Small Retail Business May See Declining Sales
With roughly half of all Americans working at firms with less than 100 employees, the performance of small business in America is critically important to the U.S. economy. According to recent information from Sageworks, Inc. a North Carolina company that specializes in tracking private company performance, small retail businesses are not doing well this year. In fact, their data shows that the smaller the business, the smaller their revenue gains have been this year.
When looking at private retail businesses with annual sales over $10 million, Sageworks shows an 11.2 percent growth in year to date sales. However, smaller retail businesses with less than $1 million in annual sales are actually experiencing a 2.6 percent decline in sales during the same period.
Translation? Local mom and pop shops are not doing as well as larger stores and chains. Consequently, these smaller operations haven't hired as much this holiday season, focusing instead on minimizing operating costs and trying to bring themselves into the black for the year.
One issue is that foot traffic is down for all retail operations. The American consumer is choosing to do their shopping online with their PC’s, smartphones and tablets. While this hasn’t damaged larger retail stores, the smaller operations simply don’t have the capital to invest in online marketing and websites with downloadable apps.
However, a vehicle like the Sunovis Short-Term Micro Loan could help small businesses set up and enable online operations.
With small businesses creating nearly half of all private sector jobs, the October ADP jobs report said 50,000 of 158,000 non-farm jobs were created by firms with less than 50 employees, economic growth is dependent on these small businesses.
One solution is for small businesses to work on increasing their online and offline visibility. “Any way they can increase visibility is going to help them,” said Bierman. “There are a lot of options available to them, like Google Adwords, where they can introduce a profile to drive traffic locally to these companies.”
The AMEX Small Business Saturday is one good example of how social media can help small business in America. According to the National Federation of Independent Business, Small Business Saturday shopping in 2012 was $5.5 billion, in part due to the added consumer awareness from the national campaign promoting local businesses.
The Sunovis Short-Term Business Loan for small businesses could provide the capital needed to add an online presence and boost profits.
About Sunovis Financial
Every small business is important to local communities and even more important in rebuilding the American economy. Today more than ever, small businesses need capital and assistance to thrive, and that is what Sunovisis focused on. Sunovis specializes in SBA loans and Short-Term Micro Loans for small businesses.
Edited by Kristin Craik
Six issues at the top of tax and finance leaders’ agenda
New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.
According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.
And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.
Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.
Trend 1: Businesses seek more strategic counsel from tax
Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.
According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”
Trend 2: Tipping point for resourcing models
Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.
Trend 3: Digital tax administration is moving faster than expected
in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.
"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."
Trend 4: Data simplification and lower-cost resourcing are top priorities
Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.
At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”
Trend 5: Skillsets are shifting
Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.
Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact
Trend 6: 2020 brought productivity improvements
Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.