Was your business profitable in 2020? Do you expect a large income tax bill? If so, this blog is for you!
We’ve got two things you can do—before the blessed end of 2020—which could save you some serious cash on current year business income taxes! While these are two different actions, they both happen to include the word bonus. And who doesn’t like a bonus? Especially during pandemic times like these.
The decision to exit your business is one of the most important and emotionally charged decisions you’ll ever make. Indeed, it’s a life-altering decision—both for your life and the lives of the people who work for you. It means stepping away from the company you’ve built, thought about, and toiled over for years. And it can change not just your day-to-day routine, but your entire conception of self.
Most importantly, exiting your business can leave you rich. I’m talking rich-rich. The filthy, stinking kind.
But in order to walk away with the wealth you deserve, you’ll have to strategize carefully and deliberately. Exit planning isn’t something you can put off and hope to figure out when the time comes. To maximize your exit, you need to anticipate and solve potential problems in advance.
Whether you intend to leave your company in a few months, years, or decades, here are a few practical exit planning questions to consider right now:
If you’re anything like us, you’re already thinking about what deductions you'll take come tax season. Sadly, one you might miss out on is a home office tax deduction in 2020, since the Tax Cuts and Jobs Act eliminated unreimbursed employee expenses for almost all W-2 workers in 2017. That means, from 2018 to 2026, employees cannot deduct home office expenses unless they are a member of four protected groups. Which is a bummer with so many of us setting up our new home offices thanks to COVID, right?
We're all pretty disappointed by this change. Deducting home office expenses and other business-related expenses was beloved. In 2015, those who itemize deductions did so to the tune of $96 billion in unreimbursed employee expenses.
Somehow, we’re coming up on the end of 2020. How is that possible, you ask? Only those experienced in time travel can answer that question.
With the end of the year—especially a year like 2020 that introduced the complicated and ever-changing Paycheck Protection Program (PPP) to hard-hurt business owners—come many loose ends to tie up before we stumble into 2021 and what’s promising to be one of the most complicated tax years ever.
If you were one of those business owners who received PPP funds, what comes next for PPP forgiveness and the tax impact is one loose end you don’t want to leave dangling. To avoid a shockingly huge tax bill, here are 5 questions you need to be asking your accountant now about your PPP loan.
Everyone is concerned about the shape (V, U, L, or K) of our nation’s economic recovery. Whether it’s V-shaped or K-shaped, the shape of your company’s recovery post-pandemic might depend on what is in the next government stimulus package for small and medium-sized businesses.
Keep reading for a brief update on the potential impact of stimulus proposals to the two main coronavirus emergency loan programs for small and medium-sized businesses (SMEs): the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP).
A CFO’s role has changed to include more responsibility over HR.
As finance has become crucial to your company’s strategic advantage in business, a CFO’s role and responsibilities have changed to include human resources.
CFO turnover this year has been a major hurdle for companies navigating an unpredictable COVID-19 world. Some companies are promoting from within to fill the finance chief seat but outsourcing a CFO instead of an internal hire is more than a stopgap measure—it is a strategic solution.
Many assume that promoting from within to fill the CFO seat will save precious time on onboarding and building trust within the company. Time spent in the fold is valuable, no doubt, but thinking this way puts a premium on how things have been done at your company versus how business needs to be done in the future.
Your next CFO should be an outsourced CFO because it is better for your business.
It probably won’t happen today or tomorrow, but at some point, you’ll leave your company. Ideally, you’ll walk away wealthy—or at least wealthier than you are right now—ready to dive into retirement, the launch of your next business, the beginning of your career as an investor, or whatever the next stage of your life holds.
It sounds like an easy win. You take $200,000 from an investor right when you need it, with minimal back-and-forth negotiation and no debt obligations or loss of equity in the present.
Sure, there are some strings attached. In exchange for their financing, the investor has agreed to some percentage of ownership in your company at an unspecified future date. But you don’t need to worry about that now—you just secured seed funding without giving up any control in your company or borrowing money you may not be able to pay back.
Portland
Paying Less Taxes Can be Like Totally Bonus
November 16, 2020 Posted by Celene Robert to Taxes, Business Advice, Startup Tips
Was your business profitable in 2020? Do you expect a large income tax bill? If so, this blog is for you!
We’ve got two things you can do—before the blessed end of 2020—which could save you some serious cash on current year business income taxes! While these are two different actions, they both happen to include the word bonus. And who doesn’t like a bonus? Especially during pandemic times like these.
7 Practical Questions to Ask Before You Exit Your Business
November 09, 2020 Posted by Celene Robert to Business Advice, Mergers & Acquisitions, Startup Tips
The decision to exit your business is one of the most important and emotionally charged decisions you’ll ever make. Indeed, it’s a life-altering decision—both for your life and the lives of the people who work for you. It means stepping away from the company you’ve built, thought about, and toiled over for years. And it can change not just your day-to-day routine, but your entire conception of self.
Most importantly, exiting your business can leave you rich. I’m talking rich-rich. The filthy, stinking kind.
But in order to walk away with the wealth you deserve, you’ll have to strategize carefully and deliberately. Exit planning isn’t something you can put off and hope to figure out when the time comes. To maximize your exit, you need to anticipate and solve potential problems in advance.
Whether you intend to leave your company in a few months, years, or decades, here are a few practical exit planning questions to consider right now:
Secrets of a Home Office Tax Deduction Revealed
November 04, 2020 Posted by Celene Robert to Taxes, Business Advice, Startup Tips, Coronavirus
If you’re anything like us, you’re already thinking about what deductions you'll take come tax season. Sadly, one you might miss out on is a home office tax deduction in 2020, since the Tax Cuts and Jobs Act eliminated unreimbursed employee expenses for almost all W-2 workers in 2017. That means, from 2018 to 2026, employees cannot deduct home office expenses unless they are a member of four protected groups. Which is a bummer with so many of us setting up our new home offices thanks to COVID, right?
We're all pretty disappointed by this change. Deducting home office expenses and other business-related expenses was beloved. In 2015, those who itemize deductions did so to the tune of $96 billion in unreimbursed employee expenses.
5 Questions To Ask Your Accountant About PPP Loan Forgiveness
November 03, 2020 Posted by Celene Robert to Business Advice, Funding, Loans, Coronavirus
Somehow, we’re coming up on the end of 2020. How is that possible, you ask? Only those experienced in time travel can answer that question.
With the end of the year—especially a year like 2020 that introduced the complicated and ever-changing Paycheck Protection Program (PPP) to hard-hurt business owners—come many loose ends to tie up before we stumble into 2021 and what’s promising to be one of the most complicated tax years ever.
If you were one of those business owners who received PPP funds, what comes next for PPP forgiveness and the tax impact is one loose end you don’t want to leave dangling. To avoid a shockingly huge tax bill, here are 5 questions you need to be asking your accountant now about your PPP loan.
What is the Shape of Your Business’s Recovery?
October 30, 2020 Posted by Celene Robert to Business Advice, Funding, Loans, Coronavirus
Everyone is concerned about the shape (V, U, L, or K) of our nation’s economic recovery. Whether it’s V-shaped or K-shaped, the shape of your company’s recovery post-pandemic might depend on what is in the next government stimulus package for small and medium-sized businesses.
Keep reading for a brief update on the potential impact of stimulus proposals to the two main coronavirus emergency loan programs for small and medium-sized businesses (SMEs): the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP).
What Does A CFO Know About People?
October 28, 2020 Posted by Celene Robert to Business Advice, Payroll, CFO Advisory
A CFO’s role has changed to include more responsibility over HR.
As finance has become crucial to your company’s strategic advantage in business, a CFO’s role and responsibilities have changed to include human resources.
Accounting Technology Trends You Need to Know About
October 27, 2020 Posted by Celene Robert to Business Advice, Industry News, Startup Tips
The global accounting software market is anticipated to reach USD $20,408 million by 2026 according to a recent Fortune Business Insights report.
What does the growth of the accounting technology market mean for your business? What trends in accounting tech should you be watching?
I got curious about what is trending in accounting tech, and, as always, I had to share what I found with you.
3 Not-So-Secret Reasons to Outsource Your Next CFO
October 26, 2020 Posted by Celene Robert to Business Advice, Budgeting, Coronavirus
CFO turnover this year has been a major hurdle for companies navigating an unpredictable COVID-19 world. Some companies are promoting from within to fill the finance chief seat but outsourcing a CFO instead of an internal hire is more than a stopgap measure—it is a strategic solution.
Many assume that promoting from within to fill the CFO seat will save precious time on onboarding and building trust within the company. Time spent in the fold is valuable, no doubt, but thinking this way puts a premium on how things have been done at your company versus how business needs to be done in the future.
Your next CFO should be an outsourced CFO because it is better for your business.
Exit Planning: The Art and Science of Valuations
September 15, 2020 Posted by Celene Robert to Business Advice, Mergers & Acquisitions, Startup Tips
It probably won’t happen today or tomorrow, but at some point, you’ll leave your company. Ideally, you’ll walk away wealthy—or at least wealthier than you are right now—ready to dive into retirement, the launch of your next business, the beginning of your career as an investor, or whatever the next stage of your life holds.
But exits don’t always happen the way we hope and dream they will. There are unavoidable crises, downturns, and other economic realities to contend with. Companies fail; in fact, fewer than half of small businesses in the US survive beyond a decade.
What You Gain and Lose by Using SAFE Notes
August 24, 2020 Posted by Celene Robert to Investment, Business Advice, Funding, Startup Tips
It sounds like an easy win. You take $200,000 from an investor right when you need it, with minimal back-and-forth negotiation and no debt obligations or loss of equity in the present.
Sure, there are some strings attached. In exchange for their financing, the investor has agreed to some percentage of ownership in your company at an unspecified future date. But you don’t need to worry about that now—you just secured seed funding without giving up any control in your company or borrowing money you may not be able to pay back.