Change is inevitable
--except from a vending machine.
Fall is fast approaching, which makes me remember that everything changes. And, Paparazzi is no exception. Just like any company, Paparazzi has to make changes that they hope will best benefit their consultants and customers alike.
Personally, I like the addition of online ordering. I feel like we can not only host many more parties online, but that we can also reach an audience much larger than friends, or friends of friends, or friends of friends of friends. Catch my drift? With online ordering, I might make an online sale from some lady, who loves affordable jewelry, somewhere in West Virginia whom I've never met. I just might make a sale to a soon-to-be-Mrs. looking for some lime green bracelets for her wedding party. The sky is the limit, if we just continue to put ourselves out there!! To make Paparazzi work for us, we have to BE a salesman. We have to THINK like a salesman and we have to ACT like a salesman. So, we have to advertise our butts off--and so much of our advertising can be done through technology.
Think about it this way: If you want someone to come to your Garage Sale, you have to let them know you are having one (first), and sometimes you even have to let them know what you are selling...just to entice them to come. We should be no different. We have an awesome, affordable product. Let's get the word out there!!
Change in Taxes
I just love how online ordering has changed my tax situation as a small-business owner. Even though I already used my computer, internet, and phone for business, now I feel more compelled than ever to make it count towards my taxes. The truth is...without technology we cannot promote our business, right?
Again, there is an entire list of business expenses that we can deduct, because we are now conducting our business online. Yes, for some of us, we are simply using technology to advertise, but there is a huge potential for lots & lots & lots of online orders. So, our tax deductions are going to change.
Internet Service
First & foremost: We all pay for internet service! And, we all use our internet service to conduct our business. But, here's a word of caution...chances are you are NOT primarily using your paid service ONLY for business. My son plays games on PBS every once in a while, my husband shops online for dirt bike parts more often than he should, and I openly confess to watching far too much internet television. However, I can estimate that I use our internet approximately 10% of the time. Plus, we have 5 electronic devices that are sharing the internet plan. Seems reasonable to deduct 10% of my internet service, without getting red flagged on my taxes. To count this as a monthly deduction, you need to have receipts for your internet service for each month.
Cell Phone/Telephone Service
Did you list your cell phone number on your flyers or business cards? Do you conduct business on your smart phone, via internet? If so, your cell phone bill can be deducted from your taxes--IF AND ONLY IF you also have a land-line you use for personal reasons. However, again, I would not suggest deducting the entire cell phone bill...because I know as well as you know that you are totally texting your sister while you are driving. Truth is, your cell phone is being used PRIMARILY for personal reasons!! I feel it is reasonable to deduct 25% of your cell phone bill for business! Some people, however, get a second,new phone and number that they use solely for their business; in this case, the entire cell phone bill could be a business expense. I wouldn't suggest deducting the miles driven, or the postage required for your phone or internet business, since a percentage of the bills are primarily for personal reasons. However, again, if you have a second cellphone JUST for Paparazzi--then go for it--deduct the entire bill, miles driven to pick up the bill and drop off the bill at USPS, and postage to boot!
New Computer or Tablet
Do you need a new computer or tablet or printer? You can actually count the entire cost of your new equipment, as long as it isn't replacing your old one. Let me explain. Your computer or tablet needs to be designated for your business, because there are far too many personal uses for these devices. Does that mean you can't check the news, watch cat videos, or shop Old Navy on your computer? No, it just means you have to have an additional device that is used primarily for personal use. In my home, my husband has an older laptop he primarily uses, my son plays on our older tablet, and I just purchased a new computer for business. Yes, sometimes I use my son's tablet to check my Paparazzi account...and yes, sometimes my son watches Netflix on my business computer because it is newer and much faster. And, sometimes I take my son's tablet to events with me, to enter my credit cards sales. This is totally allowable and the entire cost of my new computer is deductible, because I can verify that at least one of my devices is meant for business.
Malware & Computer Repair & Strange Cords
With computers, there are always additional expenses. Have to buy Malware or Microsoft Office? Does your computer need more memory, or RAM, or due for a repair? These are write-offs, as long as they are being used on the same computer you are claiming for business. And, as long as you have a receipt. Do you need earplugs that you plan to use for Paparazzi webinars? These count, even if you might use the same earplugs when you work-out. Do you need a microphone or webcam to make online Paparazzi webinars for your team? I do! I am going to buy them and use them as a write-off...and sometimes we will use them to Skype with Grandma, too. And, don't forget all the strange cords & devices that computers require. We have an entire box in the garage, and I'm sure they were required for one of our devices somewhere along the way. Just remember to keep your receipts. And, don't forget to log the miles driven to purchase your new equipment.
Tax Advice--Disclaimer
With any business, I would recommend meeting with a CPA or tax adviser before submitting any official tax information to the IRS. I am not a certified CPA, or tax adviser, or pool lifeguard for that matter. I just like math...does that count? I am simply sharing my knowledge with all of you, and encouraging all of you to maintain honest records.
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