Tag Archives: home office

Does Math Really Count?

Guest Blog by Barbara J. Waite, Your Chief Priority Officer – Projects, Your Way

How many of you have had that experience in high school where you were wondering, “Now how in the world will math be useful to me in real life?” Well it wasn’t until I was asked to tutor a high school student on the fundamentals of algebra did I develop a real appreciation for the language of numbers. The real cool thing about this language is that it ties all humanity together… math is a universal phenomenon whether it is represented by the dollar, euro, yen or peso. As I began to ponder over this implication, I could clearly see how math is so immersed in our daily routine that our life would be chaotic without it! Here are a few examples of what I mean:

  • MATH HELPS US BUILD THINGS: Creating something that will last and add value to our home requires creativity, the right set of tools, and a broad range of mathematics. Having the ability to do minor home improvements will save a lot of money and headache. Armed with math, we will also have the ability to check the work and project estimates, ensuring we’re getting the best value.
  • MATH HELPS US BECOME GREAT CHEFS: More math can be found in the kitchen than anywhere else in the house. After all, recipes are really just mathematical problems or self-contained step-by-step sets of processes to be performed.
  • MATH HELPS US MANAGE OUR TIME: With only 1,440 minutes in a day, we really need help in prioritizing what we need to accomplish and thankfully, with the help of math, we can! By assigning each task a number and the higher the number, the more priority it receives. This mathematical to-do list allows us to dedicate yourself to the most important and time-sensitive tasks first.

And most importantly,

  • MATH HELPS US MANAGE OUR FINANCES: Experts agree that without strong math skills, people tend to invest, save, or spend money based on their emotions. Someone who thoroughly grasps the concepts of exponential growth and compound interest will be more inclined to better manage their finances.

These are but a few ways in which math helps us to make better daily decisions… not only in our personal lives but also our business, where the accounting system is the heart of the operation and the state of its health can mean success or failure. Simply put, math is about solving problems and it plays such an integral part in our daily activities both personally and professionally, it’s no wonder why our high school math teachers were so intent on teaching us this very valuable language skill.

If math makes you squirm or you just want a second opinion, consider an external Bookkeeper/Accountant Doctor for your finances.

Help your accountant, help yourself: a few tips for home-based entrepreneurs

 

A 2013 article from Small Business Trends stated that 69% of entrepreneurs in the United States start their businesses at home. This makes perfect sense. Many new businesses are in part or entirely operated online. As people buy more and more goods and services online, there’s less need to take the expensive risk of investing in a brick and mortar business. Moreover, if you know what you’re doing, you can help yourself – and your accountant – come tax season.

Although it takes additional time and a few extra steps, you can really help yourself by understanding the upside of claiming a deduction.

First if all, you know need to know what you can and can’t deduct. It’s a good idea to check with the IRS regularly to see if these things change, but here are a few things you can deduct.

The cost of a home office

In order for this deduction to pass any potential audit, you need to make sure the space you call your home office is a separate space or separated and dedicated space in your home. It doesn’t have to be its own room, but it can’t be a multipurpose space, either. For example, many people use an empty additional bedroom as a home office. Others have a separate studio or redesigned barn they use for a home office. If you are using a corner of your basement, that’s fine, too. Your home office doesn’t have to have four walls and a door.

But you can’t set up computer desk in the corner of a guest bedroom or nursery and call it your home office. The key here is that it must be a regular and exclusive space you use to run your business.

You must also be able to show that your office is the principle place of your business. Even if you meet clients other places, you need to be able to show that you do the majority of your work in your home office.

Keep in mind that the IRS only allows up to 300 square feet. But they do allow for $5 for every square foot up to 300.

Technology and technology purposes

It’ll be a hard sell to convince anyone that if you have one computer that you are only using it for business purposes. If you do that, though, you can deduct the cost of depreciation.

If you decide to purchase a dedicated business computer, you can write the cost of it off. After that, you can write off the cost of depreciation. You can even deduct based on the percentage of use. TurboTax is very helpful with this.

You can also write off the cost of a dedicated phone, whether it’s a cell or landline.

It’s worth the hassle

When you’re starting a new business, whether you operate it out of your home or not, every penny counts. Staying on top of and taking advantage of tax laws can help turn a slow first year into a much better second year.

The most important thing to keep in mind is that keeping track of all your expenses, and keeping all of your business receipts will make it easier in your end of year accounting and tax preparation. You will save yourself and your accounant time, money, and headache down the road.