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FINANCE |
Make Bookkeeping Changes to Comply with New
US Tax Law |
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Few things in life are more complicated than
US congressional attempts at making things
simple. This principle holds true for the
latest tax simplification. To adhere to
newly established standards, business owners
must make some straightforward adjustments
and some less-than-clear changes. -
Businesses may no longer deduct expenditures
primarily connected to entertainment or
recreation (ballgames, theater tickets,
fishing outings).
- Manufacturing businesses no longer receive a domestic production activities
deduction.
- Enterprises with $25 million or more of gross receipts now have a limit on
deduction of interest expense to 30% of taxable income.
The good news is that businesses will also
benefit from new allowances in 2018.
Specifically, bonus depreciation of 100% is
allowed on purchases of both new and used
assets placed in service from 2018 through
2022. Additionally, the Section 179
deduction for property purchases is now
allowed for items costing up to $1 million.
When applying these deductions,
entrepreneurs would be wise to rely on the
judgment of their tax professionals for
accurate reporting.
Tax experts will certainly aid in handling the new 20% deduction of
pass-through income from business entities.
Company owners must navigate income
threshold limitations, disregard
shareholders' salaries, and weigh business
assets and wages paid-all to determine
deduction limitations. Accurate accounting
is now more crucial than ever for tax
planning. To keep up with congressional
efforts, business owners should stay in
close communication with their accounting
professional. |
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HOT BIZ TRENDS |
Make the Most of Networking Opportunities
with Some Practice |
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We all know people who are charismatic,
interesting, and fun to be around. These
individuals have a knack for making others
feel comfortable and relaxed, and always
seem to know just what to say. They seem to
have an innate gift that enables them to
make friends easily and connect effortlessly
with others.
If this doesn't come naturally to you, you aren't alone. The good news is
that with preparation and practice, you too
can be that interesting person. Here are
some tips and conversational topics that
will help you make the most of your next
meeting, social encounter, or networking
event.
Listen actively: Make eye contact and use positive body language to
show that you are listening attentively and
actually hearing what is being said to you.
It's amazing how being a good listener
equates to being a good conversationalist in
people's minds.
Do some research: Facebook, Twitter, LinkedIn, and other social
media platforms can provide a wealth of
information about people's interests and
activities. Use shared passions and
interests to strike up a conversation and
connect. You may also discover that you have
mutual friends or colleagues.
Ask, ask, ask: Most people love to talk about their jobs, their
families, their pets, their hobbies, their
vacations, and their favorite hangouts or
restaurants. With a little prompting, people
will often open up, and a rich conversation
can flow from there.
Every successful business encounter starts with a conversation that grows
into a connection - which may eventually
become a solid relationship. |
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MANAGING |
Branding Essentials: What Your Logo Says
about You |
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Your logo speaks volumes about your
business - its identity and position in the
market, and the personality of your firm.
Before you get down to the nitty-gritty of
selecting the design, think about your
target market and the essential message you
want to convey to them. Also, take time to
research the logos of other companies,
particularly those of your competitors.
Next, give careful thought to these important elements:
Colors: Colors elicit emotional responses, so you should try to
align the color(s) of your logo with the
image you want to convey. For example, blue
conveys trust, dependability, and strength;
red is a color of action, energy, and
passion; yellow suggests warmth and
optimism; green evokes nature and serenity;
purple speaks of creativity and
sophistication; pink suggests femininity and
youthfulness. It's best to stick to bold
colors and use no more than three colors in
your logo.
Typography: Typography is another important element. There are
three main types of fonts.
Serif fonts are those with little lines at the end of each stroke; they
convey a traditional or professional sense.
By comparison, sans serif fonts look clean
and modern. The third type, script, can look
creative, elegant, or casual, but script
typefaces can also be difficult to read.
Beyond these essentials, keep the following basics in mind as you develop
a logo:
- Study all design components carefully - both singularly and together.
- Use clean lines and simple shapes.
- Make sure your logo is scalable, easy to reproduce, and multifunctional.
- Compare samples of your desired logo in color and in black and white.
- Avoid anything trendy. Remember, your goal is to use this logo for many
years to come.
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FINANCE |
Simple Steps to a Simplified Financial
Forecast |
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Operating a small business is like a hike in
the woods where the trail is mostly
familiar, but sometimes referring to a
compass is key.
The entrepreneur's compass is the financial forecast. These projections
guide you in the course you want to take.
And when the path twists you in a different
direction, the forecast shows where you're
offtrack and how to get your bearings back.
Your forecasts allow you to set goals and milestones. More importantly,
they permit you to measure progress toward
your objectives. Many entrepreneurs avoid
making financial forecasts because the
process entails a lot of numbers, which seem
cumbersome to calculate. However,
forecasting can be a simple process. Use a
spreadsheet to identify a few basic factors,
with which you're probably already familiar.
These factors create your financial
forecast.
1. Resources
The top line in your financial forecast is sales revenue. But
determination of this figure requires an
initial step of identifying your available
resources. These elements are cash and time.
Cash: Assess available funds for inventory and other costs that
must be paid before you collect from
customers. The money on hand for these
things represents a curb on how much you can
sell.
Time: Your revenue is limited by the time you have to contribute to
the business. Selling more than you can
deliver individually means adding staff, and
that brings you again to a cash need.
2. Direct Costs
Once you've determined your resources, start identifying direct costs.
Begin with all direct costs, such as
inventory or materials. Labor cost is also
commonly a major direct factor in generating
sales. For solo-operated service providers,
the only direct cost is typically the
entrepreneur's time. The key dynamics are
how much output the individual can
accomplish every month and the amount of
personal income desired for the effort. This
owner compensation target is the major
direct cost in many basic business models.
3. Sales Revenue
When your direct costs are identified, sales revenue is projected as a
multiple of those expenditures. All you need
is your ratio of direct costs to sales
revenue. This may be calculated using
historical data. Or you might simply
identify a markup you aim to achieve. For
example, you might have prices that are
twice your direct costs - yielding a ratio of
0.5, or 50%.
Divide your forecasted costs by the ratio. The product is your sales
revenue forecast. Subtracting direct costs
from sales revenue results in an amount for
gross profit.
4. Overhead Expenses
Every business has general overhead expenses. Even the solo entrepreneur
working from home must at least cover the
cost of internet and cell phone use. Larger
organizations of course incur expenses for
rent and office administration. Don't forget
costs for advertising and marketing, even if
that's only website development and
maintenance. Subtract these expenses from
your gross profit to obtain net profit.
Over time, update your financial forecast. Poor results will necessitate
cutting overhead and capital expenditures.
On the flip side, beating expectations gives
you extra funds for expansion. |
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Gold Gerstein Group
505 Pleasant Valley Avenue
Moorestown NJ 08057
856-727-0100 Office
856-727-0772 Fax |
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www.g3cpa.com |
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info@g3cpa.com
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How to Win Big in Today's Economy |
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The altered economic landscape presents innovative and nimble businesses
with opportunities to thrive. |
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Find out how by requesting my free report
"How to Win Big in Today's Economy" by
replying to this email. |
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Just reply to this email and I'll send it right out to you. |
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Quick Quiz |
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Each month I'll give you a new question.
Just reply to this email for the answer.
What name is given to the popular holiday area
between Marseille and La Spezia? |
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Worth Reading |
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Science Has Some Suggestions for Making Meetings Productive
By John Rampton-Chan |
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Entrepreneur
We've all been to the company meetings that drag on for too long and feel like a waste of time. But your meetings don't have to feel like a chore that your colleagues dread attending. Scientific research has pinpointed five actions you can do right now to boost efficiency, increase productivity, and make your important meetings matter to your team. Learn the five steps here.
Want to Be a Better Leader? Stop Giving Orders and Do This Instead
By John Eades
Inc.com
You might be surprised to learn that "command and control" is not the most effective leadership style for today's workplace environment. Instead, the most successful leaders are those who inspire, empower, and serve their team. One way to do these things is to connect with your team on a human level and focus on helping each person reach his or her highest potential.
How to Know Whether That Business Book Is Worth Your Time
By Will Hoekenga
Medium
There's a reason you shouldn't judge a book
by its cover. Too often we find a book with an attention-grabbing title and
glowing testimonials, and we think, "This holds the key to my success." But
just as often, we learn that the book is full of fluff. So how do you filter
out the books that are actually worth reading from the books that should
have just been a blog post? These six techniques will show you.
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LINKS YOU CAN USE Giving and Receiving
Feedback |
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For many, the word feedback evokes feelings of fear and dread. No one enjoys receiving negative feedback, and few enjoy dishing it out. Even positive feedback can be challenging to give or receive. To enjoy business success, it's important to overcome these hurdles. Use the following guides to become a feedback aficionado:
Studies have shown that being a great leader means being
great at feedback. Learn the secrets here:
Being A Great Leader Means Giving And Receiving Feedback
Negative feedback can be discouraging - or motivating.
Discover how:
To Stay Motivated, Seek Positive and Negative Feedback
Want to give productive feedback? Use these five tips:
5 Steps for Giving Productive Feedback
Want to receive feedback effectively? Use these five
tips:
How to Receive Feedback Effectively
Feedback should make your workplace more productive and
pleasant. Here's how:
Giving Feedback Boosting Your People's Confidence and
Ability
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