Month-End Bookkeeping Tips for Small Businesses

As we approach the end of another month, it’s time to ensure your books are in tip-top shape. Here are some valuable month-end bookkeeping tips to keep everything in order.

1. Reconcile Bank Statements.

Start by reconciling your bank statements. Ensure all transactions match between your records and your bank statement. This will help identify any discrepancies or errors.

2. Review Outstanding Invoices.

Go through your accounts receivable and follow up on any outstanding invoices. This is crucial for maintaining cash flow and reducing bad debts.

3. Record Accruals and Prepayments.

Ensure you record any accruals or prepayments for expenses or income. This will provide a more accurate picture of your financial health.

4. Double-Check Tax Obligations.

Verify that you’re up-to-date with tax payments and obligations. Late fees and penalties can add up, so it’s best to stay on top of them.

5. Create Financial Reports.

Generate key financial reports, like your profit and loss statement and balance sheet. These reports offer insights into your business’s financial performance.

6. Plan for Next Month.

Use the end of the month to set financial goals for the upcoming month. This will help you stay proactive in managing your business finances.

Remember, good bookkeeping is not just about compliance; it’s also a powerful tool for decision-making and growth. Don’t hesitate to reach out if you need any assistance with managing your business finances.

Enjoy The Holidays With These Budgeting Tips for Small Business Owners

With the holiday season just around the corner, it’s the perfect time to prepare for joyful celebrations. The holidays can be an exciting time for many, but they can also bring on financial stress.

That’s why we’ve put together some budgeting tips to help you make the most of the holidays while keeping your finances in check.

1. Plan Your Budget Early.

Start by setting a clear holiday budget. Consider your personal and business expenses, such as gifts, decorations, and year-end bonuses, and ensure that you allocate funds for each category.

2. Separate Business and Personal Finances.

Maintain a clear distinction between your business and personal finances. Avoid dipping into your business accounts for personal holiday expenses.

3. Track Your Spending.

Use budgeting apps or spreadsheets to monitor your holiday expenses in real-time. Tracking your spending helps you stay accountable and make necessary adjustments.

4. Be Careful With Credit Cards.

If a credit card is needed to make necessary purchases, use a card with lower interest rates. This will give you peace of mind knowing that it can be paid off without worrying about accruing more debt.

5. Set a Cap on Entertaining.

If you’re hosting holiday parties or gatherings, set a reasonable budget for food and decorations. Potluck-style events can help distribute costs among guests.

6. Start Early.

Shopping ahead of time allows you to take advantage of sales and discounts. Early planning also helps distribute expenses over several weeks or months.

If you have any questions or need financial guidance during this time, feel free to reach out. We’re here to help you navigate the season with confidence and peace of mind.

8 Ways to Manage Overwhelm as a Small Business Owner

The entrepreneurial journey can be a rollercoaster, and we want to help you stay on top of the ride. So, today, we’re sharing some valuable tips on how to combat entrepreneur burnout and keep your inspiration alive.

1. Prioritize Self-Care.

It’s not selfish to take care of yourself. In fact, it’s essential for your well-being and your business. Schedule regular breaks, exercise, and maintain a healthy diet. Remember, a healthy you is a productive you.

2. Set Boundaries.

Learn to say no when necessary. Setting clear boundaries between work and personal life can help you avoid overworking and maintain a work-life balance.

3. Delegate and Outsource.

You can’t do it all alone. Delegate tasks to your team or consider outsourcing. This allows you to focus on what you do best and reduces the weight on your shoulders.

4. Time Management.

Efficient time management is crucial. Plan your day, prioritize tasks, and allocate time for each. Tools like time-blocking can help you stay organized.

5. Stay Passionate.

Reignite your passion for your business. Remind yourself why you started and the impact you want to make. This can provide a much-needed motivational boost.

6. Seek Support.

Connect with fellow entrepreneurs, join business groups, or find a mentor. Sharing experiences and challenges can be a great source of support and motivation.

7. Regular Breaks.

Don’t skip vacations or downtime. Regular breaks can help you recharge and return with fresh ideas and energy.

8. Celebrate Wins.

Don’t forget to celebrate your achievements, no matter how small. Acknowledging your successes can boost morale and keep you moving forward.

Remember, it’s normal to experience burnout from time to time. The key is recognizing it and taking action to prevent it or recover from it. Burnout doesn’t mean you’ve failed; it’s a reminder that you’re pushing the boundaries of your potential.

Facing the challenges of managing your business finances? We’re here to support you every step of the way.

How Accurate Numbers Can Increase Your Business’​ Value

Accurate bookkeeping is not just a matter of compliance; it can significantly impact your business’s overall value. Here are several ways in which accurate books can increase your business’s value:

1. Improved Financial Decision-Making

Accurate financial records provide you with a clear understanding of your business’s financial health. This helps you make informed decisions about investments, expansion, cost-cutting, and other strategic moves that can enhance profitability and, in turn, increase the value of your business.

2. Attractive to Investors

Investors, whether they are venture capitalists, angel investors, or potential buyers, are more likely to be interested in a business with well-maintained and accurate financial records. Transparency and credibility in financial reporting can make your business more appealing and may even lead to a higher valuation.

3. Efficient Tax Planning

Accurate books help optimize your tax strategy. By identifying legitimate deductions and tax credits, you can minimize your tax liability, which ultimately increases your after-tax profitability and, in turn, the value of your business.

4. Better Cash Flow Management

Accurate books allow you to monitor your cash flow effectively. This ensures that your business can meet its financial obligations, avoid liquidity crises, and continue its operations smoothly, all of which are essential for maintaining and enhancing value.

5. Improved Creditworthiness

Accurate financial records can enhance your business’s creditworthiness. This can lead to better terms when seeking loans or credit lines, which can be used for expansion or investment in growth opportunities.

6. Compliance and Legal Protection

Proper bookkeeping ensures that your business complies with tax laws and regulations, reducing the risk of audits, penalties, and legal issues. Avoiding these problems helps protect your business’s reputation and, by extension, its value.

The quality of bookkeeping is important. If you want to make important and major decisions for your business, make sure to keep your books accurate because numbers can affect many decisions that you want to make as a business owner. If you need some help getting your books in order so you can get a clearer picture of what your finances look like, book a call with us today to find out how to get started!

How to Prepare Your Business for a Successful 4th Quarter

Fourth quarter planning is crucial for business owners as it sets the stage for a successful year-end and prepares your business for the challenges and opportunities of the upcoming year. Here are some key areas to focus on during your fourth quarter planning:

  1. Budget Assessment: Evaluate your current year’s budget and compare it to actual results. Identify any variances and adjust your budget for the next year accordingly.
  2. Cash Flow Analysis: Ensure you have a clear understanding of your cash flow situation going into the fourth quarter and prepare a cash flow projection for the next year.
  3. Tax Planning: Review your tax situation and assess opportunities for tax optimization, such as making necessary deductions or contributions before year-end.
  4. Prepare year-end financial statements, including profit and loss statements, balance sheets, and cash flow statements, for internal analysis and potential reporting to stakeholders or investors.
  5. Review and update your business plan and long-term strategic goals. Identify areas for growth, diversification, or cost-cutting.
  6. Conduct performance evaluations and set goals for the next year. Consider offering incentives or bonuses to motivate and retain key employees.
  7. Ensure that all financial records are organized for year-end tax reporting. Consult with a tax professional to take advantage of any available deductions or credits.
  8. Plan your holiday marketing campaigns and promotions to boost year-end sales. Consider how you’ll carry this momentum into the first quarter of the new year.
  9. Assess the need for equipment, technology upgrades, or facility improvements. Budget for necessary capital expenditures and plan for financing if needed.
  10. Ensure compliance with all regulatory requirements, including business licenses, permits, and industry-specific regulations.

Going into the fourth quarter, many businesses pull out all the stops to source new business and bring in whatever income they can. But the 4th quarter also provides the perfect opportunity to assess the financial health of your company and ensure a strong start to next year. Need help with the financial side of things? We’re here to help!

3 Things That Scare Business Owners

What scares small-business owners? According to the survey, they are most worried about:

  1. Taxes
  2. Government requirements
  3. Poor sales

So what’s a nervous small-business owner to do? Instead of fretting about how government regulations, shutdowns, and debt defaults might affect your bottom line, channel your energy into focusing on what you can control: financial planning, customer retention (and acquisition), and risk management. Once you’ve got a handle on these, you’ll find that those other concerns are a lot less scream-worthy.

1. Financial planning.

Not knowing where you stand financially will cause much more stress than being certain. Once you know the reality of your financial situation (loan obligations, upcoming taxes, projected revenue, etc.), you can make spending decisions more confidently.

Bonus: With a solid financial plan, you’ll be prepared for the next tax bill or unexpected event.

2. Customer retention.

Dozens of studies have shown that improving the customer experience and retaining customers can save businesses money and increase revenue. If you don’t yet have a system in place for upselling existing customers and ensuring that they have a positive experience, you could be wasting money.

3. Risk management. Think about the types of natural disasters or financial blows (theft, lawsuits, etc.) that could impact your business, then devise a plan to manage them. How would you operate with damaged premises? What extra roles could your staff take on? With some proactive risk management, you can minimize the damage external forces can cause your business.

Bonus: When you take time to review your risk exposures, you can take action to fix the things most likely to cause a financial loss.

It’s normal for small-business owners to be worried – we all are. Instead, use that worry to fuel action. If you’d like to learn more about how we can help you prepare, take managing your business finances off your plate, and help you grow your business, schedule a call with us today!

End of Summer Bookkeeping Tips

It’s that time of year again, almost the end of summer, where school is about to start up and suddenly everyone’s schedules have changed and everything seems to be moving a million miles a minute. Now’s the time to get back into the swing of things!

Here are several tips (both personal and business) on how to keep from falling out of line this fall:

  • Put money aside in an emergency fund or savings account. This can come in handy for unexpected or unaccounted for expenses that could come up in the rush of things.
  • Organize your papers and receipts. This will help you in the future when it’s closer to tax season as well.
  • Try tracking your budget. Find out where all of your extra cash is going!
  • Communicate with your employees. Are their schedules or needs changing at this time of year at all? The new season is also a good time to go over employee reviews, gain feedback, introduce any changes, talk about policies, etc.
  • Continue networking. Attend networking events. Build relationships with neighboring businesses.
  • Check your finances. See if you need all of the subscriptions that you’re a part of, and double check your taxes and deductions, etc.

Looking for help with your business bookkeeping? We’ve been working with small business owners to free up more time, get more bookkeeping clarity, and create more cash flow in their businesses. Ready to learn more? Book a call to get started!

5 Useful Time Tracking Apps for Small Business

Time is the most valuable resource for small business owners. But in order to get adequately compensated for your time, you need to track how you spend it. Here are the 5 useful time tracking apps for small business needs.

1. Toggl: Toggl offers the ultimate in simplicity; just click to start the timer when you begin a task, and click again to stop it when you end it or take a break. Toggl also creates visual reports that show you how you and your employees are actually using your time and which projects are the most profitable. Toggl integrates with popular project management apps such as Asana, Basecamp, and GitHub. It works with one-person businesses or teams.

2. Timesheets.com: Timesheets.com works for both hourly employees and salaried workers who need to track billable hours or time spent on projects. Timesheets.com works with popular payroll companies including QuickBooks, SurePayroll, and ADP; you can also export the data into a wide variety of formats. There are even HR tools, including standardized documents and the ability to store documents privately so only relevant managers can see them.

3. TSheets: Employees can clock in on their smartphones via text, email, voice call, or even Twitter. Crew features let you send entire crew alerts at once or clock them all in and out at the same time. The drag-and-drop schedule creator makes it easy to schedule employees for shifts, such as retail or restaurant work, or particular jobs, such as landscaping or construction. TSheets is well suited for businesses with hourly workers, work crews, or mobile employees, such as field services or construction. It integrates with the most popular accounting and payroll software.

4. Harvest: This time tracking app creates visual reports that show you how much time your team is spending on each project. Employees can use the app’s timers to track their time or input it manually. With the mobile app, it’s easy to track time and billable hours anywhere. You can also track expenses by simply snapping pictures of receipts and automatically pulling data from Harvest into invoices.

5. Hubstaff: The Hubstaff time tracking app runs on computers or mobile apps and builds in plenty of employee monitoring tools. The app tracks mouse movements and clicks, takes random screenshots to show you what employees are actually working on, monitors employee internet use so you can see what websites they’re visiting, and even tracks which apps employees use the most. The mobile app uses GPS to track employees’ time and location on the road; employees can also track time on their mobile devices.

Need help choosing the right time tracking and scheduling software for your business—or any other aspect of managing your employees and your finances? Let us help you handle your business finances while you focus on growing your business.

Are You Ready for Fourth Quarter?

Can you believe it? 2023 is speeding by, and we’re fast approaching the fourth quarter. Are you ready for a strong finish? Could it make or break your business? We’ll explore some effective strategies you can put in place to achieve your annual goals and start the new year strong.

1. Evaluate your financial health. Start by evaluating your current cash flow. Small businesses should aim for at least 3 months worth of cash reserves to cover their expenses. That said, even through periods of uncertainty, businesses shouldn’t sit on large reserves of cash. If your liquidity is strong and you’ve got enough to cover you for the next 90 days, then invest in growth. In keeping with cash flow, it’s also a good idea to review your clients and highlight any late payers.

2. Invest in talent. With salaries and contractor costs accounting for up to 60% of your total expenses, your people are your biggest asset. Therefore, to help set you up for a strong fourth quarter, consider investing in your team. As the saying goes, “people buy from people”, and so by investing in your team members, your clients will enjoy working with a motivated, efficient, and highly skilled team, which will drive strong results for the end of the year.

3. Set up simple structures. If you want a strong finish to the fourth quarter, consider setting up simple structures to improve efficiency. By streamlining internal processes, you’ll make your workflows more efficient, which means a more productive team, which also will give you the competitive advantage to finish the year strong. Consider investing in software that automates time tracking and project management to help set up simple structures and operations in your business.

4. Design a three-month game plan. As we approach the fourth quarter, it’s time to sit down and devise a sales strategy and marketing plan to finish the year strong. To help you do this, you should first assess your current year-to-date performance. How was the last quarter? How are you tracking year-to-date? Aside from the goal-setting and sales plan, you should also design an aggressive marketing strategy to set up strong pipelines for the new year.

With year-end fast approaching, now’s the time for professional services firms to devise a plan to get ready and finish strong. You should also use the next three months to assess your financial health, invest in your team, and set up simple structures to ensure a strong start to the new fiscal year. Schedule a call to learn more about how we can help with your business’s financial health.

Summer Financial Health Check: Assessing Your Business’s Financial Well-Being

As the sun shines brightly and the temperatures rise, summer presents the perfect opportunity for business owners to take a step back and conduct a thorough financial health check.

Assessing your business’s financial well-being during this season can provide valuable insights and help you make informed decisions for the rest of the year. Here are some key steps to consider in your summer financial assessment:

1. Start by analyzing your income and expenses for the first half of the year. Identify any trends or patterns, and compare the figures to your initial projections. This review will give you a clear picture of how your business is performing financially.

2. Review your profit margins and overall profitability. Identify areas where you can reduce costs or increase revenue. This assessment can help you fine-tune your pricing strategies and budget allocations.

3. Take the time to adjust your budget for the second half of the year based on your financial assessment. Account for any changes in income, expenses, or business goals. A well-adjusted budget will serve as a roadmap for the remainder of the year.

4. Consider gathering customer feedback on your products or services. Satisfied customers are more likely to become loyal, repeat customers. Address any concerns or suggestions to enhance customer satisfaction.

5. Engage with financial advisors or accountants to gain valuable insights and expert advice. Their expertise can help you make well-informed financial decisions and set your business up for success.

Conducting a summer financial health check allows you to identify strengths, weaknesses, and growth opportunities for your business. With this knowledge, you can proactively address any financial challenges and build a solid foundation for continued success throughout the year and beyond.

Looking for help with your business finances? We’ve been working with small business owners to free up more time, get more financial clarity, and create more cash flow in their businesses. Ready to learn more? Book a call to get started!