October 1, 2014

Small Business News: Small Biz Financial Update

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Important financial news continues to break. And we follow it all here in the Small Business Trends newsroom. The latest stories are on overdue changes and ongoing disparities disproportionately impacting small businesses. No matter what the business or what the tools you use to deliver your products or services to your customers, financial issues impact all small businesses and your ability to be profitable. Small Business Trends continues to advocate for small businesses on policy issues, but it’s equally important to know the realities as they are rather than how we wish they would be in order to allow you to continue operating your small business successfully into the future. It’s up to you. Enjoy!

Policy

Onerous tax reporting rule finally repealed! Well, it took long enough, but an onerous tax reporting rule that crept in with controversial U.S. health care legislation has finally been repealed. President Obama has signed legislation that eliminates an expanded 1099 mandate which would have hit small businesses especially hard given the involved reporting requirements. Bloomberg BusinessWeek

What a long strange trip it’s been. One of the most surprising things about the expanded 1099 reporting rules recently consigned to oblivion by a stroke of the presidential pen is how long they took to be repealed. Practically a poster child for excessive and unnecessary government regulation which was bad for small business, the rules were first reported in May of 2010 but have taken nearly a year to eliminate despite bi-partisan support. Bloomberg BusinessWeek

Taxes

Small biz compliance cost still disproportionate. Despite the importance of small business to the economy, here in the U.S. at least, small business owners still face many disadvantages including a higher cost per employee for tax compliance. If you want to get an idea of just how uneven things are, check out the chart at the above link and get a better idea. Small Business Trends

Why tax anxiety remains high. It’s bad enough that small businesses spend disproportionately more for tax compliance, but plenty of other tax anxieties occupy small business owners’ minds as well. Like the fact that the IRS seems focused on small businesses when scrutinizing returns and that companies hiring independent contractors, many of them small startup businesses, are often being targeted. The solution? Vigilance and engagement from the small business community. Open Forum  

Lending

Is small business lending getting better or worse? Our own Joel Libava weighs in. With varying news reports from different quarters, it seems clear funding available to small businesses, at least from traditional banks, must improve if the economy is to continue its recovery. There are plenty of people involved in this effort, but how long until small business owners and entrepreneurs can expect real improvement? Small Business Trends

Self-development

Business, profit and people. The last of these three MUST be the starting point for any small business, insists John Mariotti, but before you discount this philosophy as unrealistic or romantic, consider that, according to John, business and eventually profit flow directly from the efforts and needs of people. Neither business nor profit are an afterthought. Instead, they are a direct result. Open Forum

10 unconventional tips for managing finances. From tithing to designating a part of your money for fun, these are tips that can be applied by the entrepreneur or small business owner and some, like making your competitors into partners, is directly related to how you run your business today. Everything Finance

News

Canadian youth organization launches entrepreneur competition. The Canadian Youth Business Foundation has announced a development fund to be available to Canadian entrepreneurs between the ages 18 and 35. The fund was established in cooperation with another successful local business and is an example of a community still dedicated to helping new businesses thrived. Flock Free Nation

Tools

Save marketing budget with simple online tools. Mariam Noronha talks about her experiences with a social media site very near and dear to our hearts here at Small Business Trends, our sister site BizSugar.com. In fact, saving marketing costs by using a variety of free online tools to do the job is a great way to handle costs in the early days of your business. Don’t pay for services and products you might be able to get for free. TheOneOfAKindPreneur

Tips

Keep track of your friends. Have you kept track of all the people who have helped you in the launch of your business venture? It might be a good idea in case these folks feel entitled to a piece of your company down the road when you’re rich and famous. Keeping track of those who help you along the way may be good planning in the event this translates into a demand for equity in the future. WSJ

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