Business Accounting - Vyde

5 ways to Boost your Productivity

One of the things we’re constantly working on is finding new ways to boost productivity. We’ve asked around, tried a few things here in the office, and come up with these tips that are helping us save time, and do more without adding stress to our game plan.

Get in Early (or Stay Late)

We’ve all heard the phrase “the early bird gets the worm”. We’re not sure if you’ll get the worm or not, but we do know that getting into work early provides you with quiet time and fewer distractions, which means you’ll have a chance at getting more things done. Most people who get into the office early say that they accomplish more during that time then they do the rest of the day, and we think they’d all agree that getting things done gives you a burst of energy that starts your day off right and boosts your overall productivity. If you’re not a morning person, that’s ok. The idea works just as well if you’re the last one in the office – the key to boosting productivity is to find quiet time with few distractions and to focus on tasks that forward your overall progress rather than solving problems.

Minimize Distractions

We’ve talked about minimizing distractions by being an early riser or staying late at the office, but what works for minimizing distractions during normal business hours? We’ve asked around and here’s what we found when it comes to limiting distractions and boosting productivity:

if you’ve got an office door close it
silence your phone for an hour or two – just don’t forget to turn it back on and check your voicemails
don’t reply to texts
block off time on your calendar so you can power through a project or specific task
only reply to emails in the morning, evening, or in 15 minute increments
grab your laptop or tablet and change your scene – reserve a conference room, hang out in the lobby, or even go to a local coffee shop and use their wi-fi

Batch Tasks

Multi-tasking is skill, but it’s not always the best tool for getting things done. Productivity experts have shown that it’s more efficient to complete similar tasks at the same time, rather than whiz around trying to do everything at once. Try reading and responding to emails for 15-20 minutes and jotting down tasks that you’ll need to complete as you go. Then instead of prioritizing your to do list, group similar tasks together. You’ll find you’ll save time by not having to switch gears or mindsets as often, and be able to push more projects through than you would if you followed one from start to finish before taking on the next one.

Leave the Office for Lunch

It seems like we’re suggesting a leisurely lunch, but what we’re really getting at is using this moment away from the office to your advantage. Almost everyone has experienced the afternoon slump that occurs in the office. It seems to drag productivity down rather than giving it a boost. Taking a few minutes to change your scene, take a walk, grab a bite to eat, and even finish up a few work tasks while you eat your lunch can re-energize you and get you ready for a productive afternoon. If you don’t have lunch places near by, bring a sack lunch and head outdoors; even walking the stairs or around the building will give you a change of pace and a chance to clear your mind.

Plan the Day the Night Before

Take just 15 minutes at the end of your workday and see what you have on the docket for tomorrow. Boosting productivity doesn’t always mean you have to work faster or harder, planning ahead can create the same effect. If you’ve got meetings, gather up whatever files you may need, plus a pen and paper to take notes. If you know you’ll be spending the day doing a certain task; plan to dress for the occasion. Have a long conference call scheduled? Make sure you’ve got a water bottle at your desk, and an extra battery or charging cable for your phone so you can take you meeting on the go. Prepping the night before saves you time gathering up items the day of and also prepares your mind for what you need to accomplish – and that means you’re not wasting valuable minutes trying to get your mind in the game.

Want to read additional tips we put to practice to boost our productivity here at Vyde? Check out this post for more ideas…

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.

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.

Started a 401k This Year? Here’s What You Need To Know Come Tax Time

For many, landing a job right out of college is a necessity. There are student loans to pay back, rent/mortgage not to mention the general costs of living. Most need as many dollars in their pocket as possible to afford living, so saving for retirement often gets put off. We get it, bills are bills. The one thing we don’t think about is retirement. But a 401(k) is a great way to invest right out the gate (or whenever you decide to start one really). Read on to find out why investing in a 401(k) is a smart move and how it brings more perks than just money for retirement.

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

your contributions go in tax free – meaning you’re getting interest on every penny you put in rather than the amount minus tax
because your contributions go in pre-tax, that means your taxable income right now is lower – that’s a win for sure!
Many employers match your contribution – which means you get free money! Check with your HR department to find out the details so you can take advantage of this benefit if it’s offered.
Saver’s Credit at tax time – you may or may not qualify for this one, but it’s worth checking into. With the Saver’s Credit, you could get up to $1000 credit if you’re single or $2000 if you’re married filing jointly.

What You Need for Tax Filing

With all the perks, you’d think the downside of the 401(k) would happen come tax time – but there’s no additional paperwork for you. Your W2 reflects your 401(k) contributions. If you want to see how much you’re saving now, take a look at your W2 and you’ll see how much your taxable income is lowered by contributing to your 401(k).

Have questions about filing taxes? Want to know what other forms of investing would work for your current financial status. We’d love to chat with you – contact us here.

How to Build an Authentic Social Media Presence – Part II

You can find Part One of How to Build an Authentic Social Media Presence here.

Now that we’ve talked about the importance of having an authentic presence on our social media platforms, and we’ve reviewed a strategy for posting a variety of post types on our platforms, it’s time to talk about the nuts and bolts of making it all happen.

Types of posts

When putting together social media strategies, it’s important to remember the 3 P’s. Personality, Practicality, and Passionatism. Potential customers need to get to know you, just like going on a date. You can let them get to know you casually by sharing something general. Next, you share knowledge you have on the subject in a non-sales way, just helpful (building credibility). After that, you share something personal. All along the way you’ll respond to their comments, and observe their interests (likes, ha-ha’s, sad’s, etc). An example* of what to post with this strategy in mind is as follows:

1. Monday: something about the time/season of the year/holiday/motivational,
2. Wednesday: Educational, but helpful: How-to’s, Tips/Tricks, and
3. Friday: show personality, behind the scenes, videos with the owner/creating the product, etc.
4. Once per week, add a link talking about a sale Tuesday OR Thursday-talk about what event you have coming up, or both but not the next week

*This is a general schedule and may not work for all industries. It is also a starting point. Some companies have enough engagement/following to do well with more content. It’s best to take the advice and tailor it to fit your specific industry/product/service.

Social media isn’t all about sales and Call To Action’s (CTA’s), it is about building relationships with other people that need what you have. With that in mind, I recommend posts with heartfelt quotes, celebrations of holidays, etc. Social media is also about being consistent. Once you have started posting, reach out to engage your audience and let them know you are “available” and will continue to post information that is insightful and helpful.

Target audience

Time for a quick test…AGH! Don’t worry. This is easy.

Q: Who is the target audience?

If you answered “the general internet” you may be right, but you’ll agree that doesn’t really narrow things down at all.

You may ask, “Why do we need to narrow things down? I want all people to know about my product! All people can benefit from my Thneed (The Lorax).” Well, SOO GLAD you asked! More success comes from engaging people that have already had an interaction with you or already know you exist. Just like in our dating analogy, this becomes the point where someone that has met you few times, gone on a few dates, knows and likes you, could eventually ask to “marry” you. Beyonce’s line about “if you liked it you should’ve put a ring on it” works opposite in this case. If the CUSTOMER likes it, the CUSTOMER will buy your product or make the “move,” or “put the ring on it.”

Tip: Narrow your target audience down to those who already love your product/service. The tip here is to use your Current, Past, and Prospective Customer database as your target market. Don’t “hard sell” them, but let them be part of your “inner circle.” Invite them to get to know your company better, and let them help you on your journey. Let them know you have a social media page, let them know you’ll be posting tips and how-to’s, freebies that relate to them and help them in their lives, and behind the scenes that they’ve helped you with. Many times people also respond well when they feel they’re doing you a favor, “check out our new menu and let us know if there’s any changes you want us to make! Thanks for your help!” This can be done with an email, a video in an email (more personal), or a direct message on the social media platform they are on most.

Social media won’t bring you clients per se, but it will let people get to know you the same way fliers and open houses do, but much much BETTER. Will every person who gets a flier come to an open house? Not likely. Will every person that comes to the open house buy the house? No. Will every person who visits your page be interested? No. But they will continue to come back if you have things that relate to them, appeal to them, and interest them. This will keep your company in their mind when they hear of someone that needs that help or if/when they need it. It’s about keeping your company in their line of vision.

Check out a similar blog articles or Gerber Business Solutions’ social media feed (@gerberbusiness) with additional helpful tips.

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Types of posts

Target audience