Now’s the time to review your business expenses
As we approach the end of the year, it’s a good idea to review your business’s expenses for deductibility. At the same time, consider whether you’d benefit from accelerating certain expenses into this year. There’s no master list of deductible business expenses in the Internal Revenue Code (IRC). Some deductions are expressly authorized or excluded, but most are governed by the general rule of IRC Sec. 162, which permits businesses to deduct their “ordinary and necessary” expenses. Also, the TCJA reduces or eliminates many deductions. Contact us to learn more.
How Lean Manufacturing Eliminates Waste in Industrial Environments
The mobile robot proliferation is an extension of lean manufacturing principles. Whether labor savings are from tugger application or with fork attachments, reliable navigation that requires no magnetic tape or RFID tags to guide its way safely through a facility, the growth the automonous environment is unstoppable. The two primary prongs of lean manufacturing eliminate […]
Tax-free fringe benefits help small businesses and their employees
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Those that are tax-free are especially attractive to employees. Examples include many types of insurance (health, disability, long-term care, life) and assistance plans (dependent care, adoption and educational), subject to certain limits. The tax treatment of some benefits, such as moving expense reimbursements and transportation benefits, has changed under the TCJA. Contact us to learn more.
529 plans offer two tax-advantaged education funding options
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. A prepaid tuition plan guarantees tuition regardless of its cost when the child attends the school. A savings plan can fund expenses beyond college tuition on a tax-free basis. The TCJA expands the definition of qualified expenses to generally include elementary and secondary school tuition. However, tax-free distributions used for such tuition are limited to $10,000 per year. Contact us with questions.
4 pillars of a solid sales process
Generally, there are four pillars of a solid sales process. First, your marketing and sales departments need to work together to create an expanding universe of customers and prospects. Second, a sense of urgency is crucial; determine how quickly salespeople are following up on leads. Third, documentation is important and unavoidable. Ensure you’re using the right technology to track leads and sales. And fourth, consistency in approach typically yields success. Look for irregularities in the sales process and eliminate them. Contact us for further info and ideas.
A strong BYOD policy combines convenience with security
Many companies now take a “bring your own device” (BYOD) approach to technology to boost efficiency while reducing IT costs. But BYOD comes with risks. Sensitive company data becomes much less secure when networks are accessible via personal devices that could be stolen, lost or hacked. Meanwhile, employees may worry about loss of privacy and whether you might wipe everything off their devices. A strong BYOD policy must balance these two concerns, ensuring security but also preserving employees’ control over their own devices. We can provide further information.
Charitable IRA rollovers may be especially beneficial in 2018
If you’re age 70 1/2 or older, you can make direct contributions (up to $100,000 annually) from your IRA to a qualified charity without owing any income tax on the distributions. This break may be especially beneficial now because of TCJA changes that affect who can benefit from the itemized deduction for charitable donations. While you might be able to achieve a similar result from taking the RMD, contributing that amount to charity and taking an itemized deduction for the donation, fewer taxpayers benefit from itemizing under the TCJA. Contact us for details.
Could a cost segregation study help you accelerate depreciation deductions?
Businesses that acquire, construct or substantially improve a building should consider a cost segregation study. It combines accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. This may allow you to accelerate depreciation deductions, thus reducing taxes and boosting cash flow. And the potential benefits are now even greater due to enhancements to certain depreciation-related breaks under the TCJA. Contact us for help assessing the potential tax savings.
Businesses aren’t immune to tax identity theft
Tax identity theft may seem like a problem only for individuals. But increasingly businesses are becoming victims. Business tax identity theft occurs when a criminal uses information from a business (such as the Employer Identification Number) to obtain tax benefits or enable individual tax identity theft schemes. Here are some prevention tips: 1) Educate employees on how to spot tax fraud schemes. 2) Use secure methods to send W-2 forms to employees. 3) Implement risk management strategies designed to flag suspicious communications. Contact us to learn more.
Dig out your business plan to prepare for the year ahead
Now’s a good time to dig out and review your business plan. Doing so can help you assess changes to your company’s purpose and goals. You can also take a fresh look at your workforce and product or service offerings. In addition, revising your plan will allow you to analyze the state of your industry and perhaps identify new strategic opportunities. You can update the composition of your management team, too, and look for inefficiencies in your day-to-day operations. Last, you can generate financial projections for the coming year. Contact us for help.
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