Log In
Mazuma is now Vyde
learn more..

Resources

Author: Jake Snelson

Underwithholding

What is Underwithholding?

What is Underwithholding?

Underwithholding is when you haven’t had enough income taxes withheld during a year. If a tax payer’s incomes taxes are underwithheld, it does not mean that tax payers doesn’t have to pay the taxes. Tax payers pay the underwithheld taxes when he or she files a tax return.

The withholding amount is determined by how many credits you claim on your W-4. Claiming too many credits is what causes underwithholding.

Underwithholding isn’t necessarily a bad thing. Some people prefer to have more money now and pay their taxes later. In that case, underwithholding could be a good thing. However, if you know you are underwithholding, then it’s smart to set some money aside to pay taxes. If you underwithhold by mistake, you would need to pay the government those taxes. If you can’t pay your taxes all at once, you can set up a payment plan with the Internal Revenue Service (IRS) to make your payments slowly.

Underwithholding Scenario

A mid-sized company employs Bill Jones. When Bill was hired he filled out a W-4 form and claimed as many credits as he could in order to lower his taxes. This worked really well for Bill because he had more income coming in. However, when he began filing his tax return in March, he realized that he hadn’t paid enough in taxes. Because he took so many credits his employer had underwithheld his income taxes.

Bill ended up having to pay taxes with his tax return. He decided to change the number of credits he was claiming so that he wouldn’t have to pay taxes with his return again next year. Instead of claiming as much as he could, Bill decided to only claim 2 credits. Bill won’t know if he withheld enough taxes until next year when he files his tax return.

 

Email Marketing Campaign

How to Create an Email Marketing Campaign that Drives Sales

If you’re not using email marketing in your small business, it’s time to fix that! Email marketing is an essential tool for small business owners. It’s the perfect way to reach out to your customers, remind them of your business and build a community.

While it’s great to build a relationship with your customer base, email marketing needs to bring in more business. The following tips will help you create better emails that will convert email addresses to sales.

Create an Attention Grabbing Subject Line

Your subject line is the first impression you’ll make with your readers. A lot of times, it’s the only part of your email that your customers will read. Which is why it’s so important that you make it intriguing.

A good rule of thumb, when you’re crafting a subject line for your email marketing campaigns, is to keep it short. Some screens cut subject lines off after 50 characters. Effective subject lines get to the main point quickly, but still leave the reader intrigued enough that they’ll open the email. If you can’t fit everything in the email, use the pre-header text to give more information about what’s in the email.

Another good practice is to tell your customers what they can expect from the email they’re about to open. If you’re sending a freebie then let them know! Your content should be enticing so that when you tease it in your subject line people can’t wait to open it.

Make Your Email Marketing Personal

Make Your Email Marketing Personal

Small businesses have a leg up over big companies in one particular area: they can get to know their customers on a personal level. As a small business owner, you probably know most of your clients. You can strike up a conversation with them and remember details of their lives. This relationship is what drives people to your company. You need to replicate this relationship in your emails.

The easiest way to make your email marketing more personal is to use customers’ names throughout the email. Most email marketing services use coding to input your customer’s name in an email. This makes it easy to send bulk emails that are still personalized. Make sure you use your customer’s names throughout the email and not just at the beginning. People love hearing their own name and if they come across it in the copy of the email it will draw them back in and keep their attention.

Make Your Emails Easy to Read

If you’ve crafted an attention grabbing subject line, you can get your emails opened. However, if you don’t make your marketing emails easy to read, you’ll never make the sale. A reader should flow easily through your email. The main points should be easy to discern. If your reader only has a couple of minutes to scan your email they should be able to get everything they need quickly.

Big brands are great at all of these techniques. One trick they use to make emails easy to read and still draw the reader in is graphics. Instead of saying “We’re having a great sale!” in text they put it on an image. The word “SALE!” on a picture takes less time to read and digest, and it grabs your attention. Infographics and charts are also useful when you’re trying to get people’s attention.

Make Mobile Friendly Campaigns

Finally, when you’re creating an effective email marketing campaign, you’ll want to make sure it’s mobile friendly. Most people open their emails on mobile devices. In fact, 53% of emails are opened on phones. This trend is only increasing, so it’s critical that you understand how to create emails that work on computer and phones.

Make Mobile Friendly Campaigns

The most important part of creating a mobile friendly is making sure it will fit on a smaller screen. It’s best to design your email in one column. This helps people to see it on a small screen without making the user scroll to the left or right.

We talked about using graphics in your emails to make things stand out, but you need to be careful with images. They need to be optimized so that they load quickly, and you need to add descriptive text (also known as alt text) so that if the image fails to load, the reader can still get a sense of what the image was. Experts recommend using 3-5 images in an email.

What is a Tax Credit

What is a Tax Credit?

What is a Tax Credit?

A tax credit reduces the amount of tax a business or individual has to pay. The government uses tax credits to encourage or reward behavior that they find beneficial. For example, the government can give a tax credit to people for replacing old appliances with new, energy efficient ones. Most tax credits are given to benefit the economy or environment; however, the government can create tax credits for any reason.

Tax Credits cover expenses that you have paid during a tax year. In most cases, you have to meet certain requirements in order to qualify for a tax credit. Because there is such a wide range of tax credits, it is good practice to check with your accountant before you make purchases that could be tax credit. Once you are aware of the qualifications for each credit, you can follow the regulations so you can claim the tax credit.

Both tax credits and tax deductions reduce the amount of tax liability, but there is a difference between the two. Tax credits directly reduce your taxes. Tax credits are “dollar-for-dollar,” meaning that if you owe $1,000 in taxes, but have $1,000 of tax credits, then you would owe zero dollars in taxes. A tax deduction, on the other hand, decreases your taxable income. If you made $100,000 but had $20,000 in tax deductions, you would only be taxed on the $80,000 for that tax year.

Tax Credit Scenario

Derek is a doctor of chiropractic and owns his own business. As a small business owner, Derek tries to take advantage of as many tax credits and deductions as he can. After reviewing the business tax credits, he’s decided to make some changes in his business so that he can take advantage of these credits.

First, Derek is going to start a retirement plan so that he can take advantage of the Credit for Small Employer Pension Plan Startup Costs. Most employers with fewer than 100 employees don’t have retirement plan options. The government encourages business owners to start pension plans by offering a tax credit. The Pension Plan Startup Costs tax credit offers a credit of 50% or $500 a year for three years. This should help offset the costs of setting up a plan and educating employees about it,

Another tax credit Derek can take advantage of as a small business owner is the Credit for Employer-Provided Childcare Facilities and Services. Derek has a few working mothers on his staff. To help ease the burden on them he has decided to pay for some of their child care services. The employer-provided childcare services tax credit offers small business owners a 25% credit or up to $150,000 a year.

Finally, Derek is going to take advantage of the Credit for Small Employer Health Insurance Premiums. The small employer health insurance tax credit rewards small business owners who pay for insurance coverage for their employees. However, it is a little harder to take advantage of. You must have at least 10 full-time (or full-time equivalent) employees. Those employee must have wages under a certain amount, which changes each year. Small business owners must purchase plans through the Small Business Health Options Program (SHOP.) Finally, you can only claim the credit for two consecutive years.

Tax Credit Scenario

When Derek does his taxes for the next year these tax credits will be deducted from the taxes he owes and will lower what he pays in taxes.

Frequently Asked Questions: 

1. What is a tax credit?

A tax credit is a financial incentive provided by the government that directly reduces the amount of tax a business or individual has to pay. Unlike deductions, which reduce taxable income, tax credits lower the actual tax liability dollar-for-dollar.

2. How does a tax credit differ from a tax deduction?

A tax credit directly reduces your tax bill, meaning if you owe $1,000 in taxes and have $1,000 in tax credits, you owe nothing. A tax deduction, on the other hand, lowers your taxable income, which reduces your tax liability indirectly by lowering the amount of income subject to tax.

3. What types of expenses can qualify for a tax credit?

Tax credits can cover a wide range of expenses, such as energy-efficient home improvements, retirement plan startup costs for small businesses, and employer-provided childcare services. The specific expenses that qualify depend on the type of tax credit and the criteria set by the government.

4. Are there specific requirements to qualify for a tax credit?

Yes, most tax credits have specific eligibility requirements that must be met to qualify. These requirements vary depending on the type of credit. It’s advisable to consult with an accountant to understand the qualifications and ensure you meet them before claiming a tax credit.

5. Can a small business owner claim multiple tax credits?

Yes, a small business owner can claim multiple tax credits, provided they meet the eligibility requirements for each. For example, a business owner might claim credits for starting a retirement plan, providing childcare services, and offering health insurance to employees, all within the same tax year.

Business Credit Cards

An Accountant’s Secret to Making Your Business Credit Cards Work For You

Credit cards get a bad rap. They are intertwined with massive debt, but that doesn’t have to be the case. Learning how to use business credit cards can help you move your business forward.

We don’t recommend getting into credit card debt. That is not going to make your business credit card work for you. Instead, we recommend using business credit cards to make purchases that you know you can afford.

The only way to effectively use business credit cards is to pay them off, in full, each month. If you can’t do that, then you can’t make credit cards work in your favor and you’ll be a slave to the credit card company.

If you can pay off your credit cards each month, then you can take advantage of these benefits.

Build Credit with Your Business Credit Cards

The most important thing you can do with your credit cards is to build credit. A lot of people want to pay cash to avoid going into debt, but when you own a business that’s just not possible. Your business must have established credit.

One of the best reasons to build credit through business credit cards is so that you can make future purchases. Business who don’t have any credit have higher loan rates, if they can even qualify for a loan. However, if your business has a solid credit history you will be able to get loans to grow your business.

Earn Rewards from Your Cards

Who doesn’t love earning rewards? Earning rewards from your business credit cards is like getting free money (or travel, or whatever reward your card offers.)

The key to this “free money” is to pay those credit cards off in full! Like we discussed before, this is the only way to get the most out of your cards.

When you’re choosing business credit cards look at all the different rewards options and choose which will benefit you and your business the most. If you travel a lot, then choose a card with reward miles; then you can save money on flights, and maybe even get in-flight perks! If travel isn’t a big deal for you, cash back rewards are always great. You can use your rewards in countless ways.

Track Your Business Expenses

First and foremost, we want to emphasize that you need a business credit card. You shouldn’t be using a personal credit card for business purchases. This causes a lot of headache when it comes time to reconcile accounts. As bookkeepers, we beg you to separate your personal and business expenses!

Second, credit card statements are a great way to keep track of your business’ expenses. The Internal Revenue Service (IRS) allows you to use credit card statements as proof of purchase, so if you lose a receipt but have a credit card statement, you can still prove that you made a business purchase. Most credit card companies keep records of purchases for years. If you have an online account, you can access those anytime.

Monitor Business Finances

As long as we’re talking about business expenses, we might as well mention monitoring your business’ finances.

Employers can hand out company cards to employees, which has a lot of benefits (like not having to run to the store to pick up a birthday cake yourself.) But, there’s always a risk involved with handing out a card. If you want to make sure your employees aren’t abusing the credit card, you can monitor all the purchases.

Another common scenario, as employees move up in the company they get company cards. Managers need to have access to company money and a credit card is a great way to get them that access. If this is the case in your company, look for business credit cards that allow you to give your employees their own cards free of charge. Some cards will even allow you to set spending limits for each card. This can help you monitor who is keeping to their budgets.

Don’t let your business credit cards get the best of you. Learn how to use them and make them work for you!

 

Claiming Travel Expenses on Your Business Trip

Claiming Travel Expenses on Your Business Trip (Plus How You Can Afford to Bring the Whole Family)

Business travel expenses add up quickly when you’re trying to impress clients or even just need to stay a couple nights in a new city. Hotels, food and transportation costs add up quickly. Luckily, the Internal Revenue Service (IRS) counts business travel expenses as deductible items. Claiming travel expenses can help you save money whenever you have to leave town on business.

When you’re claiming travel expenses you want to make sure that you’re doing it correctly, so that you can avoid a tax audit. Knowing what constitutes a business travel expense and how to claim them will keep you safe.

What Constitutes a Business Travel Expense?

The IRS allows you to claim travel expenses when you leave the general area of your tax home for longer than a day’s work. Your tax home is wherever you do your work. That means if your tax home is in Salt Lake City, but you have to travel to San Diego for business, claiming travel expenses would be acceptable.

However, if your tax home is in Salt Lake City, but you live in Las Vegas and you travel to Salt Lake during for the week for work, where you stay in a hotel and eat out at restaurants but return to Las Vegas every weekend, you cannot claim travel expenses. Salt Lake would be the tax home so any expenses to get to and from your tax home would not be deductible.

What Expenses can I Claim?

After you’ve determined if your expenses qualify as business travel, it’s time to determine what is deductible. As with all business expenses, claiming travel expenses must be necessary and ordinary. You cannot claim any travel expenses that are lavish, extravagant or personal.

The IRS allows you to claim the following travel expenses:

  • Travel by plane, bus, car or train.
  • Taxi fare between your hotel and the train/bus station or airport. Transportation between your hotel and the work location. Travel from customer to customer or from your work to a customer. Ubers or other ride sharing services are also deductible.
  • Shipping of baggage and other necessary business tools. This can include, but isn’t limited to, displays and sample materials.
  • Use of a car, for business purposes. This includes a car rental. You can deduct mileage for business trips only; you must subtract any personal use. Any tolls or parking fees can also be claimed as travel expenses.
  • Meals and lodging
  • Dry cleaning or laundry services
  • Business calls, or other forms of communication, such as faxes.
  • Any tips paid on these services.
  • Entertainment costs when you’re doing business.

Other expenses can be claimed, but it’s best to consult your accountant with any questions.

How does Claiming Travel Expenses Work?

If you plan on claiming travel expenses we have one piece of advice: keep your receipts. The fastest, easiest way to prove how much you can deduct on a business trip is by knowing what you paid. Save all of your receipts from meals, hotels, cab rides, absolutely any time you pay someone ask for a receipt. (When you’re tipping keep track of how much you pay and where you paid it so that you have a record of it.)

When you file your tax return you’ll fill out an IRS from for business trips and submit with your tax return.

How Can I Turn My Business Trip into a Vacation?

Business trips can be incredibly boring if you go back to your hotel alone and watch TV every night. However, if you plan it out right, you could bring the whole family along and turn your business trip into a memorable family vacation.

If you are in charge of the plans for your business trip, then it makes it a lot easier to add some family time. Because you need to focus on business while you’re on your trip, try find a way to extend the trip so you can spend a few days with your family. The IRS isn’t usually too keen about adding days to the end of your trip, so try to schedule meetings late in the week (Thursday or Friday) and at the beginning of the week (Monday or Tuesday.) That way you can spend the weekend doing fun family activities.

Just because you’re bringing your family on a business trip doesn’t mean that their expenses are business related. You must keep your family’s expenses separate from your business expenses. You can’t deduct anything that you do for your family as business expenses. However, as long as the trip is mostly business your travel to and from the destination is still considered a business expense.

 

What is Sales Tax

What is Sales Tax?

What is Sales Tax?

Sales tax is a consumption tax on goods and services. State governments, along with county and local governments, set the sales tax; however, not every state has sales tax.

The purpose of sales tax is to fund government projects. The revenues from sales tax are used to fix roads, improve communities, or build infrastructure.

Consumers pay sales tax at the point of sale on goods or services. Businesses charge the consumers and then pass the taxes onto governments. Businesses are liable to pay sales tax if they have any presence in the state. This can mean a brick-and-mortar business, an affiliate, an employee or any other type of presence. States have passed laws requiring online retailers, like Amazon, to charge and pay sales tax.

Because products can pass between many businesses between production and the final sale, only businesses who sell directly to customers have to pay sales tax. The other businesses who handle the products get a resale certification from the government. The resale certification says that the business is not liable for the sale tax because they are not selling directly to consumers.

Sales Tax Scenario

Sales tax at brick-and-mortar businesses are fairly straight forward. We’ll present a scenario for affiliate sales taxes.

Jordan is a tech blogger. He uses affiliate links from several companies to make money from his blog. Jordan lives in Georgia, where there are affiliate nexus laws. Affiliate nexus laws state that companies who use affiliate links and make over a certain amount from those sales must pay sales tax.

The Georgia nexus affiliates state that if a company makes over $50,000 from the nexus in Georgia, then the company must pay sales tax. The companies who work with Jordan have a two options on how they want to proceed. First, they can wait and see if the hit the threshold of sales before paying the taxes. The downside to this is that they may be liable for any penalties or interest due on the unpaid taxes. The second option is that the company collects sales tax up front and then if they have to pay sales tax, they already have the funds set aside to do so.

Jordan, as an affiliate, doesn’t have anything extra to do. However, some companies avoid working with bloggers who live in states with affiliate nexus laws. As more states enact affiliate nexus laws this may change.

 

Organizational Habits for Small Business Owners

5 Organizational Habits for Small Business Owners

When you run a small business, the title, owner, translates to: head of marketing, inventory manager, customer service rep, etc. It’s impossible to stay on top of everything unless you develop organizational habits.

Learning to be more organized is essential to living a balance and happy life. However, there are a few direct benefits to becoming organized. First, being organized helps to lower stress. We don’t have to tell you what relieving a little stress can do for your health. Second, by developing organizational habits you can become more effective. Which means you can do more with your business and improve your life.

Conquering these 5 organizational habits can help you stay on top of all the tasks pulling at you and help you grow a successful business.

Organizational Habit 1: Prioritize Your To-Do List

The first organizational habit you should develop is utilizing to-do lists. A simple to-do list on your phone can free up so much space in your head.

A to-do list is a great place to start but in order to be more organized you’ll have to go beyond just listing things out. Learning how to prioritize your to-do list is going to simplify your life.

When you don’t know how to prioritize, you end up being overwhelmed by a long list of things to do and you don’t accomplish anything, at least not fully. You must be able to pick out the most important items on your list and do them first. Not only is a prioritized to-do list going to give you more direction, it can also free up some of your time.

Once you prioritize what you need to do, you can delegate any tasks that don’t require your attention to your team. Learning to delegate is a life saver as a small business owner.

Organizational Habit 2: Prepare for Tomorrow

Everyone wants to be able to leave their work behind and relax at the end of the day, even small business owners. However, there is always a list of things that need to be done. This organizational habit will help you leave work behind so that you aren’t constantly thinking about it.

Before you leave work for the day, take a couple of minutes to jot down any tasks that need to be done the next day. This will help you in two ways. First, a good brain dump will free up your mind. So, instead of spending all night remembering tasks that need to be done, you can spend five or ten minutes at work to think and jot them down. Now you can relax for the rest of the evening. Second, when you come into work the next day you won’t waste time trying to figure out what you need to do. You’ll already have a list of tasks to complete and you can prioritize those and get going.

Keep Track of Your Time

Organizational Habit 3: Keep Things Tidy

There is a huge correlation between a cluttered space and a cluttered mind. In order to focus on your work you need to minimize other distractions, including clutter!

The first step in becoming tidy is having a place for everything. Look around your desk or office and determine what you can store away. What do you need within arms reach? Find a place for everything so that when you’re finished with it you know where it should go. Also, take this time to declutter. The less you have the better!

Once you have a place for everything you must be diligent in keeping things in order. Don’t procrastinate putting things away. It’s also a great to get in the habit of cleaning up your space for a couple minutes every day. Cleaning at the end of the day is a great way to decompress from a day’s work and set yourself up for success tomorrow.

Organizational Habit 4: Scan Important Documents

Being tidy can be relatively easy, until we get hit with a stack of paper. Paper tends to be the biggest contributor to clutter. The simplest way to clear your space and your mind is to get rid of the papers.

Instead of hanging on to every piece of paper learn to toss them. If you think it might be important later, scan it and save it on your computer. If you want to know how long to keep something you can use our guide, How Long to Keep Important Financial Documents.

Organizing Receipts

Receipts are a whole other mess to be tackled. You need to keep track of important receipts, especially anything you plan to use as a business deduction. Anything that isn’t going to be used for tax purposes can be tossed.

The IRS accepts digital copies of receipts, so any important receipts can be scanned and saved for future reference.

It’s good to get in the habit of scanning your receipts and organizing them within files on your computer. You can also add notes along with your receipt so that you know what the expense was for. This will come in handy if you’re audited and have to prove why that lunch was a business expense.

Organizational Habit 5: Keep Track of Your Time

We’re not talking about clocking in and out. You’re the boss. Your paycheck isn’t based on the hours you put in. What we’re talking about here is keeping track of how you spend your time.

There are a lot of different time organizational habits you can choose from. However, the most important thing is to learn how to focus on one task at a time. Whether you time block or use the Pomodoro method, or some other trick,  you have to be able to stick to one thing if you want to organize your time.

Scan Important Documents

An important aspect of time management is learning to minimize distractions. This means turning your phone on silent, closing Facebook and shutting your office door. If you allow too many distractions in your workspace then you won’t be able to focus on your tasks. You’ll spend more time doing simple tasks and you wont’ be able to accomplish nearly as much.

We hope these 5 organizational habits will help you improve your business. Let us know what works for you!

FAQs on Organizational Habits for Small Business Owners:

Why are organizational habits crucial for small business owners?

Small business owners juggle various roles, and being organized helps manage tasks effectively, reducing stress and increasing productivity.

How can I prioritize tasks effectively using to-do lists?

Prioritize tasks based on urgency and importance to streamline workflow and ensure crucial tasks are completed first, enhancing productivity.

Why is preparing for tomorrow important for small business owners?

Preparing tasks in advance allows for a clear mind and efficient workflow, minimizing wasted time and maximizing productivity the following day.

How can I effectively manage paper clutter and important documents?

Scan and digitize important documents to reduce paper clutter, ensuring easy access and organization. Utilize digital receipts and categorize them for efficient record-keeping.

What is the significance of tracking time for small business owners?

Tracking time aids in optimizing productivity by focusing on one task at a time and minimizing distractions. Implementing time management techniques enhances efficiency and task completion.

 

Feeling overwhelmed by all the things you have to do for your business? Cultivating these 5 organizational habits can help you run a better business.
Rehabilitation Tax Credit

What is the Rehabilitation Tax Credit?

What is the Rehabilitation Tax Credit?

The rehabilitation tax credit is a federal tax credit that encourages real estate developers to renovate or restore older buildings. Buildings built before 1936 are the target of the rehabilitation tax credit.

Any renovations made on buildings from 1936 or earlier are eligible for a 10% tax credit. Any buildings that have historical status are eligible for a 20% rehabilitation credit. The tax credit only applies to buildings being restored for business purposes.  Buildings with historical status must work with the National Parks Service and meet their requirements.

Contractors cannot claim the tax credit. In order to claim the rehabilitation tax credit you must be the title holder of the property.

The purchase of a building is not eligible for the rehabilitation tax credit. It also cannot be used for landscaping, or repairs to sidewalks or parking lots. You must make improvements to the structure in order to qualify for the credit.

If you want to qualify for the rehabilitation tax credit you must meet certain requirements. You must also meet project deadlines and hit the completion date on time in order to qualify.

Rehabilitation Tax Credit Scenario

Jonathan recently purchased a building in the historic downtown portion of his town. The building is registered as a historical site through the National Parks Service. Because of it’s age, the building needs a lot of updates and repairs.

Jonathan is planning to make those repairs and wants to take advantage of the rehabilitation tax credit. However, since his building is already a historical site, the National Parks Service has to review all of his plans.

The first step Jonathan takes is to contact his local State Historic Preservation Office. He’ll start the process with them. They’ll provide all the forms he needs. Next, the National Parks Service will review his application and see if the repairs Jonathan intends to make conform to the standards set by the Secretary of the Interior.

Once the National Parks Service approves the project, Jonathan can begin construction. Throughout the project the State Historic Preservation Office will make site visits.

Jonathan will claim the rehabilitation tax credit on his taxes for the year in which the project is completed. On the return, Jonathan must put the project number the National Parks Service issued to him.  The Rehabilitation tax credit will cover 20% of the qualifying expenses.

Frequently Asked Questions

What is the Rehabilitation Tax Credit?

The Rehabilitation Tax Credit is a federal tax credit that incentivizes real estate developers to renovate or restore older buildings. Buildings constructed before 1936 can receive a 10% tax credit, while those with historical status are eligible for a 20% credit. The credit applies to structures restored for business purposes.

Who is eligible to claim the Rehabilitation Tax Credit?

Only the title holder of the property can claim the Rehabilitation Tax Credit. Contractors are not eligible to claim this credit. The credit applies to renovations or restorations of buildings, not to the purchase of the buildings themselves.

What types of buildings qualify for the Rehabilitation Tax Credit?

Buildings built before 1936 are eligible for a 10% tax credit. Buildings with historical status, as recognized by the National Parks Service, are eligible for a 20% rehabilitation credit. The credit is applicable only to buildings restored for business purposes.

What kinds of improvements qualify for the Rehabilitation Tax Credit?

To qualify for the Rehabilitation Tax Credit, improvements must be made to the structure of the building. The credit does not apply to landscaping, sidewalk repairs, or parking lot repairs. The renovations must meet certain requirements and project deadlines to be eligible.

How does the process work for claiming the Rehabilitation Tax Credit?

To claim the Rehabilitation Tax Credit, you must first contact your local State Historic Preservation Office. They will provide the necessary forms and guide you through the application process. The National Parks Service will review your application to ensure compliance with the Secretary of the Interior’s standards. Once approved, you can begin renovations. After completion, you will claim the credit on your tax return, including the project number issued by the National Parks Service.

5 Branding Tips for Small Business Owners

Create a Brand Identity

Branding is the way your company presents itself to the world. It comprises a lot of different aspects like: image, voice and audience.

We’re going to go over what you can do to build your brand and create a better company.

1. Create a Brand Identity

Although the look of your brand isn’t everything when it comes to branding it’s a good place to start.

When you’re creating a brand identity, you’ll want to figure out how you want to make people feel. Once you’ve decided that then you can start to design your image.

You’ll want to create an identity that is easy recognizable. Think of some of the big brands. What do you think of when you see red and yellow? McDonalds. What about when you see the green M for Monster?  Create a logo that is distinctive and uses colors that represent the feeling you want to convey.

2. Define Your Audience

Audience is an important aspect of branding. How can you draft your message without knowing who you’re speaking to?

When you’re determining who your target audience is here are a few things to consider.

  • Who does your product serve?
  • What demographic do you want to reach?
  • What is your company’s mission?
  • Can my audience afford my product or service?
  • What values are important to you?

Once you’re able to determine who you want to target you can begin to brand a message.

3. Develop Your Voice

Now that you know who you want to talk to, you need to develop your voice.

Voice is the way your brand expresses who it is, usually in writing. A brand’s voice helps keep things consistent across all branding efforts.

When you’re developing your voice, you should consider what feelings you want to portray. Do you want your brand to be funny, serious, friendly? Once you’ve decided on that you can start determining your what your voice sounds like.

Next, you can find key words or phrases that will help define your voice. When you use these words or phrases consistently it will help build an association between your brand. Your audience may even start using these phrases in their own lives, which will help grow your brand.

4. Be Consistent

The biggest part of building a brand is consistency. Make sure the brand identity you’ve developed is consistent throughout all parts of your branding.

If you decided that your brand wants people to feel happy and excited, then you’ll want your image and your voice to match that. A black website that has a convoluted voice isn’t going to achieve your goal. Instead, you’ll want to use bright colors in your design and have an upbeat voice.

Develop a Branding Strategy

5. Develop a Branding Strategy

Nothing can move forward without a concrete strategy and branding isn’t any different. In order to create a successful brand you need to determine how you’re going to do it. Here are a few things to consider when you’re developing your branding strategy.

Use Social Media

Social media is an essential tool in marketing and it’s a perfect place to implement your branding strategies. People are going to recognize your visual branding first. You want them to be able to know something is yours right when they look at it. Then, you’ll want to connect with them using your voice. Social media is great because it can connect your brand identity like nothing else can. Plus, it gives you a chance to interact with potential customers and win them over.

Reward Loyalty

Whether you’re creating a new brand identity or improving on the one you have, it’s important to make your customers a part of your brand.

When you’re starting out new, make sure you find a way to thank each person who supports your business. Or, if you’re rebranding and already have a strong customer base, then find ways to show them you’re still there for them while you’re also taking on new clients. Check out this post on customer appreciation for ideas.

Include Emotion

Humans aren’t completely rational and your branding shouldn’t be either. Using emotion in your branding is a surefire way to get your clients to really connect with your brand.

Go back to your brand’s identity. How do you want to make people feel? What can you do within your brand to bring those emotions to the surface? Perhaps you’re a dentist and you want your patients to feel comforted and relaxed. You’ll want to include photos of people smiling while talking with a dentist. You’ll use colors that are peaceful. And your voice will convey assurance and peace. Emotion can be and should be used in every aspect of your branding.

Do you have any other questions about branding? Let us know!

Include Emotion

Frequently Asked Questions (FAQs) about Branding

  1. What is the first step in building a brand?
    The first step in building a brand is creating a brand identity. This includes designing a logo, choosing colors, and crafting a visual image that conveys how you want people to feel when they interact with your brand. It’s important to create something distinctive that is easy to recognize.

  2. Why is defining your audience important in branding?
    Defining your audience is crucial because it helps you tailor your message to the people you’re trying to reach. Without knowing who your target audience is, you won’t know how to communicate effectively. By understanding who your product serves, their demographics, and their values, you can create a brand that resonates with them.

  3. What role does “voice” play in branding?
    A brand’s voice is how it expresses its personality and values, typically in writing. It helps maintain consistency across all marketing efforts and builds a connection with the audience. Whether you want your brand to be funny, serious, or friendly, developing a consistent voice ensures that your message is clear and relatable.

  4. How can I ensure consistency in my brand?
    To ensure brand consistency, make sure that your brand identity—such as your logo, colors, and voice—is aligned across all platforms and materials. For example, if your brand aims to make people feel excited and happy, everything from your website’s design to your social media posts should reflect that through bright colors and an upbeat tone.

  5. What should be included in a branding strategy?
    A successful branding strategy should include the use of social media to showcase your brand’s identity and engage with customers. Rewarding customer loyalty and using emotion to connect with your audience are also essential. Think about how you can evoke emotions that align with your brand’s mission and values to build a deeper connection with your audience.

Power of Customer Surveys

The Power of Customer Surveys

 

Customer Surveys

Customer surveys aren’t a priority to a lot of businesses. Business owners wonder if it’s really worth the effort, and sometimes money, to survey customers. We’re here to tell you it’s definitely worth it!

Customer surveys hold a lot of power. They give your happy and unhappy customers a chance to let you know what you’re doing right and what you’re doing wrong. Plus, it gives unhappy customers an productive outlet to express their frustrations. Did you know, that a dissatisfied customer will tell 9-15 people about their experience, according to a study by the White House Office of Consumer Affairs. Instead of having them tell other potential customers about their experience you can have them tell you directly, which gives you a chance to fix it!

These four tips will help you craft a great customer survey!

Include Your Branding

The first thing you want to do when you’re creating your customer survey is add your branding to it. You want your customers to know that they’re interacting with your business.

Going above a basic template and including your brand’s images and colors will help keep your customer focused on you during the survey. This is also a great chance to use your voice. Remember, this is another interaction between your business and your customers, so treat it just like any other interaction. Make it a great experience.

Ask the Right Questions

Ask the Right Questions

Great customer surveys are short and to the point. At most there should be 10 questions. Most of these questions should be multiple choice, or on a rating scale, but you have to include space for people to give feedback in their own words.

Here are a few things you should consider when you’re generating questions for your survey.

  • The interactions between the customer and your business
  • How your team’s performance has been. Include back office staff as well!
  • Overall satisfaction
  • Value of your products or services

One thing you should avoid when crafting your questions is asking leading questions. If your questions are worded so that it makes you sound amazing, then it really turns people off to your business. Customers want to know that you’re humble and open to criticism, whether it is good or bad.

Allow for Open Feedback

Allowing open feedback is how you can get real opinions and suggestions on how to improve your business, or learn if what you’re doing is really working.

You can add a spot for feedback after each question with a rating, so that people can expand on why they gave you the rating they did. Or you can ask open ended questions so that your customer can respond with their opinion. However, you don’t want to make too many questions open ended because it may turn people off to your survey. Remember, this shouldn’t take up too much of your customer’s time.

Follow up

Here’s where you take a customer survey and use it to blow every other business out of the water. It’s great to send out a generic thank you email after taking a survey, but when you follow up with something of value to someone who has taken the time to finish the survey that’s what really counts.

If someone has complimented your business, take the opportunity to show them how much you appreciate their business. Sending a note or even a gift card can show them how much you appreciate them.

Follow up

Now, if someone has given you bad feedback, it’s critical that you follow up. This is where you can turn their experience around. First, apologize that their interaction wasn’t anything but satisfactory. If they gave you any specifics on how you could improve, tell them that you’ve read their suggestions and are going to try implementing them into your business. If there is anything else you can do to change their opinion, do it. There are so many people who hate a company but their opinions are completely changed by good customer service! It’s worth the effort.

Frequently Asked Questions

Why are customer surveys important for businesses?

Customer surveys are vital because they provide insights into what your business is doing right and wrong. They offer unhappy customers a productive outlet to express their frustrations, which can help prevent negative word-of-mouth and allow you to address issues directly.

What are the key elements of a good customer survey?

A good customer survey should include your branding, be concise with a maximum of 10 questions, mostly multiple choice or rating scale, and allow for open feedback. This structure ensures the survey is engaging, focused, and provides valuable insights.

How should businesses handle negative feedback from customer surveys?

Businesses should follow up with dissatisfied customers promptly. Apologize for their unsatisfactory experience, acknowledge their feedback, and inform them of any actions you plan to take based on their suggestions. This can help turn a negative experience into a positive one and show that you value their input.

What type of questions should be included in customer surveys?

Include questions about customer interactions with your business, team performance (including back office staff), overall satisfaction, and the value of your products or services. Avoid leading questions to ensure honest and useful feedback.

How can businesses maximize the effectiveness of customer surveys?

 To maximize effectiveness, follow up with customers after they complete the survey, especially those who provided negative feedback. Show appreciation to those who gave positive feedback through personalized notes or small gifts. Use the survey results to make tangible improvements in your business operations.

Load More

Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.

Twitter Facebook Instagram Youtube

Our Services

About Vyde