7 Steps to Pay Less Tax and Increase Your Marketing Budget
by Dart Wooden
SilverDart Consulting
Merry Christmas, Happy New Year and 2010 Tax Year End! Are you interested to learn how you can reduce your 2010 taxes, increase your marketing budget, and become known as a “good corporate citizen” all at the same time?
As a business owner you have given some thought to the business and personal taxes you will have to pay for 2010. You may have put off or slowed down spending money on marketing because you are not sure how much money you will pay in taxes. There IS a way to reduce the amount of tax you will pay and increase your marketing budget. As a bonus you get to help a worthy cause.
Here is how it works. You provide business services (or a product) to a charitable organization, submit an invoice for the value of that service or product, and then make a donation for the same amount. In return you get a tax receipt, they pay you for your invoice and the charity gives you valuable and free marketing.
For example, you provide $1,000 of services (or products) to “We Help People!” Once your work is completed, you provide them with an invoice for $1,000 and you immediately give them a donation of $1,000. They pay the $1,000 invoice, issue you a tax receipt, and may write a testimonial or help promote your business in other ways.
This provides four significant benefits for you and your business. Your business receives some valuable promotion, your business makes a sale and shows that income, you help an organization you believe in and are perceived as a good corporate citizen, and last, but not least, you reduce your taxes by as much as $500.00.
The organization also reaps significant benefits. First, they receive financial support from your donation in order to carry out their Mission, second, they have one more person talking about them in the community and third, providing you with a charitable tax receipt doesn’t cost the organization anything!
The 7 steps you need to take before December 31st to make it happen for the 2010 tax year are:
- Pick a charitable organization you believe in that you feel could directly benefit from your services or products. They may not directly need your services or products but they may need items for a silent auction or some other fundraiser.
- Contact the organization to arrange to meet with the appropriate person. Sit with them to explain what it is you want to do. Be sure you have a clear understanding of what it is you will and will not do for them and explore what they are able to do to help promote your business.
- Provide your service or product.
- Make the donation
- Invoice the organization
- Receive your payment and charitable tax receipt.
- File your 2010 taxes.
For Step 4 you will want to consider a few additional things if your company is incorporated. If you pay yourself a wage, it would be best if you personally make the donation and not your company, as personal taxes are higher than corporate. If you spouse works as an employee and is in a higher tax bracket make sure the donation is made in their name.
The charitable organization may be able to acknowledge your donation in one or more ways. For example, you could be listed as a donor on their website, in a fundraising event program, in their annual report, or in the organization’s newsletter. When you meet with the organization to discuss your service or product and donation, remember to ask about how they will acknowledge your donation. This should be agreed upon in advance.
Remember even if your corporate tax year is not December 31 in order to get the personal tax benefit you need to have this completed before December 31st. So stop reading, pick up the phone, and talk to your favorite charitable organization and see what you can do for them!
For information about SilverDart Consulting, please visit
www.silverdartconsulting.com
Or phone Dart Wooden, 780-293-4868
Anderson Fans Join Facebook!
You can now find ACTI on Facebook.
Watch for messages and find classmates. This is a great addition to your social advertising.
Become a fan today! http://www.facebook.com/AndersonCareerTraining
Self-Employment Program Referrals
24 Weeks – Government Funded
We are currently accepting applications for the January 10, and March 7, 2011 Self-employment Program start dates.
ACTI has helped more than 900 entrepreneurs achieve their goal of being self-employed. As an ACTI ambassador, we encourage you to refer friends, neighbours and family to the program.
To arrange to attend an orientation session (Tuesdays or Thursdays), call 780-944-0909.
Customer Relationship Management
or, “How I Invented a Better Wheel”
Carl Owre
Man on the Moon Technologies
Have you ever missed a deadline or an appointment because you were tracking those details with sticky notes or relying solely on your memory? Customer relationship management (CRM) is one of the most important ingredients of every successful business. As my business grew, I found it more difficult to use paper systems and began to search for a computer system to properly manage this information.
In the general market there are CRM systems that integrate with calendars or email systems. I tried several demo versions and became frustrated as some were oversimplified, and others quite complex to learn and use. Systems either tracked too much or too little information, or the wrong type of information, or required a monthly fee.
It is important to me that a CRM system track appointments, keep detailed information about my clients, includes historical notes, informs me of upcoming events, and that I can know at a glance, where I have free time for booking sales appointments. These features help me grow my business as they support me in being prepared in advance, for phone contacts, appointments, meetings and production hours.
I searched for a system, all the while asking, “Where is the system that does what I need it to do, with no extra features, and for a reasonable price?” Many of my current customers find me when they’ve exhausted their search for answers to the same question.
You’ve heard the saying, “don’t reinvent the wheel”? Well eventually, that’s exactly what I did. I did the research and determined there was a market for an individually tailored CRM product. I developed a CRM then in 2000 began to market my individually customized software products to business owners.
Statistically, off the shelf software meets 80 to 90% of the needs of a business. However, that remaining 10 to 20% can be the most important needs or features required by your business. Would you buy a car that worked only 80% to 90% of the time?
Some of my clients have invested in excess of $40,000 for a computer program specially written for their industry. Actual application of that program to their business quickly becomes an exercise in frustration as their focus moves towards “accommodating the software”, or “making do”. Ultimately they seek my company for advice and expertise in developing a program for their business.
Your input is invaluable to me as I design the CRM software for your business. No matter the industry, the people who will work with the CRM know best how they want to track or use information to manage their business.
Since I wrote my CRM, organizing my time has never been easier. Bye, bye sticky notes, hello increased sales volume!
To contact Man on the Moon Technologies
Phone Carl Owre at 780-481-5907
www.manonthemoontech.ca
Anderson Career Training Institute Holiday Season Business Mixer
At our November 25th 2010 Holiday Season Business Mixer, many connections were made between ACTI graduates and we trust those relationships will continue to grow in 2011. We acknowledge the generous donations from the following ACTI graduates for Draw Prizes:
Smagy G. Golf School
4-hour Golf Lesson
Phone Geoff Harris at 780-497-2781
smagyggolf@yahoo.ca / www.smagyggolf.com
Geoff Harris is also the owner/operator of 6S Maintenance – Residential Snow Removal
It’s a great time of year to call: 780-497-2781
“Ladies Only” In-Home Spa
Gift Certificates for a Classic Facial, Manicure and Pedicure
Phone Peggy Lowman at 780-454-8282
www.ladiesonlyin-homespa.yolasite.com
Harder Nails and Details
2 Gift Certificates for Mini-Manicure Services
Phone Judy Harder at 780-467-7070
judy@hardernails.ca / www.hardernails.ca
Your donations helped make this season a little brighter and happier for Draw winners and Mixer attendees. Thank you for your generosity. We wish you a prosperous 2011!
If you would like to donate your business product or services for a future Business Mixer, please contact Fran Marion, reception@acti.org.
