Tip Jar with Selena Martin
Chief Strategy Officer & Managing Partner at Adesso Capital
Self-employed girlies, this one’s for you! As avid side hustlers and former freelancers, we know being self-employed can be stressful. And Covid didn’t make it any easier. The virus didn’t just impact our physical health, but our financial health, too. But there’s a tool (shoutout Adesso360!) that can help you file for the Covid relief funds without feeling overwhelmed.
You might be wondering, “What Covid relief funds?!” Well, if you as a self-employed person missed work due to Covid, you might qualify to get back up to $32k. And that’s why we got Selena Martin (she/her), Chief Strategy Officer and Managing Partner at Adesso Capital, to give us info about doing just that. Take it away, Selena!
So, what exactly does Adesso360 do?
Adesso360 revolutionizes the way people can access tax credits. It’s the first platform to automatically calculate tax credits and amend tax returns without requiring financial data from the customer, such as actual tax returns. There’s a handful of other companies who are doing this, but they’re all manual. What we did is create a patent-pending technology that actually gets your tax transcripts from the IRS. That means you’re not digging through your old returns, uploading documents left and right, or answering all these questions that a competitor would ask because they don’t have your data. Since we get your info directly from the IRS, it reduces the chance of answering anything wrong because our technology grabs it, analyzes it, and calculates the maximum FFCRA tax credits you should get. Then, it amends those returns and e-files it for you. That’s right—no paper printing is involved!
Speaking of FFCRA, what is it and why should we care about it?
The FFCRA is the tax credit portion that Congress created as an act that allowed the IRS to provide tax credits to employers, and then later to self-employed individuals. When FFCRA was first issued, it was only for employees and employers. When Congress expanded the Act and opened it up to self-employed individuals (see: sole proprietors, 1099 contractors, gig workers, freelancers, single-member LLCS, etc.), there was such little awareness which led to millions of people to not take action who were entitled to money.
That’s a huge deal! What are some other industries that were impacted by Covid, and could hence benefit from Adesso360?
Covid was non-discriminatory—people across virtually every industry were impacted. A few examples include non-essential businesses like the event space (caterers, event planners, wedding photographers), personal care (hair stylists, barbers, massage), transportation (trucking, uber drivers), and construction.
So true. A lot of our readers are self-employed and/or have their own businesses. How can they figure out whether or not they have tax money to claim back?
First, they need to have paid taxes on self-employed income in 2020 or 2021 and missed out on self-employed income opportunities due to Covid-related reasons. Then, they can take our free, five-question quiz which is so easy, it can be done on your phone.
On average, how much money do most self-employed people get back from using Adesso360?
For about two hours worth of work on their side, which mostly is getting the days they missed, self-employment work, and e-signing documents, they can get tax credits up to $32,200. On average, we are seeing people receive a check for $9k. And it’s money you don’t have to pay back either because it’s a refundable tax credit. As long as you don’t have outstanding tax liabilities, you get a physical check in the mail, too.
A recent customer, Latrice McCoy, says: “I got my check eight weeks after I filed, and it was over $10k that would have been lost forever. I couldn’t get over how easy the whole process was. And the fact that most tax paying people probably don’t even know this refund exists, well, that breaks my heart. I had never heard of the refund until this last month. But now, that $10k is going right back into my business.”
What advice would you give to small business owners who receive tax credits?
Part of what these refundable tax credits can do is serve as your additional money that you weren’t expecting to come in. Other things to consider are:
- Start with a Solid Business Plan: Your business plan should include detailed financial projections, market analysis, and a clear business model. This plan will serve as a roadmap and help you stay focused on your financial goals.
- Understand Your Financials: Gain a strong understanding of your business’s finances, including cash flow, profit and loss statements, and balance sheets. This knowledge is crucial for making informed decisions.
- Manage Cash Flow Carefully: Cash flow management is critical for the survival of small businesses. Monitor your cash flow regularly and maintain a buffer for unexpected expenses.
- Keep Personal and Business Finances Separate: This helps in maintaining clear financial records and makes tax preparation easier. Use a business bank account and credit card solely for business transactions.
- Minimize Costs: Regularly review and manage your expenses. Look for ways to reduce costs without compromising on the quality of your products or services.
- Plan for Taxes: Stay informed about tax obligations and deadlines. Consider working with a tax professional to ensure compliance and take advantage of potential tax benefits.
- Invest in Marketing Wisely: Effective marketing can boost your business’s visibility and revenue. Focus on strategies that offer the best return on investment, such as digital marketing or community engagement.
- Build an Emergency Fund: Save a portion of your profits to create a financial cushion. This fund can help your business survive during tough times.
- Continuously Monitor and Adapt: The business environment is always changing. Regularly review your business strategy and financial performance, and be prepared to adapt as needed.
- Seek Professional Advice: Don’t hesitate to consult with financial advisors, accountants, or other professionals. Their expertise can provide valuable insights and help you avoid common pitfalls.