As the COVID-19 pandemic has raged across the U.S.
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Financial fraud is rampant around the world, but citizens of the U.S. have arguably experienced more than their fair share due to our reputation as a wealthy country. Simply by being a U.S. resident, your odds of being targeted for financial fraud may be higher than if you lived in a second or third world country. And, while technology has added much to our lives, it’s also opened doors to hackers and other nefarious criminals whose sole mission is to come up with devious plans to part you from your money.
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The volume and importance of your accounts receivables balance varies significantly by business type. A hair salon where customers pay at the time of service likely doesn’t have a large amount of accounts receivable. A manufacturing company that ships product before payment, and extends generous payment terms, likely has a
If extending terms, sending invoices, and waiting for payment impacts your cash flow, it’s important that you develop a system to manage your accounts receivable.
Creating a System
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Whether you are a business owner or an individual, meeting with your CPA is of course important when it comes to your taxes or other financial matters. However, even if you consider yourself to be well-versed in accounting, there are usually a few terms tossed your way that may leave you confused. Rather than sit there and continue to wonder what it is your CPA is talking about and how it will impact your situation, here are 15 of the most common accounting terms explained in easy-to-understand language.
1. Book Value
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If there is one thing you as a taxpayer want to avoid, it is being audited by the IRS. While the chances of it are usually very slim, there are certain red flags that do get the attention of IRS officials now and then. Whether it is tax returns for individuals or those connected to a business, an IRS audit will be very detailed, time-consuming, and could potentially lead to criminal charges being filed against you, depending of course on the alleged violations.
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People become small business owners through several methods. Some inherit a family business when a parent or relative retire. Others launch an innovative new product and find themselves running a company without ever planning on it. But for some, those with money to invest upfront, they intentionally enter the small business world by becoming a franchise owner.
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For some businesses, the COVID-19 pandemic changed things overnight. Employees went home with their laptops and some haven’t returned to the office in over a year. What people thought would be temporary is looking very permanent.
Corporations have closed headquarters and terminated their leases early, and one survey of small business owners found that only one in five plans to reopen their physical store. As you think about the future, do you need an office?
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Your customers are the lifeblood of your business. You exist to provide them with the products and services that fulfill their needs, and your success depends on how well you identify and meet those needs. But your customers are not a monolith.
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Parents and guardians who care for one or more children should know how valuable the child tax credit is. This tax credit is available for qualified filers who have a child under the age of 17. Since it was enacted in 1997 and since then has helped millions of people with the costs of rearing a child. Up to $2,000 is now available per child. The new administration is hoping to expand the child tax credit, on a temporary basis as part of a COVID-19 relief plan.
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Many businesses are still struggling due to the financial restrictions imposed due to COVID-19. The severely reduced income combined with ongoing payroll responsibilities has led to many businesses having to shut down entirely. Those that are left standing are hanging on by a thread. Yet, hope is on the horizon. The “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” was recently passed by Congress. This Act reauthorizes the original PPP (Paycheck Protection Program) loans that came to an official end in August of 2020.
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Your business’ assets are one of its greatest strengths. They support your day-to-day operations, can collateralize a loan, and could manufacture inventory. It’s important to track and account for them accurately.
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Maximizing customer value is an important part of maintaining and growing your business. Your customer value proposition is what keeps existing customers happy and brings in new business. Without a clear value proposition, you may have difficulties marketing yourself to new customers.
So, what if your customer value proposition? And how do you maximize it for better results?
What is your Customer Value Proposition?
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If you are like many people, you are thinking about what may be ahead as you near retirement. Whether you are within a few years of retirement or still have decades to go, contributing as much as possible to your retirement plans can pay off big in the years ahead. But as you know, the contributions to various plans can change from year to year, so it's important to know what you can or cannot do regarding your 401(k), IRA, or other plan. As we now get 2021 underway, here are the contribution limits for various plans of which you should be aware.
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If you own a small business, you know how important it is to support various charitable causes, both within your own community and throughout the world. But as you know, there are always changes related to your taxes and how your charitable donations may be done from one year to the next. As 2021 begins, it is important for you to be aware of several changes to charitable donations, some of which have been done so via the CARES Act passed by Congress in 2020. If you are a small business owner and make it a priority to provide charitable donations each year, here is what you
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According to the Association of Certified Fraud Examiners, businesses lose 5% of their annual revenue to employee fraud and abuse. Businesses with fewer than 150 employees—are the most vulnerable to employee fraud. They lack the resources to absorb losses.
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Its year-end review time at many companies. Instead of dreading it, or worrying about giving negative feedback, why not turn it into a chance to improve morale and engagement? You can do this by including a professional development plan with your review.
Losing employees impacts your bottom line. You could have to hire a recruiter to find their replacement, there will be lost productivity while you train the new person, and if they have been disengaged for a while you may find that their past work wasn’t up to par.
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As a business owner, tax season is probably not a time of year you look forward to each time it rolls around. However, you also know that getting your taxes completed and filed as easily and quickly as possible will make your life much easier in the months ahead. Unfortunately, many business owners get so caught up in other activities during the year that they fail to have their records properly organized prior to meeting with their CPA. As a result, tax filing becomes more difficult than necessary. Without various receipts and other documentation, you as a business owner could ultimate
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When the time comes and you decide to hire someone to work for you as a housekeeper, nanny, caregiver, or similar job at your home, it’s vital that you understand the tax implications associated with such arrangements. While some people who are employers in these situations don’t pay attention to the tax side of things, this is a mistake that may lead to stiff penalties from the IRS. Rather than create this situation for yourself, here is what you need to know when hiring household help.
Employee or Self-Employed?
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As any bookstore owner who’s heard a customer say, “That’s okay, I’ll order it on Amazon,” when a book is out of stock can tell you - supply chain management can make or break a small business. Supply chain management is the flow of input materials, finished goods, or services, through your business. It’s particularly important for businesses that produce or carry physical inventory.
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It can be difficult to attract talent during the start-up phase when you can’t necessarily offer the larger salaries and bonuses of a more-established company. Many start-ups turn to offering employee equity plans that increase the attractiveness of working for them. But there are downsides to diluting your equity and managing an equity plan.
If you’re a startup struggling to build the professional team you need to succeed, here are some of the pros and cons of launching an equity plan.
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Webinars are more popular than ever, thanks to restrictions on in-person social gatherings. You may be planning on hosting a webinar for your own business or as an employee. Whatever the reason for your business webinar, there are some things you can do to ensure that it’s a success. Success would mean that you looked professional while hosting the webinar, that the webinar itself went off without a hitch and that others found the content useful. Here’s how to make that happen.
Do a Dry Run
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With every business decision that you make, you probably try to calculate how much money you’ll need to spend versus how much money you could save. If you’re considering finally hiring a CPA, you should know that a CPA helps to save you money in many different ways. And, if you already have a CPA, you should know that they are definitely earning their keep. Following are nine ways that a CPA helps save you money, no matter what size business you have.
1. Avoiding IRS Penalties
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Did you know that your business has a credit score? It’s similar to your personal credit score - it tracks missed and late payments, if you’ve defaulted on loans, and your business’s assets and liabilities. But unlike your personal credit score, it’s not compiled by a credit bureau. People pulling your business’ credit score most commonly pull it from a company called Dun and Bradstreet.
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If things work out the way they are planned, you may be receiving a second stimulus check in the coming weeks. Nothing is yet guaranteed, but there are certainly plenty of people who are banking on getting a financial boost from the government during this COVID situation. Any money that may be forthcoming won’t be life-altering, but there are smarter ways than others to use your next stimulus check.
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Since a lot of employees are working from home now, it makes sense that employers are looking for efficient ways to track employee time. Even though employees do have more autonomy over their working time, you still need to ensure that you’re not paying for excess idle time. Most professionals can be trusted to work when they’re supposed to, but there will always be some people who try to take advantage of the working from home situation. Following are some considerations to keep in mind and some ideas about various ways to track employee time.
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Do you know how much inventory is in your warehouse right now? If the answer is a shrug, you would do well to learn about inventory management. Businesses which rely on the sale of physical goods must learn how to manage the flow of those goods in and out of their warehouse.
What is Inventory Management?
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Whether you’re big or small, putting together a PR strategy pays off in multiple ways. A press release that a reporter turns into an article could send new customers to your door. Having a good reputation in your community strengthens your business’ sales and longevity. And good relationships with the media result in free publicity and building your reputation as experts in your field.
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When making staffing decisions, it’s important to consider all the variables. You may be hiring support growth, or bring in new clients. Other times, the role in a cost center, and you’ll need to evaluate if existing revenues can support added costs.
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For many companies, personnel and personnel-related costs represent the biggest chunk of their expenses. During this pandemic, companies of all sizes have had to take a closer look at their personnel costs to see where cuts can be made. This has resulted in millions of people losing their jobs. But what if there were alternatives? Maybe your company doesn’t need to lay off as many people as you might have thought, in order to survive.
1. Switch Full-time Employees to Part-time
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Companies large and small are struggling in this age of COVID. In Chicago alone, an estimated 4,000 small businesses have shuttered. The Washington Post reports that over 100,000 small businesses nationwide have “closed forever.” And it’s not over yet.
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