It's time to hire a bookkeeper, but how do you know if they are a good fit?

Get Ready For Your Best Year Yet

Financial statements are an essential part of small business finances. They provide a snapshot of a business’s financial health and performance. Each one provides valuable information that can be used to make decisions about the future of the business. Understanding these statements is essential for any business owner who wants to make informed decisions about their finances. What are financial statements? Financial statements summarize a business's financial performance over a specific period, such as a quarter or a year. These statements include three direct reports: the income statement, the balance sheet, and the cash flow statement. 1. Balance sheet. The balance sheet expresses the financial position of a business. It shows three things about a business’s financial health: its assets, liabilities, and shareholder equity (or capital). When combined, these three elements make up the worth of the business for the period the balance sheet covers. 2. Income statement. Also called the Profit and Loss (P&L) statement, the income statement helps determine whether the business turned a profit or loss for each period of time. An income statement summarizes a business’s profitability and financial results for a period. It focuses on revenue and expenses. This financial report shows what it costs to create your products and services and keep the business running. It is handy to compare how a business’s revenues increase or decrease over multiple periods. 3. Cash flow statement. A cash flow statement measures how well cash flows through a business to keep operations running, pay employees, pay bills, and invest in opportunities. It is the third primary financial statement businesses must produce. Cash flow statements enable the business owners and partners to understand how a business runs: if there’s sense, process, and predictability in the operations, and if the business is on solid financial footing. Anyone can learn how to create and draw insights from a business’s financial reports. Investors, business owners, and managers need to understand the results and trends to drive the business successfully. Unsure of where you stand financially, we’d love to help! Schedule a call . We can help come up with a solution customized for your needs.

As a business owner, financial responsibilities can be complex, especially when it comes to tax obligations. One crucial aspect that often surfaces is dealing with 1099s. In this quick guide, we'll discuss the common scenarios in which a 1099-NEC might be issued: Independent Contractors: Businesses must issue a 1099-NEC to independent contractors, freelancers, or other self-employed individuals who have provided services and received $600 or more in compensation during the tax year. Freelancers and Consultants: If you hire freelancers or consultants for services and their total compensation reaches or exceeds $600 within the tax year, you are required to issue a 1099-NEC. Rent Payments for Business Purposes: If your business pays $600 or more in rent to an individual or entity during the tax year, you may need to issue a 1099-NEC. You don't have to issue 1099-NEC forms to C-Corporations and S-Corporations. In general, you don’t have to issue 1099-NEC forms to C Corporations and S Corporations. But there are some exceptions, including: Medical and health care payments Payments to an attorney Substitute payments in lieu of dividends or tax-exempt interest Payments to 1099 vendors made via credit card, debit card, or third-party system , such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don't have to. 💡It's essential to keep accurate records of payments made and consult IRS guidelines to determine when 1099 reporting is required. Failure to issue the required 1099 forms may result in penalties. And here’s a final tip: Be proactive! Always get the W-9 before you issue payments to any vendor who may be required to get a 1099-NEC. Less-reputable vendors might not be around when you need their information at tax time.  Need help getting your books in order and organized for this tax season? We can help! Schedule a call today .

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The entrepreneurial journey can be a rollercoaster, and we want to help you stay on top of the ride. So, today, we're sharing some valuable tips on how to combat entrepreneur burnout and keep your inspiration alive. Prioritize Self-Care. It's not selfish to take care of yourself. In fact, it's essential for your well-being and your business. Schedule regular breaks, exercise, and maintain a healthy diet. Remember, a healthy you is a productive you. Set Boundaries. Learn to say no when necessary. Setting clear boundaries between work and personal life can help you avoid overworking and maintain a work-life balance. Delegate and Outsource. You can't do it all alone. Delegate tasks to your team or consider outsourcing. This allows you to focus on what you do best and reduces the weight on your shoulders. Time Management. Efficient time management is crucial. Plan your day, prioritize tasks, and allocate time for each. Tools like time-blocking can help you stay organized. Stay Passionate. Reignite your passion for your business. Remind yourself why you started and the impact you want to make. This can provide a much-needed motivational boost. Seek Support. Connect with fellow entrepreneurs, join business groups, or find a mentor. Sharing experiences and challenges can be a great source of support and motivation. Regular Breaks. Don't skip vacations or downtime. Regular breaks can help you recharge and return with fresh ideas and energy. Celebrate Wins. Don't forget to celebrate your achievements, no matter how small. Acknowledging your successes can boost morale and keep you moving forward. Remember, it's normal to experience burnout from time to time. The key is recognizing it and taking action to prevent it or recover from it. Burnout doesn't mean you've failed; it's a reminder that you're pushing the boundaries of your potential.  Facing the challenges of managing your business finances? We're here to support you every step of the way. Call Allied Numbers today for help in getting your books in order. (309) 222-8386

Christmas is almost here!! …. yep, and so is YEAR END! In regard to your business, what do those words make you feel? · Excited to start the new year and get new goals in place and plans in motion? · Filled with dread knowing tax time is coming? · Wondering what you should be doing to prepare for year end? Here are 3 things to do before the end of the year to be prepared! 1. Get ready for 1099s and W2s! Gather your list and check it twice! If you paid someone $600 or more for services this year, be ready to send them a 1099. Check to make sure you have their updated information and a current Certificate of Insurance showing their liability and work comp limits. For employees, they are going to be eager for those W2s ASAP. If you can, send out a reminder asking them to update their address if there’s been any changes especially if you send out paper copies. 2. Take the first look at your year in review. Pull your financial statements. You want to look at your Income Statement (aka Profit & Loss), Balance Sheet AND Statement of Cashflow. What does it look your bottom dollar will end up? Do you like what you see? If you’re sitting pretty comfortably in the black, take a look around and consider upgrading or replacing any aging assets or office equipment that gave you a headache all year. If you haven’t already, reach out to your tax accountant for some last-minute tax strategy! 3. CELEBRATE your wins & learn from your losses. Take a moment to recognize all the hard work you put in this year and the progress you have made! What goals did you hit? Where did you fall short? Evaluate and learn so that next year can be even better! Blocking out a couple of hours to do this before the end of the year will help you to be more informed about your business and prepared for what’s ahead! Need help reviewing your numbers or pulling your information together? Book a complimentary introductory call with me now so that we can create a game plan for you!

As we approach the end of another month, it's time to ensure your books are in tip-top shape. Here are some valuable month-end bookkeeping tips to keep everything in order. 1. Reconcile Bank Statements . Start by reconciling your bank statements. Ensure all transactions match between your records and your bank statement. This will help identify any discrepancies or errors.  2. Review Outstanding Invoices. Go through your accounts receivable and follow up on any outstanding invoices. This is crucial for maintaining cash flow and reducing bad debts. 3. Record Accruals and Prepayments. Ensure you record any accruals or prepayments for expenses or income. This will provide a more accurate picture of your financial health. 4. Double-Check Tax Obligations. Verify that you're up-to-date with tax payments and obligations. Late fees and penalties can add up, so it's best to stay on top of them. 5. Create Financial Reports. Generate key financial reports, like your profit and loss statement and balance sheet. These reports offer insights into your business's financial performance. 6. Plan for Next Month. Use the end of the month to set financial goals for the upcoming month. This will help you stay proactive in managing your business finances. Remember, good bookkeeping is not just about compliance; it's also a powerful tool for decision-making and growth. Don't hesitate to reach out if you need any assistance with managing your business finances.