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Stephen C Fox asked:




As a U.S. expat, you can exclude $91,400 or more of your foreign earned income on 2009 expat tax return. You and your spouse may each get the exclusion on Form 2555, each subject to the limit. To qualify for the foreign earned income exclusion, you must meet each of two tests. The exclusion limit is calculated based on days during the year that you met both tests.

Test one: your tax home must be in a foreign country or countries. Tax home means where you live and work. For people trying to deduct travel expenses as work related, the IRS likes to say you live where you work. For expats, they sometimes try to say your home stayed in the U.S. If you are working outside the U.S. and your primary residence is outside the U.S., then you qualify. If you keep a house in the U.S. and don’t rent it out (or don’t try to rent it out), the IRS may try to say you don’t qualify.

Test two: for each tested day EITHER you are a bona fide resident of a foreign country for that day and for a full tax year OR that day was in a 12 month period during which you were outside the U.S. for 330 days.

Bona fide resident means you are legally resident in the country. Your visa must permit you to live and work there, and not just for a short period. For example, if you have a Swiss work permit visa and rent an apartment in Zurich as your only residence, you are a bona fide resident. However, if you declare to the government of the country that you are not a resident (such as on a tax return or as part of a visa), then you cannot claim to be a bona fide resident.

To meet the bona fide resident test, your bona fide residence must include a full U.S. tax year. For example, if your residence began June 1, 2008, it would need to continue through December 31, 2009, for any of the 2008 days to qualify.

The 330 days out of 12 months test (the physical presence or 330 day test), can be very tricky to calculate. Every day in every year is in 365 (or 366) different, overlapping 12 month periods. You need qualify for only one of these periods for each day. Any part of a day spent in the U.S. counts as a U.S. day, EXCEPT however presence during transit between two foreign points. Thus, your day of arrival or departure from the U.S. day is normally a U.S. day. But if you are merely in the U.S. for a connecting flight or flights in an otherwise foreign trip, that doesn’t count as U.S. time.

For example, Joe moves to Spain, leaving the U.S. on July 1, 2008, arriving in Spain July 2. He returns to the U.S. on May 31, 2009. He leaves for Italy on July 20, 2009, arriving the same day. He stays out of the U.S. until late 2010. Joe qualifies for all the days from July 2, 2008 until late 2010. How? His first qualifying period is July 2, 2008, to July 1, 2009. In this 12 month period, he was out of the U.S. 333 days (July 2 to May 30). Another period that qualifies is June 16, 2009 to June 15, 2010, during which Joe was out of the U.S. for 330 days (July 20 to June 15). These two periods overlap and cover all days in 2009. Thus, for 2009, Joe can exclude at least $91,400.

In addition to the basic exclusion, expats can deduct or exclude housing costs in excess of 16% of the basic exclusion (with limits). If Joe spent $2,000 per month for rent for 2009, his housing exclusion or deduction will be $9,374.

Expats qualifying for the bona fide resident test do not need to count their days outside the U.S. However, all expats do need to count their work days in the U.S. and outside the U.S. The foreign earned income exclusion applies only for income earned outside the U.S., not for the U.S. portion of earnings. Thus, if Jane’s salary was $96,000, she worked 240 days in 2009, and 18 of those days were in the U.S., she could only exclude $88,800: her salary at $400 per work day for the 222 days worked outside the U.S.

Expat taxes can be complicated. Count your days every year if you do not already meet the bona fide resident test. Plan your U.S. travel carefully. And get the help you need doing your expat tax return.

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James A Bruce asked:




Social Compliance Auditing is basically a corporate buzzword which covers a broad range of concepts, the most obvious of which is making sure your workers are treated fairly (but this is not the only one).

The idea of a Social Compliance Audit, or Corporate Social Responsibility is relatively new, but has been brought about by consumers who wish to ensure their products are made with all due consideration given to the people and processes involved. This has been a big problem in recent years, as companies outsource their production to China and other 3rd world countries, where laws on environmental and worker protection are non-existent at worse and regarded as best-practice guidelines at best. The most famous case in the news recently involved a Foxconn factory where Apple products are made in Shenzhen, China. A total of 15 workers committed ******* due to inadequate working pay and the promise of insurance money for families if they were to die. Foxconn responded by erecting nets outside the windows to prevent falls, as well as a global pay increase of around 20% to all workers.

Still, this is just one instance of an international problem that highlights the importance of Social Auditing. Indeed, the problem is not just limited to 3rd world countries – a recent Dispatches program from Channel 4 in the UK highlighted a number of factories within the UK itself that were illegally employing Indian workers at half of the national minimum wage and in inadequate working conditions, producing clothes for resale in prominent high street retailers. Companies can no longer ignore their Corporate Social Responsibility and must be vessels for social change.

A Social Compliance Audit consist more precisely of:

- Child labor, checking the proof of age and whether “young workers” (15-18) do not exceed hourly limits for school and shifts.
- Forced labor, checking that the company does not require a monetary deposit to be given a job, or doesn’t withhold money to force continuation of the job.
- Health and safety standards, such as protective equipment and emergency procedures.
- Freedom of unions
- Discrimination and harassment checks
- Disciplinary procedures in place
- Check for illegal confinement, physical beatings or fines levied.
- Working hours and renumeration

I hope that gives you an idea of some of the procedures involved with a Social Compliance Audit. You find out more at this website.

auditing procedures

Frank W Ellis asked:




How do some people seem to always pay less tax or get a bigger tax refund than anyone else, while you try everything possible, just to break even? What if you could find a way to get 20%, 30% or even 50% more money on your tax refund, how much money would that be? Hundreds, maybe even thousands of dollars.

If you could learn just one thing that would help you to get more money back at tax time, this is it. Learn how to use more Federal tax deductions and tax credits when you prepare your taxes. When you learn how to find and use the over 350 tax deductions and credits that are available to every taxpayer, you get more money back at tax refund time.

Here are just a few of the over 350 free tax deductions and credits available to you:

Home mortgage interest, real estate taxes, property taxes Earned income credit, child tax credit, child care credit Energy tax credits State and local income taxes Charitable contributions Home office deduction Medical and dental expenses You could spend a bundle paying a tax accountant to find every tax deduction and credit, but you no longer have to. I’ll show you how you can use tax deductions and credits to give you a triple digit increase in your income tax refund.

Just one tax credit can get you an extra $500

You’ve practiced energy conservation and purchased energy efficient windows and insulation for your house. You can transform this into an (energy tax credit) on your income tax. This is a true tax credit not just a deduction, in other words you can slice up to $500 off of your tax bill or add it to your refund. You can take the energy tax credit on: Home improvements: windows, high efficiency heating and cooling devices, metal roofs, heat pumps and boilers Efficient cars: gas and electric, diesel, alternative fuel and fuel cells Solar energy: solar heaters, photovoltaic systems and fuel cells Luckily for all of us, there are now free tools on the Internet, to help find more income tax deductions and credits than ever before. This year when tax time rolls around, try searching for those overlooked tax deductions, and make your tax refund bigger than ever!

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Natalie Aranda asked:




When you file taxes online for free or even for a fee it is really simple and convenient. When you file your taxes online you can be walked through the tax preparation process so that you don’t have the headache or the stress that goes along with filing your taxes on your own. This can save you time as well as maximize a refund or limit the amount that you owe to the IRS. Preparing taxes can be difficult when you do it on your own, but filing online can make the process as stress free as possible.

Free online taxes are also really convenient because you can file them as early as you want after the first of the year. While many people put off filing their taxes because they do not want to hassle with the paperwork, when you file online you can be done in as little as 30 minutes and you can send off your taxes without another thought. If you have all of the paperwork that you need to file by February first, why not get it done? By the time other people are thinking about filing you can already have your refund in hand, putting it to good use.

If you are a bit hesitate about free e-file resources you can always shop around and see which system looks like it will work best for you. There are many different options out there, so shop around until you find a company or resource that will work best for you and seems like you can trust them. There are some big names out there that you will recognize that you may want to go with, or you can choose one that is more obscure. You want to look for a secure website that will ensure that all of the information that is sent over the Internet is encrypted so no one can get a hold of all of your very personal information. With all of the competition out there you can find a service that is affordable and trustworthy as well.

When choosing to free tax file on the Internet you should look at what the hidden costs may be. Many companies say that their services are free, and they are, but you may also be subject to a convenience charge as well as an electronic filing charge. You can expect to pay as much as $50 to $60 dollars, so it’s good to find this out before you get started because when it comes to taxes online free isn’t always without cost.

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Jake Ohler asked:




What would be the reason for a small business owner to decide to outsource the bookkeeping and accounting of their business? As you may be aware one third of new small businesses fail in the first two years and 56% fail within four years. The reason for these failures may be the lack of organization and focus. Poor financial management is the main reason most small businesses become failures. Often business owners want to maintain complete control of their business or that they are afraid outsourcing bookkeeping and accounting functions would be too expensive, or both.

What business owners don’t realize is that outsourcing the bookkeeping and accounting can save you both time and money. This will also allow you to put more focus on the business itself, which would give your small business a better chance at survival. And when you outsource to the right accountant it can turn survival into profit.

The Benefits of Outsourcing Bookkeeping and Accounting

Save Your Company Time

You’re in business because you are an expert at a particular product or service. Assuming you are not a professional accountant, your expertise doesn’t involve accounting and bookkeeping. So, if you or anyone in your business spends time doing bookkeeping or accounting, this is time you could be spending on your business. For a small business to survive, you constantly need to look for ways to expand your business with new products or better services, marketing your product or service, and keep an eye on what competitors in your business are doing. By outsourcing your bookkeeping and accounting to a trusted professional, this will free up time to do all the critical tasks you need to focus on to allow your company to grow and become profitable.

Save Your Company Money

Time is money and the less time you spend on bookkeeping and accounting, the more time you will have to expand and grow your small business. Most small business owners will spend 10 to 15 hours a month getting the financials together and your hourly rate as owner is much more than what you would spend for the right bookkeeper or accountant. Also, a good accountant will probably spend less time and be able to discuss possible points of interest concerning your financials.

A Bookkeeper or Accountant could help you gain valuable financial information about your Business and utilize valuable computer software a small business owner may not be able to afford or use

A good bookkeeper or accountant will be able to analyze your financial information and be able to tell you how to better manage your expenses and help your small business become more profitable.

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Joe Miller asked:




Multiple data bases, multiple servers, superbills, synchronization, multiple logins, reports, backups, workstations. Honestly, there is enough to worry about already in managing medical offices. On top of all of that there are multiple codes to remember and refer to?

Medical billing software services have been developed to streamline the medical billing process, not simply by allowing practices to connect to multiple locations and databases in one place (which is quite a feat in and of itself), but also by creating simplified access to important codes to which medical billing must comply. The 2005 CPT code book, updated CPT codes, ICD.9 codes, and all other codes are accessible in the same location as the rest of the billing information, and they are updated automatically from year to year.

When President George W. Bush visited the Midwest during his reelection campaign, he spoke to medical practitioners in several locations and referred to “preventative medicine.” Effective management of records and compliance to codes has become a type of preventative medicine, protecting both the client or patient and the practice. Accessing codes on a simple medical billing software helps to ensure not only an efficiently run medical office but also a secure billing process.

Developments in medical billing software have come to benefit the medical field immensely. Databases allowed business to electronically manage billing and medical history information. Technology also created an IT infrastructure to manage the information.

More recent developments include HIPAA-compliant servers and removal of expensive IT infrastructure. Medical billing software has also developed color-coded appointment making, automatic reminders, and billing generation.

The developments continued to include SOAP note management and transcriptions. Medical billing software can now manage everything in one location, even information from multiple offices and servers. There has also been increased security on the servers and on backups.

Topping off the developments in medical billing software has been access to real-time updated codes, including CPT, HIPAA, HCFA 1500, and ICD.9. As medical companies continue to develop, adoption of a compatible medical billing software should be a prime consideration. Preventative medicine begins with accurate and effective record management and code compliance. As your practice searches through the medical billing software, it is important to take into consideration the recent developments available in medical billing software.

cpt codes 2011

John Harkin asked:




Starting an accounting firm can be a daunting task for even the experienced accountant. There are so many issues to consider, including software selection, hiring key employees, office space and other administrative tasks. But one of the most important questions for an accounting firm startup is – how do I acquire new clients so I can build my firm quickly?

Client acquisition should always be a high priority and a significant amount of financial resources must be committed to advertising and other marketing initiatives. At the end of the day, if you don’t have any clients you don’t have a practice. There are many ways to market your firm’s services. Some of the most popular are yellow pages, direct mail and networking. These marketing approaches can and do work, but they do not work as well as a targeted, optimized internet marketing campaign.

When starting an accounting firm, a focused internet approach will give start up accounting practices an opportunity to target the clients that meet their specific service offering. In addition, the return on investment associated with an online marketing campaign tends to be higher than for other advertising mediums. Internet marketing can take many forms including search engine optimization, pay per click, and on-site ad placement. Make sure that you use an approach that allows you flexibility and is cost effective. Many leads may just not be as good as advertised and increased competition in the marketplace is forcing many firms to compete for the same leads.

When starting an accounting firm, make sure that you focus specifically on lead generation and client acquisition first. This should be a high priority for any new firm. Without a client base, all the other administrative tasks associated with starting an accounting firm won’t do you much good.

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Brian Swanson asked:




As the marketing world changes and new tools such as social media websites like Twitter, Facebook and others emerge one has to wonder whether the marketing and lead generation tools of the past are still relevant in the new electronic age. Recently, I was asked whether the “old standby”, telemarketing was still considered to be an effective lead generation tool for professional service firms (law firms, accounting firms, etc). I thought it would be interesting to analyze the telemarketing process to determine if it still can be effective for professional service firms, and if so, how specifically the process should be structured.

First let’s define what telemarketing in this context means. When we speak of executive telemarketing we are not talking about professional business to consumer telemarketing. We are speaking of something very different. This type of telemarketing has a bad reputation and for good reason. It is characterized by someone from an organization calling to solicit money or subscriptions from you right in the middle of dinner or the middle of weekend when the last thing you want to discuss it making a donation. Executive telemarketing is vastly different from the description above. It refers to the process of a company calling a C level prospect in another company to educate them on service offerings, discuss their situation and offer to be of assistance in the future. A key difference is that the calls are being made to businesses and are done so by educated professionals familiar with the industry, service and are able to professionally represent their organization.

Executive Telemarketing In the Marketing Mix
The executive telemarketing process is as effective a lead generation tool as any other components of the marketing mix. In fact, I would argue it is more effective than many traditional lead generation tools because it provide the opportunity to directly interact with the prospect. No other lead generation tool I can think of including email marketing, direct mail marketing, social media marketing or pay per click advertising provide the opportunity to engage the prospect in a conversation about the issues and challenges they are facing. The tools mentioned previously provide a flow of information that pushes out, delivering a message to the prospect but does not provide a forum for interactive communication. Now these methods may eventually lead to a phone call especially if the prospect has an immediate need, but the initial flow of information is still one sided. The interaction component is critical and sets executive telemarketing apart from any other tool to generate leads.

Right Process – Right Results
Despite the fact executive telemarketing allows for interaction it cannot be a successful tool if the process guiding the effort is flawed or ineffective. Below I have detailed out the main roles executive telemarketing and the sales people should play in the process. All too often the process breaks down and becomes ineffective when expectations are not set or the wrong professionals are brought into the process.

Telemarketing – The role of the executive telemarketing professional is to identify qualified prospects from a prospect list. Essentially they open the opportunity by asking pointed questions to uncover issues, problems, challenges or opportunities. The goal is to document as much information as possible so when the conversation ends they can share the details with others in the firm. Although this sounds quite straightforward there are a number of areas where issues arise which ultimately reduces the effectiveness of the process. These include:
Improperly Vetted List. Having a well researched list is important to the process. It is quite embarrassing and destroys credibility when you call into a company and don’t have a name or don’t have the right name for the prospect you want to speak with. Often times what happens is the gatekeepers identify the call as a “cold call” and put it into a general voicemail box or offer to take a message. When this happens the call is lost because it is impossible to know if the message you are communicating will get through. So it pays to research a list and even have the company website and regulatory filings available (when applicable). Skill of the Professional Calling. The person making the call is as important to the process as the sales person or partner that delivers the proposal. If you have someone who is not comfortable on the phone, who sounds monotone or appears to be reading from a script you will no doubt experience less than optimal results. No one wants a call where someone is reading to them. The skills of the person making the calls are critical. In many instances this is the first time a prospect is interacting with your firm. It is imperative the impression left be a good one. Remember the adage; you never get a second chance to make a first impression? Well it applies here. Ensure you have a qualified professional making the calls not only from a technical standpoint but also from a sales standpoint. Improper Follow Up. Following up is the trickiest part of executive telemarketing. How many times should I call? Should I leave a voicemail? How many voicemails should I leave? These are questions that must be addressed prior to the start of the calling effort. Define the process exactly so the professional making the calls knows how to handle each situation. In our experience we generally call once every 7-10 days and no more than three times per month. This includes leaving voicemails, leaving messages with secretaries, etc. Doing more than this may convey the image you are desperate for work or don’t respect their time.
Business Development/Partner – The role of these professionals is generally to follow up with the prospect based on the information provided from the executive telemarketing professionals. Their job can vary from discussing technical issues, scheduling appointments, or simply engaging the prospect in a conversation about their situation to further qualify the opportunity. It is important to note once the lead has been handed off the telemarketing team generally does not become involved in the process again. The function of this group is to take the lead from the opening stages and nurture it to a close. This requires a skilled sales professional that understand the sales process and has experience in the area. Although this sounds quite straightforward there are a few broad areas where trouble can arise. These include:
Technical Professional Selling. If your firm passes leads to the professional who is technically savvy on the services being sold, but has weak sales skills there may be a problem. Often times the most technical person is not the best sales person. (Note this is not always the case but it is a general rule). Despite their best intentions and vast knowledge in the area they are unable to make a connection or get to the point where the firm is invited to submit a proposal. Why? The answer is simply that sales and technical accounting, auditing and consulting require different skills sets. If the person following up on the leads does not have the correct skills it will reduce the chance of success. Consistency. The same as listed above can be said here. Define how often the sales professional should follow up with the prospect. I have personally been involved in situation where it took five phone calls before I got the “interested” prospect on the phone. It was not that they were not interested but they were busy with quarterlies, year end, etc. Remember consistent and professional follow up t every stage of the sales cycle indicates your interest in their business, but respect for their time.

The information provided above is only a brief outline of an effective telemarketing process and the pitfalls which can hamper success. The key thing to remember is that the program is only as good as the structure and professionals implementing it. Unlike many other lead generation tools executive telemarketing is highly fluid and requires the appropriate set of skills across the process.

Looking at executive telemarketing in terms of the larger marketing picture I don’t believe a firm should solely rely on it as a means of generating leads. It needs to be part of a larger plan that incorporates both push and pull methods. Some prospects will respond better to executive telemarketing than direct mail marketing. Others will not respond to the executive telemarketing but may come to you through your social media outlets because they prefer to communicate using the Internet rather the phone. Appealing to the prospect through as many mediums as possible makes the most sense for any company seeking to generate leads.

So Is It Still Effective?
Executive telemarketing is still an effective lead generation tool. Remember the name of the game is balance. Use all the tools at your disposal to find the most effective one for you. Once you have identified it continue using that method until the results tell you otherwise.

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Chad Gardner asked:




If a business, large or small, is responsible for collecting or processing any cardholder data, it needs to follow the Payment Card Industry’s compliance regulations to ensure customers’ data is secure. Here are four steps you as a small business owner can take to get started with understanding the ins and outs of PCI Data Security Standard (PCI DSS).

First, many small merchants may not understand or be able to evaluate their PCI compliance needs on their own. One of the first places a small business merchant should visit is the PCI Security Standards Council’s website (https://www.pcisecuritystandards.org/). According to the website, “…they are responsible for the development, management, education, and awareness,” which will help businesses unfamiliar with the PCI compliance assessment process get a better grasp of regulations.

Second, it will help simplify the process if a business knows what level merchant they are (from Level 1 to 4). For example, a Level 4 merchant is any business processing less than 20,000 e-commerce transactions and less than 1,000,000 other transactions per year. This Level, which may be typical of a small business, is responsible for an annual PCI self-assessment questionnaire and a quarterly network scan by an Approved Scanning Vendor (ASV). More information about merchant levels can be found at PCI DDS 101.

Third, it is important for merchants to understand there is potentially a very high cost for not being PCI compliant. With any breach of cardholder data while non-compliant, there could be costs involving investigation, chargebacks for fraudulent transactions, compliance audits, fines, and potential legal liabilities – just to name a handful.

Finally, not only is achieving PCI compliance a preventative measure and acts somewhat like an insurance policy, but it also reassures potential customers that their data security is a priority. With public awareness about consumer identity theft at an all-time high, this is an opportunity to show your customers they are valued. Once you become PCI Compliant, or if you already are, advertise it-whether on your website, in your storefront, or in your invoices. Your customers will be at ease to know it.

Following PCI guidelines will point you in the direction of understanding business security objectives, finding technology to work for the business, putting secure workplace policies in place, and monitoring those policies on an ongoing basis.

Consider acquiring a merchant account and becoming compliant with PCI DSS a cost of business and a lifecycle, not a nuisance or a final destination. The benefits of upgrading practices and systems to be PCI compliant outweigh the costs if precautions are not taken. While some smaller merchants may be worried about the expenses of upgrading their hardware, software, and security, investing in meeting the proper regulations in the beginning could prevent headaches and empty pockets in the end.

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Chris C. Sturat asked:




When it comes to any business, regardless of size, there is a law that indicates that it is mandatory to have financial record bookkeeping. In bookkeeping, a business will need to record all their financial transactions, whether it would be manually recorded into ledgers or into a computer software. If you enjoy numbers and keeping figures balances, a career in bookkeeping can be right for you.

Bookkeeping is indeed a growing profession as every business requires them. There is never the lack of job. In bookkeeping, it is more than just adding figures up; the figures also tells a person if a business is doing well or not, and it serves as a guide to help businesses keep check of their costs or make sure they are in line with their budget. In fact, financial record bookkeeping can save a business, and this can come as an exciting thing for the bookkeeper.

Bookkeeping was created more than five hundred years ago by a Cisterian monk named Luca Pacioli. He had created the basic system of double entry bookkeeping, which is still used today worldwide. Since bookkeeping systems are adopted all over the world, a person can find a career in bookkeeping wherever they are at.

For one who is interested in becoming a bookkeeper, they will need to attain the education for it plus its certification. Although the education is not necessary as some people do pick it up along the way during another career, having an education in bookkeeping adds credibility. Once they attain the education for it, they can easily apply for a bookkeeping job at a small firm. To get the certification, they will need to have worked for at least two years and pass a national exam. Then, they will be able to venture into any specialization they want. To add on, they are responsible of continuing their education every three years to update their certification.

A bookkeeper typically earns between $20 and $50 hourly, although some charge companies at a flat rate between $200 and $300 monthly. Most bookkeepers like to specialize in certain bookkeeping because this enables them to charge more.

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