Happy New Year!!

I’d like to begin this message with a heartfelt thank you to Karen Ziegler and her crew for a lovely holiday celebration at the University Club.  I don’t think we’ve ever had Santa before!  GREAT JOB KAREN & CREW! 

Here it is January again and while I always enjoy the additional income that year-end produces, I also feel an urgent need for an exotic beach vacation when it is over.  Start early, stay organized, drink lots of water, remember to stretch and breathe—it will be over before you know it and you will be done.  I’m looking forward to the fresh new year of 2003.  I wish you and yours peace, love happiness, health and prosperity!

Maureen McLimon Turk
President

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COME AND LEARN       

Sandy O’Meara wants to remind everyone that Santa Barbara City College classes begin on January 21, 2003.  In addition to Intro to Accounting, Payroll Accounting, Accounting with QuickBooks, Financial Accounting, and Managerial Accounting classes, there is a new course:  Accounting with MS Great Plains Dynamics.

Want to brush up or improve your payroll knowledge?  Carolyn Terry (SBBA member) will be teaching the Payroll class at Santa Barbara City College Thursday nights from 6:00 to 9:50p.m.  January 21 through May 30, 2003.

Visit the City College web site: http://www.sbcc.net for further details on all the classes.

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In keeping with Board policy and the stated purpose of the organization to provide an exchange of information and further the education of our members, the Newsletter Committee will maintain a calendar listing of educational opportunities available to members and the public.  This listing will contain information that you send in.  Please send your contributions to the editor.

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ONLINE FILING OF FORMS
Submitted by Monica Dittrich

From the SSA/IRS Reporter, Fall 2002

Were you aware that business taxpayers can file their unemployment tax returns as well as perform other payroll related reporting completely online?  All you need is a computer, modem, and Web-based Internet access and you can electronically file your Forms 940, 941, W-2s, 1099s through an Approved IRS e-file for Business Provider.  You can find a listing of companies who offer this service by visiting the Approved IRS e-file for Business Providers page at www.irs.gov.  You’ll also want to visit the IRS e-file for Business Partners page that contains special offers from IRS e-file for business partners.

What else can you file online?  In addition to 940, 941, W-2s, and 1099s e-file, other payroll related reporting can be done online using the Internet and an approved provider.  The business return filer visits an approved provider’s Web site and enters the required information online.  The approved provider then sends the information such as Forms QWF and 1099-Misc. Correction to the IRS using the FIRE (Filing Information Returns Electronically) system.

For your information, www.fileyourtaxes.com is our nearest IRS Approved Business Provider.  They are in Oxnard.  When you go to www.irs.gov click the icon IRS e-file for complete and comprehensive information regarding IRS online tax form filing.

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BUSINESS PLANNING
YOUR BLUEPRINT FOR BUSINESS SUCCESS
Submitted by Brenda Richter, CPA

Running a business without a business plan is like rock climbing blindfolded.  Your chances of making it successfully to the top are slim.  And the process will surely be a death-defying one.

Contrary to popular practice, a business plan is not a means to securing financing.  Instead it is a step-by-step guide to running your business and creating a product or service that will make it in the marketplace.  And like any other map, your plan will have to be adjusted according to your vision for the company, conditions and opportunities in the marketplace and your business’ current condition.

Whether it is formal or informal, every business has a plan.  The local hair salon may not have formally written down the plan but before setting up shop, a smart owner would have assessed the need for a shop in that area of town, the ability to attract clients there, the appropriate amount of chairs, whether to hire someone to do the shampooing and sweeping, the cost of utilities and the parking availability  for clients.  The owner who waits to figure these things out using trial and mostly error will be lucky to be left with his/her wits, much less any customers.  A business plan minimizes pitfalls.

 Several things a business plan should consider are:

1.       What is a reasonable expectation of profitability and when?

2.       How will the business pay you and any team members?

3.       What are the estimated expenses?

4.       What is the pricing strategy?

5.       What is the need for what you are offering and what profit margin can you expect?

While much of this may have occurred to you informally, it is very important to write it down.  If you ever need to approach a bank or investors, you will need it.  Writing it down will reinforce your vision, give you a reference point for checking the progress of your business and will most likely bring up factors you did not consider when creating the plan in your head.

Writing your business plan down:

1.       Helps you determine and coordinate all aspects of business operations.

2.       Gives you a means to analyze and determine what might be the best change to boost your    business out of a stagnant situation.

3.       Assists you in determining the risks and benefits associated with any changes.

4.       Decreases your chances of making a mistake or not considering important factors in your business.