Smart Money Choice$

This is the time of year when the IRS is sending out notices not only regarding Tax Rebates, but also on discrepancies relating to tax returns filed in April. The scammers are taking advantage of the timing.

The latest scheme involves a tax refund form that is sent via email, supposedly by the Taxpayer Advocate Service (a real organization within the IRS that assists taxpayers with unresolved problems). This one is especially blatant in the type of information it requests.

At the bottom of the message is a phony name and signature, claiming to be the Taxpayer Advocate. The idea is that you fill in the form and submit it directly to the Taxpayer Advocate to receive a tax refund.

Of course, the only way to get a tax refund (or the Economic Incentive Rebate this year) is to file your annual tax return. Refunds are not issued with the use of a separate application form. And the IRS sends notices via US Postal Service, not email.

So, if you receive this bogus message, be assured that it is a scam and simply delete it.

Another scam circulating is less obvious. In fact, I actually received one of these emails in my inbox recently. It’s supposedly from the US Tax Court.

This message is what’s called “Spear Phishing,” which is an email spoofing attempt that targets a specific organization. Again, this is a scam. The Tax Court is not sending any email notices to anyone, whether they currently have a case before the Tax Court or not.

You can identify this fake email because it will have the words “US Tax Petition” in the subject line, along with a fake docket number. The sender address is noreply@ustaxcourt.org.

If you get one of these messages, DO NOT reply or click through on any of the links. Just delete it. And have no fear. If either the IRS or the Tax Court wants to contact you, they’ll send you a letter in the regular mail.

You can get more information on these scams straight from the government websites:

www.ustaxcourt.gov
www.irs.gov/newsroom/article/0,,id=155682,00.html

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs to get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://BookkeepingDirect.com

Computers are a vital part of doing business on a day-to-day basis. Daily operations usually involve inputting data, creating documents, processing and recording financial transactions, sending email and using websites of all kinds.

Without computers, an amazing number of businesses would come to a grinding halt. I know I would be finished without a computer and the Internet! What about your business?

As wonderful as technology has been for small businesses though, there is a BIG vulnerability that comes with computer dependency. Hardware failure.

Millions of dollars are spent annually to recover lost data. The data recovery industry is HUGE and continues to grow. That’s because it’s a given. Your computer hardware will fail sooner or later. Whether it’s due to internal or external forces, it will happen. Are you ready?

I’ve had my own share of computer crashes that could have put me out of business in short order - if I didn’t have complete backups. But I did. My computer’s hard drive crashed not once, but three times in just one month. All data was destroyed and lost. Apparently the problem was an obscure glitch with the motherboard that was frying the hard drive. Yes, the computer was still under warranty, but if I didn’t have those backup copies of all my data, my business would have been dead.

Could you handle a complete crash of your computer hard drive right now?

At the time of those crashes, I was using a tape backup system. But I wouldn’t dream of using that same system now. Computer files are much larger now. It would take far too long and it’s way too risky as well. At the time, I was only keeping a copy of the backup in my desk drawer. But I realize now that it wasn’t a smart plan for storing backup data.

What if there had been a fire in my office or a break-in? What about a hurricane or an earthquake that destroyed everything in my local area? If that had happened, there would have been no way I could have put my business back together.

That’s why I’m now a big fan of online backups.

Most of us have heard and agree that keeping an off-site backup copy is a good idea. But how many of us actually do it, or do it regularly? I didn’t. That is, until I started using an online backup service.

An online backup service is convenient, inexpensive and easy. You just need a high-speed Internet connection. All your files (or just the ones you select) will be transferred to a secure online file storage server, which is usually located in a different part of the country. Your backups can be scheduled automatically too, so you don’t have to remember to do it manually.

Being able to restore your data easily is also important. Different services use different programs for backing up your files. So if you decide to make the smart choice of using an online data backup service, it’s a good idea to practice restoring your backed-up data so you’ll know how to get at your files when the need arises.

Of course, you have many choices when it comes to online backups. Here are a few options I’ve explored myself and recommend:

- QuickBooks Online Backup - You can set up this service from within QuickBooks. Just go to the Help menu, click Add QuickBooks Service, and you will find Online Backup as one of the choices. You will also be given the option to sign up when you perform a regular backup within QuickBooks software.

- FilesAnywhere - this is the online backup service I use, which has many other nifty features built in for your business. They also offer a free trial to see if you like the service. I like that you can set up an icon on your desktop to get access to your backup files anytime you need them (no special restore program needed). 

- Amazon S3 (Simple Storage Service) - this is something new I’ve just learned about from my online business mentor, Jim Edwards. It is an inexpensive way to get a huge amount of secure online storage space for your computer data. I’m still figuring out how to use it, but it is a very powerful alternative if you have lots of multimedia files that take up a ton of memory. You can learn more about this new service directly from Amazon at http://aws.amazon.com/s3.

Using several backup methods is the best protection against the inevitable. Take steps now to implement a backup strategy and protect your computer data. It’s certainly one of the smartest choices you can make for your business.

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs to get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://BookkeepingDirect.com

If you are using any version of QuickBooks 2005, you need to pay attention to this.

Effective May 31, 2008, Intuit (the makers of QuickBooks financial software) will discontinue live telephone support and add-on services for QuickBooks 2005 (all versions).

This is not really surprising news, since Intuit generally supports the most current version of QuickBooks (right now, that’s 2008), plus the prior two versions (2006 and 2007). That’s why it’s a good idea to upgrade at least every three years. So if you’re still using QuickBooks 2005, now’s the time to upgrade to 2008.

If you’re the type who tends to follow the model, “If it ain’t broke, don’t fix it,” then you don’t NEED to upgrade, since the software will continue to work just fine after May 31. That is, unless you are using add-on services, such as Payroll, Merchant Services, Credit Card Download, Online Billing or QuickBooks Email. All of those services will no longer be supported from within QuickBooks 2005, even though the software will keep on working.

But what if you’re not sure which version of QuickBooks you’re currently using?

That’s easy. If you don’t see which version on the “splash” screen when you are opening the program, then from within QuickBooks simply press Ctrl+1 (from the keyboard, not the number pad) and you will get all the information about your current QuickBooks program, including which version you’re using.

An important reason to upgrade if you’re still using 2005 is because even though Intuit promises to help you out if you lose your keycodes or forget your administrator’s password for discontinued versions (it’s part of their terms and conditions), they will do so only “if that data is available.” In other words, there’s no guarantee they can help you if you are still using an old unsupported version.

This is significant, since if you are locked out of your data file because you can’t remember your administrator’s password, you’re dead. Not being able to access your financial records could literally cripple your business. Not good.

A more positive reason to upgrade from 2005, though, is because in 2006 QuickBooks underwent a major facelift and the user interface has been MUCH improved for following the proper workflow for recordkeeping ever since. That means the program is just plain easier to use. There are also quite a few enhancements and new features in the newer, supported versions, such as Time Tracking, Loan Manager and improvements in the help files.

The quickest and easiest way to upgrade is to download the new version directly from Intuit’s website; Just a few clicks and you’ll be all set.

If you want to upgrade to QuickBooks 2006 or 2007, you might be able to find them on eBay. But realize that you’ll be in the same pinch in another year or two. So my best suggestion is to just bite the bullet and upgrade to 2008 and be done with it (for three years anyway).

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs to get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://BookkeepingDirect.com

We’ve all heard that people do business with those they know, like and trust. And it’s true. That’s why savvy small business owners regularly invest their time and money to attend live seminars and meetings.

But just showing up at a live events is not the secret that will automatically reward you with a boost to your bottom line!

Sure, it’s great to get out of the office for a change of scenery, learn new information, and chat with colleagues and/or new business prospects. But the real magic of live events happens AFTER the event is over. That is, if you know the real secret to effective networking.

Let me give it to you in just one word: Follow-up!

I can’t tell you how many times I’ve attended a live seminar or a local Chamber meeting where I had a productive conversation with someone who promised to stay in touch with me - never to be heard from again. Of course, I’ve been guilty of that same networking sin myself on occasioin too.

So let’s be clear on this. Just showing up with good intentions won’t get you the results you want. To make networking profitable, you must be focused and proactive.

Over the past year or so I’ve attended several important seminars where I knew I could make strategic alliances that would turbo-charge my business in the direction of my goals. So I developed a few guidelines to follow whenever I find myself in a networking situation:

1.  Before the event, I put myself in a friendly, outgoing frame of mind and envision all the great people who will be there. I also sometimes give myself an easy goal of how many contacts I want to make. By nature, I’m a bit on the shy side in crowds, so by focusing on who will be there and my specific goal, it keeps me busy looking for the people I want to meet (instead of being held back by my comfort zone).

2.  At the event, I exchange business cards only with those whom I can see a mutually beneficial opportunity emerging. So it’s not about gathering a stack of business cards, but about getting to know each person I meet. I’m always thinking, “How can we help each other?” and not, “How can I make money from you?” Your focus must be on them, not just on what you do or are selling. 

This is a small distinction that makes a BIG difference in the quality of the connections you’ll make.

3.  On the back of the cards I do collect, I immediately jot a note about our conversation and any specific actions I’ll take as a result. Do not expect that you will remember each person / conversation later. You won’t.

4.  After the event, I follow up with each contact as soon as possible. Usually I do this by email, but this often leads to a phone appointment shortly thereafter. The key is to proactively take action as soon as possible after the event while your initial connection is fresh in yours and your contacts’ minds.

By following just these four simple steps consistently, even when I happen to meet people in a non-business setting, has made a HUGE difference in a short period of time. I’m sure you’ll be amazed at how quickly your network….and client base…will grow too.

~Gabrielle 

P.S. If you often find yourself at a loss for words while attending networking events, you’ll want to get your hands on a copy of the teleseminar I recently conducted with networking expert, Karen Frank. You’ll learn the easy way to start conversations and attract your perfect clients. Get your free copy here.

Here’s the latest news about how much you’ll get for the special tax rebate, and how soon you can expect to receive it.

The IRS has now published a rebate payment schedule that applies if you file your tax return by April 15. The Payment schedule is based on the last two digits of your social security number.

The IRS will begin sending rebate payments by May 2 and will continue throughout the summer. You can see when to expect your payment with this handy schedule, courtesy of the IRS.

Remember, you will get your rebate quicker if you specify direct deposit information on your 2007 tax return, since electronic rebates will be sent well before physical checks are mailed out.

The IRS has also posted a rebate calculator to help you know exactly how much your rebate will be. IRS Rebate Calculator

So file your return on time this year, and you’ll get your rebate quicker. But don’t fret if you do need to file an extension. You will still be eligible for the rebate (assuming you meet the other requirements), but the above payment schedule will not apply. Your rebate will be sent at a later date, based on when you actually file your 2007 tax return.

~Gabrielle