Top 3 Business Tips From Your Small Business Accounting Firm

Small business accounting firm – This year is well on its way and new year’s resolutions are taking shape. Seeds are being planted, new habits are implemented and success is on its way. Along with losing weight, stopping to smoke and more quality time with the family, running a successful business is on many people’s mind. With tax season in full fledge, it’s no surprise small businesses are even more aware of their finances and taking a closer look on how to leverage every tool, from technology to manpower and good old habits, to ensure an increase in the bottom line in this new year.

So what are some of the top 2018 tips to grow your business?

As your small business accounting firm, it may be obvious that we’ll highlight your finances. But keeping all that paperwork up to date is more than just about organization. By tracking your finances, you can discover opportunities that may be otherwise missed, leading to an increase in funds.

small business accounting firmFor example, a clothing store business owner notices that popular brand labels increase sales. But by looking at the financials, he realizes that he may sell more, but the profit margins are lower when compared to non-branded clothes. So there’s an increase in sales, but less money in his pocket. The business owner can choose to carry less of the branded clothing to make room for non-branded items, allowing him to make more of a net profit for the year. Only updated financials can reveal this business opportunity.

It’s tax season after all, so the topic is bound to come up. On a personal level, April 17th is the date everyone in the U.S. knows about. However, as a small business owner, there’s a lot of paperwork and deadlines to deal with throughout the year. Your small business accounting firm is here to remind you that preparation is key.

For example W2s for employees and 1099 forms for contractors are sent before January 31. If you’re a partnership or an LLC, you’ll need to file a form 1065 to report your company’s income or loss. If you’re self-employed, you’ll need to file and Schedule SE to calculate social security and Medicare tax. If you work from home, you’ll need an 8829 form to deduct some of your living costs such as rent, insurance and utilities. As you can see, there’s a lot of tax planning throughout the year so getting ahead of the game ensure you hit the deadline and not pay penalties.

Strategize your staffing plan.

Many small businesses tend to take a reactive approach to staffing their businesses. Things start to get busy and owners decide to hire. Because they’re busy, there’s not a lot of time to go through a rigorous interviewing process. They may post an ad, interview the first five candidates and hire immediately to not slow down productivity. But with a more proactive approach, by looking at the previous year’s sales number, a business owner can anticipate the busier season.

small business accountingFrom holidays to back to school to snowbird season, they’re sure to discover somewhat of a pattern. Prepare in advance, look out for resumes several weeks before, interview and even take a close look at various types of employees. Maybe two part-timers are better than one full-timer, maybe a contractor can sign on for just a few months, a freelancer or even an intern can also chip in in a different way than a 40-hour work week employee. Your small business accounting firm reminds you that employees’ vacation time should also count as your staffing plan.

If you prefer to leave all that accounting and paperwork to a professional, trust your MOA Accounting Tax and Financial Consulting firm to do the job right. Call us at 305.868.7620 for help with tax filing, discovering missed business opportunities and even representation before the IRS.