Posted on

A short case study: How a small business owner thrived during COVID

schedule consultation

A short case study: How a small business owner thrived during COVID

I want to share a story with you…

Back in 2020 (which feels like eons ago), as the pandemic progressed and small businesses nationwide were starting to really feel the effects, a business owner came to me for help.

Although her hemp stores were performing well pre-COVID, when I got on Zoom with her, I could feel the worry in her voice. She wasn’t sure how her stores would survive all the changes, uncertainty, and rounds of quarantine.

I quickly realized that the core of the problem was that she had no idea what her financial data was – her books were a mess, and she didn’t have data on individual stores’ performance. That’s why I preach the importance of financial data all the time, especially in uncertain times like these.

The solution to this business owner’s problem started with helping her gain visibility into her numbers – we helped her gain a granular view of the financial performance of each store and each product. We also helped her get a granular view of her expenses by location and category.

The results

  • Even during the worst times of COVID, she didn’t have to let anyone on her team go.
  • We advised her to switch her business legal entity to a better-suited option, which gave her additional tax savings and benefits (resulting in increased profits.
  • With the increased visibility, we were able to plan out the growth of each store strategically.

FINANCIAL KPIS OPT-IN

Learn the 7 KPIs all founders should use to assess their company’s performance to address areas where the company is underperforming.

The moral of the story?

The point is that you don’t have to be at the whim of what the markets do. If I had one piece of advice, it would be to organize your financial data so that you can have a crystal clear picture of how your business is really performing. Your individual financial statements may not be as accurate and may not be giving you the full picture of what’s really going on. Getting clear and detailed financial data is the only starting point that will allow you to make effective decisions for your business.

🔍 Here are some resources that can help:

1. On Thursday, September 1st at 11 am EST; I am hosting a Live Q&A to show you how to improve your odds of financial success in your business. I’ll be answering any specific questions you have about business finance, accounting, taxes, recession, etc.

I’m limiting the RSVPs to 30 people since we only have an hour, and I want to make sure we have time to address your questions. So RSVP now before space runs out.

2. The 7 KPIs (Key Performance Indicators) download is a resource we created as a quick guide for business owners to know what numbers are most important to track (and what those numbers mean). If you haven’t seen it before, I recommend downloading it and giving it a read. You can find it here.

3. Schedule some time to chat with us. If you are at the growth or scale stage, it’s time to consider adding a CFO to your team. As you know, having an internal CFO can be extremely expensive and stressful to hire. Our Outsourced CFO service allows you to get my expert experience (20+ years of financial executive experience) for a fraction of what you would normally pay. Let’s jump on a call to chat more about the value and ROI.

The original article was published on LinkedIn on August 30, 2022.

Follow me on LinkedIn Ramona Cedeno.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Three Strategies to Protect Your Business From Cyber Attacks

schedule consultation

Three Strategies to Protect Your Business From Cyber Attacks

I must confess that I love asking Siri to change the songs or dimmer my living room lights. Siri is on all the time, and so is my microphone. We are asked to check the box that asks, “I agree to this privacy policy,” without even reading it. But should we as business owners worry about our data if there is so much control on the internet? The answer is definitely.
As a business owner, your data is your most important asset. Your systems are packed full of confidential financial information about you and your clients. If this information isn’t secure, then you could lose the trust and reliability you have spent your entire career building. Additionally, your client’s private financial information could be left completely exposed.

Cyber attacks happen to small and medium companies

Data breaches are the most common form of cyberattacks to occur to businesses. Small to mid-sized companies are even more exposed. Often, these businesses will utilize outdated software to protect their data, but these can be highly vulnerable to cyber attacks of any kind. 

Okay, so now that we know the risk, how do we prevent this? The first and most important thing to ask yourself is where my data is most vulnerable. By assessing your current protocols, you will fully understand where you need the most protection.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

After doing this try the following steps:

  1. Encrypt and back up your data: Encrypt your data in a way that will secure your more sensitive data, make sure to have digital copies of this data as well.
  2. Train your employees: It is integral to this process that your employees have had in-depth training in data protection.
  3. Reassess and revisit: Continually assessing your protocols and updating them based on the changes in cybersecurity is the best way to ensure your business is as secure as possible.

Implement these solutions to protect your company from cybersecurity attacks. If you don’t have a procedure for handling the security of financial information within your business, it is vital to consult a professional to ensure that you are protected. Get in touch with us if you have any questions.
PS – I share news, articles, tips, and free guides on financial planning, taxes, cash flow and other finance topics for business owners on these channels. Let’s connect!

To be the first to know about new financial news, resources, and tools, sign up for FiBrick’s newsletter.

Follow me on Instagram or LinkedIn. Check out my website.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Effective Finance Strategies for Every Startup Company

schedule consultation

Effective Finance Strategies for Every Startup Company

Managing a startup company requires energy, time, money, and dedication. A small business should have substantial financing and resources to keep the business functional and growing. To make the business succeed, business owners should learn how to manage the business cash flow effectively.

The following are five finance strategies that can help every startup to handle their money properly:

1. Recognize failures and utilize them to emerge 

Startups can face several failures with their financial strategies. This can happen when the business offers what it can do rather than what the market needs. Small businesses bleed a lot of money without a comprehensive plan and then end up failing with their ideas. 

Another cause of failure that startups can experience is due to poor handling of cash inflows and outflows.

Every business owner should develop and implement sound and effective financial strategies for their business to succeed. They should evaluate their failures—the strategies that didn’t work—and create a better plan to handle the business finances more efficiently.

2. Formulate a financial planning strategy

An integral part of effective financial planning includes evaluating the factors that may impact the strategy negatively. Implement predictive models based on the prior collection strategies if the company experiences a cash flow issue. With comprehensive and careful planning, you can create a better position dealing with creditors. It is also crucial to set a fund against cash flow issues and improve the line of credit.

3. Have an effective debt collection strategy

Bad debts and outstanding invoices can make it challenging for a business to pay for goods, services, and other utilities. Without an effective debt collection strategy, the business will be on the edge of failing. With less cash coming in and debts continue to accumulate, the business will not be able to pay their staff and suppliers, and the overall business operation may be hampered. 

To promote an effective debt collection strategy, ensure that your customers understand the payment expectations. Offer discounts for those who will pay in advance or will make prompt payment. Providing an easier payment option for your customers and clients will help improve your cash flow. 

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

4. Use invoice finance

Invoice finance refers to an agreement that a business will deal with an invoice finance provider to finance its unpaid invoices. With the help of this strategy, a business can have access to cash instantly instead of waiting for a long time for the customers to pay their invoices.

There are two ways of accessing money using this strategy. One is invoice factoring, wherein the company allows the whole process to be handled by a third-party. The third-party will advance the needed amount, deduct a certain handling fee, and provide the needed cash flow. 

Another one is invoice discounting, where the business can keep the invoice collection in-house but with access to the associated cash, as long as the company can prove that their collection is ongoing. 

Both these invoice finance strategies can help a startup to generate funds and leverage the business. If you choose to use any of these strategies, make sure first to know how it works.

When it comes to the process of handling the money of your business, it is best to do thorough research and make sure that well-recognized banks approve the business.

5. Strive to specialize in meeting your customers’ needs

One of a business owner’s essential skills is providing top-notch service to meet the customer’s needs. Make sure to focus on what you know and continuously improve it for your customers. Outsourcing can be an effective strategy, too. It can help your business to extend the business processes and optimize your resources. 

The company should be able to provide the best offers when it comes to product development, marketing, customer service, and innovations. Remember that today’s businesses continue to emerge and innovate; thus, your company should also be well-adept with the current trends.

Conclusion

It is a must for every business to develop and implement a clear and compelling set of financial strategies. This is to ensure that handling money and other business operations will be done accordingly. Business owners should be cautious and bold when it comes to managing financial matters in the company.

To help you manage your cash flow effectively, we highly recommend getting assistance from a team you can rely on. FiBrick is a people-centric accounting firm that is dedicated to helping startups and scale-ups. We offer a wide range of services to manage your cash flow effectively. Get in touch with us today!

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Cash Flow Management: A Guide for Tech Start-Up Owners

schedule consultation

Cash Flow Management: A Guide for Tech Start-Up Owners

Running a tech start-up involves assessing the performance and financial health of your business. You have to prioritize cash flow management, which is a process of monitoring and optimizing the movement of cash throughout your business. 

Many business owners, unfortunately, make the common mistake of overlooking their revenue and expenses. Learn more about cash flow management and the problems your start-up company can encounter, and ways to solve them by reading this article.  

What Is Cash Flow Management?

Cash flow management is the process of monitoring the amount of money coming into and out of your business. As a tech start-up business owner, you have to avoid extending cash shortages when managing your cash flow. It means you have to prevent having an overly large gap between your cash inflows and outflows so you can ensure you can pay your bills and stay in business for as long as possible,

What Are Some Cash Flow Problems I Can Encounter?

As a start-up business owner, you may be running on a limited budget. You may have to deal with financial emergencies in the form of slumps in sales that may lead you to take drastic measures. 

You may also lack the luxury of favorable credit terms since you still have to develop a credible record of your accomplishments. As a result, it may be challenging for you to find willing lenders to loan you and accomplish your financial goals. 

In addition, your stock is important in the continuous operation of your business. Your suppliers may demand cash payments for your goods until they trust you enough to supply products on credit. 

You may also have to deal with late payments from customers. All of these cash flow problems may affect your adherence to your financial obligations. As a result, your business will gradually underperform until you file for bankruptcy. 

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

How Do I Solve These Cash Flow Problems?

The best way to face these cash flow challenges is to develop a cash flow management plan. You should develop a projection that lets you prepare your working capital better, so you can satisfy your operating expenses and maintain a strong positive cash flow record. As a result, you make a positive impression on your creditors.

Don’t forget to maintain a consistently detailed and accurate cash flow record to help you scale your business and invest more capital in expansion. By properly tracking your cash flow, you can hire new employees, obtain better equipment, and even open up new branches.

You may also keep cash flow prediction reports, which can allow you to determine expected cash inflows. They may help you forecast periods when you may receive low cash inflows and make the necessary measures to maintain your operations even while experiencing financial challenges. 

Conclusion

Cash flow management is a crucial aspect of operating your start-up business. It helps you know the availability of cash in your business and lets you prepare for potential financial problems. It can also dictate your success or failure, and failing to prioritize it can even lead to excess debt or bankruptcy. Fortunately, you can save yourself from these problems by keeping the information above in mind. You can also work with experienced accountants to help you with this task.

If you’re looking for business accountants who can help you with cash flow management, then you’ve come to the right place. At FiBrick, we specialize in offering accounting services for tech start-ups like yours. Contact us to learn more about how we can help you!

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Everything You Need to Know Before Forming Your Own LLC

woman typing on laptop
schedule consultation

Everything You Need to Know Before Forming Your Own LLC

woman typing on laptop

One of the most popular choices of small business owners is an LLC (limited liability company). This is largely due to tax advantages, liability protection, and flexibility of management that typically comes with this kind of business entity. In order to achieve success in business, there are several things you need to know before looking to get funded and starting your LLC.

What is an LLC?

LLC is a type of business structure wherein entrepreneurs get pass-through taxation and limited liability protection. The LLC is similar to a corporation in that it exists legally as an entity that’s separate from its owners. Sometimes, owners are also known as members. It’s usually not possible to hold owners personally responsible for any liabilities and debts of the business.

Pass-through taxation is allowed for by an LLC as the taxation of income doesn’t happen at the entity level. A tax return for the LLC is necessary for LLCs who have two or more owners. Losses or incomes of the LLC that appear on that return get passed to the owner/s. Owners must then report loss or income on their own personal tax returns, then pay any due tax.

What are the benefits of forming an LLC?

There are several options available for anyone looking to start a business. This includes forming a corporation, a sole proprietorship, or entering into a general partnership. Another option is the limited liability company. There are several advantages to making the choice to go into an LLC, such as:

Pass-Through Taxation

Taxes for LLC are not paid on the business entity level. Any loss or income is “passed-through” to the members, which are then reported on their personal income tax returns. Due taxes are paid on an individual level. It’s very helpful to hire an accountant as part of a team when you begin forming your LLC.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

Management

Corporations typically fall under the management of a board of directors. LLC members can either manage things themselves or elect their choice of management groups.

Limited Liability

There is no personal liability on the part of owners for acts of other owners or the LLC itself. This is one of the appeals of forming one. Business debts cannot be settled by creditors when they pursue personal assets like the savings accounts or houses of members. In contrast, general partners or sole proprietors can be pursued regarding the debts of the business. However, it should be noted that an LLC (and corporation) can lose its limited liability.

Flexible Membership

Owners/members can come in many forms, not just individuals. There are corporations, trusts, and partnerships as well. The number of members that can be part of an LLC is limitless. The restrictions on S corporations (essentially a corporation that chose to be taxed as a pass-through entity under the Internal Revenue Code’s Subchapter S) are much tighter in terms of who is considered a shareholder. There are only so many people or entities who can be a member.

Conclusion

An LLC, or limited liability company, is one of the most popular choices of smaller business owners. Membership is flexible, and there is no maximum for who can be part of it. There are several benefits to this, including management flexibility and tax advantages. 

Need help with accounting for startups? Contact FiBrick today! We are a people-centric accounting firm that offers a suite of services for startups and scale-ups.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

The Different Entities to Register Your Business Under

register a business
schedule consultation

The Different Entities to Register Your Business Under

register a business

Starting a business means endless decision-making. From the business’ name to the strategies you want to pursue to the platforms you want to tap, making choices does not stop. However, if there is one decision that is crucial to your business’s future, it is deciding the type of tax structure you want for your company.

Understanding the options can help you decide faster and more effectively. This article will show you four different types of business entities you can choose and how each can affect your taxes. 

Type 1: Sole Proprietorship

If you own and handle the business alone, then you could use this structure. The sole proprietorship is the simplest and most common structure that beginner entrepreneurs for which can opt. If you register with this business type, the Internal Revenue Service will view your identity and your business as one. That means your taxes and your business taxes are the same. Generally, however, you have no tax aspects in this type of business. 

Benefits: 

  • Your business income would also serve as your personal income, and it is subjected to your ordinary income tax rate, which can help you save.
  • If your business belongs to the category with taxable income below the minimum set, that could save you a 20 percent deduction off your qualified business income.

Type 2: Partnership

If you own a business with a partner or set of partners, your business can fall under the partnership category. More than one person contributes to all business aspects in this setup, including finances, skill, and labor. At the same time, all partners share the profits and losses of the business. 

If you apply to this type of business entity, every registered business owner within the partnership still needs to report its gains and losses on their individual tax returns. Taxation for this business identity might be more complicated than others, but it would not require you to pay the entity taxes.

Cashflow Video Guide

Learn the simple steps to prepare cash flow projections to improve your business cash flows.

Type 3: Limited Liability Company (LLC)

If you want to separate the business’s identity from its owners and still get taxed as a “pass-through entity” (which means your business is not subjected to the corporate income tax or any other entity-level tax), consider this structure. 

In this business structure, the owners enjoy the benefits of two different setups, making it a hybrid classification. It is a perfect mix of the advantages of the pass-through entity and sole proprietorships or partnerships. This structure also enjoys the corporation’s liability protection but with much fewer requirements and formalities. 

Type 4: Business Corporation

A business identity that is legally separate from its owners falls under the corporation category. It works as if the business is another legal person existing. This setup can be more complicated when it comes to tax filing as you need to file and pay for the corporation’s taxes and your personal taxes separately. 

Conclusion

Taxes play a significant factor in determining your business earnings and savings. If you want to know the right type of entity for your business, this article could help you learn about your choices, but the best way to know would be to consult your tax advisor. 

If you want to lessen your business’s taxes, you need to optimize your tax strategies. If you are a small business trying to navigate its finances, we, at Fibrick, can help you. Our solutions are tailored to fulfill your business’s fullest growth potential with robust accounting systems and processes.

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community

Posted on

Why You’ll Benefit from Hiring a Fractional CFO

schedule consultation

Why You’ll Benefit from Hiring a Fractional CFO

Running a start-up company is often challenging, and this goes beyond generating revenue from products and services. While it can get overwhelming to manage several employees and even various clients, many forget that they need to consider their cash planning and tax strategies each year. Getting lost in the financial side of things can make things much more challenging, where small business accounting comes into play.

Tech startups are exceptionally talented at the modern-day trends of technologies and innovating new devices and software. The modern start-up company is a force to be reckoned with, and it is expected to grow increasingly over the next coming years. However, it pays to know that bookkeeping and financial management are still going to be met with difficulties, as these aren’t skills taught just anywhere. These lapses are where a business accountant will help any start-up company get their feet off the ground.

Hiring a Business Accountant to Act as a CFO

A Chief Financial Officer (CFO) is an integral part of the business sphere, as they manage most finances and practically view the world through the numbers game. They are well-versed in tax strategies, bookkeeping, budgeting, and other financial matters. However, many start-up companies might not have the budget to have a full-time CFO available on deck to run the operations, where small business accounting firms can help.

In terms of outsourcing financial matters, you call these professionals fractional CFOs, who are experienced individuals that help with contractual finance work. They can assist with multiple needs, such as cash planning, bookkeeping, tax structuring, budgeting, and even drafting business plans. If your company is having difficulties raising capital, implementing newer accounting software and systems, or even running an audit, a fractional CFO can be a big help.

schedule a free consultation now!

It’s time to take your business to a whole new level!

What are the Benefits of Hiring a Fractional CFO?

While you’re not paying the full salary of a CFO and are paying for a package for their services list, you save more money and stress when it comes to running payroll. You basically get the full range of services and benefits you need from a full-time CFO with the selections you need for the times at hand. If you’re looking to optimize your cash flow for payroll or find the budgets for investing in research and development, these professionals can help.

CFOs are essential members of the entire management team, as all things in business boil down to money in the end. A company’s success depends on how profitable its products or services are and if they are making more money than spending. All kinds of lapses in judgment and blind spots are visible to a small business accountant when they run financial audits to optimize everything.

Fractional CFOs are also well-versed in dealing with various clients, which allows them to view your situation with a unique lens. Since they have no attachment or bias towards your company, they can make more educated recommendations than a CFO employed full-time. If you permit them to make suggestions, they will tell you what they believe needs to be done for better growth. Sometimes, businesses need to see the bigger picture, and only an external entity can show this most of the time.

Conclusion

It can be challenging to deal with financial decisions and running bookkeeping all while being a proprietor or a CEO all by yourself. Hiring a fractional CFO can help give your business the direction it needs to push forward with better growth and increased education on future trends. With a professional’s help, your business will be less likely to fall short.

In FiBrick, we would love to support your business’ financial success.  Let’s schedule a call to talk about your accounting, bookkeeping, and tax questions. 

Recent Posts

Follow Us

JOIN OUR COMMUNITY
for THE LATEST UPDATES

Join our newsletter to be the first to know about the latest news and resources.

FiBrick | Accounting, Tax Preparation and Integrated Financial Solutions
  • 1 (646) 242-3326
  • Info@Fibrick.com
  • 349 5th Avenue, Suite 816, New York, NY 10016

Company

Resources

join our community