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Did you file an extension this year?

June 24, 2009 Leave a comment

How many times have you told yourself that you weren’t going to file an extension this year? Then how many times after filing that extension have you said you were not going to wait until the deadline only to find yourself scrambling in September or October to get it all together? 

You don’t have to do that again this year! We can help. Lack of planning is the single biggest and yet most avoidable cause for stress! How can Nerd Enterprises, Inc. help?

I’m glad you asked. We can send you a staff member to evaluate your current status, what needs to be done and how long it will take. Then we can either train you or your bookkeeper as the case might be on how to tighten things up or we can go to the next step for you and have our staff do the work to get you cleaned up and ready for Year End, tax planning (i.e. estimating what you owe for the year and helping to plan on setting that aside if necessary between now and March Or April).

Now what about the plan for Next Year? How many of you have sat down and spent some time thinking about what you expect your income to be next year, compared that with your expenses and now have an idea of what you might be able to afford to do much less save during the year? I have already spent hours on it for my Company as well as for myself personally. Even if you are an “employed” person you should do this. My experience has been that unless you do this you will not likely generate a significant savings. I’ve read articles that people my age (in their 30’s) have substantially less savings on average than our parents did by the time they were our age. And we make a lot more money!!! 

I’ll give you a few reasons besides the obvious, why you should do this and how it can help.

First and foremost… Peace of mind! When my mind is at ease, I am much more productive and I have found that my mind is MUCH MORE at ease when I understand exactly where my finances stand. Then when I am not working I find it much easier to relax – I don’t have to worry about spending because I know exactly what I can afford to spend.

Second… Goal setting and reaching. This applies more to the self employed (but not entirely). When I know what I should be able to make at a minimum, I can then see what I can do to raise the bar. For the employed person maybe that means putting in an extra 10% in order to lock in that raise and promotion. Sometimes it might mean a lateral move in order to position yourself within the organization for an upward move. What ever the case might be, plan it and see what you can do in order to make that happen. For the Self employed this means thinking both in and out of the box. Inside the box it is the obvious – how can I get more business? Outside of the box means thinking about new ways to generate revenue and perhaps most importantly, how do I generate residual / recurring revenue. Come up with some ideas and add that in to your model or projection. The idea is to have the same effort invested one time continue to generate revenue.

Third… Motivation. It is a lot more likely that you are going to get excited about where you are headed if you have that concept well defined. If I know that I can earn $250,000 this year but I am going to need to work to do it – as long as this is a realistic goal for me, then I will get excited about it and I will in turn be motivated to do what it takes to make it happen. Caution here! If I set unrealistic and unachievable goals then I am setting myself up for failure and I will be overwhelmed and disappointed. This is the opposite of what we are trying to accomplish. So be realistic but do plan and do set the goals. If you have never operated this way before then I suggest you start off by setting fairly easy to attain goals and then each time you achieve one, set the next bar a little higher over your head than the last one was.

So there you have it. A few reasons. We can help you with all of this using two very important tools (and the very things that have made my life what it is today) – QuickBooks and Microsoft Excel.

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