Free Seminar: Helping You Grow Your Business

To rsvp, contact Irma Flores (951) 637-1460

You, Your Business and Tax Law Changes

The transition from 2011 to 2013 promises to be a rocky one in the tax world, as we move through the 2012 election year with a extremely partisan debate over the future course of the federal tax system and federal budget in general.  With expiring tax provisions, new health care taxes, and estate taxes back, tax planning is highly advisable.  Here are some of the changes to be on the lookout for:

The New Hire Retention Credit was originally created as an incentive to hire unemployed workers in 2010.  Now it is to help retain the newly-hired employees for whom the hiring exemption was claimed in 2010. The new credit is allowed for such employees who remain an employee for 52 consecutive weeks.  The credit is the lesser of $1,000 or 6.2% of wages paid by the employer to the retained qualified employee.

Congress has repealed the 3% withholding requirement that was scheduled to take effect in 2013 for all payments to government contractors providing property or services to a federal or state/local government agency.  In addition, the new law extends and expands the Work Opportunity Tax Credit (WOTC) applicable to qualified veterans.  This credit applies to any veteran who served for more than 180 days. 

An employer may offer his employees a “simple cafeteria plan” for the years after 12/31/10. Such plans are granted a safe harbor for meeting non-discrimation rules that generally apply to cafeteria plans.  Remember, cafeteria plans are not available to partners, LLC members or sole proprietors.  Nor can they be offered to S corporation shareholders owning over 2% of the company.

Employers will be required to disclose the value of the employee’s health insurance coverage sponsored by the employer, starting with the 2012 W-2s. 

The American Recovery & Reinvestment Act temporarily shorted the built-in gains tax waiting period for corporations that switch from a C to S status to 7 years from 10 years.  The new law, changes the waiting period even further, providing that no BIG tax is owed on built-in-gains recognized in tax years beginning in 2011, if certain provisions are met.

100% bonus depreciation remains in effect for 2011, but drops to 50% in 2012 and is scheduled to disappear altogether in 2013, with an exception for certain “long-lived” property.

Maximum section 179 expense (for fixed assets) drops in 2011 to $139,000 (from $500,000), futher dropping to $25,000 for tax years beginning after 2012. 

For decedents dying in 2010 and 2011, the estate tax applicable exclusion amount is $5 million.  For deaths in 2012, the applicable exclusion is inflation adjusted to $5,120,000, with the maximum estate tax rate being 35%.  In 2013 and beyond, the transfer tax is scheduled to return giving us a top rate of 55% plus 5% for certain estates, and a $1 million exemption.

Phoebe Vausher-Frankeberger is a partner with Frankeberger Vausher + Company, CPAs which is located in Chino Hills.  She can be reached at 909-597-1100 or at PhoebeF@FVCPAs.com

NAWBO-IE Affiliate CREW-IE Hosts Event February 1

Register at www.crew-ie.org

Attention Subcontractors...Event in Victorville 1/12/12

Social Media Sensation: Creating Buzz for Your Bottom Line

Social media is becoming a key ingredient in the marketing recipe for your business. There are opportunities and measurable results for businesses of all sizes, and companies are taking notice. According to current research, social media marketing is set to increase at an annual rate of 34% over the next five years, outpacing all other forms of online marketing. In fact, the expected growth rate for social media marketing is nearly double the average growth rate for all online mediums. There's a reason so many companies are increasing their social media budgets - it's proven to be a very effective tool for reaching customers on a new level. Having an active social media presence can help your bottom line, and there are a host of other benefits:

• Interact with your customers directly: Social media gives you a chance not only to engage your customers one-on-one, but you can also hear what they say about your company online. Make sure you take advantage of that opportunity, but don't react harshly to criticism you may see. Every action you take online will be seen and remembered. A great reputation can be spoiled with one misguided post made in the heat of the moment. Build trust for yourself and your brand by consistently adding valuable content, and handle your following with a PR-friendly voice.

• Own your company's social presence: If you don’t already have your own Twitter and Facebook accounts, get them before someone else does. If people make their first contact with your brand online, be sure that you have control over the message. 

• Look like you're "with it": On Facebook alone, there are over 400 million users spending over 500 billion minutes per month on the site, and those numbers are consistently growing. Your target audience is becoming more and more likely to have social media use as an integral part of their daily lives. Customers are twice as likely to do business with someone they identify with. If you're not on Facebook, your customers might wonder if you really "get it".

• Get great feedback on your business: Better than the results of any survey you could send out to your clients is listening to their reactions online following the release of a new product. With social media, you don't have to solicit for responses - something that can often result in misleading data. If you're engaged in social media forums, you'll have your fingers on the pulse of what is really going on with your business, and how people are reacting to it.

• Establish yourself as an expert in your field: Your company profile is a fantastic opportunity to post about your company's activities, as well as relevant news and trends occurring within your industry. By gaining lots of followers and displaying your expertise, people will begin to identify you as a "guru" in your field. This will ultimately lead to people being more likely to trust you (and therefore do business with you!).

Christine McDannell is Co-Founder and President at Social Starfish. Find out more at www.socialstarfish.com  Christine will be presenting at NAWBO-IE's January 19, 2012 meeting.

NAWBO-IE Hosts Holiday Mixer December 6

Be sure to register at: http://nawboie2011holidaymix.eventbrite.com

Proven Strategies to Build Powerful Business Relationships

Building strong business relationships is an important aspect of any successful business. Yet, it is usually an area that is overlooked or doesn’t receive a lot of attention due to busy schedules. But business relationships can make or break your business, especially in a down or “different” economy. One of my business colleagues recently pointed out that those businesses that survived the recession tended to have deep and committed relationships with their clients and colleagues.

When I think about my business today, I am grateful for the business relationships that I have, and many of them have grown into friendships. When I was working in the corporate world, we were taught to keep a high-level “professional relationship” with clients and colleagues. We didn’t talk about being authentic or really connecting with our clients, we were just taught to close the sale. When I started my own business, I quickly realized that the corporate attitude wasn’t going to sustain me. Plus, being in business can be lonely, so I quickly reached out to others and started to build long-term business relationships.

Recently a business colleague reached out to me through LinkedIn. LinkedIn is a social networking tool that allows you to build your network of business relationships online. I’ve been building my LinkedIn account for years and have just recently passed 500 connections. When this new colleague reached out to me, he pointed out that he was impressed with my 500 connections. While the number was great, I was even more excited about the fact that those 500 connections represent business connections with individuals that I value at a deep level. Unlike Facebook where I have some contacts that I barely know, LinkedIn holds my treasured group of business relationships that have helped me grow my business to where it is today.

Those relationships have lead to incredible synchronicities and opportunities that I only dreamed of when I first started my business. Your relationships are like an invaluable asset that just keeps growing as you invest your time and energy. I have found that there are five key strategies to easily and effortlessly build strong business relationships-with intention.

• One: Connect with Intention. Connecting with intention requires active listening skills and being present in the moment. It is easy to be preoccupied with other things that are going on in our lives, but if you are always thinking about the past or the future, then it is impossible to be present. Others can feel whether or not you are present , and if they feel that you are disconnected, they pull back, stopping a relationship in its tracks. Be present, ask great questions and take the time to get to know someone.
• Two: Be Authentic. Mike Robbins once said, “Be yourself, everyone else is already taken.” In business, there is a lot of pressure to “act a certain way” or model other’s behavior. However, I was listening to a speaker recently and she said that the more authentic she is on stage, the more her sales increase. I have found the same to be true. The more authentic I am, the more “me” that I allow to show up, the more clients and speaking engagements I receive. People sense when we are “faking it” and over time those relationships will fizzle away.
• Three: Deepen the Relationship. Once you have connected with intention and started to get to know someone, what should you do next? Unfortunately, we have short memories, and we can quickly forget about that “great person” we met at our last networking event. The truth is, they probably won’t follow up with you, even if they want to. Why? Because they are really busy and have been swept back into their business the next day. It’s your job to follow up and build the relationship, don’t rely on them to do it. Lead the way and set the next time you will meet. My guess is they will be really grateful that you took the lead. The more that you take the lead to cultivate your business relationships, the faster you will build your network.
• Four: Go Beyond Expectations. These days it’s not enough to just keep your word; that’s a given. The key to building long and lasting business relationships is to go above and beyond expectations. For example, you could invite someone to be a guest at your table for your favorite charity’s annual event. Or, you could offer to assist them with a challenge they are having in their business. There are many ways that you can go beyond expectations, just choose one and deliver!
• Five: Be Committed and Available. In a sea of emails and voice-mails, it can be difficult to stay in touch with new business colleagues. However, the beginning of the relationship is when you really need to stay in touch. If they reach out to you, respond immediately or at least within twenty-four hours (this is a great rule, anyway). Make sure that they know they are a priority to you. The more committed and available you are, the more they will trust you and you will be building a long-term, fruitful business relationship.

Action Item: Reach out to five new business contacts this week and schedule a time to meet with them. Determine who you would like to have long-term business relationships with. Then, take the lead and schedule the next time to meet!

As you are meeting new people, it’s important to recognize and filter those individuals to build a business relationship with. Not everyone is a good fit for you, but you will recognize those individuals who are willing to receive support from you and also willing to give as well. Excellent business relationships are built over time. Invest in them just like you would a 401K – knowing that they take time to build and you might not reap any rewards for a long time. However, there will be those people who will really surprise you. They will invest a lot in you and the growth of your business. And, you might just become great friends!

Sales Expert Ursula Mentjes will transform the way you think about selling so you can reach your goals with less anxiety and less effort! The Founder of Sales Coach Now, Co-Founder of Top Sales Call, as well as an inspirational speaker, bestselling author of Selling with Intention and One Great Goal and a Certified Sales Coach – Ursula specializes in Neuro-Linguistic Programming to help clients double and triple their sales FAST. Ursula also serves as President Elect of NAWBO-CA