My Blog
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Tax Season is Still On.
| Posted on February 19, 2018 at 11:55 PM |
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 Do you have all your
required Tax Filing Documents? * Form W2 * Form 1099 - MISC (If
you are a Contractor or Independent Employee) * Form 1099 - G (To
show Payment received from Government Agencies, Unemployment Benefits, Alimony,
Child Support). * Form 1095 - To show
that you are enrolled in a Qualified Health Plan, which will allow you to get
your Premium Tax Credit). * Form 1098 - To show
Payment Received from Interest (Interest Income). * Profit & Loss
Financial Statements (If you are a Business Entity or Corporation) * Property Taxes paid
on Principal Properties. *Charitable Contribution Statements.( To show
Tithes, Offerings and Donations given to Religious Organization) * All Receipts of
Purchases Made during the 2017 Year. Additional Forms, that
you may receive: a) 1099- INT - To Show
Payments received on Interest. b) 1099- DIV - To Show
Payments received on Dividends. c) 1099- R - To show
Pensions and Payouts from Individual Retirements Accounts. d) 1099-B - To show
Broker Transactions and Barter Exchanges. e) 1099-S - To show
Real Estate Transactions. Businesses may not
like sending out Forms 109, but they are required by law to send them out.
There are also penalties for failing to issue these Forms. No one wants trouble
from the IRS. Generally, Businesses
must issue these forms to any Payee (Other than a Corporation), that receives
$600 or more during the financial Year. This is the basic threshold. Do you need more
clarification on any of these Required Documents? Feel Free to reach out to us and
we will educate you more, help you reduce your Tax Liabilities and guarantee
your Maximum Tax Refund. |
Get Paid What You're Worth.
| Posted on May 2, 2017 at 11:59 PM |
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 Wow, The Busy Tax Season is over; we're back to Normal Business
Activities. I would like to share with you, how you can always be in Demand and
get paid what you're worth. I visited an Eyebrow Threading Specialist recently and was
amazed at how she attended to her Clients and the artistic way, she used the
popular Thread, that we're all used to shape her Clients' Eyebrows. This was so
amazing to me and it was funny, that as simple as it looked, she was making
"Big Bucks" from this Trade, with all the Clients waiting to have
their Eyebrow shaped and to think, that was all she did for a living was even
more thrilling. This led me to one Conclusion - "To Get paid what you're
worth, You have to Become a Master at One Thing". Seriously, Take the Best Skill that you have today - Whatever it
is - And Become a Master at it. Don't worry about how little or insignificant,
you think it is. Study It. Practice It. Perfect It. Perform It. There's No Excuse- Anyone can master One Thing, if they put
their mind to it; Our Brain has been programmed this way. When you do, you will
be surprised at how soon you'll earn a Reputation for that Skill. It may be as
Simple as the Art of Eyebrow Threading or being an expert in Numbers (Like Yours
Truly). Above All, When you master that One Skill, People will take you
seriously and you will become more valuable to your Business, Clients,
Employers, Customers and your Boss. And Guess What- When you become more
valuable, I guarantee you - YOU WILL NEVER HAVE A PROBLEM WITH COMMANDING YOUR
WORTH AGAIN. I challenge you today, to put into practice everything that I
have stated above and watch your Earning Power Grow. At Rosyan Bookkeeping & Accounting Services, We know Our
Worth and Our Clients Value us. We know our Specialization and we are Proud to
flaunt it. Give Us a Call Today and you'll be Glad you did. |
Have You Reconciled Your Bank Statements?
| Posted on November 3, 2015 at 9:43 AM |
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Have you reconciled
your Bank Statements lately? Just a Reminder, We have only a few days left to
the end of the Year. Very Soon, It will be Tax Season and you will need to
submit your Financial Statements for Tax Filing. Can you confidently say that
your Company Accounts are updated and reconciled? It is very important to reconcile your Bank and Credit Card Statements at the end of every MONTH. A Bank Reconciliation is the balancing of a Company's Cash Account Balance to its Bank Account Balance. It is important to ensure that the Cash Account and Bank Account Balances match. The Main Document used for Bank Reconciliation is the Bank Statement. There are great benefits in reconciling your Accounts and we will be looking at a few of them today. These Benefits include:
I have listed a few of what I discovered in my years of
engaging Bank Reconciliations for my Clients. For easy assimilation, I will
categorize them as Internal and External Observations: INTERNAL OBSERVATIONS: 1) Pilfering Employees/Employees that steal from the Company. 2) Cash Registers not closed out. 3) Bank Deposits not being timely deposited by the Employees. 4) Cash Advances and Loans taken by Employees are not properly accounted for. 5) Unauthorized Purchases made on the Company's Credit Card. 6) Forged Checks being endorsed and cashed at the Bank. 7) Managers taking Clients to a strip club on the company's Credit Card (Yes, This Happens). 8) Rampant Starbucks purchases on the Company Credit Card. 9) Wrong Recording and Classification of Loan Accounts, Line of Credits and credit Card Accounts. EXTERNAL OBSERVATIONS : 1) Customers reversing charges, without the knowledge of the Business Owner. 2) Automatic Payments increase by the Bank. 3) Utility Companies like Telephone/Internet Companies billing Clients twice in the same month. 4) Fraudulent Purchases on the Company Credit Card. 5) Match.Com Payments made on the company Credit Card. 6) Unauthorized Withdrawals by the Banks ( Inadvertently claiming the Business Owner authorized it). 7) Bill Payments issued via Bill Pay were not mailed out by the Bank to the vendor issued, hence the business Owner incurs late charges for Non Payment of Bills. 8) Over $3,500 in Annual Bank Fees for Overdrafts/NSF/Late Fees. We can see that most of these items are charge worthy and I have seen a lot of Business Owners experience One or more of these errors because they don't reconcile their Statements. We need to have internal and external procedures in place to get our accounts reconciled. If you have not been recording your transactions from the beginning of the year and have not reconciled them, the best time to start is NOW. Please do not feel that it is a waste of time to reconcile your accounts, you never know, you may have been losing a lot of cash under your nose. Try to take a look at your account today and begin to experience increased Cash flow. If you feel that you don't have time to get to your Bank Reconciliation, Feel Free to Give Us a Call on 202.422.4586. We are always available to help you. |
5 Strategies Of Turning your Profits into "Cash"
| Posted on December 8, 2014 at 2:29 PM |
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The Holidays are here and it's time to ensure that we have some cash tucked
somewhere for the Holiday Shopping, Gifts, Christmas Parties, as well as
Year-end Savings.
In our last Newsletter, we uncovered the myth of profits, and learnt that,
understanding how transactions occur in our business and its effect on our
financial statement is key to managing our profits. Please feel free to
refer to our last newsletter for the full details. This Month, We will be
looking at 5 strategies of turning our Profits
into "Cash": 1 ) Cash is King: Every company experiences an increase or decrease in
Cash availability at any given period; the basic key to turning your profit
into "Cash" is what you do, when you have made a Great Sale and
received Payments from a Business Windfall. This should be the period
to have a Savings or Cash reserve Account, whereby you can set aside a certain
percentage of this revenue and discipline yourself, not to meddle with the
account. This is called effective Cash Management, and it takes a lot of
discipline, but if taken seriously, you will achieve great results. 2) Plug your Cash Leaks: A lot of Business Owners are surprised about
the waste, inefficiency and unchecked spending of precious Cash that should
have remained in their Bank Account, if they have been managed
effectively. As a Business Owner, it's possible to have been a culprit of
any of these acts:
It's time to take a forensic trip down your Profit & Loss
Statement and try to justify every expense line item, I assure ,you there
will be a 5 % more profit ,just waiting to find its way to your bottom
line. 3) Take Ownership of your Business Account: A lot of Business owners
tend to mingle their personal expenses with their Business Account. Once you
indulge in this practice, your financial reports are contaminated and become
pretty worthless, especially when it comes to decision making. It's better
to take ownership of your Business Account and maintain it, as a separate
"entity" from your personal account. This will help you manage
your cash flow better, and hence you will able to pay yourself
appropriately. After all, this is the reward of being a savvy
business owner. 4) Avoid taking on too much Debt: Too much debt sucks the financial life
out of a company. In our last Newsletter, we learnt how Principal Loan payments
occur on the Balance Sheet and are funded by your profit; Imagine what happens
when your company is overburdened with debt, Chances are that you will use your
Cash flow to continually offset the debts, and this causes your company to be
cash starved.
The only way to eliminate debt is to put yourself and your company on
a "strict debt reduction diet". If
possible, Stop adding further debt to your company; otherwise have a
strategy on how to pay off the debt, if you MUST take on further debts. 5) Have a Budget: A Budget is a blue print of an
estimation of revenues and expenses for a given period in the future. A Budget
gives financial direction. A Budget keeps you on track and helps you
to manage your cash flow. Preparing a Budget makes you disciplined and faithful
to keeping your profits. This is the best time to prepare
a Budget for your Business towards the upcoming year.
As we approach the New Year, Why don't you try out these practices and
watch your Cash flow grow. You will be surprised at how a few dollars will
add up in your Bank Account.
Do you need help with creating your Budget for the upcoming year? Are you
experiencing problems with recognizing your expense line items and
don't understand how your Cash flow operates? Why don't you give us a
Call, We will be glad to help you out.
Happy Holidays. |
What do you expect your Profit to be this Year?
| Posted on October 7, 2014 at 1:17 AM |
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Profitability is a key driver of financial success in business. The goal of every Business owner should be to make profit and improve their business to make it better. If you were having a discussion, one year from today, and looking over your financials, Will you be happy with your financial progress? This question should propel you to take action, about what you expect your profit to be for the year. Profit is like a car,that must be driven; it does not drive itself; for you to get a projected profit, you have to be on top of your profit expectations. I have listed some questions, which should stimulate you to focus on an expected profit, as the year is coming to an end:
As you go through these questions, you're painting a picture of what your financial success should look like, and this will lead you to action, for an end result. Having a picture requires taking action to actualize your projected expectations. These steps below will help you achieve your financial profit picture, feel free to put them into practice and see the transformation, it brings to your business: 1) Have a Target Goal: You need to have a financial goal for your business at the beginning of every year. The Goal can be broken into monthly, quarterly and semi-annual financial targets. It is advisable and easier to have a monthly target. 2) Monitor your Progress: Once you set your financial goals, you will need to monitor your progress, against your target every month. You can only monitor your progress by examining your monthly financial reports (Profit & Loss/ Balance Sheet Reports). If you have not been preparing your report, this should be a good time to start. 3) Adjust: At the end of every month, you need to review your target goal against your actual results (financial reports), and decide if you need to make changes, in your business, to achieve your targets. The changes can be in form of reducing an expense category to putting a plan in place for faster accounts receivables process. This is the secret to creating your financial success for your business. I challenge you to put these into action and watch your business achieve your desired projected profit. Do you need help with interpreting your financial reports? Perhaps you are yet to prepare your financial reports for the year, and don't have an idea of your actual profit; Call us NOW for further consultation and Assistance. We will be glad to help you. |
Understanding Your Cashflow
| Posted on July 2, 2014 at 1:55 AM |
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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:
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:
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. |