Cryptocurrency and your Small Business

Cryptocurrency. Sounds like a Robot movie starring Will Smith in the year 2056. But it’s not- it’s been going on for years now- but recently the popularity of cryptocurrency has skyrocketed!

Cryptocurrency is a digital currency or asset that relies on encryption technology to transfer value over…the Internet. You may have heard about Bitcoin, Litecoin, Ethereum, Monero, these cryptocurrencies operate independently of a banking system and can be used in many counties as a store or exchange of value.

This type of currency represents a new way of small businesses to perform monetary transactions- it can affect the type of way a business accepts customer payments or how the way a business pays vendors.

Here are some ways your small business can benefit from using cryptocurrency as a form of payment:

  1. No processing fees: Companies such as Paypal or Stripe charge a fee..however since there is no intermediary, cryptocurrency doesn’t.
  2. High transaction speed: Happening in near real-time, cryptocurrency can be quick in your –virtual- pocket in less than a blink of an eye! Cryptocurrency such as Litecoin and Ethereum verifies transactions in as little as 20 seconds. This form is a lot quicker than the usual 2-3 days it takes for a credit card transaction to clear.
  3. All transactions are final: There is no way for a consumer to dispute a charge or negate a sale. Merchants have the advantage to better control their return policies and it removes the risk of chargebacks.
  4. More payment options for your customer: With adding an extra payment option you increase a wider customer base.

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New Tax bill and your business

In a Nutshell: Trump’s New Tax Proposal and Your Business

Intaxication: Feeling of excitement when you get more of a tax refund than you originally expected.

Within the past few months the Trump’s Presidency has implemented a new legislative bill that will change the way your business does taxes. From the latest GOP bill, businesses will receive scads of benefits. The biggest is being a cut in federal corporate tax. The rate will go from 35% to a whooping 21%. Also there will be a 20% deduction for all pass through businesses. In addition, married individuals who own service-based businesses such as accounting and law firms can receive 20% in deductions if they make under $315,000. Furthermore, the alternative minimum corporate tax rate will be eliminated!

Major economic outlets such as the WSJ expect a serious boost in profits! The Republicans hope that this will stimulate more of an economic growth- in which then will turn into more revenue for businesses.  

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Tips of choosing the right payroll company

Payrolls are important; it’s essentially what makes your employees the happiest.  Choosing the right payroll company can help lessen stress and make the process run smoothly. Here are top five tips in choosing the right payroll company for you!

1) Look for a top-notch customer service

Picture this-  it’s the first Friday of the month and your employees have to get paid, but for some reason the payroll system isn’t working…you are in panic. Angry employees are no fun.  You only notice this half an hour before the payroll report is due. You call up your payroll company and put on hold for around 40 minutes…panic turns into more panic. There is no better feeling than being able to reach someone on the phone when you have a question, no matter the time of day.  When finding the right payroll company for you, make sure they have a great customer service team who is always available when you need them!

2) Data security as strong as the secret service

Security is one of the most important aspects of choosing the right payroll system for your company. Considering all of the sensitive information that payrolls have, if someone who is not authorized gains access to it, it can be a nightmare for both the employers and employees. Make sure you choose a payroll system that is insurance and have a high-security encryption.

3) Clear pricing and no unwanted surprises

“Get monthly payroll for little as $13.99 when you sign up today!”- sounds pretty enticing doesn’t it? However, it’s important to always look closely at the fine print of the advertisement.  Furthermore, make sure you look at what are the additional features you may need and if they will cost you. For an example, some payroll companies charge additional fees for automatic check signatures or printing and check delivery.  Before choosing the right company for you, make sure you outline exactly what you need and get an estimate on the total cost.

4) Take consideration of your company’s employee count growth

Look for a payroll company that grows with your employee growth. It should be easy to start off with and to add on new employees as needed. Consider evaluating the set-up time that it takes for you to set-up an employee. Time is of the essence!

5) Look for top notch IT solutions

It’s 2018, your payroll system should not look like dinosaurs have used it. Look for a payroll company that has a great IT infrastructure!

 

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Top 5 Bookkeeping tips

When you are a small business owner, there are some vital things that are the backbone to your business…such as bookkeeping. When you bookkeep right, you understand your financial records and you can manage debits/deposits. Without proper bookkeeping of all of your business finances- you can easily end up bankrupt or in massive debt.

1) Keep notes of ALL of your financial records…and always back them up!

It is important to ensure that all of your financial documents that are used in day to day business transactions are well kept for future reference. This helps when you have to do taxes and it also establishes a good financial ground for your business when it potentially expands. Also, it is important to keep copies of your financial records- just incase if one goes missing or gets by accidentally destroyed.

2) Separate Receivable Payments from Borrowed Loans

Unfortunately one of the leading causes of business failure ise poor management of the company’s financials. Mixing of funds deposited by clients together with the funds that businesses have borrowed might lead to confusion and later turn into a financial crisis. Organization is key! Yalber advises to have the right bookkeeping software that allows you to keep records of income and borrowed funds separately for easy and quick follow-ups whenever needed.

3) Set aside weekly time to review your books

With reviewing your books on a weekly basis,  it will help you keep updated about the state of our business. With doing this, you will be able to manage your cash flow and get to know your weekly expenses and be informed of your current invoices.

4) Don’t wait till the end of the year to talk to your accountant

Find a good advisor that you trust and make it a point to be in contact with your accountant regularly, not just at the end of the year. Doing so will make sure that if you have any bookkeeping issues, it will be caught in a timely manner…not at the last minute.  Also this helps to know that you are in the right financial track with your business.

5) Understanding Debit and Credit

Yes, yes of course you know what debit and credits are. But its important to stress how essential it is to understand the notion of balancing when it comes towards the accounting of your bookkeeping. Every transaction your business makes, has a debit and credit.  When you are using an accounting software, recording transactions are easy .But when you are doing this in Excel – it can be easy to make a mistake…make sure that you record both debit and credit.

Rule of Thumb:

A debit means:

  •   Increasing an asset or expense account; and
  •   Decreasing a liability, equity or income account.

Credit is the opposite. It means:

  •   Increasing a liability, equity or income account; and

Decreasing an asset or expense account.

 

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