By now, I’m sure you’ve heard that the inflation numbers in January rose to 7.5% as compared to a year earlier. This number surprised even the markets that were expecting it to be only 7.3%.
That alone is enough to make anyone worry as prices continue to climb and margins shrink in response. Now economists are talking about what will happen to the world economy if crude oil hits $100 per barrel.
Many are predicting that oil will hit that mark by the end of the month. The price was only $70 per barrel at the end of last year.
Increases in energy prices hit everyone. It means higher prices for food, transportation, heating, and many other necessities.
Some economists are predicting that this alone could increase inflation by another half a point in the second half of this year.
You need to get ahead of this. It doesn’t seem to be getting better any time soon, nor does anyone except the Federal Reserve seem to be doing anything about it.
Most businesses aren’t that profitable. Taking a 7.5% hit may not be something that your enterprise can withstand.
Raising prices isn’t a fun thing to talk about. It isn’t a good time on a Saturday night, but it is necessary.
You need to maintain your profits. Only whatever God you pray to has any idea what else is going to hit us this year.
It also means that your monthly work is more important than it usually is. Get your work into us today.
Let me leave you with this.
It’s Valentine’s Day, which is normally when I get the final version of my tax software updated and am able to begin sending out the returns that I have already completed. For some reason this year, I won’t receive the final updates on my Illinois S-Corp software until February 25th.
Regular Corps and 1040s will be even later this year as well.
We begin to ask intelligent questions like why would it take so long given the fact that very few relevant tax changes were passed this year? When you call Intuit, the manufacturer of most of the professional tax programs, they simply say something like we’re working on it.
I have 25 completed returns that I won’t be able to send out until everything is updated.
Don’t let the fact that I don’t yet have the final software package stop you from sending in your work today. Sooner is better than later. As always, if you don’t get us your final answers by March 1st, we won’t be able to guarantee that your returns will be completed by the deadline.
It takes time to do this work properly. If you know anything about us, it’s that fact that we always want to do it right.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.