Questions to Ask Before Hiring a Payroll Service

Whether you have two employees or two hundred employees, it is important to have a solid payroll system to ensure timely payments to your staff. Many business owners agree that it can be a burden to keep up with payroll processing, but it is a necessary part of owning a business.

If you are overwhelmed with keeping up with your business payroll, then you might consider the benefits of hiring a bookkeeping or accounting service to assist. Outsourcing these tasks can relieve your stress and help you focus on the other essential tasks that need to be addressed.

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Hire an Employee or Outsource Payroll?

Hiring an in-house bookkeeper or accountant might be a good solution if you need support with payroll processing. But, you need to look at the overall costs of hiring an employee to see if it is worth the cost. Not only will you need to pay their salary, but there are other expenses such as benefits, office space, training, onboarding, and more. It is essential that you look at all of these hidden costs before deciding to bring another employee into your company.

An easy way to skip these extra costs is by hiring an outsourced payroll service. This solution allows you to hand off the burden of processing payroll, while still keeping your costs low. Payroll outsourcing is one of the best ways that you can free up your schedule and improve your business financial systems at the same time.

Automating Your Payroll Processing

Payroll processing is not only time-consuming, but it can also be costly to keep up with everything. When it is time to cut the paychecks, it is much more than just calculating the number of hours worked by each employee. Not only do you need to calculate the gross payment, but you also need to keep up with the current payroll taxes and withholdings. Then, these payments need to be sent to the government along with the appropriate reporting forms.

Additionally, there are quarterly and annual taxes that need to be considered, as well as the management of benefits withholdings and more. It can be a full-time job to keep up with the financial details for your payroll system!

As a business owner, there is no reason for you to spend your valuable time on this busy work. Hiring a payroll outsourcing team can allow you to transition to a full-service, cloud-based system that frees up your time to focus on other aspects of business management. You can sleep easy at night knowing that payroll is done and you don’t have to worry about the data entry and tedious work.

Instead of viewing payroll services as a “luxury,” it is time to switch your thinking and see that a reliable payroll management service could save your company thousands of dollars.

Questions to Ask Your Payroll Provider

When you make the decision to hire a payroll provider, you need to ask a few questions to ensure that the services match the needs of your company. Here are a few questions that can help you choose a provider for your needs:

  • What services are included in my accounting package? Most accountants will offer a specific scope of services included in a monthly plan. The best solution is to find an accounting team that will handle the payroll processing and the tax preparation as well. These two services go hand-in-hand, so it makes sense to hire someone to help with both. Payroll processing should include tasks such as payroll tax calculations, automated new hire reporting, deductions for benefits, tracking paid time off, and as-needed adjustments for reimbursements, bonuses, commissions, garnishments, and more.
  • How will the employee payments be sent? Make sure that direct deposit is available, as well as a check option if needed. Most employees prefer direct deposit, although some people want to pick up a printed check.
  • Is it a cloud-based system? Even though you are hiring an accounting team to manage the responsibility for payroll processing, you still need the option to see the reports and transaction details. A cloud-based system will give you access to oversee the details. But, make sure that the system uses the latest encryption technology to ensure the safety of the information. Also, the account information should be secured with firewalls and two-step authentication.
  • How much will I pay per month? Factor in costs for the cloud-based software as well as the accounting services. Make sure that you understand the payment breakdown based on the size of your company. Some accounting services charge a flat fee for the entire company, while others charge a fee for each employee. Compare these costs to the expenses of hiring a full-time accountant, and you will see that it is more affordable to outsource payroll processing.
  • How do I get started? Find out the best way to setup the system and start moving forward. During your initial conversation, you should discuss your current payroll system to find the best way to make the transition to the new system. An experienced accounting team will be able to offer the support that you need to make it as easy as possible.
  • Will all payroll taxes be handled? The simplest solution for payroll outsourcing is to hire a full-service accounting team. Make sure that the payroll service will include required forms such as W-2’s and 1099’s at the beginning of each year. Also, ask about practices that are in place to manage compliance for federal and state taxes, including payments and forms that need to be submitted throughout the year.
  • Can I see what the check stub will look like? Asking for an example of the check stub will allow you to see what your employees will receive. Make sure that the important details are included, such as deductions, taxes, paid time off, and more.
  • What is the policy for payroll changes? The hope is that all applicable information will be updated in the system before payroll is processed. But, you need to understand the policy if changes need to be made. If mistakes occur on an employee timecard, will you be able to update the system before the checks are cut? Be clear on the timeline to ensure that all employees and managers met these deadlines for each payroll cycle.
  • What are the customer support services that are offered? If you have a question about payroll or tax payments, then you deserve to have an experienced accounting team to answer your questions. Ask the payroll provider about customer service and preferred methods of communication. It is essential that you always have a reliable point of contact to call if you need help with anything for your business finances.
  • How much experience do you have in the industry? Research the accounting company to learn more about the experience of the team. Not only do you want to be sure that the company is reputable, but you should also consider the applicable experience in the payroll industry. Find an accounting team that has experience working with other companies that are similar to your business. This hands-on experience is essential to ensure that you are getting the best services that are available.

Most accounting teams will offer an initial consultation so that you can see if their services are a good fit for what you need. This consultation is a great opportunity to ask these questions so that you can learn more about the company and make sure that you are hiring the right team.

Getting Started with a Payroll Service

You will be amazed to see the many benefits that are available when you choose to outsource your payroll processing. This service is one of the best ways that you can optimize your business finances, free up your time, and improve the accuracy of the paychecks that are being distributed.

High-quality payroll processing helps to avoid costly mistakes that could add up every month. For example, if you miscalculate payroll taxes or deductions, then it could be costing your company thousands of dollars. The investment in a payroll service can ensure that you aren’t missing these important details that could be costing you money.

As a business owner, there is no reason that you should be carrying the responsibility of payroll processing. Right now is a great opportunity to outsource this task so that you can spend more time on business development and other management activities.

Are you ready to learn more about how your company will benefit from payroll processing and other accounting services? Then, you need to schedule an appointment with us at Easier Accounting. We want to make it as easy as possible to improve your business finances. So, we will gladly discuss your situation and find the right services to meet your needs.

If you have any questions or you are interested in learning more, we encourage you to call us for a consultation. We are here to help with anything that you need! Contact Easier Accounting for the best small business payroll processing service available: (888) 620-0770

A Step-By-Step Guide to Cut Your Small Business Debt

Most small businesses and entrepreneurs have business debt due to the costs of managing the day-to-day activities of the company. If you are uncomfortable with the amount of debt that you are carrying for your company, then you need to talk to an experienced accountant to put together a debt pay-off plan.

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In most situations, the debt wasn’t accumulated overnight. So, you shouldn’t expect to pay it off immediately. But, a financial professional will be able to make recommendations about the strategies that can be used to maximize your cash flow and improve your overall financial picture. Here at Easier Accounting, we can help with the financial strategy for your small business.

Our goal today is to provide an overview of some of the strategies that can be used to pay off your debt. Customize these ideas to create the fastest way to financial freedom for your company.

Get Clear on Your Financial Picture

It might be tempting to look the other way and only focus on minimum payments. But, burying your head in the sand won’t solve your debt problems. To get started, you need to consider the amount of debt that you are carrying and the cash and assets that are available to use.

Schedule an appointment with your bookkeeper and/or your accountant to take a look at the overall picture. Make a list of outstanding balances that need to be paid, ongoing expenses for business operations, as well as a budget you can maintain going forward. This budget needs to be designed with two goals in mind: avoiding additional debt and paying off the current balances. You need to be sure that you are earning more than you are spending if you want to pay off the debt.

During this meeting, your small business accountant might make suggestions about common budgeting and debt-reduction strategies. For example, it can be beneficial to sort through expenses to identify essential costs and ways to reduce overhead spending. At the same time, you need to look at strategies that might be available to increase monthly revenue.

Hands-On Debt Management

Now that you have a clear picture of your financial status, you might consider opportunities to negotiate better terms for your balances. Go through your accounts one by one to ensure that you understand the terms of the loan and the payment options that are available. Then, you can figure out the credit lines that need to be paid first to optimize your long-term results.

You can read the fine print in the loan terms. Or, better yet, call the company to learn about your options. This conversation can sometimes lead to a negotiation regarding the payment options. Some vendors will offer a discount or early-bird price if the money is sent ahead of schedule.

Consider using the snowball strategy to pay off all of the balances in the shortest period. If you can negotiate a quick payoff for a smaller balance, then you can roll the money that you would normally be spending for that payment into the next loan.

If possible, you should re-negotiate the terms for every line of credit. Most lenders know that it will be a huge loss if they send the account to collections. So, they are interested in finding a win-win solution for both parties. You could potentially negotiate a different minimum payment or reduce the interest costs on the money that you owe. Talk to them about late fees and restructuring the payments so that you can create an environment that will make it possible for you to pay the balance.

Set Up a System

After the negotiations are done, do everything in your power to make sure that you keep up with the payments going forward. The late fees and interest costs can make debt unmanageable. But, you can avoid these problems by making timely payments every month.

You need to have a system in place to ensure that the cash flow is available for debt payments. Make sure that you are paying your debt obligations before you consider investing money in other business development opportunities.

This system could be structured to allocate a certain percentage of your revenue to debt payments. Or, you might consider the option to set a specific dollar amount that needs to be paid each month, regardless of the revenue that you receive.

Should You Consolidate Your Debt?

Some people automatically assume that debt consolidation is the best answer to get out of the financial hole. While consolidation can be a good solution for some people, it isn’t always the best method. Make sure that you understand the terms of the consolidation before you sign on the bottom line.

What is debt consolidation? It is the method of acquiring one large loan to move all of the smaller balances into a single account. Consolidation could simplify your financial picture, and sometimes it can reduce the amount of interest that you are paying each month.

If you decide to move forward with debt consolidation, be warned that the lender might require some collateral. For example, you might need to offer a personal guarantee to back up the funds that are offered.

Be cautious to manage your spending after the consolidation loan is in place. Some business owners fall into the trap of paying off their credit lines with the consolidation loan, then running up the balances again because of poor financial management strategies.

Maximizing Your Business Revenue

Managing your debt payments is the first step to take control of the financial health of your company. In addition to looking at the amount of money that you are spending on debt payments, you also need to evaluate the money that you are receiving. Your repayment plan won’t work if you don’t have a solid cash flow to make the payments that are needed.

Aggressively building your income will be a fast way to pay down the balances. Generating more cash will help you feel motivated to reduce your small business loans and build your company for the future.

What are the best strategies to bring in more money? Here are a few solutions that might work for your company:

  • Increase Prices: Don’t bump your prices without evaluating how the increase will affect overall sales. A small price increase won’t likely have a major impact on the number of orders that you receive. But, if you sell a large volume of products, then this small increase could add up over time. For a quick boost in sales, you might make an announcement to current customers that the prices are going up. Many people will purchase products before the change happens.
  • Assess Inventory: How many items are sitting in the back of your inventory room, lost in the stacks of boxes? Your inventory represents money that is available for your company. Since you already have these products on hand, you don’t need to spend a lot out of pocket when the products are sold. So, you might consider offering a special sale to move those items. In the future, look for ways that you can optimize your inventory to avoid spending a lot of money on products that will sit in storage for a while.
  • Leverage Upsells: When someone is ready to make a purchase, it is easy to encourage them to add another small item to their shopping cart. Look for a way that you can offer bundles or incentives to encourage people to spend more money when they are making a purchase.
  • Reach Out to Current Customers: People who have already purchased from your company have shown interest in the products and services that you offer. Instead of spending your marketing budget to acquire new customers, consider the benefits of reaching to current customers. You will likely experience a bigger ROI from these marketing efforts.
  • Diversify Your Services: Is there anything else that you can add to your line of services? Diversification might allow you to break into new markets or offer your skills in a different way.
  • Ask for Referrals: Contact your best clients to see if they are interested in referring their contacts to buy from your company. You can sweeten the deal by offering a referral bonus or incentive. If people are happy with the service they have received from your company, then they will be more than willing to refer their business contacts, friends and family.

Schedule an Appointment with Your Accounting Team

These ideas should get the creative juices flowing to help you reduce your debt load. But, you don’t need to carry this responsibility on your own! Don’t be afraid to talk to an accounting expert to get customized advice to match your business. Ongoing suggestions from your accountant can be a valuable way to turn your business around and increase your future success.

If you don’t have an accounting team to help, then you need to contact us at Easier Accounting. We specialize in small business accounting, and we know the best strategies that can be used to maximize the financial outlook for your company. Call us for more information about the services that are offered: (888) 620-0770

Important Accounting Tasks that need to be Done Weekly

How many responsibilities and tasks do you manage each day in your small business? Entrepreneurs and small business owners often wear many hats throughout the day, and it can be hard to keep up with the long list of responsibilities.

Too often, business owners get caught up in the daily stresses of managing a company, and standard business practices fall to the wayside. If you are letting important bookkeeping and accounting tasks stay on the backburner, then you are setting yourself up for problems in the future.

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Instead of waiting for everything to fall to pieces, it is better to take a proactive approach to managing your business finances better. You will see that ongoing accounting and bookkeeping are critical to support the financial health of your company. These tasks are easy to do and easy not to do, but they will make a big difference to help you avoid the major issues that you could be facing in the future.

Putting Together a Business Plan

The first step to a good accounting and bookkeeping system is to be proactive with your financial plan. Good intentions don’t go very far to make sure that the bills are paid, and the accounts are balanced. So, you need to put together a plan that is realistic for your business, to ensure that there is accountability to complete the small tasks.

This plan needs to include activities that will help you properly record the transactions, stick to a budget, and look for irregularities on a consistent basis. Write down your plan and your goals, so that you can refer to your notes when there is a question.

Many small business owners don’t have the financial education to know how to put together a plan that is going to work. So, you should strongly consider the benefits of talking to an accounting professional if you want to ensure the long-term success of your company.

Here is a list of tasks that should be included in your business financial plan:

Task #1: Check Your Cash Position Daily

When you have money moving in and out of the bank account, you need to make sure that there is always enough to cover the payments that will be coming through. It has been said that cash is king, and there is no doubt that the business will run into trouble if you don’t have cash.

Some business owners start their day by checking their email and looking at local news sites. Instead of getting caught up in the online noise, you need to log into your financial accounts to see the status for the day.

Look at the balances that are in each account. Then, consider the money that you are anticipating to receive during the week. Finally, consider the bills that are due to ensure that you have enough money to cover those expenses. Daily awareness of your cash position can help you avoid problems such as overdraft fees or bounced checks.

Task #2: File and Document Transactions

If you want to maximize the profitability of your company, then you need to be leveraging tax write-offs that are available. But, it is hard to track these expenses if you aren’t keeping records and documentation. We agree that it can be a hassle to manage receipts and paperwork, but it is a necessary part of owning a business. Without this documentation, you will either miss potential deductions, or you could be facing an issue if the IRS audits your company and you don’t have the receipts to back up the write-offs.

Have a good filing system where you can store invoices, receipts, and documentation for anything else related to money that was received or spent. You might consider putting together a vendor file for each business that you work with. Or, you could record the receipts by month if you prefer.

The best solution is to ensure that these documents are recorded in your online system first, then have a filing cabinet where the hard files are kept. If you need to refer to a specific document, then you can look at your computer accounting system to find the transaction. Then, you will be able to locate the paper in your filing cabinet quickly.

As a business owner, you shouldn’t be worrying about paperwork filing and other busy work. Instead, have a secretary or a bookkeeper assigned to this task. Then, you can focus on other responsibilities without worrying about receipt management.

Keeping up with transaction recording and document filing often only takes a few minutes each day. But, you will be facing hours of work if you procrastinate it for a few weeks or months.

Task #3: Send Outstanding Invoices

Invoicing is an essential task to ensure that you are receiving money to pay for your business expenses. Sometimes, the invoices get lost in the pile of paperwork. If you have delivered services to a customer, then you need to make sure that you follow up with an invoice to get paid.

Putting together an invoicing system is essential to ensure uniformity when you send each request for payment. Many accounting systems have built-in invoicing features, so you don’t need to worry about creating invoices manually.

The best strategy is to have a set day of the week when invoices go out. Once a week, assess the work that was delivered and put together the invoices. Maintaining this consistency increases the likelihood that you will be paid promptly because your customers will know what to expect.

This schedule also gives you the opportunity to look at accounts that are past-due, so that you can send out reminders if needed. On the invoices, make sure that you have detailed information about the due date of the invoice, as well as payment options that are offered.

Task #4: Review and Pay Your Bills

Sort through the invoices that you have received from your vendors to make sure that you know the costs that are due for the week. Staying ahead of these invoices will help you to avoid unnecessary costs for late fees and interest payments. As you look at your Accounts Payable report, you need to make sure that you were billed correctly for the products or services that you received. Also, consider if any of the vendors offer discounts for early payment.

If you are having cash flow problems, then you might need to reach out to the vendors to negotiate different payment terms. These conversations can help you to streamline your cash flow and anticipate upcoming costs.

As you are looking at the bills that need to be paid, it is a good idea to assess your anticipated cash flow. For example, if you have a big payment due in a few weeks, then you need to make sure that the bank account will be padded enough when the payment processes. Sometimes, it is necessary to get creative with the timing of the payments as they move through your account.

Task #5: Assess Costs and Expenses

Instead of paying every bill that comes across your desk and then moving onto the next task, consider the benefit of assessing each expense to determine if it is a necessary cost for your business. Too often, small business owners have a long list of subscriptions and services that add to the bottom line. You need to go through these line items to determine if they are needed.

Look for “extras” that you aren’t using on a regular basis, and cut that expense to improve your cash flow. For example, you might be able to cut back on software subscriptions by consolidating all of your accounting tasks into one system. Not only will you simplify your business management, but you can save money at the same time.

Hire a Bookkeeping and Accounting Team to Help

You are already managing enough responsibilities without worrying about the daily and weekly financial busywork. Instead of spending your time chained to your desk and crunching numbers, it is better to hire a bookkeeping and accounting team that can help. These services will give you the opportunity to focus on the management of your company, and you can rest assured to know that you have a financial professional taking care of the ongoing details for your business.

Accounting and bookkeeping services are a valuable way to ensure the future success of your company. Managing the numbers will give you information about the financial health and what you can expect in the future. If you are ignoring these basic tasks, then you can anticipate that you will need to work through a financial mess in the future.

Do you need help with ongoing accounting tasks? Our team at Easier Accounting is here for you! We are experienced in small business accounting, and we know the best systems to improve the future outlook for your company. For more information about the services that are offered, call us to talk to one of our expert team members: (888) 620-0770

Business Acquisition 101: What You Need to Know Before Finalizing the Merger

It is exciting to experience growth in your business, but eventually, major growth will lead to change in the company. Established businesses often find it beneficial to acquire another company, which can rapidly expand the products and services that are offered to your customers.

If you want to expand your company, then it is essential that you are open to asset acquisition. But, you need to be cautious in the way that you proceed. Handling the situation incorrectly could result in major problems down the road.

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Advice from the Professionals

When you are moving toward an acquisition, the best thing that you can do is consult with an experienced business accountant. Your accountant will look at the numbers to determine the potential for future growth, helping you to see the possibilities that could be created in the future.

Most business owners don’t have experience or education to know how to handle an acquisition. Attempting a do-it-yourself approach could eventually bring down the company. You need to be sure that you are managing your cash flow and employees, to provide top-notch services to your customers throughout the transition.

How do you know if the acquisition is in line with your goals for the company? Keep reading to learn more about how an acquisition could impact your business.

Do Your Homework

Even if the storefront looks nice, you don’t know a lot about the company until you get a look at their books. It is essential that you have an audit completed. All of the numbers need to be checked and double-checked, to be sure that you aren’t overlooking any potentially harmful financial information.

This research gives you a full picture of what you are getting yourself into from a financial standpoint. Even if you have positive predictions for the future, there might be a lot of work to get to that point. Look at the real numbers right now to understand the debt load, cash flow, income, and burdens that will need to be managed.

Stay grounded in this research process! Too often, business owners get overly excited about the possibilities. As a result, they overlook the harsh realities that will need to be faced when the merger is done. It is good to identify the possibilities, but you also need to be focused on a realistic forecast and how it will impact the financial success of your business.

Not only should you audit the books, but also look at the reputation of the owner and managers. Finding a history of lawsuits or reputation problems could be a red flag that you are stepping into a bad situation. Ask questions about investor or shareholder reputations. Look for details about conflicts or lawsuits that have been recorded.

If you find that the business owner complains about the audit or tries to withhold information, then you might consider walking away from the deal. It is essential that you have full transparency about the situation so that you can determine whether the merger is a smart move.

Is the Company in Alignment with Your Culture and Mission?

There’s always an adjustment period after an acquisition. But, these adjustments can be nearly impossible if you are bringing in employees who are accustomed to a drastically different company culture. If you want to merge the teams, then you need to have a plan in place that will bridge the gap in office culture.

The easiest solution to choose a company that already offers similar services. When things are in alignment from the beginning, then employees won’t need to go through drastic changes after the merger is complete.

In the situation where you are buying a company that offers products that are significantly different from your current offerings, then you need to show your customers how it makes sense. Highlight the opportunities that are available for customers, helping them to see the benefits that they will receive because of the acquisition.

What are the Anticipated Cash Flow and Operating Expenses?

The purchase price is usually the number that is focused on during the negotiations. While the initial price is important, you also need to consider the impact of operating costs after the sale is complete. Regardless of past performance or future projections, you need to be able to cover the daily operating costs for your new venture.

Find out details about monthly expenses, payroll, equipment, and any other overhead costs that will need to be paid. Does the company own, lease, or rent their building? How much is spent for the monthly office costs as well as utilities? What are the anticipated costs of employee benefits, payroll, and training?

All potential scenarios need to be considered so that you can see the impact on your business. Even if you aren’t planning to keep all of the new employees, you need to consider potential upfront costs for severance packages.

Never make the mistake of forming assumptions or guessing on the numbers for operating costs. Instead, it is better to look at a few years’ worth of balance sheets and bank statements. Your business accountant can help you understand the current position of the company and the things that you can expect in the future.

Current Market Conditions

The market can change over the years, which often has a big impact on sales and revenue. Is the economy for your industry increasing or declining right now? If things are slowing down, then you might have more success buying a new venture instead of sticking in the same line of products.

For example, businesses that previously offered landline phone services were left in the dust if they didn’t innovate with the invention of cell phones. As the industry was changing, it would have been a poorly timed move to acquire another landline phone company. But, the businesses which merged with companies that offered newer technology could use the acquisition to support future growth.

Look for acquisitions that can allow your company to offer new services or products, add new accounts in the industry, or give your business a competitive advantage in the industry.

If you are investing in a new company, then it is best if the acquisition brings in new customers and provides the options to expand the list of current customers.

Have a Plan in Place for All Scenarios

Even though the hope is that your merger will boost profitability and future success, there is a possibility that the efforts might fail. If things go wrong, how will you handle the situation? Too often, business owners know how to manage the successes, but they are unsure about how to handle the failures.

You might not be planning to fail with this effort. But, you need to be sure that you have an exit plan in place. Talk to your accountant about all possible scenarios that you might experience. Then, put together a strategy that will help you handle the situation as it plays out.

The advice from an experienced financial professional can help you avoid common mistakes along the way. Maintain open communication with your accountant and business lawyer to ensure a smooth process to close the deal.

Real Value for Your Company

Looking through this information will help you see the real value that is available through the merger. It is essential that you develop solid evidence that your business acquisition will bring new value and revenue for your company. Otherwise, you might be stunting the growth of your company by bringing in another business line that is not sustainable.

If the business you are acquiring is in serious financial trouble, then you might have a hard time pulling the company out of the nosedive. But, there are situations where this situation can be a recipe for success when handled correctly. So, the best scenario is to put together a detailed business plan that can help you overcome potential roadblocks along the way.

The best way that you can support rapid growth for your company is to work with a team of trusted professional accountants. These financial experts can answer your questions and sort through the numbers to identify the best- and worst-case scenarios that you can experience.

Talk to an Experienced Team of Accountants

Here at Easier Accounting, we offer top-notch business accounting services. We can support you through all the changes that you might encounter throughout the year. Our goal is to manage the books and tax paperwork, to keep things simple so that you can focus on the growth of your company.

By working with an accountant professional, you set yourself up for success. We have many years of experience helping small business owners with growth, acquisition, and development. Our financial services can be a powerful way to help you maintain full transparency so that you can make the right decisions for the future of your business.

Are you ready to learn more about our high-quality business accounting and bookkeeping services? Then we invite you to contact us to have a conversation about how our team can help your company: (888) 620-0770

Boost Your Success by Making Necessary Adjustments to Your Business Strategy

Entrepreneurs start out with big dreams and great intentions, hoping to make a difference with their business efforts. Even if you are thorough with your business plan, it is likely that you will face roadblocks and potential problems along the way. Being a business owner means that you need to be able to make adjustments to accommodate the changing needs of your company.

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Changing Your Business Strategy

Have you ever watched a football game, and noticed when an athlete “fakes” the ball? They try to confuse the opponent by pretending to throw the ball in one direction when the play will actually result in a different outcome. These athletes need to think on their feet and read the field, making adjustments and split-second decisions along the way.

In the same manner, entrepreneurs need to see how things are pulling together so that they can make the best decisions for the future success of their company. If a decision doesn’t look like it is going to turn out as anticipated, then you might need to make some changes to avoid problems. Sometimes, these decisions need to be made in an instant. Your goals of business success remain the same, even if you need to make adjustments to the focus or flow of products and services.

But, you should always be sure that you are making the decisions based on logic and reason, instead of emotion. It can be hard to separate your emotions and logic when you have been working so hard to build the company. So, you need to be sure that you have a team of financial professionals who can offer advice every step of the way.

Why Does Business Strategy need to be Changed?

There are several scenarios that might require adjustments and changes for your company. For example, if you encounter an obstacle or problem that is halting the growth of your business, then you need to look for options to move around the problem. Don’t let yourself get stuck in the rut waiting for things to change! Instead, be open to suggestions and look for other ways that you can solve the issues you are facing.

Here are a few reasons why you might consider changes in your company:

  • High turnover
  • Changing industry
  • Irrelevant product
  • Stiff competition
  • Employee issues
  • High turnover
  • Personal problems

Sometimes, small adjustments can go a long way to adjusting the trajectory for future success. Other times, it might be necessary to completely re-vamp systems or change product offerings to stay relevant in the industry. You might not be able to predict the changes that will be needed. But, you can stay up-to-date about current trends, successes, and projections for the future. Keeping current with the financial reporting will give you the information so that you can make changes when they are needed.

Business owners don’t often have time to worry about bookkeeping tasks or accounting reports. Instead of spending your valuable day crunching the numbers, you should consider the benefits of hiring a professional accountant to help. These services will free up your time so that you can focus on business growth activities. At the same time, you will still have access to the important financial information that will support the decisions that you will make for the company.

Setting the Intention for Your Company

Ultimately, you need to make sure that you have a clear intention for your company and you have laid the roadwork to ensure action to reach your goal. If you aren’t intentional with your daily, weekly, monthly, and annual plan, then you could be missing out on potential success in the future.

Most business owners don’t realize that they lack the intentional planning that is needed. Instead, they get side-tracked with problems and issues that need to be handled along the way. Then, the problems eventually get bigger when the foundational issues aren’t addressed.

Consulting with an accountant and other business professionals is important so that you can put together a successful business plan. Then, you need to keep your eyes and ears open on the market, so that you can identify when changes need to be made along the way.

Your business plan should outline the steps that need to be followed that will lead to the future growth that you desire. Without measurable, actionable items, it is difficult to know how things are going work out for your company. So, you need to be deliberate about hiring the right team that will provide the necessary support that is needed.

Focusing on Solutions, Not Problems

There is no doubt that problems and roadblocks will be encountered when building a business. The question is: how are you going to handle those issues? Some people get caught up in the problem, which slows down the action and stops important business functions. But, successful people recognize the problem, then identify potential solutions instead of dwelling in their disappointment or frustration.

It has been said that a large percentage of new businesses will fail within the first five years. What happened to those companies? Too often, problems arose, and the business owner didn’t have the flexibility to change or make adjustments to cater to the needs of the industry.

Business owners who are unwilling to change their strategy are on the road to failure. There is no doubt that the business world is rapidly changing, especially with the information that is available online. As you are starting a business, you need to be ready to go with the flow and make adjustments as needed.

Putting Employees and Customers First

Now that you can see how change is an unavoidable part of business ownership, the next step is to identify the types of changes that can be made to protect your company. Remember, change isn’t always a bad thing! But, it can be bad if handled incorrectly.

If you are getting ready to implement changes in your company, then you need to maintain strong leadership that will support your team. Put employees first so that they can see the benefits and hop on board with the new initiatives. Employees often feel terrified at the idea that changes are occurring in the workplace, which can sometimes lead to turnover.

These problems can be avoided by maintaining open communication with your employees. Be careful so that you cultivate an environment that is positive and encouraging during the transition. If management is grumbling, then the employees will likely be unhappy as well. So, you need to take a top-down approach to lead by example.

It is also essential to consider the needs of your customers, to avoid losing out on a long list of people who have purchased your product or service in the past. Proactive retention marketing can be a valuable way to offer information and highlight new services that are available.

Close Communication with Your Accounting Team

Whether you are maintaining consistency in your company or you are preparing to make major changes, it is essential that you stay in close contact with your accounting team. These financial professionals can help you see how the changes will impact your bottom line. They will be able to highlight information about potential growth or cash flow issues that might be downstream from your decision.

Additionally, an experienced accounting team can help you put a new plan in place. Strategically, you can minimize the risk when implementing changes, to protect the business interests of your company. You need to have an unbiased financial advisor who can look at the numbers and help you choose the best strategy to ensure success in the future.

Ongoing financial tracking is necessary so that you can continuously identify potential problems along the way. At the same time, your accounting team can help you see opportunities to maximize cash flow and profit. Staying agile in your industry will help you maintain your edge over the competitors, leading your company to bigger growth in the future.

An Experienced Accounting Team to Support Your Business

Are you missing out on potential opportunities for growth in the future? It is important that you are working with an experienced accounting team who will offer you the necessary support as you are building your company.

Our team at Easier Accounting focuses on accounting solutions for small businesses and entrepreneurs. We understand the nuances of starting a business and working through common growing pains. We are here to help with the financial tracking that is necessary to ensure the success of your company.

We will help you stay ahead of the numbers and manage tax requirements so that you can focus on the strategy of managing your business. With the right financial team, you can rest assured to know that you aren’t overlooking important information when you are making big decisions for your company.

When you are ready to work with a top-notch accounting team, then we invite you to contact us to learn more about the services that are available. We are here to help! Call anytime for information about how we can support your business efforts: (888) 620-0770

Is it a Good Idea to Transition to Cloud Accounting?

Some business owners get stuck in the rut of maintaining old accounting systems. If it isn’t broken, then why does it need to be fixed? Even though an outdated accounting system seems to be working right now, it is essential to look at the benefits that you might be leaving on the table if you don’t upgrade.

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What is Cloud Accounting?

Have you heard people refer to “the cloud?” This term is used when any software or program is hosted on the internet. Every time you access the information, you are looking at files that are stored in an off-site location instead of keeping the files on the hard drive of your computer.

There are many benefits to using the cloud for your accounting system. Businesses that implement these strategies have found that they can save both money and time by making this transition.

Objections to Cloud Based Accounting

Business owners who are stuck in old accounting systems often have similar objections. Here are some of the comments that we often hear:

  • I won’t lose the files if they are on my own hard drive: One misconception is that files stored in the cloud have a higher risk of getting lost or deleted. It can be devastating to lose financial information, so it is understandable why people are nervous about trusting an unseen server for file storage. The truth is that cloud storage offers a safer option compared to files that are kept on the hard drive of your computer. With multiple back-ups at off-site locations, your files will be protected even if your computer hard drive crashes.
  • Cloud accounting isn’t secure: Who will be managing your financial details if the files are stored in the cloud? These systems are designed to be secure, keeping your information protected at all times. Certain security measures are implemented, such as encryption and password protection, allowing you to control the people who can access your information.
  • It will be too expensive to update the accounting system: The truth is that you might save money by implementing a new accounting system. Old software programs can be expensive to upgrade each time a new version is released. Instead, a cloud-based program always gives you access to the latest features, helping you to save money and time.

If you are ready to learn more about the benefits of a cloud-based accounting program, then we are here to help! Call our team at Easier Accounting to learn more about how we can implement this system for your business: (888) 620-0770

What You Should Do if Your Small Business is Unprofitable?

The first few years of business ownership can be a rocky experience as you are trying to determine if the business will be profitable long-term. During the first few months or years, it is possible that you might see that your business is running in the red. Even if you post a loss, it doesn’t mean that you won’t be successful in the future.

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Should You Give Up or Proceed?

When a small business owner sees that the business isn’t profitable, then it is common to assume that it is time to close the doors and stop offering services. But, don’t rush to conclusions without talking to a financial professional.

The truth is that many businesses struggle financially for a few years. It takes time to build up inventory and a client list. By pushing through right now, you could set up your company for success in future years. Many business owners choose to proceed, but they are hesitant because they don’t know how the financials will pull together.

Plan and Commit to Action

Passion can fuel success in your company. If you still believe in the potential of the company, then you need to be willing to make sacrifices and put in the effort for future success. If you are hesitant about the strategy, then you could potentially hurt your business efforts.

It is essential that you talk to a financial professional to put together a plan. By monitoring the things that have worked, then you can put together a strategy that will lead to success. Having a good plan will give you the confidence that you need to move forward in the right direction. Set a forecast for the potential within your company.

Be Careful with Your Decisions

One common problem is that business owners will make decisions based on emotions instead of logic. For example, a stressful situation might cause a person to invest business funds into a questionable source. Instead of letting yourself make emotional decisions, it is better to talk to an accountant who can offer professional advice.

Run reports to see the details about what is happening within your business. Then, you can put together a strategy based on the numbers. These calculated decisions will ensure that your expectations match up to the potential performance of the company.

Here at Easier Accounting, we know that there are many financial decisions that need to be made in a small business. Contact us so that you can talk to an accountant who can offer the advice that you need: (888) 620-0770

Year-End Accounting Checklist: Don’t Forget!

As you are busy marking off the items on your holiday shopping list, it is important that you don’t overlook the things that need to be done for your business before the end of the year. Certain tasks need to have a timestamp before the year’s end, so they apply to your taxes for the 2016 business year.

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Here are a few things that you should consider before the year ends:

Organize Your Receipts

Make sure that you have documentation for all of the transactions for the year. If you are missing any receipts, you can contact the vendor to ask for a new copy. Sometimes, it might be as easy as downloading the information from an email confirmation or an online database.

Keeping the documentation organized will make it easy for you to provide these details to your accountant when it is time to do your taxes. Make sure that all of the online transactions match up with your receipts.

Buy Office Equipment

If you need any computers or office equipment, right now might be the perfect time to make the purchase. Not only can you find great holiday sales, but you can also use the purchases as write-offs for 2016.

These purchases need to happen by December 31, 2016, if you want to use them for your taxes this year. Look at your year-to-date reports to decide if it makes sense to buy the equipment now, or if it would be better to wait until next year.

Talk to Your Accountant

Is there anything that you are overlooking before the year ends? Your accountant will stay current with all of the deadlines that need to be met. A quick conversation with your accountant can ensure that you have all your bases covered. Send an email or pick up the phone to ask if there is anything that you need to do before the end of the year.

A good accountant will work on tax strategy with you, and make recommendations about techniques that can be used to minimize tax burden.

If you need help wrapping up your business finances for the year, it is a great time to connect with a new accountant. At Easier Accounting, we are experienced with small business accounting, and our team is here to help. Contact us to learn more about the services that are available: (888) 620-0770

What is the Difference between Income and Profit?

As you see your business generate money throughout the year, it can feel good to see that your business is succeeding. But, don’t be fooled by assuming that you can do whatever you want with the money in the bank. It is important that you understand the difference between income and profit so that you can manage the cash flow for your company. It is important to keep and maintain your record. It us recommended to do a review or to get with your accountant every month. If you are meeting with your accountant it doesn’t have to be face to face. A quick phone call or even in a virtual meeting such as GoToMeeting or Google Hangouts works well. This way you can view financial statements and go over things so you know where your money is going, before it becomes a bigger problem.

If you don’t have an accountant you can give us a call at  (888) 620-0770 and we would be happy to talk to you or you can do a quick Google search for “accounting for small business” etc, but make sure you read the reviews and make sure to ask them questions about your type of business and obviously make sure they are a good fit for your business.

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Income vs. Profit

The terms “profit” and “income” are often used as synonyms, but you need to distinguish the difference between these two numbers. Income is the top-line revenue. This number is calculated by tallying every penny that came into the company during a given period. Income is commonly referred to as “Gross Revenue.”

On the other hand, profit is the amount that is left over after the expenses have been paid. To calculate this number, figure out your gross revenue and subtract the cost of goods that were sold as well as the expenses. Profit is also often called “Net Revenue.”

Why You Need to Know the Difference

Why does it matter if you know the difference between income and profit? It comes down to cash flow and financial decisions. For example, you might look at the income number without considering upcoming expenses, and mistakenly spend the money on something without saving enough to cover bills that are due. This problem commonly happens with tax bills or the cost of inventory management.

When the money hits the bank account, then business owners make the mistake of making business decisions based on the current balance instead of planning for the future.

Working with Your Accountant

Before you make any sizeable financial decisions, it is important that you consult with your accountant about the financial health of your company. Together, you can analyze a Profit and Loss Report to get a feel for the way the money is flowing through your company. This financial strategy is essential to ensure that you have the cash flow to pay for future capital expenditures, payroll, or perhaps an upcoming tax bill.

Ongoing financial record keeping is critical so that you know that your P&L report is current. Make sure that you are staying consistent with tracking all of your company’s income and expenses throughout the year.

At Easier Accounting, our goal is to simplify the accounting process so that you can focus on the other responsibilities of owning a business. Contact us to learn more about how our team can help your company: (888) 620-0770

What Makes Our Accounting Services Stand Out from the Competition?

Even though there are many accountants available to choose from, it is important that you understand the difference in services that you will receive. As a small business owner, it is essential that you have a financial professional to talk to about your accounting needs. When you are turning to someone for financial advice, you need to make sure that they have the right experience and qualifications to help.

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Modern Accounting Services

Here at Easier Accounting, we are focused on delivering the best quality services to each of our clients. We stay up to date with the trends and changes in the accounting industry, giving you the opportunity to get real-world advice for your business.

Our specialty is accounting services for small businesses, start-ups, and entrepreneurs. We are experienced with specific strategies that can help maintain balance in your business. This strategy can be used to help your business grow to higher levels of success.

Accounting Advice All Year Long

Do you currently have an accountant that is MIA throughout the year? Some accountants only show up when it is time to file annual taxes, and then their time is limited because it is the busy season. As a small business owner or entrepreneur, it can be frustrating to feel like you have nowhere to turn when you have a tax or financial question.

Instead of hiring an accountant that only shows up at tax time, it is better to have a team who is there to offer support throughout the year. Tax time is important, but you need to make sure that your business finances are organized all year long so that you are ready when tax time rolls around.

High-Quality Outsourced Accounting

There is no need to bring in another employee to manage your business finances. Even though it might seem logical to hire an employee, there are many benefits to choosing outsourced accounting instead. An outsourcing service is cheaper than an in-house accountant, helping you to save money on the expenses.

Additionally, you will have the opportunity of tapping into the accounting expertise of a team that has worked with many other businesses. This real-world experience goes a long way to help us offer the best accounting services for your businesses.

Here at Easier Accounting, we have worked hard to be the leader in the accounting industry. We want to show you why our services stand out from the competition. Contact us today to learn more about the options that are available: (888) 620-0770