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Trusted Public Accountant for Small Business

It is already November and near the end of the year, it is time to preparing for business financial report and also that tax audit preparation. It is going to be very busy weeks ahead for a small business organization with limited resources. Most companies have their own accounting department to handle this kind of work and not to mention they also have independent audit firm. As an owner of a small business, you practically cover many different things and it can be really stressful to handle financial review and tax report preparation.

Good financial review is very important to your business sustainability. It can show whether your business has been performing well or not and whether there’s substantial financial problem to deal with. Tax report is even more complicated and you are legally required to report the tax correctly otherwise there will be very serious consequences. Working this kind of work can be really overwhelming without the right expertise and supportive resource. It is much wiser that to hire a professional accountant to handle the financial report and tax preparation. It would deliver better result. Well, it is understandable that you are concerning about the budget. As small business, every penny matters and you need to make sure that the budget to hire an accountant won’t be a huge burden. Being budget concerned doesn’t mean you can compromise with financial accountability. Be a smarter business owner and find the right partner you can trust and rely on, someone like Richard Steiman. He is a leading certified public accountant Surprise AZ, a partner of Bisceglia, Steiman & Fudeman, LLP. This firm has top reputation in public accountant and financial consulting services in greater Phoenix area. It has long list of clients, both individuals and business entities, and among them are high profiled names.

A certified public accountant with years of professional practice, Richard Steiman is highly trained and highly experienced in all fields of accountancy and finance. With his partner from the firm, one of the passions is helping small business to become a sustainable business through complete series of accounting and financial services. This kind of services are designed for small and medium enterprises with limited resources and lack of competencies to deal with sophisticated financial reviews, financial report, and tax preparation. Richard Steiman is able to handle the financial review of your business making sure everything is well recorded and well reported. This accountant is also ready to provide consulting services for your small enterprise to manage it finances better. It is ranging from designing the bookkeeping and accounting systems, payroll services, business planning, financial analysis including projection analysis, and assistance for business loan application.

When it comes to tax preparation, Steiman is the one to trust. He has expertise in this field and has experience in different types of tax form. He will make sure that your business tax report is precise and comprehensive and more importantly, compliant with IRS rules and regulations. He is also the expert to determine possible tax credit and deductible to help you get saving from tax payment. More than just preparing tax report correctly, he will provide assistance and representation when your business is audited by IRS. He is the one to help you get peace of mind knowing you won’t get any problem with the IRS.

Don’t let accounting becomes an issue preventing your business to grow. There’s no need to hesitate hiring this accountant. You can call the firm and schedule a meeting with the accountant. He will be more than happy to hear about your business, your plan, and also your goal. He will provide the right service to meet your expectation and goal. More importantly, you will have a trusted partner to help with your business finance. You will love to know that the budget to hire this accountant won’t be a big burden to your small business. It is going to be very competitive and reasonable. Having Richard Steiman helping you with the accounting, you can focus on what you know best, creating new innovation for your business to grow.

Tips for Saving Money on Business Travel

Business travel is very different from traveling for pleasure. Traveling for work has its limitations with respect to duration and expense. Since economic viability is of importance when it comes to any business undertaking, one has no choice but to consider ways in which unnecessary outflow of cash can be harnessed without much ado. Fortunately, there are several things you can do to make your business travel easy, affordable, and smooth. We have mentioned these things in the form of simple, easy-to-understand tips. Once you’re equipped with these tips for saving money on business travel, you can effortlessly save hundreds to thousands every year. Shall we start noting them down?

#1. Evaluate phone charges.
Thanks to the perpetually skyrocketing roaming call and data charges, one of the most exorbitant bills you pay after a business trip is your phone bill. An intelligent way to tackle this problem is to buy a local SIM card every time you visit a new place where you are likely to spend a substantial amount of time. By cutting down on roaming charges, you’ll save a LOT of money by paying for only local outgoing call charges. As far as internet data charges are concerned, the best advice I can give you is to use Wi-Fi. Mostly all airports and hotels now offer free Wi-Fi services, so this shouldn’t be a problem. Finish as much work as possible using the Wi-Fi connections at these places; it’ll drastically reduce your costs later on.

#2. Carry enough reading material.
This may look like a weird, quite unconventional a tip that may not really be of any help, but before you jump the gun, hold your horses. Think about it, don’t we usually end up buying a magazine or a book at the airport in order to keep ourselves entertained throughout the journey? While working on the flight is a good option to finish pending work, sometimes you only want to unwind. Instead of spending a few dollars here on reading material at the airport, load a few articles, books, and even movies on your cell phone. This way, you won’t add to your luggage and your expenses.

#3. Say yes to public transport.
By using the public transport in any city, you can further reduce your business travel expense exponentially. How does this work? Seek details of the area of your travel for the day from the hotel reception. Ask them to provide commutation details, such as modes, alternative routes, and approximate charges. This way, you can cut back on almost 80% of your commutation costs when compared to the amount you would have to shell out for a cab. If the hotel doesn’t have these details, use Google Maps. It’s one of the best apps for such kind of information. You might pay for Internet data charges, but they’ll still be lesser than the cab fare you would be required to pay.

#4. Lookout for deals.
There are a million travel deals you can tap and cash in on if you keep an eye out for them. The best and most profitable of the lot is the frequent-flyer program (FFP). Almost every airline, old and new, offers this loyalty program. Under this, you become entitled to several discounts, privileges, and offers, especially if you fly quite often. The best places to find these deals are airline magazines. Always go through these magazines, usually kept in the seat pocket in front of you, and you’ll be surprised to find some of the best deals you’ve ever come across. Apart from this, you can also apply for a debit/credit card that has a tie-up with an airline.

#5. Never fall prey to luggage fees.
The most unforgivable mistake you can make is to create situations to pay luggage fees. It’s not always possible to weigh your luggage at the last minute, but it’s always possible to save a lot of money in this area by being a smart packer. Business trips don’t need much luggage and there are a few tips you can follow to reduce your luggage just in case you’re combining meetings or planning on a long trip. You already know how you need to replace magazines and books with eMagazines and eBooks. In a similar way, cut down on multiple gadgets and instead carry one that functions as an all-in-one cell phone, music player, tablet, camera, and laptop. Apart from these, don’t carry too many clothes, food items, and/or stationery. Calculate the number of days you are going to spend at a place and pack the exact number of clothes in keeping with your itinerary. Fill the empty spaces inside your shoes with jewelry, socks, handkerchiefs to save on space. Keep things as minimal and compact as possible.

#6. Go for rooms with kitchens, not minibars.
Though a business trip may not give you time to cook, it’s advised that you pick hotels that have rooms with kitchens. This way, you can cook your own meals even if you choose to make just an omelet. Minibars seem tempting; all you have to do is open the door and serve yourself. However, bills that come with the usage of minibars are usually far from attractive and highly inflated. Items available at a minibar are always charged at a higher price, sometimes as much as 30% more. A room with a kitchen will also enable you to save the money you would otherwise spend on eating out. By choosing this option, you can work, eat, and rest in just one place.

#7. Befriend locals.
The best people to help you when visiting another city are not guides or agencies, but locals. They know the city the best and have no hidden motives; they don’t gain or lose anything by cheating you. They’re the best people to approach when you need help with directions, prices, or suggestions. Just by asking a local for something as simple as directions, you save on Internet charges by not using apps, on money you may end up spending while commuting via wrong or longer routes, and in the end, time – the most crucial element while on a business trip. They also come to your aid when you’re looking for inexpensive places to eat, relax, or work.

#8. Club trips to save thousands.
Most of the time, an executive travels to a specific place to work with a specific set of clients. In such cases, it is always advised to combine trips. For example, if you’re meeting a client in Italy, you might as well make arrangements to meet another one in Spain right after your schedule in Italy. Imagine the amount of money you will be shelling out if you go to Italy, come back to your original country of work, and then fly out to Spain again! You can actually save yourself a lot of money by avoiding at least two extra to and fro trips by planning your travel smartly. This not only applies to places that are located in the same geographical area but also to places that are halfway around one potential business area. For example, if you have to travel from India to France, you might as well also plan meetings in New York and finish it off at one go. This way, you can save thousands. By planning multiple meetings in the same city, you save on both traveling and staying costs. The basic tip is to get maximum work done in one single trip in order to economically use financial resources in the best possible manner. Of course, it is not always possible to club your trips because the schedule of different clients may not always match. The point is to try and schedule trips in such a manner as frequently as practicable.

#9. Understand taxes and use them to your benefit.
Taxes levied on income from any source are waived off to a specified extent when certain stipulated types of investments/expenditure made can be shown. Travel expenses are one of them. Though only a portion is eligible to be waived off, the sum still amounts to quite a lot. So, educating yourself about how these benefits can be reaped optimally can result in saving money in the long run. Similarly, a lot of things come with additional taxes while an individual is traveling. These include food at the airport (sometimes), items at the minibar, services like laundry in a hotel, etc. Though a person learns more about these from experience, it’s good to at least know the basics in theory.

#10. Look out for opportunities to make multiple bookings together.
Always remember that there are certain advantages and incentives of booking more than one ticket, especially in flights. It is always better to book tickets together in order to avail group discounts. This way, your company poses as a potential customer to the airline – a reason why they’ll always offer you certain privileges that they won’t offer other passengers. A company is a more respected entity with a higher brand value and credibility score than an individual in the eyes of airlines, hotels, and other business houses. A company is always more trustworthy than an individual. Also, in many ways, having your company as a client works in the favor of these houses when it comes to building their own brand value.

It’s very easy to save money while traveling for business. Think twice before you spend. It is a common observation that we tend to shell out a lot of extra cash when traveling primarily because there is no time to evaluate and understand how little things can contribute to unnecessary expenditure. Sometimes, we also opt for convenience by throwing money at a problem instead of racking our brains over tiny little details due to lack of time. These tips for saving money on business travel and a little prior planning will not only reduce your overall expenses but also help you to travel smarter in future. Believe it or not, a few smart choices in the beginning will lead to your paying fewer bills later on.

Ideas For Creative Business Financing

Whether you are already a business owner, or are starting up new, the first thing that you will think about is finance. There are many ways of going about getting the money you need.

That said, you must also take into consideration several factors before you get the money. Have a look at the various options you have in front of you, and compare it with your business plan and projected revenues. Realistically speaking, identify how you would be able to repay the money that you are borrowing.

Here are some ideas that will help you get the money you want.

Savings Account: Here we are talking about your own savings account. Before you dip into your kitty of savings, consider the following: How much savings have you got in that account? Are you dependent on that money for your day-to-day expenses? How confident are you that your business venture will succeed? Be realistic while you make these considerations. If the savings account is not something you depend upon, and you can afford to forget about the money you take from it should you incur a loss, then go ahead and take the money from it. The upside to this is that you are taking an interest free loan from yourself and saving quite a bit of money on that end. You can even repay this loan in variable installments, and not suffer penalties for it.

Family and Friends: This is also a good option for you to acquire funds for your business venture. Depending upon what you discuss with your friends and family members, you can choose the method of repayment, and also if you are liable to pay interest. The downside to this is that if you cannot repay the money back in the time that you promised, you stand to lose a good relative or friend.

Partners: Another way of generating funding is to take on partners in your business. This is again a matter of choice, and your partner must have the money and the inclination to invest.

Loans: This may not be a very creative idea, but some banks offer very interesting kinds of personal and business loans. It is worth a shot to go have a look at these options. You may just strike a gold mine, and find the perfect method of financing your new venture.

Sell the Junk: If you have any unused premises, or unused inventory lying around, or unused trademarks and licensing rights, it is a good idea to sell them to those who need them. This is a good method of recycling your own assets to create finance for your enterprise.

Sell Shares: Selling the shares of your company is a time-honored method of creating finances for your company. If you have a new company, you can do it. You can also do it, if you own a well-set company. You can also sell the shares to your employees. Talk to your CPA and get more details.

Advertise: This sounds silly, but sometimes an advertisement can also generate interested financers for your project. Putting word out there ensures that you generate interest from persons looking for a good investment opportunity. It also gives you a chance to advertise about your company along with it.

These few ideas should help you generate funds for your new venture. Good Luck!

An Overview of Commercial Financing for Business

Financing a business, keeping the economic perspective in mind, is very different from obtaining a loan for personal reasons. From an economic perspective, the expenses that have to be borne by a business can be broadly classified into fixed costs and variable costs. Fixed costs remain the same, regardless of the level of production. In other words, whether or not a business is in operation, the amount of fixed costs will remain the same. Expenditure on machinery and equipment is an example of fixed cost. Variable costs, on the other hand, change, depending on the level of production. Variable costs are directly related to the level of production. The cost of raw materials is an example of variable cost. Hence, from the point of view of an economist: Total Cost = Total Fixed Cost + Total Variable Cost

From the perspective of accounting, costs can be classified as implicit or explicit. Explicit costs are expenses which can be accounted for in monetary terms. Both, rent and wages paid, are explicit costs. On the other hand, a businessman who does not pay his wife for assisting him in day-to-day workings of a business, is said to incur implicit costs. Hence, for the purpose of accounting, total cost can be defined as: Total Cost = Explicit Cost + Implicit Cost

Commercial financing is needed, not only during the start-up phase, but also during the development, operating, and growth phase.

Pioneer Phase/Start-up Phase

Seed Capitalists: Seed capital is usually provided by friends and family members of an entrepreneur. This funding is necessary for activities like market research in order to test the feasibility of the business venture. The amount of seed capital is usually small.

Angel Investors: A business can also be funded during the start-up phase by angel investors. Angel investors are affluent people who finance a business for reasons best known to them. In other words, return on investment (ROI) may not be the sole criteria for funding. Angel investors may not demand participation rights in the business and they generally provide finances on a small scale.

Venture Capitalists: Venture capital is provided by institutional investors like banks, hedge funds and pension funds, who believe that the enterprise is capable of generating long term profits. Venture capitalists usually come into the picture after the business has established a few basic operations. Since venture capitalists invest other people’s money, they are very particular about the return on investment (ROI). Moreover, they demand participation rights in the form of preferred stock, and they may also be a part of the Board of Directors.

Development, Operating, and Growth Phase

Commercial Construction and Real Estate Financing: Banks, credit unions and other lending institutions provide commercial construction loans. US Small Business Administration loans (SBA loans) are also available for small entrepreneurial ventures. Depending on the needs of the business, an entrepreneur can avail of acquisition and development loans, bridge loans, mini-perm loans, take-out loans, joint venture loans and loans for purchasing real estate . These loans supplement loans provided by venture capitalists and angel investors.

Asset Sale Leaseback: Asset sale leaseback is common in case of real estate. In this case the entrepreneur sells an asset only to rent it back from the buyer. The main reason for asset sale leaseback is to remove the asset from the balance sheet of a company while retaining its use. Asset sale leaseback is undertaken for accounting and tax purposes.

Leasing Equipment: Generally buying equipment does not pose a problem even if the business does not have adequate finance. This is because the equipment functions as collateral against which a business borrows money for purchasing the same. However, start-ups prefer leasing equipment. The business is required to make monthly payments towards the rent of leased equipment. At the end of the leasing period start-ups have the choice of either buying the equipment or continue leasing it.

Invoice Factoring: Many a time, a business uses invoice factoring in order to convert its accounts receivables to cash so that it can meet its expenses in case it encounters delay in receiving payments from the customer for services rendered. In case of invoice factoring, the business sells its invoice to a third party and receives up to 80% of the value of the invoice. Once the customer pays for the services rendered, the business obtains the remaining value of the invoice, less the amount of fee charged by the third party.

Lines of Credit: Lines of credit are usually obtained by the business to meet its working capital requirements and avoid cash flow problems. A line of credit, unlike a loan, is not a lump sum amount on which the borrower is expected to pay interest. Using a line of credit is similar to using a credit card. Depending on the needs of the borrower, the amount of money required can be withdrawn from the sanctioned loan, and interest is paid only on the amount used/withdrawn, and not on the amount sanctioned.

These are some ways of financing a commercial business. In addition to these, entrepreneurs can obtain a number of other short-term and long-term loans. They can also make use of credit card advances in case of good credit history. Financing is a prerequisite for the establishment and the successful operation of any business. Regardless of whether the business is in the pioneer, growth, or mature phase, the importance of commercial financing never diminishes, although the amount of finance required may vary.

How to Raise Money for a Business?

The capital is one of the first things that needs to be taken into consideration when one is setting out on a business venture, and there are many different sources to obtain this capital. It is not necessary to stick to one particular source rigidly; even a combination of various different sources can be used.

Anyone who is wondering how to raise money for a restaurant, a start-up, an advertising agency, or any other small-scale venture should keep these methods in mind. Approaching the right people for it is vitally important for the success of the business, and if this is not catered to properly, it will be doomed from the very beginning.

Personal Savings

This is the most obvious source of money for starting a business. If you have saved up enough money over the years, go ahead and make use of it to serve the underlying purpose. You will not be answerable to anyone, and you will not have to worry about repaying someone. If you choose this option, ensure that you are not using all your savings though. Many people neglect this option because if they lose it, they will have nothing left to live on.

Venture Capitalists

This is the next most obvious source for your initiative. Venture capitalists are professional agencies who put in venture capital into an upcoming business. What they get in return is either its share, or a share of the profits, or pretty high interest rates. It may sound like exploitation, but this is one of the best ways to get money. Venture capitalists are always looking for new and innovative business ideas that are likely to succeed.

Angel Investors

These are a refined form of venture capitalists, but many people think that they mean the same thing. Angel investors are less demanding than venture capitalists and remain with your initiative in the long run. Usually, these are someone who you would know personally, and they are simply looking for ways to get a higher return on their investment. How companies raise money depends a lot on the nature of the business and the method of entrepreneurship adopted. Angel investors also help them by providing some guidance and mentoring.

Personal Borrowings

Here is a method that should be avoided as far as possible. You can borrow money from someone you know, namely your friends, family, or other people. The problem here is that once you mix business and personal relationships, things start to get a bit sour. This is a situation that needs to be handled with great tact and diplomacy, and not everyone can manage to do that. Still, this is a method that many people consider.

Bank Loans

Another answer is to approach a bank for a small loan. With banks, you will not be required to pay a very high interest rate, but you will need sufficient documentation about the business model of your initiative. Along with that, your credit history and financial stability will also be scrutinized, in order to find if you are worthy of getting a loan. Most people would love to get it, but are simply not eligible. This is especially true for someone looking to collect the money, without owning any fixed assets.

Advertising

Here is another answer, but one that requires a suitable amount of investment and more than a fair share of patience. If you can handle the advertising of your upcoming company well, you can get more than enough money to sustain it in the long run. There are some websites that also allow you to advertise your business plan and then suit you up with a matching investor. This is a slightly unreliable method for sure, but it works wonders if one can find the right match.

Other Options

One can approach some small-business investment companies, business development commissions, life insurance companies, or a money broker. The reliability of these options will not be very high, and their demand may be exorbitant, but if you have run out of all other options, then this is something that you will need to resort to.

You should act as early as possible, in order to get sufficient capital and business financing. There is a variety of sources available, and as long as you have a great and reliable plan, you will be able to procure capital. It is not all that difficult; all you need more than anything else is faith in yourself.