Hart & Associates
  • Home
  • Why Us?
    • Reviews
    • Open Positions
  • Client Services
  • Resources
    • Save on QBO Subscriptions!
    • Tax Refund Status
    • Gusto Year End Checklist
    • Videos >
      • Business Taxes >
        • 2019 Business Tax Highlights
        • 7 Ways Small Business Can Save On Tax
        • Taxes for S-Corp Owners
        • The IRS Loves Businesses
      • Personal Taxes >
        • 2019 Tax Highlights
        • Five Yearly Tax Essentials
        • 4 Common Tax Surprises
        • Retirement Can Be Taxing
        • Advance Child Tax Credit Reconciliation - 2022
        • Make the Most of Your Donations
        • Five Great Tax Secrets
        • Renting Your Property Tax Free
        • Ideas to Audit-Proof Your Tax Return
      • The Tax Cuts & Jobs Act >
        • The Tax Cuts & Jobs Act: What You Need to Do Now
        • The Tax Cuts & Jobs Act: Are Itemized Deductions A Thing of the Past?
        • The Tax Cuts & Jobs Act: The New Child Care Tax Credit
      • Tax Topics >
        • Tax Season is Coming!
        • The New World of Deductions: What Everyone Needs to Know
        • Proving Your Deductions
        • How to Fix a Mistake on Your Tax Return
        • How Long Should I Save It?
        • Tax Credit vs Tax Deduction
        • Understanding Effective Tax Rate
        • Understanding Marginal Tax Rate
      • Life Events >
        • Life Events: A New Birth
        • Life Events: Marriage
        • Life Events: Divorce
    • Articles >
      • Accounting & Bookkeeping >
        • How to Get the Most Out of Your Accounting Fees
        • The 10 Biggest Money Leaks in Your Accounting System
      • Business Factors >
        • IRS Rules for Classifying Workers
        • Checklist for a Healthy Cash Flow
        • 12 Ways to Improve Your Business Profits
        • 10 Step Annual Business Check-Up
      • Tax Topics >
        • Tax Guide for Self-Employeds
        • 15 Things Every Tax Payer Should Know
        • Disaster Casualty Losses
        • Travel & Entertainment Deductions
        • Tax Guide - A Deduction Checklist
        • What You Should Know About Tax Audits
    • Newsletters >
      • Newsletters - Monthly Editions >
        • Newsletter - Monthly Edition
      • Newsletters - Quarterly Editions >
        • Newsletter - 2019 Fall/Winter
        • Newsletter - 2019 Spring/Summer
    • How To's >
      • How To - Dext
      • How To - BILL
  • Blog
  • Appointments
    • Client Consultations

How to Keep Your Customers Satisfied

1/27/2016

 
In some industries, service has become a quaint memory. Customers are often reduced to selecting the provider that costs or annoys them the least.

But the golden rule has not been repealed. Pleasing your customers can create a powerful competitive advantage – and a few simple changes may increase your bottom line.
​
To distinguish your firm from the rest, establish the following customer service policies and procedures.
  • Communicate with your customers. Return calls, emails, and social media contacts promptly, send updates about matters in progress, and explain delays as soon as you can.
  • Make life easy. Offer discounts at the point of sale rather than giving out coupons or making buyers apply for mail-in rebates. If you use an automated phone system, provide a simple method for reaching a live person.
  • Apologize early and whenever necessary. If you are even partly wrong, apologize and proceed to a resolution. Train your employees to do the same and reward them for positive outcomes.
  • Put customers first. Let your customers know you are there for them and that you regard them as more than “cash cows.” Listen to concerns and address them promptly. If a customer is unhappy with a purchase (whether product or service), fix it, replace it, or refund the payment in full.

At worst, the loss will not be compounded by damage to your reputation. At best, the money will come back multiplied by repeat business and referrals.

Quality service is a powerful marketing tool that is surprisingly easy to implement.

​Simply imagine how you would want to be treated and provide that treatment to your customers. As customer satisfaction increases, your profits will follow.
Picture

Are You At Risk for Employee Fraud?

1/20/2016

 
​A 2014 Global Fraud Study conducted by the Association of Certified Fraud Examiners (ACFE) estimates that the average business loses five percent of their revenues to fraud. The global total of fraud losses is $3.7 trillion.
 
The median fraud case lasts 18 months prior to detection, resulting in a $145,000 loss.
 
How can you avoid being a fraud victim?
 
The first step is to become more aware of the conditions that make fraud possible.
Picture
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
The fraud triangle is a model that describes three components that need to be present in order for fraud to occur:
  1. Motivation (or Need)
  2. Rationalization
  3. Opportunity
 
When fewer than three legs of the triangle are present, we can deter fraud. When all three are present, we leave ourselves open to fraud.
 
Motivation
 
Financial pressure at home is an example of a motivation to commit fraud. The fraud perpetrator finds themselves in need of large amounts of cash due to any number of reasons: poor investments, health care expenses, family requirements, gambling, a flamboyant lifestyle, or social pressure.
 
In short, the person needs money – fast.
 
Rationalization 
 
The person who commits fraud rationalizes the act in their minds:
 
  • I am too smart to get caught
  • I will put it back when my luck changes
  • The company will not miss it
  • I do not like the person I am stealing from
  • I am entitled to it
 
At some point in the process, the person who commits fraud loses their sense of right and wrong. They stop believing there will be consequences.
 
Opportunity
 
Here is where you as a business owner can truly help prevent fraud. If there is a leak in your control processes, then you have created an opportunity for fraud to occur.
 
Employees who handle cash, have signatory authority on a bank account, or manage financial records with poor oversight could combine the opportunity for fraud to occur with the ability to cover the act up for an indefinite period of time.
 
Seventy-seven percent of all fraud occurs in one of these departments: accounting, operations, sales, executive/upper management, customer service, purchasing and finance. The banking and financial services, government and public administration, and manufacturing industries are at the highest risk for fraud cases. (Source: ACFE)
 
Prevention
 
Once you understand issues leading to fraud, prevention is the next step. To some degree, all three points on the triangle can be controlled; however, most fraud prevention programs primarily focus on the third area: Opportunity.
 
When you can shut down the opportunity for fraud, then you’ve gone a long way to prevent it.
 
While we hope fraud never happens to you, it makes good sense to take preventative steps to avoid it.

​Please give us a call if you would like to discuss options that may assist your business to avoid becoming victim to fraud. 

Keys to Effective Cash Management

1/13/2016

 
Add cash management to your list of business goals for 2016. Commitment to effective practices and techniques can be the key to keeping your business operating on a sound footing.

Some tips:


  • Reduce lag time. Reducing the time between sending out invoices and receiving payment may take the form of giving incentive discounts to customers who pay early. On the expense side, aim for just-in-time inventory to reduce holding costs.
Picture
Image courtesy of bplanet at FreeDigitalPhotos.net
  • Establish a line of credit. To cover shortfalls resulting from excessive lag time, unforeseen business disruptions, or weakening in your particular market, set up a line of credit with your local financial institution. What to watch out for: The tendency to let short-term credit develop into a crutch that props up poor cash management.

  • Check out new customers. Assess whether new clients are likely to pay on time before extending credit. Deadbeat clients can squeeze your firm’s cash flow quickly.
​
  • Grow with caution. Expanding into new markets can bring momentum and additional sources of income. But developing new product lines, expanding facilities, hiring employees, and ramping up your marketing budget all consume cash. Be sure your cash forecasts are accurate. Review and update them on a regular basis.
This general information should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.

Standard Mileage Rates Reduced for 2016

1/7/2016

 
Beginning January 1, 2016, the new published mileage rates are as follows:
  • Business. The standard mileage rate for driving a vehicle for business purposes is set at 54 cents per mile. That’s down from 57.5 cents in 2015.
  • Medical and moving. The rate for medical and moving mileage decreases from last year’s 23 cents a mile to 19 cents a mile.
  • Charity. The general rate for charitable driving remains at 14 cents a mile.

Upcoming Tax Deadlines for 2016

1/5/2016

 
Picture
Image courtesy of hywards at FreeDigitalPhotos.net

​A new year means tax return filing season has arrived once again. Among the tax deadlines you may be required to meet in the next few months are the following:
  • January 15 – Due date for the fourth and final installment of 2015 estimated tax for individuals (unless you file your 2015 return and pay any balance due by February 1)
  • February 1 – Employers must furnish 2015 W-2 statements to employees. Payers must furnish 1099 information statements to payees (The deadline for Form 1099-B and consolidated statements is February 16)
  • ​February 1 – Employers must generally file 2015 federal unemployment tax returns and pay any tax due
  • February 29 – Payers must file information returns (except Forms 1095-B and 1095-C) with the IRS (March 31 is the deadline if filing electronically)
  • February 29 – Employers must send W-2 copies to the Social Security Administration (March 31 is the deadline if filing electronically)
  • March 31 – Large employers must furnish Form 1095-C to employees
  • May 31 – Forms 1095-B and 1095-C due to IRS (June 30 is the deadline if filing electronically)
This general information should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.

    Author

    Successfully meeting the challenges inherent to new and smaller businesses provides me with a special type of satisfaction. 

    Supporting businesses that have the potential to become amazing – from both the perspective of owners and team members as well as their clients – is what I enjoy. 

    I hope to use this blog to provide information specific to businesses that are growing from small beginnings into exceptional companies.

    Archives

    February 2022
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    July 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015

    Categories

    All
    Accounting Tips
    Business Management
    Employee Benefits
    Special Interests
    Tax

    RSS Feed

Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
  • Home
  • Why Us?
    • Reviews
    • Open Positions
  • Client Services
  • Resources
    • Save on QBO Subscriptions!
    • Tax Refund Status
    • Gusto Year End Checklist
    • Videos >
      • Business Taxes >
        • 2019 Business Tax Highlights
        • 7 Ways Small Business Can Save On Tax
        • Taxes for S-Corp Owners
        • The IRS Loves Businesses
      • Personal Taxes >
        • 2019 Tax Highlights
        • Five Yearly Tax Essentials
        • 4 Common Tax Surprises
        • Retirement Can Be Taxing
        • Advance Child Tax Credit Reconciliation - 2022
        • Make the Most of Your Donations
        • Five Great Tax Secrets
        • Renting Your Property Tax Free
        • Ideas to Audit-Proof Your Tax Return
      • The Tax Cuts & Jobs Act >
        • The Tax Cuts & Jobs Act: What You Need to Do Now
        • The Tax Cuts & Jobs Act: Are Itemized Deductions A Thing of the Past?
        • The Tax Cuts & Jobs Act: The New Child Care Tax Credit
      • Tax Topics >
        • Tax Season is Coming!
        • The New World of Deductions: What Everyone Needs to Know
        • Proving Your Deductions
        • How to Fix a Mistake on Your Tax Return
        • How Long Should I Save It?
        • Tax Credit vs Tax Deduction
        • Understanding Effective Tax Rate
        • Understanding Marginal Tax Rate
      • Life Events >
        • Life Events: A New Birth
        • Life Events: Marriage
        • Life Events: Divorce
    • Articles >
      • Accounting & Bookkeeping >
        • How to Get the Most Out of Your Accounting Fees
        • The 10 Biggest Money Leaks in Your Accounting System
      • Business Factors >
        • IRS Rules for Classifying Workers
        • Checklist for a Healthy Cash Flow
        • 12 Ways to Improve Your Business Profits
        • 10 Step Annual Business Check-Up
      • Tax Topics >
        • Tax Guide for Self-Employeds
        • 15 Things Every Tax Payer Should Know
        • Disaster Casualty Losses
        • Travel & Entertainment Deductions
        • Tax Guide - A Deduction Checklist
        • What You Should Know About Tax Audits
    • Newsletters >
      • Newsletters - Monthly Editions >
        • Newsletter - Monthly Edition
      • Newsletters - Quarterly Editions >
        • Newsletter - 2019 Fall/Winter
        • Newsletter - 2019 Spring/Summer
    • How To's >
      • How To - Dext
      • How To - BILL
  • Blog
  • Appointments
    • Client Consultations