Blog

Welcome to summer (almost), a time of graduation parties, college kids returning home, planned vacations, walking barefoot on the beach again and fingers crossed that those seedlings take off…

finally planted!

I am hoping you have some great plans, enjoy your weekend.

WEEKLY TAKE-AWAY

Sometimes less is more; the most common  items in garden stores are 3 or 4 packs, and many weekend gardeners, me included like variety so 2 plants of each variety or vegetable or flower type may be just right.  In addition, crowding cuts down on flower and/or vegetable production.  So this year I am planting mostly 2 and rarely 3 of a type and giving them more room to spread and grow.   I think the “less is more” philosophy is applicable to business and personal situations as well as gardening.  For instance in business picking a niche, understanding the nuances and profiting from this narrow business model.  Enjoy the “fruits of your labor”.

TAX ISSUES/TAX PLANNING

2022 Tax Estimate #2 are Due June 15th

Yes it’s that time again; time to review your year-to-date income and  profitability.  Let’s also put a positive spin on this exercise.  We can take the time to determine what your 2022 tax liability is, as well as look to do some tax planning, cash flow reviews and operations assessment.

• First steps, review your financial statements and compare activities with your prior year, annualize and project for a full year so that you are prepared to meet your current and full year business and personal tax liability.
• Next, consider making some changes in operations to positively affect your cash flow, life-work balance, return on investment.  Certainly look at equipment needs and use, professional services effectiveness, employee focus allocation, profit centers, etc.
• Finally, update or create a 90 day plan to incorporate tax plans, business goals, personal goals and exit plans

Extension Tax Returns with Balance Due

As we (and you) review your 2022 year to date income and expected tax liability you may find you have additional or updated 2021 tax information.  For those of you who have filed timely extensions you may find that new information may have caused insufficient funding.  Please pull together any additional documents so that the actual tax returns can be finalized and submitted.  Remember the extension was an extension of time to file, not an extension for time to pay, so any balance due will continue to accrue interest (don’t ask how much), let’s just get those returns finalized and submitted.

 IRS Penalty Relief Available for First Time Requests

Hopefully you will never need this tip, but nice to know it’s available.  In general, taxpayers may qualify for administrative relief from penalties for failing to pay on time under the IRS’s first-time penalty abatement program if the taxpayer:

• Did not previously have to file a return, or had no penalties for the three prior tax years;
• Filed all currently required returns or filed an extension of time to file; and,
• Paid, or arranged to pay, any tax due.

Hopefully you will never need this tip, but nice to know it’s there

FOR OUR GRADUATES  

Congratulations to our graduates, my daughter Emily and her co-fellows included.  It’s such an exciting time as many of our grads face their new jobs in their chosen career while others return home from college for summer jobs and reuniting with local childhood friends.   Some words of accounting wisdom:

Check-in with your company human resources department (HR) for eligibility to elect into potential tax advantaged and non-tax advantaged benefits:

• retirement plans
• health insurance
• dental insurance
• life insurance
• local travel support
• child care benefits
• tax withholding options
• savings assistance
• de minimis fringe benefits

ECONOMY

 Gas Prices Rise Yet Again

The national average gas price is now $4.87, with 10 states sitting at over $5 a gallon. Many more states are just pennies away, and costs are expected to rise further over the summer.  It really amazes me that as  I watch Netflix, Prime, or HULU series during my morning “spin” I have been seeing more and more advertisements for large vehicles which can pull RV’s and/or take vacationers to remote areas or cross country.  Yes we may be staying closer to home by not flying, but those huge motors are gas guzzlers; I just do not see the savings here- fly and stay at a hotel or purchase a heavy vehicle and maintain it for years.

UK  Companies Started 32-hour Work Week Trials

Over 70 companies and 3,300 workers are taking part in the world’s largest labor experiment, where only 4 days of work will be required without a cut in pay. The trial will last 6 months.  A pilot program testing the concept of a four-day workweek launched in the U.K. Monday in what is being touted as the world’s largest study yet in a growing movement pushing for slashing workers’ hours by 20% without cutting their pay.  Sounds good to me as we are a few days away from the official beginning of summer.

Peloton Names New CFO

For those of us who love our “Pele’s” it’s a both discouraging and encouraging to see so much shifting at the top.   During the last 2 year’s peloton bikes and the app has gained in popularity as more and more people looked for alternatives to their neighborhood gyms.  Liz Coddington was named the new CFO of Pel0ton.  She succeeds Jill Woodworth, who stepped down as Peloton’s Chief Financial Officer after serving the company since 2018.  This comes just 4 months after Peloton named a new chief executive, and before the end of its fiscal year on June 30.

Morgan Stanley Executive Warns of Volatile Market Conditions

The co-president of Morgan Stanley says that as fears of recession continue, investors should brace themselves for a “hot and cold” market environment in the coming months.  Last week, Ted Pick, head of institutional securities at investment bank Morgan Stanley, joined bankers and investors from Jamie Dimon to Carl Icahn in warning that chances of a recession are steadily rising, marked by periods of a hot and cold economy.

He forecasts an economic downturn and slowdown in banking business if “inflation and inflationary expectations are cementing” by next fall, as this would force the Fed to tighten monetary policy and raise interest rates even higher.

One of the First Starbucks to Unionize Will Close

Less than two months after the store in Ithaca, New York voted to unionize, Starbucks informed staff the store will close with one week’s notice. The closure is being called a “blatant and illegal retaliation” by workers.

Starbucks Workers United, the union with which Starbucks workers at more than 100 stores have unionized, said that on Friday, workers at the College Avenue store in Ithaca were given one week’s notice of the store’s closing on June 10. The union has filed an unfair labor practice charge with the National Labor Relations Board (NLRB), accusing the company of retaliation.

Apple Introduces New Payment Feature

Apple announced its Apple Pay Later service on Monday at WWDC. The new financial product allows you to make four equal payments over six weeks with no interest or late fees.

Personal Finance Advice Rarely Accounts for the Emotional Aspect of Money

Budgeting tips don’t go far without addressing the emotional part of decision-making. Read on for tips on how to address emotions when managing your accounts.

GENERAL RESOURCES

• IRS resources for stimulus payments:
  • Use the Get My Payment tool to check on EIP payment status
  • Eligibility and general information about Economic Impact Payments
  • A list of frequently asked questions for stimulus payments
• IRS information about the Advance Child Tax Credit Payments
  • Portal to update information
  • A list of frequently asked questions on the advance Child Tax Credit Payments
• The best source for up-to-date and accurate health information is the Center for Disease Control (CDC)
• Our Covid-19 Resource Center with relevant blog posts, videos and prior weekly newsletters
• Payroll, HR and benefits company Gusto has put together An Employer’s Guide to Navigating the Coronavirus
• Accounting Today has a special page for articles on COVID-19
• Intuit QuickBooks has a dedicated page to help small businesses
• Entrepreneur put together a listing of free tech resources for remote work
• The Consumer Financial Protection Bureau has warnings about COVID-related scams
• Fast Company has a listing of the best productivity apps for 2020
• The New York Times has an online newsletter on K-12 and higher education
• The Wall Street Journal has a collection of articles on education
• The Louvre has digitized 482,000 artworks from its collection
• PC Magazine explains how to carry your vaccination card on your phone
• How to create a strong password

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.