New Survey Finds Small Business Owners Lack Resources for Handling Tax Credits
Omega Accounting Solutions today released the results of a new survey finding that 63% of business leaders and decision makers feel their business lacks resources or needs help handling tax credits. With rolling sunset deadlines to claim eligibility for the Employee Retention Tax Credit (ERC) quickly approaching beginning March 2023, qualified small businesses are running out of time to claim their vital ERC refunds.
"There are millions of unclaimed dollars available, and nearly any business impacted by the pandemic is eligible to claim their credit," said Jay Woods, founder and president of Omega Accounting Solutions. "Employers worked hard to stay afloat during the pandemic. They simply didn't have the bandwidth to manage constantly shifting business environments; learn and adhere to local, state, and federal regulations; and discover the ins and outs of the ERC to see if they were eligible."
The nationwide survey, by Atomik Research, was conducted from August 11 to 18, 2022 on behalf of Omega Accounting Solutions. The survey was conducted online among a sample of 803 general managers and members of the executive management of businesses (i.e., C-suites and presidents/owners) across the United States.
The survey found:
- Nearly 9 in 10 (89%) of those surveyed say that between the pandemic, inflation and labor shortages, they feel it is nearly impossible for small businesses to thrive in today's economy.
- Almost 9 in 10 (89%) respondents say the surge in operating expenses and/or the cost of goods have made paying employees a competitive wage unaffordable.
- 83% of respondents feel the early 2020s have been the worst time for small businesses since the Great Depression.
- 81% of business leaders and decision-makers indicated that business is suffering because they lack knowledge of or adequate counsel on accounting procedures, financial planning and related business tasks.
- Nearly a third (31%) of survey respondents indicate that the tax or financial experts who typically assist with their business's tax needs did not provide accurate or enough information regarding the ERC.
- 45% of respondents who believe they are ineligible to claim ERC benefits, believe their business is ineligible because they have already applied for a Payment Protection Program (PPP) loan.
Omega analysts believe these survey results indicate that small businesses are often underserved when it comes to tax credits. Most executives lack expert guidance in accounting and finance, leaving them to rely on outdated information or form misconceptions that may prevent them from utilizing tax advantages.
"ERC funds may continue to help businesses remain operational during ongoing economic hardship," continued Woods. "After the worst of the pandemic, many businesses still face labor shortages, skyrocketing costs of doing business and threats of a potential recession."
With the wait time for Employee Retention Credit (ERC) refunds currently up to a year, Omega Accounting Solutions recently launched Omega Funding Solutions (OFS), a third-party lender offering ERC funding assistance to Omega Accounting Solutions' ERC clients, businesses that have not yet filed for their ERC and employers that have filed with other processors. No matter the industry, OFS helps businesses anywhere in the U.S. continue managing their expenses, using funds for working capital, to purchase new equipment or expand their business. OFS serves small and mid-sized businesses that need the money now through bridge loans against their refund value to help keep businesses up and running while they wait.
For further information or to download the survey, visit https://www.omegataxcredits.com/survey.
ABOUT OMEGA ACCOUNTING
Omega Accounting Solutions is an accounting and data firm that empowers small businesses to make informed business decisions through the production of accurate and timely books that yield insightful and actionable reports. The Irvine, Calif., firm founded by Jay Woods in 2007 works with CFOs, controllers, accountants and software developers to collect, integrate, analyze and present essential data that allow for healthy corporate operation and growth. In 2016, Omega launched a Business Intelligence Division to provide firms with customized programs, KPIs and continuously refreshed dashboards that allow them to connect data silos and take advantage of real-time opportunities in the marketplace. For further information, visit https://omega-accounting.com/.
News published on and distributed by:
