ranjan.254 – Page 14 – Snap Advisory

ONeill & Bergado on What “Open For Business” Means To The IRS

ranjan.254 / June 19, 2025

We’re seeing businesses across the nation acknowledge this week’s 9/11 day of remembrance in really special ways. It’s been 22 years already. Looking back, 2001 and 2020 are similar as stand-out turning points for America, albeit in different ways and for different reasons. As it relates to business, 2020 marked a new era of how Americans think about work. The Great Resignation, as it was conveniently coined by the word-spinners, spawned more than just droves of workers leaving their day jobs. They left and began starting their own businesses. In 2020, there was a 24 percent jump in new business formations, and 2021 boasted a 5 percent increase from 2020. And over 3 million business applications have already been submitted through July of this year (compared to 4.4M for all of 2019). The entrepreneurial vibe is still trending upward. If you’re reading this as a new-ish business owner or as one of those starting over from the beginning, let’s talk taxes. Specifically, you need to know when you can start counting your San Francisco Bay Area business expenses as tax deductions. ONeill & Bergado on What “Open For Business” Means To The IRS“If you are not embarrassed by the first version of your product, you’ve launched too late.” ― Reid Hoffman It might go without saying, but because I’m an accounting professional, it’s important for me to be clear at the outset of this discussion: you have to have launched your San Mateo business to deduct business expenses. This means you’re actively engaged in activities with the intention of making a profit. If you’re making hand drawn stationery as a creative outlet, “open for business” means you’ve got an Etsy seller page, active product listings, and orders coming in. If you’re exploring consulting as an alternative way to bring home an income without the responsibilities of managing a facility and a staff, “open for business” means you have a registered business entity, an online appointment portal, and an invoicing system that’s receiving payments. If you want to capitalize on your industry experience by teaching others, “open for business” means you’ve got a YouTube channel, a marketing plan that’s helping you grow, and an active ad account. These are all just examples, but all of these situations send the right signals of your business status to the IRS. Now, you don’t have to be a full-blown corporation or brick-and-mortar business from day one, but you do have to officially be “open for business.” (Here’s a checklist to consult to see if you’ve covered the start-up basics.) Because the IRS generally considers an activity a business if it’s conducted with a genuine profit motive and carried out in a businesslike manner. That’s harder to determine in today’s gig economy. So here are some of the things the IRS is looking at to differentiate your venture from a hobby so that you can deduct those business expenses with confidence: A note on that last point: if you’ve been at this for awhile, but your business activity consistently generates losses year after year, the IRS may question whether you’re truly in business to make a profit. To avoid this, aim to show a profit in at least three out of the last five years, or be able to demonstrate sufficient growth toward that end. If you can meet these requirements, not only are you “in business” for yourself, but the IRS will think so too. That means you can legally deduct those mounting start-up business expenses on your tax return. But, of course, in order to do so, you need to be keeping accurate records of your business expenses and profits (another key indicator the IRS will be watching for). Proper recordkeeping not only helps you manage your finances effectively but also demonstrates to the IRS that you’re serious about your San Francisco Bay Area business. Need help with that? Let’s talk about your current systems and how we can take care of this vital piece of business ownership for you:(408) 775-7790 For when you’re starting for the first time or starting all over again, Patti ONeill and Gale Bergado

Business Growth

Business Cash Advance: A Loan Alternative for San Francisco Bay Area Businesses

ranjan.254 / June 19, 2025

This year has been a less-than-fun rollercoaster in the world of finance. Well, good news on that front — no more recession bogeyman lurking under the bed, at least that’s what the Fed declared as they raised rates again last week. Doesn’t mean more interest rate hikes aren’t ahead or that inflation’s fully cooled, but things appear to be balancing out. Even with this silver lining, there are still some darker clouds hanging around when it comes to borrowing for your biz. It doesn’t mean you don’t have options, just that things are a bit tougher right now in terms of borrowing to get some extra cash. That’s one reason I’ve been talking more and more about loan alternatives with my San Francisco Bay Area clients. Because, even if it’s difficult, it doesn’t mean you should give up on finding new ways to expand your business and make improvements. You just might need to be a little more creative. I’ve got some ideas on that, but they’ll also depend on your particular situation. If you want some guidance on these matters, I’m here for you, :(408) 775-7790 Today I’d like to give you some details on a loan alternative that might help you circumvent the difficulties with borrowing right now, something called a business cash advance… Business Cash Advance: A Loan Alternative for San Francisco Bay Area Businesses“Put not your trust in money, but put your money in trust.” ― Oliver Wendell Holmes When your San Mateo company needs a little extra change, the first option you consider is probably loans: an infusion of cash that you pay back (if your credit’s good enough to get one in the first place). But a loan isn’t the only option for a cash infusion, though. There’s another option that comes with its own advantages… as well as disadvantages: a business cash advance (or a merchant cash advance, MCA for short). Let’s take a look and see if this is a finance option for your biz and if it is, what you’ll need to prepare for if you decide to take one. Banking on your future With a business cash advance (or MCA in this case), a financing company advances you a lump-sum amount of cash against your future revenue at, ostensibly, 0% interest. You agree on a fixed payback amount (aka the Purchased Amount) and have to immediately begin making frequent repayments — daily or weekly — until the advance is paid off. There’s no loan involved. The MCA company is taking a portion of your future credit and debit sales and charging you what’s called “a factor rate.” Let’s say you take a grand in advance and it comes with a 1.5 factor rate. The total amount you’ll have to repay is 1,000 dollars times 1.5, or 1,500 dollars. Obviously, these deals aren’t for every business; for some, they could be downright dangerous. But let’s look at the pros and cons, anyway. Yay for no regulations Credit is no factor. MCA companies are relatively unregulated, and one of the few advantages of that is they can make advances in unconventional ways — including ignoring credit ratings (though many MCA companies don’t). This can open a flow of capital if you’ve had trouble getting mainstream loans. You get cash fast. Unfettered by most regs, MCA companies can get you money in days. That’s a real boon if you have a deadline and the investment you want the money for will improve your bottom line to cover the business cash advance and its factor rate. (Be certain it will…) Watch out They get their cash fast, too. Just last year, the Federal Trade Commission said this in a news release aboutdefendants (who used “deceptive and illegal means to seize assets,” by the way) in one business financing case: “Typically, a merchant cash advance company will make daily withdrawals from the business’s bank account until the obligation has been met.” That means you won’t just get cash quickly, but you’ll likely have to shell it back out quickly, as well. There is, in fact, “interest.” Let’s say you have to pay off a 10,000-dollar advance at a factor rate of 1.3, or 13 grand. Let’s say the MCA company gives you three months to pay it back. That’s a 229% interest rate. Even if you stretch the payments to a year (12 months), that’s still 57% interest. Fees for missing a payment can also be steep, and there’s no benefit at all to you if you pay the debt off early. The future is unsure. Your advance is against your future sales. If those sales don’t happen, you still have to repay the amount. Defaulting is considered a breach of contract with the MCA company, opening the door to liens and collections on not just your business assets but potentially your personal ones as well. For real Let’s look at some actual MCA companies. With Credibly and Rapid Finance, you can get advances of upto the mid-six figures, but you have to meet minimums in time of operation, revenue, and credit score (conditions similar to many MCAs recently). With CAN Capital, you can get an advance of just four figures, though there is an administrative fee and the factor rate can hit 1.48. Libertas Funding offers advances of up to a mil, but only says its factor rates “vary.” If you get into an MCA and find it chewing up too much of your revenue — or, worse, you’re taking out more MCAs to pay off previous ones — there are mitigation methods. Please be careful before you ink one of these deals, and don’t go at it without having someone in your corner to crank the numbers and make sure whatever agreement you land will actually benefit you in the long run. Remember, we’re always here to offer support. Reach out any time: (408) 775-7790 Cheering on you and your business, Patti ONeill and Gale Bergado

Business Tax Planning

Why San Francisco Bay Area Married Owners Might Choose the QJV Route

ranjan.254 / June 19, 2025

Remember three years ago when you depended on Zoom for work meetings and virtual schooling for your kids? While you’re probably really grateful the second one isn’t a reality anymore, the first one still had its appeal (unless something like this happened). Working from home had its perks. In a stroke of irony, the company that enabled us all to work from home during the era of social distancing recently started requiring their employees to spend some time in the office. Time to swap sweats for slacks. Unless you and your spouse run your San Francisco Bay Area business together. In that case, your WFH options might be more flexible. But there are other considerations for married joint ventures beyond working location that I want to bring up today. As far as business ownership and marriage go, you can obviously have one without the other, but when you and your spouse team up to build a business together as co-owners, it’s a good idea to look at the implications of that — both in a relational sense and but also (for today’s purposes) in an entity structure sense as well. See what I mean below… Why San Francisco Bay Area Married Owners Might Choose the QJV Route “To get the full value of a joy you must have someone to divide it with.” – Mark Twain More than one married couple has taken their domestic success professional, working together to build a company. It’s an old story, and it can be a happy one – but it can also run afoul of tax law without proper planning. The IRS maintains that business partners should be filing a partnership tax return, period, the IRS Form 1065. A partnership that fails to file a 1065 (and a lot of married “co-workers” neglect to) risks penalties. Let’s look at those hefty fines – and a smart way for married owners to avoid them. The 1065 IRS Form 1065 is an annual tax return used to report the income, gains, losses, deductions, credits, and other information from a partnership. A partnership doesn’t pay tax on its income but passes through profits or losses to its partners, who include partnership items on their own tax returns. You file a 1065 on the 15th of every March, unless a holiday or weekend changes that deadline. Uncle Sam takes this form seriously: The penalty for failing to file a 1065 by the due date (barring “reasonable cause,” which is up to the IRS), is 220 bucks for each month up to 12 months multiplied by how many people were partners in the partnership during any part of the tax year for which the return is due. Plus up to a quarter of any taxes you failed to pay. That’s potentially pushing five figures that a partnership could owe simply because married owners thought “for richer or poorer” meant when they were in business, too. And a 1065 is only part of the onerous tax paperwork a partnership has to file annually. Is there no way around this? Three little letters The IRS generally considers a business jointly owned and operated by married owners as a partnership for tax purposes, meaning the couple must meet the filing and record-keeping requirements we just mentioned. Plus, married co-owners failing to file properly as a partnership might have been filing a Schedule C, “Profit or Loss From Business,” in just one of their names – meaning only one spouse gets credit for Social Security and Medicare coverage. Unless … they elect to have the business treated as a qualified joint venture. In the eyes of the IRS, a QJV is a joint venture that conducts a trade or business where the only members of the venture are a married couple who file a joint return, who both elect not to be treated as a partnership, and who both spouses materially participate in the trade or business or maintain a farm as a rental business without materially participating (for self-employment tax purposes) in the operation or management of the farm. A QJV includes only businesses that are owned and operated by spouses as co-owners and not in the name of a state law entity, such as a limited partnership or limited liability company. (LLCs can be qualified joint ventures only in community property states; extra tax forms may be involved in these cases, so check with us.) Spouses make the election on a jointly filed tax return, the IRS Form 1040 or 1040-SR by dividing all items of income, gain, loss, deduction, and credit between them in accordance with each spouse’s respective interest in the venture. Each spouse also files their own Schedule C or Schedule F (for farming). Pros and cons for married owners Pros: Easy tax filing is the obvious first one. Partnerships come with a lot of paperwork, such as the 1065 and a Schedule K-1 for each partner and their income, deductions, and so on. QJVs come with no additional forms. Spouses in a qualified joint venture also don’t generally need an Employer Identification Number (EIN). (Check with us if you had EINs already for a partnership.) In fact, the IRS started QJVs more than 15 years ago as a sensible answer to the tax agency’s suspicions that more married business co-owners were letting just one spouse take all the business income and file the Schedule C and Schedule SE (for taxes on self-employed income) just to make paperwork easier. The second major plus: the recognition of self-employment taxes paid. Pre-QJV, only that spouse who reported self-employment income (again, to save on paperwork) got credit for taxes paid and built their Social Security benefits for retirement. Cons: We mentioned that LLCs can’t be QJVs; in the latter, both spouses are sole proprietors in a jointly owned business. That means no shielding business entity between the owners and personal liability for the business. Co-owners in a QJV might also pay more in taxes because they don’t have a corporation’s tax-advantaged structure. For some (though certainly not all) spouses in business partnerships, the QJV can really be a lifesaver. Now,

Employee Benefits

Compensation Is Just the Start, San Francisco Bay Area Business Owners

ranjan.254 / June 19, 2025

We’re just over a month away from the MLB playoffs, and this year (like every year) has had its share of sketchy calls that fans and players have been unhappy about. While not everyone’s favorite summer pastime (the sports season that never ends still has more than two months of games to go), this summer there are seemingly more strike calls than ever happening beyond the diamond. UPS, Hollywood actors, and screenwriters, food service workers in Vegas, United Auto workers, LA city employees … even doctors in the UK are getting in on the action. And they’re striking over more than just compensation. The recent SCOTUS ruling makes way for businesses to sue unions for financial damages caused by strikes, but despite that extreme (and expensive) legal protection, many employers are understandably nervous. Now, most San Francisco Bay Area SMBs like you don’t have to worry about a mass walk-out like these major industries are experiencing, but you do have to deal with the issue of disgruntled employees who want better compensation, benefits, working conditions, or company policies than they’re currently getting. You know what I’m talking about. So it’s worth spending time thinking through how you as an employer can manage to keep your workers happy when they ask for more while shielding your bottom line at the same time. This is about staying in business, too. Let’s go there today. Compensation Is Just the Start, San Francisco Bay Area Business Owners“When you take care of your employees, they take care of your business. It’s as simple as that.” ― Richard J. Daly Happy employees are the backbone of any successful organization, as you have probably learned from experience in dealing with staff on both sides of the spectrum. And research says so too: according to a study by Gallup, companies with engaged employees outperform those without by a whopping 202%. But we know keeping satisfied workers is not just about compensation; there are other non-tangibles you can offer to maintain a happy workplace, and much of that can be demonstrated during the negotiation process. How UPS Averted A StrikeYou’ve heard by now that UPS reached a deal with employees in late July to avert a threatened strike. This year’s negotiations between the company and the teamsters’ union representing employees went better than it did in 1997, when 185,000 UPS workers went on strike for 15 days, creating havoc in the shipping industry. But this time around, both sides voiced their satisfaction with the deal’s terms, which included compensation increases, new hires, comfort and safety improvements in trucks, and other changes to overtime and seasonal work policies. Negotiations lasted just over five weeks. This very recent example of a reached deal demonstrates that negotiating with employees can be a delicate dance, but success is always possible, even in complicated situations (like 340,000 workers in the balance). So let’s talk about a few of the right moves you can make, regardless of the compensation terms, that can help usher in a win-win situation. ListenDo this first, and not just for formality’s sake. Listen actively to your employees’ concerns and requests while remembering that you were in their shoes at one time. Keep the lines of communication open and make sure your workers feel heard. This fosters trust, which is the key to not just a successful negotiation process, but also to retention and a positive workplace culture. Do Your Research Come into the conversation having researched industry standards for compensation and benefits. Use statistics to back your proposals, making it clear that you’re offering a fair deal based on what’s happening in the market today. A data-driven approach can help lend credibility to your negotiations. Be FlexibleNegotiations involve give-and-take so be open to compromise. Consider offering different options for compensation and multiple solutions to alleviate their other concerns. This can create an atmosphere where employees feel more involved in the final solution because they can choose what suits them best. These are days when San Mateo employers have to offer more than higher compensation terms to attract and keep employees, and these principles are applicable to a business of any size in any industry. My main goal in sharing these values I’ve learned over the years is to remind you that this process doesn’t have to be a battle. It can be a collaborative and peaceful effort where both parties leave satisfied. A win-win is good for everyone. We’re on your side, Patti ONeill and Gale Bergado

Business Growth

ONeill & Bergado’s 4 Straightforward Questions to Uncover Your Business Why

ranjan.254 / June 19, 2025

I suppose there’s never been an easy time to be in business. It’s tempting to look at the current economic situation and cite all the things working against business owners right now. And Google helps with that… My internet search this morning lent me the following statistics: You can relate to at least one of these stats, no doubt. In fact, if you’re experiencing major financial hurdles right now, I’m more than happy to sit down to talk with you about some possible paths forward: |(408) 775-7790 But has it ever been smooth sailing? When you think back to your first year in business, or your fifth year, or your tenth … there were still struggles then, too. The business ownership circle is truly made up of a family of survivors through hard times. So there’s got to be a constant, driving force to keep you in the game, no matter what. Early on in your entrepreneurship journey, you probably spent time uncovering your business “why”. That process turned into your overarching mission for your San Francisco Bay Area business that probably held you steady through the ups and downs. Is your “why” still driving you forward in business today? I’d posit that your “why” today is more important than ever. Here’s why I think it’s worthwhile to uncover your business why all over again… ONeill & Bergado’s 4 Straightforward Questions to Uncover Your Business Why“The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well.” ― Ralph Waldo Emerson In every season of business ownership, remembering the reason you’re in business is often the push you need to keep. going. But knowing your “why” isn’t a one-time thing — you’ve likely discovered this by now. It’s an ongoing journey. Research shows that businesses that take the time to uncover their business why — and have a strong sense of purpose as a result — tend to do better even when the economy is down. A 2019 study by Harvard Business Review found that companies with a clear purpose grew three times faster than their competitors over a 10-year period. That’s a good incentive, but I’m talking to you as a human being here as well. At the end of the day, your San Mateo business is not just about making money. There’s so much more to be had than dollars and cents. So let’s talk about how to uncover your business why and bring your business’s purpose back to the forefront of your daily decision-making. A purpose that stays the same in the face of ever-changing circumstances, giving you stability and inspiration that lines up with what you really believe in. Here are four straightforward questions to get you going… 1) Why did you start(up)? Take a moment and remember why you started your business. What got you excited about it? Was it a problem you wanted to solve, something you loved doing, or a change you wanted to make? 2) What kind of impact do you want to make? Business has the potential to make a real difference. What kind of impact do you want your business to have on your community, your city … the world? Think purpose beyond profits here. 3) What are you good at? Think about what you’re really good at and how it fits with what your business is trying to achieve. Using your strengths to work toward your “why” doesn’t just make your business better – it provides a framework and boundaries around your purpose. 4) How can you say it simply? Now put all of these answers into words. Create a simple statement that tells your team, customers, and everyone else why your business exists. This exercise might seem overly simplistic, but I actually think there is value in that. The point here of uncovering your business why is to get down to the most foundational roots of why you’re doing what you’re doing. Filtering through your years of business history to find that foundation is work enough … so keeping the process simple should be freeing. And freedom is really what we’re after here. The freedom that comes from knowing what you’re about, keeps you steady in the rolling tide of economy and culture. Now that’s worth the effort, for you and your San Francisco Bay Area business. Here’s to the future, and the past that will get you there, Patti ONeill and Gale Bergado

Employee Benefits

Work From Home Policy for San Francisco Bay Area Businesses

ranjan.254 / June 19, 2025

There’s no better way to celebrate work than by taking a day off. The irony of the Labor Day holiday gets me every year, but I do hope that it provided a little extra rest on the front end of a busy fall season. I mentioned in one of my recent notes another piece of irony: how Zoom recently started requiring their employees to come back to the office. Where are you on that journey? If you pivoted to remote or hybrid work models for your employees post-2020, what is your work from home policy looking like these days? If there’s one thing that San Francisco Bay Area business owners in WFH-friendly industries would be wise to pay attention to, it’s that workers still really value having the freedom to work remotely. A full 98% of workers report a desire to work remotely at least some of the time. And the trend still has traction — as of 2023, a little over 40% of the workforce either works from home or operates in a hybrid work environment. But when safety concerns are no longer the banner over this arrangement, business owners find themselves weighing the costs. So today I want to delve into some of the dynamics of creating a work from home policy that incorporates the increasingly popular hybrid work model, but with boundaries that benefit both business owners and employees. Work From Home Policy for San Francisco Bay Area Businesses“Where we’re going, we don’t need offices” ― Doc Brown, ‘Back to the Future’ Now that we’ve mostly accepted the WFH shift in work culture, we’re fully into the weeds of how to make it work long-term, which presents both opportunities and challenges. Based on my conversations with business owners in our area (and beyond), there are themes to the concerns that are voiced. One of the foremost concerns for business owners is ensuring that employees remain productive and accountable while working from home, despite the statistics showing that remote employees tend to be more productive than their office counterparts. (A study by Stanford University found that remote workers were 13% more productive than office-based workers.) Another question being asked is how to ensure the security of data on external systems. And then there’s the need to maintain a spirit of teamwork and camaraderie in a setup where face-to-face interactions are minimal. So let’s talk about how to address these very legitimate concerns when developing your work from home policy. 1) Maintaining Cybersecurity: Protecting Your Business and Employees It goes without saying that cybersecurity is paramount. Your work from home policy should outline clear guidelines for safeguarding sensitive information. Require the use of secure virtual private networks (VPNs), encrypted communication tools, and strong password protocols. Educate your employees about phishing scams and the importance of keeping their devices updated with the latest security patches. 2) Fostering Relationships: Creating A Healthy Workplace Culture There are still ways to build into a spirit of teamwork, but it will look different than before. Organize digital team-building activities, such as weekly video check-ins, virtual coffee breaks, or even online team games. But most importantly, set up a dedicated virtual space where employees can engage in casual conversations and share personal updates. This is a way you can mimic the daily interactions that would normally happen in the office break room or hallways. 3) Maintaining Productivity: Balancing Trust and Accountability Monitoring work productivity doesn’t have to equate to constant surveillance. It’s not like you were constantly looking over their shoulder at the office so take a similar approach here. Implement tools that allow employees to track their own tasks and progress, which can help foster a sense of autonomy and ownership. Regular check-ins and goal-setting sessions can help maintain accountability while empowering staff to take ownership over their time. An effective work from home policy requires a thoughtful approach that is outside the box of “what we’ve always done.” Such are the times we live in as San Mateo business owners, where adaptation is the lynch pin of survival. But I want you to do more than survive, and that’s why I do what I do. Let’s build your business. I’m here to help you expand your financial future:Patti (408) 775-7790 Gale 408-775-7800 In your corner, Patti ONeill and Gale Bergado

Business Growth

Facing the AI in Business Trend in Your San Francisco Bay Area Business

ranjan.254 / June 19, 2025

Since the release of ChatGPT in November of last year, headlines about AI in business have been incessant. One of the biggest controversies is whether or not AI is a threat to the job market. Lots of differing opinions on this one, and time will soon reveal its lasting effects. I’ve personally observed a whole gamut of responses from San Francisco Bay Area business owners: mild interest, full adoption, growing irritation, all-out worry, and absolute avoidance. And as a trusted advisor to your business, I’d like to posit that with technology, the inevitable is inevitable. Let’s give it some serious consideration today and weigh the pros and cons. Blockbuster showed us that business owners can’t ignore new technology and hope it will go away. ChatGPT is here to stay, even though its place and function are bound to evolve as we go. My question for you today: How should we as business owners who want to stay in business respond to this new technology? As a financial professional running an accounting and tax practice, I am constantly tasked with the evaluation of new softwares on the market that boast of new tech to make my job easier. ChatGPT has affected my industry massively, and my response, then and now, is that I must do what all business owners have had to do for centuries: I adapt. Here’s what I think that could look like for business owners responding to AI today… Facing the AI in Business Trend in Your San Francisco Bay Area Business“When you’re finished changing, you’re finished.” ― Benjamin Franklin If you’re feeling like ChatGPT hasn’t yet affected your San Mateo company, think again. Some, if not most, of your employees have been using it in their personal lives and possibly experimenting with it in their work. Many employees are admitting to using it to expedite their work, even at companies where it has been banned. Well-known names like Apple, Spotify, Verizon, and Wells Fargo (to name just a few) have already imposed restrictions on its use in the workplace, while others are specifically hiring people with experience in using it. The most impacted industries by ChatGPT so far are computer coding, software development, copywriting, advertising, legal, customer service, Wall Street, and graphic design. If you’re in any of these industries, this isn’t news to you. My intent today is to lay a framework for how to address the use of AI in your business. Because the businesses that embrace new technology tend to outlast those who ignore it altogether. So, let’s talk through some considerations that will help you evaluate the use of ChatGPT in your business with authority and understanding. Understand its capabilities and limitationsChatGPT is still in its infancy, and like any new development, it’s not flawless. The information it provides might be accurate, or it might not be. It’s crucial not to take the responses it generates at face value without human oversight and fine-tuning. Do your research. Consider legal and privacy issuesAs you use the tool, remember to protect customer privacy. Italy actually banned ChatGPT in March because of worries about data privacy. Make sure you don’t expose employee or customer data, and take steps to prevent data leaks. You can set up ChatGPT to stop gathering customer data or to stop collecting data after a certain point. Think about how to leverage it for your businessThis tool can be adapted for use in various arms of your company, not just the tech and marketing departments. Consider how AI in your business might increase efficiency in even the smallest tasks, from helping customers to generating new ideas. Define its role in your companyEstablish necessary boundaries. Define how AI should be utilized and remember that, as a relatively new technology, it’s wise to avoid overusing it across all aspects of your operations. Be clear with your employees about how it should be used, and empower your team to apply it where it fits best. Oversee its useIt’s essential to recognize that in human terms, the tool is still in its early stages and requires continuous monitoring and guidance. ChatGPT is like a toddler that is still learning to walk. Guidance and supervision are key. AI in business is not a distant concept anymore. But with careful consideration, it could become a useful tool that helps you grow and expand. You won’t know until you explore it for yourself. And this note should help you get started. Need help exploring new tech for your bookkeeping and accounting? That’s my area of expertise: (408) 775-7790 Looking out for you, Patti ONeill and Gale Bergado

Business Growth

Leadership and Empowerment for Business Owners: A Story

ranjan.254 / June 19, 2025

Let me begin by noting, if you were looking to file for the Employee Retention Credit this year, heads up that the IRS isn’t processing any new claims through the end of the year. This is an effort to keep you out of hot water if you shouldn’t be claiming the ERC and to crack down on any questionable claims resulting from aggressive marketing for it. Now, with the September 15 business tax deadline behind you, you can take a short breath before the next one (coming up on October 16 if you filed an extension). But of course, business owners don’t always have the luxury of taking a long breath. Particularly if you’re responsible for many aspects of daily operations. And that can lead to problems. Burnout is a common issue for business owners. If you’re feeling it creeping in, you’re not alone. Many San Francisco Bay Area owners and managers find themselves overwhelmed with daily tasks and, more problematic, losing sight of the bigger picture. The impact is both personal and corporate: exhaustion, decreased productivity, and even a decline in the business’s overall success. The goal of my note today is to give you ONE thing to change to help turn that ship around. Or if you’re not yet feeling the onset of burnout, let’s talk about one way to prevent it. So here it is: embrace staff empowerment in the leadership of your business. Leadership and empowerment go hand-in-hand, but to do that, you have to stay out of the weeds when it comes to daily business management. Here’s a little story to illustrate my point… Leadership and Empowerment for San Francisco Bay Area Business Owners: A Story“Don’t tell people how to do things, tell them what to do and let them surprise you with their results.” ― George S. Patton In the heart of a bustling city, there lived a renowned composer who conducted an orchestra known for its great potential. But this conductor began to grow dissatisfied with his orchestra’s performances, noting errors from his musicians that he himself would never make. So during the next concert, he left his post at the podium to hover behind the first violinist, pointing out the musical dynamics that were being missed as she played. The violinist’s notes faltered, and the whole strings section began struggling to stay on tempo. The maestro rushed back to the podium and snatched up his baton to try to restore rhythm. But then he noticed a trumpet player struggling to keep up. He hustled over to bombard the player with unsolicited advice on breath control. The once-confident brass section’s notes wavered. Running back up front, he waved his hands frantically to restore order. But the flute solo was approaching, so he tiptoed forward to whisper instructions. When she tripped up slightly on a particularly delicate trill, the conductor suddenly jerked the flute away and played the solo himself. With each meddling gesture, the music limped along as the orchestra struggled to find cohesion and cadence. At the end of the performance, the audience responded with uncomfortable shuffling and polite but hesitant applause. As this practice continued over time, musicians began to drop out, ticket sales declined, and once-loyal audience members lamented the day that the conductor stepped off the podium. The moral of the story here is obvious: Empowering others is empowering yourself. You need to lead from the front, with the full picture in view, which your team desperately needs to stay on mission. Good leadership is marked by the practice of empowerment. Instead of trying to lead each musician individually, the conductor could have empowered each section’s first chair musicians to coach the rest of their sections. Trust your team to handle their responsibilities and provide them with the guidance and resources they need to succeed. Steve Jobs, the co-founder of Apple, understood the connection between leadership and empowerment. He once said, “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” Jobs recognized that by trusting and empowering his team, he could tap into their creativity, leading to the creation of countless groundbreaking products and a company leading the way in technology innovation. Leading this way is better for your business, and your sanity. Need a coach to help you identify areas where you can delegate your San Mateo business and financial management tasks? Let’s talk:(408) 775-7790 Helping you lead from the front, Patti ONeill and Gale Bergado

Business Tax Planning

Alternative Approaches To Paid Time Off Policy for San Francisco Bay Area Businesses

ranjan.254 / June 19, 2025

October is right around the corner. So is the October 15th extension deadline. And so is the fourth quarter for your San Francisco Bay Area business. As we approach Q4, be mindful of the usual year-end accounting needs and reporting requirements that will be popping up. We’ll keep you informed of changes coming, but please do reach out proactively to begin preparing if you haven’t already: (408) 775-7790 And with the start of a new year coming in just a few months, it can also be a great time to reevaluate some of your company benefit packages that will be rolling over on January 1. Specifically, your “use it or lose it” paid time off (PTO) policy. Not all companies take this approach, so let’s discuss some alternatives that are out there. Alternative Approaches To Paid Time Off Policy for San Francisco Bay Area Businesses“A vacation is what you take when you can no longer take what you’ve been taking.” ― Earl Wilson If your paid time off policy hasn’t changed in decades, it may be time to take note of the latest statistics regarding PTO and the challenges that both employees and employers are navigating. The Current PTO Landscape Utilization gap: Only four out of ten workers use all their allotted days of leave each year, leaving 60% struggling to use it all effectively. (Source: Human Resource Management) Job demands: One in three workers find it hard to take their vacation time due to demanding job responsibilities. (Source: Indeed) Special situations: Some employees save their PTO for special occasions, lack the funds for a vacation, or simply feel guilty about taking time off. Interest in other options: Surprisingly, 83% of workers express interest in converting PTO into other financial resources. (Source: MetLife) These are situations when PTO can become more of a burden than a benefit. So let’s talk about other options you have as an employer. Offering Unlimited PTO The concept of unlimited PTO gained popularity around a decade ago, with companies like Netflix offering this perk to their staff. This kind of arrangement can boost productivity and morale, remove the pressure of having to work while sick, and can be used as a great recruiting tool for a population looking for more flexibility and freedom in their work. But time has shown that it might not be the ideal paid time off policy for everyone. Nearly 30% of Americans with unlimited PTO policies end up working during their vacations. Others avoid taking vacations to meet unspoken work expectations, leading to burnout. Note: If you decide to adopt an unlimited paid time off policy, consider setting a minimum annual vacation requirement to encourage employees to take time off for genuine relaxation. Combining Vacation and Sick Time Many employers are moving towards PTO banks that don’t distinguish between sick leave and vacation time. This approach has seen positive results, including a decrease in unscheduled employee absences and reduced HR tracking efforts. But it’s not universally popular among employees, especially those with high healthcare needs, who report finding themselves using a significant portion of their time off for medical reasons. And some say it could backfire and incentivize sick employees to come to work so they can save PTO for vacation. Note: Before implementing a combined PTO policy, be aware of state and local laws that may restrict or regulate its usage, which can vary from state to state. Converting PTO Into Actual Money This paid time off policy allows employees to cash out their unused PTO for other benefits. Instead of losing unused PTO or being constrained by calendar timeframes, employees can choose how they want to use their earned time off. Employees can convert PTO into cash for various financial purposes, such as building an emergency fund, contributing to a Health Savings Account (HSA), or adding to their retirement accounts. For you as an employer, it could potentially reduce the liability and administrative burden associated with PTO management. Note: Don’t forget to consider the tax implications and reporting requirements when implementing PTO conversion policies. This includes adjusting payroll taxes and complying with IRS regulations for contributions to HSAs and retirement accounts. Ultimately, the best PTO policy for your San Mateo organization will depend on your specific needs and goals. But this is one of those small changes that could make a big impact for your organization, both in hiring and employee management. I can help you assess the impact on your bottom line. Helping you think outside the box, Patti ONeill and Gale Bergado

Business Growth

Steps For Prioritizing Profit In Your San Francisco Bay Area Small Business

ranjan.254 / June 19, 2025

Profit is the lifeblood of any organization. Show me a small business with PROFIT at its center, and I’ll show you something worth modeling yourself after. An organization NOT to model yourself after: the federal government. They prefer to operate in deficit mode, narrowly avoiding yet another shutdown this weekend with a temporary funding bill that expires around Thanksgiving. So stay tuned for more drama on that front. Meanwhile, I’d like to help you avoid drama on your turf, by creating a strategic plan for prioritizing profitability. You might have heard the term “profit first accounting” in various business-type conversations. It’s not a new philosophy. It was first made popular almost a decade ago by Mike Michalowicz and his book, Profit First. I think it’s worth remembering, so today, I thought I’d cover some of those core principles so that it might spark new accounting ideas as you prepare your San Francisco Bay Area business for the close of another year. For a deeper dive, obviously, read the book, and we can talk more about putting it into practice. But here’s a start. Steps For Prioritizing Profit In Your San Francisco Bay Area Small Business“Money is a terrible master but an excellent servant.” ― P.T. Barnum In the world of business, priorities are essential for long-term success. So, where does profit fall on your list of priorities for your small business? Traditionally, profit might come after handling expenses like COGS and payroll, but a profit-first approach flips that. You pay yourself first. Here are some shifts that would need to come first… 1. Structuring Your Accounts One of the first steps in embracing the profit-first mindset is organizing your bank accounts strategically. This simple adjustment, implemented with your accounting team’s help (ahem), will keep your small business profit goals on track. Here’s the setup: Profit: Savings AccountOwner’s Pay: Savings AccountTax: Savings AccountOperating: Transaction AccountRevenue: Transaction Account 2. The Weekly Instant Assessment Fill out the Instant Assessment Table (from the author’s website) on a weekly basis to maintain allocation and accuracy. You and your team will need to record and report all revenue appropriately. Be mindful that tax laws may impact the percentages year by year. This is a key area where I can help you walk out these principles. 3. Implementing Profit Transfers Every two weeks, the transfer of funds becomes your small business profit-first ritual. Accountability is paramount here. Consider partnering with a trusted team member to ensure precise fund allocation according to these objectives: Profit: Build Profit ReservesOwner’s Pay: Take Home Your CompensationTax: Fulfill All Tax ObligationsOperating: Cover Day-to-Day ExpensesRevenue: Exclusively for Income Deposits Making Profit Your Small Business Mantra The profit-first mentality is not a groundbreaking concept anymore, but it’s a pivotal step for small businesses seeking improved cash flow management. And if your current strategies aren’t giving you what you want, why not give it a try for a month or two? After all, adaptability is a hallmark of successful businesses, as I’ve said before. If you have any questions about these profit principles and how they can benefit your San Mateo small business, don’t hesitate to reach out:(408) 775-7790 Your profit is my priority, Patti ONeill and Gale Bergado

Author name: ranjan.254

ONeill & Bergado on What “Open For Business” Means To The IRS

Business Cash Advance: A Loan Alternative for San Francisco Bay Area Businesses

Why San Francisco Bay Area Married Owners Might Choose the QJV Route

Compensation Is Just the Start, San Francisco Bay Area Business Owners

ONeill & Bergado’s 4 Straightforward Questions to Uncover Your Business Why

Work From Home Policy for San Francisco Bay Area Businesses

Facing the AI in Business Trend in Your San Francisco Bay Area Business

Leadership and Empowerment for Business Owners: A Story

Alternative Approaches To Paid Time Off Policy for San Francisco Bay Area Businesses

Steps For Prioritizing Profit In Your San Francisco Bay Area Small Business

Get Directions

(408) 241-4100

Contact Details

Our Most Requested Services

Quick Links

Importaint Link