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30 08, 2018

Why Your Nonprofit Needs an Accountant

By |2018-08-30T16:11:20+00:00August 30th, 2018|Uncategorized|0 Comments

When done right, a nonprofit has the potential to provide services that educate the public, enrich lives, and bring communities together to leave a lasting contribution. But in order to sustain an impact on the community, nonprofits must have the financial stability to continue providing these charitable services. A well-functioning nonprofit understands that it is equally important to properly manage finances and operate its charitable activities.  Accounting services can be handled from the inside, but as your nonprofit expands and aims to thrive in the long run, outsourcing the right accountant can not only save you time and money, but also provide guidance to ensure your organization’s lasting effectiveness and sustainability.   What is different about nonprofit accounting?  Nonprofit accounting is different than traditional business accounting. A professional accountant knows the ins and outs of the fiscal responsibilities involved in running a nonprofit and can make financial decisions based on the best interests of your organization while complying with the IRS and state laws to avoid any sort of fraudulent behavior.   Why can’t I just use an accounting app?  While an accounting app can provide many useful financial services, it can’t give you the same foresight and guidance the same way an accountant can. Hiring an accountant can provide in depth strategies to save you money. It is also a great source of networking – your accountant can [...]

22 08, 2018

What is the Difference Between Cost of Goods Sold and Operational Expenses?

By |2018-08-22T17:11:29+00:00August 22nd, 2018|Uncategorized|0 Comments

There are some clear differences between a business’ operational expenses and its Cost of Goods Sold (COGS). When we first review a client’s records, and specifically its Income Statement, we often encounter items that should be listed as COGS but are actually entered as expenses. The Income Statement distinguishes COGS and Expenses in separate sections and the delineation of these costs impacts the overall gross profit of a company.  Gross profit is directly impacted by COGS and then operational expenses help determine your net income. So, what’s the difference? COGS are costs that are directly connected to the production of the good or service your company offers.  Examples of COGS may include the materials needed to produce your good, items purchased with the intent to resell, or labor costs associated with the product or service. Operating expenses are directly connected to the money needed to help your business run or operate. Examples of operating expenses may include rent, office supplies, or marketing expenditures. Why is it important to understand the difference? When looking at the financial health of a business, [...]

8 08, 2018

Getting Started with QuickBooks

By |2018-08-08T22:08:25+00:00August 8th, 2018|Uncategorized|0 Comments

Of all the numerous tasks required to maintain a business, keeping financial records can be one of the most time consuming, but also one of the most important! While there is a plethora of accounting software available on the internet, we find QuickBooks to be the most accommodating when it comes to running small to mid-sized businesses. Concise and easy to understand, QuickBooks caters to the average person who lacks a prior background in bookkeeping. With the software’s easy customization, QuickBooks is tailored to serve the unique needs of your business.   Bakersmith Bookkeeping Group provides QuickBooks set up, training, and implementation for small businesses seeking to get started with the software. With our experienced team of bookkeepers, we can help you with:  Organization – Keep all your current QuickBooks software files in one place.  Financial data – Organize and manage your financial data inside your current QuickBooks file so that you can report accurately.  Tracking dollars – We help make sense of the numbers within your QuickBooks so you can track every dollar that comes through.  Generating reports – Keep track of the financial health of your business to stay updated with where your business is going.  Income, sales, and payroll – Manage your income, sales, and payroll for the entire business.  30,000 ft view – Maximize your best chances of success from [...]

1 08, 2018

Law Firm Accounting

By |2018-08-02T16:17:22+00:00August 1st, 2018|Uncategorized|0 Comments

As an attorney, it is essential to have a complete, comprehensive understanding of the financial processes and requirements surrounding trust account management. By understanding the ins and outs of law firm accounting, you can confidently uphold standards of good faith to ensure your clients transparency. But with so much involved in running a law firm, maintaining clientele accounts can be taxing. Delegating the accounting processes to bookkeepers specialized in law firms relieves the demands of regulating finances and trust accounts. Why should I hire a legal accountant? By assigning the accounting tasks to an experienced legal accountant, you can: Sustain max revenue – an accountant ensures finances are properly managed to prevent the law firm from losing money to their client or other service providers. Detect any questionable transactions and errors to prevent disastrous financial consequences or non-compliance. Maintain accuracy to clearly distinguish revenue from income. Preserve all records of clientele trust fund accounts, including bank statements, cancelled checks and receipts in order to keep your clients informed at all times. Build a good reputation for running a compliant and [...]

27 07, 2018

Accrual vs. Cash: Which Accounting Method Does Your Business Need?

By |2018-08-02T16:15:56+00:00July 27th, 2018|Uncategorized|0 Comments

Whether your company is a newly emerged startup or a well-seasoned business, it is important to consider the implications of cash and accrual accounting to find the accounting method that suits your business. Each method has its benefits and drawbacks. Understanding the basics can help you apply the right accounting method to bring the best financial results for your company. What is Accrual Accounting? Essentially, to “accrue” means to build up overtime. Synonymously, “accrual” accounting means to record revenues and expenses that will occur in the future. Here’s a breakdown of the accrual accounting method: Accrual Accounting Adds up all revenues earned, regardless if they have been received Records all expenses incurred that have yet to be paid Gives a more accurate month-to-month assessment, and therefore provides a better indication of the company’s overall financial health and future Risks neglecting current cash-flow, which may lead to an overstatement of the cash you actually have What is Cash Accounting? On the other hand, cash accounting is a direct measurement of the resources your currently have at your disposal. Here’s a breakdown [...]

25 07, 2018

Bookkeeping Basics: Retail Banking

By |2018-07-25T19:46:04+00:00July 25th, 2018|Bookkeeping Basics, Uncategorized|0 Comments

What is Retail Banking? Retail banks are the typical household brand names that you know (Wells Fargo, JPMorgan Chase, Bank of America, etc.). Retail banks work with consumers and offer basic services like checking and savings accounts, small business loans, mortgages, and much more. These banks can help fund big purchases as well as to help make day to day spending easier for the general consumer.  Retail banks also support business growth by offering lines of credit. How does Retail Banking support my business? Basic Accounts: Offer checking accounts with a debit card to easily make daily purchases and/or payments and savings accounts that accrue interest over time. Certificates of Deposit (CDs): CDs pay more interest than savings accounts, but the money put into these certificates must remain untouched for whatever time restraint you put on it. If money is withdrawn before then you will receive a penalty. Lines of Credit with Rewards Programs: Rewards programs can help alleviate costs for travel and dining expenses. What is the benefit? Retail Banking offers services that can help keep a small business [...]

25 07, 2018

Bookkeeping Basics: Keeping Duplicate Checks

By |2018-07-25T19:46:51+00:00July 25th, 2018|Bookkeeping Basics, Uncategorized|0 Comments

Believe it or not, physical paper checks continue to be important in the world of finances, despite the ability to do most things digitally, like payroll, money transfers, vendor payments, and more. When using paper checks you have the option to order duplicate checks, which can help you keep detailed records of every payment you make. Today we’re mulling over the pros and cons of duplicate checks along with alternative options for keeping record of your finances! How do duplicate checks work? Each and every paper check in your checkbook is followed by a thin carbon copy of the check in front of it. Both the original and the copy have all the same information for your reference, including the check number. Each time you write on an original check, the written information (amount, reason, date, etc.) is transferred onto the carbon copy. You can tear out the original for the addressee and keep the copy in your checkbook for your records. While this is a simple process, there are both pros and cons to duplicate checks. Pros: Readily available [...]

22 06, 2018

When do you need to hire an accountant or CFP?

By |2018-07-06T05:47:12+00:00June 22nd, 2018|Uncategorized|0 Comments

When looking at your finances, whether for personal or professional needs, it is easy to become overwhelmed by the required paperwork, changing tax laws, and multiple deadlines. If you have large investments, own a company, or manage multiple assets it can be difficult to complete your taxes using simple tax software. Typically, getting expert advice is important. For these more complex accounting needs, it is important to be aware of all the laws and regulations tied to your finances. An accountant can help relieve this workload, offer professional advice, and most importantly, provide peace of mind. Financial planners are also another great resource to help identify and outline long-term financial goals. When you need a team to support your overall financial planning, sometimes it is hard to know where to start, figure out what you need exactly, and who to hire. This breakdown can help you decide: Consider hiring an accountant when… • You Own Your Own Business • Your Annual Income is or Exceeds $200K • You Own Real Estate or Rental Properties • Anticipate Receiving a Large Capital [...]

11 06, 2018

Tax Reform: Meal & Entertainment Changes

By |2018-07-06T04:46:07+00:00June 11th, 2018|Uncategorized|0 Comments

  As many of you are aware, Washington has made important changes to tax law. The new tax reform impacts how businesses and individuals are taxed, including limitations on meal and entertainment deductions for businesses. Businesses often rely on entertainment and meals as a way to build rapport with loyal clients and cultivate relationships with new clients. Many expenses in this category may now be considered non-deductible or have a lower rate of deductibility depending on the specified criteria. For example, events like holiday parties, transportation to and from business meetings, and occasional employee meals are 100% deductible. Other events, with different specific criteria, is either 50% deductible or non-deductible. Businesses must account for transactions in the meals and entertainment category in order to apply appropriate limitations. Tax reform is a fluid and dynamic process and due diligence is required since what you can and cannot deduct is critical to your bottom line. For more information about meal and entertainment charges under this tax reform – comparing the old rules to the new rules – click here. Bakersmith Bookkeeping Group [...]

7 06, 2018

The Benefits of Direct Deposit

By |2018-07-06T04:49:07+00:00June 7th, 2018|Uncategorized|0 Comments

  In today’s automated age we expect everything to have an almost immediate response rate, from the countless coffees we order via mobile to the posts we share on our social media accounts, we expect immediate results. Sending and receiving funds is not excluded from this common expectation and because of this, receiving physical checks on pay day seems very dated. Electronic payment systems, like direct deposit, have resolved this and can provide immediate satisfaction to employees on pay day! Before employees hit snooze on the 6am wake up call, pay day funds have been deposited. In addition to employee satisfaction, what are other benefits of direct deposit? Keep on reading to find out: Benefits: • No Mail or Paper (Allows companies to save cost on printing and mailing checks and there is no risk of delayed arrival) • Electronic Records (Automatic history of transactions) • Security (No risk of getting a check stolen or lost) • Faster Pay What other types of payments can be received via Direct Deposit? • Payment to Independent Contractors (Fees to transfer funds to [...]