Restaurant Finance Company

10/31/2021

Preferably over a beer....

02/06/2015

Small Business Taxes 2015: Everything You Need to Know

Ashley Smith, Business News Daily Contributor


Following the most wonderful time of the year is a season that strikes fear in the hearts of many small business owners: tax time.

Shelling out a substantial percentage of the year's income is stressful enough, but tax season also brings with it a great deal of complexity and confusion. Tax laws are constantly changing and being revised, and it can be difficult for small business owners to keep up. And what adds even more stress to tax filing is that even innocent mistakes or oversights can lead to big penalties.

In preparation for the April 15 tax deadline, Business News Daily consulted small business tax experts to find out what business owners should be paying attention to now. Some of these issues involve recent tax changes, while others are issues small businesses should be watching for the future.

Tax extenders

Two important tax breaks for small business have been extended. They are Section 179 and bonus depreciation. Section 179 allows businesses to deduct the full price of any qualifying equipment or software purchased or leased during the year. The tax-extension bill continues the $500,000 maximum deduction for new and used equipment that was purchased in 2014. Bonus depreciation allows business owners to depreciate 50 percent of the cost of new equipment purchased in 2014. The two tax incentives can be used together.

Although the act's passage was a relief for business owners who purchased equipment in 2014, many others had to scramble to make equipment purchases in the final two weeks of the year or missed out on purchases while waiting for Congress, said Miguel Farra, chairman of the tax and accounting department at public accounting firm Morrison, Brown, Argiz & Farra LLC.

"These are great tax incentives," Farra said. "If everyone knew about them during the course of the year, they could have acted."

Also, because the incentives were extended only through the end of 2014, small business owners have no way to know whether these purchases will apply to business purchases made in 2015 until much later this year, said Dennis Brager, of Los Angeles-based Brager Tax Law Group, which specializes in helping companies that are in tax trouble.

Brager advised business clients to buy the equipment they need this year without waiting to find out if the tax breaks will be extended again.

"I always tell my clients to make sure the tax tail isn't wagging the dog," he said. "It's great to save on taxes, but you shouldn't be making decisions based solely on taxes. If you need new equipment, then spend the money. And if the tax savings come along, that's a bonus."

Other notable tax breaks that were extended include the research credit, energy production tax credits, and a deduction for local and state sales tax.

The Affordable Care Act

The Affordable Care Act (ACA) added an estimated 2,400 pages to the U.S. tax code, further complicating the tax landscape for businesses of all sizes. The most notable issue for many businesses is that they could face tax penalties for failing to provide health insurance to employees or for failing to report to the IRS what type of coverage they have provided for employees.

As of Jan. 1, 2015, businesses with 100 or more employees must provide health insurance to 70 percent or more of their full-time equivalent employees, or they'll face a tax penalty of up to $2,000 per employee, said Janemarie Mulvey, former chief economist for the U.S. Small Business Administration's Office of Advocacy. Mulvey, who has published a reference guide for small businesses called "Health Reform: What Small Businesses Need to Know Now!" said that beginning Jan. 1, 2016, businesses with 59 to 99 employees will be required to offer health insurance.

Businesses should also understand the reporting requirements that come along with ACA, Mulvey said. ACA requires employers to report the cost of the health coverage they provided on each employee's W-2 form. A breakdown of what the employer and the employee each paid is required in Box 12 of the form. Failing to report this information could lead to fines of $200 per employee, Mulvey said. Even though the deadline for reporting those figures is not until Feb. 28, 2016, she said, employers should start keeping track of health coverage costs now.

"Because the IRS is now the gatekeeper for insurance coverage, they are going to start collecting info from employers about what kind of insurance they provided," she said. "It's going to be a big regulatory nightmare."

Farra agreed that the ACA insurance and reporting requirements could be burdensome to small businesses. He recommended consulting an accountant or insurance expert now to make sure the coverage you provide meets the minimal essential coverage. In many cases, he said, a skilled insurance agent can also help businesses determine whether it is a better financial decision to provide insurance to employees or just pay the tax penalty.

The New Republican Congress

Republicans now control both the Senate and the House, and that could have an impact on tax reform in 2015, said Zach Olson, founder and CEO of Tax Alli, which provides tax accounting software and services for small businesses. Sen. Orrin Hatch, the new chairman of the Senate Finance Committee, recently released a lengthy report related to tax reform and has said he believes there is "real momentum" for the U.S. tax code to be overhauled this year. If Congress does take up tax reform in 2015, Olson said, almost everything will be on the table. Small business owners should follow news on this closely to find out how that reform might impact their tax burden, he said.

Taxation of online sales

The Marketplace Fairness Act stalled in the 2014 session of Congress, but it is expected to be addressed again in 2015, Olson said. The legislation attempts to level the playing field between online merchants and brick-and-mortar stores by allowing states to require online sellers that gross more than $1 million per year to collect and pay the state sales tax. Not surprisingly, the move is supported by brick-and-mortar stores but faces major opposition from online retailers.

Tax Tips for Small Businesses

Just because tax law can be complicated doesn't mean you have to let yourself get overwhelmed. Here are some tips on how to manage your taxes year-round.

Think about taxes all year long. Small business owners should not treat taxes as a once-a-year event, Olson said. Rather, tax planning should be a year-round activity. Waiting until the last minute makes tax preparation more complicated, and it limits your money-saving options.

Hire a pro. A knowledgeable tax attorney or accountant is well worth the expense, experts say. Tax laws are complex, and they're difficult for many busy small business owners to w**d through. A professional can identify tax breaks and deductions you might otherwise miss.

Be aware. Even with the help of a skilled professional, it is the job of a small business owner to keep up with news related to laws. Read the business papers and keep up with Congress' work on tax laws, said Brager, who is also a former IRS trial attorney.

Don't make assumptions. Tax planning, to some extent, is a gamble, Farra said. Although historically, Congress has always passed the tax-extender bill at the last minute, there are no guarantees. Never make business decisions assuming that tax breaks will pass.

01/06/2015

It’s time for small business owners to develop a plan to maximize their marketing efforts in the New Year. What will 2015 bring for small business owners? Here are 10 trends to keep an eye on as you develop your marketing plan.

1. Social media will continue to propel consumer spending. In 2014, both Twitter and Facebook began testing a new feature that will make it easy for users to buy products and services in just a few clicks. Both social media networks rolled out “buy” buttons, which appear alongside status updates and tweets, and give users the ability to make purchases without having to leave the network. In 2015, expect Twitter and Facebook to drive consumer spending in a major way. One huge advantage to the “buy” button for small businesses is the ability to attach concrete revenue metrics to social media messages.

2. Your friends influence your wallet. As your peers post about the latest products or services they bought, it’s sometimes hard not to be swayed. In 2015, expect your customers to be increasingly influenced by their peers’ purchasing habits. Pay attention to millennials — those born between 1981 and 2000 — on social media. According to a Harris Interactive poll conducted earlier this year, 68 percent of them were at least somewhat likely to purchase after seeing a friend’s post about a product or service.

3. New social media networks will rise, and others will fall. 2014 gave rise to a number of new and innovative social networks — including Yik Yak, an app that allows users to anonymously create and see posts within a 1.5-mile radius, and Ello, an ad-free social network that doesn’t sell your private information to third parties. Then there is Tsu, another social network that promises users a cut of its ad revenue based on how popular their posts are. These social networks presumably have risen to fix the perceived problems of major social networks like Facebook and Twitter including privacy and pervasive advertising. But will these social networks be around for the long haul? Time will tell.

4. Advertising on Facebook and Twitter will become an essential part of your marketing mix. As a small business owner, you may not be advertising on Facebook or Twitter yet. But in 2015, you may want to reconsider. Facebook continues to aggressively limit the number of posts your fans can see on your page. So the demand for promoted posts and ads will continue to grow. As with anything, increased demand will necessitate increased pricing. Facebook ad pricing already has gone up 10 percent since 2013. In 2015, expect this trend to continue. Advertising on Twitter will become a “must” for small business owners as they embrace the social network’s new advertising fee structure, which allows companies to pay for performance instead of paying for retweets, app installs and clicks.

5. Image-based social media will influence buying habits. Using images to influence consumer purchasing behavior is nothing new. By leveraging image-based social media networks like Instagram, which boasts over 200 million users, small businesses will be able to use compelling pictures and video to showcase their products and services. Pay particular attention to Instagram because the social network recently rolled out in-feed video advertising, which gives companies the opportunity to pay for 15-second video ads based on targeted metrics like age, gender and geographic location.

6. Publishing on LinkedIn will become more popular. If you haven’t yet tried LinkedIn’s publishing platform, explore it before the year’s end. In 2015, LinkedIn will continue to dominate among the business set. LinkedIn has quickly become a strong publishing resource populated with excellent content on business trends, insights and careers. You can use LinkedIn’s publishing platform to express your thoughts on these topics or to build your brand.

7. Content marketing will remain an important tool to spread the word about your business. Content marketing is a great way to reach your customers without aggressively selling to them. But it requires work. In 2015, take the time to explore it to determine how might benefit your business.

8. Social media will continue to drive customer service in 2015. Many major brands have been taken to task by irate customers on social media. What this means is that your customers have latitude to say what they want about your products and services. They can influence whether your product sells successfully. This is where social listening comes in. You need to track what’s being said about your brand on social media and respond to customer questions and issues in a timely manner.

9. Marketing to millennials will be essential. If you aren’t specially tailoring your marketing messages to millennials, you’re missing out. According to Leaders West Digital Marketing Journal, there are 76 million millennials in the United States, and they make up 27 percent of the population. They’re well-educated, with 63 percent having at least a bachelors’ degree. They are also major influencers, with 46 percent reporting that they count on social media when making purchases online.

10. Minorities’ purchasing power will increase. For small businesses, failing to recognize the growing buying power of minorities will have a negative impact on their bottom lines. According to an analysis of data conducted by USA Today, over 50 percent of U.S. cities now have majority non-white populations. And according to the U.S. Census, Hispanics make up 17 percent of the U.S. population have purchasing power that exceeds $1 trillion. That figure is expected to grow by 2017.

12/24/2014

On behalf of Restaurant Finance Company, we would like to wish you and your family a wonderful and safe Christmas!

12/23/2014

Top 10 Restaurant Trends Coming To A Restaurant Near You In 2015 - By Kate Taylor...

1. Meals served with a side of bragging rights.

In 2015, customers can expect dinners out to increasingly become a "staged event that imparts bragging rights," according to Technomic. That means more meals created with Instagram and Twitter in mind, as restaurants realize the power of the customer in generating social media buzz in real time. In other words, even if the year of the fast-food mashup is over, the Twitter-friendly Waffle Taco and Pizza Cake's will continue to shape the industry in 2015.

2. Go small or go home.

Tapas and dim sum have been on the tip of every foodie's tongue in recent years. Now, customers can expect other aspects of the menu to go small: menus are getting shorter, dining rooms are getting smaller and staff is being cut and replaced with new tech.

3. Traditional sit-down market shrinks.

The traditional fast food and fine dining industries are having a hard time measuring up to newer, alternative forms of foodservice. Fast casual is eating fast food's lunch, with customers preferring to spend their money at slightly higher quality chains like Chipotle, instead of fast-food classics like McDonald's. Then, there are fresh concepts like healthy vending, delivery services and innovative pop ups that all cut into the traditional restaurant market.

4. Beverage boom.

Restaurants are trying to make beverages a headlining act instead of a sideshow. With Starbucks premiering soft drink Fizzio and Coke increasing its share in Keurig, don't be surprised to see restaurants mixing up new beverages in both the alcoholic and non-alcoholic markets next year.

5. Asia ascendant.

In the past, when American customers think about "Asian food," it has been primarily Japanese sushi or Americanized Chinese food. In 2015, look for Korean and Vietnamese food and upscale ramen to take over mainstream menus. Yum Brands, parent company of KFC and Taco Bell, already opened Vietnamese sandwich concept Banh Shop in Dallas earlier this year.

6. Bitter is better.

Customers are developing a taste for bitter flavors. That means deeper chocolates, hoppier beers and darker coffee, with Dunkin' Donuts and Tom Hortons premiering their first dark roasts this year.

7. Customers' (healthy) choice.

The rise of customers with personalized diets means that healthy eating is taking on many different, highly specific forms. With the plethora of dieting options, the best way to make restaurants work for customers whether they are following the paleo diet or eating only vegan is to display pick-and-choose options. Then, as nutrition buzzwords come and go, restaurants can stay current.

8. Locavores take over.

Everyone is going local – super local. The love for local food mean rising customer interest in "everything from house-purified water to regional seafood to locally manufactured products like beers and liquors." That's bad news for most chain restaurants, who struggle to convince customers that their products are as sustainable and environmentally friendly as independent competitors.

9. Highlighting the human factor.

With calls for sustainable chains of production and increased minimum wage, the spotlight is increasingly on the people behind the food. Expect these battles to continue in 2015, and for the outcomes to affect the menu.

10. Forget Millennials – it's time for Generation Z.

Companies are endlessly trying to appeal to Millennials, jockeying for the attention of the social media savvy generation. Soon, they'll have a new concern: grabbing the attention of Generation Z. As younger teens are finally beginning to make their own decisions about where they go out to eat, restaurants will have to start trying to appeal to a new kind of customer in 2015. That means high-tech service, louder music, moving visuals and heightened experiences. In other words, it'll be enough for Millennials to be yelling at the kids to get off their lawns… and out of their restaurants.

12/16/2014

What does your customers say about your business? Does your business have a reputation of being friendly? Customers want to feel welcomed when they first walk through the door. They want a person to greet them and ask how their day is. First impressions are a must for any business. Successful businesses have the strive to meet the needs of their customers and beyond what is expected. Just this one small change in the atmosphere of your business makes wonders with your customers and word of mouth.

12/15/2014

Does your business need extra working capital? How soon do you need it? Do you have the credit or the time to go through the long drawn out application process from a bank? Call RestaurantFinanceCompany.com today or visit our website and fill out our online form to receive valuable information on our funding programs.

07/02/2014

Seeking Business Improvements or Extra Working Capital?

Our alternative business financing was created specifically to address the problems of traditional banking financing options like complicated approval processes, long waiting periods, spending restrictions and high decline rates.

Please Visit Our Website at: RestaurantFinanceCompany.com

06/10/2014

Extra Working Capital For All Businesses and Industries!

Visit: www.RestaurantFinanceCompany.com today!

All Small Business Seeking Capital For Improvements!!! Like Our page At Restaurant Finance Company by Restaurant Finance CompanyMay 27 – 2014 – What is your next improvement? All Small Business Seeking Capital For Improvements!!! Like Our page At Restaurant Finance Company – We und…