Talking Tax to Milwaukee

Tax Prep vs. Tax Planning: Which One Is Your Accountant Actually Doing

Tue, 18 Nov 2025 20:11:32 GMT

Most business owners think their Accountant is “handling their taxes.” But here’s the truth; there’s a massive difference between tax preparation and tax planning , and most accountants only do one of them.

1. Tax Preparation: The History Report

Tax preparation is what happens after the year is over. Your CPA gathers your numbers, plugs them into software, and files your returns with the IRS. It’s about compliance by making sure everything is accurate and filed on time. It’s not about strategy; once December 31st has passed, there’s very little that can be done to lower your tax bill. Think of it as your financial “history report.” It’s a look back at what already happened.

2. Tax Planning: The Playbook

Tax planning is proactive. It’s about designing your financial life to pay less tax before the year ends. It focuses on strategy; entity structure, retirement contributions, income shifting, real estate strategies, depreciation planning, credits, and deductions that fit your situation. It’s done throughout the year , not just in March or April. It creates real savings , not just “clean paperwork.” Tax planning turns your CPA into a coach, someone who helps you make decisions today that reduce what you owe tomorrow.

3. The Key Question to Ask

If you only hear from your CPA at tax time, you’re getting tax prep. If you’re meeting throughout the year, reviewing financials, projecting income, and discussing ways to save, that’s tax planning. Ask your CPA: “What are we doing this year to reduce next year’s taxes?” If they don’t have an answer, it’s time to find someone who does.

4. Why It Matters

The difference can be tens of thousands of dollars. Tax prep is a cost. Tax planning is an investment, and it usually pays for itself many times over.

Short-Term vs. Long-Term Rentals: Tax Differences That Matter for Real Estate Investors

Tue, 28 Oct 2025 21:14:53 GMT

If you own rental property or are thinking about investing in real estate, one of the biggest decisions you’ll make is whether to operate a short-term rental (STR) like an Airbnb or VRBO, or a long-term rental (LTR) with traditional tenants.

While both can generate solid cash flow, the tax differences between short-term and long-term rentals can have a major impact on your bottom line, and the IRS treats them very differently.

1. Short-Term Rentals Are Often Treated Like a Business

If your average guest stay is seven days or less, the IRS generally doesn’t treat it as a “rental activity.” Instead, it’s often classified as an active trade or business, similar to running a small hospitality operation.

Tax implications of short-term rentals:

You may owe self-employment tax if you provide substantial guest services (like cleaning during the stay, meals, or concierge-type help).
You might qualify for the Qualified Business Income (QBI) deduction, which can allow up to 20% of your profit to be tax-free.
Bonus depreciation and Section 179 expensing may apply to furnishings, décor, and equipment.
Losses can be used to offset other active income (business or W-2).

In short, short-term rentals can open the door to more tax deductions, but they also come with more complexity and recordkeeping requirements.

2. Long-Term Rentals Are Usually Passive Income

For long-term rentals, where tenants sign leases for months or years, the IRS classifies the activity as passive income.

Tax implications of long-term rentals:

No self-employment tax applies to rental income.
You can claim depreciation deductions to offset income and reduce taxes.
You may still qualify for the QBI deduction if the rental activity rises to the level of a trade or business.

However, losses from long-term rentals are usually passive losses, which can only offset other passive income unless you qualify as a real estate professional.

3. Faster Write-Offs Through Cost Segregation

Both short-term and long-term rental owners can use cost segregation studies to accelerate depreciation. By identifying assets such as furniture, flooring, and appliances that can be depreciated over 5 or 7 years, investors can front-load deductions and reduce taxable income in the early years of ownership, a popular Airbnb tax strategy for maximizing cash flow.

4. Choosing the Right Rental Strategy for Tax Savings

Both short-term and long-term rentals offer powerful tax benefits but which is best depends on your goals:

Choose short-term rentals if you want flexibility, higher income potential, and more deduction opportunities.
Choose long-term rentals if you prefer stability, predictable cash flow, and less day-to-day involvement.

Before deciding, talk with a CPA who specializes in real estate taxation. The right setup can help you maximize deductions, reduce your tax liability, and avoid costly mistakes.

Short-term and long-term rentals both build wealth, but the tax rules are not one-size-fits-all. Understanding how the IRS classifies your rental activity is key to keeping more of what you earn. If you’re not sure which approach offers the best tax advantage, get professional advice before you buy or convert a property. A well-structured strategy could save you thousands each year.

Unlock the Strategic Path to Tax Savings: Download Your Free eBook Today

Wed, 08 Oct 2025 15:48:15 GMT

Are you confident you’re taking advantage of every opportunity to save on taxes?

Most people aren’t — and it’s not their fault. The tax system is complex, and without a clear plan, it’s easy to miss out on strategies that could make a meaningful difference.

That’s why we created The Strategic Path to Tax Savings , a free eBook that outlines a smarter approach to building long-term financial efficiency through intentional tax planning.

A Smarter Way to Think About Taxes

This isn’t about last-minute deductions or quick fixes. It’s about understanding how the right strategy can change the way you plan, earn, and grow.

Inside, you’ll learn how to start thinking proactively about your taxes — and why the most successful individuals and business owners view tax planning as a year-round opportunity, not a once-a-year event.

Take Control of Your Financial Future

If you’re ready to gain more clarity, confidence, and control over your financial path, this guide is the perfect place to start.

�� [Download The Strategic Path to Tax Savings eBook]

Start exploring what’s possible when you align your tax strategy with your bigger financial goals.

What the New Tax Bill Means for Real Estate Investors

Wed, 01 Oct 2025 17:07:19 GMT

The One Big Beautiful Bill Act has reshaped tax law in ways that directly affect real estate investors. While many changes apply broadly to business owners, real estate stands out as one of the biggest winners, with some important caveats.

Here’s what you need to know:

1. 100% Bonus Depreciation is Permanent

One of the most valuable tools for real estate investors has been bonus depreciation, allowing immediate write-offs of certain improvements and property components. The new bill makes 100% bonus depreciation permanent.

What this means:

Cost segregation studies remain a powerful way to accelerate deductions.
Investors purchasing or improving property over the next few years can still capture large up-front tax benefits.

2. 1031 Exchanges Fully Preserved

There was speculation that like-kind exchanges (1031s) might be curtailed or eliminated. The new law instead fully preserves 1031 exchanges for real estate.

What this means:

Investors can continue deferring capital gains taxes by rolling proceeds from one property into another.
Combined with extended bonus depreciation, this creates opportunities for “swap ‘til you drop” strategies, exchanging property while deducting improvements and eventually receiving a step-up in basis at death.

3. Opportunity Zone Changes

Opportunity Zones (OZs), designed to incentivize investment in designated low-income areas, saw important updates under the new law.

What changed:

The program sees a new 5 year rolling deferral period starting on January 1, 2027, giving investors more time to deploy capital and meet compliance deadlines with basis step ups.

What this means:

Investors sitting on capital gains still have a chance to defer and potentially reduce those taxes by investing in Qualified Opportunity Funds in 2027.
Longer timelines mean more flexibility in planning, but reporting compliance will become more important.

4. Energy-Efficient Provisions Narrowed

Under prior law, energy-related credits and deductions had expanded significantly. The new bill rolls some of these back, especially for residential projects, while still preserving limited opportunities for commercial property.

What changed:

Section 179D (commercial building energy-efficiency deduction) & 45L (new energy efficient home credit) is preserved, but only through June 30, 2026 for projects that begin construction before then. After that, it phases out.
Many residential energy credits (solar, HVAC, insulation) are being eliminated or sunset after 2025.
Commercial Battery Storage Credit is still available through 2032 and will start to phase out in 2033 and 2034.

What this means:

Commercial property owners considering efficiency upgrades should act soon there is a clear window of opportunity before these provisions disappear.
Residential investors should not rely on tax credits for green improvements going forward.

The One Big Beautiful Bill Act creates new opportunities but also deadlines for real estate investors. Extended bonus depreciation and preserved 1031 exchanges keep powerful tax strategies on the table. Opportunity Zones have been given new life, while energy-efficient incentives are on the clock.

The key takeaway: timing matters more than ever. Planning acquisitions, improvements, and sales with these changes in mind can mean the difference between maximizing tax savings or missing out.

If you’re a real estate investor and want to understand how these provisions apply to your portfolio, let’s connect to review your specific situation.

Navigating Business Taxation Under the One Big Beautiful Bill: What’s Changed and How to Plan

Tue, 23 Sep 2025 22:20:57 GMT

In July 2025, Congress passed and the President signed into law the One Big Beautiful Bill Act (OBBBA), bringing major changes to the U.S. tax code that significantly impact businesses, investors, pass-through entities, and estate planning. Many provisions build on the Tax Cuts and Jobs Act (TCJA). Some are permanent, others temporary, and all require careful planning to maximize opportunities and avoid pitfalls.

If you are a business owner, investor, or considering succession or estate planning, these changes could affect you directly.

Key Business & Investment Tax Changes

QBI Deduction Made Permanent

● 20% deduction for pass-through entity income (LLCs, S-corps, partnerships, sole proprietorships) is now permanent.

● Income thresholds for specified service trades or businesses (SSTBs) increased for 2025 ($394,600 for joint filers and $197,300 for other taxpayers).

● Starting in 2026, phase-in ranges expand: $150k for joint filers and $75k for others.

● Taxpayers with at least $1,000 in QBI may claim a minimum $400 QBI deduction.

100% Bonus Depreciation Permanently Extended

● Businesses can fully deduct qualifying property (equipment, vehicles, and certain buildings) placed in service after Jan 19, 2025.

● Manufacturing buildings qualify if placed in service before Jan 1, 2031.

Qualified Opportunity Zones (QOZs)

● Program is now permanent, with new 10-year designations beginning Jan 1, 2027.

Estate, Gift, and Succession Planning

● Lifetime estate and gift tax exemption increased to ~$15 million per person (indexed for inflation beginning in 2026).

● Adjustments to Qualified Small Business Stock (QSBS) for shares issued after July 4, 2025.

Tip Credit Expansion

● FICA tip credit extended to beauty service businesses.

Other Key Provisions

● Restored Research and Development expensing (Section 174).

● Interest deduction changes (ATI excludes depreciation, amortization, or depletion).

● Higher Section 179 deduction and phase-out thresholds.

● Expanded Low Income Housing Tax Credit allocations.

● Clean Energy Tax Credit changes: Section 45L and 179D repealed after June 30, 2026.

Considerations & Challenges

● Some provisions are temporary (e.g., certain deductions and caps), so timing is critical.

● Income phaseouts may limit benefits for high-income pass-through owners.

● Increased compliance complexity (e.g., amended returns, documentation) will be important.

● Real estate ownership structures and financing choices may need reevaluation in light of new depreciation and interest rules.

Planning Opportunities for Businesses & Investors

Accelerate Capital Expenditures

Investing in equipment, vehicles, or eligible buildings now can provide immediate tax benefits through 100% bonus depreciation.

Optimize Business Structure for QBI

Assess ownership, entity type, and income levels to maximize the 20% deduction. Service businesses might gain advantages by restructuring to distinguish between qualifying and non-qualifying activities.

Estate & Succession Planning

Take advantage of the higher exemption to transfer assets via gifts or trusts while the thresholds are still beneficial. Consider Qualified Small Business Stock (QSBS) opportunities if you are investing in or selling small business shares.

Leverage Tax Credits & Incentives

Investigate possibilities in affordable housing and Qualified Opportunity Zones, but ensure compliance with updated documentation requirements.

Cost Segregation for Real Estate

Think about conducting cost segregation studies to enhance depreciation benefits on properties.

Model Income Scenarios

Create multi-year projections to optimize the timing of income, deductions, and asset acquisitions to avoid crossing phaseout thresholds.

What’s Next?

The One Big Beautiful Bill Act transforms the tax environment for businesses and investors alike. Featuring permanent QBI deductions, reinstated R&D expensing, and bonus depreciation, it unlocks extraordinary chances to minimize taxable income. Additionally, enhanced estate and gift exemptions offer robust strategies for effective succession planning.

However, these advantages won’t maximize themselves. Considerations such as timing, entity structure, and integrated planning are crucial — as every choice can significantly alter your tax responsibilities.

To understand how these developments affect your unique circumstances, reach out to us at Hammernik & Associates. Together, let’s devise a strategy that strategically positions your business for success in 2025 and beyond.

When and How to Plan for Selling Your Business: Key Considerations for a Successful Exit

Wed, 17 Sep 2025 21:03:38 GMT

Selling a business is one of the biggest financial and personal decisions an owner will ever make. Whether your business has been your life’s work or a venture you’ve grown to a certain stage, the sale can be both exciting and overwhelming. The key to maximizing value and ensuring a smooth transition lies in planning early and strategically .

When Should You Start Planning to Sell?

Many business owners wait until they’re “ready” to sell before thinking about an exit strategy. The truth is, the best time to start planning is 3–5 years before you intend to sell . Why? Because preparing in advance allows you to:

Maximize Value : Address inefficiencies, clean up financials, and strengthen operations.
Increase Buyer Appeal : Buyers want businesses that are easy to transition and not overly dependent on the owner.
Reduce Surprises : Advanced planning helps you anticipate and resolve issues before they arise during due diligence.
Tax Optimization : Structuring the business and personal finances in advance can save you significant taxes on the sale.

How to Prepare for Selling a Business

Get a Professional Valuation
Understanding what your business is worth now—and what drives that value—helps you set realistic expectations and uncover areas to improve.
Strengthen Financial Records
Clean, accurate, and detailed financial statements are essential. Buyers want transparency, and sloppy books can reduce value or kill a deal.
Reduce Owner Dependence
If the business relies heavily on you, buyers may see higher risk. Build systems, delegate responsibilities, and strengthen your management team.
Diversify Revenue Streams
Businesses with one major client or product line are riskier. Work on spreading out your income sources to make the business more resilient.
Review Legal and Compliance Matters
Ensure contracts, licenses, intellectual property, and employment agreements are in order. Buyers don’t want hidden liabilities.
Tax and Exit Planning
Work with an accountant and advisors to structure the sale in a way that minimizes taxes and aligns with your long-term wealth goals. For example, you may consider stock vs. asset sales, installment sales, or estate planning strategies.
Identify Potential Buyers
Depending on your goals, your ideal buyer might be a competitor, private equity group, employee, or family member. Each has unique considerations for structure and transition.
Plan Your Role After the Sale
Some buyers will want you to stay on for a transition period. Decide in advance how long you’re willing to remain involved and in what capacity.

Things to Consider Before Selling

Timing : The economy, interest rates, and industry trends can impact the value of your business.
Emotional Readiness : Many owners underestimate how attached they are to their businesses. Be prepared for the personal side of letting go.
Post-Sale Life : What will you do after the sale—retire, start another business, or shift to advisory work? Knowing your “what’s next” is critical.
Team & Legacy : If your employees, clients, or community impact matter to you, consider how the sale will affect them and choose a buyer accordingly.

Final Thoughts

Selling your business isn’t just a financial transaction—it’s the culmination of years of work and the start of a new chapter. By starting early, getting the right advisors, and carefully preparing your business, you’ll not only maximize the financial return but also create peace of mind knowing your legacy is in good hands. The Hammernik & Associates Virtual Family Office experience allows for proactive planning, which includes business development and planning for a potential business exit. This is one of the many great features that our Virtual Family Office client are able to take advantage of through our services.

The Myths About S Corporations—and Why They’re Commonly Misused

Thu, 04 Sep 2025 16:44:21 GMT

For many business owners, choosing the right entity type is one of the most important financial decisions they’ll ever make. Among the most

popular choices is the S Corporation (S Corp) . While this structure can offer significant tax advantages in the right circumstances, it’s also one of the most misunderstood and misused business entities.

Below, we’ll break down the most common myths about S Corporations—and explain why so many owners run into trouble when they don’t fully understand how the rules really work.

Myth #1: An S Corporation Is a Type of Business Entity

The Truth: An S Corporation isn’t actually a type of business entity—it’s a tax election .

You don’t “form” an S Corporation; you first create a corporation or limited liability company (LLC) and then elect S Corporation tax treatment with the IRS. Many owners assume the S Corp is a completely separate structure, but it’s simply a way of telling the IRS how you want your profits, losses, and distributions to be taxed.

Myth #2: S Corporations Eliminate Self-Employment Taxes

The Truth: S Corps can reduce self-employment taxes, but they don’t make them disappear.

One of the biggest selling points people hear is that S Corps “save you thousands in taxes” because you avoid self-employment tax. But here’s the catch: the IRS requires that S Corporation owners pay themselves a reasonable salary . That salary is subject to payroll taxes (Social Security and Medicare), just like any other employee. Only the profit distributions above that salary are exempt from self-employment tax.

If you pay yourself too little, the IRS can reclassify your distributions as wages and hit you with penalties.

Myth #3: Everyone Should Be an S Corporation

The Truth: S Corps are not always the best fit.

For small businesses just starting out or those with modest profits, the additional payroll filings, state requirements, and accounting complexities may outweigh the tax benefits. In some cases, an LLC taxed as a sole proprietorship—or even a C Corporation—may be the better option depending on your long-term goals, reinvestment strategy, or desire for outside investors.

Myth #4: S Corporations Save You Money Automatically

The Truth: S Corps only save money if they’re structured and maintained correctly .

Yes, you can save on self-employment taxes by splitting income between salary and distributions. But if your books aren’t clean, payroll isn’t processed properly, or distributions are handled incorrectly, those “savings” can evaporate into penalties, audits, and unnecessary stress.

Myth #5: You Don’t Need Help Managing an S Corporation

The Truth: S Corps require ongoing compliance and proactive tax planning.

An S Corp isn’t a “set it and forget it” election. Owners must manage reasonable compensation, payroll tax filings, shareholder basis tracking, state-level requirements, and annual elections. Without guidance from a knowledgeable accountant and tax planner, many owners misuse the structure— leaving money on the table or creating IRS red flags.

Why S Corporations Are Commonly Misused

Misinformation from peers or online sources – Many owners hear about S Corps from friends, family, or internet forums without understanding the full picture. "S Corporation" has become an internet buzz word that influences many business owners to assume they should be structured as one, without analyzing their personal situation.
DIY entity setup – Filing the election without professional guidance often leads to mistakes in payroll, distributions, and recordkeeping.
Lack of proactive planning – Owners make the election but never revisit whether it’s still the right choice as the business grows.
Focus on short-term tax savings – Without considering long-term goals like retirement planning, exit strategy, or bringing on partners, the S Corp can create limitations.

How Hammernik & Associates Helps

At Hammernik & Associates, we know entity choice is not a “one-time decision.” Business goals, income levels, and tax laws change over time—which is why we analyze entity optimization for our clients on an annual basis .

Our team reviews whether your current structure—S Corporation or otherwise—is still the best fit to minimize taxes, reduce risk, and support your long-term strategy. Sometimes, that means staying the course. Other times, it means adjusting salary levels, refining payroll, or even considering a different entity election.

This proactive review helps our clients avoid the common pitfalls of S Corps while ensuring they’re always taking advantage of the best structure for their situation.

The Bottom Line

S Corporations can be a powerful tax-saving tool —but only when used in the right situation and managed correctly. Too often, business owners are sold on the myth of “automatic tax savings” without being told about the responsibilities and pitfalls.

If you’re considering an S Corporation election—or if you already have one and aren’t sure if you’re using it correctly—it’s wise to sit down with a tax advisor who can help you evaluate whether this structure truly fits your business goals.

Forward-Looking vs. Backward-Looking Accounting: Why Both Matter for Business Owners

Thu, 28 Aug 2025 15:06:56 GMT

“Don’t just track the past—plan the future.”

When most people think of accounting, they picture tax returns, financial statements, or profit-and-loss reports. These are essential—but they’re all backward-looking .

They tell the story of what already happened in your business.

But as a business owner, investor, or high-income earner, your real competitive advantage comes when you combine that historical view with forward-looking accounting —the strategies and insights that help shape the future of your finances.

This allows you to write the story you want to tell.

What is Backward-Looking Accounting?

Backward-looking accounting focuses on the past. It measures and reports on what already occurred, usually for compliance or record-keeping purposes.

Examples include:

Bookkeeping entries that record last month’s transactions
Year-end tax returns
Financial statements prepared for banks or investors
Historical profit and loss reporting

This type of accounting is crucial for accuracy, compliance, and transparency. It’s like looking in the rearview mirror: it shows where you’ve been, but it won’t necessarily help you steer where you’re going.

The biggest value an accountant can provide in backward-looking accounting is to provide you peace of mind that everything is being done accurately and on time to keep you compliant.

What is Forward-Looking Accounting?

Forward-looking accounting shifts the focus from the past to the future. Instead of just reporting what happened, it projects what could happen and builds strategies to improve outcomes.

Examples include:

Cash flow forecasting
Budgeting and financial modeling
Tax planning before year-end
Growth scenario analysis (e.g., “What happens if we hire 3 new employees?”)
Retirement and succession planning

This is where you gain clarity, control, and proactive decision-making power. It’s like looking through the windshield while driving—you can anticipate turns, avoid roadblocks, and accelerate toward your goals.

The biggest value an accountant can provide in forward-looking accounting is building wealth.

Why Both Are Necessary

Relying only on backward-looking accounting can leave you constantly reacting instead of planning. On the other hand, focusing solely on projections without accurate historical data can lead to unrealistic assumptions.

The best financial strategies blend both:

Use backward-looking accounting to ground your numbers in reality.
Use forward-looking accounting to create strategies that optimize cash flow, reduce taxes, and build long-term wealth.

The Bottom Line

Backward-looking accounting keeps you compliant. Forward-looking accounting helps you thrive and strategize towards your goals.

Business owners who embrace both aren’t just documenting their financial history—they’re actively shaping their financial future.

If you want more than just after-the-fact reporting, consider working with an accountant or virtual family office that brings both perspectives together. The past can inform you, but the future is where real wealth is built.

What is a Family Office? How a Virtual Family Office Helps Business Owners and High-Income Earners

Wed, 20 Aug 2025 18:08:00 GMT

What is a Family Office? And How a Virtual Family Office Can Benefit Business Owners and High-Income Earners

Learn what a Virtual Family Office is and how it provides tax, wealth, and business planning strategies once reserved for the ultra-wealthy.

As your wealth grows, so does the complexity of managing it. Business owners and high W-2 income earners often juggle accountants, financial advisors, attorneys, bankers, and insurance professionals—each offering advice, but rarely coordinating with one another.

This lack of alignment can lead to missed opportunities, unnecessary taxes, and added financial stress. That’s where the family office model comes in.

What is a Family Office?

A traditional family office is a private wealth management firm designed to serve ultra-high-net-worth families. It brings all areas of financial life under one roof, coordinating:

Tax planning and preparation
Investment management
Estate planning and trusts
Insurance and risk protection
Philanthropy and charitable planning
Business succession and exit strategies

Think of it as your personal Chief Financial Officer (CFO) —a single point of coordination ensuring your money is working efficiently in every area.

Historically, family offices were reserved for families with $100 million or more. Oprah Winfrey pays $10M-$20M per year to her familty office, Bill Gates pays $200M-$250M per year to his family office.

But with today’s technology and collaboration models, that level of service is now available to anyone through a Virtual Family Office (VFO) .

What is a Virtual Family Office?

At Hammernik & Associates, we’ve modernized the family office model by offering a Virtual Family Office to successful business owners and high-income earners.

For years, our clients have come to us asking questions about legal situations, wealth management situations, and insurance situations. We now have built a team of experts in those areas to deliver answers to those questions and provide valuable solutions.

A VFO delivers the same coordinated approach as a traditional family office but at a fraction of the cost. Instead of hiring a full in-house team, we act as the quarterback of your financial life , connecting and managing a team of professionals—including accountants, attorneys, wealth managers, insurance experts, and business advisors.

The benefit? You get big-picture financial strategies, without gaps or duplication, all aligned with your personal and business goals.

Benefits of a Virtual Family Office

1. Pay Less in Taxes

Most people overpay in taxes because their advisors aren’t talking to each other. A VFO ensures your tax strategy, investment strategy, and business structure all work together. We focus on proactive planning, not just year-end filing.

2. One Team, Aligned With Your Goals

No more piecemeal advice. Your accountant, attorney, advisor, and insurance professional are brought together to collaborate, so you get a unified financial plan instead of conflicting recommendations.

3. Protect Your Wealth

Higher income comes with higher risk. We help protect what you’ve built through asset protection strategies, proper entity structuring, estate planning, and insurance coordination.

4. Plan for Business Succession or Exit

For many business owners, the company is their largest asset. A VFO helps design strategies for succession, sale, or exit to ensure maximum value and smooth transition.

5. Gain Clarity and Confidence

Perhaps the greatest value is peace of mind. With a VFO, you gain a clear financial roadmap and confidence knowing every aspect of your wealth is being optimized and monitored.

Who Should Consider a Virtual Family Office?

Our services are best suited for:

Business owners generating six or seven figures who want to increase cash flow, minimize taxes, and protect their wealth.
Real Estate investors looking to create passive income, add to their asset profile, or reduce the tax burden on the sale of a property.
High W-2 income earners a household income of $200,000 or more.
Families focused on legacy planning who want to create multi-generational wealth and protection.

Why Choose Hammernik & Associates?

At Hammernik & Associates, we go beyond tax preparation. We help you:

Save significantly on taxes with proactive planning
Build wealth through coordinated financial strategies
Protect your assets and reduce risk
Gain true financial clarity and control

Our Virtual Family Office services give you access to the same level of strategy and coordination once reserved for the ultra-wealthy—right here, right now.

Take Control of Your Financial Future

If you’re a business owner or high-income professional, don’t settle for disconnected advice. With Hammernik & Associates’ Virtual Family Office, you’ll have one trusted team guiding every aspect of your financial life.

�� Ready to see how a Virtual Family Office can benefit you? Contact Hammernik & Associates today to schedule your consultation.

The COVID Relief Bill Summarized

Thu, 24 Dec 2020 22:29:00 GMT

The “rescue package” has arrived. The COVID Relief bill is a whopping 5,593 pages long. I know you don’t want to sit and read through that novel, so I am here to summarize, in plain English, how this bill is going to effect your taxes.

Have you ever been on a roller coaster before? A lot of twist and turns, up and down, scary for some, exhilarating for others.

I fondly remember going to Six Flags Great America every summer with my family. The roller coaster named, American Eagle, was always the scariest roller coaster for me. Why? The roller coaster is made up of wood and has been there for decades. Who’s to say that the wood doesn’t begin to rot, or is attacked by termites…a lot for a young kid to worry about.

The COVID tax bills have been more stressful than any roller coaster ride of my life. The tax community has been left off on an island in regards to how we are supposed to approach the ramifications of COVID related tax bills. In particular, the Paycheck Protection Program taxability. As a small business consultant, I have felt very vulnerable at times when trying to advise our small business clients. The rules of the PPP have changed monthly, weekly…daily! The original intent of the PPP loan was to provide business owners monies to keep employees on payroll and pay their rents. The intent was for their not to be any tax ramifications involved. However, the IRS interpreted the loan differently. The IRS was prepared to not allow any expenses to be deducted by a business if those expenses were forgiven by the PPP loan. This essentially means that the business would have to report profits equivalent to the amount of their PPP loan that was forgiven. To put it simply, the PPP loan would become taxable. The roller coaster ride is now over. In the bill, we finally get the ruling that expenses forgiven WILL STILL BE TAX DEDUCTIBLE!!!! YAY!

This is great news for small business owners as it will relieve them of potentially large tax burdens when filing their tax return.

Let’s take a look at how some items in the bill may effect small business owners and individual taxpayers.

Individuals

Additional 2020 Recovery Rebates (Stimulus Check)
• $600 per eligible family member – Non-taxable. **This could be $2,000 if they choose to amend this portion of the bill based on the President’s recommendation.

PPP Loan Updates

PPP 2nd Draw

To qualify, a business must have:

How much of a loan will you get if you qualify?

What if I missed the boat on Round 1 of the PPP Loan?

They will be opening up applications for the original PPP Loan!

None of this is final law yet. We are currently in the veto process in which Congress will need to decide if they want to amend the bill or override the veto. Regardless, I am confident the items discussed in this article will stick. When you will receive your stimulus checks and how much will they be, who knows?…but they’re coming! Small business owners, the PPP loan will not effect your taxes…it’s a Christmas miracle.

We will provide updates as they come along. Stay tuned for all your small business accounting needs.

Happy Holidays!

Nick Hammernik

The post The COVID Relief Bill Summarized appeared first on Talking Tax to Milwaukee .

The Tax Slang Movement

Fri, 04 Dec 2020 18:53:00 GMT

This past week, I finally dove into a project that I has been brewing in my mind for a few years. I published my first podcast episode today. Is it any good? I’m not quite sure. To be honest, I’m not too happy with how it turned out. However, I accomplished part of my goal. I think I will get the hang of it and produce better content the more I do it. The podcast is just part of the overall vision. The vision is to educate the public on tax, financial, and general money education in plain English. I have always put an emphasis on being able to explain tax issues to my clients in a straightforward language. Remove all of the technical tax jargon, and give it to them straight. Unfiltered, easy to understand, money education….Tax Slang.

I’ve realized there is a major disconnect between some of the skills that are taught to us in school and the skills that we actually utilize in the real world. More specifically, a lot of the financial responsibilities that we encounter once we become “adults”. How do I fill out a W-4 to give to my employer? How do I file my tax return….more importantly, why am I even being forced to pay taxes? Why is it important to invest? What’s a loan, a mortgage? How does credit card interest work?

I have heard this phrase soooo many times, ” Why didn’t I learn that in school?”; or, ” I wish I would have known this earlier”.

Instead, in school, we are forced to take curriculum that has no use to us later in life. My initial goal is to educate everyone on financial strategies through entertaining, straight to the point podcasts. I will also be providing video and blog content to try and educate across all platforms.

My ultimate goal is to create online financial educational courses. I want to teach the stuff that should be taught in school. Whether a teenager wants to improve their financial knowledge for the first job, a college graduate wants to prepare to open their first retirement account, or if an adult wants become more informed about their current financial situation.

In general, people don’t like to talk about finances. It’s boring, confusing, or they are scared that they don’t know how to approach the situation.

Tax Slang is going to be your resource to learn valuable financial life skills and business accounting basics without the confusion.

Please check out the first episode and follow along each week as I hope to continuously improve as a podcaster.

https://www.buzzsprout.com/1512604/6675680-hogwarts-what-a-pathetic-excuse-for-a-school.mp3?blob_id=28034420&download=true

If there are any topics you want me to discuss, email taxslang@gmail.com

Cheers,

Nick

The post The Tax Slang Movement appeared first on Talking Tax to Milwaukee .

2020 Year-End Tax Savings Tips

Fri, 13 Nov 2020 16:55:00 GMT

Your goal should be to get the IRS to owe you money. Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.

Here are seven powerful business tax-deduction strategies that you can easily understand and implement before the end of 2020.

You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS.

Under this safe harbor, your 2020 prepayments cannot go into 2022. This makes sense, because you can prepay only 12 months of qualifying expenses under the safe-harbor rule.

For a cash-basis taxpayer, qualifying expenses include lease payments on business vehicles, rent payments on offices and machinery, and business and malpractice insurance premiums.

Example. You pay $3,000 a month in rent and would like a $36,000 deduction this year. So on Thursday, December 31, 2020, you mail a rent check for $36,000 to cover all of your 2021 rent. Your landlord does not receive the payment in the mail until Tuesday, January 5, 2021. Here are the results:

You get what you want—the deduction this year. The landlord gets what he wants—next year’s entire rent in advance, eliminating any collection problems while keeping the rent taxable in the year he expects it to be taxable.

Don’t surprise your landlord: if he had received the $36,000 of rent paid in advance in 2020, he would have had to pay taxes on the rent money in tax year 2020.

Here is one rock-solid, time-tested, easy strategy to reduce your taxable income for this year: stop billing your customers, clients, and patients until after December 31, 2020. (We assume here that you or your corporation is on a cash basis and operates on the calendar year.)

Customers, clients, patients, and insurance companies generally don’t pay until billed. Not billing customers and patients is a time-tested tax-planning strategy that business owners have used successfully for years.

Example. Jim, a dentist, usually bills his patients and the insurance companies at the end of each week; however, in December, he sends no bills. Instead, he gathers up those bills and mails them the first week of January. Presto! He just postponed paying taxes on his December 2020 income by moving that income to 2021.

With bonus depreciation now at 100 percent along with increased limits for Section 179 expensing, buy your equipment or machinery and place it in service before December 31, and get a deduction for 100 percent of the cost in 2020.

Qualifying bonus depreciation and Section 179 purchases include new and used personal property such as machinery, equipment, computers, desks, chairs, and other furniture (and certain qualifying vehicles).

If you are a single-member LLC or sole proprietor filing Schedule C for your business, the day you charge a purchase to your business or personal credit card is the day you deduct the expense. Therefore, as a Schedule C taxpayer, you should consider using your credit card for last-minute purchases of office supplies and other business necessities.

If you operate your business as a corporation, and if the corporation has a credit card in the corporate name, the same rule applies: the date of charge is the date of deduction for the corporation.

But if you operate your business as a corporation and you are the personal owner of the credit card, the corporation must reimburse you if you want the corporation to realize the tax deduction, and that happens on the date of reimbursement. Thus, submit your expense report and have your corporation make its reimbursements to you before midnight on December 31.

If your business deductions exceed your business income, you have a tax loss for the year. With a few modifications to the loss, tax law calls this a “net operating loss,” or NOL.

If you are just starting your business, you could very possibly have an NOL. You could have a loss year even with an ongoing, successful business.

You used to be able to carry back your NOL two years and get immediate tax refunds from prior years; however, the Tax Cuts and Jobs Act (TCJA) eliminated this provision. Now, you can only carry your NOL forward, and it can only offset up to 80 percent of your taxable income in any one future year.

What does all this mean? You should never stop documenting your deductions, and you should always claim all your rightful deductions. We have spoken with far too many business owners, especially new owners, who don’t claim all their deductions when those deductions would produce a tax loss.

Let’s be real: there’s little to be grateful for with COVID-19, but one of the several exceptions is the potential opportunity to turn NOLs into cash for your business.

Two NOL opportunities come from the Coronavirus Aid, Relief, and Economic Security (CARES) Act:

Before the CARES Act, you could not carry back your 2018, 2019, or 2020 losses, and your NOL could offset only up to 80 percent of taxable income before your Section 199A deduction.

In the CARES Act, Congress finally fixed the qualified improvement property (QIP) error that it made in the TCJA.

QIP is any improvement made by the taxpayer to the interior portion of a building that is non-residential real property (think office buildings, retail stores, and shopping centers) if you place the improvement in service after the date you place the building in service.

If you have such property on an already filed 2018 or 2019 return, it’s on that return as 39-year property. You now have to change it to 15-year property, eligible for both bonus depreciation and Section 179 expensing.

2020 Last-Minute Section 199A Tax Reduction Strategies

Remember to consider your Section 199A deduction in your year-end tax planning.

If you don’t, you could end up with a big fat $0 for your deduction amount. We’ll review three year-end moves that (a) reduce your income taxes and (b) boost your Section 199A deduction at the same time.

First Things First

If your taxable income is above $163,300 (or $326,600 on a joint return), then your type of business, wages paid, and property can reduce and/or eliminate your Section 199A tax deduction.

If your deduction amount is less than 20 percent of your qualified business income (QBI), then consider using one or more of the strategies described below to increase your Section 199A deduction.

Strategy 1: Harvest Capital Losses

Capital gains add to your taxable income, which is the income that

If the capital gains are hurting your Section 199A deduction, you have time before the end of the year to harvest capital losses to offset those harmful gains.

Strategy 2: Make Charitable Contributions

Since the Section 199A deduction uses taxable income for its thresholds, you can use itemized deductions to reduce and/or eliminate threshold problems and increase your Section 199A deduction.

Charitable contribution deductions are the easiest way to increase your itemized deductions before the end of the year (assuming you already itemize).

Strategy 3: Buy Business Assets

Thanks to 100 percent bonus depreciation and Section 179 expensing, you can write off the entire cost of most assets you buy and place in service before December 31, 2020.

This can help your Section 199A deduction in two ways:

2020 Last-Minute Year-End Tax Strategies for Your Stock Portfolio

When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2020 income taxes.

The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies.

Here’s the basic strategy:

Think of this: you are paying taxes at a 71.4 percent higher rate when you pay at 40.8 percent rather than the tax-favored 23.8 percent.

To avoid the higher rates, here are seven possible tax-planning strategies.

Strategy 1

Examine your portfolio for stocks that you want to unload, and make sales where you offset short-term gains subject to a high tax rate such as 40.8 percent with long-term losses (up to 23.8 percent).

In other words, make the high taxes disappear by offsetting them with low-taxed losses, and pocket the difference.

Strategy 2

Use long-term losses to create the $3,000 deduction allowed against ordinary income.

Again, you are trying to use the 23.8 percent loss to kill a 40.8 percent rate of tax (or a 0 percent loss to kill a 12 percent tax, if you are in the 12 percent or lower tax bracket).

Strategy 3

As an individual investor, avoid the wash-sale loss rule.

Under the wash-sale loss rule, if you sell a stock or other security and purchase substantially identical stock or securities within 30 days before or after the date of sale, you don’t recognize your loss on that sale. Instead, the code makes you add the loss amount to the basis of your new stock.

If you want to use the loss in 2020, then you’ll have to sell the stock and sit on your hands for more than 30 days before repurchasing that stock.

Strategy 4

If you have lots of capital losses or capital loss carryovers and the $3,000 allowance is looking extra tiny, sell additional stocks, rental properties, and other assets to create offsetting capital gains.

If you sell stocks to purge the capital losses, you can immediately repurchase the stock after you sell it—there’s no wash-sale “gain” rule.

Strategy 5

Do you give money to your parents to assist them with their retirement or living expenses? How about children (specifically, children not subject to the kiddie tax)?

If so, consider giving appreciated stock to your parents and your non-kiddie-tax children. Why? If the parents or children are in lower tax brackets than you are, you get a bigger bang for your buck by

Strategy 6

If you are going to make a donation to a charity, consider appreciated stock rather than cash, because a donation of appreciated stock gives you more tax benefit.

It works like this:

Example. You bought a publicly traded stock for $1,000, and it’s now worth $11,000. You give it to a 501(c)(3) charity, and the following happens:

Two rules to know:

Strategy 7

If you could sell a publicly traded stock at a loss, do not give that loss-deduction stock to a 501(c)(3) charity. Why? If you sell the stock, you have a tax loss that you can deduct. If you give the stock to a charity, you get no deduction for the loss—in other words, you miss out on that tax-reducing loss.

2020 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family

If you are thinking of getting married or divorced, you need to consider December 31, 2020, in your tax planning.

Here’s another planning question: Do you give money to family or friends (other than your children, who are subject to the kiddie tax)? If so, you need to consider the zero-taxes planning strategy.

And now, consider your children who are under age 18. Have you paid them for work they’ve done for your business? Have you paid them the right way?

Here are five strategies to consider as we come to the end of 2020.

If you have a child under the age of 18 and you operate your business as a Schedule C sole proprietor or as a spousal partnership, you absolutely need to consider having that child on your payroll. Why?

First, neither you nor your child would pay payroll taxes on the child’s income.

Second, with a traditional IRA, the child can avoid all federal income taxes on up to $18,400 in income.

If you operate your business as a corporation, you can still benefit by employing the child even though both your corporation and your child suffer payroll taxes.

The marriage rule works like this: you are considered married for the entire year if you are married on December 31.

Although lawmakers have made many changes to eliminate the differences between married and single taxpayers, in most cases the joint return will work to your advantage.

Warning on alimony! The TCJA changed the tax treatment of alimony payments under divorce and separate maintenance agreements executed after December 31, 2018:

Two single people can deduct more mortgage interest than a married couple.

If you own a home with someone other than a spouse, and you bought it on or before December 15, 2017, you individually can deduct mortgage interest on up to $1 million of a qualifying mortgage.

For example, if you and your unmarried partner live together and own the home together, the mortgage ceiling on deductions for the two of you is $2 million. If you get married, the ceiling drops to $1 million.

If you bought your house after December 15, 2017, then the reduced $750,000 mortgage limit from the TCJA applies. In that case, for two single people, the maximum deduction for mortgage interest is based on a ceiling of $1.5 million.

Remember, if you are married on December 31, you are married for the entire year.

If you are thinking of getting married in 2021, you might want to rethink that plan for the same reasons that apply in a divorce (as described above). The IRS could make big savings available to you if you get married on or before December 31, 2020.

You have to run the numbers in your tax return both ways to know the tax benefits and detriments for your particular case. But a quick trip to the courthouse may save you thousands.

In the old days, you used this strategy with your college student. Today, this strategy does not work with the college student, because the kiddie tax now applies to students up to age 24.

But this strategy is a good one, so ask yourself this question: Do I give money to my parents or other loved ones to make their lives more comfortable?

If the answer is yes, is your loved one in the 0 percent capital gains tax bracket? The 0 percent capital gains tax bracket applies to a single person with less than $40,000 in taxable income and to a married couple with less than $80,000 in taxable income.

If the parent or other loved one is in the 0 percent capital gains tax bracket, you can get extra bang for your buck by giving this person appreciated stock rather than cash.

Example. You give your aunt shares of stock with a fair market value of $20,000, for which you paid $2,000. Your aunt sells the stock and pays zero capital gains taxes. She now has $20,000 in after-tax cash to spend, which should take care of things for a while.

Had you sold the stock, you would have paid taxes of $4,284 in your tax bracket (23.8 percent times the $18,000 gain).

Of course, $5,000 of the $20,000 you gifted goes against your $11.4 million estate tax exemption if you are single. But if you’re married and you made the gift together, you each have a $15,000 gift-tax exclusion, for a total of $30,000, and you have no gift-tax concerns other than the requirement to file a gift-tax return that shows you split the gift.

2020 Last-Minute Year-End Medical Plan Strategies

All small-business owners with one to 49 employees should have a medical plan in their business. Sure, the tax law does not require you to have a plan, but you should.

Most of the tax rules that apply to medical plans are straightforward when you have fewer than 50 employees.

Here are the six opportunities for you to consider:

Hammernik & Associates is offering a complimentary Tax Savings Discovery for any business owner that is profiting at least $75,000 for this year, or is expecting to meet that mark in 2021. If you would like to take advantage of this offer, please contact one of our team members.

The post 2020 Year-End Tax Savings Tips appeared first on Talking Tax to Milwaukee .

COVID-19 Tax Updates

Fri, 31 Jul 2020 19:08:00 GMT

With the 2019 Tax Filing Season just behind us, it is difficult to think of the next filing season, however, there are many issues that need to be addressed now, rather than wait.

At this most difficult time for our taxpayers, we want to assure you that our firm is here to assist you with your questions and concerns about small business accounting and finances.

Economic Impact Payment – Stimulus

Many of you received an Economic Impact Payment, known as the Stimulus. Whether you received a direct deposit, a check or a debit card, you also received a letter from the Internal Revenue Service. If you received this letter, Notice 1444 in the mail we will need it to prepare your 2020 U. S. Federal Income Tax Return to determine if you qualify for additional payment.

If you did not get your payment, you can check the Get My Payment tool on the IRS website to double-check that it has been issued.

You can initiate a trace on your payment by calling the IRS at 800-919-9835,expect long wait times, or submitting Form 3911. The United States Department of Treasury has requested for any deceased taxpayer who received a stimulus, their estate should return the payment to the Internal Revenue Service.

Unemployment Compensation

According to the IRS , unemployment benefits are taxable income . This means that any unemployment compensation that you receive from a state or the federal government must be included in your income and will be taxed at your ordinary income tax rate

To access 1099-G tax statements, claimants can go to https://dwd.wisconsin.gov/uiben/1099.htm and then follow a few easy steps to obtain an electronic copy of their 2020 benefit payment records.

In response to customer service trends toward the convenience of online self-service, claimants who have logged onto UI’s online benefits services system are being notified their 1099-G statements for 2020 will be accessible online and that they should not expect to be mailed paper copies . DWD securely stores 1099-G forms online for all claimants to access and print for their records. Claimants’ statements are available online for the past six years, which is helpful if claimants have to file amended tax returns. The UI Division is required to send 1099-G information to the Internal Revenue Service and the Wisconsin Department of Revenue

This tax form shows the amount of unemployment benefits you received and the amount of taxes withheld. Unemployment benefits will also be taxable to your state if you live in a state with state income tax. We will need the Form 1099-G to prepare your 2020 tax return.

You may wish to have withholding taken from your payment or may make Estimated Tax Payments to the IRS and the State. If you received Unemployment benefits, you may want to plan ahead for the potential tax impact so that there are not any surprises when you file your 2020 tax return.

Payroll Protection Plan Loans

Payroll Protection Plan (PPP) loans obtained to assist you keep your business open and your staff employed will undoubtedly have some impact on your 2020 tax filing. The United States Congress is considering additional legislation to determine if debt forgiveness will not allow deductions used to eliminate the debt to be deductible or if there will be a blanket allowance of up to $150,000 of the PPP to be considered a grant and non-taxable. Currently, the part of the loan that is forgiven will not be allowed as deductible expenses, i.e. payroll, rent, utilities. This may increase your profits subject to tax. Tax Planning will be very important if this legislation does not change.

RMDs – Required Minimum Distributions

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.

In addition to the rollover opportunity, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020. The notice provides that this repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.

These issues and many others have impacted our clients so far this year including changes in the tax code that may require amendment of prior tax returns.

Additionally the Supreme Court is scheduled to hear oral arguments concerning the constitutionality of the Patient Protection and Affordable Care Act, ACA, case California vs. Texas . Should the Supreme Court over-turn the ACA it will overturn such tax issues as the Additional Medicare Tax and the Net Investment Income Tax. It remains to be seen the full tax scope of such a decision.

Again, we understand the need to stay safe and well, it is our priority for our firm as well.

We are taking the precautions to keep you, our staff and us safe during these times.

We are ready to serve you. Please call our office for an appointment, either face-to-face or by telephone.

Our best of wishes for your health and well-being.

Team Hammernik - Your Business Accounting Partner

The post COVID-19 Tax Updates appeared first on Talking Tax to Milwaukee .

Milwaukee Restart Grant Program

Fri, 05 Jun 2020 16:41:00 GMT

The goal of the Milwaukee Restart Program (Restart) is to help local businesses that suffered as a result of the pandemic to reopen and adapt to the “new normal”. Feel free to contact us for any help with small business coaching through these difficult times.

Eligibility

Restart grants will assist for-profit businesses located in the City of Milwaukee that have 20 or fewer full-time or full-time equivalent employees and greater than $0 but less than $2 million in 2019 revenue. Restart grants shall be limited to one per business owner. All applicants must be current on property taxes owed to the City of Milwaukee up through the 2018 tax bill.

For-profit Daycares will be eligible if they can demonstrate they have not continued to receive W-2 allocations during the pandemic or federal assistance.

The following business types are NOT eligible to apply:
gambling or gaming, national franchises, adult establishments, massage parlors, pawn shops, pay day loan or auto loan stores, home-based businesses, not-for-profits, tobacco stores, home-based businesses and liquor stores

Eligible Expenditures

Businesses may apply for the following expenses associated with re-starting business operations:

These calculations are provided to assist applicants to understand the maximum amount allowed. However, please note that final allocations will depend on available funding and demand for the program.

How to apply

As part of the application process, applicants are required to upload electronic versions of these documents:

Applications must be made online between 9:00 AM CDT on May 28, 2020 and will be accepting applications until 5:00 PM CDT on June 12, 2020. Applicants will need to create an account to apply. This will allow users to save progress on their applications should they need additional time to fill out the application. Please make sure to keep a note of your user name and password. Click here for the Milwaukee Restart Application .

Grant Follow Up

All businesses receiving Restart assistance will be required to complete a follow-up survey after the grant is awarded. Grant recipients must keep detailed records on reopening dates, receipts for expenditure of grant funds, and staff and payroll records.

The post Milwaukee Restart Grant Program appeared first on Talking Tax to Milwaukee .

Additional Grant Becomes Available For Wisconsin Small Businesses

Fri, 05 Jun 2020 16:14:00 GMT

Over the past few months COVID-19 has changed the way a lot of small businesses operate . Some have been unable to be open, some have adapted and changed, and some have even thrived. The Government had made a few loans available to try and help small businesses keep their employees employed and to also cover some overhead expenses. Now, locally, the State of Wisconsin is offering a grant of their own to local small businesses.

“We’re All In” is a pandemic relief grant for small businesses in the State of Wisconsin.

HOW IT WORKS

Funded by the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, the We’re All In Small Business Grant Program will provide $2,500 to 30,000 Wisconsin small businesses to assist with the costs of business interruption or for health and safety improvements, wages and salaries, rent, mortgages and inventory.

ELIGIBILITY REQUIREMENTS

To be eligible, businesses must:

Find out more information regarding the We’re All In Small Business Grant, please review this page of frequently asked questions .

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Finding the Right Accountant to Successfully Guide You Through the Tax Maze

Fri, 14 Jun 2019 19:02:00 GMT

Choosing an Accountant Who Puts Your Goals First

There is an endless supply of do-it-yourself tax preparation tools and websites, and the sheer volume of options can lead you to believe the process of filing your returns is simple.

However, a DIY approach only works if you are satisfied with paying more than necessary. Tax preparation software handles all of the basics, importing income and considering common tax deductions. Unfortunately, when it comes to careful application of less-common tax-reduction techniques, these programs simply can’t compete with a skilled tax professional .

The Amazon Best Selling book, The Great Tax Escape, walks you through the process of choosing a business accountant . Specifically, you will learn what to look for – and what to avoid – if you want a tax specialist who will help you keep your tax bill low.

Five Reasons to Hire a Highly-Qualified Accountant

As you know from your experience in business settings, companies that focus on their core mission are more successful. Devoting internal resources to creating excellent products and services, while outsourcing peripheral functions like IT and HR, makes it possible to innovate and deliver best-in-class solutions.

Focusing on your core mission is just as critical when it comes to tax preparation. The time you would spend trying to track down tax information is better applied elsewhere, and you are likely to pay more in the end anyway. These are five ways your accountant will free up resources for you to use in ways that will further your personal mission:

Learn more about why and how to choose the right accountant for all of your tax preparation needs by requesting a copy of The Great Tax Escape from our website.

The post Finding the Right Accountant to Successfully Guide You Through the Tax Maze appeared first on Talking Tax to Milwaukee .

Finding the right accountant to successfully guide you through the tax maze

Fri, 15 Feb 2019 21:47:00 GMT

Choosing an Accountant Who Puts Your Goals First

There is an endless supply of do-it-yourself tax preparation tools and websites, and the sheer volume of options can lead you to believe the process of filing your returns is simple. And if you're a small business, taxes get even more complex which is why business accountants are so critical.

The Amazon Best Selling book, The Great Tax Escape, walks you through the process of choosing an accountant. Specifically, you will learn what to look for – and what to avoid – if you want a tax specialist who will help you keep your tax bill low.

Five Reasons to Hire a Highly-Qualified Accountant

Learn more about why and how to choose the right accountant for all of your tax preparation needs by requesting a copy of The Great Tax Escape from our website.

The post Finding the right accountant to successfully guide you through the tax maze appeared first on Talking Tax to Milwaukee .

Does my Rental Property Qualify for the New Section 199A Deduction Under Tax Reform?

Fri, 08 Feb 2019 18:46:00 GMT

How do you know if your rental property qualifies for the 20 percent tax deduction under new tax code Section 199A? Just what we need–something else to learn along with all of the other tax code changes this year.

Well, maybe not.

There is a piece of good news: we won’t be required to learn this tax code because everything we need to know about it is in the new regulations proposed by the IRS. Existing rules govern.

Does the IRS deem your rental property a business? If so, then yes, your property qualifies for the deduction.

It might sound strange to think of your rental property as a business, especially if you now report the rental on Schedule E of your 1040.

If your rental property is carefully selected, maintained indoors and out, and managed efficiently, it can provide residual income, capital gains, and tax advantages, including the 199A deduction in many cases.

How Does a Rental Property Qualify as a Business?

If the rental property you own earns a profit, you own a business. Whether you manage it or you hire a company or individual to manage it, it still qualifies for the 199A deduction.

And the news gets better….

Schedule E rentals also qualify for even sweeter tax benefits. There are two ways the IRS treats rental activity as a business for the Section 199A deduction:

All of this can be confusing. Would you like help discerning whether your rental properties qualify for the new 20 percent Section 199A tax deduction? If so, please contact one of our qualified tax professionals. We can help with all of your Milwaukee rental property tax questions.

The post Does my Rental Property Qualify for the New Section 199A Deduction Under Tax Reform? appeared first on Talking Tax to Milwaukee .

Do You Truly Know Your Business Costs? You Better!

Fri, 07 Dec 2018 17:03:00 GMT

Your company’s profitability depends not only on sales, but also on effective cost management. Are you adequately addressing the cost side of the business equation?

Analyze Your Cost Structure

You probably can readily identify the products and/or services that are generating your greatest sales volume. But can you identify all the costs associated with providing each product or service? Only when you know your true costs can you effectively allocate resources to the work that is most profitable for your company.

Actively Monitor Operations

As the busy owner of a small business, you can’t be everywhere all the time. But you do need to stay in circulation, regularly observing the day-to-day operations of your business and talking to your managers and employees. By staying visible and encouraging an open dialogue, you’ll be in a better position to uncover costly problems before they seriously erode your company’s bottom line.

Solicit Bids

Even if you are satisfied with a current vendor, you may want to talk to the competition from time to time. You won’t necessarily want to switch vendors simply because you are quoted a better price. But you may be able to use that price in negotiating more favorable terms from your existing supplier.

Watch for Discounts

In the interests of cash flow, your company may routinely pay its bills only when they come due. While this generally is a sensible strategy, it may not be wise if you are passing up generous cash discounts for earlier payment. In the current low interest rate environment, borrowing the funds you need to take advantage of discounts may be a better move. For example, suppose a vendor offers your company a 2% discount for paying a $10,000 invoice 20 days early. Passing up the discount will cost you $200. Instead, you might borrow $9,800 from your bank, pay the discounted invoice, and repay the loan in 20 days. If the rate on your bank line of credit is 8%, you’ll owe about $45 of interest — for a net savings of $155 on just one invoice.

Effective cost management requires good information and careful planning.

The post Do You Truly Know Your Business Costs? You Better! appeared first on Talking Tax to Milwaukee .

2018 Tax Changes: Frequently Asked Questions

Fri, 30 Nov 2018 16:26:00 GMT

As we move closer to the tax filing season, the Tax Cuts and Jobs Act (TCJA) has raised many questions in regards to tax preparation for Milwaukee taxpayers. Below are answers to some of them.

Do I need to adjust my withholding allowances, given that tax brackets have changed?

You may notice a change in your net paycheck as a result of the tax law, which alters tax rates, brackets, and other items that affect how much tax is withheld from your pay. The IRS has already issued new withholding tables, and your employer should adjust its withholding without requiring any action on your part. But you may want to take the opportunity to make sure you are claiming the appropriate number of withholding allowances by filling out IRS Form W-4. This form is used to determine your withholding based on your filing status and other information. The IRS suggests that you consider completing a new Form W-4 each year and when your personal or financial situation changes.

Can I take advantage of the new deduction for pass-through business income?

The new rules for owners of pass-through entities — partnerships, limited liability companies, S corporations, and sole proprietorships — allow them to deduct 20% of their business pass-through income. The 20% deduction is available to owners of almost any type of trade or business whose taxable income does not exceed $315,000 (joint return) or $157,500 (other returns). Above those amounts, the deduction is subject to certain limitations based on business assets and wages. Different deduction restrictions apply to individuals in specified service businesses (e.g., law, medicine, and accounting).

Can I still deduct mortgage interest and real estate taxes paid on a second home?

Yes, but the new rules limit these deductions. The deduction for total mortgage interest is limited to the amount paid on underlying debt of up to $750,000 ($375,000 for married individuals filing separately). Previously, the limit was $1 million. Note that the new restriction will not apply to taxpayers with home acquisition debt incurred on or before December 15, 2017. Additionally, the deduction for interest on home equity loans (new and existing) is suspended and will not be available for tax years 2018-2025.

Note that the law also establishes a $10,000 limit on the combined total deduction for state and local income (or sales) taxes, real estate taxes, and personal property taxes. As a result, your ability to deduct real estate taxes may be limited.

Are there any changes to capital gains rates and rules that I should know about?

The rules concerning how capital gains are determined and taxed remain essentially unchanged. But since short-term gains (for assets held one year or less) are taxed as ordinary income, they will be taxed at the new ordinary income rates and brackets. Net long-term gains will still be taxed at rates of 0%, 15%, or 20%, depending on your taxable income. And the 3.8% net investment income tax that applies to certain high earners will still apply for both types of capital gains.

2018 Long-Term Capital Gains Breakpoints

Can I still deduct my student loan interest?

Yes. Although some earlier versions of the tax bill disallowed the deduction, the final law left it intact. That means that student loan borrowers will still be able to deduct up to $2,500 of the interest they paid during the year on a qualified student loan. The deduction is gradually reduced and eventually eliminated when modified adjusted gross income reaches $80,000 for those whose filing status is single or head of household, and over $165,000 for those filing a joint return.

I have a large family and formerly got to take an exemption for each member. Is there anything in the new law that compensates for the loss of these exemptions?

The new law suspends exemptions for you, your spouse, and dependents. In 2017, each full exemption translated into a $4,050 deduction from taxable income which, for large families, added up. Compensating for this loss, the new law almost doubles the standard deduction to $12,000 for single filers and $24,000 for joint filers. Additionally, the child tax credit is doubled to $2,000 per child, and the income levels at which the credit phases out are significantly increased. Depending on your situation, these new provisions could potentially offset the suspension of personal exemptions.

I have been gifting friends and relatives $14,000 per year to reduce my taxable estate. Can I still do this?

Yes, you may still make an annual gift of up to $15,000 in 2018 (increased from $14,000 in 2017) to as many people as you want without triggering gift tax reporting or using any of your federal estate and gift tax exemption. But TCJA also doubles the exemption to an estimated $11.2 million ($22.4 million for married couples) in 2018. So anyone who anticipates having a taxable estate lower than these thresholds may be able to gift above the annual $15,000 per-recipient limit and ultimately not incur any federal estate or gift tax. Note, however, that the higher exemption amount and many of TCJA’s other changes to personal taxes are scheduled to expire after 2025, unless Congress acts to extend them.

This communication is not intended to be tax advice and should not be treated as such. Each individual’s tax circumstances are different. You should contact your tax professional to discuss your personal situation.

The post 2018 Tax Changes: Frequently Asked Questions appeared first on Talking Tax to Milwaukee .

Take Advantage of Your Financial Statements

Fri, 16 Nov 2018 20:00:00 GMT

Financial statement information is most useful if owners and managers can use it to improve their company’s profitability, cash flow, and value. Getting the most mileage from financial statement data requires some analysis. It is important that business owners understand what their financial statement actually means.

Ratio analysis looks at the relationships between key numbers on a company’s financial statements. After the ratios are calculated, they can be compared to industry standards — and the company’s past results, projections, and goals — to highlight trends and identify strengths and weaknesses.

The hypothetical situations that follow illustrate how ratio analysis can give company decision-makers valuable feedback.

Rising Sales, Rising Profits?

The recent increases in Company A’s sales figures have been impressive. But the owners aren’t certain that the additional revenues are being translated into profits. Net profit margin measures the proportion of each sales dollar that represents a profit after taking into account all expenses. If Company A’s margins aren’t holding up during growth periods, a hard look at overhead expenses may be in order.

Getting Paid

Company B extends credit to the majority of its customers. The firm keeps a close watch on outstanding accounts so that slow payers can be contacted. From a broader perspective, knowing the company’s average collection period would be useful. In general, the faster Company B can collect money from its customers, the better its cash flow will be. But Company B’s management should also be aware that if credit and collection policies are too restrictive, potential customers may decide to take their business elsewhere.

Inventory Management

Company C has several product lines. Inventory turnover measures the speed at which inventories are sold. A slow turnover ratio relative to industry standards may indicate that stock levels are excessive. The excess money tied up in inventories could be used for other purposes. Or it could be that inventories simply aren’t moving, and that could lead to cash problems. In contrast, a high turnover ratio is usually a good sign — unless quantities aren’t sufficient to fulfill customer orders in a timely way.

These are just examples of ratios that may be meaningful. Once key ratios are identified, they can be tracked on a regular basis.

Milwaukee small business accounting specialist, Hammernik & Associates, helps small business owners in Wisconsin understand their financial statements to maintain profitability and reduce tax burdens. Please contact our office to let us review your prior financial statements to make sure you are on the right track.

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7 Best Practices for QuickBooks Online

Fri, 09 Nov 2018 17:03:00 GMT

Even if you’ve been using QuickBooks Online for a long time, it’s good to step back and evaluate your actions.

Milwaukee small businesses have many different ways in which they keep track of their accounting. It typically depends on how the business owner prefers to operate. QuickBooks Online is the present and the future of bookkeeping. It allows a business owner to track their financial statements in real time, while also giving their accountant access to reconcile everything.

“Best practices” aren’t enforceable rules. They’re simply guidelines businesses commonly follow in one area or another. If you’re in retail, for example, one best practice might be to always ask customers checking out if they found everything they were looking for. This serves two purposes: It conveys a feeling of concern for the customer’s shopping experience, and it may also lead to increased sales.

QuickBooks Online has many best practices, some of which may serve multiple purposes, including these:

Are any or all the following common practices for your business?

Reconcile accounts regularly.

One of QuickBooks Online’s most useful features is its ability to connect to your financial institution’s websites and download cleared transactions. QuickBooks Online also offers tools to help you keep your accounts reconciled online, like you used to do every month when your paper statement came. Reconciling accounts can help you uncover errors. It gives you a truer picture of your cash flow, and it improves the accuracy and timeliness of some reports.

It’s not a particularly pleasant process, but you should be reconciling your accounts regularly in QuickBooks Online. We can help.

Clean up your lists.

Some lists in QuickBooks Online aren’t overly long. You don’t have to worry about, for example, Payment Methods, Terms, or Classes. Your lists of customers and vendors, products, and services, on the other hand, can grow unwieldy over the years. This means it can take more time than it should to scroll through lists when you’re using those entities in transactions. It also puts unnecessary stress on your company file. If you can’t delete any, at least make them inactive.

Never leave QuickBooks Online open when you leave your work area.

This goes for everyone, even people who work alone and don’t access their company files away from their work areas. The obvious reason is to keep someone else from getting in and authorizing payments, for example, or otherwise compromising your financial information. It also protects the integrity of your data file in case your internet connection suffers some kind of outage.

Keep track of 1099 vendors.

Whether your company uses 10 vendors or a hundred or more, you may have to supply at least some of them with an IRS Form 1099 at about the same time you’re preparing W-2s for employees. Your 1099-related tasks will be much easier if those individuals and/or companies are earmarked. If you think vendors might need 1099s when you create their records in QuickBooks Online, click in the box to the left of Track payments for 1099 in the lower right corner. Not sure? Ask us.

Classify everything with care.

Every time you have to create a record or transaction where categories are involved (i.e., Classes, Customers and Vendors, Territories), check and double-check that you’ve assigned them the correct classification. Errors here can result not only in problems with daily workflow, but your reports will not be accurate. A related best practice: Create a meaningful group of Classes, and use them faithfully. They’ll help you make better business decisions.

To create your list of Classes, click the gear icon in the upper right and select All Lists | Classes | New.

View reports on a regular basis.

There are some advanced financial reports in QuickBooks Online that we should be creating for you on a regular basis, either monthly or quarterly. These include Profit and Loss, Balance Sheet, and Statement of Cash Flows. The mechanics of creating them aren’t difficult, but analyzing them is. You should be running reports on your own at frequencies that you think would be helpful, like A/R Aging Detail, Unpaid Bills, and Sales by Class Detail.

If you’ve been using QuickBooks Online for a while, you could probably come up with your own list of best practices. If you’re new to the site, consider scheduling some time with us to go over more of them. Develop good habits from the start, and there won’t be nearly as much need for troubleshooting down the road.

Hammernik & Associates has a certified QuickBooks Pro Adviser on staff to help you keep your QuickBooks accurate and compliant. We also are able to get subscriptions at a discounted wholesale rate. Please contact our office if you need help cleaning up your QuickBooks or if you are interested in converting to QuickBooks. Milwaukee small business accounting and QuickBooks Online go hand in hand.

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The Dodgers are the IRS and the Brewers are Hammernik & Associates.

Fri, 12 Oct 2018 19:36:00 GMT

This is a satirical article and is not meant to be serious. No IRS agents were hurt in the writing of this article.

Brewers fever is rampant in Milwaukee. If you have been in my office before, you know how big of a Brewers fan that I am. As I am writing this, I am getting excited to head to Miller Park tonight to watch Game 1 of the National League Championship Series. I like to take any opportunity that I can to try and clash the sports world into the tax world. So, here’s my hot take….The Dodgers are the IRS and the Brewers are Hammernik & Associates.

The Dodgers have one of the highest payrolls in baseball. They bring in money and toss it around like it’s nothing. Remind you of someone? Ah yes, the IRS. The big market Dodgers think they can push the small market around with their buying power and authority, just like the IRS does with Milwaukee taxpayers.

The Brewers’ postseason slogan is, “Defend MKE”. Hammernik & Associates defends the taxpayers of Milwaukee against the IRS anytime that they receive a letter or audited by the IRS. Hammernik & Associates does everything that we can to use the deductions and credits available by IRS law to reduce the money that taxpayers pay the IRS. The best way to combat the big dog is to be knowledgeable and creative with tax law. General Manager, David Stearns, is one of the smartest men in baseball, and used his resources to put together a competitive roster. In addition, Manager, Craig Counsell, uses his creativity to do some out of the box thinking i.e. moving 3 ^rd basemen Travis Shaw to 2 ^nd base, bullpen game in the playoffs.

Dodgers= IRS, Brewers Management=Hammernik & Associates. Baseball games cannot be won without the players, and tax cannot be reduced without strategies. Let’s match some of the Brewers’ roster with tax deductions and credits!

Lorenzo Cain: Educator Expense Deduction – Lorenzo Cain is the smartest player on the field at all times. He not only is a leader, but he teaches the younger guys the right way to play the game.

Christian Yelich: Section 199-A Deduction – Chrisitan Yelich is new to the team just like the 199-A is new to the 2018 tax code. The 199-A deduction is a big-time deduction that is going to provide a huge tax break to small businesses. You see where I’m going here? Christian Yelich has been the main force behind the “small business” that is the Milwaukee Brewers.

Ryan Braun: Child Tax Credit – The child tax credit has been a consistent credit helping families out for years. As of 2018, the child tax credit went from $1,000 up to $2,000. Ryan Braun has been the one consistent on the Brewers over the past decade. This year he has brought his level of play close to the level we had grown accustomed to over the years.

Jesus Aguilar: American Opportunity Credit – The AOTC is one of the biggest credits available, as it offers up to a $2,500 credit. Jesus Aguilar (JESUS BOMBS) is the biggest human being on the roster and packs a big punch at the plate. The play on words here is very fitting as well. Jesus Aguilar was once a bench player, but took full advantage of his OPPORTUNITY to take over an everyday role.

Travis Shaw: Refundable Tax Credits – Refundable tax credits are the most versatile types of tax credits, because they can be used to both reduce tax and get a straight refund. Travis Shaw was forced to become versatile when he was moved to 2B, and he has done a great job with the transition.

Mike Moustakas: Rental Property Deductions – There is a chance Moose comes back to the Brew Crew next year, but for the most part, he is a rental player for the year. Rental properties can be a very good investment….just like Moustakas.

Orlando Arcia: Entertainment Expense Deduction – Watch Arcia snag balls at shortstop….Are you not entertained?!

Erik Kratz: The Senior Tax Credit – He may be only 38, but Kratz Daddy is a senior citizen based on MLB standards.

Manny Pina: Theft & Casualty Loss Deduction – Don’t even try swiping 2 ^nd base on Manny…otherwise, you to will need to take a theft loss deduction.

Jonathan Schoop: Gambling Loss Deduction – This is the only negative one on the list. Almost every gamble David Stearns has taken in free agency and the trade market has paid off, but not this one (so far). With all the gambling winnings Stearns has made, he will need to take this loss to reduce the tax on those winnings.

Jeremy Jeffress: Wisconsin Subtractions From Income – It’s no secret that JJ thrives when he is pitching in Milwaukee, and has struggled during his tenure with other teams. Jeffress has his most success when living in Wisconsin.

There you have it. The Milwaukee Tax Deduction roster. Let me know if you have any good comparisons of your own.

Let’s Go Crew!

Nicholas Hammernik, EA, CTC

The post The Dodgers are the IRS and the Brewers are Hammernik & Associates. appeared first on Talking Tax to Milwaukee .

$100 Child Tax Rebate Available For Wisconsin Residents

Mon, 14 May 2018 18:39:00 GMT

Christmas has come early for Wisconsin residents with qualified dependent children. Beginning tomorrow, May 15th, Wisconsin residents can apply for a $100 per child tax rebate online. The purpose of the rebate is to repay sales tax for expenses associated with raising a child. The rebate will return an estimated $122 million to qualified Wisconsin taxpayers. Wisconsin taxpayers have until July 2nd to claim the rebate.

Claim the rebate here —> https://childtaxrebate.wi.gov/_/

Who is qualified to receive the rebate?

Taxpayers with dependent children may qualify, if:

Child must be:

If you DID NOT claim your child as a dependent on your tax return for 2017, you are not eligible to claim the rebate.

What You Need to File Your Claim

Spread the word about the credit to your friends and family. It is a use it or lose it credit that must be claimed by the July 2nd deadline. If you have any questions regarding the credit, please feel free to contact our office.

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BREAKING: Budget Bill Signed Causes Change To 2017 Tax Law

Fri, 09 Feb 2018 18:10:00 GMT

Almost two weeks into the 2017 tax filing season, and we get this news bomb laid on us….This morning, in order to avoid another Government shutdown, President Trump signed a budget bill which retroactively extends a few tax laws that had expired for 2017. If you have already filed your tax return, you might need to file an amended tax return to claim some of these deductions.

The most notable changes include:

Exclusion for discharge of indebtedness on a principal residence
The provision extends the exclusion from gross income of a discharge of qualified principal residence indebtedness through 2017. The provision also modifies the exclusion to apply to qualified principal residence indebtedness that is discharged pursuant to a binding written agreement entered into in 2017.

Premiums for mortgage insurance (PMI) deductible as mortgage interest
The provision extends the treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction through 2017. This deduction phases out ratably for taxpayers with adjusted gross income of $100,000 to $110,000.

Above-the-line deduction for qualified tuition and related expenses
The provision extends the above-the-line deduction for qualified tuition and related expenses for higher education through 2017. The deduction is capped at $4,000 for an individual whose adjusted gross income (AGI) does not exceed $65,000 ($130,000 for joint filers) or $2,000 for an individual whose AGI does not exceed $80,000 ($160,000 for joint filers).

Three-year depreciation for race horses 2-years-old or younger
The provision extends the 3-year recovery period for race horses to property placed in service during 2017.

Also incorporated into the bill is a series of additional provisions that will go into effect for the 2018 tax year. The following are noteworthy:

Requirement for new Form 1040SR for seniors
The provision requires that the IRS publish a simplified income tax return form, designated a Form 1040SR, for use by persons who are age 65 or older by the close of the taxable year. The form is to be as similar as possible to the Form 1040EZ. The use of Form 1040SR is not to be restricted based on the amount of taxable income to be shown on the return, or the fact that the income to be reported for the taxable year includes social security benefits, distributions from qualified retirement plans, annuities or other such deferred payment arrangements, interest and dividends, or capital gains and losses taken into account in determining adjusted net capital gain. This provision is effective for taxable years beginning after the date of enactment.

Prohibition of modifying user fee requirements for installment agreements
The provision prohibits increases in the amount of user fees charged by the IRS for installment agreements. In addition, the IRS is required to waive the fees imposed for installment agreements for taxpayers whose income falls below 250 percent of the poverty line and have agreed to make the payments by electronic means through a debit account. Further, for those taxpayers whose income falls below 250 percent of the poverty line, are unbanked, and successfully complete an installment agreement, the fee would be reimbursed at the end of the installment agreement period.

Individuals held harmless on improper levy on retirement plans
The provision allows amounts, including interest, returned to an individual from the IRS pursuant to a levy to be contributed to the IRA, or employer-sponsored plan, without regard to normal contribution limits. In addition, the IRS is required to pay interest on an amount returned. The provision is effective for levied amounts, and interest thereon, returned to individuals in taxable years beginning after December 31, 2017.

Hammernik & Associates is here to keep up with the tax law changes to make sure you receive the proper deductions and credits. Please contact us if there was something extended that applies to you, and you need to amend a tax return.

The post BREAKING: Budget Bill Signed Causes Change To 2017 Tax Law appeared first on Talking Tax to Milwaukee .

Tax Reform Benefits For Small Business Owners

Fri, 26 Jan 2018 17:20:00 GMT

One of the main focuses of the tax reform was to provide tax breaks to both small business and corporations. This includes sole proprietors whom file a Schedule C on their tax return. So, if you have been thinking of starting your own business, 2018 is the time to do it. The tax savings on pass through entities is going to greatly impact small business owners in Milwaukee, Waukesha, and all of Southeastern Wisconsin. It will be important to begin tax planning throughout the year to make sure you make adjustments based on the new laws. Let’s take a more in-depth look at the specifics of the deductions….

Tax Reform Provides New 20% Deduction

The new 2018 Section 199A tax deduction that you can claim on your IRS Form 1040 is a big deal. There are many rules (all new, of course), but your odds as a business owner of benefiting from this new deduction are excellent.

Rejoice if you operate your business as a sole proprietorship, partnership, or S corporation, because your 2018 income from these businesses can qualify for some or all of the new 20 percent deduction.

You also can qualify for the new 20 percent 2018 tax deduction on the income you receive from your real estate investments, publicly traded partnerships, real estate investment trusts (REITs), and qualified cooperatives.

When can you as a business owner qualify for this new 20 percent tax deduction with almost no complications?

To qualify for the 20 percent with almost no complications, you need two things: First, you need qualified business income from one of the sources above to which you can apply the 20 percent. Second, to avoid complications, you need “defined taxable income” of

Example . You are single and operate your business as a proprietorship. It produces $150,000 of qualified business income. Your other income and deductions result in defined taxable income of $153,000. You qualify for a deduction of $30,000 ($150,000 x 20 percent).

If you operate your business as a partnership or S corporation and you have the qualified business income and defined taxable income numbers above, you qualify for the same $30,000 deduction. The same is true if your income comes from a rental property, real estate investment trust, or limited partnership.

Some unfriendly rules apply to what Section 199A calls a specified service trade or business, such as operating as a law or accounting firm. But if the doctor, lawyer, actor, or accountant has defined taxable income less than the thresholds above, he or she qualifies for the full 20 percent deduction on his or her qualified business income.

In other words, if you are a lawyer with the same facts as in the example above, you would qualify for the $30,000 deduction.

Once you are above the thresholds and phaseouts ($50,000 single, $100,000 married filing jointly), you can qualify for the Section 199A deduction only when

Phaseout for New 20% Deduction

If your pass-through business is an in-favor business and it qualifies for tax reform’s new 20 percent tax deduction on qualified business income, you benefit at all times, including being above, below, or in the expanded wage and property phase-in range.

On the other hand, if your business is a specified service trade or business (doctors, lawyers, accountants, actors, athletes, traders, etc.), it is in the out-of-favor group and you benefit only when you are in or below the phaseout range.

Once your taxable income exceeds the threshold amounts above, you arrive in one of the four possible categories below:

If your taxable income is going to be above the threshold amounts that trigger the phase-in or phaseout issues, contact us so we can spend some time on your tax planning.

How the 20% Deduction Works for a Specified Service Provider

As discussed above, the 20 percent tax deduction under new 2018 tax code Section 199A is a very nice tax break for business owners, except for owners with high income who also fall into the out-of-favor group.

In general, the out-of-favor group includes lawyers, doctors, accountants, tax professionals, consultants, athletes, authors, securities traders, actors, singers, musicians, entertainers, and others.

Getting just a little more technical, the out-of-favor “specified service trade or business” group includes any trade or business

Notably, engineers and architects who had previously been in the out-of-favor professionals group somehow escaped the group with passage of this new law.

When you are a member of the out-of-favor group, your Section 199A deduction on your out-of-favor business is zero when you have taxable income of more than

Preserve the Deduction with an S Corporation

Will your business operation create the 20 percent tax deduction for you?

If not, and if that is due to too much income and a lack of (a) wages and/or (b) depreciable property, a switch to the S corporation as your choice of business entity may produce the tax savings you are looking for.

As mentioned above, to qualify for the full 20 percent deduction on your qualified business income under new tax code Section 199A, you need defined taxable income of less than $157,500 (single) or $315,000 (married).

If your taxable income is greater than $207,500 (single) or $415,000 (married), you don’t qualify for the Section 199A deduction unless you pay W-2 wages or have property.

Example . Sam is single, not in the out-of-favor specified service trade or business group (doctors, lawyers, consultants, etc.), operates a sole proprietorship that generates $400,000 of proprietorship net income, and has taxable income of $370,000. In this condition, Sam’s 20 percent Section 199A tax deduction is zero.

Here’s how the S corporation helps Sam. The S corporation pays Sam a reasonable salary, let’s say that’s $100,000. With this salary, Sam pockets

Tax Reform Destroys Entertainment Deductions for Businesses

First, lawmakers reduced the directly related and associated entertainment deductions to 80 percent with the 1986 Tax Reform Act. Later, in 1993, they reduced that 80 percent to 50 percent.

And now, with the newest tax reform, lawmakers simply killed business deductions for directly related and associated entertainment effective January 1, 2018.

For example, during 2017, you could take a prospect or client to a business dinner followed by the theater or a ballgame and deduct 50 percent of all the monies spent, providing you passed some tax law tests on business discussion and associated entertainment.

Now, in what you and I thought was a business-friendly tax reform package, you find that lawmakers exterminated a big chunk of business entertainment. You can no longer deduct entertainment that has as its mission the generation of business income or other specific business benefit.

The 2018 tax reform prohibition against deductible entertainment is true regardless of your business discussion, negotiation, business meeting, or other bona fide transaction.

Here’s a short list of what died on January 1, 2018, so you can get a good handle on what’s no longer deductible:

Entertainment That Survived Tax Reform

As just discussed above, you may no longer deduct directly related or associated business entertainment effective January 1, 2018.

Common forms of directly related and associated entertainment that are no longer deductible include business meals with clients or prospects, golf, football games, and similar business-building activities.

That’s the bad news. The good news is that tax code Section 274(e) pretty much survived the entertainment bloodletting. Under this section, you continue to deduct

When you are considering using the above survivors of tax reform’s entertainment cuts, you will find good strategies in the following:

If you would like our help implementing any of the strategies above, please don’t hesitate to contact us.

Tax Reform Cuts Deductions for Employee Meals to 50 Percent

Tax reform (Public Law 115-97) includes winners and losers.

Employers who for their convenience provided business meals for their employees are losers—50 percent losers to start and then total losers later.

Meal costs that were 100 percent deductible for perhaps a half century or more are now limited to 50 percent, and that 50 percent becomes a big fat zero deduction beginning January 1, 2026.

Employee meals that were 100 percent deductible but are now 50 percent deductible beginning January 1, 2018, include

For 2018, you need an account in your chart of accounts that says something like “meals subject to 50 percent cut.” In this category, you can put travel meals and the meals above.

Tax Benefit for Business Vehicle Trade-In Eliminated

Beginning January 1, 2018, tax reform no longer allows Section 1031 exchanges on personal property such as your business vehicle.

The trade-in was the most common 1031 exchange of a business vehicle. Now, because of tax reform, the vehicle trade-in is simply the sale of the old vehicle to the dealer and the purchase of a new vehicle. The sale to the dealer creates gain or loss on the sale just as it would on an outright sale.

But having a taxable event does not necessarily mean that you are going to pay more taxes. There’s more than one nifty silver lining for many business taxpayers in this lost ability.

For example, if you pay self-employment taxes, you usually come out ahead if you use the “sell and buy” strategy rather than the trade-in strategy (Section 1031 exchange).

With the sell-and-buy strategy, you save self-employment taxes because

Owners of S and C corporations don’t generate any self-employment tax savings on the sales and purchases of new vehicles. They just have gains and losses.

If you operate as a corporation and the sale or trade-in of your existing vehicle is going to produce a big taxable gain, why do it? Before tax reform, when you could avoid taxes with the trade-in, you could easily justify the newer vehicle. This isn’t the case with tax reform. More than ever, it’s important to calculate your tax result before you sell or trade in a vehicle or other personal property.

Tax Reform Creates Taxes on Employee Fringe Benefit for Bicycles

Tax reform created taxes on the employee fringe benefit for bicycles. You could (and can) deduct your costs for reimbursing employees for their qualified bicycle transportation costs. But tax reform now makes this bicycle transportation benefit a taxable event for your employees.

In what for this tax reform is an interesting twist, businesses may continue to pay the monthly $20 bicycle benefit, but they must add the benefit to the employee’s W-2 and subject it to withholding and payroll taxes. The employee continues to come out ahead with the bicycle reimbursement even though it’s taxable.

Example . Say the employee receives a $100 reimbursement and pays taxes at the 25 percent rate. The employee is $75 ahead ($100 – $25).

If you are an employer, you should consider continuing this fringe benefit because it does help your employee with his or her physical health and it costs you almost nothing. Because of tax reform, you’ll have to change your payroll for this fringe benefit, but that’s not likely to cause much trouble.

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What Does A Government Shutdown Mean For Tax Filing?

Mon, 22 Jan 2018 15:50:00 GMT

As everyone knows, the Government is currently shutdown. The IRS is part of the Government. So what does a shutdown mean for you when you file your tax return?

First, it is important to remember that the BEFORE the shutdown even happened, the IRS was not filing tax returns until January 29th. So, if the Government is back up and running by that time, business will go on as usual. However, if the Government is still shutdown a week from now, some things will be affected, while some may not.

Issues that would be put on hold:

Here’s a partial list of functions that directly impact taxpayers which will typically continue if the government shuts down:

To sum it up, the biggest issue here would be a delay in refunds being issued. However, you will still be able to file your tax return on 1/29/18. If you are typically an early filer, we would suggest you continue to do so. Filing early will reduce your chances of being a victim of ID theft. Please keep in mind this is the tentative plan and these plans can be changed. We will update with any changes as they happen.

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2018 Standard Mileage Rates Announced

Fri, 12 Jan 2018 18:14:00 GMT

As it does every year, the Internal Revenue Service has announced the inflation- adjusted 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable or medical purposes.

Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (or a van, pickup or panel truck) are:

The business standard mileage rate is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical purposes is based on the variable costs as determined by the same study. The rate for using an automobile while performing services for a charitable organization is statutorily set (it can only be changed by Congressional action) and has been 14 cents per mile for over 15 years.

Something to consider… The 2018 rates are based on 2017 fuel costs. Based on the potential for substantially higher gas prices in 2018, it may be appropriate to consider switching to the actual expense method for 2018, or at least keeping track of the actual expenses, including fuel costs, repairs, maintenance, etc., so that the option is available for 2018.

Taxpayers always have the option of calculating the actual costs of using their vehicle for business rather than using the standard mileage rates, as long as standard mileage was used in the first year the vehicle was operated. However, the standard mileage rates cannot be used if you have used the actual expense method in previous years. This rule is applied on a vehicle-by-vehicle basis. The business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles simultaneously.

Employer Reimbursement – When employers reimburse employees for business-related car expenses using the standard mileage allowance method for each substantiated employment-connected business mile, the reimbursement is tax-free if the employee substantiates to the employer the time, place, mileage and purpose of employment-connected business travel.

The Tax Cuts and Jobs Act eliminated employee business expenses as an itemized deduction, effective for 2018 through 2025. Therefore, employees may no longer take a deduction on their federal returns for unreimbursed employment-related use of their cars.

If you have questions related to the best methods of deducting the business use of your vehicle or the documentation required, please give us a call or ask your tax consultant during your tax meeting.

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Wisconsin Taxpayers CANNOT Prepay 2018 Real Estate Taxes

Tue, 26 Dec 2017 20:21:00 GMT

There are news articles out there encouraging taxpayers to prepay their 2018 property taxes now to save money in taxes. While this would be an effective strategy for some taxpayers due to the higher standard deduction in the tax reform, it is not going to work in Wisconsin. Some other states, mainly on the east coast, have a different way of billing for property taxes which may allow them to pay for 2018 now. However, based on Wisconsin state statutes you cannot do that if you own real estate here. Wisconsin is just billing out the 2017 real estate taxes now, your 2018 assessment will not be available until next year.

Here is what your local village or county will tell you:

The Village is not collecting 2018 property taxes which are due January 31, 2019. Per state statute, the Village may not accept prepayments on 2018 taxes in 2017.

State statute 74.13(1)(b)(3) reads “…General property taxes, special assessments, special charges and special taxes may be paid in advance of the levy during the period from August 1 until the 3 ^rd Monday in December.” 2018 property tax amounts will not be available until December 2018.

While it may be a good idea for some to try and take advantage of the last year with the old rules of itemize deductions, unfortunately this is not an option. However, if you typically pay your real estate tax bill in installments, it may make more sense for you to pay your entire 2017 tax bill before the year ends.

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Small Business Owners: Year End Reminders That Will Keep You Compliant & Save You Tax

Fri, 08 Dec 2017 18:24:00 GMT

As 2017 winds down, it is important for business owners to analyze how the year has went before it is too late. Taking a look at the situation now could present you the opportunity to save money in taxes when it comes time to prepare your tax return.

We hope you have achieved all the goals you set for 2017, and have 2018 goals ready to implement!

If you didn’t achieve or set goals for 2017…Why not? Without a game plan and goals you get what you set… NOTHING!

Things to do before year end & reminders

These are reminders to all Wisconsin small business owners to help stay compliant with IRS laws and also save money in tax.

Christmas Gifts/Bonus – Gifts and/or bonuses paid to employees in excess of $25.00 must be included in W-2 income as payroll.

Christmas Party:

W-2’s – Make sure all employee information is correct prior to filing W-2’s. This includes name, address, and social security number.

1099’s

There are a variety of 1099 forms that account for other sources of income. Issuers must mail out these 2017 forms to recipients by January 31, 2018 . The most common form, Form 1099-MISC, must be provided to the non-employee and submitted to the IRS for everyone to whom you paid at least $600 or more during the tax year . It is important to note that this 1099-MISC deadline applies when reporting non-employee compensation (Box 7).

Mileage

The rate for 2017 is 53.5 cents per mile. 2018 rate has yet to be released, but usually it is calculated based on cost to maintain a vehicle on the road ( Gas prices are a big variable).

Keep track of:

Charity or Advertising?

Why does it matter? There are limitations for how much you can deduct of charity deductions. When helping out a cause, is there a way to promote your business? If so, document this and it will move the deduction to advertising.

Bad Debts

You cannot have a bad debt if you are on a cash basis unless it’s a NSF check that’s noncollectable!

Equipment Needs

Is there a piece of equipment your business needs (not wants)?

Old Records/Files

Corporations

Inventory:

Do you have your year-end inventory planned? The IRS requires that you must take a physical count of all inventories on hand as of December 31. This list would include a description of each inventory item, quantity on hand, unit price, and total cost. Work-in-progress inventory is valued at the cost of materials, labor, and other direct costs included in the unfinished inventory items as of December 31.

Wishing you and your family the best this holiday season!

Hammernik & Associates

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Bitcoin Mania & How The IRS Taxes Bitcoin

Fri, 01 Dec 2017 16:30:00 GMT

Bitcoin mania is upon us. It has been widely publicized that the cryptocurrency, Bitcoin, has reached record highs in value over the past month. Investors are making nice profits with Bitcoin, and the IRS is trying to find a way to get their share of tax on those profits.

So, what is Bitcoin?

Per Wikipedia:

The IRS Wants Their Cut

There is not a middle man, which would usually be a bank, when Bitcoin is bought or sold. Therefore, there is not a third party administrator to report these transactions to the IRS. The IRS has realized that there are billions of dollars being made, and they want their tax! In November 2016, they put in a request to the court system to obtain the data of users that have transferred Bitcoin. Their reasoning is this, “There has been an explosion of billions of dollars of wealth in just a few years from bitcoin, a significant amount of which has no doubt accrued to United States taxpayers, with virtually no third-party reporting to the IRS of that increase in income.”

On Wednesday, the Court awarded the IRS a small victory in the case. Although the IRS did not get everything they asked for, they were awarded the following information from the largest Bitcoin platform, coinbase.com.

The Court has ordered Coinbase to produce the following customer information:

However, that information is limited to those accounts with at least $20,000 in any one transaction type (buy, sell, send, or receive) in any one year from 2013 to 2015 .

These are the only records that Coinbase needs to provide at this time.

This determination likely means that many account holders are breathing a sigh of relief…for now. But as virtually currency growsin popularity, with Bitcoin blowing past $11,000 this week, I can guarantee that IRS won’t stop with this request. Those who are buying Bitcoin are currently making money – and the IRS wants a cut.

How Is Bitcoin Taxed?

The IRS has determined that US taxpayers should treat digital currency as capital assets, as long as they are convertible into cash. Capital assets are taxed in two different ways, long term and short term. Long term sales, which means that the taxpayer held the currency for at least 1 year before the sale, is taxed at long-term capital gains tax which is 0-20% depending on your tax bracket. However, if you decide to sell your cryptocurrency in less than one year, it will be taxed at your normal federal tax rate.

There is a large problem that exists in determining the sale of Bitcoin. As mentioned earlier, the currency can be used to pay for services. You can buy online services, retail services, and even food. Vendors have begun to accept Bitcoin as a form of payment, similar to credit cards or PayPal. The IRS’ position on this matter is that any time a purchase is made, that is considered a sale of Bitcoin. If there was any profit on the Bitcoin from the original date of purchase, that would be considered a gain.

Are taxpayers required to report income from Bitcoin? The answer is yes. Bitcoin is the same as trading stocks. Any profit that you make is income, and that income should be taxed. However, as previously mentioned, there is no third party to report this income to the IRS. For instance, when you sell stocks, your stock broker will report that trade on tax form 1099-B to the IRS. The reality is, very few Bitcoin transactions are being reported to the IRS. 2013: 807/150M tax returns reported Bitcoin transactions, 2014: 893/151M tax returns reported Bitcoin transactions, 2015: 802/153M tax returns reported Bitcoin transactions.

The bottom line is, the government is seeking better compliance with the buying and selling of cryptocurrency. The battle between the IRS and Coinbase will continue. If the IRS gets a hold of records that show you sold Bitcoin, and you did not report it as income on your tax return, expect a love letter from them in the future. Please note that the most recent Court resolution only releases data from 2013-2015 for transactions in excess of $20,000.

Should You Invest In Bitcoin?

The answer is different for everybody. You need to ask yourself, what kind of investor am I? If you consider yourself an aggressive investor, you might want to research Bitcoin. If you are conservative with your investing, it is probably best that you stay away. Bitcoin is very volatile. This means that the potential for a big profit is there, but you also have to be okay with losing all of your investment. Do your research first.

If you did not think that you needed to report Bitcoin sales in the past, you will want to consider going back and amending (changing) your tax return for the year of sale to report the transaction. If the IRS receives information that shows you made a sale, and did not report it, they will assess you the tax due plus interest and penalties. Please email me with any questions regarding Bitcoin.

Nicholas Hammernik, EA

nhammernik@hammernikassoc.com

Hammernik & Associates is located in West Allis, WI and helps taxpayers in the Milwaukee area with tax planning and tax preparation.

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Avoid The Animal House That Is Black Friday, Shop Small Tomorrow

Fri, 24 Nov 2017 17:13:00 GMT

The best part of Black Friday for me, is waiting for videos to surface online of straight up WWE fights happening in stores over a $20 item. It is hilarious, but sometimes sad, to see the extent that some people will go to in order to say that they saved 50% on Black Friday. It reminds me of the holiday classic, Jingle All The Way. This is such a hidden gem of a Christmas movie, starring Arnold Schwarzenegger and Sinbad, who go to extreme lengths to get their hands on a Turbo Man toy for Christmas. Do not mess with someone that looks the way Arnold looks on Black Friday.

Nowadays, consumers have a much less stressful way to do their shopping….online. TAX GUY PSA: Remember that if you do not pay sales tax on your online purchases, you are to report these purchases on your Wisconsin tax return. Most online retailers now charge sales tax, however, there are still some purchases from sites such as Ebay or Amazon that do not charge you sales tax.

Tomorrow is the real day to do your shopping. Small Business Saturday. I promote Small Business Saturday every year for two reasons. 1) Our specialty is working with small business owners. I know how hard a small business owner works and the passion that they have for their business. 2) Small business success correlates with the success of your community. Keep your dollars inside of your own community instead of big box retailers in New York and California. The economic well being of your community is dependent on the success of the small businesses that occupy your community.

You won’t hear about all of the great deals that you can get on Small Business Saturday, because they don’t have millions of dollars to blow on advertisements like the retailers on Black Friday do. You can find local businesses in your area that are participating in Small Business Saturday here . Also, be on the lookout for your favorite local stores’ Facebook, Instagram, and Twitter pages to see what they are offering for Small Business Saturday. Avoid the stress today, shop small tomorrow.

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House Passes Tax Bill…What’s Next?

Fri, 17 Nov 2017 17:59:00 GMT

So, the House of Representatives passed their version of the tax bill yesterday. Does that mean everything in the bill is legal tax code now? What does that mean for your tax return? What is going on?!

As a young student, with the help of School House Rock, I learned how a bill becomes a law. The House approving the bill, is progress, but it is not finality. The progress of the bill turning into a law is now on the Senate. The Senate has their own version of the tax bill, that has many similarities, but has some twists to it. To make things even more complicated, the Chair of the Senate Committee of Finance, had the ability to “mark-up” the Senate bill. The Chairman’s Mark as it is called, gives him the ability to tweak the bill before putting it to a vote. The current chairman is Senator Orrin Hatch (R-Utah). I will try and break down the differences between the House version, the Senate version, and the Chairman’s Mark.

Tax rates

We currently have seven (7) tax brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.

Child Tax Credit

The credit is currently $1,000 and is refundable.

Obamacare Health Mandate

Above The Line Deductions ( Before your Adjusted Gross Income)

Currently, you can claim certain above-the-line expenses (meaning that you can claim them even if you do not itemize).

Business Taxes

Businesses use structures like limited liability companies (LLCs) or S corporations to pass-through income to the owners, escaping tax at the company level: Income is taxed at individual rates.

Buh-Bye Free Meals

Say goodbye to those free lunches. Under the proposal as outlined in the Chairman’s Mark, employers would no longer be able to deduct expenses for meals provided for the convenience of the employer on the employer’s business premises.

New Tax Form….More forms??!!

Simple, right? They are going to let me file my taxes on a postcard? NOPE. Under the proposal as outlined in the Chairman’s Mark, not only are tax forms not shrinking much, there would be a new tax form. The federal form 1040SR (as in senior citizen, so creativ) would be for use by persons who are age 65 or older by the end of the taxable year and would be “as similar as possible to the Form 1040EZ.” The difference is that the use of form 1040SR would not be limited by taxable income or by certain income types.

IRS Funding

You’re thinking more budget cuts, right? Despite the fact that the IRS has experienced significant cuts since 2010, the Senate doesn’t wish to continue down that path, saying, as part of the Chairman’s Mark: The proposal expresses the sense of the Senate that politically motivated budget cuts are counterproductive to deficit reduction, diminish the IRS’s ability to adequately serve taxpayers and protect taxpayer information, and reduce the IRS’s ability to enforce the law.

The Chairman wants to keep up with the uprising in identity theft, and also wants to make sure the IRS is capable of going and getting tax money that is theirs through audits.

Note: Earlier this year, President Trump suggested dropping the Internal Revenue Service (IRS) budget by $239 million.

Expiration Dates

You didn’t really think this was going to be permanent, right? As with the Bush tax cuts of 2000, not all of the proposed changes will be permanent. In this case, all individual income tax changes, except the elimination of the individual mandate penalty, would expire at the end of 2025. This includes the individual income tax rate cuts, the increased standard deduction, and the expanded child tax credit.

HOWEVAAAA…. Those corporate tax rates? They would be permanent…for now.

The Senate needs 50 votes to pass the bill. The GOP may need some help from Democrats on this as the majority in the Senate is not as overwhelming as it is in the House. IF…a big if…the Senate passes their version of the bill, the House and the Senate will then get together to reconcile the differences in each bill to come up with a final bill to present to the President. The House voting to approve their bill is a step towards a change in the tax law, but their are still some obstacles to get through for that to pass. We will keep you up to date with all the happenings with the tax bill, and are ready to assist you in tax planning to prepare for any changes that will affect your individual situation. If you have any questions about any parts of the tax bill proposals, please feel free to contact me at nhammernik@hammernikassoc.com.

Onward,

Nicholas Hammernik, EA

Hammernik & Associates provides tax services in West Allis, WI to the taxpayers of Southeastern Wisconsin and beyond. Keep up to date with all happenings in the tax world by following our blog, subscribing to our newsletters, and following us on Facebook .

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House Tax Bill Leaked

Thu, 02 Nov 2017 16:35:00 GMT

Since the election, taxes have been in the forefront of changes the Republican party has been trying to make. In previous posts, we had informed you of some of the ideas that President Trump wanted to see changed in the tax code when he took office. It has been a guessing game as to what will happen to our tax code and when it will happen. Today, we received an update of the House Of Representatives tax bill proposal. The entire tax bill has not been released, but here is a straightforward breakdown of how this proposal might affect Wisconsin taxpayers.

I like you, you’re cute…you can stay!

I guess we’re stuck with you for now

Upgrade!

Let’s see if a change is for the better…

So hard to say goodbye

Don’t let the door hit you on the way out

A lot of these tax bill ideas coincide with some of the original proposals that we have heard over the past year. I will provide updates once we get the full bill, but these are some ideas that have been leaked. Keep in mind, nothing is happening, until the bill actually passes. Hammernik & Associates will be with you along the way to help Wisconsin taxpayers adjust to any tax law changes.

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Equifax Update

Thu, 28 Sep 2017 16:46:00 GMT

IRS Only Issuing IPIN To Confirmed Victims

In an earlier post, we had suggested applying for an IPIN if you were a victim of the Equifax breach. However, the IRS has now come out with a statement in regards to this issue. Presumably due to high volume, the IRS will only accept ID Theft Affidavits and issue IPIN’s if you can confirm that somebody is using your personal information. They will not issue you an IPIN if you were affected by the breach and you do not have proof somebody is using your information.

The breach may include sensitive information such as Social Security numbers, date of birth addresses, and driver license numbers. To determine if your information may have been compromised, please visit equifaxsecurity2017.com or call 1-866-447-7559, 6:00 a.m. – Midnight, CT.

Many of you are considering a “credit freeze”. Before doing so, please know what this means:

What is a credit freeze?

Also known as a security freeze, this tool lets you restrict access to your credit report, which in turn makes it more difficult for identity thieves to open new accounts in your name. That’s because most creditors need to see your credit report before they approve a new account. If they can’t see your file, they may not extend the credit.

Does a credit freeze affect my credit score?

No. A credit freeze does not affect your credit score .

A credit freeze also does not:

Does a credit freeze stop prescreened credit offers?

No. If you want to stop getting prescreened offers of credit , call 888-5OPTOUT (888-567-8688) or go online . The phone number and website are operated by the nationwide credit reporting companies. You can opt out for five years or permanently. However, some companies send offers that are not based on prescreening, and your federal opt-out right will not stop those kinds of solicitations.

As you consider opting out, you should know that prescreened offers can provide many benefits, especially if you are in the market for a credit card or insurance. Prescreened offers can help you learn about what’s available, compare costs, and find the best product for your needs. Because you are pre-selected to receive the offer, you can be turned down only under limited circumstances. The terms of prescreened offers also may be more favorable than those that are available to the general public. In fact, some credit card or insurance products may be available only through prescreened offers.

Can anyone see my credit report if it is frozen?

Certain entities still will have access to it.

How do I place a freeze on my credit reports?

Contact each of the nationwide credit reporting companies:

You’ll need to supply your name, address, date of birth, Social Security number and other personal information. Fees vary based on where you live, but commonly range from $5 to $10.

After receiving your freeze request, each credit reporting company will send you a confirmation letter containing a unique PIN (personal identification number) or password. Keep the PIN or password in a safe place. You will need it if you choose to lift the freeze.

How do I lift a freeze?

In a few states, credit freezes expire after seven years. In the vast majority of states, a freeze remains in place until you ask the credit reporting company to temporarily lift it or remove it altogether. A credit reporting company must lift a freeze no later than three business days after getting your request. The cost to lift a freeze varies by state.

If you opt for a temporary lift because you are applying for credit or a job, and you can find out which credit reporting company the business will contact for your file, you can save some money by lifting the freeze only at that particular company.

What’s the difference between a credit freeze and a fraud alert?

A credit freeze locks down your credit. A fraud alert allows creditors to get a copy of your credit report as long as they take steps to verify your identity. For example, if you provide a telephone number, the business must call you to verify whether you are the person making the credit request. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they may not prevent the misuse of your existing accounts. You still need to monitor all bank, credit card and insurance statements for fraudulent transactions.

Three types of fraud alerts are available:

To place a fraud alert on your credit reports, contact one of the nationwide credit reporting companies. A fraud alert is free. The company you call must tell the other credit reporting companies; they, in turn, will place an alert on their versions of your report.

We do everything to keep your information safe, but we recognize devastating events like this happen, and will continue to happen. The procedures at the Internal Revenue Service only allow us to apply for an IPIN, a number to identify your tax filings as yours, when you are a victim of identity theft. Please notify us should you determine your identity has been compromised with this Equifax breach or any other event.

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Outdated AMT May Finally Be Eliminated

Fri, 22 Sep 2017 14:59:00 GMT

The proposed tax reform that is in the current limelight has different angles to it which could affect a wide array of American taxpayers. One of the proposed issues involves the AMT. You may be asking yourself, what the heck is AMT? Is that the machine that dispenses money? Haha no, it actually does the opposite, it takes your money. AMT is an acronym for Alternative Minimum Tax.

As a tax professional, it is one of the most difficult tax laws to explain to taxpayers. How do I explain to somebody that they can no longer deduct their real estate taxes because their income is now too high? You can do a web search to read up on all the technical details about what AMT is and how it works, but let me put it in plain English. The AMT is a tax law that was created 50 years ago to prevent the wealthy taxpayers from using loopholes to avoid paying the proper amount of tax. If you make a certain amount of money, you must pay a certain amount of tax, regardless of your deductions. Back then, you were considered wealthy if you were a married taxpayer showing $200,000 on your tax return. The original law was intended to affect a couple hundred taxpayers that fell into this category. Fast forward to 2017, $200,000 per year is now considered middle class. The AMT never accounted for inflation, so if you make $200,000 you are still subject to the AMT. This tax law now affects over 30 million taxpayers! In 2013, they did finally begin to adjust the threshold for inflation, but it is still affecting way more taxpayers that it was originally intended to affect.

The tax reform proposes that the AMT be eliminated. I am in favor of the elimination of this proposal. At the very least, it is time to turn the AMT into the law that it was originally intended to be. The .001% of taxpayers that it was intended to affect has ballooned into 10%. Adjusting the AMT to affect the original percentage of taxpayers would move the current 30 million affected down to 3,000.

Eliminating the AMT will allow middle class taxpayers to keep more of their hard-earned money. Almost every tax law out there has been innovated over time. It is time to get rid of this ancient tax law that is no longer serving the purpose it was intended to do. Can you imagine if wages were the same today as they were in 1959? A large portion of the world would be living in poverty. The times have changed, the AMT has not. It is time to make the change.

Nicholas Hammernik, E.A.

Nick Hammernik is a tax adviser in Milwaukee, WI.

nhammernik@hammernikassoc.com

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Experts warn of tax scams as deadline nears

Sat, 01 Apr 2017 18:44:00 GMT

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ICYMI : Nick Hammernik Talks Tax Scams To Milwaukee

Fri, 24 Mar 2017 13:59:00 GMT

In case you missed the radio segment which aired earlier this week on 89.7 FM, I hopped on the radio recently to talk about past, current, and future tax scams. It is our goal to educate our clients and the public of ways to avoid becoming victim to such scams. As always, please contact our office is you ever have any questions about this topic.

Listen Here : http://wuwm.com/post/avoiding-scams-tax-filing-season

h/t wuwm.com

Avoiding Scams This Tax Filing Season

BY MITCH TEICH

The often-dreaded April 15th deadline for filing tax returns to the federal and state governments is just under a month away. It’s a busy season for tax preparers – both professional and amateur.

But in the haste and the pressure many feel to get our taxes filed, it is also a season in which some of us could fall victim to scams or other fraud. The sophistication of tax scams has been on the rise for a few years now, according to tax consultant Nick Hammernik.

“2014 tax season is when we really started to notice things happening,” he says. “During that time, we were getting tax returns that were being rejected by the electronic filing system with the IRS because the tax return was already filed under their Social Security Number, which pretty much means that someone got a hold of their Social Security Number and filed a phony tax return under their name.”

Victims of this kind of scam do have recourse. Hammernik says they generally file a paper copy of their taxes with an identity theft affidavit and a copy of their legal identification. In response, the IRS issues them a pin number for the next time they file their taxes, and a different pin number for each additional year.

While Hammernik says issuing a pin number to everyone filing taxes may increase security, he admits that scammers would likely just start looking for ways to get hold of the pin numbers instead. Many scams depend on people being tricked by the scammers over phone or through email.

He warns that any financial information can be valuable to scammers and advises “to keep any financial records that you have, physical copies in a secure location, locked up. Electronic copies, you want to make sure that those are encrypted or stored in a secure location.”

Scammers often gain access to your computer by viruses spread by links in emails. “Anything online that you think is suspicious, do not click on it, do not respond to it,” says Hammernik.

He suggests reporting any suspicious emails or phone calls by contacting the IRS directly at: phishing@IRS.gov .

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Talking Tax Scams To Milwaukee

Fri, 24 Feb 2017 23:32:00 GMT

Today, I was fortunate enough to record a radio interview on The Lake Effect Radio WUWM 89.7FM . The interview topic was on tax scams and how they effect everybody. We are always trying to educate our clients on the tax scams that are out there to protect them from being taken advantage of. I have wrote about these topics many times before, but educating the public about them can not happen enough.

The tax industry is a prime target for criminals to attack. The first real threat to taxpayers came during the 2014 tax season when we began to notice that tax returns were being rejected by the e-file system due to a tax return already being filed under a social security number. To be honest, I am surprised that it took this long for tax returns to be the source of identity theft. Identity theft has been going on for years, but this was the first time it effected the tax industry. The IRS combated the issue by issuing PIN’s to those who’s identity had been compromised. We have seen a decline in the number of tax identity theft cases because of this, but it is still an issue.

The next real threat began in the summer of 2015. This is when we began receiving phone calls from our clients about phone calls that they were receiving from the IRS. We would get these phone calls almost daily, and you could tell some of our clients were really shook up by it. These scam phone calls threatened that if you didn’t pay tax that you owed, you would be put in jail. Since this time, the police have finally began to crack down on the call centers overseas that were conducting these calls. There has been a decline in the volume of call being made, but I know that they are not done.

The next phase of tax scams has shifted to e-mail. Not only are taxpayers being targeted, but tax professionals are also being targeted. As a taxpayer, never click on any link or respond to any e-mail that you are uncertain of. You can forward the e-mail to phishing@irs.gov. As tax professionals, we have received e-mails inquiring about our services. They are pretty easy to sniff out based on certain characteristics, so we have not fell subject to their attempt. Their end goal is to use our credentials to file a tax return or to try and hack into our database. All of our client information is kept in a secure, encrypted location. We keep up to date with all tax scams and take extreme precaution to ensure all client information is safe.

Criminal activity, and specifically scams are a never ending cycle. There is always going to be something that someone out there is going to try and exploit to make easy money. Hammernik & Associates will always be ahead of the curve in educating you about potential scams that are out their involving the tax industry.

Here are some key points to always remember….

Nick’s Tax Security Steps

Here’s a link to the IRS website that provides info on how to report suspected tax fraud activity:

https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity

The radio segment is set to air in the next couple of weeks. We will announce the day and time when it is known, and we will also post the audio when it becomes available.

Have a great weekend,

Nicholas Hammernik, EA

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Your College Scholarship Might Be Costing You Tax Credits

Fri, 17 Feb 2017 17:26:00 GMT

College tuition has become one of the biggest sources of debt for those who choose to further their education at a University. It is the burden that one takes on for improving their knowledge and skill set to further their career. A way to reduce the amount of tuition that you pay is to apply for certain scholarships and/or grants. This is a great way to reduce the amount of student loans to pay off down the road.

However, when it comes to scholarships and grants, they may be reducing the amount of education credits that you are receiving on your tax return. Education credits are based upon the amount of tuition that was actually paid. Thus, tuition that was paid with scholarships and grants does not count. When reporting Form 1098-T (tuition tax form) you will report both the total tuition and total scholarships/grants. The amount that can be used towards education credits is tuition-scholarships/grants. The American Opportunity Credit is the most beneficial education credit out there. This credit can be up to $2,500 for students in their first 4 years of college. The amount of credit that you will receive is based upon the amount of eligible tuition expenses that you have. Many times students with scholarships will not be able to maximize this full credit, because their tuition expenses just aren’t enough to do so.

So, how do we get the full education credits that are available?

Are you a parent that claims your child as a dependent and they have a scholarship or grant?

We have strategies available to maximize that credit for you and get you a larger refund. If you are someone in this situation and have yet to file your tax return, please contact our office before doing so. If you have already filed your tax return, we can look into amending your tax return if we think changing things will benefit you.

Don’t leave an extra refund out there, call 414-545-1890.

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Hey, Milwaukee…Tax Season Is Here!

Fri, 20 Jan 2017 15:19:00 GMT

When Will I Get My Tax Forms?

As I am writing this post on January 20, 2017, the IRS officially opens the 2016 tax return filing in 3 days. Tax season is here, which means that it is time to gather all of your tax documents that are needed to prepare a tax return. So, when will you be receiving all of these forms? These dates are also important if you are a business owner and need to issue any W-2’s or 1099’s.

Download Tax Organizer

Get Your Tax Return Won?

Having a background in marketing, I always pay attention to commercials and all aspects involved in them. Some people may change the channel when commercials are on, but I enjoy analyzing them. Naturally, I am even more interested when I see commercials during tax season. I realize that these large corporations have a massive marketing budget, and in most cases they are trying to repeatedly beat a message into your mind. However, I have found some of these campaign messages laughable. Last year, Turbo Tax is the company that really gave me a chuckle. “You don’t need to be a genius to do your own taxes”. While this statement is true(BREAKING NEWS: I AM NOT A GENIUS), you don’t need to be a genius to do 99% of things in life. There is a difference between being a genius and being an expert in your field. Do you need to be a genius to repair your car? No, but you take it to a mechanic because they are experts in fixing cars. The alternative is trying to fix it on your own, and then you run the risk of creating more damage and wasting your time. You can apply this reasoning to almost everything in life that you opt to have someone professionally do for you. You can try to do your own taxes, but is it worth the time and also the risk of a) dealing with the IRS or b) missing out on a potential extra refund.

This year, H&R Block hands down takes the cake so far. They have cast Jon Hamm to be their spokesman in a bunch of just weird commercials. Their message is “Get Your Tax Return Won”. How does one get their tax return won? I suppose their message is to try and make consumers feel like they became a winner when they got their taxes done at H&R Block? In that case, you get your tax return “won” if it is prepared correctly. I would think that if you are hiring a professional to help you with your taxes, a correct tax return is assumed. Broadcasting that this is a big deal to them just misses the mark in my opinion. The truth is, you can’t win against the tax system when filing your tax return. The outcome is already decided at that time, there isn’t anything you can change besides contributing to an IRA. Winning your tax return takes a game plan, a game plan that must be executed before the end of the year.

Hammernik & Associates motto is “More Than Just A Tax Return”. This means that we aren’t just here to help you file your taxes, we are here throughout the year to help you execute that winning game plan. Your game has already been decided for 2016, do you think you won or loss? Now is the time to begin the game for 2017. Who will win, you or the IRS? The only true way to get your tax return won is to set up a game plan now!

Inauguration Day

Today is the day a new President steps into office.Whether you are in favor or not in favor, it is important to be prepared for what may come. When Donald Trump was elected President, I put together an e-book of what he would like to do with tax law. Some of these ideas may never come to fruition, some may come sooner than you expect, some may come in the future, and some may come in a modified form. As we always stress, it is important to prepare for what may come in the future. Take a look to see if any of these may effect you positively or negatively. Either way, we will be on top of tax law changes for you. Major tax planning may be needed to prepare for some of the changes, that is what we are here for!

Download “Trump Tax”

Once you think you have all your tax documents, give us a call to schedule your appointment…we’re waiting!

Until next time,

Nicholas Hammernik, EA

The post Hey, Milwaukee…Tax Season Is Here! appeared first on Talking Tax to Milwaukee .

My Financial Past, Present & Future

Fri, 16 Dec 2016 17:51:00 GMT

With the holiday season upcoming, we thought it would be a great idea to compare your finances to the classic Christmas tale, “A Christmas Carol”. The main plot for this story is the life of one, Ebenezer Scrooge. The ‘Ghost of Christmas Past’ takes Scrooge back in time to remind him of how his life used to be and the way he used to act. The ‘Ghost of Christmas Present’ gives Scrooge a synopsis of his current daily life. Finally, the “Ghost of Christmas Future’ takes Scrooge into the future and shows him how his life will look in the future if he keeps living the same way he is in the present. So, let’s see how this compares to your financial situation…

My Financial Past, Present & Future

My Financial Past, Present & Future is the basis around our Year End Newsletter which is set to hit our client’s mailboxes next week. If you would like to view an electronic version of the newsletter, it can be viewed on the homepage of hammernikassoc.com . Also available there, you will find our tax organizer if you want to get a head start on gathering up all of your tax documents.

Merry Christmas & Happy Holidays!

…Tax Season Is Coming.

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Tax Filing Season Dates You Need To Know

Fri, 09 Dec 2016 19:47:00 GMT

2017 Filing Season Begins January 23rd

The IRS has announced that it will begin accepting electronically filed tax returns on January 23rd, 2017. What does this mean for taxpayers? You can have your tax return prepared earlier than the 23rd if you have all of your documents, however, the tax return cannot be submitted until 1/23/17.

Note: There is no advantage to trying to file a tax return earlier than this by mail, it will not get filed any earlier than the 23rd.

Tax Filing Deadline is April 18th

Typically when you think of the last day to file a tax return, you think April 15th. However, the Tax Gods blessed us with 3 extra days this year! Yay…

This year, April 15th falls on a Saturday. This results in having to move the day to the next business day, which is Monday. However, Monday the 17th is a legal holiday in Washington D.C., Emancipation Day. Therefore, Tuesday the 18th is the last day to file a tax return without an extension to avoid late filing.

Reminder: Refunds To Be Delayed

As I blogged about a couple of months ago, the IRS is delaying certain refunds until February 15th. If you file for certain credits on your tax return, your refund will be delayed to allow extra time to verify the credits that are claimed. The IRS is warning that these refunds may be delayed until February 27th based on workflow. Plan accordingly.

It is always important to plan ahead for your tax return filing. Identity theft is not dead, and a good way to combat it is to file as early as you can. Once you are confident you have all the necessary documents needed to file a tax return, schedule your appointment to come in!

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Small Business Saturday

Fri, 18 Nov 2016 16:00:00 GMT

Next Friday is Black Friday. Next Saturday is Small Business Saturday. Instead of waking up at 4 am to wait in line at a big box retailer on Friday, explore the small businesses that help your community thrive on Saturday. As a small business ourselves that specializes in helping small businesses with their accounting, Small Business Saturday is a movement that we are totally behind. A small business not only helps the economy of your community, but it also provides jobs to your community.

While we suggest that you support your small businesses throughout the year, American Express decided to dedicate a specific day to promote small businesses. They started the movement in 2010 and it has grown to the point where last year approximately 95 million people went out to shop at a small business last year. American Express also adds incentive to their credit cars holders by giving extra rewards for purchases at small businesses. You can search for local small businesses in your area here: SBS Locations . Some communities have come together to promote the day. Take for instance, the Third Ward. They have created a website dedicated to Small Business Saturday that displays the local small businesses and some deals that they are offering for the day: Third Ward SBS .

Through my experience working with small business owners, I have learned a lot about what small business is all about. A small business owner really loves what they do. They enjoy providing the services in which they provide, they enjoy helping their customers, and they enjoy being part of their community. There are not any corporate agendas involved, the business is like a family.

We help these owners with their small business accounting in Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa, West Allis, Mukwonago, Oconomowoc, and other surrounding cities. Our goal is to provide these business owners with more time to focus on growing their business.

Small Business Saturday this year is on Saturday, November 26th. Please show your support to the small businesses that you frequent often, or try out a new business for the first time. Save your money that you would give to a corporate business on Black Friday and use it to support your community. If you know of any small businesses that you think people should visit next Saturday, please feel free to share on our Facebook Page . You can follow along with the movement by using the hashtag on social media of #shopsmall .

Happy Small Business Saturday!

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Trump Tax: Uncertainty Ahead

Fri, 11 Nov 2016 15:50:00 GMT

My fellow American taxpayers,

On Tuesday night, Donald J. Trump was elected as the next President of the United States. Whether you are happy, upset or indifferent with that outcome, one thing is for certain, uncertainty with the tax code lies ahead. ‘Trump Tax’ is here. However, this is nothing new; the tax code is always evolving, it has been for the past 100 years. Just take a look at what a 1040 tax form looked like in the year 1913:

That’s right…one page. Today, some taxpayers have a tax return the size of a High School textbook. Hammernik & Associates wasn’t around in 1913, but we have been staying on top of the tax code for the last 30 years. Over that time span, there have been many overhauls, tweaks, and changes to the way you report your income tax today. No matter the uncertainty that lies ahead with your tax return, rest assured that Hammernik & Associates will use our proactive approach to keep or clients informed and prepared for possible change.

With that being said, Donald Trump wants to change your tax return. Does this scare you, or are you intrigued that his proposals might save you money?

TRUMP TAX PROPOSALS

Do you want to find out how Trump might effect YOUR tax bill? We have put together an E-Book, “The 7 Ways Donald Trump Wants To Change Your Taxes”. You can download this E-Book on the homepage of our website, www.hammernikassoc.com .

Hammernik & Associates will stay ahead of the Trump changes, as well as any other change to the tax law. We will help you tax plan for your unique tax situation. With tax uncertainty looming, it is a good idea to ask your tax professional about our tax planning packages when you meet with them in a few months. Make Hammernik & Associates your trusted candidate for the role of tax adviser in 2017 and the future.

P.S. Milwaukee tax accountants Dale Hammernik, Dave Biskup, and Nick Hammernik will be holding a ‘Trump Tax’ round table for a more in depth discussion of the tax proposals from Donald Trump. Stay tuned for the release of that video next week.

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What To Do With Leftover Halloween Candy

Fri, 04 Nov 2016 18:28:00 GMT

Our office is full of leftover Halloween candy. It is hard to walk by it all day an resist grabbing something to snack on. How about you? Did you sneak a stash of your kid’s candy for personal use. Halloween candy is like Thanksgiving dinner…there is always going to be leftovers! So, Milwaukee, can that leftover candy help with your tax preparation this year?

I came across this article from one of my favorite follows, Kelly Phillips Erb, who is a writer for Forbes.

13 Uses For Leftover Halloween Candy & The Resulting Tax Consequences

The title of this article can be a little tricky if you take it literally, but what a treat this article is to read. You can use the tax consequences in this article for any exchange of goods that apply.

A lot of this article is tongue and cheek, but #7 is actually a legitimate use for leftover candy. If you can find a qualified charitable organization that accepts candy, you can deduct the fair market value of the candy that you donate to them.

What about that costume that you wore for Halloween this year? Think you will ever use it again? If not, donate it to Goodwill and not only receive a tax deduction, but you might help out somebody looking for an affordable costume next Halloween!

While we are on the topic of charitable donations, Hammernik & Associates is jumping on board with Movember to raise awareness for men’s health. While you may be accustomed to always seeing Dale with a mustache, you might be seeing a few more mustached men around the office this month. Donate Here!

Enjoy this beautiful fall weekend!

Nicholas Hammernik, EA

Halloween circa 2007

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7 Year End Tax Moves To Make Now

Fri, 28 Oct 2016 16:26:00 GMT

The month of November is approaching, which means that there is about 2 months left to write the story of your 2016 income tax return. These moves may not apply to everyone, but it is good to have knowledge of them.

7 Year End Tax Moves

1) Plan Your Itemized Deductions: Will a higher deduction amount benefit you more next year than this year? If you suspect your income may be substantially higher in 2016 vs. 2017, plan to push more deductions to the higher income year. You can do so by utilizing your charitable deductions, mortgage interest, and real estate taxes .

4) Sell Stock: First of all, you should never base your investment strategies around tax. However, if you were planning on selling a stock sometime soon, now may be the time to do so. You can sell a stock at a loss to offset some of your income, or sell a stock at a gain if you believe you will be jumping to a higher tax bracket in the future. Consult with your financial adviser and tax adviser before doing so.

5) Avoid Penalties: The IRS and State penalize you if you do not pay in enough tax throughout the year. “Enough tax” means that you need to pay in at least 100% of what your 2015 tax liability was or 90% of your 2016 tax liability. To avoid penalty, you can catch up by making an estimated payment or changing your W-4 withholding.

6) Protect your 2016 Tax Refund: The IRS has announced that 2016 refunds will be delayed . If you don’t want to wait for your refund, take some of it now. If you believe you have a refund coming, adjust your W-4 to receive more take home pay and pay less tax for November and December.

7) Review Your Financial Statement: This is for the business owners out there. Check what your financial statement says for the year thus far. Are you going to be showing a large profit? If so, think about making purchases for supplies or equipment that you may need in the near future. Reduce the amount of tax you pay now by purchasing things you will need later.

As mentioned earlier, not all of these apply to every taxpayer. If you are curious to see if one of these strategies may help you, please consult with your tax adviser before making the move.

Winter is coming, make some tax moves.

Nicholas Hammernik, EA

414-545-1890

nhammernik@hammernikassoc.com

Hammernik and Associates helps individuals in Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa, West Allis, and Southeastern Wisconsin with tax preparation and tax planning. Hammernik and Associates helps small businesses in Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa, West Allis and Southeastern Wisconsin with accounting, payroll, business coaching, and QuickBooks.

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Helping Milwaukee Entrepreneurs

Fri, 14 Oct 2016 19:06:00 GMT

This past Tuesday night, I had the opportunity to help Milwaukee entrepreneurs compile their business plans. I occasionally volunteer my time with the Wisconsin Women’s Business Initiative Corporation. WWBIC is a great organization with this mission:

The students of WWBIC are put through classes which teach them all aspects of starting and maintaining a business plan. My duty is to review their business plans with them and inform them of important aspects of tax and accounting that they should know.

This past session, I met with an aspiring gym owner, in-home care specialist, beauty salon owner, record label owner, and clothing line designer. It is great to see individuals with a vision and goals to become their own boss and do what they love to do.

Here were the main questions that were asked by these entrepreneurs, and the topics I really tried to emphasize to them:

WWBIC really pushes their students to come up with a complete game plan to prepare for the world of being self employed. It is a tough task for an entrepreneur to handle all the aspects of owning a business. That is where Hammernik & Associates comes in to help. Our main focus when dealing with business owners is to relieve the stress of dealing with the financial aspects of their business. By giving a business owner peace of mind that their financial paperwork is being taken care of, it allows them to do what they do best…produce sales.

We work with businesses of all sizes and business owners with different needs. We have packages available for the business owner that wants all hands on deck, and also packages for the owner that just needs some occasional advice.

I encourage any aspiring entrepreneur to contact us so that we can get you off to the right start in reaching your goals. I also encourage any business owner that is stuck in neutral to contact us so that we can analyze how we can develop a strategy to get you back over the hump. If you need accounting help in Milwaukee, Waukesha, and everywhere in between, we have been helping business owners for 30+ years.

My Dad, Dale, has written a book which should be a hand book for every small business owner in Wisconsin. It covers all the aspects of running your own business and is a good resource whenever a question may arise. That book, Straight Talk About Small Business Success In Wisconsin, can be purchased on Amazon or contact our office if interested.

Any time you volunteer, you get that feeling that you are helping out someone that needs your help. The truth is, we get that feeling of satisfaction every time that we help our clients out. As I mentioned, our services focus on providing our clients the free time to work on their business, make money, spend time with family and enjoy life to the fullest. We help Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa with small business tax preparation, small business accounting and small business tax planning.

I have been with WWBIC for about 2 years now and will continue working with them. If you are interested in using your skills to volunteer for them OR if you are an aspiring entrepreneur that needs some help, visit them at http://www.wwbic.com .

Dream big, entrepreneurs, dream big.

Nicholas Hammernik, EA

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Fall Is Here…Who’s Buying A House?

Fri, 07 Oct 2016 18:48:00 GMT

Last week, I blogged about a new IRS scam out there. Since that time, there was a major development in combating the IRS scams. A call center in India was raided by police and 70 workers were arrested for involvement in IRS phone scams. Check out the Forbes article here : Dozens Arrested In IRS Phone Scam

Now, let us proceed with this week’s topic: Buying A House!

The leaves are falling, the temperature is dropping, and the weekends are full of football…fall is here. I’ve always thought, especially in Wisconsin, that fall is one of the best time to buy a house. Locally, you want to get everything moved in/out before there is snow and ice on the ground. In fact, I moved into my house almost 2 years to the date. I did some research, and fall is indeed the best time to buy a home. October is the best month, and October 8th is the best date. (h/t Business Insider) Perfect timing for this blog post!

With all that being said, there are tax factors involved with buying a house.

If you are a first time homeowner, welcome to the life of itemized deductions. If you are not new to being a homeowner, you are probably been in a relationship with itemized deductions for awhile. The interest that you pay for on your mortgage and the real estate taxes that you pay on your house are two main components of your itemized deductions.

Tax Strategy To Maximize Deductions

When you close on your house, there is a lot of paperwork involved(and signatures). The closing statement is a very important component of the sale. It shows all of the expenses involved with the sale. In most cases, it will designate the real estate taxes to the buyer and the seller based on the time of the sale. For instance, if the house is sold 10/1/16, 75% of the 2016 real estate taxes will be allocated as an expense to the seller, and 25% to the buyer. When you go to pay your real estate taxes, you will be paying the full 2016 amount. However, keep in mind that you have already been reimbursed for the months you did not live there on your closing statement.

Wait until January 2017 to pay the real estate taxes. This is very important to remember. Often times mortgage companies will automatically pay your current year real estate taxes on 12/31 of that year. This tax strategy will not be able to be implemented if this happens. We have already implemented this tax strategy with clients this year. If you or someone you know bought a house this year, please have them call one of our consultants so that we can help them save hundreds of dollars in taxes . This is just one tax planning strategy that we use to help Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa with tax preparation.

P.S. Now that you have a new home, make sure you’ll stay there for awhile. When I say awhile I mean 2 years…that is the amount of time you need to spend in a principal residence to have the sale of your home excluded from being taxed.

Enjoy this fall weather this weekend!

Nicholas Hammernik, EA

The post Fall Is Here…Who’s Buying A House? appeared first on Talking Tax to Milwaukee .

Surprise! Another IRS Scam…

Fri, 30 Sep 2016 19:45:00 GMT

Unfortunately, I feel like I have been alerting our clients of a new tax scam almost every month. Well, here I am again warning you of another IRS tax scam. In the past, we have informed you that the IRS will never call you, they will only contact you via “snail mail”. This was in response to the mass amount of fake phone calls that were being made threatening taxpayers.

It looks like they are now attacking taxpayers via e-mail. They are e-mailing out letters that look ever so similar to the actual letters the IRS sends out when they make changes to your tax returns. The main focus of the letter has to do with the Affordable Care Act, which is the health insurance tax involved with Obama Care. While the letters do look awfully similar to the real IRS letters, there are a few subtle differences. Check it out… Scam Letter

These fake notices are in the e-mail as an attachment. If you happen to receive a suspicious e-mail claiming to be from the IRS, DO NOT open the attachment and forward the e-mail to phishing@irs.gov and then delete the e-mail.

In today’s world, criminals will do anything to make a quick buck. They have been very successful in scaring taxpayers into giving them money. For some reason, the IRS and taxes tend to scare people. We are here to protect you from any fear that you may have and give you peace of mind that you are safe. The tactical creativity of the scammers keeps getting better, and I tend to think that sooner or later they will begin to use snail mail in some way.

It is important to remember that any time your receive correspondence, please bring it into our office. Not only will we be able to detect if it is legit or not, but we will also take care of corresponding with the IRS or State if it is a legit letter. Don’t forget to take advantage of our Tax Shield to protect yourself against having to deal with IRS or State letters. The Tax Shield will be a part of our tax packages that will be available this upcoming tax season.

If you have any questions in regards to this scam, or any other scam, please give us a call or e-mail.

Have a great weekend!

P.S. 2015 Tax Returns on extension are due in 2 weeks! Get your information in ASAP if you still need to file.

Nicholas Hammernik, EA

Milwaukee tax preparation, Waukesha tax preparation

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Back To School Tax Tips

Fri, 23 Sep 2016 16:15:00 GMT

School has been back in session for almost a month now. I’m sure all of the college students were glad to get some breathing room from their parents, and the parents of elementary school, middle school, and high school students were glad to get some breathing room from their kids!

Private School Tuition And School Uniforms

The cost of private school tuition is not deductible on your federal tax return. However, the State of Wisconsin does allow for a subtraction to income as of 2014. The subtraction is limited to $4,000/child for grades K-8 and $10,000/child for grades 9-12. Unfortunately, even if school uniforms are required, the cost is not deductible.

Before/After School Care

For children under age 13, the cost of before or after school care may qualify for a tax credit. These costs would be treated in the same manner as day care expenses and would be categorized under the Child Care Credit.

College Tuition Credits/Deductions

There are three separate tax breaks for paying college tuition. The American Opportunity Credit is available for the first 4 years of post-secondary education at a qualified institution. The Lifetime Learning Credit can be used for tuition after the first 4 years of education, there is no limit on the amount of years this can be taken. The Tuition And Fees Deduction is an alternative to the Lifetime Learning Credit, and can be taken if it provides a better outcome than the credits. It is important to keep in mind that scholarships and grants reduce the tuition paid, and if the amount of scholarships and grants exceeds tuition, it is to be claimed as income. Qualified expenses may include required books and supplies for classes, but it does not include room and board.

Student Loan Interest

Once you make it through the college gauntlet, you have the daunting task of paying off your student loans. The amount of interest that is deductible is up to $2,500, however, this amount may phase out based on income level.

529 Plans

One way to help pay for college is to start a 529 Plan early. This is a mutual fund account that grows like an IRA. However, the earnings on this account are tax-free as long as the money is used in the future for eligible college expenses.

What About The Educators?

If you are a teacher, you are eligible to deduct up to $250 of expenses for classroom supplies. Any out of pocket expenses that you accrue, make sure to keep those receipts for tax time. As of 2015, the State Of Wisconsin also adopted this deduction for State tax return purposes.

As I mentioned before, education is not cheap. It is important to be aware of possible tax benefits from all of the money that you spend on your children’s education. Hopefully this list provides some clarity for all the parents out there, and as always if you have any questions, please give us a call! These deductions are just part of how we help people in Milwaukee, Waukesha, New Berlin, Brookfield, Wauwatosa with tax preparation.

Here’s to a successful school year for all of the students out there, and some relaxation for the parents!

Until next time,

Nicholas Hammernik, EA

The post Back To School Tax Tips appeared first on Talking Tax to Milwaukee .

Nelly’s IRS ‘Dilemma’

Fri, 16 Sep 2016 19:56:00 GMT

The financial mishaps of wealthy celebrities always intrigues me. How can someone with millions of dollars end up in debt? This is exactly what happened to the famed rapper Nelly. I myself am a big Nelly fan and grew up listening to a lot of his hit songs. If you are reading this and have no clue who this Nelly character is, ask your child or grandchild and they can fill you in. I actually recently attended a Nelly concert at Summerfest, and while it was obvious his talent was diminishing, I had no clue his bankroll was also on the down slide.

The IRS ‘Grillz’ Nelly With A $2.40 Million Tax Lien

Yes, you read that right, he owes the IRS a whopping $2.40 million. I would be willing to bet that he had no idea he was behind in tax payments. Many times celebrities entrust their financial people to handle all financial matters for them and to make sure everything is paid for. Well, Nelly’s tax guy wasn’t keeping up with those estimated tax payments. The tax lien that the IRS imposed means that they are going to start taking his assets if he does not settle this debt. The IRS can impose a tax lien when they have tried to collect past due taxes, but have not received any response.

What To Do If You Receive A Tax Lien

Tax liens don’t only happen to celebrities that owe millions of dollars, it happens to many taxpayers across the country that owe amounts generally above $10,000. I’m sure you have heard radio or TV commercials from the national companies claiming they can settle IRS tax debt for pennies on the dollar. In most cases, this is a lie, and just a ploy for you to give their 1-800 number a call. Many of these companies have been reported for taking clients’ money and not completing the work they said they would do for them. We work with our clients throughout the whole process and provide an in-person meeting so that they know who they are working with the entire time. As Enrolled Agents, we are able to talk to the IRS on behalf of our clients and try to reach a settlement. To find out some ways that we help people out with tax debt, visit that section of our website http://hammernikassoc.com/irs-representation/tax-resolution/ .

So, What’s Next For Nelly?

Nelly fans across the world are trying to help their beloved rapper out by streaming his songs. Spotify reported that in the last week, his songs are up 200%. However, there will need to be a lot of songs streamed to make up that amount of debt. Songs will need to be streamed between 4-5 million times to accrue the $2.4 million, and that does not even account for the share allotted to his record label, producers, etc.

Regardless, Nelly better hire a good tax professional to represent him in negotiation with the IRS, or they are about to make it hot in herre for him.

If you, or somebody you know, needs help with IRS debt, please contact our office at 414-545-1890 . We help people in Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa with tax debt and liens.

The first step in getting back to solid tax standing is to stop the bleeding. We are here for you to set up a game plan to get rid of that tax debt once and for all.

Have a great weekend!

Nicholas Hammernik, EA

The post Nelly’s IRS ‘Dilemma’ appeared first on Talking Tax to Milwaukee .

Your Online Shopping Habit Might Get More Expensive

Fri, 09 Sep 2016 18:07:00 GMT

Does anybody actually go to the mall anymore? I can personally count on one hand the number of times I have been inside a mall in the last year. Many millennials, like myself, would much rather do our shopping in the comfort of our own homes. It isn’t only millennials, websites like Amazon.com and Ebay.com have seen their activity soar over the last decade. Online shopping is the new way to shop for many reasons. One of those reasons, that you may not even be aware of, is that in most cases you do not pay for sales tax on your purchases. Thus, online shopping is not only convenient, but it is also cheaper!

Well, Congress is well aware of this and the money that they are missing out on. The Census Bureau of the Department of Commerce estimated that in the 2nd quarter of 2016, there were e-commerce sales of $97.3 billion. For local purposes, let’s assume that this was all in the State of Wisconsin. At the general sales tax rate of 5%, this equates to $4.865 billion in uncollected sales tax.

Online retailers are not required to charge sales tax if they do not have a physical location that they sell from. Therefore, the sales are charged with what is called a use tax. The use tax puts the burden on the consumer to report the sales tax on their state tax return. If you ever wonder why your tax consultant may ask if you made any internet purchases for the year, this is why. Although consumers are supposed to report their internet purchases on their tax return, many do not.

Congress wants their money!

There have been attempts in the past by Congress to impose sales tax laws against the e-commerce businesses. Those efforts have failed, but they are not giving up. Judiciary Committee Chair Bob Goodlatte has taken it upon himself to take another swing at it. The big boys like Ebay and Amazon are keeping a close eye on his proposals as it would drastically effect their businesses.

His proposal states: “A state may impose a sales, use or similar tax on a seller, or impose on a seller an obligation to collect such a tax imposed on a purchaser, with respect to remote sale of a product or service only if — (1) The State is the origin State for the remote sales (where the company had the most employees during the previous calendar year); (2) The tax is applied using the origin State’s tax base applicable to non-remote sales; and (3) The State participates in the State tax clearinghouse.”

The online shopping world is great for consumers, and it is a retail giant that is only going to continue to grow. So keep on clicking those purchases from your computer, but be aware that your checkout bag price may be a tad higher in the future.

Until next time,

Nicholas Hammernik, EA

Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa tax preparation

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Tax Refunds To Be Delayed

Fri, 02 Sep 2016 20:01:00 GMT

Are you ready for the big news? Your tax return next year is going to be delayed. If you were planning on getting that refund quickly to pay for something…time to change your plans. The IRS has put in place a new law which requires them to hold refunds longer. The IRS is warning taxpayers that their refunds are going to be delayed several weeks more than the normal time. In the past, it usually took the IRS 2-3 weeks to process refunds. Therefore, this new law means that it is going to take at least a good month for you to receive your refund check.

What has caused this law to go into place?

What to do if you do not want to wait for your refund…

Take your refund now…What do I mean by this? Use the remaining 4 months of the year to take larger paychecks instead of your refund. You can do this by adjusting your W-4 to lower your tax withholding. Hammernik & Associates specialized in W-4 tax planning and can help you avoid waiting for your refund later. There is a large population that loves getting that huge refund check every tax season, but how long is too long to wait for it?

We can help residents of Milwaukee, Waukesha, New Berlin, Brookfield, Wauwatosa with all of their tax preparation and tax planning needs.

Give Hammernik & Associates a call to avoid waiting for your refund next year and receiving more of that money now. After all, the Government is just taking longer to pay you back on that interest free loan you are giving them.

If you have any questions about this new law or if you want to take tax planning action, call 414-545-1890.

Until next time,

Nicholas Hammernik, EA

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Twitter Tax Search

Thu, 18 Aug 2016 18:15:00 GMT

I was struggling to decide a topic to blog about this week, so I took to Twitter to help me out. After all, Twitter is the best way to see what everyone is currently talking about in the world. You can follow us on Twitter at @HammernikTax. I did a simple search for the word “tax” on Twitter. Here are the main topics currently being discussed involving the word tax.

Donald Trump’s Tax Return

This is not a political blog, so I will not be discussing politics, however, this is relevant to our industry. The main topic of discussion revolves around Donald Trump not yet releasing his tax return. It seems like everywhere you go, your tax return is wanted to evaluate your current financial situation. Examples of this include: buying a car, buying a house…and running for president.

However, a tax return may not always tell the whole story. Our job as tax consultants is to devise strategic plans for our clients to reduce the amount of income they are showing on their tax returns. For instance, we may suggest a client defers more money to their 401K to reduce their taxable income. The tax return will now show that they are making less money, when in reality, they are making the same amount but are “hiding” some of it. So while it seems that we are often judged on the numbers on our tax returns, the tax return is just a sneak peek into the whole story. On that note, you have a little over 3 months left to do your own tax planning to create your own story. That is where the strategic plans on our part come into play. If you think you need to move some things around before the year is over, contact our office ASAP.

Are Contributions To Political Campaigns Tax Deductible?

(Don’t mind the Cubs Profile Picture)

What do you know, Twitter is all about politics right now. The simple answer to this…NO. While you are free to donate your money to a political movement that you believe in, it will not benefit you on your tax return. In order to be tax deductible, contributions must be made to a qualified charitable organization. If you are unsure if the organization qualifies, ask them, or use this IRS Tool .

Federal Student Tax Scam

The Internal Revenue Service issued a warning to taxpayers about bogus phone calls from IRS impersonators demanding payment for a non-existent tax, the “Federal Student Tax.”

Even though the tax deadline has come and gone, scammers continue to use varied strategies to trick people, in this case students. In this newest twist, they try to convince people to wire money immediately to the scammer. If the victim does not fall quickly enough for this fake “federal student tax”, the scammer threatens to report the student to the police.

“These scams and schemes continue to evolve nationwide, and now they’re trying to trick students,” said IRS Commissioner John Koskinen. “Taxpayers should remain vigilant and not fall prey to these aggressive calls demanding immediate payment of a tax supposedly owed.”

This is just another tactic being used by scammers. We have probably all heard of or received of these phone calls, this is just a different target towards college students. REMEMBER: The IRS will never call or e-mail you.

Complaints About Olympic Athletes Taxed On Medals

As I mentioned in an earlier post, Olympic athletes are taxed on both their winnings AND the value of the medal that they receive. There is much banter on Twitter from people complaining that the IRS needs to change this rule. However, it is important to remember that the IRS does not make the tax law….Congress does!

Twitter is the first place I go to for updated news. It has become the first source that reporters go to…it is instant news. I enjoyed seeing what people were talking about regarding the word “tax”, I think I may have to do this more often!

Until next time,

Nicholas Hammernik, EA

The post Twitter Tax Search appeared first on Talking Tax to Milwaukee .

Is Your Activity A Business or A Hobby?

Fri, 12 Aug 2016 20:47:00 GMT

Earlier in the week, our Facebook account posted a really interesting article from Forbes about the Olympics and taxation. You can view that article here: Facebook Article . By the way, if you are not already following us on Facebook, please give us a “like”!

The article references how Olympic athletes are taxed and how it depends on if they treat their participation as a business or as a hobby. The IRS has strict rules to distinguish what is a hobby and what is a business. They regularly monitor Schedule C’s that are submitted to verify that they are indeed a business activity.

So, What Does The IRS Consider A Hobby Vs. A Business?

Per the IRS tax code, here are some things to consider when determining if you are participating in a business or a hobby:

As a rule of thumb, the IRS considers an activity is being carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.

What Is The Difference In Taxation Between A Business And A Hobby?

If you determine that your activity is a business, then you will report all of your income and expenses involved on the Schedule C. On the other hand, if your activity is considered a hobby, you will report your income as “Other Income” and your expenses will only be deductible along with your other itemized deductions on the Schedule A.

Business vs. Hobby is a section of the tax code that the IRS audits frequently, and for good reason. Incorrect deductions of hobby expenses account for a portion of the overstated adjustments, deductions, exemptions and credits that add up to $30 billion per year in unpaid taxes, according to IRS estimates.

We help business owners in Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa with business tax return preparation and tax planning.

If you are currently doing any side projects, or are considering starting one up, please contact your tax guy at Hammernik & Associates to determine if it is a business or a hobby. Your tax planning strategy may depend on it!

Until next time,

Nicholas Hammernik, EA

The post Is Your Activity A Business or A Hobby? appeared first on Talking Tax to Milwaukee .

Etsy Tax

Fri, 05 Aug 2016 21:12:00 GMT

This is the final installment in my analysis of the rapidly growing shared economy. So far, we have outlined the popular transportation and home rental segments, which can be viewed here:

Air BnB – How Is It Taxed?

Tax Planning Of You Drive Uber or Lyft

Today, we will analyze the taxation for those who sell their talent online.

How is Etsy.com Taxed?

Etsy tax? No, this is not a new tax the government has decided to implement. This has to deal with the taxation of those who sell on the popular website Etsy.com. Etsy is an online marketplace for the general public to buy and sell handcrafted items. Sellers on Etsy range from the casual crafter that wants to make some money off of their hobby, to the businesses that use Etsy as a supplement marketplace to their own website or storefront.

The main cogs of Etsy include jewelry, clothing, and accessories, most of which are handcrafted by the sellers. The sellers will receive a 1099 for their total amount of sales for the year. We help people in Milwaukee and Waukesha counties that sell on Etsy with tax preparation and tax planning.

What kind of expenses can you deduct?

The main expenses involved with selling on Etsy are the Cost of Goods Sold. The Cost of Goods Sold are going to be the materials purchased which are needed to produce the product. Also, equipment needed to produce your product can be deducted as well. Sewing machines, computer software, and other large machinery would be considered equipment.

Another expense to take into account is the Home Office Deduction. If you have a designated room in your home that is used exclusively for running your Etsy business, then you can deduct this as an expense. There are two ways you can do this. The first option is the Simplified Method, which gives you a $5 deduction per square foot of the room. The other option is the traditional method. With the traditional method, you compute the percentage of square feet the office is in comparison to the entire home. This percentage is used to deduct a portion of you real estate taxes, mortgage interest and utility bills.

Mileage: Any miles driven to gather supplies and materials can be deducted using the standard IRS mileage rate.

What about Fiverr? … What is Fiverr?

Fiverr.com is a website that can help consumers pretty much with anything. It is a gold mine for business owners, and we have personally used services on Fiverr a few times. Services include: graphic design, writing, video editing, music & audio, programming. and advertising. The sellers on Fiverr utilize their talent in these categories to produce a product based on the buyer’s order. It is a pretty cool concept, and I suggest you check it out if you ever need help with anything you don’t want to waste your own time on.

The taxation of Fiver sellers is similar to those on Etsy. However, they may not incur as many direct expenses. Their main expenses are going to comprise of equipment and the home office. In most cases, there are not many supplies or materials needed because they are using their expertise to produce a final product.

Both Etsy and Fiverr members may incur processing fees from the website. These fees are also deductible as expenses.

What have we learned about the Shared Economy?

The shared economy is a highly successful business model that is being carried over into many different sectors and industries. The main concept is that the Business lets us, the general population, do their work for them. They benefit off of the processing fees and advertising space, but rely on the citizens of the world to produce for their business.

The important thing to remember for all of those that are “working” for these companies is that you are not their employee, you are your own business! It may be your full time gig, or just something you do to supplement your income, but you are a business owner. You are no longer treated by the IRS as an employee and you will be taxed differently. It is important for you to know how to keep records of your business and stay compliant with the IRS tax code.

If you are currently involved in the shared economy, or if you want to make some extra money and join the shared economy, please contact your tax consultant to learn more of what you need to do.

Have a great weekend!

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

The post Etsy Tax appeared first on Talking Tax to Milwaukee .

Air BnB – How is it taxed?

Fri, 29 Jul 2016 16:27:00 GMT

In my last post, I talked about the tax ramifications of the rapidly booming shared economy phenom, Uber. The IRS has taken notice and is beginning to crack down on those involved with making money from the shared economy. Today, we will move to the vacation rental sector of the shared economy. The biggest player here is Air BnB, followed by other services such as VRBO, Home Away, and FlipKey. So how does it work? Let’s say you want to take a trip to Florida for a week of vacation…If you either feel that hotels are too expensive, or you don’t like the overall feel of hotels, you would opt for the shared economy option. Hosts list their homes or apartments on the website with the price per day, location, # of rooms and pictures. If you think it looks like a place you would like to stay, you pay them via the website and receive instructions from there.

So, if you are a host receiving money for visitors to stay at your house…how are you taxed?

Like Uber drivers, many times Air BnB hosts do not realize that they may have become a business owner overnight. It is important to educate yourself on how you will now be treated under the tax code. I was able to save my friend a couple hundred dollars in taxes by making him aware of the 14 day rule. If you currently rent out your place through the shared economy, or are considering doing so for a big upcoming event, please consult with a tax professional to keep yourself educated and compliant. We can help with the tax preparation and tax planning of taxpayers involved in the shared economy.

The Milwaukee and Waukesha County areas are in high demand during events such as Summerfest, State Fair, and various sporting events. It is a good opportunity to put some extra cash in your pocket, but be aware of how it could affect you at tax time. Plan now before it is too late! Hammernik and Associates specializes in helping Milwaukee, Waukesha, Brookfield, New Berlin, Wauwatosa with Air BnB tax preparation and tax planning.

Next week, the final segment of the shared economy industry will focus on the online retail sector.

Until then,

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

The post Air BnB – How is it taxed? appeared first on Talking Tax to Milwaukee .

Tax Planning If You Drive Uber Or Lyft

Fri, 22 Jul 2016 19:15:00 GMT

The IRS will begin to take a closer look at examining the rapidly growing “sharing economy”. The sharing economy are activities which people get paid for through an online platform. The most popular companies of the sharing economy include Uber, Lyft, Air BnB, Etsy, Fiverr and TaskRabbit. Over the next few weeks I will be focusing on these different activities to raise public awareness regarding the tax consequences involved with the sharing economy.

To begin, I will focus on the transportation sector of the shared economy. This is by far the most booming sector. In fact, it has surpassed taxis/cabs in corporate spending reports. There are two main players in the transportation shared economy game, Uber and Lyft. I personally use Uber almost every weekend and any time I am on vacation. It is easy to use, convenient and cost effective. It is focused on providing the millennial market an easy way to get from point A to point B. Uber and Lyft’s business plans are centered around having “employees” (the drivers) work for them using their personal automobiles. However, in reality, the drivers are not employees of said companies, they are sole proprietors.

What does this mean if you are a driver for Uber or Lyft?

The answer….Congratulations you now own your own business! We help Milwaukee and Waukesha Uber and Lyft drivers with tax preparation and tax planning.

The reason why the IRS is trying to raise public awareness among the shared economy community is because that these drivers don’t realize that they are their own business and not employees. This can result in major tax problems when it comes time to file your tax return. When it comes to tax preparation, there are some important things you need to know when you own your own business.

Here are five things that all Uber and Lyft drivers should be aware of:

The IRS knows that the shared economy is here to stay and is growing every year. They will begin putting more focus on patrolling the tax returns of taxpayers that participate in these activities. Hammernik & Associates is here to make sure that you stay complaint, tax plan to save money, and know what you can and cannot deduct. Also, as a business owner, you now have additional tax savings opportunities available to you. If you are an Uber or Lyft driver or if you frequently use the service, let it be known that Hammernik & Associates knows how to deal with the tax implications involved with being an Uber or Lyft driver.

Hammernik & Associates helps business owners and individual taxpayers save on taxes by proactive planning.

The next blog post will discuss the home rental sector of the shared economy. Stay tuned.

Have a great weekend,

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

The post Tax Planning If You Drive Uber Or Lyft appeared first on Talking Tax to Milwaukee .

Make a Difference Today…

Fri, 15 Jul 2016 19:52:00 GMT

The last few months have been a rough time for the state of humanity. I will not get into any political views or issues regarding events that have taken place. However, it does shine a light on how valuable your life is.

A main pillar of Hammernik & Associates is helping the community. Our charity of choice over the years has been the Muscular Dystrophy. We collect donations throughout the year by selling shamrocks and we also donate $1 for every tax return that we prepare. MDA has created a campaign that makes it so easy for you to help find a cure. All you have to do is upload a picture of yourself and $5 will be donated to the MDA. Here is the picture that I uploaded.

Want to upload your own picture and donate $5? Click Here

This is an easy way to make a difference, it will only take a couple minuted of your day.

Take advantage of this simple way to make a difference in someone’s life. You have the ability to help send some kids to summer camp and put a smile on their faces. That is a great feeling!

Thanks in advance,

Nick Hammernik, EA

The post Make a Difference Today… appeared first on Talking Tax to Milwaukee .

Don’t Tell Bobby Bonilla Pensions Are Dead

Fri, 01 Jul 2016 17:43:00 GMT

Today, July 1st, is unofficially named “Bobby Bonilla Day”.

Today is the day that Bobby Bonilla gets his annual check for $1,193,248.20 from the New York Mets baseball team, just as he will every single year through 2035.

To catch everyone up:

In buying out Bonilla before 2000, the Mets triggered a deferral that paid Bonilla the above figure annually from 2010-2035.

Call it one of the more fun pensions you’ll ever see.

Pensions are a close to extinct financial animal, but if you can find an employer that offers one, you should jump on the opportunity.

What is a ‘Pension Plan’

A pension plan is a type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee’s future benefit. The pool of funds is then invested on the employee’s behalf, allowing the employee to receive benefits upon retirement.

Why are Pensions dead?

Retirement has taken a back seat to corporate profitability for more than 40 years as the United States has embraced the reduction of pensions, and now the U.S. economy is paying the price with lowered productivity.

Without pensions, older workers are being forced to work longer hours and stay in the workforce longer, and that means they’re squeezing out some of the most productive workers of all, known as core workers (ages 25-54).

Employers have now opted for retirement plans such as 401K’s, 403(b)’s and Simple IRA. In these plans, employers still contribute to their employee’s retirement, it is just not as much as they would contribute to a pension.

Salary Deferral

“Bobby Bonilla Day” is a joke that is discussed every July 1st on sports talk shows and all over the Internet. It is looked at as a joke because the Mets are still paying a guy on their payroll over $1 million a year…and he hasn’t played a game in 16 years.

My question is, why don’t more athletes defer salary. There are a few other notable players such as Ken Griffey, Jr that are also being paid after their playing days. Griffey is actually even receiving 4% interest on his money…what a great retirement plan.

A Sports Illustrated story ran last year and stated this:

“Reports from a host of sources (athletes, players’ associations, agents and financial advisers) indicate that: By the time they have been retired for two years, 78 percent of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.”

In an industry that sees former athletes trying to scrape together autograph signings and speaking engagements just to make a living after retirement, I ask this: Why not make salary deferral a priority for agents during negotiating contracts?

A glorified pension in an age where pensions are dead.

Figure out a way that you can support the lifestyle you want to live after you are done receiving a paycheck. This may no longer be through a pensions, but there are other ways to secure financial independence during retirement.

If you do not have a retirement game plan in place, or you think it can be improved, contact our office at 414-545-1890. Our Wealth Management division will review your current financial game plan and come up with a strategy to make your future retirement a success.

Have a safe and happy 4th of July weekend!

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

The post Don’t Tell Bobby Bonilla Pensions Are Dead appeared first on Talking Tax to Milwaukee .

How State Tax Impacts Salary

Fri, 24 Jun 2016 16:38:00 GMT

The NBA draft went down last night, and some of these kid’s lives are forever changed. The amount of money they will make on their first contract is more than most Americans will make in their lifetime. While I am a huge sports fan and enjoy the draft for what it is, I also like to look at the tax implications involved. When you dissect everything, it is eye opening to see how State tax rates can have a larger effect on the amount of money that they make than the slot that they are drafted.

Let’s take a deeper look into the draft so I can show you what I am talking about. I am a Marquette basketball fan, so we will begin with analyzing the local kid, Henry Ellenson.

Henry was picked with the 18th overall pick by the Detroit Pistons. Michigan has a top state tax rate of 4.25%. A native of Rice Lake, WI, Henry escapes the WI top tax rate of 7.65 to the friendlier Michigan rate. However, let us take a look at the financial impact of Henry being drafted at #18 instead of one pick earlier at #17.

Above are the projected guaranteed 2 year contracts that each slot in the draft will receive. The difference between being selected #17 and #18 is only $183,240…which isn’t monumental when you are talking about millions of dollars. However, Memphis is in the state of Tennessee, which is NO STATE TAX. Taking the 4.25% Michigan state tax off of Henry’s contract with the Pistons results in a total tax of $148,109. So that difference of $183,240 suddenly becomes a difference in salary of $331,349.

Now, let’s take a look at how getting drafted 5 picks later actually benefited one of the draftees from a financial standpoint. We will focus on the 25th pick by the LA Clippers and the 29th pick of the San Antonio Spurs. The Clippers took Brice Johnson from the University of North Carolina and he is projected to make $2,605,080 in guaranteed salary. The Spurs took Dejounte Murray from the University of Washington with the 29th pick and he is projected to make $2,413,320 in guaranteed salary.

The simple math here tells us the Johnson will make $191,760 more than Murray. However, San Antonio is in Texas which also has NO STATE TAX. Whereas, Brice Johnson will become a California resident which has the highest state tax in America with a top rate of 13.3%. This state tax will result in a cut off Johnson’s salary of $346,475, thus, Dejounte Murray will actually make $154,715 more than Johnson as he resides in the state of Texas.

It is important to remember that all athletes are subject to the “jock tax”. This means that they are taxed by each state for the number of days that they are working (playing) in each individual state. Therefore, none of the athletes are completely free from paying state taxes. However, the majority of their income is taxed in their state of residency.

All in all, the major hype around drafts is usually about how high an individual is drafted, but there is more to the financial story when you dig deeper into the numbers. All of these athletes have reached their childhood goal and are now in position to be financially secure for life if they manage their money in the proper way. Unfortunately, a large percentage of athletes eventually go broke due to mismanagement or bad advice with their finances. I just find it fascinating how the state tax rates can have a large effect on total take home pay for each individual.

If you are a sports fan or not, I hope that you enjoyed digging into the impact of state tax. There is a reason that many retirees move to Florida, and it is not just because of the great weather!

*All figures are based on NBA slotted projections. Calculations do not take into account federal taxes and other income and deductions that these individuals may have.

Our summer newsletter is now out, check it out! Summer 2016 Newsletter

P.S. Inside the newsletter you will find out about our contest that we are running through 7/1/16. Let us know what you think about Hammernik & Associates. Post a review on Google or Yelp and be entered into our contest to win a $100 VISA gift card. Your opinion matters to us, don’t keep us a secret!

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

The post How State Tax Impacts Salary appeared first on Talking Tax to Milwaukee .

What To Do When You Receive An IRS Phone Call

Fri, 17 Jun 2016 22:57:00 GMT

One of the most common phone calls that we get at our office is clients calling to say that the IRS called them and told them that they need to pay them immediately. These are IRS scam phone calls that have been going on for almost two years. Want to know what to do if you receive one of these call or an email from the IRS?

Watch Nick Hammernik and Lori Beck tell you what to do:

What To Do If The IRS Calls You

If you have any questions or concerns about identity theft our financial scams, please call our office at 414-545-1890

The post What To Do When You Receive An IRS Phone Call appeared first on Talking Tax to Milwaukee .

How To Avoid IRS Interest

Thu, 09 Jun 2016 19:53:00 GMT

The IRS has decided they want more of your money! As of the second quarter of 2016, they have raised their interest rate from 3% to 4%.

Do you want to know how to avoid paying the IRS that interest? We help Milwaukee and Waukesha with tax issues.

Watch This Video

Blog Special: Schedule a tax planning session with your Hammernik & Associates adviser by 6/17/16 for only $59. Our normal tax planning rate is $175/hr, so don’t miss out!

If you need a Tax Cleanse with some IRS debt, schedule a complimentary consultation to see how we can help you out.

We will be trying to do video blogs every other week. Please let us know if there is a certain topic you would like to see discussed!

Until next time,

Nicholas Hammernik, EA

The post How To Avoid IRS Interest appeared first on Talking Tax to Milwaukee .

Sweet Tooth Taxes

Fri, 03 Jun 2016 14:42:00 GMT

The post Sweet Tooth Taxes appeared first on Talking Tax to Milwaukee .

Tax Breaks For The Troops

Fri, 27 May 2016 15:03:00 GMT

As Memorial Day weekend approaches, it is time to pay our respects to those that lost their lived serving for our country. However, it is also a good time to celebrate those that have served, or are currently serving our country.

I have massive respect for our service members. I have a few friends and a few clients that have served our country. I’m not sure I could physically or mentally do what they do/did. However, I can help them with some tax advice….

Talking Tax to Milwaukee’s Military:

For Business Owners: Milwaukee business owners have the opportunity to employ veterans and get a credit for it. Not only are you helping out a veteran, but you are also helping your business.

For Military Spouses: Military spouses are strong individuals. They are responsible for taking care of a lot different things. Moving around from different bases is very common, and the IRS recognizes this.

For Veterans or Surviving Spouses: This credit is specific to the State of Wisconsin.

Veterans and Surviving Spouses property tax credit?

The veterans and surviving spouses property tax credit is a credit equal to the amount of property taxes paid during the year on an eligible veteran’s or surviving spouse’s principal dwelling. The credit is claimed on the Wisconsin income tax return. Before claiming the credit, the veteran or surviving spouse must obtain verification of his or her eligibility for the credit from the Wisconsin Department of Veterans Affairs (WDVA). A copy of this verification must be attached to the Wisconsin income tax return for the first year that the credit is claimed.

These are just a few of the tax breaks that I have come across while serving some of my clients. There are also a variety of other tax deductions, credits, and breaks that are available to current or former military members. If you know of someone that may be able to take advantage of these deductions, please have them contact our office. We help Milwaukee, Waukesha, New Berlin, Brookfield, Wauwatosa with all tax preparation needs.

While you are out enjoying this weekend with friends and family, remember the reason you are able to enjoy the (hopefully) beautiful Milwaukee weather… The Troops!

Happy Memorial Day!

Nicholas Hammernik, EA

The post Tax Breaks For The Troops appeared first on Talking Tax to Milwaukee .

Milwaukee Bucks Players’ Identity Stolen

Fri, 20 May 2016 14:36:00 GMT

Yesterday, news broke that a Milwaukee Bucks employee released the W-2 information for the players of the Bucks to a phony e-mail address. This means that someone has access to the identity of multi-millionaires such as Jabari Parker and Giannis Antetokounmpo. Having the basketball stolen from them is nothing new, but their identity is unexpected.

Scary, right?

Well, this is nothing new. Identity theft has been the hot button in the tax industry over the past 2 years. Last year, the IRS came out with a statement that their transcript website was hacked and there was the possibility that millions of taxpayers may have been affected. I personally was one of the taxpayers who received a letter notifying me of this. Last year, Katrina Cravy at Fox 6 featured my Dad in a story about ID theft.

Identity theft comes in many different forms. However, from the tax viewpoint there are two main forms. The IRS scam phone calls ( REMEMBER: THE IRS WILL NEVER CALL YOU) and the filing of tax returns under someone else’s social security number. Having access to someone’s social security opens up a lot of possibilities for a thief.

Getting back to the Bucks’ situation, this shows how easy it is for thieves to access important information. An organization such as the Bucks should have top notch security to avoid situations like this. As I mentioned before, it is scary to see it happen to such a large organization.

After hearing horror stories in the past, and stories like this, it is a good time to point out to our clients how we have taken steps to make sure this does not happen to them.

Nowadays, e-mails can easily be intercepted and hacked. That is why Hammernik & Associates has implemented a client portal system. All sensitive client information will be sent through this secure portal. This process ensures that situations like the Bucks’ will not happen at Hammernik & Associates.

However, this story is a reminder to make sure you always take steps to protect your identity. If you do believe your identity has been compromised, be sure to contact our office so that we can help you fill out an Identity Theft Affidavit.

Read the entire Bucks article here: Sources: Bucks players’ financial data compromised in scam

Until Next Time,

Nicholas Hammernik, EA

Milwaukee tax preparation and tax planning

The post Milwaukee Bucks Players’ Identity Stolen appeared first on Talking Tax to Milwaukee .

Why You Should Always Be Tax Planning

Fri, 13 May 2016 17:46:00 GMT

This past weekend I took a trip down to Louisville, KY to experience something that I always have wanted to see…the Kentucky Derby. The stereotypes of the Kentucky Derby are mint julips, big hats, and bright colored clothing….and they are all true. I opted to go with a baby blue colored coat and some coral colored dress pants. Leading up to the trip, I tried to learn as much about horse racing as I could. Now, I am a huge sports fan, but horse racing is not my forte’. Therefore, I opted to place my trust in the “experts” for their opinions on which horse would win.

I ended up placing my money on Gun Runner, who led most of the race, but faded to third place in the end. The winner of the race was the favorite, Nyquist. I did not end up cashing in any winning tickets and a few of my friends only won a couple hundred dollars.

However, let’s go ahead with the scenario that I dreamt up in my head…

“Oh my gosh, I just won $10,000 on this Trifecta bet! What am I going to do with all of this money?!?”

Step #1 : Enjoy the night in Louisville as a high roller.

Step #2: Call Hammernik & Associates to see how this effects my tax situation.

Now, I know in reality that calling up your tax guy is not in the forefront of your mind on a daily basis. However, when any life changing event takes place, or is about to take place, I cannot stress how important it is to give us a call to set up a tax planning meeting.

It is a guarantee that every year we will come across tax returns that could have benefited significantly from some quick tax planning. Don’t let this happen to you this year. If you are getting married, divorced, having a child, switching jobs, getting a raise, taking money out of a retirement account, won a bunch of money, etc. these are all reasons to do some tax planning.

We all make sure to brush our teeth as best as we can the night leading up to our dentist appointment, right? Does that really do anything? No, we are still going to get called out for not brushing enough either way. It’s too late…

The same holds true with your tax return. If you wait to address something that can affect your tax return, it is going to be too late to help.

Brush your teeth throughout the whole year!

So now that I covered everything from horse racing to dental appointments, give us a call to set up your tax planning check-up….before it is too late!

P.S. Kentucky does not have any state tax, so all my dream would have had to worry about would be how much federal and WI taxes to pay.

Until next time,

Nicholas Hammernik, EA

The post Why You Should Always Be Tax Planning appeared first on Talking Tax to Milwaukee .

Did Prince Die Without A Will?

Mon, 02 May 2016 19:38:00 GMT

I was browsing through my Twitter feed the other day and came across a tweet from one of my favorite follows, @taxgirl, that was instant click bait. @taxgirl, better known as Kelly Phillips Erb, provides a unique take on the world of tax and how it relates to pop culture. Here is the link to her article, Sister Says Prince Died Without A Will: What It Means And Why You Shouldn’t Let It Happen To You . It would be shocking to think that someone with so much worth would not have a plan in place to pass that worth on.

This article brings up some great points that Dave Biskup touched on in our December 2015 newsletter. Now, we don’t all have the assets that Prince had, but it is important to have a direction for what assets that we do have. Just this week we have been notified that two of our clients have passed away. Death is a subject, especially for me, that is very hard to think about or talk about it. The mindset is to block out any thoughts of death that may circulate in our heads while lying in bed at night. However, death is inevitable. Not having a will is almost a selfish act when you think about it. The time, money and stress it could cause your loved ones is simply not worth not having a plan in place. A couple hundred dollars can save your loved ones from having to deal with any repercussions.

Save your loved ones the time and stress involved by having a plan in place.

Our goal at Hammernik & Associates is to provide you with more than just a filled out tax return. We want to make sure that you are set up in the best financial situation in the present and in the future.

We have outlined a “Love Letter To My Family” which outlines steps to make sure everything is properly taken care of with your estate.

Love Letter To My Family

As always, if you have any questions regarding this topic, feel free to contact our office!

Until next time,

Nicholas Hammernik, EA

Milwaukee, Waukesha, Brookfield, Wauwatosa tax preparation

The post Did Prince Die Without A Will? appeared first on Talking Tax to Milwaukee .

Hammernik Weighs In On Whether To Lower Your Prices

Wed, 30 Sep 2015 08:57:00 GMT

We’ve been sitting down with some of our business owner clients for end-of-quarter planning and evaluation (as well as to get everything in before 9/15). Always enlightening for us here.

And what some of them are telling me is that they have been feeling a rising pressure from their employees, competitors and (less often, ironically) from their clients, to lower prices.

I have been known to weigh in on this topic. And I will do so again…

Hammernik Weighs In On Whether To Lower Your Prices
“You get the best out of others when you give the best of yourself.” – Harry Firestone

I discuss this all the time with my business owner clients — how to price their services. You see, often we might hear consumers say, “Well I would buy it if it were in my price range.” And, that idea tempts many business owners or sales people to lower their prices — just to sell more products.

This can be an extremely powerful urge.

However, as you already know, price reductions often create more problems than they solve. I’ve seen too many businesses (my clients) jump down to lower prices without consulting someone objective , only to see their revenues, profits AND business fall.

Here’s some of what you might see price reductions create within your business:

* Decrease of net profits
* Customers rush to the purchase of lower quality products
* Increasing customer demands to drop the price even lower
* Requirement of even more sales to make up the difference in revenue
* Needing a larger quantity of products and inventory to make up for lower margins

And, in the end, there will always be someone willing to go out of business faster than you. And you can’t (nor should you want to) keep up with that.

Remember this: price is not a benefit . The close of a sale is usually not determined on the cost of your product. If you properly “sell” your customers and prospects, they will purchase your products/services no matter what price you determine.

That’s the plain truth — and you’ve probably seen it in your own purchase patterns.

If a customer or prospect doesn’t buy — and they claim the cost had something to do with it — you can guess they probably wouldn’t have purchased anyway.

As a small business owner, and marketer, your job is to sell your products and services. But the actual art of selling has nothing to do with the price of the product.

By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.

So, find “real” benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product, and you’ve got a customer. Point out their current pain, and your contact will do anything to get rid of it.

Set your prices and hold fast. If you’ve marketed correctly, you will still have customers anxious to do business with you.

If you’d like to sit down and conduct an analysis of your pricing strategy, this is something which we’re very equipped to help you with. Give us a call ((414) 545-1890) or send me a quick email (click the email button at the top of this page) …

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

PS — If you are receiving this and are NOT a subscriber to our weekly “Real World” Business Strategy Note email series, send an email to me with the subject: “Add me to your business list”, and we’ll put you on there.

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Hammernik On 7 Ways To Increase Existing Customer Sales

Mon, 21 Sep 2015 08:10:00 GMT

Many Waukesha County area small business owners believe that the easiest customer to “sell” to is a referral customer, but in point of fact, the best kind of customer to sell to is … one you already have.

So, that being the case, it sure does make sense to make an investment in your relationships with your customers, yes?

You may have noticed that this is a theme I return to frequently here in my blog for Waukesha County small business owners. Why do I that?

Simple: as we look at continued uncertainty in world and national economies, the one asset that can never be taken away — and your *greatest* advantage over any other business in your space — is the relationships you have with your customers.

So, as your numbers cruncher and (perhaps in some sense) “coach”, I know that when I can convince you to make this kind of investment, you’ll thank me — and use my accounting services here at Hammernik & Associates for longer! So it’s not simple “charity” on my part to keep spending time on these Notes for you.

I hope that’s not disillusioning. After all, when you and your Waukesha County-area business do well, it helps us to stay in business.

But all that aside, here are some more ruminations on this theme, specifically about how to use direct mail to build those “existing customer” relationships…

Hammernik On 7 Ways To Increase Existing Customer Sales
“We must find time to stop and thank the people who make a difference in our lives.” – John F. Kennedy

I’ve spoken before about the value of a regular communication plan with your existing clients and friends here in Waukesha County (and beyond). And as I’ve done so, here are some things which I’ve discovered for you to carefully consider:

#1: Most Waukesha County small businesses pay too much in chasing new customers and too little in building repeat business with their current customers.

#2: The satisfied customer will likely purchase again. And they will purchase more, and will purchase something different.

#3: It definitely costs less to motivate a known customer to purchase again than to acquire a new customer.

#4 BIG IDEA: Customers are only fickle because a new competitor is paying more attention to them than you are.

In B2B, many companies make the huge mistake of having all their contact with their customers go through a sales representative. This leaves the customers vulnerable to theft if the representative jumps to another employer (especially if they are local in Waukesha County). It also leaves too much opportunity for negligence on the sales rep’s part.

Regardless of the layers of distribution between you and your customer, it’s a good idea to establish some direct link. The owner of a restaurant can do that by coming around and chatting personally with the customers. The chief executive officer of a large company can do it with a newsletter and maybe a hotline telephone number or an open email address.

Direct mail is also perfect for cutting through these layers (in addition to, and on top of email). Here are some of the ways that direct mail can be used to communicate with established customers.

#1: To introduce new products or services.
#2: To give advance notice of and explain price or fee increases.
#3: To offer special discounts or premiums.
#4: To provide useful information.
#5: To give recognition to top customers.
#6: To announce seasonal sales.
#7: Warm relationship building for its own sake

I’ve rarely seen a business that could not increase and improve through increased direct marketing to current customers.

Do not make the mistake of assuming knowledge on the part of the customer.

Do not take shortcuts with existing customers and do not feel that you are boring them by telling the same story repetitively.

If you have quality, service, guarantee, price or other advantages, point them out each and every time you deliver a sales presentation.

American business — especially here in the Waukesha County area — desperately needs to place a new higher value on the customer in this economy. Communicate more with your customers and you’ll do more business.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik On 7 Ways To Increase Existing Customer Sales appeared first on Talking Tax to Milwaukee .

Hammernik’s 4 Tips For Sending Better Marketing Messages

Wed, 16 Sep 2015 03:32:00 GMT

First, I did want to make sure you knew about the looming deadlines:

1) Estimated taxes for the third quarter are due on Tuesday, September 15th. If this applies to you, you know who you are. We’d love to help you, though, if you need a quick word of advice. Shoot me an email (click the email button at the top of this page).

2) Corporate filings are also due on the same day (9/15). Again, you know who you are, if this is for you … but let these simple reminders not be wasted!

Secondly, I wrote last week about how we can peel away from the “old” style of adversarial selling, and got some great feedback. THANK YOU for that — I put a lot of heart and thought into these notes, so your feedback is always appreciated. I have some additional, different thoughts this week.

I think it’s high time that we all realized that our customers and prospective customers have become “wise to the game” when it comes to certain, antiquated marketing tactics.

There’s a better way, now being adopted all over the place, but not just because it is very effective … in my opinion, it’s a much more ethical and principled way to sell.

Hammernik’s 4 Tips For Sending Better Marketing Messages
“You don’t lead by pointing and telling people some place to go. You lead by going to that place and making a case.” – Ken Kesey

“They” say that we’re all being slammed by over 3,000 marketing messages a day, and I believe it. Some, more than others, of course — but you have to know that your prospective customers are seeing something like that amount. Daily.

That’s a lot of messages.

And, in order to avoid information overload, many of us have trained our minds to completely ignore those messages.

That’s why you must properly implement a series of steps to *lead* your prospect to becoming a client — effectively AND ethically. Effective, because it actually works. Ethical, because it’s about delivering ALL of the information needed for a purchasing decision … and it’s not reliant on “sneaky” sales tactics.

And once you *implement* these steps to leading your customer to a sale…you can easily overcome those marketing filters your prospects have.

Here are the steps:

1) Get to know them.
When you know everything there is to know about your prospects, your messages become much more targeted. Which gets your prospect’s attention. And, your prospects will feel as though you truly care about them.

2) Follow up consistently.
When you consistently and effectively follow up with your prospects, your message will eventually sink in.

3) Offer your prospect actual value.
Every marketing message out there is an attempt to get your prospects’ money from their wallet. Imagine how you’ll stand out when your message does more than make a pitch. It educates, engages, entertains and/or helps your prospect in some way.

4) Value your customers .
Once your prospect becomes your customer, don’t abandon them. They need the same attention you offered them as a prospect. Offer that same personal attention and they will become a raving fan!

These are things which I’m consistently emphasizing to my Waukesha County business owner clients and friends. It’s because they work. And it’s a much more satisfying way to build sales.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik’s 4 Tips For Sending Better Marketing Messages appeared first on Talking Tax to Milwaukee .

8 Tips for Small Business Growth for Waukesha County Business Owners

Mon, 31 Aug 2015 14:54:00 GMT

It’s easy to make excuses when you run a business…

“The economy stinks.” (And yes, the Chinese markets have dived 9 percent, and the dollar is taking a tumble too. It does affect you … but wait for what I have to say.)

“Funding dried up.”

“The big chains are killing me.”

“My employees are messing up.”

Etc., etc., ad nauseum. Well, I don’t want to see you falling prey to shifting blame or responsibility in your business. After all, it really does stop with YOU, the business owner, to be the primary driver of revenue and growth which lasts.

You have to be the one to create the surges for your business. It’s tempting to think that sales growth will just … come … on the wings of a strong service or product and “getting your name out.” But that’s an elusive proposition.

We want to be more than just a number-cruncher for you. We want to help you think about ways that you can actually grow. Like these, perhaps…

8 Tips for Small Business Growth for Waukesha County Business Owners
“In actual life every great enterprise begins with and takes its first forward step in faith.” – Friedrich Schlegel

No matter what happens in your business, you can’t be reliant on the “business environment” to improve (indeed, some of my clients are seeing their businesses skyrocket during these “tough times”).

Sometimes you have to make it happen. So, based on what I’ve seen some of my smarter clients pull off, I’ve compiled some ideas for small business growth for the final quarter of 2015.

1. Cut the fat. Yes, now’s the time to review your company finances in a calm and collected manner. Be sure to look at what is being paid on time. Then look for waste and how you can save — there are certain to be a few places where this is possible. Eliminate expenses that aren’t essential to your core business. NOTE: resist the temptation to cut down your marketing!

*Let us know if we can help you analyze your books for cost-saving adjustments. (414) 545-1890 or send me an email by clicking the button at the top of this page .

2. Get to know your clients. Spend time with your customers and find out more about their needs so you can deliver what they want — when they want it. Also, consider sending out a customer satisfaction survey to gain additional insights. Continue offering great service and going above and beyond so that every customer feels as if they are getting the VIP treatment.

3. Stay ahead of the competition. Researching your competition is invaluable for making sure you’re competitive with their quality and service. Also remember that during harder times, some of the people who are laid off may start their own businesses. Monitor the market for newcomers, but remember that you have a head start.

4. Enhance your offers. Cutting prices is one way to make your product or service more attractive, but it’s NOT the only way — in fact, it can be a curse. You see, once you lower your prices, it can be hard to raise them again. So, think about adding other incentives like reduced delivery times or added bonuses instead.

5. Adapt to the market. If you notice that sales are declining in one sector, focus your efforts on areas that are seeing more sales. Don’t waste your time on sectors that are in freefall. If your business is focused on a single product, consider repackaging it, or a different positioning and be ready to cater to people’s changing needs.

6. Invest in yourself. Now is the perfect time to build on your knowledge, skills, and talents by attending conferences, taking a professional development course, or investing in a business coach. It will help position you as an expert in your field and give you a competitive edge. It can seem “expensive”, but often we need to get away from the day-to-day in order to think more clearly.

7. Make more noise. Continue advertising if you can afford it, but look for other inexpensive ways to get the word out. Perhaps start a blog, join social media groups in your field (especially on Facebook), or write a column for a trade publication or local newspaper.

Lastly…

8. Prepare for the good times! Remember that hard times are periodic, and they don’t last forever (especially if you are getting active, like I’m suggesting). Resist the urge to run for cover. Instead, keep doing business … and don’t get caught by shoddy operations or preparations when the surge comes.

Remember … the good times will come again — this is your chance to make sure you’re a part of them.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post 8 Tips for Small Business Growth for Waukesha County Business Owners appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 5 SMART Rules to Setting Business Goals

Mon, 24 Aug 2015 14:49:00 GMT

When I get together with my business owner clients, we try to look at EVERY aspect of their business (not just their books) … but also what’s *behind* the books (marketing, sales, management, etc.).

The good news for my business owner clients is that when we put in place clear metrics and financial reports, they shed clear light on strategic decisions.

But the problem I’ve often found, is that OUTSIDE of the financial reports we’re able to create for our clients, there are very few additional metrics in place to evaluate that they’re headed in the right direction — from a strategic, tactical and growth-oriented perspective.

Sure, financial numbers are great — but what are your GOALS? And, I don’t just mean sales goals. What do you want your business to look like two years from now? Five years from now?

Too often, business owners are so busy working “in” their business, that they don’t have the time to work ON these sorts of things properly.

So, I’ve got some words for you this week on the subject: setting business goals right.

Dale Hammernik’s 5 SMART Rules to Setting Business Goals
“Many people fail in life, not for lack of ability or brains or even courage but simply because they have never organized their energies around a goal.” – Elbert Hubbard

Sometimes as a business owner, you become so overwhelmed, the only thing you can do is take it one step at a time. And, although this may get you through the week, it’s not going to help grow your business. Real growth comes from writing out the goals you plan to achieve — and then putting those goals into action.

Here are five important rules to follow that we’ve found useful with clients in creating metrics and other goals:

1. Specific- Know exactly what your goal is.
2. Measurable- Know whether you achieved the goal.
3. Achievable- Speaks for itself.
4. Relevant- Relates to the big picture.
5. Time Bound- When will you reach the goal?

Did you know … only 3% of the population has written goals?

And, guess what?

They earn far more than the rest.

If you truly want to see improvement and growth in your company, take the time to create SMART goals. Then, be sure to make yourself and your employees accountable for those goals. Otherwise, you will always be taking it a day at a time.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s 5 SMART Rules to Setting Business Goals appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 5 Fresh Small Business Strategies For You

Fri, 14 Aug 2015 14:39:00 GMT

Don’t you just love Congressional tricks?

One of my personal “favorites” is when they cram a bunch of unrelated business into their bills.

Which is what just recently happened, and it could affect you…

H.R. 3236 , popularly known as “The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015” (yes, that’s how these things are named) brought some tax-law-related changes.

Regular tax returns are still due on April 15th — and a six month extension period is still available. But …

* Partnership tax returns are due March 15, NOT April 15 as in the past. If your partnership isn’t on a calendar year, the return is due on the 15th day of the third month following the close of your tax year.

* C corporation tax returns are due April 15, NOT March 15. For non-calendar years, it is due on the 15th day of the fourth month following the close of the tax year.

* S corporation tax returns remain unchanged–they are still due March 15, or the third month following the close of the taxable year.

On TOP of that, another doozy: audits can get you for six years now, instead of three. Without going into all of the details, essentially if you withhold reporting of 25% or more of your income, the IRS has six years to figure it out. They’ve always had unlimited time for fraud or criminality … but there was some wiggle room for underreporting in the past. No longer.

All this (and MORE!) in one measly highway bill.

So, it pays even more to work with a pro, yes?

These sort of issues are what we specialize in worrying all about — so you don’t have to. Because YOU have to keep your head in a bigger picture. Some thoughts for that below…

Dale Hammernik’s 5 Fresh Small Business Strategies For You
“Remember the two benefits of failure. First, if you do fail, you learn what doesn’t work; and second, the failure gives you the opportunity to try a new approach.” – Roger Von Oech

Waukesha County Entrepreneurs (like you) know that hard work and a great idea don’t guarantee success. Fortunately, most of them also know that failure isn’t final — almost every successful business owner client of mine has crashed and burned at least once in his or her career.

One of the best ways to pick yourself or your business back up off the ground is to take a fresh look at things that you “thought” were set in stone. Here are some small business strategies I compiled for you to possibly give your business a fresh lease on life, come fall, or into 2016…

1. Re-target your market. In the heat of start-up passion, entrepreneurs frequently try to interest too broad a market: “Everyone will want to buy this!” The result: getting lost in the crowd. The more closely you define your market, the more success you will experience.

2. Re-examine your price. Price is obviously supremely important. See how you can lower your overhead or cut production costs. Perhaps there’s a new way to package your products, so that your average transaction value can go up?

3. Identify and push your best product. Focus on what works. If your hot product is coffee cups, look for ways to highlight and expand that niche instead of veering into new territory. How about different colors and holders for those cups?

4. Make your marketing materials more memorable. Emphasize the benefits — SPECIFICALLY how features of your product or service will improve business or the quality of life for your customer. And scrutinize your advertising. Using big media is not always the answer, especially when you have narrowed your market. Don’t overlook narrowly-targeted marketing efforts, or joint promotions.

5. Keep promoting! Make sure your message sinks in. Find affordable ways to reach your target market, and use these avenues as often as you can. Try social advertising!

These ideas are to get you started. There may be longer conversations to be had. And that’s what I’m here for.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s 5 Fresh Small Business Strategies For You appeared first on Talking Tax to Milwaukee .

Dale Hammernik on Service Culture and the Deadly “Oversell”

Wed, 12 Aug 2015 20:31:00 GMT

I believe that one of the underreported stories in the business world over the last decade or so has been the creation of a thriving culture of service in the private marketplace.

This is an extremely good thing — it means a more pleasant marketplace, and it can actually be a competitive advantage for certain businesses (Zappos is one famous example, and there are others like it popping up everywhere).

But do you think, like I do, that it can be taken too far?

Now, please realize that what I’m talking about is actually not the “after-the-sale” aspect of serving your clients. I’d like to think it’s obvious that I believe it’s extremely important to make sure you can overperform on expectations and provide awesome service.

No, what has become problematic for many small business owners and sales professionals is that this service culture is leading them to create horrible positioning BEFORE a sale is actually made.

And that’s what I’d like to help you think about today, if you’ll let me.

Dale Hammernik on Service Culture and the Deadly “Oversell”
Vision is the art of seeing things invisible to others. – Jonathan Swift

Some say that you must ‘prove to your client that you’re willing to work harder, drive more miles, and bend over further than everyone else to earn his business.’

And, at first glance it seems like foolishness to say that anything less than fantastic customer service is going to cut it in today’s marketplace.

But here’s the problem: Most businesses try to communicate this way too soon, in the process of being way too eager to win the client’s business.

So you end up chasing the prospect, saying ‘Call me any time, day or night, text me, in fact here’s my home phone number. Shoot, I’ll jump out of bed and come and see you in the middle of the night, because man, lemme tell ya, I’m eager to win your business!’

Of course, prospects know that after the contract has been agreed upon, they still likely end up dealing with a bunch of apathetic drones in client service, and their work will STILL probably be late anyway — regardless of how eager the presentation.

That’s why your enthusiasm doesn’t help you.

So here are some tips to fix this problem:

1) Stop acting so eager.

Your client service people ARE busy, and they don’t have time to hold the hands of problem customers. Don’t be afraid to tell your prospects that they have to *qualify* to do business with you.

It’s counter-intuitive, but especially in certain kinds of industries, when the client finds out that you’re not drooling all over yourself to get his business, he’s going to respect you more.

2) *Guarantee* results to the client – with teeth.

Guarantee on-time delivery, specific levels of performance, with negative consequences for YOUR business if it doesn’t deliver the level of accuracy or quality you promised. But you do not have to promise people the moon! You just have to keep the promises you DO make.

This requires support from YOU, the business owner and on down. And most businesses don’t like to guarantee anything. (But when push comes to shove, you still have to deliver results anyway, right? Giving a guarantee often just means clearly stating what’s already true.)

If you aren’t willing to guarantee anything, then may I ask: “Why not?” Why should your clients take all the risk, after they’ve heard a bunch of empty promises which aren’t backed by an actual guarantee?

Even a modest guarantee can enormously empower your sales message. Define what you can and can’t deliver, go to the mat to keep your promises, and draw the line right there. Clients will be far more responsive and you won’t appear desperate.

People are cynical, and they’ll only believe what you can prove. Put something on the line … and they’ll trust you MORE.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik on Service Culture and the Deadly “Oversell” appeared first on Talking Tax to Milwaukee .

Temper Your Media Diet: Waukesha County Businesses’ Guide to Thrive in 2015

Mon, 27 Jul 2015 09:58:00 GMT

Iran and nuclear weapons.

Greece, the deteriorating European Union, and signs of shakiness in Chinese markets.

Continued social upheaval at home, and on the border.

Presidential campaign silliness, and the political chaos to which we’re all about to be subjected for the next 15+ months.

And in the middle of it all, we’re all facing our own private fears, struggles and frustrations.

So … may I remind you of a few things?

Hammernik’s Key Reminder #1: What you choose to “ingest” over these weeks will greatly impact your state-of-mind. Garbage in, garbage out, as they say. And, of course, the opposite is true — when you surround yourself with excellence and clear-eyed determination, you find that your heart and mind carry much greater strength.

Temper your media diet this week, as most of those outlets are (quite literally) merchants of fear.

Hammernik’s Key Reminder #2: The financial markets are driven by emotions — and by complicated algorithms that react on a hair-trigger to economic disruptions. Truly, the only thing certain about the stock market is that it’s volatile . So those of you with many assets resting there, don’t make moves out of panic. Sit down to discuss a tax-advantaged strategy … not a knee-jerk fear response.

Hammernik’s Key Reminder #3: The only thing you can truly control is yourself. You can’t control the market, you can’t control our foreign affairs (unless, of course, Mr. Kerry or Obama are somehow reading this — perhaps you guys can!), and there’s a real sense in which you can’t even, really, control your salary and income.

So, with those key reminders in mind, here’s what I suggest:

Call my office this week: (414) 545-1890 (or click the button at the top of this page to email me) and request one of our limited Tax Planning Strategy Sessions. During this session, we will analyze your current situation and identify the most tax-advantaged, wisest and most effective plan for your business income, no matter what happens with the economy, or with other outside factors.

After all, you CAN control your business … and we can help. The implications of the ACA are continuing to be felt by businesses everywhere, and there are a raft of tax law changes already implemented for 2015, as well as others coming down the pike in 2016 for which you’ll want to be prepared.

I’m personally dedicated to the success of your business–and to your finances! Can other accounting professionals say that?

Warmly,

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Temper Your Media Diet: Waukesha County Businesses’ Guide to Thrive in 2015 appeared first on Talking Tax to Milwaukee .

Hammernik on How to Grow Your Bottom Line in 2015

Mon, 20 Jul 2015 09:01:00 GMT

I have a question for you, one that I think you should think hard about:

Have you considered paying yourself more out of your business?

In some cases, it actually might make more sense to pay yourself less — but bring home more at the same time.

Well, if you’re not clear on how you could accomplish that, then reading this post right now will be very important.

Because, as you know, it is hard — and it is LONELY — to be a business owner in this environment. The media is bombarding your customers with messages of chaos and fear … and, of course, you can’t help but have some of those messages trickle into your own consciousness as well.

Which is why it’s so important for you to have a clear handle on the bottom line for your business — and on ALL of the tax implications you’ll be facing, and how to get ahead of them.

Look … I hope it’s no mystery to you why I often write about marketing and sales. Frankly, that’s the easiest way for you to grow your bottom line (add more to the top line).

But the second-best way to grow your bottom line is to avoid all of the unnecessary expenses and taxes which so many businesses end up paying, simply because they didn’t plan ahead of time.

When I meet with a biz owner, I often wear many hats — CFO, Marketing Advisor, COO, etc. — truly whatever fits the need of our client most precisely. Because business owners can make rash decisions in times of perceived crisis (like during “tax season”) — and they often have unforeseen complications down the road.

Which is why it’s critical that we take a look at how things are set up for you and your business for the rest of 2015. Here in the middle of summer (and BEFORE the fall rush) is the perfect time to take a clear-eyed look at things, and plan for the best outcome for your business, come January.

The implications of the ACA are continuing to be felt by businesses everywhere, and there are a raft of tax law changes already implemented for 2015, as well as others coming down the pike in 2016 that you’ll want to be prepared for.

And we’re going to make it easy for you. We’ll encourage you, give you good options … and point you into the best direction for your business’ long-term wealth preservation and growth.

Call us today to schedule an appointment: (414) 545-1890 (or send us an email by clicking the button at the top of this page).

I’m personally dedicated to the success of your business–and to your finances! Can other accounting professionals say that?

Warmly,

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik on How to Grow Your Bottom Line in 2015 appeared first on Talking Tax to Milwaukee .

Dale Hammernik On Why Managers SHOULD Sweat the Small Stuff

Mon, 13 Jul 2015 09:10:00 GMT

I’m going to deliver a bit of a rant today, and I hope you’ll forgive me in advance.

I suppose the subject would be consistent with the traits which make for success in my chosen profession, how I like to run my business, and my particular tendencies. However, that doesn’t mean this is any less true.

There’s a disturbing trend for small business owners these days. I don’t know if it’s because of the skyrocketing demands on our attention or exactly what is the possible explanation for it, but it’s a surefire way to allow your business to fail (notice my word choice there– ‘allow’).

Enough introduction, read on for what I hope is a shot in the arm of inspiration and, perhaps, a healthy challenge…

Dale Hammernik On Why Managers SHOULD Sweat the Small Stuff
“Being honest may not get you a lot of friends but it’ll always get you the right ones.” – John Lennon

Perhaps it’s not at all surprising that today’s manager is pulled in so many directions — and often does such a poor job.

It’s the irony of the digital age — we have so many tools at our disposal to “virtually” connect with one another, that the real work of connecting in person is becoming a lost art. Posting status updates, sending emails, blogging (yes, I get the irony), texting — we’ve forgotten how to work without the digital assistance.

And, ultimately, being a business manager is about actual interpersonal influence and leadership. When you’re used to leading virtually, it’s harder to lead in person.

Even worse, perhaps because of all of these distractions (or, perhaps because of a modern, misplaced desire to be liked) managers learn to ignore the “small things”, because there are just so many to keep track of that it seems “uptight” to track them. But when you start relaxing standards in the small tasks of your business, your bottom line will eventually be the real victim.

I was watching a speech from a corporate training expert, Stephen Paskoff, and he told an illustrative story.

Starting his first “real” job as a part-time salesperson at a shoe store, he was told by his boss to show up for his first day wearing a dark suit and a white shirt. But since Paskoff owned only a heavy gray suit of wool, and when the day dawned hot and muggy, he decided to avoid sweating all day by wearing a dark-blue blazer and matching slacks.

He walked into the store and was immediately greeted by his boss with, “Where’s your suit?” Paskoff replied, “It’s hot, and this is just like a suit.”

The boss told him, “I said a suit, not ‘just like a suit.’ Go home and come back in a suit if you have one. If not, forget it.”

Paskoff went home, changed, and spent his first month of work at the shoe store sweating until he could afford a lighter-weight suit.

What’s your response to that story? Do you think this is over the top? Perhaps you do — but you’d also be missing the part where this boss got results. Do you think that Paskoff was inclined to slack off on other managerial expectations after such a response? No, much like the “Broken Window Theory” often cited by economists, when we actually sweat the small stuff — and do it with the social grace of a caring leader — everything changes.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On Why Managers SHOULD Sweat the Small Stuff appeared first on Talking Tax to Milwaukee .

4 Common Accounting Mistakes Waukesha County Businesses Make

Mon, 06 Jul 2015 09:41:00 GMT

I trust you had a great, looong Independence weekend? Where did you take in the fireworks this year, if at all? (And did you see that Women’s World Cup final?? What fun.)

Moving on, this mid-year point is a great time to do a financial review.

However, for some small businesses, this can still create a big fat mess — made either by another accountant, a part-time bookkeeper in over their head, or [ shudder ] the business owner themselves!

After seeing too many business owner friends and NON-clients operate from a jerry-rigged accounting system, I thought it was a good idea to give you some perspective on what this could (and should) look like…

4 Common Accounting Mistakes Waukesha County Businesses Make
“Vision is the art of seeing things invisible to others.” – Jonathan Swift

These accounting mistakes are common enough that most experienced accountants could fix many of them in their sleep (well, that’s not *exactly* true). And, sadly, they’re usually created by either inexperience on the part of the bookkeeper involved, OR by lack of communication from the business owner.

If you’re facing financial or accounting issues, rather than blaming your bookkeeper, perhaps the source of the problem is in fact YOU!

Either way, here are common accounting mistakes, all of which, we can help you clean up.

1. Tracking Expenses Wrongly
Many Waukesha County business owners pay for expenses out of their own personal funds. And it’s no surprise that they often don’t keep accurate records of these expenses. Change that! Here’s why: The IRS frowns at the co-mingling of business and personal funds, and the best way to protect yourself in the event of an IRS audit is to avoid doing it in the first place.

That aside, you need to maintain effective communication between your bookkeeper and the rest of your team, be it yourself, or other staff. Essentially, your bookkeeper needs to make sure that everything is coded properly, or you’ll be in some hot water.

2. Employee Misclassifications
Many businesses have a combination of independent contractors and employees. And this is an area in which the IRS has been increasingly ruthless, as they search about for sources of additional revenue (i.e. penalties and additional taxes!).

Here’s the relevant IRS guidance on it: http://1.usa.gov/1y77kx3

Use it! The IRS has recently been making significant noise about their cracking down on businesses in this area, especially because of the ACA requirements. Do NOT get caught unprepared.

3. No Internal Cash Controls
Your business should have a monetary “line in the sand” on a monthly basis, the crossing of which should set off little alarms. These can range from the sophisticated (multiple trigger points and consequences), to the very rudimentary act of simply budgeting for each month.

But the main point is that your ACCOUNTING system should show you the way on this, on a monthly basis.

4. Backdating Too Much
Sure, it’s painful to have to reconcile and keep every expense entered on a monthly basis — which is why so many business owners don’t keep up with it (even when they’ve “outsourced” the task to a part-timer). The problem with playing continual catch-up is that problems AND opportunities are spotted too late.

For example, say you think one of your service or product lines is the most profitable … but circumstances have changed (whether expenses or other cost factors), and now a different item is most profitable. Well, if you’ve been pushing for what you *thought* was most profitable for six months and only now realize that you should have been pursuing a different strategy, that’s a bunch of time and money wasted.

In short, get a professional to help you with this stuff. (Ahem.)

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post 4 Common Accounting Mistakes Waukesha County Businesses Make appeared first on Talking Tax to Milwaukee .

Dale Hammernik on Making Effective Offers and Getting Your Prospects to Actually Respond

Thu, 02 Jul 2015 13:52:00 GMT

It’s been a momentous few weeks for the country, but as you and I both know … the real work of running and operating our businesses continues apace.

I believe that regardless of what happens on the national stage, and (perhaps more pertinent to business decisions) the international stage, with the continuing crisis in Greece, etc., it’s an important time for businesses to not give in to overly-positive or negative emotion, and to continue building their businesses with smart offerings and marketing.

Unfortunately, many businesses do a nice job with putting together sales pieces, etc., but when it comes to giving their prospect a reason to take action, they fall on their face.

You wouldn’t think an accountant would pay attention to this stuff, but it plays itself out in my firm as well. So here are some thoughts…

Dale Hammernik on Making Effective Offers and Getting Your Prospects to Actually Respond
“Live daringly, boldly, fearlessly. Taste the relish to be found in competition – in having put forth the best within you.” – Henry J Kaiser

Moving into and towards the end of summer, we’re about to see many different, creative excuses to reach out to customers or clients and cross-sell other services, or reach out to prospects and give them a reason to “get over the hump” so to speak, and make a purchasing decision.

However, one of the things I’ve noticed is that many small business owners or marketing directors write or deliver great sales messages … then when they get to the “offer” (the *reason* for the recipient to respond), the whole message falls apart.

The sale that was about to take place winds up in the trash.

So, here are some tips for making effective offers to match your powerful copy:

Don’t be ashamed of the price. Especially in this environment, too many companies try to skim past the offer, hoping their prospects won’t pay attention to the price. Guess what? They are going to pay attention! But, if you’ve written a good enough letter to sell them — then they’re sold. Don’t suddenly apologize for giving your product the price value it’s worth.

Give your prospects multiple options for purchasing. This one is close to my heart. Prospects need a variety of ways to pay for the product. Clearly present the payment methods you’re willing to accept (the more, the better!). Furthermore, give your prospect a variety of ways to order: phone, fax, mail, online. The more diverse you make it, the more orders you’ll receive.

Write the offer clearly. Be sure to include the price, exactly what the product or service is, and any additional bonuses you might be including.

Be sure to include your contact information! You wouldn’t believe how often this occurs to marketers and small businesses. Some really incredible marketing messages have been ruined by simply neglecting to give prospects a way to reach the company.

But most of all — plan ahead, and don’t miss the opportunities out there these next few months.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik on Making Effective Offers and Getting Your Prospects to Actually Respond appeared first on Talking Tax to Milwaukee .

Hello world!

Thu, 02 Jul 2015 04:49:00 GMT

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

The post Hello world! appeared first on Talking Tax to Milwaukee .

Hammernik’s 10 Skills To Master For Business Success

Fri, 26 Jun 2015 14:02:00 GMT

Last week I gave you a quiz.

Got some great responses … and in case you haven’t had the chance to comment, here it is again (I’d love to know how you feel you are doing in these areas, so we can help you even more effectively — email us by clicking the button at the top of the page):

How many “Yeses” can you answer ?

1) I have a financial statement for my business that is no more than 30 days old.

2) I reviewed my financial statement with my bookkeeper or accountant within the last month to pinpoint the potential trouble spots and identify pockets of easy cash.

3) I know exactly which products, departments and services give me the highest ROI (return on investment).

4) I have a year-end tax strategy based on my figures to date.

5) I know how much cash I have and how much I will need next week.

6) I can sleep at night, knowing that my record-keeping will support my deductions if the IRS audits me.

If any of these are concerns for you, especially with the regulatory situation continuing to evolve, let’s discuss ways that we can fix it for you: (414) 545-1890

The reason I’m asking you these questions is that it’s a large part of my job to work with business owners by “picking up the pieces” of their finances, and, unfortunately, it’s often too late to have done any good.

Yes, every day, my staff and I swim in an ocean of numbers. And we’ve become pretty quick about knowing what’s happening in a business by seeing where the “currents” are leading (if you will).

But, as I mentioned, often we’re stuck looking historically instead of real-time, because too many business owners don’t have a system in place for getting those numbers to us quickly. But when they do, we can very quickly know how to help.

But, I’d also like to identify for you some other numbers, which don’t show up on balance sheets, and why they’re perhaps even more important than what you see on a P/L statement …

Hammernik’s 10 Skills To Master For Business Success
“You can use the fanciest computers to gather the numbers, but in the end you have to set a timetable and act.” -Lee Iacocca

I sometime recently had a conversation with a client about the level of detail needed to survive in this economy. It’s easy to get lazy when a business can survive just with the low hanging fruit available in an easy marketplace — but, when the market shrinks because of funding availability, number of prospects, or profitability margins, then many people don’t know how to tweak their marketing and sales systems so they can track the numbers at each step in the sales process.

I have seen (in several industries) that the businesses who have weekly sales meetings, track the numbers and hold their team members accountable are successful … while those that guess and “assume” are usually out of business. It’s just a matter of time.

The key to business successis knowing the numbers — what is the average expected result and how you are measuring up against that result for each step in the process.

But many people don’t want to track the numbers, because they might have to admit that they aren’t doing their job and letting their teammates down, others simply do not have the systems or understand how to track those numbers or understand the benchmarks of the average business, the good business and the great business.

Many self-employed business owners just feel what they are doing is “working” without having tested it or tracking where they are at which indicates a complete lack of understanding of the basics of any business. Unless you have completed a valid split test and received statistically reliable results, you don’t have any idea whether you are improving or going backwards.

With all of the chaos happening seemingly every week, the mind of the American consumer is shifting — and many are downsizing, reducing debt and spending more conservatively right now (with some exceptions in certain demographics). Some business owners and sales people are realizing the days of easy pickings are gone for right now.

In some industries response rates are crashing, refunds are rising, bad debt is soaring, and sales numbers dropping.

Here is the cold, hard truth about business success — If you don’t know how to test scientifically — or if you do know but you think it’s not necessary — your business doesn’t have a chance.

Here Are The Numbers To Know…

To be successful from now on, you will have to develop expertise in direct marketing and sales. And that means mastering the following skills:

1. Statistically valid testing at each stage of the sales process
2. Structuring price, term, refund, and premium tests for profit
3. Determining the true lifetime value of every new customer
4. Calculating “allowable acquisition costs” (what you can spend to get a customer)
5. Measuring responsiveness by media source
6. Figuring the “doubling date” or “half-life” of a new offer or customer
7. Purging unproductive prospects and staff
8. Discovering your “optimal selling strategy”
9. Develop multiple streams of revenue in your business
10. Designing effective “peer reviews” and staff meetings

If you don’t have these skills — or if your key people don’t have them — consider your business to be in trouble. The market is tough now, and it doesn’t look like the “easy streets” of mid 2000’s are coming back anytime soon.

That being said, in a time when many businesses are going broke, others are doubling their sales.

And it starts with knowing your numbers.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik’s 10 Skills To Master For Business Success appeared first on Talking Tax to Milwaukee .

ATTENTION BUSINESS OWNERS: Don’t Mess With The IRS!

Wed, 24 Jun 2015 13:46:00 GMT

Have you heard about the indictment issued to the family which owns local Milwaukee restaurants El Beso and El Fuego? Their violation of federal tax laws has put them in some major trouble. Take a look at the report here:

Restaurant owners accused of cheating IRS, building cash, silver reserve

As you can see, the IRS is not someone you want to mess with. Not reporting cash sales is a huge red flag to the IRS, especially since they started requiring credit card companies to issue 1099’s. If the IRS notices that your total reported sales are close to the amount reported on the 1099-K for credit card sales, then they may choose to investigate via audit. Another mistake they made was paying employees in cash. These wages were not reported to the IRS and therefore there weren’t any employment taxes paid on those wages.

This case is an extreme case of unethical practice. However, there are business owners that may not be aware that they are breaking federal laws. That’s why it is important to have knowledgeable professionals overseeing your financial decisions. This will help you keep up to date on payroll taxes, sales taxes, and stay compliant with IRS law.

Let this be an eye opening lesson to all business owners.

The post ATTENTION BUSINESS OWNERS: Don’t Mess With The IRS! appeared first on Talking Tax to Milwaukee .

As you can see, the IRS is not someone you want to mess with. Not reporting cash sales is a huge red flag to the IRS, especially since they started requiring credit card companies to issue 1099’s. If the IRS notices that your total reported sales are close to the amount reported on the 1099-K for credit card sales, then they may choose to investigate via audit. Another mistake they made was paying employees in cash. These wages were not reported to the IRS and therefore there weren’t any employment taxes paid on those wages.

This case is an extreme case of unethical practice. However, there are business owners that may not be aware that they are breaking federal laws. That’s why it is important to have knowledgeable professionals overseeing your financial decisions. This will help you keep up to date on payroll taxes, sales taxes, and stay compliant with IRS law.

Let this be an eye opening lesson to all business owners.

The post ATTENTION BUSINESS OWNERS: Don’t Mess With The IRS! appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Simple but Effective Advertising Techniques

Mon, 15 Jun 2015 09:30:00 GMT

Before I address this notion of your advertising agenda, I wanted you to take a little quiz, of sorts.

So many new tax and ACA regulations are going to be coming down the pike in the next year, that it’s really important that you have your business squared away.

So, here’s the quiz: How many “Yeses” can you answer ?

1) I have a financial statement for my business that is no more than 30 days old.

2) I reviewed my financial statement with my bookkeeper or accountant within the last month to pinpoint the potential trouble spots and identify pockets of easy cash.

3) I know exactly which products, departments and services give me the highest ROI (return on investment).

4) I have a year-end tax strategy based on my figures to date.

5) I know how much cash I have and how much I will need next week.

6) I can sleep at night, knowing that my record-keeping will support my deductions if the IRS audits me.

If any of these are concerns for you, especially with the regulatory situation continuing to evolve, let’s discuss ways that we can fix it for you: (414) 545-1890

Now … to switch gears, I want to talk about marketing, and a big myth I see.

And, so you know (and as I’ve clarified before), the reason I do write about marketing so much is NOT to set myself up as some sort of guru — I’m not. But it’s one of the primary (if not *the* primary) factors in your revenue column. I can help you with the planning and expense side … but YOU have to manage the revenue side.

So, I put together ideas I see from my best Waukesha County clients — and I distill them into advice for you. This stuff works.

And this week is about another big myth which is sometimes making ad reps rich … and small businesses, not so much.

Dale Hammernik’s Simple but Effective Advertising Techniques
“We all start with all there is. It’s how we use it that makes things possible.” – Henry Ford

Advertising is obviously a crucial ingredient of any effective business plan, yet it actually works against many businesses — especially “small businesses”. You see, most small businesses mimic what they see the “big boys” doing (I mean, big mammoth corporations), and that’s like a thoroughbred horse jockey trying to imitate an elephant trainer.

You’ve got entirely different agendas as a small business owner. Many large corporations are engaged more with “marketing” than they are with direct advertising (which is what I addressed last week).

You see, to run a successful ad for a small business, it must do one of two things — and do these ONLY:

1) Generate Sales
2) Generate Sales Leads.

Even better — do it in a measurable, quantifiable way.

The best part — when you do this right, then you have no problem ‘getting your name out there’ … but you’ll also make money in the process.

Unfortunately, most businesses simply attempt to “get their name out there,” and it’s very likely that they won’t generate sales OR sales leads with such advertising techniques.

People don’t expect nearly enough from their advertising, and they don’t hold it accountable for results. So they waste thousands of dollars, and then they start pounding their sales people for orders on the 26th of every month.

So … what about when you’re trying to generate leads? Well, don’t try to accomplish overmuch at that stage.

You must remember that all you’re really trying to do for lead generation is to get people to “raise their hands” and identify themselves as someone who has a problem – and tell you who they are.

Anything more than that, will actually reduce your response. The purpose of pure lead generation advertising is NOT for you to tell them all about yourself – not in the first step anyway.

The only purpose is for them to tell you who they are.

When you do this correctly, it’s simple and effective. And most importantly, nobody feels like you’re chasing them.

And THAT’S a power position you want.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s Simple but Effective Advertising Techniques appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Secret Strategy to Planning Your Next Ad Campaign

Mon, 08 Jun 2015 09:41:00 GMT

Well, we’re now almost halfway through June (and a reminder — second quarter estimated taxes are due on June 15th. This is the quarter that always sneaks up on everyone, as it’s only two months after April 15th — so don’t get behind).

This is a good point to assess your progress in 2015 — I’d be interested to hear from you about how you are progressing in your sales and other business goals that you set at the beginning of the year. My contacts and clients are extremely important to me, and I’m interested in hearing of your progress. So do drop me a note (you can email me by clicking the button at the top of this page), just to check in.

As to the subject of today’s post, it’s something about which I’ve noticed some confusion among my clientele, and of course in the broader small business community.

There are certain activities which can and should be considered “marketing” that don’t necessarily have to bring in a specific ROI. I’m talking about your branding, your signage, your space (if you have one), and other activities intended to create good will.

But you should also make sure you include more direct forms of advertising in your marketing mix, about which I speak today.

And look, again, I’m just passing on to you information I’ve discovered to be true. I don’t pretend to be a “guru”, but nor do I want to be a victim of advertising reps and marketing agencies — and I believe in the power of sharing strategies that work with my clients. In my opinion, we’re moving away from the era of being “closed” with one another in business, towards an era of greater sharing, and openness.

So let me know what you think — along with how you are doing towards your goals.

Dale Hammernik’s Secret Strategy to Planning Your Next Ad Campaign
“You must either modify your dreams or magnify your skills.” – Jim Rohn

Have you heard that old line from an advertising rep: “People need to see your ad 8-11 times before they remember it” ?

Fine, but here’s the TRUTH: If your ad campaign does not work very well the first time, it probably won’t work eleven times.

This myth is leveraged to sell all sorts of advertising space and campaigns that are a waste of money. And because the people who tell you this ALSO tell you that you can’t measure advertising, you have no way of knowing whether they’re right or wrong.

So … you pull out your checkbook, spend a bunch of hard-earned revenue, and you have no idea what you got back. That’s not a great feeling, right?

Here’s how you combat it : First, figure out how much response you need to make it pay off. Play with the elements of your ad, running it in an inexpensive place, until it gets the response you need — THEN run it 8-11 times.

Second, figure out how to measure the response. (I consistently urge business owners toward this.) When you measure the effectiveness of advertising — and systematically improve it — you’ll discover that some ads produce 20 times as much results as others. When you discover formulas that truly work, you won’t just run them 11 times, you might run them for years. And you’ll make profits all along the way.

And when you actually test marketing messages for performance and experiment with them, you’ll find that tiny changes in wording can have large effects on response.

It’s absolutely scary to think about what can happen if you’re not testing things. And it’s absolutely incredible what happens when you are.

AdWords and Facebook ads enable you to bid on any words or phrases you want (or towards a specifically targeted demographic, in the case of Facebook), and to have your ads ONLY show up when people search. And you only pay when people click and visit your website.

It’s probably the fastest way to generate sales and sales leads. But it’s also an awesome way to test advertising messages in an inexpensive manner.

And the even-better news is: 95% of companies don’t test their advertising. Your competitors almost certainly don’t. If you do, you have a clear advantage over them.

Don’t be a victim. Test your ad campaign.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s Secret Strategy to Planning Your Next Ad Campaign appeared first on Talking Tax to Milwaukee .

Dale Hammernik Advises on Whether to Lease or Buy

Mon, 01 Jun 2015 09:05:00 GMT

I’d like to explain why I spend time in these weekly notes dealing with marketing, sales and management issues — especially since my specialty (and my team’s) is cashflow, forecasting and accounting.

You see, working with small business owners over the years, I’ve discovered that you, as an owner, can often feel like you’re on your own little island. Sure, you might have your trusted staff to hash through strategy — but who’s there for you who’s willing to take a cold, objective look at the true health of your enterprise?

That’s where we come in … and further, I often discover that my clients’ financial issues don’t stem from a “financial” problem, but a *sales* problem. I.E. Fix the sales problem, and the financial problems melt away.

So yes — I’m not your normal tax preparer, that’s for sure. Based on the feedback I receive, I know you’re grateful. But I’m putting back on my “tax hat” this week to answer a question I’m constantly getting from my business owner clients.

Read on, and feel free to email us (by clicking the button at the top of this page) any questions or comments.

Dale Hammernik Advises on Whether to Lease or Buy

The choice of whether to lease or buy a business car depends on many factors, and I aim to lay them all out for you.

You see, calculating the true, after-tax cost is not a simple task. Obviously, you must compare similar deals (for example, a 48-month lease and a 48-month loan for the same model car). In addition to tax considerations, you must look at factors like upfront payments, penalties in a lease contract for extra mileage or wear-and-tear, and the amount you pocket from eventually selling a car you own.

For tax purposes, you can sometimes come out ahead by leasing, especially if you drive an expensive vehicle.

The first tax consideration when buying a business car involves the “luxury” automobile depreciation rules that apply to any passenger vehicle which costs more than about $15,800 or about $17,300 for light trucks and vans.

And, of course, with the price of cars these days, most new vehicles fall into this luxury category whether you’re looking at a $19,000 Ford or a $65,000 Jaguar. So most cars fall under the special restrictions imposed on the depreciation of a luxury vehicle.

However, in an effort to help stimulate the economy, there was a new tax break in 2008. For a new passenger auto or light truck that is used more than 50 percent for business and is subject to the unfavorable luxury auto depreciation limitations, a “bonus” depreciation tax deduction greatly increased the maximum first-year write-off. (Used vehicles do not qualify for bonus depreciation.) However, as of this writing, this “bonus depreciation” does NOT apply for cars placed in service during 2015, as it was not extended at the end of December 2014 by Congress.

How can leasing sometimes be a tax saver?
When you lease a car, you can write off the portion of your monthly lease payments attributable to business driving. So if you pay $400 a month for a leased car and drive it for business 90 percent of the time, you can deduct $360 per month.

Because lease payments are partially based on the car’s expected residual value at the end of the lease period, you get to indirectly write off the car’s depreciation as part of the lease payment deductions. You’ll have to recognize an “inclusion amount” of taxable income when you lease a business car worth over about $15,800 or $17,300 for light trucks or vans. The exact calculation comes from IRS tables. The inclusion amounts are minimal compared to the limitation on depreciation deductions for a vehicle you own. So in most years, leasing may be more advantageous because it essentially allows you to bypass the annual luxury auto depreciation limits.

Still “Greek” to you? Well, let’s have a chat–we’ll take a look at your situation, and figure out your best plan.

Give us a call today: (414) 545-1890

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Advises on Whether to Lease or Buy appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Secret To True Value In A Business: Satisfied Customers

Mon, 25 May 2015 09:21:00 GMT

I hate that I have to do this sometimes, but I’ve come to realize that it’s part of the job.

I’ve written recently about the importance of “thinking big” and the value of your dreams, and how to break out of analysis paralysis.

The flip side of that coin is the clear light of harsh reality. And sometimes I have to shine that light — even in the midst of all that big thinking. (Which again, I love to see!)

So, as someone who helps clients evaluate businesses to purchase, and who (even more regularly) comes alongside existing businesses to assist them in valuation and/or in a simple analysis of their profits (or lack thereof), I’ve learned a thing or two about the true oxygen for a healthy small business.

Would you like to hear it?

[And I would be remiss if I didn’t also pause here to say, in light of the recent observance of Memorial Day: We are so very grateful for our servicemen and women who made the ultimate sacrifice. May all of us live our lives as a reflection of their honor, and the gifts we too-easily take for granted. ]

Dale Hammernik’s Secret To True Value In A Business: Satisfied Customers
“The magic formula that successful businesses have discovered is to treat customers like guests and employees like people.” -Thomas J Peters

How do you set a value on your business?

Here’s how to think about this: Consider not only your immediate short-term needs, but also your long term hopes; and in that process (this is the clincher), very carefully consider the value of the customer or client .

Every business, every product line, every service organization, even if it is distanced from the ultimate consumer by a chain of distribution, is still dependent on an actual consumer for its lasting success.

The greatest asset a business can ever possess is a known list of loyal , satisfied customers.

Recently, I observed a local business that was for sale. My observations revealed that the store’s inventory mix was poorly selected for its primary clientele, which were business people and office workers. Considerable floor space in the store was being wasted and the store did have excellent traffic during the day.

The asking price for the store was a little high (as asking prices usually are), but it looked to me like the numbers could be made to work. But then I asked the problem question, “How many people with their home addresses are on your mailing list?” This store owner (after five years of operating the business) had never bothered to collect his customer’s names and addresses on a mailing list. He had no way to directly reach out to his past and present customers.

He mistakenly thought that the value of a business is its lease, its furniture and fixtures, its inventory, its financial statements.

He didn’t understand that none of those things are worth much without satisfied customers.

Now let’s take big business. When you buy a new car or a new stereo or a new appliance you are separated from that product’s manufacturer by a chain of distribution that includes manufacturer’s representatives, wholesalers, warehouse operators, and the store or the dealer.

Yet you probably filled out a warranty registration card and mailed it to the manufacturer. Why is that done? One reason is so that the manufacturer can find out who its customer is. Some manufacturers then use these lists to market. Others just accumulate the data unsure of what to do with it, but at least they *have* a customer list.

As you establish marketing objectives, strategies and the VALUE for your business I urge you to carefully consider the value of the customer FIRST.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s Secret To True Value In A Business: Satisfied Customers appeared first on Talking Tax to Milwaukee .

Dale Hammernik On How To Stop Analysis Paralysis and Start Dreaming Big

Mon, 18 May 2015 09:24:00 GMT

The last few weeks, I’ve been writing with my accountant’s “green shades” firmly in place. Which is fitting, because after all, this is what I do.

But here’s when what we are really about here at Team Hammernik might surprise you a little.

You see, running a business with success requires more than just protecting yourself against audits, needless taxes and profit-sucking overhead. It requires that you keep your heart focused and alive.

Truly, if you can take the time to walk in GRATITUDE for what you’ve been given as a business owner, it makes a big difference in your happiness … and your bottom line.

I’ve seen far too many business owners get trapped into the cycle of stress, fear and being “tight” — that it’s incumbent upon me to point out the very real psychological commonalities in business failure: fear and lack of gratitude.

So, while the last few weeks have been all about regulatory protection and tax-savings, I’ll invite you this week to dream a little bit for your business, and for your life. And, of course, with some simple strategy to make those dreams come true.

And once more, a gentle reminder: Do NOT let the spring pass without meeting with us. There are likely to be many “tweaks” which we can make together that would directly affect your bottom line, and your tax bill for 2015. Call us NOW to set up an appointment, as our calendar is rapidly filling up during this season of mid-year evaluations: (414) 545-1890

Dale Hammernik On How To Stop Analysis Paralysis and Start Dreaming Big
“The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.” – Henry Ford

Yes, we can help you with finances and books (it’s what we do best) … but I can’t “get in your head” and make decisions for you.

I can, however, speak some truth (hopefully, with affection and encouragement) … and prompt you to win big during the rest of 2015, and beyond.

And, it starts with breaking free of analysis paralysis.

You see, part of the reason analysis paralysis occurs, is because we become too hesitant to act upon our ideas or dreams. Once we look at the “realistic” side of things, our natural fears and hesitation take over. And, that’s a good thing! It’s stopped many of my clients from acting stupidly.

Unfortunately, it can also keep us from taking ANY risks. Pulitzer Prize-winning author Annie Dillard said, “If we listened to our intellect, we’d never have a love affair. We’d never have a friendship. We’d never go into business, because we’d be too cynical. Well, that’s nonsense. You’ve got to jump off cliffs all the time and build your wings on the way down.”

Most of the great achievements in life started out simply as a dream. When business owners are able to turn their dreams into goals, and their goals into actions, amazing things happen.

So maybe, even with your established business, it’s time to think bigger? Maybe it’s time to take the mid-year step to start something new that has been burning and building in your heart, but you didn’t have the heart for it?

These might seem like self-evident steps, but there really is power in stepping back and taking the time for them:

Write down the dream. (Then place it where you’ll see it often.)
Think of all the steps/people/objects needed to fulfill the dream.
Jot down short-term and long-term goals to achieve all those needs.
Take it a step at a time.
Keep believing, and keep acting with the knowledge you’ve gained from each step.

One of the most tragic things in life is to see an unrealized dream. As an entrepreneur, you already know that this doesn’t have to be your fate. Be willing to dream a little more, and see what you can do that may break you out of a monotonous cycle.

I hope this helps … these weekly posts are just ONE of the ways we like to serve our clients.

The primary method of assistance, of course — making sure your bottom line is as healthy as possible! All so you can keep your business, and your dreams, alive.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On How To Stop Analysis Paralysis and Start Dreaming Big appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals Five Foundational Small Business Tax Strategies

Mon, 11 May 2015 09:17:00 GMT

So, last week I covered 11 basics for ensuring your business doesn’t get audited, and I’m glad to see the response I was hoping for: clients emailing me, thanking us and also a few who are battening down the hatches a little more tightly as a result.

That’s always a good thing.

Now then, I’d like to posit a few foundational tax strategies for my Waukesha County small business owner friends. Those who are already clients would have already had conversations with us around these topics at some point (although things can always change, so if you’d like to take a look at these things, this might be the perfect time — so drop me an email [you can click the button at the top of this page] or a phone call: (414) 545-1890), but if you’d like to get a good foundational review of your business tax strategies, these are really the five places to start:

Dale Hammernik Reveals Five Foundational Small Business Tax Strategies
“Plan your work for today and every day, then work your plan.” – Norman Vincent Peale

After April 15th, we find ourselves in the perfect time to re-assess where your company’s tax strategies are taking you.

For many, these are “training wheels” suggestions (i.e., your issues are much more complex, and a deeper dive is necessary), but even for certain well-established businesses, it might make sense to take a look at …

1) Your expense-tracking system
If your business is somewhat small, and doesn’t create a significant trail of automatic third-party tax documentation, then you might find yourselves someday in the crosshairs of IRS scrutiny. But it’s not just for the sake of beating an audit — it’s always a good idea to have monthly clarity (at the minimum) for where your revenue is going.

Now’s the time to make sure you have a good expense tracking system, receipt documentation and other cash controls in place so that you can not only prove your numbers when called upon by Uncle Sam, but even more importantly, that you can keep a firm grasp on your profit.

2) Basic deduction-taking
A quick example that comes to mind — claiming your home office. Even in larger businesses, the rise of telecommuting means that there are often good deductions to be found in tracking and recording the work done from home. Yes, it can be an audit “red flag”, but that’s only if you don’t claim it properly. It’s just one of the many great tax breaks available in the code, that aren’t terribly complicated but that a good professional ( ahem ) can easily ensure is getting taken in the most effective and ethical way.

3) Inventory and asset management
These can have a significant impact on your company’s tax liability — for good, or ill. Many small and medium-sized businesses are still using outdated inventory management systems (or they aren’t using available software) and/or they aren’t thinking through depreciation strategies versus other kinds of asset models. Again, these are basic questions for a professional, and can save your company boatloads … but only if you have someone who knows what they’re up to running the point.

4) Entity structure
So, when your company was young, it very likely started out as a sole proprietorship and you filed Schedule C as part of your personal return. That’s perfectly great in many situations.

But have you grown out of it? Chances are good that the answer is a resounding YES. What’s really important here is that you have someone who can dig a little bit into your business model and structure and propose the most advantageous entity. Sometimes the information on the internet (or, ahem, LegalZoom) isn’t as appropriate as you might think. Don’t jump quickly to a new entity (or naively remain in a poor one) without getting some clear advice from someone who deals with these issues on a daily basis.

5) Retirement, schmetirement
I know, I know … we’re keeping our powder dry (i.e., our money) so that we can make sure we are able to meet payroll and keep the business running every month. But as soon as possible you should take a good look at establishing a SERP (Self-Employed Retirement Plan) or an equivalent. Not only will you want to have something squirreled away for when you’re done conquering the world, but the immediate tax deductions can be very nice.

So, let’s make sure that you are clear with a strategy on EACH one of these topics.

Then, of course, we can get really ninja.

But this is where it starts, and the best first step is a phone call: (414) 545-1890

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals Five Foundational Small Business Tax Strategies appeared first on Talking Tax to Milwaukee .

Hammernik’s 11 Expert Tips To Audit-Proof Your Business

Mon, 04 May 2015 09:14:00 GMT

How can I make sure I don’t get audited?

What are my chances of getting an audit?

If I take that deduction, will it raise a red flag?

These are just a few of the questions we receive, probably about every week from our Waukesha County business clients (there’s more, but I don’t want to scare you — or give you any ideas).

And look — I’m not exasperated by the questions. But receiving these questions enough, as I do, means that I should probably write about it.

So, I’ve put together a primer for my business-owner clients and friends on avoiding audits, completely.

Here it is — and don’t make the mistake in thinking that just because the IRS budgets have decreased recently for this stuff, that nobody ever gets audited. Believe me, that’s not the case…

Hammernik’s 11 Expert Tips To Audit-Proof Your Business
“Some people come into your life as blessings, others come into your life as lessons.” – Mother Teresa

I’ve seen a fair share of audits, my friend. And, of course, nobody likes dealing with them.

That said, there are some pretty basic steps which YOU, as a business owner, can take to ensure this doesn’t happen to you. Some of these apply to those of my clients and friends who filed an extension (as they deal with your actual return), while others are year-round necessities.

But I will say right up front: If this is overwhelming to you, there’s a simple solution — have us handle all of it for you. But if you want to tackle it all yourself, here’s what you should be doing…

1. Make sure that any third-party income and reports agree with your records.

2. Make sure you have selected the correct forms and schedules to fill out. Ask yourself: Do the forms apply? Am I stretching the situation? Are there credits that I am entitled to whose forms I haven’t included, but need to?

3. Keep track of bank deposits so that all items will be easy to trace. Write the source of the check directly on the deposit slip , especially transfers between accounts, so that these are not inadvertently counted as income.

The first thing tax auditors request are your checking, savings, and investment accounts. They then proceed to do a total cash receipts analysis, comparing the total to the gross income shown on your tax return. By marking every deposit slip, you know where to look for further documentation to support your notation, and the auditor will have the trail in front of him or her, for the source of the unusual nontaxable receipts such as insurance recoveries, loans, gifts, and inheritances. Surprisingly, it’s not that much work, and is worth the effort.

4. Always keep your checking and savings accounts free of irregularities. Be sure you can explain large bank deposits and increases (especially sudden ones) in your net worth. WARNING: If you have unreported income of more than 25% of your adjusted gross income, the auditor may turn your case over to the CID. If you suspect this may occur, do not provide any leads to the auditor regarding the sources of the unexplained deposits. The burden of proof is on the IRS. You do not have to provide leads that make their job easier.

5. Keep your business and personal accounts separate.

6. If you know you are going to take a business deduction, pay for it by check.

7. Know the proper time to file. IRS computers are not programmed to review only those returns received before April 15th. So who is to say that late returns, those filed after April 15th, won’t be audited, or will be audited less than returns mailed earlier?

8. Be thorough. Don’t leave out any information. Sign where you are supposed to.

9. Be neat.

10. Check your mathematics.

11. Balance your total deductions with your income. Extensive deductions that add up to a substantial portion of your total income are audit flags.

Good tax preparers will make you “audit proof” while being extremely aggressive with your business deductions. A good tax preparer will also save you thousands of dollars a year and give you the security of knowing that all your deductions are legally defensible. We know that’s why you’ve chosen to rely on us … and we’re glad you rely on us to help you be Audit-Proof.

But, let’s posit that for some strange reason you (or a friend) did NOT choose us to file your taxes this year … well, then there’s this:

+++++++++++++++++
“No Charge” Return Review
Special Offer
As a complimentary service this year, we will provide a Return Review To Any Non-Client. We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. No charge will be made, unless we have to file an amended return. Email our office (using the email button at the top of this page ) or call (414) 545-1890 to set up this complimentary service!
Deadline May 8th
+++++++++++++++++

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik’s 11 Expert Tips To Audit-Proof Your Business appeared first on Talking Tax to Milwaukee .

Thinking Bigger With Your Time: Dale Hammernik’s One-Week Delegation Challenge

Mon, 27 Apr 2015 08:45:00 GMT

Recently, I encouraged you to re-assess your pricing model, and I gave you some ways that you could do so, and think bigger about what you’re worth.

But even getting paid more can still keep you in a velvet prison if you’re not smart with your time.

Just because you “have employees”, or you’ve been to a nice seminar on delegation, doesn’t mean that you are doing it well — that you are truly freeing yourself up so you can handle only the most profitable activities in your orbit.

And honestly, this is a pretty crucial skill, even if you don’t happen to be a business owner. It’s something that really anyone should take the time to develop.

Answer the question: what am I doing here — really?

The response (if you’re honest) might surprise you.

I also encourage you to take a look at what’s at the end of this post, even if only for the sake of your friends …

Thinking Bigger With Your Time : Dale Hammernik’s One-Week Delegation Challenge
“The ability to concentrate and to use time well is everything.” – Lee Lacocca

Many business owners hold themselves back through improper, or insufficient delegation.

What do I mean by this? Simple: it’s likely you spend too much time on activities easily handled by somebody else…and further down the pay scale.

There’s one major place small business owners get hung up that will keep you “running a business” instead of *owning* a business –and that’s investing in the support staff you need to take some of the heavy administrative and marketing burdens off your plate.

I hear so many excuses from clients who desperately need help but sabotage themselves with “I can’t afford it” or “I can’t trust anyone else to do the work” or “It’s easier to just do it myself or “I don’t have space for an assistant” excuses.

If you don’t make the investment in key support staff to assist you in the operations of your business, you’ll never grow beyond your current earning capacity and you won’t be able to serve your clients and customers as well as you possibly could.

At the same time, of course, you don’t want to get into a situation where you have too much support, which will result in bloated overhead and you keeping very little of your money.

So, how do you know if you have too much, too little or just the right amount?

For one week do the following:

1. Write down every single thing you do on a daily basis as it relates to your business. Track your time down to the minute and be sure to include seemingly minute tasks such as, “called the courier and arranged pick up of documents” to “ordered coffee for the office”. Have every person on your team do the same.

2. At the end of the week, circle everything on your list that could have been done by someone else. And closely examine what your team members were doing.

3. Make adjustments once you see how your time and your team are really operating. It can be hard to see what’s really going on, but it’s always worth it. Add up the number of hours you spent on the items you circled in step 2, and calculate how much more revenue you could have brought in if you had spent that time in revenue-generating (or marketing) activities instead.

Once you see what’s really going on, you can make decisions with knowledge instead of remaining in the dark about your business.

+++++++++++++++++
“No Charge” Return Review
Special Offer
As a complimentary service this year, we will provide a Return Review To Any Non-Client. We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. No charge will be made, unless we have to file an amended return. Email our office (using the email button at the top of this page ) or call (414) 545-1890 to set up this complimentary service!
Deadline May 8th
+++++++++++++++++

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Thinking Bigger With Your Time: Dale Hammernik’s One-Week Delegation Challenge appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 3 Steps To Thinking Bigger on Pricing

Mon, 20 Apr 2015 09:36:00 GMT

Despite the stock market increases, and the national economic figures from the government bureaus showing a recovery, it’s not always felt on Main Street, here in Waukesha County.

And I can guarantee that your competitors (and many Waukesha County small businesses) are stressing and fretting over how to *survive*, these days — let alone thrive. For many, this is a mindset issue, and it’s something I like to advise my business owner clients about.

Because often, when we get trapped in this cycle of stress and fret, we lose the vision and the ability to think bigger.

But your competitors may not have someone like me in their corner! That means they’re probably committing some serious mistakes … and, that can be a GOOD thing for you.

As your advisor, I’d like to see you avoid their fate.

Follow my advice this week. It’s your livelihood at stake here.

Dale Hammernik’s 3 Steps To Thinking Bigger on Pricing
“You have to see opportunity before you can seize it.” -Greg Hickman

It’s heartbreaking to watch so many Waukesha County small businesses go out of business or not bring home enough bacon simply because they get trapped into thinking about their pricing the wrong way.

When you differentiate yourself based on pricing, you simply cannot provide value. You end up competing on the wrong basis.

While price competitors have been in operation since the beginning of time, it’s important to understand that if YOU want to build a sustainable, scalable, and one day SALE-able business, a core foundational piece of that puzzle is that you must be charging enough for your services.

Is that possible in this economy? Absolutely.

Let me shift your thinking outside your particular world and into the retail world for a moment (though some of my readers are already living there). Stores that offer super-low prices like Wal-Mart and Target are thriving in this economy. So with that logic, you’d expect high-end stores like Nordstrom or Saks 5th Avenue to be out of business right now … but they’re not.

The super-high-priced Apple Watch is on everyone’s list. Luxury carmakers like Mercedes and BMW are reporting record sales despite the fact that “no one has money to spend.”

How can this be?

It’s simple, really. People DO have money to spend … if you’re not bringing it in, you’re simply not doing a good enough job showing them that your place of business is the best place to spend it.

You see, it’s all about the value. Could it be that you’re not communicating yours properly?

So how can you do this? Here are some things you can do right now:

1. Stop Acting Like a Commodity.
Your prospects have no way to know if you are the best option for them. To regular folks, most options are the same–in almost every industry. So when you compete on price, you’ll get price shoppers galore, who see you as just like everyone else. But, you are *not* like all the other options … are you?

So, what makes you different? And how do you show that to the marketplace? That’s what you need to focus on and show the world. Your prospects must turn to you because they trust you, and because they see your business as worth the money–not because you’re the cheapest option.

2. Identify the Value of the Outcome You Provide.
Why can Nordstrom’s charge higher prices for products found elsewhere (i.e. cars, purses, ties, shoes)? It’s because of the VALUE they’ve attached to their brand (i.e. social prestige, enhanced customer service, increased self-esteem). They’ve moved themselves out of the commodity market and into the heart, emotion and primal urges of their clients.

You need to do the same thing in your business. Yes, Mr. Customer can get a widget or receive a service for $XYZ … but what are they NOT getting when they work with that other option? Focus on these aspects. It’s not about the “feature” of your product or service … it’s about the intangible benefits from working with YOU.

3. Move Beyond “Typical” Pricing Strategies.
For service professionals, there are only so many hours in a day, and you’ll reach an income plateau very quickly when you are billing by the hour. Not to mention that you have to start every month over at zero — and there’s no stability in that.

So, my advice? Consider billing on a flat-fee/value basis.

If you’re scared to shift, just think of the VALUE your customers will experience having a professional using flat-fee billing. They won’t be nickel-and-dimed for every phone call, email and fax that comes through the office. They can communicate with you as they wish without fear, and they can pick their price point of choice if you have multiple flat-fee options. And believe me, people are willing to pay more for certainty every time. It’s a win-win for them — and it’s very much a win-win for the health/sustainability of your business.

For retailers or product providers, you can only play “margin games” for so long. So, identify *monthly* services which might augment the experience of using your products. Consider what your customers WANT, and the problems they face in using your services. Restaurants could initiate a “VIP club”, with special perks, automatic billing and exclusive choices. Merchants can create enthusiast groups, or lessons and coaching.

The point is to go *beyond* the widget … into the heart of your customers’ desires.

Remember this: People still have money to spend … in every economy. And they NEED your products or services (right?). It’s up to you to convey the intrinsic value of working with you (even at a higher price point) to command the income level you want (and rightfully deserve) this year.

Feel very free share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s 3 Steps To Thinking Bigger on Pricing appeared first on Talking Tax to Milwaukee .

Grateful To Serve Waukesha County Business Owners This Tax Season

Mon, 13 Apr 2015 09:59:00 GMT

Wow, this tax season has flown past like a bullet train. Thanks to you, our business has been hopping this year, and we don’t take it for granted.

Many Waukesha County business owners have had a whole slew of new concerns this year, as a result of the implementation of the ACA , and its attendant regulations. We’ve been honored to help you and others with all of it (including no small number of brand new local business clients).

For this and other reasons, we do have some clients going on extension (about which I wrote last week), and we will continue to work with them … after we take a short break around here for some needed rest!

And speaking of the IRS, perhaps I should also thank the federal government for creating a tax system so complex and counterintuitive that it has provided myself and those who work for me with gainful employment.

Leaving my own personal circumstances aside though, I’d be thrilled if our tax system was much simpler.

But it isn’t simple, and it is far better to live in the reality of what *is* (and work to make positive change), than to simply moan about a problem that is larger than what any one person can change.

I believe that, as a business owner, you understand what I mean by that.

Preparing tax returns is like that — it is dealing with what *is* — not with what “could be”. Which is why tax PLANNING will be the subject of a few of my Notes in the future.

We can do much for for you than simple historical reporting. Email me, or call me in a couple weeks, and we can discuss more fully.

Lastly, I hope you’ll forgive me for taking a break from writing you a Business Strategy Note for this week … I’m not sure that if I did so, anything besides numbers and spreadsheets would come out. It’s amazing what 4 months of staring at government forms does to a brain.

But hey — this is what we signed up for. And we are extremely grateful for your trust, and for the chance you’ve given us to serve you in it, so you don’t have to suffer the same fate.

We will be in touch again soon. Assuming, of course, that this newly-fierce caffeine hangover ever releases me from its foul (but oh-so-sweet) grip.

Warmly,

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Grateful To Serve Waukesha County Business Owners This Tax Season appeared first on Talking Tax to Milwaukee .

A Wise Pivot: Dale Hammernik’s Tax Season Inspiration

Mon, 06 Apr 2015 09:47:00 GMT

I would be remiss if I didn’t let you “in” a little bit to say that this tax busy season has been particularly busy.

Much of this is because of the steady stream of new clients calling, emailing and coming through our doors. But it’s also because of the brand new regulatory environment faced by businesses (and individuals) under the ACA .

But despite all of this, we have grown in our conviction that we have the best clients of any tax accounting firm in the nation.

I’ll speak more about that in the future, but I wanted to make sure you knew that we appreciate your kindnesses and warmth thus far.

Now … before I get to my main points, a few things to note:

1) Wednesday, April 15th is the deadline to contribute to IRA’s , etc., in order to have them count on this year’s (2014) taxes.

2) It is also the deadline to claim the almost $1BN in unclaimed refunds for returns dating back to 2011. If you, for some reason, didn’t file for that year, you could be missing out. Call us for this special circumstance: (414) 545-1890
(Or for any other question — but again, bear with us, as we are extremely busy!)

This week, I’d like to pass along an inspiring story. Sometimes around tax season, we business owners are tempted to pull pack, give up, or give in. Or, when facing criticism, we will just press forward, and face the torpedoes. Maybe we should get creative?

A Wise Pivot : Dale Hammernik’s Tax Season Inspiration
“Problems are only opportunities in work clothes.” – Henry J. Kaiser

Nineteenth-century publisher Cyrus H. K. Curtis had a passion for the newspaper business, but he didn’t always have a lot of success with it. He published his first weekly paper at age 13 and built it up until he had 100 customers. Unfortunately, a fire wiped out his business — but his determination to succeed in the industry endured.

By 1870, he was a successful advertising salesman for a small Boston newspaper. He was so good at his job that the owner offered to sell the paper to him for $250. Curtis turned the offer down, but the owner eventually gave it to him for nothing. Unfortunately, that publication failed, too.

Undaunted, Curtis founded a new one, The Tribune & Farmer. One day his wife asked him who wrote the feature called “The Woman’s Page.”

“I do,” said Curtis.

“It’s utterly ridiculous!” exclaimed his wife.

Instead of arguing, Curtis challenged his wife to write the page herself. Mrs. Curtis accepted the offer, and soon her page became the most popular section of the paper.

Recognizing a hot commodity, Curtis expanded the feature, and ultimately fashioned the publication around it, giving the paper a new name:

Ladies’ Home Journal.

The newspaper (and eventual magazine) went on to have one of the most successful runs in the history of publishing.

Imagine if Mr. Curtis had simply “given up”, or ignored the feedback from his wife …

May we, also, adjust and lead with such wisdom.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post A Wise Pivot: Dale Hammernik’s Tax Season Inspiration appeared first on Talking Tax to Milwaukee .

Hammernik’s 3 Big Tips For Entrepreneurs

Mon, 30 Mar 2015 08:38:00 GMT

There’s a scathing new film out that seeks to tear down St. Jobs from his Apple Empire pedestal ( http://bit.ly/1G944Dy ). And that’s fine. He was certainly a flawed man.

But here’s what I know: Steve Jobs made the business of being in business “cool” again. Those old enough to remember can hearken back to the early 80’s, when Lee Iacocca was the leading biz figure. And his contribution? An effectively-managed government bailout of Chrysler. ( editor–sounds familiar. )

Then Jobs burst onto the scene with the Apple Macintosh, and Silicon Valley millionaires jumped to the forefront. Guys in their 20’s, with style, making great products which the masses loved. Suddenly, business was no longer the realm of backroom cigar-smoked pinstripes. Oh, and those products sure are great.

And it wouldn’t have happened without a Wall Street IPO in 1980 when Apple raised $101 million.

So, in actual honor to Steve Jobs (and to not get caught up in the modern urge to tear down our public figures), I thought I’d put together my thoughts on real-world entrepreneurship … and how to manage it now.

Again, this is just for the purposes of being a helpful voice to you … I don’t presume to have all of the answers, but I *have* seen a few businesses work pretty darn well in my day.

Hammernik’s 3 Big Tips For Entrepreneurs
“Most of the successful people I’ve known are the ones who do more listening than talking.” – Bernard Baruch

In years past, being an “entrepreneur” could carry a negative connotation. The general public (or “civilians”, as one of my business owner friends refers to them) associated business owners with insanity. After all, who would invest everything they had into running a business that may or may not succeed?

Well, as I mentioned above, Steve Jobs did a great deal to change all of that.

Business ownership is now a badge of courage–something to be admired. In this economy especially, “business opportunity” companies are thriving. But here’s something you may be surprised to hear me say about these folks: Too many of the “new” generation of entrepreneurs want to play it safe.

They start a part-time company while still holding a regular day job. Or, they invest a little bit of money into a company, and back out when things become too difficult.

If this describes you, I have a little bit of news. You are a risk taker. Whether you would consider yourself one or not, you’re an entrepreneur…and therefore a risk taker. You took a risk in starting your company.

But are you holding back to the point where you’re stunting your growth?

Well, I can relate–I’ve never been known as a “free-wheeler”, but I’ve learned a few things over the years about risk–and reward.

So here are a few “big picture” tips for entrepreneurs, which you can use to guide your risk-taking decisions and still see large returns:

1. Invest in your education. The wisest entrepreneurs read about the success/failures of others, and plan accordingly.

2. Invest in a system. If you do not understand the importance of having a system in your company, read Michael Gerber’s books ( The E-Myth series ). But, I think you probably inherently understand how critical it is to make your business “scalable”.

3. Invest in sales and marketing automation. Marketing is the key to growing your business. And, automation is a way to run your company while you work on growing your company. Rather than investing in expensive sales people, figure out a way to make sales online, or through other advertising media … in a systematic, “hands free” sort of way.

If you’re not taking risks, you will certainly not see the rewards of your efforts. Take the time to analyze the level of the risks you might be taking. But realize that without being willing to go out on a limb once in a while, you will never see the rewards you dream of.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik’s 3 Big Tips For Entrepreneurs appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 10 Ways to Prevent Employee Fraud

Mon, 23 Mar 2015 08:43:00 GMT

I find myself playing a sort of funny role when I sit down to write these weekly posts.

On one hand, I’ve discovered that one of my most critical roles to play with my referral partners and contacts is to encourage them in the face of all of the doom and gloom running rampant in our media today. This requires me to write like a cheerleader sometimes!

And, with the other hand, I’m an accountant! I’m the uptight one in the room, and the one who is punching the brakes just when the visionaries are kicking their spurs and cracking the whip. (I also seem to specialize in mixed metaphors, apparently.)

Well, this week, you get Uptight Dale. But drink up — it’s good for you.

Dale Hammernik’s 10 Ways to Prevent Employee Fraud
“You can’t leave a footprint that lasts if you’re always walking on tiptoe.” – Marion Blakely

You don’t have to be a huge business for there to be major holes in your profit bucket!

I’ve seen enough business owner friends get burned because they did NOT have the following procedures in place, that I wanted to share these policies with my entire list. It is a very good idea to take every reasonable precaution to prevent employee fraud or theft in your company, and further — in the event it does occur — to be sure you are adequately protected with the right insurance.

So, I developed this fraud checklist which is a must for every business. Some of them might seem obvious, and yes they are, but do document (and enforce) this.

Don’t feel as though you’ll seem like a “big corporation” by implementing these — you’ll just be a smart business.

Oh, and I’ll even give you permission to put it in your employee manual.

Hammernik’s Fraud Checklist
1. Develop a code of conduct which explicitly prohibits employees from committing fraud, having conflicts of interest or engaging in any other form of illegal or unethical behavior. Ensure that all your employees, vendors and customers get copies of it. Have key employees provide annual confirmation of their compliance.
2. Have a clear company policy on time and expense reporting.
3. Verify the credentials of all new vendors before they are authorized to supply the company.
4. Make sure all disbursements are properly approved.
5. Use direct deposit for payroll.
6. Require two signatures on checks over a certain amount.
7. Review the bank statements before anyone else does. Consider having them sent to your home address. Review cancelled checks (or copies) and match payee names with endorsements. Review invoices for any payees you don’t recognize.
8. Make sure bank statements are reconciled each month and that your accountant reviews the bookkeeper’s work periodically.
9. Make sure everyone takes their full allotted vacation time and be suspicious about anyone who appears to live beyond their means.
10. If something seems odd, whether it is a disbursement to an unfamiliar vendor or an unexpected expense, check it out and don’t accept a casual explanation.

You can catch or prevent employee fraud 99% of the time just by following these simple steps.

I’m personally dedicated to the success of your business–and your staff. Can other tax accountants say that?

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s 10 Ways to Prevent Employee Fraud appeared first on Talking Tax to Milwaukee .

Dale Hammernik On A Smarter Way To Screen New Staff

Mon, 16 Mar 2015 09:16:00 GMT

Last week I encouraged you to take a hard look at the staff you’re “running with”, and whether they’re helping you or not.

And I mentioned that I’d be back with some counter-intuitive thinking about screening and interviewing potential employees who will actually help you.

Here’s what’s great about the approach I’m about to share: It doesn’t have to be used solely with prospective employees. Use this question-asking approach with your *current* staff, and watch your unity and effectiveness soar.

Dale Hammernik On A Smarter Way To Screen New Staff
“When placed in command – take charge.” – Norman Schwarzkopf

Frankly, there is just so much pabulum out there about how to conduct an interview… “What’s your greatest achievement?”; “How do you respond to adversity?”; “What’s your favorite color and why?” … and so on. Yikes.

Many interviewers (and managers) resort to this approach simply because it seems what everyone else does. Unfortunately, it’s not only lazy, it’s terribly ineffective. No, high-quality interview questions should have four characteristics:

1) They should be easy to answer. They need to be direct, and focused into specifics as much as possible.

2) They should have just one answer. Instead of asking a general question like, “How do you deal with deadlines?”, ask,”What was the biggest deadline you had in writing your last book? Step me through how you dealt with that deadline.” The second question gives you specific information you can use to evaluate the candidate.

3) They should have a clear, specific purpose. The purpose of every interview question is the same: to gather a piece of data–but it doesn’t ALWAYS have to be a direct attack. For instance, if you want to know if someone stays current on the latest technologies, a good question would be, “What technical journals do you read?” as opposed to, “What’s the last book you read?”

4) They should be task-related. Sure, we all like to delve into personal issues, but you’re always better off if you stay with topics that are very specific to the job.

I’ve put together a good list of sample questions that you can use as a guide for putting together interviews and performance reviews…these are samples of course, and can be a jumping-off point for you.

* Factual questions
-How many people report to you?
-By what percentage did you increase sales last year?

* Action questions
-How did you handle the last customer problem elevated to your level?
-Step me through how you debugged that particular program.
-How did you build your business plan for the roll-out of that division?

* Candidate-specific questions
-What was the last deal you closed?
-What was the biggest objection you got in that sales cycle? Step me through how you overcame that objection.

To recap, these specific interview questions are good because they require specific examples of behaviors, not just theories that sound good. If your candidate can provide specific examples of past behaviors, chances are she’ll exhibit those same behaviors in the position you have available.

* Probing questions (these are follow-up, clarification and detail questions):
-Tell me more about that.
-Could you please be specific?
-What do you mean by that?

Remember, past behavior is the best predictor of future performance.

I’m personally dedicated to the success of your business–and your staff. Can other tax accountants say that?

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On A Smarter Way To Screen New Staff appeared first on Talking Tax to Milwaukee .

Dale Hammernik Discusses A Company Culture Problem and a 3-Step Plan to Employ a Great Team

Mon, 09 Mar 2015 09:29:00 GMT

Have you ever read Michael Lewis’ book The Big Short ? It can be scary reading, even now, after the market has “recovered”. Though the reality behind that recovery may not be very firm, as I suppose we are still discovering, even now, years later.

But the book is a fascinating look at the systemic issues behind the subprime mortgage bond crisis which wreaked so much havoc in our economy a few years ago — as it continues to do.

But one thing is clear: human behavior is driven by incentives.

Speaking of incentives, there’s a deadline looming for our clients with a corporation structure: March 16th is the day we need to have your business tax return filed. This is NOT for those who use a “pass through” entity like an LLC, but rather for those who operate as an S-Corporation or a C-Corporation (though it should be noted that some LLC’s can “act” as an S-corp, but still maintain the LLC filing structure).

If you have questions on this, here’s the number to call: (414) 545-1890
Or visit http://WaukeshaAccounting.com/contact

Now, back to the other stuff: Lewis makes the compelling argument that the actual incentive structure within Wall Street firms created a rich environment for self-delusion and greed, on a massive scale.

Not nearly as perverse of course, but your employees are also driven by a series of incentives (just like you, and me too!), and it’s critically important to think through these incentives for how you manage (and whether you keep) your employees.

Here’s what I mean…

Dale Hammernik Discusses A Company Culture Problem and a 3-Step Plan to Employ a Great Team
“When planning for a year, plant corn. When planning for a decade, plant trees. When planning for life, train and educate people.” – Chinese Proverb

The success of your business depends largely on who you hire. You can spend all of your time developing marketing materials, and sales strategies, setting goals, investing in the latest technology and creating infrastructure–but if you hire the wrong people, you are simply not going to grow your business as you would hope. It’s not just “the economy”.

The wrong people damage your productivity, customer service, teamwork and sales. Ultimately, they will prevent your company from reaching its profit potential.

Look at your current staff. Odds are it is comprised of these two types of people:

1. People Who are Keeping Your Business Where it is Now
2. People Who Can Take Your Business Where YOU Want to Go

The ugly truth is: Your people usually can’t be both. And the right people today may not be the right people tomorrow.

I’d like to suggest a 3-step plan for changing this paradigm in your business that will help you employ a great team…

1) Acknowledge the problem.
Until you realize your people are holding you back, you’ll struggle to grow. No matter how much money you spend on advertising, inventory, technology, consultants (or yes–accountants!). Systems don’t work when you have the wrong people running them.

That’s why you need to take a hard look in the mirror, and implement a standards-based review of what’s actually occurring among your people.

2) Bring in new blood.
Make it your objective to only hire the right people for your open positions from now on. Many hiring experts might tell you that employee referrals are the best employees–but that’s only true if the employee doing the referring is a winner! The “right” people are those who fit your culture, their team and the job you are hiring them to do.

In fact, sometimes bringing in new staff sends a signal to current staff that their job isn’t guaranteed.

3) Create renewal.
You don’t always need to fire people for renewal to take place. Usually they will end up quitting on their own; especially once you start surrounding them with motivated, productive, team-players.

When your “mis-hires” and “workplace survivors” eventually quit, you can replace them with more of the right people. Though the earlier you do this, the sooner your business will start accomplishing the goals you’ve set for it.

Next week, I’m going to blow up some of the standard thinking in regards to interviewing and hiring your “new blood”. Be on the lookout.

Feel very free to share this article with a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

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Your Quick Guide to Dumping Bad Business Debt

Mon, 23 Feb 2015 10:39:00 GMT

Last week, I talked about dumping your worries in the right place. Well, there’s another thing to get rid of this week.

I hate sitting down with a business owner who got in over their head with financing. Unfortunately, it’s sometimes too late when I do — and the potential solutions end up being moot.

It’s a scary economic world right now. And it’s also a world in which good lines of credit are increasingly difficult to come by for the business owner.

If you don’t watch out, you can get into some hot water with the credit you use. I’ve seen it more times than I’d like, with my business-owner clients and friends.

I don’t want that to happen to you. It’s true, I have helped execute some near-miraculous rescues from situations like this for clients in the past, but sometimes it’s just too late when I have the opportunity to help.

So, I’ve put together a short primer on the subject, in hopes that I might be an effective resource for you in more ways than one.

Your Quick Guide to Dumping Bad Business Debt
“The man who makes no mistakes does not usually make anything.” – Edward Phelps

There’s a lot of discussion going on around the world about debt instruments and interest rates. We’re all seeing the consequences of the dangers of municipal debt.

And it’s true: most growing companies need to take on some amount of debt to fund growth, though debt at exorbitant interest rates is obviously “the wrong kind” of debt.

But choosing the wrong kind of debt for your business (or having too much debt) can be a killer to your business’ lifespan and success.

So, what is the “wrong” kind of debt to amass in business?

The following would make the list:

* Credit card debt
* Car-dealership vehicle loans/leases
* Personal loans at high rates
* A high mortgage balance

But in reality, the wrong kind of debt should be thought of as any debt that is either not necessary — or which could be refinanced at terms which are more favorable.

To remove bad debt from your business, you must plan to systematically review every outstanding loan … and try to find a way to either pay it off (without compromising growth, of course), or refinance it at a lower rate.

It will take time to organize your debts and search for alternative options that are more attractive for your business, but it will pay off in the long run.

If you have expensive debt (such as credit card balances), you should work to determine what other financing options are available to your business. If your company is profitable — or is showing strong signs of coming profitability — it’s likely that lenders will work with you to refinance at a lower rate.

And a tip: don’t think of this as a “favor” they are doing for you.

Rather, think of it as good business for the lender. These financial companies are in business to make money from loans. If you bring a good credit history and a viable business record to them, they’ll seriously consider lending you money at better terms and getting you out of the unnecessarily high payments you’re making.

Doing so will make your company all the more profitable.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Your Quick Guide to Dumping Bad Business Debt appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Key to Getting Rid of Worry Over Your Small Business

Mon, 16 Feb 2015 08:17:00 GMT

You ever lie awake at night, thinking about your business?

Yeah, me too.

Tax season, especially, keeps me and my team running a little crazy, and the adrenaline of handling so many clients, and doing it well, sometimes lasts into the night for me.

(Also, the adrenaline high we get when we find mistakes made by other preparers, or by software. Not to mention helping clients avoid this unfolding saga: http://onforb.es/1L572Kw )

But when I “wake up” in the morning after a bout of *worry*-fueled sleeplessness, splash some water on my face and grab a cup of coffee … I am often reminded that what I was worrying about just didn’t make sense.

I’ve lost too many hours of sleep as a business owner, frankly. But I’ve slept much better when I worked through this simple exercise for my worries. It’s from the American Institute for Cognitive Therapy, but I’ve modified it a bit for my own use.

So, here’s how I think you can stop worrying …

Dale Hammernik’s Key to Getting Rid of Worry Over Your Small Business
“Remember you will not always win. Some days, the most resourceful individual will taste defeat. But there is, in this case, always tomorrow – after you have done your best to achieve success today.” – Maxwell Maltz

For many people, worrying about things can become more vexing than the original problem they were grappling with in the first place.

I’m an accounting professional — so I’ll use an image I can understand: Imagine that you are facing a terrible tax situation and facing six figures of possible tax obligation. You’ve hired a good accountant in Waukesha County, and you’re praying she’s going to be able to help you. She leans over and says, “Don’t worry. I never do. I never worry about a thing. Instead, I just try to think positively.”

Now ask yourself: “Is this the person I want representing me? Someone who doesn’t worry about anything — not even what’s going to happen to her client?”

The answer, of course, is a resounding NO. You want an accountant who’s going to worry over details. And cover everything that needs to be covered, so you don’t end up in hock for multiple six figures! What you want is for your accountant to worry, and then take appropriate action so that she is prepared.

Now imagine an accountant who leans over and whispers to you, “Wanna know my secret? I never prepare for my client matters — I just worry. It’s why I’m known as such a great accountant. All I do is worry. As a matter of fact, a lot of times I actually worry myself sick and have to go into the restroom and throw up.”

Do you want this person representing you? NO! What you want is an accountant who can help you solve your problems. And that’s exactly what your worry should do for you: help you solve your problems. If it doesn’t, you’re probably participating in unproductive worry, which is unlikely to get you anywhere, except on your way to becoming overly anxious and probably depressed.

So here is the exercise which has kept me from worrying needlessly — but rather, doing it productively. I start by asking these two questions to keep worry in its proper place …

1. Is the problem plausible or reasonable? If you’re getting ready to take a trip to a national park, for instance, it’s appropriate to worry about getting accurate directions and your car tuned-up before you go. Worrying about being shot by a sniper along the way, which is unlikely, is probably a waste of time.

2. Can something be done about the problem immediately? If you answer yes to this question, then you can probably come up with an action plan to get something done that will alleviate your worry. If your cashflow is down, how can you INCREASE it by selling more, and obtaining more new clients — rather than worrying about the expense side of the coin. If your production has suffered recently, what are the positive steps you can take … rather than fixating on who to blame?

You get the idea.

Use these questions, and start sleeping better at night. I know I do…

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s Key to Getting Rid of Worry Over Your Small Business appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reviews The Almighty KPI

Mon, 09 Feb 2015 09:49:00 GMT

Before I get to my business intel, you should know that the personal tax world was roiling late last week over some fraud detected from within TurboTax.

Here is the story: http://onforb.es/1DNkQot

Essentially, the makers of the software detected a level of fraud occurring in state tax return submissions that made them decide to completely shut down submission of those returns for a period of time. Eventually, they determined that the apparent source of the fraud was outside of their system, and have resumed filing state tax returns. It does seem that TurboTax did everything by the book, and should be (relatively) safe to use.

This doesn’t, perhaps, affect business returns overmuch (especially if we handle them for you). Again, TurboTax seems to have handled this fairly well, all things considered. But when there’s a problem or question — would you rather sit on hold with the IRS, deal with online chat help, navigate through instructional videos, etc. etc. — or deal with a human who knows you?

Worth pondering.

Now — as we move more steadily into 2015, I think we should have a clear picture of what we’re shooting for in our businesses, yes?

Peter Drucker once said “ what gets measured gets managed, ” and it continues to remain true — regardless of advances in technology, and the multiplicity of tools we now have.

You see, accurate measurements provide feedback and it’s (only) with this information that you can make informed calls.

Think about your own personal goals (assuming you have them!). Perhaps last year you wanted to lose 20 pounds — so what would you do? One option would have been to get on the scales this week last February (back in 2014), and then to simply compare your weight at that time to your weight this week, one year later. I doubt you’d have had much success.

Instead you’d take regular measurements of your weight between the start and end date and make informed adjustments to your diet and exercise regimen according to what the measurements told you. You’d manage the process.

Let’s take a look together at what that can look like…

Dale Hammernik Reviews The Almighty KPI
“Get a good idea and stay with it. Do it, and work at it until it’s done right.” -Walt Disney

As we think about what it would look like for us to manage our bodies, there are all kinds of connections to other areas of our lives.

You see where I’m going here: It’s exactly the same for your business. If you measure your key metrics you can manage their performance. Each and every business has key performance indicators (KPI’s), some of which are common to other businesses, some which are industry-specific, and perhaps some which the company created for itself.

These sorts of things are our bread and butter, when working with local small businesses. A sampling of financial metrics…

* Average transaction value.
* Gross profit margin.
* A measurement of a company’s efficiency during the production process.
* How much is left over after COGS.
* Gross Profit divided by Total Revenue.
* Net profit percentage.
* The amount of profit for every $1 of revenue generated.
* Net Profit divided by Total Revenue multiplied by 100.
* Debtor days or receivable turn days.
* How long your customers take to pay you. (The sooner your customers pay, the sooner you can get that cash working for you.)
* 365 (days in the year) divided by (Sales on credit or invoice divided by Average Accounts Receivable).

More industry-specific KPI’s might include:
* Table turns per night.
The number of times a restaurant is able to sit customers at a table.
* Utilization.
The number of hours a machine in the production line can run.
* Rejection rate.
The number of defects rejected in an assembly line.

Non-specific KPIs might include:
* Customers won/lost.
* Customer complaints/product returns.
* Staff sick days.

You must absolutely integrate the RIGHT measurements to provide proper feedback on your business’ performance.

I hope this gets your juices flowing. Many of these financial indicators are things that WE can help you to implement … if you let us!

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reviews The Almighty KPI appeared first on Talking Tax to Milwaukee .

Hammernik’s 2015 Tax Time Document Chase List

Mon, 02 Feb 2015 21:17:00 GMT

Well, our offices have officially started jumping.

(Not literally , of course.)

The IRS started accepting electronically-filed returns about two weeks ago, and we have already been working long hours to thoughtfully and thoroughly serve the clients with whom we’ve already met.

Today, I have something that will help that be YOU.

As I’ve mentioned before, if you are one of our business clients, we are also glad to handle the preparation of your personal tax return. Depending on your business entity, we may not be able to file your personal return until your books are in order. Start that process now.

[And, of course, this is also something we are glad to help you with. Don’t try to “go it alone” in these areas … it can be a 4-5 figure mistake!]

Filing your taxes on your own is becoming much less fun for regular taxpayers, even with nice-looking softwares on the market which purport to make it “easy” for you. This is ESPECIALLY true for business owners.

I truly do pity those inexperienced ones who try to muddle through all of the different codes and forms on their own, without devoting even a week’s labor to the transaction. It really doesn’t pay to “go it alone” for certain tasks.

So, I’ve put together a handy little list of what you’ll need to bring in, which is something I make a point to provide each year. There may be certain situations where we’ll need other documentation to get you even more deductions. But, of course, we’ll let you know about that, should the situation arise!

Let me know your thoughts … and of course, if you’d like to talk this over with us, we’re here for you: (414) 545-1890 (our phone number) is your friend.

Hammernik’s 2015 Tax Time Document Chase List
“My ability to concentrate and work toward that goal has been my greatest asset.” – Jack Nicklaus

Yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! But these items will cover 95% of our clients. Really, this is for ensuring that we’re able to help you keep every dollar you can keep under our tax code.

Even if for some strange reason you won’t be using our cost-effective services this year, feel free to use this list as a handy guide…

Personal Data
Social Security Numbers (including spouse and children)
Child care provider tax I.D. or Social Security Number

Employment & Income Data
W-2 forms for this year
Tax refunds and unemployment compensation: Form 1099-G
Miscellaneous income including rent: Form 1099-MISC
Partnership and trust income
Pensions and annuities
Alimony received
Jury duty pay
Gambling and lottery winnings
Prizes and awards
Scholarships and fellowships
State and local income tax refunds
Unemployment compensation

Health Insurance Information (New for 2015)
* All 1095-A Forms from marketplace providers (if you purchased insurance through a Marketplace)
* Existing plan information (policy numbers, etc.)
* If claiming an exemption, your unique Exemption Certificate Number
* Records of credits and/or advance payments received from the Premium Tax Credit (if claiming)

Homeowner/Renter Data
Residential address(es) for this year
Mortgage interest: Form 1098
Sale of your home or other real estate: Form 1099-S
Second mortgage interest paid
Real estate taxes paid
Rent paid during tax year
Moving expenses

Financial Assets
Interest income statements: Form 1099-INT & 1099-OID
Dividend income statements: Form 1099-DIV
Proceeds from broker transactions: Form 1099-B
Retirement plan distribution: Form 1099-R
Capital gains or losses

Financial Liabilities
Auto loans and leases (account numbers and car value) if vehicle used for business
Student loan interest paid
Early withdrawal penalties on CDs and other fixed time deposits

Automobiles
Personal property tax information
Department of Motor Vehicles fees

Expenses
Gifts to charity (receipts for any single donations of $250 or more)
Unreimbursed expenses related to volunteer work
Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)
Investment expenses
Job-hunting expenses
Education expenses (tuition and fees)
Child care expenses
Medical Savings Accounts
Adoption expenses
Alimony paid
Tax return preparation expenses and fees

Self-Employment Data
Estimated tax vouchers for the current year
Self-employment tax
Self-employment SEP plans
Self-employed health insurance
K-1s on all partnerships
Receipts or documentation for business-related expenses
Farm income

Deduction Documents
State and local income taxes
IRA, Keogh and other retirement plan contributions
Medical expenses
Casualty or theft losses
Other miscellaneous deductions

We hope this helps, and we really look forward to seeing you in here in 2015!

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Hammernik’s 2015 Tax Time Document Chase List appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals The Importance of Specialized Knowledge

Mon, 26 Jan 2015 08:29:00 GMT

Well, this week I want to tell you a story, and it’s one that will help take some stress off ye olde plate, for you and your business.

There are more than a few lessons in this (old) story …

… the importance of knowing “who to call”
… the amount of knowledge that doesn’t get passed along during staff transitions
… bravely charging what you’re worth …

But I’ve saved the most pertinent lessons for the end.

A few reminders before I share them:

* 1099’s and W-2’s are due to be mailed by Monday! If you need help with this process, this is something we *routinely* do, even for previous or non-clients. Give us a call: (414) 545-1890

* On the personal side, if you are one of our business clients, we are also glad to handle the preparation of your personal tax return. Depending on your business entity, we cannot file your personal return until your books are in order. Start that process now.

[And, of course, this is also something we are glad to help you with. Don’t try to “go it alone” in these areas … it can be a 4-5 figure mistake!]

Now, assuming you’ve got those w-2’s and 1099’s all set, delegated, etc…. let’s talk about the right kind of knowledge …

Dale Hammernik Reveals The Importance of Specialized Knowledge
“Most people give up just when they’re about to achieve success.” – Ross Perot

Some years ago, one of the major manufacturing companies in this country was facing a crisis. The central conveyor belt of its automated assembly line quit running and brought the entire plant to a stop.

Although they tried everything they could think of, and even brought in several consultants, no one was able to get the conveyor belt running again, or even to identify what caused the breakdown in the first place. The company was really in a bind. With ongoing overhead, and the loss of production, the company was losing money at the rate of $1,000,000.00 a day.

Finally, after a week of down time, the big brass told the plant manager to call Tom — the mechanical engineer who had retired the year before, after 25 years with the company. The conveyor belt had been Tom’s specialty and primary responsibility.

When Tom got the call, he caught the next flight from the city where he now lived and arrived at the plant the next day. He met with both the local vice president and the plant manager to get as much information as he could as to what had happened and what they had tried. He then walked slowly along the belt until he came to a particular point.

He put his ear against the machine and listened. He asked for a hammer and then gave the machine a swift and forceful blow.

“Give it a try now!” he called to the foreman. The conveyor belt started right up and ran like a dream.

Tom then left and went back home, but before he did, the company vice president told him to send them a bill for what he had accomplished. Two days later, the company received Tom’s invoice for one million dollars!

Thinking that was way too high for the little time Tom had spent to solve the problem, and how he did so with just a single blow from a hammer, the company wrote back and asked Tom to provide them with an itemization. This was Tom’s response:

One hammer blow: $2.00
Knowing where to hit it: $999,998.00

With the receipt of that simple invoice, the company came to understand the reason for Tom’s fee and immediately issued a check to him for one million dollars.

Special knowledge is the key. Although the company’s leaders had to be reminded of that fact by receiving Tom’s invoice, as soon as it did, they knew he was right. They could have given hammers to every employee in the plant and even had the big brass banging on the machine from sunrise to sunset, but it would have done no good … because they didn’t have the knowledge; they didn’t know where to hit it.

This is an old story, told in different ways, with different names and amounts. But it’s powerful for a simple reason: labor is NOT about how much “time” is put into executing a particular solution to a problem — it’s knowing when and how to do it.

In the realm of preparing your tax return for your business, I urge you … do NOT fall prey to the thinking that a software program or forms downloaded from the internet can suffice to enable you to preserve your resources, or properly leverage the multiplicity of credits, loopholes and deductions available.

Give yourself and your business the gift of financial peace of mind during tax season, and do it with someone who knows how to do it right.

I’m grateful for our partnership, and for your referrals!

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals The Importance of Specialized Knowledge appeared first on Talking Tax to Milwaukee .

Six Questions For A Clear-Eyed Look At Your Business (Part 2)

Mon, 19 Jan 2015 10:27:00 GMT

I have a few more questions for you today.

Last week, I identified the six major mistakes made by local business owners … and I’d like you to thoughtfully consider the questions I’m asking, and send me an email with YOUR answers.

You don’t have to email, of course … but please do consider these six issues as you work through growing your business — they can really catch you off guard sometimes.

As I mentioned last week, most of these issues are things which I and my firm do not handle, which is why, if necessary, I will gladly recommend to you someone who can assist you with them — and do it well.

So, here are the final 3 …

Six Questions For A Clear-Eyed Look At Your Business (Part 2)
“I look to the future because that’s where I’m going to spend the rest of my life.” -George Burns

Continuing from last week, every business has its blind spots.

Too often, legal and financial planning are left behind in the pursuit of operations efficiency and sales.

And that’s a huge mistake.

Take a look at each of these questions, and if you are troubled by any of your answers–give me a call ( (414) 545-1890 ) or send me an email…

Mistake #1: Is the value of your business firmly established? [Buy/Sell Agreements]
Mistake #2: Is there an emergency plan? [Will & Asset Protection Strategy]
Mistake #3: What is to happen next? [Business Succession Plan, and more]

#4: What are your retirement plans?
Questions to consider:
* Do I know how much income I will actually need at retirement?
* How much control in the business must I maintain to secure my retirement income?
* Have I looked into financing options for key employees to buy me out?
* Do I want to be running my business, full-time, five years from now?
* Do I have contribution protection for my retirement if I were to become disabled?

Too many business owners view their business as their “retirement cash cow” … but have not made serious plans for how it can BE that cash cow.

#5: Are all of your eggs in one basket?
Questions to consider:
* Do I have reliable investments, other than my business?
* Will my business assets account for less than 25% of my retirement plans?
* In the past year, have I spent more than one hour planning my retirement?

If you haven’t diversified your retirement income outside of your business, you could be in trouble.

#6: Is there a REAL tax strategy?
Consider these questions …
* Am I pro-actively planning to deal with tax law changes?
* Have I determined my financial goals — and how taxes will affect them?
* Will I maximize my tax-free earnings in retirement (and before retirement)?
* Do I have an exit plan for my business — and is it written down?

Again, all of these issues always seem “procrastinate-able” on the front end … but if you don’t have a good answer to more than a couple of the above questions, you might be cruising for a financial bruising.

We will either help you fix these issues ourselves, or put you in touch with someone competent who can help to fix it. Call: (414) 545-1890 or send me an email.

I’m grateful for our partnership, and for your referrals!

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in business tax preparation and planning (for Waukesha County business owners, as well as families). And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Six Questions For A Clear-Eyed Look At Your Business (Part 2) appeared first on Talking Tax to Milwaukee .

Six Questions For A Clear-Eyed Look At Your Business (Part 1)

Mon, 12 Jan 2015 08:07:00 GMT

I have some questions for you today.

Running a business effectively, seeing it grow (or shrink), can be a time-consuming process, so I don’t blame you for little mistakes you may have made along the way.

But mistakes made out of improper planning — well, I can’t let those happen to you and sit idly by.

So, in that spirit, and as we launch into 2015, I’ve identified six major mistakes made by local business owners … and I’d like you to read the list (starting with the first three this week), thoughtfully consider the questions I’m asking, and send me an email with YOUR answers.

You don’t have to email, of course … but please do consider these six issues as you work through growing your business….

Since we mainly work with business tax clients, some of these issues are things which I and my firm do not handle, which is why, if necessary, I will gladly recommend to you someone who can assist you with them — and do it well.

But regardless, you should take this chance to look these over … and, further, to review the little treat I left for you at the end.

Six Questions For A Clear-Eyed Look At Your Business (Part 1)
“A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.” – Henry Ford

When you’ve seen the “unexpected” strike so many businesses over the years (as I have), you tend to see certain optimistic New Year’s projections made by entrepreneurs with a bit of a jaundiced eye.

I’d hate to see you get burned .

Which is why I’m about to raise some issues to you, and ask you some questions. It’s a bit of a different approach than I normally take in my blog, but if you take it seriously … it can be a transformative process.

Take a look at each of these questions, and if you are troubled by any of your answers — send me an email … and again, if it’s not something we’re equipped to handle, we can equip you with a good advisor.

#1: Is the value of your business firmly established?
Questions to consider
* Have I ever had my business value appraised by an outside party?
* Do I have a formal buy/sell agreement in place?
* Is my buy/sell agreement funded?
* Does my buy/sell agreement adequately protect my heirs, my business, and my partners?
* Has this agreement been reviewed in the last 3 years?

If you have any plans to someday extricate yourself from your business (and you should ALWAYS consider your exit strategy), these are critical questions.

#2: Is there an emergency plan?
Questions to consider
* Do I have a will, and is it up to date with my business wishes?
* Do I have a plan to retain key employees if something were to happen to me?
* Are my assets protected from potential litigation?
* Have I identified and written down my trusted advisors?

Unless you plan to forever cheat death, a business owner would be foolish to not prepare for that event.

#3: What is to happen next?
Questions to consider
* Do I have a formal succession plan prepared and on file?
* Does my succession plan have a provision for disability?
* Have I involved both family members AND key employees in my succession planning?
* Do I have a disability buy-sell, or overhead expense coverage?
* Do I have contribution protection for my retirement if I were to become disabled?

Again, these eventualities always seem remote on the front end … but if your answer is “no” to more than a couple of the above questions, it would be a good idea to get in contact with someone competent to help you fix it.

I’ll be back next week with mistakes 4, 5 and 6.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in business tax preparation and planning (for Waukesha County business owners, as well as families). And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Six Questions For A Clear-Eyed Look At Your Business (Part 1) appeared first on Talking Tax to Milwaukee .

Dale Hammernik On Saying No and Staying Focused in 2015 (Part 2)

Mon, 05 Jan 2015 11:06:00 GMT

Last week, I wrote about saying “no” in your business.

In the days after posting it, I realized another place where we need to say “no”, if you will — and it’s one which is possibly much more important.

It’s about how we, as business owners, process the world around us.

Frankly, I’m tired of seeing small business owners who are “beaten down” by all the fear and stress in their lives, and there is one major source for it — which I would like to have you understand is entirely optional.

And I suggest you “opt-out”, if you will.

Dale Hammernik On Saying No and Staying Focused in 2015 (Part 2)
“One resolution I have made, and try always to keep, is this: To rise above the little things.” -John Burroughs

Life as a small business owner isn’t always a trip in the sunshine.

But it’s made so much harder by the tendency of our world to suffocate you with mental junk and global negativity.

I believe that the number #1 danger for small business owners moving forward in 2015 is allowing today’s world to starve your brain with “junk food” and deaden your spirit with the overwhelming feeling that you are small, insignificant … helpless.

I’ve learned to avoid the 24-7 news channels, and the sites online that traffic in fear. I figure that I’ll see what I need to when seeking out resources for our clients about current events. But recently, I did, in fact, watch some CNN.

Now, CNN is about as bland as you can get — it’s “normal” to “normal” people. But I also realize, most “normal” people accomplish relatively little in their time on this planet (at least on the outside). Those of us who are going somewhere in life must have better things to do than to listen to talking heads opine about dozens of tragedies that we can’t (and won’t) be able to do anything about.

But right now, the world is swimming in negativity. And you need to be serious and proactive about it. Because — if you don’t — it’ll kill your business, kill your sales, kill your dreams and everything you really care about.

The mass news media is NOT your friend.

They feed on fear, and they sell paranoia, division and hyperbole. It’s what they do.
And not only must you protect yourself from this drip, drip, drip of depression, you need to fight it on behalf of your clients.

Tell them what’s good. Greet them with a smile and with encouragement. Tell them what they’re doing right. Give them a voice to the hope within their bones–which is too often buried in a junkpile of media-fueled negativity.

You (and they) need to celebrate little tiny victories. Every. Day.

This is an essential skill for a business owner: when you have a major victory in your life, you need to find encouraging people who will celebrate it with you. Because good news is good news indeed.

Best to you. May your 2015 be full of JOY.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On Saying No and Staying Focused in 2015 (Part 2) appeared first on Talking Tax to Milwaukee .

Dale Hammernik On Saying No and Staying Focused in 2015

Mon, 29 Dec 2014 10:04:00 GMT

Happy New Year, folks! Now that we’re in 2015, the tax planning door has been closed and it’s time to start gathering your documents (well, you can still reduce your tax bill by opening an IRA or contribute to an existing one by April 15th). However, the best thing you can do now to help your 2014 tax bill is to make sure that you have a competent professional by your side as you prepare your 2014 taxes. For business owners especially, with all of the ACA changes coming to fruition, this is definitely not the year to go it alone when it comes to your taxes and books.

And, of course, business calls. And life remains busy. Which is why I’ve been embracing the wonderful art of the “no” … As author Greg McKeown would advise us all: boiling life down to its essentials sometimes means disappointing some people.

But perhaps that is best …

Dale Hammernik On Saying No and Staying Focused in 2015
“Life has no blessing like a prudent friend.” -Euripides

In my observation, this is not unique. Many entrepreneurs struggle with the same problem. It’s hard to say no to good ideas. It’s even harder to say no to great ideas.

But when you neglect to say no, bad things happen. Here are 3 areas which you must be extremely careful to steward right–which means, saying NO.

Your Main Marketing Message
This is something many businesses get wrong. The key to a successful marketing message is to present one clear, concise message that’s easy for prospects to understand. There are so many great benefits to your product or service, but when you don’t say “no” to communicating some of them, the key thing gets lost. The prospect loses and ultimately, you lose.

Nail down ONE great message and then say no to all the great ideas that come.

Your Company Image
This is closely-linked to your marketing message–and, often, can be seen as one and the same. But, for larger businesses, the company image is larger than just their product’s benefits. The “brand” is what I’m referring to here. For smaller companies, this should be less of a concern…but if you have any kind of size, you need to be the one who says “no” to certain things here, too.

To create a lasting brand that is recognizable to prospects and customers, and invokes loyalty, you need to define the brand in clean, simple terms, and then lock it down. If the brand is always shape-shifting, your audience won’t be able to keep up and they’ll give up trying.

Your Core Products or Services
This might be the most important of the three. Whether it’s a product you ship to your customers, or a service that you provide, your product is how you deliver on your marketing message and brand promise. If messaging and branding tend to get disrupted by all the “good” ideas out there, there’s a good chance your product is all over the place as well.

Let’s take the photography industry as an example–but instructive for any business:

A photographer goes into business and defines her particular niche, let’s say black & white baby photography. If she sticks to her guns and focuses on that niche, there’s a good chance she can become an expert in that area and people will come flocking to get baby photos with her.

But, what usually happens is as soon as a slow month passes, she begins to take on work outside of her area of expertise. Someone requests wedding photos and she does it out of desperation. Someone else needs a family portrait. Pretty soon, she’s no longer an expert. She’s an average photographer that has no specialty.

Learn to say no. Your business future will thank you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On Saying No and Staying Focused in 2015 appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Prayer For The Holidays

Mon, 22 Dec 2014 09:03:00 GMT

The roads were a little lighter this morning.

Many of us are still working, but I know of plenty of folks who have already taken time away from work, starting today.

But no rest for the business owners, right?

Whatever your faith background, it’s hard to ignore the holiday clamor. In my opinion, it’s a shame that a season of reflection and prayer (Christmas, Hanukkah, etc) would become transformed into something so… busy . People are rushing around seeking to create nostalgic moments and experiences — and buying them online — without realizing that in the past they just … happened.

Now look — as a proud business owner, I’ve got no problem with people earning (or spending) money during this season. I just wonder when it’s time to say “enough”?

However, as I’ve mentioned, this week, while everyone else is attempting to slow down, we tax professionals are gearing up. The ACA is creating a whole ‘nother level of complexity for the tax return and I pity the taxpayer who chooses this year (of all years) to “go it alone”.

But still, I thought I would take a break from my usual “business and financial” strategy tips, for the holidays, and pause a moment for reflection with you.

Because as I’ve been meeting with tax clients in getting ready for the season, I’ve discovered that many of you are worried and stressed — about finances, family, personal circumstances, etc. It’s not my job to save the world on your behalf of course, but I do appreciate that I get to be somebody in your world that can encourage you to slow down, take a breather and keep your perspective on what’s really important.

Thanks for your friendship, and for your business in 2014, and (hopefully) in 2015!

This week’s post is to help us all keep perspective, this week…and into next year.

Dale Hammernik’s Prayer For The Holidays
“People travel to wonder at the height of the mountains, at the huge waves of the seas, at the long course of the rivers, at the vast compass of the ocean, at the circular motion of the stars, and yet they pass by themselves without wondering.” -St. Augustine

“God, help us remember that the jerk who cut us off in traffic last night is a single mother who worked nine hours that day and is rushing home to cook dinner, help with homework, do the laundry and spend a few precious moments with her children.

“Help us to remember that the pierced, tattooed, disinterested young man who can’t make change correctly is a worried 19-year-old college student, balancing his apprehension over final exams with his fear of not getting his student loans for next semester.

“Remind us, Lord, that the scary-looking bum, begging for money in the same spot every day (who really ought to get a job!) is a slave to addictions that we can only imagine in our worst nightmares …

“Help us to remember that the old couple walking annoyingly slow through the store aisles and blocking our shopping progress are savoring this moment, knowing that, based on the biopsy report she got back last week, this will be the last year that they go shopping together.

“Father, remind us each day that, of all the gifts you give us, the greatest gift is love. It is not enough to share that love with those we hold dear. Open our hearts not to just those who are close to us, but to all humanity. Let us be slow to judge and quick to forgive, show patience, empathy and love. ”

Amen.

Best to you. May your season be truly bright.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s Prayer For The Holidays appeared first on Talking Tax to Milwaukee .

Health Care Tax “Must-Know’s” For Individuals and Businesses

Mon, 15 Dec 2014 09:24:00 GMT

As my team and I have been preparing for this upcoming tax season (which, of course, takes up a significant portion of our time during these holidays), there are a variety of things that are changing for individual tax returns that are due on April 15, 2015.

These are health care tax provisions of the ACA (“Affordable Care Act”), and while most of these relate to individuals, rather than businesses (more about that in a moment), I felt them important to emphasize even to my business owner clients and contacts….

1) Taxpayers will be required to demonstrate that they had health insurance active on January 1, 2014 and have gone no more than three months uninsured in 2014.

2) If taxpayers received a Premium Tax Credit along with their marketplace insurance plan, their income and the size of their household must match up with what was reported during that process. If your income or household size has changed, and you received those credits — PLEASE let a professional help you. (414) 545-1890

3) For businesses: If you have 50 or more FT employees (or a combination of PT/FT equivalent to 50 FT employees) you are required to offer a minimum level of coverage to your staff, or pay a fine.

With all of these things, here’s the bottom line: this is NOT the year to “go it alone” with your tax returns, or with your business’ books. Yes, that is a self-serving statement — and if you don’t use our services, I will be perfectly happy, as long as you are using someone who is good, and who is paying attention as closely as we are.

If you need help or want answers: (414) 545-1890

PLEASE SHARE this information. I don’t need to have the credit, but the information needs to get out there.

(However, I will be addressing more issues related to the ACA and the upcoming tax season in the following weeks and months, so if you are interested in joining my Weekly Notes, you can do so here: http://on.fb.me/1evrfrP )

Speaking of sharing, and getting the word out there … let’s change gears, shall we?

Dale Hammernik On ‘Getting Your Name Out’ — The RIGHT Way
“A business has to be involving, it has to be fun, and it has to exercise your creative instincts.” – Richard Branson

Many small businesses brainlessly ape big corporations with their marketing, by (wrongly) believing that “if these huge companies built their businesses by that kind of marketing, then it surely should work for us.” Build the brand, they say.

The thinking behind that kind of marketing is that you “get your name out there”, and the clients and customers will pour in. “It’s all about word of mouth “, they say.

Well, if you choose to go down this road, far better is real word-of-mouth advertising, and there is a single, basic secret to stimulating a high rate of it. And we can all take a page from the fine folks at Disney….

Word-of-mouth marketing is taught there as “find ways to do what you do so well and so uniquely that your customers cannot resist telling lots of other people about you.” At the Disney Parks, this principle is implemented in the forms of cleanliness and authenticity.

When first-time visitors to Disneyland and Disney World are surveyed and asked what sticks in their mind most about their visit, the overwhelming, number-one answer is the cleanliness of the parks. The number two answer is the authenticity of the environments.

Disney marketing pros understand how this translates into real life. Tom and Sally go back to Peoria and tell their friends, “You can’t believe how clean the parks were.”

Then four more families from Peoria pile into motor homes and bring their family (and their money) to the home of the Mouse.

Because they understand this, the Disney people think of park cleanliness as marketing, not just maintenance. They use this to stimulate referrals.

And any business can also find ways to stimulate referrals, to stimulate word-of-mouth advertising, often by doing things that should be done anyway.

In a retail business, excellence and creativity in the store environment and in customer service are most likely to stimulate referrals. You can identify hundreds of different things to change in the office or store environment, as well as customer communications, which can be directly responsible for developing a very high level of word-of-mouth advertising.

And that will beat “brand-building” every time.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Health Care Tax “Must-Know’s” For Individuals and Businesses appeared first on Talking Tax to Milwaukee .

Creating A Family Business Succession Plan That Works

Mon, 08 Dec 2014 09:48:00 GMT

The year-end is a common time for Waukesha County business owners (like you, perhaps) to take stock of where they’re headed in a few years’ time … and what the plan for the business could and should be without them *in* it.

(It’s also a VERY good time for some last-minute tax planning with Dale Hammernik and team ! Here’s our number for that: (414) 545-1890)

Well, I have a story today for you. A sequel, if you will, to an old Disney classic …

Sadly, Beast died of Feline Infectious Peritonitis the next year.

Five years later, Scurry and Hyde were collecting piles of gold in salary. Their lavish “business” expenses left only a meager profit to be shared with the others. Belle and Caroline struggled to make ends meet on the leftovers.

You see, the moral to THIS family story is this: Dividing *ownership* of a family business is the easy part. Ensuring equitable provisions for the entire family is what’s most difficult.

Dale Hammernik Describes A Succession Plan That Works
“If you ask what is the single most important key to longevity, I would have to say it is avoiding worry, stress and tension. And if you didn’t ask me, I’d still have to say it.” – George F. Burns

Try out these numbers: Only 34% of family businesses successfully pass to the second generation, and only 13% make it to the third generation. Avoiding these problems in your Waukesha County family business is dependent on taking into account family dynamics and the different roles in the family business.

These family business successions are most successful with wisely integrated planning of three roles: family, business and ownership – each of which have different goals and objectives as well as rules of behavior. Behavior that is appropriate or tolerated at home may be inappropriate in the business environment. And while many families avoid discussions where there is disagreement, encouraging the expression of disagreement is critical in the business realm, especially the “family business” realm.

Family Leadership
For most family businesses, the family role is the most important. The emotional issues of unconditional acceptance and equality are both the friction and the glue in many families. Families are naturally inward-focused, seeking to nurture and develop the next generation. This is how it should be.

However, the challenge here is for the older generation to pass on not simply the acumen of the family’s finances, but the strength of the family’s values. Each generation has to be actively raised to the level of “peer” by the actions and attitudes of the generation before them. Beast’s first mistake was failing to provide that type of mentoring for Scurry and Hyde in advance. (Or maybe it was his choice of names!)

Proven family character must be required for leadership in the family business, and a board of directors with at least two outsiders would help keep family values intact. (Mrs. Potts, Lumiere and Cogsworth would be excellent candidates for Belle & Beast’s Board of Directors.)

Business is Business
It’s best to keep a boundary around the realm of the business. For a business to be successful, it has to be able to able to change quickly. Obviously, it has to generate profits, and therefore must be outwardly focused . As a result, family members can’t be treated equally. If one family member works part time, while another chooses to work full time, plus nights and weekends, the monetary incentive needs to be in proportion to the profit each brings into the business.

If a business is passed from one member of the older generation to a single member of the next generation, many issues can be postponed or ignored. But if the business moves from a single owner to a partnership of siblings (and then to a set of cousins who are shareholders), the business must continue to run like a business–while simultaneously dealing with a possible wicked brew of family tension. You need to plan for: leader selection, the role of non-employees, conflict resolution, and the shared control of different family branches.

Further, those actually running the business must also be trained in the financial responsibility of management, preferably before the change of ownership. There will need to be policies for fair dividend distribution for those not employed. Again, it’s a very good idea to delegate certain outside governance by a carefully selected Board of Directors.

Who’s The Boss?
As soon as a family business is divided into shares, there will be those working “in” the business and those who merely own shares in the business. Plans must be made for buy-outs, professionalized management, mentoring, and family council meetings.

Transfer of ownership is the least complex of these three roles for planning, but it won’t achieve your succession goals without a solid family structure AND a healthy business structure in place.

Family businesses are complex, needing to address multiple roles. Wise planning for the Waukesha County area family business accepts, mentors and integrates others (family role); makes a profit and demonstrates objective professionalism in its decisions (business role); and plans for the inevitable – a successful transfer of ownership to the next generation (ownership role).

With this (perhaps disturbing) story, I’ll leave you until next week. Again, if you are operating a family business, make sure you get this straightened out.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Creating A Family Business Succession Plan That Works appeared first on Talking Tax to Milwaukee .

Small Business Owners, Are You Growing Your Business?

Mon, 01 Dec 2014 09:37:00 GMT

How’s business looking, here as we begin the final month of 2014?

Drop me a note, and let me know. I’d love to keep in good touch, and to be a “comrade in arms” for you, as you fight to grow your organization. This last month is a good one to take a look at last-minute moves that can still make a big impact on your tax burdens.

And this week, I’d also like to have the chance to lift your vision about how you conceive of YOUR primary task as a business owner. This is something I’ve picked up along the way which has definitely benefited the growth of our firm.

You see, you have resources that are able to take care of the “details”, while you focus on the marketing and positioning of your business. Because that is, indeed, your primary task as a business OWNER (not to be just a “do-er”).

Read on.

(Oh, and as usual–send your feedback: http://WaukeshaAccounting.com/contact )

Dale Hammernik Asks: How Do You See Your Business?
“Success is the maximum utilization of the ability that you have.” – Zig Ziglar

I’m curious. What drove you to start your own small business? A passion for the product or service you provide? A desire to be your own boss? A chance to dust off some ambition? A drive to stick it to “the man?”

Did you become a small business owner because you enjoy marketing? Probably not. But, if you’re going to continue to grow your business you have to realize this important fact: You are a marketer, not a service or product provider.

Let me quickly show you the difference between a marketer and a service/product provider.

A Service/Product “Provider”:
Has products or services
Talked to prospects
Has customers
Owns a business
Hopes they’ll stay in business

A Marketer:
Sells products/services
Continually talks to a list of prospects
Builds relationships with customers
Grows their business
Is building their business future

So how do you become a marketer? Well, here are a few questions we both should be thinking about…

* Do we know the difference between advertising and marketing?
* Are we building our prospect and customer lists?
* Do our businesses have a marketing “system” in place?

What I’m learning: smart marketing can make the difference between doing “alright”, and skyrocketing your business.

Yes, I’m a tax professional — but you must understand, I’m a business owner too, and these are hard-won lessons.

I want your business (and mine) to grow, and grow FAST — even with this crazy economy.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Small Business Owners, Are You Growing Your Business? appeared first on Talking Tax to Milwaukee .

Thankful for the Journey at Hammernik & Associates

Mon, 24 Nov 2014 09:20:00 GMT

It’s a slower week, here in Hammernik World. And I have some thoughts, which are perhaps a bit more meditative than normal because of how this holiday works for tax professionals.

The December holidays are wonderful, of course — but they are a calm before a big storm (tax season). We’re usually furiously prepping for the season, and seeking to understand the last-minute tax code changes that Congress often foists upon us.

And this year we’re contending with an entirely new layer of complexity by handling insurance reporting requirements on tax returns. Pretty complicated preparations for that are still underway.

Which makes this week a little sweeter. Yes, we’re preparing, but it’s not so … frantic.

So, this week of thanks — I’m beginning by looking back.

And when I do, I’m reminded of my firm’s many blessings. For instance, I do NOT take for granted that you have chosen us to walk with you as we give you advice and help take care of your business, especially around tax time. It’s hard to trust your “baby” (your business) to another, and we don’t take it lightly.

And maybe you can relate to this one: I also look back this week on the journey to get here. As anyone who runs their own business will agree, it’s a giant leap to go out “on your own”. I still remember what it was like to take this dream I had for Hammernik & Associates and put it into reality. I was a little bit scared, but I was hopeful. I remember the friends and other business-owners who helped me along the way … and how risky it all seemed.

Well, the risk DID pay off of course, and I’m happy about what we’ve been able to create around here at Team Hammernik. Now we get to be the ones helping people pursue THEIR dreams.

For a new business owner, the first step seems really big … until the next step comes! And then you realize that running a business is a series of these decisions … you become a good risk-taker, if you stay in it for long.

But it sure helps to have somebody with a cold, clear eye to make sure you know what you’re getting into.

Which brings me to what I’m thankful for this year, as a business owner … and hopefully as your friend.

As I gather at my table with family and friends this season … I am thankful for you — and people like you . Thank you for your trust, for your business year after year … and for making my first step into starting and running a tax firm “way back when” so rewarding now.

And what I’m excited about as we head towards the end of 2014 … well, here’s to helping YOU keep the IRS off your back in 2015!

Looks as if we’re all going to need it …

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Thankful for the Journey at Hammernik & Associates appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 4 Steps to Business Networking Done RIGHT

Mon, 17 Nov 2014 09:08:00 GMT

Before I get to the meat of my article today, I did want to encourage you, as a business owner, to take a good, hard look at your revenue for the year so far, and consider a few tax possibilities before it’s too late.

1) Project your income for the year and estimate your basic tax bill.
2) Defer income if possible. Always a good strategy, unless you’re due extra deductions and credits this year.
3) Accelerate deductible expenses.
4) Consider a 179 Deduction (taking an immediate deduction for CapEx instead of depreciating it). Extender bills in Congress could increase the limit for this from $25K to $500K. Stay tuned.
5) Consider opening retirement accounts.

Those five above are some “quick and dirty” tactics that every business owner should apply before year-end. If you want to get more granular (and in my opinion, you should), let’s get on the horn: (414) 545-1890

Now … I’ve been to my fair share of conferences, seminars, BNI groups, etc. etc. ad infinitum . And I’ve seen “all types” in those settings. You’ve probably met a few of them yourself in your own dealings…

First, there’s the Business Card Bandit — slinging out their contact details like a carnival barker, and always glad to tell you about what they do. Then, of course, there’s the Network Marketing Mavens — eager to have you discover their fantastic business opportunity. The “I’m-Here-Because-I’m-Here-Every-Week” Banker is always a reliable staple. Oh, and let’s not forget the radio salespeople!

Anyway, I’m sure you could add your own little list. But the subject of my post this week is about doing these groups RIGHT.

And, if you’re smart, you’ll also see that this post is not just about networking groups … but that there are hidden marketing gems in it for online and offline marketing as well.

Dale Hammernik’s 4 Steps to Business Networking Done RIGHT
“For our own success to be real, it must contribute to the success of others.” – Eleanor Roosevelt

If you want to succeed in your business, then meeting people who’ve already succeeded before you is going to be a huge help. In fact, this could be the sole difference between success and failure. But how do you network locally and at seminars? Learn from my mistakes… and from my many years of seeing these groups work. Because this “mini crash course” I’ve put together will help you build relationships that’ll help boost your network AND your business.

And, of course, these tips hold true in online networking, as well.

1) Make Friends First
In my experience, this business axiom holds very true: “All things being equal, people prefer to do business with people they like. All things not being equal, people still prefer to do business with people they like.”

If you want someone to share with you their success techniques for building their business, then the first step is to build a friendship with them. Get to know them as human beings and allow them to get to know you. Show a little vulnerability, as well as curiosity and interest towards them.

Once you have a bit of a relationship, THEN talk business.

2) Give First, Before You Take
Perhaps you’ve discovered a marketing or management technique that’s been working really well for you — so don’t horde it for yourself. There has to be some “give” as well as “take” in any kind of business relationship. Share your knowledge and your insights freely, and others will do the same.

3) Take The Next Step: Join a Mastermind Group
Meeting with other like-minded people on a regular basis can really help drive you forward.

There are two important things that happen when you’re around other people like yourself: First of all, you get to share ideas, techniques and stories that’ll help you figure out more ways to be successful.

The other thing that happens is that you start to build off of each other’s momentum. If one person is making more money than the others, everyone else will start making more money. Everyone will start taking more action. The energy begets more energy.

If there isn’t a mastermind group near you, then start your own group. It’s not that hard to find like-minded people near you. Get these people together and ask them to bring people they know. Soon, you’ll have a great group of like-minded individuals.

4) Find a Mentor
If you’re bringing in $20,000 per month to your business, and want to be doing $50,000 a month, then find someone who’s making $100,000 a month.

This relationship can be a paid relationship, a friendship or a mastermind group relationship. Whatever you need to do, just make sure you have someone in your life who’s where you want to be financially. This will have a magnetic effect on your finances. You’ll slowly but surely start making more money.

The bottom line is: WHO you spend time with has a great deal of influence on your success. So make sure you’re networking properly — that you’re spending your time with the right people.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s 4 Steps to Business Networking Done RIGHT appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 5 Marketing Rules for 2015

Mon, 10 Nov 2014 08:53:00 GMT

Have you noticed that traditional styles of advertising are getting more and more stale?

That’s because the internet has torn down so many different barriers that we don’t realize how much has changed, until we take a look at the real numbers . And across many different businesses that friends of mine own, in many different industries, we’re seeing “traditional” ads become increasingly obsolete (i.e., those featuring the name of the business, and a basic listing of the services provided).

So look — I’m not a marketing guru. I come alongside families to prepare them for painful trials, down the road. That said, I’ve learned that there sure are plenty of other accountants out there who would love to take my clients from me.

So I’ve had to learn to stand out a little bit — and the best way, today, is by writing to connect deeply with prospects.

So, I’ve cobbled together some great advice on effective marketing writing, no matter the industry. It’s a difficult subject to attack broadly, but these principles can serve as a useful checklist for you when you sit down to put together your advertisements.

Let me know what you think — and do let me know if there is any way that my staff and I could assist you before year-end.

Dale Hammernik’s 5 Marketing Rules for 2015
“It doesn’t really matter who you used to be, what matters is who you’ve become.” – Robert Tew

There’s a big difference between the stale advertisements of earlier days — and the kind which is working today, in the age of social media and the boundary-free internet. The difference comes down to writing your marketing in such a way as to build a real connection with your clients and prospects. Those of my business owner friends who work to build that real connection do see the difference in their results.

So how do you advertise and write in such a way that actually draws people in and builds connections? Here’s how.

1) Share Yourself
Chances are, you’re not the only person selling what you’re selling, right? But people will listen to what you’re saying, not only because of your content or products, but because they enjoy hearing you share your actual experience.

If you’ve had a specific experience that relates to what you’re talking about, share it. Believe it or not, this can actually have a big impact on people feeling like they can trust you. They’ll feel as though they know you more. The internet has torn down the false wall of impersonality. The pathway to profit lies behind it.

2) “What’s In It For Me?”
The old “WIIFM” question is one you should answer as quickly as you possibly can, in any kind of marketing piece. Marketing content which rambles on and on without being crystal-clear about what the reader is getting does not get read (or acted upon), period.

Not only should your WIIFM be totally clear, but you should put it as early in your content as possible. That way, people will know why they should keep reading as soon as they start reading.

3) Be Conversational
Write like you talk. Don’t use corporate fluff-speak. You’re having a person-to-person conversation — just over the internet, or through a piece of mail.

Use slang. Start your sentences with “and” or “because” if it sounds natural to you. And, most importantly, put your passion and spirit behind your words.

4) Let It Sit
Before you publish or send out your content, let it sit for a day or two. Then, come back and review it one more time before you publish it. Often, the second time around, you’ll pick up on things you didn’t the first time. These could be grammatical mistakes (though these aren’t always a killer), or it could just be more information you can put in that will make your content even better.

5) Show Your Credibility
There are so many people on the internet giving different advice, it’s hard to know who to listen to. Have you helped over 1,000 people solve this specific problem? Make sure they know that. Have you been featured on Fox and CNN? Make sure that’s plastered all over your website. Have you done exactly what you’re teaching, in spades? Make sure they know that.

In short, the questions of “why should I listen to you?” and “why should I trust you?” should be answered before you ask your readers to take your word on something.

Here’s the bottom line: If you write in a way that really connects with your readers, you’ll build more internet traffic, more responses, more loyalty, more referrals and more sales.

Write to connect with your prospects.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s 5 Marketing Rules for 2015 appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Last 2 Keys to Chopping Costs Correctly

Mon, 03 Nov 2014 08:22:00 GMT

Since I make it my practice to put together this missive on Monday mornings, I don’t yet have any commentary about this week’s midterm elections. Once everything settles out, I’m sure I’ll have something to say.

Because there are so many “hidden costs” with all of our everyday decisions (in business AND life) … and I simply can’t turn that part of myself “off” when I look at the decisions made by politicians (nationally AND here locally), and by other businesses.

And of course, there are the very real, not-so-hidden costs which we started talking about last week.

So I’ve put this together, to help you as you consider these decisions — but also as a friendly reminder that I’d love to figure out a way that my firm could come alongside you and your business, and help you eliminate the “hidden costs” of poor planning.

Dale Hammernik’s Last 2 Keys to Chopping Costs Correctly
“If you want to achieve excellence, you can get there today. As of this second, quit doing less-than-excellent work.” – Thomas J. Watson

Last week, you and I discussed how to reduce overhead expenses, as another way to help your business thrive in this economy.

We talked about how one of the most expensive overhead items for almost any business is payroll. So, in this week’s post, I’ll share with you two more ways to reduce the cost of payroll. Here they are:

3) Hire slow, fire fast.
This is a somewhat “tried and true” adage…and it’s that way for the simple reason of its eternal truth.

Please…don’t hold on to people that aren’t contributing to the success of your organization. Firing someone is tough work for any small business owner, but if it’s got to be done, you’ve just got to do it. And do it NOW!

A quick tip: identify some clear benchmarks for a struggling employee to meet. If they continue to NOT meet these guidelines, you’ve got a safe standard to point to, if the firing ever gets dicey.

Now you can avoid poor hiring decisions by simply spending more time in the hiring process. This can be difficult, if you’re feeling the need for more help — but it really does pay off.

Develop an interviewing and screening “system” (i.e.–don’t go with your “gut”) to use when searching for new candidates, and have a few people in your company interview the candidate. Avoid “open-ended” questions, and ask your candidate to specifically identify successes and failures from their past.

4) Start by establishing clear deliverables and deadlines with every employee.
Then, set aside time on your calendar to “inspect what you expect”. As I’ve mentioned before, don’t just “assume” that because you assigned a project to an employee, it will get done satisfactorily! (You know what happens when you “assume”.)

Take time to inspect the results and to give constructive feedback to your employee. It’ll be a great way for both of you to make sure that your business is running on all cylinders.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s Last 2 Keys to Chopping Costs Correctly appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s First 2 Keys to Chopping Costs Correctly

Mon, 27 Oct 2014 08:09:00 GMT

I wanted to write you this week on a subject near and dear to my financial heart: profit.

Now, I’ve been spending a lot of time with you over the past few months on increasing the revenue side of the profit equation, but I thought I might take a few weeks to touch on the expense side of the coin.

Because in this environment, it’s a key factor for success (i.e., that you pay close attention to it).

Having worked with entrepreneurs and business owners for a while, I know that most of them don’t like having to pay attention to that side of the ledger. The “sales” side is much sexier.

But at the end of the day, it really is about profit … right?

So, this week’s blog post will directly help you keep those costs down.

Dale Hammernik’s First 2 Keys to Chopping Costs Correctly
“Either do it or don’t do it. No more wishy-washy, half-hearted attempts. Either say ‘no’ to achievement or dig in and get to the bottom of the persistent incongruence between what you say and what you do.” – Dan Kennedy

It’s a common (and normal) temptation for the biz owner: Make some additional sales and revenue, and let expenses (that were perhaps too high in leaner times) creep back in. Some folks even do this as a way of signaling to themselves that they’re doing better … a sign of prosperity, if you will.

Well, I hate to be the bearer of bad news — but you’ve gotta stay moored to reality. Cutting that overhead NOW, when things are better, is much healthier … and one of the easiest paths to profit.

And what’s often the highest piece of overhead? Payroll.

So, I’ll take some time this week (and next) to suggest some easy, painless ways to keep that major cost under control.

1) Re-work compensation to link to specific goals.
We’re used to seeing salespeople compensated on a performance basis, but the important thing to realize is that ALL of your employees could go on such a compensation system. What are the production goals for your non-revenue employees?

A simple idea would be to SET these production-related goals, and somehow have them reported back to your employees on a daily or weekly basis. By seeing and tracking their own results, they become invested in increasing their performance (if they’re at all competitive and have a drive).

Plus, just the simple fact that they know somebody’s watching will increase efficiency.

Yes, it may cost some money (and time) on the front-end to implement this kind of system (which is best when mostly automated) … but it will be WELL worth it in the long run.

2) Never stop training.
Usually poor employee performance is NOT deliberate sabotage — it’s simply not enough time spent in training.

Often employers assume new employees know how to perform their job functions and, therefore, don’t do enough to continually orient them to their job.

Have you conducted a review of your employee performance … and asked THEM for feedback on how they could do better?

That’s a great training opportunity — and again, a nice way to keep them from seeing their job as a paycheck, but rather as directly contributing to the profitability of your enterprise.

A side-benefit: When you cross-train employees across each other’s responsibilities, it can also signal to them (positively) that they’re not as “essential” as they might think they are. They’ll work a little more productively to continually earn that regular paycheck, when they know that being replaced wouldn’t kill the business.

Next week, I’ll share with you a few more ideas for how you can reduce these and other costs — and increase your profits.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s First 2 Keys to Chopping Costs Correctly appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s BIG IDEA: Testing Our Marketing Hypotheses

Mon, 20 Oct 2014 08:47:00 GMT

So, just to recap, the reason I take the time to write you these personal notes each week is that I firmly believe that every good relationship is built on value.

That goes for my clients (for whom, I hope these posts can provide significant value, outside of the financial and recordkeeping work we do on your behalf), those who are still “looking” (for whom I hope these posts give a flavor for the kind of people you may deal with), and for my business owner associates in Waukesha County and nationally (for whom I provide these as encouragement).

Bottom line: I like to help my business-owner friends do very well in the midst of all the national (and international) gyrations we’re facing.

Which is why it’s NEVER a bad idea to reach for the tried and true. In this case, I’m referring to a gentleman by the name of Claude Hopkins, best known for his work, Scientific Advertising .

You know me–I parse language and numbers for my clients. Which is why I gravitate toward accurate, and tested approaches, like Mr. Hopkins’. He’s a bit of a classic among those who study marketing (and his famous work was published almost 100 years ago).

But if you like what you read, at the bottom of this post, I’ve got a link to where you can get yourself an online version of his classic text. Enjoy…

Dale Hammernik’s BIG IDEA: Testing Our Marketing Hypotheses
“The naked truth is always better than the best-dressed lie.” – Ann Landers

You’ll wonder where the yellow went when you brush your teeth with Pepsodent.

Yikes. That jingle is so old, it scares me that I know it. Pepsodent used to be the 800-pound gorilla of toothpaste. In 1927, Pepsodent was sold in 52 countries and advertised in 17 different languages. And yet, it was less than 100 years ago that toothpaste was considered a frivolous item … almost impossible to sell.

Claude Hopkins was one of those who “cracked the code” on toothpaste sales. And he “scientifically stumbled” across the marketing formula that made him a million dollars. (Before 1925!)

To his shock – as a seasoned 30-year veteran and master of direct response marketing – much of his winning marketing formula ran counter to everything he had previously learned. (For example, he was shocked to learn that the word “free” reduced response to toothpaste sales. This remains the only case where I have ever seen that to be true.)

The wisdom he passed on from his Pepsodent experience? “What is the lesson? It is that none of us can afford to rely on judgment or experience … After this experience, I can cite a hundred ways to advertise a tooth paste wrongly. Pepsodent offers the best argument I know for being guided by actual data.”

What kind of actual data? Every ad, measured. Every lead, measured. Every sale, measured.

Of course, you should always start out with what we “know” to be true. But the breakthroughs come from accurate and scientific testing, testing, testing.

For more of Mr. Hopkins, and a book that you should very much check out, go here:
http://scientificadvertising.blogspot.com/

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik’s BIG IDEA: Testing Our Marketing Hypotheses appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals The One Asset That Keeps Performing — When Managed Right

Mon, 13 Oct 2014 08:37:00 GMT

Look — I’m a tax professional, and being such, I am NOT one who likes shortcuts.

That said, I’m continually amazed in talking with my business owner friends and clients in the Waukesha County area who miss this major “shortcut” to increasing sales in their business. So, I’d like to take the time to remind you of it this week, if you’ll let me.

And, as I’ve mentioned before — I truly want to help you grow your business, even though there may be no *direct* benefit for me in doing so. Simply put, I’m hoping that as I can add some value to your thinking (as it relates to marketing and managing your business), there will be other ways that we can help you in the future.

And, of course, we always welcome your referrals for our services.

But without further ado, here are my thoughts on a seriously under-utilized tactic for increasing sales, even in the midst of an uncertain economy …

Dale Hammernik Reveals The One Asset That Keeps Performing — When Managed Right
Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals. -Jim Rohn

This tactic seems so obvious, but, unfortunately, it’s only used by my smartest business owner friends. It’s a recipe for doubling your sales–would you like that? How about doing it without spending any extra advertising money or getting even one new customer or client?

The vast majority of businesses in the world tend to invest most — if not all — of their time seeking out new ways to generate new sales via the acquisition of new customers.

They — incorrectly — assume their businesses can only grow and prosper as they add new, paying customers to their lists.

Only problem is, this can be very expensive.

Running ads which may or may not work, for example, is risky for even the best marketers in the game. Which is why, the key to quick and predictable new profits is not acquiring new customers … but servicing and developing the ones you already have.

Frankly, if you want to at least DOUBLE your sales — without adding a single new customer — then simply focus on superior customer service and repeatedly selling to your existing customer database regularly.

I know that sounds almost “too easy.”

But it’s one of the big “secrets” of marketers who rake in millions and millions of dollars per year. And, by the way, I’m not talking about selling them the SAME thing, but rather identifying other, similar products or services (even if they’re not your own), presenting them to your list in a non-intrusive way … and watching the sales continue.

You see, business insurance can replace most other assets, but the only insurance against loss of customers is exceptional service.

That’s the most profitable business “technique” you can learn.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals The One Asset That Keeps Performing — When Managed Right appeared first on Talking Tax to Milwaukee .

Dale Hammernik On Selling Apples

Mon, 06 Oct 2014 08:38:00 GMT

Last week, I indulged myself in a bit of a big-picture treatise about the current regulatory environment. But as you probably know, that’s not my normal fare.

I make it my goal in these weekly notes to pass along information which has proven useful to our firm and our successful clients. I do this because we want to be a partner with you in helping you grow your business.

We’re not marketing “gurus” around here, but we do hope to demonstrate our good will by passing along business-building information we come across.

And, of course, we’re always open to helping business owners in the Waukesha County area (and beyond) in a variety of ways, be they financial, bookkeeping, or otherwise. Let us know how we can be of service to you: (414) 545-1890

Oh, and an IMPORTANT TAX NOTE:
Personal and pass-through entity returns that were extended back in “tax season” are due WEDNESDAY, October 15th.

That means that if you’re someone we’ve been working with on an extension, and we are waiting on something from you … well, this week would be a marvelous time to send it our way! And, of course, here in the Hammernik & Associates office we’re working like bees in a garden to get all of our extended clients finished with the excellence to which you’re accustomed.

Anyway, I’ve got a little anecdote here, which is useful to model when it comes to how you present your products and services.

This week’s blog post is designed to push your thinking OUT of the conventional way you may be presenting your business offerings. In fact, it’s something I’m always looking to improve in my own processes, but which I know works.

Dale Hammernik On Selling Apples
“Go as far as you can see: when you get there, you’ll be able to see further.” – Zig Ziglar

Here’s an instructive story for you to consider…

A young man, serving in the army, was assigned KP duty. Specifically, he was responsible for the apples in the chow line. Now, most of the soldiers didn’t care for the apples, and generally passed this young man without taking any.

After a while, the young man changed his serving tactic. Rather than ask his fellow soldiers if they “would like any apples,” he simply said, “One apple or two?”

Most of the soldiers then went away with at least one apple on their plate.

How many times do you give your prospects/customers a chance to “slip” away without a sell? Is the way you sell to your customers making the most of your products/services?

Sometimes, prospects and customers simply need a push in the right direction.
• Always speak about your products/services with enthusiasm.
• Assume your prospect/customer wants/needs what you have to offer.
• Use encouraging words and phrases such as “when you buy this product” versus “if you buy this product.”
• Ask for the sale! Later… ask again!
• And when you DO ask, present it in a “Yes/Yes” format, instead of “Yes/No.”

Follow these tips and you’ll be surprised at the number of customers that walk away with your products and services.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On Selling Apples appeared first on Talking Tax to Milwaukee .

Dale Hammernik Examines A Crippling Regulatory Environment For Biz

Mon, 29 Sep 2014 08:30:00 GMT

As we move into the final quarter of 2014, I’ve had some thoughts brewing that I believe need to be said. It’s about a problem that has occasionally plagued various clients of mine, and it speaks to a broader issue.

If there are any legislators who read my blog, please pay attention.

As a business owner, I normally write about marketing tips and strategy, but I also care a great deal about the broader marketplace, as you know. (I wrote about recent credit card legislation as well–mostly as an opportunity to have us all THINK BIGGER.)

So, this isn’t marketing advice per se … but rather a plea for sanity.

Would love your thoughts…

Dale Hammernik Examines A Crippling Regulatory Environment For Biz
“The greater the obstacle, the more glory in overcoming it.” – Moliere

Now, as far as I know, I don’t have any government regulators subscribed to my blog … but this just needs to be said.

You see, lawmakers and the media seem to have dubbed greed as the primary evil responsible for the struggles within the American economy. Insurance companies are routinely accused of greed, as are credit card companies and networks, investment banks, CEOs and so on. As income gaps seem to be widening, and our economy sputters along, our federal policy makers seem quite eager to put checks on “greed” in order to help “fix” the economy.

However, the truth is that in a capitalist economy, profits aren’t a sign of greed, they are simply a sign that a given company’s business tactics are successful within the competitive system in which that company operates.

If lawmakers think that specific companies are making too much money, then the problem isn’t corporate greed, it’s that there simply isn’t enough competition to keep those players from making excessive profits. The President and Congress were determined to use their legislative powers to bail out the U.S. economy a few years back, but they ought to be concentrating their efforts not on greed, but instead on the lack of competition in the marketplace.

Instead, lawmakers have been continuously critiquing the profits of large companies, like those in the health insurance and credit card industries, attributing their successes to greed and greed alone. The business practices of these companies are then regulated by numerous redundant agencies, creating enormous and costly bureaucracies that bog down the system and drive up prices.

In addition, they also create a system in which small companies cannot afford to compete with larger companies, and where companies operating within a single state are hampered by the regulatory costs and procedures that are associated with going national.

What we need is legislation that will increase competition; not laws that prevent competitors from entering into the market. Obviously, excessive regulation does not engender a spirit of competition. If competition as a regulating force were embraced with greater fervor, the system would begin to correct itself — capitalism requires competition, and when it is regulated from outside rather than from within, it begins to resemble something else.

The underlying cause, which has fed the media’s and Capitol Hill’s perception of companies being greedy, is a capitalist economy that has been operating without the competition that is needed to curb excesses. The capitalist marketplace offers rewards to businesses that have successful plans — this isn’t greed, it’s just the nature of the system. And creating a government “gorilla” to squeeze out private industry competition won’t fix things.

The regulatory force that keeps those rewards in check is *real* competition and so it is to competition, and not to competition-defeating regulation, that lawmakers should turn, to get the system back under control.

#EndRant

Look — I want to finish with this: the reason I care about these issues is because I work “in the trenches” with small business owners on a daily basis. Perhaps, like yours. We are looking at the financials, consulting and advising on a host of issues, and we are often the business owner’s closest confidant.

I want to see my friends THRIVE.

So, thanks for reading, and for our relationship. May it ever prosper.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-189
Hammernik & Associates

The post Dale Hammernik Examines A Crippling Regulatory Environment For Biz appeared first on Talking Tax to Milwaukee .

Dale Hammernik On Why Your Waukesha County Business Needs A Bias For Sales In Unexpected Places

Mon, 22 Sep 2014 08:43:00 GMT

How are things going for you in your business? Is there anything we can help you with, as we round the corner into the final quarter of 2014? Do let me know.

We’re pretty busy around here right now, but I wanted to take a moment and help you address a problem becoming more and more common these days: collections. It’s a problem which SHOULD prompt creative solutions — instead of the “same old, same old”.

So, read on…and let me know if you have thoughts of your own on this…

Dale Hammernik On Why Your Waukesha County Business Needs A Bias For Sales In Unexpected Places
“You will never find time for anything. If you want the time, you must make it.” – Charles Buxton

Especially in our current environment, many different types of businesses are suffering from accumulated “past due” receivables.

And it’s a problem which shouldn’t *just* be addressed by “normal means” (calling, pestering, etc.).

However, you can actually change the way the game normally works. How? Well, I suggest that you use tactics similar to those which WON you the sale in the first place: discounts, premiums for advance or prompt payments, and good old multi-step follow-up.

If you do have (or ever develop) a receivables problem, you’ll need to take this same sort of aggressive action to clean it up. “Preserving the relationship” with a client who can’t (or won’t–more likely) pay his bills is of little value. And, left alone, collection problems tend to get worse, not better.

Even large, long-established corporations can find themselves in trouble with their payables. In that situation, you as a creditor could wait years for your money and then recover only a percentage of it. So it’s important that you set into place a *system* for getting this done.

Because one of the most important lessons that I’ve learned over my years in business is that trends rarely reverse themselves . Trends don’t just change; people change trends. Waiting, procrastinating, delaying action on a negative situation simply means it won’t change — at least, not likely for the better.

When you get that very first glimmer of something “not right” in your business, that’s the time to look closer and to take corrective action. Too many people spot the tip of a problem and choose to ignore it, feeling they’ve got enough to handle already, so why go looking for trouble?

It’s a funny thing how closely-related failure and success are, and how failure is usually the womb of a subsequent success. And, how most business problems have marketing-related solutions. To be very simplistic, effective salesmanship solves most problems–including collections.

You need a bias for sales in every area of your business — even collections.

So, turn your marketing mind onto it. What incentives can you provide to delinquent customers? How can you “cut through the clutter” so that YOU get paid (while other vendors wait … and wait)? Good headlines, conversational appeals, and multi-step follow-ups is a good place to start. And “starting” on this issue is the biggest step.

Your bottom line will thank you, if you take the action.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik On Why Your Waukesha County Business Needs A Bias For Sales In Unexpected Places appeared first on Talking Tax to Milwaukee .

Dale Hammernik Challenges Your Small Fee Thinking

Mon, 15 Sep 2014 08:32:00 GMT

Do you accept credit cards in your business? If not … why not?

Obviously, it’s a matter of some debate for certain merchants, but I’m here to tell you: if you are NOT, then you could be running a big risk. Whatever your opinions about the over-availability of credit (and as a general supporter of the debt-free lifestyle, I completely get those concerns), the fact remains that as a business owner you must make your best *business* decision on this subject.

Here’s where I may be getting a little blunt: neglecting to accept credit cards as a form of payment is a short-sighted, and tight-fisted perspective which is robbing your business of a slew of potential customers.

(Ouch, that was a bit blunt.)

Now, that said — I’ve got some further thoughts on some legislation that was implemented last year, and am taking a stab at giving you some unvarnished “straight talk” perspective.

Would love to hear YOUR perspective too.

I know this is a subject which might cause you to think, “Why is Dale Hammernik even weighing in on this?”, but I mostly want to focus on the “small thinking” in this issue. Because it may be a reflection of other poverty-driven thinking in your business.

Here’s what I mean…

Dale Hammernik Challenges Your Small Fee Thinking
“Thinking will not overcome fear, but action will.” – W Clement Stone

The stats are continuing to rise: most Americans, in their personal AND business life, most often use credit cards for purchases.

As a business owner, you are no doubt aware that behind the scenes, when you swipe your credit or debit card through the machine, the merchant pays a small fee to their bank (i.e., interchange fee) for the ability to accept credit card transactions. Let us be blunt about this: if the business wants your money, then they would be smart to pay these fees because cash transactions are becoming rarer with each passing day. ‘Cash only’ businesses are becoming a thing of the past.

However, some merchants became miffed that they had to pay these fees, and they recently went to Congress to fix it. Bills went through Congress that allowed merchants to enter into collective bargaining with the banks, and made it easier for merchants to steer customers to other forms of payments (by including a surcharge for cc transactions) and let them set minimum and maximum amounts for credit card purchases.

My big question is: why did they do this?

An association of merchants, or an association of banks, is a powerful special interest group in this country. So much so, that when they weren’t happy with how things were going, they could ask Congress to pass laws to fix things, and they could do this regardless of whether or not these issues were deserving of national attention.

The problem is two-fold: The merchants can fix the problem themselves (by offering incentives for using cash, etc. — but STILL providing cc options), but they demand that Congress step in. And the merchants shouldn’t be able to find support for this issue in Congress, but they can, and easily.

And to my business-owner colleagues–stop worrying about ticky-tack fees, and START focusing on what you CAN change–the bottom-line results driven by effective sales and marketing.

Opinions about legislation aside (and there may well be good reasons for why this legislation was passed, on which I don’t yet have a clear grasp) … the main point is that when you, as a business owner, spend time and focus on these sorts of “two percent” bumps and NOT on more powerful ways to add revenue and growth to your business, your thinking is too small.

Instead of banding together for or against ticky-tack fees, let’s together, as local Waukesha County business owners, instead band together to make our businesses more effective, more profitable, and more attractive to consumers and clients so that we are paid what we are really worth.

That’s something we should ALL put our focus towards.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Challenges Your Small Fee Thinking appeared first on Talking Tax to Milwaukee .

Dale Hammernik Discusses The Wrong Way To Start or Turn Around a Business

Mon, 08 Sep 2014 08:29:00 GMT

I have too many friends who start a business, or seek to turn around a flailing one, and use this principle as a guiding light.

May it ever be stricken from your consciousness.

But before I remind you of what I KNOW you surely know … here are a few other things you surely know, but also perhaps need a reminder for … (like a good blog post, this is your friendly reminder):

1) Monday, September 15th is the estimated tax payment deadline for the third quarter. Our existing clients were given coupons to make it easy (albeit never fun), so let us know if you need any quick input there…

2) Corporate extensions are also due that Monday. This really only applies to you if we handle your S- or C-corp returns (which, of course, we do for a number of our business clients in the Waukesha County area). We’re on top of this on your behalf, if that’s you.

And now, for my primary friendly reminder of the week …

Dale Hammernik Discusses The Wrong Way To Start or Turn Around a Business
“There is no victory at bargain basement prices.” – Dwight Eisenhower

I discuss this all the time with my business owner clients — how to price their services. You see, often, we might hear consumers say, “Well, I would buy it if it were in my price range.” And, that idea tempts many business owners to lower their prices–just to sell more products.

However, as you already know, price reductions sometimes create more problems than they solve.

For example, price reductions…

* Decrease net profits
* Lead to the purchase of lower-quality products
* Increase customer demands to drop the price even lower!
* Require even more sales to make up the difference in revenue
* Need a larger quantity of products

And, in the end, as John Jantsch (author of Duct Tape Marketing ) says, “There will always be someone willing to go out of business faster than you.”

Remember this: price is not a benefit. The close of a sale is not determined on the cost of your product. If you truly “sell” your customers and prospects, they will purchase your products/services no matter what price you determine.

That’s the plain truth–and you’ve probably seen it in your own purchase patterns.

If a customer or prospect doesn’t buy–and they claim the cost had something to do with it–you can guess they probably wouldn’t have purchased anyway.

As a small business owner, and marketer, your job is to sell your products and services. But the actual art of selling has nothing to do with the price of the product.

By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.

Set your prices and hold fast. If you’ve marketed correctly, you will still have customers anxious to do business with you.

Price gouging is a horrible thing — but, really, that’s a bogeyman that lives more in our heads than in real life.

Charge your worth. You deserve it.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Discusses The Wrong Way To Start or Turn Around a Business appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals How to Catch Your Prospect in 8 Seconds (or Less)

Mon, 01 Sep 2014 08:28:00 GMT

In the midst of all of this world chaos, hopefully, you’re still recognizing the need to market your services aggressively.

The best way we in the Waukesha County area can be “prepared” for whatever comes is having a healthy, cashflowing business.

But consumers and buyers are affected by everything around us, and despite the recent rash of ice-bucket-induced generosity (which is WONDERFUL, in my opinion), they’re still holding onto their purse strings pretty tightly these days…

So it will take good work to get them to make purchases and for you to make more sales.

What I’ve learned from my marketing friends: it all starts with you how begin.

The headline. (You do have those in your marketing, yes?)

So… I’ve collected some tips on writing great headlines, and it’s the subject of this week’s Business Strategy Note.

Before we go there, pardon me for a brief, tax-related interruption :
1) Corporate taxes on extension are due 9/15. We should have already corresponded about this if it affects you.

2) Quarterly tax payments also due on 9/15. I know, ugh.

3) Prepare for the upcoming tax season, by making sure you will have these documents ready:

• Gross receipts : Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
• Proof of purchases : Canceled checks, cash register tape receipts, credit card sales slips and invoices
• Expense documents : Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
• Documents to verify your assets : Purchase and sales invoices, real estate closing statements and canceled checks

Now, onto those headlines…

Dale Hammernik Reveals How to Catch Your Prospect in 8 Seconds (or Less)
“The creation of a thousand forests is in one acorn.” – Ralph Waldo Emerson

Here’s the truth: most readers or listeners take 8 seconds or less to decide whether to stick around or move on to the next thing. Just 8 seconds — that’s all the time you have to convince them YOUR piece is where they want to stay for a bit.

It doesn’t matter how well-designed your marketing piece is… or how amazing your product.

If you don’t GRAB your prospect’s attention right away, they’re going to leave and probably never return.

Of all the words in your piece, the most important are the ones in your HEADLINE.

Your headline is the first thing your prospects see or hear (I hope you see that this applies to items outside of print marketing as well). It needs to capture their attention — spark their curiosity– and compel them to engage further. And it has to do it fast.

So I’ve collected three keys to great headlines…which will help you make more sales. Again, I don’t pretend to be a guru . These are suggestions which I’ve pulled together from some of the best marketing minds out there.

Rule #1: RELATE A PROBLEM
Most prospects, especially if you target them properly, are looking for information — probably in relation to a problem they want to solve.

Maybe they’re curious about local flight schools in their area. Maybe they’re wanting molded chrome fenders to put on a 1953 Chevy Bel-Air. Or maybe they’re trying to figure out how to “unshrink” wool clothes that accidentally ended up in the dryer.

Whatever their problem is, relate to it. Show them YOU know what it’s all about. Demonstrate a clear and genuine understanding of their wants and needs — and they’ll be far more willing to buy from you.

Rule #2: PRESENT A SOLUTION
You’ve described a problem. Now you’ve got to solve it — in a way that creates a powerful image in the mind of your prospects.

Tell your prospects they’re about to discover how to get the most qualified flight instructors at the lowest price in town. Describe how their new chrome fenders will help them outshine the competition at the next state-wide car show. Promise them their wife or girlfriend will NEVER know her favorite sweater once shrank small enough to fit a chihuahua.

Get them to envision the end result — and you’re more than halfway to making the sale.

(NOTE: “How to…” and “Discover…” headlines are good at getting people to imagine the end result.)

Rule #3: FOCUS ON BENEFITS — NOT FEATURES
People aren’t so interested in what your product or service is. They want to know what it does.

Specifically, they want to know what it’ll do for THEM.

Tell them they’ll get the real “inside scoop” on the flight school scene — because they’ll be learning it from someone who’s been a pilot in the area for more than 30 years. (Provided that’s true, of course.)

Have them imagine the honks, smiles, and admiring glances their car will get every time they drive it down the road. Describe the relief they’ll feel when they know they’re back in their wife or girlfriend’s good books.

Remember the most important question that’s on all of your prospect’s minds — “What’s in it for ME?” — and make sure you answer it.

Once you’ve written a few different headlines, TEST THEM. Run them for a couple of weeks, then compare the results against other headlines. Then, tweak them and test them again!

You may have to do this a few times before you hit on one that consistently yields great results — but it’s definitely worth the effort.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals How to Catch Your Prospect in 8 Seconds (or Less) appeared first on Talking Tax to Milwaukee .

Killer Momentum

Mon, 25 Aug 2014 08:29:00 GMT

So here we are, finding ourselves about to begin a beautiful Waukesha County fall…

Isn’t it amazing how quickly time has flown by in 2014? Soon we’ll be halfway through this century’s second decade. And I still remember holding my breath at Y2K! Crazy.

There’s a reason for my mini-meditation, today, on time and its passage. You see, it’s SO easy to let it all flow by … and to not take a good hard look at doing things differently in your business.

Every week, I do my best to give you a quick “shot in the arm” for your business, and break you out of the routine. Honestly, I have such a great time putting together these notes for business owners, because I love thinking about my friends and clients putting good advice into practice to actually grow their business.

But sometimes momentum is a killer.

I share a little story for you which demonstrates my point, for this week’s blog post, and a few comments to pull it all together.

Read on, and send me your feedback.

Killer Momentum
“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” – Peter F Drucker

When I meet with business owner clients or friends in the Waukesha County area, I discover that many of them have a method of how they run their business … and they haven’t deviated from it for years.

Well, I remember an exchange from a plane, which got me to thinking about this phenomenon … and what it means for your business.

As the plane was being boarded, the flight attendant was passing through the cabin asking passengers what they wanted to drink before takeoff. “I’ll have a Diet Pepsi,” said one person. “A double vodka for me, please,” said another passenger … and it wasn’t even lunch time yet.

When the flight attendant reached a kind-looking matron, she asked for an iced tea. An interesting exchange followed:

Flight Attendant: I’m sorry, we don’t have any iced tea.
Passenger: Do you have hot tea?
Flight Attendant: Yes…
Passenger: Do you have ice?
Flight Attendant: Yes…
Passenger: Do you have sugar and lemon?
Flight Attendant: Uh, yes…
Passenger: Then forget the iced tea; just give me a cup of hot tea and add some ice, sugar, and lemon, please.

At that point, everyone who had heard the conversation, including the flight attendant, began to laugh. Everyone’s concept of iced tea was of a drink already prepared and packaged in a can or bottle. Only the passenger (who had obviously had this conversation many times before), had the concept of iced tea as a mixture of ingredients which were all readily available on the plane.

How many times, when faced with difficult or challenging situations, do we focus on the reasons we can’t do something instead of identifying ways in which we can?

Many business owners get stuck in auto-pilot, closing their minds to new ways of doing things because they simply don’t have the context.

So, here’s my suggestion for you this week: take a fresh look at your 1) marketing, 2) management procedures, and 3) sales steps. Try to see new ways of accomplishing similar goals, test them out … and perhaps watch your profits soar once more.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Killer Momentum appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals 3 Significant Marketing Mistakes (Part 3 of 3)

Mon, 18 Aug 2014 08:43:00 GMT

An honest question for you: how’s business, as we wrap up the summer?

Is there anything I can do to help you this week? I obviously take pleasure in helping my clients and business owner friends thrive during this craziness in our culture and economy, and my weekly Notes are just one way I’m happy to help.

But I hope you know that there’s probably other ways in which we could come alongside you and your business. From cash control analysis, to taking financial tracking off your plate, to tax planning and other consultations — Hammernik & Associates is here for you.

Give me a call ((414) 545-1890), or send me an email … we are in your corner.

So, in this week’s Strategy Note, I’m wrapping up my three-part series on sales and advertising blunders to avoid. From the many notes I’ve received, I know this has been useful. I’m truly glad to be of service.

Read on, and send me your feedback.

Dale Hammernik Reveals 3 Significant Marketing Mistakes (Part 3 of 3)
“One thing is sure. We have to do something. We have to do the best we know how at the moment… If it doesn’t turn out right, we can modify it as we go along.” -Franklin D. Roosevelt

The last two weeks, I’ve written about how many small businesses in the Waukesha County area shoot themselves in the foot by failing to improve their advertising and sales processes. So far, I’ve given you FIVE blunders to avoid:

1. Failure to tell your story.
2. Right product, wrong market?
3. Right market, wrong problem?
4. Right problem, wrong pitch or promise?
5. Right pitch, wrong timing?

So, let’s keep plugging those holes for you, shall we? Here’s the final installment.

6. No urgency.
In most cases, of course, it’s just common courtesy not to rush people. But that’s a courtesy you can’t afford when you’re trying to close a sale. Why? Because of the salesperson and marketer’s greatest enemy… inertia.

If you can’t give your prospect a push to “act now,” you’re only inviting him to shelve the offer until later. Translation: never. It’s not a question of politeness, it’s a question of sales and marketing survival.

Go back and look more closely at your sales piece or script. Start with the offer and work backward. Is there a deadline for any special deal you’re offering? Is there a bonus for a speedy reply?

If you can work it into the deal, do so. But then move back through your piece and find places you can repeat or highlight the deadline date. Make it as specific as possible. Midnight on a certain date, just weeks from your mailing. Or maybe a website countdown. Or limited number of orders allowed.

If there’s one thing that drives people more than the promise of getting something, it’s the fear of missing out. In short, if there’s no urgency, find some. And make sure you build that tension, the closer you take your prospect to the point of the sale itself.

7. Failure to offer proof
As much as we may consider ourselves thoroughly rational creatures (and I say this as a “numbers person”!), no sale is ever made based on logic alone. The way to get attention and action is with emotion.

(Some people shy away from using emotion, and that’s quite understandable – because it’s often perceived as “manipulative”. My simple contention here is that if we don’t speak in the language of emotion, then we’re not truly speaking the real language of life.)

That said, once you’ve engaged a prospect emotionally, you’ve got to give him or her a reason to believe. You’ll want to work into your script or sales piece a way for your prospective client to go back and rationalize the smart decision they made to use your product or service.

Credibility-building charts and statistics, relevant stories, strong testimonials, track record, expert testimony, reassuring credentials … they all add up to support the prospect’s original emotional commitment.

If you are already using these elements, I suggest you go back and make sure your proofs are clear and easy to read. If you’ve got testimonials, make sure they’re as naturally presented as possible. Don’t use stock photos. Use pictures of the real customer. If you can use full names, do. If you’ve got experts who recommend your product, mention them.

If you’re reading third-party sources that support your claims, name them. And use quotes just long enough to show that the credible experts agree. Don’t just say your results are great. Show what happens when you get great results. Thinner customers. A nicer car. A bank statement. A healthy, happy couple. And so on.

Anything to put an image into the imaginations of your future customers.

8. Failure to close
This is the last one, and it’s a biggie.

Zig Ziglar famously said, “Timid salespeople have skinny kids.” And once you’ve gone through your sales process, written a fantastic sales piece or advertisement, you MUST seal the deal with an actual “ask” and a clear call to action–stating *exactly* what your prospective customer should do right now.

Without this final step, all your good efforts go to waste!

Again, I don’t pretend to be a “guru” … I just see what works, and I pass it on.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals 3 Significant Marketing Mistakes (Part 3 of 3) appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals 2 More Advertising Mistakes

Mon, 11 Aug 2014 08:09:00 GMT

I’ve come to realize that WE are our own worst enemy, when it comes to running our businesses … not external factors, not market forces. It comes down to looking in the mirror, and taking responsibility for the results we’re currently experiencing.

So, if things are down right now: don’t blame anyone but yourself. This doesn’t mean self-flagellation, but instead that seeing things in this light really is the first step to getting OUT of it — because you finally begin to focus on things WITHIN your control, instead of outside of it. And it’s really quite liberating.

Conversely, if things are GOOD: don’t abandon what got you there in the first place and coast, as if just by showing up, the magic happens. That just isn’t the case, and you know it.

Last week, I wrote about some common advertising mistakes I see … and, well, I think it touched some familiar nerves. But allow me to remind you — being challenged in your thinking is a GOOD thing!

(And, of course, if you want a guide for walking you through this murky tax landscape, I have just a few open tax-planning sessions remaining.

But I urge you to move quickly, as I’ve opened these sessions to my non-business clients as well, and they’re going quickly. Send me a quick email, or call: (414) 545-1890 to grab one.)

On to your better marketing …

Dale Hammernik Reveals 2 More Advertising Mistakes
“You may be disappointed if you fail, but you are doomed if you don’t try.” – Beverly Sills

Whether you create most of your sales through referrals, through direct marketing, or with a dedicated sales force–there’s some quite common mistakes I’ve seen which are destined to suck the life out of your sales process.

Last week, I posted the first three. If you didn’t get a chance to read it, or deleted it by mistake, send me a note, and we’ll get it to you.

Here they were:

1. Failure To Tell Your Story
2. Right product, wrong market?
3. Right market, wrong problem?

As we head into summer (a typically “slow” season for many businesses), it’s the perfect time to evaluate your marketing processes…and plug the holes.

So, here’s the next installment.

4. Right problem, wrong pitch or promise?
Emotionally, you’re right in line with your target audience. Yet still they don’t call your office, act on your sales pitch or otherwise respond. Not to worry, because knowing how your customers think is already half the battle. But now you need to work out the other half of the proposition — the solution they’ll respond to.

The first thing you know is that it has to be somehow better, stronger, or entirely different than whatever solution everyone else is offering. How do you figure that out?

It starts with studying the competition. What’s working for them? Further, what has worked for you in the past, which you haven’t since returned to?

Because these pitches are already tested and proven effective.

In both cases, you’re getting a feel for the solutions that hit the prospect closest to the core. Good sales processes or advertising solves problems. It offers hope. That much is proven over ages. And it works.

5. Right pitch, wrong timing?
Bestselling author Malcolm Gladwell called it the “tipping point.” One of the things so many businesses fail to take into consideration is how well timed their promotional campaigns and sales presentations are with what’s currently happening in the marketplace.

The bottom line is that markets move fast, and armies of prospective customers march on. What worked yesterday or even this morning may not work tomorrow. That’s why you SHOULD be plugged into what’s happening in the world, and in the marketplace. Subscribe to the magazines your customers read. Use blog-tracking services online to see what the most passionate customers for your product or service are talking about. Set up a Google news alert related to what you’re selling (you can do so at this page: https://www.google.com/alerts ).

Again, I don’t pretend to be a “guru” … I just see what works, and I pass it on.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals 2 More Advertising Mistakes appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals 3 Common Advertising Mistakes

Mon, 04 Aug 2014 08:45:00 GMT

With all of the chaos swirling around — Israel/Palestine, Russia/Ukraine, the border mess, EBOLA, etc. — it’s tempting to just throw your hands up and drown yourself in work … or drown yourself in the chaos, and rut there for a while.

So how are you feeling about your business this week ?

I’ve got some marketing and sales advice to lift your vision (very attainable, btw) and I wanted to offer you these important reminders, during a storm:

Hammernik’s Key Reminder #1: What you choose to “ingest” over these next few days will greatly impact your state-of-mind. Garbage in, garbage out, as they say. And, of course, the opposite is true — when you surround yourself with excellence and clear-eyed determination, you find that your heart and mind carry much greater strength.

Temper your media intake this week, as most of those outlets are (quite literally) merchants of fear.

Oh, and as I write this, it’s no surprise that the stock market is “reacting” a bit. (The Dow Jones is down about 500 points since Tuesday, 7/29.) So, this leads to my second reminder:

Hammernik’s Key Reminder #2: The only thing certain about the stock market is that it’s volatile . So those of you with many assets resting there, don’t make moves out of panic. Sit down to discuss a tax-advantaged strategy … not a knee-jerk fear response.

Hammernik’s Key Reminder #3: The only thing you can truly control is yourself. You can’t control the market, you can’t control our foreign affairs (unless, of course, Messrs. Kerry or Hagel are somehow reading this — perhaps you guys can!), and there’s a real sense in which you can’t even, really, control your salary and income.

And don’t believe that you can fully control your business, or your client behavior — that’s a clear path towards irrelevance and bankruptcy. But you CAN affect your business through effective sales and marketing.

But so much of what people do with their existing advertising doesn’t work. So I’ve put together some clear-eyed advice about what DOES work (and I’m speaking from personal experience here).

Oh, and if you’d really like to talk this week (and I don’t blame you) I have EIGHT open tax-planning sessions. But I urge you to move quickly, as they’re going quickly. Send me a quick email, or call: (414) 545-1890 to grab one.

On to making your advertising better…

Dale Hammernik Reveals 3 Common Advertising Mistakes
“The great accomplishments of man have resulted from the transmission of ideas of enthusiasm.” – Thomas J Watson

Whether you create most of your sales through referrals, through direct marketing, or with a dedicated sales force–there’s some common mistakes I’ve seen which are destined to suck the life out of your sales process.

Starting this week, I’ll be sharing a series of them so that you can FIX them, if you discover you’re making them. As we move through summer (a typically “slow” season for many businesses), it’s the perfect time to evaluate your marketing processes…and plug the holes.

So, here’s a start…

1. Failure To Tell Your Story
One of the simplest mistakes many marketers or sales professionals make happens long before they set out to make a sale: they don’t settle into the clear, *unique* story behind their service or product.

I’m not referring to an “origins” story (though that’s often pertinent), but rather–what’s the MAIN message nobody else is telling? Or just as good–what’s the story that sets you apart from your competitors?

This is often called the “Unique Selling Proposition” (USP), and it’s essentially: “Why you?”

Ask yourself…if you had five seconds to sum it all up, and you had to close the deal on the spot…what would you say?

When the answer to that little thought experiment is enough to complete a sale, you’re good.

2. Right Product, Wrong Market?
This one isn’t always something you can control, but every business owner should get feedback from their customers/clients about this.

Is your proposed customer base actually interested in the item or service you’re wanting to provide? You could be selling the best darn carpet cleaning service in Waukesha County…but what if everyone’s got hardwood floors?

So…before you launch that new service or product, do some *basic* research: Are there other businesses in the Waukesha County area successfully selling a similar product or service? Despite your fears–that’s a GOOD sign, because it means you won’t have to carve out some kind of unique niche.

It seems, though, that many business owners pursue the “holy grail” of a totally unique offering…and forgetting that it’s probably unique for a reason.

Similarly, many business owners come to the market with what THEY want to sell…and don’t give any serious thought or research into whether it’s something which folks want badly enough to fork over their wallets for it.

3. Right Market, Wrong Problem?
Let’s assume, at this step, you’ve got the right target market. And you’ve got enough of them in one place that you’ll be able to sell something effectively.

But still, the product or service fails. What happened?

The next thing you have to ask is if you’ve really got your finger on the DESIRES of your targets…not just their NEEDS.

Are you really speaking to the element they care about most? Or are you just pitching to the things you *think* the prospect should care about? Surprisingly, those two factors may not be the same thing.

If you think this might be a trouble spot, the next step is to go where those prospects congregate and listen. Ask questions. Take notes. What online forums do they read, and what do they write about within them? What other products do your prospects use, and in response to what sales pitches?

What grabs their attention in the headlines? What do they whisper about at cocktail parties and around the cooler? When they lie awake at night, what do they worry about?

Get the answers to THESE questions, and your sales pitch is practically written for you.

Again, I don’t pretend to be a “guru” … I just see what works, and I pass it on.

Feel very free forward this article to a Waukesha County business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, at Hammernik & Associates we specialize in tax preparation and planning for Waukesha County families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890
Hammernik & Associates

The post Dale Hammernik Reveals 3 Common Advertising Mistakes appeared first on Talking Tax to Milwaukee .

Milwaukee & Waukesha Counties Small Business Accounting Expert On Refocusing Right-Thinking For You and Your Team

Mon, 28 Jul 2014 08:01:00 GMT

Last week we talked about small business owners (perhaps like you) forgetting to “sell”.

You see, what I’ve found when working with my business owner clients in Milwaukee & Waukesha Counties and beyond is that when you focus on something enough, it becomes “big” and crowds out room for the truly big issues.

The client service coordinator focuses on moving the paper, getting the phone answered … and maybe focusing just as much on the person in the next room she doesn’t like, the chair that squeaks … and on and on.

We all need to be brought back to what’s important in business. Over and over.

It adds purpose to what we do. It’s also the magic ingredient that separates the good from the great.

And I’m here today to remind you (and perhaps your staff, now!) of it…

Milwaukee & Waukesha Counties Small Business Accounting Expert On Refocusing Right-Thinking For You and Your Team
“Leadership is a potent combination of strategy and character.” – Norman Schwarzkopf

What are the most important tasks in your business? Taking care of customers and growing revenue.

Add any trendy business philosophy you want on top of that, and it still gets down the same thing.

So … EVERYONE on your team should either be adding revenue or helping to control expenses. I suggest you (constantly) ask your staff — and yourself — what they can do to help:

1. Get more customers
2. Keep customers longer
3. Increase the amount of each transaction
4. Control expenses
5. Get more referrals
6. Get testimonials
7. Make operations more efficient

So, in that vein, here’s a discussion you can have at your next staff meeting:

* Review and discuss these 7 issues
* Ask everyone to write down the things that would help them do their job better (or obstacles that are in their way)
* Ask everyone to write down ideas for each of the 7 issues between now and the next staff meeting
* Review everyone’s first draft privately or as a group in your next staff meeting

Everyone in your business must be involved in growing revenue or controlling expenses. They must see their role in that part of the business. And YOU — the business owner — must keep that discussion alive and dynamic.

Good luck!

Again, I don’t pretend to be a “guru” … I just see what works, and I pass it on.

Feel very free forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Milwaukee & Waukesha Counties Small Business Accounting Expert On Refocusing Right-Thinking For You and Your Team appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Advice to Business Owners: Don’t Forget This!

Mon, 21 Jul 2014 08:03:00 GMT

There do seem to be some signs that our country’s economy is shaking off at least SOME of the doldrums. Despite all of the foreign policy chaos we’re seeing, domestically speaking stocks are high, confidence is steady, and though there are still plenty of reasons for concern, things could be improving in the Milwaukee & Waukesha Counties area, as well.

But even with various items of good news, we’ve all still gotta plug the holes in our own houses.

And this economy is certainly revealing some “holes” in some of my friends’ and clients businesses, here in the Milwaukee & Waukesha Counties area and beyond. Others are doing well, thriving even … but I want to say that discovering sales problems can be a healthy process, however painful — and certainly always worth it.

So I thought I would take this week’s Business Strategy Note to highlight some issues I’ve been seeing as I occasionally talk with friends and clients about their businesses…

Dale Hammernik’s Advice to Business Owners: Don’t Forget This!
“It’s not what you look at that matters, it’s what you see.” – Thoreau

It’s always been hard-scrapping for small business owners. We’ve all heard the old adage: At least 85% and maybe as high as 98% of new small businesses fail before they hit the five year mark.

That rate may even have been higher over the past half-decade.

(So, by the way — not a bad reason to be proud; that you’re still riding this economy and haven’t given up yet. Don’t quit.)

Usually the “conventional wisdom”, especially among many accountants or service professionals in the financial arena, will tell you that the reason for that failure is “under-capitalization” and “poor fiscal management”.

But see, as a Milwaukee & Waukesha Counties accounting professional, I can point you to businesses that have failed with enough money to do everything they needed to do ten times over. And yet still, some management consultant will tell you it’s “poor management ability”.

I suggest to you that what it is in most cases is that the business owner decided that once he or she was in business they were done needing to sell.

It’s amazing, but many people in many types of businesses believe they don’t have to sell. For example, most doctors believe that they don’t have to sell. There are a lot of restaurant owners who believe that. Incredibly, there’s a lot of retail store owners who believe that “we open the doors and the customers come to us,” and “we don’t have to ‘sell’ anyone.”

I think you see how dangerous that thinking is. It may not be “classic” cold-calling or prospecting … but can you really believe that the patient consultations with doctors aren’t a sales process?

You obviously have some method you use to promote your business or you wouldn’t even be in existence. But you probably only have one method or two methods or three methods that you use consistently. So a good way to add a boost to your bottom line is to increase the number of methods you use.

The more methods, the more business. As marketing legend Dan Kennedy says, “Diversity is the creative opposite of laziness.” So you need to think, “How can I use more methods to attract the right kind of people to do business with me — more than any other competitor will use?”

The more methods, the more business.

Hopefully that thinking process has begun to take place for you today. Again, I don’t pretend to be a “guru” … I just see what works, and I pass it on.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik’s Advice to Business Owners: Don’t Forget This! appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Advice: Meet Less, Be More Productive

Mon, 14 Jul 2014 08:27:00 GMT

Are you like me? Because occasionally I find myself loathing “meetings”.

Working in business accounting, I know as well as anyone that they are absolutely necessary at times — and a business that NEVER has them probably won’t get on the same page with the frequency or alacrity that succeeding in 2014 (and beyond) now requires. It’s a fast-moving marketplace, folks.

But exactly because it’s so fast-moving out there, we simply must not allow the corporate culture of meetings and memos to rule over the advantage we carry as a smaller, more nimble Milwaukee & Waukesha Counties organization or business.

And even in the corporate culture, there is growing literature and advice about cutting down the wasteful environment of relentless meeting.

So here are a few guidelines I’ve put into place … let’s free ourselves from those additional, mindless obligations.

Dale Hammernik’s Advice: Meet Less, Be More Productive
“You wouldn’t worry so much about what others think of you if you realized how seldom they do.” – Eleanor Roosevelt

In the spirit of what I’m writing about, this will be a quickie…

Three essential guidelines for taking control of meetings — and your time.

1) Determine whether you really are necessary to the meeting. Look at the agenda, or find out what the meeting is intended to accomplish. Ask yourself, “Do I actually get anything out of the meeting?” and “Do I actually contribute anything to the meeting?” If your answers are “no,” let meeting organizers know and find a way to avoid attending. Just do it.

2) Try to attend only part of the meeting. If the first part of a meeting is relevant to you, but the other half isn’t, find a way to skip the second half. Just do it, and let the chips fall.

3) Arrive on time–leave on time. Let meeting organizers know that you’ll be happy to attend the meeting but will only stay until the time stated. Then get there on time–and leave on schedule.

These may seem harsh, but your time is valuable. Respect yourself enough to treat it that way.

I’m grateful for our partnership, and dedicated to your success.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik’s Advice: Meet Less, Be More Productive appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s Advice: Work Less, Be More Productive

Mon, 07 Jul 2014 08:26:00 GMT

I was inspired by all this talk of independence. I thought about my work here in the Milwaukee & Waukesha Counties area, and the work of our business clients — and, well, I’m here to offer you a “Dale Hammernik” personal challenge, of sorts:

Take a day off this week.

One day more than you normally would. No email. No work texting. Heck, even turn the smart phone off completely — and see what happens.

Here’s why I’m issuing this challenge…

Dale Hammernik’s Advice: Work Less, Be More Productive
“To succeed in business it is necessary to make others see things as you see them.” – John H Patterson

In his book The 80/20 Manager , Richard Koch cites a fascinating experiment on the subject of “forced time off”:

“…(Boston Consulting Group) consultants were obliged to take one day and one evening off, during which time they were not allowed to use email or voice mail…I’m sure you can guess the results. The teams who were forced to take days and evenings off rated higher not just on work-life balance but on job satisfaction, learning, personal development and open communication within the teams. Moreover, their clients reported greater value delivery than the clients of the control groups. Empirical proofs that less really is more.

“I’m waiting for someone to have the courage to test what would happen if a team is forced to take off two days… then three, then four. Let’s see what happens when they work just one day and one evening each week. “ (page 174)

The Perlow & Porter experiment cited above hints at why this is so profoundly true for Milwaukee & Waukesha Counties businesses. Faced with the constraint of having to take time off, the consultants at BCG suddenly found themselves having way more discussions about HOW work was being done and fewer conversations about WHAT work was being done.

“People were initially skeptical about spending so much time looking at work processes. But in the end, most teams found it helpful. The check-ins not only allowed teams to engage in explicit conversations about achieving their time-off goals, but they also sparked valuable discussions–involving the whole team–about priorities, expectations, and problems people were facing.

By contrast, in typical nonexperiment teams, consultants generally start talking about problems only when they are already overstressed and less able to think rationally or do much about them.”

Re-read that last sentence. The zero-constraint, always-on, smartphone-addicted lifestyle of the average Milwaukee & Waukesha Counties area entrepreneur makes it LESS likely that you will think rationally about the strategic decisions you need to make in your business.

But forcing yourself to take time off, one evening a week, then one day a week and, yes, as Mr. Koch recommends, even 4 days a week, will force you to make clearer, more strategic decisions.

Working less = earning more.

It’s an equation that seems to violate everything we’ve been told about work … we’ve been told that you work your tail off, lay aside a bunch of cash and then SOMEDAY you’ll be able to work less.

FALSE. Does not compute.

Working less = earning more is an equation that I believe we all must embrace in the Milwaukee & Waukesha Counties area if we want to take our businesses to the next level.

So, take one day off next week as a test. I wonder what would happen?

I’m grateful for our partnership and dedicated to your success.

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik’s Advice: Work Less, Be More Productive appeared first on Talking Tax to Milwaukee .

Milwaukee & Waukesha Counties Accountant On: The Making of Long-Term Customers

Mon, 30 Jun 2014 08:32:00 GMT

How are you and your Milwaukee & Waukesha Counties area small business feeling about 2014 so far?

Now that we’re just about halfway through, it’s a nice time to take stock.

So, really, I’d be interested: How are things going for you so far? Send me a quick email here at Team Dale Hammernik so I can get a feel for it.

Running a small business can be lonely … and I, perhaps obviously, like to be able to offer encouragement along the way, for you, my Milwaukee & Waukesha Counties-area tax accounting clients.

This week’s Note is a simple method to keep your best customers doing more and more business with you throughout the year. As with the above, I’d enjoy hearing your thoughts.

Here we go…

Milwaukee & Waukesha Counties Accountant On: The Making of Long-Term Customers
“The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed.” – Henry Ford

Customers for life are MADE — you don’t just “happen upon” them, in my opinion.

But the fact is, most Milwaukee & Waukesha Counties area small businesses pay too much in chasing new customers and too little in building repeat business with their existing customers.

Which is unfortunate because the satisfied customer will likely purchase again. And they will probably purchase more and purchase something different.

This matters because it definitely costs less to motivate a known customer to purchase again than to acquire a new customer.

In fact, it’s probably most often the case that your (and my) customers are only fickle because a new Milwaukee & Waukesha Counties based competitor is paying more attention to them than you are.

In business-to-business marketing it seems that many companies make the huge mistake of having all their contact with their customers go through the sales representative. This leaves the customers vulnerable to theft if the representative jumps to another employer. It also leaves too much opportunity for negligence on the sales rep’s part.

Regardless of the layers of distribution between you and your customer, it’s a good idea to establish some direct link as an owner or president. The owner of a restaurant can do that by coming around and chatting personally with the customers. The chief executive officer of a large company can do it with a newsletter and maybe a hotline telephone number.

Direct mail is perfect for cutting through these layers (in addition, and on top of email). Here are some of the ways that direct mail can be used to communicate with established customers.

* Introduce new products or services.
* Give advance notice of and explain price or fee increases.
* Offer special discounts or premiums.
* Provide useful information.
* Give recognition to top customers.
* Announce seasonal sales.

And more.

I’ve rarely seen a Milwaukee & Waukesha Counties business that could not increase and improve through increased direct marketing to current customers.

Do not make the mistake of assuming knowledge on the part of the customer.

Do not take shortcuts with existing customers and do not feel that you are boring them by telling the same story repetitively.

If you have quality, service, guarantee, price or other advantages, point them out each and every time you deliver a presentation.

Even as a humble, “non-guru” Milwaukee & Waukesha Counties accountant, I submit to you that American business desperately needs to place a new, higher value on the customer in this economy. Communicate with your customers and you’ll do more business.

I’m grateful for our partnership, and dedicated to your success,

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Milwaukee & Waukesha Counties Accountant On: The Making of Long-Term Customers appeared first on Talking Tax to Milwaukee .

Dale Hammernik’s 27 Reasons To Purchase Your Own Building

Mon, 23 Jun 2014 08:06:00 GMT

We probably advise our Milwaukee & Waukesha Counties accountant firm’s clients every week on how to handle their businesses, and their finances.

It’s a big part of what we do around here at Team Dale Hammernik, and many clients don’t even realize how much we’re willing and able to help. (And that’s fine, because we are plenty busy — but always willing to talk.)

We can help your Milwaukee & Waukesha Counties small business with tax planning, financial advice, expense analysis, management input — it truly runs the gamut.

One of the conversations we’ve often had over the years revolves around real estate, specifically in the commercial realm. So, I thought I’d put together a little list of reasons why your business might should buy its own building…

Dale Hammernik’s 27 Reasons To Purchase Your Own Building
“The great thing in the world is not so much where we stand, as in what direction we are moving.” – Oliver Wendell Holmes

1. You won’t have to move unless you really want to.
2. When your clients associate you with a location, you can keep the location.
3. You can install anything you think is helpful.
4. You can decide what maintenance is important and when it is important.
5. You can set your own temperature controls.
6. You can finish the interior exactly the way you want.
7. Some expenses are only justified when you know you have a long-term lease.
8. You get stable rent.
9. Your business can pay rent (which is a business expense).
10. You can own the building in a separate LLC, providing limited liability and separate tax accounting.
11. Your LLC can depreciate the building which gives you a tax advantage to offset the rental income.
12. If you hold the building until your heirs inherit it — they will get a step up in cost basis erasing the depreciation.
13. Any interest payment is a deductible expense to the entity owning the building.
14. You can sell the building and reinvest in property without paying capital gains through a 1031 exchange.
15. Owning real estate allows you to profit in any combination of cash flow, appreciation, and reduction of debt.
16. You can get a relatively long-term commercial lease at a reasonable rate.
17. Office buildings are relatively inexpensive right now, making it a good time to buy.
18. There are a number of empty office buildings, making it a good time to buy.
19. A mortgage at today’s rates is the best hedge against inflation.
20. Rents are relatively low now and will rise as interest rates rise.
21. The rental income offers a diversification to your business.
22. Even if you decide to sell or move your business you can keep the rental income.
23. You are not thinking of retiring in the near future.
24. You are not thinking of selling the business in the near future.
25. You can carefully select any other tenants to enhance the neighborhood of your business.
26. You now have an appreciating asset for a fraction of the down payment leveraging your investment.
27. You have sufficient assets or cash flow to make leveraging your investments a risk you can afford.

All that said, there are certain reasons that it may NOT be in your best interests to purchase:

* You do not want to leverage your investments by adding a mortgage to the mix.
* You don’t have the cash flow or capital to purchase the building.
* You are expanding and will likely need a different building in the future.
* You need the money it would take to purchase the property for living expenses.
* You are thinking of retiring soon.

If anything on this list catches your eye, let’s have a strategy session together.

Email or call: (414) 545-1890

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik’s 27 Reasons To Purchase Your Own Building appeared first on Talking Tax to Milwaukee .

Dale Hammernik Shares Another Big Mistake: No Client Tracking

Mon, 16 Jun 2014 08:21:00 GMT

In this week’s Business Strategy note, I am continuing my little war on bad business, this time about one of the key differentiators I see among my most successful Milwaukee & Waukesha Counties business owner friends.

I hate to say it, but it is an almost obsessive attention to the finer points of sales — frequency, cost-per-sale, “upsells”, etc. Even in “regular” Milwaukee & Waukesha Counties area businesses, these factors can make the difference between ugly red and beautiful black on the P/L reports.

Dale Hammernik Shares Another Big Mistake: No Client Tracking
“One worthwhile task carried to a successful conclusion is worth half-a-hundred half-finished tasks.” – Malcolm Forbes

I’ve written before about the most important pieces of information you should know about your target prospects, but did you know that this same approach is actually even more important for your own customers?

Why? Well, for the simple reason that they’ve already signaled their interest in your products or services by giving you their business. And, that makes this list the most valuable list you can maintain in your Milwaukee & Waukesha Counties area business.

It’s even better, if you’ve got a bead on the following 6 pieces of information, on top of their names …

1. What They’ve Purchased
If you know what your customers purchased in the past, you have a good idea of what they will buy again. (And you won’t waste your time promoting products of little to no interest to them, or to others.)

2. How Often They Purchase
Individuals who buy rarely from you may need additional encouragement — i.e. more marketing. Whereas, consistent customers may not need extra sales pitches, but might benefit from a newsletter or coupon.

3. How Much They Spend (on average)
Why spend precious time pitching products to customers which they can’t afford? It might embarrass your customer, shows your lack of personal interest, and may cause customers to lose interest.

4. The Last Time They Purchased
Have you lost a customer without even knowing it? Who’s still loyal? Who has strayed (and needs to be brought back)?

5. Each Interaction You’ve Had With Them
Documentation is important for obvious reasons. But being able to “recall” previous conversations will make your customer feel important and appreciated.

6. How They Feel About Your Business
Feedback from your customers is the best way to improve your products/services, meet your customers’ needs, and attract more customers.

Obviously, just “remembering” this information is well nigh impossible. Which is why you should seriously consider investing in a “CRM” (Customer Relationship Manager) program. There’s plenty of good ones out there.

I can recommend this one for most Milwaukee & Waukesha Counties small businesses: (Infusionsoft) https://crm.infusionsoft.com/go/20140604emdaff/nfh?utm_content=nfh , but again — the point isn’t *which* one, but that you HAVE one!

Look, I’ll say again: I don’t pretend to be a “guru” … but I see what works for my most successful business owner friends, and I love seeing their numbers grow!

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik Shares Another Big Mistake: No Client Tracking appeared first on Talking Tax to Milwaukee .

Dale Hammernik Reveals Another Big Mistake: Ignoring Negative Feedback

Mon, 09 Jun 2014 08:18:00 GMT

I’ve been hitting some common notes the past couple of weeks on behalf of my Milwaukee & Waukesha Counties small business accounting clients:

Grumbling about the economy (and how it never helps us).
Bad advertising.
Bad measurement.

Well, let’s add another to the mix, shall we? Seems like an appropriate way, staring, as we are, down the barrel of the sultry Milwaukee & Waukesha Counties summer, and the hot (and occasionally grumpy) clients that come with it!

Dale Hammernik Reveals Another Big Mistake: Ignoring Negative Feedback
“The key to successful leadership is influence, not authority.” – Kenneth Blanchard

Here’s a certain truth : Every Milwaukee & Waukesha Counties business, no matter how well-managed, will mess up.

You WILL have to deal with dissatisfied, even angry customers from time to time. Sometimes the customer is justified in his complaints … other times he is not, so what are you going to do about it?

Here’s the way many businesses handle it: ignore the problem, and blame the customer. Sure, during the fat 90’s and from 2003-early 2008, this might have been fine (plenty of other business out there, after all) … but in 2014 — in the age of social media, blogs, Yelp, etc., you MUST respond to the feedback you receive.

Shoot, I predict that you’ll find that what you thought was a disaster can be converted to an opportunity.

In fact, there’s oft-cited American Management Association (AMA) research into consumer behavior which indicates that the average satisfied customer tells three people about his experience but the average dissatisfied customer gripes to eleven other people. Negative word-of-mouth advertising is a problem few businesses can afford.

And with Facebook and Twitter (and Instagram, and Yelp and … you get the point), you could probably safely multiply that by a few tens.

So how will you respond to the customer with a complaint? I’ve already spoken about what NOT to do (ignore the customer, ignore the problem).
So, here are some trenches-tested steps. Feel free to post this around your biz:

1) Acknowledge that the person is upset.
“I can see that you are mad” / “I could see that you’re upset with us.”

2) Make a positive reassuring statement.
“I want you to know I will get something done about your problem.”

3) Make a sad/glad statement.
“I’m sorry you had a problem but I’m glad that you called it to my attention.”

4) Ask the magic question: “What will make you happy?”
You’ll often be quite surprised — in many cases, the dissatisfied customer will ask for something less in settlement than you would freely offer.

5) Make the settlement.
“Mr. Smith I’m truly sorry that you encountered this problem and I’m going to do exactly what you have requested. We want to keep you as a valuable customer!”

Simple as that!

But the sad fact is that by avoiding this simple process (and not training your employees to follow it, or not giving them the proper authority to do so), many Milwaukee & Waukesha Counties area businesses set themselves up for aggravating their most important asset: their clients.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik Reveals Another Big Mistake: Ignoring Negative Feedback appeared first on Talking Tax to Milwaukee .

Milwaukee & Waukesha Counties Accountant Reveals A Big Mistake: Set Advertising Goals; Don’t Measure

Mon, 02 Jun 2014 08:00:00 GMT

Goal setting? Really?

Honestly, this whole ritual of “goal-making” can be very cliche, but look — all of us Milwaukee & Waukesha Counties small business owners still do need little “nudges” to help us actually make changes in our lives.

I see it as my role in your life to not only provide authoritative and actionable advice for your Milwaukee & Waukesha Counties business financial situation, but also to play the role as a friendly “coach”. I get to be someone in your life who says: You can do this. You’re not alone.

I *do* have goals here at Team Dale Hammernik, but I like to think I do them right ( don’t we all! ).

The difference being that I seek to attach measurable results to these goals — making them a bit more specific to my business and my life. I’ll keep the particulars to myself, but for my own Milwaukee & Waukesha Counties tax and accounting business they fall into some broad categories:

1) Profitability
2) Foundational Financial Growth
3) Marketing Effectiveness

As you set your specific goals for your Milwaukee & Waukesha Counties business, I’d love to be a resource to you. It’s my great hope that our relationship will continue to grow into this summer and beyond. And not just for “business purposes”. We love our referral sources and business owner clients … you’re a family to us!

And now for more specifics about the “measurement” issue I alluded to… after all, as an accountant, I’m a bit of a measurement nut.

Milwaukee & Waukesha Counties Accountant Reveals A Big Mistake: Set Advertising Goals; Don’t Measure
“Right is right, even if everyone is against it; and wrong is wrong, even if everyone is for it.” – William Penn

Many Milwaukee & Waukesha Counties businesses have a wide variety of measurement tools in place for a host of variables, from payroll efficiency to profit margins, to inventory controls. But there’s usually a huge “missed base”, and that’s advertising ROI.

You see, many business owners look at their advertising in terms of “response rates” or “raising awareness”. But it’s hard to measure “awareness”.

And while you *can* measure response rates, it’s actually the wrong way to think about your advertising. A better way to look at small business advertising results is actual Return on Investment (ROI) .

Now, this necessitates a couple things:

1) A measurement mechanism.
This can be a coupon/gift certificate with a tracking code. It can be a dedicated phone line or a cookied web address to quantify leads. It almost doesn’t matter HOW you do it … just that you do it.

2) Advertising which incentivizes for a specific response.
This rules out certain forms of “image-building” marketing, unless you’ve got a bunch of dumb money to spend. ( Do you? I’ve got some beachfront property to sell you in that case. ) Rather, you should focus on “response-oriented” marketing which will help you know if the advertising you’re paying for works.

And I want you to remember this: any Milwaukee & Waukesha Counties media sales person, any ad agency person, any consultant, anyone in your own firm who is anti-direct-response does not have your best interest at heart. The person who opposes having the results measured accurately already knows that the results are inadequate.

Unfortunately, the agency business can be very much a smoke screen and sleight-of-hand business. You’ll be presented with demographic statistics from a given media that are just great. Unfortunately the listeners or readers all lied when they responded to the survey in order to look good and feel good. They inflated their incomes for example.

Print media loves to snow you with its pass-along figures. They’ll talk 100,000 readerships with 20,000 subscribers.

When you have to write out the payroll checks, pay the other bills, pay for all the advertising, pay the taxes and then see what might be left for you, you cannot deposit pass-along statistics or image in the bank account. You can only deposit dollars, which come from real results.

So keep this in mind as you formulate your marketing and RESULTS goals for 2014!

Look, I’ll say again: I don’t pretend to be a “guru”… but I see what works for my Milwaukee & Waukesha Counties clients, and I want you to have the best year you’ve ever had.

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Milwaukee & Waukesha Counties Accountant Reveals A Big Mistake: Set Advertising Goals; Don’t Measure appeared first on Talking Tax to Milwaukee .

Milwaukee & Waukesha Counties Accountant Reveals A Big Mistake: “Treat All Prospects the Same”

Tue, 27 May 2014 08:05:00 GMT

There’s always a ton of doom and gloom out there, with unemployment figures, continual media drip of bad news, and just general bleakness about the prospects for Milwaukee & Waukesha Counties small businesses. Grumbling about the ACA, inflation, mounting national debts … blah, blah, blah.

Not that these aren’t serious problems, but we don’t have to join the grumblers, do we?

I’d much rather that I, Dale Hammernik, be counted among those who are forsaking grumbling for the purposes of pursuing growth.

But it starts with getting serious about sharpening our sales and marketing strategy in 2014. Things that were “easy” in the past just aren’t as easy as they used to be.

It’s time to make sure you’re squeezing all the value you can out of your advertising and your selling. And to do that, you’ve got to avoid the big mistake I write about this week.

Milwaukee & Waukesha Counties Accountant Reveals A Big Mistake: “Treat All Prospects the Same”
“The ability to learn faster than your competitors may be the only sustainable competitive advantage” – Peter Senge

When I sit down with a Milwaukee & Waukesha Counties business owner friend, and we’re talking biz, I enjoy the back and forth of different strategies. One of the main things we like to do for each other is help identify new streams of revenue in one another’s business.

And, here’s something which I’ve seen in healthy, growing businesses … and which is absent in stagnant, failing small businesses: knowing their target prospect.

You see, in EVERY kind of Milwaukee & Waukesha Counties business (even a non-profit), you want to do business, accept donations, serve clients, etc. who meet a particular profile. And, if you can identify this profile, you can save a bunch of advertising money, and keep your sales force from wasting their time.

Sometimes, small business owners think their market is simply “the local Milwaukee & Waukesha Counties area.” Or, even worse, “anyone with money to spend”. I hope you see how wasteful this approach can be.

No, you’ve got to zero in on what groups will provide the best ROI possible when you’re putting together your marketing plan.

So, you’ll need some detailed information about your BEST target clients. In fact, I’ve written about this previously, but then only in general terms. Here’s more specifics for you…

I put together a list of 7 things you absolutely MUST know about your prospects.

(And, in case you’re wondering, if you’re a Milwaukee & Waukesha Counties B2B business, this is just as pertinent. You’re still selling to people not companies. Remember that!)

1. Age- Everything you say and write, including slang, allusions, word difficulty, and topics should be adjusted to meet age appropriateness.

2. Gender- Despite the dual roles men and women tend to fill, most individuals can be segmented (and sold to) based on gender-specific interests or needs.

3. Location- Values and culture tend to vary based on demographics. Having a clear understanding of regional difference will improve your targeted messages.

4. Education Level- Similar to age appropriateness, education levels should determine how you address your prospects and what benefits they will find in your product or service.

5. Income- The needs and wants from one social class to another should be a guide to the types of products and services you should be selling them.

6. Marital Status- The values, needs, and desires of married persons greatly differ from those that are single. Marketing family messages to single persons (and vice versa) can lose the deal for you.

7. What Keeps Them Up At Night- This is the most important one. You’ve got to know your prospect’s fears, worries, concerns, excitements, hopes and dreams. When you know the conversation inside your prospect’s head, you can enter it, speak to it, and build a relationship that leads to a customer.

So, take the time this week to really nail down these profiles.

And in the meantime, feel free to forward this to your sales force or anyone dealing with your prospects, and make sure they understand how to speak to them effectively!

Again, I don’t pretend to be a “guru” … but I see what works for my Milwaukee & Waukesha Counties small business owner friends, and I want you to have the best year you’ve ever had, in 2014.

Dale Hammernik
(414) 545-1890

The post Milwaukee & Waukesha Counties Accountant Reveals A Big Mistake: “Treat All Prospects the Same” appeared first on Talking Tax to Milwaukee .

Milwaukee & Waukesha Counties Accountant Pleads With Milwaukee & Waukesha Counties Businesses: Run Advertising That WORKS

Mon, 19 May 2014 08:37:00 GMT

When I chat with my Milwaukee & Waukesha Counties business owner friends, I find that many of them are adopting a “herd mentality” when it comes to marketing their Milwaukee & Waukesha Counties business. And I’d like to see that change for you, and for all my business owner friends.

Granted, I know my limits — I’m an accountant, not a marketing guru. But I pay attention to the local and national marketplace. Plus, I get a yearly crash course on marketing and sales success by observing my most successful Milwaukee & Waukesha Counties-area small business owner clients here at Team Hammernik.

And, of course, I also make it my business to pay attention to what *established* marketing experts DO say about how to grow a small business.

You see, you’ve got choices about the kind of marketing and advertising you do, and I’d like to take some time clarifying the different options for you … and their strengths and weaknesses.

Milwaukee & Waukesha Counties Accountant Pleads With Milwaukee & Waukesha Counties Businesses: Run Advertising That WORKS
“Anything worth doing is worth doing poorly until you learn to do it well.” – Zig Ziglar

When I sit down with a Milwaukee & Waukesha Counties business owner client or friend, I often ask them why they are advertising. In many cases, I hear the owner (or even the Marketing Director) say: “To get our name out” or to “build awareness of our product or company”.

Frankly, this line of thinking is fine for large corporations with bazillions of dollars to spend and months and years to wait for results. But for the small-to-medium sized business, this kind of marketing is a hit-or-miss proposition … and usually, that means “miss”.

Instead, after seeing my most successful Milwaukee & Waukesha Counties business owner friends, I am a strong, enthusiastic advocate of direct response marketing.

Why? Because it’s one of the only forms of marketing which can be directly tracked for ROI. Do you have six figures to spend on “hope”? Because if not, then you should work to get seriously good at the style of marketing which you can track, just like an investment.

Sure, there are other forms of marketing, but Direct Marketing can be tracked — and as somebody who works with numbers and the tax code, you can imagine that I LOVE tracking! But before we get into more details on Direct Marketing, let’s talk first a little bit about the others.

There is “image” advertising. This type of advertising is often intentionally used by big corporations and blindly-copied by smaller ones. It essentially says to consumers, the press, board and/or to stockholders, “here we are, here’s who we are, here’s what we do, and we’re nice guys”… but it never asks anybody to buy anything or to take any action. It’s classic image building.

Some examples you’re probably familiar with include the AT&T sign you see behind the plate at the World Series, the Charles Schwab commercial you see during the Sunday morning news programs and football games, most bank advertising, CNN signs in airports … this is all pure image advertising.

Ad reps, consultants and the media love to sell you this type of advertising because there is no possible way to measure its effectiveness. Is it working? Is it paying for itself? … Who knows?

The next approach is a little bit better, and I’ve heard it called “Non-Measurable Response Advertising”. This type of advertising is trying to sell something, but unfortunately it is still basically unaccountable for its results. TV commercials for a particular brand of car fall into this category. The intent of those commercials is to get you interested enough in that car to go to the show room … but there’s still really no way to tell how many people who came to the showrooms this week were influenced by those commercials.

Would they have come anyway as a result of the dealer’s own newspaper ads? Who knows? Many of my friends get trapped using this type of advertising.

Retailers all run sales ads – “here’s what’s on sale — come on in!” But they still have no clue who’s actually coming in because of that ad, or if the traffic wouldn’t have just been decent even if they hadn’t run the ad.

They can guess. They can look at this weekend’s higher traffic against last weekend’s traffic and attribute the difference to the ads … but if you’re at all aggressive, it gets worse. If they advertise the sale via the newspaper, two radio stations and flyers … how do you tell which ad works and which doesn’t? Again–ad agencies and the media like to sell this type of advertising because it’s difficult for the advertiser to measure the results.

Another type of marketing is public relations and publicity.

You can hire companies to issue press releases and articles about your products or services and your company and they will work to get them placed in various media. These firms can arrange interviews and talk show appearances. And, though you can measure them by how much actual exposure they get for you, it’s still generally difficult to then measure how much business came from the exposure. Also in this category is the sponsorship of everything from a little league team to an Indy 500 race car or a golf tournament.

All three of these types of marketing probably have some place in a Milwaukee & Waukesha Counties business’ total marketing plan. It is my firm belief, however that these methods are grossly and deliberately oversold to clients by media and professionals because of their resistance to results measurement. It is also my opinion that most businesses, the owners of small businesses and the executives of large companies stupidly waste outrageous sums of money on these non-measurable marketing options.

I know … I’m an accountant, right? But this isn’t just my opinion. The smartest marketers on the planet (from what I can tell), AND my smartest Milwaukee & Waukesha Counties business owner friends, all incorporate measurable, results-oriented marketing.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Milwaukee & Waukesha Counties Accountant Pleads With Milwaukee & Waukesha Counties Businesses: Run Advertising That WORKS appeared first on Talking Tax to Milwaukee .

Dale Hammernik On Customer Targeting

Mon, 12 May 2014 08:51:00 GMT

Dale Hammernik here, with some business wisdom for you. As is often cited, more fortunes were made during the Great Depression than during any other time to that point (and well beyond, even when you adjust for inflation).

I say this to point you (and me) higher, and to lift our vision about what is possible in the Milwaukee & Waukesha Counties marketplace — especially with all of the continued doom and gloom in the media, and among our friends’ posts on Facebook!

But marketing, sales and other strategies which worked here in the Milwaukee & Waukesha Counties area like gangbusters for years may not be having the same results now as they did even months ago.

So, as we all look at growing our businesses, perhaps we need to stop looking at the “conversion percentages”, and look at something more fundamental.

Dale Hammernik On Customer Targeting
“Keep in mind that the true measure of an individual is how he treats a person who can do him absolutely no good.” – Ann Landers

Do you know the profile of your ideal customer or client for your Milwaukee & Waukesha Counties small business?

Because that’s the first place you must start when creating a marketing campaign to get new customers.

Many Milwaukee & Waukesha Counties-area clients I see approach their marketing from the following perspective:

“I need more customers, so I will run an advertising campaign. I will then choose a good media and come up with the kind of ad which works best for that medium. This will ensure success.”

Actually, this seems to be completely backwards.

The most successful Milwaukee & Waukesha Counties businessclients I work with have the following approach:

“What is my exact target market and what do they want? Next, since I know my target market and what they want, I can create a message which matches up with what they care about (not just what I provide). Lastly, the right media isn’t a big deal because I just pick the one which reaches my target prospect most effectively.”

Do you see the difference between these two approaches?

So, now that you operate from this paradigm, how do you narrow down your target market? Well, what you’re really talking about is coming up with the right list.

In selecting a list you want to target people most likely to have an existent interest in what you have to offer as well as some things in common with your present good customers.

These commonalities might be found in age, sex, occupation, income level, neighborhood or geographic area, credit card ownership, family size, magazine subscribed to, or any number of other demographics. These factors are called demographics and the professional sources from whom you might rent mailing lists can be incredibly sophisticated in finding or compiling a mailing list of people who conform to your set of desired demographics.

This is ESPECIALLY true now in 2014, with the sophisticated targeting options available in Facebook (or other online) advertising, or direct mail list acquisition.

In business-to-business marketing the same sophistication is available. Lists of companies can be obtained by size, sales volume, asset value, number of employees, type of business, geographic area, magazines subscribed to, credit rating and other factors. Lists of executives, owners, sales managers, personnel managers, purchasing agents, stockholders, or secretaries are also readily available. You can even target ONLY employees of a particular company on Facebook.

List selection can be as simple or sophisticated as you need or want to make it. The owner of an upper class club might want to obtain a mailing list of homeowners within a 50-mile radius of his restaurant who have at least one bank credit card.

A private jet manufacturer might want the list of corporate officers and business owners with net worths in excess of a half million dollars, all across the country.

As a rule, the more demographic factors you can use in controlling the list for direct mail, the costlier the list. To a great degree, extra money spent in narrowing down the list to fit your desired factors is money well spent.

Ironically, in online marketing, often the narrower the demographic, the CHEAPER the list becomes.

But any time and money spent in this narrowing is very well spent, because you reduce the “waste factor” in your marketing when you can narrowly slice down your target to the most responsive possible.

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik On Customer Targeting appeared first on Talking Tax to Milwaukee .

Dale Hammernik On: Retrieving What Was Lost

Mon, 05 May 2014 08:32:00 GMT

With the markets taking a dive the past few weeks, it’s up to us mighty Milwaukee & Waukesha Counties small business owners to keep this economy on the track it needs to be. And that’s not even really a “patriotic” sentiment … I just don’t want to have to live through another “recovery”, you?

So, in that light, I’ve recently had success with something here at Team Dale Hammernik which I thought I’d pass along. Let’s, together, be the ones who are THRIVING … not just surviving, shall we?

Let me know what you think.

Dale Hammernik On: Retrieving What Was Lost
“Remember the two benefits of failure. First, if you do fail, you learn what doesn’t work; and second, the failure gives you the opportunity to try a new approach.” – Roger Von Oech

Bar none, the most important asset in your Milwaukee & Waukesha Counties area business is your client list. I’ll paraphrase Andrew Carnegie who said, in effect: “If you take away all of my wealth, my products, my inventory, my equipment, my staff, in fact, virtually all assets and resources – but leave me my customer lists, I will have everything else back in short order.”

He’s 100% correct. And, in the past, I have urged you to take the steps to ensure you are on top of this list for your business.

There are three segments you should address as we head into summer:

1) Existing Clients
This seems obvious, but frankly it can be one of the most under-utilized — and yet most profitable — groups of customers or clients to pursue.

2) “Lost” Clients
More about these in a minute.

3) Targeted Prospects/New Clients
This is the “sexy” segment … but in my opinion, established business owners spend far too much energy and resources going after this group.

I’d like to posit a thought to you: most of your “lost” clients didn’t leave because you did something wrong. As a business owner, it’s easy to take things personally, and believe that when you lose a customer or client, you really messed something up.

Actually, studies indicate the opposite is true: it’s normally something happening in their life or business, not what your business did or didn’t do.

So going back to this list with a simple appeal for their business, to “give you another shot”, is actually a powerful strategy for recapturing business. Simply asking for them to return is sure to bring a boatload of “lost” clients back.

Everybody loves being wanted.

But most Milwaukee & Waukesha Counties businesses make the mistake of either 1) not even trying to go back after former clients or customers or 2) simply “keeping them on the list” for regular mailings.

Actually what’s most effective is when you acknowledge that the client or customer hasn’t done business with you recently — and you’d like to incentivize them to give you a shot again. It acknowledges that there is a relationship in play, and that the customer/client isn’t just a number to you.

Try it in the next few weeks…watch your response go through the roof.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik On: Retrieving What Was Lost appeared first on Talking Tax to Milwaukee .

Dale Hammernik Shares How To Help Your Managers Manage

Mon, 28 Apr 2014 08:15:00 GMT

Now, moving on to something I had to be very clear about during our busy season — “delegation”.

It’s such a catch word that we often don’t think through its layers.

For instance, we all know the old cliche: “Delegate, don’t dump!”

But one area that I’ve seen many Milwaukee & Waukesha Counties businesspeople struggle with is in helping others do this effectively, within their own organization. When you manage other managers, it’s a different skill than if you are the first-line manager, and you manage only workers.

As I’ve run my Milwaukee & Waukesha Counties accounting and tax firm, I’ve always encouraged my staff to never think of themselves as worker drones; there are always elements of what they do that requires managerial excellence — even, for instance, when they are “managing” clients .

Here’s a little crib sheet I go through my managers, when it seems like it’s needed…

Dale Hammernik Shares How To Help Your Managers Manage
“Ability may get you to the top, but it takes character to keep you there.” – John Wooden

I’ve had to not only manage employees in the course of running my Milwaukee & Waukesha Counties accounting business, but I’ve also learned a thing or two about helping OTHERS do this.

Frankly, when an employee isn’t doing his or her job, your first instinct may be to blame the person for not following instructions, being lazy, or not caring about your organization. But I suggest that you take a step back, address the mirror and look at your own performance first.

Consider these possibilities:

Do employees know what you want?
Go beyond just assigning tasks. Give employees clear performance standards that will help them understand when they’re doing a good job: technical knowledge they need to master, quality and productivity measurements, and so forth.

Do they know why you want it?
Workers make better decisions about what they need to do if they know why a task is necessary: how it affects the company, the employee, and other people, and what happens when they don’t perform the task correctly.

Do employees know how to do the job?
This comes down to adequate training, for both new hires and longtime workers. Make employees part of the training process by having them train others in their new skills.

Do they think they’re already doing a good job?
A worker will think he or she is doing just fine if you don’t offer frequent and regular feedback. Let employees know what they’re doing well, and coach them to get better in areas where they’re weak.

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik Shares How To Help Your Managers Manage appeared first on Talking Tax to Milwaukee .

Dale Hammernik On How To Get Help From Smart People

Mon, 21 Apr 2014 08:23:00 GMT

I’m loving the spring here in the Milwaukee & Waukesha Counties area — it always feels like it’s the perfect time to get a fresh start on new initiatives and ideas that have been on the backburner for our Milwaukee & Waukesha Counties tax accounting firm, but which can now be brought to the front.

Especially, might I add, when it’s after April 15th! We are taking some time around here at Team Dale Hammernik to rest up a bit, and think a little bigger — as we like to do every year after the dust of tax season settles down.

I always like to take some time to dream and work on new things during this season; it matches the season around us somehow, I’ve found.

And this is also the time that, when doing so, I like to seek out specific people, whether locally here in Milwaukee & Waukesha Counties or nationally, and pick their brain on these ideas, and get help.

I’ve picked up some tricks along the way, in so doing, and thought I’d put them together for you here.

Dale Hammernik On How To Get Help From Smart People
“Even if you are on the right track, you’ll get run over if you just sit there.” – Will Rogers

Successful people rarely reach 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.

Personally, I’ve been approached a number of times by “up-and-comers” here in Milwaukee & Waukesha Counties 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 from the experts:

• Please don’t 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.

• Get specific. 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 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. The corollary to the rule above is to save a few minutes to ask something like, “Is there anything else you’d recommend?” once you’ve gotten the answer to your essential question. This gives the expert a chance to expand on whatever information he or she has shared, and provides the opportunity to start building more of a relationship than a one-time transaction.

• Offer something in return. You’re asking for a favor. Be ready to trade services, buy lunch, offer your own expertise, or some other form of reciprocation. This demonstrates your professionalism and commitment to building relationships,
not just grabbing information and leaving right away.

Would you forward this article to a Milwaukee & Waukesha Counties business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Milwaukee & Waukesha Counties families and business owners. And we always make room for referrals from trusted sources like you.

Warmly (and until next week),

Dale Hammernik
(414) 545-1890

The post Dale Hammernik On How To Get Help From Smart People appeared first on Talking Tax to Milwaukee .

Many (many!) thanks

Mon, 14 Apr 2014 08:33:00 GMT

As I write here from Milwaukee & Waukesha Counties Tax Accountant Headquarters, it’s the day before tax day (which is Tuesday the 15th), and we are pushing hard during this final stretch! Procrastinators are streaming through our Milwaukee & Waukesha Counties office doors (after all, we welcome them here), the phone is ringing off the hook, and my email inbox is overflowing.

Another year, another tax day.

How did I remember the deadline was so close? I almost didn’t!

It was only until this morning, as I lifted my heavily-lidded eyes to peer up through the haze of government forms and procedures, and I saw the Team Dale Hammernik calendar — which today said: April 14.

Egads! One day left!

In all seriousness, today is an extremely busy day for us here at Team Hammernik — but as I am a person of ritual, I’m still taking the time to write to you on this, of all days. Though you may be receiving it later in the week, depending on how this day goes!

It’s been a great tax season — and for us, it’s not even close to being over.

Yes, we’ll have a bit of a respite because individual filings (and a slew of other things) are due tomorrow. But since we work so closely with Milwaukee & Waukesha Counties small businesses, we don’t take the same kind of extended vacation of which many of our colleagues avail themselves upon tax season’s completion.

But today’s date gives me the chance to say (again): We are extremely grateful for your trust.

It’s always been our hope that we take a process that is so painful and time-consuming (with so much waste), and convert it into a profitable enterprise through smart tax planning and the coaching of our Milwaukee & Waukesha Counties-area clients. We’re proud to say that we have seen many of those stories this year, as we’ve continued to grow on the strength of your referrals.

I won’t be sharing strategic business wisdom today ( I hope you’ll forgive our needing to stay focused ), but I would like to make one last request:

If you have filed your taxes with us would you…

A) Write me and tell me your honest words about it? If it was positive, I’d love to hear specifics — and if not positive, I definitely still want to hear about it!

B) Share us on YOUR Facebook wall…?

Or some such… thanks again!

Warmly (and with great hope for the future of your business),

Dale Hammernik
(414) 545-1890

The post Many (many!) thanks appeared first on Talking Tax to Milwaukee .

Waukesha Tax Accountant Suggests You Shake Up Your Business Plans a Little

Mon, 07 Apr 2014 08:14:00 GMT

Yes, this is the last full week of tax season for Waukesha – area (the deadline is Tuesday the 15th, and you knew that, right?) — so why am I taking this time to write to you about your marketing and business strategy?

Because it’s the best way I know to keep my own iron sharp, both as a Waukesha business owner and a leader .

I get to be the one in our Waukesha tax accounting firm to keep our eyes focused in on what we do BEST. In fact, I was thinking about this very much over the weekend (between I.V. drips of caffeine), as we continued to serve our growing ranks of clients. Our inboxes are bursting, our file folders are swelled, and our families miss us.

And we keep going, with a deadline in sight.

But before I get to the subject of what I’m writing about, a few words on deadlines :

1) Tuesday, April 15 is the deadline to contribute to IRA’s, etc. in order to have them count on this year’s (2013) taxes.

2) It is also the deadline to claim the almost $800 million in unclaimed refunds for returns dating back to 2010. If you, for some reason, didn’t file for that year, you could be missing out. Call us for this special circumstance: (414) 545-1890
(Or for any other question — but again, bear with us, as we are extremely busy!)

And one last thing : if you have filed your taxes with us already, and you had a good experience, would you…

A) Write me back and tell me about it?

Here’s something you can say:

Or some such… thanks again! (And you can even tell them about what’s at the end of this email, if you so choose.)

Waukesha Tax Accountant Suggests You Shake Up Your Business Plans a Little
“I want to live life in such a way that if a photograph were taken at random, it would be a cool photograph.” – David Nicholls

We all get in a rut sometimes.

Week in, week out — doing the same old stuff, the same old way.

That’s one of the reasons I write these. They get me out of my day-to-day, and into thinking bigger for my Waukesha business and my relationships. I also like to get out and go to conferences (especially non-tax or accounting ones), and inject my professional existence with a little fresh thinking.

Well, I’m not the only one who needs a fresh practice, apparently.

Inspiration has many sources, some of them predictable, others a little more unusual. I recently came across these inspiring examples of offbeat creative practices by
geniuses past and present. Not sure I’ll implement all of them, but they’re certainly worth considering:

• Underwater thinking. Yoshiro Nakamatsu, a Japanese inventor, practices “creative swimming.” He jumps into his pool and makes notes on a Plexiglas board underwater while holding his breath. It must work: Nakamatsu has more than 4,000 patents to his name.

• Creative sleeping. Another famous inventor, Thomas Edison, is said to have taken short naps throughout the day. His technique was to sleep sitting up, with a handful of marbles in one hand. When they fell, waking him up, he’d immediately write down the first idea that came into his head.

• Isolation. The artist Jasper Johns lives in Connecticut, but he spends several months each year on St. Martin in the Caribbean. An assistant helps him prepare canvases and set up his studio, but after that Johns is alone to paint uninterrupted.

• And the really odd stuff. The German poet Goethe kept a rotten apple on his desk that, he claimed, helped him write. British novelist Charles Dickens insisted on a desk facing north whenever he wrote, and even slept in a bed aligned with the poles. And Miguel de Cervantes, Spanish novelist and author of Don Quixote, was said to immerse his feet and legs in ice-cold water when he wanted to think.

I would ask that you forward this article to a Waukesha business associate or client you know who could benefit from our assistance–or simply send them our way. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Waukesha families and business owners. And we always make room for referrals from trusted sources like you.

Warmly,

Dale Hammernik
(414) 545-1890

The post Waukesha Tax Accountant Suggests You Shake Up Your Business Plans a Little appeared first on Talking Tax to Milwaukee .

Straightforward Business and Financial Advice

Fri, 15 Nov 2013 02:16:00 GMT

Straightforward Business and Financial Advice

Talking Tax to Milwaukee

Shining Star

Mon, 11 Nov 2013 19:40:00 GMT

Shining Star

Talking Tax to Milwaukee

Makes the Tax Experience Less Painful

Mon, 11 Nov 2013 19:40:00 GMT

Makes the Tax Experience Less Painful

Talking Tax to Milwaukee

I’d Like to Talk About Your Business…

Sat, 02 Nov 2013 20:01:00 GMT

[pullquote cite=”Dale Hammernik” type=”left, right”]I know your business. Because we deal with clients like you all the time, I’ve got a leg up on all those “gurus”, since I’m right there in the trenches with you.[/pullquote]

Dale Hammernik here, your tax and accounting professional. I know that we haven’t posted much before, but starting this week I’m hoping that you and I can have a conversation about your business.

You and I both see the headlines. Questionable government decisions, taxes sure to rise in the next few years (whether or not it will really help the economy) your clients and customers are feeling a new pinch, and, well… overall the deck is stacked against small businesses like yours and mine. Right there in your neighborhood, I know that businesses could use a “shot in the arm”.

[content_band style=”color: #333;” bg_color=”#eeeeee” border=”both”][container][custom_headline style=”margin-top: 0;” level=”h4″ looks_like=”h3″]Not Just “Tax Tips”…[/custom_headline]

As I look over business tax returns and the books of our clients and associates, I often find ways to help the bottom line with little-known tax savings, etc.

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But I also see that if I could help “fix” sales, marketing, management and leadership problems for my clients it would go a long way to help. I don’t pretend to have all the answers, but I’ll pass along what I’ve seen work for me, and for other clients like you.

And, I’ll be frank …if I can help your business THRIVE during these economic times with my advice, it helps MY business. I like keeping my clients doing well, because it means that our services will be paid for! And as our clients grow their businesses, their need for our services also grows. It’s a true “win, win.”

But the problem is that there’s a lot of confusion out there about how to grow your business right -with cost-effective, powerful strategies which cut through the clutter and create sales. There’s a ton of so-called “experts” out there, and they often give conflicting advice.

So starting this week, we’ll be sending you notes and tips on a weekly basis-offering “Real World” Business Strategy (which you can use) and guidance for increasing sales, improving leadership, and all-around business growth and development. And I hope you’ll forgive me if I lay aside “accountant-jargon” and give it to you straight!

Here we go…

Dale Hammernik’s “Real World” Business Strategy

First Steps in This Economy / Getting To Know You

In the coming weeks, we’ll discuss both general concepts and specific strategies…but now, in this first week, here’s a good start (plus a question for you):

The fastest way to fix financial problems in your business is to fix the sales problem. Yes, I know-everybody’s business is “different”, but I’ve seen it across almost every business category: Make more sales and a host of problems disappear.

(Now for some of you, I know that your increasing marginal costs are making your sales less powerful, but we’ll address that in the future.)

So how do you do that? Well, there’s obviously a bunch of good answers to that question-but for a quick surge there’s three lists to get ahold of right now.

The first one might be obvious, but I’m continually amazed at how many businesses don’t maintain good records of their current customers. These are the easiest folks to sell to again. They’ve already indicated interest in your business, and have demonstrated it with their wallet. Go back to them this week with a promotion just for them, and the results will be better than any other list.

Good question, and if that’s the case: start one now . Whether it’s by giving an incentive at the point-of-sale or client meeting to have them provide you their details, or if it just means hiring a high school kid to compile all the data for you-this list is your most important asset in your business.

I’ll address the other two groups in the weeks ahead, as well as creative strategies for going after your existing customers, but I’ll leave you with this request:

Help Us Help Your Business!

Would you take a moment to drop us a line with one of the following?

Or

We’ll be back again next week!

Dale Hammernik

The post I’d Like to Talk About Your Business… appeared first on Talking Tax to Milwaukee .