Check It

Does Your Tax Refund have Plans?

2011-04-05T14:07:00.000-05:00

In an effort to stay current with the ever changing details of tax filings and the IRS, I signed up for electronic updates and share information that might be relevant to our customers when it arrives. Although the information below is not 100% business related, it does impact on a personal level since we all pay taxes… or at least we are supposed to! In the interest of full disclosure, I will confess that rather than attempt a witty re-write of this information, I have simply copied it to share in the words of the IRS.

Are you expecting a tax refund this year? Here are 10 things the IRS wants you to know about your refund.

1. Refund Options You have three options for receiving your individual federal income tax refund: direct deposit, U.S. Savings Bonds or a paper check. You can now use your refund to buy up to $5,000 in U.S. Series I Savings Bonds in multiples of $50.

2. Separate Accounts You may use Form 8888, Allocation of Refund (Including Savings Bond Purchases), to request that your refund be allocated by direct deposit among up to three separate accounts, such as checking or savings or retirement accounts. You may also use this form to buy U.S Savings Bonds.

3. Tax Return Processing Times If you file a complete and accurate paper tax return, your refund will usually be issued within six to eight weeks from the date it is received. If you filed electronically, your refund will normally be issued within three weeks after the acknowledgment date.

4. Check the Status Online The fastest and easiest way to find out about your current year refund is to go to IRS.gov and click the “Where’s My Refund?” link at the IRS.gov home page. To check the status online you will need your Social Security number, filing status and the exact whole dollar amount of your refund shown on your return.

5. Check the Status By Phone You can check the status of your refund by calling the IRS Refund Hotline at 800–829–1954. When you call, you will need to provide your Social Security number, your filing status and the exact whole dollar amount of the refund shown on your return.

6. Check the Status with IRS2Go IRS2Go is a smartphone application that lets you interact with the IRS using your mobile device. Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app. Simply enter your Social Security number, which will be masked and encrypted for security purposes, then select your filing status and the exact whole dollar amount of your refund shown on your return.

7. Delayed Refund There are several reasons for delayed refunds. For things that may delay the processing of your return, refer to Tax Topic 303 available on the IRS website at http://www.irs.gov, which includes a Checklist of Common Errors When Preparing Your Tax Return.

8. Larger than Expected Refund If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference. Follow the instructions on the notice.

9. Smaller than Expected Refund If you receive a refund for a smaller amount than you expected, you may cash the check. If it is determined that you should have received more, you will later receive a check for the difference. If you did not receive a notice and you have questions about the amount of your refund, wait two weeks after receiving the refund, then call 800–829–1040.

10. Missing Refund The IRS will assist you in obtaining a replacement check for a refund check that is verified as lost or stolen. If the IRS was unable to deliver your refund because you moved, you can change your address online. Once your address has been changed, the IRS can reissue the undelivered check.

For more information, visit the IRS website at http://www.irs.gov or call 800-829-1040.

Sales Tax on the Internet... Another Perspective

2011-03-23T15:18:00.004-05:00

As I continue to read posts and articles stating arguments from both sides of the online sales tax debate I find a slightly unsettling feeling grow. As stated in a previous post, I seek to evaluate this topic from an objective perspective in spite of my personal affiliation with an online only company. I understand the impulse to push this sales tax collection onto the online only companies as it is certain to create tax revenue for states in dire need of funds. What I find unsettling is the spin at play and the seeming inability to sort out an equitable resolution that accommodates both sides. Once again, I would like to add a few thoughts to the "conversation" in the hope that another perspective may help drive both sides to a middle ground.

An organization referred to as the Alliance for Main Street Fairness (AMSF) appears to be driving the efforts to force online only retailers to collect sales tax for every sale made. In an effort to fully understand their perspective on this situation, I took to their website for some self-education. What I found got my attention, but perhaps not the way they intended. While I will concede that I understand very well the frustration driving many of their statements, what got my attention most is the apparent lack of objectivity in these statements. Here are a few of the comments to which I found myself thinking, “hmmm…. That doesn’t seem completely accurate.”

Myth: Requiring online-only retailers to collect the sales tax will result in less internet commerce and hurt the economy.
Fact: The fact that online-only retailers are able to exploit a loophole and fail to collect the sales tax at the point of purchase, results in an unfair advantage over local, brick-and-mortar businesses that are required to collect the tax at the point of purchase. These employers can't compete with online giants that don't collect sales taxes and don't have a local presence in our neighborhoods. Unless the system is corrected, local retailers will become endangered species as they are being punished for following the law and collecting sales taxes, while their competitors are not. This is a matter of common sense and basic fairness.

Another Perspective: Online retailers are following the laws as they exist currently including the collection and payment of sales taxes in locations where their business operates. While I understand AMSF does not believe these laws to be fair to brick and mortar only businesses, to claim that online only businesses are exploiting the system is not a fair statement. Since AMSF are already doing what I would usually suggest – trying to change the system – my only other comment is to play fair in doing so. Just because you don’t like the current situation does not automatically make the other party a villain.

Myth: Collecting the sales tax would be extremely burdensome for online-only retailers as it would require them to develop, test and install new software, which would be costly and time consuming.
Fact: The reality is that the software and Web applications necessary to collect the sales tax have already been developed and put in place by numerous retailers that choose to adhere to the law and collect the sales tax. The alternative is not the system that we have today where individual taxpayers are required to record purchases they make online and either carry and unmet tax obligation or pay at the end of the year, a responsibility most are not even aware is theirs. The correct solution is for online-only retailers to harness Web applications that already exist for collecting the sales tax and to do so at the point of purchase.

Another Perspective: Ok – I have a few thoughts with the suggestions of this “fact” statement.

First – They are again implying that online retailers are not complying with the current laws which I find very difficult to believe. If this were the case, I am certain that the appropriate government agencies would be actively pursuing the businesses in violation to collect.

Second – If these fantastic software and web applications are so readily available, wouldn’t it benefit AMSF to showcase a few on their site? Or is it possible that these applications are primarily proprietary solutions created by the larger online businesses and not readily or affordably available to the small online only business owners? Their statement also seems to overlook the probability that many of the online only businesses impacted by the changes they seek are small businesses – just like the brick and mortar businesses they are trying to defend. In the interest of debating on a level playing field, let’s consider this… Brick and mortar businesses collect sales tax on purchases based on their business location – one single rate of tax. Forcing online only retailers to collect sales tax for EVERY purchase made would require constant tracking and updating of tax rates for all 50 states and, in most cases, the differing rates between counties and cities within each state. Imagine how much time it would take for you to stay up to date with all of these tax rates. Imagine how expensive the software updates could get.

Third – About this business of making individual customers the unwitting victim bearing the burden of recording and reporting their online purchases - What happened to the idea of an educated consumer? If I purchase something online and am not charged sales tax it should fall on me to question this and understand the ramifications. Yes, I think that online businesses not charging sales tax can do a better job of advising customers that use laws do apply to their purchases, but using this lack of consumer education as a rally cry really seems like a blatant heart string pull. It also occurs to me that perhaps the simpler and less dramatic solution to this issue is the education of consumers about the existing use laws applicable to online purchases. Once a consumer is educated on this responsibility it is then their decision to move forward with their online purchase and bear the “burden” of reporting it on their applicable taxes. If the customer does not want to manage the recording and reporting of their purchases, then they can choose to make their purchase at a brick and mortar store where they will pay the applicable taxes at the point of their purchase. In the end you gain an educated consumer and the government gets more of the tax revenue they are so diligently chasing.

Myth: No one is negatively impacted and consumers benefit by being able to purchase goods on the Internet without paying the sales tax
Fact: Across the board, everyone - including the purchaser - is put at risk by the fact the sales tax is not collected at the point of purchase by online-only retailers. The buyer has an unmet tax liability that could result in an audit. Employers that are forced to collect the tax are losing business and may be forced to close or lay off workers. And states, with massive budget deficits are going without revenue that could help ensure they pay down their debt and finance critical services like law enforcement and emergency personnel. The only group that benefits is mega, online-only retailers who get a special deal.

Another Perspective: Again, I take issue with the verbiage choice in this statement. Once again, the spin implies that online retailers are not collecting ANY sales tax which is emphatically incorrect. Following their line of suggested logic, it also stands to reason that online employers forced to collect applicable sales tax could be losing business and forced to lay off workers. For the record, I have yet to hear a customer of ours complain about paying sales tax when it applies to their online purchase which makes it difficult to believe that brick and mortar businesses are losing customers because of sales tax.

Although it is likely that the government could choose to audit someone regarding unpaid use tax for online purchases, the use of this point in their statement really seems to be more a scare tactic. As I said above, if the concern is truly the consumer shouldn’t the focus of their drive be on educating the general public on the existing law to ensure that anyone buying online knows the risks and obligations related to their purchase choice?

Perhaps my biggest concern is that the statements posted by AMSF to save the small businesses of Main Street America fail to consider the small American businesses of the online retail industry. The last line of the above “fact” statement makes it pretty clear that the target of their frustration is the “mega, online-only retailers”. Unfortunately, this focus overlooks the small online only business that will be significantly impacted by the outcome they seek. According to their website, the goal of AMSF “is a simple one: end the unfair administration of the sales tax that is hurting small businesses.” If this is true, I encourage them to step back and gain a wider vantage point on their mission to ensure that ALL small business ventures in America – whether online or on Main Street – are equally protected.

It should also be considered that there is nothing stopping the brick and mortar businesses of Main Street America from participating in sales online. If they truly feel that they are losing market share to the online retailers, join in and give us some competition! With companies like GoDaddy.com the availability and ease of creating a retail presence on line is really quite simple and not expensive. Just some food for thought…

PS - In the interest of fairness, I would also encourage AMSF to double check their site verbiage. There are a few typos in need of attention in order to ensure that you are putting your best foot forward.

To Tax or Not to Tax, that is the Question…

2011-03-14T14:35:00.000-05:00

For quite some time now there have been stories about States changing their sales tax laws in an attempt to collect sales tax from online merchant sales. More recently the buzz about this topic has taken a more serious turn with companies such as Amazon making major business decisions in response to collection attempts, as well as legislative maneuvers by organizations such as the Direct Marketing Association (DMA). From the look of things, this “conversation” is going to continue for quite some time with the likelihood of a major increase in tension levels for all involved.

What does all of this mean to the average shopper and ecommerce business owner? As with most things, there are a lot of factors that impact a variety of people in many ways. Based on the information I have read, I have developed some basic thoughts about both sides of this debate. Here is what I have put together:

If I put myself in the shoes of the State, I can certainly understand their motivation for seeking to secure additional sales tax revenue. Everywhere you turn these days there are stories of massive budget shortage and cuts in basic state services like education. If the states are successful in collecting sales tax from the ecommerce companies selling to their residents, then their funding shortfalls may have less distance to fall and citizens could likely reap the benefits through maintained state services.

Being in the business of ecommerce, I also understand the many implications of this change to online retailers. There are, of course, the obvious factors such as a decrease in the customer incentive to shop online. If they have to pay sales tax, they may as well go to the mall and pick it up today rather than waiting for a shipment to arrive. Beyond this concern there are some other implications. If you take a look at the basic business model of ecommerce companies, the lack of sales tax is a significant factor to how the company works. Just like any other mechanism, if you change a major component it impacts the whole machine. Changing something like the Sales Tax factor could be like taking the back wheel off a bicycle and telling the rider to pretend it’s a unicycle. It was not designed to function as a unicycle, so trying to ride that way is going to cause some problems…

Regardless of how I process the information, the end result seems to land in the same place. There is no definitive correct answer to the debate. Both sides have compelling reasons for their actions and the application or non-application of the Sales Tax collection on ecommerce sales hurts one side while helping the other. Perhaps we should apply the democratic process and let the people vote… in the end the final decision most directly impacts them, their shopping options and their government funding.

For some additional thoughts and perspective, check out these articles:

Internet Sales Tax Impacts Amazon's Affiliates

DMA Legislative Action Center

Sales Tax on the Internet

Small Business Healthcare Tax Credit

2011-02-21T11:20:00.000-06:00

If you own a small business your mind probably reels with a variety of information tidbits all necessary to keep you company moving forward. Like a well oiled machine you process requests each day that make adjustments to your future planning and forecasting. This level of functioning is most likely second nature to you which means that any major change in your mental machine can throw a wrench in the workings of your day to day progress and forecasting.

With all of the changes to the tax credits and healthcare details in 2010 I suspect that many a business owner found their mental machines grinding through a few wrenches. A lot of people that I know have been particularly vexed about the health care credit and how they can determine whether or not it applies to them or is to their benefit. To help clear the air, I did a little research and here is the simple version of what I found.

You may qualify for the credit IF:

You (the employer) pay for at least 50% of the coverage costs of some of your employees based on a single person coverage rate.

Your business employs less than the equivalent of 25 full time workers.

The average annual wage paid by your company to employees is less than $50,000. (The key word here is “average”.)

Click Here for a Quick Qualification Worksheet

Things to Note:

Both taxable businesses and tax exempt organizations are equally eligible based on the criteria above. The difference is in the percentage of credit given to the business/organization. The maximum credit available for a taxable business is 35% of the premium costs paid by the business in 2010. For tax exempt organizations the maximum credit is 25% of the premium costs paid in 2010.

If you qualify for the credit and wish to claim it on your 2010 filing, use Form 8941.

For additional information check out these helpful tools:

Quick Fact Sheet

Sample Scenarios

Form 8941

Video Tutorial

Its February 14th... Do you know where your W2 Form is?

2011-02-14T12:01:00.000-06:00

Is your W2 form missing in action? With this important piece lacking from your paper pile you are probably feeling a mounting frustration of to pay or not to pay. To end your tax crisis, here is how you can track down this missing information to complete your tax return.

Contact your employer and ask then when the form was mailed to you. If they indicate that the form was mailed a week or more prior to your call, it may have gotten lost in transition. Be sure that the employer has your full and correct mailing address so that they can re-send it to you once it is returned to them. Either way, you should have it or know that you will have it shortly before February 14^th.
Don't know where your W2 form is? Then get on the phone and call the IRS at 800.829.1040. You will need to provide then with your name, address, city, state, zip code, Social Security Number and telephone number. They will also ask you to provide your employer’s name, address, city, state, zip code and telephone number along with your dates of employment and an estimate of the wages you earned for 2010. This information is needed in order for the IRS to back track and help you locate the W2 information needed to complete your tax return filing.
Listen Up! Just because you don’t have a W2 form does not mean that you can pass on filing your taxes. You have a couple of options – file an extension to allow you more time to track down your W2 or file your taxes with Form 4852 (a substitute for Form W2). If you file your taxes on time using a Form 4582 and your W2 form shows up with significantly different information from that listed on the 4582, you will want to file Form 1040X. Completing and sending this form to the IRS will amend your initial filing with the correct information.

As always, be sure to check with the IRS or your Tax Preparer to be sure that your Income Tax Return includes all of the necessary information for the IRS to process your filing. Then cross your fingers that you get a refund and don't have to write a check!

Making sense of EITC…

2011-01-31T10:40:00.000-06:00

As the tax filing season gets into full swing, you are likely to hear the acronym EITC more frequently. What is EITC? It stands for Earned Income Tax Credit. If you filed taxes last year, you may be familiar with this credit, but you should also know that there have been some changes due to all of the recent laws passed. In true tax fashion, the details of qualification can become a bit mind numbing when you sort through the IRS details. To prevent mental meltdowns I thought it might help to summarize the information in more user friendly language.

Before we get into the actual qualifying factors, let’s briefly review a few things you might want to keep in mind. First, if you qualify for an EITC you are very likely also eligible for free tax preparation services. Second, if you currently receive assistance from the government from programs such as Medicaid, Food Stamps and other subsidy programs, claiming the EITC should not impact your qualification for these programs. Third, if you claimed this credit and used the previously available advanced payment feature you are out of luck this year. Due to the changes in the laws this option is no longer available. You will still earn the credit for your tax filing, but will not be able to enjoy the advance on the qualifying credit total.

Who qualifies for the EITC? If you want to do a little pre-screening, you can check out the EITC Assistant tool on the IRS website. If you don’t have time to utilize this tool, check out the summary list below for a quick review of the basics. As always, check with your tax preparer or the IRS information sources for the full scope of information. This list is intended to provide an at a glance review only.

Before you can claim the EITC you MUST meet the qualification requirements and file a tax return. If you do not usually file a tax return due to your gross income levels you will need to start a new trend or pass on the credit. No filing = No credit!

If you do not have earned income (a paycheck) for last year, you will not be able to claim this credit. It is an Earned Income Tax Credit. If you did not participate in the earning process, you cannot enjoy the credit benefits. Just like the Lotto, you have to play to win!
Do you have a valid Social Security Number (SSN)? If yes, then you can continue on with your credit claim journey.
Do you have investments (example: stocks) that earn you income? If these investments earned you $3101.00 or more throughout the year you will not qualify for this credit.
Married? Congratulations! Be sure you file as a married couple and not separately or you will not qualify for this credit.
The EITC is available to US Citizens and/or resident aliens only. If your citizenship status is anything other than these two categories, you may not qualify for this credit.
If your parents are including you, their child, in their qualification for EITC you cannot claim the credit for yourself.
Do you file Form 2555 or Form 2555-EZ? If yes, you can stop reading. You will not qualify for this credit.
Your earned income and adjusted gross income (AGI) MUST meet the qualification limits based on your marriage and parenting credentials. (If you are married and how many kids you have…)
Are you claiming a child on your taxes? To qualify for this credit they must meet certain criteria, as well. (see below)
Were you at least 25 years of age at the end of 2010? Were you 60 years of age or younger at the end of 2010? If you answer, “yes”, to either of these questions you are meet the age criteria. If not, you may not qualify for the credit.
Does someone claim you on their taxes as a dependant? If so, you will not qualify for this credit.
Did you reside in the United States for at least half of the year? If yes, then you can continue in your qualification quest. If no, you are not likely to be eligible.

Income Qualification Ranges:

For the 2010 Tax Year, earned income and AGI must each be less than the following to qualify:

If you have 3+ qualifying kids… $43,352 ($48,362 if you are married and filing jointly)
If you have 2 qualifying kids… $40,363 ($45,373 if you are married and filing jointly)
If you have 1 qualifying kid… $35,535 ($40,545 if you are married and filing jointly)
If you have 0 qualifying kids… $13,460 ($18,470 if you are married and filing jointly)

Child Criteria for Credit Qualification:

The child must have lived with you in the US for more than 6 months of the year.

You must be able to prove the relationship status of the child you are claiming. Qualifying relationship status includes your natural child (son or daughter), stepchild, foster child, adopted child, natural sibling (brother or sister), step-siblings, or a descendant of any of these (grandchild, etc).
Was your child 19 years of age or younger at the end of 2010? If yes, you meet the age requirement.
Was your child a full-time student under the age of 24 at the end of 2010? If yes, you meet the age requirement.
Was your child permanently and totally disabled at anytime during 2010? If yes, you should meet the age requirement.
Unless the child you are claiming is permanently and totally disabled, they must be younger in age than the person claiming them in order to qualify.
Did your child file a joint return? If so, then they may not qualify for you to claim them.

EITC Maximum Tax credits for 2010:

If you have 3+ qualifying kids… $5,666
If you have 2 qualifying kids… $5,036
If you have 1 qualifying kid… $3,050
If you have 0 qualifying kids… $457

Common Errors to Watch For:

If you are claiming a child in the qualification for this credit, be sure that they meet the necessary criteria.
If you are legally married, filing as “single” or “head of household” will harm your chances of qualifying.
Be sure the income your report is 100% accurate!
Double check the SSN details for you and your children. Typo errors and/or missing information could cause trouble in qualifying for this credit.

Military Special Circumstances:

If you are an active member of the military and received Combat Zone Pay you may enjoy some flexibility in your AGI. As you prepare your taxes, review whether or not including your Combat Zone Pay helps to qualify you for a larger credit and/or if it pushes your income above the qualification threshold. If it pushes you past the threshold, you may have the option to not include it. If it helps you to receive a higher credit, you may want to include it. Just remember that the inclusion of Combat Zone Pay is an all or nothing option. As always, check with the IRS or your tax preparer for the full scope of impact on this detail.

Tax Penalties on the Rise

2011-01-17T11:13:00.000-06:00

There has been a lot of chatter about changes in the tax rules and regulations in the past year. Regardless of personal feelings on the matter we are all in the same boat of compliance trying to keep from going over the proverbial waterfall. For business owners the navigation of these new rules is two-fold. Like the rest of us, they have to be sure that their personal filing is accurate, but they are also faced with ensuring that their business reporting is spot on. With this in mind, I thought that a little information sharing might be in order to inspire a little more diligence in us all as we prepare our taxes this year.

Did you know?

A failure to file accurate information returns now results in a penalty of $100 per return (an increase from $50)

A failure to file can now cost up to $1.5 million (increased from the $250,000 maximum)

For corrected returns filed within 30 days, the fee is now $30 per return (up from $15)

Organizations filing corrections within 30 days may be subject to a maximum of $250,000 (increased from $75,000)

Corrections filed more than 30 days after the due date, but prior to August 1^st is now $60 per return (up from $30 per return)

Organizations issuing corrections more than 30 days past the due date, but prior to August 1^st, can face penalties up to $500,000 (up from $150,000)

Have an organization (small business) with gross receipts of $5 million or less?

A failure to file penalty can result in a maximum fine of $500,000 (increased from $100,000)

Corrections issued within 30 days may be fined a maximum of $75,000 (increased from $25,000)

Corrections issued 30 days or more past the due date, but prior to August 1^st, can be fined a maximum of $200,000 (increased from $50,000)

Interested in a few more details?

Article 1

Article 2

Friendly Reminders for Tax Time

2011-01-10T14:49:00.000-06:00

Yes, I realize there is a certain level of irony using the word "friendly" in the same header sentence as the word "tax", but I swear this information is benevolent! Due to a variety of legislative and calendar adventures this year, the 2010 tax filing details are a little different than previous years. With all of these changes in mind, I thought it might be nice to share a few information tidbits to help you file on time and avoid unnecessary headaches.

1. Due to a calendar conflict with the Emancipation Day holiday, 2010 tax filing is due by April 18, 2011 - not the usual April 15 deadline.

2. If you prefer to file your return in a paper format, remember that the IRS is not mailing tax packets to tax payers this year. You can still obtain these packets at your local IRS Office as well as participating Libraries and Post Office locations. Forms can also be downloaded and printed from the IRS website.

3. If your annual income was less than $49,000 for 2010 you can get your tax preparation completed for free! Check out the Volunteer Income Tax Assistance program for details.

4. If you are 60 years of age or older you can make use of free tax counseling and basic preparation services through a program called Tax Counseling for the Elderly.

5. If your adjusted gross income is $58,000 or less for 2010, you can e-file your taxes for free using the traditional version of the Free File software.

6. Interested in filing electronically, but don't need the software? You can also use Free File Fillable Forms to e-file your 1040, 1040 A and 1040EZ return.

7. If you are being paid to prepare a tax return for another person, be sure to obtain your PTIN. (Preparer Tax Identification Number). The 2010 filing is the first year that this is required.

8. If you maintain financial accounts in foreign countries, be aware that the IRS has taken additional steps to ensure that appropriate taxes are paid on these funds.

9. Due to tax change legislation signed in 2010, people who include certain forms in their filing will be required to wait until mid-to-late February before they can complete and file their tax forms. The delay is designed to allow the IRS ample time to reprogram its processing systems to ensure that they can properly process filings with these changes. Who does this apply to? Anyone who: Claims itemized deductions on Schedule A; Claims the Higher Education Tuition and Fees Deduction; Claims the Educator Expense Deduction. The official date of acceptance by the IRS for tax filings including these claims is still pending, but will be announced.

10. If you do not fall into the category of people who must wait until mid-to-late February to file their taxes, you can submit your completed forms to the IRS as early as January 14, 2011.

A Sticky Decision… Which envelopes do you use?

2010-12-27T16:30:00.000-06:00

A customer called the other day to order envelopes for their business. Once we determined which style of envelope best suited his needs, we discussed the merits of traditional sealing envelopes versus self-sealing envelopes. Because we wound up having a rather lengthy conversation on this topic I thought it might be worth sharing the points we discussed in the event that they are helpful to someone else faced with the same decision.

The first feature we discussed was cost. Not a shocking starting point considering that people are still being very diligent with their expenses. For the purposes of conversation, let’s work with an estimate of 1,000 double window style envelopes. A standard version of this envelope in this quantity is approximately $59.53 while the self-seal version is around $80.16. At first glance this seems like a big jump in cost and the knee jerk response would be to go with the traditional. Before making this decision, however, consider that with a quantity of 1,000 envelopes the cost difference equates to around $.02 per envelope.

With this $.02 per envelope realization in mind, you might want to consider how these envelopes are going to be used. More importantly, how many of them will you use on a daily basis? If you will only use a few at a time throughout the week, you may be better off sticking with the traditional envelopes and saving that $.02 per envelope. However, if you plan to use all 1,000 in a single project that requires a fast and timely completion, that extra $.02 could save you in the long run. Take a moment and consider how much time (and taste buds) might be wasted if you have to moisten each individual envelope during this project. Now consider how much faster the project could be completed if all you have to do is fold over the envelope flap and press it to the envelope to seal it. Take another minute and think about how impressive your skills will appear to your boss when you complete the project in less time than expected. Suddenly that $.02 extra per envelope does not seem like such an expensive upgrade after all…

Holiday Hours for 2010

2010-12-23T16:50:00.000-06:00

Wishing everyone a Happy Holiday!

Traffic Trends for the New Year

2010-12-20T13:01:00.000-06:00

There have been quite a few articles and blog posts lately attempting to predict trends for 2011 related to building website links and what it means for online businesses. As with most things internet and technology related, just when you think you understand how it all works it changes! After sorting through a stack of reading on this topic, one article stood out to me above the rest as a succinct overview of the current speculations and what exactly they mean to those of us non-tech savvy individuals trying to build our business presence on the World Wide Web. Below is a brief recap of the points discussed by Kristi Hines, but I suggest you also can also check out the full article by clicking here.

Consideration #1 – Less keywords, more brand names

Due to recent adjustments in how sites are searched such as the Mayday changes the trend appears to be moving from keyword anchor text in favor of targeting brand and/or business names. One possible “pro” of this adjustment is that it could make management of your online business reputation easier.

Wondering what “Mayday Changes” means? Click here to read more…

Consideration #2 – Quality over quantity

Following the social trends, searches appear to be moving to a quality preference rather than quantity. Think of it in Facebook terms – it’s not about who has 1000 friends, its about who has the highest quality of actively engaged friends. If the links to your site are low in number, but highly relevant you may still see better results than those sites with high numbers and less relevance. Choose your links wisely, my friends!

Consideration #3 – Authority over Rank

Ok. This one required me to do some terminology research, so let me see if I can recap in non-tech terms. The general rule of thumb has been to aim for a high PageRank to ensure that in a search your site comes up as close to the top of the list as possible. Various methods have been developed to achieve this and you could go through numerous cups of coffee trying to sort through all of them. The good news is that you don’t have to consume mass quantities of coffee understanding PageRank theories as the trends are moving toward page and domain authority to establish ranking. How is this different? Remember back in high school when your parents were concerned with the kind of kids you were hanging out with? Apply this parental concern to your website and the links attached to it. If the spammy crowd has adopted your site as its newest member, you will want to work on ditching them in favor of the class president type of links to establish your domain and page authority.

Wondering what “PageRank” means? Click here to read more…

Wondering what “Authority” means? Click here to read more…

Consideration #4 – Go beyond the home page

Whether you are sending traffic to your site from PPC or other sources, consider carefully where you are sending them. Your home page is a great place to start, but as we mentioned above the trends are moving toward quality over quantity and this applies to all scenarios. Getting customers to your site is a key objective. Putting them on a page full of relevant and useful product content is better! Investigate where your traffic is landing and see if you can tweak it to put them in more engaging area of your site based on what triggered their click interest in the first place.

Consideration #5 – Rank is cool, but conversions are better

For those of us still learning the ways of internet advertising and analytics, think of this as a sort of AP Course. Having high rankings for your site is great as it means more exposure to potential customers engaging in a shopping search. However, just being seen is not going to fill your bank account. Paying closer attention to the analytics details available from your traffic helps hone your efforts to convert a search into a sale. When you are placing your bids for keywords to boost your ability to be seen, keep in mind what terms customers are actually using in their searches. If you and the customer are calling the same product by different names, you are wasting your time, energy and money.

Consideration #6 – The relevance of Social Media

As mentioned earlier, things change quickly in the online world and social media now holds importance on many levels. There are the marketing bonuses of reaching and interacting with customers in a forum comfortable to them. Advertising options now exist in these media entities to reach new potential customers, as well. Adding to the bonus of these connections and advertising options, an active business presence in social media also counts as a positive sentiment for your company and/or brand. If you have not already investigated the use of sites such as Facebook and Twitter for your business, now might be the time to do so.

Of course, my usual disclaimer applies. This is information to consider and you should always take into account your business goals and needs before making major changes.

Easy Does It Marketing

2010-12-13T10:53:00.000-06:00

I have recently encountered a number of people striking out on their own to make a living. As they begin their entrepreneurial journey, I have seen a number of approaches to making it work and thought that it might be helpful to share a few of the choices that seem to be helpful to these business newcomers. Please keep in mind, though, that these suggestions are based on a broad brush approach. Each type of business has different needs to address on the road to success. What a retail business needs to gain dedicated customers is very different that what a new plumber needs to get going. As you scroll through these suggestions, please keep in mind the kind of business you are building and whether these things REALLY fit your business model. As has been stated before, every penny counts when you are getting started. Spend the money on the things that are most likely to give you a return on investment. As your business starts to boom, you can add more wish list items to your expenses list and watch your dreams come to life!

Develop a company logo. It does not have to be flashy and you don’t have to spend a ton of money on it, but creating a logo for your company will help convey to potential customers what services you offer, as well as set you on the right track to develop marketing efforts. This logo can and probably should be used on as many pieces of company correspondence as possible to build continuity for you business. Think about it this way – if you are searching for a company to fulfill a shopping need, are you more drawn to those with logos or those without? My guess is that like most people, the presence of a logo helps to lend some perceived solidarity to the company you are checking out making you feel more comfortable that they are legitimate and safe for you to do business with. (If I am wrong, please leave a comment below and let me know how and why!) One last thing to note – if you are hiring someone to create a logo for you, have them make several versions in various sizes. The logo size needed for business cards and checks is going to be different than that required for advertising and other larger scale items.

Logo applications you should consider include business cards, letterhead, envelopes, business checks, websites, social media outlets and advertising. Before you get overwhelmed by all the places you need to stick a logo, take a deep breath and review which ones are REALLY going to be used in getting your company up and running. If company does not write a ton of checks or send loads of letters, you might be able to hold off on logo imprinting for these items at first. I would strongly suggest adding it later, though, as it will help to create visual continuity for your branding efforts. Is your company primarily web based? If so, your concerns with logo application should consider the needs for a website, blog, social media and PPC advertising efforts. For businesses on the go requiring a lot of driving to customers, you may want to investigate the magnetic signs. Yes, I know they are a bit old school, but until your company can afford those super cool vehicle wraps, this item can offer some basic mobile advertising without busting your start up budget.

One item that I would suggest for ALL business initiatives regardless of their direct or indirect contact with customers is the business card. You never know where you may meet your next big account and not having something as simple as a business card to hand out could cost you loads of potential revenue. They don’t have to be super fancy, just an efficient way of communicating your business and contact information so that they can check you out. Of course it goes without saying that you will want to get their card, too!

Again, keep in mind what your business goals are right now and spend your marketing money accordingly. As your company grows you can upgrade your efforts and add from your marketing wish list to maintain your business momentum. There is a reason that some small businesses last and others do not – those who stick around longest usually started with the basics and waited to get fancy until they had money rolling into their coffers.

That's A Wrap!

2010-11-29T09:37:00.000-06:00

I have been running across articles and sites focused on the use of video for business marketing and thought that I would share some of the information I have found. As with most things, a wide range of options exist when it comes to the style you want to create and the money you have to spend. If you have the budget to put something together that is Hollywood style, by all means go for it and let me know when you wrap it up so I can grab some popcorn to enjoy the video screening! For those of us working with a slightly tighter budget, there are some options allowing you to achieve your video goals without breaking the bank.

Perhaps the most important factor you need to consider before embarking on your video journey is how the video will be used. Is this something for your Social Media adventures or YouTube? Is it being added as a helpful feature to your website? For these uses, there are budget friendly options to consider. If you are intending to use your video for television spots or as a promotional video for your company, I would suggest speaking with a professional to ensure that you get the appropriate quality level. Do not, however, let someone talk you into hiring the full scale production team for a simple video to post on your blog or other such internet equivalents without really investigating your need. This is one area where you can get talked out of your budget VERY quickly if you have not done your research!

One article I read discussed the necessary ingredients for making a business appropriate video and suggested the emphasis should be on sound and lights rather than the super high definition camera to record your acting debut. A well made point in the article asked the question of how many people use high definition monitors currently – probably not very many. This thought alone should help you talk your way out of that high definition camera the sales person at the gadget store is insisting you need. Get yourself a good quality camera at a fair price, a great microphone and some real studio style lights. Spend some time testing the set up and lighting before making your final take and most of all – have a little fun! There are loads of home style videos floating around the web which seems to indicate that content may carry a bit more weight than style in the demonstration/education video arena. Dry and boring delivery, however, cannot be overlooked as easily as a lack of stylish setting. Smile for the camera and get your 15 minutes of fame!

If your budget is so tight that purchasing new equipment is simply not an option at the moment, you can still put together a product video for basic use. There is an option beyond the PowerPoint slide show – I promise! My most recent discovery is a service called animoto. This service allows you to take product photos and turn them into a video clip. The videos produced are DVD quality, free of service branding and can include music that is already licensed for commercial use. The final product can be used to create DVD’s for your customers, to enhance your website, spruce up your blog content, uploaded to YouTube and more. The cost is very reasonable considering that you do not have to purchase, house, set up or learn to use production equipment.

For some additional how to assistance, check out this site - they have some great instructional videos!

The Simple Approach

2010-11-22T17:13:00.000-06:00

I have heard rumblings for a while now that as the economy continues to cut people loose from their usual jobs more are considering the path of entrepreneurship. While I am in full support of small business and striking out on your own I have also seen people get so wrapped up in the excitement of the idea that they overlook the effort required to make it work. From my vantage point, the people who have taken the simple approach while steadily working to achieve their business goals are the ones who tend to stick around the longest. Those who spend the majority of their time concerned about the style of the stationary rather than the number of customers tends to experience a shorter version of entrepreneurship.

With that said, for someone just getting started there are so many things to consider and many more pieces of paper to fill out, file and organize. Trying to also juggle the details of marketing pieces like logo design, business products and accounting can make the process a bit overwhelming. How can you make this process simpler? The first thought that comes to my mind is – delegate! Be aware of your budget constraints, but also remember that no one is an expert at everything. If graphic design is not your thing, find someone who can design your logo and letter head for you. The time you save wrestling with the software and cursing your non-artistic genes will allow you to focus on other areas and focus on the making money part of things. Of course, this theory also holds true for accounting and marketing efforts.A big part of entrepreneurship is wearing a lot of different hats, but no one ever said you have to wear the expert version of each hat. As things begin to come together for your business venture, consider where your talents lie and where you could best use someone else’s talents to keep your company growing. Leverage your time with the skills you can afford to outsource and then reach for the stars!

With respect to office supplies – I might suggest starting simple and upgrading later when you have the funds and the need. If accounting makes you a bit uncomfortable, consider a one-write system to help you keep track of your check writing. When your needs outgrow this tool you can upgrade to a software program or an employee to handle the new level of need. In the time between you will keep money in the company coffers while still meeting your immediate needs. When purchasing business checks and envelopes, look for a supplier that offers inclusive pricing – and perhaps free shipping! If adding your logo is an additional cost and you don’t absolutely need it for credibility, save the money and get the basic version to get you started. Your forms will still look professional and you can upgrade later when the money is flowing a bit more freely.

Advertising and marketing is always a tricky thing when you are getting started. You need to allocate funds to address both needs, but working on a tight budget you can be forced to get a bit creative. Check out networking sites like Biznik and LinkedIn that allow you a free sign up and access to connecting with other people experiencing similar situations. Make those connections and gather some sage advice to get you started. You can also check out sites like Merchant Circle that allow you to establish an on line presence for your company at little or no charge. They also offer opportunities for advertising and, in some cases, allow for a single ad to be run at no cost just for setting up your account. The other thing to consider is the Social Media craze. I won’t get into the full scope of pro’s and con’s, but investigate it to see if it might be a good fit for your business. Twitter and Facebook are free to use and both offer a chance to get your company name out to the general public in another way. When you have more money to spend on advertising, you can run ads through Facebook and other spots like Google, Bing, Business.com, etc.

There is a lot to consider when striking out on your own. It can be immensely rewarding, but a lot of hard work. If you stick with it and use as many of the free tools available to build your presence it can be a little less expensive!

EZ Tax Form Filing

2010-11-15T14:46:00.000-06:00

Regardless of your company size, the annual tax form adventure is looming on the horizon! A time when sales of headache cures spike and tempers run a little shorter than usual, most people wonder if they will ever be free of the stress. If you can afford to hire outside assistance to handle the paperwork for you then your stress level should receive a significant decrease during this time. For those who are not quite yet to the delegation level there may be hope for a simpler solution…

What if there was a service allowing you to simply enter the necessary data for your W2 and 1099 filings, push an “enter” button and then get back to business? No need to buy special tax forms, paper stock or envelopes. No bulk buying of postage. No frantic rush to print and mail by the due date. Would this help to keep the headaches away?

Fret not – there is such a service! EZ1099W2.com is an online service that allows you to set up an account and then update with the necessary information for your W2 and 1099 filings. Once you add the information, the service takes care of mailing copies to the appropriate parties and e-filing with the IRS or SSA. A digital copy is sent to you, the payee, for your records along with email confirmation that the forms have been filed on your behalf. Another great feature is that if your employees remain the same from year to year, their information is already in your account so you simply have to update the data for each form making the process even quicker! Pricing for the service is based on a per form filing, so you pay for only what you use.

Check it out and let us know your thoughts!

The Art of Presentation

2010-11-08T12:49:00.000-06:00

A lot of companies seek to set themselves apart from their competition and will try a variety of ways to accomplish this goal. Some will develop advertising campaigns, others will make distinctive changes to their customer service. There is, in fact, a ton of ways to set about making your mark as a business, but some are a bit simpler than others.

Consider the last time you paid for a service (oil change, tax preparation) or received a set of important documents (mortgage paperwork, presentation proposal). Assuming that the service itself was flawless, how was the paperwork/payment handled? Did you receive an unruly pile of papers/receipts or were they handed to you neatly organized in a folder? Which of these delivery methods would make its mark in your memory? Odds are that the paperwork handed over organized in a clean folder is more likely to leave the impression that you did business with a professional organization rather than the average Joe.

I realize this seems a bit of a stretch, but consider this example… What marks the difference between a Coach Bag and the want to look like version available at Target? Both bags are made of leather and follow the style of the season. Yes, there are some differences in the quality of the leather and construction, but all things considered they both hold your things as you travel about town and act as a fashion accessory for your outfit. From a shopping perspective, what sets them apart is the presentation of the bags as they are made available to the consumer. Things like the décor and atmosphere of the shop itself set the tone of expectation that one bag is significantly better than the other. Consider, as well, that Coach is well branded as a company making it instantly recognizable as something people are willing to pay more to own. When you buy a bag at Target, it gets added to your plastic shopping bag along with your other purchases. A Coach bag is presented to you in a protective cloth storage bag and then placed in branded packaging giving it a special status as an item worthy of its own shopping bag. There are a number of other differences that I could relay, but you are probably getting the point… or wondering where in the world I am going with this analogy!

If your business involves services such as tax preparation or someone who handles mortgage applications and paperwork, would you prefer to be considered the Target or Coach of your industry? Which perception will help your bottom line? Beyond your office decor and personal attire, what can help set you apart from the Average Joe version of your business? Presentation to the customer! If you need to present your customers with a pile of papers for signing and filing their perception is sure to be significantly impacted by receiving these documents in a professional looking folder than one large pile. Add your company logo to these folders and you have very simply reinforced your branding efforts while also providing a visual reminder to your customer the next time they need your service and revisit these forms to see who they used before. Don’t believe me? Give it a try with a small test batch and see if you notice a change in the reaction of your customers.

New Kid on the Tax Block - 1099-K

2010-11-01T10:30:00.001-05:00

It could be that I am a little behind on the tax related water cooler chat, but I recently started hearing about this new 1099-K form. Spurred by my curiosity to know what this new form is all about I hit the web for some research. As with most things related to the IRS there are some very strong opinions about the implementation of this new form and the implications it has on the business community – particularly the small businesses. As we prepare to embrace the 2011 tax adventures, check out the details below to be sure you have a handle on things to come!

The 1099-K form was put into play along with the Housing Assistance Tax Act of 2008 and will be introduced to the tax filing process for the 2011 tax year.

The form will be generated by banks and/or payment processing services. Business owners will simply receive their copy of the form for tax filing.

It appears that the form is being implemented in an effort to better track income streams from credit/debit cards, gift cards and PayPal type services.

A 1099-K form will be required when a merchant has 200+ payment transactions totaling $20,000 or more in a given year.

The form is not yet available for procurement, but will be made available in 2011 along with the usual tax forms. For the curious minds, a sample can be viewed on the IRS website to familiarize yourself with the information and its layout.

For additional information, check out these postings!

http://www.gaebler.com/IRS-Form-1099-K.htm

http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm

http://staciestaxtips.blogspot.com/2009/11/have-you-heard-about-form-1099k.html

New Rules to Live By...

2010-10-25T11:51:00.001-05:00

The passing of the Health Care Bill has produced a lot of conversation about the many changes entailed in the process of implementation from both proponents and opponents. Whether you are a fan of the plan or adamantly opposed to it, there are some very real implications that affect more than just your next doctor visit. For business owners there are quite a few requirements that will change how the company is run. While most business owners have been focused on the health care obligations to be imposed on companies, there is another required change that should be given equal attention to ensure that you are fully prepared to play by the new rules.

One of the biggest concerns voiced about the Health Care Bill is the cost associated with it and from where that money will come. To address this concern the bill contains IRS filing changes intended to close certain tax gaps and produce around $17-million. Though the intention to plan for the cost of this new bill should be applauded, there are concerns being raised about the implications of these gap closures on the business community. In particular, the changes to the filing requirements for the 1099 have produced a great deal of conversation.

If you are not already aware, provisions of the Health Care Bill will require all businesses to send a 1099 form for annual purchases of goods and services of $600 or more. Additionally, incorporated businesses are no longer exempt from the production of 1099 forms. Before you start to panic, keep in mind that this new rule is not going into effect until January 1, 2012 – you still have another year to prepare! There are, of course, a slew of concerns about the ripple effect this will have on businesses and many organizations have already begun to voice their concerns at a congressional level. So far, it is only vocalization and repeal requests have not passed.

In the interest of being prepared for what is likely to come, I have gathered some information that may help to prepare you and your business for these changes. Some will be simple and others may require that you revisit the way your company manages its accounting. For the more substantial changes, I suggest having a bottle of headache medicine handy!

Things to know:

If you spend more than $600 annually with another business, you will be required to produce a 1099. This includes companies that provide services, as well as goods. For example: janitorial work, airline tickets, raw materials, office supplies and merchandise.

Purchases made before January 1, 2012 should be exempt from the new filing rules.

Be sure that the IRS receives a 1099 for each business meeting the new requirements and that a copy is sent to the payee (company you paid for services/goods). You should also expect to receive copies of 1099 forms from businesses that have paid you more than $600 annually. The 1099 forms you receive DO NOT need to be sent to the IRS – just keep them with your tax records.

Incorporated businesses are no longer exempt from producing 1099 forms for $600 or greater in annual spending for business to business transactions.

Small businesses include anyone conducting business as a sole proprietor, consultant or self-employed.

If you fail to produce a 1099 according to these new rules, you will be fined $50 for every 1099 not reported. If your reporting failure is of an “intentional” nature, the fine can be $100 or more.

All 1099 forms filled out by the payer (you) are required to have the total payment for the calendar year, name and address of the payee, the Tax ID number for your business and that of the payee, and your business contact information.

Payment transactions made with a credit or debit card will be exempt from your 1099 reporting requirements because payment processors will be required to file an annual report to the IRS and merchant (you) about the gross amount paid to the merchant during a calendar year. ** Calendar year is the key point to note here!

When you file your company’s taxes, you will need to differentiate between cash sales and credit/debit sales. The report filed by payment processors is intended to assist in the separation of such reported revenue.

If you currently use accrual accounting rather than cash basis accounting for your business, you may face a few more challenges from the changes.

If your business uses a fiscal year different from the calendar year used by the IRS, you may face a few additional challenges in meeting these new requirements.

For additional information, check out these sites:

Tax Rule Changes (article one)

Tax Rule Changes (article two)

IRS Statement regarding changes

Tips to Comply with the New Rules

The 1099 Mystery Solved

2010-10-18T12:00:00.000-05:00

For our second round of tax forms helpful hints, I thought we would tackle the 1099 forms. As with many tax related forms, there are a variety of available forms that you may or may not need to file. To assist you in determining which, if any, of these forms you may need to work with for your filing we have compiled a handful of information tidbits, cheat sheet charts and things to consider.

Because I am not a CPA or otherwise overly versed in tax codes, my first question in this research process was… What is a 1099 form used to report? (Click graph images for larger view)

Now that you have a sampler of a few 1099 forms and their use – let’s consider a few more details.

How are you printing your 1099 Forms?

Most people these days use laser or inkjet printers in their offices and homes. If you fall in this category, you will want to use the Laser Forms. If you use either a dot-matrix or a typewriter then the Continuous Forms are your best bet for successful printing.

If you are printing the information for your 1099 forms from an accounting software program, then be sure that you verify how your software prints the information to ensure you purchase the correct forms. The Standard 1099 forms are compatible with most software programs, but should you require a non-standard form they are available for 1099-MISC and 1099-R forms.

Also consider whether your software prints just the information required to complete the form or the details of the form itself. If your program prints only the information, then you should be using a pre-printed form. This means that the fields of the form are already printed in an IRS approved format and you need only add the relevant information to each box/field. If your software prints all of the form details, though, you want to purchase blank forms.

Are you required to file this information with agencies other than the IRS?

Each state and local government agency has differing requirements about tax responsibilities. Be sure to check with your state and city to be certain that you have filed with all necessary entities. In most cases, filing with a city and/or local agency requires use of a 4 or 5 part form. (Click list image for larger view)

Don’t forget your 1096 Form!

The 1096 – Annual Summary and Transmittal of U.S. Information Returns – form is usually required to be filed for each of your businesses (registered EIN numbers). The general rule of thumb is that a 1096 should be filed for each of the 1099, 1098, 5498 and W-2G forms filed for each business entity.

How are the 1099 forms being delivered?

The most overlooked part of the filing process is the delivery of the forms. Because these forms are a unique item in their size and formatting, the use of tax form envelopes to securely deliver the completed forms to the recipients can make the finalization of this process a headache free endeavor. Available in standard gum seal or self seal, envelopes made just for your 1099 forms are available!

As mentioned in the post about the W2 Forms last week, there is an alternative choice between handling your own tax adventures and hiring a formal CPA or Accountant. A filing service offers a digital data entry process of the information needed to complete your W2 and 1099 forms along with the service of producing and sending the IRS copies on your behalf. You receive PDF copies to print and distribute to employees and/or local agencies, but save quite a bit of time and stress allowing them to get the information in the correct boxes on the forms. Once the IRS copies have been filed you receive an email notice so you can check it off your task list!

Click here for additional information!

W2 Scoop

2010-10-11T14:04:00.001-05:00

Unless you have intentionally chosen to study up on the various tax codes, requirements and forms the season of giving to the government is likely to call for excessive consumption of headache medicine – among other things! If you own a business with employees you should probably consider a bulk buy discount on the headache cures. Trying to keep track of all the necessary forms to be filed, the information needed to complete each form and the various deadlines involved on top of the daily chores of keeping the business functioning is likely to send your head spinning. There are, of course, accountants and CPA’s for hire to ease this stressful endeavor, but smaller companies and start up businesses may not have the financial means to hire such wunderkinds to ease their work load. How, then, do they know which forms to file? Let me see if we can help!

Consider this the first posting of a tax forms helpful hints collection. Today we will start with W2 forms…

The first, and perhaps most important, question to ask yourself is – how many employees to I have?

The answer to this question determines how many W2 forms you will need to print and/or file. Keep in mind that these forms come in packages (usually 25 pieces per package), so if you have only 5 employees you will have extra copies once you complete filing. Of course, this also gives you a few back up sheets for any printer malfunctions and if it is your first year filing you can save one for your company scrapbook!

How are you printing the W2 forms?

Do you use a laser or inkjet printer? Do you have a dot-matrix printer? Still using a typewriter? For laser or inkjet printers, you should order forms marked as Laser Forms. If you use a dot-matrix printer or typewriter, the Continuous Forms are a better choice.

Are you printing the information from a software program? If yes, be sure that you verify in your software how it prints the information. Some programs will print all of the form details (boxes, etc) while others print only the employee data. If your program prints all of the form details, you want to order the blank perforated paper to ensure that you have a clean sheet on which to print. If your program prints only the employee data, be sure to order the pre-printed forms which have the form titles, boxes, etc. already printed for you and only require the addition of the employee data.

Which state(s) is your business reporting to?

This is a key piece of information to know as different states have differing requirements. Be sure to verify your obligations with the state(s) before ordering your tax forms to ensure that you have exactly what you need. What you will notice is that based on the state(s) requirements, the number of parts needed on the W2 form(s) will differ. You also want to keep in mind that if you have to file with a city or local tax agency in addition to the state and federal governments it is probably safe to assume you need an 8-part form. You may also want to double the quantity of your Copy 2 forms to be certain that you have enough to complete all of your required filings.

How many companies (EIN Numbers) are you required to file for?

If you have more than one company registered with the IRS (received and EIN number) you need to be sure that you have the appropriate forms for each business – especially if they are subject to different tax requirements due to their location. In addition to W2 forms, you may also need to complete a W-3 form for your business.

How are the W2 forms being sent to your employees?

If you are mailing or distributing the forms in the office (where other eyes may see) you might want to consider order the coordinating envelopes for your forms. Although this may seem like a luxury item to small businesses on a budget, it will most likely save you hours of frustration and paper cuts trying to stuff the forms into alternate envelopes not designed for their size.

Now, let’s talk about the actual filing process. If you do not currently have an Accountant or CPA handling this process for you, there are a couple of options you can consider. The most obvious is to manage the processing, printing, distribution and filing on your own. While this is a highly educational endeavor for the average business owner, it is also a bit time consuming. Another option is to utilize a filing service that allows you to enter the necessary data information to produce and file the forms on your behalf. Using this type of service can remove from your plate a number of the questions listed above. Once you register for the service, you do a little data entry to share the necessary data for form completion and then take a little break while the service completes an E-filing with the IRS for you. Recipient copies are also printed and mailed which means you no longer have to worry about distribution to your employees. A PDF copy of the payer copy is provided to you for your files and filing responsibilities with state(s) and local tax entities, as required. You also receive an email confirmation of the IRS filing so that you can rest easy knowing it is already taken care of for you.

Prepare Yourself!

2010-10-04T11:27:00.001-05:00

It seems that every year the Fall weather delivers cooler temperatures along with an increase in scheduling as various social engagements and holidays begin to stack up. Kids are back at school, so there are sporting practices and games to attend. Just as you settle into this new schedule demand the holidays begin to pop up on the calendar. First its Halloween, then Thanksgiving and before you can blink the Season's Greetings are upon you. Take a deep breath and then prepare yourself... for tax season! As soon as you finish packing up the holidays it will be time to start thinking about gathering receipts and organizing your files. To help lower your frustration levels during the process, be sure to check out the information below (and future posts) for helpful hints and information about tax forms.

Heads Up #1

The IRS has determined that they can save around $10 million per year with the elimination of tax forms mailing. Studies indicate that more than 96 million people filed their returns through an online service last year. Around 20 million filed paper returns through paid tax preparers. What does this mean? Most of the tax forms that the IRS put in the mail went unused which means they wasted a lot of money on postage. What does this mean for you? If you prefer the old school method of paper filing and do not currently use a tax preparer, you will have to get your tax forms from the IRS website, IRS offices or selected libraries and post office locations.

Heads Up #2

Do you use a tax preparer to avoid IRS induced headaches? If so, be sure that they are official! The IRS now requires tax preparers to register for a PTIN (Preparer Tax Identification Number). Having this registration requirement is intended to ensure that the people preparing your taxes really do know what they are doing so that you don't get a visit later.

If you are a tax preparer and do not currently have a PTIN you can complete the online application via the IRS.gov website. Just go to the Tax Professionals page and follow the instructions. Beware, however, that it will cost you $64.25 to receive this identification number! Once you have the number, it is valid for 1 year.

Already have a PTIN? You may still need to complete the registration process to be sure that you are included in the new set up. Odds are you will receive the same number so that you don't have to memorize new digits, but just to be safe take a look at the IRS site.

Hope this helps and be sure to check back next week for additional tax form information...

Consider This...

2010-09-27T11:46:00.002-05:00

I have recently encountered several print industry articles voicing concerns about the decline in paper use due to the digital age and speculating on the impact this trend may have on the industry as a whole. As with most things, opinions run the full range from panic to optimistic assumptions that it is just an opportunity to become more creative. Being an optimist, I tend toward the later sentiment, but it is impossible to ignore the reality of the digital invasion. That said, I think there are still a number of things to consider before engaging in a full blown Chicken Little impersonation.

Digital is expensive. Small businesses getting started or trying to stay in the black during down times in the economy are not likely to have the large sums of capital available to invest in digital solutions – no matter how tempting they may be.

Old habits die hard. Having worked in a number of small business environments, I can assure you that business owners get set in their ways. With the many details that must be juggled to keep a company moving forward, the usual philosophy is – if it isn’t broken, don’t fix it! This often translates into a continued use of the existing methods of paper forms and checks.

Sometimes you need a paper trail. For some businesses and industries, going digital is just not a viable option yet. This means that they still need paper work orders, receipts, etc.

Security Concerns. Although there have been great strides in digital security, there is no shortage of stories about sites and companies being hacked with customer information at risk of being accessible to the hackers. Although paper can also be snatched and counterfeiting is certainly not a dead art form the new security features on business checks and other forms should not be overlooked. A number of new measures have been implemented to add layers of protection for such items ensuring that they are safe to use while still being cost effective for your business’ bottom line.

Budget. These days most companies are very mindful of their expenses attempting to get the most for their money. Whether this means shopping for the best deal or deciding between pre-printed checks and forms versus printing your own, the great debate continues. There are a number of software products currently available allowing companies to print their own checks and business forms. HOWEVER, before you assume that this is a cost saving measure consider all of the costs involved. Most people evaluate the cost of the software and paper, but forget the additional cost of printer ink which can add up quickly. The cost of MICR ink should also be factored into the decision when thinking about printing your own checks as it is an important security feature of checks and missing this step could cost more in the long run than you save up front. Unless you are printing A LOT of checks and forms, I would be willing to bet that you would be better off finding a reputable supplier with great prices rather than trying to manage all of these details on your own. After all, there are so many responsibilities to manage in a small business – do you really want to add “printer” to your job title?

As always, I urge you to consider what is best for your business and sanity. The needs of each company are very different depending on industry, profits, staffing, resources and time. Before you take on a “cost saving” initiative, be sure that you have fully evaluated the costs – including the non-monetary – to ensure that you are not just creating more work for yourself.

Certificates of Appreciation

2010-09-20T12:06:00.000-05:00

I recently read a few articles on marketing initiatives designed to entice customers into revisiting and spending at a store or business. There were a number of great points made, as well as suggestions, but what caught my attention most is a common thread of offering customers a tangible reason to return – gift certificates!

There are a number of ways in which you can provide gift certificates to your customers, but just like many other things to be considered when running a business, you need to select the method that best suits your company personality. For example, if you have a strong presence on the social media circuit you might want to think about a contest in which you engage your fans/followers in an effort to win a gift certificate. Since I don’t know many people who are not interested in winning something, this is a great way to build excitement with your customers while also encouraging sharing with others to build new customer relationships. Every share or re tweet of a contest is free marketing!

If your company does not have a strong foothold in the social media realm or your customer base is not likely to interact with you in this arena, there are alternative considerations. Pay attention the next time you visit a coffee or sandwich shop. Most now have a frequent shopper card that earns you free items after a set amount of purchases. This plan of action is not limited to the food service industry! Consider your customer base and think about ways that you could initiate a similar program. Perhaps instead of a punch card, you send them a certificate of appreciation (gift certificate) when they have reached a certain spend amount. For example, for customers spending $100 or more, send a $10 gift certificate for use on future purchases. If they spend $250 or more then send a $25 gift certificate. Again, I can’t think of anyone who would not feel appreciated receiving what appears to be a spontaneous gift of gratitude for their patronage – can you?

Show Some Gratitude

2010-09-13T12:38:00.000-05:00

An industry article I read recently was discussing the business impact of the economic dips. The focus of this particular piece was the relevance of promotional products regardless of the state of the economy. While the article contained a good deal of great points, what really caught my attention was a single sentence… “The expectation of a gift during the holiday season is not necessarily there this year, so businesses that thank their customers and potential customers will stand out.” Why did this sentence catch my attention?

Two key reasons:
One – it is a simple truth.

Two – it indicates an opportunity for savvy business owners/managers to capitalize on sincere gratitude.

In the new business model of “do more with less”, most clients understand that companies are running on lean margins and displays of gratitude must adjust to the financial times. This thought process supports the simple truth of the sentence statement. The bi-product of doing more with less, however, is that companies have learned to be more creative with their resources. This sometimes means that what used to be simply a thoughtful gesture now doubles as marketing allowing budget resources to be successfully combined. The economic reality in which we are all now conducting business requires this balanced blend of fiscal ingenuity and sincere appreciation for customers. What exactly do I mean by this? When you find a reason to reach out to a customer be sure that it is for a sincere reason – a birthday, a thank you for a piece of business/purchase, etc. Try to avoid inventing reasons to contact them as it is easily spotted as a marketing ploy dressed up as gratitude. Once this happens any sincerity your gesture included is immediately lost.

Once you have identified a genuine reason to contact your customer you can begin to consider ways in which you can provide a legitimate gesture of gratitude that also incorporates your company’s marketing efforts. This, I believe, is the point of the sentence quoted above. Invest your marketing dollars in a few key promotional items that can also provide exposure for your business and use them for sincere displays of gratitude. This will allow you to capitalize on your gestures by gaining face time, as well as building a reputation worth claiming.

Over the years I have been in the position of both developing these gestures and receiving them. Below are a few that I have enjoyed as the gift giver and receiver.

Customized Coffee Break – If you know that your client/customer is a coffee lover, put together a little coffee break kit for them. Include items such as a coffee mug, coffee beans, peppermint sticks for stirring, flavored syrups and for a playful touch add breath mints for post coffee needs. Pick just one item in the kit as your marketing touch – perhaps the coffee mug with your company information – to ensure that your business gets the recognition while the gift still maintains the integrity of a sincere gesture.

Customized Soda Break – One of the most clever gift ideas I have encountered was given to me by a vendor seeking to educate about the depth of their service offerings. The worked with Jones Soda to create customized labels for various flavors and cleverly linked the featured service to the style of soda. The batch of beverages was delivered in the afternoon just about the time that we needed an afternoon brain boost so the gesture was immediately appreciated for its legitimate need fulfillment while also leaving us with creative reminders of what they have to offer their customers. If you don’t have the time or budget to invest in customized labels, you could achieve a similar impact delivering an assortment of popular sodas along with koozies sporting your business logo.

Just some food for thought…

Put it in Print!

2010-09-08T14:44:00.000-05:00

Having recently cycled through the process of purchasing a printer, I have come to realize that the selection process is not quite as cut and dry as one might expect. Since they do not offer all the initially exciting bells and whistles of their computer counterpart, the printer is usually a secondary selection and the recipient of much less focus in the purchase process. That said, when I began my recent purchase process I recruited the assistance of a technical minded friend and got schooled in all the considerations I had previously failed to consider.

Is there a particular brand that you are devoted to? If so, save the people assisting with your purchase the futile efforts of showing you alternate options. Don’t worry that they will take offense. In the long run, you are actually saving them time and energy! (Caution Note: If you are too stuck on a particular brand you can risk missing out on some great new products!)

What is your budget? No one really enjoys working with a budget, but before you talk yourself into spending the extra funds on the really cool printer, be sure that you really need everything it offers!

What do you need from your printer? Much like selecting a mate, you need to know what functions you need it to do best and most immediately. You should also consider growth potential for the future -assuming that your purchase is a long term investment. ** For example, if you are starting a business and know that you need the ability to print, scan and fax you might consider a single multi-functional device. However, before making your final selection think about the company growth potential you hope to achieve, as well as the volume of printing, scanning and faxing you will be doing. If you expect a high volume of all three options and multiple users need access to all three services, perhaps a single multi-function device may not be the best option. What happens if the printer portion fails and needs repairs? While it is out of commission – so is your administrative business functioning! (** Be sure to balance growth considerations with available funds so as not to land in the red before you really get started!)

What is the final cost? It’s easy to get excited about some of the great deals available right now, but I caution you to think long term. In order to being a truly useful device your printer will need ink and it always runs out a lot faster than you expect! When you have narrowed down your potential purchases to a handful of options I suggest doing a little investigative research in the ink aisle. Some of the printers that are low cost at the point of purchase recover their profit margin in the cost of replacement ink. Be sure that you understand the long term costs associated with this new piece of equipment before you make your final decision!

Additional Information to Consider:

While the majority of inkjet printers these days utilize a thermal inkjet, others use a piezoelectric crystal in place of a heating element. What’s the difference you ask?

With a thermal inkjet there is a heating element in each partition of the ink reservoir and when the printer sends the appropriate signal, a tiny current passes through. This current warms the heating element and results in the vaporization of the ink surrounding the plate producing a tiny air bubble inside the nozzle. An ink droplet is then forced out of the cartridge and onto the paper. This method relies on a smooth flow of ink and can develop problems if the ink starts to dry at the print head – usually when the ink level becomes low. (Fix it – dried ink can easily be removed from a cartridge print head by gentle rubbing with isopropyl alcohol on a cotton swab or paper towel.)

The piezoelectric crystal printers place a crystal in each nozzle in place of a heating element. With the application of an electric current, the crystal changes shape and/or size producing a drop of ink from the nozzle. A plus for this method is the use of inks that traditionally have bad reactions to heat. (Most Epson printers use this method currently.)

Laser printers have proven to be great for high volume printing, but there are a few things to keep in mind in order to receive optimal production.

Not all paper is created equal! Make sure that the paper you are inserting for your print jobs is compatible with your machine. The wrong paper selection can result in paper jams due to folding issues and an inability to handle the heat necessary for a static load process.

Fast printing means greater heat, so be sure that you are using the correct type of ink for your needs. If you need a machine that can print quickly, be prepared for it to produce some heat! (“Cooler” printer options to consider are bubble jet and dot matrix.) Use of the wrong ink in a high heat printer can cause bleed over in your print jobs can which waste both your time and paper. If you are printing high volume on pre-printed paper (such as checks) be sure that your printer is using thermocromatic ink to ensure a smooth printing process.

Old Faithful

2010-09-07T16:22:00.004-05:00

Did you know that the wall calendar is considered one of the most widely successful promotional products? Me neither! I recently read an industry article offering some enlightenment on this item as an important piece of a marketing mix. As I began reading the article I was prepared to scoff at the idea that calendars could still be a valuable player in today's market place. Everything has gone digital with most people using a smart phone or Outlook to track their schedules. Just about this time, something caught my attention and I realized that in spite of my use of a digital calendar, there is a wall calendar hanging above my desk... and that made me stop to reconsider my thoughts about this old faithful product.

As I worked to adjust my thoughts on this product, I began with a simple question - Why do I have a calendar hanging on my wall if I primarily use my digital calendar for scheduling? The top answer is that I enjoy the monthly photos - cute French Bulldogs make me smile. Second to this is that I work in an office not yet using a shared calendar. Adding important details to the wall calendar provides a great method of covering my backside allowing others in the office to easily view days that I am out and why without having to send email reminders and/or share my Outlook password.

The next step in my thought adjustment brought me to consider whether or not I would feel the same about my adorable calendar photos if they also showcased a company logo or motto. Although it might somewhat detract from the cute factor the thoughtful placement would not dampen my viewing pleasure in the least. If I am being totally honest, it would also serve the purpose of visually reminding me of a company thoughtful enough to send an item that brings me a little joy on a daily basis... and this, I believe, is the reason that customizable wall calendars remain a staple in the promotional product realm.

As you prepare for your next marketing adventure, consider this old faithful and the vast array of customization options now available. Whether adding a company logo to a calendar with pre-selected photos or developing your own monthly displays, a thoughtful gesture is always noticed and usually rewarded!

Oh Soy!

2010-08-30T11:19:00.001-05:00

On occasion I have been known to pick up on trends and one that has made it on to my radar recently is the rage over Soy. Its popularity in grocery store products are a testament to the health benefits of Soy based products and the fact that you hear coffee fanatics requesting it as part of their Latte order shows quite clearly that people have become fans of the stuff. So when I started to see information about Soy in reference to printing, it caught my attention.

After some investigation into this new topic, I feel the need to share what I have unearthed about this new printing trend. Based on the numerous articles and printing sites I perused, it is clear that the use of Soy in printing is not a totally new thing. There are quite a few commercial printers that have been using Soy based ink for quite some time laying the ground work for these latest developments. In fact, one statistic I encountered shared that 95% of American daily newspapers print with Soy based ink.

I suspect you are now asking yourself, “What is this new development?” Drum roll, please…. Soy based ink toner for personal printers! Now, before you think, “big deal”, and stop reading consider one thing that makes this a big deal. Originally Soy based ink was only able to be used in a commercial forum because it required a longer time to dry. This feature made it unsuccessful as a toner for personal printers because we all know that in today’s world one needs to print and go! No time to waste waiting for the ink to dry. With this drying issue resolved, Soy based ink toner can be produced for the personal printers of the world allowing users to support environmental efforts while also receiving a few other benefits. Below are some of the bonuses of using Soy based toner:

• Lower levels of VOC’s (volatile organic compounds)

• Soy ink makes paper recycling easier

• Soy is a renewable resource – unlike petroleum which is the base for most standard inks

• Use of Soy ink promotes farming

• Proponents of Soy ink believe the ink is actually brighter than the standard petroleum based ink

• Some reports indicate that Soy based ink requires use of less ink for printing

As this trend picks up momentum, there are likely to be many options for purchasing these products. Although I fully support a competitive market, please consider that there is a SoySeal Mark (sample graphic below) already in use to note Soy based ink products that meet a basic quality requirement. Be sure that the products you purchase have this seal to ensure that what goes into your printer is intended to produce the results you seek.

http://www.soygrowers.com/resources/soyink.htm

Death and Taxes

2010-08-23T12:10:00.002-05:00

Since it is rare that conversations about death hold great benefits for maintaining a healthy business, I will skip this portion of the title's implied topic and dive straight into everyone's favorite... taxes! Not to worry. I have no intention of droning about the specifics of certain forms or the pro's and con's of doing your own taxes versus hiring a professional to assist you. I bring up this topic as more of a public service message.

Since EGP offers a vast array of business forms and products designed to help companies with the necessities of doing business, it is only natural that we have begun the process of updating our inventory with the tax forms needed in the coming months. In an attempt to ensure my well-rounded knowledge of this product, I began a little research. After reviewing the many available tax forms on our store site I hopped over to the IRS website. After a few clicks it became apparent to me that they offer a large number of forms in a digital download format which caused me to ask the obvious question... why would our customers purchase these forms from us if the government will share them for free? With a few additional clicks of my trusted research assistant (aka: computer mouse) I discovered the answer to my question.

A good portion of the forms offered on the IRS site are labeled as "information only" forms. What does this mean to you and your tax filing preparation? The download version of these forms is available to you, but as a sort of practice test copy. Should you accidentally use one of these "information only" forms to file your taxes, not only will it halt the filing process you could end up with a new best friend compliments of the IRS. Quite a few of the tax forms necessary to the filing process must be purchased (not downloaded) for a simple and practical reason. They are printed on special paper, and in some cases with special ink, to create a "machine readable" form. Additionally there are strict specifications of each form making it highly unlikely that you would be able to print your own at home and meet the government requirements.

The message of today's tax related post? In the stress of tax season beware the temptation of free forms - they may cost you in time and fines later in the process! As with most things government related, the standard option is usually the safest one. Skirting the system may only lead to friendships you can't shake! If you decide to use some of the no cost tax forms, PLEASE be sure to read the fine print and be certain they are not "information only" forms.

PS - Here is a short list of several information only forms:

Form W-2 (series, excepting Form W-2G)

Form W-3 (series, excepting Form W-3(C)PR)

Form 1096

Form 1098 (series)

Form 1099 (series)

Form 5498 (series)

Form 5500 (series)

Form 8109-B

Green for Green!

2010-08-16T10:44:00.001-05:00

I read an article this morning about proposed legislation affecting the printing industry and it got my brain working overtime. The premise of the legislation allows purchasers of printed material to recoup some of their money via a sales tax refund on any print pieces utilizing environmentally sustainable methods. Passing this legislation is obviously helpful to the print industry as people may be more included to order those extra products if they feel that the items are eco-friendly and save them some money. I just wonder how helpful it is to the small business that does not have massive quantity orders of printed products. In an effort to be fair in my final leaning on this topic, I took a closer look at the type of printed items that a small business might purchase and which of these might qualify for the tax refund. I fully expected to find that it would only save a little money – which is still a good thing since every dollar counts in a small company – but was pleasantly surprised to find that with a few small adjustments to purchasing decisions, this could be helpful to businesses of all sizes.

Let me explain my thought process… I started the evaluation process with the business basics – company letterhead, envelopes and business cards. A quick search revealed that all of these items are readily available in a variety of styles and sizes allowing the use of eco-friendly paper goods which qualifies them for this type of credit. Not to mention that these items are highly consumable products which means you will likely need to reorder them throughout the year. Do some quick math to see how many of these items you usually use during a year of business and then calculate the sales tax you have been paying… it is probably a nice little bundle of refund potential!

Since I am always thinking about ways to maximize company expenditures, as well as refunds, I started thinking beyond the basics. Most companies – regardless of size – also purchase marketing materials that involved the addition of their business information… which means they are a printed item! Consider items such as holiday cards, wall calendars, pocket calendars and pens. There are eco-friendly versions of all these products available for purchase which means you get the bonus of making a green purchase decision for items you would likely purchase anyway along with the potential tax credit. Add the calculation of the sales tax for these types of items onto the number you came up with for your standard business products and I suspect the final tally might get you a little more excited about this legislation being put into effect.

Calling Card

2010-08-09T18:03:00.003-05:00

If you have ever watched a movie with a more historical setting you might recall the use of calling cards when someone came to visit. A simple card listing the caller’s name, this tiny formality was the first step in making and introduction or social call. Although I have not done the formal research to validate my assumption, my guess is that what we know today as the business card directly descended from these calling cards. This connection got me thinking… if these little cards have been around for so long does that mean they are successful at accomplishing their mission or just a habit we hold onto? With recent developments in technology making is super simple to exchange contact information, why would you continue to use business cards?

After some thought, I found out that there are actually quite a few reasons that I still choose to use business cards. Here are my top rationalizations:

1. Networking Events. There are certain customs and traditions built into most networking events and the majority revolves around the exchange of business cards. The one that springs to the front of my mind is sitting around a luncheon table where everyone grabs a stack of their cards and passes them to the left. As the stack makes its way around the table, each attendee takes a card for their networking stash until everyone has a card from all the other attendees. This process usually helps to jump start conversation at the table and the networking begins. Imagine if you did not have cards to participate in this process? After everyone gave you strange looks, you would still have to figure out how to get your information to your table mates without being the rude attendee that interrupted the start of networking conversation.

2. People are visual creatures. If you have designed a colorful and eye-catching business card handing it to a new contact is sure to elicit a quick response. For most people, accepting a new contact’s card translates into some version of information storage. Some people scan the information while others keep neatly sorted card files for later reference. Whatever the method, at some point your card will be seen again and with a great design it is sure to stand out putting your information back at the top of their mind. Digital contact lists may eliminate this visual prompt as their efficiency is based on storing all information in the same format.

3. Snail Mail. Although most “mail” is sent electronically these days, there are still occasions for which traditional methods are used. In these situations, it never hurts to have a business card on hand to drop in a note just to reiterate your contact information to the recipient.

These are, of course, just a few of the reasons I use to justify my continued use of business cards. Feel free to contribute yours to continue the conversation!

For some additional perspective and thoughts, check out this article! (updated March 7, 2011)

Giving Thanks!

2010-08-02T09:44:00.010-05:00

I have noticed that since the economy started slumming it businesses are scrambling for ways to maintain their customer base. Some have resorted to more frequent sales and coupons focusing on the budget factor of the buyer’s decision process. Others seem to be focusing on appreciation initiatives such as frequent shopper cards and such. While these are all great options, they tend to work better for standard retail companies rather than service oriented businesses. So, the question becomes – how does a service based company show their appreciation to their customers without blowing their marketing budget? The simple answer… go back to the basics. Back before email and text messaging the primary lines of communication were the telephone and letters – the basics.

There have been a lot of articles published lately on ways to boost your marketing initiatives without spending loads of money. Each article contains suggestions and helpful hints, but the common thread between them all is that if you are unable to invest your money into marketing, you must invest your time. Think of it as sweat equity for your business. There are, of course, multitudes of low cost ways in which you can reach out and connect with your customers. I would ask you to consider, however, the impact of each option before you settle on a course of action. Email is cheap and likely to reach your customer quickly allowing them to know within seconds that you appreciate their business. If you are connected on Facebook, Twitter or other social media sites you might also send a quick message of thanks through these mediums. Although these options are all valid during this day and age, I still suggest considering the added impact of a telephone call or a thank you note received in the mail.

Let’s think of it another way. If you received gifts from several of your friends for your birthday and one was a gift card that could be purchased at any convenient store, another was an item you enjoy obviously purchased on line and wrapped by the store, and the third was something you know took thought and time to purchase… which one would you appreciate more? I think most people would appreciate the gift that took a little more time because it shows that you are important enough to them that they took time from their schedule to get you the perfect gift. For me, telephone calls and thank you notes fall into this category.

In a fast paced business world demands on your time are high. Finding that extra few minutes to chat can feel like an impossible thing to accomplish. Same goes for the additional time it takes to write, address and stamp a card when you could just as easily sent an email. I encourage you to resist the lure of efficiency in the interest of standing out to your customer. Add the extra impact to your gratitude by spending a little more time on the delivery. A telephone call is an opportunity to build a stronger personal connection with that customer. Sending a thank you note is the ultimate personal touch as it obviously took a little more of your time to complete. Of course, a company logo or slogan pre-printed on the card itself can’t hurt your marketing efforts either.

Just a thought….