As you wrap up your business books for the end of the calendar year, it’s time to prepare to file your 1099 forms. Beginning in 2017, the due date for submission to IRS has changed. In order to deter the filing of fraudulent tax returns, both W-2s and 1099-MISC for Box 7 Nonemployee Compensation are now due to not only the recipients by January 31, 2018, but also to IRS for 1099s and to the SSA for W-2s.
The other change is an increase in the penalties for not filing information returns, filing with incorrect EINs, or for filing late.
That means that now is the time to prepare for your information return filings.
Whether you're buying a house, car or a suitcase, there's one factor you're sure to take into account: capacity. When it comes to qualifying for a loan, bankers are no different. Capacity (or cash flow) is the second of the Five C's of Lending (learn about the first C here) and it is something a lender will review and analyze to determine if a business or individual has the ability to repay the loan in a reasonable and timely manner. In other words, they ask how much debt could your business could “hold” and still generate sufficient profit and cash flow to operate comfortably.
Though most businesses have a legitimate need for a line of credit, successful deployment of the line into a business requires familiarity with the business’s cash conversion cycle (CCC) and how it relates to the growth path the business is on. They also need to be well-versed in other influences, such as changes in collections or supplier terms. Failure to assess the CCC or manage its drivers can result in unmet expectations from within and outside the business.
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Learn how others do it. Download our guide to growth.
Is your business as profitable as it could be? Are you spending a reasonable amount considering how much you're bringing in? Could you be doing things better or more efficiently?
If you run a business, questions like these probably come to mind on a regular basis. With all the other responsibilities you're balancing, it's entirely possible for such thoughts to enter your head fleetingly and then get buried under everything else you have to do – but they shouldn't.
You would be surprised how many construction companies set aggressive goals for landing new projects, achieve their goals by winning many of those new projects, only to find that they grew themselves right into a cash crisis. They say "Let's go out and win some new and bigger projects. Everything will get better if we just increase the number and size of the projects we win."
Verne Harnish, in his book Scaling Up, says it beautifully: “Growth sucks cash – the first law of entrepreneurial gravity.”
The reality of business is that growth, especially rapid growth, is almost always a net user of cash. This is especially true in the early stages of a new project.
“An organization, no matter how well designed, is only as good as the people who live and work in it." -Dee Hock, author and businessman
Competitive advantage is about finding a “hole in the market,” something that other competitors would have trouble providing. If you have strong and observable business ethics and core values, you have a huge competitive advantage, because you are different from most others.
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The Austin Regional Manufacturing Association (ARMA) celebrated its two year anniversary in February. In that time, the organization has hosted dozens of events, including a Mayoral Debate, Golf Tournament, Manufacturing Day, and several manufacturing facility tours.
For decades, Warren Buffett has invested in companies with protective “moats” that are wide and deep.
Buffett’s reasoning is logical. Businesses with significant moats are able to withstand the shock of a 2008-type downturn, they require less trading, are more tax-efficient, and can be held for decades.
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Many municipalities face challenges when depositing funds due to the Texas Public Investment Act. To ensure that public funds remain safe, the Act places restrictions on how government entities invest their money. Cities, counties, school districts, municipal utility districts (MUD), special districts, river basin authorities, hospital districts, and emergency service districts (ESD) are all subject to these regulations.