Business Support

Tips to ensure your business survives the Coronavirus pandemic

The COVID-19 pandemic is affecting businesses differently depending on a variety of factors including industry, location and mode of operation.

Regardless of your industry, the economic impacts are wide reaching in the economy so every business owner is encouraged to take the time to assess and plan. Use the current climate as an opportunity to establish a good foundation to help your business adapt and grow.

Ask yourself some hard questions such as "could I lose my client's over this?". If things continue the way they have, with the way that you're running your business right now, will you be able to continue serving your customers? Is your business being interrupted because you're being forced to close due to curfew or mandatory closures? Is your supply chain being disrupted?

Evaluate your risk, and then think about what you can do to minimize the impact.

Check your insurance coverage

See if you have business interruption coverage, and see what the coverage is. Not all policies will cover interruptions from this, but it's possible so you want to make sure that you understand what your options are.

Identify alternative sources of revenue

Start thinking of alternative things that you can tweak to help your business survive and to help keep money coming in. This may include providing digital or DIY versions of your services, running promotions on gift cards for clients to use once things go back to normal or adding an eCommerce component to your business.

Identify non-essential expenses

This is a time to run as lean as possible. You may have signed up for a program or subscription with good intentions of utilizing at some point in our business to run more efficiently. Or perhaps that subscription is for the benefit of physical customers that won’t be coming in for a while.

The fact is as business owners we get pulled in a million directions and unfortunately we end up paying for services that we aren't using. Now is a great time to look at services and subscriptions you're paying for that you are not using or temporarily pausing due to the COVID-19 crisis. Perhaps you have been paying advertising that hasn't been generating results. Look at your profit and loss statement and identify the must have expenses to properly operate your business and remain compliant. You want to be thinking both short term and long term.

Check your business’s financial health

Review with your accountant or bookkeeper your cash reserves, make sure that you're looking at all of your assets, look at their liquidity, how quickly can you convert them into cash if necessary? Also look at your cash flow, how has your money been flowing so far? Do some forecasting, creating some trend scenarios, how things could play out.

If all income stops suddenly, how long can you pay your bills for? This is a time to be very frank and think about the worst-case scenario, just so you can make informed decisions going forward. For you to be able to do this you will need to have a good set of books to properly evaluate your current expenditures and identify anything that isn't truly essential. If your books are not up to date or accurate, this is the time to address that.

Use credit wisely or don't use it at all

Using credit, either in the form of your existing credit cards, lines of credit or through economic disaster loans, is something you want to use credit as a last resort to keep you in business and after careful planning and consideration. Do not rely on credit to carry your full load overhead and administrative expenses if you normally wouldn’t be able to afford the payments when things are back to normal.

Tweak your marketing strategy

Identify what is working, what is not and needs to change. You may want to increase your use of social media and change your messaging to get in front of more customers as everyone is home on their computer or phone. If you find yourself with events being canceled, customers not coming in and prospects drying up, you will have time that you can use to work on your marketing strategy to make things better.

Keep communication lines open with your customers, If you have a mailing list or social media, you can send newsletters or do live videos to keep them engaged, nurture it, they'll remember that.

Use your time effectively

Create that content that has been on your to-do list for weeks or months, organize your admin files, review your calendar and make sure it is accurate, get your receipts and tax documents to your accountant, revamp your systems and workflows so you’ll be more efficient when things pick up again.

Don't waste this time feeling sorry for yourself because that is not going to be beneficial for your business. Learn, read, take courses, there may have been courses that you have purchased and then got too busy to finish. This is an opportunity for you to have a good foundation put into place to help your business thrive in the future.

Right now, it looks like the disruptions are only for a couple of weeks, but some sources indicate the effect will last months for some business and years for the economy as a whole. So be proactive and not reactive in your adaptability to change how you do business.

COVID-19 Resources for Small Businesses

There are a lot of questions about the impact of the current situation in our businesses.

Here is a collection of links with useful resources:

IRS Page with updates on tax related changes
US Treasury Department Resource Page
Links to COVID-19 resources by state
Small Business Administration Disaster Loan Program
Florida Emergency Bridge Loan Program
Spreadsheet of Relief Resources - will be updated by Gusto so bookmark and check back for updates

Additional information will be shared on our Facebook page, YouTube and our other social media channels.

The media is reporting a lot of different things that are being planned to help small businesses. Please remember that just because something was announced at a press conference, it doesn't mean that it is approved and ready to be implemented.

I encourage you to not count on anything proposed until it has been signed into law and officially announced by a government agency because proposals can be modified, delayed or not implemented at all.

Private enterprises are also coming up with programs to assist businesses so I encourage you to keep an eye out for media announcements on those in case you are eligible for any of those initiatives.

We are all in this together and together we will overcome the challenges.

Our Favorite Tools for Remote Work

As a fully virtual business, we have a "tech stack" that is optimized for working remotely. As more businesses are having to suddenly switch to a remote work model due to the disruptions from the COVID-19/ Coronavirus pandemic I am listing our most frequently used tools here in hopes that it will help you narrow down the options in your search.

Virtual Meetings- Zoom

We use Zoom for all meeting, it's easy to join via computer, via mobile app, by dialing in via phone. We usually use video but you can also have audio only meetings. We can share screen, do remote control, record and much more.

Popular Alternative: Skype for Business, Google Meet

File Storage- Google Drive

This is not the same as the free Google Drive designed to store personal photos. We use GSuite aka Google for Business which has security and other features that the free version lacks. GSuite offers a lot more than just file storage, we also use it for email, calendar and more. All of the tools are built with remote collaboration in mind.

Popular alternative: Dropbox

Task Tracking/Project Management- GQueues

This tool is built specifically for GSuite which is why we love it so much as it integrates seamlessly with our calendar and email so nothing falls through the cracks and we can time block, it's easy to assign tasks and all team communication stays together with it's corresponding task/project.

Popular alternatives: Asana, ClickUp

Team Communication- Slack

We don't "need" this tool because all work related communication is in GQueues and linked to the relevant task/project. We use Slack for general "water cooler" type of conversations, sharing funny memes, links to articles and general chat to maintain our team bond and corporate culture but it can do so much more. We don't use it a whole lot but it's nice to have. I know a lot of teams that use this as their primary tool for all team communication instead of email.

Popular Alternatives: Google Hangouts, Microsoft Teams

Video Communication- Loom

While we use Zoom for real-time video communication. Loom is great for asynchronous communication where it's faster to demonstrate something than to try to explain it in writing or by phone. You can record your screen, your camera or both and talk while showing how something is done.

Password Security- Lastpass

Security is of the utmost importance and this means using complex and unique passwords that get changed often. The only way to achieve this is by using a password management app. We are able to share logins securely and use their Authenticator app for 2 factor authentication which is safer than SMS verification.

Popular Alternative: Dashlane

VPN- NordVPN

Cyber security is critical in our business and for this reason we don't do any work without using a VPN to encrypt our internet connection.

Popular alternative: ExpressVPN

Remote Computer Access- Splashtop

While we no longer have a need to remotely access computers because all of our tools and files are in the cloud. I realize that you may need this type of tool when first getting started in transitioning to virtual work. We loved Splashtop in the past.

Popular Alternative: Teamviewer

Check out our YouTube channel for videos on tips on how to help your business survive the economic impacts of the Coronavirus and working remotely while your kids are at home. Feel free to share your comments or video/blog ideas.

We are happy to assist our clients with any questions about these tools or remote work to help your transition during this difficult time. Stay well.

2020 Federal Tax Due Dates

Filing your taxes can be confusing with trying to track the different due dates and forms. You don’t want to get it wrong and incur penalties.

This simple list covers the most common federal tax due dates so you can enter the ones that apply to you in your calendar. Make sure that you also research your state tax obligations if applicable so you don’t miss those.

Annual Tax Filing
Individuals and Families – Annual personal income tax filings (Form 1040) are due on Wednesday, April 15, 2020. The majority of people file a 1040.

Corporations (including S and C Corps) – C corporations (Form 1120) also file on April 15.

S corporations (Form 1120S) and partnerships (Form 1065) file on March 15.

Estimated Tax Deadlines For 2020
Payments for estimated taxes are due on four different quarterly dates throughout the year:

1Q — April 15
2Q — June 15
3Q — September 15
4Q — January 15 of the next year

Estates and Trusts
Estates and trusts file Form 1041. This is also due on April 15, 2020.

Extension Due Dates
Extended returns have different filing dates depending on the type of tax form being filed:

Form 1065 extended return — September 15
Form 1120S extended return — September 15
Form 1041 extended return — September 30
Form 1120 extended return — October 15
Form 1040 extended return — October 15

How to get QuickBooks Support without getting ripped off

In this day and age when we want to find the phone number for a business, we Google it. That usually works very well as long as you are not looking for the phone number for technical support for QuickBooks.

Unfortunately, there are many companies that are not affiliated with QuickBooks that pose as QuickBooks technical support and oftentimes, their phone number is the first to pop up when using a search engine.

The quality of their support will vary but I’ve seen some users be ripped off by paying thousands of dollars for services that didn’t solve their problem or paid to receive troubleshooting that Intuit support provides at no extra cost. In the worst cases, users have had malware installed in their systems and their identities compromised.

Which phone number you get when searching online will vary depending on the search engine and the keywords used.

So how can you make sure you get the number to the legitimate customer support department at Intuit and not some random third party?

Intuit has several QuickBooks products so there isn’t a global number for all support. The contact information will depend on the product that you have. Your best bet is to contact them from inside the QuickBooks product that you use to ensure that you are routed to the correct department.

In QuickBooks Online, simply click the “Help” link on the top right hand corner of the screen.

If you use QuickBooks Desktop 2017 or later, press F1 or select Help > QuickBooks Desktop Help to get help faster.

If you are looking for information on how to do something inside the program, you can visit https://quickbooks.intuit.com/learn-support/ to access tutorials and an online community to ask questions.

If you need bookkeeping help or training on how to use QuickBooks Online, we can help.

Important Business Tax Deadlines for 2019

At some point every year, business owners begin scrambling as they try to figure out what forms they must file and when they must file them in the new tax season.

Here are some other important deadlines to keep in mind. This is not a comprehensive list, please consult with your tax advisor for any other deadlines that may apply to you. State deadlines will vary, please check with your state for applicable deadlines that apply to your business.

Estimated Taxes
The fourth and final estimated payment for the 2018 tax year is due on Jan. 15, 2019.
Estimated tax payments for the 2019 Tax Year (IRS Form 1040ES)
April 15, 2019
June 17, 2019
Sept. 16, 2019
Jan. 15, 2020

W-2 and 1099 Reporting
January 31, 2019- Deadline for employers to mail out W-2 Forms to their employees and for businesses to furnish 1099 Forms reporting, among other things, non-employee compensation, bank interest, dividends, and distributions from a retirement plan

February 28, 2019- Deadline for businesses to mail Forms 1099 and 1096 to the IRS

Partnership returns (IRS Form 1065):
March 15, 2019
Extended deadline is Sept. 16, 2019

C-corporation income tax returns (IRS Forms 1120):
April 15, 2019 for C corporations that operate on a calendar year
Extended deadline is Oct. 15, 2019
The deadline for C corp returns is the 15th day of the fourth month following the end of the corporation’s fiscal year if the corporation is on a fiscal rather than a calendar year.

S-corporation returns (IRS Form 1120-S):
March 15, 2019 for corporations on a calendar year
Extended deadline is Sept. 15, 2019
The deadline for S corp and partnership returns is the 15th day of the third month following the end of the fiscal year if they are on a fiscal year rather than a calendar year.

Individual Tax Returns (Form 1040)
April 15, 2019- Deadline to file individual tax returns for the year 2018 or to request an automatic extension (Form 4868). An extension provides an extra six months to file your return. Payment of the tax is still due by April 15. You can submit payment for any taxes you owe along with the extension form.

What If You Miss a Date?
The IRS says you should file your return as soon as possible if you miss a deadline. If you owe taxes, pay them as soon as possible as well. You’ll probably be hit with a moderate financial penalty, if only an extra interest charge, but the IRS should accept your money and your return and that will be the end of it unless there’s another problem.

If you owe money and don’t want to send a check to the IRS via snail mail and risk all the extra time that might entail, go to IRS Direct Pay and have the payment debited directly from your bank account. You might also want to e-file your late return if possible if you haven’t missed that deadline. Most taxpayers can do that at IRS Free File. The IRS will accept e-filed returns up until Oct. 15.

And if you can’t pay the tax you owe immediately, don’t delay. File your return anyway and immediately apply for an installment agreement. The IRS will let you pay over time as long as you make arrangements to do so.

Record Retention Guidelines for Businesses

Keeping payroll, HR and financial records indefinitely dramatically increases the risk of identity theft by hackers.

Shred sensitive documents no longer needed and wipe them off computers, printers, copiers and other equipment. Don’t rely on using File Manager because they do not insure that the wiped data cannot be hacked. Be especially careful if your business donates, sells or returns leased equipment to other organizations.

Outside vendors that manage asset disposal can help, but they also pose risks. Choose a vendor that:

· conducts background checks on employees;
· offers risk indemnification;
· tracks assets during the disposal process; and
· disposes of your equipment in an environmentally responsible way.

Minimizing unnecessary storage

There are different guidelines for how long to keep business v. personal data:

General rules
Retain records that support items shown on your tax return at least until the statute of limitations runs out — generally three years from the due date of the return or the date you filed, whichever is later. However, there’s no statute of limitations if you fail to file a tax return or file a fraudulent one. So you’ll generally want to keep copies of your returns themselves permanently, so you can show that you did file a legitimate return.

· Employee records—keep for 3 years from termination.
· Employee earnings records—keep for at least 4 years after termination. For records involving unclaimed property, such as an unclaimed paycheck, check state laws.
· Timecards—keep for at least 3 years if your business engages in interstate commerce (i.e. is subject to the FLSA); at least several years, regardless.
· Employment tax records—keep for 4 years from the latter of the date the tax was due or the date the tax was paid.
· Travel and entertainment records—keep mileage logs, receipts and other supporting documents for 4 years (IRS rules).
· Sales tax returns—keep as long as state law requires.
· Business property—keep records that substantiate costs and deductions (purchase, depreciation, amortization and depletion documents) until the asset is sold, traded in or disposed of plus 7 years, according to IRS guidelines.

When in doubt, don’t throw it out
It’s easy to accumulate a mountain of paperwork (physical or digital) from years of doing business. If you’re unsure whether you should retain a document, a good rule of thumb is to hold on to it for at least six years or, for property-related records, at least seven years after you dispose of the property. But, again, you should keep tax returns themselves permanently, and other rules or guidelines might apply in certain situations.

Year End Checklist for Service Based Businesses

If you’re like most businesses, your fiscal year ends on December 31. Make sure you’re not stuck at your desk frantically pulling files while everyone else is out celebrating the holidays— start early.

Just follow this list of to-dos, marking them off as you complete them. Then enjoy the end of the year with clients, friends and family.

Bookkeeping

It is important to make sure that your books are up to date. This not only makes tax preparation a breeze, but it also gives you important insight on the health of your business. Without accurate books you can't tell if you are making a profit, spending too much on overhead or have customers that owe you money.

Follow these 3 steps to get your books caught up

Make sure that all of your transactions are entered in your accounting system. Pro tip: if you connect your bank account to your accounting platform, this will be automatically done for you.
Make sure that transactions are allocated to the correct categories- this step will help you find tax deductions.
Reconcile your bank accounts- this step is important to make sure that transactions cleared the bank for the correct amount and to ensure that there aren't any duplicated entries or other errors.
Make End of Year Journal Entries- your bookkeeper will take care of this, if you DIY your bookkeeping you can research how to do this or hire a bookkeeper for a Year End Review of your books to make sure that they are accurate and adding adjusting journal entries.

If you haven't been keeping up with your bookkeeping and don't have the time to do it yourself, don't wait until the last minute. Your bookkeeper and tax preparer get very busy at this time of year and rushing can lead to unnecessary stress and increases the risk of costly mistakes.

Contact me if you need help getting your books caught up.

Taxes

The more disorganized your information is, the bigger the tax bill (not to mention, your tax preparer's) will be, now is the time to be proactive. If you did the bookkeeping steps above, you are halfway there.

Know when the dates for filing taxes are due. Noting the due dates for the year in advance will help you set a schedule. Mark them on your calendar and formulate a plan for making sure you are ready when they come around.
Make sure that you send W-2 to your employees and 1099 forms to your contractors by the deadline.
Complete bank reconciliations. This should have already been completed in the section above, if it hasn't yet, don't delay! This is important to ensure that the correct income will be reported and potential deductions recorded for when you need to know them.
Set up a meeting in December with your CPA or tax preparer. This will allow you to create a plan of attack and give you and your tax preparer a chance to discuss potential problem areas. Request a list of what they will need from you, any templates they’d like you to use and copies of last year’s working papers for reference. Ask for clarification on anything that’s unclear before things get busy.
If you plan to do your own taxes, research what items you will need and what software you will use.

Business Health

Take a moment to check the pulse of your business. The beginning of the year is usually the best time to make needed adjustments.

1- Review your business structure to ensure it’s still a good fit
Have you outgrown your sole proprietorship or other current legal structure? If you decide to make a change, the first of the year is the time to do it.

2- Revisit your business plan and adjust it accordingly
Update your privacy statement, add new sales targets, and create or update customer policies. This simple act focuses your thoughts and ensures that your goals align with your company's current state.

3- Review your marketing plan (or create one if you don't already have one)
Is your advertising paying off? It's fun to implement new advertising strategies but with all the other hats you wear, it’s easy to forget to look back at what worked, what should be stopped, and what should be kept and improved. Analyze your marketing channels and see if you are getting a return on investment. This includes print materials (brochures, business cards), social media presence, online advertising, sponsorships, print ads, etc.

4- Review your Website
Take a look at your website, does it look outdated? are parts not working? Is it mobile friendly? Have you done any SEO optimization?
If your website is made with WordPress, when is the last time that core, plugin and theme updates were installed? Do you have backups?

A secure and updated website is critical for your business' reputation and can impact your revenue. Make sure that all security patches available have been applied and that you have current backups. Plan any redesigns or repairs to ensure that your business' virtual presence is modern and professional.