ranjan.254 – Page 5 – Snap Advisory

How San Francisco Bay Area Businesses Can Raise Prices Without Losing Customers

ranjan.254 / June 20, 2025

Are you watching your COGS these days? (I, ahem, hope you know what those letters stand for, because if not … well, then we should DEFINITELY talk. (408) 241-4100 ) Has it gone up? You’re probably not alone given what kind of signals the economy is sending these days. In which case (and you’ve probably already thought about this), figuring out how to raise prices without losing customers is especially important. You can ignore the likelihood of everybody looking to cut costs as their COGS increase (if you are B2B), or as San Francisco Bay Area consumers feel the tightening in their wallets as prices go up. OR (and I like this way better), you can be strategic. So, I thought I’d offer you some ideas today. How San Francisco Bay Area Businesses Can Raise Prices Without Losing Customers“Things work out best for those who make the best of how things work out.” – John Wooden It’s heartbreaking to watch San Mateo small businesses go out of business or not bring home enough bacon simply because they get trapped into thinking about their customers and their pricing in the wrong way. And as such, they end up losing customers. When you differentiate yourself based on price alone, you simply cannot provide value. You end up competing on the wrong playing field, and it’s not one in which you’re built to win. Yes, price competitors have been in operation since the days of the Greek agora, but it’s important to understand that if YOU want to build a sustainable, scalable — and, one day, SALE-able — business, a core foundational piece of that puzzle is that you must be charging enough for your goods and services. Many San Francisco Bay Area small businesses remain in perpetual survival mode because of how they price their products. They believe their only competitive advantage lies within their pricing, so they run an ever-accelerating race to the bottom. But even in shaky times (which, if you’re looking at current economic numbers, we are NOT currently facing), people still have money to spend. So, it stands to reason that if you’re not bringing it in, you’re simply not doing a good enough job showing them that your place of business is the best place to spend it. You see, it’s all about understanding the specific value you provide. And if you’re not clear on it, your prospective customers certainly won’t be. So, how can you do better in communicating your specific value? Well, I’ve got three ideas for you today… How to Raise Prices Without Losing Customers Tip #1: Reassess your primary selling pointsYour prospects have no way to know if you are the best option for them. To regular consumers, most options are the same — in almost every industry. When you compete on price, you attract … those who are shopping based on price. And, of course, they see you as “just like everyone else.” Then the real question is what makes your San Francisco Bay Area business different? And how do you show that to the marketplace? That’s what you need to focus on and figure out how to quickly tell that simple story. Your prospects must turn to you because they trust you and because they see your business as worth the money — not because you’re the cheapest option. How to Raise Prices Without Losing Customers Tip #2: Tap into customer psychologyWhy can Nordstrom charge higher prices for products found elsewhere (i.e. cars, purses, ties, shoes)? It’s because of the VALUE they’ve attached to their brand (i.e. social prestige, enhanced customer service, increased self-esteem). They’ve moved themselves out of the commodity market and into the heart, emotions, and primal urges of their clients. You need to (and can) do the same thing in your business. Yes, your customer can get a widget or receive a service for XYZ … but what AREN’T they getting when they work with that other option? Focus on identifying these aspects of your offering. Your value is not derived from the “features” of your product or service … it is found in the intangible — emotional — benefits from working with or purchasing from YOU. How to Raise Prices Without Losing Customers Tip #3: Evaluate your offerings for bundle opportunitiesFor service professionals, there are only so many hours in a day and you’ll reach an income plateau very quickly when you are billing by the hour. Not to mention that you have to start every month over at zero — and there’s little stability in that. So, my advice? Begin billing on a flat fee/value basis. If you’re scared to shift, just think of the *value* your customers will experience having a professional using flat fee billing. They won’t be nickel-and-dimed for every phone call, email, and message that comes through the office. They can communicate with you as they wish without fear and they can pick their price point of choice if you have multiple flat-fee options. Many people are willing to pay more for certainty. It’s a win-win for them — and it’s very much a win-win for the health/sustainability of your business. For retailers or product providers, you can only play “margin games” for so long. So, identify monthly services that might augment the experience of using your products. Consider what your customers actually want (on an emotional level) and the problems they face in using your services. Restaurants could initiate a “VIP club” with special perks, automatic billing, and exclusive choices. Merchants can create enthusiast groups, or lessons and coaching. The point is to go *beyond* the widget … and into the heart of your customers’ desires. Remember this: There are always consumers out there with more money to spend. And they NEED your products or services. It’s up to you to convey the intrinsic value of working with you (even at a higher price point) in order to make a revenue shift with what is left of the year. If you need help thinking this through, we’d be happy to give some insights and get you on the

Business Growth

How San Francisco Bay Area Businesses Can Build a Quality Prospect List

ranjan.254 / June 20, 2025

How’s your client/customer list faring these days? If you’re like every other business around you, you’ve got some churn happening. People move, change jobs, experience a shift in financial circumstances … the list goes on. Even in predictable economic times (remember those days?), the task of finding new customers to replace the existing ones is an ever-present challenge for San Francisco Bay Area business owners. You might have a great prospect list to start with – or you might not. The truth is that no matter the size of your list, you have a ways to go with a pickaxe and shovel before you turn those names into satisfied buyers. Building a prospect list starts with looking at your current clients, looking around your market area and figuring out the best ways to reach people. It’s a lot of work – but it’s worth it. Before I get into this topic today, one quick reminder: Let’s try to grab a time to talk about your San Jose business before year-end, just to ensure that we are capturing every available tax-savings strategy for you. Find us here: Patti (408) 241-4100 Gale 408-775-7800 Now, let’s discuss building that list… How San Francisco Bay Area Businesses Can Build a Quality Prospect List “Master the topic, the message and the delivery.” – Steve Jobs Growing a prospect list starts with your current customers – and the ones you like working with most. Look at them. What makes these folks special? What do they have in common when it comes to your business? Is there one service they use a lot or a product they always buy? Are they all in the same industry, or do they live in the same area? Any prospect who has a lot in common with your best customers is going to be a hot prospect indeed. Quick note: A “prospect” is not a “lead.” A lead is often little more than somebody’s contact info. A prospect is somebody who, for whatever reason, is a whisker more likely to want to do business with you. Prospects also don’t even have to be interested in buying right now. They just have to fit the general characteristics of the folks who already buy from you. Another way to find good prospects is to see what markets are doing well in your area. “Market” can mean a lot of things, from more people moving in to more businesses opening. Sometimes all it takes to spot an opportunity is taking the time to look. And of course, what’s the competition up to? Probably most times you look at the other guy with envy that they’re doing something you can’t. When you’re building your prospect list, though, flip that around: What’s your competition not doing that you can? Look around your company, too. People know people. You may have so-so prospects that can turn into great ones because somebody right under your nose has the inside story. Ask. Get the word out Now that you’ve got this list (with luck, a big one) of people who have a better-than-average desire to buy from your San Francisco Bay Area business, what do you do with it? Thing is, you’ve got a lot of ways to reach them today – a lot – but you’re going to be just noise if you don’t speak loud and clear and right to their interests. Some mediums to consider… Direct mail. Even though the mailman still brings you a lot of recyclable material, you have to admit that physical junk mail isn’t as common as it used to be. That could be your opening. Depending on how many people you’re trying to woo, invest the time for handwritten notes or the expense of mailing a book. Sure, these aren’t cheap, but they could pay off when you’re trying to reach the best of the very best of your prospects. Requesting a signature on delivery is a relatively cheap way to stand out, too. Despite the bucks for printing and postage, direct mail still works. And so does this… The phone. Nobody likes getting cold calls and nobody likes making them – but salespeople say they still work. Study your list well, let folks know about you before you call and you might get somebody keen to buy (a happier cold call for everybody: the warm call). Social media. Join online groups where your prospects are and then behave like any other member: helpful but not like somebody looking to sell something. Sooner or later, they’ll recognize your expertise. Email. Most people say they prefer to be contacted by email – yet the open rate on unsolicited email remains small. Best bet is to only contact and communicate with prospects this way if they’ve given you permission. Drop any the moment they ask you to. List to-do’s Your list will soon have to tell you more than just somebody’s address. It needs to provide you with actionable data. So think about: Happy prospecting. If there’s anything else we can do to help you and your business get ahead, just let us know.Patti (408) 241-4100 Gale 408-775-7800 To your (faster) growing company … Patti ONeill and Gale Bergado (408) 241-4100 ONeill & Bergado

Business Growth

Employee Retention Strategies for Proactive San Francisco Bay Area Bosses

ranjan.254 / June 20, 2025

Your employees are happy, right? They’re never going to leave you … right? They’re not looking for another San Francisco Bay Area job … uh … right? You know what the answers are: Maybe, wrong, and I sure hope not. Sooner or later, the advantage will swing back to you, the boss who does the hiring. But until then, the world’s changed and keeping people on the job takes, well, work. What do your employees want in a new job, anyway? And what are some employee retention strategies that will actually work right now? These are questions many San Francisco Bay Area bosses like you are asking these days… And also, another thing: Let’s try to grab a time to talk about your business before year-end, just to ensure that we are capturing every available tax-savings strategy for you. Find us here: (408) 241-4100 Employee Retention Strategies for Proactive San Francisco Bay Area Bosses“By working faithfully eight hours a day, you may eventually get to be boss and work twelve hours a day.” – Robert Frost The economy is still sputtering, scads of people are unemployed — yet San Francisco Bay Area bosses like you are crying for workers (that’s maybe the biggest reason you don’t want your folks leaving right now, even if there are one or two of them you’d love to say good-bye to …). What’s going on here? What’s going on is that one out of every four people quit their job this year. And they didn’t do it because they’re such big fans of credit card debt and starvation. That number is also up from previous years – even the last few years when people first began quitting in droves. They’re calling this “the Great Resignation.” Clever name, huh? Except that if you’re trying to replace an employee right now, then maybe you’ve found there’s nothing “great” about it. Things are only getting harder for small businesses that need to hire workers. But hey, bad news rarely travels alone – and the Great Resignation is no exception. Almost two out of every three workers are actively looking for a new job. Look at three of your employees (stare discreetly). Two of them might well be sending out resumes. Anybody grumbling more than usual? Out a lot? Not seeming to give a hoot? You might have employees looking for greener pastures. What you can do: Some employee retention strategies that actually work Speaking of “greener,” you can certainly try paying your people more. That still floats the boat for a lot of employees. But you have to realize that others may be just plain looking for something else. Outta here: Flexible hours and being able to work from home are two huge reasons people are bailing. A recent survey found that more than half of workers in all professions want a job that lets them work from home. A few companies (maybe your competitors) let them have that. Food for thought? If you’re coming off a period of employees working from home, look back at that. What went well? Would it kill you to keep doing things that way? Sorry, but you have to think on your feet to run a small business these days – don’t just do things because that’s the way they’ve always been done… Who’s quitting? Reports say that women and workers who have about 10 years with a company are most likely to walk right now: re-thinking careers, looking to spend more time with family and friends. Others are waiting to see which way our health crisis goes, and others are just plain burned out. Your folks aren’t looking to jump ship just because they want a change of scenery. Heading off this problem is going to take more than your checkbook. Find out what they want and see if you can keep them by planning ahead. Ask ’em: Is there anything you can do to make an employee’s life a little easier right now? There’s no guarantee that they’ll answer with 100% honesty (and no, you don’t have to volunteer to clean their house…), but if you show an interest, they might just come back with a workplace tweak that the two of you agree on. What they do best: A lot of employees say they’re quitting to pursue their passions – or at least something closer to what they really want to do. What do you really know about your workers, what they like to do, and what they’d be great at? Find out – maybe there’s room for that skill in your business. Hit them with a little more authority or responsibility to go with that extra pay. You’d be surprised how many people want that combination, not just the raise. See if you can train them, too. That never hurts. Spread the word: If you have to hire, don’t look to want ads to save you. Networking might also come up drier than usual, since everybody’s looking for workers. Go with referrals – in fact, if your current workers are happy to refer you, they might not be as close to leaving as you think… Expect any new hires that you do find to be hard negotiators. Nobody wants to do all the wooing, but new hires hold a lot of the cards right now. You and your business can get through this. Let us know how we can help.(408) 241-4100 To a happier, healthier company … Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

San Francisco Bay Area Business Owners: Beware the Sales Tax Nexus

ranjan.254 / June 20, 2025

If your San Francisco Bay Area business sells a lot online, then we’re coming into the most wonderful time of the year. And this year, your customers will probably shop your website (and elsewhere online) EARLY in order to bypass all those supply-chain snafus. Cha-ching for you. Just don’t forget the taxman – and we don’t mean the IRS. We mean the sales tax in states where you sell your stuff. Yes, if you sell enough online, you’ve got to pay attention to the sales tax nexus. You see, you’d be amazed at how many times this topic becomes “a thing.” In fact, getting this wrong is one of the primary ways that businesses get in trouble with various revenue agencies (IRS and state revenue offices) because they don’t handle it properly. But before we dive into this, let’s make sure that your business (and your family) is also capturing every available income tax-saving strategy available right now, and do a little taxplanning: Find us here: Patti (408) 241-4100 Gale 408-775-7800 Now let’s get a little scary together, shall we? San Francisco Bay Area Business Owners: Beware the Sales Tax Nexus “The Internet, once heralded as an exciting new medium of communication, is now little more than a vast mail-order catalogue.” -Tom Hodgkinson Everybody who lives in a state with a sales tax knows about that extra little bit that gets tacked on to purchases. That’s usually the point in the retail cycle when you hear muttering about the mayor, the governor, and/or everybody in the state capital. That little bit is the local sales tax. Most states have one. What about when you buy something online? Just before you hit “check out,” that little amount gets tacked on there, too. What about when you’re the one selling over the internet? Have you ever heard of Wayfair? The home-goods and furniture company that does almost eight figures a year in global online sales? That Wayfair? How about the U.S. Supreme Court’s 2018 Wayfair decision? No? Well, that’s when our high court agreed with the state of South Dakota, which had long claimed that Wayfair owed sales tax from tons of transactions in that state. The Supreme Court then basically gave South Dakota the authority to tell all online sellers that if they sold more than the low six figures or a couple hundred sales a year in the state, then they had to collect and send back South Dakota sales tax. That’s because a company then had economic nexus. “Economic nexus?” Sounds serious. Is there a cure? Sure. If you sell enough, collect sales tax from your online customers and send it back to the state. Period. Taxing in a boom Now, most states enforce economic sales tax nexus – not to mention all the cities and even towns out there that levy their own sales tax based on economic nexus. (Not-so-fun fact: An office or a warehouse is one thing that can give a company “physical nexus.” So can your staff working remotely in another state – check with us ASAP on this…) States’ timing is suspiciously perfect: E-commerce and buying over the web were already red hot before the pandemic made it explode. Research shows that more than nine out of ten internet users worldwide have purchased products online and that e-commerce is growing annually at about a 23% clip. Holiday click-and-buy in the U.S. alone this year is expected to be in the hundreds of billions of dollars. That’s a lot of sales tax. In this case, your customers pay the tax. You collect and keep it for a set time – say a calendar quarter; depends on how often a tax jurisdiction makes you file – and then you send it into a department of taxation/revenue. Your next steps with the sales tax nexus Funny thing about people in the government who slap you with a tax: They tend to want to see the money. And they can get nasty when they don’t see it. Think “sales tax audit,” “fines,” or worse. If your San Francisco Bay Area business sells a lot into a state, check with that state’s department of taxation and see what the deal is under “sales tax economic nexus.” If you are over or near the thresholds of dollars or number of sales, keep the following in mind: – Taxability of your products. Not all jurisdictions levy sales tax on everything sold all the time. A lot of states have sales tax holidays for occasions like back-to-school shopping, for instance. Jurisdictions sometimes split hairs on tax exemption. Some states exempt groceries from sales tax, for example, but require you to charge a sales tax on other kinds of food. It can even depend on whether chocolate or other candy is involved, and what a state considers “candy,” and so on and so on… aren’t taxes fun? Again, check with the state. – Register. If you think you’ve got nexus in a state, register there to collect and remit sales tax. You can usually register online, which is fast. Most states let you register for free, but not all. – Keep track. You have to calculate the right tax to collect and send back; there’s software that can help with this. You also need to keep a calendar of when you’re supposed to file your sales tax return with what state and to keep up on all the notices. The taxman loves to send notices – and some might need your quick attention. You can handle this new tax obligation with a little work and attention – but don’t let it slide. If we can help, please let us know. Patti (408) 241-4100 Gale 408-775-7790 To your San Francisco Bay Area business staying out of hot water … Patti ONeill and Gale Bergado (408) 241-4100 ONeill & Bergado

Business Growth

ONeill & Bergado’s Rundown of the 5 Basic Business Entity Types

ranjan.254 / June 20, 2025

The shape of your business affects your future and when I’m talking about the “shape,” I of course am referring to your San Francisco Bay Area business entity type. Did you know that you CAN change that after the fact? Depending on which entity you are switching to, the process can be painful … but you are NOT “locked-in” to a particular entity for the entire life of your business. It’s worth being very thoughtful about all of these things, especially as we deal with an inflationary environment that may (or may not) affect you in significant ways. And yes, I saw the passage of the infrastructure bill the other day. Once the thing is signed into law by the President, I’ll dig into it a little more and give you my thoughts. And before I dive into entity topics, you are invited to grab a time to talk about your San Francisco Bay Area business before year-end to ensure that we are capturing every available tax-savings strategy for you. Find us here: (408) 241-4100 Ok, let’s talk business entity types. Nerds of the world, rejoice. (TL; DR? — We can help you make sure you have the RIGHT entity for tax considerations and for your future plans.) ONeill & Bergado’s Rundown of the 5 Basic Business Entity Types“Definiteness of purpose is the starting point of all achievement.” – W. Clement Stone The classification and type of business you have is an “entity.” Different business entities get different tax treatments (nothing’s ever simple, right?). For instance, in many circumstances, people in some partnerships, LLCs and S corporations (keep reading) can take a 20% tax deduction on their “qualified business income” (QBI). As always in taxes and business, conditions apply – and Congress is considering tweaking this break, so stay tuned. It’s one example of how the right business structure can change your tax life. Here are some of the most common entities and their good and bad points along with some very basic tax info: Business Entity Type #1 – Sole proprietorship: This is the simplest biz structure. It’s just you. You get all the profits, take all the chances, and take all the hits. You pay your regular income tax on the profits, but you also have to pay self-employment taxes. Paying these every quarter is a really good idea, no matter what business entity you have, to stay on the taxman’s good side. Business Entity Type #2 – Partnership: This is a bit more formal than just a few sole proprietorships glued together to share expenses, especially when you’re talking about taxes. You have to get an employer identification number from the IRS and register for all state taxes (think “sales tax”). You file a federal Form 1065 “information return” to report the income, deductions, gains, losses, and so on. You also have to think about excise taxes and employment taxes; these tend to pop up no matter the business entity you use. You pay income tax as an individual since the money you make (or lose) “passes through” to the partners. That’s you. Your business doesn’t get taxed separately. Business Entity Type #3 – LLC: A “limited liability company” is easier to start and run than a corporation but provides owners and their personal assets (your bank account, car, home) “limited liability” for problems the company might get into. Profits or losses pass through to your personal tax return using a federal Schedule C. Aside from you possibly being able to use that QBI deduction we mentioned, LLCs can be taxed as sole proprietorships or partnerships – but you can choose to be taxed like a corporation with the plus of paying taxes on the business profits at the (lower for now, anyway) corporate tax rate. Corporate culture Two of the most common corp structures are S and C. They resemble each other, but there are big tax differences. Business Entity Type #4 – C corp: Among other goodies, tax-free and tax-deductible benefits are available to employees in a C corporation (but as always, check with us on this), and owners can sometimes even get out of capital gains taxes when they sell a certain stock of the company. But C corps suffer two levels of tax: On the income earned by the business and on the earnings distributed to shareholders as dividends. The individual shareholders must report this income on their individual tax returns. Dividends also get a really nice tax rate compared with income (but still, ouch). Don’t be in a hurry to go to C: A recent study found that some startup C corps would have actually saved themselves money if they’d formed as LLCs. Business Entity Type #5 – S Corp: These puppies pay only one level of taxation and a lot of C corps switch to S corp status. Tax bills can be like that… S corps pass corporate income, losses, deductions, and credits through to shareholders who report the “flow-through” of income and losses on their personal tax returns – so S corps avoid that double taxation. They also get a real tax spark by only having to pay FICA taxes on salary compensation to owners and not on the remaining profits that magically transform into “distributions.” Before you get visions of fattening your distributions, paying yourself a goose egg in salary, and dodging FICA altogether, the good folks at the IRS say that S corp owner-employees must be paid “reasonable compensation” for their services to the business. Finally, there are a lot of conditions to qualify for S corp status and some states also have special rules for S corps. You should never let the tax tail wag the dog of your San Francisco Bay Area business, and there’s a lot more to know about biz entities and their plusses and minuses. If you want to learn more, make some time to chat.(408) 241-4100 To your business being in optimum “shape” … Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

The Infrastructure Act and Your San Francisco Bay Area Business

ranjan.254 / June 20, 2025

Blink, and we’re already into December. Which also means… 2022 is right around the corner. Are you ready? The reason I put this so starkly is that you and I have less than 30 days left to make a tangible difference on your taxes (business or personal). For your business (whether it’s a pass-through entity like an LLC or a C-corp, etc.) we have to ensure that your P/L’s are accurate and that you are being wise about expenses that you should either put off or accelerate, and more. If you want to talk all of this through and get ahead of the game while you can, we’re right here: Patti (408) 241-4100 Gale 408-775-7800 But today I want to address the recently-signed infrastructure bill — this is a different bill than the one grabbing headlines now (the “Build Back Better” Act). The key difference for the infrastructure bill is … well, it is actually signed into law. Let’s look at how it might affect your business. The Infrastructure Act and Your San Francisco Bay Area Business“Americans: Time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta.” – Dave Barry On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act into law. You’ve probably heard of it as the trillion-dollar-plus infrastructure bill. It has a lot to do with bridges, roads, drinking water, climate improvement, public transit, and internet broadband. It’s being called a “once-in-a-generation” law, and, yes, it is big news. A few of the new law’s tax provisions are high-flying: extending some highway taxes, tinkering with taxes for superfund sites, and allowing bonds for some broadband projects and climate-friendly facilities. There’s also a provision to extend relaxed funding requirements for employer-sponsored retirement plans. (We can tell you more about that one.) But the Act also tweaks taxes you and your San Francisco Bay Area business might pay. Let’s take a look at some of the biggest changes. Credit discard The Infrastructure Act will have a big impact on small businesses that planned to take advantage of a popular pandemic-related tax break. The Employee Retention Credit (ERC) was a real goody, a tax credit for a big chunk of the wages paid by companies that the pandemic clobbered on the bottom line. Now, this break is ending early. Maybe too early. The ERC wasn’t supposed to say goodbye until Dec. 31st but got an early sendoff on Sept 30th for most employers, courtesy of the Infrastructure Act. Any wages paid after that are now ineligible for the credit. Some recovery startups can still get the credit, but these companies had to have opened their doors after Feb. 15, 2020, and their gross receipts capped at six figures, among other conditions. (Business owners might also have a shot at retroactively claiming the ERC for prior quarters. Check with us to find out if you are.) Wait a minute – September 30th? That’s right, notice that Washington was too busy bickering to pass this bill before the end of the third quarter of this year, as was once planned. That could be a problem for businesses that used the ERC through October; those businesses might be asking if they’re going to be in trouble for not having sent in the payroll taxes for wages they thought they were getting a break on … You’re not alone in asking this. A lot of people are asking the same question. And it’s a good argument for why Washington should pass a bill when they say they’re going to. Regardless, we’ll keep you posted. Virtual reality If your San Francisco Bay Area business deals with cryptocurrency at all, the infrastructure bill has a tax whammy that’s anything but two-bit: All crypto transactions of five figures and up must now be reported to our “friends” at the IRS. This new ruling takes effect in 2023, so you’ll have to file your first “information reports” on these transactions by Feb. 15, 2024. For now, the focus is just on cryptocurrencies, but the taxman is keeping options open regarding what’s called “other assets” in the exploding digital marketplace. The phrase they’re using is “cryptoasset.” Sounds like a band your kids listen to. But be prepared for the broad-sweeping implications of that term… Don’t worry, we’ll keep you posted as changes roll in, so stay tuned. Disaster planning Currently, the IRS will often give taxpayersincluding businesses extra weeks (even months) to file returns/pay taxes if they’re in areas hard hit by various natural disasters — hurricanes, big blizzards, tornados, floods. But that extra time isn’t necessarily a gimme – the IRS doesn’t have to grant it. Now, the Infrastructure Act says if you’re in an area that’s been hit with a federally declared disaster, you get more time automatically. And “disasters” now also include major fires. The new law automatically gives a couple months’ relief after a disaster is declared. It covers filing and paying income, estate, gift, employment, or excise taxes, as well as filing a petition or notice of appeal with the Tax Court, among other extensions. If this sounds like no big deal for you, just remember: Nobody expects a disaster. This could come in handy. You never know. The only constant is change Washington’s never done with taxes. Other changes most likely loom in future headline bills like the Build Back Better package, and those are more likely going to be stuff that you’re used to seeing in biz taxes, like adjustments (see “increases”) to corporate rates and the cap on the tax deduction for state and local taxes. Or maybe not. If the Infrastructure Act taught us anything, it’s that you can’t be sure about new tax laws until the ink’s dry on the president’s signature. We’ll always keep you posted, and we’ll always be there to answer your questions. We’ll keep you in the know about tax law changes and how they affect your San Francisco Bay Area business. We’ll be here to answer

Business Growth

Patti ONeill and Gale Bergado’s Thoughts on Being Thankful in Difficulty

ranjan.254 / June 20, 2025

“It was the best of times. It was the worst of times.” I think we can agree that Charles Dickens’s famous lines ring true when looking back at 2020 and 2021 (though “best” might seem like a stretch). With employees shifting their worlds to make room for new priorities, disruptions to supply chains, new government regulations, and so on, we’ve seen San Francisco Bay Area friends’ small businesses (like yours) in a non-stop “pivot” just to keep things running. The constant pendulum-swinging of activity has taken its toll, causing a haze of collective exhaustion to set in. When you’re tired, it’s easy to think about the “worst of times.” But, as we take a little time to rest over here at ONeill & Bergado, we can see that these rollercoaster years have also offered up valuable lessons about what’s important and we’re truly thankful for them. And that’s what we want to focus on right now. When I look back, I can see (right away) the many blessings of my San Mateo practice. First among them: the joy of you choosing us to be a trusted source, not only with your taxes but also as a guiding source when it comes to your business. We know it’s hard to trust your “baby” (your business) to another, and we don’t take it lightly. Also, remembering the journey to get to where we are now is a process from which we can dig out nuggets of gratitude. As anyone who runs their own business will agree, it’s a giant leap to go out “on your own.” I still remember what it was like to take this dream I had for my practice and put it into reality. I was a little bit scared, but I was hopeful. It all seemed so risky, but there were friends and other business owners who helped me along the way. The risk DID pay off of course, and I’m happy about what we’ve been able to create around here at ONeill & Bergado. Now we get to be the ones helping San Francisco Bay Area people like you pursue THEIR dreams. So, as I gather at my table with family and friends this week … I find myself thankful forpeople like you. Thank you for your trust, for your business through these difficult years… and for making my first steps into starting and running a firm so rewarding now. And, here’s a little advice for this week: Whatever difficulties you and your San Francisco Bay Area business happened to have experienced the past two years, find some space for thankfulness. There are hidden gems in the many trials … and hidden fears lying within the windfalls. Finding and savoring the good will help you and your team thrive in the midst of chaos and pressure. Enjoy your holiday, be thankful, and make some room for the best. Warmly, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Tax Planning

How Your San Francisco Bay Area Business Can Fight Inflation

ranjan.254 / June 20, 2025

Whether you like it or not, you’ve most likely found yourself in a fight against inflation. Somebody hikes prices on your supplier and suddenly your supplier has no choice but to increase the price on you. Then you have no choice but to raise the price on your customer – who (even if they don’t tell you) notices … you can depend on that. Inflation is like that dung they say always rolls downhill — except the prices you pay go in the other direction. You don’t like charging your valued San Francisco Bay Area customers more… but what other choice do you have? Maybe you can’t break this cycle yourself, but you can soften the blow. And I have ideas for you today. But before I get there, let’s make SURE that your books are in order and that you are making wise year-end choices — i.e. accelerating or decelerating revenue and costs (dependent upon your tax situation) and more. If you want to get ahead of that stuff before it’s too late, find us here: (408) 241-4100 And once you’ve done so, come right back here so we can talk about pushing against the inflationary tidal wave. How Your San Francisco Bay Area Business Can Fight Inflation“It’s not what you pay a man but what he costs you that counts.” – Will Rogers As you know if you’ve had to shell out for nearly anything lately, inflation is on the rise. Of course, broadly speaking, inflation is simply costs going up. And this can be driven by a number of dynamics, but one of the most common is supply and demand. Well, we still have enough demand to go around — but in many areas, not enough supply… And so we have inflation occurring – more than 6% year over year. The U.S. Bureau of Labor Statistics says that inflation accelerated last March through September worse than any time in 2020. And it’s the worst year-over-year inflation rate in 30 years. Let’s hope inflation doesn’t go much higher. We can hope, can’t we? Still, there’s no way this doesn’t sting small businesses like yours. According to a recent survey, more than four out of five small businesses have had to increase prices – and a good chunk of their customer base is complaining even as profit margins shrink for almost half the companies responding. Not good at all – and not getting better any time soon, at least as far as anybody can predict. So what can you do? Your best (and quickest) moves One common-sense response to inflation: Save money where you can. Fight Inflation Move #1 – Reduce inventory: What you sell is more than the lifeblood of your San Francisco Bay Area business – it’s probably also one of your biggest expenses. Yet think about it. Chances are good that a lot of your revenue comes from a relatively few number of items in your inventory. Try classifying your inventory into three groups based on their value to your business. The “A” group includes your biggest moneymakers, the “B” group is somewhere in the middle, and “C” items make you the least. Once you’ve figured this out, closely watch the supply chain, especially on your A items. If your suppliers are getting prone to longer or fluctuating lead times, stock up on their items when you can. And if you’re finding a lot of items in your “C” group, maybe consider ditching a few of them. Fight Inflation Move #2 – Improve your expense tracking: This not only helps you see where your money goes, but it also keeps you out of trouble with the IRS and makes sure you take every tax deduction you’ve got coming. Check with us if you’d like specific opinions on expense-tracking software, but generally, the price of this software will depend on the size of your company. Whatever you pick, scanning receipts is bound to be better than rooting through your shoebox – and it’ll make a big difference in your annual costs. Fight Inflation Move #3 – Fine-tune your marketing: It’s probably the worst move in the business book to give up trying to acquire new customers when times get tough – thinking like that just makes a tailspin spin out faster. Still, I bet your marketing has a lot of parts that could do with some tinkering. Too often in small businesses, marketing is launch-and-forget. Make the time to take a hard look at your advertisements, for example. Which ones pull in the customers? Which ones don’t? Work on (or just drop) the clunkers. After all, you’re paying good money for those. And remember: Keeping customers you already have is always cheaper than advertising to bring in new ones. Customer loyalty also becomes even more important during inflation. Fight Inflation Move #4 – Move to a cheaper workspace: The past couple of years have been a gut reno for the work world. For a lot of workers, the office is now their dining room table. Will this continue? Who knows … but do you really need to keep shelling out for all those square feet of office space? Don’t forget the price tag of furniture, utilities, and those mountains of Keurig cups. Cheaper alternatives can include co-working spaces, either for-hire or through a partnership with another local San Francisco Bay Area business. Ask around. Inflation sure isn’t fun, but it won’t last forever (it never has). We’re in this with you and your business, and if we can help at all, please reach out. Stay safe. (408) 241-4100 To a happy and prosperous year-end… Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Tax Planning

Year-End Business Tax Strategy for San Francisco Bay Area SMB Owners

ranjan.254 / June 20, 2025

There are many of our clients for whom this time of year is like their version of the Super Bowl. Some San Francisco Bay Area businesses are earning 30-50% (or more) of their yearly revenue in this one month. Others … well, this is a normal month — except of course for all of the holiday craziness. But for ALL of our clients, this is a time where you can bring home some serious bacon. And one way you can do so is by making some tax moves before the clock strikes 12 on New Year’s Eve. Now I get it … the rush of customers and clients, strange hours, extra errands: It’s a tough time of year to think about tax. But the calendar waits for no business, and time is getting short to plan your moves. If you want to talk all of this through and get ahead of the game while you can, we’re right here: (408) 241-4100 In the meantime, let’s dive in. Year-End Business Tax Strategy for San Francisco Bay Area SMB Owners“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill Get your tax documents together to back the tax moves we talk about here and any others you might take. Consider temporary bookkeeping help through the end of this year and the beginning of 2022. Year End Business Tax Strategy #1: You’re the boss. If you have employees, you have some special tax preparations to think about concerning tax preparation this year. For one, if you have employees who worked remotely, you should find out ASAP if new laws in the states where these employees worked will create reporting and payment requirements for employment taxes. The end of the year is also a great time to make sure you’re getting the biggest tax bang out of your company’s retirement plan, anything from a SEP IRA to a Solo 401(k) to the combination of a 401(k) with a defined-benefit pension plan. Believe it or not, you have until the extended due date of your 2021 federal return to establish a qualified retirement plan and fund the plan for this year. And oh yeah: If you took advantage earlier this year of deferring payment of your portion of Social Security payroll tax liabilities that would have been due from March 27 through Dec. 31, get ready to pay half that deferred amount by the last day of 2021. Year End Business Tax Strategy #2: Timing’s everything. While we’re on the subject, wringing the most out of the business tax system often comes down to two things: deferment or acceleration. If you think you’re going to be in a higher tax bracket next year, do all your billings soon and collect on as many as you can before the end of 2021. You want that money sooner so you can be taxed on it in 2021. A much higher rate on long-term capital gains is also making its way steadily through the catacombs of Washington lawmaking – and since gain on the sale of a business or investment property is generally taxed at this rate, closing such a sale before year’s end might be the safest call. Year End Business Tax Strategy #3: You bet your assets. There’s no sign that this goody is going to change, but you should know that 100% first-year bonus depreciation is available for qualified new and used property acquired and placed in service in calendar 2021. You might be able to write off the entire cost of assets that you add this year. Regarding vehicles, passenger cars that your company puts into service in 2021 have limited deductibility, but SUVs, pickups, and vans don’t. What a deal. Or is it? This brings us to a key concept of tax planning. Examine tax breaks for whether they’ll continue: Will they be around next year? Will your tax rate be higher in 2022? You may want to wait and get the break then to lower your 2022 taxable income. Year End Business Tax Strategy #4: It’s your loss. The pandemic might have made this … well, let’s call it a “robust” area of activity for some businesses in recent years. Hope you weren’t one of them, but if you did get dinged on a few deals there are definitely some ducks you want to get in a row regarding losses. Did you have bad debts in 2021? You can get a write-off if that debt is wholly uncollectible by the end of the year. Damaged or abandoned property can generate ordinary losses for specific assets; so can some insolvent subsidiaries. Also, make sure that your business has filed claims for all net operating loss (NOL) carrybacks. You still have until Dec. 31 to file for NOLs originating in 2020. Year End Business Tax Strategy #5: Credit due. The taxman isn’t completely without heart, and the feds, along with a lot of states and local governments, offer a lot of tax credits for things like research and development, innovation and technology, renewable energy, and investing in low-income communities. Stroll back through your 2021 memory lane to make sure you’re claiming all the tax credits you might have coming – and, just as important, begin eyeing possible tax credits for your activities planned for 2022. This is just a sample of business tax strategy to help you save before the end of the year. We can also discuss if your San Francisco Bay Area company is the right kind of business entity for the best tax leverage or how our good state’s taxes might influence your moves between now and New Year’s. Give us a buzz. We’d be happy to talk more about the details – and about you. Happiest of holidays. (408) 241-4100 To more holiday bacon staying in your pocket, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Holiday Prayer

Patti ONeill and Gale Bergado’s “Help Us to Remember” Holiday Prayer

ranjan.254 / June 20, 2025

It’s Monday the 20th, as I put this together, and many of our San Francisco Bay Area clients and friends are gearing up for a very different kind of holiday week. I’m very aware that while the holidays are a time of joy for many, they are just as often a time of pain for a significant portion of my contacts as well. That’s probably especially true this year. Missing loved ones, loneliness, and pain can sometimes be the most prominent decorations of this season, and if that’s the case for you, know that you are not alone and that you are loved and appreciated. Not only by us here at Team Patti ONeill and Gale Bergado, but undoubtedly by more people than you could possibly imagine. THAT is the bottom-line, real-world truth, whether you believe it or not right now. And by the way, we are still meeting with San Francisco Bay Area clients to help them with year-end issues, so feel free to use this: Patti (408) 241-4100 Gale 408-775-7800 (I can’t guarantee our availability, as we have a LOT of client work to handle these few days before year-end … but we’ll do our best!) And, while I often write about important business, financial, and tax-related matters, I thought I’d share with you my annual prayer for the holidays. It’s worth printing and clipping near your monitor, so you can remember it, even beyond this week. I can’t take credit for its authorship, and I don’t honestly remember where I got it. But it’s good. Patti ONeill and Gale Bergado’s “Help Us to Remember” Holiday Prayer“There are no strangers here; only friends you haven’t yet met.” – William Butler Yeats “God, help us to remember that the jerk who cut us off in San Francisco Bay Area traffic last night is a single mother who worked nine hours that day and is rushing home to cook dinner, help with homework, do the laundry, and spend a few precious moments with her children. “Help us to remember that the pierced, tattooed, disinterested young man who can’t make change correctly is a worried 19-year-old college student, balancing his apprehension over final exams with his fear of not getting his student loans for next semester. “Remind us, Lord, that the scary-looking bum, begging for money in the same spot every day (who really ought to get a job!) is a slave to addictions that we can only imagine in our worst nightmares … “Help us to remember that the old couple walking annoyingly slowly through the store aisles and blocking our shopping progress are savoring this moment, knowing that, based on the biopsy report she got back last week, this will be the last year that they go shopping together. “Father, remind us each day that, of all the gifts you give us, the greatest gift is love. It is not enough to share that love with those we hold dear. Open our hearts not to just those who are close to us, but to all humanity. Let us be slow to judge and quick to forgive, show patience, empathy, and love. Amen.” Warmly, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Author name: ranjan.254

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