accounting, audit, business advisory and tax services
Here’s what you need to know:
New Address: 655 Metro Place South, Suite 450, Dublin, OH 43017
Tentative Move-In Date: July 21st
No interruption to service is expected — we’ll continue supporting you every step of the way!
We’re excited about this new chapter and look forward to welcoming you to our new space soon!
In recent years, interest rates have increased and credit has tightened. Under these conditions, which are expected to persist in the coming months, securing a commercial loan can be challenging for businesses of all sizes. Whether you want to expand, stabilize your cash flow, or simply build a financial cushion, being loan-ready is more critical — and more complicated — than it’s been in the past.
Here are some steps to help increase the odds that a bank will approve your company’s loan application.
Banks aren’t just looking for strong numbers in today’s cautious lending environment. They also want transparency and consistency. That’s why financial statements prepared under U.S. Generally Accepted Accounting Principles (GAAP) are essential.
GAAP financials give lenders a clear, apples-to-apples view of your business’s performance. GAAP requires accrual-basis accounting. On the income statement, this means sales are recorded when they’re earned, and expenses are reported when they’re incurred — regardless of when cash actually changes hands. A GAAP balance sheet may include accounts receivable, accounts payable, prepaid assets, and accrued expenses. These accounts paint a complete, reliable picture of your business’s financial position.
If your financials aren’t already prepared in accordance with GAAP, it’s worth investing the time (and potentially enlisting outside help) to get them there before you apply for financing. GAAP financials could make all the difference.
Lenders use your financial statements to calculate key ratios and compare your business against industry benchmarks and its historical performance. Some ratios underwriters may scrutinize include:
Your business will stand out if its financial performance reflects solid asset management, profitability, and growth prospects. If there are red flags — such as low profits, aging receivables, or high debt levels — have a detailed explanation and an improvement plan.
Today’s lenders want a complete picture of your business operations, leadership, and future strategy. Be prepared for in-depth due diligence, including:
Underwriters don’t just like to see that you’re currently profitable; they also want assurance that you’re building a resilient, well-run business that can repay the loans.
Additionally, you’ll need to explain how the loan funds will be used. Having a clear, realistic plan — whether it’s to expand your operations, invest in new equipment, increase headcount, or manage seasonal cash flow — can significantly boost your credibility. Vague or overly ambitious plans can sink your application, even if your financials look strong.
Securing a loan requires more than filling out a few forms. You need a clear financial story, reliable financial records, and a forward-looking business plan. We can help you apply for a business loan to position your business for success, even in tough times. Contact us to get the ball rolling.
With new tariff structures looming and global trade relationships in flux, businesses face rising uncertainty in supply chain costs and inventory planning. As countries iron out the details of future U.S. trade agreements, companies must proactively manage their inventory to avoid margin erosion and supply disruptions. Here are six smart strategies to help safeguard your operations.
Start by identifying where your inventory items originate — not just your direct suppliers, but the true sources of raw materials and components. Many small businesses purchase through intermediaries, such as distributors or service centers, making it difficult to spot exposure to higher tariff zones. Also, review tariff codes for your imports to ensure correct classification and identify potential opportunities for reclassification or exemptions.
After determining where items originate, evaluate their criticality, cost, and lead times. This assessment reveals your level of risk and highlights where disruption would have the greatest financial impact. A detailed supply chain map gives you the data needed to make informed decisions, whether diversifying suppliers or adjusting stock levels for sensitive items.
If tariffs threaten your current sourcing strategy, explore alternative suppliers in different regions or even domestically. But don’t make changes solely based on cost; ensure new suppliers meet your standards for quality, reliability, and speed.
If you rely on one or two suppliers for critical items, identify a mix of potential suppliers in different geographical regions. Having multiple partners lined up provides flexibility if one region becomes economically unfavorable. For example, a contractor who relies on imported electrical components could benefit from developing relationships with U.S.-based distributors, even at a premium, to ensure business continuity. This dual-sourcing approach may add resilience and open the door to competitive pricing negotiations.
Solid supplier partnerships are more valuable than ever. Transparent communication helps you stay ahead of inventory delays or pricing shifts. Suppliers may also provide early warnings on tariff impacts or offer better terms to long-standing customers. Building trust now can give you access to more favorable pricing, priority fulfillment, or flexibility in challenging times.
Don’t just talk business — build strategic alliances. Offer forecasts, discuss contract extensions, and explore vendor-managed inventory models for shared efficiency gains.
Keep close tabs on your supply chain partners. If tariff increases appear imminent, consider purchasing key inventory before they take effect. While this ties up working capital, strategic stockpiling can save costs and protect against supply disruptions. Prioritize high-impact items with long lead times or few substitutes. However, consider increased storage costs and potential obsolescence when expanding inventory levels.
Another option is locking in long-term pricing contracts. This can be especially effective if you negotiate fixed rates or volume-based discounts.
With uncertainty swirling, many businesses hesitate to raise prices in the hope that the “trade wars” will cool off soon. But absorbing higher input costs indefinitely can strain your cash flow. Monitor competitor pricing strategies and be transparent with your customers if adjustments are needed. Consider tiered pricing models, pass-through clauses, or surcharges tied directly to tariff fluctuations to maintain trust.
Simultaneously, revisit your internal cost structure to help preserve margins. This could include streamlining packaging, reducing waste, optimizing warehouse layouts, and renegotiating freight contracts.
Bringing more production or fulfillment in-house may insulate you from global risks, but labor shortages and costs are valid concerns. Automation and AI tools can offer a competitive edge by increasing output without a proportional rise in headcount. Even smaller-scale investments, such as automated inventory tracking or demand forecasting software, can reduce manual errors and improve agility.
Whatever course you take, ensure it’s guided by data and long-term business goals, not impulse. We can help you create financial models that forecast the impacts of different scenarios and guide you toward cost-effective, sustainable decisions. Contact us for more information.
Suppose you’re thinking about setting up a retirement plan for yourself and your employees. However, you’re concerned about the financial commitment and administrative burdens involved. There are a couple of options to consider. Let’s take a look at a Simplified Employee Pension (SEP) and a Savings Incentive Match Plan for Employees (SIMPLE).
SEPs are intended to be an attractive alternative to “qualified” retirement plans, particularly for small businesses. The appealing features include the relative ease of administration and the discretion that you, as the employer, are permitted in deciding whether or not to make annual contributions.
If you don’t already have a qualified retirement plan, you can set up a SEP just by using the IRS model SEP, Form 5305-SEP. By adopting and implementing this model SEP, which doesn’t have to be filed with the IRS, you’ll have satisfied the SEP requirements. This means that as the employer, you’ll get a current income tax deduction for contributions you make on your employees’ behalf. Your employees won’t be taxed when the contributions are made, but will be taxed later when distributions are received, usually at retirement. Depending on your needs, an individually-designed SEP, instead of the model SEP, may be appropriate for you.
When you set up a SEP for yourself and your employees, you’ll make deductible contributions to each employee’s IRA, called a SEP-IRA, which must be IRS-approved. The maximum amount of deductible contributions you can make to an employee’s SEP-IRA in 2025, and that he or she can exclude from income, is the lesser of 25% of compensation or $70,000. The deduction for your contributions to employees’ SEP-IRAs isn’t limited by the deduction ceiling applicable to an individual’s contributions to a regular IRA. Your employees control their individual IRAs and IRA investments, the earnings on which are tax-free.
You’ll have to meet other requirements to be eligible to set up a SEP. Essentially, all regular employees must elect to participate in the program, and contributions can’t discriminate in favor of highly compensated employees. But these requirements are minor compared to the bookkeeping and other administrative burdens associated with traditional qualified pension and profit-sharing plans.
The detailed records that traditional plans must maintain to comply with the complex nondiscrimination rules aren’t required for SEPs. And employers aren’t required to file annual reports with the IRS, which, for a pension plan, could require the services of an actuary. The required recordkeeping can be done by a trustee of the SEP-IRAs, usually a bank or mutual fund.
Another option for a business with 100 or fewer employees is a Savings Incentive Match Plan for Employees (SIMPLE). Under these plans, a SIMPLE IRA is established for each eligible employee, with the employer making matching contributions based on contributions elected by participating employees under a qualified salary reduction arrangement. The SIMPLE plan is also subject to much less stringent requirements than traditional qualified retirement plans. Or, an employer can adopt a SIMPLE 401(k) plan, with similar features to a SIMPLE IRA plan, and avoid the otherwise complex nondiscrimination test for traditional 401(k) plans.
For 2025, SIMPLE deferrals are allowed for up to $16,500 plus an additional $3,500 catch-up contribution for employees age 50 or older.
As you can see, SEP and SIMPLE plans offer unique advantages for small business owners and their employees. Neither plan requires annual filings with the IRS. Contact us for more information or to discuss any other aspect of your retirement planning.
Once your 2024 tax return is in the hands of the IRS, you may be tempted to clear out file cabinets and delete digital folders. But before reaching for the shredder or delete button, remember that some paperwork still has two important purposes:
Your filed tax returns are the cornerstone of your records. But what about supporting records such as receipts and canceled checks? In general, except in cases of fraud or substantial understatement of income, the IRS can only assess tax within three years after the return for that year was filed (or three years after the return was due). For example, if you filed your 2022 tax return by its original due date of April 18, 2023, the IRS has until April 18, 2026, to assess a tax deficiency against you. If you file late, the IRS generally has three years from the date you filed.
In addition to receipts and canceled checks, you should keep records, including credit card statements, W-2s, 1099s, charitable giving receipts, and medical expense documentation, until the three-year window closes.
However, the assessment period is extended to six years if more than 25% of gross income is omitted from a return. In addition, if no return is filed, the IRS can assess tax any time. If the IRS claims you never filed a return for a particular year, a copy of the signed return will help prove you did.
The tax consequences of a transaction that occurs this year may depend on events that happened years or even decades ago. For example, suppose you bought your home in 2009, made capital improvements in 2016, and sold it this year. To determine the tax consequences of the sale, you must know your basis in the home — your original cost, plus later capital improvements. If you’re audited, you may have to produce records related to the purchase in 2009 and the capital improvements in 2016 to prove what your basis is. Therefore, those records should be kept until at least six years after filing your return for the year of sale.
Retain all records related to home purchases and improvements even if you expect your gain to be covered by the home-sale exclusion, which can be up to $500,000 for joint return filers. You’ll still need to prove the amount of your basis if the IRS inquires. Plus, there’s no telling what the home will be worth when it’s sold, and there’s no guarantee the home-sale exclusion will still be available in the future.
Other considerations apply to property that’s likely to be bought and sold — for example, stock or shares in a mutual fund. Remember that if you reinvest dividends to buy additional shares, each reinvestment is a separate purchase.
If you separate or divorce, be sure you have access to tax records affecting you that your spouse keeps. Or better yet, make copies of the records since access to them may be difficult. Copies of all joint returns filed and supporting records are important because both spouses are liable for tax on a joint return, and a deficiency may be asserted against either spouse. Other important records to retain include agreements or decrees over custody of children and any agreement about who is entitled to claim them as dependents.
To safeguard records against theft, fire, or another disaster, consider keeping essential papers in a safe deposit box or other safe place outside your home. In addition, consider keeping copies in a single, easily accessible location so that you can grab them if you must leave your home in an emergency. You can also scan or photograph documents and keep encrypted copies in secure cloud storage so you can retrieve them quickly if they’re needed.
Contact us if you have any questions about record retention. Thoughtful recordkeeping today can save you time, stress, and money tomorrow.
