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11 09, 2020

New Business Financial Checklist: Essential Tasks to Maintain Daily, Monthly, and Annually.

By |2020-09-09T22:14:50+00:00September 11th, 2020|Bookkeeping Basics, Business Tips, Finance Tips, Small Business|0 Comments

Starting your new business can be exciting and stressful at the same time. There is a lot that goes into business finances, so maintaining those items for the first time can quickly become overwhelming. We’ve highlighted a few essential tasks to keep you on track and ensure your company’s success throughout its first year and every year after.  Daily   Check Cash Position  Start your day by routinely checking the amount of cash you have on hand. We recommend you repeat this task weekly and monthly to estimate how much money you will need in the future.    Weekly   Organize and File Receipts  Organizing your receipts, invoices, and cash payments every week will help you find information easily come tax time. While Excel can be an excellent option to keep track of all expenses, it can time consuming and confusing. Instead, you can find a bookkeeping team to help manage that information for you.  Review Unpaid Bills From Vendors  Start by identifying any unpaid vendors. If you don’t already have an “unpaid vendor” folder, this would be a good time to do so. [...]

20 08, 2020

How Can You Support Small Businesses During COVID-19

By |2020-07-30T23:38:31+00:00August 20th, 2020|Bookkeeping Basics, Business Tips, COVID-19, Finance Tips, Small Business|0 Comments

The coronavirus pandemic has disrupted every aspects of normal life. From school structure to to human interaction to business operations. One area that feels this disruption deeply is the small business sector. Across the country, small businesses are struggling to keep doors open. They are innovating and rapidly changing their business model in order to continue servicing clients and generate revenue.  According to the US Small Business Administration’s Office Advocacy, small businesses generate 44% of U.S. economic activity. To support this important sector of the economy, here are suggestions for ways to help:  Gift cards and take out are a great help. The food and beverage industry is greatly impacted. In some areas, only outdoor dining and/or take out options are available. This greatly diminishes the money generated in an already low margin industry. Consider purchasing gift cards or ordering from your favorite neighborhood eatery.   Shop Local. Many local retailers have pivoted to either build a more robust online store or offer products online for the first time.  When you are buying the next round of home goods, staples, groceries, and more, consider purchasing [...]

30 07, 2020

Staying Afloat When Your Cash Flow is Impacted During Times of Crisis

By |2020-07-30T16:25:18+00:00July 30th, 2020|Bookkeeping Basics, Business Tips, Finance Tips, Small Business, Uncategorized|0 Comments

When our community undergoes a period of economic uncertainty, one of the most unsettling financial experiences is to question your stream of cash flow. Business owners and employees alike risk financial stability and loss of income when the economy takes a sudden downturn. Although we cannot stop a recession from happening, here are a few tips to curb the impact of a sudden crisis on your cash flow.  Get a bird’s eye view of your cash flow. When you have a good understanding of your monthly cash flow, you can better forecast your financial situation in the future. Take a look at your statements and identify profits, bills, payroll, inventory, debt, etc. to understand which expenses are fixed, and which expenses can be prevented. Consider cutting back on nonessential inventory for the time being.   Offer discounts for pre-paid services. This is a good way to ensure timely income, or to encourage clients and customers to pay early. Reevaluate your invoicing habits. Avoid sending out invoices at the end of the month if you want your cash to transfer into your bank account sooner. [...]

23 07, 2020

How Do I Establish A Reimbursement Policy In My Company?

By |2020-07-23T21:36:23+00:00July 23rd, 2020|Bookkeeping Basics, Business Tips, Finance Tips, Small Business, Uncategorized|0 Comments

In some companies, employees are able to purchase things on behalf of that company, but may not have access to a corporate credit card or payment account. In other instances, an employee may incur costs, such as travel expenditures, that need to be reimbursed. Essentially, reimbursed expenses are an employee’s out of pocket expenses that are compensated by a company. As companies grow, there is typically more of a prevalence for these type of expenses. How can you make them manageable and create guidelines understood company-wide? It is important to set up a policy ahead of time so that employees understand what is eligible to be claimed as an expense and how much is acceptable. Beyond travel, gas, or food, you may also offer continuing education whereas college courses can be reimbursed. Outlining a policy upfront will help you clearly define categories and establish a process internally. This will be helpful as your business grows and can control employees from surprising you with unplanned costs. When creating a policy, consider these points: Create categories to define spending is appropriate Create [...]

7 06, 2020

Finance Tips for Small Business Owners

By |2020-05-04T22:14:50+00:00June 7th, 2020|Bookkeeping Basics, Finance Tips, Small Business, Technology|0 Comments

Finances will always be an important factor of any business, regardless of the type of business you are running. While your business will inevitably drive in income, there are other elements that can help you cut costs, save money, and set your company up in a position to maintain financial stability and profitability in the long run. Here are a few tips that will put your company in a good financial position. Know Your Sales Cycles – Depending on your industry, your business can experience seasonal cash flow. During certain times of the year, your business may experience higher financial periods. For example, retail shops may experience periods of high sales during the holidays when people are shopping for gifts, versus slower months such as the spring. Avoid Procrastination – Procrastination can build up. This is especially true when dealing with finances. There is a greater potential for forgetfulness and disorganization if you leave too much time in between invoices. Evaluate Expenses – Identify factors that are fixed expenses and keep them as low as possible. Although you want to [...]

30 03, 2020

CARES Act Impact on Small Businesses

By |2020-03-30T20:59:13+00:00March 30th, 2020|Bookkeeping Basics, Business Tips, Finance Tips, Small Business|0 Comments

The CARES Act passed late Friday in response to COVID-19 and its impact on the current business environment and the economy. We will continue to gather information and share resources to help all businesses weather the effects from this pandemic. The CARES Act is a $2.2 trillion bill that provides, among other things, funding to small businesses, helps secure payroll and jobs, and offers needed benefits.  This not only includes benefits to business owners but also to independent contractors. Important things to understand about CARES Act and small businesses: $349 million of the $2.2 trillion is allocated to the Small Business Administration to guarantee loans to small businesses Businesses with 500 employees or fewer are eligible for these funds Self-employed and independent contractors are also eligible There is no personal guarantee required The maximum amount you can take is equal to 2.5 times your average payroll costs For clients, contact us if you need specific information about your payroll costs for the past year. Apply through banks and credit unions. Working with your business banker may be a good place [...]

7 03, 2020

Reasons to Hire a Bookkeeper

By |2020-02-28T19:40:25+00:00March 7th, 2020|Bookkeeping Basics, Small Business|0 Comments

Launching a business requires a lot of initial set up – not to mention money. Many motivated entrepreneurs have the ambition to take on the majority of business tasks. Although handling the bulk of business tasks can help you cut corners and save money in the beginning, it’s not a sustainable way to run a business in the long haul. Here are a few reasons why you should consider hiring a bookkeeper to handle your finances. Focus on the big-picture needs of your business As the founder of your business, you know the core needs of your business better than anyone else. This means you have a bigger-picture understanding of your business, giving you the advantage to position your business in a way that will grow. Outsourcing your bookkeeping means you have more time to spend on big picture tasks, including brainstorming strategies, prospecting areas of potential growth, and developing a foresight for future trends. Create a work-life balance Don’t expend your time on tasks that can be done by your bookkeeper. As your business progresses, you will come to [...]

1 03, 2020

Tax Season Has Arrived, Are You Ready?

By |2020-02-28T19:33:23+00:00March 1st, 2020|Bookkeeping Basics, Small Business, Tax Deadlines|0 Comments

Filing your taxes doesn’t have to be a stressful affair. Here are a few ways you can keep organized throughout the year before presenting your documents to your tax preparer (plus, they’ll thank you for it). Keep all Your Receipts Take a picture of your receipts with your smartphone or scan them – just make sure that you are saving your receipts! The IRS can audit you up to six years back so it’s important that you save a history of purchases just in case. Chances are, you likely won’t remember why you bought that printer from five years ago, so we recommend you write notes on each receipt explaining the business nature of the purchase. Sort and Categorize Financial Documents You’ll also need to provide other documents like income, records of bank statements, canceled checks and paid bills. Once you have all the documents gathered, divide them into separate categories, such as home-office expenses, utilities, office supplies, and charitable contributions. Having these items organized beforehand will make it much easier for your tax preparer to calculate totals. Find a [...]

12 02, 2020

Business Licenses and Permits

By |2020-02-03T21:17:14+00:00February 12th, 2020|Bookkeeping Basics, Small Business|0 Comments

From naming your business to brainstorming your branding, starting a new business is an exciting venture. But before you get swept away in the entrepreneurial novelty, it is important to consider the logistical elements to your business, such as business licenses and permits. Addressing your licenses and permits earlier in the beginning stages of development will help you get started strong. Here are a few different permits to consider what starting up your business. Environmental permit: In order to control for air and water pollution, many cities require this permit. If you produce anything that involves producing gases, requires burning materials, or may dispose waste through sewers and waterways, check to see what regulation may apply to your business. Health department permits: Restaurants or other food related business selling to customers or retailers will need to be in compliance with health department permits. Sign permit: As exciting as it is to get a new sign for your business, check to see if there are any size or material regulations for store signs before you install one. Make sure to get [...]

5 02, 2020

Organizing Your Chart of Accounts

By |2020-02-03T21:14:06+00:00February 5th, 2020|Bookkeeping Basics, Small Business|0 Comments

Every successful business owner understands the importance of staying organized, whether it’s having a system of operations or organizational system for your data. When it comes to your company’s finances, staying organized begins with understanding your chart of accounts. There are four main sections that comprise your chart of accounts: assets, liabilities, income, and expenses. While you want to keep your assets and income higher than your liabilities and expenses, your liabilities and expenses are not always a negative thing. Although these accounts can be a temporary cost, they can also be seen as a long-term investment in your business. The following points further describe your chart of accounts. Assets – Assets include items or anything your own that has value to your company. This can include your company’s goods, office supplies, inventory, or other valuables. Other asset accounts will include your accounts receivable and notes receivable. This refers to the amount of money that others owe you for your goods or services. Liabilities – Bank loans, rental space, income tax payments, payroll taxes, and bills are considered to be [...]

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