Professionals!
Please, someone, anyone, remind me that I’m a smart person. Because I’m surely not feeling it lately. There’s something about tax time that raises my self-doubt to the tipping point. (Or maybe it was the addition of a rough stomach virus that had me considering retirement yesterday…)
I just called Lauren at my payroll company because I received something from the Department of Labor declaring 1.90% as the minimum contribution rate for 2012 followed by the number 73. Huh? I brought this sheet to my accountant yesterday who referred me to the payroll people. I have no idea what this means. But when I called my payroll processor, she said, “Oh, no problem. Fax it over and we’ll make that change.”
There’s a high level of trust here, because I’m truly in the dark and don’t even want to ask the first question. Do you EVER feel like that?
My meeting with my accountant went well. Until I got tripped up on the part where he said that the charitable contributions I’d made aren’t business expenses, but are deductible in another way. What’s the difference?
If you’re reading this and thinking, “But, Jane, everyone knows this stuff,” please give me a call and really dumb it down for me.
What I’m really curious to hear about from you is: what puts you over the edge? We’re all operating at such a high level in so many areas of our lives. When I’m tripped up by my lack of knowledge, I don’t want to minimize my brilliance, as I am wont to do. I’ve got good recovery skills, but would love to prevent the deep dive.
What I’m truly grateful for is that there are professionals out there who can guide me through…and not judge me. I don’t have to understand it all, so long as I have good people in place who do.
Hi Jane! Charitable contributions are considered “draw”- personal and therefore not business expenses. Deductible on Schedule A, not Schedule C, unless you are a C Corporation. Does that make it clear as mud? It’s helpful to follow the deductions directly to your tax returns to understand how it works.
@Sharon
Wow! I shut down around Schedules and letters. It’s my resistance, and I know it. Thanks for explaining it so clearly. I need to see it to understand it. This helps.
Hi Jane- tax stuff drives me up the wall,too. I just try to remember that my accountant couldn’t even begin to paint a painting-which I do every day and get paid for :). We all have our gifts. Right now I’m struggling with trying to keep up with all the social media-when I’d rather be painting!
Feel for you, Jane. I did the same a few years ago and my accountant straightened it all out for me. Sharon gave you a great explanation.
I am tremendously grateful to both my accountant and bookkeeper for filling in this knowledge gap, because this is the piece of my business that puts me over the edge too. I have been resisting putting together a complicated and lengthy invoice until yesterday when I made myself do it before anything else. This is the next thing I am hiring out!
No, not everyone knows this stuff. The analogy I use when something is overwhelming me or someone else, particularly clients, is simply this “If you had a leak in the toilet would you fix it yourself or call a plumber?” Each of us has our strengths and our training. I am pretty sure my accountant didn’t decorate his own living room.
@Sandy
I so hear you!
@Catherine
What you’re saying is absolutely true. But I have trouble giving myself permission because it’s one of those ‘shoulds’. Somehow I don’t feel I should know how to plumb a toilet, but handle a Schedule C…That’s a different animal. Thanks for the reminder.
Jane, I have a great quote on my frig! It says:
“Everybody is ignorant…. but only on different subjects.
Wisdom consists in knowing WHAT TO DO with WHAT YOU KNOW.”
I am so on board with that! I just wish I knew the author so I could give due credit.
I agree with Sandy and Catherine above. Remember Orville Reddenbacher? He always said, “Do one thing, and do it better than anybody else.” I bet he relied on his accountant and focused on perfecting pop-corn ~ which I enjoy almost every night! Thanks, Orv!
As the King of Pop said, “You Are Not Alone!” Anything related to finances for my business leaves me glazed over whether it be when/how to charge sales tax to full understanding all of my expenses. It’s probably why I did not do well in my high school bookkeeping class! This is why there are all types of gifted people in the world. You have yours and the accountants have theirs – thanks goodness! Great post as always – thanks for sharing!
Jane, I just added employees this year and sat with my new payroll service to go over what that means. She started rattling off the forms that would have to be filed and taxes paid until she saw the glazed over look in my eyes. When she paused at that moment, I said, “what do I need to do with all that?” and she replied, “you need to have enough money in the checking account to pay the bills” I was very happy at that moment, because I am good at what I do and can make money in my business. My payroll person is a friend that I’ve met through networking and I trust her implicitly. Same goes with my accountant. I do not have any business training (MBA or such), but understand the important things like great customer service, honesty and integrity.
The best advice I can ever give to someone starting out in business is this: “Know what you do well and structure your business so you are doing that. Find qualified, trusted people that you can hire to do the rest”.
When you do this, you are 1) helping other people in business; 2) building a referral network; 3) decreasing your frustration level and most importantly, 4) connecting with people who will want to help you grow your business.
@Janet
Brilliantly said. Thank you!