Tips for a Successful 2011!

Happy New Year! We hope your 2011 is off to a successful start. January is the perfect time to set goals for your business and get organized. Here are some tips on how to start the New Year on the right foot.

- Update payroll rates in Quickbooks. Last December, Obama declared a “payroll tax holiday” for 2011, meaning the employee’s portion of the Social Security tax will be reduced from 6.2% to 4.2%. The Social Security tax reduction replaced the Making Work Pay tax credit and if the reduction becomes permanent, employees will benefit much more than the tax credit. If you have not already, be sure to update this considerable reduction in Quickbooks. The Arizona Department of Economic Security is also issuing notices regarding your tax rate for 2011. Be sure to adjust the rate if there is a change from 2010.

- 1099 and W-2 Time! The deadline to mail W-2s and 1099s is January 31, 2011. Don’t wait until the last minute to file. Be sure to collect W-9s and issue Form 1099 to any individual, LLC, or partnership if you paid more than $600 in rent or services during 2010.Additionally, as a result of the 2010 Small Business Jobs Act, if you are receiving rental income from real property, you are required to file forms 1099 with the IRS and service providers to report payments of $600 or more during the year for rental property expenses, beginning January 1, 2011.

- Get organized! Getting organized seems to be everyone’s New Year’s resolution, but where do you even start? First of all, establish a filing system for your business whether it be electronic or paper filing. You should scan or file all your bank statements in one place so you can easily retrieve them. Another suggestion is to purchase Pendaflex binders sorted by each month. You should place all paid bills in one binder and all deposits in another binder so all expenses and income are stored in an organized fashion.

- Goals, Expectations, and Budget. Review your P&L from 2010 and use this as your measuring tool to create goals and expectations for your business. At the same time, examine your budget and look for new quotes from your vendors to stick with it.