February 2024 Newsletter
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February 2024

Growing your business is definitely a good thing, but there are some situations that may cause headaches if not handled properly. In this edition of the Tax & Business Letter, learn about several questions you should ask yourself before expanding your business.

Also find out how to protect your business with a smart email policy.

As always, please reach out with any questions and forward this information to anyone who may find it of value.

Upcoming dates
  • Reminders
  • Organize filing records (1099s, 1098s, W-2s, etc.)
  • Schedule tax appointment for drop off or meeting
  • Begin tax planning for 2024

3 Questions to Ask Before You Expand Your Business

Your business is profitable, and the demand is strong for your services. The future looks bright. As you create your business plans, expansion should readily be considered in your future. As you navigate the right path for your business, here are three questions to consider.

  1. 3 Questions to Ask Before You Expand Your Business imageHow will you finance the expansion? Expansion costs could include increased inventory, a larger facility and more equipment. After assessing your current financial situation, you may determine cash on hand can cover some or all of these costs. If not, you might be able to raise the required cash by tightening your receivables cycle along with improved collections. Perhaps your vendors will offer flexibility in extending payment terms and credit availability to ease cash flow problems caused by upfront costs of growth.

    If additional financing is required, think about your comfort level with taking on debt or giving up part of your equity. Balance emotional aspects with the realization that prudent borrowing can benefit your business by providing liquidity to grow your income. Likewise, investors who supply cash in return for a stake in your business may also be a source of sound advice and managerial guidance.

    Action: Remember your finance options can vary greatly, as you can finance through operations, traditional banks, equity partners or private loans. The options vary tremendously, but access to these options will often depend on the work you've done to make your financials look attractive to these money sources. So build strong financials now.
  2. Will you need additional staff? Payroll can be expensive and paperwork intensive. But sales, marketing, business development, operations and administrative tasks will expand along with your company. Make a realistic judgment of how much of the increased workload you’ll be able to handle yourself. Remember that the right personnel can boost sales and add to the bottom line. Alternatively, hiring temporary or part-time employees and independent contractors can keep you from becoming overwhelmed while holding costs in check.

    Action: Cultivate business contacts and joining industry associations are inexpensive ways to tap expertise. Outsourcing functions such as website maintenance or marketing gives you access to professional skills.
  3. Will the benefits outweigh the costs? Financial projections can help you determine whether sales and profits will make the expansion worthwhile. But also take into account why you started your business and what customers expect from you.

    Providing personalized service may prove difficult as your business grows, making customers unhappy. Yet choosing to remain static exposes you to the risk of competition from larger companies or losing customers as their needs outgrow your capabilities.

    Action: Consider creating a return on investment worksheet for each opportunity. The result will provide an estimated range of financial return, but should also be an exercise to honestly view the resource commitment.

Expansion decisions present both opportunities as well as challenges. Call today for help planning for success as you’re working through the financial steps of growing your business.

3 Questions to Ask Before You Expand Your Business Image
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Protect Your Business with a Smart Email Policy

Protect Your Business with a Smart Email Policy imageWith an estimated 362 billion emails sent and received each day worldwide, electronic communication is clearly an essential business tool. But in the same way email makes business more efficient, all those data packets traveling in and out of your company’s email system pose potential risks to your business.

Here are some reasons why your business should have an email policy, along with some ideas for implementation.

Why you need an email policy

  • Protect your business. While leaks of your company’s confidential or proprietary information via employee email are always a danger, messages carelessly worded that create legal headaches for businesses are more common. A recent study showed that nearly one in four outgoing emails contains content that pose legal, financial or regulatory risk for your business.
  • Promote a positive work environment. If your employees treat writing and sending emails as a serious matter, email missteps are much less likely to occur.
  • Increase in employee productivity. Using email for non-work reasons can be a distraction for employees. Implementing an email policy can help employees focus more on their job.
  • Showcase a uniform look and feel. Using consistent fonts, color and branding helps establish your business’s image in the eyes of customers, vendors, and other people outside of your organization. An email policy can communicate what fonts, colors, and images should be used in emails.

Crafting your email policy

Here are some ideas to consider including as part of your email policy. Once you create a first draft, have your legal team review it, then work to monitor compliance within your organization.

  • Notify employees that the email system is the property of the company and may be subject to monitoring at the company’s discretion.
  • Require that personal emails be sent only from employees’ personal accounts, from their personal devices, and not from a business email address on the company’s computer. By the same token, employees should not use their personal email accounts to send messages related to the business.
  • Explain best practices for avoiding scams and thwarting cyberattacks, including not clicking on links or downloading documents from unknown senders.
  • Prohibit messages that are obscene, discriminatory, harassing or inappropriate, and clearly state the consequences for any violations.
  • Emails are never places to promise pricing or tax information. Purchase orders and tax returns are where this information belongs.

Instituting a comprehensive email policy is only part of an effective protection plan. Monitoring and enforcing those rules and periodic training for all employees are also essential components.

Protect Your Business with a Smart Email Policy Image
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As always, should you have any questions or concerns regarding your tax situation please feel free to call.

This newsletter is provided by

Robert A. Vance, CPA LLC
565 KINGS HWY E
FAIRFIELD, CT 06825
Phone: 203-384-1040  Fax: 203-384-1120
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www.ct-cpa.us


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