Why You Should Take Your Profits First

Most people prepare a budget by estimating sales for the year and then trying to cut down expenses as much as possible or by simply taking the prior year actual figures and adding 2% for inflation. This approach may work well for some, but there is a different mindset I encourage business owners to adopt when creating a budget. Consider taking your profits first and then working backwards to determine how much in expenses you anticipate which will ultimately determine how much in sales are required to meet your goals.

Top 5 Cloud Based Accounting Solutions to Streamline your Business

Cloud based technology has eliminated a majority of the time consuming tasks previously associated with bookkeeping. The automation of bookkeeping services has allowed me to focus on providing value added services to my clients such as budgeting, forecasting, and advisory services. Here is a list of my favorite cloud based services that have saved me and my clients from hours of manual data entry

Could your Small Business be in Violation of a Labor Law?

There are two government organizations that most small business owners fear - the IRS and the Department of Labor. The regulations are extensive and most business owners do not have the knowledge or time available to commit to fully understanding how all the regulations may impact their business. The NH Department of Labor hosts free seminars all across New Hampshire every Spring to help educate employers on labor laws. I was fortunate to attend one of these seminars earlier this month and Iā€™d like to share with you the top ten labor violations in NH as presented at this seminar

The Importance of a Bank Reconciliation

A bank reconciliation compares your record of transactions and balances to your monthly bank statement.  I've encountered many small business owners who do not perform a monthly bank reconciliation and instead operate their business based on the funds available in their bank account.  Proper reconciliations will ensure that you are getting paid and paying vendors promptly which will make cash flow management easier.

Independent Contractor or Employee?

It is critical for small businesses to appropriately classify a worker's employment status for tax reporting purposes.   Should employers incorrectly define a worker as an independent contractor, they may find themselves liable for past taxes including FICA and federal unemployment tax and any associated penalties and interest.  This article defines the criteria necessary to assess the appropriate classification of your emloyees.  

Why a Bookkeeper is not Enough

"Cash is King" which is why the cash flow statement is vital to a successful small business.  You may hire a bookkeeper to record where all of the cash is earned and spent for your business.  This bookkeeper may even provide a generic profit and loss statement or balance sheet produced from a canned report in Quickbooks or Peachtree.  But how do you know the information is accurate?  What type of benchmark should you use to determine if the numbers in these reports are good or bad?  How do you even read this type of statement?