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If you are thinking about creating a partnership, you’ll definitely want to listen to Rob’s view on partnerships and partnership agreements. And, if you are already in a partnership, you will get some ideas on what to do and what to avoid. Thanks for watching!

We’d love to add you to our list, where we send out bookkeeping and tax saving ideas as well as good business building practices. Just click here to sign up today.

When’s the best time to plan your exit strategy? The answer may surprise you. (And even if you don’t think you need one, watch anyway because you’ll get some new ideas.) In this very informative video, Robert discusses what situations call for an exit strategy, and how to get started with that important business process.

We’d love to add you to our list, where we send out bookkeeping and tax saving ideas as well as good business building practices. Just click here to sign up today.

Great news on the retirement front! According to Fidelity Investments, managers of retirement savings plans for over 11.2 million workers, this quarter brought an increase in the amount of money people put into their 401(k) accounts for the first time in a year!

Workers raising the amount they placed into funds actually outnumbered those reducing contributions. This is a huge step in our economic recovery, and emphasizes the importance of maintaining equities. The average account balance rose 13.5 percent, which Fidelity attributes to both the rally on Wall Street and higher worker and employer contributions. It just goes to show that maintaining a long-term outlook will reward you in the end!

We’d love to add you to our list, where we send out bookkeeping and tax saving ideas as well as good business building practices. Just click here to sign up today.

Cash has always been king – long live the king! Use cash and then reimburse yourself, you’ll spend less and have better record keeping.

No More Company Lunches for You, Mr. Small Business Owner!

Thinking about taking your clients out for a business lunch or hiring some new employees? Are you ready to expand your small business? Well, because of the new crackdown on credit limits, if you’re a small business owner – think again.

According to the National Small Business Association, 59 percent of America’s small businesses rely on credit cards for daily operations. This number is almost triple what it was just 15 years ago! Over the past six months, credit limits were cut abruptly (some for credit delinquents, of course, but some just for the average small business owner) and now — forget about expanding — business owners have to find other means to just stay afloat!

Over the past few years, there was a push for small business toward credit cards — good deals, great marketing, no interest, fabulous rewards — and now, many are stuck. With the onslaught of surprise limits, many proprietors are reverting back to the old school methods of running a business: cash. Who knows? Maybe a little taste of traditional business is exactly what we need. As with most things, only time will tell.

For a positive perspective on the reduction of credit lines for small businesses, check out Is the Credit Card Squeeze a Blessing in Disguise?, in which Jay Goltz, small business owner and contributor to The New York Times, on his “You’re the Boss” blog, explains that cutting credit for small businesses may not be the worst idea. He recommends against carrying a balance no matter the scenario, and gives some suggestions on how to avoid such a situation. Definitely worth checking out!

Well, now there’s good news for your small business!

On June 8, the U.S. Small Business Administration announced new lender guidelines for the America’s Recovery Capital (ARC) loan program. In essence, the ARC really aims to increase the cash flow of your small business.

Since June 15, SBA’s America’s Recovery Capital Loan Program can provide loans up to $35,000 in short-term relief — no fees, no interests, and 100 percent guaranteed by the government. Loans are backed by small, community banks and do not have to be paid for during the first year. You have five years to repay, and loans will be provided up until September 30, 2010.

As stated in its mission, ARC loans are for “viable small businesses suffering immediate financial hardship.” So check out the ARC loan program and maybe you’ll get that cash flow back too!

For more information on the ARC loan program, check out the SBA website.

“Taxes in July? That’s crazy!” While that would  probably be the most common reaction, it’s really never too early to start preparing for tax season and this summer, the IRS is here to help you out early and get the ball rolling.

Starting next month, the Internal Revenue Service will begin publishing three tax tips per week with the hopes of helping people save some time and money come tax season. Topics will range from the importance of checking your withholding to getting proper receipts from charities to protection against identity theft.

And for convenience, you can even receive these tax tips through email by signing up on the IRS e-news subscription page. It doesn’t get easier than this to get a head start on tax season, so check it out!

Hopefully when it’s your turn to collect social security, the funds will be available. Here’s a few links which will help you to figure out what is your best strategy to collect the maximum that you are legally entitled to. If you have any questions, call me.

Social Security: Why Wait?

It may be tempting to collect Social Security as soon as you’re eligible, but experts say you should resist. Yes there’s the claim “why not collect what is rightfully yours,” but if not only for the risk that you will live a long life, there are also monetary benefits.

You can claim Social Security anytime between ages 62 to 70; however, the longer you wait, the larger your check! You get the most when you wait at least until your full retirement age, which is different depending on what year you were born.

The bottom line is that if you can hold out, you should— strategize for a long life. Of course, the question of waiting varies for each person and each situation, but check out the Social Security retirement estimator to get a precise idea on how to maximize your benefits.

Have you been thinking about YOUR Social Security? Got Questions: robert@rimbergonlinebookkeeping.com

Robert

If you’re having money problems, the best thing you can do: Cut up those credit cards and pay cash! Last month, President Obama passed The Credit Card Accountability, Responsibility, and Disclosure Act (CARD ACT) of 2009 causing citizens everywhere to wonder, “how are these regulations different?” and “how will they affect me?”

The majority of the new rules don’t go into effect until February 2010; however, one rule will begin September 2009 — credit card companies must give a 45 day advance notice on changes in interest rates or contracts. Other rules under the new law require credit card companies to mail statements at least 21 days before payment is due, they must apply payments to your highest interest rate balance first, and they cannot charge a fee for web or phone payments. In addition, consumers need to “opt in” in order to charge above their credit limit.

The overall goal of the CARD ACT is to increase transparency and accountability for both card companies and consumers. For a quick and simple overview of the CARD ACT, check out this great video by The New York Times on the New Credit Card Rules.

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(c) 2009 Robert Rimberg. Request a free copy of the special report, “Learn how to read your financial reports to track your success, prevent mistakes, and find out what all those numbers really mean!” by visiting RimbergOnlineBookkeeping.com/

2009 could be a great year to buy a home, especially if you’re a first time home buyer. Prices of homes are falling, mortgage rates are at an all time low and the government just through in this little extra:

For 2009 Home Purchases

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

For more info go to http://www.irs.gov

Robert Rimberg, CPA

Accounting delays -It seems to be the standard practice these days – a small business owner brings all their paperwork to their accountant, who then turns around and asks the government for an extension. This buys the accountant time. He then completes the corporate tax returns by September. Your personal returns are then completed by October. What’s the problem with this nonsense? By the time the old year’s tax returns are completed, the new year is almost over and the nonsense begins all over again.

If this scenario seems all too familiar, it means, you have no idea what is presently happening in your business. Your accountant has even less of an idea, as she is always working on the prior year. In this economy, if you don’t have a score card of where you are at all times, you will be out of business! This is because you won’t be able to adapt to the changes necessary. Don’t make this mistake. Make sure you have an accountant or CPA who will not only get your returns done in a timely manner, but who will advise you about what changes you need to be making in order to keep the money in your business.

Exit strategies – It may seem crazy to think about this, but I want you to create this now, so if you should die – your wife isn’t left with a monster of a paperwork mess to untangle. Whether you’re planning on staying in the business for twenty more years, or six months, it’s a good idea to always ‘think to the end’ and put in a strategy to sell or exit. Why? Because businesses that can run without the business owner, are valued much higher than businesses where the business owners do everything. In every business, you have to have an end game. Since we don’t live forever, people should develop business exit strategies.

Running a business just to earn a living really doesn’t make any sense. Besides all the obviously benefits of being an entrepreneur – more time, being your own boss, having financial freedom – the biggest mistake that entrepreneur’s make, is that they don’t plan for an exit strategy.

The exit strategy is not that complicated. The strategy becomes a wish list you put on paper -What if you leave in 3 years? 5 years?, and 10 years? If you want to sell the business, try to find the buyer now. You could have different dates that the business could be ‘valued’ at and plans for your exit for each of those. The first question you should ask is, “If I drop dead today, what are you going to buy my business for? Everything else could be worked out if you have enough time.

Protection -Where does life insurance come in? Depending on the type of business you have, there are many different variables you have to think about. This is the case where you need a professional to guide you in this matter.

Investing in your company -A question I get a lot: Should I put my own money into the business in order to bail it out. The answer is actually quite simple: What is the plan to pay the money back? If it doesn’t look like you will be paid back in the near future, DO NOT PUT THE MONEY IN.

One of the biggest mistakes I see being made: I see business owners drawing money out of their business based on their personal life style.

READ THIS NEXT SENTENCE VERY CAREFULLY, REREAD OFTEN -

“It’s the business that determines your lifestyle. It is NOT the lifestyle that dictates the distributions of the business”.

Distributions should be made based on the profitability of the business a great rule of thumb is what I call the 50% rule. Leave 50% of the profits of the business to grow the business. Take the other 50%. In order to accomplish this, you need accurate books and records.