Breakaway Bulletin: A business owner's job description: Problem solving and crisis management

Quick hits

Stat of the Month

Surprisingly, 1 in 3 businesses still don't have a website, yet over 25% of business is conducted online (and that's only counting shopping, not "check you out before calling" type visits). Source: Forbes

Tax Tip of the Month

We just cleared another 1099 season here at the firm, and by far the most stressful part for our clients is tracking down W-9s from vendors. If you pay anyone that's not an S or C corporation more than $600 a year, or expect to, do yourself a favor and make it a policy not to pay until you have a signed W-9 form. There's even a Zap for it.
Vendors aren't as motivated to do paperwork once the check is cut, but the IRS will actually require you to start pulling taxes if you continue to work with them. Give yourself some peace next January and collect those W-9s all year long.

Finance Tip of the Month

This finance tip is tax-related, but really boils down to good cash flow management. Don't scramble for cash to pay taxes. Open a dedicated tax account and transfer your estimated liability every month. Rule of thumb is 40% of profits, but obviously that's dependent on your personal and business tax situation. (Our tax planning services can help with this.)

A Friendly Reminder

NC businesses: Your annual report is due by 4/15 or the 15th day of the fourth month following the end of your fiscal year. You can file online here.

Essential Reads

Why "Extension" isn't a dirty word during tax season

Tax season is like flying the plane while building it. The code just gets more and more complex, and Congress likes to work on tax bills that have major impacts during tax season. No wonder most accounting & tax firms file automatic extensions on behalf of clients every year. It's the safety net you didn't know you needed.

Read more >

What the "Silver Tsunami" means for small business

All Boomers will be 65 by 2030, and that generation accounts for an estimated 2.3 million small businesses in the U.S. A lack of successor--either family or employees--means Baby Boomer small business owners are looking to exit, creating plenty of opportunity for young acquisition entrepreneurs. In this article, Live Oak Bank discusses the opportunities specifically for veterans.

Read more >

Quote of the Month

"As an entrepreneur, my job is problem-solving on a good day, and crisis management on a bad one. There is literally no such thing as a day in business with no problems at all." -- Andy Frisella, Entrepreneur and Business Owner

A Question for You

What big problems are you dealing with in your business right now? How can we help?

Until next month,

Your Red Bike Advisors Team

About Red Bike Advisors

We're on a mission to equip small business owners with finance and tax insights that create exponential value for their companies, customers, employees, and families. From financial reporting to forecasting, we take the confusion and scramble out of business finance and tax strategy and bring in clarity, growth, and peace of mind.

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