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
Easy Ways to Grow Your Retirement Savings: Smart Retirement Planning

Easy Ways to Grow Your Retirement Savings: Smart Retirement Planning

Retirement often feels like the finish line of a marathon. No matter how far away your last day of work may seem, it’s a goal worthy of pursuit. Creating a retirement savings plan is akin to staying hydrated during a long distance race, otherwise known as your career. It’s a necessary task to ensure you’ll have enough left in the tank (or bank account) when it’s time to settle down.

For retirement, you get what you put in; learn about some of the preparations you can make today to maximize your reward down the road.

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3 Reasons Bookkeeping Services for Small Businesses Yield Great Results

3 Reasons Bookkeeping Services for Small Businesses Yield Great Results

Business owners are typically jacks-of-all-trades, and in a competitive market, a versatile skillset is a key ingredient of success. Unfortunately, this means that some entrepreneurs end up stretching themselves too thin with responsibilities.

When one person is in charge of bookkeeping, marketing, and business growth, something’s got to give to ensure quality production and error-free work. Bookkeeping is an important responsibility no matter what industry you’re in, and it should always be a priority to complete it accurately and efficiently. Motl Accounting in East Dundee has a team of bookkeeping specialists to help Chicagoland’s small business community improve their company’s daily operations.

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3 Questions to Ask Your Payroll Provider

3 Questions to Ask Your Payroll Provider

If you’re a small business owner in Chicago or the northwest suburbs that have been considering using outsourced payroll services for your company, you’re sure to have plenty of questions that the Payroll Vault team at Motl Accounting in Dundee can answer. After all, payroll is an essential responsibility for every company, so it’s important to know that yours is in good hands. Still, the benefits of enlisting an external payroll provider often outweigh this uncertainty for small and medium-sized businesses. When it’s time to dedicate more time to grow your business and less on number crunching, here are three questions you should always ask when evaluating payroll providers.

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The Advantages of Using a Personal CPA to File Your Taxes

The Advantages of Using a Personal CPA to File Your Taxes

What’s your favorite season? At Motl Accounting in Dundee, our favorite is tax season. It’s the time of year when you should be thinking about the best way to complete your business filing. There are a number of ways to do your taxes, but a personal CPA for your small business like Charles Motl will provide the quality of service you should expect from a customized tax filing. Business taxes are an entirely different animal than your personal filing; they can be much more complex. The more complicated your taxes are, the more you need help from a professional to avoid those unexpected and tedious mistakes that will ruin the start of your year.
When you work with Motl’s certified public accountants, you know that the American Institute of Certified Public Accountants has qualified our professionals to practice in your state. This distinction means the accountants have passed a rigorous exam and have the experience to complete a professional tax return with accurate deductions on your behalf. Many businesses that we service have tried doing their taxes on their own before realizing how much they may be missing out by not understanding the complexities of deductions and taxations. We recently assisted a Photocopy business in Chicago by reviewing a statement they received and helped them save around $1800 dollars by taking a second look at the statement. It’s natural to panic when you receive notices from the IRS or State government, but we provide the peace of mind in such situations. That’s what we pride ourselves on. This among many reasons is why it’s advisable to go with a CPA rather than doing it alone. Read on for some of the strongest benefits.

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The Dos and Don’ts of Charitable Tax Deductions for Small Businesses

The Dos and Don’ts of Charitable Tax Deductions for Small Businesses

Tax season is underway for businesses across the country, which means it’s time to start thinking about any charitable tax deductions for small businesses you’ve made that can reduce your tax burden. One of the most commonly claimed deductions is for charitable donations — about 75% of small business owners allocate a portion of their profits to charitable donations. There are many reasons to support charities beyond tax savings. Giving back reminds business owners that they can make a positive change in the world, and it’s also great for a company’s overall reputation. Learn how to go about smart small business charitable giving before you take action.

Do: Find a cause that aligns with your business

While it’s great to donate to any cause you’re passionate about, there are extra benefits to donating to charities that align with or relate to your business. For example, if your company sells the majority of its products for mothers, it makes more sense to donate to a breast cancer charity than one for disaster relief. Your customers choose your business for a reason, and donating to causes they’re likely to care about is bound to get them excited.

Don’t: Fall for a scam

Unfortunately, there are plenty of charities that masquerade as good causes, when they’re actually scamming good-hearted people, so it’s important to do your research before you give any organization your money. Even with legitimate charities, the majority of your contribution may be going directly to administrative, overhead and marketing costs rather than what is advertised. You can find out if a charity is valid and how your money is allocated by specific charities on Charity Navigator.

Do: Decide how you can help

There are a variety of ways to support causes beyond one-time monetary donations. Volunteer work, event sponsorships, fundraising and donating goods are all ways to make an impact. Each type of contribution must be recorded and filed differently, so it’s worth working with an accountant to ensure you get the proper tax deduction. The type of charitable work you should do largely depends on time commitments, the enthusiasm of your employees to participate and budgetary considerations. Don’t overcommit yourself — it’s not worth the headache.

Don’t: Forget to involve employees

If you’re unsure what type of charity makes sense for your business, it’s a good idea to ask your employees what they think is a worthwhile endeavor. If they care about a certain cause, they are more likely to feel enthusiastic about your company’s direction and want to participate. It is a great way to retain talent for your business and improve workplace culture. In addition to these benefits, getting your employees to volunteer or participate in fundraising makes your company eligible for additional tax deduction benefits.

Do: Publicize to customers

There’s nothing wrong with bragging about doing a good thing! Your current customers are bound to have a positive reaction if your company is giving back. If you publicize your charitable efforts, you may even attract new customers who believe in supporting businesses with philanthropic behavior. While this might not bring direct tax benefits, more customers is good for your bottom line, which no business owner will complain about. Consider the positive PR that comes with giving.

Don’t: Ignore paperwork

When it’s time to file your tax deduction, there are some important things to remember. Be sure that your charity is eligible for a tax deduction by using the IRS search tool and learn about the limitations of each type of charitable deduction on the IRS charitable contribution topic page. You must report your charitable contribution on Form 1040 Schedule A of your taxes before the end of the business tax year. Remember that your deduction cannot amount to more than half of your adjusted gross income. Always have your records of charity contributions close at hand, in case of a tax audit.

Business owners benefit in many ways from charitable donations, so including them in your next filing is a worthwhile goal. We understand that choosing the right charities, keeping records of your contributions and filing tax deductions is a complicated process. If you are looking for a helping hand when you’re giving back, our team can assist you with our business tax services to help reduce your tax burden as much as possible. Contact us today to get started with tax savings.