Investing your tax refund
The pain of tax season is over, and some businesses have yet to take advantage of their refunds – where should that money go?
Carla Freberg, Vendor Services Manager at Balboa Capital notes that not only is it one of the most stressful times of the year for small business owners, it involves a great deal of time and effort to compile the necessary paperwork. CNBC reported that half of small businesses in the United States will spend at least $5,000 to come to terms with their tax bills. Ouch.
“If you run a small business, the best thing you can do is present your accountant with organized financial statements, receipts, expense reports, etc. Doing so can help you maximize your tax deductions,” Freberg notes. “Now that Tax Day 2015 has passed, many small business owners are looking at tax refunds. If Uncle Sam is sending you a tax refund, you might want to use it to grow your small business.”
In her own words below, Freberg offers three ways you can invest your tax refund back into your company:
1. Mobile Technology
Small businesses are using smartphones, tablets and other types of mobile technology to assist with a variety of functions. A recent survey conducted by the Small Business and Entrepreneurship Council reveals that 74% use it to manage social media marketing, 71% for email marketing, 34% for mobile websites and 18% to manage operations. Now is thetime to embrace mobile technology, because it gives you and your employees the ability to manage things quickly, and with greater cost-efficiency. Popularmobile technologies in 2015 include point-of-sale (POS) software, mobile credit card processing, and customized small business apps.
2. Cloud-Based Technology
Advances in cloud-based technology are changing the way small businesses operate. As you know, the cost to purchase and maintain office equipment such as computers, monitors, software, printers and servers can chip away at your bottom line. Moving software and certain IT functions to the cloud can reduce your expenses and enable you and your employees to work with more mobility. There are cloud-based services available for a whole host of small business tasks, such as data storage and document sharing, and they are scalable. You can easily upscale or downscale your cloud computing requirements based on your company’s needs.
3. Cybersecurity Solutions
Just because you run a small business doesn’t mean you can hide from hackers who want to compromise your website. In today’s world, cyber thieves from all over the world scroll through the Internet looking for vulnerable websites. A cyberattack, computer virus, or internalsecurity breach would turn your small business upside down and result in decreased productivity, lost revenues and frustrated customers. Investing in cybersecurity solutions can help protect your company’s online infrastructure from malware, spyware, worms and more. Commonly used solutions include dataloss prevention (DLP) software, hardware firewalls, software firewalls and antivirus software.
Start Preparing for 2016
“If you manage your tax-related paperwork throughout the year, you won’t need to rush to get everything ready at the last minute, which can result in costly mistakes,” said Freberg. “All you need to do is establish an organized bookkeeping system with accurate records and receipts, and update it as needed. It’s a great way to prepare your company for a successful and stress-free 2016 tax season.”
Which generation has cried the most over money, and why?
(FINANCE) Financial stress is tough on everyone. Here’s who has cried the most about money woes, and a few tips on how to alleviate some of that stress.
There’s been serious critique in the last several years about the educational system and what basic knowledge young people should be taught in the United States. Home Economics (Home Ec) comes to mind (everyone should probably know how to cook or sew a button), as well as literacy with money.
There are many young Americans who grow up not really having a deep understanding of budgeting and fixed and variable expenses… But it may not be their fault. Perhaps, Mom and Dad (or other guardians) have always been paying for all of their expenses, making sure they had a roof over their head, clothes on their backs, and food in their fridge. Because, that is what you’re supposed to do as a parent, correct?
So, while there’s no reason to blame anyone, often the process of learning what it costs to live and pay your bills is a rite of passage.
The current state of debt and financial fears also doesn’t mean that Millennials and Gen Zers weren’t educated around savings or working. Many young people have had part-time jobs (although much less in comparison to Gen X or Baby Boomers) but they may also be able to use the majority of that income for discretionary spending – which never created room for feelings of lack when they didn’t have to pay rent or a mortgage.
This scenario can ultimately create a challenge when you are finally out on your own and now have student loan debt, credit card debt, utility bills, and required car insurance. Especially if you are young person moving to a big city for exploration and/or new opportunities, where the cost of living can be quite high.
If you are feeling nervous or sad around finances, you are not alone. If you have cried over your personal balance sheet or your bank statements, you are also not alone. According to yahoo!money, a recent online survey of 1,004 Americans by CompareCards.com found that,
“7 in 10 Americans said they have cried about money in their lifetimes. Many cited worries over their job or making ends meet. Younger Americans appear the most vulnerable to financial tears. About half of millennials and half of Gen Zers said they cried at least once in the past month over money.”
So how can you cry LESS about money? Well, the first thing is to not be too hard on yourself. But you will also want to create a plan that works for you. Each person deserves financial freedom and not a bank statement that makes them cry on the regular.
Here are some financial literacy resources that may help you figure out how to navigate your way out of crippling debt.
Dave Ramsey Books – The Total Money Makeover – A Proven Plan for Financial Fitness
Bravely Go with Kara Perez – Feminist economics + inclusive personal finance
Debt Relief Programs – you’ll have to do your research but there may be a program that is right for you and an agency that can help you set up a realistic payment program for you
Student Loan Forgiveness – it is worth looking in to your options if you are feeling overwhelmed with student loan debt and there may be ways for your loans to be forgiven
Financial Advisor – consider working with a professional that can help you with your budgeting, investing and retirement savings/funds
And you may still cry because this is big adult stuff… But hopefully you trust yourself to do the research, explore, ask, and find options that work for you to gain a little more control over your financial situation.
If you are not already doing so, it may be as simple as starting with a budget to better understand your income and outgoing expenses. Being informed can help you to plan better for the future and make you feel less like crying.
Win over investors immediately with a great 1st impression
(FINANCE) First impressions are everything, and it’s no different when it comes to approaching investors. We have the tips to win them over.
Going in for your first pitch meeting with investors can be nerve-wracking – especially if you haven’t yet met these investors in person. Fortunately, if you land a solid first impression, you can set the right tone for the meeting, and make the rest of the presentation a little easier on yourself.
But why are first impressions so important, and how can you ensure you make one?
Let’s start with a recap of the benefits of a strong first impression:
- A reputation framework. Our brains are wired to make quick judgments about our surroundings. Accordingly, we tend to judge people based on our first interactions with them, with little opportunity to change those initial judgments later on. If you strike investors as a smart, likeable, and capable person early on, they’ll see your pitch deck in a whole new light.
- Memorability. First impressions stick with people. If yours stands out from the other entrepreneurs pitching these investors, they’ll be more likely to remember you, specifically, and therefore may be more likely to eventually fund your project.
- Personal confidence. If you know you’ve nailed the first impression, you’ll feel more confident, and as you already likely know, confidence makes you a better public speaker. You’ll speak more deliberately, more passionately, and with fewer mistakes.
So how can you make sure you land this impression?
- Arrive in a nice vehicle. Show up in a luxury vehicle, or at least one that’s been recently detailed, sends a message that you’re already successful. This isn’t a strict necessity, but it can speak volumes about what you’ve already achieved, and how you might look when you drive to meet your future clients.
- Dress for the occasion. Along similar lines, you’ll want to dress nicely. You don’t need to have ridiculously expensive clothes, but you should wear standard business attire that fits you properly and has no signs of wear. It’s also a good idea to get a haircut, shave, wear tasteful makeup, and make other small touches that improve your overall appearance.
- Smile. Smiling is contagious, and it instantly makes you more likable. Don’t force a grin (or else you’ll look like a robot), but do flash a genuine smile as often as appropriate during the first few minutes you meet your prospective investors.
- Use your investors’ names. When you speak to your investors, try to address them by name as often as possible. People love to hear the sound of their own names, so it might help you win their favor. As an added bonus, it will help you reinforce your association with their name and face, so you eliminate your risk of calling someone by the wrong name later on.
- Warm-up with something personal. It’s tempting to get down to business right away, especially because your investors’ time is limited, but in most cases, it’s better to warm up with something personal—even if it’s only a few lines of a conversation. Tell a funny joke you heard earlier in the day, or share an anecdote about how your morning has been going. It makes you seem more personable and charismatic.
- Find a common link. If you can, try to find something in common with each of your prospective investors. You might comment that you got your tie at the same place they did, or that you use the same type of pen. Look for subtle clues about their personalities, lifestyles, and hobbies, and forge a connection through those channels. People disproportionately like other people like them, so the more commonalities you can find with your prospective investors, the better.
- Watch your posture. Your posture says more about you than you might think. Keep your back straight with your shoulders back, and walk confidently with your hands out of your pockets. This is crucial for projecting confidence (and feeling it internally as well).
If you can land a great first impression, you’ll set the stage for a killer presentation—but don’t think you’re out of the woods yet. You still need to make sure you have a fantastic pitch deck in place, and enough knowledge on your startup idea to handle the toughest investor questions. If this is your first pitch, don’t worry – it does get easier – but the fundamentals are always going to be important.
Follow these 7 steps to get outstanding invoices paid to you ASAP
(FINANCE) For a freelancer, it’s more important than ever to bring up the issue of getting paid on time. Here are 7 tips to get your money.
For many, an awkward topic of conversation revolves around getting paid. Whether asking for a raise or asking to borrow money, people often feeling uncomfortable when talking money.
This is equally, or possibly even more so, true for freelancers who are solely in charge of their finances. Without a system of weekly direct deposit, freelancers have to work overtime to keep their earnings in order.
The issue with this is that clients also have a lot on their plates, and something as simple as a freelancer’s paycheck is common to fall through the cracks. This causes freelancers to have to work friendly reminders into their repertoire.
However, freelancers may not always be knowledgeable of the best ways to keep their finances in check (no pun intended). Below are seven ways to enhance payment methods.
- You have to be willing to make billing a priority. Due to the fact that money is awkward to talk about, as aforementioned, many let this fall by the wayside. The best way to do this is to keep up to date with your invoices and send them as soon as they are done. Making a calendar specific for billing can help with this idea.
- This second bit dates back to when we were young and learning our manners: it is crucial to be polite. Not only is it the right thing to do, but it also increases speed in payment. Using “please” and “thank you” in invoicing emails are said to get you paid 5% faster.
- It is best to try and keep a complicated concept like finance as simple as possible. Make sure you are creating specific due dates. This will help to signify importance of payment.
- Now that virtually anything can be done online, it would make sense to use electronic payment verses an old-school check. Accepting online payments will get a user paid, on average, eight days faster as opposed to a check.
- This is an important notion to keep in mind for any aspect of your business life: be professional. Invoices are often seen by many eyes so it is best to include your business’s logo on said invoice. This has been found to increase chances of being paid on time by 10%.
- Specificity is urged again in the form of transparency. Make sure you are giving detailed descriptions on each invoice so that anyone looking at it knows exactly what you are being paid for. By doing this, you are 15% more likely to be paid on time.
- While you may be invoicing month by month, try to avoid sending on the 30th or 31st. Being that everyone, generally, sends their invoices in on these dates, it takes 10 – 20% longer to be paid. With everyone sending it at the end of the month, it has a tendency to back up payroll.
The most important thing to remember is that while the topic of money may be awkward, it is your money. If you let a few invoices fall behind because you are uncomfortable reminding your client, this has a way of adding up. Be sure to keep on track with your finances to earn what you are working for.
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