{"id":6860,"date":"2023-04-25T20:55:54","date_gmt":"2023-04-26T02:55:54","guid":{"rendered":"https:\/\/www.blockadvisors.com\/resource-center\/?p=6860"},"modified":"2024-04-19T08:40:11","modified_gmt":"2024-04-19T14:40:11","slug":"large-event-tax-impacts","status":"publish","type":"post","link":"https:\/\/www.blockadvisors.com\/resource-center\/news-center\/large-event-tax-impacts\/","title":{"rendered":"How to prepare a small business for the tax impacts of large event"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"369\" src=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/NFL-Draft-Tax-SMB-Implications-BARC.png\" alt=\"Kansas City NFL Draft Small Business Implications\" class=\"wp-image-6862\" style=\"width:525px;height:277px\" srcset=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/NFL-Draft-Tax-SMB-Implications-BARC.png 700w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/NFL-Draft-Tax-SMB-Implications-BARC-300x158.png 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">As Kansas City welcomes <a href=\"https:\/\/www.forbes.com\/sites\/jefffedotin\/2023\/04\/10\/the-2023-nfl-draft-should-generate-more-than-100-million-for-kansas-city\/?sh=55c59ceb29f5\" target=\"_blank\" rel=\"noreferrer noopener\">nearly 300,000 people<\/a> for the 2023 NFL Draft, businesses are excitedly gearing up for guests. For K.C. businesses, according to Kathy Nelson, President and CEO of the Kansas City Sports Commission and Foundation, the city will see <a href=\"https:\/\/www.kmbc.com\/article\/kansas-city-council-receives-updated-nfl-draft-new-economic-impact-figures-for-city\/43594935?utm_campaign=snd-autopilot&amp;fbclid=IwAR1wX04cbPt-yLun9y6DSg78dJJ613LpSOoQLvOAusYVxPgspSgGpyp9r3w\" target=\"_blank\" rel=\"noreferrer noopener\">roughly $125 million<\/a> in economic activity, and approximately $10 million in tax revenue. That\u2019s good news. Big events like the NFL Draft generate an influx of revenue for host city businesses, including small business, and with this comes tax implications. But there\u2019s no need to worry as a little preparedness will go a long way.<br><br><strong>What can small businesses do to prepare?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Record keeping is important because business owners will likely be busier, not only when it comes to increased foot traffic, but also with planning and preparation. Keeping track of things as they happen is much easier than trying to remember them after the fact, especially during a large-scale event like this.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We recommend keeping track of receipts and invoices and making sure you have a good system in place for tracking time worked by employees. It\u2019s important to have a plan for how to keep track of expenses that occur during the event, so they aren\u2019t forgotten. Small business owners should consider using an expense tracker or to sign up for a bookkeeping service to help with this, so you are organized when tax time arrives.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-large-article-cta\" class=\"wp-block-create-block-hrb-large-article-cta\" style=\"background-color:#005d1f\"><div class=\"hrb-large-article-cta--image\" style=\"background-image:url(&quot;https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/block-advisors-endorsement-logo-1_white-1.png&quot;);background-size:contain;background-position:center;background-repeat:no-repeat\"><\/div><div class=\"hrb-large-article-cta--copy #ffffff\"><h3 class=\"main-heading\">Get expert bookkeeping<\/h3><p class=\"main-copy\">at 50% lower price than a typical accountant<\/p><div class=\"quick-links-list\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.blockadvisors.com\/small-business-bookkeeping-services\/\">Learn More Today<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What are potential watch outs?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bars and restaurants will likely see increased revenues. This could lead to a larger bill when tax time arrives. If the taxpayer is already making estimated tax payments throughout the year, the increased tax liability will likely result in an increase in their estimated payments. If the taxpayer spreads their estimated payments equally between each quarter, the burden may not be felt as much. If they don\u2019t, the extra amount will be paid during the second quarter for calendar year filers. On the other hand, if the taxpayer wasn\u2019t required to make estimated payments, the increased revenue may result in estimated payments being owed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another issue small business owners may face is an increase in their labor costs, because they either hire more help or pay overtime to handle the increase in foot traffic. There are a couple of tax aspects that come into play, with the first being that the business\u2019 deduction for wages will increase. This would help offset some of the increased revenue, which would in turn lower their tax bill. The other issue is that increased wages will result in increased payroll tax deposits. In some cases, with a food truck or small boutique, the business may have never had employees. In this case, the business will have to make sure they are withholding employment taxes, depositing them on time and filing employment tax returns quarterly, or annually if they qualify.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"ba-testimonial-block wp-block-create-block-hrb-testimonial\" class=\"wp-block-create-block-hrb-testimonial\"><div class=\"author-testimonial\"><p class=\"testimonial\">We looked around at other places and they just didn\u2019t offer what Block Advisors offered \u2013 one-on-one direct connection. Someone dedicated to us specifically to build a relationship with.<\/p><\/div><div class=\"author-image\" style=\"background-image:url(&quot;https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Stephanie-Paredes-Square-Heashot.jpg&quot;);background-size:cover;background-position:center;background-repeat:no-repeat\"><br\/><\/div><div class=\"author-info\"><p class=\"author-name\">Stephanie Paredes, Founder &#8211; <a href=\"https:\/\/www.blockadvisors.com\/resource-center\/news-center\/beyond-boundaries-small-biz-highlight\/\">Beyond Boundaries Consulting<\/a><\/p><p class=\"author-description\">Block Advisors Small Business Tax and Bookkeeping Client<\/p><\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses may also spend a little more money on advertising during this time to capture some of the increased foot traffic in the area. This expense is generally deductible and will help the taxpayer offset some of those increased revenues on their return. Some businesses like restaurants and bars may also increase their inventory in anticipation of increased foot traffic. The cost of the inventory will be deductible come tax time, which again will help to offset some of the revenue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, operations like Airbnb and rideshare operators will likely see an increase in business during this time. Not all the above applies to them, but they will want to make sure they keep track of any increased expenses incurred, because those expenses will help to offset increased revenues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Coming off a Super Bowl victory for our hometown Kansas City Chiefs, the city hosting this national event is particularly special. While the increase in economic activity is something many businesses look forward to, we hope small businesses take the time to prepare for this financial influx and the ways it can affect their operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How can Block Advisors help?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At Block Advisors, we\u2019re available to answer questions from business owners as they prepare and give advice on what to expect when tax time rolls around. We offer <a href=\"https:\/\/www.blockadvisors.com\/small-business-bookkeeping-services\/\">bookkeeping services<\/a> to help ease small business owners\u2019 minds. This way, small business owners won\u2019t have to add accounting for this surge of revenue and expenses on their books to their already long to-do list.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, Block Advisors offers <a href=\"https:\/\/www.blockadvisors.com\/small-business-payroll-services\/\">payroll services<\/a> to help ensure small business owners are accounting for increased labor costs.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\"><div class=\"wp-block-image\">\n<figure class=\"alignleft size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"731\" height=\"1024\" src=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-731x1024.jpg\" alt=\"Jamil Khan H&amp;R Block Chief Strategy and Small Business Officer Block Advisors\" class=\"wp-image-6870\" srcset=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-731x1024.jpg 731w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-214x300.jpg 214w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-768x1075.jpg 768w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-1097x1536.jpg 1097w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-scaled.jpg 1463w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2023\/04\/Jamil-Khan-Headshot-1200x1680.jpg 1200w\" sizes=\"auto, (max-width: 731px) 100vw, 731px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<p class=\"wp-block-paragraph\">Jamil Khan is the Chief Strategy and Small Business Officer for H&amp;R Block, including Block Advisors. In this role, Khan is responsible for helping to identify and lead the company\u2019s strategic development and growth opportunities and generate value for stakeholders as it continues to disrupt the tax preparation industry and expand its services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Khan has more than two decades of experience leading strategy for companies ranging from technology companies to Fortune 100 brands. He has worked on multiple merger and acquisition integrations, defined growth strategies, managed product development and P&amp;Ls, and restructured lagging business units.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He holds an MBA from Harvard Business School and a bachelor\u2019s degree in chemistry from University College London.<\/p>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"436\" src=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-1024x436.jpg\" alt=\"Block Advisors by H&amp;R Block logo\" class=\"wp-image-6406\" style=\"width:256px;height:109px\" srcset=\"https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-1024x436.jpg 1024w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-300x128.jpg 300w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-768x327.jpg 768w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-1600x682.jpg 1600w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-1536x655.jpg 1536w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo-1200x511.jpg 1200w, https:\/\/www.blockadvisors.com\/resource-center\/wp-content\/uploads\/2022\/08\/HRB-Block-Advisors-Logo.jpg 1800w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>As Kansas City welcomes nearly 300,000 people for the 2023 NFL Draft, businesses are excitedly gearing up for guests. For\u2026<\/p>\n","protected":false},"author":1,"featured_media":6862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19,1237,1171],"tags":[1244,1248,1224],"class_list":["post-6860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-center","category-manage-your-business","category-small-business-tax-prep","tag-block-advisors","tag-nfl-draft","tag-small-business-owners"],"acf":[],"yoast_head":"<title>How to prepare a small business for the tax impacts of large event<\/title>\n<meta name=\"description\" content=\"Jamil Khan, Chief Strategy and Small Business Officer, shares how small businesses can prepare for large events and how Block Advisors can help.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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