Century Accounting and Tax Services Inc

October is right around the corner. So is the October 15th extension deadline. And so is the fourth quarter for your business.

As we approach Q4, be mindful of the usual year-end accounting needs and reporting requirements that will be popping up. We’ll keep you informed of changes coming, but please do reach out proactively to begin preparing if you haven’t already:

And with the start of a new year coming in just a few months, it can also be a great time to reevaluate some of your company benefit packages that will be rolling over on January 1. Specifically, your “use it or lose it” paid time off (PTO) policy.

Not all companies take this approach, so let’s discuss some alternatives that are out there.

Alternative Approaches To Paid Time Off Policy for Businesses
“A vacation is what you take when you can no longer take what you’ve been taking.” ― Earl Wilson

If your paid time off policy hasn’t changed in decades, it may be time to take note of the latest statistics regarding PTO and the challenges that both employees and employers are navigating.

The Current PTO Landscape

Utilization gap: Only four out of ten workers use all their allotted days of leave each year, leaving 60% struggling to use it all effectively. (Source: Human Resource Management)

Job demands: One in three workers find it hard to take their vacation time due to demanding job responsibilities. (Source: Indeed)

Special situations: Some employees save their PTO for special occasions, lack the funds for a vacation, or simply feel guilty about taking time off.

Interest in other options: Surprisingly, 83% of workers express interest in converting PTO into other financial resources. (Source: MetLife)

These are situations when PTO can become more of a burden than a benefit. So let’s talk about other options you have as an employer.

Offering Unlimited PTO

The concept of unlimited PTO gained popularity around a decade ago, with companies like Netflix offering this perk to their staff. This kind of arrangement can boost productivity and morale, remove the pressure of having to work while sick, and can be used as a great recruiting tool for a population looking for more flexibility and freedom in their work.

But time has shown that it might not be the ideal paid time off policy for everyone. Nearly 30% of Americans with unlimited PTO policies end up working during their vacations. Others avoid taking vacations to meet unspoken work expectations, leading to burnout.

Note: If you decide to adopt an unlimited paid time off policy, consider setting a minimum annual vacation requirement to encourage employees to take time off for genuine relaxation.

Combining Vacation and Sick Time

Many employers are moving towards PTO banks that don’t distinguish between sick leave and vacation time. This approach has seen positive results, including a decrease in unscheduled employee absences and reduced HR tracking efforts.

But it’s not universally popular among employees, especially those with high healthcare needs, who report finding themselves using a significant portion of their time off for medical reasons. And some say it could backfire and incentivize sick employees to come to work so they can save PTO for vacation.

Note: Before implementing a combined PTO policy, be aware of state and local laws that may restrict or regulate its usage, which can vary from state to state.

Converting PTO Into Actual Money

This paid time off policy allows employees to cash out their unused PTO for other benefits. Instead of losing unused PTO or being constrained by calendar timeframes, employees can choose how they want to use their earned time off.

Employees can convert PTO into cash for various financial purposes, such as building an emergency fund, contributing to a Health Savings Account (HSA), or adding to their retirement accounts.

For you as an employer, it could potentially reduce the liability and administrative burden associated with PTO management.

Note: Don’t forget to consider the tax implications and reporting requirements when implementing PTO conversion policies. This includes adjusting payroll taxes and complying with IRS regulations for contributions to HSAs and retirement accounts.

Ultimately, the best PTO policy for your Coastal Southeastern NC organization will depend on your specific needs and goals. But this is one of those small changes that could make a big impact for your organization, both in hiring and employee management. I can help you assess the impact on your bottom line.

Helping you think outside the box,

Karen S. Durda, EA

Happy Earth Day. The day we celebrate this little blue marble we all enjoy living on.

I found this fascinating as I was reading about it this morning — there are so many elements that make up the scenario of a thriving Planet Earth.

Less threats because we’re in the sticks of the Milky Way. The sun is stable and allows us to enjoy a lot of liquid H2O. Earth’s magnetic field helps deflect harmful radiation that would fry us. Our atmosphere traps heat so we don’t freeze to death. Nearby neighbor Jupiter keeps huge asteroids and comets from crashing into us (thanks, Jupe).

Those are some ideal conditions. Change even one of them and life would be much different for you and me.

The thing is, the possibility for cataclysmic events to occur is very real. Unfortunately, there’s not much we could do to prepare for said events (even if sci-fi movies like to make us believe that’s possible).

But there are things we CAN prepare for. Like disasters. We can’t always predict when they’ll happen, but we can plan and build for if they do.

The same goes for your business. Challenges are inevitable. Take Tesla for example.

Tesla’s stock dropped around 40 percent this year, due to investor concerns that demand for the elite EVs also dropping. Now, Tesla is cutting prices, laying off employees, and recalling some of its vehicles.

This is the type of scenario all business owners fear, isn’t it?

And while you hope it never happens, you can be prepared for IF it does. I’m not sure if Musk’s team already had a plan in place for this type of scenario, but YOU definitely can.

Five Reasons to Take Scenario Planning Seriously in Your Small Business
“There is very little that can be done with the past, but anything can be done with the future.” – Marianne Williamson

It’s easy to fall into the pattern of playing whack-a-mole with your business. After all, the events of the last four years have provided a steady stream of problems to fix: unprecedented pandemic restrictions on doing business, frustrating supply chain challenges, rising prices from inflation, a new mentality in the workforce further reducing employee longevity.

And that’s when scenario planning becomes relevant. Have you done this recently in your business?

It might feel too time consuming or impractical, considering the other fires you’re fighting right now. But it’s also important to consider that the US military, Apple, UPS, and Shell Oil have utilized scenario planning to weather some pretty significant storms.

Does scenario planning have to be overcomplicated? You’re preparing for a range of possible futures by exploring different uncertainties, identifying potential challenges and opportunities that could arise as a result, and developing strategies to tackle them.

I know, that takes time. But consider its advantages…

You could boost innovation. A study by a leading academic journal found that companies using scenario planning were 25 percent more likely to introduce significant product or service innovations compared to those without.

You could create more buy-in from employees. A report by Deloitte revealed that businesses that actively use scenario planning have 1.5 times more engaged employees.

You could actually be prepared for a crisis for once. Research suggests that companies with a scenario planning practice in place are twice as likely to report feeling well-prepared for a crisis.

Your business could suffer less. A study by Booz Allen Hamilton found that companies that actively use scenario planning reduced the negative financial impact of unexpected events by 30 percent.

You could finally get beyond the one-year business plan. Studies have shown that businesses that engage in scenario planning demonstrate a 33 percent increase in the focus on long-term strategic goals compared to those without.

Scenario planning might seem complex, but there are plenty of resources out there to help you get started. Including me. What challenges do you see on the horizon for your Coastal Southeastern NC business? Let’s talk about them. I can probably name some that you haven’t thought of yet.

The 2024 federal tax season has reached its end… well, unless you joined the other 19 million taxpayers and filed for an extension.

That’s something we anticipate every year here at Century Accounting and Tax Services, Inc.. And we’ll be working away the next few months on the extensions we filed for our clients… albeit after a little rest from our round-the-clock filing labors. And I’m proud to say my team worked their tails off to serve you this year.

I’m not the only one proud of their tax season work. The IRS is too… and I have to say, the beefed-up efforts in Washington, thanks to increased funding, worked in our favor too. This was one of the most uneventful tax seasons in the last five years.

And as I think on that, I’m also moved with gratitude for the opportunity to serve clients like you. Trusting your business’s financial details and your tax burden in our hands to work on your behalf is something I don’t take for granted.

Trust is in short supply these days.

And that makes me keenly aware of the gravity of you giving us yours. Thank you for choosing Century Accounting and Tax Services, Inc. for your tax and accounting needs.

And just because tax season’s at an end, doesn’t mean we won’t continue to labor on your behalf. One way we’ll keep looking out for you is by delivering these weekly conversations on topics that affect you and your business.

For example, I shared with you recently about some new small business loan requirements that are coming to a local bank near you (pending litigation). The verdict on whether this will make getting a business loan more difficult, in the short-term or long-term, is yet to be seen.

So in the name of keeping you informed about what’s coming, here’s a brief on why these changes are happening and what it means for your Coastal Southeastern NC business…

CFPB Small Business Loan Requirements & Your Biz
“There are known knowns, there are known unknowns, and there are unknown unknowns.” – Donald Rumsfeld

The new small business loan requirements for lenders which have been mandated by the Consumer Financial Protection Bureau (CFPB) are supposed to go into effect later this year (October to be specific). But the controversy and litigation surrounding the new rule has put compliance and enforcement on hold.

Why all the fuss?

Well, let’s start first with what exactly is being asked of lenders.

Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act mandates that lenders begin gathering additional information on small business loan applications, including:

Geographic location
Demographics (business ownership – race, gender)
Loan details (amount, type, terms)
Lending decisions (approved, denied, withdrawn)
Price of credit

Implementation of these small business loan requirements will be phased in for lenders, with larger lenders required to collect and report data earlier (October 2o24) then the smaller lenders (January 2026).

The intention here, purportedly, is to provide a more comprehensive view of small business lending to the public, with the main intent being to make sure lenders are serving small businesses “fairly.”

There is currently very limited data on small business entrepreneurs’ access to credit, and this is the government’s attempt to combat unlawful discrimination in who gets access to those loans (and the better terms available).

Of course combatting discrimination in lending is a good thing, especially if it makes it easier for businesses like yours to get loans. But some argue that these new rules may actually do the reverse, saying it could slow down and make it harder to get small business loan approvals.

Small Business & Entrepreneurship Council president and CEO Karen Kerrigan said it would “bury small businesses and financial institutions with costly and time-consuming paperwork.”

That remains to be seen. So unless the rule survives litigation, nothing will officially be changing – yet – when it comes to meeting small business loan requirements during your application process.

But since there is a larger trend toward greater regulatory scrutiny over commercial lending, the likelihood is that

Our hope is that they can make the data collection process painless for business owners like you and that the long-term result is that financing your business becomes more accessible.

Knowing the government like I (we) do, I have my doubts about that, but time will tell.

Should this pending rule impact your decisions about timing the financing of your next business investment? I’m happy to sit down with you to look at your current financials to help you time things according to the most accurate projections we can make.

I’ve had plenty of clients over the years come to me in a terrible position with their taxes because they trusted the wrong person’s advice or fell prey to a scam… or both.

In fact, the third most commonly reported fraud is tax refund fraud, and every year millions of suspicious tax season activities are reported.

The tough thing is, when money is thin and tax time rolls around, the possibility of owing Uncle Sam can hang heavy over your head. That kind of feeling can make any “get a bigger refund” ad a difficult lure to resist.

But, the IRS is wise to those schemes and (like the Century Accounting and Tax Services, Inc. team) they work hard to make sure you are too. Enter the annual Dirty Dozen list. Right now, the IRS is in the middle of sharing this year’s list — one of the most recent ones is a scam I want to highlight because I’m seeing the effects of it firsthand: Scam #8 — Bad tax advice on social media.

There’s a whole feed of TikTok videos, Instagram Reels, and Facebook posts trying to pull you in with advice about everything from health to skincare to nutrition… and now, tax advice.

Currently, there are two specific tax scams around the misuse of tax forms that are spreading all over social media platforms:

1. Fabricating income to falsely claim large refunds or withhold income

Taxpayers are being encouraged to fraudulently claim a 2020/2021 era tax credit for self-employed individuals when they are an employee (Form 7202 — Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals). Or they are encouraged to invent fictional household employees so they can claim a refund for sick and family medical leave wages (Schedule H — Household Employment Taxes).

2. Misusing the hardship waiver request

There’s a Form 8944 (Hardship Waiver Request) scheme that’s been circulating the social media feeds, encouraging a variety of misuse claims including trying to get a refund even if you owe taxes. While this is a real IRS form, it is for tax professional use only — NOT for taxpayers to avoid tax bills. Tax preparers use this to request a waiver which enables them to file tax returns on paper instead of electronically.

Now, even if the videos you’ve seen aren’t encouraging scammy actions, even the best intentioned tax advice clips can still land you in a whole lot of trouble.

These videos are created to get likes for influencers who are usually not professionals who understand the world of taxes. The reality is that the tax code and the rules around taking credits and deductions are often nuanced. A 15-30 second video (even a 3-minute clip in some cases) just can’t explain all of those details well.

So, when you come across a video giving you tax advice, ALWAYS double-check that information on irs.gov or consult a trustworthy Coastal Southeastern NC professional you trust. As someone who looks out for my clients to help them resolve their IRS problems, I also urge you to vet any tax advice you get from an outside source.

It never hurts to check, but it’ll be another kind of pain if you don’t.

Let social media be your place to unwind. Not your place to get tax help. That’s what I’m here for.

Lots going on this week. Namely…

The tax filing deadline is Monday, April 15th. For any of our Coastal Southeastern NC business clients who haven’t yet reached out to us, we can still take you on by filing an extension on your behalf and then managing the filing after. But, remember, you still have to pay what you owe Tax Day or else you’ll wrack up penalties and fees.

ALSO note this about April 15th…

Estimated taxes for the first quarter are due.

(Oh, and by the way, if you have finished your taxes with us, please let us know what you thought. We really appreciate it. Make us smile with a review on Google )

This week, I want to talk about business debt… because I hate seeing, when I sit down with a business owner, that they got in over their head with financing. Unfortunately, it’s sometimes too late when I do — and the potential solutions end up being moot.

While I have helped execute some semi-miraculous rescues from business debt situations that seemed impossible for clients in the past, sometimes it’s just too late when the opportunity to help comes along.

So, let’s address that subject today in hopes that I can help you in more ways than one.

3 Debt Elimination Steps for Your Small Business
“You may encounter many defeats, but you must not be defeated.” – Maya Angelou

Business debt is prevalent in small business life. Recent data shows that 70 percent of small businesses in the US have outstanding debt.

Debt isn’t bad, but there can be real financial concern in the distribution. Many businesses manage smaller debt loads, but a significant portion carry a heavy burden that can impact their financial health.

Around 38 percent owe under 100K but a concerning 62 percent owe over 100K, which can be a heavy burden for smaller companies.

So… what to do about it?

Business debt at exorbitant interest rates is obviously “the wrong kind” of debt. And getting buried under the wrong kind of debt for your business can kill your company’s long-term success and even threaten its viability.

So, what is the “wrong” kind of debt for businesses to hold?

Put these on the list of debts to avoid:

Business loans with excessively high interest rates, balloon payments, or short repayment terms
Credit card debt (especially for non-essential expenses)
Car dealership auto loans and/or leases
Personal loans with high rates (including “debt aggregation” services)
Loans from friends or family (without clear terms)

Generally speaking, the wrong kind of debt should be thought of as any debt that is either not necessary – or which could be refinanced on more favorable terms.

To remove bad debt from your business, here’s a clear plan:

1) Organize Your Debts: First, get a complete picture. List every outstanding loan and analyze the interest rates and repayment terms.

2) Prioritize Payoff or Refinance: Can you strategically pay off some high-interest debt without hurting your cash flow for future investments? If certain debts are too expensive, explore refinancing with a lower interest rate.

3) Show Your Strength to Lenders: If your business is profitable or has a clear path to profitability, lenders may be open to refinancing at a better rate. Present your financial health and solid business plan to show you’re a good investment.

Look at it this way: refinancing isn’t a favor to you, it’s a smart business move for them. Lenders make money on loans, and a company with a good track record like yours is a secure investment. Show them your strong financials and they might offer a loan with much better terms.

Business debt is a tool to be used wisely. Let’s make your Coastal Southeastern NC company all the more profitable.

Well, the U.S. government has decided it can go on spending money – 1.2 trillion dollars to be exact. That means the departments of State, Defense, Labor, Health and Human Services, and Homeland Security are funded, through next September anyway. So the shutdown standoff has ended, for now.

“Tax season” is also nearing its end.

But the truth is that tax season actually never ends for us. We just get a little less busy.

Thank you so much for your trust, and for allowing us to walk with you during such a sensitive and (occasionally) painstaking process.

Since we work with so many businesses, it’s perhaps obvious that there is far more to what we do than tax returns. There is far more to being an effective tax advocate for our business owner clients than simple “historical reporting” (which is what return preparation is all about).

Many business owner clients use our services to get a lot more proactive with their planning … and thereby save even more throughout the entire year.

Grab some time on my calendar if you’re interested in hearing about what that could look like for YOU.

910-796-0099

To give you a little taste, let’s talk about one area that really affects taxes, but not everyone is thinking about how to approach it rightly: retirement.

There’s a new-ish buzz word floating around workplaces and among aging workers – flextirement. Have you heard of it?

Basically, it’s a new iteration of the phased retirement approach (that’s not new) that allows employees to gradually ease into full retirement, reducing work hours over time while maintaining some benefits.

If it peaks your interest, you’re not alone. So I want to talk about why this retirement plan might be one you should consider for your small business and what it could look like.

A New Retirement Plan for Small Business Owners
“Don’t simply retire from something; have something to retire to.” – Harry Emerson Fosdick

Flextirement — a new approach to retirement where workers gradually phase into retirement — seems to be a trend fueled by, well, other trends.

A recent study showed that 1 in 6 retired Americans are considering returning to work, citing personal reasons, needing more money, getting bored, feeling lonely, and inflation as their top five motivators.

And the number of older employees in the workforce is growing too. The workforce participation rate was 25.8 percent in 2021 for workers aged 65-74, and that number is expected to grow to 30.7 percent by 2031. For 75+ workers, they’re expected to comprise 11.1 percent of the workforce, up almost 3 percent from 2021.

The reality is plain: the number of older employees in your workforce is only growing. And, it’s encouraging to know that many of them actually want to be there, having experienced the other side and recognizing the upsides to a regular work schedule.

Enter flextirement, a retirement plan for small business that could help you serve this segment of your workforce in a way that also benefits your business.

Consider that these folks are already trained, possess valuable industry experience, and can help you manage the knowledge gap among younger employees.

Those are pretty attractive perks for you as a business owner.

Others think so too, with 36 percent of companies now offering phased retirement options as a part of their small business retirement plan, also reporting additional positive stats such as an increase in work satisfaction and reduction in turnover.

But what does this look like practically? Here are a few bullet points to explain flextirement as a viable retirement plan for your small business:

Reducing work hours: These retirement-aged workers can move to a part-time schedule, giving them more free time for hobbies and interests.
Meeting the needs of older workers: A tailored work life is appealing to this group who often needs a continued income stream while making room for other life values as they age.
Maintaining some benefits: Often, health insurance and partial retirement benefits continue while working reduced hours.
Negotiating the arrangement: Work hours, remote options, benefits, etc. can be negotiated between the employee, supervisor, and HR department.
Transferring knowledge: Employers can keep that hard-earned knowledge and expertise in-house while gradually transitioning roles.

Is it time for the retirement plan at your Coastal Southeastern NC small business to pivot? Pass this on to your HR team and your other HR colleagues to explore it further. I think I’ve established that it’s at least worth considering. But I’d love to hear your thoughts — about this idea or any other new business idea you’re considering.

Double-checking is a motto we live by here at Century Accounting and Tax Services, Inc.. It’s just good sense when you’re dealing with complicated tax code and people’s returns. No one situation is quite the same with our clients.

And you can be sure we’re giving your tax filing a couple of different checks before we send it off to the IRS for you. That matters this time of year as we hustle to get returns submitted (or extensions in some cases).

Either way, we’re working hard for you. Unless you haven’t started your filing yet. Then, we’ve got different fish to fry… namely filing an extension so there’s plenty of time to re-examine everything before delivering your tax paperwork to the IRS.

Get a time with me now before it’s too late:

910-796-0099

Now let’s look at some interesting situations that also require some thoughtful double-checking. Let’s start with this stat: 42 percent of Gen Z would leave their current job for a remote opportunity.

That could be a tremendous hiring advantage for you, or vice versa if you haven’t pivoted to remote or hybrid work models yet.

One often-overlooked area for business owners in a remote, geographically scattered workforce: I-9 verification in managing remote workers. Let’s straighten out how to manage I-9 requirements for your remote team and ensure you stay compliant.

Manage Remote Workers Through I-9 Requirements: A How-To for Businesses
“Red tape is usually wrapped around something valuable.” – Evan Esar

Let’s be real, the rise of remote work is both freeing and challenging. You can save costs on office space – but managing remote workers is no joke, like figuring out how to handle those I-9 verifications with employees scattered across the country.

You’re not alone in the confusion. There’s a lot of debate about the best way to handle I-9s for a scattered workforce.

Some folks really want to make verification for those remote workers a whole lot easier and faster – no more scheduling in-person meetings, dealing with paperwork delays, or unnecessarily dragging out the employee onboarding process.

They also argue that manual verification and data entry can lead to mistakes. Streamlined processes using electronic forms and verification tools potentially reduce these errors and subsequent compliance issues.

The primary concern to this more streamlined process is that remote verification opens opportunities for using falsified documents or identity theft. Others are concerned that during these remote checks, people with non-traditional names or documents might be unfairly flagged for extra scrutiny. Still others worry about privacy issues, with more government access to employee data.

The challenge is in creating a faster, easier system to accommodate the rising number of remote employees, while making sure it’s secure and fair for everyone.

Okay, what are the rules right now?

You already know this but just to be clear: All U.S. employers must properly complete Form I-9 for every individual they hire for employment in the US. If you’re managing remote workers and local employees, the rule applies to all of them.

And the temporary pandemic rule of just doing I-9 verifications over the phone expired in July 2023.

Now, you mainly have one option: e-verification. This means using a video call to check out your employee’s documents and filling out the updated I-9 form (there’s a special checkbox for confirming you did it remotely).

Alternatively, the U.S. Citizenship and Immigration services website says, “Certain employers who choose to remotely examine the employee’s documentation under a DHS-authorized alternative procedure rather than via physical examination must indicate they did so by checking the box provided.”

How can I get enrolled in the e-verify system?

If you’re considering I-9 e-verification for onboarding and managing your remote workers, it’s a simple process. Head over to the E-Verify website and follow their instructions.

Their website is reporting that 1,500 new businesses sign up for the online verification system every week.

Does this mean you have to ditch the way you’ve been doing things for years?

No, e-verification is currently voluntary for most businesses, except for federal contractors and businesses in certain states with specific mandates.

But even without mandatory e-verification, there are ways to modernize your I-9 process while addressing some of the concerns. New technologies allow for secure remote document examination and storage, potentially reducing errors and streamlining the verification process, for both you and your employees.

As a business owner managing remote workers, it’s necessary to stay updated on the latest regulations and technologies so you can find the best solution that fits your Coastal Southeastern NC company’s needs, whether it’s I-9s or 1099s. That’s what my team is here to help you do.

Here to help make your business engine hum,

Karen S. Durda, EA

Remember that frantic scramble to file your taxes on April 15th? Procrastination happens, especially with taxes.

But a rushed job often leads to a botched job. Why? Because there’s no time to double check to make sure everything is right. Small mistakes can be a big deal on a tax return.

Then, a letter from the IRS hits your mailbox and, worse, it’s a penalty notice for that error you didn’t have time to double check. Yes, mistakes happen… but generally less often if you give yourself time to check your work.

Tax penalties come in various flavors, but each one has its own bite. Here are the four most common tax penalties (in order of scare-level):

Failure-to-file penalty. This can cost you 5 percent of your unpaid taxes for each month your return is late, capped at 25 percent.
Failure-to-pay penalty. Accruing 0.5 percent monthly on unpaid tax balances, also capped at 25 percent.
Accuracy-related penalties. These sting even more, reaching 20 percent of the underpayment resulting from negligence.
And let’s not forget tax evasion. This carries the harshest consequences and includes hefty fines… even jail time.

So, how can you avoid facing this scenario?

Well, the good news is the IRS isn’t unfeeling to your situation. They understand that sometimes life throws curveballs that mess with your taxes… or you just genuinely make mistakes on your return.

That’s where penalty abatements come in. These are kind of like a shield against potentially unfair financial burdens. An abatement can help you reduce what you owe. It could even mean the IRS forgiving your penalties altogether (though in rare cases).

Maybe you were hospitalized during tax season or experienced a death in the family. These are considered “reasonable causes” for penalty relief.

And reasonable causes for penalty abatement go beyond life-threatening emergencies. Your tax records burned up in a sudden fire? Unexpected job loss? Even relying on a bad Coastal Southeastern NC tax preparer (or bad tax software) can be considered a reasonable cause.

The key here is knowing how to present your case effectively… following the proper steps.

Negotiating with the IRS can be daunting, but if you can build a strong case for penalty abatement by demonstrating “reasonable cause” for your tax issues, you’ll have a fighting chance.

This is an opportunity to make the most of any tough circumstances or bad tax advice, and get to the best possible outcome. You’re not a criminal, so don’t forget to use your clean record to argue your case. If you are normally on top of your tax returns, with no penalties in the last three years, you may already qualify for penalty relief.

Once you’re armed with a little know-how to help you take advantage of penalty abatement, you’ll be able to better assess your situation and build a solid case for the IRS to get relief from painful tax penalties.

Of course, you’re always better off not having to deal with tax issues in the first place, so don’t wait for tax trouble to come around. Proactively get help with your tax situation if you’re unsure about how to do things right. This helps you avoid IRS problems and minimize the risk of penalties.

You don’t have to face the IRS alone. We’re here to help you deal with mistakes and fix them. Grab a time on our calendar if you’re ready to be proactive.

Well, since we’re in full deja vu mode right now with the presidential election bid and this year’s Super Bowl outcome… let’s talk about the Employee Retention Credit… again.

Because this week is the deadline for withdrawing ineligible claims — March 22. That’s FRIDAY.

If you claimed and received the ERC, but were ineligible and need to repay it, you can go to the Voluntary Disclosure Program page and see if you can do that… and how to do it.

Believe me, this is serious. The fines and penalties are much worse if you don’t fix it in this window.

As an advisor in your corner, keeping your business functioning well financially and keeping it out of trouble is a priority for my team and me. Which is why I like to get real about things.

For example: It’s mid-March and January’s zeal for fixing all the broken things in your business has probably faded by now.

Maybe you started the year with a bang, but the grind has set in and it feels more like, well, a grind.

That new spreadsheet you created to track your goals isn’t enough to actually achieve those goals. And you’re still scrambling, just like last year.

That may feel bleak, but it’s real for many of my clients. So let’s do something about it.

What are some real tools business advisors like me can offer to help you keep moving forward in your business? I’ve got five for you today…

Why Retain Business Advisors Year-Round
“If you don’t know where you are going, you’ll end up someplace else.” – Yogi Berra

A once-a-year approach to business planning just doesn’t cut it in today’s business economic climate. You have a budget and an annual plan, you got last year’s taxes filed, and you’re caught up on your books.

What’s next?

A lot, actually, that business advisors can help you with to actually make forward progress.

Business accounting is a year-round process.

Now, it’s not realistic to start all of these in one year, so think through last year’s pain points as you read this list and prioritize what’s most important. These are all services qualified business advisors can help you with.

1. Scenario Planning

“What if my biggest competitor drops prices?”
“What if a key supplier goes out of business?”
“What if our primary revenue driver suddenly starts declining?

By brainstorming how you’d respond, you gain agility – a serious superpower these days. And trust me, a business advisor can help you come up with a lot more questions than these AND help you formulate a way through.

Imagine if you had some of these plans in place in March of 2020.

2. Cash Flow Forecasting

Profit is great, but cash is king. A cash flow forecast is way more than just a fancy budget. It helps you predict when money might be tight or when you have extra to invest. This kind of visibility lets you avoid those heart-stopping moments when a big bill comes due.

3. Real-Time Accounting

Have you implemented this yet? Cloud-based accounting gives you up-to-the-minute info on your income, expenses, you name it. This relies on two business technologies, cloud computing and AI, to rapidly produce such documents such as your income statement, balance sheet, sales reports and so on.

The speed and the access combine to help you make clearer and more far-sighted decisions faster. Instead of reacting to old news, you make decisions based on what’s happening right now.

4. Quarterly Reviews

Don’t wait until December to see how your big plan is going. Schedule quarterly check-ins to compare progress against those goals you set back in January. Did the market shift unexpectedly? Can you adjust a goal that’s not realistic anymore? These small course corrections keep you from sailing wildly off-target.

5. Leveraging Opportunities

In a competitive market, seizing opportunities quickly is key. Regular advising keeps you informed about new opportunities and ways to stay ahead.

By weaving these strategies throughout your year, you shift from a reactive to a proactive approach. And yeah, this takes some extra effort upfront. If figuring out all the how-to sounds daunting, consider bringing in an experienced Coastal Southeastern NC business advisor to guide you:

No business management technique is sacred anymore. And rightly so.

In my world, there’s been a trend in recent years with businesses moving away from traditional, fixed budgets towards more flexible approaches. I think that could be said for most tasks within business management.

The ever-changing market landscape, economic uncertainties, rapidly developing technology, and the global scene are all forcing us to look beyond what our predecessors taught us.

What challenges are you facing right now? I’d be really interested to hear about them:

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