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Without a doubt, taxes can be a stressful topic for small business owners. It is something that is not understood by most businesses since it involves technicalities and accounting brilliance, especially when it comes to reducing tax bills. The point is small business owners have budget issues, and that’s the reason they can’t afford to hire expensive bookkeepers or accountants who would look after their financial aspects. This indicates that most business owners are good on their own and have to do their bookkeeping and accounting themselves, along with handling other important business-related affairs.

My Take on Reducing Small Business Tax Bills

There is no denying the fact that tax obligations go hand-in-hand with running a business, and every business—regardless of its size, location or industry—is liable to pay taxes at the end of a brief accounting period or in tax season. This makes it the least favorite subject matter for small business owners or industrialists, but it is also the most important one. Why? Because every business owner is legally responsible for paying taxes or tax bills no matter what. Although reducing tax bills may sound daunting at first, especially for those who are new to it, but once you get down with it and learn specific aspects of business accounting and taxes, then you will have an idea that reducing taxes isn’t an alien job. It can be done with little knowledge and expertise, which means that you don’t always have to hire expensive bookkeepers or accountants for getting the job done right. Check out America's Best Bookkeepers

Undoubtedly, small business owners aim to maximize deductions and tax bills so that they can maximize their annual revenues and profits. This dream can come true if they play sensibly and employ the right tools and industry practices to lower their tax bills for maintaining a healthy financial lifecycle. Plus, smarter tax planning is what is required. So, the small business owners need to find ways to lower their taxable income legitimately, especially if they expect to witness high returns on their efforts rendered instead of reducing their tax bills.

Types of Business Taxes

Moreover, small business owners need to understand that there’re a variety of business taxes like income taxes, employment taxes, sales taxes, excise taxes, etc. that are all required to be dealt with differently. Being an owner of the business, you need to realize your responsibilities on a timely basis to avoid costly penalties, perhaps leading your way to disaster. Why? Because taxes, when dealt in time, can give you peace of mind and fear-less about your business taxes and all.

Set Up Books and Records

Trust me! A casual approach to record or bookkeeping for business can result in financial discrepancies that are hard to cater to in the tax season. The thing is, you can only expect to maximize deductions and reduce tax bills if you have a clear picture of your company’s financial condition. So, you need to develop and integrate an income and expense system that will enable you to handle taxes yourself. Since small business owners are mostly busy in other more important front-end affairs of the business, a bookkeeping and accounting system will allow them to track their records for future business decisions. So, once they have a clear picture of their finances, then they could come up with ways to reduce their small business tax bills.

Contribute To a Retirement Plan

Retirement saving opportunity allows small business owners to shelter their business’s income as it will enable a tax deduction for their contributions. There are many 401K or IRA retirement plans that qualify for tax deductions, which will ultimately help you reduce your tax bills.

Give To Charity

By making donations to non-profit organizations, small business owners can expect to reduce their tax bills up to a great extent. For example, donating your old laptop to a non-profit organization will help the community as a whole, while giving you an incentive to reduce your small business tax burden.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
  1. SBA loans:

SBA stands for Small Business Administration. It provides funds and loans to the small businesses. An individual has to pay back the loan within the period of 7 years. The amount of the interest rate varies according to the income earned by the firm. Usually, small business owners lack in good cash. This firm was created to provide loans to the small shop keepers, food stalls, and many other small businessmen. This firm helped many citizens and entrepreneurs in transforming their businesses. Not every single businessman is rich. Few of them need extra funding despite their own resources. Yet, people cannot trust any other person for their firm. So, they end up running as a sole proprietor.

  1. Pre-sale of products:

An individual starts a business to sell its product. This product can be in the form of talent, skills or any raw product. For money, one needs to pre-sale its product. Set up a good advertisement and sell your products. The sale will engage people in heeding over. It will cast a good impact in the market. Your business will be well known before even starting. And after its launch it will turn out to boom. The businessman can utilize the cash in enhancing business. They can enhance by hiring qualitative people, more office equipment and handsome salary. As soon as you hire more quality products, it will result in good products. The quality labor will help in building good image. Good image will turn into good advertisement. Your work force will invite others to engage in the firm. This is how a good pre-sale of a product will turn out to be.

  1. Angel investor:

Angel investors can be found on the internet easily. They are actually the big business owners who invest an amount to make your business. Their contribution is better said to be angel. Angels help people in their time of need. Where else, these investors help at the time of great depression in a business firm. Their amount may be little or too much. Businessmen need funds, big and small. Their businesses are based on good sales and good investment. The investment done by investors is profitable to them as well. The more the firm will earn the more amounts they will get as a profit. Investing in a business means getting the owner equity and the partnership. Nobody works without profit. So, stop day dreaming that they are helping you without use. Start working on your own. Avoid these loans and investors help. At the end of the day, you are putting in the effort.

  1. Crowd funding:

Crowd-funding means earning online via different contests, projects, etc. This can be accessible via several websites. Many companies upload projects for freelancers and other firms. Complete those projects and earn. Become a part time freelancer. Your fame will lead to be approachable to the more appropriate crowd globally. Become famous once and enjoy the rest of your life. It will take a lot of effort today but it will all worth. One good step will be a good source for business income. Think again and apply for their several websites today. Earn well and live well. Living well is not gifted. The good businessmen were also poor. They worked day and night for their image. After that, they tend to enjoy. Yet, they don’t sit back. They work to enhance their firms more to a good extent. They know their own worth and their own market image. No matter how hard one tries. They cannot sit back and relax because their businesses are well settled. Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Money and financial planning, young hispanic self-employed woman checking bills and doing budget with calculator, computer and papers in fashion design studio
Every business aims to grow; an influx of money helps a business move forward towards its goals. Obtaining a small business loan is a prodigious way to finance the progress and expenses of a business. However, there are certain crucial aspects that one should contemplate before applying for loans.

Getting a business loan is not essentially an intricate process. However, if you are better prepared for it, your chances of approval are heightened. Following the basic steps and electing a lender that focuses on small and medium enterprises can make your business funding quite simple. There are many different lenders who offer small and medium businesses the opportunity to grow by offering them friendly terms on loans. Here are some of the essential steps that must be followed when applying for a business loan.

Small Business Loan – Essential Steps

Create a Sold Business Plan

Whether your business has just appeared on the market or has been around for a while, a solid business plan is important to convince lenders to issue a loan. It states the key aspects of your business and what your business is all about. Your mission and goals must be clearly mentioned in the business plan; this allows the lender to assess the nature and potential of your business. Your business plan must highlight how your company plans to pay back their small business loan in due time with interest.

Many business owners are tempted to skip this step as they consider it to be an unnecessary burden. Don’t make that mistake. Put some effort into noting every facet of your business plan in detail and update it as time goes by.

Spotless Accounting Records

As important as a business plan may be, your accounting records are also an important measure of your financial standing. Lenders will imperiously look into your balance sheets, income statements, cash flows, and other financial records to assess riskiness before offering you a small business loan. Apart from financial sheets, they will also see if the company is making any profits and look at their debt ratios to see how the business has performed in the past.

If something is missing in the records, you have no way of proving that it exists or existed and the loan officer looking at it will not be convinced to hand out a loan to you.

Maintain and Track your Credit Score

With the growth of many online lending options and other means to secure loans, lenders are thinking outside the box to verify the credibility of loan seekers. However, a credit score still remains one of the most crucial aspects in determining the worthiness of a business. A score of 700 plus is considered to be excellent, while 600 plus still offers you plenty of options. Below that, you have limited options and ,depending on the case, a small business loan may be approved.

Some people have no idea what their credit score is because they haven’t bothered to check it in a long time. It can be a big mistake because your credit score is still considered to be the most reliable factor in assessing the riskiness of an individual or a business. Therefore, ensure that your credit score doesn’t go haywire and track it often.

Determine the Use of the Loaned Amount

Disclosing what you will be using the loan amount for may sound like something personal you are not willing to disclose, but it can be very advantageous for the approval of a small business loan. Small businesses do not usually have a market reputation, therefore, lenders might be unsure about your plan of action. Telling them how you plan to use the loaned amount will help them to evaluate the expected profitability of your business, which ultimately means that you are able to pay back the loaned amount. Lenders have a team of experts who are adept at handling a variety of clients with multiple declared purposes for a loan. These experts usually make accurate predictions about the future of a business.

Following the above-mentioned guidelines to obtain a small business loan will increase your chances of approval. It is best to declare honest information about your business in order to ensure that you do not land in any trouble later on.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Close up young woman with calculator counting making notes at home, hand is writes in a notebook. Savings, finances, concept.
For individuals with a non-commerce background, it’s not so easy to identify the differences between bookkeeping and accounting. While you may observe some variation of the ways both accountants and bookkeepers appear related, there are some significant dissimilarities between the two functions and positions. These could have a profound effect on not only the services provided for your business but also the cost that you incur in terms of hiring their services.

Bookkeepers are responsible for handling the records of every day’s financial transactions, literally keeping the books. On the other hand, accountants could hold a further consultative role by providing counseling to the administration along with performing audits and handling financial reports.

Along with the responsibilities that coincide between accountants and bookkeepers, when it comes to qualification, an accountant usually holds degrees and certifications whereas bookkeepers might hold a degree or diploma or none at all.

Bookkeepers vs Accountants

Once you are indulged in searching for financial assistance, the way you outline the search might be further significant in comparison to the findings of your search. If your business is functioning efficiently, hasa visible course towards the next level, and already has an employee that possesses the knowledge of finance, then only a little assistance would be required in terms of bookkeeping. In such circumstances the person in the role of the bookkeeper would add the most value to the business. The requirement is of a person who could concentrate on doing the math and organizing the volume of receipts into a meaningful idea. A knowledgeable bookkeeper would save both time and money by getting their head swiftly around the business structure. In terms of record keeping, scrutinizing, and balancing, the expertise of an accountant would be wasted. The best usage of an accountant’s services would be in making smart purchase decisions or securing better control over the cash flow in order to make the most out of investments.

Shifting Landscapes

It is interesting to know that since the advent of bookkeeping and accounting software, a few constituents of the accounting practices have been accumulated with the bookkeeping practices. For example, bookkeeping software is usually capable of producing financial statements. This capability of bookkeeping further diminishes a few customary boundaries between the practices of accounting and bookkeeping.

Similarities between Bookkeeping and Accounting

Accounting and bookkeeping might seem similar to an inexperienced individual because both accountants and bookkeepers deal with the financials. To adopt any of the field, one must possess fundamental knowledge of accounting. Within smaller organizations, bookkeepers are often hired to manage more accounting practices rather than just record keeping. In small businesses, bookkeepers also categorize and produce reports with the help of financial transactions. While in most circumstances bookkeepers might not possess the formal qualifications essential to perform such tasks, most of the accounting software these days have made classifying financial transactions convenient by remembering financial transactions and generating computerized reports. Similarly, an accountant also performs as a bookkeeper by recording the financial transactions for an organization.

How Do Businesses Figure Out Who They Need?

The debate associated with the comparison of a bookkeeper with an accountant is not easy to resolve for the reason that many businesses are not certain about their requirements. There have been major dissimilarities between a bookkeeper and an accountant and, in specific circumstances, differentiating between the two, in terms of specific business functions are concerned, is not as easy as it seems. More frequently than not, the decision relies on various multiple factors which include the industry to which the business is related, the need of the business to maintain large volume of fixed assets, the volume of inventory, and the number of employees. Once a business has figured out its actual requirement, it will realize whether it needs the services of bookkeeper or accountant. Generally bookkeepers are perfect in terms of maintaining expenditures however hiring intermittent assistance from an accountant would assure an analytical overview of the performance of the business.

Final Note

Few organizations learn to manage their finances on their own. Furthermore, few choose to employ a professional so the administration can concentrate over the other functions of the business. No matter what option one selects, making investments in the business financials is helpful in assisting with the growth of the business.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Business people using pen,tablet,notebook are planning a marketing plan to improve the quality of their sales in the future.
The management and recording of financial documents and records can prove to be a challenge, especially if it is not done in an organized and efficient manner. When they are in paper form, there is a risk of losing them. Although with some cloud storage services, major security issues are at stake as bookkeeping records can fall prey to malicious viruses and dangerous hackers.

For effective business bookkeeping and maximum security, make sure that you use the following 9 tips and tricks.

1. Use Accounting/Bookkeeping Software

Although you can handle all of your documents in paper form, going paperless through cloud-based accounting software will enable you to manage and record your bookkeeping documents more efficiently.

The use of accounting/bookkeeping software enables users to handle all of the basics of bookkeeping, providing easy-to-use management tools that help in effective organization and improved security. Vital templates for check printing, deposit slips, business records, and invoices are part of the package that come with the software.

Another benefit that accounting software provides is the ease of accessibility. Once you have all of your important data on the software, you can access it from anywhere. This is because cloud-based software has applications that can be used on a smartphone, providing easy access to the records. 

2. Maintain a Chart of Accounts

Small businesses have to maintain a ‘chart of accounts’ which is a list of accounts and bookkeeping records that help in categorizing all financial transactions that take place in your business. You may own a number of different titles, depending on the type of processes taking place in your business. There are 5 types of business accounts that are commonly found:

  1. Liabilities
  2. Assets
  3. Owners’ Equity
  4. Income
  5. Expenses

  3. Practice Diligence with Tax Forms

If your small business has paid contractors and employees, it is important to stay attentive towards the tax forms that your business is preparing.  An important factor that you have to consider for your small business is that you have to make sure that the employees working in your firm have the forms they need at the required time so that they do not have to face penalties or interest. Make sure that you set aside an ample amount of cash to cover all of the payroll taxes that will be applicable to the wages of your employees.

4. Do Not Combine Business and Personal Finances

One of the most important bookkeeping tips you must practice is ensuring that your personal and business transactions are not combined in any way. Your business is a viable entity and you have to treat it that way. Combining your personal finances with the expenditure of the business will make tracking in the organization much harder and it will be much more difficult to track records. Always ensure that you have a different checking account and separate credit cards for your small business and personal life to avoid confusion and ensure effective organization, saving you both time and money.

5. Outsource your Bookkeeping Needs

Business owners have an option of outsourcing their bookkeeping needs. This is especially helpful for small business owners who are running a business and playing the role of a bookkeeper themselves. This not only divides the tasks and responsibilities while lowering the burden, but also enables you to accommodate the time into something else that is beneficial to your business.

Outsourcing a bookkeeper is cost-effective and accurate. Secondly, instead of spending money on training a fresh bookkeeper, an experienced outsourced bookkeeper will provide you effective bookkeeping straight up.

6. Contact Professionals

When we consider bookkeeping for a small business, there is a big chance that things can go wrong. In certain situations, the smartest decision is to contact a professional. Bookkeeping and accounting experts will help you in setting up your bookkeeping system in a way that errors and mistakes will be minimized. At times, they might prove to be costly, but mistakes can be a major damage to the business so they are a wise investment.

6. Practice Daily and Weekly Reviews

For a small business, it is not sufficient to check your bookkeeping records on a monthly basis. In order to stay updated on any changes going on in your business, you have to keep a track of your records on a daily and weekly basis. Being updated on a regular basis will also enable you to keep track of any current invoices, see all expenses, and understand your cash flow.

8. Save as Much Paperwork as Possible

Paperwork has a higher chance of falling prey to disastrous events. This can affect a business very negatively because, in case you have to prove your tax filings, your business will not have any proof. Alongside, cloud-based software enables you to stay more organized and keep important bookkeeping documents safe.

9. Consider Profitable Deductions

Tax deductions can majorly benefit your small business. Effective business owners have a habit of maintaining proper bookkeeping records in order to ensure that you get the most out of all tax deductions, enabling you to invest that money somewhere else.


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Cloud service icon with options and devices
Small business owners who have recently stepped into the marketplace, which is raging with cut-throat competition, are actively seeking ways to improve their accounting methods to achieve a stronger footing. Technology has made the lives of many giants, like Walmart and JC Penny, effortless and convenient. Not only have they improved their vendor and distributor relationships using ERPs such as SAP and Oracle, but they have also attained greater accessibility to their business operations world-wide. This kind of accessibility is useful in order to provide consistent service to customers throughout the world. For small businesses, it is therefore essential to get in line with these giants in order to remain competitive. Cloud-based accounting tools, such as QuickBooks, can bring a few of the benefits that these big organizations enjoy.

1. Centralized Database

One of the most important outcomes of using cloud-based accounting tools is the centralization of data across the organization. This enables small business owners to keep track of operations at all times. Real-time updates are available on the go. Not only does this centralization help with being up to date, but data or any significant information may be procured easily from anywhere around the world through a smartphone application. This reduces the effort of having to be present in the office for all important updates around the clock. You have your workflows and statistics accessible for monitoring, even while on a family vacation in Hawaii!

2. Improved Relationships with Vendors and Distributors

Cloud-based accounting tools leverage the opportunity to improve relationships with vendors and distributors. Failing to settle vendor obligations can lead to a delay of services from the supplier’s end. This may eventually result in lower customer satisfaction if orders are not processed well in time. Hence, keeping both entities happy and satisfied is of critical importance, especially for small business owners as they have fewer alternatives available. Moreover, switching costs may be higher for small business owners if any of their suppliers decide to discontinue service. Unhappy customers may as well be problematic, provided the existing competition in the market and the dire need to survive.

Cloud-based accounting tools enable the settling of invoices as well as making payments through the online portal accessible to both entities involved in the transaction. Moreover, with this real-time collaboration between stakeholders, communication is quick, two-way, and more efficient. Late payments can no longer be backed by irrelevant excuses – ‘I failed to keep track of your payment deadline owing to my busy work schedule’.

 3. Paperless and Eco-Friendly Environment

With the help of cloud-based accounting tools such as QuickBooks, bookkeeping has become paperless. For small business owners, the need to maintain accounting records in paper form seems like a hectic job. Traditional bookkeeping became obsolete centuries ago. Keeping paperwork alive means adding to the workload. With a little extra cost, the workflow can be automated using cloud-based accounting tools that are both eco-friendly and time-saving.

Moreover, this automation leads to reduced manual errors and risk of losing data. Losing a vendor’s invoice can turn out to be quite detrimental to any business – small or big. Cloud-based accounting tools ensure a secure digital space for all of your useful business data.  Cutting down on the use of paper means lesser deforestation and a greener, cleaner air to breathe. Who’d have thought automation through cloud-based accounting tools could lead to higher levels of oxygen in the environment.

Conclusion

Cloud-based accounting tools can bring about these aforementioned advantages to small businesses and help with streamlining various accounting activities in an efficient and cost-saving manner. This type of efficiency allows small businesses to grow and secure a standing in the market alongside big organizations.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

Man using computer laptop in flower shop
For a small business, it is critically important to have a strong business credit. Its significance is due to two reasons. One is that it is helpful in maintaining a separate personal and business credit history, secondly, it is helpful in building a strong credit score. Strong credit scores have various benefits for a small business. A strong business credit score is helpful in securing better interest rates and having better trade relations with valuable suppliers. Lending money or getting more credit to grow your small business becomes much easier due to strong business credit. 

Let’s discuss the ways by which you can build business credit for a small business.

Mapping of the business

The first ever step in building business credit is to establish your small business. Building business credit is a dream without establishing your business. Just opening a business does not mean that you are now in the main streamline of the business world. Following are the necessary elements to a mainstream business.

  • Obtain an EIN for your small business. EIN is a social security number used for filing federal taxes and for opening the business account.
  • Obtain a phone number and get it enlisted in the directory so that it can be found on search. A mobile number, landline number or VoIP can be used for a small business. This number should be on the legal name of the small business.
  • Open your bank account. This account number should be opened in the legal name of the small business. All transactions and bill payments for the business should be done through this business account.

A good relationship with suppliers and vendors

A solid line of credit with suppliers and vendors is an asset to your small business. Establish and maintain a pleasant relationship with them. Having to prepay for things can be avoided by building a better relationship with vendors. A simple method for building a positive credit history is to build a line of credit with three to five suppliers or establish payment terms of net thirty days. Ask this supplier to report the payment history of your small business to credit reporting agencies.

Timely payments

Timely payments have a very positive and amazing effect on your credit profile.  Late payments badly affect your image. Timely payments of all bills depict that you are a reliable business owner and you have enough money to pay on time. Moreover, you can pay off debts timely. Vendors, lenders, and creditors don’t hesitate to build any kind of contract with you if you have a history of paying on time.

Business credit card

Open at least one business credit card. More than one business credit card is also recommended, but use them cautiously and avoid overspending. Preferably, the business credit card should be opened with a company which reports to credit card reporting agencies. These companies are beneficial for establishing credit.

Incorporate your small business

The small business should get incorporated to separate legally business and an owner’s personal profile. Incorporation can be done either by adding Inc or LLC. This is a legal way for separating personal credit history from that of the business. And, ultimately helpful in establishing and building business credit for your small business.

Separation of personal and business expenses and finances

Business expenses should not be paid from your personal credit cards and personal bills should not be paid from the business accounts. Both credit profiles should be clearly separated. This will not only help to build business credit, but also make payment of taxes easy and comfortable.

Monitoring of small business credit

Credit card statements should be regularly monitored. Any error should be reported to credit reporting agencies. About 25% small business owners have reported errors in their credit reports.

Conclusion

Building a business credit for your small business is key to further progress and growth.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

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Wooden cubes with word "Tax" on dollar bills. Isolated on white. Business concept.
Circumnavigating the tax season can prove rough for all companies; nevertheless, small businesses become very vulnerable when we talk about dissecting the issues regarding tax and making optimal decisions regarding the financial health of the company. The time to think about tax season is not at the start of the year, it is throughout the year. The following five strategies will help numerous small businesses plan for a very simple tax season.

 

  1. Invest In Your Retirement Now

If you are a small business owner, you need to create a retirement plan that takes complete advantage of the tax deferral rules in order to maximize your tax savings now and all the retirement savings for later. Rather than trying to tackle all of the various ins and outs of setting up your retirement plan on your own, it is advised that you consult a professional in this field. There are various options available which you could choose from. Let a professional make this choice for you, not only will they help you with your business finances but with your personal finances as well.

 

  1. Make Balancing Taxes Your Priority

Traditional tax planning is comprised of having to accelerate the deductions and the credits. This will occur alongside deferring the income. Numerous taxpayers are “cash taxpayers”, which means that the users get to deduct the expenses when they are all paid and must declare the income once the payment is received. Thus, expediting the expense payments whilst deferring the income payments might improve your current year’s tax position. You need to bear in mind that the inverse also rings true. If the business is anticipating a significant revenue in 2018, it is wise that you collect the income this year and furthermore delay the expenses until the year 2018.

 

  1. Find Silver Lining in Loss as Well

Numerous small businesses finish off with a net operating loss during the initial years of the business operation. The net operating loss leads to a tax deduction bigger than the taxable income, which mostly occurs when all of the various business expenses exceed the earnings. Even though this appears to be very bad news, NOLs (Net Operatin Loss) might be used to recuperate all of the past tax payments and reduce the tax payments in the future. NOLs can be used to create tax relief by applying the loss to the payments and receiving a credit by applying the net loss to the future income tax. The rules will vary based on the business; therefore, understanding how to work them will have a huge impact.

 

  1. Understanding the Taxable vs the Nontaxable Fringe Benefits

All fringe benefits, for instance: a company car and subsidized meals along with insurance, is an amazing way to pay for all of the services along with decorating an even more appealing employee package. Nevertheless, all of these various fringe benefits are taxable most of the time. Having an in-depth knowledge of which fringe benefits lie outside of the taxable demesne might ease the tax burden each year. When small businesses appreciates the benefits, you will also be able to save money on the payroll taxes. The tax rules for every user are somewhat different, therefore it is important to select the correct fringe benefits for your company.

 

  1. Invest in the Counsel to Benefit Small Business

Planning all of your taxes should never be an end of the year scramble. As an alternative, it should involve a reliable and yearlong conversation with a tax lawyer or a professional accountant. It is better for the continued health of the business to work with a professional who has been in the industry for a long period of time who also knows the ins and outs of the industry. You will also save a huge amount of money when you work with a professional.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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Doing business in other states is known as a foreign qualification. It can actually be quite confusing. It may sound like an international concept, but “foreign” doesn’t mean anything outside of the United States when it comes to U.S. corporations and limited liability companies (LLCs). It’s really about operating domestically in the U.S., but outside of the state in which you incorporated your business.

What is a Foreign Qualification?

Foreign qualifying is simply the registration of doing business in a state other than the one in which you incorporated. That’s because companies and LLCs are considered domestic only in their state of incorporation.

Foreign Qualification Process and Requirements

When you foreign qualify a business, you register for a Certificate of Authority in the state(s) where your company will do business and pay compulsory state fees. This informs the state that your company is conducting business within its limitations. If your business enlarges into new states and you need to foreign qualify, these initial and ongoing fees should be considered a required part of doing business.

Do you need to foreign qualify?

If you are presently evaluating whether to incorporate in a state other than the one where you are located (your home state), you should consider whether you may need to foreign qualify in your home state. There are many factors used in determining the needs of foreign qualify. While different states have different criteria for conducting business, consider the following:

1.    Does your company have a physical presence in the state?

2.    Does your company have workers in the state?

3.    Does your company receive orders within the state?

4.    Does your company have a bank account in the state?

If you answered yes to any of these statements, you will most likely need to foreign qualify your business in the state. If you’re still not sure if you need to foreign qualify, you may want to get the advice of a lawyer.

Consequences of not foreign qualifying

State laws require foreign corporations and LLCs doing business within their borders to foreign qualify and the penalties for not doing so outweigh the costs:

o You may lose access to that state’s court system

o You may face fines, penalties, and back taxes 

Foreign qualified or incorporate in every state?

An alternative to foreign qualifying is to incorporate your business or form your LLC in the other state(s) in which you plan to do business. The primary difference is that when you incorporate or form your LLC in multiple states, your company becomes domestic in each of those states, thus creating separate entities. Consider the following in making your decision:

a)   Increased corporate formalities: For corporations, the increase in corporate formalities is a big hindrance. Corporate procedures include drafting and maintaining regulations, issuing stock, and recording all stock transfers. Also holding initial and then annual meetings of directors and shareholders in addition to keeping minutes of all director and shareholder meetings with the corporate records. LLCs do not face the widespread regulations imposed on corporations.

b)   Separate owners and management: When you create a distinct corporation in each state, each has its own stock, shareholders, directors, and officers. Even if they are the same people for each, the formalities apply for each domestic corporation, greatly increasing the annual record-keeping requirements.

c)    One company versus separate companies: When you foreign qualify, only one corporation or LLC exists. For corporations, irrespective of the number of states in which it foreign qualifies, it needs only one set of statutes, stock, shareholders, directors, and officers. Bookkeeping for initial and annual meetings of directors and shareholders happens only once.

d)   Separation of liability between businesses. Forming a new corporation or LLC in each state provides liability separation. If you have foreign qualified in each state, only one corporation or LLC exists, so there is no separation of liabilities.

Conclusion

Although each foreign qualification comes with filing and/or annual fees, additional laws to become familiar with, and added paperwork, you should never overlook your business’s legal obligation to foreign qualify.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

QuickBooks


QuickBooks has proven to be a useful invention in the discipline of accounting and bookkeeping, especially for incumbents and small businesses. Despite the market being flooded by many similar accounting software, such as Xero, Wave, FreshBooks etc., QuickBooks has taken the lead by transcending the competition. It has been the most favorable among small business owners. It’s several versions are catering to multiple business needs that other competing software lack to date. Its transcendence in the market for serving small businesses are attributed to the following reasons.

Diversity & Flexibility

QuickBooks is available in different versions allowing for greater diversity in serving small businesses. Small business owners can choose from an array of versions depending on their unique business needs and specifications. For instance, QuickBooks Pro, QuickBooks Online Plus, QuickBooks Mac, QuickBooks Hosting, QuickBooks Premier Hosting and the sort. Each one comes with a unique set of features to enable businesses to choose the one that fits best with their business needs. The various versions may be purchased according to one’s budget as well, allowing for even more flexibility. Hence, QuickBooks leads the competition through flexibility in pricing and features.

User Friendly

Another reason for this market transcendence is the user friendly interface that it comes with, allowing for easy access and use within the business. Employees working on a legacy system are generally more resistant to change. Traditional bookkeeping has been popularly replaced by accounting software which may be a source of intimidation for employees at work. However, QuickBooks helps with the initial phase of using the software step-by-step and also extends the option to seek professional help, if need be.

Compatibility

QuickBooks offers a compatible interface that may be integrated with multiple vertical market applications easily and without much trouble. This superior compatibility helps with aligning and streamlining every single process within the organization and allows for savings in terms of cost, time and effort. Automation sounds like a brilliant idea when it comes to accounting, but automation to this extent is no less than a miracle for small businesses.

Customization

In addition to the above reasons, QuickBooks has been successfully outperforming the competition due to its ability to customize almost everything related to accounting and bookkeeping. One can customize a chart of accounts to their specific business needs, customize invoices, sale receipts, and estimates. You name it and QuickBooks has it covered! It sure is a one-stop solution for all your tedious accounting hustles.

Simplification of Tasks

QuickBooks has been an innovation in the market to help serve small business needs related to complicated and enervating accounting procedures and activities. Not only has it provided a complete and sorted package for A to Z accounting but it has helped with simplifying complex spreadsheets, returns filling, reconciling, invoicing, and financial reporting tasks throughout organizations, especially for small businesses.

Unlimited Features

QuickBooks has also taken over full responsibility for performing all of the accounting tasks with the provision of its various features. It manages cash flows, invoicing, billing, receivables and payables, employee performance, bank transactions, check printing, online banking, emails, payroll as well as financial reporting. Other features include access to its online version from any and all internet-enabled devices. This is particularly useful for small businesses that are operated remotely.

Business Tracking

Another one of the many reasons why QuickBooks has led the market competition is the streamlining and automation that it has facilitated for small businesses. With its use, business owners have been empowered as they can now track each and every business transaction and workflow hassle-free and in a seamless manner. This has enabled a transparent work environment for small business owners.

Conclusion

Therefore, based on the numerous reasons identified above, QuickBooks has remained victorious in establishing a position for itself in the market – a position that transcends that of any competitor serving small businesses.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.