Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services

How to Determine Profit Margins on Services

Posted by Dennis Najjar on March 24, 2017

Understanding your profit margins is a critical component of healthy financial management. With a product-oriented business, profit margins are often largely focused on tangible goods and materials that are easily quantifiable. However, if you are in a service-based business, understanding profit margins can become a bit trickier. For services, determining profit margins requires looking into more intangible factors and qualitative factors to figure out whether your business is really getting a good ROI or not.

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Tags: improving sales, accounting services, job costing

When Disaster Strikes, Take These Accounting Steps

Posted by Dennis Najjar on March 23, 2017

When a flood, fire, hurricane or other disaster strikes your business, you may suffer heavy property damage along with lost sales during the time you're forced to close. Having a good understanding of the accounting rules related to natural disasters can help you fully account for your losses, reduce the economic harm to your business, and obtain financial relief through insurance, tax deductions and other sources.

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Tags: accounting, IRS, financial management

What Small Business Owners Need To Know About Balance Sheets

Posted by Kris Merritt on March 20, 2017

Many small businesses reliably produce a set of financial statements each year, listing assets and liabilities, revenue and expenses, cash flow and shareholder equity. Often, outsourced bookkeeping services prepare these reports, but the documents are quickly forgotten by business leaders as they focus on the day-to-day challenges of running the company — particularly since these documents are rarely required for tax preparation and other small-business reporting.

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Tags: Small Business Advice and Tips, small business bookkeeping, small business tips, financial statements

DCAA Regulation Basics for Small Businesses

Posted by Dennis Najjar on March 16, 2017

Small businesses are critical to the economy of the United States. Their performance as innovators and job creators consistently outperforms their larger corporate counterparts. In fact, in the post-recession years spanning mid-2009 to mid-2013, approximately 60 percent of net new jobs were created by companies with fewer than 500 employees. The federal government is committed to supporting small businesses, taking steps to ensure that contracts are awarded to companies of all sizes, not just major corporations.

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Tags: government accounting, dcaa compliant accounting, government contractor accounting

Ways To Improve Your Accounts Payable Department's Efficiencies

Posted by Dennis Najjar on March 13, 2017

Many businesses start with rather haphazard accounting practices, especially when it comes to accounts payable and accounts receivable. If books are maintained at all, odds are good the business is using the cash basis accounting practices, instead of the accrual method. And this can wreak havoc on accounts payable reports, especially as a business grows to a firm with annual revenue in the millions. How can you improve your accounting department's accounts payable procedures to make them more efficient?

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Tags: accounting strategies, accounting

Profits vs. Profitability: Why You Need to Track Profit Margins

Posted by Kris Merritt on March 9, 2017

You don’t need an MBA to know there are two basic ways to increase your profits: increase revenues or reduce costs. The smartest businesses implement marketing strategies and cost-cutting measures that do both, but far too many obsess so much over increased sales that they forget about the importance of trimming the fat, and end up actually reducing profits.

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Tags: accounting strategies, bookkeeping services, small business tips

What Motivated Our Clients To Seek Outsourced Bookkeeping Services?

Posted by Bill Gerber on March 7, 2017

We talk a lot about the importance of having solid accounting processes and procedures in place to govern your bookkeeping. We discuss how bookkeepers, controllers and CFOs can be strategically aligned to produce advanced insights into even the most complex accounting structures. But we don’t often spend a lot of time on the downsides in the accounting department—partly because the topic is often pretty negative in the grand scheme of things. After all, the vast majority of our clients end up coming to us only after experiencing some of the worst problems in accounting and bookkeeping.

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Tags: fraud protection, accounting processes, outsourced bookkeeping services

Moving On and Up: Accounting Options for Growing Startups

Posted by Bill Gerber on March 2, 2017

 

As your business grows from a start-up to a full-fledged established company, you'll have more decisions to make when it comes to accounting. See what options exist and how to determine which one is right for your company's success.

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Tags: startups, outsourced bookkeeping services

How Business Intelligence Influences SMB Accounting Practices

Posted by Dennis Najjar on February 28, 2017

Bookkeeping services are essential because they provide unified fiscal oversight you can't get from any other source. Of course, even the most comprehensive accounting practices beg the age-old question, "Who watches the watchers?" Luckily, the business intelligence techniques you employ in other areas may provide an answer.

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Tags: accounting processes, key performance indicators, business intelligence

Cash or Accrual Accounting: How to Decide and What Happens if You Change Your Mind?

Posted by Dennis Najjar on February 21, 2017

The accounting method you choose to use can determine you show a profit in a given year. This directly affects your business income taxes, and it may also impact whether you are able to obtain a loan or raise investments. Unlike other tax or accounting choices, you can't choose what's best from year to year — you have to make a choice and stick with it for the long term.

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Tags: accounting strategies, accounting metrics, accrual basis accounting, cash basis