This Social Media Thing Might Catch On!

Over the last two days Leslie Coty of Coty Connections (www.cotyconnections.com) has been doing a class on using Facebook in your small business.  This whole social media thing is so confusing to many small businesses, even me,  and is why we do these classes.

Leslie started off with a cool video about social media in general and the affect it has on our lives.  If you get a chance click on this link and watch http://youtu.be/QUCfFcchw1w 

Even more importantly as a small business owner you need to be aware of the impact social media has, or will have on your business.  Take the necessary time to learn how to use these tools (they are tools just like QuickBooks is for your accounting) to grow your business.  The business owner who fails to recognize the impact social media does and will have on their business, will be sitting on the sidelines as your competitors fly by.

Tom

www.RoanokeSmallBusiness.org 

Health care law and small business

There is a lot of information flying around as to the effect the new Health care law (otherwise known as Obamacare, or Affordable Care Act) will have on small business.  

I hear from small businesses everyday and many of them complain about the inability to obtain decent health insurance for themselves and their employees.  Of course the majority of my clients fall in under the threshold of either 25, or 50 employees so my perspective may be different than those of the small businesses that have more than 50 employees.

For the most part, the new health care law (at least in appearance as that is all we can judge at this time) seems to be good for small businesses.  It will allow them to get coverage through what is called SHOP or Small Business Health Options (I guess SBHOP didn't make sense), and there are tax credits (these are credits, not deductions) which allows small businesses to get some credit back for the premiums paid.

If you want more information you can go to www.sba.gov/healthcare, or click here for a nice summary of the healthcare law on small businesses.

Tom
www.RoanokeSmallBusiness.org 

WOW, The IRS Makes Something Simpler

The IRS has just published a new option for business owners who operate out of their homes.  In the past it was formula based and had to include totals for electricity, insurance, mortgage interest and even depreciation.

For 2013, an individual who operates their business out of their home, and thus is where their office is located, can now use a figure of $5 a square foot, with a maximum 300 square feet ($1,500 max deduction).  No other record keeping is necessary, but you also can't claim any other expenses.  If you file a Schedule A (itemized deductions) you can also claim mortgage interest and taxes on your personal return.

Of course you still have to abide by the general rules of home office deduction which means it has to be a dedicated area (not your dining room table on Fridays) and must be your principal place of business.  There are a few other requirements.  You can also continue to use the old system for claiming deduction if you wish.

Be sure if you are working out of your home and allowed to take this deduction that you do so. It is always nice when the IRS actually makes our life easier.

Tom