Month: March 2022

Bookkeeper-vs.-Accountant

Bookkeeper vs. Accountant

โ€œSo why do I need a bookkeeper if I already have an accountant? Donโ€™t you guys do the same thing?โ€ Well โ€“ not exactly. ๐Ÿ˜‰ Hereโ€™s the easiest way to explain the difference: ๐Ÿฉบ A nurseโ€™s relationship to a doctor ๐Ÿค“ Is like a bookkeeperโ€™s relationship with an accountant. (And letโ€™s be real โ€“ EVERYONE knows itโ€™s the nurse who REALLY knows whatโ€™s going on with the patients, right? ๐Ÿ˜‰ ) So, thatโ€™s what the difference is. We will explain 3 reasons why itโ€™s important to have a year-round โ€œnurseโ€ for your finances and not just an annual โ€œdoctorโ€ appointment with your accountant. ๐Ÿญ- ๐—œ๐˜โ€™๐˜€ ๐—–๐—ต๐—ฒ๐—ฎ๐—ฝ๐—ฒ๐—ฟ ๐Ÿ’ฐ We know, we know, it sounds counterintuitive that hiring someone will SAVE you money, but itโ€™s true. A bookkeeper will help you:
Capture every tax-deductible expense (before you lose the receipt)
Prevent double payments
Increase your profit margin
Save you from late filing fees

Preparing-for-a-Business-Emergency

Preparing for a Business Emergency

Do you have an โ€œemergency savings fundโ€ for your business? ๐Ÿ’ต If you donโ€™t, maybe you genuinely like the idea of having one โ€ฆ but just donโ€™t know where to start. If thatโ€™s where youโ€™re at, then this post is for you. (๐Ÿญ) ๐—™๐—ถ๐—ฟ๐˜€๐˜, ๐˜„๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ (๐—ฎ๐—ป๐—ฑ ๐—ถ๐˜€๐—ปโ€™๐˜) ๐—ฎ๐—ป โ€œ๐—ฒ๐—บ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐˜†โ€ ๐—ฒ๐˜…๐—ฝ๐—ฒ๐—ป๐˜€๐—ฒ. Thereโ€™s a difference between an โ€œemergencyโ€ expense and an โ€œoverlookedโ€ expense. Forgetting about your quarterly property tax bill, or your annual accountant invoice โ€“ well, that doesnโ€™t count as an emergency. ๐Ÿ˜‰ Those are bills you can plan and budget for normally. An โ€œemergencyโ€ is something urgent and unpredictable, like a burst pipe in a building you own ๐Ÿšฐ (๐Ÿฎ) ๐—ช๐—ต๐—ฒ๐—ป ๐˜๐—ผ ๐—ฝ๐˜‚๐—น๐—น ๐—ณ๐—ฟ๐—ผ๐—บ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฒ๐—บ๐—ฒ๐—ฟ๐—ด๐—ฒ๐—ป๐—ฐ๐˜† ๐—ณ๐˜‚๐—ป๐—ฑ (๐—ฎ๐—ป๐—ฑ ๐˜„๐—ต๐—ฒ๐—ป ๐˜๐—ผ ๐—ต๐—ผ๐—น๐—ฑ ๐—ผ๐—ณ๐—ณ). Before you pull from your emergency fund, ask these three questions: 1 โ€“ Is this expense unexpected (and not just overlooked)? 2 โ€“ Is it necessary? (A cracked iPhone screen, if the phone still works, doesnโ€™t count!)

3 โ€“ Is it urgent? (Will the problem worsen, or will a vital opportunity be lost?)

The-Miracles-of-Bookkeeping

The Miracles of Bookkeeping

โ€œBUT WAIT! THEREโ€™S MORE!!โ€ Remember that TV sales guy back in the early 2000s? The one with the beard who was always yelling about the ๐˜ฎ๐˜ช๐˜ณ๐˜ข๐˜ค๐˜ญ๐˜ฆ of OxiClean? (Side note: what is it about those TV salesmen that made them believe that the LOUDER they yelled, the more likely you are to buy?) And not only could it get out impossible stains, but it was also such a MIRACLE product, the salesman made it sound like it could: ๐Ÿ›ข๏ธ Clean up the BP oil spill ๐Ÿ’ Improve your marriage. ๐Ÿงช AND split the freakinโ€™ atom! When really, at the end of the day: ๐Ÿงผ It was just laundry detergent ๐Ÿงผ We promise we are headed somewhere with this visual โ€“ show up tomorrow for this to start making some bookkeeping sense. LOL! Those goofy infomercials got us thinking about our bookkeeping business. So โ€“ hereโ€™s what we can honestly do to help you. No hyping, yelling or overpromising. Just facts:

โŒ Technically, yes โ€“ you can learn how to do your own bookkeeping and do it all by yourself without hiring anyone.

How-to-Get-Your-Accounts-Payable-to-Work-for-You

How to Get Your Accounts Payable to Work for You

How would you like to lower the stress level in your business? ๐Ÿ’ต ๐Ÿ‘‰ Then letโ€™s talk about your accounts payables first. I know, I know, itโ€™s a lot more exciting and fun to talk about your new clients and the money coming IN the door. But one of the easiest ways to de-stress your business finances is to manage the money going OUT the door. ๐—ฆ๐—ผ, ๐˜„๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ โ€œ๐—”๐—ฐ๐—ฐ๐—ผ๐˜‚๐—ป๐˜๐˜€ ๐—ฃ๐—ฎ๐˜†๐—ฎ๐—ฏ๐—น๐—ฒโ€? This is the money that is going out of your business ๐˜ช๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฏ๐˜ฆ๐˜ข๐˜ณ ๐˜ง๐˜ถ๐˜ต๐˜ถ๐˜ณ๐˜ฆ. When you receive an invoice, like from a vendor, that unpaid invoice is categorized as โ€œaccounts payableโ€ (basically, โ€œto be paidโ€). Then, once that invoice is paid, itโ€™s categorized as an expense. It can include things like utility bills, rent, and invoices from your vendors and subcontractors. (However, payroll is not included in this classification) What is your stress level when it comes to your accounts payable (money going out the door)?