By Mark Johnson
The Accountable Plan is one of our most successful strategies and gives up to $10K in tax savings per year.
An Accountable Plan allows employees and in your case, owner-employees to be reimbursed for business expenses paid out of pocket.
The expenses become deductions to the business and the employee or employee-owner can be reimbursed creating non-taxable cash flow to them.
In order for the plan to be a “Qualified Accountable Plan” it must have the following connection points:
· Business Connection
· Substantiation (Expense Reports - with receipts)
· No Excess Payments
· Timeliness (30 - Day Rule)
If not disbursed under an accountable plan, the payments could be considered additional wages by the IRS. For this reason, you need an accountant familiar with the accountable plan for the initial setup.
Examples of expenses that qualify are mileage, auto, home office, travel, meals & entertainment expenses.
Learn more about this and other LEGAL tax saving strategies by contacting us at 1954-324-0803 or booking an appointment at https://calendly.com/markjohnsontaxplanner/45min.
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By Mark Johnson
Do you ever worry that if the credit card you’re using to make business purchases isn’t in your business name that you won’t be allowed to take the deductions?
The good news is, that’s not the case—even if you have a separate entity!
This doesn’t mean you should mix personal and business expenses.
When you take a personal credit card and use it entirely for business expenses, you are essentially contributing this debt to your business.
You can use the card the same as if it was in the company’s name and deduct every business expense you purchase on it.
This can be a great strategy, just like with auto loans, when the company is new because it’s harder for new companies to get lines of credit without an established credit history.
So if you’ve got a personal credit card available for business expenses, feel free to use that card and benefit from all of the rewards!
To learn more please call 1954-324-0803 or book an appointment at https://calendly.com/markjohnsontaxplanner/45min
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Google search rolled out an update that now shows a website's favicon next to the search results on desktop, which started on mobile in May.
Interesting read: https://www.androidcentral.com/google-search-results-desktop-now-include-favicons
What you need to know
Google is making some changes to the way search results are shown on the desktop. Starting this week, search results will be displayed alongside icons for the websites they link to. The redesign was propagated to mobile devices last year.
By Elite Worldwide Inc.
If you’re running (or have run) a world class auto repair shop, and would like to spend as little as 4-5 hours per week giving back to the industry that has given you so much, while earning a great income at the same time, then this is the perfect opportunity. Elite is looking for business development coaches who would like to share their knowledge so that other shop owners can have the opportunity to walk in their shoes and become more successful.
All Elite coaches must meet the following qualifications:
At least 5 years experience as a successful owner operator
A track record of verifiable business success that includes a 5-star reputation in the community
A strong commitment to ethics
A positive attitude
Great communication skills
A great personality A + references
A willingness to submit to a background investigation
A willingness to embrace and live by our mission statement
If you qualify, we would love to work with you to change the lives of shop owners facing challenges that you’ve already overcome. Please send an email that communicates your specific accomplishments as a shop owner and any statistics on the shop(s) that you’ve run to [email protected], or visit https://www.eliteworldwide.com/careers-that-change-lives.ht… to learn more.
By Joe Marconi
A few years ago, some friends and I were having dinner at a local restaurant. There were six of us enjoying the food and having a great time. A few minutes after our waiter served us our coffee and dessert, the owner of the restaurant walked over to us, introduced himself and said, “I have people waiting for this table; how much longer do you think you’ll be?” Shocked by his comment, I hesitated for a second, looked up at him and said, “No worries, we’re done.” With just a few simple words, the owner of the restaurant wiped out the pleasant experience we were all having.
As we were finishing up, we couldn’t help noticing the stares from our waiter and the owner. Their eyes were laser-focused on us. They made it obvious that they wanted our table. We didn’t say anything to our waiter, or the owner. But we told each other, “We’ll think twice about coming back to this restaurant.” None of us ever did go back to that restaurant. And I heard similar complaints from other friends about that restaurant. About a year later, that restaurant closed its doors for the last time.
As a business owner, I fully understand what each table means in terms of profit. The tables at a restaurant are no different than the service bays in our business. The more people you can process through the restaurant, the more profitable the restaurant is. The more cars we can process through our service bays, the more profitable we are.
While I don’t fault the owner of the restaurant for recognizing the need to be profitable, I do fault the owner for not understanding a basic rule in achieving success in business. And that is: You build a business one customer at a time and by developing strong, long-term relationships with those customers. And to maintain that success, a business must continuously cultivate those relationships.
The owner of this restaurant didn’t get it. All of us had dined at his establishment before. The owner didn’t see us as an opportunity to strengthen the relationships. He saw the opposite. By asking for our table, he put the emphasis on his next sale and eliminated any chance of us returning again. Losing customers, and not understanding why, is the kiss of death for any small business.
What the owner determined important was profit per table, per person. The process to get people fed and done became the primary objective, when it should have been ensuring its customers were enjoying a nice meal and having a great time. It was a mistake that eventually led to his failure. Never think that customer quantity ever outweighs the quality of the customer experience. Making a memorable experience is the essence of great customer service.
If we dig a little deeper, we find another mistake made by the restaurant owner: believing that the customer experience was over when the meal was over. The meal was prepared, it was served and we consumed it. Then, at some point during the end of that process, we became an obstacle to his next sale. He failed to comprehend that the sale is not over when the meal is over, and that everything that occurs right up to the moment when a customer drives away from his parking lot will have an influence on whether that customer will return in the future.
The lesson for us is simple: Never lose sight of the importance of creating a customer. Establish a culture in your company that cultivates long-term relationships. Build a process that always strives for world-class customer service during the entire customer experience—and especially at car delivery.
Never think that when the technician completes the repair, your job is done. The customer experience continues right up until the time the customer is picking up their car. The time you spend with the customer after the repair is done is as important as making the sale.
Value each customer. Work on those relationships. Don’t worry about short term profit gain. Remember: building long-term relationships, builds long-term profit.
By the way, that restaurant has recently opened up again. My friends and I went there for dinner last Friday night. We noticed that the new owner was walking around greeting everyone. He eventually made his way to our table, introduced himself and said, “Can I get anyone anything? It’s great to see you here tonight and hope to see you again soon. Thank you.”
Now, you tell me: Do you think we’ll go back?
This story was originally published by Joe Marconi in Ratchet+Wrench on February 1st, 2019
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