Multitasking is a myth that has come to an end. Doing too many things at once does not improve productivity, and doesn’t make for high quality work or experiences. It can cause a lot of stress on individuals and cost businesses money. The problem is, many people still see multitasking as a virtue. You’ll even see job descriptions that say “must be an accomplished multitasker.”
This is a huge mistake. Why do you think there are so many mistakes at the drive thru these days? Go observe how these employees must work. They have to listen to the order, input it into the computer, while counting change for another person at the checkout while also getting drinks for the next order.
There Is No Such Thing as Multitasking
People think they are multitasking but all they are doing is dividing their time between different tasks at the same time. Thus they are giving less attention to each task, which can result in more stress and less positive results in everything they do.
Trying to Multitask Makes You Crazy
Not only will it reduce your IQ during the time you’re trying to multitask, it will also make you feel as if you can’t do anything right. Our brains aren’t made for multitasking in the manner we try to do it these days.
It Reduces Productivity
Many proud multitaskers think that they can do so much at once, and get more done. However, studies show a reduction up to 50 percent in productivity when you multitask. This is huge when you consider how much more you could get done if you just focused.
It Lowers Quality
People who multitask may think they are doing a good job, but it’s been proved (as Forbes.com has reported) that the quality is reduced by up to 40 percent when multitasking and not focusing on one thing at a time.
It Causes Stress
Anyone who has a job that requires multitasking, or who forces multitasking on themselves by trying to divide their focus, will experience stress and feel as if they have no down time. For example, try turning off your phone when with your family. Your heart will thank you.
It Can Be Life Threatening
The stress that builds up when multitasking and doing everything essentially half way can actually affect your health. If you want to avoid high blood pressure and stomach issues, stop trying to multitask.
It Makes You Forgetful and Absent Minded
On a good day, most people have trouble to remember things without a calendar. But if you are trying to multitask, you’ll notice that you have trouble with short-term memory.
You Can’t Experience Life Fully
Honestly, you want to live your life in such a way that you can be proud that you’ve done the best that you can do. It doesn’t matter if it’s work, home life or other relationships with friends; giving each your all while you’re with them is important.
If you have a habit of trying to multitask when you are working, spending time with your family, or just watching TV, try to find a way to concentrate on just one thing at a time instead. See if you don’t do better, feel less stressed out, and get more out of it too.
Unfortunately, there is no escaping payroll tax. It's something that you will need to deal with from the day that you get your first job until the day you retire.
If you own a business and hire employees, you'll need to make sure you're taken the proper amount out. Let's dive in to what it's all about, how to figure it out, and what it means to you.
Payroll tax is the amount of money that comes out of your paycheck each and every pay day for the various services that you need to pay for. And, there is even a specific tax that is for the use of payroll as well. Hey, you know what they say, nothing is certain except death and taxes.
If you're a business owner, then you realize that you will need to take care of these payroll tax needs for your employees. The problem is that you cannot possibly take care of that information for your employees on your own.
You need various types of help in collecting it, figuring it out, and keeping track of it. While this is quite difficult in most cases, the good news is that there are some excellent payroll tax software programs and bookkeepers (raising hand) who can help you and cut down on the various needs that you have.
Payroll tax software is a great way to make sure that you are getting the right information as well. There is nothing worse than making the wrong payments or not following through on something that you are responsible for, for other people. Payroll tax software can help you do what you need to do effectively and do it right the first time and a professional bookkeeper can get the software set up correctly from the beginning or adjusted if it's not correct.
Whether you are updating your payroll tax or if you are looking for a new option to consider for your new business, having the right payroll system in place is important.
You'll find a wide variety of options available to you on the internet, or contact us for a free consultation on what we recommend and how we can help you with payroll taxes.
Take some time to talk search the options available so that you'll find just what you need. You will find both basic and very complex programs, but it's critical to get one that's set up and designed just for your business and it's needs. And, you'll find these all available in budget-friendly options as well. Payroll tax is something we can't avoid but it doesn't have to be that difficult either!
Want to learn more about the reasons for payroll taxes and what that money is allocated to? Read this article.
If you are running a home business, it is important to remember that there are tax deductions for you when tax season rolls around. Of course, you do not want to try to fool the IRS (no one wants to run the risk of being audited!), but you do want to take advantage of those deductions that are rightfully yours. Running your own home business takes much of the same expenses, effort, time, space, equipment, and travel as any other business. Below are some home business tax deductions to remember before tax season is upon you.
If you have a home office that is dedicated solely to your home business, you can add it to your list of home business deductions. The same goes for phone charges, office supplies, furniture, software, subscriptions, and other equipment. Don't fear an audit for making these home business tax deductions as long as these items are used exclusively for your home business.
If your business requires you to leave your home office, you can add the cost of travel, mileage, meals, entertainment, and anything else that goes along with the cost of living on the road to your home business tax deductions. During the year, make sure you keep documentation of your mileage, your trips, food, etc.
Now, what about the really big stuff? Well, when making home business tax deductions, you can also take into consideration insurance premiums (if you are self-employed and pay for your own insurance), the money you deduct for retirement, and half of what you pay towards your social security. And if your children are seventeen or younger and are working for you, you can deduct their salaries as business expenses.
This is just a quick scan of the home business tax deductions you can take advantage of. For more information, check out www.bankrate.com, or contact us to handle your bookkeeping and we'll keep you in the loop on what's deductible in your situation.
Starting a business can be quite trying at times. There are many things you must consider when starting a business. In addition to deciding what type of business you will start up, what the business will sell or what services the business will provide, you must also make sure that your business is in compliance with all local, state, and federal business laws.
In addition to a business license, required by almost all localities in the United States, a new business must file many tax forms at the start of the business.
If you are selling a product, your business will need to file for retail sales tax licenses. Depending on the location of your business, you may need to file for a retail sales tax license from your city, county, and/or state. If you are selling a service, and your state or city requires sales tax for services, your business will also need these forms.
Another thing your business will need to file for is a federal tax identification number. This number is used on all tax documents for your business. It may not be required if you will be the only person working for your business. However, if you plan to use subcontractors or employees, you will need a federal tax identification number in order to pay your contractors or employees. This is required by the federal government so that wages paid can be tracked by the IRS for purposes of collecting income taxes.
Some cities require that individuals and businesses pay a local income tax in addition to state and federal income taxes. You should find out if your business will need to pay this type of tax, and what the filing requirements are for your location.
Many businesses are required by law to file quarterly federal income taxes. If you are a smaller or home based business, these quarterly tax payments are not necessary by law, but can prevent you from owing taxes at the end of the year.
If you are not sure whether or not your business should make quarterly tax payments, you should contact a professional accountant to answer these and any other questions. If your business does need to make quarterly tax payments, you will want to obtain the necessary forms for your business taxes from the IRS prior to starting your business. Become familiar with the forms and the processes, and organize yourself so that your business runs smoothly after start up.
There are many other considerations when starting a business. You need to make sure that your business follows all business laws applicable to your type of business. Some industries and businesses require additional licensing. Other industries require additional insurance to be purchased. Workman's Compensation insurance is required by federal and most state laws if you have any employees. Some states require a business to carry liability insurance to cut down on law suits, while in other states this type of business insurance is optional.
Make sure you know the legal requirements for starting a business before you actual begin doing business. This way, you will be compliant with all local, state, and federal business laws, thereby cutting down on your risk of running a business as well as cutting out the possibility that your business could be shut down before it has ever truly begun.
Want to make a smooth transition when starting your new business? Let a professional bookkeeping team set up your books properly from the beginning. Give us a call and let us know how we can help you.
When you enter into a working relationship with others, it’s very important to have a contract. Each contract will vary greatly depending on the type of services you provide, but in general, every contract needs these basic components.
Detailed Description of the Services You Will Provide
It’s essential to very clearly describe the services that will be provided. The more detail you can put in this part of the contract, the fewer misunderstandings will occur. This is very important, especially if you are charging on a per-project basis instead of only hourly. You don’t want scope creep to ruin any profit-making potential.
Complete Description of the Relationship between Both Parties
This is the area where you mention the nature of the business relationship, in terms of whether or not you are an independent contractor or an employee. Spelling it out here will protect both parties from IRS issues later. However, keep in mind that acting like an employee/employer, no matter what this section states, is what the IRS really cares about.
Responsibilities of the Service Provider
Spell out in great detail which dates you’ll have the work completed by, and what your responsibilities are to the client in regard to getting the work done. How will it be submitted to the client? What constitutes finished work? Be very specific in this area. It will help protect you as well as help you feel done each day when you know what constitutes "finished."
Responsibilities of the Client
Spell out what the client must do so that you can do your job. For example, state that the client must get you the information you need by a certain date each month, and say how the client should contact you when they have questions. Be very specific and exact in this section so there is no mistake about what the client needs to do to ensure that you can do your work in a timely manner.
Important Due Dates
Restate the important due dates for both sides of the client/service provider equation. The reason you want to state this again is that it’s an essential component in being able to work together cohesively without issues. These dates will ensure that it all happens without a lot of back and forth or problems.
How Payment Will Be Processed
State how and when you will bill the client and how and when you expect the client to pay you. If you want to be paid via Paypal then you should say so, otherwise, they may not be prepared to pay you this way - which can cause delays. Spell out all the terms, the amount and how and when it all happens.
Terms for Termination
Tell the client how they can terminate your agreement, and state how you can terminate the agreement. If there is an end date to this contract, state that here too. If there is going to be a rate increase at any point (if it’s an endless contract), state it here as well. This way the client is aware of what will happen in the future, giving them the opportunity to leave the contract if they want to.
This is something that is good for both parties - you agree not to tell people you work for the client and the client agrees not to state what they pay you to people they recommend to work with you. Whatever you both want in this agreement to protect both parties in terms of non-disclosure goes here.
Ownership of the Deliverables
State in this section who owns the deliverables. Usually, you will put words to the effect that deliverables are owned by the client once payment has been processed. This will help prevent non-payment or claims of ownership of the work when payment has not yet been submitted. This is the best way to protect your hard work and their intellectual property.
It’s super important to include any legalities that are required by your state or country. It also is good for the service provider to include a line that states any court proceedings and all laws will be determined by your state, city, and county. That way if a problem happens you won’t have to travel to court.
Finally, always ensure that both of your names, business names, addresses, phone numbers, and emails and if applicable tax ID numbers such as your EIN (this is an employer ID number, although you do not need employees to have one). This is preferable to use than your social security number.