Home work BEFORE PROFESSIONAL organizer Ruth Wong can help people get their lives in order, she has to delve deeply into their brains. But it's not painful. Wong can usually figure out what she needs to know simply by looking at their desks.
An efficient work area and
phone system help create a balance
between work and home lifePrecise records help realize the
maximum home-office tax breakBy Christine Donnelly
Star-Bulletin"Right-brain people are very visual; they like to have their work out all around them. Trying to work in a really confined space drives them crazy," said Wong, owner of Organization Plus.
Left-brain-dominant people, on the other hand, like an uncluttered desk and have no trouble throwing things away. "As long as it's streamlined, they'll function well," she said.
Understanding a person's personal style is especially crucial when organizing a home office, said Wong, because for most people "it's the only time you can design a workspace that truly fits you."
The U.S. Labor Department does not keep data on the number of people working from home in Hawaii, but researchers say it appears the total here is growing, as it is nationally.
While the variety of home-based workers is wide, including everyone from plumbers to writers, landscapers to telemarketers, most home offices require six essentials, including a desk or workstation, a chair, a filing system, a computer (preferably with e-mail and Internet access), a telephone system and a fax machine.
Most people spend from $2,000 to $4.000 for their initial set-up, then about $1,000 a year for supplies and upgrades, according to the financial services website Bankrate.com.Whether cheap or luxurious, the most efficient workspace is U-shaped, with a main area at your fingertips and other materials (and filing space) within reach on both sides, said Wong.
People who like an uncluttered desk (left brain) should use vertical space, via tall bookcases or wall shelves. Those who like everything out (right brain) may prefer clear, stackable bins that keep paperwork on the desk, but neatly.
If the room is not dedicated solely to the office, it's smart to divide it with tall plants, folding screens or bookcases, both for tax reasons (a deduction applies only to areas devoted exclusively to work) and also to preserve some personal space.
Self-contained "home office" wall units that open up to reveal pull-out desks, shelves, file drawers and computer stands are space savers that also let users "close up shop" at the end of the day, Wong said. "If you can afford it, it's great because one of the drawbacks of having your office in your bedroom is that you're always surrounded by work."
The popular "All-in-One" home office unit at Scan Design on Beretania Street costs $1,598 or $1,989, depending on the size.
Less attractive, not as functional but far cheaper, is a homemade desk consisting of a wooden door balanced on two short filing cabinets, said Wong.
While you may be able to cut corners on furniture, do not scrimp on telephone service, experts advise. A separate business line is essential, as are fax and retrievable voice messaging.
Trying to balance work and personal calls on a residential phone line ends up sounding unprofessional and practically guarantees lost business, said Kathryn Stafford, an Ohio State University associate professor who has researched home-based businesses nationwide, including in Hawaii.
The Internet is a mother lode of free or inexpensive e-mail, phone messaging and business directories, with the websites HotOffice.com and ureach.com among many popular websites.
Stafford said virtually anything that helps clients reach a home-based enterprise is worthwhile, including such simple but often overlooked tasks as getting listed in print and online business directories. "Some of those things have big payoffs compared to their costs," she said.
Also in that category: insurance, which is crucial if you, like piano teachers, are self-employed and see clients at home.
"If someone is on the premises because of a business transaction and gets hurt, that's not covered by your personal homeowners policy. It could cost you your house, or your whole life savings," said Patrick Leahy, vice president of First Insurance, which for $225 a year, adds home-business coverage to clients' homeowners and auto insurance policies.While the idea of starting a home-based enterprise may seem attractive, Stafford said, "don't even think about quitting your regular job" until calculating what it will take to duplicate your earnings. "Most people underestimate."
The financial services website Bizrate.com estimates it costs 30 to 40 percent above regular salary to cover standard benefits such as health insurance, disability insurance, workers compensation and the employer share of Social Security. Not to mention those paid vacations, holidays and sick days. Plus, there will be plenty of time you're "working" but cannot bill clients, such as while marketing your company or doing paperwork.
Stafford said her research shows most people who work from home start out thinking "flexibility equals time, but it doesn't. To get the flexibility they find they have to put in more hours."
Home-based employees of other companies (sometimes called telecommuters) can depend on a regular paycheck, but may face different pitfalls. Some feel isolated and off the career track, others spend their own money and time to get supplies freely available at headquarters. For anyone working at home, whether self-employed or as an employee, there's a constant struggle to balance work and personal time.
Barb Niehaus of Cincinnati has been doing it for 12 years, first as a marketing analyst for another company and since last spring as the publisher of a free online newsletter devoted to helping people find and create legitimate home-based jobs. Anyone fantasizing about big bucks and no boss is a ripe target for "work-at-home" scams that proliferate on the Internet, she said.
"If there is a fee involved, run, don't walk. You should never have to pay to get a real job," said Niehaus, whose website at http://www.moms-home-work.com contains a "scam alert."
Niehaus loves her lifestyle -- no commute and flexible hours -- but said it takes some juggling, especially as the mother of four kids ranging in age from 7 to 13. "They know, when my office door is shut, don't come in unless you're on fire."
Wong, whose company is based in her Aiea home, gives clients a bright red sign to put near their workspace that says: "When I'm at work, I'm not at home."
The opposite is true, as well: "You have to set aside personal time when you don't even think about work, which can be hard because it's always there."
She's found the key to the balancing act in a pleasant, well-organized workspace. "If you know where everything is and can get to it easily, you'll be less stressed out and more productive. You'll be happy at work. It's the best way to live."
WORKING FROM home may bring savings at tax time, but it requires careful records separating business and personal expenses. Precise records help
realize the maximum home-
office tax breakBy Christine Donnelly
Star-BulletinTo qualify for the home-office deduction, most self-employed people must have an area of the home used "regularly and exclusively" for business that is their principal workplace.
Home-based workers employed by someone else must meet the same standards, plus be working at home for the employer's convenience.
Once qualified, possible deductions include direct business expenses, plus a portion of rent, real estate taxes, mortgage interest, utilities, insurance, depreciation and repairs and maintenance. The deductible portion depends on the percentage of the home used for business, and homeowners should remember that if they sell the house, there could be tax consequences based on the deduction taken over the years.
To figure the percentage of space devoted to work, divide the square footage of the workspace by the total square footage of the home. For example: a workspace that is 10 feet by 15 feet (150 square feet) in a home that totals 1,500 square accounts for 10 percent of the whole house.
Self-employed taxpayers use Form 8829 to figure their home-office deduction and report it on Schedule C. Employees should refer to IRS Publication 587, "Business Use of Your Home," and claim allowable expenses as miscellaneous itemized deductions on Schedule A.
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