Crazy to think there are only two more weeks until Christmas and only three more weeks left of 2023. There’s a lot of joy still to be had and opportunities for your Metro Detroit business to increase revenue

On the other side of that coin, though, rising costs and the Fed’s interest rate hikes have made it extremely difficult for some businesses to stay afloat.

Inflation alone has negatively affected the cash flow of 48 percent of small businesses in the last six months nationwide. And businesses in some sectors are struggling to hold up to the challenge — tech startups are especially crumbling right now. Also, 40 percent of small businesses reported this year that limited or inconsistent cash flow was their top financial challenge.

So if you would place yourself in that group, you’re not alone.

This is not a new problem historically, and the start of a new year is when businesses are typically thinking about how to fix it proactively. I’ve watched many, many Wayne County businesses over the years struggle through the cash flow crunch, and some of them fail because of it. Inflation is only accentuating the battle for available funds to pay bills, make investments, and meet payroll.

In many ways, year-end couldn’t come at a worse time. As if December holiday crazymaking wasn’t enough, as a business owner you’re also responsible for compiling an entire year’s worth of reporting data into comprehensible form for your accountant, with enough time to spare to make proactive decisions that will improve long-term profitability.

No pressure.

A proactive bookkeeping system can help lessen the load this time of year because you’re working on a monthly basis to compile financials into action items BEFORE the year-end crunch. If you need some help preventing this maddening scenario next year, let’s talk (real) soon:

calendly.com/rlscpa

Now, as you do EOY things, you might be looking at some really good financial data coming in and wondering if now is the right time to sell your Metro Detroit business and move on to other things. There are lots of other good reasons to sell your business: retirement is near, you’ve taken it as far as you can (or want to), you lack the passion to work on it anymore, etc.

Regardless of your reasons, there are obviously many financial and practical considerations that should play into your decision. If you think next year might be the time to sell your business, this one’s for you…

By the time you actually get to reading this, there is a very good chance that you’re reading a voice from the past. I make it a practice to prepare my Metro Detroit clients and friends a few days in advance, and RIGHT NOW, it is still 2023.

But 2024 is beckoning and is probably already here for YOU.

The thing to celebrate is that your Wayne County business made it through another year. Pop the champagne for THAT. It’s no small thing to run a business that doesn’t die in this economy. And it takes fierce intention and good leadership — even if only over your own worst impulses.

That’s why I still make it a practice to set my intentions for the year ahead — simply because when I do so, it has a way of working itself into my business operating system throughout the entire year.

I’ll start here: How can we serve you and your business in setting AND reaching your goals?

Let me start here, with some thoughts inspired by the golden arches.

McDonalds is reinventing itself in 2024. They’re testing a new small-format concept called CosMc’s that focuses on beverages and treats in an expanded, and more diverse, menu lineup. It seems that their market research revealed that there were growth opportunities to be had in these product offerings.

Making New Year’s resolutions seems like a waste of time. Sure, we might start with the best of intentions, but by February most of us have quit the gym, returned to normal eating habits, and left books unread on our bedside tables.

But something I do believe in making at the start of the year are goals — both personally and professionally, short- and long-term. I keep in mind my limits and then set the goal to push past those limits.

So, what are some of your goals for 2024? I’d love to hear more about them… especially any that pertain to your Metro Detroit business.

If you do go the resolutions route, one I think is worth anyone prioritizing in the new year: stop procrastinating. Procrastination is preventable with a little foresight and willpower.

And one thing you should not procrastinate on this year is filing your Beneficial Ownership Information report (BOI). Filing started as of yesterday. And while you have until the end of 2024 to get it finished, why wait? In the name of no more procrastinating, why not go ahead and knock this one off your list now while you’re thinking about it? (Note: BOI reporting doesn’t apply to every business. Reach out if you’re not sure you need to file a report. We can help.)

Now that we’re a week into the new year, all of last year’s broken things in your Metro Detroit biz have likely smacked you in the face a few times. Sadly, they didn’t magically get fixed while you were cleaning up wrapping paper and sneaking another sugar cookie.

But it’s a new year, so why not make plans now to fix a few of those pain points? I’ve seen some pretty good — and really bad — new year’s resolutions from business owners over the years. A few of the more useful ones that are worth sharing:

• Start (and end) meetings on time.
• Encourage your team to use their vacation time (and do the same for yourself).
• Invest in your own personal development to grow in a skill you need.
• Refresh or outsource your online marketing.
• Set aside budget to explore time- and money-saving technology.
• Look hard at improving your company culture.
• Put deadlines on your goals.
• Work with your accountant to make realistic financial goals and plans to reach those goals in the coming year.

Set an appointment here for that last one:

calendly.com/rlscpa

And if you’re like me, you’re highly motivated right now to implement better email inbox management, after digging out of your holiday-lagged inbox last week. It’s a new year, and since we’re already talking about resolutions, let’s explore some lesser-known strategies to help you better manage this annoying-but-essential tool of business communication.

“Save more” is a new year goal a lot of people put on their list, but it’s proven to be a difficult one to reach the last few years. In your Metro Detroit business, it’s likely some of your employees fall in this category — especially for those in lower income brackets.

Thanks to the Secure Act 2.0, there are ways you can help support your employees in building an emergency savings of their own. The IRS recently gave the green light for PLESAs (pension-linked emergency savings accounts). Basically, these are individual accounts in defined contribution plans and are designed to encourage employees to save for financial emergencies.

While you don’t bear responsibility for your employee’s financial choices, it’s become more common practice to find ways to support them in making good choices for themselves. Especially in an economy where everything costs more.

For you, this means you can match contributions to PLESAs at the same rate as the defined contribution plan. Also, eligible employees can contribute to PLESAs even if they’re not part of your defined contribution plan.

t seems business leaders aren’t worried about recession anymore. At least that’s what the annual World Economic Forum decided last week.

Economic experts and business leaders are saying that we’re not likely to see a U.S. recession in 2024. The Federal Reserve might lower interest rates soon, and people are feeling more confident about spending money, which is making everyone more hopeful about the economy.

I am hearing from plenty of Metro Detroit business owners, though, that they ARE worried about something else.

There are a lot of acronyms flying around business owner land about the new beneficial ownership reporting requirements that you might not be familiar with. CTA, BOI, FinCEN, BOSS. And the threat triggering fear in the hearts of business owners everywhere — daily compounding financial penalties for non-compliance.

Fear not. (I’m tempted to insert a nerdy joke here about being an “accountant to the rescue,” but I might lose you and I do really want to help remove some of the anxiety that led you to reading this note in the first place.)

Failure usually isn’t on your mind this time of year.

In fact, it’s the opposite. In January, you’re thinking of ways to make your Metro Detroit business succeed. You’re looking at last year’s data and setting growth goals. There’s excitement in the air, and you’re buzzing with optimism.

But that doesn’t always help you see clearly what happens if you fail. So, what if you considered failure now, you know, as a sort of pre-mortem in your goal-making?

See, even with data informing your thought process, it’s really easy to idealize where your business is going and fail to make the right choices. And because you’re likely only thinking in terms of success, you miss the wisdom of considering what happens if you fail to reach that goal.

And, if you look well enough, with the right perspective, failure is actually pretty easy to analyze. People don’t like to admit it, especially in advance. As JFK once said: Victory has a thousand fathers, but defeat is an orphan.

Why do people, organizations, and businesses fail? Often it’s because they don’t take a clear-eyed look at things, especially when they SHOULD — which is right before things get going.

This weekend we got a chance to see what’s trending in the world of music via the 66th Annual Grammy Awards. But something that wasn’t talked about on stage was the struggles of the music industry right now.

A lot of artists are facing difficulties with promoting their music online thanks to Universal’s battle with TikTok. And many music giants, including Universal and Spotify, are issuing layoffs across the board.

And yet, Taylor Swift is a juggernaut through it all with really industry-savvy moves like re-releasing her old albums and producing her own movie.

It pays to pay attention to what’s trending and strategize about how to capitalize on it.

And it’s also worth talking about the long-term. Because that shifts your strategizing as well.

Think about it. Where do you want your business to be in a year? Two years? Five years? Ten? Positioning yourself for a long term strategy means focusing on the changes that will carry your Wayne County business through the ups and downs to get to that end result. So, when you make decisions based on trends, they’re also unto the long-term strategy.

If you want to talk about how to make your business dreams a reality, I’m right here:

For a long time, the NFL was hands-off when it came to Las Vegas. They were unwilling to get anywhere close because of the long-time commissioner’s caution about the connections some big NFL names had with well-known mob connections.

Commissioner Pete Rozelle and his successors were adamant about their anti-sports betting stance. Major changes in the NFL’s attitude toward Vegas came, slowly but steadily. First with the Raiders finding a new home in its bright lights, and then the location for Super Bowl LVIII.

Major changes come to every industry with the effects of technology and the sway of public opinion. When times change and circumstances change, it means businesses (even giant ones like the NFL) need to progress with them.

How are you progressing in your Wayne County business with all the changes the past five years? The impact of digital accessibility and the increasing prevalence of those with non-noble intentions in those online spaces are bearing down on everyone’s decisions. That includes big hitters like Google.

See, in case you missed it, there was a MAJOR email sending update that Google and Yahoo pushed out on February 1. I’m jumping in here today to give you a brief overview of that update — because you’re a business owner regularly sending out emails to your customers and prospects, and you absolutely need to be in compliance.

We’re less than a month away from March Madness. The NCAA recently released the tournament schedule with locations, if you’re wanting to see your favorite team play in person. Or you just want to mark it on your home calendar so your family knows you’ll be commandeering the living room TV for a few weeks.

Something to mark on your office calendar that needs to be taken care of this year: Beneficial Ownership Reporting as required by the Corporate Transparency Act. Have you started gathering your documents and filling out the required form?

A year seems like a long time, but better you take care of it now than when you’re bogged down with the demands of your Wayne County business later on. Go here to start on that: https://www.fincen.gov/boi.

Or, if you’d rather talk it over first and get some guidance on getting it done, I’m here and ready to mark you down on my calendar:

calendly.com/rlscpa

See, I try to be very strategic and tactical in what I share with you in these blogs. I know the rigors of managing a business and want to provide you with resources covering the whole spectrum of business strategy and planning.

Firstly — a quick reminder that we’re reaching the end of the month, which means getting your monthly reporting done.. Send us anything we’ve been asking for … by the 1st?

Second — Have you reported your Beneficial Ownership Information to FinCen yet? If not, and you own a business type that’s required to report this (verify that here), then it’s time to get on that. While you have until Dec 31st to submit this information, it would be easier to tackle it now.

If you’re not sure what (or if) you need to report anything, or you’re just overwhelmed looking at the FAQs page and trying to figure out how to take care of it, then you might need some advice.

That’s something the Reina L. Sturdivant, CPA, PLLC office can help you with. Just grab a time here: calendly.com/rlscpa

I’m here to ensure my Wayne County clients know what’s required of them according to the law (especially new regulations like the BOI Reporting Requirement).

I’m also here to give you guidance on a variety of business-related things. That includes things like sales tax holidays. While these aren’t in every state, knowing how they work and what they mean for your business is just good preparation.

When I see relevant stats that my Wayne County business owner friends should know about, I’m going to share them with you. (You already know I’m a numbers person, after all.)

But first, a quick note about end-of-month tasks.

If you haven’t gotten all of last month’s expenses and income details over to my office, you’ll want to get on that ASAP, so we can get reports to you on how your business performed overall in February. And if you need to talk about that, I’m right here:

calendly.com/rlscpa

Now back to that interesting stat…

This week, I saw that 49 percent of small business owners reported that their businesses performed somewhat or much better than anticipated in 2023. That’s a positive sign!

But that same report showed that only 30 percent reported a profit last year.

(If this was you, let’s talk. Soon.)

Lots of interesting stats in that report to take in if you’re a business owner.

And this one: half of small business owners are planning to allocate budget toward technology and infrastructure. That’s an important number, and one I want to talk more about today.

No business management technique is sacred anymore. And rightly so.

In my world, there’s been a trend in recent years with businesses moving away from traditional, fixed budgets towards more flexible approaches. I think that could be said for most tasks within business management.

The ever-changing market landscape, economic uncertainties, rapidly developing technology, and the global scene are all forcing us to look beyond what our predecessors taught us.

What challenges are you facing right now? I’d be really interested to hear about them:

calendly.com/rlscpa

Many older trends have been re-emerging as well. Zero-based budgeting is a technique that’s been around for a while and has stayed around, for good reason.

It’s often appealing for its emphasis on linking spending to strategic goals, which resonates with modern business practices that prioritize creating value and optimizing existing resources.

Might it be something for you to explore? Let’s see…

Zero-Based Budgeting in Your Metro Detroit Small Business

“A budget is telling your money where to go, instead of wondering where it went.” – Dave Ramsey

Zero-based budgeting (ZBB) is not a new idea in the business world. It first emerged in the 1970s at Texas Instruments and led to significant cost savings within the company.

Let’s get real: It’s mid-March and January’s zeal for fixing all the broken things in your business has probably faded by now.

Maybe you started the year with a bang, but the grind has set in and it feels more like, well, a grind.

That new spreadsheet you created to track your goals isn’t enough to actually achieve those goals. And you’re still scrambling, just like last year.

That may feel bleak, but it’s real for many of my clients. So let’s do something about it.

What are some real tools business advisors like me can offer to help you keep moving forward in your business? I’ve got five for you today…

Why Retain Metro Detroit Business Advisors Year-Round

“If you don’t know where you are going, you’ll end up someplace else.” – Yogi Berra

A once-a-year approach to business planning just doesn’t cut it in today’s business economic climate. You have a budget and an annual plan, you got last year’s taxes filed, and you’re caught up on your books.

What’s next?

A lot, actually, that business advisors can help you with to actually make forward progress.

Business accounting is a year-round process.

Now, it’s not realistic to start all of these in one year, so think through last year’s pain points as you read this list and prioritize what’s most important. These are all services qualified business advisors can help you with.

We’re working hard for you.

And we always want to make sure you’re optimizing your processes for profit, efficiency, visibility, and legal compliance. Including areas that often get overlooked…

I keep seeing headlines about the arm wrestling over remote work, as it continues to be debated among US employers. More companies are demanding a full or partial return to the office, or at least stating their value for it and desire to track it more closely.

But workers have their own agenda: 42 percent of Gen Z would leave their current job for a remote opportunity.

That could be a tremendous hiring advantage for you, or a significant disadvantage, if you haven’t pivoted to remote or hybrid work models yet.

One often-overlooked area for Metro Detroit business owners with a geographically scattered workforce: I-9 verification in managing remote workers.

Let’s straighten out how to manage I-9 requirements for your remote team and ensure you stay compliant.

Managing Remote Workers Through I-9 Requirements: A How-To for Metro Detroit Businesses

Here we are four months into a new year and plugging along towards 2024’s goals for your business.

First, thank you so much for your trust, and for allowing us to be the ones you trust to guide you on the path you’re charting for your business.

Since we work with so many Metro Detroit businesses, it’s perhaps obvious that there is far more to what we do than accounting. There is much more to being an effective advisor for your business than simply logging numbers and making sure things match up.

Many business owner clients use our services to help them see what they can’t… and thereby continue to achieve said goals throughout the entire year.

If you’re reading this and don’t use our services and are interested in hearing about what that could look like for YOU, let’s have a chat:

calendly.com/rlscpa

To give you a little taste, let’s talk about one area that really affects the future of your business: retiring from it.

There’s a new-ish buzz word floating around workplaces and among aging workers – flextirement. Have you heard of it?

Basically, it’s a new iteration of the phased retirement approach (that’s not new) that allows employees to gradually ease into full retirement, reducing work hours over time while maintaining some benefits.

An important date is coming up, and even though I’m not your tax person, it only seems fair to remind you…

The tax filing deadline is Monday, April 15th. Last minute filing is not recommended for the sake of your business’s financial health.

Besides that, we’re now into Quarter 2, which means taking some time to reflect on what worked and what didn’t work in Q1. It’s also a good time to see how you’re measuring up to your business goals this year.

If you want to chat about that, I’ve got room in my schedule:

calendly.com/rlscpa

This week, I want to talk about business debt… because I hate seeing, when I sit down with a business owner, that they got in over their head with financing. Unfortunately, it’s sometimes too late when I do — and the potential solutions end up being moot.

While I have helped execute some semi-miraculous rescues from business debt situations that seemed impossible for clients in the past, sometimes it’s just too late when the opportunity to help comes along.

So, let’s address that subject today in hopes that I can help you in more ways than one.

3 Debt Elimination Steps for Your Metro Detroit Small Business

Ever thought about taking a “mini sabbatical”? As in, longer than a week vacation and focused specifically on total rest? Here’s why I ask…

Tax Day has come and gone, and, after a four-month sprint of paperwork marathons and client demands, my tax pro friends are prioritizing downtime. A lot of them take extended periods off this time of year to mentally break away from the stress their busiest season brings.

They’re not the only ones who understand the necessity of doing so. Teachers are another great example. Those summer months away from the classroom are essential for closure and a clearer head for the new school year.

Despite the value seen in a prolonged rest from work, generally, we aren’t very good at taking time off of work… but maybe we should be.

Burnout is real. 2020 helped us not only slow down but actually recover from the stressful demands of work. Now, more people are catching on, embracing extended rest as an essential part of their adult life.

Why do I bring this up today? Mainly to get you thinking about rest for yourself as a business owner — you work around the clock to keep your business running. And since it depends on you to thrive, you also need to promote lifestyle practices that help you thrive as well.

Happy Earth Day. The day we celebrate this little blue marble we all enjoy living on.

I found this fascinating as I was reading about it this morning — there are so many elements that make up the scenario of a thriving Planet Earth.

Less threats because we’re in the sticks of the Milky Way. The sun is stable and allows us to enjoy a lot of liquid H2O. Earth’s magnetic field helps deflect harmful radiation that would fry us. Our atmosphere traps heat so we don’t freeze to death. Nearby neighbor Jupiter keeps huge asteroids and comets from crashing into us (thanks, Jupe).

Those are some ideal conditions. Change even one of them and life would be much different for you and me.

The thing is, the possibility for cataclysmic events to occur is very real. Unfortunately, there’s not much we could do to prepare for said events (even if sci-fi movies like to make us believe that’s possible).

But there are things we CAN prepare for. Like disasters. We can’t always predict when they’ll happen, but we can plan and build for if they do.

The same goes for your Metro Detroit business. Challenges are inevitable. Take Tesla for example.

Tesla’s stock dropped around 40 percent this year, due to investor concerns that demand for the elite EVs also dropping. Now, Tesla is cutting prices, laying off employees, and recalling some of its vehicles.