Tag: businesses

What Companies, Including Small Businesses, Need To Know About A New Federal Law

Starting Jan. 1, 2024, many companies will be required to report information to the U.S. government about who ultimately owns and controls them. It’s the result of a 2021 law, the Corporate Transparency Act—or CTA—which requires reporting companies to file reports with FinCEN, the Financial Crimes Enforcement Network. The form isn’t yet available, but FinCEN has been rolling out guidance—including new information posted as of Dec. 12, 2023. Here’s what we know so far.

Who has to report?

Companies required to report are called reporting companies. Your company may be a reporting company and need to report information about its beneficial owners if your company is a corporation, a limited liability company (LLC), or other entity created by the filing of a document with a secretary of state or any similar office in the U.S., or a foreign company formed under the law of a foreign country that has registered to do business in the U.S. by filing of a document with a secretary of state or any similar office.

A domestic entity like a statutory trust, business trust, or foundation is a reporting company if it was created by filing a document with a secretary of state or similar office. The specifics of whether certain entity types, such as trusts, require filing a document with the secretary of state or similar office to be created or registered depend on state law.

Is a sole proprietor a reporting company?

No, unless a sole proprietorship was created (or, if a foreign sole proprietorship, registered to do business) in the U.S. by filing a document with a secretary of state or similar office. A good rule of thumb? A company qualifies as a reporting company if it was created (or, if

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BC credit union offers cannabis businesses pre-approved cards

Big banks still treat cannabis-sector entrepreneurs differently than counterparts in other sectors.

Big banks still treat cannabis-sector entrepreneurs differently than counterparts in other sectors, but the ability to conduct banking is slowly getting better.

Community Savings Credit Union today said that it is launching pre-approved business credit cards for its members who operate cannabis-related businesses. 

“This industry-first offer finally gives cannabis businesses in B.C. guaranteed access to credit cards, a long overdue change in the financial services available for the industry,” the credit union said in a news release.

Many business people involved with legal cannabis-related businesses are rejected by credit-card providers because they are active in the industry. 

Community Savings Credit Union CEO Mike Schilling told BIV last fall that he sees advocating for changes to cannabis legislation as his duty, which is why he went to Ottawa to speak at an industry summit, and meet with political staff in the prime ministers’ office and the office of the minister of finance. 

His Surrey-based, seven-branch credit union, which has about $900 million in assets under management, has more than 17,000 members, including 150 that are cannabis-sector companies, he said at the time.

“Cannabis businesses have been forced to operate without a fully functioning banking system for too long,” he said today. “The industry was legalized five years ago, but big banks have ignored this sector’s needs and credit unions like Community Savings have stepped in.”

Community Savings offers three business credit cards. One is its No Fee Cash Back Visa, which allows customers to earn cash back when purchases are made. Another is its Visa Low Rate Business Card, which charges an annual fee and has a comparatively low interest rate, when monthly balances are not paid in full. It also has the Visa Infinite Business Card, which offers

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Electrifying Growth: surge in EV finance as businesses drive adoption

The take-up up of electric vehicles is booming across businesses of all shapes and sizes, with purchasers relying on incentives, lower running costs and the emergence of a secondary market to help offset a generally higher initial outlay.

Some businesses also report a strong sustainability motivation for their EV purchases, with the transport sector responsible for 19 per cent of the nation’s carbon emissions and EV growth considered to be vital to help meet decarbonisation targets.[1]

NAB Executive Business Metro and Specialised Julie Rynski

NAB executive business metro Julie Rynski said demand for EV finance had “soared” since last December when NAB introduced its business finance for green equipment product.

“The product has clearly made financing electric vehicles more attractive as many business owners look to electrify their fleet to reduce their carbon footprint and business costs,” Ms Rynski said.

“It’s part of our job to support customers on their transition journeys.

“And as Australia’s largest business lender and a leading equipment finance provider, we’re focusing on practical solutions – such as business finance for green equipment – to help businesses achieve their transition goals.”

The Electric Vehicle Council shows that Australian EV sales are rising rapidly, up more than 120 per cent in the calendar year-to-date to 8.4 per cent of all new cars sold compared to 3.8 per cent in calendar 2022.

NAB reports that business purpose EV sales unit growth in the bank’s September financial year ballooned 316 per cent[2] compared to the prior year – well ahead of the combined business and consumer national EV sales growth of 179 per cent and outpacing some of its key peers.[3]

As at September 2023, NAB provided more than 20 per cent of all finance for motor vehicle and equipment in Australia, providing a significant platform to help a

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A look at Black-owned businesses in the US by sector, state and more

The owner of Marcus Book Store, the oldest Black-owned bookstore in the U.S., talks with her employee about a shop display in Oakland, California, in December 2021. (Amy Osborne/The Washington Post via Getty Images)
The owner of Marcus Book Store, the oldest Black-owned bookstore in the U.S., talks with her employee about a shop display in Oakland, California, in December 2021. (Amy Osborne/The Washington Post via Getty Images)

More than one-in-five Black adults in the United States say owning a business is essential to financial success, according to a September 2023 Pew Research Center survey. While Black-owned businesses have grown significantly in the U.S. in recent years, they still make up a small share of overall firms and revenue, according to our analysis of federal data.

Pew Research Center conducted this analysis to examine the characteristics of Black-owned businesses in the United States. The analysis relies primarily on data from the 2022 Annual Business Survey (ABS), conducted by the U.S. Census Bureau and the National Science Foundation’s National Center for Science and Engineering Statistics.

The survey – conducted annually since 2017 – includes all non-farm U.S. firms with paid employees and receipts of $1,000 or more in 2021. Firms are defined as businesses “consisting of one or more domestic establishments under its ownership or control.” Majority business ownership is characterized in the survey as having 51% or more of the stock or equity in the firm. The Census Bureau counts multiracial firm owners under all racial categories they identify with; Hispanic firm owners may be of any race. Read more about the ABS methodology.

A bar chart showing that about 3% of U.S. businesses were Black-or African American-owned in 2021.

In 2021, there were 161,031 U.S. firms with majority Black or African American ownership, up from 124,004 in 2017, according to the latest estimates from the Annual Business Survey (ABS), conducted by the U.S. Census Bureau and the National Science Foundation. Black-owned firms’ gross revenue soared by 43% during this timespan, from an estimated $127.9 billion in 2017 to $183.3 billion in 2021.

Despite this growth, majority Black-owned

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The 201+ best Black-owned businesses to shop in 2024

There are over three million Black-owned businesses in the United States, according to the latest data from the Census Bureau, many of which are led by talented artists, chefs, hair stylists, parents and fashion designers. Over the past few years, we interviewed dozens of Black entrepreneurs to learn about the successes and challenges they face while running their companies, and most stress that they’ve had to overcome barriers like a lack of access to capital and higher rates of financial distress compared to white-owned businesses.

But along the way, they’ve established support networks that lift them up, including passionate, loyal customers who shop from them year round, not just during Black History Month, which takes place every February. That’s in addition to efforts from nonprofits like The Fifteen Percent Pledge, which is working to get more Black-owned brands on the shelves of major retailers nationwide.

Our guide of Black-owned businesses spans across shopping categories like beauty, home and kitchen, fashion and more. We’ve also confirmed that each company is at least 51% Black-owned, the threshold required to be considered a Black-owned business, according to the Census Bureau.

SKIP AHEAD Beauty brands | Clothing & accessories brands | Food & beverage brands | Home & kitchen brands | Baby and kids brands | Bookstores and educational brands | Health & wellness brands

Black-owned beauty brands

Absolutely Everything Curly

Owner Gaby L. Longsworth founded Absolutely Everything Curly with the desire to educate people about textured hair, hair products and ingredients. The company offers a handful of downloadable hair care guides via its website, including hair products for curly-haired kids and babies, hair oils and butters and frizz fighters. 

Alodia Hair Care

Alodia’s hair care products are  with non-toxic, organic and natural ingredients, says founder Isfahan Chambers-Harris. “Alodia was [created] out of

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Durbin outlines Credit Card Competition Act to Springfield businesses

Owning a small business is not easy and costly credit card fees are making it harder. That was a message heard repeatedly during a meeting Monday with U.S. Sen. Dick Durbin, D-Ill, who outlined proposed legislation that would increase competition and choice in the credit card network market.

Durbin met with small business owners in Springfield to explain his credit card competition act and discuss the business fees that merchants are forced to incur with every customer’s swipe. 

“Merchants and consumers pay $3.8 billion dollars in credit card interchange fees to line the pockets of the biggest Wall Street bank,” Durbin said. “These institutions raised those fees last October and plan another increase in April. Interchange fees are the second largest cost for many small businesses only behind operating costs. As a consumer, you don’t even know it exists.” 

More: Senator Durbin introduces billSenators Durbin, Duckworth introduce bill to expand boundaries of the Lincoln Home site

According to Durbin, Senate Bill 1838 the Credit Card Competition Act of 2023, or CCA, introduced in June would enhance credit card competition and customer choice to reduce excessive credit card fees which negatively impact businesses. 

“Every time you swipe a card, we are paying a minimum of three percent,” said Gordon Davis, co-owner of Whimsy Tea Company where the meeting and press conference with Durbin was held. “When you add on service fees and all that fun stuff, it can quickly jump up to seven-point-eight percent. That’s why Senator Durbin’s Credit Card Competition Act is so important, it gives us a choice.”

The legislation would require the largest credit-card-issuing financial institutions in the country — those with assets over $100 billion − to enable at least two credit card networks to be used on their credit cards instead of just one.

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More than 47,000 UK businesses on ‘brink of collapse’, warn insolvency experts | Recession

More than 47,000 UK companies are on the brink of collapse after a 25% jump in the number of businesses facing “critical” financial distress in the final three months of 2023, according to a report.

It marks the second consecutive quarter-on-quarter period when critical financial distress has risen by a 25%, the latest “Red Flag” report by insolvency specialists Begbies Traynor found.

The construction and property sectors accounted for 30% of all businesses facing critical financial distress.

The quarterly rate of increase in the number of companies facing critical financial distress grew by 32.6% in the construction industry, by 41.3% in health and education, a quarter in real estate and property services and 24% in support services.

Eighteen of the 22 sectors covered by the report recorded double-digit percentage growth in the number of firms whose finances have reached critical condition.

Julie Palmer, a partner at Begbies Traynor, said the tough macroeconomic conditions had created a “perfect storm” for UK businesses.

“After a difficult year for British businesses that was characterised by high interest rates, rampant inflation, weak consumer confidence and rising and unpredictable input costs, we are now seeing this perfect storm impact every corner of the economy,” she said.

The Bank of England raised interest rates from 0.1% at the end of 2021 to 5.25% to try to tame inflation. That has significantly increased the cost of borrowing for UK businesses, preventing many from papering over the cracks with cheap debt.

“Hundreds of thousands of businesses in the UK, who loaded up on affordable debt during those halcyon days, are now coming to terms with the added burden this will have on their finances,” Palmer added. “Sadly, for tens of thousands of British businesses who should be looking ahead with some degree of optimism, the new year will

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Eight in ten small businesses taking positive steps to strengthen their enterprises in 2024

morris jo 400

Eight in ten small business owners (81%) are planning to develop their companies in 2024. New research from Novuna Business Finance shows that over a third (33%) are focusing on new initiatives to increase income, whilst a fifth (20%) are looking to reduce their fixed costs.

With around nine in ten small businesses (89%) saying that they still feel the pressures from the cost-of-living crisis, there is an emphasis on increasing business income and sales this year across all sectors. Small businesses in the media and marketing sector were the most likely to say they are looking at new ways to improve their income and sales (52%), followed by small businesses in retail (42%) and IT and telecoms (40%).

Nationally, the top five initiatives small business owners are focusing on to secure growth include:

  • Increasing new business income/ sales – 33%
  • Reducing fixed costs – 20%
  • Diversifying the business, offering new service lines/ products – 18%
  • Planning ahead with business budgeting – 18%
  • Building up financial reserves – 17%

Across the UK, small businesses in the North East of England are the most likely to be prioritising particular strategies to strengthen their enterprise (89%), followed by small businesses in London (86%), and the South East (84%).

Small businesses in manufacturing and construction looking ahead

More than eight in ten (83%) small businesses in the manufacturing sector are looking to strengthen their enterprise this year, with one in five (21%) planning to diversify by offering new service lines or products to their consumers. A further 14% are planning to expand into new geographical markets.

Similarly, more than three in four small businesses (76%) in the construction sector are looking to grow this year, one in five (20%) are planning ahead by focusing on their business

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The Best Accounting Software for E-commerce Businesses in 2024

Choosing accounting software with the right features for an e-commerce operation will help your business’s finances. Here are some features you should look for in accounting software for e-commerce.

Bank Reconciliation

Bank reconciliation is the process of comparing your business’s books against your bank records. When done manually, this is a tedious and time-consuming process. However, many accounting software providers now provide tools that can quickly and accurately match your bank statements with invoices, bills, purchase orders, expenses and other transactions recorded in your business’s books.

Online Invoicing

Accounting software often includes invoice-creation features. For service-based e-commerce businesses, the ability to email a quote or invoice makes it easier to get paid. Leading providers, such as FreshBooks, also track when customers receive and view your requests for payment. Customization tools can be used to build professional-looking invoices that match your e-commerce business’s brand, which is important for appearing legitimate in the eyes of online consumers.

You are more likely to get paid on time when you send a professional-looking invoice.

Recurring Invoices

A subscription-based e-commerce business will appreciate the ability to send invoices at regular intervals. Many accounting software providers include recurring invoices on higher-tier plans.

Financial Reports

The data captured by accounting software can be used to generate a variety of financial accounting reports that provide insight into how your e-commerce business is performing. These include general ledger reports, profit-and-loss statements, balance sheets, receivables and inventory analysis, and more.

Inventory Management

E-commerce businesses that sell physical products often keep inventory off-site, which makes proper inventory management especially crucial. A few leading accounting software services also provide tools for tracking inventory, creating purchase orders and more.

For more complex inventory management needs, check out our guide to inventory management software.

Time Tracking

Many accounting software providers provide tools for tracking

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How Much do Small Businesses Spend on Advertising?

Small businesses are spending more on their marketing budget numbers. In fact, advertising expenses have gone up almost 4% in 2023 from the previous two years. Deloitte reports advertising budgets will make up about 13.6% of the total for these enterprises this year.

What is The Average Marketing Budget for a Small Business?

The average marketing budget for a small business varies depending on the industry, the size of the business, and the marketing goals. However, a good rule of thumb is to spend between 7% and 10% of your gross revenue on marketing. According to Salesforce, B2C companies should spend 15% of their revenue on campaigns. Hubspot reports the average spend for a business was 8.7% of total revenue last year.

For example, a small business with $1 million in annual revenue could have a marketing budget of $70,000 to $100,000. This budget could be used to cover a variety of marketing expenses, such as:

  • Advertising: This includes paid advertising on channels such as Google, Facebook, and Instagram.
  • Content marketing: This includes creating and distributing blog posts, articles, e-books, and other content that attracts and engages potential customers.
  • Public relations: This includes generating positive media coverage for your business.
  • Events and trade shows: This includes attending and exhibiting at industry events and trade shows.
  • Search engine optimization (SEO): This involves optimizing your website so that it ranks higher in search engine results pages (SERPs).

The specific marketing channels that you use will depend on your target market and your marketing goals. However, by investing in a solid marketing budget, you can reach more customers, generate more leads, and grow your business.

Here are some additional tips for creating a small business marketing budget:

  • Start by setting your marketing goals. What do you want to achieve with your marketing
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