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5 Essential Business Tasks to Outsource for Maximum Growth and Efficiency

Two business owners holding a document and smiling, discussing a business deal.

5 Essential Business Tasks to Outsource for Maximum Growth and Efficiency

January 10, 2023

Two business owners holding a document and smiling, discussing a business deal.

peakreliance

Accounting, Bookkeeping

When you’re just getting started with your business, it can feel like there are a million things you need to do. In fact, that’s probably accurate! There are a million little details and tasks involved in starting and maintaining any business. However, not all of them are essential to the success of your company. You don’t need to do everything yourself to make your business a success; in fact, there are lots of things you can outsource so you have more time and energy to focus on what matters most. Outsourcing is an excellent way for small businesses to keep costs low while focusing on their core competencies. Here are 5 things you should outsource when building your business:

Lead generation

If you’re focusing on lead generation, your goal is to create and nurture leads so that you can turn them into paying customers. That’s a massive amount of work, and it’s not something that you should try and do in addition to everything else you’re doing. If you’re running your own lead generation campaigns, you’re taking away time and energy that could be spent on other tasks. Instead, hire a company to take over lead generation so that you can focus on sales and converting those leads into customers. There are lots of ways to generate leads, but businesses often struggle with finding ways to effectively nurture those leads. Hire a company to handle your lead generation so that you can focus on other parts of your business.

Virtual assistants

If you’re starting a business full-time, you’re likely working 60 to 80 hours a week. That’s a lot of time invested in your business. There is, however, no rule that says that you must do everything yourself. No one can do everything, and the only way to be effective is if you outsource the parts of your job that you don’t enjoy. If you hate marketing, take on the task of bookkeeping instead. If you hate sales, focus on product development instead. You get the idea: hire a virtual assistant to help you with the tasks that you don’t enjoy or aren’t good at. Not only will you get more done, but you’ll also have more energy to focus on what matters most.

Marketing

Marketing is essential to any business. However, not all marketing tactics are created equal. You might have a strong idea of which marketing channels will work best for your business, but that doesn’t mean that you’re good at executing those plans. A big mistake that many small businesses make is trying to do everything themselves when hiring a marketing agency would be a much more effective use of resources. If you’re not good at marketing, don’t waste your time trying to do it yourself. Instead, hire an agency to take care of your marketing so that you can focus on other tasks.

Bookkeeping

Bookkeeping is an essential aspect of most businesses, but it is not something that everyone enjoys doing. If you’re starting a small business, you may also have limited financial resources. You don’t have to hire an expensive accountant to do your books; in fact, you can hire professional bookkeepers to save you time and money. Outsourcing your bookkeeping will ensure that your financial records are accurate and up-to-date while freeing you up to focus on other tasks.

Technology

Building a business is a daunting task, and you’re probably feeling overwhelmed at this point. One of the best ways to feel less overwhelmed is to outsource technology tasks so that you can focus on the things that matter most. For instance, if you don’t have the time or expertise to create a website for your business, hire a website developer to build a site for you. Similarly, if you want to use marketing tools like email marketing or a CRM, but don’t want to spend the time learning how to use those tools, outsource those tasks instead.

Conclusion

Starting and growing a business is a lot of work, but it doesn’t have to be overwhelming. Not all of your tasks are essential to the success of your business, so it makes sense to outsource the things that you don’t need to do yourself. Outsourcing can help you to save time, money, and energy while ensuring that your business is successful.

Ready to take your business to the next level? Don’t waste any more time on non-essential tasks. Check out our pricing page now to see how Peak Reliance can help you with outsourcing. Want to learn more before making a decision? Give us a call at +1 (718) 218-5558 or send us an email at [email protected]. Let’s work together to maximize your growth and efficiency!

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Small Business Financing: A Comprehensive Guide to Understanding Your Options

Small Business Financing: A Comprehensive Guide to Understanding Your Options

Small Business Financing: A Comprehensive Guide to Understanding Your Options

January 5, 2023

Small Business Financing: A Comprehensive Guide to Understanding Your Options

peakreliance

Accounting, Bookkeeping, Taxes

Starting a small business is an exciting and potentially lucrative endeavor, but it requires significant financial resources. Securing the necessary funding to cover start-up costs, working capital and other expenses can be difficult and overwhelming. That’s why it’s important to understand the various small business financing options available. With this comprehensive guide, you’ll get a better understanding of the different financing methods available, so you can make the best decisions for your business. From traditional loans to venture capital and crowdfunding, you’ll get details on the advantages and disadvantages of each type of small business financing, so you can make an informed decision. With this guide, you’ll be better equipped to secure the right type of financing to help your business grow and succeed.

Types of Small Business Financing

There are several types of small business financing available to entrepreneurs, including traditional sources of financing, venture capital, crowdfunding, business credit cards and grants. Traditional sources of financing include bank loans and SBA loans, while venture capital includes angel investors and equity crowdfunding. Business credit cards let you make purchases now and pay them off over time, and grants are free money available to businesses in certain industries.

a. Traditional Sources of Financing

Traditional sources of small business financing include obtaining loans from banks and other lending institutions and taking out equity investments from individuals and companies.

Bank Loans – Bank loans are a common source of financing for small businesses. There are several types of bank loans, including secured and unsecured loans, lines of credit and term loans. Bank loans have fixed interest rates and repayment schedules, so they’re usually most appropriate for cash flow-intensive industries. One potential downside to bank loans is you may be required to put up collateral, like your house or other assets, to secure the loan. To qualify for a bank loan, you’ll typically need to demonstrate you have enough cash flow to repay the loan.

SBA Loans – The Small Business Administration (SBA) offers a wide variety of financing products, including the 7(a) Loan Program, which is available to qualified businesses seeking financing for machinery, equipment, inventory and real estate. The SBA’s Microloan Program provides loans under $50,000 to help very small businesses get started or expand. The SBA also offers the Certified Development Company program that provides loans to finance businesses in rural areas and low-income communities.

Equity Investments – You can also approach individuals and businesses for equity investments. Equity investors provide cash for your business in exchange for partial ownership, and they typically expect to profit from the business through the sale of shares or through dividend payments. Equity investments are appropriate for businesses that don’t require a lot of working capital and are already profitable.

Other Traditional Sources of Financing – In addition to bank loans and equity investments, there are several other traditional sources of financing available to small businesses, including credit card debt and factoring. Credit card debt requires you to pay a significant amount of interest, but it’s easy to obtain and can help you bridge the gap between payments. Factoring involves borrowing money against the amount your customers owe you.

b. Venture Capital

Venture capital is financing provided by an investor in exchange for a share of your company, equity. These investors are typically very wealthy individuals or companies that want to make a significant financial investment in a small business that has potential for significant growth. You may choose to take out venture capital if you don’t want to give up partial ownership of your company. However, venture capitalists typically have significant experience and connections to help your business succeed. You may wish to pursue venture capital if you don’t want to take out a loan, but you have a proven track record and the necessary collateral.

Angel Investors – Angel investors are individuals who provide money for start-up companies in exchange for partial ownership of the business. You may find angel investors at trade shows or conferences, on online investment networks or through referrals. Angel investors typically want a significant share of the company and may also want to sit on your board of directors. Angel investors are a good source of venture capital, but they may not be your best option if you’re looking for a lot of funding.

Equity Crowdfunding – Equity crowdfunding refers to raising money from a large number of investors who each contribute a small amount. These investors typically use crowdfunding platforms to invest in start-up businesses. Equity crowdfunding is often used to raise a relatively small amount of money. For example, a business might use it to fund a marketing campaign. Equity crowdfunding is appropriate for businesses that don’t require a large amount of funding, such as real estate investment trusts (REITs).

c. Crowdfunding

Crowdfunding is the process of raising money from a large number of people in exchange for rewards, such as goods or services. Crowdfunding platforms host these types of financing campaigns and typically charge a fee for helping companies facilitate these types of financing efforts. Crowdfunding is appropriate for businesses that need relatively small amounts of financing for items like advertising campaigns or product development, or for nonprofits that need funding for specific causes.

Advantages and Disadvantages of Each Type of Financing
  • Advantages of Bank Loans – Bank loans are often a suitable choice for small businesses, as they’re relatively easy to obtain and have predictable repayment terms. Bank loans are appropriate for businesses that need a moderate amount of financing. Bank loans may not be the best choice if you don’t have adequate collateral or a proven record of profitability.
  • Advantages of SBA Loans – SBA loans are particularly beneficial if you have a relatively new business that doesn’t have the necessary collateral. The SBA also provides many types of loans to accommodate businesses in different industries. SBA loans have competitive interest rates and may be flexible when it comes to repayment terms.
  • Advantages of Equity Investments – Equity investments are appropriate for businesses that are already profitable or have potential for significant growth. An equity investment can give you the financing you need without having to take on additional debt.
  • Advantages of Factoring – Factoring is a financing method that’s appropriate for businesses that have a steady flow of income. Factoring is often used to finance accounts receivable, which is money owed to your business by your customers.
  • Advantages of Crowdfunding – Crowdfunding is appropriate for businesses that need relatively small amounts of financing, such as startups or nonprofit organizations.
  • Advantages of Venture Capital – Venture capital is appropriate for businesses with significant growth potential. It may be difficult to obtain venture capital unless you have a proven track record and are willing to give up partial ownership of your company.
Tips for Applying for Financing
  • Bank Loans – When applying for a bank loan, you should have a clear financial plan, including a repayment schedule. You should also have collateral, such as real estate or stocks, to secure the loan. You may also need to provide a personal guarantee, which is a promise that you will repay the loan if your business fails.
  • SBA Loans – When applying for an SBA loan, make sure you meet the criteria and provide a thorough business plan. It’s also important to thoroughly document your financial history to show the SBA that you’re a reliable borrower.
  • Equity Investments – When applying for equity investments, make sure you have a clear business plan and a thorough understanding of your financial situation. In addition, you should already be generating significant revenue or you should have a clear vision for what you need the investment for.
  • Crowdfunding – When applying for crowdfunding, make sure you have a well-written plan and video. You should also carefully research potential crowdfunding platforms, as some are more reputable than others.
  • Venture Capital – When applying for venture capital, make sure you have a thorough business plan and a detailed pitch deck. You should also attend networking events and conferences to make connections and gain exposure.
Conclusion

Starting a business is an exciting endeavor and can be financially rewarding, but it can also be challenging. Before starting a business, it’s important to understand the different types of financing available, so you can make an informed decision about the type of financing you need. From traditional sources of financing, such as bank loans and SBA loans, to venture capital and crowdfunding, there are several financing options to choose from.

Need help finding the right financing option for your small business? Contact our team at +1 (718) 218-5558 or [email protected] for expert guidance and personalized recommendations. Don’t let the process of finding funding hold you back – let us help you take the next steps towards success.

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How to Prepare for a Smooth Year-End Bookkeeping and Accounting Process for Small Business Owners

Year End Bookkeeping and Accounting Checklist for Small Business Owners

How to Prepare for a Smooth Year-End Bookkeeping and Accounting Process for Small Business Owners

December 4, 2022

Year End Bookkeeping and Accounting Checklist for Small Business Owners

peakreliance

Accounting, Bookkeeping

As a small business owner, it’s important to stay organized and on top of bookkeeping and accounting processes. At the end of each year, it’s especially important to ensure that all of your financial information is up-to-date and accurate. Taking the time to properly prepare for your year-end bookkeeping and accounting process can make a huge difference in the overall success of your business. It’s a great way to ensure that your records are complete and accurate and that you’re in good financial standing with the IRS. With the right approach, you can make the most of your year-end bookkeeping and accounting process and have peace of mind that everything is in order. Read on to learn more about how to prepare for a smooth year-end bookkeeping and accounting process for small business owners.

Understanding the importance of year-end bookkeeping and accounting

Every business needs to have proper documentation of all financial transactions. Bookkeeping and accounting keep track of income and expenses so that you can properly report this information to the IRS. Your financial records are also used to create financial statements, such as balance sheets and profit and loss statements. The year-end bookkeeping and accounting process is an excellent opportunity to take a step back and look at the bigger picture. As a small business owner, you may find yourself so focused on daily operations that you may lose sight of the bigger picture. During your year-end bookkeeping and accounting process, you can take a step back and look at the bigger picture and find ways to improve how your business is run.

Gather financial documents

The first thing you’ll want to do during your year-end bookkeeping and accounting process is gathering all of the financial documents related to your business. You’ll want to gather documents such as receipts, invoices, payroll information, and tax records. Your receipts are a great place to start. Many small business owners use cash or a cash register, but keeping an accurate record of your cash flow can be tough. Having a record of your expenses is important, particularly if you plan on claiming these as deductions on your taxes. With an online accounting platform, such as Xero, you can easily record all of your receipts with the click of a button. You can even set up your receipts to be automatically uploaded to your books so you don’t have to worry about losing track of them.

Review financial statements

After you’ve gathered all of your financial documents, it’s time to review them. You’ll want to review financial statements such as your profit and loss statement, your balance sheet, and your cash flow statement. You can use these documents to gain a better understanding of how your business performed during the year. These documents can help you identify areas of your business that may require improvement. For example, if your cash flow statement indicates a significant increase in cash outflow, you may want to review your financial records to see if you can identify a reason for this. Your profit and loss statement is an excellent way to view your business’ profitability at a glance. You can use your balance sheet to get a better understanding of the company’s financial health, including assets, liabilities, and equity.

Identify any discrepancies

One of the main reasons to review your financial documents during your year-end bookkeeping and accounting process is to identify any discrepancies. If you notice any discrepancies, you want to address them as soon as possible to avoid any issues with the IRS. Why take the time to identify and address any discrepancies? Let’s break it down:

  • Your financial records are used to report your taxes. If you don’t correct an error or discrepancy, it may result in inaccurate or incorrect tax information.  
  • Your financial records are used to apply for loans. If you don’t correct an error or discrepancy, you may not be approved for a loan. 
  • Your financial records are used to apply for grants. If you don’t correct an error or discrepancy, you may not be eligible for grant funds. 
  • Your financial records are used to apply for investors. If you don’t correct an error or discrepancy, you may lose interested investors.
Prepare financial forms and reports

As you identify discrepancies and make changes to your records, you’ll want to prepare financial forms and reports. The first financial form you’ll want to prepare is a profit and loss statement. Keep in mind that even though you’re preparing your profit and loss statement at the end of the year, you want to include information from the entire year. Your profit and loss statement is great for seeing how your business performed over the entire year. You’ll also want to prepare a balance sheet and a cash flow statement. You’ll also want to prepare a list of your business expenses. This is sometimes referred to as an outflow statement. Keep in mind that for expenses, you want to record the date and the amount you spent.

Review bank reconciliations

During your year-end bookkeeping and accounting process, you’ll want to take the time to review your bank reconciliations. A bank reconciliation is simply a review of your bank statements to make sure that your records and your bank statements are in sync. You can use your bank statements to make adjustments to your records if necessary. Your bank reconciliations are an excellent way to make sure that your financial records are up to date. If there are issues with your bank reconciliations, you want to address them as soon as possible.

Update accounts

Next, you’ll want to update your accounts and categorize your financial documents. You want to make sure that your accounts are updated with your financial information so that you can easily access it at any time. Your accounts should be set up in a way that makes sense for your business. You want to make sure that your information is easy to find and easy to understand.

File taxes

The final step in your year-end bookkeeping and accounting process is to file your taxes. At this point, you should have all of your financial information, such as financial statements, withheld taxes, and income and expenses documented. You can use this information to file your taxes. If you use accounting software such as Xero, you can prepare your taxes automatically. This means you can get them out of the way early and have them filed and in the hands of the IRS before the year ends.

Prepare for next year

During your year-end bookkeeping and accounting process, you can also take the time to prepare for next year. Make sure that all of your financial information is up-to-date and accurate.  Identify areas of improvement and make changes to your business operations accordingly. Organize your financial records so that they are easy to find and understand. These are excellent steps to take to ensure that your business is in great shape for next year.

Get help from an accountant if needed

While the year-end bookkeeping and accounting process is beneficial for small business owners and entrepreneurs, it can be challenging to do it all on your own. If you feel like you would benefit from additional help, you can consider hiring an accountant. An accountant can help you gather your financial information and prepare your taxes. Hiring an accountant is an excellent way to get help with your financial records, particularly if you’re new to business ownership and accounting. An accountant can help you save time and stress and make sure that your records are accurate. They can also help you identify areas of improvement and find ways to run your business more efficiently. Overall, hiring an accountant can be a great way to get additional help during the year-end bookkeeping and accounting process and make sure your financial records are in tip-top shape. At Peak Reliance, you can rely on qualified and experienced accountants and bookkeepers to keep your finances in good standing with the IRS. Check out our pricing plans or call us at +1 (718) 218-5558 for more information. You can also email us at [email protected]

Conclusion

There is no better time than the end of the year to take a step back and reflect on your business. You can use this time to make improvements, organize your financial data, and file your taxes. The year-end bookkeeping and accounting process is an excellent time for small business owners to get ahead and stay on top of their accounting so that they can focus on running their businesses.

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When to File Your Personal and Business Taxes Separately: A Guide for Small Business Owners

When to File Your Personal and Business Taxes Separately_ A Guide for Small Business Owners

When to File Your Personal and Business Taxes Separately: A Guide for Small Business Owners

December 3, 2022

When to File Your Personal and Business Taxes Separately_ A Guide for Small Business Owners

peakreliance

Accounting, Bookkeeping, Taxes

As a small business owner, there are many decisions to make and one of the most important is when to file your personal and business taxes separately. It’s important to take the time to understand the difference between filing taxes as an individual and filing taxes as a business. Doing your taxes correctly can help you save money, protect your assets, and make the most of the deductions and credits available to you. This guide will provide you with an overview of the pros and cons of filing your personal and business taxes separately, when it is beneficial to do so, and how to go about filing them. With this information, you can make the best choice for your business and ensure you are paying the right amount of taxes.

Overview of filing personal and business taxes separately

Filing taxes is an annual process designed to collect revenue for the government and make sure that everyone pays their fair share. In order to do this, the government uses a system of withholdings and deductions to ensure that their taxes are paid, taking into account income levels, filing statuses, and dependents. The system is designed to be straightforward and easy to understand: everyone pays the same amount of tax on the same types of income in the same way, allowing for a fair and even playing field. Small business owners fall into a slightly different category, however, and their taxes are handled slightly differently. Inside a business, there are two different types of income: the income earned by the business (profit), and the income earned by the individual owners (salary). Taxes are paid on both types of income, but they are calculated and handled in different ways. Filing taxes as a business collects all the business income and calculates the amount of tax that needs to be paid on this income. This is then deducted from the amount of money available to pay the owners. Filing taxes as an individual collects all the income that the owners earn, whether it is business income or personal income. The amount of tax due on this income is then calculated and paid on this amount. The business profit is paid on a different schedule, although some businesses are required to pay quarterly to avoid incurring penalties.

Pros and cons of filing taxes separately

There are both advantages and disadvantages to filing taxes separately for your business and yourself. Filing taxes separately for your business and yourself can help protect your personal assets from your business liabilities. This can be particularly useful for small business owners who are self-employed, such as contractors or freelancers, who don’t have the same level of insurance or protection as employees. Small business owners who file taxes as a business and a personal return can also receive a larger refund since they can claim more deductions from their business income. Filing taxes as a business means that all of your business expenses are tax-deductible, including things like health insurance, advertising and marketing costs, training fees, office equipment, and travel expenses. Personal expenses, such as groceries, clothing, and home utilities, are not.

When it is beneficial to file taxes separately

There are some scenarios when it is beneficial to file your taxes as a business and your personal taxes separately. One of the most common situations in which you might want to file your taxes separately is if you have significant self-employment income, such as from contracting, freelancing, or running a side hustle. This can help protect your personal assets from your business liabilities since business deductions will come off your personal income. You also want to file your taxes separately if you are taking a home office deduction. Since this deduction is based on your personal income, you will only be able to claim it if you file a personal return. If you are claiming a significant amount of deductions, such as for childcare or medical expenses, it can be beneficial to file a separate return for business if you will be receiving a larger refund.

How to file taxes separately

There are a few ways to file taxes separately for your business and yourself, but the most common way is to use a Schedule C form. The Schedule C form is used to calculate the amount of profit your business made during the year and determine what percentage of that amount is due in income tax. If you have significant business expenses, you can also file a Schedule C-EZ form. This is a simplified version of the Schedule C form and is appropriate for businesses with very little expenses.

Deductible business expenses

Business owners can deduct a variety of expenses when calculating their taxes, such as advertising and marketing, office equipment, travel and vehicle expenses, and training and professional development fees. There are also certain personal expenses that can be deducted from business taxes if they are used for business purposes. These include utilities, health insurance premiums, home office expenses, and mileage to and from work.

Determining your filing status

Your filing status determines the amount of tax you owe, as well as whether or not you are eligible for certain tax credits. When you file taxes as a business, you are able to choose your filing status based on your individual filing status. When filing as an individual, you are able to choose between filing as single, married filing jointly, married filing separately, head of household, or qualifying widow(er) with a dependent child.

Calculating your tax liability

The amount of tax you owe depends on a number of factors, including your taxable income and your filing status. When you file taxes as a business, you use your profit as taxable income and your allowable business expenses as deductions. Depending on your filing status and the deductions you are claiming, you will pay either a percentage of your business profit or a certain amount of money.

Claiming tax credits

Tax credits are cash payouts that the government gives back to taxpayers who have paid the appropriate amount of taxes. These credits are typically based on your income level, filing status, and number of dependents. When you file taxes as a business, you can collect some of these credits on behalf of your employees, such as the Child Tax Credit, the Child and Dependent Care Credit, or the Earned Income Credit.

Filing your taxes

The best way to ensure that you are paying the appropriate amount of taxes is to file your personal and business taxes as early as possible. The IRS recommends that taxpayers file their taxes no later than April 15, but many taxpayers are eligible to file an extension. This allows you an additional six months to file your taxes. If you are self-employed and filing your taxes as a business, you can file your taxes at any point during the year, but it is recommended that you file them as early as possible to ensure that you have all the necessary documentation.

Tax planning for small business owners

As a small business owner, you want to make sure that you are paying the appropriate amount of taxes, but you also want to make sure that you are maximizing your deductions where possible. One of the most important things that all small business owners can do is to keep good records. You will want to keep a record of all your business expenses, including mileage to and from work, office supplies, and any travel-related expenses. Keep in mind that you are only allowed to deduct the amount that is above the standard deduction. There are also certain industries that have special deduction rules and limits, so it’s important that you do your research.

Conclusion

Taxes can be complicated, especially for small business owners who have to file both their business taxes and their personal taxes separately. Having clear goals and expectations, knowing what deductions are available, and keeping good records will go a long way in helping you file your taxes successfully. Calling in an accountant for help is the best shot for you. Peak Reliance is a reliable team of professionally seasoned accountants and tax experts that can help you to file both your business and personal taxes separately. Check out our pricing plans or call us at +1 (718) 218-5558 for more information. You can also email us at [email protected]

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Bookkeeping, Business Taxes, Personal Taxes, Small Business Owners

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