Business Credit – Glw Drk http://glwdrk.com/ Tue, 22 Nov 2022 06:44:02 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://glwdrk.com/wp-content/uploads/2021/07/icon-1-150x150.png Business Credit – Glw Drk http://glwdrk.com/ 32 32 Members First Credit Union Headquarters Recognized for Construction Excellence https://glwdrk.com/members-first-credit-union-headquarters-recognized-for-construction-excellence/ Tue, 22 Nov 2022 03:06:20 +0000 https://glwdrk.com/members-first-credit-union-headquarters-recognized-for-construction-excellence/ MANCHESTER, NH – Members First Credit Union’s new headquarters, which opened in the fall of 2021, was recently recognized by Construction Resource magazine. The publication awarded construction manager Sullivan Construction the Design/Build Excellence Award for his work at 7 Salmon St., Manchester. Construction Resource noted the beauty of the building and its role in Manchester […]]]>


MANCHESTER, NH – Members First Credit Union’s new headquarters, which opened in the fall of 2021, was recently recognized by Construction Resource magazine. The publication awarded construction manager Sullivan Construction the Design/Build Excellence Award for his work at 7 Salmon St., Manchester.

Construction Resource noted the beauty of the building and its role in Manchester city centre. Instead of being greeted by vacant land as they enter the city, visitors to Manchester now see a “three-storey red-brick Victorian”. The architecture has been carefully designed to appear at ease with the other surrounding buildings, creating what Construction Resource has described as a “beautiful gateway to Manchester city centre”.

The publication also noted the challenges that were overcome as part of the construction. Most notably, the head office was built at the height of the pandemic. In addition, great care had to be taken to protect the streets of the city and a neighboring district.

Construction of the 18,000 square foot building at 7 Salmon St began in July 2020, months after the pandemic began, and opened in September 2021.


“After 14 months of construction, the new headquarters of Members First Credit Union has transformed two overgrown derelict land in historic North Manchester into a beautiful building that reflects the surrounding architecture and truly represents the north of city,” the article concludes.

“We are thrilled to see our friends and partners at Sullivan Construction being recognized for the incredible work they have done in building our headquarters,” said Karl Betz, Senior Vice President/Chief Financial Officer and Interim CEO of Members. First Credit Union. “It was amazing to watch it take shape and we are grateful to have the privilege of working in such a beautiful space.”


About Members First Credit Union

Since 1949, Members First Credit Union has been a trusted financial resource in Manchester, Bedford and surrounding communities. We get to know our members so we can recommend the right solutions to help them achieve their goals. In other words: we are small enough to make a big difference.

As a full-service financial institution, we provide the products and services our members need, whether it’s for themselves, their family or their business. And because we’re not for profit, the revenue goes back to our members, so they can save and borrow at reasonable rates. Membership is open to anyone living, working, or attending school in New Hampshire.

For more information, call 603-622-8781 or visit www.membersfirstnh.org.


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7 tax credits small business owners need to know https://glwdrk.com/7-tax-credits-small-business-owners-need-to-know/ Sat, 19 Nov 2022 18:00:13 +0000 https://glwdrk.com/7-tax-credits-small-business-owners-need-to-know/ Image source: Getty Images A spoonful of credits lowers the tax bill. Key points Employee-related expenses, such as health care and childcare, may be eligible for tax credits. You can even get tax credits for hiring certain types of employees. Making your business more accessible is one of the easiest tax credits to get. There […]]]>

Image source: Getty Images

A spoonful of credits lowers the tax bill.


Key points

  • Employee-related expenses, such as health care and childcare, may be eligible for tax credits. You can even get tax credits for hiring certain types of employees.
  • Making your business more accessible is one of the easiest tax credits to get.
  • There are also credits for improving your company’s impact on the environment, although these are more complex.

One of the most complicated parts of running a small business is figuring out your taxes. Most business owners worry about making sure they’re paying sufficient taxes. However, you should also spend some time figuring out if you’re paying too in taxes.

There are a ton of ways to reduce the amount of taxes your business pays. Tax deductions, for example, reduce the amount of income you are taxed on. Tax credits, on the other hand, reduce your actual tax bill.

Some of the best small business tax credits aim to recoup some of what you spend to keep your employees happy. But there are also tax credits depending on how your business operates. Here are some of the notable tax credits for small businesses.

Discover: Find the best tax software for your situation here

Save: We’ve researched free tax software and compiled a list of the best here

READ MORE: The best tax software for small businesses

1. Health insurance premium credit

If you have a small business but still offer health insurance to your employees, you may qualify for this credit. It can reimburse your company for up to 50% of the insurance premiums paid by the employer, which is not negligible. That said, the amount of credit your business can claim will depend on a variety of factors, including the number of full-time (or full-time equivalent) employees you have, their average salary, and how much you paid. in premiums.

File: Tax Form 8941

2. Credit for start-up costs of a pension plan

Another benefits-related credit, your business may qualify for a tax credit if you start a pension/retirement plan. The credit applies to the cost of setting up the plan, as well as educating your employees about it. Only companies with 100 or fewer employees will be eligible and you cannot have launched a similar program in the last three years.

File: Tax Form 8881

3. Employer-Provided Child Care Credit

Small businesses that help their employees babysit are eligible for credits to cover the costs. Businesses that build and staff their own employee daycares, as well as those that contract with outside facilities, can deduct 25% of qualifying costs. There is also a 10% credit for qualified resource and referral expenses.

File: Tax Form 8882

4. Paid Family and Sick Leave Credit

This credit is designed to encourage employers to provide paid family and medical leave to their employees. It is equal to 12.5% ​​of the salary paid to employees on eligible family or medical leave throughout the tax year if you paid at least 50% of their salary during the period of leave. Paying more increases your credit, with a maximum credit of 25% of salary paid if you paid 100% of the employee’s salary during their qualifying leave.

File: Tax Form 8994

5. Work Opportunity Credit

Being an equal opportunity employer is not just about being altruistic. Businesses that hire employees from specific underserved populations can qualify for a tax credit of up to $2,400 (40% of the first $6,000 of the employee’s first-year salary). The list of eligible employees includes various profiles, including people formerly imprisoned or convicted of a crime, people receiving SSI (supplementary security income) or family helpers, and the long-term unemployed. There may be additional credits for hiring a qualified veteran.

File: Tax Form 5884

6. Disabled Access Credit

Making your business more accessible isn’t just the right thing to do; it can also earn your small business a tax credit. The credit can cover up to half of your costs with a maximum of $5,000 in credits each year. Eligible expenses include a wide range of accessibility improvements, such as hiring interpreters, purchasing equipment, and modifying your property.

File: Tax Form 8826

7. Plug-in electric vehicle loan

Is your business considering going electric? You may be entitled to a tax credit for any plug-in electric vehicle you put into service. The vehicle must meet specific criteria – such as having a battery of at least 4 kWh – to qualify, and certain brands (Tesla and GM) are excluded. The amount of credit you are entitled to varies by make, model and terms of use.

File: Tax Form 8936

When in doubt, hire someone

The ease or difficulty of qualifying for a given tax credit varies greatly, both on the credit and on your business. If you are unsure whether your business qualifies or how much to claim, consult a tax professional. It’s better to get help upfront than to end up in hot water with the IRS later.

Our picks for the best tax software

Our independent analysts have looked at the benefits and user reviews of the most popular tax services to find the best choices for filing your taxes. Start by checking out our list of the best tax software.

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Small Business Industry Study Finds IT Companies Do Well in Most Financial Metrics https://glwdrk.com/small-business-industry-study-finds-it-companies-do-well-in-most-financial-metrics/ Wed, 16 Nov 2022 21:15:34 +0000 https://glwdrk.com/small-business-industry-study-finds-it-companies-do-well-in-most-financial-metrics/ Information technology companies have flourished since the pandemic. Getty Information technology (IT) companies have outperformed companies in other industries in most performance metrics since the COVID pandemic hit in 2022. Biz2Credit analyzed industry trends in 2021 among 30,000 small businesses , finds that IT companies had the highest average income ($955,793), the best credit (658), […]]]>

Information technology (IT) companies have outperformed companies in other industries in most performance metrics since the COVID pandemic hit in 2022. Biz2Credit analyzed industry trends in 2021 among 30,000 small businesses , finds that IT companies had the highest average income ($955,793), the best credit (658), and received the highest average amount of financing ($131,743) when applying for credit.

The retail industry had the highest percentage (27.7%) of all funding granted to small businesses included in the study, while most startups were in transportation and warehousing ( the shortest duration in the company on average).

Biz2Credit 2022 Top Small Business Report looked at the following metrics: annual revenues, loan approval rates, amounts financed, business owners’ credit scores, and age of the business.

Main conclusions:

  • The sector with highest average funding amount has been Technological Information (IT) ($131,743), followed by wholesale trade ($107,576), agriculture, forestry, fishing and hunting ($94,333), manufacturing ($83,700) and services administrative support, waste management and remediation ($67,801).
  • THIS business owners had the highest average credit score (658), followed by real estate and leasing (648), manufacturing (645), professional, scientific and technical services (633) and wholesale trade (629). Credit ratings have generally seen a decline as the savings rate began to decline after most government-backed stimulus programs ended in mid-2021.
  • The companies of IT sector had the highest average income ($955,793), followed by manufacturing ($947,662), wholesale ($886,834), retail ($808,598), and accommodation and food services ($725,243).
  • The Retail business had the highest percentage (27.7%) of all small business financing, followed by health care and social assistance (10.7%), services except public administration (10.4%), accommodation and catering (10.4%) and construction (7.2%).
  • Transport and storage was the industry with the the youngest companies (3.9 years), followed by public administration (4.6 years), arts, entertainment and recreation (4.8 years), services except public administration (4.8 years) and retail trade ( 5.1 years). The oldest businesses on average were information technology (7.4 years), manufacturing (7.1 years), agriculture, forestry, fishing and hunting (6.8 years), health care and social assistance (6.5 years) and professional, scientific and technical services (6.5 years).

Demand for IT services continues to rise as more companies organize remote work in the aftermath of the pandemic. IT companies recorded the highest average approval rates for funding requests. While these companies have done well overall, their customers are often larger companies that take longer to pay external vendors. Thus, they end up borrowing money to manage their available cash from month to month.

Methodology

Biz2Credit, a leading provider of online financing for small businesses, analyzed the financial performance of more than 30,000 applications submitted through the company’s online financing platform from January 2021 to December 2021. All businesses included in the Biz2Credit study have less than 250 employees and less than $10 million. in annual income.

The report covers small businesses across the country, from start-ups to established businesses. In addition, this year’s report analyzed loan data based on the Small Business Administration database. The objective of the study is to identify the top industries for small businesses over the past year and to measure business performance based on their industry affiliation. To view the full report, Click here.

The report covers industries based on the NAICS classification system, including the following:

  1. Accommodation and catering: Restaurants and bars, caterers, hotels, motels, others.
  2. Agriculture, forestry, fishing and hunting: Farms, ranches, dairies, greenhouses, nurseries, orchards or hatcheries.
  3. Business and professional services: Accounting and tax preparation, bookkeeping, payroll services, as well as legal, marketing and design services.
  4. Health care: General medical services, doctors’ offices, dentists’ offices, visiting nurses’ services, residential care facilities, physiotherapists’ offices, mental health clinics.
  5. Technological Information (IT): Software developers, software consultants, high-tech recruitment firms.
  6. Manufacturing: Companies involved in the manufacture of durable and non-durable goods.
  7. Personal Services: Salons, gymnasiums, dance and yoga studios, laundry and dry cleaning, landscaping, cleaning services and others.
  8. Retail business: Physical stores, e-commerce companies, clothing and fashion, florists, grocery stores, pharmacies, home furnishings and others.
  9. The wholesale trade: Food distributors, wholesale grocers, distributors of various durable goods.
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MBS’ Credit Suisse stake isn’t just another Gulf Bank bailout https://glwdrk.com/mbs-credit-suisse-stake-isnt-just-another-gulf-bank-bailout/ Mon, 14 Nov 2022 09:13:30 +0000 https://glwdrk.com/mbs-credit-suisse-stake-isnt-just-another-gulf-bank-bailout/ Comment this story Comment As Credit Suisse Group AG is revamped, the Saudis have stepped in to help. But the Swiss bank could also end up playing its own rescue role. The troubled lender, plagued by scandals and losses, strikes deals to raise capital from outside investors and returns to its wealth management roots. The […]]]>

Comment

As Credit Suisse Group AG is revamped, the Saudis have stepped in to help. But the Swiss bank could also end up playing its own rescue role.

The troubled lender, plagued by scandals and losses, strikes deals to raise capital from outside investors and returns to its wealth management roots. The Saudi National Bank, or SNB, majority-owned by the kingdom’s Public Investment Fund and its biggest lender, has pledged $1.5 billion to become a new strategic investor and take a 9. 9% in Credit Suisse, subject to approval by existing shareholders.

With Saudi Arabia’s newfound bluster, the SNB’s move isn’t just another bailout by a deep-pocketed Gulf investor. The country’s de facto leader, Crown Prince Mohammed bin Salman, or MBS, is on a modernization streak and has bigger and bolder plans. As he cleans up, tightens his purse strings and tries to make his grand Vision 2030 economic plan a reality, the banking system and the financial plumbing are increasingly crucial.

Although there is a lot of money in the hands of the wealthiest Saudi citizens, the country remains heavily dependent on foreign wealth managers and banks to deploy capital.

The SNB itself was created earlier this year by the merger of the National Commercial Bank and the Samba Financial Group. The combined entity, which oversees almost a third of the country’s banking assets, is a mix of a large retail bank and a commercial lender. Showing financial strength, SNB Chairman Ammar al-Khudairy said the investment in Credit Suisse was a “manifestation of the new Saudi Arabia”.

SNB developing an investment banking operation to raise funds overseas for domestic projects would be extremely helpful in realizing MBS’s vision, which includes the $500 billion high-tech desert metropolis called Neom. (Saudi Arabia is working with Lazard Ltd. as it considers how it will pay Neom, Bloomberg News reported). But where they should focus first is on making better use of local money and giving it more of a reason to stay. This is where a stake in Credit Suisse comes in.

Credit Suisse’s wealth management returns have only hit 15% in the past two years, according to Morgan Stanley, as its long-running scandals and problems managing the bank have largely hurt its operations. But in the years before the Covid pandemic, its International Wealth division was achieving average returns of almost 30%

Credit Suisse’s wealth management know-how and technology could prove extremely valuable to the Saudi bank – and to MBS’s plans. Cost-cutting technology has become much more important in recent years as declining returns on investment and increasing transparency have put pressure on fees. At the same time, even the most complicated customers increasingly want to use their mobile phone or other digital devices for their finances. SNB could definitely use some help to develop this stuff faster.

The heritage business is also driving growth. The Middle East and Africa has a relatively small market with only about a tenth of North America’s assets. But the Middle East could grow nearly 5% a year over the next five years, which is better than all regions except Asia-Pacific and Latin America, according to estimates from the consulting firm Oliver Wyman.

Saudi Arabia also faces growing local competition in finance. The more financially savvy UAE has brought in banks, global asset managers and talent to create a center of expertise. Dubai and Abu Dhabi are building investment bases and showing that they can – potentially – diversify and pivot their economies to be more than just dependent on oil and trade. And that they know how to use their own money well.

Meanwhile, Saudi Arabia, the world’s fastest growing economy this year, hasn’t quite established itself as a savvy financial investor despite the heaps of capital it sits on or invests.

MBS has made great efforts to bring in foreign bankers, investors and lawyers and deepen the country’s financial system. With the move from Credit Suisse, he has more access to a damaged but still sophisticated knowledge base. He also has at his side Michael Klein, the star banker and specialist in the Middle East, who is expected to take the helm of Credit Suisse’s quasi-independent investment bank, CS First Boston.

If the country can make the most of this expertise, Vision 2030 might actually stand a chance.

More from Bloomberg Opinion:

• Credit Suisse’s Gulf suitors must be smarter: Anjani Trivedi

• Credit Suisse buyers stuck with a loss: Paul J. Davies

• Credit Suisse’s journey is more like a quest for the Holy Grail: Paul J. Davies

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. Previously, she was a reporter for the Wall Street Journal.

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

More stories like this are available at bloomberg.com/opinion

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SMB TV: Think Smart for the Holiday Season https://glwdrk.com/smb-tv-think-smart-for-the-holiday-season/ Fri, 11 Nov 2022 09:02:18 +0000 https://glwdrk.com/smb-tv-think-smart-for-the-holiday-season/ Recall the dark summer of 2020, when you would have thought Main Street’s small and medium-sized businesses (SMBs) would be extinct by the end of the year. It was understandably pessimistic, but it didn’t take into account the tenacity that small business owners have repeatedly shown. As part of the SMB-TV series produced in conjunction […]]]>

Recall the dark summer of 2020, when you would have thought Main Street’s small and medium-sized businesses (SMBs) would be extinct by the end of the year. It was understandably pessimistic, but it didn’t take into account the tenacity that small business owners have repeatedly shown.

As part of the SMB-TV series produced in conjunction with PayPal, PYMNTS’ Karen Webster was joined by Mark Madrid, head of the Entrepreneurship Office for the US Small Business Administration (SBA), D’Shawn Russell, owner of Southern Elegance Candle Co., and Ed Hallett, Senior Manager, SMB, PayPal, outlining the new chapters in the small business survival and prosperity manual.

Madrid highlighted the resilience of SMEs, from pandemic-induced revisions to inflationary tornadoes.

“It’s a once-in-a-lifetime event,” he said. “When you factor in the pandemic and now the price spike, what they are doing is pivoting. They become more agile. They talk about “Made in USA” to overcome supply chain vulnerability. And they are thinking of 2023. I have never seen this planning spirit more than today.

Resilience and agility were common themes, as Russell described the ordeal of navigating his small business through one crisis and then another. This took the form of researching customer feedback which led to new value-added products and additional sales.

As a PayPal merchant, Russell said she relied on that relationship to ensure customers could pay the way they wanted, maximizing conversions on a rapidly revamped website during the worst shutdowns when physical traffic from shops was virtually non-existent.

“When we decided to shut down and only do online sales, one of the things we tried to do was make sure our customers could pay any way we could,” Russell said.

“I had to learn to scale very, very quickly,” Russell added. “The past two years have been spent scaling the business and growing it until this year when everything slowed down and we entered a recession.”

Praising the ingenuity of SMEs, Hallett said, “They need it more than ever in these times. D’Shawn is a very good example. The companies that have successfully adapted to changing consumer behavior are the ones that eventually prevail, survive and thrive.

“The big change that D’Shawn mentioned was that more and more consumers, mostly through the strength of the lockdowns, were switching to digital shopping.”

And as they do, the choice of payouts is decisive, he said.

See also: Main Street Health Q3 2022: SMEs fight inflation

Buyer’s voice

While Russell was already omnichannel – “I tell everyone, if I could set up a table and sell a candle, we were there – school bazaars, church functions, I didn’t care – we were selling candles there- low” – she says becoming an online -first business was tough.

“One of the things we did was reach out to our customers and say, ‘What exactly do you need during this unprecedented time? What fragrances would you like? What products would you like? “, She said. “As a result, we have introduced room sprays. We have introduced many new options asking our customers because … they are also in the midst of a pandemic”, adopting new ways to shop and pay.

Madrid noted that SBA Administrator Isabella Casillas Guzman’s edict was “to be more customer first, advance technology and advance fairness.” This ranges from the reassessment of SBA loans to services as business management demands pour into the SBA.

Noting that 90% of all SMEs fail, Russell added, “I encourage all new entrepreneurs to make sure they find a mentor, especially something like the Small Business Administration who can really tell them the truth about running a small business.”

Hallett said the pandemic-accelerated digital shift has made some of that easier for SMBs, saying, “You can use your iPad and a point-of-sale app, many of which are free, to do the math. This data is then fed to a system that should automatically sync with your accounting software” while boosting your business credit rating with payment providers.

He pointed to products like PayPal Working Capital that extend business funding by using transaction history as a key indicator, saying, “Payments should no longer just be a means of accepting payment. It should establish a deeper relationship with your supplier so that it can provide easy access to capital that you can repay through your sales.

See also: PayPal Honey sweetens the pot for buyers and merchants as the holidays approach

Holiday 2022 pre-game planning

Webster shifted the discussion to tactical considerations for the upcoming holiday sales season which began in mid-October this year with Amazon Prime Early Access and other sales events.

Madrid listed SBA resources, including 1,000 Small Business Development Centers (SBDCs), more than 150 women’s business centers, the SCORE program with more than 10,000 volunteer mentors, and its 250 SBA chapters of a coast to coast.

“We have to realize and internalize that small businesses don’t take vacations,” he said. “So the practical tools are centered around planning, which is what D’Shawn was talking about. They focus on planning not just one quarter, but two quarters, three quarters, four quarters.

A proponent of SBA programs that encourage peer-to-peer collaboration and community among SMBs, Russell said, “During this time, we have focused on price and value because we realize that today our customers are very price conscious. It also continues to streamline operations.

SMBs today “have a very specific group of people that you serve,” Russell continued. “It’s a lot easier now as a candle company that sells to people who love living in the South to talk directly to those people and ask them, ‘What do you need from us? How can we support you?’

“Every time you do that, it gives you insights and insights that you wouldn’t normally acquire.”

An example of this is his Value Added view, which also applies to PayPal, where Hallett said PayPal Honey has saved consumers over $100 million so far in 2022.

“When you’ve done everything necessary to get a customer to that point of purchase, you’ve done 95% of the work, and you’ve probably spent quite a bit of money and time to get them to that point, make sure you to give the customer the flexibility of payment options…to complete the transaction.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/news/b2b-payments/2022/smbs-turn-to-cross-border-payments-tech-to-tame-fx-uncertainty/partial/

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Australia’s NAB signals slowing loan growth as rates rise, stocks fall https://glwdrk.com/australias-nab-signals-slowing-loan-growth-as-rates-rise-stocks-fall/ Wed, 09 Nov 2022 00:06:00 +0000 https://glwdrk.com/australias-nab-signals-slowing-loan-growth-as-rates-rise-stocks-fall/ Cash profit for the year A$7.10 billion, up 8.3% Total annual dividend of AU$1.51/share Rise of the house, business loans increase income Shares down 2.7% Nov 9 (Reuters) – National Australia Bank (NAB) (NAB.AX) warned on Wednesday that rising interest rates could impact demand for credit in the current financial year, a further decline real […]]]>
  • Cash profit for the year A$7.10 billion, up 8.3%
  • Total annual dividend of AU$1.51/share
  • Rise of the house, business loans increase income
  • Shares down 2.7%

Nov 9 (Reuters) – National Australia Bank (NAB) (NAB.AX) warned on Wednesday that rising interest rates could impact demand for credit in the current financial year, a further decline real estate prices threatening its financial situation.

The country’s second-largest lender also warned that the economic uncertainty created by rising interest rates due to soaring inflation could challenge some customers, but said it expects conditions to be met. strong jobs and substantial savings for homes and businesses, which will help it withstand the impact.

NAB forecasts sharp decline in corporate and housing loan volumes in FY2023 in Australia, with corporate credit growth expected to slow to 3.6% from 14.7% in FY2022 .

He also joined smaller rivals Westpac Banking Corp (WBC.AX) and Australia and New Zealand Banking Group (ANZ.AX) in warning of rising wage costs due to high inflation in fiscal 2023.

Shares of the Melbourne-based bank fell 2.7% to their lowest level since October 18.

NAB, the nation’s largest business lender, saw strong growth in its business and home loans in the year ended September as windfall profits from rising interest rates boosted revenue. cash at 7.10 billion Australian dollars ($4.62 billion).

That compares with A$6.56 billion reported a year earlier and analysts’ estimate of A$7.08 billion, according to Refinitiv Eikon.

“This result reflects the continued execution of our strategy, including targeted volume growth and a disciplined approach to cost management while investing for growth,” said Chief Executive Ross McEwan.

The bank’s troubled loans, whose interest payments were delayed for more than 90 days, fell to 0.66% in fiscal 2022 – the lowest level since fiscal 2015 – against 0.94% in 2021.

Net interest margin, a key indicator of profitability, increased 1 basis point to 1.65% on an adjusted basis. It declared a final dividend of 78 Australian cents per share, bringing the total dividend to 151 cents each, a jump of 19% from a year ago.

($1 = 1.5380 Australian dollars)

Reporting by Sameer Manekar and Harish Sridharan in Bengaluru; Editing by Shailesh Kuber and Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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4 Tax Steps Small Business Owners Should Take Before 2023 https://glwdrk.com/4-tax-steps-small-business-owners-should-take-before-2023/ Sat, 05 Nov 2022 13:32:31 +0000 https://glwdrk.com/4-tax-steps-small-business-owners-should-take-before-2023/ Image source: Getty Images Making these tax changes before 2023 could save you a lot of money. Key points Small business owners should maximize their retirement savings and review their business structure before tax time. Keep track of all your expenses so you can deduct them at tax time. Accelerate or defer income to pay […]]]>

Image source: Getty Images

Making these tax changes before 2023 could save you a lot of money.


Key points

  • Small business owners should maximize their retirement savings and review their business structure before tax time.
  • Keep track of all your expenses so you can deduct them at tax time.
  • Accelerate or defer income to pay taxes when you’re in a lower tax bracket.

As a small business owner, it’s important to keep up to date with the latest tax strategies to minimize your tax liability. One way to do this is through tax planning. Tax planning is the process of identifying tax strategies to minimize your tax liability. With the New Year fast approaching, now is a good time to review some of the key tax steps you should take ahead of 2023.

RELATED: Best tax software

1. Maximize your retirement savings

Not only will your future self thank you for saving for your golden years, but you can also save on taxes along the way. There are several retirement savings plans available for small businesses, including SEP IRAs (Simplified Employee Pension), a SIMPLE IRA (Savings Incentive Match PLan for Employees), and Solo 401(k)s. These plans offer significant tax advantages, including the ability to deduct contributions from your taxable income and defer tax on investment income until withdrawal.

The 2022 contribution limit to a 401(k) is $20,500. For a SEP IRA, contributions are limited to 25% of your net income from self-employment (not including contributions for yourself), up to $61,000 for 2022. For a SINGLE IRA, employees are allowed to make payroll contributions up to $14,000, not including employer contributions. You can also contribute to a Traditional IRA. The contribution limit is $6,000 ($7,000 if you are 50 or older).

2. Review your business structure

Are you still using the same business structure you started with? If so, it might be time to re-evaluate if this is still the best option for your business. For example, if you have grown significantly since starting your business, you might want to consider converting to a C corporation.

Prior to the Tax Cuts and Jobs Act of 2017 (TCJA), the top corporate tax rate was 35%. But the TCJA lowered it to 21%. This rate is significantly lower than the maximum tax rate of 37% for an individual. For LLC members in the top tax bracket, a change in tax status can result in significant tax savings. It is important to speak to a tax professional to help you determine the pros and cons based on your situation.

3. Maximize your deductions

Be sure to take advantage of any deductions available to you. One of the first things to do when planning tax is to review your expenses and deductions. This will help you determine which expenses are deductible and how much you can deduct. Remember that you can only deduct the portion of an expense related to your business.

For example, if you use your car for business and personal purposes, you can only deduct the portion of the expenses that relates to your business use. If you have a home office, you can deduct part of your rent or mortgage interest. Accounting software can help you track your deductible expenses. Here are some common deductions small business owners can take:

  • Health insurance premiums: You may be able to deduct the money you spend on health insurance premiums for yourself, your spouse, and even your dependents.
  • Marketing: Any money you spend on digital or traditional marketing, your website, conferences you attend, business cards you create, and other expenses that make people aware of your business can be deductible.
  • Business insurance: Any liability insurance, workers’ compensation, errors and omissions, etc., may be deductible.
  • Professional services: Hiring a professional to help you with marketing, a business lawyer, an accountant, etc. may be deductible.
  • Trip costs: Any business-related travel may be deductible, so keep track of all your receipts and expenses.

4. Income Deferral or Acceleration

Income is taxed the year it is received. Depending on your situation, you may be able to choose to pay higher taxes this year or next year. Why pay now if you can pay later? To reduce your tax burden for this year, carry forward any income you can to next year. For example, if you work on a cash basis, you can send invoices in January 2023. The money you receive then will not be taxable until 2024.

If, however, you want to lower your taxes for next year, take as much income as possible in 2022. Make sure you receive all your bills before the end of the year. This may reduce the income you claim in 2023, when your income tax may be higher. It makes sense to defer income if you think you’ll be in the same or lower tax bracket next year. You don’t want to defer income if it could push you into a higher tax bracket. If so, you might want to accelerate income this year so you can pay taxes while you’re in a lower bracket now, rather than in a higher bracket later.

Tax planning is an important part of running a small business. By taking advantage of these strategies, you can reduce your tax liability and keep more of your hard-earned money. Keep up to date with the latest tax news so you can take advantage of any opportunities or deductions that may be available to your business. Working with a tax professional can help you identify even more tax strategies to minimize your tax liability.

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Congress can stop credit card companies from crushing small businesses https://glwdrk.com/congress-can-stop-credit-card-companies-from-crushing-small-businesses/ Wed, 02 Nov 2022 22:00:34 +0000 https://glwdrk.com/congress-can-stop-credit-card-companies-from-crushing-small-businesses/ OPINION: Choice. Competition. Cost reduction. These are things that everyone wants in today’s economy. Yet when it comes to credit card fees, they’re nowhere to be found — and they’re crushing small businesses and their customers. Main Street and millions of families across the country are counting on Congress to right this wrong. The future […]]]>

Choice. Competition. Cost reduction.

These are things that everyone wants in today’s economy. Yet when it comes to credit card fees, they’re nowhere to be found — and they’re crushing small businesses and their customers. Main Street and millions of families across the country are counting on Congress to right this wrong. The future of small businesses and the communities they anchor would benefit.

The credit card fee crisis has been building for years, but in the wake of the pandemic, it’s worse than ever. Small businesses and customers are reeling from inflation, with price increases the inevitable result of labor shortages and supply chain issues. Amid these terrible challenges, huge credit card companies have shockingly decided to increase the fees they charge small businesses and customers. This adds insult to inflation at the worst possible time, which costs money that Main Street needs to survive.

Credit card companies have more than doubled “swipe fees” over the past 10 years, with the latest painful increases coming last April. You might be wondering: how can they get away with this brazen assault on small businesses? The answer is simple: there is no real competition in the credit card market.

Consider what happens when someone swipes their credit card at a family store. The credit card company charges them two separate fees that small businesses have no control over.

To start, they have to pay a fee for the “network” that connects the small business bank to the credit card bank. The credit card company controls the network and is not required to offer any other choices. Small businesses are forced to pay whatever the credit card companies require.

If that’s not enough, credit card companies also set “interchange” fees, also commonly known as swipe fees. These are usually the highest credit card fees, often costing 3% or more of a transaction, and the money goes directly from a small business to a bank. It’s a double mistake: Not only does a small business have no choice, but the credit card company is a third party that controls what Main Street pays Wall Street.

You read that right: credit card companies set the rate small businesses must pay banks. Somehow individual banks can’t decide what a merchant should pay them for using a credit card and have to have their rates set by the credit card companies? It does not pass the smell test.

In a competitive market, a business should not dictate what one business should pay to another unrelated business. It is the only marketplace in the world where the two largest competitors in a marketplace can announce the same “interchange” fee increase, at the same time, on the exact same day. This market is broken and has led to small businesses being scammed by some of the biggest credit card companies and banks in the world.

These skyrocketing fees are pushing countless small businesses to the brink. Still, there’s really no way to push back. Small businesses are just that — small — so they don’t have the power to negotiate with huge credit card companies. That’s why Congress should step in immediately, providing the competition and choice that will lead to lower costs.

Currently, Congress is considering bipartisan legislation called the “Credit Card Competition Act of 2022”. Credit card companies would need to offer at least two networks on each credit card, which necessarily means offering different fee structures. For the first time, small businesses would have multiple options to choose from and could choose the most affordable option. Plus, credit card companies should finally compete for business, just like small businesses have to compete for customers.

This should have happened a long time ago. The Credit Card Competition Act of 2022 and Congress should ensure that it finally happens now. If the status quo continues, the struggles on Main Street will continue to escalate, stifling the economic recovery of small businesses. This is the last thing America needs, so Congress should prioritize cutting costs and increasing the choices small businesses deserve and demand from customers.

• Jeff Brabant is Director of Federal Government Relations at the National Federation of Independent Business.

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Affinity Federal Credit Union appoints Kevin Brauer as its new CEO https://glwdrk.com/affinity-federal-credit-union-appoints-kevin-brauer-as-its-new-ceo/ Mon, 31 Oct 2022 14:29:00 +0000 https://glwdrk.com/affinity-federal-credit-union-appoints-kevin-brauer-as-its-new-ceo/ BASKING RIDGE, NJ–(BUSINESS WIRE)–Affinity Federal Credit Union (Affinity), a full-service, federally insured financial institution, has named Kevin Brauer as Chief Executive Officer (CEO)/President. Brauer is Affinity’s current Chief Financial Officer and will succeed current CEO/Chairman, John Fenton. Fenton was CEO of Affinity for more than 27 years and led the growth of the organization as […]]]>

BASKING RIDGE, NJ–(BUSINESS WIRE)–Affinity Federal Credit Union (Affinity), a full-service, federally insured financial institution, has named Kevin Brauer as Chief Executive Officer (CEO)/President. Brauer is Affinity’s current Chief Financial Officer and will succeed current CEO/Chairman, John Fenton. Fenton was CEO of Affinity for more than 27 years and led the growth of the organization as the largest credit union based in the state of New Jersey.1

“Kevin is a long-standing, highly respected and valued member of Affinity’s leadership team,” said Richard Meene, Chairman of Affinity’s Board of Directors. “He is committed to Affinity’s mission to support the financial well-being of its members and has been instrumental in developing the philosophy, services and impact that will continue to fuel our organization, as well as better support the communities we serve. We are confident in his vision for the future of Affinity and are delighted to appoint him to this role.

Affinity seeks to improve the financial well-being of its members and the communities it serves. Fenton has provided the vision and execution of this philosophy, striving to position Affinity as an industry leader and trusted partner for its members and community. Affinity supports this mission through its range of products and services for the individuals and businesses it serves, including various loan options, credit counseling and debt support, competitive credit card offers , investment and insurance solutions.

Brauer has over three decades of experience in the financial services industry and over seven years with Affinity. He has played a significant role in leading Affinity’s value proposition to its members and in designing Affinity’s financial wellness initiatives. At Affinity, Brauer led the Administration, Human Resources, Finance, Payments Solutions, Data, Digital Technology, Personal and Commercial Lending, Enterprise Risk Management and Operational Risk groups. Prior to joining Affinity, he held leadership roles at VSoft Corporation, Alloya Corporate Federal Credit Union, and Empire Corporate Federal Credit Union, as well as public accounting roles for a Fortune 500 company.

Brauer commented, “I am honored to lead Affinity into the next phase of its history, building on the foundation John has laid to promote the financial well-being of our members and our communities. Our goal is to improve the overall financial well-being of our members and it is exciting to partner with our team members across the organization to achieve this in a new capacity. »

Brauer will assume the role of CEO/Chairman effective January 1, 2023. He will report to the Board of Directors and assume leadership of Affinity’s 500-person team at its headquarters in Basking Ridge, New Jersey, and in its more than 20 branches. Fenton will remain in a transition role for a few months; he will also retain responsibilities within the Affinity Foundation.

Brauer is a Chartered Public Accountant who holds an MBA from Marist College and a Bachelor of Business Administration from Niagara University.

About Affinity Federal Credit Union

Affinity Federal Credit Union is a full-service, member-owned, community-driven financial institution whose mission is to support your financial well-being. With over 20 branches in the tri-state area, Affinity is the largest credit union headquartered in the state of New Jersey, proudly ranking in the top 2% of all credit unions by size of assets.1 The Affinity difference is that people help others on a deeper level and understand what YOU need to make your unique dreams come true. For more information, please visit www.affinityfcu.com.

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Reading: White House, Treasury and state officials discuss U.S. bailout investments in manufacturing through the state’s Small Business Credit Initiative https://glwdrk.com/reading-white-house-treasury-and-state-officials-discuss-u-s-bailout-investments-in-manufacturing-through-the-states-small-business-credit-initiative/ Fri, 28 Oct 2022 22:05:37 +0000 https://glwdrk.com/reading-white-house-treasury-and-state-officials-discuss-u-s-bailout-investments-in-manufacturing-through-the-states-small-business-credit-initiative/ Thursday, October 27e 2022, officials from the White House, Treasury Department, Arizona, Michigan and Minnesota met with stakeholders to discuss key investments from the American Small Business Credit Initiative (SSBCI) Rescue Plan (ARP), which are expected to bring billions of dollars in funding to small businesses involved in manufacturing and critical supply chain initiatives. Since […]]]>

Thursday, October 27e 2022, officials from the White House, Treasury Department, Arizona, Michigan and Minnesota met with stakeholders to discuss key investments from the American Small Business Credit Initiative (SSBCI) Rescue Plan (ARP), which are expected to bring billions of dollars in funding to small businesses involved in manufacturing and critical supply chain initiatives.

Since taking office, the administration has bolstered manufacturing with the creation of nearly 700,000 manufacturing jobs, the most of any president on record, and nearly 100,000 jobs above pre-pandemic levels. Companies are choosing to do more in America, and we see the industries of the future growing with more than $200 billion in new investment in electric vehicles, semiconductors, and other critical industries. Major manufacturers like GE Aviation and Siemens Energy are making new commitments to help their small and medium manufacturers modernize.

More than 90% of manufacturers are small and medium-sized enterprises, which employ more than 40% of workers in the sector. They are essential anchor employers and engines of economic development in communities across the country. With nearly $10 billion from the U.S. bailout, SSBCI will fund programs administered by states, the District of Columbia, territories, and tribal governments that will play an important role in helping small and medium-sized manufacturers grow as the Biden-Harris administration is continuing its work to build a bottom-up and middle manufacturing economy.

SSBCI is expected to catalyze up to $10 of private investment for every dollar of capital funding, meaning SSBCI-powered investments will result in billions of dollars in public and private funding for small manufacturers, as well as investments key in several other national priority areas. . At the meeting, state officials from Arizona, Michigan, and Minnesota detailed how their states’ SSBCI-funded initiatives are supporting investment in the manufacturing sector. Their comments are summarized below.

Michigan:
The state is expanding three successful lending programs rolled out in 2010 in the wake of the Great Recession. The three loan programs include: a program that offers loan guarantees, a loan participation program where the state buys a share of loans, and a program that will provide collateral support to help borrowers qualify for loans. These last two programs target industries with high potential economic impact, including manufacturing. Michigan allows all three loan programs to support revolving working capital lines of credit. This approach is particularly important for manufacturers who supply parts or tools to the automotive industry, where the development of new tools can take months before these investments generate cash flow from sales to upstream manufacturers. Flexible capital is important because manufacturers typically face a cash shortfall where they need to invest in people, processes, and equipment before generating revenue from order fulfillment.

Arizona:
Arizona intentionally developed very flexible SSBCI programs after recognizing that manufacturers would benefit from programs with less rigid guidelines. State officials noted that different lending models within a broad continuum of programs can provide options that businesses need, especially Arizona manufacturers facing ever-changing financing challenges in response to changes in supply chain demand.

Additionally, Arizona is a state that has built strong relationships with Small Business Development Centers (SBDCs), partners often identified by states as beneficial to their SSBCI programs and manufacturers in particular. State partnerships with SBDCs have taken various forms in different states. Arizona, for example, requires the SBDC to target small businesses, including manufacturers. The Arizona Commerce Authority is home to the Manufacturing Extension Partnership, another important source of technical support for manufacturers.

Minnesota:
The state has seen a marked increase in requests from industrialists, local economic developers and financial institutions to support the financing of state-of-the-art equipment for industrialists. Minnesota stakeholders emphasized the need for capital to support the purchase of equipment that improves processes, upgrades technology, and increases efficiency and productivity. Traditional financial institutions have indicated that it is difficult to underwrite state-of-the-art equipment using prudential lending standards, resulting in a funding gap. Another obstacle is that while investments in high-tech machinery and equipment may lead to increased productivity and improved competitiveness, they may not lead to the increased job creation needed to meet the requirements of existing loan programs. funded by the state.

With SSBCI funding from the American Rescue Plan, Minnesota is developing a new loan participation program to fill this funding gap. The Automation Loan Participation Program (ALPP) offers a complementary loan to private financing provided by a bank, credit union, community development financial institution, nonprofit lender, or vendor. Loan participations can total up to $500,000 to purchase machinery, equipment and software designed to increase manufacturing efficiency. The program complements an existing state program that funds worker training in the use of new automation equipment. A final expected benefit is that the ALPP is expected to increase the number of relocated manufacturing operations and allow companies to move some outsourced activities in-house. The program targets established manufacturers.

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Participating States as of October 27e The meeting clearly highlighted SSBCI’s potential to support small manufacturers across the country. This work from Arizona, Michigan and Minnesota builds on SSBCI’s proven track record of manufacturing support, having invested more than $2.5 billion in federal and private funding through more than 2,500 loan or investment transactions through the previous version of this SSBCI 1.0 program and making manufacturing the industry that received the most support.

The ARP-funded SSBCI will build on this proven success by providing both debt and equity capital. This can help businesses overcome the challenges they face in securing capital investment, working capital, and financing for equipment and facility upgrades. Recognizing these varying needs, individual states have designed SSBCI loan and capital programs to support some or all of these uses, based on the specific needs of manufacturers in their states. Traditional financial institutions are keen to provide financing to manufacturing companies, but gaps in collateral may limit the amount of credit they can provide. This may cause some manufacturers to turn to more expensive forms of financing.

To help states maintain the momentum of expanding manufacturing jobs and investments made under the Biden-Harris administration, the Treasury has begun hosting meetings for states to share best practices with each other and collaborate to support small manufacturers. These meetings collectively brought together more than a dozen states. Soon, the Administration will release a report highlighting program initiatives that can serve as models for other jurisdictions.

Presenters and representatives from the Biden-Harris administration included:

  • Gene Sperling, Senior Advisor to the President and US Bailout Coordinator, White House
  • Michael Negron, Special Assistant to the President for Economic Policy, White House
  • Zach Butterworth, Director of Private Sector Engagement, White House
  • Jana Platt, Public Engagement Analyst, White House
  • Adair Morse, Deputy Assistant Secretary for Access to Capital, U.S. Department of Treasury
  • Jeffrey Stout, Program Director, State Small Business Credit Initiative, United States Department of Treasury
  • Ron Kelly, Outreach Manager for the State Small Business Credit Initiative, United States Department of Treasury
  • Christopher Cook, Managing Director – Access to Capital, Michigan Economic Development Corporation
  • Sandra Watson, President and CEO, Arizona Commerce Authority
  • Ken Burns, COO, Arizona Commerce Authority
  • Steve Grove, Commissioner of Jobs and Economic Development, Minnesota

If you would like to learn more about the SSBCI programs and points of contact offered by your state, please visit the SSBCI website.

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