Posts

Bad Habits that are Sabotaging Your Business Finances

Even if you have the best intentions for your business, it is likely that bad habits (both big and small) are sabotaging your efforts. Have you identified habits that might be impacting your bookkeeping practices, business finances, cash flow, and more?

Small Habits are Worse Than You Think

Some of these habits might be obviously bad, but they don’t seem to be impacting your business in a terrible way. But, don’t let yourself be fooled. The smallest habits can have a compound effect over time. In fact, your daily, weekly, and monthly habits are key indicators that will affect your business success in the future.

For example, an overflowing filing cabinet with poor organization might seem like a nuisance. But the lack of organization with your paperwork could have a domino effect on your tax deductions, customer billing practices, and more. Not only will important information be overlooked along the way, but you will also spend an unnecessary amount of time sifting through papers when you need to find a specific document.

Instead of letting these small habits take away from the more important business tasks that need to be addressed, it is time to make a change that will improve your practices.

Important Bookkeeping Practices that Need to Be Fixed

Here are some of the worst bookkeeping and accounting habits that are causing problems for your company. You need to be aware of these problems, then commit to making the change that will turn things around for your business going forward:

  1. Messy Paperwork: Invoices, bills, contracts, and random paperwork can make you feel like you are buried in stacks of nonsense when you are sitting in your office. If you aren’t organized with the paperwork, then it will have a domino effect on all aspects of your business. A lack of organization with the paperwork means that you are likely missing deadlines and paying late fees because you can’t keep track of the necessary information. Put together a filing system and set aside time in your schedule to ensure that you are keeping up with the filing throughout the year. Your accountant can offer information and advice about the information that should be kept in your filing cabinet.
  2. Poor Deadline Management: Regardless of your industry, you always have deadlines and due dates that need to be managed. Failing to set these deadlines and adhere to them means that you could be missing key points along the way. For example, do you have a schedule to manage the frequency of when reports are run and analyzed for your business finances? If you are only looking at these reports once a year at tax time, then you are missing out on opportunities to improve your business strategy throughout the year.
  3. Not Saving for Taxes: One of the most stressful things that you can face as a business owner is a hefty tax bill that can’t be paid because you don’t have the cash flow when the deadline comes up. It’s no surprise that taxes need to be paid… you can count on it happening every year. Make sure that you are prepared by setting aside a specific amount of money so the cash is available when the taxes are due. Also, keep track of quarterly estimates and payroll tax deadlines to ensure that you are meeting the tax payment schedule based on the requirements of the IRS. Tax calculations and payroll management can be confusing and stressful, which is why it is important for every business owner to invest in professional financial services.
  4. DIY Financial Management: Just because you know how to balance a checkbook doesn’t mean that you have the bookkeeping and accounting skills for DIY business calculations. Working through tax laws, cash/accrual accounting systems, profit and loss reports, and other requirements for business accounting can be problematic. If you aren’t professionally trained in bookkeeping and accounting, then there is no question that you will benefit from professional support.
  5. Cutting Corners on Bookkeeping and Accounting: Yes, it is smart to save money whenever possible. But you will be making a big mistake if you cut corners by hiring a newbie instead of an industry professional. Even though you can find someone with basic secretarial skills which only costs $15/hour, it’s hard to calculate the opportunity cost of the services that come from a professional accountant. Whether you are hiring an employee or an outsourced contractor, make sure that you are paying the right amount to work with a professional. It’s worth the extra cost to ensure that things are done the right way. In fact, you will likely save money because you can avoid mistakes that could cost you in the future.
  6. Ignoring Software Solutions: There is always a learning curve when implementing a new software program for your business efforts. Even though it takes a little bit of effort to implement these systems, it is important if you want to set yourself up for the future. Talk to your accounting and bookkeeping team to determine the right software solutions that will be best for your industry. Once the software is up and running, you will benefit from the integration that simplifies your life and ensures that everything is running smoothly together. Data synchronization helps to reduce errors that pop up due to manual calculations and will improve efficiencies as well.
  7. Standardizing Business Financial Systems: Failing to have standardizations in place for your ongoing systems is a mistake that could take a toll on your success. Do you have a set schedule and standard practices in place for client billing and management? Consider the ongoing systems that affect the money that flows in and out of your business. Then, create a standardized system so that all employees, managers, and contractors are on the same page with expectations going forward.
  8. Ignoring Financial Reports: When you are busy managing employees, working on business development, and coordinating the new marketing plan, it probably feels like financial reports are low on your priority list. Don’t make the mistake of assuming that you only need to look at business finances at tax time. The most important thing you can do as a business owner is to understand key accounting metrics so you can track this information throughout the year.

Tapping into Professional Support to Change Bad Habits

Now that you’ve identified some of the bad habits that are affecting your business, it is time to make a change. But the best of intentions won’t make a difference if you aren’t willing to change ongoing actions and practices. Without the right systems, you will be facing ongoing problems in the future that will impact the success of your company.

As a business owner, the best thing you can do is tap into the professional support that is available to change your bad habits. Spend the money on services to ensure that your bookkeeping and accounting systems are set up in a way that will support your success going forward. Even though it costs a bit of money for the setup and ongoing maintenance, view this spending as an investment for all of the benefits that are available for you in the future. There’s no question that the right bookkeeping and accounting services can optimize your spending, increase profit margins, and maximize tax deductions that are available.

Let the Pros Fix Your Bad Habits

Often, the worse accounting and bookkeeping habits pop up when business owners attempt a DIY approach with their business finances. You need to be willing to let go of these habits, which means that it is time to implement the advice that comes from an industry professional. Tapping into the expertise that comes from an accounting team means you can get rid of these bad habits. Trust that your financial tracking and reports are in good hands, then turn your attention to other business responsibilities that need to be handled throughout the year.

As you are choosing an accounting team, make sure you find a contractor with experience helping small business owners. This ongoing expertise gives you the benefit of tapping into proven systems and strategies. You don’t need to reinvent the wheel when we already have formulated the best practices that can be implemented into your business.

Will You Benefit from Outsourced Accounting Services?

Right now is a great time to evaluate your business finances and determine the areas that need improvement. As you look at the weak points in your business, you will find that outsourced accounting services can be the perfect solution to fill in the gaps.

Look for experienced contractors that offer a variety of accounting services. It is essential that you find a team for ongoing accounting support, instead of only talking to your accountant at tax time.

Easier Accounting is available to offer the support that you need. Contact us any time to learn about the accounting packages and small business services that match the needs of your business. We will personalize the services based on your preferences and needs: (888) 620-0770.

How Your Company Will Benefit from Small Business Accounting Services

Do you get stressed when walking into your office because of the financial paperwork and mess of documents piled high on your desk? As a business owner, you are carrying a load of responsibilities to keep your company running and ensure a positive outcome for your business efforts. Often, some of the small tracking and organizational details can fall through the cracks, resulting in a situation where you are unable to keep up with ongoing responsibilities. One of the best things that you can do is engage an expert team that offers small business accounting services.

What is the current financial standing of your company? Can you run financial reports and review the information with confidence, knowing that all of the transactions are up-to-date? If you are having a hard time finding important documents and you don’t know the true cash position of your business, then the best thing that you can do is invest in small business accounting services. This support will make an incredible difference to help in creating a strong foundation for your company.

Here are a few benefits that you can expect that will be available when you engage the services of a trusted accounting team:

Setting Up the Right Software Solution

We live in a digital age, which means that incredible tools are available to improve your business efforts. No longer do business owners need to track transactions by hand and do the calculations on a ledger. Instead, a good software program can automate the busy work and give you a powerful tool that shows the financial details of your company.

Too often, business owners attempt a DIY approach with software implementation. They are trying to save money by implementing something that was found online. A Google search will uncover hundreds or even thousands of options that can be used for business tracking and financial management. But, which service is the right solution for the needs of your company?

Without professional experience in the industry, it can be hard to understand how these software programs will affect the financial health of your company. Instead, of making the mistake of putting time and effort to set up an ineffective system, the best thing that you can do is talk to an industry professional who can guide your decisions. A small business accountant will evaluate the needs of your company and offer recommendations that will optimize your efforts.

The right accounting software will make it easy to keep track of your bills and invoices. Ongoing tracking keeps your company organized and on track for future success. But it is essential that you find the right system that will work for you, which is why you shouldn’t make this decision without the support of someone who understands small business accounting.

Prepare for Tax Season

Taxes are an unavoidable part of managing a small business. You need to meet the legal requirements established by the IRS and state laws. Even though taxes might seem like a daunting aspect of managing a small business, a good bookkeeping system will make tax season a lot less scary. You will find that your stress levels go down when your company is organized and prepared for the tax burden that lies ahead.

As a small business owner, you shouldn’t spend your time trying to navigate tax laws and other requirements that affect your company. It can be hard enough to identify how tax laws affect your business efforts. Most business owners get a headache just thinking about the time and effort that it will take to read through the small print in the tax laws.

Instead of wasting your time trying to navigate this confusing industry by yourself, it’s worth the investment to enlist the help of an accountant that can offer guidance and recommendations. Hiring an accounting and bookkeeping service is truly an investment that will pay for itself in the future. These services will keep your finances on track so that you can leverage tax deductions and ensure that no details fall through the cracks.

The best solution is to hire an accounting service to handle the tax preparation required for your business. You don’t have to get caught in the paperwork and financial details. Instead, focus on other important tasks to keep your business running and allow your small business accounting services to do the hard work related to tax preparation.

Reduce Your Time Spent on Busy Work

Add up the hours that it will take to track transactions and reconcile your accounts, and you will likely spend hours each week on this busy work. You already have enough to worry about without the headache of sorting through transactions and paperwork! Time is valuable, especially when you are getting a new business off the ground. Instead of dedicating hours of your day to accounting tasks, it is better to outsource these services so that you can focus on other essential tasks that will affect the success of your business.

Engaging in small business accounting services can save you both time and money in several ways. For example, when a good accounting software is implemented, then you don’t have to spend time on manual tracking and calculations. Automation is a great way to minimize the amount of time required for these tasks.

Next, you can engage the services for ongoing accounting and bookkeeping support. Our team can oversee all of the details relating to your business efforts, including payroll processing, invoice tracking, reconciliations, and more.

You should be focusing your time on money-making tasks instead of getting caught in the busy work. Imagine how much your business can expand if your hours are focused on new business strategies and sales meetings instead of sorting through transactions and inaccurate financial reports. Do what you do best, and let the accounting pros take care of the rest.

Effective Cash Flow Management

It can be time consuming and stressful to figure out where customers have neglected their payments. A necessary part of keeping your company running is ensuring that you are current with the collection of accounts receivables. If you can’t keep up with it all, then it can be beneficial to hire the services of an accounting and bookkeeping team.

Implementing a good system means that you can get paid on time. As a result, you will have the cash available when it is needed. It is inevitable that you have bills that need to be paid in the future for overhead costs and business development. If you aren’t collecting on the money that is due, then you will run into cash flow issues.

Not only do you need to have money for the current expenses, but you also need to be thinking about the possibility of slow months in the future. Every industry ebbs and flows throughout the year. It is essential that you have a good cash system in place so you are prepared for any financial changes that might happen in the future. An emergency savings account means that you can keep the company running, even when the income slows down for a season.

Good cash flow practices also help you avoid any financial mistakes that could hurt your company. For example, if you need to lean on debt to keep the business running, then you will be facing expensive interest costs and potential late fees that can really add up. Staying on top of your payments with good cash flow management is a strategy that can save you thousands of dollars each year.

Lean on the Services of a Trusted Accounting Team

Full-service accounting support will make a difference in the success of your company. You can lean on the experience offered by our team and rest assured knowing that we are overseeing the important aspects related to your business finances.

It is nice to let go of the stress and worry about your company financials. Instead of spending your valuable time on tasks that are necessary for financial tracking, it is nice to lean on the services offered by a team that understands your needs.

Small business accounting services are critical to helping you avoid expensive mistakes that often happen when business owners attempt a DIY approach. A little bit of proactive work right now will go a long way to ensuring that you are prepared for anything that might come in the future. Plus, you can let go of the stress that comes with tax laws and understanding financial regulations on a federal and state level.

As you are getting your small business off the ground, it is good to know that you don’t have to carry the financial burden without support. Our team is here to help you with the accounting services that will be a good fit for your company. Reach out to us at Easier Accounting to learn more about the services that are offered and the benefits that are available for your company. We are here to help with any accounting support that is needed for your company: (888) 620-0770.

7 Tips to Maintain Positive Cash Flow for Your Small Business

It doesn’t matter if you are in the beginning stages of a startup or if you have a successful, established business, your long-term success rests on your ability to maintain positive cash flow. Whether you are bringing in $1000 per month or $100,000 per month, you need to be sure that your current business needs are met with cash in the bank.

How is Your Company Doing?

Your cash flow snapshot is a good reading on the current performance of your company. So, take time to review business cash flow statements regularly. This information will help you evaluate the things that are working and things that are hindering your growth. Then, you can use the data to implement changes that will help you reach higher levels of success.

Not only is the goal to avoid negative cash flow or any activities that will hurt your profit margins, but you also need to be looking at the things that will help with expansion and growth in the future. Too often, cash flow analysis is only focused on the current month or quarter. It makes sense that you are evaluating current financial obligations and requirements that are coming up. But you shouldn’t let your current situation overshadow resources that might be required for business development in the future.

It is a learning process as you identify the strategies that support your immediate business needs while preparing for the future at the same time. There’s no question that good cash flow will be required for all of these efforts.

How to Maintain Positive Cash Flow in Your Business

You might conceptually see why positive cash flow is required for your company. But it can be a challenge to identify actionable steps that will have an impact on your cash flow outlook. Here are a few tips that will help you boost profit margins, minimize expenses, and ultimately keep more money in the bank:

  1. Ongoing Spending: How much money is required to keep your business running each month? You should have a clear budget and spending goals to determine how much you need in the bank to pay for rent/mortgage, utilities, payroll, inventory stocking, services, and more. You can’t avoid overhead costs, but there might be solutions to manage the total amount that you are spending every month. Go through the spending report in detail to see if anything can be cut or trimmed down so that you can reduce the amount of money going out the door each month.
  2. Big Purchases: Even if you are keeping up with the ongoing expenses for your business, sometimes the big purchases can be crippling. Whether you are facing a large tax bill or you need to invest in equipment or business development efforts, you can’t sacrifice the payroll cash. Look ahead so that you can anticipate potential costs in the future. Then, shape your monthly saving and spending plan so that the cash is available without the need to dip into credit.
  3. Set Up a Line of Credit: The hope is that you won’t need to rely on credit for your business expenses. But it’s good to have a backup plan in case you get in a pinch. One mistake is to wait until your time of need to run to the bank for a line of credit application. Instead of trying to overcome the problem at the last minute, it’s better to set up the line of credit when you have positive cash flow, and your business is doing well. During this application process, the financial institution will run a complete check on your financial records to determine whether you will be approved for the line of credit. They want to be sure that you will have the cash to pay back the loan, and this information will also affect the loan limits. Securing the line of credit right now could be the difference between keeping your company going in the future vs. not being able to pay your bills because of cash flow issues.
  4. Minimize Interest and Late Fees: It might seem ironic to talk about avoiding debt right after the tip that suggests you secure a business line of credit. But there’s no question that it is harder to manage your cash flow when you are spending high amounts of money on late fees and interest costs. The more debt you accumulate, the more money you will be spending to delay the payoff of that loan. It could result in a domino effect that makes it hard to pay your bills on time, resulting in late-fees being added to your balances. Set up automatic payments and make sure that you always have enough to cover the minimum payments. A better solution is to pay as much as possible every month so that you can pay off the debt and eliminate the loan payments.
  5. Dial in Your Pricing: It might be tempting to offer deep discounts if you are trying to bring more customers through the door. Keep in mind that these discounts could result in problems in the future. Offering discounts to all customers will cut into your profit margins and even devalue your service in the future. See the value in the products and services that are offered to your customers, and avoid the practice of “racing to the bottom” to beat your competitors based on pricing alone. Customers are willing to spend more money when they can see that value and quality are available with a higher price tag.
  6. Stay Ahead of Receivables: You need to follow up on outstanding invoices to ensure that you are receiving payments from your customers or clients. Not only should you keep a detailed list of the money that is owed, but it is smart to put together a follow-up system if these payments are late. When you are collecting overdue money, time is of the essence. Stick to the payment plan and make sure that receivables don’t fall low on the priority list if you are distracted by other business management tasks.
  7. Boost Cash Inflow: Are you receiving an inflow of cash every day or week? Depending on your business model, the timing of customer payments might vary. You need to make sure that you are making sales consistently to receive the money that will keep your company running. It all comes down to the numbers. Look at the target amount of income you want to receive each month. Then do the calculations to see how many sales need to be made on a monthly, weekly, and daily basis. Finally, determine the most effective activities to help you connect with paying customers so that you can close enough deals to meet the needs of your company.

Cash Flow is More than Just Paying the Bills

While it is important to ensure you can pay your bills and obligations, cash flow is about much more than just paying for these ongoing expenses. Creating good cash flow will set you up to make the spending decisions that help your company grow. When you have extra cash in the bank, you have the opportunity to invest in marketing that brings in new customers. You can also put the extra money towards business development and product research to improve the products and services that are offered. Additionally, good cash flow is essential so that you can maintain the right amount of inventory, so these products are always on hand when customers are ready to buy.

Finally, don’t overlook the peace of mind that comes when you know that there is money in the bank. You can’t put a price tag on the lower stress levels you will experience when you have an emergency savings account in place for a rainy day. Good cash flow strategy and management could be the difference between business success and failure, which is why this task should be at the top of your priority list.

Keeping up with Accounting and Bookkeeping

The foundation of an effective system for cash flow management should be based on the right bookkeeping and accounting strategies. You need to track the transactions that are moving in and out of your bank accounts. Data-driven decisions are important to help your business flourish in the future.

As a business owner, do you find it challenging to keep up with the accounting and bookkeeping tasks that are required? You are carrying a lot of responsibility, so it’s understandable that you find it difficult to stay consistent with these efforts.

Instead of stretching yourself thin with too many responsibilities, consider the benefit of bringing in a good outsourced accounting team. These services will improve your financial systems and help you avoid potential cash flow issues. Working with an experienced financial team is one of the best things that you can do to support your business goals.

For more information, reach out to us at Easier Accounting. We are here to help with anything that you need for accounting, tax preparation, financial advice, and more. Call today: (888) 620-0770.

Need a Clean Slate? How to Start Fresh with Business Systems

Are you facing troubles in your business and you feel like it’s too late to make the necessary changes? Or maybe your business is doing fine, but you have hit a plateau and can’t reach the higher levels of success that you desire? Regardless of your current situation, you need to consider how your current business systems are contributing to the growth and success of your company.

You can dream big and hope for great things in the future. But nothing will change unless you implement systems that impact your daily, weekly, monthly, and annual business practices. It’s time to evaluate what is working and what needs to be corrected. Then this information can be used to help you implement the business systems that will increase the opportunities in the future.

Starting Fresh or Adjusting Current Business Systems?

Analyze your current business systems to determine where you are starting. Can you identify practices that are helping your company grow? Where are the areas that are just cutting into your profit margins? Sometimes, current systems can be adjusted so that you can tweak the ongoing practices to leverage higher results in the future. Other times, it is best to scratch your current practices so that you can start fresh with a new system.

You need to have a clear picture in your mind of where you are going and what you would like to create. At the same time, you also need to determine the options that are available to leverage what is already working. If you know that certain activities or tasks always bring in more customers and sales, then spend more of your time, efforts, and resources on those things. On the other hand, don’t be afraid to walk away from long-time systems that aren’t providing the same results you received in the past.

Business Systems that Need to be Evaluated

Here are some key points that should be evaluated and reworked to help you achieve better results in the future:

  • Clean Your Workspace: The comfort and appearance of your office and workspace have an effect on your productivity throughout the day. Have you created a space that gives you the inspiration and motivation to do the work that needs to be completed? Don’t let your office become the dumping ground for everything that doesn’t have a place in the building. Remember that physical clutter results in mental clutter, which can distract you from the tasks that will help your company grow. Prioritize the space where you are working, where your employees are spending their work hours, and digital systems as well. For example, you should have business systems in place with digital folders where files are stored so that you can find them when you need them. A clean work environment means you will avoid precious work hours digging for paperwork or items when you need them.
  • Reset Your Mindset: It is important to understand that your mindset creates the foundation of your business success. If you are caught in negative thoughts and dialogue, then it will have an impact on your daily actions… which affect long-term results. Spend time reading business books, listening to mindset podcasts, and investing in training that boosts your intellectual thinking. A little bit of mindset effort can have a significant impact on the results that are possible in the future.
  • Create a New Vision: You don’t need to wait for the start of the New Year to create an upgraded vision for your company. If you want to change your results, then you need to know where you are heading. Creating a vision for your business will help you in moving in the direction that you desire. Setting this intention and sharing the vision with your team can help everyone work together in a way that will maximize the progress and success that is possible. Dream big, then start acting on the smaller tasks that will turn those dreams into reality. Not only do you need to identify the goals for your company, but it is also smart to focus on “goal planning” that outlines the action plan needed to achieve those goals.
  • Honor the Business Cycles: Another thing to consider is that it is natural to have ups and downs in your business efforts. Most industries have slow seasons and busy seasons. During the busy times of the year, your focus is turned to the immediate tasks that are required to keep up with the current demand. Don’t overload yourself with things that aren’t essential for your present needs. When things start to slow down, the timing might be right to invest in new business systems that will leverage your success for the future. Recognize the way these cycles work for your company so that you can find the best times to work on changes that are needed.
  • Don’t Be Afraid to Say “No”: Agreeing to every opportunity that comes along could be detrimental to your progress. As you identify your new business vision and goals, this information can be used to help you identify the areas where you should be saying “no” to various opportunities and people. If your schedule is filled with many obligations and tasks that don’t contribute to your business growth, then your time will be wasted on low priority tasks. Give yourself the opportunity to create a clean slate by letting go of the things that aren’t serving your or your business.
  • Marketing Efforts: One of your highest priorities should be focused on the acquisition of new customers. When you are running a business, new customers will generate the cash flow and network that support the growth of your company. But marketing can encompass many channels, sometimes making it feel overwhelming. Consider your industry, where your target customers are spending the time, and the best way to use your marketing budget to connect with the right people. It can be smart to implement tools such as Facebook marketing, building an email list, and Paid Search Marketing.
  • Filing and Paper Systems: Do you find that your desk is buried in stacks of paperwork? Too much paperwork is not only bad for the environment, but it can also have a negative impact on your productivity. Consider how much time you are spending on paperwork management, then look for systems that will help to cut down on the papers that are moving through your office. Going paperless might be the perfect clean slate to reduce your time commitment and stress levels. A variety of tools can be used if you are ready to go paperless, such as expense trackers, accounting software, task management tools, online contract systems, calendar, and time tracking systems, and more.
  • Leverage Automation When Possible: There is no reason to spend your time on manual tasks when technology is available to automate some of these things on your to-do lists. Software programs can be used to automatically handle things that previously took hours a week to complete. For example, using the right accounting and bookkeeping software means that you don’t have to track every transaction that moves through your company manually. Instead, you can let the software oversee most of the tracking and calculations. These platforms are powerful because they free up your time to work on business efforts that are most effective to help with the growth of your company.
  • Outsource Essential Services: Finally, don’t overlook the leverage that can be gained by outsourcing services that are needed. You don’t have to do everything on your own. You can find opportunities to get top-notch help at affordable prices. Using outside help minimizes the tasks that are on your to-do list each week. Plus, your business systems can be improved when you are using the knowledge and expertise of these professionals to apply better business systems for your company. Why reinvent the wheel when an outsourced team has already found the best practices to apply in your industry? You can outsource accounting, bookkeeping, office cleaning, marketing, legal paperwork, and more.

Being Open to Change

One of the best skills you can have as a business owner is being open and ready to embrace change at the right time. If you are willing to make adjustments along the way, then you can shape your company for incredible growth in the future.

There are times when these changes result in a massive overhaul of business systems so that you can overcome poor habits and improve the things that matter. Other times, small adjustments can have a significant impact on the results that you are achieving.

Is it time to change your accounting and bookkeeping systems? We are here to assist. Our team specializes in small business accounting, and we’d like to support your business systems and goals. You are welcome to reach out to us at Easier Accounting to learn more about the financial services that are available. Our expertise is in services for startups and small businesses. Call for more information: (888) 620-0770.

Commercial Lending: Everything You Need to Know about Business Loans

Most people agree that it is easy to get a credit card or personal loan. The consumer culture in our nation has created an environment where financing for everything from a shopping spree to real estate is easily accessible for the majority of the population. Consumer debt is rising and it is common for people to feel that debt is a normal part of living. Even though personal loans are easy to come by, it might be a bit tricky if you are looking at options for commercial lending.

There’s no question that you need to manage the cash flow for your company. As a business owner, it can be a challenge to ensure that the money is available at the right times throughout the year. If you are struggling with cash flow right now, then you might be looking at options for a business loan to help you get through a dry spell.

How Will You Use a Business Loan?

What are the reasons why you should consider a business loan? Commercial lending can be beneficial for a variety of expenses:

  • Buying a real estate property for office space
  • Investing in more inventory of the upcoming busy season
  • Purchasing equipment that is necessary for the office or storeroom
  • Preparing for the future in case the cash is needed unexpectedly
  • Construction or remodeling costs
  • Business acquisition
  • Start-up expenses for a new company

These loans can be of various sizes, depending on the needs of your company. If you find that you need a business loan, then it is essential that you choose a reputable lender and understand the financing terms before jumping into the agreement. A poor choice with your business loan could cause financial stress and strain on your company in the future.

Don’t Wait for Commercial Lending

It is common for business owners to hold off on commercial loans until they are in a critical time when the cash flow is needed. But there’s no reason to wait for the application! Cash flow ebbs and flows depending on the season and economic changes, so you need to be sure that you have the money available before you reach a critical situation.

The timeframe for commercial lending takes a little longer compared to personal loans. Additionally, you need to have a good financial profile to be approved for the loan. For example, if your business is already burdened with debt, then it might be difficult to get approval on your applications. Instead, apply for the financing when your business is in good financial health so that the credit is available in the future when it is needed.

The right financing can be the saving grace that serves your business needs in the future. It is important that you are working with a great accountant every step of the way, so there are no surprises with cash flow, future costs, and more.

A Few Things You Need to Understand about Business Loans

The best thing that you can do is learn about your options so that you can get the financing that is needed. A little bit of information can go a long way to help you avoid common problems that might arise with financing. Here are a few things that you should keep in mind:

  • Time Frame: It usually takes a little longer to receive approval for a business loan. Even though most consumers can be approved for a credit card or line of credit on-the-spot, the business loan application process is a little more involved. Be prepared so that you have plenty of time to prepare for future financing needs. Sometimes, commercial lending can take as long as 60 to 90 days until the loan is closed and the money is available. The complexity and timeframe vary depending on the type of loan that you are getting.
  • Complicated Application: This application process is a bit more complicated than filling out some paperwork and waiting for approval. Be ready for an extensive screening and piles of documentation that might be required. Common paperwork requests include several years of tax returns, AR/AP reports, financial statements, and documentation for collateral that will be offered. You might also need to show a business plan so that the lender can understand how the money will be used for business needs.
  • Payback Ability: As with all types of financing, the lender wants to see that your company will have the ability to pay back the money that is provided. Your lender will be evaluating your cash flow to determine how you will be able to handle the required payments. The Debt Service Coverage Ratio (DSCR) will be evaluated, which looks at the operating income of the company as well as the current and anticipated debt obligations that need to be paid in the future.
  • Financing Fees: Anytime commercial lending is offered, you can expect that fees will need to be paid. Ask about the fees that need to be covered up front, or if these costs will be bundled into the loan. Understanding the fee structure will help you know the amount of money that you are spending for the financing that is offered. Don’t forget to ask about pre-payment penalties in case you decide to pay off the loan early.
  • Collateral Requirements: When you are getting a personal credit card, there isn’t usually a need to offer collateral. But, the lender often requires collateral for bigger business loans. If you are providing collateral and the applicable documentation, it is common for the lender to require that the loan is 80% of the value of the collateral. So, you will need to come up with 20% cash before you can be approved for the financing. Banks calculate this Loan to Value (LTV) to minimize risk in case you default on the loan.
  • Structure of the Loan: The timeframe and payment requirements vary depending on the type of loan that is acquired. It is important that you understand your options and compare the payment details before settling on financing for your company. For example, some loans are less than 5 years and have an aggressive payment schedule. Other loans can be spread out over 20 or 25 years if needed. Additionally, you should look at options for fixed or revolving loans based on the way the money will be used.

Types of Business Loans

What type of financing is needed for your business requirements? These are a few options that you might consider:

  • Line of Credit: Small businesses often obtain a line of credit so that funds are available on an as-needed basis. Usually, there is a cap on these funds. This type of loan can be an excellent solution for managing unexpected costs and ongoing cash flow.
  • Working Capital Loan: Sometimes daily operations need to be financed, and you might consider this type of loan for these anticipated costs. These loans are ideal when you need to manage the fluctuations that occur due to seasonal changes or other variables that affect your cash flow throughout the year. This type of loan is usually unsecured.
  • Small Business Loan: Whether you are getting a start-up off the ground or you are looking at options to expand, a small business loan might be the right solution. The structure of the loan will vary depending on the lender, and might be secured or unsecured. Interest also varies depending on the terms of the loan.
  • Small Business Administration Loans: If you are searching for a low-interest loan, then don’t overlook the benefits of a Small Business Administration (SBA) loan. The SBA guarantees the amount, making it possible for the lender to offer the most favorable terms when it comes to interest rates and repayment schedules. These loans are usually between $30,000 and $5 million.
  • Accounts Receivable Financing: This money is available based on the amount of Accounts Receivables on your books. When your customers send payments, then that money goes to pay down the AR line.
  • Business Credit Cards: Sometimes the simplest solution to qualify for a loan is by getting a business credit card. But, you need to use this strategy as a short-term solution because the credit cards usually have high interest rates and can pose a liability to your company. If you are going to spend money on a small business credit card, then look for perks like cash back or 0% interest for 6 to 9 months. These bonuses will help to offset the cost of the card.

Do you have questions about your business cash flow or financing options? At Easier Accounting, we’re here to help you create the right financial strategy for your company. If you are considering commercial lending, then we can help you with the reporting and documentation that is needed so that you can qualify for the financing that is required.

Our team specializes in ongoing services for small business accounting and bookkeeping. Easier Accounting is a leader in the industry and offers flexible packages to accommodate the needs of every company. Call today to see how we can help with your business efforts: (888) 620-0770

Ready for Black Friday? Tips to Boost Small Business Sales

If you are in the retail industry, then the holiday season is the perfect time of year to boost your sales and optimize profits for the year. Shoppers have a buying mentality right now as they are searching for gifts to share with friends and family this holiday season.

Often, businesses take advantage of Black Friday and Cyber Monday as a way to lure in more shoppers with time-sensitive bargains. Whether you have a brick-and-mortar store or your business is run online, this time of year shouldn’t be overlooked. Right now is when you need to start the preparations to be sure that you are ready for the influx of sales that will come from interested customers.

Keep in mind that you don’t have to sell physical products to take advantage of Black Friday shopping. Shoppers are looking for all types of bargains, which means that it might be a great time to offer discounts or packages for your business if you provide services or digital products.

Think Outside the Box to Catch People’s Attention

While Black Friday can be hectic and busy, your company doesn’t have to get caught up in the noise of the holiday shopping season. Instead, look for ways to make your offerings stand out from the competition. Here are a few options to help you think outside the box so that you can set your company apart from the rest in the industry:

  • Don’t Fight the Early Morning Rush: As a small business, you shouldn’t be trying to compete with the big-box stores by starting your sales before the sun comes up. Most shoppers will head to the big-box stores in the wee hours of the morning (or even on Thanksgiving evening). You can bring in more interested shoppers by starting your sales later in the day. Everyone will be done with the crazy morning rush and ready to move onto your special promotions by noon. Communicate your sales hours in advance so that your customers can arrange their shopping schedule to match. You might be surprised to see how many people are happy to know that they don’t have to set an early-morning alarm to access your Black Friday sales.
  • Longer Holiday Hours: Regardless of the time that your store opens in the morning, consider extending evening shopping hours. Some people like to head out for holiday shopping after spending the day with family. So, extended evening hours could bring in more shoppers that wouldn’t have visited your business otherwise.
  • Encourage Gift Card Sales: How often do customers walk out of the store empty-handed because they were unsure about the right gifts to purchase? Instead of letting your customers get stuck in analysis-paralysis, offer a simple solution: gift cards. It has been found that gift card sales always go up during this time of year. You need to be sure that you have gift card options available and on prominent display when customers walk through the doors for the Black Friday sales.
  • Start a Marketing Campaign Right Now: Why should customers choose your products or services over other options that are available? Start a marketing campaign right now to show the reasons why you are the go-to resource for holiday shopping. In this campaign, highlight the reasons why your business is better than the competition. For example, do you have handmade items, locally-sourced products, or limited-edition options that are hard to find? These hooks are often more effective than the race-to-the-bottom with discount prices.
  • Don’t Offer Unsustainable Pricing: Be strategic with the way the holiday sales are structured. The goal should be to increase conversions. But, don’t boost sales at the risk of harming your profit margins. While it is important to offer deals to bring people in the doors, you should be strategic with the structure of the sales so that you don’t take a hit. The most effective way to ensure that your profit margins are still built-in is by offering product bundles or quantity discounts. Or, offer deep discounts on old inventory that needs to be moved.
  • Bonus Services: What is an extra service that could be offered to bring people in the door? For example, you might go the extra mile by offering free gift wrapping on Black Friday or passing out balloons for children. Or, have stocking stuffers that are complimentary for purchases over a certain amount. Consider the extra services that your customers would value. Don’t forget to share these details in your marketing messages that are shared via email and social media.
  • Schedule an Event: Plan Black Friday to be a day when there is a party in your store. Offer snacks or drinks, play fun holiday music or bring Santa Clause into your store. Send out an email and share these happenings on social media so that your customers know what to expect when they visit your store.
  • Incentives for Social Media: If you are trying to boost social media engagement, then let your customers help with the difficult work. You can share great content on social media to highlight the Black Friday sales that are available. Another option is to add an incentive for customers who share on social media. For example, a share on Facebook gives the customer access to a special discount on the products they are buying. Always include the popular hashtag #blackfriday and a hashtag that is unique to your company.
  • Product Bundles: Gift bags or baskets are always a great solution when people are looking for fun, creative gift ideas. Instead of selling items individually, look for logical ways to package your products. This strategy is an effective way to upsell people to a higher price point. Plus, people love the gifts that are ready to go without additional work. If you don’t have pre-designed packages, consider offering a discount when customers choose three items that are related.

Step Up Your Digital Presence

Promoting your Black Friday sales on social media is a good way to share information online. But, more and more customers are turning to online shopping options. People love the idea of completing their shopping lists without leaving the comfort of home.

As a small business, you can take advantage of Cyber Monday and/or Small Business Saturday. If you don’t have online shopping options available, then right now might be the perfect time to expand your offerings to include e-commerce sales so that you can capture a larger portion of the market.

Offer coupons that are exclusive to Cyber Monday or Small Business Saturday. Or, you could also capture the people who procrastinated their Black Friday shopping by offering sales that are available through the first few weeks of December.

Administrative Prep for the Holiday Season

You might be busy stocking the shelves and working on holiday marketing and promotions. But, don’t overlook the importance of keeping up with the necessary tasks that need to happen behind-the-scenes for your business. For example, right now is an excellent time to get caught up on bookkeeping and accounting if you have been slacking on these tasks.

Procrastinating the financial reporting, auditing, and other business paperwork that needs to be handled means that these essential items will just build up through the holiday season. There’s nothing worse than reaching the end of the year to discover that you have a huge task list of unfinished business that should have been addressed for your company.

Make sure that your payment processing system is ready for the increase in sales. Upgrade accounting and bookkeeping software so that you don’t run into glitches during the busiest time of year. Assess inventory and redirect cash flow if needed so that you have plenty of product to offer when customers are ready to buy. Evaluate the employee schedule so that you have plenty of help available during the busiest times of the season. These small details will go a long way to help you increase sales, improve customer experience, and optimize the results that are available for your company.

Outsourcing the Services that are Needed

A little bit of work right now will ensure that you aren’t overly stressed as you reach the end of the year. If you don’t have the time or desire to work on these tasks by yourself, then it is the perfect time to bring in an industry expert for assistance.

For example, an accounting team can get your books in order so that you are ready to close out 2018 and start 2019 on the right foot. It is important that you have a good financial system in place so that the growth of your company isn’t hindered by the work that needs to happen behind the scenes. Professional accounting services are essential to assist with tax strategy, cash flow, and more.

Easier Accounting is here to assist with your small business efforts. If you need financial advice or you are looking to implement an improved financial strategy for your company, then we invite you to call to learn more about the services that are available: (888) 620-0770

Profit Before Taxes: What it Means for Your Small Business

Now that you’ve started a small business, are you keeping up with the numbers that shed light on the profitability of your company? Not only do you need to evaluate cash flow, but it is also important to look at the reports that show the overall health of the company. Understanding the bigger picture is essential so that you can adjust your business strategy. That’s why you need to prioritize your understanding of profit before taxes.

It is exciting to work on product development and tasks that have a direct impact on business growth. On the other hand, it is common for business owners to feel like financial reporting and tax strategy is boring. But, it is essential to understand the importance of these tasks and how they will affect the future success of your company.

If you want long-term success for your business efforts, then you shouldn’t overlook the reports and numbers. Luckily, you don’t need to manage these details without support. Tap into the experience of an experienced accounting team to learn more about your options and the services that are available.

What is Profit Before Taxes?

What does it mean when your accountant is talking about profit before taxes? This term, sometimes referred to as Earnings Before Taxes (EBT), refers to the amount of money that is brought in by your company before paying for taxes and interest payments.

Even though this number doesn’t include tax burden and debt payoff, it does incorporate the overall business expenses that are used as write-offs. For example, there are many costs that are accrued throughout the year for overhead expenses, product development, marketing, and more. These costs are deducted from the money that is brought in. Then, taxes and reports are calculated based on the gross profit that is calculated.

The profit number can be found in your Profit and Loss statement. Or, you can talk to your accountant for a detailed explanation about how the number was calculated.

Why You Need This Information

Why is it necessary to know your earnings before taxes? Having a clear picture of the financial success of your company is essential so that you can make the right decisions that impact the growth of your company. Not only is your profit before taxes number needed for tax calculations, but these details might also be necessary when you are bringing on investors or applying for business credit.

Investment analysts will request specific information about the financial trends for the company. These details can help the analysts determine the operating performance of the business and possible financial trends going forward. If you can show the potential of your business, then it makes it easier to get the angel investing funds that might be needed to help your company grow.

This type of analysis is essential at specific points of your business progression. Often, the numbers are used to gain an objective analysis for the current trends and possible growth in the future. Additionally, your accountant will use these details when evaluating the tax burden that needs to be paid in a given year.

Applying for Business Credit

There are often times when business owners need credit to keep the company running. If you are applying for credit, then the lender will complete a credit risk analysis. The lender wants to ensure that your business will have the viability to pay back the loaned amount in the future.

Additionally, the financial health of your company might impact the interest rate that is offered for the loan. If the lender can see that your business is a good risk for the investment, then it is easier to get a low interest rate. But, if your company is already bursting at the seams with debt and financial obligations, then the lender will see the risk and probably increase the interest rate accordingly.

Financial institutions want to see that you can repay your obligations without harming your business or operating profits. When the cash flow is too tight, as shown in the financial reports, then it is a sign that the loans might default in the future.

Problems with Your Business Profits?

You might feel the pinch of cashflow as you are working through the month. But, it is hard to understand the full picture without looking at the financial reports. If you are dealing with low profit margins, then your business could be facing some serious consequences:

  • Growth is Limited: It is hard to encourage growth in your company if you don’t have the cashflow to keep things afloat. This poor cash position means that you are lacking in the money that is needed to reinvest into the company. If the profits are low and you don’t have the cash available, then how will you reinvest for inventory replacement and product development? These problems could be the nail in the coffin that prevents you from competing with other companies in the industry.
  • Economic Changes Will Have a Bigger Impact: The economy is always in flux, which means that every business owner should expect financial changes in the future. When the inevitable shock happens to the economic growth of the industry, poor profit margins will have a drastic impact on your company. Not only do you need to maximize your profits during the good months, but you also need to save for a rainy day with an emergency fund.
  • No Options for Business Financing: Financial reports that show poor profits for your company make it hard for you to get the loans or finances that might be needed. These reports can impact lending from banks and credit unions. At the same time, investors will be hesitant to provide the funds if they can see the potential for failure due to poor profit margins.

Just because you can see that your business is reporting low profit before taxes, doesn’t mean that your company is going to fail. Instead, it is a sign that you need to make a few changes. Also, don’t proceed without enlisting the assistance of an experienced accounting team to help with your financial management. It is essential that you tap into the expertise that is offered. Then, use this advice to put your company back on track for the future.

Tips for Boosting Profit Before Taxes

What should you do when you learn that your business has low profit before taxes? Here are a few things that should be evaluated to change the trajectory of your company:

  • Product Pricing: What does it cost to produce the products that are sold? How much profits are available for each unit? Not only do you need to evaluate the product pricing, but you should also look for ways to reduce the upfront costs for product development. You might not be charging enough, or it might be time to eliminate waste or reduce expenses. Look for options to source cheaper goods. Or, you might be able to cut payroll expenses by outsourcing some of the services that are needed instead of hiring more full-time employees.
  • Overhead Costs: Look at every cost that is coming through for overhead expenses. You have a set list of payments that need to be sent each month for anticipated costs. Sometimes, these expenses are higher than necessary and cutting into your profit margins. Consider options to cut unnecessary costs or reduce the amount that you are paying. For example, you might be able to move to an office location with lower rent payments. Or, call the phone and internet provider to see if any cheaper packages are available.
  • Leveraging Tax Deductions: Also, keep in mind that this profit before taxes calculation includes all of the costs that are being used for business management and ongoing costs. It is nice to leverage tax deductions in the form of expenses that are being used. At the same time, you also need to understand that spending the money will have an impact on the profits that are recorded on paper.

The most effective thing that you can do is get personalized advice from an accounting professional.  As a business owner, you don’t need to be an accounting professional. But, you do need to be familiar with the way the numbers work and how they impact your business. You can consult with your accounting team to learn more about the current trends. This information is very important when you are making big decisions that affect your finances.

Tapping into outsourced accounting services is one of the best things that you can do to ensure that you are staying on track for the future. The services of a good accounting team might be the difference to help you avoid common financial pitfalls that are faced by business owners.

If you are looking for support with your small business finances, then we are here to help. Contact us at Easier Accounting to learn more about the accounting services that are available. We specialize in small business accounting, giving you access to team that is leading the industry. Call today to learn more: (888) 620-0770

Accounting Advice: How to Cut Expenses for a Start-Up Business

Starting a new business is an exciting adventure. You are moving forward with big dreams and hopes for a better future, putting in the effort that is needed to build a company that will succeed for many years. Whether you are taking over a family business or moving forward on a passion project, it is essential that you have a good business plan in place to set yourself up for success. You need to consider the money that is coming in, as well as options to cut expenses.

Moving to a Positive Cash Flow

Costs are inevitable when you are pursuing business efforts. It doesn’t matter if you are building a local office or running a home-based business out of your garage; money will be needed for some up-front costs. In the beginning, you will be spending more money than you are making, especially if you need to put cash into inventory or other important setup costs.

There’s nothing wrong with spending money on these business expenses. Keep in mind that this cash is an investment to build your company for the future. There’s a saying in the business world: “It takes money to make money.” It’s true that you need to have some upfront cash to get your company off the ground.

But, just because you are burning through your cash reserves in the beginning, doesn’t mean that you shouldn’t be careful to turn things around as quickly as possible. The goal is to make your company profitable right away so that you can have extra money in the bank, instead of spending everything on your business efforts.

Once you move to a positive cash flow, meaning you are bringing in more money than you are spending, then you will have the option to re-invest and grow the company. Or, you can pull some of those profits to enjoy the benefits of your labors.

Two Ways to Manage Cashflow

There are two things that you need to consider when you are working to manage cash flow:

  1. Bring in more money
  2. Cut expenses

Business owners are always focused on bringing in the income that will keep money flowing into the bank. Even if you have strong earnings every month, your business will struggle if you don’t stay ahead of the expenses at the same time. So, you need to evaluate the money that you are spending to identify areas that can be addressed.

Yes, it is important to look for ways to increase your incoming cash. But, don’t overlook the importance of managing your expenses as well. A good accounting team can assist with these efforts.

Cost-Cutting Ideas to Reduce Small Business Spending

Start by evaluating the money that you are spending. Categorize your spending into transactions that are necessary and transactions that can be cut. You might need to change your thinking a little bit to look at your spending with new eyes.

Here are some of the easiest, most effective ways that you can cut your business costs:

  • Secondhand Furniture and Equipment: Why pay for new materials and supplies if you can save a bunch of money by choosing secondhand items? If you need a new desk for your office, you can go to the local furniture store and pay thousands of dollars for the right desk. Or, you can skip paying retail and look for deals on Craigslist or other online marketplaces. In many circumstances, you can save as much as 50 – 70% by choosing secondhand items. Use caution if you are buying electronics though… computer technology is moving fast, and you might be able to avoid a lot of problems by buying new.
  • Rent or Mortgage Costs: A rent payment can be one of the most expensive bills for small businesses. Do you have a local office in a high traffic area, but most of your business is completed online? There’s no reason to pay the surcharge for a premium office space. Consider moving to a different part of town where the rent costs are lower. Yes, it will cost money to move and it takes a lot of effort. But, the rent savings can add up over time. Better yet, look for options to buy a building and rent out a portion of the space to other businesses. These rent payments can help you pay off the mortgage, creating a valuable asset for your company.
  • Utility Expenses: Ongoing utility expenses offer another potential area where you could be saving money. Get creative to see if there are ways that you can reduce utility costs. For example, you might be able to drop your landline and use a VOIP phone number instead. Invest in energy-efficient appliances and switch out the lightbulbs. Install a smart thermostat that will manage climate control throughout the day. Call the internet provider to see if there are options to reduce the amount of money that you are spending on your business package. Sometimes, a few questions to a utility provider can go a long way to bring the ongoing costs back down.
  • Assess Inventory: Are you storing a lot of inventory that won’t be needed for a while? Not only does extra inventory cost money because of the expense of buying the products. But, you also need to spend cash on the warehouse space that is needed to hold everything. Look for lean business options to minimize your inventory while ensuring that you always have product on hand when your customers are ready to buy.
  • Bid Out New Projects: Instead of assuming that you need to hire more employees, consider the option to talk to multiple contractors to get the best price on services that are needed. This bidding process will help you minimize costs and maximize the services that are available. Seeking out multiple bids is essential so that you can see if your preferred contractors are overcharging for the services.
  • Offer Telecommuting Options: As the business grows, it can be hard to maintain the office space that is needed for the expanding team of employees. Instead of moving into a bigger office, look for options to share the office space more efficiently. You can invite employees to telecommute, helping to reduce the number of people that you are managing in the office each day. This option allows the desks to be shared and reduces the amount of space that is required for employee housing. At the same time, employees will be happy that they can avoid commuting costs.
  • Go Paperless: Paper waste can cost your company a lot of money. Not only do you need to pay for the cost of the paper reams, but you also have expenses for the printing as well. You will spend money on the cost of buying a printer, paying for ink cartridges, and ongoing maintenance as needed. Plus, many companies spend money on recycling and shredding services for old paperwork. These expenses can be reduced by keeping digital records instead of filing printed paperwork.
  • Pay Off Business Debt: Business debt can make it hard for you to keep up with cash flow. Not only do you need to make the payments on the costs that are due, but you are also taking on a lot of expenses for the interest costs. How much are you paying every year in credit card interest? If unexpected costs pop up, then it is common to put those expenses on a credit card. Unfortunately, the interest expenses will really add up, potentially costing your company thousands of dollars a year in avoidable costs.
  • Save for a Rainy Day: It is essential that you set aside cash for the future. This emergency savings account will help you pay for taxes and anything else that might come up unexpectedly. There are always times when you need to dip into the bank account. Make sure that you have money set aside so that you can avoid running up the business credit cards.
  • Maximize Tax Write-Offs: As a small business owner, many things can be used as a business write-off to minimize tax burden. You could save hundreds or even thousands of dollars by using the right tax strategy. Maximize these tax write-offs so that you can minimize the amount of money you need to pay at tax time. The best thing that you can do is hire the services of an experienced accounting team who can help with your tax strategy.

As you can see, there are many ways that you can be creative with your business spending to reduce expenses. If you need assistance, then make sure that you have the services of an experienced accounting team. We can assess your spending habits and provide recommendations that will help to minimize expenses in the future. Financial expertise can offer a valuable way for you to level-up your business efforts and reach higher levels of success.

For more information about small business accounting services, you need to talk to our team at Easier Accounting. We understand the financial requirements that are needed to run a small business. Our team is here to assist with anything that you need: (888) 620-0770

FAQ about Outsourced Accounting and Bookkeeping Services

It is common for business owners to have a long list of questions when hiring outsourced accounting or bookkeeping services. If you are bringing in outside help to manage your business books, then it makes sense that you should hire someone you can trust. Ask questions before you hand over financial details so that you can learn more about the experience and services offered by the accounting team.

Easier Accounting is an accounting firm for both small and large businesses. We are always available to answer your questions. You are welcome to call anytime if you want to learn more about improving the financial future for your small business (888) 620-0770.

These are some of the questions that we often hear from business owners who are considering the services from an outsourced accounting team:

What Services are Available?

We offer a wide range of services to match the needs of each client. Instead of using a cookie-cutter approach for every project, our goal is to customize the services according to your preferences. So, we will ask questions about your business and systems that you already have in place. Then, we can make recommendations that align with your requirements.

These accounting and bookkeeping services include:

  • Monthly bookkeeping
  • Tax consulting
  • A dedicated accounting team
  • Audit support
  • Personal tax preparation
  • Business tax preparation
  • Annual tax planning
  • Payroll
  • Depreciation schedules
  • 1009-M creation
  • Conversion from accounting systems
  • Custom financial reports
  • Custom invoice layouts
  • And more!

The best thing that you can do is schedule a complimentary consultation to learn more about the services that are available. We will discuss your needs and offer recommendations so that you can choose the services that match your preferences.

How Will My Business Benefit from Outsourced Accounting Services?

Our job is to make sure that you have all your ducks in a row. We will evaluate your financial plan, keep up with ongoing tracking and reconciliation, and ensure that you are ready for tax payments and filing. These services will help you stay up-to-date regarding the financial health of your company. You won’t have any financial surprises at the end of the year when you are working with an experienced accounting team.

This information improves the likelihood that you can manage your cash flow and keep up with future expenses. Plus, you can refer to these reports when making big financial decisions for your company. Having a clear picture of the financial health of your business helps you to make educated decisions about future expenses, business development, and growth.

Why Outsourced Services instead of Hiring an Employee?

You have the option to hire an employee to help with bookkeeping and accounting. But, make sure that you understand the financial burden of bringing in another employee. Not only do you need to pay the full-time salary, but other associated costs include benefits, office equipment, office space, employment taxes, payroll, and more. These costs can add up!

Learn about the benefits of outsourcing, and you will see that you want access to the financial skills without taking on the burden of another employee. You can have your cake and eat it too… top-notch accounting expertise without bringing another full-time employee onto your team.

How Can You Manage the Books if You Aren’t in My Office?

Technology has opened up a world of possibilities for remote services. We don’t need to be in your office to look over your books. Instead, the work is performed remotely using a cloud-based software. We can view real-time information about your financial transactions, and work on financial reports and reconciliation from any location.

You can also tap into these online resources from anywhere. Even if you are gone on a business trip or out of the country for vacation, you will have ongoing access to the most current numbers for your company. This information can be accessed on your computer from anywhere in the world!

Don’t worry about security, because we always use secure methods when accessing your financial records. The could-based software is protected, offering a safe place to store your information.

Why is Cloud-Based Software Better than In-Office Accounting?

Manual accounting increases the risk of errors in the transactions. If you need to type in each transaction, then there is a possibility of missing keystrokes or typos. Instead, we have found that it is more effective to integrate a software program that imports transactions. Then, our team will review every transaction to detect potential problems.

Keep in mind that cloud-based accounting reduces the risk of losing all the financial information for your business. If your files are kept on the hard drive of your computer, then you could lose everything if the computer crashes. Or, paper copies of the records could potentially be ruined if a flood, fire, or natural disaster damages your building.

Why Shouldn’t a Small Business Owner Use a DIY Approach with Bookkeeping?

As a small business owner, don’t be fooled into thinking that you can handle the bookkeeping without the expertise from a financial professional. Most business owners are pulled by multiple responsibilities that include employee management, inventory, business development, networking, and more. You shouldn’t be wasting your time on busy work like bookkeeping and transaction auditing.

Hiring an outsourced accounting team will free up your time so that you can focus on more important tasks. You can turn your efforts to grow your business while the experts handle the financial details. As a result, you will find it easier to boost future success because you aren’t getting cause up in the busy work.

What are the Dangers of On-Site Staff Handling the Accounting and Bookkeeping?

You have the option to hand some of these responsibilities to your current staff. But, you need to evaluate the skills that the person has to offer, as well as the potential risk that could affect your company. For example, an inexperienced secretary handling the bookkeeping could result in missed transactions, mistakes, skipped reconciliations, and more. If the numbers are off, then it will have a domino effect to impact your financial reports and cash flow.

Another issue that you might face is potential fraud within the company. If you only have one employee managing the financial details, then transactions can be adjusted, and you won’t know the difference. Avoid theft and other problems by hiring a third-party outsourced team who can offer multiple checks and balances to reduce the risk of theft and fraud.

Can You Help with Taxes and Payroll?

We offer more than just basic bookkeeping and transaction management. You can expect full-service accounting solutions from our team. The monthly bookkeeping services are built around your annual tax plan. We will look at the numbers and help you put together an effective strategy to maximize write-offs and help you prepare for future tax filings.

At the same time, we can also offer ongoing support with payroll and other services that are needed. Our goal is to customize your services to match your preferences. So, we will help you identify the right monthly package to match your requirements. If you have questions along the way, then you are always invited to reach out to our team to learn more about how we can help.

What is the Difference Between Tax Accounting Services and Outsourced Accounting?

Most small business owners will talk to their accountant once a year: at tax time. Instead of waiting until tax season to work with our clients, we focus on the ongoing efforts that will maximize your overall financial success. We offer the tax preparation and filing services that you need, but these services are just a portion of your overall package.

In addition to annual tax filings, we keep up with the ongoing transactions that will impact your tax burden. This annual strategy is an important way for you to measure the financial health of your company and prepare for the future.

Will I Give Up Control of the Books if I Hire an Accounting Team?

No, you won’t give up control. You will still maintain full control over the financial books for your company. In fact, many small business owners find that they have more control after hiring an accounting team. When the transactions are kept current, you can trust the numbers that you will find in the accounting system. Then, you will be able to plan and allocate the funds as needed. You always have the final say when it comes to approving payments and invoices.

How Can I Learn More?

If you are interested in learning more about how your business can benefit from accounting and bookkeeping services, then we invite you to talk to our team here at Easier Accounting. We are working hard to provide the best services in the accounting industry. Our services are specialized for small business owners and entrepreneurs. So, you can rest assured to know that you are receiving services from a team with real-world experience in the industry.

Talk to us right away to see the benefits that are available for your company. We are here to help with anything that you need. Call today to see if our services are right for you: (888) 620-0770