On your mark, get set…GO prepare for tax season

The combination of running a business and your life and preparing for tax time can drive some people into a slight panic. But no need to get stressed if you are prepared. Now is the time to start organizing all documents required to file your tax return.

Also, consider going completely digital this year. Start by scanning in your paper receipts and other source documents and organizing them within a dedicated online folder. When the time comes, all you’ll need to do is upload your digital documents for our team.

The checklist below will help you start to compile the basics:

• Copy of last year's return (for first-year clients; include spouse’s return if applicable)
  
  
• Paperwork for dependents, including SSNs and DOBs
  
  
• All proof of income, including W-2s and 1099s
  
  
• List of deductions

Feel free to contact us with questions. We are here to help make tax season as stress-free as possible for you!

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5 tips to mitigate paying taxes on Social Security benefits

Like the old paraphrased saying goes: In this world, two things are certain—death and taxes. The recent federal tax overhaul changed a lot of rules, so it’s as important as ever to understand your tax obligations, including those on Social Security benefits.

According to the Social Security Administration, some will be obligated to pay federal income taxes on Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).

No one can avoid the long arm of the tax man altogether, but there are ways to reduce your income and lower (or even avoid paying) taxes on your Social Security benefits. Consider the following tips:

1. Consider withdrawing money from a Roth account:
   If you need additional cash during the year, consider withdrawing it from your Roth IRA or Roth 401(k), Taxes are not due on Roth distributions and will not impact your adjusted gross income. Be aware of the minimum required distribution (RMD), however. Taxes are not due on Roth distributions as long as you have contribution basis. 
   
   
2. Distribute your RMD to charity: Giving money to charity is a great way to help make the world a better place. While doing good for others, you can also lower the odds that your Social Security benefit will be taxed. You can transfer up to 100k per year to qualified charities.
   
   
3. Reevaluate working a part-time job: Money earned working a part-time job pushes you a little closer to owing taxes on Social Security benefits. If your part-time wages make little difference in your quality of life and/or you don’t like the work, consider ditching the part-time gig.
   
   
4. Reconsider municipal bonds: People are often attracted to municipal bonds as a way to lower their tax bill because they are not subject to federal and state income taxes. However, municipal bond income is included in the formula that determines whether or not you will pay taxes on your Social Security benefits.
   
   
5. Delay benefit collection: Delaying benefits until full retirement age (or beyond) is the best way to avoid paying taxes on Social Security benefits, at least for a while. Waiting to file for benefits also means a bigger check each month once you finally do start collecting.

Of course, be sure to consult with our firm if you have questions and to ensure the best tax strategy. Here’s to a happy and financially healthy New Year!

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Meet Carolyn Boyd, CPA

The Barwick CPA team is made up of many dedicated and talented individuals. In our Employee Spotlight series, you'll meet some of these people, learn what they do (on and off the clock), and find out how they make our firm unique and fun.

Today, the spotlight is on our newest CPA, Carolyn Boyd, who along with having the skills to crunch numbers, possesses a bit of a sweet tooth and loves all creatures great and small. Bringing to our firm over 25 years of experience in the industry, Carolyn attended Towson State University where she received her BS in Finance. Please join us in welcoming Carolyn to our team and get to know her on a more personal level as she shares some insights on her interests and favorite activities below.

What do you like best about working for Barwick CPA?
The Work/Life balance they offer. Living in Pennsylvania requires an hour’s commute, one way. Barwick CPA offers the flexibility to work from home and reduce office hours to two days per week. I appreciate the freedom to control my work days in adjustment to my lifestyle.

If you could do another job just for one day, what would it be?
I would be a baker. I’ve always enjoyed baking cakes and making various desserts. Everyone that comes into a bakery always seems happy and excited to browse the assortment of sweet treats. I can’t live without dessert, and tiramisu is my favorite!

What would you tell your 13 year-old self?
I would advise her to “Just be yourself.”

What are the top three highlights of your life?
Graduating college, marrying my husband, and being a mother to our three children.

Emily is 17 and a senior in high school. She enjoys sports, mainly gymnastics. She was on a gymnastics travel team, and competed up until a few years ago. Currently, she coaches little kids at Gymnastics of York and spends considerable time exploring options for college.

Lauren is 15 and a sophomore in high school. She prefers her quiet time for reading and enjoys time with friends. Lauren is my straight A student, and my “mini me.”

Jacob is 10, and a 5th grader. He’s always silly and enjoys playing video games and drawing various characters. He is by far the one who tests my patience (as boys do) the most, but he is a very loving and sweet boy.

Our family activities include dining out, going to Hershey Park, hiking around local parks in York, Penn., or going to the pool in the summer time. When tax season is over for me, we go on family weekend beach getaways for relaxation and shopping.

What would people be surprised to know about you?
They would be surprised at my age. I’m older than I look.

What is the best book you have ever read?
Since having children, I’ve been limited with my time so it’s been mainly children’s books. My last recollection would be the Pigeon Series Books by Mo Willems, “Don’t Let the Pigeon Drive the Bus!” My son always preferred to read picture books, and he would beg me to sit and read with him. It has a silly storyline, and it’s interactive with the reader. I enjoyed watching his facial expressions and hearing his never-ending laughter whenever I would read it.

What would you do (for a career) if you weren’t doing this, and why?
I would be a veterinarian. I love being around animals because they love unconditionally. Animals give their all to make you happy. I think helping animals would be rewarding, and I can’t imagine my life without them.

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New IRS warning: Email scams will surge this holiday season

Unfortunately, cyber scammers never take a vacation. In fact, the IRS has issued a warning of a surge in fraudulent emails that bait potential phishing victims with fake tax transcripts. Links within these emails lead recipients to documents containing the well-known malware, Emotet.

Fraudulent emails will look as if they are coming from the IRS and specific banks and financial institutions. These emails usually have an attachment labeled "Tax Account Transcript" or something similar with a subject line that uses some variation of the phrase "Tax Transcript." Be warned that scammers will likely also use other subject line verbiage.

This season’s scam targets not only individual taxpayers but businesses as well. If an employee opens the malware, it can spread through a company’s network requiring a time-consuming and expensive fix. Employers should be sure to educate employees on this newest scam and offer a refresher course on how to spot fraudulent emails.

Remember, the IRS never sends unsolicited emails or sensitive information via email. If you think that you have received a malicious email, do not click on the message. Instead, forward the potential fraudulent email to phishing@irs.gov and then promptly delete it. If you receive such an email at work, do not interact with it and alert your IT department immediately.

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Minimize the hustle and bustle and stay on budget this holiday season

The holidays can be overwhelming. You only have so many hours in a day, your gift list is long, and your budget may be tight. A bit of up-front planning and prioritizing can help save you time and money. Here are a few ideas to help you minimize the hustle and bustle, stay on budget, and find more peace this holiday season.

• Organize your shopping trips—Try to centralize your shopping. Create your gift list first and then identify the stores that carry the items you need. Try to select stores close to one another. This will reduce mileage and keep the fuel budget in check.
  
  
• Purchase in bulk—If you’re creating multiple gift baskets with similar content, try buying items in bulk. This will help you save significantly from what you would pay for items individually.
  
  
• Think simple—Expensive gifts aren’t always the most appreciated. Consider gift ideas that are simple, useful and thoughtful. For example, if you have a dedicated “puzzler” in the family, give them a unique and big (1,000+ piece) jigsaw puzzle with the promise that you’ll assemble it together. Also consider homemade gifts such as soaps or a crochet blanket. Thoughtful framed photo collages can also be a big hit.
  
  
• Shop Local—Check out your local small businesses and farmers/artisan markets this holiday season. You will likely find far more unique gifts at much lower prices. You’ll also be supporting your local economy to boot.
  
  
• Start early—Strive to complete your holiday shopping by early December. This will save you the chaos of over-crowed shopping malls and those last-minute pricey impulse buys. You’ll have peace of mind knowing your shopping is complete, and you can concentrate on what matters most…quality time with those you love.

From our family to yours…we wish you a happy, calm and budget-friendly holiday season!

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Spreading the feeling of gratitude

Instilling a thankful frame of mind among your staff makes for a gratifying work place. Consider a few suggestions for developing an atmosphere of thankfulness to get into the spirit of the holiday season.

• Focus on gratitude. Start meetings with a thoughtful exercise. Ask staff to name one thing they’re grateful for or to share a win they have experienced recently. You’d be surprised at how smoothly a meeting runs afterwards.
  
  
• Give credit where it’s due. Bolster leadership qualities by announcing a job well done, and offer your thanks for the initiative taken.
  
  
• Enter the office with a smile and a kind greeting. Starting the day with silence can be off-putting and can dampen employee spirits. Exhibiting a little cheer can rally the troops from the start of the day.
  
  
• Reward good behavior. As simple as it sounds, everyone responds to a thoughtful reward. If it’s been a demanding week and work has been completed, consider letting employees leave early, providing lunch to the team, or throwing a small party with tasty appetizers and beverages as a sign of thanks.

A few small outward displays of gratitude to your employees can go a long way. And what better time than during the holiday season?

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Ramp up awareness to ‘shop small’ on Small Business Saturday this month

Black Friday and Cyber Monday need no introduction, but for small business owners it’s all about Small Business Saturday—an annual holiday shopping tradition that gets communities out in support of their local small businesses. Small Business Saturday falls on November 24 this year, so if you haven’t already…start getting the word out.

Here are a few ideas to help you publicize the shop small movement:

• Promote your Small Business Saturday specials in-house. Hang signs, remind customers verbally as they check out, and fold printed reminders into packaging.
• Advertise store specials in local publications with a coupon good for Small Business Saturday.
• Develop a fun and engaging campaign to post within your social media channels. Post regularly from now through November 24.
• Place eye-catching, creative flyers and ads around your local community, directing traffic to your business.

Make the most of Small Business Saturday this year with a little preparation and promotion. And be sure to make a visit to your store memorable with a small giveaway, a hot chocolate or cider stand, and/or a plate of tasty treats. Here’s hoping November 24 turns into your very own “Black Saturday!”

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Important Update: 1099 Reporting for 2018

The Protecting Americans from Tax Hikes (PATH) Act of 2015 requires Forms 1099-MISC reporting non-employee compensation (NEC) in box 7 to be filed by January 31.

All filing deadlines are as follows:

• Reporting NEC, whether filed on paper or electronically: January 31
• Not reporting NEC and filed on paper: February 28
• Not reporting NEC and filed electronically: March 31

Important changes for filing in 2018:

1099-MISC forms reporting NEC must be submitted in a single submission. This means if additional 1099-MISC forms with NEC are required after originally submitting them to the IRS and after the January 31 due date, then ALL 1099-MISC forms with NEC have to be reprocessed and filed together. If they are not filed as one submission, the IRS Section 6721 penalty will apply to all forms that were not included in the single submission.

In addition to submitting all 1099-MISC with NEC in one submission, if our firm does need to file after the January 31 due date, any 1099-MISC without NEC need to be a separate submission as well.

For us to serve you best, we strongly recommended that you aggregate all vendors requiring a 1099 prior to the January 31 deadline. Failure to submit data in a timely manner can result in penalties and processing fees that we want to help you avoid.

If you have questions, please contact us.

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Bring in extra traffic with some trick-or-treat action

Small business owners in many communities offer downtown trick or treat events. Take advantage of this opportunity to build your business reputation. Involvement in local events goes a long way with both existing and prospective customers—indicating a vested interest in your community. Find creative ways to make your business stand out this trick-or-treat season. We hope the following suggestions will spark fun promotional ideas:

• Offer a wide variety of treats for the kiddos. All kids are unique, so have a variety of goodies on hand. Mini chocolate bars, Smarties and gumballs are among fan favorites. If you do offer candy, have special-needs alternatives on hand. Hand out sugar-free candy for children with diabetes and nut-free treats for those with nut allergies. Plastic spider rings, rubber bouncy balls, and Halloween-themed novelty toys are wonderful alternatives to sugary favorites.
  
  
• Keep it fun and age appropriate. Try to keep decorations acceptable for varied ages. Too scary, and the little ones might be too terrified to walk by your storefront.
  
  
• Research community involvement opportunities. Check into a booth at the fall carnival to promote your business, or set up a photo op area for parents to snap pics of their children in costume.
  
  
• Have a promotional item for each child. Order paper pirate hats and princess crowns printed with your company logo. Wearable items may provide added advertisement for days after Halloween!

Wishing everyone a safe and happy Halloween!

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Recognizing Women-Owned Small Businesses Everywhere!

October marks Women’s Small Business Month, and we are happy and proud to recognize women in business both locally and around the world. Successful business women of the past and present continue to forge new paths for female entrepreneurs. We celebrate all those who are breaking the glass ceiling and serving as role models and mentors to women everywhere.

To support Women’s Small Business Month, we wanted to share a few statistics to spotlight the powerful impact women have had and continue to have on the American economy. Women solely own 36 percent of small businesses in the United States, employ 9 million people, and generate $1.7 trillion in sales. Additionally, 2.5 million businesses in the United States are owned equally by women and men. These dually owned companies contribute $2.5 trillion to America’s economy, provide $189 billion in payroll, and employ 6.5 million people.

Our firm effusively congratulates each and every woman in business! Please feel free to reach out to our firm at any time for support and advisory services as needed. Our goal is that you continue to succeed.

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Take Advantage of the September Slowdown

For many business owners, September tends to bring a bit of a slowdown. The chaos of getting kids prepared for going back to school has passed, and a focus on saving money tends to kick in as people prepare for the coming holiday spend. Combined, this can often translate into a lull for business owners.

Take advantage of September slow time to tackle these tasks:

Clean it up— Keeping your business clean and presentable to the public is a big part of maintaining a strong brand presence. Divide chores among staff during slow periods to keep everyone busy…and your business spotless.

Organize and restock—Organize storage areas, recycle unwanted goods and donate gently used items. Purging is good for the soul…and helps you stay organized and efficient.

Perform a filing flush and software updates. It’s always when you are the busiest that you can’t find that needed file or you experience a system crash. Periodic system updates and file purging can help avoid these situations. Take time to clean out electronic files and update software to keep operations running smoothly for everyone.

Plan your holiday marketing strategy. Research ideas for amping up your holiday sales. Meet with designers to start developing your holiday social media, digital and print campaigns. If you also host a party for staff and/or the community, start mapping that out as well and book needed vendors.

If you experience a September slowdown, make good use of this down time to enhance business processes, keep your staff busy, and plan for upcoming events. An organized and well-run business is good for the soul…and for the bottom line.

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Reminder: Q3 Tax Estimate is Due Soon!

This is a friendly reminder that the Q3 tax estimate payment deadline is coming up fast. Be sure to make your payment by September 15, 2018 to avoid penalties. Currently, penalties for late or no payment average about 4 percent. And wouldn’t you rather keep that money in your pocket?

Staying current on your estimated payments is good business practice. If you are due to make a Q3 payment and have questions, feel free to contact our firm.

Have a great month. And remember, we are here to help!

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Dinner, Drinks and Deductions

According to new rules from the Tax Cuts & Jobs Act, meals and entertainment tax-deductible expenses for businesses have undergone considerable reform. Because the explanations of new deduction guidelines can be confusing, we’ve created this brief outline for you. A visit with your accounting professional to ensure your Chart of Accounts is correct may also be beneficial.

• The office holiday party has been salvaged and is still 100% deductible.
• Taking a client golfing, out to a concert or giving them tickets to a sporting event all fall under entertainment expense. These perks are no longer deductible.
• Meals taken while on mandatory business travel will remain 50% deductible.
• Meals provided for the convenience of the employer (i.e. feeding an employee working through lunch or dinner) are now only 50% deductible.
• Meals provided to the public to generate business remain 100% deductible.
• Travel for business reasons and costs associated continue to be 100% deductible.

Keep expense details specific with coinciding receipts. Your bookkeeper will be grateful!

Remember, we are here to help, so contact our office any time for further explanation on new meals and entertainment rules.

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Back to School on a Budget

August is upon us once again. The collective “UGH!” is heard nationwide as families trudge toward the school supplies aisle in preparation for the upcoming academic year. Sadly, the “days-gone-by” supplies such as a box of crayons, spiral-ring notebooks and a pack of #2 pencils have evolved into a much longer list. But never fear, we’ve put together these useful tips to help you do “back to school” on the cheap.

1. Recycle older children's supplies. In our world of waste conscientiousness, why not teach children it’s perfectly acceptable to repurpose school supplies? Throw those backpacks in the washing machine. They’ll look just like new!
   
   
2. Check with friends who have children. Before you buy that higher math calculator or the latest technological gadget required for a modern education, ask a friend with a graduating student if you can purchase their used items before you pay full price.
   
   
3. Inquire about your community’s back-to-school relief projects. Do some research online or stop by your local Chamber of Commerce to gather information on organizations that offer school supplies aid such as Lions Club, Rotary Club, Masons, churches and other non-profits.
   
   
4. Open a savings account. Setting aside a small amount each month will be considerably less painful than paying for everything at once. To make saving easier, restrict yourself from eating out more than a few times a month or scale back your latte purchases. You’ll be surprised at how much you can save.
   
   
5. Research and prepare ahead of time. Set a good example for your little learners and do your homework. Compare sale ads, clip coupons or find out if your area offers a tax-free shopping weekend. Proper preparation can save you some serious green.

Best wishes to all the families facing the back-to-school frenzy. Take a deep breath. 
You got this. Or, as my English teacher would say, “You have this!”

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Healthy Summer Eating Made Easy – Part II

So popular was the topic of our last post, that we created Part II to create our eating-healthy-this-summer-themed blog series. Enjoy these added nutritional and time-saving tips for summer meal planning.

Summer truly is one of the hardest seasons to stick to a sound nutrition plan—especially when you consider vacations, hosting summer guests and lack of quiet time because kids are out of school. With the added activity that comes with summer, sometimes the energy to plan and cook simply disappears. So, let us help you with a few tips to get your healthy summer eating back on track.

• When and what to ‘snack’ on. Snacks should happen when there is a long period between meals—about 4-5 hours. Snacking can often turn into prime time for processed, sugar-filled foods…because they are packaged and convenient. If you can, shop for a week’s worth of fruit and veggies and keep them out for snacking. Whole grain crackers, cheese cubes and chicken or turkey slices are other great options for quick charcuterie-style snack breaks that take only a few minutes to prepare.
  
  
• Opt for better fast-food salads. Salads are a great go-to for a summer meal, but they take prep time. It’s totally fine to pick up pre-made salads, just be sure that they are mostly fresh greens and vegetables. Avoid salads with a lot of mayo, oils and croutons. And consider salsa instead of higher-calorie salad dressing.
  
  
• Throw veggies on the grill, too! The grill isn’t just for meat anymore. Grilling can be a quick and easy cooking fix, especially when you throw the entire meal on the fire. Wrap corn on the cob, potatoes, zucchini and other vegetables in foil and grill to perfection. Add a little teriyaki sauce, marinades and seasoning to give veggies some flair.
  
  
• Don’t forget the drinks. While water is always the best choice, you can make sugar-free drinks with relative ease. Put out a self-serve crock of sun tea or sugar-free lemonade (with fresh lemon and lime slices). A big enough crock can last all weekend, and all you have to do is offer up ice and cups.

Have fun this summer, no matter your plans…and stay healthy while you are at it. Keep these tips in mind to eat healthy with ease.

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5 Tips to Eat Healthy While on Vacation this Summer

If you are like most, summer is prime time for family and friend vacations. It’s a time to unwind and recharge…to see new places and try new things. For many, “new things” often means food. And if you are trying to maintain or lose weight, that can be a problem. So, for all you travelers trying to stay healthy this summer, here are 5 great tips to help you stay on a healthy eating plan and still enjoy your vacation!

1. Resist the urge to splurge—Most people tend to splurge when eating out, which means pumping far more calories into the body than it needs. It’s best to reprogram your thinking about eating out. Don’t view it as a special treat (which often leads to carte blanche to overindulge). Instead, view eating out as a way to fuel your body (like every other meal), and then consider sharing an entrée, ordering half-sized portions, or making a healthy plan for what you will eat before you sit down.
   
   
2. Have it your way—A lot of restaurants will allow you to customize your order. Order your meal YOUR way by asking for smaller portions, substituting fries for veggies, or eliminating the butter for cooked food.
   
   
3. The secret weapon of walking—When sightseeing, be sure to cover a lot of ground by walking. This will burn calories, which gives you some wiggle room if you choose to indulge now and again. Plan to take an extra stroll after dinner, a swim in the hotel pool, or an early morning hike to burn a few extra calories. 
   
   
4. Lose the mini-bar key—It seems overly simple, but you’d be surprised how quickly you forget about the snacks in your room when they are locked away with no key in sight. That little key tends to lead to no good…physically and financially.
    
5. Get in your “five a day”—Make an effort to get in your five servings of fruits and vegetables each day. This will fill you up faster and make meals feel more satisfying. It also helps you meet your daily fiber count…which will keep your digestive system on track while vacationing as well.

Apply these five easy tips while you are enjoying your summer away with family and friends. You’ll feel better while vacationing and when you get home.

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5 Tips to Get Kids Out of Technology and Into Nature this Summer

If you are like most families, summer means vacation. And if your kids are like most kids, they tend to be tethered to their technology. Whether planning to travel abroad or a long weekend at a local campground, summer is a time for exploration and simply paying attention to the beauty around us.

We want to help you “disconnect” your kids from their favorite devices and get them back to nature this summer with these helpful tips:

• Plan activities from your own childhood. Remember the days when you played outside for hours? Those same activities are still fun…especially when the entire family engages. Play a game of kickball, go for a bike ride (with a fun destination at the end of the ride; perhaps an ice cream stand or park), explore the woods, or play a game around the campfire. You’d be surprised at how quickly kids forget about technology when they are having fun outdoors.
  
  
• Identify vacation destinations that are family friendly. It’s tough to disengage kids from technology when there is “nothing” to do. While nature is fantastic, kids can only look for so long. They need to be active. If you are a camper, make sure your campground has activities for kids onsite or nearby. For example, a go-kart park, rock climbing wall, zip line or a swimming pool. If you are a hotel dweller, the same ideas apply.
  
  
• Bring fun nature projects for kids to work on. Engage your child’s mind in something hands-on that isn’t a smartphone. Build a birdfeeder from a kit, create a bug box or plan a fun outdoor scavenger hunt. Build in some creative time with your kids and experience the fun together.
  
  
• Find apps with built-in timers. You can certainly offer kids some time with their devices. Just keep it to a minimum while on vacation. There are game apps that offer internal timers so the app stops on its own. It's up to parents to make sure kiddos don’t just jump into another app.
  
  
• Lead by example. When children see their parents constantly connected to a mobile device, it validates their own use. Put down your own smartphone or tablet and engage in your vacation with your kids.
  
  

Here’s to getting your entire family back to nature! Have a fun and safe summer.

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Ideas for Multigenerational Family Vacations this Summer

Multigenerational family vacations have experienced an uptick in popularity, especially with older generations being more active and families living farther apart. Family getaways certainly bring people together physically, but also emotionally. Dedicated family time is simply good for the soul…even more so when multiple generations take part. With this in mind, we bring you a few ideas and tips to consider when planning your next multigenerational vacation.

Identify the purpose of the vacation
Family vacations, at the core, are about families sharing time and experiences. But what other reasons might you have for the trip? Getting to know your grandkids better? Re-experiencing traveling with your parents like when you were a kid? By being clear on expectations of multigenerational family trips, you can address the type of experience you’d like and make sure it meshes with what the rest of your family expects.

Consider mobility issues
If there are family members for whom traveling is difficult, take the vacation to them. This doesn’t mean staying in their home, but rather booking rooms for everyone in a local hotel (preferably one with a pool for the kids). This allows your less-mobile family members to join in on the fun without having to travel far from home base.

Take a tour
Experiencing the world with your family adds to any adventure. Many tour companies cater to a wide range of active age groups—offering tours of Alaska’s interior to a safari in Tanzania. As active seniors increasingly want to introduce their pre-teen/teenaged grandchildren to travel, many tour itineraries are being designed to accommodate all family members.

You can go home again
For the kids, getting a personal tour of where parents or grandparents grew up can make for an enriching trip. For parents and grandparents, it offers a trip down memory lane. It also creates a lasting connection with grandkids as you visit spots that are linked to your family’s history.

Do a little heritage travel
Consider taking a trip to trace your family’s roots. Make an ancestor’s hometown part of a larger trip or your official destination. Whether it’s the next state over or another country, communities warmly welcome families looking into their history and are often eager to share information.

Get everyone's input
Before you plan your next (or first) multigenerational family vacation, make sure to get everyone’s input up front. Having all family members agree on the plan will make for a much more enjoyable getaway and help create some wonderful new memories.

For all those who plan to travel with family this summer, these ideas and tips can help as you make plans for your extended family. Safe and happy travels!

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Your Smartphone Preparedness Travel Guide

For many of us, our smartphone is a vital travel tool. We rely on it for navigating unfamiliar places, taking photos, and identifying recreational activities. Michael Zhao, an editor for TheWirecutter.com, offers the following tips on what to pack in addition to your smartphone—so you won’t be stranded when traveling this summer...or any other time of the year.

• A backup battery. When traveling, you will likely use your smartphone for many tasks, causing you to burn through your battery quickly. A small, lightweight external battery pack is a must.
  
  
• At least three power cables. Pack two power cables for your phone—one that stays in the hotel room and another to carry with your battery pack. Your third power cable should charge your battery pack.
  
  
• A multi-port wall charger. For the sake of traveling light, don't pack multiple power bricks to charge your phone and battery. Buy a multi-port wall charger that can power all your gadgets at the same time.
  
  
• A plug adapter (if applicable). Some countries will have power outlets that are incompatible with your plugs. Research the type of power outlets that your destination has to determine if you need a plug adapter.
  
  
• A SIM card ejector (if applicable). If you plan to use a foreign wireless carrier's service, you will need to pack a card ejector. This looks like a small metal pin and is used to swap out your SIM card for the foreign carrier's.

A few other tips for smartphone-dependent travelers:

• Download important apps and maps ahead of time. You never know whether cell service will be sluggish or spotty, so download must-have media ahead of time at home.
  
  
• Have a backup plan for logging into important apps, such as those with two-factor authenticathat require a special code be texted to your phone.

In addition to all of these tips, you may also want to pack noise-canceling headphones to eliminate background noise while en route to your destination…as well as help you relax during your stay. So, if you are traveling this summer, here’s to a relaxing, stress-free and quiet time away from home!

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Facing the Facts: How to Interpret Facial Expressions at Work

You may be completely proficient at decoding emojis on social media and in text messages, but for many of us, figuring out what other people’s facial expressions mean can be quite a challenge. Here’s a quick rundown of how to interpret different facial stances based on research from people-communicating.com:

1. A smile—The lips can lie, so to truly know if a smile is genuine check to see if the eyes of your subject are also smiling. If they aren’t chances are that the smile is fake.
   
   
2. Pursed lips—Usually, this is a sign that your comrade or client is holding back their dislike for something. It might be worth asking them if they agree with what is being proposed.
   
   
3. Pouting lips—Going beyond the pursed lips into pouting, as you may guess, generally means that the person you are with is unhappy, hurt or dissatisfied in some way. Asking gentle questions can help to uncover the issue.
   
   
4. Biting lips—This expression is often a sign of worry, or a dry mouth. Suggesting a break and a glass of water can be a way to ease both of these possibilities.
   
   
5. Tight jaws—If the person you are with is stressed about something they may clench their jaws. If you are discussing a particularly hot topic consider taking a breather or asking them if a compromise could help alleviate their tension.
   
   
6. Frowning—Unhappiness is a common reason for frowning, but some people may just have a natural lip position that looks like a frown. If you are not sure, ask if something is upsetting them, if not, just move on with the meeting or talk you are having.

Whether you are face to face with your co-workers or clients in real time or via a video call, knowing what their faces are telling you can help avoid miscommunication and create better working relationships…no emojis needed!

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Summer is Just Around the Corner— And So Are Potential Childcare Tax Credits

Summer will be here before you know it! If you are a working parent with school-aged children, you know that it can also mean pretty steep bills for childcare and summer camp. However, you may be able to soften the hit to your family’s budget if these services qualify for the Child and Dependent Care Tax Credit.

This credit reduces your tax liability dollar for dollar when you deduct the cost of day care provided by a day camp, day care, preschool, babysitter or nanny. Keep in mind, expenses for sleep away camps and tutoring are not eligible for this tax credit.

Here are the other qualifications for deducting the cost of these services on your next tax return:

• If you are married and filing a joint return, both spouses must be employed, or one spouse may be a full-time student.
   
• If you are looking for employment, you can claim the cost of childcare provided during your job search—with the caveats that a) you have also earned some income during the year and b) your child is under 13 years of age.
  
  
•  You can claim up to $3,000 in eligible childcare expenses if you have one child and up to $6,000 if you have two or more children.
  
  
•  The amount of these expenses you can claim with the credit ranges from 20 to 35 percent, depending on your income.
  
  
•  The maximum of 35 percent of eligible expenses is available for those earning $15,000 or less.
  
  
•  The credit decreases to 20 percent of eligible expenses if you earn $43,000 or more, with no maximum income limit.
  
  
•  It doesn’t matter whether you file your taxes as married jointly, single, or head of household in regard to the income stipulations for the credit. However, you cannot file as married filing separately and also claim the credit.

Another note: You cannot double dip between a dependent care flexible spending account (DCFSA) and the childcare tax credit for the same expenses. However, if you have maxed out funds from your DCFSA, you can use the tax credit up to the limit for any additional childcare expenses.

For more information on the Child and Dependent Care Tax Credit contact our firm.

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Creating Balance Between Your Business and Personal Lives

Let’s face it, keeping a grip on who you are as a business professional and as an individual is a daunting task. When you finally take time to relax, recharge and unwind, your mind tends to drift towards your next business move or the items that have yet to be crossed off your daily to-do list. Because we all find ourselves playing the balancing act between roles, here are three tips to help keep you balanced:

1. Delegate
Learning to let go and trust someone else in your organization with important tasks is essential. The key to longevity in business is duplicating yourself. You want to be able to step away, attend a conference or go on vacation with confidence and without worry—knowing you’ve left your business in knowledgeable, competent hands.  

2. Plan YOU time when you create your schedule
When you sit down to map out your week, make sure you schedule at least one hour daily to feed YOU. Whether you take time to meditate, read a book, hit up a cycling class, get a massage, or simply take a walk outside to breath in the fresh air…allowing yourself this time will pay off in huge dividends in ALL areas of your life. Treat your personal hour like an appointment with a client. And do yourself a favor…don’t cancel!

3. Focus on what’s urgent, not important
Many of us have a hard time sticking to the script because everything magically becomes a big deal. In business, it’s important to have a schedule. In our personal life, we thrive on structure. When you create your to-do lists, life or death situations (literally and figuratively) come first; for example, doctor appointments and paying your bills—these are urgent and necessary. Next on tap are the things that need to be done, but don’t have to be rushed; for example, meeting for a leisure lunch or organizing client files. These are things you can schedule for another time or delegate, so you can get your urgent tasks accomplished. 

Managing multiple arenas IS possible if you plan and prepare properly. If balance is what you seek, start implementing these steps until you have mastered your own balancing routine.

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Employee Recognition – A Great Way to Motivate Your Staff!

Quite often we can get so wrapped up in checking projects off the company’s to-do list that we forget to recognize the labor that went into each accomplishment. Acknowledging milestones provides opportunity to show appreciation to the employees who helped you achieve them. This will go a long way in retaining top-tier staff. Use a few of our fresh ideas to recognize your team members:

• Surprise them. A totally unsuspecting employee will be blown away when they receive unexpected acknowledgment for their work. Take it up a notch by having friends and family show up for your employee’s spontaneous celebration.
  
  
• Capture celebratory moments. If you have regular award ceremonies or even during spontaneous surprise moments, capture the celebration on video or in a photo so you can share it with your team and even your clients.
  
  
• Do something thoughtful for the employee's family. Offer tickets to an amusement park or a sporting event. When your employee is working, they are spending time away from their –so you are acknowledging the family’s contribution to your company as well.
  
  
• Share personal anecdotes. When it comes to motivating employees, the recognition of their peers is very effective. Ask staff to nominate an employee for recognition and to write down outstanding qualities of the nominated staff member. Then share these comments during the recognition event.
  
  
• Create a scrapbook. This might take a little work, but it will be one of most memorable acknowledgements you can offer an employee. Have pees and even clients write comments about the difference this employee has made. Along with some photos have it all printed within a scrapbook (print or digital).

Getting into the habit of recognizing your dedicated employees is well worth the effort in terms of employee productivity, motivation and loyalty. Use the ideas above as a springboard for creating your own employee appreciation traditions.

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Receiving a Tax Refund? Spend It Wisely With These Tips!

Are you expecting a tax refund? If so, don’t treat your tax refund as ‘bonus’ cash. Rather look at it as simply a return of taxes paid beyond your actual obligation. This will help you think about using this money purposefully. Here are some ideas to try:

• Start or increase your emergency fund: By stashing away your refund into rainy day fund, you’ll build both a financial safety net and peace of mind.
  
  
• Eliminate or pay down high-interest debt: Once you have established an emergency fund, paying off any high-interest debt such as credit card balances, payday loans and debt consolidation loans is one of the best things you can do to improve your financial situation.
  
  
• Consider refinancing your mortgage: With relatively low mortgage rates available, you may want to consider refinancing your mortgage to lower your monthly payment and save money. Your refund can provide the funds to pay closing costs and other refinance fees.
  
  
• Contribute to tax-sheltered accounts: Using your tax refund to top-up (or start) a Roth IRA or 529 college savings plan offers you a double bonus. Not only will you be compounding dollars and interest for your future retirement or college tuition needs, but you’ll be creating a tax deduction as well.
  
  
• Improve the lives of others: If you have your own financial bases covered, then making a charitable donation is another good use of your return. The less fortunate will benefit from your generosity while offering you a tax deduction.
  
  
• Reinvest in yourself or your business: Is there something you would like to improve in your business? Or would you like to take a class? If you have funds leftover after taking care of savings and debts, these are a few more smart choices to invest in.

While it is tempting to use your tax return as a windfall, it is important to remember that you earned it. Also, if you are receiving a sizable refund, consider adjusting your tax withholding amount, so you have more of your income to use to cover expenses throughout the year.

Questions? Please contact our firm.

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Spring Cleaning Time is Here! An Easy 3-Step Checklist for Cleaning Your Office

The spring season is here! In addition to taxes, many of us want to take care of some overlooked cleaning tasks. Procrastination often creeps in when it comes to cleaning—especially our offices. It can feel overwhelming and somewhat unproductive to spend time decluttering and cleaning your workspace, but once complete, most people feel a sense of relief and calm. Use this handy checklist to expedite your office cleaning:

1. Your computer

• Clean your keyboard and computer vents with compressed air.
• Disinfect monitor keyboard, mouse and any devices on your desk.
• Untangle and label computer cords and cables.
• Backup files to the cloud, delete trash files and perform necessary updates.
• Defragment your hard drive and/or perform a disk utility cleanup.

2. Your Desk

• Dust and disinfect the surface.
• Trash any broken office supplies and nonfunctional pens and pencils.
• Enter contact information from business cards to your digital contacts.
• Clear all unnecessary documents and file, shred or recycle them.

3. General Housekeeping

• Dust the room, all window treatments and lights.
• Clean area rugs and carpets.
• Clean air vents, ducts and baseboards.
• Wash the windows and clean the floor.

By breaking down tasks into the manageable groupings, you’ll be more efficient as you clean your office. Keep this checklist handy—knowing that a cleaner office offers a sense of relief and calm.

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Disappearing Tax Deductions! Don’t Miss Them on Your 2017 Tax Return

Have you filed your 2017 taxes yet? If not, you still have the opportunity to make sure that you lower your tax obligation as much as possible. With new tax laws in effect for 2018 and beyond, the following deductions will disappear after this tax season—check them out to see which ones may help you lower your taxable income:

1. Personal and dependent exemptions. The $4,050 in potential personal and dependency exemptions are being replaced in 2018 with a higher standard deduction. This tax season is the last chance to use them.

2. Uncapped state and local tax deductions. Starting this year, you can only claim $10,000 in deductions for state and local taxes. There is no cap on these deductions on your 2017 tax return. Check to see how much you are eligible to claim before filing this year’s taxes.

3. A larger mortgage interest deduction. After the 2017 tax year, the ability to deduct interest on up to $1 million in mortgage debt will be phased out. The new tax laws cap this deduction at $750,000.

4. General deductions for home equity loan interest. Your 2017 tax return is the last one on which you can deduct all of the interest paid on a home equity loan. Next year, unless the money you borrow is used for home improvements, you cannot deduct interest on a home equity loan.

5. Deductions for unreimbursed employee expenses. Another deduction ending this tax season: unreimbursed purchases related to your employment (the total must exceed 2 percent of your 2017 adjusted gross income).

6. Itemized deductions. With the introduction of a higher standard deduction, there are several itemized deductions that are being eliminated after the 2017 tax year, including unreimbursed qualified employee education expenses, some professional services fees, and professional dues. You may want to ask a tax professional to see if there are others that you should claim this year.

7. Moving expenses. Did you move for work in 2017? Then you may be able to deduct your moving expenses if they meet the IRS guidelines. Unless you are in the armed forces, going forward, moving expenses will not be deductible.

These are just some of the deductions and exemptions that are impacted by tax reform. Now is the time to see which ones you should take advantage of as you prepare to file your taxes. If you need help preparing your 2017 tax return, contact our firm for assistance.

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Meet Carl Turner, Director of Business Operations

Carl Turner is the Director of Business Operations at Barwick CPA. He has 20 years of experience in corporate management and studied human services at Liberty University and Southeastern University in Lakeland, Florida.

We sat down with Carl to get to know him a little better and asked him hard hitting questions like, "What are the top three highlights of your life?"

Here's what he had to say.

What do you like best about working for Barwick CPA?
Working with our clients. I am a person who loves building relationships with others, and this gives me an opportunity to enrich my life by meeting so many wonderful people whom I would not have had the opportunity to meet without Barwick CPA. I like hearing where people are in their lives, where they have been, and helping them achieve where they want to go.

If you could do another job just for one day, what would it be?
Motivational speaker. I would love to stand up in front of a large crowd and give people the encouragement and wisdom to help them take a “dream” and provide the necessary steps to make it a “reality.” Giving others hope, encouragement, and education is vitally important to me.

What is your favorite vacation spot?
On board a cruise ship. It does my mind, body, and soul some good to disconnect from my busy life and connect with my friends and family. I love stepping on board the ship and putting my cell phone and car keys in a drawer for seven days so I can spend my time making memories with the ones I truly love.

What is the one thing you cannot resist?
French fries!!!!! But I have to have lots of ketchup to go along.

What are three traits that define you?

• Empathetic - I have a genuine concern to help others no matter what their situation might be.
  
  
• Optimistic - There are not many situations that cannot be turned around. It might not happen overnight, but with time and hard work, just about anything can be accomplished.
  
  
• Visionary - I am a dreamer. I get an idea and immediately start expanding on it. The key is not to just have the vision but the ability to share your vision with others and make them excited to be along for the ride. 

What is your motto or personal mantra?
“For I know the plans I have for you,” declares the LORD, “plans to prosper you and not to harm you, plans to give you hope and a future.” Jeremiah 29:11

What are the top three highlights in your life?

• Being a father
• Meeting my wife and becoming a team
• Hitting my first homerun

What would people be surprised to know about you?
I was a stand-up comedian. I had the pleasure of working under great comedians like Gilbert Godfrey, Daniel Tosh, Craig Robinson, and Mitch Hedberg.

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Tips to Boost Client Appreciation Efforts… Even When Time is Tight

When you are super busy running a business, it can be easy to let customer appreciation slide to the bottom of your long to-do list. The problem is, if you don’t show your customers love on a regular basis, they’re going to feel neglected, which can put their continued loyalty at risk.

Good news! You don’t have to spend a lot of time to make your customers feel appreciated. The following ideas coupled with your genuine gratitude makes it easy to show how much you care.

Send an unexpected treat. Imagine receiving an unexpected gift card or a sampler of delicious local fare. Offering a simple treat “just because” will show your appreciation and go a long way toward keeping your customers loyal. Time involved: Maybe five minutes to buy something online or to call a local bakery or food delivery service.

Give a shout out on social media. When your clients achieve an important milestone, take a minute to recognize it by posting your congratulations on Facebook, LinkedIn or Twitter. You can also share your customers’ content to add an extra level of engagement. Time involved: One minute or less.

Pick up the phone or schedule a video conference. While sending emails and texts is great, picking up the phone or having some virtual face time once in a while is important. Schedule a short “check in” call every quarter to show your clients that you appreciate their feedback. 
Time involved: 10 to 15 minutes.

Profile them. Here’s a win-win strategy for appreciating your clients and growing your business. Ask them if you can write a success story for your website or other marketing channel about how they are benefiting from working with you. They’ll get exposure and you’ll get social proof to help win more clients. Time involved: 90 minutes to interview, write the profile and post it on your website.

Offer referrals. The best business relationships are mutually beneficial. One of the best ways to appreciate the business your customers do with you is to return the favor, either by using their services yourself or by referring them to others.  Time involved: 10 minutes to either reach out yourself or to make an introduction.

Author Kevin Starts wrote, “Every contact we have with a customer influences whether or not they’ll come back.” Even if you are short on time, these tips can help you and your staff create meaningful contacts with your customers that show how important they are to you!

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Considering Hiring a Cybersecurity Professional? Here’s What to Look For.

With the occurrence of cybercrimes affecting businesses increasing daily, many companies are looking for outside expertise to help them mitigate their risks. If your company has never engaged a cybersecurity professional before, you may be unsure of what to look for. The IRS suggests businesses use the following four steps when evaluating and selecting a cybersecurity professional:

1. Ask other business owners or professionals for recommendations and references.

2. Keep trust at the forefront of your selection process. Since any cybersecurity professional you hire will have access to sensitive data and systems within your organization, it is essential that you feel comfortable granting such access to them.

3. When interviewing candidates, make sure you learn how much experience they have in data protection. The IRS suggests asking questions such as:

• How does ransomware work and what can we do to protect our systems?
• What are the best options to securely back-up data and why are those options the best?
• Do you have suggestions regarding the following: data encryption, malware, firewalls, disaster recovery and remote access tools?
• Have you ever created a security plan for a similar business?
• Can you do an assessment of my systems and processes to find vulnerabilities or weaknesses? If so, will you then provide recommendations to strengthen my security?
• Will you conduct security simulation tests with our staff? 
• What resources do you have to provide continuous staff education regarding security?
• Will you provide ongoing monitoring of my systems as security threats evolve? If so, how often do you recommend changes?

4. Once you have identified the cybersecurity professional or firm that you wish to engage, make sure that you execute a written agreement or engagement letter to ensure both parties understand how you will be working together.

For businesses that do not have an internal resource to help them safeguard their sensitive data and computer systems, hiring an independent cybersecurity professional or firm can be a wise decision. If your business decides to engage this type of resource, use the steps above to help you find the right fit for your company’s unique needs.

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5 Professional New Year’s Resolutions You Should Actually Keep

The start of a new year is like a universal pressing of the reset button where we assess what changes/resolutions we’d like to make to improve our lives and careers. Short on ideas? We offer 5 easy resolutions that you can implement today to help make you more creative, productive, and generally more content personally and professionally.

1. Write something every day. If you want to become a better writer, then you need to write a lot. The way to improve that skill is the same way you’d approach any other—with practice. Invest the necessary time and treat it like working out—you’ve got to do it consistently to see great results. It’s not about what you write, but about getting into the habit of writing regularly that’s important.

2. Designate an electronics-free zone. Our bodies are smarter than you might think. They’re trained to respond to light and dark, and to send us important signals, like the time of day. Our brains recognize brightness from phones, computer monitors, and even TVs as external light, which sends the signal that we should be awake. So, ditch the electronics completely before bed. Instead, try reading, journaling or maybe even a few minutes of yoga.

3. Don’t get tool happy. There’s always some sort of new tool, app or platform released that promises to skyrocket your productivity. Some tools can be helpful in keeping you focused and organized. However, if you load up on too many—particularly ones that don’t integrate or work together—you’ll only end up slowing yourself down. Do your best to identify what works best for you and then keep things lean by using only multi-purpose tools that meet your needs.

4. Read more. The most successful people never stop learning. There’s a reason why a large percentage of professional or managerial roles continue their education—it’s one of the best ways to keep up with industry trends, learn from experts, and get the creative juices flowing. One of the best ways to do that outside of a classroom is to read what others are writing about and explore different perspectives—whether they’re of personal or professional interest.

5. Use your vacation time. Taking time off actually makes us more productive. Vacation-aiding productivity echoes the research done on how taking breaks leads to higher productivity. So, do some planning. Review your calendar and figure out when you’ll be the busiest at work. Are there certain weeks when you’ll have a little more time to get ahead? Those are good pre-vacation weeks, allowing you to increase your output before you head out.

Not all New Year’s resolutions involve gyms and special diets. These can help you become a better employee and challenge you to continue learning and improving, no matter where you are in your career.

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Need Help Trying to Make New Habits Stick? Try These Simple Tips…

Even if you are not a New Year’s resolution maker, it’s likely that at some point in your life you’ll want to adopt healthier or more productive habits. When you do want to make a change for the better, consider trying the following tips from lifehack.org to increase your chances of making your new good habits stick:

1. Identify the root of the resistance you may be feeling when adjusting to your new habit. If you are having trouble making a change to your routine last, take some time to journal how you feel about the new activity. This can lead you to uncover unconscious barriers that may be keeping you stuck and allow you to find ways around them. For example, if you find it hard to get out of bed and get to the gym, you may resent that you are losing extra rest time. If that is the case, consider going to bed a little earlier so you don’t shortchange yourself on sleep.

2. Try to change complementary habits at the same time. Many of our habits are intertwined, which means if you try to change one, you may be more effective if you also change a related behavior. For example, if you want to read more this year, you may want to reduce your TV-watching time to make room in your day for your new book-loving habit.

3. Monitor your progress. Tracking how successful you are at consistently practicing your new habits keeps you accountable and can also provide a visual reminder of your commitment. You can track the times that you reinforce your habit on a simple piece of paper, calendar or whiteboard. Or, you can use one of the many apps available for smartphones if you prefer to monitor your progress digitally.

4.  Recruit cheerleaders. It can be very difficult to change deeply ingrained habits without a supportive environment, so don’t be shy about sharing your goals with friends, family and co-workers to keep you on track and encouraged. Plus, for habits that may impact other people (like you getting up early to go to the gym while your partner is tasked with getting kids off to school), having supportive cheerleaders is even more critical.

It can be very challenging to make new habits stick, but whether you attack your goals now or sometime in the future, keeping these simple tips in mind should make it a little easier. Also, be sure to share these tips if you know someone who could use a little encouragement while trying to achieve their own goals.

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Quick Tips to Help You Tackle Your Taxes with Ease

Tax season is approaching quickly. It’s just a few weeks until the IRS officially starts accepting returns, which means now is the perfect time to use the tips below to help you net some last-minute tax-savings and tackle tax season with ease.

1. Top up your retirement accounts. You still have until April 17, 2018 to make a contribution to a traditional IRA or a Roth IRA and reduce your taxable income. If you have a Keogh or SEP IRA, you have until October 15, 2018 to top them up. Note that the maximum IRA contribution you can make for the 2017 tax year is $5,500 ($6,500 if you are age 50 or older by the end of the year). For self-employed individuals, the maximum annual addition to SEPs and Keoghs for 2017 is $54,000.
   
   
2. Ready your tax records. You will likely start seeing tax documents such as your W-2, investment account summaries and other receipts or information return copies come in your mailbox. Or you will receive notifications that they are ready to access via email over the next few weeks. Put these items in a safe place with your tax receipts and other tax documentation so you can avoid the stress of searching for documents. This will also allow you to expedite the filing of your tax return by beating the April rush.
   
   
3. Be aware of the tax deadlines. Our firm will work to keep you on track for meeting the filing deadlines. However, if you don’t think you’ll be able to make the filing deadline, just let us know in advance and we can file an extension on your behalf, giving you until October 15, 2018 to file your personal taxes. Be aware that you will still need to make a reasonable estimate of your tax liability for 2017 and pay any balance due with your extension request.
   
   
4. Let us know if you need help. Our tax experts are here to help. If you have questions about the information you need to submit in order for us to handle your taxes, please let us know. We are happy to answer any questions you may have about this year’s taxes and the impact of tax reform. We may also be able to identify areas of additional tax savings as well.

The key to easy tax filing is to get organized early and to reach out to our firm as soon as you can. This will help expedite any potential refund you may be entitled to—which is a great incentive to tackle your taxes now!

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5 tips to mitigate paying taxes on Social Security benefits

Like the old paraphrased saying goes: In this world, two things are certain—death and taxes. The recent federal tax overhaul changed a lot of rules, so it’s as important as ever to understand your tax obligations, including those on Social Security benefits.

According to the Social Security Administration, some will be obligated to pay federal income taxes on Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return).

No one can avoid the long arm of the tax man altogether, but there are ways to reduce your income and lower (or even avoid paying) taxes on your Social Security benefits. Consider the following tips:

1. Consider withdrawing money from a Roth account:
   If you need additional cash during the year, consider withdrawing it from your Roth IRA or Roth 401(k), Taxes are not due on Roth distributions and will not impact your adjusted gross income. Be aware of the minimum required distribution (RMD), however. Taxes are not due on Roth distributions as long as you have contribution basis.
    
2. Distribute your RMD to charity: Giving money to charity is a great way to help make the world a better place. While doing good for others, you can also lower the odds that your Social Security benefit will be taxed. You can transfer up to 100k per year to qualified charities.
   
   
3. Reevaluate working a part-time job: Money earned working a part-time job pushes you a little closer to owing taxes on Social Security benefits. If your part-time wages make little difference in your quality of life and/or you don’t like the work, consider ditching the part-time gig.
   
   
4. Reconsider municipal bonds: People are often attracted to municipal bonds as a way to lower their tax bill because they are not subject to federal and state income taxes. However, municipal bond income is included in the formula that determines whether or not you will pay taxes on your Social Security benefits.
   
   
5. Delay benefit collection: Delaying benefits until full retirement age (or beyond) is the best way to avoid paying taxes on Social Security benefits, at least for a while. Waiting to file for benefits also means a bigger check each month once you finally do start collecting.

Of course, be sure to consult with our firm if you have questions and to ensure the best tax strategy. Here’s to a happy and financially healthy New Year!

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Tips to Help You Truly Enjoy the Most Wonderful—and Overwhelming—Time of the Year

It’s amazing how much festive fun can be packed into a few weeks. While the holidays truly can be wonderful, they can also feel overwhelming with too much to do and too many temptations that derail us from enjoying what is truly important. To help you make your holidays feel more fulfilling and less frantic, try these suggestions:

1. Be intentional. Staying focused in the midst of the hectic holiday season can seem like a daunting task, but it's key to staying relaxed. Be mindful of what your priorities are and act with intent to make sure you keep focused on what you really need and want to do.

2. Give yourself a break. Funny how we call this time of year the “holidays” and it can feel anything but relaxing. Make a vow to carve out time to give yourself the break that you deserve.

3. Take vacation time. Rather than trying to cram personal errands into your workday, schedule a personal day to focus solely on those domestic and personal holiday preparations. This will allow you to focus 100% of your energy on work when you are at the office and help you feel more in control.

4. Just say no. It’s simple to do, but not always easy to say “No”…especially around the holidays. However, accepting an invitation because you don’t want to hurt someone’s feelings can have you burning the candle at both ends. So, practice politely and graciously declining invitations, and then put this skill into action.

5. Manage your own expectations. While you can do everything—you can’t do it all at once. This is an important mantra to keep in mind during the holiday rush. You and those around you can only do so much, so set realistic expectations about what you are willing to do and then be at peace with your decisions.

We hope you take these tips to heart in order to truly enjoy this special time of the year and avoid that overwhelmed feeling. Happy Holidays!

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Stockings 101 – stuffers, budget and more!

Many of us spend a lot of time putting together a Christmas budget, but rarely factor in the cost of filling the stockings. Beware…before you know it, all the trinkets and random what-nots can really add up, and could have you spending more on the stockings than the gifts. Follow our stocking stuffer tips to stay on budget this year!

Budget:
On average, $35 per stocking is reasonable, regardless of age. It may not seem like much, but if you have 5 people in your family, that’s an extra $175 just on stockings, so be sure to stick to your budget.

Stuffers:
Every family has their own stocking traditions. Here’s a list of a few cleaver stocking stuffers that won’t break the bank.

• Orange or other delicious fruit
• Small gift cards that are $10 or less (Amazon, iTunes, Starbucks)
• Candy, favorite sweet treats
• Lottery tickets
• Warm socks, gloves, winter beanie
• Toothbrush, floss, toothpaste
• Golf tees or balls
• Small toys, rubix cube, matchbox cars, trading cards, harmonica
• Magazine, small book, coloring books, stickers
• Tickets to the zoo, musical or concert
• Nail polish, cuticle set
• Hair accessories
• Fishing lures
• Travel sized games (Connect Four, Uno), playing cards
• Magnets, keychains, Swiss army knife
• ChapStick, lip gloss, hand sanitizer
• Wine stopper, wine aerator
• Cell phone charger
• Coffee or tea mug

With a little forethought and a few of the suggestions above, you can easily stay within a reasonable, yet festive stocking budget. Happy holidays!

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Tax Reform Update: A Snapshot of Key Proposals in the GOP Bill

On November 16, the House passed a new tax reform bill that moves the GOP closer to bringing the legislation to fruition. Now the Senate is preparing its own tax reform package. If passed, it must be reconciled with the House before any final legislation goes to the White House. Here is a snapshot of some of the key changes proposed in the tax reform bill:

• Individual tax rates would be reduced and there would be four revised brackets of 12, 25, 35 and 39.6 percent. There is also a new maximum rate on business income for individuals of 25 percent.
• The standard deduction would be almost doubled, but personal exemption deductions would be repealed.
• The mortgage interest deduction would be capped at $500,000 of debt for newly purchased homes, but the $1 million cap will remain for current home owners.
• State and local sales and income tax itemized deductions would be eliminated and the property tax deduction would be limited to $10,000.
• Several personal deductions would be eliminated including those for medical expenses, alimony and student loan interest.
• Many education incentives would be consolidated.
• The child tax credit would be increased; and a temporary family tax credit would be introduced. The child and dependent care credit and the adoption credit would remain.
• Also, families of four or more would have fewer standard deductions and exemptions combined under the new plan which may or may not be offset by the increase in child tax credits or new tax brackets, depending on income levels.
• The estate tax exemption amount would be doubled and the rate would be lowered with the estate tax repeal not taking effect until 2024.
• The top corporate tax rate would drop to a flat 20 percent which will eliminate the graduated rates up to 35%.
• A new pass-through entity tax structure would be created, and the rules for deducting business interest would be modified.
• The individual and corporate AMT would be repealed.
• The Work Opportunity Tax Credit and many other business tax preferences would be eliminated.

These are just some of the latest changes outlined in the draft tax reform bill. We will continue to provide updates on this legislation as it progresses. If you have questions, please contact our firm.

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We are moving!

We gave away the big announcement in the headline, but we’ll say it again: We’re moving! You may have also seen our email announcing the new location for Barwick CPA, but we’re covering our bases by offering this blog post as well. It’s part of our commitment to always keep you informed.

Beginning December 4th, we will open our new doors at:

218 Fulford Ave
Bel Air, MD 21014

We’ll continue to offer the same exceptional service, just at a different location. We invite you to stop by and see our space, designed to best serve our clients and offer a rich onsite experience every time.

Come in and help us celebrate our big move. We look forward to seeing you at the new location!

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Top 3 Tips for Charitable Giving After a Natural Disaster

2017 has been a frightful year of natural disaster—from Hurricanes Harvey and Irma to the California wild fires. All of this has left many asking the question: ”What is the best way to help?”

When natural disasters of this magnitude strike, they tend to bring out the chartable side of many people. For those looking for ways to help, we’ve compiled the following list.

1. Give cash first, time and labor second, and goods third. While our first instinct may be to give clothes, food and toiletries after a natural disaster, financial donations are the most valuable form of giving. After any natural disaster, distribution channels are typically disrupted or shut down, making it impossible to get goods to those in need. If you can’t afford to give money, the next best option is to donate your time and labor such as volunteering at a shelter, doing house repairs or delivering meals to first responders.
   
   
2. Avoid one-shot donations; stagger your donations over a longer timeframe. Victims of a natural disaster take a long time to recover. It’s estimated that Houston will take several years to recover after hurricane Harvey. This is why it’s a good idea to divide donations into monthly installments that cover a year or more.
   
   
3. Avoid donating impulsively. Do the research and chose an organization that will put your donation to good use. Unfortunately, disasters bring out the con artists, so doing some research up front will help you avoid your kind donations falling into the wrong hands.

Helping victims of disaster is in our nature, but it’s best to treat charitable giving like any other consumer decision—do your homework and think it through. If you have any questions, feel free to reach out to us!

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Tips to Simplify Your Thanksgiving Spread

With just days to go before Thanksgiving, the clock is ticking down to some of the most memorable meals of the year. However, for many of us, the pressure of preparing a perfect Thanksgiving feast can be overwhelming. If this is true for you, consider these tips to simplify your seasonal spread.

Take a potluck approach. If you’re charged with feeding a houseful of guests, there’s no reason why you can’t make a meal out of shared dishes. Just be sure to ask guests in advance to bring a dish to pass so everyone has time to prepare their favorites.

Breakdown the bird. A roasted turkey, the traditional centerpiece of a Thanksgiving feast, can be an absolute beast to prepare, cook and carve. So instead of tussling with a whole turkey, try cooking just a turkey breast or a breast and some legs if you like having both white and dark meat.

Put your slow cooker to work. There’s no reason that everything you make has to involve you slaving over a hot stove. Line up a slow cooker (and ask friends and family if they can bring theirs, too) and use it to cook meat, vegetables or even mull cider.

Buy pre-prepped foods. Yes, vegetables that are peeled and cut and ready-made mashed potatoes are more expensive than doing the prep yourself. However, if you’re short on time and want to have time to visit with family, the extra cost may well be worth it.

Create a “must-have” list. The holidays are often tied to memories of specific recipes, which can make it hard to prepare everything on your traditional menu. To avoid culinary overwhelm, have family members make a wish list of favorite foods and then enlist their help to make the dishes.

The tips above can help simplify preparation of this year’s Thanksgiving meal. Remember, while the perfect turkey and trimmings are delicious, they’re much less satisfying than the time you can spend with family and friends.

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Plan Now and Take Advantage of 2017 Tax Savings

The end of the year is often hectic, which is why it’s important to take some time now to reduce your tax bill. Our firm can offer additional strategies to further mitigate your tax burden; however, the following 5 tips are an excellent starting point:

1. Defer income. Because income is taxed in the year it is received, it may be beneficial to postpone income to lower your tax obligation. For example, ask your employer to postpone your annual bonus to pay in 2018, or if self-employed, bill your clients after the end of the year.
   
   
2. Look at last-minute tax deductions. Accelerating deductions can help lower your income. Charitable contributions is one way to do this…just be sure that you have a receipt. You may also be able to take advantage of additional deductions if you plan to itemize instead of claiming the standard deduction.
   
   
3. Use loss harvesting to offset investment gains. This is an important year-end strategy for taxpayers who have low-performing investments, such as stocks and mutual funds that they can sell at a loss. Losses can be used to offset taxable gains dollar-for-dollar. If your losses are more than your gains, you can use up to $3,000 of excess loss to reduce your total taxable income, and any other losses can be carried over year-after-year for your lifetime.
   
   
4. Maximize your retirement contributions. Using tax-deferred retirement accounts such as 401(k)s and IRAs to reduce your taxable income is win-win. You can both reduce your taxable income and increase your retirement nest egg. If you are employed and have a company-sponsored 401(k) plan with matching contributions, it’s advised to contribute the maximum ($18,000 for 2017 for those up to age 49 or $24,000 for those age 50 and over). If you can’t afford the maximum, be sure to contribute enough to qualify for your employer’s matching contributions.
   
   
5. Focus on your Flexible Spending Account (FSA). An FSA allows you to use tax-sheltered funds to pay for child care and medical bills and can help save tax dollars—but only if you use the funds by the end of the year. So, be sure to review your FSA balance so you can make a plan for last-minute qualifying expenses. You may also want to see if your employer is offering the IRS- approved grace period, which allows you to spend 2017 FSA funds through March 15, 2018.

The tips above offer a few ways to save significant money by putting a tax plan in place before the end of the year. You can also schedule an appointment with our firm to develop a customized tax strategy and perhaps reap additional savings.

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Re-energize and Re-engage Your Employees

Every business, from time to time, hits a lull in employee engagement. Whether it’s the proverbial post-holiday doldrums, the tail end of your own busy season, or a case of extreme spring-fever, at times it can be tough to motivate staff and raise energy levels. So, if you are experiencing some employee disconnect, here are a few tips to put the spring back in your team’s step—and boost the productivity of your business.

Make your vision known…always
Staff like to have a goal to aspire to—and a shared vision of where your business is going can be a strong motivational force. By sharing your vision, and reminding your team periodically about the important role they play in it, you can quickly energize a depleted workforce.

If you love them…let them go (and don’t hover)
Micromanaging tends to be highly counterproductive in most workplaces. A hovering boss most often translates into: “You don’t trust me to do my work.”  Try stepping back and letting your employees’ creativity and morale soar. Offering a little freedom brings with it feelings of empowerment—which leads to a more engaged staff.

Ongoing education never hurt anyone
When it comes to energizing your team, providing periodic learning opportunities can be very effective. Giving employees the chance to sharpen their skills not only improves your business, but your willingness to invest in staff will also elevate their enthusiasm to produce superior work.

Spread the love
Encouragement is a powerful elixir for increasing employee engagement. Everyone wants to be recognized and appreciated for the work they do. So, be sure to recognize people on your team, even informally, as often as possible.

Don’t allow your business to suffer during periods of low-energy staff. Follow these tips to help keep your employees energized and engaged all year.

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Simplify Seasonal Staffing with these Smart Strategies

Whether your business needs temporary workers to get through the holiday season or you hire short-term help on a regular basis, the process of finding the right candidates can be challenging. Try applying these strategies to make seasonal staffing easier:

1. Create an ideal employee profile. Even though temporary help may not be with you long, it’s still important you find the right fit for your business. Spend a few minutes to jot down the kind of characteristics a successful candidate should possess.
   
   
2. Detail the job description. If you regularly hire seasonal or temporary staff, be sure to consistently update job descriptions based on changes in your business or to add the ideal employee profile information mentioned above. If this is your first time hiring short-term help, ensure your job descriptions are clear about specific duties and expectations.
   
   
3. Create a recruitment network. Relying on only one source to find good seasonal help can limit your potential for finding great employees. Consider creating a recruitment network including current employees, trusted referral sources, social media, local higher education institutions, recruitment agencies and online job sites.
   
   
4. Standardize your screening process. Comparing potential candidates is much easier when you have a set of standard interview questions for each position. In addition, make sure you perform appropriate background and reference checks—this will help you protect your business and avoid potential issues.
   
   
5. Invest in onboarding. You may think it’s not worth taking seasonal employees through a formalized onboarding process. However, by doing so, you’ll save time and money in the long run by not having to answer simple questions, redo work or explain how your company operates. This will also make your candidate feel valued, which is an important part of increasing productivity.

Once you’ve identified your ideal seasonal employees, you can also apply these strategies to complement your existing recruitment process for full-time employees.

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5 Tips to Reset Your Stress Response

Because stress related to work, family issues and other events is something that affects many of us, it’s important to reset your own stress response to protect your health and productivity. Sharon Melnick, Ph.D., a business psychologist, offers these tips:

Act don’t react. According to Melnick, “Stress occurs when we feel that situations are out of our control.” This feeling activates stress hormones affecting our confidence, concentration and well-being. Since you can only control your own actions and responses, Melnick advises doing the best you can to make your own actions positive and letting go of what you cannot change. 

Breathe deeply. While this advice may seem simple, it can be very effective. Simply inhale for five seconds, hold and exhale in equal counts through your nose. This practice will help you restore calmness and clarity.

Avoid interruptions. Emails, phone calls, spontaneous meetings and texts leave us distracted—but they don’t have to. Melnick offers a three-point strategy: 1) Accept the interruption, 2) Ignore it if it’s not important or relevant and 3) If it is important, make a plan to address it after you’ve completed your priority tasks.

Work when energy and focus are at their peak. Working longer than a regular eight-hour day doesn’t necessarily make you more productive. When you are constantly pushing yourself, productivity tends to decrease and stress levels increase—depleting your overall energy. If possible, do your most important work when you are fresh and energized, take breaks every 90 minutes throughout the day, and wind down your work at a reasonable hour.

Take care of yourself. It goes without saying that a poor diet, poor sleep and little exercise are going to add to your body’s stress level. So, make sure that you put some energy into ensuring that your lifestyle helps you combat the external stressors that are out of your control.

While it’s virtually impossible to eliminate stress completely, you can control your reaction to it and take steps to reduce its negative impact. Follow these tips and be well!

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Proposed Tax Reform Plan: What Could It Mean for You?

Tax reform, one of President Trump’s key legislative agenda items, is moving closer to fruition. Based on the outline of his proposed tax reform package, which he unveiled on September 27, 2017, we’ve compiled this brief overview of the President’s major tax proposals:

Individual tax changes:

• There would be only three tax brackets including one at 12%, one at 25% and one at 35%. Legislators would have the option of adding a fourth bracket as a safeguard should wealthy taxpayers be in the position to pay less than they do in the current system.
  
  
• The standard deduction would be doubled to $24,000 for married couples and $12,000 for single filers.
  
  
• Personal exemptions would be eliminated. In addition, many itemized deductions would be eliminated or modified with the exception of mortgage interest and charitable contribution deductions.
  
  
• The proposal encourages lawmakers to keep tax incentives for home ownership, retirement savings, charitable giving and higher education.
  
  
• The child tax credit would be significantly increased from the current $1,000 per child under 17 years of age.
  
  
• The estate tax and the alternative minimum tax (AMT) would be eliminated.

Business tax changes:

• The C-corporation tax rate would be lowered from 35% to 20%. The deduction for net interest expense incurred by C-corporations will be partially limited.
  
  
• Sole proprietors, partnerships and S-corporations would have a maximum tax rate of 25%. Measures will also be implemented to prevent wealthy taxpayers from avoiding the top personal tax rate by re-characterizing their personal income as business income.
  
  
• A one-time low tax rate on existing overseas profits will be offered to companies in an attempt to have them move corporate money back to the United States.
  
  
• Future international earnings will not be taxed by the United States when paid as dividends from a foreign subsidiary if the U.S. parent company owns at least a 10% stake in the foreign subsidiary.
  
  
• A lower tax rate will be implemented on the foreign profits U.S. multinational companies to discourage them from sheltering profits in overseas tax havens.
  
  
• The proposal allows for the immediate expensing of the cost of new investments in depreciable assets, other than structures, that are made after September 27, 2017.
  
  
• The Section 199 production deduction will be eliminated based on the premise that it is no longer necessary in light of the lower corporate and individual income tax rates.
  
  
• The research and development credit and low income housing credits will be retained.

If you have any questions about these potential changes to the tax code and how they may impact your tax situation or your business, please contact us.

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Living OFFline: Tips on balancing work and your personal life

It’s no surprise that business owners spend a great deal of time on their computers and mobile devices. In today’s technology-driven work world, it’s inevitable. With the ease of connectivity, it’s hard to get away from the office and truly live offline, even for short bursts of time. So much so that our work lives tend to infiltrate our personal lives more and more—creating an unhealthy balance between business and your personal down time.

Everyone needs time away from the grind to properly reenergize, which is why taking time off of work and remaining unplugged while you’re out is important. Here are a few suggestions to help you live out of the office and offline more often.

• Be your own caretaker. We often tell ourselves that we are too busy to eat right, work out, or take a vacation. If you don’t take care of yourself, who will? Stop once and a while to remind yourself to be a better caretaker to yourself. Then plan that long weekend away from the office and offline.
  
  
• Make time for nature. Let’s face it; when we’re working and glued to our devices, we’re generally being sedentary and unengaged with the world around us. Schedule a daily walk into your calendar, and if you can, take your dog or kids with you. Getting out in nature can help balance you and your life.
  
  
• Reconnect with relatives. Planning time away with family is critical to maintain work-life balance. Make it a point to reconnect with relatives you don’t see very often and plan a family vacation. Sometimes the lure of reconnecting with your kin, catching up over home-cooked meals, and conversations about “the good old days” are motivation to get away and stay offline.
  
  
• Do nothing. Part of the allure of the internet is the ease of working from anywhere. However, remind yourself that there’s nothing wrong with doing nothing. When you have those quiet moments, stay offline and just relax. Be mindful that being still with life now and again is healthy!

There’s no doubt that the internet has transformed our businesses and our lives. However, like most things, balance is the key. Take time daily—or at least weekly—to do some of the activities suggested above or to incorporate some of your own favorite offline pursuits. Chances are, you’ll find that doing so will improve the overall quality of your life.

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Impacted by the Equifax Hack? Take These Steps Now!

If you were a victim of the recently announced Equifax hack, you need to take action to mitigate any negative impact it may have on your finances and credit. If you’re not sure if you were affected, you can use Equifax’s Potential Impact tool to find out. You will need to input your last name and the last six digits of your social security number to use this tool.

Unfortunately, hacks like this one are likely to happen again, so it’s vital to prepare by protecting your digital information as much as possible. Here are some steps you can take to begin the process:

1. Set up fraud alerts with the three major credit reporting agencies (Equifax, Experian and TransUnion) to alert you if someone tries to apply for credit in your name.
   
   
2. Use the fraud alerts that are available for your credit and debit cards, if you don’t already.
   
   
3. Consider credit freezes to lock your credit files to stop any new credit information releases. This will prevent any new accounts being opened in your name by an identity thief.
   
   
4. Check your credit report. You can get one free credit report every year from all three major reporting agencies at annualcreditreport.com. It is advisable to check in every four months, using one of your “freebie” reports rather than using them all at once. When you get your credit report, look for any suspicious activity. This should be a regular part of your financial self-monitoring.
   
   
5. Consider a credit monitoring service. Equifax is offering one free year of credit monitoring. However, before signing up you should review the terms of the agreement—and those of any other credit monitoring services that you may consider.

The Equifax hack is one more reminder of how critical it is to regularly monitor your financial and personal information for potential theft and misuse. If you do suspect that your information has been compromised, contact one of the credit reporting agencies mentioned above and the FTC Identity Theft Hotline at (877) IDTHEFT (438-4338).

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Tips for Maximizing the Value of Your Next Staff Retreat

Staff retreats can offer companies a lot of value. They can also be expensive and, unless managed effectively, not particularly productive. Before you plan your next (or first) staff retreat, review the following key factors to help you make the most of it.

1. Atmosphere. From physical conditions and dress code to receptivity to new ideas, think through all aspects of atmosphere to ensure everyone is comfortable and understands that the retreat offers a safe space to share and exchange concepts and viewpoints. The right atmosphere will encourage openness and spark creativity. Also consider timing. After a long day, you may want to cap things off with social events that run into late evening. However, be sure to build in breaks and offer staff time to recharge.
   
   
2. Participation. Make sure that everyone has the chance to participate. If there are a few employees who tend to monopolize conversations or exclude others in decision making, plan for this in advance by coordinating exercises where everyone has a part to play. You may also want to assign pre-retreat homework to further encourage participation. Finally, be sure to weave in a few fun activities that further motivate people to join in.
   
   
3. Relevance. For those facilitating the retreat, make sure you’ve planned thoroughly. Activities and content must be timely and relevant to your team. Spend time on identifying clear goals and objectives for your retreat, and then build your agenda accordingly.

Report on results post-retreat

In addition to the tips above, be sure to analyze results and plan next steps to maximize the value of your staff retreat. Follow-up on action items and direction that came out of your retreat by regularly checking in with your staff on progress. This will keep your team accountable for changes required. Combined, all of these tips will help you generate the greatest value from a company retreat.

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How to Overcome the Challenges of Balancing Work, Home, Family—and School!

Adult students are returning to higher education institutions to earn degrees and professional certifications at a record pace. If you’re one of them, you’re likely to face some unique challenges related to balancing your studies with work, home, and family obligations. Here are some pointers to help you overcome them:

1. Research before you commit to a program. When you’re a younger student, you can usually choose your college on the basis of the degree program and financial support offered. The selection criteria need to change when you’re an adult to incorporate other key factors such as accessibility, flexibility, and the ability to transfer of credits.
   
   
2. Ask for guidance. If you’ve been away from school for a while, it’s very likely that the way higher education works these days is drastically different than you remember. As such, don’t be shy about asking for help when you are struggling—whether it is related to your academic work, technology, or career planning.
   
   
3. Create a routine. If you work and/or have kids, you’re probably pretty adept at juggling many things at once. Adding coursework to your already heavy load can seem overwhelming. That’s why creating a routine that blocks out specific times at regular intervals to get school work done is essential.
   
   
4. Work in downtime. Going back to school is a real commitment, especially when you have a lot of other obligations in your life. It’s important to cut yourself some slack when possible and not to overschedule your time. This will help avoid running yourself ragged and jeopardizing your success. Try to work in some downtime for at least one relaxing activity each day.
   
   
5. Reward yourself. Going back to school as an adult is an accomplishment that you should be proud of—it’s also a lot of hard work. That’s why waiting until you graduate to reward yourself is a mistake. You can boost your productivity and motivation by rewarding yourself periodically throughout your time at school.

Pursuing higher education at any age is well worth the effort. While doing so when you’re a working adult adds a new set of challenges to the equation, the above tips can help you keep on track and successfully reach your educational goals.

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Free Money-Saving Apps for Every College Student

There likely aren’t many college students who don’t have a smart phone loaded with helpful apps. However, it is unlikely that any of these apps are dedicated to helping them build their financial fortitude. This is why we created our list below—chock-full of apps designed to make it easier for college students of any age to save money.

Mint—This personal finance app from Intuit is a great tool to easily track spending and learn how to budget…and can also help cut down on calls to the “Bank of Mom and Dad.”

Square Cash—Small debts are often accrued in college, but now it’s easier than ever to make good on paying them back—or collect on them. A few bucks borrowed or lent for a beer or a latte is easily repaid or collected using Square Cash. This app allows a user to send from or receive money to their bank account with no fee.

ATM Hunter—ATM fees can add up. MasterCard’s ATM Hunter helps students locate the nearest ATM and enables them to filter locations based on hours of operation, fees and more.

mySupermarket—Using this app allows students to avoid impulse buys and find the best deals on supermarket items. The app is great for food shopping online or in a store.

Big Oven—Getting great deals on grocery items is a good way to save money, but not if food is wasted by tossing leftovers. The Big Oven app helps students figure out ways to thriftily use food they’ve purchased. The app also offers more than 350,000 recipes and the ability to manage grocery lists.

Share our list with a college student you know. It’s a great start toward managing money wisely while in school.

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Expert Advice to Keep Your Internet-Enabled Devices Safe from Cyber Criminals

Did you know that your webcam and even your home or office internet router can be the gateway through which cyber criminals gain access to your most sensitive data? If not, don’t panic—we have helpful tips below from the experts at the National Cyber Security Alliance to ensure that you head off this type of malicious action.

1. Educate yourself about maintaining the security of all your devices. We’ve all read about the need to reset passwords on our smartphones, tablets and home computers—and not to connect to unsecured networks. The same precautions should be taken with all the devices you use to connect to the web, such as web cams and routers.

2. Keep up with your apps. We’ve all done it…downloaded an app that we no longer use and allow to sit on our device. Hackers are always looking for easy ways to access data and a “stale” app is one way to do it. To prevent this, check your devices periodically and delete apps you no longer use.

3. Know what you are buying. Before you purchase any device, conduct your own research to see if it has a reputation for security issues. Look for an alternative product if the one you are considering has been compromised in the past.

4. Revisit your home and office router regularly. Cyber security experts advise that every business and home owner who uses an internet router should schedule routine maintenance for it. This is as simple as using a strong password and changing it regularly, but it’s a step that too many people fail to take—leaving them vulnerable to a cyber attack.

Take a few minutes out of your schedule on a monthly basis to keep your home and office protected by following these tips. It just might save you and your business from a costly and disruptive cyber crime.

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Tips to Improve Cash Flow for Your General Contracting Business

Cash flow is the lifeblood of any business. And it’s especially vital for general contracting businesses that require financial flexibility for purchasing materials, meeting payroll and paying subcontractors. Also consider that GCs must have cash liquidity in order to receive financing from creditors.

If you find that your business is consistently tight on cash flow, consider these tips to help you improve the situation:

• Ask your clients for deposits up front to help offset initial cash outlays for labor and materials.
  
  
• Shorten your standard payment terms to help keep the cash coming in.
  
  
• Ask your creditors to extend your repayment terms for additional breathing room.
  
  
• Offer additional payment options such as PayPal or credit cards. Any processing fees required may be worth it if it means immediate money in the bank.

These are just a few ways to improve cash flow in your general contracting business. Our advisors can help you gain valuable insight into your business and identify other ways to ease the cash flow crunch. Contact our firm today for professional assistance.

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Be Alert and Aware: Tax Scammers Don’t Take a Summer Vacation

The IRS has identified several new variations of standard tax scams involving fake tax bills and demands for payments. Many of these scams involve purchasing and transferring information using a gift card or iTunes card. Other scams to be aware of include:

Electronic Federal Tax Payment System (EFTPS) Scam
This scam involves con artists claiming to be from the IRS. Scammers call and demand immediate tax payment and threaten arrest if a payment is not made immediately by a specific prepaid debit card. Victims are also warned that they should NOT talk to their tax preparer, attorney or local IRS office until after the payment is made.

“Robo-call” Messages Demanding Payment
It is important to remember that the IRS does not call and leave prerecorded messages requesting a call back, but scammers do! According to the IRS, scammers tell victims that if they do not call back, a warrant will be issued for their arrest. Those who do respond are told they must make immediate payment either by a specific prepaid debit card or by wire transfer.

Private Debt Collection Scams
The IRS recently sent letters to taxpayers whose overdue federal tax accounts are being assigned to one of four specific collection agencies. Scammers are aware of this and are now calling taxpayers posing as private collection firms. If you receive a call like this and you have not been notified by the IRS about a tax debt, it is safe to consider the call a scam.

Protect Yourself: Know the Signs of a Scam
Given the level of sophistication and perseverance of scammers, it is sometimes difficult to determine legitimate contact by the IRS (and its authorized private collection agencies) versus ploys to get your money and personal information. Protect yourself by understanding that the IRS will:

• Never contact you initially by phone or demand immediate payment by prepaid debit cards, gift cards or wire transfers.
  
  
• Never threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for non payment.
  
  
• Never demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
  
  
• Never ask for credit or debit card numbers or other sensitive information over the phone.

Remember, the IRS will mail a bill to taxpayers who owe. And all tax payments should only be made payable to the U.S. Treasury and never to third parties.

If you are contacted via phone by a scammer this summer, do not give out any information. Hang up immediately and report the scam to the Treasury Inspector General for Tax Administration at this site or call the hotline at 800.366.4484. If you are unsure about any potential outstanding tax obligations, it is also a good idea to check with your tax preparer.

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Tips for Implementing a Successful Flex-time Schedule this Summer

Now that summer/vacation season is here, your business may be enjoying a more relaxed vibe with employees taking time off or leaving early. If you’ve ever thought about implementing a flexible work program, now may be the time to pilot one, especially if your business is a bit slower this time of year. To help, we offer the following tips:

Start with a strategy—Think through which departments and job functions can successfully work on a flex schedule. Then create a strategy that identifies which positions are suitable for flex time, the levels of flex time to be offered, and who will manage flex-time arrangements.

Make metrics matter—Studies have shown that flex-work arrangements are great for employee retention and engagement. However, these arrangements also have to support your business productivity. Be sure to identify which metrics you will track to ensure your flex schedule is beneficial for everyone.

Take a trial run—Before adopting a full-scale flex program, perform a trial run in one department or with a few select employees. This will help you work out issues related to technology, connectivity and communication—as well as help you gauge overall impact on your business before launching the program business wide.

Train your managers—Managing a flexible workforce is very different than managing employees on-site. Make sure managers know how to motivate remote and flex-time workers and understand how to best communicate with remote employees. In addition, encourage managers to hold regular meetings to keep your business on track.

Flexible work programs are a highly valued benefit for most employees. This kind of program also has many benefits for businesses, including cost savings, lower employee turnover and higher productivity. Consider using the tips above to trial your own flex work program this summer.

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Want to Work Smarter? Timing is Everything!

We all want to work smarter, not harder—all while getting the results we desire. For many tasks, however, it’s not just how you perform them, but when—and timing can make all the difference in terms of success. To help you make the most of the following common business-related scenarios, here’s some expert advice:

Momentous Meetings
Research from WhenIsGood.net indicates that only 1 in 3 employees is likely to attend a Monday morning meeting. With this in mind, it’s time to shift to a different day and time combination. Tuesday afternoon is actually one of the best times to hold a meeting because it is far enough away from the “end of the week rush” and people have had a chance to catch up on any tasks leftover from the week before.

Making a Big Decision
Researchers from Columbia Business School have found that judges hearing cases make the most consistent decisions first thing in the morning and again right after lunch, indicating that when you have to weigh your options on a serious matter, you should do so after you have eaten. If you’ve got a tough choice to make, it could be in your best interest to postpone your decision until after you’ve fueled your body and your brain with food.

Interviewing for a Plum Position
Like many things that require focus and energy, scheduling a job interview in the morning will help to improve your performance and, potentially, your rating from the interviewer. Research teams from the University of Pennsylvania’s Wharton School and Harvard Business School studied MBA applicants and found that even when job candidates were equally qualified, those interviewed last received lower scores—whether they deserved them or not.

From a single meeting to making a big decision or career move, it’s important to consider your timing. As the research cited above shows, making the right move at the right time can improve your chances of success.

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Four Money-Saving Mid-Year Financial Planning Tips

It’s almost exactly the mid-point of the year, which makes it prime time for a mid-year financial review. If you need some monetary motivation for evaluating your financial progress so far this year, you may want to think of mid-year planning as a series of potential money-saving opportunities, for example:

1. Save tax dollars by evaluating your 401(k). Take a look at your current 401(k) contributions to see if you are on track to maximize your annual contributions. Making the maximum contributions this year is not only good for your retirement fund, but will also save you money by lowering your tax bill.
   
   
2. Trim your budget. Make one or two small changes to your weekly or monthly expenditures. Skipping a meal out or your daily coffee run can save you a lot of money over the next six months.
   
   
3. Fight financial fatigue from fees. Banks and credit card companies (not to mention all those online subscriptions you have) are always changing their fee structures—which may mean you aren’t even aware of some of the things you are paying for. Now is the time to take stock and cancel or downgrade the services you no longer need. Doing so will help you reduce fees and may save you considerable money.
   
   
4. Ask about your tax estimate. You may be thinking that April wasn’t that long ago—and you are right—but the end of the year is already half-way here, and after that, you can’t impact your 2017 taxes. Now is the time to talk to our firm about your current tax situation and make any changes to increase your tax savings.

These are just four financial planning tips that can save you money before the end of the year. There are many other mid-year planning strategies that can increase your savings, too. Not sure where to start with your plan? Let us help you. Contact our firm today.

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How to Protect Your Business from the Next “Wanna Cry” Attack

The recent “Wanna Cry” ransomware attack that paralyzed several large organizations in the U.S. and Europe is a solemn reminder that the risk of cyber security breaches is real. Every business owner should take steps to assess the type of cyber security threats their business could be subject to and how to avoid them. The tips below are a good place to start:

• Don’t underestimate the risks. Many small business owners are too busy taking care of day-to-day responsibilities to keep cyber security top of mind. This is a mistake—the greatest weapon against attacks is awareness and having a plan in place to prevent them. Reinforce prevention by incorporating a plan into employee onboarding and offering ongoing training.
  
  
• Make updating software a priority process. As the “Wanna Cry” attack taught us, updating your computer software is an essential prevention strategy. Many of the infected computers at large organizations were not updated—leaving entire networks vulnerable when just a single computer was compromised. A regular schedule and protocols for updating software can help mitigate cyber security risks.
  
  
• Learn the signs of an attack and what to do about them. The most effective way to avoid falling victim to another Wanna Cry-like attack is to be aware of the type of emails that may contain ransomware or other viruses. These emails typically include an attachment (often a .zip file) that you didn’t ask for, and may come disguised as an email from someone you know. If in doubt, the best course of action is to delete the email immediately.

With the risk of cyber attacks growing by the day, it’s time to take action to protect your business. Educating your employees is key, as is updating your software on a regular basis. You may also want to ask an IT professional to help you evaluate and mitigate risk in this area.

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Key Questions to Ask Prior to Opening Your Own Physical Therapy Practice

For many physical therapists, the dream of opening their own practice is exciting and can offer tremendous personal and monetary rewards. However, it also requires a significant financial commitment and business acumen. Prior to making the leap from employed therapist to independent practice owner, it is important to answer the following questions:

What business entity will I choose for my practice?
Deciding how your business will be structured is critical because it will determine the level of legal and financial risk that you take on, as well as your tax obligations.

Will I practice in a partnership or as a solopreneur?
Having a partner who can shoulder some of the work and complement your own strengths may be a good way to start your own business, rather than going it alone right off the bat.

How will I handle my patient load and running my business?
Before you open the doors to your practice, you need to determine how you will balance serving patients while also taking care of your back-office accounting work and other administrative responsibilities. If you are starting small, you may be able to handle both and then transition to outsourcing functions such as payroll and day-to-day accounting as your practice grows.

Do I have sufficient business protection?
In order to mitigate the financial and legal risks related to owning your own business, you’ll need to ensure that you have adequate general business and professional liability insurance as well as workers' compensation coverage, if you have employees. This will help to protect your business assets and protect you from any legal action that could arise in the course of business.

Launching a physical therapy practice is a major commitment. Be sure to consider the key points above. Be sure to reach out to our firm if you have any questions about structuring your business or taking care of your back-office financial tasks.

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Tips to Help You Stem the Flow of Potential Risks This Flood Season

Whether from heavy rains or hurricanes, this time of year can bring with it the risk of floods across many parts of the United States. While you may not be able to predict the likelihood of a flood in your area, with these tips you can help to mitigate physical and financial damage if a flood occurs where you live.

1. Treat structural damage seriously. In any flood situation, the Federal Emergency Management Agency (FEMA) advises to look for any visible structural damage at the site of your home or office including warping, loosened or cracked foundations, cracks, and holes. If you aren’t sure if your home or office is safe, do not return to it until you have it evaluated by a flood remediation professional.
   
   
2. Turn off your electricity. If you experience severe flooding from a storm and power is lost, it is critical to immediately turn off the main electrical source and all individual fuse connections at your home or office to avoid electrocution. In addition, check your water, gas, electric, and sewer lines and notify the appropriate utilities if you suspect they are damaged.
   
   
3. Document any damage. Before cleaning up from a flood, be sure to fully document any damage if you plan to make an insurance claim using notes, digital photographs and video. Keep in mind, homeowners and business property insurance often do not cover flood damage, unless you have a special waiver.
   
   
4. Avoid flood-related health hazards. Flood water is often contaminated, so it’s important to protect yourself and others before coming into contact with it by using protective clothing, waterproof gloves and boots. FEMA also recommends boiling water for drinking and other uses until authorities declare the water supply to be safe.

Hopefully you or your business won’t be affected by a flood now, or in the future. However, by making note of the tips above, you’ll know just what to do if flooding occurs and how to mitigate the associated physical and financial risks.

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How to Really “Clean Up” at Your Next Yard Sale

This time of year is when you often see yard sale signs popping up. For some, holding a yard sale is a means of clearing out unwanted items. For others, it’s an opportunity to get some great “finds.” Whichever side of the yard sale fence you’re on, these tips can help you “clean up”:

Choose your timing carefully. Research continues to show early morning on Saturday is the best time for high volume traffic. If you are looking to shop yard sales, be prepared to set your alarm early on the weekend.

Tune to your local community. If you want to get the word out about your sale (or find one to go to), social media and online community yard sale listings are very effective. You can also post signs if your neighborhood permits this. Also, tell your family, friends and co-workers.

Pay attention to prices. After all the time and effort you put into your yard sale, you don’t want to be stuck with a lot of leftover items—so price your merchandise competitively. Do a little comparison shopping by looking on eBay or other auction sites to get a feel for what prices make sense. For yard sale buyers, you may want to see if the seller is willing to barter a little to get items off their hands—but be realistic, and respectful if you do this.

With these tips and a little bit of luck, whether you’re buying or selling, you should be able to really clean up at your next yard sale!

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Know the True Value of Your General Contracting, HVAC or Plumbing Business

If you own a general contracting, HVAC or plumbing business, it’s important to know its true value, not only when you are looking to sell your business, but as part of your overall financial management of it. The following are some of the important reasons to know what your business is worth at any given time. Consider that:

• Having an accurate business valuation is essential for obtaining loans from banks or other financial institutions; finalizing partnership and buy-sell agreements; and perhaps, most importantly, personal estate planning to insure the financial security of your family upon your death.
  
  
• If you are typical of most contractors, your business accounts for a significant part of your net worth. Knowing what your firm is worth can help you make informed financial decisions.
  
  
• When you analyze your family's needs for life insurance, your business value should be included in the assets necessary to provide income to your family in case of your death. An accurate business valuation will help to ensure that the life (and business) insurance you purchase is sufficient.

The value of your business is critical to decisions that affect your financial health. Our firm can provide you with an accurate valuation of your business and professional guidance to help your business succeed. Contact us today to get your questions answered.

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Take Your Spring Cleaning to the Office with These Tips

Window washing, carpet cleaning, garden grooming—these are all popular spring cleaning chores for homeowners. However, with year-end and tax season behind you, this time of year is also perfect for spring cleaning at the office. These tips will help you and your staff get—and keep—that “just cleaned my office” feeling:

Start with a clean sweep of your desk. Take an hour or two and ruthlessly cut the clutter by emptying all of your desk drawers, sorting out only what you need, and shredding or recycling the rest of your papers.

Knock-out the knick-knacks. If your desk “mementos” are covered with dust and rarely given a glance, you know what to do: take them home or, if appropriate, donate them to a charity.

Digitize your documents. If you haven’t already, move your files to cloud storage. Make a list of the documents you need to store or access on a regular basis, then evaluate your cloud-based file storage options to see which platform will best suit your needs.

Corral your online credentials. LastPass and other online password-saving applications can save you time, while also eliminating the need to keep sticky notes and paper lists of passwords on your desk.

Declutter your desk daily. Once you have invested the time to spring clean your desk and office, spend a minute or two at the end of each day to do a quick tidy up in order to preserve your pristine work area.

Spring cleaning your office is not just a feel-good activity. Studies have shown that a neat and orderly office space leads to improved productivity and efficiency, which means you may be able to leave the office a few minutes early to enjoy warmer weather or to continue your cleaning spree at home.

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These Tax Day Treats Shine Light at the End of the “Tax Season Tunnel”

With just a few weeks to go until Tax Day on April 18, it’s time to make sure that you’re on track to get your individual return filed. If you haven’t already engaged our firm to help you with your taxes and you need assistance, don’t delay…it’s time to let us know!

While tax season can be stressful, Tax Day itself can be quite rewarding if you consider some of the Tax Day freebies that are available across the country. For example, according to the website DealsPlus.com—Kona Ice, Great American Cookie, Boston Market, Target and many other businesses are offering discounts or free items to help ease the pain associated with paying taxes.

If you need a little light at the end of the proverbial “tax season tunnel” as April 18 approaches, keep these Tax Day treats in mind. You may want to check your local area for other free or discounted goodies available that day, too.

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The Winter Blues Are Real—Here’s How You Can Beat Them with Science

If you tend to feel down after the holidays—you’re not alone. According to the American Psychiatric Association, as many as 20% of Americans experience Seasonal Affective Disorder (SAD), depression brought on by the shorter days and diminishing sunlight at this time of year. Outside of SAD, many of us get a case of the winter blues or a post-holiday slump, even if we live in a more moderate climate. To help you lift your spirits, here are five scientifically proven ways to improve your outlook:

1. Brighten up your environment. One reason that we get down at this time of year is that our bodies are craving more daylight. So do what you can to lighten things up, literally. Open your blinds and curtains, get outside, sit closer to a window at work and, if you’re really feeling blue, invest in a lightbox for home use.
   
   
2. Just say no to sweets. We all know that chocolate, candy and other sugar-laden foods provide only a temporary fix when it comes to our mood. But the next time you’re tempted to get a boost from a beignet, just remember that the pick-me-up effect is temporary and indulging may ultimately increase feelings of anxiety and depression.
   
   
3. Say yes to exercise. Research has proven that even mild exercise can help you feel better. Case in point: A Harvard University study suggests that walking fast for about 35 minutes a day five times a week or 60 minutes a day three times a week improved symptoms of mild to moderate depression.
   
   
4. Turn on the tunes. Along with exercise, research has shown that listening to upbeat music can significantly improve your mood in both the short and long term. So turn on your favorite songs—you’ll feel even better if you do so while exercising.
   
   
5. Pay it forward. While you may feel like huddling in your home, doing some community outreach or volunteering is a better bet because studies have shown that it can help to improve mental health and life satisfaction.

The days may be shorter and holiday bills may have forced your credit cards higher, but don’t let this time of year get you down! Try some of the tips above to help you get the bounce back in your step well before spring arrives.

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Do You Sit All Day? Take a Stand Against a Sedentary Lifestyle

The average American sits a lot. Many of us sit while we work, while we relax and while we learn. Over the long term, this sedentary way of life can have a negative impact on our health, increasing the risk of diabetes, heart disease and cancer—in addition to shortening life spans. To counteract these negative effects, it’s important to get up, get active and get moving!

Even if you engage in a formal exercise program, it’s usually not enough to reverse the negative health effects of sitting most of the day, but it is a big step in the right direction. If your physician clears you to exercise, try doing a daily workout or at least exercise as often as you can throughout the week. Then use these tips to incorporate more movement throughout your day:

• Set a timer to get up every 30 minutes and stand, walk or stretch.
  
  
• If you sit at a desk, try a standing desk.
  
  
• Swap out your chair for an exercise ball to engage your muscles.
  
  
• Use part or all of your lunch break to take a walk.
  
  
• Walk places that are within a reasonable distance instead of sitting in a car.
  
  
• Use the stairs; they require extra effort, which helps to improve your health.
  
  
• Instead of fast forwarding through commercials when you watch your shows, use this time to take a break from sitting.

Taking a stand against excessive sitting may take a little bit of effort, but it will add years to your life and make you feel more energized while improving your health.

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Set the Stage to Help Your Home Sell This Spring

Spring is in the air...which means peak home-selling season isn’t far away. In fact, according to recent market data, 60 percent of all home sales in the United States will occur in the spring and summer months. If you’re thinking about putting your home on the market, now is the time to get prepared—which includes considering how you will “stage” your home to make it more attractive to potential buyers. These tips can help:

• Cleaning your home thoroughly is one of the most important things you can do to stage it effectively. If you don’t have the desire or time to clean, it’s worth hiring someone to help you.
  
  
• Pay special attention to sprucing up the interior and exterior of your home’s front entrance to make a great first impression.
  
  
• De-clutter all rooms and consider putting excess furniture and other items into storage.
  
  
• In addition to visual appeal, don’t forget to make your home smell good. Use sweet, but subtle, air fresheners or set out freshly baked goods, like cookies or muffins, to create that comforting smell of home. Your visitors will appreciate the treats as well.
  
  
• Be sure that the exterior of your home offers that all important curb appeal. This is especially true during the spring and summer months when plants—and weeds—are growing. Keep your lawn manicured and clean up outdoor clutter.

The aim of staging your home is to make it memorable to potential buyers—in a good way. Home buying is often an emotional process and, according to real estate experts, buyers often decide within the first minute of a home showing if it is “the one.” Use these tips to bring out your home’s full market potential.

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Avoid March Madness—Why You Should File Your Taxes Now

For sports fans, this time of year is an exciting one. First the Super Bowl, and then the buildup toward the NCAA March Madness tournament. While tax season isn’t quite as exciting as these events, you’ll still want to make the effort to get ahead of the game—and the April 18 deadline—to score the benefits of early filing.

Avoiding identity theft.
Filing your tax return early helps you sidestep criminals who want to steal your sensitive information. With identity theft related to tax returns on the rise, this is an important early filing benefit. Once your return is filed with the IRS, your social security number is locked, preventing it from being used again by someone other than yourself.

Dialing down stress.
One obvious benefit of early completion is crossing it off your to-do list and avoiding the prolonged anxiety that comes with the approaching tax deadline. Beat the “March Madness” and “April Angst” of last-minute tax filing for your business and individual taxes by having us file them for you now.

Expediting any potential refunds.
If a tax refund is in your future, the earlier you file your taxes, the sooner you will see your refund check. Keep in mind, the IRS reports some delays are expected this year for filers claiming the Earned Income Tax Credit or the Additional Child Tax Credit.

Maximizing all deductions.
Filing early allows us to have the time required to prepare your return and research all the tax deductions you may be entitled to. Starting the return process earlier gives you more time to gather your supporting paperwork and get any additional documentation you may need to claim a deduction.

Having time to pay outstanding tax bills.
If you owe taxes, filing early gives you time to save for payment if needed. It also removes the last-minute element of surprise—you’ll know exactly where you stand with the IRS.

Ready to tackle your taxes and take advantage of these early-filing benefits? Start uploading your tax documents to your portal today, or contact our office for assistance.

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Small Businesses Can Restart Health Reimbursement Accounts in 2017

Although the fate of the Affordable Care Act (aka Obamacare) is not yet clear, thanks to the passing of the 21st Century Cures Act at the end of 2016, employers with fewer than 50 employees can now start funding stand-alone health reimbursement accounts (HRAs) again. Employees can use HRAs to pay for medical expenses, including health insurance coverage on the Obamacare health insurance exchange market.

Until this year, employers were not allowed to offer stand-alone HRAs under the Affordable Care Act because they didn’t meet credible coverage rules. Now employers can restart stand-alone HRAs, and if they failed to halt them despite the Obamacare mandates, they will also receive retroactive penalty relief. However, there are some new regulations related to HRAs that business owners should be aware of including:

• A new limit to annual employer contributions of $4,950 for employee-only coverage and $10,000 for family coverage.
  
  
• Employees cannot contribute to these HRA accounts, only employers can.
  
  
• HRA funds can be used by employees to pay for insurance premiums or bills from physicians.
  
  
• The Obamacare premium tax credit will be reduced dollar for dollar by the HRA amount if an employee uses both.
  
  
• Any HRA reimbursements for health insurance purchases which fail to satisfy the “minimum essential coverage” requirements of Obamacare for will be considered income for employees.

For more information about the rules related to the reintroduction of HRAs, please review the Department of Labor fact sheet here.

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Tips to Defend Your Business from Cyber Attacks

You need only tune into the news to see that cybercrimes are a very real threat. From viruses to malware, everyday computer use and online browsing can leave you vulnerable to hackers who want your valuable information. If you have a small business, your risk of a cyberattack is likely even higher, especially if you do not have the resources or know-how to enact effective security policies. In addition to engaging an IT professional to help you identify and mitigate your cyber risks, consider using these tips from Entrepreneur.com to keep your business safe:

1. Analyze your email security to identify potential threats. If you’re not protecting your company emails and other electronic communications with encryption, you should. This will make it harder for hackers to succeed in accessing your data.
   
   
2. Do the obvious: Install malware, spyware and firewall programs. There are many good, cost-effective software programs you can use to protect your business from incoming cyberattacks such as those made by Malware Bytes, McAfee and Norton. Part of the protection plan for your business should be to install these programs on every work-related computer to help catch and eliminate threats.
   
   
3. Power up your password policies. Passwords are your first line of defense against cyber criminals, so make sure that you and your employees know how to use them effectively. While using longer, complex passwords and changing them frequently may be a bit of a hassle, it’s a crucial strategy for avoiding a devastating cyber attack.
   
   
4. Train your employees to recognize suspicious online activity. It’s definitely a good idea to school yourself on how to avoid being a victim of a cyber attack, but unless you’re a solopreneur, you need to make sure that your employees know how to protect themselves and your business, too. Be sure to provide formal computer and online security procedures and information that will help your staff spot and stop potential threats before they do damage to your business.

Protecting your company against cybercrimes is an absolute must in today’s business environment. Use the tips above to help you get started and be sure to reevaluate your cyber protection plan at regular intervals to defend your business against new and emerging threats.

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Break Barriers in 2017 with These Mind-Changing Mini Resolutions

There’s a reason why the regular New Year’s resolutions like losing weight, exercising more and sticking to a budget are popular—so many of us need to do them! There’s also a common reason why so many of us fail to meet our goals in these areas: we haven’t developed the mindset to support the changes that we want to make.

Instead of setting a big, audacious goal right now, consider making some of what Jacob Geers of the ThoughtCatalog.com terms “mini-resolutions.” They’re little changes that can have a big impact on your mindset, and which can ultimately allow you to break the barriers holding you back from reaching bigger goals, such as losing 25 pounds this year. Here are a few examples:

1. Get enough sleep. If you think sleep is a waste of time, consider that most people need between 7 and 8 hours a night to operate at peak performance. Getting less sleep can cause you to overeat, make poor choices when it comes to dealing with stressful situations, and just be plain cranky.
   
   
2. Just say “no.” If you’re always taking on one more thing to help other people out, you may be sabotaging your own health and happiness in the process. Being more mindful about how you spend your time will give you the opportunity to do things that will move you closer to your own goals.
   
   
3. Take a social media holiday. Research has shown that heavy use of social networks can actually cause feelings of negative self-worth, which is counterproductive in making good on self-improvement resolutions. Taking a break from social media will also free up your time to focus on your goals.
   
   
4. Give yourself space. It’s amazing how much calmer, in control, and focused you’ll feel if you simply give yourself a little time and space to connect with nature, or even just allow some extra breathing room between meetings and other obligations. This can have a positive impact in other areas of your life which may need some tweaking, too.

While these mini resolutions may seem too small to make a difference at first, once you try them, it’s likely you’ll find yourself feeling more ready and energized to break down the barriers that lie between you and achieving the bigger goals you have for this year.

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Keep the Holidays Merry with These Simple Stress Relievers

The holiday season can be wonderful, but they can also be one of the most stressful times of the year. Fortunately, the experts at Psychology Today also offer these simple stress relievers to put the joy back in this special time of year:

1. Take a time-out. Time-outs aren’t just for toddlers who have a tantrum. In fact, rather than being a punishment time-outs (a.k.a. quick relaxation breaks) can be a positive addition to calming adults with frenetic schedules. So, when you feel overwhelmed during the day, do one to five minutes of a relaxing activity to restore your sense of calm.
   
   
2. Opt for optimism. If you find yourself getting annoyed with friends or family over the holidays, try to shift your negative thoughts to positive ones. This can help you view the situation at hand with gratitude instead.
   
   
3. Fit in fitness. Even if you are tight on time, squeeze some exercise into your schedule. You will feel better and calmer if you get your body moving. Even just a 20 minute walk once a day will help you keep stress at bay.
   
   
4. Eat smart. Okay, easier said than done this time of year, but if you make a concerted effort to control your portions and balance your diet, you will avoid sugar crashes and the other negative effects of overdoing it on holiday treats. This will not only help to stabilize your mood, but it will keep your energy up, too.
   
   
5. Make a ‘to-do’ list—then cut it.  Writing down all that you have to do during the holidays can be overwhelming, but it can also help you realize how do-able your tasks are. Be realistic as to what you put on your lists. Then lighten your load by cutting items that are not absolutely necessary.
   
   

It’s easy to become overwhelmed by economic and social pressures to live up to unrealistic expectations for what you are supposed to do, give and feel during the holidays. Use the tips above to help you beat seasonal stress and truly enjoy this special time of year.

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Obama’s New Overtime Pay Rule is On Pause—What Does it Mean for Your Business?

Just days before it was scheduled to be implemented on December 1, a federal judge in Texas has blocked the implementation of the new Department of Labor (DOL) federal overtime rule, which would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay. According to an NPR report, this extension of overtime eligibility would have affected 4 million Americans and required employers to pay time-and-a-half to their employees who worked more than 40 hours in a given week and earned less than $47,476 a year.

Lawsuits objecting to the overtime rule were filed by 21 states, the U.S. Chamber of Commerce, and other business groups concerned about the negative impacts of the legislation on businesses—including higher payroll costs and reduced staffing flexibility. The DOL plans to challenge the decision and argues that the new rule would have helped to offset income erosion due to inflation and that the rule would deliver fairer pay to lower-wage employees who are currently exempt from overtime pay. The DOL also stated that the salary level was set purposefully low to screen out obviously nonexempt employees such as executives and higher-level professionals.

Although the overtime extension rule will not take effect in December, it could still be implemented in the future. Employers should continue to follow the existing overtime regulations until a final decision is reached. For those employers who have already raised exempt employees’ salaries to meet the new threshold or who have reclassified employees who are still earning less to nonexempt status, the Society for Human Resources Management (SHRM) recommends leaving such decisions in place because they would be difficult to reverse. However, employers may want to postpone making any further moves until a final ruling is made.

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Take Note of New Business Tax Deadlines in 2017

As a result of the highway funding extension bill signed into law by President Obama in 2015, there are important changes coming in 2017 to deadlines for business tax filings including:

1. W-2 and 1099 filings are due January 31 in 2017 instead of March 31. These forms are still due employees and contractors by January 31, so it’s important to prepare and file them early if possible.
   
   
2. S-corps, partnerships, LLPs and multi-member LLCs filing Form 1065 must file by March 15 or the 15th day of the third month following the end of the organization’s fiscal year. The previous deadline was April 15. Extensions are available for up to six months, filed no later than September 15, 2017.
   
   
3. C-corps filing Form 1120 must file by April 15 (previously March 15) or the 15th day of the fourth month following the end of the organization’s fiscal year. Extensions can be filed no later than September 15. After 2026, C corporation extensions will be available for up to six months after the initial due date.
   
   
4. Trust and Estate filing Form 1041 the extension due date has changed from September 15 to September 30.
   
   
5. Exempt organizations filing Form 990 now have only one extension until November 15.

If you have any questions about the above changes please do not hesitate to contact our office.

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Five Key Areas Every Business Owner Should Review Before Year End

We’re well in to the fourth quarter of the year, which means year end is fast approaching. Here are five important areas of your business to review before the calendar turns to 2017.

1. Tax planning opportunities. November and December are prime time for tax planning, which can pay big dividends when filing time arrives. Touch base with our firm now to reduce your business tax obligations as much as possible.
   
   
2. Payroll. Make sure you have all information updated, employees are properly classified, and that you are in compliance with all payroll regulations. Plus, you’ll want to ensure that all employee information is securely stored.
   
   
3. Cash flow. As you well know, cash flow is the lifeblood of your business, so if you’re having trouble controlling it, now is the time to analyze why and ask for assistance if needed.
   
   
4. Estimated tax payments. If you've paid estimated taxes throughout the year, review your totals so that you have the information on-hand for tax season and you can make up any shortfall before the end of the year.
   
   
5. Your overall progress. Take a step back and consider if you have met your annual projections for profitability and growth. If you’ve gotten off-track it’s time to make a plan to rectify the situation. If you’re satisfied with where you are, take time to lay out next year’s plan.

By reviewing these five areas now, you’ll be able to lower your taxes, reduce potential payroll-related penalties, and have a good handle on how to move your business forward in the coming year. If you need any help in the process, please contact our firm.

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Start Holiday Gift Giving for the Kids with an IRA Contribution

If you’re like many parents and grandparents, you may already be thinking about what kind of gift to get the children on your list this holiday season. For teens and young adults especially, it can be challenging to come up with truly unique and meaningful gifts. One idea with long-lasting impact is to make a contribution to either a traditional or Roth IRA on your children or grandchildren’s behalf.

IRS rules state that the maximum that can be contributed to an IRA each year is the lesser of the child’s earned income or $5,500 (the 2016 limit for an individual under age 50). So if your child or grandchild already has an IRA, you’ll need to know if they’ve already contributed to it this year.

If your child or grandchild does not have an IRA account already, you’ll need to decide on the type of IRA you would like to use for your gift (i.e. a traditional or Roth IRA). Traditional IRA contributions are tax deductible with taxes paid when the funds are withdrawn at retirement. Conversely, Roth IRA contributions are not tax deductible. However, the distributions, including earnings, are tax-free at retirement.

As long as your contribution to an IRA is below the annual $14,000 gifting exemption, it is not subject to any gift tax unless you give additional reportable gifts throughout the year. Keep in mind that such a contribution will not hold any benefits for you on your own income tax return.

If you have questions about an IRA holiday gift for your children or grandchildren, please contact our office.

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Don’t Let Year-End Cost-Cutting Derail Your Business Goals

Many businesses need to adjust their spending to meet the reality of their cash flow during the last few months of the year. While it can be tempting to just cut expenses across the board, this strategy may actually backfire if you cut in the wrong places. Here are four budget areas you should try to preserve to avoiding derailing your long-term business goals:

1. Marketing—It’s one of the easiest things to cut, but doing so will eliminate your ability to grow. The smarter strategy is to continue doing the marketing initiatives that bring you results so you don’t miss opportunities to gain new customers.

2. Training—Instead of eliminating employee education opportunities, look for cost-effective options such as online training or in-house peer-to-peer training to reinforce skills. Regular training is especially important for frontline employees who can make an immediate difference in maintaining and winning business.

3. Safety—Cutting your budget should not mean increasing the risk for workplace injuries or creating an unsafe work environment, which can expose your business to potential workers’ comp claims. Consider safety an “untouchable” area when it comes to budget cuts.

4. Quality—Another area where shortcuts should be avoided is your product and service quality. Reducing resources to the point that it affects your end product is not going to help drive more business—in fact, it may have a significant negative impact on sales.

If you keep these four key expense areas steady, how can you make up budget deficits? The best way is to look at all of your expenses, line by line, and identify unnecessary or hidden costs that can be eliminated. It’s also important to maintain an in-depth view of your financials throughout the year—not just when your budget is tight—so you can take proactive steps to avoid future cash crunches and keep to financial goals.

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Wondering About Tax Deductions for Political Contributions? Here’s the Lowdown

With election season in full swing, you may be wondering, “Are political contributions tax deductible?” Here’s the lowdown:

Whether it’s your county mayor or the future President of the United States, the rules on taking advantage of tax deductions for political contributions are the same: Donations are deductible if the organization you give to is a 501(c)(3) tax-exempt charity. This means that the organization you give to must have tax-exempt status, which is a special designation obtained from the IRS, in order for you to claim a tax deduction.

Many political organizations are automatically disqualified from this status. For example:

• Any donation to a political party, campaign, or action committee is non-deductible.
  
  
• Other non-deductible contributions are those to individual people, labor unions, business associations, for-profit schools, for-profit hospitals, foreign governments, and fees paid to associations or state or municipal governments.

Despite these rules, you can still reap the benefits of a tax deduction if you support 501(c)(3) tax-exempt political organizations that are non-partisan, in compliance with IRS guidelines on charitable contributions. Such organizations are allowed to communicate with politicians to ask them to make an issue a priority and educate them about why they should do so.

The bottom line: While you can’t make a tax-deductible donation directly to a candidate or campaign, you can make a tax-deductible donation to an organization that lobbies candidates about issues that are important to you. Just remember that in order to reap the benefits of a tax-deductible contribution, you’ll need to itemize the deductions on your tax return.

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Take Note! The Filing Deadline for W-2s and 1099s is January 31 in 2017

Consider this blog post as early notice that the date by which employers must file their W-2s and 1099s with the Social Security Administration (SSA) and IRS will change to January 31 in 2017.

Previously, W-2s and 1099s were not due to governmental agencies until March 31, so this new deadline will significantly reduce the window for making any necessary changes. These forms are still due to the recipient by January 31.

In order to meet the new deadline, it is important to keep your payroll and employee information as up to date as possible. Please keep in mind that if our firm will be filing your W-2 and 1099 forms, we will need your data in a timely manner in January. Additionally, if you are notified of any incorrect information contained on these forms, it will need to be corrected right away.

The new filing deadline for W-2s and 1099s represents a significant change and makes it imperative that payroll and employee information is accurate and up to date. If you have any questions about this information, please contact our office.

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The World is Chipping Away at Credit Card Fraud—But Individual Vigilance is Still Key

EMV chip technology, which is the first major upgrade for credit card fraud protection in many years, is slowly being rolled out by merchants around the world, including in the United States. While this technology has the potential to provide better security for your credit card data, it still has its limits and it is not completely hacker-proof or secure. As such it is still important to be vigilant about protecting your personal information and your credit card whenever you use it. A few key points to keep in mind:

• Double check the whereabouts of your credit card often. This may sound silly at first, but the instances of people forgetting their cards in credit card terminals and bank machines is actually increasing according to industry sources (partly because chip card processing takes a little longer), so try to remember to take your card back after leaving a store so that it doesn’t get stolen….and double check that your credit card is in your possession on a regular basis.
  
  
• Create account alerts. If someone does get unauthorized access to your credit card information, you’ll want to know asap. Most financial institutions and credit card companies have free text message and email notifications that can alert you to suspicious account activity so please, sign up!
  
  
• Take data breach notifications seriously. With so many stories in the news about retail data breaches, it’s easy to tune them out. However, according to AARP (American Association of Retired Persons) 1 in 5 data-breach victims suffered fraud in 2015, up from 1 in 7 in 2014. Clearly, this is a growing problem and you should take any news or notices of a breach where your card has been potentially compromised seriously and take the actions recommended by authorities to avoid losses.

Payment industry research shows that more than $16 billion was lost in worldwide credit card fraud in 2014 and 48 percent of the losses occurred here in the United States, making it more important than ever to keep tabs on your credit card and use the tips above to avoid having your credit card and other sensitive information compromised.

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Before the First School Bell Rings, It’s Time to Reset the Alarm Clock

It’s August and children and parents everywhere are facing a grim reality: back to school season is just around the corner. At this time of year, many parents struggle to get their kids back into a regular sleep routine. To help, we offer these tips to reset your family’s alarm clock before the first school bell rings:

1. Start tonight. While child health experts advocate keeping children on the same sleep schedule all year, the reality is that over the summer break many kids get up and go to bed later than usual. It generally takes three weeks to adjust to a new sleep routine, so start now.
   
   
2. Stay strong. Set regular waking and sleeping times, then stick to them. Most kids and teens need at least 10 hours of sleep a night, so take this into account as you establish your routine.
   
   
3. Eliminate evening electronics. While you may think that playing games on a phone or tablet is relaxing, it can actually stimulate children and disrupt bedtime routines. Establish a time when electronics must be put away each night and don’t allow them in bedrooms.
   
   
4. Set a good example. It’s harder for kids to stick to a routine if they see their parents doing otherwise. While you may not want to go to bed at 8 p.m., you can still set a good example by participating in a more low-key nighttime routine and not staying up until all hours.

Now is the time to start settling into a more school-friendly sleep routine. By making it a priority now, it’s more likely that everyone will be well-rested as the school year starts.

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Getting Married this Year? Here’s Your Tax Tip Sheet

While most couples go to great lengths to ensure that their wedding day is perfect, far fewer think about how their nuptials will impact their tax liability. The truth is, the moment you get married, no matter what time of the year it is, in the eyes of the government you are considered to have been married for the entire tax year. With this in mind, here are some tax tips to consider as you prepare to walk down the aisle:

• A prenuptial agreement may impact your filing status and complicate your tax filing, so you may wish to speak with a tax professional.
  
  
• Once you combine incomes, you and your spouse may be subject to a higher tax bracket. This may eliminate tax benefits for which you were previously eligible.
  
  
• If marriage involves a name change for either party, contact the Social Security Administration to advise them and to get your Social Security card and records updated. This helps avoid delays in the processing of your tax return or potential refund.
  
  
• Review your current withholding and estimated tax payments in light of your new marital status. This will help you avoid any unexpected tax bills next tax season.
  
  
• The Affordable Care Act (ACA) may complicate your tax filing if you and/or your new spouse purchased health insurance through the ACA marketplace because any premium tax credits you have received may be impacted.
  
  
• If your new spouse owes child support or back taxes to either the IRS or the state, they may become your obligation unless you complete the IRS’ injured spouse allocation form.

Don’t let tax stress put a damper on your big day. Take a few moments to talk about taxes with your partner before your wedding, or schedule some time to consult with one of our professionals after the honeymoon.

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Key Lessons from the Financial Fallout of the ‘Brexit’ Vote

It’s fair to say that the recent ‘Brexit’ vote by Britons to exit the European Union (EU) has shaken global financial markets to their core, at least in the short-term. Financial analysts say that it’s too early to tell what the long-term impact of this historic vote will be. But one thing is for certain, the Brexit offers several important lessons that individual investors and business owners can take to heart as they review their own situation at mid-year.

1. Prepare for the unexpected. One of the reasons why the Brexit vote has people and the financial markets so on edge is that it was unexpected. No one really thought that the ‘Leave’ camp would actually win the referendum. Well, they did…and no one is prepared to handle the situation. This is not a pattern that you want to repeat with your own finances. If you do nothing else, plan ahead for unexpected shifts such as job losses or your child not getting a full-ride scholarship for college.
   
   
2. Take a long-term view. Many experts agree that the Brexit is going to create some short-term financial pain. However, things are likely to stabilize and, hopefully, improve over time. This is an important tenet for any investor or business owner to follow for their own financial sanity and planning. Working with a financial professional who can offer guidance and an objective perspective based on their experience and market data can be invaluable in this regard.
   
   
3. Seek the support of allies. In the days immediately after the Brexit vote, Britain no doubt felt somewhat ostracized by the rest of the EU. However, once the initial shock wore off, it rallied the support of its usual allies to determine what the next steps would be in the process. The parallel for individuals and businesses: having a financial advisor in your corner can help you work through difficult decisions and challenging circumstances to find the best solutions.

It is likely to be years before we know how the Brexit will affect the financial strength of our domestic and world markets. This makes it more important than ever to keep the above tips in mind, and to consider doing some proactive mid-year planning to protect your own individual and business finances this year, and in the years to come. Need help with your mid-year planning? Contact our firm today, we look forward to assisting you.

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Smart Strategies to Handle the “Downfall” Problem 1 in 4 New Businesses Experience

One of the most (if not the most) important indicators of business health is its cash flow. Even if your business is profitable and growing, if you don't have a consistent stream of cash coming in, you'll run into financial trouble. Lack of cash flow is the primary reason that more than one quarter of new businesses fail—29 percent to be exact. Here are some smart strategies that can help ease the cash flow crunch.

1. Reduce your business overhead. While this may seem obvious, trimming fixed costs is something that many business owners overlook, getting stuck in a this-is-how-we've-always-done things rut. Take a fresh look at your operations with the goal of maximizing efficiency.
   
   
2. Be proactive about securing credit. If you wait until you're financially strapped before you line up credit sources, you may be in for an unpleasant surprise (e.g., you can't get the credit you thought you could or the credit you can get is too expensive). Know how you can secure funding before you need it.
   
   
3. Know your numbers. This is so important—you should have a dashboard of key performance indicators that you follow closely so that you can head-off any cash flow issues before they happen. You can use a DIY approach with business accounting software, or work with our firm to keep you on track.
   
   
4. Encourage quick payments. An essential key to cash flow management is to keep the cash coming in from customers. Aside from keeping your invoicing current, consider incentives such as early payment discounts on large invoices or discounts for cash payments when appropriate.

With the stakes so high in today’s economy, it's not surprising that many new businesses struggle with cash flow issues. However, by implementing the strategies above and working with our professional team, you'll have a better chance to keep the cash coming in and your business going strong.

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IRS Fights Scammers – Instructs Staff to Initiate All Future Audits by Mail; Never by Telephone

With a rise in IRS phone scams, the Agency changed its policy on contacting taxpayers whose tax records are subject to an audit. The new policy instructs IRS agents to contact affected taxpayers only by mail—never by phone (which used to be the IRS’ go-to method of contact). As such, we urge all of our clients to adhere to the following guidelines should you receive a call from someone claiming to be from the IRS and you’ve NOT received a contact letter prior:

• If you receive a phone call that you suspect to be a scam, hang up right away. If you receive multiple calls, try to record them and turn the recordings and any other related information that you have over to the IRS and local law enforcement.
  
  
• If you receive emails claiming that the sender is from the IRS, save the emails, do NOT click on any links or open files contained within the email, and forward these emails to the IRS at: phishing@irs.gov.
  
  
• Never share your personal information over the phone or by email with someone claiming to be from the IRS. The IRS will never e-mail or call you to ask for this type of information or to ask you to send money right away.
  
  
• Protect your personal information. Any type of documentation that contains your sensitive data is a treasure trove for tax thieves and identity scammers. Keep documents containing your Social Security Number, bank account numbers, and other sensitive information in a secure location. Electronic forms should be stored on a password-protected or encrypted external drive or disk.

If you have any questions about the risks related to tax and financial scams, please contact our office.

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No Time to Garden? Try These Time-Saving Tips

While many of us appreciate the glory of a beautiful garden, there’s no denying that having one is a time-consuming endeavor. That’s why we’ve compiled these tips to help you make the most of your yard in less time:

1. Start with a plan.
A well-thought-out plan for your garden that utilizes low-maintenance plants and flowers will save you time throughout the season. You can even map out what you are going to plant while you’re watching Netflix!

2. Take out weeds with ease.
When low-growing weeds grow into a mat, don’t spend time taking them out one at a time. Instead, use a sharp spade to slice beneath them and turn them over to bury the leaves, which will decompose, enriching your soil.

3. Water without wasting time.
Don’t spend time filling a watering can—use soaker hoses instead! Set the pressure on low to slowly irrigate sections of your garden while you do something else.

4. Garden-on-the-go.
Make every minute you are outside of your home count! Use the time when you let your dog out or your kids are waiting for the bus to pull a few weeds or dead-head flowers. This will cut what could be a long weeding and maintenance session on the weekend into more manageable mini-sessions throughout the week.

Whether you have a green thumb or not, use these tips and you’ll have more time to enjoy a beautiful yard—and the other things you like to do.

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Overtime Pay Eligibility Expanded – What Businesses Need to Know

President Obama, declaring that “Americans have spent too long working more and getting less in return,” ordered the Labor Department to revise federal rules on overtime pay for salaried workers that log more than 40 hours a week. The long-awaited rule change will extend overtime pay to an estimated 4.2M workers.

Under current federal regulations, only salaried employees who make no more than $455 a week, or $23,660 a year, are guaranteed to receive overtime after working more than 40 hours a week. The new rules would raise that threshold to $913 a week, or $47,476 a year, giving salaried workers who are higher up the income scale the ability to work less or earn more for long hours.

The ruling also establishes a mechanism for automatically updating the salary and compensation levels every three years.

You can find detailed information on this new ruling on the United States Department of Labor website: https://www.dol.gov/whd/overtime/final2016/index.htm

Please feel free to contact our office if you have questions.

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Sleep on This! Think Quality Not Quantity When It Comes to Shut-Eye

We’ve likely all heard the news—Americans are incredibly sleep-deprived. However, according to recent research, achieving better quality sleep may be more important than actually increasing the number of hours of sleep. In fact, experts report that 6 hours of deep refreshing sleep is more beneficial than 8 hours of light interrupted sleep.

May is Better Sleep Month, so with that in mind, consider the following ways you can improve the quality of your sleep and reap the benefits of improved health and productivity:

• Establish a consistent sleep schedule by sleeping at the same time each day of the week (including weekends).
• Before bed, relax and limit any stimulating activities such as exercise and work.
• Avoid alcohol, nicotine and caffeine close to bed time, as they can disrupt sleep.
• Make the area where you sleep dark, well-ventilated, and at a comfortable temperature.
• Remove any distractions such as computers, mobile devices and televisions from your bedroom.

The key to better sleep is to create an environment that supports these habits. It may take a few weeks to do so, but the effort is worth it!

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Be $1,000 Richer by Next Year with These Simple Savings Strategies

Wow! May is already here—and if you’re like many Americans your savings account balance is still stuck where it was at the beginning of the year. So what to do? You can’t make up for lost savings opportunities…or can you? We believe that you can with a little bit of discipline. For example, saving $125 a month can be as easy as:

• Renegotiating your mobile phone, cable and other subscriptions.
• Reducing the number of takeout meals you consume.
• Relying on yourself to clean your home or mow the lawn instead of paying for third-party services.

Try these and a few more simple tips for saving serious dollars over the course of the next eight months and you can easily save at least $1,000—which you can deposit directly into your savings account for a kick start to your 2017 financial goals.

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5 Actions to Reduce Cyber Liability Risks in Your Business Today

A quick glance at the news is all it takes to realize that the threat of cyber attacks is increasing for businesses. So how can your business beat the odds and avoid becoming another victim of cybercrime? Try putting the following five action items at the top of your priority list:

1. Encrypt your data. Whether it's bank routing digits, credit card accounts or employee social security numbers, company-held information is what hackers use to steal money, so make sure it is adequately encrypted.
   
   
2. Secure your hardware. Obviously, cyber criminals use the internet to steal information, but others may actually try to steal physical hardware as well. To prevent this, make sure your business has a security system and physically lock down your computers (to desks) and servers (behind controlled-access doors) to make it harder to remove them from your premises.
   
   
3. Secure your network. Unlocked Wi-Fi networks are like an open door to your company’s data. One solution is not to have Wi-Fi at all at your company. The more practical solution may be to disable the service set identifier (SSID) broadcasting function on the wireless router. This creates a cloaked or hidden network, invisible to casual Wi-Fi snoops and accessible only to users with the exact network name.
   
   
4. Install anti-malware and anti-virus protection. Email phishing and apps that access social media accounts are popping up with increasing regularity. Loading anti-malware and anti-virus protection on your computers and mobile devices can help protect your business. In addition, keeping programs and hardware updated is key.
   
   
5. Educate your employees. If just one computer on your network becomes compromised, your entire operation is at risk. Employees are your first line of defense, so make sure you educate them about what to look for and what to avoid (a formal internet policy can help) to keep your business secure.

The risk businesses face from cybercrimes is greater than ever. Implementing these tips will help you mitigate risk and ensure that your company avoids a potentially devastating data breach or other malicious acts, which can compromise both security and business viability.

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Final Check – Did You Claim Every Eligible Tax Deduction?

Every year, American taxpayers leave millions of dollars on the table for Uncle Sam—in the form of unclaimed tax deductions. With Tax Day just around the corner, it’s time to do one final check to make sure that you are not missing out on three of the most common deductions:

• Retirement contribution deductions for single-income couples and the self-employed. It’s not too late to open an IRA account and make a contribution for a non-working spouse or yourself if you’re self-employed to gain an additional tax deduction—plus some additional retirement funding. Simply do it before the tax deadline and keep in mind the maximum annual contribution is $5,500 per person, or $6,500 for people 50 and older.
  
  
• Sales taxes on big ticket items. Tax law allows individuals to deduct the larger of the amount paid in either state income tax or sales tax. While you should check the specific rules for your state, it’s worth checking this potential deduction out, especially if you made a major purchase such as a new car, truck or boat in 2015.
  
  
• Deductions for charitable contributions. Many people contribute to charities throughout the year and incur out-of-pocket expenses. This includes clothing donated to a local shelter or miles driven (14 cents per mile deduction) while volunteering for a charity. Just remember you need a receipt for any contribution over $250.

If you have yet to file your taxes, consider asking your tax professional if you qualify for any of these deductions and take that hard-earned money off the table so you can put it back in your pocket!

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Five Snacks to Spring Clean your Body and Mind

Spring is here and the season for new beginnings. This is a good time to re-think "spring cleaning" and choose snacks that can cleanse our bodies from the inside out.

These five snacks are guaranteed to feed your mind, detoxify your body, and satisfy your palate!

1. Guacamole - High in fiber and “fat” but don’t worry, it’s good fat! Spread it on toast or eat it with veggies. This fruit is not only delicious but contains a ton of antioxidants and glutathione, a nutrient that can block up to 30 carcinogens and detoxify your liver.

2. Kale chips - Kale is king. It’s loaded with antioxidants, vitamins, and minerals and boosts metabolism while providing cancer fighting compounds. Baked Kale chips satisfy the “crunch” we all crave and taste delicious.

3. Raw almonds - Almonds are the perfect grab–and-go snack. Almonds are rich in vitamins and minerals such as magnesium, which helps break down glucose into energy.

4. Greek yogurt - Greek yogurt has fewer carbohydrates and sugar while boasting more protein than other yogurt. It’s a great source of vitamin B12 and potassium, which helps to decrease blood pressure and muscle cramps while increasing energy. Try plain yogurt and add your own fruit or a drizzle of honey.

5. Dark chocolate - Sometimes chocolate is the only thing that will satisfy your craving, so you might as well give in. Dark chocolate is one of the best sources of antioxidants on the planet, plus it has half the sugar and four times the fiber of milk chocolate. Choose 70 percent cocoa content or higher for optimal antioxidant benefits.

Whichever of these snacks you choose, planning ahead is the key to success. Make time to pack your snacks in portion-controlled containers and bring them with you so that when hunger strikes, you aren’t left having a face-off with the vending machine.

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Make Your Spring Break Worry-Free with These Home Security Tips

If you’re packing your bags for a spring break getaway, take a little time before you leave to implement the tips below—they’ll help keep your home safer while you’re gone, and free your mind of worry so that you can truly enjoy your trip.

1. Tell your neighbors that you will be away. Inform your neighbors and friends of the dates that you will be gone and ask them to keep an eye out for any suspicious activity around your home.
   
   
2. Clean up the kitchen. Dispose of any food that will spoil and take out the garbage and recycling. Any food left in the trash or even the sink can rot and may even attract unwanted, four-legged animal or insect scavengers into your home.
   
   
3. Turn off the water. If you live in an area of the country where your pipes might freeze, or if you’re concerned about a plumbing leak occurring while you’re gone, it’s a good idea to turn off the water while you are away so you can avoid a potential indoor flood.
   
   
4. Invest in simple security measures. These easy and inexpensive security tips can make your home more secure: install a light switch timer that can turn your house lights on and off on a schedule; park a car in your driveway to make it look like you’re home; make sure all windows and doors are locked before you go; and just to be safe, put valuables away out of plain sight.

Spring break should be a time to get away and relax, not to be worrying about your home. With these tips, you’ll be able to reduce your risk of theft or damage occurring at your residence, and have peace of mind as you travel.

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Tax Season is Scam Season... Keep Your Information Safe!

The IRS has joined with industry and states on a public awareness campaign to provide taxpayers with easy tips to better protect themselves. For some quick tips, you can watch an informative video here.

Tax-related identity theft occurs when someone uses your stolen Social Security Number to file a tax return claiming a fraudulent refund. To prevent becoming another victim of identity theft, the IRS has compiled the following tips to help keep you safe:

1. Don't carry your Social Security card or any documents that include your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
2. Don't give a business your SSN or ITIN just because someone asks. Give it only when required.
3. Monitor your financial information regularly, including your credit report. You can get a free report yearly at annualcreditreport.com, and several financial services now offer free monitoring at any time.
4. Review your Social Security Administration earnings statement annually.
5. Secure any personal information kept in your home.
6. Protect your personal computers by using firewalls and anti-spam/virus software, updating security patches and changing passwords for Internet accounts.
7. Don't give personal information over the phone, through the mail, or via the Internet unless you have initiated the contact or you know who you are dealing with.

If you have any questions about the security of your tax information, please contact our firm.

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Identity Protection PIN Letters List Incorrect Tax Year

According to a recent IRS notice, due to an error, taxpayers are receiving Identity Protection (IP) PIN letters with an incorrect year listed. If you received the CP01A Notice dated January 4, 2016, be aware that the PIN contained in it is valid for use on all individual tax returns filed in 2016.

The IRS notice incorrectly indicates the IP PIN issued is to be used for filing the 2014 tax return when the number is actually to be used for the 2015 tax return.

If you have any questions, please contact our office.

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Getting Over It… Quick Tips for Beating the Post-Holiday Slump

It’s a stark reality that millions of us face once the holiday season is over: the post-holiday slump. Even just a few days off can make coming back to the office seem excruciating—there’s all that work to do, the anticipation and cheer of the holidays are gone, and for many people the next vacation day is a long way off. Yes, being a working adult is tough, but getting over the post-holiday slump doesn’t have to be with these tips:

Keep the special treats coming. There’s no reason to go cold-turkey on self-kindness just because the holidays are over. Why not savor a festive mug of hot cocoa instead of coffee at your desk? Or bring that nice hand cream you received as a gift to the office and use it when you need a little pampering during the workday.

Flex your schedule, if possible. You know when you’re most productive and energized at work… so try not to fight your natural rhythm. If you’re not as perky first thing in the morning, see if you can start your workday a little later and rejuvenate with some extra sleep. If you like to get things going early, take advantage of this energy and get a head start, then leave a little earlier if you can.

Lighten your load a bit. The start of the new year often means a renewed sense of urgency to get things done. To avoid feeling completely overwhelmed and cranky, try to pace your schedule so that you have time to breathe and get things done as opposed to running from one meeting to the next.

Get on with your goals. If you find it hard to resume the regular routine after the holidays, try to respect your feelings while avoiding getting mired down in self pity. You may find that reevaluating your professional goals can be quite energizing. Break down your objectives into manageable tasks and, “Just do it!” Sometimes getting started is difficult, but once you have momentum you’ll recapture your pre-holiday mojo.

Transitioning back to post-holiday can be tough, but as we all know, all good things must come to an end. So be kind to yourself—and your co-workers—ease back into your regular workdays and tackle the goals that will make 2016 one to remember!

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Customer Service Goes Social—Is Your Business Prepared?

If your business engages in social media, you may have noticed an uptick in the number of customers who are posting questions on your Facebook page, tweeting comments or engaging with your company on other social platforms looking for customer service support. It’s a trend that is affecting just about every type of business—and using social media as a customer service channel will continue to grow in the future. So prepare your company to handle social customer service effectively with these tips:

1. The number one way to preserve your company’s reputation in the social sphere (and beyond) is to continually monitor your social media channels so that you can respond swiftly to questions and comments—especially the negative ones.
   
   
2. Create a Frequently Asked Questions (FAQ) section on your company’s website and link to it in your social media profiles (i.e. the “About” area that is available on many social platforms). This will provide an easy way to for customers to “self serve” and for you and your staff to refer customers to “standard” information when needed.
   
   
3. When it comes to negative comments (and you are likely to receive them no matter how great your business is), no matter how you feel about the complaint, you need to respond publicly, professionally, and immediately. Your objective should be to try to diffuse the situation by acknowledging the customer’s feelings and then to encourage a resolution in private by asking the customer to direct message or email you. Don’t engage in a debate on social media…that will only hurt your business.

Just like in other customer service scenarios, consistency and professionalism are key when you're using social media for customer service. Keep this in mind as you prepare yourself and your team to implement the tips above and master social customer service!

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IRS Simplifies Filing and Recordkeeping for Small Business – Hooray!

In an ongoing effort to keep you informed of IRS changes, we have a new and important one to report. And this time, the change eases your filing burden.

Within the last month, the IRS significantly simplified the paperwork and recordkeeping requirements for small business by raising the safe harbor threshold for deducting certain capital items from $500 to $2,500. This applies to money spent to acquire, produce, or improve tangible property that would normally qualify as a capital item.

The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.

For more detail on this new change, please read the full IRS article here.

And, as always, contact our firm if you have questions. We are here to help!

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Tis the Season! Avoid Common Holiday Scams with These Tips

As cybercriminals begin to take advantage of the holiday season, it’s important to take extra precautions to avoid having your money, credit card information, social security number, or identity stolen. E-commerce thieves, at this time of year especially, will try to create holiday-related websites, scams, and other phishing e-mails that can trick even the most alert consumers. The following tips can help:

Don’t let your generosity leave you vulnerable to criminals. Many cybercriminals want to take advantage of your generosity by sending e-mails that appear to be from legitimate charitable organizations. Do not click on links in any such email—instead, go directly to the website of charities that you know and trust to make a legitimate online donation.

Make sure things are really signed, sealed, and delivered. During the holidays, cybercriminals often send fake email invoices and delivery notifications appearing to be from Federal Express, UPS, or the U.S. Customs Service. These e-mails may ask for credit card details or require users to open an online invoice or customs form to receive a package. Such actions can result in stolen information and/or malware being installed on your computer. It is best to check with the specific delivery service directly before answering these emails.

Stop before you shop. It’s important to think about where you are doing your holiday shopping—even if it’s online. You may be used to shopping on your tablet or phone, but if you’re doing so on an unsecured Wi-Fi network or an open hotspot, a hacker can easily steal your personal information…so wait until you get home to shop online.

Be merry and wary when doing festive online searches. It’s sad but true. During the holidays, hackers often create fraudulent holiday-related websites based on popular searches for holiday ringtones or wallpaper, Christmas carol lyrics, or festive screensavers. Downloading such files may infect your computer with spyware, adware, or other malware, so be careful in your quest for holiday fun online.

While it pays to be vigilant about protecting your personal and financial information all year round, it’s especially important to do so during the holidays when criminals are counting on us to be hurried, distracted, and more active online. Use the tips above to help prevent being the victim of an unexpected holiday cybercrime.

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The Key to Scoring on Black Friday? Create a Pre-Game Plan

The countdown is on to the what retailers hype as the best shopping day of the year—the day after Thanksgiving dubbed by Americans as ‘Black Friday’—represents the kick-off to the holiday shopping season. However, given the explosion of retail competition and the Internet in the past several years, Black Friday is really not what it used to be. And if you’re not careful, you can end up spending more than what you planned on poor quality merchandise.

The key to scoring real deals is to go into the holiday shopping season with a pre-game plan. Retail analysts offer this advice: Do the homework by researching deals and create a game plan in advance. In addition to the copious number of direct mail and email offers you’re likely receiving now, don’t forget to checkout social media for exclusive deals as well. Then make a list of the absolute best deals on the items that you need to check off your holiday gift, décor, and entertaining lists.

The bottom line is that while you can certainly find some great deals on Black Friday, you need to be aware that much of the advertising is just hype—so don’t let it overtake your logic when it comes to your spending. Set a Black Friday budget prior to heading out to the stores or to your favorite retail websites, stick to your list, and take a moment to think through your purchases before making them—but by all means, take the opportunity to score some big savings if given the opportunity!

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It’s Tax Planning Time—Here Are Some Money-Saving Tips for Individuals and Businesses

With just a few short weeks to go before the end of the year, it’s important to take a look at your tax situation and consider ways to decrease your tax obligations. In other words, it’s time for tax planning. We put together the following tips for you to support smart tax decisions:

1. Stay apprised of potential tax provision extensions. Congress still has time to extend some popular tax provisions before the end of 2015, so keep an eye out for news on provisions including (but not limited to): taxpayers 70.5 years and up can make tax-free charitable contributions, businesses can deduct half of eligible equipment placed in service, and more!
   
   
2. Track the time you spend on business activities. Business owners may be exempt from the 3.8 percent Medicare tax on business income if you are active enough in the business to avoid being a “passive investor.”
   
   
3. Keep on top of information reporting. Make sure you complete your mandatory reporting on time this year to avoid potentially large penalties.
   
   
4. Make good on your state and local tax obligations. Remember that State and local governments impose their own filing and payment responsibilities with income, sales, and property taxes to avoid added penalties.
   
   
5. Accelerate deductions and defer income. When it comes to taxes, you want to accelerate deductions and defer income. How? Consider deferring bonuses, consulting or self-employment income; also consider accelerating state and local income taxes, interest payments, and real estate taxes.
   
   
6. Do you anticipate a tax shortfall? Take care of it with increased withholding. Check your withholding and estimated tax payments now while you still have time to fix the issue. If you face an underpayment penalty, you can eliminate the shortfall by increasing withholding on your salary or bonuses.

Our firm can help you take an in-depth look at your current tax position, explain how changes to the tax code will affect you and your business, and help you implement strategies to reduce your tax bill. Contact us today so you can benefit from advance planning this coming tax season.

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Our New Website!

Barwick CPA is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.

Take a moment to look around our new website and review some of our advanced features, like our Client Center. The Client Center is designed to provide you with a highly secure and convenient web-based tool to access your financial documents, data, and collaborate with our firm in real time.

We hope you like what you see. It’s the same great service, just with a new look and feel. We look forward to hearing your feedback.

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4 Steps to Finding the Sweet Spot for Success

Ah, the sweet smell of success! Achieving goals and bringing our vision to fruition is the end-game for most of us, especially in our business lives. Unfortunately, success can sometimes elude us to the point where we have to start looking at what, exactly, is going wrong. Perhaps, though, the question we ought to be asking is this: What is going right? By honing in on what is bringing you or your company the results you want, instead of focusing on the things that are taking you further from where you want to be, you can discover your sweet spot—the place where you can find true success.

So how do you find your sweet spot? We’ll get to that in a minute, but first, let’s define what we mean by sweet spot. The sweet spot (for an individual or a business) is the intersection of the things that you are good at and come (relatively) easily to you or your team, and the things that the market (or an employer) is willing to pay for.

Finding your sweet spot as an individual professional and as a business owner is important because it allows you to operate with efficiency, strength and, usually, profitability. Surprisingly, many people and even entire companies continue to struggle without ever finding or leveraging their sweet spot. If you haven’t found your sweet spot yet, then now is the perfect time to start looking by following these four steps:

1. Cultivate your core competencies
Finding your sweet spot is really an inside job. It’s not about trying to add to what you have, it’s about leveraging your existing core competencies. You (or your business) made it this far, so you must have some valuable competencies that you can leverage into a viable career, company, or new product or service.

2. Seize on your strengths
Making a list of what you love to do (or what your company does well and profitably) is a great way to hone in on your strengths and identify your sweet spot. Maybe you love to design websites, create winning proposals, sell, write, do financial analysis, or sew cushions—whatever it is, it’s likely something that can lead you to your sweet spot. The other important thing to keep in mind is that you need to match up your strongest skills and talents with market demand. For example, while you may love to crochet potholders, the market may not support building an entire empire on that one activity alone.

3. Listen to your fans
Do people always tell you that you have an aptitude for art? Or do your customers rave about the unique flavors of cupcakes that your bakery only offers periodically? Make notes about what people praise you or your business for—and chances are, the exceptional things that others notice likely reside at the center of your sweet spot.

4. Start seeing your sweet spot
Now that you’ve identified your core competencies, your strengths, and the things that you are objectively good at (according to your fans), put them all together and start seeing where your sweet spot lies. Once you do this, consider if there are things that you are innately good at that can be monetized (i.e. people have a need for what it is you provide and will pay decent money for it). Once you have these figured out, create a plan to bring them to market. (Or, if you’re an individual, highlight them on your resume.)

If you’re seeking success and it seems to be eluding you, consider working toward identifying your sweet spot…the place where the things that you (or your team) are good at and the things that the market (or an employer) is willing to pay for come together in sweet harmony. While it may take a little bit of work on your part, the dividends of doing something you truly love and are well-suited for will be well worth the effort.

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