West Points

Thursday, January 27, 2011

Good Books and Tax Time...

by Heather Gurewitz

Mendocino Women's Business Center Director

I know that we talk a lot about book keeping and maintaining good finances a lot on this blog. Any guesses why? There are no words to describe the importance of numbers in a business. Tax time is quickly approaching, and with that, finances are on everyone's mind. I am already working with clients that are coming in with a number of interesting scenarios, which always lead me back to the same thing. If you don't understand your finances, you don't have control of your business.

Knowledge is key in this arena. If you are so fortunate that your business generates enough profit to hire a book keeper or CPA, that is fantastic, but this doesn't exempt you from managing these aspects of your business and at least knowing how they work. If you don't understand your books, how do you know the person you have entrusted them to, is doing them correctly? And let's be honest, we all have bad days and make mistakes, don't assume your book keeper or CPA is exempt from that.

On this point, the single most thing people seem to not understand is that: If you get audited and the IRS comes knocking at the door, no matter who else signed your tax return, you have the ultimate responsibility. It is yours, the buck stops here, etc. They won't take your book keeper's house, and they won't take your CPA's car. If you are not paying your taxes in the correct amounts and at the right times, YOU are the one responsible, and you are the one at risk to lose everything. And believe me, the IRS can seize a lot more than a bank or a collection agency. It is not the place you want to mess with.

So, it's your business, and (hopefully) your asset. That means that you had better be sure you know what your book keeper is doing, and you had better make sure that you have the information to keep yourself out of trouble. Speaking of which...

On February 8th from 10:00 am - 12:00 pm in both Ukiah and Fort Bragg, West Company will be hosting a semi-webinar, "TaxTalk" with Keith Hall, CPA and National Tax Advisor for the National Association for the Self Employed. Keith is a wonderful presenter that will be joining us for a live web presentation that will include: how to have an audit proof tax return, how to save money on your taxes, and changes to the tax code for 2010. I've seen Keith give this presentation in the past, and it is a must for anyone who is a sole proprietor or self-employed. He is not only very knowledgeable, but a great presenter. All participants get a free copy of "Schedule C from A to Z" co-written by Mr. Hall. The cost of the workshop is $25 and you can sign up online at www.westcompany.org. Don't wait space is limited and filling up fast!

Tuesday, January 11, 2011

There's a no-collateral working capital SBA loan for small businesses! Seriously?

Yes! Ever since the Jobs Bill passed back in September we have been receiving phone calls from clients and community members interested in the new funding available from the bill. Information has been slowly coming down the pipeline but finally, there is a new loan fund established and ready to help small businesses; the Community Express Loan Program.


The new Community Express Loan fund is available to both existing AND start-up businesses. It provides loans from $5,000 - $25,000*, collateral free with interest rates ranging from 7% to 8%. Additionally these loans can be processed as quickly as 4 week after the loan package is complete and submitted.

This is definitely the most flexible program I have seen since I have been working with businesses in the county, and it is a great opportunity for local businesses and start-ups.

Some of the eligible uses include:

• Hiring a new employee

• Purchasing Inventory

• Business construction up to $10,000

• Working capital

Note, though the funding is flexible in its use, it still requires a plan showing that you will be able to pay the loan back within the stated terms set. Additionally, there are some restrictions to the funds. For example, they CANNOT be used for businesses engaged in real estate, agriculture, fishing, medical facilities, mining, religion, or gambling. (see fact sheet link for full list)

West Company does not engage in lending for the SBA, but we do assist our clients through the process of developing their business plans and preparing loan packages. Additionally we offer classes to help business owners write their plans and learn the basic skills they need to be successful. We also maintain a relationship with both banks and alternative lenders to help our clients find the best loan option for their business. If you would like more information on consulting and classes available at West Company visit our website.

For more information on the Community Express Loan including what is eligible and ineligible, check out the Borrego Springs Community Express Loan Fact Sheet:.
*Note: Businesses located in Low Moderate Income (LMI) designated areas are eligible for up to $50,000.