Now that we’re through January (and all of the 1099’s and payroll-related information returns), we take a small breath … but then things start ramping up again for us here at Kaufman Financial Services, Ltd.

So let this serve as an early notice that it would be a very good idea to get on our calendar as soon as you’re able. 

And I’m well aware that this takes time for business owners. But this is also what we’re here for — feel free to reach out with any questions about what we’ll need from you to begin our return preparation processes.
847-243-3600 

(And also, you don’t have to wait to get your books in order or your tax records organized or your tax strategy optimized. We can do that all year long, and it really helps to take a year-round approach to this part of your Buffalo Grove business so that tax season is less stressful and you don’t have to delay getting everything submitted to the IRS.)

Leaving all that aside, I’ve been thinking about how lockdowns, whether locally or nationally, gave us all a taste of the work-from-home (WFH) life and shifted so much of the American — and global — work world. As a business owner, you’ve likely been forced to find new footing when it comes to hiring and managing employees. 

More and more people want a work-from-home option (wearing stretchy pants instead of office wear and time flexibility are too alluring to give up so easily). It seems like many office-based businesses have struck an accord with this reality, most offering hybrid work options if not fully remote work jobs. (And some, of course, have no provision for this … plumbers can’t WFH in stretchy pants.)

But if your business is built to handle WFH, there are new concerns to think about. Yay!

With the move to fully cloud-based business operations, your business via remote workers could be vulnerable to cybercrime. And then there’s “workplace” safety to consider, time-wasting, communication struggles, and (what I want to talk about today) insurance coverage for your workers.

Let’s dive in to business insurance policies.

Remote Work & Your Buffalo Grove Business Insurance Policy
“Out of sight, out of mind. The absent are always in the wrong.” – Thomas a Kempis

Not long ago, your insurance needs were clear for protecting your workers and your company, but workforces changed in the past few years: Chances are good your company has more remote workers than ever. 

Surveys say that post-pandemic workers still expect to work remotely at least one to three days a week. Workers say they’re happy, saving commuting time and bucks. Most remote workers think their bosses will let them keep working outside the office — and many would even take a pay cut to keep working that way. 

But when exactly is a worker toiling away “remotely?” And what does a far-flung staff do to your need for your business insurance, an expensive level of protection that’s dictated primarily by physical presence? 

Different dangers

Not all off-premises work is the same. “Work from home” often involves part of a workweek in a company location and part in the staffer’s home or other location. “Remote work” is working from home full-time.

Recognizing this difference partially dictates how your business insurance needs might change. A common insurance concern for employers used to be an employee (full- or part-time didn’t matter) falling in the office due to negligent maintenance. Still a worry, of course, but no longer as common since remote workers aren’t around to trip on a loose floor tile. 

With a staff of remote workers, your danger of potential damages has changed. More likely today is cybercrime; company equipment in your worker’s home is also more likely to suffer damage from anything from a spilled coffee to a living room window left open in a rainstorm. (Your remote workers might be slow to admit it, but they’re more likely to be distracted at home.) 

Are you responsible?

Yes, practically speaking: Injury during employment may fall under Workers’ Compensation. Your potential liability is unchanged – though a case always depends on circumstances and state workplace laws regarding proof that the injury happened due to employment. 

(The same generally holds true for property damage and other types of insurance. Employees’ homeowners’ and renters’ policies typically don’t cover work-related claims, by the way. Your health and dental benefits for worker will probably remain largely unchanged by remote work, too.) 

But a worker not being on your premises multiples the variables. When and when in their home did the injury or accident occur? What distracted them at that moment? Was the person hurt doing your business or doing their laundry? 

Note one other pandemic-related break in your liability: If you don’t force them to come into your office, they can’t factually claim that they contracted Covid on your premises or during their employment with you. 

What you can do

So your business insurance needs continue more or less the same given remote work, at least for now. But insurers have always been known to give a break on premiums if you do things to lower their chance of parting with money. 

Will your carrier cut you a deal if you verify (in writing) that work you’ve asked for can be done safely in a home? If you helped your employee create a safer work-from-home space and you gave them the right equipment to safely do the job? (Document this — always document everything that might make your argument for lower premiums.) 

While bending the ear of your insurer, confirm whether your business insurance policy covers work equipment that’s not on your premises. And ask about a remote-worker break on your biz insurance — a relatively new idea for carriers, but it could be time for a smart insurance company to offer it and lock in customers. 

Also: 

• Establish written procedures for reporting a work injury at home, including specific instructions on who an employee should contact at your company and by when. 
• Revisit your telecommuting and job description documents, just to make sure nothing in them increases your liability unnecessarily. 

Cybercrime

Your biggest hole runs right through your remote workers’ computers. Off-site, these machines are beyond your real control even if you mandate cybersecurity measures. (They’ll get around to it …) 

The price of cyber insurance generally depends on your risks and the information/data you handle, anywhere annually from the mid-three to the mid-four figures, or more. As with other types of coverage, you can argue for a break for good practices (strong firewalls, for instance, or for documented training of staff in cyber security). 

Inspect all the devices of your staff, by the way, because it’s pretty clear that work gets done everywhere now.

The remote work world is a cutting-edge complication for you and your Buffalo Grove business insurance, we know, but we’re here to help with your concerns old and new.

Helping you make the shift,

Howard Kaufman

The post Remote Work & Your Buffalo Grove Business Insurance Policy appeared first on Kaufman Financial Services, Ltd.

Seen on Twitter this past weekend:

Seems pretty typical with the way the IRS has operated over the past few years. If you’ve had any trouble with them processing anything of yours … well, that’s one explanation (and there are plenty more where that came from). 

But, now that they’re increasing staff with that big cash infusion from the American Rescue Plan, chances are, things will get better… right? Right? …

One thing we know they’re going to get better at: collecting what’s owed to them. And that means an increase in audits. But because their new hires won’t be as well-versed when it comes to business taxes, audits will likely target sole proprietorships, as this business structure is the simplest to tackle (at least tax-wise). 

So all of this speaks to one reason to make sure you get an appointment on our calendar. We can help “audit minimize” your business filing so that you’re not triggering the red flag warnings with deduction claims that you can’t substantiate or that you might be claiming incorrectly. 

And though you have some time to get things in, the sooner you’re able to get the paperwork together, the sooner I can help with tackling your tax obligations. I’m right here when you’re ready:
847-243-3600

Now, in the interest of saving you money in other ways, I want to take some time today to address a cost we see in a variety of business types – and for some, it’s significant. As the prices bloat, knowing how to get the most bang for your buck in a variety of these “small things” is going to help with your bottom line and product pricing (which makes your customers happy).

And if you DON’T do a lot of shipping, this might be a short little case study in expense reduction, for any category in your Buffalo Grove business.

Let’s break down some of the ways you can save…

Kaufman Financial Services, Ltd’s 7 Keys to Lowering Shipping Costs
“It takes four months to ship food aid and 40 percent of the cost is in the shipping. People cannot eat shipping costs.” – Andrew Natsios

Ship happens, as they say. Whether you rely on shipping to stock your inventory or you sell and pass the cost on to customers and clients, your shipping costs are through the roof. 

This expense has jumped as much as 10% in just the past year. The hikes have slowed recently – but between inflation, supply-chain breakdowns, and other problems still coming down the road, the cost of shipping and its effect on your bottom line aren’t likely to improve soon. 

What can you do about itin your Buffalo Grove business? 

Lowering shipping costs with these 7 moves

Lowering Shipping Costs Move #1: Talk to carriers. It may feel like you’ve got no choice in this area of your business, but carriers do vary prices sometimes. Shipping has a ton of variables, so ask if they’ll work with you to find the most bang for your buck. 

Figure your average shipping needs – size and weight of most items, for instance, or how fast the package needs to get there or how fast you need to get it – and call around for the best deal on those factors. 

Is there a price break for pre-paying or for paying online? Free pickup or delivery? If the carrier charges by dimensional weight (the amount of space the package takes up, as opposed to its weight), will two smaller boxes do the same job for you as one larger box and save money? 

Do they reward frequent customers? The USPS loyalty program for business shippers comes with point accumulations and shipping credits – though you do have to spend five-figure annual minimums for the best deals. 

Lowering Shipping Costs Move #2: Stand fast regarding guarantees and refunds. Delivery goofs could cost your customers or you completing a job on time. And the way fees are rising, be on guard against unfair early termination clauses in contracts – protect your right to bail if rates get too pricey. 

Lowering Shipping Costs Move #3: Scatter shipping among more than one carrier whenever possible. First-class mail from the USPS is about the best bargain out there – if you’re shipping less than 16 ounces. After that, your options increase with the price. Why put all your packages in one basket? 

Lowering Shipping Costs Move #4: Tinker with packaging. If you’re the shipper,flat-rate sure saves time: One box or envelope, one price. Seems simple – but is it best for all your needs? Again, a little homework can save you money.

If you don’t have one already, invest in a postage scale. This tool will give you the best idea of which items (especially light ones) will save you the most money in the smallest possible box or envelope. Carriers usually give a break if you use their own containers. And who says cardboard’s always the best answer? Tyvek and padded envelopes tend to ship cheaper. 

The web has more than a few tools to help figure shipping costs ahead of time, such as Parcel Monkey, as well as calculators from carriers themselves such as FedEx and the appropriately named Online Shipping Calculator. 

Lowering Shipping Costs Move #5: Partner up. If you sell online, check a source such as eFulfillment Service to learn how stuff moves around our country and where fulfillment centers/inventory warehouses fit into that network. (Amazon, for instance, has them coast to coast.) You might be able to find one you can work with to trim your shipping costs. 

Check your chamber of commerce or other biz network for local companies you might be able to band together with to get a volume price from carriers.

Lowering Shipping Costs Move #6: Trade time for dollars. If you’ve got a few extra days to spare for a package, slower is generally cheaper. FedEx Ground Economy, to cite one carrier’s no-frills service, will save you a couple of bucks but delivery can take up to seven business days. 

Lowering Shipping Costs Move #7: Insure it elsewhere. If you need more coverage beyond the basic freebie offered by most carriers, third-party shipping insurance might do the trick whether you’re sending or receiving. You can save a bundle if the package has enough value. 

The customer question

Right now, the high cost of shipping is one of those occasional traps in business where there is no easy answer, especially if costs pass on to customers. Charge too much and you might lose business. Charge too little and you lose money. 

Realize that some customers will always complain in hopes of getting a better price overall. Your best bet may be to bake the shipping cost right into the price, but even then some buyers search with a filter that separates shipping and actual cost. Best be upfront about the shipping cost, perhaps with an apology and perhaps an offer of a volume discount.

In these ever-changing times, we’re here to help you tackle all aspects of the cost of doing business to help your Buffalo Grove company.

On your team,

Howard Kaufman

The post Kaufman Financial Services, Ltd’s 7 Keys to Lowering Shipping Costs appeared first on Kaufman Financial Services, Ltd.

Remembering and honoring Martin Luther King this week has me thinking once again about being a voice. 

It’s hard not to get inspired listening to the iconic words of the famous I Have a Dream speech (if you’ve never listened to the entire speech, it’s worth the listen — and it’s shorter than most people realize). 

It makes me think about how being a business owner is about so much more than merely “running a business.” What we do has a real impact on real people. And we can wield that influence in intentional ways.

For many of us, we start with our teams. Without even trying, we impact their lives. (Quite literally because we give them a paycheck, but it goes beyond that). This impact can be for good or for ill, by the way.

But when we see our teams right, we get the opportunity to know them as people, not just as workers. We get to support them in their pursuits and help them come through difficulties. We get to help them succeed beyond the walls of our Buffalo Grove businesses. 

This kind of care, letting them know how much you value them … well, I’m fairly certain that it goes a long way. 

One really practical way you serve your staff and contractors is by getting out their W-2s or 1099s on time. You have a couple weeks until they must be issued. Do not wait for the last minute on this one.

If you need help, you know where to find us:
847-243-3600

Now, speaking of your staff and maybe your 2023 business goals, perhaps you are needing to hire a consultant for some specialized areas in your Buffalo Grove business. 

I have thoughts.

Hiring a Consultant for Your Buffalo Grove Business
“Advice is like castor oil: easy enough to give but dreadful uneasy to take.” – Josh Billings

HR or IT getting complex and time-consuming for you alone? Suddenly what seemed to be an advertising no-brainer looks complicated now? It’s only natural that as your company grows, functions that were once easy get too cumbersome for you to handle. Sooner or later, you wonder about hiring a consultant. 

Finding the right one to help your company, though, is like finding any other answer in business: It takes work. 

But you can handle it, and here’s how. 

What they do and what you need

Consultants come in a lot of varieties and can help (or claim they can) in many areas of business from advertising and marketing to how to handle expanding growing human resources needs to advising on real estate purchases to protecting data as a company grows… among many others. 

You can’t know what you need until you know what you need. Your first task when hiring a consultant is to resist flailing for help in all directions and pin down what problem you want to tackle. You need details and for those, you need homework and questions.

Rather than simply saying you want a consultant to help with your advertising, first, find out where you want to put the ads and for what products. You need tech help – but to install software, pick a server, or build a firewall? Do you need your consultant for one project or for semi-regular engagements over the long haul? 

The more specific, the better. 

What you can expect to pay

For all the above, your big determinants are your budget going in and projected ROI. Until you’ve tacked those down, don’t even Google “hiring a consultant …” 

Pricing is where consultants really get varied. Understand that this can only be just an overview of their rates, but it should give you a snapshot to start budgeting. 

Consultants can charge by the project or by a length of time, such as a day or an hour. Small-business consulting fees can range from the high two figures to more than a grand (sometimes much more, depending on the industry, the length of the project, and the consultant). That breaks down to the low three figures per hour. Generally, the more technical or senior-level the expertise needed, the more expensive it’ll be. 

Makes sense – but how can you rein in costs yet still get the expertise you need? 

Some screening questions are the same as with any vendor. Is this a one-time consulting need? You’re better off with a fixed fee. Is the project ongoing, with repeated fine-tuning down the road? That’ll get you a lower fee than a one-time project but you will have to pay the fee more often, so can you negotiate a volume discount? 

For figuring out a base price to start, check your biz network for experience with consultants’ fees – and, more importantly, for referrals. 

Who they should be

Unfortunately, hiring a consultant isn’t like hiring a tax preparer, plumber, doctor, or other professional who works under fixed and clear levels of certification. There are many certifications for consultants – but, for your purposes, those titles don’t mean as much as finding someone with smarts concerning your company and with whom you just click. 

Common sense will tell you the qualities of a good consultant: ability to listen, learn, and analyze; calm, objective judgment and the skills to document completely; insight and experience (maybe even on the expert level, though again this can cost you) to think strategically; inductive reasoning; and the ability to clearly communicate findings and recommendations so you can act on them. 

You might also need them to have a sharp eye for data or possess management or medication skills – sales ability doesn’t hurt either when it comes to convincing your staff of the sense of the consultant’s recommendations. 

When you’re screening candidates, bounce your problem off them directly. You can also give them hypothetical problems and ask for their judgment in ways to respond (much like you’d do with a job candidate). 

Ideally, you’re not the only one asking questions in the screening. A candidate should: 

• Want to know specifics about what you want out of the consultant’s work;
• Want to know what deliverables and ROI you expect to see and when;
• Give you pricing options – barebones, mid-range, and extent and length levels of service. 

Again, this is only an overview – your mileage may vary depending on what you want to accomplish.

No small business makes it on its own – a lot goes into improving your bottom line. 

And I’m here for you and your small business in hiring a consultant and all initiatives. Think of me as your Consultant Number One. 

On your team,

Howard Kaufman

The post Hiring a Consultant for Your Buffalo Grove Business appeared first on Kaufman Financial Services, Ltd.

How is your year starting out? We’re into week 2 of 2023 … would love to hear back from you on what are the challenges you’re facing in your Buffalo Grove business finances right now.

Relatedly, what are your customer service goals for this year?

One customer relations tool that seems outdated (but is still very relevant): phone calls. Yes, we know there are chatbots and instant messages and many people opt for those avenues first. But, when the templated answers don’t help your customers, they’re sure to dial your company number to get more personalized answers.

Nothing beats a one-to-one interaction with a customer. And that’s what phoning provides.

But what if they’re turned off by the hold time? Or the greeting? Or they’re bounced around to different departments? It’s a surefire way to build frustration.

So, what can you do to improve (and master) the art of customer phone calls? I have thoughts.

Oh, and another quick reminder about how the final estimated tax payment for 2022 is due by Jan. 16th. And the IRS makes it so easy for you with an online payment option. 

But if you need to go over anything there, I’m here for you:
847-243-3600

Now, onto how you handle your business phone…

Mastering Your Buffalo Grove Business Phone Answering
“The great advantage it possesses over every other form of electrical apparatus consists in the fact that it requires no skill to operate the instrument.” – Alexander Graham Bell

Call it VoIP, cell, or landline: Despite all the email and texts, using your business phonefor voice communication (plain old “calls”) remains one of your company’s customer-service lifelines. 

Not to mention that the phone remains a big way to stay in touch with a workforce that might be working outside the company premises – not only for staying in touch with those workers but for making sure they’re representing your company well. 

Make sure everyone in your operation knows how to answer the business phone to your best advantage.  

Still useful

Social media is gaining ground as the preferred customer communication method with a company (especially young-adult customers), but the phone remains popular for customer service among all ages – especially after those customers have bought from a company. (Companies also lose billions annually because of crummy customer service, studies have found.)

The business phone remains a tool for brand image: A phone number on a website or other marketing material generally still conveys more trustworthiness than an army of chatbots even if customers elect to use the bot or email or instant message to reach your company over calling. 

And phones still offer a quicker route to make a call personal for a customer. Who knows who’s really on the other end of an IM or an email? 

Have a designated number for your company, by the way. Established customers can use your home landline (if you wish – and if you still have a landline) or your personal cell. New customers and most callers to your company in general, though, should have one number to reach your receptionist or your voice tree/voicemail. 

Plenty of apps will add a designated business line to your cell phone. You can get a toll-free or a vanity number (where the numerals in your number spell out words relative to your business) for a nominal cost – but with today’s speed-dialing and contacts functions, that may not be worth the money.

‘Can I put you on hold?’

Shoot to pick up all calls on your business phonein two rings. 

It’s not always possible, but many more rings, and you risk starting a conversation with a prospect or customer who’s already out of patience. Have all staffers back up the phones if needed. By about four rings at most, rig your system to bounce to voice tree/voicemail. 

The first words your staff utters will likely set the whole tone for the conversation. Go clear and professional to start: Whoever in your company answers should say “good morning” or “good afternoon,” thank the caller for phoning, give their name and ask why they’re calling. 

Bear in mind that someone on a speaker phone (including your staff) often sounds like they’re inside a gymnasium. If they’re fielding business calls at home, tell them to keep to a minimum playing kids, banging screen doors, barking dogs, and other distracting household noise. 

And is it any surprise that text and other communication methods gain ground on Mr. Bell’s invention when customers expect to be on hold for at least five minutes when they call? Hold’s unavoidable of course – but keep it brief and explain why it’s needed. Ask for the caller’s number so you can ring them back if there’s a disconnect (there probably won’t be – but it shows you care and want to talk to them). Tell them why you have to put them on hold and estimate how long they’ll be there. 

And, if you think you’ll lose track of just how long the customer is on hold… use a timer so you don’t forget.

Listen up

The caller’s using your business phone because they want to talk to a person and not the tap of a keyboard. Your company’s first job here is to listen neutrally to their problem. Use small talk and pleasantries but keep them brief. Hear the caller’s issue before you start talking. 

Ask questions. Take notes – this will help in a sec. Explain your first thoughts on what it’ll take to solve the problem; even short-term action will impress the caller if it’s quick enough. 

Always ask a caller if it’s okay before you transfer them. You’re within your rights to ask if you can call them back later with a progress report. Do so, even if there is no progress, by the next business day.

Wrap up the call – those notes will come in handy here – and always thank them for calling.

Only if your staffer feels there’s time should they try such survey-ish questions as, “Were you satisfied with your service today?” or “What could we be doing better?” Surveys are nice – but aren’t we all starting to feel they’re more for the company than for the caller?

Here’s a real clear survey answer: Repeat business, and knowing how to handle a business call, will help you get it.

Establishing tone

Have an idea of what tone you want phones answered in. If you don’t have a set tone (or vision) for an incoming call, it’s left up to the mood or personality of whoever’s receiving the call. That can go very poorly if someone’s having a bad day. 

Compile some go-to phrases your staff can utilize for tricky situations (a client who’s tired, panicked, upset, etc.) These phrases allow the person answering the call to set the direction of the conversation while maintaining a cheerful attitude. 

And this might seem crazy but encourage your phone handlers to smile while on the phone. It translates warmth in tone and word choice. 

January is a great time to revamp things in your Buffalo Grove business. Besides getting a clear financial picture, you’re going to want to take a look at customer relations. Even though we live in a digital age, it still matters that people know how to answer the phone. Take some time this month to think some of the above through (and get your staff trained).

We’re here to help you take care of more than just taxes in your small business. 

On your team,

Howard Kaufman

The post Mastering Your Buffalo Grove Business Phone Answering appeared first on Kaufman Financial Services, Ltd.

First of all, congratulations on making it through 2022. Pat on the back for sticking with it through the very real ups and the challenging lows. Many of our Buffalo Grove clients went through the wringer … others had their best year yet.

From a personal standpoint, I think we’re all pretty glad to see it in the rearview.

Now, welcome to 2023. Anyone making bold predictions about what’s coming down the pike is setting themselves up for a fall … but I think we can safely say that economic challenges will continue to bombard us. And tech changes will keep knocking on the window of our business ops. 

Especially when it comes to accepting payments.

Cash is king – especially in 2023. However, in an increasingly digital age, when customers can tap their phones to the credit card reader, you better be ready to make room for all the other different formats that can eventually turn into those pleasing pieces of green paper. 

And now, digital payment options can include cryptocurrency. Certainly a volatile investment last year, and one that continues to face … challenges. But nonetheless, it is something not to be ignored. So today, I have some thoughts for you on accepting crypto as a form of payment.

But before I start, quick reminder that the deadline for 4th quarter estimated payments is coming up fast (Jan 16th). If you don’t have your ducks in a row, or you need some help finalizing things for that estimated payment, that’s something we can face together before the deadline. 

Reach out here:
847-243-3600

So, let’s talk accepting crypto… the what, the why, and the how to accommodate it in your Buffalo Grove business …

Accepting Crypto Payments in Your Buffalo Grove Business
“Cash for the soft goods, cash for the fancy goods/Cash for the noggins and the piggins and the firkins.” – Meredith Willson, The Music Man

First businesses took checks, then charge cards and credit cards (manually entered), then electronic payments, third-party payments, and tap-and-pays. What about your next big payment option that, despite headline ups and downs, seems here to stay? Cryptocurrency. 

Is it time for your small business to start accepting crypto from customers? What’s involved – and, more importantly, what would you gain by accepting crypto now? 

Should you or shouldn’t you?

Questions abound, but we do know that crypto is currency (age: about four decades) that exists only digitally, based on a technology that usually has no central issuing or regulating authority. Relying on a technology called blockchain, it uses a decentralized system to record transactions and manage issuing of new money. Types of crypto include bitcoin and Ethereum. 

Owners hold crypto in digital wallets that store the keys to decrypt currency and allow its use. To many, it’s the future of currency. 

It’s also the stuff enormous headlines are made of. FTX, a crypto exchange, recently went from being worth tens of billions of dollars to bankrupt in a week. Luna, a crypto token, went from about a buck to around 116 dollars before it crashed – only another example of a young and unregulated currency universe that’s becoming famous for volatility. 

How could anything this unstable have a future? Why would a smart owner open the doors of their business to this? No doubt your first move toward accepting crypto is answering these questions to your satisfaction. 

All we can tell you now is that even in one of crypto’s most turbulent years, bitcoin still leveled off at a price offering big returns. Mastercard, AT&T, and Paypal are the latest household names to bet on crypto’s future – and the United States is one of the latest big governments to do so, calling for a process to recognize and regulate crypto in agencies from the Federal Reserve to the IRS. 

Suppose you’re not a conglomerate or a huge government? In a recent survey, about a third of small-business owners and top-level execs said their business currently takes cryptocurrencies, with bitcoin, bitcoin cash, and Ethereum among the most commonly accepted. 

Almost half of the owners and execs who don’t accept cryptocurrencies don’t plan to do so in the future – yet a quarter who don’t take cryptocurrencies would like to but don’t know how. 

The good and the bad

Accepting crypto, at least initially, likely won’t change how your customers pay – your proportion of cash and plastic transactions will remain the same. Most shoppers who have crypto hold it as an asset, not as an actual currency; accepting it will probably be more a conversation starter with most customers at the beginning. 

Over time, crypto customers will appear, though, and you will have added flexibility to your payment options (almost always a good move if you know the conditions and ramifications). Accepting crypto can become particularly effective if you sell large-ticket items and through a website. 

Other advantages: 

• Generally lower transaction fees than with credit cards, at least so far;
• No chargebacks are possible with crypto (again, at least so far);
• Facilitates international sales – crypto is used in more than 50 nations.

But the big downside of accepting cryptocurrency isn’t hard to spot: instability. True, the U.S. dollar isn’t worth what it once was either due to inflation, but a whipsawing asset on your ledger can make bookkeeping much more complicated. Not to mention that there are multitudes of cryptocurrencies. 

Customers may also voice environmental objections: Cryptocurrency takes a lot of electricity to create and sustain. 

How to accept it

This is just an overview, but as happens in business more and more, back-office tech helps implement innovation – and accepting crypto is, once again “so far,” no exception. Many crypto payment processing systems integrate with point-of-sale (POS) systems, and an increasing number of POS systems themselves can run crypto transactions. You enter transaction details using barcode scanners and a touch screen and the system verifies the details and processes the transaction – not unlike modern transactions involving credit and debit cards. 

Crypto-friendly systems also operate a lot like now-familiar accounting systems: Advantages include facilitating audits, issuing digital receipts, and easier storage of customer data. These vendors also keep on top of the various cryptos and their dollar value – so you don’t have to. 

Popular POS systems and payment processors for crypto include Coinbase, Bitpay, Coingate, NOWPayments, and ALFACoins. To get an idea of the cost for accepting crypto, you can check fee pages for vendors – here’s the one for ALFACoins.

Is accepting crypto in your business an easy call? No. Is it even time to accept it? Maybe, and maybe not yet. Though sooner rather than later, customers might start asking for it. 

Whenever you have questions about innovation in your small business, whether it’s right for you or the logistics involved and the impact on your business operations (and bottom line), don’t hesitate to reach out. Helping you is what we’re here for. 

In your corner,

Howard Kaufman

The post Accepting Crypto Payments in Your Buffalo Grove Business appeared first on Kaufman Financial Services, Ltd.

I don’t know about you, but after the holidays (and I hope yours were filled with good things and happy times with loved ones), I’m always a bit tapped out on the spending. 

But in true governmental fashion, Uncle Sam is piling it on. Seems like Congress missed the post-holiday “no spending” cue.

One little holiday tidbit that you might have missed: The IRS is delaying the implementation of the 1099 requirement for Paypal, Cashapp, Venmo, et al. Here at Kaufman Financial Services, Ltd, we have been talking to various Buffalo Grove clients about this, and have been advising a stance of “cautious preparation” – cautious because having seen these machinations get gummed up in the past, I maintained a believe-it-when-I-see-it perspective.

After all, we’re talking about the same agency that can barely staff NORMAL operations right now … and they were going to track EVERY $600+ transaction on these platforms? The sheer manpower and logistical lift for this was (and is) mindblowing.

So … the can gets kicked down the road, and we wait and see if this thing ever lands. Your Buffalo Grove bookkeeper can breathe a sigh of well-earned relief.

One thing to keep in mind: The IRS will be ever (and always) aggressive about bringing in more revenue. This is, after all, their stated mission.

And they BETTER be aggressive, because Congress seems to feel no pain when it comes to spending. See below.

Naturally, you’ll have questions about some of this beyond what I’m breaking down today. If you want to talk through any of the federal spending things happening in Washington, I’m here for you:
847-243-3600

So, here’s what should be on your business radar …

Federal Spending Impact on Buffalo Grove Businesses
“It is a popular delusion that the government wastes vast amounts of money through inefficiency and sloth. Enormous effort and elaborate planning are required to waste this much money.” – P.J. O’Rourke

You might have heard about all the federal funding and spending bills flying around Washington. Will any of them affect you and your small business? 

Yes, maybe quite a bit, especially when it comes to retirement plans. 

Capitol Hill appears ready to sign a 1.7 trillion-dollar spending package that will keep lights on in the federal government. Certain tax credits for individuals and for businesses didn’t survive Congressional backrooms. 

Other measures, added at the last minute, stand to change how a lot of companies offer retirement plans, among other changes. 

Then there’s the landmark Inflation Reduction Act that became law last summer and that has given billions of dollars to the Internal Revenue Service, which promises a sharper look at some biz practices. 

Here’s what we know about the federal spending impact on your business at the moment. 

Future security

One of the federal funding plan’s biggest impacts on small businesses will stem from the last-second addition of retirement changes of the SECURE Act 2.0 (the latest version of the Setting Every Community Up for Retirement Enhancement Act). SECURE 2.0 contains changes that proponents have wanted for a long time. 

If you have workers, you’ll want to know these points: 

1. To get small businesses to create retirement plans, SECURE Act 2.0 in the omnibus bill will increase the 50% tax credit for startup and administrative costs of plans to 100% annually for employers with up to 100 employees.

2. Simplified and streamlined paperwork and reporting requirements for employers’ retirement plans and a starter initiative for companies to start offering 401(k)s.

3. The requirement to automatically enroll opt-in employees in their 401(k) plan at a rate of at least 3% but not more than 10%. Some exemptions exist for businesses with 10 or fewer workers and companies in business for less than three years.

4. Eligibility to enter the company 401(k) for part-timers who’ve logged 500 to 999 hours for two consecutive years.

5. Simplified red tape and new tax incentives for small-business employee stock ownership plans. 

A couple other points might be good hiring incentives for you.

– You’ll be able to set up emergency savings accounts for your workers through automatic payroll deductions, capped at $2,500 – they’ll be able to dip into this free of the familiar tax penalties for early withdrawal. 

– You’ll also be able to make matching contributions to a retirement plan for employees who are paying off student loans. 

Your employees (and you) will also see other changes: 

The age when you have to take required minimum distributions go from 72 now to 73 next year, and then to age 75 by 2033. The penalty for failing to take RMDs drops from 50% to 25% and even 10% and catch-up contributions will increase to 10 grand annually, among other changes.  

Less-than-pleasant news regarding federal spending 

Last summer the Inflation Reduction Act became law – and it allotted 80 billion bucks to the IRS over the next 10 years. The agency will spend a good slice of that on modernizing its technology and improving customer/taxpayer service for calls, correspondence, and return processing. Fingers crossed. 

The IRS – for years underfunded and leaking employees – also plans to sign on 87,000 new revenue agents and has pledged to beef up enforcement of some business tax practices. (The Treasury Department notes that over the past decade the IRS has lost 40% of agents who handled complicated returns, such as those of businesses and corporations.) 

Among possible new targets: 

S corp compensation: Following a scathing report on piddling audit rates from the Treasury Inspector General for Tax Administration, the IRS will sharpen efforts to collect employment taxes from S corp officers, ditto partnerships, and multi-member LLCs. The latter are rarely audited, a policy the IRS has publicly said it intends to change when self-employment tax exemptions become involved. 

Micro-captive insurance: The IRS is likely to pay attention to its own annual “Dirty Dozen” list of tax scams – and here’s a popular one. Owners of closely held entities are frequently enticed into schemes where coverages may “insure” implausible risks, fail to match genuine business needs, or duplicate the commercial coverages. Premiums under these arrangements are often excessive and skirt tax law. 

Offshore accounts: The well-heeled have been stashing assets overseas and dodging American tax laws for years. These accounts already come with strict reporting requirements, hefty fines for non-compliance, and usually headlines when the IRS notches one. Expect attention here. 

Wealthy non-filers. The IRS continues to focus on those who simply don’t file a return – especially those earning more than $100,000 a year. And the Failure to File Penalty is initially much higher than the Failure to Pay Penalty. 

Lawmakers change their ideas about federal spending all the time. Depend on us to keep you in the loop and your company on the good side of your taxes and finances.

On your team,

Howard Kaufman

The post Federal Spending Impact on Buffalo Grove Businesses appeared first on Kaufman Financial Services, Ltd.

The 2022 clock is almost at midnight.

An end to a still somewhat crazy year — “the crazy” seems like our new normal, post-2020, am I right? There were a lot of challenges this year and they were … exhausting. Keeping up with the changes and adjusting to the economic pressures… well, these things can make you start looking for the exit door on this whole business ownership thing (and I’m going to talk succession planning strategy in just a minute). 

Believe me, I get it. I’m a tax pro who went through the craziest few tax seasons most have ever seen these past few years. I wanted to smash that eject button more than once.

But maybe you weren’t phased by it all and ate up the chance to square your shoulders and meet the crazy face-to-face. And now you’re riding that high, dreaming far into the future for your Buffalo Grove business. 

Regardless of where you find yourself on that spectrum, let me say this: You have to make a plan for (one day) leaving your Buffalo Grove business behind you – in some form or fashion. 

Because time comes for us all.

If you’re thinking that you want to bring things to a close soon, we should talk about that so we can help you make sure you’ve got all your business ducks in a row — including the tax ones:
847-243-3600

And here’s what life after you leave your company could look like …

Succession Planning Strategy For Buffalo Grove Business Owners
“The victory one would gain after a whole life of work and effort is better than one that is gained sooner.” – Vincent Van Gogh

You’re not your business and your business isn’t you … 

It’s a great theory, but… how true if you’re finally stepping away from the small business that you gave your heart, soul, and a big slice of your life to?

It’s all but certain you’ll have to leave someday — owners recently surveyed gave pretty varied targets for departure — but are you ready for what’s next? 

Here’s how you can be.

Succession planning strategy: Plan to not fail

A solid plan can bring peace of mind and smooth out a process in business (and life). Time for such a plan now. 

Business succession prep means finding or grooming people (often from within) to take over your company when you step aside. Succession plans usually come in two flavors: long-term and emergency. You’re looking here to make the former, which will be permanent after you leave the company and will help everyone see how your operation will be doing up to five years from now.

How many folks need to be affected by your plan? In a small company, it could be a matter of just replacing you (the owner). In a midsize business, you may need to be replaced on a team or a C-suite. 

In other words, if you didn’t show up tomorrow, what role in your company would have the greatest impact on the bottom line? What skills are needed for that role? Who among your staffers (who can also lead) has most of those skills now? (To go outside your company, you might reach out to a headhunter or your referral network.) 

Next, approach your company leaders. Tell them all you can about your succession plan and try to discern if they feel nervous — or accepting and ready. 

Don’t forget to help that team of ready people cultivate their own backups and successors. Who among the lower-level staff has the right attitude but needs training and experience? That’s the real long-term plan for your company. 

More than a third of biz owners leave the company to a relative. If your succession candidate is a family member, you can transfer ownership through your estate — but this can bring up a host of levies from Uncle Sam and elsewhere, including income tax, gift tax, and generation-skipping tax. Check with us before planning to pass your company to a family member. 

Succession planning strategy: Don’t forget about taxes

If you’ve sold your company, the IRS usually examines the sale of each asset associated with your business rather than the sale of the whole business itself.

For tax purposes, you’ll have to categorize each sold asset as either inventory, real property, depreciable property, or capital assets — each with its own tax treatment. 

Sale of capital assets results in a capital gain or loss, for example, and sale of inventory results in ordinary income or loss. This gets even more complicated if you retain an ownership stake in the company. 

You also have to think about ways to protect and preserve the profits you made. Diversifying your investments can help here, holding different asset classes that don’t rise or fall together (tough, we admit, in the recent volatile/bull market) and exchange-traded funds or mutual funds, sometimes with a mix of bonds thrown in. 

We don’t do investment advice, but generally the above will work to preserve wealth and get you the best possible tax situation.  

Succession planning strategy: Living the retiree life

If you’re more or less stepping out of the work world after you leave your company, it’s finally time to take your place in all those idyllic pictures of retired folks relaxing: travel, gardening, former hobbies long dormant … Some retirees read the book they’ve always wanted to; some write the book they’ve always wanted to. 

Pursuing your interests and lifelong loves can be fun. Some people manage to fill a whole retirement with it — and some don’t. Many biz owners find themselves thinking they’ll be stepping aside with no clear idea of what to do next. Feel free to resist overstating the role that leisure can fill in life after your company.

A lot of folks find semi-retirement works best for them. This can look like consulting in their former industry or gig jobs. (Browse the latter at sites like Upwork, Indeed, Freelancer, or Guru, to name a few that scored high in recent roundups.) 

Many former biz owners not ready for retirement (say, in their 40s or 50s or younger) plunge right back into owning/starting a business. Why not? Four out of five small-business owners report routinely working overtime — a hard pace to just leave behind one day — and stats also show that startups with a 50-something at the helm are twice as likely to succeed. 

No matter what you decide, we’re here to help with whatever stage you find yourself in.

To finishing strong,

Howard Kaufman

The post Succession Planning Strategy For Buffalo Grove Business Owners appeared first on Kaufman Financial Services, Ltd.

Ready for some yuletide cheer? Inflation might have hit its peak this year. So say the “experts.” 

That particular category of people hasn’t exactly covered itself with glory of late … so, we’ll see how that actually plays out for businesses in the coming months. 

What’s the price environment looking like for you within your industry right now? Curious to hear what you’d have to say.

We’d actually love to hear a broader picture about how your Buffalo Grove business is faring after the past couple of years of rising supply costs across the board. Do you need help examining where the dollars are going out and coming in? We can take a look with you to shore things up for success (and survival) in 2023.

Schedule a time with us here: 847-243-3600

And, while we’re at it, we can also talk about how to help lessen your 2022 tax bill. Let’s start right here with these year-end business tax moves you can make before December 31st…

Kaufman’s 8 “Right Now” Business Tax Moves
“Time is money.” – Ben Franklin

It’s been yet another … interesting, to say the least, year to run a small business. We’ve tried to be there for you every minute — and we’re here today to let you know that it’s really not too late to improve your business tax situation for 2022. 

Even now, you can make (or change) moves that you’ll thank us and yourself for when you file this year’s taxes for your company in 2023.  

8 business tax moves to make RIGHT NOW

1.) Employee bonuses. Amid the holiday exuberance, take another pass at those holiday bonuses before you hand them out. You want to show gratitude, sure, but are you certain those bonuses won’t eat up cash you’ll need in 2023? 

2.) Examine deductions. We urge you (and we’re happy to help) to review all your business activities for potential deductions in 2022. Use a fine-toothed comb and tune your eye to detail. Mention them to us — we make no guarantee, but you don’t want to leave any legit deduction on the table. 

Ditto for tax credits like for research and development or, specific to some industries, energy credits or FICA tip credits. If you have real estate, start looking into cost segregation or, down the road, a like-kind 1031 exchange. It might be tough to pull the needed documents together in the days left this year, but at least we can start thinking about these questions. 

3.) Equipment and Sec. 179. Buying equipment or machinery and putting it in service before this December 31 can get you a 2022 deduction under Sec. 179 (potentially a big one, too — but this isn’t always automatic and there can be conditions, so check with us). 

4.) Tax-smart use of credit cards. Deductions can be taken as of the day of the purchase for credit cards used by a single-member LLC, by a sole proprietor who files a Schedule C, and by a corporation that uses a card that is in the corporate name. 

If your Buffalo Grove business is a corporation and you are the personal owner of the credit card, the corporation has to reimburse you, and (for tax purposes) the deduction takes effect on the date of the reimbursement. Will that be before this December 31?  

5.) Accelerate or defer. The tail-end of a year brings up a time-honored tactic: accelerating expenses and spending while cutting back on billing to defer income into next year. Thoroughly review your expenses. Which ones can you speed up? Were you planning on large outlays in early 2023 anyway? If so, moving them up a month or so could be workable. This is especially effective if your business uses cash-basis accounting. 

(In fact, if you do use this accounting method and you can afford the money upfront, the IRS has a safe-harbor “12-month rule” that lets you deduct a prepaid future expense in the current year — but it can be tough to qualify for.) 

A simpler and more common tactic: Don’t bill until January (assuming most of your clients and customers don’t pay until they’re billed). This defers income into the next tax year. 

6.) Retirement and medical plans. It may not be too late to establish your company’s retirement plan. One of your quickest options might be a Simplified Employee Pension plan. You can deduct the lesser of your contributions (up to 61 grand per employee for 2022) or a quarter of the employee’s compensation. 

Regarding your company’s medical plan, make sure as 2022 runs out that you have health insurance reimbursements recorded properly for tax deductions or credits.

7.) Pandemic loans and credits. The IRS says that if your Paycheck Protection Program (PPP) was forgiven based on “misrepresentations or omissions,” you can’t exclude the amount from your taxable income. Think now about an amended return. Ditto if you have any doubts about your eligibility for the legendary Employee Retention Credit that you might have applied for. Call us, please. 

8.) Qualified Improvement Property. A QIP, if you have one, is a property eligible for special tax consideration. But to secure the QIP deduction in 2022, you need to place the property in service on or before December 31. Also, if you filed a 2019 return that you haven’t amended and that involves the QIP, you still have a little time … but let us know.

It’s never too late — or early — to get the most out of your business tax situation. Before your Buffalo Grove company heads into another great new year, let us help you…

Finish strong,

Howard Kaufman

+++

The post Kaufman’s 8 “Right Now” Business Tax Moves appeared first on Kaufman Financial Services, Ltd.

Time is counting down until the year is up and your tax impact opportunity window closes.

And even if this is the busiest (and perhaps most profitable) part of the year for your Buffalo Grove business, opening up a little space in your calendar to talk about some year-end tax moves is only going to mean good things for it. 

Let’s make sure you’re set up to get some potential last-minute tax savings. Grab a time with us here:
847-243-3600

Another thing you’re probably thinking about this time of year is how you’re going to express your gratitude to your awesome staff via a year-end bonus or some such. 

Of course, this isn’t an area where you shouldn’t merely be optimizing your bottom line. This is a chance to create some joy around your business – I suggest you take it.

But with our macroeconomic picture growing ever tighter, finding the right way to let your employees know you appreciate them without shelling out a crazy amount might call for some creativity. 

I’ve got some ideas for you on the year-end employee gifts front…

Employee Gifts: Some Ideas for Buffalo Grove Business Owners
“Feeling gratitude and not expressing it is like wrapping a present and not giving it.” – William Arthur Ward

That time of year again. Trouble for some small companies is, it’s that time in what may be yet another year of struggling on the bottom line. Still, you want to thank your employees for their hard work. How do you give EOY employee gifts without breaking the bank? 

There are many ways to say “thank you” quickly (even as 2022 runs out), even if you’re cash-strapped. 

Hint: Go for more bang than buck.

EOY Employee Gifts: Tax considerations

If you give gifts as part of doing business — including thank yous for employees — you may be able to deduct all or part of the cost, but no more than 25 dollars for business gifts to each person during your tax year. Incidental costs — engraving, decorating, packaging, mailing — are generally not included in that limit. 

Holiday gifts fall under de minimis benefits — what the IRS terms an item “considering its value and the frequency with which it is provided, is so small as to make accounting for it unreasonable or impractical.” (The IRS has previously ruled that individual items worth more than 100 dollars aren’t de minimis, just so you know.) 

Cash or cash equivalent items (gift cards and the like) are never excludable from income. Gift certificates that allow your employee to receive an item that’s minimal in value, provided infrequently, and is “administratively impractical to account for” may be excludable as a de minimis benefit, depending on facts and circumstances, IRS says. 

Whenever everybody’s favorite federal agency starts using phrases like “depending on facts and circumstances,” it’s only sensible to have a few questions. Feel free to check with us.

EOY Employee Gifts: What to give

Gift cards. These are first to mind these days, and they offer a lot of pluses for both giver and receiver as an appreciation gift: flexible amounts (easy on your bottom line), fast delivery (whether plastic or electronic), and available for a lot of products from electronics to gas to food to clothes. 

If you’re trying to say thanks while watching your budget, the thought really counts. If your staff size allows, try to get each person something they as an individual would like. Maybe one of your folks is always talking (when they should be working, but that’s a story for another time of year …) about the movie they just went to. Maybe another staffer shops at Target every single weekend. Tailoring a gift card to such folks is easy, and they’ll appreciate even a smaller gift if they think you devoted thought to it. 

Name brands might also buy you more appreciation than embossing. Is the expense of putting your company name on something really going to impress an employee more than a retail name they respect (Yeti tumblers and mugs, for instance, or a North Face beanie)? 

Work-related. Too often all of us fall back on a coffee mug with the company name. That can work of course, but what about comfort at work? Use your eyes and ears for a few days and see if somebody would like a blanket to keep at their desk. Or a recharging station, a lunch box or bag, a desk fan, or a smartphone pop socket. Do they eat lunch at their desk? How about a desktop vacuum cleaner? 

You can get many of these for little more than a $20 bill — and every time your folks ward off a chill or cool down after coming in from lunch, they’ll think of you. With fondness. And that’s one of the big points. (These gifts work for either remote or in-office situations, by the way.)

For the individual. Again, if staff size allows, think for a sec or ask a few questions discreetly of co-workers. Does your staffer love or despise candy, honey, chocolate, or cookies? Don’t leap at these choices just because they’re familiar. Does the worker embrace green living (stainless steel straws)? Spend a lot of time outdoors (sunscreen, lip balm, or touchscreen gloves)? Travel a lot (sleep mask, neck pillow, or packing cubes)? 

A last point: Give the gifts in a way that embarrasses no one. Maybe leave it on their desk with a nice wrap job and card when they’re not looking. Email them the electronic gift card on the weekend. 

A little effort can help make sure the delivery is part of the gift, discreet, and individual. After all, that doesn’t cost anything.

Maybe the employee gifts puzzle isn’t as much a money and tax matter as other questions, but we’re ready to advise on all your Buffalo Grove business needs.

In your corner,

Howard Kaufman

+++

The post Employee Gifts: Some Ideas for Buffalo Grove Business Owners appeared first on Kaufman Financial Services, Ltd.

This time of year means big things for Buffalo Grove businesses like yours… and big-red-bow-on-top opportunities thanks to the post-Thanksgiving, pre-Christmas buying euphoria. 

Early indicators are that this has been a tepid start to the consumer holiday season, but one consistent thing I’ve observed among my SMB clientele — nothing happens unless you do something to make it happen.

One thing that should also be on your radar: Year-end moves that will affect your 2022 tax positions. Whether it’s spending, saving, asset structure, etc … we only have one more month (or so) before the books close. 

After 12/31/22 … we’re mostly confined to “historical” work on your tax files.

Shall we talk about it?
847-243-3600

But leaving all of that aside, I wanted to help sort through the mucky aftermath of post-election results and offer a clearer picture of what lies ahead for your business as we face a new Congress in Capitol Hill.

So let’s dive in.

The New Congress and Your Buffalo Grove Business
“I have come to the conclusion that one useless man is called a disgrace, that two are called a law firm, and that three or more become a Congress.” – John Adams, 1776

The midterm elections are finally over. Now you face the challenge of doing business amid a new potential wave of tax changes — on top of such economic trends as inflation, economic change, and leftover pandemic problems like the supply chain. 

What to pay attention to first? 

Here are 7 takeaways for you regarding the new congress and their effect on your Buffalo Grove business.

Coopetition

#1 – The lights must stay on. A Republican-controlled House of Representatives and a Democratic-controlled Senate (and of course a Democratic White House, with its veto power) mean that most major tax and economic legislation will likely be logjammed through the coming months, at least until the next national election. 

Nevertheless, some things will have to be done in the new congress lame-duck session, such as appropriations to keep the government running (never a gimme anymore) and money for such outlays as national defense and disaster funding. Further out, both parties will probably have to set aside big parts of their agendas or somehow learn to work together.

Taxes

#2 – To repeal or delay? Some business tax breaks and conditions are on the block to be repealed or delayed — and could find their way into year-end extender deals. Among them: computation of Section 163(j) current-year business interest limitation; and phase out of bonus depreciation beginning on January 1. A possible repeal of a tax code change that requires amortization of research and development tax breaks could also pass if Republicans allow Democrats to expand the Child Tax Credit (see below). 

#3 – IRS funding and more agents. The federal Inflation Reduction Act passed last summer pumps 80 billion dollars to the Internal Revenue Service, which will use part of the money to upgrade technology and hire some 87,000 new agents. Republicans in the House have made an early vow to block that money for the IRS pending more organized oversight on spending. 

#4 – R&D tit for tat. A new congress split along party lines may get its first taste of wheel-dealing when Republicans push to reverse, forcing companies to amortize their tax break for research and development (R&D) over five years. If Democrats agree, Republicans might bend on expanding and extending the Child Tax Credit for families. 

Some Congressional leaders have said both should pass. 

Inflation and the economy

#5 – Cementing the TCJA. Republicans have brought legislation to the House to make the tax cuts, lower rates, and larger standard deductions of the Tax Cuts and Jobs Act of 2017 permanent. Republicans have also pledged in their “Commitment to America” to battle inflation (now running about 7.7%) and lower the cost of living in part through what they describe as a “pro-growth tax economy.” 

The Republicans’ TCJA Permanency Act keeps in place today’s tax rates for individuals and families and preserves the 20% deduction for small businesses. Proponents say that the Act provides tax certainty to facilitate costly investments in items with long productive lives. That in turn, Republicans claim, will help tame inflation by helping supply meet demand. 

Details remain sketchy right now, though, and President Biden would still have the power of veto with an override vote unlikely from a divided Congress. 

#6 – The economy at large. Congress (especially a new Congress) can’t directly do much about inflation; the Federal Reserve has the best tools, in the form of interest rates. About the most Congress can do is put more money in the pockets of Americans through tax breaks and stimulus payments. If one party was squarely in control, the path might be clearer. As it is, we are likely to see the push/pull of Democrats advocating stimulus and individual credits and Republicans pushing for tax cuts for business. 

Capitol Hill does continue to try to attack supply chain problems, most recently with the Ocean Shipping Reform Act of 2022. The new law has had questionable effectiveness so far, but at least it was bipartisan — so there’s hope Congress will do more for the supply chain.

Across the great divide

#7 – One bipartisan bright spot for the lame-duck session. The EARN Act, related to SECURE 2.0 and one of the flurry of bipartisan legislation aimed at retirement savings, would make several changes to employer-matching contributions to various retirement plans. You’d be able to match employee contributions on a Roth on an after-tax basis, for instance, or contribute more for SIMPLE IRAs and SIMPLE 401(k) plans, among other changes. It would also make it easier for part-time workers to participate in retirement plans. 

(Other changes would be an expanded saver’s credit for low and middle-income workers, easier withdrawal penalties, and a higher age for taking required minimum distributions). 

EARN (or something like it) stands an excellent chance of passing even this Congress.

Nothing ever stays the same for your business or your taxes. Just know that we’re always here to guide you through whatever comes trickling down from the new congress – or anywhere else.

In your corner,

Howard Kaufman

The post The New Congress and Your Buffalo Grove Business appeared first on Kaufman Financial Services, Ltd.