Advice Pool - Finance

After emerging wounded and bleeding from a recent IRS Field Audit, I picked up some clues as to how budding Internet Entrepreneurs can survive the ordeal with some semblance of financial health.

1. Make your paper trails complete.

You may think that a simple

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

receipt will suffice. Hah! Be prepared to show not only a receipt but a logical trail showing what you purchased, what it does, how it was absolutely necessary in your business, and where the purchase shows up on your bank statements or credit card itemizations

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

. Then provide an explanation of why it didn’t generate the income you thought it would (the reason you bought it in the first place). In addition to the self-reproach and frustration you encountered when the system you bought didn’t perform as promised, you n

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ow have to endure the humiliation of a Revenue Agent shaking their head over your gullibility in ever believing the sales hype Why DID I buy that thing anyway?)

2. Perfect your memory.

If you put $100 cash in your bank account, document exactly where it came

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

from and why, because 3 years from now you will be asked for details as to why this unimportant sum should not be considered unreported income. A few garage sales a year and you have business income my friend, and that means self-employment taxes. Apply this ad

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

vice to every deposit made outside your regular paycheck or retirement income. If you can’t remember what on earth it was, come up with a reasonable explanation and stick with it, through the doubtful head shakings and accusatory stares. Saying “I don’t remembe

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

r” opens up a whole new can of worms.

3. Annotate your check register receipts.

Bought some books to build your business, for classes, for help with income tax? Having the clerk write out what you bought as simply “books” is too generic for an eagle-eyed Reve

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

nue Agent. And a ClickBank or PayPal receipt is meaningless unless you can document what was bought and why it was a business necessity. When you stock up on paper and printer ink at the local office supply store, make sure you pick a register that’s been recen

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

tly filled so you don’t end up with an unreadable tape (and ink fades over 3 years) that will not pass muster, no matter how detailed your explanation. And just why do you buy so much ink? IRS agents don’t have home businesses and have no concept of how fast an

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

inkjet printer gobbles up its supplies when you print out an e-book or two or five.

4. Web finances.

We have all experienced the nightmare of the first year on the Internet – the truckloads of money we cough up to buy e-books, software, and gadgets, plus put

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

up websites that are going to make us a fortune. Did you make a huge profit your first year? Like most of us, you probably spent a lot more than you earned! Think that you can deduct those expenses? Forget it. These are start-up costs and even if some of them

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

pass the scrutiny they receive (What exactly is an Auto-Responder? SEO costs money?), they’ll have to be amortized over 5 years. Who knows if we’ll even be on the net 5 years from now? Who knows if the people and sites we bought from will still exist in 3 years

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

when “more detailed documentation” is demanded?

5. Giving is a two way street.

Next time you slip a $5.00 bill to the homeless guy at the end of the off ramp, make new friends by holding up traffic for 15 minutes while you have him complete a dated receipt i

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ncluding what he is planning on doing with the money. Don’t just put $20 into the Church offering plate, write a check and make sure you get a copy of it after cancellation. Never use those untended drop-off Goodwill boxes -- a list of your donations is meaning

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

less without a signed and dated receipt. And just how much do you think those used clothes and household furnishings are worth anyway? A lot less than they will eventually sell for, that’s for sure. Don’t just sponsor your grandkids in their walkathons or hand

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

over cash for cookies – get an explanation of when you gave, how much, and what the money is being used for. Remember that it’s your word against theirs in a situation where your word is absolutely worthless.

6. Make Map Quest your friend.

If you do a lot of

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

driving for business, charity, self-employment, or to a second job, be prepared to justify every mile through independent verification. Your odometer may differ from an internet estimate but you can’t be trusted so use an outside source, however inaccurate. To

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

be in really good shape, take screen shots of online research (there go the printing costs again) to prove the figures you claim.

Let’s face it. The IRS flips a two-headed coin and we always choose tails. The bottom line is simple: if you show income and pay t

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

axes on it, they will never, ever, question it. If you overpaid because some of that income was excludable, they’ll ignore it. But find yourself in the unhappy position of losing money over the year, as 90% of all would-be home entrepreneurs do, then your life

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

becomes an open book before the eyes of an eager auditor with redlining foremost in mind, trained to ferret out every weakness in your armor.

We can all only hope to eventually make “guru” status and move to the Caribbean to hang on to our new Internet fortune

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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You never get a second chance to make the first impression. In this fast-paced world you have to move ahead of your competitors. It is no longer big fish eat small fish, it is now fast fish eat slow fish! Your clients are always comparing services and you want to be seen using the latest video streaming technology and communicate effectively and not stick with the old methods of ordinary email. Be ahead of your competitors with video email!

Do you use data to make important decisions at your healthcare site or do you go with gut feeling? I will show you the importance of using data to drive decisions, both for diagnosis and for making your site a more efficient work place. Using data driven decision making will improve patient health and improve income for your site.

Trying to win in the stock market without a trading plan is like trying to build a house without blueprints - costly mistakes are inevitable.

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Advice Pool - Tax Pitfalls For An Internet Newbie

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