Category: Business

  • 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. 

  • How to organize your business paperwork

    How to organize your business paperwork

    Business managers have so much to take care of from day to day. From product and service development and customer experience, to things like repair, human resource matters, basic bookkeeping, maintenance, presentation and marketing, and so much more.

    Often, when we’re focused on larger matters, those that immediately affect our cash flow and customer satisfaction, we neglect several things that keep us ordered and focused. Over time, these seemingly smaller matters build up until we find ourselves drowning beneath piles of unfinished work and chaos. 

    One of these things we often neglect is organizing our business paperwork. Too many business owners let invoices and contracts, employee paperwork, receipts, marketing materials, and mail pile up, all of it scattered randomly about in barely recognizable stacks, completely out of order.

    This makes it almost impossible to find what you need, right when you need it. This only adds to your stress and frustration as you scramble around trying to locate the right receipt, that one contract, or key document for financial reconciliation, an important meeting, during an audit, or when you want to implement a new policy. 

    It is imperative that, as a business owner, you develop a plan to get organized and stick to it every single day. Your accounting depends on it, your customer satisfaction demands it, your employees deserve it, and your sanity begs for it. In this article, we’re going to look at several easy steps that will help you organize your business paperwork and keep it that way. Let’s jump in. 

    stack of business paperwork that needs organizing

    1. Create a Plan

    Survey your surroundings. Sit down and think about how you can best organize your paperwork for maximum efficiency, safety and ease of access. Work with everyone who regularly accesses these materials, such as your bookkeeper, supervisors, or anyone else who depends on access to your business paperwork.

    Discuss your ideas for getting things organized. Talk about where things will go, what materials you’ll need to accomplish this task, who will help in the organization process, and all policies going forward that dictate who has access and what this access entails. Consider how you want to keep things organized – what systems you want to use. For instance, will you organize by:

    By Year or Time Frame

    By Client and Customer

    By Type (contracts, invoices etc.)

    By Category (hiring/employee, taxes, finances, legal) 

    Or a hybrid version of these

    After that, dive in and get started putting your plan to work. 

    2. Get the Materials You Need

    Good organization requires a few necessary tools to accomplish. You’ll need things like:

    • A strong filing cabinet
    • File folders
    • Shredder
    • Label maker
    • Copier and scanner
    • A safe for important documents
    • Smaller items like staplers,  pens and pencils, tape,  highlighters, liquid paper or tape-style correction materials
    • Waste baskets and recycling bins/baskets
    • Metal or wood baskets/boxes
    • Cleaning supplies: spray, wipes, small towels and more. 

    This list may be slightly different for you. Every organization has different needs and every paperwork system is unique to that business. But as a general guideline, these supplies will equip you with the basic things you need to organize your paperwork, get rid of waste, make things easy to find, and streamline your information workflow. 

    3. Tackle One Area at a Time

    Once you have your plan and your basic materials, it’s time to get on to the nitty-gritty. With paperwork everywhere and so much going on, the best way to stay focused, make sense of things, and not go crazy in the process is to attack one area at a time. If you look at the entire job all at once, it can discourage you. Just take it piece by piece and enjoy watching the progress. 

    You can start on one end and work in a straight line. You can hit the corners first or start from the computer and work out from there. No matter how you go about it, don’t jump all over the place. You’ll get confused, progress will be slow and labored, and it won’t seem like anything is getting done. Chip away at it. Stay on course and you’ll have things organized in less time than you think.

    recycling bin for organizing business paperwork

    4. Purge, Purge, Purge

    Now that you’ve got a plan, and the tools needed to make it happen, it’s time to get rid of everything you don’t need. Toss all junk, unused magazines and newsletters. Go through all your mail. Put necessary pieces in your mail baskets according to importance and date and respond to them quickly. 

    Put that shredder to work and pulverize all your unneeded or redundant paperwork. Be careful not to toss anything important or any financial documentation. You’ll need that for bookkeeping, financial planning, taxes, and audits.

    5. Make Sure You Have the Right Software

    We could have mentioned this above in our section about getting the tools needed for organization. However, it’s too important to lump in with everything else. Make sure you have a copy of or subscription to a top-rated bookkeeping/accounting software like QuickBooks Online, Xero, Oracle, or FreshBooks. There really is no substitute for the organization, features, capabilities, and speed of superb accounting software programs. 

    6. Digital Backup

    In addition to having the right accounting software, it’s also wise to have a paperless filing system, which gives you the ability to scan all documents and input them electronically. This will give you a complete duplicate system in the event you experience an accident or disaster and it destroys your physical copies. 

    An important part of this process is partnering with a respected cloud-based data backup service like SpiderOak, Tresorit, Carbonite, iDrive or others. This will protect you from ever losing important documents, proprietary information, financial data, communications, and media.

    Human errors happen, disasters like earthquakes, fires, and floods can strike at any time, hackers gain unauthorized access, and hardware breaks down. Cloud backup services protect and restore your data so you don’t have to worry about losing a thing. 

    manager training their team to organize business paperwork

    7. Focus on Accessibility and Importance

    When putting things away, think about the importance of each item. Older instructional manuals or general info about an insurance policy aren’t items you need to access daily. But newer invoices, receipts, mail, and all financial documentation need to be close at hand. 

    Be sure to file items in such a way that daily or weekly documents are quickly accessible and things you only need a few times a year are easy to find but not on top of or mixed in with more immediate paperwork. 

    8. Train Your People

    Take the time needed to instruct your staff on how your system of organization works. Make sure everyone has a thorough understanding of where everything goes, why it goes there, how to keep it up, and any limitations or restrictions on access. Getting everyone on-board early on will help you avoid disorganization and confusion later. 

    In Closing

    These steps should give you a basic framework to design your own system to help you organize your business paperwork. Don’t wait until things get out of hand. Get started now. Without great organization, your business will suffer. You will make costly errors, scramble to locate documents, miss investment or creative opportunities, and damage your relationship with employees and customers. 

    Organization isn’t just about keeping things clean, it’s about performing at a higher level, conducting your business in a way that maximizes your resources and abilities to provide superior experiences for your customers and partners, and growing your business revenue in the years to come. 

    To learn more about organizing your business paperwork, see our frequently asked questions and answers below. 

    FAQ

    Why is it important for me to organize my business paperwork?

    When your paperwork is out of order, you can’t find anything when you need it. You will make financial errors, miss tax payments, make audits more difficult on yourself, risk conflict with employees, and increase your own stress substantially. 

    Putting a clear system or organization in place ensures your ability to access imperative documentation quickly, helps you make payments on time, allows you to make more informed financial decisions, and streamlines workflow for everyone in your office. 

    How do I get my business paperwork organized?

    Every business will be different. Yet, there are certain steps every business owner can take to get things in order. Consider the following:

    • Make a plan
    • Get the right tools
    • Follow your system
    • Open and respond to mail right away
    • Backup all files digitally
    • File documents by importance and timeframe
    • Get rid of unneeded documents
    • Teach your team to follow your system 

    What are some common tools needed for better organization?

    Certainly not limited to these, but some important items include:

    • Computer
    • Scanner
    • Filing cabinet
    • File folders
    • Label maker
    • Boxes or baskets for mail
    • Trash and recycling containers
    • Accounting software
    • Digital/paperless filing program
    • Cloud backup service

    And more

  • Best Marketing Ideas for Small Business Owners in 2022

    Best Marketing Ideas for Small Business Owners in 2022

    Building a business takes so much from us as entrepreneurs. Our attention is often drawn to many different things at once. But one thing you should never lose focus on is your marketing strategy. Businesses, both large and small, often live or die on the success of their marketing initiatives. 

    Great marketing certainly takes more investment, both in money and in time. But it is an aspect of your business that holds the potential to entirely change the course of your company. Let’s look at a few of the best marketing ideas for small business owners in 2022. 

    Establish Identity: Create Your Brand and Tell the Right Story

    It may sound obvious, but a lot of companies don’t take the time they need to carve out a wholly unique brand story and identity. Especially now, with the prevalence of online commerce, social media, and international connections, establishing a clear and confident picture of your brand is a strong way to connect with people looking to link with companies, products, and creators that mesh with their values or support their needs. 

    Story is important. More and more people aren’t satisfied with good products on their own. They want to understand how and why you’re different from every other choice, and feel a connection to your goals and your brand’s attributes. 

    Work with great marketing specialists, brand developers, content marketing strategists, and trusted partners to create meaningful brands that not only exceed others in quality, but outdo them with better story and stronger identity. 

    business professionals applying their best marketing ideas

    Focus: Niche is Good

    This may seem like a no-brainer to some of you and completely unnecessary to others. You may be tempted to try and be everything to everyone, to solve all problems and provide all solutions in your field. This usually doesn’t pan out well. Instead, focus. Decide who your target audience is, why they need you and why your solution is superior. 

    Of the handful of things you feel good about doing, narrow your focus to the ones, or just one, that rises above all the others, the one your company excels at the most. Instead of spreading your resources and your marketing strategy across too many offerings, pour it all into one or two products or services in which you have the potential to affect great influence in your chosen field. 

    Start a Referral or Rewards Program

    This kind of promotion will certainly look different for every business owner. But providing your clients or customers with the ability to gain a great level of value from their purchases will go a long way to ensuring they come back and talk about you with friends and colleagues. 

    Work with your marketer to create special offers for existing and potential customers, discount clubs, or ongoing memberships that give them solid savings, members-only products, and access to information or events only available to those who sign up.

    For clients, offer perks for referring others to you. It could be a discount on present services or one on a future purchase. It might be a bump up to a higher level service, or something only your business can offer. Special programs like this can give your customers a sense of belonging and exclusivity and inspire them to keep coming back around. 

    social media is one of the best marketing ideas

    Don’t Ignore Social 

    Whether we enjoy social media channels or not, it’s definitely here to stay. And its influence on brands and companies is growing month after month. Superb video ads, humorous and informative YouTube, Facebook, TikTok, and Instagram videos and posts can really connect. 

    Authentic reviews from happy customers and letting your guard down with intimate behind the scenes looks at production, company values, personal story, and the creative process can really inspire and draw in new followers. Continually relevant content helps build dedicated communities, not just customers. 

    Automate

    Some things aren’t good for automation. Some are. Certain aspects of marketing can be automated to help you be more effective with less effort. Marketing specialists have incredible access to a wide range of technologies today. 

    These applications allow creators to write and develop marketing materials, response letters, requests for reviews and feedback, sign-up forms, blog posts, regular emails, newsletters, and social media posts, then input, schedule, and let the program do the rest of the work of posting, emailing, and gathering customer info. This also helps you get to know your audience, build an email list, and learn both better ways to market and solve customer needs.  

    Create Explainer Videos

    Most folks love these, especially if they’re both entertaining and informative. Create high quality, straightforward videos that explain how to use your products and services so users know exactly what they’re doing and gain confidence in your service. It’s also a great chance to build rapport with your audience and keep them thinking about your brand.

    Offer Live Chat

    If you can afford it, live chat can be a game-changer for your customer’s experience. No matter how much info or FAQ’s you offer, most of us prefer or need to speak with a real person. Live chat gives customers and clients a direct connection to a qualified professional who can answer all their questions, help them sign up or make purchases, and solve any issues that may arise.

    Knowing that they can reach a real, attentive person will help to establish you as the better brand and problem-solver in the minds of your customers. No matter how much technology we adopt, nothing will ever replace the comfort and confidence gained by knowing we have direct access to a caring professional. 

    Use Analytics 

    Nearly all social media platforms, online advertising providers and browsers, along with a variety of other tech creators, offer a range of analytical solutions for your marketing efforts, for understanding consumer habits, and current trends driving business today. 

    Take time to familiarize yourself with these tools and hire or contract a professional who understands analytics inside and out. The information within detailed analytical reports allows you to make better decisions for your brand and your finances. You’ll gain the knowledge you need to remain agile, to shift your focus when needed, innovate and create new and better products, reorient your brand message, spot problems early on, solve them more quickly, and connect more effectively with your audience. 

    Hire a Professional

    Whether you establish a dedicated marketing department in-house or outsource your efforts to an experienced marketing experts, there is absolutely no substitute for years of experience, market knowledge, and good education. 

    Professional marketing strategists, content creators, brand developers, and other advertising and marketing specialists pour the full weight of their skills and knowledge into your brand and message. This also allows you to focus on things where you’re often more gifted, like leading your team, managing production, connecting with customers, and refining customer experience. 

    Conclusion

    While this is only a small sampling of marketing tips for the year ahead, it’s a great place to start, especially if you aren’t already expanding your marketing efforts. Marketing is never something you want to ignore. It establishes your brand’s identity and story, helps you connect meaningfully with customers, brings greater attention from possible partners and collaborators, and ups your image within the market. We’ll look at even more marketing tips soon.

    Sound Accounts helps business owners solve all their bookkeeping needs. We offer a range of services that turn your bookkeeping from a burden into an asset. Contact us today to get started. 

    For quick answers to marketing questions, take a look at our frequently asked questions below. 

    FAQ

    Why is marketing important for my business?

    Developing a strong marketing strategy ensures you establish a solid position within your field. It creates strong brands with compelling stories, draws in new customers and helps retain existing ones, helps you build strategic partnerships and create the legacy you want. 

    What are some basics of marketing everyone should remember?

    There are many. But it’s good to start by focusing on a niche, your strongest creations, use social media and video, find ways to connect with your audience, offer top-notch customer service, offer additional perks with memberships and referrals, use analytics and partner with experienced marketing professionals. 

    Should I handle marketing on my own?

    Some business owners can, especially if they have a strong marketing background. But for most of us, even those who do understand it well, it can often take up a great deal of our time and efforts, which takes us away from other management and leadership tasks. Linking up with experienced marketers gives you access to years of experience, a deep well of creativity, brand new technology, better automation, great advice and guidance, and someone always ready to innovate and try new solutions. 

  • How do I Know it’s Time to Expand My Business?

    How do I Know it’s Time to Expand My Business?

    Small business ownership is a journey that is full of unknowns, especially in the beginning. It is exciting to own your own business, but it can also be challenging knowing that all the decisions fall on you. One of the biggest decisions you’ll face as a small business owner happens when you ask yourself, “When is the right time to expand my business?” Here are four signs that your small business might be in a good place to expand.

    1. You have outgrown your space, or you can’t keep up with demand

    So you’re bursting at the seams at your current location and you are so busy that you can’t keep up with your customer demands. That’s great news! But that’s also a clear sign it is time to expand your business.

    If the demand for your product and service exceeds what you can produce, it is definitely time to expand. There is clearly a target market for what you have to offer. If your customer base is clamoring for more, why not expand your business and make the changes necessary to meet the demand?

    Outgrowing your space is also a clear sign it is time to expand your small business. Whether you and a business partner have outgrown working from your dining room table, or you own a bustling coffee shop with lines that stretch out around the block, you are clearly ready to expand to a space or location that better fits your needs.

    business owner discussing the question "Is it time to expand my business?"

    2. Your business requires a skill set that you don’t have

    When you are just starting out, it is on you to handle all the details of managing your own business. Regardless of what type of business you run, product you create, or service you offer, you are also in charge of your own marketing, accounting, customer service, and more. As your business grows, you may find that you no longer have the skill set to take your small business to the next level. If your business is doing well enough that you have the budget to hire staff or outsource work to experts, then it might be a good time to expand.

    If you think you can get more leverage from better social media marketing campaigns, then expand your staff to include someone to do just that. Or if you see a need in the market that you’d like to support, but don’t have the skill set for, bring on a new partner who does. It’s hard to let go of the reins, but bringing in an expert who can fill a need is a great way to expand your business.

    3. You recognize the need to diversify 

    Let’s say that your business is going well, but you have noticed a plateau. You have a steady stream of customers, but they are the same customers coming in over and over. This is one sign you may need to diversify your product or service offerings in order to get in front of a new audience. That’s not to say that there is anything wrong with having repeat customers; the fact that you have loyal customers is great news for your growing business. But if you’ve hit the ceiling of how far you can grow your business with your current product and your current customers, then diversifying can be a great way to expand your business. You’ll have a steady cash flow from your existing products and services that can give you the financial stability and the confidence to branch out and try something new. 

    On the flip side, you may be offering dozens of products and services, but only one of them is profitable. You’ve got a golden egg, but you’re not sure if that is sustainable. Take a step back and consider how you might scale down or eliminate underperforming products and services. Also, take time to consider that another reason you might need to diversify is that you recognize that of all the services and products you are offering, only one of them is making your “golden egg” successful and think about how you might take what you’ve learned to create more successful products. Diversifying strategically can ensure you aren’t counting on just one thing to keep your business afloat.

    female business owner discussing the question "Is it time to expand my business?"

    4. Your business is in a good place financially

    Maybe none of the above applies to you, but your small business is in a great place financially. You have a positive cash flow, your customer base is happy, and you are comfortable. That’s great! But that might also be the nudge you need to try something new. If your business is doing well, it could be an excellent opportunity to think about a new product you’ve been meaning to test out, or offer an additional service that could expand your customer reach. Take small steps to test out growth opportunities, knowing your business is financially sound.

    When you are ready to expand your business, Sound Accounts can scale up our services to fit your needs. We support small businesses at every stage of growth. Contact us to find out more about how we can support your growing business.

    For helpful info on expanding your business, check out our frequently asked questions and answers below. 

    FAQ’s

    What are some signs that it’s time to expand my business?

    If you have grown out of your workspace, are unable to keep up with product demand, or want to diversify your offerings, then it might be a good time to expand. If your business is in a financially healthy place and you want to grow, this is also a good sign that it is time to expand.

    What are some things I should consider when I’m preparing to expand my business?

    Some things you should consider are: Is my business financially stable? Is there a market for the product or service I want to expand to? Do I have a physical need to get into a bigger space? How will I define success as I expand my business?

    What are some questions I should ask before I expand my business?

    If you are thinking about expanding your business, here are some questions to ask yourself: Are you growing out of your current work space or business location? Are you unable to keep up with demand? Is there a skill set that you don’t have, one that could help your business grow? Do you want or need to diversify your products and services?

  • Outsourcing Overseas: Is it Right for My Business?

    Outsourcing Overseas: Is it Right for My Business?

    As your small business grows, one question you may be thinking of is whether or not it is worth it to outsource some of your work overseas. If you are considering outsourcing a portion of the work that goes into running your company, there are both advantages and disadvantages to consider before making this decision. Here’s what savvy business owners need to know about outsourcing overseas in order to make an informed choice.

    Benefits Of Outsourcing Overseas

    Outsourcing saves money

    Outsourcing can help you save money by allowing you to hire someone else to do certain tasks for which you would otherwise have had to pay wages. For example, if you were paying yourself $50 per hour as a bookkeeper but could find someone who was willing to charge only $25 per hour, then you might decide to outsource those services instead. This way, you don’t have to spend all of your time doing accounting while also having to worry about finding enough hours in each week to cover both jobs. Outsourcing allows you to focus on other aspects of your business such as marketing, sales, customer service, etc., rather than spending most of your time managing payroll and keeping track of financial records. The cost savings can be significant when you allow someone who is faster and more efficient to manage tasks that are time-consuming for you.

    Outsourcing saves time

    If you’re already working long hours at your own job, chances are you probably aren’t able to devote nearly as much attention to your business as you’d like. When you outsource part of your workload, you free up time so that you can dedicate even more energy towards growing your business. Instead of being tied down with administrative duties, you can use that extra time to market your products and services, develop new strategies, meet potential clients face-to-face, and generally grow your business.

    Continuing with the example of bookkeeping, let’s say that you are responsible for the following (knowing that the specifics may differ slightly based on your unique business model):

    • Entering and updating stock and inventory counts
    • Creating and updating client files (biographical information, pay preferences)
    • Creating, updating, and sending invoices
    • Payroll processing
    • Reconciling accounts

    How often are you required to do each of those tasks to keep your business running smoothly? And how long does the completion of each task take? Add up the hours that you spend on these routine tasks and think about what you could do for your small business if those hours were freed up?

    What tasks or processes would you actually like to outsource? Do the above assignment to get a clearer picture of the amount of time saved by outsourcing these routine tasks and processes.

    business owner outsourcing overseas

    Outsourcing improves productivity

    When you take stock of the areas of your small business that you could outsource, you are better able to see the potential for productivity to increase. Outsourcing doesn’t just save you time and money personally; by outsourcing routine, tedious, or time-consuming tasks, you free up your staff to better focus their own time and energy on high-value actions. Outsourcing can improve productivity for your staff overall.

    Perhaps there are areas where outsourcing makes sense for your staff. It may not necessarily free up your own time, but you’ll be better able to redirect your employees time toward areas that they excel in or avenues for business growth that you haven’t had the staff power to pursue. 

    When you are outsourcing work overseas, you’ll be working with an individual or team in another time zone. While communicating with a different time zone may require some adjustment, it also means that you have people working for you around the clock. Improvements will be made to your business even as you sleep! 

    Outsourcing gives you access to experts

    The benefits of outsourcing go beyond simply saving you time and money. One major benefit is that you can work with people who are experts in the area that you wish to outsource. You can tap into expert advice and guidance whenever you need it. Whether you’re trying to figure out how to streamline your bookkeeping, create a website, design a logo, or identify areas of inefficiency in your warehouse management, you can always turn to professionals who know exactly what you need. If you have an idea for something that you want done, but don’t feel confident enough to tackle it yourself, consider hiring someone else to help you achieve your goals.

    In addition to gaining access to additional resources, you also gain access to different perspectives. By tapping into the experiences of other people, you learn from them and adapt your approach accordingly. For instance, maybe you’ve been using Excel spreadsheets to manage all of your data entry needs. But after talking to a professional accountant, you realize that this isn’t the best way to organize your finances. So instead of continuing to rely solely on Excel, you decide to switch to QuickBooks Online. The difference between relying on Excel versus QuickBooks is that you now have two options available to you. With both systems, you still have access to all of the same features, but you now have the option to choose which system works best for you.

    Challenges of outsourcing overseas

    Security Risks

    One of the disadvantages of outsourcing overseas is the security risk if the tasks you are outsourcing have to do with accessing or handling data of any kind. But this would be true whether you outsource locally or abroad. Some things you can do to lessen security threats:

    • Carefully vet your outsourcing company
    • Require advanced security levels, such as multi-factor authentication, changing passwords often, and using a virtual private network
    • Have clear guidelines about who can access sensitive data, when they can access it, and under what circumstances they are allowed to access it

    Loss of control

    You have to give up a certain amount of control when outsourcing overseas; you can’t physically be there to observe and supervise the way tasks are handled and priorities managed. The suggestions above can help mitigate some of these worries, especially when you take the time to choose a reputable outsourced company and you have clear guidelines about how they will manage your tasks. But there is truth to the fact that if you are going to outsource, you are going to have to give up some control. And that can only work when you have a high level of trust in your outsourced service provider and are confident in their ability to make wise decisions and then loop you in when needed.

    business owner dealing with communication while outsourcing overseas

    Communication Challenges

    Clear and honest communication can be challenging even under the best of circumstances. But when you are working with an outsourced team overseas, you add additional challenges to your communication. These can include cultural differences or nuances that take time to recognize and understand, language barriers and translation errors, and even communicating virtually means you lose the ability to read body language and tone. None of these are insurmountable challenges, but if you are going to outsource overseas you are going to need to put more time into relationship management in the beginning to ensure that you and your outsourced team are communicating accurately. Clear communication will be a major factor in your ability to maintain healthy ongoing relationships with your outsourced provider.

    The bottom line is outsourcing has many pros and cons. Ultimately, though, it comes down to this simple decision: will outsourcing overseas allow you to maintain the quality of your products and services while freeing up time to focus on growing your business, creating new products and services, and expanding your vision? Only you know what is best for your business, but we hope this guide has helped you better understand the pros and cons of outsourcing.

    Are you ready to outsource your bookkeeping but are unsure of where to start? Or maybe you’d like to keep your business relationship closer to home? Sound Accounts offers a variety of bookkeeping services. Contact us today to find out how we can best serve your needs.

    For quick information on outsourcing overseas, check out our frequently asked questions and answers below. 

    FAQ’s

    What is outsourcing?

    Outsourcing is taking a service or a task that you might normally do in-house, and contracting with someone outside of your business to manage it on your behalf.

    What tasks can be outsourced?

    Just about anything! You can outsource your bookkeeping, administrative tasks, human resources, marketing, web design needs, application development, and your manufacturing, just to name a few. Any business operations you can do in-house, you can probably outsource to someone else.

    What are the benefits of outsourcing?

    Outsourcing often saves both time and money. It can allow you and your staff to work more efficiently and focus your energy on your own areas of expertise, while allowing other experts to manage aspects of your business that are more challenging or simply not time-effective for you to manage.

    What are the downsides to outsourcing?

    Outsourcing involves a certain level of loss of control; you have to be comfortable allowing someone else, perhaps even multiple people, to manage something that was once under your purview. Depending on the type of service or task you are outsourcing, there may be some security threats or concerns that you need to address. And you will also find that communication may be more challenging when you are outsourcing to a company that is overseas.

  • What is the Average cost of accounting services for small business?

    What is the Average cost of accounting services for small business?

    It is a wonderful thing when your small business grows to the point that you need to add support staff. And one of the best investments you can make in support staff is to hire outsourced accounting services. Outsourcing your bookkeeping to a professional service provider can free up your time and allow you to focus on growing your business. It also ensures that you have an expert accounting professional who can manage your small business finances with accuracy. 

    But how do you know what to budget for when it comes to accounting services? Let’s break down the different ways you can look at the cost of accounting services so that you can make the best financial decisions possible for your small business.

    How to calculate the cost of accounting services

    Accounting expenses should be included in your businesses’ overhead costs. These are costs that do not necessarily turn a profit, but are nevertheless necessary for the function of your business. Other examples of overhead include software, rent, licenses applicable to your industry, shipping, and legal expenses. When you understand that accounting services are a necessary part of your overhead, it is easier to budget an appropriate amount for that line item.

    The fees for accounting services vary based on your business size, needs, and even your business structure. For example, if you ship a physical product, your accounting services will need to keep track of incoming and outgoing inventory, warehouse stock, shipping costs, and more. If you have a large staff, your accounting services will have to factor in payroll management. Are you a sole proprietorship who just needs occasional support to keep all your invoices straight? Can you manage basic bookkeeping tasks, but need help to create accurate financial reports and forecasts? These are all different needs that may have different prices associated with each task.

    If you hire a part-time bookkeeper or business accountant for simplified accounting tasks, then you will likely pay an hourly rate for their services. As your needs increase, you can add on more hourly work as needed. The hourly rate for outsourcing a bookkeeper runs between $25.00 and $300.00 an hour depending on several factors, especially if services involve more complex accounting practices.. Keep in mind that this is a national average, and the average in your city may differ. A skilled and experienced bookkeeper will usually land on the higher end though it would still be a worthwhile investment because of the expertise they bring to your small business.

    If you run a larger or more complicated business, you may need to pay a monthly retainer for a fixed number of tasks and services from a freelance accountant. The average price of outsourcing your bookkeeping can range from $500 a month to $2500 a month, depending on the amount of work and the complexity of the bookkeeping you need.

    Or you may choose to go the route of accounting software, which can streamline your bookkeeping and provide similar reports and insights that a bookkeeping professional can. In that case, your costs will be based on the accounting software you choose, whether it is a one-time desktop software purchase or a cloud-based monthly subscription. You may also have different subscription options where your monthly fee will depend on the size of your business or the number of software users.

    PCMag.com did a 2021 round-up comparing ten top accounting software systems, which includes not only specifics and benefits for each but a cost comparison. If you were to choose from those options, you could pay anywhere between $3.99 a month to $60 a month. Within that price range, you have a wide array of options to suit your needs and find the product that gives you the features you want at a price you can afford. Just be mindful that you get what you pay for, and you still may end up wanting to hire a bookkeeper to manage the software for you.

    If you have a large business or run multiple businesses, it may be most valuable to have an in-house bookkeeper. But if you go that route, you’ll be adding a full-time staff to your payroll and possibly including benefits, making this the most expensive option if you are just comparing dollar amounts between the above options.

    woman handling outsourced accounting services for a business

    The cost of not having an accountant

    The flip side of this is, of course, counting the cost of not having an accountant. That may not seem as straightforward or tangible as looking at the hard numbers of hiring an accountant. But consider the following questions:

    How many hours a month are you spending on bookkeeping, and what is your hourly rate? How much are you investing in managing your small business accounting yourself? How much time are you putting into it? Could that time be better redirected to other areas of your small business, such as pursuing growth opportunities, improving your marketing, or coming up with new products and services? Is your time more valuable as a bookkeeper and managing reports, or as a visionary for your small business? What is the return on investment when you are your own bookkeeper vs. hiring a bookkeeper? 

    You know your small business best, and as a business owner you are already juggling multiple priorities. Does hiring a bookkeeper help you better realign your priorities in a way that promotes growth? If so, the cost is a worthwhile investment, no matter which option you choose.

    FAQ’s

    What are the benefits of bookkeeping services?

    You’ll get peace of mind, knowing that a bookkeeping expert is managing your small business accounts, maintaining your financial records, and providing tax preparation and other tax services. You’ll benefit from their experience and skill at maintaining detailed records. You’ll also have more time to devote to managing and growing your business. A bookkeeper can also give you a clear picture of your cash flow management and the overall financial health of your business. This gives you the knowledge to make wise financial decisions as your business grows.

    What can I expect from a bookkeeping service?

    Bookkeeping services can include invoicing and bill pay, bank and credit card reconciliations, financial reporting, financial statement preparation, accounts payable or receivable management, sales and sales tax reporting, tax planning, filing business taxes and more. A bookkeeping service can also help clean up your existing financial files, adding financial information to a new bookkeeping software, and even training on bookkeeping software.

    So how much will bookkeeping services cost my small business?

    The short answer, it depends! Do you need support on a monthly basis, or just in advance of quarterly tax returns? Do you want to hire a bookkeeper, get an accounting software subscription, or a combination of both? There are many affordable options out there that will fit your needs and budget. Most experienced bookkeepers and accounting software services offer options for a flat rate per month. Your annual costs for bookkeeping will be easier to plan for when you can break it down into cost-per-month. 

     

    If you are ready to expand your business and outsource your bookkeeping, Sound Accounts is here to help. We offer both monthly and quarterly bookkeeping services so you can get the support you need that fits in your budget. Contact us for a free assessment today!

  • What Does a Bookkeeper Do Exactly?

    What Does a Bookkeeper Do Exactly?

    Bookkeeping is the process of recording financial transactions and other information related to a business or organization. This includes keeping track of income and expenses, payroll, accounts payable, accounts receivable, and more. But more than that, what a bookkeeper does is give you peace of mind. When you hire a bookkeeper, you get an expert at managing business accounts, tracking expenses and income, and ensuring that your quarterly taxes are paid accurately and on time. But that’s just the short answer. Let’s get down to the nitty gritty of what a bookkeeper can do for your small business.

    bookkeeper looking over finances of a small business

    What can a bookkeeper do?

    Most bookkeepers are no longer keeping hard copy “books” and ledgers to track financial statements and other transactional information for business owners. To manage bookkeeping services, they may use spreadsheets, accounting software, and even bookkeeping apps that connect bookkeeping software to banks and other financial institutions to make tracking income and expenses easier. They perform a variety of bookkeeping tasks all designed to help you manage your small business finances in a healthy and prudent way.

    Bookkeepers use these tools to complete data entry and record transaction details for both income and expenditures. They’ll track credits (incoming money) and debits (outgoing money) for each account of your small business. They can manage both paying bills and employee payroll. Bookkeepers can create a balance sheet, income statement, cash flow statement, statement of changes in equity, and many other types of financial statements that help you understand where your business is financially. Each detailed report can highlight a different snapshot or key metric of your businesses’ financial health at any given time. 

    Bookkeepers also produce and/or pay invoices for inventory orders, services, outgoing transactions, and other bills. They can manage accounts receivable, accounts payable, and employee payroll services. This ensures that your bills get paid, your employees get paid, and you get paid on time. Their attention will ensure that you don’t have any overdue accounts, and that any debt payments happen on time. They can ensure that you have a healthy cash flow throughout high and low-volume cycles of your business.

    Because they have the full financial picture of your small business, your bookkeeper can help you make better budgeting decisions, identify patterns, and understand the seasonal flow of your income and business expenses. They can help you understand the metrics of your company’s financial health, monitor debt levels, keep you up to date on any tax code changes, and report on issues as they come up. They can highlight the financial impact of business decisions and provide the best value recommendations for a financially sound future. 

    Beyond the practical services that a bookkeeper provides, their value also lies in the efficiency they bring to your small business. As a small business owner, you obviously have the acumen for managing the financial details of creating and owning a business. Still, hiring a bookkeeper means you have a financial expert keeping an eye on the bottom line, helping to ensure that all your choices lead to a more focused and successful financial makeup within the framework of your business. Even freelancers can benefit greatly from the organizational and financial benefits of a good bookkeeper. 

    One of a bookkeepers’ most important tasks is to monitor financial records to ensure they are accurate, which means reconciling and reporting any discrepancies found in the bookkeeping records. They’ll be able to minimize and correct errors to ensure that your financial reports and data are accurate. The peace of mind and attention to detail that a bookkeeper brings can be invaluable if your business is audited. Having accurate bookkeeping records can make the auditing process go much more smoothly than if you have incomplete records.

    bookkeeper working with his small business client

    They also free up your time and allow you to focus on the areas of business ownership that you excel at or enjoy the most, such as planning for future growth, focusing on customer and user experience, or creating new products and services. And as your business grows and your accounting needs increase or become more complex, your bookkeeper can also train additional bookkeeping staff to meet the changing needs of your professional objectives. One of the best financial decisions you can make is to hire an expert bookkeeper who can support the financial health of your business and train other employees to do the same.

    Sound Accounts provides bookkeeping, payroll, and licensing services for small businesses. Contact us to see how we can best support your growing business.

    For quick answers to a few of your bookkeeper inquiries, check out our frequently asked questions below. 

    FAQ’s

    What does a bookkeeper do?

    A bookkeeper records and reconciles all financial aspects of your small business. They can maintain financial records, manage invoicing, bank reconciliation, payments, and payroll. They manage day-to-day accounting tasks in addition to generating both annual and monthly reports to keep you up to date on the financial health of your business.  And their experience can simplify the process of paying small business taxes each quarter.

    How can a bookkeeper help my small business?

    They can take the load of making and recording financial transactions off your plate. Their expertise can give you peace of mind and free up your time to manage other areas of your small business. They can also help you understand the overall health and seasonal patterns of your small business, provide business recommendations, and help you make wise financial decisions through accurate reporting.

    Can I just use a bookkeeping software instead of hiring a bookkeeper?

    Bookkeeping software or cloud-based bookkeeping services are fantastic resources, but they are only as good as the information you put into it. It can store your business transactions, but it can’t make intuitive business decisions, identify growth areas, or catch mistakes and reconcile errors in the same way that a person can. Hiring a bookkeeper is an investment that will pay off for your small business.

  • How to choose the best Virtual bookkeeping services

    How to choose the best Virtual bookkeeping services

    Whether you are just thinking about starting a business or are in the early stages of running your small business, one top priority should be to decide how to manage your bookkeeping. Keeping your business finances organized, especially in the first year, is vital to the success and health of your growing business. Here are our top tips for how business owners can choose the best virtual bookkeeping services. For quick answers to some of your most important questions, check out our FAQ (frequently asked questions) at the end of the article. 

    What is virtual bookkeeping?

    There are really two answers to this question, but both essentially have to do with recording, categorizing, and reconciling your business transactions, producing financial reports virtually, and even managing payroll. The difference is in whether you choose to do it yourself with accounting software, or hire a dedicated bookkeeper to manage your business finances virtually. 

    There are more options than ever for business owners, both in terms of software options for do-it-yourself bookkeeping and with bookkeeping companies and freelancers who can bring both bookkeeping and small business experience to your company. 

    Virtual bookkeeping software is designed to take the guesswork out of expense tracking, inventory tracking, reconciling monthly transactions, and creating cash flow statements. Whereas hiring a virtual accountant means you have a real person who understands the nuances of accounting and bookkeeping. Online accountants can answer questions in real time and be on call when you need support and advisory services.

    freelance virtual bookkeeper doing accounting for a small business

    Why choose a virtual bookkeeping service?

    One of the most obvious benefits of virtual bookkeeping is how it organizes your record-keeping. Picture this: relying on paper files means you have to take the time to create an easy-to-navigate file organization plan, follow through on that organization so that you can conveniently find the information you need, and manage an ever-growing storage system to stay on top of your records.

    On the flip side, virtual bookkeeping organizes all your small business data and information in the cloud. Not only do you have robust search engines that help you find important information in a fraction of the time, you’ll probably free up an enormous amount of physical space in your office. Virtual bookkeeping is secure and simple to navigate, and makes tax season that much easier.

    But staying organized doesn’t just help you when tax filing needs to happen; the robust reporting tools that come with virtual bookkeeping products allow you to identify areas of improvement, make healthy financial decisions, and think ahead about when and how to scale up your business sustainably. Choosing a good virtual bookkeeping service can help you accomplish these aspects of running a small business while keeping an eye on the bottom line.

    Choosing a dedicated bookkeeper to manage your small business finances provides peace of mind for business owners. Whether they feel nervous about reconciling business accounts, or feel they don’t have the time needed to manage the volume of monthly reconciliations, a dedicated account manager or virtual bookkeeper can provide accurate accounting and additional services as needed.

    Using a virtual bookkeeping business or hiring an experienced freelance bookkeeper also provides affordable bookkeeping services, as compared to hiring someone full-time to manage your books in-house. Many professional bookkeepers offer competitive pricing with either a flat rate, monthly rate, or custom pricing based on your individual needs, making this an excellent option for small businesses or companies that are just starting out.

    What are the options for virtual bookkeeping services?

    The most important thing that any bookkeeper will do for you is keep track of your books on an ongoing basis so that they know what’s going on with your money. This means keeping accurate records of transactions as well as tracking income, expenses, and payroll over time. If you’re looking for online bookkeeping services, there are three options: cloud-based solutions, desktop software, and hiring a virtual bookkeeper. Cloud-based solutions offer many benefits including ease of use, flexibility, scalability, security, and cost savings. Desktop software offers similar features but also includes more robust reporting capabilities. Both options have their pros and cons, which we’ll discuss below.

    Cloud-Based Solutions

    A cloud-based accounting system works by storing data online instead of using local hard drives. The advantage here is that this type of setup makes accessing information easy because everything happens through the internet. You don’t need to worry about backing up files or having them physically stored somewhere else. It also helps if you want to access your accounting records from anywhere since you won’t need to download anything onto your computer. However, one downside to cloud-based systems is that they aren’t always secure. They may not encrypt sensitive documents like bank statements, making them vulnerable to hackers who might steal personal information. Another drawback is that some companies charge monthly fees for storage space. These costs add up quickly, particularly if you run multiple businesses.

    Desktop Software

    If you prefer working with traditional methods such as spreadsheets and paper forms, then desktop software is probably right for you. With desktop software, you get full control over every aspect of your accounting processes. For example, you can create custom reports, enter new transaction details manually, and even print invoices directly from within the program itself. One major benefit of desktop software is its ability to integrate with other programs. So, if you already use QuickBooks Online for payroll processing, you could easily import employee hours into QBO while still maintaining separate entries for each individual. In addition, you can sync your inventory between different locations via barcode scanning technology.

    Virtual Bookkeeping Personnel

    You can also choose to outsource your bookkeeping and hire a dedicated bookkeeper to manage your accounting virtually. This is someone who has access to and can manage and reconcile your financial transactions. They’ll provide accounting expertise and take the guess-work out of filing your quarterly and annual taxes. You may even be able to find someone that has significant experience in your industry, meaning they can provide expertise and knowledge beyond number-crunching.

    Think about the unique benefits that cloud-based solutions, desktop software, and virtual bookkeepers can each provide your small business. Your decision may just come down to personal preference, but think about what makes your small business or industry unique.

    Are there services and benefits that make one option more attractive than the other? How does cost factor into your decision? Do you want to have robust options for scalability as your small business grows? Can you invest better in your small business by managing your accounting and transactions yourself or by outsourcing your bookkeeping?

    Your answers to each of these questions can help you narrow down the options and make the best choice for your virtual bookkeeping services.

    virtual bookkeeper helping a small business

    What makes a good virtual bookkeeping service?

    When it comes to software, every option is going to offer basic bookkeeping services and accounting support. But the best ones go above and beyond that with added tools that make small business management easier and more efficient.

    Some systems offer project management and communication tools, allowing a high-level of collaboration that is ideal for businesses with a lot of employees. Other tools have processes for tracking and managing inventory and shipping, which is great if your small business produces a physical product. Some services will give you the option of creating custom reports, while others offer a variety of reports but no custom build-out options. And some software providers offer efficient solutions for automating regular processes, such as monthly reconciliations and quarterly financial statements. Again, a big factor in your decision-making should be deciding what bells and whistles are specific to your small business needs and necessary for your success.

    One specific service to research when looking into managing your own finances through bookkeeping software is customer service or customer support. When you are looking at virtual bookkeeping services, find out if they offer training videos, troubleshooting, or a 24/7 hotline that you can call anytime you need help with the software. The more responsive they are to customer needs, the better your experience will be in using their virtual bookkeeping software. You can also check out online reviews of their customer service.

    When looking for a virtual bookkeeper to manage your accounts, ask about their experience, how long they’ve been bookkeeping, how they will communicate with you, if they offer payroll services, and the accounting tools that they prefer to use. Check to see if they have their own website, or if there are online reviews of their bookkeeping services. If you feel like you can manage the majority of your accounting yourself and just need help around tax time, ask about their fees for quarterly tax services.

    Going with a virtual bookkeeper (rather than managing bookkeeping software yourself) can provide business owners with real-world advice on the best software and tools for their unique business needs.

    Sound Accounts offers virtual bookkeeping, payroll, and licensing services to small businesses in a variety of industries. Contact us for a free consultation to see if our services are a good fit for your company.

    Learn more about virtual bookkeeping with our frequently asked questions and answers below. 

    FAQ’s

    What is a virtual bookkeeping service?

    A virtual bookkeeping service is a cloud-based software used to track transactions, prepare monthly income and expense summaries, file taxes, and generate various types of reports. Business information is entered into the system so it accurately reflects the company’s finances.

    What is a virtual bookkeeper and what do they do?

    A virtual bookkeeper is an online accountant who works remotely from home. They take care of all aspects of running your books including: entering transactions, reconciling bank accounts and financial records, preparing financial statements, analyzing data, generating reports, and providing tax advice. A virtual bookkeeper also helps clients file taxes on time so they don’t incur penalties. Virtual bookkeepers typically charge hourly rates based on how many hours per month they work.

    What are the benefits of hiring a virtual bookkeeper vs. using bookkeeping software? 

    There are several reasons why you might want to hire a virtual bookkeeper instead of doing this task yourself. They save time by taking the task of entering transactions manually off your plate. Hiring a professional means you won’t have to worry about mistakes being made because no one else has access to your personal files. Finally, working with a virtual bookkeeper allows you to focus on other parts of your business rather than spending valuable time tracking down errors and trying to figure out where things went wrong. Bookkeeping software is a great tool, but it is only as good as the information you put in it. If you have concerns about accuracy, or feel you may not have the time to devote to tracking all your transactions, then hiring a virtual bookkeeper is a wise investment for your small business.

  • Everything You Need to Know About Sales Orders in QuickBooks

    Everything You Need to Know About Sales Orders in QuickBooks

    A sales order is simply a document used by businesses to record transactions with customers. It contains information about products sold, prices charged, payment terms offered, and shipping details. A sales order includes all the necessary information needed to complete a sale transaction between two parties: buyer and seller. For example, if the product you sell is a widget and you sell online, then you would need to have a sales order created so that buyers could place their orders. Once they do, you send out invoices based on the amount paid per widget. If you are selling more than just widgets, then you may also want to use other types of documents, including vendor bills of lading, delivery tickets, packing slips, and more.

    How to Use the Sales Order Option 

    It is important to know that Sales Orders are only available in QuickBooks Desktop Premier and QuickBooks Enterprise versions. But if you have one of those versions, you’ll be able to use the sales order tool to save time and manage your inventory more efficiently.

    To turn on the Sales Order feature once you are in QuickBooks, go to the Edit menu and click on Preferences. Select Sales & Customers and then go to the Company Preferences tab. From there you can select the Enable Sales Order checkbox and then click OK.

    Go back to the QuickBooks Home screen or the Customers menu and click on Sales Orders/Create Sales Orders. You can select a customer or customer job from the Customer: Job drop-down, or Add New if your customer is not on the list. Fill in the form with relevant customer and sales information. If you select or add an item you already have in QuickBooks, then the description and amount can be set to automatically populate when you make your selection. Otherwise, you’ll have to take the time to fill in that information yourself.

    You can also create discount items so that when you select them, the discount auto-populates into the Sales Order. To do this go to the QuickBooks Lists Menu and select Item List. Right-click so that an option box opens and click New. In the New Item window, choose the Type drop-down and then click Discount. You can then enter the Item Name or Number, a Description, Sales Tax, and other necessary information for the customer. Then in the Amount or $ area you can enter the discount amount or the percentage of cost savings. Click Save and Close when you are done.

     If you provide estimates to your clients, you can also create sales orders from those estimates. Just find the correct estimate and click Create Sales Order at the top of the estimate form. You can then edit the information if needed before clicking Save & Close.

    QuickBooks has a great visual tutorial for how to create Sales Orders from scratch, so check that out if you get stuck.

    How Sales Order Stages Update Your Inventory Levels

    The other thing to know about creating Sales Orders is that it can update your inventory items’ stock level based on the stage of the Sales Order. This is a great way to keep track of product inventory.

    Stage 1 is the Draft stage. Some users choose to bypass this, but it can be helpful if you want to use a Draft as an estimate sheet for a customer. Creating a draft will not affect your stock record. Stage 2 is Active, where you have assigned stock to an order but it has not been deducted from your stock yet. On an Active Sales Order click Finalize to move to the third stage which is, of course, the Finalized stage or Stage 3. From here you can start fulfilling your order, which will mark the stock as committed but not yet deducted from your total. Stage 4 is Fulfilled, which is when you ship the order and your stock will update to show the reduction in inventory values. This inventory tracking method ensures that you aren’t still counting inventory that is already out of your warehouse and in the shipping process.

    Using the Sales Order Stages is one of the best inventory tracking models and an excellent way to keep an accurate count of your inventory quantities. Using this tool will help you make the most cost-effective business decisions because you will always have an accurate count of your product inventory values.

    female business owner using QuickBooks for sales orders

    Integrating Your e-Commerce Channel with Your Sales Orders

    QuickBooks Commerce allows you to integrate your e-Commerce with QuickBooks so that you have a central hub from which to manage your orders. The way this is managed will be different based on your e-Commerce channel. Whether you deliver your product through a B2C or B2B e-Commerce channel, an Online Marketplace, a Consignment Location, or a Point of Sale System, QuickBooks can integrate with those systems so that your records sync up and your inventory tracking methods stay accurate. 

    QuickBooks has tutorials for each of the above e-Commerce channels so no matter how you’ve set up your sales, it only takes a few steps to integrate these channels with QuickBooks Commerce. And while QuickBooks Commerce may be a better choice for larger businesses, it is a good idea to see what solutions it offers when you are ready to scale up.

    How to Use the Sales Order Fulfillment Worksheet

    QuickBooks provides a Sales Order Fulfillment Worksheet to give you a simplified process for reviewing all aspects of the sales order. To get started, go to the QuickBooks Edit menu and click on Preferences. On the left side, click on Items & Inventory and then go to the Company Preferences tab. Click on the Advanced Inventory Setting button and then go to the Site Operations tab. From there, check the Sales Order Fulfillment Worksheet box. Now you can start managing and fulfilling your sales orders by selecting the Customers menu and then the Sales Order Fulfillment Worksheet.

    The Sales order Fulfillment Worksheet has three tabs, titled Dashboard, Pick, and Pack. On the Dashboard tab, you can see an overview of your sales orders and their statuses. You can also perform actions from the tab, such as Send for Packing or Print Shipping Label. You also have the ability to sort each column within the Dashboard. The Pick and Pack tabs allow you to manage your picklist and your packing orders.

    You can also choose between one of three processes for fulfilling sales orders. The process that is best for you will depend on how big your company is, your sales order volume, and your operations. Your options are: 1. Pick, Pack, and Ship, 2. Pick and Ship, and 3. Ship. Again, QuickBooks has a great visual training page for setting up and managing these workflows so you can find the perfect solution that fits your small business needs.

    When you know how to manage Sales Orders in QuickBooks, keeping your sales records straight is easy. When you need support in managing all your financial statements during tax time, Sound Accounts is here to help.