Crazy to think there are only two more weeks until Christmas and only three more weeks left of 2023. There’s a lot of joy still to be had and opportunities for your Ocean County business to increase revenue

On the other side of that coin, though, rising costs and the Fed’s interest rate hikes have made it extremely difficult for some businesses to stay afloat. 

Inflation alone has negatively affected the cash flow of 48 percent of small businesses in the last six months nationwide. And businesses in some sectors are struggling to hold up to the challenge — tech startups are especially crumbling right now. Also, 40 percent of small businesses reported this year that limited or inconsistent cash flow was their top financial challenge.

So if you would place yourself in that group, you’re not alone.

This is not a new problem historically, and the start of a new year is when businesses are typically thinking about how to fix it proactively. I’ve watched many, many South Jersey businesses over the years struggle through the cash flow crunch, and some of them fail because of it. Inflation is only accentuating the battle for available funds to pay bills, make investments, and meet payroll.

I’ve shared many financial strategies to achieve positive cash flow with these struggling business owners over the years, and today I want to share some with you. If you want to discuss this more thoroughly in the context of your own books, set up a time to talk:

Let’s start here…

Achieving Positive Cash Flow For Your Ocean County Business’s Health
“You must gain control over your money or the lack of it will forever control you.” ― Dave Ramsey

Cash flow management is a daily exercise in a small business, and the goal is always to achieve positive cash flow. That is to say, there is more cash coming in than going out. If you’re reading this article, you’re probably not there.

And that’s a problem because if you want to grow a sustainable and healthy business, you need positive cash flow (extra cash) to do that — for inventory purchasing, equipment, and technology upgrades, additional staffing, marketing and advertising, and on and on. You know exactly what I’m talking about because your own list of needs is perpetually hanging over your head.

Where to start?

Cash Flow Statement & Forecasting
If you don’t have one of these in your repertoire of data reports, this is a great place to start. This report summarizes the cash coming in and the cash going out during a given period. In its simplest form, a cash flow statement represents this basic equation:

Cash on hand minus expenses equals cash flow

However, a cash flow statement is limited in that it doesn’t take into account future transactions. For businesses that are dependent on seasonal dynamics, as one example among many, cash flow forecasting is essential.

Cash flow forecasting is what its name implies: a tool to estimate future income so you can fulfill obligations, anticipate expenses, and establish a realistic plan for growth.

Without the data that these reporting tools provide, the tendency is to make uninformed decisions about how much to increase prices and which expenses can be cut (marketing is typically the first to get prematurely slashed). 

Cash Flow Scenarios
One of the ways an accountant can help you achieve positive cash flow is by building out various future scenarios and establishing how to respond. Let’s look at a few examples.

Scenario 1: Late-paying customers
You’re facing a cash flow crunch because some of your clients consistently pay their invoices late, causing you to struggle with bills and payroll.

Possible lever to pull: Implement clear payment terms and follow up

Start by more clearly outlining payment terms on invoices, specifying due dates and late payment penalties. Follow up promptly when invoices are overdue. (Automated invoice reminders can help streamline this process.) You could also consider offering discounts for early payments to incentivize prompt settlements.

Scenario 2: Seasonal revenue fluctuations
An ice cream shop in a beach town, a snow plowing service, a farming operation, a mowing and landscape management company, or any business experiencing a significant drop in revenue during their off seasons.

Possible lever to pull: Diversify offerings and build reserves

During the off season, introduce new services or products. It’s also crucial to set aside profits during the peak season to cover expenses during slow periods.

Scenario 3: Excessive inventory
Your excessive inventory is tying up capital, leading to cash flow constraints.

Possible lever to pull: Optimize inventory management

Closely monitor inventory turnover rate and adjust purchasing accordingly. Consider running clearance sales for slow-moving items or bundle products to encourage sales. Implementing inventory management software can also help in maintaining the right stock levels.

Scenario 4: Unforeseen expenses
Unexpected costs strain cash flow.

Possible lever to pull: Emergency fund and financing options

Having an emergency fund in place can be a lifesaver in such situations. Set aside a portion of profits for unforeseen expenses and explore financing options like a business line of credit to cover immediate costs while preserving cash flow.

The freedom that positive cash flow can provide allows you to tackle other issues of financial business health: increasing savings, reducing debt, or expanding into new markets. Let’s work through your scenarios and start creating solutions:

We’re with you,

Kevin Duffy

The post Achieving Positive Cash Flow For Your Ocean County Business’s Health first appeared on Tax Wealth & Financial Services, Inc..

The post Achieving Positive Cash Flow For Your Ocean County Business’s Health appeared first on Tax Wealth & Financial Services, Inc..

The end of the year, that is. That means that for your Ocean County business’s financial reporting, this is go time.

Now that we’re into December, time is short to take care of your year-end accounting. This is something we specialize in so be sure to get on our calendar to set up your EOY bookkeeping clean-up:

Making time to look at your books before January 1 allows us to help you make last-minute adjustments that will help you be prepared in the new year. Things like reviewing financial statements, delayed or accelerated purchasing, and updating your business insurance policies can all make a big financial impact IF you know where you are going to be sitting on December 31st.

Another of those areas is payroll reconciliation. There are a number of items to pay special attention to this month to help you prepare to run year-end payroll. I’ve got a payroll reconciliation list for you.

[Reminder: Though this article does involve some tax-centric elements, we here at Tax Wealth & Financial Services Inc. don’t focus on taxes, but with payroll-focused topics, it’s essential to address some of these elements.]

Important Tasks For Your Ocean County Business’s Year-End Payroll
“Don’t be a time manager, be a priority manager.” ― Denis Waitley

You as an employer will need to meet multiple payroll requirements for your business before year-end. So set aside time this week to take care of this list, or set up an appointment so we can do it for you.

First, there is some information to verify for your year-end payroll reconciliation process.

• Employee information – Make sure you have the correct contact info for your employees before issuing W-2s next month.
   
• Paycheck records – Are all pay periods documented? If you paid outside of the normal schedule for reimbursements, commissions, or bonuses, make sure that’s recorded.
   
• Tax rate changes – Check in with your tax professional to see if 2024 will bring new tax rates or wage bases for you to follow at both the federal and state level. Make sure your software will account for any changes after the new year rolls over.

Before you run your year-end payroll, determine if additional payments need to be issued.

• Unused PTO – If you offer paid time off (PTO) to your employees, tally up their used and remaining PTO balances. Depending on your policy, ask employees if they want to save their PTO or receive cash for it. If you have a use-it-or-lose-it rule, let them know the deadline to use their PTO. (And remember to follow your state laws on PTO payouts.)
   
• Paycheck for your kids – If your kids work in your business, it’s more advantageous for them if you pay them as an employee instead of an independent contractor. Besides the fact that the IRS is cracking down on independent contractor classifications, setting them up as an employee means they pay less in taxes and might not even have to file a tax return. (In 2023, if you pay your child less than $13,850, they don’t have to file a return as an employee. But if you pay them $600 or more as a contractor, they have to file.)

  If your child is under 18 and working for your sole proprietorship, neither of you has to pay Social Security and Medicare taxes. If they’re under 21 in that situation, you don’t need to pay federal unemployment tax either.
   

• Paycheck for you – If you run a profitable S corp, it’s important to give yourself a sufficient salary by the end of the year. The IRS knows that S corp owners will take distributions instead of salaries to avoid payroll taxes. So they can (and will) come back to you and say that all your income is subject to tax. (Note that there are exceptions to the salary requirement if you don’t work FT in your biz or if your biz is in financial decline.)

And when you’re ready to run your final payroll of the year, be sure to account for bank holidays and then run one last payroll reconciliation audit to make sure all information will be reported properly on W-2s.

I mentioned this at the beginning, but know that these kinds of things are our bread and butter. If your South Jersey bookkeeper or your business’s payroll department isn’t prepared to handle your year-end payroll reconciliation needs, do reach out.

Looking out for you,

Kevin Duffy

The post Important Tasks For Your Ocean County Business’s Year-End Payroll first appeared on Tax Wealth & Financial Services, Inc..

The post Important Tasks For Your Ocean County Business’s Year-End Payroll appeared first on Tax Wealth & Financial Services, Inc..

The plot to one of the most iconic Christmas movies of all time, Christmas Vacation, centers on one holiday hope: the year-end bonus.

Clark Griswold, as “the last true family man”, decides he will use his promised year-end bonus to install a pool in his family’s backyard. When the dream fails to materialize, Clark gets upset at his boss and explains how he was planning on the bonus for his big family gift.

The point is clear: Don’t plan on a holiday bonus — that you don’t know is coming — for the bulk of your giving.

But the plot presents an interesting question for Ocean County business owners: to give year-end bonuses or not to give? 

It’s not my place to tell you what you should or shouldn’t do. However, if you do decide to give year-end bonuses to your employees this year, keep the following in mind…

Will Your Ocean County Company Be Giving Year-End Bonuses?
“New Year’s Day is every man’s birthday.” -Charles Lamb

Chances are, if you’re just now thinking about bonuses, it might be too late. (But with Amazon, I guess there is still hope). Yet with 2024 on the horizon, you can begin with 2024’s holiday gifts in mind. It really is important to factor in year-end bonuses at the beginning of the year so that you can budget and plan accordingly. In addition, you’ll want to consider questions such as:

• Who on your team will receive bonuses?
• Will the bonuses be the same across the board or differ based on merit?
• How will you present the bonuses to your employees?

If you don’t have a solid system for year-end bonuses, your budget might take a hit.

Budget Accordingly
When you think of budgeting the bonus, don’t just think in terms of cash bonuses.

Many employees, although happy with cash-based bonuses, also appreciate other gifts like vacation time or additional time off. Even a couple options like that require you to budget accordingly, so make sure you’re thinking ahead. Your employees will thank you for it.

If You Can Swing It
A lot of small businesses don’t hand out bonuses every year. But it might just be something you can work into your budget… and the perfect time to spread some holiday cheer among your team. The great thing about bonuses is that you get to decide. No need to go overboard. Just remember:

• Employer’s Payroll Taxes. Depending on what your employees make annually, you’ll have to chip in the employer’s share of FICA. It’s roughly 7.65% of the bonus, so like $765 on a $10,000 bonus.
• Employee benefits tied to compensation. This covers any contributions you make to your company’s retirement plan for your team.

A little generosity can go a long way in boosting team spirit and showing your gratitude for all the hard work your employees do throughout the year.

Make It Legal
This one is thicker than it seems, but there are legal ramifications tied to your year-end bonuses — in short, these gifts are not tax-free. It’s illegal to withhold taxes from such gifts.

Federal income tax, Social Security, and Medicare all take a chunk from bonuses. But you have options. Among them is to round up taxes so that, after taxes are withheld, your employees receive the actual amount you intended to give in the first place. 

And make sure you report bonuses on W-2 forms accordingly. The IRS needs to know about your efforts as the best boss ever, so don’t forget to include bonuses on each of your employees’ forms. But remember, if your “year-end” bonus isn’t received by an employee until January, don’t mark it down on their 2023 W-2 form. Again, you can give me a call if you have any questions in regard to bonus taxes.

As I mentioned before, I won’t tell you if you should give out bonuses or not. 

Is it a way to give back to your South Jersey employees for all their hard work? Yes. Does your business budget mean sometimes you need to cut back? Of course. Whatever you choose, just make sure you regularly convey how much your employees mean to you. 

And not just during the holidays.

Helping you with every decision,

Kevin Duffy

The post Will Your Ocean County Company Be Giving Year-End Bonuses? first appeared on Tax Wealth & Financial Services, Inc..

The post Will Your Ocean County Company Be Giving Year-End Bonuses? appeared first on Tax Wealth & Financial Services, Inc..

Does your Ocean County family sit around the table at Thanksgiving dinner and share something they’re thankful for?

I’ve been at those holiday meals many a time. I appreciate the intent, and will admit it’s usually effective in getting me to feel more grateful, but I do wish those hosts would generally restrict the “I’m thankful for” conversations for the end of the meal.

“Some like it hot,” as they say on Broadway. It definitely tastes a lot better that way.

I’m joking (kind of), but gratitude IS the sort of spirit I try to share this time of year. Taking time to notice the good things is one of the chief benefits of the Thanksgiving holiday, and I want to dwell on it in spite of all the garland and reindeer and sale signs going up in early November distracting me away from thankfulness and toward consumerism.

So let’s pause for a minute, can we? There’s plenty of time to indulge in consumerism the rest of the year.

“Acknowledging the good that you already have in your life is the foundation for all abundance.” – Eckhart Tolle

I think that quote applies particularly well to business owners. Building a business is really hard, as you know, full of highs and lows. The burdens can be so overwhelming that you’re tempted to quit, and more than once. 

Dwelling on what HAS gone well is worth the effort to move your mind out of those “never” and “always” statements that so quickly lead you down a dark road.

So here’s my move toward thankfulness this week…

I’m thankful for the people who have helped me along in my business journey. From its earliest beginnings, I’ve had colleagues and clients and partners and friends who have believed in me and helped make a way for me to build this business into what it is today. 

What about you? 

I encourage you to share your thoughts of thankfulness and stories of good times with your staff and team this week as well. 

If done sincerely, it will go a long way.

Whatever financial or other difficulties you and your South Jersey business have experienced this year, find some space for thankfulness as a team. In tough times, there are good things hidden, and in good times, there might be worries lurking. If you can find and enjoy the good stuff, it’ll help you and your team do well, even when things are hectic and stressful.

Getting in the spirit of thankfulness,

Kevin Duffy

The post Practicing Thankfulness in Your Ocean County Business first appeared on Tax Wealth & Financial Services, Inc..

The post Practicing Thankfulness in Your Ocean County Business appeared first on Tax Wealth & Financial Services, Inc..

Before the holiday craziness kicks in, let’s remember: the end of the year is a golden chance to play with the calendar in your business’ favor.

Whether it’s diving into year-end profit metrics, sorting out staff bonuses, or launching some targeted marketing to catch those year-end spenders — now is the time to zoom in on tasks that set you up for success now and into the coming year.

Lock in your spot on our calendar soon, to make sure we have a chance to discuss how to best position your business:

It’s easy to get caught up in the day-to-day minutiae of running a business. However, it’s essential to resist the temptation to let small, less significant tasks overshadow the truly impactful ones. I’ve witnessed this phenomenon with a few of our clients, where the focus on routine administrative tasks detracts from addressing more substantial business goals (ones that really have leverage).

Maybe it’s the service coordinator getting lost in paperwork, or ticking off those sweet, sweet checkboxes in the software. Maybe it’s one of your employees not getting hung up on the loud-talker in the next room, or the chair that squeaks five feet away. We all need that reminder of what really matters in business.

So, here’s your reminder (and feel free to share it with your crew): Focus is everything. It gives our work purpose and turns the everyday into something extraordinary…

7 Essential To-Dos For Any Ocean County Business Team
“Sooner or later, those who win are those who think they can.” -Paul Tournier

What are the most important tasks in your Ocean County business? 

Taking care of customers and growing revenue. 

Add any trendy business philosophy you want on top of that, and it still gets down to the same thing. 

EVERYONE on your business team should either be adding revenue or helping to control expenses. I suggest you (constantly) ask your staff — and yourself — what they can do to help: 

1. Get more customers 
2. Keep customers longer 
3. Increase the amount of each transaction 
4. Control expenses 
5. Get more referrals 
6. Get good online reviews
7. Make operations more efficient

So, in that vein, here’s a discussion you can have at your next business team meeting: 

* Review and discuss these 7 issues 
* Ask everyone to write down the things that would help them do their job better (or obstacles that are in their way).
* Ask everyone to write down ideas for each of the 7 issues between now and the next staff meeting.
* Review everyone’s first draft privately or as a group in your next staff meeting.

Everyone (and I really do mean EVERYONE) in your business must be involved in growing revenue or controlling expenses. They must see their role in that part of the business. And YOU — the business owner — must keep that discussion alive and dynamic with your business team.

This is especially true when almost everyone is bound to be distracted by what’s on the horizon in 2024.

Now is the time to lead.

Warmly,

Kevin Duffy

The post 7 Essential To-Dos For Your Ocean County Business Team first appeared on Tax Wealth & Financial Services, Inc..

The post 7 Essential To-Dos For Your Ocean County Business Team appeared first on Tax Wealth & Financial Services, Inc..

Though the days are getting shorter and the weather is taking a turn, there are some great revenue reasons to get excited about the next two months.

As we round the bend into Black Friday territory (which for many began at the end of October), it’s time to get nimble with your business plans. We all know the power of the holiday season for boosting sales — revenue-increasing opportunities abound. Even if your business isn’t centered on retail, are there offers you can create to capitalize on Black Friday?

Finding ways to boost your revenue should have you jumping on seasonal moments in addition to careful planning and execution of your business goals. 

These decisions can make a big difference in your Ocean County business’s bottom line. So, let me ask you…

How many “Yeses” can you answer? 

1) I have a financial statement for my business that’s no more than 30 days old.

2) I reviewed my financial statement with my bookkeeper or accountant within the last month to pinpoint the potential trouble spots and identify opportunities for increased cash flow. 

3) I know exactly which products, departments, and services give me the highest ROI. 

4) I have a year-end business strategy based on my figures to date. 

5) I know how much cash I have and how much I will need next week. 

The reason I ask you to consider these questions is that I have seen far too many businesses come to a sputtering halt because their decision-makers didn’t have clarity about what the numbers should be telling them… and what they should do as a result.

They were likely making one of these three very common accounting mistakes…

3 Fixable Financial Mistakes Sinking Your Ocean County Business
“Any idiot can face a crisis; it’s day to day living that wears you out.” – Anton Chekhov

These mistakes are common enough that most experienced accountants could fix many of them in their sleep (well, that’s not *exactly* true). And, sadly, they’re usually created by either inexperience on the part of the bookkeeper involved OR by lack of communication from the business owner.

Either way, here are common accounting mistakes, all of which we can help you clean up.

1. Expense Tracking (or the lack thereof) 
Too many business owners pay for expenses out of their own personal funds. And it’s no surprise that they often don’t keep accurate records of these expenses as a result. This very much needs to change if that’s you.

Here’s why: Co-mingling business and personal funds not only leads to a muddled picture of your finances, but it could also leave you vulnerable in the event of an IRS audit (they really don’t like mixing business with personal stuff). If you avoid doing it in the first place, you’re setting yourself up well moving forward.

That aside, you need to maintain effective communication between your bookkeeper and the rest of your team, be it yourself, or other staff. Essentially, your bookkeeper needs to make sure that everything is coded properly, or you’ll be in some hot water.

2. Spending, Spending, Spending (Cash Controls)
Your business should have a monetary “line in the sand” every month, the crossing of which should set off little alarms. These can range from the sophisticated (multiple trigger points and consequences), to the very rudimentary act of simply budgeting for each month.

But the main point is that your ACCOUNTING system should show you the way on this — on a monthly basis.

3. Not Keeping Up To Date
Sure, it’s painful to have to reconcile and keep every expense entered on a monthly basis — which is why so many business owners don’t keep up with it (even when they’ve “outsourced” the task to a part-timer). The problem with playing continual catch-up is that problems AND opportunities are spotted too late.

For example, say you think one of your service or product lines is the most profitable … but circumstances have changed (whether expenses or other cost factors), and now a different item is most profitable. Well, if you’ve been pushing for what you *thought* was most profitable for six months and only now realize that you should have been pursuing a different strategy, that’s a bunch of time and money wasted.

In short, get a reliable South Jersey professional to help you with this stuff. (Ahem.)

Here to help you,

Kevin Duffy

The post 3 Fixable Financial Mistakes Sinking Your Ocean County Business first appeared on Tax Wealth & Financial Services, Inc..

The post 3 Fixable Financial Mistakes Sinking Your Ocean County Business appeared first on Tax Wealth & Financial Services, Inc..

How much tipping is too much?

The drain on the consumer wallet right now is real. Everything costs more and everyone seems to be wanting more of your dollar. 

So, when businesses swivel that screen around with requests for 15, 18, or 20% tips on an order, it’s no wonder people have become less inclined to generosity. Where once the tip jar was a feel-good moment to give your barista an extra boost, it now seems more like a requirement. 

As a business owner who might be inclined to offer the tip screen post sale, it’s important to consider how you should respond to this. While tips are a normal expectation for some types of transactions, you might need to reconsider their role in your business’s transactions.

Since the holidays and a busier sales season are just around the corner, let’s talk about this important point of sale issue for your business right now.

Are Ocean County Consumers Exhausted by Tip Screens?
“Good customer service costs less than bad customer service.” ― Sally Gronow

Consumers are tired of tipping. A 2023 survey revealed that over half of consumers feel like they are being pushed into tipping when using tip screens at checkout, and a whopping 70 percent felt like they were asked to tip way too often.

Another survey showed around two-thirds of Americans have a negative view of tipping.

A lot of this sentiment is likely due to the once-voluntary pandemic-era practice of dropping a little extra in the tip jar. This originated out of goodwill for workers but is now an established part of checkout tip screens. Shoppers are getting asked to leave a tip in more and more situations where they previously wouldn’t have been expected to give one.

The question for companies utilizing tip screens like these is how tip fatigue might be impacting business. Are you losing customers over this?

It’s a question particularly important for those non-traditional tipping businesses, like retailers, quick service restaurants, self-checkout kiosks, convenience stores, and event counters. 

Should your South Jersey business use tip screens? 

Here are some questions to ask yourself to know how to respond to customers’ growing frustration and maintain customer loyalty.

1. Is your business in a traditional tipping industry?
2. Does your business employ tipped workers?
3. What are your customers’ preferences and habits?
4. Are your competitors asking for tips?
5. Do your tip screens address the privacy concerns of customers when it comes to who can view the screen?
6. Does your service quality merit a tip?
7. Is your suggested tip range appropriate for your industry?
8. Do your customers know where their tip is going?

Addressing these questions and adjusting your practices proactively may help tip you (yep, I said it) in a sustainable direction on this customer management issue long-term. 

With inflation in full swing, the customer relations boat is a bit tippy right now. (I just can’t help it.) We’re here to help steer you in the right direction.

We’re here with more than business tips. 😉

Kevin Duffy

The post Are Ocean County Consumers Exhausted by Tip Screens? first appeared on Tax Wealth & Financial Services, Inc..

The post Are Ocean County Consumers Exhausted by Tip Screens? appeared first on Tax Wealth & Financial Services, Inc..

Well, before I dive into today’s dose of real world business strategy, let me ask you, have you revisited your 2023 business goals and made a plan to reach them before the end of the year?

Goals aren’t a set it and forget it kind of thing. You’ve got to revisit them and focus your business efforts on reaching them. It’s easy to get sidetracked with other things that arise throughout the year. All the more reason why you should carve out a moment to look back on what you wanted to accomplish this year and find a way to refocus your efforts. 

OR… you might need to shift the goal to accommodate for unexpected twists. So, get to it.

(And if you need my assistance to help you get a better picture of where things are at and where they should be, reach out and set a time to chat. We’re in your corner and will make time to answer your questions, no matter what. (732) 910-9207)

But in the meantime, I wanted to push you toward a mindset that should drive your “tech stack” decisions: Is this software actually helping me grow my Ocean County business?

Too many businesses that I’ve seen fall into the trap of chasing the next shiny software-object, don’t evaluate it for its ability to drive profitability and sales (whether initially, or in an ongoing way).

So let’s consider that ubiquitous C. R. M. …

Harnessing Your CRM for Sales in Your Ocean County Business
“To pay attention, this is our endless and proper work.” – Mary Oliver

When you’re looking to drive success in your South Jersey business, choosing the right tools can propel your company from the sidelines to the spotlight. Part of that success is tied to the CRM platform you choose. When you choose a platform, it should be a CRM built for sales, one that maximizes those right tools for your sales growth.

But, the reality is, whatever CRM software you use (be it Keap, Salesforce, Copper, Pipeline, or any of the many others that are out there) can often drive you to frustration. The blessing and curse of these powerful CRM tools is that despite easy-to-monitor dashboards and metrics, there can remain an ambiguity about how it should be utilized to grow a business.

Now, my intent here is not to provide a comprehensive review of the various CRM platforms. I’ll leave that to the software experts. 

But what I would instead posit to you is that no matter which one you use, unless you are putting it in its proper place, you might be continuously frustrated, even if you flee to the greener pastures of the next, shinier CRM to come your way.

A CRM for sales
Think of the term itself: customer relationship management. Those “customers” are the ones keeping your lights on. And if you are going to spend money on a CRM tool, you might as well ingrain its importance for new sales into the minds of each of your team members.

There are obvious administrative and workflow advantages to using an established CRM for sales, but if it’s not driving a return on investment, why are you using a CRM in the first place?

Sustaining existing customer and prospect relationships is critical, but it’s important not to neglect the value of your CRM for guiding individual sales efforts, whether those happen in a store, online, over the phone or otherwise. It should lead to measurable quarter/year-end results. I’ll say it again: “C” should stand for sales … not confusion.

Collaboration fuels clarity
If you’re in sales, recognize you don’t have to play first base, shortstop and center field all at the same time. If your job is to play first base, then focus solely on that position and realize winning is a team effort. Sarah in marketing is a great shortstop. And John in IT loves playing center field.

Consider a regular “CRM meeting” with your team members who use it, and talk about how each department can use the data that it contains for producing new revenue.

Such a meeting should help form and develop a sales cycle.

How can your staff create a collaborative flow so that qualified leads enter your system? Marketing to the ideal customer is obviously of first importance (so make sure your marketing people are mining the right data from your existing customers in your CRM), your sales and support teams need to see contact histories, and your management needs to be able to evaluate various campaigns for profitability — all should be possible within your CRM systems. And all should work together to drive revenue.

(Because as your accountant — as much as I love to see you keeping your expenses down, I equally love to see you bring your revenues UP. Each drive profitability.)

Aye aye, Captain
Who is steering your CRM ship?

As important as your “on the ground” sales team is to your operation, those in sales management should provide direction and opportunities to grow because of the data you find within your CRM.

With the reports and metrics almost every good CRM tool provides, you or your managers can direct where their team should be focused from quarter to quarter. In addition, this person can help lead those regular CRM meetings and promote a collaborative environment.

Managers have an opportunity to empower employees to cross the finish line. And although it’s easy to plop someone in front of a Ferrari (CRM), it’s a lot more beneficial to first provide them with keys, lessons, and roadmaps so they can steer your business toward ROI.

Are you ready to get behind the wheel?

How does your business utilize your CRM for sales? I would be interested in which platform provides you good metrics. 

And as always, let us know if there is any way we can help. 

Eyes on the sales prize,

Kevin Duffy

The post Harnessing Your CRM for Sales in Your Ocean County Business first appeared on Tax Wealth & Financial Services, Inc..

The post Harnessing Your CRM for Sales in Your Ocean County Business appeared first on Tax Wealth & Financial Services, Inc..

I’m continuing to avidly watch, as I’m sure you are too, the unfolding events in Gaza. Though Biden issued a back-channel warning to Iran about not joining in the conflict, the possibility of a larger scale war looms. Economically, that affects gas prices and other factors of the global economy. Then there’s the national budget deadline and the Congress’s gridlock over finalizing it. 

It’s more important than ever to keep your Ocean County business doings sharp right now.

I’ll be here to keep you informed on how bigger happenings will affect your business… and to help you thrive through it. 

All of these headlines probably dominated your attention, and rightfully so, but there’s something else happening in October to give attention to: Cybersecurity Awareness Month. That might make your stomach twist, thinking through all you need to be prepared for within a budget. It can be daunting to know where to allocate funds for a pressing need that is so frequently changing and developing.

Because my office handles so much sensitive data, you better believe this is something we monitor and update systematically. 

Business spending for cyber network security is up 70 percent over the past four years, though that number has started trending downward and recent security company layoffs confirm this.

But recently issued SEC rules regarding the reporting of data breaches by public companies (more on that shortly) reemphasizes the importance of regularly addressing our own cyber network security measures as business owners.

So let’s talk about budget building for your cyber network security plan. 

Prioritizing Cyber Network Security in Your Ocean County Business
“The best investment you can make is in yourself.” ― Warren Buffett

There are new rules from the SEC regarding the reporting of data security breaches that go into effect December 15, 2023. While those rules primarily target public companies, small and private companies should know what’s being required as they review their own cyber network security measures, especially since the SEC has shown a willingness to extend its regulatory reach to private companies when it comes to cybersecurity.

Basically, companies need to assume that they might face real cyber network security threats and breaches. And when they do, they have to tell the SEC about it within four business days if it’s a significant incident. Plus, U.S.-listed companies also have to share information about how they handle cybersecurity in their yearly reports.

With all of this in mind, let’s discuss how to build a cyber network security budget for your South Jersey business.

Making a budget

When building (or assessing) a budget, know that there are three basic areas that drive the needle: software and hardware, ongoing security services, and in-house training for employees.

Of course you want top-notch protection for all your important stuff, but the reality is that you probably can’t afford it all. This is why budget planning is so crucial – it decides how much you can spend and where you should spend it.

Here’s a simple exercise: First, make a list of all your important assets. Then, think about how vulnerable each of them is to potential threats. In other words, figure out which assets are more likely to be a security risk.

Assets that are both high-risk and critical to business operations should get the lion’s share of your cyber network security budget. On the flip side, if something is low-risk and not that critical, you can allocate less money to protect it because the chance of a cyberattack is lower there.

And don’t forget a line item for incident response and recovery.

Factoring actual costs

Cybersecurity costs can vary a lot, and here’s why:

• Size and complexity: Bigger and more complex organizations need more resources to protect themselves.
   
• Risk level: If a company is at higher risk of a security breach, they’ll need to spend more to stay safe. How often and what type of security incidents a company faces can also affect costs.
   
• The cloud: If a company uses cloud services, they might need extra security measures like encryption and multi-factor authentication, which can cost more than traditional setups.
   
• Compliance requirements: Some industries have strict rules about cybersecurity, like healthcare and government organizations. Following these rules can be expensive.
   
• Outsourcing: When companies hire outside vendors for IT tasks, they need to make sure those vendors are secure.

Saving money where you can

Despite all the costs, there are inexpensive but high value measures you can put in place.

1. Begin by setting up basic defenses like firewalls, antivirus software, and regular software updates, if you haven’t already.
    
2. There are free or inexpensive tools available for things like managing passwords, spotting intruders, and checking for vulnerabilities.
    
3. Teach your employees about phishing, social engineering, and keeping data safe. It doesn’t cost much but can make a big difference.
    
4. Instead of hiring full-time staff, think about using managed services. They can help with security and monitoring at a lower cost.

Now, I get it, not all of these budgeting decisions will be crystal clear. So, it’s a good idea to team up with your Chief Information Security Officer and accountant (that’s me) to figure out what makes sense within your budget constraints. Reach out to talk through your budget potential in light of your particular needs:

Secure your assets and your future.

Kevin Duffy

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The post cyber network security first appeared on Tax Wealth & Financial Services, Inc..

The post cyber network security appeared first on Tax Wealth & Financial Services, Inc..

This weekend’s news coverage and social media scroll were dominated by reports of the awful things happening in Israel right now. It’s pretty difficult to swallow the images of violence and abuse being perpetrated by Hamas. And no matter how many times you hear about these kinds of things, it never gets easier. 

But even with difficult things like this, be mindful of letting your thoughts and feelings be dominated by the coverage. There will always be something to read and take in, but these things have a way of igniting emotions to a breaking point if they’re not regulated. 

And, as a business owner, you need to make sure a good portion of your energy is spent on what pertains to your business. 

Before I move on, let me also briefly address what you should do if you have an Employee Retention Credit (ERC) claim submitted to the IRS that’s been put on pause. The primary thing you need to keep in mind is that if you get faced with an audit about the claim, the IRS will want concrete evidence and documentation to support your eligibility. So make sure you have that in order. It’s your best defense against over-zealous investigators. 

So, on to what I want to discuss today. I wrote recently about some of the other paid time off policy options out there for businesses to offer besides the “use it or lose it” approach. A fellow Ocean County business owner responded to share how she was kicking herself for not having more clearly defined PTO payout rules in place in her own office. 

She had apparently found herself in a financial pinch when two of her staff resigned and opted to take their unused vacation days as paid time after their last day in the office. Because she had no PTO payout rules in place to govern when employees could take that benefit (her state doesn’t require payment of accrued vacation time upon separation), she opted to pay those staff members for their unused days to avoid potential legal confrontation over her vague vacation policy wording.

That’s a place none of us want to be in, especially because it’s entirely avoidable. So with that in mind, and as we’re rapidly approaching EOY, I’d like to show you some policies to make sure you have included in your official vacation benefit package.

A PTO Payout Policy Checklist for Ocean County Business Owners
“The biggest lesson I’ve learned by living a little is you should always put things in writing.” ― Richard Branson

Because PTO payout rules vary from state to state, you’ll want to start by verifying the local laws you’ll need to abide by first. You can find those PTO payout laws by state here.

Whether your employees get paid for their unused vacation days when they say their goodbyes depends on two things: your company’s policy and your state’s laws. Some states have specific rules about this, while others leave it up to the employer.

In most cases, it’s the company’s call. You decide whether or not to dish out some extra cash for those unclaimed PTO days when an employee leaves. But here’s my main point today – you need a well-defined PTO payout policy in place to guide this process.

I should point out that there’s technically no federal law that forces businesses to offer PTO to their workers. It’s not a requirement. But, let’s be real, offering PTO makes for happier employees and will help you attract better talent.

Now, if you’re thinking about creating or changing up your own PTO payout policy, here are some definitions and provisions to include:

1. How payout is calculated
You (the employers) are responsible for stating how PTO hours are tallied and calculated, while also withholding taxes according to IRS regulations. Vacation pay doesn’t always fall under the category of supplemental wages, but when it’s disbursed as a vacation payout, it becomes subject to a flat 22% supplemental income tax.

2. How to handle sick days
In 14 states and Washington, D.C., employees have the right to get paid when they’re sick. It’s a state thing, not a national one. So, think about whether you want to pay your employees for unused sick days when they leave.

3. Timing of payout
If you’ve got a policy for paying out unused PTO, there’s usually a deadline. Most times, it’s within 30 days after the employee leaves.

4. The reason for separation
In some states, it doesn’t matter if an employee gets the boot, gets laid off, or decides to call it quits – they still get paid for their unused PTO. But that’s not the case everywhere. Some places let you decide if the reason for their departure affects the payout. If your state doesn’t spell it out, make sure your policy does.

Now, this list isn’t comprehensive. There’s more to it, and that’s where an HR pro can lend a hand. They’ll make sure your South Jersey company’s policy abides by local regulations while also contributing toward a happier workplace.

To being prepared,

Kevin Duffy

The post A PTO Payout Policy Checklist for Ocean County Business Owners first appeared on Tax Wealth & Financial Services, Inc..

The post A PTO Payout Policy Checklist for Ocean County Business Owners appeared first on Tax Wealth & Financial Services, Inc..