Make the 2021 Tax Season A Breeze With Tips from GROW Members

Make the 2021 Tax Season A Breeze With Tips from GROW Members

by | Feb 2, 2021 | GROW Blog

Woman doing taxes

With the tax-filing deadline quickly approaching, small business owners should be taking steps now to make the process efficient and to maximize savings.

With the right professional advice and some pre-planning, income tax season doesn’t have to be a headache.

GROW Nebraska members Cory Morris of Morris Better Bookkeeping and Susan J. Tonniges, CPA, PC, offer the following tips to maximize your income tax savings and make the tax filing process as smooth as possible.

1. Maintain accurate financial records all year.

Morris, the owner of Morris Better Bookkeeping in Kearney, said maintaining up-to-date financial records throughout the year is one key to a smooth tax season.

Cory Morris

Cory Morris

Staying on top of activities such as invoicing, reconciling accounts and loans with bank statements, and having an updated balance sheet are important.

Whether business owners prepare returns themselves or hire an accountant, accurate financial records will help.

Morris has a degree in agricultural economics and is a certified QuickBooks Pro Advisor. He is a self-described budget geek and helps business owners with monthly tasks such as invoicing, paying bills, filing sales taxes, processing payroll, budgeting and forecasting, business plans, cost accounting and preparing monthly financial statements.

Morris said business owners shouldn’t be embarrassed to ask for help with these tasks.

“Business owners have to learn everything,” he explained. “The fact that they don’t fully understand the bookkeeping doesn’t mean they don’t fully understand their business.”

His services are fully confidential and can all be completed virtually so there’s no disruption to the business. Business owners who work with him can spend more time building their businesses instead of stressing about that 10-cent difference when reconciling a bank statement.

While Morris doesn’t prepare income tax returns, he does create monthly financial statements for his clients so they know where they stand every month and can make changes sooner than later if needed. Plus, his clients are always ready with any information an accountant may need.

“Businesses working with me can take up-to-date financial statements to an accountant at any time,” he said.

2. Gather all financial records needed for the income tax-filing process.

Susan Tonniges, a Kearney-based accountant, has worked in accounting for more than 30 years, and her passion is income taxes, especially for small business owners.

Susan Tonniges

Susan Tonniges

“You guys are the bread and butter of America,” she said about small business owners. “I love working with you guys. Each one of the tax laws affects you guys.”

Tonniges said business owners should round up the following documents/financial records to file taxes:

  • An accurate listing of business income and expenses.
  • Mileage log, including miles driven for business and total miles driven. (Tonniges recommends tracking mileage on a calendar, a notebook or apps such as QuickBooks online or Mile IQ.)
  • Bank statements.
  • Loan documents.
  • Credit card records related to business expenses.
  • Business expenses paid for out of pocket (keep receipts as proof).
  • Copies of 1099 forms received.
  • Copies of 1099s sent to others.
  • W-2s and all quarterly payroll reports.
  • Copies of receipts for asset purchases (furniture, computers, vehicles, etc.)
  • Documents related to changes in ownership.

3. Understand the rules about COVID-19 PPE loans.

 Tonniges said the CARES Act and follow-up legislation has resulted in many tax law changes this year.

“The biggest controversy in the tax world has been the taxability of PPP loan forgiveness,” she said. “I think most people can agree that the intent of the lawmakers was for it to be tax-free aid, but the IRS did not agree with that position and stated that it would count PPP loan forgiveness as taxable income. The passage of the CRRSAA law in late December 2020 made it clear that a forgiven PPP loan is completely tax-exempt and is not taxable income.”

She said this year also brought changes in employment taxes.

“There are credits and/or deferments available,” she said. “Some of these credits and deferments are exclusive, meaning if you chose to take one credit, the other credits are not available and some of them work together.”

She advises business owners to work with an expert to make sure they choose the options with the most benefit.

“I think 2020, with all of the employer payroll tax changes and income tax changes, has proven to most people that it is advantageous to work with an accountant,” she said. “Accountants work with a variety of businesses and probably have some experience in your particular industry in addition to a wide base of tax law knowledge.”

When Tonniges works with a new business client, she is often able to point out some missed deductions or the proper way to take deductions to avoid penalties and interest.

“A good accountant will try to get to know you and your goals so that they can point out tax laws that might affect decisions you might have to make during the year,” she said. “I always ask my client to call me before they make major decisions so we can discuss the tax implications before the decision is made. I hate to tell a taxpayer that they owe more in taxes. It is even worse to know that I could have helped them save money if they had just called me before they made the decision.”

4. Know what expenses can be deducted to reduce your tax liability.

Tonniges said most small business owners are a bit afraid of the IRS and don’t want to throw up any ‘red flags,’ so they will not take deductions that they are unsure of.

“Business use of home and business use of vehicles are confusing subjects, and I see a lot of errors in computing proper deductions,” she said. “My goal as an accountant is to make sure that my clients get every deduction possible. Most taxpayers understand that they have to pay their fair share, they just don’t want to pay more than their fair share!”

Tonniges said another issue she sees when working with new clients is not exactly income tax-related. State sales tax law and the requirements for filing Form 1099s are complex and frequently reported incorrectly.

Other possible deductions include retirement contributions, self-employed health insurance, home office, and business use of a vehicle.

“I can’t stress enough that you find an advisor that you feel comfortable with,” she said. “You share your goals and dreams, and they can help you find ways to get you there faster and more efficiently.”

5. Plan a pre-tax appointment.

This appointment allows business owners to make year-end adjustments that could reduce their tax liability and paves the way for a more organized for your tax appointment.

Most pre-tax appointments happen in November or December.

“There are things you can do to save money, but you have to take action before Dec. 31,” Tonniges said. “So many times people come in in January, February and March and I found out I could have helped them save so much money if they would have come in earlier.”

Morris said the pre-tax meeting will also help avoid sticker shock of paying a large unexpected tax bill.

“If you are unprepared, that tax bill can hurt,” he said.

6. Assemble a team of trusted experts to help your business succeed.

“The most important thing I would tell a small business owner is that it is never too soon to start asking questions,” she said. “It seems like an unnecessary expense to talk to a lawyer, an investment advisor, or an accountant, but it is so important to get things set up right from the beginning. You are starting this business because you feel you can be successful. Talking to and planning with advisors is the best way to set yourself up for success in the long run.”

She said to think of the cost as an investment in your future.

“As an accountant, I can work with your attorney to make sure that your business entity or entities are set up to limit your legal exposures and provide for the best tax savings,” she said. “Your investment advisor can also provide input on the best retirement plans that limit your tax liabilities and still help you meet your goals and dreams for retirement. Your best steps to ensure a successful small business should include good advice from experts you trust.”

For more information or to contact Cory Morris, visit https://members.grownebraska.org/list/member/morris-better-bookkeeping-10650

For more information or to contact Susan Tonniges, visit
https://members.grownebraska.org/list/member/susan-j-tonniges-cpa-p-c-10636.

Story by Kristine Jacobson, GROW Nebraska member and owner of KRJ Public Relations, a business that specializes in helping non-profits and other businesses tell their stories and gain momentum through blogs, newsletters, annual reports, social media and other publications.

Cancer Survivor Tackles Small Business Ownership

Cancer Survivor Tackles Small Business Ownership

by | Mar 1, 2020 | GROW Blog

Cancer Survivor Tackles Small Business Ownership

A battle with cancer caused Linda Muhlbach to reassess her life and priorities.

After a year of successful treatments for colon cancer, Muhlbach saw that The Solid Rock in downtown Kearney was for sale. Bill and Ila Ballou had operated the Christian bookstore for 45 years and were ready to retire.

The timing was right for Muhlbach, who holds a bachelor’s degree in education and a master’s degree in business administration. She had previously worked in teaching and business administration.

Muhlbach purchased the store in February 2019 and just celebrated her first anniversary of business ownership.

“I have always wanted to own a small business,” she said. “It seemed to be the step God was leading me to. It has been a learning experience, but I am able to use many of the past experiences in running the store.”

Muhlbach said her faith is what sustains her through life’s ups and downs, and now she is surrounded by faith every day at work. 

“It is so important to me to be surrounded by inspiration and encouragement, and The Solid Rock allows me to share that with others,” she said. “We like to think of our store as not just a Christian bookstore, but a Christian living store, where you can find things to surround your soul with joy, beauty and inspiration from God’s Word.”  

After purchasing the business, Muhlbach made a few changes to the interior look of the store and added new product lines.

“We are seeing an increase in sales in different categories as we have expanded the gift lines,” she said. “I have worked to create an atmosphere where all ages and stages of faith will find books, Bibles and gifts to help them in their faith walk. This new product mix seems to fit everyone.”

Besides Muhlbach, her “Team Rock” includes seven other members, some who work just a few hours a week and some who work many hours.

She also decided at the time she purchased the business to join GROW Nebraska to help her learn about business ownership and marketing.

“GROW is a great resource for training, ideas and keeping up with trends,” Muhlbach said. “I am looking forward to attending my first MarkeTech this April.” 

She worked with the GROW staff to establish a website presence on the GROW website and has watched some of the marketing seminars offered.

“I hope to have time this second year of being in business to listen to more of the training webinars that GROW offers,” she said.

In the future, Muhlbach hopes to continue adding new product lines that encourage and inspire and to continue to see the store be a destination, along with the rest of downtown Kearney on the Bricks.

“Kearney, especially downtown, has a lot of hidden treasures that are worth seeking out,” she said.

To find out more about The Solid Rock, visit the business’ GROW Nebraska member page at https://members.grownebraska.org/list/member/the-solid-rock-10607

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Kenkel Shares Tips on Advertising With Social Media Influencers

Kenkel Shares Tips on Advertising With Social Media Influencers

by | Feb 20, 2020 | GROW Blog

Kenkel Shares Tips on Advertising With Social Media Influencers

GROW Nebraska member and popular social media influencer Michaela Kenkel of Elkhorn will share tips for winning customers by partnering with brand ambassadors at the April 15 MarkeTech conference in Kearney.

Kenkel operates the successful food blog called “An Affair From the Heart” that reaches millions of eyes each month, including 7 million monthly views on Pinterest and about 6 million monthly views on Google. Her enterprise, which started more than a decade ago, now has more than 180,000 followers on Facebook, more than 3,000 on Instagram, 40,000 on Pinterest, and more than 8,000 subscribers to her weekly recipe email.

She serves those followers with trust, sincerity, love and kindness and they respond with “likes” and “shares.”

“I take a lot of pride in developing relationships with my audience,” Kenkel said. “I engage with my readers a lot, and I feel like I’m tuned in to what they like and what they don’t like.”

Besides creating her unique recipes, Kenkel works as a brand ambassador to business owners and food entrepreneurs, such as Frank’s Kraut, Dorothy Lynch and Spice Isle, to create new recipes using their products. She then shares those recipes with her audiences to create momentum and generate sales for those companies.

Kenkel will present “Satisfy an Appetite For Your Brand: How to Win Customers and Influence Brand Appeal in the Age of Social Media” at one of the break-out sessions at MarkeTech, where she will share her advice on working with brand ambassadors.

Kenkel said her presentation will appeal to marketers, business owners, entrepreneurs and aspiring brand ambassadors and influencers.

For those who aren’t aware of this relatively new marketing tool, Kenkel said a brand ambassador “is a person who is hired by an organization or company to represent their brand in a positive light.”

By doing so, it increases brand awareness and sales among a specific audience.

“A brand ambassador works as both an ‘influencer’ and a ‘sales representative’,” Kenkel said. “A brand ambassador’s role is to introduce a brand and communicate its virtues organically through its existing audience and social channels and also provide opportunities for sales or similar conversions.” 

After the presentation, Kenkel said attendees will have a better understanding of social media and how to leverage the power of influencers and bloggers in advertising.

“Participants will learn how to find suitable influencers and brand ambassadors, establish and track goals for a successful relationship, plan for content and set deadlines, and monitor progress through statistical analysis,” she said. 

She also will show business owners how to create a successful social media strategy by working with legitimate brand ambassadors and influencers. Kenkel will focus on social media channels that she uses, including Facebook, Instagram, Pinterest and Twitter.  

“They will learn what works and how to avoid common pitfalls,” Kenkel said.

Other takeaways from her presentation include:

  • The difference between being “influenced” and being “convinced.”
  • How to measure “likes,” “shares” and other online stats to evaluate performance.
  • Why a brand ambassador is so much more effective than any type of advertiser promotional resource.

In addition, Kenkel will share tips with aspiring brand ambassadors and influencers, who will learn how to work with companies and how to grow their audiences to make themselves more attractive as an advertising asset. 

Early bird registration for the conference ends on March 20. The price is $99 for a half-day and $199 for the entire day for non-GROW members and $59 for GROW Nebraska members. The registration fee includes breakfast and lunch and full conference registration, including two breakout sessions, the keynote speaker, chances to network, conference swag and the VIP After Party at McCue’s Nebraska Taproom in Kearney. To register, visit marketechconference.com/registration

GROW Nebraska® Foundation is a statewide non-profit training and marketing organization. Serving over 400 Nebraska small businesses, the organization provides marketing opportunities, education, and training to launch and connect Nebraska businesses to the global marketplace. GROW Nebraska’s educational programs receive federal and state funding, along with generous support from foundations and individual donors.

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Former Professional Musician Promises Entertaining Marketing Presentation

Former Professional Musician Promises Entertaining Marketing Presentation

by | Feb 12, 2020 | GROW Blog

Former Professional Musician Promises Entertaining Marketing Presentation

Scottsbluff business owner Don Osborn spent more than 30 years on stages as a professional musician and songwriter, and now instead of singing on stage, he’s sharing his expertise in marketing.

His upcoming presentation, “Marketing for People Who Hate Marketing,” at a breakout session of the April 15 MarkeTech Conference in Kearney promises to be entertaining, interactive and highly educational.

Osborn spent most of his musical career in Canada. Five years ago, he moved back to his hometown of Scottsbluff, where he owns DBO Digital Marketing. He works primarily as a marketing consultant for B2B companies.

“For anyone who feels overwhelmed by marketing, let alone creating a marketing department, this presentation is for you,” Osborn said. “We will look at the four steps you can take to build or update your marketing plan using both the latest digital tools and traditional methods.”

As a solo entrepreneur for most of his life, Osborn become his own professional marketing manager. His digital marketing training began about 12 years ago and now includes web design, SEO and social media advertising.

He has presented his “one-day marketing makeover workshop” at Western Nebraska Community College, along with workshops on social media, video creation and songwriting. He also has taught numerous business, marketing and public speaking classes at the Art Institute of Vancouver, B.C.

Osborn will share a big-picture view that makes marketing less overwhelming for business owners and marketers.

“They get caught up in the minutiae of the latest and greatest FB techniques,” Osborn said. “We get bombarded with all the little moving parts. Most people are just too busy running their businesses to worry about that, yet they know it’s important.”

His presentation will introduce systems to attendees making marketing more manageable.

“My presentation is designed to break down the whole process into bite-sized pieces and show them a process they can go through so they can organize what they need to do,” Osborn said. “It gives them a blueprint for how to tackle it.”

The hour-long presentation will be divided into four parts:

  • Marketing Toolbox Inventory
  • Inventory Upgrades
  • 30,000-Foot Marketing Plan
  • Implementation Plan

“They will walk away with a checklist that they can use to review their entire marketing toolbox so they can get a sense of what they have and don’t have and can prioritize,” Osborn said.

Don’s presentation will appeal to business owners, marketing managers and even those who are well versed in digital marketing.

“Each company is a little different,” Osborn said. “With this presentation, they can see what all the basic elements are and pick and choose the right tools for them.”

Early bird registration for the MarkeTech conference ends on March 20. The price is $99 for a half day and $199 for the entire day for non-GROW members and $59 for GROW Nebraska members. The registration fee includes breakfast and lunch and full conference registration including three breakout sessions, the keynote speaker, conference swag and the VIP After Party at McCue’s Nebraska Taproom in Kearney. To register, visit marketechconference.com/registration.

GROW Nebraska® Foundation is a statewide non-profit training and marketing organization. Serving over 400 Nebraska small businesses, the organization provides marketing opportunities, education, and training to launch and connect Nebraska businesses to the global marketplace. GROW Nebraska’s educational programs receive federal and state funding, along with generous support from foundations and individual donors.

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A Gourmet Hot Chocolate From Nebraska is Taking the Nation by Storm

A Gourmet Hot Chocolate From Nebraska is Taking the Nation by Storm

by | Jan 14, 2020 | GROW Blog

A Gourmet Hot Chocolate From Nebraska is Taking the Nation by Storm

When Jasmin McGinnis worked at Barista’s Daily Grind in college, she discovered the “best hot chocolate in the world” was served at that Kearney coffee shop. She and the other baristas enjoyed the drink year round.

Jasmin purchased that coffee shop (with two locations in Kearney) in 2014. Two years later, she worked to enhance the recipe and rebrand the hot chocolate as Cup of Coa™. She is now traveling the country promoting her product at trade shows and is already selling it wholesale to coffee shops, boutiques, gift stores and grocery stores in 10 states.

Jasmin’s gourmet milk chocolate powder is unique because it’s made with less than 1 percent artificial ingredients and flavors. Although it’s made by mixing it with water, it’s creamier than milk-based hot chocolates. The powder won’t settle to the bottom, and it can be mixed into a hot or cold drink with the same base.

“When you taste it, it creates an experience, and you will remember that experience,” Jasmin said.

Cup of Coa can also be turned into a chocolate sauce. Purpose Roasters, a chocolatier/coffee shop in Washington, creates specialty bon-bons using Cup of Coa as a main ingredient.

The retail Cup of Coa product is packaged in 10-ounce tins designed by Jasmine. In addition to being popular at coffee shops, the creative tins are grabbing customers’ attention in grocery stores and boutiques.

“What’s shocking me right now is the retail line,” Jasmin said. “People want it in their homes, and they are coming back over and over again.”

Jasmin said she didn’t set out to become a promoter of hot chocolate, but this product has fired up a passion in her.

“Probably 80 percent of my success can be attributed to this being the right time,” she said. “The other part is pure passion. I think people are usually more successful if they are passionate. I didn’t know I was going to be passionate about this, but I really do think it’s the best hot chocolate anyone’s ever had.”

Buy Cup of Coa here!

GROW Nebraska® Foundation is a statewide non-profit training and marketing organization. Serving over 400 Nebraska small businesses, the organization provides marketing opportunities, education, and training to launch and connect Nebraska businesses to the global marketplace. GROW Nebraska’s educational programs receive federal and state funding, along with generous support from foundations and individual donors.

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