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How Your Small Business Can Prepare for Florida’s Minimum Wage Increase

In recent years, we’ve seen a reopening of the debate over minimum wage. Advocates are currently pushing for an increase to $15.00 per hour by 2026, with the door open to possible increases in the years after that. If you’re a worker, this is good news. A slight bump in the Florida minimum wage can increase the pay you receive, compensating for rising costs of living and other expenses.  However, if you’re a small business owner, this wage increase can lead to tough decisions. Unless you’re a corporate giant, it can be tough to maintain your current roster of employees if you have to pay them more.

In this post, we’ll help you to prepare for the coming changes in the Florida minimum wage. We’ll also provide suggestions about the best ways to navigate the road ahead.

What is the Current Florida Minimum Wage?

As of January 1, 2021, Florida’s minimum wage has increased from $8.56 per hour to $8.65 per hour. Tipped employees have seen a recent increase in their wages, rising from $5.54 per hour to $5.63 per hour. 

According to federal law and in some states, like Florida, employers may pay tipped workers less than the mandated minimum wage. This is called a “tip credit” as employees earn enough in tips to make up the difference.  The “credit” is the amount the employer doesn’t have to pay.  So for employers, the applicable state or federal minimum wage minus the tip credit is the least amount the employer pays tipped employees per hour. If an employee doesn’t make enough tips during their shifts to earn the hourly minimum wage, the employer has to pay the difference.

Are There Plans to Change the Florida Minimum Wage After 2021?

These changes will not stop in 2021. In November of 2020, Florida residents voted to raise the Florida minimum wage to $15.00 by 2026. The minimum wage increases will take place in a phased approach, raising the minimum wage each year on September 30. The proposed schedule will run as follows:

  • $10.00/hour on September 30, 2021
  • $11.00/hour on September 30, 2022
  • $12.00/hour on September 30, 2023
  • $13.00/hour on September 30, 2024
  • $14.00/hour on September 30, 2025
  • $15.00/hour on September 30, 2026

 While there are no specific plans after 2026, the minimum wage increase may increase based on changes to the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region.

An employee hads a customer their food order.

How Should Small Business Owners Prepare for Florida Minimum Wage and Paid Leave Increases?

If you’re a business owner, don’t panic. At Xendoo, we understand the unique challenges facing today’s small business owners. 

Here are some suggestions on ways that your business can prepare for changes in the Florida minimum wage:

Audit Your Expenses

How much are you already spending on overhead, supplies, and operating costs? You may be able to cut a few corners with certain expenses or by eliminating wasted spending. The money you save can be channeled into your human resources budget.

Determine Your Budget

Using these increased wage figures, calculate your new operating budget. Forecasting your operating expenses will let you know what you’re dealing with and provide an idea of what your income needs to be to maintain your profit margin.

Update Your Tech Stack

A tech stack refers to the digital tools you need to run your business. An update can help you to automate your social media presence, streamline scheduling, or integrate automated forms into your company’s website. These improvements optimize your business without the need for additional personnel or work hours.

Check Your Employee Classifications

How many full-time employees do you need? How many part-time employees do you need? Of course, you don’t need to start considering downsizing, but at the same time, it can be helpful to consider what your future needs may be.

Staff Accordingly

You may find that in the future, you can get by with fewer staff members. Perhaps you can rely on part-time staff to fill roles that you currently staff with full-time employees.

Gradually Increase Prices

Your new operating costs will probably push you to increase your prices to maintain your profit margin. However, raising prices slowly will give your loyal customers time to adjust while still ensuring you get the revenue you need.

Outsource Your Back Office

Are you still handling your own bookkeeping and accounting? Paying an employee to handle these specialized tasks may put a strain on your operating budget. Instead, outsource these tasks to a company like Xendoo. We can keep your company up and running without allocating your employees to do the job.

Contact Xendoo Today

The increase in the Florida minimum wage might mean big changes for your business. At Xendoo, we can help you stay ahead of the curve, adapt to these changes, and remain healthy and profitable.

 We understand the challenges that Florida small businesses face. We can provide small business owners with Florida bookkeeping services that ensure accuracy and efficiency so that you don’t have to allocate precious resources to maintaining the books. 

We can also help you with your Florida tax preparation, helping you to navigate the laws and changes that are likely to come your way in the immediate future.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

A man in an oxford shirt looks at his bookkeeping on his laptop

Why You Should Outsource Your Online Bookkeeping Services

It’s common for a business owner to want to save money on outsourcing bookkeeping services and do it themselves thinking, What can go wrong… it’s just data entry!?” But, it’s all too common to make novice mistakes that can cost you a lot of time and money. Plus, your financials become more complex as your business grows – more expenses, and ideally more income! And you may want to borrow money or open a line of credit, so you don’t want to be scrambling to provide up-to-date financials for your lender right then and there.

Keeping accurate books takes a lot of time and focus which is why you need a bookkeeper.

What is outsourced bookkeeping?

When you don’t have the complexity or volume of transactions to require hiring a full-team bookkeeper or accountant (yet!), but you need a reliable source to delegate this important work to—choosing outsourced bookkeeping is the way to go.

The size of your business and the number of monthly expenses you incur play a large role in estimating the pricing for outsourced bookkeeping services. A popular option for bookkeeping services for small businesses are packages that charge a fixed amount every month because it’s easy to budget for, and it can cost less than half what you would pay hourly for the same amount of service. That’s why Xendoo offers this pricing structure with a variety of package options to fit your specific company’s needs.

Why should I outsource my bookkeeping?

Being a successful entrepreneur doesn’t equal being an expert at financials. One mistake can lead to tax issues and may require additional effort or redoing an entire month of books, so outsourcing bookkeeping services save you time, money, and stress. From entering transactions to monthly reconciliations to real-time tax coding, you gain accurate, up-to-date books and a dedicated financial team of experts who can answer questions regarding:

  • Tax savings advice, such as when to make capital purchases, what you can deduct, and how to reduce taxes on capital gains
  • Answer your questions about financial reports, cash flow, depreciation, and other accounting processes
  • Identify opportunities to improve profit margin and business growth
  • Help set up systems for business accounting and teach you best practices
  • Keep you tax-compliant and legal, prevent missed deadlines and noncompliance penalties

What are the benefits of bookkeeping?

Outsourced bookkeeping saves you time, money, and headaches! It can scale with your business as you grow, and it lets you focus on your business instead of just the books.

  • Time: Small business owners are notorious for spending a large amount of time on administrative work, like employee scheduling, preparing payroll, and especially hours (and hours!) of bookkeeping. It is estimated that small business owners spend 120 working days per year on administrative tasks like bookkeeping. And still, nearly 25% of businesses are behind on their books. 
  • Money: If you’re attempting to do all of your small business bookkeeping on your own, even utilizing programs like Quickbooks or Xero, you already know that you are spending a lot of time and money. If you’ve hired an hourly bookkeeper or accountant you know paying per hour can add up fast. Xendoo offers a flat-rate monthly fee, so you can easily budget for your bookkeeping each month and avoid huge unexpected bills from an hourly bookkeeper.
  • Stress: With so many business accounting software choices now available (Quickbooks, Xero, Freshbooks, Wave… the list goes on), you may assume that letting your computer do everything will be cheaper than the cost and the hassle of hiring a bookkeeper and accountant. But some things still need an expert. When you outsource your bookkeeping to Xendoo you won’t ever need to stress about having your books up-to-date, fixing your novice bookkeeping errors, or being tax compliant and ready.
  • Scale Up: As your business grows, your bookkeeping and accounting needs will grow, too. This means you’ll be entering in more and more transactions each month, making bookkeeping more difficult and time-consuming than before. If you want to take out a loan or open a line of credit to grow, your lender will want accurate financial statements. With Xendoo, you can quickly access your financial statements as soon as you need them.

Being able to quickly analyze the financial health of your business is key to continued growth and success. For a flat monthly fee that works with your budget, you’ll get Xendoo’s bookkeeping service featuring cloud-based software for always accessible, up-to-date financials, plus a dedicated bookkeeping and accounting team to answer any questions. Outsourcing your small business bookkeeping services to Xendoo to save time, money, and stress. 

Start making smart business decisions on the fly while gaining peace of mind with Xendoo.

What to Expect From a Bookkeeping Price Package

With Xendoo’s bookkeeping price package you can easily find the plan you need and work with our expert financial team to gain insight and make smart business decisions. Xendoo doesn’t use its own proprietary software, but instead, we partner with Quickbooks Online and Xero, so your books are yours throughout any changes and transitions. Your books are up to date with your dedicated financial team, financial insight is at your fingertips, and you are always tax-ready. Additionally, Xendoo’s bookkeeping team can also balance your personal finances if needed.

Xendoo’s bookkeeping price packages for small businesses include an expert bookkeeper to handle your books using Quickbooks or Xero accounting software—whether you’re on a cash basis or a modified accrual system. Your plan also includes profit and loss statements, balance sheets, monthly trend graphs, a standard chart of accounts, tax returns*, tax consulting*, and more. Plus you get access to Xendoo’s user-friendly technology including our robust and easy-to-use mobile app.

How do bookkeeping price packages work?

Xendoo’s bookkeeping price packages are designed based on the size of your business. Regardless of size, all of Xendoo’s bookkeeping plans come with a team of bookkeepers who are committed to helping you grow your business. Xendoo offers a variety of packages because we know not all business owners are created equal, so you can choose the package that works best for you and your business. A great place to start is the Hustle plan—it’s made for self-employed small business owners like you and starts at $195/mo. You’ll get expert bookkeeping and on-time financials – and you won’t stay up at night worrying about how behind you are on your bookkeeping.

All of Xendoo’s plans include a dedicated bookkeeper that keeps your books up to date month after month, plus many Xendoo plans, such as  Boost, Flight, Thrive, and Venture also offers access to a CPA and an accountant who can offer tax preparation and yearly planning.

Xendoo offers five different bookkeeping price packages for small business owners to choose from. We even offer custom plans. To determine which bookkeeping package is right for your small business, check out the pricing page on the Xendoo website. You’ll see that the five different packages are determined by your small business’s monthly expenses. We know every small business is unique, so when necessary, we will work with you to create custom bookkeeping packages to suit your specific needs and goals. 

And it’s easy to change your Xendoo bookkeeping package if you ever need it. Perhaps your monthly expenses have increased and you need to bump up to a more robust plan, or maybe you are in a slow season and need less help with your bookkeeping. Whatever the case, you can easily log in to your account and modify your plan.

No matter which bookkeeping package you choose from Xendoo, you will be up to date, compliant, and ready to grow. Not to mention, you will have peace of mind and one less thing on your to-do list. You will rest easy knowing you are not part of the 25% of small business owners who report that they are behind on their bookkeeping!

A man in casual attire looks works on his finacial statements while sitting at a desk

Xendoo’s bookkeeping package pricing

Xendoo provides tailor-made bookkeeping solutions for every type of small business. Our five main plans are Hustle, Boost, Flight, Thrive, and Venture.

Our most popular bookkeeping package at Xendoo is the Flight plan. It is the perfect option for small business owners who have less than $60,000 in monthly expenses. The Flight plan is a full-service bookkeeping package that includes both business and state tax returns. When you choose the Flight plan with Xendoo, you will also receive weekly bank account and credit card reconciliations and you are guaranteed to receive all of your monthly financial reports by the 20th of the following month. 

At Xendoo, we consider every customer unique because no small business is the same—if needed, we will work with you to customize a plan to suit your specific needs.

Why a flat monthly rate?

A very popular option with small businesses is a bookkeeping or accounting service that charges a fixed amount every month like Xendoo. It’s easier to budget, and it typically costs less than half of what you would pay an hourly bookkeeper or accountant for the same service. When you have a busier-than-usual month you’ll be relieved to know you can count on a fixed monthly rate instead of getting hit with a huge bill from your bookkeeper. Hiring a small business bookkeeper saves money in the long run by helping you stay ahead of your expenses and budget accordingly. 

You can even start with Xendoo’s free trial which includes a complimentary calendar month of bookkeeping plus a profit and loss statement and balance sheet.

What do you get with a bookkeeping package?

Xendoo will keep you organized – we provide on-time monthly reports and data for your business. You’ll receive a monthly balance sheet and a profit and loss statement that you can easily access from your desktop or mobile, as well as weekly reconciliations so you have clear visibility of your business’s financial health.

Remember, you aren’t locked into your plan. You have the ability to modify your plan or add additional bookkeeping services to match your business’s bookkeeping needs.  Just login to your account and choose the option that is best for you. 

Even if you decide to leave Xendoo, you don’t have to worry about the transition—you can easily transfer your files via Quickbooks Online or Xero. Stop worrying about your financials and gain peace of mind. With Xendoo, you get real-time accounting, tax consulting and planning, a fixed flat monthly rate, and a supportive team that has your back.

Xendoo’s passion is helping small business entrepreneurs. With bookkeeping price packages that fit every business, a dedicated financial team, and cutting-edge technology, Xendoo is the obvious choice for staying on top of your books. Join the Xendoo community of confident business owners to gain the power to make timely, smart financial decisions.

The Best Bookkeeping Service For Your Small Business

There are different types of bookkeeping services for small businesses. You can handle it all yourself, utilizing software like Quickbooks and Xero; hire a part-time small business bookkeeper; or opt for a full-service bookkeeping service like Xendoo that can handle it all for you. 

What are the different types of bookkeeping services for small businesses?

You may choose to handle all of your small business bookkeeping on your own, but keep in mind that it’s more than just simple data entry. You’ll need to familiarize yourself with your software of choice, such as Quickbooks or Xero and set up your Chart of Accounts among other things – and of course make sure your records are always as up-to-date as possible. 

A popular option for small business owners is to hire a part-time bookkeeper. This is a great solution for small business owners who have enough time to take on some of the bookkeeping work themselves or who have someone on staff who can manage it. One important aspect of hiring a part-time bookkeeper to keep in mind is that you will still need to oversee and be involved with the part-time bookkeeper’s work. You’ll need to review their data entry, monthly reconciliations, and any communication they have with your accountant. Additionally, you will need to organize receipts, invoices, and any other financial paperwork for them and make sure to stay organized on your end.

As a small business owner, you wear many, many hats. From sales and marketing to employee management and not to mention, your specialty – the good or service you set out to provide in the first place – whether it’s operating a small bakery, selling home goods, or running a childcare center – you do it all. When you are ready to catch up on your bookkeeping and make sure it always stays up to date, you can opt for hiring a full-service bookkeeping service like Xendoo. Xendoo is proud to support thousands of small business owners with their financial needs to help set them up for success and provide financial peace of mind. It’s one important thing you can take off of your to-do list, and you can rest easy knowing your financials are being properly handled throughout the year by professionals – no more worrying about when you’ll do your bookkeeping, and no more playing catch up when tax time rolls around.

When should a small business hire a bookkeeper?

It is estimated that small business owners spend as many as 120 working days per year on administrative tasks and bookkeeping. That’s almost four months! This is time that could be spent doing the work you love that led you to start a small business in the first place. Perhaps you set out to own and operate a dog grooming business – you never thought you would end up spending all your days at your computer with piles of paperwork! Small grocers, massage therapists, photographers, dentists, even nail salon owners – every small business owner is different, yet they all need someone to handle their bookkeeping. 

An excellent time for a small business owner to consider hiring a bookkeeper is when you see that your small business is growing. Perhaps your bookkeeping tasks are taking more time than you can afford, and your books are never up to date. Maybe you recently added on a new location, hired more team members, or have seen a sharp increase in sales – whatever the case is, it looks like your small business is growing. As your business continues to grow, your bookkeeping workload will also increase, so if you’re posting more and more transactions each month, entering data on a regular basis can make bookkeeping more difficult and time-consuming. Even when you use online bookkeeping software solutions such as QuickBooks or Xero, a bookkeeping service for small business service can help you manage and maintain your books accurately and save you a large amount of time and money.

A bookkeeper will keep your company’s financial records accurate and up-to-date by performing basic bookkeeping services, that in the end can take hours and hours that a busy small business owner just doesn’t have. This includes regularly reviewing source documents such as your monthly bank and credit card statements, invoices, expense reports, payroll, and receipts, and recording basic accounting information for you – such as your data entry and monthly reconciliations – in your company’s books.

Small business owners notoriously spend a large amount of time on administrative work, like employee scheduling and management, preparing payroll, reviewing invoices, and especially hours and hours of bookkeeping. When you find you can’t afford to spend your precious time on administrative work like bookkeeping any longer, you know it is time to delegate and outsource the work to a bookkeeping service for small business.

Are there bookkeeping packages for small businesses?

Xendoo offers bookkeeping services for small businesses packages of all shapes and sizes. No matter the plan, each one comes with a dedicated financial team – you will have a dedicated bookkeeper assigned to your account who is supported by a full team of bookkeepers that have your back, and are available to talk, text, or email with you as you navigate your busy workday.

Xendoo offers five different bookkeeping service for small business plans for small business owners to choose from – and even offers custom plans. To determine which bookkeeping package is right for your small business, check out the pricing page on the Xendoo website. You’ll see that the five different packages are determined by the amount of your small business’s monthly expenses. We know every small business is unique, so when necessary, we work with our customers to create custom bookkeeping packages to suit their specific needs and goals. 

And it’s easy to change your Xendoo plan if you ever need to! Perhaps your monthly expenses have increased and you need to bump up to a more robust plan, or maybe you are in a slow season and need less help with your bookkeeping. Whatever the case may be, you can easily log in to your account and modify your plan.

No matter which bookkeeping service for small business package you choose from Xendoo, you will be up to date, compliant, and ready to grow. Not to mention, you will have peace of mind and one less thing on your to-do list. You will rest easy knowing you are not part of the 25% of small business owners who report that they are behind on their bookkeeping. 

Do bookkeepers save small businesses money?

Bookkeepers and bookkeeping services for small businesses save both time and money. Small business owners notoriously spend a large amount of time on administrative work, like employee scheduling, preparing payroll, and especially hours and hours of bookkeeping. It is estimated that SMBs spend 120 working days per year on these administrative tasks and bookkeeping. A bookkeeper can save you money by helping to maximize your business’s income, help you determine where you can cut costs, and give back your valuable time to focus on the reasons you started your business in the first place. For a set monthly fee, Xendoo’s bookkeeping solutions come with a fully dedicated financial team to save you time, money, and most importantly – stress.