Running a small business involves many financial tasks and responsibilities. Many small business owners turn to professional accountants to ensure accurate financial management and tax compliance. With that in mind, here is your ultimate guide to finding a small business accountant in New Jersey.
The Role of a Small Business Accountant
While some individuals may not want to spend money on this professional service, hiring a small business accountant is vital for effective financial management. It can be difficult to handle all of these responsibilities on your own. A small business accountant takes on the essential task of maintaining accurate and well-organized financial records. Their primary responsibilities include:
• Recording financial transactions
• Reconciling bank statements
• Tracking accounts payable and receivable
• Preparing financial statements such as balance sheets and income statements
An accountant can analyze financial data and provide meaningful insights to help you make informed decisions. These professionals can identify trends, spot potential financial risks or inefficiencies, and offer recommendations for improvement.
NJ small business accountants can assist with budgeting and forecasting. Developing a comprehensive budget and accurate financial forecasts are essential for small business’ success. They can create realistic budgets and forecasts based on historical data, market trends, and business goals.
Why Choose a Local Accountant in NJ
There are several advantages to hiring a local New Jersey accountant. They possess knowledge of the local business environment, are well-versed in state-specific tax regulations, and understand industry-specific challenges. In addition, the convenience of face-to-face meetings and access to local networking opportunities contribute to a more personalized and efficient financial management experience for your small business. Let’s take a deeper look at these benefits of working with a local accountant.
First, a local accountant in New Jersey has first-hand knowledge of the local business landscape firsthand. They understand the state’s economic trends, market conditions, and unique challenges. This familiarity allows them to provide tailored financial advice and strategies that align with the unique needs of your business.
Tax regulations vary from state to state, and New Jersey has its own tax laws and requirements. Hiring a local accountant ensures you have a professional well-versed in the state’s tax regulations. They can help you navigate complex tax codes, maximize tax deductions, and comply with New Jersey tax laws.
Different industries have their financial intricacies and challenges. Whether you operate an automotive shop or offer healthcare services, you can benefit from a local accountant’s understanding of your industry’s specific challenges and opportunities.
Working with a local accountant allows for face-to-face meetings, fostering a more personal and collaborative relationship. In-person interactions provide the opportunity to discuss financial matters in depth, ask questions, and receive immediate feedback. This level of personalized service can lead to a better understanding of your business’s financial goals and enable the accountant to offer more tailored advice.
Local accountants in New Jersey often have established networks within the business community. They can introduce you to potential partners, clients, or resources that can benefit your business through their connections. These networking opportunities can open doors for collaborations, referrals, and other mutually beneficial relationships that can contribute to your business’s growth.
Whether you need contractor accounting services or an outsourced restaurant accounting professional, hiring a local team means having easy access to all of their services. A local accountant is always there to provide support and ensure a quick response time, enabling you to address financial issues promptly and effectively.
Qualities to Look for in a Small Business Accountant
Several important factors must be considered when selecting an accountant for your small business. First, you will want to find individuals with the necessary qualifications and certifications, such as the Certified Public Accountant (CPA) designation. This designation highlights their expertise in accounting and adherence to professional standards since they have passed rigorous exams and often continue their education to stay current on accounting principles and practices.
You also want to look for an accountant with relevant experience working with small businesses, preferably in a similar industry. A track record of helping small businesses can provide valuable insight and expertise to help you navigate financial challenges and make informed decisions.
Effective communication is also critical when working with an accountant. Look for someone who can explain complex financial concepts clearly and understandably. A good accountant should actively listen to your concerns, ask relevant questions, and provide accurate and concise explanations to ensure that you understand the financial status of your business.
Additionally, a proactive and analytical accountant can add significant value to your small business. They should proactively identify potential financial risks, suggest improvements, and offer strategic advice. A solid analytical mindset allows accountants to analyze financial data, identify trends, and provide meaningful insights to help you optimize your financial performance.
Finally, trust is crucial in any professional relationship, especially when handling your business’s finances. You should get recommendations and read client testimonials to find an accountant with a solid reputation for trustworthiness and reliability. A reputable accountant will prioritize your business’s best interests and maintain the highest level of professionalism and confidentiality.
If you’re a small business owner in NJ, you know how important it is to have a reliable and professional accountant by your side. You need someone who can handle your taxes, bookkeeping, payroll, and financial planning with accuracy and efficiency. You need someone who can advise you on the best strategies to grow your business and save money. You need someone who can be your trusted partner and ally.
But finding the best small business accountant in NJ is not easy. There are many accountants out there who claim to be experts, but not all of them have the experience, expertise, communication skills, and trustworthiness that you deserve. How do you know who to choose? How do you know who can deliver the results you need?
That’s where we come in. We are TMD Accounting, a team of certified public accountants who specialize in serving small businesses in south jersey. We have over 20 years of experience in helping small businesses like yours succeed in their industries. We offer personalized and customized accounting services that fit your specific needs and goals. We work with you as a partner, not just a vendor.
In this post, we’ll show you why we are the best small business accountant in NJ for your industry. We’ll explain what sets us apart from other accountants, how we tailor our services to your industry, and how you can get started with us today.
How NJ Small Business Accountants Can Help You Save Time and Money
One of the main benefits of hiring a small business accountant in NJ is that they can help you save time and money. As a small business owner, you have a lot on your plate. You have to manage your operations, marketing, sales, customer service, and more. You don’t have time to deal with the complex and tedious tasks of accounting.
By outsourcing your accounting to a professional, you can free up your time to focus on the core aspects of your business. You can also save money by avoiding costly mistakes, penalties, and fees. You can also benefit from the expert advice and guidance of an accountant who can help you optimize your tax situation and financial performance.
Why You Need a South Jersey Accountant to Handle Your Taxes and Finances
Another reason why you need a small business accountant in NJ is that they can handle your taxes and finances better than you can. Taxes are complicated and constantly changing. You need someone who knows the latest tax laws and regulations that apply to your business. You need someone who can help you plan ahead and minimize your tax liability.
A small business accountant can help you with all aspects of tax planning and preparation, such as:
Choosing the best legal structure for your business
Determining the best accounting method for your business
Identifying and claiming all the tax deductions and credits that you qualify for
Filing your federal, state, and local tax returns on time and accurately
Paying your estimated taxes throughout the year
Dealing with any tax notices or audits from the IRS or other authorities
A small business accountant can also help you with your financial management, such as:
Setting up and maintaining your accounting system
Reconciling your bank accounts and credit cards
Recording and categorizing your transactions
Generating and reviewing your financial statements
Monitoring your key performance indicators
Evaluating your profitability and growth potential
A small business accountant can help you understand your financial situation better and make informed decisions for your business. They can also help you secure financing or funding from lenders or investors by preparing professional financial reports and projections.
How We Tailor Our Services to Your Industry
We know that every industry has its own unique characteristics, opportunities, and challenges. That’s why we don’t offer generic accounting services; we offer customized accounting services that match your industry needs.
We serve a variety of industries in south jersey, including:
At our firm, we specialize in assisting automotive shop owners with a comprehensive range of accounting services designed to meet the unique needs of your automotive business. We understand the intricacies of the automotive industry and the specific financial challenges you face. Here’s how our tailored services can benefit your automotive shop:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with tax laws.
We take care of your payroll processing, ensuring timely and accurate payment to your employees.
Our financial reporting provides you with clear insights into your shop’s financial health and performance.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools specifically tailored to the automotive industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations.
Inventory Management, Cost of Goods Sold (COGS), and Depreciation:
We help you effectively manage your inventory, ensuring efficient stock control and minimizing waste.
Our team calculates the cost of goods sold (COGS) accurately, allowing you to understand your profit margins better.
We assist you in managing depreciation for your assets, optimizing tax deductions and improving cash flow.
Sales Tax, Excise Tax, and Other Industry-Specific Taxes:
We navigate the complex landscape of sales tax, excise tax, and other industry-specific taxes on your behalf.
Our team ensures compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you maintain a healthy cash flow by implementing effective cash management strategies.
Our team assists in creating budgets and financial forecasts, allowing you to make informed business decisions.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to help you compare your shop’s performance to industry standards.
Our expertise allows us to offer recommendations and insights to improve your operational and financial efficiency.
As experts in accounting for construction contractors, we understand the unique financial intricacies and challenges faced by your industry. Our specialized accounting services are designed to address these specific needs and help your construction business thrive. Here’s how our tailored services can benefit your construction contracting firm:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your construction projects.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with tax laws specific to the construction industry.
We take care of your payroll processing, ensuring timely and accurate payment to your employees and subcontractors.
Our financial reporting provides you with clear insights into the financial performance of individual projects and your overall business.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to the construction industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and project management.
Job Costing, Change Orders, and Progress Billing:
We help you accurately track job costs, including labor, materials, and overhead expenses, to ensure project profitability.
Our team assists with change order management, ensuring proper documentation and accounting for additional project scope.
We provide guidance on progress billing, enabling you to invoice clients based on project milestones and achieve consistent cash flow.
Contractor Licenses, Bonds, and Insurance:
We assist with navigating the complex landscape of contractor licenses, bonds, and insurance requirements.
Our team ensures compliance with regulatory obligations, minimizing the risk of penalties and legal issues.
Sales Tax, Use Tax, and Other Industry-Specific Taxes:
We handle the intricacies of sales tax, use tax, and other construction industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively by implementing strategies tailored to the construction industry’s unique payment cycles.
Our team assists in creating budgets and financial forecasts, allowing you to plan and allocate resources effectively.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your construction business’s performance.
Our expertise allows us to offer recommendations and insights to improve your operational and financial efficiency.
By leveraging our specialized knowledge and experience in accounting for construction contractors, you can focus on delivering quality projects while having confidence in the financial management of your business. Contact us today to discuss how our tailored accounting services can benefit your construction contracting firm.
We understand the unique financial and regulatory challenges faced by healthcare practitioners and medical practices. Our specialized accounting services are designed to address these specific needs and help your healthcare practice thrive. Here’s how our tailored services can benefit your practice:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your medical practice.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with healthcare industry-specific tax regulations.
We take care of your payroll processing, including managing physician compensation and tracking employee benefits.
Our financial reporting provides you with clear insights into the financial performance of your practice, including revenue streams, expenses, and profitability.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to the healthcare industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and enhance patient billing and collections.
Revenue Cycle Management, Billing, and Collections:
We help you optimize your revenue cycle management, ensuring accurate coding, timely billing, and effective collections.
Our team assists with patient billing, insurance claims, and reimbursement processes, minimizing revenue leakage and improving cash flow.
Medical Coding, Compliance, and Audits:
We provide guidance on medical coding practices, ensuring accurate documentation and compliance with coding standards.
Our team assists with compliance audits, helping you prepare for and navigate regulatory inspections and requirements.
Sales Tax, Payroll Tax, and Other Industry-Specific Taxes:
We handle the complexities of sales tax, payroll tax, and other healthcare industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively, considering the unique revenue streams and payment cycles in the healthcare industry.
Our team assists in creating budgets and financial forecasts, allowing you to plan and allocate resources effectively.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your healthcare practice’s financial performance and identify areas for improvement.
Our expertise allows us to offer recommendations and insights to optimize your operational and financial efficiency.
By leveraging our specialized knowledge and experience in accounting for healthcare practices, you can focus on providing excellent patient care while having confidence in the financial management of your practice. Contact us today to discuss how our tailored accounting services can benefit your healthcare practice.
We understand the unique financial considerations and challenges faced by professional service providers. Whether you’re a consultant, lawyer, marketing agency, or any other professional service business, our specialized accounting services are designed to address your specific needs and help your firm thrive. Here’s how our tailored services can benefit your professional services business:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your professional services business.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with industry-specific tax regulations.
We take care of your payroll processing, including managing employee compensation, benefits, and tax obligations.
Our financial reporting provides you with clear insights into your firm’s financial performance, including revenue, expenses, and profitability.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to professional services businesses.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and enhance productivity.
Invoicing, Payment Processing, and Accounts Receivable:
We help you optimize your invoicing and payment processes, ensuring timely and accurate billing to clients.
Time Tracking, Expense Tracking, and Mileage Tracking:
We provide guidance on time tracking, expense recording, and mileage tracking systems to help you accurately capture billable hours and expenses.
Our team ensures that you can maximize your revenue by capturing all billable activities and properly accounting for business-related expenses.
Sales Tax, Income Tax, and Other Industry-Specific Taxes:
We handle the complexities of sales tax, income tax, and other industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively, considering the unique revenue cycles and project-based nature of professional services.
Our team assists in creating budgets and financial forecasts, enabling you to plan and allocate resources efficiently.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your professional services business’s financial performance.
Our expertise allows us to offer recommendations and insights to improve operational and financial efficiency, enhancing your profitability.
By leveraging our specialized knowledge and experience in accounting for professional services businesses, you can focus on delivering high-quality services to your clients while having confidence in the financial management of your firm. Contact us today to discuss how our tailored accounting services can benefit your professional services business.
We understand the unique financial dynamics and challenges faced by restaurant owners and operators. Our specialized accounting services are designed to address these specific needs and help your restaurant business thrive. Here’s how our tailored services can benefit your establishment:
Bookkeeping, Tax Preparation, Payroll, and Financial Reporting:
We handle all aspects of your bookkeeping, ensuring accurate and up-to-date financial records for your restaurant.
Our team prepares your tax returns, maximizing deductions and ensuring compliance with restaurant industry-specific tax regulations.
We take care of your payroll processing, including managing wages, tips, and tax obligations for your restaurant staff.
Our financial reporting provides you with clear insights into your restaurant’s financial performance, including revenue, expenses, and profitability.
Industry-Specific Accounting Tools and Software:
We offer expert advice on selecting the best accounting software and tools tailored specifically to the restaurant industry.
Our team assists you in implementing and optimizing these tools to streamline your financial operations and enhance cost control.
Food Cost Analysis, Menu Pricing, and Profit Margin Optimization:
We help you analyze food costs, identify cost-saving opportunities, and optimize your menu pricing for maximum profitability.
Our team provides insights into ingredient costs, portion control, and menu engineering to enhance your bottom line.
Inventory Management, Waste Reduction, and Theft Prevention:
We assist you in implementing effective inventory management systems to control costs, minimize waste, and prevent theft.
Our team helps you optimize stock levels, track ingredient usage, and implement safeguards to protect your restaurant’s assets.
Sales Tax, Tip Reporting, and Other Industry-Specific Taxes:
We navigate the complexities of sales tax, tip reporting, and other restaurant industry-specific taxes on your behalf.
Our team ensures accurate compliance with tax regulations, minimizing the risk of penalties and optimizing tax liabilities.
Cash Flow Management and Budgeting:
We help you manage cash flow effectively, considering the unique revenue and expense cycles in the restaurant industry.
Our team assists in creating budgets and financial forecasts, enabling you to plan and allocate resources efficiently.
Industry Benchmarks and Best Practices:
We provide you with valuable industry benchmarks and best practices to evaluate your restaurant’s financial performance and identify areas for improvement.
Our expertise allows us to offer recommendations and insights to enhance operational and financial efficiency.
By leveraging our specialized knowledge and experience in accounting for restaurants, you can focus on delivering exceptional dining experiences while having confidence in the financial management of your establishment. Contact us today to discuss how our tailored accounting services can benefit your restaurant business.
How to Get Started With Us Today
If you’re looking for the best small business accountant in NJ for your industry, look no further than TMD Accounting. We are ready to help you take your business to the next level.
To get started with us today, simply contact us for a free consultation. We’ll discuss your business goals and challenges and how we can help you achieve them. We’ll also provide you with a customized quote for our services.
Don’t wait any longer. Contact us today and let us show you why we are the best small business accountant in NJ for your industry. You’ll be glad you did.
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.
There is no question that every small business owner dreads the arrival of tax season. Between gathering all the information you will need to complete your taxes, finding all the forms necessary and then completing all those forms, it can be frustrating, time-consuming and stressful. Add to that the possibility you could have to write a hefty check to the government, and it is easy to see why businesses may not look forward to filing taxes. TMD Accounting offers these tips to help you avoid a big payment on April 15.
Understand Tax Obligations
As a business owner, there are more things to consider than filing your return at the end of the year. You need to understand what taxes need to be filed each year in order to enter the correct information on your tax forms. As a small business owner, you may be subject to self-employment tax as well as income tax. If you have employees, you must also file quarterly employment taxes. States with sales tax also require that you file those quarterly while some states require corporations to pay franchise tax. This may be once each year or also may be needed quarterly. If you must pay indirect taxes on goods sold, known as excise tax, you will need that information as well.
The 30 Percent Rule
One method many small business owners use, according to small business accounting services, is the 30 percent rule. Setting aside 30 to 40 percent of your revenue should cover the amount due on your federal and state taxes each year. This is highly recommended for sole proprietors who don’t have employees as they are more likely to owe at the end of the year than an LLC or a corporation. You can accomplish this a number of ways. One way is to place 30 percent of every client payment into a business savings account. This is a great way to save toward a tax bill if you have a small number of clients who only pay you a once or twice a month. If you have a higher volume of clients, however, you can simply total your income for a week or the entire month and put 30 percent of that total in an account.
Monthly Method
Another way to determine what to put away for taxes a South Jersey accountant says is to calculate your average monthly income. Add up the total amount you have earned and divide it by the months you earned it. For instance, if it is April, add up your income from January through March and divide it by three to get your average monthly income. Once you have determined that figure, calculate 30 percent of the average monthly income and place that in an account. You can also calculate this amount by using the previous year’s income. Simply divide your entire revenue by 12 and then compute 30 percent.
Underestimating or Overestimating Taxes
According to TMD Accounting, as long as you pay 100 percent in the present year that you paid in the previous year in quarterly estimated tax, you can’t be penalized for underpaying. If your income is over $150,000, that number rises to 110 percent. You will know if you have underestimated when it comes time to file your taxes as you will have a balance owed to the IRS when you finish computing your income and expenses. There is no penalty for overestimating. However, those funds that you set aside could have been used in other areas of your business. The good news is that if you overestimated what you would owe, you have funds in your account that can be applied to the next year.
Even better news is that the funds will continue to earn interest until you need to use them for your taxes the following year. However, don’t make a habit of overestimating as that is pulling money from your business you could be using. If you consistently find yourself over or underestimating taxes, it may be time to talk to small business accounting services to be sure you are not assessed a penalty or tie up funds unnecessarily. The good news is that if you overestimated what you would owe, you have funds in your account that can be applied to the next year.
When Should I Start Setting Aside Funds?
The best time to start setting aside funds for taxes, according to a South Jersey accountant is as early in the year as possible. Taxes don’t take a break which means as soon as the new year rolls around, you need to move past the previous year and start fresh for the new year. If your fiscal year is the same as a calendar year, start putting money away as of January 1. If your fiscal year is different, such as from July 1 to June 30, begin putting money away on July 1. Even if you have not paid your taxes for the previous year, you can still tuck the funds away.
When Do Taxes Have to be Paid?
If you anticipate that you will owe more than $1,000 for the year, taxes must be paid quarterly. Income earned from January 1 to March 31 must be paid by April 15 while April 1 through May 31 must be paid by June 15. Any income earned from June 1 to August 31 is due by September 15 and September 1 through December 31 taxes paid by January 15 of the following year.
If you are struggling to prepare for tax season, it is time to call TMD Accounting. With 40 years’ experience with small business accounting services, TMD Accounting can help you get your taxes filed and make sure you pay only the amount you are required to pay. Contact our experienced team today by calling 1-856-228-2205 or by visiting our website.
As a small business or startup owner, you want to ensure your enterprise thrives. While you may want to focus on your company, you need to take care of those other matters, such as financial planning and taxes. It may be time to seek professional help. Working with a certified public accountant (CPA) is an excellent way to ensure you make the most of your financial success.
Not only will an accountant help you with the necessary forms and paperwork, but they can also provide you with valuable advice on financial planning and projections. Together, you can get help to set realistic and achievable financial goals for the future, ensuring continued success for your business.
Do You Need a CPA for Your Business or Startup?
Knowing when to hire a certified public accountant is half the battle. While there is no set time for every small business owner to hire a professional, some signs indicate you might need one.
No Experience With Financial Matters
If you are starting your business and are unfamiliar with accounting basics, a CPA can help you develop your financial strategy, teach you how to manage your finances, and ensure that you avoid mistakes that could cost you in the long run.
Need to Establish a Legal Structure for Your Business
When deciding on your company’s legal structure, an accountant can explain the options available, helping you choose the best one for your business or startup. Many business owners need to become more familiar with business taxes since most have only filed personal taxes in the past. A CPA can ensure you pay the right taxes for your business type and industry. They can also help you take advantage of tax credits and deductions to save money.
Require Help With an IRS Audit
If your business is growing rapidly, an accountant can manage your cash flow, help you use your money more effectively, and identify areas where you can cut expenses. Unfortunately, there are times when you could face an audit from the IRS. In that scenario, a certified public accountant can guide you through the process and ensure that you comply with tax laws.
Find Funding for Your Business
Finally, if you need a small business loan, an accountant can help you prepare the financial documents required by lenders and ensure that your loan application is well-organized and detailed. When looking for a company that offers small business accounting services, here are a few tips to choose the right professional for the job.
Finding the Right CPA for Your Situation
A business accountant can benefit your company at every stage of its growth. From managing finances to providing valuable insights and advice, the right accountant can be your business’s trusted advisor. You want to ensure you find the right fit for your small business or startup.
Search for Referrals
First, ask for referrals from lawyers, business advisors, bankers, and other professionals. Many of them have worked with CPAs that they trust for their financials. You may even want to attend local business events hosted by your Chamber of Commerce. Also, utilize your existing networks, such as family, friends, and colleagues. Someone is bound to know a reputable CPA to help your business or startup.
Skip the Internet
Finding a trustworthy business accountant is crucial for the success and growth of your company. While you may come across multiple options by doing a quick online search, you may want to avoid hiring someone you find on Google or online directories. Some CPAs may pay to add their names to a list of local business professionals. However, you don’t have to discount an online search completely. If you cannot find a personal referral, use the internet to read reviews about the local CPAs in your area.
Choose a Certified Public Accountant
Keep in mind that not all accountants are the same. Working with a certified public accountant can provide numerous benefits for your business’s financial health. CPAs have passed a rigorous examination and must be licensed. That ensures they possess the necessary knowledge and experience to provide reliable financial advice.
Additionally, a CPA’s certification must be periodically renewed to keep their skills and knowledge current with the industry’s standards. Many business owners and startups want to work with a CPA to get a handle on their business finances.
If you’re looking for a CPA, you can start your search by reaching out to the American Institute of Certified Public Accountants (AICPA). The AICPA maintains a directory of CPAs, accounting firms, and accounting organizations that can connect you with the right professional.
Once you have found a CPA, ask them a few questions. First, find out the accountant’s experience with small businesses or startups. A qualified accountant should understand the complexities of running a small company. Along with that, they should have references from past clients. Also, ask if the accountant has experience in your specific industry. You will want to work with someone who understands your business’s needs.
Make sure to also inquire about their services. Many of these professionals provide tax and auditing assistance. However, other CPAs can offer to help with bookkeeping, business valuation, or budgeting. Additionally, ask about the billing process. Most accountants charge by the hour or offer a monthly retainer.
Need an Accountant for My Small Business?
At TMD Accounting, we provide you with the flexibility, dependability, and affordability you need in an accounting firm. With over 40 years of experience serving Gloucester County, we have helped numerous small businesses and startups manage their financial health. If you would like to schedule a consultation, call us at 856-228-2205.
While running your business, you might not have time to analyze financial numbers. However, knowing how decisions affect your company’s financial health is crucial. When you review your books and records, you can make plans to grow your business. It is time to become familiar with a comparative income statement if you want to boost your profits. Here is how this financial statement can help your small business.
Is This Document the Same as an Income Statement?
Some people may refer to an income statement as a profit and loss statement. No matter the name, the report shows your sales minus any expenses. At the top of the statement, you will see the number of sales earned in a period. After that, the business expenses are deducted, giving you a net profit at the bottom of the statement. This income statement can show how your business decisions affect the net income for that period.
Looking at an individual statement will only give you the results for one specific period. In many cases, you will want to compare one period to another to see the long-term effects of your decisions. That is where a comparative income statement can help. If you need help compiling an income statement, any company offering small business accounting services can assist you with that document.
Is a Comparative Income Statement Important?
A comparative income statement will combine the information from several statements into a single report. This statement can help you measure your business performance and identify financial trends. It also allows you to compare your profits and losses to other businesses. The statement is usually organized into two or three columns representing an accounting period. The most recent periods are usually closer to the left side of the page.
A comparative income statement can assist with many types of accounting tasks, such as:
Provide a review of the business’s performance
Compare profit and losses to previous periods
Determine a pattern in sales
Measure your business against others
A comparative income statement makes an excellent tool for business owners. For instance, an income statement might tell you that sales dip every April. You can boost your marketing efforts for the month when you have access to that specific information.
When you compare several financial statements, you can see a trend in performance. Comparing reports is time-consuming and confusing, but this statement allows you to track your business’s performance trends. With a comparative income statement, you will not have to flip between the documents. You have all that information right in front of you.
How to Read a Comparative Income Statement
If you want to understand your business’s financial data, take a look at your comparative income statement. You will want to analyze the information in two ways: horizontally and vertically. With these types of analyses, you can understand the business’s performance. Additionally, the statement can help you see patterns to help predict future trends.
Horizontal Analysis
The horizontal analysis examines your business’s trends over a period of time. It can help you see growth patterns. To calculate growth rates, you need to analyze the change percentage between accounting periods. If you want to find the change in the percentage between two numbers, you need to determine the difference in dollar changes for each period. For example, if you gain $55,000 in 2021 and $60,000 in 2022, then your business’s dollar change is $5,000.
You can divide the dollar change amount by the year’s profit. For example, if the base year profit is $55,000 for 2021, then the result is 0.09 ($5,000 / $55,000 = 0.09). After getting that number, you will want to multiply the result (0.09) by 100. With that, you will have the percentage of change. For this specific example, there is a 9% change.
Vertical Analysis
Vertical analysis helps compare the size of different line items in a financial report. To use vertical analysis, you have to divide each line item by the total amount of revenue from a product or service. After that, you can multiply that number by 100 to get your business’s percentage. With that, the number tells you what percentage of each dollar was earned as profit.
Why Are Comparative Income Statements Crucial?
You have to measure performance when you are a small business owner. When you don’t understand a comparative income statement, you might not know whether your decisions work for your business. Additionally, these statements help you track profitability over several periods.
The comparative income statement shows you how your business has performed. For example, you can compare your return on investment (ROI) from last year to the current year. When it comes time to sell the company, some buyers will use comparative income statements to determine whether the business is a good investment.
Accounting is a challenging part of running a business. However, it can be an eye-opening experience, especially when you review your financial statements. You want to know whether the time and effort are paying off for your business. A comparative income statement will provide detailed insight into your business’s financial health.
Contact the Professional Team at TMD Accounting
When you need an accountant for my small business, call TMD Accounting. We’ve served the Gloucester County area for over 40 years. Our team assists small business clients with their bookkeeping and accounting needs. To learn more about what our professionals can do for you, give us a call at 856-228-2205.
Tax planning and preparation are major challenges for small business owners. While you might be an expert in your area of business, that doesn’t mean that you are also an expert in the intricacies of Internal Revenue Service (IRS) rules and tax laws. The U.S. Tax Code is highly complex, and there are many ways that small businesses can encounter problems with their taxes. Here are some of the most common mistakes made by small businesses and encountered by TMD Accounting that you should avoid.
1. Choosing the Wrong Business Entity Structure
There are several different types of legal entity structures that you can choose for your business. Each of these structures has advantages and disadvantages. When you choose the wrong one, your business structure can expose your company to potential liability and result in higher taxes. The following types of structures are the most common:
Sole proprietorship
Limited liability company (LLC)
S-corporation
C-corporation
Partnership
Limited liability partnership (LLP)
Nonprofit
Some businesses choose the wrong tax entity while others fail to choose a structure at all. Either of these errors can greatly impact the future of your business. For example, while a sole proprietorship is the simplest structure for a business to form, it doesn’t provide any personal liability protection. Choosing a C-corporation structure for your company comes with many reporting and documentation requirements and can double the taxes you might owe. When you prepare to open your business, getting small business accounting services from TMD Accounting can help you select the most advantageous structure for your company.
Certain taxes must be filed every quarter, including payroll, estimated income, and sales taxes. Others must be filed annually, and you must also send your employees and contractors other forms directly so that they can file their tax returns.
Failing to file the right forms and submit payments on time can get your business in trouble. You might face high penalties from the IRS that could cripple your business. In certain cases, failing to file business tax returns or remit tax payments when they are owed could also expose your business to criminal liability.
3. Classifying Workers Improperly
Many businesses improperly classify their workers. For example, you might decide to classify your workers as independent contractors to try to save money on your tax bills. However, if you improperly classify workers, it could result in significant penalties. Make sure you understand the classification rules and follow them to avoid serious tax problems.
4. Underestimating Taxes or Underreporting Income
If you file your taxes as an S-corporation, partnership, or sole proprietorship, you will likely have to make quarterly estimated tax payments to the IRS. While you aren’t expected to guess how much your business will owe exactly, you are expected to be reasonably close. If you fail to make quarterly estimated tax payments or greatly underpay them, you could face a stiff penalty. If you understate the amount you owe by a substantial amount, the IRS might believe you were negligent and force you to pay a 20% penalty. If the IRS believes you tried to intentionally defraud the government, you could face a fine of up to 75% of the amount owed as well as criminal charges.
5. Commingling of Personal and Business Expenses
A major mistake that many small business owners make is mixing their personal and business funds and expenses. The IRS has strict rules against commingling personal and business funds. You can only deduct business expenses from your income and not personal expenses. To prevent you from deducting the wrong expenses, you must ensure your personal and business finances are kept separate. This means having a separate bank account for your business and only using a business credit card for business purchases and not your own. If you do use personal assets to operate your business, including your vehicle or a home office, you must keep detailed documentation to support your deductions.
6. Poor Organization and Record-Keeping
Failing to keep good records throughout the year can make tax time difficult. If you leave everything until the last minute, you’ll likely miss out on business deductions you would otherwise have been able to claim. Disorganized records and poor documentation can also result in higher small business accounting services fees when it’s time to prepare your business tax returns.
To prevent these problems, make sure you have a system to track your expenses and income on a continuing basis throughout the year. Each month, your cash flow, credit card statements, and bank account statements should be reconciled. You can use software to help manage your bookkeeping so that tax time will be smoother for both you and your accountant.
7. Taking Improper Deductions
The deductions you can claim for your business are those that are involved in the ordinary process of operating your company. You can review IRS Publication 535 to learn what is deductible. If you claim deductions for things that are improper, you could face an audit and potentially severe penalties. Even if you claim legitimate deductions, you could be penalized if they are out of sync with your business’s income or the deductions claimed by similar businesses in your industry.
If you report a loss for your business several years in a row, the IRS could decide that your venture is a hobby instead of a business. If that occurs, your ability to claim deductions could be disallowed completely.
Find an Accountant for My Small Business
The best way to avoid potential tax issues is to be honest and remain organized. Working with TMD Accounting can also help you avoid potential mistakes in preparing your taxes and claim all of the deductions to which your business should be entitled. To learn more, contact us today at 1-856-228-2205.
As a small business owner, you need to manage your cash flow. Any owner should understand how cash moves in and out of their business. Being aware of cash flow can help your daily operations. All companies need to have a plan that focuses on cash management. Here are a few tips to help with these tasks.
Prioritize Your Bills
When you receive an invoice, you may want to pay it right away. However, that is not always the best course of action. You should extend your payable for as long as possible so that you can spread out your payment. It is not a good idea to pay all bills at the same time. It could drain your business’s cash, which can strain your supplier and employee relationships, especially if you cannot pay on time.
Instead of paying immediately, you need to review your bills and sort them according to priority. By staggering payment days, you can take care of the most important bills first, such as payroll and rent. After that, focus on the bills that are less important and have more flexible payment dates. In some cases, you can get a discount for paying a bill before the due date. With that, you should prioritize those bills to help save some money.
Be careful with this tip. You always want to pay on time. Late payments can affect your credit and require you to pay late fees.
Select the Right Payment Cycle
When you need to pay your employees, schedule the payroll to match your revenue streams. Some businesses, like retail stores and restaurants, generate revenue on a daily basis. They can cover those costs for the weekly payroll. However, for companies with a slow revenue stream, it can be a challenge to meet payroll obligations. Some businesses will adjust their payroll cycle to a biweekly or monthly schedule. Make sure to follow all applicable state laws regarding wages. Some states may have requirements that businesses must follow for payroll frequency.
Negotiate Supplier Payments
In many cases, you can negotiate with a supplier regarding payments. If you have a great relationship with a supplier, they are more likely to work with you. Think about flexible payment options to manage your cash. Many suppliers will offer special payment terms, especially if you order regularly or in bulk. With a payment agreement with your supplier, you can get more time to settle those invoices.
Collect Receivables Quickly
When you need to manage your money, you should look at your cash flow. You can improve that flow by collecting receivables on a timely basis. There are a few ways to expedite the process of collecting receivables. First, request a deposit from customers when taking an order or project. You could also offer discounts for customers who pay quickly. Also, you may want to move outdated inventory with discounted prices. Finally, use online invoices that offer more payment options for your customers.
Manage Your Credit Policies
When you offer any credit to your customers, you must establish a few credit policies to manage your cash. For example, you will want to take a look at your invoicing. It is crucial to quickly send out the invoices and follow up with customers for payments. Before you extend any credit, make sure to require a credit check for all new customers. Those customers who pay late can hurt your available cash. You will want to identify those late payers and develop a cash-on-delivery policy for those who don’t pay on time.
Use a Business Credit Card
Many people might not want to open a new credit card. However, a business credit card can free up your cash to pay everyday expenses. When choosing a business credit card, you should find one with a rewards program. In some cases, you can reduce your costs and get a percentage back on a few purchases.
Track All Expenses
You must keep track of all your business expenses. Make sure to check your monthly statements. If you need help with this task, small business accounting services can help you keep track of your expenses and cash flow.
Open a Line of Credit
If you want to maintain a balanced cash flow cycle, consider opening up a line of credit to get quick access to cash. Many businesses have a line of credit to bridge any gaps between their receivables and payables. Also, a line of credit can help cover unexpected expenses, buy equipment, and help with growth opportunities.
Use the Latest Technology To Accept Payments
When you want to accept receivables quickly, consider using online payment methods to collect those bills. Along with that, the latest technology can help you track the payments of every customer.
Manage Your Business’s Cash
When you can monitor your cash flow, it can help with your business’s short- and long-term success. By collecting payments quickly, monitoring expenses, and negotiating with suppliers, you will have a few options to manage the cash flow in your business. If you want someone to handle these vital responsibilities, make sure to find an accountant for your business.
Find an Accountant for My Small Business
TMD Accounting has been serving the Gloucester County community for over 40 years. Our accounting firm is a family-owned and -operated business. We are an affordable, reliable, and flexible way to help manage your company’s financial health. Schedule your consultation by calling 856-228-2205.
