Evan Vitale

Accounting Professional

Evan Vitale – 2016 Might Be Good For Small Business Lending

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By Evan Vitale

How are things looking in terms of small business lending in 2016?

Well, believe-it-or-not, jumps in the interest rates might also mean good news for businesses who want to seek out bank loans in the upcoming year.

You see, banks only make money when they lend money and with higher rates, banks might be more interested in ramping up their small business lending portfolio.

According to the Biz2Credit Small Business Lending Index, the percent of loans applications approved by big banks reach 22.8%, which is the highest since the recession. The recent interest rate hike makes lending to small businesses more attractive for larger banks. The Biz2Credit Small Business Lending Index believes the loan approval percentage next year could go above 25%. Remember, higher rates means more profit for lenders.

But what about other types of lending opportunities?

Institutional investors look good. During November 2015, institutional investors approved 62.4% of all loan requests.

However, alternative lenders, smaller banks and credit unions are granting loans at decreasing rates. In fact, small banks, which usually generate a large number of Small Business Association (SBA) loans, are now approving less than half of the loan applications received. In 2014, they approved more than 50% of loan applications received.

According to Forbes, community banks are struggling to compete, so many business borrowers continue to look to other sources for funding. In addition, big banks on institutional investors, which are making loans possible via an online marketplace lending platform, are able to make quicker decisions at more attractive rates and terms for business borrowers.

Some other interesting notes from Biz2Credit:

  • Almost half of all loan applications are made via mobile units.
  • Smaller banks and credit unions haven’t kept up with technological innovations and, thus, miss out on loan deals since their application process takes longer.
  • Many times, credit unions want a borrower to come to the branch office and become a member.

Evan Vitale – Finding A Tax Preparer (Part III)

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By Evan Vitale

In our final blog post on Finding A Tax Preparer, here are some questions you can use during your own searching process. The answers you receive will help you in finding the right fit for your business.

  • Ask your tax preparer if they have any experience in your industry? Tax laws are different and specific for different businesses, so your tax preparer should be familiar with the tax laws that impact you and your firm.
  • Who will be working on your returns? Sometimes, medium and larger firms have staff or associates repair the returns. If so, what is their level of expertise?
  • What is the firm’s tax return review process? Will your returned be reviewed for accuracy, but will it also be reviewed for missed opportunities in helping you to reduce your taxes?
  • Will your tax preparer look at your past returns? If so, what will they do (or recommend) in having something different done with your current returns? Most tax preparers can suggest a least one idea of something that could have been done (and can be done) to help reduce your taxes.
  • How much can your tax preparer save you in taxes? It will be difficult to give an accurate, on-the-spot answer, but they should have a general idea after spending some time discussing your business; your financials, and looking at past returns.
  • What are the deadlines that you need to meet in order to get the proper paperwork and information to your tax preparer? Can you, as the business owner, meet this deadline?
  • Are there any tax law changes that you should be made aware of? Your tax preparer should be on top of current changes and any upcoming changes that could impact your taxes.

Be selective! And feel 100% comfortable with the tax preparer that you choose for your business. Finding the right tax preparer can make a big difference!

Evan Vitale – Finding A Tax Preparer (Part II)

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By Evan Vitale

You should feel absolutely 100% comfortable with the tax preparer you hire for your business.

During the search and interview process, make sure your tax preparer:

  • Knows the tax law extremely well.
  • Knows how to be creative legally (no, your tax preparer isn’t going to cheat on tax returns for you).
  • Asks you many questions about your business situation, so they can better understand your financials and goals. Don’t be afraid to offer valuable information as this will only help your tax preparer in offering the best tax advice.
  • Has a review process in which at least one other person in their office also reviews the final tax returns to make sure everything is correct before the returns are signed.

Ask your potential tax preparer candidate how many times their clients have been audited by the Internal Revenue Service. What was the outcome of such audits? Were additional taxes assessed by the IRS or were there no charges? Does the tax preparer offer an audit defense plan?

In Part III, we’ll offer some other prepared questions you can use when interviewing a potential tax preparer for your company.

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Evan Vitale is a multifaceted finance and accounting professional who provides Audit, Accounting, Tax, Due Diligence and Advisory services to Venture Capital Funds, Hedge Funds, Private Equity Funds, Family Offices, Small Business Investment Companies (SBICs), Funds of Funds, Other Investment Groups and their management companies. 

Today’s market has made it extremely difficult to predict what the next day will bring.  For Funds and Other Investment Vehicles, the expectations remain to balance the different opportunities with a continued focus on value creation in existing portfolios.  The key to any successful organization is building and maintaining the trust of your investors. Evan has the expertise to help you shine in your investor’s eyes and stand apart from the competition.

Connect and network with Evan Vitale on LinkedIn.

Evan Vitale – Finding A Tax Preparer (Part I)

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By Evan Vitale

Don’t wait until April 14th in order to find a professional tax preparer. If you feel you need one – and you don’t have a CPA in your team of business advisers – you should start looking for a tax professional today.

Not all tax preparers are the same.

Some tax preparation businesses will hire temp help during the busy season, while others will advertise with a simple sign nailed to a light pole.

Choose wisely.

There’s a big difference in filing simple tax returns for an individual than it is for filing local, county, state and federal tax returns for a business.

Your tax preparer should be extremely knowledgeable in tax law and should be asking you a lot of questions about your business and tax situation in order to understand your situation and goals.

In addition, a professional tax preparer would sign their name and contact information on your return should the Internal Revenue Service have any questions at a later time. Will your tax preparer help you with questions from the IRS?

Ask questions and make sure you’re hiring the best tax preparer for your business!

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Funds have special needs when it comes to finding an accounting firm to help them with their accounting, auditing, tax and financial due diligence projects. Managing a fund is complicated enough without having to build the infrastructure to have accounting and tax services handled also.

Evan Vitale helps Funds stand apart from their competition by exceeding their investor’s expectations with high quality and timely financial and tax reporting. Evan has the expertise in the private equity industry to provide a full range of services focused on the needs of the private equity firms and their portfolio companies. As changes continue to impact the industry, Evan stays informed and updated, bringing you the most accurate guidance and strategy.

Evan is constantly striving to go the extra mile.  In areas like evaluating acquisition targets, Evan works with private equity and venture capital firms to assess the viability of an acquisition and, if determined to be the best course of action, implement a successful acquisition plan. Get in touch with Evan today for all of your Fund needs! You can also connect with Evan via his LinkedIn page or follow him on Twitter.

Evan Vitale – Alternative Small Business Lending Thriving

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By Evan Vitale

According to Business Insider, Bizfi recently announced the close of a $65 million funding round to ease the alternative lending process for small businesses by providing an aggregating plaform that helps small businesses find the best lending platform for their needs.

Bizfi facilitates some loans, but it also works with alternative lenders such as OnDeck, Funding Circle and Kabbage to pair borrowers with investors.

Some say this indicates alternative business lending is thriving. Unfortunately, most small businesses’ credit needs are not met by traditional lenders. In fact, during the first half of 2014, over half of the small businesses that applied for loans from traditional banks had their applications rejected.

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Evan Vitale is a multifaceted finance and accounting professional who provides Audit, Accounting, Tax, Due Diligence and Advisory services to Venture Capital Funds, Hedge Funds, Private Equity Funds, Family Offices, Small Business Investment Companies (SBICs), Funds of Funds, Other Investment Groups and their management companies. 

Today’s market has made it extremely difficult to predict what the next day will bring.  For Funds and Other Investment Vehicles, the expectations remain to balance the different opportunities with a continued focus on value creation in existing portfolios.  The key to any successful organization is building and maintaining the trust of your investors. Evan has the expertise to help you shine in your investor’s eyes and stand apart from the competition.

Funds have special needs when it comes to finding an accounting firm to help them with their accounting, auditing, tax and financial due diligence projects. Managing a fund is complicated enough without having to build the infrastructure to have accounting and tax services handled also. Evan helps Funds stand apart from their competition by exceeding their investor’s expectations with high quality and timely financial and tax reporting.

Connect and follow Evan Vitale on his Google+ page here: https://plus.google.com/+EvanVitale1/

Evan Vitale – Why Banks Reject Your Loan Request

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By Evan Vitale

Securing a bank loan for your business can be a difficult chore and, unfortunately, it’s like you almost know you’re going to get rejected the minute you walk in the door.

Don’t feel bad. Most small businesses can’t get a traditional loan from a traditional lending institution.

However, the answer to your bank loan request is always going to be “no” until you ask.

If rejection comes, dust yourself off and ask the bank for feedback on why your loan application was rejected. Usually, they will be forthcoming on the reason(s) for rejection and you can use this information to improve your chances the next time you approach your bank.

However, there are many reasons why your loan request was rejected. Here are some of them:

  • For a start-up business, the business idea wasn’t credible and too risky for the lender.
  • For an established business, applying for business expansion sometimes raises concerns that you will not be able to handle the extra strain on your business debts (even if you are turning a profit). This usually means you didn’t do a good job of presenting a plan on how you were going to be able to afford to pay back the loan.
  • Not enough collateral if things go bad.
  • Lack of personal commitment by you. In other words, how much of your own money have you invested into your business. Sweat equity doesn’t work.
  • Lack of a credible business plan and financial projections.
  • Not understanding a “good” loan purpose. The purpose of the loan request should be very specific and not general.
  • Not being able to talk the talk. You should be confident in asking for the loan and in your ability to pay it back. If you’re unsure, then the bank is going to be unsure as well.

Get your ducks in a row before you present your loan request to the bank. And, as always, you’ll be able to gain great advice by talking to your accountant, lawyer and, yes, even with your banker before you apply for a business loan.

Evan Vitale – Setting Business Resolutions for 2016

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By Evan Vitale

Every New Year’s Eve, people set personal resolutions for the upcoming year. They resolve to go on a diet; drink less; stop smoking; get a new job, etc.

But what about your business? Can you establish some New Year resolutions for your company?

Here are some business resolutions you can implement in 2016:

  • Appreciate your customers. When is the last time you “thanked” your customers for their business? Get into a better habit of sending thank you notes; call your customers and tell them how much you appreciate them. Let them know how awesome they are!
  • Invest more in your staff. This doesn’t necessarily mean a salary raise or additional bonuses, but there are other things you can do to help your employees grow which, in turn, will help your business. Consider additional training; allow them to attend local and regional conferences; give them additional responsibilities and roles (with less micro-managing).
  • Re-evaluate your company and its core competencies. Why do you have a loyal customer base and a great talent workforce? Identify what’s important and secure your company’s foundation for the upcoming year.
  • Growth. What is your ideal business growth for the upcoming year? Set some goals and break them down into smaller, achievable chunks.

Prepare and plan now for 2016. Stick to your resolutions and invest in your customers/clients and your employees. Reinforce your company’s core values. Approach the new year with a “look out, here we come!” attitude.

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You can read another blog by Evan Vitale at http://evanvitale.com

 

Evan Vitale – Year-End Bonuses?

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By Evan Vitale

Remember the scene in “Christmas Vacation” when Chevy Chase was waiting for his holiday bonus and his plans for purchasing an in-ground swimming pool?

Welcome to the “Jelly of the Month” club Chevy. It’s probably more than others receive each year during the holidays.

Surprisingly, a high number of employees still feel they are entitled to a year-end bonus and make “Chevy Chase” plans by spending money in advance.

In fact, 78% of all employees – even today – expect the year-end bonus and are later disappointed when it never arrives.

Unless it’s written in the employee contract or handbook, you shouldn’t count on receiving a holiday bonus.

A friend told me once that his company would hand out bonuses mid-December. However, mid-year the company was purchased by another firm. My friend didn’t lose his job, but the annual holiday bonus event never happened again. Employees were crushed when they learned the rules were changed and bonus structures were cancelled. Even a few started looking for new jobs after the holidays.

In times of slow economic growth, companies continue to struggle to keep their doors open let alone offer holiday bonuses.

Since bonus expectations might be running high, companies should clearly communicate their bonus plans (or lack thereof) well ahead of the end of the year so employees know whether than can expect a bonus or not.

Evan Vitale – No Office Party!

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By Evan Vitale

A recent study conducted asked employees what they would rather do (or have) than the traditional – and sometimes dreaded – holiday office party.

Guess what?

Over 90% of all office employees surveyed said they didn’t want to have an office party. Instead, they would prefer a bonus, a gift, or even an extra day off around the holidays.

Many companies have cut back on the extra expense of the traditional office holiday party. However, cut backs are cut backs and they usually don’t mean that instead of an office party, employees are going to receive a bonus or extra days off work.

One my clients offered a few suggestions on how they handled the office party event.

During the first few years of being in business (a startup), the holiday office party included a pitch-in lunch and a simple gift exchange. After lunch, the owner allowed them to have the rest of the day off work (a Friday afternoon), so they could finish holiday shopping, etc.

As the company grew, my client had the holiday lunch catered, but money spent on the gift exchange was collected and given to the local food bank.

Some employees, depending on their age and work-place traditions enjoy the holiday season and, with it, still enjoy having a party with office staff, family and friends.

What do you think of the office holiday party?

Evan Vitale – Office Party Etiquette

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By Evan Vitale

Oh, it’s time for those dreaded holiday office parties (well, sometimes, they can be fun). However, if you don’t want to be the subject of many jokes and events remembered in the “tales of holiday parties of the past,” then follow these simple rules when it comes to holiday parties.

You should:

  • Attend the office party. Even if you don’t like your job or your boss, it creates a lot of goodwill when you attend.
  • Wear appropriate attire. Dress appropriately, professionally and follow the suggested dress code.
  • Be polite.

Remember, even though it’s an office party, you are still a representative of the company. Don’t embarrass yourself, your boss or the firm.

Do not:

  • Wear any revealing clothes, introduce a wild hair style or wear too much make-up.
  • Drink too much. Too much alcohol at the office party can typically lead to trouble. Years ago, a client recalls an event in which a staff member started doing a strip-tease after too much liquid cheer. It is still talked about today.
  • Sit in the corner. Socialize. Have fun. Meet new people!

Basically, during the office holiday party you should be on your best behavior, maintain your dignity and have a good time!