Learning Small Business Management Is Not Difficult At All! You Just Need These Tips!

What are your main challenges in managing your business? Why is it challenging for you? 

Do you feel equipped with all the skills needed for managing a successful business? 

Being a business owner in a crowded business environment today is not ideal. However, with the development of SaaS software and global internet connectivity, you can bring your business to the next level. 

Most importantly, having the right tool and skills to manage your small business is the best way to begin! 

What is small business management? 

Small business management includes adjusting and harmonizing all facets of a small business. 

The process involves the following major items: 

  • Employee management
  • Supply management 
  • Financial management 
  • Operation directing 

Why is small business management important? 

The main reasons why having a good management system is crucial involve the business’ productivity and performance, growth and revenue. 

1. Increase productivity and performance. 

Business management directly impacts employee productivity and performance. 

According to Stanford Business, research data reveals that management practices account for 20% of variation in productivity among certain firms. The study recommends businesses to improve their local business environment and qualified managerial teams. 

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2. Establish a strong foundation for company growth.

A small business manager is frequently one of the company’s earliest managers (if not the first manager). And if this person does a good job and continues with the company as it grows, they will be a wealth of information for future employees.

This person will learn a lot during their time as a manager, from product development history to corporate dynamics and politics to a holistic vision for the future, and they will be a critical element in the company’s growth goals.

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What are the most essential skills for running a small business?

1. Transparency and clear communication.

The best benefit that transparent and clear communication brings to the organization is the enhancement of collaboration between teams and members. 

Some of the most effective ways to embrace the transparent communication consist of: 

  • Be open about your values. 
  • Provide an open and clear communication channel with apps and tools. 
  • Update members with real-time news. 
  • Explain why you can’t share non-sharable information. 
  • Show vulnerability to build trust. 

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2. Effective management skills.

Being an effective manager means that you are able to supervise employees, maintain a positive work environment and assure that every area of the department or team is operating efficiently and cohesively. 

To do this, you will need to acquire some management skills that are useful tools to boost your best performance. 

  • Communication skills 
  • Time management skills 
  • Problem solving skills 
  • Ability to give and receive feedback 
  • Emotional intelligence 
  • Interpersonal skills 
  • Ability to motivate 

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3. Attention to detail.

Attention to detail is a critical skill for a manager as it helps to reduce the chance of mistakes and enhance the quality of work. 

To tune in on the ability to pay attention to details, increasing the following skills is the way to go: 

  • Active listening skills 
  • Organizational skills
  • Analytical thinking skills
  • Observational skills 

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Best management practices exemplified by 3 small businesses 

1. Provide great customer service – Freshbook. 

Freshbook displays how their customers adore the services by highlighting customer stories on using Freshbook’s useful tools in running their businesses. 

Small business owners prefer using Freshbook as their go-to accounting tool as it provides a well-rounded and intuitive double-entry accounting experience with the tools that are suitable. 

  • Invoice clients.
  • Record and track expenses.
  • Track time.
  • Manage a project.
  • Make client estimates.
  • Record payments.
  • Utilize double-entry accounting.
  • Produce reports.

2. Highlight your strengths – CoSchedule. 

CoSchedule is a popular SaaS content and social media planning and organizational tool which emphasizes their ability to solve customers’ problems. 

CoSchedule is great for more than just content planning, as it supports your business to organize and improve the content with headline analyzers, and stay on top of social media calendars. 

3. Be creative – Slack. 

Slack is famous for being one of the most used communication tools for teams. 

Slack has been looking for a way to improve the customer experience and business by discovering their needs and delivering the solution in a compelling way. 

Slack shows that customers can use it for all-type communications: 

  • Text messaging 
  • Files transferring 
  • Direct and private channels 
  • Group call and video meetings 
  • Reminder and mentioning 
  • Follow up notifications 


About Shoeboxed

Shoeboxed is a receipt management application that turns your receipts and business documents into a digital format in just one click by taking a picture straight from your smartphone or scanning a pdf. It automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. Shoeboxed ensures you will always have your receipts securely stored and ready for tax purposes.

Access your Shoeboxed account from your web browser or smartphone app. Stay audit-ready with Shoeboxed for FREE now!

Definition And How A Standard Deduction Works

Every year, you have to pay an amount of income tax to Uncle Sam. In the process of calculating how much your final tax bill is, you are allowed to lower your taxable income through two main deduction methods: itemized deductions and the standard deduction. 

With the itemized deduction method, you need to add up all your deductible expenses and provide evidence to the IRS upon request. Meanwhile, you can just simply subtract a fixed amount without having to do any extra steps through the standard deduction method. 

In this article, we will look into details of what standard deduction is, how it works, and the newest information about standard deduction in 2022. 

Standard deduction definition 

The standard deduction is a fixed amount decided by the government that reduces the taxable income on which you’re taxed. The standard deduction amount changes every year and generally increases due to inflation.  

How much you can deduct with the standard deduction is based on your filing status, your age, and whether you are disabled or if you’re claimed as a dependent on someone else’s tax return.

How does standard deduction work?

The mechanism of the standard deduction is quite simple—you just need to remember the two following points:

  • Standard deduction offers you a flat amount of deduction based on each individual’s situation. That means you can’t change or increase the number as you please. To determine how much you can deduct with the standard deduction, check our information table in the next section!  
  • Suppose you opt to take the standard deduction. In that case, you can’t itemize on your tax return, which means you can’t subtract deductible expenses incurred throughout the year manually (e.g., home mortgage interest, medical expenses, etc.). Since you can only choose one method, it’s best to calculate your taxes in both ways to find out which one helps you reduce more. 

What is the standard deduction for 2022? 

The information below on standard deduction is applied for the tax returns 2022, filled in 2023. 

Filing Status2022 Standard Deduction
Single$12,950
Married; Filing Separately$12,950
Married; Filing Jointly$25,900
Surviving Spouse$25,900
Head of Household$19,400

You might be eligible for a higher standard deduction than the amounts above if any of the following conditions are met:

  • You or your spouse is 65 years of age or older.
  • You or your spouse is blind (to qualify, you must have a certified letter from an eye doctor stating that you don’t have corrected vision of at least 20/200 or that your field of vision is 20 degrees or less)

Who can’t take the standard deduction?

Generally, anyone can take the standard deductions apart from some special cases:

  • You’re married and filing separately, and your spouse itemizes their deductions.
  • You’re a nonresident or dual-status alien during the year.
  • You file a tax return for less than 12 months. 
  • You are a trust, common trust fund, partnership, or an estate.

We hope this guide has helped you understand better what standard deduction is and how it affects your taxable income! 

Want to know more about finance? 

If you’d like to explore more entrepreneurship stories, get simple explanations of complex financial terms, or learn about the best productivity tools, find more posts like this on the Shoeboxed blog.

Shoeboxed is a receipt management application that turns your receipts and business documents into a digital format in just one click by taking a picture straight from your smartphone or scanning a pdf. It automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. Shoeboxed ensures you will always have your receipts securely stored and ready for tax purposes.

Access your Shoeboxed account from your web browser or smartphone app. Stay audit-ready with Shoeboxed for FREE now!

A Quick Guide To Itemized Deductions 

As we all know, careful tax planning can help you maximize your deductions. When preparing your taxes, itemizing deductions may be one way to significantly lower your tax liability.

Read on to find out if the itemized deduction is the way to go for you, and learn when and how to itemize your deductions to really maximize your tax savings.

What are itemized deductions?

Essentially, itemized deductions are deductible expenses approved by the IRS that can lower taxable income. By choosing itemized deductions, you’re able to pick and choose from a huge range of individual tax deductions out there instead of taking the flat-dollar standard deduction.

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What are the different types of itemized deductions? 

Itemized deductions cover a variety of expenses that are only deductible when you choose to itemize. 

Listed below are seven of the most common itemized tax deductions.

1. Home mortgage interest deduction (HMID)

According to the Tax Cuts and Jobs Act (TCJA), homeowners can deduct the interest paid on up to $750,000 in mortgage debt if they took out a mortgage after December 15, 2017 (before this law was passed, you could deduct up to $1 million.)

2. Charitable contributions

How you can deduct from a charitable contribution depends on the type of asset donated and the charity organization you donate to. Remember, not every recipient charity organization is qualified under the tax law, so make sure to check if you’ve donated to approved tax-exempt charities carefully. 

Here is a useful link to help you do your research: 

3. IRA contributions deduction

Your contributions to a traditional IRA are deductible. However, this isn’t the case for contributions to a Roth IRA. 

Your eligibility for IRA contributions deduction is determined by your filing status, income, Social Security eligibility, and access to a workplace retirement plan. You can contribute up to $6,000 and deduct it from your taxes in 2021 and 2022, and if you’re 50 or older, you can add another $1,000 to that.

4. Medical expense deduction

As of 2021, you can deduct only eligible, unreimbursed medical expenses that exceed 7.5 percent of your adjusted gross income (AGI). For example, if your AGI was $60,000, you wouldn’t be able to deduct any amount lower than $4,500 in eligible medical expenses.

Some common examples of non-deductible medical expenses are those that are covered by your insurance or employer. Aesthetic operations are also generally unapproved by the IRS. Nonprescription medications (excluding insulin) and other purchases for general health, such as toothpaste, health club dues, vitamins, diet food, and nonprescription nicotine products, are normally not deductible. Medical expenses paid in a previous year are likewise not deductible.

For a complete list of tax-deductible and non-deductible medical expenses, check out IRS Publication 502


If you have clicked the link and feel unmotivated by the long texts, don’t worry! The IRS has created a free tool for you to check if your medical expenses are deductible.

5. State and local taxes deduction (SALT)

The state and local tax (SALT) deduction allows taxpayers who itemize their federal tax returns to deduct certain state and local taxes. Property taxes plus state income or sales taxes, but not both, are capped at $10,000 per year under the Tax Cuts and Jobs Act (TCJA). However, it’s only $5,000 total if you are married and filing taxes separately.

6. Rental property tax deductions

Apart from the obvious profit that your rental property may bring, you can also deduct the expenditures of owning, running, and maintaining the property on your tax return. 

For instance, a popular rental property tax deduction is the allowance for depreciation. You can properly deduct that depreciation every year over the total useful life of your rental assets. However, the math is usually complicated, so it’s best if you can seek professional advice. 

Furthermore, only when your rental property fits the following criteria will you be able to depreciate your property:  

  • The property is yours. 
  • You use the property for your business or to generate income. 
  • The property has a determinable useful life
  • You anticipate the property lasting longer than a year. 
  • The property was not put into operation and was later disposed of (or no longer utilized for business) during the same year. 

7. Student loan interest deduction

The maximum interest deduction for student loans is $2,500. If your adjusted gross income is beyond $80,000 — or $165,000 if married filing jointly — you can’t take the deduction. 

Unlike most other deductions, the student loan interest deduction is claimed as an adjustment to income on Form 1040. This means you don’t have to fill out a Schedule A, which is used to itemize deductions, to claim it.

There’s also a free tool provided by the IRS to help you figure out how much student loan interest you’re eligible to deduct. 

How can I claim itemized tax deductions? 

It’s quite simple to claim itemized tax deductions: you just need to fill in your income taxes using Form 1040 and list your itemized deductions on Schedule A

Firstly, file all your expenses on the appropriate lines of Schedule A, figure out the total of your itemized deductions then copy that number to the second page of your Form 1040. You then will be able to know your final taxable income by subtracting the deductions from your income.  

What type of receipts do I need to keep for itemized deductions?

If you opt to itemize your expenses, the IRS requires you to keep supporting documentation to prove that you did spend those expenses for the purpose you claimed on your tax return. This is because if the IRS has any suspicion regarding your tax claim, they would need those records to find out whether your filing was honest or not. 

While the IRS doesn’t specify exactly which receipts you must keep, you should keep every record that can serve as concrete evidence of purchase, from sales slips and invoices to deposit slips and canceled checks.

A smart way to organize your receipts 

Itemized deductions can save you a lot of money from Uncle Sam, and it’s important to do your taxes correctly in the event of an audit. 

If you’re tired of spending hours and hours collecting and categorizing receipts by yourself, we’re here to tell you there’s a super easy alternative to that. It’s Shoeboxed. 

Shoeboxed is a receipt management application that turns your receipts and business documents into a digital format in just one click by taking a picture straight from your smartphone or scanning a pdf. It automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. Shoeboxed ensures you will always have your receipts securely stored and ready for tax purposes.

Access your Shoeboxed account from your web browser or smartphone app. Stay audit-ready with Shoeboxed for FREE now!