Archive for Accounting for small businesses
Excess government spending will harm small business
Posted by: | CommentsThis not a rant about any political party. Bush and the Republicans spent like drunken soldiers also. The Obama administration had a lot to deal with in a short time but they have gone way beyond what’s needed to fix the economy and have ended up in the deep end of the pool….where deficits harm everyone.
Small businesses need to be prepared. If government deficit spending isn’t curtailed we will face years, maybe decades of slow or no growth and high inflation.
What should a small business do now? Conserve cash…even if it means not paying down debt. Cash is your only protection from catastrophic events, either economic or political.
Don’t be fooled by the recent stock market performance, it’s based on hopes and dreams… not any reasonable expectation of low inflation and growth.
Conserving cash means passing up opportunities with risk to conserve cash and have more protection on the downside. Conserving cash also helps slow growth but growth is a macro issue and your financial well being is a micro issue.
Protect yourself first. You’ll sleep better.
Politicians, Government to Small Businesses -”We want to help you!”…. who’s kidding who?
Posted by: | CommentsI hear lots of talk from Politicians from Obama to Palin and every hack in between talking about helping small businesses. If they want any ideas (as if they really actually DO want to help small business), here is one:
I recently checked something for a client. It had to do with when he charged Sales Tax for the pastries he sold. The following is from the State website:
“Other retailers with eating facilities (for example, grocery and convenience stores with tables, trays, chairs, benches, or booths) should continue to collect sales tax on all food sold heated or with eating utensils, including milk sold with cups or straws. Individual-sized packages or portions are still taxable, except for bakery items sold without eating utensils.”
I guess yes or no wasn’t going to work for them. If my client sells a pastry on a plate with a fork, it’s taxed. If he sells the same pastry and puts it in a bag it’s not taxed.Well that clears it up, oh, by the way if he sells it in a bag but puts in a plastic fork he has to charge tax.
And this is just for a pastry, mutiply this times about 1,000 and you can see why charging sales tax is a nightmare for small businesses.
How ’bout fixing this first Mr/Mrs Politician? When you are done with this one I’ll give you another one or 500! I’m not even asking for a bailout, just a little common sense.