Jake Snelson - Vyde

The Do’s & Don’ts of Employee Development – 3 Tips for Improving Your Workforce

When it comes to hiring employees, you want to be able to pick from the cream of the crop. However, in today’s world, the movement of the workforce is rapid. 1 in 3 employees plan to look for a new job within the next year, and 59% of job seekers are willing to compromise for work-life balance. With these numbers and many more in the mix, it’s hard to know how to handle hiring, not to mention employee development.

But how do you know what prospective employees, or even those you currently employ, are interested in when it comes to overall job satisfaction and employee perks? Glass Door and Harris Interactive reported the following in a recent survey:

Despite the fact that the past has shown that health benefits, 401(k)s, and career planning programs were at the top of the list, today’s employees are much more interested in growth opportunities (52%) than they are flexible work schedules and work from home options. That means as managers, CEO’s and small business owners, we need to look for frequent opportunities to interact, but also encourage some stretching when it comes to work skills.

We’ve pulled a few of our best employee development do’s and don’ts together in hopes that they’ll be not only easy to implement but help retain your current employees and help you recruit those cream of the crop potential employees you’re looking for.

DO Look for Employee Strengths and Hidden Talents

You might be surprised that “Jane” in accounting has a real knack for the creative, but don’t let it slip by unnoticed. Make sure to recognize employees for their skills and abilities (even those outside their job descriptions) verbally and make notes in a personnel document so you have them to reference later. Referencing your own notes or those in the personnel files will help in putting together inter-departmental teams and might come in handy if you’re looking to hire from within for a new position.

DON’T Ask a Fish to Climb a Tree

The words entrepreneur, solopreneurs, or self-employed are common among today’s workforce. Because those titles often require an individual to wear many hats, it can be expected that those hats have provided them with quite a bit of knowledge in a variety of areas – accounting, marketing, business management, etc. However, it’s important that you don’t require those skills as part of their job description when you hire them. Just like you wouldn’t ask a fish to climb a tree, you can’t expect someone you hire to deal with finances to be great at customer service. Note strengths and talents, praise for contributions they make in any of these areas, but never require them to contribute in these areas on a regular basis unless you’re willing to renegotiate wages, titles and job description.

DO Allow for Failure

As an employer you can expect that many of today’s workers come with a variety of skills – chances are they, and even you, have Googled a topic and learned quite a bit. Even though information is widely available, it’s not ok to demand perfection. Employees are interested in growth, but doing it in an environment where they’re not allowed to fail can be toxic to the workplace environment. The best thing to do is to challenge employees to think outside the box and expand their skillset, encourage them to really push themselves, but also provide plenty of opportunities to ask questions, or be a sounding board that helps provide additional information they can utilize for their success.

DON’T Accept Age Limits

The whole idea “you can’t teach an old dog new tricks” is outdated. Older employees are completely capable to learn new technologies and procedures. With that in mind, don’t allow yourself to believe that a “young kid” couldn’t possibly have a vast amount of experience and expertise in a specific area. Breaking down these mindsets amongst employers and managers is the first step, but empowering our employees to believe them as well is what’s going to foster employee development and build out a viable work culture.

DO Make Sure the Right Resources are Available and in Good Supply

Lets talk about resources. Odds are you have the right tools to create the products or provide services to your clients, but how are you doing in providing the tools, skills, and support to your employees? Are there channels in which employees can request additional resources and are they widely-publicized so they’re aware of them? If you run a small business holding 1-on-1 meetings might be the right fit, a town hall type meeting might be a better fit for larger employee numbers. Regardless of how you communicate and fulfill employee needs, make sure you address both the things they need to get their job done successfully as well as the things they might want to use in order to grow.

DON’T Overload Employees

Balance is key when it comes to providing employees the change to develop new skills. Requiring, or even providing the opportunity, for outside training could possibly make it harder for employees to be satisfied in their jobs. Have you ever been excited about all you could learn and how much you could grow, only to be overwhelmed by the workload that’s required to obtain it? It happens to the best of us. While it’s important to provide growth opportunities, it’s also important that you help cap the amount of time spent in expanding skills. Make sure you set proper boundaries and if an employee is itching to learn more, consider asking them to lead a project where they can utilize their new skills, or even present an internal training for other employees where they can share what they’ve learned and how it can help their day to day work.

How are you working to implement employee development within your business? We’d love to hear about it in the comments.

How to Make Smart Business Decisions

Have you ever sat down to make a business decision and wondered if what you were leaning toward was a wise choice? You’re not alone. Some might say that smart business decisions are made by those that are business savvy – that answer makes it sound as if being a smart decision maker requires an advanced degree or some type of natural-born talent. Although both of those might be helpful, they’re not required to make smart business decisions. In fact, we believe that smart business decisions are made when those doing the decision making consult the right sources (and we’re not talking about a magic 8 ball).

The answer is simple – financial reports.

How do we create a financial statement?

It all starts with a bank statement. We take a look at your your expenses and income and then categorize them into a variety of categories like:

Supplies
Food & Entertainment
Marketing Costs
Business Equipment
Auto Expenses
Owner distributions
Loan Payments

Here’s where we put our accounting degree to work and create your Profit & Loss Statement and Balance Sheet.

Where to Look When You’re Making Business Decisions

You’ll want to have access to all of these reports for a variety of reasons, but to really make smart business decisions you’ll want to look directly at your P&L. Many business owners look to their cash balance (you can find this on the Balance Sheet) when they’re deciding on purchasing new machinery or hiring an additional employee. That makes sense, no use in thinking about purchasing or hiring if you don’t have the cash to support it. But the Balance Sheet only tells us where we stand at a certain point in time (the end of the month). Your P&L gives you a better picture of how you’re business is fairing overall. If you see a net loss, you might decide holding off on those decisions and see how things go over the next several weeks.

Want read more about the differences in financial statements? You can catch it all in more detail here. Looking to hear it from a certified CPA and one of our co-founders, Ben Sutton – watch the webinar here.

FAQs: Making Smart Business Decisions

1. What are the key reports to consult when making business decisions?

To make smart business decisions, consult your Profit & Loss (P&L) Statement and Balance Sheet. The P&L gives a comprehensive view of your business’s overall performance, while the Balance Sheet shows your financial position at a specific point in time.

2. How does a Profit & Loss (P&L) Statement help in decision-making?

A P&L Statement helps by showing your business’s revenue, costs, and expenses over a specific period. It indicates whether you’re making a profit or loss, guiding decisions such as purchasing new equipment or hiring staff.

3. Why is a Balance Sheet important for business decisions?

A Balance Sheet provides a snapshot of your business’s financial health at a specific point in time, showing assets, liabilities, and equity. It helps you understand your cash position and overall financial stability before making significant investments.

4. How do I create a financial statement for my business?

Creating a financial statement begins with your bank statement. Categorize your expenses and income into categories such as supplies, marketing costs, and auto expenses. From there, generate your Profit & Loss Statement and Balance Sheet to summarize your financial data.

5. Should I rely solely on my cash balance for business decisions?

No, relying solely on your cash balance is not recommended. While it’s essential to know your cash position, the P&L Statement provides a better overall picture of your business’s financial health. It helps you make more informed decisions by showing profitability and expense trends over time.

How to Register for State & Local Taxes

History Behind State & Local Taxes

We can take paying state & local taxes back to the Founding Fathers. From the start of our country, until current day the Federal Government has always recognized the rights of the states to impose taxes on its citizens. When the Constitution was written, the ability to impose taxes was included; however the states retained the right to impose any type of tax except those that are clearly forbidden by the United States Constitution. That’s why Federal Taxes remaining mostly the same over the years while state taxes have the ability to fluctuate year to year as well as between states.

Monies from the state & local taxes are obtained through tax collection, fees and licenses as well as the money granted by the Federal Government to each of the 50 states. The income earned is put towards providing public services including public schools, police forces, health and welfare benefits and the operation and maintenance of state governments.

The most common state & local taxes are the personal income tax, corporate tax, sales, tax and real property tax. Personal income tax and sales tax were introduced in many states between 1930-40’s.

How to Register for State & Local Taxes

It seems that when it comes to taxes, things get confusing quickly. Federal taxes have enough ins and outs, but putting things right side up for a small business when it comes to state & local taxes could make you think twice about doing them yourself. If that’s the case though, we’ve got a few pointers for you:

You’ll want to find out the information that is recent and accurate for your state. Here’s a good place to start: Tax Info by State
You’ll want to register your business entity at these sites so you’re set up when it’s time to file your tax return or pay quarterly taxes.
You’ll want to gather all your financial paper work together before you start working on your return – need a checklist to get you started? Here you go.
If you sell a product or service that is taxable and you’re in a sales tax state, you’ll need to set up a process to collect and pay the monies you collect. Not sure if you’re supposed to be collecting sales tax? No problem – every state except Alaska, Delaware, Montana, new Hampshire, or Oregon has sales tax. Remember, if you’re selling in more than one state you’ll need to be collecting and filing for sales tax in each of the states you’re making sales in.

In conclusion, navigating state and local taxes can be complex and overwhelming, especially for small business owners. Understanding the historical context and current requirements is crucial for compliance and successful operation. If you encounter any difficulties in registering or managing state and local taxes for your business, consider seeking the expertise of a trusted company like Vyde. Our team can provide the guidance you need to ensure that your tax obligations are met accurately and efficiently.

Frequently Asked Questions:

What are state and local taxes?
State and local taxes are taxes imposed by state and local governments on individuals and businesses. Common types include income tax, sales tax, and property tax.
How do I know if I need to register for state taxes?
If your business operates in a state with an income or sales tax, you likely need to register. Check your state’s tax authority website for specific requirements.
What documents do I need to register for state taxes?
Typically, you will need your business registration documents, financial records, and identification information. Refer to your state’s requirements for specifics.
What if I sell in multiple states?
If you sell in multiple states, you must register for and collect sales tax in each state where you have a tax obligation. This includes filing tax returns for each state.
How can Vyde help with state and local tax issues?
Vyde offers expert services to assist with registering and managing state and local taxes, ensuring compliance and helping you navigate the complexities of tax regulations.

How to Make Your Own Business Luck – Increase Profits & Decrease Costs

Many business owners feel that they are strapped for cash, would like to expand their business but don’t know how or how it would be possible. One thing I learned growing up in a low-income household is that there’s always something you can do to change your status. Many times all it takes is to outline your (or your business’) strengths and skills, think outside the box, and network. Instead of wishing for something great to happen, you’ll be able to find helpful and effective ways to make a little business luck of your own, from the items you include in your outline.

Case study: From the beginning, I have paid for everything in cash for my business along the way. It is a goal I’ve had to not borrow any money. This makes it tricky when I just started out, would look at the account and realize, I needed to cut costs, and certain invoicing software costs more than I can afford. So…I went hunting for new invoicing software that was cheaper. I did find one that fit all the needs I had with a trial version. I tried it out and realized that it was a small business developer just starting out. It had most things I needed and the developer would get back to me very quickly on questions I had. After a few months, I found I needed to upgrade to a higher level of this invoicing software because my business had grown. I decided to talk with him about his business needs. This is something you can do with small businesses, but larger businesses are more set in stone. We ended up striking a deal. I test his software out, give him recommendations as I go as a user, he’d change anything I needed along the way and I’d get the product for free for my team for as long as that worked for both of us.

Top 3 ways to Change Your Business Luck:

Affiliate Marketing
Collaborative Partnerships
Negotiations

How to get people to help you out: If you like the sound of a deal like that, look for opportunities, and look for ways that your business can benefit not only customers, but other businesses you need things from. You may have to sacrifice fancy bells and whistles, but you can save money and make a great partnership as well.

Affiliate Marketing: You may have heard this buzzword and be intrigued. Many people get passive income by promoting products on a sales site like Amazon. When customers buy the product through your specialized link, you get a “commission” or “affiliate percentage” off of the sale. This can be done to a huge scale, or if you have a product that compliments your current business strategy (for example, I had a Martial Arts studio client with insanely popular YouTube videos. They started selling costumes the martial artists would wear in the videos with the Amazon link and getting a share from those that would purchase through their link. *Note: You need a large following to make this profitable.

Collaborative Partnerships: This takes a little more risk and “schmoozing.” When you are looking to lower bills, think about what costs most. Think about other ways you could possibly solve that problem that would cost less OR think about how another business you know of might be able to solve your problem. In the ladder case, think about what you have that could benefit that company, and then approach them. I like to offer free Small Business Spotlights as a way to grow exposure and help small businesses get to know me better instead of slimy sales tactics and cold calls. *Note: Make a list of the ways you can benefit them ahead of time. Any size business can use this tactic.

Negotiations: These require the most guts but they can be the most beneficial if you think less like a used car salesperson, and more like a friend who wants to help and needs a favor. When you find a company or person you want to help your business, money is not the only thing that speaks. Think about the needs that company/person has. Set an appointment to discuss a partnership. When you go in, build the relationship, voice your concern, and then just like in the Godfather, “give them an offer they can’t refuse.” Well maybe not COMPLETELY like in the Godfather 😉 *Note: Make a list of the different outcomes you’d be okay with ahead of time. If they say no, find out why and be ready to solve THEIR problem. Any size business can use this tactic.

Different levels of businesses need different levels of these strategies. For more information on the specifics of how to make affiliate marketing, collaborative partnerships, and negotiations help your business succeed, here’s a previous article and an upcoming online free conference that will help!

Frequently Asked Questions

1. How can I expand my business when I feel strapped for cash?

Expanding your business with limited cash flow is possible by leveraging your strengths, thinking outside the box, and networking effectively. Start by outlining your business’s strengths and skills, and explore opportunities like affiliate marketing, collaborative partnerships, and negotiations. These strategies can help you maximize your resources without requiring significant upfront capital.

2. What is affiliate marketing, and how can it help my business?

Affiliate marketing involves promoting products or services on platforms like Amazon, where you earn a commission for each sale made through your specialized link. It can help your business generate passive income, especially if you have a large following. For instance, if your business has an online presence, you can promote products that complement your offerings and earn extra revenue without additional costs.

3. How can I use collaborative partnerships to lower my business costs?

Collaborative partnerships involve working with other businesses to solve mutual problems or reduce costs. Identify areas where your business could benefit from another company’s expertise, and approach them with a mutually beneficial proposal. For example, offering a Small Business Spotlight in exchange for discounted services is one way to create a win-win situation that reduces your expenses.

4. What are some tips for successful business negotiations?

Successful negotiations require understanding the needs of the other party and offering solutions that benefit both sides. Approach negotiations as a partnership rather than a transaction. Before negotiating, list possible outcomes that you find acceptable, and focus on building a relationship with the other party. Offer a proposal that addresses their needs while fulfilling yours, and be prepared to adjust your offer based on their feedback.

5. How can I find opportunities to make strategic partnerships for my business?

To find strategic partnership opportunities, start by assessing your business needs and identifying companies that could help meet those needs. Research potential partners and consider how your business can offer value to them. Networking events, industry conferences, and online communities are excellent places to connect with potential partners. Approach them with a clear proposal that outlines mutual benefits, and be open to creative solutions that can help both businesses thrive.

Why You Should Choose an Accountant Over Doing It Yourself

We’re accountants, so you’re probably thinking that this article is going to be completely biased towards hiring accountants, preferably us, to do your bookkeeping and taxes, right? Well, we’d love to meet you and talk to you about your business, financial goals, and so on. We’d also like to make your life easier by taking care of the day to day management of your books, and filing your business (and personal) taxes come tax time. But we’re going to be honest here and give you the pros and cons of hiring an accountant to take care of things, because we get it – we’re doing the small business thing too, and we know that straight talk, especially when it comes to business stuff, is exactly what you want and need.

Reasons to Do the Accounting Yourself

There are plenty of reasons to hire an accountant, but lets talk about the reasons you might not want to (despite the fact that it may not be in your budget at the moment).

You can understand tax laws – if reading tax law is your thing, we totally get that. Our guess is that you’re either incredibly savvy (like us accountants are) when it comes to these things, or you’ve missed your calling and should be an accountant. But in reality, some people just seem to get this stuff- they might have taken some accounting courses in college and spending the time deciphering tax laws and codes doesn’t make them pull their hair out. If this is you – you might want to just save yourself the cash and take a go at it yourself.
Numbers are your thing – when it comes to bookkeeping, we’ve seen it all. If numbers give you warm fuzzies and talking spreadsheets, P&Ls, and Balance Sheets make your heart sing, then handling your monthly books and filing your taxes isn’t a bad idea.
If your taxes are simple or unchanged – honestly, there are people out there that fit this category. If you’re not taking out business loans, running a large payroll, making investments, buying and selling property, or changing your marital status then doing your own taxes is pretty straight forward. If you’re trying to figure out if your taxes are in the simple or unchanged category and you’re not sure… read on.
You don’t own property or investments- we briefly mentioned this above, but other investments might include Roth IRAs, 401(k), stocks, bonds, running rental properties, vacation homes, partial ownership in timeshares, and so on.

Reasons to Hire an Accountant

If you’ve read this far you obviously didn’t nod your head to any of the bullets above. Just to make sure we’ve got you headed in the right direction, here are some reasons hiring an accountant will be beneficial to you.

Getting a handle on your money – everyone needs a budget, and many people have one, but few actually stick to the plan when it comes to their money. If you’re feeling that keeping track of receipts, logging mileage and making note of expenses is kind of something that you do in vain, odds are that you don’t really have a handle on your money and there’s no clear plan for how to grow your business or manage your finances when you business does grow. An accountant can help with that – in fact they love it.
You’ve started a new business – the best thing a new business owner can do is have a solid financial plan. We get that being business savvy and having entrepreneur mojo is what everyone talks about when their business is an overnight success, but a solid plan will make that success that much more certain and its the best way to keep track of how your new business is faring. Hiring an accountant can get you off to a good start and can answer questions about what type of business entity you want to be so you maximize your income and minimize what you pay in taxes.
Life changes have happened this year- maybe you got married, divorced or had a child. Purchased a new home, changed jobs, or decided to quit or day job and take your side hustle to a full-time gig. These types of changes make filing taxes intricate. They don’t happen all the time, so the ins and outs aren’t something that you’re filing year after year – for us accountants, we see clients with these changes all the time, and making note of these things is just part of the job.

In conclusion, deciding whether to hire an accountant or handle your own bookkeeping and taxes ultimately comes down to your comfort level, business complexity, and personal preferences. If your financial situation is simple, and you’re confident in your ability to navigate tax laws and manage your books, doing it yourself might work. However, if you’re feeling overwhelmed with managing the day-to-day of your small business finances, or if you’re facing significant life changes, hiring an accountant can be a game-changer.

An accountant not only helps you avoid costly mistakes but also ensures your business finances are in order, providing the expertise to help you make informed decisions for future growth.

If you find yourself struggling with accounting issues and feel overwhelmed, don’t hesitate to reach out to Vyde Expert Firm in Accounting. Let us handle the complexities of your business finances so you can focus on what you do best—growing your business. Contact us today to get started!

FAQs

Why should I hire an accountant instead of doing my own bookkeeping and taxes?

Hiring an accountant ensures that your finances are managed professionally, saving you time, effort, and potentially money in the long run. They help with everything from understanding complex tax laws to managing your business’s books and ensuring that you’re maximizing deductions. If your financial situation involves any complexity or life changes, an accountant can provide the expertise you need to navigate it smoothly.

What are the benefits of doing my own accounting and taxes?

If you’re comfortable with numbers and tax laws, doing your own accounting can be a good option. It may save you money, especially if your taxes are simple and your financial situation is straightforward. If you’re not managing complex investments, business loans, or large payrolls, you may feel confident handling the basics yourself.

When should I hire an accountant if my business is small?

Even small businesses can benefit from an accountant, especially if you’re new to business ownership. An accountant can help you create a solid financial plan, manage cash flow, and guide you in choosing the right business entity to minimize taxes. They can also ensure you’re compliant with tax regulations, which can be time-consuming and complicated.

Are accountants helpful if I’ve experienced life changes this year?

Yes! Life changes such as marriage, divorce, having a child, changing jobs, or turning a side hustle into a full-time business can significantly impact your taxes. Accountants are experienced in handling these types of changes and can ensure that your tax filings are accurate and optimized for your new situation.

Is it worth hiring an accountant if my taxes are simple and unchanged?

If your tax situation is straightforward and you’re comfortable managing it, you might not need an accountant. However, if you want to ensure you’re not missing out on any deductions or potential savings, or if you simply want to avoid the stress, an accountant can still provide peace of mind and potentially save you time.

5 Reasons Taking Notes Will Make You a Better Small Business Owner & Entrepreneur

You probably thought that taking notes was something that only happened in college, and high school if you’re were the studious type. But who knew that it would not only spread into the business world but help set apart high achievers and successful entrepreneurs? The research did. Many studies have shown that taking notes helps us to understand, remember, and retrieve essential facts when we need them most; but those same skills can be incredibly meaningful in the world of business as well. Here are 5 ways note-taking can set you apart as a successful entrepreneur and help your ideas blossom.

Note-takers are many things, but they definitely:

Are Avid Learners

There’s no needed for taped spectacles and pocket protectors here. Avid learners come in all shapes, sizes and a variety of fashions – but the one thing they have in common is that they are constantly asking questions. They’re tracking information, formulating questions, digging for answers and drawing conclusions, which in turn will lead to more questions. Those nerdy types in high school soaked up information like a sponge and often spouted out corrected answers whenever possible. Research shows that writing information down helps us pull out essential facts and starts the process of understanding – connections come once the notes are reviewed and ideas are consolidated.

Application: Successful entrepreneurs of today have put the skill of avid learner to use. They ask questions, make connections and apply their findings in real time. Their propensity to learn new things makes their brains and their processes malleable – making change and progress all that much easier to implement. To put this skill to use, think of areas of your business that may be antiquated or need a refresh. Start asking questions of yourself, employees, and maybe even your customers. You may be surprised at how easy the changes are to implement and how much they might effect your bottomline.

Know That Remembering Information is Important

It may bring on a cold sweat as you remember cramming for exams and trying to memorize countless facts so you could pass a class. Odds are that a professor or friend might have mentioned that a good way to remember something is to write it down. What seemed like a good suggestion has actually been proven as fact. Research has shown that a person has a better chance of remembering the facts if they’ve taken the time to write them down. In fact, students who had been taking notes in a class ,were 7 times more likely to remember the facts a week later than those who had not.

Application: This idea pairs perfectly with avid learning. Constantly learning isn’t enough – we have to be able to retain and then draw on information when needed. As a business owner you have many hats, you’re probably nodding in agreement that keeping track of all the details all the time is nearly impossible. If you aren’t already taking notes, consider starting a log of some sort where you jot down information that might be useful in the future. (i.e. websites that provide useful business tips, that new software your business friend mentioned, an idea that your daughter shared with you that she learned in her business class, etc. ) Even if you can’t recall the specifics you’ll have an easier time finding solutions if you have a place to start looking, and odds are you’ll recall a lot more than you thought you might just by looking at your notes.

Know How to Spot Cues

It may seem like being observant is a gift, but it actually is a skill that can be finely honed. Note takers have a lot going on during a meeting or presentation. They’re listening, writing/typing, and concentrating on what’s being said so they don’t miss a beat. Efficient note-takers seem to develop a sixth sense for spotting verbal and non-verbal cues. For example, during presentations speakers often pause or repeat a main idea, change their tone or inflection while trying to get a key point across. Non-verbal cues might include a deck of slides shared during the presentation, writing on a whiteboard, or when a speaker seems animated while speaking because they’re using their arms and hands to make a point.

Application: Knowing how to spot cues puts any entrepreneur ahead of the game. They seem to intuitively know that Jane was passionate about the project, or that Larry’s knowledge about an aspect of the project is unsurpassed. Odds are they weren’t told this information, but that they picked it up from spotting verbal and non-verbal cues. Even if you’re not expertly skilled in this area you can always start now and hone the craft as you go. A good place to start, both to practice your skill and mine some useful information, is an informal employee interview. Sitting down one-on-one provides you a chance to ask if there are concerns or ideas that they have for their job – you’ll be able to get some useful stuff, and practice looking for non-verbal cues that you’ll jot down as well to use in the future.

Are Efficient Readers/Leaders

Remember the kid that always seemed to have the right answer and raised his hand first in class? They seemed to know the assigned text by heart, and remembered countless details in addition to the answer the professor was looking for. It may have seemed annoying at the time, but that skill, when applied, can make a pretty amazing leader. Note-taking while reading is a great way to maintain focus and helps you practice summarizing key points. When it comes to running a business this skill helps you pinpoint problem areas, lead out in finding a solution, and summarize needs and how to fill them quickly – that makes for efficient processes which in turn bring success.

Application: It seems like just another to-do but adding some useful reading to your daily tasks might not be a bad idea. Some of the world’s best entrepreneurs and leaders have been noted to be well-read and they seem to be applying the ideas they’re gleaning to real life so they must be taking notes of some kind as well as just reading about them. If you dig around the internet for a minute you’ll find several subscription offerings that have curated great reads for aspiring businesspeople and leaders (just to prove a point, we’ve linked this sentence to a popular one.) Even if you don’t cough up the funds for the subscription, you might want to make note of some of the more popular business reads and set aside 20-30 minutes each day to take their information in.

Ready For New Ideas

Odds are that you’ve either doodled in the side margins while taking notes for a class or knew someone who did. Would it surprise you that some of the most successful entrepreneurs are avid note takers who not only jot down key points from the topics being discussed, but may have jotted down ideas, notes, or thoughts in the margins (along with their doodles of course)? We’d venture to say that some of the best business ideas and greatest entrepreneurial successes started out in the side margins of a notebook. Consider it brainstorming by 1 person instead of a group. Where do these ideas come from? They’re often the questions that come to mind while a person is learning something new, jotting down information that is important so they can make connections, etc.

Application: While you’re sitting by the pool taking on your next business read, or attending a work meeting or industry conference, make it a point to have paper and pen handy. Then instead of just jotting down the important points that are being covered, take time to jot down the ideas and questions that come to mind while you’re listening. When you review your notes, see if you can’t draw connections or brainstorm ideas for the questions you posed in the margins. What you’ll find might be the next big thing for your business, or even answer a question you’ve had regarding growing or managing your business.

So how will you step up your note taking game? What things do you already implement in your day to day and which might help you and your business grow? We’d love to hear in the comments.

FAQs:

1. Why is note-taking important for entrepreneurs?

Note-taking helps entrepreneurs understand, retain, and retrieve crucial information, fostering continuous learning and problem-solving skills.

2. How does note-taking help entrepreneurs become avid learners?

Avid learners constantly ask questions, track information, and draw conclusions, enhancing their adaptability and fostering progress in their businesses.

3. What role does note-taking play in remembering information?

Research shows that writing down information significantly improves retention, helping entrepreneurs recall essential facts and make informed decisions.

4. How does note-taking help entrepreneurs spot cues during meetings or presentations?

Efficient note-takers develop the skill to spot verbal and non-verbal cues, enhancing their ability to understand nuances and make insightful observations in business settings.

5. How does note-taking contribute to fostering new ideas and innovation?

Note-taking encourages entrepreneurs to capture ideas, questions, and thoughts, sparking creativity and potentially leading to groundbreaking innovations in their businesses.

How to Calculate Self Employment Taxes as a Small Business Owner

As small business accountants, we hear the question “how much should I put aside for self-employment taxes?” and other similar questions quite often. Although the answer really is “it depends”, we know that doesn’t help much in helping you get your books in order and make sure you’ve got enough come tax time. Today, we’re going to cover the basics of self-employment tax so you’ve got a handle on what it is and how it works, as you continue to grow your business.

What is Self-Employment Tax & Does It Apply to Me?

The self-employment tax is a combination of Social Security and Medicare taxes. If you’ve ever worked as an employee for a company, your pay stub should have reflected a certain dollar amount that was being withheld from your paycheck. The amount withheld is matched by your employer and then given to the government to cover the Social Security and Medicare taxes.

If you’ve decided to jump into the world of entrepreneurship or run a profitable business of any kind, you’re likely to become liable for self-employment tax. The self-employment tax rate is 15.3% – which is a combination of 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% Medicare (hospital insurance).

So when does Self-Employment Tax kick in for your side hustle? Generally, if you have net earnings from your business of $400 or more, you’re required to file an income tax return and pay self-employment taxes. The good news is that paying self-employment taxes is easy – it’s actually reported as part of your annual individual tax return.

How is Self-Employment Tax Calculated

Your tax professional or tax software should guide you through the process of filing self-employment taxes, but it’s always nice to know some of the details of how it works.

When you file your taxes your self-employment tax is calculated based on your net profit (business income – business expenses). All of your business’ net income is subject to the Medicare portion of the tax, but only the first $127,200 is subject to the Social Security portion. When it comes to self-employment tax, you pay twice the tax rate because you’re covering both sides of the tax (the individual portion as well as the employer’s matched portion). It’s because of this, that the government gives you a tax deduction for half of the self-employment tax you owe, reducing your taxable income overall.

How do I estimate my Self-Employment Tax so I Have Enough to Cover My Taxes Come Tax Time?

You could probably make a pretty good guess if you’ve made it this far, but we’ll break it down into a simple formula.

First you’ll need to find out what your net profit is. To do that use the following formula:

Net Profit = Total Income – Deductible Expenses

If you’ve got fancy accounting software or have hired a professional, you can check your Profit and Loss Sheet (P&L) and be able to find this number as well.

Now the amount of taxes you actually pay overall is determined by our tax bracket – and that’s determined by the amount you earn. (This is why we answer questions with “it depends”).

Our rule of thumb is to set 25% of your net profit aside for taxes (this recommendation holds true for LLC, sole-proprietor and s-corp businesses). You may end up owing a little more or a little less, but you’ll be sitting easy at tax time and that’s what counts.

Want to hear all this from one of our expert accountants and founders of Vyde? He covered this and many other common tax questions for small businesses in a recent webinar.

Should I Itemize or Use Standard Deductions?

Today we’re talking tax deductions, what they are, what qualifies, and how it will help your small business. Grab your favorite beverage and a notepad and pen and get ready to spend the next 30 minutes getting expert advice on how to work deductions to your benefit. Have a specific questions or don’t have time to watch the entire episode? Check out the show notes (with watch times) below.

What qualifies a deduction?

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Ordinary – an expense that is common and accepted in your trade or industry.

Necessary – an expense that is helpful and appropriate in your business.

Basis for Deductibility

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Cash – when you actually purchase, that is the day when something becomes deductible (this the default and the most beneficial for the small business to use)
Accrual – when you receive the expense, that’s the day that the expense becomes deductible
Hybrid – a mix between cash and accrual

What Will I Save?

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Tax Savings Formula

Deduction x Tax Rate = Tax Savings

Examples of What You Can Deduct

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Vehicles (for business use)

Phone

Equipment (Tools, Camera, Computer, etc.)

Supplies (Office, Cleaning, Hardware, etc.)

Contract Labor

Business Meals

Travel

Insurance

Website and Software

Taxes

Marketing and Advertising

Insurance

Where’s My Tax Refund & Other Tax Filing Information

You beat the rush and filed your taxes early. Having the stress over with is nice, but having that cash from your tax refund in your bank account would make the success of getting it done all that much sweeter, right? It’s true that the IRS issues more than 9 out of 10 refunds in 21 days, but it’s also possible that a review of your tax filing may take additional time. If you’ve ever wondered what happens between the time you file and when you get your refund and how quickly you’ll get that money back from the IRS, read on.

Your Tax Filing’s Journey

Once you, or the tax professional you hired, hits the submit button on your tax filing it’s just a waiting game on your side. That said, your submitted taxes aren’t just sitting around. Here’s how it all works out:

your tax return is hit with a “time stamp” or an electronic postmark – this keeps us all on track and puts your return into the system before it’s passed on for review.
The IRS has 24-48 hours to accept your return. This process includes them checking the personal information submitted with your tax return against the information they have for you on file.
If/when all the information checks out, the IRS officially accepts our return and you’re put on the IRS payment timetable.

From there your tax filing is processed and reviewed and only the IRS knows that status and whether or not you owe taxes or should be issued a refund – how you file also adds to the length of time your return takes. That said, you can start checking your status 24 hours after you’ve e-filed your paperwork by accessing the IRS’s tool Where’s My Refund?

E-file & Direct Deposit

If you e-file your taxes, you have fairly good odds that you’ll get your tax refund quicker than doing it the old fashioned way. E-filing provides you with the option to have our refund directly deposited into your account and it’s the safest, and fastest, way to receive your refund – not to mention the easiest process to complete. However, if you’re still filing a paper version of your taxes, you can still take advantage of the direct deposit method.

To take advantage of getting your tax return by direct deposit you simply need to provide the account and routing numbers for the account you’d like the money deposited to. There will be a spot to input the numbers on your return if you’re using a tax software program to do it yourself or you can provide the information to the professional that’s taking care of the filing for you.

Regardless of your method, direct deposit definitely gives you quicker access to your refund than a paper check coming to you in the mail.

What to do with That Refund?

Federal tax refunds are often the largest single check many people receive – so it’s a great time to start saving or even invest a portion of your return. You can easily divide your refund into two or three additional bank accounts with a submission of just one extra form. This option gives you the chance to manage your money – sending some to one account for use while the rest goes to savings or investments for future use.

Resources

Author: Jake Snelson

DO Look for Employee Strengths and Hidden Talents

DON’T Ask a Fish to Climb a Tree

DO Allow for Failure

DON’T Accept Age Limits

DO Make Sure the Right Resources are Available and in Good Supply

DON’T Overload Employees

How do we create a financial statement?

Where to Look When You’re Making Business Decisions

FAQs: Making Smart Business Decisions

1. What are the key reports to consult when making business decisions?

2. How does a Profit & Loss (P&L) Statement help in decision-making?

3. Why is a Balance Sheet important for business decisions?

4. How do I create a financial statement for my business?

5. Should I rely solely on my cash balance for business decisions?

History Behind State & Local Taxes

How to Register for State & Local Taxes

Frequently Asked Questions:

Frequently Asked Questions

Reasons to Do the Accounting Yourself

Reasons to Hire an Accountant

FAQs

Are Avid Learners

Know That Remembering Information is Important

Know How to Spot Cues

Are Efficient Readers/Leaders

Ready For New Ideas

What is Self-Employment Tax & Does It Apply to Me?

How is Self-Employment Tax Calculated

How do I estimate my Self-Employment Tax so I Have Enough to Cover My Taxes Come Tax Time?

What qualifies a deduction?

Basis for Deductibility

What Will I Save?

Examples of What You Can Deduct

Your Tax Filing’s Journey

E-file & Direct Deposit

What to do with That Refund?

Why Investing in a 401(k) is a Good Idea

What You Need for Tax Filing