Three Ways That Good Bookkeeping Can Help Your Small Business

June 16, 2018 Finance Tips

Bookkeeping help for small business owners is available almost everywhere.

Bookkeeping is vital for keeping the details of your income and expenses up to date. It also helps you to keep you tax compliant and managing your finances efficiently. Most business owners tend to rely more on their in-house bookkeepers for almost everything, but this shouldn’t be the case. It is highly recommended that you try outsourcing bookkeeping. As a business person, it is at least advised that you don’t have any influence in matters of your finances, that way, there won’t be any conflict of interest.

Why bookkeeping for small business owners is critical? Also, where do you find bookkeeping information?
Small business accounting books for owners can be found in bookshops and libraries. Without them, it’s nearly impossible to record transactions accurately. You can find bookkeeping information by contacting your nearest bookshop, or by contacting a practicing bookkeeper.
Ways into which bookkeeping can help your business:

Allows you to plan, be tax compliant, and much more.

Bookkeeping can be used for financial and legal management purposes. The importance of bookkeeping is way beyond staying organized, it improves spending and ensures accuracy. Bookkeeping meaning in accounting deals with recording transactions.

An old adage says that the only two things that are certain in life are death and taxes. If there’s one thing Americans hate, it’s paying taxes.

How much do Americans hate paying taxes? According to a survey from WalletHub, one in four Americans would gladly get IRS tattooed on their body for a future free from taxes. What’s more, another 11 percent of those surveyed would name their first-born child Taxes.

For as much as Americans hate paying taxes, there’s no denying that it’s important, and not paying them could have some dire consequences:

About 1.1 million people will be audited by the IRS each year and a third of those audits are conducted in the field by IRS officials.
The IRS can audit any business tax return within three years of filing and it can collect back taxes owed for up to 10 years. As an example, if a 2017 audit of a return filed in 2015 finds discrepancies in previously filed returns, then the IRS can collect back taxes owed between 2007 and 2017.

With so much at stake, it pays to know what to do and how to do it correctly when it comes to paying taxes every April 15. For small businesses, especially Mom and Pop stores, paying taxes correctly and on time is crucial and following the right steps can save you and your small business a lot of hassle.

- Follow the Numbers: In the midst of growing a small business, it can be easy to neglect bookkeeping. But a lack of bookkeeping help comes with consequences. Not keeping track of receipts and expenses can lead to a mess when tax time rolls around.Rather than scrambling, there are plenty of bookkeeping services to help ease the stress of keeping track of expenses. Companies like QuickBooks and GoDaddy offer bookkeeping services online and they also have apps, allowing businesses to keep track of their finances on their phones if they so desire.
  Bookkeeping services can also give your small business a forecast of how it’s doing financially to better inform important decisions going forward. Good bookkeeping services also offer sound advice from tax accounts and certified public accountants when it comes to tax preparation, business consulting.
- Be Careful With Borrowing: Borrowing money is essential when most small businesses are getting started, but borrowing must be done carefully.It’s important for businesses to provide a full report of how much they plan to borrow and how they plan to spend the money. It’s also important to keep track of interest rates on loans, but paying back a loan too fast can also be bad for business, leaving a business short of needed money.
- Be Confident With Decisions: When running a small business, especially one that you own, every decision big and small is important. Decisions must be made with confidence and when it comes to tough decisions, trusting your instincts is key. Having confidence in your decision will help your business grow and might make customers more confident in your business.

To avoid tax problems, good bookkeeping services are essential. Keeping track of the flow of your money will allow you to make better decisions in the long term and short term and be confident about where your business is headed.

Republicans Join Business in Warning on Global Tax Talks

June 4, 2018 Get Rich City

3 Types of Loans You Might Need Right Now

June 4, 2018 Finance Tips

Loans have garnered a bad reputation of burying you in debt when you least expect it. However, these banking services really are designed to help you. There are many different types of loans that are offered including small business loans, mortgages and home loans, student loans, and even car loans. Below are the three most common types of loans that you might need to consider.

The most common type of loans that people get are home loans, also known as mortgage loans. These loans have actually started becoming less common today as fewer people actually own a house compared to the past several years. However, the current available home equity rate is at an all-time high at more than $13 trillion meaning you can get a higher loan than in years past. For a comparison, this number was only at approximately $6 trillion in 2011. These loans have the Continue reading 3 Types of Loans You Might Need Right Now →

The Facts On Luxury Living Spaces

April 26, 2018 Finance Tips

Luxury living spaces are the preferred types of living places for most consumers in the United States. Once you enter the real estate area where you are looking at luxury homes and luxury apartments, most new properties are similar in terms of design. They will often have new appliances, nice amenities, and spacious floor plans. However, it is everything outside of the luxury living spaces that deserve attention.

Finding new houses or luxury apartments for sale often comes down to what is around the luxury living spaces and not what is inside. As an example, most people will want to live in an area that directly caters to their needs. This can come in the form of a beach, for instance, if they are buying a vacation home.

A poll was conducted amongst vacation home buyers which revealed that just about 36% of all vacation buyers ended up purchasing a property in a beach area. It also revealed Continue reading The Facts On Luxury Living Spaces →

5 Considerations When Choosing a Bank

March 6, 2018 Finance Tips

If you’re trying to find a bank to fit your needs, you may feel a bit overwhelmed by all of the options available to you. Should you choose a credit union, an online bank, or a bank located in your area? And what should you prioritize when choosing a bank? Although there are a lot of factors to keep in mind, these five are among the most important.

Fees and interest rates
Chief among your concerns should be the fees your bank might charge and the interest rates they offer. If you don’t plan on opening a savings account, their interest rates might not matter as much; however, if you are opting to open a saving account, you’ll want to choose a bank that offers higher interest rates on your deposits. You’ll also want to take interest rates into consideration if you eventually want to apply for a loan from your bank. But no matter what kind of account you open, fees matter. Your choice of bank shouldn’t charge you for basic account transactions (like monthly fees or assistance from a representative). ATM usage fees should also be a factor if you plan on using your debit card frequently.

Mobile banking availability
In this day and age, most people do look for banks with mobile banking services. Banks with mobile internet banking will often offer online bill pay, transfer services, and online account statements. It’s a way to keep track of your spending and saving without having to wait for a monthly statement to arrive in the mail. If mobile banking options are important to you (and they probably should be, if you want to go paperless or conduct a lot of activity online), make sure your bank is equipped to meet your digital needs.

Security and other protections
You can never be too careful with your financial information and identity, especially where online accessibility is concerned. When choosing a bank, make sure to ask about the security they offer for your funds. Banks should be protected by the Federal Deposit Insurance Corporation, while credit unions should have protections from the National Credit Union Association. You should also find out how your bank regularly handles fraudulent transactions and identity theft. But that’s not the only kind of protection to be concerned with. Overdraft protection can be a real life-saver for many account holders, but not every financial institution offers it. Be sure to ask about these offerings prior to opening an account.

Customer service
Although there’s a lot that’s computerized these days, there will be a time when you need to speak to a human representative. Whether you have a question about your account, have a concern about a transaction you didn’t make, or need help resetting your mobile banking password, you’ll need assistance quickly. Your bank’s customer service representatives should be helpful, friendly, and help put your mind at ease. Whether you choose to visit a local branch or opt to get help via phone or online chat, you deserve to be satisfied with the service you receive.

Accessibility and/or location
There are people who are perfectly fine with having a bank that exists only online, while others want to be able to visit a branch in person to deposit checks and ask for assistance. In a perfect world, you might want both options. When choosing a bank, having a physical location nearby can offer valuable peace of mind in case something goes wrong. And if you’re not able to opt for direct deposit with your job but don’t like mobile banking, you’ll need a branch in your area. Operation hours and processing time for funds may also play a part; after all, you’ll want to be able to access your accounts whenever you need them.

Choosing a bank isn’t always easy, but these considerations should be a good starting point for this important decision. Always do your research and take your time when weighing the pros and cons of one institution over another.

Why a Credit Union Might Be the Best Choice for You

February 7, 2018 Finance Tips

If you?re making financial decisions, it might be worth thinking about the possible advantages of using a credit union over a bank. If you?ve never heard of credit union auto financing, or didn?t know anything other than a bank was possible to use for savings accounts, checking accounts, and loans, read on to learn about what makes a credit union different, and then three ways to save money using a credit union bank rather than a standard bank:

How is a Credit Union Bank Different From a Regular Bank?

Banks are owned by investors who are storing your money, serving you in various ways, and maybe even paying you interest in exchange for using your money to make money for themselves. A credit union is owned by the customers, which often allows them to offer more interest on savings and lower loan rates. Banks are taxed as for-profit organizations, while credit unions are considered not-for-profit.

Try Credit Union Auto Financing

If you?re trying to get a car loan, you want to get the lowest interest rates you can. A credit union is more likely to listen to you than a commercial bank, so if you?ve been turned down in the past because of credit history, they might be more amenable to your request. They also typically offer lower rates. The average rate of interest with a commercial bank is 4.16%, which the average credit union auto financing rate is 2.82%. For a $30,000 loan, that?s a savings of $215 a year.

A Credit Union Theoretically Has Your Best Interests At Heart

This is of course not universally true. There are bad credit unions just as there are some great commercial banks. But looking at motives, credit unions have a lot of motivation to do what?s best for you and no real ?institution? that?s looking after itself primarily. Big banks are motivated primarily, and often only, by the turning a profit.

Credit Unions Usually Save and Make Your More Money

Credit unions have much lower expenses and have a more favorable tax situation than a commercial bank, since they are not-for-profit organizations. This means the fees on accounts and ATMs are usually lower or non-existent. In fact, a lot of credit unions will reimburse their members for ATM fees they might incur by using a machine in another area. They also allow members voting rights in how the union is managed, and return surplus income in the form of dividends.

There?s a lot of good reasons to consider moving your savings account out of that big Wall Street bank and into a local credit union. You?ll save on fees, get better home loan rates, and credit union auto financing is often the best available. If you?re tired of keeping all your eggs in one basket, consider taking some of your money out of that commercial bank and look into joining a credit union near you.

How to Prepare for Tax Season Now

December 13, 2017 Finance Tips

The holiday season has flown up on us and before we know it, it will be a new year. Soon after, comes tax season. Tax season can be overwhelming for both individual filers and business filers. Preparing now can reduce some of the stress associated with tax preparation season. These are some steps you can take now to prepare for the upcoming tax season.

Organize all of your documents

One of the most time consuming parts of tax season is gathering all of your needed documents to file. While you may not yet have your W2s and 1099s from employers, you can organize any other needed documents. These include documents that you will use to write off any expenses. If you purchase a new vehicle, house, or any business supplies during the year, you will need receipts in order to write them off. If you own a business, this retrieval process can be even more overwhelming and you will want to start gathering this information as soon as possible.

Choose an accounting firm

While some individuals and businesses choose to file their taxes alone, others prefer to have an accounting firm handle it. Although accounting firms cost money to work with, they can usually get you a bigger refund or a smaller tax payment. They are aware of expenses deductions that many are not. They can also file for extensions when you need more time to gather your necessary documents. One of the most important benefits of working with an accounting firm is the protection you receive during an audit.

Protection from audits

The IRS can audit any businesses tax return within three years of filing, and it can collect back taxes owed for up to 10 years. If you were audited from a tax return many years ago, it is unlikely that you even have those documents around anymore. Most accounting firms are aware of these time limits and keep customers records on file for the required time. If you are audited, they can handle the process for you. Additionally, audits are probably more common than you think. Individuals that filed a Schedule C (Profit or Loss from Business) with gross receipts of $25,000 to $100,000 were audited at a 1.9% rate in 2014, while those with gross receipts of $100,000 or more faced a 2.3% audit rate.

Save up for owed taxes

You can start your filing process at the beginning of January. Otherwise, tax forms and tax payments are due somewhere around April 15, depending on what day it falls on. If you wait until the last minute and find out that you owe, this could be a significant financial strain on some families and businesses. When you file early or let an accounting firm crunch your tax numbers early, you have more time to save up for the upcoming tax payment.

To research business tax requirements

Owning a business often requires a lot of research. Additionally, once tax time rolls around, you will find that there is even more research involved with business tax. For example, the R and D (research and development) tax credit can amount to up to 13.5 cents of credit for every qualified dollar. This could fall under another advantage for using a tax accounting firm

Tax season is closer than you realize. In the next month, you will begin receiving tax documents from any source of income from the last year. Right now is the time to begin organizing your tax documents and getting ready to file. If you are going to work with a tax professional, you will want to secure one as soon as possible, as they are going into their busiest season of the year.

6 Tips for Surviving an IRS Audit

November 30, 2017 Finance Tips

If you are like most Americans, you may worry about getting a letter from the Internal Revenue Service (IRS). Many people live in fear of having their taxes audited. Whether or not you file on your own to go to tax advisers for help, there is always the chance that the government will want to do a tax audit on your. This is not the time to panic. Here are some things you can do to get through it.

Make sure your records are in order. You do not have to be surrounded by tax advisers to know that it is always in your best interests to keep good records. If you keep track of your spending and other records throughout the year, when tax season rolls around, you will have everything you need to either do your taxes or get some help. Having all of your documents in order will also help if the IRS wants to do an audit on you. You should keep all of your tax records and receipts for three years. That should be extended to seven years if you take a loss for a bad investment.
Do not panic if you do not have your records. If something has happened to your records or if you were not great at keeping everything, do not panic. There are ways to go back and recreate the records of your spending and tax payments. If some of your expenses are related to your business, think about how you paid. If you used a credit card, you can get the receipts. If you are looking to make deductions for medical bills, you can get copies of those.
Learn about the process. Your tax advisers can help you negotiate the process but if you go into the process with some idea about what will happen and how, you will be in a much better position. In the first place, it will reduce your stress level. There is a lot of information on the IRS website to help tax payers understand the process.
Get professional help. If you have received a notice that you are the subject of an audit by the IRS, you should talk to your tax advisers about hiring someone to help you deal with the government. You need to understand the process but also need a professional to get you through. A person who has been trained in tax law and will know what your options are. Tax law is very complicated so you want an expert who has worked in this area a lot to help you make it through your audit.
Do not lose your composure. When you get a notice from the IRS, they will set a date and time. If you and your tax advisers are not able to make that time, you should be able to change it. The IRS may be frustrating to deal with but you will do yourself no favors by getting upset with the agents who are working on your case. Be as polite as you can be. When you go in to meet with the IRS, dress professionally and try to be as organized as you can be. You want the very first impression you make on them to be a good one.
Never think you can win the IRS personnel over. Some people go into their meetings with the IRS and are surprised to see that they really like the people working on their case. That is fine, there is no reason to not like them. By the same token, you should not get the mistaken view that these people are on your side or that you should become friends with them. They believe that you have made some grave mistake on your taxes, whether this was on purpose or by accident does not matter. Never fill any silences with more information. Having an expert by your side can prevent you from talking your way into more trouble.

The IRS audit process can be scary. Having good tax advisers by your side can help you a lot. Another point to remember is that the IRS agents make mistakes, too. You will make it through your audit.

Tips Every Company Should Know About Auto Lead Generation

November 24, 2017 Finance Tips

if you’re trying to secure more leads for your auto company, there are several ways that you can achieve this. Generating auto leads does not need to be time-consuming and difficult, and it can really help grow your business.

Did you know that auto financing interest generates a whopping $98 billion in revenue each year? The average borrower has $17,966 in debt, and 43% of people choose to finance their vehicle. Which means lots of leads are available out there, we just need to pull them in. Auto lead generation is actually pretty simple.

Here are some ways your business can find low credit score auto leads.

1. Have a blog content strategy

One of the easiest ways to reel in individuals looking for auto loans is to post thoughtful and engaging content on your blog. Put yourself in the shoes of the consumer, and think about what kind of information you would want to be reading about if you were in their situation. Write smart pieces about this information and share it with them on a blog. This way, it shows that not only you understand them, but you have the knowledge to help them out and to help them understand what your role in helping them is.

Starting a blog is quite simple and doesn’t need to cost a lot of money. You can hire a freelance writer to write 1-2 articles per week, or even less frequently, but you want to make sure you have enough content on your blog to keep readers engaged.

2. Email promos

If you’ve has past customers, you need to be sure that your sales team is keeping in regular contact with them. Offer promos through email blasts to try and reel these customers back in. You could also offer referral bonuses or some kind of reward for people bringing your company friends and family they know can benefit from a car loan. This method of auto lead generation is great because it’s very cost-effective, and you can track the feedback on your email to see what is working and what is not (some email systems even offer analytics to show the open rate. etc.), which can help with future auto lead generation.

3. Cold calls

Of all the auto lead generation strategies, this could be the most difficult, just because it takes people with thick skin to make cold calls. You know there are going to be people who do not want to be bothered with sales calls and can be pretty nasty in their responses. Know that you are just doing your job and do not need to be pushy, however, if an individual is being difficult, thank them for their time and simply move on. With people being so busy these days caring for their family, working, and taking care of other properties, it might be hard to catch people on the phone. This is why email messages work great for auto lead generation because they can view it whenever they want.

Do you have any other ideas for auto lead generation? Let us know in the comments!

Four Reasons, Besides Selling, that you Might Need a Business Valuation

November 10, 2017 Finance Tips

You don?t plan on selling your business anytime soon. In fact, you are still growing your business and you are excited to see where it will go and how large you can make it. Why then, do you need a business valuation report? Isn?t a business valuation report primarily for selling your business? Not always. Business owners go through the process of a full business valuation analysis for the following reasons.

To create a growth business plan

If your business plan is to grow 50% or even 100% within the next two years, what are you measuring your growth success on? It can be difficult to measure results, without first getting a business valuation report. The information from the business valuation report will give you a starting number that you can base future business growth results on. You can also use this information later on if you do decide to sell, to show how quickly you were able to grow. A solid business plan is one that shows hard numbers and comparisons and a business valuation report can help you do just that.

To obtain financing

Many business owners rely on financing to expand a business. However, you will find that most banks or lenders are not willing to give you funding unless you can prove your business success. You will need a strong business valuation calculation to prove your worthiness of funding. When you apply for financing, you will be required to provide specific documents. Creating a business valuation report requires many of these same documents, so you will already have access to them. Business valuation is actually a largely economic analysis exercise. The company financial information provides key inputs into the entire process. The two main financial statements you will need are the income statement and the balance sheet. To do a proper job of valuing your small business, you should have about 3 to 5 years of historic income statements and balance sheets available.

To understand business growth struggles

Many small businesses will face a number of struggles, especially in the first couple of years of business. There are few methods for overcoming these struggles and for preventing them from failing the business. One of these is by doing a competitive analysis. Look at your competitor?s success and compare it to your own. What are you doing the same? What are you doing differently? Can you take any of their methods and apply it to your business to overcome the struggle?

When you use business appraisal services, you can get an even better idea of how well your business is doing when compared to your competitor. You can often determine the value of your business by using these three approaches, by comparison to recent sales of similar businesses, based on the businesses earning power and risk assessment, and based on the company?s assets. Specifically looking at the comparison of recent sales of similar businesses, you can accurately gauge your current business worth.

Important factors that might influence your business valuation report

It is important to understand, however, that there are many factors that can influence your business valuation report. The specific comps valuation method or business valuation resources used can affect the outcome. Additionally, it might seem surprising at first that the valuation results are influenced by your need for the valuation, but business value is not absolute. It is a process of measuring business worth, which depends on two main key elements, how you measure business value and under what circumstance. In formal terms, these elements are known as the standard of value and the premise of value.

While the majority of business valuation reports are obtained with the intent of selling the business, there are also many other reasons that a business might order a report. Determining the business valuation number of your business can help with your business growth, allow you to compare to competitors, and give you insight into current growth struggles as a business.