Archive for Pro Tips
So, you’re sitting there trying to decide how to finish your tax return without all the information you’re missing or not sure of, right?
Well, take a breath - and get an extension.
Your tax software service can probably do it online. If not - use Form 4868.
If you have a partnership or LLC filing as a partnership, or an estate (Form 1041) or trust (Form 1041), use IRS Form 7004.
The extensions are automatically accepted - no approval needed. Good for 6 months.
BUT, if you owe money, you need to pay. Drop by TaxWatch article at MarketWatch.com (it’s written by me) for tips on how to pay - especially if you don’t have money right now. In fact, read it BEFORE you finalize your tax return. You’re going to find one last way to cut last year’s taxes. But only if you put your tax return on extension.
Oh, let me dispell a rumor I just heard about extensions and the Stimulus Rebates. Some fool is spreading the rumor that you won’t get your rebate if you put your return on extension. That’s utter nonsense. You’ll get it. Perhaps a bit later. But it will come.
Happy Tax Day!
So there I was in McDonalds (shhhh, don’t tell) and I’m waiting in line and, honestly, I’m starting to get a tad cranky because well, if it’s called “fast food” shouldn’t it be FAST!
Well, on this particular occasion it wasn’t all that fast and my hunger pangs, magnified by the seductive smell of the fries, got me into a hyper critical state and I’m thinking all sorts of negative thoughts until I start to observe what’s going on around me.
Heck, from what I saw, those counter folks were doing things right. You might have some issues with the food itself, but the service and the sales techniques…those were right on target.
Here’s what we should learn from McD’s:
Do You Want Fries With That?
When you order a burger and the counter person asks “Would you like fries with that,” you’ve experienced a marketing tactic called cross-selling. This strategy encourages customers to purchase additional products and services that are related to the item they are already buying. Cross-selling doesn’t just work with fast food; it’s also a highly effective technique for any type of sales. Here are a few ideas to help you achieve cross-selling success in your business:
Service with a Smile
The success of cross-selling depends not only on the quality and value of the product, but also the customer service provided. Customer service begins with the very first encounter, either in person, through email, or on the phone. It’s true that you only get one chance to make a first impression. Every customer should always be greeted with enthusiasm and respect.
Listen to the Customer
Many sales opportunities arise by just listening to the customer. The simple skill of listening demonstrates that you are helpful and approachable. A good salesperson should be able to take information from the customer and inform them of all the products and services that would be benefit their needs. Customers appreciate being informed of additional products and services that could provide an added benefit to the item they already intend on purchasing.
How Well Do You Know Your Product?
Product knowledge is the key to successful sales. Successful salespeople know every detail of their products from how they work to when to use them. It’s essential that this knowledge be relayed to the customer to help them understand why they can benefit from your product. The product you are cross-selling should either be related or complementary to the original item the customer purchased. It’s unlikely to sell an add-on product or service that offers no additional value to the original product.
Don’t Forget to Ask
Many customers walk out the door without ever being asked whether they could benefit from related products. It should go without saying, but it is necessary to ask the customer whether they are interested. Even the best products and services won’t sell themselves. Sales must be initiated.
Follow-up
Numerous cross-selling opportunities are lost because the salesperson didn’t take the initiative to contact the customer regarding their original purchase. A quick follow-up call shows the customer that you truly care about their needs and not just the initial sale. This is a perfect time to find out whether they could benefit from related products or services. This simple act will open the door to a long-term sales relationship.
Everyone knows usability is important, but not everyone knows exactly how to go about determining if their software/web/hardware product is indeed usable. As a professional usability consultant, I would (ahem) advise that you seek the aid of an experienced usability consultant to help.
This isn’t always a practical option for lots of reasons though, so what I’d like to offer are some pointers and practical things to keep in mind when you’re developing a website or any other interactive product.
Know thy user
Above all else, always try to keep this mantra in mind when designing or developing — you are not your user. What’s obvious and simple to you may not be for the people who will be actually using your product.
By the way, you do know who you’re designing for, right? Do you know something about their skill level, geographical location, wants and needs as they relate to your product? If the answer is no, I’d suggest doing some research and asking some questions to find out.
Use established interaction standards to your benefit
If you have a choice between inventing a new, cooler way to sort tables and using the more well-known method of clicking on the column header, use the latter. Chances are that people will be familiar with this paradigm and less likely to become confused.
Now for a caveat — don’t let adherence to standards stifle your creativity and innovation. It might be the safer road, but it’s not always the best choice, so think of it like any other rule of law — sometimes it’s best to break the rules, just do so wisely!
Subscribe to usability-related RSS feeds
This is a great way to keep on top of what’s being discussed in the usability, interaction design and user experience realms. It’s also an easy way to learn and internalize what’s working and not working for others.
Some of my favorites:
Sanity-checking your design is not usability testing
Don’t get me wrong, grabbing someone next to you and asking “does this make sense to you?” is often a good idea. But just don’t let this turn into “yeah, I showed it to some people and they thought it worked okay.”
There are many reasons why this type of information-gathering could lead to bunk conclusions, but primarily it comes down to the first axiom I discussed — the person in the next cube, down the hall, etc. is most likely not your target user. If they’re a software developer like you are, and they think it’s easy to use, your user may beg to differ.
More usability guidelines
These pointers are just the tip of the iceberg. If you’re interested in learning more, there’s a lot out there but I’d suggest starting with (and referring to often) this site. It contains a ton of good info for those just starting to think about usability and seasoned professionals alike.
Again, these are just some quick pointers and guidelines. There’s a lot more to the multi-faceted study and practice of usability and user experience, but hopefully this can get you started in the right direction!
FreshBooks welcomes Adrian Miller as our newest guest contributor to Fresh Thinking. Adrian will share the wisdom garnered from her many years of experience in sales training.
In her first post, originally written for CustomerThink, Adrian gets us thinking about our sales methods. Next month will bring the first of her many original contributions to Fresh Thinking.
No, that title’s not an error.
My question isn’t about your goals, your aims, your vision, your mission, your business plan, your targets, or any of that other stuff that comes together and answers the question of why you are in business.
I’m here to ask you, specifically and simply: how are you in business?
What are you like?
Are you pleasant? Are you responsive? Are you fair? In how you are in business, do you demonstrate that you care about helping people with whatever solution you provide? Do you give your customers a reason to be glad that they do business with you? Would you buy from yourself?
Here’s the thing: business culture today is so focused on the target/goal/objective, that the means of achieving those ends — the ‘how’ of business — is often an afterthought. In fact, sometimes the ‘how’ is not thought of at all, and so it becomes utterly subjugated, sacrificed and snuffed out in a relentless — arguably obsessive — pursuit of the bottom line, of exclusively measurable outcomes. The ‘how’ becomes nothing but a necessary evil between you and the ‘why.’ And like all necessary evils, you treat it with resistance, contempt and disdain.
Focus on the ‘how’
I’m not saying every single customer you meet should receive flowers or a ticker-tape parade (”Hooray! You’re our 9th customer today!”). I’m saying that the ‘how’ of your business is as essential as the ‘why.’ The ‘how’ matters. It’s important. Your customers deserve more ‘how’ from you. And if they get a taste of it from your competitors, they’ll come to expect it from you, too. If you don’t have the ‘how’ of your business in shape, you’ll lose them. And who can you blame for this other than yourself, and your anti-’how’-ism?
So. What can you do to inject some high-quality ‘how’ in your business?
It’s easier than you think. Simply start here:
- Don’t act like you’re doing your customer a favor by selling to them; guard against this especially if, right now, you’re very busy and your stuff is in high demand. Business is a cycle; you’ll come down to earth sooner or later, and the trail of pissed-off prospects in your wake won’t care to help you get back up.
- Don’t ever confuse soft-selling with that ugly creature called “anti-marketing”; the former is an authentic and empowering way to develop a relationship with a prospect, while the latter is an invention of miserable, self-absorbed people who should be in deep, multi-discipline therapy.
- Focus on two fundamental aspects of customer happiness: their happiness with the sales process, and their happiness with the solution they buy from you. When people engage in word of mouth marketing, they often emphasize the ‘how’ of the sale more than the ‘why’ or the ‘what.’
- Remember your customer’s name! Don’t be afraid to ask for it if you happen to forget, because nothing is worse than getting a name wrong; it’s sloppy. If you can remember your own name, you can remember someone else’s.
- Make sure the colleagues around you support your efforts to develop a quality sales experience; don’t have Sarah from shipping or Joe from accounting running around, madly waving a waybill the air, while you’re trying to talk to a prospect about your “total commitment to customer service.”
See? Simple things.
Start with these, and build a ‘how’ consciousness into your business. Don’t take my word for it, just see for yourself. You’ll soon see that a better ‘how’ leads to a better everything else — including a better bottom line.
Serving your customers comes down to keeping your promises. You honour your word. You honour your commitment.
This isn’t about contracts and terms. It’s not about performance reviews. It’s not about call centre metrics and wait times and phone queues. It’s definitely not about policies.
Customer service is all about — only about, exclusively about — keeping your promises. Honouring your word, your bond, your commitment.
Promises don’t start with your customers
You haven’t seen me add “to your customers” at the end of these sentences yet, have you? I didn’t write, “you honour your word to your customers,” or “you honour your commitment to your customers.”
Because that’s not where it starts. That’s where it ends. That’s the goal. That’s the end of the journey.
Customer service starts with keeping your promises with your co-workers, your colleagues, your staff, and your friends at your company. And they with you.
These are promises big and small. They’re promises in writing. And they’re unwritten promises that sustain a company, enabling it to thrive in good times and survive at others. These promises form the little threads that bind each member to the desired outcome: happy, well-served customers.
Recognize the importance of your staff
IT Guy makes sure everyone has the best, fastest, most dependable IT resources necessary to do the job, at all times. And he promises to listen.
The “customer service” staff — and I quote the term because really, everyone in a company is in customer service, some companies just haven’t bothered to communicate that — they commit specifically to making the customer happy. They answer the customers’ calls, and communicate to everyone else in the company what’s needed to keep the customer happy.
Billing Guy makes sure the invoices are absolutely correct, all the time, keeping customer service free for other needs; and IT Guy’s promises keep Billing Guy happy with correct, timely invoices.
Then there’s Sales Guy. Sales Guy is very happy when all this happens. Why? He’s the direct beneficiary of referrals from happy customers. His conversion ratio continues to rise as he sells with the confidence brought by his promises kept with his colleagues, and theirs with him.
My role then becomes like that of an insurance agent. I ensure everyone communicates openly, including myself, on all that’s needed to grow our company. The bond is maintained as we grow and change — very important. Many companies forget this in their rush to change, and then wonder why, at the end of the day, it all fails.
Happy staff make happy customers
Promises to a customer are the simple end result of the promises kept with each other. The good habits of listening and accountability, honouring our promises, and helping each other — and therefore ourselves — becomes the norm in all interactions. Doing the right thing really does come naturally. You just have to ensure no one gets in the way; create a few meaningful extrinsic rewards; and sometimes undo the mental habits of previous jobs.
At that point, there’s simply no way a promise to a customer could be broken. What would be the point? It would be like those Visa commercials, where a community’s smooth and happy operation comes to a halt with the use of cash. Only here, our community with our customers would come to a halt with the breaking of promises to each other. What would be the point — adding a little dash of agony? We can get our share of that from any number of other companies.
But those companies known for providing great customer service are “merely” (!?!) filled with members busy each day keeping their promises to each other.
Customer service: it begins with keeping your promises.
Credit for this meme should be given to Mike Wagner, CEO of White Rabbit Group, along with Steve and Andrew MacGill from Peersight Online, who recently joined our company for lunch at our offices.
When you’re in customer service, you’re in a life of service. Your day is focused on those customers’ needs: listening for them, anticipating them, identifying them, and then finding solutions and meeting, maybe even exceeding, their needs.
This insight was so obvious I’d overlooked it. Steve Rucinski reminded me of it after he interviewed me, along with Anita Campbell, at Small Business Trends Radio. He called after the show. We got to talking and he said something very simple, very honest, very illuminating: Customer service is a life of service.
It’s as unglamourous, overlooked and unappreciated a position as all positions of service can offer. It’s a life of servitude, even devotion, of putting their needs in front of yours. By its very nature it’s a humbling role. Putting others’ needs first builds a humble person. Maybe that’s why those in customer service are often such good listeners.
And maybe the nature of customer service, putting your customers’ needs in front of your own, reinforces the tendencies of others less humble to overlook or dismiss the importance of this function. How important can you be if others are always more important? Right? In customer service everyone’s more important than you, right?
Funny. Funny as in sadly ironic that so-o-o many companies communicate those upside-down values; in terms of their priorities, customer service comes last. They’ve got meetings to attend and reports to complete. The meetings are a chance to share their ideas. And the reports shout their success… and tally their incentives. No customers allowed.
A company’s mere existence is based on how well it serves the needs of its customers and staff. What’s more important than serving your customers? What better way to communicate a customer’s importance than putting their needs first?
Those needs start with their phone call or e-mail. Drop what you’re doing and answer it. It’s a simple act communicating that your work takes a back seat to their needs, even if you’re in a meeting or totalling your incentives. It’s an act of service. If done well, with genuine enthusiasm — and we’re not talking perfection, because we’re in the business of making profits, not saints — you repeat this day in and day out, and you live a life of service. And you have a sustainable business.
It can be that simple — and profitable. Lives of service always are.
My friend and I were recently at a business event. And conversation came around to talking about business models. And after rolling around the business models with Web 2.0 startups and innovations and trolling through the buzzword-friendly marketing arenas of word-of-mouth and customer experience marketing, my friend looked at me and said, “you’re just customer service.”
I laughed. I had to agree: yep. We’re “just” customer service.
That’s the point, isn’t it?
Serving the customer? Meeting their needs, solving their problems, making them happy, making them want to call you again, seeing you as a trusted advisor, having them smile at the thought of calling your company? That’s the point, right?
Customer challenges, when met, are the ones we brag about to our family and peers and leaders. Helping customers is the source for our sense of accomplishment, our sense of well-being, our intrinsic rewards and sense of worth.
Serving the customer. Meeting their needs.
It’s “just” customer service.
It’s just customer service for those companies who are growing, self-sustaining, exceptional in their fields, looked to as leaders.
Fred Reichheld in his book, The Ultimate Question, talks about how companies are addicted to bad profits — profits that come at the customer’s expense and drain the value out of customer relationships. They burn out employees and alienate customers.
Companies whose business model is “just” customer service are filled with staff who are inspired and motivated. They’ve connected their passion to serve with the needs of their customers. Internal or external customers. It doesn’t matter. It’s just customer service.
Customers are the ones that pay our salaries.
For those that forget, customers pay salaries. They provide the cash that exceeds expenses in cash-flow statements and net income statements. Bonuses are derived from customer payments — well, they are in the better-run companies.
You sometimes wonder if the company you’re calling, or working for, forgets that. It’s a crass motivator, I agree. But it’s useful. There may be readers too jaded to embrace a life of service in the business world.
If you can’t serve the customer, remember they pay your salary.
When you serve the customer, you no longer need to serve others.
Others like banks for loans, or ad agencies to drive your message. Ad agencies and their expenses aren’t needed when your customers are served. Customers carry your message. And that message is their experience with your company: It’s wonderful they tell their friends and colleagues and neighbors. Their ad for you is convincing. Not so with your ad agencies.
It’s “just” customer service that can free you to control your destiny, your mission, your customers, your business, your day. It’s just serving your customer that gives you the freedom to build your day, run your business, innovate and change the way you want to, the way your customers want to.
Oh. And make a little money.
You’re just customer service. At the end of the day, you can do a lot worse.
Independent contractors are responsible for reporting all income to the IRS, whether or not you received the right forms from your clients. 1099 forms are used to report income to the IRS. This article will help prod your clients to file their 1099 forms.
Who has to report/file form 1099?
Companies/Employers who made payments of $600 or more to independent contractors who provide trade or business services.
When to report?
If the following four conditions are met, you must generally report a payment as nonemployee compensation.
- You made the payment to someone who is not your employee;
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
- You made the payment to an individual, partnership, estate, or, in some cases, a corporation;
- You made payments to the payee of at least $600 during year.
Which 1099 form should you use?
Typically, you will receive or file the 1099-Misc form to report income from independent contracting / freelancing. If you have hired contractors you will need to file 1099s and if you are contractor you may receive 1099s from the companies with which you did business.
For other sources of income, though, you will need to use other 1099 forms. There are many other types of form 1099s to report income such as cancellation of debt, dividends, or income from interest.
State laws on form 1099
State laws differ on when a business is required to file a 1099. For example, some states have a limit on the amount of income an individual can be paid as 1099 income from a single business to prevent businesses from avoiding paying taxes and benefits to “employees” by paying them as independent contractors. Be sure to check with your accountant for your state’s policies.
Where to get form 1099
If you are filing your 1099s and 1096 by paper, you must file red scannable copies of the forms with the IRS. These red forms can be obtained for free from the IRS by mail (the forms may be ordered online or by calling 1-800-829-3676) or at your local IRS office. You can also buy red forms at your local office supply store.
Also note, do not use a felt tip marker, as the machine scanner cannot read that type of ink.
Important dates to remember
- January 31, 2008 — deadline to give Copy B of Form 1099 to the recipient.
- February 28, 2008 — deadline to file with the IRS Copy A of Form 1099 as well as Form 1096.
- March 31, 2008 — deadline to file forms electronically.
This is presented as general information only and should not be construed as tax advice. If you need help with filing your forms or other accounting help, please contact Heather Villa.
Believe it or not we are nearing the close of another year. If you are a small business owner you can ring in the New Year with peace of mind by taking a few simple steps now. If you use accounting software like QuickBooks, you can use the year end checklist found in the Help menu of the software to assist you in your planning
Step 1. Reconcile your accounts.
Account for all of your transactions – bank, cash, and credit cards. Make sure that you have all of your month end statements and documentation. Get your Bank Reconciliation Statements. It is good practice to prepare this monthly. You will need to look for any differences in your bank statements against the entries in your register. You are looking for
- Checks issued but not cashed.
- Deposits that have not been credited.
- Direct deposits and debits and any other transactions that may have created a discrepancy.
Step 2. Track expenses.
Most of you are using the cash-basis accounting method (essentially, what matters most is cash coming in and going out of your bank account). If so, you need to keep track of prepaid expenses and income. These prepaid items need to be separated from standard expenses and income as they are going to be an asset or a liability and need to be recorded as such on your balance sheet.
If you have received bills for certain expenses which will be paid later, and would like to record them as current year expenses, you can only do that if you are using an accrual accounting method (essentially, what matters most is what is owed to you or by you, not the actual cash payments). However, if you make sure to pay the bills before the end of the year than they would qualify as valid expenses under the cash-basis accounting method.
Step 3. Track depreciation.
You will also need to account for non-cash expenses like depreciation. If you have identified certain debts as non-recoverable, show them as bad debts. Keep track of your fixed assets. If you have added assets or disposed of them you will need to verify that these entries have been made. If you are planning to buy any new assets in the near future, it is better to buy it in the current financial year. You will be able to reduce your current year tax liability and benefit from depreciation. Of course these transactions are based on the current requirements and current financial status of business.
Step 4. Track staff salary.
Certain expenses, such as staff salary must be paid by year end. You do not want to carry this into the next year as an outstanding expense. You can reduce your current year income by delaying some of you fourth quarter sales orders to the next year. Once again your tax savings is dependent on the financial status of your business.
Step 5. Outstanding accounts receivable.
Finally, you will need to account for income accrued for the year but not received. This depends on your method. As previously mentioned for the accrual basis it will be recorded as Income (period!) for a cash basis it will not be recorded as anything – it is not an income until payment is received. Now what it means when I say “account for” is to determine whether these should remain as open accounts receivable or whether they should be written off as a bad debt. Typically if it is over 90 days it should be taken off the books and written off as a bad debt (providing a deduction to cancel out the income).
Finally, hit print and relax with an egg nog.
Once you have accounted for and entered all of your transactions into your accounting system you can generate your year end financial statements. These statements include your Profit and Loss Statements and Balance Sheet. Review the statements to ensure there are no inaccuracies or abnormalities.
These few planning steps will not only prepare you for tax time but will enable you to plan for next year. Then you can relax and enjoy a peaceful year end.
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