NEW SMALL BUSINESS TAX BREAKS!!

Posted March 26, 2010 by vbaccountant
Categories: New Tax Changes

Last week, President Obama signed the $17 billion Hiring Incentives to Restore Employment (HIRE) Act. The act is part of the economic stimulus effort to encourage businesses to hire more employees. We wanted to make you aware of some of the incredible benefits for which your clients may be eligible.

The following are some key points you should be aware of:

  • Social Security Taxes: Employers will not have to pay this tax — which amounts to 6.2% of wages up to $106,800 — for hiring someone after February 3, 2010 and before January 1, 2011. To qualify, the employer will have to certify that each employee they hired was employed for no more than 40 hours in the 60-day period ending on the date that employment begins. This must be verified with a signed affidavit (pending further detail from the IRS). However, there will still need to be withholding for the employee’s share of the Social Security tax (which is also 6.2%). The law change will have no impact on an employee’s benefits.
  • Business Tax Credit: For employees that qualify for the HIRE Act, there is an additional $1,000 income tax credit for new-hires that are retained for a minimum of 52 weeks. This credit applies if the wages paid in the last 26 weeks are at least 80% of what they were for the first 26 weeks.
  • Business Expensing: The increased threshold Section 179 expensing has been extended for another year. IRS Section 179 allows a taxpayer to elect to deduct the cost of certain types of property on their income taxes, as an expense (rather than requiring the property to be capitalized and depreciated). This property is generally limited to tangible, depreciable, personal property which is acquired for use in the active conduct of a trade or business.

The aforementioned provisions are effective immediately. The HIRE Act provides that businesses will prepare their first quarter 941’s as if the law was not in effect. Employers will claim any qualifying payroll tax relief earned in the first quarter as a credit on their second quarter 941. The $1,000 retained worker credit is earned only after the qualified worker has been employed for at least 52 weeks. Considering this, calendar year employers will claim the credit on their 2011 returns.

We would be happy to help you explore your eligibility for these new credits. Contact us today to find out more.

What is it that clients really want from their Accountant, but rarely ask for?

Posted March 16, 2010 by vbaccountant
Categories: Uncategorized

I’m not pulling any punches. (Let’s face it), clients don’t want a set of financial statements or a tax return done. They HAVE to have those prepared. There are, however, a number of services that they’d love to have, but they probably don’t even realize that I can help them.

Why is this? Well it seems to me that most clients know exactly what they REALLY want from their Accountant, but they don’t know if their existing advisor offers what they truly want, or if they do, by the impression they have, it seems that their Accountant is simply so busy right now that there’s no way that they could help them even if they did ask.

A long-winded sentence to open this letter with, I guess, but the point is a serious one.

Well, here it is folks…

Clients don’t buy what Accountants are trained to deliver. I don’t sell technical services to my family businesses, owner-managed clients, or individuals. I actually provide:

• Peace of mind
• Security, and
• Hope

That’s it.

The fact is, that in order to provide my clients with peace of mind, I need to be technically proficient in preparing their financial statements, organizing their tax affairs and so forth.

In order to help a client plan for their future financial security, again, I need to be technically competent (at least) and that requires all that ‘sweat equity’ I put into my education and career in the early days.

Technical competency was my ticket to get into the game – but it’s not the game itself!

And if I have an ounce of entrepreneurial spirit in my body, I should also be providing my clients with hope – by sitting down with them and planning their business and/or finances out for the next year or two, by preparing cash flow forecasts and projected financial statements and then offering advice and guidance on how they can improve their finances through ‘what-if?’ scenario discussions.

And that brings me full circle, back to my opening question.

What most clients want is:

• Peace of mind
• Security, and
• Hope

And translated into a more practical language that means I have to be:

• Approachable
• Easy to talk to
• A good listener
• Accessible
• Proactive
• Compassionate
• Creative, and
• Have the long term success of my clients at heart

Many of my small business owners and individuals that I have as clients have no-one else to talk to about their financial condition. It can be a lonely place for them to be.

Often they’re just dying to shout ‘Help me – PLEASE!’ but they don’t know what I could do to help, or even if I’m interested. Clients don’t jump out of bed excited in the morning and proclaim ‘Today is going to be a great day – my Accountant is coming in!’

Indeed, a client’s view of an Accountant might be something more like…

• Come into my place of work, or to my home, where we’ve barely got room for ourselves, never mind you l
• Interrupt all my processes that I am comfortable with
• Disturb me or my employees in their moments of deepest thought
• Ask us all the same stupid questions
• Compile all of my short comings into an embarrassing letter
• And then, charge me for the privilege!

Little wonder that most clients endure their Accountant rather than enjoy them!

I need to show my clients that I can do so much more for them than just the annual bean-counting exercise.

By talking to my clients more often, getting closer to them and letting them know how I can help them build a better business and/or personal financial position, I develop a more beneficial relationship as their trusted financial advisor.

Vicki D. Bealman

“Create a Plan You Can Enjoy – Not Just Endure”

How To Stop Wasting Money In Your Business

Posted February 12, 2010 by vbaccountant
Categories: Uncategorized

How to stop wasting money on bookkeeping in your business: (STOP BOOKKEEPING)

If You’re Tired of Bookkeeping Problems Year After Year;

Then download this free presentation. OUTSOURCED BOOKKEEPING PROCESS.ppt

You’ll see how easy it is to stop bookkeeping, at a 30% – 50% lower cost than doing it in your office, and even better, without employee drama.

We will not call you. We’re accountants and we’re not that good at sales anyway. So we’ll give you this free presentation, and if you like what you see, please call us.

If you run a small business –the best use of your time and resources is to focus on grade “A” customers that bring in money. If you waste your time on anything else you have about an 80% chance of failure. Those are tough words but after 25 years in business I have seen a lot of people fail or just struggle year after year for no good reason and that is “plum nuts.”

Doing low value tasks like reading the mail, filling orders, filing, paying bills or dealing with payroll problems makes no economic sense and is a major reason why so many small businesses struggle. We get so bogged down in the small busy work or urgent emergencies we get pulled away from what’s important; Generating Revenue.

The most amazing fact of all is that Outsourcing your bookkeeping is cheaper than doing the work in your office. I know this is hard to believe when you can get a half way competent bookkeeper for $15 an hour.

Here is why… We use a document management system that allows our staff to compress 8 hours of work into 3 or 4 hours. Then we use one set of staff people for payroll, others for payables and a third group for receivables. All their work is then reviewed by a senior accountant. This division of labor allows us to place highly skilled people into each transaction in your business. You get big firm expertise in your small business. By the way, the off shoot benefit of this process is that you will become a paperless office overnight.

Even better –You get actionable information All our clients get “real time‟ feedback on what’s working and what they should keep away from. Soon you’ll know your cost per lead, life time value of a customer, your most profitable sales and dozens of other measurements that give you the knowledge you need to be in the top 1% of all income earners.

The Best for Last No more employee drama. The bookkeeper does not bring in revenue so any time you spend managing that position is not a well used hour. At last you will be able to focus on what counts.

The next step Simply download the free presentation above and if outsourcing makes sense for you, call us for more information.

“It Does Matter Who Prepares Your Tax Return!”

Posted February 2, 2010 by vbaccountant
Categories: Uncategorized

“It Does Matter Who Prepares Your Tax Return!”

There are software packages and “temporary seasonal preparers” that use a series of scripted interviews and interactive computer menus. Don’t you deserve an ACCOUNTANT with an understanding of the tax rules that apply to YOU? A computerized script cannot “detect” or “understand” issues in your personal tax situation.

If you have ever received a “Rapid Refund”, otherwise known as a “Refund Anticipation Loan”, you could be charged back on the loan if there were any mistakes on the tax return. This has happened numerous times already to my new clients that had their rapid refunds done at at Tax Preparation Chain up to 6 years ago!!! This is because your rapid refund was actuallay a “loan from a bank”. If your original return had any errors that caused the refund to be incorrect, you could owe the bank the difference.

“It Does Matter Who Prepares Your Tax Return!” Vicki D. Bealman

Would You Like to Get Rid of Your Bookkeeping Department?

Posted January 28, 2010 by vbaccountant
Categories: Uncategorized

Would you like to get rid of your bookkeeping department to cut cost or drama, here is how it can be done with little disruption.

Using new technology called Paperless Overnight, we can link your bookkeeping computer to our office and we’ll do your bookkeeping from down the road instead of down the hall. In a few days it will be hard to tell we are not in the office 24 hours a day. Your bookkeeping gets done fast, accurate, and for nearly 50% less than it costs you now, but best of all no drama.

Here is how we do it for you.

  1. We convert your office into a Paperless operation – within 48 hours.
  2. We scan all of your documents to Paperless and capture your computer transactions.
  3. We can do 40 hours of bookkeeping in less than 20 hours. It takes us far less time to do your bookkeeping because we have taken your office paperless and all of our staff use dual 24 inch monitors. You save big!
  4. Over the next 90 days we install “best practices” in up to 100 categories in your office. This cuts your job cost by another 25%. Everything you wish you had time to get done – we do, right now.

Best of All!! We do not assign one bookkeeper to you. We put 5 people on your team working on a management by exception process. What that means is entry level interns read all of your documents overnight by hand and name them. Then data entry clerks who are good at simple tasks like “enter a bill”, and “pay a bill”, do 80% of the low end bookkeeping. Whenever a task takes over 2 minutes, the data entry clerk bumps the work up to a CPA. The CPA usually only works one or two hours each week on your account, so you are only paying for the actual time you need a really smart staff person. Now, those are my hard payroll costs, the next paragraph gives you an idea of how the fees are calculated.

How we calculate the fee. We are twice as fast as your in house bookkeeper (because of paperless overnight) and our burden rate for labor is ½ what you pay.

So our bid process is simple.  In order to drive down your cost we use the paperless overnight system, charging about ½ of what it is or would be costing you in house now.

If you are tired of bookkeeping problems and high costs year after year after year, we can help you right now. 3 easy options to learn more;

  1. Call our office at (757)581-6668 and ask for a quote.
  2. Email vbaccountant@BealmanAndAssociates.com and ask for a quote
  3. Ask for a free Power Point presentation to be sent to you, where you can see for yourself how the system works and the extensive benefits available to your company.

 

Thank you for reading this blog. Let’s make 2010 the year you save money and become a “Cash Cow”

Respectfully,

Vicki D. Bealman

“Your Virtual Accountant”

”Have you ever looked up at 4.30PM and said “I have been busy all day and did not get to one of the things I wanted to do today”?

Posted January 25, 2010 by vbaccountant
Categories: Uncategorized

Time Is Money!

"TIME IS MONEY!"

 

More than 80% of all businesses fail in the first 5 years. That failure rate drops by half if the owner hires just ONE employee. The reason is simple. Two people working together get far more done.
The problem business owners suffer is “Not getting enough of the right things done”.  Every one of our existing clients had this problem. Business owners are so busy working on the “urgent” that they never have time to do the “important things”.
BEALMAN & ASSOCIATES has the solution to this problem and it can drive a business’s revenue like nothing you have ever anticipated. It could this year the biggest and best ever.
 
We can show businesses how to solve the 5 problems that keep them from getting rich. We can provide the training and systems to business owners to put them into a totally different position in their operations.
BEALMAN & ASSOCIATES solutions include systems and services to solve these 5 big mistakes.
 
The 5 big mistakes are…
1. Not getting the right things done (too much busy work, not enough revenue work)
2. Making assumptions about your business that are wrong (guessing and/or assuming instead of using accurate, timely, accounting reports.)
3. Failing to build systems and processes in the business so you can delegate (What our new Paperless System does for you.)
4. Over optimistic cash flow projections (one again a problem that is solved by good, accurate, timely, accounting numbers.)
5. Not hiring a core group of high talent, high cost people to run production, marketing and finance
 
These 5 errors are keeping business owners from being financially successful. Outsourced accounting, wrapped around the delegation tools and knowledge base that Bealman & Associates has built in the Paperless Work Flow system, will dramatically change the fortunes of business owners.

12 Practical Business Lessons From Social Psychology

Posted January 15, 2010 by vbaccountant
Categories: Business Profitability

 

Originally Posted By Sarah On January 14, 2010 @ 11:52 am In Business-General, Creativity, Entrepreneurial Strategy

It’s been said many times that business is all about people. That being the case, perhaps we should stop reading management books for advice and start looking at social psychology. Very simply, social psychologists study how people interact with others – their families, friends, and yes, business partners. Smart marketers and executives have been using the findings of this growing field for decades to close sales, hold effective meetings and get their way in negotiations. But rather than putting you through an academic psychology lesson, we condensed the most useful concepts into one article.

The Foot in the Door Phenomenon

Foot in Door
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The Concept: If you’re wondering how to convince superiors, employees or customers to do what you ask, try using the foot in the door phenomenon. This refers to the tendency of people to do something huge if they have already agreed to something much smaller. Your friend should be much more open to helping you decorate your entire house for a dinner party if, for example, he already helped you pick out decorations.

How You Can Use It: This handy principle has countless applications in the business world. Hand lotion and beauty supply kiosks at the mall use it all the time. If you can get a person to talk to you for a couple of minutes and rub some lotion on their hands, you’ve got your foot in the door, and they are much more likely to buy from you than if you had just screamed a sales pitch at them.

The Door in the Face Phenomenon

Door in Face
Image Source [3]

The Concept: Another classic persuasion tactic is known as the “Door in the Face Phenomenon.” Using this approach, you make your actual request look reasonable by first making an outrageous request that the person will unquestionably turn down. When they turn you down, you then ask for what you really want, which now looks trivial in light of what you asked for a moment earlier.

How You Can Use It: Let’s say you want your company to approve funding for a team of five marketers to research a new advertising campaign. Rather than simply asking for this funding and risking being shot down, use the door in the face principle. Ask your company for twice the amount of funding for a team twice as big as what you need. This will almost certainly be disapproved, but don’t fret; you didn’t need that amount in the first place. Act like you’re really going to work hard on cutting the funding down to the bone and reworking your proposal. In a few days, come back and propose the funding request you wanted all along. It will look as though you found a way to accomplish the same tasks for half the price with half the personnel. Social psychology research states that you are much more likely to get what you want by doing this.

The Serial Position Effect

Serial Position
Image Source [4]

The Concept: A truly sharp marketer should understand how our brains process information. The “Serial Position Effect” (developed by Hermann Ebbinghaus) assists by explaining how we remember items we see or hear in lists. Ebbunghaus discovered that things shown at the beginning of a list and at the end of a list are remembered best. This was later titled the “Primacy Effect,” and the “Recency Effect.”

How You Can Use It: This powerful concept can affect what the millions of people seeing your advertisements, listening to your radio promotion, or reading your sales letter, remember about your product. If you have five benefits that your product provides over the competition, think long and hard about which ones you want to stick deep into your audience’s memory. Place those items at the beginning and end of your pitch. This way, prospects will remember these benefits when they see your product on a shelf or think about the commercial they just saw.

Attitudes Follow Behavior: Resolving Cognitive Dissonance

Cognitive Dissonance
Image Source [5]

The Concept: Cognitive dissonance is a fancy term for when people have opinions, behave contrary to them, and change their opinion to fit how they acted. For example, if you normally despise handguns, but join your buddy at the shooting range one day, you might leave thinking about how “guns aren’t really that bad if you use them safely.” Simply by holding and shooting one yourself, your brain begins thinking positive thoughts about it. Similarly, a “boring” task might later be remembered as “not being all that bad” or even being “fun” because, after all, you did it.

How You Can Use It: What this means to you is that if you can get your customer to perform a small task, such as a little game or survey online, the customer may begin making some positive assumptions about what you sell. This especially works for businesses operating in controversial markets, such as gambling, tobacco or other vice-related products. If you can find a harmless and fun way for potential customers to get involved with your products and services they will be more likely to become loyal buyers down the line.

Two Routes to Persuasion

Routes to Persuasion
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The Concept: Not everyone processes information (including product demos and advertisements) the same way. Generally speaking, there are two types of audiences, depending on your product/service. Your audience is either attentively thinking about your message, or they are distracted. These two audiences take two different routes to understanding your message. The involved group takes what is known as the “Central Route,” meaning that they focus on what you are saying closely, develop counterarguments and respond based on what they eventually decide your product is all about. If your ad or pitch was strong and convincing, these people will probably buy. If it was weak or not convincing enough, there’s little hope of them buying.

How You Can Use It: The distracted audience takes a very different route to understanding your pitch known as the “Peripheral Route.” These people focus on irrelevant parts of the pitch that randomly interest them. The speaker’s good looks, for example might interest them more than the information in the pitch. Simple language is also important for this kind of audience. For example, if you’re selling a market research service, classic adages such as “look before you leap” will probably work better than “perform proper market research before investing.”

Perceived Expertise

Percieved Expertise
Image Source [7]

The Concept: Let’s face it – most of us give more weight to what “experts” say than average Joes off the street. Most people would sooner listen to a warning about the health hazards of eating fast food, for instance, if it came from a renowned nutritionist than from a self-righteous teenager.

How You Can Use It: What makes someone appear to be an expert? One tactic that has been used by marketers (and politicians) is to begin your pitch with something the audience already agrees with. This makes the speaker seem intelligent and makes the audience eager to believe more of what he or she has to say.

Of course, being introduced as an expert never hurt either. A comment about an approaching asteroid from “Dr. Robert Kimmel, Chair of Astrophysics at Harvard University” will surely be taken more seriously than, “Robbie Kimmel, local guitarist and college student.”

Finally, social scientists find that speaking confidently greatly improves believability. A study performed by Bonnie Erikson in 1978 proved this by having college students rate the credibility of two supposed “witnesses” to an accident. One spoke very clearly and confidently and the other one hesitated and stumbled over his words a bit. One by one, each student said the confident speaker was much more credible. Perhaps it’s time to buy your TV or radio guy a course in effective speaking!

Perceived Trustworthiness

Percieved Trustworthiness
Image Source [8]

The Concept: Trustworthiness of the speaker is another factor critical to any kind of visual marketing. No trust, no sale. Fortunately, how trustworthy you look can be controlled almost entirely by you.

How You Can Use It: Our outward behaviors have a lot to do with whether trust us or not. One behavior that seems to carry a lot of weight is eye contact. Researchers have found that if video-taped witnesses in court looked their questioner straight in the eye rather than down or around, they were seen as more trustworthy.

You can also appear more trustworthy by seeming like you’re not trying to influence an audience. “Hidden camera” TV commercials utilize this tactic all the time. Social psychology experiments have found that people who don’t think they’re being watched are comfortable being completely honest.

People also find others trustworthy when they argue against their own interest. Thus, a message about risks of cigarette smoking seems much more sincere coming from the tobacco companies than it would if were given by an anti-smoking politician up for re-election. People might link the politician’s anti-smoking speeches to his political agenda, whereas they cannot do this with the tobacco companies and are much more likely to absorb the message as true.

The Mere-Exposure Effect

Mere Exposure
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The Concept: Sometimes repetition alone can make a message more believable. Social research has found that people tend to eventually believe things they’ve been told many times, simply because they’ve repeatedly heard it. Studies show that people rate false statements such as “Mercury has a higher boiling point than copper” as true if they were made to read them a week before.

How You Can Use It: This concept is why companies run the same advertisement three times during a one-hour television show. The first time the audience sees the ad they might just ignore it. However, a week later they may have seen the ad 20 times, and by that point they have begun to accept its message and view favorably the product it advertises.

Distraction Disarms Counter-arguing

Distraction
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The Concept: Audio and visual messages are much more effective when the audience can be somewhat distracted by background clutter just long enough to inhibit counter-arguing. Mild distraction often preoccupies the brain just long enough to stop it from inventing a reason to say “no.”

How You Can Use It: Many radio commercials utilize this tactic. The words promote the product being sold while background music or intermittent comedy distracts us from thinking too deeply about the words. Be careful not to distract so much that ad is not processed, however. Extremely violent or incredibly sexual advertisements are often ineffective because the audience is simply too distracted by what they’re viewing to pay attention to the message. They key is to strike a balance such that your message is understood, but not deeply analyzed or argued by the audience.

The Self- Reference Effect

Self-Reference
Image Source [11]

The Concept: Remember – a marketer’s job making sure the audience understands and remembers the sales pitch. One handy way to achieve this is known as the “Self-Reference Effect.” The Self Reference Effect refers to the tendency of people to effectively recall information about themselves. Most people are primary concerned with themselves. Thus, memories pertaining to what we think about the most, (ourselves), are held longer and recalled easier. Studies have shown that, when asked to compare ourselves to a short-story character, we remember that character better than if we compared them to someone else.

How You Can Use It: When planning a new marketing campaign or presentation to the board, it is important to keep this principle in mind, as it can greatly influence what your audience walks away remembering. Try focusing on the basic lifestyle and personality traits of your audience. Once you have these squared away, design your new message to match these traits. This makes your message personally meaningful to them and boosts their chance of remembering what you said.

Priming

Priming
Image Source [12]

The Concept: Priming is when various stimuli (sights, tastes, smells) automatically trigger thoughts of similar stimuli. The smell of crisp fall air, for example, might trigger thoughts about the holiday. As a result, simply smelling the fall air might make you crave pumpkin pie or apple cider, even though no food is in front of you.

How You Can Use It: Priming is a classic sales tactic that has been used for decades, and you can put it to use for your business immediately. The key is to find some kind of neutral stimulus that is clearly related to your product. A perfect example of this can be found at any movie theater. As soon as you walk through the door your nostrils are overcome with the smell of buttery popcorn. Without even seeing the popcorn or being asked to buy it, you find yourself making your way to the concession stand because you suddenly feel like the movie wouldn’t be the same without the snacks. This is classic priming, and all five senses are susceptible to priming by intelligent marketers and businesspeople.

Prevent Employee Social Loafing

Social Loafing
Image Source [13]

The Concept: Have you ever noticed, perhaps in college or around the office, that when groups are assembled to complete a task, it always ends up that a couple of members do most of the work while the majority of members do almost none of the work? This is a social psychological phenomenon known as “Social Loafing,” and it happens everywhere and in absolutely every profession. Social loafing is defined as the tendency for people to put less effort into a task when they are in a group than when they are alone.

How You Can Use It: Social loafing can seriously drain a team’s performance. The good news is that the causes of social loafing are known and consistent. Social loafing happens when no one is personally accountable. When the group is judged as a whole no matter what its individual members do, loafing is almost sure to occur. The sure-fire way to make sure that all of your employees are contributing equally to the task at hand is to assign them to groups, but assure them that they will be personally monitored and evaluated on their contributions to the group. The more someone thinks they will be judged personally, the less social loafing you have. This allows you to make the most of the talent you have on staff and almost always produces stronger results than the vague “group evaluation” does.


Article printed from Business Pundit: http://www.businesspundit.com

Copyright © 2009 Business Pundit. All rights reserved.

ARE YOU BOWLING “BLINDFOLDED”

Posted January 12, 2010 by vbaccountant
Categories: Business Profitability, Uncategorized

 

Imagine what it would be like to go bowling if they put a curtain at the end of the alley in front of the pins and  turned off the  projector for the scoreboard.  How successful would your bowling game be? 
You would hear the pins clattering, and someone would tell you that you have another turn — at least until the game is over.  And you might have a wonderful time exercising and socializing with your friends.  But what do you think your final score would be?  You wouldn’t know how many pins went down.  You wouldn’t know whether your ball needed to go more to the right or to the left.  And at any given point, unless you’ve been keeping track in your head, you probably wouldn’t know how much more time was left in the game. Nobody would want to go bowling in that situation. Yet this is, effectively, what happens when you run your business without good accounting information!

Out of the 80% of new businesses that fail, over 60% are profitable when they go down!

WHY “PROFITABLE” BUSINESSES FAIL 

How can that be?  It sounds counter-intuitive that a profitable business would fail>>>>>>>>

The most common reason that a rapidly growing, “profitable” businesses fails to survive — it just runs out of cash.  They have to pay their landlord, employees, and suppliers BEFORE their customers pay them — and they don’t have enough “Working Capital” in their company to bridge that gap! They don’t fail simply because they run out of money.  According to research, that cash shortfall was a symptom of the real problem.

The real problem is that they don’t have the management information they need to successfully manage a dynamic business.  In other words, they fail to maintain bookkeeping and accounting systems to provide them with critical management information — such as how much they have in the bank, which customers owe them and when it is due, which suppliers they owe and when it is due, etc. — the type of information required on a day-to-day basis to successfully manage a business in a changing business environment!