Successful Blog

Why Your Business Still Needs to Attend Conferences

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Everything’s online nowadays, meaning people can easily connect via social media and phone conferences.

It’s easy to think that real-life conferences are a thing of the past, but actually, it’s the exact opposite. Conferences are important for small businesses to attend more than ever now. Basically, there’s no replacement for meeting people in-person.

With that in mind, here are some reasons you should not shy away from conference opportunities:

  • To network – While you can network online, there’s nothing like networking face-to-face. Face-to-face networking allows you to have a long conversation with someone, get to know someone on a more personal level and get to know those that are presenting. You may forget an email between a business associate, but you’ll never forget a face.
  • To break up your routine – Stepping outside the box allows you to think outside the box. By breaking the monotony of your day to day routine, you’re helping get your creative juices flowing. You may come up with a new business strategy, think of a way to better your product or connect with someone to market with. Attending a live conference is one of the best ways you can break up your routine.
  • To learn from others – Even if you consider yourself an expert in your field, you can always learn more. You may pick up something as big as a new strategy for your business plan or something as small as a new marketing technique. Either way, you’re guaranteed to learn something that will help your business by attending a face-to-face conference.
  • To meet your competitors – By attending a small business conference in your field, you’ll meet business owners just like yourself, i.e. your competitors. This is your chance to mingle with those that are more successful then you. You can ask questions and gain insight in order to improve your business. It’s also your chance to share your knowledge with businesses either just starting out or not as successful as yourself. You can present yourself as an expert in your field.
  • To relax – That’s right, attending a business conference can be a great way to relax while still working and improving your small business. It’s the best of both worlds. Come a day or two early or stay an extra day to explore the city the conference is in. Don’t feel obligated to attend every conference, either. If you wish to sleep in, sleep in. If you want to catch up with an old friend who lives in that town, go! Think of it as a mini-vacation where you get to have fun while still growing your business.

If you’re worried about travel expenses, most small businesses can write them off come tax season.

You should be able to write off food and hotel expenses, as well. Make sure to check discount travel sites for deals on airfare and consider splitting the cost of a hotel room if you know someone else that’s attending.

Small business conferences take place nationwide throughout the year.

Find one in your field, book your flight and go. Make the most of the experience by having fun, being social and proudly sharing what you’ve accomplished with others. More than likely, you’ll want to attend conferences on a yearly or semi-yearly basis.

Like was stated earlier, nothing replaces face-to-face interaction that a business conference provides.

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About the Author: Sarah Brooks is a freelance writer living in Glendale, AZ with her husband and two daughters. She writes on cheap Vegas hotels, travel and small businesses.

Tax tips for freelancers: is it a business or a hobby?

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By Sharita Hutton

For Chicago based Aubre Andrus, writing is her life. The author of seven children’s books, a blogger, and website copywriter, Andrus calls herself a triple threat when it comes to her work. “I mix marketing savviness with journalistic integrity and creative writing thanks to various positions I’ve held in the past,” Andrus said.

But instead of waking up every morning, and heading into the office, Andrus is finding her roles in media through freelance work and it turns out she is not alone.

It is estimated that there are 42 million people in work operations based on “freelance” principles and the number continues to grow. That is, these workers have a great deal of freedom in how much and when they work, who they work for and what they get paid. The freedom comes to a halt when it comes to taxes because even if just a little extra income is being earned, that money is reportable income. Plus, special reporting rules apply to some freelancers.

“My least favorite part about being a freelancer is dealing with tax-related issues. I dread tax season and I had no idea what to do at first,” Andrus said.

Freelancers need to track what they earn because even if they don’t get a 1099 or W-2, reporting this income is required by law – even when the payment is made in cash. When freelance work becomes the main source of income or a full-time job, income and expenses need to be reported on Schedule C. Also, when freelancing becomes a business, self-employment tax may be owed, along with quarterly, estimated tax payments. An advantage of operating a business is that expenses can directly offset income, which means a freelancer can show a loss.

“I pay quarterly taxes,” Andrus said. “There a lot of decisions freelancers need to make when it comes to finances, and these are decisions that shouldn’t be made on your own.”

H&R Block Tax Professional Riley Holmes has advice for freelancers. “As a small business owner, you are most likely to report your business income in the year you receive it and deduct your expenses in the year in which you pay them. Sometimes it may be advantageous for you to defer some of your billing until the next year, but once you have access to the income you must report it.”

When freelance activities are at the “hobby” level, all related expenses can be deducted as miscellaneous itemized deductions. But, the deduction is limited to the total revenue from that hobby and it is only for the expenses in excess of 2 percent of adjusted income.

The more you operate your business in a professional manner, the more likely the IRS will treat it as a profession rather than a hobby, making it important to

  • Track all income (it is reportable and taxable)
  • Save receipts (you could be able to deduct some expenses)
  • Secure digital and paper records (be sure to back them up, too)
  • Separate bank accounts (makes it easier to keep good records and file accurate tax returns)
  • Know tax rules for business model (it makes a difference if you have a business or a hobby)
Author’s Bio: Sharita Hutton helps bloggers and other entrepreneurs navigate tax issues. For more information about the difference between having a freelance business and a hobby and other tax topics, contact an H&R Block tax professional. To find the nearest H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.

Budget for Small Business Health Insurance

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With the introduction of Obamacare and your employees rushing to find out what insurance plans will work best for them, it is no wonder you are wondering how these changes are going to impact your business.

While the world of business insurance is changing, there are ways to keep up with these changes and still provide your employees with the health insurance and benefits they need. But before you do that, it helps to create a realistic budget that lets you offer insurance but still remain within the business assets you have available for these benefits.

Here are some tips and resources to help you get started.

Choosing to Offer Health Benefits

The first step when creating your budget should always be to decide if you will offer health insurance.

While in the past, this was a given, you might want to rethink your plans for 2014 and later years. Obamacare is going to change the necessity of businesses offering health insurance plans and the plans that are available.

However, keep in mind offering insurance is also considered one of the many benefits that entice employees and keep them happy with working for your company.

Some things to note are that health benefits are cost effective when combining with other benefits for your employees and they improve employee morale. This can help your business advance to the next level, improving your productivity level.

Creating Your Health Insurance Budget

Next is the budget factor.

No matter how small your business is, you still need to create a health insurance budget before moving further with the type of health insurance benefits that will be offered to your employees.

Start by looking at your current or past budget, if you have it. Look at different budget templates. You may need to make some tweaks to it, but it’s a great place to start.

Look at your overall business budget and how much you can set aside for health insurance, and start there. Once you have this number, you will be able to then look for insurance plans within this budget.

You may also want to compare the costs of individual versus family health insurance benefits.

Types of Health Insurance Plans

Now that you are working on your budget, think about the types of health insurance that is available to choose from. This includes group health insurance and defined contribution plans.

The group health insurance plans are the most common and are sponsored by your business. You will provide these benefits to your employees, who then get a choice of which they opt in for, changing their premiums, plans, coverage and more.

Instead of paying costs to a specific plan, you can also offer defined contribution health plan which is a more affordable option and is more of a discounted plan, rather than insurance plan.

Moving forward into 2014, you will find that the current health insurance plans you are offering have changed somewhat, but are still available.

If you are fine with your budget and these plans suit your employees, don’t stress about making big changes.

Photo credit: iwvoices.com

About the Author: Tina Samuels writes on social media, small business, marketing, and insurance.

5 Keys to Properly Selling Your Small Business

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If you’ve started a small business from the ground up, then you know just how much hard work goes into making a business successful.

So, when it comes time to sell your baby, it’s important that your exit strategy is the right one in order for all that hard work to pay off.

With sale success in mind, here are 5 key strategies to properly selling your small business:

1. Patience is a Business Virtue

No matter how much planning goes into the sale of your small business, if you don’t wait until the most opportune time to sell, then you’ll likely end up disappointed. This is true for you, the seller, as well as the potential buyer.

In other words, it’s wise to wait until the timing is right and your small business is financially stable before selling. A business that’s successful on paper will result in a higher selling price. That said it’s also important to wait for a buyer who’s not only financially capable of taking over your business, but also business savvy.

2. Picking the Right Buyer

Most small business owners don’t just sell their livelihoods only to walk away and never think about the sale again. In fact, owners have a vested interest in their businesses long after the sale either in the form of shares, partial ownership, or on an emotional level.

Because of this, it’s imperative that you choose the right buyer to take over your small business. This means a financially stable buyer with experience in running a small business. On top of that, look for a buyer with the same passion you have for your small business.

3. Broker vs. Sell by Owner

Selling your small business yourself may sound like a good idea, especially considering the fees and commission involved with hiring a broker. But, if you don’t know what you’re doing in the sale department, then the money saved selling on your own may be more trouble than it’s worth.

So, take into consideration the paperwork involved with purchase agreements, nondisclosure and confidentiality agreements, bills of sale, leases, and security agreements. If that’s something you can handle realistically, then a broker may not be necessary.

4. Finding the Right Selling Price

When it comes down to the bottom dollar, a lack in research could result in your small business’s selling price coming in too high or too low. A high price is bad because it scares away potential buyers whereas a low price makes you, the seller, look like you’re trying to get out of a business gone wrong.

So, it’s wise to consider everything from the competition to the economy to the industry your business is based in before setting the sale price. This, combined with independent research on brand specifics, will result in the right asking price.

5. The Why Behind the Sale

Beyond all the pre-sale preparation and planning, everything about selling your small business will boil down to one word and one word only: why? The buyer’s definitely going to want to know, so be prepared.

Ask yourself why you’re selling your bread and butter – if it’s because you’re moving on to new horizons or retiring, then that’s perfectly fine. But, if you’re selling because the business is failing, then that’s something the buyer needs to know. In other words, be honest with yourself and the potential buyer.

By keeping these key strategies in mind, you’ll have a hassle-free time selling your beloved small business.

Photo credit: sellabusinessflorida.com

About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including personal health, the best accounting software, and small business.

3 Small Business Concerns Going Into 2014

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What will 2014 have in store for small businesses?

A few small business concerns certainly present themselves, as owners prepare for some hurdles that come in the way of a successful year.

Looking ahead to 2014, here are a few small business concerns that you will do well to counter if you hope for your small business to succeed.

 1.    Health Care

Without question, health care will remain a concern for small businesses heading into 2014.

Largely due to health care concerns, a recent report found that optimism among small business owners fell to 59 percent in October, where it was as high as 72 percent in the prior month.

While these numbers were affected by the government shutdown, health care remains a big concern of small business owners.

As worded in the report by SurePayroll CEO and President Michael Alter, “the only thing that’s certain about health care reform right now is that it’s causing more uncertainty.”

As the dust settles heading into a new year, small business owners will need to grapple with the implications of health care reform.  Business owners will need to understand and react to how it will affect their business.

Many owners would do well to take this matter seriously.

If these changes are not understood, it would be a smart move to consult with a professional on the business’ options moving forward.

2. The Economy

Indeed: the economy could easily land on any year’s list of small business concerns.  It is clear that 2014 is not bucking the trend.

Based on the previous report, year-over-year nationwide hiring is down 1.7 percent, while paychecks are down 0.1 percent.  While the West (down 2.5 percent), Midwest (down 3.0 percent), and Northeast (down 4.1 percent) were not positive, the South is the only region where hiring is up – at 1.3 percent.

As you might expect, there is not simple solution for dealing with economic difficulties at the small business level.

Savvy budgeting and planning will need to take place, with a careful eye towards difficult areas like health care and insurance.

3.    Taxes

In a recent article from the Washington Post, tax reform is said to target small business concerns.  Yet, as the headline asks, “will it matter?”

With criticisms of the current rate structure and the overall code, there are plenty of hurdles that must be overcome.  Small business owners are awaiting the changes that will occur with tax reform, in order to react and – hopefully – enjoy any benefits that come from its developments.

Similar to the subject of health care, small business owners are advised to stay abreast of relevant changes.

Finding a professional that can be trusted can be an invaluable step towards staying on top of any and all relevant changes.

As a small business owner, what has you most concerned as we head into 2014?

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About the Author: Brian Neese is an author that specializes in content marketing, social media, and SEO.  He writes about technology, how to be first on Google, marketing, much more.

Save on Taxes by Making Wise Choices During Open Enrollment at Work

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By Sharita Hutton

When it comes to tax-deferred accounts for health expenses, most taxpayers get it all wrong. A recent Fidelity survey shows that nearly 3 in 4 incorrectly think employer-provided health savings accounts and flexible spending accounts are virtually the same thing. H&R Block (NYSE: HRB) knows this misunderstanding causes many to miss out on a chance to pay less in taxes because contributions to these accounts are not taxed. Before checking off the same boxes they do every year during open enrollment for health benefits at work, taxpayers who have access should consider these accounts.

How much money? A $2,000 annual ($166 monthly) contribution to health savings account or a flexible spending account could save a taxpayer in the 25-percent tax bracket $500 in taxes (contribution × marginal tax rate = tax savings).

The money contributed to either type of account must be spent on qualified medical expenses, which include eyeglasses, contact lenses and prescribed medication. Also, appointments with doctors – for general preventative checkups, appointments with specialists and visits when not feeling well – are among the eligible expenses. All these routine expenses can add up quickly; out-of-pocket costs for a family of four were expected to average $3,600 in 2013, according to the 2013 Milliman Medical Index.

Not going to the doctor when sick could save money, just like wearing outdated prescription glasses and only taking half as much medication as prescribed, but none of these are advisable ways to save on health care expenses. Here is some information taxpayers can use to determine if a health savings account or a flexible spending account could help them save money.

Health savings account gives opportunity for long-term saving

As with other savings accounts, the money in a health savings account can stay in the account indefinitely, allowing the account holder to save for future medical needs. Funds used for qualified expenses can be withdrawn tax-free, and interest earned on the account is tax-exempt. Here are some of the participation rules:

The taxpayer must participate in a high-deductible health plan

  • High-deductible is defined as at least $1,250 deductible for self-only coverage and $2,500 for a family
  • Plan must not pay benefits until deductible is reached

(There are exceptions for preventive care and certain permitted benefits, such as dental expenses)

The maximum contribution for 2014 is $3,300 for self-only coverage and $6,550 for a family

  • An additional $1,000 may be contributed for taxpayers who are at least 55 years old.

Flexible spending account money must be used by deadline or it will be lost.

Unlike with health savings accounts, the money contributed to a flexible spending account must be used by the end of the plan year or grace period, or it will be lost. Up to $2,500 may be withheld from gross income for contributions to flexible spending accounts.

Just like other elections made during open enrollment for benefits, decisions about these accounts cannot be changed before the next annual enrollment period, unless an employee has a qualifying event. Among qualifying events are birth, divorce, marriage, death and loss of benefits from another source (e.g., a spouse losing a job).

Some retirement options selected during open enrollment also have pre-tax benefits

Another option for pre-tax savings that happens as part of open enrollment in the workplace is selecting retirement savings plans. The average retirement span is 18 years and 80 percent of people ages 30-54 don’t think they will have enough money put away for their retirement. A good first step in saving for retirement is to make pre-tax contributions to a 401(k). Because these contributions are made with money that has not been taxed, the amount contributed reduces taxable income and that can potentially reduce the overall tax bill. Also, retirement savings grow tax-free.

For more information about health savings accounts and flexible spending accounts, saving for retirement or advice on other ways to reduce tax liability, contact an H&R Block tax professional. To find the nearest H&R Block office, visit www.hrblock.com or call 800-HRBLOCK.