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26 11, 2018

My Small Business has been Hacked, Now What?

By |2018-10-31T17:40:17+00:00November 26th, 2018|Uncategorized|0 Comments

Business tasks are increasingly being fulfilled over the internet, and it doesn’t seem like people are going to turn back to the traditional pen and paper any time soon. As the world continues to rely on online and mobile technology, hackers are upping their game as well. Within the last few decades, hackers have been progressively turning to small businesses as their victims, and it doesn’t seem like they’ll be letting up. When companies are hacked, small business owners risk undergoing permanent financial damages, tainting the company’s reputation, and worst-case scenario, going out of business. What Can I Do Now? Business owners should always take steps to prevent their company from getting hacked. But hacking incidents do happen. If your business has been hacked, here’s what you should do: Limit the damage: If you suspect that you’ve been hacked, you should immediately reset your passwords. Run an anti-virus program to see what files have been affected and delete what has been corrupted. These actions won’t reverse the damage, but at least you can prevent further hacking for the time being. [...]

12 11, 2018

The Importance of Establishing Business Credit

By |2018-10-31T17:30:49+00:00November 12th, 2018|Uncategorized|0 Comments

Between all the scheduled meetings, sales calls, and client lunches, entrepreneurs have numerous duties to fulfill. With so many daily tasks needed to run a business, establishing good credit may not be on the forefront of your mind. But building good business credit has the potential to produce benefits that will greatly contribute to the future success of your company. Along the same vein as building good personal credit, having notable business credit enables potential lenders to determine if your company has competent money management skills. Essentially, building business credit determines your company’s financial reputation…and if you have a good one, you could obtain business loans, finance a company car, or purchase equipment, among other benefits listed below: Benefits of Building Business Credit: Credibility and Financing – Suppliers and lenders will gauge the reliability of your business financing through business credit. With good business credit, lenders will offer more favorable terms to purchase on credit. Business Partners – Your company’s credit history will also influence the potentiality of securing business partners. Unlike a personal credit, other companies and outside parties [...]

29 10, 2018

Is Your Technology a Gateway for Identity Theft?

By |2018-10-15T17:10:32+00:00October 29th, 2018|Uncategorized|0 Comments

As an entrepreneur, preventing identity theft should remain a top concern, regardless of your business size. The occurrence of business identity theft is all too common. And as technology continues to advance, identity theft continues to evolve with it. Although our technological devices create efficiency and ease in our lives, we should be wary about the increasing ways identity theft can occur through them. Neglecting the security of your work phone, computer, or other work-related digital devices can result in major financial disasters for your business. How can I protect my business from identity theft? Fortunately, there are ways you can reduce the risks of identity theft without sacrificing your technology. The following points are ways you can prevent identity theft from happening: Be mindful of Wi-Fi hotspots: While it may be tempting to take care of finances at the local coffee shop, it is generally a better idea to avoid public Wi-Fi when conducting financial matters. Even if the public hotspot requires a password, it is always safer to work from a secure network that you are in control [...]

15 10, 2018

A Quick Guide to Invoices

By |2018-10-15T16:43:40+00:00October 15th, 2018|Uncategorized|0 Comments

As a business, understanding the components that go into creating an invoice is essential in staying organized and keeping your finances in check. An invoice is, essentially, a bill… with some minor differences. The purpose of an invoice is to keep track of the expenses that your client or customer owes you for your products or services. It indicates the number of things sold as well as the amount of money the buyer owes in total. The difference between an invoice and a bill is that a bill is usually paid immediately whereas an invoice can be paid in a set amount of time. How do I create an invoice? While the design and structure of invoices may vary from business to business, the main components are still the same. Here are the essential elements needed to create an invoice: Company information: The name, address, email, and phone number of you and your client’s business should be included on either the top or bottom portion of the invoice. Header: In the header, identify the document as an invoice to clearly [...]

3 10, 2018

Driving and Business – What are my options to deduct these expenses?

By |2018-10-03T16:42:00+00:00October 3rd, 2018|Uncategorized|0 Comments

Are you a small business owner who drives a lot for business? If so, do you know that you can deduct mileage or driving expenses?      When calculate this expense, decide if you would rather track mileage or track expenses.  If you want to track straight miles, you can apply any miles driven for business-related purposes. Business-related travel includes client meetings, charity work, etc.  Accuracy is key when accounting for mileage and, while it may be time consuming, it is definitely worth it. During the 2018 tax year, the IRS mileage rate is $0.545 per mile!  When you track mileage, keep a detailed log; include the date of travel, start and end time, mileage at the start and end of travel, the beginning and ending odometer readings, and the purpose of your business travel. Detailed, right? Don’t worry too much because QuickBooks offers a feature that allows you to track mileage via their QuickBooks Self Employed app so there’s no need for a paper and pen log any longer!  In addition to the ease of using an app, you are ensured to have all the details in one place in case of an [...]

20 09, 2018

Why do half of all small businesses fail within the first 5 years? Hint: Timing is everything.

By |2018-09-20T20:59:15+00:00September 20th, 2018|Uncategorized|0 Comments

According to the US Small Business Administration half of all new small businesses fail within the first five years and the number one cause of failure is financial mismanagement. Is this because first time entrepreneurs do not understand their cash flow?  Do they spend it all or not know how to make their money work for them? Understanding financial management is complex.  If someone were to ask you if you knew your profit and loss, what would you say? There are many contributing factors to a new company’s failure, however, in our experience, many times, a business fails because of time.  If you are a small business entrepreneur you may be the only person selling your product or service. Does this give you enough time to properly set up and analyze your financial data? To set up your accounting platform properly, to be compliant with IRS standards, and to understand best accounting practices is a time consuming process. Bookkeepers look at cash flow and the bottom line. We look at ways to make your money more efficient and your time [...]

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 [...]