Dealing with Disasters

For those who haven’t experienced a disaster first hand it’s difficult to imagine, even from the graphic images fed to us by the media, the realities of the situation. What pictures cannot convey is the frustration of an owner watching their business suffer through the several days or weeks during which power is unavailable, transport facilities are out of operation, communications are down and access to the premises is prohibited. It’s exactly those restrictions that can spell the death of a business caught up in a disaster and unprepared to deal with the consequences.

Are you prepared? Ask yourself these questions, they cover some of the most critical aspects of keeping the business afloat after a disaster.

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Private Use of Company Computers Puts Your Business at Risk

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As the use of computers becomes more built in to business operations employees naturally spend an increasing proportion of their time working at them. Working? Really? With temptations such as chat, streaming video, blogs, social networking and myriad other interesting sites (weather, maps, pornography, music, games, gambling, shopping, sports) it’s no wonder that surveys such as Websense’s annual Web@Work study reveal a depressing incidence of non-work related Web surfing by employees.

And its depressing not just because of the loss in productivity due to the amount of time wasted on such activities. These private activities, because they take place at the workplace using work computers, can entangle the business in legal prosecution cases related to their illegal use. 

Play It Safe With Your Home-Based Employees

An increasing number of employees work exclusively or part-time from their home – but home is where most accidents happen. Employers still retain some duty of care responsibility for their home-based employees so it becomes an essential part of any at-home work agreement to factor in a safe workspace that minimizes the chances of accident and compensation claims.

In general, while the expectation is that an employee should be exposed to no more risk than they would be in the office or workshop, in reality an employer has little control over the home situation. Nor is it entirely clear just exactly how occupational safety and health or compensation laws cover this subject.

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Building Your Loan Package

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If you're ready to ask your bank for a business loan -- whether for a credit line or a term loan -- before you make your request be sure you have your ducks in a row. This is your chance to demonstrate to your banker that you're a sophisticated business person well worthy of the loan.

So, how can you help your loan process along? Make sure you have all the following documents and information ready to go.

Business profile. This document describes your business, including annual sales, number of employees, length of time in business, and ownership. A very important part of this profile is the professional resume of you, the owner.

Business plan. If you're a new business this document

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Perils of Unplanned Expansion

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When sales are increasing and new opportunities can be sensed, many a business owner’s thoughts turn to expansion. But unplanned expansion can be as detrimental to your business as no growth at all. Fast growth can destabilize a business giving its owners a false sense of well-being while the additional revenues eat up more operating dollars than expected. If expansion is on your agenda, keep these things in mind.

Watch Your Overhead

The biggest danger in expansion is the erosion of a low overhead structure by unjustifiable purchasing or from simply being too busy to keep track of what is happening. Overhead expenses that were under control in the stable business situation now grow rapidly to cover extra expenses associated with a

10 Things the IRS Won't Tell You

This month's SmartMoney magazine includes a fascinating article called "10 Things the IRS Won't Tell You." As April 15 approaches, it's worth scanning those lessons to make sure you're not next in line for an unhappy tax surprise:

  1. Like it or not, you may need help with your taxes. Tax laws have grown so complicated that 80% of Americans use software or a paid preparer to file their returns.
  2. You don't have to be rich to get audited. Audit rates have doubled since 2000, and the IRS is looking harder at items like big charitable contributions.
  3. Fear is often our best weapon. The mere threat of an audit is enough to scare millions into leaving legitimate deductions on the table. (It's our job to make sure that doesn't happen to you!)
  4. The AMT is our ATM. The AMT was first passed 40 years ago to stop "the rich" from skating by without paying their fair share of tax. But since then, it has grown to hit over 4 million taxpayers.
  5. Just because we billed you doesn't mean you owe us money. The IRS sends out thousands of "CP2000" notices annually. But the vast majority of those "correspondence audits" merely call for clarification, not extra tax.