JADDE Financial Solutions, LLC

JADDE Financial Solutions, LLC

Accounting

Morganville, NJ 2,278 followers

Partnering in Your Fiscal Success

About us

JADDE Financial Solutions provides accounting services to allow you the peace of mind and freedom you desire to focus on your business. We use the latest cloud technologies to streamline the accounting process and create efficiency. We make sure you have the financial reports you need to run your business more profitably. We are certified in both QuickBooks and Xero accounting programs. We will help you determine the best fit for your company.

Website
http://jkdefeo@jaddefs.com
Industry
Accounting
Company size
2-10 employees
Headquarters
Morganville, NJ
Type
Self-Owned
Specialties
Bookkeeping, Job Costing, QuickBooks, Xero, Inventory, eCommerce, Distribution, and Manufacturing

Locations

Employees at JADDE Financial Solutions, LLC

Updates

  • Understanding Owner's Equity: What It Is and Why It Matters What is Owner's Equity? Owner's equity, also known as shareholders' equity or net assets, represents the portion of a company's assets that belong to its owners after deducting liabilities. In simpler terms, it's the amount of the business that the owners truly own outright, free from any debt obligations. The Balance Sheet Accounting Equation 1. Assets: These are the resources owned by the business, including cash, inventory, equipment, and property. 2. Liabilities: These are the debts and obligations owed by the business to creditors, suppliers, and lender 3. Owner's Equity: This is what's left over when you subtract liabilities from assets. It represents the owners' stake in the business. Why Owner's Equity Matters Understanding owner's equity is essential for several reasons: 1. Financial Health: Owner's equity provides insights into the financial health of a business 2. Investor Confidence: For investors, owner's equity serves as a key indicator of a company's financial strength and potential for growth. 3. Decision Making: Business owners use owner's equity to make strategic decisions, such as obtaining financing, reinvesting profits, or distributing dividends. Implications of Excessive Liabilities 1. Financial Risk: Excessive liabilities increase the financial risk for the business, as it may struggle to meet its debt obligations and cover operational expenses. 2. Liquidity Challenges: A high level of liabilities can strain the company's liquidity, making it difficult to access additional financing or invest in growth opportunities. 3. Creditworthiness Concerns: Lenders and creditors may view the business as a higher credit risk if liabilities outweigh assets, potentially leading to increased borrowing costs or difficulty securing credit. Addressing the Predicament 1. Reduce Expenses: Implement cost-cutting measures to lower expenses and improve cash flow. This may involve renegotiating contracts, optimizing operational processes, or eliminating non-essential expenditures. 2. Increase Revenue: Explore opportunities to boost revenue through sales growth, diversification of products or services, or entering new markets. 3. Debt Restructuring: Negotiate with creditors to restructure debt obligations, such as extending payment terms or consolidating loans. 4. Asset Optimization: Evaluate the company's asset base and consider selling underperforming or non-core assets to raise capital and reduce liabilities. JADDE Financial Solutions can develop a comprehensive strategy for addressing the financial challenges. Our expertise can provide valuable insights and guidance in navigating complex financial situations. If you would like us to assist in walking you through your financial and accounting options, we’d love to help! Let’s set up a time to chat here: https://loom.ly/lwiV3eM #smallbusiness #ownersequity #stayprofitable #financialsolutions

    Get in Touch with JADDE Today!

    Get in Touch with JADDE Today!

    calendly.com

  • Understanding and tracking key financial metrics is vital to making informed decisions and steering your business toward success. The Importance of Financial Metrics: Early Identification of Challenges: Monitoring key financial metrics enables entrepreneurs to identify potential challenges early on. Essential Financial Metrics for Small Businesses: What to measure? Revenue Growth: Calculate the percentage increase in revenue over specific periods. Consistent growth is a positive indicator of business health. Gross Profit Margin: Evaluate the percentage of revenue retained after deducting the cost of goods sold. A healthy gross profit margin ensures profitability. Profit and loss by income % Assess the proportion of revenue allocated to operating expenses. Monitoring this ratio helps control costs and maintain profitability. Cash Flow Forecast: Create projections to anticipate cash flow fluctuations. This KPI is crucial for ensuring ongoing operations and planning for future investments. Accounts Receivable Turnover: Measure the efficiency of your collection policies. A high turnover indicates effective management of accounts receivable. This is the one key area that can lead to cash flow issues if revenues are not collected in a timely manner. Inventory Turnover: Evaluate how quickly inventory is sold. Efficient turnover reduces holding costs and ensures optimal use of resources. Debt-to-Equity Ratio: Assess the proportion of debt relative to equity. A balanced ratio indicates a healthy financial structure. Customer Acquisition Cost (CAC): Calculate the cost of acquiring a new customer. Monitoring CAC ensures that marketing efforts align with revenue generation. Lifetime Value of a Customer (LTV): Determine the total revenue a customer is expected to generate over their entire relationship with your business. LTV helps in customer retention strategies. Net Promoter Score (NPS): Measure customer satisfaction and loyalty. A high NPS indicates a strong customer base likely to promote your business. Setting Up Tracking Mechanisms Utilize Financial Software: Invest in financial software to automate tracking processes. Many tools provide real-time updates and customizable dashboards for easy monitoring. Regularly Review Financial Statements: Conduct regular reviews of income statements, balance sheets, and cash flow statements to track changes and identify trends. Establish Clear Reporting Periods: Set specific reporting periods (weekly, monthly, quarterly) for tracking financial metrics. For small business owners, setting and tracking key financial metrics is a proactive approach to navigating the complexities of entrepreneurship. If you would like us to assist in walking you through your secure financial and accounting options, we’d love to help! Let’s set up a time to chat here: https://loom.ly/lwiV3eM #financialmetrics #smallbusiness #KPI's #knowyournumbers

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  • One place that entrepreneurs sometimes forget to look at is pricing. If your service is not priced right, you will not be profitable, no matter how much you increase sales. Determining the right pricing for services can be challenging, but there are several strategies entrepreneurs can employ to ensure they are charging appropriately and generating sufficient profit. Here are some guidelines and considerations: Start with Cost-Based Pricing • Calculate all costs associated with delivering the service, including direct costs (materials, labor) and indirect costs (overhead, administrative expenses). • Add a desired profit margin to cover business growth, risk, and a return on investment. • This method ensures that the price covers all expenses and provides a profit. • Remember to account for hidden costs when setting your pricing, taking into consideration all facets of your business such as marketing, customer support, and ongoing service enhancements. Use Profit Margin as a Guide • Aim for a profit margin that allows for business sustainability, growth, and reinvestment. • The desired profit margin can vary by industry, and you can google that information. Software subscriptions can be as high as 50%, supermarkets are typically 1-2%, as are liquor stores. Look at Value-Based Pricing Assess the value your service brings to clients. Consider the benefits, outcomes, and competitive advantages your service provides. • Are you experts in the industry? • What difference will your services make to the client and their profit margin? • Are you providing something unique? • Set prices based on the perceived value to the customer rather than just the cost of production. • This approach can result in higher prices if your service is perceived as highly valuable. • Understanding the perceived value of your service from the customer’s perspective can lead to customer satisfaction and loyalty. Review Regularly Regularly review and adjust your pricing strategy to account for changes in costs, market conditions, or the perceived value of your services. • Set a standard from the beginning when you create your pricing strategy. • Let clients know that each year your prices will increase and let them know the range of increase. Remember that the right pricing strategy can vary based on industry, target market, and the unique value proposition of your services. It’s essential to strike a balance between covering costs, staying competitive, and providing value to customers. Regularly reassess your pricing strategy to ensure it aligns with your business goals and market dynamics. If you would like us to assist in walking you through your secure financial and accounting options, we’d love to help! Let’s set up a time to chat here: https://loom.ly/lwiV3eM #smallbusiness #pricingstrategies #stayprofitable

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  • Financial literacy equips entrepreneurs with the knowledge to make strategic and informed decisions. Whether it’s assessing investment opportunities, managing cash flow, or setting pricing strategies, a solid understanding of financial concepts is indispensable. Effective Communication with Professionals: Entrepreneurs often collaborate with financial professionals, such as accountants or financial advisors. A foundational knowledge of financial terms and concepts enables effective communication, ensuring that entrepreneurs can actively participate in discussions about their business’s financial health. Networking and Mentorship Connect with your peers and join industry-specific networking groups to exchange insights and learn from the experiences of fellow entrepreneurs. Seek Mentorship: Establish mentorship relationships with experienced business leaders who can provide guidance on financial matters. Financial Planning Develop a comprehensive budget that aligns with your business goals and tracks income and expenses and implement strategies for effective cash flow management, ensuring a steady financial position. These are the statements you want to learn about and ask mentors: Income Statement: Also called the Profit and Loss Learn to interpret the P&L to understand revenue, expenses, and profitability. Balance Sheet: Familiarize yourself with balance sheets to gauge the financial health and stability of your business. Regular Financial Check-Ins Schedule regular reviews of your financial statements to identify trends, opportunities, and potential challenges. Utilize Financial Tools Accounting Software: Invest in user-friendly accounting software to streamline financial processes and gain real-time insights. Implement dashboards that provide a visual representation of key financial metrics for quick analysis. Encouraging a Financially Literate Team Once you feel comfortable with financial literacy you can share it with your team. Extend financial literacy training to your team, empowering them to understand the financial implications of their roles. Create Open Communication Encourage Questions: Foster an environment where employees feel comfortable asking financial-related questions, promoting a culture of continuous learning. Financial literacy is not just a skill; it’s a cornerstone of entrepreneurial success. By investing time in developing financial literacy, small business owners can confidently navigate the financial intricacies of their ventures, make informed decisions, and communicate effectively with financial professionals. If you have questions about your monthly accounting reports, need help validating your pricing decisions, or would like us to assist in walking you through your financial and accounting options, JADDE Financial Solutions would love to help! Let’s set up a time to chat here: https://loom.ly/lwiV3eM #smallbusiness #finacialiteracy #accounting #bookkeeping

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  • Securing Financial Data: Accounting Security Tips Businesses must take effective cybersecurity measures to ensure accounting security. Constantly monitoring new bookkeeping security technologies minimizes the risk of losing essential insights. Business owners must protect their data from external and internal threats. The organization may suffer if cybercriminals publish information regarding income, loans, tax, clients’ data, and banking insights. The Importance of Protecting Accounting Information • Security of client data: Your clients trust you as professionals. The last thing you want is to experience a leak of important information because a hacker could use it for criminal activities. • Protection of company data: Not only is it expensive to combat cybercrime, but the detection period for a violation is very long, making it difficult to eliminate negative consequences. • Reputation concerns: If word gets out that your organization has suffered a data breach, it could negatively impact your reputation and discourage customers from doing business with you. Some Tips for Protecting Your Financial Data Choose strong and unique passwords • It must contain a combination of numbers and letters • Stop using the same password for multiple accounts • Never share your password via email or messages • Update passwords at least once every three months Ensure the physical security of your gadgets Check if the computers that have access to your accounting system are protected. If you prefer laptops, buy or use a particular laptop lock. We do not recommend leaving gadgets with access to important economic data in the car’s back seat. Go to the cloud Despite the active implementation of innovative technologies, every fifth bookkeeper still uses paper media, which increases the risk of data loss. Cloud technology doesn’t just make bookkeeping teams more efficient and scalable. Moving to the cloud means that insights are displayed on secure servers instead of storing accounting data on your local computer, where it can be stolen. Train employees in the basics of cybersecurity Training employees in the basics of information protection is necessary to minimize the risk of cyber-attacks. Main Types of Cyber Threats • Phishing: This threat occurs when you receive an email from someone pretending to be a legitimate individual or company asking you to click on a link and take a specific action. • Malware: This is the most common type of cyber-attack. Here, malware installed on your computer controls it and can destroy the system and copy sensitive information. • Ransomware: This is a type of malware that locks a system or specific data and threatens to delete information until the owner pays a specified amount. If you would like us to assist in walking you through your secure financial and accounting options, we’d love to help! Let’s set up a time to chat here: https://loom.ly/lwiV3eM #securitybreach #accounting #bookkeeping #financialsecurity

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  • The primary tactic that any entrepreneur must master to achieve long-term economic success is proper money control. Cash flow management for small businesses is considered one of the most challenging activities. The Definition of Cash Flow Management Cash flow management for small business involves tracking, analyzing, and optimizing the movement of funds. It ensures your business has sufficient assets to meet its financial obligations, including paying bills, wages, and repaying loans. Capital inflows are funds that go into a business, including sales proceeds, interest on investments, etc. Capital outflows are assets that leave an enterprise, such as expenditures for maintaining and hosting a site, renting, and purchasing machines. The Significance of Cash Flow in Business Cash is the lifeblood of any firm. If you do not have enough assets to pay the expenditures, it will be problematic for your business to survive. The benefits of cash flow handling: • Inventory control: Proper cash flow management can reduce inventory turnover, which shows how quickly an enterprise sells goods. • Improving receivables: Suppliers often ship goods on credit, with terms ranging from 1 to 3 months, sometimes even longer. Cash flow handling lets business owners implement control algorithms, ensuring faster debt collection from counterparties. • Managing accounts payable: Enterprises must analyze their ability to meet debt liabilities and plan their costs. Working with cash movement lets you maintain the firm’s liquidity, keeping reserves for expansion. Don’t delay sending invoices Cash flow matters because it distinguishes between the payment requests you’ve sent and the bills the customer paid. A $15,000 bill means little if you haven’t received capital to cover spending. Therefore, do not put off sending invoices for a long time. Suggest early payment discounts Early payment discounts can be an excellent incentive for counterparties to pay bills immediately. Such an incentive is beneficial for both parties. This discount option enables companies to recoup up to 2% of their expenses. Work with borrowed capital We recommend addressing cash movement issues before they start. If your firm is operating normally or is in its early phases, this is the optimal moment to take the funds. Launching a business line of credit with an exact record may prevent the risk of being rejected in the future. Financial experts advise tracking incoming and outgoing cash flows at least once a month, but doing this weekly or daily is better. With correct cash flow handling, you can track money movement from various sources and determine if funds are being utilized according to your budget. If you would like us to assist in walking you through your financial and accounting options, we’d love to help! Let’s set up a time to chat here: https://loom.ly/lwiV3eM #cashflow #smallbusiness

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  • International Women's Day serves as a poignant reminder of the strides women have made and the challenges still ahead. Today, let's honor the incredible women who have paved the way for progress, success and equality. May their light shine brightly and guide others, and may they continue to break barriers and set new standards for excellence! Happy International Women's Day! We at JADDE are so pleased to be working with such an incredible group of women! #internationalwomensday2024 #women #womanpowerment #womanownedbusiness #womenequality #IWD2024 #iwd2024womenleadingtheway

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