Tag: small business

Small businesses and small business owners

11 Ways Small Business Owners Can Reduce Tax Preparation Stress

If you’re a small business owner, tax season can be one of the most stressful times of the year. It doesn’t have to be so challenging, though. We’ll go over 11 simple things you can do to breeze through filing this year and beyond below.

Why is Tax Season So Stressful for Small Business Owners?

Most small business owners are responsible for multiple aspects of their companies. You’re probably the manager, accountant, human resources department, and can add dozens of other titles to your name too. That makes it challenging to be organized throughout the year, to begin with, but as tax season approaches, you’ve got deadlines with potential bills and fees hanging over your head as well. If this sounds familiar, read on. We’ve got you covered.

Managing Tax Season Stress is Easy When You Set Yourself Up for Success

Meditation and self-care can only go so far when minimizing tax stresses as a small business owner. Knowing what to focus on and being prepared are keys.

1. Know Your Tax Filing Deadline

The IRS has multiple deadlines throughout the year, with certain types of entities being required to file tax returns by March 15. Sole proprietors get a small break and have the same April 15 deadline as individuals.

It’s worth noting that even though the IRS has extended the deadline in the past, the agency plans to stand firm on the traditional April 15 deadline this year, per CNBC reports. While you can file for an extension if you’re in a pinch, overlooking the date entirely can leave you with penalty fees and interest. Mark the date on your calendar now and set aside time to tackle the various preparation tasks well in advance.

2. Don’t Go it Alone, Hire an Accountant

Particularly with all the self-help tools available today, it can be tempting to save a few bucks by handling your own tax return. However, tax preparers can reduce your stress by providing an extra layer of assurance that you are less likely to get audited and have an issue down the line. Plus, tax professionals stay on top of all the latest changes, so you may wind up saving money overall by not missing out on potential tax deductions.

3. Separate Your Business and Personal Finances

Business owners often mingle their personal and business finances. It’s the simplest thing to do when you’re running the business alone and aren’t taking a standard paycheck or salary. However, experts caution against this practice. “As a business owner, establishing a distinct separation between your personal finances and your business finances is pivotal for protecting your own assets and credit,” the Small Business Administration (SBA) reports.

If you aren’t already tracking finances individually and using separate bank accounts, make the split now to reduce potential issues in the future. You can also use a credit card for business transactions to make splitting them from your personal expenses easier.

4. Keep Your Tax Information Organized

Following number three on this list will go a long way toward keeping your finances organized, but it’s not enough by itself. You should have a system in place to keep receipts organized throughout the year, so you aren’t forced to dig for papers and possibly overlook expenses you can write off when tax season approaches. To simplify things further, you may even want to invest in business finance software that can help you stay organized throughout the year to ensure you have accurate records.

5. Create a Tax Schedule for Other Quarterly Taxes

Medicare taxes, payroll taxes, Social Security, and more typically have quarterly due dates. At this stage, you may also owe state and federal taxes based on your anticipated annual earnings too. Meeting these deadlines helps ensure you stay on track and don’t wind up with a surprise bill when it’s time to pay your small business taxes.

6. Make Sure Your Business is Structured Properly

Rules are different for sole proprietorships, partnerships, LLCs (limited liability companies), and S corporations. A tax professional can walk you through the options and help identify which one is not only appropriate for your situation but will allow you to minimize your tax liabilities too.

7. Contribute to Your Retirement Account

One of the most recommended retirement account options for self-employed people is the SEP IRA. This employer-funded retirement account allows you to contribute nearly ten times more than you’d otherwise be able to contribute to a traditional IRA and reduce your business income tax in a big way. “But they also carry a contribution quirk,” explains CPA and former IRS agent Kemberley Washington for Forbes. “As an employer, you must contribute the same percentage of employees’ salaries to all those eligible for a SEP IRA.” With that in mind, you may want to go an alternate route if you have employees and don’t want to make everyone equitable shareholders.

8. Lower Your Tax & Maximize Your Refund

If you don’t already have a retirement account, setting up retirement plans for you and your team can help too. “Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for the ordinary and necessary costs of starting a SEP, SIMPLE IRA, or qualified plan (like a 401(k) plan.),” the IRS notes. “A tax credit reduces the amount of taxes you may owe on a dollar-for-dollar basis.”

You may also want to explore often-overlooked deductions, such as mileage, and expenses beyond employee wages, like insurance premiums. If you’re not sure what to look for or if you qualify for certain deductions, check with a tax professional.

9. Track Carryover Tax Deductions

It’s easy to forget what you’re entitled to from prior years, so pull out a copy of your income tax returns from last year to check. “Losses may either be recognized in the current year, carried back to the previous two years, or carried forward for up to a maximum of 20 years,” reminds Chron small business accounting expert Leigh Richards. You may also be able to deduct depreciation from prior years or have other carryovers.

10. Stay in Touch Year-Round with Your Tax Planning

The best way to make tax season stress-free is to keep up with tax planning throughout the year. Particularly if you’re working with a tax planner who can help you make strategic decisions, you may be able to lower your liabilities even more. However, being organized and prepared to file will make the tax filing process simpler regardless.

11. Improve Your Cash Flow for Easier Forecasting and Payments

Keeping up with quarterly payments can be a serious challenge if your cash flow fluctuates or you have slow-paying clients. Invoice factoring, or the process of selling your unpaid B2B invoices to a factoring company, can make it easier to forecast income and provide you with cash to cover expenses if your tax bill is more than you can comfortably cover. To find out if factoring is a good fit for your small business, start with a free quote from Charter Capital.

Disclaimer: The author of this article, Charter Capital, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. We do, however, hope this article provides you with ideas to discuss with your tax, legal and accounting advisors and that it is helpful in reducing your tax preparation stress.

September 9, 2020
No Better Time than the New Year to Prepare for Your Next Business Success

“If you don’t know where you are going, you’ll end up someplace else.” – Yogi Berra, former New York Yankees catcher

The confetti’s been swept up, the noisemakers have been put away, the toasts have all been made, the last auld lang syne’s faded, and, surprisingly, resolutions have already been broken. New Year’s Day is over. It’s time to get back to work.

Not the words you want to hear, of course. But there is an upside… do some smart business planning today and at this time next year, you could have a reason to celebrate even more.

The opening days of the year represent a great opportunity to lay out a road map for future success. A solid, well-founded plan with clear goals can ensure you’ll end up right where you want to be instead of someplace else wondering what went wrong.

Getting from Point A to B

A lot of businesses like to tell interviewees and new employees that there’s no such thing as a typical day at their company. Perhaps that’s true. But here’s something else that’s true: No successful business has ever been run in a random or haphazard manner. Oh, it may seem that way during a hectic time or an emergency. If you want to be a successful small business owner and entrepreneur, making and having a clearly defined set of goals and targets is a must.

As the New Year gets under way, look back at how the past year has gone. What have you accomplished? What is still in progress? What did you fail to achieve? Examine each of these scenarios carefully. It’s not only important to understand why you lost, but how you won as well. Each offers valuable lessons. When you lost, was it because of poor planning, bad execution, a target set too high, or events simply out of your control? What could you have done differently? Don’t overlook your wins. For those areas in which you were successful, what did you do right? Was it due to your preparation? A heroic effort by a part of your staff? A misstep by a competitor? Were you simply in the right place at the right time? It’s never a bad idea to learn not only from your mistakes, but from your successes as well. After all, you want to succeed again, right?

Once you’ve looked back, take an objective view ahead. How can you avoid last year’s setbacks? How can you turn a loss last year into a win the next? How can you improve upon last year’s triumphs? How can you push yourself and your staff to even greater heights?

It’s important to set attainable goals and reachable targets. Place the bar out of reach and you’re just setting you and your team up for disappointment. With reasonable goals in front, everyone knows it’s possible to not only work hard, but that management understands the best challenge is one that pushes and rewards as well. That makes for a better workplace with everyone working toward the same end.

It’s all about the bottom line

The primary business of a business is to make money, otherwise it wouldn’t be a business, it would be a charity, right? If the customer is king, then the bottom line is the emperor. How was your bottom line last year? If it was healthy, congratulations! If it was a little anemic, now’s the time to give it an infusion.

Ask yourself what steps can you take in the new year to either keep your success going in the months ahead or what decisions need to be made to ensure your bottom line is a dark black instead of a blazing red.

Perhaps an acquisition can grow your business? Maybe a new partner would give you some fresh blood or new ideas? Could a move to a bigger space help you accomplish more? Or would a reduction be more in order? Do you need more staff to satisfy growing sales? Better marketing to help you identify more prospects? Don’t be afraid to examine every component of your business. Look closely at how revenue is coming into your firm. Is it generating profit? Or being eaten up by debt or expenses? There’s no better time than when the calendar flips to determine the answers to these questions.

New products and services

One way to generate greater revenues is to open up new revenue streams. That means additional products and services. If you already have a product or service in the works, give them a news release on your website or social media trumpeting this fact. Get them looking ahead and pique their anticipation about what’s to come.

If you don’t have anything yet upcoming, get your team together and brainstorm about ways you can deliver more value to your market. You can also gather a group of your clients and ask them directly about what new products or services you can add to your portfolio to meet their needs. Facetime with your clients helps build rapport, trust and understanding.

Key performance indicators

One of the most important business questions of all is: How do you define success and failure? If you as the business owner don’t know, who else will?

Still being in business on January 1 isn’t the best definition of success. You need something a little more definitive than that. As you set your goals and target for the year ahead, be sure to list important milestones and indicators to meet along the way that show you’re either on the path to reach your ultimate goals or are in danger of falling short. Tie these to months or quarters and review regularly. Pulling up the spreadsheet in late November and discovering your production targets are far behind or your sales nowhere near where they need to be is, well, not a good idea.

If your key performance indicators show you’re behind, you’ll need either to increase your effort or adjust your targets downward. If indicators show that you are ahead of your goals, give yourself a big pat on the back for your hard work and keep up the pace.

With some thoughtful planning and careful consideration, you’ll have a clear idea of where you’re going in in the new year. You stand a better chance of getting where you want to be instead of somewhere else.

January 14, 2020
Improving Your Odds of Getting a Small Business Loan and Identifying Your Alternatives
For a bettor or a gambler, few things are as revered as a “sure thing.” That’s because few things are ever truly assured. OK, in horse racing, seeing Secretariat’s, Seattle Slew’s or Seabiscuit’s name in the lineup is never a bad sign. The same can be said for holding a royal flush in a high-stakes poker game. But how many times do these happen? In most endeavors, success is never a sure thing, which is why so many people want to stack the odds as much in their favor as possible before taking a chance. And even then, there’s still the possibility of walking away empty-handed.

A small business owner faces that dilemma each and every time they apply for a loan. Getting a small business loan is far from a sure thing. In fact, the odds are often greater of failure than success.

An estimated 30 percent of all businesses fail not because they had a bad idea or they lacked customers but because they ran out of money to keep the operation afloat. So, access to capital, be it to launch a small business or to grow it, is vital.

Small businesses can be capital hungry ventures

They borrow approximately $600 billion a year, a Small Business Administration study has found. About 40 percent of small business owners applied for a loan in 2017, according to the Federal Reserve. The average loan size was $633,000. However, more than half of borrowers applied for loans of $100,000 or less.

Banks and other traditional financial institutions typically reject far more small business loan applications than they approve. Alternative lenders are a slightly better bet with a little more than half approved. But even then, it’s not much more than a 50-50 proposition. Not the best of odds. Is there anything you can do before you apply for a loan to improve your chances? Can you swing the odds more in your favor? The answer is yes, and there are alternatives too.

Build Up Your Personal Credit Score and Business Credit Score

When applying for a loan, no matter what kind of loan, one of the first things a financial institution will look at is your credit history. Personal credit scores show the lender (especially traditional lenders such as banks) your ability to repay personal debts, such as credit cards, mortgages, and car loans. They also look at if you repay your bills on time, how often you have late payments, and the lines of credit you have taken in the past. If you are applying for a small business loan, financial institutions will look at your personal credit score to see how you manage debt.

More established businesses, or companies that have been around for longer, will have business credit scores

Your personal credit score is known as a FICO score and usually ranges from 300 to 850 (the higher your score, the better), while business credit scores usually range from 0 or 1 to 100. Credit bureaus like Experian, Equifax, and Dun & Bradstreet are able to provide you with one free credit report per year.

You can build your business credit by establishing trade lines and keeping your public records clean

To qualify for an SBA loan or a traditional bank loan, you’ll need excellent business credit and good personal credit. However, online lenders may be more lenient because your business’s cash flow and track record are typically considered more important than your credit score.
- Have a solid business plan: Lenders are not gamblers. They are risk-averse. It’s simply their nature. Your job is to convince them you’re a sure thing. How? By having a complete, thorough, and well-presented business plan, accompanied by a concise executive summary. Demonstrate your knowledge, foresight and planning skills. Show you’ve thought of every conceivable contingency as well as a way to overcome any potential issues. Let your passion shine through, but also display your sound judgment and fiduciary responsibility.
- Have some skin in the game: Don’t walk into the lender’s offices expecting them to finance your business 100 percent. Even with the best business plan in hand, you still represent a risk. The lender is going to want to see you’re willing to share at least some of that bet with your own money. The more equity you have in the business when asking for a loan, the greater your odds of approval. Anything less than a 25 percent stake jeopardizes your chances of success.
- Invest first in things that generate income: Lenders want to see a revenue stream that can be put back into the business to grow and expand towards continued success. What they don’t want to see are things that constantly take away from that revenue. One example is your business’s physical location. Do you plan to purchase or construct a building or rent space? If it’s the former, the bank will likely frown on that, considering those costs to be a drain on future revenues and your ability to repay the loan. Rent space in the beginning. You won’t be tied down and if trouble comes, you can easily downsize as needed. Plus, it will show the lender your first interest is generating income not expenses, something they want to see.
- Shop around: As we’ve already seen, small business loan approval rates vary greatly among different types of lenders. Generally, the bigger the lender, the less likely a small business is to get a loan, as larger banks often favor more established borrowers and stricter approval criteria. Focus more on smaller institutions. Not only do they have a higher approval rate, but they are also more likely to give you greater attention and service. If you’re considering an alternative lender, such as an online loan provider, first check out our previous article on the potential pitfalls of going this route.
Five Essential Tips to Enhance Your Small Business Loan Application

Securing a small business loan can feel like navigating a complex labyrinth, especially for first-time applicants. However, understanding what lenders are looking for and preparing accordingly can significantly increase your chances of approval. Here are five tips that can make the difference:
- Solidify Your Business Plan: A detailed and well-articulated business plan is not just a document; it’s a reflection of your foresight, strategy, and preparedness. It should outline your market analysis, financial management strategies, and a clear summary of your business’s goals and operations. Lenders want to see a viable path to profitability and growth, as it directly impacts your ability to repay the loan.
- Strengthen Your Credit Score: Both your personal and business credit scores are critical to your loan application. They indicate your repayment history and financial responsibility. Before applying, check your credit report for any inaccuracies and take steps to improve your credit score, such as reducing credit utilization and ensuring all bills are paid on time.
- Demonstrate Strong Cash Flow: Cash flow is king in the eyes of a lender. It’s the lifeline of your business and a key indicator of your ability to manage financial obligations. Prepare to show detailed financial statements and projections that illustrate a robust cash flow, sufficient not only to cover operational costs but also to comfortably repay the loan.
- Prepare Comprehensive Business Documents: Beyond the business plan, be ready with all necessary documentation that a lender may require. This includes financial statements, tax returns, legal documents, and a detailed plan on how the funds will be used to grow your business. Being thorough and organized can speed up the application process and increase your chances of getting approved.
- Explore Alternative Lenders and Loan Types: Don’t limit your search to traditional banks. Credit unions, online lenders, and SBA loans offer various terms and conditions that might be more suited to your business’s needs. Each lender has a different criterion and understanding these can help you apply to the right institution, thereby enhancing your chances of securing a loan.
By focusing on these five areas, small business owners can not only improve their odds of loan approval but also position their business for successful growth and expansion. Remember, preparation and understanding the lender’s perspective are key to navigating the loan application process successfully.

There’s another way to get same day funding

Engage an invoice factoring company to fund you the amount of your outstanding accounts receivable invoices upfront, giving you the cash you need today to run your business today, and eliminating the worry and hassle of waiting to collect payments from your customer accounts. You’re left free to run your business. Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans.

Factoring gives you the money you need when you need it with no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two. To learn more, simply call toll-free 1-877-960-1818 or email [email protected].
September 30, 2019
Invoice Factoring: A Better Way to Manage Your Accounts Receivable
A vexing problem almost every business faces, large or small, is accounts receivable. How can you get payments from your customers in a quick and timely manner? Is there a way to get them to pay faster? And if not, is there a way to get around the 30- or 60-day lag from when your invoice goes out and their payment comes in?

The answer is yes! Through “invoice factoring,” you can sell your accounts receivable to a third party (known in the business world as a “factor”). The factoring company will pay you immediately and collect the money themselves down the road. This innovative financing concept provides businesses of all sizes with much-needed flexibility in obtaining capital. Factoring costs are directly related to the business cycle, making it an attractive option for various industries, including factoring for service providers

Want to make the most of invoice factoring? Here are a few helpful tips to get you started:
- Understand what invoice factoring is and what it isn’t – Invoice factoring and invoice financing are two types of accounts receivable financing. Invoice financing is similar to invoice factoring in that it’s a way for businesses to get paid quickly on an invoice, rather than having to wait weeks or months before payment is officially due. However, invoice financing doesn’t involve selling invoices. Factoring can certainly help your business improve its short-term cash flow and enable you to get almost immediate money from outstanding invoices. However, factoring cannot, and will not, solve ongoing issues such as customers with bad credit or clients who exceed their credit limit. Yes, a factoring company can aid with some of these, such as performing customer credit checks on your behalf, but ultimately, it’s up to you to determine who is creditworthy, how much credit you should extend, and the terms and conditions of that credit. If you insist on extending credit beyond the amount a factoring company recommends, you are increasing your risk.
- Organization, organization, organization – Before you can even start to take advantage of invoice factoring, you have to know who owes you, how much they owe you, and when that bill is due. After all, if you don’t know the answers, how can you expect a third party to know? If you haven’t done so already, get your customer account files into shape before you engage a factoring company. Make sure all customer files have every piece of correspondence between you and the client, as well as all invoices and payments. Once you’ve done this, you’ll better understand the relationship’s history and, more importantly, you’ll have a clearer picture of the outstanding invoices you can send to a third-party factoring company. Plus, you’ll have an organized accounts receivable system, which is always a good thing.
- Be open, accurate, and include all liabilities – It’s natural as a business owner to be leery of disclosing delicate company information to strangers. However, to get the most bang for your factoring dollar, it’s best to be upfront about all liabilities, including the extent of your company’s indebtedness. By being open and honest, the factoring company can get a more accurate picture of your situation and can better devise a strategy for accounts receivable factoring.
If you’re a business owner navigating accounts receivable challenges, it’s important to recognize that different industries may require unique factoring solutions. For example, staffing factoring is specifically tailored to address the cash flow needs of staffing agencies, allowing them to meet payroll obligations without delay. By leveraging this industry-specific option, staffing companies can maintain steady operations and focus on growth, rather than worrying about gaps in cash flow caused by extended payment cycles. Equally, businesses in the oil and gas sector can leverage oilfield invoice factoring to address industry-specific challenges related to maintaining cash flow.

What are the benefits of invoice factoring?

By uncovering the benefits of invoice factoring, you’ll also learn how it can help grow your access to working capital without going into debt!

Invoice factoring is an alternative form of financing that is available to businesses that may not have an established banking record with a major lender. Banks and traditional lenders often operate on a line-based financing model based on what your business has already done and the assets you currently own. Invoice factoring, on the other hand, is an innovative way for your business to access the funds you have tied up in your accounts receivable.

Here are four major advantages of invoice financing:

1. Shift your cash flow into high gear

Applying for business loans or alternative financing options can take months to get approved. With invoicing factoring, your business can get much quicker access to cash if you have immediate financing needs.

2. Financial flexibility

If your business requires financial flexibility in terms of maintaining cash flow, then invoice factoring would be your best option. This way, invoices don’t have to be paid in full before there is money in the business account.

3. Higher probability of financial approval

When determining the chances of accessing funding – aspects such as your credit score, collateral, and financing history are often considered with traditional financing. However, these are not required for invoice factoring approvals. Your factoring partner is more focused on the payment history of the customer required to pay the invoice. This is important to understand the level of risk that would be taken in invoice factoring.

4. Save time and money – No collateral required

Normally, when a business applies for a loan or line of credit, the bank requires the business to have upfront collateral such as equipment, vehicles, buildings, inventory, or even intellectual property. However, with invoice factoring, a business doesn’t have to worry about showing that traditional collateral. This can save you enormous amounts of time and paperwork.

With these tips in hand, what can invoice factoring do for you? By employing a third-party factoring company, you’ll be able to now:
- Improve business cash flow
- Invest that money back into your business and into your staff
- Move resources away from collections into more useful and profitable positions, such as sales, marketing, or customer service
- With more reliable cash flow on your end, you’ll be current with your suppliers and may even be able to negotiate better terms.
Now that you have a few ideas on how to make the most from invoice factoring, how do you choose a factoring company? Here are a few questions to ask when considering employing an accounts receivable factoring company:
- How long have you been in business?
- What are your fees?
- Must I submit all invoices, or do I have a choice in which ones I send to you?
- Are you industry-specific? Do you have experience with companies like mine?
- May I see references?
Choosing an invoice factoring company is, like all business decisions, one that should be made only after careful consideration. It’s important that you find someone who understands your business and your unique situation. No two businesses are alike. Find a factoring company that not only understands you but one that can offer you a range of solutions to your cash flow problems. The future of your business could be riding on your choice, so be sure, as with any transaction, you arm yourself with the best information you can find in order to make an informed decision.

If you’re ready to grow your business by factoring your accounts receivables, Charter Capital can help. Establishing yourself and finding out your accounts receivable factoring rate is free, so you can get started on improving your cash flow right away. Request a complimentary invoice factoring rate quote now.
September 9, 2019
Learn to Ride the e-Commerce Wave… or Else

Amazon has unleashed an e-commerce tsunami that has caused waves of disruption in the retail industry. As a commercial vendor engaged in B2B sales, you may think you’re not affected by Amazon. After all, you sell widgets, not books. Think again.

Amazon has established a new mindset among shoppers. Yes, these are retail shoppers, not commercial ones. However, it’s only a matter of time before this e-commerce wave washes up on commercial B2B vendors’ shores. And that means you.

Very soon – if not already – one or more of your customers are going to be shopping online at Amazon and wonder why their business vendors don’t offer the same convenience, speed and delivery as Amazon. Will you be ready when that happens? Or perhaps it has happened and you’re wondering what to do next?

Related Article: It’s Small Companies, Not Big Business, That Create Jobs

Let’s Go Surfing Now, Everybody’s Shopping… and How!

The old business axiom of “location, location, location” is hopelessly obsolete. Buying local? That’s so 20th century. The entire world is a marketplace in 2018. A company may reside in Houston, but thanks to the Web and e-commerce, its customers may now be in Houston, Austin, Seattle, or even Europe or Australia. Success today no longer depends on your customers getting to you to buy your offerings, but on you getting your products and services to the customer after the purchase – the quicker the better.

No matter what commercial product or service you provide, e-commerce has almost certainly begun to alter the way you do business. Customers today have grown used to buying online, without ever having visited a traditional brick and mortar establishment, and having those items shipped to them either overnight or via express two-day mail. It doesn’t matter if these purchases are for personal or business use. Expectations have been set, and if a vendor does not offer an e-commerce option, it stands a good chance of losing a sale and, ultimately, a customer.

What if your business isn’t currently riding the crest of the e-commerce wave? What if you don’t offer your customers a way to buy online and receive purchases via next-day or rapid delivery? Are you simply sunk and out of luck?

Happily, the answer is no. You can still catch the tsunami. However, here are a few things to keep in mind about e-commerce before you throw up a website and expect revenue to flow in like the tide.

Consistent In-Person and Online Experiences are a Must

Your brick-and-mortar locations are well known for their great customer service and welcoming experience. Your online presence must reflect that same feel. Otherwise, you risk causing customer confusion, disappointment and even anger because they won’t be getting what they are used to when dealing with you in person.

You’ve no doubt spent a great deal of time and resources building your brand. You’ve gone the extra mile to ensure your customers know that when they step into your establishment with a need that you’re there to help them solve their problems and that their business is valuable to you. If they don’t get that same vibe from your online presence, you risk losing not only their future business, but your hard-won market reputation as well.

Giving Enough Product Information to Make a Sale

When a customer shops in a brick-and-mortar business, there’s someone around who can answer questions, provide guidance or even offer a demonstration. Not so online. That means it’s important to offer enough information to convince the prospect to buy, but not so much they are overwhelmed, become confused or frustrated.

Three things to consider are visuals, use of enticing marketing language and specifications. Always include a photo of the item. People won’t buy what they can’t see. As for language, spice it up. “Sell the sizzle” applies in person and online. Finally, as the potential buyer can’t touch or feel the item, be sure to give product specifications. Providing specs will often answer many initial, basic questions and head off potential return problems down the road.

Provide Excellent Customer Service – Before and After the Sale

No doubt you already provide great customer service at your brick-and-mortar location. Don’t overlook customer service when it comes to e-commerce. Just because you may never see or interact with your online customers in person doesn’t mean you can take their purchase or their satisfaction for granted.

A good, customer-friendly e-commerce site will have the company name prominently displayed and easy-to-find contact information. Furthermore, that contact information will have a phone number customers can call with questions, concerns or complaints. The site will also clearly state the days and hours that number is available. It will also contain an email address along with the expected response timeframe. Many companies (including Charter Capital) are using live chat features to provide instant e-help.

One big don’t… don’t simply have your customers fill out an online form without the option to receive live assistance. That’s not only a turn-off, it tells them their questions and concerns – as well as their business – aren’t that important to you.

A Wide Variety of Shipping and Delivery Options is Essential

In the entertainment world, a sure path to success is to “give the people what they want.” The same is true in the e-commerce arena when it comes to shipping and delivery.

Customers come to your website or app for two reasons: First, they believe you have a solution to their problem or can fill their need. And if they’re interested enough to make an online purchase with you, you’ve successfully convinced them you can do both. However, unlike a sale at a brick-and-mortar location, the job isn’t finished yet. Why not? Because second, they want that purchase as quickly (and cheaply) as possible. If you can’t provide that, then all your work to this point will have been for nothing.

Amazon has set the retail e-commerce bar for shipping and delivery, and it’s a high one. Buyers know that when they purchase from Amazon, they’ll get their shipments in two days. Not only that, they’ll get shipping at a good rate, or even receive free delivery. Maybe it’s unwarranted, but if they can get these things at Amazon, business and commercial buyers expect that speed and price from you as well. To them, it doesn’t matter if the item is a $10 novel or a $10,000 industrial widget.

You can probably match the two-day delivery without much difficulty, but will you be able match the rate? That’s where the problem starts for small businesses. Yes, you’ve developed a customer-friendly website, you’ve established top-notch customer service, and your product price beats the competition. Congratulations… but you still may miss the sale because your shipping rate is higher. Or because you don’t offer package tracking.

Fulfillment Coordination Can Make or Break Your e-Commerce Efforts

Finally, there’s fulfillment. You’ve sold your product to an eager customer at a price they could afford and at a satisfactory shipping rate and schedule. Game over, right? No. Now the truly hard stuff begins: fulfillment.

In a brick-and-mortar establishment, the customer picks up an item themselves. Any error is usually met with a smile or a shrug from them. In e-commerce, you send the item to the customer. If you send them the wrong item, or if you send the right item to the wrong address, all the work and good will you’ve built using the tips above sinks like lead.

Organization, training and constant vigilance are the hallmarks of accurate fulfillment. The delivered package is the last thing the customer sees from you, and nothing leaves a worse impression than bad fulfillment.

Now that you’re more familiar with what to do – and now also know some things not to do – get ready to make a few e-commerce waves of your own.

September 9, 2019
Bottom Line: Prepare Now for the Next Downturn

Not long ago, a well-known professional wrestler had a popular catchphrase he would shout out during TV promos. “That’s the bottom line, ‘cause Stone Cold Steve Austin said so!” This meant the audience could bank on what the hulking grappler had said would come true, usually to someone else’s grief. Stealing a phrase from Mr. Austin, what’s the “bottom line” on the current economy? And is there something coming that could cause small business owners grief?

Right now, as of mid-August 2019, the line looks encouraging. Unemployment stands at a low 3.7 percent. The latest small business confidence index has fallen slightly to 103.3, but still remains historically high. The annual inflation rate for the 12 months ending in June 2019 tallied a modest 1.6 percent. Even stocks continue to rise, with the current bull market now past its 10th anniversary, making it the longest on record. One small negative blip recently appeared when the Purchasing Managers Index fell to 51.2 in July, its lowest level in three years.

If there’s one thing certain about good times, it’s that they don’t last forever. Somewhere, sometime in the future a downturn in business or some other crisis will occur. As Austin would put it, “that’s the bottom line.” History has shown it time and again. Austin made a career out of sneaking up on unsuspecting opponents and applying his dreaded “Stone Cold Stunner” with devastating results. But unlike a clueless brawler, you don’t have to be caught by surprise. Here are a few heavyweight suggestions that may ensure that even when times do get tough, you’re still standing when the match bell rings.

Don’t Cut Advertising, Publicity and Marketing – It’s always cheaper to try to wrestle new sales from existing customers than to find new ones. As a result, many small business owners believe the first department to cut in a downturn is marketing. That belief can prove fatal. True, building upon and expanding existing client relationships is never bad policy, but not going after new customers is. Without new customers continually refreshing and growing the sales pipeline, an operation quickly stagnates and ultimately shrinks or even dies. A downturn is a great time to renew marketing, advertising and publicity. For one thing, your competition may be foolishly cutting back, leaving an opportunity for you to build market share at their expense. For another, customers may be using the downturn to search for new vendors and better deals. If you’ve cut back on or eliminated marketing, you may not find them nor they you.

Recession-Proof Your Personal Credit – Just as a homeowner prepares for winter by weatherproofing a house in the fall, wise small business owners use prosperous times to ensure their personal credit can withstand tough economic times. Small business loans are hard enough to get as is, with nearly 50 percent getting denied. Those loans are even tougher to secure in a recession, as banks keep money close and become risk averse. This means you may have to use your personal credit to keep your business afloat. Do what you can now to boost your credit rating and available credit lines.

Manage Inventory, Vendors and Debt – When you’re in a hole, the first step in getting out is to stop digging. In a downturn, excessive inventory, costly vendor contracts and excessive debt can tag team your business, making a bad situation even worse. As a recession begins, take steps to reduce inventory, renegotiate vendor contracts or seek out new ones, and pare down debt. These actions will turn your organization in to a lean, mean fighting machine able to better withstand a downturn.

Focus on What You Do Best – When times are good, businesses naturally expand into new areas and diversify their offerings outside their primary area of expertise. This is a good and healthy thing. But when times get bad, these extras may drag you down. Every business has a core competency that forms the basis of their business and sets them apart in the marketplace. Focus on this strength during a downturn. If you’re a widget maker that does event planning on the side, event planning probably distracts you and wastes resources better spent on the real center of your business and earnings.

Protect and Improve Cash Flow, the Lifeblood of Your Company – It’s no revelation that in tough economic times, access to money tightens. The best way to keep your business off the mat in a recession is to keep a healthy stream of cash coming in. This means, as mentioned in the first tip, to resist the urge to drop marketing efforts that identify new customers. It also means ensuring those who have done business with you pay you for your products and services in a timely manner. In an economic downturn, businesses will naturally try to delay paying expenses and invoices if possible to keep funds on hand. A 30-day invoice can quickly turn into a request for 60 or 90 days, greatly impacting your cash flow and harming your small business’ ability to function.

In a recession, one proven method to improve cash flow and protect your business is to engage the services of a factoring company. The factoring company can fund you the amount of your outstanding accounts receivable invoices upfront, giving you the cash you need today to run your business today, and eliminating the worry and hassle of slow pay collections. You’re left free to run your business.

Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans. Factoring gives you the money you need when you need it with no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two. To learn more, simply call toll-free 1-877-960-1818 or email [email protected].

August 15, 2019
Put Some Wind in Your Sails During the Slow Season

Mariners once dreaded sailing the seas around the Earth’s equator. Not for the heat or the sharks or the waves. Rather for the lack of wind. Sailing ships would often become stuck for days or weeks, unable to move due to the shortage of any breeze. The nautical term for this area is the doldrums, meaning windless waters.

Nowadays, the doldrums carry other meanings, as well. One of the most used is to denote a period of stagnation or inactivity. Like an ancient sailing ship leaving the trade winds, businesses also go through doldrums. Often these doldrums occur during a specific season and can be forecasted in advance.

For example, new home construction slows during the winter months as bad weather makes work difficult. Furnace repair contractors don’t get many service calls during the summer. The hospitality business grinds to a halt after Labor Day and the end of vacation season. Companies need to plan and budget accordingly to make it through these slower times until their next peak season rolls around.

Your business probably also has its own doldrums or slow season. For you it may be in the spring. Or perhaps in the summer, when customers and employees alike take off for some needed escape from work. No matter when your doldrums occur, you need to have a plan of action to properly deal with them and to make sure your sails are in tip-top shape when the trade winds return, and business takes off. Here are some quick tips to get you going:

Work on your business instead of for it – When sales are popping, you’re often too busy to take care of some basic house… well, make that business-keeping chores. Now that times have slowed, it’s the perfect opportunity to take care of many tasks you just had to put off. Such as…

Update your marketing plan – A good marketing plan never stands still. It’s always moving, dynamic and flexible. Look back over the past 12 months. What didn’t quite go as planned with your marketing plan and could use some tweaking or revamping? What went right and should be done again? And, what went totally wrong and needs to be sent to Davy Jones’ locker at the bottom of the sea?

Give your website a fresh face – Have you looked at your website lately? Your customers do. Is it a proper and energetic reflection of your company that engages customers and encourages them to do business with you? Or is it a reflection that you really don’t know much about modern marketing? Even worse, is it a reflection that the last time you updated your website it was in the age of dial-up modems? A static, never-changing website can give your customers the impression that nothing’s going on with your company. A new, dynamic design, on the other hand, tells your prospects you’re a company on the move, ever striving to improve your products, services and your ability to help them. There’s no better time than your doldrum period to ask yourself these questions and act to ensure your site best showcases your firm’s knowledge, expertise and solutions-oriented approach.

Reconnect with old clients – There’s so little time to talk and interact in this fast-paced world of the early 21st century. The doldrums are a great time to reconnect with those with whom you’ve lost touch. No, not Aunt Mabel. In this case, your old clients. Give them a call, or better, stop by their office to catch up. If they still do business with you, let them know how important they are and update them on any new offerings that could help them. If they’re no longer clients, call anyway. Let them know you appreciated their business in the past and that you were thinking of them. Update them on your company’s progress and see if there’s any chance to rekindle a business relationship. Don’t forget, it’s much cheaper to get old clients to either do more business with you or come back to the fold than it is to prospect for new business.

Get organized – Remember last tax season when it took you two days to find that important documentation? And remember how you swore it would never happen again… you were going to get organized next time around. Well, guess what? Now’s your chance to do that. Organize your office, files, marketing materials, supply cabinet, and whatever cluttered, disorganized, and frustrating thing that has driven you to distraction.

Efficiency is the mother of success – Closely related to the above tip, the doldrums allow you to not only make your operation more organized but efficient as well. Every operation, no matter how perfect at its start, has inefficiencies creep in over time. Your boat’s engine may purr as you glide out of the marina, but overlook the occasional necessary tune-up, and you have an engine guaranteed to leave you stranded somewhere. Examine your operation; Look at each step from the moment you meet a prospect to the making of a product or until you deliver the service. Examine your billing process and your follow-up. No matter how many steps you have in your company’s process, there’s a good chance you need at least a little tweaking at best, or at worst, a complete overhaul. Make productive use of your slow season to get back on course!

Help your bottom line – Your finances may need a boost during the doldrums as business drops. This can cause cash flow problems for small businesses. If revenues drop more than expected or you haven’t set aside sufficient funds to tide you over, your business could be in jeopardy. In slow seasons, many small business owners may turn to small business loans, cash advances, or line of credit in an attempt to get working capital needed to keep their business afloat. If your cash-inflow is not where it should be, you may not have the money you need to pay suppliers, cover payroll, perform any maintenance, or buy equipment.

There is an option that could put some wind in your sails during these doldrums. This convenient alternative to a traditional business loan is called invoice factoring. Invoice factoring allows you to “sell” your accounts receivable invoices to a third party lender (factoring company) for a discount fee known as a factoring fee. This third party pays you upfront for outstanding invoices, giving you the working capital you need today to run your business, and eliminating the worry and hassle of slow pay collections.

In comparison to invoice discounting or invoice financing services, where you will still need to do the debt collection, invoice factoring offers you a more convenient cash-flow solution. After you go through a quick and easy application process on an online platform, the factoring agency will perform credit checks on your clients (not on you, so your personal credit history is not a problem) to determine any risk involved. Once the service has been approved, the invoice finance provider will pay you a percentage of the invoice amount, and collect on the invoices for you. Giving you more time to perform your business operations. You’re left free to run your business.

Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans. Factoring gives you the money you need when you need it with no long-term obligations. You can also get cash quicker through invoice factoring – the money for your unpaid invoices is usually paid into your bank account within as little as one business day.

You may ask yourself, “Who can use invoice factoring?” Invoice factoring services are best suited to B2B or service-based businesses and SMEs, which is why it is often used by those in industries like manufacturing, real estate, consulting, and healthcare.

If you would like to learn more about how invoice factoring works, simply call toll-free 1-877-960-1818 or email [email protected].

June 12, 2019
Considering Online Funding? Don’t Get Played for a Sucker

Considering Online Funding : As a small business owner, no one needs to tell you that getting a loan from traditional banks can be a real crapshoot, whether it’s a business or a personal loan. Far more often than not, when a small business rolls the dice and asks for a loan, they get double sixes and walk away empty-handed. Nationally, banks reject small business loan applications 80 percent of the time, on average.

A new form of online funding has arisen in recent years. This source promises to be more willing to loan small businesses the money they need to start a company, hire employees, pay your employees’ next paychecks, expand operations, and buy or lease new equipment. Online funding/loan and cash advances have filled a big gap in the capital pipeline, but in several cases, the payout has not been worth the gamble. Many small businesses have been stuck with high-interest loans laden with hidden fees and sky-high monthly payments.

This isn’t to say there aren’t good online lending companies. There are those who are more lenient with their repayment terms. But as with anything on the Internet, there are a lot of unscrupulous operators online and they aren’t looking to help you or your business. Quite the opposite… they’re out to scam you. Like a crooked card dealer, they want to deal you a bad hand so they can steal your credit, your good name and anything else they can grab before you catch on that you’ve been had.

No one likes being played for a sucker, especially when you are just trying to handle your business’s financial needs. So, how can you protect your small business and even the odds so that, when you make an online funding/loan application or apply for a cash advance, you’re not really funding someone else’s scam?

Here are five things to keep vigilant for when investigating any online funding or cash advance company:

No contact information:

Before you do anything else, the first sign to look for to see if an online lender is legit is the simplest task to perform. If you can’t easily find the company’s address and telephone number on the website, that’s a very bad sign. When you do find the info, if the address is only a P.O. Box, leave. If there’s a physical address, look it up on Google Maps Street View feature. Is it an office? Or is it a home, apartment or worst of all, an empty field? If an office, how many other companies share that same address? Believe it or not, there are firms that lease the same office suite to dozens of companies so that they will have a physical address. No one is ever in that office, of course.

Closely related to that is the email address. A legitimate company will have its own email address that matches the firm’s URL. If the contact information is for a generic address, such as g-mail, y-mail, Hotmail or some other free email service, bail out.

Guaranteed loan:

This should be an obvious red flag. No legitimate lender would ever guarantee a loan before knowing anything about you. Read the fine print… this loan is sure to come with an interest rate in the stratosphere or have fees for nearly everything under the sun. Even worse, they may promise a guaranteed loan but leave you instead with a guaranteed nightmare when they steal your information. Save yourself the trouble. Walk away from any “deal” like this.

Too aggressive:

Who hasn’t bought a used car at some point in their life? If you’ve ever had a pushy salesperson, what was your instinct? To run, right? Same with online loans. If you’ve contacted the lender and that person seems pushy, wants you to make a quick decision, seems hesitant to answer more than a few questions, or gets angry when you ask for additional options, then you’re very likely dealing with someone out to pad their bank account, not yours. Take a pass.

Money upfront:

If you’re asked for money upfront to get a loan, flee immediately. No legitimate lender will ask for money upfront before approving a loan. When you pay money upfront, what’s very likely to happen is that money – and the lender – will quickly disappear. Don’t do it. Ever.

The best advice of all – if it sounds too good to be true, it probably is:

We saved the best one for last. Actually, this is the only one you really need, isn’t it? Like any other business, lenders need to make money on their services. As a small business owner, you certainly don’t begrudge anyone for making money. But if someone offers you a “deal” that sounds like a dream come true, you need to ask yourself is it really a dream, or a nightmare waiting to happen. Why would someone offer a loan that seems to offer all the benefit to you? They wouldn’t. Any business needs to make a return. Even unsecured loans, which don’t ask for collateral, still look at your creditworthiness (if you have a good credit history) to determine risk.

If you’re staring at a loan deal that sounds to good to be true, you can bet it is. The lender will get something in return – something you may not have counted on. For example, online lenders often express interest as “simple interest.” The truth is “simple interest” is anything but simple and the actual APR (the annual percentage rate) can often be four to eight times the amount stated. And, in some cases even more! Make sure that your terms are not expressed as simple interest, so you know your true cost of borrowing. This is not to say every “too good to be true” deal is a scam. Just like not every online lender that matches one of these tips is a scammer. But do you really want to take that chance? Move on while you can.

If you are considering an online loan or cash advance, do your due diligence. If something doesn’t seem right, if you aren’t comfortable, then that’s your intuition warning you of danger. Heed those warnings.

There is another, less-risky way to raise money for your small business. This option is called invoice factoring. Invoice factoring allows you to “sell” your accounts receivable invoices to a third party. This third party pays you upfront for outstanding invoices, giving you the cash you need today to run your business, and eliminating the worry and hassle of slow pay collections, leaving you free to run your business.

Invoice factoring is a convenient alternative to a traditional commercial bank loan or fee-laden online loans. Factoring gives you the money you need when you need it with a flexible term length and no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two. You also don’t need to worry about having excellent credit because factoring companies will look at your customers’ credit profiles rather than that of your business. A factoring company will also not require you to have a specific loan purpose: if you sell your invoices, you can spend the money on what your business needs, whether it be for payroll, equipment, or maintenance.

If you would like to learn more about how invoice factoring works, simply call toll-free 1-877-960-1818 or email [email protected]. You may find it to be the best hand you’ve been dealt in a long time.

May 21, 2019
Texas’ Strong Economy, Pro-Business Attitude Make It a Top State for Truckers

Keep on truckin’. That’s the message the Lone Star State sends over-the-road owner-operators looking to make it big in the transportation and logistics business.

In 2016, more than 3,000 trucking industry professionals throughout the U.S. were surveyed to determine the best and worst states to own and drive a truck. The survey revealed Tennessee as the nation’s best for truckers, with California “raking the leaves” at the back end of the convoy.

The survey factored several items to determine its rankings. These included cost of overnight parking, fees/regulations, if location in the U.S. mattered, and how friendly states were to drivers. Texas finished a solid fourth in the best state’s derby. Were there to be another survey, it’s likely the state could finish higher thanks to the state’s “put the hammer down” pro-business attitude and economy.

Texas benefits from a strong economic base that often booms when times are good and weathers slow times better than the rest of the nation. This creates and sustains demand for consumer and industrial goods and products, goods and products that must be transported over the road. Small trucking companies have plenty of opportunities to compete for these loads, even outfits new to the market. In addition, Texas is home to three of the nation’s largest cities and one of America’s biggest ports. It’s no surprise that Texas cities ranked among the Top 10 in several freight transportation categories in a 2018 trucking survey by DAT Solutions.

The Lone Star State also has a business-friendly agenda. This means fewer laws and regulations that add to costs, sap cash reserves and make doing business harder. These include complex labor and environmental laws that can be burdensome for trucking companies of all sizes, but smaller ones in particular.

In 2018, Texas won CNBC’s annual Top State for Business in America award. It was the fourth time Texas has won top prize in the award’s 12-year existence. Texas Gov. Greg Abbott explains:

“When given the freedom to aspire, Texans risk their own capital and invest in themselves and others by opening businesses large and small. And success is contagious. New business formation in Texas is at a five-year high. Start-ups are growing here right alongside Fortune 500 companies and more than 2.6 million small businesses. It’s no surprise that Texas is ranked by CEOs as the best state for doing business, now for the 14th year in a row. As one Texas entrepreneur puts it: ‘If you like big ideas … build your business in Texas.’”

Meanwhile, Texas placed third in a similar Forbes magazine survey of best states for business.

Texas’ low business taxes and lack of an income tax make it an attractive place to open a business of any size. It’s a top state in terms of access to the capital a business like a trucking outfit needs to expand and grow.

Texas is a big place with tens of thousands of miles of highways. The state has invested heavily in infrastructure and roads in both rural and urban areas. Better and less congested roads make a trucker’s job easier.

Whether you’re eastbound and down, westbound or any other direction, Texas should rank high on your list of places to locate a trucking firm.

Once you’ve set up shop in the Lone Star State, you may find you need to add employees, buy new equipment or improve your cash flow. If so, consider invoice factoring. Invoice factoring allows you to “sell” your accounts receivable invoices to a factoring company. The factoring company pays you upfront for outstanding invoices, giving you the cash you need today to run your business, and eliminating the worry and hassle of slow pay collections, leaving you free to run your business. Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans and risky crowdfunding. Each of these sources require a long-term contract. Factoring, however, gives you the money you need when you need it with no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two. If you would like to learn more about how invoice factoring works and how it can put your cash flow into the fast lane, simply call toll-free 1-877-960-1818 or email [email protected].

May 6, 2019
Here Comes the Tax Man – Six Tips to Get Ready for the Big Day

Should five per cent appear too small
Be thankful I don’t take it all
‘Cause I’m the taxman, yeah I’m the tax man
Tax Man (Beatles, 1966)

Few people celebrate April 15. No one sits around the table to carve turkeys and watch football. There aren’t any fireworks displays and ice cream socials. Santa Claus doesn’t come down a chimney and leave any presents.

Quite the opposite happens on April 15… that’s when the Tax Man comes and takes away.

We all know taxes are a necessary part of living in a free and democratic society. You don’t get something for nothing, not even in America. Someone has to pay for the roads, the national parks and the aircraft carriers. And that someone is you and me. But with apologies to the Beatles, the Tax Man doesn’t have to take it all. Just because taxes are necessary, that doesn’t mean there aren’t things you can do to lessen your bill when it comes due.

1) Organization Saves Time… and Often, Money

Here are six helpful tips you may want to consider when preparing your taxes. Of course, Charter Capital is not a tax service and we don’t give tax advice. Consult your tax attorney for information regarding your specific situation.

Believe it or not, throwing receipts and other important documents into a cluttered drawer or file folder and then forgetting about them until April 14 is not a good idea. A better one is to stay organized. Each time you have new receipts or documentation, carefully file them by topic that day rather than waiting for them to pile up. When your tax files are organized, it saves valuable time for the tax preparer (especially if that tax preparer is you). Organized files and complete documentation can also help you better take advantage of eligible tax incentives you may otherwise miss because you can’t find the needed receipts or papers. Finally, it can make tax preparation easier, faster and less frustrating, lessening the possibility of having to file an extension or having to pay late fees because you or your preparer couldn’t complete the task in time.

2) Pick the Right Entity for your Business

Just because you own and operate a small business doesn’t mean you can’t take advantage of an entity change. Big businesses aren’t the only ones with the fancy abbreviations at the end of their names. If you currently file as a sole proprietor, consider switching to an LLC. Doing so may enable you to eliminate some of the self-employment tax and several other benefits.

3) New, Larger Equipment Deductions May Cut Your Tax Bill

Recent tax law changes now offer bigger deductions for equipment purchases. Small businesses are now eligible for federal tax deductions of up to $1 million – nearly twice the previous amount. If you’ve purchased new or used equipment for your business and placed it into service before the end of the year, you may be entitled to this deduction. The new tax laws also offer two additional breaks for small businesses. One is a 100 percent bonus depreciation deduction for certain types of equipment bought and placed into service after Sep. 27, 2017. The other is a 40 percent bonus deduction for certain types of equipment purchased before Sep. 28, 2017 and put into service during 2018. To see if you qualify, check with your tax attorney or the IRS. Speaking of that…

4) Don’t Be Afraid to Ask the IRS for Help

Most people would understandably not be thrilled were an IRS agent come knocking on the door. But, believe it or not, the IRS does try to help taxpayers and offers many tax preparation tools of which you may not be aware. The agency has many self-help topics online here. The site also discusses many of the new tax laws and how they may affect your business here. It would certainly be worth a few moments of research to look over these webpages before starting your taxes. You may find information on deductions that could be of great benefit and savings.

5) Donate Unused Inventory – Clean Out the Warehouse and Cut Your Taxes

One often overlooked and easy to take advantage of deduction is to donate unsold and unused inventory. Donating inventory helps two groups at the same time. First, a charitable organization gets free items to help them in their mission. Second, you save money by no longer having to pay to store the items and you can get a tax break. Do note that donations of good worth more than $500 have stringent reporting rules you must follow.

6) Procrastination Never Pays Off – Don’t Wait to Start Your Taxes

If you’re the type of person who thinks you work best under a tight deadline, you may be doing yourself a disservice by waiting until the last minute to start preparing your taxes. Unless you use the EZ form (and who does that for a business), filling out tax forms takes time, patience and concentration. If you start late, you may learn to your horror you can’t find a needed document and may not find it on short notice. You also may be more prone to mistakes, such as mathematical errors to forgetting to take advantage of a tax benefit for which you qualify. Finally, you may not be able to finish in time, which could lead to late penalties. The best advice is to follow the Boy Scout motto – Be Prepared – and give yourself plenty of time to do the job… and do it right.

Usually on April 15, you’re the one giving. But for this tax season, here’s something just for you: a bonus tax tip to help you ensure you’re getting the maximum benefit for your buck.

7) Get a Handle on Your Cash Flow to Estimate Your Taxes Ahead of Time

One way to better prepare for taxes is to forecast your cash flow. Doing so allows to estimate taxes ahead of time and anticipate eligible deductions. Build a model of your accounts receivable and accounts payable. Factor in your annual budget and anticipated sales. This will help you not only at tax time, but in developing a forecast you may also find it easier to run your business so that it will grow and prosper.

A good way to improve your cash flow, whether at tax time or any time of the year, is invoice factoring. This method of cash flow recovery allows you to “sell” your accounts receivable invoices to a factoring company. This company pays you upfront for the outstanding invoices by giving you the cash you need today and eliminating the worry and hassle of slow paying collections. This leaves you free to run your business.

Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans and risky crowdfunding. Each of these sources require a long-term contract. Factoring, however, gives you the money you need when you need it with no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two.

If you would like to learn more about how invoice factoring works, simply call toll-free 1-877-960-1818 or email [email protected].

* Although we are pretty much experts in small business finance, Charter Capital does not provide tax or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax or legal advice. You should consult your own tax and legal advisors before engaging in any transaction.

April 10, 2019