# Ways Small Businesses Can Take Advantage of the Current Economic Climate
As the U.S. unemployment rate hits a five-decade low of 3.7 percent, small businesses in America are experiencing unprecedented growth opportunities. Recent tax cuts and continued deregulation are increasing businesses’ bottom lines, allowing them to invest in new equipment, technology and other resources needed for expansion. If you’re a small business owner, now is the time to take advantage of the current economic climate and use this time to fortify your operations. Here are four ways to get started:
## 1. Make Strategic Long-term Investments Using Immediate Expensing
The recently passed Tax Cuts and Jobs Act now allows businesses to immediately expense depreciable tangible assets, such as manufacturing equipment or computers, in the year in which they’re purchased. In previous years, small business owners were required to depreciate tangible assets throughout their life cycle. This means that now could be the ideal time for your small business to invest in the technology, equipment or other resources it might need for expansion. The new allowance is currently set to last through 2022, after which the “original use” provision will be reinstated. Under the old rules, only the first owner of a depreciable tangible asset was able to qualify for immediate expensing.
## 2. Eliminate Debt and Build Up Your Cash Reserves
With the corporate tax rate reduced to 21% earlier this year, plus a significant boost in available deductions for capital equipment, small business owners should have more cash on hand. Savvy owners should use some of that cash to pay off credit card debt, mortgages, or other loans. Doing so can help get businesses on better financial footing and secure additional credit when needed. Alternatively, businesses can build up their existing cash reserves to increase flexibility and ensure a better-stocked “rainy day” fund.
## 3. Keep Employees Happy and Consider Hiring New Ones
When the unemployment rate gets as low as it is currently, it can be a challenge for companies and small businesses to hire and retain qualified, knowledgeable employees. Business owners can get ahead of this challenge by keeping their current employees happy and motivated. Since the passage of the TCJA earlier this year, hundreds of businesses have passed corporate tax savings on to employees, through increasing wages, boosting contributions to 401(k) accounts, and adding new employee benefits. Moves like these can help businesses retain their best team members while creating a more attractive work culture for potential new hires.
## 4. Take Control of Your Company’s Financials and Strategic Planning
Navigating the intricacies of tax requirements, deadlines, and tax strategies can be daunting for small-business owners. That’s why it’s critically important for entrepreneurs to take a crash course in accounting themselves or to surround themselves with knowledgeable, creative professionals that can maximize their business’s potential and take administrative tasks off their plate. Using services like Infinit Accounting can help small business owners concentrate more on developing new business and providing solutions to clients, while a team of qualified tax and accounting professionals manages the company’s bookkeeping, taxes, and overall financial health.
In conclusion, small businesses that take advantage of the current economic climate by investing in long-term growth, eliminating debt, treating employees well, and taking control of their financials can position themselves for success.
