ASCEND Business Advisory

Are you behind on rent payments or worried about making your next one? Know how different government programs can assist in rental payments for low-income individuals and families. USAGov can guide you to see if you qualify for financial assistance and receive help. https://bit.ly/38WKPkT Source: USAGov

There is help for small business with PPP Loans and ASCEND is here to help you though these turbulent times. https://bit.ly/3sgxSeu

The COVID-19 relief bill, signed into law on December 27, 2020, contains numerous favorable tax breaks for businesses. For example, the new law includes a provision that removes the 50% limit on deducting business meals provided by restaurants and makes those meals 100% deductible. This rule applies to expenses paid or incurred in calendar years 2021 and 2022. The law also authorizes more money towards the Paycheck Protection Program (PPP) and extends it to March 31, 2021. In addition, it provides for the deductibility of PPP expenses paid with the loan proceeds. These are just a couple of the business-related provisions in the new law. Contact us if you have questions about your situation.

One great way to ring in the new year is by implementing a systematic approach to renewing everyone’s focus on profitability. Your business should have a system for gathering profit-generating suggestions, assessing them and, if appropriate, acting. Start by sharing the responsibility for devising profitability ideas with your managers and challenging employees to get involved as well. Whenever you identify a feasible concept, tie it to measurable financial goals and name those accountable for its execution. Implement ideas patiently while monitoring results closely. We can help you identify profit-building opportunities, choose the right metrics and track the pertinent data.

The best choice of entity can affect your business in several ways, including the amount of your tax bill. Although S corporations can provide substantial tax advantages over C corporations in some cases, there are potential tax problems to assess before deciding to convert from C to S status. One issue to consider is last-in, first-out (LIFO) inventory. A C corporation that uses LIFO inventory must pay tax on the benefits it derived by using LIFO if it converts to an S corporation. Other issues to consider are the built-in gains tax, passive income tax and unused net operating losses. Contact us if you’re interested in an entity change. We’ll explain your options and the tax implications.

In the early 1990s, the Balanced Scorecard approach to strategic planning was developed to enable business leaders to better organize and visualize their objectives. It segments a strategic plan into four critical areas: 1) Customers; how can you attract and retain customers that will build the bottom line? 2) Finances; how will leadership and employees drive your financial success? 3) Internal operations; in what business processes must you excel to maximize productivity, 4) Knowledge sharing and learning; how can you provide continuing education and preserve intellectual capital? Contact us for help identifying metrics and incorporating financial analysis into your strategic plan.

These are ways to help recover from natural disasters from weather emergencies to devastating wildfires. Be safe! https://bit.ly/35ry3ZB

This year, most companies’ financial statements will reflect the impact of the COVID-19 pandemic on sales and expenses. Be sure to look at inventory management as well. Carrying too much inventory can reflect poorly on a business as the value of surplus items drops throughout the year. Refine your inventory processes and trim excess items. If yours is a more service-oriented business, apply a similar approach. Check into whether you’re overstocking on services that aren’t contributing to profitability. Be prepared to make tough decisions about customers to whom you provide services that aren’t profitable anymore. Contact us for help.

If your small business is planning for payroll next year, be aware that the Social Security wage base is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. Wages and self-employment income above this threshold aren’t subject to Social Security tax. For 2021, an employer must withhold: 6.2% Social Security tax on the first $142,800 of employee wages, plus 1.45% Medicare tax. In addition, there’s a 0.9% additional Medicare tax on all employee wages in excess of $200,000. Contact us with questions. We can keep you in compliance with payroll laws and regulations.

Check the new articles of interest in this month's newsletter. Check them out: Fraud Alert: Have You Heard About New Vishing Attacks?, Like-Kind Exchanges: New Proposed IRS Regs Define Real Property, Tax-Wise Ways to Get Cash Out of Your C Corp...more. https://bit.ly/3o09ZWb

The sudden impact of the COVID-19 pandemic in March forced every business owner, ready or not, to execute his or her disaster response plan. How did yours do? Now’s a good time to review it while the experience is fresh in your mind. Identify all distinctive threats (including, now, a pandemic) related to your industry, size, location(s), and products or services. Look back at whether and how your business was able to communicate in the initial months of the crisis. Which methods were most and least effective? Is new technology needed? Commit to revisiting your plan at least annually as well as to keeping your staff fully aware of it. Contact us for assistance.

Sales staffs have been under unprecedented pressure this year. The COVID-19 pandemic triggered economic changes that made many buyers cut back on spending. With the economy slowly recovering, here are four steps your salespeople can follow to improve their odds of success: 1) Qualify prospects methodically so sales staffers focus most or all their time on those most likely to buy, 2) Ask the right questions, based on research, to identify a prospect’s specific needs, 3) Proactively identify and address objections during sales calls to eliminate unpleasant surprises at closing, and 4) Above all, present a solution that fixes a problem or helps achieve a goal. Let us know how we can help.

Time To Pivot Your Business During COVID’s New Normal. We're here for you with Business Advisory, Accounting and Taxes services, and you will appreciate the fresh thinking and for today's world. https://bit.ly/3jFgSd4 #Business #Tax #Accounting

IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is selected. But with proper preparation and planning, you should fare well. But it helps to know what might catch the attention of the IRS. For example, some audit red flags are unusually high deductions, major inconsistencies between previous years’ tax returns and the current one, profit margins and expenses markedly different from those of similar businesses. The IRS normally has three years within which to conduct an audit. If the IRS selects you for an audit, we can help you understand the issues, gather the needed documents and respond to the inquiries effectively. Let us know how we can help.

Mobile devices have become the constant companions of today’s employees, a relationship only further cemented by the COVID-19 pandemic. But convenience brings risk. In the current economy, thieves may be trying harder to snatch technological assets. And a stolen or hacked device means hackers could gain possession of sensitive, confidential data about your company, customers and employees. To better protect your mobile tech, consider standardizing product types and operating systems. Also, enforce strict policies that include power-on passwords and regular password changes. Set data storage limits, limit personal use and keep security software updated as well. Contact us for more info.

Check Your Voter Registration and make a plan to vote. It's our duty and responsibility to vote in a democracy. https://bit.ly/3jj7b3E

Do you buy or lease computer software to use in your business? Do you develop software for use in your business, or for sale or lease to others? You should be aware there are complex rules that may apply to determine the tax treatment of the expenses. The rules depend on whether the software is purchased, leased or developed by your business. For example, you must deduct amounts you pay to rent leased software in the tax year they’re paid, if you’re a cash-method taxpayer, or the tax year for which the rentals are accrued, if you’re an accrual-method taxpayer. We can assist you in applying the tax rules for treating computer software costs in the way that is most advantageous for you.

Traveling can be a stress reliever, but it also increases your chances of getting and spreading COVID-19. Check this page to see if you or your travel companions should delay travel to avoid spreading COVID-19. Talk to your healthcare provider before you travel if you are unsure whether any of these situations apply to you or your travel companions. http://bit.ly/whentodelaytravel

The IRS recently announced special per diem rates that can be used to substantiate business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without requiring employees to prove the actual amount spent. For travel within the continental United States, employers can use the optional high-low method for substantiating lodging, meals and incidental expenses, or for substantiating meal and incidental expenses only. The per diem rules can greatly simplify the process of substantiating business travel expenses. Contact us for more info.

The economic impact of the COVID-19 pandemic has hurt many companies but also opened opportunities for others to expand or pivot into more profitable areas. If your business needs working capital to grow, rather than simply survive, consider a mezzanine loan. These work by layering a junior loan on top of a senior (or primary) loan, combining aspects of senior secured debt from a bank and equity-based financing from direct investors. The advantages: a relatively quick approval process and access to working capital that you may be unable to obtain elsewhere. Drawbacks include high interest rates and potential loss of ownership share if delinquency or default occurs. Let us know how we can help.