4/25/24

If you found yourself avoiding your books in 2023, and your books fell behind, and you were unclear about your profit margins, cash flow, and expenses—it's time to outsource your bookkeeping! Don’t ignore your business finances. Start right now. What can you gain by outsourcing your bookkeeping?

1. You save staffing and payroll costs. Adding a bookkeeper to your payroll will end up costing you more in insurance, benefits, and training expenses. Even if your in-house bookkeeper works part-time, your payroll costs will be high since you still have to cover the cost of employment taxes.

2. You have access to a pool of experts and resources. An in-house bookkeeper often operates solo, which means they can run into unforeseen delays or problems without the resources to consult for assistance. They may also lack the necessary experience to adapt bookkeeping systems that support changes and expansions you make in your business.

Outsourcing your bookkeeping to a professional bookkeeper gives you access to a deeper knowledge pool of experienced financial experts. An outsourced bookkeeper often manages the books for a variety of clients, so they’re more likely to stay up-to-date with state and federal changes that may affect your business now or in the future.

3. You have more time to focus on your business. Many small business owners discover the hard way that bookkeeping is a tedious and time-consuming task. In fact, the average small business owner spends eight hours a month completing their books—that’s a full day of work! About 100 hours a year! By outsourcing this task, you can focus your attention on growing your business.

4. You will enjoy a stress-free tax season. Was this past tax season a bit hectic and stressful? An outsourced bookkeeper is an invaluable resource when tax time rolls around, since up-to-date financials are essential when you need to file your taxes. Your bookkeeper can provide you or your accountant with the information necessary to prepare your taxes accurately and quickly.  You may actually enjoy your next tax season!

Start saving time for what’s most important—growing your business—and outsource your bookkeeping to me! Click on my Contact page to book a time on my calendar, and let's chat soon.

4/8/2024

If you’re one of the many that receive a tax refund, here are simple ways you can spend it that can help your overall financial picture.

Here’s a highlight of the five smart ways to spend your tax refund:

1. Pay off your credit cards. This is an easy opportunity to cut down credit card debt and spare the woes of compound interest.  And, man, it feels good to pay it off completely!  

2. Pay off some of your student loan. If you have one, paying off a portion of your student loan will put you in a better position for this year.

3. Create an emergency fund. Was the recent bill from your auto mechanic higher than expected? Worried about the unexpected expenses that are bound to pop up? If you don’t have any savings but are debt-free, use this as a golden opportunity to start one.  A basic emergency fund of $1,000 is a great place to begin, working toward 3-6 months' worth of expenses to cover a job loss or major emergency.

4. Make An IRA Contribution. Were you a late bloomer in the retirement account game? Are you behind on contributions? Do you have an IRA? Use this refund as a chance to open a retirement account and make a contribution.

5. Reinvest your refund back into your business. Perhaps invest into hiring new personnel or a business coach. Investing in personnel is a necessary expense for any small business that wants to ensure its long-term growth.  Plus, those personnel and advisors' fees are completely tax deductible!

Was this list not useful because you haven’t filed yet? What are you waiting for? I can help you get prepared and connect with a local CPA. Contact me today.

1/22/2024

As a business owner, financial responsibilities can be complex, especially when it comes to tax obligations. One crucial aspect that often surfaces is dealing with 1099s. In this quick guide, we'll discuss the common scenarios in which a 1099-NEC might be issued:

• Independent Contractors: Businesses must issue a 1099-NEC to independent contractors, freelancers, or other self-employed individuals who have provided services and received $600 or more in compensation during the tax year.

• Freelancers and Consultants: If you hire freelancers or consultants for services and their total compensation reaches or exceeds $600 within the tax year, you are required to issue a 1099-NEC.

• Rent Payments for Business Purposes: If your business pays $600 or more in rent to an individual or entity during the tax year, you may need to issue a 1099-NEC.

• You don't have to issue 1099-NEC forms to C-Corporations and S-Corporations. In general, you don’t have to issue 1099-NEC forms to C Corporations and S Corporations. But there are some exceptions, including:

• • Medical and health care payments

  • Payments to an attorney

  • Substitute payments in lieu of dividends or tax-exempt interest

• Payments to 1099 vendors made via credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don't have to.

It's essential to keep accurate records of payments made and consult IRS guidelines to determine when 1099 reporting is required. Failure to issue the required 1099 forms may result in penalties.

And here’s a final tip: Always get the W-9 before you issue payments to any vendor who may be required to get a 1099-NEC. Less-reputable vendors might not be around when you need their information at tax time.

Need help getting your books in order and organized for this tax season? I can help! Schedule a call today.

12/12/2023

The entrepreneurial journey can be a rollercoaster, and I want to help you stay on top of the ride. Here are 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 in your Google Calendar can help you stay organized, and automatically remind you of important meetings or tasks.

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 your boundaries too far. Take a step back and regroup. Facing the challenges of managing your business finances? I’m here to support you every step of the way.

11/28/2023

It's that time again!  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.  Feel free to print this out and use it as a checklist! 

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, balance sheet and cash flow statement. 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.  This is actually the easiest way to prepare a budget - look at the previous month (or same month last year) and prepare a spreadsheet with estimates for the new month.  

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.

11/7/2023

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 I have 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. I’m here to help you navigate the season with confidence and peace of mind.

✝️Proverbs 3:5-6