Thanks to a slowing economy, SBA loans have been growing in popularity. So much so The Daily Herald had a Featured article about them in the March 19th, 2023 Sunday Business Section.

​www.dailyherald.com/business/20230319/thanks-to-a-slowing-economy-sba-loans-have-been-growing-in-popularity

No matter what, you need to talk with someone, an expert that helps business owners daily! We advise you to talk with one of the contact at the bottom of this Matching Ideas with Resources Blog.

Typical Situation: Our client is looking to expand their business or perhaps make a business acquisition.  They might be looking to purchase equipment, inventory, or real estate.  Maybe they also need working capital to expand.  We are primarily looking to lend to businesses in underserved areas to create quality jobs

When you hear a business owner say: 
• “I would like to expand but I my bank won’t lend the full amount I need”
• “I just got declined for a loan from my bank to buy R/E, equipment, inventory, working capital”
• “I want to buy out my partner (or purchase a business) but can’t get financing”
• “My bank approved the equipment loan but they only gave me a 24 month term, I’m afraid of a payment that large.”

SBA (Small Business Administration) Bankers serve as a trusted banking solution. They Make $1MM-$5MM loans to small businesses.

How they Work: They use Government loan programs, to businesses that meet SBA guidelines. They are  able to do this by treating the building acquisition as simply an extension of their existing business, rather than a new acquisition.  

Matching Ideas with Resources:

The Daily Herald had an article in Sunday’s Newspaper about the importance of an Accountant or CPA in advising your business. You can imagine that we at GLM agree with this this. Having an outside look at your business and finances is very important to the growth and stability of your business.

About the Author:
Denice Gierach is an attorney, CPA, Northwestern University business master's graduate, and has owned several businesses including in real estate and manufacturing. She is the lead attorney at Gierach Law Firm in the Chicago area. With more than 30 years of experience, she has been a respected and sought-after resource for businesses looking to grow, sell, solve problems, and succeed long term.
Her insights across business areas gives a fuller lens to business issues and solutions, and helps businesses grow and succeed with less time spent on legal issues and other time-consuming problems
 
Here is a link to the Article:
​ https://www.dailyherald.com/business/20221204/the-importance-of-involving-your-cpa-in-your-business
​

The Tuesday after Thanksgiving marks Giving Tuesday when many people choose to make charitable donations. People making charitable donations for Giving Tuesday, or at any time during the year, should review whether their gift is tax-deductible.

Donations to charities may be deductible
Most contributions of cash or property made to a charitable organization are deductible as an itemized deduction on Schedule A, Form 1040, Itemized Deductions. Cash contributions include those made by check, credit card or debit card, as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization. Donations of property other than cash are generally deductible at their fair market value.

There are some contributions that aren’t tax deductible, including donations:

• Made to a supporting organization
• Intended to help establish or maintain a donor advised fund
• Carried forward from prior years
• Made to most private foundations
• Made to charitable remainder trusts
• Of time spent volunteering

Some things to do when a taxpayer is considering making charitable gifts include:

• Use the Interactive Tax Assistant to help determine if a charitable contribution is deductible.
• Get a written acknowledgement for any charitable contributions of $250 or more.
• Research charities they are considering donating to carefully.

Tax Exempt Organization Search tool
As people are deciding where to make their donations, the IRS has a tool that may help. Tax Exempt Organization Search on IRS.gov is a tool that allows users to search for charities. TEOS provides information about an organization's federal tax status and filings.

Things to know about the TEOS tool:

• Donors can use it to confirm an organization is tax-exempt and eligible to receive tax-deductible charitable contributions.
• Users can find out if an organization had its tax-exempt status revoked.
• TEOS does not list certain organizations that may be eligible to receive tax-deductible donations, including churches, organizations in a group ruling and governmental entities.
• TEOS lists organizations under the legal name or a "doing business as" name on file with the IRS. No separate listing of common or popular names is searchable.

​Qualified charitable distributions
Taxpayers age 70 ½ or older can make a qualified charitable distribution directly from their IRA, other than a SEP or SIMPLE IRA, to a qualified charitable organization. The maximum annual amount a taxpayer may exclude from income for a QCD is $100,000. A QCD may also count toward the taxpayer’s required minimum distribution for the year. Taxpayers should review Publication 590-B, Distributions from Individual Retirement Arrangements, for more information.

We recently met with Wendy Schulz, Preferred Funding Group based in West Dundee. They help to secure the funding you need to start or grow your business with help from their trusted team of Experts! Whether you’re looking to start a new business or looking to grow your business, a personal or business loan from PFG can make your plans into a reality.

Qualify for up to $500,000 today

FUNDING PROGRAMS

• 5 or 7 year Term Loans
• Business Credit Card Program
• Personal Credit Card Program

​TERM LOAN PROGRAM

• Rates range from 5.49%-14.99%
• No minimum length of time in business
• Fixed monthly payment
• No upfront fees
• Full liquidity Immediately
• Funding in 7-15 business days
• (Dependent on strength of personal credit)

REQUIREMENTS

• 680+ Personal Credit scores in all 3 bureaus
• 2 years personal tax returns showing $50,000 or more of taxable income

​BUSINESS CREDIT CARD PROGRAM

• 0% Interest for 6-12 months
• No minimum length of time in business
• Stated income
• No upfront fees
• Reports only to the business

REQUIREMENTS

• 700+ Personal Credit Scores on all 3 bureaus
• Established Business Entity

Apply today: ​https://preferredfundinggroup.wufoo.com/forms/q1b99q130o9718l/ 

Direct from Andrea Biwer, Executive Director of the Des Plaines Chamber of Commerce:

I am writing to inform you that the Source Grow Grant, designed to help small businesses who have been affected by the COVID-19 pandemic, application is NOW OPEN.
 
The Cook County Small Business Source Grow Grant provides capital integrated with business advising to small businesses, prioritizing historically excluded businesses – those owned by Black, Latino(a), other people of color, Women, Veterans, and Persons with a Disability – to close racial wealth and other opportunity gaps. http://cookcountysmallbiz.org/growgrant/ 
 
Awarded businesses will receive $10,000 each. The application will only be open from 10/3 – 10/31.
 
To apply for this grant, businesses will need the following:

• Photo ID
• 2019 Tax Returns
• W-9 (signed and dated by owner in 2022)

 
Eligibility Requirements:

• Must have been opened as of 2019
• Must be in Cook County
• Must have made at least $10,000 revenue in 2019
• Must have less than 19 full time employees

 
Our partners at the Berwyn Development Corporation will be leading outreach across west suburban Cook County. They will be hosting informational sessions at their office in Berwyn/ zoom in the coming weeks to share eligibility requirements and for a step-by-step walkthrough of the application.
 
At these sessions, you will also be able to schedule a one-on-one session with someone from their team to help with your application submission. 
 
Register to attend the informational session:
 
Tuesday, October 18th from 4 – 5 PM
 
Can’t attend a session?
Contact Paola at paolag@berwyn.net or (708) 749-6582 to schedule a one-on-one consultation.
 
If you have any questions, please contact Andrea via email (abiwer@dpchamber.com) or at 847-824-4200. If you are ready to apply, see below for links etc. you have until October 29, 2022 to apply.

From Lisa Gilbert, President, Schaumburg Business Association:

The second is through the Comcast Rise program to help small businesses owned by women and/or people of color.  Cook County is one of five locations in the nation participating.  They will be distributing $10,000 grants as well.  You can learn more at www.ComcastRISE.com

Many of the accounting entries are done behind the scenes in QuickBooks just by carrying out the day to day activities of your business. This week we cover 10- 20 great things about QuickBooks...

10. Keep Questions Organized - If you come across transactions that you are not sure how to handle don't let them stop you from reconciling and closing out your financials.  Use the QuickBooks ask my accountant code on your chart of accounts.  This will allow you to enter the transaction and reconcile all while keeping your questions organized in one spot. 

11. Journal Entries - Journal entries are sometimes necessary to fix issues or create year end entries per your CPA to match your tax return.  Although journal entries are getting more into the "accounting" end of things you should still be familiar with them. 

12. Accept Online Payments - You can turn on the Intuit payment network services which allows customers to pay your invoices easily online.  The best part is it only costs you $0.50 per transaction with no percentage of the invoice being charged as a fee.  So you could send a $50,000 invoice and only pay $0.50 to get that money sent directly to your checking account.  Hard to beat that price given the typical merchant processing fees.

13. Email Invoices and Statements - You should set up all invoices and statements to be emailed directly from QuickBooks.  This will help reduce the amount of time it takes for your customers to pay you, which will increase cash flow.  You can turn on the online payments as discussed in #12 above to help you get paid even faster.  

14. Payroll Management - You can process your payroll directly in QuickBooks or use an outsourced payroll service.  We typically recommend outsourcing your payroll to reduce your liability.  When you use an outsourced payroll it is important to record your outsourced payroll correctly in QuickBooks.  Many payroll companies even offer files that can import your outsourced payroll data into QuickBooks. 
 
15. QuickBooks Class Tracking - QuickBooks class tracking is one of the more powerful functions of the software that often is not utilized.  QuickBooks classes are a way to track your data in a way that is meaningful to your business.  Examples of QuickBooks classes are locations or departments.  I use QuickBooks classes to track sources of income so that I know the source of every penny that our business has ever made.    

16. Financial Reporting - One big mistake I see is small businesses not taking advantage of the reporting that is available in QuickBooks.  Small business financial reporting is a crucial piece of the bookkeeping process.  Without running and analyzing financial reports your bookkeeping system is not performing to its full capability. 

17. Owner Memorized Reports - I develop a custom set of reports for myself to run our business.  We also work with our clients to develop a set of reports that the owner finds particularly useful to run their business.  While many reports are available in QuickBooks it is nice to organize them all in one spot for easy access.  Under Reports/Memorized Reports you can find your memorized report list.  You should create a new list called 'owner reports' and memorize important reports to that list to make them easily accessible.

18. Custom Importing - If your financial institution does not offer import capabilities into QuickBooks you still have some options.  You can use a CSV converter to QuickBooks to make your data importable into QuickBooks.  Additionally you can create Intuit Importable Files also known as IIF files which import into QuickBooks.  You may need to seek a developer or programmer that can create IIF files.   

19. Web Apps - There are a whole lot of apps that work with QuickBooks that may help your business.  It is worth browsing the apps to see how they can help your business.  Be sure to get an app that is approved and supported by Intuit.  One QuickBooks app that we recently started using is Time Tracker by eBillity.  This app allows our employees to track and enter their time from their computer, mobile phone or tablet.  The administrator can then approve the time, which can then be set up to sync with your QuickBooks file. 

20. QuickBooks as a Tool - Lastly, I want to talk about using QuickBooks as a tool to run your small business.  Many small business owners look at bookkeeping as a hassle or as a means to filing their taxes.  I think some small business owners simply don't like bookkeeping, others are intimidated by it and some don't see the value in it.  If your bookkeeping system and QuickBooks file are set up properly and tailored to your specific needs they can help you run your business.  Your QuickBooks file should be a tool that you can use to aid you in making key business decisions.

QuickBooks can be a valuable tool to help you run your small business.  If you look at your bookkeeping as a hassle then you have not been shown how to properly use your bookkeeping system to aid you in making business decisions.  

Many of the accounting entries are done behind the scenes in QuickBooks just by carrying out the day to day activities of your business. Over the next 2 weeks, we cover 20 great things about QuickBooks...

1. Control Cash Flow - QuickBooks can be a great tool to help you manage your cash flow.  Instead of using your online bank balance you should keep your QuickBooks file updated regularly and understand how to use it to manage your cash flow.  By entering your financial transactions often and doing daily reconciliations in QuickBooks you will get a great handle on your cash flow.  The key is sorting your QuickBooks bank accounts by cleared status. 

2. Invoice Customers - I always like to train clients to create and send their own invoices in QuickBooks.  When you have a customer that wants to give you money for products or services that last thing you want to do is wait on sending them an invoice.  Learning how to properly invoice customers will decrease your accounts receivable and increase your cash flow.

3. Manage Bills and Accounts Payable - Keeping your vendors and suppliers happy is important as well.  You don't want to fall behind on your outstanding bills with vendors.  Using the enter bills and pay bills functions in QuickBooks is simple.  Entering the bills to your vendors with the correct terms and due dates will help you stay on top of keeping your vendors paid and happy.  Paying your bills directly through QuickBooks via online bill pay or printing checks will reduce unnecessary data entry and increase productivity. 

4. Manage Employee Time - You can enter employee time from the employees section of the home screen.  You can enter a single time event or use a weekly timesheet.  Tracking time in QuickBooks can help measure employee productivity and can prove to be valuable for job costing purposes.  

5. Customized Chart of Accounts - Your QuickBooks chart of accounts is all about your needs and should be customized to those specific needs.  I often see clients make their chart of accounts so complicated that the reports become meaningless.  Make sure your chart of accounts speaks to you and provides you with valuable information that you can use.  Don't worry too much about tailoring your chart of accounts to your taxes; it should be more geared towards helping you run your business. 

6. Memorized Transactions - You should use QuickBooks memorized transactions to automatically enter transactions that occur on a regular and predictable basis.  This can include invoices, bills, journal entries and payments.  The idea is to boost efficiency and have certain items be entered automatically into QuickBooks.  One example of a good use of a memorized transaction is a bill that you have set up to be automatically deducted from your checking account like your mortgage payment.  By memorizing a check you can have the payment automatically post to your checking account a certain number of days in advance.   
 
7. Always Reconciled - The most important thing you can do for your small business bookkeeping system is to make sure to reconcile QuickBooks on a consistent basis.  You should reconcile all of your applicable accounts not just your bank accounts.  Make sure to reconcile bank accounts, credit cards, loans, lines of credit and payroll liabilities.   

8. Printing Checks - Printing checks from QuickBooks is a great way to keep cash flow updated and increase your efficiency.  Since the check will not clear your bank until the payee deposits it you want to make sure to include it in your cash flow analysis.  Printing checks from QuickBooks will eliminate unnecessary data entry. 

9. Online Banking - You should set up your QuickBooks accounts for online banking download.  Many major financial institutions offer data downloads into QuickBooks.  This will reduce a lot of unnecessary data entry.

10-20 coming net week...

QuickBooks can be a valuable tool to help you run your small business.  If you look at your bookkeeping as a hassle then you have not been shown how to properly use your bookkeeping system to aid you in making business decisions.  

GLM has been working with business owners for many years. One of the biggest concerns most business have is: "Should I make them an employee or just in independent contractor?" This information is direct from the IRS:

A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors.
Here’s some information to help business owners avoid problems that can result from misclassifying workers.

An employee is generally considered anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker's services are performed. Independent contractors are normally people in an independent trade, business or profession in which they offer their services to the public.

Independent contractor vs. employee
Whether a worker is an independent contractor, or an employee depends on the relationship between the worker and the business. Generally, there are three categories to consider.

• Behavioral control − Does the company control or have the right to control what the worker does and how the worker does the job?
• Financial control − Does the business direct or control the financial and business aspects of the worker's job. Are the business aspects of the worker's job controlled by the payer? Things like how the worker is paid, are expenses reimbursed, who provides tools/supplies, etc.
• Relationship of the parties − Are there written contracts or employee type benefits such as pension plan, insurance, vacation pay? Will the relationship continue and is the work performed a key aspect of the business?

Misclassified worker
Misclassifying workers as independent contractors adversely affects employees because the employer's share of taxes is not paid, and the employee's share is not withheld. If a business misclassified an employee, the business can be held liable for employment taxes for that worker. Generally, an employer must withhold and pay income taxes, Social Security and Medicare taxes, as well as unemployment taxes. Workers who believe they have been improperly classified as independent contractors generally must receive a determination of worker status from the IRS. Then they can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report their share of uncollected social security and Medicare taxes due on their compensation.

Voluntary Classification Settlement Program
The Voluntary Classification Settlement Program is an optional program that provides businesses with an opportunity to reclassify their workers as employees for future employment tax purposes. This program offers partial relief from federal employment taxes for eligible businesses who agree to prospectively treat their workers as employees. Businesses must meet certain eligibility requirements and apply by filing Form 8952, Application for Voluntary Classification Settlement Program, and enter into a closing agreement with the IRS

Who is self-employed?
Generally, someone is self-employed if any of the following apply to them.

• They carry on a trade or business as a sole proprietor or an independent contractor.
• They are a member of a partnership that carries on a trade or business.
• They are otherwise in business for themselves, including a part-time business.

Self-employed individuals, including those who earn money from gig economy work, are generally required to file an tax return and make estimated quarterly tax payments. They also generally must pay self-employment tax which is social security and Medicare tax as well as income tax. These taxpayers may qualify for the home office deduction if they use part of a home for business

Our partner Human Interest, a highly rated, cost-friendly 401(k) provider, can help you integrate or start a 401(k) with any Payroll Company. 

With Human Interest, you’ll be able to:

• Seamlessly manage employee contributions and deductions from payroll through our integration with Human Interest
• Receive ongoing support, transparent pricing and zero transaction fees
• Save even more with tax credits like the SECURE Act that can be up to $15,000, with $5,000 per year for the first 3 years

Human Interest has helped many of my clients provide their employees an option, to help better prepare them in the future! Nancy Gilliam will be happy to connect you with her Account Executive and to find a time that works best for you, or please let me know a time that would work best for you in the meantime.

You can learn more here:

Section 1031 of the Internal Revenue Code allows the deferral of gain on the sale and subsequent purchase of real property used for business use or investment. An exchange is much like a typical sale followed by an acquisition within 180 days but with a few rules attached.

BENEFITS OF AN EXCHANGE
This often overlooked tax strategy can help you accomplish many short and long-term real estate objectives:

• Immediate tax deferral
• Ability to acquire real estate with pre-tax dollars
• Long-term appreciation on tax deferral
• Estate preservation as deferred gain may be forgiven upon death
• Less management responsibility
• Consolidation of properties
• Greater selling and buying power
• Increased income potential
• Relocation or expansion of business facilities
• Diversification of assets or geographic locations
• Conversion to personal use property after a period of qualified use
• Exit strategy for business owners

Learn More:
COMPLIMENTS OF:
​Connie Custer, Business Development
1031 CORP.
100 Springhouse Drive, Suite 203
Collegeville, PA 19426

Office: 610.792.4880 ext. 230
Cell: 610.724.5195
Email: connie@1031CORP.com
Website: www.1031CORP.com