Salem Five Bank believes strongly in giving back to the communities we serve. This past December, we were proud to have contributed in various ways to organizations that support the wellbeing of our area residents. Firstly, we partnered with The Salvation Army and collected over 1,100 toys for children in need throughout the region. Our branches and headquarter offices all participated to make the toy drive a success. We kicked off the effort with Jason Varitek, former catcher of the Boston Red Sox, and had Karen Blake, Magic106.7 afternoon on-air personality, get in on the action. Thanks to our customers and employees who made this a success and helped put smiles on children’s faces this season.

In addition, we turned “Giving Tuesday” into a month-long event – dubbing it #makeadifferencedecember. Throughout December, we surprised area charitable organizations with a visit and a donation from the Salem Five Charitable Foundation. In total, the Foundation awarded $27,500 to eleven different organizations each with a $2,500 year-end surprise. Focusing on nonprofits that provide much needed basic services such as food and other social services – and had not yet received any donation from Salem Five in 2021. Organizations such as the Acord Food Pantry in Hamilton and the Lynn Shelter Association in Lynn are so important – especially as we continue to see lingering effects of food insecurity, homelessness and the need for basic services increase from the pandemic. We were proud to be able to do our part to help these organizations.

Business owners work with their accountants each year on tax planning and reconciliation with the end goal of reducing tax liability. Who wants to pay more taxes, right? However, in reality, it should be a balancing act for a growing business that may have lending needs now or in the future. Accountants’ purview tends to be a bit single-minded and may not adequately position companies for future financing needs. Reducing the amount of reported income year after year may not give the proper financial picture of your company – and, in turn, reduce your access (or the lending level) to much-needed capital. Capital that a financially stable, growing company may deserve and need to continue to thrive and compete.

Consider working with your accountant to achieve a balance. Reduce tax liability -- of course, but have an eye toward adequately representing reported income – which will greater position you to access bank funds such as working capital lines of credit, real estate mortgages and term loans for growing needs such as equipment or expansions. Reach out to one of our business bankers to learn more so you’re better poised for success.