So you have been listening to me and have actually been doing a good job keeping the five to seven years of tax receipts I have recommended. Congratulations! Now you have a different problem – the storage problem! Those receipts take up a lot of space. Short of renting public storage, you just don’t have room for them. Now what? Well, do you have a computer? Do you have a printer that can scan pdfs or software that can create it? If not, it is time to think about getting them! Taking all these documents and storing them on the computer in pdf format is the best way to save all the data without the storage problems. If you need to prove a deduction to the IRS or the state, you just have to find the right document, print it up and give it to the authorities. Just remember a couple of points; setting up a file system on the computer and making backups so if the computer crashes you can recover the data. 1. If you have a PC and use Windows, it is relatively easy to set up a folder system to keep your various deduction and income [...]
Business Musings of a Burbank CPA: Optimize Your Revenue Mix for More Profits in 2014
Many small business owners focus on generating more revenue every year, and that’s a great objective. But not all revenue is created equally. If you sell more than one product or service in your business, then you can benefit from looking at your revenue mix. Although it’s fun to watch our revenues grow, it’s the profit number that really matters. If your expenses grow faster than your profits, then you have a lot of activity going on, but you don’t get to keep as much of what you make, which is what really matters. An insightful exercise to try is to take a look at your revenue mix. Then you can ask “what if?” to optimize your profits. Your Revenue Mix Let’s say you offer three different services: Services X, Y, and Z. Your revenue pie looks like this: X: $1.4 million or 70% of the total Y: $0.3 million or 15% of the total Z: $0.3 million or 15% of the total Total: $2.0 million In this example, Service X is clearly the service making you the most revenue in your business. But is it making you the most profits? The profit you receive from each of these service [...]
Musings of a Burbank CPA: Year-End Family Business Strategy and Preparation
So your family business has been going strong – now is the time for some reflection as well as future planning. See this article By Allen Hovious, President, LBMC Planning Services and posted by Terri Eyden in AccountingWeb: http://www.accountingweb.com/article/year-end-family-business-strategy-and-preparation/222646 If you don’t take the time to plan now, you risk some problems in the future. Call or email me if I can help. For financial, accounting and tax musings, You can count on us to count for you! email: bstonercpa@sbcglobal.net phone: 818-317-6035 Website: www.briantstonercpa.com https://twitter.com/bstonercpa