Category Archives for business

1099 Forms

1099s must be issued to people you have paid over $600.00 of proceeds to in the calendar year. 

In past years the 1099-MISC was used for all forms of payments, however new in 2020 the IRS added the NEC form and re-arranged the boxes on the forms. This is how filings are now broken down:

File Form 1099-NEC to report payments of $600 or more to non-employees (contractors).

File Form 1099-MISC for each person to whom you have paid at least $600 or more in:

  • Rents.
  • Prizes and awards.
  • Other income payments.
  • Medical and health care payments.
  • Crop insurance proceeds.
  • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
  • Payments to an attorney.
  • Substitutes in lieu of dividends or interest
  • Any fishing boat proceeds.
  • Deferral of payments
  • Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Most up to date software has accounted for this change, such as Quickbooks Online and Quickbooks Desktop 2020. However, be sure to speak with whomever prepares your 1099s to confirm if you or they have the right software and documents ready.  All forms must be issued to recipients by January 31st and filed to the IRS by March 1st. 

If you are confused or uncertain about any of these guidelines visit:

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

Extended Tax Deadline

With everything going on recently in the world it is easy to forget that the federal tax deadline was extended all the way out until July 15th!  

If you still haven't prepared or filed your personal tax returns, I may be able to help.

Disclaimer: I am not an Accountant, CPA, or tax professional but I can walk you through the tax process and help you answer some of the wording questions so that you don’t have to spend your hard earned money on those services! Send me a message, email or call to discuss.

3 Tips for Working at Home

​With the recent outbreak of Covid-19 in the United State a record number of people are finding themselves working from home that never have before.  If you are struggling with how ​to create a space to be productive and efficient in your home, here are my 3 quick tips for you:

1. Create a dedicated work space

2. Make sure you have good lighting

3. Make your space comfortable

Watch my full video discussing these tips below!

5 Business Organizational Tips for Startups

Correct me if I am wrong here, but every year when you prepare to file your taxes, personal and business, you probably notice things you could have done better. You probably say, okay next year I will make this easier for myself. I will organize this better, keep better receipts, update my spreadsheet more often, separate your personal and professional finances, whatever it is, right?

Well having just completed my first full year as an LLC and preparing my business taxes, while also walking another start-up through the process, my hindsight is 2020. I thought that after 10 years of keeping other business’s finances and operations in order, I would breeze through the process, but there was more to it than I imagined and quite a few bumps along my road. So here are my 5 organizational tips for start ups or small businesses that I recommend you put into practice right now, before the year runs away with you. That way you can work more efficiently this year and be better prepared when tax time rolls around next year.

1. Register your business and trade name locally and nationally. This is really a 3 fold tip.

  • Decide and research your preferred business name locally, national and on the web.  It is critical that your business name and website clearly reflect your services. So if you find it is not being used, purchase the domain, for the company and register the name. If you are unsure of exactly what services you will provide, then it is valuable to form your company with a more general name now and specify a trade name when you arr ready. For example you could form XYZ Enterprises LLC doing business as (trade name) Xciting Parties and Events and have the room to expand your services to rentals, catering, etc. later. A more obvious example is forming Smith Services LLC for Joe Smith the business coach. Or you may create the Carolina Association of Tabbycats d/b/a C.A.T.S. There are many options, but it is good to have a plan of where your business is headed and how you want to present yourself now.
  • Depending on your circumstance, you may need an FEIN (federal tax ID number). However I suggest asking an accountant, business consultant or reaching out to local small business resources, such as the Maryland Women’s Business Center, for their recommendation before going through this process. It won't hurt or cost you anything to acquire a number, but is time wasted if you do not use it.
  • Research your state laws. In Maryland there is a personal property tax assessment for businesses. If you start your business at the end of a year and don’t actually do any business, you still owe the tax assessment (I speak from experience). In sum, register when you are ready to hit the ground running. Additionally in Maryland and Virginia, you can be your own Registered Agent (to receive legal information and documents) for your business. If you use Legal Zoom or another digital company to assist you in forming your business Articles, you do not need to pay for their Registered Agent services. An attorney can also assist in starting your business, drafting and filing the documents, and even acting as your Agent, if you so choose. So consider your options and research your state laws.

2. Pay estimated taxes – This is really a tip just for LLCs or self employed individuals and please consult your accountant to discuss your potential annual earning and tax filing plans. But in general, as an LLC or a sole proprietor you will owe quarterly estimated taxes on any income earned. I did not start earning income until halfway through my first year, at that point I had missed two quarterly payments and could have been penalized at filing time. So even if it is hard, I suggest paying something to federal government throughout the year to avoid fees. If you still have another source of income, such as a part or full time job, pay some additional withholding from your paycheck, based on projections of your gross annual income or historical income. Again, please consult with an accountant or tax specialist for details instructions.

3. Get your spreadsheets in order now – For many small start ups, finances are kept on spreadsheets due to the ease of use and access to Microsoft Excel, Google sheets, etc. This is a great way for you to keep track and share your finances with others when the time comes, however there are a few things I would suggest so that you are not the only one who understands the information.

  • Try not to over complicate. Use columns for incomes and expenses, payee and dates. If you want to note the category for the income and expense in notes or next to the amounts, do. However breaking down the sheet into many columns and rows may just make your life and finances more complicated than simple.
  • Use the “Accounting” format all dollar amount boxes and be sure to enter any expenses as a negative number. This will allow you to get a quick understanding of your finances at a glance will skimming through.
  • Review your spreadsheet monthly with your bank statement to reconcile the transactions and be sure you didn’t miss anything. Taking an hour every month will be much more efficient that 10 hours at the end of the year.

4. Open up a business bank account and if you need it, credit card – While single member LLCs often file taxes as part of their personal filing, I can’t emphasize enough how important it is to separate your finances. A separate bank account will almost eliminate the “co-mingling” of personal and business finances as long as you use the account properly (e.g. dinner with the family on personal credit card and lunch with your client on the business card). Not only will you be able to view your financial situation in real time, but most importantly preparing for taxes will be exponentially more efficient. You will not need to track down the purchases within your personal bank account to pay yourself back or calculate how much you earned or lost. You may not even need the spreadsheet! Plus, your tax accountant will thank you. Bear in mind in order to open this business account, you will need your Articles of Organization or Incorporation from forming your business, your state registered filing, your company FEIN (if applicable), your proof of ownership, and your proof of identity. If you registered a trade name, that documentation as well.

5. Migrate over to accounting software – If you are opening a bank, have grown out of the simple spreadsheet functionality, or are just not great with them, the next step is to incorporate accounting software. To many people, it sounds complicated, but these days it can be very simply. I am partial to Quickbooks. For bookkeeping clients I use Desktop version for all of it’s versatility. But for myself I use the basic Quickbooks online. It costs me $25.00 a month. If you don’t want Quickbooks or are interested in other platforms, there are many that offer basic to intricate functionalities. Freshbooks is a common alternative. For most small businesses you will at least want: direct connection to bank accounts, reporting on finances, reconciling, email invoices, and ability to provide access to your accountant. However if you provide goods, you may need to ensure you have the ability to track and manage your inventory. So you will want to research and ask industry peers for recommendations. If you start now, you can back fill the information from the beginning of the year quite easily and go from there. Then preparing for your tax filing next year will be clean from Jan 1 to Dec 31. You can just send a copy to your accountant with your 1099s, W2s, or other tax documents and wait for additional questions.

Now I am not a tax accounting, an attorney, or an expert in any of these areas, but this past year has definitely shined some light on the process of starting, running, and keeping finances for my own business. So if you need help, reach out to your local resources, don't be afraid to ask a friend or peer ask for an attorney or accountant referrals, and request a consultation. You may have to pay a fee and put some effort into the process now, but it will be worth your time and energy further down the road. However, don’t let any of these things stop you from following you heart and starting your own business either. They are all navigable with the right resources and team behind you! I am happy to help connect you with resources and assist where I can in this process.

On the Winds of Change

In the last few months, the winds of change have blown and I got a carried away. But don't worry, they blew me in a wonderful direction! Many business meetings, networking events, coffees, and contracts later the demand for business operations and organization skills has grown exponentially.  That being said, I thought it right to shift the business in a way that reflects the direction the wind is blowing.

After much debate, I am proud to announce that we are now myForte Consulting, dedicated to assisting home and small business owners achieve streamlined operations and organization.  From your bookkeeping to your bookshelf helping you find balance and peace of mind isn't just my specialty, it's my forte!

Be Do Have

This time of year is often a time of preparation. Whether you are a homemaker, business owner, employee, or combination of both you are probably beginning your preparation for the holidays, family visiting, winterizing, end of the year finances, last minute projects, deadlines, etc. With preparation, also comes reflection. Reflection of your accomplishments for the year, the goals you had, those that you achieved, those you surpassed, those your missed and then considering why.

In my monthly Business Owners Mastermind meeting this week, we started the conversation on end of the year preparations and reflection and came upon what I thought to be a very interesting topic that can be applied to personal or professional life. Jeff Miller, our faithful leader, business coach and owner of Jeff Miller Consulting, posed to us an exercise to consider this equation:

In order to solve this equation, we have to consider it from the answer backwards, just like Jeopardy. First we considered what we want to have, i.e. what are goals are as business owners. We mentioned things like:

  • Take 2 weeks vacation
  • Have time with family
  • Have time for ourselves (exercise, reading, learning, etc)
  • Own a second home (or in my case a 1st!)

Then we had to determine what we need to do in order to get there, most of which are obvious:

  • Make and schedule time (Time management)
  • Make more money
  • Have trusted employees
  • Set boundaries for clients/customers

Lastly, we were asked to think about what type of person we need to be in order to accomplish these tasks? This was the hardest part of the exercise because you can reflect on your goals all you want, but without seeing the true nature of how to achieve them, you will not get very far. So in order to do those things listed, to achieve the goals, we need to be:

  • Disciplined
  • Dedicated
  • Honest
  • Trustworthy
  • Determined

Because if you want to make time to exercise for example, you may need to get up earlier, before work, before the kids get on the bus, or after they go to sleep. If you want to take a two week vacation as a business owner, you need to train your employees to the best of your abilities, give them responsibility and confidence that they can take care of the company and your clients while you are gone, and trust them to do so. If you don’t think that is possible, then unfortunately you either 1) haven’t provided them with the tools or training to succeed 2) need to started delegating and trusting more or 3) you don’t have the right employees.

In the end however, it is about how you are a person and what you do that will bring you the things you want to have.

The Honest Truth

Can we be brutally honest with each other for a minute?

If you are a business owner, you should not be doing your own bookkeeping; hand writing or printing checks, paying the bills, downloading credit card transactions, reimbursing cash receipts and expenses, etc. In the last few months I have met and talked to a number of business owners in the same spot at you are in some variation of it. Owners of startups, growing business, even established ones too, who say that they do all or part of the finance management.

I don’t want to come off rude, that’s not my intent here, but this just shouldn’t be. I know it is hard to let go of the control of making sure that every cent is accounted for when the business is your baby; your idea that you created, cultivated, and put into motion. It’s like letting go of the handle bars on your child’s first bike ride. But you have to do it sooner or later, otherwise your baby will never grow and prosper.

In this world, time is money. And your time is worth a lot of money. I am willing to bet that your hourly wage is a lot more than paying a bookkeeper, so the argument that you don’t have enough money to pay a bookkeeper, that doesn’t really work here. For every working minute you are working on tasks that are not 1) part of your scope of work or 2) business development, you are wasting your time and money. What does that mean? Well, unfortunately that means that you are not only not making money, but you are also losing it.

Don’t believe me? Well without going into too much of a cost analysis, if you bill your services at $150 an hour and a bookkeeper charges anywhere from $55-$85 an hour, for every hour you personally spend on financial tasks, you are losing $65-$90 an hour that you could be making elsewhere. Just let that sink in for a minute.

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So why not find someone you can trust and have faith in, who can take care of your finances and report all of the details to you?  It doesn’t have to be me (although I would truly love to help you take these services off your plate and start putting more time into your business), but it should be someone capable and qualified, not uncle Bob or your neighbor.  How about making that a 3rd or 4th quarter goal you can feel good about and let me know how it goes.

8 Mid-Year Business Tips

As the summer winds down and kids are going back to school, it is a great time for home owners and businesses to start getting their heads back in the game and considering their end of the year preparations.  Here are 8 mid-year finance and operation tips I put together from my 11 years of experience managing businesses. Please keep in mind, some recommendations may not apply due to the the size, industry or fiscal year of your company, but it is important to be aware and discuss these topics with your bookkeeper, CFO and or accountant.

Finances

  • Complete a brief review of your books, checking for errors in the accounts expenses and incomes were attributed to.  Correcting an error now will help you avoid 1) repeating it and 2) having to correct (or pay your accountant) at the end of the tax year.  If you expect to be audited, as many government contractors do, get ahead of those preparations early!
  • Forecast the rest of your fiscal year. If you know you historically have slow or heavy business in the second half, you will want to start planning for your upcoming expenses, incomes, and even HR needs.
  • Depending on your previous review and forecast, start saving for taxes, employees raises, bonus, and any slow periods. If you know a heavy business load is coming, you can also plan out how to use funds for the rest of the year and pay off debt from earlier in the year.
  • Have your Tax Accountant of CPA take a brief look at your reports as well. Not a full analysis, but a review. If you can afford an early tax payment after a good half of the year, you won't have to worry as much come the end of the year.

Operations

  • Depending on your financial status, or your HR needs, you should consider any upcoming hiring early. You will need at least 2 but usually 3 months to put together an employment description, advertise, interview, hire and onboard.
  • Whether or not you are hiring now, any down time or before you have requirements, is a great time to review your employment descriptions, policies, procedures, and handbook. You should consider your current office, company culture, employees, and the direction you want your business to go in and then be sure that your documents all reflect that.
  • Organize and declutter! (I couldn't resist). Gather up old documents, records, files, receipts that are past 7 years and take them to be shredded.  Now 7 years is the general standard, but be sure to check with your industry specific standards and legal requirements.
  • Start considering your business goals and intentions for next year. It is never a bad time to start working toward those and some may need a little prep work before they can be achieved.

And of course, if you are feeling overwhelmed, confused or interesting in having assistance with any of these tasks, I am here to help!  Please do not hesitate to contact me.  Have a great rest of your summer!

My Journey into Owning My Own Business

One of the things I have been asked frequently as of late is how I got into this business.  While a lot of this information can be found on the About page, I thought I would give everyone a little bit of my back story, pull all of my thoughts together into one place to explain My Journey to Home Organizing, Staging and Redesign.

I was born and raised in a small town in Connecticut. We had two tiny gas stations, an orchard/petting zoo, and a few stop lights.  No other commercial business were and are allowed to this day. Starting at a very young age, every few months I would get the itch to reorganize my life. For a child this essentially just meant my bedroom. I would go through my clothes, books, and accessories to get rid of the things I wasn’t using, either by donating them to the church where we served hot dinners once a month, having a “tag sale” or just throwing them away. Once this started, it would inevitably end with my mom finding me dragging my furniture across the room to create a new and more pleasing layout. I'll tell you a secret, I always thought the girl in the mirror had a cooler room than me. I may have grown up, but that itch has never ceased.

After graduating from Emory University in Atlanta, I spent a year doing AmeriCorps service across the country. During that time I got my first real taste of the home improvement industry, working alongside volunteers and professionals at Habitat for Humanity in New Orleans and Miami. I specifically worked on framing and roofing. However, when my service was completed, I assumed it was time to start working in the "business world" So I began my professional career in the Residential Property Management field, something that related to homes but required bookkeeping and administration. Over the years I excelled in financial management, business management, operations, and social media marketing. In 2015 continued to achieve my Master of Business Administration (MBA).

So in 2013 when my father expressed his desire to renovate his New England Colonial house as well as a concern that he would not be able to manage everything with his busy travel schedule, I saw an opportunity. See after graduating from college, I had got my first taste of home improvement while completing a year of AmeriCorps service; working alongside volunteers and professionals at Habitat for Humanity. My father knew that I had loved the work. Due to some extenuating circumstances outside of my control, my long time boyfriend and I found ourselves in a position to make a move. Therefore he and I decided that I would move home and become the general contractor and designer on hand for my father's project.

Over the next year and a half, I supervised the renovation of the kitchen and four bathrooms, as well as the overall organization and redesign of the rest of his home, inside and out. We addressed a variety of items that had just been overlooked in the last 30 years ranging from pulling down the dated wallpaper, to refinishing floors, sealing the home, upgrading the electric, landscaping, and more. And I loved it! It was amazing to see how the small and large changes not only upgraded the quality of the home, but also my father's life in it. He would like to move out of the old family home one day, maybe not right this minute, but now it has evolved into a modern Colonial home with those options available.

While I was home, I also saw up close the snowball effect that "collecting" can have on a person. Someone close to me has unfortunately spiraled from collecting, to cluttering, and now to hoarding. And at some point, the "organized mess" I remember from my youth turned into an overwhelming task that no one even knows how to start. And while I don't think everyone has tendency of having this happen to them, I just wished that something had been done earlier; organizing and de-cluttering along the way. And more over, I wished I had been there to help and slowly encourage progress. Too often, this happens to seniors after a loved one passes away, or they are unable to physically address their belongings, or they must downsize to a different location.

Upon completing my father's renovation project, I tried to return to the business and financial management world I had known, taking a position as a Business Manager at a national commercial furniture liquidation company. Using my precision for planning and process, I helped to streamline the company procedures and finances. Having some history in home improvement and styling always helped my understanding of the services and assets we dealt with, however something was always missing. Something about the things I had done and seen stayed with me. Something about being inside of the office, without the ability to touch and feel and put my thoughts into physical action bothered me. I spent some time researching and considering what my strengths and interests during the past had been. And what I realized is that I enjoyed the work at my father's the most. Working my brain and my body and seeing the tangible results of my labor! So in 2018 I spent the year studying the theories and ideas behind the work I had been doing instinctively, and become an HSR Certified Professional Home Stager and Redesigner. And after a total of 11 years in various offices, I took a leap of faith launching my own business that combines my professional experience with my creative and problem solving abilities.


Most importantly I want people to have a happy, healthy and safe living environment. Since one of my main inspirations has been seeing my own family's experiences sorting out finances, belongings and paperwork after a death, I hope to help other families and businesses avoid that in their future by getting an early start now. It's not just my name, these things really are my forte!