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.