Neway Financial Management

I'd rather do _______________ than do my own bookkeeping.

Starting a new business? Congrats! 🥳 It's an exciting time, but also an important time to be checking all the proper boxes. The legal requirements for starting a business are going to vary by state, so search online for your state’s specific rules. Generally speaking, you’ll need to: ✅ Choose a business entity ✅ Choose a business name ✅ Check to see if that name is available in your state ✅ Register your business name with your state ✅ Register for a federal EIN* (Employer Identification Number) ✅ Open a business bank account (you’ll need an EIN to do this, plus it will come in handy for paying all of those registration fees) ✅ Check into any state-mandated business licenses or permits required for your type of business *Note that not every business needs an EIN. If you don’t have employees, many sole proprietors and single-member LLCs aren’t required to get one. But they are free and it provides for easier scalability down the road. All of this will take some time and patience. Be prepared to fill out multiple online forms and be sure to save all of your registration documents in a safe place. Fortunately, most of it can be done online these days.

No matter how far around the block customers are waiting, in business, only one line counts. The bottom one. That's why controlling costs is critical. Getting a grip on the costs of doing business brings you both short- and long-term benefits. “Cost controls” generally mean saving money (who doesn’t like that?) and laying the foundation for greater efficiency and profitability in the future. Which cost controls are especially helpful for your business?

Business owners and entrepreneurs are risk-takers by nature. But are you holding back to the point where you're stunting your growth? We can relate -- we've learned a few things over the years about risk and reward. One "big picture" concept you can use to guide your risk-taking decisions and still see large returns: Invest in your education. The wisest entrepreneurs read about the successes/failures of others and plan accordingly. Read anything interesting lately? Share it in the comments.

The longer you avoid getting around to balancing your company's books, the hotter the water's gonna get when you do finally decide to jump in. The good news is you don't have to do it alone. You can bring in a trusted accounting professional to help shoulder that burden and start steering your financials back in the right direction. Thumbs up if you wish someone else could do the books for you.

Bookkeeping cleanup usually becomes necessary for two main reasons: error and neglect. See how you do on the following little quiz: 🛑 Do you have expenses that have been incorrectly entered in QuickBooks? 🛑 Do you have expenses or income that hasn’t been tracked at all? 🛑 Has an employee ever misclassified an expense? 🛑 Ever forget to record a transaction? 🛑 Have your business books been reconciled at least on a monthly basis? 🛑 Do you audit your financial statements regularly to make sure everything that needs to be recorded, is being recorded? Whatever your reasons, you might be realizing right now that you’re sitting on a financial mess. Are you having a hard time getting an accurate picture of your finances?

Clutter and disorganized financial documents bring all kinds of stress. We've got a few simple steps to help you get your financial world in order: 🗄️EVERYTHING HAS A PLACE - Make sure all of your documents have a "home." Wherever you see receipts and bills piling up, well, that's a good place to set up a "home financial center." 🚮KEEP OR TOSS? - Determine what to keep and what to throw away. Keep: medical expenses, insurance policies, mortgage bills, warranties, investment records, tax-deductible receipts, tax returns Toss: grocery receipts, credit card slips for non-tax deductible items, ATM receipts you've already reconciled 📄SORT YOUR PAPERS - Use these 4 categories: - bills - insurance - bank & brokerage statements - other important documents 🔄UPKEEP - Spend 5-10 min/day (or 30 min/week) maintaining your files. Open your mail near the trash bin. Circle the due date for bills and file them in the proper order. Then file what needs to be kept.

Here's a "big picture" concept that will bring large returns: Investing in sales and marketing automation. Marketing is the key to growing your business. And, automation is a way to run your company while you work on growing your company ... in a systematic, "hands-free" sort of way. Which marketing/sales tasks have you successfully automated in your business? Or how has automating some of those processes been helpful?

When you're interacting directly with clients, can you explain what you offer in 10 words or fewer? Perhaps 20? If not, it's time to work with your team to craft a concise elevator pitch. When you have this ready, you can clearly present your value proposition when the opportunity arises. And then online, prep straightforward and readable content. Make sure your website or digital platforms have clear descriptions, including upfront pricing. 👨💻 Have you managed the 10 words or fewer sales pitch for your business? If so, share below.

Do you have a problem finding someone who knows your business well enough to provide informed financial support? You likely need both a bookkeeper and an accountant to cross this bridge. 📗Bookkeepers …can play a crucial role in understanding the narrative behind the numbers. When they’re familiar with day-to-day operations (interacting with clients, knowing how the business operates, etc.), their ability to know what questions to ask and where to look for data provides the context necessary for the accountants asking the follow-up questions. 📊Accountants …are becoming more involved in the strategic decision-making you were after to begin with. Data analytics, predictive modeling, financial optimization – all the fun stuff. Do you have the right financial support for your business? Thumbs up if you do. If not, let's talk about options.