Why You Should Separate Your Personal and Business Finances

Why You Should Separate Your Personal and Business Finances

When it comes to running a business, it’s important to keep your personal and business finances separated. This reduces accounting and tax problems and makes it much easier to manage your accounting books. Running a business already takes a great deal of effort, so it helps much to not have additional stress by managing your finances with bookkeeping tools and experts. We understand how important it is to properly manage your finances and the peace of mind that comes with it. We have helped over a hundred businesses with accounting and bookkeeping in the Chicagoland area and have gathered some reasons as to why you should separate personal and business finances to have a better understanding.

  • Establish your business

First off, you will want to ensure that your business is incorporated. Whether you choose to present it as an LLC, C Corp, or S Corp, you will want to ensure that it’s established with the right structure. By establishing a separate legal entity for your business, you will be able to protect your personal assets from your business debts, losses and lawsuits.

  • Acquire business credit

By opening business debit or credit cards, you won’t have to use your personal accounts for business transactions, and it’s the easiest way to keep your personal and business finances separate. In addition, a business credit card can help you build stronger business credit scores and could even boost your borrowing power which could help you qualify for business loans with lower interest rates.

  • Open a business checking account

In addition to credit cards, you also want to open a business checking account and only make purchases for your business through it. Doing so let’s you have a clear and complete picture of your expenditures, which is ideal for when tax time rolls around as all you will have to do is review your statements. 

  • Create a salary for yourself

Seeing as you are the boss of your business, you will want to make it official. So, pay yourself. By creating a salary for yourself, you can write checks from your business checking account which can then be deposited into your personal account. This way, you can easily keep track of your payroll finances and ensure that your salary is being professionally handled as it should be.

  • Keep your receipts

One of the most efficient ways to keep your personal and business expenses separate is by keeping your physical receipts. So pull out those old-fashioned folders and place your receipts within them or upload them digitally. This will help with audits if the IRS ever comes knocking on your door, you can feel confident that you will be prepared.

  • Track your shared expenses

As a business owner, it’s important to keep in mind that many of your business expenses are tax deductible and you will most likely have some expenses to write off! As a result, when you make purchases you will want to ensure that they are separate from your personal ones, which can be done by using your business debit or credit cards. Not only will separating your expenses make things easier for your accountant come tax time, but you will also be protecting yourself by keeping a financial record and continuing to keep receipts.

  • Using personal items for business purposes

When it comes to your business, any expenditure that you can legally write off should be written off to save you money when tax time comes around. By working with a tax advisor, you can determine what’s deductible as well as how to keep the right records.

Properly managing your business finances is certainly of importance! These are just a few helpful ways to manage them throughout the year. Hopefully, you now have a better understanding of the complexities that are involved with running a business and managing your books. Working with an accountant can help with your bookkeeping, payroll and taxes and therefore make life and work much easier for you. Looking for an accounting solution that’ll provide you with peace of mind when it comes to your books?  Get in touch with us here at Motl Accounting as we would be ready to assist. Our staff at our West Dundee, IL office assist many small to medium sized businesses and we look forward to assisting you.

Bookkeeping Tips for a Growing Business

Bookkeeping Tips for a Growing Business

You had a passion to start a business and provide services or products to many customers and fortunately, you are finally there! Your efforts are making your business grow quickly and you are realizing how busy you are becoming to not have time for all the things you used to. One of those could be your bookkeeping and financials. There are more moving parts to a fast growing business and having great financials to help you run and manage the business successfully is of great importance. Great bookkeeping is vital to measuring and understanding your business, so you can manage it as it grows or have the right records for potential investors or lenders. It ultimately helps you monitor your cash flow and make wise business decisions while staying compliant. Here are a few reasons to consider keeping up to date with your bookkeeping if your business is experiencing rapid growth. 

Cash Flow Management

Keeping up with your bookkeeping daily and weekly lets you know how your cash flow is so you can better manage your business operations. Knowing how much is needed to keep the operation going versus what’s currently on hand gives you the opportunity to make smart and quick decisions. With growth comes the possibility for many financial surprises and opportunities and not understanding your cash flow can lead to stressful times for a business owner.

Operations Management

Well organized books let you know where your profits and losses are coming from. By analyzing your books, you’ll have a bird’s-eye view on what’s working or not operationally before it’s too late. This gives you the opportunity to know where to invest in more or where to cut or reduce cost, production or service. This means your accounting books provide opportunities for you to continuously take your business to the next level. 

Business Funding

Many business owners come to realize they need capital at a moments notice and keeping up to date with bookkeeping can be very beneficial in this instance. Cleaning up several months of your books at once can lead to errors, wrong data and be time consuming. Investors and lenders typically ask for information on your books and mostly assist those who have clean books and a good idea on how they spend and receive money. 

There are additional reasons as to why daily and weekly monitoring the financials of a fast growing business is important. When to consider an accountant that can help as your business grows is an important yet sometimes daunting decision. We have helped several clients with making the right decisions to grow their business at Motl Accounting. Our accounting practices provide you the information you need to make sound business decisions during the course of your rapid growth. We have accountants, dedicated bookkeepers and payroll specialists on staff to help our clients. We pride ourselves in providing peace of mind accounting practices so our clients can focus on other important demands of growing their business. 

Is your business experiencing rapid growth? Contact us at our West Dundee, IL location at 847-426-2100 or via our website. We’d be pleased to let you know how we can assist your business during the fast growing phase and also how we can help you grow

5 Ways Accountants Can Help Businesses Grow

5 Ways Accountants Can Help Businesses Grow

Growing as a business is certainly of importance to most business owners. After all, you will want your company to flourish and continue to experience growth for many years to come. However, in order for your business to head in a positive direction, it helps to utilize proper financial planning and analyzing…that’s where an accountant comes into play!

Are you aware of how accountants can benefit your own business? Many might believe an accountant just helps with the crunching of numbers, but you’ll be surprised that great accounting practices actually help businesses grow and generate more profits in the process.

We understand just how beneficial an accountant can be for a business! We have helped several businesses in the Chicagoland area and provided them with great information that’s helped their businesses. That’s why we have gathered five ways in which accountants can help a business grow by working with an accountant like Motl Accounting in Dundee, Illinois. If you would like to discover what these ways are, be sure to continue reading:

  • Creates Budgets & Forecasts Reporting. It’s important that every business has a plan for their future. Therefore, you will want to set up goals to achieve over the next year, as well as create charts and graphs to keep yourself on track and complete them. By working with an accountant, you can have reports created which will showcase how your fixed and variable costs compare with your sales volume throughout the year, providing you with knowledge of the market conditions that you will need for profitable growth.
  • Discovers Key Performance Indicators. Every business has key performance indicators. If you are in retail, you might use inventory turnover for construction or it might be job costing. Your accountant should assist you with discovering yours, as well as advise on methods to set up reports, allowing you to see how they perform over time so that you can make the best decisions for your business for its future growth.
  • Maintains Cash Flow Projections. If there is one thing you want to understand as a business, it’s your cash flow! After all, without cash your business wouldn’t be able to operate at the level you’d want it to. An accountant will create financial reports right out of your accounting software which will assist you with planning your key performance indicators and properly maintaining your cash flow. It’s important to know how to expand your product lines, increase direct costs and add employees in a way that keeps your cash flowing just as it should.
  • Determines Your Businesses Value. It’s important that you know the value of your business so that you can plan for your future. Seeing as opportunities or life events can present themselves at any time, you will want to know how much your business is worth, given the current market conditions. An accountant can assist you with getting to determine your businesses value, so that you can maximize it and your tax liability. We have professionals we partner with at Molt Accounting that help our clients with business valuations. 
  • Creates Advisory Boards. For your business to remain fiscally strong and healthy, you will want to be advised and know what to expect for the years to come. An accountant will work with you to develop a system so that you can forecast budgets, cash flow management and an overall financial analysis for your business. This way you can monitor your goals and business growth through a dashboard and ensure that it is always headed in a positive direction.

These are just a few ways in which an accountant like us can assist your own business with growing.

Are you ready to work with an accountant in the Northwest Suburbs of Chicago to grow your own business and provide your peace of mind in the process? If so, please get in touch with us one of our accounting therapists at Motl Accounting, as we would be pleased with the opportunity to assist you with doing so!

 

When to Hire an Accountant

When to Hire an Accountant

Hiring an accountant is beneficial for any business! Your company will experience different stages of growth and great accountants assist you with staying on track as your business evolves. From creating business plans to handling tax audits, an accountant will be able to guide you through each experience.

Some business owners however avoid outsourcing accounting services, thinking that it will save them money. However, accounting services can actually offer great returns on investments.

If you are curious as to when you should hire your own accountant, you are in luck! Here at Motl Accounting, we have comprised some great insights for you. If you would like to learn more, be sure to continue reading:

  • Are You Ready to Boost Your Income? If you are ready to increase your income, it’s time to hire an accountant. All businesses rely on a steady cash flow and by hiring an accountant, you can help your business optimize and regularize a revenue stream. They will oversee your accounts receivable, improve debt collection and advise on wise investments. In addition, an accountant can also review market rates for your products or services, so that your prices are adjusted accordingly, allowing you to maximize your income.
  • Are You Ready to Save Time? As a business professional, you are busy! If you are ready to save some time, turn your accounting needs over to an accountant. You have enough on your plate and shouldn’t have to worry about taxes, compliance, bookkeeping or payroll. By hiring an accountant, all of this weight will be taken off your shoulders and will be handled by the professionals.
  • Are You Ready to Prepare Your Taxes? Taxes are a daunting subject for any business. If you are aren’t ready to handle yours, it’s time to seek the services of an accountant. From quarterly payments to annual filings, your accountant should ensure that your business taxes are handled properly, giving you peace of mind. After all, you wouldn’t want to put yourself at risk of an audit.
  • Are You Ready to Create Forecasts? As a business owner, you want to make sure that your finances stay on track as your business grows. It may be time for you to sit down with an accountant to create the right plans for your business. Whether you are preparing to impress an investor or needing to hire more staff, your accountant can create models and projections to assist you with making the right decisions for the upcoming months and years.

As you can see, an accountant is a wonderful asset to a business! We have helped many businesses with all these insights and more.  These are just a few things that you should keep in mind if you are considering hiring your own accountant.

If you are all set to begin working with your own accountant, contact us here at Motl Accounting. Our goal is to ensure that our clients have peace of mind, when it comes to their accounting. We would be honored to work with you and assist you with our accounting services in Dundee, Illinois.  

Benefits of Hiring a Bookkeeper

Benefits of Hiring a Bookkeeper

In order to maintain a successful business, it’s advisable to work on keeping your finances in check. Bookkeeping is the recording of financial transactions made by your business and is an essential aspect of ensuring that your accounting remains on track.

Overall, bookkeeping is similar to going to the doctor…no one wants to take the time to do it, but it is something that can’t be neglected. Therefore, in order to save you time and to have confidence in your business’s finances, you should consider outsourcing your bookkeeping operations to a vetted bookkeeper.

We understand just how important it is for your business operations to run smoothly! Our award winning accounting services provide bookkeeping for several businesses in Dundee, IL and neigbouring cities  That’s why we at Motl Accounting  have gathered some benefits of hiring a bookkeeper for your own business. If you are looking to gain some great insights, here they are:

  • Prevents Errors. Even the most experienced business owners make mistakes when it comes to their books. From data entry errors, missing entries, double entries and even mixing up types of expenses, there is certainly a great deal of room for errors to occur. By hiring a bookkeeper, you can ensure that their keen eye won’t miss any errors.
  • Saves You Time. You are busy as a business professional! Do you really want to spend time managing your books and paying bills when there are other areas of the business that need more of your attention. Bookkeepers know when it’s time to spend within your budget, along with accurately invoicing and handling your accounts receivable. By hiring a bookkeeper, you can have more time to focus on your business operations, while also having confidence that your bills are paid on time.
  • Provides You with Insight. As a business owner, you may believe that you have a good sense about the state of your business’s finances. However, having another pair of eyes overseeing yours could provide you with some surprising insight! Bookkeepers typically provide reports that show you how your business is doing each month, where the funds are going and how your efforts are paying off. This way you can see the big picture once the numbers are crunched and learn of areas where you may need to make improvements.
  • Saves You Money. Without money you wouldn’t be profitable as a business. Therefore, saving it in any way that you can is certainly of importance! The salary and benefits of hiring an in-house bookkeeper can be significant. So by outsourcing your bookkeeping services, you can save a great deal of money while still having your finances taken care of.

A bookkeeper is a wonderful asset to a business! Our clients appreciate the relationships they have with their dedicated bookkeepers and the technology we have for them to have access to their statements at their convenience. These are just a few of the many reasons as to why you should consider hiring your own.

If you are ready to learn about our bookkeeping services, or ready to have us assist you,  please get in touch with us here at Motl Accounting. As a leader in the Northwest Suburbs, we would be pleased to have the opportunity to assist your business with our award winning accounting services.

Motl Accounting wins 2018 PASBA Award – Accounting Firm of the Year

Motl Accounting wins 2018 PASBA Award – Accounting Firm of the Year

The Professional Association of Small Business Accountants Holds 12th Annual Awards Ceremony and Honors Six Members

Sunny Isles Beach, FL, May 9, 2018 — The Professional Association of Small Business Accountants held its 12th annual awards ceremony at the 2018 Spring Marketing Conference in Sunny Isles Beach this week. Six well-deserving members were honored with awards during the conference dinner party, located at Trump International Beach Resort. The winners were chosen in four award categories, including PASBA Accounting Firm of the Year.

The Motl Family were chosen as the 2018 large practice recipient of the Association’s Accounting Firm of the Year for their firm, Motl Accounting. The Motl’s were nominated by the members of the association to receive this outstanding award that honors a member who has consistently demonstrated the beliefs of the association’s motto, Teach~Share~Learn.  The Motl’s have been members of the Professional Association of Small Business Accountants for 18 years and have served on the Board of Directors, Website Committee, National Conference Planning Committee, Payroll University, Future of PASBA Committee and presented at multiple conferences.

The Professional Association of Small Business Accountants represents Certified Public Accountants, Public Accountants, and Enrolled Agents who provide accounting services to small businesses throughout the United States.  Members of the Association have built a nationwide network of accountants to benefit small business clients across the country. Using the collective resources of this network, Association members offer their clients a level of service and expertise that individual practices are unable to rival.

For more information, visit www.smallbizaccountants.com.

Contact:

Jordan Bennett

4919 Lamar Ave.

Mission, KS 66202

(866) 296-0001

jbennett@dci-kansascity.com