biz2credit - accounting webinar presentation

Helping Small Businesses Grow…

Year-End Small Business Accounting Tips with

• Anita Campbell, founder and CEO, Small Business Trends • Alan Goodman, CPA • Rohit Arora, CEO, Biz2Credit • John Meyer, Director of Education, The Company Corporation

Tues, Dec. 10, 2013 3 PM (EST)

© 2012, Biz2Credit, Inc. All Rights Reserved - Proprietary and Confidential

Presenters

• Anita Campbell, Founder of Small Business Trends, Moderator

• Alan Goodman, CPA – Often overlooked business deductions – Tax advice for 2013 returns; key changes ahead in 2014 – Tips for expanding your CPA business

• Rohit Arora, CEO of Biz2Credit

– Top sources of funding in a tight credit marketplace – Impact of Obamacare and other factors on entrepreneurs' ability to secure financing – Ways CPAs and their client companies can increase revenues

• John Meyer, Director of Education for The Company Corporation (www.incorporate.com)

– Choosing the right business structure – Differences between forming a corporation (C-Corp or S-Corp) and an LLC – Compliance issues

http://www.incorporate.com/


Anita Campbell, Founder Small Business Trends

• Small Business Trends is an award-winning online publication for small business owners, entrepreneurs and people who interact with them.

• Small Business Trends is the premier source of information, breaking news and advice covering issues of key importance to small businesses

• Anita Campbell is one of the country’s leading experts on issues that impact small business ownership


Alan Goodman, CPA Our accounting firm is based on the belief that our customers' needs are of the utmost importance. Our entire team is committed to meeting those needs. As a result, a high percentage of our business is from repeat customers and referrals.

Visit http://alangoodmancpapc.vpweb.com

http://alangoodmancpapc.vpweb.com/


Challenges for Small Business Owners

• Tax codes are complicated

• Professional accountants are in-tune with ever changing tax laws


Tax Tips for 2013 Returns

• If you bought property, or equipment , or made capital improvements this year -- or are still planning to do so -- consider the following:

• Section 179 Deductions: Businesses can deduct up to $500,000 of qualified property purchases made in 2013. Unless Congress changes the law, the maximum Section 179 deduction next year will decrease to only $25,000. Thus, by acting before the end of this year, businesses can get an extra $475,000 deduction for buying qualified property.

• Bonus Depreciation. The Relief Act extended the 50% first-year bonus depreciation to eligible new assets placed in service in calendar-year 2013. To be eligible, the asset must be (1) qualified property, (2) acquired by the end of 2013, and (3) placed in service by Dec. 31, 2013.


Tax Tips for 2013 Returns

• Consider a small business retirement account such as a SEP-IRA, SIMPLE IRA, Individual 401(k) or other qualified retirement plan

– Contributions are tax-deductible and grow tax-deferred.

– If you open a qualified retirement account by Dec. 31, you have until the date you file next year to make 2013 contributions


Tax Deductions Expiring After 2013

• Tax-free distributions from individual retirement plans for charitable purposes

• Individuals who are age 70.5 years old or older can distribute funds from an individual retirement account directly to a charity, (known as a qualified charitable distribution.)

• Up to $100,000 per year may be treated as a tax-free qualified charitable distribution. Qualified charitable distributions satisfy the required minimum distribution rules.

• This special provision expires on Dec. 31, 2013



• Exclusion for qualified small business stock

• Investors can sell stock of qualified small businesses and exclude 100% of the gains from being included in income. This 100% exclusion expires at the end of 2013, after which only 50% of gains can be excluded. Small business stock is stock in a small C-corporation where the stock has been held for at least five years.



• Mass Transit Fringe Benefit Reduced

• In 2013, the tax-free exclusion for mass transit fringe benefits was set at $245 per month.

• In 2014, the amount for mass transit benefits eligible for tax-free treatment drops to $130 per month.

• This monthly limit applies to reimbursements for commuter vehicles and for mass transit passes.



• There are other deductions that end on Dec. 31, 2013.

• Check with your CPA to take advantage before January 1, 2014


John Meyer

• Director of Education for The Company Corporation (www.incorporate.com), which incorporates tens of thousands of new businesses annually and provides ongoing compliance services to 200,000 companies located throughout the U.S.

http://www.incorporate.com/


Choosing the Right Format

• Sole Proprietorships • Owner remains personally liable for lawsuits filed against the

business • No state filing required to form a sole proprietorship • Easy to form and operate • Owner reports business profit and loss on their personal tax return • Limited Liability Companies (LLCs) and Corporations (C-Corps) • Independent legal structures separate from their owners • Help separate your personal assets from your business debts • There are certain tax advantages of incorporation that CPAs such as

my co-presenter Allen Goodman can detail for you


Why Incorporate?

• Personal asset protection. Both corporations and LLCs allow owners to separate and protect their personal assets.

• Additional credibility and name protection. Adding "Inc." or "LLC" after your business name can add instant legitimacy and authority. Consumers, vendors, and partners frequently prefer to do business with an incorporated company.

• Perpetual existence. Corporations and LLCs can continue to exist even if ownership or management changes. Sole proprietorships and partnerships just end if an owner dies or leaves the business.


Why Incorporate?

• Tax flexibility. An LLC is taxed at the same rate as a sole

proprietorship while providing limited exposure to personal liability. Though profit and loss typically pass through an LLC and get reported on the personal income tax returns of owners, an LLC can also elect to be taxed as a corporation. – When an entrepreneur sets up a corporation, he or she is taxed

on both the individual and corporate levels. However, a corporation can avoid double taxation of corporate profits and dividends by electing Subchapter S tax status.

• Deductible expenses. Both corporations and LLCs may deduct

normal business expenses, including salaries, before they allocate income to owners.


Rohit Arora


Challenges Facing CPAs & Small Business Owners

• CPA bread-and-butter tax services are being threatened by self-service websites and software packages

• CPAs must expand financial services offerings to compete in marketplace

• Small business owners face high loan decline rates

• Small business owners need trusted financial advice on how to improve cash flow

• 80% of business loan applications are declined due to incomplete or incorrect paperwork


Biz2Credit and CPAs

• Biz2Credit’s CPA Program was created for Certified Public Accountants whose small business clients seek financing to improve their cash flow

• In today's digital world, the role of accountant has been forced to expand as business owners increasingly turn to self-service websites and accounting software packages to file their annual taxes

• Many small business owners still seek guidance from their accountants when it comes to managing their finances. Trust is something that you've worked hard to earn.


Biz2Credit and CPAs

• When clients turn to their accountants for advice on where to seek funding, that's where Biz2Credit comes in.

• Building a true partnership is about more than trust; it's about creating a mutually beneficial relationship and adding value for both parties. Biz2Credit pays a fee for every new client that you refer who goes on to secure a loan with one of our lending partners.


The fundamental problem in the market today

SMALL BUSINESS OWNERS

BANKS & OTHER LENDERS

LACK OF TRANSPARENCY

21

Where do I go for a loan?

What type of financing is best

for me?

Am I getting the best rate?

Process too cumbersome

How do I find good borrowers?

How risky are they?

How do I retain customers?

How do I manage declines?

Process too cumbersome

More than half of loan requests are rejected by banks

at present


SMALL BUSINESS OWNERS

BANKS & OTHER LENDERS

MARKETPLACE

online quicker simpler

lower risk

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How long does the process take?

• Borrowers create an account for free in just a few minutes!

• Biz2Credit presents multiple loan options

• Select the best product and finishloan application either online, or with the help of a Loan Specialist. Typically 2-3 weeks, if the applicant has all the necessary documentation

• No need to fill out tedious paper forms!


WEBINAR RECAP

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•Tax codes are complicated and are ever changing – Alan Goodman •CPAs – who specialize in small business returns – are abreast of expiring laws – Alan Goodman • Taking advantage of existing codes and knowing the updates can help SMBs save money – Alan Goodman •Why Incorporate? Personal asset protection – John Meyer • Increased credibility and name protection – John Meyer •Tax advantages (meet w/ your CPA for individual advice) – John Meyer


WEBINAR RECAP

25

•SMBs face high loan decline rates and often seek advice on how to improve cash flow from their accountants – Rohit Arora •By working with Biz2Credit, CPAs can help their clients obtain funding if they need it to pay their tax obligations – Rohit Arora •Biz2Credit can help SMBs complete their loan applications and get money at the best rates – Rohit Arora


Q&A

Thank you for joining us!

biz2credit - accounting webinar presentation

Documents

small business ownership

business deductions

cpa business rohit arora

ceo of biz2credit

confidential tax tips

confidential anita campbell

confidential alan goodman

biz2credit john meyer