The best Christmas present for your accountant is organized records. Follow these simple steps and you’ll feel the love all the way through 2019. Use Quickbooks to help:
Advertising is communicating with customers in an attempt to influence their buying behavior by conveying a persuasive message about your products or services. Although we may not recognize it, businesses around the world use every media outlet possible to advertise their products or services. Some common advertising outlets include newspapers, Yellow Pages, direct mailing, television commercials, radio advertisings, billboard/vehicle advertising and online marketing (website advertising, business webpages, email chains, social media, etc.). The type of media outlet a business chooses depends on the type of customers the business wishes to reach, also known as the target market.
For businesses that are preparing year-end payroll and information returns from Quickbooks, the following tips are helpful in order to avoid the most common mistakes:
Exit Planning – It might not be what you think
There’s a sign outside our office that lets the public know that our Firm assists in exit planning. Unfortunately it seems that a lot of people think this is a plan to exit the world of the living. Not so.
A good exit plan asks and answers all the business, personal, financial, legal and tax questions involved in transitioning a privately owned business. It includes contingencies for illness, burnout, divorce and death. Its purpose is to maximize the value of the business at the time of exit, while minimizing taxes and ensuring the owner the ability to accomplish all of his or her personal and financial goals in the process. When you have an exit plan, you are able to control how and when you exit (the business). Please contact Michael Reynolds for more information on exit planning.
One of the most important aspects of maintaining a healthy business is ensuring that the business has strong cash flows. The cash conversion cycle (CCC) is the time span between a business disbursing and receiving cash. The cycle can begin in a variety of ways including performing research and development or purchasing inventory. The cash cycle ends when cash is received for the goods or services provided. It is important for a business to properly manage its CCC in order to ensure that bills are paid on time and adequate inventory levels are maintained.
Periodically we will highlight a ratio or benchmark and demonstrate how you can use it to better understand your business
The disclaimer: Benchmarks and ratios, blindly applied, can be dangerous. Benchmarks can be useful in understanding areas to investigate, but it’s important to understand what’s being compared and why variances might exist.
The Ratio: Current Ratio
The current ratio is one of many financial ratios used by business analysts to assess the health of a business. The current ratio is calculated by taking a business’s total current assets (cash, accounts receivable, inventory, etc.) and dividing that by a business’s total current liabilities (accounts payable, accrued expenses, current portion of long-term debt, etc.). For example, if Calvin’s Clam Bar has $100,000 in current assets and $50,000 in current liabilities, then its current ratio is 2:1.
As accountants and advisors we are often asked by small business owners as to the best method to raise capital. The chart below seeks to provide some insight into various common methods for raising capital for small businesses.
Please note methods, business types, amounts raised and the criteria indicated below are generalizations for typical situations common in business. However, each method can theoretically be applied to any business type and amounts raised could be any amount depending on the financial situation of the entrepreneur.
By Douglas S. Stanger, Esq. Shareholder of the Firm of Flaster/Greenberg PC and on the Panel of Trustees of the Department of Justice.
While bankruptcies are generally down in most areas of the country, not here in Atlantic County. With many closed casinos and eight thousand foreclosures looming, individuals and businesses have been under pressure. It is expected that over the next few years individuals and businesses will be looking to re-organize or simply rid themselves of debt and obtain the “fresh start” a bankruptcy can provide. Bankruptcy is one strategy among many used to assist those in financial distress. This article will give a brief review of the bankruptcy alternatives. There are generally three statutory bankruptcy schemes known as Chapter 7, Chapter 11 or Chapter 13.
Under current law, most employees making $23,660 or less per year automatically qualify for overtime after 40 hours worked per week. The new rule recently issued by the U.S. Department of Labor (DOL) would raise that threshold to $47,476, effective December 1, 2016.
The impact of this new regulation will vary amongst businesses. It is important for every employer to assess the impact of these regulations now and to implement any changes that may be deemed necessary for compliance purposes in a way that is most cost effective and beneficial to their business.
As always, we are happy to answer any questions you may have regarding this tax matter.
When we think of business performance consulting or business financial consulting, we may think of these services as appropriate for struggling or underperforming businesses. In our years of consulting, that is not the typical situation. While we work with some businesses facing temporary challenges, we most often provide services to high performing companies which are striving to reach the next level. The business owner may feel that despite good performance, if some adjustments were made to the business strategy then the business could grow or become more profitable. Maybe after years of solid performance the business has plateaued and the owners would like some fresh ideas. Other owners set new goals to expand, and they aren’t exactly sure how they will achieve them.