For a business to succeed, it must generate profits but also operate with positive cash flow. For a business to be viable, cash flow is king. So having a high profit is great. But low cash flow results in a profitable business unable to pay its bills. There is a solution. Let’s look at a couple of areas of your business where you may be able to find a solution.
If you’re a small business owner, you’ve likely considered offering your employees a retirement plan. If you’re like most small business owners, you’ve likely run into a wall of confusing retirement plan options. Find out what you need to know to choose the right retirement plan for your small business.
I’m introduced to the owners and leaders of manufacturing and technology-based companies virtually every day and I find it interesting there’s such a large number of businesses that are unaware or unfamiliar with the R&D tax credit and the financial benefits it can provide their companies. In particular, federal and state R&D tax credits allow companies that develop products, processes and software to offset their income taxes by as much as 20% of the costs incurred in their development efforts.
There are different levels of financial support that a business will need over time. Do you need a Bookkeeper, Controller, or CFO? Which is the right resource for your business will depend on many factors. The first person to whom you should ask this question is your CPA. Your CPA should not be the one filling the role of Bookkeeper, Controller or CFO. Why?
When can you recall new tax laws being good news for manufacturing? U.S. manufacturers and technology companies are only beginning to realize that federal income tax provisions contained in the Protecting Americans from Tax Hikes (PATH) Act of 2015 are certainly worth being excited about. The PATH Act, which was signed into law in December 2015, made the R&D tax credit a permanent piece of the federal tax code and created additional benefits for small and startup companies.
Every business in America, whether they realize it or not, needs financing to fund growth strategies for their business. However, given the tough lending environment, small business financing is not always easy to find. There are the conventional sources such as banks and finance companies. There are also what are considered unconventional sources such as owner’s savings, friends and family or credit cards.
Without question, one of the major highlights of the recently enacted PATH Act of 2015 is the provision making the R&D Tax Credit permanent. The permanency of the credit provides the owners and leaders of manufacturing and technology companies the fiscal certainty necessary to make important decisions concerning their investments in innovation.
The R&D tax credit, which is regularly used by America’s largest companies, is vastly under-utilized by the nation’s small and mid-sized producers and innovation businesses. The reasons for not utilizing the research credit vary widely, though the principle causes relate to confusion about what expenses and activities qualify for the credit and the complexities associated with computing the credit.