Managing your finances effectively is crucial for the success and sustainability of your business. One essential tool in financial management is creating a cash flow projection. A cash flow projection helps you anticipate the inflow and outflow of cash in your business, allowing you to make informed decisions and ensure that you have enough liquidity to cover your expenses. In this blog, we will guide you through the process of creating a cash flow projection. Whether you’re a small business owner or a financial professional working in South Jersey, understanding this financial tool is essential. Many South Jersey accounting firms recommend cash flow projections as a fundamental component of financial planning.

What is a Cash Flow Projection?

Also know as a cash flow forecast or cash flow statement, a cash flow projection is a financial tool used by individuals and businesses to estimate future inflows and outflows of funds over a specified period, typically on a monthly or quarterly basis. The primary purpose of creating a cash flow projection is to anticipate how much money will be available at a given point. This is a crucial tool that enables you business to make informed financial decisions. 

Why Cash Flow Projection Matters

Before we dive into the steps of creating a cash flow projection, let’s understand why it’s so important for your business.

1. Liquidity Management: A cash flow projection helps you manage your liquidity effectively. It allows you to see when your business will have surplus cash and when you might face shortages. This knowledge enables you to plan for those periods of tight cash flow.
2. Budgeting and Planning: By forecasting your cash flows, you can create a realistic budget for your business. This budget can guide your spending decisions, ensuring that you allocate funds to the areas that need them the most.
3. Financial Decision-Making: When you have a clear picture of your future cash flows, you can make informed financial decisions. For example, you can decide when to invest in new equipment, hire additional staff, or expand your operations.
4. Risk Management: Cash flow projections also help you identify potential risks. If you foresee a cash flow shortfall, you can take steps to mitigate the risk, such as securing a line of credit or delaying non-essential expenses.

Steps to Create a Cash Flow Projection

Now that we understand the importance of cash flow projections, let’s explore how to create one.

1. Gather Historical Data

Start by collecting historical financial data. This includes past income statements, balance sheets, and cash flow statements. These documents provide valuable insights into your past cash flows, which can be used as a basis for your projection.

2. Identify Income Sources

List all the sources of income for your business. This may include sales revenue, investments, loans, or any other inflows of cash. Be as detailed as possible and categorize each income source.

3. Estimate Future Income

Project your future income based on historical data and your expectations. Consider factors such as seasonality, market trends, and any upcoming changes in your business strategy. Accountants in New Jersey can help you with this step, as they have expertise in financial forecasting.

4. List Expenses

Create a comprehensive list of all your business expenses. This should include fixed costs like rent, utilities, and salaries, as well as variable expenses like materials, marketing, and maintenance.

5. Estimate Future Expenses

Just like with income, project your future expenses. Be realistic and consider any potential changes in costs. For example, if you plan to hire more employees, account for their salaries and benefits.

6. Determine Cash Flow Timing

Now, it’s time to estimate when cash will be received and when it will be spent. Some income sources may have a delay, such as accounts receivable, while certain expenses may be paid in advance or on a different schedule.

7. Create a Cash Flow Statement

Use the gathered data to create a cash flow statement for each month or quarter of the projection period. This statement should show the opening cash balance, cash inflows, cash outflows, and the closing cash balance for each period.

8. Review and Adjust

Regularly review your cash flow projection and compare it to your actual cash flows. If there are discrepancies, adjust your projection accordingly. This ongoing monitoring ensures that your projection remains accurate and useful.

9. Plan for Contingencies 

Account for unexpected events and emergencies in your projection. Having a contingency plan in place will help you navigate unforeseen challenges without jeopardizing your business’s financial health.

10. Seek Professional Advice

If you’re not confident in your ability to create a cash flow projection on your own, consider consulting with South Jersey accounting firms or accountants in New Jersey. They have the expertise to assist you in developing accurate and comprehensive projections tailored to your business. 

You should consider Thomas M. DiTullio (TMD) Accounting and Financial Management to help you create your cash flow projection and keep your business financially healthy for years to come. TMD Accounting has over 40 years of experience, and many of our clients across a variety of industries have used our services for 20 years or more! 

Looking for South Jersey Accounting Services?

Creating a cash flow projection is a vital step in managing your business’s finances effectively. It provides you with valuable insights into your cash flow patterns, allowing you to make informed decisions and plan for the future. Whether you’re a small business owner in South Jersey or a financial professional in New Jersey, mastering the art of cash flow projection is essential for your financial success. Remember to regularly review and update your projection to ensure its accuracy and relevance to your business’s evolving needs, and seek (and implement) professional help from a South Jersey accounting firm like TMD Accounting to cover all your bases.

Contact a South Jersey accounting firm like TMD Accounting now by calling 856-228-2205 to learn more about our services.

Business and personal credit both play essential roles for small business owners. Every budding entrepreneur should know how to distinguish between these two credit types, how they might influence each other, and how to cultivate business credit from scratch.

In this brief guide, we’ll cover all you need to know about these two distinct credit reporting models, including a breakdown of establishing your business credit profile for the first time, a general overview of the personal and business credit reporting process, and more.

Personal and business credit scores: how do they work?

The personal and business credit scoring models share many similarities, but they’re actually two separate rating systems. Your personal credit ties to your Social Security Number and represents a standardized evaluation of your personal financial habits.

Your personal score, also known as a Fair Isaac Corporation or FICO score, gives lenders a big-picture overview of your individual creditworthiness. To establish a favorable personal credit profile, you’ll need to evidence a timely payment history, a low balance-to-limit ratio (typically less than 25%), and avoid negative reporting details such as foreclosures, judgment liens, and charge-offs.

High balances on your open credit lines, limited sources of open credit, and too many hard inquiries when applying for new credit can trigger low personal credit scores. Personal FICOs can vary substantially, ranging from 350 to 800, with scores 800 and above representing the highest score attainable.

A “perfect” rating generally requires a significant history of flawless credit performance. The different credit bureaus report personal credit scores, however, and each may have slightly different criteria for calculating your score.

The DUNS business score ratings typically correspond to the following numeric range:

• 80-100: Excellent payment history
• 70-79: Good payment history
• 60-69: Fair payment history
• 60-69: Fair payment history
• Below 50: Unavailable or seriously delinquent payment history

This scoring system is considerably different than that of your FICO. While it is based on the same principles that apply to your personal credit, your business score looks solely at payment behavior pertaining to the enterprise itself, and not individual credit scores. Like your personal FICO, a strong business credit rating shows you’ve been making timely payments and satisfying your financial commitments over the past seven to 10 years.

The same general principles apply to establishing a business credit profile with a few key distinctions, which we’ll discuss further below, and your personal score may play a factor in influencing a business loan approval in some instances. The higher your business credit score, the more favorable terms you are likely to negotiate.

While both personal and business credit scores rely on the same core rating concepts, your personal FICO ties to your individual borrower habits only. It looks at credit behaviors as they relate to your personal loans and revolving trade lines. A business credit score, in comparison, focuses solely on accounts managed by the entity itself.

A good personal credit score can open the door to better lending terms and more credit opportunities on both business and personal fronts. To ensure you maintain a good credit score, you’ll need to make timely payments on your accounts and satisfy all your financial obligations as agreed.

What is business credit, and how is it different than personal credit?

While business credit and personal credit follow many of the same principles in evaluating creditworthiness, they are, as mentioned, still fundamentally different. Your business credit profile links to your business’s name and contact information -not your Social Security Number (SSN).

If you are seeking business credit, remember to use your company name and include business contact information instead of your SSN when you apply. This approach ensures you separate the two scores and keep your business credit activities from impacting your personal credit profile.

You’ll also want to verify your assigned business credit score, if you have one, before applying for credit under your business’s name. While many companies start with personal loans and borrowing against credit cards, you’ll want to transition to building a business credit profile as quickly as possible to avoid intermingling your finances. This way, a negative credit event impacting your personal score won’t affect your business credit rating and company finances.

Be aware, as well, that obtaining business credit often requires additional information about your company that you wouldn’t normally need when applying for a personal loan. You’ll have to present detailed business financials, proof of liabilities, and other supporting documents to apply for a business loan or line of credit. Expect to supply additional information beyond just a driver’s license, social security number, and documentation of two weeks’ earnings that you’d typically provide for an auto or home loan application.

Building your business credit profile

Cultivating your business credit begins with establishing a positive payment history over the span of years. This inevitably leads to a stellar profile. A well-documented record of making timely payments on your company-specific accounts and maintaining low overall debt levels in relation to your trade limits helps lay the groundwork for building exceptional business credit.

You can start this process of building your business credit by establishing a separate Dun & Bradstreet Paydex or DUNS number to differentiate between personal and business credit. This is the key to increasing your chances of landing an approval on your next business credit application.

You can also try creating accounts with partners and suppliers that specialize in reporting business credit information to the three main bureaus. Organizations like these will relay your payment history to the agencies and help you start developing a favorable business credit history. Additionally, banks often use reports from these bureaus to gauge a business’s creditworthiness.

If you don’t have a business credit score yet, consider the following tips to start building your profile right away:

• Obtain an EIN to separate your personal and business credit
• Ask your business to report to the rating bureaus
• Make timely payments to all your business accounts
• Establish inventory credit with your suppliers
• Open a secured business line of credit
• Avoid late payments in excess of 30 days
• Need more info on building business credit?

Seeking sound professional advice from an experienced business lending consultant is a great place to start developing and protecting your credit. The seasoned consultants at TMD Accounting can supply you with invaluable guidance on optimal payment habits, debt levels, and the best loan products for enhancing your business credit score.

Our team will guide you through every step of the lending process by supplying you with a comprehensive list of the personal and financial documents required to open your next business loan account. For more on our premium credit and lending services, connect with TMD Accounting by calling us now at (856) 228-2205.

Flower shops play a vital role in the South Jersey area, providing stunning arrangements for a variety of occasions. However, there are many financial hurdles that flower shop owners face. Your business can overcome these challenges with help from a professional accounting team. Find out how a local accounting service can help boost your business.

Understanding the Flower Shop Industry in South Jersey

Your flower shop has unique needs and concerns. This industry handles delicate and perishable products, needs to meet seasonal demands, and caters to customers’ specific preferences.

South Jersey’s flower shops face various financial concerns, such as managing seasonal fluctuations in demand and inventory, tracking perishable goods, and balancing operating costs. You need proper bookkeeping practices to account for these dynamics and maintain accurate expenses, revenue, and inventory turnover records.

Financial management plays a vital role in ensuring profitability in a highly competitive market. You need to choose a financial team that can assist with managing cash flow, inventory, analyzing profitability, and developing a comprehensive financial plan.

Financial Management for Flower Shops

Financial management is an all-encompassing process that involves handling a flower shop’s financial resources to achieve its objectives and secure long-term prosperity. Here is what you need to know about the crucial elements of financial management and their impact on tax season for flower shops.

Cash Flow Management

Cash flow management is important for the success of flower shops. By maintaining a healthy cash flow, these businesses can ensure that they have enough funds to cover daily operational expenses, pay suppliers, and meet tax obligations. During peak seasons, such as Valentine’s Day or Mother’s Day, flower shops experience a surge in demand and sales.

With proper cash flow management, they can capitalize on these opportunities by ensuring they have enough inventory and resources to meet customer demands. Also, it enables them to plan for and cover additional costs during busy periods, such as hiring temporary staff or increasing marketing efforts.

During slower periods, flower shops can easily manage their cash flow to avoid cash shortages and financial strain. By carefully forecasting and monitoring cash flow, flower shop owners can make informed decisions about when to invest in inventory, implement cost-cutting measures, and set aside funds for tax payments. Flower shops can confidently thrive even in the most challenging economic conditions with effective cash flow management.

Inventory Management

Flower shops must pay close attention to inventory management, especially when dealing with perishable goods. By managing inventory effectively, flower shops can satisfy customer demand while minimizing waste and spoilage. During tax season, accurate inventory tracking becomes even more critical. Precise inventory tracking enables flower shop owners to accurately calculate the cost of goods sold (COGS), an essential factor in determining taxable income.

By monitoring inventory levels closely, flower shops can identify slow-moving items and take appropriate action, such as offering discounts or promotions to sell them before tax season.

Also, proper inventory management helps identify discrepancies or potential losses that could impact financial statements and tax liabilities. Maintaining detailed inventory purchases, sales, and spoilage records is vital for accurate tax reporting and compliance.

Profitability Analysis

Profitability analysis evaluates the financial performance of different products, services, or customer segments within a flower shop. Through this process, flower shop owners can identify the most desired offerings and understand the factors contributing to profitability.

During tax season, profitability analysis plays a vital role in tax planning. By analyzing profit margins, flower shop owners can identify areas where costs can be reduced, efficiency can be improved, or pricing strategies can be adjusted. If certain products have higher profit margins, flower shop owners can focus on promoting and selling those products to maximize profitability during tax season.

Also, profitability analysis enables flower shop owners to evaluate the effectiveness of marketing campaigns, pricing strategies, and cost control measures, empowering them to make data-driven decisions that positively impact their financial performance.

Financial Planning

Effective financial planning is crucial for flower shops to achieve their financial goals. It involves creating budgets, setting financial targets, and developing strategies to attain those goals. Flower shop owners can collaborate with their accountants to develop tax planning strategies that align with their financial objectives.

By analyzing expenses, projecting income, and estimating tax liabilities, they can proactively plan for their tax payments and take advantage of available tax incentives. Financial planning entails allocating funds for potential tax liabilities so that flower shops have sufficient resources to meet their obligations without impacting their daily operations.

Flower shop owners can confidently steer through tax season, maximize their tax benefits, and secure the financial well-being of their businesses by adopting these sound financial management strategies.

Local Accounting Solutions for Flower Shops in South Jersey

Navigating the financial complexities of a flower shop can be pretty challenging, especially when tax season rolls around. For that reason, you want to rely on the expertise of a local who can help you manage your flower’s shop financial future.

Some of the benefits of using a local accountant include:

Expertise in the Floral Industry

Accountants specializing in flower shops can offer customized financial advice that considers the industry’s unique challenges and regulations. They are well-versed in the seasonal nature of the business, the need for effective inventory management of perishable goods, and other financial considerations specific to the floral industry.

Personalized Support

Collaborating with a local accountant promotes a solid working relationship, allowing you to get tailored assistance and customized financial solutions. They can offer practical guidance and recommendations that consider your business’s specific requirements and objectives, helping you make well-informed financial choices.

Knowledge of Local Tax Laws

Local accountants have extensive knowledge of the tax laws in South Jersey. They ensure that individuals and businesses comply with these laws while maximizing any tax benefits. These professionals can effectively navigate the complexities of tax regulations, help flower shop owners understand their tax obligations, and identify potential deductions and credits to minimize tax liabilities.

The Services Offered by Small Business Accounting Services

Many professional services can help your South Jersey florist shop. Consider hiring a financial team to help with both accounting and bookkeeping for your business.

Maintaining accurate bookkeeping is essential for effective financial management. Hiring local accountants to handle daily financial transactions can ensure up-to-date and precise records. They can monitor income and expenses, reconcile bank statements, and provide regular financial reports to help you understand your financial status.

Many accountants in the area provide technological solutions to make accounting processes easier and more efficient. These solutions offer up-to-date financial information and help with decision-making. They can suggest accounting software and set up online invoicing and payment systems. These professionals also provide guidance and assistance to ensure seamless integration into your shop’s day-to-day operations.

Managing employee payroll can be a challenging and time-consuming task. However, local accountants can provide efficient payroll management services that ensure accurate payroll processing and compliance with employment regulations. These professionals can calculate wages, deduct taxes and benefits, prepare payroll reports, and ensure timely and accurate employee payments. With their assistance, you can streamline your payroll processes and avoid costly errors.

As a flower shop owner, you might offer employee benefits like health insurance and retirement plans. If you want to manage these benefits, seek the assistance of a local accounting team. They can help you select appropriate benefit plans and handle enrollment and eligibility processes. Additionally, they will ensure compliance with legal requirements, saving you administrative headaches.

If you’re a flower shop owner in South Jersey, local accountants can offer helpful guidance on tax planning. They have expertise in ensuring compliance with tax laws and optimizing your deductions and credits. They can analyze your financial data, recommend effective tax strategies, prepare and file your tax returns, and even represent you in case of any tax audits or disputes.

Tips for Choosing the Right Local Accountant

If you’re looking for a local accountant for your flower shop, there are a few essential factors you should consider:

Industry Experience

Finding an accountant with experience working with floral businesses is important. They will have valuable industry-specific knowledge and insights and can offer tailored solutions to the unique financial challenges faced by flower shops.

Reputation and References

Research the accountant’s reputation and ask for references from other flower shop owners who have worked with them. Positive feedback and testimonials from satisfied clients can indicate their competence and reliability.

Technology Solutions

You will want to inquire about the technology, tools, and software the accountant uses to manage your finances. It is important to ensure they are up to date with accounting software and can use technology to enhance the efficiency and accuracy of their services.

Personalized Attention

You also want to find an accountant willing to provide personalized attention and support that caters to the unique needs of your flower shop. A proactive and responsive accountant who takes the time to understand your business can provide valuable insights and guidance.

Contact the Best Florist Accounting Services in South Jersey

Flower shops in South Jersey need effective financial management to thrive and succeed during tax season and beyond. If you’re looking for personalized and specialized accounting services, contact TMD Accounting. Our tailored solutions and industry-specific knowledge can help your flower shop flourish in the tough financial landscape, allowing you to focus on creating stunning floral arrangements and bringing happiness to your customers. Call 1-856-228-2205 to schedule a consultation.

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.

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

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

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.

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.”

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.