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No longer on TypePad

After experiencing many, many problems with TypePad's service we have made the decision to discontinue hosting through this service. You may now find the blog at www.axiomcpa.com/blog. We are hopeful that this change will result in better service to our subscribers as well as the growth of our audience.

Independent Contractors vs. Employees

I received a lot of feedback after our recent newsletter article on the rules for distinguishing between independent contractors and employees. In this podcast I'll expand on this topic and talk about the basic differences between the two, why both employers and workers tend to bend the rules in favor of contractors and the risks of being too agressive.

download the Independent Contractors vs. Employees podcast

Note: clicking on the link above should play the pod-cast using your browser software and associated plug-ins. If you would like to subscribe to the pod-cast using Apple's iTunes software see the post "Subscribe to Axiom's Podcast."

Benchmarking for Small Business

Benchmarking is the process of comparing your business to other best in class businesses. It is not uncommon to read of Fortune 500 companies studying each other to discover best practices. For instance, a hospital chain may study an airline and car rental agency to develop a better registration and admitting experience for patients. Since the hospital will never compete with the airline or the  rental agency there's a good chance they will all share information openly that can help one another. Small business owners can take advantage of a similar process if they scale it down and get to know the best in class companies in their own community. In this podcast we will give you some ideas for getting started.

download 060902-Benchmarking.mp3

Note: clicking on the link above should play the pod-cast using your browser software and associated plug-ins. If you would like to subscribe to the pod-cast using Apple's iTunes software see the post "Subscribe to Axiom's Podcast."

My Odeo Channel (odeo/8d7aa8f524df8b4f)

Understanding, Building and Using Comparative Financial Statements

Businesses are accustomed to using financial statements and some even use comparisons to last year to gauge improvements in sales or other big line items. But in-depth planning and strategic decision making require a much bigger picture. In this pod-cast I talk about comparative financial statements, what they are, how to create them and some of their uses.

download 060901-comparative.mp3

Note: clicking on the link above should play the pod-cast using your browser software and associated plug-ins. If you would like to subscribe to the pod-cast using Apple's iTunes software see the post "Subscribe to Axiom's Podcast."

My Odeo Channel (odeo/944e8c75044ca3e4)

Improve Your Hiring Process

People are the heart and soul of any business, but the hiring process is far from enjoyable for most business owners. It usually goes something like this...

Business is good. So good in fact that you need more help to get everything done. You place an ad, put out some feelers and collect some resumes. After one or two rounds of interviews you hire the person with the most experience, the best qualifications and someone you think can work well on your team. But after a week or a month the paperwork, the training time, the extra questions and hand holding start to dampen your initial enthusiasm.  It's not uncommon for new hires to add more stress to your life than value to your bottom line.

In our work with clients there is always room for improvement when it comes to adding people. In this podcast we'll cover some best practices and things we've seen work for small businesses when it comes to generating profits with extra manpower.

download 060825-NewHire.mp3

Note: clicking on the link above should play the podcast using your browser software and associated plug-ins. If you would like to subscribe to the podcast using Apple's iTunes software see the post "Subscribe to Axiom's Podcast."

Why Second Locations Fail

The vast majority of new businesses fail and an even greater percentage of expanding businesses fail to find success when opening a new location or branch office. While there may be many contributing factors for this three major shortcomings usually stand out above everything else.

1. A lack of defined roles in the organization.
2. A lack of defined processes.
3. A lack of management.

This podcast elaborates on each area and gives you ways to make sure your new location doesn't become another statistic.

Download 060818-Why2ndLocFail.mp3

Note: clicking on the link above should play the podcast using your browser software and associated plugins. If you would like to subscribe to the podcast using Apple's itunes software see the post "Subscribe to Axiom's Podcast."

Section 529 Plans May be Here to Stay

Section 529 Plans (often referred to as tax advantaged college savings plans) got a big boost last week when a sweeping pension bill was approved by Congress. The President is expected to sign the bill into law giving Section 529 Plan investors a sigh of relief. As it stands now the rules allowing tax free distributions from Section 529 plans for education expenses will expire after 2010. That would mean that the investment earnings in such plans would accumulate tax free, but once the money is pulled out (for education purposes or otherwise) the earnings on the portion distributed would be included in the gross income of the beneficiary (usually the college student). The new legislation makes the tax free distribution for education expenses permanent.

Probably the best summary I've seen of the differenty 529 plan types is from the Motley Fool. It does a good job of highlighting the differences between 529 savings plans, 529 prepaid tuition plans and Coverdell education savings accounts.

Section 529 Savings Plans are probably the most popular today. Because the plans are setup and administered by the states there are a tremendous variety available. And just becuase you live in Florida doesn't mean you can't invest in a 529 plan in say, Virginia. One of the biggest differences between various state plans is the contribution limit. Unlike IRA's or other retirement plans 529 savings limits are based on the total account balance, not the amount contributed in a single year. For instance, you can make contributions to a Florida 529 savings plan until the balance reaches $341,000. You can write one check or several. It doesn't matter. Iowa limits it's plan balances to $239,000. You can also transfer balances from one state to another so the student is limited to picking a school in the state where the account was setup.

When choosing a state savings plan also note the fees and whether there are requirements for residents vs. non-residents. Some states with a state income tax allow 529 contributions to be used as a deduction so you'll want to take that into account as well. One very good resource for comparing the features of various state plans is Savingforcollege.com. Kiplinger's also has a very good article on 529 Plan FAQs.

One final note. Some plans, many in fact, are sold by brokers. Just as when purchasing other products from people paid to sell them you should be on your toes and bring a healthy level of scepticism with you before making a commitment. Both the NASD and the SEC have launched inquiries into questionable sales practices related to 529 plans.

 

What is Entrepreneurship?

This week I'm going to steal a podcast from someone else rather than create my own. If you read the July newsletter that came out this morning you know I'm a huge fan of the Entrepreneurial Thought Leaders lecture series podcast put out by the Stanford University. This lecture featuring Jeff Hawkins took place May 18, 2005. Hawkins is the founder of Palm Computing and Handspring and he has what I think is the best conceptual framework of entrepreneurship that I've ever heard. Check it out.

http://www.stanford.edu/group/edcorner/uploads/podcast/hawkins050518.mp3

Note: clicking on the link above should play the podcast using your browser software and associated plugins. If you would like to subscribe to the podcast using Apple's itunes software see the post "Subscribe to Axiom's Podcast."

Creating a CYA Journal

I don't quite know how I found this article or who pointed me to bellaonline.com but I found it to be an interesting method for organizing the work day. If you tend toward manual rather than tech driven solutions or have a fondness for good old fashioned notebooks this is a great idea.

Finding a Good Accountant

I feel like I could have written this short article from AllBusiness.com. Although I don't like to pigeon-hole our services under the "accountant" moniker these tips  are exactly what I tell clients, friends and family members they should be looking for as they interview prospects for their business needs.