The Miami tech movement wouldn’t be what it is without the women founders, executives, nonprofit leaders, and venture capitalists who have spent years championing the region’s innovation community. An article by Ashley Portero, Senior Reporter, South Florida Business Journal. Read more here
As a small business owner, your time is best spent on the revenue-generating features of your business— not hunched over a computer screen scrolling through QuickBooks!
Thankfully, a reliable bookkeeping solution is just a click away. What should you look for in an accounting or bookkeeping service? Today, we’ll highlight five of the best small business bookkeeping service solutions.
Online Bookkeeping Service for Your Small Business
When your business is small, it can be tempting to try to handle the books yourself in order to cut costs. Even if this works for a while, it’s simply not a sustainable model. Small business owners should be focused on growing their core business, not on the back-office demands associated with small business bookkeeping.
Adding another staff member often seems like a natural solution, but modern bookkeepers can cost well over $40,000 per year. Not only do these costs eat into your profits, but the addition of office personnel could also take up valuable space in your facility.
Online bookkeeping services provide a simple, elegant solution that can save you time, money, and the headaches you get from trying to juggle the needs of your small business!
Today’s accounting firms can handle a wide variety of SMB bookkeeping tasks, including:
- Financial statements
- Corporate tax preparation
By outsourcing your needs to an online accounting firm, you gain the benefit of industry-leading expertise, all without breaking your budget.
Some business owners are leery of outsourcing their sensitive financial data to an online company. But at Xendoo, we value communication with our clients. Our bookkeepers and CPAs are available by phone, text, and email, so you’re never out of touch with our skilled team.
In fact, many customers are surprised at the ways that small business bookkeeping solutions increase financial transparency. This is possible because your financial data is instantly available to you at any time, no matter where you are. This may be especially important for businesses that process digital or online transactions, providing up-to-the-minute reporting regarding your cash flow.
Catch-Up Bookkeeping Services
Roughly one out of every four business owners are behind in their books. Sound familiar? Sure, you keep telling yourself that you’ll get caught up “someday,” but the longer you ignore the problem, the worse it will become. Some small businesses can quickly find themselves months or even years behind in their bookkeeping.
This is deeply problematic because it prevents entrepreneurs from knowing what’s really going on in their company since they lack access to current financial data.
Getting behind in your books also can leave you vulnerable to fines and audits when it comes to taxes or payroll.
If you ever need a business loan, lenders will expect to see copies of recent financial statements. Without accurate, up-to-date information, you may be denied a crucial loan.
So what can you do if you do get behind? Small business owners can take advantage of “catch-up” services. As the name suggests, these small business bookkeeping solutions are designed to bring your financial records fully up-to-date.
If you’ve gotten behind in your books, this bookkeeping solution just might offer you a huge sigh of relief. Accurate, current financial data will provide you with a fuller picture of the health of your business, which can enable you to better plan for the future.
At Xendoo, we don’t merely offer catch-up bookkeeping services to bring your books up to date — we keep you up-to-date by reconciling your books on a weekly basis! This gives you the freedom and confidence to focus on your business, knowing your financial needs are in expert hands.
Business Tax Preparation and Filings
Taxes represent a unique SMB bookkeeping demand. On the one hand, tax preparation is a yearly chore, but on the other hand, business tax codes can be complex, and ever-changing.
That is why many business owners look for small business bookkeeping solutions that can assist with the complexities of tax preparation and filing. Not only can a professional accounting firm save you money, but they can also provide the best protection from common errors that can leave you and your business vulnerable to audits.
Keep in mind that your filing status depends on the structure of your business. Partnering with an online accounting firm like Xendoo can ensure that you file the appropriate form. You can feel confident when you’re working alongside a CPA who is familiar with businesses ranging from partnerships to LLCs to S Corps and beyond.
Additionally, consulting a CPA can also help you to take advantage of existing tax codes, maximizing your deductions and ultimately saving money. These bookkeeping solutions not only take the hassle out of tax season, but their tax strategy and planning services can help you keep more of your profits.
Bookkeeping services can also assist you with your personal income tax preparation. This can be a lifesaver, as business owners often face tax situations that are complex. Xendoo offers personal tax preparation as an add-on to many accounting packages.
Accounts Payable and Receivable
One of the reasons that small businesses fail is that they don’t always get paid on time. Some businesses simply don’t know how to collect money from overdue accounts. We
Unfortunately, there are many cases in which business owners can only collect their debts through persistent effort and regular contact with their clients. But once again, today’s entrepreneurs often lack the time for this kind of due diligence.
Online services can provide small business bookkeeping solutions that automate and manage your invoicing and collections process. At Xendoo, we rely on advanced online bookkeeping software that can be used to create and submit invoices, collect payments, and monitor every step of the process.
Most businesses will likewise owe money to vendors and suppliers, and this process can likewise also be managed remotely by an online bookkeeping service.
By relying on this same service for tax planning and preparation, small business owners can have peace of mind that their income and expenses will be recorded accurately when it comes time to file taxes.
Financial Reporting and Insights
Financial reporting might be one of the most advanced small business bookkeeping solutions available today. While the other services we’ve listed are focused on your company’s historic or current performance, financial reporting helps you plan for the future.
Financial reporting allows you to track, analyze, and generate reports about your business income. This data can help you to monitor cash flow, resource units, and the overall financial health of your small business. It’s like having access to a professional business consultant, tasked with preparing reports and data with precise accuracy.
This can be important data to have if your business has any investors, who may want to see the progress your business is making. Additionally, these reports may be required when you want to receive a business loan or open a line of credit to facilitate growth.
The insight provided by these reports can also serve as a catalyst for future business growth. Negative financial trends might alert you to an area that needs to be adjusted, while positive trends can encourage you to continue focusing on areas of success.
This data can also help you manage your growth, allowing your business to scale with the natural trends of the market.
Trust Xendoo for Small Business Bookkeeping Solutions
If you’re a small business owner, the choice is increasingly clear — you need to partner with an online bookkeeping service. Chances are that you’ll be relieved to have someone else shoulder the burden of maintaining and reconciling your books.
Why not see for yourself? Sign up today for a free trial, and see what Xendoo can do for your business.
When it comes to financial health as your scaling your startup there are six steps to healthy financials for scaling your startup. Watch for insightful tips for your small business by our CEO and Founder Lil Roberts, at This Week in Startups – Scaling your Startup. E1224 of Low Burn.
We believe business owners should have time to do what they love, build their business – not do bookkeeping.
The new buying habits are post-pandemic! What to expect? Xendoo CEO and Founder Lil Roberts is back to share with us the new buying habits post-pandemic and how eCommerce fits into retail’s post-pandemic future.
“We believe business owners should have time to do what they love, build their business – not do bookkeeping.”
One of Broward County’s biggest startup success stories continues to grow at a rapid pace.
Fort Lauderdale-based xendoo has developed a SaaS bookkeeping platform targeted at small businesses. The startup reported a two-year revenue growth of 777% from 2018 through 2019.
Partnering with Gusto today means a better tomorrow for xendoo customers. As a small business owner, you juggle multiple roles… bookkeeping, human resources, marketing, and all that goes into running your business every day. You love what you do and wish you could leave the complicated, boring stuff out of your day-to-day. xendoo feels your […]
Editor’s Note: This post was originally published in November 2019 and has been revamped and updated for accuracy and comprehensiveness.
As the owner of a new real estate business, you’re probably aware of the unique characteristics of your industry. You take a personal interest in the real estate market, and you are excited to do great work for your clients, whether buying or selling pieces of property.
But here’s the thing—running a real estate business is about more than making great deals. Accounting plays a major role in staying organized, managing taxes, and making smart decisions in any business.
Why accounting is important for real estate businesses
Setting up your real estate accounting system the right way will enable you to minimize the labor and stress involved in large-value transactions, extreme income fluctuations, employee pay formulas, and government regulations.
These tips are for you if your business is:
- Real estate broker or agent
- Property management
- Building construction
- Residential sales
- Real estate investment management
Another reason to keep accurate financial records is that you will probably have to show them to interested parties at some point. These entities include:
- Government bodies (e.g., the IRS)
There are many motivations to keep accurate books. And, contrary to popular belief, doing so does not have to be a major headache or hassle. With a service like Xendoo, you can outsource your bookkeeping and tax work to focus on what you do best. For more information, check out this post on how to choose the right software to simplify your real estate accounting.
Learn the Regulations
Did you know that it is not just real estate transactions that local and state commissions oversee? These bodies also oversee the financial management of a real estate business, so playing by the rules is essential. Therefore, it’s a good idea to familiarize yourself with their requirements before making any decisions about your bookkeeping system. If the language is unclear, consult a professional accountant who specializes in real estate. It’s far better to spend extra time setting up your accounting procedures properly at the start than trying to untangle a mess when you run into trouble later on.
Choose Who or What Will Do Your Real Estate Accounting
For real estate professionals, the most viable options are:
- Hire an accountant as a full-time employee
- Outsource accounting services
- Accounting software used by management or other designated employees
Hiring an accountant to work in-house is undoubtedly a powerful approach, but it will be costly and likely beyond the scope of many real estate businesses. On the other end of the spectrum, acquiring accounting software to manage the books yourself or amongst your team might be difficult if no one has proper accounting training or the time to dedicate to ensure your books are up to date. Even minor accounting mistakes can add up to bigger ones down the road.
It’s the middle ground – outsourcing accounting tasks to a third party like Xendoo – that will make the most sense for many real estate agents and brokers. This option keeps the costs down while still freeing up your time and utilizing experts to make sure the work is done properly.
Select Your Accounting Method
You have two choices: cash basis or accrual. Once you make a choice, you must stick with it, unless you submit a change request to the IRS. (Your first tax return shows the IRS which one you chose in the beginning — you don’t have to submit any forms for that.)
Cash basis accounting is often preferred by small businesses because it’s easier to maintain, and it tells you how much money you actually have in the bank on any given day. Accrual accounting is usually the choice of larger companies because it portrays a more accurate portrait of your real estate business’s financial performance. Accrual accounting also allows you to better your long-term plan, which is helpful if you are thinking about expanding your business.
Create a Chart of Accounts
This complete index of your company’s transactions is essential for knowing how you stand. It will save you many hours of work when you need to measure performance, generate a report, locate past transactions, or prepare tax returns.
The chart of accounts is organized into categories for easy sorting and retrieval. These categories can be anything you need. Under Assets, they might include Cash, Accounts Receivable, and Vehicles. Under Liabilities, you might have sub-accounts such as Accounts Payable, Loans, and Payroll.
Keep Business and Personal Transactions Separate
Don’t fall into the bad habit of pulling out your business credit card or checkbook to pay personal expenses — or vice versa. Without fail, it will cause more problems than it solves, including inaccurate books, tax mistakes, and cash flow issues.
Real estate accounting shouldn’t be complicated, and this is one of the golden rules that can keep things simple—don’t make personal purchases with business accounts. Opening a separate bank account and a credit card strictly for your business will also make you look more professional to your customers, creditors, and investors.
Fool-Proof Accounts Receivable
Collecting payments that are owed is one of the biggest headaches for small businesses. Prevent delayed and missed payments with an automated invoicing system that:
- Sends invoices promptly
- Includes all the necessary information
- Offers several convenient ways to pay
- Tracks and contacts delinquent payers
With an automated system in place, you’ll save time and avoid missing out on revenue that slipped through the cracks when you were too busy to track it down.
Reconcile Your Bank Account Every Month
Reconciling your bank account means checking that the transactions listed on the bank statement match what you have in your books. This process will identify any discrepancies so you can figure out why they happened and make a plan for avoiding those issues in the future.
Usually, it’s something simple like a financial transaction that’s recorded in your books, but the bank hasn’t processed it yet. However, it could be a more severe problem such as data entry error, misunderstandings of using the bookkeeping system, or even theft.
Figure Out Worker Pay and Taxes
Your business may pay one or more of these types of compensation:
- Salary employee
- Commission employee
- Salary plus commission employee
- Independent sub-contractor
Ideally, you’ll have payroll software that can calculate them all, as well as track them for income tax withholding. Fees to independent contractors may be handled separately by accounts payable since these workers are not, by definition, your employees.
It’s not only the fees that you have to be aware of but also the proper paperwork for each type of employee. You’ll need to learn which tax forms to collect from employees (W-2) and contractors (1099) and how to report their income to the IRS.
At Xendoo, we can also help with payroll processing as an add-on service to our real estate accounting. You won’t have to worry about issuing and filing your W-2s or1099s, which means one less thing keeping you from focusing on your business.
Make Professional Life a Little Easier
If all this seems overwhelming, consider outsourcing to financial professionals. Xendoo specializes in small business accounting. We’ll relieve you of all that work and worry with services that range from real-time bookkeeping to timely financial reports to preparing your tax return.
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.
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.
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.
With so many day-to-day responsibilities that go into running a small business, such as inventory accounting, staffing, bookkeeping, and marketing, it can be easy to forget about the tax deadline. Yet, before you know it, their tax deadline came and went.
Without a filed return, you may be wringing your hands and asking yourself questions on what to do next. Can you even make payments after a down year? Do you have the necessary paperwork? What do you do now that they’ve missed their deadline? Chances are that you are not alone, but don’t panic. Florida allows businesses to file a tax extension, but you can’t wait too long. Putting it off even further could increase your penalties and put you in financial hardship.
We’ll walk you through the process for filing a Florida business tax extension, so you can keep your business moving without the added stress.
What is the Deadline for the Florida Business Tax Extension?
Different deadlines apply for federal and state taxes. Below are the deadlines for Florida’s state tax extension and the federal tax extension.
State Tax Extension
Tax returns for Florida businesses are due by May 1 (the 1st day of the 4th month following the end of the taxable year). However, Florida allows for a six-month extension, which would move the new deadline to November 1st.
Federal Tax Extension
2021 tax deadlines have the following due dates:
- Sole proprietorships and single-owner LLCs: May 17, 2021
- Partnerships: March 15, 2021
- S Corporations: March 15, 2021
- C Corporations: April 15, 2021
A Florida partnership or business has the option to file for a six-month extension, which would move the deadline to the following dates:
- Sole proprietorships and single-owner LLCs: November 17, 2021
- Partnerships: September 15, 2021
- S Corporations: September 15, 2021
- C Corporations: October 15, 2021
Be prepared to pay a deposit for the taxes you owe. You will also be expected to pay your first quarterly taxes for your business on this date.
What Forms Do I Need to File to Apply for a Florida Business Tax Extension?
The form you need will depend on the type of business you’re operating. For the Florida business tax extension, you will first need to complete the form for a federal tax extension:
- Sole proprietorships and single-owner LLCs use IRS Form 4868
- Partnerships use IRS Form 7004
- S corporations use IRS Form 7004
- C corporations use IRS Form 7004
Please note that if you are filing for a federal tax extension, you must also file for an extension with the state of Florida. However, an approved federal extension will not guarantee an extension with the state.
Can I Pay My Balance When I Submit an Extension?
Businesses will have the option to pay their balance when they file for an extension, but all businesses should be prepared to pay at least a down payment for the taxes that they owe.
How Do I Submit My Forms?
It’s faster and easier to file electronically. Form 7004 can either be submitted electronically to the Florida Department of Revenue through Florida’s “File and Pay” e-service system or through the postal service by mailing your completed form to the following address:
Florida Department of Revenue
5050 W. Tennessee Street
Tallahassee, FL 32399-0135
You do not have to send payment with your tax form, but you should be prepared to pay a deposit, as we already noted. Moreover, you should also account for possible late charges or penalties.
Can I File My Extension Electronically?
You may file Form 7004 through Florida’s “File and Pay” e-service system. Most tax preparation software can interface with this system, though if you have trouble, you may wish to contact your software provider or consider filing on paper.
What Happens if I Don’t Pay My Taxes?
If you pay your taxes late, charges will apply in the amount of 10% of your unpaid taxes. An additional 10% will accrue every month in which your taxes are unpaid, up to a possible penalty of 50% of your total outstanding taxes. Underpaying your taxes could also result in interest being applied, though this number varies.
If you don’t owe Florida taxes, you must still file for this fiscal year. Failing to do so can result in a late charge of $50 per month, up to a possible total of $300.
Can Xendoo Help with My Florida Business Tax Extension?
Our bookkeepers and tax specialists are well versed in Florida small businesses and can ensure that your taxes are filed correctly and on time. Plus, Xendoo’s financial experts can keep your records up to date and accurate, so you aren’t panicking but prepared when tax season comes around. If you’re looking for bookkeeping services in Orlando and the surrounding areas, Xendoo can help you to complete forms, meet deadlines, and more.
Xendoo offers tax and bookkeeping services all over Florida, including:
When you need help, we’re only a click away. Reach out to our team today!