Category Archives: Credit Card Processing

Three S’s

What makes CapRock different from other alternative funding companies? The three S’s set us apart!  Take advantage of our new SNAP pre-qualification process just introduced for 2014 and see why you will want to turn to CapRock Services for all of your future Growth Capital needs. At CapRock Services, “Your Passion, Our Support” will drive the customer experience!

SNAP! As quick as snapping your fingers…Our Swift New Application Process allows for fast and easy offers within hours.

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SPEED – a new streamlined pre-qualification form and process requiring less supporting documents mean conditional offers in 24 hours or, often, less!  This new pre-qualification form can be requested by emailing concierge@caprockservices.com. You can start using it right away!

SERVICE  – The Office of the Concierge gives you unparalleled, boutique style service!  Your personal Concierge is always available for questions, status updates, and service help of any kind. No automated system here – you will always get a friendly, helpful Concierge to personally assist you with any issue.

SIZE  — We are the best source for funding larger than most in the industry can or will advance.  We tailor each deal to the best interest of your merchant with boutique style underwriting. One size advance does not fit all merchants – we understand that certain industries, such as restaurants, hotels, and auto dealers have unique needs for larger advances. We underwrite each submission upon the unique aspects of that merchant

5 Tax Tips For Small Business Owners

When it comes to taxes, very few people are excited about paying them. From the rates, to the paperwork to the time and hassle, it is simply not something most of us like to deal with. For the small business owner the issues are multiplied. In addition to personal income tax, a business owner is faced with filing and paying income taxes, sales taxes, and payroll taxes for the business.

Unfortunately, failure to properly manage taxes has been a downfall for too many small business owners. From failing to file all necessary returns, failure to file returns properly, and failure to make prompt payments, many business owners find themselves in positions which put not only their business’s financial health, but also their personal financial health at risk. And while we all know taxes are unavoidable, too many business owners procrastinate and delay addressing problems while still manageable. They wait too long and the situation becomes dire.

But there are many things business owners can do to make it easier to manage their taxes.

1)      Utilize a payroll service

Most small business owners didn’t go in to business hoping for an opportunity to do accounting, let alone payroll accounting. Additionally, withholding taxes is one area in which the law will allow the Internal Revenue Service to pierce the corporate veil and pursue the business owner for any unpaid liabilities. A qualified payroll service will not only free up the business owner to spend time on their core business, they will ensure that returns are filed promptly and payments made when due. Because the payroll service will take the necessary taxes when taking the funds to pay employees, the business owner knows the funds have been set aside without having to do so themselves. In the event of an error, a qualified payroll service is responsible for correcting the issues with the agency involved.

2)      Escrow your tax payments

One of the simplest things a business can do to ensure tax compliance is to escrow funds for payment. By simply setting up bank accounts outside the main operating accounts to hold the funds, a disciplined business owner can avoid coming up short when it is time to make a deposit. One strategy is to escrow payroll taxes as employees are paid and to escrow sales and liquor taxes on a weekly basis. By segregating the funds a business owner can better manage their day to day cash flow while also preparing for future obligations.

3)      File returns promptly

Many times when a business owner is concerned they will not be able to pay taxes due they simply fail to file the return. This only makes a bad situation worse. By failing to file not only will the unpaid taxes accrue interest, but also penalties will be added to the balance. The amount that is eventually paid will be much larger, and this larger balance can increase the priority level at the agency.

4)      Don’t ignore tax notices

When your business receives a notice from any taxing agency it is important to deal with the situation promptly. A business owner who is working with the agency to resolve an issue is more likely to reach an amicable solution than one who fails to open a dialog. By nipping the problem in the bud it may be possible to avoid liens and levies, as well as to implement a payment plan that is achievable.  On the contrary, ignoring the notices may increase the likelihood of more aggressive actions and necessitate a plan with large, hard to make payments.

5)      Get help

Regardless of the situation, when the problems escalate it is best to have someone with experience to help you work through them. Ideally, it is best to use an individual or firm that specializes in resolving tax issues. While it may be tempting to go it alone or stick with your accountant, there is value in working with someone who deals with the agencies, the legal issues, and the necessary documentation on a daily basis. Tax resolution is a very specialized area, and just as one wouldn’t want a General Practitioner to perform open heart surgery, it may be best to utilize an expert to help you evaluate the issues and come to a resolution.

Taxes can be one of the least enjoyable aspects of being a small business owner, but managing taxes properly is a key to running a successful and healthy business. Whether you are paying sales and use tax, liquor tax, withholding taxes, or income taxes, failure to manage the process and payments can ruin any small business, and often results in serious consequences for the business owner. Utilizing these 5 tactics can assist you in keeping your business healthy, and reducing your tax related stress.

Daily Deals, Too Good To Be True?

Daily Deal sites offer merchants quick access to cash with the potential to attract new customers. On the surface the offer seems too good to turn down, as combining marketing with convenient working capital is an ideal situation for the typical small business. Unfortunately, many find that the end result is less than ideal.

A typical Daily Deal offer is fairly straight forward. A merchant agrees the site selling number of coupons which provide a deep discount, 50% or more, for goods and services. Usually the deal site will keep one half of the proceeds from the sales with the merchant receiving the other half.

Negative Profit Margin
As many businesses find it very difficult to absorb the costs of doing this type of promotion. If your product or service does not have a large profit margin, you can find that each of these transactions comes at a significant loss. If there are no additional sales made to the customer, it is hard to justify the deep discount, as the business is unable to recoup the loss from the deeply discounted coupon. The simplest solution to overcome these cash shortfalls is often engaging in another Daily Deal offering, continuing the cycle.

Low Customer Retention
The goal of doing a daily deal coupon is to influence first time customers to try the business’ product or service. Many businesses also do not see the repeat business they anticipated, as a large portion of the Daily Deal customer base simply moves from discount to discount, rarely returning without another coupon. Many small businesses note there is an uptick in business when the coupon is first issued and another when the coupon nears expiration. Otherwise, volume remains consistent.

Loss of Value
Existing customers are put off to find that other customers are paying significantly less, and are less likely to continue to feel paying the established price is a good value. While Daily Deal site users tend to drive activity and increase discussion of a business, a recent study found that they are more likely to leave a public review, and on average, will rate a business 10% lower than a traditional customer. As a result, many businesses see their rating scores on sites like Yelp! drop noticeably.

Decrease Product or Service Quality
Businesses have found that more coupons are sold than they can realistically manage. Unless the deal is properly structured, businesses have often found that the number of sales exceeds their capacity. In one instance a flight school had to end sales on a deal early because 2,600 lessons had been sold and their capacity for all lessons over the prescribed time frame was only 2,000. Another merchant found themselves forced to bake 102,000 cupcakes, at a loss of $3 per dozen, as a result of a “successful” offering.

Employee Dissatisfaction
In service industries, there can also be increase in job dissatisfaction among employees, particularly those whose income relies on tips. Customers will frequently base tips not on what the cost of the food would have been without the discount, but on what they actually paid. In many cases, customers used only the value of the coupon with, ordering no extra additions, and left no tips. If they did, they were well below what is appropriate for the service provided. In essence, employees find themselves also forced to offer their labor at a discount.

The important thing for merchants to consider before accepting an offer from a Daily Deal site is to view the whole picture and determine if it fits with the image, business model, and financial reality of the business. If the sales are going to come at a loss, the question becomes, can the business absorb that loss? Do the benefits outweigh the cost? While the information and analysis provided by the site may be impressive, a merchant is strongly advised to do their own research, in regards particularly to how similar businesses have fared. While there is a place for these kinds of offerings, they are not something to be taken lightly.