This year has brought about many different instances where small business owners had to deal with disasters and potential risk exposures. From the hurricanes that hit the gulf coast to the even more recent mass transit strike in New York City business owners must be responsive to the ever changing and unexpected occurrences in the daily operations.
This is why it is important for small business owners to plan for the unexpected by developing a contingency plan if a disaster or any other exposure arises. Although a small business owner may have more on their plate (dealing with day to day tasks) it is important to have a contingency plan to ensure the business can continue to operate after any unexpected risk exposure.
A typical business contingency plan would consist of addressing the following areas:
Technology Issues – How will data be handled, Is data backed up?
Financial Issues – Can income and expenses be tracked and completed? How will this be done?
Operations Issues - How will communication between employees, and locations be done
Any other business segments/infrastructure
By addressing this issues before risk exposure occurs can even make a small business more productive. When a small business “tests” various risk scenarios, they can often devise new product and service offerings and new ways to “do business” that can create additional revenue for the business.
Let me also take this time to wish everyone Happy Holidays and much success in the coming year!
Brian N. Stovall
Consultant – Accounting & Business Advisory
The Brico Group, Inc.
www.thebricogroup.com
bstovall@thebricogroup.com
Sunday, December 25, 2005
Sunday, December 11, 2005
OutSourcing Your Accounting Function
Small Businesses make up 50% of businesses and employ more than 98% of the workforce in America. Being that small businesses play such an important role in the American economy, typically what affects the economy will affect the small business owner. In the wake of large businesses financial scandals that are changing the way the government and regulatory agencies mandate new regulations, one would think what are the consequences if small businesses fall prey to similar scandals. The small business owner must take these issues into consideration for accurate financial reporting is not only a “Big Business” problem.
When a small business owner tries to tackle the financial problem alone, they are usually too caught up in the activities of bringing in new business to take any time out to “look over the books” or balance the checkbook. It is also difficult for the small business owner to stay current on all the new changes in the tax law that may affect their business. Despite all the government talks of tax simplification Congress has made more than 5000 changes in the federal tax law since 1986. Many of these changes resulted in new tax forms and instructions. The simple 1040 form with instructions is 107 pages. Small business owner must take into account these issues to ensure a solid future.
Typically a small business owner may attempt to alleviate the problem by purchasing an easy-to use software program to in a sense “do the work for them”. This attempt usually only puts the small business owner back into the same loop of trying to bring in new business at the same time managing day-to-day activities. The time training on the software and entering the data alone could be spent on revenue producing activities which is why often time a small business needs the assistance of a financial consultant to understand the in’s and out’s of financial record keeping.
Partnering with a Financial Consultant
When a small business brings aboard a financial consultant in conjunction with an accounting software package, all financial issues can be addressed. This will ensure that the smartest course of action is taken when making business decisions. At the same time the small business owner can focus their efforts on the revenue producing activities that will help the company grow. In particular entrusting financial activities to a consultant a small business can:
· Have more efficient tax planning- By preparing year round
· Improve cash flow- By knowing where the business stands at all times
· Have better insight as to where it is going- By utilizing accurate reports for decision-making.
Tax Planning
By partnering with a financial consultant, a small business will be able to uncover potential tax saving they can apply throughout the year instead of only at tax time. A financial consultant will have the time and access to various tax information sources that will provide the business owner with relevant information and concepts to apply to virtually any small business tax situation.
Cash Flow
Cash is the life-blood of any business especially a small business. Without cash the business will suffer and will possibly be forced to cease operations. By partnering with a financial consultant a small business’ cash flow position can be improved. The consultant can provide the small business owner with the numbers beyond just the bank balances so cash and/or financing needs can be addressed efficiently and effectively.
Management Controls
Many small businesses operate under a blindfold when it comes to planning for the future. By allowing a financial consultant to handle the tasks the small business owner will have a better grasp on where they are and where they plan to go. By focusing on journal entries, and various other financial reports the financial consultant can “forecast” potential business scenarios before they occur. This will empower the business owner will the necessary information they need to stay in line with their strategic vision.
The Financial Consultant- Your Business Partner
By investing in a financial consultant a small business can improve its tax planning, effectively manage their cash flow, and improve their management controls. It will also allow the small business owner to spend more time on revenue producing activities. Small business is a contact sport, it is important for the small business owner to make new contacts, maintain their present contacts, and keep in contact with their bottom line. By partnering with a financial consultant, small businesses can continue to be the backbone of the economy.
Brian N. Stovall
Consultant- Accounting and Business Advisory
The Brico Group, Inc.
www.thebricogroup.com
bstovall@thebricogroup.com
When a small business owner tries to tackle the financial problem alone, they are usually too caught up in the activities of bringing in new business to take any time out to “look over the books” or balance the checkbook. It is also difficult for the small business owner to stay current on all the new changes in the tax law that may affect their business. Despite all the government talks of tax simplification Congress has made more than 5000 changes in the federal tax law since 1986. Many of these changes resulted in new tax forms and instructions. The simple 1040 form with instructions is 107 pages. Small business owner must take into account these issues to ensure a solid future.
Typically a small business owner may attempt to alleviate the problem by purchasing an easy-to use software program to in a sense “do the work for them”. This attempt usually only puts the small business owner back into the same loop of trying to bring in new business at the same time managing day-to-day activities. The time training on the software and entering the data alone could be spent on revenue producing activities which is why often time a small business needs the assistance of a financial consultant to understand the in’s and out’s of financial record keeping.
Partnering with a Financial Consultant
When a small business brings aboard a financial consultant in conjunction with an accounting software package, all financial issues can be addressed. This will ensure that the smartest course of action is taken when making business decisions. At the same time the small business owner can focus their efforts on the revenue producing activities that will help the company grow. In particular entrusting financial activities to a consultant a small business can:
· Have more efficient tax planning- By preparing year round
· Improve cash flow- By knowing where the business stands at all times
· Have better insight as to where it is going- By utilizing accurate reports for decision-making.
Tax Planning
By partnering with a financial consultant, a small business will be able to uncover potential tax saving they can apply throughout the year instead of only at tax time. A financial consultant will have the time and access to various tax information sources that will provide the business owner with relevant information and concepts to apply to virtually any small business tax situation.
Cash Flow
Cash is the life-blood of any business especially a small business. Without cash the business will suffer and will possibly be forced to cease operations. By partnering with a financial consultant a small business’ cash flow position can be improved. The consultant can provide the small business owner with the numbers beyond just the bank balances so cash and/or financing needs can be addressed efficiently and effectively.
Management Controls
Many small businesses operate under a blindfold when it comes to planning for the future. By allowing a financial consultant to handle the tasks the small business owner will have a better grasp on where they are and where they plan to go. By focusing on journal entries, and various other financial reports the financial consultant can “forecast” potential business scenarios before they occur. This will empower the business owner will the necessary information they need to stay in line with their strategic vision.
The Financial Consultant- Your Business Partner
By investing in a financial consultant a small business can improve its tax planning, effectively manage their cash flow, and improve their management controls. It will also allow the small business owner to spend more time on revenue producing activities. Small business is a contact sport, it is important for the small business owner to make new contacts, maintain their present contacts, and keep in contact with their bottom line. By partnering with a financial consultant, small businesses can continue to be the backbone of the economy.
Brian N. Stovall
Consultant- Accounting and Business Advisory
The Brico Group, Inc.
www.thebricogroup.com
bstovall@thebricogroup.com
Sunday, December 04, 2005
Accounting Software ***NOW OPEN***
The accounting industry is taking more strides to provide more efficient software for small business owners. Although it has been around for quite some time, Open Source Accounting Software is gaining steam and additional customers from small business owners who are looking for a customizable solution to their accounting and reporting needs. Open source accounting software is software where the underlying code to develop it is shared with partners, Accountants/VAR’s (value added resellers), and end users to make everyone’s life a bit easier. Software developers have full access to the code and can create customized modules for small businesses to improve business operations. Accountants/VAR’s can improve their flexibility, by allowing them to import and export data between various other software systems, and management has the ability to be more efficient through better reporting and decision making.
There are some considerations that must be taken before implementing an open source accounting system. Upgrades to the software may be problematic if for some reason the underlying code of the system is altered somehow. This is why, as with any accounting system a small business utilizes that any technological upgrades and updates should be performed by your trusted technology consultant.
The market for open source accounting system has been seeing tremendous growth. Recently many Fortune 100 companies have requested open source accounting systems for their operations and some of the major players in the conventional accounting software market have developed tools to assist businesses. Sage Software’s MAS 90/500 accounting packages come with a tool call the “Customizer” that allows users to make changes to better fit their needs. Open source accounting software also make business operations move more efficiently with the addition of programming tools like XML interfaces, object oriented technology, and software integration modules that help businesses increase productivity.
Typically small businesses need a more customizable software program to operate their business and open source accounting software just may be the way. For more information on open source accounting software check out these sites:
AccountMate
OSAS – Open Systems Inc.
Netsuite
Until next time
Brian N. Stovall
Consultant - Accounting & Business Advisory
The Brico Group, Inc.
Small Business Consulting & Outsourcing
bstovall@thebricogroup.com
www.thebricogroup.com
There are some considerations that must be taken before implementing an open source accounting system. Upgrades to the software may be problematic if for some reason the underlying code of the system is altered somehow. This is why, as with any accounting system a small business utilizes that any technological upgrades and updates should be performed by your trusted technology consultant.
The market for open source accounting system has been seeing tremendous growth. Recently many Fortune 100 companies have requested open source accounting systems for their operations and some of the major players in the conventional accounting software market have developed tools to assist businesses. Sage Software’s MAS 90/500 accounting packages come with a tool call the “Customizer” that allows users to make changes to better fit their needs. Open source accounting software also make business operations move more efficiently with the addition of programming tools like XML interfaces, object oriented technology, and software integration modules that help businesses increase productivity.
Typically small businesses need a more customizable software program to operate their business and open source accounting software just may be the way. For more information on open source accounting software check out these sites:
AccountMate
OSAS – Open Systems Inc.
Netsuite
Until next time
Brian N. Stovall
Consultant - Accounting & Business Advisory
The Brico Group, Inc.
Small Business Consulting & Outsourcing
bstovall@thebricogroup.com
www.thebricogroup.com
Sunday, November 27, 2005
Small Business Tax Planning Part 2
Businesses may take these tax moves before the end of 2005 if they are on a calendar year end. On of the major tax actions a small business can make is to purchase new equipment for an immediate reduction in year 2005. This process of “expensing” is allowed up to $105,000 and is subject to a dollar for dollar reduction for purchases over $420,000. The equipment must however be put into use before the end of the year.
The income tax rules for depreciation include conventions that determine how much depreciation a small business can claim in the first year, thus it is important to time your purchase to reap the best tax benefit. The two types of conventions are “half-year” and “mid-quarter” conventions. The half year conventions applies to all property that you begin using during the year as if it was placed in service at the mid point of the year regardless of when it was actually placed in service. The mid –quarter convention is used if the cost of the equipment placed in service during the last three months is more than 40% of the total equipment placed in service for the year. The half year convention can no be used if the mid-quarter rule applies. As you can see it is important to know the cost of all the equipment placed in service for your business to ensure that you reap the benefits of the half-year convention. So if you are thinking about purchasing additional equipment before the end of 2005, speak to your tax advisor to map out a strategy for depreciation.
Other small business tax moves to make before the end of 2005 are:
Delay or accelerate income (billings) to accomplish you tax planning goals
S-Corp and partnerships’ owners can increase their basis by making a capital contribution or loaning the company money before the end of 2005. If a loss is expected these owners can deduct those losses up to their percentage basis in the business.
Sole Proprietors should setup retirement plans before the year end to lower their taxable income.
Paying dividends to stockholders (including yourself) will qualify for a reduced tax rate. These dividends reduce the risk of taxes on accumulate earning and may alleviate any payroll compliance issues relating to excessive executive pay.
One of the most important areas to uncover tax saving is through the creation of a budget. It is important for small business owners to speak with their accountant or tax advisor and setup a budget to ensure that the business goals are met and there is adequate cash flow to reach those goals.
Until next time
Brian N. Stovall
Consultant – Accounting and Business Advisory
The Brico Group, Inc.
Small Business Consulting and Outsourcing
bstovall@thebricogroup.com
www.thebricogroup.com
Sunday, November 20, 2005
Year End Tax Planning For You And Your Small Business Part I
As the year 2005 comes to a close, there is no better time than the present to begin to evaluate your tax situation. The fall is the best time of the year to assess your tax liability and make the necessary transactions to maximize your tax savings for the year. For a typical small business owner, your personal tax situation and company’s tax situation may overlap. In the coming days we will take a look at various year end tax saving ideas for yourself and your business. The first post will deal with individual tax saving strategies and the next with tax savings for your business.
Individual Tax Saving Strategies
Let’s first deal with retirement plan contributions and health saving accounts. This is a great time to maximize your retirement plan contributions to lower your taxable income and invest more for retirement. If you are a business owner it is also a good time to setup a retirement plan if you don’t already have one set up. If your business is a sole proprietor, consider setting up an IRA to lower your taxable income. Health savings accounts (HSA) are another way to lower your tax bill for 2005. Consider setting up a HSA because you can deduct contributions to the account and the account earns interest. These earnings are tax –deferred until withdrawn and any amounts used to pay medical expenses are withdrawn tax free. If amounts are withdrawn after the age of 64 and not used for medical bills, these will be treated like an IRA.
If you invest in mutual funds, it is a good idea to determine whether the mutual fund will pay a dividend that will occur early in the next year but considered paid in the year 2005. The year end dividend can make a difference in the amount of tax you pay for the year 2005. If the mutual fund has an automatic reinvestment of dividends option, those dividends reinvested will be taxable as a long term capital gain. These gains will qualify for tax relief as long as they are considered long term. Short term capital gains will not qualify as tax relief and will be considered as “ordinary dividends.” To get the best tax advantage, it will be good to wait till after the dividend to buy additional shares and to buy those shares in 2005. Also it is important to opt to take the dividend in cash instead of reinvesting it.
Speaking more on gains and losses, a great way to minimize your tax liability is to match your gains with your losses for the year. Try to avoid short-term gains which are usually taxed at up to 35% as opposed to long-term gains of 15%. If possible try to reduce short-term gains with short-term losses (up to $3000). Some ways to accomplish this are to sell an investment that you have accumulated a loss on in the year that you have a large capital gain, selling an investment that has generated a loss and repurchasing the same security or a similar security within 30 days, and if you have losses selling another investment as a gain and immediately repurchasing it.
Another way to minimize your tax bill is to either accelerate deductions and/or defer income. Great ways to accelerate deductions are the following:
· pay state estimated taxes in December as opposed to the January due date. The payment must be reasonable estimate of your tax liability.
· Paying your property taxes in 2005 instead of in installments due in 2006
· Bunching “threshold expenses” into one year. These expenses include itemized deductions, medical expenses and dues.
· Purchasing large items subject to state sales taxes that may give you a larger deduction that your state income tax deduction
Ways to defer income for 2005 are:
Selling investments that will produce a gain at the end of the year to defer payment of taxes to another year
Deferring receipt of a year-end bonus till next year to defer payment of taxes (other that the withheld portion). Only works for bonuses that are not contractually due in 2005
Waiting till next year to exercise stock option sells
If self employed, delay cash inflows until the end of December. Consider billing customers until the end of December.
These are just a few personal tax moves for you to make in 2005. In the next post we will uncover additional tax saving for small business owners and how those strategies may affect their personal tax situation. As with any suggestions on tax planning, check with your tax advisor for more specific suggestions and strategies for your own tax situation. Until next time, happy tax planning.
Brian N. Stovall
Consultant – Accounting and Business Advisory
The Brico Group, Inc.
Small Business Consulting and Outsourcing
bstovall@thebricogroup.com
www.thebricogroup.com
Individual Tax Saving Strategies
Let’s first deal with retirement plan contributions and health saving accounts. This is a great time to maximize your retirement plan contributions to lower your taxable income and invest more for retirement. If you are a business owner it is also a good time to setup a retirement plan if you don’t already have one set up. If your business is a sole proprietor, consider setting up an IRA to lower your taxable income. Health savings accounts (HSA) are another way to lower your tax bill for 2005. Consider setting up a HSA because you can deduct contributions to the account and the account earns interest. These earnings are tax –deferred until withdrawn and any amounts used to pay medical expenses are withdrawn tax free. If amounts are withdrawn after the age of 64 and not used for medical bills, these will be treated like an IRA.
If you invest in mutual funds, it is a good idea to determine whether the mutual fund will pay a dividend that will occur early in the next year but considered paid in the year 2005. The year end dividend can make a difference in the amount of tax you pay for the year 2005. If the mutual fund has an automatic reinvestment of dividends option, those dividends reinvested will be taxable as a long term capital gain. These gains will qualify for tax relief as long as they are considered long term. Short term capital gains will not qualify as tax relief and will be considered as “ordinary dividends.” To get the best tax advantage, it will be good to wait till after the dividend to buy additional shares and to buy those shares in 2005. Also it is important to opt to take the dividend in cash instead of reinvesting it.
Speaking more on gains and losses, a great way to minimize your tax liability is to match your gains with your losses for the year. Try to avoid short-term gains which are usually taxed at up to 35% as opposed to long-term gains of 15%. If possible try to reduce short-term gains with short-term losses (up to $3000). Some ways to accomplish this are to sell an investment that you have accumulated a loss on in the year that you have a large capital gain, selling an investment that has generated a loss and repurchasing the same security or a similar security within 30 days, and if you have losses selling another investment as a gain and immediately repurchasing it.
Another way to minimize your tax bill is to either accelerate deductions and/or defer income. Great ways to accelerate deductions are the following:
· pay state estimated taxes in December as opposed to the January due date. The payment must be reasonable estimate of your tax liability.
· Paying your property taxes in 2005 instead of in installments due in 2006
· Bunching “threshold expenses” into one year. These expenses include itemized deductions, medical expenses and dues.
· Purchasing large items subject to state sales taxes that may give you a larger deduction that your state income tax deduction
Ways to defer income for 2005 are:
Selling investments that will produce a gain at the end of the year to defer payment of taxes to another year
Deferring receipt of a year-end bonus till next year to defer payment of taxes (other that the withheld portion). Only works for bonuses that are not contractually due in 2005
Waiting till next year to exercise stock option sells
If self employed, delay cash inflows until the end of December. Consider billing customers until the end of December.
These are just a few personal tax moves for you to make in 2005. In the next post we will uncover additional tax saving for small business owners and how those strategies may affect their personal tax situation. As with any suggestions on tax planning, check with your tax advisor for more specific suggestions and strategies for your own tax situation. Until next time, happy tax planning.
Brian N. Stovall
Consultant – Accounting and Business Advisory
The Brico Group, Inc.
Small Business Consulting and Outsourcing
bstovall@thebricogroup.com
www.thebricogroup.com
Friday, November 18, 2005
Benefits of a Small Business Network
Have you ever considered having a network for your small business? You may respond to this question, “Sure I have several contacts of colleagues in my field who I can work with to build my client base.” Well as a small business owner that is all well, in good but for our purposes today I am talking about a small business computer network.
When people hear the term network, especially when they are dealing with computers, they tend to think of a conglomerate of computers linked together by means of a mega-server stored in the company server room – and that is a good example of a network. However, for a small business owner, having a computer network is just the same as a large, enterprise network – only smaller.
Here is the deal, the criteria for determining if your small business is “eligible” to setup a computer network is simple – if you have more than one computer in your office, you are indeed a candidate to create a small business network. A two pc network may seem small in comparison to a large enterprise network however; the functions it provides are similar and powerful.
For our purposes today, I will highlight two possible network architectures that you can use for your small business. The two the most popular small business networks are a peer-to peer and a traditional network. The main differentiation between the two is the use of a server (will explain what exactly a server is in a moment). In a peer-to-peer network what you have is two computers connected together by means of a crossover cable (a crossover cable is similar in appearance to a Cat5 network cable). The crossover cable enables users of the two connected computers to share files, documents, etc. However, security is an issue with the peer-to-peer network. The reason being is that with a peer-to-peer all the files are shared between the two computers. Therefore, anyone using PC number 1 can see all the files and documents on PC number 2. That is not a good situation if you have files on PC number 2 that you do not want the user of PC number 1 to see.
With that in mind, we discuss the traditional network. With a traditional network, files, documents and resources are shared by means of a server. A server is where all the files, documents, etc that are needed by everyone are stored and shared out. Personal files can also be stored on a server. Different access levels can be granted to each file, document or whatever for that matter which makes a traditional network a far more secure option.
In my next blog, we will go into depth about the two kinds of network and even provide some network planning and setup tips.
Til’ next time…Blog on!
Brian J. Winston
CTS Consultant
The Brico Group, Inc.
bwinston@thebricogroup.com
www.thebricogroup.com.
When people hear the term network, especially when they are dealing with computers, they tend to think of a conglomerate of computers linked together by means of a mega-server stored in the company server room – and that is a good example of a network. However, for a small business owner, having a computer network is just the same as a large, enterprise network – only smaller.
Here is the deal, the criteria for determining if your small business is “eligible” to setup a computer network is simple – if you have more than one computer in your office, you are indeed a candidate to create a small business network. A two pc network may seem small in comparison to a large enterprise network however; the functions it provides are similar and powerful.
For our purposes today, I will highlight two possible network architectures that you can use for your small business. The two the most popular small business networks are a peer-to peer and a traditional network. The main differentiation between the two is the use of a server (will explain what exactly a server is in a moment). In a peer-to-peer network what you have is two computers connected together by means of a crossover cable (a crossover cable is similar in appearance to a Cat5 network cable). The crossover cable enables users of the two connected computers to share files, documents, etc. However, security is an issue with the peer-to-peer network. The reason being is that with a peer-to-peer all the files are shared between the two computers. Therefore, anyone using PC number 1 can see all the files and documents on PC number 2. That is not a good situation if you have files on PC number 2 that you do not want the user of PC number 1 to see.
With that in mind, we discuss the traditional network. With a traditional network, files, documents and resources are shared by means of a server. A server is where all the files, documents, etc that are needed by everyone are stored and shared out. Personal files can also be stored on a server. Different access levels can be granted to each file, document or whatever for that matter which makes a traditional network a far more secure option.
In my next blog, we will go into depth about the two kinds of network and even provide some network planning and setup tips.
Til’ next time…Blog on!
Brian J. Winston
CTS Consultant
The Brico Group, Inc.
bwinston@thebricogroup.com
www.thebricogroup.com.
Monday, October 31, 2005
The Paperless IRS!!
Is The IRS Going Paperless?!?!
As I read thru the Fall 2005 SSA/IRS Reporter newsletter I can not help but noticed almost every article has something to do with the new initiatives both offices are taking to stay ahead of the technological curve. The main story on the front deals with the new Social Security Number Verification Service (SSVS) that allows employers to go online and match employees with their social security numbers before filing W-2 forms. This provides the company the added benefit of due diligence so that additional processing costs will not be incurred for mistakes.
As I read on, another story deals with the new 2006 filing regulations for large corporations (gross assets of 50 million and file 250 returns a year) making it a requirement to file returns electronically. This may be problematic for corporations initially (increased transition costs to conform to the new electronic system), but something corporations must deal with for the 2006 filing. Over time I am sure that corporations will realize better efficiency and scaled economies with the transfer to electronic filing. Another article states that the IRS is now accepting fax signatures on employment tax returns making it easier for businesses to file and submit returns.
The SSA follows suit with an article announcing that magnetic tape will not be allowed in tax year 2006 for W-2 filing. All W-2 forms must be filed online via their secure online suite. One of the more interesting articles I thought was the new EFTPS (Electronic Federal Tax Payment System) batch software that is in development. With the new software tax professionals can send up to 1000 enrollments and 5000 payments in one transmission making our lives a bit easier. I can’t wait for that.
One thing a small business owner can not wait for is to take a practical look at their business operations and see of there are ways to cut costs by going paperless. From paperless filing, and data storage to paperless engagements for service businesses many paperless options can be purchased at a small cost and implemented quickly. Paperless environments also make your daily operations move more efficiently and effectively. A small investment in technology may make a large impact on the bottom line.
Brian N. Stovall
Consultant - Accounting and Busiess Advisory
The Brico Group, Inc.
www.thebricogroup.com
As I read thru the Fall 2005 SSA/IRS Reporter newsletter I can not help but noticed almost every article has something to do with the new initiatives both offices are taking to stay ahead of the technological curve. The main story on the front deals with the new Social Security Number Verification Service (SSVS) that allows employers to go online and match employees with their social security numbers before filing W-2 forms. This provides the company the added benefit of due diligence so that additional processing costs will not be incurred for mistakes.
As I read on, another story deals with the new 2006 filing regulations for large corporations (gross assets of 50 million and file 250 returns a year) making it a requirement to file returns electronically. This may be problematic for corporations initially (increased transition costs to conform to the new electronic system), but something corporations must deal with for the 2006 filing. Over time I am sure that corporations will realize better efficiency and scaled economies with the transfer to electronic filing. Another article states that the IRS is now accepting fax signatures on employment tax returns making it easier for businesses to file and submit returns.
The SSA follows suit with an article announcing that magnetic tape will not be allowed in tax year 2006 for W-2 filing. All W-2 forms must be filed online via their secure online suite. One of the more interesting articles I thought was the new EFTPS (Electronic Federal Tax Payment System) batch software that is in development. With the new software tax professionals can send up to 1000 enrollments and 5000 payments in one transmission making our lives a bit easier. I can’t wait for that.
One thing a small business owner can not wait for is to take a practical look at their business operations and see of there are ways to cut costs by going paperless. From paperless filing, and data storage to paperless engagements for service businesses many paperless options can be purchased at a small cost and implemented quickly. Paperless environments also make your daily operations move more efficiently and effectively. A small investment in technology may make a large impact on the bottom line.
Brian N. Stovall
Consultant - Accounting and Busiess Advisory
The Brico Group, Inc.
www.thebricogroup.com
Tuesday, October 18, 2005
Intuit v. Microsoft The Fight Has Begun!!!
With the official launch of Microsoft’s Small Business Accounting 2006 on September 7th 2005 the stage has been set for an all out battle for the lucrative small business market for accounting software programs. On one side there is Intuit’s QuickBooks software lines that include Simple Start, Pro, Premier, and Enterprise Solutions 2006 and on the other the new Microsoft Small Business Accounting 2006 product. Both products offer small businesses, accountants and software developers a wide array of functions and features, but there are some limitations to each product. Among those are the ability to work with other software titles, and the functionality of the modules within each. In the October issue of the NSA Technology Advisor ( www.NSATechAdvisor.com ), there is a detailed analysis of each software offering and the strengths and limitations of both. One thing to keep in mind when comparing these two software offerings is to understand what each company is offering the end user, the key features of each software and how they relate to your business operations, if any third part software can be seamlessly integrated into the software and understanding the limitations of each software in regards to your business operations.
Small business owners will be happy to know that with the addition of MS SBA there is greater variety within the small business accounting market. Both QB 2006 and MS SBA 2006 are priced competitively and there are versions to fit any size business and budget. Both products have robust features, however each falls short in the inventory, and job costing area. Both products offer free trials (http://accountant.intuit.com and http://www.microsoft.com/accountants ).
The products differ in that MS SBA 2006 is written in the industry standard .NET language which provides Microsoft and edge for additional development inside the company (MS Office and other products) and outside the company (SDK Software Developers Kits). QuickBooks 2006 is written in a different code that has been around for quite some time which makes it difficult to develop additional products. Microsoft may have a long term advantage in this area if the strategy is to build loyalty thru the use of ancillary desktop applications that work with MS SBA.
I have been privileged to take a view of the new MS SBA 2006 product earlier this year and found it to be rather user friendly and easy to navigate. The screens are set up similar to other Microsoft offerings, thus it is familiar to new users. I did find it lacking in the reporting area, whereas QuickBooks offers more reports for the user. All in all it is a sound product that can only grow with the addition of more products that will seamlessly integrate into the .NET program. I would like to see a conversion built that will convert QuickBooks data to MS SBA 2006, for that would make it easier for new users to convert data.
Both companies must play close attention to the needs of accountants, small business owners and developers for each have a different need respectively. Whereas accountants want better accurate reporting and an audit trail, small business owners want something that is easy to use and learn. This is a difficult task for both companies and I look forward to see how each addresses the needs of both.
Brian N. Stovall
Consultant – Accounting Business Advisory
The Brico Group, Inc.
www.thebricogroup.com
Small business owners will be happy to know that with the addition of MS SBA there is greater variety within the small business accounting market. Both QB 2006 and MS SBA 2006 are priced competitively and there are versions to fit any size business and budget. Both products have robust features, however each falls short in the inventory, and job costing area. Both products offer free trials (http://accountant.intuit.com and http://www.microsoft.com/accountants ).
The products differ in that MS SBA 2006 is written in the industry standard .NET language which provides Microsoft and edge for additional development inside the company (MS Office and other products) and outside the company (SDK Software Developers Kits). QuickBooks 2006 is written in a different code that has been around for quite some time which makes it difficult to develop additional products. Microsoft may have a long term advantage in this area if the strategy is to build loyalty thru the use of ancillary desktop applications that work with MS SBA.
I have been privileged to take a view of the new MS SBA 2006 product earlier this year and found it to be rather user friendly and easy to navigate. The screens are set up similar to other Microsoft offerings, thus it is familiar to new users. I did find it lacking in the reporting area, whereas QuickBooks offers more reports for the user. All in all it is a sound product that can only grow with the addition of more products that will seamlessly integrate into the .NET program. I would like to see a conversion built that will convert QuickBooks data to MS SBA 2006, for that would make it easier for new users to convert data.
Both companies must play close attention to the needs of accountants, small business owners and developers for each have a different need respectively. Whereas accountants want better accurate reporting and an audit trail, small business owners want something that is easy to use and learn. This is a difficult task for both companies and I look forward to see how each addresses the needs of both.
Brian N. Stovall
Consultant – Accounting Business Advisory
The Brico Group, Inc.
www.thebricogroup.com
Wednesday, August 10, 2005
Is Free really secure?
Spyware...viruses. Two words that make pc users cringe often. Yep, getting a spyware object or a virus on your pc can often times be as painful as getting a tooth removed. The whole process of getting one's system back to norm can be a gigantic headache. I do PC Repair and Maintainence as a service for our company (The Brico Group, Inc. visit us at www.thebricogroup.com) and I tell you well over 75% of my service calls come from folks whose pc has been infected. Here's a quick note - if you have a dsl or cable modem connection get a router if you do not already have one. It is a true firewall and will prevent alot of the spyware/virus headaches.
Anyway, I digress back to the main subject at hand. So the fact is that spyware objects and viruses are not going away anytime soon. People pay alot of money to subscribe to virus protection/spyware protection services or software. Take note however - there are quality spyware/virus protection programs available FOR FREE.
One of the main spyware programs I use is MS Anti-Spyware from Microsoft. It's a free download available on their site (under the download area). It takes roughly 5 minutes to download and install. Microsoft updates the software periodically and it automatically updates the spyware definitions whenever there are updates available and you are connected to the internet. That is a key point. New spyware programs are often created so fast that it is imperative to have an auto update feature that will keep the spyware defense programs current. Only complaint you may have about MS AntiSpyware is that the Alert Notification feature often comes up at inopportune times and may startle some of you. The good thing is that the Alert Notification popup clearly defines what program is trying to gain access to your system and allows you to either allow or block access from that program. This could be aggravating to some but my motto is better safe than sorry.
Now for virus protection - I use AVG Free from Grisoft. The free download is available at grisoft.com. Look for the Free Edition (you have to look on the main page closely or you will not see it). They offer other versions but the free one works well. It works the same as the MS Anit-Spyware in that it has an auto update feature. This is especially imperative for anti-virus programs since virues have potential to do more damage to your system. It also allows you to scheudle scans and updates. I usually let my scans take place weekly at 2am...a time I am not usually on my pc. Since I have a cable modem, the scan runs with no problem and does not need to be monitored. For those of you who have dial-up connection, if you schedule a scan/updates and the pc cannot access the server to check for updates, it will do so as soon as you connect to the internet so do not be alarmed.
Well folks that's about all from Brico Daily centeral today. Give those downloads a try if you have not already. Let us know what you think, what you like, what you dislike, etc by posting to the Blog. Bear in mind - your system will be in good hands with these to protection programs.
Anyway, I digress back to the main subject at hand. So the fact is that spyware objects and viruses are not going away anytime soon. People pay alot of money to subscribe to virus protection/spyware protection services or software. Take note however - there are quality spyware/virus protection programs available FOR FREE.
One of the main spyware programs I use is MS Anti-Spyware from Microsoft. It's a free download available on their site (under the download area). It takes roughly 5 minutes to download and install. Microsoft updates the software periodically and it automatically updates the spyware definitions whenever there are updates available and you are connected to the internet. That is a key point. New spyware programs are often created so fast that it is imperative to have an auto update feature that will keep the spyware defense programs current. Only complaint you may have about MS AntiSpyware is that the Alert Notification feature often comes up at inopportune times and may startle some of you. The good thing is that the Alert Notification popup clearly defines what program is trying to gain access to your system and allows you to either allow or block access from that program. This could be aggravating to some but my motto is better safe than sorry.
Now for virus protection - I use AVG Free from Grisoft. The free download is available at grisoft.com. Look for the Free Edition (you have to look on the main page closely or you will not see it). They offer other versions but the free one works well. It works the same as the MS Anit-Spyware in that it has an auto update feature. This is especially imperative for anti-virus programs since virues have potential to do more damage to your system. It also allows you to scheudle scans and updates. I usually let my scans take place weekly at 2am...a time I am not usually on my pc. Since I have a cable modem, the scan runs with no problem and does not need to be monitored. For those of you who have dial-up connection, if you schedule a scan/updates and the pc cannot access the server to check for updates, it will do so as soon as you connect to the internet so do not be alarmed.
Well folks that's about all from Brico Daily centeral today. Give those downloads a try if you have not already. Let us know what you think, what you like, what you dislike, etc by posting to the Blog. Bear in mind - your system will be in good hands with these to protection programs.
Tuesday, August 02, 2005
Back from an extended...
Hey folks B Winston back here in TBG Blogland. It has been AWHILE since I lasted posted - no excuses just been busy but I am back and here to stay.
Alot of developments in the tech world have transpired since my last post. One of the things that has truly caught my eye is the extremely affordable prices of small business/home office computers and laptops. I just saw a commericial for a Gateway laptop for $599. Fry's (a local electronics superstore) had a desktop pc this past weekend for $189. That's right folks prices for computer equipment are on the way down. That leads me to my next train of thought - you just don't know how many times I get emails from folks asking what kind of pc should they get, or they will find a pc they may like on the internet, print out the specs, and the plop the piece of paper in front of me awaiting a "ye" or "ne" response. The interesting thing is that most of the computers being sold today are well equipped for normal, everyday, business scenairio (those of you into gaming will have to pay a little more to get the particular type of pc and components you are looking for). So today I figured I would list out some key specs any potential pc you are planning to buy MUST have:
1. At least 256MB of RAM - 512 is ideal however.
2. 1.4 Mhz processor (minimum)
3. 60GB Hard Drive (if you plan on downloading alot of pictures, music, etc. a larger hard drive is essential).
4. CD-RW/DVD combo
5. Wireless capabilities (processor that supports wireless) *laptops only
6. 3 USB ports minimum (most printers, cameras, external hard drives, etc. all use a USB connection to connect to your pc) - 4 USB ports would be ideal.
That's really it folks. Now keep in mind you will see some computers or laptops with extra bells and whistles. But are they really neccesary? For example, say you see a laptop online for $599. But then you look and see that the laptop does not have built-in wireless. However, for an extra $200 dollars you can get a model with built-in wireless. Is that all necessary? Not in my book folks. All the major stores selling USB wireless adapters for under $50!! Believe me when I say they work like a charm - if you don't loose them (some folks in my office do that on a regular basis). So the point is bells and whistles cost more than they usually are - extra components can be added and end up being a WHOLE lot cheaper than having them installed when your machine is built.
Well I have kept you long enough folks. Go out there and capitlialize on all the great pc and laptop deals that are out there. Funny thing is that gas prices keep rising but pc equipment keeps going down...I hope it stays that way...at least the pc equipment anyway.
Till next time.
Brian J. Winston
Consultants - CTS
The Brico Group, Inc.
www.thebricogroup.com
www.thebricogroup.intranets.com
bwinston@thebricogroup.com
Alot of developments in the tech world have transpired since my last post. One of the things that has truly caught my eye is the extremely affordable prices of small business/home office computers and laptops. I just saw a commericial for a Gateway laptop for $599. Fry's (a local electronics superstore) had a desktop pc this past weekend for $189. That's right folks prices for computer equipment are on the way down. That leads me to my next train of thought - you just don't know how many times I get emails from folks asking what kind of pc should they get, or they will find a pc they may like on the internet, print out the specs, and the plop the piece of paper in front of me awaiting a "ye" or "ne" response. The interesting thing is that most of the computers being sold today are well equipped for normal, everyday, business scenairio (those of you into gaming will have to pay a little more to get the particular type of pc and components you are looking for). So today I figured I would list out some key specs any potential pc you are planning to buy MUST have:
1. At least 256MB of RAM - 512 is ideal however.
2. 1.4 Mhz processor (minimum)
3. 60GB Hard Drive (if you plan on downloading alot of pictures, music, etc. a larger hard drive is essential).
4. CD-RW/DVD combo
5. Wireless capabilities (processor that supports wireless) *laptops only
6. 3 USB ports minimum (most printers, cameras, external hard drives, etc. all use a USB connection to connect to your pc) - 4 USB ports would be ideal.
That's really it folks. Now keep in mind you will see some computers or laptops with extra bells and whistles. But are they really neccesary? For example, say you see a laptop online for $599. But then you look and see that the laptop does not have built-in wireless. However, for an extra $200 dollars you can get a model with built-in wireless. Is that all necessary? Not in my book folks. All the major stores selling USB wireless adapters for under $50!! Believe me when I say they work like a charm - if you don't loose them (some folks in my office do that on a regular basis). So the point is bells and whistles cost more than they usually are - extra components can be added and end up being a WHOLE lot cheaper than having them installed when your machine is built.
Well I have kept you long enough folks. Go out there and capitlialize on all the great pc and laptop deals that are out there. Funny thing is that gas prices keep rising but pc equipment keeps going down...I hope it stays that way...at least the pc equipment anyway.
Till next time.
Brian J. Winston
Consultants - CTS
The Brico Group, Inc.
www.thebricogroup.com
www.thebricogroup.intranets.com
bwinston@thebricogroup.com
Tuesday, June 28, 2005
Technology and Your Small Business
Technology is here to stay, and now you don’t have to have a large budget to use it in your small business. A small business can benefit too from the use of technology just like large corporations. This use of technology can create a more efficient and profitable operation for the small business owner. By utilizing a paperless filing system, or setting up a customer centric website, a small business can improve its operations in no time. Information can be accessed immediately in a paperless office and communication with customers can be greatly improved when answers to questions can be found on ones website.
Online services for clients and paperless file systems are only the tip of the iceberg for a small business to use technology. In the coming weeks we we’ll take a journey into the technology realm and to uncover small business technology strategies that can have your business operating 24/7. One thing to keep in mind when developing your small businesses’ technology strategy is to think of you businesses entire processes instead of the individual tasks and develop strategies that make the entire process more efficient and convenient to your customers.
Brian N. StovallConsultant – ABA
The Brico Group, Inc.
www.thebricogroup.com
www.thebricogroup.intranets.com
bstovall@thebricogroup.com
Online services for clients and paperless file systems are only the tip of the iceberg for a small business to use technology. In the coming weeks we we’ll take a journey into the technology realm and to uncover small business technology strategies that can have your business operating 24/7. One thing to keep in mind when developing your small businesses’ technology strategy is to think of you businesses entire processes instead of the individual tasks and develop strategies that make the entire process more efficient and convenient to your customers.
Brian N. StovallConsultant – ABA
The Brico Group, Inc.
www.thebricogroup.com
www.thebricogroup.intranets.com
bstovall@thebricogroup.com
Friday, June 24, 2005
GaGa over Google...Part II
I am on the road in a small country town in South Georgia named Vidailia...the sweet onion city of the south (down here for my uncle's wedding). When we checked into the hotel I soon discovered that they had free wi-fi access (yes I was truly excited by the discovery). After we got checked in and settled and attended the wedding rehersal I rushed in to get on the laptop.
So I powered up the laptop and rushed to click on the Firefox icon that would take me to the net I was so eagerly awaiting. As Mozilla launched I found it interesting to observe that the default home page within the hotel's system was...ta da...Google.
That's right the big G had struck again. Google is the mackdaddy of search engines folks. Reports on Wall Street last week had the stock selling for $299 per share! Compare that to similar internet sites such as E-bay (roughly $25 per share) and you can immediately see the value of what Google has to offer - the ability for your business to have maximum exposure for those who look for websites within your business category.
As a small business owner attempting to establish a powerful web presence on the internet you have to face the fact that you can't do it all by yourself. Google is a great, great tool to help. From general search engine submissions, to Google AdSense, to Froogle, to pay per click, to the upcoming online payment solutions Google has it all.
Tomorrow we'll begin to go in depth and explain how Google AdSense can add money to your smal business bank account with little to no work on your part.
Blog on.
Brian J. Winston
Consultant - CTS
The Brico Group, Inc.
www.thebricogroup.com
bwinston@thebricogroup.com
So I powered up the laptop and rushed to click on the Firefox icon that would take me to the net I was so eagerly awaiting. As Mozilla launched I found it interesting to observe that the default home page within the hotel's system was...ta da...Google.
That's right the big G had struck again. Google is the mackdaddy of search engines folks. Reports on Wall Street last week had the stock selling for $299 per share! Compare that to similar internet sites such as E-bay (roughly $25 per share) and you can immediately see the value of what Google has to offer - the ability for your business to have maximum exposure for those who look for websites within your business category.
As a small business owner attempting to establish a powerful web presence on the internet you have to face the fact that you can't do it all by yourself. Google is a great, great tool to help. From general search engine submissions, to Google AdSense, to Froogle, to pay per click, to the upcoming online payment solutions Google has it all.
Tomorrow we'll begin to go in depth and explain how Google AdSense can add money to your smal business bank account with little to no work on your part.
Blog on.
Brian J. Winston
Consultant - CTS
The Brico Group, Inc.
www.thebricogroup.com
bwinston@thebricogroup.com
Monday, June 20, 2005
GaGa over Google...
What's the first webpage that loads when you login to your internet service provider? Well if you are one of the 7 out of 10 people surveyed then most likely it is Google. That's right the word that was once and odd term on the internet has now become a MONSTER on the net!
Google is widely considered the leading search engine on the internet. However, as you may know, Google has an enormous amount of additional offerings for the causual internet surfer to the mega corporations...and everyone in between.
Here's where I tie it all in. As a small business owner, you need every competitive edge you can get your hands on...especially when it comes to the internet. My friends let me tell you Google can be a small business owners dream when it comes to the internet.
How you may ask? Well over the next few days, I'll go in depth on Google and share with you all the ways YOUR business can benefit with the help of Google...and TBG showing you the way :)
Till tomorrow fellow Bloggers.
Brian J. Winston
Consultant - The Brico Group, Inc.
www.thebricogroup.com
bwinston@thebricogroup.com
Google is widely considered the leading search engine on the internet. However, as you may know, Google has an enormous amount of additional offerings for the causual internet surfer to the mega corporations...and everyone in between.
Here's where I tie it all in. As a small business owner, you need every competitive edge you can get your hands on...especially when it comes to the internet. My friends let me tell you Google can be a small business owners dream when it comes to the internet.
How you may ask? Well over the next few days, I'll go in depth on Google and share with you all the ways YOUR business can benefit with the help of Google...and TBG showing you the way :)
Till tomorrow fellow Bloggers.
Brian J. Winston
Consultant - The Brico Group, Inc.
www.thebricogroup.com
bwinston@thebricogroup.com
Thursday, June 16, 2005
The Blogging Has Begun...
Blogs. Yet another internet "fascination" that has taken over the world wide web rapidly. Things come and go quickly on the internet, however Blogs are here to stay...for awhile at least (nothing is ever permanent just improved on).
We at The Brico Group, Inc. welcome you to our Blog. This is a place where you can find out about what's new in the world of computer technology and finance - primairily how they affect small business owners. We'll report on new products, new concepts, tips and simple "how-to's". We'll also add a little commentary on what's going on in these industries - but more importantly we invite you, our Blog reader, to respond to our comments and add your own insight. The more information exchanged the better.
Come back and visit us everyday and The Brico Daily will always have something benefical for you.
Brian J. Winston
Consultant
The Brico Group - Computer Technology Services
bwinston@thebricogroup.com
www.thebricogroup.com
We at The Brico Group, Inc. welcome you to our Blog. This is a place where you can find out about what's new in the world of computer technology and finance - primairily how they affect small business owners. We'll report on new products, new concepts, tips and simple "how-to's". We'll also add a little commentary on what's going on in these industries - but more importantly we invite you, our Blog reader, to respond to our comments and add your own insight. The more information exchanged the better.
Come back and visit us everyday and The Brico Daily will always have something benefical for you.
Brian J. Winston
Consultant
The Brico Group - Computer Technology Services
bwinston@thebricogroup.com
www.thebricogroup.com
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