5 11, 2021

The Multiple Benefits of Hiring A Virtual Assistant

2021-11-05T16:55:57+00:00

We have talked a lot about niching down to level up. This includes figuring out our strengths and weaknesses. When running your own business, you will undoubtedly wear multiple hats and take on tasks that do not fall into your zone of genius. What a lot of entrepreneurs have a hard time accepting is it is OK not to do everything. In fact, by letting go of some control, you can really focus on what you do best and leave the rest to others. 

A common thought business owners have is whether or not to hire a virtual assistant. You may weigh in the time you will have to carve out to the vetting process, training, and the hard cost. Is the juice worth the squeeze? Before you immediately hop on a job hiring site, let’s break down the benefits, vetting process, and costs. 

Benefits of hiring a virtual assistant

Friends hiking

1- Free up some time. You may be immediately thinking about the upfront time you will spend training this person however; once they are up and running, imagine how much time you will save doing tedious tasks a virtual assistant can easily do. Think about the last task you did that took a godly amount of time. What could you have been doing instead? Hiking, biking, skiing, spending time with family, working on growing your business? Yes please. For some more inspiration on getting time back in your day read our article: The Best Apps on the Planet for Productivity.

2- Flexibility. Unless you come up with a different arrangement with your VA, they typically bill by the hour and only bill when you need them allowing you to be flexible with how often you use your VA. A typical VA juggles a few different clients and can accommodate your hours on busy and slow weeks. Unlike a full time employee who expects to work a certain amount of hours and get paid a salary, a VA might work 2 hours for you this week and 20 next week depending on your workload. 

3- Cost saving. Hiring a VA is usually less expensive than hiring an employee, even a part time one. While they often perform a range of services such as running reports, data entry, and mundane everyday business tasks, they only charge an hourly rate for what they do. You also don’t have the added expenses of finding them office space, insurance, accommodating vacation days or purchasing specialized equipment. All these expenses add up, where a VA works from their own machine and uses their own apps. 

4- Stress less. As lifestyle first entrepreneurs, we believe this benefit is the most important. We choose to be business owners so we are in charge of our own destiny and as freeing as that is, it can also be immensely stressful. Anything we can do to take some of the stress out of our everyday lives is not only important for our mental health but is important for our business too. By focusing on our zone of genius, we can grow our company. Entering data into a spreadsheet will most likely not get us there, however analyzing that report that is run after data entry by your VA just might get us there.

How to find a good virtual assistant

There are thousands of excellent virtual assistants out there. Platforms such as Upwork, Fiverr, and oDesk to name a few have mechanisms in place to filter by job success, location, skills, price range, and reviews. They also have systems in place to make sure that the work gets done correctly and VAs are billing their hours honestly. Referrals from your network are also a great way to ensure you hire a reputable person. Post what you are looking for on sites such as LinkedIn, Facebook groups, or Slack communities. Pro tip: before hiring, make sure to thoroughly read reviews. This should give you a good clue on their quality of work and whether or not they will be a good fit. Look for keywords such as “good communication,” “quick turnaround,” and “attention to detail.”

What you should expect to pay a virtual assistant

Digital nomad

As with most contractors, hourly rates for virtual assistants can greatly range. Typically, their hourly rate is based on skill and experience. A virtual assistant who is a skilled graphic designer will most likely charge more than an everyday task virtual assistant. 

The location they are based in will also affect hourly rate. For example, a VA in the Philippines may charge as low as $10/hour where a VA in the US will likely start at around $20/hour. Keep in mind that many business owners have had just as good of an experience if not better with someone who charges $10/hour than someone who charges $50/hour. As long as you do your due diligence in vetting your VA, you should hire based on your specific needs, not necessarily location. Take into consideration speed, experience level, time zones, possible language barriers and their completed portfolio jobs. Upwork has posted a helpful reference on virtual assistants’ rates

Takeaway

Imagine how good it will feel to free up a portion of your list that is taking away time and energy from you. The good news is that there are many great assistants out there who are eager to take that off your hands. It’s time to stop trying to wear all the hats in your business. It’s not a good look for you or your bottom line. 

At Singletrack Accounting, we have learned to prioritize our time so we can be there 100% for our customers. We know small business and we are aware of the ups and downs that come with running a business. Not only do we offer full service accounting so our entrepreneurs don’t have to waste precious time crunching numbers but we offer business coaching as well. We have helped numerous entrepreneurs grow their business and we would love to help you. Reach out for a free consultation. 

 

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13 10, 2021

How Small Businesses Can Compete With Big Brands

2021-10-13T17:51:02+00:00

Recent news has been calling out big tech such as Facebook for it’s ethical choices in the face of a whistleblower who ousted the company for repeatedly choosing profit over people and buying out the “little guys” who try to compete with the conglomerate. While Facebook’s ethics have been a topic of controversy for some time, we can’t help but wonder how their size affects small businesses and what we can do to stand out.

How can small businesses compete with the big brands when they have large advertising budgets, brand recognition, and large teams? While this may seem like an uphill battle, learning some ways to stand out and niche down will put you in a position to capture some of the market even if it is a small slice of the pie. You can always expand the size of the pie later.

So how are you going to hold your own against a big brand name? Listen up! We have 7 effective ways.

Crush customer service.

A lot of customers crave a deeper, stronger, personal connection that smaller brands can offer. Emphasize your size when it comes to customer service. Talking to a customer service bot at a large company makes most people cringe. Create not just good customer service, but legendary customer service. 

Build a reputation.

Amazon isn’t out there sponsoring little league but you are! Build a good reputation around your community and truly connect with people. This could be showing up at local markets, sponsoring local events, volunteering around the community, and making strong connections with your current customers. 

Farmer's Market

Reviews are gold.

Gather reviews from clients and start building them up on various platforms such as Google, Facebook, Yelp, or whichever review site fits your business best. Not only will this boost your SEO (search engine optimization) but it will give you valuable feedback to implement. Since you are small, you will also be able to implement this feedback faster. It really helps to ask people to help with leaving a review.

Niche down, level up.

By being smaller than the big brands, you can focus on a narrower audience demographic. You may find you don’t want to please every demographic and you can reach specific markets more efficiently. Take a look at feedback, customer trends, and your ideal customer to find your target audience.

Run a customer loyalty program.

Reward your customers for repeat business by offering incentives for them to come back. Applications such as Shopkick Local, Punchcard, and LevelUp make it really easy to swipe a customer’s credit card and keep track of rewards. There’s nothing better for a consumer than walking into their local coffee shop and getting a free drink every once in a while. 

Don’t compare yourself.

Nothing will break your spirit like putting your small business next to a big one. While you can always study and learn from the big guys, you are your own brand. Keep your marketing efforts focused on your specific brand, not your large competitor. Consumers will do their own research and as long as you have done your best to stand out they will ultimately make the final decision. 

Friends on the lake

Stand out, don’t fit in.

Finally, accepting that consumers, even local ones, will not always choose you is part of the process. By leveraging your unique, friendly, small business vibes, nailing down your niche market, and always learning and implementing improvements, you will be able to capture a portion of the market. 

At Singletrack Accounting we know small business. Our team of experts have been helping small businesses thrive for many years. We are here for our customers and we ourselves have learned to stand out from the crowd in a sea full of big fish. We offer full accounting services and coaching. Reach out for a free consultation. 

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13 09, 2021

Disaster Prep Your Business

2021-09-13T17:08:31+00:00

Fires, floods, hurricanes, earthquakes, and extreme weather are threats we are experiencing more regularly due to climate change. This is getting close to home. We have been watching the Caldor fire ravage through California and move in close to many of our customers and a local Singletrack CPA. We know that proper planning for our businesses in case of disasters can be extremely beneficial, but why have so few people taken the time to plan it out and write it down. It could take days, weeks, months or even years depending on circumstances to get back to normal. With the news outlets lighting up with one natural disaster after another, you may be wondering how you can best prepare your business physically and financially for unforeseeable events. Especially if you’re located in an area prone to natural disaster such as coastal areas, listen up. Even if you’re not located in those areas, this information can be valuable to any business owner as disaster can strike anywhere. 

Have a Plan

Bushfire

When your business is threatened by a disaster event such as a hurricane or wildfire, the time has already passed when you should have been planning. No business owner expects the worst to happen, but those doomsday planners may be onto something. Start Today! The plan should include such things as how will your business operate if the physical location is threatened, who will be in charge to delegate tasks, who will communicate with employees on a game plan, basic safety protocols such as where and how to evacuate the building, and having an emergency kit available.

Insurance

With these types of disaster scenarios happening more frequently, it should come as a no brainer to have insurance. Even if you have a policy in place, it’s a good idea to go over the plan with your current insurance company and make sure you’re covered as much as possible if a claim were to arise. If you’re in a high risk area such as California, you may find you need to up your coverage. A large bill caused by a natural disaster can be detrimental to a small business. Insurance will lessen the financial burden and can also cover income lost during such an event. Get insured!

Communicate with Clients

Letting clients know you will not be completing their work on time may be last on your mind as you’re navigating challenges. Having a system in place even if that’s an emergency autoresponder email will save you more work down the road. Rather than having clients emailing or calling you to ask when their project will be done, having a message in place ahead of time will inform them and save you headaches. You may even have a backup person or company that you outsource that can help them in case of an emergency. Have that established before you end up in that scenario. 

Protect Your Greatest Assets – Your Employees

Ski store employee

Keeping yourself and your employees safe should be your top priority. Create an emergency plan in case a disaster comes on suddenly. Examples include evacuation routes, check in points, and a system to account for all employees. Having a form of communication such as text alerts to keep them informed and warned not to come to work if there are hazards. Once you have a plan in place, take a trip down memory lane to elementary school and perform disaster drills so your employees are fully prepared. And remember, prepare for worst case scenarios. 

Life Comes First

You can be as prepared as possible for these unforeseen circumstances but our last piece of advice and most important is that life comes first. Preserving human life should be at the forefront of business’s emergency plans. Even after you have ensured that everyone is safe, the plan should focus on how to keep your employees comfortable. Since natural disasters can handicap businesses for the foreseeable future, having systems in place can make certain that your employees will not only have physical safety but job security as well so they can get back on their feet. People are irreplaceable. Make sure you put people first when creating disaster plans. 

Starting a business is hard as it is. Add in a natural disaster and you have yourself a stressful situation. By having plans in place and safeguarding your business, it will make it a little less stressful. Knowing that your business and employees are well protected will ease your mind so you can focus on your own safety and navigate more smoothly to the changes ahead. 

At Singletrack Accounting, we know that with some preparation, you will be able to handle anything that life throws your way. We know small businesses and we are here to help you. Our business coaches can either help you create or go over your disaster plan with you. Reach out for a free consultation. 

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2 07, 2021

Celebrate the Wins!

2021-07-02T22:51:44+00:00

We constantly talk about how businesses and entrepreneurs can be better. This includes how to run your business better, how to run your accounting better, how to have more motivation, and more. We rarely take a moment to stop and congratulate ourselves on all the accomplishments we have achieved. We are alive and we are reading this right now. To live a fulfilling and accomplished life, we must stop and take a moment to celebrate our wins. In this post, we take a break from giving you entrepreneurial advice and give you ways to truly celebrate your successes big and small. And remember, the biggest success is that you are alive right now. Let’s take a moment to learn tangible ways you can celebrate.

Focus on YOU

Girl and dog hiking

When was the last time you truly treated yourself? It’s time to pat yourself on the back for surviving the last year still intact. You spend so much time on your business and your team that it can be hard to take a step back, see the whole picture, and do something for yourself. Practice some self-love. This can come in all forms such as taking a walk without distraction, getting a massage or treating yourself to a vacation. Without your mental health, it’s hard to be successful in other areas of your life. You can’t recharge a dead battery. Take care of yourself and stay ahead of potential burnout.

Get Outside

Paddleboarding

Nature is healing. By spending as little as 20 minutes outdoors can greatly improve your mood. Go for a hike, a bike ride, get on the river, or simply lay in the grass and practice deep breathing. Sometimes your best ideas come at the moments you least expect them to. Whatever your favorite connection to nature is, soak it in. Not only will it improve your mood but it will also help you feel energized in other areas of your life such as running your business.

Get Out on the Town

Friends by the pool

Step out into the world and have a night out. Support local businesses by going out to dinner, see a concert, or accept that barbeque invitation you have not been able to do the last year. Invite a few friends! Being social greatly improves your health and longevity and is an integral part of living a happy and fulfilled life. Celebrate your successes while you’re out! Make a toast to your wins or to simply being alive. Laughter is contagious.

Push Your Comfort Zone

Hiking a Colorado Fourteener

Photo Credit: Outthere Colorado

Do something that scares you. When you stick in your comfort zone, your brain does not want to change. By stepping out, you create good stress that ramps up your creativity, focus, and enthusiasm. It may seem counterintuitive that we are trying to increase stress in a self-love article, but by doing this your body will create cortisol which has an energizing, and then calming effect. This is perfect for when you do return to full focus in the office! Some examples can be as extreme as skydiving, as challenging as learning how to surf, or as scary as finally taking that aerial yoga class you have been considering. Whatever it is, make sure you’re uncomfortable. You’ll prove to your mind that you can achieve things you thought may be impossible.

Takeways

By celebrating these wins, it will help you achieve your goals. As humans, we tend to see the problems and punish ourselves for them which over time can result in a negative mindset and put us farther away from our goals. Flip the switch friends! By celebrating your successes even if that means we are here to live another day, that’s where the magic happens.

At Singletrack Accounting, remind ourselves to celebrate our wins. Our favorite ways to celebrate are to get on the river, go camping, take a bike ride, or simply get outside into nature. We know small businesses and we also know the pressure of running small businesses. We are here to help with your accounting and small business coaching. Reach out for a free consultation.

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7 06, 2021

The Startup End Game

2021-06-07T20:57:31+00:00

The hardest part about starting a business is starting. We have talked a lot about how to make the leap into entrepreneurship but we rarely talk about the end game. If you haven’t also planned your end game, you may be building a trap from which you find difficult to escape. The reality is, you must not only plan your startup strategy but also your exit strategy.

Whether you plan on selling your business or not, it is important to plan your exit with your personal goals in mind. In this article, we will go over why it’s crucial to have a plan as well as the flexibility to change the plan, and the multiple ways you can say adios to your business and make a graceful exit.

Figure Out Your Goals

Let’s first be clear about your goals and what kind of business you are trying to build. Is this going to be a lifestyle business? Will you want to pass it down to your children? Is this a small side hustle that you will run alongside your day job? Or is this going to be something of value that you would like to sell to a new owner one day? Being clear on your goals will help guide you in the decision making process.

Team Makes the Dream

Whitewater rafting

By understanding what kind of business you want to build and your exit strategy, you will be able to form the right team around you that meets the needs and goals of your business. You may want to surround yourself with employees who share the same long term vision. For example, if your ultimate goal is to sell your business, your future buyer might be one of your current employees… that just may determine the conversation and direction you have today in planning for tomorrow.

Who’s Going to Replace You?

You may have anxiety about who is going to run your company when you decide to transition. Having a plan will relieve some of the stress and potential pitfalls that may come when dealing with customers and your employee team both now and in the future during a sale.

Be thinking now. Do not make yourself irreplaceable. Ensure you delegate as much as you possibly can. If you can’t delegate a task, train someone.

Don’t make your company your name. It’s very hard for someone other than Kim to own and operate “Kim’s Accounting Business”. Make it something easily transferable.

Make sure you are not the only point of contact for your customers. Get managers in place that can have those conversations for you. Get yourself out of the “operation”….ultimately as an owner you want to work on your business, not in your business. Everything you do during the startup phase should be pointing you in this direction.

Even if you are a “one-person-show” owner/operator, there are things that you can do to position your business for a sale. Build strong, tight workflows that are easily taught to a new owner. Document everything; how the work is managed, who you serve, absolutely everything should have a system in place that you can explain to another individual.

Be Flexible

Entrepreneur planning

Just because you set a goal of building a lifestyle business and moving steady eddy doesn’t mean you should not take the opportunity someone wants to buy your company. You should be ready! You may have had a vision of building up your lifestyle company slowly only to realize you are solving a bigger problem than you anticipate and are growing rapidly. The opposite may be true if you are planning on building a large, rapidly growing business and you experience slow growth. Being flexible and rolling with the punches is all part of the startup game.

Takeaway

The act of creating this plan should include the experts that know how to do such things: a business coach, an accountant, a business broker, and perhaps an attorney to guide you through the entire process both during startup and when approaching your exit. By putting together all these strategies in a robust plan for the duration of your business, you will be better prepared when it comes time to move on to your next venture. Having a plan will give you peace of mind when the day to day stresses creep up on you.

At Singletrack Accounting, we are with you every step of the way throughout your business lifecycle. It’s sometimes hard to plan for the long run when you are day to day building the start of a business, however having your paperwork and books in order will make the endgame a smooth transition regardless of the way you plan to exit. We offer full service accounting and business consulting. No entrepreneur should go at it alone and we are here to help you with expert advice while you plan the future. Reach out for a free consultation.

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13 05, 2021

How Biden’s Proposed Tax Bill Will Affect Small Businesses

2021-05-13T14:32:26+00:00

The new presidential administration has proposed a large new tax bill to offset other priorities such as improving infrastructure, funding the American Rescue Plan, combating employment inequality and tackling climate change. These are expected to be financed with increased taxes targeted at high income brackets and corporations. According to the Tax Policy Center, the tax hikes would generate $2.4 trillion dollars between 2021 and 2030.

We have been getting questions lately on how the new tax bill will affect small businesses. The main points the new tax bill proposes should not affect most small businesses and Biden has made it clear that he will only tax “the rich.” But what does that actually mean for small businesses owners?

Corporate Tax Rate

The proposed corporate tax rate would see an increase from 21% to 28%. This is still less than under other presidents such as Clinton, Bush, and Obama where the corporate tax rate was 35%. This is good news for the small businesses that have been hit the hardest in 2020 since they will most likely be exempt. The last thing the administration wants to do is put these businesses through more hardship. Big giants such as Amazon and WalMart who have significantly profited from the pandemic will see this tax increase, while the mom and pop ski shop most likely will not.

You may be wondering how you know if your business is in line with the tax increase since there is not a clear definition of what constitutes a “small business”. While this is not yet determined, it will most likely be that the administration sets a threshold of greater than 2.5 million dollars in annual profit or over $400,000 in individual income. Only about 10% of businesses would fall into this category while the rest of the 90% of businesses will see no change to their corporate tax rate. It’s targeting Wall Street not Main Street.

If you are a pass through business owner (s-corp, LLC, partnerships, and sole proprietors) which is the category most of our clients fall under, the tax bill would phase out the qualified business income deductions if you make over that 2.5 million dollar profit or over $400,000 in individual income. Let’s break this down into two scenarios.

Examples

Joe owns a small business named “Joe’s Ski Shop.” His annual profit is $400,000. He pays $100,000 to his employees and he pays $100,000 (subject to typical payroll taxes) to himself as a salaried employee. This leaves $200,000 as business profit left over to be taxed at ~20%. Therefore; his tax bill in April would be roughly $40,000 ($200,000 x .20). Since his personal income is under $400,000, nothing would change for Joe.

Mary owns a large advertising firm. Her annual profit is $2,000,000. She pays $1,000,000 to her employees and she pays herself $500,000 leaving an additional $500,000 exposed. Under Trump’s tax plan, that $500,000 of exposed income would be taxed as qualified business income (pass through income) at around ~29%. With Biden’s new tax plan, since her income is so high, she would not be able to have the pass through deduction and would be taxed in the highest proposed income bracket which is 39.6%. Therefore; her tax bill in April would be $198,000 ($500,000 x .396) under Biden’s policy, a $50,000 increase.

In order to avoid large corporations from manipulating the system and paying no corporate taxes, Biden has proposed a 15% minimum corporate tax. It may come as a breath of fresh air to stop hearing stories about large corporations paying no federal income tax and in some cases even receiving a refund.

Bonus:

In order to increase production in the United States, there is a proposed 10% “Made in America” tax cut for companies who produce products in the US and hire US employees instead of farming out work overseas.

Tips

In order to successfully navigate any changes, here are a few tips for small business owners:

1- Wait until the tax plan gets signed. Right now, the Biden administration has been focused on COVID relief and like all of America has not paid much attention to taxes yet… We cannot predict the future and until we get a concrete plan, there’s no sense in stressing. It’s just a proposal right now and will have a long road ahead to become policy.

2- Stay informed and collaborate on the best way to handle any changes that could be coming your way. Does it make sense to put more into retirement? Should you switch to growth mode and hire more people instead of putting profit in savings?

3- Schedule a meeting with a consultant. Our team of experts can help you navigate the dynamic and rapidly changing tax policy to get you set on the best strategies moving forward. No small business is the same and having a professional on your side could save you thousands.

Takeaway

Unless you fall into the top 1%, the new President has said that he will not raise taxes on small business. If you’re a startup or small business not making a huge profit, there is no reason to lose sleep over the proposed tax plan. You would be better off brainstorming about how to position your business to capture the economic lift created from all the new infrastructure projects that will happen in your area. Construction workers spend those paychecks on Main Street.

However; nothing is set in stone and our team is diligently monitoring the situation to see if anything changes. If you are wondering how the new proposed tax plan will affect your small business, reach out to our team of experts and schedule a free consultation.

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12 04, 2021

Q&A With A Founder

2021-04-12T22:13:44+00:00

At Singletrack Accounting, we love hearing from happy small business owners that our team has saved time, headaches, and the stress of the dreaded tax filing season. In addition, as entrepreneurs ourselves, we enjoy connecting with our customers and learning their struggles as well as what makes them tick. We sat down with one of our customers, Alley Rubadeau, from Chair 9 Marketing and did a Q&A with Kim Hornsby, Singletrack’s founder.

Kim: What inspired you to go off on your own and start your own business?

Alley: Freedom. I dreaded the idea of living somewhere that did not fit my lifestyle and I feared not being able to spend my time the way I wanted to. I’ve always had somewhat of an issue of sitting in a cubicle and being “just a number.” Becoming the boss of myself seemed logical. Yes, I technically have multiple “bosses” since I work for clients but I can choose which projects excite me and craft a schedule that fits my lifestyle. I schedule meetings around the things I enjoy doing such as taking a hike in the middle of the day or taking off a Friday to head to the mountains. This may mean I sometimes work longer nights or weekends but the freedom of being the boss of my schedule was my main motivator. Once I started running towards entrepreneurship life 6 years ago, I never looked back.

Kim: When you first started your business, was accounting on your mind?

Alley: Not exactly. When I first took the leap to go off on my own, I knew I had to manage my books and stay compliant but I was naive to the time commitment and the complexity of accounting. Yes, I was concerned with how much revenue was coming in but I wasn’t concerned with the specifics such as what type of business to form, how to categorize my expenses, and how to correctly run payroll. I was determined to do everything myself and I was in the dark on how much my expenses were compared to my revenue. I was only looking at the number at the end of the month of how much profit I retained in my bank account.

Kim: What was the turning point in your business where you thought “Hey, maybe it’s a good idea to hire an accountant?”

Alley: In 2016, I specifically remember being on vacation in New York City, having to sit out of sightseeing for the day to file taxes. I was sulking in my AirBnb pressing submit before midnight on April 15th. While this was poor planning on my part, I didn’t anticipate the complexity of filing business returns. The next year, the week before taxes were due, it was like a big cloud hanging over my head. I would then take that day at the very last minute and go through all my bookkeeping. Full transparency – it was a big, giant mess! I did my business taxes myself for 2 years and each year, I swore I would hire an accountant the next year. The time, uncertainty, and stress it added to me was unnecessary.

It’s common for entrepreneurs to think they can do everything themselves and the moment I realized that was not the case, my life changed. The same year I took the leap to hire an accountant, it motivated me to ask for help from other experts to take on aspects of my business that I am not an expert in such as hiring my first social media manager.

Kim: What scared you the most about hiring others?

Alley: Control and cost. Besides wanting to be in control, the cost scared me. Running a contract marketing company, my business income in the first few years of business looked like a rollercoaster. Some months, I was booking trips to Hawaii and other months I was trying to go 5 days without spending any money. Being a contractor can be unpredictable and I was worried that outsourcing work would be financial suicide. Boy was I wrong! In fact, after I was able to admit that I could not do everything myself, all of a sudden I was excelling at everything else that was being put on the backburner. I was able to focus on my strengths in my business such as project management, I had more time to acquire business instead of doing all the work, and the best of all, I gained more time for myself and my family. Also, I no longer loath the month of April. And did I mention, I saved thousands of dollars on my tax bill?

Kim: Bringing time back to our customers is one of our biggest goals. Speaking of having more time, how much time do you think you have saved by hiring our team?

Alley: Endless hours. While I can’t give a specific amount of time, to me it’s more about redirecting that time into something I enjoy. I value looking at my bookkeeping numbers at the end of the month but the road to get there is not one I have the time, motivation or expertise to take. I remember the first time I filed my personal taxes in 2018 after hiring Singletrack and I was ecstatic about how little time it took because my business taxes were done. I also had the peace of mind that they were done right which to me is invaluable.

Kim: What advice do you have for other small business owners when it comes to outsourcing accounting?

Alley: Don’t wait to start. If I had started even a year earlier, I would have saved thousands of dollars in taxes. I thought by doing it myself, I would be saving money. That was not the case at all. In fact, not only was I paying unnecessary money to the tax man but I was losing precious time I could have been doing things I love. Before Singletrack, I felt this sense of anxiety around tax time. Even after I filed, I never knew if I had done it quite right. I think as entrepreneurs we can all relate to this feeling when it comes to making business decisions. It took me multiple years to realize that I cannot wear all the hats and I don’t want to wear all the hats. By letting go of some control, I not only hired an amazing team but I’m more successful and organized because of it. They say that your productivity goes down 50% if you have a cluttered, disorganized desk. I would say the same may hold true if you have messy books.

At Singletrack Accounting, we have countless customers with similar stories. Hearing stories like Alley’s is why we love what we do. We understand that no one can go at it alone and asking for help is not only smart but can be invaluable for your business. Take the leap! Reach out today for a free consultation.

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3 03, 2021

Niche Down, Level Up

2021-03-03T14:55:25+00:00

Over the past several years we have learned as a company who our ideal customer and niche industries are. Our main objective is to work with people who our values align with. Our ideal customers are “mountain people.” This does not mean they need to live in the mountains to fall into this category. We prefer to work with customers who are positive, enjoy and respect the outdoors, and understand that no one can go at it alone. We like to call them lifestyle entrepreneurs. Just like our team they are hard workers yet know when it’s time to take a break and enjoy life. They are also simply kind and good humans. Based on the type of clients we want to work with combined with our personal expertise, we have also narrowed down our niche industries.

Coaches and Consultants 

Surf coach

We have numerous coaches and consultants as customers and we know the highs and lows of helping others. It can be emotionally draining and at the same time an emotional high helping people succeed. We also know how important financial success and stability is to your business. Income can fluctuate greatly and your books can be tricky since coaches and consultants typically do a range of work from Ted Talks to surf lessons. Maintaining cash flow, keeping track of expenses, and having full financial transparency is especially important with this type of business and we are with you every turn of the way. 

Learn more: https://singletrackaccounting.com/consultants/

Web and Graphic Designers

Creative types such as web and graphic designers are talented individuals that are excellent at what they do but most likely do not have the time, energy, or expertise in accounting. We love helping designers because of your growth potential and flexible lifestyle which typically allows you to have the “work hard, play harder” attitude. We want you to be as creative as possible and we help put your “boring” accounting on autopilot. We are also well aware that these businesses face ups and downs in income based on what contracts you choose to take on. We work with you to make sure you have enough cash flow for every month despite the rollercoaster of busy and slow months. 

Learn more: https://singletrackaccounting.com/web-design/

Doctors, Dentists, and Chiropractors


You are an expert in your trade and we applaud you for your success. If you own your own practice, chances are you are far too busy to do your books. You are helping clients, managing your personal life, and building wealth. However; you can quickly end up with a large tax bill if your accounting is not managed properly. Did we mention the tax man also loves your industry? Our team will make sure your books are audit ready and our tax planning service will make sure you are not overpaying taxes and you have a good cash flow strategy for years to come. 

Learn more: https://singletrackaccounting.com/doctors/

Attorneys 

Lawyer talking on Zoom

Like the above industries, the tax man also loves attorneys. You are hopefully making lots of money which can quickly add up in taxes. Choosing how to structure and manage your business is immensely important. You didn’t spend multiple years in law school to do your own accounting. Our attorney packages keep the books accurate and we structure your finances to keep the tax burden as low as possible so you can keep earning those dollars. 

Learn more: https://singletrackaccounting.com/attorneys/

Contractors and Freelancers

Remote freelancer working

You are a hustler! We applaud you on taking the leap to take your career in your own hands. You could be a tech freelancer, writer, independent contractor, part of the gig economy, and the list goes on. We know how dynamic your income can be and we are here to make your accounting a breeze. It can get complex with 1099s, K-1s, etc… We want to make sure we limit your tax burden as much as possible. When things get messy, having a professional team behind you will save you money and headaches. 

Learn more: https://singletrackaccounting.com/contractors/

Restaurants

Restaurant in Telluride, CO

We are old hands in the restaurant industry. Our managing CPA, Joe Soave, even owned his own restaurant. Having walked the walk, Joe is incredibly knowledgeable about restaurant accounting. He is also aware of the challenges restaurant owners face on keeping cash flow steady throughout the year to set you up for long term success. Similar to some of the above industries, restaurants can also be a good target for an audit. Our team of professionals will make sure your accounting is in tip top shape in the case the tax man comes knocking. Do us a favor and focus on delivering excellent food and service. We’ll take care of the books. 

Learn more: https://singletrackaccounting.com/restaurants/

By narrowing down this list, we have niched down and in return, leveled up. We have pinpointed our ideal customer and with that narrowed down the industries we work with. However; just because your industry was not mentioned does not mean we cannot work for you. Although we do not work with some companies such as nonprofits and retail, we work with numerous companies in all different industries all over the world. We know small businesses and our speciality is to keep your finances organized and save you a ton of money on taxes. What are you waiting for? Reach out to see if your business is a good fit. 

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6 01, 2021

A Fresh Start

2021-01-06T02:13:05+00:00

A new year means a fresh start. With 2020 in our rearview mirror, it’s time to reflect on all the things we have learned and to start fresh for planning for the future. Let’s be grateful for how we have grown as people and as business owners over the past year. There’s no doubt we have learned a whole lot and we are stronger for it. Now is the time to take what we have learned and create a fresh start. 

With all this madness ending on the horizon, our futures look bright. It’s time to hit the ground running. Innovation is at an all time high and the art of pivoting has never been more pronounced. The world has changed rapidly and has forced many companies to rethink how they do business as well as how we as business owners and entrepreneurs live our lives. Are you living your best life?

Important lessons we have learned is how important our health and our families are, the art of multitasking, and the agility to roll with the punches. It has also forced us to take a step back and evaluate our processes. Is our process working for our customers? Is it working for us? How is it affecting our loved ones? How do we create fresh starts and become a healthier and happier entrepreneur in 2021?

Prioritize Health

As entrepreneurs we have the opportunity to lead by example, not just by earning money but by prioritizing our health and wellbeing as well as the health of our employees. As driven individuals, some entrepreneurs tend to give up some quality of life to grow their business.  Living in the mountain town of Steamboat Springs, Colorado, our team is well aware of stepping outside for some fresh air as well as busting our asses in the office but there has to be balance. We try to lead by example by getting out of the office to hike, bike, run, ski, or take a quick jont in the woods. While we have always prioritized outdoor activity and our health, we will be more conscious of it going forward. 

Practice Good Karma

Bikers in Steamboat Springs

Photo credit: Yampa Valley Community Foundation

The world is full of great people that truly care about our community and give back and our hometown of Steamboat Springs is no exception. Our quaint, mountain town raised $1.1 million dollars on Yampa Valley Gives Day, beating out last year’s number even during a particular tough financial year. It’s a real town with real people that care about others. Giving back is one of the most gratifying things you can do. Practicing empathy is satisfying and reminds you of why you became an entrepreneur in the first place. 

Learn Something New

Most if not all business owners were forced to at least change something about the way they do business in the last year. It forced us to think outside of the box and truly understand our customers wants and needs during a rapidly changing year. One of the best ways to prepare yourself for a pivot is to challenge yourself to learn something new. Learning something new changes your brain activity to think outside of the box.. The greatest threat to your business is complacency. Doing the same thing over and over again the same way may have worked in the past but it is not guaranteed to work in the future. Some good examples of learning something new are, learning a new language, teaching yourself a new business skill set such as Google Analytics, or taking up a new sport. The process will positively translate into your business. 

Make a plan

Backcountry skiing

The best way to achieve goals and create a fresh start for yourself and your business is to make a tangible plan. Start by writing down the large goals and work your way backwards on the tangible steps to achieve those goals. You may have a goal to acquire 5 new customers in Q1. While this is a great, tangible goal, what detailed steps will you take to achieve it? What potential obstacles could you run into and how will you overcome them? The more detailed of a plan, the better chance you will have to carry it out. Like accounting, seeing the actual numbers helps us have full clarity of our progress. It’s hard to make a revenue goal without running the numbers of what it will take to get there such as expenses, costs of goods sold, and ultimately profit. 

The main thing to remember is that you are not in this alone. Not only does Singletrack Accounting provide excellent accounting and bookkeeping services but we are with you every step of the journey. When you succeed, we succeed. We also offer small business consulting services. Getting a fresh perspective is a crucial part of setting fresh goals. Reach out for a free consultation to our team of experts. 

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2 12, 2020

What 2020 Has Taught Us About Business Resiliency

2020-12-02T15:51:28+00:00

For the majority of small businesses, this year has been a tough one. We like to compare it to frozen, skied out moguls. When we look back to February when all this began, business was popping like a bottle of champagne after an amazing powder day on the mountain. The economy was on track to have a spectacular year. Flights were packed, restaurant reservations were hard to come by, retail was having an outstanding quarter, ski resorts were thriving, and so on. Some place warm, a place where the beer flows like wine, where beautiful women instinctively flock like the salmon of Capistrano. I’m talking about a little time called the beginning of 2020. And then, almost overnight everything changed. 

Was your business prepared? With all this madness ending on the horizon, we are going to highlight some lessons we have learned this year and how to better prepare your business for a downturn in the hopefully not so near future. 

Small business

The first and arguably most important lesson is business agility. Was your business able to pivot from its normal operations quickly and efficiently? Were you able to be agile enough to not resist change and come up with an altered, perhaps new business model? Business owners had to humanize their companies by really knowing their customers wants and needs, and changing processes and procedures to meet those needs. Part of adapting quickly has to do with mindset. You must be mentally prepared to switch gears in a timely manner. 2020 has tested us and revealed our strengths and weaknesses. Were you able to make the best choices with the information you had?

Dining gondolas

Photo Credit: IG/@michaelmowery

This brings us to the next topic of creativity. I bet you have had to come up with creative ways to either thrive or hold on for dear life this year. The pandemic has forced businesses to get out of their comfort zone and come up with new creative ways to reach customers. This may have been finding new channels to target, creating new products to fit customer’s needs (for example: lots of companies started making face masks), modifying how customers use or consume products, and finding new market opportunities. By getting out of your comfort zone, you may have unlocked new, exciting transformations you never would have known existed if it weren’t for 2020.

Getting out of your comfort zone also meant getting familiar with technology. Tech has been the backbone of having a successful business in 2020. Many entrepreneurs have become pros at digital platforms such as Zoom and wizards in document sharing cloud platforms such as Dropbox these last few months. The biggest takeaway here is, be comfortable with using technology before you even need it. Zoom made its debut almost a decade ago but most business owners had never used it before 2020. Were you ready to jump on board with new tech services?

Many businesses were not financially ready for a pandemic. Every day we are seeing multiple businesses, big and small go out of business. A lot of businesses did not have the cash buffer they needed to withstand the downturn. This brings us to the importance of having an emergency fund. While we know having excess cash is not possible for all businesses, those that had backups were more likely to stay afloat. We cannot stress enough the importance of having a good accountant and bookkeeper to deliver financial reports for you to have a grasp on your cash flow. If you still don’t have full transparency on your finances, reach out to Singletrack Accounting

Think about things differently

Now that we have gone over the learning lessons of 2020, we can look back on this wild year and know that we have acquired some valuable lessons. To summarize, 1) Be agile. 2) Be creative. 3) Technology is your friend. 4) Don’t get over your skis with your finances. We have learned a lot and will come out much stronger in the years ahead. 

At Singletrack Accounting, we are here to help you. We want nothing more than your small business to succeed. Our done-for-you program not only provides audit-ready books & tax filing but also a Team of Small Business partners who understand what you are going through and are with you every step of the way. Please reach out. You do not have to go it alone.

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11 11, 2020

End of the Year Accounting Prep

2020-11-11T15:53:58+00:00

We are nearing the end of the year (can you believe it?) and 2020 has tested us. Let’s not make it any harder on ourselves by procrastinating our accounting. Even the most organized business owner can sometimes feel the crunch when approaching tax deadlines. We are here to make your life a little easier in the upcoming months. No one likes to cut a powder day short because they have a few hours left to file their 1099s. What day is that again…? In this article, we’ll go over how to organize your accounting right now, to make your 2020 accounting go smoother. Let’s face it – anything to make 2020 easier is a win. 

Payroll

One of the most common mistakes that we see every Christmas are bonus checks to employees that aren’t run through payroll. When you pay employees ANY type of compensation, it absolutely must go through the normal payroll & tax process. ALL payments to employees must be run through your payroll app. 

If you use a service such as Gusto, or work with an Accountant, W-2s will be made available in January. Do not attempt doing payroll by hand, it’s not worth it. 80% of small businesses not using software end up with at least one IRS penalty each year. Penalties run over $400!

Woman hiking in Steamboat Springs

1099s

Things are a bit different this year. If you paid an unincorporated service vendor (or received money as an unincorporated service vendor) over $600 in 2020, you will be issuing (or will receive) a form 109-NEC,  which is new for this year. The 1099-NEC (non employee compensation) is a spin off from the old 1099-MISC. (Basically they took box 7 off the 1099-MISC and created a whole new form called the 1099-NEC). Landlords and Attorneys will still have their rent and legal fees/proceeds reported on the old 1099-MISC, but everyone else will have their non-employee payments reported on the new form. The January deadline to file these comes quickly after the holiday. Start collecting your service vendors information now by requesting w-9s before it’s too late. The worst thing you can do is wait until a few days before the deadline to ask for your vendors’ W-9 info and find out they’re on vacation in Mexico. That’s not on them, it’s on you.

Bookkeeping Reviews & Year End Tips

If you are wise enough to have an amazing bookkeeper, receiving end of the year reports will be a breeze. Make sure to collect each report by month or quarter to make them easier to review (and file them in a safe spot for future reference). Go over the reports to ensure all your income and expenses are accounted for. That random business lunch you put on your personal credit card a while back can be counted as a business expense. As long as you have the proof, you can turn that into another tax deduction.  Organization adds up! Keep receipts, make sure to let your accountant know if anything changes, and thoroughly look over your reports. Did I mention receipts already? A paper trail is important. Keep your receipts in a safe and accessible place in case the taxman comes knocking for an audit. 

Paddleboarding

Tidy Up

If you’re still with us, this one is important. While we are on the subject of keeping a good paper trail, the end of the year is a good time to do a business audit. Take a look at how your year has been going. What unneeded expenses can you cut? Have you used all your subscriptions? Do you still need premium plans for apps you use? Is your payroll in order? This will help you create financial goals for the upcoming quarter to set you up for success. Bonus tip: Similar to creating a New Year’s resolution for yourself, create one for your business as well.  

The best way to handle your accounting is to hire an accounting expert to advise you along the way. You need an accountant to review your end of year financials and any tax and audit preparation that you are required to complete. The end of the year headache should drastically decrease with an expert by your side. It is still your business and you will have important tasks to do, next year to plan, and the added stress of entering a new year but why make it harder on yourself? 

At Singletrack Accounting, we are with you every step of the way. We also will go over all your reports alongside you to make sure you are utilizing every resource. Our number one goal is to help you be successful while staying compliant. Reach out today for a free consultation. 

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6 10, 2020

Save Thousands on Taxes With an S-Corp Election

2020-10-06T16:56:04+00:00

Give yourself a pat on the back. Owning and operating a small business is no small feat. What if we told you you could be leaving hard earned money on the table and there was something you could easily do about it? 

An alarming amount of business owners are not taking advantage of a major federal tax saving filing status, s-corporation. I know you’re thinking – what’s the catch? In this article, we will go over the numerous benefits and some caveats of changing your filing status. If you are making over $20,000 in annual profit a year, listen up. You are probably overpaying your taxes. 

Let’s dive into how an s-corporation (s-corp for short) works. The key feature that makes an s-corp different is the tax advantages it offers. S-corps are a tax structure or a tax filing status, that allows pass-through taxation for small businesses and exempts their dividends from self-employment tax. We’ll unpack this for you.

An s-corp is not an entity – that is your LLC or your corporation. An s-corp is a tax filing status with the IRS. 

Understanding the difference between a business entity and a tax filing status. 

Before moving on, it’s important that you understand the difference. You set up your business entity by registering it with the secretary of state. You can then choose which tax filing status you want. Your entity could be an LLC, while your filing status could be an s-corp. Therefore in this example; you would have an LLC taxed as an s-corp. 

What’s the benefit?

S-corp status exempts business owners from getting taxed on their profits from self-employment tax…thats the elimination of 15.3% tax on your business profits! 

But how? 

Rather than paying 15.3% self employment tax on S-Corp profits, business owners pay themselves a “reasonable salary” by issuing themselves a W-2. Yes, you will need to pay social security & medicare taxes on your W-2 income, but by running some of your profits through Owner payroll, the entire remainder of your net income is saved from paying ANY self employment tax. Even better, the business can write off your salary and it’s portion of your payroll taxes. Say goodbye to 15.3% self-employment tax on your profit! If you file your taxes as a single member LLC you WILL pay 15.3% self employment tax on your entire profit…that is one of the highest tax rates paid by any American.

Confused? We prefer visuals. Take a look at the example graphic below. For simplicity, this person is single with no other income. We compare the different business structures and how much taxes this business owner will pay based on filing status.  

S-corp tax savings example

If you’re still with us, you can see that this business saved between $5000-$13000 in taxes for electing to become an s-corp. That is a BIG difference. Think of all the things you could do with that extra cash. Put it back into the business, save it for a rainy day, take a trip to Europe (Yolo!). 

But seriously, what’s the catch?

Fly fishing

Like all great things, this one is going to take a little effort and a proficient accountant. Changing the tax filing status of your company is complex and requires a professional. However; once the leg work is done, the tax savings and simplicity is worth every penny. Keep in mind, you must agree to meet accounting and tax related compliance tasks. 

This is our specialty at Singletrack Accounting. We offer affordable accounting for small businesses to take advantage of these tax savings. The amount you will save, even after the costs of accounting services is typically thousands of dollars. We make sure all the accounting compliance requirements are done with low cost done-for-you packages. 

There are a few steps to conversion.

Steps to s-corp conversion 

1- Ensure eligibility

2- Financial & Service Ramifications

3- Create a Business Entity

4- Apply for an EIN and file Form 2553 with the IRS

5- Changes to Bookkeeping

6- Changes to Tax Filing

Top compliance requirements

1- Owner W-2

2- Separate personal and business bank accounts

3- Separate corporate tax returns

4- Updated operating agreement

This may sound like a lot, but not to worry. We work with you every step of the way. 

Late to the party?

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You may be wondering if it’s too late to take advantage of the tax savings in this fiscal year. Let’s talk about late s-corp elections. Many s-corps miss the deadline, but fortunately for you it’s not too late. Filing for an s-corp is tricky enough, filing for a late s-corp election is even trickier but still possible. At Singletrack Accounting, we do the heavy lifting ensuring we follow all compliance measures to get you on track to change your filing status and in return save you thousands. 

Takeaway

Running a small business is hard enough! Make it easier on yourself by taking advantage of this no brainer tax savings strategy. Professionals are here to make the process run smoothly. We take the heavy lifting off of you so you can do what you do best – run your business. 

Reach out today to our team of experts to set up a free consultation. We have saved business owners multiple thousands of dollars over the years. Our bread and butter is s-corp election for small businesses and we are ready to help you. 

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Save Thousands on Taxes With an S-Corp Election2020-10-06T16:56:04+00:00
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