As a business owner, it’s important that you protect your assets as much as possible — and this often means insurance. It’s important to understand what insurance options are available to you, as well as understand the limitations to your personal insurance. This is especially important if you have a home business.

Do I Need Business Insurance if I Work from Home?

One of the first things you need to do is figure out whether or not your personal insurance policies will cover losses due to business activities, or cover business items. Check your policies. In some cases, your homeowner’s policy won’t cover damage to your home office. Some policies specifically exclude business supplies that you keep in your home.

Additionally, realize that a vehicle that you drive for business purposes might not be covered under your auto policy. You need to contact your insurance agent, or read the policy, so that you understand what, exactly, is covered.

Types of Insurance Business Owners Should Consider

Whether you run a home business, or whether you own a business that operates elsewhere, it’s important to make sure that your assets are protected. Consider your individual needs, and determine whether or not any of the following policies might be necessary in your situation:

• Business Owner’s Policy: This type of insurance policy is a blanket approach to coverage, including property and vehicle insurance, as well as liability and business interruption coverage. This bundled approach can, in some cases, be cheaper than buying several policies.
• General Liability: If you want protection in the event that your business causes damage to other property, or causes bodily injury. Even home-based business owners should consider this type of insurance.
• Worker’s Compensation: If you have W-2 employees, you need to have this type of insurance policy.
• Property Insurance: This insurance will protect your business property, from the building in which your business in housed, to office equipment. You can be protected from losses related to a number of situations.
• Commercial Auto: If your company has its own vehicles, this type of insurance is a must. It can help protect you from losses due to damage to the company vehicles. You can also get non-owned liability coverage if your employees are required to use their own cars for work activities.
• Business Interruption: If something happens that prevents your business from operating, this type of insurance policy can help. You can have your earnings protected, receiving payouts that can help you get back on your feet while you get your business going again.
• Errors and Omissions: Also called professional liability insurance, this type of insurance is aimed at helping protect you from losses due clients claiming that you failed to properly render professional services, or that or advice damaged them. Financial planners, lawyers, insurance agents, consultants, accountants, salon owners and others should all have professional liability insurance.

Consider your business, and the needs you have. You want to make sure that you are protected, and that your business will survive if things become difficult. With the right insurance policies, you can ensure that you are ready for almost anything.

There’s a lot of buzz right now about the release of Suze Orman’s Approved Card. This prepaid debit card has a lower monthly fee than most other prepaid debit cards, but it still charges you for accessing your own money, and charges a host of other fees besides.

One of the things that does make the Approved Card substantially different from other prepaid debit cards, though, is the fact that the information on your spending habits is going to be reported to TransUnion. While this is a great marketing move, and Orman is talking it up as part of her “revolution” to change the way credit is reported, in practical terms this report means nothing. The information sent on to TransUnion is going to be evaluated to see if such data could be useful in the future, but it won’t do anything for your credit score right now.

Prepaid Debit Cards Won’t Improve Your Credit Score

In recent years, with the proliferation of prepaid debit cards and prepaid credit cards, it can be easy to become misled and think that your prepaid debit card is going to help you improve your credit score. However, it’s important to understand the distinction. Your prepaid debit card is not a credit card product. Prepaid debit doesn’t require you to make regular payments. All you are doing is spending your own money.

If you are looking for a way to improve your bad credit score, and you can’t get credit through a bank or an unsecured credit card, you might want to consider a secured credit card. These are actual credit products, and your regular payments will be reported to the credit bureaus and help your credit score.

However, it’s vital that you not become confused when comparing these financial products. Prepaid debit cards and secured credit cards appear similar at first glance. They both operate as you expect plastic forms of payment to act, and they both require that you pay money up front to use the card. And both financial products charge fees.

When you sign up for one of these cards, you need to consider what you need it for, and you need to make sure that you understand the differences between the two cards. If you sign up for a prepaid debit card — no matter what sort of “anonymous data” is going to a credit bureau — it’s not going to help your credit score. It just isn’t. If you are trying to rebuild your credit, a prepaid debit card isn’t going to help. You’re just going to pay fees to access your own money.

Eventually, with good financial behavior, a secured credit card turns into an unsecured card. You can raise your limit, and get a card that will help your credit score even more. If your credit really is that bad, a secured credit card, though loaded with fees, can help you repair your credit and build a better history in a way that a prepaid debit card never could. No matter who’s shilling for it.

The year is almost over. Tax season is just starting. As you gather your documentation, pull up the IRS web site, and prepare to fill out your tax return, take a few minutes to consider your situation and determine whether or not you might have someone else prepare your tax return.

Deciding to Turn Tax Prep Over to the Accountant

A few years ago, I switched from being a sole proprietor to setting up as a LLC. We’ve also, over the years, added investments and retirement accounts to our financial establishment. As a result, our taxes have become increasingly complicated. Back in the day, I did our taxes, filling out the 1040, the Schedule C and all the other Schedules and Forms required of our situation. But once we added the LLC, and I realized I would need to fill out a Form 1065 and a Schedule K-1 to go along with our other income tax forms, my heart sank.

Am I capable of doing it myself? Sure. Do I want to? Certainly not.

As our financial establishment began increasing in complexity, and because tax laws change each year, it became time consuming, even with the help of tax prep software, to put together my tax return. I decided to give the accountant a try. He immediately found three tax deductions and one credit that I had missed — even with the help of tax software.

On top of that, he made everything go much smoother. He was able to prepare my return fairly quickly, while I sat there, and he ran a few different scenarios that we could try with my taxes in order to see what might work best. The accountant does cost about $200 more than the home and business (plus state filing) tax prep software, but he more than makes up for it with the tax savings. And it saves me time and frustration.

What You Need to Bring to Your Accountant

The biggest hassle when figuring your taxes is gathering all the documentation for your tax deductions and credits, as well as for income. However, if you do this throughout the year, it really doesn’t take too long. I keep a separate folder for all my tax-related receipts, and my personal finance software helps keep track of everything else. I keep all of my 1099s, and the forms mailed in from my mortgage lender and my husband’s school, in a folder to take in with me. It’s all ready to go, so it doesn’t take very long to assemble.

Some might say that, since it doesn’t take me long to get together my documentation, I might as well do my taxes on my own, since the hardest part is over. But, for me, that’s not the hard part. I hate taking the time to fill out the forms, and I hate comparing the instructions from the IRS with what I’ve done, as well as double checking the tax software’s work.

Turning it over to a professional just provides me with a little more peace of mind, and it means that it’s one less thing that I have to do. And, in the grand scheme of things, having that one less thing to do can mean a lot more than saving a couple hundred bucks.

What do you think? Do you do your own taxes?

Hopefully, you are preparing for a Merry Christmas! I’m pretty much all done with my Christmas shopping, but there are still a few stock stuffers I need to get. Part of the fun with Christmas is looking in the stocking. There usually isn’t anything fancy in a stocking, but there are usually a few fun things to pull out.

If you are looking for some ideas for stocking stuffers, here are a few things to consider:

1. Candy: A handful of miniature candy bars, hard candies or other candy can be great in a stocking. And don’t forget the candy cane!
2. Fruit: Traditional Christmas fruits include oranges, apples and pears. Add these to the stocking. Who knows: Maybe the recipient will take a break from the candy to enjoy something a little healthier.
3. Collector cards: Each year, I buy two or three packs of sports cards and put them in my husband’s stocking. He’s always loved sports cards, and it’s still fun for him to go through them and see what inside. There are also cards for a number of other collectors, including Dragon Ball Z, Lord of the Rings, and more.
4. Action figures: Sports, movies, TV shows and other action figures can be used as great stocking stuffers.
5. Wallets/money clips: Small money-holders like wallets, coin purses and money clips can be great stocking stuffers. You can also give small clutches (for the ladies) in a stocking as well.
6. Movie tickets/gift cards: Stuff the stocking with movie tickets and/or gift cards. This can be a fun way to give the recipient a night out. Restaurants, stores and theaters are great activities.
7. Christmas ornaments: How about a gift that can be used immediately? An ornament can be a great stocking stuffer, and the recipient can hang it right up on the tree — and think about you every year when putting up the tree.
8. Accessories: Whether you are giving fashion accessories or cell phone accessories, these can be great additions to any stocking. Bracelets, earrings, headbands, scarves, gloves, ties and other accessories can be fun to receive. And, of course, covers and earbuds for iPhones and iPods make great small items for the inside of a stocking.
9. Journal/notebook: Provide a small journal or notebook as a stocking stuffer. Include a nice pen, and the recipient will be ready for anything, no matter where he or she goes.
10. Small trinkets: Small trinkets, if the recipient enjoys having small mementos or items for display, can make good stocking stuffers. A small glass or crystal figure, or a small decorative box, can add a lot to the Christmas spirit.
11. Stuffed animals: Give someone a warm and fuzzy gift. There are a number of small stuffed animals, many of them only four to eight inches tall — perfect for snuggling into a stocking.
12. Candles/scented wax: A nice-smelling candle, or potpourri, or the scented wax used in decorative warmers, can make a great stocking stuffers. You can also give diffusers that work with oil and wood sticks, or incense (or incense burners).

One of the ways that you can improve your career is to use the power of a network. Career networking can provide you with inside information on who’s hiring, and provide you with an “in” when you apply for jobs. The right networking strategy can help you learn about where the jobs are — and how to get them. At the very least, your career network can provide you with people willing to provide you with references and letters of recommendation.

Of course, before you can take advantage of a career network, you need to build one. Here are a few of the people that can be of benefit in your career network:

• Co-workers: Past and present co-workers can be great additions to your career network. Forge good relationships with those you work with, and keep in contact with a few of your co-workers from past jobs. Those you associated with in the past — especially if they have moved on to new companies — can be great resources.
• Bosses: Your boss can put in a good word for you if you apply for other jobs. Past bosses can also make great additions to your career network. As your current boss or former boss moves on to better things, you might be the first one recommended for promotion or as part of a new team.
• Alumni: Keep up with alumni from your university days. Many alumni networks can help you find jobs, and keep you in the loop in your industry. I have actually received work as a result of an alumni connection.
• Business association members: Get active in your local business community, or reach out to wider organizations. Guilds, Women in Business groups, local Chamber of Commerce meetings and other organizational events can be great ways to meet career network contacts.
• Family: Your family members can also make great network members. They hear things, and if you mention that you are looking for a job, it is possible to get an “in” somewhere. Don’t neglect your family connections when it comes to career networking.
• Friends and neighbors: Local friends and neighbors can also make valuable members of your career network. When you are looking for a job, you can let them know what you’re looking for, and they can tell you what’s available, and put in a good word for you with their own connections.
• Online acquaintances: Many of the people I work with are people I have never met in person. By carefully considering which networks you join, including LinkedIn and other professional networks, you can grow your career network.

For many, it’s open enrollment time. Whether you work for “the man” or work for yourself, this is the time of year that insurance companies allow you to evaluate your plan — and change your coverage. If your health insurance company is offering open enrollment right now, it’s a perfect time to consider high deductible health plans.

When you raise your deductible, you reduce your monthly premiums, and have the chance to save quite a bit of money.

Advantages to a High Deductible Plan

One of the biggest advantages to the high deductible plan is that you have lower monthly premiums. With a high deductible, you are expected to pay more out of pocket for your health care. As a result, you pay lower premiums since the health insurance company isn’t expected to pick up as much of the bill. If you are experiencing a monthly cash flow squeeze, a lower premium can really help free up some of your money.

Another advantage is access to a Health Savings Account (HSA). The HSA is a special savings account that allows you to save up money for health care expenses. The money grows in an account and comes with tax advantages. Your contributions to your HSA are tax-deductible, and the money in the account grows tax-free — as long as you use the money for qualified health care expenses.

With a HSA, you have the ability to get more benefit from your own health care dollars. Switching to a high deductible plan can really help you save money, improve your cash flow, and prepare for the future.

Downsides to Paying a Higher Deductible

There are, of course, downsides to paying a higher deductible. Even though you pay less in monthly premiums, you still have to pay more up front for your health care. So, you might pay a higher amount when you see the doctor, or pick up a prescription. Plus, if you have a major health concern, you will have to pay a larger portion of the cost before your health insurance kicks in. If you have a deductible of $5,000, this means that you will have to pay $5,000 for your own costs (except preventative care) before the health insurance kicks in.

If you plan to use a high deductible health care plan, it is vital that you have enough money to cover the deductible. Build up your emergency fund to cover it, or make sure that you put the savings from your monthly premiums into your HSA to ensure that you are ready in the event of an emergency.

Note that families and individuals with regular health care visits or chronic conditions may not be best suited for a high deductible plan. These plans work best for those who are in pretty good health, and who have few health care needs. If you make a lot of visits to the doctor, or have a large number of prescriptions, you might spend more each year because of the deductible.

Bottom Line

In some cases, a high deductible plan can financially benefit you. You can reduce your monthly health insurance costs, as well as receive a tax deduction if you pair your high deductible plan with a Health Savings Account. Run the numbers, though, and make sure that a high deductible plan is really the best course for your situation.

Today is Thanksgiving in the U.S. Hopefully, you are enjoying this day with your family and possibly your friends. If you can take a few minutes out from contemplating Black Friday deals, now is a great time to express your gratitude — or at least reflect with thankfulness — for all that you have.

One of the great things about gratitude is the way that it can actually help your finances. A grateful attitude can contribute to a financial success, and help you learn better money management.

Gratitude = Optimism = Better Money Attitude

Numerous studies indicate that those who practice gratitude in their lives are generally more optimistic. Such optimism can lead to happiness, and it can also lead to a better money attitude.

Your relationship with money can be positively impacted by graciousness. Think about how you view money. Are you optimistic about the future? Optimistic people tend to make their own luck, and improve their situations by being more active in getting what they want. Gratitude can help you feel better about your life, and improve your outlook. When you have a better attitude, you are more likely to make better financial decisions, and take the steps to help you earn additional income.

Gratitude = Contentment = Less Spending

Another result of gratitude is that you are likely to be more content with what you have. Recognizing that you have plenty, and that you are happy with it, can help you avoid falling into the trap of spending just to keep up with the neighbors.

When you are thankful for what you have in terms of material possessions, your family, and your health, you are better able to shift your focus to the happiness that you have in your life. When you are content with your situation, you are less likely to spend money in an effort to impress others.

Gratitude can help you set your spending priorities, and recognize what’s truly important to you. Your level of contentment can prevent you from purchasing things that aren’t as important to you, personally, in an effort to raise your status with others. You will spend less on the fluff, and focus more on using your money to help you reach your personal financial goals.

Gratitude = Giving = Better Money Management

One of the curious effects of gratitude is, often, to bring your focus outside yourself and to others. When you are thankful for what you have, and recognize how lucky or blessed you are, you are more likely to start looking around for ways to help others.

Interestingly, when you make charitable donations, and make it a priority to help others, the effects can be seen on your own money management. When you know that you will be donating money to a good cause, or to your church, or to some other charitable endeavor, it encourages you to better manage your resources. Your budget is less strained because you are planning more effectively, and there is a good chance that financial success will follow.

So, make a goal to be more grateful in the coming year, and you might find that your finances improve.

For the most part, you are probably fairly familiar with many of the tax breaks you should be taking at year end. Many of them are relatively obvious. You probably know that it’s a good idea to evaluate your investment losses to see if they can be used to offset your capital gains and some of your other income. You probably also know that now is the time to ramp up charitable donations, and increase what you contribute to retirement accounts and to your Health Savings Account. These moves can help reduce your tax liability. But these well-known tax deductions aren’t your only chances to reduce what you owe. Here are a few overlooked tax deductions that you should consider:

Job Hunt Expenses

If you are looking for a new job (not your first job) in your career field, you can deduct some of your job hunt expenses. Make sure you know whether or not you qualify, and then keep track of travel expenses, resume services, employment agency fees and other costs related to your job hunt. These are actually tax deductible, and can help you save money on your taxes.

Charity Mileage

Many people know that they can deduct their charitable contributions. You might even know that you can deduct the value of goods donated (make sure you get a receipt for all charitable contributions). However, some people don’t realize they can deduct the mileage traveled for charity work. The rate isn’t as high as the deduction for business-related travel, but a deduction is still a deduction. As always, keep good records, and only count the miles you travel on behalf of the charity.

Fees for Professional Services

Do you pay a fee for an investment or financial adviser? Do you have someone else prepare your business taxes? These are costs that might be tax-deductible. Make sure you find out what is required, but when you take advantage of these types of professional services, you might be able to get a tax deduction, reducing the impact paying these fees has on your wealth.

State Sales Tax

Most people are aware that they can deduct state income tax payments. But what happens if you live in a state that doesn’t collect income tax? The IRS lets you choose between deducting state and local income tax OR deducting state and local sales tax. For those who live in states that don’t tax your income, you can get a break by claiming a deduction for the sales tax.

Credit: Child Care

Unlike the tax deductions above, a credit actually directly reduces your tax bill by the dollar. It’s like a gift card you can apply toward your tax bill! If you pay for child care, you can figure the credit and use it to reduce your tax liability. Many people overlook the child care credit, whether they get help through a plan from their work, or pay out of pocket. Make sure to find out if you qualify for this credit, and take advantage of it if you can.

We make a number of investments every day. From our money to our time, we are almost always investing in something. What are you investing in? And how is it going. These great bloggers from around the web share some insight into investing:

1. Three Places Where To Invest For Your Children: You can use these suggestions from Money Q&A to help you help your children. These investment ideas will give your kids a head start on life.
2. Investing in Volatile Markets: Even when things are crazy on the market, you can invest. Out Of Your Rut offers you a helpful look at how you can invest in volatile markets.
3. What Other Bloggers Think of Valuation-Informed Indexing — Part Two: Do you believe in using valuation-informed indexing in your investment efforts? Financial Highway takes a look at what to expect, and what other bloggers think of the technique.
4. Preparing for the Ultimate Cost of Raising Children: The College Years: Enemy of Debt takes a look at the costs of raising children, and the cost of college. Learn more about paying for college, and the importance of investing in your child’s education.
5. Lending Club Returns Now At 11.03%: Lending Club Return On Investment (ROI) — How Do You Measure It?: If you are investing in Lending Club, how do you measure the ROI? Bible Money Matters has some helpful hints for figuring your return.
6. The Importance of Lont-Term Savings & Creating a Strategic Road Map: Len Penzo takes a look at the importance of preparing for the future. Put together a financial roadmap, and you’ll be well-prepared for investing in your financial future.
7. The Payday Loan Trap: While there is clearly a demand for payday loans, and they can help some people, it’s important to be careful. Free From Broke looks at the possibility of getting caught in the payday loan trap.

There’s plenty of financial advice out there. As a result, it’s important to sift through what you hear in an effort to ensure that you do what’s best for you. Here are some interesting insights on finances, and learning about finances, from around the PF blogosphere:

1. Is a poor return a good reason to change your financial advisor?: Over at Canadian Finance Blog, Jim Yih takes a look at reasons to switch it up with financial advisors. Does a poor return mean the end of the world?
2. One Line of Financial Advice?: What’s your favorite financial advice? THE Canadian Personal Finance Blog lists some great one-liners when it comes to financial advice. I’m with him; The Princess Bride is awesome.
3. Financial Lessons From Football: With football season in full season, it’s time to learn a few things. Christian PF takes a look at the ways that football and finances intersect. Are you ready to learn about life and finances?
4. Sound Advice from Unlikely Sources: “It’s the Great Pumpkin, Charlie Brown!”: If you want to learn some solid lessons on finances, you can watch a great classic from the Peanuts gang. The Credit Karma Blog shows you how enlightening cartoon can be.
5. Reader’s Question: How To Prioritize Which Bills To Pay: Money Q&A helps you determine which bills should be paid first. In you are in a tight spot, this bit of financial advice can help you.
6. First Time Home Buyer’s Guide Contest: Join this contest, as explained on Boomer & Echo, and you could get access to great advice, and you could be in the running for an Amazon gift card. Solid.
7. Just Do It: 9 Guilt-Free Ways to Rip Off Your Credit Card Company: Len Penzo points out that sometimes the advice to avoid credit cards at all costs isn’t very good. After all, there are plenty of ways to get the upper hand.
8. Investing in volatile markets: The markets swings have been tough lately. Wondering what to do in a unstable market? Check out Out Of Your Rut’s latest post.

There’s been a lot of talk about plans for a flat tax. Indeed, two Republican candidates recently unveiled two differently structured plans that each can be considered a flat tax. The reason that flat tax plans are getting so much play these days is because they are put forth as simple replacements for our current, complex tax code, and because they could, perhaps, rectify some of the disparities seen in our current tax code.

But, even though we talk about a flat tax as if it’s some monolith, the truth is that there are many different kinds of flat tax plans out there.

Similarities: Everyone Pays the Same Percentage of Income

The main idea joining all tax proposals structured as flat tax plans is that everyone pays the same percentage of their income. At the most basic level, a flat tax of 10% would mean that you pay 10% of your income. So, if you make $100,000, you pay $10,000 in taxes. If you make $20,000, you pay $2,000 in taxes. It’s supposed to be “fair.” No one gets deductions, and there are no loopholes.

Of course, critics of such an austere plan point out that those who are the poorest are still hurt by the flat tax. It may be “fair,” but it isn’t practical for the poor. After all, if you make $100,000 and pay $10,000 in taxes, you still have $90,000 left over to pay for the necessities of life. Someone making only $20,000 probably needs the $2,000 paid in taxes to pay for things like food — and now he or she can’t because it’s gone now.

Such practical realities lead to a number of differences in flat tax structure, some of which actually keep some of the things we are used to in our current system.

Variations on a Straight Flat Tax

Flat tax proposals come in different variations, meant to address the issues that can arise with a straight up flat tax. Some of these variations include:

• No tax paid by the very poor: Some plans exempt those making less than a certain amount of money from paying taxes at all. So, the tax might apply only to those who make more than $25,000, or $30,000. Some plans might vary the threshold based on family size. So, a single person making $25,000 might have to pay taxes, but a family of four might not have to pay taxes until the income level reaches $55,000.
• Deductions: Many flat tax plans come with deductions and exemptions. You might be able to exempt a certain amount of income (Perry’s flat tax plan allows you to exempt $12,500 of your income). Additionally, you would have deductions for dependents, or there would be a standard deduction. In some cases, popular deductions, such as those for mortgage interest and charity, would remain. However, some flat tax plans would only allow those making less than a certain amount of money to claim deductions.
• Investment income, interest, dividends, etc.: Many flat tax plans only levy taxes on earned income. Other income, such as that from capital gains, interest and dividends, is not taxed under many plans. However, some believe that a low flat rate could be used on this type of income as part of the system.
• Tiered flat tax: There are also proposals that offer a tiered flat tax. This would divide income into levels, and a flat tax levied that way. The lowest tier in most tiered plans doesn’t pay tax at all. Then, the other income levels are bundled into anywhere from two more tiers to more than five tiers. Corporations might have two or three tiers for their taxes as well. A tiered flat tax structure may or may not involve deductions, or a tax on other types of income.

What do you think? Is some sort of flat tax desirable? What structure would you prefer?

It’s a good time to take a step back, and evaluate your money situation. As you know, there are a number of great personal finance bloggers out there, with great advice on how you can get your money management act together. Here are some good posts from around the PF blogosphere about properly managing your money:

1. Getting Back on Your Feet After Debt Problems: Once you pay off your debt, you need to get back on your feet. Out Of Your Rut takes a look at what you can do to improve your money situation after you’ve overcome your debt problems.
2. Managing your Finances through a Budget: Financial Highway takes a look at…the budget. As you work to improve your financial situation, you will need a road map, and a budget can be just the thing to help you along your way.
3. No Restaurants in November 2011: Enemy of Debt is taking on an interesting challenge for November: No eating out. This isn’t something I could do, but making challenges for yourself might help you to get your spending under control.
4. A Simple Spending Strategy That Will Do You Wonders: You can treat yourself! Bible Money Matters points out that, if you can afford it, you should treat yourself. It will help you stay out of the dangerous waters of frugal fatigue and overindulgence.
5. Don’t Let Your Purchases Fall Prey to Your Emotions: Over at Free From Broke, you can read about keeping your emotions in control. While it’s fun to buy, sometimes we need to take a step back. After all, we should be in control of our own money.
6. Want Your Kids to Manage Money Well? Teach Them: We all want our kids to succeed. Canadian Finance Blog points out that this means that we have to set a good example for them if we want them to make better money decisions.
7. Cheaper Mortgage Rate Or Free Banking?: Over at THE Canadian Personal Finance Blog, there is a great look at considering other ways to save, if you can’t get free checking.