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Accounting Checklist for Business Startups in Akron

There are a few steps that you should take to ensure that your small business is successful. Organizing your accounting practices early will assist you to concentrate on the important work of growing your company. You will realize that there are a number of finance software applications that you can use for your accounting practices.

Bookkeeping is an essential part of any company because it helps in controlling the operations of your company and avoids an audit by offering the IRS what they require. Therefore, in order to attain your long-term objectives, increase your sales and organize your company’s accounting practices, ensure that you consider the following factors;

  • Make sure that your small business is legally registered and thereafter open a bank account for your company. The bank account for your business should be separate from your personal account including checking and credit card. Separating your company and personal expenses will give you peace of mind in the future.
  • It is critical for you to keep a record of all your expenses so that you can be certain that your business will be successful. This activity will assist you to track the development of the organization, organize your financial statements and also the deductible expenses. Therefore, keep all the important receipts of your business.
  • Develop a bookkeeping system through the different kinds of software that are available or simply an Excel worksheet if you have a very small number of monthly transactions. Additionally, you can hire a temporary bookkeeper that is based near your business.
  • The next step is to create a payroll system that will assist you to assign different roles in your small business and then compensate them for their input. Create a payroll system for all employees including permanent staff members and independent contractors. There are many companies that offer payroll solutions and your accountant can recommend one.
  • You should produce accurate and detailed invoicing so that you can easily answer questions from your clients in case of a misunderstanding. In addition, you should consider online payments so that you can automate your bookkeeping process.
  • You need to be ready to receive large expenses such as computer upgrades and equipment repair. These kinds of major expenses can come up in a slow month and therefore, you should be ready to avoid a cash crisis.
  • Devote some time to update your books. Dedicate a few hours per week to clear out your paperwork so that you can avoid a long pile up. It is important that you stick to the days that you have set aside so that your books can be updated at all times.  If you have hired a bookkeeper this is easier for you as you just need to be organized and get information to them, and keep an eye on their work.
  • Re-evaluate your accounting practices regularly. At the start, you will only use an Excel worksheet; however, as your company grows you will need to use more improved methods. Therefore, when you realize that an Excel worksheet is not adequate for you and needs a lot of effort; you should begin to look at the Internet-based bookkeeping platforms. Continue to reassess the effort and time that you use for your company’s bookkeeping so that you can save time for other more relevant activities.

Not taking accounting seriously is a huge risk for businesses.  It can lead to lost money, paying too much in taxes, poor business performance and even large penalties and fees simply by not paying things on time. If you are not able to conduct the bookkeeping process on your own then you should seek the assistance of an expert. That way, you will have a chance to concentrate on running your small Akron, Stow or Fairlawn business and try to get ahead of your competitors.

 

 

 

Akron Business Networking

Akron is full of things to do.  But if you are starting a new business or if you want to get out and meet more people because you are in sales, you have to know where to go.

What many people do not realize is that not only is there an Akron Chamber of Commerce that provides business networking opportunities in Akron, but there are many other chambers as well in all the surrounding communities.  I have been to Fairlawn, Kent, Stow, Ravenna, Streetsboro and more different chambers.

Beyond that, Rotary is in many of these same communities.

Then you have professional networking organizations that provide specific networking opportunities.  One I was in was B to B Connect which generated a lot of referrals for our business to business marketing agency at the time.  They had groups in Kent, Stow, Akron, Streetsboro,  Aurora and more locations.  Because the same group meets every two weeks, you get to know people better and even if you do not get business, you will probably develop some good business friendships.

Network After Work puts on events in Akron and Cleveland as well and you do not have to be a member to attend and meet some new people.  The combination of events to meet new people and other events where you get to know people better is very powerful over time.

Then you can check Facebook Groups, LinkedIn and MeetUp to find even more things going on in Akron for business networking.  If you want to go to something new every few days you should be able to find something.

Some tips to networking better:

  1. Follow up the next day – nothing is more frustrating when people do not follow up after meeting.
  2. Do not expect sales – look to grow your network of connections and keep them fresh (reaching out regularly) and the sales will come over time.

Sure you can go to Cleveland which has come great events as well.  But chances are you can find all the new customers you want in the greater Akron area if you just know where to look.

Kid Proof Your Home Office

Here are a few tips to kid proof your home office if you are a work from home mom:

1. Keep as few wires as possible reachable to little hands. That means position your furniture to cover outlets so wires are not exposed and inviting little hands to pull at them. Also, you can get cable covers and wire clips to hold several wires together.

2. Keep as much away from the edge of surfaces where little hands can reach. For instance, keep your computer monitor far back and when you are not using your keyboard put it above your monitor if possible. Also, unplug your printer and fax machine when not in use so that even if little hands get on them they can’t do much damage.

3. Your file cabinet will be hard to keep organized if your little one keeps getting into all the papers. The easiest solution is to get locks for the drawers. However, be careful that they cannot lock themselves in the drawers.

These are a few inexpensive tips to help you if you are trying to earn extra money at home. Of course the ideal would be to lock your office door when you are not working and only work when your little one is not around. However, this is not always practical and therefore I hope these simple tips are helpful as you set up your home office.

Jobless But Earning – Three Ways To Earn Money Online Without Actually Being Employed

Intriguing title, isn’t it? After all, a lot of us would want to earn money without having to work, but hold up. Don’t get me wrong here. This is not one of those posts that say you can earn money just by lying in your bed all day. Don’t confuse the phrase “not being employed” to being lazy because I’m pretty sure those two are not the same. And just to be clear, I do not know of any way that you can earn money just by doing nothing.

This post, however, will provide you three ideas where you can possibly make money online without actually being employed. By employed, I mean that you have your own employer with definite working hours throughout the day. I would also like to clarify that this is not for everyone and not every person who will read this post and try out these ideas will be successful at it. This will still take some effort on your part and perhaps, a little bit of luck. Are you ready to hear out these ideas? Let’s begin then.

  1. Set-up an online business. I know, very original, but seriously, consider the perks of this. You are your own boss. The success of your business, however, will depend on how much you work for it, but if it’s something that you love doing, it’s not work at all. If you love baking, you can set up a small cupcake business. Cupcakes are so in these days, so you may have a lot of competition, but if your products taste absolutely amazing, word will spread. Don’t be shy. Ask your friends for help, they can recommend prospective clients to you. You don’t even have to own a bakery to do this. In fact, I would suggest starting a homebased business. It will cut your initial costs while you’re still starting up. Another great online business would be selling knick-knacks, especially if you love visiting thrift stores for collectibles. You can set it up in an online marketplace like eBay and start earning.
  2. Sell gigs. What are gigs, you ask? Gigs are simply things you offer to people who need to outsource work online. There are many websites where you can sell gigs, like Fiverr and Gigbucks. Are you a writer? Offer to write a 1000-word story for a gig then. Do you like making crafts? Great, you can offer to make a scented candle for a fixed price. You don’t have any talent except that you look cute and quirky on cam? Not a problem! Gigs can be serious or wacky, it doesn’t matter. If you’re good at something (wholesome, please), offer your services in the site. Who knows? Someone might find the video of you singing Happy Birthday adorable and will hire you to make one for him.
  3. Sell items at an online consignment shop. Are you one of those people who like to buy designer bags or shoes, but get bored after wearing them twice? Well, there are a number of online consignment shops that offer to sell your gently-used clothing or bags. The shop will have to take a percentage off the sale, but that’s normal. Besides, you can get rid of you stuff to make room for more and earn money to pay for your next designer item.

So, there you have it. While these ideas will work, success will not be possible without some effort on your part. These may not be actual jobs, but it requires hard work and ability to make it possible for you to earn some money from it.

Do you have other ideas on how to earn money online? Share them with the other readers by commenting below.

Becoming a Work at Home Parent

Are you a full time working parent working the 40 hour week? Would you like more time with your kids and a more flexible schedule? Have you ever thought about a work from home company? It is possible as more and more moms are turning to working from home. It might be time for you to find that work from home business income opportunity that will fit you.
All you have to do is type in work at home and a whole list of opportunities pops up on the screen. You have a choice in almost any field of your choice. There are many companies and businesses out there that are looking for people who want to own their own work from home company. There is much to be researched before jumping into the first one that grabs your attention.

You need to first start out by getting information on each and every company that you are interested in. If possible start a business in something that you find interesting. You will have more success if you enjoy what you are doing. Wanting to start your own? Write some ideas out and just as you prepared for your baby, you need to prepare for your business. Get some money saved or at least get used to dining in more often than out. It takes money to make money.

Being a work at home parent can be very rewarding. You can have the freedom to work when you want and still be with your children. Many moms and even fathers are choosing to stay at home and work from home as the economy is tight. There are many different things you should look into before starting and be sure to do your research thoroughly. As with many businesses, you will have to invest some money but as far as how much, that all depends on what type you decided to do. They can all range from less than $100 to several hundred to start.

One option if you enjoy it is writing.  Maybe even publishing your own local magazine.  Many companies need writers to help with websites and social media.

Make sure you stay organized, find some good marketing and advertising that will get your name out there, and be sure you have a home office set up so that you can concentrate on the task at hand. Lastly, be patient. Rome wasn’t built in a day and your business will take some time to become established and to get going. It will all be worth it in the end.

Tax Advantages with Home Based Businesses

Tax advantages with home based businesses are plenty that there is no reason not to take the income opportunity home based business provides. Tax advantages include equipment deduction, deductions on office supplies and furniture, and travel needed to provide service.

Employing yourself to the income opportunity home based business basically means that you may have a certain area in the house dedicated to the business. The IRS regards this as the work space and allows deductions for any needs that will support that area of the house.Equipment including computers and service equipment needed to start the business can be deducted from taxes and allow ample opportunity to purchase what is needed. Thinking big in your business can be an excellent way to kick start the career from home but it is generally recommended to start small and then work up to more expensive equipment depending upon the area of expertise.

Deductions include furniture and office supplies for your income opportunity home based business and can provide the office space with enough to feel comfortable. Working from home should be a comfortable experience in order to provide enough space and arrangement for furniture to work within the area. Creating a theme in the workspace is highly recommended for the career from home minded individuals for a pleasant working environment.

Traveling, entertaining, and fuel expenses can also be deducted from the taxes of a home based business. These are plausible opportunities to gain further clients and provide service or products for the growth of the business.

Applying for Growth Capital? Leave Emotion Out of It

It’s a given in the financial industry that small business owners are unrealistic when valuing their companies.  The owner who knows the true value of his business is the exception rather than the rule.  Unfortunately, not knowing how much the business is really worth eventually creates problems – big, hard to ignore ones.

One of the biggest problems occurs when owners want to grow and need outside capital to do it.  Owners who want debt/venture capital to generate growth have to know and be able to prove 2 things.  One is the actual, not perceived, value of the business (tech not withstanding) and the other is the company’s ability to pay the money back. 

Whether raising money through investors, creditors or both they’re going to want to see hard, reasonable numbers based on revenue, profit, physical assets, receivables, contracts (current customers) and letters of intent (future customers).  It is naïve and unrealistic to expect the process to be different. 

And yet, owners do it all the time, because most of them don’t recognize they’re acting on emotion rather than logic.  They believe they’re being rational, but they aren’t, which is where the problem starts. 

Although they don’t see it this way most owners are emotionally attached to their businesses, as they should be.  Many financed their own start-ups through personal money/credit, family and friends.  They worked hard and sacrificed to achieve success, eventually providing a better future for themselves and their families. 

Their initial hopes and dreams were realized and they feel good about it.  They want to take the next step and get outside capital to continue that success – seeing the application process as a continuation of their needs, desires, hopes and dreams (emotions), rather than a business transaction (logic).

Overwhelmingly, small businesses owners expect to get growth capital based on future speculation, rather than the current worth of the company and its ability to repay the money.  They want to continue to take chances and bet on their ability to make their dreams come true, not understanding when the bank doesn’t.  However, for every level a business grows the old cliché – it’s not personal, it’s just business – becomes more and more applicable.

Developing Leaders in Akron

It’s an old debate — can great leaders be made or are they just born that way?  While there are some people who’re born with natural leadership talent, the majority aren’t.  But, being born with the talent doesn’t mean it’ll be used effectively or guarantee success.  We all know a charismatic slacker, who “wasted his potential”.

A natural aptitude is not enough to become an effective leader; even those who have it must learn how to use it. They sharpen their skills through trial and error, just like the people who don’t have an innate ability.  Successful leadership is achieved through intentional focus and the willingness to learn.  Here are 3 things to focus on and practice.

Build a base of supporters

Good leaders commit to a long-term strategy which builds support and connections before they need them.  They create allies both within and outside the organization.  We’ve all had the experience of feeling used and resentful when someone suddenly notices us because they want something.  At best they get begrudging help and at worst can be sabotaged.

Build credibility

Do the work, there are no shortcuts.  On-going, long lasting successful leadership is built on the firm foundation of good execution and taking responsibility, which earns other’s trust and respect.  The capital you accrue is what you spend when (not if) you make mistakes.  It’s the difference between “He messed up, we need to get rid of that guy” and “Well at least he was trying to do his best, he’ll do better next time”.

Build others interest in your success

People respond to winners — they want to help, be around and work with them.  They respond to them for the most human of reasons, “What’s in it for me?”.  If you learn to listen to and act on what’s important to others, they’ll become invested in your success.  They’ll actively promote your ideas and support your power when they see how it’ll benefit them.

There’s this belief that leadership should be organic, people either got it or they don’t.  This simply isn’t so.  Successful leadership is achieved through intentional focus, a lifelong willingness to learn and practice, practice, practice.  Being born with the gift of natural leadership is the least of the skills you’ll need.

10 Ways To Free Up Your Time

Let’s talk about how to free up a bunch of your time.  Most people feel overwhelmed and busy most of the time and there are ways to put more minutes back into your day and they do not take too much effort.

There are a lot of reasons you should want to free up your time.  Even if you just want to have more fun and enjoy life more, freeing up time is a noble en-devour.  Another reason you might want to free up time is to do more side gigs and make some extra money to pay down bills.  Either way, well worth doing.  Here are 10 ways to grab back those minutes.

  1. Live close to work – Have as small of a commute as possible.  If you are living in Hudson and working in Fairlawn, why?  You can change your job or your home.  Cutting your drive can add an hour or more a day to your free time.
  2. Work from home – Better yet, make your commute a short walk to your home office.  You may be able to work from home all the time or only some days a week, but cutting down on drive time can free up your day.  Also, less office chit chat might make you more productive.
  3. Plan your meals – Do you go to the store every day or two?  Plan out your meals for the week and shop once.
  4. Get up early – Get up earlier and go to sleep earlier.  Chances are you are more productive in the morning and even if your sleep hours remain the same, the morning hours will probably be more productive and free up time later in the day.
  5. Time your errands – Do your errands, such as going to the post office, the bank and shopping during times when other people are working.  This cuts down on lines and waiting.
  6. Prep outfits – Know what you are going to wear for the week and prep them all at once.  The less you need to think about your clothes the better.  There is a reason that many great leaders have worn the same outfit most of the time.  They save their time and energy for more important things.
  7. Declutter your home – In our article on decluttering your home, we talk about how having less stuff saves time and money.
  8. Automate finances – One of the best things I ever did was automate most monthly financial transactions.  I know how much money I need to have in my account and everything happens automatically, saving me time and avoiding late fees.
  9. Hire help – If you are not an expert on something, don’t try to do it yourself (unless you truly enjoy figuring it out.)  You can find people to do thing much more affordably than before with sites for people doing gigs like tutoring, handyman, lawn care, etc.  Know what your time is worth and don’t waste it when you could hire out more cheaply.
  10. Limit Non-work Screen Time – Whether it is binge watching Netflix or reading fake (or real) news, limit your time in front of screens and get back hours a day.

All of these things individually are fairly minor habit changes or location changes that can vastly free up your time and improve your life.

7 Common Business Mistakes

When you have a business, you are bound to make mistakes.  Even if you have a business degree, you are rarely going to be good at everything you need to do.  It can be overwhelming.

We have assembled seven common mistakes people make when they are business owners.  If you catch these things up front, you are going to save yourself money, headaches and possibly save the business itself.

  1. Not Charging a Late Fee – If you do not charge a late fee up front, it is much harder to add it later. A late fee is not a way to make extra money.  Instead, it is a way to encourage on-time payment and reduce slow pays from people.  If they call and complain, you can always “forgive” it one time as a courtesy.  Having dependable cash flow is critical for keeping the doors open for any business.
  2. Not Promoting Business Where People Are Reading – People spend more and more of their time reading in social media and on their phones. So, your marketing plan must include a mobile friendly website and promotions in social media.  Our magazine is an example of how this can work.  Businesses pay to be featured in our mobile friendly online magazine and we push the articles out via paid social and news channels to be seen where people currently spend their time, generating many thousands of views of active, targeted potential customers.
  3. Never Raising Your Prices – You do not want to do a bait and switch (raising prices quickly or unexpectedly) but you also do not want to never raise your prices. Inflation and added costs to your business for other services justify a modest price increase regularly.  Most customer’s do not mind a modest increase regularly in industries where it makes sense.
  4. Allowing Too Many Customizations and Options – If your business offers too many options and customizations, there is a good chance you are hurting sales and making your business more complex and expensive to run than you need to. Just as an example, a restaurant with too many items on the menu must stock more ingredients, hire more cooks and prep people, spend more time training people and probably end up with more food sent back.  Focusing on a small but very tasty menu can improve costs, make customers happier with easier options, improve service and speed and help you be known for something very specific.  These same issues could be true for an accounting firm, a retail store or car sales.
  5. Getting Sold Things You Do Not Need – Once you open your door people will start telling you that you need SEO, registered with Google, employment posters, signs, insurance, etc. All of these things are valid usually, but you need to understand what they are, why you need them and carefully choose a vendor if you are buying services or products.  Don’t buy from the 1st person to send you an email about it.
  6. Not Using a Payroll Company – If you do not know how to do payroll, a payroll company is the way to go. There are a lot of forms to file and there are monthly requirements, quarterly requirements and annual requirements.  Trying to do it yourself in Excel will probably result in fines if you are late or make a mistake.  The small cost of a payroll company is well worth not having the paperwork headache.
  7. Buying Things You Think You Need To Have – Lastly, if you are just starting a business it is common to think you need things that you actually do not need. For example, many companies now run virtually without office space.  You might think you need a fancy website, but you actually only need one page and active social presence.  You might think you need brochures, but chances are you do not.  Landline phone?  I doubt it.  Before you buy things you think you should buy, really take a hard look at what you really need and do not get stuck in an old way of thinking.

The last twenty years have seen a lot of changes.  With cloud apps, shared office space, outsourcing and mobile devices there is a good chance you can now get a lot of work done and build a business without all of the old overhead.  Keep all these things in mind and build a leaner business and you will be more successful.