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Helping to Save the Planet Can Also Save You Money

Author: Keith Huggett

With today's economy every dollar counts. What if you could save a few dollars by eliminating all of the paper you use in your office?  Sounds like a dream, or a child's wish, doesn't it.  Everyone claims to be going paperless these days.  How do you do it? Purchase a quality scanner and start scanning all of your printed documents. Sound fun. Absolutely not. What is the upside here? Why on earth would you want to do ALL THAT WORK?

When you "go paperless" not only are you helping the planet out by saving a few thousand trees, you are also helping yourself and your company. Here are a few benefits that can arise due to you utilizing a good quality scanner:

1. All of the employees in your office will have access to the digital files at the same time. No waiting for Fred to be done with the file in question.
2. Less cost in storage fees. You will no longer have to pay for storage for the bankers boxes of files that need to be kept for 7 years.
3. No shredding costs. Without hard copies of files, you no longer need to pay the shredding company to come and handle the papers you used to have.
4. You can safely and securely backup your data files on your own computer systems as well as in the cloud.
5. You have access to your files, anytime, anywhere, allowing you to work while traveling to meetings, conferences, etc.

While the initial work is time consuming and tedious, the end result benefits both your business and the planet.  What more could you ask for?  One you have your office set up as a paperless office, the goal is to keep it that way.  It is far too easy to backslide into an office that relies on it's paper copies.

The Tax Office, Inc. is a paperless tax corporation and would like to help you become a paperless office. If you have any questions we would be happy to help you.  Our Client Accounting Services program specialists can help you become a paperless office, while assisting you with any other office needs you may have. Contact us if you have any office, tax, accounting, or representation needs.

Big Business, Small Business, CFO's Provide Answers

Author: Keith Huggett 

No matter what size your business is, it can benefit from the advice provided by a CFO. Whether you have just started up your company; if you've been in business for years, a CFO has experience, knowledge, and insights that he or she can apply to questions and situations that apply specifically to your situation. Here are some reasons why every company needs an outsourced CFO:

1. Raising capital: A CFO helps to lead your management team. He adds credibility to your company and stability to your financial team.  He gives your CEO someone to bounce ideas off of, when putting together your financial vision.

2. Avoiding mistakes: An experienced CFO is prepared to handled the unexpected. He's dealt with missed deadlines, budgeting errors and cost overruns many times. He can help the team understand how to handle these issues and more, without the stress and panic that often accompanies them.

3. Optimize cash management: Instead of having cash flow issues popping up at inopportune times, an experienced CFO will be able to show the management team how to plan for the future and stretch each dollar accordingly to prevent cash flow issues.

4. Improve company management: Having been in business for many years, the experienced CFO knows the ins and out of how to run a business properly. He is intimately knowledgeable about each and every part of the business structure and plan. With such knowledge he can advise the CEO about where to make expansions and cuts as needed for improved growth.

5. Planning & Proposals: A good CFO knows how to constructively challenge a plan, proposal, number, or claim. Having spent many years being a part of both good, bad, and neutral plans he has learned how to improve such things and give helpful advise for improvement.

6. Building credibility: Investors appreciate and value a senior CFO's contribution. They know that a good CFO can be a trusted advisor and will improve the company's, and the CEO's, performance.

7. Gaining investors: Companies that meet or exceed plan, manage cash and headcount well, have a history of delivering accurate, on-time financials, typically get high marks from existing investors. It is far easier to get additional investors when your current investors are happy.

8. Create an aura of confidence: Having access to a CFO reassures employees, creditors, suppliers, banks, service providers, and investors. You will attract better people, get better terms, and operate better as a whole.

9.  RoI: A part time CFO more than pays for himself, providing CFO expertise without full-time employee headcount. Many startups use a part-time CFO for as little as five hours per month and can scale his involvement as their needs grow. As affordable as a part-time CFO is, how can you afford not to have one?

10. Gain knowledge: While you have the CFO working with you, your management team has the opportunity of a lifetime to learn from a very experienced businessman with a wealth of knowledge about the business world. Take advantage of it. Ask questions. Learn as much as the CFO is willing to teach you.

If you are interested in finding out more about CFO services the Specialists at The Tax Office, Inc, would like to direct you to their Client Accounting Services (CAS), which include CFO Plus services, CFO services, Controller, Accounting Manager, Bookkeeping, and Payroll Packages. Contact Us to learn more.

 

Even Small Businesses Can Have Large Business Financial Issues

Author: Keith Huggett 

Large businesses have it all: large accounts, both income and expense, customers coming and going, and financial issues and the staff to handle them.  The same things occur with smaller businesses too. Small businesses have large accounts, both income and expense, customers coming and going and financial issues.  What smaller businesses may not have is the staff to handle those issues.  In a small business, there is usually the business owner who is in charge of running everything and some things can fall by the wayside.  There comes a time for a small business to consider getting some help.  Hiring a full-time CFO may not be an option, for many reasons, one of which may be cost, or there may not be the need for a full time CFO. Luckily for the small business owner there is the option of outsourcing CFO services, or hiring a part-time CFO.

Reasons to Consider a CFO:

Experience: A CFO brings years of financial experience to your company. An experienced CFO  will go beyond the numbers and get involved in all aspects of your operations. He can be a sounding board for key business decisions and identify opportunities for improvement.

Business Analysis: Like all companies you will need to analyze your business performance on a regular basis.  Unless you have spent what little spare time you have at business school learning the latest in Finance 101 or have taken the time to study business books, like most business owners, you haven't been trained in developing and using financial information and have little time left over from running the day to day operations of your business. Having a financial expert review, analyze, and summarize the financial data into meaningful reports can add tremendous value.

Competition: Most small business owners do not have the time or access to compare their operations to similar companies. A CFO can set up reports and gain access to data to compare the business to other comparable companies.

Resources: A CFO is a prime resource for training, developing and supervising your staff. As your organization grows the CFO can help you develop and implement processes and controls that protect your companies assets.

All in all, outsourcing or hiring a part-time CFO allows you to tap into the wealth of experience and knowledge at a fraction of the cost of hiring a full-time CFO.  You are then able to focus on growing and building your business knowing that an experienced professional is watching over the company's financial resources and performance.

The professionals at The Tax Office, Inc. are pleased to announce their newest division, Client Accounting Services (CAS), which include CFO Plus services, CFO services, Controller, Accounting Manager, Bookkeeping, and Payroll Packages. Contact Us to learn more.

Small Business Owners Need to Be Aware of Financial Situation

Author: Keith Huggett

Launching a startup business is exciting, but you can't ignore the practical realities of your personal finances. If you're one of the many people who created a startup business while being employed by another company, you will likely experience a point when you need to decide whether to stay with your day job, or quit and pour all of your energies into your own business. This is a difficult decision. You can't effectively run your startup with the limited time that you have, but you're not sure if it will be successful quickly enough to sustain your financial requirements.

So how do you know when it's time to take the plunge? First, get the following ducks in a row to protect your own financial health:

• Save up for a long haul: Pay down as much debt as you can and save enough money to sustain your lifestyle for at least six months. Separate your personal money and the funds you plan to dedicate to your startup business so you don't face any unpleasant financial surprises down the road.
• Have a solid plan: While you may have fully thought through your business idea, if you don't have a plan to follow it's easy to get distracted along the way. You may be able to afford these distractions now, but this won't be the case if you give up your primary income source.
• Consider factors other than money: What will you do for health coverage? Do your kids currently participate in a daycare program through your current employer? Are there other perks that you currently take for granted that will impact your lifestyle or finances?

Remember, starting a business often requires more money than you may expect. Be sure that you have enough startup capital to cover unexpected situations.

To make sure you have the full financial picture of your startup business, consider working with a qualified tax professional like those at The Tax Office Inc. We can help you evaluate your current financial situation and the various consequences of striking out on your own. Contact us today to learn more, or schedule a meeting online. For quick answers to your questions, find us on Twitter at #Plan4Tax.

Keeping Finances Separate Ensures Less of a Money Mess

Author: Keith Huggett

If you’re starting a business, it’s your money. So who cares if your personal and business finances are intermingled?

It’s simple: separating your finances is the business-like thing to do, and it helps protect your personal assets. It also shows you’re mature and savvy enough to turn starting a business into success.

Why?

• Mixing personal and business finances can create confusion at tax time. You’ll risk missed tax savings, and it will cost more to prepare your taxes.
• If your business grows and you want to bring in partners or investors, you cannot have “fuzzy” finances.
• If you and your business are indistinguishable, you could be liable if the business is sued or you can’t repay a loan.

What should you do?

• Keep everything separate, including bank accounts.
• It’s tempting to leverage your home or investments when starting a business. Don’t do it. Positive thinking is good, but if things don’t work out you could easily lose those personal assets.
• Don’t use your personal credit cards, either, for starting a business or ongoing expenses. Get a separate business card and use it only for related expenses.
• Don’t pay personal bills with business funds. Pay yourself instead – not a whopping salary, but enough to support you and still leave as much money as possible in the business to keep it going and growing.
• It can also be tempting to reward yourself after a few strong months by taking a chunk of cash from your business to make a large personal purchase, such as a car. Don’t do that either. Revenue could drop, and your young business needs all the capital it can get.

Establishing a solid foundation when starting a business will pay huge dividends down the road. Since finances are the “bottom line” of every enterprise, consulting one of our professional experts at The Tax Office Inc. could be your smartest startup move. We’re experienced in working with new businesses, and when you contact us, we can give you the advice and support you need to get your new business off to a great start.

 Mistakes Like These Can Be Costly

Author: Keith Huggett

Many small business owners opt to do their business bookkeeping in-house with the help of administrative staff. This makes sense when you're on a tight budget or when you don't have enough work to justify hiring a full-time bookkeeper.

However, if you choose to keep the books yourself, be aware of these 9 common business bookkeeping mistakes:

1. Failure to reconcile transactions with the bank: Your cash flow depends on more than just payments received and expenses. You may also incur bank service or interest charges that should be entered into your books on a regular basis.
2. Classifying your accounts incorrectly: Having a clean, clear chart of accounts will save you a lot of time when preparing year-end taxes.
3. Recording transactions under the wrong account type: Transactions such as  business permits should be considered assets, not expenses. Using incorrect account types can muddy your balance sheet.
4. Not using accounts when appropriate: This mistake is most common when withholding taxes; the amount withheld should go into its own account so that the original account is accurate.
5. Failure to monitor petty cash: Unrecorded transactions can lead to discrepancies and confusion down the line.
6. Allowing employee advances to slide: If you allow employees to take advances against their payroll, it is important to make sure the funds get replenished at the agreed upon time.
7. Incorrect dates: Whether entering new bills or sending invoices to customers, having the correct dates on transactions will help maintain good cash flow and ensure more accurate reporting.
8. Not tracking reimbursable expenses: Reimburse out-of-pocket expenses to maintain a more realistic income statement.
9. Failure to communicate: When business owners make verbal agreements and fail to mention them to the bookkeeper, transactions can be recorded incorrectly.

Outsourcing your business bookkeeping is a good way to ensure that it is done properly and in a timely manner. It will also save you time and will not not require the larger investment of employing a bookkeeper. Contact The Tax Office, Inc. today to learn more about how we can help you with business bookkeeping.

How We Can Automate Your Accounting Workflow And Save You Time, Money And Headaches

Author: Chris Coggins

Financial management for a business can be a full-time job. In fact, depending on the size, type and complexity of your organization, proper accounting could require a full-time, experienced staff member or a team of professionals. In competitive economic times like these, and considering the cost of employing people, it's not always a viable solution to handle this work inhouse.

Our Back Office Support System (BOSS) can help. You get the benefits of an experienced accounting team in a more cost-effective, efficient model.

BOSS is a comprehensive, outsourced accounting solution. Our expert accounting team can complete the tedious daily tasks that take up your staff's time, tasks that don't add sufficient value for customers, the company or shareholders.

This solution takes advantage of myriad web-based connectivity and communication technologies. Your staff faxes or emails bills, statements and payroll data to our team on a regular basis. We handle bill payment and general cash flow management, payroll processing and tax filing, monthly reconciliations, W-2 and 1099 preparation, tax returns -- anything related to accounting. And we can help with your overall business strategy, especially as it relates to your financials.

There are numerous benefits of outsourcing your daily accounting functions through BOSS. They include these:

• Staff members that do have some financial expertise can concentrate on meeting your company's goals, creating business models and providing value-added analytics.
• You gain access to expert accounting resources on an ongoing basis at a fraction of the cost of full-time staff.
• Your information is readily available through online access at all times.
• You can take advantage of professional support and suggestions from an experienced accounting team throughout the year.

We provide a continuum of services, so you can choose the level that is right for you. For more information about how we can help drive efficiencies and save your company time, money and hassle, contact us today.

Taking Advantage of Virtual Services For Your Business

Author: Keith Huggett

Ever seen a virtual pet simulator? A favorite pastime of preteens, these games are available on most portable devices and computer systems. Kids feed these virtual animals, provide shelter and play with them, and seek medical care when needed.

In some ways, virtual accounting works in a similar, though more serious and professional,  fashion. It all happens through computer interactivity, but instead of pushing a button to give a dog kibble, you provide your financial information to a CPA firm, which does the bookkeeping work: the actual data entry, processing and reporting. You'll always know where you stand money-wise, without having to perform the grunt work.

Virtual accounting defined

Virtual accounting is a form of outsourcing that takes advantage of technologies like cloud computing, web meetings and shared work spaces. You're still the financial boss, but you save time (no more wrestling with QuickBooks) and money (minimal inhouse staff) -- and increase accuracy -- by having work completed by an expert offsite organization. The level of accounting completed by the outsourcing agency can vary according to your needs, ranging from payroll functions to financial reporting and tax return preparation.

Benefits of virtual bookkeeping

Here are some positive outcomes of pushing your books into the virtual, outsourced space:

• Virtual bookkeeping gives you access to financial information on any Internet-enabled computer. You can provide oversight and get real-time updates on the go.
• You can avoid the training expenses and large payrolls associated with bookkeeping tasks that can easily be handled by contracted professionals. Minimal inhouse coordination is needed.
• You'll retain complete control of your books.
• You can take advantage of the experience, knowledge and ongoing planning assistance offered by dedicated CPAs.
• Software and network management will be handled by someone else, thanks to the Internet. Your data is always backed up on secure remote servers.

Outsourced, cloud-based accounting is a relatively young practice, so your choice of a partnering firm is critical -- regardless of how much responsibility you are willing to turn over. We know accounting and we know technology, and we know how to make them work together successfully for you, and if you have any questions, contact us for a consultation today.