| NEWSLETTER
Volume 3 - 2007 |
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| How
Good Is Your Customer Service Really? |
You might have
the most wonderful product or service on the planet, but, unless
you provide customers with good service, real success probably will
remain elusive. Here are a few questions to help determine if your
customer service is tip-top or if it needs some improvement.
- Do your employees really put the customer first?
Before their coffee break or a personal phone call? Do they truly
recognize that customers pay their salary? There are few things
more annoying to a customer than a sales-person who ignores them
preferring to complete some paperwork instead, or who refuses
to have eye contact with hovering customers. If it is necessary
to make a customer wait, make sure your employees understand that
some form of acknowledgement - “I will be with you in a
moment…” or short explanation might be the differ-ence
between making or losing a sale.
- Are your staff good listeners? Asking the customer
questions to find out what they need is one thing. Really listening
to their replies - what they say and what they do not say - to
point them to their best options requires a salesperson’s
undivided attention. First-class sales people pay full attention
to the customer they are helping. They do not “multi-task”
or get side-tracked by other inquiries from co-workers. They avoid
making assumptions, and know that potential customers frequently
do not know what various product features or benefits might be
available. Savvy customer service pros know many customers will
“upgrade” to a premium product or service line, if
the salesperson takes the time to listen and understand their
specific needs.
- Do your employees know why their customers are buying?
It might sound silly, but most people are less concerned with
the idea of acquiring stuff or obtaining specific services than
with finding solutions to problems or discovering products/services
that make them feel good. Most purchase decisions are emotional
in nature. This is true whether a customer is buying a luxury
automobile, landscape services, or dental implants. The best customer
service professionals identify appropriate solutions and anticipate
their customers’ needs.
- Are complaints dealt with cheerfully and promptly?
Whether the complaint is justified or not, every problem gives
a salesperson the chance to make a good impression on a customer.
Help staff to see the positive aspects of the complaint process.
Complaints give a business the opportunity to fix problems and
to improve. Encourage sales people to give complainers the opportunity
they seek to vent, and suggest they avoid justifying or arguing.
Apologize promptly when things go wrong, and be forthright in
accepting responsibility for the issue at hand.
- Is it easy for customers to give you feedback?
Suggestion boxes that never receive attention from management,
or feedback forms that never find their way to the back office
are worse than nothing at all. Provide customers with the means
to contact you, or a senior manager, directly with concerns, suggestions,
or compliments. Be proactive and contact customers yourself from
time to time to ask what they think.
And finally, do not forget those on the front line. Employees who
work in an atmosphere where mutual respect and team work are actively
encouraged are much more likely to treat customers with appreciation.
If your sales-people feel valued, it will show in their daily work.
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| It
Is Not Your Parents’ QuickBooks Anymore
By Mike Jacobson, CPA, Supervisor
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There are many new features
in the latest version of QuickBooks (QuickBooks 2007) that make
life easier for the small business and for the accountant.
Easier QuickBooks startup interview and company setup
-- just answer simple questions in a step-by-step interview using
clear and simple language. There are different charts of accounts
customized for different industries which are easily modified to
meet your needs.
Simplified bill paying -- QuickBooks remembers
the account selection for each vendor so when you enter a bill that
information will be entered for you. Be sure to watch if you make
payments to one vendor which may be posted to several different
account numbers -- you will need to select the proper account posting.
Also the pay bills confirmation window displays a list of the bills
you have successfully paid and alerts you of any bills that did
not go through.
Securely search QuickBooks with Google Desktop
-- quickly find your QuickBooks data, such as customer, vendor,
or financial information. Intuit can install a customized version
of Google Desktop to ensure your privacy and make your computer
information available only to authorized users on your desktop.
Improved shipping manager -- enhancements include
multiple packages from a single shipment, third party billing, and
support of thermal label printers for shipping labels.
Changes in Accountant’s Copy -- allows for
improved communication between the accountant and the client. The
accountant can review, correct, and complete their clients’
accounting data while the client continues to operate their business
and record transactions.
There are three caveats if you are running older versions of QuickBooks.
First, if you are planning to upgrade your browser to Internet Explorer
7.0 to take advantage of the security and other new features you
should be aware that QuickBooks 2004 and older versions will not
be able to work with IE 7.0. Intuit is no longer providing support
for versions prior to 2005 and will stop supporting that version
in the next few months. Thirdly, QuickBooks version 2006 and earlier
will not work with Windows Vista. We recommend that you upgrade
your system to QuickBooks 2007.
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| Solo
401(k) |
| As the sole owner of your business,
you may wish to consider the implementation of an individual 401(k)
retirement plan to accumulate retirement savings on a tax-deferred
basis as part of your year-end tax planning.
As a self-employed taxpayer, you may now contribute to a sole-owner
401(k) retirement plan as both an employer and as an employee. As
an employer, you may now contribute up to 25% of your total income
to your retirement plan, and, as an employee, you may also contribute
up to an additional $15,500 ($20,500 if age 50 or older) in 2007.
Total contributions to an individual 401(k) plan for 2007 cannot
exceed 100% of pay up to $45,000 ($50,000 if age 50 or older). This
significant change provides you with an additional opportunity to
maximize your yearly retirement plan contribution. As an added bonus,
this type of plan, unlike other retirement plan options, allows
participants to take out loans from plan assets.
If you have any questions about individual 401(k) plans or if
you require assistance with setting up a plan, please contact
our office to make an appointment to discuss this important retirement
tax planning opportunity.
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| Five
Employee Pitfalls On The Job |
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If you are not watching how you work, how you act, how you
speak, and how you dress, you could be sending a signal that
says, “When it is time to cut someone, choose me.”
Ronna Lichtenberg, author of It’s Not Business,
It’s Personal: The 9 Relationship Principles That Power
your Career, says you can make yourself indispensable
by avoiding these mistakes: |
- Not pitching in when others ask for help is a mistake. The busier-than-thou
attitude does not make allies.
- Taking everything personally is a mistake. Some decisions must
be made without regard to whether your work is appreciated. Your
idea may have been passed over, but do not think it is because
the boss does not like you.
- Confusing business with pleasure is a mistake. At office functions,
mingle with people at your level or above, people who are in a
position to promote you. Know the difference between business
and socializing.
- Seeking perfection is a mistake. Know the difference between
having to be perfect and striving for excellence. Be willing to
take on new duties. If you make a mistake, admit it and find a
solution.
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Neglecting your appearance is a mistake. Many
bosses think your appearance is a reflection of your work.
*************
Why do people who know the least know it the
loudest?
George Carlin
*************
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| New
Electronic Filing Requirement For Small Tax-Exempt Organizations |
| Beginning in 2008, small tax-exempt
organizations that previously were not required to file returns
may be required to file an annual electronic notice, Form 990-N,
Electronic Notice for Tax-Exempt Organizations Not Required
To File Form 990 or 990-EZ. This filing requirement applies
to tax periods beginning after December 31, 2006.
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Small tax-exempt organizations, whose gross receipts are normally
$25,000 or less, are not required to file Form 990 or Form 990-EZ.
With the enactment of the Pension Protection Act of 2006, these
small tax-exempt organizations will now be required to file
electronically Form 990-N, also known as the e-Postcard, with
the IRS annually. Exceptions to this requirement include organizations
that are included in a group return, private foundations required
to file Form 990-PF, and section 509(a)(3) supporting organizations
required to file Form 990 or Form 990-EZ. |
The Act requires the IRS to revoke the tax-exempt status of any
organization that fails to meet its annual filing requirement for
three consecutive years. Therefore, organizations that do not file
the
e-Postcard (Form 990-N), or an information return Form 990 or 990-EZ
for three consecutive
years, will have their tax-exempt status revoked as of the filing
due date of the third year.
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| Pay
Off Your Mortgage Before You Retire |
More Americans are quitting the work force without
retiring their mortgages. The most recent Federal Reserve survey
shows that 32% of households headed by someone age 65 to 74 were
carrying home-mortgage debt.
That could be a mistake. Consider this scenario: Two retired couples
have income of $16,000 from Social Security and $24,000 from individual
retirement accounts.
The couple without a mortgage would be taxed on their IRA withdrawals,
but with the standard deductions, they would owe only about $600
a year in federal taxes, leaving them with $39,400 in after-tax
income.
The second couple took out a $200,000 30-year mortgage at age 50
that costs $1,200 per month until age 80. The interest deduction
does not help because by the 16th year of their mortgage, just $8,400
goes to interest. Added to other deductions, they will have little
more than the standard deduction taken by the first couple.
To match the first couple’s standard of living, they have
to make large taxable withdrawals from their IRA. The withdrawals
would drive up their total income, triggering taxes on Social Security.
They would need total pretax income of more than $58,000 to have
the same standard of living as the first couple, and they would
pay more than $4,300 in federal taxes.
To pay off a $200,000 30-year fixed rate mortgage at 6% with a
$1,200 payment: Add $50 a month to pay off the loan in 27 years.
Add $200 a month to pay off the mortgage in 21 years. Add $500 a
month to pay it off in 15 years.
Calculate your own time frame and payments to see what you could
do.
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