How Does the ERTC Enable Smarter Business Scaling?

January 16, 2024
Dayes Law Firm

The Employee Retention Tax Credit is far more than a simple tax break. Businesses and tax-exempt organizations that qualify have a wonderful opportunity to use the cash to expand their businesses. If you think you fall under the category of eligible employers, read on to learn about the benefits of the ERTC for smarter business scaling, then contact our team at Dayes Law Firm if you have any questions about filing your claim. 

What Do ERTC Claims Offer?

If your business was negatively impacted during the COVID-19 pandemic, but you continued paying wages to your employees, you may be eligible for ERTC benefits. With the ERTC, you can claim tax credits on a percentage of up to $10,000 per employee per quarter for 2021 claims or $7,000 per employee per quarter for 2020 claims. To qualify, you must have had a significant decline in gross receipts or a government-ordered shutdown during the period while paying wages to your employees. 

Scaling Your Business With Your ERTC Cash

You can use your ERTC benefits for many purposes, though smart investing can launch your business into the future. Here are a few ways to scale your business using the newfound cash flow.  

Invest In Your Product

First, you could invest in refining the product or service your business offers. If your customers frequently complain about certain issues, you could try to resolve those bugs for a better version. If you often find comments and requests for new color selections or features, you could use the benefits of the ERTC to begin offering limited releases that respond to consumer desire and spike demand. 

You may simply have issues keeping your product in stock. Rather than investing in a new product, you could invest in producing more of what you’re already doing right.

Expand to New Locations

One basic way you can scale your business is by growing in a physical sense. You can purchase additional real estate across your town or even the nation to spread your brand name and reach more consumers. Whether you want to start with one new location or five, expansion is the first step to launching your small business into the corporate sphere. 

You may also invest in real estate to expand internal operations. You could use the space for production or office purposes.

Eliminate Debt

If your business has any debt, now may be the perfect time to eliminate it. Operating debt-free is a great way to reduce your risks while appealing to future investors.

Buy Out Your Competition

Increased funds offer the opportunity to acquire another business. You could purchase businesses with full foundations that align with your own, so you don’t need to start from scratch when expanding your reach. You could also consider buying out your competition to attract more of your target audience to your brand. 

Invest in Employees

Your team members played a critical role in helping you qualify for the ERTC. Investing in your team ensures your business stays afloat as you scale. 

You could invest in your team by offering them increased pay, bonuses, new benefits, and more. These rewards can boost employee retention, so you don’t need to waste future funds on poor efficiency or staff training.

Need Help Maximizing Your ERTC Claim?

To claim the ERTC, you must file an amended quarterly federal tax return. If you want to maximize your benefits of the ERTC or have questions regarding filing, contact Dayes Law Firm at (800) 503-2000 to request more information. Our Employee Retention Tax Credit team can tell you whether or not you qualify and help you claim this valuable credit.