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Building Cash Reserves

Building a financial cushion for your business is never easy. Experts say that businesses should have anywhere from six to nine months worth of income safely stored away in the bank. If you’re a business grossing $250,000 per month, the mere thought of saving over $1.5 million dollars in a savings account will either have you collapsing from fits of laughter or from the paralyzing panic that has just set in. What may be a nice well-advised idea in theory can easily be tossed right out the window when you’re just barely making payroll each month. So how is a small business owner to even begin a prudent savings program for long-term success?

Realizing that your business needs a savings plan is the first step toward better management. The reasons for growing a financial nest egg are strong. Building savings allows you to plan for future growth in your business and have ready the investment capital necessary to launch those plans. Having a source of back-up income can often carry a business through a rough time.

When market fluctuations, such as the dramatic increase in gasoline and oil prices, start to affect your business, you may need to dip into your savings to keep operations running smoothly until the difficulties pass. Savings can also support seasonal businesses with the ability to purchase inventory and cover payroll until the flush of new cash arrives. Try to remember that you didn’t build your business overnight and you cannot build a savings account instantly either.

Review your books monthly and see where you can trim expenses and reroute the savings to a separate account. This will also help to keep you on track with cash flow and other financial issues. While it can be quite alarming to see your cash flowing outward with seemingly no end in sight, it’s better to see it happening and put corrective measures into place, rather than discovering your losses five or six months too late.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

 

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accounting firms conway sc

The Advantages Of Outsourcing Your Accounting

There are many reasons that accounting is being outsourced more and more by various companies. Some may think that utilizing outsourced accounting services is a bad concept because of less control and more expenses, however that is a myth that has actually been proven wrong countless times again and again. In reality, there are way greater benefits from outsourcing your accounting services, then by arranging your own accounting department or doing your accounting yourself. We will discuss the advantages of outsourced accounting and permit you to see why it is a popular action that lots of businesses and organizations are taking.

Using outsourced accounting services can, in fact, save you a lot of money in the end. By outsourcing your accounting needs you there’s no need to hire staff members to establish an in house accounting department. This conserves not only cash but also time. It costs money and time to find certified employees to run your accounting department. With outsourced accounting services,  there’s no need to stress over incomes, employee compensation, insurance coverage, or a number of the other expenses that having staff members entails. Another major benefit is that you do not have to fret about losing an employee and having to discover another in house accountant to change the one you lost. There are also lots of accounting firms that can incorporate their services with your own accounting software so that it provides a simple accounting integration.

By removing the need to focus on your accounting you preserve better relationships with your clients…

Another benefit that comes from outsourcing your accounting, is that you can focus more on the accounting information. This removes needing to focus on entering your accounting details and allows you to look at your present circumstance and make preparations for future enhancements and developments with the information provided. By outsourcing, you can focus entirely on payments, billings, and profit and losses. It free’s up your time so you will be able to spend it more productively by building and preserving much better relationships with your providers and clients.

By using outsourced accounting services, you have a lower threat of error and problems with your accounting. It is much better to trust your accounting requirements with a certified professional rather than attempting to do your accounting yourself. Unless you are a certified accounting professional, you have an there will always be the threat of making an error with your accounting. This possibility of error is nearly null and void when you utilize an outsourced accounting company that their sole focus is on the field of accounting. Any errors can have a very negative impact not just on your records of what is owed and needs to be paid but also on your present costs and forecasts associated with your profits and losses. By not correctly and properly preserving accounting records, you run a high risk of failure as far as your personal or business accounting is concerned.

Clearly outsourcing your accounting has shown to offer many benefits. These advantages will not only save you money and time but will equally provide the solutions to help you grow and expand your organization. Accounting can be an extremely exhausting job that requires a lot of attention to information along with understanding to have it done properly. Because accounting can be contracted out quickly and can be done at a lower rate contracted than in house, outsourced accounting has actually shown over time again and again to be the best solutions for businesses and personal accounting solutions alike.

 

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

 

Contact Us Today

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