401K, Accounting, Bookkeeping, Business Expenses, Employee, expenses, IRS, Payroll, Small Business, Taxes, Uncategorized
As a small business owner, managing your finances can be overwhelming and intimidating. There are so many things to consider, from taxes to cash flow to budgeting. Luckily, there are some simple tips you can follow to help make the process easier. Let’s look at four financial tips every small business owner should know.
1. Create A Budget and Track Your Expenses:
Creating a budget is essential for any successful business. With a budget, you can easily manage your finances and plan for the future. Plus, tracking your expenses will help you identify areas where you can save money. Make sure to track all of your income and expenses (including taxes!) on a regular basis. This will ensure that everything is accounted for and that you have an accurate picture of your overall financial health.
2. Secure Financing Early On
If you don’t have access to capital or don’t want to use your own funds, securing financing early on is key. Whether it’s taking out a loan, talking to an accountant, applying for grants or even crowdfunding, having the right funding can make all the difference in getting your business off the ground. Make sure that you research all of your options before making any decisions – this will help ensure that you get the best deal possible!
3. Keep An Eye on Cash Flow
Cash flow is one of the most important aspects of running a successful business. Keeping an eye on cash flow means staying on top of invoices and payments from customers as well as keeping track of bills and other expenses that need to be paid in order to keep operations running smoothly. Setting up automated reminders or using an accounting software solution can help make this process easier – but ultimately it’s up to you as the business owner to monitor cash flow closely and stay ahead of any potential issues with payments or collections from customers.
4. Hire Professional Help When Needed
When it comes to managing finances, sometimes it pays (literally!) to hire professional help when needed. Hiring an accountant or bookkeeper can save time and money by ensuring that all paperwork is filed correctly, and all necessary tax documents are in order each year. Additionally, hiring professionals may also provide valuable advice related to cash flow management or other financial matters that can help keep your business on track financially over time!
With these four simple tips in mind, managing your finances as a small business owner doesn’t have to be so daunting! By creating a budget and tracking expenses regularly, securing financing early on if needed, monitoring cash flow closely, and hiring professional help when necessary- you’ll be well on your way towards a successful small business with healthy financials.
Payroll, Payroll Dundee il
Are you a small business owner who is overwhelmed by payroll tasks? If so, you are not alone. Payroll can be complicated and time-consuming, especially for business owners who are already busy enough. There are still those that like a challenge and prefer to process payroll themselves, but fortunately, there are solutions available for those that would like a process that is a little bit easier. We have highlighted some of the options available to small business owners when it comes to payroll and provided tips for making the process as smooth and stress-free as possible. So, if you’re ready to learn more about payroll for small businesses, keep reading!
Process Payroll Yourself
For the tax savvy business owner, the DIY approach to paying your employees may be the right method for you. But given all the payroll mistakes you can make and fines that will result, don’t dive in unless you are completely comfortable with everything- from what taxes should look like as well as how much money is owed per employee.
Follow these steps:
1. All employees complete a W-4 form
When you hire a new employee, it’s important to file Form W-4 with their wages. This form documents the filing status and personal allowances of your workers so that taxes can be assessed accordingly.
2. Employer Identification Numbers
The IRS requires that every business have an Employer Identification Number (EIN), which is used by the agency to identify any person or company paying employees.
3. Payroll Schedule
Once you have your EIN you need to add three important dates to your calendar: employee pay dates, tax payment due dates, and tax filing deadlines.
4. Calculate and Withhold Income Taxes
Use the IRS Withholding Calculator and your state’s resource to determine which federal and state taxes to withhold from your employees’ pay. You must also keep track of both the employee and employer portion of taxes as you go.
5. Pay Payroll Taxes
When it’s time to pay taxes, you need to submit your federal, state, and local tax deposits according to your schedule.
6. File Tax Forms & Employee W-2s
Send in your employer’s federal tax return quarterly and state or local returns as applicable. Prepare your annual filings and W-2s at year-end.
Takeaway : The DIY approach to doing your company’s payroll is less expensive, but you open your business up to risky mistakes and costly fines.
Use a Payroll Service
Payroll services are the answer for any small business owner who has found themselves bogged down by payroll paperwork. These professionals take care of everything from paying employees to processing taxes – allowing you to get back to focusing on things that make your business money.
Like the DIY approach, all employees must complete a Form W-4 and your business must have an Employer Identification Number (EIN).
Next steps:
1. Choose a Payroll Provider
Payroll providers automatically process payroll calculations, payroll tax statements, year-end taxes and more for your company. There are multiple factors to consider when choosing a payroll service, such as features, ease of use, cost and support.
2. Add Your Employees
Add your employee’s information – name, address, Social Security number and tax withholding information.
3. Track & Import Hours Worked
Employers are required by The U.S. Department of Labor to keep track of wage records for up to two years.
4. Process Payroll
Run payroll with the click of a button
5. Track Tax Payments and Filings
The IRS requires tax forms to be kept for three years. All required information is kept and available through your payroll provider.
Takeaway: Although a payroll service is more expensive than handling payroll on your own, payroll services perform a variety of payroll-related tasks for you, greatly reducing risk and the time it takes to run your payroll.
Hire an Accountant
For those that are not interested in taking on the burden of doing their own taxes or using a payroll service, hiring an accountant may be the right fit for you and your business.
1. Choose an Accountant
This is not a decision to be taken lightly. Your accountant will become deeply involved in the operation of your business. Do your research and find someone you trust.
2. They do the rest!
Takeaway: Hiring an accountant is the most expensive option, but it eliminates risk and ensures you are compliant with federal, state and local payroll, wage and tax laws.
If you’re a small business owner, it’s important to understand that there are different methods available to process your payroll. Finding the right fit for your business is imperative. Take the time to research your options, so you can ensure that your business will have a smooth and easy experience when it comes to paying its employees.
No matter your size, we can custom tailor a payroll solution for you. Contact us TODAY for an initial payroll services strategy session.
Accountant, Accounting, Payroll
There are many different options for accounting and it can be difficult to decide which is the best for you or your business. You can hire an accountant to do your books or you can use accounting software. Each has its own pros and cons, and it helps to understand them before making a decision. In this blog post, we will discuss the pros and cons of hiring an accountant vs. using accounting software. Hopefully it will help you decide which option is right for you!
Hiring An Accountant
Hiring an accountant is a good option for businesses that don’t have the time or resources to do their own accounting. An accountant can help you with everything from bookkeeping to tax preparation. They will keep your books in order and make sure you are compliant with all applicable laws. Hiring an accountant also gives you someone to rely on for advice and support. A main benefit of hiring an accountant is the time it saves. You can focus on other aspects of your business and personal life instead of working on your finances for hours on end.
However, It can also be difficult to find an experienced accountant who is knowledgeable about your specific industry. Additionally, you are limited to the services that the accountant offers. If you need help with something that the accountant does not offer, you will have to find someone else to help you.
Using Accounting Software
Using accounting software is a good option for businesses that want to do their own books but don’t have the time or resources to hire an accountant. The software gives you access to all of your financial information in one place, which makes it easier for you to keep track of what’s going on with your business and make decisions based on that information.
However, using accounting software can be very time consuming and difficult to learn. You need to be able to understand financial statements in order to use the software effectively. If you don’t have any experience with accounting, it will take some time to learn how to use the software and understand what the statements mean. Additionally, you are responsible for entering all of your financial information into the software, which can be a time-consuming process. If you find yourself struggling with the software, it is wise to consider hiring an accountant.
In conclusion, both hiring an accountant and using accounting software have their own pros and cons. It is important to weigh the pros and cons of each option before making a decision. If you use accounting software, make sure that the software is easy to learn and use before purchasing it. This will help ensure success!
If you hire an accountant, make sure that you hire someone who is knowledgeable about your industry and has experience working with businesses like yours. We pride ourselves at Motl Accounting on helping various types of businesses and individuals with their taxes. Whether you need accounting or payroll services, we can help. The most important factor when it comes to your finances is peace of mind and we offer that to our clients.
Need help with your business finances or personal taxes? Contact one of our experienced professionals at our West Dundee location to get the help you need.
Employee, Payroll
The Great Resignation and other factors have led to a shortage of workers and business leaders are having to find creative ways to recruit employees. It currently helps to be flexible when looking for workers to keep your business operating at the pace it should. For example, consider part time workers or freelancers for full-time positions till you can find the employee you are looking for.
The focus should be on your business production output and how you can get there with the workers you can get. We have a list below of where and how you can find workers to help you permanently or temporarily.
Tips
- Advertise on Job Board – Job seekers visit job boards like Indeed to seek employment. Posting your openings there can reach many seeking employment. You can also sponsor your openings to reach more people seeking jobs in your industry.
- Advertise on Social Media – Post your positions on social media and use their job boards as well. LinkedIn and Facebook have places where you can post open positions with the descriptions, salary and more. Your open positions can gain lots of exposure through social media and in turn lead you to the right candidates.
- Ask for Referrals – Ask for referrals through your local business chamber, local community events and even friends and family. You’ll be surprised at how they may be able to connect you to a suitable candidate or point you in the right direction.
- Attend Career Fairs – Attend physical and virtual career fairs to meet with job seekers. Many career fairs focus on industries, so search for those that are in yours to have access to those looking for jobs in your industry.
- Recruit Part timers – Consider part time employees for full time positions. This might warrant managing more employees on your part. However if the success of your business depends on headcount production, it’s worth considering
- Recruit Freelancers & Contractors – Hire contractors who can help you in any capacity till you find an employee. There are also many freelance websites where you can find professional freelancers who can assist you.
Payroll, Small Business
Managing Your Employees After the Pandemic
The COVID-19 crisis led to many changes in how employees work. Employees had to adjust to new routines and organizations had to make adjustments by providing access to work remotely. With normalcy setting in and the return of workers to physical offices, this could be a great time to revisit how to manage your team as they return to their work spaces. Meeting with your human resources and payroll providers to make adjustments that will keep your company and employees safe is advisable. We have a few tips here to consider when it comes to managing your human resources for positive results.
Revisit the Employee Handbook
The employee handbook is to have policies and procedures to help defend you from lawsuits. Ask an attorney to review your handbook to ensure it meets the times and update it as needed. Roll it out through a series of training sessions and have your employees (old and new hires) sign a statement acknowledging their understanding of the updated handbook.
Revisit the Office Setup
The pandemic led to a new awareness of being extra cautious and safe. Employees will want to feel safe at work and how your office is organized could make a difference. Consider having more space between staff desks and cubes to make everyone feel comfortable. You can also ask your employees for input on what their preferences are and accommodate them based on company policies and resources.
Be Supportive
Everybody deserves fair and equal treatment at the workplace and supporting your employees in this manner is encouraged. After a tumultuous year, providing the environment and flexibility that supports all manner of employees can make a difference in your business outcomes and in the lives of your staff. Having guidelines and policies that ensure fairness to all your employees should provide them with the peace of mind to carry out their duties effectively. You can also refer to the CDC’s guidelines on general business questions for COVID-19
Summary
As a human resource and payroll company, ensuring our clients are safe with the right information and tools is a main objective. It is important that business owners have the right answers to questions to keep them compliant and that’s where we make a difference.
Contact one of our Payroll Rockstars at 847-426-2100 to learn how we assist many businesses in the Chicagoland area with their payroll and human resources needs. We’d be happy to assist you and your staff with managing your payroll and keeping you compliant.
Accountant, Accounting, Bookkeeper Dundee, Bookkeeping, CPA, Payroll, Payroll Dundee il, Payroll Elgin IL, Small Business, Taxes, taxes dundee IL
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!
