Wow, it's now October!  I'm reluctant to see summer leave, but the first crisp days of autumn refresh me.  The cool air replenishes my energy to pursue new projects, or pull the old ones off the shelf and breath new life into them.   The world looks different in the fall sunlight and I see possibilities at each turn.  It gets light later and dark earlier and that instills an urgency to get things done.  I'm more productive in the daylight, so my work time is compressing as the days grow shorter.  Hurry, hurry!  Opportunities await!

My newsletter and blog have been on hiatus this summer, but the fall has inspired me to write again.  I'll be seeing you!

The sky this morning was ominous but pink clouds provided the backdrop for a rainbow that arched over the town.  I smiled at God's work as I drove to a CPA educational meeting for the morning.  A morning of mixed blessings?

Unknown- Quotes on Creativity from The Thatcher Hoffman website

When you can see what everybody else has seen but be thinking what nobody else has thought, you will have discovered your creativity.

In creativity there is as much, if not more, to be gained from the journey as there is from reaching the destination.

Things are there to be tried, and unless we try them how will we ever get to know whether or not they work?

We carry with us at any time the most sophisticated piece of technology that exists - the human mind. It is this that dreamed up and made possible everything from the safety pin to interplanetary travel.

Every failure contains hidden assets. If one can face up to it and study it imaginatively, it will provide the raw information for new creativity. 

With each new creative departure, one should leave with two pieces of luggage - the desire to have fun, and the desire to discover as much as possible along the way.

Have you signed up for The Hope Chest monthly newsletter?  Don't miss out on this MUST HAVE subscription!  Click here to sign up today! 

Product Description  The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream! Use this book if you: a) want to start a service business; b) will operate from your home or a small office; and c) estimate that start-up costs are modest.

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.

An excerpt from Find The Numbers For Your Business Plan ...

JOE ENTERS THE KITCHEN and hangs his keys on the hook by the back door. “The boss called everyone into the conference room today. He’s merging the company with MegaAdvertising. I was Mac’s first employee, and now after fifteen years, he’s selling out. Just like that. It’s effective in ninety days.”

Kathy glances at him from behind stacks of boxes of Girl Scout Cookies® that she and nine-year-old Susan are sorting to deliver to the neighbors.

“The new company will offer us all jobs, but the closest office is the next town over. I know Jack and Anne who work there, and they put in a lot of hours. I don’t like the sound of that, plus adding twenty minutes to my drive each way. They haven’t talked to us yet about money either—I don’t know.”

Kathy pulls the sleeve of cookies from a box of Thin Mints, and offers it to Joe. “What else did he say? Do you think your clients will be happy with this news?”

“That’s the other thing. MegaAdvertising works only with big companies. I guess we’ll finish the projects we have and then they’ll cut my clients loose.”

Joe savored the minty chocolate cookie—a once-a-year reward for having an entrepreneurial daughter. Again this year, Susan sold more cookies than any other girl in her troop, and won a trip for the family to a local theme park.

 “Daddy, that doesn’t sound fair. Why aren’t your clients important to that big company?” Susan frowned. “I know they are important to you because you get so excited when they like the things you draw for them. Remember the poster you did for the animal hospital when it opened? You know…the one with dog and cat noses? They looked like they were sniffing the camera! That was cool!”

“She’s right, Joe. You do care. You’re proud of the work you do for them.”

“I know, Daddy. Why don’t you just keep making them happy? Let’s start our own business! If I can sell 300 boxes of Girl Scout Cookies®, I can help you sell, too!”

“And, Dad, I can help with the websites! I bet I know as much about that as you do,” yells Sam from the mudroom, where he’s been listening as he took off his cleats from seventh-grade soccer practice.
Kathy and Joe look at their children and then at each other. Joe shrugs his shoulders, raises his left eyebrow, then cocks his head. “You know ... you might have a good idea here.”

Kathy takes a cookie, too. “Let’s all agree to do our homework and see if we can make enough money to keep the two of you in knee pads and scout uniforms.”

“Ugh. . .homework,” the children whine in chorus.

Product Description  The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream!

Use this book if you:
a) want to start a service business;
b) will operate from your home or a small office;
c) estimate that start-up costs are modest

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.

Printing costs have become more reasonable, but you understand that they are probably your largest expense item. Other costs associated with the production of the book include:

Book design - Your cover entices readers to take the book from the shelf, and the interior layout keeps their interest.

Editing - Make sure your facts and your English are correct. Friends and business associates can help, but hire a professional to do the final review.

Permissions - If you use information or pictures not prepared specifically for your book, get written permission from the owner of the copyright for the work. There may be a fee.

Author photo - Your picture goes on the back of the book, so look your best!

An International Standard Book Number (ISBN) and a Bookland EAN bar code are required to identify your book and get it into bookstores and Internet booksellers.

When you self-publish a book, you establish a business, as well. Contact a CPA with small business and publishing experience to guide you through the start-up. The simplest and least expensive form of doing business is a sole proprietorship. Just select a name for your publishing company, check to see if anyone else is using it, and then register it with your local government. Consult your CPA to decide whether a corporation or limited liability company is a better choice.

If you'll work from home, consider a post office box with a regular street address from those companies that provide mailbox and shipping services. It provides an image of a business location, and may save time and money to have everything under one roof.

What about shipping the book? If you'll handle this yourself, buy an initial stock of shipping supplies.

Marketing and publicity costs are another major expense. Buy a domain name for your book and develop a web site. Make it attractive and easy to navigate so browsers will buy, and give them an easy way to pay, for example, an online service like PayPal.

Print business cards, postcards, bookmarks, posters, refrigerator magnets, or other tchotchkes. Be creative to make your book stand out.

Will you travel to sell your book at festivals, bookstores, or special events? Estimate the costs of hotel, food, gas, airfare, etc. A national book tour sounds like fun, but when you estimate the costs, how many books at $12.95 will you have to sell?

Associate with an Internet book retailer advantage program for small publishers, but some require an upfront fee.

Add up the expenses to get your book published (production costs), the initial marketing and publicity expenses, and the business formation costs. Say the total is $8,000 to produce 2,000 books; the per-book cost is $4.00. If you sell the book for $12.95, then $8.95 per book goes to recoup the initial costs. You'll have to sell 894 books to earn back the initial $8,000 you spent - to reach your breakeven point. How long it takes depends on your marketing plan.

Want to change the numbers to see other options? This would be a great place to use a spreadsheet. Set up a workbook with details for all your costs and options. The formulas are very straightforward. It will allow you look at various options such as changing the press run or increasing your marketing budget, and see how that affects your breakeven point.

Finally, remember to pay taxes on your profits. As a sole proprietor, you file and pay taxes as part of your personal tax return. Keep good records of your income and expenses-the information helps you run your business and file your taxes. You're self-publishing your book to maintain creative control. Don't lose the financial control.

Product Description  The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream! Use this book if you: a) want to start a service business; b) will operate from your home or a small office; and c) estimate that start-up costs are modest.

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.

In the last frantic hours before filing your 2010 taxes, don't get so frazzled that you forget about the deductions most frequently missed by taxpayers. It could mean more money in your pocket.

It's easy to get wrapped up in the last minute rush to file, say tax experts at the new Jersey Society of Certified Public Accountants (NJSCPA). http://www.moneymattersnj.com/story.cfm?sid=15336

Click here to use the information from the New Jersey Society of Certified Public Accounts as a checklist to jog your memory and maximize your tax savings this year.

The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream! Use this book if you: a) want to start a service business; b) will operate from your home or a small office; and c) estimate that start-up costs are modest.

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.

How the Tax Laws Can Help Lower Your Education Costs

It’s no secret that sticker shock sets in quickly when you’re looking at education expenses. According to the College Board, the price for yearly tuition alone can range from nearly $8,000 for in-state students at public four-year colleges to an eye-popping $35,000 or more at private four-year institutions. And those amounts don’t include the cost of room and board as well as other expenses. The good news is that the tax laws offer a number of opportunities to minimize your out-of-pocket education costs, if you know how to make the most of them. (http://www.moneymattersnj.com/story.cfm?SID=15333)

Click here to see the valuable tips provided by The New Jersey Society of Certified Public Accountants (NJSCPA).

I've heard that I can save on taxes and write off personal expenses by incorporating myself. How should I go about doing this?

This sounds like a question I'd get on a Monday morning from a client who attended a weekend cocktail party. Personal expenses are generally not deductible against business income.

A corporation is a legal entity designed to exist separately from its owners, the shareholders. The corporation, under authorities granted by the state where it's formed, can enter into contracts, pay taxes, sue and be sued. The goal in forming a corporation is to keep the personal activities from commingling with business transactions.

Many businesses incorporate so they can raise capital to expand the business or easily transfer ownership units. For single-owner businesses, the reasons generally involve protecting personal assets and saving taxes, but these advantages come with a price.

Record keeping requirements are more complicated for a corporation. You must maintain a separate bank account, file annual corporate income tax returns, and pay taxes on corporate profits. Even though you're the sole owner of the corporation, you receive salary just like an employee, subject to the same payroll withholding taxes and periodic tax filing requirements.

A regular corporation, known as a C Corporation, usually has the worst tax bite, with top rates at 39%. You pay taxes on the company profits, and then when you take the money out for yourself, you may pay tax on it again, generally as a dividend. If you're counting, that's paying taxes twice. And if you're a professional who incorporated your practice, you're considered a professional service corporation and your first dollar of profit could be taxed at 35%. On the plus side, a C corporation allows for deductions for medical expenses for shareholders under a medical reimbursement plan that isn't available under other types of entities.

You may be able to minimize taxes through electing a status as an S Corporation. Talk to your CPA to see if this option is right for you, and to file documents in a timely fashion to protect the tax advantages.

The S election allows you to report the corporation's profit on your personal tax return. Depending on your personal tax bracket and the company's profits (or losses), good planning could make a difference in your total tax bill. As a shareholder in an S Corporation, you draw a reasonable salary for which you pay Social Security and Medicare taxes. You're entitled to also take a stockholder distribution, which is not subject to the payroll taxes. If done correctly, you can save up to 15.3% (combined rate for Social Security and Medicare taxes) on the amount of the distribution. Be aware that there are limitations on the amount of distribution allowed before triggering other tax implications. This is why you need the help of a tax professional.

A primary reason to incorporate is to remove the risk of loss due to financial obligations or lawsuit from the personal assets of the shareholders. To accomplish that goal, though, you must walk, talk, look, and smell like a corporation. That means you must file all corporate paperwork in a timely fashion, conduct formal meetings of your stockholders and board of directors, and keep minutes of actions taken. Follow these guidelines, and then if a problem arises, you've taken the steps to prove a true corporate existence.

It's not difficult to form a corporation yourself these days. Go online to your state's website to look for the name you want, check to see if it's available, complete the application, pay the fee, and you'll have a corporation within minutes. But what you do next determines the benefits to you. Talk to your CPA and get all the information you need before you set up the corporation. Planning the tax benefits is unique to each individual, so don't make decisions based on what you learn at a cocktail party.

 The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream! Use this book if you: a) want to start a service business; b) will operate from your home or a small office; and c) estimate that start-up costs are modest.

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.

Twenty-year old Trevor Bayne is a household name since he became the youngest guy ever to win the Daytona 500, The Great American Race.  His victory was a feel-good story that created lots of buzz for the new NASCAR season.   I couldn’t help but notice similarities between his burst on the scene and entrepreneurs as we start our businesses.

Top Five Things Trevor Bayne Did Right

• He was prepared to do what he needed to do complete the race – which was his only goal!    He had the skills to take the opportunities that came his way that moved him across that finish line.  Entrepreneurs must also be prepared for their journey to success.

• He sought advice from veteran drivers and listened to them.  How often do we shy from asking others for help because we think it shows weakness?  Mentors are vital to our success, and it’s okay that they are also a competitor.

• Trevor showed confidence, not arrogance.  If you believe in yourself, exuberance often makes up for a lack of experience.

• He kept his sense of humor.  After he won the race, he didn’t know what to do or where to go next!  Sometimes we have to laugh at ourselves because even in times of victory, we can screw things up!

• Trevor was gracious and humbled by his victory.  Saying thank you is always the right thing to do.

Competition on the race track is tough, but there are folks who will help you.  The term “coopetition” was coined during the Daytona 500 to explain the drivers helping each other in the two-by-two drafting to improve the cars’ speeds.  It explains how working with your competitors can get you both to the front of the pack.  Isn’t business the same way?  


 

The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan  (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream! Use this book if you: a) want to start a service business; b) will operate from your home or a small office; and c) estimate that start-up costs are modest.

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.

“My will shall shape my future. Whether I fail or succeed shall be no man’s doing but my own. I am the force; I can clear any obstacle before me or I can be lost in the maze. My choice, my responsibility; win or lose, only I hold the key to my destiny.”

Elaine Maxwell (The Smart Women’s Book of Powerful Quotations by Sheri McConnell)

Are you ready to unlock your destiny? 

The economy is tough, so isn’t this the best time to be in charge of your destiny? Find the Numbers For Your Business Plan  (Full Court Press, 2010) helps you understand your own personal financial situation and allows you to start your business knowing you can make a living while you build your dream! Use this book if you: a) want to start a service business; b) will operate from your home or a small office; and c) estimate that start-up costs are modest.

Follow the case study of the Workman family as they make decisions about starting a small graphics design company. Use the colorful worksheets and straight talk in the book’s 96 pages to help you make good decisions right from the beginning.

Find the Numbers For Your Business Plan is available now in paperback online at Amazon.com and other channels. You can find the book sold in print and eBook format with its companion electronic worksheets at: www.thearcadiangroupcpa.com.