March 2016

Customer disputes are part of doing business. However, you can avoid disputes and retain your important customer base when you try these tips.

1. Prepare a written agreement before you sell anything. 

   This legal and binding document outlines the products you sell or the services you provide, and it includes pricing details. It also should include all terms and conditions. You don’t want to add terms to the invoice after your customer signs it.

2. Have professionals proofread the agreement. 

   Your attorney and tax professional will ensure that the document is legal and inclusive.

3. Be sure all authorized signers read and understand the agreement. 

   As the business owner, you need to understand the contract you’re asking your customers to sign. Any employees who are also authorized to sign the contract should understand it, too.

4. Identify your customer who is signing the contract. 

   Your client may by a corporation or company, but you need to be sure you’re meeting with an authorized representative of that company. The contact person must have permission to make the deal and sign contracts. Otherwise, the agreement could be void.

5. Have both parties sign the agreement. 

   Don’t provide goods or services without having both you and the customer sign the contract. This important step can protect you from expensive litigation.

6. Maintain detailed time sheets if you charge by the hour. 

   You’ll give the customer a reasonable expert before you start working, but keep detailed records of how you spend your time and what you accomplish as you reduce disputes about charges and results.

7. Remain professional at all times.

   It’s tempting to tell off a customer who complains about a lopsided display or the temperature of the office. Staying professional and keeping a smile on your face can go a long way toward diffusing tension, though. Teach your staff how to remain professional in all situations.

8. Prepare a procedure for processing complaints. 

   This step includes who deals with problems, how long you spend on resolving the conflict, how to handle an escalating situation and what to do with unresolved complaints. Everyone in the company should understand the chain of command and what to do when a customer is upset.

9. Admit mistakes. 

   Even though your written agreement includes all the details of the goods and services you offer, you and your staff are human and may make mistakes. Admitting when you mess up is good customer service.

When you avoid customer disputes, you provide a positive experience for your customers and improve employee morale. Try these tips today as you grow your small business.

Over 40 percent of the world’s population uses the Internet. Your potential to reach your existing and new customers expands when you get online, too. You’ll be able to sell your product anywhere you can ship it, meet virtually with clients from around the globe, connect personally with customers and share important information about your business, including the hours you’re open or your menu. Today, being online is almost essential for a small business, but there are risks. Before you run to set up a website, social media accounts and e-commerce site, learn about the risks of doing business online.

Internet Security

When you collect personal information, including addresses and credit card numbers, you have the responsibility to protect that data. Hackers who target your website could gain access to sensitive information and put you at risk for a lawsuit. Understand firewalls and other protections you need and have them in place before you open for business.

Legality

Depending on what goods and services you offer, you may be prohibited from selling or shipping to certain areas. You’ll also need to collect and pay taxes, which vary by country, state and even city. Be sure you understand the laws before you do business online.

Fraud

Accepting credit cards or bank information over the phone is risky. You don’t know if the person buying the item actually owns that financial information. You also could also receive false shipping information, which means you lose that merchandise and its income.

Time Commitment

Remember that you’ll need to update your online profile regularly so that your information is fresh and accurate. Be prepared for trolls, too, as your audience expands. These activities require time, so decide now if you have enough time to handle an online presence.

Searchability

Your website, blog and social media posts compete with thousands of other voices for attention. If you don’t use the right keywords, no one will find you, and you’ll be wasting your money. Be sure you have the right resources to maintain your company’s searchability before you commit to going online.

Ongoing Cost

In addition to paying for your website and web hosting, you’ll need to pay someone to update your online presence regularly. Consider whether or not you can afford this expense and if it will improve your bottom line.

Your small business can benefit from a website, e-commerce site and social media accounts. Know the risks and prepare accordingly to ensure you and your customers are protected.

Like a small leak can cause a major flood if it’s not caught soon enough, careless conversations can ruin your small business. It only takes one casual comment or discriminatory joke to set off lawsuit and ruin your company and reputation. Take note of three types of conversations and avoid them as you communicate with your employees, partners and clients and protect your livelihood.

1. Empty Threats

   It may be tempting to motivate employees by threatening to demote, suspend or terminate them if they don’t meet sales or performance goals. However, those threats are considered bullying if you don’t plan to follow through or are legally not allowed to follow through with the threat.

   Rather than make empty threats, be sure to spell out the expectations you have for employees and the consequences in your employee manual. Refer to that manual when you deal with your employees, and make sure your managers use it, too, as you prevent bullying and empty threats.

1. False Promises

   To boost morale or encourage team members to perform at their best, you may say things like “I see a future for you here” or “You’re going places.” These remarks could be considered contracts whether they’re made in writing or verbally and even if you said them but don’t intend to follow through.

   Making these false promises could result in a lawsuit if the employee is fired or does not receive the promotion. Rather than make a false promise, set up a tangible reward system with extra bonus pay, time off or branded products for your employees who achieve specific goals. This system boosts morale, employee retention and productivity without making false promises.

1. Inappropriate Comments

   A simple joke or comment about someone’s race, sexual orientation, disability, age, religion or gender might be funny in the moment. You won’t be laughing, though, when you’re sued.

   Be vigilant about avoiding any kind of conversation that could be considered offensive or insulting to your employees, customers and anyone. If you’re not sure about what’s considered inappropriate, refer to the Equal Employment Opportunity Commission’s website.

Water cooler conversation, private emails and even casual remarks made in passing could be the downfall of your small business. Set an example for everyone in your company by modeling the right conversation. Make sure your managers and supervisors are aware of these three conversational threats, too. You should also do regular trainings for your entire company as you encourage others to avoid careless conversations and protect your small business.

Preparing for tax season can be overwhelming for a small business owner. A good system that organizes receipts makes a big difference and helps you file an accurate tax return and protect yourself in case of an audit. Try these tips this year.

Keep Every Receipt

The Cohen Rule allows taxpayers to provide reasonable estimates for expenses when they can’t produce actual records of their expenses. IRS Publication 463 also states that taxpayers don’t need to save receipts for expenses under $75. However, saving every receipt allows you to prepare an accurate tax return and helps you win an audit.

Take Notes on Your Receipts

To prevent you from mixing business and personal expenses, record the details of each purchase on your receipts. Note what you purchased, and include why you bought the item. This step is especially important for entertainment and meals where you need to prove that you took clients to lunch and talked about business.

Use a Business Journal

Vending machine coffee and certain other business expenses will not have a receipt. Use a business journal to track those random expenses. Take a few minutes at the end of each day to write down all your daily expenditures on your Google or Outlook calendar. Print those pages at the end of your tax year to show all the miscellaneous expenses you purchased throughout the year.

Don’t Depend On Credit Card Statements or Canceled Checks

You do want to save your credit card statements and canceled checks, but they don’t always prove an expense. For example, your statement could show that you spent $400 at Staples, but you need to have solid proof for the IRS that you used that money to purchase office supplies for your business and not invitations for your daughter’s birthday party.

Avoid Using Cash

Cash is easy to spend and difficult to track. Use your debit or credit card instead as you ensure good record keeping. If you do have to use cash, be vigilant about recording details on the receipts or in your business journal.

Scan and Store Receipts for at Least Six Years

The IRS can perform an audit up to six years after you file your taxes. Be prepared when you scan your receipts before they fade and then store them electronically. Be sure to save them to Dropbox, OneDrive or another cloud-based storage option instead of relying on a hard drive that could crash and take your receipts with it.

Your small business may never be audited, but you want to be prepared. Keep good records and organize your receipts this year as you reduce your risk of a high tax bill after an audit.