Tag: baton Rouge la cpa

How Accounting Helps You With Business Decisions | Best CPA Baton Rouge

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Accounting and financial reports might seem complicated and time-consuming, but they are crucial to the success of your business. When it’s time to make big decisions, accounting data helps you choose the option that’ll help guide your business.

The following are five ways accounting helps you make decisions in your business. 

Loans for small businesses

Businesses, both new and established, may need to consider a business loan. A startup or an expansion of an existing business might require financial backing. So, how do you know if you need a business loan? It’s all about accounting.

Using accounting information, you can determine whether your company has enough money to fund its venture or if you need financing to do so. Lenders need your accounting information to determine whether you’re a good candidate for a loan. They need to know you can pay back what they lent you, plus interest. 

Your financial data enables creditors to make informed decisions about the amount of money you can borrow. A lender may refuse to extend you a loan if your accounting information is poor, if you lack money or collateral, or if you have already accumulated debt. Regardless, they need to look at your accounting records. 

For business loans, you’ll need the following documents:

  • Income statements
  • Statements of cash flow
  • Business tax returns
  • Balance sheets

Operating a business

By using accounting, you can make better decisions about your general day-to-day operations. Taking a look at your accounting information allows you to determine how efficient and effective your current procedures are. 

To check whether your financial statements are up-to-date, you can compare them with industry standards. If not, you can make the necessary changes to make your operations more efficient.

Your accounting information also shows how profitable your business is, meaning how much you make from the effort you put in (your return on investment). Having a lot of sales doesn’t mean your business makes a profit. When you have a ton of debt to pay off, it might cancel out the money you make from sales (your revenue). Accounting lets you know how well you’re using your assets (items of value to your business) to create your products or services. Accounting allows you to compare your cost of sales to your profit margin. 

Capital investments

In a limited company by shares, investors can buy shares of the company and receive a share of its profits (known as dividends). Potential investors use accounting to decide whether or not to invest in your company—or how much to invest. 

What are the ways investors use your accounting information? The purpose of this is to determine your company’s value and to perform a credit analysis to assess your ability to provide a fair return on investment. Accounting assists investors in making decisions by showing them your company’s financial health. 

As an example, an investor might ask to see your income statement to determine where your income comes from and if it’s consistent. Investors may invest in your company if you show a steady income. Accounting serves to show investors the potential profit and risk of investing in your business.

Creating a budget

Any business needs a budget to prevent overspending and wasting money on non-essential expenses. Additionally, you can use your budget to see where you have spent money in the past and determine if those expenses were necessary to provide your products and services.

Accounting data helps you make well-informed decisions about how to spend your money. When writing your budget, you should use accurate, complete, and current financial information. A CPA can assist you and answer questions like these.

What was your profit or loss last year?

Has the cost of sales gone up or down?

Are there any items on your website that don’t sell that you can remove?

Is it possible to replace items with anything that will be more profitable?

Among the documents you need for budgeting are:

  • Accounts receivable
  • Accounts payable
  • Beginning balances
  • Balance sheet
  • Profit and loss statements

Having these documents available will facilitate the decision-making process when writing your budget.

Marketing

To attract more clients or customers, businesses need to spread the word about what they offer. Both marketing and advertising are essential expenses for marketing your business. 

Accounting shows you how much you need to spend on marketing and advertising. It also shows you how much money you made from those campaigns. 

If you spend a certain amount on a paid ad campaign but don’t see a noticeable increase in traffic or sales, you might need to shift your focus. Alternatively, your campaign might have resulted in a big increase in sales, but the campaign cost more than the revenue increase. 

Accounting plays a critical role in helping businesses define and manage their financial health. Accounting is essential to making informed financial decisions about everything from marketing to business loans. Getting it right is essential! We are here to help you. Contact our accounting firm today to learn more.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Working With a Remote Accountant | CPA Baton Rouge LA

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Before COVID-19, remote accountants might have seemed crazy, but COVID-19 has proven that remote accountants work great and are here to stay. In the last year, several small businesses have had to deal with unforeseen expenses. During various phases of your business’s development and growth, small business accountants can assist.

It is common for small business owners to fall behind in accounting and bookkeeping, but this is the last area where you want to make mistakes. In tough economic times, managing your finances is key to a successful business. Those who work closely with an accountant will tell you that a small business accountant is an absolute necessity. According to a study conducted by Intuit, the maker of QuickBooks, TurboTax, and other financial software packages, 89% of small businesses see more success when they work with an accountant or advisor.

Your company may benefit from hiring an accountant at different stages of its growth. Every step of the way, from a business plan to the formation of a company to a tax audit, an accountant can ease your burden.

Small business owners who want to save money may think they can not afford an accountant. But consider how long it would take you to do certain tasks (such as taxes), and ask yourself, would that be a good use of your time? As a result of the pandemic, especially during uncertain times, it is paramount that you focus on other core areas of your business, such as retaining loyal customers and generating new and creative marketing ideas.

Let’s say it takes you 13 hours to file your taxes and your time is worth $100 per hour. Filing your taxes yourself would cost you $1,300. You always run the risk of making mistakes, especially if you’re multi-tasking like most business owners. Furthermore, there is much more to accounting than just filing your taxes, so the time spent may exceed 13 hours.

In the past few years, remote accounting has become more popular. You must facilitate your remote accountant with the proper records and accounting tools from your side for them to keep your books reconciled and your taxes straight throughout the accounting-from-home landscape. Remote accounting is not only on the rise but is also here to stay.

Consider implementing these trends to ensure your small business’s financial success.

  • Use cloud-based accounting software: Cloud technology has emerged as the most integral component of accounting technology trends. Due to the technology built into cloud-based accounting software, you can share access with your accountant from anywhere.
  • Embrace automated accounting: As a small business owner, you have a lot on your plate. Rather than wasting time on redundant, labor-intensive chores, you can automate them with software and focus on things that matter.
  • Strengthen Your Cyber Security: Hackers target small businesses more often since they are more likely to be at risk. It is important to remind your employees that they are just one click away from a cyber attack. Remind them to use strong passwords and to limit access to networks and buildings.
  • Gain Comfort with Forecasting & Analytics: In today’s business world, small businesses are likely to use forecasting, analytics, and budgeting applications to better understand their cash flow and make better decisions. It will give you better visibility into your business, better operational efficiency, deeper financial insight, and keep you on top of your business.

Although there are many types of virtual accounting services available, there is only one that is right for your business. Choosing a service with experience in your industry will enable them to offer the best advice for your company.

Don’t assume you should do your bookkeeping just because you can. Let us help if financial tasks are taking a lot of your time and are affecting the success of your business. It will free up your time so you can focus on growing and running a successful business. Get in touch with our accounting firm today.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

5 Reasons Your Small Business Needs an Accountant | Baton Rouge LA CPA

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It is challenging to run a small business, and there is not always enough time to handle every task effectively. If you are allowing some tasks to slip through the cracks, or if you would like to prevent that from happening, it’s time you considered hiring an accountant. Let’s take a look at the benefits:

It will save you time.

As a small business owner, your most valuable asset is your time. It is possible for business owners to manage and save time by streamlining tasks, assigning the right employee to the job, and working efficiently. If you are responsible for managing all of your company’s accounting and payroll functions, you may be feeling excessive pressure to get everything done. Keeping records may require you to learn a new accounting software program, but you do not have the time to do so. Bookkeeping, payroll, and other general accounting tasks should be performed by a professional to save time and avoid costly errors.

You will save money.

As a business owner, it is understandable that you wish to reduce costs. In the end, that is what intelligent owners do: minimize expenses and maximize profits. However, if you think hiring an accountant will be an unnecessary expense, think again. It may seem as if you are saving money by performing your own accounting, but in the long run, an accountant can save your business a great deal of money. They can reduce the risk of costly tax errors, provide sound advice about business decisions, and help you make the most effective business decisions. 

You will receive valuable advice.

Managing your taxes and payroll is just one aspect of an accountant’s advice. Almost every business decision you make involves financial considerations. Whether you are planning to hire new employees, launch a new product, or expand your operations, you will need to know the projected costs, any additional tax implications, and your potential return on investment. All of these issues can be addressed by your accountant, which puts you in the best position to make the best decision for your business.

Your business plan will be supported.

This is essential for new startups or anyone planning to launch a business. Accounting firms draw upon their experience to assist business owners in understanding how much money their businesses should be generating and projecting out over those first few crucial years so they know what to expect. Information such as this is useful when preparing the financial section of your business plan because it permits you to set realistic goals with respect to expenses and cash flow.

You will benefit from sound financial advice.

An accountant is an expert in financial matters. As long as you are not in the same profession, they are better equipped to make the most of your money than you are. Choose an accountant who has experience working with clients in the same business as yours, so that they will understand what you do and what to expect. This is of particular importance when it comes to making major financial decisions. Using your accountant’s experience, you may be able to minimize risk and achieve a better outcome than if you made uninformed financial decisions.

Remember, you can count on the experts for assistance with the aspects of your business that matter most, such as finance. With the help of a qualified accountant on your team, you will be able to enjoy these benefits and more by freeing up your time to focus on what matters most-running your business-thus reducing your stress levels. Your business will run more smoothly, and there will be a lower probability of errors in critical areas such as taxes and payroll.

Take advantage of the insights we have gained from years of experience working with small business owners. Contact Apple Guerin Company LLC today to schedule a consultation with our Baton Rouge CPA .

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

What You Need to Know When Buying a Business | Baton Rouge LA CPA

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What You Need to Know When Buying a Business

The process of purchasing a business can be daunting but worthwhile. You can diversify your income in a meaningful way depending on your involvement. In some cases, you may be able to purchase a business and earn a passive income, whereas in others you may need more managerial skills. If you intend to acquire a business, you must carefully examine its financial documents before making the purchase. 

The decision to purchase a business requires careful consideration and extensive research. One of the biggest mistakes people make when purchasing a business is discovering that it is not as successful as they initially believed. You can avoid making this costly mistake by gathering the right information. 

If you are purchasing a business, you must ensure that it has a proper accounting system in place. To estimate the profit of a business, it must be regularly audited and all revenues and expenses accurately recorded. Depending on your relationship with the owner, you may be restricted in your ability to examine these documents. However, every piece of documentation you receive should be thoroughly examined. If you are unfamiliar with these financial statements, you may wish to seek the assistance of an experienced accountant.

In some circumstances, there may be a need to seek the assistance of an intermediary to facilitate the sale of a business. When this is the case, you must ask the right questions to ensure that you fully comprehend the situation. If you believe that the financial statements of a party are not transparent, you may wish to consider taking a different approach. You should consult with your accountant in this situation to ensure that the questions you ask are appropriate.

Once you have concluded your sale, you will also need to accurately report your taxes. When purchasing a business, you will need to gather and report several details. If you wish to learn more about the expenses associated with your business, you would be better served by consulting an accountant. A professional accountant has handled similar sales and can assist you in the process. Using such a service will reduce your stress as well as ensure the proper filing of your taxes.

If you would like to learn more about our services, our Baton Rouge LA CPA will be happy to assist you. We invite you to schedule a consultation with Apple Guerin Company LLC today.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Getting the Most Out of Your Business Expenses | AG Company

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Woman working on balancing financials AG Company

Tax season is one of the most stressful times of the year, especially if you are dealing with specific deductions. It is critical that you keep a record of your business expenses, even if it is a tedious process. A business owner, however, can end up being audited or overpaying taxes in the event that they fall behind with their tax management.

To effectively manage these deductions, the first step is to use proper bookkeeping practices. If you are able to properly track all of your business expenses, it will be easier for you to determine which of them are tax-deductible. If you want to grow your business, you will need a strong accounting department that uses streamlined systems. Some of these strategies include using accounting software, utilizing digital receipts, utilizing specific bank accounts, and regularly reviewing the business finances.

If you are looking to utilize accounting software, you’ll need to see which options fit your business. The right software will help you automate many aspects of your bookkeeping while maintaining financial integrity. These software systems can also categorize your expenses to better understand what should be deducted. If you are struggling to find a software solution, it may be best to consult with a dedicated accounting organization. 

If you choose not to utilize dedicated accounting software, you’ll want to still digitize as much as you can. Paper records can be difficult to store and organize in a reliable manner. For any business receipt you utilize, be sure to digitize it in some way. It may also be wise to store these files on a cloud-based system to ensure there isn’t a single point of failure. If all of your receipts are stored on your home computer, you may be in trouble if disaster strikes.

At the end of the day, none of these tips will be of use if you do not regularly review your finances. Proper bookkeeping will always include regular reviews to ensure that no mistakes were made the first time around. Be sure to audit your own finances on a quarterly basis at a minimum. If you have the resources to do this even more frequently, you’ll be ready when tax season approaches.

If you are having difficulty keeping up with your business bookkeeping, you might want to consider inviting an accountant to help you before it is too late. Please contact us today for more information.

Apple Guerin Company LLC
Phone: (255) 767-1020
Url: https://appleguerin.com/
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

The Road Map to Your Financial Future | AG Company

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Baton Rouge Accountant

A financial advisor is a partner in your financial planning. Assume you want to retire in 20 years or send your child to a private university in ten. To achieve your objectives, you may want the assistance of a competent expert with the necessary licenses; this is where a financial advisor comes in.

Together with your advisor, you will discuss a wide range of topics, including how much money you should save, the types of accounts you should maintain, the types of insurance you should have, and estate and tax planning.

They are not only financial advisors but also teachers. Among the advisor’s responsibilities is providing guidance on how to achieve long-term financial goals. A variety of financial topics may be discussed in detail during the educational process. Early in your relationship, budgeting and saving may be discussed. As your expertise grows, you will be able to understand more complex tax, investment, and insurance issues.

Prior to providing you with financial advice, it is essential that they first understand your financial situation. You cannot prepare for the future if you do not know where you are today. In most cases, you must submit a detailed written inquiry with your financial details. Providing this helps the advisor better understand your situation and ensures that important information is not missed.

Your financial advisor will gather information about your assets, obligations, income, and spending. In addition, the information provided should include future pensions and income sources, estimate retirement needs, and outline any long-term financial obligations. Simply put, you will create a list of all of your existing and future assets, pensions, gifts, and sources of income.

By providing investment information, an advisor can examine more personal matters, such as risk tolerance and risk capacity. When it comes time for your investment advisor to determine your asset allocation, knowing your risk can be helpful. It is also important that you make sure you explain your investment preferences to the advisor.

Financial advisors combine all of this preliminary information into a comprehensive financial plan that serves as a road map for your financial future. The initial assessment consists of reviewing the most important findings from the information you provided, followed by assessing your current financial situation, including your net worth, assets, liabilities, and cash or working capital. Additionally, a financial plan summarizes the objectives discussed with your advisor.

If you wish to learn how a financial advisor can help you with your financial goals, please contact us today. Our Baton Rouge CPA team is here to help you.

Apple Guerin Company LLC
Phone: (255) 767-1020
Url: https://appleguerin.com/
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Your Team Benefits from a CPA | CPA in 70808

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CPA in 70808

Making sure your business succeeds is a high priority for anyone who owns a company or is in a partnership. Succeeding means running your business in the most efficient manner possible, finding ways to grow revenue, lower overhead, maximize deductions, and minimize tax liabilities. With the help of our CPA in Baton Rouge, your business can achieve these goals so that you can concentrate on running the business. 

Financial specialists can help.

A business CPA specializes in corporate finance, just as you do in your field. CPAs who practice in your industry have an up-to-date understanding of the typical expenses, trends, and ways to lower tax obligations for your business. In addition, they understand where to purchase new equipment or inventory that offers the best return on investment and have the ability to save money every year by reducing depreciation on asset types specific to their industry.

Assess the financial health of your firm.

Generally, people think of CPAs in relation to tax matters. Choosing the right certified public accountant can provide your business with more than just tax advice; they can also apply their expertise to the overall model of your company. An experienced CPA can determine how to reduce expenses and increase profits. Accountants trained in this area can identify oversights and areas of inefficiency specific to a particular field.

An accountant will be able to make meaningful, actionable suggestions after analyzing your business finances for just a few months.

Tracking metrics and benchmarks: What’s the best way?

Benchmarking refers to a company’s performance metrics as compared to competitors and industry standards. A competent CPA does. An example would be, Ohio based businesses may not know how their business compares with those in California, Texas, or New York, but a competent CPA does. Analysts know the key performance indicators (KPIs) that govern each industry. This section includes client loads, profit margins, and active clients.

It’s common for business leaders to become captive to their customers’ needs and day-to-day operations; they may never pay attention to benchmarks or key performance indicators, which effectively frame and understand your company.

Accounting professionals are better suited to utilizing tools. They have experience in many industries. Our experts offer your industry-specific benchmarks, tax strategies, wealth building, and more. Learn additional information about how a CPA can assist you in growing your business by contacting our accounting office in Baton Rouge, LA today.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Revitalize Revenues by Increasing Investment | Baton Rouge CPA

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CPA in 70808

A business’s revenue tends to increase and decrease over time. A business owner who sees new business slow and income declines often cut back on marketing, as it is the item in the budget they deem most expendable. However, this is usually not the best decision according to our CPA in 70808. 

You will see a drop in revenue when you cut your marketing budget. You are effectively shutting the door to new business by cutting your marketing budget. There is fierce competition among companies, and many cannot afford to become obscurantists. When you are one of the few with little to no competition, you need to make sure people know you’re out there, what you offer, and any new services or products. Adding e-commerce to your marketing strategy requires reaching out to your target audience.  

Businesses cannot rely solely on word-of-mouth referrals in today’s competitive marketplace. It’s not enough to send postcards and emails once or twice a month to get new clients or customers. A scattershot approach is ineffective. Keeping yourself visible is crucial.

Your goal should attract new clients and engage and maintain your current clients’ loyalty. New services, specials, and the latest developments in your field should all be discussed. You can keep people informed quickly by using multi-pronged social media campaigns or email blasts.

Marketing efforts that are consistent and effective help you accomplish both goals.

As your marketing budget increases, your revenue increases as well. Your business should allocate a certain percentage of its budget to marketing based on the following factors:

  • Is your business new? Until you develop a client base, you may have to invest more.
  • Do you want to keep your business growing? Calculate your existing budget’s effectiveness by comparing the number of new clients acquired to the number lost each year.
  • Are things improving or deteriorating? At least until the trend reverses, consider investing an additional 5 to 10 percent.
  • Where does your local market stand in terms of competition? More investment is required to compete effectively in a competitive market.

Indeed you are aware of the latest marketing trends, and perhaps you have done your outreach, but is it the most effective way to utilize your time? Running the day-to-day operations of a business requires much time, and business owners are usually very busy. Outsource your marketing to professionals who understand your business. 

Contact our accounting office in Baton Rouge, LA to learn how to help plan your marketing budget and increase your business growth.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

An Accountant Can Help You File Your Taxes | CPA Baton Rouge LA

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cpa 70808

A business’s revenue tends to increase and decrease over time. A business owner who sees new business slow and income declining often cuts back on marketing, as it is the item in the budget they deem most expendable. However, our CPA in 70808 shares that this is usually not the best decision. 

You will see a drop in revenue when you cut your marketing budget. By cutting your marketing budget, you are effectively shutting the door to new business. There is fierce competition among companies, and many cannot afford to become obscurantists. When you are one of the few with little to no competition, you need to make sure people know you’re out there, what you offer, and any new services or products you may have. Adding e-commerce to your marketing strategy requires reaching out to your target audience.

Businesses cannot rely solely on word-of-mouth referrals in today’s competitive marketplace. It’s not enough to send postcards and emails once or twice a month to get new clients or customers. A scattershot approach is ineffective. Keeping yourself visible is crucial.

Your goal should be to attract new clients and engage and maintain your current clients’ loyalty. New services, specials, and the latest developments in your field should all be discussed. You can keep people quickly informed by using multi-pronged social media campaigns or email blasts.

Consistent and effective marketing efforts help you accomplish both goals.

As your marketing budget increases, your revenue also increases. Your business should allocate a certain percentage of its budget to marketing based on the following factors:

  • Is your business new? Until you develop a client base, you may have to invest more.
  • Do you want to keep your business growing? Calculate your existing budget’s effectiveness by comparing the number of new clients acquired to the number lost each year.
  • Are things improving or deteriorating? Consider increasing your investment by 5 to 10% until the trend reverses.
  • Where does your local market stand in terms of competition? More investment is required to compete effectively in a competitive market.

Indeed, you are aware of the latest marketing trends, and perhaps you have done your outreach, but is it the most effective way to utilize your time? Running the day-to-day operations of a business requires a lot of time, and business owners are usually very busy. Outsource your marketing to professionals who understand your business. 

Contact our accounting office in Baton Rouge, LA to learn how we can help plan your marketing budget and increase your business growth.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Avoid Employee Embezzlement | Baton Rouge Accountant

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Baton Rouge Accountant

As a business owner, you have a lot of responsibilities. Overseeing staff, monitoring financial transactions, and catering to clients’ demands can be overwhelming. You can avoid the risk of employee theft by putting safeguards and internal controls in place. It may seem hard to imagine that the smiling face you hired to welcome customers could be stealing from you, but business owners have suffered the loss of thousands of dollars annually with this kind of naivety. It can be challenging to prevent employee theft, but you can minimize the possibility of it happening by educating yourself and implementing measures to boost your financial security. Here are a few suggestions recommended by our Baton Rouge CPA.

Know Who You’re Hiring 

It’s not enough to hire someone based on their resume or personality. Anyone you consider hiring will likely handle confidential information, so a thorough background check is essential. Contact information for their past employers should also be requested. 

Learn as much as your employees.

Over time, employees can figure out which clients pay with cash, who writes checks, how much money is deposited daily and weekly, and what comes in from outside sources. You should also know this information. Request that your employees record these details in your accounting software, and ask your accountant to assist you in creating a system that includes a check and balance system with daily opening and closing reports. Therefore, only you or your accountant can run and analyze these reports-never an employee.

Create Shared Responsibilities

You should establish and implement a team-based approach to these tasks so that no single individual in your office controls the entire financial process from start to finish. In this way, you will know who recorded which transactions and will create a sense of accountability among your employees.

Be on the lookout for common red flags

Always be on the lookout for common signs that an employee might be stealing from the practice. Pay attention to anyone whose spending suddenly exceeds their budget, is always the first in and the last out of the building, or is overly protective or secretive of their work. 

Arrange a third-party audit

A victim of embezzlement can suffer significant financial damage, so it’s important to periodically hire an outside accountant to review your finances and look for irregularities. Using this person, you can monitor your employees’ work to catch errors, mistakes, and theft.

You shouldn’t tell anyone on your staff that something is amiss in your business, since the suspect may discover this and destroy incriminating evidence.  A trusted CPA can put a fool-proof process in place so you can catch your thief and get your money back where it belongs — in your business. We can answer your questions or schedule an appointment at our Baton Rouge, LA accounting firm for you to learn more.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808