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Holiday Tips!

11/26/2019

The holidays can be an exciting or terrifying time for any size business. It is up to you to make the most of the holiday season and make it the most wonderful time of the year for you and your employees.

No matter the size of your small business, what your seasonal goals are, or if the holidays overwhelm you, don't let anything stop you from achieving all of your goals and enjoying the holidays as a business owner! At this point - many of you have already been planning or have already put into motion your sales and strategies for the holidays. But if you haven't yet, or you're having a hard time of it this year, don't panic. Breathe. Remember, you've got this! Kick-off this week with a strong cup of coffee, determination, and these tips to help get you through.

Don't Be A Scrooge!

One of the most common mistakes at the end of the year and during the holidays is poor bookkeeping. If your company needs to vamp up its bookkeeping software, now is the time. When you finish this fiscal quarter, it will be the end of your business year. Do you know what comes next? Tax season! If your company is planning on really expanding during the holidays and is expecting large amounts of holiday revenue, don't let poor software hold you back, damage your holiday income, or ruin your tax paperwork. It's an investment that will be worth your while!
Is your company growing with a few new employees for the holiday rush and higher production needs? Invest extra time in training them. You might be running on a high level of stress but these wonderful people are here to ease that. It's worth your time to invest in them so during the busiest times, you don't have to stop and help, retrain, fix problems, or possibly replace them. This also prevents sales mistakes or any negative feedback for your company. It helps to hire these new employees early or bring back past holiday workers who you already know and trust.
A fun and welcoming activity for your employees and customers is to decorate! Take advantage of the season and have fun. If you have a brick and mortar store this can help cheer up even the biggest Scrooge who walks into your shop! Be unique and creative! Don't blow your budget to decorate, use your products and brand to inspire your decoration decisions!

Holly Jolly!

Be Prepared. It's so important, I'll say it again. Be prepared! People will be shopping and they will want to buy. Many shoppers will save up all year to buy Christmas gifts! You'll want to make sure that you have extra inventory to support this. From your most popular products to what you plan on highlight as sales and special deal items, make sure to have extras ready. Always have a backup plan to order or create more if need be. Also, make room in your budget for a little extra cash to help pay for expedited or overnight shipping just in case.
How is your marketing campaign? How is it standing up against your competitor and in the holiday market? Make sure it is well thought out, well planned, and well-executed. Make sure it fits your brand and your customer base. If it is totally off-brand, it can turn off and turn away both loyal and new customers. Plan ahead of time so going through each holiday at the end of the year isn't a surprise. It allows you to reap all the benefits from the holidays, and the potential business a great campaign can create.
Set goals. Take advantage of this busy season and push yourself and your team to end the year with a bang. Don't just hope you'll make a random amount of money that might be bigger and better than last year. Just like your marketing plan, set goals, actions, how to achieve them, and make it a reality. This can range from growth sales to growth in your social media following.

You love what you do, that's why your company exists in the first place. No matter what holiday it is, don't let anything get in your way of enjoying a season that is good for your company. Take these tips and walk into the holidays ready to take on whatever comes your way.

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Saving Pennies for Turkeys!

11/19/2019

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It's so easy to splurge during the holidays, but don't forget that Thanksgiving is just one of many festive activities on your list over the next few weeks and months. You also might want to still have a few dollars left in the bank once the new years begins. So enjoy these tips on how to save a few dollars as you approach the holiday season.

I'm not sure about you, but Thanksgiving has always been one of my favorite holidays! Sitting around with your loved ones, celebrating the things you have to be thankful for, all topped off with an amazing plate (or two) stuffed full of amazing food, all ending with a nap? That sounds pretty perfect to me. It's so easy to want to buy the best foods, the best decorations, and the best little extra things to make these days special. But remember, you can still make Thanksgiving and every holiday special without breaking the bank. Just in time to start buying all of your favorite items to kick off the holiday season, here are a few tips on how to take care of your bank account while still celebrating the holidays in style!

Don't overbuy or buy expensive items. Everyone loves to eat extra food on thanksgiving but plan on feeding the actual number of guests that will be attending your dinner, and not planning for the entire neighborhood. Maybe plan a little extra for those days after Thanksgiving sandwiches too, but go easy on yourself. This also means less cooking and stress for you too!
Don't splurge on everything. Not every item has to be the most expensive or the very best. Pick an item or two that you'd like to be the special centerpiece of the meal, and the rest can be regular store-bought items or even discounted.
You don't have to buy and make everything on the menu. If you're hosting, have your guest bring items to share. If you are in charge of the turkey and a few other staples, have your guests bring the rest. They can even bring cups, plates, and other paper items to cut down on clean up time and expense!
As much as we all love specialty grocery stores, they are also the most expensive to shop in. Shop at your local chain grocery stores to save money. You will find everything much cheaper, and the quality is still fine.
Check your fridge and pantry before you go shopping. You might already have a lot of ingredients and items you need to get cooking. Don't waste money on buying a duplicate of something you already have!
It's hard not to decorate every room of your home like Martha Stewart, with a top-dollar budget to make it Hallmark ready. Remember, decorative items can add up quickly too. See what you already own and get creative. The amount of adorable DIY projects out there are amazing. You'll be surprised at what you can find. Also, invest in what's growing in your garden! The last bit of seasonal flowers, greenery, squash, pumpkins, and other garland are PERFECT for holiday decorations!
Your turkey can easily be the big-ticket item on your shopping list. But if you get your turkey at a chain supermarket, this is the easiest place to save money. You will find that turkeys are much cheaper there.
Research what will be cheaper to buy pre-made and what will be cheaper to make from scratch. This might surprise you!
If you are hosting a large Thanksgiving this year, use stories like Costco or Sam's Club to your advantage. Buy in bulk and save. At some Costco's you can even buy wine and other alcohol in bulk very inexpensively!
If you are traveling for the holidays, try and travel with just a carry-on. Thanksgiving trips usually are shorter than most, and you don't need any extra room for gifts just yet.
If you're flying for the holidays, start thinking about buying your tickets in advance. A lot of experts recommend you start looking and purchasing as early as September if you can. Fly on days where it will be cheaper. Use popular apps and websites that are designed to help find the cheapest flights for you.
If you're visiting family and friends, try and stay with them instead of renting a hotel room! If that isn't an option, try looking into Air B&B instead. You will get a homey feeling for a much better price.
Pick and choose which holidays you're going to travel for, don't travel for all of them. Have family come to you, or celebrate locally with friends. Use Skype, Video Chat, and a good old fashion phone call to check in on your family if you decide to stay home for Thanksgiving.
Use coupon saving apps and websites, and save up any kind of grocery store points and rewards for the holidays. These will go a long way. You can also apply this to fuel points and other offers for the holidays as well!

The holidays can be overwhelming and expensive. But if you take the time to do a little extra research and planning, they certainly don't have to be. Use this list to help enjoy your holiday, let it be a little less stressful, and save some money while you're at it!

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Late for a Very Important Date

11/1/2019

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What happens if you are unable to pay your taxes on time? Are there other options for you? Don't panic, that is what we will be discussing!

Tax Day will be here on Wednesday, April 15, 2020, if we are ready or not. You can file your taxes as soon as you get all of your W2s, 1099s, and other tax forms from your employers. One of the perks of filing early is getting that prized tax return early. You should receive it within three weeks of filing. If you file your taxes sooner than most, you won't be fighting against the crush of everyone else who waited until the last moment to get everything filed. But what happens if you've filled out all your tax paperwork and you can't pay what you owe the IRS? What happens if you don't fill out your paperwork and file on time? Take a breath and let's review some options out there for you.

The Bottom Line

First of all, there are options for you so don't panic. If you are unable to pay on time, immediately file for an extension. Once you do this, you have to pay attention and stay on top of your extension just like you would any of your bills. Please know that there are penalties if you don't pay on time and a separate penalty for not filing on time. Not being able to file on time is a much larger penalty than not being able to pay on time. Failure to file is 5% of the money due per month and can go up to 25%. Failure to pay is .5% of the money due up to a max of 25%. If you can't pay right away, at the very least fill out and file your taxes. This way you are aware of how much is due and can hopefully avoid some of these penalties. But interest does add up until your tax bill is paid in full.

Possible Options

Try and find some options to help you pay on time. See if you can borrow money from family to help pay, get an advance on your next paycheck, or sell items you no longer need or use anymore. You can dip into your savings if you need or even tap into your 401(K). These aren't ideal options, but they will help you in the long run. You can pay your taxes with a credit card, but to do this you have to contact a special service provided through the IRS. You will be charged a continuance fee to do so and that adds up to be about 2.5% of what you're already paying. You will also incur interest charges if you can't pay off the credit card payment quickly.

Not Quite Enough

If you can't come up with the money and you don't have a credit card to use, you can work out an installment plan with the IRS. You will need to fill out form 9465, the Installment Agreement Request, and attach it to the front of your income tax return. You might even be able to request a payment plan online. This doesn't mean you can avoid paying interest on what you still owe. This interest will still accrue until everything is paid off. But in this situation, the IRS can reduce any failure to pay penalties.

Not Even Close

If the amount you owe is so large and there is no way possible that you will be able to pay, there is a program called Offer In Compromise, where the IRS may take less than the full amount that you owe. To do this you need to complete form 4334 and 656, along with a collection information statement. You will also need to provide a total financial statement. This includes a list of everything you own, all of your debts, your income, and the amount you can pay right away to make a compromise with the IRS. The IRS will then review this information to see if they will accept the compromise. You are required to pay all tax liabilities on time for the next five years for this compromise. If this requirement is not met, the whole original amount of your taxes will be your responsibility again, more penalties will be added on, and the IRS can get money from you in many other ways that could hurt and damage your credit score, like filing a lien on your property.

Options

The IRS website tells taxpayers not to panic if you can't pay on time, and lays out the general options for you. The big thing they stress is to file on time and then contact them right away to talk about your money situation. Don't hide from them. They will find you one way or the other, you won't fall through the cracks. The IRS can temporarily delay collection by reporting your account as currently not collectible until you can pay, in some circumstances. But they will be more willing to work with someone who is upfront and comes to them rather than those who hide or lie to them. What can help in the long run is making sure the right amount is being taken out of your paychecks, so the amount owed at the end of the year isn't as painful. If you operate as an independent contractor, save a percentage of every paycheck to make up for the fact that no one is taking anything out for you.

Not being able to pay your taxes can cause huge amounts of stress and panic, but try and not let it. Just make sure you are using the options and resources available to you. You will make it through this tax season, and many more to come! For more information and help from the IRS follow the link below!

https://www.irs.gov/newsroom/what-if-i-cant-pay-my-taxes

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Hoods Tax &
Accounting Blog

Holiday Tips!

Saving Pennies for Turkeys!

Late for a Very Important Date

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​Hoods Tax &Accounting Blog

Holiday Tips!

Saving Pennies for Turkeys!

Late for a Very Important Date

Author

Archives

Categories

Hoods Tax &
Accounting Blog