Joplin & Springfield Real Estate Investor Association

“A lot of talented actors still have to pay their bills.” - Mark Wahlberg

Sometimes it seems like bills come through the door as much as customers do … And knowing which bills to pay in which specific order can be difficult. 

And just like some customers are worth more than others to your small business, some bills need quicker attention than others as well. You put things in priority order for your company every day. You should do the same for your expenses. 

We’ve got some thoughts on how to do that. 

Which bills to pay first and why

You’ve heard about keeping the lights on? It’s true. Whether your business relies on the internet, machinery, handwashing, or heating, your utility bills have to be near the top – if not always first – on your pay list.

You also need a place to work – there’s no debate if you arrive at the office one morning and find the door padlocked. Pay your rent. 

Now for bills that can have wiggle room (but precious little of it): 

1. Taxes. Fines and penalties are the stick for taxes. Fail to pay property or income taxes, fail to remit the sales or payroll taxes you’ve collected, and government action will be swift. Pay taxes, because they’re not going to go away. Also remember that what you collect from federal payroll taxes – Social Security and Medicare – and state sales and income taxes does not belong to you, no ... Read More…

“Like mothers, taxes are often misunderstood, but seldom forgotten.” - George Bramwell

Who doesn’t love extra cash? These days, a lot of people need to work more to make it. Call them hustles, gigs, second jobs, or part-time on the side… They all amount to additional employment for a few extra bucks. 

Extra bucks for Uncle Sam, too, in the form of taxes. The government wants those dollars – and sure isn’t shy about coming after them with new rules and new powers of enforcement.

Here’s how to protect yourself. 

New tax and reporting

Almost half of working Americans – some 70 million people – report having a side hustle; tens of millions more want to get one. Lots of extra cash flying around? Not really: A lot of respondents to a recent survey said they make only a couple hundred bucks a month from a side job. 

Too bad there are 12 months in the year. 

Starting in 2022, IRS rules require reporting income for some transactions of just 600 dollars (way, way down from previous levels). The American Rescue Plan Act of 2021 made sure you’re going to get an IRS Form 1099-K if you sold goods or services via platforms like eBay, Etsy, and Uber and if that platform used third-party transaction networks such as PayPal. 

Technically, there was always a good chance you’d get a tax form (and have to declare as income) money that you received for work, no matter how small. This new rul ... Read More…

“There is no victory at bargain basement prices.” – Dwight Eisenhower

Prices are on the rise everywhere right now. What about yours? 

From just a few pennies to outright sticker shock, hiking prices is one of the quickest paths to losing customers. But you’ve got ends to make meet, too. 

Our inflation series continues with one of the most pressing problems for businesses today: How much you need to increase your pricing models – and what to think about before you do. 

Worry and response

Current inflation is 8.6% year over year, a seemingly endless upward direction that worries most businesses. Almost nine out of 10 have told surveys that they’re also already seeing the hit in higher expenses such as supplies and services, some by as much as 50%. Throw in employees probably wanting above-average raises and you’ve got a compound problem. 

Businesses’ response? Not hard to guess: Almost nine out of 10 small businesses in one survey said they had to hike their own prices – and that’s on top of the hefty percentage that'd already raised their prices since the pandemic started. 

The key question is, raised prices by how much? 

Almost half of businesses had to increase prices by more than 20%; almost half said they kept the increase to no more than 15%. Some companies that haven’t increased prices in years have had to pass along furious new costs to potentially furious old custo ... Read More…

“To contract new debts is not the way to pay old ones.” - George Washington

In the age of virtual currency, rising inflation, and online shopping, helping your teenager get their feet under them when it comes to money seems like an absolute necessity. 

So, wouldn’t it be great if you could pry your teen from perma-scrolling TikTok and Snapchat long enough to teach them a few things about money? However, you might be surprised to find that one great money education tool for them (or anyone) is having a credit card.

Yep, you heard that right. Giving your teen a credit card could really help them learn a few things about money and managing it.

Think about it: You have to handle paying the balance and watch your spending when it seems effortless (at least until the bill arrives). You learn the ins and outs of interest, credit scores, and paying off a tab over time. It’d be tough to find a better money teacher than that. 

Obviously, this is going to mean some hard work and lots of one-on-one time to keep them from going off the deep end, but it might just be worth it. 

So, let’s jump a little deeper into why you should give your teen a credit card.

They grow up so fast

You may think they’re still a baby (as a parent, it’s hard to let go), but your teen is one step away from adulthood and is likely no stranger to credit cards already (note: 18 is still the minimum age to get a credit card). Recent su ... Read More…

"You don't pay taxes – they take taxes." - Chris Rock

Up till now, whatever you made on eBay, Etsy, and the like might have seemed like tax-free cash. But now, the IRS will be in the know more and more regarding those sales… and that’s something you’ll want to keep in mind going forward.

Lowering the limit

Rules that were in effect until this month said that if you sold goods or services via platforms like eBay, Etsy, and Uber and if that platform used third-party transaction networks (think PayPal), you received a federal tax document called a 1099-K, and your income was reported to the IRS.

Thing is, you didn’t get that form unless you had at least 200 transactions worth a combined twenty grand or more.

Now, that limit’s been lowered.

Payment apps such as PayPal, Venmo, Zelle, CashApp, and other third-party e-payment networks will start using the 1099-K to report your business transactions to the IRS if you reach $600 or more annually. (That’s a lot less than 20k!) This expanded reporting is part of the American Rescue Plan recently signed into law.

Yikes. With inflation on the rise, an Etsy business could fetch that much hawking a few of its antique and handmade wares.

But don’t panic yet. Let’s go through this a step at a time...

A big deal?

First of all, this isn’t a real tax change. It’s a tax reporting change. You were always supposed to report all income you received from on ... Read More…

“Americans: Time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta.” - Dave Barry

On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act into law. You’ve probably heard of it as the trillion-dollar-plus infrastructure bill. It has a lot to do with bridges, roads, drinking water, climate improvement, public transit, and internet broadband. It’s being called a “once-in-a-generation” law, and, yes, it is big news.

A few of the new law’s tax provisions are high-flying: extending some highway taxes, tinkering with taxes for superfund sites, and allowing bonds for some broadband projects and climate-friendly facilities.

There’s also a provision to extend relaxed funding requirements for employer-sponsored retirement plans. (We can tell you more about that one.)

But the Act also tweaks taxes you and your business might pay. Let’s take a look at some of the biggest changes.

Credit discard

The Infrastructure Act will have a big impact on small businesses that planned to take advantage of a popular pandemic-related tax break.

The Employee Retention Credit (ERC) was a real goody, a tax credit for a big chunk of the wages paid by companies that the pandemic clobbered on the bottom line.

Now, this break is ending early. Maybe too early.

The ERC wasn’t supposed to say goodbye until Dec. 31st but got an early sendoff on Sept ... Read More…

"The only person you are destined to become is the person you decide to be." -Ralph Waldo Emerson

Successful people rarely reached the top without a lot of help along the way. The ability -- and willingness -- to ask for help is one trait that really stands out among those who are truly committed to success. You find these people at your local Real Estate Investors Association https://nationalreia.org/find-a-reia/

Personally, I've been approached a number of times by tax and accounting "up-and-comers" I and have seen this done the right way ... and the wrong way. Whether it's your boss or another entrepreneur, here are some tips for seeking advice and connections from those who get asked for this all the time:

• Do NOT waste their time. Once they've agreed to help, get to the point quickly. Don't go through your life story in excruciating detail, nor spend an hour explaining your business plan or the plot of your novel. Plan what you want to ask so you can make a clear, succinct request.

• Be as specific as humanly possible. Don't just ask, "What should I do?" Imagine you can ask only one question (because that may be the case). Identify the most important issue you're facing that your expert is qualified to address and build your question around that. You may get a chance to ask a follow-up, or to move on to another subject, so be prepared, but don't assume you'll have all the time in the world to get to what you need.

• Save one general question for the end of your ... Read More…

“Life isn’t about finding yourself. Life is about creating yourself.”  - George Bernard Shaw

Based on what I've seen in my work with local businesses, here are the basic business mistakes people make when starting and operating a small business. These are by no means an exhaustive list of business mistakes, merely the most common -- and eminently avoidable...

• Not having a CLEAR business plan.  A good business plan will guide you through the first few months and years of your business. It should contain metrics that help you monitor costs as well as progress.

It doesn't have to be fancy, or even something that would hold up under an investor's scrutiny (though, certainly, if you're going down that road, go the extra mile and make sure it's good). But it does have to give you a roadmap to the goals you should be hitting by certain points -- 3 months, 6 months, 12 months.

• Doing everything yourself.  Even in a one-person operation, you'll have your hands full. If you're not able to hire employees, at least be ready to outsource the tasks that aren't integral to your daily operations.

In this way, of course, you free yourself for the highest-level activities, such as marketing and sales.

• Targeting the wrong market.  Nothing takes the place of solid market research before you launch your business. Find out who needs your product or service, where they are, what they expect to pay for it, and whether there are enough customers for you to survive.

But the BEST w ... Read More…

“Life isn’t about finding yourself. Life is about creating yourself.”  -George Bernard Shaw

You'd probably be surprised if you sat in on some of the meetings I have with certain tax planning and preparation clients.

This is by no means the majority of my clients, but there are some who have socked away a significant nest egg ... but who are bored, tired, and a little numb.

And, of course, there are those among my clientele who have not yet reached the financial (or otherwise) zenith they've been working so hard towards, and they are still stuck in the grind of "everyday living". They spend hours reading the "news" and tilting at windmills on Facebook, and then they wonder: where is all this time that others seem to have to build their career?

In many instances, they haven't taken the time to re-assess whether or not what they're shooting for is, in fact, the place where they will be most alive.

They haven't taken the time to dream. And, more importantly, they haven't put a concrete plan to whatever dreams they might have had in earlier days. They're dragged around by their nose by national events and whatever circumstance comes their way.

Maybe "they" is you?

So here's what I suggest ...

Get a piece of paper and make a list of all the things you want to do during your lifetime -- no matter how crazy or undoable some of those things might seem. If you want to go on an African safari and become a famous gorilla researcher, then write it down. If you want to sip coffe ... Read More…