As a small business owner, regardless of the product or service you offer, your time is the most precious commodity you have. Since you only have a limited number of hours in each day, managing the amount of time you spend on various projects is critical. You want to make certain that these hours are as productive as possible, meaning they generate the greatest level of income possible. What you do not want to do is to spend hundreds of hours during the year on bookkeeping, taxes and keeping up with your corporate filings when you can have an expert take care of this for you.
If you are interested in learning how to leverage a business manager for improved small business time management, to reduce small business costs, and to protect your personal assets, read on.
According to the Internal Revenue Service, you can anticipate spending over one hundred hours doing the recordkeeping for your company each year. In addition, you can expect to spend an additional 30 hours learning what forms you need to file, another 65 hours actually preparing the forms, and another 5 hours reviewing and actually filing your returns.
What is your time worth?
Since you are not able to increase the number of hours in each day, this is most likely not the best use of your time. A business manager is already knowledgeable about small business accounting, and will be able to do this amount of work in a fraction of the time, for a fraction of the cost. Don ́t make a costly management mistake. You are not a bookkeeper or accountant, so why should you try to become one. Let someone else do what you have to do, so you can spend your time on what you love to do.
Just like any other small business owner, you are looking to reduce costs anywhere you can. Before you start looking at hiring an internal bookkeeper and tax accountant, take a look at a business management company.
They can assist you in streamlining various portions of your business and will cost you much less than you would have ever thought. In addition, you will receive the expertise of a professional, for what it would cost you to have a part time bookkeeper. Remember, in the end, it really is about what you get to keep.
Your business manager is able to keep you informed about various filing deadlines, as well as giving you suggestions for managing and even reducing your various office expenses. Don ́t go it alone, have a partner who is looking to you as a client for the long term, not just a part time job until something better comes along.
Do you remember the day you started your company? Not the day you opened for business, but the day you filed your corporation or LLC. You may have formed your corporation online, and went to the IRS website to get your EIN Number, but did you do everything you needed to do to actually BE a corporation? If you incorporate online, you use a document filing service that will fill out the forms you tell them, but they will not let you know what else you need to do.
For example, does your LLC have an operating agreement? If not, your LLC is not valid. Document filing services will not remind you that you have ongoing filing requirements. Not fulfilling these requirements means that you are can lose your status as a corporation, which can open you up to personal liability, and subject your personal assets to civil judgment along with filing penalties and interest. Your business manager or corporation service company can make sure all of your filings are complete and on time. They can also make suggestions that can reduce your tax liability.
You cannot be in control of a business if you don’t know what is going on. With bad numbers, or no numbers, a company is flying blind, and it happens all of the time. Why? For one thing, it is a common — and disastrous misconception that an outside accounting firm hired primarily to do the taxes will keep watch over the business. In reality, that is the job of the chief financial officer, one of the many hats an entrepreneur has to wear until a real one is hired. In the mean time there are professionals who specialize in working with businesses just like yours. They know what the requirements are, and can help you satisfy them all, while not costing you an arm and a leg. Small businesses are the engine that makes this country great, so spend your time and money wisely. Ask a professional for assistance with the aspects of your business that do not make you money, so you can focus on what does.
My Professional CFO, LLC, is a Business Management firm providing the highest level of service in three key areas of importance to Independent Contractor Physicians, Small Business Owners and Entrepreneurs. We specialize in Corporation filings and ongoing Compliance, Accounting and Payroll, and Investment Management. Our professionals will assist you in forming the appropriate type of company for your situation and work with you to make sure your company remains compliant.
We provide ongoing Accounting and Payroll services to make certain all bills are paid and necessary tax forms and withholding payments are made in a timely manner, as well as the set up and management of your retirement accounts. We are not simply a document filing service we are here to help you with the part of the business that you have to do so you can focus on what you love to do.
Alan Conner, MBA – President of My Professional CFO, LLC has nearly 2 decades of experience working with professionals and small business during both the start-up and ongoing management. He has written countless business plans and has managed assets for both institutions and high net worth clients.