Vol. 13 No. 1

January 2014

"Far and away the best prize that life offers is the chance to work hard at work worth doing."

~ Theodore Roosevelt (1858 - 1919), 26th U.S. President

4 Ideas to Simplify Deductions for Business Driving

Almost all businesses entail some driving by owners and employees. The cost of using personal or company vehicles for business driving can add up. For example, car and truck expenses were the largest deduction category for sole proprietors on 2011 returns without regard for cost of goods sold (the most recent year for statistics). There are actions you can take to make things easier for tax purposes when vehicles are used for both business and personal driving.

1. Use the standard mileage rate.

Whether you own or lease the vehicle, you can use an IRS-set rate to account for the cost of business driving. For 2014, the rate is 56¢ per mile.

Using this rate eliminates the need to keep receipts for gasoline and other vehicle costs. You still need to track the business mileage, including miles driven, the date, destination, and purpose of each trip.

Read More...

3 Things You Can Do to Protect Your Business from Cyber Attacks

Statistics from a Verizon report show that small businesses (those with fewer than 100 employees) are at greater risk of experiencing a cyber attack than larger companies. Attacks can result in liability for exposure of sensitive information about employees and customers; they can also disrupt your online activities, preventing you from servicing customers.

Altogether, a cyber attack can besmirch your good name and harm your brand image (I'm sure that Target wishes it had been better prepared to withstand a cyber attack). While you can't ensure absolute protection, you can go a long way in shielding yourself from vulnerability.

1. Limit stored information.

If you don't store it, crooks can't hack it. Don't retain credit card information for customers. Limit the information you retain on employees to what is required by law.

Read More...

Obamacare Rollout Debacle: 4 Lessons
for Small Businesses

The failed rollout of the federal website, which was supposed to be fully operational on October 1 for use by millions of Americans buying health coverage for 2014, was catastrophic for those who wanted or needed to buy a policy.

For small businesses, the rollout debacle and the information obtained through Congressional hearings about the rollout provides four valuable lessons of what not to do.

Here's my take:

1. There must be a leader.

A big project -- whether in government or in business -- can't proceed without strong leadership. Someone has to oversee activities to make sure that deadlines are met, quality is assured, and the goal is met.

2. Deadlines must be realistic.
When a business has a project, it sets its own deadlines. The dates fixed for a project should be realistic in light of the work that needs to be done.

Read More...

Our Readers Ask

Q: I was supposed to take a business trip but had to cancel because of bad weather in the city I was traveling to. It cost me $200 to reschedule my flight (the airline wouldn't waive it in my case), and I also lost the deposit for one night's stay in a hotel. Are these costs deductible?

A: Yes. These are ordinary and necessary business expenses that you can deduct. Be sure to document the expenses with good recordkeeping. Find help in my book, J.K. Lasser's Small Business Taxes 2014, and in IRS Publication 463.

Book Review

The Myths of Creativity: The Truth About How Innovative Companies and People Generate Great Ideas

David Burkus ~ Jossey-Bass ~ Hardcover: $25.95

Everyone in business today has to continually come up with great ideas to market themselves and run their company effectively. My business -- Big Ideas for Small Business, Inc. -- is founded on ideas. Unfortunately, some myths about creativity may hinder the creative process.

The book shows that you don't have to be a muse, or have one, to generate ideas. And you don't have to believe the myths about ideas. For example, the author notes that there's a brainstorming myth that creative activity emerges in rapid-fire time, but in truth, it requires more than the frenzied generation of ideas. The book debunks the myths and shows you how to overcome the obstacles that may be impeding your creative processes.

My favorite myth debunked: Build a better mousetrap and the world will beat a path to your door. The reality: Of the 44,000 U.S. patents issued for "better" mousetraps, only about 20 were commercially viable. The public doesn't necessarily embrace change. The author's conclusion: "We don't just need more great ideas; we need to spread the great ideas we already have."

In This Issue

4 Ideas to Simplifiy Deductions for Business Driving

3 Things You Can Do to Protect Your Business from Cyber Attacks

Obamacare Rollout Debacle: 4 Lessons for Small Businesses

Our Readers Ask

Featured Book Review

It's a Fact!

Quick Links:

Barbara's Website

Idea of the Day®


It's a Fact! Business Bankruptcies Down In fiscal year 2013 (ending September 30, 2013), the number of business bankruptcies declined by about 18%. In FY 2013 there were 34,892 bankruptcies, compared with 42,008 in FY 2012. *Source: IRS*

Don't miss out -- get your

"Big Ideas On the Go!"
Find your Idea of the Day® and all the latest news and information from Big Ideas for Small Business® on your mobile device!

The Living Edition of my new book is available on Amazon now! New chapters are added at no additional cost.

Did You Know?

You can find all my radio interviews on wsRadio.com, and listen

at your convenience -- 24/7 -- to great discussions with small business owners & entrepreneurs to help you in your business today!