ElementsCPA Microblog

Under new overtime rules issued by the U.S. Department of Labor:

• Effective 1 Jul 2024, most salaried workers who earn less than $844/wk ($43,888/yr) will become eligible for overtime pay
• And on 1 Jan 2025, most salaried workers who make less than $1,128/wk ($58,656/yr) will become eligible for overtime pay.

Then, starting 1 Jul 2027, these earnings thresholds will be updated every 3 yrs (rather than previous 5-9 yrs) to keep pace with changes in worker salaries and be more predictable for employers.

More detail in the DOL news release.

Xero’s mobile app is about to get some major upgrades taking it even further! 📱⚡

• [Coming soon] Tap to Pay: Starting early next year, businesses can accept payments on the spot using their mobile device. This makes it even easier to get paid, especially when you’re out and about.

• [Coming soon] Predictive cash-flow forecasting: Get a clear picture of your future finances directly in the app. AI-powered forecasting will help you anticipate cash flow needs, make informed decisions, and plan for growth.

• Create, modify and void invoices on the go: Need to send an invoice while you’re at a job site or meeting a client? No problem. Create, edit, or even void invoices right from your phone.
• Mobile bank reconciliation: Reconciling transactions is now easier than ever. Our upcoming sort and search feature makes it easy to navigate your bank statements on mobile. Plus AI-powered predictions suggest transaction details, saving you time and reducing manual effort.
• Drill down into P&L statements: Dive deep into profitability with just a few taps. Explore the transactions behind the numbers, identify any discrepancies, and fix errors, all from your mobile device.

Read more about on Xero’s blog announcement!

To all Xero users 📢 You may want to register for the beta of Xero’s new AI tool, JAX (I know we just did) 🤓 –>

This development is going to fundamentally change the way you complete routine business tasks on the go, as they can now be done outside of Xero. You won’t have to open up Xero to complete tasks like generating an invoice – just send an instruction to JAX via text message, WhatsApp message or email.

Here’s more on Xero’s GenAI strategy, including video demos that are very exciting - Check it out!

Was reminded of this quote recently while laying out goals for this fall …

Here’s to the spark of laborers everywhere who power it all🔋!

We’ll be closed Labor Day to honor them, and re-open Tuesday to further our mission helping power the creativity of entrepreneurs 🏄🏻‍♂️

Did you know? -> Even if you were never in a state all year, you may be required to file a ‘resident income tax return’ there.

It comes down to your “tax domicile” - i.e., ‘your true, fixed, permanent home’ (even if you weren’t there)

For a decent thumbnail, plus info on MD’s recent audits in this area, check out this article from Frost Law

Do you do business in DC? Then you almost certainly need a MyTaxDC login to take care of key compliance steps like personal property tax filings, franchise tax estimated payments, & more.

How do you get a MyTaxDC login? Check out this guide from DC on how to sign up.

(Added Bonus: If you add our firm as an authorized third-party, we can then assist you with those filings as well!) :)

The IRS recently released a ‘Scam Alert’ for misleading claims about non-existent “Self Employment Tax Credit” ->

We’ve actually had at least a handful of customers reach out to us about this one, and we like this line from the IRS' press release:

Taxpayers urged to talk to a trusted tax professional, not rely on marketers or social media for tax advice

I don’t fully know why, but the last few years there’s been this rash of small business ‘tax advice’ on TikTok, Instagram, & similar platforms from people who clearly don’t know what they’re talking about -> We have to agree with the IRS' advice on this one :)

Have you submitted your business' newly required “Beneficial Ownership Information Report” (BOI)?

Although still an unfolding situation, at a July 9 House Financial Services Committee hearing, Department of the Treasury Secretary Janet Yellen said ‘there are no plans to extend the Beneficial Ownership Information (BOI) reporting deadline’.

That deadline? Dec 31 for business that were already in existence when this year began.

For many small businesses it’s a fairly easy process – Check out our video tutorial in our YouTube channel for a walkthrough.

I recently heard a small business owner share the insight quoted below …

Is it time for you to pull aside and look at the big picture?

Our mission here at ElementsCPA is to help you design your business & your finances

Xero (our preferred online accounting platform) is giving away $460,000 to Xero customers across the globe as part of the Xero Beautiful Business Fund – Entries are now open & you can apply in one of the following 4 categories:

• Innovating for environmental sustainability
• Strengthening community connection
• Trailblazing with technology, &
• Upskilling for the future

Check out the link above for more details and be sure to submit before Aug 27 (and if you remember, be sure to mention us as referring - we could get a prize too)! 🏆

Status Update: Our support team member, Alcides, is on vacation through mid-next week 🏖️

Our team is covering his duties in the interim & appreciate your flexibility

For any phone calls, please be sure to leave a voicemail so we can reach back within 24 hours ->

Thanks & happy Monday!

A business’ cost structure as it scales typically mirrors more stair steps than upward sloping line

If you’re not deliberate, you could get caught with a cost structure of one stair matched with the revenue structure of the previous stair 😕

So decide on your optimal size & don’t get stuck between steps

Our team wishes you a 🎆 happy 4th of July!

We’ll be closed in honor of our nation’s birth, then back on Friday to continue helping power the creativity of the entrepreneurs we collaborate with! ⚡ > 🔌 > 🎨 > 🖼

Curious how to use AI in your small business?

Check out this primer from Xero to get quick insight on:

• What AI lingo means (like “GenAI” and “LLM”)
• Examples of how other small business owners are starting to use AI
• First steps you can take to get started using AI yourself

Looking for a bank that’s:

• Online
• Easy-to-use
• Feature-rich, &
• Small business-friendly

Check out our referral Relay Bank, where ElementsCPA does its primary banking too!

BIG changes to MD labor law to take effect in 2025 ->

New requirement for quarterly wage & hour report to calculate a new benefit: “Family & Medical Leave Insurance”

Depending on biz size, also required to remit 0.45% towards (a la unemployment insurance)

More info: MD DOL Paid Leave website