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Dec 11 at 8:39am  |  Uncategorized

Moving on from taxes, this holiday season is probably busy for you (it is for us!) ... and I've become increasingly aware that though I send you strategies, tips and whatnot every week -- it can be a pain to pull them off in the evenings, when the demands of family and the necessity for down-time pulls at you.

So, I have a bit of a novel proposal for you, in this week's Strategy Note. I believe it could help you in multiple ways--your bottom line, your taxes ... and even your mental health!

Let me know what you think!

Dec 11 at 8:38am  |  Uncategorized

It Doesn't Have To Hurt
So Bad To Add Revenue



I
find that most business people under-price their products and services

Sep 23 at 2:39pm  |  Uncategorized

Ted Smith's
"Real World" Personal Strategy
How The Legislative Process Creates Tax Cheats
You may have seen the news that Capitol Hill is stuffed with people who owe back taxes. But that's not what I'm talking about here.
[That article is here: http://www.washingtonpost.com/wp-dyn/content/article/2010/09/16/AR2010091601770.html ]

Rather, I'm pointing a finger at the actions taken by Congress which hurt our voluntary tax payment system.

Now, of course, the truth is that we don't have the choice to not file or not pay what the tax laws say we owe. That's why the IRS audits returns and has all sorts of mechanisms (liens, refund offsets) to encourage us to file by each April 15, and to do so correctly.

But even with payroll deductions, etc. we U.S. taxpayers are trusted to fill out the forms, ensure the correct amount was withheld and let the IRS know what our true final bill was. That's called tax filing. And if we discover that we owe the U.S. Treasury, then our system, as it stands now, relies on us to send in the necessary payments. This, of course, is what we spend much of our time on around here--helping YOU do this ethically, but ensuring you're not overpaying.

But Congress seems to encourage tax cheating.

They do this--probably unintentionally--by tinkering with our tax laws so much. They change them, sometimes slightly, sometimes quite a bit, and they do so constantly. What's worse is the procrastination in the House and Senate. I see this all the time. As a regular course of business.

And these delays in tax changes -- or the decision to make some laws retroactive months later (extenders, estate tax, etc.) -- totally screw up basic tax planning, sometimes negating options that could have been used to legally lower a tax bill.

(Which, incidentally, is why I have to pay so much attention to what's happening in the legislation. I do this so you don't have to!)

So some people cheat. And, unfortunately, they feel justified in doing so.

Last week, I saw a blog comment by a tax-filer which opened my eyes:

I did take the original tax credit and ... felt cheated when the revised 2009 credit was passed. This is especially true since I closed just 11 days too soon to take the revised credit. So I will dutifully pay back the $500 credit on my 2010 tax return, but I will also find a way to skim $500 (read: cheat) somewhere else on the return (not hard to do since I'm self-employed and can easily "forget" to report some income) and will continue to so for the next 15 years

That person was talking specifically about the first-time homebuyer tax credit and the many ways Congress fiddled with it after its creation in 2008. But there are plenty other tax laws with similar histories that tick off filers enough so that they look for ways of getting payback when they fill out their 1040s.

Now I'm not condoning this taxpayer's or anyone else's decision to "even up" the tax code where a person might find it unfair. Life is unfair and taxes are a huge part of life.

But Congress can do a lot to prevent such "they hurt me so I'll hurt the tax system right back" attitudes by doing its tax-writing job in a more rational and professional manner.

Until it does, then Capitol Hill is going to keep creating tax cheats.

But here's where the hope comes in...
For my clients and contacts, you can rest assured that we are paying attention...and will be on top of even the procrastinating legislators. We'll make sure you don't make moves that you'll regret after the fact.

And the best way to help us help YOU, is by giving us a call to talk things through this fall:
417-581-2900

I'm personally dedicated to the success of your family--your peace of mind, Ted! Can other tax professionals say that?

Warmly,

Ted Smith

Sep 23 at 2:37pm  |  Uncategorized

Ted Smith's
"Real World" Business Strategy
Interview Questions That Work
Frankly, there is just so much pabulum out there about how to conduct an interview... "What's your greatest achievement?"; "How do you respond to adversity?"; "What's your favorite color and why?" ... and so on. Yikes.

Many interviewers (and managers) resort to this approach simply because it seems what everyone else does. Unfortunately, it's not only lazy, it's terribly ineffective. No, high-quality questions should have four characteristics:

1) They should be easy to answer. They need to be direct, and focused into specifics as much as possible.

2) They should have just one answer. Instead of asking a general question like, "How do you deal with deadlines?" ask, "What was the biggest deadline you had in writing your last book? Step me through how you dealt with that deadline." The second question gives you specific information you can use to evaluate the candidate.

3) A clear, specific purpose. The purpose of every interview question is the same: to gather a piece of data--but it doesn't ALWAYS have to be a direct attack For instance, if you want to know if someone stays current on the latest technologies, a good question would be, "What technical journals do you read?" as opposed to, "What's the last book you read?"

4) They should be task-related. Sure, we all like to delve into personal issues, but you're always better off if you stay with topics that are very specific to the job.

I've put together a good list of sample questions that you can use, as a guide for putting together interviews and performance reviews...these are, samples, of course, and can be a jumping-off point for you.

*Factual questions
-How many people report to you?
-By what percentage did you increase sales last year?

*Action questions
-How did you handle the last customer problem elevated to your level?
-Step me through how you debugged that particular program.
-How did you build your business plan for the roll-out of that division?

*Candidate-specific questions
-What was the last deal you closed?
-What was the biggest objection you got in that sales cycle? Step me through how you overcame that objection.

To re-cap, these specific questions are good because they require specific examples of behaviors, not just "sound good" theories. If your candidate can provide specific examples of past behaviors, chances are she'll exhibit those same behaviors in the position you have available.

*Probing questions (these are follow-up, clarification and detail questions):
-Tell me more about that.
-Could you please be specific?
-What do you mean by that?

Remember, past behavior is the best predictor of future performance.

I'm personally dedicated to the success of your business--and your staff, Ted! Can other accounting professionals say that?

Warmly,

Ted Smith

PS--If you are receiving this and are NOT a subscriber to our weekly "Real World" Business Strategy Email series, send an email to me with the subject: "Add me to your business list", and we'll put you on there.


Ted Smith, CPA
Tax and Wealth Adviser

417-581-2900
www.tedsmithcpa.com
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Sep 09 at 2:00pm  |  Uncategorized

You will never find time for anything. If you want the time, you must make it.
- Charles Buxton

Moving into my Strategy Note, this one was inspired by something I read by Seth Godin in one of his recent books (Linchpin). Enjoy!

Ted Smith's
"Real World" Business Strategy
The Problem is The Answer
Nobody is looking to buy something to solve a problem they don't think they have.

However, one of the big problems I see in how people market to ME (and, of course, in how they market generally) is that they jump right into features and benefits without first understanding and/or speaking to whether the prospect thinks they have a problem needing a solution.

The challenge is this: if a prospect hasn't had their identity stolen, they don't really think there's an issue with having their personal identification details all over the web. They won't wake up in the morning dreaming about how to solve it, or go to bed wondering how much it's costing them (or would cost them) to ignore it.

And so the marketing challenge is to sell the problem. Which, of course, is what drove LifeLock™ to so much success.

Here's the thing: many people don't actually see that they have a problem unless they also believe that there's a solution ... so part of selling a problem is hinting that there's a solution that others are using, or is right around the corner.

Imagine, for example, getting the information about the toxicity levels of carpets after a certain age. If you knew that your carpet was X years old, and you were suddenly confronted with compelling data that, as a result, you were exposing your family to much higher levels of infections and sickness--voila. You now have a product with demand (carpet cleaning). But your prospect also then needs to see that there is a valid solution, in order to be willing to accept and deal with the problem--which, of course, is where your product (or service) then comes in.

And for the business-to-business realm, when a prospect comes to the table and says, "We have a problem," then you're both working together to solve it--which, of course, is a completely different sales environment--and one which you want your marketing to continually provoke.

On the other hand, if they're talking with you simply because you're persistent and/or charming, the only problem they have is, "how can I end this quickly?".

I'm personally dedicated to the success of your business--and your sales, Ted! Can other accounting professionals say that?

Warmly,

Ted Smith

Sep 01 at 2:39pm  |  Uncategorized

"There are two lasting bequests we can give our children. One is roots, the other is wings."
- Hodding Carter, Jr.

Wow--I suppose I struck a nerve.

Last week, I sent you a Note about protecting kids from financial hardship, and I got so many emails and calls about it from clients and friends that it's clear to me that it was forwarded all over the place and shared.

When I set out to write these Weekly Notes, I didn't quite understand how much people wanted an accounting professional who cut through the tax gobbledy-gook and spoke to the heart (*and* the wallet)!

Well, I got the message. So, I'm going to return this week to the subject of children, but this time, about the older variety. This one is for those of you who have children just starting college--or are well underway, but need a little financial "kick in the pants". I'm happy to be your proxy scold! [Oh, and you can delete those last two sentences before you forward ;) ]

Let me know your thoughts!

Ted Smith's
"Real World" Personal Strategy
What I Wish I'd Known About Finances In College
When I started university, I was a little nervous about what was about to transpire. Honestly, I thought I might be biting off more than I could chew. I should have known that I had little to worry about. But there are a few things I wish I had known -- or at least thought about -- before entering college...

Who is paying for college? Many have their undergraduate education paid for by parents, scholarships, and/or loans in their name [or their parents']. If your parents are paying for your education, be careful not to fail any courses. If you fail a class required for your degree, you will have to take that class again, paying for it twice. It's not worth it, particularly since it's usually difficult to outright fail a class. Paying for college yourself supposedly gives you ownership of your academic decisions while in school, but if you're in a situation where you don't have to worry about affording your own tuition, then consider yourself lucky.

Work shouldn't interfere with studies. I am quite grateful I didn't have to pay for all of my undergraduate education. It allowed me to focus on my education and extracurricular resume-building activities in my field rather than focusing on earning income to afford tuition. I did find a few jobs, however. I stayed on campus for winter and summer sessions to take more classes, but with a lighter load during these in-between semesters, I held various part-time jobs, and these jobs provided me with a little extra cash. I probably spent it just as fast as I was earning it, however.

Open a Roth IRA. These retirement accounts were brought into existence about 16 years ago. If I had had a way that I could put money away for retirement in a tax-advantaged account while I was in such a low tax bracket, I might have taken advantage of the opportunity. Then again, I might not have. It's hard to imagine retirement before you've officially begun a career, but it's harder to argue with long-term investing in the stock market--even in these times of economic uncertainty.

Like many, I played the "stock market game" in elementary school. By the time I entered college, I probably knew only a little more about investing, but my interests lay elsewhere so I did not particularly think about having a secure financial future. I'm not going to go on and on about the power of compound interest here, but suffice to say--it's incredible when you start in college.

Avoid credit cards. The credit card companies are (still) vultures on college campuses. The companies set tables outside the dorms with applications and free tee-shirts, enticing sub-fashionable freshmen (like myself, at the time) to sign up. Although I escaped relatively unscathed, having a credit card without a job is asking for trouble.

One particularly sneaky aspect of college-geared credit cards is the introductory offer. Even with the recently-passed CARD Act, the fine print on these deals are heavily weighted AGAINST the college student, and (of course) in favor of the banks.

Further, here are some other goodies from Forbes for the financially-savvy student:

* Use credit cards sparingly
* Pay all credit card balances in full
* Get the best deal on a checking account
* Start saving
* Keep track of your spending
* Set a limit on entertainment
* Shop at second-hand stores
* Keep an eye out for free money
* Get a part-time job with tips
* Walk or ride a bike -- don't drive
* Avoid the tax on stupidity
* Look for student discounts
* Don't eat out all the time

Had I known what I know now about compounding interest and the tendency for the stock market to increase over time, not just theoretically but from experience, I'd be in an even better financial position right now.

And it's not about having more money, it's about having more options for doing the things we like to do.


I'm personally dedicated to the success of your family--and to your finances, Ted! Can other tax professionals say that?

Warmly,

Ted Smith