Technology, Millennials and Trump Will Impact Small Business Cash Flow
by Kathleen Hoffelder, content editor, NJCPA –
June 19, 2017
Gene Marks, CPA, author, columnist and business owner of The Marks Group, said technology, the Trump administration, and Millennials – not in any particular order— will affect small business decisions over the next four years at NJCPA’s 2017 Annual Convention in Atlantic City.
Marks reminded the crowd of CPAs and other financial professionals that businesses should “be prepared,” as the Boy Scout motto goes, so they are ready, willing, and able to do what is necessary in any situation that comes along. Though that may be easier said than done, the message was clear – business leaders need to always be looking ahead. “The smart business leaders are thinking about 2018 and 2019 right now,” he said.
Eye on Technology
Small businesses can benefit from keeping up with three technology trends that will impact them in the coming years, said Marks. These include: having up-to-date human resources platforms, using accounts payables automation, and having on online back-up technology.
Trump and Taxes
Despite the uncertainty regarding taxes with the Trump administration, Marks pointed out some very simple tax protocols can be followed to keep small businesses running smoothly. Revisiting the research and development (R&D) tax credit, for one, can help companies save money. Lots of companies are using this, he added. Additionally, firms need to “clean up” their receivables ledger to make sure they are paid on time.
Socially-conscious firms and those that exhibit flexible work environments are the most attractive to getting and keeping millennial employees, according to Marks. Firms that offer perks and other amenities, such as education, considerable paid time off, and good healthcare are the most attractive to building staff that are Millennials. Healthcare, for example, is the top requested benefit for this generation, said Marks.
Small businesses, in particular, he said, could benefit from improving their healthcare options to all employees, not just Millennials. A level funded plan, which is a hybrid structure that consists of both group insurance and self-insurance is an attractive route, he said. For the first $200, for example, an employee would have to pay out of pocket, but anything over that amount, the firm’s group insurance kicks in. “Firms are paying less in health insurance with a level funded healthcare plan,” he noted. Health savings accounts (HSAs) are also “hugely popular” this year, according to Marks.