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- Jul 21
Basics of eCommerce Accounting
The eCommerce business model is not simple, it involves inventory management, understanding marketing spend, ever-changing digital market trends, basket sizes, understanding state taxes, amongst many other factors. eCommerce businesses need great accounting in order to understand how the business is doing financially, to make data-driven decisions, and to remain compliant with the IRS. Good accounting can help you grow your business, bad accounting could lead to failure of yo
- Jul 14
Accounts Payable and Accounts Receivable 101
As a business owner, you have probably heard the terms Accounts Payable (AP) and Accounts Receivable (AR). The definition of these terms in the accounting books can cause confusion. To keep it simple: accounts payables are obligations, money that your business owes, while accounts receivables is money that is owed to you. We will guide you through the basics of AR and AP: what they are, some examples, sample scenarios, and why they’re important. Accounts Payable Accounts Paya
- Jun 21
Common Bookkeeping Mistakes Small Business Owners Make
Bookkeeping is a significant part of any business enterprise. It is known for being a tedious task, mostly because business owners would rather spend their time in other areas of the business, but a necessary practice to keep your business successful. Here are five of the most common bookkeeping mistakes small business owners make when approaching their company’s finances: Mixing Business and Personal Bank Accounts. Not having separate bank accounts for personal and business
- Jun 9
How Hiring an Accountant Could Save Your Business
According to the Small Business Administration (SBA), 20% of businesses fail in the first year. In addition to this statistic, only about half of small businesses survive pass the five-year mark and only 1 out of 3 will get to the 10-year mark. Some of the reasons that small businesses fail are: bad business plan, lack of financing and/or financial mistakes, and rapid expansion. As a business owner, how much time do you have in daily business operations to actually do the thi
- May 12
Services Undertaken by Your Outsourced Accounting Firm
You are a busy business owner and accounting responsibilities can be cumbersome. Outsourcing accounting services is a way of freeing up your time to focus on growing your business. One of the main reasons small to mid-sized businesses outsource accounting functions is to save money. What services can you outsource through your accounting firm? We’ll share some of those services with you, services we provide at CPA by Choice. Accounting and Finance Consulting You don’t have to
- Mar 31
What to Know About Accounting When Starting a New Business
Accounting is the process of recording, maintaining, and communicating financial transactions pertaining to a business. Your small business depends on good accounting. Without accounting, you won’t be able to keep track of your business, you won’t know whether it is successful or not, and you will likely have difficulty when it’s time to file income taxes. You will also have a difficult time attaining bank loans and investors, because they often require detailed financial inf
- Feb 23
How to Clean Your Accounting Records with These Simple Steps
Running a business is not an easy task. You are managing inventory, employees, customers, marketing, partnerships… the list goes on and on and on. At CPA By Choice we recognize the time and effort that YOU put into your business, therefore we want to ensure your bookkeeping and accounting records are receiving the attention it needs. Business owners’ busy schedules often cause accounting records to be overlooked. Organized accounting records have a positive impact on your bus
- Feb 3
Ways to Survive a Cash Flow Crisis
Cash flow measures the net amount of cash and cash equivalents coming into and going out of a business over a set period of time. It indicates the financial health of your business by showing how much cash your business has on hand. If the pandemic has taught us anything, it is that as business owners, you may have the best-prepared plans and the unpredictable happens. As a result of the unpredictable, your business may take a hit that makes cash flow harder to come by. Here
- Dec 14, 2021
Do You Need a Business Credit Card?
As a small business owner, deciding on whether your company needs a credit card can be difficult. You may be concerned about interest payments, penalties, and annual fees, as well as the time and effort it takes to apply. However, for most businesses, having a company credit card can be a major asset to help operate and expand the business. When used properly, a small business card can help mitigate cash flow issues, keep personal and business finances separate, and boost a c
- Oct 21, 2021
Accounting Practices that will Add More Time Back to your Business
We hear it quite often from business owners that they wished they had more hours in the day, or that time is the one thing they wish they could buy. The following accounting practices will not only help you add more time back to your business but they will also result in cost reduction strategies, after all Time is Money. Separate Business and Personal Expenses A common mistake new business owners make is using their personal bank account to fund business needs. It is not unc
- Oct 15, 2021
5 Ways to Prevent Expense Fraud
The Association of Certified Fraud Examiners (ACFE) defines expense fraud as a fraudulent disbursement scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses. Common types of expense fraud include: Mischaracterized expenses: an employee submits a personal expense for reimbursement as a business expense. Overstated expenses: an employee submits a claim for a legitimate expense but increases the amount. An example of this can be
- Sep 25, 2021
Understanding and Analyzing Financial Statements
Financial statement analysis is the process of analyzing a company's financial statements for decision-making purposes. As a business owner, knowing how to analyze financial statements will allow you to assess your company’s strengths and weaknesses, and determine the overall financial position of the company. There are various techniques available to analyze financial statements. Ratio analysis is the most widely utilized technique. Ratio analysis measures the proportional r
- Sep 23, 2021
Budgeting & Forecasting for Small Businesses
A budget is a dynamic, detailed plan of operations used to outline a company’s anticipated revenue and expenses for an upcoming period of time. A financial forecast is an estimate of a company’s future performance based on current and historical information. A budget is a roadmap that outlines where management wants to take the business. A financial forecast tells you whether your company is reaching its goals and where it is heading. As a business owner, the success of your
- Aug 26, 2021
Tips on Effective Debt Management for Business Owners
Debt is a necessary part of running a business. A business loan, line of credit or a business credit card can help your company hire new employees, purchase inventory, purchase equipment, and finance growth. However, too much debt can stand in the way of your business objectives and become an unsustainable expense. As such, managing debt is vital to sustaining your business operations and credit rating. If you find yourself unexpectedly further in debt than you'd like, here a
- Aug 19, 2021
Management Accounting: How to Make Better Decisions and Improve Profitability
Management accounting is the process of identifying, measuring, analyzing, and interpreting accounting information to be used by business leaders in making informed operational decisions and achieve business goals. As a business owner, you are in a position where every decision you make could impact your company’s bottom line. As such, it is important to make educated decisions in order to drive your company’s financial performance. Here are 3 steps you can take to help you m
- Apr 27, 2021
Accountant vs Bookkeeper, What is the Difference?
Accountants and Bookkeepers are both professionals who provide financial support, they are both a foundation to ensure that you have the finances to keep your business running. It is important to know the difference between the two so that your business is meeting its accounting needs. Education and Training A person may become a bookkeeper with on-the-job training and without a formal college degree. Skills such as attention to detail, good communication skills, and accuracy
- Apr 27, 2021
Outsourcing Accounting
Outsourcing accounting services bring many benefits to business owners. According to The Outsourcing Institute, businesses choose to outsource to improve their core business focus, to avoid the risk and costs of hiring more employees, and to gain access to outside expertise that they could not afford otherwise. Outsourcing accounting can help your business in the following ways: 1. Reduce Labor Costs Significantly Outsourcing an accounting team is generally less costly than h
- Feb 18, 2021
Healthcare Financial Management - What’s in Store in 2021?
The changes for healthcare in 2020 were significant and many. As a CFO, if you’re feeling a bit exhausted by change, you are not alone. As we enter the New Year, what challenges will healthcare organizations face? 2021 Predictions for the healthcare industry The following three predictions were published recently by Brian Bogie, Director of Healthcare Industry Marketing at Sage Intacct. Cost control will be paramount in 2021, and Activity-Based Cost Accounting will be busines
- Jan 21, 2021
Revenue Recognition: An Introduction for Small Businesses
How much revenue did your business earn this month? That answer may vary depending on whether you have implemented the new revenue recognition standard or not. If you are looking for investors, a bank loan or even looking to sell your business, the way you record revenue needs to be in line with Generally Accepted Accounting Principles (GAAP) and the new Revenue Recognition Standard. In May 2014, the Financial Accounting Standards Board (FASB), issued Accounting Standards Cod
- Dec 15, 2020
Making a List and Checking It Twice: Everything You Need for a Successful Tax Day
At CPA by Choice we want you to be prepared for the 2021 tax season. Some things will differ from your prior return, for example in an effort to encourage Americans to donate money to charity during the coronavirus pandemic, the CARES Act enabled taxpayers to deduct up to $300 in monetary donations in 2020 – even if they take the standard deduction. There are other changes for the 2021 tax season, we will ensure that the credits, deductions, and contribution limits available