Maybe you hate spending your Saturdays in spreadsheets, or maybe you hit a few major milestones and are outgrowing your current system. Regardless of what’s driving you to outsource your accounting, there are a few factors you must take into account during this transition.
Seasonality is a common experience many businesses face when they’re building out their budget. There are obvious examples in the form of tanning salons and ice cream shops to tax firms and event space venues, but even a digital agency or SaaS startup can experience high and low points in cash flow throughout the year.
Here’s a few tips on how your business can plan for seasonal slumps and take advantage when business is booming.
Innovative companies across industries have always been able to apply for valuable Research & Development Tax Credits based on qualified activities and personnel working toward developing new products and technology. However, startups and other pre-profit businesses—who don’t have much (or any) income tax liability—couldn’t justify applying for the credit as a priority... until now.
Fluctuating cash flow is a challenge that every small business faces at one point or another. Whether it’s buying supplies for an unexpected big order or compensating for a slow-paying customer, the ebb and flow of finances is par for the course of being in business, and a short-term loan is a viable solution when you are strapped for cash.
Many business owners I talk to aren’t necessarily cut from the traditional entrepreneurial cloth. After all, we can’t all be 12 inventor/business moguls like Moziah Bridges of Mo’s Bows. More and more startups are being led by founders that come from working backgrounds at other startups, traditional businesses, and even large corporations. Part of breaking free to start something of their own is the freedom of self-employment.
Business owners often find themselves in hot pursuit of working capital for their organization. While there are many ways to go about this, one option that does not get covered quite as often are merchant cash advances. They can be a beneficial type of additional capital to pursue, especially if your business makes the majority of its sales through credit cards. With this form of working capital, a lender will essentially pay you a lump sum upfront. In return, the lender receives a portion of each sales transaction made using a credit or debit card directly from the credit processor until the amount is paid back.
If you or your business made or received a payment during the calendar year as a small business entity or self-employed individual, you are required to file an information return to the IRS. A 1099 form is what you’ll use to communicate that income information to tax authorities and submit to your contractors so they can do the same. While you may be most familiar with Form 1099-MISC, there are actually other types of 1099s and each one has a different purpose.
Starting your own company in a world where new businesses pop up around every corner is certainly not an easy thing to do. You have to be unique; you have to be innovative; you have to know exactly what your audience wants; you have to know the exact time of year when they are most likely to contact you… The list of things you have to know seems to be endless. Therefore, saying that becoming a fully-fledged business from a small startup is an astonishingly difficult task would be an understatement.
Metrics equal money. This goes beyond ad impressions, website clicks, and form fills. In order to make the best decisions that impact your retail business’ bottom line, you need the ability to derive actionable insights from a full scope of business data. The first step to leveraging this data is understanding the key metrics that inform it.
The tools you use quickly become the backbone of any successful modern business strategy. Paired with the right team, great business tools will help your company reach its full potential. Trying to leverage the wrong ones will make it impossible for you to enhance internal productivity and increase ROI. If your tools do not deliver what you need, this is the price you will really pay.