We receive a lot of interesting questions about deductions. Recently, the deductibility of a pet was a topic of conversation. The scenario is a dog who “works” alongside his person who happens to be a truck driver. The dog (named Clutch) is outfitted in company gear and takes his job of protecting the driver very seriously. Clutch is also in charge of client relations and makes sure to woo all customers with his adorable demeanor. Despite his clear value in company operations, Clutch’s expenses are unfortunately not considered deducible by the IRS.
Bookkeepers are an integral part of your financial process. They do the heaving lifting to keep your financial information up to date and correct.
It’s that time of year, rounding out the fall season and sliding into the last few months of the year. We get lost in the day to day work and those unexpected events. Take a moment to take stock in what you and your business have right now and see where you are compared to where you started the year.
Just as a personal budget can help ensure enough money is saved for retirement, a business budget can help ensure the company can succeed long into the future. Budgets also help start-ups step off on the right foot. Even without historical expenses data, taking the time to forecast income and expenses for the month, quarter and year(s) ahead will help keep your business lean, efficient and open for business.
If you pay your employees every other week but your income is recognized monthly, your revenue will not be matched to the expenses that helped earn it. On your income statement (P&L), expenses would be understated some months and overstated others.
So many small businesses think chasing the biggest companies with the largest accounts is the answer. Just because you earn a lot of business from a client doesn’t necessarily mean they are the most valuable or most profitable.
The Pandemic has brought to light the importance of financial management at nonprofit organizations. Many organizations are overwhelmed with demand and short on resources. A crisis always highlights weaknesses, but it can also identify opportunities. As a board member, what financial information do you need to guide the organization though the ever-changing community the nonprofit serves?
Small business owners wear many hats, and it's easy to let things slip through cracks (like that great marketing campaign you were going to do for the holidays). It's nothing to feel bad about ... when priorities shift, your attention and time needs to as well. There are plenty of tasks that can be tabled, but there are some that border on dangerous when delayed, and bookkeeping is one of them. When you let it pile up and get too far behind, the details start to slip and are harder to reconstruct. So, we thought we'd share a few of our sagely tips that seem to be useful in keeping the time spent tracking your finances as efficient and effective as possible.
Every business owner is concerned with being profitable, particularly in this pandemic. Profit is not just the money you put in the bank. You need to cover the costs associated with being in business (rent, payroll, taxes, supplies, etc.). The amount left over is your profit margin. While there is no magic formula for making your small business profitable, there are several things you can do to increase your profit margin.
It is known that most Americans leave several days of vacation on the table each year, but what about the business owners? We rarely break away from our beloved business for evenings and weekends, let alone a few weekdays. Pride and passion drive our vision, mission and ideally a strong bottom line. And this year, with normal vacations being cancelled and many people operating out of their homes full-time, it may be more important than ever to just give your mind a little space.
Here are few reasons why you should give yourself permission to vacation: