Cash Is Key for Small Business!

A Secco Valentine

     There is a reason that Secco is one of my favorite clients...the WINE (duh!).  So, I'm here to say that there's no better way to spend your Valentine's Weekend than at Secco Wine Bar in Carytown. They're offering an amazing and affordable Prix-fixe dinner service throughout the entire weekend. The best part? No reservations necessary!  So why not spend the evening with your special someone enjoying relaxed but elegant dining and wine pairing at prices that won't make you paranoid about spilling anything!  To check out this event, see their Facebook Event Page.

4 Reasons DIY Bookkeeping Can End Up Costing You More

While many people only think of accountants at tax time, a big part of my job, more than preparing taxes, is bookkeeping for local businesses.  While finances are my number one priority, small business owners are very busy and tend to put it off for more urgent matters.  But unfortunately, around this time of year, finances are what becomes urgent and you have a year’s worth of book reconciliation to do.

Here is why the DIY route to bookkeeping will end up costing you money instead of saving it:

1.  Faulty bookkeeping will give you a faulty picture of your cash flow, which from all of my previous advice, you already know that cash-flow is the lifeblood of your small business!  Don’t obscure your financial viability.  Without accurate records, you won’t be able to tell how to fix a financial problem or even if there is one in the first place.  Dangerous!

2.  Overestimation or Underestimation of profits means that you’ll either pay more in taxes on income you didn’t actually receive, or you’ll raise the eyebrow of the IRS on cash you didn’t know you needed to report.  That includes reporting assets and expenses that can lead to a higher tax liability as well (i.e. depreciating assets).  Overlooking costs or misplacing receipts means you can’t write those expenses off, either.

3.  Payroll problems can arise if you have inaccurate records.  How do you know if you’re over or under compensating employees or their benefits with inaccurate bookkeeping?  Answer: you can’t.  An error that carries over to an employee’s W-2 from your own records causes tax problems for them as well.

4.  Who owes you what, what do you owe? When?  Unorganized invoicing means the longer it takes to get you paid.  It also means the longer it takes for you to send money you owe which leads to late fees and penalties.  Being backed up on your bills and incoming payments is a serious cash flow issue.

Ultimately, bookkeeping mistakes are extremely expensive and very time-consuming.    Hiring an expert like me to fix them will cost you a pretty penny I don’t mind saying.  However, hiring an accountant for regular bookkeeping can be a great decision.  It gives you the power to maximize your business decisions, like knowing when to make investments in equipment,  inventory or even more staff.  Accurate bookkeeping is what gives you, the small business owner, information on how best to run your business.

Self-Employment: Time is Money

     What do they say about knowledge, time and money? Time is money, power is knowledge.  This is a guiding principle for many of the small business owners I know and work for.  As such a hands-on entity and resource for your own growing business, you know the pressure of time and often can’t find enough of it in a day.  Which is why when it comes to tax time, many of you go into a frenzy.  Why?  Because you feel powerless because you don’t know what you should do or should’ve done to prepare for the inevitable April 15 deadline and you know you’ll lose money because you don’t have the time to research all of the credits and exemptions your business qualifies for.  

     Saving you thousands of dollars from the tax man is what I do for a living, which means your business has the best growth it possibly can.  By keeping you organized, I know the ins and outs of what you can qualify for, as well as advise you on the best times to make certain investments back into your company.  What’s the best part?  My fee can be a write-off for you.  I save you money by saving you time and I give you the power to navigate the tricky tax waters through my knowledge of all things tax-related. 

 To use industry lingo—  the bottom-line is, if you’re a small business owner, finding an accountant is one of the smartest business moves you can make this year!