Recordkeeping is an important part of running a small business. In fact, keeping good records helps business owners make sure their business stays successful.
Here are some things small business owners should remember about recordkeeping:

• Good records will help business owners:
  • Monitor the progress of their business
  • Prepare financial statements
  • Identify income sources
  • Keep track of expenses
  • Prepare tax returns and support items reported on tax returns
• Small business owners may choose any recordkeeping system that fits their business. They should choose one that clearly shows income and expenses. Except in a few cases, the law does not require special kinds of records.
• How long an owner should keep a document depends on several factors. These factors include the action, expense and event recorded in the document. The IRS generally suggests taxpayers keep records for three years.
• A good recordkeeping system includes a summary of all business transactions. Businesses usually record these transactions in books called journals and ledgers, which business owners can buy at an office supply store, or keep them electronically. All requirements that apply to hard copy books and records also apply to electronic business records.
• The responsibility to validate information on tax returns is known as the burden of proof. Small business owners must be able to prove expenses to deduct them.
• Business owners should keep all records of employment taxes for at least four years.
• Businesses that keep paper records should keep them in a secure location, preferably under lock and key, such as a desk drawer or a safe. 
• Businesses that keep records electronically on a computer should always have an electronic back-up, in case the hard drive crashes.

 wTypical Situation: A manufacturing company has surplus or idle machinery that is not is use and therefore not making them any revenue. Or they are looking to expand operations and are in need of equipment. They can save tens of thousands buying quality used equipment that is ready to go versus brand new equipment that may take months to get.
 
When you hear a business owner say:

• “I have stuff taking up space in my facility
• “I need some new equipment to meet demands.”
• “What is my equipment worth?”

 
The Consultant offers a free comprehensive assessment of your current equipment. How much it is worth, and what type of demand or market there is for it. They can also help you find the manufacturing machinery you need.
 
How they Work: They have customized programs to offer you unique, proactive approaches to maximizing return on your company’s surplus, idle or soon to be idle assets. They have 55+ years of experience and use that to expertly market your assets to a worldwide audience. By combining knowledgeable staff with hyper-aggressive, targeted marketing, they are able to find buyers who are willing and able to pay top dollar for your used assets.
 
Matching Ideas with Resources:  www.perfectionglobal.com ​

​New tax law allows small businesses to expense more, expands bonus depreciation
The Internal Revenue Service reminds small business taxpayers that changes to the tax law mean they can immediately expense more of the cost of certain business property. Many are now able to write off most depreciable assets in the year they are placed into service.
The Tax Cuts and Jobs Act (TCJA), passed in December 2017, made tax law changes that will affect virtually every business and individual in 2018, 2019 and the years ahead. Among those for business owners are tax rate changes for pass-through entities, changes to the cash accounting method for some, limits on certain deductions and more.

Section 179 expensing changes
A taxpayer may elect to expense all or part of the cost of any Section 179 property and deduct it in the year the property is placed in service. The new law increased the maximum deduction from $500,000 to $1 million. It also increased the phase-out threshold from $2 million to $2.5 million. These changes apply to property placed in service in taxable years beginning after Dec. 31, 2017. For most businesses, this means the 2018 return they file next year.
Section 179 property includes business equipment and machinery, office equipment, livestock and, if elected, qualified real property. The TCJA also modifies the definition of qualified real property to allow the taxpayer to elect to include certain improvements made to nonresidential real property. See New rules and limitations for depreciation and expensing under the Tax Cuts and Jobs Act for more information.

New 100 percent, first-year ‘bonus’ depreciation
The 100 percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify. The law also allows expensing for certain film, television, and live theatrical productions, and used qualified property with certain restrictions.
The deduction applies to business property acquired after Sept. 27, 2017, and placed in service after Sept. 27, 2017, and before Jan. 1, 2023. In general, the bonus depreciation percentage is reduced for property placed in service after 2022. See the proposed regulations for more details.
Taxpayers may elect out of the additional first-year depreciation for the taxable year the property is placed in service. If the election is made, it applies to all qualified property that is in the same class of property and placed in service by the taxpayer in the same taxable year. The instructions for Form 4562, Depreciation and Amortization, provide details.

Business owners can refer to the Tax Reform Provisions that Affect Businesses page for updates.

More resources:

• Publication 535, Business Expenses
• Publication 946, How to Depreciate Property
• Additional First Year Depreciation Deduction (Bonus) FAQs
• Tax Cuts and Jobs Act: A Comparison for Businesses

Typical Situation: Our client is growing and are unsure if they are legally complaint with employees. They feel they have been "winging it" in the area of HR, for too long and want to formalize processes. Or simply, they have many questions about employee issues and need answers we cannot provide (Legally and we just don’t know)
 
When you hear a business owner say:
 

• “I need to fire this person, but I don’t want to get sued”
• “There are so many laws changing, and I don’t know if our policies and practices are compliant.”
• “We’re having a hard time finding and retaining qualified candidates.”
• “We don’t need a full-time HR professional, but we need occasional help with employee relations issues.”

 
HR Source Provides

• HR Hotline: With unlimited access to the HR Hotline, members can talk to HR experts and employment law attorneys any time they have a question or concern.
• Benchmarking Surveys: Keep your organization competitive with the market’s most robust and timely data on wages, salaries, polices, benefits and executive compensation.
• Newsletter Updates: HR Source’s weekly newsletter keeps employers current on HR compliance issues and best practices.
• Training and Education: HR Source offers training programs focused on HR best practices, employment law compliance, leadership development and more.

 
How they Work
HR Source is a not-for-profit employers' association serving more than 1,200 companies and organizations. They provide human resources and legal support, publish compensation and benefits surveys, conduct HR and supervisory training, and more.
 
Matching Ideas with Resources:

Typical Situation: Our client’s Card processing fees have increase over the years. The may have outstanding invoices that would be paid quicker if they took credit cards.
 
When you hear a business owner say:
·         “I don’t understand the charges from my current credit card processing company.”
·         “It is taking too long for me to receive payment on my invoices.”
·         “I have been receiving chargebacks because I am not EMV compliant and my equipment does not take chip cards.”
·         “I want to upgrade my credit card processing equipment but I’m not sure what is the best fit.”
·         “I am opening a new business and I need to accept credit card payments.”
 
Merchant Services assist businesses with taking secure electronic payments (credit cards, checks, online payments). They find ways to streamline operations, reduce cost, improve cash flow, and provide excellent reporting. There are a variety of solutions including online payments, payment terminals, invoicing software, and POS systems.
 
How they Work They will ask questions about how a business operates currently and struggles they may be having with expenses, cash flow, reporting, marketing, customer loyalty, etc. They then take these findings to customize a tailored recommendation for the business. All new accounts are checked for accuracy, assisted with installation and training, and receive 24/7 support.

Matching Ideas with Resources:​

Step 1) Begin- Give us your accounting documents.

• Bank Statements, Receivables, Payables, Inventory, etc.

Step 2) Accounting–  We process your information, reconcile and file.

Step 3) Statements– We prepare the Financial Statements.

• Balance Sheets, Income Statements, Ledgers

Step 4) investigation– Accountant Review of Financials.

• Tax Planning- Proactive planning can potentially minimize your tax burden.

Step 5) Consulting-  Business Strategist Review.

• Analysis of Goals, Operations, Marketing, Trends,

Step 1) Begin Again- Meet With You and Discuss Findings.

• Regular Accountability through Timely, Accurate Financial Reporting

 

Thursday, July 18, 2019    10am- Noon

​If you're brand new to QuickBooks or a novice, then it is a perfect class for you. If you've been using QuickBooks for less than 2 years, you'll most certainly learn lots of interesting tips, tricks, and workarounds to help you be more effective. This class is perfectly suited for business owners, spouses of business owners, office receptionists, secretaries, office managers, sales and administrative professionals, bookkeepers and anyone who uses QuickBooks as part of their business.

You don't need any prior experience in QuickBooks or accounting. This is designed for people who are trying to decide if QuickBooks are for them and their business, people new to QuickBooks or have been using it for a short period of time. You don't need a computer as this class is not hands on. We've learned that people are able to learn so much more when they're focused on listening to the instructor.
​
The workshop will be held in the conference room in the Lower Level of our building:

300 N. Martingale Rd.,
Lower Level Room 80
Schaumburg, IL 60173
​
If you don't own a copy or subscription, no problem. Learn if it is right for your business and if it is, you can buy at half price though GLM.

As a follow up to a blog post here a couple of weeks ago (Click here):

Illinois Secure Choice will be sending notifications to employers, who have more than 25 employees eligible for unemployment for any 30 day period, in batches between now and the end of August/beginning of September.  All Illinois employers must either have their own retirement plan or the must register for Illinois Secure Choice by 11/1/19 if they have more than 25 employees.  If an employer has their own retirement plan they would need to prove that to Illinois Secure Choice to be exempted from the program.  If they start Illinois Secure Choice and later decide they’d rather have their own retirement plan, they would need to prove that the plan is in place to be allowed to withdraw from the program.
The notification letters to employers will include an access code to register online.  Once that registration is complete the clock starts on the program for that employer.  Employers have until November 1st to begin the program, so if they don’t want to start early they should delay registering until October. 
Any employee who is over 18 and is employed 30 days or more must be registered by their employer.  When employees are registered they are automatically opted in for a 5% contribution to the retirement plan and they have 30 days to change that before it goes into effect.  Employees will be sent information packets that include instructions on creating their online account as soon as they are registered.  Employers won’t get a copy so they can’t help employees other than to direct them to Illinois Secure Choice’s employee line 855-650-6914.
Employers will transmit payroll and contribution data with each payroll and the state will withdraw it from their bank account.  They will also need to regularly update the employee list with Illinois Secure Choice.

Thursday, July 18, 2019    10am- Noon

​If you're brand new to QuickBooks or a novice, then it is a perfect class for you. If you've been using QuickBooks for less than 2 years, you'll most certainly learn lots of interesting tips, tricks, and workarounds to help you be more effective. This class is perfectly suited for business owners, spouses of business owners, office receptionists, secretaries, office managers, sales and administrative professionals, bookkeepers and anyone who uses QuickBooks as part of their business.

You don't need any prior experience in QuickBooks or accounting. This is designed for people who are trying to decide if QuickBooks are for them and their business, people new to QuickBooks or have been using it for a short period of time. You don't need a computer as this class is not hands on. We've learned that people are able to learn so much more when they're focused on listening to the instructor.
​
The workshop will be held in the conference room in the Lower Level of our building:

300 N. Martingale Rd.,
Lower Level Room 80
Schaumburg, IL 60173
​
If you don't own a copy or subscription, no problem. Learn if it is right for your business and if it is, you can buy at half price though GLM.

Any business that has been in business for more than 2 years with 25 or more employees in Illinois will need to facilitate the Illinois Secure Choice program for its employees. Illinois is in the process of considering appropriate enforcement actions should such actions be needed to enforce the mandate. 

Unless –
An employer-sponsored retirement plan includes a plan qualified under Internal Revenue Code sections 401(a) (including a 401(k) plan), qualified annuity plan under section 403(a), tax-sheltered annuity plan under section 403(b), Simplified Employee Pension plan under section 408(k), a SIMPLE IRA plan under section 408(p) or governmental deferred compensation plan under section 457(b). It does not include payroll deduction IRAs.
 
Employers with fewer than 25 employees are exempt and do not need to participate in the Program.
“Employee” means any individual who is 18 years of age or older, is employed by an Employer, and who has Wages that are allocable to Illinois during a calendar year under the provisions of Section 304(a) (2)(B) of the Illinois Income Tax Act. An Employee includes both part-time and full-time employees.
“Employer” means a person or entity engaged in a business, industry, profession, trade, or other enterprise in Illinois, whether for profit or not for profit, that (i) has at no time during the previous calendar year employed fewer than 25 employees in Illinois, (ii) has been in business at least 2 y

• An employer employing 100 to 499 employees: 7/1/2019
• An employer employing 25 to 99 employees: 11/1/2019

 
Automatic enrollment means that following notification, employers will enroll eligible employees in Illinois Secure Choice unless employees have elected to opt out of the program. It is a Roth IRA and The default savings rate is 5% of gross pay
 
There are no employer fees, and employers are not required to contribute to the program.
 
There is an ongoing fee which is paid as a percent of your assets under management. This fee for each investment option is approximately 0.75% of assets per year ($0.75 for every $100 saved), and it pays for the administration of the program as well as the operating expenses charged by the underlying investment funds in which the program’s portfolios are invested. The fee is computed daily and netted from the assets in an investment option. Investment returns are credited to saver accounts ‘net of’ this cost.

The standard account option for savers will be a Roth IRA. The income limits for Roth IRA savers are set by the federal government. For 2019, the limits are $137,000 for a single tax filer and $203,000 for married taxpayers filing jointly. Beginning in 2019, Illinois Secure Choice will offer a traditional IRA account as an electable choice.