Sendin Accounting Services

All roads lead to CASH. This is a screenshot of the labor burden I have created for each field employee for a client. It's only part of the table I created, since Worker's Comp., Health Insurance, etc. are also included. When we analyze pricing of a business, we need to understand what are our costs. Our cost for each employee is not simply the hourly wage we pay them, but their hourly wage PLUS the payroll tax/benefits they receive. How does this make a difference? If we forget to include these costs, known as labor burden, then we will misjudge the mark-up we actually put in place. This will lead to not hitting the profit goal we set for the new year / season. When the business needs to grow and invest in another employee or a new vehicle, then we'll find we don't have the cash flow ready for the move. All roads lead to cash. By performing a pricing analysis like this, we stay proactive on building the cash in the bank that we need not only now, but also in the future years. #CashFlowManagement #ProfitPlanning #DebtReduction #FinancialHealth #BusinessFinanceTips #AccountingAdvice #CashFlowMatters #DebtVsProfit #TaxPlanning #FinancialStrategy #KnowYourNumbers #SmallBusinessSuccess #AccountingForGrowth

Are you expecting overhead expenses to increase in the upcoming year? Maybe employees will receive a raise across the board? If so, then it's worthwhile to plan whether sales can support the increase in expense. Right now, I am helping a landscaping client plan for the 2025 season. We have set up a Forecasted P&L, to watch what effect certain decisions have on the company's profit for the next year. Employee raises are planned, and they are wondering whether any additional mark-up is needed on their material sales, as well as whether a rate increase is necessary. We're on the tail-end of wrapping it up, but most of the data is in place. What I found last year was the client was not accounting for profit to be reserved for future CapEx, such as improvements on the office/shop space, and the CapEx of replacing the existing vehicle fleet when it comes time to do so. So while we would be showing a profit this next year if we didn't account for these items, we want to make sure we produce enough cash each year to prepare when these future events take place. Failing to prepare is preparing to fail. Of course, anything can happen in the new year, and if it does, we will adjust our plan. But having a plan in place on what pricing should be, what limits should we hold our expenses to, that is critical. #CashFlowManagement #ProfitPlanning #DebtReduction #FinancialHealth #BusinessFinanceTips #AccountingAdvice #CashFlowMatters

One area where bookkeeping becomes complex is with the purchase of vehicles, equipment, or property such as buildings or land. These are all known as fixed assets. If purchasing vehicles, equipment, or property is a common transaction in your business, you absolutely want to make sure you have a strong bookkeeper / accountant in your corner. But, the most important task in entering these purchases is the purchase document / receipt. It should list the date of the purchase, purchase price, and a description of the asset. We want this information contained on the official purchase document to defend our bookkeeping records in the event of an audit. Once we've used the purchase document to code the asset's purchase into the accounting file, then we store the document in your business's online folder storage, and it is named under a convention such as "ASSET NAME - [PURCHASE / SALE] - [COST] - [DATE OF TRANSACTION]". Therefore, this goes to show that the bookkeeping can be more complex than simply recognizing transactions as income and expense transactions. #FixedAssets #BusinessBookkeeping #AccountingTips #AssetManagement #AuditPreparation #BookkeepingBasics #FinancialRecords #AssetTracking #BusinessAccounting #ComplianceReady #TaxPreparation #BusinessFinance #SmallBusinessTips

Making sure you're prepared for tax filing is not a simple task as a business. The larger you are, the more time and complication involved. It's important to be organized in this process to make sure nothing gets missed in your tax filing. Here's how year-end preparation goes: #1 - Confirm the bank and credit card accounts are reconciled through December 31st. #2 - Verify Accounts Receivable is accurate (ensuring no negative values exist) #3 - Verify Accounts Payable is accurate (reviewing each vendor's open balance) #4 - Confirm documents are stored for Fixed Asset purchases or disposals #5 - Verify loan balances match (to the balance listed on their statements) #6 - Adjust the payroll gross wages and payroll tax expenses to the payroll filings #7 - Organize relevant documents for the tax accountant, including: - Statements dated 12/31 for all bank accounts - Statements containing 12/31 for all Credit Card Accounts  - Invoices/Receipts for All Fixed Asset Purchases - Loan Statements showing balance as of 12/31 - Sales Tax filings (if applicable) - Payroll Journal Summary Report showing all paychecks processed, and totals for the year. - 941 (all quarters), 943, 940, all W-2s, W-3 - State Unemployment filings (all quarters), and State Withholding filings (all quarters). - Local Payroll Tax Filings (if applicable, all quarters) - 1099s Delivered to Vendors / 1096 - 1099s or 1098s Received. This is a process we perform for our clients to get them prepped and ready for taxes. #TaxPreparation #YearEndChecklist #TaxFilingTips #SmallBusinessTax #FinancialOrganization #BusinessAccounting #TaxCompliance #TaxSeasonReady #BookkeepingBasics #TaxDocuments #OrganizedFinance #AccountingTips #PrepareForTaxes

Organized documents is not an exciting function of any business, but it is necessary. Audits can be scary when the documents are not on hand to defend the numbers sitting in your Quickbooks file or on your Balance Sheet statement. To avoid this, a business must have an organized document filing system. This is a resource to get from your accountant. It helps ensure that all the documents the IRS will need are stored in the correct place and they are easy to retrieve. This is a key service a bookkeeper or accountant offers. Take our document filing system as an example: 1. [Tax Year, e.g. 2024] 2. Financial Statements 3. Correspondence 4. Permanent File Let's focus on the Tax Year folders. Each Tax Year folder includes all the documents that defend the numbers in your accounting: 1. Bank Statements 2. Credit Card Statements 3. Payroll Tax Filings & Reports 4. Income Tax Filings & Payment Records 5. Loan Statements 6. Sales Tax Filings & Payment Records 7. Fixed Asset Purchases & Sales 8. Insurance Policies As you can see, a bookkeeping service should be much more than just punching in transactions! It needs to protect you all-around to keep you in compliance with the law. #OrganizedFinances #AuditPreparation #DocumentManagement #ComplianceMatters #BusinessFinanceTips #BookkeepingEssentials #StayCompliant #TaxReady #SmallBusinessFinance #AccountingAdvice #FinancialWellness #IRSCompliance

Start Managing Your Business Finances with These Simple Steps Managing your business’s finances is like learning a new language — it takes time and consistency. Start with the basics: track labor hours, material costs, and profit margins on each job. With consistent effort, you’ll gain a clearer understanding of where your money is going and where you can improve. Set aside the first hour of your day to manage your finances. Whether it's reviewing last month’s budget or updating current expenses, these small steps will lead to big improvements in your cash flow. Need help? I’m here to guide you through it. To learn more about cash flow, check out this article here: https://lnkd.in/gMem595y #CashFlowManagement #SmallBusinessGrowth #BusinessFinance #FinancialPlanning #ProfitabilityMatters

Don’t Overspend on Overhead – Here’s How to Stay on Track You could be hitting your profit margin goals, but if you’re overspending on overhead, your business may still struggle with cash flow. Spending discipline is key. One effective method is setting a budget based on last month’s income and ensuring your spending stays within those limits. By setting clear spending goals each month, you can make sure you’re not eating into your profits unnecessarily. Tip: Add up your expected monthly expenses and compare it to your projected revenue. Make adjustments as needed to stay within your limits and avoid financial strain. To learn more about cash flow, check out this article here: https://lnkd.in/gMem595y #CostControl #BusinessStrategy #OverheadManagement #FinancialSuccess #SmallBusinessTips

Take Action – How to Start Fixing Cash Flow Issues If you’ve seen our previous post about cash flow issues, we’ve discussed the importance of measuring key metrics. If your business is experiencing a cash flow squeeze, the most crucial step you can take is to start tracking your direct costs. Make it your top priority to monitor labor hours, material costs, equipment rentals, and any other expenses for each job. Once you have this data, you’ll be able to make informed decisions and adjust spending where necessary to improve your cash flow. Remember, no accountant can help you unless you have this information available — so start today. This isn’t just about fixing short-term cash flow issues; it’s about setting your business up for long-term financial success. Prioritize tracking and managing your numbers, and you’ll begin to see the difference in your cash flow. To learn more about the key metrics you should start measuring today to overcome cash flow challenges, check out the full article here! https://lnkd.in/gvVG5QUr #FixYourCashFlow #BusinessStrategy #FinancialPlanning #TakeActionNow #BusinessSuccess

While we'd love to say there is a method to relieving all stress when it comes to business finance, the reality is you will experience two main stressors: 1. The stress of not-knowing, and 2. The stress of awareness The stress of not-knowing comes from ignoring the numbers, and avoiding them at all costs. When we don't know what's happening, stress will build. There's no end in sight with this stress. The solution doesn't come unless you address the problem head-on, which involves reviewing the financial statements, the bank balances, and your profit margins in business. Be aware that while this is the solution, this is when the second stress hits, which is the stress of awareness. It is inevitable to experience. See the numbers will throw you into an emotional roller coaster, and the best method to managing it is to expect it and know that stress is inevitable, and that the stress of awareness is the better option than ignoring it altogether. Keep in mind that stress of awareness is at its greatest when you take a lot of time away from the numbers. But with repeated reports, and sitting down to review them weekly and monthly, that stress almost disappears. So the lesson is to tackle this issue head-on. There's no way around it. Be prepared for the mental struggle, but know that it's at its greatest in the beginning, and dissipates the more often you do a financial review. #business #accounting #bookkeeping #finance

Why Tracking Your Profit Margin is Key Your gross profit margin is the heart of your business’s financial health. If you're not tracking it, you might be missing out on critical insights. For every job you complete, subtract your total costs (labor, materials, rentals) from the amount your customer paid. The result? Your profit margin. To stay financially strong, aim for a 55-70% profit margin on each job. This may sound ambitious, but it’s what’s needed to sustain and grow your business. Even small errors in tracking can hurt your margins over time, so don’t leave this to chance — track every job’s costs and revenue. To read more about this topic, check out our article here: https://lnkd.in/gMem595y Ready to see better margins? Start tracking today! #ProfitMargins #BusinessFinance #SmallBusinessGrowth #FinancialSuccess #Entrepreneurship