If you're like most business leaders, you spent much of 2009 feeling down and just about out--an often inescapable result of the worst recession since the Great Depression. Odds are you grappled with many new challenges, uncertainties, and "don't want to, but have to" decisions. It was a difficult year--period.

Now, 2010 is here, and in the earliest days of the economic recovery, it's time to take the bull by the horns. Smart leaders will bypass the predictable New Year's resolutions and, instead, start 2010 with 10 essential questions:

 1. What matters most?
The good news is there's no right or wrong answer. Yet, what was most important a year or two ago may not be the driving force in the business today. Press the reset button and, together with your leadership team, clarify priorities and commit to keeping them in focus.

2. What is one "problem" I can turn into an opportunity?
No need for rose-colored glasses--just view a current challenge through a lens of opportunity. Think about past successes in the business and figure out how to apply those skills to the issue at hand. You grow by building on strengths, not "fixing" weaknesses.

3. What do employees need to hear from me?
Be careful about sending the message that you need people to hear. Think from your employees' point of view--if they don't feel understood, they won't listen to you anyway--and resist the urge to tell them how they "should" think or feel. Also, inspiration doesn't come only from motivational speeches to the masses. It should happen more informally, too.

4. What is our customers' greatest pain?
Be relentless about knowing and meeting that need. Skip the complicated surveys. Instead, pick up the phone and ask. Listen and understand first--then get busy offering solutions.

5. What new business relationships will I pursue?
New opportunities come from new relationships. Inside and outside your industry, seek out opportunities where there is potential for mutual benefit--not just "what's in it for me?". Remember, too, that even in these boom days of social media, significant business relationships begin with real dialogue--not a Tweet.

6. How will I be more strategic?
Skip the SWOT exercise. Strategic planning isn't an event--it's a discipline. Get serious about setting direction, always starting with a big-picture view of the possibilities. Resist the urge to discuss and deal with tactics until you're clear on what you want to accomplish. Even then, don't check strategy off your list--put it into daily practice.

7. How can I make swift yet smart decisions?
Now more than ever, you can't afford to overanalyze. Clear the "mind clutter" that plagues even the best leaders--and make way for swift, smart decision-making. Hint: Slow down your thinking on the front end--during the planning process--so you can make faster and better decisions later.

In the face of never-ending increases to health care insurance premiums, small business owners may want to consider these alternative options to minimize costs:

1. Adjust plan options. For example, moving from a PPO to a high-deductible plan, in conjunction with a Health Savings Account program, is becoming more commonplace among small businesses. This option allows employees to set aside tax-deferred income for health care needs.

2. Consider a monthly allowance. With a high-deductible plan, employees have more choices—and more control—about how their benefits are allocated. Some may choose to spend those funds on a vision plan, while others might favor dental coverage.

3. Review administration costs. The cost of administering benefits can be just as expensive as the premiums themselves. Making good use of management technology is a critical best practice.

By putting employees in the driver’s seat when it comes to managing health care, employers will have a more satisfied and productive staff overall—an added benefit to any reduction in cost increases.

Taxes are one of the most important issues facing small and growing businesses. And like a company's profits, its annual tax bill will in part reflect the owner's skills and knowledge. Business owners need to be sure that they are meeting all of their responsibilities to the tax man -- and also seizing every opportunity to reduce their taxes. These tax tips will ensure Uncle Sam is not getting more than he’s due.

1. Writing It Off: Deductions. Businesses can deduct all "ordinary and necessary" business expenses from their revenues to reduce their taxable income. Some deductions are obvious—expenditures in such areas as business travel, equipment, salaries, or rent. But the rules governing write-offs aren't always simple. Don't overlook these potential deductions:

•  Business losses. Business losses can be deducted against a business owner's personal income to reduce taxes. If a business owner's losses exceed personal income for the year, some of the year's business losses can be used to reduce taxable income in future years.§ 
• Trips that combine business and pleasure. If more than half of a business trip is devoted to business, deduct the traveling costs, as well as other business-related expenses.

 2. Employee Taxes. If a business has employees, a variety of taxes will have to be withheld from their salaries. Among them are:

• Withholding. Social Security (FICA), Medicare and federal and state income taxes must be withheld from employees' pay.
• Employer matching. Businesses must match the FICA and Medicare taxes and pay them along with employees. 
• Unemployment tax. Businesses must pay federal and state unemployment taxes.   

 3. Quarterly Estimated. This area trips up many an entrepreneur and is especially vexing for home-based businesses. Failure to keep up with estimated tax bills can create cash flow problems as well as the potential for punishing IRS penalties. Among the issues are:

• Who should pay? A business probably must pay quarterly estimated taxes if the total tax bill in a given year will exceed $500. 
• How much should you pay? By the end of the year, either 90 percent of the tax that is owed or 100 percent of last year's tax must be paid (the figure is 110 percent if a business's income exceeds $150,000). Businesses can subtract their expenses from their income each quarter and apply their income tax rate (and any self-employment tax rate) to the resulting figure (their quarterly profit).

4. Sales Taxes. Most services remain exempt from sales tax, but most products are taxable (typical exceptions are food and drugs). If a business owner sells a product or service that is subject to sales tax, he or she must register with the state's tax department. Then taxable and nontaxable sales must be tracked and included on the company's sales tax return. 

•  Having what is considered a "presence" in a state is the criteria used by the IRS to determine whether or not you are liable for paying state sales tax.
• If you do not have a physical presence in another state, but sell items via the Internet or by catalog in that state, you can be subject to a state’s "use tax," but typically not to their state sales tax. A "presence" in another state does not necessarily mean that you have a retail outlet in that state. If you have an office, warehouse, or employees working for you in that state, the IRS may consider you to have a presence in that state. Make sure you are aware of your sales tax responsibilities in all states in which you are doing business.

5. Keep Tax Documents for at Least Seven Years. Good record keeping saves money. Some things like copies of business tax returns, licenses, incorporation papers, and capital equipment expenses should be preserved indefinitely. Keep any tax-related documents (e.g., expense receipts, client 1099 forms, and vehicle mileage logs) for a minimum of seven years.

6. Charitable Contributions. Unless your business is a C corporation, charitable contributions typically "flow through" the business and are claimed as deductions on the individual tax returns of the shareholders of the company. That's true whether you're running a sole proprietorship, partnership, limited liability corporation, or S corporation.

•  If you want to get the maximum tax benefits, you should know these basic rules:
• Only contributions to charities listed as "qualified organizations" by the IRS are deductible. Consult IRS Publication 78 for a list of qualified organizations or search online at the IRS home page. 
• Contributions of more than $250 require a letter of receipt from the qualified organization. For contributions of less than $250, a canceled check is sufficient.  
• In general, donations of property can be deducted for their fair market value at the time of the contribution. You cannot deduct a contribution that has already been written off as a depreciated asset.  
• You cannot deduct the value of time or services that you volunteer.  
• You cannot deduct the part of a contribution that benefits you. If you receive a gift in exchange for a charitable donation, for example, you can deduct only the amount of the contribution that exceeds the value of the gift.  
• In general, you can deduct contributions only in the year you make them. Pledged contributions cannot be deducted until they are actually paid.

 7. Important Tax Deadlines for Businesses. April 15 isn't the only important tax date for business owners. The following dates are important to keep in mind: 

• Annual returns. Most annual returns are due April 15 for unincorporated companies and S corporations. C corporations must file annual corporate returns within two-and-a-half months after the close of their fiscal year. 
• Estimated taxes. Estimated taxes are due four times a year: April 15, June 15, September 15, and January 15.  
• Sales taxes. Sales taxes are due quarterly or monthly, depending on the rules in your state.  
• Employee taxes. Depending on the size of your payroll, employee taxes are due weekly, monthly or quarterly.

8. Deducting Loans. Most business loans are not considered business income. One notable exception is a situation in which you negotiate with a creditor or lender to reduce your debt. If any debt is forgiven, you will owe taxes on this amount. On the other hand, business loans can offer substantial tax benefits. The principal and interest you pay on your loan are business expenses, and you can deduct them from your taxes as such. In order to take advantage of a tax deduction, you must report the total amount of the loan, and the assets and expenditures financed must be necessary to operating the business.

 9. Tax Audits. The very thought of an IRS audit is enough to make most business owners break into a cold sweat. But not all audits are created alike: There are several different types of tax audits, ranging from simple requests for a particular piece of information to comprehensive reviews that cover every aspect of a business.  

• Correspondence Audit This is a relatively simple procedure in which the IRS asks you to document an item on your return by a specified date. This is usually a routine test for compliance with certain items on your return.  
• Office Audit The IRS may ask you to report to a nearby IRS office and document one or more items on your return. You may be able to send them copies of this proof in advance of the appointment and resolve the issue without actually going to the office.  
• Field Audit This is the audit most people dread. The IRS will ask you to provide documentation of various items on your return and to meet with an IRS agent for a thorough review of your records. Be prepared to answer the auditor’s questions, but don’t volunteer information.  
• Taxpayer Compliance Measurement Program Audit This rather lengthy and detailed audit asks you to document and prove every single item in your return. The IRS and Congress use the data from these audits for research and statistical purposes. These audits are arbitrary, and anyone can face them regardless of how carefully they prepare their tax returns. 
• Criminal-Investigation Audit If you are suspected of tax evasion, the IRS will conduct a criminal-investigation audit. If they prove that you have purposefully not paid your income taxes, you can face substantial fines and even jail time. Obviously, you should retain qualified legal counsel if you face this type of audit.