Author: DigiSquid

The CARES Act Opens Floodgates to Free Money for Businesses

Monday, August 1st, 2022

The CARES Act has opened the floodgates to free money for businesses  Below are the basic details of loans available to businesses.  They are incredible unless regulations apply limits:

  • This new law lets any business borrow 2.5 months of payroll, benefits, interest on loans and lease payments.
  • The loan is made through a bank that is an SBA approved lender and is guaranteed by the SBA.
  • Loan Is nonrecourse to the borrower.
  • The loan is forgiven if you don’t cut back on staff and spend the money on the items listed above.
  • The debt forgiveness is tax free.
  • Any part not forgiven is 10 yr repayment.
  • The interest rate is capped at 4%.
  • There are no fees to get the loan. The SBA will pay the banks a 5% fee.

Many details to come.  The original CARES act was 273 pages long, the bill as finally passed by the senate was 792 pages long.  It will take time to learn what else it contains.


We are in business to help your business.  We suggest every business start to gather the information to apply for this forgivable loan.


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Preparing Your Business for the Effects of the Coronavirus – Emergency Business Planning

Friday, July 15th, 2022

Preparing Your Business for the Effects of the Coronavirus – Emergency Business Planning

With the rapid onslaught of the Coronavirus already disrupting business operations in the U.S., there are three ways you can face the future: panic, do nothing, or plan. As we work with business owners through these tough times, we know the best way to do this is to plan, making the situation under your control as much as possible.

By now you have probably read all the communication from your local, state and federal governments on how to prepare for the actual virus itself, and hopefully you are moving forward with those preparations. But what should you, as a business owner or responsible manager, do to prepare your business?

Assess the Impact on Your Business

The first step is to assess how the changing environment might affect your business. How will the virus affect the revenue and cash flow of your business? Not all businesses will see a revenue decline, and for others, the decline could be catastrophic. For some, it won’t be a question of getting or keeping the business, but labor shortages that might make it impossible to deliver your product or service. Consider these possibilities:

  • Sudden Drop in Demand – Many service businesses including restaurants, fitness and health clubs, and other services are already seeing a sharp drop in revenue as customers stay home. It will be made worse as authorities force businesses to close or operate for fewer hours, or as contracts from state agencies are stopped. If you are in the construction industry or a manufacturer, most likely you have contracts that will continue through the next months, so this might not be an immediate issue, or you might find yourself unable to perform to your contractual obligations through limitations in your workforce.
  • Sudden Increase in Demand – Some businesses are seeing huge increases in demand like supermarkets and resellers of products needed at home, and of course, suppliers of medical products. This could hit manufacturers as well if their competitors can’t deliver due to labor shortage or supply chain issues. Here, you’ll want to consider how to keep your existing customers happy, so they stay with you after the virus passes.
  • Labor Shortage – You will probably be affected by a drop in labor as workers are forced to stay home. The possibility also exists one of your employees is infected and your entire staff is required to be quarantined. To prevent this, you must be sure your staff is comfortable with staying home when they feel ill. This could be an issue if your company has a very authoritative management style and your employees are afraid to be honest with you. You might want to coach your employees to practice social distancing while they are not at work. Additionally, your workers might be afraid to come back to work for fear of getting the virus.
  • Supply Chain – If you are a manufacturer, you’ll need to assess the supply of all of your component parts. Some companies are already experiencing shortages of critical parts. If you resell products from other suppliers, you will likely have similar problems, requiring you to be resourceful
  • Long Term Impact – If the situation continues for many months, the long term impact will be hard to predict – but in this situation, the possibility of this lasting a long time is high.

Create an Emergency Disaster Plan

Once you have a plan, if you are facing a sudden drop in demand and a steep revenue decline, it’s time to plan for action NOW. The immediate impact of actions to mitigate the spread of the virus will probably last 6-12 weeks or longer, and your first task is to preserve cash to make it through the lean times. Make three different plans for a 10%, 25%, and 50% or more reduction in business – or “slowdown”, “significant drop” and “disaster”. If you see your revenue decline hit one of those targets, enact the plan accordingly to that category. Consider these steps in each of the plans:

  • Identify Non-Essential Expenses – Depending on the size and complexity of your business, access to reliable financial data about your business is critical. You will need to quickly identify and stop all non-essential expenses to preserve cash as soon as possible.
  • Defer any discretionary capital expenditures until the acute illnesses caused by the virus are in decline. Some projects are such that sustaining a delay will have a significant negative cost impact. On the other hand, with the federal funds rate now at zero, banks will be able to lend at historically low rates, so it may be a good time for capex. Projects with high net present value (strong justification) should be pursued, but projects with borderline justification should be delayed.
  • Delay payments to vendors where possible and ask key suppliers for help – they might extend additional credit or give you more time to pay.
  • Talk to your Bank – When the entire economy tanks, they are in trouble too. Be assured, they are working with the government to minimize the impact on their bottom line and they are fully prepared to listen to your needs. They might delay installments, cancel interest payments or provide cheap bridging loans.
  • If you run a non-profit, reach out to all donors and volunteers and ask for additional assistance to get your organization through – and be specific in the ask.
  • Essential Expenses – Decide which essential expenses need to be cut in order of importance and cut them in that order when you have to.
  • Employees – Plan for movement of essential employees to virtual, at-home work assignments or part time. If layoffs are necessary, stack rank your employees based on their criticality to maintaining operations.
  • Contact your suppliers – To understand the impact on your business, it is essential to know where your suppliers stand. Have they stopped or decreased production or has demand for their products increased to the extent that you might face shortages? Consider logistical challenges as distributing products is typically not a stay-at-home job.
  • Contact your customers – As much as you need to know the status of your suppliers, your customers have the need to understand your situation. In times of crisis, customer-centric organizations make a difference and will be remembered.
  • Reassure Employees – Be open and communicate your plans with your employees. They dread nothing more than uncertainty.
  • Avoid Travel – Avoid travel if possible. This is the time of year when there are lots of industry meetings but getting on a plane or staying in a hotel right now is a risky proposition. Look for opportunities to meet suppliers and customers virtually. Get out front in communicating with your customers to reassure them of the steps you are taking to keep them whole through this crisis.
  • Use Time to Work On Your Business – Work on the gaps in your business during the slowdown so you can come out stronger when it’s over.
  • Pivot to New Realities – Think about any way your business can pivot to take advantage of the new realities. There will be fundamental changes in the way we do business moving forward, and only the agile will capitalize on them.
  • Get Advice and Help – Discuss and develop these plans with outside help – your business coach, peer advisory board or other business mentors should help you identify areas to focus on – especially trusted advisors already familiar with your business.

Take Appropriate Action

Now that you have a plan, you must commit to taking action. Any additional delays will cause your cash to run out sooner, putting the long term health of your business in jeopardy. Hard decisions may be necessary to save your business.

Finally, discuss the potential impacts with your key advisors – your business coach, accountant, or fellow business owners. By having the discussion, they will give you essential ideas you might not have considered. By sharing their expertise and unique perspectives with each other, they simply increase their chances of success.

Tax Implications

The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns has been extended from April 15 to July 15, 2020.   All details and updates are available here:

For more inquiries or assistance on emergency business planning during the outbreak of the pandemic, please feel free to contact us. We are here to support and guide you through these challenging times.

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How to Build a Strategic Plan and Engage Employees for Business Success

Friday, July 1st, 2022

Building success requires both a plan and engaged participants — like your employees and staff. Crafting a success plan begins with a few fundamentals in business that foster success and encourage unity among those under your leadership.

Make Prudent Investments

Consider your time and energy to be your most valuable commodity; don’t invest your time just anyplace. Look for important and meaningful outlets toward your business goals that are worth your efforts. Prioritization is key in making prudent investments of your own time at work.

Become a Delegator

Learn to delegate effectively and, as a leader, hand-off tasks that are high effort and low benefit to the team’s goals, overall. While you may not be able to skip these tasks altogether, don’t waste your time on them. Give these projects to team members that are industrious and looking for additional challenges during the workday. Delegating also sends the message to the team that you trust them and need them, which can improve morale and overall success, subsequently.

Start the Day with a Plan

Make a tactile plan each-and-every day. Start the day by reviewing the list, that you have started the day before. Break larger jobs down into manageable tasks and give yourself some of these chores daily to work toward getting the larger project accomplished. Be realistic though about time restrictions and your busy schedule.

Foster Focus

If you want to make progress toward your priorities and goals, eliminate the din and distractions that can waste valuable time throughout the day. Give yourself uninterrupted time to work on these projects and review the team’s progress toward goals by setting a timer and avoiding calls and online detours during the exercise. This can be tough but setting 30-minute time periods can result in a lot of progress toward outlined goals by the end of the week, month, and year. Without the added energy of multi-tasking, you will fly through tasks and activities.

Take Your Time

Always take the time to review and evaluate the progress that you and your team are making toward goals. Never be too busy to reflect and revisit instances that may be vital to meeting certain milestones or markers. Provide positive affirmation and honest feedback to your team so that individuals may find ways to improve performance, while also making their own job easier in many instances.

Give Yourself Room to Improve

Nobody is perfect and even the best-laid plans can sometimes falter. A good leader understands that there is always room to improve and it pays to continually come up with fresh strategies for success, whether this is new marketing campaigns, inventive incentive programs, or innovative tactics to find talent for the company. Give yourself measurable goals including priorities and accomplishments on a daily calendar or planner.

When it comes to small business accounting, rely on the industry experts at BMH Accounting, with multiple locations in South Florida. The team of qualified accounting professionals at BMH provide monthly accounting, bookkeeping, tax planning, and payroll services for businesses, brands, and entrepreneurs in the area. For more inquiries or assistance with your business plan. Feel free to contact us or call today.

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Discover the Perfect Client

Wednesday, June 15th, 2022

Who is your company’s perfect client? Tapping into the demographic that your product or service best-serve can help create a loyal consumer base that provides potential patrons for years to come. Not to mention, satisfied clients and customers are the best kind of advertising with positive reviews and word of mouth. Narrowing in on your loyal target audience will involve profiling and finding the perfect fit for what you offer, which takes research and marketing strategies.

Discover the perfect clients for your company, business, or brand, with these tips:

Know What you Do

Before you can recognize your ideal consumer and target audience, you need a full understanding of what you are selling. Watch, listen and observe to determine how your product or service is being used by your customers and measure changes in buying habits or patterns over time. Be an expert when it comes to conveying what you do.

Obtain Honest Feedback

In order to determine who and how your product is being used, you need to get feedback from your buying audience. This may be achieved with surveys or other tools and through offering promotions and rewards for participation. Follow-through will be impeded if there are technical issues or glitches so make sure that you choose a platform that will work smoothly for your reviews. Know that preferences, interests, and opinions can change over the course of time so survey and engage your buyers regularly. Social media is another platform that makes it easy for customers to reach you and share their experiences. This inside information can better help you find the client that is perfect for your product or service.

Stay Relevant and Current

Always update information pertaining to your consumers and keep your contact list of clients current. Maintain a simple spreadsheet or database with contacts, promotions, and campaigns- as well as the outcome and conversion rates of these efforts. A thorough and accurate customer contact list is gold; maintain and protect it.

Find your Audience

Go a little deeper to differentiate potential patrons from perfect clients by finding out a bit more about them. For instance, information pertaining to gender, job, and interests can help point to whether they are a good fit for what you offer. The more information you can elicit, the more streamlined and accurate you can make marketing efforts in an attempt to lure them from rivals or competitors offering similar goods or messages.

Target your marketing efforts toward your perfect clients with these tips. Got other business-related questions? Rely on the industry experts at BMH Accounting, with locations across South Florida. BMH Accounting specializes in serving the needs of small businesses with monthly accounting, bookkeeping, tax planning, and payroll services.  Call to learn more today.

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Know Your Tax Obligations to Ensure Your Business Remains in Good Standing

Wednesday, June 1st, 2022

Every business, no matter how small, has several tax obligations that it must meet. This includes taxes at the federal, state, and sometimes local level along with payroll taxes. At BMH Accounting, we understand that keeping track of so many obligations can be challenging. However, doing so is essential to avoid fines and possibly other sanctions from the Internal Revenue Service (IRS) and your state or local governments.

In terms of withholding from employee paychecks, you must deduct federal tax, state tax if applicable, social security, and Medicare. Below we outline how to determine your tax obligation at both the federal and state levels. Before you arrange to pay any taxes, however, you must first choose your tax year.

How to Choose the Tax Year Most Appropriate for Your Business

Choosing a tax year to coincide with the 12-month calendar year is the most common among business owners. This typically works well for companies without special accounting situations that would require the business owner to choose another alternative. If your accounting cycle doesn’t end on December 31, using a fiscal year instead of a calendar year will work better for you. If you have a special situation such as operating your business only part of the year due to starting or stopping it, you should select a short tax year for your filing status.

Federal Taxes

The type of structure you choose for your business determines the categories of taxes you pay and how much you pay for them. You may be subject to one or more of the following types of federal taxes:

  • Employer tax: This covers specific payments you must make such as contributing to the workers’ compensation and federal unemployment programs.
  • Estimated tax: As a self-employed business owner, you must make estimated quarterly tax payments to the IRS.
  • Excise tax: The IRS only charges this on specific services or goods such as alcohol and tobacco.
  • Income tax: This is the amount of federal tax withheld from employee paychecks based on their income and number of exemptions.
  • Self-employment tax: People who employ themselves are subject to the full amount of social security and Medicare, currently 12.4 and 2.9 percent.

State Taxes

Each state creates and enforces its own rules regarding employment taxes. If your state collects these taxes, the types and amounts you pay will depend on your business structure and physical location. If you’re a sole proprietor, for example, you will pay state taxes via estimated payments and include your income and expenses on your personal tax form. Corporations, on the other hand, pay taxes as a separate entity from the people who own the business.

Get Help with Proactive Tax Planning and Meeting Your Tax Obligation

BMH Accounting is available now to assist your small business with a tax planning strategy to reduce your tax burden and gain a better understanding of the tax obligations you face. Please contact us today to request your initial consultation.

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