Month: January 2022


Get Your Money’s Worth! Things to Know When Pricing Your Products and Services

Do you struggle with picking good price points in your business? You know what I mean โ€“ coming up with a price for your services or products that you know will *actually* be profitable?? ๐Ÿ˜ฌ If that sounds like you, then itโ€™s time to get to know the fixed and variable expenses in your business โ€“ and then use a super simple breakeven formula ๐Ÿค“ ๐Ÿค” ๐—ฆ๐—ผ ๐˜„๐—ต๐—ฎ๐˜ ๐—ฎ๐—ฟ๐—ฒ โ€œ๐—ณ๐—ถ๐˜…๐—ฒ๐—ฑ ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ป๐˜€๐—ฒ๐˜€โ€? These are your โ€œoverhead costsโ€, and they donโ€™t change much from month to month. You pay roughly the same amount, no matter how much (or little!) business you do. Some examples of fixed expenses are: ๐Ÿข Rent or lease of office space ๐Ÿ‘ฉ๐Ÿปโ€๐Ÿ’ป Website hosting fees ๐Ÿ‘” Employee salaries ๐Ÿค” ๐—”๐—ป๐—ฑ ๐˜„๐—ต๐—ฎ๐˜ ๐—ฎ๐—ฟ๐—ฒ โ€œ๐˜ƒ๐—ฎ๐—ฟ๐—ถ๐—ฎ๐—ฏ๐—น๐—ฒ ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ป๐˜€๐—ฒ๐˜€โ€? These are expenses that are directly tied to your volume of production and/or sales. Therefore, the total amount of these expenses changes depending on your volume.


Tips when Applying for Business Loan

Are you thinking about applying for a loan for your business? ๐Ÿ’ฐ If you are, there are a few things youโ€™ll have to do before calling up your bank, such as: ๐Ÿ“„ Gathering up your financial + legal documents ๐Ÿ’ณ Checking (and maybe improving) your credit score ๐Ÿ—บ๏ธ And even writing up a detailed business plan. Know what else you got to do? Get your business bookkeeping up to date and in order ๐Ÿ˜ฌ Hereโ€™s why: ๐Ÿ“Š LOAN AMOUNT: Without up-to-date finances, you canโ€™t know exactly how much you need (or what monthly payments you can afford!) ๐Ÿ“Š REPAYMENT AMOUNT: Not only that, but youโ€™ll also have to prove to the bank that you can actually AFFORD that monthly repayment amount


Collecting & Filing Sales Tax for Your Business

โ€œSo do I need to worry about collecting & filing sales tax for my business? ๐Ÿค” And if so โ€“ what percentage or amount do I need to charge?โ€ Hoo boy โ€“ this is actually a surprisingly complicated question ๐Ÿ˜ฌ Hereโ€™s why: ๐—˜๐—ฎ๐—ฐ๐—ต ๐˜€๐˜๐—ฎ๐˜๐—ฒ ๐—ถ๐˜€ ๐—ฑ๐—ถ๐—ณ๐—ณ๐—ฒ๐—ฟ๐—ฒ๐—ป๐˜ There is no universal federal sales tax rate โ€“ sales tax is determined by each individual state, therefore the rules and rates and filing frequencies differ from state to state. And itโ€™s not just state taxes โ€“ there are also local taxes (like county and city) to factor in as well. ๐Ÿ—บ๏ธ ๐—”๐—น๐—น ๐—ฝ๐—ต๐˜†๐˜€๐—ถ๐—ฐ๐—ฎ๐—น ๐—น๐—ผ๐—ฐ๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€ ๐—ผ๐—ณ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€ ๐—ฎ๐—ฟ๐—ฒ ๐—ฎ ๐—ณ๐—ฎ๐—ฐ๐˜๐—ผ๐—ฟ. What if your business is located in Ohio, but you have a warehouse located in Pennsylvania? Or a salesman located in Illinois? Did you travel to Kentucky to sell your goods at a weekend convention? That all has an effect, too. (And donโ€™t get me started on the confusions and complications of drop-shipping and Amazon Fulfilment)


Understanding Tax Dates

Everyone knows about the big bad tax date, April 15th, right? โ€ฆ But what about all the other โ€œlittleโ€ tax deadlines in between, like the estimated tax payments due every quarter? In case you arenโ€™t sure about this whole quarterly tax thing, hereโ€™s a quick rundown (and a good article below with more info!) ๐—ช๐—ต๐—ฎ๐˜ ๐—ฒ๐˜…๐—ฎ๐—ฐ๐˜๐—น๐˜† ๐—ฎ๐—ฟ๐—ฒ โ€œ๐—˜๐˜€๐˜๐—ถ๐—บ๐—ฎ๐˜๐—ฒ๐—ฑ ๐—ค๐˜‚๐—ฎ๐—ฟ๐˜๐—ฒ๐—ฟ๐—น๐˜† ๐—ฃ๐—ฎ๐˜†๐—บ๐—ฒ๐—ป๐˜๐˜€โ€? Every quarter, you need to make a tax payment based on your estimated income for the year. This includes taxes like income tax, Social Security tax, Medicare tax, and more (if applicable) If you were a W2 employee working for a company, these taxes would automatically be taken out of each paycheck. However, since you and I are self-employed business owners and freelancers, we have a different process for paying these taxes. ๐——๐—ผ ๐˜๐—ต๐—ฒ๐˜† ๐—ฎ๐—ฝ๐—ฝ๐—น๐˜† ๐˜๐—ผ ๐—บ๐—ฒ ๐—ฎ๐—ป๐—ฑ ๐—บ๐˜† ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€? Probably โ€“ although it doesnโ€™t have the exact same effect on every business. However, if you made more than $400 this year through your business, youโ€™ll need to file and pay something. (Keep in mind โ€“ there are penalties for late filings!)