We hear every day that the world is becoming more environmentally conscious and taking steps to “go green”. Small businesses may feel that some of the “greener” options are out of reach for them, but here are a few that a company of any size can do.
• Recycling – Most communities provide recycling centers, therefore it should be fairly easy to provide internal receptacles and to transport or purchase recycling pick-up services. These recycling services will pick up items such as paper, including shredded, newspapers, magazines, and plastic items.
• Installing energy-efficient light bulbs – It is very easy to find energy efficient light bulbs as a greener alternative to regular incandescent bulbs. They often last 20 times longer than standard bulbs and use one tenth of the energy,
• Going “paperless” – Many companies are making vast efforts (including Bakken CPA PC!) to be as paperless as possible. To reduce paper, begin using electronic portals for clients to upload and download files.
• Offering “green” shopping bags – Consider distributing to your customers, clients, and prospects a reusable shopping bag with your business logo. You take a step toward environmental consciousness, while gaining some publicity at the same time.
• Providing favored parking spaces – Offer visitors to your office a little perk for helping the environment. Designate special parking spots for hybrid vehicles and more fuel efficient transportation, as a thank you for going “green”. Also, be sure to have easily accessible bike racks!
These are simply steps a small business can take toward “going green”. The benefit to your business includes energy cost savings and maybe a bit of publicity, plus making a contribution to a healthier environment.
Tag Archives: energy efficient
Ways to Keep a Natural Disaster from Becoming a Financial Disaster
What if a natural disaster hit your home? Knowing how to cope with a natural disaster and taking the right steps after one can help you protect your surviving assets and rebuild successfully.
There are three vital tips to remember when assessing the damage to your home:
- If there is a question about whether the home is inhabitable, contact local building authorities for a decision.
- Contact your insurance company to establish a claim, but do not settle immediately.
- If you are able, make temporary repairs to prevent further damage. This could include placing tarps over broken windows or having a professional put a tarp over a hole in your roof to keep rain from coming in.
If you are not a construction professional, it is not always wise to handle an insurance claim on your own. It will be difficult for you to estimate the cost of repairs if you do not have a qualified person to come up with the figures. But, be sure to get the insurance claim figures before hiring a contractor, because you do want to be sure that you will have enough to pay for the repairs.
Consider consulting your relatives, friends and neighbors for recommendations on a contractor. Initiate the conversation with contractors by asking for estimates, not by responding to sales pitches. It has been seen that in times of disasters, contractors may come into the area looking for work and may not have the appropriate licenses and insurance. It’s recommended to get around three bids for your job, you will have three contractors come into your home and evaluate the damage. You will then hear from three different people the problems in your home and their ideas as to the best way to fix it. This process should help give you a good understanding of what needs to be done and who will do the best job.
Not sure how to plan ahead? Start by taking these few precautionary steps that will ensure that if a natural disaster occurs, you are a step ahead:
- Make a photographic or a video inventory of your valuables for insurance purposes. Jewelry, antiques, valuable collections, and electronics are among the items that should be included.
- Protect important documents such as marriage and birth certificates, car titles, and insurance policies in a locked, fireproof, and water-resistant location. Backup copies of documents also can be scanned and placed on a flash drive to be stored in a bank safety deposit box. Contact information for important people such as your lawyer, accountant, and insurance agent also can be placed on the flash drive.
- Carefully assess whether your insurance is appropriate for the risks faced in a specific area. Insurance for floods and earthquakes is not included on many homeowner policies and may need to be purchased separately.
It is important to do all precautionary tips in advance of a disaster striking your home. This will allow you to have the time to deal with more important things in the wake of a crisis. For more information on how to be prepared for a natural disaster, contact your accountant today.
How Working with an Accountant Can Help Guide Your Construction Business to More Savings
An accountant is not just someone that you should turn to at tax time. They can also offer you guidance and advice all year long that will help you consistently improve how your business operates, take advantage of tax saving opportunities and increase your profits.
Here are a few ways that an accountant could help you:
- Available Tax Credits: There are a lot of tax credits that are available to builders that you may not be aware of, but your accountant would. For example, credits and deductions for placing in service energy-efficient properties.
- Workers’ Compensation Savings: An accountant can check to be sure that your insurance agent is helping you save money through credits, such as the Drug Free Workplace Credit, Safety Credit and Contractors Premium Rate Credit.
- Updating Overhead Percentages: Many small increases to overhead costs over time can result in a large increase to the total overhead percentage that is applied to each job. Updating this figure ensures you always bill your jobs with the appropriate amount of overhead to be sure you are making enough profit.
- Work on your Accounts Receivable Collections Weekly: Checking on your receivables weekly allows you to obtain your payments faster, instead of reviewing them monthly. Create invoices and requests as soon as contractual requirements have been fulfilled to speed the recovery process.
- Set Up Rolling Cash Flow Projections: Having a cash flow projection can help you see how your business is performing financially compared to how you expected to perform. An accountant can help you establish a 12 month cash flow projection that you are able to update weekly to see your actual cash flow as the year progresses.
There are many ways an accountant can offer assistance and insight into how to improve your profitability. If you do not have a year round accountant to work with you should consider meeting with one to see if it right for your business.
Fixing Up Your House May Lower Your Taxes!
If you have done any work on your house to make it more energy efficient before January 1, 2012, you may be able to claim a credit on your tax return!
There are two credits the IRS call
- Nonbusiness Energy Property Credit and
- Residential Energy Efficient Property Credit.
These credits were supposed to expire in 2010 but were extended by one year to 2011 and have new rules and limitations.
The Nonbusiness Energy Property Credit is a nonrefundable credit that relates to your primary residence. The credit rate for 2011 is 10 percent of the qualified energy efficiency improvements cost. Qualifying improvements can be replacing items such as
- exterior doors,
- windows,
- insulations,
- heat pumps,
- furnaces,
- water heaters or
- central air conditioning
The maximum lifetime limit is $500, which means that if you have already claimed this credit on a previous tax return, you may not be eligible to take it again, if your earlier credit was equal to or over the $500 maximum. Qualifying improvements must have been installed during certain time frames; before January 1, 2008, or after December 31, 2008 but before January 1, 2012.
The Residential Energy Efficient Property Credit has been established to help taxpayers pay for residential alternative energy equipment in their primary residence. The credit equals 30 percent of what the taxpayer spent on the qualifying equipment and can include labor costs. This relates to the costs of
- eligible solar water heaters,
- solar electric equipment,
- fuel cell plants,
- qualified small wind energy property and
- qualified geothermal heat pump property
These pieces of equipment must be installed before January 1, 2017. There is no set maximum for this particular credit, except for the fuel cell plants. However, there is a limit on the amount of nonrefundable personal credits a taxpayer can claim in one year. Any amount over this limit can be carried forward to the next year.
It is important to know that not all energy efficient improvements qualify for these tax credits, so you should check the certifications of the products before you begin improvements. These credits can be claimed on Form 5695 when you file your 2011 tax return. Keep in mind that it is best to consult a tax professional before claiming these credits!