Contractors in Gloucester County: Achieve Financial Stability with Professional Accounting

Accounting

Running a small business comes with numerous challenges, and one area that often proves to be a hurdle for entrepreneurs is bookkeeping. Small business owners often lack the necessary experience and knowledge to manage their financial records effectively, leading to inaccuracies and potential compliance issues. However, there is a solution to this problem. You need to hire a local bookkeeping service. Learn more about the importance of bookkeeping services and discover how they can help with these essential tasks.

 

What Are Bookkeeping Services?

Businesses can rely on bookkeeping services to maintain accurate and organized financial records. These services handle everything from:

 

  • Recording and categorizing financial transactions
  • Managing accounts receivable and payable
  • Reconciling bank statements
  • Generating financial reports

 

Outsourcing these tasks to a professional bookkeeping service allows owners to focus on other aspects of the business while ensuring their financial records are in good hands.

What Are Key Bookkeeping Tasks?

Bookkeeping involves several key tasks that contribute to the overall financial health of a business. Several crucial bookkeeping tasks must be carried out to achieve effective record-keeping and financial management. These essential tasks include:

 

Recording Financial Transactions

Bookkeeping is founded on the accurate recording of financial transactions. This practice involves capturing information about sales, purchases, expenses, and payments, which bookkeepers ensure are properly documented, categorized, and entered into the accounting system. By maintaining a comprehensive record of transactions, businesses can easily track their financial activities and have a clear audit trail for reference.

Accurately recording financial transactions is crucial for numerous reasons. It enables businesses to monitor their revenue and expenses, assess profitability, and make informed decisions about resource allocation. Additionally, companies with a detailed transaction history can analyze trends, identify patterns, and evaluate the financial impact of specific activities or initiatives.

 

Categorizing Transactions

Bookkeepers categorize financial transactions into appropriate accounts, such as revenue, cost of goods sold, expenses, assets, liabilities, and equity. This categorization ensures that financial information is well-organized and easily accessible for analysis.

By categorizing transactions, businesses can generate accurate financial statements and calculate gross profit, net profit, and various financial ratios. This information is essential for assessing a business’s financial health, identifying improvement areas, and making strategic decisions based on informed data.

 

Managing Accounts Receivable and Accounts Payable

Bookkeepers play a role in managing a company’s financial records. They oversee accounts receivable and accounts payable, which are vital for maintaining a healthy cash flow. Bookkeepers ensure customer invoices are issued promptly, accurately recorded, and paid on time. They also manage vendor bills by verifying their accuracy and scheduling timely payments.

By maintaining organized and up-to-date financial records, bookkeepers help businesses manage their cash flow effectively and minimize the risk of unpaid invoices and late payment penalties. Effective accounts receivable and accounts payable management is key to maintaining positive relationships with customers and suppliers and ensuring the financial stability of a company.

 

Bank Reconciliation

Bank reconciliation is a vital aspect of bookkeeping that involves carefully comparing and reconciling a company’s financial records with the bank statements. Professional South Jersey bookkeepers will scrutinize bank transactions, match them with corresponding entries in the accounting system, and promptly identify any discrepancies.

In addition to detecting errors or omissions in financial records, bank reconciliation is vital in uncovering unauthorized transactions, potential fraud, or banking errors. By ensuring that the company’s financial records align with the bank statements, bookkeepers provide businesses with accurate and reliable financial information, enhancing transparency and accountability. Bank reconciliation is a necessary process that every business should prioritize.

 

Financial Reporting

Generating financial reports is a crucial aspect of bookkeeping that cannot be overlooked. Bookkeepers are essential in compiling and analyzing financial data to prepare various reports, including balance sheets, income statements, cash flow statements, and customized reports tailored to the business’s specific needs.

Financial reports provide a comprehensive overview of a company’s financial position, performance, and cash flow, making them an invaluable tool for decision-making. They offer valuable insights into revenue generation, cost management, profitability, and liquidity. All those aspects are vital for internal decision-making by external stakeholders, such as investors, lenders, and regulatory authorities.

Accurate financial reporting is essential for tax compliance since businesses must report their financial information to tax authorities. By ensuring that financial reports comply with relevant accounting standards and tax regulations, bookkeepers help companies to meet their legal obligations and avoid penalties. For that reason, it is important to have a competent bookkeeper to guarantee that financial reports are always accurate and reliable.

 

Are Bookkeeping and Accounting the Same Thing?

Bookkeeping and accounting are two distinct functions in financial management. While bookkeeping involves recording and organizing financial transactions, accounting focuses on interpreting, analyzing, and reporting financial information. Bookkeeping is the foundation of accounting since it provides accurate and reliable financial data that accountants use to provide strategic financial advice and ensure regulatory compliance. Professional bookkeeping services are vital to the success of any financial management process.

 

The Benefits of Professional Bookkeeping Services in South Jersey

The Benefits of Professional Bookkeeping Services in South Jersey

Outsourcing your bookkeeping needs to professional services in South Jersey is the best way to manage your small business’s financial aspects. Hiring someone to handle your bookkeeping will provide numerous benefits, such as:

 

Boosting Efficiency

Expert bookkeeping services in South Jersey provide an unmatched level of efficiency when handling your financial tasks. These specialists possess the necessary knowledge, skills, and resources to seamlessly manage your bookkeeping needs, saving you valuable time and effort. With their expertise and specialized software, they can streamline processes, automate repetitive tasks, and ensure that your financial records are always up to date.

 

Maintaining Accuracy

Bookkeeping professionals in South Jersey are highly skilled in maintaining accurate and error-free financial records. With their expertise in accounting principles and best practices, they can meticulously review and reconcile your financial transactions, leaving no room for potential errors or discrepancies. This level of accuracy is essential for making informed decisions and ensuring the financial stability of your business.

 

Staying Compliant

When it comes to compliance with tax regulations and financial reporting requirements, professional bookkeepers in South Jersey are the go-to experts. They stay current with the latest rules and regulations imposed by local, state, and federal authorities, ensuring that your financial records are always accurate, complete, and compliant with the applicable standards. By entrusting your bookkeeping tasks to these professionals, you can rest assured that your business remains compliant and avoids any costly penalties or legal issues.

 

Providing Convenience

With the help of professionals, you can confidently entrust your financial tasks and free up valuable time and resources for other business aspects. You’ll no longer need to worry about navigating complex financial tasks or keeping up with accounting regulations. This gives you the freedom to focus on growing your business, building strong customer relationships, and implementing strategic initiatives that drive success.

 

Building Your Financial Strategy

In South Jersey, professional bookkeepers are a valuable resource for gaining insights into your company’s financial performance. They analyze your financial data and generate comprehensive reports that equip you to make informed decisions and develop effective financial strategies. These experts identify trends, pinpoint areas for improvement, and offer recommendations on cost-saving measures, cash flow management, and budget allocation. By leveraging their expertise, you can optimize your financial position and drive the long-term growth of your business with confidence.

 

How to Choose the Right Bookkeeping Service for Your South Jersey Business?

How to Choose the Right Bookkeeping Service for Your South Jersey Business?

When searching for a bookkeeping service for your South Jersey business, it is important to be aware of the following factors:

 

Experience and Expertise

You will want to opt for a bookkeeping service with a proven track record and extensive experience in your industry. Their expertise will guarantee accurate financial management and compliance with industry-specific regulations.

 

Technology and Software

You will also want to inquire about the bookkeeping service’s technology infrastructure and software capabilities. Ensure that they utilize modern tools that can streamline processes and enhance efficiency.

 

Communication and Accessibility

Make sure to select a bookkeeping service that maintains open and transparent communication. They should be readily available when you have questions or require assistance, providing prompt responses and guidance.

 

Scalability

Finally, always consider your future growth plans and ensure the bookkeeping service can adapt to your evolving needs. Scalability is vital to establish a long-term partnership.

 

Find Out How Our South Jersey Bookkeeping Services Can Help Your Business

Maintaining accurate and up-to-date financial records is a daunting task for small businesses. Mistakes are easy to make, and important transactions can be easily overlooked. That can all lead to financial mismanagement and serious legal issues.

However, with TMD Accounting, you can outsource your bookkeeping and trust our experienced professionals to handle your financial tasks. We have the expertise to ensure accuracy and maintain comprehensive records, giving you peace of mind.

Outsourcing your bookkeeping needs to TMD Accounting is the smart choice for your small business. We are confident in our expertise, commitment to accuracy, and dedication to customer satisfaction. Our team knows we can effectively meet your bookkeeping requirements. Let us help your South Jersey business thrive by giving us a call today at 1-856-228-2205.

Drive Profitability: The Role of Expert Accounting in Growing Auto Body Shops in Gloucester County, NJ

Accounting

Auto body shops need more than just exceptional repair services to drive profits. Skilled accountants can provide guidance and support for financial management and accounting, from cost control to strategic analysis. With sound financial practices and the insights of an accountant, auto body shops can maximize revenue and minimize expenses for long-term success in a competitive market.

How to Improve Your Profitability

There are multiple ways that an auto body repair shop accountant can assist in achieving financial success for your businesses, including:

Cost Control and Expense Management

When an experienced accountant analyzes your shop’s financial data, they can identify areas where you might be overspending, wasting money unnecessarily, or being inefficient. They will look at all your expenses, including supplies, equipment, utilities, rent, and insurance, and find opportunities for cost reduction.

Your accountant might suggest strategies for negotiating better prices with your suppliers, exploring alternative vendors, or implementing cost-saving measures that won’t hurt the quality of your repairs. Along with that, they can review your overhead expenses and see how efficiently you’re using your resources.

Accurate Job Costing and Pricing

In the auto body industry, job costing plays a role in determining the profitability of those individual repair jobs. Establishing strong job costing systems requires the expertise of an accountant who can accurately capture your direct and indirect costs associated with each repair. Generally, you need to analyze the labor hours required and the cost of materials and parts to allocate appropriate overhead expenses.

The accountant ensures your pricing estimates are accurate by considering the shop’s desired profit margin and calculating costs based on these factors. Accuracy in job costing and pricing helps avoid underpricing, improves profitability, and enables the shop to make informed decisions about resource allocation.

Cash Flow Optimization

Managing cash flow is important for the success of any business, and auto body shops are no exception. An accountant monitors your cash flow patterns, analyzes historical data, and develops forecasts to accurately project future cash inflows and outflows. They work closely with you to create cash flow budgets and projections that align with the shop’s goals and growth plans. By implementing strategies to speed up receivables, negotiate favorable payment terms with suppliers, and optimize inventory levels, the accountant can help maintain a healthy cash flow position for your business.

Financial Analysis and Decision-Making

A professional accountant can conduct a thorough financial evaluation of key performance indicators, trend analysis, and comparison against industry standards. They scrutinize your auto body shop’s financial statements, profitability ratios, and other metrics to identify areas of strength and weakness. For example, they can recognize profitable services or product lines, assess the cost-effectiveness of marketing strategies, and analyze the impact of price changes on overall profitability.

Tax Planning and Compliance

Navigating tax regulations can be confusing since they are constantly evolving. You should seek the expertise of a knowledgeable accountant to ensure compliance with tax laws, maximize deductions, and minimize burdens. Accounting services for auto body shops in Gloucester County will update you with tax regulations and changes that may affect your operations.

Working closely with you, they develop effective tax planning strategies that take advantage of available tax credits, deductions, and incentives specific to the automotive industry. Accurately preparing tax returns in a timely manner reduces the risk of penalties and fines while maximizing after-tax profits for your business.

Financial Controls and Fraud Prevention

You will want to have strong internal controls in place to prevent financial fraud, protect assets, and maintain the accuracy of financial data. An accountant can create and execute internal control procedures for the auto body shop’s unique needs. These procedures include implementing checks and balances, such as separating responsibilities, regularly reconciling accounts, and reviewing financial transactions.

Financial Forecasting and Planning

An accountant is key in helping you plan for future growth and profitability. They carefully study historical data, industry trends, and market conditions to create financial projections and forecasts. This involves predicting revenue growth, estimating expenses, and identifying possible risks and opportunities. Additionally, the accountant can help you establish achievable financial goals, create budgets, and set performance targets. Constantly monitoring actual performance against forecasts enables you to make necessary adjustments and proactive decisions to increase profits.

Strategic Business Advice

In addition to handling regular accounting tasks, a proficient accountant can offer valuable business advice to you. With their extensive financial knowledge and industry expertise, they can provide valuable insights into market trends, competition, and growth prospects. They can also assess the feasibility of expansion plans, evaluate investment decisions, and recommend financing options. Since they act as a reliable advisor, the accountant supports you in making sound strategic decisions that boost profits and ensure long-term success.

A skilled accountant can do more than just bookkeeping for your auto body shop. They can help with cost control, job costing, cash flow optimization, financial analysis, and strategic planning. Their expertise can improve profitability and long-term success in a competitive industry.

Find the Right Accountant for Your Auto Body Repair Shop

When you need a professional accountant for your auto repair shop, reach out to TMD Accounting. We are a family-owned and -operated business with over 40 years of experience in Gloucester County, New Jersey. Our flexibility, reliability, and affordability are sources of pride for us. Our motto, “Where numbers matter and people count,” reflects our desire to establish strong and dependable relationships with our clients. Schedule a consultation by calling 856-228-2205.

Unlocking Financial Success: How Professional Accounting Services Benefit South Jersey Lawyers

Accounting

Both accounting and the legal profession require high levels of sophistication because of their complexity. In most cases, it is not possible to expect an attorney to understand accounting principles as well as an accountant does, and it is likewise not reasonable to expect an accountant to have the knowledge to represent people in court or explain complex laws and regulations. While these professions involve separate bodies of knowledge and distinct practices, accounting is important for law firms and attorneys. There are multiple reasons why law firms turn to certified public accountants (CPAs) and accounting firms to handle their accounting needs. Here is some information from TMD Accounting about the benefits lawyers derive from retaining accounting firms for their firm’s needs.

Maintain Regulatory and Ethical Compliance

Attorneys must pass the bar and ethics exams after graduating from law school before they can become licensed to practice law in New Jersey. Becoming licensed to practice law is the culmination of years of work. Attorneys must strive to comply with all of the regulatory requirements that govern the legal profession, including regulations about accounting standards and trust accounting. They also must comply with the rules of ethics for attorneys. Violating professional regulations and standards can lead to serious penalties and the potential loss of the attorney’s license through disbarment or suspension. Seeking South Jersey law firm accounting services from TMD Accounting can help to ensure your law firm maintains regulatory and ethical compliance and avoids the risk of potential disciplinary sanctions.

Understand the Firm’s Financial Health

South Jersey law firm accounting services allow principals to see exactly where their firms stand financially at any point. This can help them identify areas in which cuts should be made, unnecessary expenses, opportunities for growth, and other necessary changes to make. Having this type of information at your fingertips can help you adjust course at any time to keep your profit margins healthy and your expenses low. Your accountant can also make recommendations on how to grow and expand in a fiscally responsible way.

Accounting firms provide financial analysis, reports, and metrics to help you identify areas that need improvement, areas in which your firm is performing well, and overall trends your firm has been experiencing. This type of insight can help you make better financial decisions about the direction in which your firm should go.

Time Savings

Some solo practitioners and small law firms attempt to complete their books themselves and deal with their own accounting needs. However, even if you worked in accounting before you changed professions and pursued a career as a lawyer, trying to handle all of the accounting services on your own can take away time from focusing on your business. In most cases, attorneys do not have a solid grasp of generally accepted accounting practices (GAAP) and might be prone to making costly errors. Trying to manage your firm’s accounting on top of your other duties can be time-consuming and overwhelming. When you outsource your accounting to an experienced professional accountant, it will free up your time to devote to your cases, clients, and your business operations.

Tax Planning and Compliance

Staying on top of your taxes is critical for law firms. Attorneys might need help choosing the most appropriate legal entity structure for their firms that will provide them with the best tax savings while also shielding them from potential liability. Throughout the year, firms need to be cognizant of multiple types of taxes and filing requirements, including payroll taxes, quarterly tax filings, annual tax filings, partnership returns, and others. When your firm partners with a professional accounting firm, you can benefit from tax strategies that might save your firm significant sums when it’s time to file your tax returns and recommendations for deductions and credits that you might otherwise overlook. An accountant can also keep you apprised of changes in the tax laws when they occur so that your firm can make adjustments to maximize tax savings.

Prevent Financial Fraud

Attorneys want to avoid financial fraud at all costs. Whether inadvertent or intentional, actions like commingling of law firm and client funds and other similar issues can lead to serious penalties and potential criminal liability. Working with an accounting firm can help to keep your finances organized and in order and identify issues as they arise. Unfortunately, law firms are not insulated from internal theft, embezzlement, and similar crimes committed by employees. Regular audits and accounting can help to identify these types of problems before they balloon and allow firms to hold those responsible accountable for their actions. Catching internal thefts and fraud quickly can help to prevent firms from sustaining substantial losses and protect clients from thefts of client funds.

Protect the Firm’s Reputation

Law firms that have organized accounting practices, good systems for tracking trust accounting, billable hours, and client communication are much likelier to enjoy good reputations among their clients and peers within the legal community. By contrast, if your accounting practices are disorganized, they can set your firm up for client complaints and cause serious harm to your reputation.

Talk to Us About South Jersey Law Firm Accounting Services

Whether you are a solo practitioner, a small law firm, or a mid- to large-sized law practice, you should consider allowing a professional accounting firm to handle the accounting practices for your business. When you outsource your accounting needs to TMD Accounting, we can help you understand the financial picture of your business and ensure you meet tax and other regulatory compliance standards. To learn more, call us today to schedule a consultation at 1-856-228-2205.

How Construction Business Owners Can Prepare for an IRS Audit

Accounting, Small Business

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.

If your tax returns differ from those provided by clients or vendors, there may be questions or if your tax return is linked to another tax-payer account that is facing or has faced an audit. One of the biggest mistakes made in the construction industry, however, is misclassifying employees as independent contractors when they are actually employees.

Employee Misclassification

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.

Healthy Finances for Healthcare Providers: Partnering with TMD Accounting

Accounting, Tax Planning

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.

Looking For a Medical Accounting Service?

If you are a healthcare provider and need assistance with your healthcare accounting, contact TMD Accounting Services today to see how we can help. As a medical accounting service with decades of experience, we can help you reach your financial goals and help manage your accounting needs with flexibility, reliability and affordability. We live by our motto every day “where numbers matter and people count.” Learn more by calling 1-856-228-2205.

The Ultimate Guide to Finding a Small Business Accountant in NJ

Accounting, Small Business

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

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

By keeping proper bookkeeping, small business accounting services give you a clear understanding of your financial position. In addition to bookkeeping, a professional business accountant is familiar with tax laws and regulations, allowing them to assist with tax compliance and planning. They can help prepare and file tax returns to ensure your business complies with all relevant laws. Also, they can give valuable advice on tax planning to minimize tax liabilities and maximize deductions, potentially saving your business money in the long run.

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

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.

Need Help With Your Small NJ Business?

Finding the right small business accountant in New Jersey is crucial for maintaining accurate financial records, maximizing tax deductions, and receiving valuable financial advice. TMD Accounting has been a trusted family-owned and -operated business for over 40 years in Gloucester County, NJ. We serve various industries, including automotive/body shops, healthcare, construction, hospitality, restaurants, and professional services. Our flexibility, reliability, and affordability make us an excellent choice for your small business accounting needs. If you want to schedule a consultation, call us at 856-228-2205.

Best Small Business Accountant in NJ for Your Industry

Accounting, Bookkeeping, Small Business

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.

That’s why outsourcing your accounting to a professional can be a smart move. A small business accountant can take care of all the accounting functions for you, such as:

  • Preparing and filing your tax returns
  • Keeping track of your income and expenses
  • Managing your payroll and benefits
  • Creating your budget and cash flow projections
  • Providing financial reports and analysis
  • Advising you on tax deductions and credits
  • Helping you with audits and compliance issues

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:

Automotive shops

Automotive Shops Accounting Services

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.

Construction contractors

Construction Contractors Accounting Services

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.

Healthcare practices

Healthcare Practice Accounting Services

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.

Professional Services Accounting Services

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:

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.

Restaurant Accounting Services

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.

Top Financial Mistakes Construction Contractors Make and How to Avoid Them

Accounting

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.

The Benefits of Choosing TMD Accounting as Your South Jersey Small Business Accountant

Accounting, Small Business

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.

Managing Cash Flow as a Contractor: Tips and Tricks

Accounting, Small Business

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.”

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