The construction industry has always faced extra scrutiny by the Internal Revenue Service. The industry is known for misclassifying employees, under-reported income and cash transactions. Considering that the IRS has new technology and has added staffing, the risk of audit could increase over the next few years. TMD Accounting understands that receiving a notice that you are being audited by the IRS can be stressful. As a South Jersey accountant, we know that errors can lead to penalties are fines which is why we offer these tips for preparing for the audit.
What May Trigger an Audit
Although anything may trigger an audit of your income tax returns, there are some items that are commonly viewed as red flags, according to small business accounting services. If your return includes large deductions or losses that seem substantial, it may be flagged by the IRS. Large cash deposits or payments are another factor that might encourage the IRS to take a closer look, according to a South Jersey accountant.
The IRS allows you to hire contractors in any business, but there are very strict rules about when someone is classified as an employee and when they are classified as a contractor. An independent contractor cannot perform services that are controlled by the employer. For example, if you tell someone what hours they must work or how a job must be done, it is likely they are an employee not a contractor. If you control the details of how services are performed, that person is an employee. Some questions to ask when determining how to classify an employee include:
Do you control how an employee does his or her specific job?
Do you control how a worker is paid?
Are expenses reimbursed by you or someone else?
Who provides the tools to do the job?
Is there a written contract between you and the employee?
Does the employee receive vacation, sick time, health insurance or other benefits from you?
Probably the biggest question to ask, according to most South Jersey accountants, is whether the work is performed as a key aspect of the business. For instance, a painter who provides services is performing a key aspect of a construction business, but if that person has a contract and you use multiple painters for your projects, they are likely not an employee. However, a painter who has no contract and who does all the painting for your construction business may be viewed as an employee by the IRS, TMD Accounting explains.
Be Proactive
Of course, one of the best ways to avoid an audit is to be sure to have processes in place that guarantee your records are accurate. If you have questioned “do I need an accountant for my small business” after attempting to do your own taxes, the answer is likely yes as a South Jersey accountant can help you create processes that may help you avoid problems with the IRS in the future. Even if you decide to hire an accountant, you will still need to organize your records.
Invoices, receipts, contracts, bank statements should all be easily accessible and identifiable. You may also need time cards, documentation of change orders and information about withdrawals of materials from inventory if you have any. Having your records organized can ease the pressure of the audit as all the information you need will be in one location.
I Got an IRS Letter! What Do I Do?
If you already realized “I think I should hire an accountant for my small business” and that accountant filed your taxes, the first thing to do is to contact them with information about the letter. If you filed your own taxes, the first thing you do not want to do is panic. The letter you receive will have the information the IRS is checking, but it may not be completely clear. It is very important to remember that the IRS always contacts taxpayers by mail, never by phone, email or text. Often, the audit can be resolved by mail with no need to meet in person.
There will be details about who the auditor is on your case, so it is always a good idea to remain in contact with them about the process. You and your financial team should be available to answer any questions and provide documentation requested. Small business accounting services also recommend explaining any errors you may have discovered on your return that you were unaware existed until the audit letter arrived. This can go a long way toward resolving the matter quickly and easily.
Looking to Hire a South Jersey Accountant?
If you have been asking yourself “should I hire an accountant for my small business,” the answer is likely yes. It is highly recommended that construction companies hire a South Jersey accountant to hand all their small business accounting services, especially when it comes to filing tax returns.
Because the nature of the construction industry lends itself to IRS questions, using a South Jersey accountant like TMD Accounting is one of the best ways to help avoid an audit. If you are already facing an audit, our amazing team can help you determine what the IRS is looking for and possible save penalties and fees by addressing the questions the IRS is asking. Schedule an appointment today by calling 1-856-228-2205.
Healthcare professionals go into business to help others with their medical issues, not to balance checkbooks and pay bills. Spending your time sitting at a desk looking at financial information is likely not one of your favorite duties, but it is a fact of life that your staff must get paid, your creditors must receive payment and your finances need to be in order, especially when it comes to tax filing. TMD Accounting Services is here to help as your medical accounting service.
Understanding the Unique Financial Challenges in the Healthcare Industry
When it comes to healthcare accounting, there is no question it can be confusing, complicated and stressful. There are more factors involved in accounting for your medical practice than for most small businesses. You not only need to be sure to account for payments from your patients, but you also deal with insurance companies as well as federal agencies like Medicare and Medicaid whose regulations are constantly changing. This is where a healthcare accounting can help. There is no question that the healthcare industry has complicated revenue streams and reimbursement models, and our experts can help guide you through the process.
The Role of Healthcare Accounting in Supporting Healthcare Providers
TMD Accounting has over 40 years’ experience in accounting and financial management for a wide range of industries, including the medical field. As a medical accounting service, we offer tailored solutions for revenue optimization and expense control. In addition, we offer medical billing and revenue cycle management along with preparation and analysis of financial statements. Because tax preparation and planning can be complicated with healthcare accounting, we help your practice prepare for that necessity as well. We can also assist with financial decision-making that can help grow your practice.
Billing Patients and Insurance
Although the increased use of electronic forms has made it much easier to manage patient information, billing is not quite as simple. There are many components to medical billing today, including insurance regulations, federal guidelines and the needs of a patient that may make billing a bit more complicated. An error in insurance billing could result in a denied claim, even if the error is minor. Although electronic billing is now an option, many patients still prefer to receive the bill in the mail, even if they are able to make a payment online.
You also must deal with patients who are unable to pay their bills or who pay them late due to financial issues. Keep in mind a denied claim could mean you must bill the patient more than they expected, leading to additional delays in payment as both you and the patient try to navigate the complicated world of health insurance.
Medical Collections
One area that most medical professionals do not want to discuss is the fact that they will have to collect money from patients. Although healthcare providers understand that medical issues can occur suddenly and that there is often no way to prepare for the added expense of an emergency, the fact remains that you need to receive the money owed to you in order to keep your staff employed and your office running. Although you likely are willing to work with patients who are struggling financially, there are times when you simply must take additional actions in order to receive payment. That is where our experts can assist your practice. We can help you create a viable collection procedure that may reduce the delay in payments and help keep your cash flow positive.
Financial Statements by Medical Accounting Service
Like every business, healthcare professionals must complete standard accounting financial statements. Our medical accounting service can assist you with completion of cash flow statement, balance sheets, income statements and more. We can also review your cash flow, receivables, payables, expenses, revenue and liabilities to see where you might be able to reduce costs and increase income. We can also help you understand those reports so that you can make better decisions about your practice. You are responsible for monitoring the health of your patients, so it is advisable that you choose an expert to monitor the financial health of your practice.
Medical Practices and Accounts Receivable
One of the most important accounting requirements is management of accounts receivable. It is this financial tool that will provide you with positive cash flow. If you don’t have a positive cash flow, paying bills is more difficult and this may include paying your employees. You may have an established billing team in your practice, but working with healthcare accounting experts can give them additional tools that they may be unaware exist. You may also be able to streamline processes to free some of your staff of the billing matters so they can focus on other aspects of your practice.
Compliance and Regulation
A medical accounting service can also help you with a critical part of the business end of your practice – regulation and compliance. There are strict rules regarding patient privacy under the Health Insurance Portability and Accountability Act (HIPAA), a federal law designed to protect patient information. In addition, there are many compliance and regulatory rules related to Medicare, Medicaid and insurance, something a medical accounting service can assist with.
Key Services Provided by our Healthcare Accounting Service
As your medical accounting service, we offer expertise in healthcare accounting and financial management. Our focus is on creating solutions tailored specifically for your medical practice that will optimize revenue and help you gain better control of your expenses. Because we are well-versed in the importance of compliance in this industry, we can provide you with guidance and advice on how to be sure you are reporting properly and complying with the requirements that will keep your practice running smoothly. Because we proactively monitor and analyze your finances, you can rest easy knowing that the financial health of your practice is being handled by experts.
Running a small business involves many financial tasks and responsibilities. Many small business owners turn to professional accountants to ensure accurate financial management and tax compliance. With that in mind, here is your ultimate guide to finding a small business accountant in New Jersey.
The Role of a Small Business Accountant
While some individuals may not want to spend money on this professional service, hiring a small business accountant is vital for effective financial management. It can be difficult to handle all of these responsibilities on your own. A small business accountant takes on the essential task of maintaining accurate and well-organized financial records. Their primary responsibilities include:
• Recording financial transactions
• Reconciling bank statements
• Tracking accounts payable and receivable
• Preparing financial statements such as balance sheets and income statements
An accountant can analyze financial data and provide meaningful insights to help you make informed decisions. These professionals can identify trends, spot potential financial risks or inefficiencies, and offer recommendations for improvement.
NJ small business accountants can assist with budgeting and forecasting. Developing a comprehensive budget and accurate financial forecasts are essential for small business’ success. They can create realistic budgets and forecasts based on historical data, market trends, and business goals.
Why Choose a Local Accountant in NJ
There are several advantages to hiring a local New Jersey accountant. They possess knowledge of the local business environment, are well-versed in state-specific tax regulations, and understand industry-specific challenges. In addition, the convenience of face-to-face meetings and access to local networking opportunities contribute to a more personalized and efficient financial management experience for your small business. Let’s take a deeper look at these benefits of working with a local accountant.
First, a local accountant in New Jersey has first-hand knowledge of the local business landscape firsthand. They understand the state’s economic trends, market conditions, and unique challenges. This familiarity allows them to provide tailored financial advice and strategies that align with the unique needs of your business.
Tax regulations vary from state to state, and New Jersey has its own tax laws and requirements. Hiring a local accountant ensures you have a professional well-versed in the state’s tax regulations. They can help you navigate complex tax codes, maximize tax deductions, and comply with New Jersey tax laws.
Different industries have their financial intricacies and challenges. Whether you operate an automotive shop or offer healthcare services, you can benefit from a local accountant’s understanding of your industry’s specific challenges and opportunities.
Working with a local accountant allows for face-to-face meetings, fostering a more personal and collaborative relationship. In-person interactions provide the opportunity to discuss financial matters in depth, ask questions, and receive immediate feedback. This level of personalized service can lead to a better understanding of your business’s financial goals and enable the accountant to offer more tailored advice.
Local accountants in New Jersey often have established networks within the business community. They can introduce you to potential partners, clients, or resources that can benefit your business through their connections. These networking opportunities can open doors for collaborations, referrals, and other mutually beneficial relationships that can contribute to your business’s growth.
Whether you need contractor accounting services or an outsourced restaurant accounting professional, hiring a local team means having easy access to all of their services. A local accountant is always there to provide support and ensure a quick response time, enabling you to address financial issues promptly and effectively.
Qualities to Look for in a Small Business Accountant
Several important factors must be considered when selecting an accountant for your small business. First, you will want to find individuals with the necessary qualifications and certifications, such as the Certified Public Accountant (CPA) designation. This designation highlights their expertise in accounting and adherence to professional standards since they have passed rigorous exams and often continue their education to stay current on accounting principles and practices.
You also want to look for an accountant with relevant experience working with small businesses, preferably in a similar industry. A track record of helping small businesses can provide valuable insight and expertise to help you navigate financial challenges and make informed decisions.
Effective communication is also critical when working with an accountant. Look for someone who can explain complex financial concepts clearly and understandably. A good accountant should actively listen to your concerns, ask relevant questions, and provide accurate and concise explanations to ensure that you understand the financial status of your business.
Additionally, a proactive and analytical accountant can add significant value to your small business. They should proactively identify potential financial risks, suggest improvements, and offer strategic advice. A solid analytical mindset allows accountants to analyze financial data, identify trends, and provide meaningful insights to help you optimize your financial performance.
Finally, trust is crucial in any professional relationship, especially when handling your business’s finances. You should get recommendations and read client testimonials to find an accountant with a solid reputation for trustworthiness and reliability. A reputable accountant will prioritize your business’s best interests and maintain the highest level of professionalism and confidentiality.
If you’re a small business owner in NJ, you know how important it is to have a reliable and professional accountant by your side. You need someone who can handle your taxes, bookkeeping, payroll, and financial planning with accuracy and efficiency. You need someone who can advise you on the best strategies to grow your business and save money. You need someone who can be your trusted partner and ally.
But finding the best small business accountant in NJ is not easy. There are many accountants out there who claim to be experts, but not all of them have the experience, expertise, communication skills, and trustworthiness that you deserve. How do you know who to choose? How do you know who can deliver the results you need?
That’s where we come in. We are TMD Accounting, a team of certified public accountants who specialize in serving small businesses in south jersey. We have over 20 years of experience in helping small businesses like yours succeed in their industries. We offer personalized and customized accounting services that fit your specific needs and goals. We work with you as a partner, not just a vendor.
In this post, we’ll show you why we are the best small business accountant in NJ for your industry. We’ll explain what sets us apart from other accountants, how we tailor our services to your industry, and how you can get started with us today.
How NJ Small Business Accountants Can Help You Save Time and Money
One of the main benefits of hiring a small business accountant in NJ is that they can help you save time and money. As a small business owner, you have a lot on your plate. You have to manage your operations, marketing, sales, customer service, and more. You don’t have time to deal with the complex and tedious tasks of accounting.
By outsourcing your accounting to a professional, you can free up your time to focus on the core aspects of your business. You can also save money by avoiding costly mistakes, penalties, and fees. You can also benefit from the expert advice and guidance of an accountant who can help you optimize your tax situation and financial performance.
Why You Need a South Jersey Accountant to Handle Your Taxes and Finances
Another reason why you need a small business accountant in NJ is that they can handle your taxes and finances better than you can. Taxes are complicated and constantly changing. You need someone who knows the latest tax laws and regulations that apply to your business. You need someone who can help you plan ahead and minimize your tax liability.
A small business accountant can help you with all aspects of tax planning and preparation, such as:
Choosing the best legal structure for your business
Determining the best accounting method for your business
Identifying and claiming all the tax deductions and credits that you qualify for
Filing your federal, state, and local tax returns on time and accurately
Paying your estimated taxes throughout the year
Dealing with any tax notices or audits from the IRS or other authorities
A small business accountant can also help you with your financial management, such as:
Setting up and maintaining your accounting system
Reconciling your bank accounts and credit cards
Recording and categorizing your transactions
Generating and reviewing your financial statements
Monitoring your key performance indicators
Evaluating your profitability and growth potential
A small business accountant can help you understand your financial situation better and make informed decisions for your business. They can also help you secure financing or funding from lenders or investors by preparing professional financial reports and projections.
How We Tailor Our Services to Your Industry
We know that every industry has its own unique characteristics, opportunities, and challenges. That’s why we don’t offer generic accounting services; we offer customized accounting services that match your industry needs.
We serve a variety of industries in south jersey, including:
At our firm, we specialize in assisting automotive shop owners with a comprehensive range of accounting services designed to meet the unique needs of your automotive business. We understand the intricacies of the automotive industry and the specific financial challenges you face. Here’s how our tailored services can benefit your automotive shop:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with tax laws.
We take care of your payroll processing, ensuring timely and accurate payment to your employees.
Our financial reporting provides you with clear insights into your shop’s financial health and performance.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools specifically tailored to the automotive industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations.
Inventory Management, Cost of Goods Sold (COGS), and Depreciation:
We help you effectively manage your inventory, ensuring efficient stock control and minimizing waste.
Our team calculates the cost of goods sold (COGS) accurately, allowing you to understand your profit margins better.
We assist you in managing depreciation for your assets, optimizing tax deductions and improving cash flow.
Sales Tax, Excise Tax, and Other Industry-Specific Taxes:
We navigate the complex landscape of sales tax, excise tax, and other industry-specific taxes on your behalf.
Our team ensures compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you maintain a healthy cash flow by implementing effective cash management strategies.
Our team assists in creating budgets and financial forecasts, allowing you to make informed business decisions.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to help you compare your shop’s performance to industry standards.
Our expertise allows us to offer recommendations and insights to improve your operational and financial efficiency.
As experts in accounting for construction contractors, we understand the unique financial intricacies and challenges faced by your industry. Our specialized accounting services are designed to address these specific needs and help your construction business thrive. Here’s how our tailored services can benefit your construction contracting firm:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your construction projects.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with tax laws specific to the construction industry.
We take care of your payroll processing, ensuring timely and accurate payment to your employees and subcontractors.
Our financial reporting provides you with clear insights into the financial performance of individual projects and your overall business.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to the construction industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and project management.
Job Costing, Change Orders, and Progress Billing:
We help you accurately track job costs, including labor, materials, and overhead expenses, to ensure project profitability.
Our team assists with change order management, ensuring proper documentation and accounting for additional project scope.
We provide guidance on progress billing, enabling you to invoice clients based on project milestones and achieve consistent cash flow.
Contractor Licenses, Bonds, and Insurance:
We assist with navigating the complex landscape of contractor licenses, bonds, and insurance requirements.
Our team ensures compliance with regulatory obligations, minimizing the risk of penalties and legal issues.
Sales Tax, Use Tax, and Other Industry-Specific Taxes:
We handle the intricacies of sales tax, use tax, and other construction industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively by implementing strategies tailored to the construction industry’s unique payment cycles.
Our team assists in creating budgets and financial forecasts, allowing you to plan and allocate resources effectively.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your construction business’s performance.
Our expertise allows us to offer recommendations and insights to improve your operational and financial efficiency.
By leveraging our specialized knowledge and experience in accounting for construction contractors, you can focus on delivering quality projects while having confidence in the financial management of your business. Contact us today to discuss how our tailored accounting services can benefit your construction contracting firm.
We understand the unique financial and regulatory challenges faced by healthcare practitioners and medical practices. Our specialized accounting services are designed to address these specific needs and help your healthcare practice thrive. Here’s how our tailored services can benefit your practice:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your medical practice.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with healthcare industry-specific tax regulations.
We take care of your payroll processing, including managing physician compensation and tracking employee benefits.
Our financial reporting provides you with clear insights into the financial performance of your practice, including revenue streams, expenses, and profitability.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to the healthcare industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and enhance patient billing and collections.
Revenue Cycle Management, Billing, and Collections:
We help you optimize your revenue cycle management, ensuring accurate coding, timely billing, and effective collections.
Our team assists with patient billing, insurance claims, and reimbursement processes, minimizing revenue leakage and improving cash flow.
Medical Coding, Compliance, and Audits:
We provide guidance on medical coding practices, ensuring accurate documentation and compliance with coding standards.
Our team assists with compliance audits, helping you prepare for and navigate regulatory inspections and requirements.
Sales Tax, Payroll Tax, and Other Industry-Specific Taxes:
We handle the complexities of sales tax, payroll tax, and other healthcare industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively, considering the unique revenue streams and payment cycles in the healthcare industry.
Our team assists in creating budgets and financial forecasts, allowing you to plan and allocate resources effectively.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your healthcare practice’s financial performance and identify areas for improvement.
Our expertise allows us to offer recommendations and insights to optimize your operational and financial efficiency.
By leveraging our specialized knowledge and experience in accounting for healthcare practices, you can focus on providing excellent patient care while having confidence in the financial management of your practice. Contact us today to discuss how our tailored accounting services can benefit your healthcare practice.
We understand the unique financial considerations and challenges faced by professional service providers. Whether you’re a consultant, lawyer, marketing agency, or any other professional service business, our specialized accounting services are designed to address your specific needs and help your firm thrive. Here’s how our tailored services can benefit your professional services business:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your professional services business.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with industry-specific tax regulations.
We take care of your payroll processing, including managing employee compensation, benefits, and tax obligations.
Our financial reporting provides you with clear insights into your firm’s financial performance, including revenue, expenses, and profitability.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to professional services businesses.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and enhance productivity.
Invoicing, Payment Processing, and Accounts Receivable:
We help you optimize your invoicing and payment processes, ensuring timely and accurate billing to clients.
Time Tracking, Expense Tracking, and Mileage Tracking:
We provide guidance on time tracking, expense recording, and mileage tracking systems to help you accurately capture billable hours and expenses.
Our team ensures that you can maximize your revenue by capturing all billable activities and properly accounting for business-related expenses.
Sales Tax, Income Tax, and Other Industry-Specific Taxes:
We handle the complexities of sales tax, income tax, and other industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively, considering the unique revenue cycles and project-based nature of professional services.
Our team assists in creating budgets and financial forecasts, enabling you to plan and allocate resources efficiently.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your professional services business’s financial performance.
Our expertise allows us to offer recommendations and insights to improve operational and financial efficiency, enhancing your profitability.
By leveraging our specialized knowledge and experience in accounting for professional services businesses, you can focus on delivering high-quality services to your clients while having confidence in the financial management of your firm. Contact us today to discuss how our tailored accounting services can benefit your professional services business.
We understand the unique financial dynamics and challenges faced by restaurant owners and operators. Our specialized accounting services are designed to address these specific needs and help your restaurant business thrive. Here’s how our tailored services can benefit your establishment:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your restaurant.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with restaurant industry-specific tax regulations.
We take care of your payroll processing, including managing wages, tips, and tax obligations for your restaurant staff.
Our financial reporting provides you with clear insights into your restaurant’s financial performance, including revenue, expenses, and profitability.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to the restaurant industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and enhance cost control.
Food Cost Analysis, Menu Pricing, and Profit Margin Optimization:
We help you analyze food costs, identify cost-saving opportunities, and optimize your menu pricing for maximum profitability.
Our team provides insights into ingredient costs, portion control, and menu engineering to enhance your bottom line.
Inventory Management, Waste Reduction, and Theft Prevention:
We assist you in implementing effective inventory management systems to control costs, minimize waste, and prevent theft.
Our team helps you optimize stock levels, track ingredient usage, and implement safeguards to protect your restaurant’s assets.
Sales Tax, Tip Reporting, and Other Industry-Specific Taxes:
We navigate the complexities of sales tax, tip reporting, and other restaurant industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively, considering the unique revenue and expense cycles in the restaurant industry.
Our team assists in creating budgets and financial forecasts, enabling you to plan and allocate resources efficiently.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your restaurant’s financial performance and identify areas for improvement.
Our expertise allows us to offer recommendations and insights to enhance operational and financial efficiency.
By leveraging our specialized knowledge and experience in accounting for restaurants, you can focus on delivering exceptional dining experiences while having confidence in the financial management of your establishment. Contact us today to discuss how our tailored accounting services can benefit your restaurant business.
How to Get Started With Us Today
If you’re looking for the best small business accountant in NJ for your industry, look no further than TMD Accounting. We are ready to help you take your business to the next level.
To get started with us today, simply contact us for a free consultation. We’ll discuss your business goals and challenges and how we can help you achieve them. We’ll also provide you with a customized quote for our services.
Don’t wait any longer. Contact us today and let us show you why we are the best small business accountant in NJ for your industry. You’ll be glad you did.
The construction industry is no stranger to financial challenges. Long project timelines, significant material orders, and upfront labor expenses often characterize this type of work. Construction contractors need careful management of their finances to ensure financial stability and profitability. With help from a South Jersey accountant, you can avoid these issues that lead to reduced profitability, missed deadlines, and even bankruptcy. Here are the top financial mistakes construction contractors make and how to avoid them in your company.
Not Documenting All Work
In the construction industry, project managers can make changes on the fly without proper documentation. However, this can lead to a wide range of financial challenges for contractors, including reduced profit margins and even losses on a project. Unfortunately, these problems stem from the industry’s split-second nature, where decisions and changes are based on a brief conversation and a handshake. Without proper documentation, these changes may go unnoticed and unrecorded, leading to additional costs that may not be billed.
If you want to address this challenge, you need to implement better processes to facilitate mid-project changes. You will need a detailed scope of work, which outlines all project requirements and specifications from the start of the project. The scope should be supported by a detailed change order process that allows contractors to put together pricing and document project changes before sending them to the finance team for invoicing. By implementing these processes, contractors can avoid undocumented changes and ensure all work is invoiced. With that, you can reduce the risk of financial losses and improve your company’s overall profitability.
Late Invoices and Missing Bank Draws
Projects often have invoice submission deadlines for monthly draws from the bank. Missing these deadlines can result in delayed payments and cash flow issues. Late invoicing can significantly impact a construction company’s financial health. If workers and vendors are not paid on time, the company’s financial risk increases, leaving a lack of available cash to put back into the business. The causes of late invoicing can vary, but common issues include lax reporting systems, poor communication between the field and finance departments, or an overworked financial team.
Consider hiring contractor accounting services to address these challenges to ensure all invoices are submitted on time. By addressing these issues proactively, you can ensure workers and vendors are paid on time.
Insufficient Cash Reserves
Sometimes, the construction company will have to cover the labor and material expenses before receiving a full payment from the client. As a result, construction companies may need help to cover costs and make essential payments, such as payroll. This can lead to unnecessary loans or payment delays, which can accrue interest costs or cause distrust among vendors and employees. Insufficient cash reserves can be a significant issue for construction companies since it limits their ability to grow their business.
If you want to avoid these issues, consider requiring a 25-50% deposit on projects, which can help reduce the labor and material costs being fronted by your company. You can also renegotiate vendor contracts to extend billing cycles or pay some or all expenses after completing the project. However, this approach works best when a good, trusting relationship with vendors exists. By implementing these strategies, you can reduce your financial risk, keep more cash on hand, and preserve working capital to grow the business more strategically. Additionally, having sufficient cash reserves can help you weather seasonal fluctuations and unforeseen circumstances, providing a foundation for long-term success in the industry.
Misunderstanding and Misallocating Costs
When it comes to understanding costs in the construction industry, you need to have a clear and comprehensive understanding of all the expenses associated with a project, including materials, labor, equipment, and administrative costs. Without an understanding of expenses, construction companies may be pricing jobs incorrectly, resulting in projects that are destined to be unprofitable. By properly allocating and tracking costs for each project, companies can gain a more accurate view of their profitability and make more informed business decisions.
You will want to analyze your income statements and identify costs that need to be properly allocated. When you take a more strategic approach to cost allocation and tracking, you can maximize profits on all projects and achieve greater overall profitability.
Front-Loading Costs
Front-loading costs refer to spending a large amount of money upfront in a project’s early stages. Permits and site preparation expenses are all included in this practice. While it may seem necessary to get a project off the ground, front-loading costs can lead to cash flow problems later on in the project when the money runs out before completion. Front-loading costs can strain a construction company’s cash flow. In turn, the company may need to take out loans or delay vendor payments, which can negatively impact business relationships. Additionally, it may result in a project’s completion taking longer than anticipated, leading to potential penalties and damages.
You should develop a comprehensive project plan outlining expenses and expected timelines to prevent front-loading costs. With that, you can allocate resources and manage cash flow more effectively. Additionally, consider spreading costs throughout a project, negotiating with vendors for payment terms, and setting aside contingency funds to cover unexpected expenses.
Consider TMD Accounting for Your Construction Company Financial Needs
As a family-owned and- operated accounting firm, we have extensive experience assisting with accounting for construction business clients. Our team provides personalized, high-quality service to meet your financial situation. See how we can help your construction company succeed. Call us at 856-228-2205 to schedule a consultation.
When you own a small business, you wear many hats. Not only are you responsible for the day-to-day operations of your company, but you are also responsible for making sure your employees are paid in a timely fashion, that taxes are paid properly and that your financial records are complete. This includes accounts payable, accounts receivable, balance sheets and more.
For the average business owner, dealing with financial matters can be stressful and you may begin to resent the time you spend on them, especially when you would rather be interacting with customers or developing new products. That is where TMD Accounting, your small business accountant in NJ, can help.
Bookkeeping Assistance
One of the ways a small Jersey accountant can help your company is by handling the bookkeeping services necessary to organize your finances. There are many options today for bookkeeping software and a small business accountant in NJ can help you choose one that fits your business needs. They will also be sure to choose options that will grow with your company. Of course, the answer to “why should I use an accountant for my small business when I have staff who does my bookkeeping” is simple. Your accounting staff needs guidance and may need training on the software that is chosen, something a small Jersey accountant can assist with.
Monitor Your Company’s Financial Health
Another important reason to work with TMD Accounting is to monitor the financial health of your business. A critical part of any company’s financial health is cash flow, and most business owners are unaware of the various formulas necessary to improve it or address any issues with it. Working with a small business accountant in NJ will provide you with a monitoring system to watch all transactions in your company and make sure that money is moving in and out of the business properly.
Tax Code Changes
The United States has a complicated tax code that changes quite frequently. It is almost impossible for a business owner who is not familiar with the tax code to handle that aspect of their company properly. Forms submitted to federal, state and local governments must be accurate or you could face penalties that may be extensive. If you are asking, why you should use an “accountant for my small business,” tax regulations should be at the top of the list.
Forensic Accounting
Although you may trust your accounting staff implicitly, the news is filled with stories of people who were trusted and took advantage of that trust. Using a small business accountant in NJ will provide you with a level of forensic accounting that could discover problems in your financial system. Although the problems may not be signs of fraud, they may simply be incorrect data in your financial software, funds not placed in the proper account or simply a misunderstanding about how a financial matter should be handled.
Business Transitions
Businesses undergo transitions over time, whether it is a shift in ownership, merges or a change in products or services. When your company is undergoing any type of transition, using a south Jersey accountant is critical to be sure the transition goes smoothly. They can identify any possible risks that may occur during the transition or threats to the business that could result in devastating consequences if not addressed. As the transition progresses, a small business accountant in NJ can put financial processes in place to protect your interests and the interests of your stakeholders.
Focus on Other Aspects of Business
One of the most important answers to “why should I hire an accountant for my small business” is that it allows you to focus on other aspects of your business. As a business owner, you may find yourself taking on too many responsibilities in an effort to reduce costs. In the financial aspect of your company, however, this can lead to errors that could be very costly.
In addition, when you are focusing on day-to-day finances, you are not focusing on other matters related to running a business. When you started your business, you had a vision of how it would operate and without financial guidance, that vision may become blurred. In order to pay more attention to the things that made you start your company in the first place, your products or services, allow a south Jersey accountant to focus on your financial health.
Cost Savings
It may seem counter-intuitive that hiring a small business accountant in NJ will save money, but the fact is that their expertise can do just that. A south Jersey accountant will look over your finances and pinpoint where the money is going, providing you on areas where you can save while also identifying tax breaks that can reduce how much you will owe each quarter. They can help you avoid penalties and fines by filing your tax forms regularly as well. One of the best ways to view the hiring of a south Jersey accountant is as an investment, not an expense.
Looking For a South Jersey Accountant?
If you are considering an accounting service for your business, contact TMD Accounting today to learn more about our small business and personal accounting services. Our motto is “where numbers matter and people count,” something our team lives by each day. With over 40 years’ experience as a south Jersey accountant, TMD Accounting can help your business grow while protecting your financial interests. Family-owned and operated, our staff is flexible and reliable, and we always keep our services affordable. Contact TMD Accounting today by filling out the easy online form or call 1-856-228-2205.
There is no question that one of the hardest industries for managing cash flow is the contracting business. Whether you are a construction business or an independent contractor of another kind, there are common mistakes that you may be making that hamper your cash flow. Check out these tips and tricks if you are a contractor who wants to maximize your cash flow and keep your business running smoothly.
Importance of Budgeting
One of the first tips provided by a South Jersey accountant is to create a workable, manageable budget and stick to it in order to protect cash flow. With the right budget, you can see where your money is going, identify areas where you can reduce spending as well as areas where income may be increased. Independent contractor accounting services recommend that contractors create a budget for the next 18 to 24 months with a fluid cash flow model for the next six to a year.
By monitoring cash flow for those months, you will be able to identify periods when cash is limited, whether it is because business is slower due to inclement weather or there is a lull between projects. Not only will you be able to identify slower months, it will also allow you to identify months when cash is flowing more freely and allow you to adjust spending so you are able to hold onto some of that cash for the leaner months.
Build Savings
Contracting is often described as “feast or famine” where you have periods of the year when business is booming and others when there is little work coming in. For example, if you are a roofing contractor, you may have several months in the winter when there is little to no work. During the spring and summer, there may be days of zero rest. When you create your budget, you want to look at about six months of expenses and income. Total the amounts and divide by six to get a monthly average. Whenever your income exceeds what you budgeted, put the difference into savings. When you hit those lean times, you can use savings to carry you through if necessary.
Cash Flow by Project
Another tip offered by small business accounting services is to monitor cash flow by project. To do this, you will need to determine the time frame for the project that includes when each aspect of it will be completed, when you must disburse payments and when you have to bill the owner. This will help you accelerate receipts and realize a better cash flow from each project. Keep in mind for this method to work, you will need timely collection and billing processes, methods for disbursing payments and accurate scheduling. You can also ask for upfront deposits for long-term projects in order to keep your cash flow stable, small business accounting services recommend.
Avoid Low Revenue Projects and Underbidding
Too often, contractors are guilty of taking projects that will yield low revenue, especially when business is slow. In competitive markets, it is also tempting to underbid just to get the job. A South Jersey accountant advises against those options as they can include a significant amount of risk. Every bid issued should reflect your expertise, past performance and safety record as well as the technology you have invested in, your ability to meet deadlines and other qualifications that will encourage customers to choose you over another company.
Tax Savings
When it comes to taxes, you want to pay what you owe, but there is no reason to pay more than what you must pay. Tax codes have many deductions and some are designed specifically with contractors in mind. This is where independent contractor accounting services can be very beneficial as they can identify many tax savings that the average person is unaware exist. Look at any fixed assets you plan to purchase in the future to see if it might be more beneficial to purchase in this tax year to recover some of the costs in tax deductions. In this industry, many owners overlook fuel credit for use off-highway, research and development for improving a process or the deduction for creating energy-efficient buildings by installing upgraded HVAC, lighting and other features, according to a South Jersey accountant.
Living Better with Technology
Have you been putting off technological advancements because your cash flow is tight? You may think this is helping, but it could actually be having a negative impact on your budget. There are many types of software today that can actually save you time which, in turn, saves you money. This means that outlaying funds for updated technology can actually improve your cash flow rather than reduce it. Independent contractor accounting service experts also say that technology can reduce human error and help your company run more efficiently.
Succession Planning
Although it may not seem to have an impact on cash flow, TMD Accounting, a South Jersey accountant explains that putting a plan in place for when you are no longer the owner is critical to the success of your business. It is one of the most important steps to creating a financially sound company. Not only will it make you rest easy that your company will continue after you have retired or passed on, it will indicate to employees that you intend to stay in business. This can help with employee retention while also helping promote investment in the future of your business.
Need Help Managing Your Cash Flow?
If you are struggling to manage the cash flow in your contracting business, contact TMD Accounting today to see how our friendly team can help. You can reach us by calling 1-856-228-2205 or filling out the easy online form. With 40 years’ experience, we live by our motto: “where numbers matter and people count.”
Navigating the intricacies of tax season can be daunting, especially for business owners. Fortunately, there are a few things you can do to streamline the process and make tax time more manageable. Here are a few expert tax tips from a South Jersey accountant.
Start the Recordkeeping Process Early
One of the most important steps in managing taxes for a small business is to set up a recordkeeping system right from the start. It can be easy to put that accounting work on hold when you’re focused on running your business. However, this can lead to chaos when tax season rolls around.
To avoid the last-minute scramble, track income and expenses year-round with help from a company specializing in small business accounting services. They can keep all the information in one place for you, making it easier when it comes to taxes. Outsourcing this work can save time and money in the long run. Plus, you will not miss out on deductions when you cannot find a receipt or invoice. Proper bookkeeping will keep all that information at your fingertips.
Claim All Reported Income
When managing your taxes as a small business owner, you want to ensure that you accurately report all of your income to the IRS. Remember that the IRS receives copies of the 1099-MISC forms, meaning they can cross-reference the income you report against what they know you’ve received. For that reason, you want to ensure that the amount of income you report to the IRS matches the amount reported in your 1099 forms.
Failing to report all of your income is a red flag for the IRS, and it could result in penalties, interest, and even an audit. Even if a client or customer doesn’t send you a 1099 form, you must still report any income you have received.
Along with federal taxes, you need to comply with state tax regulations. The rules regarding reporting and paying state taxes can vary. Make sure to check with your accountant or tax advisor to ensure that you are fulfilling all obligations. By accurately reporting your income and complying with tax regulations, you can avoid the stress and expense of dealing with IRS issues down the line.
Open a Business Checking Account
The importance of separating personal and business finances cannot be overstated. You need to open separate bank accounts for your business use. Separating business and personal accounts can simplify the recordkeeping process. During tax time, these separate accounts are very important. Accurate recordkeeping ensures you deduct the correct expenses and report your income properly. When you mix your finances, it can be challenging to determine which expenses are business-related or personal.
Remember that separate business accounts are not just a matter of convenience. The IRS often needs to determine whether a business is operated for profit or as a hobby. Having a separate account demonstrates that you are serious about your business and not just using it as a hobby.
Learn About All Your Deductions
Staying informed about qualified tax deductions can help you save money on your business taxes. While some deductions may seem obvious, others may surprise you. With tax laws changing frequently, you need to keep updated with laws to know what deductions are available to you.
For example, if you use part of your home to conduct business, you may be eligible for the home office deduction. By itemizing your home office expenses, you can generally receive a higher deduction than taking the simplified deduction. Additionally, you may be eligible for tax perks if you make energy-saving improvements to your business.
With that in mind, you will want to consult with your tax professional or use tax software to help identify potential deductions. You must stay informed and track the tax laws that affect your business. Otherwise, you may miss out on possible deductions that could save you money on your taxes.
Work With a Professional Accountant
If you want to ensure the financial success of your small business, find the right South Jersey accountant who can offer more than just tax preparation services. Your accountant should provide year-round support to help track your income and spending, monitor your profits, and ensure you avoid cash flow problems.
When searching for an accountant, you want to find someone knowledgeable about the specific needs of small businesses. They should be able to offer valuable advice on financial planning, budgeting, and investment opportunities. Your accountant should be your trusted business adviser.
Starting to work with an accountant from the beginning of your business venture can help you avoid costly financial mistakes and ensure the long-term financial health of your business. They can also help you stay on top of new tax laws and regulations and provide strategic financial advice. Hiring the right accountant can provide your business with year-round financial guidance. Along with that, they can help you make informed financial decisions for long-term success.
Do You Need an Accountant for My Small Business?
At TMD Accounting, we are a trusted family-owned and -operated accounting firm that has assisted numerous clients over the years. Our knowledgeable team is well-equipped to help with a range of services, from payroll to taxes. We specialize in helping automotive/body shops, healthcare, construction, hospitality, restaurants, and professional services businesses with their accounting and bookkeeping needs. Our team of professionals is ready to assist your business. Give us a call at 856-228-2205 to schedule a consultation.
When you operate a small business, you sometimes feel like there are not enough hours in the day to keep your business running smoothly. For many small business owners, it goes beyond the products and services they offer or interacting with customers. There are also those not-so-fun requirements, like balancing checkbooks, doing payroll and organizing finances. Although you may be an expert in your field, very few business owners can manage the strict financial requirements necessary to keep a business running. That’s where small business accounting services can help. However, when you decide it is time to bring in an expert to handle your company finances, you want to be sure you bring them in at the right time for both you and the accountant.
Don’t Wait for a Crisis
The first thing to consider when deciding to hire a South Jersey accountant is to do so when things are running smoothly. You don’t want to bring in an accountant after there is already a crisis. This may include falling behind in filing your taxes, a need to file an extension on your tax filing or failure to make timely payroll tax payments. If you are already buried under in receipts and other bookkeeping tasks, hiring an accountant is a good idea, but you may pay more for them to get you organized.
How Do I Know if I need an Accountant?
There are signs that you may need to bring on an accountant like TMD Accounting. If you are finding yourself spending most of your time working on financial matters than you do in the day-to-day operations of your company, you may need expert assistance. Business owners who find themselves staying late to complete accounting tasks or taking the work home with you to do when you could be spending time with family. If you are asking friends or family members to assist you with complex financial matters or if your company is growing rapidly, small business accounting services may be the answer.
Tax Repercussions
One of the main reasons to hire a South Jersey accountant is to avoid any tax repercussions that may occur due to errors. The United States tax code is very complicated, and it is unlikely you are familiar with some of the rules and regulations required of a small business. It is very easy to miss a filing deadline or to misunderstand questions asked during tax filing season, but an accountant is trained to understand the codes, even those that may have changed since filing last year. If you are facing an audit, you definitely want an accountant to be on your side, guiding you through any dealings with the IRS and helping minimize any penalties.
Starting a New Business
If you are just starting a new business, an accountant can help create financial projections and reports while also helping your plans look more professional. They can help you choose the right legal structure for your company and provide you with advice on how to best set up your accounting systems so that they run smoothly and more efficiently. As your new business grows, the accountant will continue to guide you so that your growth is optimized. Because they were with you from the beginning, they will have a better understanding of your vision.
Seeking Financing
Many businesses neglect to hire an accountant before seeking additional financing. Banks don’t simply hand out money, especially to small businesses who may not have the track record a large company may have. When you have an accountant working with you, banks are more likely to offer funding as they will see that you are serious about the success of your company. A small business accounting service can also help you choose the best funding for your business in order to save you higher costs in the long run.
Time Savings
Probably the best reason to hire a South Jersey accountant is to save time. Part of operating a business means creating reports, reconciling accounts, entering data, scanning receipts and reviewing expense reports. Shareholders want to see accurate profit and loss statements as well as professional balance sheets. The average business owner does not have the expertise necessary to excel at all these tasks. This is where an accountant can help. Accountants offer a range of packages. You may only need them to compile monthly or annual reports, or it may be time to turn over all your financial tasks to a professional, including payroll, accounts payable, accounts receivable and more.
Business Expansion
When it comes time to expand your business, an accountant will be an invaluable asset. An accountant can help improve your returns on investment by advising you the best way to allocate resources properly. They can also help you identify consumer behavior so that products or services are tailored to specific needs. An accountant can also monitor your operations and make recommendations on areas where you can improve your company’s financial health.
If you are considering hiring an accountant for your business, contact TMD Accounting today to see what options are available. Our motto is “where numbers matter and people count,” a statement we live by every day. With more than 40 years of accounting experience, you can be sure that our accountants will handle your every need. Contact TMD Accounting today by calling 1-856-228-2205 or by visiting our website to learn more.
As your business expands, self-managing your finances can quickly become daunting. Many companies, which initially handle their accounting in-house, often realize that outsourcing is a more efficient option. While outsourcing your accounting may seem like a relief, transitioning from in-house to outsourced accounting can be challenging. Here are a few tips to help you make the transition as seamless as possible.
Pros and Cons of Using an Outsourced Accountant
Outsourcing eliminates the time and costs of the hiring process. Along with that, it provides access to expert accountants and bookkeepers. Additionally, outsourcing makes it easier to scale accounting services, leverages automation technologies, and provides a valuable advisor to help make the process more efficient. By choosing the right outsourcing company, you can ensure that your accounting is in the hands of a reliable and knowledgeable firm.
One of the main disadvantages of using an outsourced accountant is a need for more control over the quality of the work. When you outsource small business accounting services, you rely on a third party to manage crucial financial information. It can be challenging to monitor their performance and ensure that the work is being done accurately and efficiently.
Another potential issue is a need for more direct collaboration with your accountant. When working with an outsourced accountant, communication may be limited to email or phone calls, making it more difficult to establish a close working relationship and receive timely and personalized support.
Make the Switch by Choosing the Right Partner
Choosing the right financial partner is vital to a successful accounting transition. With the right support, the process can be smooth and effective. If you want to ensure that you choose the best fit for your business, consider the following qualities when selecting an accounting firm.
Proactivity
A good accounting firm should be proactive in helping you transition from in-house accounting to outsourcing as seamlessly and stress-free as possible. If they aren’t offering support during this stage, it may be a sign that they are not the right fit for your business.
Communication
A strong communication style is crucial in any business relationship. Look for responsive, clear, and proactive communication from the accounting firm.
Expertise
Make sure the accounting firm you choose has the experience, knowledge, and technology to meet your needs. You will want to consider their track record and reputation in the industry.
Customer Focus
A quality accounting firm should be in tune with your needs from the start. You want them to be committed to making your life easier. Your prospective accounting firm should be customer-focused and dedicated to your success.
Get an Early Start With the Right Plan
When transitioning from in-house accounting to outsourcing, you need to plan and budget enough time for the process. You want to ensure that your financial statements and reports are received promptly. Keep in mind that the switch may take several weeks to complete. To make the transition as smooth as possible, plan to spend two to four weeks gathering your financial records and documents for your new accounting firm.
Once you’ve handed over your financial records to your new accountant, they should be able to provide you with an estimate of how long it will take to start monthly accounting services. Remember that if you need to catch up on bookkeeping or taxes, your accountant will need to complete them before moving forward with future financial statements. On average, it takes 60-90 days to complete one year’s worth of back taxes.
You should be cautious of accountants who make unrealistic promises, such as claiming the transition will be “a breeze” or take “no time.” These promises may be a sign that the accountant needs to be more serious about the financial health of your business. On the other hand, if they finish the work too quickly, you might want to be skeptical of the quality of their work.
Set Achievable Goals
Before transitioning to outsourced accounting, you will want to understand and communicate your specific pain points and goals. Knowing why you want to outsource and what you’re nervous about can help establish clear expectations and ensure a successful partnership with your new accountant.
To get the most out of your accounting relationship, take the time to list everything that frustrates you about your current accounting process and your future financial goals. By providing this information to your accountant, they will better understand your needs and tailor their services to meet those concerns.
A quality accounting firm will have established processes to ensure your success, including meetings designed to help you establish best practices and a plan for working toward your financial goals. Your accountant should thoroughly understand your business and be equipped to provide the guidance and support you need to succeed.
Find an Accountant
Transitioning from in-house to outsourced accounting can be a significant step for your business. Whether you have an in-house accountant or use a combination of an in-house bookkeeper and an external accounting professional, there are certain advantages to working with an outsourced accounting service.
By following these tips, you can be better equipped to smoothly transition to outsourced accounting and enjoy the benefits of working with a professional and experienced South Jersey accountant.
Choose TMD Accounting for Your Small Business
We are a family-owned and -operated accounting firm. We have helped numerous clients over the years. Whether you need help with payroll or taxes, we are here to assist you. Schedule a consultation by calling 856-228-2205.
