Business Information for Entrepreneurs by an Entrepreneur

Accounting for your financial transactions is an absolute must. While thankfully the days of performing each and every financial transaction by hand (in duplicate!) is gone, there are so many types of accounting software you can now use that it is difficult to pinpoint a specific brand or type.

Accounting software has evolved over the years to a point where you can get a very powerful software package for as little as a few hundred dollars. But is cheaper accounting software the best for your business?

The Basics

If your business is truly "small" in the sense that your revenues are just a few thousand a month, you may certainly get along well with a basic accounting software package such as the popular Peachtree or Quickbooks Pro. These affordable solutions offer the very basics most small businesses need, such as accounts receivable/payable, general ledger, payroll, customer databases, and inventory.

These affordable accounting packages will keep your business records clean and provide easy-to-read reports. Most types of basic business software run from $200 to $500.

Fixed Assets

Most accounting software packages have fixed asset accounts. However, if your business is filled with multiple types of fixed assets, a more advanced solution may be needed to keep track of every depreciation dollar.

Cost Accounting

If you are a small manufacturing business, you may need a little more accounting power to help you with cost accounting. Cost accounting helps you determine where every dollar is spent in the manufacturing process, and it is a helpful way to know a near-exact cost of each product made. More advanced software packages in the $500 and up price point may be the choice for you.

Advanced Reporting

All reputable accounting software packages come with some form of reporting. However, the basic boilerplate reports sometimes don't provide what you need. If you require more advanced control over your accounting data reports, consider a higher-end brand of product.

Multiple Licenses and Support

If you utilize accounting software with a variety of employees, support and multi-licensing is highly important for the software you use. A higher-end accounting package upwards of $1,000 to $2,000, with additional monthly support and licensing fees that may be required.

While there may only be a few months left in 2010, it's never too late to continue planning and taking advantage of small business tax deductions before the year is over. In fact, the recent legislation for small business tax relief from the US Senate is slated to become law soon.

What does the new $12 billion tax relief legislation contain? Here is a brief rundown of the potential tax savings and deductions you can make before your 2010 fiscal year ends.

Capital Expense Deductions

Small businesses who are looking to improve or add new capital improvements can be happy to know that the deduction amount has increased to $500,000, up from $200,000 previously. That means you can add new equipment, computers, furniture, machinery, and other fixed assets, deducting the purchases from your taxable income. Purchases can be made in 2010 or 2011.

Deduct Your Startup Costs

Starting a small business costs money. The US government usually allows a $5,000 deduction for startup expenses, such as marketing and promotion, legal, and accounting. The good news is that amount has been raised to $10,000 for the year 2010. Therefore, if you're in the middle of getting your business off the ground, or are contemplating a startup, do it before the year is out so you can deduct these costs from your 2010 taxes.

2010 Depreciation

The new capital equipment you purchase this year can be used to reduce your taxes. You can deduct up to 50% of the purchase this year, instead of writing off the depreciation over a period of a few years. This tax deduction will also extend into 2011.

Other deductions you can take advantage of before the year is out include:

• Reduced capital gains taxes on 2010 business investments
• In certain instances, the costs of business cell phones
• Health insurance costs for those who are self-employed and buy their own individual insurance policies

Taxes do not need to be dreaded. Take advantage of these tax reduction opportunities for your business before 2010 says goodbye.

If you're like 20 percent of all small business owners, you have developed a social media policy to help promote your business. If you're like 82 percent of those who do use social media (according to the 2010 State of Small Business Report published by Network Solutions, LLC), you have created a Facebook business page.

What is a Facebook business page? Unlike a personal page, a business account on Facebook allows a user to gather "fans" instead of followers. With more fans, the more you can spread the news about your business with regular posts and updates.

However, how do you effectively manage your Facebook business page to get maximum results? Here are a few tips:

Complete Your Profile

Try to completely fill out your business profile on your account. Use the Basic Info to provide your business location, telephone, etc. However, provide more elaborate information in the Detailed Info section of your profile. Include your website and other important links, as well as information you feel would be helpful to your fans.

Post Photos of Yourself and Other Key Employees

Your photo is your "avatar" or representation of yourself. Make sure it is a good representation. Professional business photos with a few casual shots can help a reader understand your company better by the people who run it.

Get your Facebook URL

Your business page comes with a unique URL. Use this URL to easily direct customers to your Facebook site through other correspondence such as emails, blog posts, business cards, and other marketing materials.

Use Facebook Ads

Facebook advertising is a great way to reach your customer base on a social network with over 500 million active members. You can create short ads and choose who sees your ads based on age, location, interests, etc. Facebook has flexible pricing for ads, allowing you to even pay per click or pay whenever your ad is seen. Like pay per click, you can set the daily budget you want.

Post a Link to Your Business Newsletter in Your Profile

If you share an email or printed newsletter, be sure you post a link to where your Facebook fans can sign up. This can be done on your profile page.