San Francisco Business

The Word on Payment Methods for San Francisco Bay Area Businesses

ranjan.254 / June 19, 2025

…payment methods! Try to come up with one thing that’s more important to your San Francisco Bay Area business than taking in revenue smoothly. Yeah, I couldn’t, either. And making sure that revenue is coming in becomes almost an obsession when you’re feeling the squeeze of inflation on your profit margins. Though talk of recession is hanging in the air, it doesn’t mean you have to passively wait for its effects. You can make a plan to survive it and even give your profit margins a boost. Want help planning for the future of your business? That’s why my team at ONeill & Bergado is here. Schedule a time with us to get the ball rolling:Patti (408) 775-7790 408-775-7800 When it comes to getting paid, opening every channel seems like the best plan. But make sure you know what each channel involves before you do – like fees, rules, taxes. Let’s take a look… The Word on Payment Methods for San Francisco Bay Area Businesses“Do something for somebody every day for which you do not get paid.” – Albert Schweitzer There are more ways than ever for your company to get paid with each choice having good points and bad for convenience, speed, and security. Let’s look at the options and see if you’re using the best payment methods for you. Is cash king? Maybe, maybe not. You get your payment on the spot, there are no sneaky fees (as with many other payment methods), and with diligent recordkeeping, you won’t get into tax trouble. If you sell relatively inexpensive items or services from a brick-and-mortar store, cash might be best. Yet you might be surprised how many people don’t carry cash anymore, and your customers aren’t likely to make a major purchase with cash. And a lot of cash on your premises, frankly, can make you a target. Did we mention diligent recordkeeping to avoid tax trouble? We mean really diligent. You have to make a special report to the IRS if any transaction involves more than 10 grand in cash. (Reach out to us with any questions about this.) Give yourself credit Credit cards (which consumers seem to prefer more than debit cards) can make a smooth transaction on both sides of the checkout. Taking card payments can expand your pool of customers and, via deposits right to your bank, streamline your revenue without you keeping a lot of cash on hand. They’ve also been shown to increase impulse purchases. This convenience comes at a price for you in the form of multiple fees (such as per-transaction and monthly) or special equipment such as card readers (which can cost up to a grand or so). Note that fees for debit card transactions are capped but credit card companies set the fees for their cards’ transactions. And with a cash purchase, the buyer has to show up and plead their case to get their money back. Chargebacks for returns from unhappy credit card customers can ding your account without warning. Some banks also hold merchants responsible for credit card fraud, a potentially expensive liability especially if you can’t process more-secure chip cards. The quaint paper check is about as far as you can get from microchip technology. Yet some older customers prefer writing checks, and some businesses still take them – all you need is a business bank account and a smart acceptance policy. Best to take only checks from well-known or in-state banks or to use a third party to verify the quality of the check. Electronic processing of checks can come with a service fee. Customers can stop payment on a check. And of course, checks can bounce. Not only does this sometimes nick you with a fee from your own bank but getting your money can then become an especially long process. And it could go all the way to small claims court or end with you hiring a collection agency. Other payment methods Mobile: Probably as many people own smartphones as hold credit cards – maybe more – and payments are usually fast and convenient, but you may have to worry about security, frequent app updates, and compatibility issues, especially if customers don’t have iPhones or Androids. Electronic payments: Again, it’s fast and easy, especially if you have international customers. These are also pretty much indispensable if you sell online; they’ll calculate the sales tax for you. Fees tend to be higher here than with other methods. Autopay: Customers often find this the best way to pay for subscription services, and you get your money regularly without having to send more than maybe an annual reminder to re-up. That can also produce problems for you, such as overdraft charges when your customer can’t make the payment and after-the-fact (sometimes angry) cancellations and demands for refunds. Email invoicing: Good if you provide a service. Your bill goes out fast, which can produce a faster payment. It also makes your bookkeeping and accounting easier because it’s electronic, and you won’t have to track down paperwork. It doesn’t always work as well for retail, though, and there’s always the chance your bill will wind up overlooked in a customer’s spam folder. Some vendors Here are a few household names that offer options, just to get you started. (We can recommend others that might be better for you.) Paypal: Mobile, online and in-person payment. An online transaction fee of about 3.5%, about 2% for in-person payments using a QR code. Various fees for other services such as credit and debit card payments. Venmo: No set-up fee, a seller transaction fee of about 2%, no monthly fees. “Profile” needed. Other fees for such features as electronic withdrawals. Quickbooks Payment: No monthly or set-up fees. Rates from 1% for ACH transactions to 2.4% to 3.4%, depending on how the transaction is processed. In this day, setting up a plethora of payment methods is probably a good call. And you especially want to consider advancing your options as the world evolves and new methods hit the scene. Even with this list of pros and cons, we understand if you still need

Business Growth

Changing Your San Francisco Bay Area Business Structure – A Savings Opportunity?

ranjan.254 / June 19, 2025

Prepare, prepare, prepare. As a recession is bearing down on us all, figuring out how to prepare for economic downturns is something you should be concerned with in your San Francisco Bay Area business. I know I am. Now, while you and I can’t prepare for every eventuality, we can put systems and plans in place that will help our businesses face the most difficult ones. Like what I’m talking about today… taking a close look at your business structure and seeing if making a change would save you money in the long run. As one example – are you prepared for the possibility of a natural disaster striking your area? Depending on what you do, that can have catastrophic effects on your business. You can come up with a plan. The Small Business Readiness for Resiliency program is a good resource to get you started. And of course, I’ve been sharing my tips and strategies over the last couple of months in my inflation series, to help you make plans for an even thinner “economic winter.” We can help you prepare in other ways. Starting with your tax situation. There are things you can do now – moves you can (and should) make – to help you save money and get all the deductions you are eligible for in your business. Use this right here (sooner is better than later): (408) 775-7790 Now for the final installment of my inflation series… Changing Your San Francisco Bay Area Business Structure – A Savings Opportunity?“Change before you have to.” – Jack Welch How you organize your operations makes a big difference to your bottom line. The same holds true about structuring your San Francisco Bay Area business. You may have different reasons for changing your company structure, such as an expansion of personnel, products, funding; profitability; or asset protection. This week our inflation series wraps up with a broad overview of the financial aspects of business entities. Business structure types One of the first and more variable expenses for a business entity is taxes. Yet the same complex taxes that can save a company and its owner money can also mean more expensive tax prep and setting up your new business structure. On the other hand, the more complex the structure the greater your personal protection against business debt. Here’s a look at some of the most common entity types and their expenses and potential savings. Sole Proprietorship. This may be your best path if you like doing most of the work, taking all the chances, and reaping the rewards. This is also the most common type of business entity – almost 30 million of them in the U.S. Sole proprietors are liable for the company’s liabilities, debt and losses – your personal assets are on the line. You pay the taxes of the company, often through quarterly self-employment tax; your income is also taxed. These entities are cheap (if not free) to form but obtaining future capital to expand can be harder than with other business structures. Partnership. You own and operate the business with at least one other person. There are general partnerships where the company is owned by two or more individuals who run it as partners or co-owners; limited partnerships with at least one general and one limited partner; limited liability partnerships where owners aren’t held personally responsible for the debts or other partners’ actions; and LLC partnerships that can have two or more owners, who are called members and whose personal assets are protected. Your personal financial liability is diffused; so are your profits. Partnerships must file an annual information return to report the income, deductions, gains, losses, and so on from operations but they don’t pay income tax. Many in partnerships and other entities can take a 20% tax deduction on their “qualified business income” (QBI) – check with us on this, though, as there are a lot of rules. Limited Liability Corporation (LLC). An LLC exists as a separate legal entity that protects its members from personal liability for business doings. Registration costs are generally in the low to mid-three figures, depending on your state. Services are available for you to set up an LLC, too, which are usually quick and reasonably priced. Raising capital can take more work, time, and money than with other entities. For taxes, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation. Corporation and S corp. Money and tax considerations get more complex with these entities. (We’re happy to advise further – give us a buzz.) A corporation is a separate taxpaying entity that can elect to be taxed as a pass-through entity – a “subchapter S election” that requires filing an IRS Form 2553. Other conditions include a limit on the number of shareholders. 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. They also have to pay FICA taxes on salary compensation to owners and not on the remaining profits. The IRS stresses that S corp owner-employees must be paid “reasonable compensation” for their services. Some states also have special rules for S corps. C corp. Your corporation can also elect to be a C corporation. The owners are taxed only on the amount of earnings they receive as dividends — not the earnings the corporation retains. Owners can sometimes even get out of capital gains taxes when they sell certain stock of the company (on this and all tax matters, check with us). C corps can be yet another structure to protect assets – and attract investors as well as live under a lower tax rate than S corps. Nevertheless, a recent study found that some startup C corps would have saved money if they’d formed as LLCs. In a C corp, the company itself is taxed on income and any additional profits left over and distributed to shareholders (usually as

Employee Benefits

What San Francisco Bay Area Employers Should Know About Employee Satisfaction

ranjan.254 / June 19, 2025

It happened: Silicon Valley Bank sold. Well, at least part of it. The bank’s deposits, loans, and 17 branches — scheduled to reopen today — were snagged by First Citizens BancShares, a Raleigh-based bank. (About $90 billion of assets still remain with the Federal Deposit Insurance Corporation.) The hope is that this sale will “instill confidence in the banking system.” So far, it seems to be working. But it’s really too soon to tell. There are signs I’m seeing about the economy that should cause you concern. But with the changes in the banking world and all the economic hysteria flying around, remember: A strong business is made of more than just money. Don’t fall into the panic trap and let it steal your vision for your company. There are simple yet powerful things you can do right now for your San Francisco Bay Area business — despite all the uncertainty out there. If you need some inspiration, let’s find a time to chat: (408) 775-7790 Last week, we looked at building a referral team for your business as an indirect way to strengthen your financial framework. But here’s the key to that approach: If you’re going to have referrals, your employees need to be ready to handle the new business. Now is not the time to be having customer service issues or worn-down employees who feel underappreciated. In other words — you need to keep your team happy. It can seem like an impossible feat, but a little goes a long way. And when you have a team that’s enjoyable to be around AND gets things done… that’s when the magic happens. Here are some ideas for you: What San Francisco Bay Area Employers Should Know About Employee Satisfaction “Happiness is waking up, looking at the clock and finding that you still have two hours left to sleep.” – Charles Schultz The good news: Four out of five workers told a recent survey they were optimistic about their career and job prospects. The bad news: One in four also said they didn’t like their jobs, almost one in three would quit without even having another gig lined up, and more than half are looking for a job now or expect to soon. Your employees? No way, you think. But how do you know? Any way you cut it, those numbers indicate that you have a strong reason to keep your workers happy. How can you give them what they want without breaking the bank? What are they unhappy about? This is the work world, not an unending honeymoon. And why should you be expected to have to provide somebody happiness? You shouldn’t — and let’s face it, you’ve never going to please everyone. But bear in mind those turnover numbers — and consider that it can cost you months, if not years, of an employee’s salary to replace them. Signs of an unhappy worker aren’t too different from signs of an unhappy person in general: bad attitude, lack of engagement, and productivity fall off. There usually isn’t a single reason for somebody’s dissatisfaction, but some problems do crop up often in surveys: low pay (a big factor, but usually not the only one causing an employee to leave), lack of appreciation, bad leadership, no road for growth, and crummy work-life balance. Let’s look at a few of those. Shifting your focus Remote work was once a perk. Post-pandemic, it’s become an expectation of many San Francisco Bay Area workers — and the push-pull of many relationships between workers and bosses. One recent news story even said that many bosses just wanted people in an office because it makes them feel better. (Even if it does make you feel better, best to not mention it …) You can appreciate remote work as a way to show gratitude and build loyalty. And you may already be using some of the best strategies for it, such as a partly remote work schedule and Zoom meetings. Habits die hard — but shift your focus from the hours in the office to the workloads and their results. Is a project on schedule despite people not being on-premises on the same days? Are your people getting more done at home since they don’t have to commute? Do some folks seem more productive outside traditional hours of work? Freedom to choose when to work can be a strong motivator. Recognize and reward “Throwing money at the problem” is often trotted out as a pricey excuse for lazy management — almost as often as employees complain about low pay. Is your pay (and benefits package) in line with your industry and location? Check your professional networks. Have employees’ responsibilities increased while pay hasn’t? That can be a turnover time bomb. Raises after the annual review are fine, but smaller, frequent rewards tend to be more effective — even as frequent as every week or two. Extra paid days off can work well (don’t forget their birthdays). Document the rewards (who gets what when and for doing what) and send word of it downstream to your managers and supervisors. Peers should also be allowed to nominate peers. And rewards don’t always have to be material. It’s amazing how far a well-timed “thank you” will go. Learning and advancement A tangible career path on the job is a proven way to energize employees (at least the ones who’ll appreciate the chance — coincidentally, probably the ones worth keeping in the first place) and foster longer-term loyalty. This offering can involve training, mentoring, letting them know about continuing education (and maybe chipping in for the tuition), and even just giving them more decision-making authority. Check with your senior staff. Is anyone willing to mentor a younger staffer? Train a few on some area of expertise? This is cheap, easy to set up, and solidifies loyalty and camaraderie. Listen up Should you survey your staff to find out what they want? Might be a good idea — people will often write things down anonymously that they’d never tell a boss face to face. But

Business Valuation

Navigating Bank Failures in Your San Francisco Bay Area Business Right Now

ranjan.254 / June 19, 2025

Memorial Day was this week. The unofficial start of summer. I like to remember that when things are unpredictable and even a bit hairy (like a shifty economy, bank failures, debt ceiling crisis), normal life still goes on. People will still prep their grills. They’ll whip up their mom’s potato salad recipe. Celebrations with friends and family in the backyard will still happen across the 50 states. It’s always good to keep that in perspective. As a business owner, you’ve probably gotten good at managing crazy for a while now. Running a business in our post-pandemic economy takes a special kind of chutzpah. That’s why I want to jump into part 2 of my banking crisis articles. I’ll get back to the second half of our talk about the new FinCEN reporting requirements soon. But today, my goal is to help ease your mind about the topsy-turvy economy and equip you to navigate it. Naturally, I won’t cover everything about navigating bank failures in this article. There’s a lot more to be said. If you want to talk about your business goals for this year or how to take this whole bank failure impact in stride, let’s get something on the calendar:Patti (408) 775-7790 Gale 408-775-7800 Until, then, I’ve got some thoughts on how you can carry your San Francisco Bay Area business forward in this present moment… Navigating Bank Failures in Your San Francisco Bay Area Business Right Now“Banking is very good business if you don’t do anything dumb.” – Warren Buffett It takes a lot of moving parts to keep a business running, no matter how small or gargantuan it may be. Some of those things your business relies on involve outside institutions. (As much as we like to think we operate in our own bubble… that is rarely the reality.) Aside from your utility companies, your bank is probably the outside institution that’s most vital to your small business. Which is why, in the midst of a banking crisis, you might ask, “Is my bank in trouble?” Accusations keep flying on Capitol Hill as lawmakers grill bank execs. Warren Buffett himself has warned that the banking crisis isn’t over (though he adds that depositors generally shouldn’t worry). A recent survey showed small-business owners divided between those who have confidence in America’s banking system and those who don’t. Almost a third said they weren’t going to open a new bank account anytime soon. A slight majority think their business capital is secure — but fewer are finding it easy to actually access the capital they need. Throw in nagging inflation and frequent hikes in interest rates (though both might be slowing this summer)… and the banking crisis can feel like a worry that’ll break the camel’s back. Allow me to comfort you, if I may: It isn’t. Navigating bank failures is possible for you and your company… with perspective, caution, and a sharp eye for options. Navigating bank failures means new kinds of risks When bad asset allocation, sketchy investment, and lax risk management rattle banking — and Congressional inquirers think all of those apply to the current crisis — it’s only natural that other businesses like yours start thinking about new kinds of lenders. For instance: Approaching one of these institutions means you have to weigh a fresh source of capital against new and unknown risks, a common problem when a mainstream industry as vital and big as banking hits troubled times. How much help is the FDIC? But even when navigating bank failures, common sense still prevails. If you are looking for a new bank, you don’t want to jump too quickly only to find yourself at a new institution with hidden higher fees and other problems you didn’t have time to spot. You should also know that your money also has a backup (within certain conditions). The Federal Deposit Insurance Corporation, created 90 years ago as thousands of banks failed in the Great Depression, insures bank deposits up to 250,000 dollars. The insurance amount is per depositor, per insured bank, for each account category. Seems simple, and maybe it is for individuals. But is it still giving enough coverage to businesses these days? The FDIC itself has suggested “Targeted Coverage” for different levels of deposit insurance across different types of accounts, with a focus on higher coverage for business payment accounts. The FDIC also noted how individuals can often do what businesses can’t: Diffuse their accounts and their money across multiple banks to make sure every account is under the threshold of FDIC coverage. For now, until some sort of Targeted Coverage becomes a reality, it could be a smart move to try doing this as much as possible with your business accounts. Does size matter? In one of those surveys we mentioned, small-business owners are fairly split in preferring to work with large, regional, and community banks, but they did report that right now the regionals and community banks were harder to access capital from. That’s also the order in which respondents expressed confidence in their bank now — “bigger” does seem more secure. But is it? Unrealized losses are on the books of many regional, mid-sized banks — yet some benefited from the business transferred from the likes of Silicon Valley. Small businesses also still get more loans approved by small banks than by big ones. Navigating bank failures involves getting creative If you don’t want to go through a bank at all for capital, think about the U.S. Small Business Administration, online lenders (where terms are usually easier but the interest rates and fees are higher), or a credit union. Credit unions also offer traditional banking services and come in sizes ranging from small and local cooperatives to large institutions with a nationwide presence and thousands of participants. Compare credit unions using the same factors you’d use when shopping for a bank: fees, customer service, branch locations, online access, and so on. They’re also not-for-profits, so your fees might be lower, which is a nice little cherry on top. Finally, there’s the more

Business Growth

Alternative Small Business Financing Options for San Francisco Bay Area SMBs

ranjan.254 / June 19, 2025

I’ve talked to you before about the ERC scams running rampant and how to steer clear of them, but there’s a recent update worth mentioning: They’re also partially responsible for the IRS’s delay in issuing ERC refunds — especially for small businesses. And funds like that could be exactly the kind of boost needed for struggling businesses. Now, maybe the ERC credit isn’t for your San Francisco Bay Area business (or you’ve already received it), and you’re still in need of a cash flow infusion. The banking crisis certainly isn’t making that easy for you. Which is why I want to talk about some alternatives to bank loans in today’s article. Before I do, though… Besides getting capital, another strategy you might consider to boost your biz is working with large businesses. The U.S. Chamber of Commerce is hosting a little forum on June 22 to talk more about that. It seems big businesses see the value in working with and creating partnerships with small businesses like yours. Take Apple. They’ve recently been working on Tap to Pay capabilities for secure payments for businesses (among other things). And they’re not the only ones making moves to help improve various aspects of business operations. And though I’m no big business, I am here, looking out for you and your business’s future especially when it comes to tax obligations. If we haven’t talked yet about optimizing your tax situation for next year’s filing, let’s make some time. Reach out to me here:Patti (408) 775-7790 Gale 408-775-7800 Now, for a look at alternative small business financing options for your San Francisco Bay Area business… Alternative Small Business Financing Options for San Francisco Bay Area SMBs“Fortune befriends the bold.” – Emily Dickinson Sure, banks come to mind first when your small business needs capital. But in these days of higher interest rates and tighter lending, it pays for you to know where else to turn for financing. Because sometimes, banks are the best option. And sometimes, they aren’t. Last time, we looked at the process for getting a bank loan. Today, let’s examine a few lenders for your business other than banks. Alternative Small Business Financing Option 1: Small Business Administration The U.S. SBA offers a ton of loan programs through lenders. One of them is the 7(a) Program for “businesses with special requirements.” The SBA bills it as a good option when real estate is part of a business purchase, but it can also be used for short- and long-term working capital, refinancing debt, and purchasing of machinery, equipment, furniture, and supplies. The max amount for a 7(a) is 5 million dollars. Eligibility is based on what your business does for income, credit history, and where you operate. Repayment is usually monthly, and generally these loans require a 10% down payment (potentially more for startups). To apply, you’ll need an SBA form and much the same paperwork as for a bank business loan (though this can vary by lender): financial statements (including personal and projected), P&Ls, owners’ info, business licenses, loan application history, and tax returns — among other documents. The SBA also has other biz financing, including its SBA Express Loan. Approval times can be faster depending on the lender. Repayment terms vary with loan and purpose. Interest depends on the lender but does max out at prime plus 6.5% for loans of 50,000 dollars or less, and prime plus 4.5% for loans greater than that. Express loans for more than 25,000 require collateral. Funding speeds also vary by lenders, but you often get your money within 90 days. (If you’re interested, you can find SBA loan application info here and a lender-match tool here.) Alternative Small Business Financing Option 2: Online lenders Just like about everything else, business lending has blossomed on the internet. These lenders can give faster access to money for your business — sometimes in just days — but at (not surprisingly) higher rates and fees and lower maximums. Often the lenders are financial tech companies rather than banks. Their eligibility requirements can be more flexible and the documentation requirements easier. No interviews will be in person (up to you if this is a plus or a minus). They’re also more likely to work with startups or businesses whose credit has been dinged. Typical online financing options include: For businesses, rather than individuals, paying extra to get the fiscal fuel for initiatives may be worth the price. (Nerdwallet has a good interactive layout of various lenders where you can wash a few of your company’s specifics to see what you get.) … Still more small business financing options Each alternative small business financing option has its pros and cons, but the point is: You’ve got a lot more options for funding than just the bank. If you are on the hunt for more funding for your business, we’d love to sift through the options with you and discover what would be the optimal fit. Don’t hesitate to reach out and let us know how we can help. Here for you, Patti ONeill and Gale Bergado

The Word on Payment Methods for San Francisco Bay Area Businesses

Changing Your San Francisco Bay Area Business Structure – A Savings Opportunity?

What San Francisco Bay Area Employers Should Know About Employee Satisfaction

Navigating Bank Failures in Your San Francisco Bay Area Business Right Now

Alternative Small Business Financing Options for San Francisco Bay Area SMBs

Get Directions

(408) 241-4100

Contact Details

Our Most Requested Services

Quick Links

Importaint Link