It is easy to hear people talk about things you can do to make your business work better (and it even happens in this space). It is easy then to agree in your mind that following those steps would help you grow and succeed. It is much more difficult, however, to put these things into action. This can be more easily accomplished with one thing – planning.

One of the biggest problems when it comes to putting those things into action is procrastination. You think that the ideas sound great, you honestly intend to put them into action, but it gets pushed back in the mind to happening after another initiative is implemented or it gets a ‘next year’ appended onto it. When something lives in a mythical time period, actually making it happen is likely to also remain a myth.

So instead, what exactly are you planning?

It is fine if you read a great bit of business advice but are not in a spot to put it into action. That can certainly be a legitimate situation. Are you putting other things into action, though? There can be first steps, but they are only first steps if you actually take them. Forward momentum is critical, but also impossible to accomplish if no steps are being taken in that direction.

So then, do these plans exist somewhere other than in your mind?

It is necessary to have some concept about where you want go in our business, but if it only exists in your mind, then you don’t really have anything to be accountable to. Simply writing it down gives you a visual reminder, though, it forces you to think about the step and adds that extra layer of accountability.

But then, do you have a time period for when it is going to be accomplished?

If you don’t want things to remain ethereal, put a deadline on them. Even if you aren’t accountable to anyone else or anything other than your own written plan, putting dates on that plan will make it more concrete.

And if you really want to make it more concrete, make that deadline earlier than you think possible. If you only do things when they feel comfortable, you will not be accomplishing as much as you could. Comfort is nice, but big steps are more often taken when you are uncomfortable. Would you rather be comfortable now or be even more comfortable down the road because you pushed yourself a bit, tried new things, and found more success because of it?

So push a little bit, make those plans, and don’t be afraid to try new things. The more malleable you are, the more chances you are willing to take and the more adversity you will be able to handle. It is easy to have good thoughts about where you want to go, but you can get there faster than you believe.

Be mindful, be bold. Then even when some parts fail (and yes, they will), you will know that you tried and that is easier to take than wondering what could have been. And it won’t be as painful as it could be, for you will continue following the successful steps.

Running a business involves a lot of work. Running a business should also involve a lot of breaks.

I know when you are in the heat of the action, it never feels like you have time to take a break. I mean, why should you allow yourself down time when your to-do list still has a dozen things on it?  Because taking that time will could actually get you through that list faster than if you force yourself to remain hunkered down.

Those rest points can be difficult because they feel selfish. If you take it as just a thought exercise, however, I would wager that most people believe taking a break when feeling overwhelmed or frustrated can provide a needed reset and help you perform better when you return to the task. Also, I think most agree that they work better after a good night’s sleep. Allowing yourself to get one can be difficult, though, when that to-do list is not finished.

I am not going to pretend to have any experimental data to prove this point, but I truly believe that those rest periods make you more productive and save time in the end. I mean, I’m sure I’m not the only person who has found myself frustrated while fixing my own mistakes on a task I tried to accomplish when a bit worn down.

And now it turns out that small breaks, even ones that can be measured in seconds, help your mind process what you’re doing and learn better. I came across this in an Inc.com article written by suspiciously appropriately named business writer Peter Economy.

This article discusses a study that has found that taking a 10-second break allowed participants to enter a short number sequence they just learned faster than those who did not take a break. It seems the brain really does work better if you give it a chance to take in what you’re doing.

So when you are in nose-to-the-grindstone mode, you may feel like you’re getting a lot done, but you may not really be processing what you’re doing. Sure, this can be fine for some mindless tasks, but for the most part, the more you remember about what you did the better.

Recently I have written about the wisdom of delegating tasks and prioritizing getting help from others when you feel like you are doing too much. That is one way to give yourself a break, but now we also see that is important to give yourself personal breaks within the work you are taking on yourself.

All told, let’s consider this in the mode of self-forgiveness. There is a level of hard work and perseverance that is critical to success. There is also a level of rest and relaxation, however, which is necessary to prevent burnout. This can be small – I mean who doesn’t have 10 seconds? – but just keeping it in mind that not only do you deserve some rest periods, but that they are beneficial, is key to long-term success.

Seeing as the IRS has not received any large increases in budget or staffing, it should not be surprising that the number of audits on individual tax returns continues to decrease. This is a phenomenon that I know I mention from time to time, but seeing as audits will forever be a fear of the taxpayer, it must continue to be addressed.

This is then when I continue to state that the small amount of audits actually carried out by the IRS does not mean that it is worth trying to get away with something on your tax return. Think of this way – if you are facing an audit, do you want to go into it knowing that you legally used the system to your advantage or that there is no way it is going to end without you handing over more money (or worse)?

This recent article from Accounting Today gives a quick look at how the Tax Cuts and Jobs Act could be affecting the audit landscape, while also acknowledging it may take a few years before those ramifications are fully understood. It presents an interesting theory that the TCJA may have removed a lot of complexity that could trigger an audit for the average taxpayer and shift the percentage of audits to the wealthy (even though their total number of audits is also on the decline).

One could say this is a good thing because it made the tax system easier for many average taxpayers, which is certainly true in some cases. The system did not suddenly become simple, though, especially in the current financial landscape where more and more people are earning income outside of a regular, full-time job. Having someone who can guide you to make sure you are using the system to your greatest advantage while making sure your tax obligation is satisfied should still remain the best tactic for making sure you do not have to face an audit.

Consider it doing your part to keep those audit numbers down by doing what you’re supposed to do.

Fewer audits is certainly not a way that the IRS is trying to be nicer toward taxpayers, but it is an inadvertent advantage. The agency is doing other things, however, in an attempt to be more taxpayer-friendly.

In the wake of the draft of a widely revamped W4 form, the IRS has also drafted a new tax return for seniors and a draft for a new 1040 form. I don’t know how large an effect these will have as the amount of taxpayers who fill out these paper forms without electronic assistance is ever decreasing, but the aims are good.  Again, simplifying things doesn’t necessarily make them simple.

Also, the IRS recently sent out communication that points people toward their Interactive Tax Assistant, which offers answers to many tax questions. Keep in mind, though, that the best tax answers come from those who know your personal situation, so never be afraid to turn to us when you can’t find answers elsewhere.

Welcome back to the work week after a Thursday holiday that gave many people a four-day weekend.  It felt good, didn’t it? Wouldn’t it be great to feel that way all the time?

That type of feeling is something I hear about occasionally from small business owners when it comes to why they started their business.  That type of feeling is something I hear about constantly, though, from those who are looking to start a new business. A little more freedom and a lot more time off is part of the dream goal.

The fact that that falls off as a consideration among those who are already in the weeds is a telling thing. This decrease is not because those already in their business are so thrilled about what they do that they no longer want time off. Instead, it is because going into business for yourself is tough.

I do not want this to feel dire. Instead, I want this to be a call that you don’t have to do it all alone. Chances are you did not go to school for law. Chances are you never studied accounting. Chances are you find data entry tedious and maddening. Chances are you do not have a nuanced understanding of marketing. Okay, maybe you’re lucky and have some experience in one of these areas. So many small business owners, however, end up doing all these things and more. More … you know, like the thing you really wanted to do and make a business out of in the first place.

If you do all these things, you are putting yourself in a time crunch that will feel unmanageable, and possibly really is unmanageable for there are only so many hours in a day. Enlisting help, however, can feel impossible because most new businesses are also in a financial crunch. But if you don’t get help how are you ever going to get that extra time for yourself?

And sure, maybe you do not have enough funds to bring on an employee, but you probably have enough funds to put out a couple hundred dollars a month and get an outside company to help you in one of those areas. That then will give you more time you can put into other areas of the business, make more money, and then siphon off another of those areas to someone else. Eventually you may then be able to afford an employee who can take some of the load from multiple areas, and just imagine the time savings there.

The vision many have when they start their own business is singular – I am doing to do this. But let me say that the small businesses I work with that are the most successful are the ones who have more tasks being assigned to others. And it is very rewarding to be part of those “others” that is helping them succeed.

So hold onto how good that time off felt and don’t be afraid to make moves to help you get there. And know that we are there to help you out however we can along the way.

I am writing this in the midst of July 4^th week, which means not as many people are going to read this one. But it also means that many of you are looking for something to do that will make it appear as if you’re doing work while sitting at your desk.  So for those people, here are three quick hits so that you don’t have to pay too much attention.

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In a story that seems to be constant rather than breaking news, the IRS is looking to hire more employees. The steady decrease in the agency’s workforce has been a story for years, leading to fewer audits and longer waiting times when contacting them.

It’s a problem I can’t quite wrap my mind around if I think about it too deeply. This is clearly an institution that the government needs to ensure it is funded and able to function. It seems to be an afterthought when it comes to budgeting, though, with a constant need for increased staff.

So what my mind always comes back to is don’t expect any changes to come about in how the agency runs until the story is that the government is making a significant effort to actually move it up the priority list.

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Also this week came news that there has been some outreach from the financial community to the IRS stating that the new W-4 form is overly complicated and does not represent an upgrade for workers. Also add this to the things that I cannot quite wrap my mind around.

Is it more complicated, yes, but why does this have to be a bad thing? I mean this is the agency actually reacting to an issue and doing something that directly addresses the issue.

The draft version of the form we have seen certainly will take longer to fill out than the current one. Those who have complicated tax situations may even have to confer with a tax professional to get full answers. But does anyone ever say that tax planning is a bad idea? There is just going to be more information and more ability for more people to allow their withholding to satisfy their tax obligation.

Work is not something one should shy away from when it leads to better outcomes.

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Finally, the IRS put out some information this week for those who make money through a hobby. The line between a hobby and a small business can be tricky. No matter on what side of that line you fall, though, if you are making money, the IRS wants to know about it.

That information can be found here.

This is one of those areas where things can be really gray. Like do you really need to report if you made something for a friend who paid you $20 for it? I’ll simply offer a shrug here as a noncommittal answer, but if you’re doing something that could become a significant sideline business, these are issues you at least want to think about.

But not until after burgers and fireworks. So enjoy your holiday!

Keeping yourself safe from potential identity theft and watching out for scams remains important even removed from tax season. The IRS knows this and is taking steps to keep your information safe.

Last week, the agency announced that it would stop faxing tax transcripts this month. It also plans to stop third-party mailing of tax returns and transcripts in July. The IRS has found that criminals can impersonate taxpayers or authorized third parties to get those transcripts and use them to file fraudulent returns. This doesn’t mean that you can never get a legitimate transcript if you need one.  In fact, it is still easy for a taxpayer to do it themselves online by verifying their identity.

At the same time, the IRS is also raising the alarm on a couple of new scams aiming to get your personal information. Two of biggest are claiming that your social security number is going to be suspended or canceled and demands from a Bureau of Tax Enforcement.

We will take on the SSN one first.  Let this be the most giant red flag you can ever encounter when it comes to scams.  If someone wants your social security number, and you aren’t 100% sure who they are and that they should have it, don’t give them any information.

These demands are often coming through frightening robocall voicemails. They talk of potential punishments that sound awful, and they would be if they were true. But if these calls come out of nowhere and speak vaguely of things that you cannot connect to legitimate information that is because they are not real.

Another trick that I like to do with these calls is do a Google search of the number these calls come from. A large percentage of the time this will return a list of people at least searching for the number if not labeling it as a scam.  Either way, that should make you feel more confident that you can ignore it.

As for the Bureau of Tax Enforcement, it sounds real legitimate, doesn’t it? Well, it doesn’t actually exist. When you get a letter in the mail, though, that threatens a tax lien or levy because of delinquent taxes, paying money to the Bureau of Tax Enforcement sounds like a valid way to keep that from happening.

This one feels extra dangerous because it bypasses some of the warnings that are often put out for how to avoid schemes. One is that the first contact from the IRS will come through the mail and not via phone, email, or social media. Well, they bypassed that.  It also seems to be seeking a legitimate way of payment.  You’re sending a check to a seemingly legit organization and not wiring money, buying odd gift cards, or using any other unorthodox form of odd payment. The money is also not demanded quickly.

This shows how scammers are always trying to stay a few steps ahead of knowledge getting out to the public. They are not simply going to be defeated in one arena and then give up. So be sure you also stay ready to take in new information and remain diligent when something doesn’t feel quite right.

How you feel about the Tax Cuts and Jobs Act at this point probably largely has to do with how your tax return looked this year. The numbers from a country-wide standpoint said that things largely remained unchanged from the government’s standpoint. That does not, however, mean that there were not some big changes on a personal level.

That’s why in the time since the tax season ended I have written a bit about being proactive and making changes to help your own situation. It would take some huge surprises for the rules to change again before next year. So you need to do what you can to leverage your situation underneath the current system.

Possibly in an actual bit of surprise, though, the IRS may be helping with this.

Over the last week, the agency has issued a draft of a new W-4 form. Remember that form you filled out when you started your job to say how you wanted your taxes handled and then never thought about again? Yeah, that form.

The changes here are largely due to the TCJA, so allow me to get a little tax jargon-y for only a paragraph. That W-4 form you may still vaguely remember was based on withholding allowances, which was tied to the amount of the personal exemption. This is why it had a little questionnaire about your family and life situation to help you determine how you may want to fill out the form. This worked pretty well for most people. The revamped rules, though, have led to a more complicated form, but one that will be better at actually taking into account your personal situation.

First, let me state that this new W-4 is a draft only.  The real form will only come out later this year. Also, it will be for the year 2020 so any changes you want to make for this year must be done on a current form. It is still worth looking at the changes made, though.

One of the new things on the draft version of the form is the ability to account for multiple jobs. This even includes if you are married filing jointly and both you and your spouse work. This is key because your total income could be much higher than what you earn at the job for which you are filling out the form.

In the same vein, there will also be spots in include income earned from other areas and possible deductions. This is a much fuller version of your total tax picture than was seen on the W-4 form in the past (although you also had the opportunity to withhold additional amounts of money if you so chose).

This new form is a bit more complicated and will take a little more work to accurately fill out. This may feel daunting, and it could even be argued that it will increase the chance of errors. The idea, however, is that it is designed to give a fuller picture and more accurately report what should be withheld form one’s paycheck to fulfill your tax obligation. These are only good things.

Accomplishing good things aren’t always something you can do on your own, though, so as always we remain here to help you make your tax picture work to your best advantage, even if that involves filling out some new forms.