Have you checked your QuickBooks Profit and Loss report lately? Sometimes having a few additional business expenses may make the difference in what your tax bracket your net income falls into on your personal return.
The object is not to just spend money but to make an intelligent decision on where and what to spend your money on. Unless you have lots of it (money) most business owners think carefully before making larger purchases.
Purchase New Business Equipment
Section 179 Expensing. Business should take advantage of Section 179 expensing this year for a couple of reasons. First, is that in 2012 businesses can elect to expense (deduct immediately) the entire cost of most new equipment up to a maximum of $139,000 for property placed in service by December 31, 2012. The maximum threshold amount for capital purchases in 2012 is $560,000, but in 2013, that amount drops to $25,000. Also in 2012, businesses can take advantage of an accelerated first year bonus depreciation of 50% of the purchase price of new equipment and software placed in service by December 31, 2012 that exceeds the threshold amount of $560,000. This bonus depreciation is phased out in 2013.
Qualified property is defined as property that you placed in service during the tax year and used predominantly (more than 50 percent) in your trade or business. Property that is placed in service and then disposed of in that same tax year does not qualify, nor does property converted to personal use in the same tax year it is acquired.
Definition of Business Equipment, typically a construction contractor will think about their “Tools Of The Trade” which translates into what is needed on the job. These types of tools are always important for the efficiency of the “Job To Be Done”
First Thought is do I have the latest cell phone? Have I downloaded all the FREE apps? There are some good low cost apps and one of them is TurboScan.
Second Thought is a Notebook or better yet a Tablet PC.
Last on the list usually is good equipment that stays in the office. Can you create that bid in an efficient manner on using your cell phone app? If the answer is yes Keep doing what you are doing. All is well!
Good equipment in the office saves money in the area of productivity. Understanding what Ten Minutes Costs Your Company is a real eye opener and help understand the value of Business Process Management For Construction Company Owners.
Does your computer have enough RAM? Think for a moment on how many other things can you do while waiting for our computer open a document, save a file and my un-favorite pastime, installing updates, cleaning cookies and temporary files.
Do you have up to date software? Being able to Scan, Print, and save documents in a PDF format is becoming a must. Snagit by Tech Smith is a great tool. The alternative use of your time is more and more valuable with higher fuel costs. See our report on What 10 minutes is costing your company.
Examples of Office Equipment.
Desktop Computer
Laptop or Tablet
Printer
Fax
Scanner - Converts to PDF, Email, Automatically Send To Paperless Server Learn More.
Fax Machine may seem like old technology and a too old fashioned. Reality when all else fails the fax machine is the business solution. Numerous large businesses will request documents filled out and returned via FAX. The fax machine can be used on all traditional phone lines. Actual telephone provider may be Verizon, Frontier, etc or internet lines such as Comcast.
Final Thought! There are several parts to the job. One is Field or “Doing The Work: the other is Office where the estimating, billing happens. For most of us The Money Coming In takes a little more work than The Money Going Out and a couple of transition tools help bring in the funds which equals Cash Flow.
Wireless Credit Card Terminal
How many ways to do receive payments from your clients?
Like the cell phone a wireless credit card terminal is something that you can take everywhere.
Wireless terminals are battery powered, works on all cell phone towers. It can be used as a wired terminal by using a traditional phone jack and plugging it into any wall outlet.
Cell Phone Card Reader
Adding a cell phone card reader and receive credit card payments using your cell phone (initial cost of the adapter is less; downside is that transaction fees and discount fees are usually higher)
Banks promote saving a trip to the bank by snapping a picture of your check and using an app to send it.
Technology is a wonderful thing; hackers love it. The object is to choose the right business tool for you.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/