One of the major problems we see in small businesses is lack of engagement by the owners. You can outsource responsibilities, but you can’t outsource concern. Having the knowledge and ability to stay involved and engaged is one of your greatest assets in fighting off employee theft, legal exposure, tax audit risk, and other business risks.
As a business owner it is easy to overlook what is happening right under your nose at your office. You run your business, but you hire others to handle a lot of details. Those who handle your bookkeeping and payroll have a great vantage point to help you run your business. They may be the biggest asset you have. Trusting them implicitly is great, but it can leave you a little out of the loop on some things. We want to give you some tools to get yourself back into the loop and provide some oversight without having to get too deep into their work.
We have devised this set of questions for you to ask those managing your finances to help you stay on top of things.
If you are a business owner and you would like more information about these questions, or what kinds of answers to expect, contact us at thinknextstep.com.
What's your next step?
One of the very first traits learned by every new hire in public accounting is the mantra of “Same As Last Year” (i.e. “SALY”). Why is it that our Tax & Accounting Professionals are taught to be so focused on historical figures? Yes, history serves a purpose. We can analyze trends, learn from mistakes, and improve performance based on historical facts. However, with today’s economic challenges, we need Tax & Accounting Professionals that are PROACTIVE not REACTIVE.
With tax season upon us, many business owners await the dreaded news and the fate of their current year cash flow. Many business owners end up robbing current year profits to pay for last year’s tax bill. There is a better way of life and success for your business. It is critical to find a Tax & Accounting Professional that is PROACTIVE and has the following traits:
One of the most common questions we get is about how to deduct the business use of your vehicle. While there can be many variables, one thing that is almost always certain is that you need to track your mileage! Tracking mileage is tedious, but necessary. In the past, people have used paper mileage logs or excel sheets to track their mileage. Those methods are still totally acceptable, not to mention basically free! But if you prefer to leverage technology to your advantage, we recommend you use an app called MileIQ. MileIQ is an automatic mileage tracker that takes the hassle out of keeping a mileage log.
The MileIQ app runs in the background on your iOS or Android phone and logs every drive automatically. You swipe each drive to classify it as business or personal, and MileIQ calculates the value of your deductible mileage. You can add details like parking, tolls, purpose and vehicle and have a complete, accurate mileage log practically effortlessly! Your log gets synced to the cloud, so you can get to it any time, even years down the road. You’ll be able to claim the full value of your mileage deduction with total peace of mind.
This year, MileIQ is offering our clients a 20% discount on annual unlimited-drive plans. Subscriptions are regularly priced at $5.99/mo. or $59.99/yr. (Here’s how to redeem promo codes.)
You can try MileIQ by downloading the free app for iOS or Android. To get an annual unlimited-drive plan at a 20% discount, sign in to your MileIQ web dashboard, click “Get Unlimited Drives” and use promo code JEME439A at checkout. (Note that the discount is not valid for in-app upgrades or monthly plans.)
Want more information? Take a look at this flyer.
And remember, the subscription is usually deductible too! And at 54 cents for every business mile in 2016, it'll pay for itself in just a few drives.
Next Step Blog
Our blog is intended as a tool to keep people informed about relevant tax and accounting issues. If you have a question or an idea for a post, let us know!