“It was one of those March days when the sun shines hot and the wind blows cold: when it is summer in the light, and winter in the shade,” said Charles Dickens. It’s the start of Spring and a time that’s ideal for cleaning things in your business. It’s a subject I write on just about every year because I’m usually in the thick of my own Spring cleaning. Compelling reasons for Spring cleaning You may think that this activity is just another tedious chore. But if you keep in mind the benefits to be derived, you’ll be highly motivated to […]

Are taxes a joke? Certainly not when you have to complete a tax return and pay the taxes. But over the years, there have been many humorous quotations regarding taxes. On April 15, typically “Tax Day” (although the due date for filing individual income tax returns for 2020 has been postponed to May 17, 2021), here are 25 quotations, in no particular order, to amuse you: The hardest thing in the world is to understand the income tax. Albert Einstein Today, it takes more brains and effort to make out the income-tax form than it does to make the income. […]

As part of the CARES Act last year, Congress created a new tax credit to incentivize employers to keep workers on the payroll during the pandemic. The employee retention credit is an offset to certain payroll taxes; it is not an income tax credit (although there is a similar income tax credit explained later). The credit, which began on March 12, 2020, was originally set to expire at the end of 2020. The Consolidated Appropriations Act, 2021, extended it through the first half of 2021 and then the American Rescue Plan extended it through the end of 2021. Because of […]

The first installment of estimated taxes for 2021 is due April 15, 2021. This deadline applies even though the due date for filing 2020 individual income tax returns has been extended. A previous blog addressed some aspects of estimated taxes—when to pay them and what they need to cover. The following are some special issues to consider for estimated taxes in 2021. Who needs to pay If you don’t get a paycheck from which to withhold your federal income taxes (or a spouse with a paycheck and who is willing to increase withholding to cover your share of taxes), you […]

In the past year, business owners have focused on survival mode. They’ve had to adapt to government-imposed restrictions, changes in consumer habits, and supply chain disruptions. Now that the economy is getting back to some sort of normal, it’s time for business owners to review and rethink their business plans. Importance of having a business plan “A goal without a plan is just a wish.” ― author Antoine de Saint-Exupéry While many small businesses open and operate without a business plan, it’s highly advisable to have one. Bplans offers some statistics on how having a plan can lead to greater […]

Privacy issues concern your employees, your customers, and your company information. While the pandemic is waning, many of the business practices adopted in the past year will continue to be used. These include remote work arrangements, teleconferencing, and, by for companies, new research and development. These practices present privacy issues that should be addressed. Consider the following: Employees’ information How much can you know about an employee’s health status? Federal law (HIPAA) provides for confidentiality of health information. The Privacy Rule in HIPAA controls what a health care provider can share with an employer. Other federal laws dictate that employers […]

During 2020, many businesses were in survival mode, focusing attention on how to get by during the lockdowns and other restrictions they faced. This left little time for planning and reviewing policy decisions. As things calm down in 2021, you may now be able to strategize and put new plans into motion. In doing so, be sure to take new business terminology into account. Environmental, Social, and corporate Governance ESG Environmental, Social, and corporate Governance (ESG) reflects the sustainability and societal impact that the business has. ESG is an important factor in a company’s reputation. And reputation translates into customer […]

While revenue is picking up for many businesses in 2021, profits won’t grow unless you have business expenses under control. This means knowing where your money is going and dealing wisely with accounts payable—your bills for vendors, contractors, landlords, and others—in a timely and efficient manner. Budgeting Know where your money is going and project your expenses in the near future so you won’t be caught short of cash. In doing this, regularly review your income statement, (also called a Profit and Loss or P&L statement) to track revenue in from the sale of your goods and services and cash […]

The famous quote from Jerry McGuire …”show me the money”… is something that many small business owners are taking to heart these days. As a result of the pandemic, they need funding to stay in business and to rebuild for a better future. Fortunately, there are many government programs and other resources to help with needed financing. The CARES Act started the ball rolling with new funding opportunities. The American Rescue Plan Act of 2021 (ARPA) provided additional funding for various financing programs. Here’s a brief listing of available money. Some programs are restricted by industry, location, or other criterion. […]

A $1.9 trillion measure —the American Rescue Plan Act (ARPA) —was signed into law on March 11, 2021. The key feature of the new law, also referred to as Stimulus 3.0, is a third Economic Impact Payment (EIP3) to eligible individuals. But there are other financial and tax changes impacting individuals as well as small businesses. Stimulus payments and unemployment assistance EIP3. Are you eligible to receive an EIP3 up to $1,400 ($2,800 for married persons filing jointly)? Do you have dependents, including children 17 and older and even adult dependents, for whom you can receive an additional $1,400? It […]