If we collective a dime every time a client told us they don't know their numbers, we'd be rich!
But seriously, if you have followed the advice and hired an accountant to take over the finances of your business, now you can rest easy and focus on doing what you do best and never worry about that side of things again, right? While this statement feels great, there are still a few financial details about the business that every business owner should be aware of no matter who is managing the finances.
Keeping an eye on this number will help you have a constant finger on the pulse of your business. If the amount of cash flowing out starts to outpace the amount of cash flowing in, some adjustments need to be made and quickly to keep things running. Cash is the lifeblood of a business! Your business cannot stay afloat long with miles and miles of accounts receivable and promises to "pay later."
This number is closely tied to your cash flow and is basically what is left over after everything is paid. To ensure the health of your business you want to make sure that this number is always positive and better yet, steadily growing!
This is the number that is left after you subtract operating expenses from what you are charging. Whether you are a service or product-based business, you want to make sure that you are frequently looking at and adjusting your rates based on this number. Ideally, you want to find that sweet spot where you are charging enough to cover expenses, make a profit, and be competitive.
Profit and Loss
This is a snapshot of the financial status of your business at a given point in time. Knowing and being able to reflect back on this information will allow you to predict future performance and budget accordingly.
You do not have to be an accountant to have a grasp on the financial health of your business at any given point in time. Simply familiarizing and keeping up to date with these four numbers will give you a picture of where you stand and where you need to make adjustments.
Need help with your business plan and whether it's set up for success? Reach out to our office today for help.
If you have employees then you have had some dealings with the I-9 form. The I-9 form is a tool to help employers verify that new hires are eligible to work in the United States. It is a federal requirement that employers fill out and retain this form for all new hires. While this seems like a pretty straight forward process, there are some common questions that come up when completing this form.
Do I need to complete an I-9 for Independent Contractors?
No, it is the contracting companies responsibility to collect this information, however, if your contractor is an individual you need to make sure they meet the test to be classified as an independent contractor and are not actually an employee.
Can I choose which documents to accept for verification?
No, the employee can present any acceptable document from the appropriate list for verification. Insisting that an employee provide a specific document could be problematic.
What is my responsibility concerning the authenticity of the documents?
You should physically examine the documents and if they appear to reasonably be genuine and correct for the person presenting them, then you must accept them.
May I accept an expired document?
No, while there are certain documents that can be accepted after expiration with an official extension, the general rule is no.
Can I accept a photocopy?
No, all documents must be original.
These are just a few of the common questions involved with I-9 completion and compliance, it is a good idea to regularly train your HR team members on proper compliance and check for updates to make sure that you are appropriately following the rules. Reach out to our office with any questions or for help with hiring employees.
Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.