JULY 2007 NEWSLETTER

NEWSLETTER TOPICS:

1) Special Report on Tax Tips for Growing Businesses from allbusiness.com

2) Small Business and 2006

3) New E-mail Law

4) What Country has the Highest Small Business Stress Level?

5) TIP: How to Avoid Tax Audits

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Special Report: Top 10 Tax Tips for Small and Growing Businesses from allbusiness.com

Taxes are one of the most important issues facing small and growing businesses. And like a company's profits, its annual tax bill will in part reflect the owner's skills and knowledge. Business owners need to be sure that they are meeting all of their responsibilities to the tax man -- and also

seizing every opportunity to reduce their taxes. These tax tips will ensure Uncle Sam is not getting more than his due. Read more

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A Banner Year for Small Businesses

Small businesses posted another year of growth in 2006, with new startups exceeding the number of business failures during the year.

The findings are contained in a new, 280-page Small Business Administration report that examines all aspects of the small business marketplace, from the relationship between education and entrepreneurship to the rise of women-owned businesses.

Three key economic indicators — output, productivity, and unemployment — were all up during the year, the report states. Almost 672,000 firms opened while 544,800 closed, pushing the total number of firms to 5.99 million — a new high. Nonfarm sole-proprietorship income was up 7.5 percent, and corporate income rose by 16.4 percent.

Women owned 6.5 million, or 28.2 percent, of nonfarm firms. They employed 7.1 million workers with $173.7 billion in annual payroll, according to the report.

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New E-Mail Law Goes into Effect

Thanks to new federal court rules that went into effect in January, small businesses must have policies in place to manage and maintain electronic documents and information, including e-mail.

The rules are designed to safeguard electronic documents that might be discoverable in litigation, according to the National Federation of Independent Business (NFIB).

In an advisory to members, the NFIB said businesses should implement a document retention plan and establish an employee e-mail policy. "Lawsuits stemming from inappropriate jokes and pictures in work e-mails are on the increase. Your company could be liable for damages if it fails to prohibit illegal behavior, such as pirating software or viewing pornographic images," the advisory noted.

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What Country Has the Highest SMB Stress Level?

If you thought it was stressful to run a family business here in the United States, try doing it overseas.

The United States was second only to Sweden as the least stressful country in which to operate a family-owned business, according to a new survey by global accounting and consulting firm Grant Thornton International.

Of business owners surveyed in 27 countries, 39 percent in the U.S. reported rising stress levels over the past year, compared with 20 percent in Sweden. On the high end, 90 percent of Taiwanese family businesses reported rising stress levels, followed by mainland China (84 percent) and the Philippines (78 percent).

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How to Avoid Tax Audits

A tax audit is an experience every sane businessperson strives to avoid. While there's no way to guarantee the IRS won't pay you an unwelcome visit, you can reduce the chances by following these tactics: Answer all questions on your tax return; use exact numbers ($4,892.18, not $5,000.00); double-check your math for errors; prepare your report neatly and accurately; and attach explanations for any items that may appear questionable.