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Start 2020 Right with These Small Business Accounting Goals

The New Year is just a few days away… are you ready for a fresh start? Not only is January 1st the beginning of a New Year, but 2020 means that we are also ushering in a new decade. This date on the calendar marks a symbolic opportunity to reset, begin new initiatives, and align your habits to create the lifestyle that you desire.

What do you want to create in 2020 and beyond? As a small business owner, you likely have both personal goals and business goals in mind. Keep in mind that building your personal mindset can be an effective way to help your business grow as well.

While there is much to be said about mindset and personal development goals, today we are going to focus on New Year’s resolutions that will help you create a strong financial foundation for your business. Following these strategies will boost your cash flow, improve your tracking systems, and give you more peace of mind regarding the financial health of your company.

Reasons Resolutions Fail

Everyone has the best of intentions at the start of the New Year. But, how long do you stick with the new habits or goals that you’ve chosen? More often than not, we start with great intentions, then slack off by the end of January or beginning of February.

If you want to set yourself up for success, then you need to be deliberate in setting goals that will last. Not only do these goals need to be achievable, but they also need to be meaningful and impactful. When you can see results from your goals, then it increases the likelihood that you will maintain consistency in the future.

Here are three main reasons why New Year’s goals often fail:

  • You choose a goal without a realistic plan to achieve the outcome
  • The resolution is not defined or too vague
  • The goal is based on what society or other people say that you should be achieving

Understanding the reason why many New Year’s resolutions fail will give you insight into the strategies that should be followed to help you choose the right goals for 2020.

Creating SMART Goals for Your Business

In 1981, the journal Management Review coined the term SMART goals to define an effective system for setting goals that will work. Keep these simple tips in mind as you are creating your business intentions for the New Year:

  • Specific: Choose goals that are clear and deliberate. This goal should be concrete, instead of a vague idea about what you want to improve. For example, setting a goal to “improve your small business bookkeeping system” is too vague to know if you actually achieve the goal. Instead, define guidelines about what needs to be achieved, such as: “I will hire a new bookkeeper by January 15th and have a new accounting software in use by February 15th.”
  • Measurable: Next, you need to be sure that there is a way to measure your progress and success with the goal. For example, if you want to improve your consistency with bookkeeping and accounting, then you need to be able to measure the actions that are being taken. You might set a goal to spend 5 hours per week on accounting tasks, with specific measurement points regarding when reports run and analyzed.
  • Achievable: Setting goals that are too lofty could be creating a high probability of failure in the future. While it’s important to aim for big results, attempting to take a step too fast could result in frustration and a lack of achievement. For example, setting a goal to increase your profits by 500% in 2020 isn’t likely achievable without specific business-building strategies in place. On the other hand, you could set a reasonable growth goal based on the trends of past years, giving yourself room to stretch just a little more.
  • Relevant: Consider how important the goal is and how much it will impact your business. Are you choosing this goal for the right reasons? Setting a goal to outsell your competitors might have too much of an outside influence, making it hard to find the internal motivation to keep pushing forward. Instead, look at specific points of success within your business that you can build on, or identify weaknesses that need to be improved.
  • Time: You need to have a clear timeline about how progress will be achieved and when you will reach the goal. Give yourself enough time to meet smaller, stepping-stone goals that will help you achieve a greater purpose in the future. Focusing on these small wins will create an environment so you are prepared to achieve bigger possibilities.

Combining these five principles can create the perfect solution that will help your business grow.

Ideas for Small Business Goals in 2020

What are the specific goals that you should be setting for your business in 2020? If you are looking for ideas, then these are some of the options that might be beneficial for your company:

  • Review 2019: It’s hard to create effective goals if you don’t know where your starting point is. Consider the current financial health of your company so you can identify areas of improvement that need to be addressed. Being aware of what is going on means that you “take off the rose-colored glasses” and look at the reality of your current situation. Evaluate cash flow, profitability, the effectiveness of marketing campaigns, business debt balances, and more. The overall goal should be to look at income earned as well as the money that you paid for vendors and suppliers. Getting clarity on these details will help you choose goals that will be perfectly catered to the needs of your company.
  • Tap into Professional Services: You are carrying a lot of responsibility if you are trying to manage the bookkeeping, tax preparation, payroll processing, and more. Instead of fumbling your way through accounting and bookkeeping tasks that you don’t know much about, consider the option to hire professional accounting services for your small business. An experienced small business accountant will be able to offer recommendations about tax strategy, as well as the right systems that can be used to track your financial information and stay ahead of all of the reports.
  • Set Aside an Emergency Fund: Even if your business is booming right now, it is important that you are proactive about preparing for a rainy day. The economy can change and all industries often experience slow seasons and busy seasons. When the sales are flowing in, create an emergency fund that can be used in case cash gets tight. Set a goal for a specific amount that you want to have in savings by the end of the year.
  • Sales Objectives: If you are looking for ways to boost profits, then consider setting a goal about your sales objectives for the year. Are your sales currently trending upward? Then you can identify ways to leverage the growth as much as possible. Are your sales currently trending downward? Then it might be time to reevaluate and set a goal to bring sales back to the levels previously achieved. Break down the numbers to see how many sales need to be made, so you hit your desired profit margins for the year.
  • Payroll Processing: Are you calculating payroll through an outdated system? Then it might be time to update your payroll processing system. Set a goal to implement a new software that provides automatic calculations. Or, better yet, outsource payroll processing to your bookkeeping and accounting team so you no longer need to worry about the busy work every time payday rolls around.
  • Collections Systems: One area of improvement that commonly needs to be addressed among small business owners is to create a better system for follow-up regarding outstanding invoices. Outstanding customer invoices will take a toll on your cash flow, which can have a domino effect on inventory management and your ability to pay overhead costs. Design and implement an efficient system to track invoice due dates and follow-up when the payments are overdue.
  • Increase Deductions: If you are like most business owners, then it is common for expenses to slip through the cracks. Whether you lose a receipt or you don’t stay current with data entry, it can be easy to overlook transactions that could be used as business deductions. Set a goal to be more diligent about tracking these details. For example, your goal might be to set aside an hour on Fridays to update your expenses and review the money that was spent during the week.

Improving your business accounting system can be easy when you leverage the services of an experienced accounting team. If you are looking for support with your 2020 small business goals, then our team is here to assist. Contact us at Easier Accounting to learn more about the range of available services. We keep our focus on small business accounting services, giving you specialized services that will help your company thrive. Call right away so that you are ready to achieve your 2020 New Year’s resolutions: (888) 620-0770.

Don’t Be Fooled by These Common Myths About Small Business Taxes

Owning a business can be advantageous when tax time rolls around because you have many options for tax write-offs and deductions. The problem is that the tax code can be quite confusing, making it hard to know how to maximize these write-offs while still staying within the guidelines established by the IRS. Too often, business owners find themselves in challenging tax situations due to an attempted DIY tax filing, often including improper deductions or other issues that could result in auditing and fines in the future.

The costs can add up if you cross the regulations set by the IRS. Not only are there penalties for mistakes on tax filings, but the late fees and other charges can really take a toll on your bank account. The best thing that you can do is make sure that you always pay your taxes on time, and be careful to avoid writing off deductions that aren’t qualified for your business.

On the flip side, don’t make the mistake of overlooking deductions that you are entitled to, which could result in an overpayment of your taxes. There is no reason to pay the IRS more money than what is needed each year! Hiring an accountant is the most effective solution to find the sweet spot with your tax filing and payments. Your small business accountant can offer advice to maximize deductions while staying within the guidelines set by the IRS.

When it comes to business taxes, there are a variety of myths floating around. Here are some of the most common myths

Myth #1: Over-Pay Your Taxes Will Help You Avoid Auditing

Some people think that fattening out their tax payments can make their business “audit-proof” in the eyes of the IRS. The truth is that red flags will fly for underpayment, but the IRS doesn’t care if you pay the right amount or if you overpay. The best way to avoid the scrutiny of the IRS is to pay the exact amount due, based on your business calculations for the year.

What happens if you overpay? If you are making quarterly payments and you send the IRS more than the amount needed for the year, then it means that you will likely get a tax return when tax time rolls around.

You can minimize the risk and impact of an audit with good recordkeeping, documentation to back up your deductions, and accurate calculations on your tax filing each year. An experienced tax accountant can provide the guidance and information you need to ensure accuracy on your tax calculations.

Myth #2: It’s Awesome to Get a Big Tax Refund

It can feel like Christmas in April to see a big check show up from the IRS. Many people plan their vacations or big purchases around their tax refund money. But, before you spend that cash on electronics or something frivolous… remember that the refund is coming because you overpaid on your taxes.

Receiving a tax refund could be a sign that you aren’t using the right calculations to estimate your tax payments. Overpaying on your taxes means that you are sending the IRS money that isn’t needed. Essentially, you are giving the government a free loan!

The best solution is to pay the right amount on your tax payments, so you have the money on hand to pay for the business expenses that need to be covered throughout the year. Your tax accountant can help you find the “sweet spot” for your payments, making it easy to dial in the right numbers without underpaying or overpaying.

Myth #3: Home Office Deductions Increase the Risk of an Audit

Are you scared to take a home office deduction because of the potential increased risk of being audited? Just because you are taking home office deductions, doesn’t mean that you will trigger something in the IRS system that causes you to be audited.

Home-based businesses are quite common in the digital world that we live in. Whether you are working at home as a freelancer or you have a new startup running in the basement or garage, don’t be scared to leverage the home office deduction to manage your expenses. Follow the recommendations of your accountant and make sure that you only write off the portion of the home that is being used for business purposes only. For example, your office should be a room used only for the business… you can’t use the room as both an office and guest bedroom.

Myth #4: All Start-Up Expenses Should Be Deducted Immediately

It costs money to start a business. Not only do you need to put cash into business development and inventory purchases, but other expenses add up when it comes to website design, marketing, and more. Many of these costs need to be paid before the business opens, and might include both organizational and structural costs.

If you put money into office equipment or machinery, then that asset can be written off in full in the current year of taxes. Sometimes, it is a better strategy to amortize costs for equipment and other expensive purchases. Talk to your accountant about the equipment that was purchased, the overall costs of the start-up purchases, and your tax strategy to decide if the expenses should be deducted immediately or spread out over time.

Myth #5: File an Extension if You Can’t Make the Tax Payment

As April 15th draws near each year, do you ever find yourself in a cash crunch? Even though tax time is still a few months away, you should start thinking about cash flow right now, so you have enough money in the account to cover the required costs for both state and federal taxes.

If your tax filing isn’t ready by April 15th, then you might consider filing for an extension to buy a little more time for the final calculations. Sometimes, an extension makes sense – but you should always make this decision based on the recommendations of your small business accountant.

Remember this important aspect of tax extensions: buying a little more time to file your taxes doesn’t mean that you get more time to come up with the cash that is needed. When the IRS grants permission for a tax extension, you are still required to pay the anticipated amount of taxes on the day they are due.

Myth #6: Incorporate for Better Tax Breaks

You can choose from various structures for your business entity, including Sole Proprietor or a Corporation. Don’t mistakenly think that incorporating your business is essential in the early stages. In fact, this cost is unnecessary in the beginning. It can cost thousands of dollars for accounting and legal fees to set up the corporation… and you won’t likely make enough money in the first few years to make it worth the expense.

Setting up a corporation prematurely might increase the amount of taxes you pay overall since you need to pay for corporate taxes. These expenses can be avoided in the beginning by sticking with a self-employment structure, especially if your business isn’t profitable yet.

Self-employment allows you to enjoy the same deductions, without going through the hassle of setting up an official corporation. Once your profits hit a certain annual threshold, then the real tax benefits of incorporating will kick in. Talk to your accountant about the entity strategy to determine the right timing for setting up your business corporation.

Myth #7: Paying an Accountant for Tax Filing is the Best Tax Planning Advice

No doubt, your business will benefit from the tax preparation and filing services offered by an experienced small business accountant. But, talking to your accountant once a year isn’t enough to put together a strong tax strategy for your business.

Tax preparation services are limited to taking the annual information that you provide and compiling it into the tax return paperwork that needs to be filed. Once that filing is complete, then you won’t likely hear from your tax preparer until the next tax season rolls around the following year.

If you want to be proactive about your tax strategy, then you need to be working with an accountant on an ongoing basis. The best solution is to maintain open communication with a tax professional throughout the year. You can use their advice and recommendations as you are making decisions about your business. Remember that tax planning should be an ongoing process. Your business financial information needs to be evaluated in real-time, so you can make changes and adjustments to your spending and profit strategy when it is most effective.

Talk to the Small Business Accounting Experts

Are you considering the benefits of hiring an outsourced accounting team? If you are ready to make the changes that are needed for your tax strategy, then our team is here to assist. We provide ongoing accounting and bookkeeping services, helping to keep your business up-to-date throughout the year. These services are always customized, based on the unique needs of every company.

For more information about these outsourced accounting services, call us at Easier Accounting: (888) 620-0770.

The Pros and Cons of Small Business Loans

Cashflow can be a challenging detail to manage in your business, which is why it can be helpful to have credit cards and/or a line of credit available to get you through the lean months. The way you structure the credit should depend on the needs of your company and the financing options that are available. For example, small business loans might work for some people, but others prefer to use credit cards.

Small Business Loans: Getting Started and Business Growth

There are two points when a small business loan can be quite valuable to your business:

  • Getting Started: When you are trying to get the company off the ground, cash is needed to help you get things rolling. Some people have personal funds that are put into the business, but this money will only get you so far. Not only do you need money for marketing, website design, inventory, and more, but you need to be sure there is enough cash to keep you going in the beginning. Small business loans can be used upfront so that you can get your company launched. The bank that provides the loan will use your personal credit score and reputation in determining the amount of money that is available and the terms of the loan.
  • Future Growth: If you have an established business, you might face cashflow issues when it is time to grow. Expansion requires money, which can make it a tricky situation to navigate if you don’t have the cash in the bank. Future growth is much easier if you have a loan to tap into for the funds that are needed. This money can be used for business development, marketing, inventory expansion, and more.

Sometimes, the loan is structured as a set dollar amount that is paid to your business, and then you can use the money as you see fit. Another common option is to use a small business line of credit. This solution works similar to a credit card with a balance that can go up and down over time. The difference is that cash is available to ensure that you have the money when it’s needed.

What Do Lenders Want?

Small business loans aren’t automatically handed out to every person who has a business idea. When you talk to the bank, they will determine the risk of the loan and how much money will be available. The goal is to ensure that you will be able to pay the loan back in full. So, the lenders will be looking for a few key points to ensure that you are a safe and reliable customer.

Since the primary concern of the lender is that the loan is paid back in full, they are going to look at your personal credit history and track record. If you want to qualify for a business loan, then it is helpful to have a good personal credit score to show that you have a track record of paying back the money.

Additionally, the bank will ask for your business plan and other details about your company. You might need to show how the money will be coming in from customers, and potential details that you should anticipate in the future.

Each lender will set the terms of the loan based on your risk and qualifications, which means that there are various possibilities for interest rates, loan caps, and repayment schedules. If you are a high-risk borrower, then it is likely that you will have a high interest rate and a lower amount for the loan. One option is to shop around with various banks and credit unions to find the best terms that you can qualify for.

Also, don’t feel disheartened if one lender rejects your application. If you receive a rejection, then talk to the lender to learn why the loan wasn’t approved. This information can be valuable so you can change your future applications to increase the likelihood that you will be approved. Some lenders will let you reapply after the concern has been fixed. Or, you can use the feedback to improve your application with other lenders.

Paperwork to Provide with Your Business Loan Application

What are the specific requirements that will be requested by your lender? You need to be prepared with paperwork and other information when you are completing the loan application. These are some of the most common requirements that lenders might request:

  • Purpose of the loan
  • Desired amount for the loan
  • Personal credit score
  • Business credit score
  • Business plan
  • Time in business
  • Type of entity
  • Industry
  • Business permits and licenses
  • Bank statements
  • Accounting reports
  • Tax returns (both personal and business returns)
  • Rent or lease agreements
  • Business ownership information
  • Disclosure of current debt
  • Proof of collateral
  • Legal agreements or contracts currently in place

The best thing you can do is put yourself in the lender’s shoes. What are they looking for? How can you show that you are a reliable borrower? The more information you provide, the better you can show that you are a great customer for their lending business.

Pros and Cons of Small Business Loans

Is a small business loan the right solution for your situation? Here are a few pros and cons to help you decide if you should move forward with the loan:

  • Pro – Additional Capital: What could you do if you had access to additional capital for your business? This financing can be essential to help you stay afloat during the lean months and build your business when things are going well. Many business owners have trouble with cash flow, which is why a loan or line of credit can be essential in the hard times. The money can be used for business costs as needed.
  • Con – Interest Accrual: Whenever you are borrowing money, it is going to cost you in the form of interest expenses. The lender is offering the money with the purpose of making a profit on the deal. Interest expenses aren’t always a bad thing if you can leverage the cash to help your business grow. But if you aren’t careful with money management, then these interest costs could start eating into your profit margins.
  • Pro – Cashflow Management: It is common for small businesses to have ups and downs. For example, companies in the retail business refer to “Black Friday” as the turning point of the year when the real profits start to flow. Then, sales often start to slow down in January. If you are worried about cash flow management in the future, then a business loan can give you the peace of mind for those difficult months.
  • Con – Money Management: Just because money is available through your small business loan, don’t let that be a reason that you make poor money management decisions. Some business owners find that they are more risky with their money because they have a credit line to tap into. If you put your cash into a questionable business investment that falls through, then you might find yourself between a rock and a hard place when you can’t get access to the cash that is needed for paying the bills.
  • Pro – Build Business Credit: Did you know that your business can build a credit history, just like your personal credit score? Borrowing money through your business can help you establish a reputation that opens up options for more loans in the future when needed. Even if you don’t need access to the cash right now, it is smart to build your business credit so you are ready with the money when things get lean during your slower months.

Can You Get a Loan if You Have Bad Credit?

Just because you have no credit history or a bad credit score, it doesn’t mean that you won’t be able to qualify for a loan. But it might be necessary to offer collateral – giving the bank something to fall back on if you miss the payments.

Collateral can be offered in the form of property. For example, if you own an office building and hold equity because the mortgage has been paid down, then the building could be offered as collateral. You need to know the consequence if the loan isn’t repaid. Often, the lender will place a lien on the building, so the repayment will occur when the building is sold in the future.

Also, consider alternative lenders if you can’t get a loan through the bank. Sometimes, angel investors are willing to put up the money for a share in the business profits. Connect into some of the business networking groups in your area to see if you can find people who are interested in investing.

Manage Your Business Finances

Staying ahead of your financial tracking and management is key to protect your cash flow and help you position for a small business loan if needed. When you have accurate bookkeeping and accounting records, it shows the bank that you are responsible with your money, which increases the likelihood that they will be willing to lend the cash to you.

Our team at Easier Accounting is here to help with your financial management. If you are interested in learning more about the bookkeeping and accounting services that are offered, then you are invited to contact us today: (888) 620-0770.

Tax Savings Secrets Every Business Owner Needs to Know

Most business owners agree that taxes are the most expensive and stressful part of running a company. Not only do you need to track ongoing expenses and write-offs, but you also need to pay attention to paperwork and payment deadlines throughout the year. Even though tax savings can take a bit of work, it’s worth the effort because of the reduced tax liability.

When working as an employee, you probably didn’t think much about tax calculations since your own taxes were automatically withheld from your paycheck. On the other hand, self-employment is a whole different ballgame since you need to calculate profits from your business and remit payments quarterly. Other tax responsibilities come into play, including employee taxes, sales tax, and more.

Taxes are inevitable, and everyone needs to pay. But the amount you are paying can be reduced if you are diligent about a good tax strategy. As a small business owner, you can save thousands of dollars per year on taxes, helping to optimize your profit margins.

Designing a Tax Plan

One of the biggest mistakes you can make is failing to design a tax plan for yourself and your small business. You know the tax bill is coming, so you need to be sure there is enough money in the bank to cover the costs. At the same time, your tax plan should be custom-designed based on the needs of your business. The smartest decision you can make is hiring an experienced accounting team to assist with tax savings and planning.

One important point you need to keep in mind: there is a BIG difference between tax evasion and tax planning. We are not talking about deliberately underpaying on taxes… tax evasion is an illegal practice and can result in serious consequences! Instead, the right tax savings plan is built on leveraging the guidelines established by the IRS so you can take advantage of all available tax write-offs.

Your tax plan should include systems that help with tracking transactions, including both expenses and income. These details need to be calculated to determine how much you owe after business expenses are factored in. Then, you need to have a strategy in place that keeps you current with the owed taxes, as well as the paperwork and reporting that needs to be submitted throughout the year.

What is the Difference Between Tax Planning and Preparation?

Some people talk to their accountant once a year for tax services. When the accountant assists with your paperwork and filing in April, this service is known as tax preparation. While tax preparation is an important service, you are missing out if you aren’t working with an outsourced accounting team that also assists with tax planning.

Here is the difference in services:

  • Tax Preparation: This accounting service is focused on the preparation and filing of annual tax returns. You provide the financial records, and then the accountant works through the numbers to calculate the amount that is owed. These services are provided to ensure that you are maintaining compliance with the IRS. Most people only use tax preparation services.
  • Tax Planning: On the other hand, tax planning involves ongoing services and analysis based on the business financial details throughout the year. Instead of only talking to your accountant once a year, you have the opportunity to work hand-in-hand with an outsourced accounting team that can guide your financial strategies and processes all year long. The goal is to minimize tax liability and ensure that you are ready when it is time to prepare your annual taxes.

To put it simply: tax planning helps you reduce the amount of money you spend each year on taxes. Tax Preparation is the service to prepare your paperwork and numbers for submission to the IRS each year.

If you haven’t had a direct conversation with your accountant about tax planning and reducing your tax burden, then it is likely that you are only receiving tax preparation services, not planning services.

Tax Saving Strategies to Reduce the Amount You Owe

Now that you understand the difference between tax preparation and tax planning, what is an actionable way that you can change your financial practices to reduce the amount that you owe each year? It all comes down to your ongoing strategies regarding expenses, tracking, and more. Your outsourced accountant can offer guidance and insights regarding a proven system that can streamline your finances.

Here are a few important strategies that every business owner needs to follow:

  • Track Receipts: It seems obvious that you need to hold onto receipts for business expenses. But it’s easy to let small receipts fall through the cracks. If you don’t have an awareness of how much you are spending on business costs, then it is likely that you are missing out on transactions that could be calculated as deductions. You need to know how you spent your money. Proper organization and tracking of your receipts ensure that your deductions are logged, giving you accurate information for your tax filing. Not only does this process help you maximize the deductions, but you also have documentation in case the business is audited. The IRS will request paperwork to prove the validity of these deductions.
  • Don’t Pay Late Fees: Missing a tax payment is not only a hassle, but it can be an expensive mistake when you add up the costs of late fees, interest costs, and more. If you aren’t paying attention to the quarterly tax payment schedule, then you could be doing yourself a disservice by adding unnecessary fees on your tax bill. The simplest solution to ensure that you don’t miss tax payments is to enlist the support of an experienced accounting team that can help with tax planning and implementation.
  • Business Restructuring: The way your business is structured will impact the amount you are paying in taxes. You need to consider the structure of your business entity and the way taxation deductions and policies affect annual calculations. The rules and forms change, depending on the way you choose to structure the company. Even if you’ve had the same business entity for years, it doesn’t mean that the structure is still the right answer for your tax planning. Talk to your accountant about the various options. It might make sense to restructure based on your bottom line and long-term goals.
  • Use the Right Accounting Software: Calculating tax deductions by hand is not only time consuming, but it also increases the risk of mistakes. You can save yourself hours of time by using a tax preparation and filing software that handles the automatic calculations for you. Choose a cloud-based software so your outsourced accounting team can access the reports remotely to assist with your tax planning strategy.
  • Retirement Accounts: Since you own a business, you have the benefit of certain retirement strategies that can be used as tax deductions. For example, you can reduce your reported income by contributing to an individual retirement plan, such as a 401k or an IRA. Some of these accounts need to be opened by the end of the year to qualify for the deduction. Other types of retirement savings accounts can be used with delayed payments for the previous tax year. For example, you can contribute to the account in the early months of 2020 and have the contributions count for your 2019 tax calculations.
  • Healthcare Costs: Also consider ways you can save taxes on money used for healthcare needs. Medical costs are always increasing, and you need to be ready with the cash for future bills. A Health Savings Account (HSA) can be opened to be paired if you have a high-deductible health plan. This strategy allows you to deposit money pre-tax into the account. Keep in mind that money deposited into an HSA account can only be used on qualified medical expenses.
  • Travel Expenses: Do you often travel for both business and pleasure? If you have a justifiable business purpose for the trip, then you can write off the travel expenses. Business owners often look for ways to pair their personal time with business travel, giving them the benefit of writing off a portion of the flights, food, hotels, entertainment, and more.

Of course, this is not a comprehensive list of tax savings strategies. There are other ways that you can maximize your tax deductions to reduce tax liability. Every situation is unique, which is why it is important to work with an experienced outsourced accounting team for assistance.

Need Help with Your Tax Savings Strategy?

You don’t have to go through the headache and hassle of trying to decipher tax law. Instead, our experienced team at Easier Accounting is here to help. We specialize in small business tax preparation and planning, and we’re just a phone call away if you have questions about your taxes. You are invited to contact us at your convenience to learn about the various strategies that can be used to streamline your tax strategy and minimize the amount that is paid in taxes each year. Call us for more information: (888) 620-0770.

What to Look for When Hiring Outsourced Accounting Services

It’s no surprise to hear that good financial tracking will have an impact on the success of your company. Managing the way the money is flowing in and out of your business will affect cash flow and other important aspects of running a company. Too often, entrepreneurs don’t have the necessary professional training, which is why they turn to outsourced accounting services for assistance.

How You Will Benefit from Outsourced Accounting Services

Is it the right choice for you to hire an outsourced accounting team? Most business owners don’t take this decision lightly. Not only will you be spending money on the services, but you are handing over sensitive financial information to the accounting team.

Even though it takes trust to bring in an accounting team for help, you won’t regret this decision. Here are some of the benefits you can expect when you find the right outsourced accountant to help with your financial tracking and strategy:

  • Expert Advice: You didn’t spend years in college studying accounting and bookkeeping, and it isn’t likely that you have years of hands-on experience in the industry. One of the greatest benefits of an outsourced accounting team is that they bring industry experience to the table. You can team up with the financial pros to leverage this experience in a way that helps your company grow. Outsourced accountants know the right way to set up your systems. They can implement effective processes to improve the efficiency of your financial reporting. Also, an expert outsourced accounting team will tailor your services to meet your needs, helping you create a system that is scalable to help with future growth.
  • Compliance, Regulations, and Laws: Most people are bored out of their minds when digging into details about tax laws and financial regulations. In addition to the Federal requirements for tax filing, you also need to pay attention to local regulations for the city and state where your business is located. These laws change each year, which can make it a challenge to stay current. The easiest and most effective way to ensure that your business is in compliance is by hiring outsourced accounting services for assistance. Your accounting team is immersed in these laws and regulations each day, and they understand the ins-and-outs of implementation for your company.
  • Manage Cashflow: One of the biggest challenges you will face is managing cash flow to ensure there is enough money in the bank to cover upcoming expenses. Even though money is coming in through sales and transactions, there can sometimes be a gap between the time when the money is received and when your expenses need to be paid. You can be bringing in a significant amount of money and still feel the financial stress if you are leveraged to the point where you don’t have the cash flow available for expenses. Outsourced accounting services can be beneficial to help you with the implementation of an effective strategy to anticipate upcoming expenses and ensure that you have cash in the bank account for those needs.
  • Boost Productivity: How many hours per week are you spending on bookkeeping and accounting tasks? Taking a DIY approach for your business accounting means that you are burning precious hours that could be spent on other responsibilities. For example, if you are spending 10 hours per week on bookkeeping, then it means that you are missing out on 10 hours per week that could be dedicated to business development, customer acquisition, and more. Pass off the accounting and bookkeeping responsibilities to an experienced team so that you can focus your efforts on other important tasks.
  • Reducing Business Expenses: Tracking your transactions is one of the first (and most important) steps in managing your budget. When you can see where the money is being spent, it is easier to adjust your spending habits so that you can be in control of your business finances. Every penny spent on business expenses cuts into your profit margins. An outsourced accounting team can help you with the tracking and budgeting implementation to support your long-term goals.
  • Minimize Overhead: Also, consider the way outsourced accounting services can be used to minimize your overhead costs. When you can see that accounting skills are needed in your company, it is easy to mistakenly think that you need to bring in another employee to help. But adding another employee to payroll can be a heavy financial burden, especially for small businesses and startups. Instead of taking on the fully burdened cost of a salary and benefits, you can invest a smaller amount in outsourced accounting. These services give you access to the full range of skills that are needed, at a much lower cost.

As you look through this list, are you seeing why it is worth the cost to invest in accounting services? Now it’s time to make the investment in an accounting team that can help with your business goals.

Tips for Hiring Outsourced Accounting Services

Instead of hiring the first accounting team that you can find, it is beneficial to be strategic in the way you choose outsourced accounting services. Here are a few things that you should be looking for when you are comparing service providers in the accounting and bookkeeping industry:

  • Licensing and Certifications: Does the team that you are hiring hold the right certifications and licensing? Holding an accounting degree means that your accountant is a true professional. Many people can say they are experienced in financial strategy, but the certifications show the years of training and education that went into the accountant’s development.
  • Reputation: You are entrusting your financial information to the accounting team, so it is important that you can trust the company. Investigate the reputation of the company to be sure that you are bringing in a team that holds the highest levels of accountability when it comes to protecting your information. Reputation is a non-negotiable when hiring an accountant because the provider will have access to your financial information and sensitive details about your business.
  • Scope of Services: What services are needed for your company? You need to have clarity about the financial services that will support your goals, to ensure that you are hiring a team that provides the skills that are needed. You might have a handle on the ongoing bookkeeping tasks, so you just need an accounting team to fill in the gaps with tax strategy, tax preparation, and filing services. Or, you might be looking for full-service solutions that include payroll processing, bookkeeping, account reconciliations, financial strategy, and more. Find a team that fits your individual needs.
  • Experience and Specialties: For example, it can be beneficial to choose an outsourced accounting team that specializes in small business services if you are an entrepreneur or a startup company. Experience with larger corporate entities differs from the services needed for a small business.
  • Accounting Tools and Technology: Be cautious if an accounting team wants to implement a system that relies on manual calculations. We live in a modern business world with many online tools to support automation. A good accounting team will implement a proven software program that streamlines your transactions as much as possible, paired with professional services for bank account reconciliation, strategy, and more.
  • Pricing: Also, consider the amount of money that you will be spending on the services. Not only do you need to look at the price tag, but it is important that you consider the value and services provided for that cost. Remember that outsourced accounting services are an investment for your business. While it is important to be careful about the amount of money spent on the services, you also need to identify the way these services will boost profitability and help you save money.
  • Customer Focus: It is important that you can get someone on the phone if you have questions about your business finances. When you are hiring an outsourced accountant, ask about questions and ongoing support through the year. One of the biggest mistakes you can make is only talking to your accountant once a year… at tax time. You will gain the most value through working with an accounting team that provides communication, support, and strategy implementation all year long.

Is the Timing Right to Hire an Outsourced Accountant?

How do you know when you should make the investment in an outsourced accountant? Timing is important, so you should always consider the needs of your company.

The truth is that it is never too early to invest in accounting services. Even if you are in the earliest stages of launching your new startup, an accounting team can be invaluable to help you get started on the right foot.

Our team at Easier Accounting specializes in small business accounting services. We’d love to talk to you about the way our services can be used to support your business needs. If you are considering the option to hire an outsourced accounting team, then we invite you to contact us to learn more. Call right away: (888) 620-0770.

The Small Business Owner’s Guide to Self-Employment Taxes

Self-employment taxes are a necessary and unavoidable part of being a business owner. Building the business feels fun and glamorous, but many entrepreneurs agree that taxes can be both stressful and burdensome. The key is to plan ahead for the tax burden you will be carrying, so the costs and paperwork don’t catch you off-guard. The right financial plan can make it easy to keep up with your self-employment taxes, ensuring that you have money set aside when it is time to make the payments.

Do You Fall in the “Self-Employment” Category?

It is important to understand the IRS’s definition of self-employment to see if these taxes apply to your situation. Knowing the federal regulations and guidelines means that you won’t skip past the tax obligations by mistake.

If you have the goal of bringing in money through work that you do for yourself, then you are considered self-employed. The work that you complete falls in the category of self-employment when you are not a shareholder or an employee.

Keep in mind that your business doesn’t need to actually be profitable for you to be considered self-employed. When you have the goal of earning a profit, and you are putting in regular work towards that goal, then the IRS views your efforts as self-employment. Even if you work as an employee for another company (either full-time or part-time), you still fall under the category of self-employment if you do work outside of your regular job to earn money on the side.

It’s one thing to be paid for a one-off day of work helping a friend with manual labor. A one-time opportunity to earn a bit of extra cash isn’t regular enough to fall in the category of self-employment. But, if you are consistently putting in the effort to engage in activities that bring in a profit, then you are self-employed.

Overview of Self-Employment Taxes

The tax rates can change from one year to the next, which is why it is best to work with a financial professional who will ensure that you are paying the correct rates. Self-employment taxes are calculated by combining your requirements for both Medicare and Social Security taxes.

Both self-employed workers and employees need to pay Social Security and Medicare. When you are working as an employee, your employer pays 50% of the tax burden, and the other half is deducted from your paycheck. On the other hand, self-employed workers need to pay the full 100%.

These self-employment taxes are calculated based on the profits of your business efforts. This is the calculation that is used:

  • Gross (total) revenue – qualifying tax deductions = profit that can be taxed

Since the taxable amount is calculated without the deductions, many business owners look for ways to leverage the deductions as much as possible. It is important to stay within the legal guidelines, and your small business accountant can offer guidelines and recommendations that apply to your situation.

Classifications: When Self-Employment Taxes are Required

You tax classification plays a role in whether you are obligated to pay self-employment tax. If one or more of these classifications apply to your tax filing, then it is smart to talk to a tax accountant for information about self-employment taxes:

  • Independent contractor (freelancer)
  • Sole proprietor
  • Member of a partnership
  • Member or partner of an LLC (single, or multi-member organization) and you haven’t changed your default tax classification

Income Tax vs. Self-Employment Taxes

Don’t mistakenly think that income taxes and self-employment taxes are the same time. Even though there is a difference in the way self-employment taxes are calculated, income tax works the same for everyone.

This income tax rate is also based on the taxable profits, using the calculation listed above. Once the taxable income is determined, then tax credits and personal deductions are calculated in to determine the amount that needs to be paid.

50% of your self-employment tax can be used as a deduction, which helps to reduce the total taxable income for the income tax calculations.

The filing status and tax rates vary, depending on the tax bracket in which you fall. These federal brackets can change each year. In 2019, the progressive range of income tax rates falls between 10 – 37%.

Why You Shouldn’t Kick Taxes to the Backburner

W-2 employees don’t have much to worry about regarding ongoing tax calculations and payments, because these amounts are automatically deducted from their paychecks by their employers. On the other hand, self-employed individuals don’t have the convenience of automatic tax calculations and deductions. It’s your responsibility to ensure that you are keeping track of what you owe and staying current with paying these amounts on time.

You already have a lot to worry about with business-building efforts, marketing, employee management, and more. It might be tempting to push self-employment taxes to the back-burner. But don’t be fooled into thinking that you can deal with taxes at a later date. If you want to avoid a stressful and costly audit by the IRS, then you need to be sure that Uncle Sam is getting his share of your profitable income.

Also, consider the consequences of incorrect tax filings. If you don’t have experience with tax calculations and paperwork, there is a high risk that you might make a mistake. In the case where that mistake is discovered by the IRS in the future, it means that you could be facing expensive fines, interest costs, and penalties. Save yourself time, money, and stress by ensuring that your taxes are calculated, filed, and paid correctly the first time around.

How Often Do Self-Employment Taxes Need to Be Paid?

Most people only think about taxes once a year: in April when the tax filing deadline happens each year. But, if you owe more than $1,000 on the tax return filing, then you will be required to make quarterly tax payments. So, you need to be prepared to pay taxes four times per year.

These payments are calculated by looking at your previous year’s taxable income, then calculating the amount that will need to be paid each quarter. Of course, you can’t predict the exact amount you will earn in a given year, which is why these quarterly payments are called estimated tax payments.

This is the payment schedule for estimated tax payments. You will need to send the payment before or by the end of the day on:

  • Jan 15th
  • April 15th
  • June 15th
  • Sept 15th

Sometimes, these calendar dates fall on a weekend or federal holiday. In that situation, the due date for estimated taxes is pushed to the next day that is not a weekend or holiday. Small business accounting services makes it easy to keep up with these tax deadlines because you will receive estimated tax payment vouchers that list the specific dates for each calendar year.

Other Taxes for Business Owners, Entrepreneurs, and Start-ups

Keep in mind that the IRS only oversees the enforcement of federal taxes. It is possible that you will need to pay state and/or income tax depending on where you live. A few of the states don’t charge personal income tax, so you might consider moving your business efforts to those locations if you have the flexibility of an online income.

Other tax burdens need to be considered as well. For example, if you have employees, then you will need to pay and manage the paperwork for employer payroll taxes. Also, sales tax might need to be calculated on the products and services that are sold, depending on your location.

Be Prepared for Future Payments

With self-employment, it’s easy to make the mistake of confusing take-home pay with the gross revenue. Even though the money is coming into your bank account, it doesn’t mean that it is all yours to pocket. Too often, self-employed business owners spend the cash, then face big cash flow issues in the future when it is time to pay the IRS.

Never make the mistake of making big business decisions based on the money sitting in your bank account, without considering upcoming tax obligations. A good small business accounting software can help you stay current with financial reports and upcoming costs. Use this information to gain a clear picture of the true profits of your business efforts, helping you avoid the pitfalls of not having enough to pay the bills when tax time rolls around.

One of the best things that you can do is set aside a percentage of your money for future tax bills. Since self-employment income is often variable, you can create a system that automatically saves your tax money in a separate account.

Find an Outsourced Accounting Team to Help

Not only is it stressful to keep up with the deadlines for tax payments, but the government forms can be intimidating. Most self-employed business owners choose to hire the help of a local accountant or outsourced accounting services through a reputable provider. Our experienced team at Easier Accounting is always here to assist. If you need help designing the right financial system to keep up with your self-employment taxes and business reports, then we invite you to contact us right away: (888) 620-0770.

Top Benefits of Outsourced Accounting Services

You know that it is time to hire an accountant to help with your business finances. But, now you are facing the challenging decision of choosing the right accounting team to take care of the services that are needed. How should you go about choosing the right accounting services for your start-up or small business? Outsourced accounting services can transform your financial reports, helping to boost the potential of success of your company.

DIY is a Bad Idea

Do-it-yourself might be a good solution if you are repainting a bedroom or working on product development ideas. But, don’t make the mistake of trying to manage the finances for your company if you don’t have experience with accounting and bookkeeping.

One of the common problems that we see is when business owners attempt DIY financial management for their startups. While things might seem fine in the beginning, even the smallest issues can snowball into big problems in the future. As a result, you might end up paying more money to an accounting team that needs to clean up the mess.

These problems are easy to avoid by hiring the right accounting team in the first place. Quality accounting services will be helpful to create a solid foundation for your company and set you up for a successful future.

Local vs. Online Services

Often, the first idea is to look for accounting services in your city or town. While there may be benefits to local accounting services, don’t overlook some of the benefits that are available from hiring remote services. Most businesses are managed in the cloud, which means that there is no reason why you need to have face-to-face conversations with your accounting team. Instead, you can choose a team located anywhere in the country.

Online accounting services can be a good choice because you can tap into the best skill set applicable to your business needs. Plus, it is common to get a better “bang for your buck” regarding the quality of services that are offered at a minimal price.

The best thing that you can do is evaluate your options and then find the outsourced accounting services that match the requirements of your business.

Why Outsourced is Better Than In-House Accounting

One common debate is whether you should hire an employee or an outsourced accounting team to assist with the financial reports. Consider the costs of bringing an accountant on staff, and you will see that it is more affordable to outsource these services instead of maintaining the work in your office.

If you hire an accountant, then you are adding another salary to your payroll. Plus, you will accrue additional costs for office space, equipment, office supplies, benefits, and more. These costs definitely add up to more when you are paying for an internal employee.

Also, consider the fact that you can tap into a specialized skill set. Employees are often looking for training on the job, which means that you will need to cover the costs as they learn the skills that are applicable to your company. On the other hand, you can skip the training expenses by choosing an outsourced accounting team that specializes in the type of accounting that you need. For example, if you have a small business or a start-up, then your best bet is to choose an outsourced company that has experience working with other small businesses. It doesn’t make sense to hire a big, corporate accountant if you are in the beginning stages of getting the business off the ground.

Benefits to Expect When Hiring Outsourced Accounting Services

Here are some of the benefits you can expect when you choose outsourced accounting services:

  • Don’t Stress Over the Numbers: Does crunching numbers give you a headache? If you don’t enjoy managing the bookkeeping, taxes, and accounting, then it is time to hand these tasks off to an experienced team. You have the luxury of choosing how you are going to spend your time. Don’t waste your day doing something that you dislike. Outsourcing this part of your business means that you will have more time and energy to put into business growth activities and other management tasks that you enjoy.
  • Lean on the Experience from the Pros: Putting your books in the hands of the experts can have a drastic impact on the success of your company. Your accountant can offer years of experience, training, and education. They work with many companies on a day-to-day basis, which means that your business can benefit from the lessons that have been learned over the years. While an in-house employee can handle basic tasks, the employee can’t match the industry-specific skills that come from a dedicated accounting firm.
  • Improved Productivity: Instead of dedicating your time or your employee’s responsibilities to accounting and bookkeeping, outsource these requirements to free up resources for other tasks. A large amount of paperwork is required to keep up with accounting needs, leaving many companies buried in invoices and tax forms. Let the experts handle the files, which will help to boost the productivity of the staff in your office.
  • Save Money: One reason you need financial management is to save money and boost profit margins. As mentioned above, outsourced accounting services are cheaper than hiring an in-house employee. But, there are other financial benefits that can be expected as well. Remember that outsourcing is an investment. When you compare the costs of outsourced services, you will find that these costs are more affordable compared to other options. Plus, a good accountant can help with cost savings by reducing the tax burden, managing expenses, and more.
  • Grow Your Business: If you are experiencing a growth trend in your company, then you need to be sure that you have the support to help with the anticipated expansion that will be happening in the future. Bringing in the services of an accountant means that you will have the structure in place so that your company doesn’t buckle under the potential growth. It is possible to maintain agility as the industry fluctuates with rises and falls over the years.
  • Latest Industry Technology: It is easy to get stuck in “analysis paralysis” when you are comparing various accounting software programs that are available for your business needs. Instead of wasting days or weeks trying to determine the right features that are needed, talk to an experienced accounting team for assistance. You can access the latest technology and create financial systems that are built to last. Using the services of an accounting team means that you are benefiting from the leading accounting software and best systems to ensure the success of your business.
  • Focus on your Business: When you hire an accounting team to take care of the financial services that are needed. Then, it means that you can turn your focus to the core activities that are needed to grow your business. Don’t let yourself be distracted by focusing on things that sidetrack your focus from the things that you need to be working on. While it is important to take care of back-end tasks, these things can be outsourced so that your focus is placed solely on the activities that will help with the future growth that you are striving to achieve.

Choosing an Outsourced Accounting Team

The most important factor in choosing an outsourced accounting team is to find the core competencies that will help your company grow. What services are needed for your business model? How much support is needed throughout the year?

You might be surprised to see just how much you will benefit by bringing in a bookkeeping and accounting team to help. These services can be used to manage payroll processing, ongoing tax forms and payments, invoicing, cash flow, and more.

There’s no question that outsourcing helps with the efficiency and effectiveness of your business. When you have a good financial system in place, then many of the common issues will be smoothed over. Plus, you can rely on accurate financial reports when it is time to make big decisions that will affect your company.

Boost Your Business Results

If it is time to make a change so that you can move your company forward, then you need to look for options that will help with the growth of your business. Accounting and financial services are great solutions that can make a difference in the future.

Before you rush into this decision, we invite you to call our team to learn more about the services that are available. We offer a range of options that can be customized based on the needs of your company. Our team is always on call to answer your questions and help you determine the solutions that are most applicable to your business model.

Easier Accounting is leading the industry by offering the best outsourced accounting services that are available. We offer many years of experience helping entrepreneurs and small businesses with common accounting tasks. Call today to see how we can support your business efforts: (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