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After a client begins using your products or services, it’s easy to focus on gaining even more clients, rather than focusing on the ones you already have. Thanksgiving is the perfect time to show your existing clients how grateful you are for their loyalty, and expressing that gratitude doesn’t have to be expensive.

client begins using your products or services

Here are 12 quick, easy, and inexpensive ways to show gratitude for your clients this November:

    1. Go old school with a handwritten note. The importance of this simple gesture cannot be overstated. In fact, in an increasingly fast-paced, technology-driven world, handwritten notes are becoming a lost art. Have trouble sharing your feelings? Try this guide.
    2. Send them a treat. Cookie tins are always a hit, and can fit into almost any budget. Other popular treats are fudge, meat and cheese trays, fruit baskets, gourmet candy, and freshly baked bread. Have them delivered to your client’s office before they’re bombarded with goodies in December.
    3. Share your knowledge. Communicate with clients and share your expertise. Whether it’s an email newsletter, helpful hint on social media or printable checklist, customers love useful information about the service or product they’re purchasing.
    4. Remember special occasions. If you have inside information about a client’s business anniversary or special occasion for them, send them a quick email or message congratulating them or wishing them well.
    5. Offer them 15 minutes of fame. Spotlight a client in your newsletter or social media page. Offer some free publicity by linking to their website and giving a quick shout out about how great they are.
    6. Reward them with a coupon or gift. Get in the gift-giving spirit by offering an awesome discount at your store or business. Design the coupon around a theme of gratitude for that extra holiday touch.
    7. Host an event. This idea may be a little more costly, but if the money is in the budget, host an event at your business. It doesn’t have to be anything extravagant–order a sandwich tray and some punch and get the party started! Send out invitations asking your clients to stop by for lunch and a quick visit.
    8. Give a great read. Get your Christmas client appreciation done early by choosing a great book that is inspirational and thought-provoking for your clients. Be sure to include a handwritten note or bookmark in the cover. You may even choose a few of your favorites and put some thought into which book to send to which client.
    9. Start a loyalty program. If you haven’t already, start a program that gets customers excited about continuing their business with you. Offer special discounts, extended shopping hours, or extra perks during the holiday season for loyal clients only.
    10. Discount their bill, just because. Clients will be surprised and appreciate the extra savings during a financially stressful time of year. Slash their monthly bill by 50% one month or offer 25% off at the register, just because you appreciate their business.
    11. Make them laugh. If you’ve got a creative mind on staff, have them step up and create a funny and personalized client gift or message. One idea: Photoshop your client into a famous movie poster, rename it something clever and email the picture with your note of “Thanks for your business!”
    12. Most importantly, do all that you can to improve their customer experience. Nothing shows clients how much you care quite like asking for honest feedback, responding personally and thoughtfully to it, and then making changes to better serve them. Be open and willing to adapt. Your clients are sure to appreciate just knowing their voice has been heard.

improve their customer experience

FAQs:

1. Why is it important to show gratitude to existing clients?

Expressing gratitude fosters loyalty and strengthens relationships, leading to long-term client satisfaction and retention.
2. What are some inexpensive ways to show appreciation to clients during Thanksgiving?

Options include handwritten notes, sending treats, sharing knowledge through newsletters or social media, acknowledging special occasions, and offering discounts or coupons.
3. How can I personalize client appreciation gestures?

Tailor gestures to individual clients by acknowledging their business anniversaries, spotlighting them in newsletters or social media, or sending thoughtful gifts such as books with handwritten notes.
4. Is hosting an event for clients feasible for small businesses?

Hosting an event doesn’t have to be extravagant. Even simple gatherings at your business with refreshments can provide a personal touch and foster client engagement.
5. Why is it important to prioritize improving the customer experience?

Actively seeking and implementing client feedback demonstrates a commitment to their satisfaction. Adapting based on their input enhances trust and loyalty, ultimately benefiting both parties.

As 2015 comes to a close, you have an opportunity to reflect on the past year with your small business. What worked? What disasters did you encounter/overcome? What was the one thing you knew you should do for your small business but could never find the time? Now is the time to make a plan for an even better business year in 2016 and crush the goals you set for yourself.

In order to conquer the small business world next year, there are a few logistics to take care of first. We’ve put together a quick and easy checklist of things to do and take care of in January so you have 11 full months of small business bliss. Download the printable version, here.

 

kickstart2016

If you own a small business, you undoubtedly work from home, at least on occasion. If you’re like many small business owners in today’s world, you might even work exclusively from home. Whichever category you fall under, claiming a “home office” on your taxes and adding it into your small business bookkeeping can be tricky.

Here’s how to set up and maintain a home office that is in line with IRS standards.

What qualifies as a home office?

What home office expenses are tax deductible?

How do I claim a home office on my taxes?

What if I do business outside of my home office?

Can I claim a bathroom as part of my home office?

Do you have other questions about your home office? We can help! Send us your questions or leave them on our Facebook page and we’ll be sure to answer them as quickly as possible.

Unfortunately, no. You can’t claim a bathroom as part of your home office, even though you likely take a potty break or two during your work day.

Remember the two most important words when it comes to home offices?

Exclusive and Regular. Even if you mostly use the bathroom closest to your home office while you work, the second you use it as a guest bathroom, for your children, or “off the clock,” it’s not exclusive anymore. In all reality, that’s not happening in most homes. Nine out of 10 times you can’t claim a bathroom as part of your home office.

Take this case study, for example:

“In T.C. Memo. 2011-201, Luis Bulas, Petitioner, v. Commissioner of Internal Revenue, Respondent, Docket No. 18977-09, U.S. Tax Court Judge Haines agreed with the IRS that taxpayer Luis Bulas was not entitled to a deduction for his use of the bathroom as a home office expense.

Bulas, a Florida taxpayer, knows a little something about the tax system. He has a master’s degree in accounting from Florida International University. Even better, he worked for the IRS for seven years as a tax technician, revenue agent, Appeals auditor, and Appeals officer, prior to starting his own tax agency. So, yes, for a long while, he was the guy who helped make decisions about whether a taxpayer was complying with the tax laws (cue music).

Bulas also happens to be a father of two daughters, one in high school and one in college, that helped him out with the business from time to time. This is only relevant because he claimed that he paid wages to his daughters and yet managed not to issue any forms 1099 or forms W-2 to them, a fact that also came up as part of his examination.

But, yawn. That’s kind of run of the mill boring stuff. Let’s get to the potty humor.

Bulas was flush enough (wince, I know, terrible pun) to have a personal residence which included a house, a garage, and a guesthouse. The total amount of space worked out to about 2,677.34 square feet.

Like many professionals, Bulas used one of the rooms in his home – in this case, a spare bedroom – as his office space. The total amount of the space for the bedroom was 226.3 square feet. Bulas eventually put an additional bathroom in his home, ostensibly for his clients’ use.

The IRS issued Bulas a notice of deficiency, denying the deductions for the wages paid to his daughters and the business use of his residence. Bulas, of course, appealed, which is how the case made it to Tax Court.

Bulas claimed that he used one of the bedrooms in his house exclusively for his office. Um, okay. That seems reasonable.

Bulas also argued, however, that he used the hallway – wait, he’s losing me here – and the bathroom exclusively for his accounting business. He went on to testify that his children and personal guests also used the bathroom.

The IRS was willing to grant him the use of the bedroom. The bedroom was, as mentioned earlier, about 226.3 square feet, which worked out to about 8.45% of the total square feet associated with Bulas’ residence. That means that he was entitled to pro-rate his allocable expenses and take 8.45% as a business deduction. No more. Bulas could not offer proof that the personal use of the hallway and bathroom met any exception under section 280A(c) of the Tax Code and thus, the personal use of the space trumped the business use. The result? He lost the deduction.”

Even though a regular office has a bathroom (let’s hope anyway!) you can’t claim one on your home office. There are, however, a plethora of other deductions available when claiming a home office. Capitalize on those and let go of that extra 100 sq ft you thought you might be able to claim this year.

FAQ – What Home Office Expenses are Tax Deductible?

When it comes to home offices, it’s all about the tax deductions, baby! You could sit on your couch, watch tv, and do your small business bookkeeping and billing...but there’s no tax benefit to that. By creating and maintaining a home office for your small business, you can claim home office deductions that in turn reduce your taxable income at the end of the year. If you have already set up a qualifying home office, start tracking expenses and keeping meticulous records for your income taxes.

Here’s a lengthy, though not comprehensive, list of common home office deductions. Keep in mind these do not include typical business expenses that you would normally deduct whether or not you had a home office.

Tax Deductible Home Office Expenses

  • Paint
  • Carpet
  • Repairs or additions to the structure of the office
  • To learn about the unlikely deduction a bathroom as a portion of your home office, read this post.
  • Office decorations
  • Office furniture including desks, chairs, rugs, lamps, and that fancy painting you just had to have to hang above your desk
  • A separate business phone line (you cannot deduct a landline used for your home phone calls)
  • Other home-related expenses or repairs including snow plowing, roof repair, and trash removal. These types of expenses are deductible, according to the square-footage percentage of your home used as a business.
  • *You cannot deduct expenses for landscaping or lawn care unless you show off your lawn for your business, like if you own a landscaping company.

You can deduct a portion of these expenses, based on the square footage of your home office:

  • Depreciation
  • Rent or mortgage
  • Property Taxes
  • Home insurance
  • Utilities (electricity, heating, water, sewer)
  • Maintenance
  • General repairs

Home office deductions can be tricky. While claiming a home office is not a red flag for the IRS, you want to be careful and not get overzealous when it comes to deductions. The simplified method can make it easier for you to claim the deduction but might not provide you with biggest deduction.

Interested in Learning More?

Schedule a free consultation with our team!

If you own a small business, you undoubtedly work from home, at least on occasion. If you’re like many small business owners in today’s world, you might even work exclusively from home. Whichever category you fall under, claiming a “home office” on your taxes can be tricky. Here’s a quick step-by-step guide to make sure you’re in line with IRS standards when it comes to your home office.

Home Office for a Small Business Owner

First, to claim a home office on your taxes, both of these things must apply:

  • You use the part of your home exclusively and regularly for your business. If an auditor were to come to your home, they would be able to easily identify your home office. This means the area can’t double as a play area for children or living room for your family. It should look just like a regular office would.
  • The business part of your home must be one of these to qualify:
    • Your main place of business
    • A place where you meet or deal with clients
    • A separate structure (not attached to your home) that you use for your business

Exclusive Use Explained

Exclusive use means you use the area in your home for business purposes only. The area must meet these requirements to be considered “exclusive”:

  • A room or other separately identifiable space, but it doesn’t necessarily need to be separated by a wall or permanent partition
  • The space cannot be used for business and personal purposes
  • The area cannot contain personal-use furnishings like a TV or a couch, even though these items are common in many businesses

Regular Use Explained

Regular use means you use part of the home on a continuous, ongoing, or recurring basis. You can use the space for more than one business, and you can have more than one business location (other than your home office) for each business as well. However, if you’re deducting a home office on your taxes, your home must be the principal place of business. Factors considered in “regular use” of a home office include:

  • Meeting clients or conversing over phone, Skype, or email
  • Selling or delivering goods or services
  • Administrative activities of your business like billing customers, bookkeeping and accounting tasks, ordering supplies, setting up appointments, contacting customers
  • Updating your website, managing SEO, and other computer-based tasks

If you’re employed by another company and work from home, you can also claim a home office. Here’s how:

  • You must meet the home office requirements above.
  • Factors determining home office eligibility as an employee may also include:
    • The employer requires you to maintain a home office as a condition of employment.
    • Your work for their business isn’t possible without a home office.
    • The employer doesn’t provide a space for you to work outside your home office.
    • You don’t rent any part of your home to your employer and use the rented portion to perform services as an employee.

If you’re already working from home and haven’t set up a home office, now is the time. Home office deductions can save you big money on your taxes and help keep your small business activities more organized.

If you read our last post, you know that in order for a home office to be claimed on taxes, it must be used exclusively and regularly for business use. However, that doesn’t mean it has to be the one and only place you do business. Here’s how to keep your home office status as an entrepreneur and still be able to conduct business where you need to.

You can still claim a home office if any of the following apply:

  • Other people conduct administrative or management activities for your business at their business location. Ex: Your accountant does your small business bookkeeping from their office.
  • You conduct administrative or management activities at places that aren’t fixed locations of the business, like in a car or a hotel room.
  • You conduct a substantial amount of these non-administrative and non-management business activities at a fixed location outside your home, like meeting clients for lunch or traveling to conferences.
  • You have suitable space to conduct administrative or management activities outside your home, like at your regular business office. However, you choose to use the home office for those activities.

If you own multiple businesses and work on them both at home AND at an office:

  • Follow IRS guidelines to find out if your home office is the principal place of business for each. It might be for one and not the other.
  • A home office might be the main place of business for more than one activity. However, each activity you conducted in the office must meet all requirements for the deduction. Otherwise, you won’t meet the exclusive-use test for any activity.

Essentially, your home office doesn’t have to be the only place you do business. Your daily business activities as an entrepreneur will undoubtedly take you further than the walls of your home. However, the regular and exclusive use guidelines are most important when determining if your home office is tax deductible.

use part of your home for business

If you use part of your home for business, you may be able to claim a home office on your taxes this year. The home office deduction is available for homeowners and renters, and applies to all types of homes. Learn more if your workspace qualifies as a home office, here.

There are a few ways to claim a home office on your taxes. In 2013, the IRS rolled out the Simplified Method for home offices which can significantly reduce record keeping burden by allowing a small business owner or employee to calculate square footage of a home office and multiply that by a prescribed rate ($5 per square foot for a maximum of 300 square feet), instead of calculating actual expenses.

The Regular Method requires a small business owner to calculate the actual expenses of their home office. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.

Either method is fine for claiming a home office, and some small business owners find one way to be more beneficial than the other. Keep in mind that the method you use to claim your home office is not as important as the use of the space being used exclusively and regularly for business use.

For a full list of deductions and qualifications for a home office from the IRS, click here. Be sure to consult a professional accountant and virtual bookkeeper before claiming a home office on your taxes to make the most of your deductions. Vyde can help with any questions you may have about your home office.

FAQs about Claiming a Home Office on Your Taxes

1. Who qualifies for claiming a home office on taxes?
Homeowners and renters who use part of their home exclusively for business may qualify.
2. What are the methods available for claiming a home office deduction?
The Simplified Method and the Regular Method are the two options provided by the IRS.
3. How does the Simplified Method work?
It involves multiplying the square footage of the home office by a prescribed rate, offering a simplified approach to calculating deductions.
4. What expenses can be included when using the Regular Method?
Expenses such as mortgage interest, insurance, utilities, repairs, and depreciation can be considered.
5. Is it necessary for the home office to be a separate room?
No, as long as the space is used exclusively and regularly for business, it qualifies regardless of whether it’s a whole room or part of one.

The holiday season is the perfect time to show your clients and employees just how much you appreciate them. However, figuring out what to give, when to give it, and what’s tax deductible can be a daunting task. Vyde has made it easy with our comprehensive, deductible-focused Business Holiday Gift Giving Guide.

To get the most bang for your buck, you’ll want to give gifts that are tax deductible. While the IRS doesn’t list specific client gifts that you can or cannot deduct, there are limits on how much you can deduct for each client receiving gifts from you. So how do you know what is tax deductible when purchasing a holiday gift to a client or employee?

Purchasing Business Gifts that are Tax Deductible

Currently, the limit is $25 per recipient per year. There is no limit on how many people you can give business gifts to in a year, but the deductible portion for each recipient is $25. That means if you splurge on a $50 gift basket, only half of that amount is actually deductible. If you’ve already sent your clients a gift this year, be mindful of that running total and the $25 yearly limit.

The actual gift isn’t the only tax deductible portion of business holiday gift giving. Wrapping paper, cards, scissors, tape, ribbons and bows are all tax deductible so fancy it up before shipping it out! And when you get to that mile-long post office line this December, keep your receipts because shipping and stamps are deductible as well. These costs are an addition to the $25 per recipient limit, so the actual gift itself can be valued at $25 and these expenses are still deductible.

If the $25 limit feels restrictive to you, there is a way that can help you deduct even more—and probably cut your work in half, too. According to the IRS, if you give a gift of “entertainment,” you can deduct 50% of the cost.

Examples of entertainment gifts are concert tickets, sporting event tickets, movie passes, restaurant gift cards, vacations, hotel stays, etc. Clearly that $25 limit per recipient can quickly be surpassed in these categories, so your deductions may actually be greater than $25 each if you spend $50 or more. Your clients are sure to love the gift of entertainment and you won’t have to bother with the ribbons and bows. In fact, most of this shopping can be done online and sent to your client electronically.

Who to Send Business Gifts to this Holiday Season

Start making a list of those you’d like to give a holiday gift from your business this year and your list may be as long as Santa’s in no time. Here’s a little tip: focus your holiday gift giving on the people who make your company great.

Your business certainly wouldn’t be what it is without the people who support it–your clients. And if you’re not a one-man band, don’t forget about your employees either. Both of these lists of people are essential on your business holiday gift giving list. Other people you may consider sending business gifts to may include some service providers, potential clients, resources, consultants, contract workers, guest speakers, or those who have referred clients to you.

When it comes to client gift giving, things get complicated in a hurry. Maybe you have a lot of clients who pay only a small amount of money to your business each year. In this case, you’ll want to give smaller, more general items as gifts to your clients. That doesn’t mean a pen and notepad with your logo on it, or something cheap bought in bulk from Oriental Trading. This isn’t about promoting your business, it’s about strengthening that relationship you’ve worked so hard to form. Even if you’re on a tight budget for a lot of people, you can still send a thoughtful, meaningful gift.

If you’ve got too many clients to manage individualized gifts and would rather not send an actual item (inexpensive or not), a handwritten card is a genuine gift that shows your client that you care about them as an individual. Think about the message you want to convey, make it personal, express your gratitude, and hand write it. A personal message directly from you to a client occupies a larger space in their mind than a plastic yo-yo with your company name on it.

Or perhaps you have only a few clients with large accounts. In this case, you may want to invest more money in holiday gifts that show you care and value the business relationship you’ve formed.

Regardless of your situation, cost is undoubtedly on the forefront of your mind when it comes to gift giving. We’ve compiled a list of ideas, categorized by cost, to get you thinking.

Holiday Gift Giving Ideas for Clients and Employees

Gifts Under $15

  • Candy, such as a small box of chocolates, peanut brittle, gourmet butterscotch hard candies, or fudge
  • Refillable water bottle or insulated mug
  • Page-a-day desk calendar
  • Your favorite business book
  • A small bouquet of flowers or holiday arrangement, hand-delivered (maybe even handmade!)
  • A desk toy such as a kinetic motion toy or a clock
  • A small potted plant
  • A gift certificate to a local ice cream or cupcake shop
  • Electronic cleaning kit, complete with microfiber cloth and cleaning spray

 Gifts under $25

  • Small meat and cheese tray with fine mustard or dipping sauce
  • A set of personalized stationery
  • Amazon gift card
  • Gourmet cookies
  • A subscription to a business magazine or website that interests them
  • iPad case or cover
  • Engraved and/or personalized pen
  • Movie tickets
  • A gift certificate to their favorite restaurant

Gifts under $50

  • Digital photo frame
  • Large box of chocolates (suitable for office sharing)
  • Carry-on bag for business trips
  • Sporting event ticket(s)
  • A gourmet food basket
  • A messenger or laptop bag
  • Wrist or clip-on fitness tracker/activity monitor

Entertainment Gift Ideas

These gifts can actually be deducted 50% no matter the cost, rather than the $25 per recipient limit.

  • Sporting event tickets
  • Theme park tickets
  • Restaurant gift cards
  • Movie tickets
  • Vacations/hotel stays
  • Ski lift tickets
  • Golf cart / green fee passes
  • Play/show tickets
  • Concert tickets

Keep in mind that not all holiday business gifts are created equal. You don’t have to give your $100 a month client the same gift you give your $1,000 a month client. It’s ok to send some clients cards and others more expensive gifts. Select a price range that feels right to you based on your relationship with each recipient and go from there.

The Do’s and Dont’s of Business Holiday Gift Giving

DO:

-Give. Don’t promote. You have all year to promote your business; allow the holidays to be a time to focus on your clients and let them know you’re grateful for them.

-Send a card. A handwritten card or personal email can be meaningful and memorable. Gift giving has lost its personal touch over the years and your client will love getting a special note from yours truly, with or without a gift.

-Keep an ongoing list of employees, clients, service providers, and others who make your business great throughout the year. The holidays are a busy time of year, making it easy to forget someone. Keeping a list throughout the year will ease your holiday stress and keep you from overspending at the last minute.

-Set a budget. Not all client gifts are equal, but you do need to have a budget in place before you start shopping.

-Check into a company’s gift giving and receiving policy before shipping your presents. The larger the company, the more likely a specific policy is in place. You don’t want to spend unnecessary cash on a contact who is not allowed to accept your gesture.

DON’T:

-Don’t wait until the last minute. Keep in mind many people take a lengthy break from work to travel during the Christmas season, so sending a gift to a client’s office on December 23rd may not work. Try to have your gifts sent out early in December to ensure on-time delivery.

-Don’t feel pressure to run out and buy a nice gift for everyone who sends you one. This is a quick way to go over budget and is not always necessary. Be sure to send a nice thank you card expressing your gratitude or a holiday card, and add that person to the list for the next year, if need be.

-Don’t send gifts that are too personal or religious. Keep it professional in the work place and avoid gifts like clothing, perfume, and other items people have personal (and sometimes very strong) opinions about.

-Don’t be a brown-noser. Give gifts because you’re grateful and keep it at that. Don’t try to out-do another employee or company, just give from the heart.

Regardless of what you actually send, clients and employees are sure to appreciate a genuine gesture that shows your gratitude for their business and service throughout the year. When in doubt when it comes to holiday gift giving, keep it simple and track expenses closely.

HomeOfficeIf you own a small business, you undoubtedly work from home, at least on occasion. If you’re like many small business owners in today’s world, you might even work exclusively from home. Whichever category you fall under, claiming a “home office” on your taxes can be tricky. Here’s a quick step-by-step guide to make sure you’re in line with IRS standards when it comes to your home office.

Home Office for a Small Business Owner

First, to claim a home office on your taxes, both of these things must apply:

  • You use the part of your home exclusively and regularly for your business. If an auditor were to come to your home, they would be able to easily identify your home office. This means the area can’t double as a play area for children or living room for your family. It should look just like a regular office would.
  • The business part of your home must be one of these to qualify:
    • Your main place of business
    • A place where you meet or deal with clients
    • A separate structure (not attached to your home) that you use for your business

Exclusive Use Explained

Exclusive use means you use the area in your home for business purposes only. The area must meet these requirements to be considered “exclusive”:

  • A room or other separately identifiable space, but it doesn’t necessarily need to be separated by a wall or permanent partition
  • The space cannot be used for business and personal purposes
  • The area cannot contain personal-use furnishings like a TV or a couch, even though these items are common in many businesses

Regular Use Explained

Regular use means you use part of the home on a continuous, ongoing, or recurring basis. You can use the space for more than one business, and you can have more than one business location (other than your home office) for each business as well. However, if you’re deducting a home office on your taxes, your home must be the principal place of business. Factors considered in “regular use” of a home office include:

  • Meeting clients or conversing over phone, Skype, or email
  • Selling or delivering goods or services
  • Administrative activities of your business like billing customers, small business bookkeeping and accounting tasks, ordering supplies, setting up appointments, contacting customers
  • Updating your website, managing SEO, and other computer-based tasks

If you’re employed by another company and work from home, you can also claim a home office. Here’s how:

  • You must meet the home office requirements above.
  • Factors determining home office eligibility as an employee may also include:
    • The employer requires you to maintain a home office as a condition of employment.
    • Your work for their business isn’t possible without a home office.
    • The employer doesn’t provide a space for you to work outside your home office.
    • You don’t rent any part of your home to your employer and use the rented portion to perform services as an employee.

If you’re already working from home and haven’t set up a home office, now is the time. Home office deductions can save you big money on your taxes and help keep your small business activities more organized. A professional accountant knows the ins and outs of working from home and can answer your questions, save you money on taxes, and make sure you get the most out of your home office deductions.