BusinessConnection

Exclusively for Tri Counties Bank Corporate and Business Clients

VOL. 16, ISSUE 2

Service With Solutions™

24-hour banking (800) 922-8742 TriCountiesBank.com

Going solar is more than just helping the environment, it is now an affordable project to reduce your energy bills, gain self-reliance and create ongoing cost savings for the future.

The decision about how to finance your solar power system depends on your particular financial goals. The main practical distinction between buying and leasing a solar system is in ownership.

This choice impacts the cost, maintenance, terms, financial offsets and return on investment of your solar panel system.

HOW TO DECIDEPurchasing a solar panel system is your best option when you:

Want to maximize the financial rewards of installing a solar panel system, rather than solely benefitting from the system’s environmental advantages; Are eligible to reduce your federal and state tax liability through the federal investment tax credit; Are a business, and can realize tax benefits by treating the solar panel system as a depreciable asset; and/or Want to increase the market value of your home or business by installing a solar panel system.

A solar lease is your best option when you:

Are primarily interested in using electricity generated from renewable resources, rather than maximizing the financial benefits of installing a solar panel system; Want to avoid the responsibility of maintenance or repairs for a solar panel system;

Should You Buy or Lease Your Solar Panels?

Are ineligible for federal or state investment tax credits from an investment in a solar panel system; and/or Do not want to wait until the following year to receive the financial benefits of tax credits.

Costs to purchase and install a solar power system have fallen in the past several years and today a 10 kilowatt system can be acquired for about $3 per watt after utility company and government rebates or credits. Your Tri Counties Bank Relationship Officer can help you with your specific business’ needs and guide you to finding the best solution for your solar project.

Business Connection Vol. 16, Issue 2

12 Email Best Practices to Implement Today

Workers send and receive, on average, a whopping 122 emails a day, according to recent estimates.* Another report finds

that employees spend 28 percent of their workweek reading and answering email.** Worse yet, the intended message isn’t always clear because the nonverbal cues we use when talking aren’t there to help us understand text. So, is email helping or hindering your operations?

STREAMLINE YOUR COMPANY’S EMAILImplementing some email best practices may help your employees become more efficient:

Put the takeaway message of your email in the subject line. Be

clear and direct.

Get to the point immediately. Write in short sentences. Focus on

one idea per paragraph. Use bullet points to add emphasis.

Highlight, bold and/or italicize key points and ideas. Realize that

your email is likely to be scanned rather than read thoroughly.

Read email aloud and listen closely for ambiguity before

sending it. Be sure the message you want to convey is clear.

Tailor your message for the recipient. Limit the distribution

list to those who truly need to receive the email.

Add the address last. Many people have had the experience of

accidentally sending an email before it was really ready to go. It’s embarrassing to hit “send” with half-finished thoughts in your email, and reflects poorly on you.

If action is required, spell out who is responsible for taking it. Put

recipients who need to take action in the “To” line, not the “Cc” line.

Double-check attachments. If you refer to them in the body of the

email, they should be attached.

Double-check the addressees on any important or confidential

email. Auto-fill is not your friend here.

Try the three-email rule: After three emails, it’s time to talk.

Create a signature to go at the end of each email you send.

Include your name, job title and contact information.

Reply promptly to email you receive. If you need additional

time, reply that you plan to respond in detail and when.

* Source: The Radicati Group.** Source: McKinsey & Company.1

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lower cost. For example, could you reduce travel expenses by using online video for meetings?

Tip: If you can’t clearly articulate what a particular expense does for your business, consider eliminating it or at least cutting it back.

Re-evaluate suppliers. Shop around periodically to ensure you’re getting the best value — including pricing, terms and service quality.

Tip: Ask suppliers for their best price, especially if your volume has increased. After all, successful companies embrace their suppliers and vendors, viewing them as partners in helping to grow profitability.

STREAMLINE FINANCESTreasury management products and services from Tri Counties Bank can help you manage your business finances with less time and effort, so you can devote your energy to strategizing ways to boost profits. Learn more by visiting www.TriCountiesBank.com.

During the depths of the recession, you — like many company executives — may have felt compelled to sell as much as possible to as many customers as possible. But if you slashed prices on products and services or sold to less desirable customers to do that, it’s time for a new mindset.

Those steps likely narrowed your profit margins, and it’s time to put your focus on finding ways to boost those margins. Try these ideas.

Analyze your gross profit — the difference between your revenues from sales of products and services and your cost of goods sold (the direct expenses associated with the products and services you sell). Then break it down for each product or service you sell, and consider discontinuing the least profitable among them. You’ll free up capacity and resources to do work that is more profitable. Alternately, you could increase prices on the laggards.

Tip: You can apply the same gross margin analysis to different business divisions, product categories, suppliers or customer categories.

Add new high margin products and services. The most profitable sales are generally those made to existing customers. Find out what additional products/services your customers may be interested in purchasing from you.

Tip: An online, self-service version of what they want (if possible) could boost your gross margin and improve your net margin significantly.

Examine your costs. Rank your operating expenses by dollar amount and try to understand how each one contributes to your overall business. Look for ways to accomplish your goals at

Tips to Help Boost Profit Margins

Rank your operating expenses by dollar amount and look for ways to accomplish your goals at lower cost.

This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to this organization are provided for information only. No endorsement is implied. Images may be from ©iStock and/or ©Fotolia. ©2016 Bluespire Marketing | bluespiremarketing.com

As tax laws are constantly being tweaked — or sometimes overhauled — it’s important to stay abreast of developments so you can identify areas where you may be able to find savings and where you may owe more. Here’s a roundup of changes to claim your tax deduction

for business related equipment.

The purchase cost of qualifying business equipment can be depreciated and claimed as a tax deduction over the useful life of the equipment. Alternatively, Section 179 of the Internal Revenue Code allows small businesses to depreciate all of the cost of new or used capital equipment in the same year it was purchased.

Businesses may claim up to $500,000 of qualifying expenses for equipment purchased in 2016 and beyond (the benefit is reduced if the business has capital expenditures of more than $2 million in

Taking Advantage of Section 179 (Business Asset Deduction)

the tax year). Using the Section 179 benefit, if your business is in the 25 percent tax bracket, a $400,000 equipment purchase would create an immediate tax benefit of $100,000.

The Section 179 cap will be indexed to inflation in $10,000 increments in future years. Purchases made using loans or other financial tools are eligible for the tax benefit.

Even if your business equipment purchase isn’t eligible for a Section 179 deduction, you may be able to depreciate 50 percent of the cost of equipment placed in service during 2016 and 2017. This bonus depreciation will fall to 40 percent in 2018 and 30 percent in 2019.

SEEK EXPERT HELPBe sure to consult your tax advisor before taking action that could change your tax status. Talk to a business banker at Tri Counties Bank about how we can help you get ahead.