Ensuring you have copies of your checks is very important

With the advent of Check 21, the set of federal regulations that electronicisized the banking industry, both business and personal banking accounts do not send your checks back.

I know “so what” just came to mind, but there is a very good reason for at least businesses to get their checks back. This is because they provide the ultimate proof of banking. There are three ways to ensure you get your checks back:
• The first is to make sure you get front and back copies with your bank statement. This usually costs around $5/month.
• The second is to get a monthly CD of all your checks from your bank. This service ranges in price from $25 to $35/month. Most banks provide this service.
• The third is to get a monthly DVD of all your checks from your bank. This service ranges in price from $25 to $35/month. Most banks provide this service.

Why is this so important?

I was just working recently with a client who had to supply checks to the IRS. They had to supply the IRS with front and back checks – about 100 of them. Their bank charges $2/check. Their bank statements only have front-of-check, which was NOT acceptable to the IRS. So, the client had to order all those checks – front AND back – for the IRS at $2/check – for a grand total of $400. Check 21 had rules about charging for this, and they have to charge a minimum per hour in order to copy all these checks. If the client had front-and-back service or monthly CDs, we would not have had to pay this high dollar amount for the check copies.

Sign up for my twitter, and when Amanda posts the banks and what they charge for this service, you’ll get notified. Then you can go to my web site and click on LINKS and get all the latest info on what small business banks, Wells, and US Bank are charging.

My Twitter is smallbizRSB

Until later
Terri Zeh Jacobson
Resources for Small Business</a

Credit card companies go wild

The number one complaint I have received this month has been about credit card companies. Nearly every person I have spoken to has stated that the rates on both their business and personal credit cards has risen from some low number to 30%. This is absolutely true on my own business and personal cards.

It truly doesn’t seem to matter what your credit rating is. This has happened to clients whose personal credit ratings are above 700. In fact, for those folks, they have told me that not only have they received the higher interest rate, they have also had credit lines cut, and further, there are fees for fees.

Here’s a sampling that Citibank has done for one of my cards:
They changed the rate to 29.9% (essentially $30)
• They now have a minimum finance charge of $2
• They have new late fees – $15 for balances under $100 (15%), 29 for balances up to $250 (12%) , and $39 (15.6% or less) on balances over $250.
• They now have a return payment fee of $39;
• They now have a cash convenince check fee of $39;
• Stop payment fees are $39;
• Their atm fees are 5% or $5, whichever is more;
• You authorize them to apply the payments in the most favorable way to them.
• They changed the arbitration agreement.

LOOK CAREFULLY FOR THE OPT OUT AREA. You have the right to opt out of this agreement. It is important that you do it in the way they instruct you in the instructions. They will then close your account, and you can pay that off in accordance with the old terms.

You also can call them and attempt to renegotiate the terms of this agreement. Usually, credit card companies are willing to renegotiate rates, so give this a try before you close your account.

The only way you can win using a credit card like this is to pay it early and for the full amount. You also need to take great care to not use the atm.

I noticed that the changes to their agreement are pretty common with what everyone else is doing. I will also tell you that the number one processor I get complaints about is Citibank. They process cards for bunches of companies, like Office Depot, Home Depot, Visa, Mastercard and more.

It seems like they are so used to making the maximum buck that they’re going to stick it to everyone in advance of the new laws that go into effect. So, we’re pre-paying for their usurious ways, it would appear. I hope they enjoy the part where I start closing cards and going to my bank.

I can’t comment on what might help you, but if you’re one of my clients, I may have an opinion about what you should do for your own situation. I can show you different options for you to select, and then you can pick the best one for you.

Until later
Terri Zeh Jacobson
Resources for Small Business

Credit Card & Banking Fees

With the long-awaited credit card reform now passed, the months are counting down before it’s effective date of July 1, 2010. Until then, it appears as though credit card companies and banks are trying to “recoup” their anticipated losses from fees that they have been charging in new ways.

Because of this, it is important that you obtain a list of fees your credit card charges you. You can get this simply by calling them. While you have them on the phone, why not also ask them for a lower interest rate? Most times, you can get this for the asking if you haven’t been late on a credit card payment in the last six months. The worst they can say is “no.”

Another thing we’ve been seeing recently with our clients is that banks are now charging their customers monthly fees to those who have never been charged before. We were surprised to see several of our clients in our area, with high balances in their bank accounts, be charged monthly fees ranging from $5 to $25. We see this frequently in accounts where no minimum balance is required, but seeing these fees in business accounts with high balances is new! Be sure to ask your bank for their most recent list of fees. I’ve found some of the bigger banks have more fees than smaller, but your experience may depend on the area you are from.

I saw a pretty good article on what’s new with credit cards for 2010, which I think every business person should read.

Until later
Terri Zeh Jacobson
Resources for Small Business

Budgets on TV and Personal Finance

Recently, I’ve probably watched more TV than ever. With the plethora of “reality” shows, reruns, constant news, and more, it’s refreshing when programs that are educational are aired. Suze Orman, the money guru who focuses on women and young people, has had many good shows.

Coming up this week on her regular show (I guess) on CNBC June 6 (6 pm CST), is her show entitled “The Cutting Edge.”
While on the personal side of money, this show focuses on what you should, and more importantly, what you should NOT cut from your budget at this time. I’ll be watching it, and I thought perhaps you might also be interested.

In other good financial news, the reports coming out of the Federal government today show personal savings rates this year at 5.2%. The design of our consumer economy generally discourages savings, so I feel really encouraged to see this number. It means people are “getting it” and taking care of themselves instead of binging on new material things. Remember, you should save at least three month’s living expenses in a savings account in case of emergency. These funds should not be used for new refrigerators or home improvements. They should not be touched unless there is a job loss or something similar.

Besides Suze Orman, I’ve seen many good programs on TV recently. Many of them discuss what we learn as children translate into our actions as adults. Schools do not educate children on how to handle money well. My personal recommendation is to first read “Rich Dad, Poor Dad” by Robert Kiyosaki, then to teach yourself, and finally your own children how to manage money so by the time your children leave your home, they are prepared to deal with the real world.

Until later
Terri Zeh Jacobson
Resources for Small Business

Penny Wise & Pound Foolish?

It’s important to know the difference between being penny wise and pound foolish in this current economy.

Examples of what I mean: – drive 5 miles to save 5 cents on gas;
- transfer a credit card balance to a home equity loan;
- writing your own contracts without an attorney reviewing them;
- doing your own corporate taxes rather than investing in a good CPA;
- leasing a car if you are a sole proprietor or individual rather than purchasing.

If you are in the process of cost-cutting, many businesses start with staff. If that’s where you started, remember to divide up your staff between production staff and support staff. Your clients should be paying for your production staff. If this is not the case, you either are overstaffed on the production side, or you are not billing properly. As far as support staff go, figure out who your most talented people are and lay off the ones that aren’t pulling their weight. This may mean that some support staff need to pick up some additional work for awhile.

When rehiring people, consider hiring subcontractors. As you sell more of their time, think about hiring the subcontractor as an employee. Remember, your employee is going to cost about 20% more than their stated wage.

Remember to keep an advertising and marketing budget to around 1-2% of your monthly income.

When purchasing assets (computers, furniture, vehicles, etc.), be sure to shop around. There are good values to be had right now. Again, be careful not to purchase old machines in favor of new ones unless their longevity can be established. We always recommend that you purchase new computers, for example, because their expected useable life is about 3-4 years. However, a concrete mixer has a longer life.

Once you’ve cut costs to live within your means, you really need to stick with it to ensure profitability. Anytime you have questions, you can always contact us at Resources for Small Business for more help.
Until later
Terri Zeh Jacobson
Resources for Small Business

Don’t forget to honor your Admin on April 22!!!!

It’s time to honor your Administrative Professionals in your office. At Resources for Small Business, we support so many of your companies, we often find that the hardest worker or the most valuable worker on your team is your Administrative Professional. I teasingly sometimes refer to my Administrative Professional, Amanda Nundahl, as my “right arm”. In a sense, she is.

Think of all the things this person does for you in your organization, and then think about what is that person deserving of: Flowers, a card, lunch? Some token of appreciation is highly recommended by yours truly: It could be the most motivating thing you do for that person this year. This goes even if your Admin is your wife or husband. In fact, sometimes that person does more than anyone and views the work as thankless or feels underappreciated.

This year, my Admin will be receiving a lunch in her honor plus a card. We let our Admins know how much we appreciate them all year long as well by thanking them or bringing positive feedback from clients to their attention.

If you’ve promoted someone in your organization from that chair to another chair, include them in any celebration as well for the time they invested in that position.

If you have a large group of Admins, taking them out to a restaurant might be too extravagant or not in your budget. A potluck or catered onsite lunch, boxes of chocolate, gift certificate or other smaller presents will be in order (make them the same, too. They will compare.)

Administrative Professionals Week is all this week, so if you don’t have time on April 22, be sure to do something within the week.

If you have someone on staff that is NOT deserving of an honorable mention because s/he is not doing great things for your organization, I think it’s time you replaced that person – seriously. Bringing up rewarding a person like this should bring positive thoughts about him/her.

For those who think that Administrative Professionals Day is just a creation of Hallmark Cards, this post is to let you know it’s not true.

Administrative Professionals Day was first know and Secretary’s Day and started back in WWII to expand the number of secretaries available in the military industrial complex and the armed forces to women.  Throughout the 1940’s this group, primarily women, grew at a rapid rate from the founding organization in Topeka, KS by Florence Overby and Anita Harwick, who were Women’s Army Corp Members (WAVES).

In 1981, this group changed their name to Professional Secretaries International, and they began requiring certification to become a professional member. In 1998, they once again changed their name, this time to it’s current name of International Association of Administrative Professionals (IAAP). They require certification of their members every five years.

More information and history can be found at www.iaap-hq.org
Until later
Terri Zeh Jacobson
Resources for Small Business

Poser Poster Notices

I received an officious-looking envelope from the PCI Compliance Service Department – Business Mail – Time Sensitive!  IMPORTANT! OPEN IMMEDIATELY.

To my chagrin, once more the Compliance Service Center is trying to sell me forms that you are required to post in your state.

If you use one of our payroll systems here at Resources for Small Business, you already get these for free.  If you don’t use one of our payroll systems, these posters are available for free.  You do not need to rush to send them the $35.95 for their all-in-one poster unless you WANT to.

Will the government ever check to see if you post their posters.  Absolutely.  If you ever are checked up on by the EEOC, Workers’ Compensation,  your state agencies or the IRS, they may look around your office to see if you have them up.  We’ve witnessed this.  But, this does happen rarely, and they often don’t look to see which version you have up.

So, don’t let the scare tactics of Personnel Concepts Compliance Service Department scare you. Only order if you really feel like spending $36 bucks for free stuff.
Until later
Terri Zeh Jacobson
Resources for Small Business

HR 6601 Small Business Tax Modernization Act

The Small Business Tax Modernization Act of 2008 is designed to decrease taxation to those small businesses. We’re all for that. After all, small business is America’s largest employer, and right now, America needs small business more than ever.

HR 6601 is being promoted by it’s sponsors as “simplifying” the tax code regarding deduction of entrepreneur’s homes for business use.  It will also allow more fully depreciation on cell phones and other similar telecommunications equipment.  There will be accelerated depreciation for energy efficient HVAC systems installed before 1/1/2012. They also will allow for better deduction of Meals & Entertainment, now only deductible at the 50% level if the owner is taking a client or employee out.

Part of the bill also includes allowing nonresident aliens to own S-Corporations. This means other country’s businesses could buy our small businesses. You can opine what you will. Personally, I favor keeping the S-Corp status for our own citizens. I am not sure how the Congress thinks this part of the bill will benefit Americans.

Watch what’s up with HR 6601.  It must certainly be watched closely for pork-barreling. Contact your congresspeople if you want to have input on the bill. On the left side of the congress page you can find your officials by entering your zip code and clicking “go.” This is a cool site, because you can email your congresspeople from the site or post your opinion on your congressperson’s site. It was used heavily by Americans during the election.

Until next time,
Terri Zeh Jacobson

Using Salon Transcripts STX remotely, VPN, Open Ports and more

Our company has worked with the Salon Transcripts’ STX software for about 7 years now. It’s a nice piece of software for Macintosh users that really allows you to track both inventory, your customer’s details, like color formulas, as well as staff schedules, payroll and more.

One of the things that is great is that it’s a multiuser package that also works with QuickBooks and MYOB accounting packages on the Mac. However, when you’re logging in remotely, the company generally recommends you open up some ports in order to get in.

Having worked with the software so many years, we can tell you the best way to do this is to actually use a VPN. Check out the TechSource IT site that talks more about this.

Salon Transcripts is a registered trademark of Salon Transcripts, Inc.

Innovation blog

Check out the innovation blog at Mark Zeh Innovation.

Until later.

Terri Zeh Jacobson