Beware of a New Scam

There's a new scam out there. One of my clients just forwarded me an email that he received titled "Notice of Unreported Income". This email claimed to come from the IRS. When you click on the link it directs you to a page that looks like one of the IRS web pages. The clue to me that it was a scam was the executable (.exe) file that it wanted the recipient to click on to "view their tax statement" when in actuality it would be downloading a virus onto their computer. Fortunately I did not click on that link, but according to the IRS official website, this email scam has been circulating in large numbers. Please note that the IRS never sends unsolicited emails to individuals about their tax accounts. If you receive one of these emails you can forward it to the IRS at phishing@irs.gov

Here's the link for what the IRS had to say about this new scam:
http://www.irs.gov/newsroom/article/0,,id=213862,00.html?portlet=6

Avoid Employee Theft

I cannot tell you how many times I come across a client who has made their business vulnerable to employee theft. This can happen when a business gives a company credit card to employees to run errands like Office Depot, a hardware store, as well as business travel including bridge tolls and parking, without receipts being properly submitted back to the employer. These go unrecorded for a while and then the business owner forgets what the transaction was specifically for and cannot locate the original receipt. Although most employers trust that their employees would never steal from them…it happens. You can reduce your chances of employee theft by implementing an expense reimbursement plan. First the employee makes the original purchase. Then the receipts would have to be submitted through an expense reimbursement form, coded properly into your accounting system and approved by the business owner in order to be reimbursed. You will then have accurate records of expenses including receipts (especially if you were ever audited) and you also limit the chances of possible employee theft.

Misleading Solicitations Aimed at LLCs

There is a new scam going around aimed towards LLC's. Several of my clients have already received a letter that appears similar to the Secretary of State Statement of Information form. It's a bogus "Statement of Information" for LLC's that says that you need to pay them $239 within a short period of time or that you will be charged a late fee of $250. They call themselves "Business Filings Division". Hopefully you have not received this misleading solicitation letter (or paid it). I've included a link below from the Secretary of State regarding this scam.

http://www.sos.ca.gov/business/be/alert-misleading-solicitations.htm

Customer Service or Dis-service?

Just this past week I’ve experienced two separate situations where service businesses lost out on a willing-to-pay customer because of lack of good customer service. For example, I am on the Board of a homeowners association and we have a concrete step that has become dangerously loose. So we’ve marked the steps with signs as a warning. In the meantime, I contacted a company to replace the step. They told me that they did not have the correct step in their warehouse and would need to order it. I then was told that it would be installed on Wednesday. Well Wednesday came and went and no contractor. I called and left a message…no answer. I tried to follow up the next day and still no answer. I called on Friday morning, left a message asking for them to call and give me an update. I’m a reasonable person, if there was a delay in shipment, all they had to do was let me know. Now it’s Saturday and I still have not heard back. Here we were willing and able to pay for the service and there was no follow through on the side of the contractor. They just lost a good customer who would have paid that same day services were performed. My other experience was with an insurance guy. We spoke and he told me to email all of the information he needed in order to give me a quote that he swore would be cheaper than my current policy. I took the time to look at my policies and include all of the detail that he needed. I used the email address he gave me so I know it was the correct one. Here it is a week later and I have yet to receive an email or follow up call. Both of these recent experiences made me realize just how important it is, especially for a small business owner trying to make it in this economy, to really make yourself stand out by communicating with your clients. Providing good service to your clients is essential to having a successful business, especially if you are a home based business. Currently I have over 30 clients, but I make sure to treat each one as though they were my only one. Good customer service has become a rarity these days, not to mention great customer service. It includes simple things such as responding to a telephone message or email, remembering their first name and keeping your client updated about the progress of a job. Hey I’ve been caught up with a project that pushes me a little behind schedule, but I always communicate with my clients and keep them posted. This way they feel in the loop. Put yourself in their place and think: What would make this experience feel like I really got what I paid for? What would make me feel like I really matter to them as a client and not just a checkbook? For instance there is a sandwich shop that is about 10 miles out of the way for me. I have gone there for years. The owner knows me by my name and greets me each time. Other than fact that the chicken salad sandwiches there are unbelievably delicious, I feel like I am welcome at his shop. He seems to enjoy seeing me and I enjoy eating his food. Long story short is: Make your Client or Customer feel like they matter, communicate with them, be honest if there are any hiccups during a job and just show some common courtesy in your business and you will build a loyal client base of people who appreciate the service that you provide.

Be Happier at work

Does you day at work sometimes go like this...
(Video from Youtube, www.stationeryisbad.com)



Sometimes you have to LOOK for the good in your job. I found an interesting article on the CNN Money page...we all sometimes need some positive reinforcement.
http://money.cnn.com/2009/08/03/news/economy/happy.fortune/index.htm

Working from Home

Having a home office, and being able to work from home exclusively is a dream come true for most people. The idea is great, but successfully executing it can be difficult. Add in a family and small children, now you have a real challenge. There are ways to make it successful. We have young children that have learned the various signals that "mommy is on an important call, everyone needs to be quiet.” This article from the SF Chronicle is something that we can identify with completely. If you are planning a move from the office to home or starting up a home business, I recommend you take a peek at this article -
http://allbusiness.sfgate.com/specialty-businesses/home-based-business/11123

AAA Membership - Great Deal

I've never held a AAA membership card - mainly because I never had car trouble. That changed recently when my car battery died and I had to use my mother-in-law's card to get to the dealership for repair. So about 6 months ago I went ahead and signed up for $49. What I didn't realize was how useful it was to use the card for purchases. Just recently the family flew to Disneyland and stayed for 5 days at the Disneyland hotel. Upon booking our stay we used the card and received about $250 off our hotel bill. Not only that but restaurants (like Minnie's Cafe) took AAA, saving 10% off the bill. Within less than a week we saved over $300 dollars just by asking "do you take AAA?" Spending only $49 to sign up has really paid off for us. Out of all the discount cards available this one is still the best. Check them out:
http://www.csaa.com/

Update: Just saved $9 off admission to California Academy of Science (SF, California). Used that saved money to buy french fries and a soda.... ouch. But, thats another thing to write about.

Twitter - It's like the new Ebay...

…well not really. You wont find someone selling their complete collection of 1970’s Pez dispensers or a grilled cheese sandwich with someone’s face burned into the bread. But what you will find are some very intriguing offers. Sometimes they seem to good to be true. Take for instance a few weeks ago, I had been following Jet Blue and they tweeted an incredible offer for $9 flights (one way) out of select airports. Have you ever heard of an airplane ticket for $9?? I am used to the Southwest offer during the summers that are for about $29 each way but, $9?! That got my attention. If I was planning a trip or had some vacation time available, I would have been all over it. I wish that offer was running in June when we took a family trip to Disneyland - I will make sure to check here again before buying my tickets. ING had a promotion the other day that just asked you use your Internet enabled phone to search for ATMs in your area. Then you needed to just Tweet how many ATMs were in your zipcode area. The promo was limited to 24 hours. After that they would choose randomly a winner for a new iPhone/Blackberry. When I entered the promo it was only a few hours old and there were only about 200 entrants. I’m hoping to win. Whether or not Twitter sticks around for the long haul I don’t know, but I have a feeling it will. If you’re on Twitter, you can look me up – my user name is ambkkpg.

Medical Bills; Get buried by them or get the deduction!

Small business owners already pay large sums of money just to have medical coverage for themselves and their families. Then comes the inevitable doctor visits, hospital stays and emergency dental work. Unplanned medical bills - they can come on fast and are unforgiving. One often overlooked solution is to hire your spouse as an employee. You can then offer health insurance to your “employee” that covers them and their family (by extension…you). With this setup you can qualify for small business group insurance (the owner plus one employee often qualifies you for this type of coverage which is usually cheaper than individual family coverage). Most small group plans won’t subject you and your employee to any physical exams either. You can also set up a medical reimbursement plan, which reimburses your employee for any out-of-pocket medical expenses paid by their family (by extension…you) such as copays, prescriptions and some over the counter treatments. The medical reimbursement paid out to your ‘employee’ is also a deduction for the business. Most individuals filing jointly never reach over 7.5% of their adjusted gross income in order to deduct their medical expenses so by structuring your small business this way, it can be a win-win situation. It’s almost like the money never left your bank account. As with all financial decisions, you should always consult your CPA (certified public accountant) who prepares your tax returns prior to making any business changes.

New Business Start Up Expenses

Don't lose out on start up expenses! If you are a new business, be sure to enter any receipts that occurred prior to the opening of your business as part of your start up costs. Many small businesses start their Quickbooks file with the opening balance of their business checking account, but they lose out on some of the expenses that they paid out of their personal account. If this applies to you, then you can enter the receipts in the Owners Investment Equity account register. You can code each transaction to Start-Up Costs (an asset account - you may need to create) since these were costs before you opened your business. Then when its tax time, your CPA/tax preparer will be able to factor that in to the preparation of your business tax return since start up costs will be depreciated or amortized over a period of time as outlined by tax laws.

Check your bank statements for hidden fees...

Word of advice: If you have an account that is supposed to have no fees, always scan your bank statement just in case. Often times fees find their way onto your statements. For several of my clients, catching these bank 'errors' have added up to hundreds of dollars. If you check your statement and you spot a fee, no worries, just call your local branch (or rep if you have one) and request that the charges be removed. In my experience they usually do it pretty fast. And now a days who couldn't use an extra $25-30 bucks?

Personal Budgeting

I've just updated my budget. If you don't have one you really should. If you know how to work in Excel, it's even better. Over the years, my budget has become more intricate, but having a basic one can be a great help in organizing your finances. You can start by entering all of your current sources of monthly income. I use the net take-home pay amounts since that's the money "goes into your pocket". Subtotal your revenue. Then make a list of your monthly expenses. I separate mine by fixed monthly expenses (such as mortgage and car payments) and variable expenses (such as utility bills, phone, cable, etc. I also have a section for food, household expenses and gasoline. Subtotal your expenses. Then take your total monthly income and subtract your total expenses. If you are in the red, don't come down on yourself too hard. Knowledge is the first step in making changes. Feel free to post any of your budget making tips, challenges or experiences. For more help with budgeting feel free to email me at admin@ambookkeeping.net

Lunar Lander game (Arcade Classic)

Since this week is all about the 40th anniversary of the landing on the moon. I thought that I would share my fondest memory of the landing. Actually I wasn't born till after 1969. But my earlest memory is the 1980's ATARI arcade game Lunar Lander.

Click here to launch your Lander

Update on my Grocery Game Experience

Well I'm about a week into my grocery game trial membership and here are some thoughts on it:

1. If I follow my local Sunday paper circulars/advertisments and match them along with my coupons (including ones I search for online) I can find the same or very similar deals. I wasn't too impressed with the most recent Safeway list I received either.

2. The upside of the Grocery Game website is that you can find coupons there that are ordinarily hard to find online.

I'm not so sure if I'm going to continue my membership - I've been thinking about canceling before the free trial expires. I'll keep you posted.

Benefits of outsourcing your bookkeeping needs…

·No Overhead
·No employee payroll taxes or benefits paid by your company
·Great potential for increased tax savings when your accounting records are accurate (plus you save money when it’s done right the first time)
·Your CPA is happy to receive your tax paperwork accurate and organized
·Less stress on you at tax time!
·Easier cash flow management for your company = improve profits
·More time for you to generate profits for the business instead of working on paperwork

Tired of using spreadsheets?

Visit our website to take advantage of Quickbooks 2009 Pro special promotion. A single user license is 20% off and will be sent with FREE shipping.
www.ambookkeeping.net

1st Time Playing the Grocery Game...

Well today was my first time playing the Grocery Game (from my free trial - see previous post). I used "Teri's List" and headed over to CVS. I saved $15.38 on a bill that would've been $37.50!! Plus I received an Extra Care coupon for $4 off my next $20 purchase. Not too bad on my first try at it. If you're interested the free trial is still going on. It's worth it to read the 'game rules' before you go out shopping. Check it out at www.thegrocerygame.com

I'll keep you posted on my new-found shopping skills.

If there is a thing called extreme couponing, then this is it -

I just signed up for a four week trial. Keep you posted...

My Financial tip of the day -

You know those calorie counters? Create a cash counter for the day. Give yourself a reasonable limit. Then watch your waistline grow with all the extra cash in you pocket.

Bookkeeping Services

We provide off-site and virtual bookkeeping services to small to medium sized businesses, non-profits and individuals. No project is too small. Just send an email to admin@ambookkeeping.net and tell us about your bookkeeping needs.

Watch out for your credit score

I have an American Express business card. Recently they lowered my credit limit within $100 to my total balance on the card. My balance was was not even 25% of my total available credit. I never was late with my payments and always paid at least a little above the minimum payment and sometimes more. Of course my first reaction was panic that it would impact my credit score which is between 750 & 780. I asked to appeal this decision and they basically laughed in my face. When I recently went to do a balance transfer on another credit card of mine, I was declined even though I had the available credit to use because they said within the past few months something happened to lower my credit score to the 720s (which is still supposed to be good, right?) I'm so fed up with credit cards over this.