The prices you set for your products and services affect every aspect of your business, including long-term viability, short-term profits, market share, and customer loyalty. While the guidebook or financial guru who can provide the perfect answer to this important decision doesn't exist, tried-and-true principles can help. Here are three suggestions to arrive at reasonable pricing for your market and industry.
Cover costs. The price you charge for a particular product must at least equal the cost of producing that product. Depending on your industry, production costs might include raw materials, storage, salaries, advertising, delivery, rent, equipment, taxes, and insurance.
If you haven't revised your businesses chart of accounts since you initially set it up, you may be missing out on an easy way to simplify your life at tax time. That's because your chart of accounts is more than a basic bookkeeping tool. Your chart can also help you keep track of items that affect your tax return.
For example, your business income may have multiple sources, including the sale of goods and services to customers, rents, royalties, interest, dividends, gains from the sale of business and investment assets, and "miscellaneous" receipts.
The "Older Americans Act Reauthorization Act of 2016" was signed into law in April, and May is Older Americans Month, a national celebration of the many contributions of older Americans. Both events present a good opportunity to talk to your family elders about financial safety.
One place to start: The top ten scams reported to the U.S. Senate Aging Committee's Fraud Hotline. Number one on that list is a tax scam that plagues every age – receiving calls from fraudsters posing as agents of the Internal Revenue Service.
The death of a spouse is emotionally and financially devastating. Making decisions of any kind is difficult when you're vulnerable and grieving, but having a plan to follow may help. Here are suggestions for dealing with financial tasks.
● Wait to make major decisions. Put off selling your house, moving in with your grown children, giving everything away, liquidating your investments, or buying new financial products.
● Get expert help. Ask your attorney to interpret and explain the will and/or applicable law and implement the estate settlement. Talk to your accountant about financial moves and necessary tax documents. Call on your insurance company to help with filing and collecting death benefits.
As a manager, you are no doubt swimming in a constant stream of financial information. Fortunately, you can keep your head above water by boiling down the data into a format that's relevant, concise, and user-friendly. For instance, significant indicators can typically be gathered on a single sheet of paper. Examples include:
- Revenues by product or service line.
- Cash and accounts receivable balances.
- Gross profit ratios by product line for retail and wholesale businesses.
- Productive salaries and benefits for service businesses.
- Marketing costs for each product or service line.
- Bad debts.
- Returns and warranty claims.
From an April 18, 2016, post on Fox Business.
For months now, businesses of all sizes have been holding their collective breath waiting for the Department of Labor (DOL) to implement rule changes that could have a significant impact on labor costs. The proposed changes to the Fair Labor Standards Act (FLSA) would increase the salary level for “white collar” exemption from the current minimum of $455 per week, or $23,660 a year, to $970 per week, or $50,440 annually.
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