With tax reform expected this year, we’re facing a “wait-and-see” period for tax laws, where 2011 didn’t bring many changes in small business tax filings. No president wants to increase taxes in (or leading up to) an election year, so the changes we did see were mostly positive, including the extension of several tax credits and deductions for individuals.

Some tax credits you may have enjoyed this year, and will continue to enjoy in 2012, include:

- Taxpayer credit of up to $2,500 per student for higher education, courtesy of the American Opportunity Credit, which was extended for 2011 and 2012

- Multiple credits for energy-efficient home improvements have been extended through 2016

- Business, moving and medical mileage reimbursement rates went up as of July 1, 2011

Tax Relief for Businesses

While these credits and deductions may have helped you as an individual taxpayer (and what’s good for your own pocket is going to reduce your stress on a personal level, which, in turn, is good for your business), you may have also taken advantage of tax relief for small businesses, including:

Health care tax credit – Until 2013, small businesses who pay at least half their employees’ health care coverage can deduct up to 35 percent of those costs. It gets better in 2014 when small business employers can deduct as much as 50%.

Energy-efficiency tax credits – Credits are available for building improvements, energy-efficient vehicles, and renewable energy installations

As we expect a new round of tax reform in 2012, tax consulting and outsourced bookkeeping can help business owners with payroll and withholding tax changes, making the most of tax credits when hiring new job candidates, and reducing tax liability with the right business strategies.

Are you starting the new year looking at a clean financial ledger and promising yourself you’ll never let your books get as convoluted as they did in 2011? Are you already dreading filing your year-end taxes and very glad you get a chance to start fresh?

You might start 2012 with the best intentions for bookkeeping and your business. Like any other New Year’s resolution, your goal to keep your books straight, to log every invoice, expense and payment on time and in detail begins well. But commonly quoted statistics say that most (four out of five) New Year’s resolutions are abandoned by February. Your January books look clean and organized and, most importantly, balanced. Then by mid-February, you forget to log a check when it comes in, and find yourself backtracking.

By Spring you’re scratching your head wondering why your books aren’t balanced. A few months later, you fear opening QuickBooks because you’re not sure what you’re going to find or how to make sense of it all. You know you’re making money. Your business is growing. But you can’t make the fast financial decisions to keep your company on top because you don’t have the right facts in front of you. That’s when you start to realize you need some help. Instead of stubbornly staying the course and going it alone, you’re ready to turn to outsourced bookkeeping.

Why let it go so far? If you’re reading this in the first week, or even the last week, of January, it’s not too late to get some part time controller help before your books become a mess.

We’ll even go back and work with you to balance your 2011 books before tax time, saving you money, IRS late fees, and lots of time and headaches (not to mention decreasing the chances that you’ll face an audit because of bookkeeping errors.)

A New Start with The Controllership Group 

When you sign on to take advantage of controllership services with us, we will work with you to set up a bookkeeping system that works, on the best bookkeeping software for you. If you’re already working with software you like, you can continue using it, and we’ll help you store your financial data in the cloud so it will always be available to you, from any computer, tablet or smartphone with Internet access and the latest browser.

After we get you set up, we will not only keep your books up to date with our bookkeeping services, but will be trusted advisors arming you with the knowledge you need to make the best financial decisions for your company as it grows.

There’s no need to be frustrated with your books. Make 2012 the year you make a real fresh start with online bookkeeping solutions and a virtual financial controller.

If you’re looking for a few extra tax deductions, or even tax credits, for 2011, it’s not too late to cash in on some energy-efficient upgrades that will also save you money throughout the year. Rules, requirements and credits will change in 2012 and beyond, so if you have the capital to make the investment, green improvements could be your best way to claim some extra deductions and reduce your tax liability in 2011.

Any capital improvements or equipment purchases for your offices are tax deductible, and when you make energy-efficient improvements, you will also cut your electric costs and save your company money year-round.

Here are a few green improvements you can make in 2011 that will save you money now and in the future:  Windows, Doors, Appliances, like refrigerators and microwave ovens for the breakroom, Lighting, HVAC systems, Hot water systems, or Insulation.

What’s Great About Green Deductions

While businesses are often required to recover costs of expenses on a depreciated schedule, some commercial buidling energy efficiency upgrades can be fully deducted in the year they were incurred. If your energy efficient upgrades reduce total energy costs by 50 percent or more compared to an “energy-fit reference building,” If this requirement is not met, you may still be eligible for some deduction — and you can still deduct it as an expense on a depreciated schedule.

Additionally, if you opt to install solar panels or a solar hot water system, you may qualify for a 30 percent tax credit for your renewable energy installation. Again, you may be able to deduct the entire cost of the system in the first year rather than depreciating the costs over five years.

This may help to give your business a cash infusion for growth in 2012. A tax professional and outsourced financial controller can advise you on the best moves to make before the new year.

Have you started writing your budget for 2012 yet? Do you have an idea of what your projected growth might be? Where will you be investing capital? Is your marketing spend shifting, like so many business owners is, to inbound, online marketing rather than traditional avenues? (Incidentally, look for some interesting things from TCG in that realm, as we continue to update our blog regularly and provide you with information about the accounting industry, procedures, facts and laws as it relates to small business owners.)

Here at TCG, we’ve already written our 2012 business plan and budget and we’re excited about what the future holds for our company. But we know that many businesses, especially this year, can’t say the same thing. And that’s where we can help.

If you’ve been accustomed to holding the financial reins of your company for years, it may seem scary to put your books — as well as some financial decisions — in the hands of an outsider. But an outsourced financial controller isn’t looking to take decision making away from you.

We know that financial planning and budgeting can be scary. Even if your books are in order (which, in the case of many small business owners, they’re not) it can be challenging interpreting all those numbers in boxes.

An outsourced financial controller will interpret the data in your year-end financial statements, help you analyze it, and act as a sounding board as you plan your spends for the new year. TCG outsourced financial controllers assist you with:

• Building a solid business plan for 2012 and beyond
• Financial budgeting and forecasting
• Managing working capital
• Analyzing balance sheets, profit & loss statements and cash flow statements
• Financial controllership services on an as-needed basis, for much less than you’d pay a full-time CFO or financial controller

Worried about 2012 Business Planning?
Even if you’re just happy to have made it through 2011 and haven’t even started thinking about your 2012 business plan, don’t worry. It’s not too late to ask for help. Relax, enjoy your holidays and know the TCG has your back with the financial controllership services you need — at prices you can afford.

Do you need business coaching? More and more small business owners today, in the Indiana area and beyond, are turning to a business coach to help them achieve their company’s goals, financial and otherwise. According to a MarketData report, there were 40,000 business and/or life coaches in the U.S. in 2007, and the number is steadily climbing at a rate of 18 percent per year.

If you’ve never worked with a business coach, you might be surprised by the outside perspective one can provide to your company. When you combine financial controllership with business coaching, however, you’ll combine the analysis of tangible figures with practical tips to grow your business. What can a business coach and part-time financial controller do for you? Here are just three ways business coaching with a financial controller can:

1. Provide an outsider’s perspective on your business, or help you “see the forest” beyond the trees. From the small details to the big picture, a business coach can determine what’s working and what’s not, free of emotion, bias or judgement. They can deliver that information in a factual yet diplomatic way, and offer suggestions to fix any shortcomings or address any challenges. The final decision always rests with you, the business owner, but your business coach can help you see the facts in a different light so you’re confident you’re making a well-educated decision based on real-world knowledge.

2. Offer analysis of your financial reports, including cash flow statements, profit & loss statements and balance sheets. It’s not enough to just read the numbers in the boxes, you have to know how to use that information to make the best choices for your business. This is one area where the experience, knowledge and training of a financial controller stands out above another business coach, who may not have such credentials.

3. Be a trusted advisor when you don’t know where to turn. Running a business can be scary, if you’re a lone-wolf CEO running things at the top. Your financial controller offers business coaching that can help you gain a sense of security about your decisions and leadership skills. Every leader needs someone they can turn to for advice. Shouldn’t it be someone you can trust, someone who understands your business, and someone with the savvy to help you make the right decisions when you’re unsure of the next step to take?

In short, business coaching can help you weather any economic storm, survive that tumultuous start-up phase, or take your growing business to the next level. Isn’t it time you lined up a part-time financial controller you can trust?

We’ve all heard that old business saw, “You can’t improve what you can’t measure.” Nowhere is this more relevant than when it comes to your company’s bottom line, cash flow and profitability. But how does a small business owner measure these things? And how do you know your measurements are accurate? The answers lie in having the right business and bookkeeping processes in place, along with the right person to control and manage these processes.

Here are a few steps you can take and processes you can implement to measure, and improve, your company’s profitability.

1 – Maintain up-to-date daily bookkeeping. – Daily bookkeeping ensures that Accounts Receivable invoices go out on time, so you can be paid in a timely manner, and that Accounts Payable are paid in a timely manner to avoid interest charges, late fees or bounced check fees. When your AP/AR is running like a well-oiled machine, you can save money on interest, late fees and you’ll know you always have enough in the bank to cover expenses as they arise, whether it’s for new office equipment or to cover payroll.

2 – “Close the books” monthly to spot any inaccuracies and ensure up to date financial records. – When your part-time outsourced bookkeeper
balances and closes the books monthly, and they are reviewed by our outsourced controller, you’ll know exactly where you stand financially and can take steps to improve. This monthly “reality check” is necessary to spot errors and also so you can make fine course corrections as you steer the financial ship of your business.

3 – Review financial reports monthly to get a snapshot of your company’s financial health, and perform financial forecasting as needed. – Monthly cash flow reports, balance sheets and profit-and-loss statements give you a clear view of how your company is doing — and how you might improve. With a part-time outsourced bookkeeper and financial controller helping, you’ll receive up-to-date reports monthly and have help analyzing the information in these reports so you can take actions that will benefit your company. Financial forecasts might be needed quarterly, annually, or whenever your company is preparing to introduce a new product to market.

These are just a few of the processes an outsourced bookkeeping and controller staff can perform to keep your company on the right financial track, improve profitability, and provide you with the peace of mind you need as a business owner.

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If you’ve hired bookkeepers before, you know it’s not easy to find people with the experience, credentials and personality well-suited for the day-to-day, daunting task of managing your books with accuracy. Has your firm experienced a high turn-over rate with bookkeepers, frequent bookkeeper-burnout, or such an ebb-and-flow in your bookkeeping needs that at some times of the month, you didn’t even need a full-time, in-house bookkeeper and had to find other ways to keep your staff busy? (Coffee-and-donut-run, anyone?)

If this sounds familiar, your business might benefit from a part time outsourced bookkeeping staff to manage books and create and analyze financial reports.

It’s still important to choose your outsourced bookkeeping services with care. Here are a few questions you should ask when looking for an outsourced bookkeeping firm or part-time financial controller services.

1 – Are all your bookkeepers based in the United States? – It’s important to find an outsourced bookkeeping service with bookkeepers and outsourced controllers based in the United States. Time zone differences and language barriers when someone is across the world can make a huge difference in the quality of service you receive.

2 – Are your bookkeepers trained in GAAP compliance? – The Generally Accepted Accounting Principles drive accounting in the U.S. If you’re looking to get funding from outside investors or a cash infusion from a capital investment firm, you’ll need to show bookkeeping records that comply with GAAP principles. Even if your small business isn’t at this point yet, it’s simply a good habit to keep your records in accordance with GAAP.

3 – What’s your hiring process for bookkeepers and part-time controllers? – Hiring bookkeepers and controllers isn’t easy, which is one benefit to using an outside firm. But you want to make sure any company you choose will adhere to the same high standards you would if you were hiring your own bookkeeping staff.

It’s certainly easier to leave the hiring and managing of bookkeepers to a firm you can trust. TCG provides bookkeepers and financial controllers on a part-time basis, when you need them, to deliver on-time bookkeeping processes and the financial reports you need for your business.
Then you can send someone else for the coffee and donuts — your office manager needs a break from her desk anyway, right?

We’ve all heard that old business saw, “You can’t improve what you can’t measure.” Nowhere is this more relevant than when it comes to your company’s bottom line, cash flow and profitability. But how does a small business owner measure these things? And how do you know your measurements are accurate?

The answer lies in having the right business and bookkeeping processes in place, along with the right person to control and manage these processes.

Here are a few steps you can take and processes you can implement to measure, and improve, your company’s profitability.

1 – Maintain up-to-date daily bookkeeping. – Daily bookkeeping ensures that Accounts Receivable invoices go out on time, so you can be paid in a timely manner, and that Accounts Payable are paid in a timely manner to avoid interest charges, late fees or bounced check fees.

When your AP/AR is running like a well-oiled machine, you can save money on interest, late fees and you’ll know you always have enough in the bank to cover expenses as they arise, whether it’s for new office equipment or to cover payroll.

2 – “Close the books” monthly to spot any inaccuracies and ensure up to date financial records. – When your part-time outsourced bookkeeper balances and closes the books, you’ll know exactly where you stand financially and can take steps to improve. This monthly “reality check” is necessary to spot errors and also so you can make fine course corrections as you steer the financial ship of your business.

3 – Review financial reports quarterly to get a snapshot of your company’s financial health, and perform financial forecasting as needed. - Quarterly cash flow reports, balance sheets and profit-and-loss statements give you a clear view of how your company is doing — and how you might improve. With a part-time outsourced bookkeeper and financial controller helping, you’ll receive up-to-date reports quarterly and have help analyzing the information in these reports so you can take actions that will benefit your company.

Financial forecasts might be needed quarterly, annually, or whenever your company is preparing to introduce a new product to market.

These are just a few of the processes an outsourced bookkeeping staff can perform to keep your company on the right financial track, improve profitability, and provide you with the peace of mind you need as a business owner.

Financial forecasting is one way to predict how well your business will do in the future. You can use financial forecasting to:

- Take an educated guess of how successful a new product launch might be

- Decide whether to take specific financial actions, such as hiring more employees, giving raises, or leasing new office space

- Solicit funding from investors or loans from banks

There are two types of financial forecasting:

Qualitative, which compiles expert advice to make a financial assessment

Quantitative, which looks at financial reports and past performance from your own company and competitors to deliver a fact-based forecast

When Quantitative Forecasting May Not Work

It might seem, at first glance, that quantitative financial forecasting is more accurate. But that isn’t always the case. For instance, if you run a start-up business and don’t have historical data, you won’t be able to make an accurate quantitative forecast. Approximately three years  of data is required for accurate financial forecasting.

If you are launching a product or service that is very different from anything your company has done previously, quantitative financial forecasting may not be accurate, either.

Finally, in times of an economic downturn or recession, financial forecasting methods may fall flat. However, using time series decomposition to adjust for trends and seasonality, as well as business cycles, may create more accurate financial forecasting.

Qualitative Forecasting

Qualitative forecasting  can be costly, but can provide more accurate results in some cases, including the above or if you are attempting to forecast in rapidly changing fields, like technology, or make forecasts beyond two to three years into the future.

Neither type of financial forecasting is “simple,” but the benefits to your company far outweigh the expenditures. [A financial forecast, even if it’s inaccurate, is still better than having no information at all.

A financial controller can help you choose the right type of financial forecasting, and organize it in such a way that you can get the information you need to make the smartest decisions for the future of your business.

The Department of Labor Bureau of Statistics notes that the turnover rate for bookkeepers is higher than for many professions. This is good if you’re looking for a job as a bookkeeper — and bad if you are a business owner trying  to find, hire, train and retain a quality bookkeeper.

Your bookkeeper is one of the most critical people in your business. The bookkeeper is privvy to the company’s financial standings, and usually has access to all accounts,  checks and possibly even clients. For  this reason, it’s important to find an individual who is trustworthy, beyond having the basic bookkeeping credentials.

Finding the Perfect Part Time Bookkeeping Staff

Let’s really dream big. What would your ideal bookkeeper look like? Perhaps you wouldn’t have to pay him or her for full-time hours — you could call only when you needed to perform specific tasks, including financial reports and cash flow statements. After all, your company is growing fast, but you don’t yet need full-time bookkeeping services or the additional expenses that entails.

In addition, your ideal bookkeeper is not only trained in the GAAP principles of accounting and able to maintain accurate records, but can act as a trusted partner in your business. With CPA credentials, this part time financial controller can help you analyze data and act as a sounding board for the decisions that keep your company running well.

Finally, your bookkeeper is fully trained in your choice of bookkeeping software, whether that’s QuickBooks or another program.

As an added bonus, you don’t have to pay benefits for this bookkeeper, unemployment insurance, or find a semi-private space in your already crowded offices for the bookkeeper to work. You don’t have to supply them with a computer or pay any overhead.

Sounds good, right?

Part-time Bookkeeping Staff through The Controllership Group

This description of the “ideal bookkeeper” might sound too good to be true — until you realize it’s exactly what you’ll get when you outsource bookkeeping services through The Controllership Group.

- Our bookkeepers work from home and are employees of our firm, not yours, so you don’t have to pay any overhead or benefits

- We hire, train and run background checks on our bookkeepers, and then assign the right bookkeeper to you based on your businesses needs

- Our staff includes qualified CPAs that provide controllership services, business coaching and financial forecasting for your business

We know you have a lot to think about when you’re running a business. Why not let us deal with hiring and managing your bookkeeping staff?