Author: Marie Martin

  • What Can a Bookkeeping Service Provider Do for My Business?

    What Can a Bookkeeping Service Provider Do for My Business?

    Running a business is no easy task. There is a lot that you need to look after and countless business decisions to make every day.  it can be an incredible responsibility. It’s important to understand that no matter how good you are, there is just so much that you can do on your own.

    One area where business owners like you can benefit greatly from a seasoned expert is in their bookkeeping and accounting. It is quite common for businesses to outsource their accounts to professional bookkeepers through a bookkeeping service. Only bookkeepers and accountants know how to manage payroll, accounts, finance, and taxes with ease and absolute accuracy. This is why it may be in your best interest to hire a bookkeeping service. Here is what a bookkeeping service provider can do for your business. 

    bookkeeping service provider helping a business owner

    1. Create a System of Internal Controls

    When you hire a bookkeeping service provider, you get to ensure that you have a dedicated professional who can create a system of internal controls for your organization. As only one highly qualified individual or dedicated bookkeeping team would be responsible for maintaining the books instead of several random employees with varying skills, the integrity of your financial information would be far safer and better organized. Bookkeeping firms offer a high level of accuracy and security for your company’s finances. 

    Once a system of internal controls is established, the risk of human error can be reduced significantly. Therefore, you would be able to rest assured, knowing that there would be a system of checks and balances in place to maintain the authenticity of the records. On the other hand, if you fail to implement such a system, your business will end up going bankrupt and it would be too late for you to do something about it. Besides, every successful business knows that internal controls establish a solid foundation for growth.

    2. Ensure Your Financial Records Are Accurate and Up-To-Date

    With a professional bookkeeping service by your side, you will be able to make sure that your records and accounts are up-to-date. There is nothing more frustrating than not knowing whether your accounts are up to date. By hiring a bookkeeping service provider, you’ll benefit from accurate and timely account information which keeps your business financials in top order. This means you have exactly the information you need most to make sound business decisions.

    Also, since everything would be handled on a cloud-based QuickBooks-centric system, you would be able to access the latest information from your business finances whenever you want and from wherever you want.

    Entities today often need to use cloud and other virtual technologies to improve collaboration between their employees. This helps integrate business functions and ensures that only authorized users can access necessary data and documents. Bookkeeping and accounting service providers use technologies that business owners can access and collaborate with. This means your workflow and theirs are in sync. On top of this, your bookkeeper will handle the month-end entries and other tasks so that updating everything is off your shoulders and always timely. 

    3. Provide Peace of Mind

    One of the main reasons why businesses of all sizes outsource their bookkeeping or accounts department is because it provides much-needed peace of mind. Forget about experiencing any accounts-related issues when you hire someone who has significant expertise. Your service provider offers all their services within a secure environment, protected by encryption, and multiple layers of additional security measures. 

    With information technology taking over, you need to have an expert handling sensitive financial records and data. Otherwise, you will place your business at risk. The bookkeeper commits to protecting your financial data so you can focus on running your business. 

    4. Pay Your Employees on Time

    In addition to the above, a bookkeeping service provider will make sure that all of your employees are paid accurately and on time. Whether you pay your workers on a monthly, weekly, or daily basis, you’ll be glad to know that your bookkeeper will be on top of every transaction.

    Payroll processing should always be handled by a professional. This ensures legal compliance and empoyee loyalty. In order to maintain your productivity levels and encourage employees to work hard, you have to pay them on time and keep their records accurately. This is where a bookkeeping service provider will come in handy. There’s little to no room for human error when it comes to navigating withholdings, taxes, and other details. 

    The service provider is likely to offer payroll processing. This would mean that all paychecks, tax forms and payments, and even timesheet management, are taken care of. You will not need to stress, as everything would be taken care of.

    bookkeeper helping a business owner

    5. Reconcile Bank Accounts

    Reconciling financial accounts is an area where most business owners could use help. Only when you get account reconciliation right, can you expect transactions to match the details of your bank statements.

    Since accounts will be regularly reconciled, you will not need to pay overdraft fees or additional charges. Also, there would be no incorrectly recorded transactions holding you down and confusing your data later on. Even though accounting software has made reconciliation easier, a human touch ensures that every transaction and every financial detail is precise. 

    6. Manage Bank Feeds

    A bookkeeper can manage all transactions brought in from the bank feed. This ensures that each transaction is organized. So, no matter what kind of transaction it is, from equipment to travel, and from office supplies to bonuses, every transaction will be in its right place, categorized and accounted for with no uncertainty. 

    As for transactions not included in your bank feed, they would need to be entered manually into the system. These include handwritten checks and cash payments. Moreover, there would be a need to match deposits with customer payments to manage accounts. This, too, could be handled by your trusted bookkeeping service provider, depending on the service level you choose. 

    7. Handle Your Taxes

    Outsourcing your bookkeeping needs ensures an expert always handles your taxes. If you have a certified public accountant that files your taxes, you are going to need a bookkeeper who will serve as their first point of contact.

    Since bookkeepers have a more intimate knowledge of the books, you can rely on them to work with your tax preparer and have your small business taxes on point and filed on time. Your bookkeeper will also make sure that you are able to claim refunds, make payments on time, and apply any adjustments resulting from changes in your business’s tax status, business designation, or employee status.

    8. Prepare Financial Statements

    A bookkeeper will prepare all major financial reports for your business, which include the cash flow statement, balance sheet, the profit-and-loss statement, and many more. Having access to updated financial statements is necessary for making important decisions and better investments, along with monitoring costs. It ensures that you have a clear picture of your operating expenses and your bottom line.

    The balance sheet will show the balance of assets and liabilities, whereas the cash flow statement will let you know whether you have more inflows or outflows so that you can make necessary decisions for improving your cash flow situation.

    9. Make Useful Technology Recommendations

    The world of bookkeeping and finance has also seen many technological developments over the years. As you are unlikely to know about the latest solutions, you need an expert to help guide you so that you are able to harness the full potential of your organization through technological integration. Your bookkeeping service provider will also be able to suggest practical digital apps specific to your industry that will increase productivity and efficiency.

    business owner receiving help from a bookkeeper

    10. Fraud Prevention

    Lastly, you need to hire a bookkeeping service provider for your business as it helps with fraud prevention. If you only employ an in-house accounting team, your organization may be more vulnerable to fraud. Outside bookkeeping teams stake their reputations and continued success on transparency, honesty, and accuracy. They are known for their high level of professional integrity. 

    In Closing

    A bookkeeper can help your business succeed in a number of ways. They have the skills needed to keep your finances organized, keep you compliant, and help you make informed decisions. At the end of the day, you could use all the help that you can get to continue your upward momentum.

    Sound Accounts helps business owners succeed with industry-leading bookkeeping support and sound financial advice. Connect with us today to learn more about the difference Sound Accounts can make in your business. 

    To learn more about bookkeeping service providers, check out our frequently asked questions and answers below. 

    FAQ

    What specific services does a bookkeeper provide to a business?

    When you hire a bookkeeper, you can expect to receive various services, including payroll processing, tax preparation, and filing, maintaining accounts, bank reconciliation, and the preparation of financial statements. However, you should consult with your bookkeeper to get an idea about the additional types of services they provide.

    What are the benefits of hiring a bookkeeping service provider?

    There are many benefits of hiring a bookkeeping service provider, as mentioned below.

    Peace of mind

    • Tax filing on time
    • Accurate financial accounts
    • Payments to employees on time
    • Preparation of financial statements
    • Use the latest technology for managing accounts
    • Provides strategic information to help you make better business decisions

    Why shouldn’t I just handle all my bookkeeping needs myself?

    Some business owners attempt to do this. The rare few pull it off, at least for a short time, as long as they have a simple business model and only have a few employees. For most business owners, partnering with a bookkeeper allows them to focus on the core of their business. Bookkeeping service providers keep financial information organized, ensure accurate payroll and taxes, and serve as another partner in your continued success. 

    Attempting to juggle the responsibility of bookkeeping while trying to manage everything else in your business and life is usually too much to handle. It can lead to missed payments, lost data, human error, and even violations of compliance and regulations. Your bookkeeper will make sure you never have to worry about these kinds of errors. 

  • How to Fund Your Small Business Startup or Expansion: Several Options

    How to Fund Your Small Business Startup or Expansion: Several Options

    One of the most important decisions that businesses need to make is how to get funding to fulfill their business idea and business plan. After all, you need money to purchase new equipment, venture into a different market, and launch a new product. No matter which industry you might operate in, you will need financing at one point or another. This is why it is crucial that entrepreneurs know what their options are. To help point business owners in the right direction, we have prepared the ultimate post. Here is everything you need to know.

    1. Business Credit Cards

    When it comes to small business or startup funding, business credit cards are a great option. The reason why you might want to consider getting a credit card for your business is that it is relatively easy to get one. The bank does not care how long you have been in business, as long as you meet the minimum eligibility requirements and eligibility criteria. Therefore, you should be able to gain access to money if you have a decent credit score and are making a profit. Although you might consider credit cards to be a great option for making payments for purchases, they provide a type of financing called a line of credit.

    According to a survey conducted by the Federal Reserve Small Business Credit, it was found that around 53 percent of small businesses rely on credit cards for funding operations. This is why you should consider the option. Besides, a business credit card could be the perfect alternative to a business loan, especially if you only require minimal funding. Moreover, getting a credit card could help you establish business credit history and separate your business and personal finances. You may also need a personal guarantee to qualify.

    business owner looking to fund a small business startup or expansion

    2. SBA Loans

    Another way to fund your small business startup or expansion is by seeking an SBA (Small Business Administration) loan. Keep in mind that individual lenders who have been approved by the US Small Business Administration can only offer such loans. The reason why they are worth considering is that they come with lower interest rates. You would only need to pay a higher interest rate if you get a disaster loan. With ten different types of programs available, business owners have several choices for financial assistance. The (7a) program is widely popular as it can provide up to $5 million.

    With most of the SBA loans being taken up by startups, you should be able to get approved. However, the process is neither easy nor quick. If you don’t have time to spare, you could opt for the SBA Express loan program, which can provide up to $500,000. Make sure that you meet the requirements if you plan on applying. On top of this, you are going to need a business plan to cover monthly payments for most loan programs. The fact is that the US Small Business Administration prefers business owners who have some experience and are willing to agree to favorable terms.

    3. Crowdfunding

    If you want to fund your business, you need to consider all your options. A great way to finance your startup or expansion is by using crowdfunding platforms. They put entrepreneurs with a vision at the forefront and offer a quick route to raising money. Startups have three main types of crowdfunding options, which include investment (We Funder), debt (Kiva), and rewards (Indiegogo and Kickstarter).

    Business owners have to share their objectives and goals to attract a large group of people to invest in their venture. Keep in mind that marketing is necessary for a successful campaign. However, the final reward will be worth it once you get the necessary funding.

    4. SBA Microloans

    In addition to the above, you also have the option to seek an SBA microloan. Only approved intermediaries, such as CDFIs (Community Development Financial Institutions) can offer SBA microloans. However, you should know that only a maximum of $50,000 can be granted, while the average loan tends to be around $14,000. Since the microloans are term loans, you will have up to 72 months to pay them off. You should be able to use the funds for purchasing inventory or working capital.

    5. Additional Microloans

    There are other microloans available besides SBA microloans. Small businesses should consider the following options:

    Local Microlenders: One of the best ways to get funding is by opting for a local microlender. There are microlenders in just about every community throughout the US. However, these small non-profit organizations do not advertise their offerings to the public.

    Kiva: It is a trust-driven and community-based platform that entrepreneurs can rely on to crowdfund their business from philanthropists. You can borrow up to $15,000 at a time. A great thing about these loans is that they provide support to struggling businesses and have an APR of 0%. All you have to do is prove to the network of lenders that you have character and are committed to helping your community thrive economically.

    Accion: CDFI partners of Accion offer loans worth $5,000 to $100,000. You will appreciate the fact that credit requirements are on the flexible side. Besides this, you can even seek assistance with your application.

    business owner looking to fund his small business

    6. Bank Loans

    Even though you might be thinking about heading to a credit union or bank before considering any other option, you need to understand that startup businesses have a difficult time getting a bank loan. This is because banks have strict lending standards which small businesses sometimes cannot meet. In order for a bank to provide a loan to a startup, it would have to ensure that it is not overly risky. It would have to require you to provide a personal guarantee, a down payment, excellent credit, and a strong personal qualification or experience in the industry.

    7. Equipment Financing

    If you want to buy machines and equipment, you should be able to get an equipment loan. It is the same as any other conventional loan, since you would have to pay an amount every month for a specific period of time.

    The proceeds would be used for funding the purchase of the machinery or equipment. As the equipment would serve as collateral, the requirements are less strict which means that you should be able to get a loan without much effort. Apart from this, you could opt for equipment leasing. All types of assets that you use for your business can be leased, such as furniture, kitchen equipment, and computers.

    8. Line of Credit

    Unlike a business loan that provides a lump sum of cash up front, a business line of credit provides a specific amount of credit over a period of time. You just have to keep paying back what you owe if you want to keep using this funding option. It is possible to get a long-term line of credit.

    9. Short-Term Financing

    For those of you who simply do not qualify for traditional funding, it might be best to opt for a short-term loan. They have a short repayment period of anywhere from a few months to a few years. However, you will have to be prepared to pay higher interest rates.

    10. Personal Funding

    Have friends or family members who can chip in? You might want to consider seeking personal funding. It is one of the ways in which small business owners fund their operations. However, personal funds tend to be a huge gamble, especially if you plan on using up all your savings. In case you use personal funds, it is important that you move towards establishing business credit to avoid serious implications. It would also enable you to access more capital. You should be able to get the business up and running without having to compromise your personal assets or relations.

    If you cannot get a business credit card, you can always use your personal credit card as long as you have a high limit. It would allow you to make those initial purchases. However, you have to keep in mind that using a personal credit card for your business expenses can hurt your credit score. Using your savings can be even riskier. You might want to borrow from home equity. Otherwise, you have the option to withdraw money from your retirement plan.

    Conclusion

    Running a business is tough. As an entrepreneur, you need access to funding. As there are different options available, it is important that you weigh your options carefully. Discuss your choices with business partners, financial planners, and choose those that align with your plans. 

    Sound accounts helps business owners succeed with top-notch bookkeeping services and trusted advice. Connect with us today to learn more. 

    FAQ

    How do I fund my business expansion or startup?

    In order to fund your business expansion, you should consider taking out a bank loan from a traditional bank or credit union and using your business credit card, along with applying for federal grants and linking with other investment options like angel investors, equity investment partners, venture capitalists, and individual investors. You can also leverage your real estate and take advantage of other funding opportunities from personal investors and other private lenders. 

    What are the most common ways to fund a small business?

    The most common ways to fund a small business is through personal funding and business loans.

    What can I do if I don’t have good credit?

    You can borrow against your home equity, partner with friends or family, find private equity lenders willing to lend to you, seek grants, and more. 

  • Breakthrough Small Business Ideas: 2022 Edition

    Breakthrough Small Business Ideas: 2022 Edition

    When it comes to launching a new business, there are many ideas that you can try out. You have a range of options when it comes to building a lucrative business. This has resulted in many entrepreneurs succeeding. Many business owners are able to meet consumer demands simply by using the internet. With the right products or solutions, there is no limit to what you can achieve.

    However, with every business venture, there is the possibility of either success or failure. Successful entrepreneurs and breakthrough innovators understand that long-term success is more than just a good business idea. It takes discipline, smart money management, good leadership, creativity, adaptability, funding, clear goals and much more. 

    But today we want to start off by sparking your interest and imagination with a handful of breakthrough small business ideas. Once you’ve narrowed down your focus, you can begin to turn your attention to the finer details of building a business. Let’s dive in.

     

    entrepreneur working on breakthrough business ideas

    1. Create an Online T-Shirt Business

    One of the best small business ideas that have become incredibly popular in 2022 is an online T-shirt store. You can use a platform such as Shopify or Printful to get going. With just a bit of imagination, you will be able to launch your brand. Besides selling T-shirts, you can offer additional items like sweatshirts, shorts, prints, mugs, and posters. 

    2. Dropshipping Business

    Breakthrough technologies have made it possible for dropshipping businesses to flourish. It offers the easiest option for launching an ecommerce enterprise. The best thing about this route is that it doesn’t require you to buy any products or keep a costly supply of inventory on hand.

    There are even dropshipping apps that you can use to sell items. Avoiding the expense of spending money on manufacturing or warehousing, you will be able to focus on getting your marketing and branding just right. Innovators are selling all types of things including women’s clothing, jewelry, camping gear, collectables, educational materials, office supplies, toys and much more.

    3. SEO Business Expert

    Search engine optimization (SEO) has become incredibly popular in recent times. If you are tech-savvy and have an understanding of the latest technologies, you can provide advice and serve as a business expert. It’s about time that you put your skills to good use. Some of the ways through which you can earn as an SEO expert include content creation, link building, and website optimization.

     

    4. Offer Online Courses

    Have a passion for teaching? You can turn your hobby into a successful business by selling online courses. You will need to create a strong personal brand in order to convince people to sign up. Even if you don’t feel like making a course, you always have the option to teach online. There is a demand for just about every subject, from English and foreign languages, to tech subjects, art and more.

     

    5. Video Producer and Online Influencer

    For those of you with a strong creative side, becoming a video producer is a great option. As YouTube is one of the biggest websites in the world, you can start by uploading content and promoting it. It shouldn’t take long before you start earning money if you stick to content that folks are looking for.

    Make sure that you create interesting videos with timely subject matter, genuine conversation, humor, and honesty. You will need to start by learning how to record videos and edit them. With plenty of challenges along the way, there’s a lot to be excited about.

    6. Graphic Design

    If you’re more into graphics and visual content, you can start providing graphic design services. There’s always a demand for graphic designers. It takes some training and once you get going you will need to differentiate and set yourself apart from the pack to get noticed. 

    You can take in-person or online courses from universities, community colleges, and online educational sources like Udemy, Coursera, and Skillshare, or even contract with a personal teacher or mentor.

    7. Website Developer

    Consider becoming a website developer. It takes graphic design to the next level and combines it with SEO skills, marketing tools, professional writing, programming and more. Businesses constantly need to improve and upgrade their websites and landing pages, so you would have no trouble growing your company. Besides, you will get to work on all types of websites and business owners which will give you a wide range of contacts and experience. Although it can be rather challenging, you are bound to enjoy your work.

    new business owner using breakthrough small business ideas

    8. App Development

    Another possibly lucrative small business idea is to provide app development services. Since every company wants to have an app of its own, the demand for this kind of service is big plus. 

    If you’re a programmer, software developer or have skills in these areas, consider combining some creative ideas with your skills to make some useful and memorable apps. 

    9. Theme Designer

    A breakthrough small business idea that you need to consider is becoming a theme designer. Similar to a website developer, you would get to work on designing various themes or templates for websites. It can be fun to come up with new website themes for companies and individuals to use. 

    It will allow you to flex both your creativity and your technical muscle and establish you as a go-to creative in your field that companies can look to for solutions. 

     

    10. Translator

    Do you have a strong command of two or more languages? Then, you can provide translation services in various capacities. It is a great alternative to teaching. As a translator, you can work with corporations, government agencies, diplomats, the military, non-profits and others.

    Your job can involve translating websites, print materials and recorded assets and collateral to ensure that each business is able to enter a different market. You can also work as a translator in-person during meetings and negotiations. This small business idea requires a minimal investment once you’ve become proficient in additional languages. No matter the condition of the economy, there will always be a demand for translation services.

     

    11. Social Media Management

    Most businesses require a social media presence in order to thrive. Since it can be time-consuming, most companies prefer to outsource their social media management work. This is why you can expect to find plenty of work once you start providing services and proving you know what you’re doing.

    Make sure to keep up with the latest trends in order to succeed. You can offer different packages to clients based on the business type, market, and level of commitment.

     

    12. Remote Customer Service Agent

    Prefer helping others with problems they might have? Starting a call center will allow you to work as a remote customer service agent. The job would involve responding to queries and ensuring that you resolve every person’s issue. You will communicate with people via email, chat, phone, and other ways. 

    Customer service agents are tremendous assets to all companies and there remains a consistent need for experienced and capable representatives in this field.

     

    business owner thinking about breakthrough small business ideas

    13. Virtual Assistant

    Companies today sometimes need the help of a virtual assistant to operate. You can make good money by providing the services of a virtual assistant to a number of companies. The job would involve writing content, answering emails, scheduling, managing resources, hosting meetings, and other tasks. You might even need to host interviews, perform data entry, conduct research, and other activities. 

     

    14. Remote Sales Team

    If you have superior communication skills, you also have the option to employ a remote sales team and make money from each company you contract with. With most companies that adopt a lean approach, you can expect to find clients around every corner. As long as you maintain a high standard and strong sales figures, you will have clients. 

    You’ll need to excel in communication of all kinds, personal organization and self-discipline, strong leadership and training standards, and consistent follow-up with your team.

     

    15. Affiliate Marketing

    Take advantage of your online presence by leveraging affiliate marketing to increase your income. Affiliate marketing involves promoting a product or service that another company provides. It involves the use of blogging, social media, advertising, and other methods to convince customers to purchase things from a specific company. Every time your user purchases the product using one of your links, you will get to earn money.

    16. Lead Generation Service Provider

    Since increasing conversion rates is something that most businesses are interested in, you can become a lead generation service provider. What you will have to do is focus on lead generation activities. It would allow you to reach out to strangers and convince them to make a purchase from a specific company.

    You will use digital strategies, social media, customer service, along with more traditional strategies like mail marketing, events and more to capitalize on every potential customer. 

     

    17. Handmade Goods Shop

    If you already make handmade goods, you can sell them on a platform like Etsy or Amazon. It allows people who are interested in DIY to earn money doing what they love. Therefore, it is a viable business option to consider. 

    You can make and sell just about anything, fine woodworking products like furniture, crafts, clothing, toys, art and much more.

    18. Start Baking

    Since there is always a demand for food, you can start baking and generate revenue. You could offer all types of baked goods, such as bagels, macaroons, cakes, and croissants. A great thing about the online world is that you can even learn new recipes online and sell them to customers. 

    You can contract with coffee shops, restaurants, bars, and other businesses to carry your products, along with selling at local grocery stores and farmer’s markets and even online.

     

    19. Organic Beauty Shop

    As people become more conscious about how they look and about their well-being, the market for beauty products continues to grow. To enter this competitive market, you will need to create unique beauty products that connect with a wide audience. 

    You can use the internet, video marketing, in-person events, farmer’s markets, fashion shows, and much more, to promote your brand. 

     

    In Closing

    Creating a thriving business takes a lot of time, work, creativity, capital, and help. You can build your skills and assets over time. However, initially, you need a great idea for what kind of business you want to take on. Consider our suggestions and others you may have come across. Find collaborators who can help you realize your vision and when things get difficult, don’t give up, simply adapt, learn more, and innovate. 

    Sound Accounts helps business owners increase their productivity and find greater success with superb bookkeeping support. Connect with us today to learn more about how Sound Accounts can help you get the most from your assets. 

    To learn more about small business ventures, check out our frequently asked questions and answers below. 

     

    FAQ

    What is one of the most profitable business ideaz in 2022?

    Business consulting has become one of the most profitable business ideas in 2022. Combining a range of skills like management, leadership, mentorship, tech skills, financial planning, communications, analysis, negotiation and strategy, this career allows you to market to and help a wide variety of clients. 

     

    What Can I Sell In 2022?

    The choices are virtually limitless: T-shirts, cookies, website themes,  toys, vacation packages, wellness products, advice, training courses, cleaning products, beauty aids, antiques and much more.

     

    What Industry Will Boom In 2022?

    The IT industry will experience a significant jump in 2022. As more of us are doing business online, working remotely, and communicating digitally, the need for IT support continues to rise exponentially. 

  • Bookkeeping Strategies to Improve Business Performance

    Bookkeeping Strategies to Improve Business Performance

    Financial professionals are under significant pressure to work faster and deal with more complex data while ensuring they keep costs at a minimal. They don’t just spend all their time gathering and reconciling data, there is a lot more that accountants can do to improve the financial performance of a business.

    Accounting is a process that records transactions and maintains a chart of accounts. However, it can help with strategy and management. Business owners of both small and large enterprises need to focus on improving their accounting processes to ensure their current ratios and cash flow are favorable.

    It is vital that business owners utilize quality accounting standards to ensure they’re making the most of their resources. Every successful business owner knows that accounting professionals play a huge role when it comes to improving business performance. So, if you’re looking for bookkeeping strategies that managing accountants and auditors suggest, you have come to the right place. Here’s everything you need to know.

    1. Centralize and Streamline General Accounting Processes

    One of the bookkeeping strategies that you and your employees need to consider implementing is centralizing and streamlining the general accounting processes. The fact is that the way an organization is structured to deliver accounting processes and accounting functions, is integral to successful financial management. It is the only way that a business can support all of its needs and those of its clients. By combining repetitive or common processes into a single location and across all departments, you will create a shared services center.

    Since less than 20% of businesses leverage shared services, it will allow you to gain a competitive edge over other players. Besides, you will get to enjoy several benefits, such as fewer errors and a much faster cycle time. In fact, opting for a shared services center will allow you to meet all your goals and enable your business to get more things done. Moreover, you’ll complete more work in less time. Hence, you don’t want to overlook this bookkeeping strategy.

    business owner using bookkeeping strategies for better business performance

    2. Encourage Strong Data Governance

    Another excellent bookkeeping strategy worth looking at is the implementation of strong data governance policies. It is incredibly important to ensure clean and consistent data when it comes to general accounting. It is the only way that you can generate the right financial statements and financial reports, and get an accurate representation of the organization itself. It includes financial data and a chart of accounts.

    By ensuring proper data governance, there is no limit to what you can achieve. Implementing a standard policy will ensure that you are able to get more done. Organizations that implement finance data definitions have an easier time reporting and meet all their KPIs compared to organizations that fail to do so. Moreover, you will get to perform much better as the possibility of making errors would be significantly reduced. You will also encourage better customer satisfaction and trust, strong compliance, and overall financial health.

    3. Standardize Accounting Processes and Assign Process Ownership

    If you want to improve the accuracy of your accounting records, including accounts receivables and the cash register, you have to standardize accounting processes and assign process ownership to specific employees or to certain members of your accounting team. Process standardization is critical to performance. It is actually considered a prerequisite for successful automation. Furthermore, end-to-end process management relies on shared services implementation.

    When you standardize the accounting processes, you will be able to achieve common finance processes which are integral for adherence to process ownership. This has an overall positive affect on performance management, a better grasp of sales revenue, and streamlines the managerial accounting process. This means that you will have an easier time managing finances and identifying areas where you need to improve.

    Leveraging process owners and process standardization pays off in the long run. You’ll improve communication between team members, make the most of varied capabilities, and smooth out any rough or incongruent aspects within your accounting process.

    4. Striving Towards a Continuous Close

    A notable bookkeeping strategy that you should consider is performing a continuous close and striving towards pre-close activities. Since the month-end close can be a frenzy of activity, you would have no option but to ask the accounting team to work overtime for which you would have to spend a great deal more money which may carry a negative impact on your financial condition. This is why you need to focus on ensuring a continuous close. It will allow the department to collect and analyze information on time. Besides, it can be quite stressful for your and your employees to take on the work at the last minute.

    If you look closely at a leading organization, you will come to understand that working toward a continuous close is likely to even out all the work so that everything is completed by the month-end without delay. It is the only way that you can prevent your accountants or bookkeepers from working overtime. You should consider using cloud technology and automation to implement continuous accounting. It would allow financial data to be accessed in real-time.

    Even when you perform some pre-close activities, it will become a lot easier to get everything done on time. This would prevent the likelihood of mistakes. You can rely on these activities to lower the cost of general accounting processes as well. Therefore, you don’t have any excuse to avoid this bookkeeping strategy.

    5. Automate and Integrate Accounting Systems

    In addition to the above, you should consider automating and integrating your accounting systems and processes. Even though automation is necessary for improving the performance of your finances, you first need to focus on understanding and streamlining the processes as it would allow you to maximize your return on automation efforts.

    A commercial ERP software should help streamline general accounting and provide the results that you are looking for. It will operate as a primary system for general accounting. However, the emergence of cloud-based tools has changed the game. It has become a lot more affordable for organizations to improve their financial activities because of the availability of these products. As long as you take advantage of such tools, you will improve general accounting and reporting, which would have a positive snowball effect on business performance.

    As you might already know, manual data entry is likely to cause errors no matter how experienced or careful your accounting team might be. For quality data, you need to switch to an integrated system. It will facilitate effectiveness and efficiency so that you don’t encounter problems later down the road. When you consider top organizations, you will come to realize that their internal or external system is linked and automated. Only through automation can you expect better KPI results.

    For instance, you will benefit from correct journal entries when you opt for an automated solution. You should keep in mind that consolidated financial statements require the use of software to avoid the possibility of any mistakes. Otherwise, you could make costly errors that jeopardize your business. Don’t hesitate to put automation to work for you, your bookkeepers, and your management accountants.

    business owner using bookkeeping strategies to improve business performance

    6. Leverage Emerging Technologies

    Lastly, you need to keep an eye on the latest technologies to ensure that you implement them early on. The emerging tools are there for a reason. You can use them to improve general accounting. Some examples include blockchain, cognitive computing, and robotic process automation (RPA). For those of you that don’t know, RPA is actually server-based, and it combines different processes with business rules or decision models without requiring much human oversight.

    As more and more businesses realize that RPA has a lot to offer, it is in your best interest to jump on board. The last thing you want is to miss out on some amazing opportunities that may even improve your profitability ratio. You will be truly impressed by what the latest technologies can do for you. They can help your business unleash its full potential. The most successful bookkeepers, business owners and management accountants are those that leverage the latest offerings.

    Conclusion

    It is important that you adopt different strategies to ensure that your business succeeds. Consistently high business performance requires a high level of bookkeeping strategy and financial management. At the end of the day, it all comes down to having an open mind, getting the help you need, staying organized, using the tools at hand, and keeping up with the latest trends.

    Sound Accounts helps business owners like you succeed with superior bookkeeping strategies that improve business performance and solidify long-term success. To learn more about the many ways we can strengthen your business, connect with us today. 

    For more information about implementing better bookkeeping strategies, check out our frequently asked questions below.

     

    FAQ

    How can accounting and better bookkeeping strategies Improve performance?

    Accounting is considered the language of business. It allows you to create and refine your workflow, as well as minimizing mistakes. By ensuring that proper accounting practices are followed, you can expect your organization to succeed.

    How Does Bookkeeping Improve Your Business Operations?

    Bookkeeping improves business operations by ensuring that you gain access to accurate records which you can use for making decisions.

    Great bookkeeping adds tremendous benefits, including improved services, a better handle on cash-flow statements, a streamlined accounting process, better performance management, and a closer watch on resources and items. It readies you for E-Commerce Capability and prepares you for better operational strategies, diversification strategies, and overall corporate strategies. 

    It also helps you make the most of your financial reports, financial statements, and other departmental reports, smooths over processes for employees so you can make the most of their capabilities instead of watching them spin their wheels on other things. It empowers your accounting research, improves professional services for your clients, improves client trust and loyalty along with customer experience, helps you navigate changing financial conditions, and with the right people in place, allows you to overcome the challenges of accounting.

    How important is learning when it comes to finances, bookkeeping, and accounting?

    It is important to stay current when it comes to ongoing education within principals and practices of accounting and economics. For a business owner, your grasp of financial and investment concepts will greatly affect your outcome and your position in the market. You can take online classes, join professional groups, get mentored by a professor of accounting, read the journal of accounting studies and the journal of accounting research, and shadow excellent bookkeepers both within your organization and others finding consistent success. 

    What are 4 of the most important activities In bookkeeping?

    Bookkeeping involves many practices, some simple, many that are more complex. These are simply 4 of the most common practices:

    • Analyzing financial transactions and ensuring that they are assigned the right account.
    • Writing journal entries that are debited and credited to the appropriate accounts.
    • Posting entries to relevant ledger accounts.
    • Adjusting entries once the accounting period ends.
  • How to Organize Business Expenses like A Bookkeeper

    How to Organize Business Expenses like A Bookkeeper

    As a business owner, when it comes to organizing business expenses, there is a lot that you can learn from a bookkeeper. After all, a bookkeeper knows how to manage payments and prepare financial statements. The fact is that running a small business is no easy task. There is a lot that goes into it.

    You have to know how to track and organize all your business expenses to ensure that you’re able to make the necessary payments on time, run your business from day to day without missing a beat, and plan ahead more strategically. Thankfully, there’s no need to stress since we’ll show you how to organize your business expenses like a bookkeeper.

    bookkeeper working on business expenses

    Common Business Expenses

    Before we take a look at our tips that will help you manage your business expenses, it is important that you have an idea about the most common expenses. These include:

    • Cost of equipment.
    • Employee salaries and bonuses.
    • Travel and entertainment expenses.
    • Employee training and development.
    • Fees for cell phone, business phone, and internet.
    • Protective gear for workers to perform their tasks.
    • Fees for managing a bank account and paying credit card payments.
    • Fees for professional services such as legal and accounting services.
    • Business insurance policies include property, liability, malpractice, and auto.
    • Advertising and marketing expenses like website development, brochures, and business cards.
    • The payment for vehicles, office supplies, pictures, warehouse, equipment, and office space rent.
    • Top Tips to Organize Small Business Expenses

    Taking these into account, we’ll look now at ways to better organize your expenses.

    1. Open a Separate Business Bank Account

    One of the most important tips that you need to consider is opening a separate bank account for your company. The reason behind this is that you need to manage business transactions without having to deal with confusion, crossover from your personal accounts or other issues. Make sure that you don’t use this account for personal expenses. This makes tax time confusing, causes you to miss valuable deductions, can draw the auditor’s attention, and keeps you from using your resources in a focused manner. 

    It’s easy to open a business bank account. You will need to provide your personal details such as full name, birth date, address, ownership percentage in the business, social security number, and photo ID. As for the business details, you’ll need to let the bank know your entity type, employer identification number, business name, and business address, and have your business license and other documents ready for verification.

    Choose a bank with a long history of helping business owners manage their finances, credit unions and banks that understand the needs of entrepreneurs and their families, along with providing a range of quality services for someone with your goals. 

    .

    2. Group Your Business Costs

    When you start a new business, you will need to organize your costs and ensure they are under control. In order to do so, group expenses by type. You will have to organize the costs into two categories, one-time and recurring expenses. One-time expenses are those expenses that you have to pay for when you start a new organization, such as licenses, equipment, and permits. As for recurring expenses, they are expenses that you have to pay on a monthly or annual basis like employee salaries, interest, utilities, and rent.

    3. Use a Spreadsheet

    The next tip to consider is to use a spreadsheet to organize your business expenses. Although it is a low-tech approach, it is extremely effective at helping you to maintain company records across a range of areas and departments. It will allow you to manage cash flow, prepare for tax season/tax time, and account for all deductions.  

    To get started with a spreadsheet, you will have to track all your business expenses and go through your bank statements. Keep in mind that entries need to be made daily. Categorize every expense daily so that you don’t encounter issues later on. Google Sheets or Excel should help you get started.

    4. Digitize the Hard Copies

    Since dealing with paper can be time-consuming, it is best that you digitize your hard copies of all paper invoices, bank records, employee records, permits, trademark applications, contracts, receipts and invoices, tax papers and more.

    When you digitize these documents, you will be able to access them whenever you need. This will allow you to free up office space. There are apps and software programs that will help you visually record and organize your records. Also, don’t forget to back up all your digitized data both on hardware and in the cloud. 

    5. Save and Organize Receipts

    Organize receipts in ways that make the most sense for your business to ensure that you don’t encounter issues later on. Here are some ways that you can do this.

    Use Google Drive

    This cloud-based platform makes it possible for you to store just about every type of record. Besides, it supports Google Presentation, Google Sheets, Google Docs, and other tools.

    Use Folders

    Next, you should also make folders to suit your requirements. It is even possible to make use of sub-folders. You’ll be able to include all pertinent details to ensure that you can access every bit of needed info whenever the need arises.

    Use Evernote

    You can take notes of just about everything with Evernote, business ideas, conversation notes, thoughts on different business or personal matters, reminders to take care of something. It lets you access information with just a few taps on the screen to help you recall key information, so you can solve problems and create opportunities. 

    Use Welly Box

    This web-based app allows you to collect essential information quickly and enables you to create an expense report, which is always an important part of business management.

    6. Use Accounting Software

    As your business progresses, you will need to use accounting software to record transactions and other financial activities. The more your business grows, the more imperative it is for you to do so.

    With accounting software, you will have no trouble recording and categorizing financial transactions. You’ll be able to manage payroll, send invoices to customers, pay bills, study trends and generate forecasts, and much more. Here’s how accounting software can prove useful.

    • It syncs all your financial data.
    • It provides you with professional financial statements.
    • It generates daily, monthly, and yearly reports automatically.
    • It saves hours of work by ensuring that there is virtually no need for manual bookkeeping.

     

    business owner working on business expenses

    7. Import Transactions by Connecting Your Bank Account with Your Accounting Software

    To benefit from maximum convenience, you need to connect your business bank account with your accounting software. This will allow you to import transactions with just a click of a button. Generally, small businesses should be able to utilize integration support systems for managing multiple transactions.

    As there are plenty of solutions available, you need to pick one that suits your individual requirements. You must think things through and make a list of features you need. Finally, make sure it provides time-honored features along with occasional upgrades to its technology. Your software provider should stay relevant, engaged, and innovative.

    8. Stick to Either Accrual or Cash Accounting

    If you want to make sense of all your accounting records, you must select one accounting method and stick to it. It will allow you to better manage your business finances. Once you have selected the method, you will have to follow a set of rules that govern this method. Accrual accounting is required for businesses that generate annual revenue that is at least $25 million within the last three tax years.

    Under GAAP (Generally Accepted Accounting Principles), accrual accounting is recognized and allows for financial reporting to be done correctly. On the other hand, cash basis accounting tends to be a lot more straightforward and is easier for some small businesses to follow. It only requires you to record transactions when you receive the payment. Similarly, expenses would only be recorded when they are paid.

    9. Hire a Bookkeeper

    Since organizing business expenses is no easy task, you might want to hire a bookkeeper to help you out. At the end of the day, your focus should be on running your business instead of stressing over accounting errors and bookkeeping details. 

    The fact is that your bookkeeper or bookkeeping service provider will know how to handle everything, from keeping accurate records and overseeing all bookkeeping needs. This includes maintaining digital records, spotting tax deductions, watching and recording travel expenses and business meals, knowing deductible expenses and business income, running financial reports to give you a clear financial picture, spotting financial issues, keeping you in budget and accountable for operating expenses, helping you avoid things like overdraft fees, mastering your bookkeeping software, organizing customer invoices, and fully understanding how your unique business financials affect your business plans.

    In fact, you’ll be able to seek advice on how to improve the financial situation of your business. Furthermore, your bookkeeping service provider will give you regular reports and feedback to ensure that you are able to keep up with the latest trends and address issues early on. Even though it isn’t compulsory to hire a bookkeeper, you should definitely consider partnering with a bookkeeping firm.

    10. Secure Your Business

    Lastly, you need to secure your business. You might have to set up an S-Corp or LLC and get business insurance to stay afloat. The reason why you should consider an S-Corp or LLC is that it will allow you to separate your business identity from your personal finances.

    Besides, it will ensure that you shield your personal assets from encroachment if you encounter any legal issues. Also, don’t forget to renew essential licenses on time to stay compliant.

    Conclusion

    Bookkeeping is immensely important for your business. Without excellent bookkeeping, your finances, and consequently, your business goals, go out the window. Business owners who manage money well succeed more often than those who don’t. It’s that simple. Don’t leave things to chance. Don’t let yourself get disorganized and fall victim to errors and losses. Organize your finances like a bookkeeper today and discuss your options with a professional. 

    Sound Accounts helps business owners increase productivity and reach their goals with top-notch bookkeeping oversight tailored just for you. Contact us today to learn more about how we can help you succeed. 

    To learn more about organizing your business expenses like a bookkeeper, see our frequently asked questions below. 

     

    FAQ

     

    Is a bookkeeping service worth the money?

    The short answer is yes! Bookkeepers are experts in a field that most business owners only carry a scant knowledge of. They can organize your entire bookkeeping system, develop better habits, help you make better use of your resources, save on taxes, and reach your goals. Plus, you’ll sleep better not having to worry about it all yourself. 

    What Is The Easiest Way To Track Business Expenses?

    The easiest way to track business expenses is by using accounting software. The best software programs will automate certain functions and allow you to record others, then quickly produce charts and reports which provide you with a clear financial picture and the ability to make projections. 

    Can I simply keep the books the old-fashioned way, with ledgers and files instead of with software?

    Yes, you can, and some people are still really good at doing so. Yet, for most people, software is a much better choice. It will help you avoid mistakes, keep digital files for everything, files that are instantly accessible and easy to back up, and provide you with a vast range of helpful features you probably never even knew you needed. 

  • How to Manage Small Business Finances

    How to Manage Small Business Finances

    One of the hardest tasks that business owners need to ensure is managing business finances. The fact is that you need to know how to manage the financial health of your company. Otherwise, you’ll definitely struggle to generate a profit, manage your resources, plan strategically and pursue your goals with a greater sense of clarity. Even if you have several other aspects of business management in order, neglecting your finances can topple your entire program.  

    It’s alright if you don’t have much experience managing personal finances, there are certain things that you can do to avoid slipping into bad financial habits. Here’s what you need to consider. 

    plant growing from coins symbolizing healthy business finances

    1. Properly Manage the Accounting

    Although you can invest in accounting software, it is best that you hire a bookkeeper or outsource the work to ensure that you can keep track of all costs and income. The fact is that managing business debt and expenses requires you to be on top of everything. Otherwise, you will struggle to pay off loans on equipment and other items, and slip into poor money management. 

    2. Review the Costs

    The next tip that you should consider is reviewing your costs. It is in your best interest to keep track of all expenses. You need detailed information to make more focused financial decisions. As costs can quickly add up, you have to stay on top of everything to not overspend or get into debt. 

    Managing costs allows you to obtain the supplies you need to keep your business running, invest in growth, and increase customer service standards, while ensuring you don’t go over budget.

    3. Make Financial Projections

    To avoid making serious mistakes in your business finances, and to give yourself the foundation you need to conduct long-term planning, consider making financial projections using all data within reach. The three most vital reports to use are a balance sheet, income statement, and cash-flow statement. These three reports provide the core information necessary for projections.

    Additionally, you can use several other forms provided by your accounting software and bookkeeper, like the profit and loss report, aged receivables summary, analyze sales report, and several others to refine your process. By anticipating your future business needs, you will be able to create a budget and address obstacles early on. 

    Moreover, you can use accounting software to monitor card payments and cash flow. In fact, you should be able to generate a report for a specific time period with just a click of a button. There are plenty of options for setting the period of time you want to focus on.

    4. Get the Invoicing Right

    Invoicing is one of the most important tasks that you need to get right to better manage your business finances. You must send out invoices as soon as you provide goods or services. There’s no reason for you to wait around. Also, you need to set the payment terms to ensure that payments are made promptly. You don’t want to be in a position to hound your customers to pay you back. 

    You want to establish a payment system that guarantees instant payments, or payments with a short lag time. You can even set automatic reminders that will reach out to your clients and customers to avoid late payments.  

    Make sure to clear the account balance as soon as a customer pays to avoid contacting someone who doesn’t owe you anything.

    5. Have a Separate Business Bank Account

    To avoid many troubles, you should have a separate business bank account. It will be used for income, capital, equities, and expenses. The worst mistake that you can make is mixing business money with personal finances. It is likely to cause tax problems, confusion when accounting for deductibles, mislocation of funds, and unexplained losses. Besides, you would be better able to track your working capital and cash flow when you have a separate business bank account.

    6. Manage Your Loans

    If you want your business to remain solvent and make the most of your resources, you will also need to keep a close eye on all your personal and business loans. Falling behind on payments, not taking advantage of lower rates when possible, refinancing too often, or taking out too many loans, these can all get you in trouble. Business debt can be a big help when you use it wisely and carefully. Unfortunately, it becomes a weight around your neck and a weapon against your credit when you don’t. 

    7. Use a Business Credit Card

    When it comes to paying off business-related expenses, you need to use a business credit card. However, it should not be used for personal purchases. You don’t want to get confused as to where certain expenditures need to go. You also need to account for these purchases when filing taxes. Plus, there are many perks to using a business credit card that can accrue over time. Always remember that you can save a ton of money when you choose the right card.

    8. Pay Yourself First

    Running a small business is a full-time job. This is one reason why you should pay yourself first. It doesn’t mean that you’ll gobble up all your profits. But you want to have a regular salary in place so that your needs and the wellbeing of your family are met. 

    Depending on the level of your current revenue and gross profit, you should set a salary that represents the hard work and innovation you put into your company. It should also provide enough that you aren’t worried about personal and family finances each day. This stress not only makes life more difficult, it makes it harder to focus on your work and the development of your people and your organization. 

    9. Be Frugal

    Since running a small business costs a ton of money, you have to remain frugal. There’s no other way to succeed, at least toward the beginning. Although you might pay yourself, it doesn’t mean that you should use up all the money. You need to save up and ensure that you invest it to diversify your income for long-term security and future opportunities. The money you save now will provide you with greater flexibility later on. It would allow you to weather many storms.

    10. Reduce Travel Costs

    In addition to the above, you also need to keep an eye on travel expenses. You can’t let them add up. If you notice travel costs going up, you will need to identify the source of the problem and find alternatives to reduce these expenses. If you’ve been flying to a location for business, you might be able to take a train or drive there instead if it’s close enough and economically wise to do so. Similarly, you don’t need to stay in a 5-star hotel or eat out at the finest restaurants every day. It’s the small things that make a huge difference.

    11. Keep Legal Fees Under Control

    Since legal services cost a ton of money, you need to better manage them to ensure that these fees don’t get out of hand. In order to better manage legal costs, make your expectations clear and opt for a more cost-effective billing option. 

    You should be able to discuss billing options to find out what works best. Moreover, you should also find out whether it is possible to defer payments until a more opportune time. Legal counsel is important for business owners. You don’t want to neglect it. However, you want to remain aware and engaged with it to ensure you are getting the best value. 

    business owners working together on business finances

    12. Be Strategic with Your Marketing Choices

    Marketing is such an important part of your business growth plan. It is imperative for building a dedicated customer base and your brand’s identity within the market. Sometimes, if you have the experience, you can handle your own marketing for a while. Be careful, though, as this can eat up a lot of your time, which can cause you to burn out and neglect it. 

    Other times, contracting with a professional marketing firm is the right choice, as they can put their experience, resources, and creativity to work for you to achieve significant results. It may cost a bit more, but you might make a lot more in return. Investing in a strong marketing plan is one of the best business decisions you can make. Look at all your options and invest in the marketing choices that push your business forward in tangible ways while not breaking the bank.

    13. Rent Instead of Purchase

    Since it costs a ton of money to buy property or large equipment, it might be better for you to rent or lease.. You should lease equipment to avoid having to pay maintenance costs. Besides, it will also ensure that you don’t overpay for anything and that you only pay when you need to use the equipment.

    14. Know When to Get a Loan

    There’s no reason for you to wait a long time until you take out a loan. Knowing when to take out a loan allows you to benefit from better terms. In fact, yo’ll be in a better position to negotiate and get the loan amount that you need to keep your business afloat. You should take a loan out when your business finances are in order. It is always best to get financing long before a possible emergency, and use it to strengthen your infrastructure and expand your efforts so you can navigate more difficult times more easily. 

    15. Sufficient Capital

    As a small business owner, you also have to keep an eye on your capital. It should be enough to keep the business running daily and to cover unforeseen expenses.. Generally, you should have capital that covers three to six months’ worth of expenses. 

    16. Never Spend Prematurely

    Lastly, you should think about each expense. Never pay for anything without justifying its cost. Know why you’re thinking about purchasing something. You need to be able to connect it directly to a clear objective or outcome. If you can’t, you should rethink your desires. 

    Conclusion 

    Managing your finances is one of the best things you’ll ever do for your business, No matter how many other areas you have in order, without a clear understanding and confident hand on your budget, expenses, spending habits, investments, and cash flow, problems will eventually arise. 

    Great money managers make better business managers. Finally, don’t hesitate to reach out to a great bookkeeper or bookkeeping service provider to help get your business finances in order. 

    Sound Accounts helps business owners achieve more with superb bookkeeping services and great advice. Contact us today to learn more. 

    To learn more about managing your business finances, check out our frequently asked questions below. 

    FAQ

    How can I learn how to manage my business finances?

    There are several resources to tap into. Start by teaming up with a great bookkeeper or accountant. Check out several excellent books on money management for business owners. Take some online classes from places like Coursera and Udemy, and partner with a mentor with considerable experience in this area. 

     

    How can I decrease errors and make the most of my business finances?

    Create a clear budget and stick to it.

    Keep meticulous records.

    Go over your most important financial statements and financial reports each day and keep physical copies of your financial documents on hand in addition to your computer files.

    Reconcile all invoices and receipts daily.

    Stay on top of your business expenses.

    Follow your business plan and your financial plan closely.

    Separate your business accounts and personal accounts.

    Control business travel expenses.

    Create a business savings account as an emergency fund to stay ahead of surprises and unexpected expenses.

    Keep detailed business records for everything.

    Consider strategic financial partners and angel investors.

    Make monthly payments on time.

    Consider leasing equipment instead of purchasing.

    Keep track of cash flow, profit margin, and business revenue so you can reach your financial goals.

    Protect yourself with business insurance.

    Know your tax burden and be detailed and on time with tax payments.

    Educate yourself on financial management principles.

    Talk with your bookkeeper about other ways you can stay ahead and avoid mistakes.

     

    How Long Does It Take For A Small Business To Be Profitable?

    It varies widely from business to business. It’s common, though, for many businesses to turn a profit after the second or third year. Your experience will be unique to you, though. 

  • A Simple Guide to Writing Your Best Business Plan

    A Simple Guide to Writing Your Best Business Plan

    A business plan is an absolute must when it comes to bringing your business idea to life. No matter what your business idea might be, you have to create a business plan to ensure that you know exactly what to do at every step of your growth and process. It serves as a road map and allows your organization to reach its full potential. Whether you’re a small business or a large enterprise, a business plan lays out the steps you need to take to consistently put your strategy to work and reach your goals sequentially.

    A business plan also helps you identify and overcome obstacles. You need to understand that each part of a traditional business plan will enable you to meet your goals, including sales, marketing, operations, employment, and financial aspects. 

    If you are on the lookout for business plan templates, you have come to the right place. To help provide you with a simple business template that will work for nearly all business owners, we have prepared this informative post. Don’t forget to pair your business plan with a solid mission statement. A mission statement will help you energize your business plan using your core values, so you’ll be able to take practical, concrete steps to achieve your mission, while remaining passionate and energized throughout. Let’s dive in. 

    What Is A Business Plan?

    A business plan is an execution plan that outlines everything you expect your business to achieve. It is presented to stakeholders, such as potential investors and new employees, to convince them to get on board. If you want your business venture to succeed, you cannot overlook the importance of a business plan. It ensures that your company remains on track and grows with the market while continually innovating.

    Why You Need A Business Plan?

    Launching a new business venture is no easy task. It comes with its fair share of headaches. Therefore, it is in your best interests to be prepared. With a business plan, you’ll have a guide to use while you conduct market analysis, map out your marketing strategy, make financial projections, carve out the specifics of your business model and business structure, figure out your legal structure, write down your business objectives, consider any intellectual properties, discuss possible business partners and key employees, survey your potential market, map out cash-flow projections, understand your competitive advantage, design a production process, establish a well-managed financial model, understand market demand and market share, and create a complete business strategy. 

    When you write a solid business plan, it will help prepare you for the challenges that you are likely to face every day. Besides, it will allow you to understand what needs to be done to achieve your goals. Once you have created your plan, you can review it to ensure you’re on the right track. Let’s look at a few of the primary functions of your plan. 

    manager working on business plan

    Establish Your Main Business Focus

    A major reason why you need a business plan is that it allows you to establish a plan for the future, refine your objectives and push out anything that’s distracting. It will include milestones or goals as well as the steps that your company has to take to reach them. 

    Secure Funding

    Another reason to create a business plan is that it will allow you to secure the funding you need to get your startup on its feet. There’s no better option for getting seed money. Since investors want to know everything about your venture, you must prepare a detailed business plan. It should cover everything, including revenue and expense projections, and related market data and analysis. It is best that you create a projected income statement and cash flow statement to ensure that investors have an idea about the costs involved. 

    Attract Executives

    To keep your organization growing, you have to partner with the right executives. This is only possible when you create a business plan. It will allow you to attract the best talent and encourage them to stick around. With the right people by your side, there is nothing that you can’t achieve. 

    Now, you should keep in mind that when presenting your business plan to potential executives, it can be either a written document or a visual media presentation. Ultimately, you want to create both versions. The written version will provide more detail, while the visual presentation will help others visualize everything in a more dynamic way. These presentations will help others make clear decisions about linking up with you and your vision. 

    Types of Business Plans

    When it comes to business plans, there are two options available. You can either create a simple or traditional plan. Generally, the decision for a traditional business plan means you’ll have a much longer and more detailed plan, covering a multitude of factors. It can have both short-term and long-term goals, whereas the simple business plan will cover a few key metrics in detail and some additional data, but not to the same degree or breadth as a traditional business plan. 

    Simple Business Plan

    The simple business plan was developed back in 2010 and has become incredibly popular in recent years. It is a canvas that comprises nine sections. Each part contains high-value information, including metrics for attracting investors. The lean business plan comprises a single page of information. Here’s what it includes:

    • A basic or “bare-bones” management strategy.
    • A basic description of tactics that will enable you to accomplish this strategy, including things like financing, marketing, product development and more.
    • A measurable plan for regular reviews or milestones, which includes specific tasks, deadlines, budgetary plans, and customer goals.
    • Forecasts for spending, cash flow and sales. 

    Traditional Business Plan

    Unlike a simple business plan, which is a single-page plan, a traditional business plan is comprised of lengthy documents, which can be dozens of pages in total. The thing about a traditional business plan is that it serves as a blueprint for the organization and details everything, from the launch to becoming an established business. Here’s what it would cover.

    1. Executive Summary

    The most important part of the business plan is the executive summary. It draws readers into your business plan and entices them to read on. However, if you fail to capture the attention of readers through your executive summary, they may not continue to stay engaged with it. 

    Although your executive summary is the first thing that would appear when people open the traditional business plan, it should be written last. When you make your attempt, you should focus on summarizing the problem faced by your market or potential customer and how your product or service can solve it. You will also have to mention key financial details and why people should invest in your business idea. The secret to getting it right is keeping it engaging. 

    2. Company Description

    The next thing a traditional business plan covers is the company description. This will provide an overview of your organization and include details like the founding of your business, the type of entity that you are running (LLC, Corporation, other…)and a summary of its history. This part of the business plan will provide a solid understanding of your business. 

    3. Products or Services

    As you move further, you’ll have to describe your offering. You need to focus on your customers’ perspective. By demonstrating the problem your product or service aims to overcome, you’ll be able to prove that you are targeting a bona fide market that will remain viable. 

    4. Market Analysis

    For this section, you’ll have to define your target market. Your marketing plan should cover who your customers are, where your customers can be found, and how you plan to reach them. A deep analysis must be provided about your ideal customer and how you can market your offering to them.

    You will also have to include detailed information on potential competitors and illustrate what makes your business unique when compared to theirs. Competitor data will help you leverage vital information to approach your market more confidently and effectively.

    5. Management Team

    To prove to potential investors that you have a management team that will deal with strategy and single process, you have to write a separate section. It will show how your business would be managed on a daily basis and how these management decisions contribute to your objectives.

    You must list the founders, advisors, partners, members, and employees that are critical for your business. It is crucial that you provide a summary of each individual, what they bring to the table in terms of knowledge, experience, skills, and goals, and how each person will contribute to your organization.

    successful corporation resulting from a good business plan

    6. Financial Plan

    Next, you have to cover the financial plan, which will cover all your finances. The least that you can do is include a profit and loss and cash flow projection for the next 3 years. Make sure you incorporate historical financial data to get it right.

    7. Operational Plan

    As for your operational plan, it will detail the physical needs of your organization. You’ll need to detail every operational aspect of your business’s operational plan, including the location of your venture, equipment needed, additional facilities required, transit and shipping processes, inventory and supply requirements, production plans, and every other primary operations activity. 

    In Closing

    Creating a professional, detailed business plan is necessary for growth and success. Business owners who move forward without a business plan or vision statement, set themselves up for failure. Don’t become another negative statistic. Plan ahead, write everything down, get specific, know your market, attract the right people, and move forward with confidence. For more information and some downloadable business plan templates, check out these links: 

    https://www.hubspot.com/business-templates/business-plans

    https://www.inc.com/larry-kim/top-10-business-plan-templates-you-can-download-free.html

    https://templates.office.com/en-us/business-plans

    Sound Accounts helps small business owners increase productivity and grow their busines with top-notch bookkeeping support and years of financial knowledge. Contact us today to learn more about partnering with us. 

    To learn more about business plans, check out our frequently asked questions below. 

    FAQ

    Do I really need a business plan?

    Definitely; yes! There’s no way to ensure you’ll have consistent work, high standards, accurate bookkeeping, solid marketing plan and marketing efforts, a practical operations plan, great talent, time management, innovation and goal achievement without a clear business plan.

    Do I need a business plan even if I’m working alone?

    Again, the answer is definitely yes! Even if you’re the only one doing the work, you won’t achieve consistent results or long-term growth without a detailed business plan that includes every primary aspect of your vision, operations, goals, finances, marketing and projections.

    What are some great resources for understanding business plans and ongoing business success?

    A great place to begin is with this article. Aside from this, find a mentor or two who’ve been in business for a while, operate transparently and according to a clear plan, and have achieved considerable success in their field. Be willing to pay for their time if they don’t volunteer it for free. The investment will be well worth it. 

    Read books by respected executives and entrepreneurs. Read prominent business blogs. Check out magazines like INC., Fortune, Entrepreneur, Harvard Business Review, and WIRED. 

    Surround yourself with a community of like-minded business owners and managers who want the same things you do. You can support one another with advice and counsel, toss around ideas, partner up on projects, and encourage each other during difficult times. 

    Who Can I Share My Business Plan With?

    The business plan you create can be shared with potential investors, business partners, other managers, and employees. It is best that you are careful about who you share your business plan with as you do not want it to get into the wrong hands. . 

  • New WA State B&O TAX CREDIT AND FILING THRESHOLD

    New WA State B&O TAX CREDIT AND FILING THRESHOLD

    SMALL BUSINESS B&O TAX CREDIT AND FILING THRESHOLD

    Beginning with tax periods starting on or after January 1, 2023, this bill increases the small business B&O tax credit as follows: 

    • For taxpayers that report at least 50% of their taxable amount as subject to business and occupation tax under the Service and Other Activities classification including those subject to tax on contests of change and/or tax on real estate brokers the maximum credit for a reporting period is $160 multiplied by the number of months in the reporting period, as determined under RCW 82.32.045. 
    • For all others, the maximum credit for a reporting period is $55 multiplied by the number of months in the reporting period.

    The bill also increases the threshold for filing returns to $125,000 per year for all taxpayers that do not have other taxes to report to the department.

    Credit and threshold effective January 1, 2023 (ESSB 5980, Chapter 295 Laws of 2022).

    Special notice coming soon.

  • Common Business Mistakes: Why Some Businesses Fail and What to Do Instead

    Common Business Mistakes: Why Some Businesses Fail and What to Do Instead

    Making a mistake in life and business every now and then is valuable for our learning curve, and teaches us several important lessons. However, you don’t want these to happen too frequently, especially in business. 

    If you want your company to be successful year after year, you need to avoid certain missteps that plague many businesses. Running a business demands a great deal from us in the way of skills, organization, training, communication, ongoing education, creativity, and leadership. Within each of these areas, we have wins and losses. The goal is to rack up more wins and come out ahead every day. Let’s look now at some common business mistakes and what to do instead to ensure long-term success. 

    1. Not Writing A Clear Business Plan 

    One of the most common mistakes that business owners in Silicon Valley and in other industries make is not writing down their business plan. It is impossible for you to guide your organization in the right direction when you don’t have a business plan in place, and one that is broken down in clear, attainable steps. 

    When you write a business plan, you get to create a sustainable business and stand out in the market. It is important that you define your business idea in detail and create a strategy that focuses on attracting your customer base, maximizing resources, marketing effectively, and attracting great talent.   

    Once you write your business plan down, you will have a clear idea of what you plan to achieve. As a new entrepreneur, you’re likely to begin your venture without considering the big picture. This will prevent you from understanding your market and from getting your finances and logistics in order. Moving forward with a strong plan is the best foundation you can give your organization. 

    chess game representing business mistakes during failed strategy

    2. A Failure to Focus on Cash Flow

    Another mistake that business experts suggest new startups avoid, is overlooking cash flow. You have to pay attention to your cash flow to remain solvent, manage payroll accurately, and make the most of your profits.

    It doesn’t matter how much growth you’re seeing or how fast your company’s rate of expansion is, you must still have enough freed up cash to meet all your expenses. Understanding cash flow will also help you take advantage of loans, build excellent relationships with banks and other lenders, and find strategic partners.

    To determine how profitable your company is, you have to monitor your revenue and expenses. This will enable you to maintain your cash flow and make necessary changes early on to avoid other problems later. 

    3. Not Assessing Market Idea

    Failing to conduct market research is one of the biggest mistakes that you can make. Even if you plan on catering to niche markets, you still have to find out if your business idea is viable. By learning about your competition, you will be better able to differentiate your offerings from those of your competitors. 

    You should never dive into a market without first understanding your audience and marketplace. You need to determine the demand for your product and adapt your model to both fit and lead in your field.

    In order to learn more about the market landscape, you have to conduct extensive research. Consider the following.

    • Customer habits
    • Press coverage 
    • Social engagement
    • Online reviews
    • SEO (Search Engine Optimization) rankings
    • Talking with other entrepreneurs
    • Studying sales figures for similar products and services for the past several years

    4. Spreading Your Business Thin 

    A huge mistake that new businesses make is spreading themselves thin by selling too many products. If one product doesn’t do well, you might be tempted to introduce more products to attract customers. You also might have a few very successful products and assume that adding to your roster will mean even more success. However, success is never a guarantee. 

    Your target audience might not be interested in what you have to offer. Your decisions might alienate loyal customers too, if your new offerings take away from the original experience or simplicity of your products. 

    Still, they might be successful but you need to make sure you have the infrastructure established for production, distribution, and quality control, so you can meet the growing demand. For a while, try focusing on the products that are performing well. If you want to attract more customers, you have to establish a brand that is centered on your core values and meeting customer needs consistently. Later on, once you’ve built a solid foundation, consider expanding. 

    5. Overlooking Organic Marketing

    If there is one thing you need to realize, it is the fact that organic marketing is a big deal. You might overlook the potential of organic marketing, which includes blog posts, case studies, guest posts, unpaid tweets, Facebook updates and more, and end up spending too much money on paid ads. Of course, it’s important that you rely on ads as one part of your marketing strategy, you still have to focus on organic content marketing. It not only helps you generate more traffic but build stronger, long-term relationships with your customers. 

    Even though the cost of organic marketing might seem high initially, it is worth it. Since 70% of clicks go directly to organic search results, you have to get it right. It is important that you create content based on the needs of your customers rather than just your business model or programs. 

    manager planning business strategy to avoid business mistakes

    6. Not Offering Incentives

    To get people to take an interest in your products or services, you sometimes need to offer limited amounts of free or value-added items or services. Of course, you don’t want to overspend on these, but there are ways to create intro programs, informational services, or simple products that provide valuable information or enjoyment to get people connected. 

    The primary goal of incentives is to use these perks as gateways for marketing, brand building, and more organic advertising. These offerings allow you to get people signed up for your newsletter, monthly service, or other memberships. This allows you to keep an open dialogue going with your audience.

    7. Not Seeking Help

    There is just so much that business planning can achieve. You have to get the right help if you want to succeed. Common areas where we often need help are with IT management, custodial services, bookkeeping, innovation and creative development, strategic investment, finance, engineering, outside consultation and in simply hiring the right employees. Developing partnerships with talented and experienced individuals across multiple fields gives you access to far more resources, knowledge, and creative power than you would have by yourself. 

    Being an entrepreneur doesn’t mean that you have to take on everything on your own. It simply isn’t possible and the attempt will only wear you out. You have to think about the opportunity cost of doing too many things on your own. While doing everything might sound great, especially if you’re someone who likes to control everything, it tends to be time-consuming and will prevent you from building business relationships and coming up with new ideas. 

    8. Not Knowing Your Target Audience

    A common business mistake that you have to avoid at all costs is not knowing who your target audience is. You have to perform quality research if you want to succeed. Once you have come up with a product idea, you have to learn more about your customers. It is not an easy job to hunt down customers when you focus on building a product first instead of understanding your customers and letting them guide you. 

    Building a customer profile is the name of the game. Take time to process consistent conversions if you want to succeed. It will allow you to establish an environment where you let your customers’ needs lead the way. Even if there is sufficient demand in your niche, you still have to identify the ideal customer you want to target, how best to talk to them, and how to keep them interested and loyal. 

    9. Not Having a Strong Marketing Plan

    Continual success in business requires a strong marketing plan. This means not simply tossing out random, scattered marketing campaigns here and there but creating a clear and sequential strategy that you can follow each day for every aspect of your marketing efforts. 

    Your plan should be well-rounded enough to cover all bases but be specific enough for you to analyze your returns regularly. This way, you can apply what you’ve learned toward creating even better, more focused marketing campaigns.  

    managers working together to avoid business mistakes

    10. Not Securing Your Intellectual Property

    Lastly, you also need to secure your intellectual property to protect your original ideas. Otherwise, anyone can copy and lay claim to your or very similar plans. Intellectual property includes trade secrets, patents, trademarks, and copyrights, along with designs, technologies, and much more. 

    Ensuring the safety of your proprietary information and unique vision is an absolute must. Be careful who you share it with and make sure all individuals in the know have signed detailed non-disclosure agreements. 

    Conclusion

    Creating and running a business may carry a lot of unique struggles. But it also carries with it, an immense amount of positive potential. You’ll be compelled and inspired toward personal growth, creative problem solving, more strategic planning, improved communication and collaboration, and healthy risk-taking. 

    While mistakes are common, they don’t have to ruin us, and we can avoid some of the biggest business mistakes by learning from those who’ve already walked a similar path. 

    Sound Accounts helps business owners like you succeed with individually tailored bookkeeping solutions that improve efficiency, maximize productivity, increase organization, and lower stress. Connect with us today to get started. 

    To learn more about avoiding business mistakes, check out our frequently asked questions below. 

    FAQ

    What are a few common reasons why businesses fail?

    Some common reasons why businesses fail include:

    • Lack of financing. 
    • Not investigating your specific industry or market
    • Failing to develop a business plan
    • Not attracting good talent or partnerships
    • Overspending on the wrong things
    • Expanding too quickly or not quickly enough
    • Underestimating resource requirements
    • Not focusing on marketing and connecting with your audience

    Can poorly managed businesses recover?

    The short answer is yes, but it takes considerable change. It’s not enough to simply realize that what you’re doing isn’t working. You’ve got to be teachable, which is probably the most difficult thing for people, especially entrepreneurs, who are by nature, highly independent. 

    If you remain open to learning, mentorship, guidance, new ideas, refinement, better money management, creative thinking, a lot of adaptation, and a bit of humility, you can turn things around. This will require you to not only refine your business strategy but your own internal mindset and mode of operation as well. 

    What are some good places to look for help with my business?

    You can find loads of help from a multitude of sources including:

    • Mentors
    • Business consultants
    • Financial professionals
    • Other entrepreneurs and managers
    • Books on business, investment, management, leadership, and personal development
    • Public presentations by noteworthy professionals
    • Blogs and other online sources
    • Community resources catering to business owners
    • Networking groups
  • 7 Small Business Improvement Ideas

    7 Small Business Improvement Ideas

    When it comes to running a small business, it can be difficult to ensure consistent improvement. However, it’s the only way that you can achieve success. Having a checklist can help you stay on the right path.

    There’s a lot that business owners can do to make improvements within a 1-year period. No matter what your customer base might be, here are some small business improvement ideas that will come in handy.  

    happy business owner finding small business improvement

    1. Measure Your Marketing

    The first thing you need to do is measure your marketing efforts and the way they affect your customer base. It is crucial that you have a clear idea about which marketing channels are helping to boost sales and which aren’t. It will allow you to identify unsuccessful marketing endeavors or underperforming ones that simply need refining. You need to determine if you are putting your money into the very best campaigns. 

    For instance, you can track how people find your website. It might be through a guest post, an advertisement, a landing page, or a referral program. When you know what works, you get to double your efforts and pour more resources on your successful channels to improve performance. 

    You just might end up finding new opportunities for growth and expansion during your marketing research. So, diving deeper is worth it on several levels. Fortunately, there are plenty of tools that you can use to evaluate your marketing efforts. Utilize the tools at your disposal to the maximum extent. Take advantage of Google Analytics, various SEO programs, and the professional advice of a marketing or digital marketing specialist. 

    2. Upgrade Your Sales Funnel

    Next, ‌ensure that your top-of-funnel prospects are converting into leads, and eventually, paying customers. Even if you have lots of prospects within your industry and market, you still have to get them to make a purchase. An area where you can focus on increasing leads is your website. As we live in a digital world, you have to take complete advantage of your website, associated landing pages, and affiliate sites. 

    A great way to encourage visitors to provide their contact information is by providing them with something valuable. It could be a free trial, an introductory program,  or even a guided demo. As soon as you have an email address, you should be able to provide perks such as insider tips and exclusive discounts to convert leads. 

    Only when you provide something meaningful to potential customers, can you expect them to buy from you and keep coming back for more. Once you get them hooked, you can expect repeat customers who will help drive your business toward success. Also, make sure your rates are in line with the quality of your service and make sense within your market. 

    3. Improve Your Online Presence

    To grow your small business, you have to boost your online presence. Even simple updates to your website can make a huge difference. It is important that your contact information is easy to find. However, you have to take things up a notch. For instance, if your prospects email or call you, provide amazing customer service to them. You should respond to them immediately to resolve their concerns and establish strong customer relations. 

    Make sure your site or sites boast intuitive, easy-to-handle navigation, are clean, modern, and attractive, make sense for your particular industry, and provide important information quickly while keeping customers interested in learning more. 

    A popular marketing trend that can help your small business stand out is local SEO (search engine optimization). It will help your company get noticed and attract more customers in no time.

    Another vital component of upping your online presence is in taking advantage of social media. You can use Facebook to run specialized ads, provide updates, images and video to your followers, run awesome video ads or informational spots on YouTube and access Twitter, Instagram or TikTok to stay engaged with your audience and customers. Whether or not you like social media, it’s here to stay, and it’s a huge marketplace for business owners willing to jump in. 

    4. Invest in Customer Relationships

    Even though improving customer relationships is not a new strategy, it remains one of the most important factors in achieving solid results. To get started, you will need to listen to what your customers are looking for. It will allow you to customize your offerings to suit their needs. Take time to get to know your audience.

    Ask for detailed feedback about your customers’ thoughts on your brand’s equity, which is its value determined by their perception and experience with your brand. Your brand equity has a major impact on its relevance and longevity. Conduct surveys and read online comments. Perform an analysis of the most frequent requests or suggestions and discuss ways to take advantage of this information with other key decision makers in your organization. 

    You will also need to provide outstanding customer service to ensure success. From speedy responses to customer inquiries and simple purchasing and navigation, to offering special deals and reasons for them to remain loyal, there are plenty of ways to improve your relationship with your customers.  

    5. Improve Your Finances

    To make sure that your business moves in the right direction and doesn’t lose momentum, you have to focus on improving your finances. Take time to analyze your financial performance from every angle. This includes expenses, monthly rents and leases, all funds, loan payments, equity share, employment costs, investments, revenue, property (both real and digital), research and development costs and more. 

    If you do not have a dedicated bookkeeper, you need to hire one or outsource the work to an expert bookkeeping service provider. There’s only so much that you can do on your own. It is in your best interest to get help from a professional to better manage your resources, stay current on taxes, navigate the waters during growth periods and economic downturns alike, and spot opportunities you may have missed.

    business owners working on small business improvement ideas

    6. Motivate Employees and Boost Morale

    You rely on your people, not only to get the job done but to make sure your vision for your organization and your brand is translated effectively to your customers. To do so, you not only have to provide excellent training and follow-up, you need to keep them motivated and happy. Check out the suggestions below to improve employee satisfaction and performance.. 

    Recognize Good Work

    To get your employees to do their best, you have to recognize and sometimes reward good work. You can do this by offering a personalized gift, a paid day off, or even a small bonus. Occasionally, you can offer stock or small equity share for rising stars and executives. Recognition goes a long way in motivating employees. It makes them feel noticed, and most importantly, valued. Valued employees are also loyal employees. 

    Make Work Fun

    To avoid burnout and boost motivation levels, try to make work as enjoyable as possible. You can do this by organizing social events, hosting themed get-togethers, providing candy or desserts, playing upbeat music, taking time to simply talk with and get to know each staff member, celebrate employee birthdays and significant life events, and ask employees for their input about how you can make things more fun. There are plenty of ways to get everyone excited about what they do. 

    Provide Flexibility 

    We live in a period of time where employees cherish flexibility more than anything. This is why you should consider allowing your employees to decide the hours they should work. You could even offer provisions for work-from-home days by adopting a hybrid model. Make sure to allow time off for medical appointments, childcare emergencies, and personal days to improve well-being and motivation levels. 

    Ensure Professional Development 

    In addition to the above, you can even offer professional development opportunities to motivate workers. Assign a mentor to each individual employee, offer in-house training, or offer to pay for online or certificate courses that improve their performance and value.  

    7. Keep Up with Current Trends and Innovate

    Lastly, you should also keep up with the latest relevant trends and use this information to develop new products and services. It is impossible to operate your business in isolation. New developments in technology, marketing, products, and communication take place continually. Of course, not all trends are worthy of your attention. But you can absorb the information, analyze it and then make decisions based on the most valuable developments. 

    It’s also very important to keep a close eye on the global market because significant developments can dramatically impact your business. Newer products, faster technologies, more cost-effective production standards, all these can potentially drive business away from you toward your competitors. Staying current and engaged means adapting to necessary changes even while you stay true to the core of your business.  

    Conclusion

    Running a business is a dynamic, ever-changing endeavor. It takes not only vision, heart and will, but a range of skills, a wide knowledge base, great leadership, creativity, adaptability, and more. Long-term success requires an open mind and a readiness to make changes when the market or your audience calls for it. 

    When you combine sound business principles and a willingness to innovate with thoughtful leadership and great money management, you’ll have a winning combination year after year. Consider getting an older business mentor as well, to provide you with wisdom you may otherwise not have access to.

    Sound accounts helps business owners succeed with custom-fit bookkeeping solutions and better money management. Contact us today to learn more. 

    For more information about improving your business, see our frequently asked questions below. 

    FAQ

    What are some popular small business ideas?

    Some popular small business ideas to consider include starting a gym (athletic club), an auto repair shop, restaurant, pub or micro-brewery. Also, consider things like a cleaning business, daycare, an errand-running service, elder care home, construction company, woodworking business, computer repair, second-hand clothing or furniture shop, among others. You can also try becoming a freelancer or independent contractor for other businesses. 

    What are some ways to grow your business?

    If you are looking to improve and grow your business, here are a few things to consider. 

    • Make a clear business plan and set goals.
    • Apply best practices used by the world’s most successful business owners
    • Educate yourself on every detail of your industry
    • Keep financial score: understand your cash flow, debt interest rates and balances, equity, and have a great bookkeeper around to keep you ahead of the curve
    • Motivate your workforce by recognizing value, offering bonuses and prizes, more time off, flexible work hours, and promotions
    • Monitor all the latest trends and apply this information to developing better brands and new business opportunities
    • Understand the positive impact that highly skilled but disadvantaged individuals have on your business
    • Understand how economic downturns affect your not only your employees but your brand. Economic downturns can also provide new opportunities for growth as new needs arise during these seasons. 
    • Improve your relationship with your prime contractor
    • Learn how different cultural and historical beliefs and practices affect the way your brand or business is interpreted within other nations as well as in the United States.
    • Consider the advantages of renewable energy.
    • Consider using independent contractors for certain jobs
    • Sharpen your selling ability with ongoing training or mentorship
    • Master business presentations
    • Understand your business activity targets and how these should steer your goals
    • Consider using high-impact marketing
    • Use social media to your advantage
    • Upgrade your technology

    Where should I look for great business advice?

    The internet is full of excellent blogs written by experienced professionals from every field. Find a few that really speak to you and challenge you to break out of your limitations. Read a new book on business strategy, creativity, development, or personal growth every week or month. You’ll be astonished at how much you learn. 

    Consider hiring a mentor to walk with you for a while, no matter what stage you’re in. They can help you sharpen your current skills, develop new ones, spot troubled areas, gain an understanding of business law, refine your vision and goals, look for new business opportunities, and become a better leader. Their rates will vary depending on their experience level but it’ll be well-worth your time and money.

    The period of time they spend with you can be one of the most impactful seasons in your career. Mentors can add invaluable experience to areas you never knew were falling behind. They also quite often know just how to strengthen and encourage us when we’re feeling lost. Asking for assistance or coaching isn’t a weakness, but a strength. We grow by learning and doing, by using the best of those who’ve gone before us and combining this with our own innovations.