With a new year comes the opportunity at Forbush and Associates to pull up our shirt sleeves and get down to work especially on the Fiscal Cliff and the American Taxpayer Relief Act (“Fiscal Crisis Bill”) and what they really mean to small businesses in particular.
Are we worried? Not in the least. In fact, if we all live by the advice of Charles Darwin, we should be just fine by the time that ball drops again in NYC.
“It’s not the strongest species that survives, nor the most intelligent that survives.
It is the one most responsive to change.”
Things will change in 2013 and as your advisor and friend; I’ll go out on a limb for you to shed a little light of some of the highlights of what all this chatter is about – for small businesses in particular.
In today’s economy we never recommend that any business make any great leaps and bounds to change their business operation. And today that couldn’t be more important. Yet we never advise any company to remain stagnate and stale. We live by the saying that if a company is not growing and changing it is dying and shrinking. Start with your employees; ask them things that could be improved to increase efficiency, sales, and profit. I guarantee they have great ideas they have held back on.
To bring some positive options into the never-ending gloom and doom of the media, here are a
few pieces of forward-looking advice from our home-grown 50+ years of experience as CPA’s in Reno, Nevada, who live and breathe the opportunity to help small businesses prosper.
If you had planned to expand your staff, extend a lease or make a purchase on a significant piece of equipment, stand by the numbers. Often times decisions becomes based in emotions instead of the business case. The path that has kept the business strong and alive today began by analyzing the decisions based upon the business case with the tax effect as a calculated variable. We always recommend analyzing the business case and never make the decision based purely upon the tax consequence. Thanks to the law passed on January 2, 2013, Congress left us a little wiggle room when it comes to tax variables.
If you can’t live without that new technology upgrade, there may be some hope. Section 179 allows small businesses to deduct rather than depreciate the cost of many types of equipment, at $500,000 for 2013. Thank Congress; it was scheduled to fall to $25,000.
If you still need some personnel assistance, consider part-time, staffing agencies or even temp hires can be a good alternative between now and then. If business continues to grow into the second quarter, we might offer some altered advice.
Watch The Net
We’ve all heard that money is not necessarily the guiding light to keep your staff happy. However, the payroll tax holiday that was scheduled to expire January 1st was not extended, causing a 2-percent point increase in the Social Security payroll tax withholding which means an employee who is earning $50,000 a year will have $1,000 less in take-home pay. Keep an eye on morale. We have fielded many questions from our client’s employees as to why their net pay decreased. Be proactive explaining the change to your employees.
In addition, as a small business owner, be aware that many people will respond to this cut by cutting back on discretionary spending. Keep an eye on your sales as you might be indirectly affected.
Conversely, the bill extended long-term unemployment benefits which will keep those who seek work seeking goods and services to keep their heads above water and life moving forward as best as it can.
Watch your Wake
With all the unsettled news about which axe will fall next within the world of economics, it’s important as leaders in your business to remain strong, calm and collected around the water cooler. Much like the wake of a large boat, business leaders should be aware of the wake that they leave when they depart a room or business meeting. Your impact may be much larger than you think.
Still on Edge?
You’re not alone. There are pounds of pages that we have absorbed on your behalf so take advantage of our offer. For cutting-edge advice on how to run a better business or see a better bottom line in 2013, call us today for a free consultation
775 337 6001