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One of the most important success factors of small businesses is the ability to generate revenue, and to do that, most businesses need to market their services and products to bring in new customers and sales.
The challenge for small business is how to make their marketing dollars work the hardest, and this requires careful tracking and measurement. Here’s one way to get started tracking your marketing spending so that you can find out what’s paying back the most.
Track your expenses by source or method
Once you have your list, it’s time to look to your accounting system. Create accounts or other types of tracking codes in your system to track expenses for each of these marketing methods. If you need our help, please feel free to reach out. The goal of this step is to be able to get all costs associated with each of these marketing methods so that you have a total cost over time by method. Don’t forget labor: if an employee spends three hours a week updating your social media accounts, this should be included in your costs. Determine the source of your sales To the extent you can, match the sales that come in with the marketing source or method. In other words, if a customer knows you from the Chamber and spends $500 with you, match the $500 revenue with the Chamber marketing source. Do this for every sale you can. If you don’t know or can’t attribute the sale to any one method, then code it to an Unknown tracking code or account. This step can be difficult, depending on your business type, especially if your customers are anonymous, as in retail or restaurant sales. However, every business can do better by asking “how did you find out about us?” to each new client that comes in and recording that answer. For online sales, you can use tracking apps such as Google Analytics to help you measure digital marketing methods. Do the best you can on this step and implement procedures to capture this information as accurately as possible for future sales. Analyze and adjust This is the fun part. Once you’ve done all the hard work, you should be able to match sales to costs and determine the volume of sales that are coming in for each marketing method. Let’s say you found out that you are getting no sales from your nonprofit board membership, the Huffington Post article, and social media. You now have some decisions to make. If you are doing these things solely for marketing, you could cut them out and focus on the remaining methods. It could also mean that you need to redo your social media strategy; it’s not working now, but another strategy might. Or just one article in HuffPost is not enough, but three articles could start paying off. At any rate, you have far more information than you did before you started, and now you can make smarter decisions about your marketing. If we can help you code and crunch all these numbers, please reach out any time.
With the changes to tax law, and specifically The Tax Cuts & Jobs Act, how are you affected? Check out our video below for more information.
For more videos and articles, check out our Resources page. Please contact us with any questions!
The information contained in the materials is for general information only. All information in the materials is provided with the understanding that the material contents shall not be used as financial, legal, accounting, tax, or other professional advice or services of any kind. As such, this video should not be used as a substitute for consultation with a financial, accounting, tax, legal professional or other competent adviser. The use of the information provided in this site does not establish any contractual or other form of professional engagement between Hart & Associates, TaxVid, and/or the viewer of the site or any of the materials.
User Permissions
Some companies have a need to limit certain functions to certain users. Most systems come with basic functional limitations, such as restricting Accounts Payable and Accounts Receivable functions. But what if you need more granular user permissions such as access to only purchase orders or a certain bank account? Mid-market systems like QuickBooks Enterprise provide those features. Multiple Companies and Consolidated Financial Statements Do you have multiple companies that are the “children” of a parent company? You might need consolidated financial statements and the ability to open multiple companies at the same time. Number of Customers and Vendors If your business is growing and the number of customers and vendors you do business with is regularly increasing, you may be in danger of reaching a list limit in QuickBooks Premier. Each system has their own list limits, and these limits can get complex quickly, so check with us if you have questions or concerns. File Size and Performance There may also be file size limits that you need to watch, especially if you have a high volume of transactions or multiple years of history in one file. You could also have performance issues. If you have a new PC and your accounting system is still running slowly, we can offer suggestions on how to improve your performance. Inventory Features If you need advanced inventory features, such as tracking inventory in multiple locations, using the FIFO method, and managing lots or serial numbers, you have options either to stay on a desktop-style system or move to the cloud. We can help you identify the best option for your situation – talk to us! Enhanced Customization Most mid-market accounting systems provide better customization such as additional custom fields, better reporting, and improved form design. Number of Simultaneous Users The final reason to switch to a larger accounting system is if you need more simultaneous users. QuickBooks Pro allows for up to three simultaneous users, QuickBooks Premier handles up to five, and QuickBooks Enterprise makes room for up to 30 simultaneous users. QuickBooks Online allows up to 25 simultaneous users. Check with us if you are curious about your system’s license limits. Outdated Versions At times, accounting system support is only offered for a limited time period. To ensure the security and safety of your data, make sure your current system is properly and effectively supported. Did any of these reasons resonate with you? If so, let us know so we can discuss your needs. 
Tax fraud is an increasing danger for all of us. Protect yourself through knowledge!
Today's tax scam tip: Phishing. Phishing is defined as: the fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers. Remember that the IRS will never initiate contact or request personally identifiable or private information via email. Neither will reputable financial institutions, such as banks or credit unions. If you receive such an email and have any question on it's legitimacy, contact your local IRS office or financial institution directly, using a phone number obtained through the IRS.gov or financial institution's website. Never use a phone number or click a link provided in the questionable email. For any questions regarding your tax situation or tax preparation needs, please give us a call or schedule a complimentary consultation. We're here to help! 
Tax fraud is an increasing danger for all of us. Protect yourself through knowledge!
Today's tax scam tip: Beware of phone calls from the IRS. The IRS communicates through written, snail-mail correspondence and will not phone you to demand an immediate payment. If you have questions or concerns related to written or phone communications purporting to be from the IRS, do the following:
For any questions regarding your tax situation or tax preparation needs, please give us a call or schedule a complimentary consultation. We're here to help!
Income Taxes
Everyone knows about the April 15th deadline to file your taxes. Some people file an extension and have until October 15th. However, we need to remember that the best estimate of your tax liability needs to be paid by April 15th even if an extension is granted. Failure to correctly estimate and pay income taxes leads to a penalty that is calculated by multiplying the number of days the tax is late by the effective interest rate. Paying Vendors If we’re slow to make our accounts payable payments, our vendors may tack on a penalty, but the larger consequence is the effect on our credit score. Business Goals It’s so easy to let internal deadlines slide, but they may be the most important of them all. To move your business forward, set goals with deadlines so that you can measure your results. Mastering Deadlines Here are a couple of tips to master your deadlines so you can avoid the above consequences:
While we can't help with all of your deadlines, we can help with those related to payroll, taxes and paying vendors. Please give us a call or submit a services request to see how we can be of help.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
Tax fraud is an increasing danger for all of us. Protect yourself through knowledge!
Today's tax scam tip: Beware of emails claiming to be from a tax preparer (even a name or company you recognize and use) that requests you respond and provide personal identity-related information. Such requests might be to confirm your social security number, bank account numbers, address, etc. If you receive such an email, do not directly respond to the email. A reputable tax firm will not request such email through channels such as non-secured, unencrypted email. Call your tax preparer directly to notify them you received such an email and delete the email. For any questions regarding your tax situation or tax preparation needs, please give us a call or schedule a complimentary consultation. We're here to help! If you are considering adding a partner or co-founder to your business, check out this interesting read:
Why You Don't Need a Co-Founder to Start Your Own Business |
AuthorSuccessfully meeting the challenges inherent to new and smaller businesses provides me with a special type of satisfaction. Archives
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