How Subscription Businesses are Gearing Up for the Holidays

November 18, 2021

Subscription businesses use a business model allowing consumers to pay a set price each month for the right to gain access to services or products. In 2020, online shopping increased enormously during the holiday season. There was an increased demand for online subscriptions for the first time compared to prior years.

Industry experts are trying to predict the fate of subscription sales after Covid-19 restrictions get lifted. Will there be an impact on sales strategies in 2021? It is difficult to predict how sales in the subscription business will be affected this holiday season.

If companies didn’t start preparing for the holidays earlier this year, it’s time to develop realistic mindsets about the expectations of the holiday coming up. The central focus should now be on the sales channelizing strategy. Whether the subscription market declines or sustains this year depends on several factors as a guide.

Viewpoints about 2021 Holiday Season

One thing to know about this holiday season compared to previous ones is that it’s unlikely sales this year in online shopping will be the same as they were in 2020. One significant factor to consider is people are anxious about getting out of their houses to shop with family and friends. While last year’s subscription sales were enormous and remarkably successful, online shopping will be more common this year in comparison to 2019. Therefore, businesses need to gear up for two scenarios, a declining or sustainable subscription market.

Online subscription companies received a positive benefit when Covid-19 led to new trends in the online shopping arena. Business owners should direct their focus on their sales channelized strategy as guidance to capitalize on the latest trends. It may be helpful to give innovative gifts that might influence sales by attracting new and former customers.

Some e-commerce experts predict no slowing down in subscription sales by the end of the year. From 2020 to July 2021, subscription box fulfillment services expanded and will likely continuously grow in the coming years. Overall, sales will likely increase from 2019, but businesses need to prepare for a reduced sales success than last year. When developing a sales channelized strategy, remember that reliable holiday fulfillment is essential for retaining customers.

Recommendations for a Strong Sales Channelized Strategy

Contact previous customers regularly to measure their interests in becoming a subscriber again. They are an indispensable part of the sales channelized strategy. Sales channeling includes marketing strategies for existing and former customers.
Start communicating with logistics partners to avoid shipping delays. Last year, customers received their products weeks after the Christmas holiday, which disappointed millions of families. Now is a good time to see if shipping companies are prepared for the 2021 holiday season. A valuable tip for businesses is to move up the cutoff date to purchase and receive gifts to help shipping partners meet shipment timelines.
Ensure customer service is an essential feature of the sales channelized strategy. This department must be proficient and prepared for the holidays. Make sure agents in customer service are trained adequately to handle high-volume calls. It will help processes run more smoothly for each customer.
Include new customers in the sales channelized strategy and use marketing strategies such as gift drives to attract consumers. Have marketing professionals reach millennials with optimized messaging and curated content. Millennials are more likely to use subscription services and products for convenience, personalization, and customization.
Boost sales channelized strategy for gift customers and the recipients of gifts. Subscribers often purchase subscriptions for other people who have no experience with the businesses. To attract both the buyers and gift recipients, optimize the strategy to ensure both parties experience are impressive. Offer the buyers incentives such as a one-month free bonus for every purchase on their subscriptions.

The most important thing to remember about gearing up for the 2021 season is having a mindset that reliable holiday fulfillment is essential. Subscription businesses must prepare ahead of time by communicating with their logistics partners, creating referral programs, and strengthening customer service. Educate both the subscription holders and the gift recipients on company values, customer service, and products or services.

Gain them as customers through exclusive offers and encourage gift subscribers to purchase items for themselves if they haven’t already. A strong sales channelized strategy will gear up businesses for all possible scenarios during the holiday season in 2021.

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6 Ways to Lower Expenses and Increase Revenue in the Process

November 18, 2021

How many times have you felt like your business is running in a hamster wheel? Are you working hard but not getting anywhere? If so, it’s time to take a step back and evaluate some of the ways that you can lower expenses while increasing revenue. In this article, we’ll go over six different tips for reducing costs while improving profitability.

1. Review your business plan

Many entrepreneurs fail to create a written, comprehensive business plan. They think that they can just do things by the seat of their pants, and it will all work out in the end – but without an overall game plan for how you’re going to get where you want to go, there’s no way that you’ll be able to put the pieces together to create a profitable business.

If you’re not familiar with creating a business plan, consider hiring an outside consultant or taking a course at your local college – it could be the best money you ever spent! Make sure that all of your expenses are accounted for in your written plan and review them regularly to be adjusted as needed.

If you’re trying to cut expenses and increase revenue, the first thing that you need to do is make sure that your business plan reflects those goals! That way, every decision you make – big or small – will improve profitability instead of detracting from it.

2. Review expenses

While you’re looking at your business plan, take the time to review every expense you have to determine whether or not it’s necessary. It may be helpful for you to create an Excel spreadsheet with all of your monthly and yearly costs so that everything is easily accessible – this will allow you to see how various changes to your expenses affect the bottom line.

If any expenses in your company budget aren’t necessary, the best way to reduce costs is by removing them entirely! This will allow you to spend more money on things like marketing and advertising – an area where many entrepreneurs fall short when they’re trying to decrease spending while increasing revenue.

3. Pooling Costs/Resources With Other Businesses

If you have a good relationship with a business owner who has a complementary product or service, consider working out a more formal arrangement where the two of you pool your resources together. For example, a shared mail system helps business owners save money on direct mail marketing. Direct mail campaigns are a fantastic way to reach a broad audience, but it can also be a very costly one – having a direct mail resource pool allows you to cut costs without sacrificing ROI. If you both agree that it would be a good partnership, talk to your accountant about the best way to structure a formal business arrangement so that each company can reap the benefits without being responsible for any tax issues or liabilities.

4. Consider Outsourcing Work

Another way to cut costs while increasing revenue is by outsourcing work. There are a lot of tasks that your business can either completely outsource or partially outsource to get the job done without having to hire additional employees – which means you’ll have more time and energy for other things! Some businesses even use VAs to handle marketing tasks like social media management or content creation – which can be a huge time saver.

5. Utilize Accounting Software

You must always keep your books in order – and an easy way to accomplish this is by utilizing accounting software! There are many options for accounting software – from the highly affordable (and highly functional) Wave Accounting software to more expensive ones like QuickBooks. The advantage of using accounting software is that it allows you to track expenses and income in real-time – which means you can see exactly where your business is making or losing money, so you know how much cutbacks need to be made!

6. Market Yourself

Another way to cut costs and increase revenue is by marketing yourself! Marketing your business can be a very costly venture, but many free options are available – from local events to social media. The more familiar people become with your company, the more likely they’ll be interested in working with you or purchasing goods from you. And if you’re having a hard time coming up with ideas on how to market your company, hire someone who knows what they’re doing!

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5 Tips for Managing Past-Due Accounts

November 18, 2021

Past-due accounts can be a big issue for businesses that pursue subscription or membership models. Customers can fall out of the habit of paying for your product as they transition from one stage of life to another, and those customers may not even realize they haven’t subscribed anymore. They might have missed an email from you reminding them that their credit card is about to expire.

We’ve got some tips for keeping your business’s past-due accounts in good standing and keeping your business rolling along.

1. Use Recurring Billing Software

You can’t manage what you don’t know, and that goes for more than just the logistics of running a business. If you don’t know when a customer’s credit card will expire, you can’t contact them in time to avoid an interruption in their service. You might also end up with a chargeback if they refuse to pay for an item already purchased.

Your business needs recurring billing software that allows you to create an account for your customer and know their payment information. You can set up notifications that will send you an email every time a credit card is about to expire, allowing you plenty of time to renew the subscription yourself or remind them to do it themselves. You can also see when one of your customers has changed their billing address or other account details so you can update your records accordingly.

2. Remind Customers to Update Their Payment Information

It’s not always reasonable to expect a customer to know when their payment information changes without being told. For instance, a customer could be working on debt consolidation through a service like Strategic Consulting and have yet to update their payment information. If you allow them to make the change themselves, they’ll be more likely to continue their subscription or membership rather than letting it lapse and simply forgetting about it.

Customer portal software provides a platform for customers to update their payment information themselves, reducing the number of past-due accounts you have on your hands. You can also use this feature to offer subscriptions or memberships with recurring billing, so customers don’t lose out on the benefits provided by these services even when they’re not actively paying for them.

3. Set a Deadline and a Notification Level

You can allow your customers to have some leeway with their payment plan, but there’s still going to be a point at which you need them to renew or risk losing access to the benefits of subscription services. It’s vital that you clearly communicate that deadline to your customers and then take action when they don’t meet it.

It’s usually best to send a gentle reminder when a customer is one month overdue in their payment plan. If you hear nothing from them after that point, you can set another notification for two weeks later. You should have the final say about how long you want to give your customer to renew, but being consistent with these notifications ensures that they know exactly what you expect them to do.

4. Segment Your Customers by Payment Plan

You’re probably going to have different levels of subscription plans for your customers, which means you must be able to distinguish between customers who are paid up and those who haven’t renewed. You can use customer portal software to allow your customers to update their passwords. This also separates them into groups based on the payment plan they signed up for in the first place, so you’ll know exactly when they need to renew or risk losing access.

5. Use an Automated Message to Remind Customers to Renew on Time

You may have a great relationship with your customers, but they aren’t going to read your mind and know when a payment is due. If you want them to renew their subscriptions so you can continue doing business together, it’s in both of your best interests for you to remind them when the time comes.

Customer portal software can automatically send your customers an email reminder about their payment plans no matter what time zone they’re in, which increases the chances that you’ll hear from them even if it’s late at night or early in the morning. You should also follow up with a phone call to offer personalized customer service to impress your subscribers and encourage them to continue their plans for another term.

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Three Little Known Facts About Personal Injury Claims

November 17, 2021

A personal injury claim is a legal action taken by a person who has been injured due to the actions or negligence of another person or company. These cases vary considerably, from minor to serious, and allow the affected party to recover compensation for injuries that were not their fault. From the various injuries you can claim compensation for, to contributory negligence, here are three little-known facts you should be aware of when it comes to personal injury claims.

Fact One: Different Types of Injury Claims

There are various forms of personal injury claims, with some of the different categories including:

Road Traffic Accidents

You may be entitled to compensation for any injuries or inconvenience caused, or damage to your car, whether you were the person driving, a passenger, or a pedestrian. Most car accident claims occur because the affected party has suffered an injury, such as whiplash. While every case is different, it is usually clear when a claim deserves compensation. This is especially true if you have suffered significant damage to yourself or your car in the accident.

Medical/Clinical Negligence

This occurs when you have been hurt due to negligent medical treatment. It can also happen if you are the next of kin of someone who has died because of negligence, or a person who cannot take legal action because they lack capacity. Some examples of clinical negligence include:

Medical condition not diagnosed or incorrectly identified.
Mistakes made during a procedure.
Consent not obtained before the start of treatment.

However, you can only receive compensation for the different types of injury claims if the treatment directly caused you harm, or the care was below medically acceptable standards.

Workplace Injuries

Most workplace accidents can be avoided or prevented, and employers have a duty to ensure that work premises and procedures are safe. The law requires employers to carry out regular health and safety checks and put measures in places like life safety consultants that limit or avoid potential risks to workers and visitors. If these obligations are neglected, then anyone on the premises could be in danger of a work-related injury. This applies to anyone who works on the site in any capacity, as well as members of the public visiting the establishment.

Fact Two: The Book of Quantum

The Personal Injuries Assessment Board launched in 2004 and created the Book of Quantum, which contains the level of compensation to be awarded for damages. This book was created by a group of independently recognised consultants who analysed data provided by courts, insurance companies, and self-insured sectors. Recently, however, the Book of Quantum has been replaced by new award guidelines for compensation amounts.

Fact Three: Contributory Negligence

This can happen if the person who caused the accident makes a claim and means that if you were at fault, then your compensation claim could be invalidated. One example of this could be a road traffic accident in which you were hit by a car because you failed to look when crossing the road. If the claimant and the defendant have both contributed to the damage, it could take much longer to prove who is to blame.

If you are suffering because of an accident that wasn’t your fault, it is important for you to receive compensation so that you can properly rest and heal from any pain or injuries. You should also hire a decent lawyer to ensure that the claims process goes as smoothly as possible, and that you secure the outcome you deserve.

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The Newcomer’s Guide to Finding the Right Talent Agent

November 17, 2021

Whether you want to appear in an advertisement, TV or movie, it’s only the right talent agent who can help you find and get some good work. At some point in life, every aspirant needs a talent agent who can help him get some genuine piece of work. These are the agents who help you get some roles in whatever category you are looking for due to the fact that they have some good contacts in the industry.

Though you can also get work without having a talent agent, but you will undoubtedly get access to various opportunities by having the right talent agent. A right talent agent or an agency can help you meet some high profile casting directors and studios who in turn can help you get roles provided you have a good portfolio and material.

In this context, you can prefer to get yourself registered with one of the most prominent agencies like hunter talent modeling agency that is always in search of talented models, creative actors, and influencers. Moreover, it will also help you to take your career to the next level. In this newcomer’s guide, I will help you find the right talent agent to get work and grow in a better way. Let us have a look:-

1. Search a few potential agents and agencies

The first and foremost way to find the right talent agent for you is to start by searching a few potential agents and agencies. Suppose you have some people in your contact, including acting classmates, teachers and relatives who are into the same business. In that case, you can ask them for recommendations about which agents to choose and which ones to avoid, and how to contact them, etc.

This will help you get a better knowledge about which ones to choose, which will ultimately help you select the best talent agent for you.

2. Research your candidates

You must have some relevant information about the agency that you are going to opt for. Know about how many agents are working for the agency, the agency’s location, how long it has been in business, their submission guidelines, and a few more. If you still wish to get more information about the agency, you can simply visit their website.

3. Narrow down your list

The status and size of the office you should approach is determined by how far you are in your career. In the beginning, you will also realize that small and medium-sized offices are more receptive when it comes to meeting new people and aspiring candidates. But if you have an ‘in’ at a major agency, don’t leave it behind.

4. Prepare and submit your talent and other materials

Now, when you have finally selected and got yourself enrolled in the right talent agency, what you need now is to prepare and submit a few relevant things, including your acting resume, headshots, demo reel, and agent cover letter etc. Avoid mailing to every agent you know; instead, select the best ones and share your talent with them only. Managers and talent agents will undoubtedly get back and call you if they are interested in your submissions.

5. Ask for referrals

This is yet another way to find the right talent agent for you. A few good referrals and contacts including your known teachers, or friends can help you get recommended to the willing agent. So, you can ask them if they would advise the talent agents to expect your genuine submissions and material.

6. Revamp and resubmit

Last but not least, this is also an important point that needs to be remembered. If you wish to achieve success and grow in this industry, you need to be careful and don’t forget to revamp yourself from time to time.

At any point, if you realize that you are not getting a good response after your second round of submission, shoot new photos, modify your resume, cover letter, and submit them again. This way, you may see a considerable change in the attitude of your talent agent and get you noticed in a better way than earlier.

To Conclude

With the help of the above guide, you can easily find the right talent agent for you. You just need to be careful so that you don’t get befooled by a fake agency and an agent.

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6 Warning Signs Your Loved One Needs Counselling

November 17, 2021

Did you know that this generation is called mental health generation, because so many people have faced, and are facing internal struggles, and struggling with issues like depression, stress, anxiety, and more?

But Is it that only people and kids of this generation are facing and have faced mental health struggles? Or, is it that people in this generation have been more open to it, and have come forward to accepting what they are growing? The latter makes sense, doesn’t it?

In reality, people, no matter the generation face mental health struggles. The good thing is that people now are coming forward to address the issue.

When we talk about someone struggling from mental health, most people aren’t ready to readily admit what they are going through. In such cases, you, as someone who cares for them, needs to pick up signs from their behavior that they might seek outside help, from experts.

Below, I’ve also compiled some more signs which reeks of expert help or counselling sessions for your loved one.

1. Negative behavior gets in their way of life

This is common among everyone who deals with bad mental state. Once you see your loved one struggling with issues like anxiety, stress and depression, negative thoughts and behavior get in the way of they daily life.

This can be noticed in their day-to-day behavior or even in actions. But while they keep on ignore, you don’t have to. Seek help before it’s too late.

2. They don’t talk

Some people are naturally introverts. But even the introverts, open up to their loved ones. However, this person will be struggling to communicate.

A common reason why most people stop communicating is because what they are going through is either too painful or embarrassing to share even with a loved one.

But the thing is, communication is the key for a healthier, and happier life. Communication builds connections. This is when a therapist, or counsellor steps in and helps the person unwind his/her thoughts and seeking guidance from professionals offering marriage counselling in Brisbane can provide valuable insights.

3. They feel stuck

I am not saying counselors should be your first resort. As family and loved ones, you must try first.

But when you are trying, if you are feeling stuck, and they still aren’t moving (emotionally) from where they were used to be, it is a good idea to call in for some backup. Counselling help you dig deep within yourself and sometimes also understand why you’re feeling a certain way.

4. You feel a drift in your relationship

Are you not that close as you used to be at a point of time? And is this drift and distance not because of betrayal, disappointment, or your partner letting you down in any way possible? It might be because you have certain expectations from your loved one and because of what they are going through right now is not allowing them to fulfill these expectations.

Working with a counsellor means that they will work out solutions of this miscommunication, and resolve unresolved barriers.

5. Something life changing has happened to them

Studying behavior patterns of your loved one can be quite tricky. You may want to take a peek into their recent past. Have they gone through something traumatic or life changing? Have they not been able to process and accept what happened? Life altering moments or experiences call for a counsellor.

6. They are going through a series of upsetting events

Although upsetting events is quite a broad term, here I mean influential events like divorce recovery, family blending, or parenting struggles. What most people fail to understand is that as humans one of the most basic needs of humans is to love, and to be loved unconditionally. That is why family is important.

If anything, wrong happens in your personal life, it may be a good thing to seek relief from a counsellor. Although in this age where remote work has become popular, I still recommend you to go for a walk-in therapy in your local area. You can search for keywords loke Counseling Services Australia, or wherever you belong, and you will soon find a list of the top counsellors you can visit.

Counseling is extremely underrated especially the benefits that you leverage after the sessions. It can actually help you in ways you cannot imagine. But the only way to know is, to walk in there.

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How Commercial Loan Brokers Can Help Grow Your Business

November 17, 2021

Being an entrepreneur requires commitment and hard work to realize your set business goals. However, this sometimes becomes a challenge due to reduced trade or the inability to cope with the increased customer demand. When your business is in such a position, your business will need additional cash to propel the growth.

But for most small and medium-sized businesses, financial constraint is a huge challenge that restricts business growth. This is further worsened because many business owners don’t know how to get the necessary funding to expand their businesses. This is exactly why you need to work with a commercial lending systems. With that said, let’s jump right ahead and see how a commercial loan broker can help propel business growth.

What’s A Commercial Loan Broker?

The commercial loan broker, also known as a business loan broker, specializes in linking startup entrepreneurs with lenders. They do this by helping you navigate the tricky financing options, which is possible thanks to their relationship with lenders and a better understanding of business financing. In addition, they provide you with useful advice to make a better decision on matters such as the loan terms, the deal structure, and different types of loans such as property loans.

Other services of a commercial loan broker include asset leasing, cash flow finance, and chattel mortgages. They also specialize in various kinds of business refinancing, including:

Commercial Real Estate Loans
Asset Based Lending
Short-Term Business Loans
Long-Term Business Loans
Business Cash Advance
Merchant Cash Advance
Business Lines of Credit
SBA Loans

The best thing about working with a business loan broker is it’s the lender who’ll pay them a commission for their services and not you, the startup owner.

Ways A Commercial Loan Broker Can Help Your Business

Working with a commercial loan broker will provide you with several benefits that you wouldn’t have realized with other traditional channels. Here are some of the benefits you’ll enjoy:

1. They’re Experienced In Commercial Finance

Your expertise will mostly be centered around business matters as a business owner. This means access to loans and such intricate details might be too complicated for you to understand. It’s exactly this reason why it’s best to work with a commercial loan broker because they’re knowledgeable about the different aspects such as interest rates, repayment choices, and the available options. They’re also experienced in better assessing your situation, allowing them to pick out the best lender to meet your financial needs.

2. Saves You Time And Money

Searching for the best financing deal is a long process because you’ll need to get in touch with different lenders to find one with the best deal. All this shifts your focus from your primary task, which should be running the daily operation of your business.

But working with a commercial loan broker saves you all these hassles altogether because they’ll be the ones tasked with finding a reliable lender. This shouldn’t take much time because business loan brokers usually have already formed existing relationships with lenders. In addition, their experience helps them quickly identify which loan best suits you. This would have taken a lot longer had you opted to go down this path by yourself and can also push for the quick disbursement of the required funds.

3. They Have Access To Numerous Lending Options

Commercial loan brokers can access the financial packages provided by a broad network of lending institutions. But if you chose to approach a bank personally, you wouldn’t have enjoyed this privilege and would instead only access a handful of their financial products. Knowing this, working with a commercial loan broker is better because it increases the chances of securing the much-needed financing to scale your business.

In addition, business loan brokers better understand the lending environment, and they can help you know what lenders usually look at when assessing your eligibility for a commercial loan. They also increase the chances of securing an incredible deal with low-interest rates.

4. Maintain The Traditional Approach

A commercial loan broker always takes time to understand your business and industry before doing anything else. Because of this, they’re in a position to provide you with personalized advice according to your business needs. Understanding this will be vital in helping you land a great financing deal to scale your business.

Takeaway

Commercial loan brokers with their excellent understanding of the business loan market will be of great help to ensure your company gets the needed financing. But as a risk-averse entrepreneur, it’s easy to be skeptical about how they might offer value to your business. It’s for this reason that this article sought to ease your nerves and take you through the benefits of how working with a commercial broker will benefit your business.

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Our Guide To Quickly Paying Off Your Credit Card Debt

November 17, 2021

Credit card debt can be a burden if it builds up slowly and paying it off is important, for your credit rating and also for peace of mind. Here is our guide to paying off your credit card debt as quickly as possible.

Take out a personal loan in emergency situations

If you are in an emergency situation to pay off your credit card in full there are last-minute options like payday loans. If you know you can pay these back then they could be an option for you. Just make sure you use the loan to actually pay off your credit card debt, not on something else that you might regret in future.

Make extra monthly payments

Don’t limit yourself to paying off one chunk of money every month, you can make two payments if you can manage to afford it. The interest on your credit card is compounded on a daily basis, the more you can pay off, the less interest you will be paying. If you get paid once a month it might be harder to pay two installments off your credit card, especially if you don’t want to run out of money. For those who get paid twice a month, this might be a more viable option. Get that debt paid off at the beginning of the month and you won’t have the chance to spend it later in the month, you will be forced to budget and spend reasonably.

Always check you are paying off the minimum payment by the monthly due date or you could risk getting late charges and penalties and this is the last thing you need when trying your best to get out of debt. If you lower your debt quickly, this can also help to improve your credit rating.

Find areas of life where you can budget

There are many areas of life where it’s easy to overspend, including eating out, transport and buying the latest gadget. Learn to cook at home and limit indulging in take-aways or eating out in restaurants regularly. You will then find you appreciate food much more when it’s cooked for you. It is simple to find recipes on websites and on YouTube, and cookbooks in your local supermarket or bookstore. Seeing how cheaply you can create restaurant meals yourself is a challenge and will help you save to pay back your credit card debts.

Think about the transport you use, would it be cheaper to buy a bike? If you start exercising more and cooking for yourself you will probably feel a lot better mentally and physically as well. You might own a car and definitely do need it for work then you could try and save on petrol by using it less on weekends. For those who rely on public transport, you can look into getting monthly discount travel cards or just cycle or walk on weekends.

The quicker you manage to pay off your credit card debt, the better for you. Just make sure you don’t let it build up again. Good luck with budgeting and paying off the debt, it can feel difficult at the beginning but once you get started you will be on a roll.

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Tax Substance: Why It is So Important When Doing Business in Hong Kong

November 17, 2021

For most entrepreneurs, the desire to see your enterprise morph into a revered multinational never leaves the minds. However, it is not easy because of the complexities associated with opening and running a business in Hong Kong. In Hong Kong, growing into a multinational becomes easy, cheap, and enjoyable if your enterprise can demonstrate tax substance. What exactly does tax substance mean? How do you demonstrate tax substance? Keep reading to get answers to these questions and a lot more about tax substance.

What is Tax Substance?

Before looking at the main activities that you can use to demonstrate tax substance in Hong Kong, let’s start by understanding what it is. Although there is no clear definition of tax substance in Hong Kong, the tax authorities will consider your enterprise to deliver substance if it contributes significantly to the growth of the island’s economy. For example, is your business paying all the required taxes on time?

Because Hong Kong is a small island with very little land for agriculture or mineral exploration, it spares no effort in ensuring that businesses help to support its economy. This is why you need to understand tax substance. The idea of tax substance is a gentle notion of telling investors that, “see: this jurisdiction is yours to exploit for growth, but in return, make sure to support the economy.”

What are the Risks of Not Demonstrating Tax Substance?

If you fail to demonstrate tax substance in Hong Kong, there are three major risks that are likely to face your business:

• Challenges Using Double Trade Agreements (DTA) Between Hong Kong and Other Jurisdictions

As we indicated earlier, most entrepreneurs are always looking for ways to grow their enterprises and transform them into multinationals. After registering a company in Hong Kong, the best way to achieve this is to use double trade arrangements, but it will be a major challenge without demonstrating tax substance. The Hong Kong Internal Revenue Department (IRD) will only approve your company’s tax residency status after demonstrating tax substance so that you can use it to take advantage of DTAs.

• Risk of Double Taxation in Other Countries

Hong Kong is very attractive to investors because of its low tax regime. However, efforts to expand to other jurisdictions could potentially raise the corporate tax if you do not have tax resident status. Particularly, your company is likely to suffer from double taxation, which could shrink your overall profits.

• Expanding to China Will Be Challenging

When expanding business to Hong Kong, most investors have their eyes fixed on taking advantage of the large Chinese market of more than 1.4-billion people. Using the Closer Economic Partnership Arrangement (CEPA), your Hong Kong enterprise should be able to enjoy duty-free export and preferential access to different sectors in China. Well, you will get none of this without demonstrating tax substance. Do not risk this type of loss because you can use expert assistance.

How to Demonstrate Tax Substance

The risks we have listed above are only a few, but they can be more. For example, you do not want to risk your license renewal getting declined only to realize that the cause was failing to demonstrate tax substance. So, let’s address it, “how do you demonstrate tax substance?” Here are some useful strategies that you might want to consider

Meeting all the business tax obligations, including remitting taxes to IRD on time.
Employing staff in line with the Hong Kong labor laws.
Maintaining a physical office in Hong Kong.
Holding meetings, such as annual general meetings and strategic meetings in Hong Kong.
Buying products for your production from other businesses in Hong Kong.
Partnering with other businesses to spur the growth of the Hong Kong economy.

As you can see, the process of demonstrating tax substance can be pretty complex because there is no clear definition, some businesses still fail to get the tax resident certificates after putting in a lot of effort. This is why you should consider working with an agency of experts to help you with developing clear strategies for growth, application for tax residency, and a lot more, such as payroll management.

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5 Innovative Finance Apps Helping Small Business Grow

November 17, 2021

It wasn’t too long ago that spreadsheets were considered the gold standard of financial management for small businesses. That era has passed, but still, some businesses aren’t aware of all the new options out there which are far more efficient.

There are hundreds if not thousands of finance apps, so it’s understandable for small businesses to not know which ones are best for them. Yet this doesn’t mean they should just stick to what you know, because the short term discomfort of switching systems can be more than made up with the long term gains.

We must cut through the noise and look at the apps most likely to be able to help your business grow. This can be through features that make you more attractive to customers or indirectly through reducing time wasted on the back end, so you can focus on the work you love and actually generating revenue.

You can do almost anything now through relatively cheap apps that are easy to use and set up. Here are some apps on the cutting edge.

1. Request.finance

It feels like cryptocurrency is constantly making headlines in today’s world. It’s breaking into the mainstream slowly but relentlessly, especially amongst the tech-savvy. Companies such as Tesla, Square, and Voyager hold significant amounts on their accounts, and using it for business-to-business payments is becoming a more common practice across all sectors.

If you’re forward-thinking, you might be wondering how you can get involved with digital assets without incurring any administrative nightmares. Luckily, Request.finance enables you to invoice and request payments using crypto with ease. Their technology allows you to keep track of everything, so you have nothing to worry about with the taxman.

The platform has handled significant volumes already, with over 900 users invoicing the equivalent of over $149 million so far. The best bit about it all is that even people without accounts can pay you with fees capped at $2, which represents major savings per transaction compared to fiat currency alternatives.

2. Zoho Expense

Small businesses are thinking bigger than ever before as the world becomes increasingly more connected. Though the pandemic drove business tourism down 61% in 2020, many experts believe it will bounce back strongly. There can be a lot of paperwork to do if you plan to travel abroad to meet up with potential clients, suppliers or other stakeholders. It can be hard enough staying on top of expenses when at home, let alone in a foreign country.

Zoho Expense can ease this friction, because it is purpose-built for business travel expenses. Within the app, you can host the complete itinerary details from the start of the trip to the end with all details that could possibly be required such as meal and seat preferences.

It’s also integrated with Sabre’s GetThere, so bookings can be made within the app itself. It reads receipts in 15 different languages and can create records in English for them just by scanning. These features help remove the hassle from business travel bookkeeping so the business can focus on getting the most out of each trip instead.

3. vcita

Cash flow management is of critical importance to small businesses for them to keep their doors open. Failure to manage your accounts receivables properly could mean cash comes in too slowly for you to keep up with your bills. Yet it’s not easy, and the traditional use of spreadsheets for management can quickly become overwhelming. Here’s where vcita can make everything simpler.

You can track all your customers and payments in one place. You’re able to see the entire history of interaction with each customer, as well as filter at a higher level to see trends. A key time saving feature is automated invoicing, which can be set up on a scheduled basis. All orders in “due” or “overdue” status will have professional invoices with all the correct information pulled through and sent to the client without any manual work for you or your team.

The efficiency combined with greater customer relationship management has meant this app is a must have for small businesses looking to set the foundations for growth.

4. Gusto

As your business grows, you’ll need more hands on deck to keep everything running smoothly. This comes with it’s own challenges, however, as payroll laws can often be complex and difficult for the average small business to manage. In the USA, the rules can vary state to state, with different forms needing to be issued and other obscure regulations. It’s not something small business owners can afford making major investments in.

Gusto makes managing payroll effortless. It automatically calculates your payroll taxes for you and generates all the proper documentation. It also lets you manage HSAs and 401(k)s too. They pride themselves on their fantastic UI with a fully featured mobile app. This allows you to manage things while on the go with ease.

Payroll is one of those tasks which you just can’t get wrong if you want to maintain a happy workforce. With Gusto, you can go on vacation and leave your laptop behind with the comfort of knowing you can ensure your staff get paid the right amount through the app.

5. Expensify

Tracking employee expenses can be a different situation for small business owners. They don’t want to treat their employees like they aren’t trusted but they need meticulous evidence for the tax authorities. Trying to chase employees to properly submit their expenses can be a huge time sink if it’s left unchecked.

The secret is to make it as easy as possible for employees to upload their expenses so there is minimal resistance. Expensify is perfect for this, as it allows people to take one click scans of expenses which upload to the cloud automatically. The chances of a missing receipt go down significantly as well as saving hours in manual processing.

Managers can see everything from a dashboard for fast approvals. You even get free cards for everyone in the team to use which reduces the administrative burden even further. You’ve got to spend money to make money and Expensify allows you and your employees to do that without creating a mountain of work in the process.

Wrap up

Small businesses now have access to many services in the palm of their hand that previously would have needed entire teams to manage. This is a huge empowerment that can help them compete on a more level playing field with larger competitors.

Whether it’s being innovative through sending cryptocurrency invoices through request.finance or putting customers first with vcita, they can do it all. Try out the apps in this list and see how it can prepare your business for growth.

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