Paperwork Housekeeping Tip

By now you should have all of your taxes filed, unless you filed an extension. Now is a good time to consider what records and files you should keep and what you can discard. The paperless office is still a distant dream to me, but we can try to cut down on how much paper we keep by following a few basic guidelines.

The IRS website (www.irs.gov) offers official several informative publications on record retention. For example, Publication 552 is for individuals and Publication 583 is for for businesses. Most states also have easily accessible websites that provide guidelines and recommended record retention policies.

The list below is a general list of documents along with suggestions regarding how long to retain them. Of course, you should always consult your own accountant for specific information related to your particular business situation.

I use a rolling system of record keeping. I keep the current year and last year's records in file drawers in my office. For older records, I have a set of six large totes in my attic. Five of these are labeled by the year, while the other one is labeled Returns - Keep Forever. Despite what the government guidelines say, there are some records that I like to keep forever. I have this ridiculous idea that my great-grandchildren might find reading my old tax returns interesting when they clean out my attic some day in the far off future.

Using January 2010 as an example, here is what I do. In January of 2010, the 2003 tote came down from the attic. I then shred or burn the 2003 records and re-label the tote for 2008. I take the 2008 files from my office and load them into the tote, then the tote makes a return trip to the attic. Lastly, the 2009 records get shifted from the current year drawer to last year's drawer and we start all over again with 2010.

Year-End Checklist for QuickBooks

The checklist certainly does not cover everything required to put 2010 to rest, but it's a good general start.

Reconcile

Reconcile all of your bank and credit card accounts with your December statements to ensure all of the balances in your QuickBooks accounts are correct and ready for tax preparation. If you reconcile every month, this task is 99% done by the end of the year. When making loan payments, be sure to check that the amounts going to principal and interest are accurate when you enter the payment every month. The result is that at the end of the year it takes only a minor adjustment, if any, to get the principal balance to match your bank's loan statement balance.

Report

Print and proof reports for your files: Profit & Loss and Balance Sheet reports are essential. In addition to your digital records, have file copies of your year-end business reports printed. These printed records are a good quick reference if you want to compare one year to another. Natural disasters, fires, and thefts of computer equipment, all of these things make our computer records vulnerable and having that printed information could be very important to you in the future. Giving your accountant copies is also a good backup plan.

Backup

Make two backups of your QuickBooks company file. Store one copy off-site in a secure location. You should definitely have a backup procedure in place for all of your computer records. To determine how far you will want to go with your backup procedures, think about how painful it would be to lose all of your data and then backup accordingly. One method I recommend is to purchase multiple thumb drives and label them for different days of the week, to give you a series of "rolling backups" in the event one of your storage devices fail. Another method to use is an online backup service. I use Mozy.com to backup my computer files online. Each morning Mozy leaves me a screen open to confirm that my files were backed up to a website while I slept. Mozy also leaves a reassuring green checkmark next to every backed up file and folder. Using multiple storage devices and having some type of off-site storage are the main components of a good backup program.

Taxes

Print and mail your W-2/W-3, 1099, 940/941 and 1096 tax forms. Go through your Vendor list and double-check that all of your vendors who require 1099s are set up with 1099 vendor status and that you have their social security numbers. QuickBooks will print all of your 1099s and the 1096 reporting form for you. You can purchase the government required forms for a nominal price from any office supply store. QuickBooks does an excellent job with all of your payroll reporting forms also.

Data Integrity

Ensure your data integrity. As your data file gets large (in excess of 50 MB), you might encounter corruption. Problems are much easier to fix when they're caught early and still small, so follow these easy steps to check the integrity of your data. It's a great idea to do this when backing up your files. Close all windows, then use File > Utilities > Verify Data to verify your data integrity. If verification fails, it will give you instructions on the screen for how to proceed.

If you are instructed to run the Rebuild, go to File > Utilities > Rebuild (this will require you to make a back-up). After the rebuild finishes, run Verify again. Recently, we have had several customers have issues with some of their lists looking incomplete even after verifying their data. Running the Rebuild corrected the lists even though QuickBooks did not indicate their data was corrupted. I suggest running the Rebuild tool monthly after a backup just to keep your data in good shape.

File

A complete printed set of file folder labels is available from your QuickBooks Company File. Simply click File > Print Forms > Mailing Labels to set up the specifications. I set up my file folders right away with these labels for the companies I know I will need and then store the rest in a folder at the front of my files for companies I am not sure I will be using that year. I keep two years of folders in my office for easy access. I have seven large plastic tubs in my attic for previous year's records. At the end of each year, I empty the oldest tub, retaining tax and payroll records, and put the most recently retired records in it and send it back to the attic.

Your Toolkit for Success in 2009

Here are some things to put in your toolkit for 2009:

1. Learn to use your computer more effectively. Watch our Computers 101 video. Once you know how to navigate around on a computer a whole new world of possibilities is open to you.


2. Back up your computer data online. Use either Mozy or Carbonite; both are easy to setup, very inexpensive, and easy to use.


3. Get your accounting computerized ~ purchase QuickBooks and our QuickBooks and Quoting, then sign up for our online QuickBooks courses in January or March. (Remember, all of our courses are recorded and available for you to view for up to 60 days)


4. Start using Microsoft Outlook as your CRM (customer relationship management) software. Outlook can handle your calendar, email and contact data information. Once you start using Outlook you can sync that information with your PDA phone. You'll love this feature! You can even purchase Customer Manager which will act as a liaison between QuickBooks and Microsoft Outlook. You will only have to enter customer information once and both QuickBooks and Outlook is updated. It's a real time saver and so inexpensive.


5. Get a professional looking logo or maybe just freshen up your existing logo. Sign up for our newest online course, "Create a Customized Logo," and learn all the ins and outs of creating a logo.


6. Secure a domain and create a website for your business. Give Simplified Websites a call to get started right away. Simplified Websites is easy to work with and, best of all, they will do the entire layout with their RapidStart program. All you have to do is provide them with photography and text regarding your business. Be sure to check out the examples of their work. If you don't have a website or you would like a more professional looking site, this should be high on your list. Don't put this off any longer.


7. Update your portfolio in a totally new and unique way. Several of you accomplished this task this year after you took our "Create Fabulous Portfolios" course and some of you decided to wait. If you are one of the people that decided to wait, why not add a new updated portfolio for 2009 to your list and purchase our "Create Fabulous Portfolios" course. When you purchase this recorded online course, you will have access to it for 60 days.


8. Start offering new and unique services like the "Design in Five" technique with Minutes Matter Studio.


9. Read educational articles for at least three hours each week. Top of the list, of course, is the Minutes Matter E-zine. We always are sharing information from the many articles we read and the numerous conferences we attend.


10. Revisit past marketing campaigns and revamp them for 2009. Purchase our Power of Innovative Ideas book when it becomes available in early 2009. This new and unique marketing book is chock full of innovative techniques. For more marketing tips, sign up for Jeffrey Gitomer's ezine. He is amazing and sure knows how customers want to be treated.
    

Review your list of goals at least once a month to ensure you are on schedule and to make necessary revisions. Wouldn't it be great to see most, if not all, of these goals accomplished by 2010? Once 2009 comes to a close and you reflect back and see all of the goals you have accomplished since the beginning of the year, the pride that you feel will be "Priceless."

7 Reasons Coupons Don't Work . . .

One of the things I typically do when I take on a new client is to discontinue any discount programs. In fact, I often raise their prices. One owner was skeptical of such an idea; after all, any money in the register was money in his jeans. I told him that if we say we are a boutique or a gourmet coffee house, there is a perception of something special, a premium location or gourmet product offered. Once it is discounted, the cachet of the product is cheapened. The competitive edge is gone.
Untrained marketers who say we need to do something always go the easy let's discount way. It takes very little imagination and since everybody else does it, they assume it must work. Anyone can be a discount whore; it takes no brains or skill. There is no forethought. No magic or relationship results. And once you do it, you're often condemned to repeating it.

I will admit that certain coupons can bring in business much like spot sales can boost your numbers. The problem is that you are in dangerous waters; the icebergs are numerous.

Here are seven reasons coupons don't work:
1. Coupons are looked at as an ongoing effort. In effect, they become the whole marketing plan.
2. By the time you factor in your time in creating them, printing them, distributing them and factoring in the actual discounting itself, you have a very expensive promotion.
3. You have taught the customer that your product is not worth what you priced it at.
4. The people who found you through coupons will wait for your next one.
5. You are rewarding people who have no relationship to the success of your business.
6. Your sales staff will keep a copy of the coupon to offer to their own customers or friends.
7. If your regular customers who have supported you find out someone who's never been there is getting a better deal than they are, they just might not return.

Here's an example:
That's precisely what happened at a local restaurant in Long Beach where a group of us went for a birthday celebration. Located in an old craftsman house with antiques and a wood-burning fireplace, this was a great place to enjoy a great meal. We had ordered wine before dinner, enjoyed fabulous entrees and saved room for their signature desserts.

When the couple at the table next to us paid their check with a 50 percent off coupon, the owner must have been tipped off. He went to their table and sat down. We overheard him talk about his participation in the 50 percent off Entertainment Book. He said that he valued the Entertainment Book because it brought in customers who had never tried him before. He told them the story of his business, how he and his wife built it and how many years he'd been there. The coupon bearers told him they were from Pacoima, about an hour's drive from the restaurant and that they would never have come without the coupon. He smiled, wished them well and said he looked forward to seeing them again.

I was incensed! We lived in the neighborhood. We'd gone there for years, paid top dollar and received no special recognition. How did we feel? Who was more important? Here we had paid full price as usual and the people next to us who had no relationship paid half-price. I haven't been back since.

Cut your prices repeatedly and you'd better cut your staff because profit is what suffers.

Learn more:
You can learn read more thought provoking ideas by reading Bob Phibbs, The Retail Doctor's Sales Blog.

***Note: We received permission to use above article."If you are a newsletter editor, my past newsletters and articles are posted there as well for you to use or reference."

Are Magazines Taking Over Your Office?

Hi, it's Debbie Green with Minutes Matter. This week, I would like to give you a few simple tips to take control of all those magazines you receive. If you wait until you have 15 - 20 magazines to go through at one time, there will never seem to be enough time because the task is overwhelming.

• First, wait until you have the time to look through an entire magazine.
• Tear/cut out photographs of window & bed treatments, floral arrangements or other items of special interest. (Be sure to tear out articles of personal interest as well.)
• After you have removed all the photographs and articles you want, toss the magazines into your recycling bin. I know this may seem like a cruel concept, but who else is going to want the magazine after you've taken out all of the good stuff. By tossing the magazine you will rid yourself of a tremendous amount of clutter.
• Clean up the photographs by cutting away any advertisements and straightening up all edges.
• Use doubled-sided tape and mount them on card stock/index paper; use the front and back of the card stock/index paper.
• Place the mounted photographs into plastic sheet protectors.
• Create four View Binders with categories (Bedding, Pillows, Etc. Draperies Swags Top Treatments & Shades)

These neat organized binders can be a great asset to your company. I allow my clients, especially the ones that have never had custom window treatments, to borrow them over a weekend. Just like your local library, I "check out" the book to clients to keep track of this valuable resource. I also give them a pad of 2" x 3" Post-it notes to flag rooms or treatments they favor. Many of our clients are not exposed to custom window treatments on a regular basis; so, in a sense, your client is getting educated on what design styles are available. When we meet for our appointment, the client has already narrowed down some choices so the decision process is much faster.