Belk On Business

Indicators of Financial Issues – Belk on Business – Episode 187 There are indicators that reflect when there is a financial issue with the business. 1) Inability to pay bills on time – this will hurt the reputation or brand of the business. A business needs to keep good relationships with its vendors, partners and team members. 2) Ignoring the budget or not making the proper revisions on the budget 3) Not having any savings for emergencies or growth 4) Debt/liabilities increasing due to inability to maintain operating expenses 5) Owner shifting to draws or paying employees as contractors to reduce payroll tax exposure 6) Focusing only on profit = failure to invest in culture and impact to fulfill purpose Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/sSKn4XFEAAs

Money Handling Mistakes Pt 2 – Belk on Business – Episode 186 There are many mistakes a business owner can and does make, some which could be fatal to the business either directly through mismanagement of the finances or indirectly through failure to follow proper internal controls or following basics of asset protection. Best to run finances in a proactive manner, not a reactive one making tweaks and not major adjustments which can shake a business and its culture to the core. 1) Ignoring the numbers – for many businesses, especially in the first phase of business ignores the accounting/finance function of the business until either they are needed for loans or taxes. This results usually in overpaying taxes, inability to have an understanding of what is and isn’t working in your business and an inability to plan effectively towards profitability and scaling. Can also result in making poor financial decisions such as purchasing items just for tax deduction purposes or purchasing what the business doesn’t re

Money Handling Mistakes – Belk on Business – Episode 185 There are many mistakes a business owner can and does make, some which could be fatal to the business either directly through mismanagement of the finances or indirectly through failure to follow proper internal controls or following basics of asset protection. 1) Co-mingling of business and personal finances – this goes beyond paying personal bills with the business checkbook but can pierce the corporate veil. - Asset protection issues – creates a risk exposure - Internal control issues – creates a risk with banks and regulators - Loss of self confidence and confidence others have in you - Decreased business value – don’t know true business performance whether it is paying personal bills and trying to expense them in the business or pulling cash out of the business beyond payroll and properly determined and documented distributions 2) Mismanagement of debt – debt stress tests the business and will magnify any other financial mismanagement mistakes -

Board Member Qualities – Belk on Business – Episode 184 Qualities as a Board Member: - Experience - Perspective - Careful listener - Willing to be contentious - Finds satisfaction in the endeavor Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/TtO10tC941M

Corporate Transparency Act – Belk on Business – Episode 183 In 2021 as part of the National Defense Corporation Act, the Corporate Transparency Act was enacted. Its intent was to protect national interest against money laundering and financing of terrorism. The objectives to help prevent the misuse of certain types of entities (namely LLCs, corporations and partnerships) by “bad actors” by collecting beneficial ownership information of any entity organized in the US and to create a database of the information in a manner that is useful. The BOI report (beneficial ownership information) is to be filed with the FINCEN (financial crimes enforcement network) which is part of the US Treasury Department by any reporting company. A reporting company is any company (namely LLCs, corporations and partnerships) that registers with a state’s secretary of state (or state equivalent) or a foreign company registered to do business in the US. Trusts are generally excluded from needing to file the report since they aren’t

Entity Compliance in 2024 – Belk on Business – Episode 182 As we begin a new year, think about where you conduct business at the state and local level (physical location, on site sales, online sales, remote employees) 1) Register your business with any state you conduct business that requires registration (income tax, local tax, sales tax, payroll tax, etc.) 2) Annual report requirements with the Secretary/Department of State 3) Obtain licenses, permits, registrations with local municipalities 4) Corporate Transparency Act – Beneficial Ownership Reports with the FinCEN division of the Department of Treasury 5) Generate a list with timeline reports need to be filed and paid (payroll taxes, sales tax, federal tax returns, state tax or franchise tax returns, other state and local filings) 6) Know what triggers a compliance action (new employee, new type of revenue stream, new business location, locations where selling products or providing services, remote and online sales) Subscribe on these platforms: Apple P

When is my Business Considered a Hobby? – Belk on Business – Episode 181 IRS Section 183 outlines what activities not engaged in for profit and the tax implications. The IRS states that a business has to be carried out “in a businesslike manner” with “complete and accurate books and records,” says the IRS. The taxpayer must put in time and effort “to show they intend to make it profitable,” and has to depend on income from the activity for their livelihood. Section 183 says that if an activity is a not-for-profit hobby, then the taxpayer can’t take deductions for it. The IRS also says a business must show a net profit for three out of its first five years of operation, otherwise the agency considers it a hobby for tax purposes. This rule is not the only deciding factor when making the analysis. There are other considerations such as: Did they make a profit from a similar activity in the past? Does their current endeavor profit in some years and by how much? What is the activity and why are they doing

J.D. Rockefeller, Purpose and Numbers – Belk on Business – Episode 180 John D. Rockefeller considered the wealthiest American in US history defined part of his purpose as follows: “It has seemed as if I was favored and got increase because the Lord knew that I was going to turn around and give it back” It was said by historian Michael D. Simmons that Rockefeller was “singularly gifted to acquire massive amounts of wealth precisely to use the money to do God’s work in the world. Rockefeller always adverted to his own adherence to the doctrine of stewardship – the notion of the wealthy man as a mere instrument of God, a temporary trustee of His money, who devoted it to good causes.” Rockefeller started his professional career as a bookkeeper. He has a fascination with numbers and understood that knowing and understanding them was paramount in measuring performance, identify opportunities and plan for the future. He talked about how he put faith in the numbers. They provided the following: 1) Guided decis

Top Common Bookkeeping Issues – Belk on Business – Episode 179 1) Invoice and receipt tracking 2) Handling of expense reimbursements 3) Proper classification of employees 4) Monthly reconciliations 5) Data handling 6) Sales tax and income tax exposure 7) Handling of petty cash 8) Too few or too many accounts 9) Handling bookkeeping internally without oversight or review 10) Ineffective communication Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/btgbNcVvX6w

2023 Year-End Tax Planning – Belk on Business – Episode 178 Topics: - Ordinary and necessary expenses - Hiring minor children - Business travel - Classification of expenses - Business start up and expansion - Bonus depreciation - Augusta Rule - Auto expenses - Meal expenses - Home office deduction - Retirement accounts - Section 105 medical plans - Health savings accounts - Defined benefit plans - Business structure and taxation - ROBS - Tax loss harvesting - Real estate taxation - Real estate professional status - Material participation - Solar and other investment tax credits - Form 8300 - 2024 Beneficial Ownership Information filings Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/hPFa9e0nmN0

Five Plans Everyone Needs – Belk on Business – Episode 177 1) Spending plan 2) Compensation Plan 3) Savings Plan 4) “What if” Plan 5) Debt elimination plan Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/mADsYEBCEAw

Reasons Businesses Fail Pt 4 – Belk on Business – Episode 176 1) Poor management or leadership of team 2) Poor treatment of customers and/or vendors 3) Lack of diversity of thought 4) Not focusing on and leading with your differentiator 5) Failure to plan for your future or the future of the business Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/C2goeRfQOKs

Reasons Businesses Fail Pt 3 – Belk on Business – Episode 175 1) Not enough knowledge of the numbers 2) Poor tax management 3) Poor decisions regarding debt 4) Wasteful spending 5) Failure to protect equity Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/nOfF_1A4p_U

Reasons Businesses Fail Pt 2 – Belk on Business – Episode 174 6) Not taking ownership 7) Failure to be purposeful regarding work-life harmony 8) Poor time management 9) Failure to take adequate risk 10) Poor evaluation of customers Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/KH7bFuJKpBk

Reasons Businesses Fail Pt 1 – Belk on Business – Episode 173 1) Losing sight of purpose. 2) Stop investing and developing. 3) Poor leadership and management 4) Spending time on tasks that we aren’t good at or don’t push the business forward. 5) Failure to be kind. Subscribe on these platforms: Apple Podcast: https://apple.co/2Zp6hgj Spotify: https://lnkd.in/gcWDnFZ Stitcher: https://bit.ly/34aRgO2 YouTube: https://youtu.be/YfaZ_tuRp8U

Meaningful Communication with Team Members – Belk on Business – Episode 172 Much of our communication with our team involves tasks and the best leaders and managers also spend quality time having conversations with team members on what matters most to them. Most employees want to please their employer if the vision is clear and the culture is one that includes good collaboration and sincere care. Topics to include to have meaningful conversations with team members: 1) Metrics that matter to the company – what KPIs are they responsible for and how does their role in the company play in the company’s performance. Am I just a pawn in someone else’s game or does what I’m doing matter? 2) What goals do you have that we can help you achieve? What career path does the individual desire? Some are happy with a low stress, repetitive workflow and others want to be challenged and pursue promotions within the company. Try to have a good understanding whether the employee truly desires to stay at your business long t

IRS and Taxpayer Service Improvements – Belk on Business – Episode 171 The Inflation Reduction Act provided about $79 billion in long term funding for the IRS. The primary goals were to improve phone and correspondence response, increasing audits on taxpayer making over $400,000. The IRS has begun initiatives to improve how it serves and communicates with taxpayers, especially for low- and middle-income families and small businesses: 1) Improving the audit process for these taxpayers by more audits to be correspondence audits handled through phone and email with a single IRS representative using an improved case management system currently under development 2) Improved systems to allow taxpayers and their representatives to access their records 3) Using more and improved technology to move from paper to digital (tax returns and correspondence) – already seeing this with the IRS to accept more forms electronically as well as the IRS using more secure email and systems for communication 4) Simplifying and spe

IRS Enforcement and Improvements – Belk on Business – Episode 170 The tax code and implementation are to get us as taxpayers to act in a certain manner. Last year the IRS was granted an additional $79 billion in funding over the next ten years. Broken down into the following areas: - $46 billion for enforcement “to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities, to enforce criminal statutes related to violations of internal revenue laws and other financial crimes, to purchase and hire passenger motor vehicles.” - $25 billion for operations support will support taxpayer services and enforcement programs, including “rent payments; facilities services; printing; postage; physical security; headquarters and other IRS-wide administration activities; research and statistics of income; telecommunications; information technology development, enhancement, op

Land Trusts with Attorney Joseph Seagle – Belk on Business – Episode 169 Joe Seagle is a legal “GPS” for real estate investors and high worth individuals. Mr. Seagle’s law firm and land trust company supports real estate investors, developers, brokers, property managers, and private lenders on their land trust, private lending, and entity formation needs. Practicing law since 1996, he is licensed in Florida, North Carolina, South Carolina, and the District of Columbia. He is also a licensed Florida title insurance agent. More information regarding Attorney Seagle and land trusts, go to his website at mylandtrustee.com 1) There is a lot of confusion regarding trusts. Could you give us a high-level overview of trusts and in what situations they are most useful? 2) Should land trusts be used for an individual’s homestead property or should they only be used for investments properties? 3) Are there any types of investment property types that should not be placed into a land trust? 4) Is a land trust primarily an

Mindset of Money: Equity and Business Maintenance – Belk on Business – Episode 168 - How are we managing equity?  Are we bringing in equity participants because the business model is broken (can’t pay operational bills or make debt payments)  Ability to pay yourself a reasonable salary for the services you are providing to your business (does it align with what it would cost to replace your position in the business, and does it cover your personal expenses?) - How do we handle surplus and reserves?  Able to execute a savings plan to have a comfortable amount of cash in reserves (ideally three months of operating expenses)  Purposeful planning for savings and reserves (goal at Lodestar to purchase larger location) - Are we able to maintain the business?  Able to invest adequately in the business to properly maintain real and personal property as well as keep the business up to date technologically. - Are we receiving referrals from existing clients? - Is our best bringing us their best?  Are you top p