Header Right

7 Smart Ways to Improve Your Business Credit Score

by

A Memo stick with How to improve your credit score inscription on the calculator.Your business credit score is more than just a number—it’s a key that can unlock better financing options, lower insurance premiums, and stronger supplier relationships. Whether you’re just starting out or looking to expand, a healthy business credit profile can give your company a significant advantage.

If your score isn’t quite where you want it to be, don’t worry. Here are seven proven ways to improve your business credit score and set your company up for long-term success:

1. Establish Your Business Credit Profile
Before you can improve your score, you need to make sure it exists.

Action Steps:

  • Register your business as a legal entity (LLC, S-Corp, etc.).
  • Get an Employer Identification Number (EIN) from the IRS.
  • Open a business bank account in your company’s name.
  • Apply for a D-U-N-S Number from Dun & Bradstreet (a major business credit bureau).

These foundational steps help credit bureaus recognize your business as a separate, creditworthy entity.

2. Pay Your Bills On Time (or Early)
This is the single most important factor in your business credit score.

Why it matters: Late payments damage your score. On-time (or early) payments can improve it, especially with vendors that report to credit bureaus.

Tip: Set up automatic payments or calendar reminders to avoid missed due dates.

3. Work With Vendors That Report to Credit Bureaus
Not all vendors and suppliers report your payments. Make sure the ones you work with do.

What to do:

  • Ask suppliers if they report to bureaus like Dun & Bradstreet, Experian Business, or Equifax Business.
  • Try to establish trade credit lines (Net-30, Net-60 accounts) with these vendors.

Over time, positive payment history will help raise your score.

4. Monitor Your Business Credit Reports Regularly
Errors and outdated information can drag your score down.

Steps to take:

  • Request and review your business credit reports from Dun & Bradstreet, Experian, and Equifax.
  • Dispute any inaccuracies promptly.

Bonus: Monitoring your reports also protects you from fraud or identity theft.

5. Keep Your Credit Utilization Low
Just like with personal credit, maxing out your business lines can hurt your score.

Best practice: Aim to use less than 30% of your available credit. For example, if you have a $10,000 business credit line, try not to carry a balance higher than $3,000.

Tip: If your usage is high, ask for a credit line increase to improve your utilization ratio.

6. Avoid Frequent Credit Applications
Every time you apply for credit, it can trigger a “hard inquiry” on your report, which may lower your score.

Advice: Only apply for new business credit when necessary. Multiple applications in a short time may be seen as a sign of financial distress.

7. Build a Mix of Credit Accounts
Lenders like to see that your business can handle different types of credit responsibly.

Examples include:

  • Business credit cards
  • Lines of credit
  • Equipment financing
  • Vendor or supplier accounts

Having a variety of accounts, all in good standing, can strengthen your profile.

Final Thoughts
Improving your business credit score won’t happen overnight, but consistent, smart financial habits will pay off over time. Think of it as an investment in your company’s future—one that can open doors to funding, partnerships, and growth opportunities.

Start by checking your credit report, setting payment reminders, and working with vendors who report to the bureaus. Bit by bit, you’ll build a credit profile that reflects the true strength and potential of your business.

When Should You Sell an Investment?

by

Business closeup of two hands exchanging dollars on grey background.Selling an investment can be more difficult than buying one for many investors. When you buy an investment, you obviously have high hopes for how well that investment will perform. Unfortunately, it’s unlikely that every investment will meet your expectations. In that situation, holding on to your investment essentially means that you are not putting that money to its best use. Here’s a brief look at some of the signs that may indicate it is time to sell.

Changes in Investment Value

Experienced investors often establish a specific price target for an investment at the time they buy it. They also establish just how much of a decline from their purchase price they are willing to accept. If the security hits one of these two numbers, they sell. You may benefit from doing something similar. Decide on a percentage gain that you want from a particular investment and sell when it hits your target. Likewise, determine how much of a decline in the price of a security you are willing to accept and sell when the price falls to that target number.

An Investment’s Underperformance

You may opt to buy a specific investment because you have certain expectations for that investment. For example, you may buy stock in a company that you believe has a technology that is superior to anything currently available and has enormous potential for future profits. Or, you may buy a mutual fund* with a track record of strong long-term returns that you are optimistic will continue.** Short-term fluctuations in price are normal in investing. However, if you own stock in a company that loses money year after year or own shares of a mutual fund that consistently underperforms its benchmark index, selling may be the wiser option.

A Shift in Your Risk Tolerance

Your ability to handle the potential for losing some or all of your money in an investment is known as your risk tolerance and influences the types of investments you buy. You may find that, at some point, the risk level of an investment you own no longer matches your risk tolerance. It could also happen that your risk tolerance changes when, for example, you move closer to retirement. You may choose to sell an investment so that the asset allocation you have is more in line with your current situation.***

You Identify a Need to Rebalance Your Portfolio

Your investment portfolio may become unbalanced over time as some asset classes outperform other asset classes. When it gets to the point when one asset type comprises a larger or smaller percentage of your portfolio than you intended when first devising a suitable asset allocation, then you may consider selling some investments to rebalance your portfolio.

Determining when the time has come to sell an investment can be a tough decision. Emotions, fear of missing out, and other factors can cloud your judgement. That’s why the input of an experienced, objective financial professional can be so helpful in making investment decisions.

*You should consider the fund’s investment objectives, charges, expenses, and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost.

**Past performance does not guarantee future results.

***Asset allocation does not guarantee a profit or protect against loss.

Retirement Saving Tips While Running a Business

by

Senior man, insurance and contract with financial advisor and retirement plan to sign. Document, pension deal and business analyst with male person and paperwork in office for signature of willRunning a business is demanding, but saving for retirement is equally important. Here are some practical tips for entrepreneurs to balance both.

1. Set up a Retirement Plan Early

Consider retirement plans like a SEP IRA, SIMPLE IRA, or Solo 401(k)** to benefit from tax deductions and higher contribution limits. Choose a plan that fits your business size and cash flow.

2. Automate Contributions

Automate your retirement contributions to ensure consistent saving, even when cash flow is tight. Starting small and increasing contributions over time is a great way to stay disciplined.

3. Diversify Your Investments

Don’t rely solely on your business for retirement. Invest in stocks, real estate, or other assets to reduce risk and build multiple income streams for retirement.

4. Prioritize Personal Savings

Set aside some profits for personal savings, including an emergency fund and a taxable brokerage account, to avoid dipping into your retirement fund during business downturns.

5. Plan for Business Succession

Develop a business succession or exit plan early. Whether selling, passing it to family, or appointing a successor, planning will help ensure your retirement is well-funded.

6. Maximize Tax Benefits

Take advantage of tax benefits like deductions on retirement contributions and catch-up contributions if you’re over 50.

7. Consult a Financial Advisor

Work with an advisor to optimize your savings, minimize taxes, and plan for long-term financial security.

Balancing business operations with retirement planning is possible. By setting up the right plan, automating savings, and diversifying your investments, you can secure both your business and your retirement. Start early and stay consistent for the best results.

Understanding the Estate and Gift Tax Exemption

by

Close Up of a House Sold Sign on a Lawn in Front of a Big Modern House with Traditional Architecture. Housing Market Concept with Residential Property in the Countryside.

The estate and gift tax exemption is a crucial aspect of tax planning for individuals looking to transfer wealth while minimizing tax liabilities. This exemption allows individuals to transfer a certain amount of assets either during their lifetime or upon their death without incurring federal estate or gift taxes.

Understanding the Estate and Gift Tax Exemption

The estate and gift tax exemption is set by the federal government and adjusted periodically for inflation. It represents the total amount an individual can transfer without being subject to federal estate or gift taxes. If the total value of gifts and estate transfers exceeds this threshold, the excess is subject to tax at the prevailing rate.

Current Exemption Limits

As of recent tax years, the exemption limits have been historically high, allowing individuals and married couples to shield substantial wealth from taxation. For instance:

  • 2023 Exemption: $12.92 million per individual ($25.84 million for married couples)
  • 2024 Adjustments: Expected to increase with inflation

These exemptions are set to sunset after 2025, potentially reducing the exemption limit unless Congress takes action to extend or modify the provisions.

Gift Tax Annual Exclusion

In addition to the lifetime exemption, individuals can take advantage of the annual gift tax exclusion. This allows taxpayers to give a certain amount per recipient each year without affecting their lifetime exemption. For 2023, this exclusion is set at $17,000 per recipient.

Planning Strategies

  • Utilize Annual Gifting – Leveraging the annual gift tax exclusion can help reduce taxable estates over time.
  • Establish Trusts – Irrevocable trusts can provide tax benefits while protecting assets for future generations.
  • Consider Charitable Giving – Charitable contributions can reduce taxable estates and provide philanthropic benefits.
  • Monitor Legislative Changes – Since exemption limits are subject to legislative revisions, staying informed about potential changes is critical for effective planning.

Conclusion

The estate and gift tax exemption provides significant opportunities for wealth transfer planning. Understanding current limits and employing strategic gifting techniques can help individuals and families minimize tax liabilities while ensuring a smooth transfer of assets. Consulting with tax and estate planning professionals is advisable to navigate complex tax regulations and maximize benefits.

5 Often-Overlooked Tax Credits for Your Small Business

by

Notebook with tax credit sign on a table. Business concept.As a small business owner, tax time can be stressful. That’s why ensuring you’re garnering every benefit possible is essential. Many small businesses overlook some huge benefits when it comes to tax credits. This article reveals five of the most overlooked tax credits for small businesses. Read on to determine if any of these apply to your business.

Tax Credit vs. Tax Deduction

Before jumping to five tax credits often overlooked by small businesses, let’s clarify the difference between a tax credit and a tax deduction.

While tax deductions reduce your taxable income resulting in you paying a lower tax amount, tax credits are a dollar amount deducted from the taxes you owe. So, if you receive a tax credit of $500, you subtract $500 from taxes due.

Tax credits can be highly beneficial come tax time, so knowing which ones your small business is eligible to claim is good. Unfortunately, there are quite a few that many business owners aren’t aware of.

Here are five tax credits that are the most overlooked by small businesses. After you review the list, check with your accountant to see if your business is eligible for these or other tax credits to reduce the amount you owe to the IRS.

5 Tax Credits You May be Overlooking

1. Retirement Saver’s Credit

For small businesses that start a retirement plan for their employees, the IRS offers this credit to offset some of the startup costs they consider “ordinary and necessary.” Your business must employ fewer than 100 employees and not have had a retirement plan previously. The credit is for 50 percent of your startup costs, with a maximum credit of $500.

This tax credit can be claimed for three years, beginning the year before your plan becomes effective. If you do not currently offer a retirement savings plan for your employees, now may be the time to establish one.

2. Research & Development Tax Credit

The R&D tax credit is one of the most overlooked because small business owners not in a “research” field with a laboratory setting often blaze right past this one. But according to the IRS, “research” isn’t necessarily in a lab.

To qualify for this tax credit, a business must improve a product or process, often occurring in many companies as part of their everyday operations. For example, you may qualify if you own a software company and develop or improve an IT process.

Developing, designing, enhancing, or improving a product or process related to your business can qualify you for a credit of 13 cents on every dollar. Of course, you’ll want to confirm whether your business qualifies, identify qualifying activities, and keep copious records so that you can back up your claim to the credit.

3. Rehabilitation Credit (Historic Preservation)

If your business spent money to rehabilitate or renovate a historic structure, this credit likely applies to you. A 20 percent tax credit is available for rehabilitating historic, income-producing buildings determined by the Secretary of the Interior to be “certified historic structures.”

This does not apply to residential structures; however, many businesses purchase historic properties to house their office, restaurant, or other business. Historic structures are certified by the National Park Service, which reports to the IRS. If that applies to the structure where your business is housed, it is worth reviewing this credit with your accountant.

4. Empowerment Zone Employment Credit

Empowerment Zones (EZ) are distressed urban and rural areas needing revitalization. The purpose of the EZ credit is to encourage business owners to operate in these areas and employ EZ residents.

The credit is 20 percent of qualified wages paid during a calendar year. Businesses are eligible for a wage credit of up to $3,000 annually for each eligible employee.

5. Plug-In Electric Vehicle Credit

Suppose you purchase a new plug-in electric vehicle (EV) for your business between 2023 and 2032. In that case, you may qualify for a tax credit of $7,500. To be eligible for the credit, your adjusted gross income (AGI) must not exceed $150,000 in the year you take delivery of the vehicle or the year before (whichever is less).

The EV must meet qualifications regarding battery capacity, retail price, and weight. Speak to your tax accountant for the guidelines and qualifications if you purchased a plug-in EV for your business.

Ensuring you claim every tax credit your small business is entitled to is the key to paying the lowest tax possible. There are dozens of tax credits that small businesses are eligible for. Be sure to have your accountant or CPA review your eligibility for maximum savings come tax time.Notebook with tax credit sign on a table. Business concept.

How to Set Up a Bookkeeping Cycle in QuickBooks Online

by

Young female financier with calculator working inside office at workplace, businesswoman behind paper work satisfied smiling, good achievement results, working with contract, accounts and charts.Do you have a regular schedule you follow with your QuickBooks Online work? It can be a good strategy.

Bookkeeping is cyclical. You tend to do the same things over and over, which may get to be a bit of a drag for you. QuickBooks Online can automate some processes, and it certainly helps minimize duplicate data entry, but you’ll undoubtedly find yourself growing weary of repetitive tasks.

We can’t help you avoid this drudgery completely, but we’d like to suggest a new, more organized way to attack your accounting tasks in 2025. It could be especially helpful if you’re a new QuickBooks Online user and don’t have a routine established yet. But even long-time users might find this routine helpful. It can keep things from slipping through the cracks and simply make you more productive and confident that you’re addressing all of your accounting issues.

Give it a try and see what you think.

What Should You Do Every Day?

Even if you don’t have expenses to enter or invoices to process, it’s a good idea to log into QuickBooks Online every day. If you’ve connected your online bank and credit cards to the site (which you absolutely should), there will probably be transactions to go over. So after you’ve taken a look at your Dashboard (especially your Tasks), hover your mouse over Transactions in the toolbar and click Bank transactions.

Click Update in the upper right to make sure you’re seeing the most recent transactions. If you’re doing this every day, it shouldn’t take long to go over the income and expenses that have been imported since you last logged in.

You should be looking at newly imported transactions daily and completing the fields provided as comprehensively as possible.

If you don’t know what Match or Record as transfer mean, we should schedule a session to go over transaction management in QuickBooks Online.

Every Week

You need to be monitoring your accounts receivable and payables on a weekly basis – at minimum. There are two ways to do this. You can:

Run reports.

• Click Reports in the toolbar and scroll down first to Who owes you. Run Accounts receivable aging summary. QuickBooks will display past-due transactions in several columns (Current, 1-30 days, 31-60 days, 61-90 days, and 91 and over). If you’re keeping up with your receivables, you shouldn’t be seeing numbers in most of the columns, unless you’re in a known collections process.

• Scroll down to What you owe and run Accounts payable aging summary. This works like the aging receivables report. Again, you shouldn’t be seeing much activity here unless you’re in a payment dispute with a vendor.

• You can also run the Open Invoices report to quickly see the Due date and Open balance entries here. Ditto the Unpaid Bills report.

Consult the All sales page.

Hover your mouse over Sales in the toolbar and click All sales. The colored bars and numbers at the top of the page show you the status of your sales. Click the orange bar in the middle to see a list of overdue invoices. If there are any, you can set a Send reminder by clicking the corresponding down arrow in the Action column. While you’re there, look at estimates and unbilled income and take any action needed.

Every Two Weeks (or more often, depending on product volume)

If you sell products and track inventory in QuickBooks Online, you should keep a close eye on your stock to see if you need to:

• Reorder,

• Bring in a larger supply because something is selling well, or,

• Discount or discontinue a product because it’s not selling.

Click Reports in the toolbar and run Product/Service List under Sales and customers and look at the Quantity on hand column.

Every Month

Reconcile your accounts (Transactions | Reconcile).

It’s really, really important that you reconcile your accounts every month. We can help you with this.

No one likes to do this, but it’s way easier to do regular reconciliations than it is to have to go back several months to track down a problem. If you’ve never done this in QuickBooks Online, it works similarly to how you used to reconcile your accounts by comparing a bank statement and your paper checkbook register. Only you’re comparing your bank or credit card statements to your accounts in QuickBooks Online. Before you start, make sure you’ve matched and categorized all of your downloaded transactions.

Run a Profit and Loss report for the last month.

Click Reports in the toolbar and click Profit and Loss under Business overview. Did you make a profit last month?

Every Quarter

If you’re planning to apply for a loan or looking for an investor, or if you just want a deeper understanding of how your business is doing, consider having us create and analyze standard financial reports for you, like the Balance Sheet and Statement of Cash Flows. You can run these yourself in QuickBooks Online, but it really takes an accountant’s eye to understand and interpret them.

If you decide that you want to work with us in any capacity, like helping you with reconciliation and/or modifying your Chart of Accounts, there’s another way we can help. If you ever have trouble categorizing an expense, select Uncategorized Expenses as the Category. If we’re meeting with you once a month, we can run a report on these and help you categorize them correctly.