Did You Know About This? Somerset Accountant Asks

Did You Know About This? Somerset Accountant Asks

January 20, 2012

“I have learned that success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome while trying to succeed.” – Booker T.

Washington This one slid under the radar. Many business owners who accept credit card payments are about to get a mysterious form in the mail over the next few weeks. It’s called the “1099-K” and it looks like this (pdf download link). It’s a new little gift for small business owners from the IRS, and they are due to the IRS on April 2, 2012 (normally March 31), while paper 1099-Ks are due February 28, 2012.

Essentially, if you had over $20K of revenue paid via credit card, your merchant account has reported it to the IRS. And they want you to do so as well. Just, you know, to make sure that you had your numbers right. After all, the IRS is most interested in ensuring your books are nice and up-to-date, right?WRONG. They think you’re cheating. And with the reported “tax gap” continuing to increase, they’re not always wrong. (About the other guys, not you!)

So, yet another reason for you to make sure that you have someone meticulous, experienced and careful in your corner as you ready your books for tax preparation. I wonder who that could be? Hmmm… Moving on, I spent some time, over the weekend, perusing some academic articles on entrepreneurship. Aside from the unrealistic reliance on the VC model, there was something else which nagged me throughout my browsing. It was the over-emphasis on the notion of the BIG IDEA, as the primary component to a successful entrepreneurial venture. Will you allow me to go on a short rant today? I actually have something important to say here, relevant to what you have to focus on every day, as I do so…

Mark Clark’s “Real World” Business Strategy Two Primary Mental Obstacles To Successful Entrepreneurship

I’ve sat down with hundreds of entrepreneurs. Some very successful and some not-so-successful. This morning, I was thinking about the not-so-successful ones and I realized they could be divided into two groups: those with the Big Idea Myth and those with Analysis Paralysis. You see, the big idea isn’t the “holy grail”.

No, the main component of success is the execution. But those who fall for the Big Idea Myth jump into idea after idea, full of excitement and ambition, only to fall flat. It’s a simple matter that they fail to realize that success comes from execution, *not* the idea.

On the other side are the entrepreneurs and budding business owners who are too afraid to act. They think, analyze and talk until they’re blue in the face, but they don’t take action. Their paralysis keeps them in their cushy corporate job or in the comfort zone of their modest small business. They’re paralyzed, and unable to jump in and act.

Yes, I’m a tax professional–and averse to unreasonable risk. But I believe that the key for successful entrepreneurship is to be in the middle of the spectrum: act on the idea (almost any idea will do), but realize that execution is everything. I’m personally dedicated to your success. Can other accountants say that?