11 Tips On Being Prepared If You’re A Business Owner In Hurricane Matthew’s Path

It is important, as a business owner, to be prepared for any tragedy that may hit. If you are located in an area that has a high chance of hurricanes here are some of the things you should do at the beginning of hurricane season.

  1. Make sure that your business is up to date with all building codes.
    • This is important because it will help you be better protected by insurance.
  2. Take pictures of the inside and outside of the building.
    • This will help you prove damage for tax credit and insurance claims.
  3. Back-up all computer files if you haven’t already.
    • Most systems will also be able to help you restore files after the storm hits.
  4. Gather all insurance policies, inventories and other important documents. 
    • Making copies of these documents is also a good idea, store them in more than one spot.
  5. Set up a storage facility in a safe area to store your important files. 
    • You can also have a moving company on stand-by to help transport things.
  6. If you have any company vehicles find a place to store them on higher ground. 

If a hurricane watch has been issued, these are some of the steps you should take to prepare for when it hits. 

  1. Tune in to local t.v. and radio stations for instructions and updates.
    • This is commonly the quickest way to get information about storms.
  2. Move any files and records away from windows and off of the floor. 
    • Putting files on top of a table or filing cabinet will lower the chances of them getting damaged.
  3. You can also cover files and equipment with plastic for extra protection. 
    • Saving as many peices of equipment as possible will save you money.
  4. Organize payroll early so that employees can get paid while banks are still open. 
    • This will help you feel better and your employees feel more secure.
  5. Let local authorities know that everyone has evacuated your building and if you have any type of security system. 
    • This will save them the trip if your alarm goes off and lets them focus on other areas.

 

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How Will The Election Impact YOUR Business?

As a business owner we need to be ready for the unthinkable. We may not know who will win the election in November, we may not know who will hold the power in congress, but we do know, with certainty, that if we plan for all possible outcomes, when it comes to being proactive in our business and taxes, we shall emerge victorious no matter the results. Instead of focusing on who we want to win, our focus should be on preparing for all outcomes. We need to be ready to implement and revise, if necessary, our business plans in accordance with who wins the election in November. We need to be proactive in reference to the business and tax changes the election results will bring. Here are some of the biggest tax changes that will occur depending on who is elected this coming November:

 

Donald Trump

Donald Trump’s tax plan focuses on significantly reducing the marginal tax rates not only on individuals, but on businesses as well. His plan also calls to increase standard deduction amounts to nearly four times the current levels.  Overall, his proposal would restrict many tax expenditures. These tax cuts would take effect at all income levels, although those with the highest-income households would receive the largest benefits in dollars and percentages. Over the first decade Trump’s plan would reduce federal revenues by $9.5 trillion, before added interest costs. Although his plan would increase the incentive to work, save, and invest, it is followed by very great spending cuts and it would increase the national debt by almost 80% of gross domestic product by 2036 which would offset some or all of the incentive effects of the tax cut.

 

Hillary Clinton

Hillary Clinton’s tax plan focuses on raising taxes on high-income taxpayers, revoking fossil fuel tax incentives, adjusting taxation of multinational corporations, and raising estate and gift taxes. Almost all of the tax increases in her proposal would fall on the top 1% of taxpayers. The marginal tax rates would rise which in turn would reduce the incentive to work, save, and invest. This increase would also cause the tax code to become more complex.  The taxpayers on the bottom 95% would see little to no change in their taxes. Clinton’s current tax proposal does not address a plan to cut taxes for low and middle-income families.

In order to be fully prepared for the potential changes in the tax code please contact Flint & Associates, A CPA Firm.

*This is not an endorsement for either candidate, political party, or tax reform plan.

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3 things you need to know if you’re a business owner affected by the Louisiana floods

  1. You need to know what insurance policies you have in place.
    • “Property insurance covers everything related to the loss and damage of company property due to a wide-variety of events such as fire, smoke, wind and hail storms, civil disobedience and vandalism. The definition of “property” is broad, and includes lost income, business interruption, buildings, computers, company papers and money.” https://www.sba.gov/managing-business/running-business/insurance/types-business-insurance
    • There are two basic forms of property insurance, all-risk policies and peril-specific policies. All-risk policies cover a large amount of incidents and perils except those that are noted in the policy. Peril-specific policies cover all of the losses from only the perils that are listed in the policy. Some examples of peril-specific policies are; flood, fire, and crime.
  2. Are you in the federal disaster relief zone?
    • “Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.”  https://www.irs.gov/uac/tax-relief-for-victims-of-severe-storms-flooding-in-louisiana
  3.  What questions you should ask your CPA.
    • How do I report losses of inventory, fixed assets, and real estate?
    • How do I recreate my lost records and receipts?
    • Do I qualify for any state or federal tax credits in regards to the disaster?
    • How do I report proceeds from the insurance company?
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