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benefits start-up can redeem from accounting

Benefits Startups Can Redeem in Accounting & Bookkeeping

What are the benefits startups can redeem in accounting? 

Warren Buffet once said, “Accounting is the language of business.” 

Now suppose Mr. XYZ starts a company. He has the funds to run his startup. Also, a robust business plan with sound research and strategy is done. But, he is not aware of the language of business. In simple words, he is unaware of the benefits accounting can redeem. To our surprise, several entrepreneurs and business owners like Mr. XYZ. Around 60% of small-business owners feel they are not knowledgeable about accounting and finance. 

What is accounting?

A company needs to keep track of all the expenses and income. In accounting, you need to maintain records of all financial transactions. Eventually, it leads to sound cash flow management. Accounting starts with drafting a strategic budget. Secondly, you develop a bookkeeping system. Then, you create a trustworthy payment gateway. After which, you set up a payroll system.

Last but not least, you prepare financial statements. It shows an accurate picture of your business’s financial health. Accounting holds much more than the before stated. Therefore, we are unfolding the benefits that accounting has in store for startups. 

Free Woman in Black Tank Top Writing on White Paper Stock Photo

Why is accounting vital for your startup? 

1. Bookkeeping

According to Wasp Barcode, around 21% of SMB owners admit not knowing enough about bookkeeping. But you must know bookkeeping leads to better and informed financial forecasting of a company. As a result, you can strategically draft your business plans. Secondly, you can access your business’s accurate accounts and cash flow. Eventually, this helps in receiving payment timely. Thirdly, the tedious nature of bookkeeping increases the chance of higher human errors. So many entrepreneurs have started looking to outsource their bookkeeping to experts. 

Outsourcing your bookkeeping will lead to secure & reliable financial health. They also take care of your monotonous task of bank reconciliation. Since monthly reconciliation keeps your books clean and brings countless benefits, maintain a clean general ledger and prepare accurate financial statements for your business. Lastly, an outsourcing accounting firm will provide unlimited consultations.

2. Payroll System

You need to set up a payroll system to pay your staff on time. You often miss the IRS deadlines and become unable to pay on time. It can lead to low morale and legal difficulties. That’s why you may require a payroll service provider. You outsource your payroll system to a payroll service provider. 

You can get the best payroll solution that fits your startup. Your payroll checks are printed on time. Additionally, a report of employees’ vacation, sick days, new hires, etc., is always ready. You don’t need to worry about the Free IRS and State tax reporting. Lastly, you get access to reports that the government agencies always require. A payroll service provider eases things for you. As a result, you spare more time for your primary operation. 

3. Cashflow Management

Cashflow management is one of the main benefits of accounting. While adequately maintaining books, you are also paving the way to positive cash flow. On the contrary, if books are not maintained accurately, it leads to a cash crisis. Due to the crisis, entrepreneurs shake hands with a cash management service provider. 

cashflow manager gains a depth of knowledge of your cash flow. They build an accurate cash flow projection. Plus, they provide cash collection acceleration techniques. They give the best-proven effective collection and payment policies as well. Finally, yet importantly, they help you get the maximum rate of return on your idle cash. 

4. QuickBooks

By now, you have read enough about outsourcing various services. But what’s that an accounting outsourcing firm possesses but a startup doesn’t. It’s nothing but accounting software. The cost of installing and updating accounting software is huge. Therefore, startups and small business owners outsource accounting and bookkeeping. There is various accounting software like- QuickBooks, FreshBooks, Xero, etc. 

QuickBooks is the ideal business accounting software for small to mid-sized business owners. Primarily, it saves time on bookkeeping and paperwork by automating the tasks. Secondly, it generate vital financial reports. Thirdly, QuickBooks can be tailored as per your startup requirement. Lastly, a virtual accounting firm integrated with QuickBooks provides QuickBooks Training

If you are still looking for more reasons, click here to know why you must choose QuickBooks.


In a startup’s budding days, owners must face a host of problems. We at SKB Accounting help you kickstart and redeem the enormous benefits of accounting. The most significant benefit of shaking hands with us is that our estimates grow only with your startup’s growth. So, schedule a call with us now and get relief from the accounting stress. 


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5 Best Software Salon

5 Must have best Software Salon

Must-Have Salon Software to Excel your Salon

Salon owners, do you consider your salon a small business? If yes, you should do everything a small business does. It begins with creating a salon business plan. It involves researching local laws, regulations, and ways to make your salon stand out. Also, it requires a solid client base and so on. However, the whole task could get tedious.

Moreover, it costs your time to be spent on providing services and developing loyal clients. To alleviate the process, a little salon is best. According to a report, over half of the small businesses (53%) use a software solution. 


Gone are the days when the salon manager had to manage appointment registers. With modernization, everything comes at the touch/click of a button. Thus, salon software comes to play a vital role. Primarily with the salon software, scheduling appointments becomes easy. Secondly, it helps in efficient inventory management (product stock). With the growing salon, the number of employees also rises. Thus tracking and managing employee performance becomes a smooth process.

Moreover, it automatically generates a client database for you. Fourthly, it manages the cash flow of your business with swift payment processing. As a result, you get the chance to grow your business and move towards wealth. Lastly, automated loyalty programs add stars to your salon.


So now you might start questing for the best software. The salon software reviews on the app or website are not 100% reliable. Therefore we have compiled with 5 best salon software: 

  1. Square Appointments 

Does your salon require an affordable appointment scheduler, a minimalistic design, or a full-blown POS system? 

Then your answer lies in this salon software- Square Appointments. The appointment scheduler works best for booth renters and individual stylists. Also, it integrates with all marketing and business tools from Square. Maybe right now, you wish to get an appointment scheduler only. But later, you can add Square’s professional POS unit, payroll tool, the Square marketing suite, and even build a website and online store. 

  1. GlossGenius

Do you know an all-in-one salon software without technical complexity and boring design now exists?

You heard it right GlossGenius is an all-in-one appointment, payment, and marketing app for independent salons in the USA. The software provides support to both individuals and salons with teams. With this beautifully designed app, your business breathes exceptional beauty. Eventually, it gives a high-end client experience. It provides easy-to-use email and SMS marketing along with advanced business reporting. Plus, it’s affordable, transparent, pricing, and offers a free 14-day trial.

  1. Mangomint

Are you a growing salon having 5+ staff? 

Then the salon software- Mangomint is just for you. It is one of the most well-designed platforms. But, it also provides smart automation, which saves your time invested in managing appointments and business operations. Mangomint features are inclusive of calendar scheduling, online booking, POS, inventory, reporting, etc. 

Moreover, with mangomint you can integrate with your favorite marketing and business systems. Mangomint Pay card processing is fully integrated with the software, and it offers the easiest way to accept all major credit cards with straightforward flat rates.

  1. Fresha 

Fresha is a 100% subscription-free salon software. It’s a widely popular salon software used across 120 nations. Around 50 000 beauty businesses and 250 000 stylists & therapists are using the salon software as there are no limits on the times of usage of the trial period limits. 

Its easy-to-use interface relieves the stress of a non-technical savvy. It’s best to be an individual stylist or salon on a tight budget as it’s subscription-free. With Fresha marketplace, you need to pay only a 20% fee for the first appointment as a new client. Moreover, the marketplace widens the marketplace and clients for you.

  1. Vargo 

Vargo is an all-in-one salon software that doesn’t pierce a hole in your pockets. It is the best fit for most small to medium size salons. The software pairs up integrated payments, full payroll support, native booking & online store integration with your website. It provides a client marketplace and great salon marketing support.

You get some advanced features that are difficult to find in other apps. For instance, live video streaming, subscription payments, and agency design services. Plus, a custom mobile app will is waiting for your salon!



Automation and software have been fruitful for all businesses. So what are you waiting for? Schedule a call with us now to get Quickbooks service at an affordable price.


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Accounting tips for small business and start-ups

How to do accounting for small businesses?

Accounting tips for small businesses and start-ups

The most daunting task after founding your startup is kickstarting your accounting. Accounting is not as easy as falling off a log but keeping track of your expense, cash flow, and business transactions are essential, and it will pave the success path of your small business.

Challenges faced by startups in accounting

The challenges emerging in the budding days of a startup can be frightening. Firstly, you need to juggle multiple financial information like sales, debts, expenses, payroll, etc. Secondly, raising finances to fund your startup. Thirdly, choosing a payment method for employees. Lastly, prepare all financial statements and reports to get a clear picture of your business.

Stepwise Accounting Guide 101 for startups:

These challenges can be overcome and head start your accounting with the following steps:

  • Strategically Draft a Budget

Without a strategic business plan, you will sail without any end goal and make budgeting errors. It ensures that every decision you make aligns with your organizational goals. Firstly, it forecasts revenue, plans expenditure, allocates funds strategically, and communicates the purposes of the business. Secondly, it increases operational efficiency. Thirdly, you can make profits on seasonal business days with a strategic budget. Last but not least, it secures a business from a financial crisis by improving cash flow management.  

The process of drafting a business plan starts with analyzing the operating cost of the business, and it should consist of fixed, variable, one-time, and unexpected expenses. Next, you must list all the income sources and forecast your revenue to set realistic financial goals. Besides these, you need to accommodate interest and taxes while integrating all the departments—furthermore, draft estimates for financial statements. 

Here are budgeting tips to smoothly manage your finances.  

  • Develop a bookkeeping system

Bookkeeping begins with creating a new business account to split personal and business funds. Next, you need to unclutter and organize all the records in one place to save time. Furthermore, it would help if you track your expenses and account receivables. It’ll help you know exactly where to look in times of tax filling and making or receiving payments. Using an excel spreadsheet or software system such as Quickbooks enables you to keep track of all the expenses, revenue, and invoices in one place. 

As a business owner, you must keep an eye on your invoices to trace your billing. Bookkeeping is a tedious and time-consuming task, and therefore, many companies are outsourcing their bookkeeping to increase their productivity. U.S. outsourcing statistics also suggest that outsourcing in the financial services market will continue to rise by almost 7.5% annually. 

  • Create a trustworthy Payment Gateway

All your marketing and promotions could fail if you don’t have a payment gateway as it structures your company. With this step, you can start selling your product, and it impacts your sales, as now providing invoices portrays you as a trustworthy startup.  

With the growing business losing track of payments and invoices can be evident. So, it is advisable to integrate all electronic payment systems with your accounting software. It allows you to automate your accounting systems and books. Also, it saves time and adds accuracy by removing human errors from accounting records—automated tracking of payments in real-time increases cash flow and cuts labor costs. 

  • Manage Cashflow System

A study from Intuit stated that 61% of small businesses worldwide struggle with cash flow. An extended cash shortage is probably the worst nightmare of an SMB owner. The cash shortage often occurs due to the massive cash inflow and outflow gap. The first step is to analyze your inventory over time. It includes identifying the low-demand products and selling them at a discounted price. Also, it would help if you stopped buying any additional stock of such products. Instead, invest and buy the inventory giving high returns. 

If you deal in monthly payments, shift to getting paid right away once deliverables are given. It is best to open a business line of credit when your business credit score is good, and it also reduces the rejection risk of getting credit in the future. Instead of buying the various required equipment, you can lease them to minimize the short-term financial burden. Last but not least, make the best use of technology to create streamlined budgets and project cash flow with cloud-based software and apps. 

  • Set up payroll System

Either you have hired or plan to hire more employees as a startup. But have you thought about how you will pay them without delays? If no, then the answer is by setting up a payroll system. Initially, it would be best to determine how often you’ll pay employees. You must provide Form W-4 to identify withholdings to deduct tax from paychecks. Moreover, constantly be updated on the IRS deadlines to avoid penalties. 

In the United States, the IRS estimated that one out every three employers had been penalized for payroll. Billions of dollars in fines are collected each year. It can also destroy your hard-earned goodwill. So you can consider outsourcing your payroll to a cloud-based payroll service provider. It will give you freedom from security and software updates worries as they are transparent and accessible with 24*7 customer support.   


Accounting, at times, can be exhausting and divert you from your end goal. That’s why we empower you with accurate accounting and bookkeeping services. A top-secret is that our estimates grow only with your startup’s growth. So, schedule a call with us now and get relief from the accounting stress. 


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Accounting Tips To Smoothly Run Your Restaurant

Accounting Tips for Success of Your Restaurant

5 Effective Accounting Tips To Smoothly Run Your Restaurant

Did you also start your own restaurant to follow your passion? 

Then you might have or are facing hurdles to manage your restaurant’s accounting. Don’t stress out pal because, as per a report, around 52% of restaurants face the challenge of high operation costs. 

A part of this high operating cost is your daily accounting. Restaurant accounting includes keeping a tab of the restaurant’s finances and drafting the budget accordingly. It is one of the indispensable aspects of running a restaurant.

Restaurant Accounting is different from other industries. Accurate and true finance reports are necessary for any business’s success. But for restaurants, it becomes more important as it relies on historical data and current records to forecast and make business decisions. The profit margins in the restaurants are very thin. Due to this reason, it becomes vital to pay attention to your accounting process. 

That’s why we bring you the 6  effective accounting tips to smoothly run your restaurant. 

  • Understand the language

If you wish to excel in your accounting game as strongly as in your kitchen, then you must learn the language of accounting. Everyone is not a trained accountant, that’s why you should start by understanding the basic terms. For instance, debit, credit, balance sheet, cash flow, prime cost, profit & loss, etc. In the beginning, it may feel heavy-duty. But, grasping their meaning, differences, and application in accounting will give you essential financial insights into your restaurant. However, if it feels onerous you can hire or outsource an accountant. 

  • Keep track of your Bookkeeping

Bookkeeping should be your new habit. Firstly, you can create a cash-flow projection to calculate the estimated revenue after expenses. It builds the foundation for your restaurant’s budget. Secondly, you must maintain regular financial records, for future IRS audits. You can consider buying restaurant bookkeeping software as well. Thirdly, as a restaurant owner, you must track your inventory on a weekly basis. Lastly, maintain a sound ratio of Cost of Goods Sold (COGS). It helps in setting better pricing and sales goals and making your restaurant profitable.

  • Choose the right point of sale system

You must invest in the right Point of Sale (POS) System. It will help you understand where your money is going. A POS system offers you a detailed analysis of your accounts via insightful infographics. However, many managers are unaware of the benefit of intertwined POS and accounting systems. Linking your POS system and accounting system helps you track inventory and labor costs, methods of payment, etc. There are various POS systems specifically designed to manage all facets of a restaurant. For instance, Toast POS, Lightspeed POS, ShopKeep, Square, etc. 

  • Get your restaurant insured

Understanding financial terms will definitely help you comprehend the accounting department. But, it is still exposed to financial troubles namely, property damage and lawsuits. For instance, your kitchen can catch fire and destroy the expensive equipment, or a customer slips on the restaurant’s wet floor and breaks his leg. Any of the instances could lead to financial calamity. Therefore, you must get your restaurant insured. Many small business insurances are available for restaurants such as commercial general liability and restaurant insurance. This insurance offers general liability and property damage coverages. You can consult an insurance agent to identify and secure the specific risk associated with your restaurant.

  • Consider Outsourcing your Payroll

Paying your employees always seems like child’s play. However, it includes deciding a pay period, number & type of payments, classifying employees & withholding taxes. With the host of tasks at hand to do, properly handling payroll becomes tough at times. Also in case of mistakes in payroll you have to beat liability issues and high penalty fees. Besides all of these, it’s hard to keep up with the dynamic workforce laws.  That’s why it is advisable to outsource your payroll system.


The restaurant industry varies from other industries in terms of profit margin. Eventually, with the success and popularity of your restaurant, accounting often gets tough. That’s why we empower you with accurate accounting and bookkeeping services. Not only this, we help you with payroll and strategic business planning while you focus on growing your restaurant. 

That’s why we bring you the 7 effective accounting tips to smoothly run your restaurant. 


-by Dipali  Nishad

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Credit card Process

Small Business Credit Card: Eligibility & Process

Small Business Credit Card Eligibility & Process


A small business credit card is opened to separate business expenses from personal ones. In fact, it opens a line of credit for the business. These cards not only improve your credit score but also offer travel rewards, added miles, higher cash backs, and bonuses. Building a good credit score helps in managing business finances. Moreover, it improves cash flow and timely payments

Well aware of the benefits but confused about how to apply for a small business credit card? Check out eligibility, requirements, and detailed application process of the business credit card. 


Who is eligible for a small business credit card?

A load of business credit cards is available in the market. Some credit cards yield numerous benefits for large companies. Similarly, there are credit cards for small businesses having five or fewer employees. Every card issuers have predefined eligibility criteria.

Here are a few common restrictions you could face.

  • Firstly, few card issuing authorities don’t issue credit cards to non-profit organizations like sole proprietorships.
  • Secondly, few issuers don’t issue to businesses operating in specific industries.  These include multi-level marketers, cannabis, or firearms.
  • Thirdly, not qualifying the minimum eligibility criteria. For example income range, the number of business years, and credit score. 

In the end, even if you are unable to get a card from one issuing authority, you can get it from another.  With the host of business credit cards, there is one for everyone. 


What is required for the application?

You must have applied for a personal credit card once in your life. Applying for a business credit card is pretty much the same. Here’s a checklist before you go to a credit card issuing authority :

  • Business address 
  • Number of Employees
  • Industry
  • Number of business years
  • Annual revenue 
  • Monthly expenses expected to cover using the card
  • Tax Identification Number (TIN)
  • Employee Identification Number (For incorporated business)
  • Social Security Number (For sole proprietor or single member LLC)


How to apply for a small business credit card?

  •  Research 

Primarily, you need to research to find the credit cards available for your business. Understand what kind of benefits you want from the credit card. For instance, do you need reward miles or cash back programs? Analyze your business expenses, needs, issuing fees, and interest rates of credit cards. Afterwards,  discern which cards fulfil your business needs. Here are the 8 things to know before you get a business credit card


  • Choose a Card

Next step, is to decide which card is the best fit for you. Secondly, read all the cardholder rights, obligations, terms, and conditions. Before applying, comprehend how rewards can be redeemed or when the 0% introductory period ends. Lastly, check the eligibility criteria of the credit card you want.  


  • Check your credit score

In case, your business years are three or more, you have a business credit score. That helps you to qualify for a business credit score. The issuers also check your personal credit score. The higher the score, the higher chances you have to get your best fit credit card. Your personal credit score should be at least 650. If it’s not, try to pay your debts, clear out credit disputes and improve the credit score


  • Collect the required information and apply

If your credit score is in good shape, you can apply for a credit card. Now, you only need to collect all the required information in the application process. Visit the credit card issuing authority physically or on a portal. Fill in details and answer a few more questions.


After submitting everything, you need to wait for the issuer’s approval. If all goes error-free, you will get a card. Lastly, you receive an email to activate the card. Finally, you can use your credit card. 

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5 Exit Strategies for Small Businesses

A study by Securian Financial revealed that 72% of small business owners have no exit strategy at all. Business owners are unaware of the types of exit strategies for business. Having an exit strategy is as vital for small businesses. Moreover, it helps in reducing losses. 

What are the exit strategies for businesses?

Exit strategies for small businesses don’t help only in case of losses. Business ownership is transferred even at the profit stage. Owners simply might want to leave the business. That’s where an exit strategy comes to play its role.

Moreover, an exit strategy helps in securing business investments. It also helps in limiting losses.

Why are these strategies essential for a business?

An exit strategy offers a blueprint of the future. Firstly, it helps visualize whether you will pass the business to someone or sell it. Secondly, it’ll be ready with the next person at the helm and an exit period. Also, having a clear plan increases the trust of prospective buyers.

Thirdly, it prepares you to handle the emotions of exiting your brainchild. Lastly, tons of documents and paperwork are always involved. So, you will have a real-time plan to execute before exiting the business. Before discussing the best exit strategies, note the following:

  • Time period you wish to run the company for. 
  • Current financial status and what you aim to make in future.
  • Process of compensating investors or creditors if required.
  • Check out the various types of exit strategies for small business.

1)     Merger

Two businesses combined into one is called a merger. As a result, it skyrockets the value of the business. Also, it attracts investors. You are a part of the merged company. Furthermore, you hold one of the top management positions. There are 5 kinds of mergers:

  1. Horizontal Merger: Both businesses produce and sell the same products.
  2. Vertical Merger: Both businesses utilize different supply chains.
  3. Conglomerate Merger: Two indifferent businesses.
  4. Market extension: Both sell the same goods and services. Both are competitors in a different market.
  5. Product extension: Products are the same and operate in the same market.


  • Both businesses have negotiating power.
  • You can take a short, negotiating business.


  • The legacy of your business can be at risk.
  • Time-consuming and expensive.
  • The success of the merger isn’t guaranteed.


2)     Liquidation

Liquidation means winding up the business and selling all assets. It includes clearing all debts and third-party payments. This happens when a business owner can’t sell the business in any other way. Also, a liquidator is hired to ease the process.


  • Final closure of business and your legacy
  • It is a clear-cut strategy. It is simple and quick compared to other strategies.


  • Return on investment in this strategy is likely to be below
  • Further impacts your employees, partners, clients, and customers.


3)     Initial Public Offering (IPO)

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public , Investopedia defined. This strategy is used to generate additional capital. The private company transfers to a public company. Thus, businesses attract more investors.


  • Medium of brand awareness and building strong goodwill
  • Converting to a public company can be profitable


  • Long & costly process.
  • Additional new duties of filing SEC reports.
  • Reduces flexibility and decision-making power.


4)     Management and Employee Buyouts

The internal members of the company purchase or acquire the business. These members are aware of daily operations. On top of that the higher-level executives fill the required gap. That’s why they can manage the company. 


  • Experts of your own company run and manage the business.
  • The straight and less hectic process as compared to selling to a third party


  • Top level executives might fall short in taking duties.
  • Changes in higher level management lead to a negative environment. 


5)     Family succession

It is believed that family succession exit does not need to be planned. Whereas, it holds equal importance as any other exit strategy. Leads to business being in your family only. Owner passes down the business to the child, spouse or other family members.


  • Family members are aware of the daily business operations
  • Having a plan will help you train that person to run the business efficiently


  • Chosen candidate might not have leadership and required skills
  • Mixing professional and personal life might evoke stress.

A Strategic Plan is needed while turning around a declining business. Besides, the Strategic Plan provides a blueprint. 

Let us help you develop a powerful Strategic Business Plan here


-by Dipali Nishad

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4 Budgeting Tips for Small Business Owner

Have any sudden expenses attacked your business and turned your hair grey in the past? 

The most possible reason could be not having a documented budget.  

“Budgeting is not just for people who do not have enough money. It is for everyone who wants to ensure that their money is enough.”– Rosette Mugidde Wamamble 

Why is a budget important for small business owners? 

A budget never guarantees success, but it strategically controls your finances. Firstly, it forecasts revenue, plans expenditure, allocates funds strategically, and communicates the goals of the business.  Secondly, it increases operational efficiency. Thirdly with a strategic budget, you can make profits on seasonal business days. Last but not the least, it secures a business from the financial crisis by improving cash flow management.  

Also, as per research done by U.S. Bank, 82% of small businesses fail due to poor understanding and management of cash flow. This percentage can frighten any new small business owner. Here are 4 budgeting tips for small business owners to smoothly manage their finances.  

  1. Build a Good Credit Score:

    Sticking to a budget helps you maintain enough cash to make timely payments. As a result, you have a positive payment history which is counted while calculating a business credit score.  A budget enables you to pay your bills in cash and not by swiping a credit card. Due to this, it reduces small business owners’ dependency on credit cards. The lesser you swipe the card, the better the credit score you maintain.
    With a sound business credit score, you can get a good amount of money at a more favorable interest rate. Banks and other lending institutions estimate your credibility with this score. So, improving business credit score is necessary for your company.

  2. Focus on Financial Relationship:

    In any organization, many departments like planning, manufacturing, sales and finance departments are interconnected. Therefore, the budget needs to be prepared considering the funds spent in one will affect the demand of funds of other departments. 
    For instance, if this financial year you aim to increase sales, you need to invest more in the sales & marketing department. If you observe an increase in sales, you require more products on shelves. Eventually, you need more funds to buy more inventory and pay more logistical charges.

  3. Revisit your budget:

    Large companies make annual budget plans, but small business owners should make their plans more frequently. As a new small business owner, you see a lot of ups and downs in your company’s growth. You need to revise your budget to sail through this uneven growth and profits as needed. 
    Updating the budget on a monthly or quarterly basis gives a clear picture of the finances of your business. At the end of the day, you make informed decisions. Also, you wisely spend and allocate your money. 

  4. Overestimate Expenses sometimes:

    No one was prepared for a worldwide pandemic. Small businesses were the worst hit. That’s why the business environment is said to be dynamic and unpredictable. And so are the income and expenses of future years.
    In this situation, the only tip for small business owners is overestimating their expenses. It enables a business to sustain itself in a financial crisis. On top of all, lower expenses than the forecasted one can lead to an increase in estimated profits and cash flow. 

However, overestimating expenses for one department (manufacturing) can result in less allocation of money to other departments (marketing) and negatively affect the business (here sales will be less). 


-by Dipali Nishad

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Improve your credit score

How to improve Bank Credit Score

By Dipali Nishad for SKB Accounting


What is a Business Credit Score? 

 A business credit score shows creditworthiness of a company. It is calculated after analysing multiple factors to comprehend the financial position and risk of a business. It widely ranges from 0 to 2000, constituting majorly three business credit ranges i.e. 

  1. D&B Credit Score (1-100) 
  2. Experian Credit Score (0-100) 
  3. Equifax Credit Score-
    a) Payment Index (0-100)
    Tradition Score Risk (100-992)
    c) Business Failure Score (1000-1880) 


What is the importance of a sound business credit score? 

Your small business may require additional funds for working capital requirements, equipment purchase or expansion. The foremost option you look for is taking a loan, that’s where Business Credit Score comes to play. The institution or individual lending you money, first studies your business credit score to measure the financial risk involved. With a sound business credit score, you can get a good amount of money at a more favorable interest rate. Therefore, maintaining a good business credit score is necessary for your company.  

An ideal business credit score is 750 or more. Incase your business credit score isn’t matching the bar, here are some tips that will help :- 

  1. Do not cancel old business credit cards 
    Credit history is an important aspect while analyzing credit score. A positive credit history portrays your stability and the trust that suppliers & vendors have in your business. 

    An older credit account has a longer credit history. So don’t scrap off your old credit cards. If you have many credit cards, cancel out the latest ones. It will reduce the impact on your credit score. On the other hand, cancelling an old credit card also erases the credit history which could be included while calculating the final business credit score. 

  2. Stick to the Payment Deadlines 
    This might sound like a no-brainer but business owners often forget the payment deadlines in the middle of other important operations and management of the company. If you have to pay suppliers on regular intervals, try to pay at least once in a month or more frequently.  It will boost your credit score with brownie points. It portrays you as a creditworthy business. 
  3.  Decrease your credit utilization ratio
    A credit utilization ratio shows the percentage of a borrower’s total available credit that is currently being utilized. The Credit Reporting Agencies uses this ratio to calculate your business credit score. A low credit utilization ratio will improve your credit score. The ideal ratio is up to 30%, notes Forbes. In order keep this ratio low following things can be done:- 
    • Pay off your balances or at least reduce them as soon as possible. 
    • Increase the limit of your credit card. 
    • Reduce your credit card expenditure.
    • Take a new line of credit. 

      4. Take a short term loan & repay EMIs on time
If you have repaid your older loans, take a short-term business loan and repay it on time. This makes the credit reporting agency see you as capable of handling credit. The business credit score will improve by implementing this tip.


-by Dipali Nishad

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New Year Accounting Resolution for your Business

By Dipali Nishad for SKB Accounting


Each year, people all over the world have a new resolution to improve their mental health, physical health and career goals among many others. We are here to remind you of some business resolutions that you might not want to miss out on in 2022. 

  1. Reform Business & Marketing Plans: No business can stand out in the corporate world without an effective business and marketing plan. You must have stepped in your industry with one. However, with the passing time, it requires an update as your finances, business goals, competitors and range of a team change. If you wish to expand your business or start a new project, you may need to take a business loan. Revisiting your financial plan according to your changing requirements becomes crucial here.

    With the technology driven world, not riding on the latest marketing trends can cost a decline in your profits. You can analyse the success of the marketing plans you used last year and curate the best one for the new year. Brainstorming and designing marketing strategies with your team will give you an edge over competitors.
    Here are some marketing strategies that you shouldn’t miss out on.

  2. Take Professional’s Tax Planning Advice: Tax is complicated, that’s why a tax professional’s advice is essential. Tax planning is a legal process where a CPA or some other tax professional expert arranges and looks at all of your business expenses, revenues and activities to inform you of all the tax breaks or waivers available to you.  Tax advice is considerably a saving to your business. They help in restructuring your company finances to make them more tax-friendly.

  3. Clear unpaid Customer Invoices: Unpaid invoices directly affect your cash flow. If an invoice is unpaid for a very long time, don’t hesitate to give a gentle reminder. However, always verify that the invoice had clear details like due date, amount of invoice, customer’s name, course of action if the deadlines are missed, invoice is mailed/sent at correct address, etc.
  4. Prioritize Company Culture: The Alternative Board (TAB) stated in its survey of business owners that 86% of respondents say they believe company culture directly impacts productivity. As a small business owner, it’s important to understand and maintain good relations with employees. Your company culture influences individuals mindset, engagement and internal coherence in the actions of employees having diverse backgrounds.

    “Customers will never love a company until the employees love it first.” – Simon Sinek

    You can conduct surveys on an anonymous basis to get their take on the company culture. Then accordingly analyze and curate a culture that portrays your business value while also prioritizing the requirements of employees.

  5. Outsource Accounting Functions: In the last few years, did you ever feel that your employees or you are not able to make time for complex operations of the business due to in-house accounting?

    Yes, then outsourcing is your call.

    Outsourcing the accounting department can bring massive changes in your efficiency and performance because of the following reason:

  • Eliminates Cost & Time of Hiring & Training an in house accounting department
  • Get Expertise of Accountants and Professionals from different industries
  • Accounting firms use latest automation technologies which provides accuracy
  • Handles and gives best advices for your accounting department, so that you can focus on your primary operations

Schedule a meeting with us here to keep your business ahead of the curve this year! 


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Writing in books

Tips for effective debt management for small business owners

Do you find it difficult to manage business debts? 

Not to fear, a recent survey by Gallup states, 49% of small business owners find it difficult to manage their current debt

“If you really want to get out of debt, it’s easiest if you put some sort of plan or strategy behind it. Just saying you don’t want debt is one thing, but actually having an approach to doing it will get you there.” says Tim Steffen, Senior Consultant, PIMCO.

What is Debt Management?
Debt Management is controlling and reducing debts through financial planning and budgeting. It aims to reduce, reorganize current debts and slowly eliminate them. Business owners can create a debt management plan or take professional help like trusted advisors and credit counseling to make one. 

Why is it important?
The business environment is uncertain and dynamic. In the post-pandemic market, a pipeline of funds is significant for survival and growth. Cash is required for every operation such as recruitment, product launch, acquisition of assets, expansion, etc. Small businesses usually take liabilities to infuse new funds. Thus, debt becomes a natural part of running a business, which only needs to be planned well. However, excess debts are also harmful to any business. 

Here are the 5 effective Debt Management Strategies for your business:

  1. Rework Business Budget: The foremost step to manage your debts is being aware of the business’s current financial position. Then precisely study the predetermined financial goals and the current budget of the business. Based on that, redesign the budget.
    Small business loans should be the way to go as a source of capital while developing the budget. Bifurcate your expenditure as primary and secondary and work on reducing secondary by either eliminating or finding alternatives to fund those expenditures.
    This will help you analyze what debt will pose a threat to your business so you can prioritize your payments accordingly.
  2. Improve Cash Flow: If your small business is making regular profits, and you still can’t manage to get in a stable position concerning your debt, the reason could be poor cash flow management. The owners can enhance their cash flow by following these strategies:
  • Measure the actual financial position with the predetermined budgets. Identify the gaps and focus on them to attain the required business cash flow. 
  • Improve the management of payables and receivables by ensuring timely invoicing. Install automated payment reminders and accounting software for convenient transactions. It boosts the cash collection procedure. If your business is unable to pay all the current liabilities, ask suppliers and creditors to extend payment terms. 
  • Manufacturing, Wholesale or Retail businesses should neither carry excessive inventory nor a slow-moving inventory as it consumes most of the cash flow. 
  • Keep an eye on expenses that can be cut and find savings that can be temporarily stopped to relocate this cash in debt payment. 
  1. Negotiate with suppliers: Keep an eye on your accounts payable. You can always negotiate with suppliers on different terms like early payment discounts or length of payment period. You can cut costs here through negotiation and use these funds in other areas.This way you maintain cost-effectiveness and get the highest returns out of your funds.
  2. Refinance Debt: Debt refinancing means replacing an existing debt with another debt with more favorable terms and/or conditions. It is done to take advantage of better interest rate terms of new debt. In addition, owners refinance debts to reduce the monthly repayment and switch from a variable-rate debt to a fixed-rate or vice versa. For instance, ABC Ltd settles its current loan by taking a new loan with less interest rate than the earlier one.
  3. Take help of a Debt Management Professional: Seek professional advice about the different ways in which you can pay off your debt. Leverage their experience towards reducing your debt.
    As a small business owner, you can always take the help of a Certified Public Accountant (CPA) or a legal firm to get a reliable debt management plan.


Need a Debt Management Plan?
Indeed, debt management can be tricky at times, especially for small businesses. Don’t fret out, SKB Accounting is here to cover you. We’ll keep track of your debts and accounts to secure your business from any financial crisis. Hop on the board and let us take care of your long-term goals considering your current situation. So that you can primarily focus on your business goals. 


By Dipali Nishad for SKB Accounting

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