Worcester Business Journal

www.wbjournal.com March 16, 2015 • Worcester Business Journal 19 I t doesn't pay to underestimate the damage cold weather can do to your business, as some of us have discovered the hard way over the past several weeks. A 2014 report by Munich Re on natural catastrophes found that the greatest losses in North America were caused by an unusually cold winter. In addition to the damage caused to commercial property by adverse weather, businesses must also count the cost of power outages, and the impact of blocked roads and school closures on productivity. How can you protect your business from severe weather? Here are three things you need to do. Assess your risk Examine your current systems and business processes to clarify the consequences of a power outage, work stoppage or significant damage to property or machinery. Prioritize core functions so that the most important equipment is protected or is the first to be repaired. Calculate what a period of inactivity will cost your business. Standard buildings insurance will cover most of the damage resulting from a freeze or snow and ice damage. However, you may not be covered for flooding caused by a backup in sewers or drains, or the inevitable business interruption caused by a wait for repairs to be completed. Check your insurance policy to confirm the extent of your coverage and determine whether you need — and can get — an extension. Shore up your defenses Establish an inspection plan to make sure your business is protected from the cold. Keep sidewalks and entrances to your business free from snow and ice. Pay particular attention to ice forming on tree limbs on the property that could cause dead branches to fall and injure an employee or visitor. Look out for ice dams near gutter downspouts, which lead to water seepage, and keep gutters free so melting snow and ice can flow freely. You should also keep a watchful eye on any buildup of snow or ice on your roofs. Keep the building heated to at least 65 degrees even when the building is closed for the night. Otherwise, pipes are likely to freeze and burst. Invest in a backup generator to ensure continuous power, and install a monitoring system to warn you should the temperature inside the building drop to a dangerous level. Sprinkler systems should also be monitored to ensure early detection of a pipe failure, and a monitored automatic excess flow switch can be placed on the main incoming water line to ensure early detection of a broken pipe or valve. Have a plan of action Create a comprehensive disaster recovery plan that takes in every conceivable risk so you can minimize unnecessary delays should the worst happen. Document key business processes and ensure that sensitive and vital information is stored securely at more than one location. Set clear roles and duties so recovery will not be hampered by the absence of one key individual. With a little preparation and a proactive approach to the risks of severe weather, your business stands the best chance of greeting the spring with a full bill of health. n Scott Lacourse is a director at Enservio, of Needham, which offers software and services for contents claim processing. By Paul Dion Paul Dion, CPA, owns and operates an accounting firm in Millbury. Contact him at info@pauldioncpa.com 10 Things I Know About... 3 ways to survive winter KNOW HOW 10. The growing tax code In 2012, the Internal Revenue Code contained 9,000 pages. The original 1913 document required 27. 9. We're here for you – maybe. From 2004 to 2012, calls received by the IRS from taxpayers increased from 71 million to 108 million. However, calls answered declined from 36 million to 31 million. 8. What?!? McDonald's has received tax breaks to sell Chicken McNuggets overseas. 7. Not for profit? Really? Lady Gaga's foundation claims to connect youth with anti-bullying, mental health and other resources. But she reportedly paid millions to consultants in 2012. (She denied that claim.) 6. A non-taxing job Job search expenses are fully deductible beyond the first 2 percent of your adjusted gross income, as long as you itemize. The deduction is available whether you're employed or not. 5. Day-care deductions beyond preschool Most parents realize there's a tax credit for day care when children are young. But it can be used for before- and after-school care, as well as day camps during school vacations. 4. Got a 'deadbeat friend'? Loaned money to a friend who never paid you back? You may qualify for a non-business bad debt deduction of up to $3,000 a year. 3. Get paid for trips to the doctor. Medical miles (23.5 cents per mile) to and from appointments, plus travel (airline fares and hotel rooms) for out- of-town treatment can be deducted if you itemize deductions. 2. Student loan interest If a parent pays back their child's student loans, the IRS treat that money as if the child paid. As long as the child is not claimed as a dependent, he or she can deduct up to $2,500 in student loan interest paid by the parent. 1. State sales and income taxes Thanks to legislation passed in December, taxpayers filing their 2014 returns can still deduct either state income tax paid or sales tax paid, whichever is greater, if they itemize. n Taxes and deductions T hanks to technology, employees who work remotely are b e c om i n g i n c re a s i n g l y common. An East Coast consulting firm can employ an advisor on the West Coast (who is obviously not coming into the office each day). A media spokesperson for a large biotech firm in Central Massachusetts can actually live and work in Pennsylvania. So how do you manage a worker who isn't … there? Here are three tips to keep communication strong and goals front and center: Establish specifics. It's important to be sure everyone is working from the same playbook, says Christian Lanng in an article at Entrepreneur. com. You may want to work with your HR department to set up a policy for remote workers, including "expectation on how reachable by phone or email a remote employee should be." Establishing expectations in advance is key to avoiding miscommunication or abuse of policy, he writes. Create "face time" opportunities. Chad Brooks, in an article at BusinessNewsDaily.com, cites this advice from Robert Half Technology: Use videoconferencing regularly. It can help the team pick up on each other's nonverbal cues during d i s c u s s i ons , an d e n h an c e communication. Sometimes a remote worker may be within driving distance. In that case, encourage them to attend special events and meetings at your firm. Get personal. Remote workers are not privy to talk around the water cooler. Leaders may need to nurture this workplace culture nuance with remote workers, says Rebecca Knight at HBR.org. Be sure to talk with them about "weekend plans, kids, pets, or last night's big game. Encourage your direct reports to do the same with their remote colleagues" to build empathy, trust and camaraderie, she advises. n 101: MANAGING REMOTELY >> BY SUSAN SHALHOUB Special to the Worcester Business Journal BY SCOTT LACOURSE Special to the Worcester Business Journal Tips for next year on how to keep your business out of the freeze

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