Mazuma is now Vyde
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
Anytime is a good time to get your business into financial shape. And no matter what your financial shape is, it’s never a bad idea to review where you are and set some goals as to where you’re going. Today we’re sharing some top tips for getting your business finances in order, and how to keep them there.
It goes without saying that organized finances make life easier, especially come tax time. But that doesn’t always happen when you’re running a small business and are a jack of all trades. When it comes to organization, simplicity is usually the best option. Don’t spend a ton of time searching for elaborate methods or strategies but just get down to the basics. We’d recommend establishing a system for tracking expenditures and the money you receive, if you haven’t already. Then set aside time each week or month to review and organize these transactions.
If you’ve already got that part established, then look to the future. Take a few minutes and sketch out what big ideas or projects you have that might need extra cash. Mapping out a plan is the easiest, and surest way to get there – then all that’s left is to put the plan to work.
There are lots of options when it comes to how you do your bookkeeping and taxes. Whether you hire a professional bookkeeper, track expenses on your own, or use one of the many different financial software options that are out there it’s always a good idea to do your homework and make sure you have the right fit. Even if you already have a system in place, it’s never a bad thing to review what you have and what your needs might be. When your needs change, it’s time to consider your options and then make sure your most important needs are met.
Looking for other tips on getting your small business financially fit, you can read more here…
Why is staying organized crucial for small business finances?
Staying organized simplifies financial management, especially during tax season, and ensures accurate tracking of expenditures and income. Establishing a basic system for recording transactions and setting aside regular review time helps maintain financial clarity.
How can small business owners plan ahead effectively?
Small business owners can plan ahead by mapping out future projects or financial goals that may require additional funding. Creating a clear plan allows for strategic allocation of resources and facilitates progress towards long-term objectives.
What factors should be considered when choosing financial software or hiring a bookkeeper?
Considerations when selecting financial software or hiring a bookkeeper include the complexity of your business’s financial needs, budget constraints, ease of use, and compatibility with existing systems. It’s essential to research and assess options to ensure the chosen solution meets your requirements effectively.
Why is it important to periodically review your financial management methods?
Periodic reviews of financial management methods help ensure alignment with evolving business needs and technological advancements. Assessing current practices allows for adjustments or upgrades to better support efficient financial operations and decision-making.
Where can small business owners find additional tips for improving financial fitness?
Small business owners can explore resources and articles dedicated to financial management, accounting best practices, and business finance strategies. Engaging with reputable financial advisors or consulting industry-specific publications can offer valuable insights for enhancing financial fitness.
Whether you’re looking to set some goals or are thinking to up your game at the office we’ve got 3 habits that you should quit doing at the office – pronto. Changing habits is hard, but doing so can cause sparks that will ignite major change. Who wants to shake things up for the better? You do.
Remember that movie from the 80’s called Never Ending Story? We do too. Well, the never ending story of your childhood has turned into the never-ending quest to get your inbox to zero, and it’s not doing you any favors. For some reason we often hear that success comes from having things done, finished, perfect. Many workers feel like they’ve succeeded when their inbox is at zero – that they can now put up their feet and call it a day.
The problem? The inbox continues to fill up again and again and your efforts start to seem pretty trivial. In fact, cyclical jobs, like answering emails, can turn into projects that add unnecessary stress. So we say ditch the goal to empty that inbox.
If you do feel like you’ve got to dig in and tackle the inbox make a goal that says you’ll spend a good 30 minutes at the beginning of everyday in your inbox, or better yet, set up a strategy that you’ll take care of minor emails immediately and delete them and not look at your work email over the weekend – then stick to it. You’ll find your productivity increases and your feelings of failure, when you open a full inbox, fade away.
It’s easy to do. Back in our parents day office talk happened around the water cooler or in the break room. Nowadays it can happen everywhere, popping up on your computer in a chat window, showing up in your inbox, and dinging on your phone as a text message.
The amount of communication between co-workers has definitely increased and that often leads to less work getting done. When it’s really a problem is when the talk is negative. Negative thoughts never helped anyone and it’s obvious that such thoughts make coming to work a chore. In addition, negative comments between or about co-workers make it more difficult to get things done.
If you’re looking to increase your productivity, enjoy your job more, and be an employee that your boss can count on to work with just about anyone – start avoiding the negative talk in the workplace.
When it comes to talking success in business you’ve probably heard that “all successful people wake up before 5 a.m.” right? If you’re a night owl then, it looks like you’ll never be a CEO and probably not even that successful in your career.
Wrong.
When it comes down to it, our sleep patterns and circadian rhythms are quite possibly genetic. Meaning that our internal clocks aren’t something we can so easily control or force to fit a certain schematic. If you’re a night owl you might find that it’s easier to get things done with an extra hour late in the evening where others find that early mornings are when they’re most productive. A recent scientific study shows that our modern-day sleeping habits may be ancient survival tools. In the days when people lived in groups or tribes, a variety of sleep patterns meant that at least 1 person would be up and alert to protect the tribe – and that means that every person was important.
Instead of crossing that dream of being a CEO off your list because you’re a hardcore night owl, use your skills to your advantage. Stop fighting your internal clock (waking up early if you’re a night owl or staying up late if you’re an early bird) and start using your strengths to your advantage. Take a look at your day and then put tasks where they make the most sense for you – of course maximizing your productivity and creativity. Once you accept what you are and then use it to your advantage you’ll find that your success will follow.
What other habits, good or bad, would you add to the list? We’d love to hear your ideas in the comments.
Why should I stop trying to get my inbox to zero?
The quest to get your inbox to zero can be never-ending and stressful. Instead of striving for an empty inbox, set a manageable goal like spending 30 minutes a day on emails or handling minor ones immediately. This approach reduces stress and boosts productivity by preventing the feeling of failure when the inbox fills up again.
How can avoiding negative talk at the office improve my work environment?
Negative talk can create a toxic work environment and decrease productivity. By avoiding negative conversations, you can foster a more positive atmosphere, enjoy your job more, and become an employee who is reliable and easy to work with. This not only benefits your mental well-being but also enhances overall workplace harmony.
What if my natural sleep pattern doesn’t align with the typical work schedule?
Everyone has a unique internal clock influenced by genetic factors. Instead of trying to conform to a typical work schedule, identify when you are most productive and align your tasks accordingly. For night owls, this might mean working later in the evening, while early birds might focus on early morning tasks. Utilizing your natural rhythms can enhance your productivity and creativity.
How can I manage my email more effectively without aiming for zero inbox?
To manage your email effectively, set specific times for checking and responding to emails, such as 30 minutes each morning. Prioritize urgent messages and delete or archive minor ones immediately. Additionally, avoid checking work emails over the weekend to ensure a better work-life balance and reduce stress.
What are some strategies to deal with negative coworkers?
To handle negative coworkers, try to steer conversations towards positive topics or simply excuse yourself from negative discussions. Focus on your work and engage with colleagues who have a positive outlook. If negativity persists, consider discussing the issue with a supervisor or HR for a more structured resolution.
In our opinion there is nothing better than the feeling of a job well done. Starting a small business provides that feeling on a daily basis and we’re even more impressed when we see budding entrepreneurs start businesses before they even graduate. Today we’re sharing some simple tips that will help make your small biz a success, keep you focused on the goals you’ve set, and help you be successful with your business before you even graduate.
Creating a business plan is essential for success. It doesn’t matter what your plan looks like – there’s no need for a slide presentation, a bunch of fancy financials, or even a passing grade in a entrepreneur class. Putting pen to paper and outlining the specifics of your business is all that it takes to get the job done. Here are a few things to keep in mind as you write your business plan:
Starting small is just fine and planning to grow as your business expands is the best way to fund a start up venture. Even simple ideas can turn into big business so don’t discredit any of your ideas as you’re brainstorming what type of business to start.
Time management is a much needed skill these days, probably even more so if you’re juggling classes, getting your degree, and running a business. Make sure you’re realistic about how many hours you can spend on running your business. Sacrificing sleep, health, a social life, and your grades isn’t a feasible solution to growing your business, so consider bringing on a partner (this could be another college student) or employing other students to help you get the work done.
Overhead costs include the money you’ll need to get your business up and going as well as the money needed to keep it running. Never consider taking out additional student loans or using money from the ones you already have for funding your business. That money is for education and living expenditures while you get your education. If you need a loan, carefully review terms and know what you’re getting into – excessive debt while you’re in school is just one more stress that won’t help you meet your end goal. If the cost is too great, consider going back to your brainstorm list of business ideas – what other ideas do you have that might cost less to launch?
Starting a side hustle is a great way to help pay your way through college and keep the amount of student loans you rack up to a minimum. Managing the money you have coming in from that side hustle is vital for a healthy business. Make sure you put money back into the business every month, no matter what. Even if the amount is small, keeping your business viable and debt free is best. If you’re finding that you can’t seem to take home even a small cut each month, it might be time to see if you can cut costs or decide to close your doors at least temporarily.
This is true for every entrepreneur, at every age, and education level. The odds of you growing your business exponentially overnight aren’t good, especially if you’re having to divide your time and resources between school and your biz. Unruly expectations can add more stress and pressure to your already busy life. Tempering your expectations and setting goals that are both manageable and attainable is what will help you have consistent growth. Recognizing how far you’ve come and not being too hard on yourself when you don’t hit your goals is also a great way to control the stress as your business grows.
So tell us about your business ideas!
Why is creating a business plan important for starting a business before you graduate?
A business plan outlines your product or service, target market, costs, and strategies for marketing and growth. It serves as a roadmap to guide your decisions, ensuring that you stay focused on your goals and make informed choices about your business.
How can I effectively manage my time while running a business and attending college?
Effective time management involves realistically assessing how many hours you can dedicate to your business without sacrificing your health, social life, or academic performance. Consider bringing on a partner or employing other students to share the workload, allowing you to balance your responsibilities more effectively.
What are some tips for managing overhead costs when starting a business as a student?
Avoid using student loans for business expenses. Carefully review loan terms if you need external funding, and consider lower-cost business ideas if initial overhead is too high. Managing overhead costs helps prevent excessive debt and financial stress while you’re in school.
How should I manage the money coming in from my side hustle?
Ensure you reinvest a portion of your earnings back into the business each month, no matter how small the amount. This keeps your business sustainable and debt-free. If you struggle to take home any profits, consider cutting costs or temporarily pausing operations to reassess your strategy.
What are realistic expectations for a student-run business?
Understand that rapid growth is unlikely, especially when balancing school and business. Set manageable and attainable goals to maintain consistent progress. Celebrate your achievements and don’t be too hard on yourself if you don’t meet every target, reducing stress and maintaining motivation.
This post is part of the popular Business of Blogging series. If you’re looking to start a business online, or if you’re looking to grow your business with a blog, the information provided here is a good place to start.
More and more of today’s business is being done over the internet. Shopping, consulting, taking classes, even ordering food can be done by the swipe or tap on your smartphone. Despite the fact that convenience is one of the internet’s greatest gifts, it also gives us a host of knowledge right at our finger tips.
Blogging is no longer family pictures and a digital way to preserve or share memories. Today, blogging is a key way to provide expert information about your product or service and many online entrepreneurs are financially successful just by providing expert-level information alone.
So how does one turn a blog into a business? We’re glad you asked.
Despite the fact that anyone can start a blog, very few are successfully run businesses. And even though the idea of online businesses is still fairly new, the way to create a successful business is not. In this series, we discuss the details of business as it pertains to blogging, and our goal is to help you turn a profit from providing your knowledge, product, or service on your own little piece of the internet.
You probably know that business expenses can be used as tax write offs. But do you know how to track your expenses so that you don’t run into issues when you claim them come tax time? Maybe you’re even worried about claiming some expenses because the thought of being audited by the IRS is your worst nightmare? We’re sharing our expert tips on how to track your expenses the right way so that you can rest easy and get back to running your business.
This post is part of the popular Business of Blogging series. If you’re looking to start a business online, or if you’re looking to grow your business with a blog, the information provided here is a good place to start.
More and more of today’s business is being done over the internet. Shopping, consulting, taking classes, even ordering food can be done by the swipe or tap on your smartphone. Despite the fact that convenience is one of the internet’s greatest gifts, it also gives us a host of knowledge right at our finger tips.
Blogging is no longer family pictures and a digital way to preserve or share memories. Today, blogging is a key way to provide expert information about your product or service and many online entrepreneurs are financially successful just by providing expert-level information alone.
So how does one turn a blog into a business? We’re glad you asked.
Despite the fact that anyone can start a blog, very few are successfully run businesses. And even though the idea of online businesses is still fairly new, the way to create a successful business is not. In this series, we discuss the details of business as it pertains to blogging, and our goal is to help you turn a profit from providing your knowledge, product, or service on your own little piece of the internet.
When it comes to business, the only real way to tell that it’s successful is through its books. You’d be surprised at how many small business owners and bloggers we talk to that admit that their books are less than stellar – they’re not even sure they’re truly making money. Today we’re talking how to create an maintain an organized bookkeeping system and we think you’ll be surprised that it’s a lot less overwhelming than you may think.
This post is part of the popular Business of Blogging series. If you’re looking to start a business online, or if you’re looking to grow your business with a blog, the information provided here is a good place to start.
More and more of today’s business is being done over the internet. Shopping, consulting, taking classes, even ordering food can be done by the swipe or tap on your smartphone. Despite the fact that convenience is one of the internet’s greatest gifts, it also gives us a host of knowledge right at our finger tips.
Blogging is no longer family pictures and a digital way to preserve or share memories. Today, blogging is a key way to provide expert information about your product or service and many online entrepreneurs are financially successful just by providing expert-level information alone.
So how does one turn a blog into a business? We’re glad you asked.
Despite the fact that anyone can start a blog, very few are successfully run businesses. And even though the idea of online businesses is still fairly new, the way to create a successful business is not. In this series, we discuss the details of business as it pertains to blogging, and our goal is to help you turn a profit from providing your knowledge, product, or service on your own little piece of the internet.
Today we’re discussing the importance of defining the type of business entity your blog or website falls under. The choice is really up to you, but knowledge is power and – read on to find out the different entity types and learn how the pros and cons of each one might benefit you and your blogging business.
