard work, just ask them what you can do for them.  Tell him or her that you sincerely wish to appreciate their hard work with something tangible, a token, something they will enjoy and use.  Just make sure that you follow through with their request.

No matter what you decide to do, make it a point, on April 16^th, to do something to show your accountant you appreciate them. Bring them food, buy them something nice, treat them to a meal, or help them build their business by spreading the word about their services. If you don’t have any ideas, make it a point to ask your accountant what they would like.  Then follow through to make Accountant Appreciation Day a very good day for you and the accountant you appreciate.

Getting your tax return is one of the happiest feelings we tax payers know.  But, that money may be burning a hole in your pocket which makes it ripe for impulse spending.

Many times, people get their tax refund back and are not really sure what to do with it. This usually leads to poor decision-making and a loss of precious funds. Here are some useful ideas for how to use your tax refund this year.

1. Pay debts – individuals use their tax refunds to pay off old debts, so why not do the same for small businesses? Pay off that dangling bill for the electrical work you had done, or finish purchasing the forklift you started paying on last October. Paying off smaller debts is a great way to use your tax return because it increases your net worth; less debt means more overall value.
2. Invest – Stocks and bonds are a great way to think of investing, but you own a business now. What kinds of investing can you do that will pay you back in returns? How about servicing the company car that would improve gas mileage? Perhaps re-configuring the layout of an assembly line will produce more efficient movements in your workers.  Perhaps upgrading equipment in your home office will produce more efficiency.
3. Pay workers – This goes right along with investing. Happy people make productivity go through the roof. Right now, everyone could use a little extra in his or her pockets. Why not show your employees you care about them and their families by helping them make ends meet. This will produce loyalty like none other and people will be more willing to stay productive if they know you are behind them in their personal life.  Are bonuses in order?
4. Return to community – Donating to charity is always a worthy cause. Putting back in to the community is not only rewarding and great media publicity, but also counts towards your tax write offs for the next year. Using the funds to help build up the community also makes a better place to live and do business and usually, those you help are more than willing to help you out when it comes time.
5. Save – Putting money away for a rainy day is what usually saves most small businesses. With the rates that businesses go under even in a perfect economy, having a little savings in the bank is a great place to gain stability. Find a good bank that will give a decent rate and put your money in for the long haul, or until you are ready to invest it in your business.

There are plenty of things to do with your tax return, but there are only a few things that make good business sense. Before you start spending your tax return, talk to your CPA about what would make the most sense for your business, now and in the long run. You will know what you are supposed to do when it all feels right and makes the most sense financially.

Tax season can be gruesome if you are constantly stressed out while trying to get all of your financial information together for the IRS. It doesn’t have to be this way and can actually go quite smoothly.  Instead of waiting until midnight on April 15^th to finally file your taxes, here are a few tips to prepare in advance and reduce the stress during tax season.

1. Be prepared – You know April 15^th is coming. Every year it happens on the same date; 4/15. Keeping in mind that tax time is right around the corner will help to reduce some of that stress because you will be more prepared when it actually arrives.
2. Keep good records – Right along with being prepared, is keeping good records. Keeping your records organized and exact on a daily basis, helps keep you from stressing over the deductions you have been missing.
3. Start early – Starting at the end of January will always reduce the stress of tax season. Starting on April 10^th, however, will most likely do the opposite.
4. Finish early – Even though you started early, in your effort to reduce stress, finishing early is another big component. If you start early, but put completing your tax forms, it will make it even more stressful.
5. Stay on task – Studies have shown that sticking with a task will reduce stress and also allow you to finish it up faster than if you tried to multitask. Decide to finish what you start instead of being distracted by another task.
6. Take breaks – Taking a short break every hour will help your body to reduce stress by staying loose. Taking a break does not mean sitting there at the computer and surfing the web.  Stand up, get a cup of tea, look out into the distant horizon to relax your eyes, and breathe deeply.  In other words, relax.
7. Double check – Once you have the weight of the world off your shoulders because your taxes are finally finished, you should probably double check to make sure everything is filled in correctly and signed. If you don’t take a second glance, chances are you will stress over that one thing you “know” you forgot to do.
8. Exercise – Getting up and moving around is good to get the blood flowing, but actually taking the time to exercise will greatly reduce stress. By increasing the oxygen to your brain by exercising your body, your mind will be able to focus on the task at hand.
9. Get professional advice – Getting a professional opinion on your tax return will greatly reduce your stress because you will have peace of mind that, in the eyes of someone who prepares taxes for a living, you have done everything correctly and in accordance with the latest laws.
10. Get a massage or facial – This doesn’t have anything to do with taxes, but it will reduce stress if you get a nice massage or facial. This is a great reward for yourself on April 16^th, or sooner if you take the advise from above. Just imagine, while you are getting your massage or facial, how nice it is to not feel the stress.

While others are trying to beat the deadline, you’re being pampered. There is no better feeling than the absolute absence of tax time stress!

Tax time is extremely stressful for most small business owners.  This is due usually to a last-minute rush to try and find the necessary paperwork needed by your tax accountant or CPA, in order to finalize and file your small business tax return.

There is an easier way to avoid the stress of tax season.  Know what exactly your accountant needs in order to do his or her job properly and get those items together ahead of time.

There are a couple reasons to have your items together before visiting your tax preparer:

1. You save time, which is money, by not trying to piece together information with multiple trips back and forth to your tax preparer’s office.
2. Your tax preparer is allowed more time to find all the deductions possible because your detailed records are available immediately.
3. Your information is all together in one place which makes retrieval in case of an audit much easier and faster, saving you money, time, and a great deal of stress.

Now, what sort of information will you need to provide your tax preparer at tax time?  Here is a list of items you should have ready and available for your tax preparer on your first meeting during tax season. (Depending on your business, this list may not be all inclusive, but it’s a good start.)

1. All 1099 and 1096 forms including INT, DIV, B and MISC.
2. Any W-2 or W-3 information on you or your business
3. 1098 forms which lists mortgage interest and property tax
4. Schedule K-1 (income/loss from S Corps, Partnerships, Trusts etc.)
5. Bank statements and reconciliation reports from the end of the taxable year and the beginning of the current year.
6. A backup copy of your personal accounting software
7. Petty Cash reconciliation
8. Mileage on all vehicles
9. Payroll reports from software or third party payroll company
10. Information and statements from stocks, bonds or other investment transactions including dates of purchase and cost basis or date of sale and the selling price.
11. List of Inventory and Assets
12. Quarterly tax forms if used to report on a quarterly basis
13. Statements pertaining to any real estate transactions including refinancing or foreclosure
14. Balance sheet, profit and loss statement and trial balance for end of year
15. Withdrawal and Investment information on partners or shareholders from the company account.
16. Any documentation specific to your business not listed above.  This may include home based business expenses not mentioned above.

This list is, by no means comprehensive and many tax preparers have an actual list of documents they will need in order to prepare your taxes. The items listed above are merely for reference so that you can have a good majority of your documents together in one place.  This way you’ll be able to easily sort through your paperwork and bring exactly what you will need to your accountant’s office when the time comes.

There are many reasons to keep your documents together, but none more important than making sure your accountant has adequate time to find the most deductions possible for your small business.  Don’t let a sloppy record keeping system cheat you out of your hard earned money!

Tax time is right around the corner and it will be here way before you realize it. You might just realize that you only have a couple weeks left and haven’t even started to prepare your return. Here are the top 10 tips to helping you file your taxes from year to year.

1. Start gathering your records – Keeping your records in one place will help when tax time comes.  Now is as good a time to start pulling records together. These documents can include receipts, canceled checks or any other document that supports your claim of an income or deduction.
2. Be on the lookout – W-2s and 1099s usually show up around the end of January. The deadline for employers to have them postmarked is January 31^st. You’ll need these to file your tax return.
3. Try e-file – When you file electronically, the software will handle the math calculations for you. If you use direct deposit, you will get your refund in about half the time it takes when you file a paper return. Filing electronically is now the way the majority of returns are filed, especially if they’re prepared by professional tax preparers. In fact, last year, 2 out of 3 taxpayers used e-file.
4. Consider other filing options – There are many different options for filing your tax return. You can prepare it yourself or go to a professional tax preparer. The IRS actually offers free face-to-face help at some of their offices, usually with a volunteer accountant. Take the time to become familiar with your options and figure out what suits your needs as well as those of your business.
5. Consider Direct Deposit – If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check. You will also be able to track when your return should be deposited.
6. Visit the IRS website – The official IRS Web site is a great place to find everything you’ll need to file your tax return: forms, tips, answers to frequently asked questions, and updates on tax law changes. Not to mention, the IRS website is a free service that can be used to help you file yourself.
7. Check out Publication 17 – Publication 17 – “Your Federal Income Tax” is a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
8. Double Check Yourself – Don’t rush. Even the most well-trained CPA makes mistakes when he or she is rushed. Not only can mistakes cost you money in the long run, they can also delay your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors when filing by yourself. If you are not good with math, find a suitable software program that works well for you or find someone who will check your math for you.
9. Don’t panic! – If you run into a problem, there are always people willing to help. From your friends and family to the IRS, there is someone you can ask to get your questions answered.

If you find yourself dealing with financial stress, it can be an exceptionally difficult time. However, you mustn’t let the stress take over your life. Even if the bills are piling up and the savings is dwindling away, there are steps you can take to reduce your stress and your debts.

The most important thing to keep in mind when you’re faced with financial troubles is to make a plan and stick to it. If you need help with this plan, it would be in your best interest to seek out help from someone removed from the situation.

Here are a few tips that can help you on your way:

1. Don’t spend money to relieve your stress. It’s often tempting to reduce stress by going out for meals, entertainment, and other activities. This is clearly counterproductive. Instead, use some free stress relievers such as a warm bath, a good book, or a social event with friends at home.
2. Accept your situation. Being unwilling to accept that you’re dealing with a hard situation can increase your stress. In many financial scenarios, you’re unable to control the situation. However, once you surrender control and accept it, you’ll feel better knowing that you can only do what you can to improve your financial outlook. It may take time, and that’s okay!
3. Don’t be risky. If you have investments that may be on the risky side, it may be time to re-evaluate and move them to more reliable returns. This security alone may ease your financial stress.
4. Discuss your problems with family. If you have a spouse, make sure you keep the lines of communication open. Many marriages suffer during times of financial stress, but with honest communication and careful planning, you can keep your marriage and family happy.
5. Stay Organized. Make lists and keep a calendar. It’s important to schedule time for relaxation, too. You’ll need some time where you can enjoy yourself without worrying about anything – especially your financial troubles.

Have a Plan

Simply having a plan to improve your financial problems can reduce your stress level. Plans and goals will help you keep things in perspective and show you that you’re making progress towards a better life.

You don’t need to do this alone. There are many professionals available to help you create a successful financial plan, even in your current situation.

Here are some items you may want to review before forming your plan:

• If you find that you’re spending more than you’re making, look for ways to cut expenses to a manageable amount. Remember, this doesn’t have to be permanent.
• See if you can pick up a part-time job or implement other ways to add to your income.
• Look into refinancing options for your current loans.
• Start using your debit card instead of a credit card.

Maintaining Your Health

People often forget how important it is to maintain your health. When your body is dealing with any kind of stress, it can take a toll if you don’t take steps to relieve it.

Next time you feel exceptionally stressed out, become aware of the state of your body. You’ll likely notice that all of your muscles are tense. Take a few moments to relax your muscles and take a few deep breaths.

While you may not have control of your financial situation, you do have control over how you feel about it. Focus on taking action to do what you can to improve your situation and know that better days are ahead.

As you build your business, it can be tempting to let tidiness and organization go out the window.  The truth is being messy & disorganized can cost you money!

Good organization is the keystone to making and saving money and if you want to do either, you’ll find that you can easily make some progress by organizing your business and your life.

Schedule Your Bills

The first expenses you have to worry about each month are your bills like the office rent or mortgage and utilities.

• Use a calendar, planner, computer program, or online banking account to schedule when your bills need to be paid. Delays can cost you substantial late fees and finance charges.

• If you set up electronic banking, make sure you understand exactly how the system works. Some programs will not allow you to make a payment on weekends or holidays while others may need a few days to process the payment.

• Pay your taxes on time or early.  Penalties as well as late charges are added if you don’t file the proper extensions. Hire a bookkeeper or an accountant to help with your preparation, especially if you work independently. Remember, you may be required to pay quarterly estimated taxes as well as year-end taxes and can be fined if you don’t file those as well.

• If you work independently, you may also want to consider paying your income taxes quarterly too so you don’t have to worry about them at the end of the year.

Organize Your Paperwork

All of your paperwork should be organized so you know exactly where your receipts, financial statements, and bills are filed.  There’s nothing worse than going in search of a needle in a haystack when a question arises.

• Minimize paper in your work area. Everyday take a look at your desk and think about what pieces of paper you can immediately get rid of.  A wastebasket by your desk is essential, as is a shredder to prevent identity theft.

• Utilize file folders or a portable file container instead of having piles of papers on your desk or countertops. This will prevent you from losing important pieces of paperwork under a landslide of unimportant junk.

Consult with a Financial Advisor

Whether you have a substantial investment portfolio or just want to get started, consult with an expert who can help you reach your financial goals. By organizing your finances, you’ll not only save money, but make it too!

• If your current investments aren’t performing well, an advisor can help you move the money around to better performing funds that earn a higher yield or give you greater dividends.

• If you don’t have any investments, an expert can listen to your financial goals and recommend an investment plan for achieving those goals. Even starting off modestly will often bring you some annual dividends. Every little bit helps!

Consolidate Your Debts

Get in control of your money by consolidating large debts with one loan. Research which banks or credit cards will give you the lowest interest rates and consolidate your payments into one. This will save you money by paying fewer interest fees, but you must also limit your spending until the debts are paid off.

• Ask a mortgage broker about refinancing your home or taking out a home equity loan to consolidate debts.

Be in control of your money and your life by evaluating your accounts regularly and staying organized. A little bit of work each day and regularly monitoring your progress will help you reach your financial goals.

Your attitude about life is one of the most important factors for success. A bad attitude gets you nowhere, while a good one can provide you with enough motivation to succeed beyond your dreams.

You may think that you already have a success-mindset, and perhaps you do. However, you can always benefit from strengthening that attitude and therefore increasing your chances for the success you deserve.

Follow these strategies for improving your attitude for success:

1. Find your inspiration. Discover what inspires you the most and use it to jumpstart your motivation whenever you go. Feeling inspired enables you to maintain the drive necessary to find success. Do anything you can within your power to find inspiration.Make a list of your ultimate dreams, and then ask yourself if you’re on the right path. If you are, you’ll know that everything you’re doing will be rewarded.

• If you don’t feel like you’re on the right path, perhaps it’s time for a change. Maybe there’s a deeper reason why you’ve felt a lack of motivation. Reflect on what this reason might be, and then decide on how you can renew your drive. When you’re on the right journey, you’ll feel inspired!

2. Surround yourself with positive people. When you’re around positive and inspiring people, you’re more likely to adopt those traits into your own personality and go for your goals with enthusiasm. Negative people, on the other hand, tend to make you negative also.

• If you must be around people that continually bring you down, do your best to avoid taking what they say to heart. You know that they don’t speak the truth. Keep the peace as best as you can to get through these situations and then move on.

3. Take a leap. The best way to improve your attitude might be to just jump right into life. Don’t be afraid to take initiative and plunge forward towards your goals. People who take action find success. If you take action and start to see the results of your efforts, your attitude will only improve.

• The increased drive and motivation you get from your actions can be the difference between success and failure.

4. Strengthen your focus. Your focus can also play a role in your attitude. When you maintain driven toward success, it’s easier to have an optimistic attitude. If you have a lack of focus and don’t know where you’re going, it leads to being unmotivated and uncaring.

5. Allow for mistakes. You’re only human and you will make mistakes from time to time. Be careful to avoid judging yourself harshly when this happens, as it negatively affects your self-confidence. If you work on more of a “go with the flow” attitude, you’ll find that you’re able to pick yourself back up and continue moving forward when you do make a mistake.

The main things to keep in mind are that the combo of inspiration, positive thoughts, and proper motivation can lead you to a healthy and positive attitude. Follow these strategies daily and you’ll notice a boost in your spirits!

Finding ways to cut back on your spending can help you during a difficult economic period. Saving money is always good, but it’s a skill that becomes especially important during a recession.

“How is it even possible to save money during a downturn?” you might ask. It’s all about planning, cutting out the really frivolous costs, and changing the way you think about spending money. You can use these tips both at home with your family or in your business.

Here are some handy tips you can use to help you save money:

1. Pay important bills first. Decide what is most important to you and your family, or your business and your partners and agree to pay those bills first.
2. Save money on meals. Groceries and business meals are a huge, yet necessary, expense.

• Buy generic rather than name brands. They usually taste just as good but cost less.
• Order a tall cup of tea instead of a vente latte. In addition to being more wallet friendly, this could be more waist-friendly too!
• Buy non-perishable foods in bulk. Many items can be bought in bulk such as rice, canned foods, and frozen foods.
• Schedule business meetings in between meals and at coffee shops instead of restaurants. Brownbag your lunch and eat with your co-workers or employees instead and build up your relationship with them.
• Never shop on an empty stomach. Eat before grocery shopping; otherwise, you’ll wind up buying more junk and convenience foods because you’re hungry.
• Keep snacks in your office. If you absolutely have to run out in the afternoon if you get hungry between meals, you will have little choice but to spend the money. Keep snacks with you at work just in case.
• Make a list of what you need at the grocery store and stick to it. It really is that simple

1. Rent movies instead of going out. Have a movie night once a week. Sit down with some popcorn and watch a movie. This is a great way to spend quality family time, without much expense.
2. Only buy things that you have the money for right now. As much as you can, pay cash or debit instead of using a credit card.
3. Cook at home. If you go out to eat two or three times a week, cut back to once every two weeks or once a month. Instead, learn to cook at home. If you plan ahead and cook in quantities, you’ll save time and money by popping the extra portions into the freezer.
4. Unplug. If there are things in your house plugged into the wall and you aren’t using them, unplug them. Many items, like computers and phone chargers, draw electricity whether they’re on or not. Plug it in when you need it, then unplug it when you’re done.
5. Check your thermostat. Setting your thermostat just a few degrees higher or lower than normal can help save a chunk of money on your energy bill. If you take the weekend off, turn the thermostat off at the office.

These are just some of the many ways to save money and stretch your dollar a bit.

We all need to relax every now and then. Relaxation, stress relief and improved health go hand in hand, and we all want to be healthy and performing our best. However a massage or spa weekend or non-working vacation is not always something we can squeeze into our budgets, much less our busy schedules.

What if we want to find some simple ways to relax without breaking the bank? There are many of them out there and it’s easier than you think!

Here is a list of ideas for zero cost ways to relax:

1. Light Exercise. A great way to relax is getting some light exercise. This can mean going for a walk around the neighborhood or playing a low impact sport. Exercise has been known to help the body relax and engaging in non-intense exercise will help your mind to unwind as well.
2. Meditation. Taking up meditation is one of the most relaxing activities you can engage in for free. All you need to do is sit in silence and focus on your breath. When negative thoughts arise, acknowledge them, and then let them go. Try doing this for 5-20 minutes each day.
3. Take a Nap. Babies and toddlers aren’t the only ones that can benefit from a nap! You may even feel relaxed and rejuvenated after a simple 15-minute snooze. You don’t need to completely fall asleep to benefit from this activity.
4. Shoot the Breeze. Go to a friend’s house or talk to a friend on the phone. Chances are you have one of those friends that you can chat with as if no time has gone by since you last talked. Old friends usually provide great opportunities to talk about the good old days.
5. Listen to Music. Grab the MP3 player and chill out with some great tunes. Pick out a group of songs that you find especially relaxing or rejuvenating. Classical and other light songs usually work best for naps, while music you just got to dance to is great for replenishing your energy during a long day.
6. Read a Book. Go check out a new book from the local library and start reading. It may even be a fun activity to read one of your favorite books over again.
7. Take a Hot Bath. Take a hot bath or shower. If you’re taking a bath, add in bubble bath soap, play some music you enjoy, and remember to turn off your phone ringer. This is a simple way to have some peaceful time just for you.
8. Look at Old Photos. Bring out some old photos from your childhood or the photos from a fun trip you took. Remembering some of your treasured moments will make you smile and relax for sure.
9. Play Board Games. When was the last time you played your favorite board game? Dust off the old Monopoly or Scrabble, prepare some snacks, and play a few games with your family or partners. Incidentally this is also a great team building activity for you and your employees. It’ll be fun for all!
10. Daydream. Allow your mind to wander and dream. Escape to where you’d like to travel one day. Think about what your life will be like in the next 5, 10, or 15 years and write these thoughts down in a journal for you to read later.

Endless Possibilities

These are just 10 simple ideas when it comes to relaxing the zero cost way. Stay creative and remember that it’s okay (and healthy) to not be in motion every second of every. You can either hang around doing some self-reflection, or you can hang out with friends or family, whatever it is, do something fun!