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Looking for an organized way to manage your personal or business finances, and save time preparing various tax returns like Payroll, Sales Tax, and State and Federal Tax Returns?

Anyone, business or individual, can use QuickBooks for this purpose, and get organized with less paper and shoebox clutter.  We will customize the learning to You, whether a beginner or beyond. For the beginner we start with a few items like:

  • Easy Installation (The Wizard)
  • Homepage (The Roadmap)
  • Customize for your individual or business with preferences and settings
  • Create Invoices for Customers & Bills from Vendors
  • Basic Financial Reports

For those beyond, sessions will tailored to your specific questions.

Call  or Email Today for more information, or to get started with Your organized financial future. You work hard and deserve more freedom to choos how You use your time.

Weathering the Possibilities

Do you pay attention to the bright and sunny days and the cold, dark storm clouds brewing? Do you risk going out without checking? Do you do that with your business?

You probably heard it when you first thought about starting your business, “the lack of planning and control of financial resources is the top reason for the failure of many small businesses.” You owe it to yourself to develop a barometer to measure the potential success of your business.

The words planning, budgeting, and forecasting, or their derivatives, ought to be staples in your business vocabulary.

Financial reports, the Profit and Loss (Income Statement), Balance Sheet and Cash Flow Statement that are best created monthly, are indispensable for finance managers to produce budgets and forecasts. An added benefit, they are the radar that finds and isolates trends both good and not so good, allowing you to respond quicker and make mid-course corrections to your business’s advantage, to weather the times.

Our purpose and passion are genuine. We believe in You. Contact us, or go ahead and make an appointment today to a clearer economic path.

The Vitals, Heart of a Personal or Business Operation

Have you ever considered that accounting is the health sustaining organ of an operation, and that its health has an impact on success or failure? An operation will survive when there is sufficient cash flow, however, what about when expenses are exceeding the income for a prolonged period? Perhaps an analogy will help clarify this concept.

The human heart is divided into two flow systems, which continuously pump oxygen and nutrient rich blood to sustain life. The Income flow from the organs and tissues of your body enters the right side of your heart, pumps to the lungs to remove waste and recharge with oxygen, and returns into the left side of your heart. The flow then Expenses to all parts and organs, ensuring oxygen and nourishment for your body to work efficiently.

Finances also have two flow systems, Revenue (income) and Expense (outgo). To gain a better understanding of financial health, a tool is also used that helps identify where the transactions are going and that’s the Chart of Accounts (COA). Arteries and capillaries organize and direct your blood on a path to where it’s needed, the COA organizes your finances in a way so that you see how your cash flows, and determine if the income/outgo flow is healthy.

Independent of the operation type, size, industry, or structure all use a chart of accounts, generally organized the same with bank accounts, assets, liabilities, equity, income, and expenses. From there, the unique personal or business aspects will determine the necessary customization of the COA.

  • Bank: where cash is deposited (petty cash, checking, savings, mma)
  • Asset: bank accounts, accounts receivable, or other current assets (prepaid expenses or loaning money to someone for example), and fixed assets (major purchase like furniture and equipment).
  • Liability: accounts payable, loans or lines of credit, credit cards, security deposits from customer, sales or payroll tax.
  • Equity Account: track money invested in or money taken out by owners or shareholders.
  • Income: money earned from sales of product or service, residual income, commission.
  • Expense: categorizes money spent immediately during normal operations, not purchased as accounts payable (office supplies, rent, advertising, utilities, etc.).

Company finances can be very complicated, however, with the proper tools it is very possible to keep track of your operation’s health. Whether you are using the old-fashioned paper and pencil or using accounting software, it is vital to know where the money is coming from, and where it is going. Categorizing expenses properly gives insight into ways to adjust and improve health, and assists in getting every tax deduction entitled to.

As you would seek out professional advice to ensure that your body’s heart is functioning properly, consider the professional advice of a professional bookkeeper or accountant to safeguard the heart of your business.

To Your Health

Who’s Managing Who? Lassoing The Runaways

Sooo, how do you keep your finances organized? Shall I expect your reply to include a sour look and an attempt to change the subject real fast? Many would rather be stuck in a huge traffic jam or go sit in the dentist’s chair rather than think about organizing their finances. But the truth is, if your costs, both business and personal, are running amok… then perhaps you might be throwing money to the wild, or down the drain.

Have you ever been surprised by that pesky late fee, then again, and again in rapid succession? Have you ever complained to the credit card companies that you never received the bill, only to find months later it had fallen behind the desk?

The cost of disorganization is not only financial, it can waste time and take a toll on our mood (and the unknowing around us). Consider how much replacing lost tools, recreating lost files, or time putting out fires costs your business. And there’s more… consider the losses involved with forgetting to send invoices to customers, paying for overtime labor and dealing with employee turnover. Disorganization costs money and could lead to measurable losses in profitability. It is time to stop the stampede, break in and bridle!

The good news is that it only takes 5 simple steps to help lasso in your business costs. You probably already have heard of that nasty “B” word, budgeting?

  1. Figure out your monthly net income (if it fluctuates, take the previous 12 months divided by 12 for the estimated monthly)
  2. Figure your monthly fixed expenses (rent, utilities, lease, insurance etc.)
  3. Figure variable expenses – commodities that don’t have a fixed price tag each month (office supplies, groceries, repairs and maintenance, meals and entertainment etc.)
  4. Figure a monthly contingency or reserve expense for the unexpected (trust me the unexpected is inevitable)
  5. Review the budget versus actuals monthly and fine tune your numbers

Your budget is a very useful tool to help plan for near and far range, and be able to go the distance. You might think you lack the time to organize your expenses, however, a few hours of organization with a professional accountant/bookkeeper, could spur you on towards being knee deep in clover sooner than later.

Make today be the day for changing horses. Decide to run free and keep up with the finances monthly yourself, contract a professional to saddle up on a regular basis, and/or occassionally opt for a bookkeeping/accounting audit to know that you are on the right track. The important thing is to corral the dark days.

Run for the roses.  Unwrap your Daily Double by Contacting Us Here and sending a message.

Essential Financial Reports for Any Business

Whether you are a new start-up, or an existing business, there are (3) important financial analysis reports you should create  on a regular basis, especially if you are seeking funding for the business:

  • Profit and Loss Statement – This report shows you your income, your operating expenses, and the Net Income or Profit from all your hard work.  Analyzing this report regularly will show where you may be spending too much. 
  • Balance Sheet – This report shows your Assets such as  cash, accounts receivable, inventory, equipment, furniture, building, and land; your Liabilities such as short/long term notes, accounts payable,  taxes, and interest;  and your Equity in terms of invested capital, and retained earnings.
  • Cash Flow Statement  This report shows how your cash position changed over a period of time. It shows the amount of cash earned from profit, where you received additional cash, and where your cash was spent in terms of operating, investing and financing activities.

 Two documents that are particularly helpful for New Businesses are are the Start-Up Costs worksheet where you will estimate the capital you will need to open your doors,  and the Break-Even Analysis which will show the exact point where you will start making profit after covering all of your operating expenses.

You have many choices when selecting a bookkeeping service.  What sets us apart is our tenure of professionalism, passion for accountancy, believing in the value you provide the world, working with you to help you measure your business’ success.  We serve a broad range of business client types and sizes, with expertise in various accounting software platforms. Contact  MJB’s Bookkeeping Solutions today.