For those of you who have to file and pay sales tax in MO
You can now do so online!
It's much easier than paper filing, calculates your sales tax, updates city rates and codes
and keeps your filed returns on file. It truly is a nice feature.
Thank you Department of Revenue for making it easier to take our money. :)
https://dors.mo.gov/tax/busefile/login.jsp
Making it Count.
Wednesday, April 27, 2011
Tuesday, April 26, 2011
Strategies to improve cash flow
STRATEGIES TO IMPROVE CASH FLOW
Keep a close eye on your books
Too many business owners take a quick look at their books and pronounce their finances fit without truly understanding their cash flow situation. While an increase in sales or a solid bank balance may put you at ease, neither one necessarily translates into healthy cash flow. Take time each month to prepare and review financial reports — especially a cash flow statement that specifically details the funds moving in and out of your business. Many accounting software programs (such as QuickBooks or Peachtree) can create these reports for you. Speak with your accountant or financial advisor to learn more about what to look for in these reports.
Pay bills intelligently
One good way to conserve your cash is to make the most of vendor payment terms, which are essentially interest-free loans from your suppliers. Take the maximum amount of time allotted (often 30 or 60 days) to pay invoices — for example, if an invoice is due on the 15th of the month, don’t pay it on the 1st. Many businesses now use electronic bill payment solutions, which let them set the exact date a bill is paid and money is withdrawn from their accounts. Talk with your bank to find out if this option is available to you.
Take advantage of incentives
The only time you should pay a bill early is if you get a discount. Some suppliers may offer an incentive for paying their bills quickly, typically within a week or two. It may be worth taking them up on the offer. Think of it this way — a 2% discount on a 30-day invoice translates into a 24% annual return if the money was invested. If your vendors don’t offer this, ask for it — they may be willing to do so to speed up their own cash flow.
Organize your receivables schedule
Slow-paying customers are the root of many cash flow problems. Don’t let invoices lag. Put yourself on an invoice tracking schedule using your accounting software. Not only can these programs generate invoices, but they can automatically classify accounts receivable by age — e.g. less than 30 days old, between 30 and 60 days, between 60 and 90 days, etc. Review your accounts receivables aging reports frequently so you can take timely action on overdue invoices.
Control your inventory
Money tied up in inventory can dramatically impact cash flow. Retailers and manufacturers are especially vulnerable in this area. Retailers should regularly gauge their inventory turnover ratio (cost of goods sold divided by the average value of inventory) to make sure it is within industry norms. Old or outdated stock should be cleared out through end-of-season sales to turn stale assets into liquid ones. Manufacturers can use supply-chain management tactics to have just enough inventory on hand to keep product lines running and meet customer commitments without tying up critical cash.
Consider leasing
Over the long run leasing costs more than purchasing, but its cash flow benefits can still make it a prudent choice. Leasing computers, cars, and the like lets you avoid tying up cash or lines of credit that might better be used for running your day-to-day business. Lease payments are also considered a business expense, so the tax benefits are maintained even though the items are not purchased.
Check your prices
Make sure your prices keep pace with rising costs. Many small businesses hesitate to increase their rates because they’re afraid they’ll lose customers. Customers actually expect their suppliers to institute small, regular price hikes. Also, check your competition regularly — if they’re charging higher prices, maybe you should, too.
Always get the best deal
One of the biggest cash drains is spending money needlessly. Avoid this by comparison-shopping for products where service and other value-adds are not critical. Buy in bulk to get price breaks for goods you regularly use in your business. Get quotes from competing suppliers for capital equipment. Also, check deliveries against invoices to be sure you’re getting what you ordered and that you’re being charged the correct price.
Healthy cash flow is really about making every dollar count. Make the time and effort to manage your cash flow effectively, and you’ll be on the way to long-term profitability.
Keep a close eye on your books
Too many business owners take a quick look at their books and pronounce their finances fit without truly understanding their cash flow situation. While an increase in sales or a solid bank balance may put you at ease, neither one necessarily translates into healthy cash flow. Take time each month to prepare and review financial reports — especially a cash flow statement that specifically details the funds moving in and out of your business. Many accounting software programs (such as QuickBooks or Peachtree) can create these reports for you. Speak with your accountant or financial advisor to learn more about what to look for in these reports.
Pay bills intelligently
One good way to conserve your cash is to make the most of vendor payment terms, which are essentially interest-free loans from your suppliers. Take the maximum amount of time allotted (often 30 or 60 days) to pay invoices — for example, if an invoice is due on the 15th of the month, don’t pay it on the 1st. Many businesses now use electronic bill payment solutions, which let them set the exact date a bill is paid and money is withdrawn from their accounts. Talk with your bank to find out if this option is available to you.
Take advantage of incentives
The only time you should pay a bill early is if you get a discount. Some suppliers may offer an incentive for paying their bills quickly, typically within a week or two. It may be worth taking them up on the offer. Think of it this way — a 2% discount on a 30-day invoice translates into a 24% annual return if the money was invested. If your vendors don’t offer this, ask for it — they may be willing to do so to speed up their own cash flow.
Organize your receivables schedule
Slow-paying customers are the root of many cash flow problems. Don’t let invoices lag. Put yourself on an invoice tracking schedule using your accounting software. Not only can these programs generate invoices, but they can automatically classify accounts receivable by age — e.g. less than 30 days old, between 30 and 60 days, between 60 and 90 days, etc. Review your accounts receivables aging reports frequently so you can take timely action on overdue invoices.
Control your inventory
Money tied up in inventory can dramatically impact cash flow. Retailers and manufacturers are especially vulnerable in this area. Retailers should regularly gauge their inventory turnover ratio (cost of goods sold divided by the average value of inventory) to make sure it is within industry norms. Old or outdated stock should be cleared out through end-of-season sales to turn stale assets into liquid ones. Manufacturers can use supply-chain management tactics to have just enough inventory on hand to keep product lines running and meet customer commitments without tying up critical cash.
Consider leasing
Over the long run leasing costs more than purchasing, but its cash flow benefits can still make it a prudent choice. Leasing computers, cars, and the like lets you avoid tying up cash or lines of credit that might better be used for running your day-to-day business. Lease payments are also considered a business expense, so the tax benefits are maintained even though the items are not purchased.
Check your prices
Make sure your prices keep pace with rising costs. Many small businesses hesitate to increase their rates because they’re afraid they’ll lose customers. Customers actually expect their suppliers to institute small, regular price hikes. Also, check your competition regularly — if they’re charging higher prices, maybe you should, too.
Always get the best deal
One of the biggest cash drains is spending money needlessly. Avoid this by comparison-shopping for products where service and other value-adds are not critical. Buy in bulk to get price breaks for goods you regularly use in your business. Get quotes from competing suppliers for capital equipment. Also, check deliveries against invoices to be sure you’re getting what you ordered and that you’re being charged the correct price.
Healthy cash flow is really about making every dollar count. Make the time and effort to manage your cash flow effectively, and you’ll be on the way to long-term profitability.
Do you manage your cash well?
Without managing your cash - measuring it, investing it, borrowing it, and collecting it -- you can cheat yourself out of extra profits and end up in trouble with creditors and in bankruptcy.
Keeping track of your cash position is essential, because cash flow is the lifeblood of a small business and is fundamental to its existence. Financial failure is caused by lack of cash, not lack of profit.
Having "enough" cash means having enough cash available at the right time.
Poor cash flow can mean the loss of attractive opportunities such as the chance to buy inventory at bargain prices or to pay vendors early in exchange for discounts.
Cash flow is truly a flow, like the tide. Being aware of the different factors that affect this flow is important. Here is a list of some of the factors that contribute to the crests and troughs of cash flow:
• Nonregular disbursement items such as debt repayment, equipment purchases, and store furnishings.
• Seasonal sales that cause fluctuations in cash receipts and cash payments.
• Variations in biweekly payrolls; some months have three, while others have only two.
• The placing of large orders in order to obtain volume discounts.
• The payment of sales commissions or bonuses at the end of the year.
• Closing the business for vacations or repairs. Cash Crunch Warning Signs Is a cash crunch ahead? Look out for these potential warning signs:
Cash on hand has been declining for several months
Receivables are taking longer to collect
Payables are increasing
You’re putting aside bills that you typically pay on time
You’re unable to pay yourself a regular salary
You’re getting calls from vendors asking about invoice payments
Your inventory levels are increasing
You overdraw your checking account expecting new sales to cover it
You loan the business personal funds to meet routine expenses
Keeping track of your cash position is essential, because cash flow is the lifeblood of a small business and is fundamental to its existence. Financial failure is caused by lack of cash, not lack of profit.
Having "enough" cash means having enough cash available at the right time.
Poor cash flow can mean the loss of attractive opportunities such as the chance to buy inventory at bargain prices or to pay vendors early in exchange for discounts.
Cash flow is truly a flow, like the tide. Being aware of the different factors that affect this flow is important. Here is a list of some of the factors that contribute to the crests and troughs of cash flow:
• Nonregular disbursement items such as debt repayment, equipment purchases, and store furnishings.
• Seasonal sales that cause fluctuations in cash receipts and cash payments.
• Variations in biweekly payrolls; some months have three, while others have only two.
• The placing of large orders in order to obtain volume discounts.
• The payment of sales commissions or bonuses at the end of the year.
• Closing the business for vacations or repairs. Cash Crunch Warning Signs Is a cash crunch ahead? Look out for these potential warning signs:
Cash on hand has been declining for several months
Receivables are taking longer to collect
Payables are increasing
You’re putting aside bills that you typically pay on time
You’re unable to pay yourself a regular salary
You’re getting calls from vendors asking about invoice payments
Your inventory levels are increasing
You overdraw your checking account expecting new sales to cover it
You loan the business personal funds to meet routine expenses
Monday, April 25, 2011
Electing S-Corp status and applying for an EIN is easy
1)Electing S-Corp Status is easy
2)as is applying for an EIN
Total time = 1 hour
2)as is applying for an EIN
Total time = 1 hour
Thursday, April 21, 2011
Tax season 2011 is over
Well, it's that time of the year again. The end of tax season. For most tax preparers it's a time of celebration, for almost all taxpayers it's a time of relief. It's over. It's done. I may have had to pay but it's paid and over with. The tax cloud hanging over my head has now parted and the sun is shining.
As I reflect on this last tax season, I am proud. I had the opportunity to serve some new clients and to help my beloved current client base (you know who you are), a brilliant marketing mind, Mark Swanson, helped me to start thinking about marketing now and for the future and aided me in taking steps in that direction, and I grew in my knowledge and experience as a business owner.
It's all very rewarding for me. I love having new experiences; meeting and helping new people.
Assessment: This tax season was a success and the beginnings of many successful seasons to come.
Thank you all for letting me help you with my services
Sincerely,
Joel Eisleben
As I reflect on this last tax season, I am proud. I had the opportunity to serve some new clients and to help my beloved current client base (you know who you are), a brilliant marketing mind, Mark Swanson, helped me to start thinking about marketing now and for the future and aided me in taking steps in that direction, and I grew in my knowledge and experience as a business owner.
It's all very rewarding for me. I love having new experiences; meeting and helping new people.
Assessment: This tax season was a success and the beginnings of many successful seasons to come.
Thank you all for letting me help you with my services
Sincerely,
Joel Eisleben
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