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R.W. Ramsay & Associates, Ltd. Blog

January 10, 2012

Work = Fun?

We’ve all heard the old saying “It’s not fun, that’s why they call it work”.  Considering the significant change in the workforce expected over the next decade - with many of the baby-boomers retiring and the Millennial generation (or Generation Y) becoming more present in business, that just doesn’t seem to fit anymore. The Millennials are far more concerned with work-life balance, advancing quickly, and achieving a feeling of satisfaction with their work than with a lofty paycheck and life long job security.

The Bloomberg Businessweek article, linked below, gives a great perspective on this shift in thinking, and leaves you with some great points to think about.

http://www.businessweek.com/management/thats-why-they-call-it-work-12302011.html

To that end, we have fun to do, so make it a great day.

Filed under: Business Advisory — Tags: , , , , , — Rich @ 8:33 am

December 5, 2011

The Enemies of Productivity

We’ve all had days where we work very hard all day, but haven’t a clue at the end of the day what, exactly, it is we spent all that effort accomplishing.  The below article from BusinessWeek delves into 4 reasons for this phenomenon, and ways to combat each of them.

http://www.businessweek.com/management/productivitys-four-sworn-enemies-12022011.html

Filed under: Business Advisory — Rich @ 8:38 pm

November 9, 2011

Keeping a Mileage Log - Really?

For many business owners, the last thing they want to do is log each and every mile they drive for business. They believe logs are clumsy, time intensive, and easy to forget. The IRS, though, takes a very different stance.

In case after case fought in US Tax Court, the taxpayer has lost their mileage deductions because they can’t produce evidence of the business use of the vehicle. The IRS has also come out strong with this in audits as well, expecting to see a mileage log when examining a business.

There are several different ways to approach a mileage log, that will help if you’re ever asked the question.

  • Keep a log of all the business miles you drive, including the business purpose for the trip
  • Keep a log like the above, but just for 3-4 months out of the year, if your mileage tends to be pretty similar from month to month. Then, use these few months to determine the entire year.
  • Look into Apps for Blackberry, iPhone, and Android smartphones that use the phone’s internal GPS to track your mileage, and allow reports to be edited and printed online.

No matter what method you choose, always record the total mileage on the car at the beginning and end of the year.

Filed under: Business Advisory, Tax Related — Tags: , , , , , , , — Rich @ 1:56 pm

June 9, 2011

Using Corporate Funds Correctly

Businesses that chose to organize as a corporation do so for many reasons. Chief among these is to protect the owners and their assets from liability arising from the actions of the business or its employees. This is accomplished because a corporation is an “artificial person” in the eyes of the law – a legally separate entity from its owners.

 

Some owners, however, have trouble keeping personal expenses out of the corporate checking account. These personal expenses are non-deductible, and in many cases are classified as loans from the corporation to the owners, or as repayments of prior loans made to the corporation by the owners. A recent court case highlights the danger of this practice.

 

A couple took nearly $740,000 out of corporations they owned, and classified them as discussed above. The IRS determined, and the US Tax Court agreed, that they were, in fact, dividends to the owners, and were fully taxable to the owners on their individual tax returns.

 

How do you help prevent this type of problem from occurring in your business? Below is a list of the factors the tax court considered in its decision – use these as a guide.

 

  • Document the intention to make a loan, and the intention to pay it back
  • Treat the loan like a loan- record the loan advances, calculate interest at a reasonable rate, have a repayment schedule.
  • Create a promissory note for all loans
  • Note that the loan advances and repayments are just that
  • Be sure the amount of money borrowed and loaned is not excessive given the financial position of the owners and the business.
Filed under: Business Advisory, Tax Related — Tags: , , , , — Rich @ 9:12 am

April 28, 2011

Preventing Payroll Fraud

Payroll can create a golden opportunity for less than honest employees or advisors to steal funds from a business. The key to preventing it is to put in place the proper checks and balances, or internal controls, to be sure you know how much your paying and to whom. These are important in all sizes of businesses, but small businesses seem to be the hardest and most often victimized.

 

There are two leading types of payroll theft. In the first, an employee pays themselves more than their authorized salary, or pays relatives or friends who are not employed by the business. In the second, an individual trusted with making payroll tax payments takes them money for themselves, rather than paying it over to the proper taxing authority.

 

There are some simple steps that can prevent this from taking place.

 

  • Require that all paychecks be approved by another member of management prior to being authorized, and also have that manager check the paycheck against the current pay rates for the employees.
  • Reconcile your bank account monthly, and be sure the amounts authorized for payroll match what was disbursed from the account.
  • Check to be sure all tax payments were received by the IRS or state revenue department on a monthly basis, and in the correct amount.
  • Keep a 0 balance payroll account. Put in the exact amount of approved funds to the account the day before payday, and check to be sure it is 0 after paychecks are cashed and taxes are paid.
Filed under: Business Advisory, General — Rich @ 3:52 pm

February 1, 2011

Sales Tax Audits Increase Dramatically

Most of you look to us for advice and planning on your income taxes. If you are a small business owner that operates or does business in Minnesota, there is a trend of which we feel you need to be aware; an increased number of sales tax audits.

 

It’s likely we just lost the interest of many of you. You might be thinking “I don’t sell products, so I don’t have to worry about sales tax” or “I charge all my customers sales tax and pay it when I’m supposed to, so I’m covered.” What we’re finding as we help clients navigate the new, more intense sales tax audits, is that this might not be the case.

 

The sales tax in Minnesota is extremely complex, in some cases more so than the income taxes we routinely handle for you.  We still want you to be aware of the increased number and scope of audits.

 

Below is a link to a recent Twin Cities Business article entitled “The $100,000 Shakedown”. It is a great summary of the sales tax audit process endured by one business, and how she came to resolve the audit. We encourage you to read it, and consider how you would defend your own business in such a situation.

 

If you have any questions, we’d be glad to answer them for you. With the proper awareness, planning, and representation, the ever growing possibility of a sales tax audit will likely seem less daunting.

 

http://www.tcbmag.com/ideasopinions/context/133694p2.aspx

Filed under: Business Advisory, Tax Related — Rich @ 1:30 am

December 22, 2009

Focus on others

The best way to maximize your influence and at the same time improve your own situation is to forget about yourself and focus on others. In uncertain times, people tend to withdraw but will always appreciate attention shown to them.

When you focus on others, you will help them to transform their negatives into positives and they in turn will be grateful and helpful to you. This contribution will assist them and will shine back on you as well.

To illustrate this theory, think about how the holiday season tends to bring out the best in people and think about how good you feel when you give a little extra.

Filed under: Business Advisory — Rich @ 8:08 pm

November 26, 2009

HOW TO STAY YOUNG

1. Throw out nonessential numbers. This includes age, weight and height. Let the doctors worry about them, that’s why you pay them.
2.
Keep only cheerful friends. Grouches pull you down.
3.
Keep learning. Learn more about the computer, crafts, gardening, whatever. ‘An idle mind is the devil’s workshop.’
4.
Enjoy the simple things. Worry about nothing. Pray about everything.
5.
Laugh often, long and loud. Laugh until you gasp for breath.
6.
The tears happen. Endure, grieve, and move on. The only person, who is with us our entire life, is ourselves.
7. Surround yourself with what you love, whether it’s family, pets, keepsakes, music, plants, hobbies, whatever. Your home is your refuge.
8.
Cherish your health: If it is good, preserve it. If it is unstable, improve it. If it is beyond what you can improve, get help.
9.
Don’t take guilt trips. Take a trip to the mall, even to the next county; to a foreign country but NOT to where the guilt is.
10.
Tell the people you love that you love them, at every opportunity. Be ALIVE while you are alive.
AND ALWAYS REMEMBER :
Life is not measured by the number of breaths we take, But by the moments that take our breath away.

Filed under: Business Advisory — Rich @ 10:07 pm

July 28, 2009

Balancing Customer Service with Personal Needs

Making sure you offer customers better value than ever in a down turning cycle often means increasing workloads and tight schedules – frequently combined with some reduction of team numbers. It can seem that there are not enough hours in the day to get the work done, let alone striking a healthy work-life balance.

The good news is that it is possible, but it takes commitment to your own health and wellbeing. After all, if you become inefficient through weariness and lack of enthusiasm then the very goals you are seeking for your business will drift out of reach.

Set up email filters

Decrease the amount of time and stress spent slugging through masses of mail. Use your email program to filter spam of course, but even newsletters and joke mails from friends can be auto filed to folders for perusing later.

Turn off email and the phone for set hours

Most of us feel nervous about taking this on - there is a perception that we must be permanently and constantly available. But you’ll be surprised at how effective you can be if you schedule in a designated hour or two each day where you deal only with urgent work. Your emails and calls will still be there to pick up later.

Set a time to eat

Skipping meals and eating on the run leaves you tired and physically predisposes you to unwanted weight gain. Neither is very helpful to conducting your business efficiently. What‘s more, it robs you of precious time for your brain to mull and think, so you lose the chance to tap into your creative energies. Abandon the computer, get up in time to have breakfast at home – and try to eat at least one meal a day with family or friends.

Schedule breaks in your schedule and take them!

Accept you need breaks, different sorts of breaks from short to medium to long ones. Short breaks of 10 - 15 minutes allow for a cup of coffee, reading the paper or taking a short refreshing walk. Do something that relaxes you in a medium length break - workout at the gym, visit a friend, have lunch in the park, read a book. As for longer breaks – try to schedule a day away from the business at intervals, for no reason other than to take a break.

Call a friend

Keep your problems in perspective by chatting with a friend. If you can’t meet, then give them a call.

Outsource or delegate

Look at outsourcing necessary but non-core tasks e.g. bookkeeping and recruitment. Reduce your workload by delegating tasks to team members – you don’t have to be a jack of all trades, and they might appreciate the chance to learn new skills or vary their daily work.

Practice saying ‘No’

If you can’t do the job without unnecessary stress, learn to say no, or put a reasonable time frame on the delivery of the work.

Our time is the only thing we truly own in life - Gift yourself more time

Work out how long the task will take and then add some again. By allowing yourself more time you’ll reduce stress, avoid overloading yourself. Better still, you might end up delighting your customers by delivering ahead of schedule, and you will avoid disappointing them by falling behind on your promises.

Filed under: Business Advisory — Tags: — admin @ 2:07 pm