We Are Moving!

Accounting Works Solutions is moving this week to a new address!  In the Westhampton area of RVA, near Grove & Libbie Avenues, our offices will be located at

     122 Granite Ave
     Richmond, VA 23226

We will be closed this week due to the move besides payroll services and resume normal hours next week!

Mon - Thurs: 9:00 am - 5:00 pm
Fri: Appointment Only

Please email us with any questions regarding the move!

Good Finances From The Beginning

Having a strong system in place at the inception of your small business is vital to tracking your growth and being prepared for unexpected expenses.  I've helped many small businesses put a system in place from the very beginning, which has helped them to continue growing their business and making their finance management easier than they thought it would be!

Starting A Business? Avoid the Usual Pitfalls with Good Financial Management
By Intuit

Looking to launch your own business? There’s good news for you: The small business segment is growing rapidly, and it’s a great time to start a business. According to the Small Business Administration, “While corporate America has been ‘downsizing’, the rate of small business ‘start-ups’ has grown, and the rate for small business failures has declined.”

As an entrepreneur, starting your own business is one of the most exciting times of your life. You wake up every day doing what you love. However, along with the pride and joy of having your own business also comes the often difficult (and daunting) task of managing aspects of your business that you are not an expert in. One such task is managing your finances and understanding your financial footprint. It’s a task that is often feared yet small business owners know that it’s a necessity to the survival of a business.

Small business owner, Nadine Quintero launched her own doula business, Fruits of My Labor Birth, in January of this year. She was excited to embark on her mission-driven business of helping women through the process of childbirth. However, even with 10 years of prior experience working with pregnant women, Quintero, like millions of other new business owners, is fighting against statistics: one-third of small businesses fail within the first two years because they run out of money.

At this point, you may be thinking, “How can I ensure long-term financial health for my business?”

It’s a no-brainer that financing your new business, sustaining the flow of money that comes in and goes out, and ensuring a steady stream of income is essential to the long-term survival of any business. Deeper knowledge about your finances and how to make smart business decisions as a result is also equally important. Similar to Quintero, the majority of business owners are experts on the service or product they build their business on; they’re not financial experts. According to a recent Intuit survey, only 40 percent of small business owners consider themselves financially literate, and two-thirds wish they knew more about their finances.

Good financial management is not just about knowing how much money you have in the bank. You need to understand your finances beyond balancing a checkbook and knowing what your finances indicate about the health and wellbeing of your business. Partnering with a financial expert, and integrating a financial management tool that best suits your business needs are two key decisions you should make early on. Not only should you look to integrate a financial management solution during the early stages of your company, you need to ensure that it can grow and adapt to the changing needs of your company. Once you deeply integrate a financial management platform, you don’t want to change. In fact, Intuit data found that 70% of new businesses buy accounting, payroll or HR services in the first 12 months. Only 7% of SMBs switch suppliers in a given year.

“A strong financial backbone can make or break any small business,” said Karen Peacock, senior vice president of small business at Intuit. “We’ve created QuickBooks to be that backbone, helping small business owners simplify and streamline their finances so they can focus on their customers and growing their business.”

According to a recent Intuit survey, 2 out of 3 small business customers say they’ve become more efficient since they started using QuickBooks. These businesses save an average of 6.4 hours per week on accounting activities since they started using QuickBooks.

In addition to QuickBooks, Intuit has created a number of resources to fuel small business success. Last year, the company launched the OWN IT Network, an online community of small business owners supporting each other in growing their businesses. For aspiring entrepreneurs, Intuit’s created a free tool to guide new business owners through the critical first steps on how to start a business. Finally, the Small Business Center is the ultimate guide for operating a small business, providing guidance, advice, insights and data to arm entrepreneurs with practical resources.

The most important lessons Quintero’s learned while starting her business: to learn from other people’s mistakes and to find the right experts to work with. While Fruits of My Labor hasn’t required extensive bookkeeping quite yet, Quintero is using QuickBooks to keep track of her early expenses and income and will hire an expert as her business grows. Currently, QuickBooks is providing Quintero the ability to track financial data from invoices and payments. And when she’s ready, the software will enable her to scale as her company grows, offering features that are more suitable for complex business operations and potentially even a channel for funding. Furthermore, she relies on experiences from other entrepreneurs to build a strong and successful business.

“As an early-stage business, I have a lot of decisions to make, from hiring employees to determining the best way to provide customer service to figuring out a payment model,” said Quintero. “While we’re trying to learn how to manage a business along the way, I’m comforted by the fact that QuickBooks helps solve for a fundamental part of my business.”

Intuit QuickBooks is built to fuel small business success by providing a robust ecosystem of cloud-based financial management solutions. Follow this series to learn about resources available to new and aspiring small business owners, including tips, tricks and anecdotes about financial management, aligning yourself with the right partners, and using the cloud and new tech innovations to achieve long-term success.

To view the originial article, visit Entreprenuer.com

Small Business Accounting Software: Use Free Software or Pay?

A big part of what Accounting Works Solutions does is help small businesses implement a user-friendly system (including software and accounting platforms) to meet with current and future accounting needs.  Whether that means invoicing, inventory cost estimation, tracking expenses, or payroll - it's important to plan for growth.  My experience is that when small businesses start from the ground up working with a professional accountant, they save time, hassle, and money.  If you get started with the correct platform right away, it can not only grow along with your needs but it can save you from having to learn an entirely new system once you've achieved your growth goals. 

How to Choose Between Free and Paid Small Business Accounting Software

By: Juan Martinez

As your company matures, it's important to determine whether or not you need a software upgrade to streamline business processes. This is particularly true in saturated industries. If dozens of reliable partners are available to meet your needs, how do you determine who to choose, how much to spend, and whether or not your choice tool is secure enough to handle your data? Perhaps no other industry creates this dilemma like the accounting software market.

With freemium, small business, and enterprise tools available, it can be difficult for small to midsize businesses (SMBs) to determine which solution is right for them. You might have the money to buy expensive software such as Cougar Mountain Denali Summit and Microsoft Dynamics GP, but do you really need all of that customization functionality and scale? Conversely, you might be able to get away with using free tools by companies such as Wave, but is the tool smart enough to handle more complex tasks?

To find out what SMBs should look for when choosing paid accounting software, I spoke with Scott Davisson, co-founder of Acclivity, provider of desktop-based small business accounting tool AccountEdge. I asked him about pricing, flexibility, security, and customer service.

1. Does Your Paid Software Do More Than the Core Four? 

Davisson said most of the free accounting tools can handle account management, expense tracking, invoicing, and sales. These are the bare minimum tasks that any tool should be able to help you accomplish, regardless of how much you're willing to pay.

"That's the core," said Davisson. "If all you need is to do that, then you're probably fine on a freemium model. As those needs get more complex…that's where you might start to evaluate your needs about what's out in the market and how much it costs."

Additional needs might arise that your freemium tool can't handle. If you need software that can handle things such as billing for time, inventory tracking and payroll, you're probably going to need to invest in a paid tool. Also, although most free tools can handle sales data, if your business has multiple departments, you might want to consider going with a more complex tool because most freemium tools won't allow you to enter sales data by department (rather, you'll need to enter the data as one lump unit).

2. How Flexible is Your Accounting Tool? 

One of the main reasons businesses select enterprise-level accounting software over lower-cost or freemium applications is that enterprise tools often provide limitless customizations that can bend and layer the software specific to each client's needs. Small business tools, such as the one provided by Acclivity, won't offer that level of complexity.

However, this doesn't mean you're stuck with what comes out of the box. Think about what third-party integrations your SMB software offers. Does it integrate with a customer relationship management (CRM) tool? Does it pull in data from your e-commerce software? If a small business accounting tool can provide you with multiple integrations and add-ons, then you might not need to spend big bucks on an enterprise-level platform.

"The software needs to be flexible enough to meet your needs," said Davisson. "But it's a tricky goal. Our software isn't for one specific type of industry. We need to have a solution that fits your needs, but we don't have that out-of-the-box customizability. We're sort of like a Swiss Army knife. Our add-ons give customers additional components that bolt onto the software to continue to make it relevant to their needs."

3. Is Your Software Secure? 

One of the main points of differentiation that you'll find between enterprise-class, SMB, and freemium accounting software is the level of security that your vendor intends to provide. If you're not paying a cent for your software, do you realistically expect Fort Knox-level security?

This is one of the reasons Davisson said his clients prefer on-premises software to cloud-based tools. "A lot of people are pulled to the cloud against their will," he said. "But they don't trust their finances in the cloud. It's about security and control."

AccountEdge is a desktop-based tool that can be expanded into the cloud with a companion app. However, Acclivity doesn't offer a cloud-only version of the tool. "Part of why we're seeing a lot of activity and interest is because, once we license the desktop software, you can put it on your own network, behind a firewall, it's yours," Davisson said. "In terms of security, that gives you the ultimate control."

This doesn't mean that cloud-based tools are inherently less secure than desktop apps. For example, Intuit QuickBooks Online Plus stores data on firewall-protected servers where the data is encrypted. When your data leaves the web browser, it's transmitted over Secure Sockets Layer (SSL) encryption technology. Intuit also lets administrators limit who can access specific types of data inside the tool should they decide to make certain information available to executive-level employees only.

4. Customer Service 

This one should be a no-brainer. The more competitive a market becomes, the more important customer service has to be. Can you reach your accounting software vendor if and when something isn't properly working? Can you reach them on the medium of your choice or do they force you to pick a specific communication platform? Are the service representatives speaking your language or did the vendor outsource its help desk team?

These are incredibly important questions you should ask each of your prospective vendors. It's highly likely that enterprise-level accounting software will offer 24/7 support, especially if you're willing to make five-figure annual payments or more. However, if you're trying to choose among a list of freemium and paid SMB tools, you'll want to closely investigate your service options.

To view the original article, click here.

How to Maximize Your Refund!

From Fox Business, comes great advice on how to maximize your return! That is - if you haven't already spent it somewhere else...!

5 Simple Steps to Triple The Value of Your Tax Refund
By: Chuck Saletta

According to the IRS, the average refund taxpayers received during the 2016 filing season was $2,732. That's a substantial chunk of change, but what if I told you that you could take that money and potentially triple its value for you by the end of this year?


Indeed, you can turn that average refund into over $8,000 toward your retirement by the end of this year, with absolutely no impact to your lifestyle. All you need to do is follow these five simple steps.

Step 1: Contribute your refund check to your IRA
For 2016, if you or your spouse are working, you can potentially contribute up to $5,500 each to either a Roth IRA or a Traditional IRA. If you're age 50 or up, that potential contribution increases to $6,500.

• Your taxable compensation for the year, if your compensation was less than this dollar limit.

A refund check of $2,732 fits easily within those limits, which makes it a straightforward way to turn your tax refund into money for your retirement.

Step 2: Increase your contributions to your traditional 401(k) or equivalent plan at work
Your tax refund isn't a gift from the Government. It's the return to you of an interest-free loan you handed Uncle Sam during the year by over-withholding your taxes. Take that money back and put it to productive use for yourself. You can contribute pre-tax money to your traditional 401(k) and get not only your money working for you but also money Uncle Sam would have otherwise taxed from you.

To fully make use of your refund check, increase your 401(k) contributions by enough to make up for both the refund itself and the tax you won't be paying on the contributed income. The basic math is Refund / (1-marginal tax bracket). If you're in the 25% tax bracket and got that typical refund, that would turn into $2,732 / (1-0.25) = $3,642.67.

Step 3: Adjust your withholding at work to get it closer to break even
In step 2, you invested the money that you had over paid Uncle Sam, but in doing so, you did decrease your take home paycheck. Key to making this plan neutral to your everyday lifestyle is to decrease the amount Uncle Sam withholds every paycheck. Using IRS Form W-4 or your employer's substitute, you can adjust your withholdings to make it so you won't be making another large interest free loan to Uncle Sam this year.

When you're making this adjustment, your objective should be to get close to break even when it comes time to filing your taxes next year. If you reduce your withholdings too much, you could have to pay underpayment penalties on top of any taxes you owe. The key is to be within one of the IRS' "Safe Harbor" limits. For 2016, the key Safe Harbor limits are:

• If you owe less than $1,000 in taxes for 2016 when it comes time to file in 2017
• You've paid at least 90% of what you owe for 2016 (66 and 2/3% for farmers and fishermen)
• You've withheld or paid via timely estimated tax payments at least 100% of what you owed for 2015 (110% if your income in 2015 was above $150,000 or if it's above $75,000 and your filing status is "married filing separately")

Step 4: Thank your employer for its 401(k) match
Many employers offer a match to encourage employees to contribute money toward their own retirement. Matches vary by company, but a common practice is a $0.50 match for every $1.00 the employee contributes, up to some percentage of salary. On that $3,642.67 contribution you made in step 2, a 50% match would be an additional $1,821.33, contributed into your retirement account, on your behalf.

Step 5: Count your cash
Your $2,732 IRA contribution from your refund check plus your $3,642.67 contribution to your 401(k) plus your employer's match of $1,821.33 brings your total to $8,196. That's triple your original refund amount, now working on your behalf to help fund your retirement.

Perhaps best of all, you just figured out how to save that $8,196 with no impact to your everyday lifestyle. Every penny of that money came straight from your tax refund this year, from the money that would otherwise have been a tax refund next year, and/or from your employer's matching program.

How often can you come up with $8,000 that easily?
As fun as it might be to hold that $2,732 refund check, wouldn't it be even more fun to see it turn into more than $8,000 this year? On top of that, once you've taken these five steps, that $8,196 will be in your retirement accounts, where it can grow tax-deferred on your behalf for the rest of your career.

That's an amazing opportunity available to you simply by choosing to no longer offer Uncle Sam an interest free loan, instead putting that very same stack of your own money to work for you. So get started today, and turn that tax refund into the foundation for your financial future.


To see the original article, click here.

The Richmond Wildlife Center Needs Your Help!

This is a cause that's close to my heart and they need your help to keep going. Your contribution is completely tax deductible!

The Richmond Wildlife Center is the first and only professional wildlife medical center in the Greater Richmond region providing veterinary and rehabilitative care to sick, injured and orphaned wildlife. We are the only professional veterinary facility in the area permitted to intake, treat and rehabilitate sick, injured and orphaned wildlife beyond their veterinary care through the eventual release of the animal back to the wild. We are also the only facility and wildlife rehabilitators in our area permitted by law to be in possession of,  permitted to transport or treat Bald Eagles, Golden Eagles and other threatened and endangered species.

Spruce Up Your Small Business Finances

With the sunny weather finally kicking in, it's a great time to review your small business finances so you can rest easy when comes to vacation time! This article has 10 great tips on how to clean up some of those financial cobwebs and increase efficiency.

10 Ways to Spruce Up Your Small Business Finances This Summer
By: Nate Matherson

After a particularly brutal winter, the summer months are a welcome shift. For small business owners, the change in seasons should be a reminder to do some cleanup and organization. After long months of building your business model, generating sales and managing your company, it is important to take some time to evaluate where you are and where you want to be. With summer around the corner, vacation plans are in full swing, and the pace at work usually slows down. It is the perfect time to organize your business and your finances.

Reevaluating your business operations can help you stay on the right track. Here are ten tips for getting your business finances in shape:

Analyze Your Income and Expenses:

Cash flow issues—especially old bills piling up—can keep your company from keeping up with payables. Pay any past due invoices and check your own past due receivables to see who owes you money. As an entrepreneur, with so much going on, it is easy to miss an invoice. A simple phone call or email reminder is usually all it takes to get paid the money you are owed. Be persistent, and if clients keep stalling, eliminate customers who are regularly late. And maybe for once, put together an updated balance sheet.

Look Over Contracts

From your technology systems to paper suppliers, your business probably has several contracts with different services. Each one is an opportunity to renegotiate for significant savings. Even if your contract is not up yet, you can still negotiate based on a potential early-renewal or an increase in services. If there have been any problems with the services, such as appointment no-shows, use that as leverage for a discount.

Get Your Records Together

As a small business owner, you probably have mountains of paperwork waiting to be filed. From invoices to purchase receipts, these documents are essential records for your business. File everything away or scan the documents and file them electronically so you’ll have everything at your fingertips when it is time to complete your taxes.

If you rely on accounting software, such as QuickBooks or FreshBooks, to manage your business’ finances, you may have missed important program updates. Most companies update their software every year, and if you are using the old version, you may not have new essential features. Consider using Bench or inDinero as newer, fresher, alternatives to traditional accounting software. Through personal experience, I can attest that managed accounting software can save you quite a bit of time and headache.

File Quarterly Reports

Many small business owners are shocked by quarterly and self-employment taxes. The next quarterly payment is due June 15, so now’s the time to review your income statements and expenses. If you’ve missed a deadline, talk to your CPA about how much to pay for the next tax period to minimize any penalties.

Hire Fresh Talent:

Summer is the perfect time to refresh your workforce. It is college graduation season and thousands of newly minted graduates are looking for entry level employment. Hiring recent graduates can be a great way to refresh ideas, processes, and culture at your small business. And, hiring to graduates is significantly cheaper than experienced employees. Hiring graduates is competitive. Hiring millennials is much different than hiring from previous generations. You should consider thinking outside the box with unique benefits and job responsibilities. Millennials are looking to make an impact and they might be able to give your small business a fresh boost.

Review Pricing Structure

Pricing is one of the most challenging areas for a new business. If you price too low, you give the impression of substandard quality. Too high, and you’ll lose out on customers. As your company has grown, you likely negotiated special deals or discounts with clients and, as a result, your pricing structure is irregular. Compare your services and costs those of your competitors to see what you should be charging.

Check Subscriptions and services

Over time, you may have signed up for programs or services that made your life simpler for an individual project, then have gone unused and forgotten. These recurring subscriptions add up, so take some time to review your statements and cancel any subscriptions you and your staff do not use regularly. Use tools like Trim or Truebill to find and remove unwanted subscriptions.

Set New Goals

Since the summer is usually slower, it is a perfect opportunity to do some planning and a mid-year checkpoint. Evaluate how much progress you have made, where you flourished and where you struggled and establish new goals for the rest of the year. Looking at your income receivables will help give you concrete targets for the next six months.

Establish Credit

If your business has been performing well, you should start planning how to scale up your business operations. Expanding and growing your capacity requires money, and many small businesses rely on credit to meet their needs. If you’ve been relying on your personal credit card and bank accounts, it is time to break away and open up a business checking and credit account. The credit card can give you much needed liquidity in times of emergency or opportunity so you can be nimble and respond to new challenges.

Increase Efficiencies

Entrepreneurs often find creative ways to get things done, often on the cheap with no budget at all. While the do-it-yourself route can be useful when building your business, it is not always the most efficient. Use the summer months to research and learn new processes or programs to streamline your operations, whether it is new software that manages inventory or a more secure online store. With Cloud technology, many of your programs and accounts can be synced together and automated, reducing the amount of time you spend on administrative work.

If you find yourself with a smaller to-do list than usual, take advantage of the slow period and spruce up your finances and business operations. Eliminate distractions by turning off your phone, closing your email and shutting your office door, so you have the time and space to get organized and create a more efficient and cost-effective work environment. It takes a conscious effort and dedication to go through your accounts, processes and forms, but the commitment can produce high returns and set you up for a successful second half of the year.

To read the full article, click here.