April 1, 2021
Published by Service2Client on April 1, 2021
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American Rescue Plan Act of 2021 (HR 1319) – This $1.9 trillion relief bill provides stimulus money to address the continued impact of COVID-19. Provisions include issuing $1,400 checks to taxpayers, increasing the Child Tax Credit up to $3,000 and the dependent care credit to $4,000, and providing funds for schools, small businesses, renters and landlords, increased subsidies for Americans who buy individual health insurance, and $160 billion allocated toward vaccine development and distribution. The bill was introduced by Rep. John Yarmuth (D-KY) on Jan. 15, first passed in the House on Feb. 27 and in the Senate on March 6, and was signed into law by President Biden on March 11. SAVE LIVES Act (HR 1276) – This bill […]
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April 1, 2021
Published by Service2Client on April 1, 2021
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In a continuously changing business environment, small businesses have a challenge to keep up. It’s especially expensive to keep pace with ever changing technology. Luckily, with affordable cloud accounting solutions, small businesses can maintain a competitive edge. What is Cloud Accounting Cloud accounting involves moving your business books online. Unlike desktop accounting systems, cloud accounting permits you to access accounting software from a web browser without the need to install it on your personal computer. Companies that offer cloud computing provide their services on remote servers and applications. For a fee, you gain remote access to the services that fit your business needs. Cloud Accounting Benefits for a Small Business Here are benefits offered by cloud accounting that enable small […]
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April 1, 2021
Published by Service2Client on April 1, 2021
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What if you could save enough for your child to go to college debt-free? It might sound impossible, but with dedication, hard work, and careful planning, you can do just that. According to Dave Ramsey, American personal finance advisor, here are the top three tax-favored plans to get started. The Education Savings Account (ESA) Otherwise known as the Education IRA, this plan allows you to save $2,000 (after tax) per year, per child. Let’s do that math. If you begin saving when your child is born and put away $2,000 a year until they’re 18, you’ll be investing $36,000. Not too shabby. And the good news is that qualified distributions are tax-free, which means you won’t have to pay anything […]
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April 1, 2021
Published by Service2Client on April 1, 2021
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In 2020, a year when all income brackets benefited from lower tax rates, the stock market took a nosedive at the beginning of the pandemic. For investors sharp enough to see the opportunity, this was an ideal time to convert a traditional IRA into a Roth IRA. When you conduct a Roth conversion, the assets are taxed at ordinary income tax rates in the year of the conversion. So, the best time to do this is when your current income tax rate is low and when your IRA account balance loses money due to declining market performance. Once you convert the account to a Roth, those assets continue to grow tax free and are no longer subject to taxes when […]
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April 1, 2021
Published by Service2Client on April 1, 2021
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The majority of U.S. industrial product company CFOs have shared concerns that COVID-19 would impact their businesses negatively. For companies that develop and manufacture products, understanding the product lifecycle and how to work around crises like the COVID-19 pandemic can be effective to help improve the longevity and success of companies. Market Development Stage According to the Harvard Business Review (HBR), the first stage of the product lifecycle is market development. This normally happens when a company introduces a new product for sale. There is usually little demand at this point; instead, demand has to be cultivated among consumers. Factors that impact the rate of introduction include the product’s novelty; how practical it is for consumers’ existing problems; and how […]
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April 1, 2021
Published by Service2Client on April 1, 2021
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The recently passed American Rescue Plan (ARP) Act of 2021 includes a provision making nearly all student loan forgiveness tax-free, at least temporarily. Before the ARP, student loan forgiveness was tax-free only under special programs. Before we look at the changes to come under the ARP, let’s look back at what the previous law provided. The Old Rules Under the earlier measure, student loan forgiveness was tax-free under certain circumstances. These special programs included working in certain public sectors, some types of teachers as well as some programs for nurses, doctors, veterinarians, etc. Essentially, you had to work in a specific field under certain conditions for a minimum length of time and some or all your student loans would be […]
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March 1, 2021
Published by Service2Client on March 1, 2021
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To provide for an exception to a limitation against appointment of persons as Secretary of Defense within seven years of relief from active duty as a regular commissioned officer of the Armed Forces (HR 35) – Prior to passage of this bill, a former service member could not be appointed as Secretary of Defense until separation from active duty for at least seven years. This legislation allows someone to be appointed after only four years from active duty as a commissioned officer of a regular component of the Armed Forces. The bill was introduced by Rep. Adam Smith (D-WA) on Jan. 15, passed in the House and the Senate on Jan. 22 and signed into law by President Biden on […]
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March 1, 2021
Published by Service2Client on March 1, 2021
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When a business moves its services online, it runs the risk of losing the close connection it had with customers. This affects customer loyalty and sometimes means lost revenue. Thanks to technology, some businesses have deployed artificial intelligence (AI) chatbots to keep customers engaged in a two-way conversation. What is an AI Chatbot? An AI chatbot is a piece of software powered by artificial intelligence that is placed on websites and other applications to interact with humans. Chatbots are not a new technology, and it’s worth noting that there is a difference between AI chatbots and flow chatbots. Flow chatbots follow a pre-determined path defined by a developer; AI chatbots are self-trained, meaning they give feedback depending on the information […]
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March 1, 2021
Published by Service2Client on March 1, 2021
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According to the National Bureau of Economic Research, in late spring of 2020 about half of American workers were working from home. Not surprisingly, many researchers believe that this pattern will continue after the pandemic is over. With this in mind, SmartAsset has examined the best cities to work from home in 2021 and evaluated them across seven metrics: percentage of those who worked at home; estimated percentage of those who can work at home; five-year change of percentage of those who worked at home; October 2020 unemployment rate; poverty rate; housing costs as a percentage of earnings; and percentage of residences with two or more bedrooms. Here’s what they learned: Scottsdale, Arizona. In 2019, Census Bureau data shows that […]
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March 1, 2021
Published by Service2Client on March 1, 2021
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If someone you know died from COVID-19 and had an existing life insurance policy, there should be no problem receiving the death benefit. The terms of a life insurance contract cannot be changed after purchase, so anyone with a policy before the pandemic will continue to be covered as long as premiums are paid. However, the life insurance industry is in a quandary right now when it comes to new applicants applying for policies. Some insurers have placed an age limit on applicants to whom they will sell policies. Travelers who have recently visited countries with a significant outbreak and people currently infected with the virus are generally asked to wait until after they have quarantined or recovered to apply […]
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March 1, 2021
Published by Service2Client on March 1, 2021
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As businesses attempt to work their way through to a post-pandemic world, there are various means to bridge the financial gap. As recommended by the U.S. Small Business Administration (SBA), some companies can use a line of credit to reach international customers or opportunities outside the United States to make up for the damage COVID-19 caused with fewer domestic sales. How can businesses use a line of credit to increase their chance of survival and pivot to profitability as we move through 2021? According to Debt.org, a business line of credit functions like any other line of credit that uses revolving debt. Businesses use a portion of their line of credit to meet financial obligations and repay based on the […]
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March 1, 2021
Published by Service2Client on March 1, 2021
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Good tax professionals ask the right questions to ensure they understand your situation and can help you to the best extent the law allows. Given the host of pandemic-related tax changes for 2020, it’s good to keep these four questions below in mind. If your tax preparer doesn’t ask these questions in your tax organizer or during a meeting, raise them yourself. 1. Did you receive your stimulus payment? Not everyone received all the stimulus they were entitled to. As a result, the amount of your stimulus payments needs to be reconciled on your 2020 tax return to calculate if you qualify for the Recovery Rebate Credit. The way the Recovery Rebate Credit works is that if you qualified for […]
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February 1, 2021
Published by Service2Client on February 1, 2021
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Save Our Seas 2.0 Act (S 1982) – This bill was introduced by Sen. Alan Sullivan (R-AK) on June 26, 2019. The purpose of the legislation is to improve efforts to clean up marine debris, encourage recycling and strengthen domestic infrastructure to prevent the creation of new marine debris. The bill passed in the Senate in January 2020, the House in December, and was signed into law by President Trump on Dec. 18, 2020. Digital Coast Act (S 1069) – This bill revised the National Oceanic and Atmospheric Administration Digital Coast program for critical coastal management and data tracking for the ocean and the Great Lakes coasts. It was introduced by Sen. Tammy Baldwin (D-WI) on April 9, 2019, passed […]
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February 1, 2021
Published by Service2Client on February 1, 2021
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All businesses have one thing in common, and that is processes. Business processes – whether direct or indirect – are crucial when it comes to providing products or services to customers. Business process management (BPM) plays an important role in enhancing processes and offers numerous benefits to businesses. But imagine what greater benefits can be achieved if you choose to implement a technology product that supports your specific business process management. Why BPM Software? First, a little bit about BPM. Business process management was introduced to help accomplish workflow quickly and easily. Simply put, BPM enables users to design, model, implement, automate and analyze business processes of a company or an organization. Some businesses have been doing things manually or […]
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February 1, 2021
Published by Service2Client on February 1, 2021
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Right now with everything that’s going on, navigating your finances might feel overwhelming. However, there are some strategies that will help you manage cash shortfalls. Mariel Beasley of Duke University’s Common Cents Lab offers ways to help you manage during these trying times. Use Mental Accounting Translated, this means prioritizing what’s most important and cutting back in those areas that aren’t. While pretty obvious, the finer point according to Beasley is this approach will help you stick to your spending plan by reminding you of your opportunity costs — i.e. what trade-offs you might be making with each purchase. For instance, you might not be able to buy that special something you’ve had your eye on, but you will be […]
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February 1, 2021
Published by Service2Client on February 1, 2021
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The Federal Reserve recently reported that the 50 richest people in the United States increased their net worth by $339 billion during the first half of 2020. There are two primary contributors to this near-unprecedented level of growth. The first is that many either owned or were heavily invested in tech companies that thrived during the pandemic. Increased technology demands for remote work, online shopping, streaming entertainment, and socially-distanced socializing created a lucrative COVID-19 economy in some sectors. Another reason is that the U.S. Treasury and Federal Reserve proactively infused the economy with stimulus capital. That helped mitigate long-term market disruption that might have otherwise occurred. The short explanation of how to leverage assets for greater wealth during a pandemic […]
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February 1, 2021
Published by Service2Client on February 1, 2021
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According to the World Bank Group, for businesses in emerging markets and developing economies, the bottom fourth percentile of the non-financial corporate (NFC) sector saw their balance sheets deteriorate. Looking at these businesses’ Interest Coverage Ratio, the average figure dropped to 0.06 from 0.35 between the fourth quarter of 2019 and in the midst of the coronavirus pandemic’s ongoing effects. The ICR is a measure of a firm’s ability to repay their debt in accordance to existing obligations, whereby a higher ratio indicates a better ability to do so. This is calculated by dividing earnings before interest and taxes by Interest expense. With businesses seeing losses of as much as three-quarters of revenue in a three-month timeframe, as McKinsey & […]
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February 1, 2021
Published by Service2Client on February 1, 2021
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In late December, Congress passed the Consolidated Appropriations Act, which in addition to providing COVID-19 relief provisions also included many tax provisions and extenders. The Act contained many COVID-related tax provisions, as well as a slew of extenders ranging from one year to permanent. This article will focus on the miscellaneous tax and disaster relief provisions, which are more applicable to most taxpayers. Miscellaneous Provisions Charitable Contributions – For tax years 2020-2022, non-itemizers can deduct $300 in charitable contributions ($600 for married couples filing jointly). Full Business Meals Deduction – Typically, business meals are only 50 percent deductible; however, the new tax law provides for a 100 percent deduction for restaurant meal expenses incurred in 2021 and 2022. Low-Income Housing […]
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January 1, 2021
Published by Service2Client on January 1, 2021
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Rodchenkov Anti-Doping Act of 2019 (HR 835) – This bill was introduced by Rep. Sheila Jackson Lee (D-TX) on Jan. 29, 2019. The purpose of this legislation is to give U.S. officials the power to prosecute individual athletes who used performance-enhancing drugs at international sports competitions involving American athletes. The legislation has been criticized by the World Anti-Doping Agency (WADA) as undermining the global anti-doping movement based on international cooperation, and because no other nation has extra-territorial jurisdiction in this field. The bill passed in the House in October, the Senate in November, and was signed into law by the president on Dec. 4. IoT Cybersecurity Improvement Act of 2020 (HR 1668) – This bill requires the Institute of Standards […]
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January 1, 2021
Published by Service2Client on January 1, 2021
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5G networks promise high speeds, lower latency, and more robust security compared to its predecessors – and this has created a lot of buzz. As a result, there is a lot of competition among operators to roll out the network while manufacturers are already producing 5G devices. The deployment of 5G around the world has also been facilitated by a need for always-connected computers, widespread internet of things (IoT), and dependence on smartphones. All of this is constraining the 4G LTE technology. With the current uptake in remote working due to COVID-19, 5G is expected to see more deployment. However, despite the promised benefits, there are varying concerns about the potential vulnerabilities of this network. Since there are various security […]
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