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Author name: naresh

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Growth, Sales & Marketing

Pricing mistakes that cost your business more than you think

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Pricing can make or break your business. Yet many owners still treat it as guesswork instead of strategy. Underpricing, outdated rates, or unclear models quietly drain profit and limit growth. 1. Underpricing to win customers. Keeping prices low might attract buyers, but it often signals low quality and destroys margin. Actions: Review costs and confirm a healthy margin. Know competitors’ prices but don’t copy them. Define and communicate your value clearly. Test small price increases and track results. Try this: Pick one core product. Model what happens if you raise the price 5–10%. How many fewer sales before you still come out ahead? 2. Adjust for rising costs. Inflation, supplier increases, and wages creep up—don’t let your prices lag behind. Actions: Review pricing every 6–12 months. Monitor top cost categories monthly. Raise prices gradually and explain why. Add or highlight value when you increase prices. Try this: Compare your top five cost categories today vs. a year ago. If costs rose but prices didn’t, your margins are shrinking. 3. Know your real profit drivers. Not all products contribute equally. Without margin visibility, you can end up pushing low-profit items. Actions: Break out gross margin by product or service. Flag high-volume, low-margin items. Reprice or drop underperformers. Focus marketing on high-margin offerings. Try this: Run revenue and gross profit by product for the last quarter. Which ones carry your business? 4. Simplify your pricing model. If customers can’t understand your pricing fast, they’ll walk. Actions: Keep pricing clear and easy to compare. Avoid hidden fees or jargon. Test tiered or package options. Ask outsiders to review for clarity. Try this: Have someone unfamiliar with your pricing explain it back to you. If they can’t, simplify. 5. Don’t fear price increases. Avoiding them undermines sustainability. Actions: Explain increases transparently. Link them to improved value or rising costs. Start with small groups or new customers. Track churn and feedback afterward. Try this: Test a price increase on one offering. Measure margin and customer response. Bottom line: Every dollar lost to poor pricing is one you must work twice as hard to replace. Review your prices regularly, align them with your value, and adjust as costs shift. Pricing isn’t a one-time decision—it’s an ongoing strategy.

Accounting & Bookkeeping

Tired of chasing payments? Handy tips for managing your receivables

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Running a small business is a constant juggle, and one of the more frustrating tasks is managing your receivables. How often have you found yourself waiting on overdue invoices, wondering if you’ll have enough cash flow to cover next month’s expenses? If this sounds familiar, you’re not alone. Many small business owners struggle with keeping their accounts receivable in check, which can ultimately impact their business’s health and sustainability. In this guide, we’ll walk you through practical steps to streamline your invoicing process, approach past-due invoices with confidence, and ensure your cash flow remains steady. Understanding the importance of timely invoicing Timely invoicing is more than just good business practice; it’s a critical component of maintaining a healthy cash flow. When invoices go unpaid, your cash flow takes a hit, potentially affecting your ability to pay suppliers, cover payroll, or invest in growth opportunities. By sending invoices promptly, you lay the foundation for timely payments. Studies show that businesses who practise timely invoicing and set clear payment terms see fewer delays and disputes. Setting clear payment terms and policies To avoid confusion and ensure your clients understand their obligations, you need crystal-clear payment terms and policies. These should be outlined in every contract and reiterated on every invoice. Here are some essential components to consider: Due dates: Clearly state when payment is due, whether it’s upon receipt, net 30, or another timeframe. Late fees: Specify any penalties for late payments, such as interest or a flat fee. This encourages prompt payment and offsets the cost of delays. Payment methods: Offer several options, like bank transfers, credit cards, and digital wallets, to make it convenient for clients to pay. By having these terms laid out upfront, you’ll reduce misunderstandings and set expectations from the get-go. Leveraging invoicing tools and templates Gone are the days of manual invoicing and keeping track on spreadsheets. Today, there are numerous invoicing software options that can automate and streamline your billing process. These tools offer templates that ensure consistency and professionalism. Tools like QuickBooks, FreshBooks, and Xero allow you to automate invoice generation, send reminders, and they integrate with your accounting systems. The result? Less time spent on paperwork and more time focusing on your business. Strategies for collecting past-due invoices Let’s face it, chasing after overdue invoices is a task that few enjoy. However, it’s essential for your cash flow. Here’s how to approach it: Polite reminders: Start with a friendly reminder email shortly after the due date. Acknowledge that oversights happen and provide an easy way for them to pay. Follow-up calls: If emails go unanswered, don’t hesitate to pick up the phone. Sometimes a personal touch is all it takes to resolve the issue. Overdue statements: Send a statement outlining all overdue invoices and any applicable late fees. This formal documentation can prompt action. Remember, consistency is key. Establish a routine for following up on overdue invoices, and stick to it. Offering incentives and payment options Offering incentives can encourage timely payments. Consider providing a small discount for early payment, which can be an attractive option for clients looking to save a little cash. Additionally, the flexibility of multiple payment methods can remove barriers to prompt payment. For instance, offering an early bird discount of 2% for payments made within 10 days can motivate clients to pay sooner rather than later. Understanding outstanding vs. past due invoices It’s crucial to distinguish between invoices that are outstanding (not yet due) and those that are past due. Outstanding invoices are simply payments expected at a future date and don’t require immediate action. Past due invoices, on the other hand, have missed the agreed payment date and need your attention. Managing these categories effectively ensures you’re not wasting resources on invoices that don’t yet need follow-up. Final thoughts Managing receivables efficiently is vital for small business success. By implementing the strategies  above, you can reduce time spent chasing payments and improve your cash flow. Remember, the goal is to create a seamless process that encourages timely payments and reduces disputes. Ready to take control of your receivables? Start streamlining your invoicing process today. Reach out to us for additional tips and support. The more proactive you are, the healthier your business will be in the long run.  

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Finance & funding, Growth

Raising equity capital

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Equity capital involves selling a portion of your business in exchange for cash. It’s often ideal for startups or businesses in high-growth phases that need significant funding for expansion. There are various types of equity investors, including angel investors, venture capitalists (VCs), and corporate investors. Talk to us early about your options and how we can help. Each source its own approach and requirements, but not all can provide the necessary funding but access to networks and expertise that can help accelerate your growth. Identifying potential investors When seeking capital, it’s essential to get the right guidance and explore all available funding sources. Here are a few key steps to consider: Talk to us. We offer a variety of business loan packages that can support growth at different stages of your business development. Engage with investor networks, including angel investor groups, venture capital firms, and industry-specific investors, can connect you with potential funding sources. Conduct thorough research to make sure you align with investors who match your business goals and stage of development. When you approach both financial institutions and investor networks, you’re making sure that your funding search is as targeted and effective as possible. Preparing for investor discussions Thorough preparation is essential when approaching potential investors. Being ready with the right materials will facilitate a smooth and professional discussion. Start with a single-page overview, a concise snapshot of your business to capture the investor’s attention. Follow up with a detailed summary, which should include financial projections and key business dynamics to give a clearer picture of your company’s potential. Share detailed financial records and operational documents once investors show serious interest. Use a term sheet, which is a non-binding agreement that outlines the key investment terms and timelines for due diligence. Make sure a confidentiality agreement is in place, as it’s important to protect your business by securing sensitive information before sharing it with potential investors. Carefully prepare your materials and agreements, so that you’re encouraging trust and smoother negotiations. Prepare for their due diligence The due diligence process allows investors to assess the risks and growth potential of your business. It typically involves evaluating several key areas, including your management team, product offerings, business model, financial health, and market position. Preparing for this step requires a detailed review of your business operations and financials so that you can provide all necessary information and address any concerns. Let’s work together to find the best solution that will fuel your growth, providing the financial flexibility and stability your business deserves. Engaging the right professionals and thoroughly preparing your business is how to secure the funding needed to scale your operations and drive growth. Whether you pursue equity funding or explore business loans, the key to success lies in careful planning, expert guidance, and a clear vision for the future.

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Accounting & Bookkeeping

Why Monthly Accounting Is Non-Negotiable for Serious Business Owners

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Why Monthly Accounting Is Non-Negotiable for Serious Business Owners When it comes to running a business, there’s one truth every serious owner must accept: relying on quarterly bookkeeping is no longer an option. Monthly accounting provides the kind of accurate, current financial information that helps you stay in control, make informed decisions, and support steady growth. At Bridged Financial Solutions, we see firsthand how monthly accounting strengthens businesses and simplifies day-to-day financial management. The cash in your bank account might seem like the ultimate measure of success, but it’s just a snapshot in time—and often a misleading one. To truly succeed, monthly accounting is absolutely vital. The Problem with Quarterly Bookkeeping Waiting three months to review your books creates a dangerous blind spot. At the end of the quarter, you’re flooded with questions about transactions and expenses from months ago. Can you clearly remember what happened last week? Last month? Now imagine trying to recall all the details from 3 to 4 months ago—that’s a gamble that risks errors, missed deductions, and financial surprises. Quarterly financial statements show you where your business was, but business success depends on where you’re going. By the time you see those reports, they’re borderline stale data. Monthly financials, combined with budget analysis, give you timely, relevant insights so you can react quickly and take control. Why Focusing Only on Cash Is Risky Cash on hand is an important metric, but it doesn’t tell the whole story. Many owners make the mistake of reacting only to their bank balance without understanding the recent financial performance driving that number. Cash flow fluctuates for many reasons and doesn’t reveal if your business is profitable, where costs are rising, or if debts are mounting. Monthly accounting shines a light on these critical factors. It provides a detailed view of your company’s financial health and trends, allowing you to plan ahead, catch problems early, and avoid nasty surprises. The Myth That Quarterly Saves Money You might think quarterly bookkeeping saves time and money. The truth is, the work accountants do is roughly the same whether it’s monthly or quarterly. Older transactions take longer to investigate and classify properly, which means quarterly bookkeeping often leads to more work per transaction and higher chances of errors. Monthly accounting breaks the workload into manageable chunks to keep everything fresh, accurate, and easier to handle. This reduces risks and builds a solid foundation for confident financial management. The A Plus Reason: Agility The strongest case for monthly accounting is agility—the ability to pivot quickly, respond to opportunities, and prevent problems before they escalate. It keeps your finger on the pulse of your business every 30 days rather than every 90. With monthly financial reports, you can spot trends, optimize cash flow, adjust budgets, and make strategic decisions based on real-time information. This kind of financial clarity is non-negotiable for business owners who want to succeed and scale in a competitive market. In today’s business world, there’s no excuse for flying blind. Monthly accounting isn’t just a best practice—it’s a necessity. It transforms your financial data from dusty numbers into a powerful tool for growth, control, and peace of mind. If you’re serious about your business, monthly accounting isn’t optional—it’s the foundation for everything that comes next. If you’re ready to stop relying on guesswork and start making informed, confident decisions every month, Bridged Financial Solutions is here to help. Our monthly accounting services deliver the timely, accurate financial insights you need to keep your business on track and growing. Let’s work together to build a financial foundation that supports your success—contact us today at (808) 201-7630 or email letsworktogether@bridgedfs.com. You can also visit us online at www.bridgedfs.com to learn more and get started.

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Personal Finance

Free Money for New Kids

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Introducing Trump Accounts: A New Path to Financial Security for Kids Starting in 2025, the federal government will initiate a groundbreaking program called Trump Accounts, designed to give every newborn U.S. citizen a financial head start. As part of the initiative, eligible children born between 2025 and 2028 will receive a one-time $1,000 seed deposit into a special investment account set up in their name. How Trump Accounts Work • The $1,000 government contribution is automatically deposited into an account invested in a low-cost stock market index fund designed to grow over time. • Parents, relatives, and even employers can contribute up to $5,000 annually to these accounts on behalf of the child. • Employer contributions are capped at $2,500 per year, and these count toward the $5,000 total annual limit. • Funds remain locked until the child turns 18, encouraging long-term saving and investment growth. • Once the child reaches adulthood, they can use the money for higher education, buying a first home, starting a business, or saving for retirement. How Parents Can Claim and Use Trump Accounts • Automatic Eligibility: Eligible children born between January 1, 2025, and December 31, 2028, who have a Social Security number will receive a Trump Account with the $1,000 seed money automatically or with minimal parental action, depending on Treasury guidelines. • Account Setup: Parents will be able to open and manage the accounts through participating financial institutions. Others, like relatives or guardians, may also help manage contributions. • Contributions: Parents and family members can contribute after-tax dollars up to $5,000 per year (indexed for inflation starting 2028). Employer contributions up to $2,500 per year count toward this limit. • Restrictions: Contributions can only be invested in government-approved low-fee index funds until age 18. Withdrawals before 18 are generally prohibited except for specific exceptions such as education or first-time home purchase. Tax Treatment and Withdrawals • Contributions made by parents, guardians, or relatives are after-tax and create a “basis” in the account; these amounts are not taxed again upon withdrawal. • The initial $1,000 government seed money, employer contributions, charitable gifts, and all investment earnings are taxable when withdrawn. • Withdrawals before age 59½ of taxable amounts may be subject to a 10% early distribution penalty, unless an IRS exception applies. • Qualified exceptions to avoid the 10% penalty include: o Higher education expenses o A first-time home purchase (up to $10,000 lifetime limit) o Small business expenses (entrepreneurship) o Disability o Qualified birth or adoption expenses (up to $5,000 per event) o Federal disaster recovery costs • When the child turns 18, the account transitions to traditional IRA rules, including tax treatment and penalty exceptions. • Regular income tax applies to all taxable withdrawal amounts, regardless of penalty exceptions.

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Tax & Compliance, Technology

Stay alert from IRS scams

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Fraudsters are posing as IRS representatives to steal Social Security numbers, bank account details, and even full refunds, using emails, text messages, and robocalls that appear legitimate. These schemes are becoming more aggressive and sophisticated each year. What IRS scams look like Some of the most common tactics include: Emails claiming you’re eligible for a refund and asking you to click a link to ‘verify your information.’ Text messages stating your IRS account is frozen unless you log in using a link. Voicemails warning of legal action, arrest, or asset seizure unless you pay ‘outstanding taxes’ immediately. Fake IRS websites that mimic the look and feel of the official IRS portal. Social media messages from fake IRS accounts offering to ‘help you resolve tax debt.’ These scams are not only persistent, they’re carefully crafted to fool even digitally savvy individuals. In many cases, they spoof real IRS phone numbers or use official-looking email domains. Why people fall for these scams Taxpayers are especially vulnerable if: They’re anticipating refund updates or tax return confirmation. They’ve recently moved, changed jobs, or switched accountants. They receive other legitimate IRS notices and find it hard to distinguish real from fake. They’re concerned about penalties or missing deadlines. Scammers create urgency to cloud your judgment, but don’t let fear override your instincts. Protect yourself with these 3 steps 1. Pause and assess the message If you receive a message from ‘the IRS’ that seems suspicious or demands immediate action, don’t respond straight away. The IRS does not communicate with taxpayers in this manner. 2. Know what the IRS doesn’t do The IRS will never: Contact you by email, text, or social media to ask for personal or financial information. Demand payment through gift cards, wire transfers, or cryptocurrency. Threaten to arrest you over unpaid taxes. Leave aggressive voicemails or send QR codes in messages. All genuine communication from the IRS will be one of these methods: www.irs.gov/help/how-to-know-its-the-irs. 3. Report and take action If you receive a suspicious message: Forward scam emails to phishing@irs.gov Report calls www.irs.gov/privacy-disclosure/report-phishing Notify us Contact your bank if you shared any financial details By reporting these scams, you help IRS enforcement teams shut down fake websites and fraudulent phone numbers. What to do if you’ve been scammed If you’ve fallen for a scam or entered your details into a fraudulent website: Contact your bank and credit card company immediately. Place a fraud alert on your credit reports through Equifax, Experian, or TransUnion. File an IRS Identity Theft Affidavit (Form 14039). Report the scam at www.identitytheft.gov. Acting quickly can stop scammers from doing more harm with your information. Tips for business owners If you run a business: Use multi-factor authentication for all IRS logins. Never click on links in emails claiming to be from the IRS. Monitor your IRS e-Services account for unauthorized access. Train staff to recognize phishing emails targeting payroll or W-2 data. Many scammers target HR and finance departments to gain access to employee tax records, especially during the first quarter. Closing message Scammers rely on fear and confusion. When something doesn’t feel right, take a step back and confirm using trusted sources. You’re never in trouble for asking questions or delaying a response to double-check a message. When in doubt, go directly to www.irs.gov, contact the IRS, or speak to your tax advisor. The safest taxpayer is an informed one.

Payroll

5 ways outsourcing payroll can help you

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When you start a business, you’re typically your only employee and payroll is about as simple as it gets. But as you grow, you hopefully find yourself in the position of needing to take on more employees. Before you know it, what was once a very straightforward task becomes a giant undertaking that’s sucking up most of your time. This is when it makes sense to outsource your payroll. While this is yet another cost to consider, it’s actually a great idea that easily pays for itself. Here are the ways outsourcing your payroll can help you: 1. Free up your time In any small business, there is a lot of legwork that comes with running payroll. The percentage of time spent on it is quite large compared to the other aspects of your business. This is because it’s a complex task that needs to be done every single week – forever. You may feel that payroll is never done and that’s because it truly never is. Outsourcing your payroll is one of the easiest ways to free up more of your time, which can then be put into other tasks that actually help your business thrive. Once you reclaim this huge chunk of time, you’ll wish you made the switch sooner. 2. Reduce errors Yes, there are the actual hours worked that you need to account for. That’s complicated enough. But add in sick days, holiday pay, other types of leave, employees leaving early or arriving late, and other complications, and suddenly your payroll has become a daunting task that you would probably rather just ignore. This is where the beauty of outsourced payroll comes in. Because you are paying a professional to worry about all of these little things, you no longer have to worry about all of the potential areas where you could make a mistake. And the thing about a payroll mistake is that it typically takes even more time and energy to fix. Not to mention, you likely now have to assuage a disgruntled employee. With outsourced payroll, this mammoth task is simply done for you, and done correctly. Every single time. And that’s good for you and good for your employees. 3. Reduce costs While you may initially balk at the cost of outsourcing your payroll, it’s actually a money-saver. When you put a dollar amount on all of the time you spend struggling through, this is often enough in itself to pay for a pro to take it off your hands. Not to mention, the cost of fines and penalties that can arise from mistakes. If you find yourself having to cough up money in these circumstances, you’ll wish you outsourced your payroll sooner. 4. Maintain compliance We can’t all be tax or finance professionals. Chances are, if you’re running a business, you have an entirely different industry on your mind most of the time. So, it makes sense to hire someone who’s in the business of payroll to look after this for you. Maintaining compliance with your region’s tax authorities is a challenge that has to be met every year. And tax laws and codes are always changing. The average person can’t be expected to stay on top of all of this information, so why not get someone who knows the ropes to take care of it for you? It could save you a lot of money come tax time. 5. Eliminate headaches There is nothing more valuable than the feeling of being stress-free. When you hire a payroll professional, you can relax knowing that your business is in good hands, that your employees are getting paid correctly and on time, and that you’re doing everything right. Final Thoughts There are a lot of reasons why outsourcing your payroll just makes sense. By letting go of this time-consuming, finicky task, you will likely find that you’re enjoying your business more. Not only that, but you’ll be able to put your energies into other things, meaning your business is likely to grow.

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Business Updates

Business Update – June 12 2024

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Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy. The economy is healthy, but inflation is overshadowing growth Despite high interest rates and stubborn inflation, the economy is growing remarkably well. All the major indicators we use to gauge its health—and how families and businesses are faring—are strongly positive. Mortgage closing fees are in the hot seat. Here’s why feds are looking into them. The Consumer Federal Protection Bureau last week launched an inquiry into what the agency is calling “junk fees in mortgage closing costs.” These additional fees, involving home appraisal, title insurance and other services, have spiked in recent years and can add thousands of dollars to the final cost of buying a home. Fed dot plot is set to offer glimpse of rate-cut resolve Investors may glean more on the Federal Reserve’s resolve to ease monetary policy when US policymakers update their forecasts for interest rates Wednesday for the first time in three months. US home sales post second straight monthly drop; house prices accelerate U.S. existing home sales unexpectedly fell in April as higher mortgage rates and house prices weighed on demand, dealing another setback to the housing market. Report shows rent is unaffordable for half of renters as cost burdens surge to record levels The number of renter households spending more than 30 percent of their income on rent and utilities rose by 2 million in just three years to a record high of 22.4 million, according to America’s Rental Housing 2024, a report by the Harvard Joint Center for Housing Studies. Fed seen waiting to cut rates as job growth picks up A U.S. job market scorecard that exceeded all forecasts has undercut confidence over when, or even if, the Federal Reserve will begin easing policy this year, putting the focus for the policy outlook on next week’s Fed meeting and Fed Chair Jerome Powell’s own guidance. US states with the best economies in 2024 – and the worst The United States has the largest economy in the world, and each of its states and territories play a part in keeping its massive engine running. The states with the largest populations also contribute the most to gross domestic product, but a new study from WalletHub looked under the hood to gauge additional indicators of performance and strength. US business travel is back but it looks different, hotel CEOs say Business travel has returned to the United States, hotel executives at a New York industry conference said this week, as companies of all sizes are increasingly booking trips at higher levels and prices than before the pandemic. No-tariff shipments popular with Shein, Temu hit US customs speedbump A new U.S. crackdown on customs brokers handling billions of dollars in inexpensive online shopping orders from giants like China-linked Shein and Temu is likely to cause delivery delays and bottlenecks, industry experts said. US may revive some shut nuclear plants to help meet emissions goal, energy chief says The United States could revive some of its recently retired nuclear power plants to help meet rising demand for zero-emissions electricity, or add reactors to existing sites, Energy Secretary Jennifer Granholm said in an interview. Get in touch Contact us if you have any questions or want to discuss the next steps for your business.

Accounting & Bookkeeping

Unravelling the mystery of missing profits: A guide for new business owners

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  Embarking on a business venture is a rollercoaster journey filled with highs and lows. A common challenge that new entrepreneurs face is the discrepancy between projected profits and actual cash on hand at the end of the fiscal year. This guide is designed to help you uncover the hidden sources of your missing revenue and address any financial concerns.   Possible causes of missing profits There may be several reasons why your business has shown good performance throughout the year, yet there’s little cash to show for it in the end. Here are a few possible places your profits could be lurking: Unsettled debts: Some of your customers might have acquired your products or services without paying yet. Inventory: Your profits might be tied up in unsold stock or raw materials, especially if you buy in bulk. Asset acquisition: If you’ve purchased new assets like a work vehicle, these expenses are depreciated over several years and not all claimed in the year of purchase. Owner withdrawals: Balancing the amount of profit you withdraw from your business for personal use can be tricky. Navigating financial statements   Understanding your profit and loss statement is crucial in assessing your financial standing. It details your business’s income and expenses for a specific period, regardless of whether these transactions have been finalized. This includes sales or purchases made on credit, which can result in a discrepancy between your reported profits and actual cash reserves.   Bridging the gap To bring your financial statements closer to your actual financial situation, regularly review your debtors. Vigilance in following up payment requests and taking action for late payments is essential. Additionally, using a cloud-based accounting system to track transactions in real time can aid in timely decision making. Dealing with creditors and debtors Businesses often have customers who pay on credit, as well as suppliers who offer credit for purchases. This can lead to a time lag between the record of transactions and the actual monetary exchange, increasing the figures in your ‘Sales’ and ‘Cost of Goods Sold’ (COGS) categories while your bank account remains stagnant. Understanding COGS COGS represents the direct costs involved in creating or acquiring the goods you sell to customers. This includes the initial inventory, purchases made during a specific period, and the inventory left at the end of that period. Other costs like freight, storage, and factory overheads could also be included. The role of reinvestment and owner withdrawals In a bid to expand their operations, businesses often reinvest their profits. This reinvestment could take the form of increased stock, debtors, or capital expenditure. On the other hand, excessive withdrawals by the business owners can restrict growth and deplete cash reserves. It’s essential to set sound budgets for each owner to prevent drawing too much profit. Managing the financial aspects of a business venture is a complex and challenging task that requires careful attention to detail. By understanding the possible reasons for missing profits, navigating financial statements effectively, and addressing issues with debtors and creditors, entrepreneurs can bridge the gap between projected profits and actual cash reserves. Additionally, maintaining a balance between reinvestment and owner withdrawals is crucial for sustainable growth and financial stability. With vigilance, proper budgeting, and strategic decision-making, entrepreneurs can navigate the highs and lows of their business journey with confidence and success.   The Bottom Line Managing the financial aspects of a business venture is a complex and challenging task that requires careful attention to detail. By understanding the possible reasons for missing profits, navigating financial statements effectively, and addressing issues with debtors and creditors, entrepreneurs can bridge the gap between projected profits and actual cash reserves. Additionally, maintaining a balance between reinvestment and owner withdrawals is crucial for sustainable growth and financial stability. With vigilance, proper budgeting, and strategic decision-making, entrepreneurs can navigate the highs and lows of their business journey with confidence and success. Contact us for a deep dive into your financials.  

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Business Updates

Business Update – May 22 2024

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Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy. US small business sentiment rebounds in April U.S. small-business confidence increased in April and the share of owners planning to raise prices was the smallest in a year, but persistent labor shortages continued to exert cost pressures for owners, a survey showed on Tuesday. Are we getting a ‘hard landing’ after all? Is 2024 the year America gets the recession economists expected in 2023? It’s a growing concern. A “worse-than-expected” jobs report this month could signal an economic slowdown that “threatens to downshift the nation’s brisk economic growth,” said The Associated Press. Core inflation hit 3-year low in April—but remains well above historic target Inflation was less painful than expected in April, bolstering the case for the Federal Reserve to soon bring down interest rates as the U.S. economy tiptoes the path to a soft landing. Phoenix is beating the rest of the country on inflation — on paper anyway Consumer price increases in Arizona’s biggest city are within striking distance of the Fed’s 2% target. It’s largely thanks to cooling rents, which take awhile to turn up in federal data. IRS warns about more tax scams The IRS issued a consumer alert Tuesday about scams involving the fuel tax credit, the sick and family leave credit, and household employment taxes that it said have led thousands of taxpayers to file inflated refund claims. Who benefits from US tariffs on Chinese imports? Experts weigh in The trade war between the United States and China continued this week with its latest salvo – a move that comes amid a heated race for the White House. Small business optimism Small business optimism grew for the first time this year but inflation continues to be a top concern for business owners, data from the National Federation of Independent Business (NFIB) showed. IRS Interest rates The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2024. Podcast Episode of the Week Freakonomics Radio – Episode 584: How to Pave the Road to Hell the discussion revolves around the unintended consequences of well-intentioned policies. The episode explores historical examples and modern instances where efforts to solve problems inadvertently created new issues. It emphasizes the importance of considering potential negative outcomes when designing and implementing policies.  An example is the case of ethanol subsidies in the United States. These subsidies were intended to reduce carbon emissions and support the agricultural industry by promoting the use of ethanol as a biofuel. However, they led to unintended consequences such as increased food prices and questionable environmental benefits, highlighting the complexities and trade-offs in policy-making for business and environmental goals. Get in touch Contact us if you have any questions or want to discuss the next steps for your business.

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