More and more entrepreneurs and small business owners are relying on software and the internet for their accounting needs. Despite the fact that DIY solutions may save money in the short term, they can end up costing more in the long run. It is possible to find deductions unique to your industry with the assistance of an accountant who specializes in your field. By doing so, you may be able to avoid making serious financial mistakes in the future.
We are a local CPA firm with many years of experience and training. You can count on us for customized insights into your financial statements, cash flow statements, profit and loss statements, and any compliance issues that relate to your type of business.
Analyze spending patterns.
A business CPA can provide insight into spending patterns and potential opportunities for your business. We can help you understand the nuances of how your inventory is being managed, whether your pricing is competitive, and how your financing can be enhanced. Through these insights, we can also assist you in analyzing the areas of your operation that are ready for growth, what changes would be beneficial to you, and how you can plan for continued success.
A small business accountant provides you with the resources and guidance you need to make more informed decisions regarding the operation’s future. Although the internet and software can assist in organizing your finances, only a trained CPA can provide a tailored approach.
Local Bookkeeping Services
Are you in need of local bookkeeping services? Our firm provides ongoing financial accountability and insight into the financial health of your operation. By engaging a CPA with knowledge about your industry, you will be able to gain a deeper understanding of both the larger trends as well as the health of your business. By freeing up valuable time, you will be able to devote it to taking care of your clients and planning your next move.
Make sure your future is protected by an experienced CPA.
With many years of experience, a firm such as ours operates at peak efficiency. You will be able to avoid costly errors that may be made by a generic software program or by an accountant who lacks experience. Our team ensures that everything is completed on time and in full, so you are protected from audits.
As a small business CPA firm, we are confident that we can provide a number of benefits to your company. If you would like to learn more, you may schedule a complimentary initial consultation at your convenience. Please allow us the opportunity to provide you with insight into your type of business and discuss our wide range of services with you.
It is imperative to trust those who work for you; after all, you probably hired them and worked with them on a regular basis. Yet a wealth of statistics indicates that worker theft, including embezzlement, is on the rise. According to the latest Global Study on Occupational Fraud and Abuse, 95 percent of all businesses have experienced some form of employee theft.
What industries are most affected? The Association of Certified Fraud Examiners reports that banking and financial services have the highest number of occupational fraud cases. This is followed by manufacturing, government and public administration, healthcare, and retail.
In order to prevent worker theft, it is essential for business owners to implement safeguards and internal controls. By educating yourself and putting processes in place, you can minimize the possibility of this occurring and detect it early on. Here are some tips to help you get started.
Make sure you know who you are hiring.
You cannot select a new employee solely on the basis of his or her resume, recommendation, or personality. A professional background check should be conducted on any employee who will have access to confidential information. Checking references is also a wise idea.
Check for red flags of embezzlement.
Make sure your antenna is up to detect common theft indicators. Employers should pay attention if a staff member suddenly spends beyond their means, is always the first in the building and the last to leave, or is overly protective of their work.
Become familiar with all aspects of your business.
Delegating is a must, but you should also keep track of what is going on in each department or area of responsibility. Employees will learn over time which clients pay in cash, who writes checks, the average daily and weekly deposit amounts, and how much money comes from outside sources. Ensure that each employee maintains detailed logs in your accounting software. An accountant can recommend a program that includes a check and balance system with daily opening and closing reports. In this manner, either you or the accountant will be able to run and analyze these reports.
Shared responsibilities should be delegated.
You should not allow any individual in your office to control the entire financial process. Instead, implement a controlled team approach. In this way, you will be able to identify who recorded which transactions, and you will be able to provide a higher level of accountability.
Organize an outside audit.
You may suffer serious financial damage if you become the victim of embezzlement. This is why it is important to hire a small business CPA to audit your finances for irregularities. It is likely that he or she will be able to keep track of your employees’ work and identify errors, whether they are honest mistakes or intentional.
It is advisable not to inform your staff if the numbers in your business don’t add up, as the suspect may destroy evidence if you notify them. Speak with a trusted CPA first so they can put a theft detection system in place.
The use of an accountant as a neutral, expert third party is a smart defense against employee embezzlement. Contact our firm today to schedule a complimentary initial consultation. It is our goal to assist you in setting up the appropriate systems.
As a business owner or manager, you are accustomed to giving feedback to your employees, but are you also capable of receiving it? In order to grow, you need to learn how to solicit and leverage employee opinions regarding your operation and your leadership. As a business leader, here is how to gracefully accept feedback.
Actively seek opinions from others.
In the process of soliciting input, you give your team members the opportunity to provide valuable insight into the health of your operation. If you listen carefully, you may discover a money-saving innovation that changes the course of your business for the better of your operation. If you listen carefully, you may discover a money-saving innovation that changes the course of your business for the better. If you listen carefully, you may discover a money-saving innovation that changes the course of your business for the better. As small business accountants, we frequently witness transformations of this nature. Feedback, whether delivered in an informal water-cooler setting or in a formal meeting, provides an opportunity to improve processes. Make it a habit to solicit and reward constructive feedback in front of your team.
Take a constructive approach.
It is important to listen to feedback with an open heart and mind, to praise honesty, and to listen closely for growth opportunities.
Avoid reacting without considering the intent of the other person.
Learn why the person feels the way he or she does.
Ask clarifying questions to ensure that you understand the viewpoints of others.
Take time to digest the information, if necessary.
There is no harm in revisiting a discussion from a different perspective. Taking the time and space you need to use feedback constructively will allow you to better understand your leadership style. A thoughtful approach will also be welcomed by team members.
Take the time to reflect on your performance.
In addition to having a conversation with an employee or team manager, you can also learn about your strengths and challenges by reflecting on your own behavior. Track your successes and opportunities in a journal, and then analyze the patterns you find. Talk to a business consultant or read self-help books for insight.
The feedback you receive from your employees can provide you with an excellent opportunity to strengthen your business and leadership skills. In order to become an entrepreneur, you did not bend to outside criticism; you likely handled it strategically. Consider employee feedback in the same manner. If employee feedback inspires an idea for a new service line or financial savings, our small business accounting firm can help you turn that inspiration into reality. Contact us today to schedule a consultation. We are here for you.
Establishing your own success is one of the most exciting and fulfilling aspects of being a business owner. Entrepreneurs may work independently or as part of a partnership. Regardless, they’re at the top of their game. Being the CEO of a small business entails a number of additional responsibilities. It is extremely valuable for business leaders to invest time in ensuring the profitability of their businesses. In order to do this, you must have a thorough understanding of matters such as overhead, revenue, and marketing strategies. Here are a few tips to make your business more profitable.
Take a look at your expenses.
If a business is interested in increasing profit margins, this should be its number one priority. Leaders should keep a detailed record of their monthly expenses. Equipment, supplies, employee salaries, liability insurance, and rental costs or property taxes are included in this category. Examine this list carefully to identify anything that is not strictly necessary or that your business spends an excessive amount of money on. By cutting down on certain supplies, finding smart ways to limit your insurance payments, or even deducting more expenses, you may be able to reduce your overhead. Your overhead can be reduced in a variety of ways. All of them begin with a careful examination of your expenses. The use of a certified accountant is a very effective way to ensure that this work is done accurately and efficiently.
Identify growth objectives.
It is often the case that businesses without specific goals are their own worst enemies. You are more likely to fall into a state of complacency with your organization if you lack concrete objectives. Complacency, of course, leads to stagnation and a loss of profits. In order to increase profitability, businesses should map out where they wish to be in three months, six months, a year, and five years. Identify the number of clients you would like to acquire within each time frame, and develop strategies that will assist in achieving that goal.
Learn how to market online.
The majority of people looking for your business in their area will use the internet to locate you. Statistics indicate that 90 percent of Americans use internet search engines to locate local businesses. You are also included in this category. In order to gain a foothold in these searches and ensure that your business’s website is seen by as many people as possible, what can you do? Online marketing, in particular search engine optimization (SEO) marketing, is the answer. Search engine optimization marketing has one simple, powerful objective: to get a business’s website and content ranked as high as possible in search engine results. Today, where Google, Bing, and Yahoo dominate how we discover small businesses, this is an extremely crucial step in increasing profits.
We can help you make your business more profitable by providing expert advice and assistance. Contact us today. With our expertise, we can help your business reach new heights of success.
Is your business successful? How do you know? You can take a look at your online reviews; positive reviews indicate that you are doing something right. You can analyze your customer base; serving new or more customers every month means that the word is spreading about your business. You can also search online for your business—if it shows up near the top of the search results, you’re on the right track.
However, these methods are abstract methods of measuring success. A business’s true success is determined by its financial performance. Does your business generate a profit? Are you losing money? If a business isn’t performing financially, it can fail.
You can measure business success through a profit and loss statement. Along with a balance sheet and cash flow statement (more on that later), it is one of the most significant financial statements for your small business. Continue reading if you’re ready to discover your true business success.
How does a profit and loss statement work? Why is it important? A profit and loss statement, also known as an income statement, summarizes the income and expenses of a business for a given period. Profit and loss statements are typically generated monthly, quarterly, and annually.
Essentially, a profit and loss statement tells you if your business is profitable or losing money.
Profit and loss statements can be used to determine whether your business earns enough money to cover its costs and expenses. They also help to determine whether you can afford to pay yourself as a business owner and if your business model is sustainable.
Profit and loss statements can help you identify your top spending categories and where you might be able to make cuts if your profits aren’t where you want them to be. As a result, you can make informed business decisions-such as pricing your products and services-based on your lowest earning revenue streams.
Alternatively, if you’re doing well, the profit and loss statement can show you your top earning revenue streams, allowing you to concentrate on those. A profit and loss statement can chart your business growth, reveal sales trends, and provide you with the information you need to make smart financial decisions.
Profit and loss statements consist of three key components. Every income statement includes three main components, depending on your business’s income and expenses.
The amount of money earned (or revenue received). A company’s income or revenue is defined as its operating revenue or revenue generated by its primary business activities, such as the sale of goods or services.
Additionally, your profit and loss statement will include non-operating revenues or other income generated outside of your core business operations. Income from business capital, rental income, or strategic partnerships (such as advertising) all falls into this category.
A company’s income statement may also include gains or one-time non-business activities that result in income, such as the sale of a company vehicle or long-term assets.
Expenses The first expense on the profit and loss statement is the cost of goods sold. Materials and labor costs are included in the cost of goods sold by your business.
An organization’s primary expenses include employee wages, sales commissions, and utilities (such as electricity).
Other expenses or secondary expenses will also be included in the profit and loss statement. In general, these expenses are related to non-core business activities, such as paying interest on a loan, paying taxes, or paying one-time expenses such as legal fees.
Net income (or revenue) amount Last but not least, the profit and loss statement will result in a net income figure. An increase in this number indicates that your business is profitable. In the event that it is negative, you have spent more than you have earned.
Net income is calculated by taking into account all expenses, even unusual or one-time expenses. Thus, you can determine whether you earned or lost money during a given period. However, net operating income may be a better indicator of your business’s day-to-day operations.
Profit and loss statements: how to prepare them. How does a profit and loss statement look in practice? What is the best way to create one? Using accounting software such as QuickBooks, generating an income statement is nearly instantaneous. Your income statement can be accessed and reviewed at any time using QuickBooks, which tracks and organizes your business’s accounting data for you.
In the event that you do not use accounting software, a bookkeeper can prepare this report for you. If you are a new small business owner, an Excel income statement template may be a helpful starting point. As your business grows, it will become more difficult (and less accurate) to keep track of everything in Excel.
You can rely on our accounting firm for all of your accounting needs. If you require assistance preparing a profit and loss statement or have questions about how to do so, please contact us. We are always available to assist you.
Many people, especially small business owners, require advice about their financial planning—pensions, investments, retirement planning, and business protection, to name a few. A knowledgeable financial adviser can prove crucial to protecting your legacy.
Wealth management: what is it?
After a customer has signed a contract with a wealth management firm, the company provides advice to the customer on how to effectively manage their personal finances or investments.
What are the benefits of hiring an accountant?
The majority of accounting firms have a network of independent advisers who can provide impartial advice on any of the following topics:
Pensions: Are you considering investing your pot in order to receive an adjustable income? Do you plan to mix your pension options? Would you like to contribute more to your pension? Choosing the right accountant can be beneficial.
Planning for retirement: It is critical to prepare for tomorrow and beyond. When you reach retirement age, you may have amassed large sums in pensions, redundancies, or inheritances that you are uncertain how to protect.
Management and advice on investments: Understanding all the opportunities and associated risks will help you turn your pennies into pounds.
Tax planning for inheritances: Protect your family’s financial future, reduce your tax exposure, and prevent poor investment decisions.
Life insurance and critical illness coverage: There is no one who wants to think about the unforeseen and unexpected events that life sometimes brings. Therefore, it is all too easy to overlook the benefits that protection insurance might provide financially in the event of an accident, illness, or death. However, we insure our cars and houses without hesitation, so why not insure ourselves and our family members as well? Make sure that your loved ones don’t have to worry about money should the unthinkable happen.
Protecting your business: You need to ensure your business is adequately protected in case a key employee leaves. Directors and employees are fundamental to the long-term growth of a business.
Will writing: Many people do not have one, or believe it is too challenging to arrange, although it is one of the most significant documents you can have. With the help of an advisor, you can specify what should happen to your estate (whatever you own) and financial assets after your death.
Mortgages: Obtaining advice on the most appropriate mortgage for your circumstances will give you peace of mind when committing to such a major investment. As opposed to heading straight to your bank (who can only offer you their own products), advisers look around the market to find the most competitive rate for your situation, whether you are a private homeowner or a developer/landlord.
Whether by choice or not, life is often complex and inevitably involves change. A sound financial plan should be multifaceted and flexible enough to accommodate life’s unforeseen changes where possible. A professional adviser will make value-for-money recommendations and solutions based on your unique circumstances.
It is our mission as accountants to communicate complex information to clients with objectivity, integrity, and clarity in order to help customers readily comprehend the knowledge and advice that we are sharing with them. Please contact us to schedule a consultation if you would like to discuss any specific investment or gain advice regarding our wealth management services.
In order to succeed as an entrepreneur, you must be structured and ensure that nothing is overlooked. It is essential that you have an action plan in order to achieve your future goals. In addition, you need to know how to reach your customers effectively through marketing. It is important to stay on top of your finances to make the best decisions for your situation. Keep all invoices and receipts for this purpose. Your financial situation will be reflected in these reports.
Here are some tips for managing your business accounting.
Organize your expenses by category Separate your receipts into different envelopes or put them in a compartmentalized binder. You may not be able to deduct all expenses, so categorize them based on deductibility. Put a special stamp or write a note by category (100% deductible/partially deductible/non-deductible).
Keeping track of your sales evolution If you use accounting software, you will probably know the evolution of your sales. Additionally, you can pull out a cash flow statement to see how profitable the business is now. If you are not profitable, you may want to consider these options:
Take a look at your prices. Do you set the right price for your services? Calculate your hourly rate using this magic formula if you’re unsure: An hourly rate is calculated by multiplying the desired annual salary by the annual taxes, expenses, and holidays you would like to work.
Are you targeting the right niche with your marketing strategy? Are you using good marketing tactics and strategies to reach your potential customers?
Are your expenses too high? Is there any area where you could save money?
Take a look at your service offering: is it comprehensive enough?
Decide on a billing method In most cases, entrepreneurs have to charge their customers. Keeping track of your invoices and making sure they are professional and personalized is therefore essential.
Reconcile your bank accounts on a regular basis There is a tendency for entrepreneurs to neglect this part of their business. Bank reconciliation (or account reconciliation) is essential if you want to see how your finances are doing. Sometimes figures in your accounts don’t match those on your bank statements and vice versa.
Examine your financial statements on a regular basis When you are just starting out, it is a good idea to review your financial statements on a monthly basis. In this way, you will be able to gauge your financial health more easily. You will also be able to verify whether you are following the financial forecasts in your business plan. Quarterly financial statements are sufficient once you move out of the startup phase.
Get in touch with your accountant A good financial decision can only be made by an entrepreneur with the support of someone they can rely on. Your accountant can advise you on what steps to take next and what strategies to implement. Managing your business is your job, not doing the accounting.
You can count on our accounting firm for help. We invite you to contact us today for a consultation.
The process of starting a business often requires entrepreneurs to understand and complete a variety of business functions. Accounting plays an important role in starting a small business. Although entrepreneurs may fear sifting through endless piles of financial documents, accounting often provides the clearest picture of their business’ success. For tax and legal purposes, entrepreneurs must keep copious records regarding their small business startup.
Small businesses that started as a hobby or side business often use cash basis accounting. When cash changes hands, this accounting method records and recognizes the transaction. It provides entrepreneurs with a simple method for maintaining accounting records. Companies may need to switch to accrual accounting as they grow and expand. It records and recognizes transactions as they occur, regardless of whether money changes hands.
Estimates of future financial performance Banks, lenders, or investors may require entrepreneurs to provide a financial forecast for their new venture. This information is essential in order to obtain outside financing for the startup costs of a business. An entrepreneur usually writes a business plan, which includes an economic forecast, expected monthly expenses, and a pro forma financial statement. Lenders and investors heavily rely on accounting information to ensure the entrepreneur has an accurate and reliable picture of financial expectations.
Budget Expenses Creating a budget is one of the most important accounting functions for a small business. Various aspects of the business are outlined in budgets. Capital may be budgeted for hiring employees, advertising strategies, inventory purchases, and other business expenses. It is important for entrepreneurs to stick to a budget in order to avoid wasting money on non-essential business expenses. Small businesses can use budgets to track how they spend capital on consumer goods and services.
Analyze profitability In order to determine a company’s profitability, it relies heavily on accounting. Despite being able to generate high amounts of revenue, a small business may fail if it does not generate enough profits. It is important for entrepreneurs to understand how well they are using assets to generate services and how the cost of inventory compares with the profit margin of the company. In order to ensure that they are repaid in a timely manner, banks, lenders, and investors may also require small businesses to release financial information.
Expert Insight An individual public accountant (CPA) or public accounting firm can provide advice to small businesses. When helping entrepreneurs set up their small business accounting operations, professional accountants typically offer a wealth of education, experience, and expertise. Small businesses may also be able to benefit from lower rates from these individuals to help defer the costs of starting up. A professional can also help entrepreneurs file tax returns and ensure that all business matters are accounted for at year’s end.
Our accounting firm can help you get started on the right path if you are looking to start your own business. Schedule a consultation with our team of experts today.
As a business owner, you know that there are a lot of things to keep track of. You need to make sure that your product is high-quality, that your employees are happy, and that your customers are satisfied. But what you might not realize is that accounting is the most important thing for your business.
Why is accounting important?
Accounting is critical for any business, large or small. It provides owners and managers with information that they can use to make sound decisions about the company. Accounting also helps businesses track their progress and performance over time.
There are many different types of accounting, but all businesses should have at least a basic understanding of financial accounting. Financial accounting focuses on the financial statements of a company, which show the company’s financial health. These statements include the balance sheet, income statement, and cash flow statement.
While accounting may seem like a dry and boring topic, it is essential for all businesses. A solid understanding of accounting can help you make better decisions about your company and improve your business’s bottom line.
The benefits of good accounting practices
There are many benefits to good accounting practices. Perhaps most importantly, good accounting helps ensure the financial health of a business. It can also help businesses save money, avoid legal problems, and make more informed strategic decisions.
Good accounting practices are essential for any business, large or small. By keeping accurate records and making sound financial decisions, businesses can avoid many common pitfalls and set themselves up for success.
The importance of financial discipline
Many people believe that financial success is all about making a lot of money. While it is true that you need to have a certain amount of money to be financially successful, it is not the only factor. One of the most important things to remember is that financial success is about more than simply making money. It is also about having the discipline to save and invest that money wisely.
Without financial discipline, it is very easy to spend all of your money and never achieve your financial goals. If you want to be financially successful, you need to be disciplined about how you manage your money. You need to have a budget and stick to it. You need to make sure you are saving enough money for your future. And you need to be willing to make sacrifices in the present to achieve your long-term financial goals.
The bottom line: how accounting can improve your business.
Accounting is critical to any business, large or small. It provides essential information about a company’s financial health and can be used to make key decisions about the future of the business.
While many businesses view accounting as a necessary evil, it can actually be a powerful tool to help improve your business. Our accountant in 70808 says that by understanding the basics of accounting and using it to your advantage, you can make your business more efficient, more profitable, and more successful.
In conclusion, accounting is the most important thing for your business because it provides critical information that you need to make sound financial decisions. Without accurate and timely financial information, it would be very difficult to run your business effectively. If you need assistance with your accounting, please contact our Baton Rouge accounting office today to schedule a consultation.
A company’s inventory management is a crucial part of its profitability, but many small businesses don’t practice good inventory management when it comes to the products they sell. The shortage of inventory in some businesses means they are unable to supply enough available products to meet customer expectations. Often, this drives customers away, sometimes permanently to other businesses.
Alternatively, some businesses go the other way, overstocking items just in case. Although your customers will always have the items they need, this strategy may lead to you losing money. In addition to tying up valuable cash flow, excess inventory also costs more to store and track.
Inventory management lies somewhere between these two extremes. It takes more work and planning to achieve an efficient management process, but your profits will reflect your efforts.
The following are tips to help you effectively manage your inventory for increased profitability and cash flow.
Determine which items are most important.
Inventory can be classified into priority groups to help you understand what items you need to order more of and more frequently, as well as those that are important to your business but may cost more and move more slowly. Typically, our Baton Rouge, LA accountant suggests separating your inventory into groups A, B, and C. A-group items are higher-ticket items that you need fewer of. The C category includes items with lower costs that sell quickly. B items fall in the middle: they have a moderate price and move out the door more slowly than C items but quicker than A items.
Monitor all product information.
Keeping track of product information is important for inventory management. Information should include SKUs, barcodes, suppliers, countries of origin, and lot numbers. Consider also tracking the cost of each item over time so you’re aware of factors that may affect the cost, like scarcity and seasonality.
Conduct an inventory audit.
Businesses sometimes conduct a comprehensive count once a year. Other companies spot-check their hottest items monthly, weekly, or even daily. Many do all three. Regularly check your inventory to ensure it matches what you think you have, regardless of how often you do it.
Analyze the performance of suppliers.
Inventory problems can be caused by an unreliable supplier. If your supplier is habitually late with deliveries or frequently shorts your orders, it’s time for you to take action. Discuss the issues with your supplier and figure out what the problem is. As a result, you may need to switch partners, or you may run out of inventory due to uncertain stock levels.
Follow the 80/20 rule when dealing with inventory.
80% of your profits come from 20% of your stocks, as a general rule. For this 20%, prioritize inventory management. You should know how many of these items you sell in a week or a month, and closely monitor them. Don’t neglect the items that make you the most money; manage them properly.
Maintain consistency in how you receive stock.
It may seem obvious to make sure incoming inventory is processed, but do you have a standard process followed by all your employees, or does each employee handle incoming stock differently? The tiniest discrepancy in how new stock is taken in could have you scratching your head at the end of the month or year, wondering why your numbers don’t align with your purchase orders. Check that all staff that receives stock does it the same way and that all boxes are verified, received, and unpacked together, accurately counted, and checked for accuracy.
Monitor sales.
Even though this seems like a no-brainer, it goes beyond simply adding up sales at the end of the day. Keeping track of what you sell and how many items you have in stock should be done daily. In addition, this data needs to be analyzed. Are you aware of when certain items sell faster or drop off? Is it a seasonal thing? Do you sell certain items on a particular day of the week? Are certain items always sold together? Maintaining control of your inventory requires understanding not just your sales totals but how items sell as well.
Place your own orders for restocking.
Vendors sometimes offer to reorder inventory for you. The idea seems beneficial at first glance—allowing someone else to manage the process for some of your items can save you time and staff. However, your vendors may not have the same priorities as you. They want to move their items, while you want to stock items that will be most profitable for your business. Check your inventory and order restocks for all of your items yourself.
Invest in inventory management software.
If your business is small enough, you can manage the first eight items on this list manually with spreadsheets and notebooks. However, as your business grows, you’ll spend more time managing inventory than you do on your business or risk your stock getting out of control. Inventory management software makes all these tasks a lot easier. You should make sure that any software solution you choose meets your needs, offers the analytics your business needs, and is easy to use.
Make use of technology that integrates well.
Stock management doesn’t have to be limited to inventory management software. Mobile scanners and POS systems can help you stay organized. Prioritize systems that work together when investing in technology. Having a POS system that can’t communicate with your inventory management software isn’t the end of the world, but you might spend a lot of time transferring data from one system to another, which can result in inaccurate inventory counts.
Inventory management is a crucial part of the financial management of your business. For more helpful information, contact our accounting firm in Baton Rouge, LA to schedule a consultation.
