Small business budgeting

Small business budgets come in many formats, types and degrees of complexity. In most cases though they serve three purposes. The first purpose of a budget is to establish performance targets over a specified period of time. Usually a budget plans for revenues and expenditures on a monthly, quarterly, annual and multi-year basis. Company managers and employees can then devise action plans to achieve the targets provided by the budget. The second purpose of a budget is to measure … [Read more...]

How to manage small business bookkeeping

Angus Reid Public Opinion recently conducted a survey of business owners generating up to $5 million in revenues and employing up to 100 people to understand what they like and dislike about running their companies. The worst-ranking task was bookkeeping with 85 percent indicating they dislike it and 46 percent stating it was their least favorite task. The problem is that bookkeeping can be tedious, time consuming and the business benefits aren’t as obvious as those from sales or marketing. When … [Read more...]

Tax insight: IRS issues new rules on expensing and capitalizing property

Since 2003 the IRS has been working to revamp how businesses should account for money spent on buying, making, improving and repairing tangible property. The final regulations were announced in 2014 with an important update made in 2015.  Why would such a seemingly arcane tax accounting topic take a decade to finalize? The changes affect over $17 trillion in tangible assets owned by U.S. businesses and may require accounting changes for virtually every company in the country. The new … [Read more...]

Use price anchoring to boost sales

prince anchoring

Nailing your pricing should be the focus of every small business owner. While big companies have entire departments dedicated to price optimization, we usually have to rely on our judgment and trial and error. Does this mean we are condemned to always price too high or too low? Absolutely not! There are many proven pricing strategies developed over decades of research that we can put to work immediately. Many are based on human psychology and have stood the test of time. One such strategy is … [Read more...]

Are you cooking the books without knowing it?

small business accounting

Sometimes your business just doesn’t perform as well as you need it to. Spending 15-hour days at trade shows, pulling all-nighters to revamp your market strategy and tweaking your website all weekend don’t always guarantee a profit or cash flow boost. If you happen to be applying for a loan or line of credit or are in the process of selling your business, a few bad months could mean the difference between loan approval and rejection. When faced with this kind of pressure, some small-business … [Read more...]