Father’s Day is a few days away and this day reminds me of the business lessons I learned from my dad at the dinner table each day while I was growing up. He was a co-owner of a machine shop—a small business—that made parts for such items as telephone equipment, helicopters, and the Minuteman missile. Needless to say, his lessons—spoken and unspoken—had a profound impact on me. (This is a blog I ran 4 years ago but wanted to revisit it with some modifications.) Running a business is 24/7. My dad talked about the routine and the not-so-routine events of […]

With the pandemic waning, the time for government assistance programs ending, and the economy growing, your business may need money now. Additional financing may be useful to expand your activities, hire additional employees and increase compensation and employee benefits, or just to pay for the rising price of inventory or other items you need. Instead of looking for outside capital, you may have the financial ability to help your business by lending it money. Things can get complicated, so be sure you understand what you’re getting into. Formalities of lending money to your business When you loan your business money, […]

Due to the pandemic and the desire of the federal government to keep more money in the hands of businesses and individuals, there were certain tax deferral options available in 2020. But 2021 is the time for reckoning. How to handle payments of deferred amounts depends on what was deferred. Employer’s Social Security taxes The CARES Act allowed employers to defer payment of their share of Social Security taxes (part of FICA) from March 27, 2020, through December 31, 2020. This option to defer the deposit and payment of these taxes was figured before the credits for mandatory paid sick […]

Each year the IRS releases statistics on various types of business entities, and most recently it released the latest statistics on sole proprietorships. These stats are derived from Schedule C of Form 1040 for 2018 returns in contrast to the number of such filers and their revenue with 2017 returns. Sole proprietorships include Sole proprietorships include independent contractors, freelancers, other gig economy workers, or other self-employed individuals who are not required to file any other type of income tax return to report their business income expenses. They also include limited liability companies (LLCs) owned by one individual who does not […]

The NFIB Monthly Small Business Survey shows that optimism has returned. As the economy opens up, businesses face new challenges that didn’t exist during the pandemic. What are these challenges and how can you deal with them? Unfilled jobs According to the NFIB survey, nearly 60% of small businesses have jobs they can’t fill. If you look around your community, you can’t avoid seeing “help wanted” signs in just about every store and restaurant. What to do: As states start to cut off extended unemployment benefits, it’s likely that more people will return to the labor market. Nonetheless, businesses must look […]

Taxes are a cost of doing business. Typically, the focus is on income taxes, but other business taxes deserve equal attention. Here are some issues to consider with respect to these other business taxes. Employment taxes Employers are required to withhold income taxes and the employees’ share of Social Security and Medicare taxes (FICA). They must also pay the employers’ share plus federal unemployment tax (FUTA). All of these taxes must be timely deposited with the U.S. Treasury. (State employment tax rules are not covered here.) Employment taxes may be used to underwrite the cost of certain employee benefits or […]

On May 13, 2021, the CDC updated its mask guidelines, saying that fully-vaccinated people can resume activities they did prior to the pandemic and that they don’t have to wear masks or socially distance unless otherwise required. How does this change impact your business? Masking in your business? State and local governments may set their own rules. Also, local businesses are permitted to set their own guidelines on masking and social distancing. Some major retailers, including Walmart, has gone maskless, while Target is retaining masking for the present. Look around at your local businesses. Have they eliminated masking and social […]

In the past year, much focus has been given to the physical health of employees, customers, and everyone else. This continues to be an ongoing concern. But business owners should make it a practice to do a business checkup so that everything is in order and up to date. You may wish to conduct your check monthly or quarterly. Here are some of the questions you should be answering to keep your business healthy. The list isn’t exclusive, but it should get you thinking… Finances and taxes Have you reviewed your budget? Have you updated your budget for changing factors […]

The annual hurricane season runs from June 1 through November 30. Hurricanes typically hit the Atlantic regions: the East coast and Gulf coast of the U.S. There are also storms in the Pacific. According to AccuWeather, this year promises to have above normal activity during the 2021 hurricane season. If you’re in the Northwest or Central U.S., why should you care; the storms won’t impact you directly? Hurricanes affect you no matter your location for two key reasons: You may not get hurricanes, but you may experience tornados, earthquakes, wildfires, or other natural disasters. You need to be prepared and can […]

Business owners may think of revenue as the only financial concern that matters to them. They’re wrong. Bringing in revenue and keeping the pipeline of potential customers full is important, but there are other things that are just as critical, such as a cash flow, credit rating, and even time management. Attention to these other matters can be the difference between whether you survive and grow or go under. Cash flow According to U.S. Bank study noted in an article by Business.com, 82% of business failures are the result of cash flow problems. Cash flow is the movement of money […]