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.

Contractor vs Employee: Pros & Cons

This is something a lot of businesses have questions about.  Let's see what Rhonda Abrahms (super smart lady) has to say.

Keep Your Records Safe in Case Disaster Strikes

IRS Special Edition Tax Tip 2014-15, June 5, 2014

Some natural disasters are more common in the summer. But major events like hurricanes, tornadoes and fires can strike any time. It’s a good idea to plan for what to do in case of a disaster. You can help make your recovery easier by keeping your tax and financial records safe. Here are some basic steps you can take now to prepare:

1. Backup Records Electronically.  Many people receive bank statements by email. This is a good way to secure your records. You can also scan tax records and insurance policies onto an electronic format. You can use an external hard drive, CD or DVD to store important records. Be sure you back up your files and keep them in a safe place. If a disaster strikes your home, it may also affect a wide area. If that happens you may not be able to retrieve your records.
2. Document Valuables.  Take photos or videos of the contents of your home or business. These visual records can help you prove the value of your lost items. They may help with insurance claims or casualty loss deductions on your tax return. You should store them with a friend or relative who lives out of the area.
3. Update Emergency Plans.  Review your emergency plans every year. Update them when your situation changes. Make sure you have a way to get severe weather information. Have a plan for what to do if threatening weather approaches.
4. Get Copies of Tax Returns or Transcripts.  Visit IRS.gov to get Form 4506, Request for Copy of Tax Return, to replace lost or destroyed tax returns. If you just need information from your return, you can order a free transcript online or by calling 800-908-9946. You can also file Form4506T-EZ, Short Form Request for Individual Tax Return Transcript or Form 4506-T, Request for Transcript of Tax Return.
5. Count on the IRS.  If you fall victim to a disaster, know that the IRS stands ready to help. You can call the IRS disaster hotline at 866-562-5227 for special help with disaster-related tax issues.

Visit IRS.gov to get more about IRS disaster assistance. Click on the ‘Disaster Relief’ link in the lower left of the home page. You can also get forms and publications anytime on IRS.gov. To get them in the mail, call 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Preparing for a Disaster
• Publication 584, Casualty, Disaster and Theft Loss Workbook
• Publication 583, Starting a Business and Keeping Records

IRS YouTube Videos:

• Preparing for Disasters – English | Spanish | ASL

IRS Podcasts:

• Disaster Assistance – English | Spanish

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Yo-Yo Dieting

   It’s finally summertime!  The grills are going, pools are open, and it is time to show off our new summer wear.  We feel good and we look good.  And we should.  We have been killing it at the gym and drinkinggreen smoothies since January.  This seems to be a pattern among a lot of people that realize the holidays were not too kind to their waistlines and they want to fix it ASAP.  Then before you know it summer is over and we are back in full the holiday cram fest, just to find us back in the same shape we were last year.

To be truly healthy we have to adopt a lifestyle change and quit yo-yo dieting.  Simple things to fix this issue are:

• Eating more raw fruits and veggies
• Taking walks and doing more fun outdoor activities
• Avoiding most processed foods

   Did you know that the same goes with ourbusinesses?  Sometime during the year we realize revenue is down, employees are turning over, and our market share is slipping.  So we go into crash diet mode.  We attend every networking event, cram employee training in every available moment, and visit our lovely CPA to fix this issue.  And at first it works!  Revenue increases, employees seem happier, and there is money in the checking account.  But before long, we take our foot off the gas, because we get worn with networking and training, we are attracting the wrong customers, and there are new fires to put out. 

Yo-yo dieting does not work for our health and it does not work for our business.  Simple things to fix this issue are:

• Creating a marketing plan for each quarter of the year and sticking to it
• Scheduling employee training and fun events for your business
• Meeting with your CPA  2 – 3 times a year to review your financial statements and potential problem areas