When it comes to the effectiveness of corporate tax cuts to stimulate the U.S. economy as a whole, different roofers have different opinions.
Trump’s possible tax cuts are definitely a positive for most businesses in the short-term if nothing else, and could be an important component of your business strategy for 2018 and beyond. But what about the big picture? The real question is, how much of a net positive are these tax cuts when combined with other forces at work, and what can you expect 2018 to be like for your roofing business overall?
We can’t predict what will happen with certainty, but here are a few things to consider.
What These Possible Corporate Tax Reforms Call For
This is a tax cut to business owners categorized as LLCs (Limited Liability Companies), partnerships, and sole proprietorships. Since most roofers are one of those types of businesses, currently the rate looks to be going from 35% (what it is now) to 20%. At the time of this writing, none of that is set in stone, but it is pretty safe to say these corporate tax cuts are going forward.
That could result in a lot more money for those businesses to hire and grow with.
How Roofers Can Best Use Possible Tax Savings in 2018
We of course can’t give advice for how you should invest your roofing company’s resources, but it is important to keep a few things in mind when it comes to these possible upcoming tax savings.
- For example, I don’t need to tell most roofing businesses that hiring has become more difficult in the past few years, with fewer workers entering this field. Roofing employers are struggling to find good help, and that means many will need to offer higher wages or make other changes to attract quality workers.
- On a similar note, your existing or future roofing team will probably be informed on these tax cuts and may expect some of those savings to be passed along to them in the form of wage increases.
- Finally, other legislation may create higher costs for your business in 2018, especially if you work with solar. As one example, at the time of this writing, Trump’s possible tariff on international solar suppliers could affect your sourcing costs. It’s difficult to say which will outweigh the other, though I would assume that for most roofers the solar tariff will not exceed the new corporate tax savings. The real takeaway here is, as you well know, your roofing company has always faced opposing financial forces in the past and that’s likely to continue in 2018 even if details shift. It’s probably wise to not see tax cuts as a huge net surplus when placed in the full context of everything affecting your roofing business.
More Ways to Save in 2018
Taking a big-picture approach has always seemed like the best way forward to us. We built our JobNimbus software with the big picture in mind–and that’s unusual given that this is a tool which manages the micro-details of your workflows, communication, ordering, reporting, payments, and all other goings-on of a roofing business!
It’s about understanding the net or total effect of everything as a whole. We’ve systemized that, we’ve built a tool around that, and we’re constantly improving it based on the best practices and outcomes of our most successful users and clients.
So, if you’re looking for more ways to tip that big picture in your favor for 2018, sign up for JobNimbus today. Jump in with the free trial, and when you love it, you can upgrade without skipping a beat. Reach out to us with any questions or concerns. Our Support team is the best in the business and ready to help.