Want to stay informed about what is happening in the world of accounting and tax? Michael J. Yuda, CPA, LLC’s blog is here to help. We understand just how important it is for our clients to not only know what is going on with their finances, accounting and taxes, but also how the constantly changing tax laws, etc. will affect them. That is why we have set up a blog that posts informative articles, tips, and techniques designed to help you stay in charge of your financial life.
Regularly updated, our blog is a great place to learn how to better approach taxes, bookkeeping, and personal finances so that you can give your financial future some direction. If you find an article or piece of information that interests you and want to learn more about what it means then we encourage you to contact us. We always look forward to helping our clients in any way possible when it comes to their financial needs.
Contact our accounting firm in Honolulu, Hawaii, for more information about the different topics we discuss on our blog.
Do you want to know how to get the most out of your small business in Hawaii? There may be ways for you to grow your business that you aren’t already aware of. A CPA in Hawaii can offer business consulting services and help address important benefits that your business is missing out on. Here are a few ways how a CPA can help.
Saving Time & Money – As a business owner, there are plenty of tasks you already take on yourself. If you are not an expert in preparing taxes and figuring out financial issues, why not hire a business consultant to help you? Controlling costs and increasing efficiency are two of the issues small business owners often have trouble with. A CPA will help develop strategies to improve both issues, saving you time and money in the process.
Seek Expertise When Needed – Maybe you like having full control of every aspect of your business. There’s nothing wrong with that, but remember that if complex issues ever arise, it is okay to seek the help of a CPA. Sometimes you just need a fresh set of eyes to look at your problems to offer a new perspective on your situation.
For Future Growth – You want your business to achieve long term success. No one starts a business with the thought that it will only be around for a short time. It’s not an easy task to make long term plans or be able to anticipate future growth. A CPA can work with you to develop a plan for continued growth of your business.
If you think your business still has room to grow, it might be time for you to hire a CPA in Hawaii. For over 40 years, Michael J. Yuda, CPA, LLC has provided Honolulu and surrounding areas with business consulting and accounting services. Visit Yuda.com to contact us about the services you require today.
If you’re a business owner, you know the importance of continuously expanding your knowledge about ways to market, expand, and better your business. Without assistance from outside sources, it can be hard to know where to turn once you’ve run out of ideas for how to makes changes in your company. Thankfully, there are many financial resources and publications available that can help when you’re at a crossroads on a financial decision regarding your business.
Business Magazines – Magazines, such as Forbes or Entrepreneur can offer some insight on what your next financial steps should be. If your business is in its first year, it can hard to know how to handle every financial aspect of your company, so subscribing to a few business magazines can help when you need immediate answers or recommendations.
Accounting Software – Accounting software is the ultimate financial resource when it comes to handling revenue, taxes, and other money-related issues within your company. Although there are many software programs available, you may still want to consider a Quickbooks ProAdvisor, which is a CPA who can help you understand all of the details in your business and provide bookkeeping services.
Entrepreneurial Websites – There are a lot of websites available online to help with any questions you may have, whether they’re about your business or about your personal finances. Government websites can also help answer any questions you may have about things like taxes, marketing, and more.
When you’re looking for financial solutions, before you become overwhelmed, remember there are many resources and publications available to help you. And if that doesn’t help, find a local CPA who can answer any financial questions you may have.
It should seem like a no-brainer that when beginning a new business venture you also need the expertise of an accountant and lawyer to ensure you are doing things properly. Legalese is like a foreign language and ensuring you pay your taxes and stay out of trouble should top your list of priorities.
However, aside from those obvious reasons, there are many more circumstances in which you will need the assistance of an accountant. As you become more experienced, you’ll find that your accountant and attorney will overlap a bit in their services and expertise. That being said, here are a few examples of services your accountant should provide:
*Help you decide what type of entity (such as S-Corp or LLC) and ownership structure to have when you first get started; your accountant may work with your attorney on this.
*Design and set up your accounting system so that year-end financial reporting will be easier.
*Ensure that you pay the correct types of taxes in the correct amounts.
*Ensure that you send out W2 and 1099 forms to the proper people at the proper times, and also make sure that if you send out 1099s, the IRS will agree with you that those individuals are independent contractors and not employees.
*Advise you on deductions and how to separate your personal and business expenses.
*Advise and guide you through an audit if you ever have one.
*Advise you on specific transactions, such as whether it’s better to lease or buy.
*Compile your financial records for the past period.
*Help you understand your financial statements. You should use your accountant’s expertise to help you analyze your financial statements.
*Knowing what kinds of business expenses are deductible.
It’s best to ask your accountant’s advice before you take any kind of financial action regarding your company. If you’re looking for a CPA in Hawaii to help guide you in your new or existing business ventures, visit Michael J. Yuda CPA, LLC today!
“Accounting is the language of business” Warren Buffett
Authored by Chris Vanderzyden
Accounting, financial statements, forecasting, budgeting, taxes…Unless you are an accountant, most small business owners have very little understanding of the finance side of their business, and in order to be successful, it is imperative that you know and understand the language.
According to a recent report from the Small Business Administration, one-third of new businesses fail within two years, and fifty-six percent within the first four years. I actually thought these stats were pretty good – two-thirds stay in business for two years – not bad at all! But, how many are profitable? Only about 40%.
Why the lack of profits and thus the high failure rate? Incompetence, and one of the primary inadequacies cited is lack of financial knowledge.
I get it; the finance side of business is just not as sexy as the product development, marketing & sales, or whatever is your sweet spot in your business. However, it is critical to your success that you not only understand your financial information, but also utilize the data to make sound management decisions.
Hire a CPA and a bookkeeper to do the dirty work, but do not hide your head in the sand in regards to what your financial picture looks like. Your ability to read and properly analyze the information will ensure that your business continues to thrive.
Here are a few key points to understanding two of the basic financial statements – the Balance Sheet and Income Statement:
1. Balance Sheet – The balance sheet is a picture of the position of a company at a specific date. It provides the value of assets, liabilities and owner’s equity and provides the information necessary to determine the level of solvency and liquidity of a company.
A key indicator to liquidity is the current ratio: the ratio of current assets to current liabilities. Current asset are those assets that can be converted to cash within the current period such as, accounts receivable. Current liabilities are those liabilities that are expected to be paid off within a current year, accounts payable.
Computed: Current Assets / Current Liabilities
A 2:1 ratio (twice the assets as liabilities) is a good marker of a healthy small business.
Two additional balance sheet key ratios to consider:
Inventory turnover – the number of times that inventory is replaced in a period. This provides an indicator of how well the inventory levels are being managed.
Computed: Cost of Goods Sold (CGS found on the income statement) / Average Inventory in a Given Period
* Is your rate good? How is it trending compare to previous periods? Compare your turnover rate to your successful competitors.
Receivable turnover – is a measurement of how many times a business collects its receivable in a period or how efficient their collection process is. The goal is to collect receivables as quickly as possible, so the higher the ratio the better.
Computed: Credit Sales / Average Accounts Receivable
2. Income Statement – Displays all revenue sources and expenses for a given period of time. Three key analytics:
Gross Profit Margin = Sales – CGS / Revenue
Analyze – are you making a profit on the products you are selling?
This will indicate how efficient your company is operating.
Net Profit Margin = Net income/revenue
This is the income derived from every dollar of revenue.
VICTORY TIP FOR THE WEEK:
Your financial statements are your greatest tools to identify weaknesses in your business. It will alert you as to when trouble is brewing and allow you to be proactive in resolving issues. Is there a problem in your inventory control? Do you need to tighten your cash management procedures? Is your pricing out of whack? Are your operating expenses eschewed?
Don’t hide your head in the sand—carefully and consistently analyze your financial statements, and watch the trends as you compare period-to-period. Your efforts will guide you to make better management decisions that will positively impact your bottom line. Trust me – it pays to fall in love with the language of numbers!
* This post was originally written and posted on ChrisVanderzyden.com– thanks to Chris Vanderzyden for sharing with us! We’re so excited for you to share this with our readers! Follow her blog for more amazing posts.
Are you looking for someone to handle bookkeeping for your small business? If the answer is yes, it’s best to choose a bookkeeper that is a Certified QuickBooks ProAdvisor. A Certified ProAdvisor knows the ins and outs of the powerful and useful software, and can help keep your books in order, which translates to a more financially stable business. Why should you choose a QuickBooks Certified ProAdvisor?
In most cases, Certified QuickBooks ProAdvisors are trained CPAs, accountants and other professionals who have spent years studying and learning how to handle small business finances.
Certified QuickBooks ProAdvisors have completed a comprehensive and thorough QuickBooks training course and exam in order to be certified.
They can help get you started on the right foot with aiding in set-up, proper training and even troubleshooting.
Certified ProAdvisors can help provide the best guidance to help you have the highest satisfaction from using QuickBooks.
A Certified ProAdvisor knows how to get the most out of the software.
If you’re looking to get the most out of QuickBooks for your small business bookkeeping, consider contacting Michael J. Yuda, CPA LLC, in Honolulu, Hawaii. There’s no better QuickBooks ProAdvisor in Hawaii, than Michael J. Yuda to help learn the ins and outs of QuickBooks. With personalized service and attention to your unique business, Michael J. Yuda can help provide only the best and most experienced QuickBooks bookkeeping services! Contact us today!
Would you believe that being a CPA might be one of the most important jobs today? It’s no secret that the world is always getting more and more complicated, and financial concerns are the driving backbone of these complications. Over the last few decades, CPA’s have been responsible for handling many major issues for the government and even some of the world’s biggest corporations and organizations. A CPA knows the inner workings of the companies and clients they work for, and can effectively create and analyze financial information to see where a company or client is and where they need to go. A CPA is almost like a financial James Bond, always on top of the situation and an expert in the field. Without CPA’s, the business world would crumble.
Many businesses rely on a CPA to help guide them with investments, budget and even decide on expanding a company or waiting until more fiscally strong. It’s undeniable that a CPA may be one of the most important components of any business. Regardless of whether you’re part of a giant corporation, or just a small start-up company, it’s essential to hire a CPA that will help make important and often crucial decisions involving your finances. Skimping accounting can affect an entire business sector, and cause major problems. Finances and accounting are crucial to the success and stability of the business world, and a CPA is the nucleus of any business, as they can help control a businesses’ growth much like a cell.
For many small-business owners, it’s a good idea to have an active accountant that can give advice from the very beginning of your business. However, not all accountants are equal! Choosing the right accountant for your business can be a very daunting and stressful task if you don’t exactly know what to look for. When looking for a CPA or accountant it’s important to take the following into consideration:
Ask yourself whether the person communicates well.
Can this person be contacted easily in case of an emergency?
Ask basic questions about small business book keeping practices to test the candidate’s knowledge of the topic.
Find a CPA that understands entreprenual spirit and doesn’t speak negatively about small business.
Find a CPA that doesn’t only speak in jargon. If you can’t understand anything your CPA says, your relationship is doomed.
Choose CPA that feels like a partner and understands your entreprenual dream.
It’s extremely crucial to hire a CPA that is kind, knowledgable, helpful and flexible. If you’re looking for a reliable CPA in Hawaii, consider Michael J. Yuda CPA, LLC. Michael J. Yuda can answer any questions you might have about accounting, tax preparation, business consulting, and QuickBooks. This Honolulu CPA firm is here to answer any of your questions, just simply contact us here.
Do you want to know how to get the most out of your small business in Hawaii? There may be ways for you to grow your business that you aren’t already aware of. A CPA in Hawaii can offer business consulting services and help address important benefits that your business is missing out on. Here are a few ways how a CPA can help.
