by Sarah | Feb 13, 2025 | Bookkeeping Basics
What does the month of love and financial clarity have in common? Like any great relationship, your numbers need attention, care, and regular check-ins. If you’ve been avoiding your books or treating budgeting like a bad relationship, it’s time to shift your mindset and confidently embrace your numbers!
Building a strong, healthy relationship with your finances will help you reduce stress, make smarter business decisions, and create long-term success. How can you start loving your numbers this month?
Falling in Love with Your Finances: Why It Matters
Financial clarity does not come from glancing at your numbers once a year when tax season rolls around. Your numbers tell the story of your business. You can learn what is working, what is not, and what changes you need to make to grow your business sustainably.
A strong understanding of your financials can help you:
- Avoid surprise expenses and cash flow issues.
- Make informed business decisions based on data (not guesswork!)
- Plan for future investments in your business.
- Allows you to focus on growth and reduce financial stress.
In other words, when you love your numbers, they’ll love you back!
Keeping the Romance Alive: The Importance of Regular Financial Check-Ins
Just as a healthy relationship requires communication, so do your business finances. By maintaining a regular check-in schedule, you can proactively stay on track and catch potential issues before they become big problems, giving you a sense of control and confidence.
How to Maintain a Strong Connection with Your Finances:
Set a Money Date – Schedule weekly or monthly check-ins to review your budget, income, and expenses. Make it a non-negotiable habit!
Review Financial Reports – Regularly review all of your financial reports.
Track Outstanding Invoices – Ensure you’re getting paid on time and follow up on any overdue receivables.
Assess Business Goals – Are you on track with your revenue and expense targets? If not, what adjustments can you make?
You’ll build a healthy, profitable business by checking in with your books—without financial surprises!
The Most Important Numbers to Track: Love The One You Are With
If you want to love your numbers, you need to understand them. Here are the key financial metrics every business owner should track:
1. Revenue (Total Income)
The total money your business brings in before expenses is known as revenue. Tracking revenue trends helps you:
- Set realistic income goals
- Identify peak and slow seasons
- Make informed pricing and sales decisions
2. Profit
Profit = Revenue – Expenses
Your profit margin shows how much money your business keeps after expenses. If your revenue is high but profit is low, it’s a sign you might need to adjust spending.
3. Cash Flow
Cash flow measures the money moving into and out of your business. A positive cash flow means you have more money coming in than going out, which is a key sign of financial health!
4. Expenses & Overhead
Track your monthly spending:
- Fixed expenses – costs that remain the same over time. (rent, software, salaries)
- Variable expenses – costs that fluctuate monthly. (marketing, supplies, client services)
- Unnecessary spending – costs that are not essential to your basic needs. (subscriptions, underutilized tools)
5. Accounts Receivable (Outstanding Invoices)
When clients do not pay their invoices on time, potential cash flow is sitting in limbo. Proactively following up with unpaid invoices ensures you get paid and lessens financial strain.
6. Budget Review
Are you following your budget, under budget, or overspending? Compare your projected spending with the actual monthly expenses. You can then identify areas where you may need to make corrections.
7. Taxes & Savings
Nobody likes a surprise tax bill! Set aside money each month to cover estimated taxes and build an emergency fund for unexpected costs.
Budgeting: Your Business’s Love Language
A budget doesn’t mean restricting spending. It gives your business direction and stability, which leads to financial clarity.
Instead of viewing budgeting as drudgery, consider it an act of love that ensures your business stays strong and financially healthy.
A firm budget helps you:
- Set realistic financial goals
- Prevent overspending
- Allocate money for business growth (marketing, hiring, training)
- Avoid end-of-the-month financial stress
If you don’t have a budget yet, now’s the perfect time to create one!
Recognize Business Finance Red Flags
If you’re only looking at your numbers when it’s tax season (or when something goes wrong), your relationship with your finances might need some work!
Warning signs your finances need attention:
- Avoiding financial reports because they stress you out
- Not knowing where your money is going each month
- Cash flow issues catching you by surprise
- Overdue invoices piling up
- Not having a budget or financial plan
The good news? It’s never too late to rebuild a healthy relationship with your business finances!
Show Your Numbers Some Love This Month!
Ready to build a strong, stress-free relationship with your business finances? Here’s your action plan:
- Select an accounting system to maintain your records.
- Schedule a money date every month to review your numbers.
- Track the key financial metrics listed above.
When you take control of your numbers, you gain confidence, clarity, and the power to grow your business efficiently. This empowerment is a love story worth investing in!
Loving your numbers doesn’t mean you have to handle them alone!
At SAP Virtual Resources LLC, we help business owners achieve financial clarity by:
- Staying on top of bookkeeping without being overwhelmed.
- Creating and managing budgets for long-term success.
- Tracking critical financial metrics and cash flow.
- Ensuring financial records are up-to-date and tax-ready.
We make it easy for you to understand and manage your business finances so that you can focus on what you do best. Contact me to learn how we can help you achieve financial clarity.
by Sarah | Jan 10, 2025 | Tax, Uncategorized
By opting for a tax review before filing your taxes this year, you can significantly reduce the anxiety that often accompanies tax time. Maybe ENJOY is a stretch, but you will feel better than you usually feel at tax time. The stress of unorganized books, juggling deadlines, and the possibility of making a costly mistake can be overwhelming, even for the most confident business owners.
As the owner of SAP Virtual Resources, LLC, I have seen how this proactive step can save time, money, and stress for busy entrepreneurs.
The Value of a Professional Review
Spot Errors Before the IRS
Even the most meticulous business owner can make bookkeeping mistakes. Common mistakes like missed deductions, miscategorized expenses, or duplicate entries may not be obvious when you are in the thick of tax preparation while continuing your daily business activities. They may not seem significant, but they can lead to larger problems.
An accountant’s trained eye can catch these and other mistakes. A tax review can ensure your financials are accurate and compliant with IRS regulations, reducing your chances of an audit or incurring penalties.
Expert Advice on Deductions and Credits
The complex and ever-changing tax laws require attention to detail. It is easy to overlook valuable deductions and credits that can apply to your business. There are several small business tax credits that you may qualify to use.
An accountant who offers a tax review stays current on the latest tax regulations to help you take advantage of all opportunities. They can help you with your current year’s taxes and help you implement new strategies for the following year.
Save Time and Reduce Stress
Get Back to Running Your Business
Once your information is ready, you can submit it for a professional tax review. This allows you to refocus on running your business, knowing that your books are in the capable hands of an expert. It’s time to do what you do best with the peace of mind that comes from professional oversight.
Prevent Costly Mistakes
Significant financial consequences can be the result of minor bookkeeping issues. A misplaced decimal point or a forgotten receipt can make a difference. Without a tax review, these issues may go unnoticed, leading to penalties and additional stress. An accountant can address many problems before they escalate, potentially saving you from these consequences.
Prepare for Growth and Audits
Insights into Business Health
A tax review helps you understand your business’s financial health. An accountant can identify business trends, cash flow issues, or areas where you can improve profitability. This information can help you make sound decisions about the future of your business.
Audit Readiness
Any business owner feels chills at the thought of an IRS audit. Being prepared for the possibility is priceless. An accountant can verify that your records are complete, accurate, and defensible, reducing the likelihood of complications if you receive an audit notification.
Tailored Advice for Your Business
Custom Tax Strategies
Your business is unique, and cookie-cutter advice doesn’t always work. After a tax review, an accountant can provide you with a tailored tax strategy based on your industry, goals, and financial position. Their expertise can help you plan retirement contributions, time purchases of business assets, or navigate unique deductions.
Invest With Confidence
A professional tax review is an investment in your business’s financial health and your peace of mind. The clear benefits include saving time, reducing stress, and a business set for future success.
Be proactive and make tax time stress-free. (You may even ENJOY it!) Contact me to discuss a tax review today.
by Sarah | Nov 15, 2024 | Business Tools
Now is when many business owners think about holiday giving to their team and community. A thoughtful approach to generosity can bring warmth and happiness to your business, employees, and the local community.
There are three areas to consider: charitable donations, employee gifts, and community partnerships.
Creating Positive Change Through Charitable Giving
We naturally feel good about supporting a charitable cause that is dear to us. There is also a strategic side for business owners who approach holiday giving thoughtfully. Consider the following:
Select Tax-Deductible Organizations
Some contributions are tax-deductible when donating to an organization with a 501(c)(3) status. Maintain records or receipts of the donation for accounting and tax documentation.
Align Contributions with Company Values
Selecting causes that resonate with your mission will add depth to your brand. When a company supports local schools, health and environmental initiatives, it strengthens its reputation and fosters a sense of unity and shared mission among its employees.
Set a Budget
A dedicated budget for charitable giving ensures donations are organized and manageable. Consider designating a percentage of your annual revenue to stay within budget.
Employee Appreciation Without Tax Complications
Appreciation for your employees shouldn’t be limited to the holidays. Holiday giving can boost the morale of your team. Here is how to manage holiday gifting effectively:
Understand what is taxable and non-taxable to employees.
Generally, cash bonuses, gift cards, and large-value gifts are taxable income for employees. However, some benefits may not be taxable.
Think beyond material gifts.
Consider giving a benefit that offers value throughout the year. Wellness incentives or professional development opportunities are practical and may be non-taxable.
Stay on top of compliance.
When you gift your employees, be careful not to choose something that may be taxable. Your gift should benefit them, and you also need to be sure it meets your budget constraints.
Foster Community Partnerships
Local businesses welcome the support of their community, especially during the holiday season. Your support of local businesses helps the communities’ economy and creates valuable connections. It also benefits your business with increased visibility and a positive reputation.
Partnerships with Local Vendors
By using local vendors for holiday events or gifts, you can strengthen community ties and your commitment to supporting small businesses. This is a win-win for the employees and your regional partners.
Carefully Track Expenses
As with everything in your business, expense tracking is essential. If your expenses directly serve your business, they can often be categorized as marketing expenses and may be tax-deductible. Examples of partnerships might include hosting a holiday market or community event.
Encourage Employees to Shop Locally
Offering discounts to local vendors and shops is a simple and effective way to help your employees and the community.
Think about how your holiday giving can genuinely matter to your employees and the local community. You can remain financially savvy while supporting charities and strengthening community bonds.
Before making a final decision on holiday gifting, be sure to consult with your tax accountant.
Have you decided to hire a bookkeeper as part of your business’ New Year’s Resolution? Schedule a call, and let’s chat to determine your needs.
by Sarah | Oct 14, 2024 | Business Tools
Finding the right financial tools for your unique business can be overwhelming. With so many options available, trying the latest flashy accounting software or payroll system can be tempting. However, making the right decisions for your specific needs is crucial to keeping accurate records and ensuring financial stability.
I rely on proven software for day-to-day accounting functions that I’ve found most effective across various businesses. The software must be flexible enough to manage your financials efficiently, giving you confidence that you’re in good hands.
The Pitfalls of Adopting New Tools without a Strategy
I’ve seen businesses purchase software or systems simply because they’re trendy. Shiny object syndrome is real! However, it’s important to remember that the latest trend isn’t always the best fit for your business. Unfortunately, this can lead to several challenges, especially if it does not align with the core accounting platform you’re already using.
- Wasted Investments: It’s easy to overinvest in solutions that don’t suit your business.
- Lost Productivity: Learning and integrating new systems takes time from other tasks.
- Missed Opportunity: Implementing new systems consumes valuable resources.
Why One Size Doesn’t Fit All
Every business has distinct financial goals and needs. Some may need expense tracking, inventory management, project-based accounting, or mobile accessibility. Choosing payroll and accounting software that aligns with your goals and needs while staying within budget is essential. The right software can meet your current needs and work for your future growth.
- Streamlined Processes: Your software must efficiently handle daily tasks.
- Different Needs: Every business has specific goals that require different solutions.
- Cost-Effective Solutions: Use software that offers value for your unique business.
Finding the Right System for Your Unique Business
Choosing suitable financial systems isn’t just about finding the newest tool. It’s about making informed decisions that will help you stay organized and save money. Evaluate your needs and find solutions that integrate with your existing accounting software while offering the flexibility you need for payroll management.
Here are some of the factors I consider when recommending options:
- Growth Stages: Find a system that can grow as your business grows.
- Compliance and Tax Filing: Your systems should maintain complete and accurate records.
- Ease of Integration: Data should flow accurately between systems, giving you a clear financial picture.
Choosing the right financial solutions for your unique business isn’t about chasing the latest trends—it’s about selecting tools that work for you and your specific needs. The accounting software I recommend for daily operations is reliable, efficient, and secure, providing a foundation for financial management. Payroll services should grow with your business, giving you the security and stability you need.
Find a trusted advisor to help you choose the right software programs. An advisor will help you avoid costly mistakes and ensure that the systems you use integrate perfectly to meet your accounting needs. With the right guidance, you can focus on the activities to grow your business with confidence and peace of mind.
I’m ready to help you with your bookkeeping needs. Let’s connect.
Schedule a call, and let’s chat.
by Sarah | Sep 13, 2024 | Bookkeeping Basics
Filing an annual report with your Secretary of State is a straightforward task. Your business must file many reports, including income and payroll taxes, as well as federal and state taxes. However, an annual report is often overlooked.
Many states require filing an annual report with the Secretary of State. Although it may seem like a minor administrative task, not filing can have significant consequences.
What is an Annual Report?
In most states, the Secretary of State requires filing an annual report. The information required provides up-to-date information about your company. It is the state’s way of ensuring you are still operating and legally maintaining everything.
Why does this matter? Keeping the state informed about your business’s status helps you stay in good graces. Filing your annual report on time is a great start.
Timing is Everything
When it comes to filing deadlines, every state has its own rules. Some states require the report to be filed on the anniversary of your business’s formation, while others have a set date every year. Missing the deadline can cost you. It’s essential to know your state’s filing schedule. Check your Secretary of State’s website. You can find a list of all states in this report.
What Happens if You Don’t File?
I get it—life happens. The annual report deadline might slip through the cracks. But missing the filing date can lead to more than just a slap on the wrist:
Consider this the state’s way of reminding you to file with a price tag attached. Late fees are an unnecessary expense you could easily avoid.
Securing loans, permits, or contracts may be challenging when one loses one’s good standing with the state, significantly hindering growth.
- Dissolution of Your Business
In extreme cases, the state can dissolve your business without your knowledge. Imagine discovering that your company no longer exists. Reinstating a dissolved business is a long, frustrating, and expensive process. It’s much easier to stay compliant from the get-go.
The Benefits of Staying Up-to-Date
Here is the positive side of being proactive with your annual report filing:
Depending on your state, filing your annual report may be non-negotiable. Staying compliant means your business can continue to operate without any legal hiccups.
- Avoid Unnecessary Penalties
Why pay more than you have to? Filing on time keeps extra fees at bay and saves your hard-earned money for where it matters—growing your business.
You can continue business as usual when your business is in good standing. You’ll have no problem applying for loans, renewing permits, or working with contractors. Plus, you won’t have to worry about sudden legal barriers.
Keeping up with your filings lets you focus on your best work without worrying that something’s fallen through the cracks.
How to Make Filing Your Annual Report Easy
With some planning, you can make filing your annual report a seamless part of your yearly routine. It’s a straightforward process that, when done right, can give you peace of mind for the rest of the year.
Implement a system to remind you well before the deadline, whether with a calendar, a project management tool, or even good old-fashioned Post-it notes.
Each state has different filing dates, so mark your calendar! To avoid any last-minute surprises, verify the due date for your annual report on your Secretary of State’s website.
Throughout the year, make sure your business records (addresses, officers, etc.) are current. This will make filing your report a breeze when the time comes.
If you need clarification on filing the report, consider hiring a professional. Having the reassurance that it is correct can relieve stress.
A Little Effort Goes a Long Way
As a business owner, you must comply with your annual report filing. It’s a small task with significant consequences if overlooked. You can stay compliant by being proactive, staying organized, and leveraging professional help when needed. So, stay informed, file on time, and focus on growing your business.
If you need help filing your annual report, please don’t hesitate to contact me. I’m here to assist you in this essential task. Schedule a call to learn more.
