Most small business owners don’t have the resources to process tax credits

According to a recent survey by Omega Accounting Solutions, 63% of business leaders and decision makers say their businesses lack the resources or need help with tax credits.

With the rolling sunset deadline to qualify for the Employee Retention Credit (ERC) fast approaching starting in March 2023, there is no time left for eligible small businesses to claim an ERC refund.

“There are millions of dollars unclaimed, and nearly every business impacted by the pandemic is eligible,” said Jay Woods, founder and president of Omega Accounting Solutions. “During the pandemic, employers are working hard to stay afloat. They There simply isn’t the bandwidth to manage the changing business environment; learn and comply with local, state and federal regulations; and learn the ins and outs of ERCs to see if they qualify.”

The national survey conducted by Atomik Research was conducted in August 2018. 11-18 2022 represents Omega Accounting Solutions.The survey was conducted online among a sample of 803 general managers and business executives (such as senior executives and presidents/owners) across the United States

The survey found:

  • Nearly nine in 10 (89%) respondents said that between the pandemic, inflation and labor shortages, they believe it is nearly impossible for small businesses to thrive in today’s economy.
  • Nearly nine in 10 (89%) respondents said that a surge in operating expenses and/or cost of goods made it unaffordable to pay employees competitive wages.
  • 83% of respondents believe the early 2020s to be the worst time for small businesses since the Great Depression.
  • 81% of business leaders and decision makers say businesses are suffering because they lack understanding or adequate advice on accounting procedures, financial planning and related business tasks.
  • Nearly one-third (31%) of survey respondents indicated that tax or financial professionals who typically assist with their business tax needs did not provide accurate or sufficient information about ERCs.
  • Forty-five percent of respondents who thought they were ineligible for ERC benefits thought their business was ineligible because they had already applied for a Payment Protection Program (PPP) loan.

According to Omega analysts, these findings show 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 to develop misconceptions that could prevent them from taking advantage of their taxes.

“ERC funds are likely to continue to help businesses stay afloat through continued economic hardship,” Woods said. “After the worst of the pandemic, many businesses still face labor shortages, skyrocketing costs of doing business and the threat of a potential recession.”

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