Owning your own business can be one of the most rewarding journeys you ever start and most people would agree that they want to make a difference- they want to leave behind a legacy. Unfortunately, sometimes your business growth plateaus somewhere between start-up and profit. There is little that is more frustrating than working like crazy and not getting out what you are putting into your business. It’s important to understand that it’s common to invest in the beginning- but…
As a business owner, your days are full of many tasks that help ensure your business stays on track. When you do finally settle down at the end of the day, the last thing you want to do is go over your financials- but even so, it’s critical that you monitor your financial statements because they can help you predict whether your business is on track and profiting or if you are on a downward spiral. Your statements contain information…
Running a small business can be challenging. And financial missteps are mismanagement are some of the biggest hurdles that small enterprises face. According to the Bureau of Labor Statistics, one in five small businesses don’t make it past the first year, and only about one-third are still around at year ten. Adhering to strict accounting best practices is one way to ensure you’re on the right side of those statistics. Good financial management can help prevent the cash flow troubles that…
Did you know that approximately 40% of mid-sized businesses in the US face penalties due to incorrect payroll filing? It’s an important job and one that has to be done correctly the first time. Your payroll can be taken care of by an individual or an in-house team. Alternatively, you can hand the responsibility off to the experts and outsource payroll. External companies that handle all or some of your payroll functions save you time and money. They ensure your…
Year-end tax tips can help save you a lot of headache next tax season. If you struggle with tax filing, you’re not alone. Every year, as many as 33% of Americans file their taxes late. Some just forget, others struggle to get things together in time because they left it to the last minute, and others are scrambling to make sure they have everything they need to keep their bill low. It’s not too late to make sure you have…
What’s the goal of every business? To make a profit, of course! A business can generate more profit by increasing revenue, managing or reducing expenses, and optimizing tax deductions. These are our recommended best and worst practices for monitoring and deducting business expenses: Understanding Business Expenses Expenses are the costs that a company incurs in the process of generating revenue. Importantly, businesses can take properly recorded tax deductions on their income tax returns, provided that the deductions meet IRS guidelines. Deductions fall in three…
It’s one of the most difficult undertakings to embark on alone. Especially when looking at the statistics, starting a business is a risky venture. This is especially true if you’re financially unprepared. One of the biggest challenges to more than 30% of small business owners is capital! Depending on the business, starting costs and the required capital will vary massively. Small business costs in particular can really take the wind out of your sails going forward. How Much Does Starting a Business…
While the phrase “don’t put all your eggs in one basket” can often be sound advice in daily life, it doesn’t exactly apply when it comes to your business finances. In fact, consolidating all of your business finances to one source like a certified accounting and financial group can ensure that you streamline your bottom line and keep accurate financial records. Cash Flow Management One key benefit of consolidating your business finances is simplified cash flow management. It’s a factor…
As a small business owner with a lot on your plate, the last thing you need is to make any tax filing mistakes that could bring the IRS to your doorstep. Often getting audited by the IRS isn’t always the result of intentional acts. Here are five of the most common tax filing mistakes that are likely to get you a dreaded letter from the IRS asking for more information: 1. Under-Reporting Income Whether you are a freelancer, a brick-and-mortar…
As a small business, your financial health is vital. Profit and cash flow are essential elements of a thriving business, but they aren’t the same thing. As you grow your business, you’ll need to understand the difference between making and managing money. Even if you are the best at selling your products or services, you may fall short if you run into cash problems. Here’s what you need to know about profit vs. cash flow for your small business: What’s…
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