How to collect money you're owed

 From  Florida Small Business:  SMALL BUSINESS ADVICE

Gray Poehler | 11/17/2017

Q: Your recent article about managing one’s cash flow emphasized the importance of converting accounts receivables (uncollected money owed to you) into cash in the bank. Can you offer more suggestions how to speed up the collection process without aggravating and risking the loss of the customer?

A: The process of collecting money, while a delicate subject, can be handled in a variety of ways. You must first come to grips with the fact that you are entitled to be paid for your services. It is quite common these days for the provider to ask the customer for full or partial payment at the point of sale. This is the absolute best way to handle the situation. If the customer is disciplined to pay at point of sale, you have eliminated your collection problem.

Remember, once you have rendered the service or released the article for sale, you no longer have leverage with the customer.

Accepting credit card payments also can help, so you may want to sign up for a merchant account with Mastercard or Visa. Be sure to encourage customers to use this option. You do pay a small fee for the service, but it can be built into your invoice, and the cost pales in comparison to those of a collection agency.

Now, there are some instances where the customer wants to see the finished product before payment is rendered. This is especially true with services provided by building contractors. However, there are materials to be purchased and labor to be paid for on a weekly basis. The wise contractor will request a deposit and periodic draws as the project advances, with the balance due at completion.

In those instances where it is necessary to extend credit terms, make sure that your invoice arrives promptly and is clear and concise. It should itemize the charges, indicating how the check should be made payable. Be sure to state that payment is due upon receipt, and include a self-addressed return envelope.

It is extremely important to age your accounts receivables (outstanding monies owed to you 0-30 days, 31-60 days, more than 60 days). Focus first on the largest amounts due, followed by the over 60-day accounts, then work backward. Small business accounting programs such as QuickBooks can easily create invoices and age your accounts receivables.

Finally, if you feel the need to press the customer for payment, send a customized, personal note, not a lifeless form letter. Remind the client of their original promise to pay and ask for full and immediate payment. If no response, by all means get on the telephone. Most businesses wait too long to call.

Martin Kahn, SCORE Counselor

Visit us at: www:scoresouthflorida.net

 

The Baby Boomer-Millennial Bond

Finding and retaining top talent in today’s highly competitive business environment is challenging and complex.   We are five generations in the workforce, all seeking work, but approaching it with very different styles and attitudes.   Organizations are faced with an ever-increasing demand for talent, a shrinking talent pool and a desperate need to groom leadership from within.

The Baby Boomers, who climbed the corporate ladder, and sacrificed personal life balance for success and prestige, are changing the timeline of retirement.  A 2015 Gallup Poll shows that approximately 50% of Boomers age 60 and above are still working, and a third who are 67 and above remain employed. The news continues to report that 10,000 Baby Boomers turn 65 each day.  In the not too distant future, this generational mainstay of the workforce will disappear, except for those resistant stalwarts who can’t imagine life without work and will continue until they drop.  Organizations throughout the world are pondering how to deal with this loss of leadership and sheer volume of experience and how to cultivate the four other generations garnering the best each generation has to offer.

One population, the Millennials (born 1977 to 1995), is cited as being very different job seekers and employees than Baby Boomers.  But are they?  It’s often a challenge to Baby Boomer to understand and work with Millennials, but to also use the differences between them to advance growth, foster mentorship and help them make the transition to leading the future workplace.

I fall on the younger side of the Baby Boomers, and though I’ve always worked well with colleagues regardless of generation, I believe we must make a better effort to bridge the generational divide.

The Pew Research Center reports that more than one-in-three American workers are Millennials and currently represent the largest share of the American workforce. The more I read about them, the more I truly appreciated who they are! The distance between us (Boomers and Millennials) offers bold opportunities for partnership that have the potential to be recruitment and retention game changers when it comes to Talent.  But the trick is speaking to the differences between our generations and then maximizing our strengths to their needs.  As Baby Boomers, we were the corporate ladder climbers, we strived for leadership roles, and trained to reach success by investing in ourselves, working as many hours as possible to catch the brass ring and we were willing to wait or be tapped to achieve it. 

Millennials are confident multi taskers.  They are “can do” believers in their own abilities who want to work in diverse teams and believe that leadership is the ability to make an impact on their company’s success from day one, as well as an ongoing impact on the world community.  They know they need some degree of structure and want training.  They crave challenge and feedback from us, but demand immediate opportunity and respect for their work, and operate in a sphere of social media where constant communication feedback and over-sharing are the norm. They will not be held back and will not stay in a job and wait.  I say to any Baby Boomers struggling with how to turn over the keys, this is not a problem, this is an invitation.  Millennials hold all of the ingredients for SUCCESS! They are tenacious and will use the network and visibility that they have personally crafted to advance to the next opportunity.   They are positioned with strength from Day One and are not afraid of change!  That’s really not so very different from the Baby Boomers, but the Baby Boomers journey and struggle to this same space was perhaps longer and more arduous.

On a recent visit to an Apple store, I watched a Millennial in action and admired his capabilities.  There he was at the “Genius Bar” surrounded by a multitude of consumers, and an ever growing stack of problematic iphones, laptops and ipads.  Jared, the young man, smiled broadly as his hands and fingers rapidly took on the challenges before him.  He knew everyone’s name at the Genius Bar, remembered everyone’s immediate issues and was working very hard and quickly to resolve them.  He was courteous, clear and determined.   It was amazing to watch his cool, confident, eager composure in the midst of total chaos.  One by one the matters were resolved, and yet for every one resolved, there seemed to be four more devices added to the stacked pile and an increase in the crowd watching him.  He thrived on the attention and on questions being pelted his way.   All the while Jared’s eagerness and confidence kept climbing higher while he gave credit to the triple expresso macchiato Venti he enjoyed earlier as the source of his strength and his delight in doing more.   When my own iPhone’s issues stumped him, he impressed me even more by reaching out to his Manager, Joseph (a Baby Boomer), to join the team.  Together, they indeed resolved the matter by collaborating and respecting one another’s input and skills.  It was wonderful to watch the interplay between the two generations and how each of them approached the situation –  each one with his own bag of tricks, but with a united purpose and common goal.

As Managers and Leaders, I believe we must celebrate, foster, support and embrace this generational detente.  It means we may have to change our way of thinking and see the similarities instead of the differences. We must raise up these new young leaders, who – with our leadership, will develop faster if we provide feedback, challenge, praise and acknowledgement.  Help them rise within your ranks instead of seeking a new opportunity elsewhere.   Unless you give them a reason to stay, they will always be looking.  Losing talent is one of the greatest threats to any organization.  A joint study by the firm Millennial Branding and the online career network Beyond.com showed that Millenials leave because they believe they are not in a good culture fit or their goals weren’t in line with their employer. Within their teams and through their focus on work, we commit to feeding the Millennial employee’s quest for balance so that they are given every opportunity to achieve and perhaps even surpass their goals.  Their greatest enemy is boredom, lack of authority to achieve and not enough challenges to quench their thirst for more.   It’s our job to make sure we satisfy the hunger, feed the spirit and provide a bounty of tasks to feed upon.  If they don’t make it after that, they will not have lived up to the meaning of a Millennial.  If they do, they will have the baby Boomers to thank and that will be our greatest legacy of all. 

Jeanine Bondi Banks  SCORE Counselor

Visit us at: www.scoresouthflorida.net

Home Based Business Insurance Needs

Home based business owners need to be aware of special insurance needs to protect their business from potential legal issues due to gaps in coverage from a standard homeowners insurance policy.

Generally, a standard homeowners insurance policy will not cover business operations out of the home.

They also will not cover business equipment and machinery operating out of the home.

This is why owners of home based business generally need to obtain special business insurance to cover business operations from a home.

Below are a common insurance policies home based business owners need to consider:

1-A Liability insurance policy to provide protection if a client or customer is injured while visiting the owners home.

2-An Equipment and Machinery insurance policy to provide protection if these items are damaged, destroyed, or stolen.

3-A Product Liability insurance policy to protect the business owner from product defects and the injuries they may cause a client or customer.

As a home based business owner, you will want to contact your insurance company as soon as you begin your business to insure the appropriate policies are in place to cover potential risks from operating out of a home.

Proper insurance can protect you and your business from various risks when operating your business from your home.

Working with your insurance company can help you obtain the appropriate insurance at the best possible price.

This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

Marketing Tip of the Month

#7 UP CLOSE AND PERSONAL

Send HAND WRITTEN thank you notes to your customers. The digital world in which we live deprives us of the “personal touch”

 

Martin Kahn, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

Florida vs other "large" startes

A recent Kaufman Index Report stated:

“Among the 25 “Large” States in the United States, the state of Florida ranked 3 in Startup Activity, 19 in Main Street Entrepreneurship, and 24 in Growth Entrepreneurship.

Compared to itself in the previous year, Florida ’s entrepreneurial community is experiencing a slight increase in startup activity, a large increase in main street entrepreneurship, and a slight increase in growth entrepreneurship.”

Check the full report for more details.

http://www.kauffman.org/kauffman-index/profiles?loc=12&name=florida&breakdowns=startup-activity|overall,main-street|overall,growth|overall

How does your business stack up?

 

Steve Koenig, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

Florida Atlantic University Tech Runway

 

FAU Tech Runway presented the inaugural Maverick Reception Awards to individuals who made outstanding contributions to the mission of FAU Tech Runway.

The Maverick Mentor Award was given to Philip Voluck, an FAU Tech Runway Mentor Board Member, for his boundless dedication to the Mentoring Program.

Phil is a SCORE Counselor as well.

Great job Phil..

C Corporation Tax Return Filing Requirements

 

A Regular C Corporation MUST file an income tax return using Form 1120, even if is has no income or tax due.

FORM 1120 NEW FILING DUE DATE

For tax years beginning after December 31, 2015, Form 1120 must be filed on or before  the 15^th day of the 4^th month following the close of the corporation's tax year (April 15 for calendar year corporations).

Form 7004 must be filed on or before the due date to request an automatic 6 month extension of time to file Form 1120.

 

DUE DATES FOR QUARTERLY ESTIMATED TAX PAYMENTS

A Regular C Corporation that anticipates a tax liability of $500 or more must estimate its taxes and make quarterly estimated tax payments.

The quarterly estimated tax payment due dates are the 15^th day of the 4^th, 6^th,9^th, and 12^th months of the tax year.

A Corporation that does not make quarterly estimated tax payments when due may be subject to an underpayment penalty for the period of underpayment.

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

#6  TAKE A CARD, ANY CARD

Produce separate business cards and sales literature for each of your target markets, for example govt and commercial or business and consumers.  Don’t try one size fits all, it’s often confusing.

 

Martin Kahn, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

 

Handling a stinking neighbor

If your business is located in rented space above or alongside a neighbor that creates an odor causing discomfort for your employees, clients and/or yourself, what do you do?

Let me describe one such situation by way of example.

In this example the business that moved in below was a nail salon generating noxios and potentially dangerous odors. The effort started by working with the new business owner, who attempted to mitigate the odors without success. The next step was to work with the landlord, who initially refused to recognize the issue, then came around and began working with his new tenent, again without success. The property was part of a condominium, so the next step was to the condo management, who was aware of the issue but took no action to this point. They wrote a letter to the landlord requesting a meeting. Step four was to get the state environmental group engaged, even though they said they only deal with odors in the “external” environment, not inside a building. So they engaged the town officials to deal with “inside” issues. However, when it became clear that any mediation would move the odors outdoors, the state agreed to investigate.

When the town and state officials engaged with the salon business owner, he agreed to relocate his business where he might be able to successfully mitigate the issues. This process took some six weeks with both businesses and the landlord taking losses. There was another step planned but not implemented: legal action.

How would you handle this type of issue?

 

Steve Koenig, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

 

Special Mentor of the Month

 

We are delighted to shine the spotlight on a distinguished member of our staff who by his or her efforts brings great credit to our organization. This month we are honored to salute:

JOEL MOSES

 

When Joel joined our Chapter a few years ago, we knew we were bringing aboard someone who would immeasurably add to the skills and expertise we provide each and every day to the many clients who seek our services. Joel is a practicing Organizational Psychologist with 40+ years of service to American corporations, large and small. Utilizing his significant skills Joel has guided companies and coached executives and managers across the country.

His knowledge, analytical skills, and leadership qualities have stood the Chapter in very good stead with his many clients, and were particularly useful this past Fall when the Strategic Planning Committee was first charged with developing our Future Goals. It was only natural therefore, that in that setting everyone quickly turned to Joel to lead and guide us thru the many processes that needed to be utilized in the development of the final Plan. And it’s fair to say the longer the Committee met, the more they respected and turned to Joel for the quiet guidance he consistently provided. The final product, which garnered the unanimous support of the Executive Committee in July is a significant document, much due to Joel’s tireless leadership.

Now, fresh from that assignment, Joel is busily at work, serving on the brand new Certificate Course Academy workshops. There, he is developing a Course that will teach business owners how to find, hire, and develop talent, an invaluable asset in the development of any small business. And Joel will be the main speaker at this all-day event, which he is creating, as one of six that will be offered in the coming year.

To know Joel is to know a family devoted to community service. We proudly salute you, Joel, and gratefully acknowledge you as our Special Mentor of the Month for October, November, and December 2017.

 

 

 

Partnership Tax Returns Requirements & Penalties

 

A partnership, including a Limited Liability Company treated as a partnership for federal income tax purposes, is required to file Form 1065 for EACH partnership tax year.

NEW FILING DUE DATE

For tax years beginning after 2015, Form 1065 is due on or before the 15^th day of the 3^rd month following the close of the tax year (March 15^th for a calendar year partnership)

Form 7004 is used to apply for an automatic 6 month filing extension and must be filed on or before the due date of the tax return.

Failure to File Penalties

A partnership that fails to timely file Form 1065 or files an incomplete return is liable for a penalty of $195 PER PARTNER, PER MONTH up to a maximum of 12 months, unless reasonable cause is shown.

Reasonable cause depends on the facts and circumstances of why the tax return was filed late and is the responsibility of the Partnership partners to prove to the IRS. Examples such as the death of a partner or a partner's family member, a natural disaster, a major illness or disability, a bona-fide financial hardship, destruction of business records, etc. may allow the IRS to forgive or recude lae filing penalties.

A Partnership must also furnish EACH PARTNER with a Schedule K-1 on or before the due date of Form 1065.

The Partnership may also be subject to penalties for failure to furnish Schedule K-1 to its partners.

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

Marketing Tip of the Month

#5  BARTER, BABY, BARTER

 

So “old school” yet so good.  Offer discounts to members of certain clubs/professional groups/organizations in exchange for promotions in THEIR  publications.

 

Martin Kahn, Score Couselor

Visit us at: www.scoresouthflorida.net

 

 

 

Getting Things Right

I have an old inflatable dingy with the material around the oar locks deteriorating in such a way that anything or anyone that brushed against this area came away with black stains. Clothing, hands, arms, legs, etc. all stained black. This apparently comes about after years of use. The manufacturer was no longer in business. There is some advice on line suggesting adding oil, others suggested using a wax covering. Nothing seemed to work. At one point I even had a set of covers made to reduce exposure to these areas. I was emotionally attached to this inflatable that I purchased new a long time ago.

After a long search and discussion with friends, I finally found a local company that sells and services inflatable dinghies. After discussing the issue over the telephone, the business owner suggested that his staff was creative and would like to see the problem. My first reaction was that a possible solution was near, and I was thankful, even though this business was not located near an ocean, river, bay or any body of water at all.

A few weeks later I was able to transport the inflatable overland to the business so they could see the problem. Their initial reaction was not positive. The age of the dingy was a factor. A sales person suggested purchasing a new one for about $2500.00. One of the service managers said, there was a possibility of damaging the inflatable with some of the approaches I suggested. He also stated that they could try but would not warranty the work and suggested a price of about $600.00 to possibly create a repair as parts were no longer available from the manufacture. I asked that they try, but that the price suggested was more than I thought I would have to spend.

Three days later I received a phone call from the administrator of the business and she told me the work was completed. She informed me that they were able to locate a paint material and glue it in place over the faulty area of the inflatable, and the cost was just under $200.00, including a full check out of the dingy.  Wow, was I pleasantly surprised.

The service manager told me he came up with this solution after thinking about the problem for a while. I thanked him profusely.

I have already recommended a number of people use this firm.

 

How creative are your employees? Do you promote their skills?

 

Steve Koenig, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

 

S Corporation Tax Returns Requirements & Penalties

 

Because the penalties for timely filing a required S Corporation Tax Return, Form 1120S are steep, the following information will help you avoid expensive, and very often unexpected IRS penalties.

 

 

S Corporation Tax Return Filing

 

An S Corporation is REQUIRED to file Form 1120S for EACH tax year that the election to be treated as an S Corporation is in effect, REGARDLESS of whether the S Corporation has taxable income for that year.

 

Form 1120S is due on or before the 15^th day of the 3^rd month following the close of the tax year, (March 15^th for a calendar-year S Corporation).

 

An S Corporation may obtain an automatic 6 month extension of time to file Form 1120S by filing Form 7004 on or before the due date of its tax return.

 

AN S Corporation must provide EACH shareholder a copy of the information shown on Schedule K-1 that is attached to Form 1120S. Schedule K-1 must be provided on or before the day the S Corporation files Form 1120S.

 

Failure to File Penalties

 

An S Corporation that fails to timely file Form 1120S (or files an incomplete tax return) is liable for a penalty of $195 PER SHAREHOLDER , PER MONTH for a maximum of 12 months, unless reasonable cause is shown.

 

Reasonable cause depends on the facts and circumstances of why the tax return was filed late and is the responsibility of the S Corporation Shareholder(s) to prove to the IRS. Examples such as the death of a shareholder or a shareholders family member, a natural disaster, a major illness or disability, a bona-fide financial hardship, destruction of business records, etc. may allow the IRS to forgive or reduce late filing penalties.

 

An S Corporation may also be subject to penalties for failure to furnish Schedules K-1 to its shareholders, unless reasonable cause can be demonstrated.

 

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

Counseling for Business Success

Take the next step to prosperity,  become a SCORE client

Your ideas will be fully protected by Federal laws, with confidentiality guaranteed. You will receive pro bono business mentoring from America's premier business organization (since 1964) You will have unlimited free access to 30 different business executives, from former CEO's, CFO's, attorneys, accountants, engineers and small business owners, etc You can meet at our Boca Raton offices or yours or request SKYPE or FaceTime mentoring (you may even qualify for an Advisory Board) Take action to Rocket your dream to reality. Call us now. Will you be the next client to make it to Shark Tank? Hal Finkelstein, Chairman SCORE 7999 N. Federal Hwy Ste 201 Boca Raton, Fl. 33487 561-981-5180 Office hours Mon-Thurs 9-1

Marketing tip of the month

#4 I CALL THIS INTERNAL MEDICINE

Get a Marketing Intern from an area college to take you on as a client. It will give the intern experience and provide you with some free marketing help. And you’ve got some great Business Schools right here in FAU and Lynn.

Martin Kahn - SCORE Counselor
visit us at: www.scoresouthflorida.net

How to lose customers

Recently I had the need to check the air in the tires of my car. I attempted to use an air machine installed at a local gas station. The machine took my credit card and charged $1.50 for a few minutes. On the first tire it became obvious that the machine was not functioning.

The attendant in the convenience store at the gas station, to which the air machine is attached, said they had nothing to do with the air machine and refused to either take note of the failed machine or provide a credit. I left and went to another gas station/convenience store with yet another air machine that functioned properly, for a fee of $0.50. That’s right one third of the cost and it worked!

Guess where I buy my gas and other items now. Want to guess where I tell my friends to stay away from?

I also found a local ‘service’ station with free air.

How about your business?

Steve Koenig, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

 

 

 

You Get The Business

Here is a case of the early bird winning the race.

My wife noticed that the washing machine water mixing valve was leaking. I checked and we determined that the valve needed replacement. We felt it was best to have a plumber handle the task. We called the plumber normally used by our association and were told they could get to it in about three weeks! Our Property Manager suggested two other plumbers. We called. One said they were not taking on any new clients! Two had answering machines on which I described the job and requested a return call. One of the answering machines had a recorded message: “we respond to emergencies and normal repairs”. Eight hours later, neither returned my call. But we did not wait around. We found a plumbing franchise that said they could do the job. They also had their technician call to determine if he had the part on his truck. He did! We possibly paid a bit more, but the job was done with a one year warranty on parts and labor. We called back the firm that schedule us for three weeks out, and told them to cancel it. We also left a message for the firm that said they did emergency work and told them then needed to delete that.

How responsive is your business?

 

Steve Koenig, SCORE Counselor

Visit us at: www.scoresouthflorida.net

 

Accounting Periods

Taxable income is computed on the basis of a taxpayer's tax year.

Tax Year of 12 Months

A tax year is the annual accounting period regularly used by a taxpayer in keeping books and records to compute income.

There are two common accounting periods.

1-Calendar Year (a period of 12 months ending on December 31).

2-Fiscal Year (a period of 12 months ending on the last day of any month other than December).

Short Tax Year

A short tax year is a period of less than 12 months and is common when a new business comes into existence after January 1 of its initial year and or when a business closes sometime during its last year in existence other than on December 31.

Keeping Business Records

A taxpayer should keep business records based on the accounting period used for computing taxable income when filing income tax returns.

Certain business entities MUST use a specific accounting period prescribed by the IRS

An S Corporation or a Personal Service Corporation must use a calendar year unless the entity can establish a business purpose for having a different tax year. A Partnership must use the same tax year as that of its owners, unless the entity can establish a business purpose for having a different tax year.

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

 

Marketing Tip of the Month

#3  LESS IS CHEAPER, MORE IS BETTER

OK, this street runs North AND South. Here are 2 choices for you to ponder in your marketing. ONE:  Offer a simpler/cheaper/smaller version of your product or service. TWO: Just the opposite: Offer a fancier/bigger/more expensive version of your product or service. Think about it: Is what you’re offering now absolutely the only and best way? This one trick could change your whole business.

 

Martin Kahn, SCORE Counselor

visit us at: www.scoresouthflorida.net

 

Stop The Pressess

It's not every day when an American company gets elected to the "Inc. 5000"., but this year, right now, one of our very own clients has been selected for this honor, recognizing  his company as "one of the fastest growing private companies in America."

The honoree is Ankit Jain, and his journey began right here, in our Boca office, when he walked in a few years ago to say he had left his very good job because he wanted to start a company selling ear buds.

The Counselor he met that day, who has nurtured him, coached him, guided him, is our own HerbDouglas, who, aided  by various colleagues thru the years, has guided "The Ankit Company" to national and international recognition and growth, with a growing catalog of items..

This is an extraordinary honor, and we all salute Herb for being the Man behind the Scenes, helping make it all happen.

SCORE South Palm Beach Shines Today, Brighter Than Ever.

Martin Kahn, Score Counselor

Visit us at: www.scoresouthflorida.net

 

Business DANGER signs

I came across a good article by Rhonda Abrams in USA Today that I thought would be of interest. The article focused on Danger signs that your business could fail. So, I list those signs here:

1. You cannot pay your bills

2. Sales are dropping

3. Employees quit

4. There is no competition

5. Large competitors are showing up

6. You cannot handle the growth

7. The business is in turmoil

 

Any one, or a combination of these, are signs that the end may be near.

Seek Help ASAP

 

Steve Koenig, Score Counselor

Visit us at: www.scoresouthflorida.net

 

 

 

 

 

Mixing Business and Personal Accounts Don't Do It!

 

The tax law requires all businesses to maintain an accurate and complete set of business records that clearly reflects business income and business expenses only.

Too often though, business owners commingle their business and personal accounts.  And this can lead to all sorts of problems, including tax, non-tax, and legal problems down the road.

Business owners must keep separate business income and expenses from their personal income and expenses, and here's why:

1-To file accurate and complete tax returns that clearly reflects business income and expenses only.

2-To minimize a potential tax audit and unfavorable outcome.

3-To avoid potential legal issues with customers, vendors, creditors and other related parties.

4-To avoid having the business involuntarily dissolved and or challenged in a court of law.

5-The tax law requires it.

6-To prepare proper financial statements (and obtain clean audits and reviews is applicable).

7-To present to prospective buyers accurate and complete financial statements and tax returns.

8-To present to possible creditors to obtain financing.

9-To avoid potential legal issues between the business owners themselves.

Thus, all businesses must give careful consideration to proper record-keeping day from day one to ensure they meet their obligations to society as a whole.

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

 

 

 

 

Special Mentor of the Month

We are delighted to shine the spotlight on a distinguished member of our staff who by his or her efforts brings great credit to our organization. This month we are honored to salute:

 

JOHN ANKERMAN

 

 

 

John has been an exemplary Mentor with our Chapter ever since joining in December 2008. In that time he has shared his extensive business expertise with hundreds of SCORE clients, always assisting them with care and understanding. And it is those hallmarks that we salute in John, as we honor him as our Special Counselor of the Quarter, for July, August, and September.
At the same time we would be remiss were we not to extend a very big Thank You for the yeoman service John has provided to our Chapter every year he has been a Mentor with us, by being the “guy to go to” to make our Annual Business Conferences the major successes they have been. It is John, more than any other person, who has handled a myriad of tasks at each of those events over the past 8 years that we have been doing them. It is John who has gone to the site in the very early hours of the morning, before sunrise, to see that important signs are placed in strategic locations to direct attendees arriving on campus. It is John who has run the vital errands to get and transport the cases of water, the many trays of food, the cases of soda, safely bringing them onsite, then carrying them to point of use, many times all by himself.
At the office you will often find John at the computer, entering his notes and observations about his clients, after first gathering all the needed information sought in our Global Profile, and doing it in a way that has earned him the admiration of his fellow Counselors. Even when his outside business commitments demanded much of him, John has always found time to be of service to others.
In the long history of our Chapter, which was founded in 1977 in a little storefront in Delray Beach, we have been blessed with the outstanding services of many fine men and women. It is to that Pantheon of leaders that we now proudly add the name of our friend, dedicated Mentor, and superb human being, John Ankerman.
 
Take a bow, John, you have richly earned the designation of our Counselor of the Quarter for July, August, and September 2017!
 

 

Marketing Tip of the Month

 

#2. Q & A WITH YOUR CLIENTS

Do you REALLY know why your customers chose you? Was it price, service, quality, all 3? ASK them: Why did you choose me and how can I serve you even better? Wow, so simple. Talk to your customers!

Martin Kahn, Score Counselor
visit us at: www.scoresouthflorida.net
 

Tax Identity Theft

  

Tax identity theft occurs when someone uses your Social Security number to file a tax return claiming a fraudulent refund.

 

You may be unaware that this happened until you e-file your return and discover that a return already has been filed using your Social Security Number. Or, the IRS may send you a letter saying they have identified a suspicious return using your Social Security number.

 

Know The Warning Signs

• The IRS sends you a letter indicating possible identity theft.
• More than one tax return was filed using your Social Security number.
• You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return.
• IRS records indicate you received wages or other income from an employer for whom you did not work.
• Your e-filed tax return is rejected by the IRS indicating a return has been filed using your Social Security number.
   
  Steps to take if you become a victim
   
• File a complaint with the Federal Trade Commission at www.identitytheft.gov
• Contact one of the three major credit reporting bureaus to place a fraud alert on your credit records:
  Equifax 800-766-0008
  Experian 888-397-3742
  TransUnion 800-680-7289
• Contact the IRS Taxpayer Identity Theft Division 800-908-4490
• Contact your financial institutions, credit card companies, and any other entities you do business with.
• Respond immediately to any IRS notice.
• Complete IRS Form 14039 Identity Theft Affidavit.
• Continue to file your tax returns and pay your taxes even if you must do so by paper.
• File a police report with your local police department.
• Report suspicious online or emailed phishing scams to: phishing@irs.gov
• Report phone, fax or mail phishing scams by calling 800-366-4484.
• Request a copy of fraudulent returns using IRS Form 4506-F.
   
   
  How to reduce your risk
   
• Do not open, click on, or download attachments from suspicious emails.
• Protect you personal data.
• Make sure your tax records are secure.
• Do not give out any personal information over the telephone (do not get into conservations, simply hang up immediately).
• Request a FREE IRS Publication 4524 Security Awareness for Taxpayers by calling the IRS at 800-829-3676
• If you are unsure about an IRS letter's authenticity and whether it came from the IRS, go to IDVerify.IRS.gov and follow the prompts to verify your identity.
• Check with your state to see if there are additional steps to take at the state level.
   
  REMEMBER: THE IRS DOES NOT INITIATE CONTACT WITH PAXPAYERS BY EMAIL, ELECTRONIC COMMUNICATION, TEXT MESSAGES, OR SOCIAL MEDIA CHANNELS.
   
  This article was written by Donald M. Scherzi, CPA, CFP, LLC
  Mike Lupo, SCORE Counselor
  Visit us at: www.scoresouthflorida.net