Learning Center for Tax and Financial Insights

If there was ever an industry whose owners should understand the need for discipline and diligence around bookkeeping and accounting, it’s those who work in the fitness industry. Personal trainers and gym owners are perpetually encouraging their clients to set an intention, make a plan, and then stick with it, yet those very same individuals are so averse to keeping up with their general ledger that it’s the rough equivalent of a client buying a membership on January 2nd, working out religiously every day for two weeks, then disappearing again until two weeks before bikini season. We’re not here to judge …. we’ve fallen off a workout wagon or two over the years, so no shame about falling behind on your bookkeeping. At the same time, just as setting a manageable, realistic training schedule is the best way for your clients to achieve their fitness goals, the same is true for your financial stability goals. Fitness businesses face unique cash flow challenges that are best managed by establishing and sticking to a regimen.The Challenges of Running a Fitness BusinessYour love of fitness has driven you through your best days and your toughest times and has inspired you to live your dream, share the joy — and make money while doing it. Unfortunately, there’s more to business success than helping people lose weight or get cut. To be successful, fitness businesses need to establish regular clients, keep bringing new people in, and find ways to add cash – whether through events, guest passes, snack and drink sales, or branded merchandise. It’s a never-ending drive that makes sitting down and recording revenue and expenses feel like drudgery.Equate Getting Financially Fit with Being Physically FitIt’s that sense of drudgery that you need to grab onto in the same way that you want your clients to take hold of the fitness challenges you present to them. Here are the exercises you need to add to your daily routine that will keep your business moving forward in a healthy way.

With a potential recession on the horizon, most small businesses, in particular, are looking for avenues to cut costs wherever they can. However, that doesn't mean that your business can't still grow - you just have to be savvy about how you do it.With that in mind, there are a number of ways to grow your business without a significant upfront capital investment that is more than worth exploring.Growing Your Business: Breaking Things DownOne opportunity to grow your business that a lot of people don't take enough advantage of comes by way of a vigorous networking and outreach campaign. Experts typically agree that doing so is the best way to build a base for your business - something that you can use to build upon regardless of what is happening with the economy.You don't even necessarily have to leverage in-person events in order to do this. You can use social networking sites like LinkedIn, Twitter, and TikTok depending on the audience that you're trying to reach. If yours is a business that caters to a more professional market, something like LinkedIn would be the prime choice. If you're going after a younger group of consumers, TikTok or Snapchat would serve you well. All of these services offer free accounts and the only real investment is your time.Another way to grow your business involves creating - and verifying - your "Google Business" profile. Keep in mind that even when it comes to brick and mortar stores, the vast majority of all people will discover a brand for the first time via a search engine. Statistically speaking, that engine is likely to be Google given their market share.

For homeowners seeking to sell their houses, the tax law allows for a certain portion of the gain to be excluded from taxable income, saving the taxpayers a significant amount of money. However, there are also limitations and exclusions that should be aware of. Watch this video to plan ahead before making your home sale.

For small business owners, in particular, growing a business has always been something of a challenge. On the one hand, you don't want to grow too quickly - doing so can significantly damage the trajectory that you've set out on. But at the same time, you also don't want to grow too slowly as this too can cause you to remain stagnant and get passed by some of your competitors.All of this is also true at higher levels, particularly when it comes to taking that pivotal stop from a $1 million business to a $10 million one. According to studies, most businesses generate about $500,000 in revenue - meaning that they just need to find that next step to get to the desired level. It's certainly not an impossible feat as countless others have done it, but it is something that requires you to keep a few key things in mind.Growing Your Business: Breaking Things DownFirst, it's important to acknowledge that getting to $10 million in revenue for your business isn't actually "the hard part." Most experts agree that getting to that $1 million level is far more difficult.This ultimately comes down to the disparity between the concepts of "wealth" and "income" - two ideas that people sometimes have a hard time reconciling. Having an overall net wealth of $1 million is certainly an attainable goal. Getting to that point in one year may be less realistic.Therefore, one needs to understand that ramping up the revenue of a business at the same pace is equally unrealistic. Once you learn to live by the idea of "slow and steady wins the race," you put yourself in a much better position to succeed over the long term.Indeed, this shift in mindset can pay dividends across the entirety of your organization. You need to re-evaluate your risk aversion, for example, so that you know which opportunities are worth capitalizing on and which must be passed by. You need to be objective with yourself about how tolerant you are to risk in the first place. You should also let that insight inform many of the decisions that follow.Another way to grow your business from $1 million to $10 million (and beyond) also has to do with being realistic with yourself, albeit in a slightly different way. If your business has grown stagnant, you need to ask yourself why. Is it due to a legitimate lack of opportunity, or is it because of a general pessimism about what the future might hold? The latter is understandable to a certain extent, but it also stands in the way of the growth-minded leader that you need to be. It causes hesitation at moments when action is critical, and it is something that ultimately holds a lot of people back.

Article HighlightsNew BusinessLegal and professional feesSpousal Joint VenturesSelf-employed Health InsuranceHome OfficeDeducting the Cost of Business EquipmentAdvertising ExpensesWebsite CostsFinancingVehicle ExpensesBusiness MealsAs a small business owner, you should always be on the lookout for legitimate ways to minimize your taxes. Waiting for year-end to do your tax planning can be too late and you may miss many possible opportunities. The following are valuable tips that help you maximize your business deductions.New Business – Normally the costs of starting a business must be amortized (deducted) over 15 years. But taxpayers can elect to deduct up to $5,000 of start-up expenses and $5,000 of organizational expenses on the return for the first year of the business. A qualifying start-up cost is one that would be deductible if it were paid or incurred to operate an existing active business in the same field as the new business, and the cost is paid or incurred before the day the active trade or business begins. Examples of qualified start-up costs include:Surveys/analyses of potential markets, labor supply, products, transportation facilities, etc.;Wages paid to employees, and their instructors, while they are being trained;Advertisements related to opening the business;Fees and salaries paid to consultants or others for professional services; andTravel and related costs to secure prospective customers, distributors and suppliers.Each of the $5,000 amounts is reduced by the amount by which the total start-up expenses or organizational expenses exceeds $50,000. Expenses not deductible in the first year of the business must be amortized over 15 years.Legal and Professional Fees - incurred in setting up the business would fall under the organizational expense first year deduction of $5,000 and the balance would be amortized over 15 years. However, legal, and professional fees incurred after the business is up and running can be expensed.Spousal Joint Ventures – When both spouses in a married couple are involved in the operation of an unincorporated business, it is common – but incorrect – for all that business’s income to be reported as one spouse’s income as a sole proprietorship on IRS Schedule C. In which case, the spouse not filing a Schedule C loses out on the chance to accumulate his or her own eligibility for Social Security benefits and the ability to fund a retirement account.In addition, to claim a childcare credit, both spouses on a joint return must have earned income (or imputed income if one of the spouses is a full-time student or is disabled), so unless the non-Schedule C spouse has another source of earned income, the couple will not be allowed a childcare credit.There are two ways to remedy this situation, either: (1) by establishing a partnership or (2) a joint venture (each spouse files a Schedule C with their share of the income, deductions, and credits).Self-employed Health Insurance - If you are a self-employed individual, you can deduct 100% (no AGI reduction) of the health insurance premiums without itemizing your deductions. This above-the-line deduction is limited to net profits from self-employment.Home Office - Small business owners may qualify for a home-office deduction, which will help them save money on their taxes and benefit their bottom line. Taxpayers can generally take this deduction if they use a portion of their home exclusively for their business and on a regular basis. Plus, this deduction is available to both homeowners and renters.There are actually two methods to determine the amount of a home-office deduction: the actual-expense method and the simplified method.Actual-Expense Method – The actual-expense method prorates home expenses based on the portion of the home that qualifies as a home office, which is generally based on square footage. Aside from prorated expenses, 100% of directly related costs, such as painting and repair expenses specific to the office, can be deducted. Unlike the simplified method, the business is not limited to 300 square feet.Simplified Method – The simplified method allows for a deduction equal to $5 per square foot of the home used for business, up to a maximum of 300 square feet, resulting in a maximum simplified deduction of $1,500. A taxpayer may elect to take the simplified method or the actual-expense method (also referred to as the regular method) on an annual basis. Thus, a taxpayer may freely switch between the two methods each year.Additional office expenses such as utilities, insurance, office maintenance, etc., are not allowed when the simplified method is used. Prorated rent or home interest and taxes are not either, although 100% of home interest and taxes are deductible as non-business expenses if the taxpayer itemizes deductions.Deducting the Cost of Business Equipment - From time to time, an owner of a small business will purchase equipment, office furnishings, vehicles, computer systems and other items for use in the business. How to deduct the cost for tax purposes is not always an easy decision because there are several options available, and the decision will depend upon whether a big deduction is needed for the acquisition year or more benefit can be obtained by deducting the expense over a number of years using depreciation. The following are the write-off options currently available.Depreciation – Depreciation is the normal accounting way of writing off business capital purchases by spreading the deduction of the cost over several years. The IRS regulations specify the number of years for the write-off based on established asset categories, and generally for small business purchases the categories include 3-, 5- or 7-year write-offs. The 5-year category includes autos, small trucks, computers, copiers, and certain technological and research equipment, while the 7-year category includes office fixtures, furniture and equipment.Material & Supply Expensing – IRS regulations allow certain materials and supplies that cost $200 or less, or that have a useful life of less than one year, to be expensed (deducted fully in one year) rather than depreciated.

Expanding your family? Whether you’re in the planning stages or your bundle of joy has already arrived, raising a child is one of life’s greatest joys — and biggest expenses. And we’re not just talking about the costs of college. From diapers to daycare, from braces to bicycles, parents are often shocked by the constant outflow of cash that starts days after bringing baby home. While there’s nothing you can do to avoid incurring these expenses, you can definitely soften their impact by educating yourself about what to expect and planning ahead. Below you’ll find a helpful list of mistakes to avoid, resources not to miss, and steps you can take to boost the chances that bringing up baby will be less of a drain, and more of a pleasure.Start with a Realistic BudgetHas anybody ever told you that all you need for a baby is a drawer for a bed, a bottle, and a bunch of cloth diapers? There are plenty of people who sing that song, and we have news for you — they’re wrong. If you’ve already given birth then you’re already familiar with some of the bills, but if you’re still in the planning stages, make sure that you include these expenses as you prepare:Prenatal and postnatal doctor visits for both mom and babyBirth and delivery costsBaby clothes, nursery furniture, car seats, playpen, glider, highchair, strollers, baby bath, etc.ChildcareDiapers and wipes, baby medications and ointments, shampoos, etc.Formula and bottle-feeding supplies or breast pumps and milk-storage bags, or bothAnd that’s just for the first year or two of parenting. As your child gets older you will need to add on the costs of toys, clothing, bicycles, braces, summer camps, birthday parties …. And if one of the two of you plan to stay home with your child – even part-time – that will significantly impact your disposable household income. While the government reports that the average cost of raising a child from birth through adulthood is $233,610, those averages include the people who spend the very most, as well as those who spend the very least. To get a realistic sense of how much you can expect to pay, talk to your friends, and ask them to share what they’re spending, especially when it comes to childcare. Those figures can be truly eye-popping.Take Advantage of Tax BreaksPlenty of people kid around about their child representing a tax break, but there is truth behind the joke. The government has created several credits and deductions to help alleviate some of the financial burdens of raising a child, but these breaks are not automatic. You have to fill out your tax forms properly and claim the advantages to which you are entitled. Make sure that you are familiar with everything that is available to you. These may include: