For the Love of Business

Most people only think of their accountant as tax season appears on the horizon. As a business owner, however, you can net the benefits of working with this professional year-round by taking full advantage of the available service options. Accountants offer much more than tax prep alone, though that is an important part of their service list. You can acquire help with structuring your business, budgeting your funds and creating your documents as well. Read on to learn more. S

When you decide to allow clients to utilize credit accounts for their purchases, you must clearly define the payment terms to avoid ending up swamped in bad debt. The payment terms must cover every aspect of the payment process in great detail to eliminate all wiggle room. Otherwise, your company’s finances could become tied up in open debt, leaving you without liquid funds needed to operate your business. Here are the areas to pay close attention while establishing your paym

You can keep your company’s cash flow levels stable by offering the right combination of credit payment terms. When you extend credit options to your clientele, you build lasting financial relationships and open the doors for revolving transactions. You must appropriately select the right terms for your company, however, to prevent bad debt accumulation from hurting your bottom line. Here are the terms you may choose for your business operations. If your clients routinely pur

Your clients’ pending debts, listed on your accounts receivable reports, directly reflect your company’s cash flow status. Although you will likely collect most of the owed funds, a portion will turn into doubtful or even bad debts. These indicators allow you to update your accounts receivable records to better show the financial wellness of your company. Once you confirm pending debts are uncollectable, you can write them off on your taxes. Here’s what you need to know about

When you only accept cash or debit based transactions for your products or services, you reduce the chance of building up bad debt over the course of the year. Unfortunately, you also run the chance of losing out on higher volume sales figures. Clients expect to be able to whip out their credit card and make a purchase on a whim. When the attempt is blocked by a lack of credit support, they may take their dollars elsewhere. You must weigh the overall costs of accepting credit

While operating your small business, you have the ability to choose between cash and accrual accounting practices. The IRS recognizes both of these accounting practices as valid ways to track income and expenses. The difference lies in the way accountants record the line items while tracking the financial status of your company. Here’s what you need to know before choosing between these two accounting methods. Accrual Accrual accounting is the method chosen most often by smal

If you have a dedicated employee handling your day-to-day bookkeeping, you may initially dismiss the idea that an accounting professional is needed for your small business. As your business grows and thrives, however, there will come a time that an accountant is required to perform the financial calculations you need for continued success. When you hire an accountant, you may need to invest in one, or many, different services that help your business grow in your ever-changing