All posts in August 2018

How To Minimize Small Business Taxes A Tax Professionals Guide

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Knowing how to minimize small business taxes means you get to keep Uncle Sams hand from picking your pocket of hard earned money at tax time. If you are not taking advantage of every available, legal, tax loophole, your business profits are being handed over to the IRS.

The following tips will help you reduce small business taxes.

It is recommended to take full advantage of ones claim on Capital Cost Allowance. If you need to buy supplies, machinery, and technology, time it for maximum savings. If doing the math shows you will minimize your tax exposure deducting the expenses this year, do not delay. Using Capital Cost Allowance on your new property, you will still increase the CCA for the current year and will have increased CCA claims for the next year.

Consider postponing disposal of depreciable resources. Do not dispose of business equipment until the following year depending on which will better reduce the tax liability for your business.

Planning income deferments can also help minimize your business tax liability. Postponing or putting off income is recommended if business profit will be higher or if the tax rates in the following tax year are expected to be reduced.
Through smart tax planning managing your expenses to meet higher profits is another strategy for further minimizing tax. Let the tax implications dictate the timing of improvements, supply purchases and equipment upgrades.

Make the most of Registered Retirement Savings Plan (RRSP) payments possible as a means of minimizing small business taxes. Contribution of up to eighteen percent in any given year of the profit, along with a Registered Retirement Savings Plan (RRSP) payment is deducted from the income. An RRSP is advantageous to be considered for tax deduction for small businesses. Additional deductions you may or may not be taking full advantage of include write-offs for start-up expenses; office costs; furnishings; advancement through education; travel expense; insurance premiums; affiliations; and conferences.

Employ members of the family. The government is particularly understanding to family-run businesses when salaries are concerned. You are not required to provide payment for federal unemployment taxes if you employ in your business your husband or wife or parents. There is no need to hold back income taxes and Social Security if siblings work in your business. However, child labour laws are still applied even if they are your children so age restrictions must be considered. As employees they must receive proper salaries and must be assured that the company is benefited in order to be eligible for these exemptions that can help dramatically reduce small business tax exposure.

Employ independent contractors so you will not have to withhold state income taxes from their salaries. As the business owner, you will not have to provide withholding payment for the employers contribution for Social Security as well as Medicare taxes. There is also no need to provide unemployment benefits for independent contractors. However, make certain that the IRS does classify the independent contractor as your employee. If they do, you will be requested to provide payment for taxes including fines levied for any missed withholdings you may or may not have been aware of. Consult your tax expert before categorizing an individual as an independent contractor to be sure you are properly doing so.

Contributing to charity can help reduce small business taxes. Donating to non-profit groups that work to help others who need assistance is a great way to reduce tax liability. In this way, you will be able to decrease the tax exposure of your business. Tax incentives are offered by the IRS for businesses and individuals who give contributions, so why not take advantage of these opportunities that are mutually beneficial by creating a tax plan of donation to your favorite charities.

Prior to making a contribution, be sure the charitable organization qualifies for the deduction you seek. The IRS also requires you to document with the organization donations of $250 or more.

No one is exempt from paying taxes; however, executing a proactive, smart business plan to reduce the business tax exposure for your business is good business. Small deductions when added up, combined with a tax aware financial plan created with an experienced accountant can help not only to minimize your business taxes but grow the future you are working so hard to create.

Useful Tips On Starting A Tent Hiring Business

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Dealing in tents can be quite a satisfying business venture. The fact that many people hold parties occasionally provides a perfect opportunity for one to set up this business and make a killing out of it. One thing that you may need to know is that dealing Marquees is not as complicated as one may have heard or been told. You may buy a whole range of tents and hire them out to the different people planning to hold functions of ceremonies. Once you have many of the tents that you think are often preferred by the people planning to hold functions, weddings, birthday ceremonies etc, you are sure to have a stable client base. They will even help you get more customers who may want to hire your range of tents for their functions.

Hiring Tents Other Than Buying

Those planning to hold functions, ceremonies or other events may also find it more convenient to hire party tents rather than buying, which may be relatively expensive. Hiring of tents may also be appropriate in supplementing the tents that the one organizing a party of function may already be having. The hired tents will simply measure up to the scarcity. For those people who are also organizing parties or functions for the first time may also find it more appropriate and comfortable to hire tents other than buying their own.

Choose Quality and Durability

So, before you start a tent hiring business, you should be certain that this is what you want to do. Check out the various online stores which offer high quality, durable, affordable and a range of tents which your clients may require now or in future. Having a collection of all sizes with varied designs is perhaps the best option since different clients have different needs.

Consult Those in the Business

You may also choose to consult any other person you may know, who has successfully been running the tent hiring business ands help you explore the options for you. You may also decide to consult different event organizers in your area on their preferences or their customers preferences when it comes to hiring tents.

Establish Rapport with Suppliers

You may realize that the tents some of your clients may choose to use at the wedding ceremony will be totally different from the ones they may choose to use at a funeral service. So, the option for you is to create a rapport with your tent supplier so that they may avail you the appropriate tents at the appropriate time for the appropriate occasion.

Cash Flows . Timing Is Everything When It Comes To Financing Business Cash Flow And Capital Management

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Working Capital is an area of business that requires solutions that revolve around timing. Timing is everything when it comes to the fundamental problem of managing and solving the cash flow conundrum!Let’s examine some of those solutions using the example of a company trying to grow… which is what it’s all about is it not?!

This is when what we could call your ‘ cash flow cycle ‘ needs to be both understood… and addressed. That’s because the concept of timing has just kicked in … your have produced your goods or provided your services and a specific amount of time has lapsed as you now generate revenues via invoicing… and wait for payment. It’s no secret that that whole cycle varies between each company and industry. But whether your cycle is 30 days or 120 days the effects of that timing require certain activities to be financed.

The timing around this cycle, as well as the solutions that your bring to bear makes or breaks your overall liquidity and solvency – aka ‘ Survival’!Example of the need to finance that cycle are should be quite clear – your firm must buy supplies or inventory, at the same time taking on payables. Wages and salaries must be covered and then you’re in the waiting game when it comes to delivery and acceptance of your goods and services, as well as final payment from your clients based on your credit terms. It’s therefore no secret to the business owner to see that using our example it can easily take those 30-120 days for a dollar to in effect flow through your company.

Again… it’s ‘ timing’!When you look at your balance sheet you see that the ratios of current assets and liabilities have also changed dramatically. You’re unfortunately less liquid and this can only be solved by financing the shortages you have carried. Of course your customer could pre pay you in advance for orders, or pay you ‘ cash on delivery ‘ but that’s not the perfect world we dream about.Financing business cash flow is all about monetizing and managing your assets.

Solutions in Canada include:

Receivable financing
Commercial bank lines of credit
Asset based lines of credit
Sale lease backs
Tax credit monetization
Purchase Order and Supply Chain financing

Utilize one or a combination of solutions to manage the ‘ patterns’ of financing that your business needs. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist your with putting together a solution that addresses the timing of cash flows and capital in your business.

Key Business Objectives Behind Using Promotional Gifts

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It is known to all that no businesses these days can do without promotional gifts. Whatever be the size of the organisation, promotional gifts is a must that needs to be employed. In this age of cut throat competition and rat race, if you want to stay and survive in the corporate scenario and aim at achieving your business aspirations, make use of promotional gifts. Use of promotional gifts has several business objectives.

Promotional gifts are distributed to clients and customers at any occasions or events or at store visits. The recipients of the gifts are very happy getting promotional gifts free without any obligation attached to it. However, the gifting gesture on the part of the companies has some objectives in mind which are popularly known as business strategies and objectives. Promotional gifts carry the business logo, company or brand name embellished on the products. As the promotional gifts are handed over to the customers and prospective clients, the brand message gets disseminated. Promotional gifts are gifted with the aim of building brand awareness, increasing brand popularity and sales. In todays age, branding is one of the key aspects of business growth. People these days are more inclined towards branded goods and services. Once your brand name and fame gets established in the corporate scenario, there is no looking back. This brand publicity is best done by promotional gifts.

Compared to the conventional modes of advertising like television or media ads and direct mail, promotional gifts have a much deeper and larger impact on customers and potential clients. Promotional gifts act as direct company representatives and the prospects also easily get convinced by the promotional gifts. Useful and practical promotional gifts are great advertising agents and with regular usage the brand name and the logo is noticed and remembered on a regular basis. The goals behind using promotional gifts are to offer a greater exposure and visibility to the brand. Only brand popularity and creating awareness cannot take a business to achieve its mission. Customer and client loyalty and establishing a strong customer-vendor relationship is a precondition to climb higher ladder of success in business. Promotional gifts are proficient in pleasing customers and motivating clients towards the brand.

No business can prosper and succeed without an army of dedicated and skilled workers. Monthly salaries and regular payments are not always sufficient to keep the employees dedicated and tied to the organisation. Promotional gifts with the brand logo and message work miraculously in keeping the company staff loyal to the company. The warm and heartfelt message on the promotional gifts makes them feel a part of the organisation and they get motivated to work better and harder. Promotional gifts are the most economical means by which businesses can satisfy their business objectives and achieve their aspirations.

Make use of useful, practical and durable promotional gifts to gift your clients, customers and employees. Log on to www.ideasbynet.com to get the best and reliable promotional gifts. Climb up the ladders of success with promotional gifts having your company logo from Ideasbynet.

Mlm Business How To Improve Your Leadership Qualities

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Do you care if your down-line network is growing in numbers? Or are they motivated?

If you are an individualistic person who only cares for yourself, you are in the wrong business. MLM members are independent and unsalaried sales people. In other words they are the company’s independent agents and they only earn their income from the sales they made.

Everyone in the network is working towards a common goal— that is to make money. To make money in the multi-level marketing business or MLM it needs members in a network to promote and sell the company’s products or services and they will be compensated with promotions and monetary gains.

Each member is directly dependent on the performance of their down-line for their success. If your down-line really is holding the reins that can make or break your business or can propel you upward in the network, then do you have the quality of a good leader that would make them work with you?

Quality No.1-Think big

A good MLM leader aims high and has big goals for himself and his down-line. If your targets are low and are easily achievable, you are not setting a high standard to follow. Besides he has to made their network popular so as to attract people to join them.

It is the job of the leader to motivate his down-line and provide them with the knowledge to recruit more members. The leader without a goal for his weekly and monthly targets will eventually fade and crumbles. Without a realistic targets, your down-line will not be motivated enough to push themselves. So as a leader you have to coach them and make sure they employ the right tactics on how to recruits.

Quality No.2-Be a guide to your down-line

Besides taking the initiative and motivating and guiding your down-line, leader has the responsibility to accompany recruits when they are out there prospecting. Other than conducting their own workshops and seminars, leader has to see that their down-line is doing it correctly too.

Quality No.3-Be results-orientated

To be a good leader, you have to lead by example. If you want your down-line to achieve a monthly $1,000 in sales, you must make sure you can top it up and sell $2,000. If you want them to get three new prospects every month, be sure that you can recruit more than three to show that you walk your talk.

Quality No.4-Be an inspiration to your down-line

Your results you have achieved will inspire them to work harder. People are motivated by successful individual who can prove to them that with hard work and the right strategies and tactics, anyone can also have the same success as you do. Sometimes you have to brag about your new sports car you have just bought or the new house in Beverly Hills you have just moved in to show them that your business opportunity works. After that, what you say gets noticed and you have just earns their respect as a leader.