Over recent years the Network Marketing industry has gone through many changes.
For example, consultants are becoming better business people and, with advances in technology, depend more and more on applications to help them save time and money in managing their business.
Many Network Marketing companies have also come to realize that a consultant who is better equipped and more knowledgeable will be better producers and remain in the business longer.
The following quote was taken from an article 'Tax Reporting Obligations for Direct Sellers' published in the DA 'Dialogue' and written by W. Jack Millar (Millar, Wyslobicky and Kreklewetz), a lawyer who represents many Direct Selling companies.
“To further support the business nature of their activities, Consultants should be encouraged to operate their businesses in a professional, businesslike manner, which generally entails:
- Maintaining separate books and records, including bank accounts;
- Developing business plans, forecasts and strategies, and reviewing and amending such plans on a periodic basis;
- Analyzing each business expense from a cost-benefit perspective to determine its “reasonableness,” and avoid those that are “personal” and unreasonable;
- Eliminating unsuccessful business methods and replacing these methods new ones;
- Maintaining detailed time logs and records to support expenses and quantify any benefits derived from the specific expenses.”
Governments have also realized that many Network Marketing Consultants fail to keep proper records of their business activities and have become prime targets for tax audits. These audits have been increasing every year.
Therefore it is essential that a representative treat their business professionally to be successful. When representatives are successful, your company is successful. Simplazz 1-2-3 can help your representative do just that.