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Payroll

One of the toughest deadlines of all, making payroll, is essential to keeping employees happy. Making payroll tax deposits on time is even more crucial. You’ll save the following in penalties by staying on time with payroll deadlines:

• If you’re 1-5 days late with payroll tax deposits, the penalty is two percent of the payroll.
• If you’re 6-15 days late, you’ll pay five percent in penalties.
• If you’re more than 15 days late, the penalty goes up to 10 percent.

And that’s just the federal penalties, not your state penalties.

Income Taxes

Everyone knows about the April 15^th deadline to file your taxes. Some people file an extension and have until October 15^th. However, we need to remember that the best estimate of your tax liability needs to be paid by April 15^th even if an extension is granted. Failure to correctly estimate and pay income taxes leads to a penalty that is calculated by multiplying the number of days the tax is late by the effective interest rate.

Paying Vendors

If we’re slow to make our accounts payable payments, our vendors may tack on a penalty, but the larger consequence is the effect on our credit score.

Business Goals

It’s so easy to let internal deadlines slide, but they may be the most important of them all. To move your business forward, set goals with deadlines so that you can measure your results.

Mastering Deadlines

Here are a couple of tips to master your deadlines so you can avoid the above consequences:

1. Keep a list of deadlines, or hire someone to help you with them.
2. Make a mental commitment to yourself that the deadline is important to your business.
3. Set aside the time you need to prepare for the deadline.  Block time on your calendar and stick to it.
4. Remind yourself of the consequences of missing the deadline.
5. Try not to overcommit. Delegate other tasks when possible.
6. If possible, automate or systematize the processes around the deadline so that it’s met automatically.
7. Stay up late if you have to in order to meet your deadline.
8. Celebrate when you meet your deadline!

If you need assistance keeping up with your businesses tax deadlines reach out to our team and let us help you!

Flex Work Hours

Everyone likes regaining control over their workday, and offering flex hours can be one of the lowest cost policies to implement. Flex hours support work-life balance and are especially important for employees who have school-age children who can plan work around their children’s day.

Wellness Initiatives

Large companies are able to offer a wellness program, but small companies can take small steps to reach the same result. Find a local gym to partner with for a membership discount.  Bring in the occasional yoga teacher. Or hire a nutritionist to speak once a quarter to your employees. All of these small initiatives demonstrate to your employees that you honor a culture of wellness.

Maternity and Adoptive Leave

Do you have a policy about time off for new parents? And more importantly, you’ll need a process to re-integrate the employees into the business when they return.

Child Care Support

Even if you can’t afford to provide onsite child care, you might be able to partner with a local child care facility to provide reduced or subsidized rates.

 Gender Hiring Goals and Metrics

Do you have an equal number of men and women in your workplace? If not, do you have goals in place to adjust the ratios when possible? If you have a disproportionate number of one gender making all of the hiring decisions, you may want to consider the effects of implicit bias on your hiring processes.

Mentoring

One way to speed the growth of employees is to provide mentoring. All employees will benefit from strong role models.

Opportunities for Promotion

Both men and women will perform better when there is a clear path to promotion as well as leaders in current positions who demonstrate leadership.

Dress for your Day

One of employees’ favorite perks is to be able to dress casually when no customer meetings are scheduled.

Paid Time Off

Paid time off, which used to be called sick pay, is a favorite. But now, with most employers, you don’t necessarily have to be sick or explain your reason for wanting to take a personal day from work.

Gender-neutral Company Events

Many companies create events for employees and sometimes customers to enjoy and mingle. This can include the company Christmas party, lunches, and happy hours. It can also include sports events such as golfing and attending baseball games. For every traditionally male event, be sure to plan a traditionally female event to keep the options gender equal. Spa day, anyone?

These benefits are a great start to attracting top talent, boosting employee morale, and maintaining a happier workforce in your business.

Upsell current clients

Offer steady customers a product or service with more features than they usually purchase. Examples include moving a client from coach to first class, from a budget vacation to a luxury one, from a standard model car to a luxury version, from an off-the-rack suit to a designer suit, from the standard service to an all-you-can-eat version, and from a regular meal to a super-sized one.

Some customers simply need to be given permission to splurge on themselves, so why not by you? Others have outgrown the standard package but find it hard to break routine. With a gentle nudge from you, a percentage of your clients will purchase the upgrade, therefore boosting your overall sales.

Cross-sell current customers

Restaurants practice this the most, asking us if we want appetizers, dessert, or fries with our entrée, and you can apply this to your business too. If you offer two services and a client is only participating in one service, make sure they know about the other service you offer. Find out if the client has a need for the other two services.

This is called cross-selling, where you offer a current customer a service or product that they don’t already purchase from you. For example, an attorney that does trademark work for clients might also let clients know that they do wills, too. A pool builder who also offers maintenance service will want to follow up with the new pool owner once the pool is built. A real estate agent who also manages properties will want to let rental property investors know about this service.

Raise prices on current customers

If your costs have gone up but your prices have remained the same, you’ve accidentally given yourself a pay cut. No one wants that, so raising prices is an option that will restore your profit margin.

If it’s been a while since you’ve raised prices, it might be time to make an adjustment. Review your services/products price list and determine what you need to do to bring the numbers back in balance. Let us know if we can help with some profit margin or breakeven calculations to help you make this decision.

Raising prices requires careful consideration and timing. Customers expect periodic price adjustments, so don’t let fear hold you back from making a solid business decision here.

All three of these strategies will help to raise your revenue per customer and boost your revenue without much additional. Try these strategies so you can enjoy a more prosperous 2018.

1. Have patience.

Practicing patience will go a long way when you’re dealing with taxes. Keep in mind that for tax professionals, the months of January through April are as crowded and hectic as a shopping mall in December. Parking is scarce, the sales clerks are doing the best they can, and customers are all trying to shop for presents, party items, and decorations in a very compressed time period.

Be patient with yourself as well. You have the skills to manage your business and do well at your career, but it may not be at organizing paperwork or dealing with numbers. That’s where we can help.

2. The tax stack.

Set aside a permanent place on your desk to be the tax stack. When you receive something in the mail that is tax-related, place it in the tax stack. You’ll save valuable time later not having to look for documents you need.

Similarly, create a folder on your computer for tax items. Under Documents, create a folder called Taxes. Within that folder, create a folder for the tax year, such as 2017 for the year just ended. Move all of your tax-related computer documents into that file.

At your leisure, scan in or take a cell phone picture of the paper documents in the tax stack and place the digital file in the Tax folder. Now you’ll have everything in one place and you’ll be so organized that your tax accountant will be surprised!

3. Catch up.

If your books or records are behind for 2017, get them caught up now to beat the rush. If you wait until the first week of April, you’ll probably need to file an extension. Keep in mind that an extension only grants a paperwork extension; it doesn’t delay any tax payments that are due. If you wait too late, you’ll have the stress of waiting until the last minute, the stress of paying estimated taxes, and the stress of waiting until your return is finally filed.

4. Early bird.

Connect with us or your tax professional early to agree on what services will be offered and to get your documents turned in as soon as you receive them. Getting your things in early will mean less waiting time for preparation and filing. Wouldn’t it be great to be able to say that you’re done with your taxes in February? Your stress will be less, and your energy can be redirected to new projects.

5. Avoid a large tax payment.

The worst thing about tax time might just be writing a big check, possibly with penalties, to the government in April. Instead, plan ahead and spread out your payments for next year by adjusting your payroll withholding or making quarterly estimated tax payments. Spreading your tax payment throughout the year will have you writing a smaller check, if any, in April.

Tax Time

Try these five tips for tax time, and you’ll have more energy for other, more important things in your business. If you need assistance with your taxes reach out to us at P.T. Anderson Accounting.