Employment

Why Your Small Business Needs an Accountant

June 21, 2012 by Tim McMahon

Small Business Accountant

Many people who start their own small businesses do so as a means of determining their own destiny. They are their own boss, operating the business their own way and planning for the future with their own ideas. There are, however, certain laws and regulations legislating aspects of any business. For this reason, and more, it is a good idea for any small business to have an accountant.

Small Business Accountants Can Handle Payroll

Small business owners often wear many hats: boss, lease negotiator, inventory specialist, decision-maker, payroll, shipping and receiving, IT, HR, and occasionally even custodian. In the midst of all of that, they also manage employees, even if those employees are contracted. State and national law dictate what forms those employees need to fill out, how much of their paycheck is deducted for taxes, benefits, and Social Security. Business owners are forced to either learn the tax laws (and the changes to said laws each year) or hire an accountant to help. Just managing payroll can be time-consuming, as an owner your time is valuable and should be spent growing your business.

Small Business Accountants Can Handle Taxes

Even contract labor requires certain documentation. If a company pays a contractor more than $600 over the course of the year, a 1099 must be filed. Keeping track of the various tax amounts for various employees as well as which contracted employees earned how much can easily become a full-time job. Small business owners have plenty of other details to manage without adding that to their plates. If only for personnel purposes, an accountant will save time as well as headaches.

In addition to managing tax issues for employees, a small business accountant will help navigate tax concerns for the business itself. Capital improvements, profits, loss, depreciation, and potential write-offs may exist. Some small businesses pay taxes quarterly rather than annually, requiring an ability to understand and follow additional tax laws. An accountant can save you money by avoiding government penalties and late fees but also by pointing out deductions, monitoring for “slippage” or missing funds, and other ways to save money. [Read more…] about Why Your Small Business Needs an Accountant

The Basics of Starting a Small Home-Based Business

June 20, 2012 by Guest Contributor

A Small Home-Based Business

In today’s economy, there are definitely a lot of people that are struggling to find jobs, who don’t know where to turn. Instead of sitting around waiting for their unemployment benefits to run out or for someone to offer them a job, they are using the grace period of unemployment checks to start a small home-based business. A small home based business allows you to take control of your own financial situation, instead of having to rely on anyone else. In a small business, education and experience aren’t as important as the ability to get the job done. Having your own business also entitles you to a variety of tax benefits. If you are interested in starting a home-based business, here are a few things that you’ll need to do in order to be successful.

Handle the Business Formalities

Small Home based business, home red — Home business, home red—nikcname (Flickr.com)

A Small home based business is not a hobby or a lark it is serious business. So just like with a large business, you’ll need to handle some formalities when starting your business. These ensure that you are doing everything legitimately, and that you will not be in violation of any local laws. When getting started, most localities require you to get a business license.

To get a business license, you’ll need to go to the local court house and pay a fee and possibly answer a few questions. Some localities regulate the types of business you can run from your home. Most allow work done on a home computer or over the internet but some may have zoning restrictions if you are going to store chemicals or have customers visiting your home office.

Most of the time, you’ll also want to set up some kind of business entities so that you do not have to put any of your personal assets at risk. Setting up a corporation or an LLC is pretty simple, and can usually be done by filling out a few more forms and paying a state filing fee. Filing fees for an LLC vary by state and can range from $50 per year to $1000 or more depending on whether you are in a state like Delaware or California.

The Secret to Making More Money: Stay in School

June 19, 2012 by Guest Contributor

Stay in School=Make More Money

It’s no secret that the more you learn, the more you earn. The United States Department of Education estimates that young adults with a bachelor’s degree earn more than twice as much per year on average than young adults who didn’t graduate from high school. And according the the U.S. Bureau of Labor Statistics the higher your education the less likely you are to be unemployed. See: The Difference a Degree Makes in Unemployment Levels

Learn how much more you can earn each step of the way with a higher degree and decide where you want your road to stop.

High School Diploma or GED

Staying in school long enough to earn your high school diploma will earn you approximately $30,000 per year, which is $9,000 more per year than if you drop out of high school. If you estimate that most people graduate high school when they are around 18 years old and work until they decide to retire around age 62, that calculates out to about $396,000 more over your lifetime just to stay in school until graduation day.

Stay in School 2 More Years- Associate’s Degree

If you decide to continue going to school after graduation but aren’t quite ready to commit yourself to a four-year program, associate’s degrees offer the opportunity to get out into the working world sooner while still having an advanced degree. Associate’s programs are great for people who want to go into technical fields or start at lower-ranking positions and work their way up. The average annual salary for someone with an associate’s degree is $36,000, indicating a jump of $6,000 per year over high school graduates and $15,000 more than students who didn’t earn their diplomas.

But what if you stay in school 4 more years?

How to Get a Career Instead of Just a Job

June 18, 2012 by Guest Contributor

I once met a young man who was complaining about change and this is what I told him.

” The only thing Constant in Life is change.
Those who adapt quickest thrive…
Those who adapt slowly survive…
Those who don’t atapt at all…
are relegated to the lowest levels of existence…
Poverty and misery.
The key to success is to adapt quickly…
it will put you at the head of the pack.”

In this article we will look at how change affects your job prospects and what you can do about it.

Tim McMahon~ editor

How to Get a Career Instead of Just a Job

Ever since 2008, government officials have been scrambling to put the economy back together, and it’s hard for someone without work to find a place for themselves within the chaos. The world has changed; products that were once the hallmark of American civilization are no longer in demand, and if they are, they’re shipped from another country. We’ve become a mostly service-based economy with millions of people that need jobs and few openings for them to fill.

Despite this, it’s a time of unparalleled opportunity. New niches are being created, new technologies are being introduced, and it’s never been easier to educate yourself, whether it’s through school or self-study, or starting your own business. Unskilled labor is disappearing, but anyone that can adapt has a bright future ahead of them.

The Top 5 Health Insurance Companies

June 16, 2012 by Guest Contributor

Finding The Right Health Insurance Company

With fewer jobs in the country due to a poorly performing economy and many large companies moving jobs offshore to reduce costs, many US residents have taken it upon themselves to open up their own small businesses. Naturally, these entrepreneurs are looking to find the best health coverage for themselves as well as for their families. Researching the right health insurance plan that will not only satisfy your individual needs, but also the needs of your family is no easy task, as health insurance coverage needs vary from person to person.

When conducting your research on what coverage you need for your health needs, the insurance company will consider the following factors:

Your age
Your Income
Whether or not you smoke/drink
Your Geographic location (not all providers are available in every state)

You on the other hand will be concerned with these factors:

What is the deductible?
How much is the co-pay for each doctor visit?
How much is the co-insurance? (The percentage you have to pay before you reach the out-of-pocket limit)
Out of Pocket Maximum Per Year
Maximum per Person / Per Family
Exclusions (for Preexisting conditions etc)
Limitations on which Doctors you can use
Acceptance at local hospitals
Out of Network Acceptance (if you are traveling)

An excellent way to reduce your health insurance costs is by using a Group Health Insurance Policy. If you can get insurance as one of the Benefits through your place of employment or even by join a group or organization, you may be able to reduce your costs by getting in on a group policy.

See: What is Co-Insurance?

Group Health Insurance Policies

How to Find the Right Health Insurance Policy?

Tim McMahon~editor

The Top 5 Health Insurance Companies

According to online sources, there are a total of 25 noted health insurance companies that rank well in the services they provide and the fees they charge. The Top 5 Health Insurance Companies are as follows:

Jobs Report

June 8, 2012 by Tim McMahon

Non-farm Payrolls

The latest jobs report came out on June 1st with the U.S. Department of Labor reporting that non-farm payrolls (jobs) increased by 69,000 in May (seasonally adjusted). See Current Employment Data for the unadjusted non-farm payroll data.

Today’s chart compares the total nonfarm payrolls (blue line) to its two components Private sector job market (gold line) and Government sector job market (red line). But rather than showing total jobs it shows the percentage change in total nonfarm payrolls (blue line) since the declared end of the Great Recession in 2009 (the vertical line). So at that point it is zero. Prior to that point private sector jobs were as high as 7% higher while public sector (government) jobs were 2% lower (i.e. the government increased its employment from 2007 through 2009).

This chart illustrates, the overall job market (blue line) continues to trend higher albeit at a pace that has slowed over the past several months. Today’s chart also illustrates that the government job market has been trending significantly lower since the first half of 2009 (with the exception of temporary census hiring in mid-2010). This decline is due to federal, state and local governments attempting to realign their budgets following an unexpected decline in revenues as a result of the historic plunge in housing prices (i.e. property taxes, capital gains, etc.) and nonfarm payrolls (i.e. income taxes, payroll taxes, etc.).

One of the major tennents of Keynesian economics is that during a recession as the private sector is shrinking the public sector should increase and provide jobs and run deficits. But the side of Keynesian economics that most politicians forget is that the public sector is supposed to shrink and budgets are supposed to be balanced and debts repaid during good economic times.

The Non-Farms Payroll chart is courtesy of Chart of the Day

Expanded Horizons: Doing Business Internationally

June 2, 2012 by Guest Contributor

Doing Business Internationally

Whether you are a recent college graduate casting furtively about for work, or you’ve been in the workforce for a few years and haven’t much to show for it, or you’re a business owner struggling to gain a competitive edge in your industry… you may be wondering what you have to do to get ahead in this economy. If you are considering traveling to a fast-growing international market to pursue a career or business opportunity, you’ll want to keep a few things in mind.

International Business- Market Growth

International business, Salão do Chocolate na Bahia—Fotos Gov Ba (Flickr.com)

Whether you own a business or you are just looking to advance your career, you can take advantage of long-running macroeconomic trends by moving your business abroad. Whereas the American economy is forecast to grow between 2 and 3 percent annually over the next few years, foreign business in places like China and Brazil are enjoying regular growth rates approaching 10 percent annually. As a worker, this guarantees you both job security and upward wage pressure. As a business owner, this ensures that the markets for your products and services grow at healthy rates. In either case, you’re likely to be better off a few years down the road by doing business internationally.

Preparing For a Global Economy

These days, analysts in the know repeat mantras about “globalization” and “leveling the playing field.” But… What do they mean?

Simply put, the trend towards economic parity between developed nations like the United States and still-developing countries like China means that national borders are becoming less important every day. To prepare for doing business internationally and take advantage of this new economic reality, expand your horizons by:

Great Jobs for Those with a College Degree

May 30, 2012 by Tim McMahon

College Degrees Lead to Good Jobs

Ask anyone who is carrying hundreds of thousands of dollars in college loans and they will tell you that a degree is an expensive investment. And like any investment you should be concerned with ROI (Return On Investment) or the value you get back for not only the money you invest in your education but on your time investment as well.

: College degree, Will Folsom(Flickr.com)

Research proves that those with college degrees are higher earners and suffer less unemployment on average than those with only a high school degree. Since a college degree is a smart investment, why not choose a degree program that promises a strong return?

The following jobs for college grads tend to be in high demand and have higher wages.

Human Resources

Working in human resources means dealing with hiring, firing, and other administrative management of the work force. No matter what the size or the purpose of a company, if there is more than one employee, there is a need for a human resource administrator. According to the US department of labor, the estimated rate of growth for these positions is over 20 percent for the next six years. With salaries averaging over $100,000, a college degree based in human resources is a safe bet for a strong return.

College Degrees Preparing You for a Human Resources Career

Many colleges offer a Bachelor’s degree in Human Resources Management and although there are also Associates degrees available, many experts agree that an Associates degree is no longer enough to get anything less than the lowest level human resources positions.

How to Finance an MBA

May 27, 2012 by Guest Contributor

Financing an MBA

If you’ve decided an MBA is the best option to further your career, it’s time to get smart about paying for it. A two-year MBA program at the most prestigious schools can cost $100,000 or more for tuition, books, and living expenses. This doesn’t even include the cost of lost wages. Even schools with less name recognition are going to cost you tens of thousands of dollars.

Fortunately, there is plenty of financing help available for MBA candidates. Knowing your options is the first step to researching in-depth solutions for financing your MBA ambitions.

How to Finance an MBA- Using Student Loans

No one enjoys the prospect of going into debt, but there are few better reasons to do so than enhancing your earning power with education credentials. Federal loans are typically managed by B-schools and only require you to fill out a FAFSA. These loans carry a fixed interest rate, and repayment is made as painless as possible. Paying interest while still in school is generally a good way to keep costs down and federal loans also extend a grace period and the opportunity for income-based repayment should you hit a bad patch.

Private loans take more effort to manage, but they can be better in the long run. Your credit history will be most important here. Repayment is not as flexible, and interest rates can be variable. Variable interest is definitely a bonus in a bad economy.

Job Search Scams

May 25, 2012 by Tim McMahon

Unfortunately, the economy and job situations are suffering. When times are hard, unemployment is high and people are desperate, this is the perfect opportunity for others to take advantage of you. Some scams include stealing form your account to having you work for one day and then firing you. An example is a company looking for a ‘marketing rep’ calls you once you apply for the position. They tell you they want you to come in immediately. They make it a big deal and say that there are many candidates and they want to make a decision fast. Once they get you into the office, they complete the interview and tell you that you are great and to come back for a second interview. This second interview requires you to ride along with a salesman ‘to get a better idea’, four hours later you are helping him go , door to door. Once you realize this is not what you want to do it’s too late. You just worked for free.

So before you apply for a job, attend an interview or accept a job review these tips to prevent being a victim of a job scam.

The Online Business Scam:

Job Seekers Awaiting Their Turns Patiently—jobsdbmalaysia (Flickr.com)

A job scam can be found anywhere; however scammers find it easiest to find their victims online. Online job boards don’t have many filters and that means scammers can get away with more. Large job sites like Monster.com and Indeed.comtry their best to monitor but are not always able to keep up with new scams.

This is why it is important when you search online to keep in mind: [Read more…] about Job Search Scams