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February 2007 The Rodman Report
Information and Ideas You Can Use
February is the shortest month of the year, and we are in the midst of our hectic tax season. We won't let that deter us from bringing you another edition of The Rodman Report.

In this month's issue we'll have articles on the following:

  • Not all meals are 50% deductible. Learn which meals do not have such a limitation. Make sure you take the full deductions you are entitled to. This article will help.
  • A guest columnist, Dr. Scott Chapman, will give you some tips on dealing with, and hopefully relieving the back pain that small business owners often face with their work demands.
  • Larry Rice, Director of Strategic Consulting, will show you how to very inexpensively give the gift of awesome customer service!
  • An update on some new things we have added to our website.


We hope you enjoy this issue of The Rodman Report. We'd greatly appreciate it if you forwarded this newsletter to your colleagues and friends. Click the link at the bottom of this email and you can do it in a flash. See you next time.

Best Regards From The Team At Rodman & Rodman

You Can Deduct 100% of Certain Meals
Karl Schramek CPA MST   What meals are fully deductible? Read on... dining
Meals are considered a legitimate business expense if they are directly related or associated with the active conduct of a trade or business. You must have a valid business purpose to deduct the cost of any meals. Once you have met that initial test, the question becomes one of "how much is deductible?" Most assume that any meals are only 50% deductible. In the case of the usual meal with a customer or client to discuss business, this is the case. It is also true when you have meals on a business trip, at a convention, or meal reimbursements for employees which are calculated using a per diem rate.

However there are a number of instances where you can deduct 100% of your meal costs. Here are some examples:

  • Meal and food expenses for a company party.
  • Office snacks such as coffee, soft drinks, bottled water and donuts provided to employees on premises may qualify as a 100% deductible de minimis fringe benefit.
  • Obviously if food cost is part of your cost of goods sold (restaurants and food service organizations), that cost is 100% deductible.
  • Food given to the public for free as part of an advertising or promotional campaign (not allowed if admittance to the event is restricted or "invitation only").
  • Meals reported as non-cash compensation (included on W-2).
  • Meals provided on your work premises to more than half the employees for the convenience of the employer. This is typically the case when an employer provides meals to employees who are working overtime (late and weekends), or for being on call.

I recommend that you create separate general ledger accounts for these expenses. One for the 50% deductible meals and one for the 100% deductible meals.

Don't forget to have the appropriate documentation supporting your business meals, regardless of deductibility.

Back Pain and Your Bottom Line
by Scott Chapman, DC, DABCO   Some tips to help you manage that pain... back pain
Back pain, and specifically pain in the lower back, is a common problem for busy entrepreneurs. Pain typically reduces activity level and, in the workplace, productivity. In fact, low back pain is a costly problem and employers know this well. When your work lifestyle requires long hours at the desk or on the road, back pain can be an unwelcome companion. Most back pain is due to chronic postural stress to the spinal tissues. The muscles, ligaments, joints and discs of the spinal column are capable of producing significant ache. Poor postural alignment during standing and sitting is a common culprit. If you notice that your back pain is worse with standing, sitting or driving, the following recommendations can be helpful. Position: Standing Action: Slowly side bend to the left and right and then backwards for 10 repetitions. Walk around the office for 5 minutes every hour. Position: Sitting and Driving Action: Gently rock your pelvis forward and backward and avoid slumping forward. Lower backs prefer frequent changes in position and doing so at least every 20 minutes is good advice for an aching back. Also, many studies point to spinal stabilization exercise, stretching of the hip muscles and good old fashion walking as being good medicine for the ailing lower spine. If you have tried to manage a chronically painful back on your own but your pain problem persists, seek professional help from a spine care specialist.

Dr. Chapman is a client of Rodman & Rodman and his practice, Norwell Spine & Sports, is located in Norwell on the South Shore. Dr. Chapman is a Board Certified Chiropractic Orthopedist with more than 15 years of experience in assisting people in the relief of pain, whether from injuries or other health issues. He can be reached via email at DrChapman@NorwellSpineandSports.com

Give The Gift of Customer Service Training
by Larry Rice CPA   An inexpensive way to educate your team on customer service... raving fans
Who in your company interacts with your customers? Think about it. Not just in person, but those who may speak with them on the phone when they call, those who send them invoices, or may be the person to resolve a billing problem via email. There are probably more people than you realize. Pessimistically, there could be things being said or done that is upsetting your best customers, and you don't even know about it! Optimistically, you also have allot of opportunities to wow and impress your customers repeatedly throughout a transaction. I prefer to think optimistically, but how do you ensure that those customers are being wowed? Let me give you an easy first step: Give the gift of outstanding customer service to your team. Give them Raving Fans.

Raving Fans, by Ken Blanchard is a business book, but before your eyes glaze over, it isn't your typical business book. Raving Fans is a parable, it's a business lesson, specifically a customer service lesson, told as a story. At about 130 pages, the story can be read in a couple of hours at most. It was the book that set off my career as a strategic consultant. In it's simplicity, it tells the reader how to have a customer-centric business in a very powerful way.

Read it yourself first, and then give a new copy of the book to everyone who works with your customers in your organization. Meet afterwards and see if it sets off some creative thoughts and ideas about how you can create raving fans in your business. The book is a cheap investment for what could be huge results! It changed my life, see if it changes yours.

I am providing you a link below to where you can buy it at Amazon.com. To be clear, there is nothing in it for me if you buy, other than knowing you've made a wise decision to get the book.

Website Updates - Newsletters Archived
by Larry Rice CPA   More information available resources
Our website has been recently updated. On our "Resources" page, you will now find archived copies of The Rodman Report, which we will be updating monthly to include the latest issue. So if you accidentally deleted or moved our newsletter and cannot find it, please go to our website and you'll find every edition archived.

Also in our Resources section, you'll find copies of every issue of "Successes and Strategies", my monthly print newsletter which discusses strategies to help you improve and grow your business.

We also have a link to an excellent document retention guide created by the Massachusetts Society of CPAs that you can download.

You can also get access to our extensive online tax guide which has great planning ideas and information to assist you in minimizing your tax bill.

You may want to keep the Rodman & Rodman website among your list of favorites. We will keep the site updated and add new content to help keep our clients and friends informed.

 

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phone: 617.965.5959
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