Connecting Clean Books to Smarter Capital: The Xendoo + Boundless AI Partnership
The new partnership between Xendoo and Boundless AI bridges the gap between clean, up-to-date books and smart, accessible funding. Business owners gain accurate financials, real-time insights, and priority access to over 150 trusted lenders, all in one place. Together, Xendoo and Boundless AI help small businesses stay organized, secure capital faster, and make confident decisions to fuel growth. Financial Clarity Meets Funding with Xendoo + Boundless AI Partnership Behind every strong business is current, accurate financials. That’s what Xendoo delivers. Our dedicated team combines expert bookkeeping, accounting, and tax support with a proprietary dashboard that puts data-driven insights right at your fingertips. Business owners can track month-to-month trends, monitor key financial metrics, and access timely monthly reports, all in one place. Many business owners come to Xendoo with books that are months or even years behind, and no clear view of where their business stands. Our dedicated catch-up services get your financials current fast, restoring accuracy and making every report reliable. When your books are accurate and up to date, you see exactly what’s working and where to adjust. You know when to hire, when to expand, and where to manage costs to protect profits. Clean books turn ambitious plans into smart, well-timed action. Accurate financials also open the door to funding. Lenders expect transparent profit and loss statements, balance sheets, and cash flow summaries before they approve any loan or line of credit. Without them, funding simply isn’t an option. Xendoo is your trusted financial partner. We bring your books up to date quickly, deliver timely monthly reports, and keep you ready to move forward, no matter how far behind you start. With Xendoo, you have the numbers and the confidence to take the next step when the time is right. That is where Boundless AI makes the next step possible. We are thrilled to announce our new partnership with Boundless AI, a leading intelligent platform that connects entrepreneurs to trusted lenders and matches them with funding solutions built for their business goals. Why Xendoo Partnered with Boundless AI Growth should not stall because financials are not accurate. Xendoo catches your books up quickly, no matter how far behind, with a dedicated team that brings clarity and calm to your finances. But when it’s time to secure funding, the process can stall without the right connections. Once your books are caught up and your financials are accurate, Boundless AI removes that barrier, helping you take the next step with fast, flexible access to capital. Their intelligent platform matches entrepreneurs with funding options from a network of over 150 trusted lenders. It’s fast, flexible, and tailored to each business’s goals and risk profile, exactly what owners need when timing matters most. Together, Xendoo and Boundless AI close the gap between organized books and accessible capital. Your business stays loan-ready with timely profit and loss statements, balance sheets, and cash flow reports, and you gain a path to the funding that helps you hire, expand, or invest when the time is right. Who Benefits From This Partnership This partnership is designed for small business owners with a growth mindset, the builders, planners, and doers ready to take the next step. It’s for founders launching new ventures who need startup capital but don’t have spotless books yet. It’s for companies planning expansions, second locations, or new product lines that match their ambition with the right funding. It’s for seasonal businesses that need extra inventory to meet demand when it spikes. And it’s for owners who are ready to move past outdated lending processes that slow them down. Numbers alone don’t secure funding; numbers plus clarity and the right connections do. This partnership delivers both accurate books and a forward path to capital that supports growth. For Xendoo Customers: Xendoo users now receive priority access to Boundless AI’s capital marketplace, connecting them with more than 150 trusted lenders and funding partners. With books already current, Xendoo customers are in a stronger position to qualify and secure the best-fit funding for their goals. Check funding eligibility in minutes Get matched with the best-fit lenders and capital solutions for their business model Access funding options from $3,000 to $300 million, including lines of credit, term loans, revenue-based financing, and more Learn more by scheduling a free Boundless AI growth capital planning session. For Boundless AI Customers: Boundless AI users now gain the advantage of Xendoo’s expert bookkeeping and catch-up services to strengthen every funding opportunity. With accurate, up-to-date books, you’re better positioned to move quickly and present your business at its best. Get caught up fast with Xendoo’s dedicated bookkeeping team Access timely monthly profit and loss, balance sheet, and cash flow reports Make smarter capital decisions with full visibility into key financial metrics, expenses, and month-to-month trends Learn more by scheduling a free Xendoo accounting consultation. Built for Business Owners At Xendoo and Boundless AI, we know small businesses need more than outdated processes and one-size-fits-all solutions. Owners move fast; they need partners who understand the pace, the pressure, and the constant demands of running a business. We combine real human expertise with advanced technology because timely books and access to funding shouldn’t create more headaches. We’re modern by design. Our teams understand the tools, automations, and integrations that keep businesses moving efficiently and help owners stay ahead. We understand the pain points: falling behind on books, missing chances to grow, waiting weeks for answers from accountants and lenders who don’t understand your industry. Together, we remove that friction. You get timely books, data-driven insights, and a fast track to capital, all powered by smart technology and a team that understands what it takes to run a business today. The Future of Xendoo + Boundless AI The partnership between Xendoo and Boundless AI is just the beginning. Here’s what you can expect in the months ahead: Seamless integration: Direct links between your Xendoo dashboard and Boundless AI’s funding process, so accurate books flow straight into funding applications. Exclusive offers: Special savings and promotions
5 Reasons Bookkeeping Services are Essential For Businesses in an Uncertain Economy
Why Small Businesses Need Bookkeeping Services in a Changing Economy For many business owners, the economy feels uncertain. With unexpected market shifts, rising tariffs on outsourced goods, and steadily increasing costs, the path forward may feel uncertain. In moments like these, the pressure of every decision intensifies, yet the expectations remain. You are still expected to lead with confidence, adapt quickly, and keep the business afloat. In this environment, having reliable bookkeeping services becomes a strategic necessity, allowing you to operate from a place of control. When financials are accurate, timely, and accessible, you gain the clarity to respond with intention. Bookkeeping is now a steady source of insight that supports sound judgment, measured growth, and long-term resilience. What is the role of bookkeeping during a changing economy? Let’s explore how it can directly benefit your business. Here are five key advantages that make bookkeeping an invaluable asset, especially in today’s uncertain economic climate. Identify Financial Trends for Proactive Management When your books are consistently and accurately maintained, patterns begin to surface. Shifts like rising vendor costs, delayed customer payments, or narrowing profit margins rarely announce themselves with clarity. Instead, they appear subtly, through numbers that begin to drift off course. Bookkeeping brings those numbers into focus. Categorizing expenses, tracking receivables, and reconciling accounts regularly creates a living record of your business activity. This allows you to compare performance month over month, spot anomalies, and flag inconsistencies before they turn into larger issues. Early visibility means you’re not reacting after the damage is done, but you are adapting in real time to protect your margins and maintain stability. Financial Preparation for Loans, Grants, and Investors Loans, grants, investor inquiries, or relief programs require detailed financial documentation. Incomplete or outdated books can delay or disqualify you from accessing these resources. Well-maintained records provide a clear picture of your business’s financial health, enabling you to confidently present your case to investors or lenders, and respond quickly when time-sensitive opportunities arise. Visibility To Improve Business Decision Making In uncertain times, every business decision carries more weight. Whether you’re considering a new hire, adjusting pricing, or reworking your inventory strategy, understanding the financial impact in real terms, not broad estimates, is imperative. Bookkeeping provides that clarity by tracking and categorizing every transaction in your business. You see exactly how much revenue is coming in, where money is going out, and how those numbers shift over time. This level of detail allows you to monitor trends, spot inefficiencies, and plan based on facts. Accurate books connect the dots between your operations and your bottom line, so every decision is backed by real financial insight. Maximize Your Tax Savings with Accurate Bookkeeping A strong tax strategy begins with accurate books. When every transaction is recorded and categorized throughout the year, you enter tax season prepared, with clear documentation, organized records, and complete visibility into your financials. This foundation allows your CPA to move beyond basic filings and focus on optimizing your tax position. Whether it’s identifying eligible deductions, planning for quarterly payments, or aligning with your long-term financial goals, strategic decisions are only possible when your books are current. In a shifting economy, this level of preparation becomes a financial advantage. Save Time and Grow Your Business by Outsourcing Bookkeeping Services Bookkeeping requires consistency, precision, and time, pulling focus from the areas where your leadership creates the greatest impact. Delegating this responsibility to a trusted partner allows you to gain those hours back and reinvest them where they matter most: serving your customers, supporting your team, and shaping your next phase of growth. With xendoo Accounting, Bookkeeping, and Tax as your partner, your books are kept accurate and up-to-date by a team that delivers accurate financials on time, every time. Additionally, you gain exclusive access to our advanced technology platform, Insights XP. This powerful tool provides real-time insights into your financial landscape, enabling you to seamlessly track cash flow, monitor expenses, and evaluate your business’s financial health. You will always remain fully informed, empowering you to lead with clarity, focus, and forward momentum. Track your net income, revenue, and expenses month-to-month with Insights XP. Conclusion The ability to manage cash flow during market shifts with confidence is essential to your business’s success. By prioritizing reliable bookkeeping, you empower yourself with the clarity, insight, and preparedness needed to make informed decisions, seize opportunities, and stay aligned with your financial goals.
Low-Burn | Scaling Your Startup S2 E8 with Neyborly’s Ben Seidl & xendoo’s Lil Roberts | E1224
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.
These are the women in Miami tech you need to know | South Florida Business Journal
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
Importance of LIVE events & What’s the Future of Ecommerce | Lil Roberts | Ep. 173
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.”
The Business Owner’s Guide to Paying Less in Taxes
Why Business Tax Planning Matters Welcome to the ultimate Business Owner’s Guide to Paying Less in Taxes. Many small business owners overpay in taxes simply because they miss out on deductions, tax credits, and strategic tax planning opportunities. Whether you’re a freelancer, eCommerce entrepreneur, or agency owner, this guide will help you understand how to legally lower your tax bill while keeping your financials in order. Without a solid business tax planning strategy, you risk paying more than you owe, missing deductions, or worse—triggering an IRS audit. The good news? Strategic tax planning and accurate bookkeeping can dramatically lower your tax bill while keeping your business compliant. What’s New for 2025 Tax Laws? Each year, tax laws change, affecting how much businesses owe. Keeping up with these changes ensures that small business owners claim every available deduction. Here’s what to watch for in 2025: Inflation-Adjusted Tax Brackets – The IRS has adjusted tax brackets to account for inflation, which may reduce your overall tax burden. Section 179 Deduction Limits – Higher limits allow businesses to deduct more on equipment, software, and business-use vehicles. Changes to Business Meal Deductions—The temporary 100% meal deduction has expired and will revert to 50%. R&D Tax Credit Expansion – If your business invests in technology or innovation, you may qualify for new business tax credits. Need help staying compliant? Catch up on bookkeeping before tax season to ensure accuracy and maximize deductions. How to Reduce Your Small Business Tax Bill 1. Keep Accurate Financial Records The biggest mistake small business owners make? Not keeping their books updated. Without proper financial records, you can’t claim business tax deductions or justify expenses to the IRS. Use a bookkeeping service to automate tax preparation and reduce errors. Separate business and personal expenses to avoid IRS scrutiny. Track mileage, home office deductions, and other tax-deductible expenses throughout the year. Keeping organized financial records ensures you never miss a deduction when filing your business taxes. 2. Choose the Right Business Structure Your business entity impacts how much you owe in small business taxes: LLCs & Sole Proprietors – Pay self-employment taxes but qualify for pass-through tax deductions. S-Corporations – Can reduce self-employment tax by splitting income between salary and distributions. C-Corporations – Benefit from a flat 21% corporate tax rate but may face double taxation. Not sure which business structure is best for tax savings? Talk to a tax expert to determine the right option. 3. Leverage Business Tax Credits Tax credits directly reduce your business tax bill dollar-for-dollar. Some of the most valuable small business tax credits include: R&D Tax Credit – You may qualify if your business invests in software development, technology, or innovation. Work Opportunity Credit – Hiring employees from certain targeted groups can earn your business tax credits. Utilizing available tax credits is a key tax-saving strategy that many business owners overlook. 4. Maximize Your Business Tax Deductions Many small business owners leave money on the table by failing to deduct all eligible expenses. Deduct these costs to reduce your taxable income: Business Insurance – Protect your company while lowering your tax burden. Office Rent & Utilities – Deduct costs for maintaining your office or workspace. Employee Salaries & Benefits – Payroll and employee benefits are fully deductible. Marketing & Advertising Costs – Business advertising, website expenses, and social media ads qualify. Home Office Expenses – If you operate from home, deduct a portion of rent, utilities, and internet costs. Maximizing business tax deductions helps reduce your overall tax liability and keeps more money in your business. Top Business Tax Deductions You Should Claim 1. Section 179 Deduction Deduct up to $1,160,000 2025 for business-use equipment, software, and vehicles. 2. Business Meals & Travel Claim 50% of meals with clients and business partners. Deduct 100% of travel expenses for business-related trips. 3. Retirement Contributions Contribute to a SEP IRA or Solo 401(k) to reduce taxable income while building long-term savings. 4. Health Insurance Premiums Self-employed? Deduct 100% of health insurance premiums for yourself and your family. By claiming every available deduction, your business can significantly reduce taxable income. Avoid These Costly Tax Mistakes Avoiding common small business tax mistakes can prevent penalties and lost deductions: Mixing Business & Personal Finances – Use a dedicated business bank account for transactions. Forgetting to Pay Estimated Taxes – If you’re self-employed, make quarterly tax payments to avoid penalties. Missing Tax Deadlines – Keep track of IRS filing deadlines to prevent late fees. Ignoring Bookkeeping Until Tax Season – Catch-up bookkeeping ensures accurate filings and maximized deductions. Avoiding these mistakes ensures your tax filings are accurate and free from IRS scrutiny. How xendoo Helps You Pay Less in Taxes At xendoo, our tax experts and CPAs help small business owners minimize tax liability and streamline business tax preparation. Here’s how we make tax season stress-free: Done-for-you bookkeeping & tax prep – Keep financials organized year-round. Catch-up bookkeeping for past-due taxes – No more scrambling at tax time. Tax-saving insights to maximize deductions – Ensure your business gets every eligible write-off. Hassle-free tax filing with real experts – Compliance and accuracy guaranteed. Keep More of Your Profits in 2025 This Business Owner’s Guide to Paying Less in Taxes has shown that overpaying is optional. Without a solid strategy, you risk paying more than you owe, missing deductions, or worse—triggering an IRS audit. This Business Owner’s Guide to Paying Less in Taxes helps ensure you don’t overpay. With smart tax strategies, you can legally reduce your tax bill and keep more profits. Taxes are unavoidable, but overpaying is optional. By maintaining organized financial records, claiming deductions, and working with tax professionals, your business can legally reduce its tax bill and keep more earnings. Want expert help reducing your business taxes? Schedule a free consultation today.
BBB + xendoo Webinar: Small Business Tax Write-Offs
Key Takeaways from the Webinar Our CEO and founder recently joined the Better Business Bureau (BBB) of South Florida for a webinar packed with practical accounting, bookkeeping, and small business tax write-off tips for small business owners. Whether you’re a startup, an e-commerce entrepreneur, or scaling your professional services, this webinar offers valuable financial advice to help you manage your business finances effectively. Below are some key highlights—but this is just the beginning. Watch the entire webinar for even more insights! How to Vet a CPA for Your Small Business Accounting Needs Choosing the right CPA can significantly impact your business’s financial health. Here are some essential questions to ask: Experience Matters: Ask how many years they’ve been in business and how many business tax returns they file annually. CPAs handling mostly personal tax returns might miss key business deductions. Industry Expertise: Ensure they are familiar with your specific industry, whether e-commerce, professional services, or manufacturing. Transparent Pricing: xendoo’s corporate tax returns start at $1,200, while market rates range from $1,500 to over $10,000—know what you’re paying for. Commonly Overlooked Small Business Tax Write-Offs Many small business owners miss out on valuable tax deductions. Here are some you should consider: Travel Expenses: Business-related travel, even part of a personal trip, is deductible. Section 179 Deductions: Large equipment purchases can significantly reduce your taxable income if your business is profitable. Maximizing Your Tax Savings with Small Business Tax Write-Offs Beyond deductions, there are strategic moves to save more on taxes: Track Personal Expenses: Any business-related expenses paid from personal accounts should be reimbursed and documented monthly. Augusta Rule: Rent your home to your business for up to 14 days per year, tax-free. S-Corp Election: Businesses earning over $30,000 in profit should consider an S-Corp election to save on self-employment taxes. Financial Health Tips for Small Businesses Staying financially healthy is about more than just tax savings: Monthly Financial Reviews: Regularly review your financial statements to keep your business on track. Checks and Balances: Separate financial roles within your team to prevent errors and fraud. Plan Early for Taxes: Start tax planning in Q4 to maximize deductions and reinvest in your business before year-end. Preserving Cash Flow and Managing Business Finances Cash flow management is critical to small business success. Here’s how to keep it strong: Avoid Credit Terms: Require upfront payments or credit card transactions to maintain steady cash flow. Manage Inventory Smartly: Don’t overstock—write off or donate unsellable inventory. Understand Your Cash Needs: Know how much cash your business needs to operate and secure a line of credit for emergencies. Watch the Full Webinar Want more in-depth small business accounting tips and financial strategies? Watch the webinar here to learn how to optimize your finances, improve your bookkeeping, and make your business thrive. Why xendoo Stands Out in Small Business Accounting xendoo isn’t just about numbers—we’re about people. Unlike traditional CPAs, who disappear after tax season, our team offers year-round support, expert bookkeeping, and personalized accounting services. We speak small business because we live it, providing tools and technology to make your financial management seamless and stress-free. Ready to Get Started? Schedule a free consultation today and mention the BBB webinar for personalized accounting and bookkeeping advice tailored to your business needs.
Guide to Tracking and Maximizing Tax Write-Offs
Tax write-offs are one of the most effective tools small business owners can use to reduce taxable income and keep more money in their business. But tracking and maximizing these deductions requires a strategic, year-round approach. This guide will help you understand tax write-offs, common mistakes, and practical strategies to ensure you’re not leaving money on the table. What Are Tax Write-Offs? Tax write-offs, also known as deductions, are expenses that the IRS allows you to subtract from your total income to reduce your taxable income. The result? You pay less in taxes. Write-offs cover a wide range of expenses, but only those that are considered “ordinary and necessary” for your business qualify. Examples include: Office expenses: Rent, utilities, and office supplies. Technology and tools: Software subscriptions, website hosting, and equipment. Travel costs: Flights, lodging, and meals during business trips. Marketing expenses: Social media ads, email campaigns, and graphic design fees. Knowing what counts as a deduction can have a significant impact on your tax bill. However, many small business owners miss out on these benefits simply because they fail to track their expenses properly. Why Tracking Expenses Year-Round Is Critical Many business owners wait until tax season to organize their finances, leading to overlooked deductions and unnecessary stress. Tracking your expenses consistently throughout the year ensures: Accuracy: You’ll have a clear record of deductible expenses when it’s time to file taxes. Preparedness: Avoid scrambling to find receipts or reconcile expenses. Savings: A well-organized system makes it easier to spot missed deductions. Simple ways to track expenses include: Using accounting software like QuickBooks or Xero. Dedicating a business bank account and credit card for all transactions. Keeping digital copies of all receipts. The Most Overlooked Tax Write-Offs Even the most diligent business owners can miss deductions. Here are some commonly overlooked write-offs: Home office expenses: If you work from home, you can deduct a portion of your rent or mortgage, utilities, and internet. Mileage: Track the miles driven for business using an app like MileIQ. Professional development: Expenses for training courses, certifications, and workshops qualify. Business meals: Meals with clients or team members are deductible at 50%. You’ll avoid leaving money on the table by staying informed about these potential write-offs. Strategies to Maximize Your Tax Write-Offs Maximizing deductions isn’t just about tracking every dollar—it’s about being proactive. Here’s how: Plan Ahead: Meet with a tax professional early in the year to discuss strategies tailored to your business. Organize Expenses by Category: Use clear categories like marketing, travel, and supplies to make deductions easier to claim. Review Past Returns: If you’ve missed deductions in prior years, consider filing an amended return. Proactive planning ensures you take advantage of every opportunity to reduce your tax liability. Tools and Best Practices for Streamlining Tracking Simplify the process of tracking your expenses with these tools and practices: Apps for tracking expenses: Try Expensify or Wave for easy expense management. Set up automation: Link your business accounts to software that automatically categorizes expenses. Review monthly: Dedicate time each month to review and reconcile your transactions. Creating consistent habits around tracking will save time and money when tax season arrives. The Role of Professional Bookkeeping Professional bookkeeping is a game-changer for small business owners. Having accurate, up-to-date books means: You’ll never miss deductions due to disorganized records. You’ll have clean financials ready for tax season and beyond. You can make informed decisions about growth and scaling. Bookkeepers don’t just organize your finances—they provide insights that help you plan for the future. Partnering with experts ensures that your business’s financial health stays a priority. Key Takeaways Tracking and maximizing tax write-offs doesn’t have to be overwhelming. You’ll unlock savings and gain financial clarity by staying organized, leveraging technology, and seeking professional support. Ready to start 2025 on solid financial footing? Begin by taking control of your write-offs today. Schedule a consultation to learn how xendoo can support your business’s bookkeeping, accounting, and tax needs.
The Complete Breakdown of a Fractional CFO
What Is a Fractional CFO, and Do I Need One? As your business grows, so do its financial complexities. You may find yourself needing more strategic financial guidance than a bookkeeper or accountant can provide but aren’t ready to hire a full-time Chief Financial Officer (CFO). This is where a fractional CFO can be the perfect solution. But what exactly is a fractional CFO, and how do you know if your business needs one? Let’s dive in. What Is a Fractional CFO? A fractional CFO is a highly experienced financial professional who works with your business on a part-time or contract basis. Instead of hiring a full-time CFO, which can be costly, you gain access to expert financial guidance and strategic planning for a fraction of the cost. Key Responsibilities: Financial Strategy Development: Helps set long-term financial goals and creates actionable plans to achieve them. Cash Flow Management: Ensures you have the liquidity to sustain operations and fund growth opportunities. Budgeting and Forecasting: Provides accurate financial projections to guide your decision-making. Financial Reporting: Delivers insights from your financial data to help you understand your business’s performance. Fundraising and Investor Relations: Assists in securing funding and managing relationships with investors or stakeholders. Risk Management: Identifies financial risks and implements strategies to mitigate them. Benefits of Hiring: Cost Efficiency: Provide top-tier expertise without the expense of a full-time hire. You only pay for the time and services you need. Flexibility: Whether you need help for a few hours a month or on an ongoing basis, fractional CFOs offer tailored services that adapt to your business’s needs. Scalability: Ideal for businesses in growth mode, offering strategic support to scale operations and manage increased financial demands. Expertise Without Overhead: You gain access to a seasoned financial professional with experience across industries, often bringing fresh perspectives and innovative solutions. Do I Need a Fractional CFO? Here are some common signs your business can benefit: 1. You’re Experiencing Rapid Growth Growth is exciting, but it also introduces new challenges, like managing cash flow, planning for expansion, and ensuring profitability. A fractional CFO can guide you through these complexities with a strategic approach. 2. You Need Help Securing Funding If you’re seeking investors, loans, or other forms of funding, a fractional CFO can prepare the financial documents, forecasts, and pitches needed to build confidence with stakeholders. 3. Your Financial Data Feels Overwhelming If your financial reports are hard to interpret or you’re unsure about your profitability and margins, a fractional CFO can translate the numbers into actionable insights. 4. You Want to Improve Profitability Identify inefficiencies, reduce unnecessary expenses, and implement strategies to increase your bottom line. 5. You’re Planning a Major Transition Whether it’s a merger, acquisition, or significant investment, a fractional CFO can provide the expertise to navigate these high-stakes decisions. 6. You Lack a Clear Financial Strategy If you’re operating without a solid financial roadmap, a fractional CFO can help create one, aligning your financial goals with your business objectives. How Does a Fractional CFO Work with Your Business? They typically operate on a flexible schedule, providing support remotely or in person, depending on your needs. They might work with your existing team or independently, focusing on specific projects or ongoing financial management. Engagement Models: Project-Based: For specific tasks like fundraising, restructuring, or financial planning. Ongoing Support: For continuous oversight and guidance over a set number of hours per month. Interim CFO: Filling the gap while you search for a permanent CFO. Is This Right for Every Business? Not all businesses need a fractional CFO. For startups or very small operations with straightforward finances, a bookkeeper or accountant may suffice. However, if your business is growing, evolving, or facing financial challenges, the expertise can be transformative. Conclusion A fractional CFO offers strategic financial expertise at a fraction of the cost of a full-time hire. If your business is navigating growth, managing complex finances, or planning for the future, this could be the missing piece to help you thrive. Evaluate your current financial needs and consider how a fractional CFO could provide the guidance and clarity to achieve your business goals.
5 New Year’s Resolutions for Small Business Success in 2025
Small Business Resolutions The beginning of a new year is a natural time for reflection and goal-setting, and this applies to businesses just as much as individuals. For small business owners, 2025 is full of opportunities to strengthen operations, build deeper customer connections, and achieve new milestones. To help you make the most of this year, here are five impactful small business resolutions designed to boost growth and efficiency while keeping your team and customers at the heart of everything you do. 1. Prioritize Digital Transformation Digital transformation has shifted from being an optional enhancement to a necessary evolution for businesses of all sizes. In 2025, small businesses that embrace technology will find themselves better equipped to adapt to market demands, reduce costs, and improve customer satisfaction. Leverage AI for Strategic Insights: AI tools can elevate your business planning and operations. For instance, tools like ChatGPT can assist in brainstorming content strategies, drafting compelling copy for marketing campaigns, or analyzing customer feedback to identify trends. By integrating AI into your workflow, you can save time and focus on creative decision-making, while improving the quality of your outputs. Strengthen Your Digital Security: As businesses increasingly rely on digital tools, cybersecurity becomes critical. Ensure your systems are protected by using strong passwords, enabling two-factor authentication, and investing in reliable security software. Regularly back up your data and train your team on recognizing potential threats, such as phishing attempts, to safeguard your operations. Click here to read Cybersecurity 101 for Small Businesses: Essential Tips to Protect Your Data. Integrate Cloud-Based Solutions: Transitioning to cloud-based tools for file storage, collaboration, and project management can boost efficiency and accessibility. Platforms like Google Workspace or Microsoft 365 allow your team to access files and work collaboratively from anywhere, making remote work and on-the-go productivity seamless. This also ensures your data is backed up and protected in secure, offsite servers. 2. Enhance Financial Management Sound financial management is one of the most important aspects of running a successful business, yet it’s often one of the most overlooked. In 2025, add to your small business resolutions to make financial organization and planning a top priority. Key strategies for improved financial health include: Regular Financial Reviews: Schedule time each month to review your income, expenses, and cash flow. This habit can help you identify patterns, spot inefficiencies, and plan for upcoming expenses. Tax Planning: Avoid scrambling during tax season by preparing throughout the year. Keep organized records of expenses and consult with a tax professional to maximize deductions. Outsource Accounting Tasks: If managing finances feels overwhelming, outsourcing can save time and reduce stress. Partnering with an expert service like xendoo ensures your bookkeeping and accounting are handled professionally, leaving you free to focus on growing your business. Being proactive about your finances helps you to make more informed decisions about investments, hiring, and expansion. 3. Focus on Customer Retention Attracting new customers is essential, but retaining existing customers is even more valuable. Studies consistently show that loyal customers spend more, refer others, and cost less to retain compared to acquiring new ones. Make 2025 the year you deepen your relationship with your current customers. Steps to enhance customer retention: Offer Personalized Experiences: Use customer data to tailor recommendations, emails, or promotions to individual preferences. For example, an online store might recommend products based on previous purchases. Implement a Loyalty Program: Reward repeat customers with points, discounts, or exclusive perks. These programs can encourage continued engagement and spending. Proactively Gather Feedback: Use tools like SurveyMonkey or Google Forms to collect customer feedback. This helps you identify areas for improvement and shows customers that their opinions matter. Small changes can make a big difference. For instance, a local fitness studio could offer a free personal training session after 10 class visits or send a personalized message to members congratulating them on reaching a milestone. These gestures build trust and goodwill, keeping your business top of mind. 4. Invest in Team Development A skilled, motivated team is a cornerstone of any thriving business. In 2025, prioritize your employees’ growth and well-being to create a strong foundation for success. How to invest in your team: Provide Ongoing Training: Equip employees with the skills they need to excel. Whether it’s customer service training, technical certifications, or leadership workshops, professional development opportunities keep your team sharp and engaged. Recognize and Reward Contributions: A simple acknowledgment of hard work goes a long way. Celebrate wins, highlight standout performances, and consider implementing incentives like bonuses or extra time off. Foster a Positive Workplace Culture: Create an environment where employees feel valued, supported, and heard. Regular one-on-one check-ins and open communication channels can make all the difference. For example, a tech support company might invest in ongoing training for its team to stay updated on the latest software and troubleshooting techniques. Not only does this improve the customer experience by resolving issues more effectively, but it also enhances employee confidence and satisfaction. 5. Expand Your Reach Through Strategic Marketing Marketing is the engine that drives visibility and growth. In 2025, resolve to make your marketing efforts more strategic, targeting the right audience with the right message at the right time. Ways to elevate your marketing strategy: Leverage Social Media Trends: Platforms like TikTok and Instagram continue to dominate, particularly with younger audiences. Short-form video content, behind-the-scenes glimpses, and user-generated content can boost engagement. Invest in Paid Advertising: Consider using tools like Google Ads or Meta Ads Manager to run targeted campaigns. Paid ads can drive immediate traffic and conversions, especially when paired with strong landing pages. Create Valuable Content: Blogs, videos, and downloadable resources establish your expertise and attract potential customers. For example, a fitness studio might create a free eBook with home workout tips to build brand awareness and grow its email list. Local businesses should also tap into community marketing opportunities. Partner with other local businesses for events or promotions, sponsor local initiatives, or optimize your Google Business profile to attract nearby customers. Elevate Your
5 Key Strategies to Maximize Savings
When it comes to taxes, small business owners often think about planning in January. But waiting until the new year to act could mean missing out on critical opportunities to save on 2025 taxes. According to Louis Goldenberg, Director of Tax at xendoo, effective tax planning begins in 2024. Taking action before the year ends ensures you maximize deductions, reduce liabilities, and start 2025 on strong financial footing. Here are five key strategies to help small business owners save on 2025 taxes while staying ahead of the game. 1. Spend Strategically Before Year-End to Save on 2025 Taxes Tax planning can help reduce your taxable income by taking action now. Since taxes are calculated on a cash basis, any 2024 expenses can directly impact your 2024 tax return. Here’s how to save on 2025 taxes through year-end spending: Prepay expenses: Pay for early 2025 costs, such as vendor invoices or office supplies, to offset 2024 income. Invest in assets: Purchase equipment or machinery before December 31 to take advantage of the 60% bonus depreciation available in 2024. For more tips on end-of-year expenses, visit our Tax Planning page. 2. Prepay Taxes to Avoid Penalties and Maximize Savings Avoiding penalties is an essential part of tax planning. Overlooked estimated tax payments can lead to unnecessary fines. Here’s how to stay penalty-free and save: Make your final 2024 payment: Submit by January 15, 2025, to avoid penalties. Pay 110% of last year’s liability: This ensures coverage even if your 2024 income increases. Managing tax payments proactively helps protect your business from late fees and interest charges. 3. Leverage Depreciation for 2025 Tax Savings Depreciation offers a valuable opportunity to reduce your taxable income. With the 60% bonus depreciation rate available for 2024, now is the time to make strategic investments. Purchase long-term assets: Buy tools or equipment to improve operations and qualify for deductions. Optimize your strategy: Take full advantage of depreciation to save on 2025 taxes. Planning asset purchases carefully allows you to maximize your savings while upgrading your business. 4. Hire Family Members for Tax-Free Benefits Hiring family members is a creative way to reduce your taxable income while supporting your family. Louis Goldenberg suggests these steps: Set up a family LLC: Pay your children under 18 for tasks like office work or organizing inventory. Stay below the tax threshold: Payments within the threshold are often tax-free for your child while deductible for your business. This strategy benefits your family and provides meaningful tax savings. 5. Optimize Inventory Management Inventory-heavy businesses can leverage inventory purchases as a tax-saving strategy. Deducting inventory expenses for 2024 purchases can lower your taxable income: Buy inventory in December: Deduct costs for supplies or stock you plan to use in early 2025. Review unsold inventory: Depending on your tax strategy, consider expensing unsold 2024 inventory now or deferring it to next year. Strategic inventory management can lead to significant savings and smoother financial planning. Proactive Tax Planning Starts Now Don’t wait until the new year to think about taxes. Small actions now can lead to big savings when you save on 2025 taxes. Staying organized, prepaying taxes, and leveraging deductions can help reduce liabilities and set your business up for success. Looking for expert help? xendoo offers personalized tax strategies and real-time insights to help small business owners maximize savings. Schedule a FREE 15-minute consultation today to start planning for 2025.
Why You Should Schedule a Tax Planning Call for Your Business Now (And Not in January)
Schedule Your Tax Planning Call Now | Maximize Year-End Savings As the year draws to a close, small business owners face countless priorities, from meeting financial goals to preparing for the new year. However, one task that shouldn’t be overlooked is tax planning. Schedule your tax planning call now to maximize year-end savings and avoid missing out on key opportunities to reduce tax liability. Proactive planning sets your business up for success when the new year begins. January to March Is for Tax Preparation, Not Tax Planning Tax preparation and tax planning serve very different purposes. From January to April, accountants focus on gathering financial documents, reconciling accounts, and meeting tax filing deadlines. This leaves little time for detailed planning. By acting now and scheduling your tax planning call, you can create strategies to lower your tax burden before year-end and reduce stress during tax season. Maximize Year-End Savings by Prepaying Expenses One of the easiest ways to maximize savings is to prepay certain business expenses before the year ends. Since taxes operate on a cash basis, spending in 2024 can lead to immediate deductions. Prepay upcoming costs: Expenses like inventory, equipment, or subscriptions planned for early 2025 can be deducted in 2024. Lower taxable income: This strategy keeps more money in your business. Scheduling a tax planning call now ensures you leverage every deduction to maximize your year-end savings. Reinvest Tax Savings Back Into Your Business Saving on taxes means more resources for growth. Tax breaks can return 20 to 30 cents for every dollar spent, adding up significantly over time. These savings can be reinvested to: Fund expansion efforts. Hire new staff. Upgrade essential tools and technology. By planning now, you ensure those savings work for your business. Schedule Your Tax Planning Call Now | Don’t Wait for January Proactive tax planning is essential to reduce liabilities and optimize expenses. By scheduling your tax planning call now, you can access expert advice and strategies that maximize your year-end savings. Waiting until January means losing opportunities to lower your tax bill and prepare effectively for the new year. Contact xendoo today to schedule your tax planning call and take control of your financial future.
Preparing for Your Business Exit: A Strategic Guide
Businesses can grow quickly, and when that happens, keeping your financials and data in order becomes crucial. Potential buyers want transparency and assurance that your business is running smoothly. That’s where exit planning comes in. By managing your business from day one as if you were going to sell it, you set yourself up for a smooth and profitable transition whenever the time comes. What is Exit Planning? Exit planning is the strategic process of preparing your business for its next phase—whether you’re looking to sell, pass it on to a family member, or wind it down. A well-executed exit plan maximizes the value of your business and ensures a seamless transition. By setting clear goals and building a strong strategy early, you protect what you’ve built and position yourself to achieve your financial goals. Preparing for a Successful Exit Define Your Goals and Timeline Setting goals and a timeline early on is critical for exit planning. Ideally, you’ll want to start this process 3 to 5 years ahead of time. This gives you enough runway to implement the changes that will drive the most value—whether it’s maximizing your sale price, ensuring a smooth handoff, or securing your employees’ future. A timeline keeps you focused. For example, aim to streamline processes over the next year to improve operational efficiency. Whether you implement project management software or improve customer service systems, these steps prepare your business for growth and a successful exit. Clean, Organized Financials and Data: The Foundation for Success Financial transparency and clean data are non-negotiable when preparing for an exit. Potential buyers will scrutinize your business’s numbers, and you need to be ready. Use Accounting Software: Programs like QuickBooks or Xero help keep your financials accurate and organized. Maintain Transparent Financials & Organize Contracts and Taxes: Ensure taxes are up to date, financial statements are accurate, and contracts are in good standing. Organized financials and records show buyers that your business is reliable. Conduct Audits: Regular audits catch issues early and build buyer confidence. Avoid Financial Red Flags: Keep personal and business finances separate, report consistently, and avoid over-reliance on any single client. But it’s not just about the numbers but also the data. Clean customer data, sales trends, and new customer acquisition costs give buyers a complete picture of your business’s health. If you start your business by tracking this data as if you were going to sell it one day, you’ll be in a much stronger position—whether you decide to exit or keep growing. Build Your Business with an Exit in Mind From day one, make your operations efficient and your company culture strong. Standard Operating Procedures (SOPs) keep things running smoothly, even when you’re not there. Buyers want to know that a business will run well in their absence. Just as important is your data strategy. Tracking metrics like customer acquisition costs, lifetime value, and sales trends tells the story of your business. Clean, organized data can be a game-changer—it shows potential buyers where your business has been and where it’s going. Having reliable data can be a lever you can pull to improve business outcomes. Strong data doesn’t just track history; it helps you adjust and fine-tune your business strategy to grow even more. Maximize Business Value The more value you build into your business, the better positioned you’ll be for a successful exit. Focus on key performance indicators (KPIs) like revenue growth, profit margins, and customer acquisition costs. Buyers want to see clear, data-driven insights into your business’s health. Regularly assessing these metrics allows you to make adjustments to optimize operations and drive profitability. Understand KPIs KPIs are unique to each business and are the key drivers of growth. Tracking these indicators—especially customer data and sales trends—will show buyers that your business isn’t just performing well today but has a clear path for future growth. With the right data, you’ll have the tools to make informed decisions that boost your business’s value. Conclusion Effective exit planning isn’t just about having an end in mind—it’s about building your business in a strong way from day one. By defining your goals, gathering and analyzing meaningful data, and keeping your books accurate and consistent, you set yourself up for success—whether you’re ready to sell tomorrow or in five years. Preparation is the key. When you prioritize financials and strong customer data, you increase your business’s value and ensure a smooth transition when the time comes. With xendoo, you’ll have the tools and insights to make your business buyer-ready and maximize its value. Take control of your business’s future today. Schedule a consultation with xendoo, and we’ll help simplify the exit process while positioning your business for long-term success. Your future starts now.
Mastering Your Shopify Accounting Challenges
Running an eCommerce store on Shopify is exciting, but with growth comes responsibility—especially when it comes to accounting. Whether you’re tracking inventory, managing payments, or keeping up with tax requirements, staying on top of your finances can quickly become overwhelming. But with the right approach, you can simplify your Shopify accounting process and stay focused on growing your business. 1. Syncing Your Shopify Store with Accounting Software Integrating accounting software can make managing the finances of your Shopify store much more efficient. Instead of manually tracking sales, expenses, and inventory, accounting software simplifies the process by automating these tasks, making everything simpler and more efficient. What does it mean to “sync” your store with accounting software? Syncing means connecting your Shopify store directly to an accounting platform like QuickBooks or Xero so that your sales data, expenses, and inventory are automatically updated in real time. Without this integration, you’d have to manually enter every sale, expense, and inventory change into a separate system, which can be time-consuming and prone to mistakes. How does this help? Syncing your Shopify store with accounting software pulls all the important financial information directly from Shopify. Every time you make a sale, the transaction is automatically recorded in your accounting system. If you buy inventory, that purchase is logged, and your inventory levels are updated. This integration keeps all your financial data in one place and updates it instantly. Why is this important? Here’s why syncing your Shopify store with accounting software is such a game-changer: Reduces Manual Work: You don’t have to spend hours manually entering sales, receipts, and inventory updates. The system does it automatically, saving you time and reducing the risk of errors. Real-Time Accuracy: Since your sales, expenses, and inventory are updated automatically, your financial reports are always up to date. This means you can quickly see how much money you’re making and spending without having to wait for someone to update your books. Minimizes Errors: Manual data entry can lead to mistakes—whether it’s entering the wrong sales figure or forgetting to update your inventory. Automated syncing makes less room for human error, which helps ensure your financial data is accurate. Easy Reporting: With all your financial data in one place, you can generate reports that show how your business is performing. Whether it’s a profit and loss statement or a balance sheet, having accurate, up-to-date information allows you to make smarter business decisions. 2. Managing Inventory and Cost of Goods Sold (COGS) Keeping track of your inventory is one of the most important parts of running a successful Shopify store. But it’s not just about knowing how many products you have in stock—accurately managing your inventory is key to understanding how much money you’re really making. This is where Cost of Goods Sold (COGS) comes into play. What is COGS? COGS refers to the direct costs involved in producing or purchasing the products you sell. This includes things like the cost of materials, manufacturing, and even shipping to get the product into your hands. It’s crucial because it directly affects your profits. If you don’t know how much each product costs to make or buy, it’s hard to determine how much profit you’re making on each sale. How does accounting software help? Shopify has built-in tools to track how much inventory you have, but it doesn’t always give you a full financial picture. That’s where accounting software comes in. When you pair Shopify with accounting software like QuickBooks or Xero, the software automatically tracks and calculates your COGS for each product. Here’s how it works: Every time you sell a product, the accounting software not only logs the sale but also adjusts your inventory levels and updates the cost associated with that sale. It takes into account things like discounts, shipping costs, and any other expenses related to the product, so you get an accurate calculation of your profit. 3. Sales Tax Compliance Simplified Sales tax can get complicated on the Shopify platform. Different states and regions each have their own rules about when and where sales tax needs to be collected. It’s not as simple as applying one tax rate to every sale—local laws and thresholds vary depending on where your customers are located, making the process more complex than it seems. For example, in some states, you might be required to collect sales tax if your sales exceed a certain amount, but in others, you might not have to collect anything unless you have a physical presence there. Keeping track of these varying rules while also running your business can quickly become overwhelming. How can sales tax automation tools help? Sales tax automation tools, such as Avalara or TaxJar, integrate directly with your Shopify store and handle the heavy lifting for you. These tools are designed to track all of the different rules in each state or region and calculate the correct amount of sales tax for each purchase automatically. You won’t have to manually calculate tax rates for each customer or worry about changes in tax laws. The software stays updated with the latest rules, so you always collect the correct amount. Here’s how it works: Let’s say a customer in New York buys a product from your store. Instead of you having to figure out what the current tax rate is for New York and whether you’re required to collect tax there, Avalara or TaxJar will automatically calculate the exact amount and apply it to the transaction. It will even update your records in real time, so every sale is properly accounted for. Why is this important? Sales tax compliance is not something you want to overlook. If you’re not collecting the correct amount, you could face penalties or audits from tax authorities, which can be costly and time-consuming. By using automation tools, you avoid these risks and ensure that your business is always in compliance. 4. Understanding Payment Gateways and Fees When running a Shopify store, you’re likely using payment gateways such as Shopify
From Startup to Success: How Proper Accounting Practices Fuel Business Growth
It is exciting to start a business, but beyond having a great idea, one needs to work out many things as well. Small and medium-sized enterprises (SMEs) frequently need help shaping their brand in a constantly changing environment where invention, market comprehension, and efficient management are key factors. One crucial thing that may become a success or failure determiner for a startup is how it handles its financial affairs. Good accounting practices not only conform a business to regulations but also create valuable information that can grow the business. This article discusses how entrepreneurial accounting helps progress from a startup to success. Understanding the Essence of Bookkeeping Accounting combines precise and well-kept bookkeeping, which is vital in every flourishing business. Bookkeeping ties these deals together by registering any financial transaction: sales, purchases, receipts, and payments. Maintaining flawless and up-to-date records for small business owners involves keeping records of how income and expenses are split, how cash flow is managed, and how taxes are prepared. Based on my experience, the critical idea of a successful SMB accounting system is in high demand. Bookkeeping hit the boundary of causing calculated mathematical operations, including all processes of systematic transaction recording, accurate expense tracking, and the efforts in managing the cash flow. Getting bookkeeping help from expert firms like xendoo may jump-start your small business’s journey to success. Not only does it aid in time management, but it also guarantees the accuracy of financial records in line with regulations. The fact that xendoo.com exists as an accounting outsourcing firm makes it, unlike an ordinary accountant or calculator. When a CEO outsources the handling of the finances to the experts, they can free time and gratis it again to impelling business growth while upgrading their company’s finances. This allows them to channel their energies into what they do best – their most apt trade. Challenges Faced by Small Business Owners Accounting requirements can be challenging for many small enterprises because they grow without basic operational procedures during the initial business period. Time pressure, resource scarcity, and the lack of professional skills that contribute to the quality of financial management are relatively common obstacles. As a result, wrong entries in bookkeeping may emerge, which can result in financial discrepancies, missed tax deadlines, and, in the end, exactly, threaten the sustainability of the business. In addition, companies with expanding operations and a large quantity of paperwork will see a wide variety in their transactions boom at an equal charge. During those moments, guide bookkeeping systems cannot reply to operational worries, making printing errors vital. Small commercial enterprise owners increasingly turn to outsourced bookkeeping services, which offer a strategic alternative for financially retaining a commercial enterprise, even permitting the owner to pay attention to their number one duties. The Advantages of Outsourced Bookkeeping Engaging a bookkeeping company is like a gift in a box since businesses can handle bookkeeping alone or pay high organization accounting fares. Another main advantage is the availability of talented accountants, no complete staff hiring, and, therefore, managers. These experts ensure compliance with the rules and, if necessary, inspect compliance through audits and checklists. Unlike these, contracting out in one way or another allows the proprietorships to grasp all over their production schemes, connections, and clients to achieve all-over productivity and scalability. Moreover, software of such power helps individuals navigate processes that let them eliminate errors or missteps and take quick actions from the software, making them a top competitor. Driving Business Growth Through Effective Financial Management In today’s competitive world, where rival features are constantly emerging, agility and adaptability are crucial for either survival or growth. Well-structured accounting practices provide small business owners with the necessary inputs for decision-making, identification, and handling of risks, as well as opening up to the opportunities that may be available. Through precise financial records, businesses can focus on the trend of cash flow, monitor expenses, and identify when efficiency is sliding low or the company is overspending money. Furthermore, strategic financial planning empowered by outsourced bookkeeping services supports businesses in devoting the resources where they are needed and choosing the investments that make the best economic sense. All these financial decisions are taken if you deal with expanding operations, new products, or entering new markets, but they create a base for sustainable development and profitability. Moreover, outsourcing the bookkeeping processes will associate the business with credibility and reputation, build trust with shareholders, and invite investment or partnerships. Credible and trustworthy financial reporting will favor transparency and fiscal responsibility, again showing that these features are essential for building a marketplace. Navigating Growth: Solutions Offered by xendoo.com xendoo.com gives small and medium-sized businesses (SMBs) the tools they require to explain and manage their financials and, in turn, to grow sustainably and remain competitive. xendoo.com, being a bookkeeping expert platform, helps local businesses (SMBs) take control of their finances and minimize time and resources that can be used to perform their core business activities. By carefully developing and optimizing tax planning strategies, xendoo.com translates those savings into business growth, boosting financial resources strategically. Apart from CFO services outsourced through xendoo.com, owners and business managers can set strategies that place them in superior decision-making characteristics. SMBs, having a partnership with xendoo.com, could work with a group of relying professionals with the required competencies and tools for the successful handling of financial challenges and for maximizing profit. Success as SMBs see the light at the end of the tunnel with xendoo.com by their side, and it’s just a matter of time before they reach the echelons of successful businesses with confidence and clarity of purpose, finally digging their feet deep in the path to a sustainable future. In conclusion, accounting discipline is necessary for the growth and sustainability of small and medium-sized enterprises. To eliminate difficulties in financial accountability, entrepreneurs should consider the utility of outsourced bookkeeping. Such a move would boost the overall development of the business. It is catching up because effective bookkeeping makes perfect record-keeping, a strategic tool
The Backbone of Growth: Why Bookkeeping is Essential for Scaling Your Business
Small Business Owners are almost always forced to balance various aspects to ensure their operations run smoothly. Apart from taking care of day-to-day chores and making growth plans, business owners always have a lot on their plates. However, one aspect worth highlighting is bookkeeping. While often overlooked and sometimes seen as routine by small business owners, it is the foundation for growth. Bookkeeping is the backbone of growth for small businesses. This article delves into the role of bookkeeping in scaling up small businesses and the benefits of outsourcing this task to professionals like xendoo.com. Understanding the Importance of Bookkeeping In reality, bookkeeping is more than just keying in transactional data; it involves financial analysis to ensure that the business remains healthy financially. Good bookkeeping will ensure that small businesses have accurate, current reporting of financial statistics on a company. It provides a platform to record revenue, control outflows, maintain up-to-date liquidity, and make well-grounded decisions for the future of the business. Bookkeeping is essential and even more critical for small businesses attempting to grow. It lays the groundwork for the financial plan and the budget. Through these tools, one can dedicate time to expansion and areas affected by risks. There must be sufficient information for businesses to address their opportunities and overcome challenges with an enterprise account. Challenges Faced by Small Business Owners Although it is undeniably vital, keeping accurate bookkeeping records for small businesses can be challenging for many owners. The reality is that most small businesses face these challenges: limited time, resources, and skills are among the factors that make it difficult to have accurate and complete accounting records. An issue that small businesses also face is the intricate tax laws and regulations, which make things more complicated. All small business owners, however, have to be wary of poor bookkeeping practices and their consequences. Only complete or reliable financial documents may result in missed chances of taking tax deductions and due date penalties, discouraging the firm from pursuing the tax deductions. Moreover, it can also cause legal problems. It can also be challenging to raise funds or find a pool of investors; thus, the business may need to improve its growth mission. Outsourcing Bookkeeping: A Smart Solution Handing over bookkeeping tasks to a third party can be a very effective way for a small business with bookkeeping struggles to cope. Outsourcing provides the owners with the freedom to run the business and allows experts to manage the financial records. Money is conserved, and resources are utilized efficiently because the books are always up-to-date and accurate. xendoo.com helps small businesses run by providing accounting services according to their specific requirements. Whether you need help with daily bookkeeping duties or catching up on your past-due debt, xendoo.com is always available to help you. Their team of veteran professionals who are aware of the distinctive problems affecting small businesses and may even provide you with all the support that you need to grow. Along with expanding a business comes the escalating number of bookkeeping tasks. Delegating financial reporting to xendoo.com is a sure means of ensuring that the balance of your business’s size and efficiency remains. xendoo.com has helped several small enterprises save time and money by outsourcing their bookkeeping to xendoo.com. Partnership with xendoo.com has resulted in improved operations, the allocation of fewer resources, and, ultimately, better financial outcomes for these companies. xendoo.com Your Partner in Financial Success xendoo.com is not confined to mere bookkeeping services; it is your companion for better business dealings. xendoo.com has a team of experienced professionals actively assisting small businesses’ success. They offer a broad range of services to streamline financial management and enhance growth. The strength of xendoo.com lies in its capability to develop unique and personalized solutions for businesses of all sizes. Whether you’re a start-up business aimed to secure a sound financial basis or a well-established one endeavoring to go big, Xendo.com’s experts plan thoroughly with you, considering your business specificity and defining a roadmap of the firm’s goals. The Spine of xendoo.com‘s services lies in effectiveness and reliability. At xendoo.com, we use current technology and standard accounting procedures to provide timely and accurate financial reports that are always compliant. Besides the function saving you time, it minimizes the chance of mistakes, and you avoid penalties. From identifying cost-saving opportunities to boosting future sales, the experienced Xendo.com advisors are here and ready to offer guidance to help you grow. Besides being just a bookkeeping company, xendoo.com also offers various services catering to all your financial requirements. Whether you need tax preparation CFO services or a catch-up service to repair your finances, xendoo.com can help you. The website xendoo.com allows small enterprises to succeed in this challenging world through custom solutions, strategic advice, and broad services. Are you a business owner seeking profitability and success at the next level? Give xendoo.com a try and experience the difference. Conclusion: Invest in Your Business’s Future with xendoo.com In summary, records management is a default for scaling your business. You can get a snapshot of the financial state of your business if you invest in the art of correct bookkeeping, which will help you make the right choices regarding the future of your business. Through xendoo.com, you can only relax and be sure that there is no possible threat your records might face. About xendoo We share your passion for small businesses and are inspired by your dedication to making your dreams a reality. That’s why we’re committed to providing you with the financial visibility and support you need to thrive. More Than Just Numbers It’s more than simply crunching numbers. It’s about building meaningful relationships with our clients and understanding their needs. Our people-first mentality ensures you receive personalized attention and expert guidance throughout your financial journey. A One-Stop Solution xendoo offers a comprehensive suite of services, including: Full-service bookkeeping and accounting team to free up your time and resources. Hassle-free tax preparation and filing Fractional CFO Services to work with you
7 Last-Minute Tax Tips: Quick Actions Small Business Owners Can Take to Meet the April 15th Deadline
As the April 15th tax deadline approaches, small business owners are on a tight schedule to get their financial books in order and finalize their tax filings. Timely tax preparation ensures compliance with the Internal Revenue Service (IRS) and can maximize potential tax savings. This becomes a critical period in business, and specific strategic actions must be taken so that small businesses remain compliant, maximize returns, and minimize liabilities when filing taxes. This article provides seven actionable tax tips to help small business owners navigate the crunch time effectively. Organizing Financial Records Gathering Necessary Documents and Receipts As one of the basics for filing taxes, small businesses must gather all pertinent financial documents, such as invoices, bank statements, expense receipts, and payroll details. Gathering these documents helps small businesses aggregate and systemize these records to afford a vast, complete record base for use in tax preparation and filing. Utilizing Accounting Software for Efficient Record-Keeping Accounting software simplifies record-keeping, facilitating easier tax preparation and real-time financial tracking. Nowadays, small business owners are privileged to have several programs dedicated to clientele and account record-keeping management. Up-to-date accounting software helps your business to integrate seamlessly with other leading accounting software platforms. It offers you direct access to ensure your business’s financial data is accurate and up to date for filing taxes. Thanks to such tools, financial data can be structured and sorted according to the classification rules in preparation for tax filing. Creating a Checklist to Ensure Nothing Is Overlooked For small business owners, a broad checklist will guard against the usual omissions and assure the inclusion of all required documents and information, which are requisites during the preparation to file taxes. A checklist should comprise the fields of income, deductible expenses, tax documents, and any specific information related to their unique business type. At the end of this financial review, the business owner should have a checklist covering all financial records. Maximizing Deductions and Credits Identifying Eligible Business Expenses Understanding what makes up a deductible business expense helps ensure small businesses make the most of tax-saving opportunities. From home computers and vehicles to social networking-related expenditures to staff and benefits, all business owners should be careful to keep relevant documentation as this will enable them to use the deduction system to the utmost extent. Identifying eligible business expenses helps small business owners take advantage of all possible deductions. Exploring Available Tax Deductions and Credits for Small Businesses The tax code gives an array of deductions and credits meant to support small businesses. Alongside typical business expenses, SME proprietors must check for available pertinent deductions to their sector. For instance, the Small Business Health Care Tax Credit, the Research and Development Tax Credit, and several state and local incentives are all geared towards the same purpose: promoting small businesses. We guide you to strategically employ the most recent tax benefits to lower your taxable income and increase your tax savings. At xendoo, we also keep up with the latest tax benefits to ensure that businesses signed with us get the most out of the benefits. Strategizing to Maximize Tax Savings Strategic tax planning is essential to optimizing small business outcomes. With a thorough knowledge of eligibility for deductions and credits, entrepreneurs can now employ tactics that help them minimize tax liability. This could involve reformatting certain parts of the business systems or making good use of the timing of investments and purchases by aligning them with tax compliance. Our bookkeeping services include expert professional advice on the structure of transactions and operations to maximize available benefits and opportunities by saving more on your tax bill. Navigating Tax Law Changes Highlighting Recent Changes in Tax Laws Affecting Small Businesses Tax laws are constantly changing, and they significantly affect small businesses. Significant updates and modifications are made to initial tax laws as often as monthly. Business owners should consider keeping themselves updated with recent amendments that may frame their filing of return of income, which otherwise can be detrimental to the company due to delayed payments and, in some extreme cases, penalties. Let us help you stay updated with all the changes to ensure your business stays compliant and takes advantage of new opportunities the tax law updates might create. Understanding Implications and Opportunities Presented by Tax Law Updates Effective tax planning considers the implications and impacts of the changes in tax laws and their applicability. Each tax legislation change has pros and cons because of its diverse impacts. Both partnerships and LLCs need to be fully informed about these impacts regardless. These changes bring about essential tax savings if carefully considered. Our book-handling services provide you as a business owner with expert analysis on how changes in tax laws impact your business and alert you to opportunities that will see new provisions for tax savings. Consulting with a Tax Professional for Personalized Guidance Most tax law changes require interpretation. Accounting for complicated tax laws and the high rate of environmental changes leaves small companies with only one option: to reach out to experienced tax lawyers or accountants. These professional consultants can offer personalized advice and tailor it to the specific needs and circumstances of the business so that any unclaimed deductions and credits are discouraged and errors are avoided. Our people-first mentality ensures you receive personalized attention and expert guidance throughout your financial journey. We share your passion and your dedication to making your dreams a reality inspires us. That’s why we’re committed to providing you with the financial visibility and support you need to thrive. We build meaningful relationships with our clients and understand their needs. Utilizing Technology for Efficiency Overview of Tax Preparation Software Options The right tax preparation software can greatly increase efficiency and accuracy during tax filing. In the digital era, small business owners have many tax preparation software applications that can facilitate filing by shortening the time to prepare the returns. Be it user-friendly tools designed specifically for small businesses or more comprehensive solutions covering complex tax scenarios,
Standing Out in a Crowded Market: How to Differentiate Your Business in a Competitive World
Undoubtedly, part of owning a business is understanding that you may face high competition and crowded industries. Knowing how to make your business stand out and what sets it apart from the competition is vital to keep it from fading into the background. In other words, you need to know how to differentiate your business to sell. And once you figure that out, you’ve got to shout it from the rooftops. What Exactly is a Differentiator? The basic definition of a differentiator is a unique set of benefits that sets your business apart from your competition. Understanding what you are good at and highlighting those qualities shows your customers why you are worth putting above your competition and spending more on your product. Overall, differentiators validate your customers in their purchase, and a person who feels confident in their purchase is more likely to continue purchasing from you in the future. Types of Differentiators Though understanding what you’re good at may sound easy, it can be tricky to figure out. Your company can have many types of differentiators. Some of the more popular differentiation factors are based on the customers’ experience, the price of your product, or even your specialization for a specific target market or industry. Pricing your services effectively can also be a powerful differentiator. Say your company’s differentiator is the experience you give your customers and the personality of your business. If you go above and beyond to give your customers a great experience when they are shopping, they’ll remember it. In the best-case scenario, they will tell their friends about how friendly your employees are and how great of an experience they had. Another example could be your expertise in serving a very specific target audience. Say you own a marketing agency that specializes in serving law firms. When a law firm looks for a marketing agency, it’ll appreciate finding one with lots of experience in its field. Questions to Ask to Help Identify Your Differentiators? Having trouble putting your finger on what makes your business special? Don’t worry. We have some simple tips and tricks that can help you. Ask yourself what you do that your competition does not. This is a chance to do market research and analyze how your competition works. Take a look at how they’re advertising themselves. What do they highlight most? What don’t they talk about? Next, list everything your business does that others aren’t talking about (or that you know they don’t do well). Then, write down a list of all the ways you overlap with your competition. Writing down your similarities and differences is a quick and simple exercise that can have long-term benefits and lead to a quick conclusion about your differentiators. Ask yourself what your customers get from choosing your business. This is another way of saying you must be familiar with your customer’s experience. Customer experience: The interaction between a business and a customer over their entire relationship. Map out your company’s entire customer journey. What happens from the first time they hear about your brand through when they become happy, loyal customers? Putting yourself into your customer’s shoes shows you what they’re experiencing as they engage with your business and what benefits they see. From here, you can ask yourself: What type of customers do you help? What are your customers happiest about? Still Having Trouble? Go Straight to the Source Asking your loyal customers what benefits they get from your products or services may be the easiest way to determine your differentiators. Going straight to the source gives you a foolproof and immediate answer that helps you avoid making educated guesses. You might ask them: Did you meet their expectations? Where did you exceed their expectations? Why did they choose you over your competition? What do they like about your business? Got Your Differentiators? Now Brag About Them Knowing how to use your key differentiators is just as important as determining them. Communicating these with your current and potential customers will help them understand how you will help them and what your business stands for. This starts by living and breathing your differentiators. Ensure everyone on your team knows what your business stands for and how you want to portray that through them. The best part of understanding your differentiators is you can use them in your marketing strategy. A solid marketing plan will be useful when capitalizing on your company’s strengths. Highlight these differentiators when creating ads, posting on social media, and talking about your brand, which will let people know what you stand for and offer them. Also, a well-executed marketing strategy will give you a competitive advantage in your industry. Overall, the real importance of differentiation in your business is to stand out and let your customers know what they are getting when using your product. Every few years, you must take a step back and reevaluate the importance and relevance of your company’s differentiators. They might change or stay the same, but keeping them core to your business can put you above your competition. About xendoo We share your passion for small businesses and are inspired by your dedication to making your dreams a reality. That’s why we’re committed to providing you with the financial visibility and support you need to thrive. More Than Just Numbers It’s more than simply crunching numbers. It’s about building meaningful relationships with our clients and understanding their needs. Our people-first mentality ensures you receive personalized attention and expert guidance throughout your financial journey. A One-Stop Solution xendoo offers a comprehensive suite of services, including: Full-service bookkeeping and accounting team to free up your time and resources. Hassle-free tax preparation and filing Fractional CFO Services to work with you on a roadmap of future growth A dashboard that provides real-time financial insights Passionate about your success? xendoo is, too. We provide the financial visibility and support small businesses need to thrive and scale. Let us handle the financial burden so you can focus
Free Small Business Expense Tracking Spreadsheet
Small business expense tracking can be tedious, but it’s one that all companies–from “mom and pop” shops to international enterprises–must do. Fortunately, business expense tracking apps make the job easier. An app is ideal if you have a business with many employees, sales, and tax considerations. For some small businesses, however, paying a subscription fee for an expense tracker may not be feasible in the beginning. In this case, they can use a free business expense tracker or template. While expense tracking will remain manual, it will keep their finances organized in one place. We’re sharing a free business expense tracking spreadsheet that you can use. You can jump to the spreadsheet here and scroll further to learn how small businesses can keep track of expenses for free or at little cost. Why do you need to track small business expenses? What are common business expenses? What is the best way to track expenses for small businesses? Small business expense tracking spreadsheet Why do you need to track small business expenses? As you may know, you’re required to file taxes each year. Come tax time, no one wants to sift through old receipts to account for each expense. Once you start expense tracking regularly, you can eliminate such hassles. Moreover, up-to-date records ensure that you file tax returns accurately. Therefore, should the IRS audit your company, you won’t have anything to worry about. Besides saving you time, you’ll also want to track expenses to take advantage of tax deductions and better financial health. Tax Deductions Everyone has to deal with taxes every year–companies and individuals. You may be eligible for tax deductions for certain expenses or activities. If you qualify for a deduction, you can lower the tax amount you owe and use the savings to grow the business. While it may surprise you, many small business expenses qualify for tax deductions. However, only a small proportion of small business owners benefit from them. This is primarily due to inadequate expense tracking practices and not knowing how much you can save. With reliable accounting software, you’ll have expense reports. These will give you a complete picture of your spending and tax deductions. If you’re unsure what counts as a deduction, you can review our list of over 20 tax deductions for small businesses. Financial health Data from the Bureau of Labor Statistics (BLS) shows that 20% of small businesses fail within the first year. This figure rises to 50% by the fifth year. But there’s a silver lining. Most of these businesses do not fail because there’s no market. Surprisingly, some companies make a lot of money and still fail. Some of the reasons for this include: Financial mismanagement Cash flow issues Unsustainable growth Poor planning As you can see, all those factors are related to finances. By ironing up your expense tracking processes, you can significantly increase the chances of success for your business. You’ll be able to quickly spot unnecessary, unusual, and fraudulent activity that may bring your business down. This way, you can limit business expenses to necessary expenses and prevent costs from going overboard. In addition, you can learn how to read and interpret financial statements. What are common business expenses? Businesses in varying industries have different expense profiles. Even still, there are expenses that almost all businesses have. In the expense tracking spreadsheet, you’ll find areas to record each of these expenses, including: Advertising and marketing – Costs associated with hiring a marketing agency or a consultant. Auto expenses – If you use your car for business, you can expense repairs and mileage. Bank charges – Fees and costs for a business bank account and credit cards. Commissions – They will be recorded here if you pay out sales commissions. Contract labor – This is for businesses that hire freelancers or contract employees. Interest – If you have a business loan, its interest is considered an expense. Legal & professional – Consult with lawyers, accountants, and other professionals. Merchant fees – These are costs that merchants like Shopify and Amazon charge. Payroll, payroll taxes, and processing – Expenses related to paying employees and processing those payments. Recruiting & HR – Costs associated with finding and hiring employees. Training & Education – Expenses related to furthering your or your employees’ business education. Software and tools – Many tools you use for your company are expenses (and tax-deductible). Rent or lease – If you have a physical store or office, you can add it as an expense. Utilities – Many utilities, including the Internet, are business expenses. These are just a few examples. You’ll find more inside the small business expense tracking spreadsheet. What is the best way to track expenses for small businesses? At this stage, you know why it’s important to track business expenses, but how do you do it? You have two options: business expense tracking spreadsheets or apps. 1. Business expense tracking apps The best options for business expense tracking are expense tracker apps. These solutions sync to your bank accounts and business credit cards and categorize your expenses. This eliminates most of the manual work and automates inputting the costs yourself in a spreadsheet. As a result, the only expenses you usually add manually are those you pay for in cash. Such solutions generate expense reports in addition to maintaining expense records. These reports help you understand your spending habits and how they impact cash flow and financial health. You don’t have to set time aside for this. You can review your expenses using a mobile app while on the go. Overall, they reduce the amount of time you spend on expense records. Some business expense tracking apps include: Mint Quickbooks (integrates with xendoo) Xero (integrates with xendoo) Zoho Expense Expensify To learn more about each app and if it’s a good fit for your company, you can view our guide to expense tracking apps here. 2. Business expense tracking spreadsheets While business expense tracker apps may be ideal, they’re sometimes
How Do You Record eCommerce Sales in Accounting?
Many eCommerce owners understand the importance of making sales, but do you know how to record eCommerce sales for your accounting system? Ecommerce business owners have some degree of flexibility that physical storefronts cannot afford. Apart from avoiding rent, an eCommerce model makes it easy to fulfill orders from the comfort of your home or warehouse. However, it can be challenging to set up an eCommerce bookkeeping system. No matter if you sell products online through Amazon, Shopify, BigCommerce, Walmart, or Etsy, you’ll need an eCommerce accounting system to manage finances. Recording sales is a big part of that. What should you know about recording sales for eCommerce? Here is a complete guide for eCommerce businesses. What is accounting for eCommerce? Ecommerce accounting is the process of collecting and reporting financial data like business assets and transactions for online stores. Accounting provides the big picture of your financial health. Ecommerce bookkeeping is the daily management of your financial transactions including sales, expenses, and much more. The first step in accounting for eCommerce is to organize your accounts. Ecommerce entrepreneurs and bookkeepers collect sales tax and financial statements. Accountants can use that data to help businesses make future business decisions. Accounting for eCommerce includes the following categories: Bookkeeping (recording of business transactions) Financial reporting Submitting tax returns How do you record sales in accounting? It’s important to distinguish what it means to record sales vs sales tax. You record sales when a customer makes a purchase. Recording sales tax refers to the tax that customers pay upon purchasing goods and services. Businesses remit sales tax to the local or state government within the specified period. Sales invoices are documents that provide records that show every sale made. They are usually pre-numbered to help bookkeepers and accountants know each invoice’s contents. Even though recording sales and sales tax are two different things, they go hand in hand. For business owners to account for sales tax, they must first determine the cost of goods sold. How do you manage eCommerce finances? Many businesses have achieved success by simply adjusting how they manage their finances. Ecommerce can be unpredictable and highly competitive so having money to scale up your company and cater to necessary costs is crucial. Here is how to manage your eCommerce finances. If you are just starting your eCommerce business, then there are key items you’ll need to set up first, including: A business tax ID number A business bank account and credit card A payment processing system Accounting software Registering your company As an eCommerce business owner, you are responsible for all areas of your business, including losses and debts. So, if you sell a defective product, you are personally liable. Registering your company means that you will be operating your business as a separate entity from your personal assets. It also shows that you’re running a legitimate business and increases your brand awareness. Your business will have a company name rather than your own. Setting up business accounts To register your company with the state, you need to open a business bank account. A business bank account is a valuable asset for a small business because it helps to separate business activities from personal activities. Also, it is more professional to provide your clients with a business name when making payments instead of your full name. Choosing payment processors In the online world, consumers want multiple payment options. There are various payment methods that online shoppers use, including: Credit cards Direct debit cards PayPal Stripe Digital currency Ideally, you’ll want to integrate your payment processing system with your accounting software. This means you can save time manually entering sales and other financial data because the systems work together to pull most of the information you’ll need. It is still a good idea to keep track of your sales with a solid bookkeeping and accounting foundation. Accounting Software There are many choices for accounting software. For online businesses, it’s important to choose a solution that syncs with all your tools and platforms. xendoo plans come with integrations like Xero, Quickbooks, and Gusto. You can sync up your payroll data from Gusto or track expenses easily by using Quickbooks. What are the best accounting practices for online businesses? Clear bookkeeping For small businesses, up-to-date bookkeeping can be challenging. But online bookkeeping systems provide appealing solutions for different types of businesses. Embracing these technology solutions is the best way to save your financial resources. An accounting system will help save time since you will be able to keep track of your finances. Separate business accounts for finances When setting up a business account, it’s important to separate your business and personal finances. Any sales revenue or client payments should go to your business checking account and not your personal bank account. When all your finances are in one account, it is easier to keep track of the clients who have made payments. It’s also a good way to protect your personal finances from liabilities for your company. Hire a virtual eCommerce accountant Hire a bookkeeper with experience in eCommerce platforms like Shopify and eCommerce accounting to manage your day-to-day finances. A reputable bookkeeper will ensure your business stays on track by providing visibility over your cash flow. Bookkeepers prevent errors by taking all your receipts, invoices, bills, and numbers and recording them correctly in your accounting system. Virtual bookkeeping and accounting services are becoming more popular among small business owners. You can work with a professional to reconcile your accounts, update your financial statement, and do all the accounting functions without meeting in person. With a committed bookkeeping team on your side, you can grow your business as you keep an eye on the latest eCommerce industry trends. To get started, schedule a consultation with an accountant or sign up for a free trial to test out xendoo today.
Lil Roberts joins Kison Patel of Boss Move Podcast to Discuss The Elements of Success
Success is not about luck and chance. It’s about visionary leaders who intentionally pursue the critical elements every business needs to be successful. Join Kison Patel from Boss Move Podcast and his guest Lil Roberts, Founder, and CEO in the episode Critical Elements of Success as they talk about the secret ingredients for success and how to get them.
Lil Roberts, CEO Joins The y.FTL Panel at Endeavor Miami
Endeavor Miami hosted their y.FTL panel, the second panel in their y.FLORIDA series. Lil Roberts, xendoo’s CEO was one of the speakers. As Florida’s entrepreneurial ecosystem continues to develop they will continue to shed light on the strength of Florida’s entrepreneurs. Honored to be part of an amazing night with incredible people!
These are the women in Miami tech you need to know | South Florida Business Journal
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
Low-Burn | Scaling Your Startup S2 E8 with Neyborly’s Ben Seidl & xendoo’s Lil Roberts | E1224
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.
Importance of LIVE events & What’s the Future of Ecommerce | Lil Roberts | Ep. 173
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.”
Top 7 Requirements to Secure Ecommerce Funding (Hint: They’re Not What You Think)
In the past, online sellers often had to dig into their own pockets to fund their eCommerce business dreams. Since small or growing businesses are technically high-risk investments, banks and other financial institutions were reluctant to part with their cash to help eCommerce sellers. But times have changed. Today, there is a growing number of funding options eCommerce entrepreneurs can tap into to make even their biggest, hairiest goals reality. Great news, given that 9.5% of businesses without financial capital say it negatively impacts their profitability. Yet, many eCommerce sellers are stuck in their ways, seeking capital from red tape-heavy banks or going without any funding support at all. In fact, a staggering 50% of UK SMEs don’t look beyond traditional funders—and the tunnel vision can definitely cost them. The good news? It doesn’t have to be this way. To prepare you to face your next funding application with confidence, let’s jump into some of the requirements you’ll need. Ready for a flexible funding solution? Learn more about how we help eCommerce owners improve their cash flow. Secure ECommerce Funding the Simple Way How to Fund an Ecommerce Business: Know Your Options What Do I Need to Secure Ecommerce Funding? 1. Proof your business is on the right track 2. Know what eCommerce funding you need (and what for) 3. Showcase your good moral character 4. Get your paperwork in order 5. Show off a little 6. Clean up your credit, stash away cash, and get collateral (but not for the reasons you think) 7. Be mentally prepared to move on The Blueprint for Getting Your Ecommerce Business Funded How to Fund an Ecommerce Business: Know Your Options Ecommerce funding has come a long way since its inception, and there is now a potential capital source to suit every business size and budget. Here’s a quick rundown of the most common eCommerce funding options: Working capital: The seller receives funding to cover gaps in cash flow for day-to-day business expenses like shipping costs, supplies and utilities, or invest in a new product line, ad campaign or additional inventory for peak sales seasons. Cash advances: The seller receives a lump sum and agrees to pay a percentage of their monthly turnover to the lender until the advance is paid in full—note: cash advances aren’t loans. Invoice factoring: The business owner sells their accounts receivables (due invoices) to a factoring company at a discount with fees added on top. The factoring company then releases the funds to them. Crowdfunding: The entrepreneur pitches their idea on a dedicated online platform to the masses, and individuals can choose to invest. There are three kinds of crowdfunding: debt, donation, and equity crowdfunding. Peer-to-peer lending: Usually facilitated through an online platform, the individual receives funding from a person instead of a financial institution. Angel investing: The business owner sells a stake in their business to a high-net-worth individual in return for capital. Are you struggling to decide between cash advances and working capital loans? We can help. What Do I Need to Secure Ecommerce Funding? Thanks to the flexibility of some of the newer, more modern funding options, today’s funding requirements for growing eCommerce businesses tend to be much more flexible than those of traditional funders. While most alternative eCommerce funders won’t throw out your application for lacking things like management expertise, collateral, or credit, there are some standards you’ll have to meet. Let’s break these down: 1. Proof your business is on the right track Alternative funding providers are all about businesses with results that prove they’ve got a promising future. No matter who you acquire eCommerce funding from, there’s one thing your provider will want to know: that they’ll get their money back plus a fair return. While you don’t have to be the next overnight Amazon sensation to prove your worth, you must show you’re a viable business and a low-risk investment. Here are some things you can provide to show your business is worth the investment: Calculations that demonstrate your business has a high ROI, net operating income, and Debt Service Coverage Ratio (DSCR). (More on this in a minute ). Documents proving your business consistently turns a profit. Store reports showing sales volume and minimal product returns. Statements demonstrating you have sufficient liquidity to repay a loan, plus its interest and charges. Records showing you’ve been in operation for at least 12 months. If you meet these requirements, securing funding becomes a win-win situation for everyone, and you’ll have better chances of getting approved. Looking for a faster solution? Find out how you can pre-qualify for up to $1,000,000 in less than 5 minutes. 2. Know what eCommerce funding you need (and why you need it) By the time you’re ready to start sending applications to prospective funding providers, you should have concrete answers to these things: Your reason(s) for applying for external funding. The intended purpose of the cash injection. How much capital you need. Not only will this help narrow down the type of funding you need (and suitable providers), it’ll also show you’ve done your due diligence. Taking on funding is no child’s play, and mistakes in this area can cost you. Funding providers want to know you understand the risks involved and are prepared to take on this commitment. Here’s how to show eCommerce funders you’re ready, step-by-step: Create a documented breakdown of the capital amount you need for each task (adjusted with a buffer for unplanned bills). Work out your return on investment (ROI). Are you making enough returns to make funding feasible? Note long term debt reduces ROI. Analyse your net profit income. How healthy is it? Will you have enough liquidity in your business to operate once you start to repay successfully? Assess whether any existing debts will inhibit you from making repayments. Calculate your Debt Service Coverage Ratio (DSCR) to help you with this task. These are the three equations you’ll need: 1. ROI % = (Net profit) / Cost Of Goods
Selling on Amazon vs. eBay: What you need to know
Ready to start selling your products online? Or have you already built a web presence and you’re looking to expand? From marketplaces like Etsy to building and hosting your own website on Squarespace or Shopify, small businesses have plenty of platforms to sell their products online. But eventually, most professional sellers find themselves asking: What are the pros and cons of Amazon vs. eBay? Amazon vs. eBay: Who has the biggest market for selling potential? By the sheer number of visitors, selling on Amazon is the winner here: 214.8 million people visit Amazon each month, compared to 106.9 million for eBay. However, both of these numbers represent huge potential audiences, so to really make the right choice about selling on Amazon vs. eBay, you’ll want to break it down. eBay’s audience is more international than Amazon: 57% of its revenue comes from international operations. Amazon doesn’t release these figures, but analysts estimate about 33% of its sales are international. eBay is also known for having “niche” customers searching for specialized products and second-hand goods. The real winner here depends on what you sell and who you sell it to. Amazon vs. eBay: Which channel is more competitive? Amazon is much more competitive than eBay. Amazon rewards sellers with the highest-quality items at the lowest price. There are far more sellers on Amazon, and you may be competing with factory-direct prices from China or even with Amazon itself. On the other hand, eBay follows an auction format that will show shoppers many different options, conditions from new to used and shipping options, allowing sellers more opportunities to reach them. eBay advertising is also less competitive and therefore cheaper. Amazon vs. eBay: Which channel offers the best shipping and fulfillment? Winner: Amazon. When sellers opt for fulfillment by Amazon FBA, they’re able to use the retail giant’s warehouses, shipping, and customer service – for a fee, of course. They’re also eligible for Amazon Prime and the benefits that come along with it. Just remember that you may have to pay sales tax in those states if you use Amazon’s warehouses. Make sure you follow eCommerce bookkeeping tips to keep your records in order. While domestic sellers are responsible for their own packing and shipping on eBay, the company does offer its Global Shipping Program. This allows sellers to use its “hubs” to ship internationally, with eBay taking care of the customs forms and import fees and providing tracking. This is another reason eBay is so popular with international sellers. Amazon vs. eBay: Whose fees reign supreme? Overall, most sellers find that eBay’s fees are lower. But this doesn’t tell the whole story. Both platforms’ fees depend on what’s being sold, the type of account you have, and more. On Amazon, you’ll likely want a Professional Seller account, which will run you $39.99 per month. You’ll also pay a 15% commission on Amazon, plus a closing fee. If you go with Amazon FBA, you’ll pay those fees as well. On eBay, you’ll pay about $0.35 for each listing you create. With a $28-per-month Basic Store account, you’ll get 250 free listings. Once your item sells, eBay takes only a 10% commission. However, this doesn’t include payment processing, while Amazon does. You’ll also then need to figure out the shipping yourself. Once again, the answer to the age-old question of selling on Amazon vs. eBay depends on your sales volume and type of product. Here’s one point for eBay, however: One survey found that eBay was ranked number one by sellers in terms of ease of use, customer service, and profitability – while Amazon came in seventh. The verdict: Amazon Pros: Reach a large audience Amazon FBA is a convenient option for most sellers Easy to use interface and tools Cons: Highly competitive Slightly higher fees Less freedom over branding, product descriptions, and policies Which eCommerce sellers are Amazon right for? Sellers with a high volume Sellers with high-profit margins Sellers of non-specialty items The verdict: eBay Pros: Easier international sales and expansion Control over branding, listings, and return policies Lower fees Cons: No domestic shipping program Smaller audience Less straightforward user interface Which eCommerce sellers are eBay right for? International sellers Sellers of used and customized items, collectibles, and niche products Sellers who desire more freedom over the selling process You can even decide to settle the Amazon vs. eBay debate by selling on both platforms. No matter what you choose – and especially if you decide to sell on both – you’ll need expert eCommerce online bookkeeping to keep your books in order and ensure you keep up with sales tax laws. At xendoo, we work with eCommerce sellers on both platforms to manage bookkeeping and accounting, so they can focus on what’s important: selling!
Pros and Cons of Putting Your Small Business on Amazon
Ecommerce is booming. Total revenue will reach nearly $4.6 billion in 2021 and grow at an annual rate of 4.6% over the next five years – reaching $5.6 billion by 2025. It’s easy to see why owners of small and medium businesses are asking themselves how they can get a piece of the eCommerce pie. One popular option—the Amazon small business marketplace. In the first quarter of 2021, 55 percent of the units sold on Amazon were from third-party sellers. For a company with sales of more than $300 billion, that’s more than pocket change. But what are the pros and cons? And is it worth the trouble? What is Amazon marketplace? The Amazon marketplace is an eCommerce platform that allows independent vendors and sellers to sell their goods on Amazon. The platform allows Amazon to forego the typical retail model, where it sources materials, then produces and stores each of its products until shipment. Instead, third-party vendors put products on Amazon and take care of the details, while Amazon gets a cut of the profits. What are the pros of selling on Amazon as a small business? There’s no question that Amazon is popular with small businesses: In 2018, nearly three-quarters of Amazon sellers had between one and five employees. And Amazon for small business does have plenty of benefits, like the following. You can reach a larger audience One of the biggest benefits of selling products on Amazon is that it can connect you with a wider audience: There are more than 200 million Amazon Prime members worldwide, and that’s not counting site visitors who don’t subscribe to Prime. That’s a huge audience for Amazon small businesses. Amazon can take a lot of the work off your plate Getting set up with Amazon marketplace is relatively easy: Just sign up and add products to the catalog. If you want Amazon to do more work for you, you can sign up for Amazon FBA, or Fulfilled by Amazon, which allows you to use Amazon’s warehousing, packaging, shipping, and customer service. Amazon has tools to help you sell In addition to Sponsored Ads – which actually make Amazon the third-largest digital advertiser behind only Google and Facebook – Amazon small businesses have access to MerchantWords, a proprietary keyword research tool. It uses actual Amazon data to help you optimize your product names, descriptions, and ads. Amazon provides technical support Amazon Seller Central is the platform’s support team for Amazon small businesses. It’s available 24 hours a day, although most sellers will be required to submit a request and wait for a callback. Still, most sellers receive a prompt response and are happy with the support they receive What are the cons of selling on Amazon as a small business? Amazon Marketplace sounds pretty great, right? For many small and medium businesses, it is. But it also has a few drawbacks you should be aware of. It can be expensive With charges for selling, referral fees, and Amazon sales tax, the cost of selling on the marketplace can quickly add up. Sellers without a monthly plan will pay 99 cents per item sold, while those with a Professional Plan pay $39.99 per month. If you opt for extra features, like Fulfilled by Amazon, expect to pay more fees. If you are looking to start selling online there are options to secure ecommerce funding. It can be time consuming Getting set up with Amazon Marketplace is easy – understanding how to be successful there can be more time-consuming. Diving into the tools Amazon provides and optimizing your product take time. Plus you’ll need to figure out Amazon bookkeeping and accounting, inventory management, and more. The competition is fierce There were 1.1 million active Amazon marketplace sellers in the United States alone in 2019. Amazon Marketplace is also incredibly popular with Chinese merchants, some of whom sell products at super-low, factory-direct prices. You’ll even compete with Amazon’s own private label brands. And fake reviews abound on the platform, with competitors using bots to write thousands of five-star reviews at once. It’s Amazon’s world, you’re just selling in it Some Amazon small businesses feel they don’t have much power over the selling process. There are reports of Amazon punishing businesses for selling at lower prices on other marketplaces, or pressuring them to sign up for extra services. Should I use Amazon for my small business? There’s no one-size-fits-all answer to whether you should sell products on Amazon. Certain categories, like personal care, beauty, and home goods, seem to have greater success on the platform. Businesses with high margins, who can afford to give Amazon its cut, can also do well. However, success with Amazon for small business depends more on your ability to figure out what works for you than on the type of business. xendoo can help dive into your books and help you make a sound decision on whether to sell on Amazon Marketplace. If you’re already a seller, we can ensure your books are in order – allowing you more time to focus on selling. [av_sidebar widget_area=’Blog Post Disclaimer’ av_uid=’av-om2w’]
Tips to Increase Retail Sales for Your Small Business
This past year has been incredibly hard on retailers, especially small businesses. Retail sales plunged more than 20% between February and April last year, but with pandemic restrictions easing, the industry is starting to recover. As folks are venturing out more, it’s the perfect time to refresh yourself and your sales associates on tips to help increase retail sales and work towards building your business back up! Make your customers feel safe Many people are finding it tough to return to their pre-pandemic selves quickly and are still moving with caution. Help them feel at ease by reminding them they are safe in your shop. Take note of what protocols major retailers are following. For example, hand sanitizer can be available at the entry and the register. Use signage to share your mask policy, cleaning protocol, and any policies on the dressing room or how to use ‘tester’ products. The safer customers feel, the more likely they are to purchase, which will help increase your retail sales. Curbside pickup and local delivery Many stores began offering curbside pickup and local delivery in 2020, and most customers have become accustomed to these services. Keep in mind that today’s customers value convenience, so continue to offer these alternative methods moving forward. Train your staff While refreshing your team on cross- and up-selling, ensure they are up to speed on the basics, too. For example, do they need a reminder on any specials or promotions you offer? Ensure they are experts on your store’s products and are as informed as possible on your customer service expectations. Please encourage them to think ahead about how they might answer specific questions customers might ask, including all frequently asked questions. If your staff can put your customers at ease, they are more likely to purchase from you than your competitors. The savviest sales associates know how to cross-sell and up-sell. When a customer is interested in one particular item, the savvy salesperson suggests a corresponding item to go along with it. “If you like that, you will love this, too!” Up-selling suggests a more expensive alternative to the item the customer is already interested in buying. “Oh, that one you have is great, but have you seen this (more expensive) version?” If your customer leaves with an item they will enjoy more and feel like they got a great deal, they are more likely to be a repeat customer, which can further help increase retail sales. Merchandising Make the way you merchandise or display your products a priority. Keep your displays fresh and regularly move merchandise around the store, creating a sense of newness and having your regular customers look at products they may have otherwise passed. Feature new and seasonal products near the entrance. Keep everything clean and organized, and ensure it’s easy to navigate the store. Keep popular and inexpensive items near the registers to encourage impulse purchases during check-out. It would be best to keep up on your inventory accounting to ensure that those displays have enough product. Make it personal 80% of companies are more likely to purchase from a company that offers them a personal experience. So, how might your store offer a personal touch? Branded items are a great way to connect with your customers creatively – ensure your logo or taglines are on bags, receipts, and automated email receipts. Consider slipping an extra treat into shopping bags, too. Perhaps a small button or magnet with your logo and website. And the best way to get personal is to connect with your customers. Make it a priority to chat, remember their names, and take note of the types of products that interest them. Loyalty programs Customers love loyalty programs! Many small businesses still enjoy using classic “buy 10, get 1 free” style punch cards, but there are great digital-focused loyalty programs, too. Options like Loopy Loyalty and Smile.io encourage customers to shop with you again and engage with your brand. And get creative! These programs offer ways to customize the program to match your branding and speak to your customers. As you build your loyalty program, ensure you aren’t creating an unattainable goal. Earning $5 for every $25 you spend feels much more exciting than earning $1 for every $50, right!? Make time to analyze Small retail store owners are notoriously stretched for time, but it’s essential to set aside time to review what sales tactics are working and what aren’t. Look at the numbers and strategically think about what might have led to increases or dips in sales on any given day. This is where having professionals like the team at xendoo manage your retail bookkeeping can go a long way. You can quickly review the numbers through accurate and timely reports and determine the most effective sales strategies. It’s an exciting time for retailers to have a fresh start! Seize the opportunity to train your staff on new sales tactics, refresh your inventory offerings and displays, and get creative with new ways for your customers to engage with your brand. By outsourcing your bookkeeping and accounting to the team at xendoo, you’ll save time and money, and you’ll finally have the data you need to be more strategic about increasing retail sales and remaining profitable.
How to Setup Your Online Store to Integrate Accounting Software
You’ve set up your online store set, and orders are starting to come in. But in your rush to pack, ship, and sell, there’s a good chance you haven’t made time to integrate accounting software with your eCommerce software. By downloading a third-party app plug-in, you are just a few clicks away from saving time and money by automatically sharing data between your accounting and eCommerce programs. It sounds like a lot of work, but it’s simple! Most popular online accounting software options like QuickBooks, Xero, and FreshBooks all have a menu where you can search for compatible app plug-ins. And most popular eCommerce programs like Shopify, Squarespace, and WooCommerce have a corresponding app available from a third-party software developer. So you can easily install an app to sync the two programs! What to Look for E-Commerce Accounting Software As soon as you begin spending or making money, it’s time to set up your eCommerce bookkeeping and start accounting. There are many affordable online eCommerce accounting software options available. Programs such as QuickBooks Online or Xero store a business’s financial data in the cloud and are always connected to the internet. In addition, they automatically receive and update your data by connecting to your bank accounts. Sounds easy, but not all accounting programs are the same, and there is a lot to choose from. When deciding which program is best for you, you’ll want to consider the following: Compatibility – Does the program work with all of the devices you plan to use? How many users can be simultaneously logged in? Can your international team members log in, too? Cost – Many options have a free plan, but the pricing goes up as your business scales and grows. Support – What are the customer service options? Does the program offer expert bookkeepers and accountants you can hire to take on the work when you are ready to delegate? Can they help you file your taxes? Additional Services – All of the programs offer basic bookkeeping and financial reporting, but what kind of extra offerings does the software have? Some eCommerce trends include hefty employee management solutions to help with payroll, time tracking, and benefits, while others may offer project management tools. Some offer payment processing through third-party partnerships. Integrate accounting software with your eCommerce program – Make sure the two programs sync so you can limit the amount of data entry you are doing. Ideally, you will be able to eliminate manual data entry of sales, invoices, customers, products, and more. Most popular eCommerce software options, such as Squarespace and Shopify, integrate easily with third-party app plug-ins compatible with accounting programs like QuickBooks and Xero. Once synced, your inventory, orders, customers, and shipping can be automatically updated and will stay accurate. And getting started is easy! Most of these integrations only require a quick authorization and a few clicks to import your eCommerce data into your accounting program. Below is a list of some popular eCommerce platforms that offer integrations with popular online accounting software programs. Keep in mind that this list isn’t exhaustive, but these are the most popular eCommerce platforms that easily integrate with accounting software like Xero and QuickBooks Online. Squarespace WooCommerce BigCommerce Shopify Square Integrating your accounting software with your eCommerce platform can help save you time and money. You’ll be able to get an instant view of your financials, allowing you to plan your sales strategy more effectively. As your eCommerce business grows and you decide to sync your eCommerce software with your accounting software, there are many aspects of eCommerce and accounting that you will want to keep in mind for this integration. For example: Inventory Management – You will want to be able to connect multiple sales channels such as your brick & mortar’s Point of Sale, your Online Store, and your Pop-up location to ensure stock levels always stay up-to-date. Choosing the correct payment gateway – Does the available option match your needs? Will international business be supported? Tax settings – How does the software help you with your sales tax reporting? What role does it play in monitoring important tax deadlines? Why You Should Outsource Your E-Commerce Bookkeeping and Accounting As your eCommerce business grows, you will want to outsource your bookkeeping and accounting to professionals. Even though app integrations with the best accounting software for small businesses are great, many automatic tools such as your monthly reconciliation can be inaccurate. Even a minor error in your bookkeeping can have a ripple effect and lead to everything from your financial reports being inaccurate to your marketing budget and your tax payments. It’s best to have an experienced set of eyes on it! These professionals can even find tax breaks you were missing and help you save even more money! Spend more time growing your business and less time crunching the numbers by working with the team at xendoo. [av_sidebar widget_area=’Blog Post Disclaimer’ av_uid=’av-om2w’]
9 Common E-Commerce Accounting Mistakes to Avoid
As a new business owner, you have a lot to manage on your eCommerce site. From making sure that customers can easily find what they need to creating an easy path to purchasing your goods, it may leave less time to tidy up the little things in your accounting processes. However, these mistakes and misses can snowball into significant issues that could cost your eCommerce business profits and customers. To make sure your business is running efficiently from top to bottom, here are nine common eCommerce accounting mistakes that you need to avoid. Not adjusting your inventory levels Inventory levels play a significant role in your profit & loss, balance sheet, and cash flow forecasting. Not adjusting your inventory levels is a mistake that can carry over from one accounting cycle to the next and affect all your reports. It may be time-consuming, but doing a physical stock take is essential to avoid this mistake. Fortunately, technology is on your side, and there are many excellent inventory control applications to help you streamline the process. Sticking with spreadsheet or paper ledgers While it is good to have a backup, manual entry, especially those not saved to the cloud, can cost you when it comes to tax time. As your business grows, you will need more than a digital spreadsheet to keep your accounts in order. Manually combing through all your sales and entering them is highly time-consuming, and chances are, as an eCommerce business owner, it is time you do not have. Unless you are meticulously keeping up with sales tax and the like, you may end up costing yourself more than you make. If you haven’t already, it is time to upgrade to accounting software like Xero for eCommerce or QuickBooks for eCommerce. Both of these accounting softwares can sync with your website, do a lot of the grunt work for you, and help you avoid this eCommerce accounting mistake. Still, you will need to have an eye on your accounts to make sure everything is accurate. xendoo’s eCommerce bookkeeping service can help ensure your books are up to date and accurate, giving you more time to focus on your business instead of your books Mixing business accounts with your personal accounts While it may seem convenient to use your personal accounts for business-related purchases, mixing the two can create more problems down the line than it solves. Maintaining separate business and personal accounts is the best practice. You can take advantage of several tax benefits with a business account. It allows you to keep the proper line of sight over business income and expenses while avoiding accounting nightmares and potential liability issues if you get audited. Not monitoring your cash flow You may be seeing how much money your eCommerce business is generating, but are you keeping track of how much you are spending? Account reconciliation compares your internal financial records against monthly statements from external sources such as banks, credit cards, or other financial institutions, to ensure they match up. Knowing how to reconcile your accounts is essential for the financial health of your eCommerce business. You need to reconcile your accounts to provide a clear picture of how much cash flow you have to reinvest or to pay yourself. If not, making this eCommerce accounting mistake could have you missing out on new investment opportunities, or worse, realize that you don’t have enough money to run your business. If it all sounds a little complicated, then xendoo can help you get a clear picture of your financials and the overall health of your business. No accounting for fees Many sales channels have different fees, and if you are selling through multiple channels like Amazon, Etsy, eBay, etc., you probably are starting to lose track of which channel charges what. If you aren’t keeping track of all these different channels and adjusting your pricing for each, you may be losing more money than you make. Accounting software can help you manage the multiple-fee structures for each channel. An accountant can help you avoid this eCommerce accounting mistake and figure out what you need to charge to make a profit for every order and which channels you should prioritize. Not keeping track of your overhead expenses We mentioned the importance of tracking your inventory, but you also need to keep track of all the overhead expenses like advertising, shipping, website domain licensing, etc. All these monthly charges can add up fast. If you aren’t tracking your overhead expenses and comparing them to ensure they are not growing at a different rate than your sales, your eCommerce business may be without valuable resources to keep it running. Every day you can’t make a sale, you don’t make a profit, and worse, you may lose potential and existing customers if they go to our website and it isn’t there. Not choosing the right business entity type Picking a legal entity may not be as fun as naming your eCommerce business, but you must try to get it right the first time. Every business entity comes with its own tax benefits, and misclassifying your eCommerce business means you could be missing ways to maximize IRS tax savings. Plus, misclassifying your business is one eCommerce accounting mistake that could lead to compliance issues that can cost you. An accountant can help you choose which business entity is the most beneficial. And you’re just starting an eCommerce business, an accountant, like the ones at xendoo, can help you switch to a business entity that provides you with the most tax breaks. Not making time to focus on your accounting Accounting and bookkeeping are huge time commitments, but putting them off is one of the worst eCommerce accounting mistakes you can make. For all the reasons mentioned above, you need to take the time to follow these eCommerce bookkeeping basics, so your financial records are in order. If you’ve been avoiding your books, it’s not too late. xendoo provides catch-up bookkeeping for eCommerce
Starting an eCommerce Business? Bookkeeping Basics You Need to Know
Just like a traditional brick-and-mortar business, your eCommerce business needs a good bookkeeping system for essential functions like tracking revenues and expenditures and filing tax returns. There are a lot of compelling reasons you need a bookkeeper, and for most small businesses, it’s generally more cost-effective to outsource the accounting and bookkeeping services to professionals like xendoo that work with small businesses than trying to do it in-house. If outsourcing just isn’t feasible for your business, here are some bookkeeping basics for eCommerce that you need to know before trying to do it yourself. Choose an Accounting Method The first thing you’ll need to do is decide which of two accounting methods is right for your business – cash basis or accrual basis. The key difference between the two lies in when revenues and expenditures are recognized on the books. Let’s take a quick look at the differences between them. Cash Basis: Transactions are recorded at the time the money enters or leaves the bank. If an invoice comes in during December but you pay it in January, the entry would go on January’s books. Accrual Basis: Transactions are recorded at the time they are made, regardless of when cash enters or leaves the bank. An invoice dated in December would go on December’s books, even if it gets paid in January. Cash basis accounting is simpler and easier to keep track of, but accrual basis gives a more accurate picture of the long-term profitability of the business by factoring in accounts payable and receivable ledgers. Most small business owners choose cash basis, but if you do, you may have to adjust your accounting software. QuickBooks, for example, defaults to accrual basis. Once you choose a method, you have to stick with it unless you are willing to go through a lot of government red tape to change it. Record Your Transactions Every time money comes into or leaves your business, whether it’s a retail sale, an invoice from a supplier that gets paid, or a loan payment, it has to be recorded “in the books.” Your “books” could be anything from an old-fashioned paper ledger to an Excel spreadsheet, or a full suite of accounting software. If you opt for manual bookkeeping, you’ll need to import all your information from your bank account into your ledger. Most good accounting software will interface with your bank and automatically enter transactions in your books for you, which can save you a lot of time. Whichever way you go, it’s crucial to stay on top of data entry so that you have an accurate picture of your business’s financial health. Categorize Your Transactions You’re probably starting to see a trend in these bookkeeping basics for eCommerce, and that is to stay organized. Every transaction that gets recorded has to also be categorized for financial reports and tax returns. The two most basic categories you’ll need are revenue and expenses, although you’ll almost certainly want subcategories of each for your reports to be useful. You’ll need to be able to tell the difference between expenses for rent, payroll, utilities, debt installments, etc. Another category that you’ll probably want as an eCommerce seller is “Revenue – Returns and Allowances.” This would encompass things like merchandise returns and credit card chargebacks in the event of fraud, which are not expenses, but rather debits to your revenue as essentially a reversal of the sale. However, if your credit card processor charges you a chargeback fee for the return, this would be an expense separate from the return itself. Monitor Your Budget If you haven’t already, you need to create a realistic budget that factors things like the seasonality of the business, how much inventory stock you will need to support your sales, cost of goods sold, and overhead expenses like rent, payroll, and utilities. Remember: a budget should not reflect what you hope will happen, but what is likely to actually happen. Many owners tend to be overly optimistic in their budgets and assume a best-case scenario for everything, which rarely happens. Once the budget is in place, the company’s financial reports have to be checked against the budget regularly to see whether the business is over or under-performing your expectations. This can be simplified by using a budget calculator spreadsheet that uses formulas to compare actual revenue and expenses to budget figures. That way, you can see at a glance where your budget might need adjusting. Reconcile Bank Statements Each month when the bank statement arrives, it’s crucial to compare what the bank says you have with what your internal books say you should have. This is done on a transaction-by-transaction basis and is critical for detecting problems early. If you find a discrepancy, you need to identify and resolve it quickly because it may be a sign of theft or another internal issue, or there may be a problem with the way you are keeping your books. Check Your Cash Flow Cash basis accounting gives a pretty clear snapshot of cash on hand, but if you’ve chosen accrual basis accounting, your books may show more cash on hand than you really have at the moment. This can be a problem if you need to pay a big invoice, so it’s important to run weekly or monthly cash flow reports to see the real amount of cash on hand and implement good inventory control policies. Save & Organize Records If there’s one bookkeeping basics for eCommerce rule you need to follow when you are starting out, it’s save everything. Good record-keeping is essential for any business, so you should save everything – receipts, invoices, statements, etc. You might just need to refresh your memory about a transaction you can’t remember, or you might need to validate your tax return for an audit. You might notice that you are paying more than usual for a particular supply item and want to see what you paid for it in the past. You just never know, so
Choosing the Right Accounting System for Your Shopify Business
Editor’s Note: This post was originally published in October 2017 and has been updated for accuracy and comprehensiveness. Whether you’re brand new to online retail and trying to decide how to set up your eCommerce business, or you’ve been around a while and simply reached the point where your DIY accounting solution just isn’t cutting it anymore, xendoo’s innovative suite of business offerings can help you. xendoo can get your small business accounting running like a well-oiled machine so you can focus on what’s important – growing your business. To be competitive in the new economy, cloud-based accounting is no longer a luxury; it’s a necessity. Here are some of the best accounting systems for Shopify that can help get your business on track. QuickBooks Online QuickBooks Online is the cloud-based version of the popular and versatile QuickBooks business accounting software. Quickbooks Online accounting system for Shopify allows you to access your account information from any web browser, and the API creates a seamless interface that links directly to xendoo’s platform. That means you can easily organize and sync all of your critical financial data with no tedious manual data entry. Additionally, Quickbooks Online for Shopify allows you to easily create and send invoices, receive payments, pay bills, and manage payroll. Track income and expenses Capture and organize receipts according to your chart of accounts Download and organize bank account and credit card transactions Print checks Create and send invoices, as well as receive payments Print financial reports Tax organization Xero for E-commerce QuickBooks is a popular accounting system for Shopify, but it may not be the best choice for everyone. Xero is another cloud-based accounting solution that will appeal to a lot of Shopify store owners. Xero is fast, simple, and powerful. It can sync with hundreds of third-party applications for point-of-sale, inventory, and much more. It also offers a mobile app for convenience and allows customers to create an unlimited number of users. From within the Xero accounting software for Shopify, you can manage your accounts payable, accounts receivable, budget, and category or division tracking. Customizable dashboard Create invoices and quotes and receive payments Track inventory Bill payment Expense management and project management Create and print financial reports Bank account reconciliation Highly scalable for small or growing businesses A2X for Shopify A popular middleware, or “connector,” application that links your Shopify store with your cloud-based accounting system is A2X for Shopify. It automatically posts your Shopify sales and fees directly into QuickBooks or Xero, saving you hours of tedious work each week. That also means no more stressing over why transactions don’t match your bank deposits because A2X eliminates data entry mistakes. Automatically post store data into QuickBooks or Xero Automatically reconcile bank statements Automatically make adjustments for fees and refunds Create and print summarized statements TaxJar for Shopify A major time vampire for business owners who sell on Shopify is state sales tax compliance in the wake of Wayfair, Inc. v. South Dakota (2018), which requires online sellers to comply with sales tax requirements in each state where they do business. TaxJar accounting system for Shopify will streamline your sales tax compliance process by showing you where you should be collecting sales tax according to economic nexus laws and generating return-ready reports. It can even auto-file your returns for you if you want. Calculate sales tax based on each state’s nexus Daily updates allow for timely return filing AutoFile option for automated return filing Display fines and penalties for delinquent filing Compare actual collections to what should have been collected Shopify Apps In addition to your accounting software, Shopify offers over 1,000 plug-in applications from their app store to help you with managing inventory, shipping, reporting, and much more. However, we suggest that you fully explore the capabilities of QuickBooks, Xero, A2X, and TaxJar before making any decisions about additional applications. A lot of functionality might be duplicated, and you certainly don’t want to pay for the same thing twice. In addition to tons of helpful plug-ins, Shopify also features a profit margin calculator. Just plug in your cost of the item and a markup percentage, and Shopify will calculate the sale price, your gross profit in dollars, and your gross margin. Outsourcing Your Bookkeeping and Accounting Even though these accounting systems for Shopify can make life much simpler for sellers than even just a few years ago, it can still sometimes feel overwhelming. If you begin to feel like you might be in over your head, you should consider outsourcing your accounting and bookkeeping to a small business accounting firm like xendoo. There are a lot of good reasons to outsource your accounting for your Shopify eCommerce business, and it’s more affordable than you might think. xendoo’s accounting team works with small business owners just like you to provide expertise and insight into the accounting needs of e-commerce businesses. xendoo can take care of everything from weekly bookkeeping to filing business taxes for you, and our flat monthly fee is less than half of what you’d probably pay an accountant. xendoo’s mission is to give you the peace of mind of knowing it’s being done right, and free your time to focus on what’s important – growing your business. Sign up for a free trial today. [av_sidebar widget_area=’Blog Post Disclaimer’ av_uid=’av-om2w’]
eCommerce Trend Report: 2020 Recap & 2021 Forecasts
Editor’s Note: This post was originally published in March 2020 and has been updated for accuracy and comprehensiveness. For all the challenges the economy faced in 2020, it may come as something of a surprise that overall domestic retail sales saw their highest rate of growth in over two decades during 2020. What probably isn’t much of a surprise to anyone who has been paying attention is that that strong growth was driven entirely by eCommerce trends in 2020, with online sales accounting for 101% of that growth. The COVID-19 pandemic drove more and more shoppers to online retailers in lieu of brick-and-mortar stores, and the good news is that that movement shows no sign of slowing down in the eCommerce trends for 2021. The bad news is that sales tax compliance continues to be a thorny issue for online retailers as they struggle to keep up with state regulations. Figures represent US domestic sales unless specifically noted as global figures. Consumer Migration to E-commerce Overall retail sales in 2020 topped $4.04 trillion, representing a 6.9% increase over 2019 sales of $3.78 trillion. That was driven by a massive 44% increase in online shopping, nearly three times the previous record eCommerce year-over-year growth 2019 of 15.1%. A significant portion of that increase was also due to first-time online shoppers. E-commerce market penetration leaped from 15.8% in 2019 to 21.3%, representing a sharp increase from its previous trend of 1-2% growth per year. In 2020, eCommerce transformed from being a convenient alternative to brick-and-mortar stores for some consumers to an essential part of daily life in an age of pandemic. Holiday Shopping Following the overall trend toward online shopping, domestic holiday shopping showed similar rates of year-over-year growth. Out of $861 billion spent online in 2020, over $200 billion of sales occurred during the holiday shopping months of November and December. Thanksgiving Day online sales rose 21.5% to $5.1 billion Black Friday online sales rose 21.5% to $9 billion Cyber Monday online sales rose 15% to $10.8 billion Total Cyber-week domestic online sales reached $60 billion Hottest E-commerce Segments in 2021 Fashion and online apparel remained the largest segment of online shopping globally in 2020, followed by toys and electronics. Online apparel sales rose 15% to $760 billion globally, projected to reach $1 trillion by 2025 Toys rose 12% to $590 billion in global online sales, projected to reach $766 billion by 2025 Consumer electronics saw $542 billion in global online sales, a 28% increase over 2019. Food and personal care items came in fourth at $468 billion Furniture and household appliances totaled $362 billion globally. Largest Retailers Unsurprisingly, Amazon retained its throne as the undisputed king of online retailers, with a whopping 38% of all domestic sales, down slightly from its 2019 share of 43.8% share in 2019. Other online retailers like Walmart and Target managed to chip away at Amazon’s lead, but are still behind by a wide margin. Amazon – 38% Walmart – 5.3% eBay – 4.7% Apple – 3.7% Home Depot – 1.7% Smartphone Sales Smartphones continued to increase in popularity as a platform for online shopping, representing 54% of online sales in 2020 and projected to reach 73% in 2021. 79% of smartphone owners have made at least one online purchase with the device, and 80% of smartphone owners have used a smartphone to look up product information or reviews while shopping in a traditional brick-and-mortar store. It’s clear that the prevalence of smartphones will continue to be a driving force in eCommerce for the foreseeable future. Trends to Watch Whether you have something like a Shopify store or sell through your own website, it’s imperative to stay on top of technology and predict online consumer product trends so that you can stay one step ahead of the competition. To that end, we’ve identified some eCommerce future trends that are definitely worth keeping an eye on in 2021. BOPIS (Buy Online, Pick-Up In-Store) and Curbside Pickup This trend dominated much of 2020 because it combined the convenience of online shopping with the immediacy of in-store shopping. While some shoppers will revert to in-store shopping, this trend is here to stay. Augmented Reality (AR) Augmented reality emerged as a player in eCommerce in 2020, with, for example, some furniture retailers allowing consumers to upload a photo of their living room and see how a particular piece would look in it. Digital Wallets & One-Touch Purchase Many consumers have been hesitant to make the move to online shopping due to concerns about fraud, while others were put off by the inconvenience of having to enter a credit card number. Digital wallets like ApplePay and GooglePay have alleviated many of those concerns by making secure one-touch purchases from smartphones. However, most security concerns are pushed to the wayside for convenience, and this eCommerce trend is probably here to stay. Cryptocurrencies Although controversial and not widely adopted currently, cryptocurrencies are poised to become a force in eCommerce in the not-too-distant future. Because Bitcoin is both a currency and a payment processor, it can facilitate secure transactions across borders at transaction fees of 1%, as opposed to the typical 2-3% merchant fees charged by credit card processors. Some large online retailers like Overstock.com already accept Bitcoin. More Sales Tax Headaches In response to declining state sales tax revenues from the move to online shopping, the US Supreme Court ruled in South Dakota v. Wayfair (2018) that each state could tax online retailers to create a replacement revenue stream individually. Online retailers must now monitor and comply with 50 different sales tax laws, creating enormous accounting overhead. This is yet one more reason to outsource your bookkeeping service and accounting to a professional firm like xendoo as a cost-effective solution to this regulatory nightmare. Sales tax processing is just one of the many affordable services available in xendoo’s small business offerings. xendoo can also ensure you are getting all the eCommerce tax deductions you are entitled to as an online retailer.
Pass-Through Deductions: What It Is and Who Qualifies
One of the best small business-friendly aspects of the Tax Cuts and Jobs Act (TCJA) is the 20% deduction you can take on your income tax if your business is a pass-through entity. Here’s what you need to know about it. What Is the Deduction The TCJA was passed in 2017 and first applied to 2018 tax returns. Provision 199A of that law states that you can deduct 20% of your “qualified business income” which was earned from a “qualified trade or business.” What Is a Pass-Through Entity Any business structure that allows you to receive income as an “owner’s draw” rather than as a regular employee is a pass-through business. The money is “passed through” from the company account to your personal account. You only pay income tax on it with your personal return; you don’t have to file a separate return for the business. Pass-through entities include:• Sole proprietorship• Partnership• LLC (limited liability corporation)• S-Corporation However, there are some restrictions. Taxable Income Restriction • Less than $157,500 (single, married filing separately, head of household) or $315,000 (married filing jointly): you qualify for the full 20% deduction.• $157,500 – $207,500 or $315,000 – $415,000, respectively: your deduction may be less.• More than $207,500 or $415,000, respectively: you are not eligible for the deduction. Specified Service or Trade Restrictions What your business does may disqualify it from the deduction. Here’s the list of excluded fields, as issued by the Treasury Department in August 2018: • Health• Law• Accounting• Actuarial science• Performing arts• Consulting• Athletics• Financial services• Brokerage services• Any business where the principal asset is the reputation or skill of one or more of the employees or owners• Any business that consists of investing and investment management, trading or dealing in securities, partnership interests or commodities But don’t give up if you see your business in one of these categories, because there are numerous exceptions. For example, in the Health category, healthcare providers who provide services directly to patients — such as doctors and dentists — are not eligible. On the other hand, health clubs, spas, medical research companies, and those who sell pharmaceuticals or medical devices may qualify for the deduction. In the case of businesses who both provide services and sell products, eligibility is determined by sales:• Less than $25 million in gross receipts and less than 10% of your business comes from disqualified services; or• More than $25 million in gross receipts and less than 5% of your business comes from disqualified services Employee and Property Restrictions There are two further conditions that could affect how much of a deduction you can take. They are:• Business that pay W-2 wages• Business that owns “qualified property” such as real estate or other tangible assets that can be depreciated If your business fits either of these descriptions, your deduction will be the lesser of:• 20% of qualified business income (or the “tentative deduction”); or• The greater of:o W-2 wages paid x 50%; oro W-2 wages paid x 25% + the unadjusted basis (cost) of your qualified property x 2.5% Still confused about the pass-through deduction? Your xendoo small business expert can clear things up, answer your questions, and help you get every tax break you deserve.
eCommerce Sales Tax: 5 Steps to Making It Worry-Free
Selling online used to be a breeze. Get the order, collect the money, ship out the product. No hassles with sales tax like a brick-and-mortar retailer have to deal with. Nowadays, unfortunately, it’s up to 46 times more complicated for an eCommerce business. That’s because 45 U.S. states plus Washington, D.C., now require you to collect and submit sales tax — each with its own set of laws that you need to follow. The process can be daunting — and time-consuming — for a small business. Here’s how to make it more manageable. 1. Determine which states you need to collect tax in. As of June 21, 2018, that’s any state where you have customers. Before that date, each state had a set of criteria known as “sales tax nexus,” which determined whether you would have to collect tax in that state. The criteria included such things as the physical location within the state, distributor, or sales rep location and total sales value. However, the old rules are now out the window. With the Supreme Court’s decision in favor of South Dakota (in the case of South Dakota v. Wayfair), physical presence in the state is no longer required. Many questions on how this will play out remain unanswered. For example, the decision includes language that the state tax system should not discriminate against or place an “undue burden” on out-of-state businesses. It may take states a year or even longer work out their new rules. In the meantime, learn more about sales tax nexus here. 2. Determine which products qualify as taxable. Again, rules vary by state. Some of the most common non-taxable items are: • Grocery food • Clothing • Certain types of books (textbooks, religious books) • Prescription and non-prescription medicine • Magazines and subscriptions • Digital products (books, music, movies) 3. Register for state sales tax permits. In each state where you’ve determined you need to collect sales tax, apply to the state’s department of revenue for a sales tax number. You need this number in order to legally collect tax from customers. Make a note of each state’s tax due dates. You may have to file monthly, quarterly, or annually. This information will be included with the tax permit the state sends you. In most states, your sales tax permit is also a resale certificate. That means you can buy items tax-free at retail, as long as you intend to resell the items. 4. Update your website’s shopping cart to collect sales tax. For sales within the state where you’re physically located, check whether your state uses origin-based or destination-based taxation. • Origin-based: You charge the state, county, and city rates that apply to the location you’re shipping from. • Destination-based: You charge the rates that apply to the shipping address. In some states, shipping charges are also taxable. Most shopping carts allow you to add this function. If you use drop shipping, you’ll have to work with your dropshipping supplier to decide who will be responsible for collecting sales tax. 5. File your return. File a return for every state and every due date, even if you had zero sales in that state or time period. If you don’t file, you could be slapped with a penalty, or even lose your tax permit. Be prepared to fill in the tax return form by county, city, and other special taxing districts. This is where automated software can make your life a lot easier. Save money by filing on time or early. Some states give a discount for filing on time. And some need a few days to process payments. So even if you file on the due date, the money won’t reach the state’s bank on that day and you will be charged a late fee (plus interest on the amount of tax due). xendoo makes processing sales tax easy for eCommerce businesses. By integrating with both your business software and your bank, transactions are entered automatically in your books. Plus, each entry is tax coded as it happens, so there’s no last-minute rush at filing time. With the hassles out of your way, your time and energy are free to focus on growing your business. [av_sidebar widget_area=’Blog Post Disclaimer’ av_uid=’av-om2w’]