As the end of the year approaches, businesses are pondering what economic challenges and opportunities lie ahead in 2019. Predicting the future can be a tricky business, but planning ahead is what sets successful businesses apart.
Although, we don’t have a crystal ball, there are still a few things that businesses can expect in the year ahead:
- New tax laws. New regulations included in the late 2017 overhaul of the federal tax code go into effect in 2019. Noteworthy changes to the code include a markedly lower corporate tax rate (20 percent) and a new allowable deduction of 20 percent on pass-through taxable income. The new tax law also allows for deductions of up to $1 million for purchases of new equipment and property.
- Interest rates. The Federal Reserve is expected to continue raising interest rates. This means consumer loans and capital improvement loans will get more expensive. The new tax code, however, retained a provision allowing small businesses to write off some loan interest.
- Wage pressures. The unemployment rate is expected to remain below 4 percent, leading to long-awaited wage increases. This could increase prices and push inflation above 2 percent.
Whatever happens in the year ahead, Numbers House will be here to provide essential business back-office services for companies and entrepreneurs.
We Can Help
The bottom line for your bottom line? For now, it looks like 2019 will be another great year for the U.S. economy. That means it’s still a great time to start a business. If you need help, contact Numbers House to learn about the full range of small business services we offer to help you get started reeling in some profits in a strong economy. Call us at (865) 294-7300 or email us at email@example.com.