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Having Problems with Employees not Returning back to Work?

Posted on June 30, 2020 at 7:45 PM Comments comments (1)











We congratulate you for making it through the Pandemic and getting back with your Business Operations. We are excited about the endless Possibilities and Opportunities, that the future holds for us. We look forward to working with you in making this Possible.  

Governor Larry Hogan recently announced the next round of safe and phased re openings in conjunction with stage two of the " Maryland Strong: Road map to Recovery" Plan. We are also aware that, the Federal Government will forgive part of your PPP Loan, as long as  60% of the Amount goes towards Paying your Employees. 

In light of these re openings and Loan Forgiveness Rules, the Maryland Department of Labor has notified all unemployment claimants who are on temporary layoff or are furloughed due to COVID-19 that they are required to return to work if called back by their employer. If a claimant refuses an offer of work, it may result in the delay or denial of the claimant’s benefits. 

Labor’s Division of Unemployment Insurance requires employers to report the following information within 15 days of when they offer work and it is refused by the employee: 
  • Employee’s full name and social security number
  • The date the employee was offered work 
  • The date the employee refused the offer of work.

If your Employees refuse to get back to work, there is a New Employer Tool for Updating Return to Work Dates and Reporting Job Refusals Online, which is included below.

Employers who have a valid Maryland account number and FEIN may easily report job refusals and update return to work dates by utilizing the Division’s new online application available at https://secure-2.dllr.state.md.us/net207/welcome.aspx.  The application will accept an updated return to work date up to 30 days in the past and up to 12 months in the future.

Employers without a valid Maryland account number, such as federal employers and those who are out-of-state, may report job refusals and update return to work dates by emailing [email protected].

However, please note there are circumstances where a claimant has “good cause” to refuse an offer of work, including:
  • Being sick or still isolated as the result of COVID-19
  • An unreasonable risk of exposure at place of employment
  • Caring for a family member who is sick or isolated as the result of COVID-19
  • Caring for a child who is unable to attend school or a childcare facility
  • The work is not “suitable.” In the context of an individual returning to work with the same employer in which the individual had been laid off or furloughed as a direct result of COVID-19, suitable employment means employment that the claimant is qualified for based on their customary occupation, experience, education level, and/or training. 

Upon receipt of this information from the employer, Labor will schedule a telephone fact-finding appointment with the claimant where the claimant will be able to address the failure to return-to-work/job refusal issue. The employer will also be contacted to provide the circumstances of the job offer. After the Division has collected the available facts surrounding the job offer, a determination will be made.

We are aware, that this may be a tedious and additional workload for you; As your Trusted Bookkeeping, Accounting and Payroll Provider, we are excited to let you know, that we can assist you with this Task, as well as any other Services, you may require to allow you settle down and work on your Business.

Call Us on any of the Numbers Below and Let us know, how we can assist you:
C - 2020-422-4586
O - 301- 485-8109
 

To your Business Success.
Rosemary Anyanwu, CFE. 
Certified QuickBooks Pro Advisor
Professional Bookkeeper & Accountant.

Work Anniversary Celebration.

Posted on May 15, 2020 at 3:44 AM Comments comments (1)
                                  
  
   Congratulations to Rosyan Bookkeeping Services
  Today marks 8 Years of Our Company.
   Birthed from a Labor & Delivery Room
   Became a Reality at the Birth of a Third Child
   Became liberated from the High Costs of Child Care Expenses.
   Became a Business Support to many Businesses.
   Became an Employer of Labor
   Became a QuickBooks Training Center
   Became a Bedrock to Many Homes and Families.
   Became a Leading Example to Youths and College Interns.
   Became a Support to Non-Profits.
   Became a Successful Business.
   Became Hope to our Clients.
   Breaking through the Pandemic
   And Coming out Stronger......................
  To Many More Years of Business Success.
  Congratulations. 

  We are grateful to all our Clients, Colleagues and Friends. Thank you for all your Support.

 Thank you for standing with us through the Years. We know, these are unprecedented times and there are a lot of challenges during these Period, but we want you to know, that we will get through this together and come out stronger.

 Don't hesitate to call, if you need a Supportive Ear. We are a Call and a Click away. Together, we will celebrate and get through this. 

 We love and appreciate you. 
                           

All you Need to Know about the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).

Posted on April 6, 2020 at 11:58 PM Comments comments (1)

All you Need to Know about the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan  (EIDL).

Paycheck Protection Program , Economic Injury Disaster Loan Program, SBA Loan




The Trump administration announced a $349 Billion Relief Package for small businesses that are being impacted by the effects of the coronavirus. Many are having to close their doors to prevent the spread of the virus. This situation, in turn, has led to companies having to reduce the hours of workers or even let them go altogether. 

The Relief Package Program is a Part of the Coronavirus Aid Relief and Economic Security (CARES) offered in Government - backed Forgivable Loans to help Small Businesses continue paying payroll costs and certain operating expenses.

If you're a Business Owner, these are Two (2) Main Options, that are available for Small Businesses and Non- Profits to obtain financial support during the coronavirus outbreak. They are:

  •         CARES Paycheck Protection Program (PPP) 
                                 And 

  •       Economic Injury Disaster Loan Program (EIDL)   

 
  Paycheck Protection Program (PPP) Loan:

  The Paycheck Protection Program (PPP) Loan is dedicated to guarantee Businesses, the loans they need to cover 8 Weeks of Payroll Expenses, along with some Utility and Rent Costs, as well as Payments of Interest on any Mortgage Obligation. Businesses will have to maintain Payroll fully for the Next 3 Months. It is important to note that the Loans can be fully forgiven, if the Businesses keep employees on Payroll or re-hire them by June 30th. 

         Important Facts about PPP:

  • To Apply for this Loan, Businesses can request 2.5 times their Average Monthly Payroll Costs. The Average Costs is based on the Total Payroll Costs for the Year 2019. 

  •  Organizations can apply for the Paycheck Protection Program (PPP) by calling their Banks and Other Lenders directly after completing the Form/Link below on the SBA Website:

  •  The Paycheck Protection Program (PPP) Loan is forgivable, depending on whether Businesses lay off workers and how they use the Money. 

  •  Repayment of Loans are deferred for 6 Months, with an Interest Rate of 0.50 % Fixed Rate and the Maximum Repayment Term is 2 Years.     

    
    Economic Injury Disaster Loan Program ( EIDL):

   This Loan is to provide Economic Relief for Businesses experiencing a Temporary Revenue Loss due to COVID-19. This Loan will guarantee a Bushiness/Non-Profit Organization, a Grant of $10,000  which is considered as " Advance", that you don't have to pay back. It funds low- interest Loans, that your Business can use to cover operating expenses, which you will need to repay back. 

        Important Facts about EIDL:

  • The Loan Request Amount will be based on the Amount of             " economic injury" that you have sustained, because of the COVID-19 Pandemic. 

  • The EIDL Loan can be used for a Broader Array of Costs, including Rent and Mortgage Payments, Salaries, Workers' Paid Leave and the Business' Operational Needs.

  • Organizations can apply for the Economic Injury Disaster Loan Program and Advance(EIDL) directly through the SBA Website Link below: 

  • Once you submit your Application for the Loan, you can indicate that you are interested in the emergency Grant at the same time. Businesses who request for this Grant Advance, when approved will not need to pay it back, but the rest of the Disaster Assistance Loan will need to have to be repaid.

  • Repayment of Loans are deferred for 6 Months, with an Interest Rate of 3.75% Rate for Small Businesses and 2.75% Rate for Non-Profits. The Maximum Repayment Term is 30 Years.        

        Additional Information: 

  • No Collaterals or Personal Guarantees is Needed for the Application for each of these Loans. However, if the Proceeds are used for fraudulent purposes, the United States Government will pursue criminal charges against the Business/Organization Owner. 

  • One can apply for Both Loans, if you need to, but you cannot use both Sources of Funds for the Same Purposes. 

  • The $10,000 grant is a Loan Advance and does not need to be paid back, BUT If you also apply for the Paycheck Protection Loan Program, the $10,000 will be subtracted from the Loan Forgiven Amount, under the Program.

  • If you apply for both Loans, it is advisable to let your PPP Lender/Banker, know that you have applied for the EIDL Loan. 

  • To get the Average Monthly Payroll Costs for the PPP Loan, it is advisable to use the Average of the last 12 Months' Payroll Costs. For New Businesses/Organizations, use the January - February 2020 Payroll Costs. 

  • You need to provide the Lenders, documentation that verifies the Number of Full Time Equivalent Employees on your Payroll Costs, Covered Mortgage Interest Payments, Rent Payments and Covered Utilities for the 8 Weeks Period, once the loan is Granted. 

  • The Loan Forgiveness will be based on the Sum of the Documented Payroll Costs, Covered Mortgage Interest Payments, Covered Rent Payments and Covered Utilities Documentation Provided. 

  • Due to the Likely High Subscription, it is anticipated that not more than 25% of the Forgiven Amount may be used for Non-Payroll Costs.

  • The Loan Eligibility Amount will be calculated, using the Financial Documents, submitted during the Loan Eligibility Determination Process. You will need to affirm that the Financial and Payroll Documents submitted are True, Accurate and Correct. 
 
     We are aware that these Applications require submitting your Financial Statements and Payroll Documentation to speed up your Loan Determination Process. We are excited to announce that, we are available to help you with furnishing these Documents and making them available to make this Possible.

     Feel Free to Reach out to us and let us know, how we can assist you. 

ALL YOU NEED TO KNOW ABOUT THE STIMULUS CHECKS.

Posted on April 3, 2020 at 4:04 PM Comments comments (3)


                   

stimuluschecks

   We are aware that these are unprecedented Times and there are a lot of challenges during these Period. We are encouraging you to rise above this Situation and remain confident, that you will come out Stronger, Bigger and Better off. 
 
   President Trump just signed off a $2 Trillion Relief Bill, which will come in form of Stimulus Checks to offer Assistance to Millions of American Household, affected by the Corona Virus Pandemic. We are aware that most of us have Questions  and we want to enlighten you more about, what in this for us.

   The Following are the Basic Things to know about the Stimulus Checks:

  •  Your Eligibility for the Stimulus Check is based on your 2019 Tax Returns as well as your Adjusted Gross Income. If you are yet to file your 2019 Taxes, the IRS will use the 2018 Taxes to determine your Eligibility. The IRS will only use your 2018 Tax Returns, if you have not filed your 2019 Tax Returns. 


  • You must have a Valid Social Security Number to be eligible for this Check. People with  ITIN Numbers and Tax ID Numbers will not be issued Checks.     


  • The Check Values are based on 3 Plans Income Qualification: 

  1. SINGLE TAX FILERS - The Adjusted Gross Income Qualification is $75,000 or Less. This Category will get a $1,200 Stimulus Check.     
  2. HEAD OF HOUSEHOLD FILERS - The Adjusted Gross Income Qualification is $112,500 or Less. This Category will get a $1,200 Stimulus Check.
  3. MARRIED FILING JOINTLY - The Adjusted Gross Income Qualification is $150,000 or Less. This Category will get a $2,400 Stimulus Check.        

       It is important to note that if the Income Exceeds the threshold, the Amount will be reduced on a Sliding Scale. 


  • For Each Dependent/Child, that is Under the Age of 17 Years and Below, you will get an Additional $500 Check, for each Child. Please Note, that this is as long, as the Child/Dependent was stated in the Tax Returns, at the time of Filing. 


  • If a Parent claims the Dependent/Child as a Dependent and this Child/Dependent files their own Taxes, the Parent will not get the Additional $500 Stimulus Check.       



  • The IRS will send the Payment to the Bank Account Information, that you have on File. 



  • If you did not indicate a Bank Account  nor used a Direct Deposit Method for your Tax Refunds, the IRS will mail the Check to the Address on File. 



  • In the Event, that you have moved from the Address on File, you need to File a Form 8822 with the IRS. This is a Change of Address Form to update your Address with the IRS.



  • The IRS will not withhold your Stimulus Check, if you are owing Taxes, the only clause is, if you are backed up on your Child Support Payment. You may have to call the Agency, in charge to make Payments and settlement, so that you are assured of getting your Full Stimulus Check Payment. 

  • The Earlier you file your Taxes, the Earlier you are assured of getting your Stimulus Check.      



        We are available to help you with all the Questions, that you may have , regarding the Stimulus Check as well as any other Question on the Stimulus Package. We are also available to assist you virtually. Call us on 202-422-4586 to set up an Appointment.

      It is always our Pleasure to Help you. 
  

W-2 and Form 1099 Form Tax Report Deadline for 2018.

Posted on December 18, 2017 at 7:15 PM Comments comments (5)


W-2 Form; 1099 Form Filing.

As the Year is coming to an end and Tax Season is drawing closer, it is important to remember The Protecting Americans from Tax Hikes (PATH) Act of 2015 that was passed by Congress in 2015, which became effective last year. We had published a Detailed Article - https://www.linkedin.com/pulse/new-w-2-deadline-2017-business-owners-employers-take-note/

With this New Act, Employers and Small Businesses have January 31 Filing Deadline to submit Forms W-2 and W-3 to the Social Security Administration (Whether you file using Paper Forms or electronically). This New Date also applies to certain Forms 1099-MISC reporting Non-Employee Compensation such as Payments to Independent Contractors.

As a Result of this, the filing deadline for 2017 W-2s and 1099 forms (including Form 1099-MISC) is January 31, 2018. The deadline for providing W-2 forms to employees and 1099-MISC forms to Independent Contractors for 2017 has not changed. This deadline is still January 31, 2018. 

Note to Employers: It is important that Employers become adequately prepared to complete the Year-End Tasks. This means:

  • Ensuring that All Independent Contractors fill out a Correct and Updated Form W-9.
  • Verifying Accuracy of Employee Information.
  • Reporting/Submitting Any Year-End Adjustments as soon as possible.
  • Reviewing Year-End Totals for any Discrepancies.

Please remember, that Extension of Time to file these Forms is no longer automatic. You can only request for One 30- Day Extension and this extension is NOT AUTOMATIC. You will have to submit a complete application on Form 8809, Application for Extension of Time to File Information Returns. This Form should be completed as soon as you notice that as Extension is necessary, but no later than JANUARY 31.

This Extension does not affect extensions of Time to furnish Forms W-2 and Forms 1099 to your Employees and Independent Contractors.
There are penalties for Failure to file these Returns or Furnish Correct Statements and these Penalties are not palatable. 
 
The Penalty amounts shown below apply for filings due after December 31, 2017:

  •  $50/Return – If you file within 30 Days of the Due Date.
  •  $100/Return – If you file more than 30 days after the Due Date but by  August 1.
  •  $260/Return – If you file after August 1, do not file corrections or do not file Required Forms.

 
The IRS urges Tax Payers to still plan to file their Returns as they normally would do, but prepare to exercise some patience, as we have noticed that these changes have brought some delays in getting Tax Refunds. The Refund Delay is an added way to help the IRS combat Tax Fraud by beefing up its effort to authenticate Tax Payer Filings.

 At Rosyan Bookkeeping Services, We are committed to helping you with your W-2s, W-3s and 1099 Filings, as well as furnishing you with helpful information regarding your Tax Filings. Let us know how we can help you.

 The IRS issued technical guidance detailing this information in https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

IRS Increases 401K Contribution Limits by $500 from January 1st 2018.

Posted on November 16, 2017 at 2:40 PM Comments comments (2)
  IRS Increases 401K Contribution limits by $500 from January 1st 2018   What this means for you. 
   The IRS had announced sometime in October, that effective from January 1 2018, the contribution limit for Employees who participate in 401(k), 403(b), most 457 plans and the Federal Government’s Thrift Savings Plan will be increased from $18,000 to $18,500.

  This is surely a Big Deal. As we all know, this extra $500 can help us more than we may think and it could also mean up to $70,000 more in your retirement account, assuming you decide a retirement age of 67 for yourself and at a 6 percent annual rate of return.  

 This is also important to know, as we have only few weeks to the end of the Year and most of us have less than 3 Payroll Cycles to the end of 2017. We need to ensure that we are working towards reaching the limit of $18,000 for this Year and if you are over 50, try to ensure that your Payroll Company implements your catch-up contribution limit of $6,000. It’s been discovered that most time, they don’t implement it, unless you inform them.

  If you have not been contributing the maximum amount to your 401(k), this IRS Announcement is a useful reminder to push your contribution rate higher.  Even if you’re not saving that much, increasing your savings rate by a percentage point or two every year, and anytime you get a pay raise will make a Big Difference to you in Retirement.

  In addition to this announcement, the income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Accounts (IRAs), to contribute to Roth IRAs and to claim the saver’s credit is also increased for 2018.

 Taxpayers can deduct contributions to a traditional IRA, if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.

           Here are the phase-out ranges for 2018:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $63,000 to $73,000, up from $62,000 to $72,000.
  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $101,000 to $121,000, up from $99,000 to $119,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $189,000 and $199,000, up from $186,000 and $196,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
 
           Highlights of Limitations that Remain Unchanged for 2018:

  • The limit on annual contributions to an IRA remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost- of – living adjustment and remains $1,000.
  •  The catch-up contribution limit for employees aged 50 and over who participate in 401K, 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

 

Please Note that If you don’t have a 401(k), there are other ways to put your money to work. Consider alternate retirement savings accounts, such as Roth IRA , Traditional IRA and/or Health Savings Account.
 
The IRS issued technical guidance detailing these items in Notice 2017-64
   

Let's talk about Payroll Expense.

Posted on August 11, 2015 at 1:33 AM Comments comments (14)
Today, we will be taking a look at an essential expense item in a Business. When you have a Business, you will surely have Payroll Expense. Even if you work alone, after all the expenses are paid, you are the payroll expense. At the beginning of every business, a Business owner does mostly all the work in the Business, but as the Business grows, it becomes impossible to juggle it all together.

Payroll Expense is a bunch of complex array of talent, thinking and behavior. Every Business gets its life from People with ideas, dreams, passions, skills, courage, imagination and other purely human qualities. All these inevitably make Payroll an expense Line item that cannot be neglected. Let's take a look at some No- Compromise Facts about Payroll Expenses, and I promise, that these will be mind blowing for you as you manage your Business.
  • Payroll Cost is a Fixed Expense: It is important to note that the Greatest Portion of your Payroll Cost is a "Fixed” Expense. "Fixed" here means a constant expense of the Business, that does not change based on Sales, Number of Employees or Other Variables. When Employees are added to the fixed schedule as your Business increases, they are your "Variable Cost Employees". This takes us to the next fact about payroll expenses.

  • Payroll Expenses can be controlled: Payroll Expense is usually the largest expense in any Business, and if it's not controlled, it can wreak havoc on your Cash flow and profits. Whereas, if managed properly, a Business Owner will have no regrets incurring Payroll expenses, since he/she cannot do everything and be everywhere in the Business. As a Business Owner, your job is to prepare yourself and your Business for growth, while you leave the operations of your Business to people, that know how to manage it best.The general benchmark for service payroll is 30- 35% of your Gross Revenue, And Administrative /Guest Services is about +/- 10%. Having this knowledge should enable us to have an idea of our Payroll cost before it is incurred. It is also great to know that Payroll Expenses can be controlled through sound scheduling and improving employee productivity.

  • It is about Time: The Payroll expense line item on your Profit & Loss Statement represents the purchase of your employees' time. The purchase of time gives you access and use of your employee's talent, skill, creativity and other liabilities. Please note that it is the Business Owner's responsibility to utilize the time effectively and efficiently. When the Business Owner buys too much time, he/she ends up putting stress on Cash flow and shrink profit. Whereas when too little time is bought, you compromise the ability to meet demand and deliver quality results. Time is a precious commodity that requires constant attention.

  • It is About Productivity: Every Business's productivity rate is a primary critical number. It is a ratio of time available to time used. As a Business Owner, you cannot control Payroll cost, until you understand that you are not ' scheduling' people, but rather “purchasing" a potential to work. You increase productivity through Training and the use of labor saving equipment and products. Perhaps when we know this, we will adjust our need to schedule only the number of staff, that are actually needed for a job rather than getting more than the necessary staff because of fear of being short staffed.

  • Payroll Expense is about Investment: Payroll is an investment in your employees. In fact, like any worthwhile investment, Employees need continuing education to develop and refine their skills. They need to know how; they are doing through scheduled performance reviews and one-on- one session.  Most of all, employees need to know that they are appreciated for their contribution to the Business. A Business that invests and cares for its employees is a Business that maximizes its payroll investment because you can only get the best out of an employee that is well taken care of and highly appreciated.

  •  It is less about the Money: Money does not buy employee loyalty, passion and commitment to your Business. People work for opportunities and fair pay. Your Employees will deliver their best performance and productivity, when there is meaning and purpose in their work. As a matter of fact, Money and Profit is an outcome derived from what the Business stands for in terms of core values, fairness and integrity.

     

 Having explained these facts, we will look at the three (3) Groups of Payroll Costs. They are :

A) Compensation : These are the amounts paid directly to the Employee or a Third(3rd) Party for Services provided, work done and legal compliance( Child Support, Court Ordered Payments or Automatic Payroll Deductions for Loan Payments. Examples are Salaries and Wages.

B) Taxes: These are amounts paid directly to the respective governmental authorities for both the employee's withholdings and the required employer matching Unemployment Taxes. Examples are Social Security, Medicare and Federal Unemployment and state Unemployment.

C) Benefits: These are Payments that are made to the beneficiary and the benefits providers based upon the agreed terms between the 3rd Parties (Employee, Employer and the Benefit Provider) .Examples are Health Insurance, Vacation/Sick Time with Pay, Dental/ Vision/ Cancer, Retirement and Life Insurance.

In conclusion, Payroll is truly more than an expense to be managed and controlled..... It is something extremely personal because it is about Peoples' lives. Given the proper attention, Planning and financial discipline, A Business’s Payroll expense should be a source of pride to any Business Owner.  If not, you are missing what Business is all about.
  • Have you been overwhelmed with doing it all in your Business and know that it is time to recruit employees for your Business? 
  • Are you worried about how to handle your Payroll Expenses?
  • Do you need help with setting up Payroll Expenses for your Employees, as well as remitting the payroll taxes to the appropriate authorities?
  • Are you overwhelmed with handling your Payroll expenses and need help with paying your employees at the right time?
  • Do you need help with filing the appropriate payroll reports with the Federal and State Agencies?

As a Business owner, your job is to prepare yourself and your Business for Growth, why don't you let us manage your Payroll Expenses and take care of your Payroll taxes? You will be glad you did. Give us a call on 202-422-4586 and let's discuss how we can help you.

Tips for Managing Your Business Cash Flow.

Posted on August 5, 2014 at 2:49 AM Comments comments (26)

 It's already the eighth month of the Year, We are gradually getting to the end of the year, and soon it will be time for Year End Reports. In our last Newsletter, We discussed the concept of Cash Flow and how it affects our Business Operations; this month, we will be looking at tips to manage our Business Cash Flow.

  Being in Business for yourself is like being an Air traffic controller, especially in the area of cash flow management ; You can imagine trying to control 100 Airplanes landing simultaneously on two runways; this can be an upheaval task, but we regularly see clients line up their monthly bills, their projected income, business projects and business expenses and try to combine all these activities, at the same time, trying to ensure a steady cash flow into the business; you can imagine, the projected outcome, if all these activities are not properly coordinated.

  Cash Flow is the heartbeat of every Business, and if a Business does not have the cash on hand to pay their vendors, they will definitely run into problems. The main Cash Flow Problem, that Business Owners face is as a result of Lack of Creative Cash Management. Below are some Tips to overcome the Ups and Downs of Cash Flow Problems in your Businesses:

1) Always Schedule All Payments: Most Business Owners line up their monthly bills, compile them, sit down and issue all the checks and set up Bill Payments at once; but the trick is to have a " Holding Pattern". It is advisable to schedule each payment, in order to get to your vendors in a timely landing, without affecting other Cash Flow activities. 
  Every Business has Three (3) tiers of Checks Disbursements Groupings:        
a) Must Pay Group- These are payments that can hurt you, either in cost or ability to operate your business, if they are not paid. These include items like Taxes, Rents, Payroll and Service Charges.
b) Important to Pay Group - These are payments, that have a reasonable grace period, and if not paid, a financial penalty can be incurred, as a result of Nonpayment. These include Utility Bills , Credit Card Payments and Insurance Payments .
c) Flexible Payment Plan Group - Suppliers, Vendors and Wholesalers, that supply most Small Businesses are the best sources of flexible credit financing. Most of them will continue to work with you, if you arrange a regular payment plan with them.

  • Tip #1: Try to schedule Payment Dates, into the Three (3) tiers of Checks Disbursements groupings and issue check/Bill payments accordingly.

2)  Make Payments on your Revenue, not on uncollected Sales : I am sure, that none of us will want to land a plane, hoping that the runway is beneath us in the fog bank, as also Business owners, it is not advisable to make projected payments on uncollected revenue. You may wander, what happens to Credit Facilities, Guess What, Most Credit Facilities still have a timeline for payment.

  • Tip #2: Always prepare your Cash Flow Statement and financial reports, and review them periodically, to have a full knowledge of your Cash Flow.

3)  Do not use Payroll Taxes to float your Business Operations: Studies have shown that most Business Owners use the Tax liabilities, collected during payroll, to float their businesses, rather than remitting the payments to the appropriate Tax Authorities. They don't realize that they spend more in potential penalties, fees , interests, time and aggravation, if they engage in this act. Tax Liabilities grow, if they are not remitted at the appropriate timing.

  •  Tip #3: Try to discipline yourself to deposit the payroll tax money collected, into a Separate Bank Account, until you are ready to remit the payments.

4)  Establish Relationships with your Credit Provider: It is very important for every business owner to plan for a rainy day. Having a great relationship with a vendor, that gives you a credit facility, avoids cash flow storms, which might bring in a sense of desperation or lack of control. 

  • Tip #4: If you work with a quality company, that provides working capital or credit facility, stick with them and build a relationship, once they know your credit worthiness, they will be there to help you quickly, in times of need.

 5)  Invest in a Good Bookkeeping/ Accounting Service: It is important for Business Owners to have a grasp of their cash flow and understand the effect on their business growth. A Good Bookkeeping service is invaluable to your business, particularly in preparing your monthly financial reports and cash flow statements, which will help you, see how your Business is doing as well as maintaining your Business Cash flow. 

  •  Tip #5: Rather than worry about how to prepare your company financials and your cash Flow Statements, as well as trying to figure out, the amount of Payroll taxes to pay; let the professionals handle it.

  Understanding and Managing Cash flow has been a challenge for many Business owners, but with the application of these tips, it is possible to grow your Business to a greater level , and also have enough funds for other activities, that will bring more revenue into your Business. 
 
  Please feel free to contact us on 202-422-4586, if you will need further help on how to manage your Business Cash flow and financial Reports. We will love to help you. Remember: The best time to take control of your Cash Flow is RIGHT NOW.

Understanding Your Cashflow

Posted on July 2, 2014 at 1:55 AM Comments comments (111)


 Welcome to the month of July. We are done with the first half of the year and started the countdown to the remaining half of the year.

Our Newsletter for this month is on an integral part of every business; an area that is generally misunderstood by most business owners, but interestingly plays an important role in every organization. Have you taken time to look at your Cash flow Statement? Can you tell where Funds are disbursed in your Business? Do you understand the effect of your Spendings? The art of struggling to understand and manage your cash flow can be a huge distraction to your business; in this series, we will be providing you with quick tips on the basic method of understanding your cash flow.

  Our Areas of Concentration will be on:

 - Definition of Cash Flow
 - Drivers of Cash Flow in a Business
 - Facts about Cash Flow
 - Quick Tips on Understanding your Cash flow and applying it to your Business.
 - Managing your Cash Flow effectively.

 What is Cash Flow?

 Cash Flowis the movement of money into or out of a business, project or financial product, and can be measured at any specified period of time.

  The Following are the drivers of Cash flow in a Business:

  • Accounts Receivables (These are money owed to a Business by its customer, as a result of services provided or goods sold).
  • Inventory.
  • Accounts Payables (These are Vendor Payments, owed to vendors, for goods bought/services received on credit).
  • Capital Expenditures(Purchase of Equipments)
  • Borrowings/Debt Servicing.

  It is worthy to note that your Cash Flow originates from 3 Basic Operations:

 a) Cash Flow from Operations

 b) Cash Flow from Investing

 c) Cash flow from Financing

  Most Business Owners have problems with Understanding their Cash Flow because of the following facts: 

 a) A Profit or Loss in a Business does not equal Cash Flow.

 b) An Increase in Cash in your Business is not always good.

 c) A Decrease in Cash is not always bad. 

  Many Business Owners have problems understanding and interpreting their Cash flow, because of the technicalities involved; but I want to challenge you today, to take the simple test below, write down your answers and put it into practice, and watch your business grow; I bet you will be so thankful for this enlightenment:

  •   Focus on the TOP 3 changes in your Cash for the Month.
  •   Decide whether each change is good or bad.
  •   Write one line description of each change and look at the effect, it has on your Business.
  •   Once you are able to prove the effect of the change in your Business, hold on to the result and use it as a base, in your Decision making.

    By doing this exercise periodically, you will have a better grasp of your cash flow, and see its effect on your Business growth.  I will like you to try this exercise and forward your feedbacks. In my next article, I will be giving you tips on how to effectively manage your Cash flow in your Business.

    Please feel free to contact us, if you will need further help in understanding your Cash flow and producing your Cash Flow Report. We will love to help you.

   Remember: The best time to take control of your Cash Flow is RIGHT NOW.

   

 



 
 


 

 

Why Use Quick Books Accounting Software?

Posted on May 8, 2013 at 2:30 AM Comments comments (21)
  
It is important for every business owner to have an effective accounting system in place, so that they can increase their efficiency and manage their finances effectively. When a client comes to us in need of Bookkeeping /Accounting Services, it is noticed that most of the time,many of the business owners do not have an accounting system in place and this puts their businesses and finance in a great mess.
 
An  accounting System is the basis of a good business and goes a long way, in showing how the business can handle its profits,manage its expenses, handle its payroll and invariably increase its net worth. We always advise our clients, to get QuickBooks, to handle their accounting/bookkeeping records.
 
QuickBooks is a set of accounting software solution that is designed to manage payroll, inventory, sales,purchases, invoices, receipts and other needs of a small business. It is usually tailored to meet the needs of every different industries and business types. We always encourage our Clients to use Quick Books and if they cannot afford it; we can set up their company QuickBooks file on our system, and prepare their reports and send in electronic files to them, to view, their company financial position.
 
We will go ahead to list a few reasons,why you should use QuickBooks for your Business Accounting Software:
 
  • QuickBooks can be customized to work, whichever way, you desire. It is specifically designed to be flexible and adaptable to a wide range of businesses. In addition,Quick Books have customized accounting packages for all industry typesincluding the ones for Contractors, Retailers, Health Care Professionals, Non-Profit Organizations, Real Estate Industries and several others.
 
               We also advise our clients on the suitable type of QuickBooks to use for their business and invariably help them in setting up the Software,to suit their Business type.
 
  •   QuickBooks has been proven to be stable, reliable and consistent with using the best accounting practices, to produce financial statements, which most companies use to make business decisions that will move their companies forward. With Quick Books,you can make forecasts and budget projections, which are necessary tools if you want to move your business forward. You can contact us for more details regarding these business tools, and how to use it to work for your Business.
 
 
  •         You can grow your business with QuickBooks. QuickBooks will help you design a business plan to use while trying to secure a small business loan or line of credit, and also planning for the future. This software can create a projected Balance Sheet,Profit & Loss Statement and statement of cash flows in the formatrecommended by the U.S. Small Business Administration.
 
 
  •      The Use of QuickBooks can save you time on Bookkeeping and paperwork, because many of the simple Bookkeeping tasks are handled automatically in QuickBooks, thereby making it easier to run your business effortlessly. We have seen clients that tried doing their Bookkeeping on Microsoft Excel, and gone through so many headaches,to clear or balance an account item,after spending long hours without any solution; With QuickBooks, you do not have to exert as much effort and you are sure of getting immediate results and a reconciled account, which shows up immediately.
 
 
  •     You can create your Company Invoices with QuickBooks, as well as your receipts, and send them via email to your customers, rather than using a Microsoft template,that you always have to edit, which may lead to several errors and repetitions.With QuickBooks, once you create an invoice, it is synchronized with your accounting system.
 
  •       QuickBooks enables you to view your Accounts Payable(Vendors) and your Accounts Receivables (customers) without stress, and this will give you a clearer picture of how to handle your vendors and customers effectively.
 
  •        With QuickBooks, you can easily generate reports you need information on, so that you will always know where your business stands. As a business owner, you need to know whether you are making money or not, or whether your business is healthy or profitable. If you need to know further on how to use QuickBooks to perform this function, we are always available to train you, and show you the multiple ways, that you can generate over 100 reports on QuickBooks, which will invariably move your business forward.
 
 
  •       Every Business owner wants to get paid for their services and will also need a faster means of payments to improve the company cash flow; With QuickBooks Online Payments,you can e-mail an invoice or statement, through which your customer can easily pay you with a credit card or bank account transfer. This is really a great feature,because you do not have to wait for the check in the mail anymore.
 
  •      QuickBooks encourages paying your bills online, by setting up your current bank account on QuickBooks; you are ready to pay your bills without licking any envelopes or printing paper checks. You can even pay anyone from your credit card companies to your pizza service. In addition, the Online Banking feature lets you download your monthly statement from your participating bank directly into QuickBooks for easier reconciliation.
 
  •     Do you know that you can set up your liability accounts like Loans, Notes Payables,Credit Cards and Line of Credits on QuickBooks? Once this is done, you will be able to know your monthly balances, and see your principal and interest payments every month; doing this takes off so much stress than having to wait for the statements from your Bank ,or paying the extra charges, that will be required,in the event that you loose any of the statements.
 
  •        Payroll can be done via QuickBooks, this saves our client a lot of stress and money, because it will eliminate your dependence on payroll companies to prepare your payroll; and you get to see the number of hours, that your employees have worked in total for each pay period, in addition to the net amount that they are due,after tax liabilities. You are also in control of your Company Tax liabilities and payments.
 
 These are just a few of the reasons for using QuickBooks Accounting Software for your Bookkeeping services; we have found out that most business owners always underutilize a lot of the QuickBooks features, either because of ignorance or lack of training.
 
You can always contact us to train you on how to best utilize your QuickBooks Software.We offer various QuickBooks services at very affordable rates. Our  QuickBooks Services include:
 
-         QuickBooks Setup
 
-         QuickBooks Personalized & Group Training
 
-         QuickBooks Supervision/Review
 
-         QuickBooks Support
 
-         QuickBooks Tune Up
 
-         QuickBooks Cleanup
 
-         And many more
 
          It is always important to make the best use of your QuickBooks software in order to get the best financial reports for your business. Using QuickBooks Accounting Software is a smart and affordable way to get a handle on your books. Accurate records enhance educated decisions for your business and will save you money.
 
WHY DON’T YOU CALL US TODAY ON 202-422-4586 to schedule an appointment; so that we can show you the best way to use your QuickBooks Software, and if you do not have one, DON’T WORRY, We can always purchase one for you or set up your QuickBooks Company file on our system and send you regular reports, so that you can manage your business effectively and make great business decisions.
 
Please also feel free to fill out our contact form, so that we can get in touch with you to respond to your needs. We will love to help you.