Marcum by Numbers

08/09/2024

🏡 Thinking About Using Your IRA to Buy a Home? Here’s What You Need to Know! 🏡

Buying a home is an exciting but expensive journey, and you might be considering tapping into your traditional IRA to help cover the costs. Did you know that there's a way to withdraw up to $10,000 without facing the usual 10% penalty? Here’s how it works:

📌 Key Points to Consider:

First-Time Homebuyer? You might qualify even if it’s not your first-ever home, as long as you haven’t owned a principal residence in the past two years.
Help for Family: You can use the withdrawal to help your spouse, child, grandchild, or even a parent buy a home.
Timing Is Everything: Make sure to use the funds within 120 days on qualified acquisition costs like the purchase price, closing costs, or construction.
💰 Is It the Right Move?
While this can be a helpful option, remember that the withdrawal is still subject to income tax, and it reduces your retirement savings. Weigh your options carefully and consider other funding methods like first-time homebuyer programs or 401(k) loans.

Need advice? Our office is here to help you navigate the complexities of home buying and ensure you're making the best financial decisions. Contact us today!

08/08/2024

📦 How to Keep Control Over Inventory: Tips for Business Owners 📦

Managing inventory effectively is crucial for any business. While having adequate stock is necessary, too much inventory can be expensive due to purchasing, storage, safeguarding, and insurance costs. Here's how to keep your inventory lean and efficient without compromising on revenue or customer service.

🔍 Where to Begin:

Conduct Accurate Counts: Start with a precise physical inventory count to determine your true cost of goods sold and identify discrepancies between physical counts and records.
Benchmark Costs: Compare your inventory costs to industry standards. Strive to meet or exceed metrics like gross margin, net profit margin, and days in inventory.
Analyze Costs: Understand your cost of goods and identify where to cut. Negotiate better prices with suppliers and consider the carrying costs of inventory.
📈 More Steps to Take:

Optimize Days-in-Inventory: Stock more high-margin, high-demand products and reduce low-margin, slow-moving items.
Balance Product Mix: Keep a broad product mix that meets customer needs. Negotiate faster delivery from suppliers to prevent lost sales.
Streamline Processes: Use inventory management software to track stock levels and automate tasks for better efficiency.
Monitor and Adjust: Regularly review inventory levels and adjust based on sales trends. Conduct periodic audits to ensure accuracy.
🎯 Stay Focused: Effective inventory management is key to achieving your business goals. Prioritize it to remain agile and cost-effective.

Need help with inventory management? Reach out to us for expert advice!

08/07/2024

🌟 A Tax Break for Educators: Maximize Your Savings on Classroom Expenses! 🌟

As the new school year approaches, many dedicated teachers find themselves buying classroom supplies out of their own pockets. Did you know there's a special tax break that can help you get some of that money back?

🕰 History of the Deduction:
Before 2018, teachers could deduct unreimbursed out-of-pocket expenses if they were ordinary and necessary. However, it was subject to a 2% AGI floor and required itemizing deductions. The Tax Cuts and Jobs Act (TCJA) suspended these deductions but kept the educator expense deduction, ensuring teachers still get some relief!

💡 What’s the Educator Expense Deduction?
Introduced in 2002, this above-the-line deduction allows qualifying teachers and eligible educators (like counselors and principals) to deduct up to $300 of out-of-pocket classroom expenses in 2024. Two married educators filing jointly can deduct up to $600, with a $300 limit each.

📚 Qualified Expenses Include:

Books
Supplies
Computer equipment and software
Professional development courses
Other classroom materials
⛔ What’s Not Included:

Homeschooling supplies
Nonathletic supplies for health or physical education courses
🔍 Why It Matters:
This deduction is subtracted from your gross income to determine your AGI, so you can claim it even if you don't itemize deductions. It's a great way to reduce your taxable income and save money!

👩‍🏫 Stay Informed and Save:
Educators, make sure to take advantage of this valuable tax benefit. Keep detailed records of all your purchases and receipts. If you have any questions or need assistance, feel free to reach out to us for more details!

Thank you for all you do to shape the future. Let's make sure you get the support you deserve! 🌟

08/06/2024

Sure, here’s a condensed version of the article suitable for a Facebook post:

Tax Considerations When Choosing a Business Entity

Starting a business or considering a change in your business entity? One of the crucial decisions you'll need to make is how to organize your company. Should you operate as a C corporation or as a pass-through entity like a partnership, LLC, or S corporation? Here's what you need to know:

Tax Treatment Basics: Corporate federal income tax is a flat 21%, while individual rates range from 10% to 37%. Pass-through entities may benefit from the Qualified Business Income (QBI) deduction, available until Dec. 31, 2025.
More to Consider:
Profit Distribution: Pass-through entities avoid double taxation.
Appreciating Assets: Pass-through entities may offer better tax outcomes on asset appreciation.
Tax Losses: Deduct losses against other income with pass-through entities.
Alternative Minimum Tax (AMT): C corporations may be advantageous if the owner is subject to AMT.
Many factors influence this decision. For personalized advice, contact us at Marcum by Numbers to discuss your specific situation.

05/16/2024

🚀 Starting a New Business? Don’t Forget Bookkeeping and Accounting! 🚀

While setting up your new business, don't overlook bookkeeping and accounting. Proper financial management helps track cash flow, budget, and make strategic decisions. Here’s a quick checklist to get you started:

Keep detailed financial records.
Understand tax deductions.
Manage 1099 forms.
Choose between cash or accrual accounting methods.
Reconcile bank accounts regularly.
Categorize transactions accurately.
Keep receipts for audits.
Pay bills and vendors on time.
Prepare and analyze financial statements.
!

Send a message to learn more

05/15/2024

🚀 Filing Self-Employed Taxes for the First Time? Here’s What You Need to Know! 🚀

Filing self-employed income taxes can be overwhelming. Here’s a quick guide to help you through the process:

Prepare Your Records:

Keep detailed financial records.
Track business expenses for deductions.
Understand Deductions:

Know what counts as deductible to lower taxable income.
1099 Forms:

Receive/send 1099-NEC if earning/paying $600+.
File Your Taxes:

Use Schedule C for income and expenses.
Pay self-employment, federal, and state taxes.
Plan Ahead:

Pay estimated quarterly taxes if you expect to owe $1,000+.

Send a message to learn more

05/14/2024

🚀 How to Launch Your Etsy Store and Reach Millions of Customers! 🚀

Thinking about starting an Etsy store? Follow these steps to set up and optimize your store, reaching Etsy’s 80M+ potential customers:

The Process:

Create Your Account:

Visit Etsy and sign up.
Setup Your Shop:

Choose your language, country, and currency.
Select a unique shop name.
Add Your First Product:

Upload up to 10 high-quality photos.
Create a short product video.
Write a detailed title and description with keywords.
Set pricing and inventory details.
Optimize Your Store:

Use Canva for images/videos.
Add alt text to images.
Conduct keyword research with tools like Everbee.
Final Steps:

Enter bank details.
Verify your account.
Customize your store with a logo and banner.
Managing and Marketing Your Store:

Regularly update listings.
Engage with customers.
Use Etsy ads and run promotions.
Integrate with other platforms like Shopify.
Starting an Etsy store can enhance your business’s reach. Stay informed, adapt, and leverage tools to maximize your store’s potential. Questions?

Send a message to learn more

05/13/2024

🚨 New Challenges for Amazon Sellers: What You Need to Know 🚨

Thinking of starting or continuing your journey as an Amazon seller? 🤔 It's vital to stay informed about the significant changes that have reshaped the platform recently.

📈 Recent Shifts on Amazon:
Amazon has introduced new fees and policy changes, making the selling landscape more complex and potentially less profitable. Even though Amazon reported a 20% increase in third-party seller revenue in Q4 2023, much of this growth stems from increased FBA fees, not actual sales growth.

🛒 Increased Costs for Sellers:

Inbound Placement Fees: Starting March 1st, sellers now face fees up to $6 per unit for inventory handling.
Low Inventory Search Charge: From April 1st, penalties are imposed for low inventory levels, complicating inventory management.
📊 Impact of Advertising Costs:
With a 27% increase in ad revenue, Amazon continues to shift towards a pay-to-play model, pushing organic listings down in favor of sponsored products.

🌍 Rise of Chinese Sellers:
Chinese sellers, benefiting from government subsidies, now make up nearly half of the top Amazon sellers in the USA, intensifying competition.

🔄 Returns and Hidden Costs:
High return rates and associated costs can significantly impact profits, with policies favoring buyers over sellers.

🔍 Is Selling on Amazon Still Worth It?
While Amazon offers extensive reach, the rising costs and complexities may diminish its appeal. It's crucial to adapt and consider diversifying across different e-commerce platforms to mitigate risks.

📚 Stay informed and explore your options to ensure your e-commerce venture remains viable and competitive. Consider subscribing to updates and exploring educational resources to navigate these changes effectively.

Send a message to learn more

05/10/2024

Shift4Shop vs. Shopify: Which E-commerce Platform is Right for You?

Shift4Shop is the most compelling e-commerce platform I've come across in a while, and it has the best chance to dethrone Shopify. Here's a detailed comparison of Shift4Shop vs. Shopify so you can make an informed decision.

Who Is Shift4Shop and What Do They Offer?
Shift4Shop is essentially the same platform as 3dcart. In 2020, Shift4 acquired 3dcart and made their platform 100% free when using Shift4 as the primary payment processor.

Who Is Shift4?
Shift4 Payments is a leading provider of payment processing and technology solutions, powering over 350 software providers and 200,000+ businesses. With over $200 billion in payment volume, Shift4 offers their e-commerce platform for free, recouping costs through their payment processing solution.

Shift4Shop vs. Shopify: A Detailed Comparison
1. Cost

Shopify: Appears to cost $29/month, but most store owners end up paying hundreds due to monthly plugin fees.
Shift4Shop: Offers all essential features out of the box at zero cost. To use it for free, you must qualify for their payment processing plan. Otherwise, you'll be charged a fee equivalent to Shopify's pricing.
🏆 Winner: Shift4Shop

2. Search Engine Optimization (SEO)

Shopify: Limited URL customization. Example: yourstore.com/collections/suspension/products/product-name
Shift4Shop: Fully optimized URL slugs and a suite of built-in SEO tools (sitemaps, redirects, canonical URLs, meta tags).
🏆 Winner: Shift4Shop

3. Design and Ease of Use

Shopify: Larger developer ecosystem with more templates, and simpler user interface.
Shift4Shop: Over 100 themes are available, but the platform's complexity can challenge beginners.
🏆 Winner: Shopify

4. Out-of-the-Box Functionality
Shift4Shop offers several features for free that would typically cost $50-$200/month on Shopify:

Affiliate Program: Pay influencers/site owners for each sale they generate.
Wholesale Customer Groups: Special pricing levels for specific customers.
Loyalty Programs: Reward programs for customer purchases.
Free Email Marketing: Email autoresponders and broadcast campaigns.
🏆 Winner: Shift4Shop

5. Third-Party Ecosystem

Shopify: Over 20x the number of stores as Shift4Shop, resulting in a larger third-party developer ecosystem and a plugin for nearly everything.
🏆 Winner: Shopify

6. Blogging

Shift4Shop: Superior SEO tools and free email marketing provide an edge.
🏆 Winner: Shift4Shop

Personal Thoughts and Recommendations
Shift4Shop is an attractive long-term alternative to Shopify due to its comprehensive features and free pricing model. While it might not have all the cutting-edge features of Shopify yet, Shift4 has deep pockets and is expected to improve over time.

Why Choose Shift4Shop Over Shopify?
Free: No monthly fees if you qualify for Shift4's payment processing.
Full Features: All essential features are available out of the box.
SEO-Friendly: Better URL optimization and built-in SEO tools.
Why Choose Shopify Over Shift4Shop?
Developer Ecosystem: A larger pool of third-party apps and developers.
Simplicity: Easier to use for beginners due to its simpler features.
Conclusion
Ultimately, the choice between Shift4Shop and Shopify boils down to your preferences. If you're tired of getting nickel-and-dimed and don't want to deal with a multitude of apps, Shift4Shop is a strong alternative. But if you need access to a wide range of third-party tools and prefer simplicity, Shopify is still a solid option.

Send a message to learn more

05/09/2024

A Guide to Selling on Amazon Handmade 🎨
Ever wondered if your arts and crafts projects could be more than just a hobby? Today, we're stepping into the world of Amazon Handmade to discover how your handiwork can bring in some extra income.

Etsy used to be the only game in town for selling handmade goods, but recent changes on Etsy—like banning new sellers and reintroducing Chinese sellers to the platform—have made Amazon Handmade a strong alternative.

Why Amazon Handmade?
Amazon Handmade is 10x larger than Etsy, with 61% of its sellers making over $1,000 in monthly sales. Plus, you can start selling on Amazon Handmade with zero upfront costs. Here's a step-by-step guide to making your first sale and strategies to help you succeed:

What is Amazon Handmade?
Amazon Handmade is a subdivision of Amazon that caters specifically to sellers making handcrafted products. To qualify as handmade, your product must meet one of these criteria:

Made Entirely by Hand: Crafted without mass production machinery.
Altered by Hand: For example, hand-painted shoes.
Customized/Personalized by Hand: Like hand-embroidered towels.
Who Can Sell on Amazon Handmade?
To sell on Amazon Handmade, you must:

Have a company with fewer than 20 employees.
Do not outsource or resell third-party products.
Avoid drop-shipping and mass production.
Do not sell digital products, food items, or electronics.
Selling Costs

Free Account Setup: No subscription or listing fees.
15% Referral Fee: Charged on every sale.
How to Sell on Amazon Handmade

Apply for an Account:
Answer questions about your employees, the production process, and more. Approval can take 2 days to 2 weeks.
Research Profitable Products:
Look for products with many reviews.
Use Google Trends to gauge demand.
Check Etsy for top-selling items.
Use Jungle Scout to analyze other sellers' sales.
Create a High-Converting Listing:
Keywords: Use tools like Jungle Scout to find relevant keywords.
Quality Photos: At least 1,000 pixels; fill all photo slots.
Bullet Points: Write an enticing copy with your keywords.
Advertise with Amazon Sponsored Product Ads:
Sponsored Product Ads: Appear in search results and product pages.
Amazon DSP Ads: Video and image ads both on and off Amazon.
Key Differences: Amazon Handmade vs. Etsy

Approval Process: Etsy is immediate, Amazon requires strict approval.
Production Rules: Etsy allows third-party production, while Amazon requires in-house production.
Fees: Etsy has a 6.5% transaction fee, and Amazon charges a flat 15%.
Payment Schedule: Amazon pays every 2 weeks, and Etsy pays immediately.
Pros and Cons of Amazon Handmade
Pros:

Amazon Associates Program: Earn extra from external sales.
Huge Audience: 2.7 billion monthly visits, 50% of e-commerce market share.
No Listing Fees: Listings never expire.
Exclusivity: A strict approval process ensures genuine handmade goods.
Amazon FBA: Prime badge eligibility and 2-day delivery.
Custom Storefronts: Showcase your brand's story.
Cons:

Strict Approval Process: Takes up to 2 weeks to get approved.
Delayed Payments: Paid every 2 weeks.
Limited Categories: Only 14 product categories.
Hidden Customer Info: Makes repeat business harder.
High Fees: 15% selling fee.
Organic Visibility: Handmade products are less visible in organic searches.
Should You Sell on Amazon Handmade?
Given that signing up is free with no listing fees, there's no risk to starting an Amazon Handmade business. Despite the high fees, Amazon's massive reach makes it worth the cost.

Conclusion
If you make your own products and have fewer than 20 employees, consider Amazon Handmade. Remember, it's wise to list your goods on multiple marketplaces like Amazon and Etsy to maximize sales. 🎨

05/08/2024

Discover the Best Marketplaces for Your Handmade Goods 🎨

Etsy is well-known as a marketplace for buying and selling handmade, custom, and vintage goods, with over 80 million active buyers. If you're looking to sell your arts and crafts, Etsy is an excellent starting point. But it's not the only option! To maximize your sales, it's wise to list your handmade goods on as many marketplaces as possible.

Here's a breakdown of some top Etsy alternatives and how they compare:

1. Shopify
Shopify lets you sell your crafts and handmade goods on your own website. With Shopify, you own the platform and have full control.

Pros:
✔️ No Selling Fees: Keep all the profit.
✔️ Full Control: Customize your product presentation.
✔️ Customer Access: Build relationships via email and SMS marketing.

Cons:
❌ Monthly Fees: $29-$299/month.
❌ More Work Upfront: Learn to build your website.
❌ No Built-In Audience: Drive your own traffic.

2. Amazon Handmade
Amazon Handmade allows artisans to sell handcrafted products within Amazon's vast marketplace.

Pros:
✔️ Built-In Audience: Over 300 million active users.
✔️ No Listing Fee: Pay a 15% referral fee per sale.
✔️ Brand Recognition: Trusted brand with fraud protection.

Cons:
❌ High Commission Fees: 15% per product.
❌ Bargain Hunting Reputation: Known for cheap, off-the-shelf products.
❌ Limited Categories: Only 16 available, no digital products.

3. Bonanza
Bonanza is a seller-centric marketplace where you can build relationships with customers.

Pros:
✔️ Low Commission Fees: Just 3.5%.
✔️ Easy Product Import: Import from Amazon, Etsy, and more.
✔️ Customer Relationships: Access customer information.

Cons:
❌ Low Traffic: Fewer listings and smaller audience.
❌ Delayed Inventory Syncing: May not update in

real-time.
❌ Low Sales: Sellers report lower sales than on larger marketplaces.

4. Redbubble
Redbubble is a print-on-demand company that helps designers sell their art globally.

Pros:
✔️ Great Side Hustle: Passive income after uploading designs.
✔️ Easy to Use: User-friendly interface and upload process.
✔️ No Inventory Management: Print-on-demand means no inventory headaches.

Cons:
❌ No Control Over Inventory: Sellers have no control over print quality.
❌ No Instant Payments: Pays out on the 15th of each month.
❌ High Competition: A free platform leads to increased competition.

5. eBay
eBay is a well-known alternative to Etsy and Amazon, with 182 million active users.

Pros:
✔️ Built-In Audience: Reach buyers worldwide.
✔️ Brand Recognition: Established brand authority.
✔️ Versatile Listings: Auction-based or fixed-price listings.
✔️ Convenient Shipping: Collaborates with shipping partners.

Cons:
❌ Extra Fees: 35¢ listing fee upfront and 10-15% of final order value.
❌ Piracy Issues: Counterfeit products are still a problem.
❌ Limited Listings: New sellers are limited to 10 products/month.
❌ Reputation for Cheapness: Go-to place for bargain shoppers.

6. Folksy
Folksy is a UK-based Etsy alternative with a focus on handcrafted gifts and supplies.

Pros:
✔️ No Commission on Postage: Charges only on items, not shipping.
✔️ Unlimited Listings: Pay £5/month for unlimited listings.
✔️ Easy Import: Import product listings from Etsy.
✔️ Instant Payments: Receive compensation immediately via PayPal.

Cons:
❌ UK-Only Sellers: Restricts sellers outside the UK.
❌ Low Traffic: Doesn't have the same reach as Etsy.
❌ Inconvenient Shipping: Lacks fulfillment centers and robust shipping software.
❌ Bad Mobile App: Buggy, requiring desktop access for some features.
❌ No Currency Conversion: Prices only in GBP.

7. Just Artisan
Just Artisan is a handmade marketplace supporting independent artists, makers, and entrepreneurs.

Pros:
✔️ Sell Digital Goods: Allows listing of digital items.
✔️ No Listing Fee: 7.5% selling fee per sale.
✔️ Artisan-Centric: Builds a community of independent artisans.

Cons:
❌ Low Traffic: New platform with a limited audience.
❌ Higher Commission Fee: 7.5% is higher than Etsy’s 6.5%.

Conclusion
The best Etsy alternatives depend on the products you sell. For instance, designers seeking a hassle-free way to print and ship should consider print-on-demand companies like Redbubble. Ultimately, your goal should be to start your e-commerce website.

Why?
Owning your online store gives you control over your brand, customer relationships, and profit margins. Building lasting relationships with your customers increases your repeat purchase rate and reduces your reliance on marketplaces that can change their commission fees anytime.