I've also written about small businesses that I work with and comment on them here on this blog for several reasons: The first one is to have a current, ongoing conversation with my readers, clients and (hopefully) future clients about what's going on in the small business community and the second is, I simply like doing it.
Small business owners are the "canary in the coal mine" for the overall economy since they employ the vast majority of workers and also pay the most in taxes. The recent approval of the governments's plan to hire 87,000 new IRS agents is a frontal assault on small business and business owners; anyone who actually believes they're going after the rich or that it takes 87K (additional!) agents to audit 800 billionaires is delusional.
“There is no doubt that boosting IRS audit capabilities through a vast increase in the hiring of 87,000 new staff focused on this effort will hit small businesses the hardest,” said Karen Kerrigan, president and CEO of the Small Business and Entrepreneurship Council."
It seems the roughly 30 million small businesses are the actual target here:
“It would be mainly America’s 30 million small businesses,” Chris Edwards of the CATO institute said.
According to the IRS, it had 78,661 full-time equivalent employees in fiscal year 2021, meaning the new hiring spree will more than double its staff."
The larger companies don't need to worry, they already have teams of accountants and lawyers to deal with rookie IRS agents eager to "earn their stripes". It's truckers, Dentists, software sales, equipment dealers and retail stores who are "soft" targets that will bear the brunt of this new normal.
This is a time when both challenges and opportunities will require immediate capital on-demand. The best way to access unsecured cash in any meaningful amounts are revenue factors which don't require collateral, don't mess with your existing debt profile and they fund in 48 hours- even amounts above $500K
For now, rates are stable to lower and, although business sentiment is down there are many business owners making significant investments in their future growth. Many are hiring good accountants and bookkeepers now too for obvious reasons.