Your Next Big Idea Might be Just Around the Corner

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9ecd313dc504d5f26b6e48e5a37c8b34

Why Business Owners Need Downtime

Have you ever been working and had a thought and by the time it took you the 5 seconds to get the paper and pin to write down the thought it was gone?  When this happens it is a CLEAR sign to step away and take at least a few minutes of downtime.  Trust me you will be better off for it.

Our minds read and hear so much information every day. It can be hard to sift through it all, let alone remember it.  Time away from the demands of work can give your mind time to rest and rejuvenate. During non-work activities such as, resting, exercising and hobbies your head can have time to clear. One of the ways I take downtime is by taking a morning walk before I start my work day.  It’s during this time that my mind clears and I think of ideas for my business. It could be a new idea for a blog post, how to solve a clients problem or even a great dinner idea for my family.  When I am ready to start my work day, I can start with a clear mind, which usually leads to a productive day.

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Do you want to save time and money in your business?

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Rule #6

THE IMPORTANCE OF USING AN ACCOUNTING SYSTEM

One of the most important factors for a small business’ financial health is to use an accounting system. Accounting systems track revenue, expenses and produce financial statements.  They can save a business owner valuable time and money when compared to the alternatives.

Do you use Excel? While Excel might seem like the simple solution, it really isn’t the best use of your time. Why spend your time using a completely manual process when you could be using an automated one?

Are you a shoebox client? Are you not using any type of method during the year to track income and expenses? Do you just toss your receipts in a box and forget about them until tax time? Do you rely on your tax preparer to sort through your paperwork and determine your income and expenses right before the dreaded tax filing deadline? If this describes you, how do you know the performance of your business without proper and routine tracking of sales?

Your time is the most valuable asset your business has.  Use it wisely to grow your business.

The advantages to using an accounting system are numerous. I touch on some of the main advantages below.

  • Tracking Income 

Entering your financial information into an accounting system will automatically track all income. You will know what customers have paid and what invoices are outstanding. Knowing on a regular basis what amounts are owed to you can help you be proactive in collecting past due amounts.

  • Tracking Expenses

You will know what vendors have been paid and what items are open. Having this information can aid you in paying bills on time and avoiding late fees and penalties.

  • Financial Statements 

An automated financial system allows for financial statements and activity reports to be generated quickly, and accurately. Your financials are critical to assessing the health of your business. If you are a shoebox client, reports are not possible during the year.  As well, if you are using Excel you will need to manually prepare reports.

Having all of your information located nicely within an accounting system can help you save time and money, prepare your taxes and increase your bottom line.  A business can’t truly know their financial outcomes without proper tracking. If you are using Excel or are a shoebox client, I urge you to think about moving to an automated system. Your time is the most valuable asset your business has.  Use it wisely to grow your business.

One final point, as important as having and using an accounting system is, it is equally important to ensure it is managed properly.  If you are unsure of how to use an accounting system or how to accurately account for transactions you should seek professional help.  Too many business owners try to do it themselves and find themselves owing penalties and interest on incorrectly filed sales and income taxes.

If you would like to discuss how to get setup on an accounting system please contact us. We handle system set ups, training and routine review for accuracy.

Copyright 2014 Christi Rains, Alpha Omega Consulting & Bookkeeping, LLC

The number one way to lose your business and self

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Rule#1

THE IMPORTANCE OF FORMING A LEGAL ENTITY 

Q. My business is a Sole Proprietorship. Is this classification significant? 

For the most basic business, such as a hobby, this designation is fine. Unless you use dangerous equipment, sell a product, have high liability or hire employees. But keep in mind, a Sole Proprietorship is not a true legal entity. It does not provide personal liability protection, which means there is no separation between the business and the owner.  If sued, your personal assets can be taken. As well, if business debts cannot be paid with business assets then your personal assets can be taken.  

There is a large misconception in the business community that this entity form is acceptable due to the ease and low cost to form

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Why keep personal and business expenses separate?

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Follow these steps and eliminate reporting headaches!

There are so many reasons to not mingle business and personal bank accounts and transactions.  Whether you are a sole proprietor or have formed an entity, such as LLC or corporation, one of the first steps in forming the business is to set up a business checking account.  This business checking account should only be used for the business. It should not be used for personal expenses or personal deposits.  This applies to credit cards too.

This is something I run into all too often.  It’s one of the first questions I ask a new client and one of the first requests I have before taking over their books. I beg of you, please don’t mix business and personal expenses.

Continue reading

Do you want to save time and money in your business?

Standard

Rule #6

THE IMPORTANCE OF USING AN ACCOUNTING SYSTEM

One of the most important factors for a small business’ financial health is to use an accounting system. Accounting systems track revenue, expenses and produce financial statements.  They can save a business owner valuable time and money when compared to the alternatives.

Do you use Excel? While Excel might seem like the simple solution, it really isn’t the best use of your time. Why spend your time using a completely manual process when you could be using an automated one?

Are you a shoebox client? Are you not using any type of method during the year to track income and expenses? Do you just toss your receipts in a box and forget about them until tax time? Do you rely on your tax preparer to sort through your paperwork and determine your income and expenses right before the dreaded tax filing deadline? If this describes you, how do you know the performance of your business without proper and routine tracking of sales?

Your time is the most valuable asset your business has.  Use it wisely to grow your business.

The advantages to using an accounting system are numerous. I touch on some of the main advantages below.

  • Tracking Income 

Entering your financial information into an accounting system will automatically track all income. You will know what customers have paid and what invoices are outstanding. Knowing on a regular basis what amounts are owed to you can help you be proactive in collecting past due amounts.

  • Tracking Expenses

You will know what vendors have been paid and what items are open. Having this information can aid you in paying bills on time and avoiding late fees and penalties.

  • Financial Statements 

An automated financial system allows for financial statements and activity reports to be generated quickly, and accurately. Your financials are critical to assessing the health of your business. If you are a shoebox client, reports are not possible during the year.  As well, if you are using Excel you will need to manually prepare reports.

Having all of your information located nicely within an accounting system can help you save time and money, prepare your taxes and increase your bottom line.  A business can’t truly know their financial outcomes without proper tracking. If you are using Excel or are a shoebox client, I urge you to think about moving to an automated system. Your time is the most valuable asset your business has.  Use it wisely to grow your business.

One final point, as important as having and using an accounting system is, it is equally important to ensure it is managed properly.  If you are unsure of how to use an accounting system or how to accurately account for transactions you should seek professional help.  Too many business owners try to do it themselves and find themselves owing penalties and interest on incorrectly filed sales and income taxes.

If you would like to discuss how to get setup on an accounting system please contact us. We handle system set ups, training and routine review for accuracy.

Copyright 2014 Christi Rains, Alpha Omega Consulting & Bookkeeping, LLC

Your Next Big Idea Might be Just Around the Corner

Standard

9ecd313dc504d5f26b6e48e5a37c8b34

Why Business Owners Need Downtime

Have you ever been working and had a thought and by the time it took you the 5 seconds to get the paper and pin to write down the thought it was gone?  When this happens it is a CLEAR sign to step away and take at least a few minutes of downtime.  Trust me you will be better off for it.

Our minds read and hear so much information every day. It can be hard to sift through it all, let alone remember it.  Time away from the demands of work can give your mind time to rest and rejuvenate. During non-work activities such as, resting, exercising and hobbies your head can have time to clear. One of the ways I take downtime is by taking a morning walk before I start my work day.  It’s during this time that my mind clears and I think of ideas for my business. It could be a new idea for a blog post, how to solve a clients problem or even a great dinner idea for my family.  When I am ready to start my work day, I can start with a clear mind, which usually leads to a productive day.

Continue reading

The number one way to lose your business and self

Standard

Rule#1

THE IMPORTANCE OF FORMING A LEGAL ENTITY 

Q. My business is a Sole Proprietorship. Is this classification significant? 

For the most basic business, such as a hobby, this designation is fine. Unless you use dangerous equipment, sell a product, have high liability or hire employees. But keep in mind, a Sole Proprietorship is not a true legal entity. It does not provide personal liability protection, which means there is no separation between the business and the owner.  If sued, your personal assets can be taken. As well, if business debts cannot be paid with business assets then your personal assets can be taken.  

There is a large misconception in the business community that this entity form is acceptable due to the ease and low cost to form

Continue reading

Texas Sales Tax Law Simplified

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Every year the sales tax laws become more complicated.  It can be a challenge for a new business owner to determine if they need to charge sales tax on a particular product or service.  The laws vary greatly from state to state and industry to industry.  States are working hard to fill their budget deficits and are looking more and more to sales tax income. Due to this, many states are hiring more sales tax auditors which can lead to compliance issues for companies.  Businesses that get behind on paying sales tax or are remitting sales tax incorrectly can find themselves deep in penalties that for many will force them to close their doors.

There are many oddities to the sales tax law. For instance, in Texas shoe shinning is a taxable service but tattooing and tanning are non- taxable services.  Lawn care is a taxable service but only if your sales income is at a certain level.  Laundry cleaned by a professional is taxable but coin laundry machines are not taxable. It is important to check each service and/or product you sell to determine if you should be collecting sales tax.

Continue reading

Why keep personal and business expenses separate?

Standard

4e260ac719f06653e1874a4734e219d4

Follow these steps and eliminate reporting headaches!

There are so many reasons to not mingle business and personal bank accounts and transactions.  Whether you are a sole proprietor or have formed an entity, such as LLC or corporation, one of the first steps in forming the business is to set up a business checking account.  This business checking account should only be used for the business. It should not be used for personal expenses or personal deposits.  This applies to credit cards too.

This is something I run into all too often.  It’s one of the first questions I ask a new client and one of the first requests I have before taking over their books. I beg of you, please don’t mix business and personal expenses.

Continue reading