Today I came across my new “favorite” quote - “Those things that hurt, instruct.” - Benjamin Franklin.

Growth and Change - the two go together.  No one likes to struggle.   Struggles are uncomfortable and we usually try to avoid them.  But we need to learn to embrace struggles and embrace the change that looms.  Things need to be different in order for us to move past the point of struggle.  Instead of avoiding the struggle, we should learn to work through the hurt. 

Consider the analogy of a seed, planted in the earth.  If the seed stays a seed, nothing happens and a plant cannot grow.  But a seed struggles with the soil below it to grow roots.  Then the seed struggles with the soil above it to break through and reach for the light so that a plant can develop.  Unless the seed struggles to change,  it will never reach its potential and produce fruit. 

When we learn to work through the pain and conquer the obstacles in front of us, then we’ll find growth.   Many good things are wrapped in difficulty, but we can’t have the gift inside until we unwrap the difficulty.  Growth takes time.  For many, 2009 will be a year of growth.  How about you?  Will you embrace the struggle so you can grow? 

Identify the pain, embrace the struggle, grow and overcome - enjoy the journey!

The small business owners I work with often ask me how they should keep track of their receipts and records.  Seems like the paper can get out of hand, and before you know it, you have mounds of paper and you don’t know what to do with it.  I’m told that many of my clients spend days, if not weeks, spreading out all those receipts on the dining room table before they come in to my office for their tax appointment - sound familiar?  Ever had that overwhelming feeling you get when you don’t know what to do or how to do it - but that there ought to be a better way?

There is - recordkeeping for your business doesn’t have to be rocket science.  In fact, if you are a sole proprietor, or self employed, you can use any recordkeeping system that works for you.  The main thing is that you are able to back up the totals that you use for the income and expenses on your tax return.  One thing I know - the better your recordkeeping, the better your tax deductions!  Make sure you don’t miss any write-offs.

Some people can simply separate their receipts into stacks by category and add them up.  If it seems better to write things down, you can record the receipt information on spreadsheets - either manually using ledger paper or on your PC using excel or a similar spreadsheet (I prefer the electronic spreadsheet)  - in fact, I have a simple excel spreadsheet I’ll send you via email if you request it. 

If you want to use an accounting program like Quickbooks Pro, you can try to go it alone or find a Quickbooks advisor to help you.  But I have found that many of my clients find that they spend more time fixing problems with their accounting records than they like.  Several years ago, I decided that we would provide an alternative to those clients.  Our CBS program is accessed from our website, where you can pay your bills, invoice customers and record deposits, then every month we pull that file into our accounting system to prepare your payroll tax and sales tax returns and generate the financial statments.  It really can be that simple - no need to understand the debits and credits of accounting - that’s what we do.

What better time to create a great recordkeeping system than now as you close out one year and start a new one?  For more recordkeeping ideas, take a look at my site www.DebraSchillCPA.com - or email me and I’ll be happy to help you get a simple system that works for you.

Are you drawing up your year-end charitable contributions list? After you check it twice, add a reminder to gather the paperwork required to claim a gift for yourself: an itemized tax deduction.

Here are four tips.

1. Remember the new rules for cash donations. You’ll need a written record to deduct cash donations  on your 2008 tax return, no matter what amount you donate. The record must be written documentation from the charity or, if the donation is for less than $250, it can be a cancelled check, credit card, or bank statement.    If you contribute via payroll deduction, keep your pay stub and documentation from the charity (a pledge card, for example).

2. Know when old rules still apply. If you donate $250 or more in money or property, ask for a receipt from the charity showing how much you contributed and any benefit you received in return.

3. Log vehicle expenses. Your record should indicate the charity’s name, the dates you used your car, and either the actual cost of gas and oil or the number of miles you drove. Parking fees and tolls are also deductible, whether you claim actual costs or the standard mileage rate for charitable driving (14 cents a mile for 2008)

4. Keep receipts for unreimbursed items. These include  out-of-pocket costs directly related to charitable service, such as buying or cleaning uniforms used for  your volunteer work.

Additional recordkeeping rules may apply, depending on what you donate. For instance, some noncash contributions require an appraisal. Give us a call. We can review the records you need to obtain the maximum tax benefit.

After spending the last two days in “tax update class” - I can assure you that it is time to do your year-end tax planning!  The legislature has been busy enacting many new tax laws - some of which are sure to affect your 2008 tax return.   Do a tax projection now to see what you can do in the next four weeks to change the result to something you like!  January 1 will be too late.

Are you concerned about the economy?  What’s the biggest challenge you face in your business for 2009? 

Many businesses will not survive the next year of uncertain financial turmoil.  But there will be smart business owners who realize that now is the BEST time to improve your business operation. 

A downturn in the economy is the best time to work on improving your business for two reasons:

1 - you’ll see immediate results that will help you survive the next few months of uncertainty and stay in business while the economy works through this cycle.

2 - you’ll see future results as you will position your business to thrive when the economy takes off again. 

We all need to work on our business NOW to ensure we can survive these times and then thrive when the circumstances around us change.  For more information on how to take control of your businesss success, check out our site.  www.AfterBusinessPlanning.com

Having recently upgraded my site to include videos, I’m wondering about the value of videos when it comes to internet marketing?  I’ve read articles and been told by my advisors that videos are the key to success with online promotion.  

Re: marketing in general, I’ve always been told, and come to believe, that it’s not as critical WHAT you put on your marketing collateral (brochure, postcard, letter, etc) but more important that you just put material out to stay in front of your prospects.  I’m wondering if videos are going to fall into that same concept when it comes to online marketing? 

According to experts, people will be spending on average, something like 20-30 hours a month watching videos online, including YouTube, etc.  I wonder if having videos on your site makes the site more engaging and keeps the average viewer at your site longer?

Anyone with comments on this topic, feel free to post………..

Recently, a client told me he could make his first million dollars if he could just come up with the $33,000 to cover his 20% down payment for the land…………………. He is a builder and it was a 9 building project to take place over 3 years.

Isn’t that the way it always is?  We dream and plan for the big deal that is going to launch us into financial freedom.  But it always requires us to invest our own capital, which most of us have a hard time coming up with.  So do you borrow the down payment too, and head into the project quickly, with a large debt load?  Or do you wait until you have the capital to fund the initial launch?   That is the eternal question………after all, if you miss this opportunity, you might never see another one.  And if you move on it before you should, then you spend years struggling with the debt service.  Certainly with the current credit climate, banks and lenders are not as quick to fund ventures without sufficient capital, even apparent lucrative real estate deals.  So do your homework before you ask for a loan.

Some suggestions for success in funding your project:

SAVE money!  Alot of it.  One thing I have discovered in the last 20 years is that the clients I work with that are “wealthy” later in life, are the ones that saved regularly throughout their whole life.   They didn’t just wake up one day at age 58 and say “now I can retire with my million”.   Starting early in life, they saved a little out of every paycheck and tucked it away without ever touching it.  They didn’t even buy houses and cars until they could afford “most” of it with cash.  And they never overused or abused credit cards.  It’s never too late to start saving - so if you’re “savings challenged” - get started now.  A good rule of thumb, save 10% of your income, give 10% away (givers gain in life) and live on the other 80%.  Do this for a lifetime - say 20 to 30 working years, and you’ll be rich - no matter what your income level.  I’ll be happy to run the numbers for you and prove it if you want to shoot me your details  SO SAVE!

Do a Cash Flow Analysis of your project before you ask for a loan.  By putting forth the time and effort to project the cash flow, your banker will be impressed and you will affirm the likelihood of success.  In simple terms, make a spreadsheet with cash inflows at the top and cash outflows at the bottom to determine positive or negative net cash flow for each month of the project.  For more details on Cash Flow Management and charting cash flow for your banker, check out the online seminars at www.AfterBusinessPlanning.com  There’s a good 1-2 hour Cash FLow workshop there.