Expense Administration Fintech Divvy Confirms it Helps Small Companies with Higher Monetary Instruments and Funds Controls

Divvy, a contemporary fee and expense administration platform for companies, which notably secured $165 million by its Collection D funding spherical, has revealed a weblog submit that appears into how small companies can settle their tax funds.

Divvy confirms in its weblog submit that the US InternaI Income Service (IRS) has prolonged the tax deadline for this 12 months from April 15 to Could 17, 2021 for all people. This extension applies to self-employed staff however not small companies, Divvy’s weblog clarified.

The submit added:

“The 2021 tax season is upon us, however for small companies it looks as if each season is tax season. Small companies have common intervals of tax filings and funds that people and bigger firms don’t face. Slightly, small companies face a tax 12 months stuffed with fee deadlines. It’s necessary to file these funds accurately and on time, in any other case late or incorrect tax funds can incur hefty charges.”

At Divvy, the corporate’s mission is to help SMEs with managing their funds extra successfully in order that they’ll improve the effectivity of their operations.

Whereas sharing an in depth checklist of the totally different tax submitting deadlines, Divvy clarifies that solely sure companies are “required to file every tax sort.”

The corporate’s weblog submit confirms that the next are due April 15, June 15, September 15, January 15 through the 2021 tax 12 months.

Divvy’s weblog notes:

“As a small enterprise proprietor, you’re answerable for managing your personal taxes (and people of any workers you’ve employed). Taxes could be complicated, and there’s a sliding scale for the quantities you’ll owe, so to make it simpler the IRS has developed a pay-as-you-go estimated tax system. Companies and people compute how a lot they’re more likely to owe in company earnings tax, employment, and different relevant taxes after which divide them into quarterly estimates that are met all year long.”

As talked about in Divvy’s weblog submit, the taxes paid by small companies quarterly could embrace the next necessities:

• Revenue tax funds: pay-as-you-go on any earnings generated, together with federal earnings tax and state (this may fluctuate relying in your specific State necessities)
• Gross sales tax funds: a State tax utilized to items bought (not IRS)
• Employment tax funds: Social Safety & Medicaid that’s paid on behalf of staff
• Self-employment tax funds: Social Safety & Medicaid paid by self-employed professionals
• Excise tax funds: specialised taxes for numerous industries (as an example, environmental, playing, amongst others)
• Franchise tax: required of corporations with “a nexus in a selected state”

Divvy explains that these estimated earnings tax funds should be made on the 15th after every quarter involves an finish: April 15, June 15, September 15, January 15. Divvy’s weblog provides that “at your annual earnings tax submitting it will likely be decided in case you’ve paid the suitable quantity in estimated taxes all year long.”

(Be aware: for an in depth breakdown of enterprise tax submitting necessities, examine right here.)

Divvy goals to help small companies with the suitable monetary instruments and funds controls. As coated final month, Divvy revealed that digital playing cards have gotten widely-adopted.

Divvy famous that as companies have began shifting away from legacy spending strategies resembling ACH or paper checks, the digital bank card is being more and more used to settle transactions.

The corporate identified that at the start of final 12 months, bodily playing cards had been nonetheless “favored” or most popular for almost all of economic transactions. However when COVID-19 hit in March 2020, digital card utilization surged to round 50% of enterprise bank card transactions, Divvy famous. Since that point, digital playing cards have “maintained the bulk utilization,” Divvy claims.

As reported in January 2021, there have been no less than 692 finance professionals partnered with Divvy to supply “best-in-class” software program to their shoppers. There have been additionally 127 clients featured on Divvy billboards. The corporate claims that there’s now lower than “1 minute common response time by Divvy buyer help.”

Divvy claims that it processed 4,208 PPP mortgage purposes, as of January 2021, for small companies. Whereas sharing different updates earlier this 12 months, Divvy famous that there have been 292,712+ minutes “spent studying Divvy Analysis and small enterprise guides” and  1,410 clients “used Divvy’s self-guided onboarding.”