Top Four Year-End IRA Reminders

IRS Special Edition Tax Tip 2014-24, December 9, 2014

Individual Retirement Accounts are an important way to save for retirement. If you have an IRA or may open one soon, there are some key year-end rules that you should know. Here are the top four reminders on IRAs from the IRS:

1. Know the limits.  You can contribute up to a maximum of $5,500 ($6,500 if you are age 50 or older) to a traditional or Roth IRA. If you file a joint return, you and your spouse can each contribute to an IRA even if only one of you has taxable compensation. In some cases, you may need to reduce your deduction for traditional IRA contributions. This rule applies if you or your spouse has a retirement plan at work and your income is above a certain level. You have until April 15, 2015, to make an IRA contribution for 2014.
   
2. Avoid excess contributions.  If you contribute more than the IRA limits for 2014, you are subject to a six percent tax on the excess amount. The tax applies each year that the excess amounts remain in your account. You can avoid the tax if you withdraw the excess amounts from your account by the due date of your 2014 tax return (including extensions).
   
3. Take required distributions.  If you’re at least age 70½, you must take a required minimum distribution, or RMD, from your traditional IRA. You are not required to take a RMD from your Roth IRA. You normally must take your RMD by Dec. 31, 2014. That deadline is April 1, 2015, if you turned 70½ in 2014. If you have more than one traditional IRA, you figure the RMD separately for each IRA. However, you can withdraw the total amount from one or more of them. If you don’t take your RMD on time you face a 50 percent excise tax on the RMD amount you failed to take out.
   
4. Claim the saver’s credit.  The formal name of the saver’s credit is the retirement savings contributions credit. You may qualify for this credit if you contribute to an IRA or retirement plan. The saver’s credit can increase your refund or reduce the tax you owe. The maximum credit is $1,000, or $2,000 for married couples. The credit you receive is often much less, due in part because of the deductions and other credits you may claim.

Ellen Goes Holiday Shopping at Target (and hilarity ensues!)

So we have never seen Ellen at the Glenbrook Target, but we did see the Oak  Ridge Boys at Cafe Rakka once!

Year End Tax Planning

Lower that tax bill!

Oh the weather outside is frightful, and so is tax planning delightful……wait, that’s not how it goes.

Well, tax planning can be delightful if you are able to lower your tax bill.

So as you get close to the end of 2014, you may want to take a good long look at what you may owe in taxes.

Below are some ways to lower your tax bill for this year:

1. Defer income – No, that’s not crazy talk.  This can lower your taxable income, if you are able to pull this off.  

You can delay billing or simply ask a few clients to pay you in January.  Quick note: don’t do this this with chronic late payers.  They do not need any additional motivation to pay late.

Keep in mind you will owe taxes on the money you push into the next tax year. 

2. Accelerate expenses – You can also hurry up expenses that can reduce the taxable amount. You can pay business expenses, such as professional membership dues, office supplies, and/or insurance or buy equipment, such as furniture, machinery, and/or computers to accomplish this.

Make sure these expenses meet IRS standards of being ordinary and necessary.  Granite countertops in your home, probably won’t count.

3. Stash cash for retirement – Unless you want to run this business forever, you need to think about retirement.  Entrepreneurs have several options when it comes to retirement plans.

There is IRA’s, SEP IRA’s, Simple IRA’s, Individual 401k’s, and a few other plans available.  Make sure to consult with your CPA and financial advisor, before selecting one.

*Disclaimer – Make sure you contact your CPA, before making any decisions on lowering your taxable income.  A good income projection will go a long way in determining which, if any of the previous methods are right for you.

Happy Holidays (yes, we include Festivus) from Hardee Accounting!

What Did and Did Not Work in 2014

As 2015 approaches, we often get caught up in the hustle and bustle (what is bustle anyways?) of the
holiday season and year end tax planning.  However, this is also a good time to take a step back from your business and assess what went well and not so well for this year.

Things to think about:

1. What was our best seller for 2014?  Did the customers like it and were we good at it?
2. What was the most profitable items and what were the least profitable items in 2014?
3. What are the cool kids in my industry planning for 2015?  Is there a trend that can affect my business and what technology is emerging?  For example, even though Kim Kardashian is still on Blackberry, it may not be the thing to stick with in your business. Or Aol.  Or that giant fax machine in the corner of your office.
4. What is your big goal for 2015?  Do you have a revenue goal, profit goal, or have a number of new customers that you would like to obtain?

It's cliche to say the definition of insanity is to do the same thing over and over and expect a different result, however, it is also correct.

Here's to a fantastic 2015!

One more reason to like Intuit (makers of QuickBooks)

Funding of cool commercials that are out to inspire the next generation of female engineers! Yes, we are accountants and this aired during the Super Bowl, but it is still cool.

Still Time to Act to Avoid Surprises at Tax-Time

IRS Special Edition Tax Tip 2014-21, October 23, 2014

Even though only a few months remain in 2014, you still have time to act so you aren’t surprised at tax-time next year. You should take steps now to avoid owing more taxes or getting a larger refund than you expect.  Here are some actions you can take to bring the taxes you pay in advance closer to what you’ll owe when you file your tax return:

• Adjust your withholding.  If you’re an employee and you think that your tax withholding will fall short of your total 2014 tax liability, you may be able to avoid an unexpected tax bill by increasing your withholding. If you are having too much tax withheld, you may get a larger refund than you expect. In either case, you can complete a new Form W-4, Employee's Withholding Allowance Certificate and give it to your employer. Enter the added amount you want withheld from each paycheck until the end of the year on Line 6 of the W-4 form. You usually can have less tax withheld by increasing your withholding allowances on line 5. Use the IRS Withholding Calculator tool on IRS.gov to help you fill out the form.
  
• Report changes in circumstances.  If you purchase health insurance coverage through the Health Insurance Marketplace, you may receive advance payments of the premium tax credit in 2014. It is important that you report changes in circumstances to your Marketplace so you get the proper type and amount of premium assistance. Some of the changes that you should report include changes in your income, employment, or family size. Advance credit payments help you pay for the insurance you buy through the Marketplace. Reporting changes will help you avoid getting too much or too little premium assistance in advance.
  
• Change taxes with life events.  You may need to change the taxes you pay when certain life events take place. A change in your marital status or the birth of a child can change the amount of taxes you owe. When they happen you can submit a new Form W–4 at work or change your estimated tax payment.
  
• Be accurate on your W-4.  When you start a new job you fill out a Form W-4. It’s important for you to accurately complete the form. For example, special rules apply if you work two jobs or you claim tax credits on your tax return. Your employer will use the form to figure the amount of federal income tax to withhold from your pay.
  
• Pay estimated tax if required.  If you get income that’s not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, or rent. If you expect to owe a thousand dollars or more in tax, and meet other conditions, you may need to pay this tax. You normally pay the tax four times a year. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax.

For more see Publication 505, Tax Withholding and Estimated Tax. You can get it and IRS forms on IRS.gov, or call 800-TAX-FORM (800-829-3676) to get them by mail.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media and subscribe to IRS Tax Tips or any of our e-news subscriptions.

Low Cost Ways to Reward Employees

It is the thankful time of year.  And we have so many things to be thankful for, such as family, friends, and Netflix (we love some binge watching!)

One of the things we are most grateful for here at Hardee is our staff.  Why?  Because they are the best!  We have awesome employees who care about our customers and each other. 

Unfortunately, 70% of American workers are not reaching their full potential, 52% are not engaged, and another 18% are actively disengaged.

So how do you engage and reward employees?  Here at Hardee, we do a lot of little things like house beverages at our favorite local coffee shop, auto detailing, hand-written notes, and the occasional lunch.  And it works like a charm!

So what are some ways you can reward your employees without breaking the bank?

A little money

·         Gift Cards – People will work harder for a $25 gift card to their favorite restaurant than they will for $25 in cash.  Consider rewarding employees for reaching goals.  Consult your CPA on tax implications.

·         Let your staff decide on a training event – Training is one of the most overlooked ways to reward employees.   Allow them the opportunity to select the type of training they feel like they need and you give the time off to do it.  The employee receives a sense of empowerment and improved skill set and you get a more productive and happier employee.

No money

·         Offer public praise – We always take the time to correct an employee when they are doing something wrong, but how about taking a minute and offering the employee praise when they are doing something right?  Public praise can go a long way toward improving an employee’s confidence and can also motivate other employees.

·         Offer flex time – If you work in an industry where flex time is an option, you should strongly consider this.  Flex time gives employees a sense of empowerment and an opportunity to get their work done during times that may work better for them. 

Funsies

·         Wash their car with everyone watching – You don’t have to hire a mobile auto detailer to come to your business to wash cars.  You can do it!  Ok, not everyone’s car, but you can have a contest for the employees and the winner gets the boss to wash their car.  Embarrassing?  Yes!  Fun, free, and good for morale?   A bigger yes!

News Anchors Do Elaborate Dance Routine During Commercial Break

And this is how we feel after finishing tax extension deadlines!

Make a Mistake? Amend Your Tax Return

Summertime Tax Tip 2014-24, August 27, 2018

Don’t worry if you made a mistake on your tax return or forgot to claim a tax credit or deduction. You can fix it by filing an amended return. Here are 10 tips that you should know about amending your federal tax return:

1. When to amend.  You should amend your tax return if you need to correct your filing status, the number of dependents you claimed, or your total income. You should also amend your return to claim tax deductions or tax credits that you did not claim when you filed your original return. The instructions for Form 1040X, Amended U.S. Individual Income Tax Return, list more reasons to amend a return.
   
2. When NOT to amend.  In some cases, you don’t need to amend your tax return. The IRS usually corrects math errors when processing your original return. If you didn’t include a required form or schedule, the IRS will send you a request for the missing item.
   
3. Form to use.  Use Form 1040X to amend a federal income tax return that you previously filed. Make sure you check the box at the top of the form that shows which year you are amending. Since you can’t e-file an amended return, you’ll need to file your Form 1040X on paper and mail it to the IRS.
   
4. More than one year.  If you file an amended return for more than one year, use a separate 1040X for each tax year. Mail them in separate envelopes to the IRS. See "Where to File" in theinstructions for Form 1040X for the correct address to use.
   
5. Form 1040X.  Form 1040X has three columns. Column A shows amounts from the original return. Column B shows the net increase or decrease for the amounts you are changing. Column C shows the corrected amounts. You should explain what you are changing and the reasons why on the back of the form.
   
6. Other forms or schedules.  If your changes involve other tax forms or schedules, make sure you attach them to Form 1040X when you file the form. Failure to do this will cause a delay in processing.
   
7. Amending to claim an additional refund.  If you are waiting for a refund from your original tax return, don’t file your amended return until after you receive the refund. You may cash the refund check from your original return. Amended returns take up to 12 weeks to process. You will receive any additional refund you are owed.
   
8. Amending to pay additional tax.  If you’re filing an amended tax return because you owe more tax, you should file Form 1040X and pay the tax as soon as possible. This will limit any interest and penalty charges.
   
9. When to file.  To claim a refund, you generally must file Form 1040X within three years from the date you filed your original tax return. You can also file it within two years from the date you paid the tax, if that date is later than the three-year rule.
   
10. Track your return.  You can track the status of your amended tax return three weeks after you file with ‘Where’s My Amended Return?’ This tool is available on IRS.gov or by phone at 866-464-2050.

Visit IRS.gov to get Form 1040X or call 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

4 Tips for Surviving Scary Situations

Ah, Halloween. A great excuse for dressing up like a princess, stuffing our children into pumpkins, and of course, eating lots and lots of candy. And since it is that time of year, let’s look at some scary situations that may arise in your business.


1. Eat that Frog - From Mark Twain, via Brian Tracy; Mark Twain once said, “If the first thing that you do when you wake up in the morning is to eat a live frog, you’ll have the satisfaction of knowing that’s probably the worst thing that’s going to happen to you all day long.”

Okay, so you may not want to eat a live frog; however, don’t ruin an entire work day by procrastinating. If you have a tough phone call to make, collections that need to be made, or have an employee to discipline, get it done first thing. The rest of the day will be easy after that.

2. Interview questions – So you are ready to make that new hire, but you aren’t sure what questions you can ask because you think the Human Resource Police will get you?

Fear not, entrepreneur! You can check out the do’s and don’ts of interview questions from monster.com, here. Monster.com….you get it….because of Halloween? Yep, we thought it was clever, too.

3. Networking – One of, if not the biggest source of business for entrepreneurs, is referrals. Then why do so many entrepreneurs put off networking? Because it can be scary! You are filled with a room of strangers and you don’t know what you should do.

Don’t worry. They are just like bees. They are more afraid of you than you are of them. Or is that snakes? Anyway, you can be successful by having an elevator pitch handy, listening intently to what the other person is telling you, and simply collecting a few business cards.

4. Reading an Income Statement – Do you ever pick up an income statement and feel like you are playing a game of “Where’s Waldo”? There are a lot of numbers and it can be a little overwhelming.

Key things to look at are how you compare to your year-to-date numbers from last year, how much you are spending on expenses compared to other businesses in your industry, and if you are making enough profit.

And as always, you can always consult your favorite CPA firm for any assistance!

QuickBooks Tip - Perform Simple Calculations in Any Number Field

Did you know that in many input forms within Quickbooks (bills, checks, invoices, etc.), that you can make simple calculations in any number field?  No?  Oh you are missing out.  We just love this.  But we love numbers too, so we may just be weird cool that way.

So, if you’re creating an invoice/bill/check/whatever and you need to quickly add, subtract, multiply or divide, you can highlight the field you want to use and quickly make the calculation.

Let's say to add, enter the first amount, then press the “+” key. Continue adding each number followed by the “+” key. After you’ve entered the last number, press the “Enter” key to total your numbers and put the total figure in your amount.

This is much easier than switching back and forth between your calculator and the open QuickBooks screen.

Tell your old tape calculator we never meant to hurt it.  It's not them, it's us.

Kid President's 20 Things We Should Say More Often

Love us some Kid President.

Fun Fact - He is from Henderson, TN.  Not Hendersonville, TN, but close enough.

Miscellaneous Deductions Can Cut Taxes

IRS Tax Tip 2014-19, August 15, 2014

You may be able to deduct certain miscellaneous costs you pay during the year. Examples include employee expenses and fees you pay for tax advice. If you itemize, these deductions could lower your tax bill.  

Here are some things the IRS wants you to know about miscellaneous deductions:

Deductions Subject to the Two Percent Limit.  You can deduct most miscellaneous costs only if their total is more than two percent of your adjusted gross income. These include expenses such as:

• Unreimbursed employee expenses.
• Expenses related to searching for a new job in the same line of work.
• Certain work clothes and uniforms.
• Tools needed for your job.
• Union dues.
• Work-related travel and transportation.

Deductions Not Subject to the Two Percent Limit.  Some deductions are not subject to the two percent limit. They include:

• Certain casualty and theft losses. Generally, this applies to damaged or stolen property that you held for investment. This includes items such as stocks, bonds and works of art.
• Gambling losses up to the amount of your gambling winnings.
• Losses from Ponzi-type investment schemes.

There are many expenses that you can’t deduct. For example, you can’t deduct personal living or family expenses. You claim allowable miscellaneous deductions on Schedule A, Itemized Deductions.

For more about this topic see Publication 529, Miscellaneous Deductions. You can get it on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

I Always Break-Even. Or Do I?

One person that knows if he is breaking-even is Jerry Seinfeld.  Well, at least the TV version of Jerry does.  Case in point, in one episode of Seinfeld, Jerry loses a stand-up gig and minutes later he gets another gig.  Then, he loses a $20 bill and finds another $20 in his old coat pocket.  Lastly, his usually down-and-out friend George starts seeing some success, and his usually successful friend Elaine becomes down-and-out.  Everything seems to even out for Jerry or in business terms, Jerry always hits break-even.

Break-even is the point in your business where you are generating enough revenue to pay all of your expenses.  Knowing your break-even point is one of the most important pieces of information that a business owner should know.  Whenever we talk to some of our clients, we find out they do not know what their break-even is.  They feel like they have a “round-about idea of what it is”.  However, this is not good enough to make significant business decisions, such as, purchasing inventory, hiring your next employee, or selling a new product or service. 

Let’s look at the most simple way to figure out your break-even:

Breakeven = Fixed Costs (FC)/Gross Margin (GM)%

Fixed costs are any costs that your business incurs whether you make money or not, such as, rent, utilities, insurance, payroll, etc.

Gross margin percentage is what you make after you pay immediate expenses associated with the product or service you offer.   This could be materials to make the product, payroll for the service, and even other costs associated with creating or delivering the product or service. 

Let’s take a look at the example below to calculate break-even for Miss Natalie’s Sandwich Shop. 

Fixed Costs = $5,000

Rent, utilities, insurance, payroll, etc.

Gross Margin% = 70%

Inventory (food and drinks)

Break Even = $5,000/70% = $7,143

This means that Miss Natalie’s Sandwich Shop has to make $7,143 every month just to pay the bills.  So, let’s take this a step further.  How many sandwiches will Miss Natalie’s Sandwich Shop have to sell to break-even?  Divide the break-even point by average sales price per sandwich.  In this case, the break-even is $8,000 and the average service fee is $5 per sandwich.  

$7,143/$5 = 1,429 sandwiches

This means it will take 1,429 sandwiches a month to break even.  Breaking this down even further, this means she needs to sell approximately 48 sandwiches every day.  Whew that’s a lot of bread, deli meat and cheese!   Knowing her break-even will give Natalie with the information she needs to be successful in making business decisions, such as pricing, when it is time to hire more personnel, marketing needs, etc.

This is Cute!!! - 4 year old learns about deleting photos, is heartbroken

And this exactly how business owners feel, when their computer crashes and they realize they didn't back up QuickBooks!

IRS Withholding Calculator

Tired of trying to figure out why you have to pay in so much at the end of the year, or even, tired of trying to figure out how NOT to give the IRS an interest-free (you are getting a large refund) loan?  Check out this 2 minute video to learn how to use the IRS Withholding Calculator.

Do You Have Employees or Contractors?

    Employee, contractor, tomato, tomatho, potato, potatho, let's call the whole thing off!  Okay, so it sounds a lot cuter when Fred Astaire and Ginger Rogers do this, but we have a lot of our clients that seem to get employees and contractors confused.  And some of them do this because they want to avoid paperwork, taxes, overtime, and other headaches that can come with having employees.  This becomes an issue, with the IRS, since they have reason to believe that not all contractors pay their taxes appropriately.

    However, it is not up to the employer to choose one over the other.  The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax and they have to take care of that personally.

Below are the general characteristics of employees and independent contractors:

Independent Contractor ·         Free from direction and control ·         Has necessary skills and training to complete job ·         Has a business location ·         Performs services for multiple customers ·         Sets own hours ·         Determines own price for contracted services ·         Not eligible for employee benefits ·         Provides equipment and tools used to complete job ·         Supplies materials needed to do job ·         Personally liable for errors and/or accidents ·         Files self-employment taxes ·         Has right to hire and fire workers ·         Must legally complete each contract

Employee ·         Means and manner of work are (or can be) controlled by employer ·         May be trained by employer to perform job ·         May work at employer’s business location ·         Works for one employer, may serve that employer’s customers ·         Hours set by employer ·         Accepts wage, salary, or commission determined by the employer ·         Employer may provide and control equipment and tools ·         Employer may purchase materials and supplies ·         Employer liable for employee errors and/or accidents ·         Is hired and can be fired by employer ·         May quit working for an employer at any time ·         Employer may require specific attire to be worn while at work such as a uniform or shirts with company logo

So if looks like a duck, waddles like a duck, and quacks like a duck, don’t call it a contractor.  To avoid these types of issues give a us call or email.

Entrepreneurs are Not Fully Utilizing Their Accounting Tools

   We have received client's books every way conceivable.  We have gotten several old shoe boxes full of receipts, paper bags full of invoices, and even a laundry basket full of laundry (maybe that one was not accounting related though.)

  

  While we are always very, very, very happy to take these piles of paper and make accounting magic with them, we still strongly advise clients to start taking advantage of accounting software and apps.

From, (http://www.godaddy.com/news/article/small-business-owners-not-taking-advantage-of-technologies-that-save-time-money-during-tax-time.aspx)

  This survey reveals some of the issues we are referring to:

•Almost half (46 percent) of small business owners reported they do not work with an accountant.

•Of those small business owners who do work with an accountant, 47 percent see their accountant once a year at tax time or only when they have a question or need help.

•In the last 12 months, nearly a quarter of small business owners said they had lost track of whether a customer has paid them or not, or could see it happening in the future.

•32 percent of small business owners do not set aside money throughout the year to pay income taxes.

•12 percent of small business owners have no idea how much they will owe in income taxes, while 74 percent reported that they usually know the “ballpark” of what they owe, while just 15 percent know exactly how much they owe.

   By using accounting software like QuickBooks and Peachtree or using apps like Wave or Freshbooks, an entrepreneur can see can keep track of who owes them money, know how much they will owe in taxes, and sleep better at night in general.

   Give us a call or email for any suggestions to help your business start taking advantage of one of these tools or even provide you the training (QuickBooks specifically) to make it happen.

Sheldon, from the Big Bang Theory, knows that CPA's are the life of the party!

CPA, CPA, CPA

What to do if You Get a Notice from the IRS

IRS Summertime Tax Tip 2014-01, July 2, 2014

Each year the IRS mails millions of notices. Here’s what you should do if you receive a notice from the IRS:

1. Don’t ignore it. You can respond to most IRS notices quickly and easily. And it’s important that you reply promptly.
   
2. IRS notices usually deal with a specific issue about your tax return or tax account. For example, it may say the IRS has corrected an error on your tax return. Or it may ask you for more information.
   
3. Read it carefully and follow the instructions about what you need to do.
   
4. If it says that the IRS corrected your tax return, review the information in the notice and compare it to your tax return.
   
   If you agree, you don’t need to reply unless a payment is due.
   
   If you don’t agree, it’s important that you respond to the IRS. Write a letter that explains why you don’t agree. Make sure to include information and any documents you want the IRS to consider. Include the bottom tear-off portion of the notice with your letter. Mail your reply to the IRS at the address shown in the lower left part of the notice. Allow at least 30 days for a response from the IRS.
5. You can handle most notices without calling or visiting the IRS. If you do have questions, call the phone number in the upper right corner of the notice. Make sure you have a copy of your tax return and the notice with you when you call.
    
6. Keep copies of any notices you get from the IRS.
   
7. Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS first contacts people about unpaid taxes by mail – not by phone. The IRS does not contact taxpayers by email, text or social media about their tax return or tax account.

For more on this topic visit IRS.gov. Click on ‘Responding to a Notice’ at the bottom left of the home page. Also see Publication 594, The IRS Collection Process. You can get it on IRS.gov or call 800-TAX-FORM (800-829-3676) to get it by mail.

Additional IRS Resources:

• Tax Topic 651 - Notices – What to Do
• Tax Topic 652 - Notice of Underreported Income – CP-2000
• Tax Topic 653 - IRS Notices and Bills, Penalties and Interest Charges

Should We Keep Score in Little League Games?

   You often hear the debate among parents about keeping score in Little League. Some parents say there is no need in it, since the kids are just having fun and learning to play the game. Other parents say that kids need to learn the value of hard work and skill paying off.  

   You would think with four mothers at Hardee Accounting, we would just like for our kiddos to have fun and not worry about winning or losing, right?  Wrong!   We are accountants.

We.  Keep. Score.

   We also think that keeping score or bookkeeping in your business is crucial. Unfortunately, we see many business owners taking the advice of the first set of parents.

   Here are 4 very good reasons for accurate bookkeeping in your business.

1. Paying Uncle Sam – One of the quickest ways to become extinct is to have inaccurate bookkeeping records.  That will cause you to fall behind tax deadlines and even pay too much in taxes. And with 20 – 40 tax deadlines throughout the year, accurate bookkeeping records are essential.
2. Freaking cash flow – Cash flow is the life blood of any business.  You can have a negative number at the bottom of your Profit and Loss statement, but not the Cash Flow Statement.  It must be positive and if not, that equals game over.  Not having accurate bookkeeping can easily result in not having cash flow.  This is one of the top reasons that businesses do not survive. 
3. Controlling expenses – Accurate bookkeeping lets you know where your money is going.  Also, your accountant can help you compare your expenses to other businesses in your industry, to see how close you are to them.  This tells you if you are high or low in particular areas.
4. Growing the business –It’s hard to see if you are growing your business without knowing how much money you are making and spending.  This would be like trying to double the size of your brownie recipe, without having the proper measurements of the first set of brownies.

   So how will you keep score?  You can buckle down and do it, hire another employee to do it, or you can outsource it.  What matters most, is that it is accurate and timely.

3 Routines That Make Your Life Harder

           We have been on quite the exercise kick here at Hardee.   Some of us have been bootcamp mamas others have been making the most of their gym memberships.  The routines we create can help us get into better shape.  The same goes with your business.  

     There are also some bad routines that can make your business more difficult to run and your life much harder.

1. Letting your cash flow do its own thing - Have you ever looked at your Profit and Loss statement and felt good, only to look at your bank account to feel bad?    This is a cash flow issue.  Make sure you are entering all transactions into an accounting system and keep an eye on cash flow.
2. Keeping your prices too low - Most small business owners think they need the lowest price possible to compete.  In fact, quite the opposite can be true.  People will pay for things they want.   So, if you haven't had a price raise in the last year, it is probably time do so. This will get rid of the bottom 2% of customers that take up 20% of your time and it will also raise your revenue by 5%-10%!
3. Not meeting with your accountant – You know how you find time to regularly go to the doctor?  Put your accountant on that same schedule.  Most business owners assume they only need their accountant during tax season.   A good accountant can assist you year-round and they will always save you more money than they cost.