Tax Time May Mean Big Savings For Small Businesses

By HP – www.hp.com

For many small businesses, tax time may be the right time to invest in new computer systems and related equipment. That’s because there are a number of tax deductions available to companies that replace old technology for newer systems.

Couple that with what many say are lower prices on new IT equipment, and many businesses could end up paying less taxes while increasing in productivity. The following tips may help your company make tax time compute. They come from the experts

at HP:

•Replace older technology.

Congress has increased the amount businesses can write off on new equipment purchases to $102,000 for 2004 taxes. The increase, known as the 179 deduction, has been extended

through 2007. Since PC prices have dropped more than 40 percent since 2000, many companies have invested in new PCs and servers and will continue to do so in 2005. In addition, it is a perfect time to invest in a variety of products that improve data and system security from hackers, viruses and worms.

•Consider bonus depreciation.

A 50 percent depreciation bonus is available during the first year of service on certain capital assets acquired before January 1, 2005. The bonus depreciation applies to most equipment, machinery, and office furniture.

• Check the R&D credit.

Companies may be able to take a 20 percent credit for the cost of technology research intended to be useful in developing new or improved business components.

•Depreciate computers and electronic equipment.

Computers or other equipment used for personal purposes—such as handhelds, scanners and copiers—may be eligible for a limited depreciation deduction if they are also used for business. For depreciation tips, see IRS Publication 946 or your tax advisor.

•Take advantage of PCs.

Use your PC for bookkeeping and other small business processes that can help increase productivity and streamline operations—but be sure to track your usage. Depreciation

can be limited if use of the equipment for business purposes is below 50 percent.

•Look into leasing.

Leasing technology equipment lets businesses expense—rather than purchase outright—IT equipment. Small businesses may be able to triple what their budget would ordinarily be able to support.

•Take security precautions.

Avoid being the latest victim of identity theft and make sure all your personal and financial information is well protected with the latest technology. Take time to assess your company’s technology security priorities. Then hire a reputable vendor to help you review the wide security choices available on the market to figure out which product/solution makes the most sense for your business.

•Recycle your technology.

Many states offer tax credits for individuals or corporations that recycle equipment. Also, most major computer vendors let customers return any computer hardware through take-back and recycling programs. For instance, in addition to its standard recycling program, HP offers an acquire-toretire asset management service. It can help small businesses manage their IT investments in a costefficient manner—and dispose of equipment when it’s time to move to newer technology.

•Donate PCs to charity.

Many charities accept old PCs as part of their exempt functions. Companies can use such programs to trim bloated inventory, obtain tax deductions and give back to the community.

•Keep it in the family.

The salary paid to a family member is a business deduction. Family members can assist with bookkeeping, administration, marketing and other aspects of your business. Your teenager may be the perfect IT specialist for your company.

Article provided by HP’s Small and Mid-Sized Business Unit

www.hp.com

Can you establish good business credit if you have bad personal credit? The answer is yes…but with a few caveats.

Business credit reports and personal credit reports are generally completely separate databases for legal reasons. However, there are some exceptions in terms of how independent that information may be:

– If you are operating as a sole proprietor or Limited Liability Company, it is difficult to separate your personal and business credit. A corporation is a much better structure to build a completely independent business credit report.

– Experian sells a credit score that is a combination of the business owner’s personal credit history and the businesses’ credit history.

In the early years of a business, the owner will almost certainly be required to personally guarantee loans. However, as you establish a strong business credit rating for your enterprise, you’ll have more leverage to negotiate for a loan without your personal guarantee.

A warning: some people try to use business credit file to repeat bad credit habits.

“I’ve seen people who ruined their own credit go out and start a business, enlist the help of people with good personal credit to be executives in the company, and get major credit cards. They didn’t have a real product or service, and the objective was to just get credit. They would inevitably default on the corporate credit lines,” says Erik Salmon, Director of Business Credit Services for Innovative Business Services (IBS) and an experienced business credit coach. If that’s your intention in establishing a business credit rating, you’re better off taking some personal finance courses to learn how to manage your money.

If, however, you legitimately want to make a go of a business, have a solid plan, and are willing to do what has to be done to get it off the ground, then you should let a bad personal credit rating stop you. Building or rebuilding good credit – whether it’s personal credit or business credit – is a process. Be patient as you work on both your personal and business credit. The results will be worth it. For more information, visit www.businesscreditsuccess.com.

About the author

Gerri Detweiler is considered one of the country’s top credit experts. She has been interviewed for thousands of radio, television and print newstories including USA Today, The Wall Street Journal, The New York Times, Dateline NBC and many others. She has testified before Congress several times and worked on reform of the national credit reporting laws.

Corporate Security for your Home Business
by: Nick Smith

The words Corporate Security may conjure up images of a group of techies working in a wire-filled basement room of Microsoft or HP, combating hackers and terrorists online using words like algorithm and encryption. If you own your own business, do not allow yourself to think that security is only for big corporations. Every company, big or small, technological or traditional, has two major security concerns: protecting information, and protecting hardware.

Corporate Security: Information

Information is the commodity that makes companies unique. That information could be a process your company does better than others; or it could be how to make the unique product you sell; or it could be a collection of information that you have that others want access to. In any case, protecting the information that makes your company viable could mean financial life or death for your venture. There are three simple corporate security solutions you can implement to decrease the likelihood that your information will be leaked or lost.

Make back ups often. If you are like 90% of computer users out there who use Windows, pressing [ctrl] + S is a habit well worth forming. Besides information, time is one of your most valuable resources, so you can’t afford to lose hours of work every time the system crashes. Save your work as often as you stop typing. Making additional copies of master files in other places beside your hard drive will mean you won’t lose everything if your hard drive becomes corrupted. Keep these discs in a safe place where you can easily access them if you need to.

Keep secret passwords secret. This may seem like a no-brainer, but too often we think of passwords as annoyances slowing us down. Systems are password-protected to ensure that only those persons who should be allowed access are granted access. If you are working out of a home office and have little face-to-face interaction with clients or customers, you may be tempted to leave your system unlocked or pin a list of your user names and passwords near the computer. Remember that children are both curious and smart, and in only a few clicks of the mouse they can accidentally erase important files. Do yourself the favor of memorizing your passwords and changing them on occasion.

Maintain an up-to-date computer system. Computers that run slower also have the terrible tendency of getting overloaded and shutting down. The internet is one of the biggest culprits of bogging down your processing speed, but running several programs at the same time will also do it. Keeping your processor and memory up-to-date will help ensure that you are able to perform all the tasks that are required of you without having to spend a lot of time waiting for your computer to catch up.

Corporate Security: Hardware

Chances are good that IBM’s annual technology budget is quite a bit larger than your home business’s budget. Between putting food on the table and covering the operating costs of your business, purchasing new equipment might seem like a luxury you’ll never have. Protecting your computer system from viruses, spy ware, and malicious software is one of the most cost-effective ways to ensure your computer will last as long as you need it to.

Know what is on your computer. Viruses can come through email, discs, or the internet, and are typically well-hidden on your hard drive. Perform systematic checks of the temporary internet files, cookies folder, and the rest of your hard drive to ensure that you have not accidentally picked up a virus. Software can be purchased that filters spam and helps you manage the internet files and cookies that are downloaded automatically on your computer. A proactive approach in combating viruses and spy ware is usually the most effective way to make sure your hardware stays protected.

Though corporate security solutions may seem like a luxury your home business can not afford, protecting information and hardware are priorities that all companies should have. Following these simple, inexpensive solutions to common security concerns your company may have will go a long way in helping you succeed.

About The Author

Nick Smith is a client account specialist with http://www.10xMarketing.com – More Visitors. More Buyers. More Revenue. For more information about cost-effective corporate security solutions, visit www.contentwatch.com

nick10x@yahoo.com

10 Ways Entrepreneurs Shoot Themselves In The Foot

Entrepreneurs and their businesses have a tendency to ambush themselves when they aren’t looking. This affects how much revenue they can generate, how fast their business rises, and even if they survive after the first few years. If you feel there is a possibility you are getting in your way to success, review these elements to see if any of these items might apply.

1. Imagine investing time and money into a product or services, only to find that it isn’t selling. Or at least it doesn’t have the results that you expected. Now, I’m talking realistic here, and not some grandiose vision. It?s hard to give up something when you have invested your resources into something, more importantly, you have spout off to the world (okay, friends and family) that you were doing it.

Gluing yourself to an idea, product, or service that isn’t making any money or enough money to support the business isn’t smart. Ego and pride don’t make money. Getting hitched to any one idea, or even two, that isn’t profitable isn’t smart. Every product climbs and falls — even McDonalds drops a product when it doesn’t test strong. Ideas are the currency of entrepreneurs, make money with them or let them go.

2. Be proud of being an entrepreneur. DFor some reason, the title entrepreneur seems to have caught a disease, but that shouldn’t be the case. Be proud of being an entrepreneur. when someone asks you, don?t mumble, and don?t call it by another name, as if being an entrepreneur was somehow unprofessional. The same applies to the title of independent professional — which is another name for entrepreneur. Stand tall and proud.

When I ask people at networking events if they’re an entrepreneur, they often respond with strange body language. Some shift their stance uncomfortably, sometimes their hand goes over their mouth and they let out a barely audible, “yes,” and sometimes they even correct me, using some other title.

3. No bologna (or b.s.). Entrepreneurs can be naturally excited and optimistic about what they are doing. Don’t let the excitement sound like hype. Because of this people don’t trust you. Don’t just tell the pros, add the cons. Let people know, who is the best person for this service ? not everyone, or what circumstances are best for the product. People aren’t stupid but if they have to figure the cons of the product or service, you will most likely lose the sale.

4. Being in denial of your cash position. Not balancing the checkbook, not knowing what your accounts receivables, payables, or what the break even cost is for a product or service, isn’t smart business. If you don’t know what it is, get a book on the topic or talk to an accountant. Denial creates fear, and fear creates denial. It?s a vicious circle that creates stress and ulcers. Short term projects turn around short term dollars. Long term projects never turn around short term dollars. Be realistic with all your resources.

5. Accepting weak any bodies. Whether its weak staff, weak clients, weak strategic alliances, or anyone else in your support realm. If you are attracting weak people, you are giving weak signals. Change your signals and you will change what you attract. To attract strong people, you need strong signals.

6. Confusing possibility with reality. One of the main characteristics of an entrepreneur, and this could be one of the reasons people may not like using the name, is their gift to see everything in possibilities, yet spend money in the world of reality. Money is always reality.

7. Selling or trying too hard to explain what you sell. If you find yourself pushing what you’re product or service does, it is time to change your “success formula.” Common causes are: (1) You are trying to sell to someone who isn’t your target, or (2) If you have the right target and you don’t know what you are selling. You can only handle this in two ways, know what the customers are buying, or know the benefits of what you are selling. Benefits in the terms customers need to hear and understand, not what you choose to say.

8. Lack of any or adequate support structures. If it takes a village to raise a child, what do you think it takes to raise a business. Surely, not a lone ranger. Work with others to help handle your many business and personal needs. Entrepreneurs need support, even if it?s only a feeling. Arrange to have a support structure for every part of your business. Keep in mind tip number five above for this as well.

9. Over or under delegating. It is so hard for entrepreneurs to begin to delegate. Yet once they do they seem to swing the pendulum completely to the opposite side and over delegate. Over delegating is “dumping” on people. Even paid people, don’t like being dumped on. Feeling in control is a need of most people, entrepreneurs aren’t any different. They look at it as a money or trust issue, when in actuality it?s usually a control issue. Delegate appropriately and with people that think you can trust. Let the trust build over time.

10. Stop giving up so easily. Successful entrepreneurs don’t see failure. They see learning lessons. They pick themselves up, dust themselves off, change and adjust, and keep moving. Being an entrepreneur, during the early years of a business — that is under five years for most professionals, takes more work than being an employee. Even if you are a graduate with an MBA in business. Don’t include your learning curve time in with the rest of your time. Everyone has a learning curve of some kind.

About the Author

Catherine Franz, a Professional Marketing & Writing Coach, specializes in product development, Internet writing and marketing, nonfiction, training. Newsletters and articles available at: www.abundancecenter.com blog: http://abundance.blogs.com