5 Quick Tips to Build Better Work Relationships

One of my favorite blogs, TheGlassHammer.com posted this great article yesterday with advice on building better work relationships, contributed by CEO Coach Henna Inam.

From TheGlassHammer.com:

1. Clarify Your Objective. What’s your goal? The goal here is to simply build a more trusting relationship with the other person. Once the mutual trust is established, it is more possible to work on the areas where you want to influence the person.

2. What’s the best way to approach them? The bad news is that they are probably not oblivious to the fact that you are not on great terms. So just be honest. Ask them to see if they would have lunch with you as you’d like to get to know them better.

3. What If They Say No? They may be a bit suspicious. After all, everyone wants to have lunch with friends. And it may be just the excuse you may be looking for to retreat back to your office cave to nurse the ego. But you can prevail. Persist. Ask if there is a better time to connect, perhaps for coffee.

Read more here

10 Companies Running Out of American Customers

As technology evolves and Americans shopping attitudes change, these 10 companies are running out of customers in the US.

From Huffington Post.com:

Best Buy

December same-store sales for the consumer electronics company fell 4%. For the same period, sales at Best Buy stores open for at least 14 months declined 5% in the United States as competing retailers offered deeper discounts. Profits for Best Buy (NYSE: BBY) decreased 4.4% in the third quarter compared to last year. The company risks further loss in market share as more consumers turn to mass merchants and online shopping for their electronics needs. Best Buy offered a weak forecast for the quarter ahead when it announced earnings. The firm's stock fell from $42 to $34 the day of the disclosure. Best Buy will specifically face greater future competition with like Wal-Mart (NYSE: WMT) Amazon.com (NASDAQ: AMZN).

Nintendo

The Wii was a surprise victory for the video game company. The console outsold the Microsoft (NASDAQ: MSFT) Xbox and Sony (NYSE: SNE) PS3 worldwide for most of 2007, 2008 and 2009. More than 86 million Wiis were sold from 2006 to 2010. But as the novelty of the system wore off and with no replacement on the horizon, Nintendo has stopped winning new customers. The company is threatened by Sony's "Move" device for the PlayStation 3 and Microsoft's "Kinect" for the Xbox. Nintendo recently cut its sales forecast for the Wii from 17.5 milion to 16 million for the year. It also reduced sales forecasts for its handheld platform, the DS, by 1 million units.

TiVo

TiVo was once the only standalone digital video recording product. But for more than five years, cable companies have offered the same service without the need to buy a special device. At the end of October 2008, TiVo had a subscriber base of 3.45 million customers. That number dropped to 2.7 million in 2009 and 2.27 million last year, amounting to a 2-year decrease of 34%. Instant streaming available from Netflix (NASDAQ: NFLX) has also cut into TiVo's customer base significantly. TiVo's answer to its dilemma has been to file patent suits against Echostar (NASDAQ: SATS), AT&T (NYSE: T) and Verizon (NYSE: VZ). The IP door swings both ways. Microsoft recently sued TiVo for allegedly infringing on four patents. Ten years ago, when TiVo dominated the market, its shares traded for $50. The price is now under $10.

Continue reading here...

Three Big Lies About Networking

Networking is absolutely crucial to small business owners. Unfortunately, there are lots of lies and misunderstandings about networking. Knowing the truth about networking helps you build connections that could provide business opportunities. Check out MSNBC’s top three lies about networking.

From MSNBC.com:

1. "I can’t network if I'm not an outgoing person."

Go ahead and breathe a sigh of relief — you don't have to become "Mr. Public Speaker" to be a successful networker. Most people naturally develop a certain level of comfort in dealing with customers, vendors, and others in their day-to-day transactions.

There are many techniques that can make the process a whole lot easier — especially for those who consider themselves a bit introverted. For example, volunteering to be an ambassador or visitor host for a local business networking event can be a great way to get involved without feeling out of place.

When you have guests at your house or office, what do you do? You engage them; make them feel comfortable; you offer them something to drink. What you don't do is stand by yourself sulking about how you hate meeting new people. By serving as a visitor host at your local chamber event, you effectively become the host of the party. Try it, you'll find it much easier to meet and talk to new people.

2. "Person-to-person referral business is old-fashioned."

Yes, networking has been around a long time. It used to be the way that most businesses operated. In a small community everybody knows everybody, people do business with the people they trust, and they recommend these businesses to their friends.

Continue reading here

8 Advantages of Investing in a Franchise

Opening your own business can seem scary when you are first starting out, but it does not have to be. There are actually plenty of advantages of investing in a franchise business, as opposed to opening a brand new business.

Roni Deutch Tax Center recently authored a guest blog entry for FranchiseBusinessReview.com explaining 8 of the biggest advantages of opening a franchise. You can find a few items from the list below, or click here for the full text.

1. Tried and True

When you invest in an already created business model, you can have confidence the business will be successful if you work hard and follow the franchisors instructions. Franchised businesses typically have a proven track record of success, and can support nationwide expansion.

2. Trusted Brand

Another big advantage of owning your own franchise business is that you are investing in an already recognizable brand. Unlike other small business owners who have to build up recognition and a reputation, your business is likely to already be nationally known and recognized.

3. Higher Success Rate

According to the Department of Commerce, franchised businesses are more likely to avoid failure. Therefore, investing in a franchise business can be considered a more secure investment then opening up a new business.

4. Quick Cash

Getting financed for a franchise business loan can be drastically easier than it would be if you were seeking a loan to start an independent business. Banks know the lower risk involved in a franchise investment and love to be involved with secure and profitable ventures.

Top 10 Halloween Season Tax Tips

Halloween is one of my favorite holidays. I always look forward to my law firm’s annual celebration. However, there is more to Halloween than costumes and trick-or-treating. The end of the year is only a few weeks away, and Halloween season is a good time to start thinking about taxes. To help my readers save a little money this year, I have put together ten spooky Halloween tax tips.

1. Haunted Home Renovations

Before you have guests over for a Halloween party, you might want to consider making some green renovations to save on energy. By installing a programmable thermostat, or upgrading to dual pane windows, you can keep your guests comfortable and also qualify for an Energy Star tax incentive. For more information, check out EnergyStar.gov.

2. Spooky Soiree's

Most teachers try to throw Halloween parties for their students, but due to budget cuts many educators are forced to finance these events out of their own pockets. Fortunately, if you are a qualifying teacher then you can use these expenses as part of your educator expense deduction.

3. Supernatural Savings

The average consumer spends about $66 each year on Halloween decorations, costumes and candy. Unfortunately, if you visit your local party supply store then you may end up paying more then you need to for your Halloween supplies. Instead, check out deals online to make your money stretch.

4. Eerie Extensions

If you had to file a tax return extension in 2009, then October 15th was the deadline to get your return in. The longer you wait to file your return, the more you will have to pay in IRS late penalties. If you have not yet competed your return, I highly recommend calling a tax professional right away.

5. Chilling Charity

As the weather cools down in October, charities begin asking for cool weather donations. When you have some free time, go through your winter wardrobe with your family to see if you have any extra sweaters, or blankets to donate. Keep the receipt for your contributions, and you can deduct the donation on your next tax return. However, you will need to itemize your return to qualify for this specific tax incentive. For more information, you can read this article explaining the charitable contribution deduction on RDTC.com.

6. Tip or Treat

If you receive tips at your job, then the IRS requires that you keep track of your total tips and report them to your employer. According to Topic 761, if you get $20 or more in tips during a calendar month then you are required to report them to your employer by the 10th of the following month.

7. Witchy Work Party

Throwing a Halloween party at the office is not only great for moral, but also comes with a nice little tax deduction. Food and supplies purchased for your employees can usually be written off if the party is held on the premises. If you plan a dinner or get together at a nearby restaurant then you can deduct half of the expense.

8. Dastardly Deadlines

Since every taxpayer is not required to make estimated quarterly tax payments, it can be easy to forget about the deadlines. Unfortunately, September 15th was a payment due date, and if you did not remember to send in your check then you should try to do so as soon as possible to avoid excessive penalties.

9. Franken-Farming

October is a busy month for many farmers. Luckily, there are several ways for taxpayers who own farms to save on their taxes. Hiring family members or depreciating capital farm assets are both tax savvy moves to make. For more information, you can read IRS Publication 225, Farmer’s Tax Guide.

10. Creepy Calculating

Like it or not, Halloween means that there are only two months left in the year. It is a good idea to think about calculating your tax liability so that you get a head start on end of the year tax planning. If you are looking for ways to prevent owing the IRS a large payment, then check out this article on RDTC.com with advice on how to lower your tax liability.

Law Firm Serves Up Legal Help at a Drive-Through

Over the weekend it was reported that a law firm in Connecticut opened the first drive-through law firm. Now, dropping off documents for clients of the personal injury firm is as easy as getting a Mc Vale meal.

Law.com reports:

The Kocian Law Group has opened a drive-through office in a building that once housed a former Kenny Rogers Roasters.

Attorney Nick Kocian tells WVIT-TV that clients can use the drive-through at the law firm's Manchester, Conn., site to drop off and pick up documents.

He says it's more convenient for his clients. A paralegal works at the window, handing out documents and answering questions.

Consultations and meetings with lawyers will still be scheduled for the office.

Check out an embedded video on the story below, courtesy of NBC Connecticut.com

Dancing Tax Collectors

According to FOX News, tax collectors in the Philippines have released a new viral video to make taxes "a little less taxing." A spokesperson claims that they like to see happy faces on taxpayers, and it looks like their effort has been successful. The department has reportedly doubled their collections as a result of the video. You can find the embedded video below.

Obama Seeks To Partner Businesses, 2-Year Colleges

In a new attempt to improve job growth in the country, President Obama is looking to partner companies and labor unions with two-year colleges. The proposal comes after Congress scaled back the President’s attempt to pump billions of dollars into community colleges.

According to USA Today, Obama is also asking public-private partnerships and philanthropies to help the schools produce a well-educated workforce.

On Monday, he announced an initiative through which companies, labor unions and two-year colleges in 50 states would collaborate to improve job training and workforce development.

Today, he is scheduled to address business leaders, educators, and others at a White House summit aimed at better aligning learning with workforce goals.

"We want to make it easier to join students looking for jobs with businesses looking to hire," Obama said Monday at the start of a meeting with his economic recovery advisory board. "We want to put community colleges and employers together to create programs that match curricula in the classroom with the needs of the boardroom."

Continue reading at USA Today.com…

Jay-Z, Buffett and Forbes on Success and Giving Back

From Forbes.com:

Neither Jay-Z nor Buffett would admit to being nervous. It was their behavior that gave them away. Jay-Z the wordsmith said little at first but stared at Buffett intently, taking in every word. He ordered what Buffett ordered: a strawberry malt, thin. He barely touched it. Buffett never stopped talking, telling childhood stories about stealing syrup from nickel Coke machines and peeling off zingers. "When you see me reach for the check," he told the photographer, "you'll know I'm posing." They warmed up quickly and were soon laughing every minute or so. As they left Jay-Z headed over toward his Escalade. Warren called him back, "I'll give you a lift. Sit up in the front with me. My rates are very competitive."

Steve Forbes: You two are unique. In very different spheres you've each reached a level of success that's almost legendary. What did you do that made you different?

Warren Buffett: Well, I was lucky that I got started early. My dad happened to be in the investment business, so I would go down to his office on Saturdays. At age 7 or so I started reading these books that were around the place. I knew what I wanted to do early. That's a huge advantage.

You don't need a lot of brains in this business. I've always said if you've got an IQ of 160, give away 30 points to somebody else, because you don't need it in investments. What you need is emotional stability. You have to be able to think independently, and when you come to a conclusion you have to really not care what other people say. Just follow the facts and your reasoning. That's tough for a lot of people. But that part, I was just lucky with. I was born that way.

Read more here

Postal Service Fine Without Taxpayers

As the US Postal Service continues to struggle with revenue problems, many taxpayers have become worried about the possibility of another huge bailout effort. However, according to the Washington Times representatives from the USPS have no desire to request a taxpayer-funded bailout.

It's election time in an era of polarization, but that doesn't excuse misleading the public with claims that the U.S. Postal Service seeks a taxpayer bailout ("Time for another government bailout," Commentary, Sept. 21). Nor does it excuse congressional interference with bargaining between the Postal Service and its unions. Unfortunately, the article by Rep. Darryl Issa fails on both counts.

The Postal Service doesn't seek a taxpayer bailout. It proposes to use a surplus in its pension account within the Civil Service Retirement System (paid for by postage rate payers and postal employees - its own funds, not taxpayer funds) to cover the cost of future retiree health benefits. Congress imposed the cost of pre-funding these future retiree health benefits - $5.6 billion per year - on the USPS in 2007. This requirement, which no other agency or business in America faces, is the major cause of the recent financial crisis at the USPS, not the Internet or the recession. Without the pre-funding requirement, the USPS would have been profitable two of the past three years.

The USPS also has plenty of flexibility to downsize - it has cut more than 100,000 jobs since the recession began in late 2007. The no-layoff contractual clause the congressman criticizes covers only workers with more than six years of service - leaving some 160,000 career and noncareer employees subject to layoffs.

Sadly, these problems are worsened by congressional inaction on resolving the unfair pre-funding burdens on the Postal Service. Yet Mr. Issa proudly vows to block legislation to address the situation.

Politicizing one of America's great institutions by getting Congress involved in the collective bargaining process is the last thing we should do. The Postal Service has not received a dime of taxpayer support in more than 25 years and offers the best, most affordable service in the world.

8 Habits of Successful Business Owners

Last week the Roni Deutch Tax Center had another guest blog entry published on FranchiseBusinessReview.com. The new article explains 8 common habits of successful business owners. You can find a few items from the list below, or check out the full blog entry at FranchiseBusinessReview.com.

1. Always Motivated

Everyone knows that you need motivation and drive to be successful in life. However, it is important to remember that when you’re running a small business you need to be able to not only motivate yourself, but motivate your employees as well.

2. Goal Oriented

Successful business owners are goal oriented, they know what they want to achieve and how long it will take them to get there. Additionally, having clear goals for both yourself and your employees will help keep everyone motivated.

3. Time Management

When you own a small business, time equals money. If you want your business to be a success you will need to understand time management, and be able to plan how to best utilize your own time and the time your employees are on the clock.

4. Money Management

In addition to managing time, as a small business owner you also need to be able to properly manage your money. Although money should not be the only reason you open a business, you do need to be able to judge what is profitable and what is not. Fortunately, there are tons of accounting programs that can make money management a lot easier.

Worries Over Tax Hikes Coloring Business Decisions

From the Wall Street Journal:

The uncertainty over looming tax increases is starting to affect both investing and corporate decision-making.

The economy remains the biggest factor in many investors' and businesses' decisions. But worries over whether Congress will extend some of the expiring Bush-era tax breaks are emerging as another important one.

Stock prices of utilities, for example, recently have appeared to be factoring in the possibility of significantly higher dividend taxes next year, several analysts say. Some companies are pumping up dividend payments this year to beat the possible 2011 tax increase, and their shares have rallied.

Small-business owners say unease about tax policy, along with the economy, has led them to hold off on hiring and investment. And many advisers are encouraging well-to-do clients to sell appreciated assets to avoid higher capital-gains taxes.

Congress hasn't decided how to address the tax cuts from the George W. Bush administration, which are set to expire Dec. 31. President Barack Obama proposes to allow taxes on dividends and capital gains to rise to 20% from the current 15% for higher earners, defined as families with incomes of more than $250,000.

But many congressional Democrats want to let dividend tax rates, along with ordinary income rates, rise next year for higher earners to as much as 39.6%.

Cardholders Prefer Debit as Credit-Card Use Falls

For the first time the total payment volume of debit cards in this country surpassed credit-card volume. As this article from Bloomberg.com explains, this trend will continue in 2010 as more taxpayers are trying to avoid incurring more debt. Considering the way of our economy at present, I think it absolutely great that people are being more conscientious about incurring more debt!

At San Francisco-based Visa Inc., the world’s biggest payments network, the total payment volume for debit cards increased by 7.9 percent in 2009 to $883 billion as credit-card volume declined by 7.3 percent to $764 billion. Volume for debit cards at No. 2 MasterCard Inc. in Purchase, New York, rose by 5.8 percent and 2.8 percent at No. 4 Riverwoods, Illinois-based Discover Financial Services.

“Consumers are turning from one form of plastic to another,” said James Van Dyke, President and Founder of Javelin. “Credit cards are falling out of favor as cardholders become more cautious and look for more conservative payment methods.”

Fifty-six percent of consumers said they had used a credit card in the past month compared with 87 percent who said they had in 2007, according to the study, which surveyed 3,294 people in November 2009 for that question. Other findings were based on data collected online from 5,211 respondents in March 2010 and 5,000 consumers in November 2009. If the rate of decline continues, 45 percent of consumers will reach for a credit card in 2010, the study said.

Continue reading at Bloomberg.com…

Obama Offers Another Hand To Businesses, More Tax Breaks

From NPR.com:

President Obama is proposing some new tax breaks he hopes will encourage businesses to expand and get the economy moving again. The President is set to unveil the tax breaks along with a plan for $50 billion worth of infrastructure investment in a speech about the economy on Wednesday, but some details about the tax breaks are already being reported.

One proposed tax break that's receiving a lot of attention, would allow business to write off 100 percent of new capital investments, money spent on plants and equipment, through 2011. Companies can already deduct these expenses, but currently they have to wait longer to do so. Allowing businesses to take the deduction upfront, will mean they have more cash on hand to spend or invest. Economists at the White House estimate that the plan would cut business taxes by around $200 billion over two years.

The President is also going to propose increasing and making permanent tax credits for research and development. The research tax credit is typically extended by Congress year after year, but some gaps have left business groups frustrated.

About 2,000 Employers Qualify for Federal Subsidies for Retiree Healthcare

From LATimes.com:

Businesses, labor unions and state and local governments are seeking aid under a $5-billion program in the new healthcare law that encourages employers to keep insurance plans for retirees ages 55 to 64.

Reporting from Washington —

The Obama administration announced Tuesday that nearly 2,000 businesses, labor unions and state and local governments have qualified for federal subsidies to offset the cost of providing their retirees and dependents with medical insurance, another early benefit of the new healthcare law.

Among those taking advantage of the program are more than half of the nation's Fortune 500 companies, many major unions and governmental bodies in every state, according to the administration.

Several states that are suing to overturn the healthcare law are among those that plan to seek the aid, including Alaska, Arizona, Idaho, Indiana, Louisiana, Michigan, Nebraska and Nevada. All but Louisiana are represented by Republicans in the lawsuit challenging the law.

Democrats added the $5-billion program to the healthcare law to encourage employers to keep their insurance plans for retirees ages 55 to 64 until 2014, when the law will guarantee that all Americans can buy insurance.

Save Dough When Dining Out: Top 10 Ways to Cut Your Restaurant Bill

Eating out is a great way to get a good meal with out much effort, but it does come at a price, especially if you dine out often. One of my favorite finance blogs (WalletPop.com) recently put together a great list of tips to save money when you dine out. I have included a few of their tips below, but you can find the full list here.

1. Forget about the "Joneses"

Unless I am at a business dinner, I could care less what other people think of me when I order -- or for that matter, not ordering. If I'm so worried about what my friends think, maybe they're not really my friends. As long as I am content and have followed the proper tipping etiquette guidelines, I'm not going to worry. To me, this is the number one way to keep your bill in line, hands down.

2. Eat those freebies

It could be bread and butter, chips, or just about anything. Take full advantage of these freebies! Am I saying to stuff yourself silly with bread and butter so much that you don't even order an entrée? Of course not. But if restaurants give you some food that comes out before your main meal, isn't that kind of like an appetizer? Do yourself a favor: Fill up on the chips and salsa or bread and butter within reason and skip the paid appetizer. And don't be shy about asking for a refill.

Continue reading at WalletPop.com…

FDIC Says 829 U.S. Banks Remain at Risk for Failure

According to Wallet Pop, the FDIC has 829 financial institutions – or 1/10th of the banks in this country – on their “problem” list that need to be watched for potential failure. 118 banks have already gone under this year, compared with 140 in 2009.

Around 829 of the country's 7,800 banks were on the Federal Deposit Insurance Corp.'s "problem list" at the end of June, up from 775 at the end of the first three months of the year, the Wall Street Journal reported. Already this year 118 banks have failed, well ahead of last year when 140 went under.

It's still difficult to get a loan; total loan and lease balances fell 1.3 percent from April through the end of June. Total banking assets fell 1% to $13.2 trillion during the quarter.

FDIC Chairman Sheila Bair says banks are starting to ease lending standards in some cases but warned that "lending will not pick up until businesses and consumers gain the confidence they need to hire and spend."

The FDIC also says there were 104 fewer banks in the second quarter compared with the first quarter, and for the first time in the last 38 years, no new banks were added.

Continue reading at Wallet Pop.com…

Tax Hikes Loom For Businesses

Congress is going to have a handful of tax issues to consider when they return from summer recess, many of which will affect American businesses. According to Forbes.com, legislators will need to take on bills dealing with expiring tax cuts, tax relief for businesses, and energy laws likely to have significant tax implications.

The difficult part: Paying for it all. No member of Congress wants to be viewed as raising taxes in the weeks before Election Day. Much of the work can--and probably will--be done in the "lame-duck" session following the election, but the dynamics of such sessions are notoriously unpredictable. At the same time, lawmakers will be feeling pressure to trim the $1.4 trillion federal budget deficit. The president's Fiscal Commission suggesting steps to do this is due by Dec. 1.

Business is watching closely. Congress is also cooking up an alphabet soup of tax measures to offset some of the outlays, and how it turns out is anyone's guess.

"Everything that has been in any bill that has been passed by the House or Senate is fair game and is at high risk of being done," warns Clint Stretch, managing principal for tax policy in the Washington office of Deloitte Tax.

The most debated item is whether to extend the Bush tax cuts, which expire at the end of the year. The Obama administration has proposed keeping them in place for about 98% of all Americans, but letting the top marginal income tax rates rise for individuals earning more than $200,000 per year and couples who make more than $250,000. The top two rates would be 36% and 39.6%, up from 33% and 35%, respectively, at present.

Continue reading at Forbes.com…

Questions for the Tax Lady: August 16th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: How long should I keep my business receipts?

Generally speaking, you should keep all business receipts for at least three years. However, you should try to keep other financial documents – such as your business tax returns – for at least five years.

Question #2: Is it possible to get copies of my old tax returns?

Yes. You can request an official copy of your old tax returns using IRS Form 4506. However, there is a $57 fee for each tax return you request. Alternatively, you could request a tax return transcript or tax account transcript from the IRS free of charge by filling IRS Form 4506T-EZ.

Business Inventories Up 0.3 Percent In June

From MSNMoney.com:

Inventories held by businesses rose for a sixth straight month in June but sales declined for a second month in a row.

Inventories increased 0.3 percent in June, the Commerce Department reported Friday. But sales fell 0.6 percent following an even larger 1.2 percent sales decline in May.

The weakness in sales raises concerns about whether companies will continue boosting inventories. Inventory rebuilding had been an important source of strength driving the economic rebound.

Businesses had been rebuilding their inventories in recent months after slashing them aggressively during the recession. But if consumer demand weakens further, businesses could start cutting back. That would mean fewer orders to U.S. factories and weaker output for manufacturers.

The consecutive declines in sales in May and June followed 13 straight increases in total business sales. The June decrease reflected less demand for manufacturers, wholesalers and retailers. A separate report Friday showed that sales at the retail level rebounded in July but the strength was concentrated in higher demand for autos and gasoline.