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Author: Jake Snelson

What to Do When You Receive Feedback

How to Grow Your Business: Customer Feedback

Your customers can help you to know how, when, and where to grow your business. Gathering customer feedback and listening to how your customers feel about your products, services, and brand can help you quickly identify what you are doing right and where you can improve.

When gathering customer feedback, you’ll want to make sure you get raw, unfiltered opinions.

Here are some ways you can encourage your customers to give you feedback:

Surveys

Whether a survey be given via email or phone, this can be a great way to get guided feedback from your customers. When determining survey questions, be aware of how you frame them. Make sure they aren’t loaded to sway feedback one way or the other. Questions should be open ended: vague enough so that the customer can freely give their honest thoughts, but specific enough that a customer can give feedback about a specific product/service/topic.

Social Platform Reviews

If you have a business page on Facebook or your business is listed on Google, your customers will be able to leave you reviews. Encourage your followers to review your business online. Try to address each review—good or bad—by responding professionally. When you engage with reviews online, it shows your current and potential customers that you are responsive and care about what they have to say. If a customer leaves a review that is vague or unclear, don’t be afraid to respectfully ask for more feedback or clarification.

Other Review Platforms (Yelp, Angie’s List, etc.)

There are many other platforms that allow customers to leave reviews about your business. Be aware of all the places customers are reviewing your business. Be as responsive as possible with these reviews to show your customers you really care.

Host an Event

If you have a new product or location making a debut, host an event where customers can get an exclusive sneak preview. You’ll be able to gauge initial thoughts on a small scale and course correct from there if needed.

Incentivized Feedback

With any feedback channel, you can incentivize customers to give reviews or take surveys by offering free products, gift cards, discounts, or services. This creates a goodwill gesture in the eyes of the customer and you’ll be able to get a larger quantity of feedback.

Incentivized Feedback

What to Do When You Receive Feedback

Now that you have customer feedback, what do you do next? Firstly, take a look at the overall sentiment towards your brand. Is it positive or negative? Remember to take negative reviews with a grain of salt. People are more likely to complain if they had a bad experience. Next, look for any trends. Do people really like a certain product? Do people rave about the quick response time when they have questions? Do people dislike that they have to wait 3 weeks for an item to be shipped? Take a piece of paper and make two columns—positive and negative. Categorize these trends. For the positive trends, keep it up and consider how you can expand on what you are doing well. For the negative trends, think of ways you can combat bad experiences in the future. You can also look for trends in things like age, gender, demographics, etc to better define your audience.

Customer feedback can dramatically improve your business. So, gather as much of it as you can!

Frequently Asked Questions

1. How can I ensure that the feedback I get from surveys is honest and useful?

To get honest and useful feedback, make your survey questions open-ended and avoid leading questions. Frame questions in a neutral manner to allow customers to express their true opinions without bias.

2. What should I do if a customer leaves a vague or unclear review on social media?

Respond professionally and ask for more details or clarification in a respectful manner. This shows you care about their feedback and are committed to understanding their experience better.

3. How can I encourage customers to leave reviews on various platforms?

Encourage customers to leave reviews by reminding them through email, social media, or in-person interactions. Offering incentives like discounts or gift cards can also motivate customers to provide feedback.

4. What steps should I take after receiving customer feedback?

Analyze the overall sentiment and look for trends in the feedback. Categorize feedback into positive and negative trends, and use this information to enhance your strengths and address areas for improvement.

5. How can hosting an event help me gather valuable customer feedback?

Hosting an event allows you to present new products or services and get immediate reactions from attendees. This provides direct, actionable feedback on a smaller scale, which can guide improvements before a wider release.

How To Know If Your Small Business Needs an Accountant

How To Know If Your Small Business Needs an Accountant

When you’re starting out as a business owner, you’ve got to be scrappy. There’s no shame in trying to save a few dollars by managing multiple aspects of your business yourself. However, as your business grows, you’ll find that an endless list of “to-dos” makes it hard to do it all. You may find yourself dropping balls that shouldn’t be dropped.

The accounting side of your business is easy to fumble—especially if your mind is on a million other things. If you don’t have the time to devote or you don’t know what to look for, you could be making mistakes that drastically impact your business.

Risks of Being Your Own Accountant

Incorrect Data Entry:

When you’re busy, rushed, or distracted, it’s easy to enter incorrect data into your books. 

Missed Deductions:

Because you’re a business owner and probably not an accountant, you may not know all the things you can deduct. Missing deductions costs your business money.

Missing Revenue:

Incorrect books can cause you to have revenue that is unaccounted for and you may never know.

Unpaid Invoices:

When your books are not in order, you may not notice an unpaid invoice—by you or someone who owes you.

Underestimate Tax Bill:

When it comes to paying taxes, no one likes to be surprised by a larger number than what they were expecting. Incorrect books can cause a miscalculation and underestimation of your tax bill.

Reporting is Unreliable:

How can you make business decisions with incorrect data? When your books are wrong, your reports will be too.

There are potential risks of DIY-ing your accounting, so how can you determine when the risk of being your own accountant becomes too much? When do you know it’s time to hire an accountant?

When you have no time.

When your schedule becomes too full to handle, you may find the need to delegate tasks to others to lighten your load. By investing in accounting services, you’ll be able to hand off the detailed job of bookkeeping to someone who can focus on it and get it done quickly and correctly. This way, you can spend your time worrying about other important things—like growing your business.

Risks of Being Your Own Accountant

When you don’t know what to do.

You may have tried being your own accountant, but question after question kept coming up.  When you feel as though you don’t have as much knowledge on bookkeeping or business taxes to confidently manage your business’ books, you have two options: learn it or delegate it. By hiring an accountant, you’ll be able to benefit from their in depth knowledge and know that your books are being taken care of. 

When your books are messy.

If your books are unorganized, you could be making costly mistakes for your business. Things like missing revenue, unpaid invoices, and tax deductions all directly impact your business’ revenue. Having well kept books also ensures that you can pull correct reports—which help you to make data driven decisions about your business.

The decision to hire an accountant depends on where you are in your business, but remember—accountants exist to help you keep track of (and save) your business’ money. If you feel like you’re in over your head, it may be time to hire someone to tackle your bookkeeping for you.

FAQs:

1. What risks come with being your own accountant?

Common risks include incorrect data entry, missed deductions, overlooked revenue, unpaid invoices, and underestimating tax bills.

2. How does having incorrect books impact a business?

Incorrect books can lead to unreliable reporting, hindering your ability to make informed business decisions based on accurate data.

3. When is it time to hire an accountant?

Consider hiring an accountant when you lack time to manage your books, feel uncertain about bookkeeping tasks, or find your business’s financial records are messy and disorganized.

4. Why should I delegate bookkeeping tasks to an accountant?

Delegating to an accountant ensures that detailed bookkeeping is handled quickly and correctly, freeing up your time to focus on essential aspects of growing your business.

5. How can an accountant help if I don’t have much knowledge about bookkeeping or taxes?

An accountant brings in-depth knowledge to manage your books effectively, providing expertise in navigating complex aspects of business taxes and bookkeeping.

Choosing the Best Location for Your Business

Choosing the Best Location for Your Business

Choosing the Best Location for Your Business

A good location can make or break your business, and that can be a lot of pressure on you as a business owner. There are many factors to think about as you are choosing a location. From monthly lease price to volume of walk-by traffic to the ambiance of the building, each detail of your location can help your business to grow. How do you know if a location will help your business to thrive?

Here are a few tips for choosing a location for your business:

Ask Around

If there are other businesses in the area, pay them a visit. Notice the number of customers, the quality of the buildings, and talk to the workers about their experiences. If you can, talk with the business owner to try to get a candid view about how the location works for them. If a business owner is unhappy with the location, ask them for specifics. The more details you can get the better.

Accessibility

How easily can your customers get to you? Is the commute to your location difficult or confusing? Is there enough parking? These are all questions you should ask yourself when scouting out a location.

Competitors and Complements

Look for direct competitors in your area. These competitors may split the market around that location. You should also look for businesses that complement your products or services. For example, if you were opening an ice cream shop, a complementary business may be a bowling alley, roller rink, or any popular place where people might work up an ice cream craving and are already out doing something enjoyable.

Gather Data

Find out information about the demographics, crime rate, and economic statistics of the area. Reach out to local councils to find out more about future development and plans for the area.

Read the Fine Print

When looking into different locations, try to review the lease agreement sooner rather than later. Check for things like hidden fees, deposits, and any other financial information. This will help you to stay within budget and be aware of any charges you may be responsible for.

Frequently Asked Questions

1. How can I determine if a business location is right for my needs?

Visit nearby businesses and observe customer traffic. Speak with workers and business owners to get a candid view of their experiences. This helps gauge the potential success of the location.

2. What should I consider regarding accessibility when choosing a business location?

Ensure your location is easy to reach, with a simple commute and adequate parking. Accessibility is crucial for attracting and retaining customers.

3. How do competitors and complementary businesses impact location choice?

Look for competitors that might split the market and complementary businesses that can drive more traffic to your location. This synergy can boost your business.

4. Why is gathering demographic and economic data important when selecting a location?

Understanding the area’s demographics, crime rate, and economic statistics helps you assess the potential customer base and future growth prospects. Local councils can provide valuable information.

5. What should I look for in a lease agreement for a business location?

Review the lease agreement carefully for hidden fees, deposits, and other financial obligations. This ensures you stay within budget and are aware of all costs involved.

What To Do After

What To Do After Filing a Tax Extension

During tax time, it goes without saying that pulling together the receipts and invoices, filling out the paperwork, and making sure you’ve got all your deductions lined up and in a row takes more time than you think. As we near the tax deadline, you might be thinking that it’s time to consider filing for a tax extension. And that doesn’t necessarily have to be a bad thing. Here are a few reasons why filing for a tax extension could be a huge benefit to you and your business:

  • you gain 6 months to file
  • relieve the stress of pulling it all together by the tax deadline
  • more time and less stress means you’ll make less mistakes and not forget any important pieces to the financial puzzle
  • you’ll be able to find missing info or verify things that may seem inaccurate

If you owe taxes and you aren’t able to pay them, we highly suggest that you don’t file for a tax extension. Tax extensions only give you extra time to file, not extra time to pay so you’ll want to make sure that you make any payment in the amounts that you think you may owe when you file for your extension. If you’ve got questions regarding your specific tax situation, we’d be more than happy to answer them. 

What To Do After You File For Your Tax Extension

Once you’ve decided that you can benefit from a tax extension (and it’s for the right reasons), it’s time to make sure you’ve got your bases covered. You’ll complete the tax extension paperwork and submit it to the IRS, but you’ll need to make sure you take care of a few important aspects once you’ve finished submitting your tax extension.

Read more on how to make sure your tax extension request is a success…

What Is Revenue?

What is Revenue? | DIY Tax & Accounting for Small Business & Entrepreneurs | Mazuma USA

What is Net Profit?

What is Net Profit? | DIY Tax & Accounting Advice for Small Business & Entrepreneurs | Mazuma USA

Income Statement

What Is an Income Statement?

We work with small business owners and entrepreneurs. Some are seasoned, others are just growing their side hustle. Their skills are varied and they have a wide variety of talents. We often get asked to explain the ins and outs of financial reports and have found that providing our favorite clients with a working knowledge of accounting terms is helpful. With that end in mind, we’re sharing that expert knowledge with you. So if you’re looking to get a better grasp on your small business books, want to understand your financial reports so you can make better business decisions, or even are just starting out and want to do it right… you can check out our word of the week and start expanding your working financial knowledge.

What is an income statement?

An income statement is a report of your business’s profits and losses over a specific period of time. You might also hear people refer to this report as a profit & loss statement or a P&L. When it comes to financial reports, an income statement is one of the 3 main reports you’ll want to review on a regular basis. The reports you’ll want to have on hand are:

  • an income statement
  • a balance sheet
  • a cash flow statement

One of the main things your income statement shows you is the profitability of your business. It outlines your business’s sales and net income or loss after accounting for your expenses. You may have heard people say something about the “bottomline” – well, this is the report they’re referring to. The bottom line on the income statement tells you if you have a net income or loss for the time period the report covers.

How to Put the Info From Your Income Statement To Use

You may be thinking this is all fine and good, but what are you supposed to actually do? Well, that’s a good question that definitely deserves an answer. Seeing an income statement, or multiple statements that cover consecutive or year after year time periods will help you pinpoint what is making your business profitable or have a loss. You can also use your income statements if you’re looking to secure a loan or investors for your business. The biggest help comes when you look at multiple statements and can track the financial activity for your business. You can see if you have seasonal slumps, and even figure out if you need to take a look at and adjust your budget to improve your overall financial health.

Do I File Self Employment Tax on My Gross or Net Income?

Self Employment Tax. If you’re a new business owner or you’re looking to DIY your taxes this year you’ve probably got questions regarding your self employment tax and whether you should file it on your gross or net income. We’ve got the answers below.

Figuring out the ins and outs of taxes can be tedious if you’re a small business owner. Standard or line-itemed deductions, self employment tax, and a myriad of other accounting terms are frequently asked questions around our offices by clients who are trying to get ahold of their financial standing and file their taxes. Then you add in the rush of the tax season and that looming deadline when all paperwork needs to be in to the IRS and the idea of taxes and those detailed forms can bring outright panic.

If you’re looking to DIY your taxes, we’d still like to help. And we bet you’d be more than happy for a little bit of FREE expert advice right? You’ll find quite a few important articles here on our blog, but if you’re looking for answers as to the differences between gross and net income and how to figure your self-employment tax, we’d be happy to oblige.

If you have specific tax questions and would like to chat – we’d love it if you dropped us a line. If you’re looking to learn more about self employment tax and how to handle it for your taxes this year, you can read more here. 

 

Help On Your Taxes

How To Tell If You Need Help On Your Taxes

It goes without saying that starting a business means you’re probably fairly good at DIY. DIYing is one of the best ways to save money when you’re starting out, and most small businesses don’t have terribly difficult taxes (to begin with).

But as your business grows, it’s time to start thinking about how to outsource so that you have time to focus on your passion – the reason you started it all in the first place. When it comes to taxes, hiring an expert will not only save you time, but it usually also saves you money. And that’s a huge win for a lot of small business owners who are seeing a lot of growth.

So how do you tell if you need help on your taxes or not? We’re glad you asked.

Things Are Simple

If you’re not itemizing your tax return and there isn’t anything too complicated going on with your finances, then it’s probably ok to just keep plugging and chugging with your tax software of choice. If you are looking to itemize your taxes, you haven’t been as consistent at bookkeeping as you probably should be (meaning that you have to make up a month or two or more!) or you’re looking to create more of a strategy when it comes to your financial plan then hiring an accountant is the right choice.

You Understand What the Forms & Software is Asking For

It’s true that we have plenty of clients that understand it all, but have chosen to enlist our help with their bookkeeping and taxes. Most of them find value in outsourcing to us because it saves them time and stress. However, if you find that you have more questions about what exactly the software is talking about or you find yourself googling a bunch of terms, it’s probably a wise bet that an accountant will not only make your life easier but make sure that you stay out of the IRS’s scrutiny as well.

You’re Looking To Take Things To The Next Level

If you’re looking to seriously grow your business or you’re wanting to take your side gig full-time, then hiring an expert is a good idea. With an expert you’ll get detailed reports and the information you gain there will be key in your success.

You Feel Like You’re Paying A Lot in Taxes But Aren’t Making a Lot of Money

It never feels like there’s enough money, but if you’re constantly worrying about the fact that you don’t have enough or you feel like you pay a ton come tax time, then it’s time to talk to an accountant. You might not be taking all your deductions, haven’t filled out the forms properly, or aren’t really being as profitable in your business as you think you are. Getting help with your taxes will be the first step in setting your business up for financial success and at the very least, you’ll probably be able to get a better tax return.

Is it time to get help your taxes? If so, we’d love to chat. 

Bookkeeping Habits

4 Bookkeeping Habits That Keep You On Top Of Your Task

Small business owners wear lots of hats. You’re a marketer, a creator, a production assistant, a salesman, and you’re also in charge of bookkeeping. Bookkeeping may not be the most exciting aspect of your business, but it’s pretty important. If you’re looking to learn how to up your game, you’ll find 4 habits below that will help you increase your bookkeeping skills and help you see your business grow.

Habit No. 1 – Work on Your Books on the Same Day, Time, & Place

It’s sage advice when it comes to creating habit, consistency is key. We’ve found that the most practical advice we can give when it comes to staying on top of your finances is to be consistent in overseeing them. We get that it might not be fun (although as accountants we might beg to differ) but getting into your financial on a regular basis will turn results faster than anything else. Depending on how much financial activity is happening, you may be able to go longer, but on average most small businesses should be working on their books weekly.

Set aside a specific day, time, and even place for reviewing your finances and making your books current. Sometimes that means coming in early or staying late at the office, or maybe you take your books with you to a favorite lunch spot or cafe. No matter what, start looking at this appointment as a moment where you can get a realistic snapshot of how your business is doing rather than just another hour where you’re forced to crunch the numbers.

Put all your Receipts

Habit No. 2 – Put all your Receipts (& Other Financial Stuff) in One Place

This habit is probably a no brainer, but you’d be surprised how often we hear new clients tell us that they’ll have to “look into that”. When we hear that phrase, we know that it probably means they’ll be searching around their office, digging in their filing cabinet, or scrolling through their inbox trying to drum up whatever invoices, paperwork, or receipts we’ve requested.

Putting all your receipts, invoices, & other financial records in one spot makes life easy. If organization is your thing, you might even try color coding the different paperwork types with folders, tabs in your inbox, or even the good old sticky note.

Habit No.3 – Record & Categorize Transactions Each Week

It’s not just enough to open up your files and review your cash flow. We get that the most tedious part of the job is recording and categorizing transactions, but it’s what will show you where your money is going and that’s what makes your business tick. Keep a folder if you’re got physical papers from transactions or merely note in your book the week you’re recording and then reference where the receipt or invoice can be accessed fi you’re working online.

Once it’s logged, don’t toss it just yet. Keep all paper work, both physical and digital in an easy to access, and labeled, location. You’ll need it come tax time and will want to hang on to it even longer so that you have it on hand in case you’re audited by the IRS.

Habit No. 4 – Review Invoices & Expenses

You’ve logged. You’ve categorized. You’ve looked at the cash flow. But now it’s time to put a little elbow grease into creating a strategy. If you’re new to bookkeeping you’ll spend the first few months just looking at what categories seem to have the highest expenses and which seem to bring in the most cash. Once you’ve got a handle on that, it’s time to start forecasting a bit. Review your invoices and future expenses. Are there months where you can push more sales? Can you last longer without ordering more supplies? The answers to these questions and more come through reviewing your invoices and expenses. So start looking at your books like you’re having a brainstorming session for growing your business. Then you can look to see if your new ideas are working in the months to come!

What other tips or habits do you find useful when it comes to bookkeeping for your small business? We’d love to hear them in the comments.

Review Invoices & Expenses

FAQs for Small Business Bookkeeping Habits

1. Why is consistency important in bookkeeping? Consistency in overseeing finances yields faster results. Set a dedicated day, time, and place weekly to review your finances for a realistic business snapshot.

2. How can I streamline receipt and paperwork organization? Centralize all receipts and financial records in one spot, employing folders, color-coding, or digital tabs for easy access and organization.

3. Why is recording and categorizing transactions crucial? Recording and categorizing show where money goes, vital for business. Maintain a folder for physical papers or note details for digital records, essential for taxes and audits.

4. What’s the significance of reviewing invoices and expenses? Beyond logging and categorizing, analyzing expenses helps strategize. Evaluate high expenses, profitable categories, and forecast future cash flows for business growth strategies.

5. Any additional bookkeeping tips for small businesses? Share your useful bookkeeping tips or habits in the comments to foster a discussion on effective small business financial management.

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Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.

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