Year-end tax planning is always challenging due to uncertainties. Will your projected profit (or loss) for 2022 wind up as such? What will 2023 bring? Will Congress change tax rules—favorably or unfavorably (and possibly retroactively for 2022)? Will your state and local government make law changes affecting your business? Despite uncertainties, planning now is warranted to minimize your 2022 tax bill and position you favorably for 2023. In Part 1, I discussed ideas for planning with respect to your employees. Here are some ideas for your operations and strategic planning. Operations and strategic planning ideas: Manage your inventory For most […]

It’s never too early to think ahead, so now—the beginning of the fourth quarter of 2022—is a great time to begin year-end planning. The goal of this tax planning is to minimize 2022 taxes by taking advantage of tax breaks applicable to your situation as well as positioning your business for 2023 and the new tax rules that go into effect at the start of the year. As I’ve said before, the sooner you get a jump on things, the more options you’ll have and the less stressed you’ll be. The following is Part 1 of year-end planning ideas you […]

When you have machines that are continually breaking down, do you fix them or get new ones? When your vehicle experiences problems on a regular basis, do you replace it with a newer model? When property is damaged during a fire or natural disaster, will insurance pay to replace or only repair? In today’s recessionary environment, the answer can be challenging. When making a decision to repair or replace, consider the following: How long will the machine be needed? Repairs may be a temporary solution to a long-term need. Yes, it likely costs less to repair than to replace, but […]

Benjamin Franklin said it best: “Waste neither time nor money, but make the best use of both. Without industry and frugality, nothing will do, and with them everything.” What better motto for a small business owner to follow, especially during a recessionary period. This blog is based a previous post from a number of years ago, and presents 10 ways to avoid wasting your time and money. 1. Advertise through social media You can do free or low-cost promotions through Facebook and other social media sites instead of spending considerable dollars on traditional media (print, radio, and TV). Use favorable customer […]

As well as loyal customers, money is the thing that makes all businesses turn over. So, as a business owner, you know that your credit score is important – it’s the number that will help you scale up your operations, and support your success. A good business credit score can help you get approved for loans and lines of credit, get lower interest rates, and even lease office or retail space. It can also relieve you of having to personally guarantee loans made to your business. You may know your personal credit score, which is often used by lenders when […]

We are in the 21st century right now and artificial intelligence is more than simply a trendy term. Small and medium businesses, startups, and enterprises all want a piece of the AI pie, which is “THE!„ technology that everyone in business is asking for. Major corporations have fully embraced the artificial intelligence revolution, and small businesses Can benefit from it too. With a long number of AI usage cases related to business that shows how it is boosting organizations, AI is becoming the technological standard across all business sectors. But before doing that, let’s dispel some common misconceptions about artificial […]

Each year the SBA’s Office of Advocacy releases a Small Business Profile showing information about small businesses in each of the states, U.S. territories, and the nation as a whole. Here are some of the most interesting findings of this year’s release on the national profile of small business. Overview There are 33.2 million small businesses in the U.S., which account for 99.9% of all businesses nationwide. These businesses employ 61.7 million people, making them 464% of all U.S. employers. These statistics come from the U.S. Census Bureau, and it appears to be based on 2019 information. Openings and closings Between […]

September is National Preparedness Month and the theme this year from Ready.gov is prepare for disasters to create a lasting legacy for you and your family. Said another way with respect to your business…prepare so your business lasts. Recent massive fires and flooding acutely demonstrate the need to prepare, and 6 ideas for preparedness were covered in a previous blog. Hopefully, as part of preparedness you have sufficient insurance to cover your losses. But the reality is that many small businesses don’t have enough coverage and will sustain financial losses as a result of a casualty event or disaster. Here’s […]

Customers are looking for a frictionless experience when shopping on your website, which means providing a speedy checkout process with plenty of payment options. This is especially critical for business customers that may be more sophisticated than consumers. The best way to speed the payment process for customers—consumers and businesses—doing repeat business is to register with the ACH network. This allows them to pay for goods and services seamlessly. Getting started with ACH is simple and will help reduce fees and improve your website. What Are ACH Payments ACH (Automated Clearing House) is a digital network designed for processing payments […]

The saying “less is more” is attributed to Lugwig Mies Van Der Rohe, one the founders of modern architecture. He promoted simplicity of design. The concept of simplicity may be a good one in this period of recession. Simplicity in your business can give you more time to do needed activities, reduce stress, and help you weather the economic challenges faced today. Here are some ways you—the small business owner—can use this philosophy in your business now. Make time Making time is a weird expression, since time can’t be created. What can be done is optimizing the time you have […]

Most small business owners use their personal vehicle for business driving. And some small businesses own vehicles used exclusively for company driving. If your current car, truck, or van is aging, is now the right time to buy an electric-powered vehicle (EV) or a plug-in electric-powered vehicle (PHEV)? There are many considerations to factor in—pricing, tax breaks, and concerns about your carbon footprint. The following are some things to think about, and when EV is mentioned, also keep PHEV in mind. What to consider about buying an EV Pricing Currently, it’s hard to go green on a budget. The average […]

If your business is a sole proprietorship, partnership, limited liability company, or S corporation—all pass-through entities—you report your share of business net income or loss on your personal federal tax return. Being a pass-through owner has its rewards…and punishments. Reward for profitability If your business is profitable, you may be able to claim the qualified business income (QBI) deduction. This is up to 20% of your share of net income from the business. This is not a business deduction; it’s a personal one that has the effect of reducing the tax rate on this business income. The Tax Foundation says […]

Big corporations have departments for various aspects of their business, such as departments to handle legal, accounting, IT, and HR. They also have a board of directors to advice and vote on certain corporate activities, such as whether to take loans, buy property, offer fringe benefits, and expand into new locations and new markets. Small businesses don’t have all of these advisers on hand. They have to assemble a team of advisers that they can call upon as needed or work with on a regular basis.  The following are some team members to consider. Your outside team of experts As […]

This year Labor Day in the U.S. falls on September 5th. It is a federal holiday created in 1894 in response to unions’ urgings. This year marks the 20th annual World Day Against Child Labor. Labor Day is also the unofficial end to summer, with children returning to school, summer vacation spots closing up, and people preparing for the rest of the year. My thoughts as we celebrate Labor Day this year: Labor shortages continue It seems that post-pandemic, the U.S. is at or near full (maximum) employment. This is deduced in part by measuring the maximum number of people […]