Small Business Tips and Ideas - BizSieve.com

3 Ways Taxes Could Change for Small Businesses in 2013

The big problem for small businesses planning for tax changes in 2013 is that almost everyone doesn’t really know what will happen until January 2013. Congress and the President struck a budget deal in 2012 that essentially imposed spending cuts and tax hikes that take effect in 2013 if they can’t come to a better deal legislatively. In addition, the tax cuts from President George W. Bush also expire in January. So for many, if nothing is done, 2013 represents a major set of tax changes, including impacts on small businesses.

Sole Proprietors and Schedule C

Many micro-businesses and small businesses are owned by one person and the related taxes are declared as a Schedule C business on the owner’s personal income tax returns. That in turn causes the businesses net taxable income to become part of the owner’s personal, taxable income.

The Bush era tax cuts, mentioned above, were time-limited, but they created significant savings for personal tax return filers. This included lower tax brackets on personal income as well adjustments of the alternative minimum tax to avoid its dreaded hit on the average income earner. So just by doing nothing, Congress and the President in 2013 can essentially allow a tax increase on personal income, jumping from 35% to 39.6% on income earners over $200,000 and $250,000 if married. For those owning a business, it’s very likely that they would be hit by this tax increase, especially given the partisan positions in Washington D.C. at the end of 2012.

Foreign Account Impacts

Given the flexibility of the Internet, many small businesses are doing and earning from business overseas. For some, such business activity can involve using and working with foreign financial institutions and setting up bank accounts overseas. 2013 will authorize a 2014 implementation of new tax rules on deposits made, transferring funds out of the U.S. Funds transferred will be subject to a painful withholding amount of 30% unless involved businesses provide all the required tax identification information and location of overseas accounts on tax returns. This allows the IRS to collect all applicable taxes on income earned by U.S. taxpayers, even if earned overseas.

Deduction Changes

Many small businesses take advantage of Section 179 asset deductions, which essentially allow a business to write off certain asset purchases in total in one tax year rather than depreciating the cost over five years or longer. The limit on this deduction option is $139,000. However, in 2013 this powerful and useful small business tax savings will be serious limited. First off, computer software won’t be an allowable asset expense anymore. Second, the maximum allowable deduction of Section 179 assets will be capped at a far lower amount of $25,000. For any small business relying on these deductions to purchase valuable equipment, tools, assets and more, this change represents a serious loss on tax returns. As a result, if there is anything to buy for a business, many small companies should be making those purchases in 2012 before the end of the year.

In Summary

Many will advise businesses should continue to make their decisions as needed, regardless of tax rule changes. If a business’ profit margin is so thin that the above tax changes create losses, that business needs to change how it pursues revenues and sales quickly or it will be facing bankruptcy fairly soon. That said, the above changes will reduce profit margins regardless, hitting small businesses in their own unique way. So here’s hoping Congress actually tries to get along for a change before January 2013; everybody’s taxes depend on it.

Walt Douglas is a corporate accountant and guest author at Best Accounting Schools, a site with guides and resources to help prospective students review top-rated online accounting degree programs.

Using Kiosks to Develop Small Business

Kiosks have been around since 1977. Since then, kiosks haven been used globally for interactive photos and internet portals. You’ve seen how the kiosk helps larger businesses. Airlines, grocery stores, and other retailers use them to help cut down on employee costs and processing times for customers. The companies spend less and customers save time. It’s a win-win situation. You may have thought that kiosks are meant for big businesses with a large clientele, but kiosks can be just as helpful for small businesses. You don’t need a high-volume flow in order to take advantage of the kiosk’s many perks. Here are several ways that small businesses benefit from kiosks.

1. 24-hour services without employees

If you wish you could provide services for more hours of the day, consider the kiosk as a way to meet customer needs for longer hours and your need to cut back on employee hours. A kiosk could be used to help customers with making orders or payments without any human help.

2. Vending works just fine

If your company sells standardized products, consider a vending machine. If you’ve seen iPhones sold in kiosks at the airport, you’ve seen that even high-priced items can have their place in a vending machine.

3. Be in two places at once

If you’re on the brink of opening a second location but just can’t quite meet the budget requirements, you may consider setting up a kiosk instead. A kiosk could open up a clientele demographic by being available in an area that’s not close to your original location. Even if you sell larger items, you can still take mail or delivery orders through the kiosk. You cut back on rent, employee, and insurance costs.

4. Address routine procedure needs

If customers need to consistently manage their accounts, kiosks can address those needs and make your services more convenient than the competition’s services.

5. Share advice with clients

You don’t have to train your employees to have a Ph.D. in your product. Instead, invest in a kiosk that can be set up in your store. For example, multiple U.S. wine stores use wine advice kiosks to inform customers on wine purchases. Customers are able to scan a bar code from wine bottles that reveal the details of the wine — food pairings, seasonal information, and background can be accessed. You can even cross-sell other products, which makes it possible to cross advertise with other businesses. Especially if you have several product choices, a kiosk can help consumers feel confident in their selections.

6. Job applications

If you have too much on your plate with customers, partners, and you have limited employee help, you can use the kiosk as a built-in HR department. The kiosk can take job applications and help to keep records.

7. Receptionist replacement

Just look at how many grocery store customers prefer the self-service check-out lines. People are less and less interested in dealing with a human face. Humanists may take this personally, but technology marches on. If you could provide the services of a receptionist without the price of receptionist’s salary, you could save a lot of money. Since customers are more and more comfortable with computers, this is a real possibility.

Today’s economy invites small businesses to get innovative and it rewards innovation. Think outside the box by getting your own box. The kiosk system is just getting tapped into and you could be the next beneficiary of technology’s benefits.

About the Author: Haley Brown writes for several business sites. Check out Phoenixkiosk website to get information on desktop kiosks for your business.

Why You Should Consider Hiring Freelancers for Your Small Business

Small businesses often tend to be one-person operations as entrepreneurs try to take on all the responsibilities in order to save as much money as possible. Employees are often limited to family and close friends or just an extra hand or two to help out.

However, small businesses can benefit greatly from hiring on employees, who can help their operations grow more quickly. For small businesses on a budget — which is most of them — freelancers can fill this role for less cost. Here are just a few of the reasons why you should consider hiring freelancers for your small business:

hire us
Image by Dita Margarita

Experience for Less

With a freelancer, you pay by the hour or by the project, allowing you to spend far less for the same experience you would get in a much more expensive employee. You would have to pay a high salary to get the same level of experience in an employee. By hiring a freelancer, you can get the skill and experience your company needs for less.

Not Responsible for Benefits

Salary is only one part of the expense of employees. Typically, you would also need to pay for benefits such as a portion of health insurance premiums, a contribution towards a 401(k) or other retirement account, and paid time off. You would also be responsible for paying a portion of the employee’s taxes. When you hire a freelancer, you don’t have to pay for any of these items — which can nearly double the cost of an employee’s pay package in some cases.

Pay Only for Results

When you hire a full-time employee, you may end up paying for a certain amount of clock watching. With a freelancer, you only pay for results. Even if a freelancer charges you by the hour, you pay by the job, so you can more easily calculate whether the hours reported for the job seem reasonable. However, most often, you will pay a flat fee for the project, so you won’t have to worry about how many hours were put into the job.

Little Risk

Freelancers work on a contract basis. That means that you aren’t bound by a contract and you don’t have any obligation to the freelancer, other than to pay for the job. That means that there is less risk. If you have a problem with an employee, you may have to go through a drawn-out process of filing reports and attempting mediation before you can finally fire the person. In the process, you will lose money and productivity. You don’t face that risk with a freelancer. If you are dissatisfied with a freelancer’s work, you just don’t hire that person again.

Freelance workers offer small businesses all the benefits of full-time employees without the same risk and without costing as much in salary and benefits. If your small business is not already using freelancers, it’s time you look into hiring them to help your business grow.

Do you work with freelancers for your small business? Share your tips for success in the comments!

About the Author: Sarah Clare is a writer and oversees the site projectmanagementsoftware.com, where she has recently been researching project manager software. In her spare time, Sarah enjoys cooking and scrapbooking.

Building a Wireless Internet Connection for Your Small Business

Your business is already expanding these days. Although you started out with only a few people that have been working at home, now you have a few teams that share an office space with. In order to have these employees connected, you could opt to spend thousands in hiring a construction and IT consultant crew to have Ethernet cables strung throughout floorboards and ceilings. A less expensive way however is setting up a wireless network that is simple and allows you to use inexpensive equipment as well. As an added bonus, your employees will be able to share files, printers and Internet connectivity without having to be chained to each other.

One of the first things that an office requires is having an Internet connection. For those interested in this, you will have to do your own research and find out what the service providers can do for you. This can include their various plan options.

wireless internet
Image by John Taylor

There are also cases wherein people are only stuck to going for a single provider available in their area. While those in others, they may be able to choose from DSL, fiber optic, T1 and cable Internet providers. The T1 lines will typically give users a better upload and download speed but the technology that has been chosen will actually depend on the bandwidth guaranteed by the service provider.

You should purchase a bandwidth length from a reliable business internet provider based on the job functions of your employee as well as their habits at work. Business owners should allocate at least 100 Kbps for each user. If you have 30 users in your company, that would amount to 3Mbps downloads. But if you have workers who are doing a lot of their work within the cloud or are sending in large files, you will have to ensure that their upload speeds are equally close to the download speed. The T1 lines usually offer upload speeds that are good but are more expensive than DSL or cable Internet.

When it comes to selecting a router, choose one that utilizes 802.11n technology in order to make the most out of maximum range and speed as well as having a built-in firewall. It will also support WPA encryption at the least. Aside from that, you should make sure that the router will allow enough virtual private network connections so that the employees will be able to access their resources in the network while they are traveling. One of the most affordable choices for small businesses is that of the Cisco RV 120W, having 802.11n, SP1 firewall and can support up to 10 VPN connections simultaneously.

You should also never forgo leaving your wireless network unsecured as the hackers or neighbors can steal your bandwidth connection and utilize your sensitive data. You should avoid going for WEP encryption that is outdated, as this is just as similar to having no security at all. Since it will be easier to modify, people who will have WEP encryption can easily break through it if they so wish. One can find programs out there that can do this that is why you should not forgo this temptation.

About the Author: Find out what broadband packages are available in your area and compare speeds and pricing on Broadband Expert.

Help Desk Support for Enhancing Your Businesses Reputation

The manner in which the receptionist of a company answers phone calls can display an image of the business to the customer. It is important for every company to ensure that their calls are handled by personnel who are fluent in a particular language, and who also sound nice and clear.

If there is information that you do not have immediate access to and want to put your caller on hold, you must take permission from him/her before doing so. Also, if you think that you will need some time to get back to them, it is better to tell them that you will call them back later as you’re unable to help them out right away. Your callers will appreciate this rather than being put on hold for a while.

help desk
Image by Matt Hutchinson

You must use a pleasant tone at all times while answering phone calls and make sure that your language is clean. Do not use slang words and never interrupt the person when he/she is speaking. Wait for them to stop, and only then start talking. You must also be precise and not waste the caller’s time with topics that do not concern them. Arguing with a customer over the phone is not advised, regardless of how they may speak.

The rules on providing telephone service to customers are not followed by everyone. The receptionist or help desk agent you have hired for your company may not have the best training and guidance on how to follow these rules. Taking time and money out of your business to train a reliable staff may get wasted sometimes. In order to avoid all the hassle and worry, you can hire the services of a Help Desk/Contact Centre to handle all your business phone calls. With this service, you can provide efficient telephone service to your customers. You can also increase the customer satisfaction rate of your company as most of the customers can get their issues resolved in just one phone call.

When customers call a business for any service or questions, they want to speak with someone who knows their importance. Help Desk/Contact Centre professionals are trained to do exactly that. One customer can be provided with one point of contact, which makes the service more personalized and efficient.

If customers know that they are given a priority in your business, they always want to do more for you. They can develop loyalty to your company and appreciate the value you have towards them. This service can significantly increase your customer satisfaction and retention rate. The personnel who work with these service providers have excellent communication skills and etiquette that can help in building the repute of your organization.

About the Author: Penny is associated with Answerplus.ca which provides Help Desk/Contact Centre and other services.