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Archives for August 2014

Why Your Small Business Needs Accounting Services

Small Business Accounting Services

Many small businesses struggle to make money. Business owners try to cut costs any way that they can. They need to, so that they can reach a profit faster. They might try to do everything themselves, without hiring any employees or outsourcing any jobs that they can do themselves. However, accounting services should always be outsourced, no matter the cost. There are several reasons for this.

If you outsource your accounting, you could spend more time making money. When someone else is worrying about your accounting, you can use that time on tasks that directly make you money.

An accountant can do the job much quicker you can, thus saving you money. If you spend four hours on a task that someone else can do in one hour, would you rather pay someone for an hour of work? Or would you rather struggle through it?

When tax time comes around, an accountant will already be prepared.   Especially if they have done your accounting all year long, they will be all set for taxes. You will not have to run around and find this paper and that log. Taxes will go much smoother.

Accounting is not something that you want to make mistakes with. Accounting affects your bottom line. Would you really want to make a huge error? An accountant will make sure that it is done correctly, all of the time.

An accountant will make sure that your business is staying on track. If you have a goal, an accountant will be able to keep you up to date on how you are performing. Are you getting behind and need to work harder? Can you afford to take a little break? Your accountant will know the status of your business at all times.

If you are serious about your business, you need an accountant. They will allow you to spend more time making money. You will also not have to worry about mistakes. They will already be prepared for taxes so that when the time comes, you will not have to stress out about it. If you are a professional, you need to treat your books that way.  Contact us today to get your accounting up to date and stress free!

 

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How the ECONOMY Impacts Your Medium Size Business and Your Accounting

Medium Size Business Accounting

As the owner of a medium size business you know that proper accounting is a very important aspect of your business.  You learned a long time ago that the best way to stay ahead of your competition is to control your costs and develop an economy of scale that new entrants to your market will not be able to easily duplicate.

Today, however, we are talking about a different kind of economy and that is the U.S. economy, where it is headed and how it impacts your business. Depending on which network or source you follow, the economy is either rebounding or mired in flat growth.

Here are two contrasting views of the economic recovery.  Again, it really does not matter what “they” are saying, it is how you react and what you do about it that matters.

According to this article in the Wall Street Journal, the economy may be poised for a recovery:  “After four bumpy years, the U.S. recovery finally appears to be on a smoother road. Many economists now predict 2014 will be the best year for growth since 2005, while joblessness is expected to click below 7% next year for the first time since 2008. Houses are selling again, the energy sector is booming and jobs, while not plentiful, are being created at a steady pace.”  

Yet in this Opposite View, Economists Dean Baker from CEPR and Robert Pollin from PERI say that “the U.S. economy remains weak 5 years after the recession despite recent job growth, due to low wages and weakened unions.” 

Probably the best way to view is as what we have come to know as the “New Normal” and how your react to is as a business owner will chart the course for the future of your business.

For most of us on main street, recovery seems hard to understand.  We have definitely not returned to anything approaching the explosive growth prior to 2001 or 2008.  Two catastrophic events, one terror related and the other a financial melt down has taken its toll on main street.

If you experienced losses during and after those difficult times, your accountant has certainly created a write off scenario that is helping some, but there are only so many write offs!  What you need is positive and profitable growth!  If you have not reviewed the past several years with your accountant, mid year is a good time to do that.

Review your numbers with growth in mind rather than taxes.  Try to spot trends comparing this year to previous years.  What segments of your business are growing and which ones are not?  Where are costs rising and what can you do about it. A good accountant working with medium sized companies knows there is much more to accounting than taxes.

They know accounting is the language of business and the best way to “keep score.”  They also know that future opportunities are often hidden in the numbers of the past so work with your accountant to find ways to win no matter what the economy is doing.

If you would like a new perspective on your business, please contact us. We are A & B Accounting and Business Solutions and we help our clients grow in the best of times and in the worst of times.

 

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