$300 Billion in New Loans

According to the U.S. Treasury Department, a total of 847  U.S. small banks applied for less than half of the $30 billion in capital available from the federal program, the Small Business Lending fund, to increase small-business lending. The  banks sought $11.6 billion. June 6  and of those who applied, 315 were seeking to use the funds to replace capital they had received earlier in the bailout for banks, from the Treasury’s Troubled Asset Relief Program.

The Treasury said the $30 billion, available only to lenders with less than $10 billion on assets may generate as much as $300 billion in new loans.

Still, many small businesses could not get loans from their local banks.  Survival in many cases was aided by factoring services from factoring companies. Invoice factoring enables cash flow, a necessity among small business owners.

 

Better Accounting and Financial Reporting Prompts Factoring

It is particularly important for small businesses to get into the habit of facilitating accurate, timely and meaningful financial reports.  These are important for the following reasons:

1.       Allows you to analyze and assess your company’s performance – both past and current.

2.       Helps in the understanding, monitoring and controlling of costs.

3.       This fulfills your bank and other third party requirements, including preparation for taxes.

4.       Sets your financial targets for next quarter and help with projections for the following next year.

5.       Monthly financial reporting should include

6.       Balance Sheet

7.       Income Statement

8.       Statement of Cash Flows

9.       Alerts you as to the need to implement factoring services to help pay bills.

10.     Provides you the small business owner with peace of mind.

Many small business owners stress because their invoices have not been paid on time.  Some have 30 day invoices that are running at 60 and even 90 days out, thanks to the recession.  But the one tactic mentioned above that can alleviate stress if the funds just aren’t there this month to pay your bills, is invoice factoring.  Also known as accounts receivable factoring,  small businesses everywhere globally are finding out that it is one of finances best kept secret.

#smallbiz #nonprofit

Source: Interface Financial Group

Disasters Prompt Need for Construction Factoring

Historically, natural disasters like the devastating earthquake and Tsunami that just happened  in Japan can cause unprecedented damage to a country's infrastructure, tremendously affecting business continuity, both in that country and abroad. For many companies, disaster recovery aid, and the funding for it, has become part of business planning. Many companies execute plans for relocation, or the outsourcing of crucial business functions during a crisis.

ACD Financial Services offers support to small businesses suffering from the consequences of natural disasters.   In fact often times construction factoring can be an essential  source and financial resource to benefit the many construction contracts underpinning rebuilding efforts needed during and after disasters. The construction industry is one of several sectors that can benefit tremendously from invoice factoring.

For example, a construction company could factor current outstanding invoices and would  not have to wait for payment before starting construction on a new project. Sub-contractors or construction firms can realize quick turnaround (often within 24 hours) on accounts receivable due, to staff up quickly, buy needed supplies and be off to help aid an ailing country.

Factoring offers an excellent source of cash flow by selling these invoices to a factoring company. With invoice factoring , there are no minimums, no maximums, no long-term commitments and no lengthy application process.

That's right, immediate working capital is available now.

#smallbiz #nonprofit

Source: Interface Financial Group 

 

Jobless Rate Falls to 8.9 Percent

Good news in the United States job market - for the first time in two years the unemployment rate in the U.S. has fallen below 9 per cent. Employers in the U.S. have hired 192,000 more workersno9n farm workers) as of February, and the U.S. unemployment rate has finally gone down to 8.9 percent.  Actually, according to the Labor Department, the unemployment rate fell for the third straight month in a row.

The unemployment rate in January was at 9.0 percent in January. Economists forecast the unemployment rate to rise to 9.1 percent. Job growth in December and January was revised higher by 58,000 jobs. Average hourly earnings held steady at $22.87. Earnings are up 1.7 percent in the past year.

 

Small Businesses Ramp Up: Many Use Factoring Companies to Secure Growth

It appears as if small businesses in the United States (firms with fewer than 50 employees) are finally ramping up hiring. Experts believe this is because of  more optimism among  as well as economic recovery, although the unemployment rate is still at nine percent.

Whereas a year ago at this time we were  losing thousands of job monthly, ADP data reported 100,000 jobs in February. There were 101,000 in January, and December as well. ADP is a payroll processor that reported the data on March 4th.

Small businesses defined as firms with fewer than 50 employees, started hiring in January 2010 and have been adding jobs consecutively for the last 12 months, according to ADP, which released its most recent report on Wednesday.

46 percent of the 217,000 jobs were added by small businesses last month -- most of which are labor and/or service-intensive.  These small businesses need cash to sustain, and to hire employees, pay their bills and continue to grow, so one tactic that we are seeing is more businesses using invoice factoring.  Factoring companies have seen an increase in new small business customers, in addition to those why discovered factoring long ago -- many of which use it as a business strategy.

 

#smallbiz #nonprofit

Small Business Tax Tips - Five Ways to Pay Less Tax

1.     File your income tax return on time or obtain a filing extension.  If you don't, you risk interest and penalties for late filing. You also lose the opportunity to make certain tax choices required on a return filed on time.

2.     Use retirement plans not only to save for your retirement needs, but also to reduce current taxes.  If you have not yet set up a retirement plan, consider a Keogh, SEP, or SIMPLE plan to put more away on a tax-deductible basis than you can under an IRA. Contact a financial advisor to set up a retirement plan.

3.      Keep good books and records for your business.  Keep these records separate from records of your personal expenses.  Keep good records to track both small and large expenses; small expenses can add up to significant expenses.  Keep these business records as long as necessary.  Generally, this is at least three years after the date you filed your income tax return.  In some cases, however, it's a good idea to keep records even longer.

4.     Keep records to substantiate your travel and entertainment expenses.  While you don't have to keep receipts for expenses (other than lodging) of $75 or less, you must still note in a log or diary the business purpose for the expense, the date it was incurred, and the amount you spent.

5.     Make sure to run a part-time business in a business-like manner, in case it incurs a loss. By keeping records of your part-time business, you'll be able to prove a profit motive and deduct the loss of the business from your taxes.  Keep separate books, records, and business bank accounts and change business operations with an eye toward making a profit.

#smallbiz #nonprofit

Reference: ACCION USA

 

Here are critical tax deadlines for 2011 #smallbiz #Tennessee #Tax

January 2011

Employers, businesses, banks, and other financial institutions are preparing various tax documents to mail out to you.

January 14, 2011

First day that the IRS will accept electronically filed tax returns. However, many taxpayers will need to wait to file their returns (whether e-file or by mail) due to last-minute legislative changes.

January 15, 2011

Deadline to pay your fourth quarter estimated tax payment. However, you can skip this estimated payment without penalty if you file your return and pay your balance in full by January 31, 2011.

January 31, 2011

Deadline for employers to mail out Form W-2 and for businesses to furnish Form 1099 statements reporting, among other things, non-employee compensation, bank interest, dividends, and distributions from a retirement plan.

Deadline for self-employed individuals to file and to pay their tax and avoid an penalty for not making your 4th quarter estimated tax payment.

February 16, 2011

Deadline for employees who claim exemption from withholding to file a new Form W-4 with their employers.

Deadline for financial institutions to mail out Form 1099-B, relating to sales of stock, bonds or mutual funds through a brokerage account, and Form 1099-S, relating to real estate transactions.

March 1, 2011

Deadline for farmers and fishermen who have a balance due on their taxes to file their individual tax return and pay the balance due without incurring any late payment penalties. For more details, see the Farmer's Tax Guide (Publication 225, especially chapter 15).

March 15, 2011

Deadline for corporate tax returns (Forms 1120, 1120A, and 1120S), or to request automatic 6-month extension of time to file (Form 7004).

Final deadline to file an amended corporate tax return (Form 1120X) for tax year 2007 and still claim a tax refund.

April 18, 2011

Deadline to file individual tax returns (Form 1040, 1040A, or 1040EZ) or to request an Automatic Extension (Form 4868). An extension provides an extra six months to file your return. Payment of the tax is still due by April 18th. You can submit payment for tax along with the extension form.

Last day to make a retroactive contribution to traditional IRA, Roth IRA, Health Savings Account, SEP-IRA or solo 401(k) for the 2010 tax year. (However, if you get an extension, you will have until October 17th to fund a SEP-IRA or solo 401(k).)

1st quarter estimated tax payments due for the 2011 tax year.

Final deadline to file an original tax return (Form 1040) for tax year 2007 and still claim a tax refund.

Final deadline to file amended tax return (Form 1040X) for tax year 2007 and still claim a tax refund. (Be sure to mail the amended return well before April 17th to make sure your tax refund will be processed in a timely manner. And be sure to obtain proof of mailing, such as a certified mail receipt.)

Deadline to file estate income tax or trust income tax returns (Form 1041) or to request an automatic 5-month extension of time to file (Form 7004).

Deadline to file partnership tax returns (Form 1065) or to request an automatic 5-month extension of time to file (Form 7004).

Final deadline for estates, trusts, or partnerships to file an amended tax return and still claim a tax refund for the year 2007.

May 16, 2011

Deadline for non-profit organizations to file information returns (Form 990), or request an extension (Form 8868).

June 15, 2011

2nd quarter estimated tax payments due for 2011 tax year.

Deadline for US citizens living abroad to file individual tax returns and to pay any tax due. You can request an additional 4-month extension (Form 4868). (Tip: you can request an automatic extension by April 15th instead if you want to.) I provide useful information for claiming the Foreign Earned Income Exclusion and the Foreign Tax Credit, two tax breaks essential for Americans working abroad.

June 30, 2011

Deadline to file TD F 90-22.1 Report of Foreign Bank Accounts for the year 2010. This report is required if you have over $10,000 (in aggregate) held in foreign bank accounts.

September 15, 2011

3rd quarter estimated tax payments due for 2011 tax year.

Final deadline to file corporate tax returns if an extension was requested. (Forms 1120, 1120A, 1120S).

Final deadline to file trust income tax returns (Form 1041) if an extension was requested.

Final deadline to file partnership tax returns (Form 1065) if an extension was requested.

October 3, 2011

Final deadline for self-employed persons or employers to establish a SIMPLE IRA for the year 2011.

October 17, 2011

Final deadline to file individual tax returns (with extension).

Last day the IRS will accept an electronically filed tax return for 2010. If filing after October 17th, you'll need to mail in your tax return for processing.

Final deadline to fund a SEP-IRA or solo 401(k) for tax year 2010 if you requested an automatic extension of time to file.

November 2011

Start planning any year-end tax moves.

December 1, 2011

If you are covered by an HSA-compatible health insurance policy as of December 1st, you'll be eligible to contribute the full amount to a Health Savings Account for the year.

December 31, 2011

Last day to make any tax moves for the year 2011. Last day to set up a solo 401(k) for self-employed persons.

Marital status on this date determines your marital status for the whole year.

 

Invoice Factoring Benefits

Invoice factoring offers many benefits over loans including:

• Funding for growth
• Improved cash flow
• Control over credit
• Debt protection
• Better terms with your suppliers

For more on the benefits of  factoring, contact ACD Financial Services www.acdfinancial.com.