Make sure the price is right with market research
One way to help ensure your company makes the most of the year ahead is to re-evaluate its pricing strategy. Price changes shouldn’t occur in a vacuum; they require market research. Consider approaches such as focus groups, online surveys, social media feedback and free trials. Conduct competitive intelligence, too: There are ethical and effective ways to keep tabs on competitors. With the right data, you can decide whether to cut prices or perhaps charge a premium. We can help you analyze the pertinent factors and make an optimal decision.
You may be able to save more for retirement in 2019
Retirement plan contribution limits are indexed for inflation, and most have increased for 2019. So you may have opportunities to increase your retirement savings. Limits for 401(k)s, SIMPLEs and IRAs increase by $500, to $19,000, $13,000 and $6,000, respectively. Catch-up contributions (for taxpayers age 50 or older) remain unchanged, however. They’re $6,000, $3,000 and $1,000, respectively. Additional factors may affect how much you’re allowed to contribute. For more on how to make the most of tax-advantaged retirement-saving opportunities in 2019, contact us.
Do your long-term customers know everything about you?
Most business owners would agree that selling to existing customers is easier than finding new ones. Yet many companies squander potential sales to long-term customers because they don’t create awareness of all their products or services. Learn everything you can about your best customers’ missions, plans and operations. Also, instruct your sales staff to regularly ask about whether customers would be interested in products or services they’ve never bought. Our firm can help you identify your strongest revenue sources and provide further ideas for enhancing them.
Act soon to save 2018 taxes on your investments
Do you have investments outside of tax-advantaged retirement plans? You may still have time to shrink your 2018 tax bill by selling some of them. If you’ve sold investments at a gain this year, consider selling some at a loss to absorb the gains. But if you’ve sold investments at a loss, consider selling some that have appreciated, to the extent that the gains will be absorbed by your losses. Keep in mind that tax considerations shouldn’t drive your investment decisions; also consider your risk tolerance, investment goals and other factors. Questions? Contact us!
6 last-minute tax moves for your business
Tax planning is a year-round activity, but there are still some year-end strategies you can use to lower your 2018 tax bill. Here are six last-minute tax moves business owners should consider: 1) Postpone invoices. 2) Prepay expenses. 3) Buy equipment. 4) Use credit cards. 5) Contribute to retirement plans. 6) Qualify for the new “pass-through” deduction. These strategies are subject to various limitations and restrictions, so consult us before you implement them. We can also offer more ideas for reducing your taxes this year and next.
Getting ahead of the curve on emerging technologies
In today’s competitive business landscape, staying on top of emerging technologies is critical. Examples include machine learning to predict customer buying patterns and robotic process automation to automate repetitive manual tasks. Staying informed isn’t as difficult as you might think. Join relevant online communities and check industry-focused publications and websites. When you’re ready to integrate an emerging technology into your operations, forecasting implementation and maintenance costs will be critical. We can help you assess the financial impact.
Year-end tax and financial to-do list for individuals
With 2019 arriving here soon, there are several tax and financial to-dos you should address before 2018 ends. For example: Incur qualifying health care Flexible Spending Account expenses by Dec. 31 to use up these funds or you’ll potentially lose them. Also, max out contributions to retirement plans. Or, if applicable, take required minimum distributions from those plans. If gift and estate taxes are a concern, make $15,000 annual exclusion gifts. Finally, check your withholding and increase it if needed to avoid underpayment penalties. Contact us to learn more.
Can a PTO contribution arrangement help your employees and your business?
As the year winds to a close, most businesses see employees taking a lot of vacation time. After all, it’s the holiday season, and workers want to enjoy it. But some businesses find themselves particularly short-staffed because they don’t allow unused paid time off (PTO) to be rolled over to the new year. There are good business reasons to limit rollovers. Fortunately, there’s a way to reduce the year-end PTO vortex without allowing unlimited rollovers: a PTO contribution arrangement. It turns PTO into pretax retirement plan contributions. Contact us for details.
Family businesses need succession plans, too
Those who run family-owned businesses often underestimate the need for a succession plan. But you can’t assume an ownership transition will go smoothly just because everyone involved is family. Some family members may want to continue with the business; others may want to sell it. A thorough succession plan will answer questions about future ownership and any potential sale so successors don’t have to scramble or squabble during an emotionally difficult time. The key to making any plan work is to clearly communicate it with all stakeholders. We can help.
Check deductibility before making year-end charitable gifts
With tax law changes going into effect in 2018 and many rules applying to the charitable deduction, it’s a good idea to check deductibility before making year-end donations. First, total up your potential itemized deductions for the year, including the donations you’re considering. The total must exceed your standard deduction (which has been nearly doubled by the TCJA) for year-end donations to provide a tax benefit. Next, make sure the organization is qualified: http://apps.irs.gov/app/eos. Finally, meet the Dec. 31 delivery deadline. Contact us with questions.