Your Business For many growing companies, a
large percentage of working capital is tied up in accounts receivable.
Some businesses that extend credit have as much as 20 percent of their
annual sales outstanding. Of course, receivables help to grow your
company's balance sheet but they're not much use when you need money.
Insurance Companies - Good for Business and Saves Taxes
One way to get a quick infusion of cash is to turn to a little-known
service called "factoring." With this option, your company sells its
accounts receivable to a bank or financing firm and it assumes the risk
$1.2 Million Deduction
Business Owners (or affiliated groups of
such as Professional practices and self-employed) can take advantage of
section 831(b) of the Internal Revenue Code. The Code permits formation
of a private insurance company known as a captive insurance
company. Members of this group can take a Section 162
tax deduction against ordinary income up to $1,200,000 per year in
insurance premiums paid to the captive insurance company.
Protecting Against Delinquent Accounts Receivable.
always be some customers who are slow pay or no pay. Don't just sit
back and wait. The longer you wait the greater the likelihood of not
Recession Proof Your Business. Many businesses and
their employees are facing challenging economic times. Credit
restrictions, job losses, sales cutbacks, soaring energy prices,
mortgage foreclosures and a downward economy makes it hard to
successfully run a business. Here are some of the basic ideas to keep
your business profitable in tough times,
Cash is King! In a turbulent economy, your business needs cash to pay
its bills. Cash is needed to implement growth plans and take
advantage of business opportunities.
Improving Cash Flow in a Down Economy. Cash flow is
important to keep a business running. Frequently, there is a push for
sales but not an equal emphasis on collection. Managing a business
requires that Sales personnel are fully aware of non-collections.
80% of your results come from 20% of your effort!
80% of your revenue comes from 20% of a
business customers. Also, 80% of sales are
made by 20% of
your sales force. Of course the real question is "do 80% of the profits
come from 20% of the sales?"
Improving Customer Relations. Business owners are often
surprised their employees fail to understand
the significance of maintaining quality customer
relations.Since the cost of keeping customers is only about 20% of the
cost of acquiring them, keeping customers is the key to business growth
Employees need continual reinforcement of the behaviors to keep
Negotiation Ideas. Here are some negotiation ideas and
Email Disclaimers help Limit Liability. Using E-Mail and the
Internet can exposure your business to increased
liability. As an employer, you are usually held liable for anything in
e-mails for your company as well as the contents of your website.
Comparison Between S Corporations and LLCs. Federal Income
tax advantages of Partnerships compared to S Corporations.
Section 1244 Stock.
Get Ordianry Income Tax Deductions for losses on nerw corporations.
connected to Employee
Dedication. Are your employees enthusiastic and committed
about their work? Studies
demonstrate that more than half of all employees admit to not even
trying to do their best work. They are not committed to the job or the
Owns Employee Inventions? The legal issue fundamentally deals
with intellectual property rights ownership. Typically, the main
question is" Who owns
the rights to an idea?" Does the employee who conceived it
or the company or organization employing the individual own the
Employee theft can financially ruin a business. Whether it is the
cashier stealing or employees theft of services, an attitude
promoting integrity is key to business. The average business suffers
losses of $500 to $1000 per employee.
Talented Employees for
Your Company. No matter what the state of the economy finding
the right employees for
your business takes planning and creativity.
Bad Employees. Can you fire an employee just
because of a bad attitude? What about big-mouths and trouble makers?
Employers. The United Stated
Department of Homeland Security is leading the attack on Immigrant
Workers. The government's web site lists
requirements. Please check with your business attorney about this issue.
Violence at Work. Workplace violence is a problem but
certainly not a "national epidemic."
By carefully monitoring workplace interactions, you can fulfill your
legal obligation to provide a safe work environment. And it helps you
avert lawsuits that can cost enormous amounts of time and money, as
well as damage your reputation as a concerned employer.
Save Payroll Taxes by using a "common paymaster" If your
held businesses are operated using two or more corporations, the
different entities may share some of the same employees. By using a
common paymaster for these concurrent employees, you will save some
social security tax and possibly state and local taxes and worker's
compensation insurance premiums.
Website issues to
help your online business