Robert Goodman’s STRAIGHT TALK ABOUT SMALL BUSINESSTM Newsletter • November 2017 • Page 1

If you have employees, you can reimburse them for business expenses

or give them an advance or allowance to cover business expenses. This includes

(but is not limited to):✪ Necessary transportation✪ Business entertainment✪ Meals✪ Lodging✪ Other travel expenses

These payments can either be treated under an accountable or unaccountable plan. What’s the difference? Following are the requirements for both types of plans:

Accountable Employees:

✪ Must pay or incur deductible expenses while performing services as your employee

✪ Must adequately account to you for these expenses within a reasonable period of time

✪ Must return any excess reimbursement or allowance within a reasonable period of time

Also note that: ✪ You are allowed to deduct expense reimbursements

to employees who comply with the terms of the plan as business expenses (limited to 50% for meals

and entertainment)✪ These reimbursements are excluded from the employee’s gross income✪ These reimbursements are not reported as wages or other compensation on the employee’s W-2✪ These reimbursements are exempt from federal income tax withholding and employment

NonaccountableA nonaccountable plan is an arrangement that does not meet the requirements for an accountable plan. All amounts paid or treated as paid under a nonaccountable plan are reported as wages on Form W-2. The payments are subject to income tax withholding, social security, Medicare and federal unemployment taxes. You can deduct the reimbursement as compensation or wages only to the extent it meets the deductibility tests for employees’ pay.Need help understanding this topic? Please reach out to our offi ce. We’re here to assist! ✧

Welcome to the November 2017 issue of the Straight Talk Newsletter. Mother nature has brought some instability this year, but that means that bringing stability in our lives and the companies we operate are of utmost importance.

So let’s begin by answering some common questions that we get asked my many clients relating to the reimbursement of expenses to employees. Payments can be treated as accountable or unaccountable, the article in this month’s newsletter will help to clarify.

We continue with an article titled, “Keep Business Energy Costs Under Control This Winter”, elaborating on the ways to keep the costs, of businesses operating in cooler areas, down with the temperature.

Then we discuss ways to sustain a positive attitude and manage savings. Following the management of your pockets, we share an article on managing diverse team members and the outcome of reinforcing positive aspects of each team member.

This month’s issue is filled with explicit tips and suggestions to keep your savings, and yourself, in the right mindset as the year ends.

Enjoy!

Until next month…

November 2017

The newsletter designed to keep you on course to build a successful small business

Reimbursing Employees for Business Expenses: What You Need to Know

Robert Goodman, CPA, MBA

Rober t Goodman, CPA, MBA

Do You Have A Tough Accounting /Tax Question You Want Answered?

I love hearing from my small business clients and friends who enjoy reading my monthly newsletter. I’m always looking to answer

pressing questions you might have relating to small business. If you have a question, tip or idea, please call me at (617) 964-4766 or email me at bob@rgcpa. Perhaps I’ll feature you in a future issue!

Are You In Need ofa Qualifi ed Tax Pro?

If you are not my client and would like to explore whether we might be a good fi t, please

contact me. As a qualifi ed tax professional, I not only know all the rules, but can also help you deal with the IRS and help you decide how far to push a dispute.

I pressing questions you might have relating to small business.

f you are not my client and would like to explore whether we might be a good fi t, please

contact me. As a qualifi ed tax professional, I not

Robert Goodman’s STRAIGHT TALK ABOUT SMALL BUSINESSTM Newsletter • November 2017 • Page 2

Colder weather might mean higher energy costs for businesses operating in colder areas, but those

costs don’t have to spiral out of control. There are some simple steps you can take to winterize your place of business that can make a measurable difference. Try these:

Get an Insulation Evaluation. Insulation is what stands between your space and the cruel temperatures outside. It keeps the cruelties of winter out and interior heat in. If you don’t have enough of it in the right places, you may be throwing money down the toilet. Ask a professional builder or insulation installer for an evaluation.

And That Means Pipes, Too. Freezing temps can cause pipes to burst. Make sure all interior and exterior pipes in unheated areas are sufficiently insulated. Don’t Forget the Ducts. If your business has heating ducts, check them to see if the insulation needs to be replaced. Inadequately insulated heating ducts will mean the heating system has to work harder to keep the building warm, resulting in higher energy bills.

Dodge Drafts and Seal Leaks. According to the Department of Energy, Americans waste $200-$400 a

year due to heat escaping through gaps around doors and windows. Seal any leaks in these areas now before winter takes its toughest bite.

Maintain Your Heating System. Rather than ignoring it until something goes wrong, give your heating system some annual TLC to prevent problems and extend its life. Have a professional look for early

warning signs like leaks, drips, airlocks and thermostat issues.

Change Your Furnace Filters. Dirty filters can restrict airflow,

resulting in increased energy demand. Start the winter season with new filters every year.

Use a Programmable Thermostat. Why heat your space when no one is there?

Automated thermostats can reduce heating costs by as much as 30%. They allow you to set the device to lower temperatures during closing hours and pump things up again in time for the arrival of your earliest workers.

Get Glazing . When you consider that 10-20% of all heat lost is through windows and doors, it makes good business sense to install energy-efficient glazing – that is, glass with low emissivity that prevents heat from escaping.

Saving on gasoline helps the environment as well as your own personal bottom line. To minimize

the amount of money you pay at the pump, follow these guidelines:

• Tune up your car. Service your vehicle regularly so it runs as efficiently as possible. Look for worn sparkplugs and clogged air filters, keep your tires properly inflated, and be sure you’re using the right grade of oil for your engine. All these things can improve your car’s performance and mileage.

• Fill up carefully. Don’t overfill your tank and allow gas to slosh out. Tighten the gas cap so fuel can’t evaporate through any gaps.

• Buy the right gas. Check your owner’s manual for the correct octane level. Filling the tank with a higher octane doesn’t usually improve performance, and it generally costs more.

correct octane level. Filling the tank with a higher octane doesn’t usually

Save Your Dollars At The Pump

Keep Business Energy Costs Under Control This Winter

Insulation is what stands between your space and the

the cruelties of winter out and interior

and extend its life. Have a professional look for early warning signs like leaks, drips, airlocks

and thermostat issues. Change Your Furnace Filters.

Dirty filters can restrict airflow,

Thermostat.

Robert Goodman’s STRAIGHT TALK ABOUT SMALL BUSINESSTM Newsletter • November 2017 • Page 3

“Keep on going, and the chances are that you will stumble on something, perhaps when you are least expecting it. I never heard of anyone ever stumbling on something sitting down.” — Charles F. Kettering

“Optimism is a happiness magnet. If you stay positive, good things and good people will be drawn to you.” — Mary Lou Retton

“Don’t promote negativity online and expect people to treat you with positivity in person.” — Germany Kent

“We need to do a better job of putting ourselves higher on our own ‘to do’ list.” — Michelle Obama

“Great things in business are never done by one person,They are done by a team of people” — Steve Jobs

Overcome The Power Of Negative Thinking Negative thoughts can creep into your mind

when you least expect them. The trick isn’t to fight them, but to manage them so they don’t paralyze you.

Here’s what to do:

• Identify the triggers. When you have a negative thought, stop and ask yourself what’s bringing it on. You may be tired or stressed out, or you may be affected by someone else’s perspective. If you can locate the cause, the thought itself won’t have as much power over you.

• Focus on the now. Worrying about the past or the future isn’t productive. When you start chastising yourself for prior mistakes or seeing disaster around every corner, stop and take a breath. Ask yourself what you can do at that moment to succeed. Giving yourself something to do will distract you from destructive thoughts.

• Replace the negative. If you find yourself plagued by a recurrent worry, train yourself to think of something else. Memorize a short poem, phrase, or meditation that you can repeat to yourself when you have negative thoughts.

Your conscious mind can concentrate on only one thought at a time, and driving the negativity away will free you up to move forward again.

How To Manage Three Different Types Of Employees To be effective as a CEO, you have to be able to

guide and motivate a diverse group of individuals. Here’s a look at a few personality-types you might encounter amongst your team and tips for getting the most from them:

In charge. These employees like to make decisions and run things. You should accommodate their strengths while staying on top of your overall goals. Let employees in this category take center stage on tasks that are appropriate to their skills and experience. Feed their desire to feel important while monitoring their progress.

Behind-the-scenes. These workers tend to be quiet and cautious. They may have good ideas but won’t push to make them heard. Build their confidence by asking their opinions, praising their ideas when appropriate, and reinforcing positive aspects of their personality, like their desire to avoid conflict.

Rebellious. These employees want to challenge the status quo. They can be difficult, but if they have the best interests of your organization at heart, they’ll be worth the trouble. Don’t get into arguments with them.

Reinforce the positive aspects of each personality without engaging the negative. Behaviors that don’t get reinforced will usually fade with time.

o be effective as a CEO, you have to be able to a

diverse group of individuals.

might encounter amongst

These employees like to make decisions and

Robert Goodman’s STRAIGHT TALK ABOUT SMALL BUSINESSTM Newsletter • November 2017 • Page 4

“Delivering Value”1340 Centre Street, Suite 200Newton Center, MA, 02459Ph: (617) 964-4766 • Fax: (617)904-1141 Website: rg-cpa.com • Email: bob@rgcpa.comMember: AICPA, Mass Society of CPAs, Panalitix, 20/20 Group

Answer Questions Eff ectively To Show Off Your Expertise

You don’t have to be an oracle when it comes to answering questions. Just give each inquiry

your best reply.

Follow these tips for giving your best answer each time:

• Make sure you understand the question. Miscommunication

often occurs when you don’t pay close attention to what is being

discussed. Make sure you understand what you’re being asked, and clarify the

question if you’re confused.

• Don’t wing it. Admit when you don’t know the answer and offer a deadline

for when you will provide one or suggest a resource where they can find the answer.

• Don’t be critical. Never answer a question with a condescending remark like, “You don’t know that?”

• Don’t be arrogant. Avoid using complicated language and technical terms.

• Explain things. Discuss topics in a way that all parties involved will understand.

A Responsible Employ ee Cory was transferred to a new department

after receiving a recommendation from his old manager. A week later, that manager received a visit from the head of the department to which Cory had been promoted.

“I’ve got a bone to pick with you!” said Cory’s new boss.

“You told me he was a responsible worker.”

“That’s right.”

“Then I’d like to know your definition of ‘responsible’ because that kid is a walking disaster.”

“Well, he worked in this department for three months,” said Cory’s former manager.

“The first month, our computers crashed eight times and our database was wiped out. The second month, our new database was corrupted and the phones stopped working. By the third month, we had issues with our server, more problems with the database and the stress caused me to have migraine headaches...

I’d say for each one of those things, Cory was responsible.”

a visit from the head of the department to which

“I’ve got a bone to pick with you!” said

“You told me he was a responsible

“Then I’d like to know your definition of ‘responsible’ because that kid is a walking

“Well, he worked in this department for three months,” said Cory’s former manager.

often occurs when you don’t pay close attention to what is being

discussed. Make sure you understand what you’re being asked, and clarify the

question if you’re confused.

• Don’t wing it.know the answer and offer a deadline

See What’s Inside...Reimbursing Employees for Business Expenses:

What You Need to KnowKeep Business Energy Costs Under Control This Winter

Save Your Dollars At The Pump Overcome The Power Of Negative Thinking

How To Manage Three Different Types Of Employees Answer Questions Effectively To Show Off Your Expertise

A Responsible Employ ee