Planning
What scares small-business owners? According to a recent survey, they are most worried about:
- Taxes
- Government requirements
- Poor sales
So what’s a nervous small-business owner to do? Instead of fretting about how government regulations, shutdowns, and debt defaults might affect your bottom line, channel your energy into focusing on what you can control: financial planning, customer retention (and acquisition), and risk management. Once you’ve got a handle on these, you’ll find those other concerns are much less scream-worthy.
- Financial planning. Not knowing where you stand financially will cause much more stress than being certain. Once you know the reality of your financial situation (loan obligations, upcoming taxes, projected revenue, etc.), you can make spending decisions more confidently. Bonus: A solid financial plan will prepare you for the next tax bill or unexpected event.
- Customer retention. Dozens of studies have shown that improving the customer experience and retaining customers can save businesses money and increase revenue. If you don’t yet have a system for upselling existing customers and ensuring they have a positive experience, you could be wasting money.
- Risk management. Consider the types of natural disasters or financial blows (theft, lawsuits, etc.) that could impact your business, then devise a plan to manage them. How would you operate with damaged premises? What extra roles could your staff take on? With some proactive risk management, you can minimize the damage external forces can cause your business. Bonus: When you take time to review your risk exposures, you can take action to fix the things most likely to cause a financial loss.
It’s normal for small-business owners to be worried – we all are. Instead, use that worry to fuel action. If you’d like to learn more about how we can help you prepare, take managing your business finances off your plate, and help you grow your business, schedule a call with us today!
Planning
Accurate bookkeeping is not just a matter of compliance; it can significantly impact your business’s overall value. Here are several ways in which accurate books can increase your business’s value:
- Improved Financial Decision-Making: Accurate financial records provide you with a clear understanding of your business’s financial health. This helps you make informed decisions about investments, expansion, cost-cutting, and other strategic moves that can enhance profitability and, in turn, increase the value of your business.
- Attractive to Investors Investors: Whether they are venture capitalists, angel investors, or potential buyers, are more likely to be interested in a business with well-maintained and accurate financial records. Transparency and credibility in financial reporting can make your business more appealing and may even lead to a higher valuation.
- Efficient Tax Planning: Accurate books help optimize your tax strategy. By identifying legitimate deductions and tax credits, you can minimize your tax liability, which ultimately increases your after-tax profitability and, in turn, the value of your business.
- Better Cash Flow Management: Accurate books allow you to monitor your cash flow effectively. This ensures that your business can meet its financial obligations, avoid liquidity crises, and continue its operations smoothly, all of which are essential for maintaining and enhancing value.
- Improved Creditworthiness: Accurate financial records can enhance your business’s creditworthiness. This can lead to better terms when seeking loans or credit lines, which can be used for expansion or investment in growth opportunities.
- Compliance and Legal Protection: Proper bookkeeping ensures that your business complies with tax laws and regulations, reducing the risk of audits, penalties, and legal issues. Avoiding these problems helps protect your business’s reputation and, by extension, its value.
The quality of bookkeeping is important. If you want to make important and major decisions for your business, keep your books accurate because numbers can affect many decisions you want to make as a business owner. If you need some help getting your books in order so you can get a clearer picture of your finances, book a call with us today to find out how to get started!
Planning
The fourth quarter is critical for business owners to prepare for the upcoming year. Here are key areas to focus on during your planning:
- Budget Assessment: Evaluate your current year’s budget and compare it to actual results. Identify any variances and adjust your budget for the next year accordingly.
- Cash Flow Analysis: Ensure you clearly understand your cash flow situation going into the fourth quarter and prepare a cash flow projection for the next year.
- Tax Planning: Review your tax situation and assess opportunities for tax optimization, such as making necessary deductions or contributions before year-end.
- Prepare year-end financial statements, including profit and loss statements, balance sheets, and cash flow statements, for internal analysis and potential reporting to stakeholders or investors.
- Review and update your business plan and long-term strategic goals. Identify areas for growth, diversification, or cost-cutting.
- Conduct performance evaluations and set goals for the next year. Consider offering incentives or bonuses to motivate and retain key employees.
- Ensure that all financial records are organized for year-end tax reporting. Consult with a tax professional to take advantage of any available deductions or credits.
- Plan your holiday marketing campaigns and promotions to boost year-end sales. Consider how you’ll carry this momentum into the first quarter of the new year.
- Assess the need for equipment, technology upgrades, or facility improvements. Budget for necessary capital expenditures and plan for financing if needed.
- Ensure compliance with all regulatory requirements, including business licenses, permits, and industry-specific regulations.
As the fourth quarter approaches, businesses strive to source new business and generate income as much as possible. Nonetheless, it is also an ideal time to evaluate the financial status of your company and guarantee a solid start in the coming year. If you require assistance with your financial matters, we are here to help!
Planning
As a business owner, you’re constantly faced with decisions that impact the success and growth of your company. One such decision is hiring employees or independent contractors to meet your business’s needs. Hiring independent contractors can offer numerous advantages, and understanding the benefits can help you make an informed choice for your business.
Cost-Effectiveness: One of the most significant advantages of hiring independent contractors is cost-effectiveness. Unlike employees, independent contractors are not entitled to benefits such as health insurance, retirement plans, or paid time off. This means you can save on payroll taxes and other employee-related expenses, resulting in significant cost savings for your business.
Flexibility: Independent contractors provide a high level of flexibility for short-term or project-based work. Whether you need extra help during peak seasons or require specialized skills for specific tasks, independent contractors allow you to scale your workforce as needed without long-term commitments.
Specialized Skills: Independent contractors often bring specialized skills and expertise to the table. By hiring contractors with unique talents, you can access high-quality work and knowledge that may not be available within your existing team.
Reduced Administrative Burden: Hiring and managing employees comes with various administrative responsibilities, from payroll processing to compliance with labor laws. When you hire independent contractors, many of these administrative tasks are often handled by the contractors themselves, easing your administrative burden.
Limited Liability: Independent contractors are responsible for their own business operations and liability. This means that you may have reduced legal exposure compared to hiring employees.
It’s important to note that misclassifying employees as independent contractors can lead to legal issues and fines. Make sure to adhere to legal guidelines and the IRS criteria for determining worker classification.
Discover the seamless experience of working with our expert team. Let us handle your business finances while you focus on growing your business.
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