New Year's Resolutions for Your Home Business
by Donna Schwartz Mills

"Happy New Year" may be the most positive phrase in the English language. For those whose fortunes were less than they desired over the last twelve months, the new year is an opportunity to close the book and start afresh.

Those lucky souls who came out ahead this year can pat themselves on the back and look forward to repeating their success in 2001. No matter which end of the spectrum you fall into, the hope that springs eternal on January 1 is something we all tend to share.

It seems that every culture enjoys a new year's holiday, and that our tradition of making resolutions dates back to the ancient Babylon. Teacher Jerry Wilson of http://www.wilstar.com says the most popular Babylonian resolution was to return borrowed farm equipment. While times and the details may have changed, today's home-based entrepreneurs are also concerned with improving relationships with colleagues and customers - and making their businesses grow. There are lots of changes we can make in our day-to-day lives that can increase our chances of
looking back on 2001 with fondness - and January is the perfect time to start.

Resolution #1: Keep Better Records

If you tend to stick your receipts in a shoebox or at the bottom of your handbag, you already know the heartbreak of trying to make sense of your tax returns. You are probably losing some legitimate deductions! Get in the habit of saving and categorizing every receipt, clearly marking those that are 100% deductible. Devise a workable filing system and use it! 

Resolution #2: Watch Your Miles

Do you keep track of your auto mileage for business? If not, you will be surprised at how much you can save on your taxes once you start - the 2001 rate will be 34.5 cents per mile. However, it's imperative that you keep careful and accurate records in case of an audit. Note your mileage at the start of each month and keep track of all miles you incur in the course of conducting business. Keep an auto expense journal in your glove compartment or buy expense tracking pages for your ring-bound organizer. Tax expert Jeff Schnepper tells his clients to keep a tape recorder in their cars to record mileage and expenses as they occur, as a supplement to their paper journals. "Accumulated tapes blow the IRS away in an audit," he says. You can find some nice shareware for tracking auto expenses at: http://www.winappslist.com/hobby/automotive_apps.htm

Resolution #3: Get Your Accounts in Order

If you've put off getting a business bank account or installing that new accounting package, this is the best time of the year to start. Remember that a separate bank account is one of the factors the IRS uses when deciding if your home enterprise is a business and entitled to business-related tax deductions. (Other factors are whether you have business cards and stationery, have advertised or can document that you've been trying to generate business). For more tax advice, visit our friend, Eva Rosenberg (aka the TaxMama) at: http://www.taxmama.com

Resolution #4: Provide Better Customer Service

Vow to answer your email in a timely manner, change your business voice mail on a daily basis, and treat your customers as you would like to be treated. For more suggestions on growing your business with good customer service, go to: http://www.parentpreneurclub.com/ppc_cserviceart.html

Resolution #5: Update your Business and Marketing Plans

You can't get to your destination without a roadmap, and these are your guides to business success. For specific suggestions, go to: http://parentpreneurclub.com/Archive/aaeditor1001.html

Resolution #6: Make Time for Yourself

Home-based entrepreneurs are often running in several different directions - all at once. They shift gears at the drop of a child's skinned knee, only to shift right back when a client calls. Many who work at home are so busy taking care of their families and businesses that they overlook the most important ones of all: Themselves. Vow this year to give yourself a few hours each week to do something just for you - be it exercise, coffee with friends, a bargain matinee -- or anything else that you enjoy. 

To paraphrase the late Dr. Seuss: These things are fun and fun is good...This year is gone, this year was fun and next year is another one!

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