Sunday, March 25, 2007

Small Businesses Will Feel the Bite

Recently the Treasury Department has issued proposals to close the “tax gap” and unfortunately the small business owner and sole proprietor are going to feel the blow. The proposal would include more paperwork to be filed, and possibly more audits of small businesses and the self-employed. Specifically the proposals require:

Businesses to file Form 1099 for payments of $600 or more to corporations that provide services,

Businesses to check the Taxpayer Identification Number of their contractors with the IRS and withhold taxes if the TIN is not verifiable,

Credit card companies to report their annual payments to small businesses and sole proprietors.

Meanwhile the IRS Taxpayer Advocate feels that audits targeted at specific groups would close the tax gap. The main groups focused for audits would be the small business/self-employed that are paid in cash. Audits focused on Schedule C filers are proposed to be on the rise in the future also according to USA Today.

It is important for a small business owner and/or self employed individual to have the right controls in place to ensure that you financial records are kept in compliance with IRS regulations. Look out “Main Street” businesses; it appears we will be used as the bridge to close the tax gap.

Keeping your Business N Synergy

Brian N. Stovall

Sunday, March 18, 2007

The Entrepreneur Friendly Bank

One of the most important factors that keep a small business afloat is adequate cash flow and financing for the future. Recent small business surveys have listed these two factors as the most important concerns for small business owners in the new year. Maybe this year, there may be a friend of the small business owner than can assist with cash flow and financing needs….the community bank.

A community bank is typically a bank with local ties that have between 15 million to 30 million in capital and operates under a federal and state charter. These banks service the small end of the market, typically those companies with 100or fewer employees with annual revenues ranging from 3 – 50 million. These banks are a bit friendlier to the small business owner than their larger counterparts, so this may be an opportunity for a small business owner to improve their financial situation with a small community bank.

Be sure to search for community banks in your area to keep you Business N Synergy.

Brian N. Stovall

Sunday, March 11, 2007

Intuit’s Take on Technology and the Future

Recently there was an article in the New Your Times that featured Stephen Bennett, CEO of Intuit and his views of the future of business and technology. Bennett’s comments reveal some interesting assumptions regarding technology and how it will impact the way business is conducted in the future. Intuit purchased an online bank in an attempt to enter the bill pay market recently and this is definitely a sign that technology is an important part of the small business market’s growth. Bennett feels the online banking suite will create a “service suite that integrates all the data flow that makes it one place for small businesses to do online banking, bill payment and customer management.”

This is just one of the many changes taking place in the small business market. Intuit has taken the lead currently by introducing products that small business owners can use to make them more efficient and to have the information they need readily available. Other software makers are sure to follow. The time is now for your small businesses to at least test drive some of the new technologies. The new age of small business will be online, and NOT pen and paper. Be sure that your Business is N Synergy in the new age.

Brian N. Stovall

Sunday, March 04, 2007

2007 Tax Filing Season, Off To a Good Start???

The 2007 tax filing season is in high gear! If you haven’t already, you too will soon be testing the efficiency of the IRS this year. According to the IRS, the season is off to a good start, with no glitches during the first month of the e-filing season. The IRS however believes that it will not reach the 80% e-filing goal set for 2007.

The IRS continues to move toward a paperless filing process and from the most recent results; this may be the most efficient way for taxpayers to file their returns. Whether you are an individual or a business, use software or take your information to a professional, e-filing returns will be the filing procedure of the future. Software vendors have incorporated it into their tax preparation software for not only individuals, but accounting professionals too. And the IRS continues their push with the MeF program. The MeF (Modernized E-File) program also business owners to e-file their returns through the internet.

E-filing is here to stay it appears, so if you have not considered e-fling as part of your tax strategy, there is no better time than the present. Keeping your Business N Synergy.

Brian N. Stovall