The Tornado recently in Moore, OK reminds us of the devastating effects a natural disaster can have on a community. Just as families are working to rebuild their lives, so too are the small businesses that were impacted by the storm.
Kai Ryssdal of American Public Media’s Marketplace interviewed a business owner in Moore, Oklahoma whose business was completely destroyed by the tornado. In the interview, Kai asked the business owner about her business forms and client records. She responded by saying:
“Luckily I did find my [client] records, and I have a CPA offsite … that was the saving grace because I didn’t get the computer backup.”
Regardless of scale, natural disasters have proven that even traditional backups can fail. For instance, say your office experiences a fire, flooding, or even an earthquake, and everything is damaged. Your paper records are gone and your computer equipment is unsalvageable. You can’t rely on keeping your most important business information backed up on an external hard drive. Storing your information with an offsite financial professional can help by protecting your mission critical data so that when it is time to reopen your business, you have all the information you need at hand.
Outsourced Bookkeeping Gives You Peace of Min
via Outsourced Bookkeeping Provides Safe Keeping For Your Business’s Financial Data.
Mistake 1: Only saving what’s left over
Do you continue to worry that you’re not saving enough? Do you routinely rely on credit rather than cash to pay for the things you want or need? Rather than blame your financial inertia on your income, look a bit deeper, because the real culprit may be the lack of financial priorities. If you don’t know exactly how you’re spending your money and you haven’t set financial goals, it’s unlikely that you’ll see much financial progress.
Go back to basics by preparing (or reviewing) your budget. If you tend to save only what you have left over every month, you can put yourself on a more disciplined course by having a fixed amount taken out of your paycheck automatically for retirement. Or, you can set up automatic transfers from your checking account to a savings or investment account.
Mistake 2: Not having an emergency fund
One lesson that you may have learned over the past few years is that the job market isn’t stable. That’s a major reason why one of your savings priorities should be an emergency fund. While it isn’t glamorous, this underappreciated workhorse really pulls its weight during hard times. Having cash on hand that you can use for an unexpected expense, or to pay bills if you lose your job, is vital because it can help you avoid having to rely on credit or tap your retirement savings. If you don’t have emergency savings to fall back on, a minor money shortfall can quickly turn into a major cash crisis.
Mistake 3: Not asking for help
Even if your finances are in good shape right now, you may be overdue for a checkup. Reviewing your finances is especially important during periods of volatility because it can help reveal potential strengths and weaknesses, and identify changes you might need to make to adjust to the current economic climate. And if you’re already in financial trouble, don’t let fear or shame prevent you from asking for help. Facing financial problems early may help you make a full recovery. Many creditors are willing to work with you, but this may be much easier while your credit is still good, and while you still have time to turn things around.
via Four Money Mistakes You Might Be Making – 360 Degrees of Financial Literacy.
I hadn’t thought about all of these, and thought others might find this interesting. I can’t recommend #5 IRS Credit option, though. Why let them hang onto the money? We can hang onto it just as easily, and I have an interest-bearing checking account, at least. The IRS doesn’t pay interest.
6 ways to get your tax refund – IRS options – MSN Money.
THE BUSINESS OF WRITING is now available for purchase at Amazon. This electronic book is geared specifically to the needs of writers and their business.
Most writers are imaginative people living vicariously in the wonderful worlds they create. Words are their tools and their joy. Numbers are another story. The idea of balancing a checkbook, filing taxes or anything financial besides cashing royalty checks is something they either love (not often), HATE, or just don’t really get or care about.
THE BUSINESS OF WRITING will make managing the financial side of your career as straight-forward as writing “The End” on your latest creation.
You need to know what’s happening with your money. If you find you are perfectly capable of doing the work yourself, but you just don’t want to, THE BUSINESS OF WRITING will show you what you’ll absolutely have to know when trusting someone else with your money. There are too many horror stories about people entrusting their finances to an “expert” only to find themselves mismanaged, robbed or flat broke. You don’t want to be that writer, and I don’t want you to be that writer.
You’ll learn all these things:
1. What expenses are specific to writers–when they are deductible and when they aren’t.
2. What receipts you need and how long to hold onto them.
3. What financial rules pertain specifically to writers.
4. What the Hobby Loss Rule is and why you need to know about it.
5. How you can get all of your financial paperwork organized once and for all.
6. How you should be organized—-Sole Proprietor, General Partnership, C corporation, LLC, Subchapter S Corporation–and why.
7. And much, much more!
BONUS! Along with the purchase of THE BUSINESS OF WRITING, you’ll receive links and references for important financial and tax information essential for running your business as well as FREE DOWNLOADABLE FORMS to use in preparing your own Money Journal, the key to your financial success.