1099 MISC – Reporting Requirements & How-to in QuickBooks

On December 15th the Senate passed the 2010 Tax Relief Act and extended the Bush-era tax cuts. However, the House still needs to knock heads for approval. So, I am holding off on presenting the effects of the Tax Relief Act until it has “officially” passed.


Since I get a lot of calls in January about 1099’s MISC, I decided that this would be a great topic for year end. For those who don’t know, a 1099 MISC is a tax form used to report miscellaneous income, including income earned as an independent contractor.

To begin the process, you must obtain a completed W9 from the individual who will be receiving the income. Ensure that the name is the individual’s name, not the business name. The business name has a separate line. However, the business would be correct for a partnership, limited liability company or corporation.

Who gets a 1099? Individuals, partnerships and most limited liability companies would be candidates if they meet the income criteria. S-Corporations and C-Corporations do not generally receive 1099s.

Due dates for the 1099-Misc are:

To the Recipient – File Copy B is due January 31. This due date is extended if you are reporting payments in boxes 8 or 14.

To the IRS – File Copy A is due February 28. If you file electronically, the due date is March 31. To file electronically you must have the appropriate software.

You can order 1099 forms from the IRS and they are FREE!

Box 1 – Rents $600.00 or More:

For real estate rentals paid for office space, machine rentals.

Box 2 – Royalties $10 or More:

For gross royalty payments made, which are usage-based payments made by the Licensee to the Licensor for use of intangible property (music, intellectual property, franchise payments).

Box 3 – Other Income $600 or More:

For award money or merchandise (report at fair market value), sweepstakes prizes or game show winnings received. This would not be used for reporting gambling winnings; a W2G is the form used to report those winnings.

Other Income would also include monies received for participating in medical research studies, punitive damages. There is actually a comprehensive list on the IRS web site..

DO NOT include in box three payments made for services received. This is considered non-employee compensation and would be reported in box 7.

Box 7 – Nonemployee Compensation $600 or more

For someone who is not your employee that you paid for services in the course of your business. This non-employee can be a sole proprietor, a partnership, a limited liability company (LLC) or an attorney. Examples of payments made that would be subject to non-employee compensation reporting would include:

Professional Services: This is your independent contractor: accountants, architects, consultants, computer guy/gal, cleaning person, coach, etc.

Travel reimbursements: Paid to an independent contractor (IC) and IC did not report the expenses under an accountable plan. An accountable plan is when an expense report is completed and receipts are presented for reimbursement.

Bartering of services between individuals in the course of their business: For example, I hired my client, ABC Flooring to install a new floor in my office. In exchange I will prepare his/her tax return. No money is exchanged, but this still holds as a reportable event.

Fringe Benefits to ICs: This may include a company car, health insurance, life insurance, free services, etc.

Legal Services: All attorney fees are reported regardless if the attorney is a corporation.

I only listed a few of the many reasons why you would report non-employee compensation on a 1099. Here is a complete list.

Box 14 – Gross Proceeds Paid to an Attorney

Report all gross proceeds made to an attorney during the course of your business even if the attorney is a corporation. Gross proceeds are different than fees in that gross proceeds are paid when a lawyer wins a settlement (the attorney’s cut).
As you can see, I did not cover every box on the 1099. For comprehensive instructions, visit the IRS web site.

Beth Bockenhauer is the owner of Beth Bockenhauer, CPA, a boutique accounting and CPA practice based in southern California. She started her career with five years of military service. She then worked for ten years as a small business owner, and holds a Bachelor of Science degree in accounting. Beth has worked in public accounting for the past seven years. For more information, visit www.bethbcpa.com

The I's Have It: Inform Referral Sources

One of the things that happens when people establish a referral network is that they don’t receive enough referrals. These people often believe that others aren’t doing their job. Sorry, but the truth is that if your referral network is not working the way you want or expect it to, it's your responsibility.

Have you informed people in your network about all of the products or services you have available? Have you provided them with your business cards, brochures, and other information? What are you doing to compel them to refer you? Your referral sources need to be informed so that they may educate those in their networks and refer the perfect prospects for your business.

Now, here’s the curve ball… Referral marketing is a two-way street. Do you make sure your referral sources know that you are interested in what they do, rather than just worry about how interested they are in what you do? Are you helping them in the same way you want them to help you? Are you really? Are you genuinely interested in their business? Do you know how to properly refer them? Are you referring them? Are you following up with each other on a regular basis?

It is your responsibility to inform your referral sources on what a good referral is for you and to make sure that you are trained on how to refer them. Responsibility is something people are sometimes reluctant to take. You're responsible for the actions other people take on your behalf. It's up to you to choose the right people, to set the tone for your business, to educate your referral sources about what you do, to demonstrate competence and integrity, and to maintain the effectiveness and strength of your referral relationships.

Only those individuals who recognize that they have to take responsibility are the ones who make this process work for them. What are you doing to properly inform and train your referral sources?

Laura Bruno is a trainer, speaker, referral expert, and a Certified Professional Behavioral Analyst. She is the owner of the Referral Institute SoCal. She can be reached at 951-699-2558 or visit http://www.referralinstitutesocal.com/

Let's Meet & Mix at NAWBO-IE's Free Fashion Show and Mixer...Dec. 7th

KSGN 89.7 Hosts Christmas Concert

Celebrate the Holidays with KSGN...

Sunday, November 28, 2010

KSGN is a NAWBO-IE Corporate Sponsor.

Inspired to Help “Aged-Out” Foster Youth

When young people in foster care reach age 18, they suddenly find themselves on their own, without a home or a support system. These teens are “aging out” of foster care and typically have to fend for themselves. Often they have nowhere to go.

But in the Inland Empire, many are finding support and resources at Inspire Life Skills Training, Inc., a non-profit organization that provides housing assistance, life skills training, and education and employment support for youth aging-out of the foster care system.

Camplin Sets Up to Make a Difference

Inspire was founded by Kristi Camplin in 2005. When a social worker she knew expressed frustration with the lack of services for foster care youth who age out of the system, Camplin pondered about how she could help.

“I wanted to just be a mentor at first and then I realized that 70% of foster kids are homeless,” Camplin said. “I knew I had to do something about it.”

Armed with a degree in psychology, a background in sales and years of youth ministry experience, Camplin was ready to make a difference. She founded the organization on a shoestring budget of a mere $7,000. But with hard work and diligence Inspire soon had its first house, a safe home where program participants could live. Every year since then the organization has been able to obtain another house. Today, Inspire has four different houses; two for girls and two for boys. Currently eighteen youth are in the program.

Staggering Statistics

According to a new study from Chapin Hall, a policy research center at the University of Chicago, young adults who age out of foster care have higher rates of unemployment, homelessness and higher risk of being involved in criminal activity compared to their peers. Researchers tracked over 600 youth in the Midwest that aged out of foster care and the outcomes were dismal. At ages 23 and 24, less than half were employed. Approximately 25% were homeless. Nearly 60% were convicted of a crime and only six out of 100 completed a community college degree.

Inspire, based in Corona, is helping to break the cycle and improve these numbers in the Inland Empire with its unique program.

“Our program is education focused and no other program for aged-out foster kids has an education focus,” said Camplin. “We require that they go to school full-time and work part time. They must also go to professional counseling and meet with a mentor regularly.”

New Bill Passes in California: On the Right Track

Although the Chapin Hall study’s data is disheartening, the report does suggest that extending foster care until age 21 may be associated with better outcomes, at least in some domains.

In California, Gov. Schwarzenegger recently signed a bill (AB-12) extending foster-care support to young adults between the ages of 18 and 21. In a press release, Schwarzenegger said, the benefits will “ensure our foster youth have access to important resources as they transition into adulthood."

While the bill is certainly a step in the right direction, it will take some time to implement.

“The way I understand it, 2012 is when the age-out age will increase to 19,” Camplin said. “When it happens, I think for a lot of kids it will be great, especially for kids who are in foster homes and have been there a while. But the kids I get are the ones who have gone from home to home or live in remote areas where care and resources are not available.”

Camplin’s Inspire program has not only provided necessary resources and life skills training, but has been successful with many participants graduating from college, but the mission continues.

Inspire Life Skills Training Inc. is a NAWBO-IE affiliate organization. Inspire is completely privately funded, which means it receives no government contracts. On Dec. 7, 2010 NAWBO-IE is hosting a mixer at Casa de Salsa Mexican Restaurant in Claremont and proceeds from the event will be donated to Inspire.

Joan Burke Stanford is the owner of Jazzy Pen Communications. With a journalism background, she has more than 15 years of experience writing and editing for a variety of companies and organizations. Visit http://www.jazzypen.com/ for more information.

How to Use Food and Nutrition to Succeed in 2011

Often times we underestimate the power food and nutrition have on our business success. Would you be willing to pay closer attention and work harder on your nutritional needs if you know that food and nutrition can actually help you reach your goals and succeed in 2011?

Would you agree that when you start off the day with a well-balanced, nutritious meal you set the tone for your day? Just by eating, you are able to jump start your metabolism and begin your day with fuel in your system. The appropriate food in your body translates into the energy you need to think, create and move forward with your day. You will surely be able to focus and concentrate on the items you need to accomplish. A well fed mind and body paves the way for clear thinking and decision making. In a nut shell, when you eat the right foods, at the right times, systematically throughout the day, you’re giving your mind, body and soul what it needs. You are taking pride in yourself and nourishing the one person you need by your side in order to move your life to the next level of excellence.

Eating well gives you the energy, confidence, focus, clarity and the positive attitude needed to get from where you are to where you desire to be. You will become unstoppable in the New Year. Try it out; test it for yourself. For the next five days start your day with 4 egg whites, a bowl of oat meal with flax seeds and fruit, sliced tomatoes, a liter of water, your daily multivitamin and an antioxidant and see what happens. Not only will you become better and begin to reach all of your personal and professional goals, but the people around you will also become better.

Robin Allen is a Certified Nutrition Specialist and the co-founder of Necessary Nutrition, LLC. Robin and the Necessary Nutrition Academy have helped hundreds of people increase their energy, confidence and overall well being with their nutrition program. Visit www.Necessary-Nutrition.com for additional information on Robin and the Necessary Nutrition Academy.

How to Use Food and Nutrition to Succeed in 2011

Often times we underestimate the power food and nutrition have on our business success. Would you be willing to pay closer attention and work harder on your nutritional needs if you know that food and nutrition can actually help you reach your goals and succeed in 2011?

Would you agree that when you start off the day with a well-balanced, nutritious meal you set the tone for your day? Just by eating, you are able to jump start your metabolism and begin your day with fuel in your system. The appropriate food in your body translates into the energy you need to think, create and move forward with your day. You will surely be able to focus and concentrate on the items you need to accomplish. A well fed mind and body paves the way for clear thinking and decision making. In a nut shell, when you eat the right foods, at the right times, systematically throughout the day, you’re giving your mind, body and soul what it needs. You are taking pride in yourself and nourishing the one person you need by your side in order to move your life to the next level of excellence.

Eating well gives you the energy, confidence, focus, clarity and the positive attitude needed to get from where you are to where you desire to be. You will become unstoppable in the New Year. Try it out; test it for yourself. For the next five days start your day with 4 egg whites, a bowl of oat meal with flax seeds and fruit, sliced tomatoes, a liter of water, your daily multivitamin and an antioxidant and see what happens. Not only will you become better and begin to reach all of your personal and professional goals, but the people around you will also become better.

Robin Allen is a Certified Nutrition Specialist and the co-founder of Necessary Nutrition, LLC. Robin and the Necessary Nutrition Academy have helped hundreds of people increase their energy, confidence and overall well being with their nutrition program. Visit www.Necessary-Nutrition.com for additional information on Robin and the Necessary Nutrition Academy.

Top 5 Essentials for Closing Out Your Fiscal Year

It’s that time of the year again. Are you prepared to close out 2010? Do you have your financial records ready for your CPA or tax preparer? If your answer is a resounding NO, then keep reading.

You told yourself after last year’s year-end fiasco that you wouldn’t let that happen again, but the next thing you know, it’s December 31st. Then it’s March 15th and your CPA or tax professional is screaming for your financial records. You’re stressed and end up having to file for extensions, which results in penalties and interest. Take charge this year! Break the cycle and take control by using the following “5 Essentials for Closing Out Your Fiscal Year.”

1.) Make an appointment with your CPA or tax preparer, and meet with your in-house accounting staff. Your CPA or tax preparer should provide you with a list of items that they will need to start working on your taxes. The sooner you and your accounting team can get started, the easier your year-end closing process will be.

2.) Organize your financial records, preferably by month. Make sure you have back-up for all transactions. Your files should be organized with financial reports on top, followed by bank and other statements with reconciliation reports, and your transaction back-up (check stubs, receipts, deposit slips, etc) attached.

3.) Do an inventory of your equipment and other assets. If any items were added or removed, your CPA or tax professional will need to know so they can properly account for them.

4.) De-clutter. Toss any items marked for follow-up that are not significant to your accounting. They are most likely expired or no longer relevant. If you are not sure, place them in a separate file to be reviewed by your CPA or tax preparer.

5.) Review your current accounting system with your team and make adjustments to put in place for next year. The point of this is to avoid the stress for next year by planning now; you will eliminate the hassle and create a system that puts you in control of your business.

Not sure where to start? Management Consultants of America, can help. We specialize in systems development. We can take your drawers full of financial records and prepare them for year end. Call (866) 380-0745 now for your free consultation or visit us at www.bookkeepingonsteroids.com

 

LaVonne Shields

QuickBooks Expert and Consultant, LaVonne Shields has over 10 years of experience working in several industries (including banking, real estate, construction and non-profit). Her specialized training and consulting services help to provide peace of mind and relieve stress when it comes to bookkeeping and accounting all while improving the bottom line. She is the author of “Bookkeeping on Steroids,” and an instructor for the Inland Empire Women’s Business Center in San Bernardino.

 

Customer Service Gives Little Guys Edge over Big Companies

“Economic recovery will be powered by small businesses. Period," wrote Tina Loza, current president of the local chapter of the National Association of Women Business Owners (NAWBO), upon returning from the National Conference in Washington, D.C. She said, "The message during the conference was clear and coming at us from all sources, Nancy Pelosi, Valerie Jarrett, and Karen Mills. They all had one clear, unwavering message...." Small businesses are the answer.

But small business owners need to start believing it and acting like it!
 
Recently after conducting a workshop on the topic of Small Business Marketing, a young woman approached me about a business she wanted to start. I was encouraging her with statistics and information, when she let out a big sigh and said, " Yes, but who will want to do business with my little company, when they can go to the big established company in town?" With a mixture of surprise and mild scolding, I warmly asked, "Girlfriend, have you not heard anything I've said in the last two hours?" She muttered, "I know, I know."

I pondered her comments as I drove home that night. It's one thing for business owners to hear all the "shoulds" of marketing techniques - the importance of having a plan, conducting research, formulating a target audience, determining your niche and value, and serving your customers through knowing their expectations. But it's quite another to actually apply and live it.

Let me enlighten you with the grim statistics: 50 percent of small businesses fail within the first five years. That's not even counting the hundreds more that never even get off the ground. Several reasons contribute to their failure. Lack of planning is a major factor. And business owners don't fully grasp that they have a major competitive advantage: their small size. This becomes the basis for providing personalized customer service.

Small businesses do themselves and their businesses a disservice by not knowing enough about their customers and what those customers expect. A few years ago, Bain & Company conducted a study of 382 companies, revealing some interesting findings: 80 percent of the companies surveyed believed their customer service was already exceptional. And did their customers agree? In fact, only 8 percent of these same companies' customers rated their customer service experiences as "superior." It sounds like someone is out of touch --and it's not the customer.

Small businesses have the opportunity to learn from this study to leverage their competitive advantage. Here's how:

• Understand that everything you do as a business owner shows your commitment to customer service, from answering the phone to delivering the invoice.
• Learn what customers want; learn what they expect. Remember that a basic, human need is to feel important and respected. How can you deliver this for your customer --even in a small way? A handwritten Thank You card produces a big impact.
• Apply the "WIIFM" concept: know that your customers are asking "What's In It For Me if I continue to do business here?" Ask yourself, "Would I want to do business here?"
• Deliver consistency of product and service. Train your employees. Use yourself as the model.
• Create systems and standards so that excellent customer service becomes the norm. Customer loyalty is the reward.
• Document great customer service moments. Use these to inspire your staff.
• Embrace customer service. Adopt these practices and begin building a stronger reputation with your customers. Those who provide world-class customer service will stand out from the crowd.
• Be a part of jumpstarting the new economic recovery.

 

Carolyn Ortman is owner of CKO Marketing & Training Group and is a 17-year member and past president of the American Marketing Association - Inland Empire. She can be reached at 951-784-9174 or www.ckogroup.com. Carolyn also teaches Customer Service Management at UC Riverside Extension.

Events Manager vs. Do It Yourself

When there is a need for a significant event that relates to your business relations such as promoting products, services, recognitions, fundraising, and even supporting a foundation cause, the question will inevitably arise: Do I hire an event manager, use an assistant or do it myself?

Deciding on whether to hire an event manager versus doing it yourself requires critical thinking before making a decision.

Doing It Yourself

Due to economic reasons, many companies are looking at areas where they can cut costs and some executives believe they can put together an event themselves and eliminate some costs. Sure, you can choose a venue and get that secured, but what about all of the other important details? Did you get the necessary permits and approvals? You can search the Yellow Pages for vendors such as caterers, but can the resources advertising in the Yellow Pages capture your vision and purpose of the event? Will the service provided produce an event that saves time and makes the most of your money invested?

Getting Assistance from an Assistant

Assigning assistants and volunteers to handle social gatherings, whether large or small, is an option. However, managing an event is typically difficult for these individuals because they may lack the knowledge, skills and ability to succeed in producing an event within the budget. Often these individuals are assigned the task to plan an event and they do just that--they plan. They use unknown resources without knowing the vendor’s track record or their performance of previous events they serviced. Businesses are looking for an event to be produced effectively and efficient. Many times due to the lack of skills and experienced executive assistants end up exceeding the budget or under estimating services and supplies. These deficiencies ultimately can cause a stressful atmosphere that leaves a negative experience that is not memorable.

Outsourcing to an Event Manager

First, it is important to recognize the significant difference between an event manager and an event planner. Managers execute and planners plan. Event managers specialize in the execution and management of an event from beginning to end. Second, be cognizant of the fact that event managers are experienced professionals. Assets to their clients are their organizational skills and keen attention to minute details involved for producing large and small events. Effective communications skill with the key ability to listen for the client’s needs is extremely valuable. Certification in the field of event managing is a plus, but it is not always required. Other positive attributes include being sociable, friendly, efficient and creative.

Business clients and individuals use event managers for various reasons out of both desire and necessity. Definitely time and money investing is the main reason to have a professional event manager. The first reason is the simplicity of using one point person to organize, execute and implement an event. Planning large detail-oriented event needs assistance in managing from the beginning to the end is the second reason.

When weighing the pro and cons of hiring an event manager or doing it yourself, keep in mind that your company reputation could be at stake. Attendees remember excellent event as well as really bad events. So, you can assign an assistant or recruit volunteers or you can even use the yellow pages for your next event. But ask yourself, can these individuals and the yellow page service provider capture my vision and produce a memorable event? Can the resources, people and companies be trusted to use your time and make the most of your money invested?

Lynnette Coachman is a special event consultant and owner of enTRUST Event Management & Design. She has vast experience in helping organizations plan, organize the details and meticulously execute from beginning to end. enTRUST Management captures the client’s vision of an event, offers trusted resources, applies dedicated time and energy, while making the most of the client’s money. Need an event manager for your next event? Contact Lynnette at lynncoach@verizon.net

Revolutionary Nutrition Program Designed to Combat Illness, Disease and Obesity

Riverside-based company Necessary Nutrition has created a revolutionary nutrition program designed to combat illness, disease, and fight obesity. The Necessary Nutrition University and Nutrition Program is a comprehensive program that takes a holistic approach to inspire lasting change.

Necessary Nutrition has collaborated with skilled professionals in the health, wellness and personal development industry to offer a program that integrates nutrition education, personal development and an action plan. The personal development side focuses on the discovery and management of self.

The Necessary Nutrition University begins with a full day interactive live seminar and continues for at least six weeks thereafter. After the seminar participants will begin their nutrition and accountability program. Each participant receives six weeks of custom nutrition plans, an accountability coach and six additional educational classes delivered online. In addition to the education and nutrition plans, attendees receive “Necessary Recipes,” a recipe book featuring healthy alternatives for common foods.

“The state of American health is outrageous and becoming more deadly as the days go by,” says Robin De-Ivy, founder of Necessary Nutrition. “If we remain on the current path healthcare costs will continue to skyrocket, death rates will rise and disability from mental and physical illness will become immeasurable. This program has been designed to address the many reasons why the majority of Americans are overweight.”

The next kick-off for the six week program will be Saturday, September 25th. During the actual seminar participants will receive four full meals, a live cooking demonstration, fitness class, education sessions and course materials.

According to one of the participants Kristi Cooke, “this program has had a significant impact on my weight battle. They addressed my emotional eating and helped me to uncover roadblocks I didn’t realize were holding me back. I have learned so much and by following the nutrition plan my weight is down, my sleeping patterns have improved and my energy level has increased.”

For additional information on the Necessary Nutrition University and Nutrition Program visit www.NessyNutri.com or call 1-866- 320-4164.

Necessary Nutrition, LLC was founded by Certified Nutrition Specialist, Robin De-Ivy Allen. Since 2007 Robin and Necessary Nutrition have helped hundreds of people drop more than 5000 pounds using food and education as their weapon.

Corporate Sponsor Southern Calif. Edison Presents Upcoming Workshop

NAWBO-IE Corporate Sponsor, Southern California Edison, is hosting a high-value workshop as part of its 2010 Business Edge Workshop Series in the Inland Empire

How to Prepare a Winning Marketing Plan

Speaker: Michael J. Scotto

A "living" marketing plan is an important management tool of every business owner.

The workshop will cover:

• A "how-to" approach to a sound marketing plan
• Understanding the marketing "process" to effectively market any business
• Tips and techniques on building a competitive edge
• Establishing objectives, strategies, tactics...and more

Date: Wednesday, September 1, 2010

Time: 5:30 PM to 9:30 PM

Cost: No Charge--Dinner Provided

Location: Doubletree Hotel Ontario

222 N. Vineyard Avenue

Ontario, CA 91764

RSVP by August 30, 2010

To Supplier Diversity & Development at supplierdiversitydevelopment@sce.com or call 800-275-4962

Accessing Capital in a Tight Credit Market

Many business owners and prospective business owners are discussing how difficult it is to access capital in this market. The fact is the credit market is tighter than it has been in a number of years. Banks are concerned about regulators; therefore, they are requiring more documentation and standards are tightening. However, accessing capital for growth and expansion, for commercial real estate purchases and for business acquisitions is achievable. Consider the following to position your business for accessing capital:

• Know Your Financial Health – Know what’s coming into your business (revenue) versus what you are spending (expenses). No longer can that responsibility be solely delegated to a bookkeeper. Business owners must be clear on their company’s financial health and projections for the future. A healthy balance sheet and income statement that shows positive trends or clear adjustments for sales shortfalls is essential. In this market, don’t hesitate to make adjustments that will improve your bottom line. Waiting too long could negatively impact efforts to access capital.
• Be Attentive to Accounts Receivables (A/R) – Business owners often obtain credit from suppliers and provide credit to customers. Today, CEOs must be attentive to the accounts receivable cycle of their customers. When A/R has not been received in 15 days in a 30-day cycle, a call should be made to the customer. Reducing the A/R cycle improves a business’s cash flow, which is essential in accessing capital.
• Explore SBA Resources – The U.S. Small Business Administration (SBA) has several programs to assist small businesses in working with banks. SBA provides a guaranty program and a direct lending program. The guaranty program provides a 75-85 percent guarantee to banks for providing capital to small businesses and the direct lending program funds up to 40 percent of project costs for real estate, equipment or tenant and leasehold improvements. In this market, this proves to be a valuable resource to lessen the credit risk to banks.
• Take Advantage of the Market – Commercial and industrial real estate prices are down 25 – 30 percent. If you currently rent space, now is the time to explore being an “owner” versus a “renter.” Real estate owners are able to reduce their tax liability and could create additional income with rental space. The SBA 504 loan program allows owners to rent up to 49 percent of their real estate; requires only 10 percent down versus 30-40 percent conventionally, provides low and fixed interest rates; and provides longer terms so that monthly payments are manageable.

Business owners can access capital in today’s economy and there are numerous resources available to help. To find out more information about SBA programs and other resources for small businesses, contact AmPac Tri State CDC, a non-profit certified SBA lender at (909) 915-1706 or visit our website at http://www.tristatecdc.com/.

 

Peoples Choice Staffing, Inc. Escapes the Recession

Corona, CA – July 6, 2010 – Despite the nation's economic downfall, Peoples Choice Staffing, Inc. has continually exceeded projected sales goals on an average of 30-40% annually and is in process of moving toward national expansion.

The growth pattern for 2010 of Peoples Choice Staffing, Inc. appears to be on target as YTD revenues are trending toward tripling that of 2009. In addition, PCS opened a second company that serves as a Managed Service Provider, Choice Workforce Solutions, LLC that is estimated to produce an additional $65 million in revenue on an annual basis.

"There might be a recession, but we refuse to participate,” says Denise Peoples, President and CEO of Peoples Choice Staffing, Inc. “We wouldn’t allow our employees to buy into a recession mentality; we just knew we had to work three times harder and smarter.” PCS Chairman & COO Wendell Peoples continues, “Our management and employees are collectively committed to represent this company brand in everything we do."

Peoples Choice Staffing focuses on developing mutually beneficial partnerships with handpicked companies that drive results and heighten client interest. Previously this strategy was focused on accommodating clients just in Southern California but with current growth into five states and continued expansion moving across the United States, PCS in on the verge of providing client benefits on a national basis.

Denise Peoples, President and CEO of Peoples Choice Staffing, Inc., brings more than 22 years of knowledge and in-depth experience in the staffing industry, making her one of the leading experts in Human Capital Management. She is a member of NAWBO-IE and serves on the Board as Mixers Chair.

Contact:
Denise Peoples, President and CEO
Peoples Choice Staffing, Inc.
1269 W. Pomona Road, Suite 107
Corona, CA 92882
Ph: (951)735-0550

Blogging: How It Can Benefit Your Business

Did you know that 346 million people worldwide read blogs? Imagine how many of these people could be clients or customers of your business. It sounds cliché, but the possibilities with blogging are endless.

A blog, originally known as a “weblog” is merely a web page made up of short, frequently updated entries or posts. Many blogs are personal, informal and set up like an online journal. A business blog, however, can be a low-cost, highly effective marketing tool for any business.

According to Holly Suso, the founder of MymompreneurTM and an active blogger who offers a blogging boot camp workshop, there are three key reasons why businesses should blog: improve visibility, demonstrate expertise, and increase profit.

Improve Visibility
“In terms of visibility, blogging allows you to meet your audience, customers, and colleagues where they are,” said Suso. To put it another way, a business blog will help you and your company be found online.

According to new research released from The Nielsen Company, Americans spend a third of their online time (36 percent) communicating and networking across social networks, blogs, personal email and instant messaging. That means your potential clients are definitely online and they are reading blogs, so why not take the opportunity to engage with them?

Business owners often will say that they are already engaging with customers through email marketing with a newsletter. While a newsletter can indeed be a valuable source of information, a blog does not have to replace it, but rather it can work in conjunction with it. You can use the newsletter to drive traffic to your blog.

Demonstrate Expertise
With a business blog you can offer knowledge, expertise and experience via quality content that will make you a resource your audience will value and follow.

“We've all heard that content is King. Blogging reinforces you as the expert in an authentic, credible way,” said Carolyn Ortman of CKO Marketing and Training Group. “Providing in-depth commentary on a blog about what you stand for in the marketplace is an excellent way for others to get to know you and your company, build your reputation and enhance your brand.”

Note that providing quality content is the key here. You want to be seen as an expert or a company that offers valuable information (oh, and you just so happen to provide a product, service or solution). You do not want to be seen as a pushy salesperson.

Beyond sharing your expertise, it’s also important to show your audience that you care. Remember, one of the key benefits of a blog is that it is interactive, meaning it allows for two-way communication between you and the readers. Once you create a post, readers will read it and often they will post comments back to you, asking questions and sharing insights.

Tip: Make sure you respond to blog comments. If you’re not visiting your blog, why should anyone else?

Increase Profit
As you establish a relationship with the readers of your blog and they begin to see you as an industry expert, you will see a boost in sales and subscriptions.
According to a Hubspot report, blogging can have a very positive effect on your company’s branding and growth. Reportedly, companies with blogs gathered 68% more leads than companies without blogs.

“Your blog can be used as an effective lead capture tool. Blogs can offer incentives such as eBooks, coupons, specials and information products in exchange for leaving contact information on email forms,” Suso added. “Data can then be compiled and segmented for sales usage via newsletters, upsales, and evites, for example.”

People are likely to do business with you if they like what you have to say, enjoy reading your ideas and can see your passion and drive within your words (or video) on your blog.

Moving up the Ranks
Another key benefit to blogging is that blogs are search engine friendly. If you’re like most business owners, you’d like to achieve high rankings among the search engine giants like Google and Yahoo and thereby see a jump in the number of people who visit your company website. Blogs are not only frequently updated but often contain keyword-rich content, which is a must for search engine optimization.

While monetary costs associated with blogging are minimal, your main investment is time. This could be a huge drawback because as any business owner knows, time is a precious commodity we all wish we had more of. In an interview with Technorati, a blog search engine, Fred Wilson the managing partner of two venture capital firms and a well known blogger at AVC.com said, “It's not easy for an entrepreneur to find the time to blog. But for those who do it, it is a great tool to communicate with the various stakeholders in their business and build a reputation for thought leadership.”


Joan Burke Stanford is the owner of Jazzy Pen Communications. With a journalism background, she has more than 15 years of experience writing and editing for a variety of companies and publications. Visit http://www.jazzypen.com/ for more information.

Get in Balance with Your Balance Sheet

Business owners often say they want to have a cash reserve, collect on receivables sooner, pay down accounts payable, and pay off credit cards. Does this sound familiar? If so, then my question is: Why does everyone spend so much time obsessing over the Profit and Loss, aka P&L?

Don’t get me wrong. I too spend much of my time analyzing my company’s P&L. I compare my prior year’s earnings with this year’s earnings. I make sure my budget-to-actual is in line. I compare my earnings and direct expenses with my company’s projections. However, if I truly want to know how my business is doing, I spend time with my balance sheet.

I believe the answer to my first question, why so many business owners only spend time with the P&L, is that they don’t know how to interpret the story of the balance sheet.

A balance sheet is a record of company assets and liabilities. Assets are what your company owns. Liabilities are what your company owes. Equity is what your company has.

3 Ways to Spend Time with Your Balance Sheet

 1. Evaluate your company’s liquidity. How quickly can you turn your company’s assets into cash? Current assets (CA) determine liquidity. Current assets are made up of cash, accounts receivable, and inventory. Cash is the most liquid and inventory is the least.

Take the sum total of your current liabilities (CL) combined with current payments on long-term debt. Current liabilities include accounts payable, credit cards, payroll payable, taxes payable, etc. Calculate your current obligations on long-term debt for the month (car notes, mortgage, and equipment finance loans) and add to your current liabilities.

Now that you know how much you have in current assets and how much you owe in current liabilities, divide current assets by current liabilities. Coverage of assets to liabilities should be at least 1.25. Example: Current Assets = $1,000 Current Liabilities = $460. CA/CL = 2.17. If assets to liabilities is less than 1, there could be a cash-flow problem.

Basically, if a company generates more liquid assets than operational costs, it can give the excess to the shareholders/owners. At some point in the future, the company may end its operations. It will pay off all liabilities and what remains is tangible shareholder/owner value. This is the return on invested capital/sweat equity generated by the company’s operations.

This step also identifies if the company can fund its own growth, or if debt will need to be issued to the company to support growth.

2. Determine whether liquid assets are increasing or decreasing. How about your payables? From one month to the next review the change in cash, accounts receivables, inventory, payables and credit cards.



**Note: The chart above is a very basic analysis, but hopefully you can start thinking about the relationships between accounts.

3. Employ tactics to control cash. Going back to the first sentence of this article—businesses want to have a cash reserve, collect on receivables sooner, pay down AP, and hopefully pay off the credit cards. Are these goals attainable? Yes! Let’s start with the need to have a cash reserve.

As a business owner, what are you doing to control cash? Is there a budget in place to control expenses? Are expenses realistic? For example, you don’t lease a luxury auto that the company cannot afford. Is the company collecting AR in a timely manner to pay for operational costs? Do you maintain credit card debt and have a plan in place to pay off the debt? Do you separate expenses for your life from your business? If you answered yes to any of the above questions, you are on your way to having a cash reserve and getting in balance with your balance sheet.

Beth Bockenhauer started her career with five years of military service. She then worked for ten years as a small business owner, and holds a Bachelor of Science degree in accounting. Beth has worked in public accounting for the past seven years. Her company, Beth Bockenhauer, CPA is dedicated to helping business owners establish beneficial financial systems and processes, and to wisely manage growth as well as budgets.

Member Event You Don't Want to Miss

New Location

Join us for a celebration of Peoples Choice Staffing's

Grand Opening

August 11, 2010

4:30-6:30 pm

Enjoy a classy afternoon featuring live jazz, food and wine.

A Coach purse will be raffled off along with other great prizes!

Peoples Choice Staffing, Inc.

1269 W. Pomona Rd. Suite 107

Corona, CA 92882

(951) 735-0550

www.peopleschoicestaffing.com

Chapter President Delivers Inspiring Speech

The following is the installation speech from Tina Loza, NAWBO-IE President for the 2010-2011 term:

Tina Loza,
NAWBO-IE President

I was working on this little speech in the Ronald Reagan Airport in Virginia after having spent a week in our nation’s capital for the NAWBO National Conference. The message during the conference was clear and coming at us from all sources; Nancy Pelosi, Valerie Jarrett, and Karen Mills all had one clear, unwavering message: Economic recovery will be powered by small businesses. Period. We are the answer to this economic crisis. You are the answer to this economic turmoil.

And although I was surrounded by influential, interesting, and smart women all week, frankly, I have to say that I was most energized by actually being in D.C. I had never been to D.C. before and I feel that the city was so magical, empowering, and energizing and that most of all has helped me solidify what I want for our group this year. I want you to feel that you are knowledgeable and informed so that you can run your business instead of your business running you. I want you to feel empowered and energized.

As most of you know, I am an attorney and started my practice with not even one client in May, five years ago. I came to my first NAWBO meeting that summer five years ago and have been coming ever since (except for a small absence while on hospital bed rest that brought me my wonderful twin boys). I came to my first NAWBO meeting with my business cards printed on my home printer on Avery card stock. I was very busy pretending to busy, wondering how and why my husband convinced me that starting a practice, on my own, would be a good idea.

I waited by the phone hoping it would ring. I went to event after event, shaking hands, exchanging cards, taking a mournful, deep breath every time I entered a room filled with people that I did not know. I took and momentarily entertained calls from people who told me that James Cameron stole the plot of the Titanic from them. I swore at Quickbooks. I wondered whether I needed a business license, a CPA, or disability insurance. Not to be boastful in any way, but I am proud that today, I have six other attorneys working with me and we have two assistants. We have approximately 300 active clients. We made it the first five years, we survived, we grew, we made mistakes, we learned, and the bottom line is NAWBO had something to do with that.

Now, in case you did not know after laughing at lawyer jokes all your life, attorneys work on the concept of the billable hour – so, for example, when I am sitting in a waiting room at a doctor’s office, I literally look at my clock and calculate how much money I am not making. I have often considered sending the doctor a bill for my wasted time because usually there is no return on my investment of time at the doctor’s office – they say my flu/cold/etc. is viral, they can’t do anything, and send me on my not so merry, feverish way.

What I want this year, is that each one of you will not leave here wanting to send NAWBO a bill for your time. My aim is to give you a return on your investment of time. That is what I will strive for at each and every meeting and the Board has been and will be tasked to help make this happen.

With that said, this is not a one way street, I encourage and urge you to come here and be active. If you are not on the Board or a Committee, you should consider it. You should attend NAWBO-U and come to our mixers. Hurriedly sitting at a table, avoiding eye contact, and running out the door is not the way to make NAWBO work for you. The value of NAWBO is in these women, your peers. Their knowledge, advice, and business are part of the return on your investment.

Because I often look at each hour as a potential billable hour, I do not want my time to be wasted. Wasted time is time that I could have been investing in work or I could have been spending with kids, my husband, or reading a People magazine while catching up on back episodes of The Good Wife. Is there anyone here uninterested in being profitable and getting a return on your investment of your time? Please raise your hand. OK. Good. We are on the same page.

With that said, we have a theme that will run through every meeting and program this year. This year will be aimed directly at taking you and your business to the next level by giving you the knowledge you need to avoid risk, make good decisions, and operate with intelligence so that you are a profitable and productive person. Every single program will be aimed at you walking out the door with information that you can use.

The breakdown of businesses in this room is essentially (1) emerging business owners, (2) growing business owners, and (3) established business owners. My intention is that each meeting will be tailored this year to the "growing business owner." Emerging business owners will be infused with information on how to step up their game and will be placed in a position of learning what they will need to know to be a success. Growing business owners will be armed with the knowledge to ensure that they will not fail because they did not know any better. Established business owners will gain as they review, re-assess, mentor, aid, and learn as they polish their businesses and perhaps grow new areas of their businesses that have yet to be explored. You will get a return on your investment merely by listening and if you do not, then I will have considered my term a failure. If you are not getting what you need here, tell me. I work for you. For one year, you get an attorney, free of charge.

I also encourage you to attend NAWBO-U. At meetings, we can only provide a short snippet of things you need to grow. NAWBO-U is the charitable, 501(c)(3) arm of NAWBO-IE. NAWBO-U is there to provide you with intensive, longer programs designed to educate and guide you. There is so much power in learning. Even when it’s hard to tear yourself away from your many obligations; it is worth it.

In closing, I am so happy that you have attended this meeting today. I am really excited to be starting this term with a Board that I have been calling the “Dream Team” since the moment Hilda Kennedy signed on as President-Elect. I am humbled by this opportunity and hope to make your membership dues worth every penny. We are looking forward to meeting you all, working with you, helping you, laughing with you, and empowering you so that you can take your business to the next level. Enjoy this beautiful day and remember, you’re the boss. Run your business, don’t let it run you.

Tina Loza is an attorney based in the Inland Empire. Tina and her husband have their own legal practice specializing in intellectual property law (patents, trademarks, copyrights, domain name disputes, etc.). She also has three kids under the age of 3 and lives in Pomona, CA. For more info, go to http://www.lozaip.com/.

Welcome!

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For more information about the National Association of Women Business Owners, please visit www.nawbo.org and for specific information about the Inland Empire chapter, go to www.nawbo-ie.org