There are a lot of ways to increase your income and set yourself up for success.
One of them is to find ways to create multiple streams of income.
What that means is that you have different ways to bring in income that don’t depend on each other.
For example, you may provide a service, sell a product, host paid mastermind groups, create an inner circle, provide coaching and more.
There are many things you can do that will enable you to bring stability to your income so that you don’t have all your eggs in one basket.
You can earn money blogging by getting your name out there, becoming popular in your niche, and building up traffic to your blog. You can make money off ads, sponsored posts, affiliate products and more.
2. Email Marketing
Collect targeted audience information (from a form on your blog), and you can then market affiliate products, information products, training programs and more to them.
3. Information Marketing
Do you know things that have worked for you in some area of life within a particular niche? If so, you can create and sell information products, such as books and videos, which teach your audience something valuable.
4. Affiliate Marketing
This type of marketing works both ways. If you have information products or other types of products that you sell of your own, you can create a program that allows other people to promote the product and earn a small commission. Conversely, you can do the same by selling products for a commission on your website, blog, and in email marketing.
5. Training Programs
While information products are sometimes types of training products, you can go far more in depth with the training. You can create a drip course for email, or by using some form of learning management system on your website.
6. Continuity Programs
One of the best ways to earn money is to create a monthly recurring program that never ends. They pay by subscription. There are many types of examples of this, such as a paid inner circle or private group.
7. Coaching Programs
If you’re successful running a particular type of business, you can actually start coaching people on the side about how to do what you’ve done. This can be a lucrative extra stream of income.
8. Online Communities
A popular stream of revenue is online communities such as mastermind groups, inner circles, and private groups that you can only enter if you pay and are part of the right audience. Typically space is limited.
These are just a few of the ways you can create multiple streams of income online. There are also ways you can do it offline such as savings, investing, rental income, and more. This will keep you from being stuck trading hours for dollars, which inherently limits your income.
For some people, the idea of starting a business sounds like the worst idea in the world. They would rather work all the years of their life for someone else than even consider having a business of their own. For others, however, there is nothing more exciting than the thought of starting a business they can call their own.
Many people dream of starting a business from the time they are young. These people love the idea of being creative and of selling products or services they believe in. They love the idea of convincing others to love the same things they love and they usually like the idea of working with money. Starting a business of their own sounds like the ideal way to spend their life.
If you're one of these entrepreneurial people that dream of one day starting a business, you can begin the process by taking the time to ask yourself some important questions that will give you more understanding and direction of how to proceed.
First, if you're considering starting a business, try to brainstorm the kind of business that you would want to start. Do you dream of selling your services or of having coffee shop, or is the idea of selling sports equipment more your style?
You see, you can have a business for just about anything, so it is important to narrow your ideas into a couple of focused ideas for starting a business. It's usually true that starting a business will go better if your business is focused on something that you love. Without passion you will not get very far with your dreams. However, many people create businesses that become very successful in areas they no nothing about if they hire the right people.
You should be a combination of realistic and idealistic when you're making plans for starting a business. You have to have a real understanding of factors like money (have you hired a bookkeeper and CPA?), time, and resources for your business, but you'll never have the business you dream of if you wait until you have all of the details figured out. So allow yourself to get pretty detailed in your ideas for starting a business. Write out parts of starting a business that seem easy and possible and write out parts of starting a business that seem hard or like they could never happen.
Another important thing to do before you rush off in starting a business is to sit down with current business owners and learn everything they can teach you. Their years of trial and error will be invaluable to you as you seek to begin the process of starting a business yourself. Many have gone before you, so utilize their resources and be a learner.
Take steps of planning and preparation and your dream of starting a business can become a reality quicker than you'd expect.
Kaylin Leland, owner of The Bean Counters Bookkeeping is the author of Putting The Puzzle Together - A Modern Business Perspective, a must-read for every new entrepreneur.
Self-employed individuals always cringe at the amount of taxes the pay to the IRS and state. Here are tax strategies for self-employed individuals that reduce those tax amounts.
The good news is being self-employed is one of the best tax strategies out there. Unlike a salaried employee, the full scope of tax credits and deductions available in the tax code are now available to you. The key, of course, is understanding the available deductions and organizing your business in a manner that allows you to maximize the write-offs.
The number one tax strategy for self-employed individuals is to keep receipts for every business expense and write them off. Practically anything can be deducted, so do it. Acceptable expenses include cell phone usage, business mileage, office supplies, home office deductions including part of mortgage or rent and so on. If you've filed a tax return while self-employed, you are probably already aware of this so lets move on to more specific tax strategies for self-employed individuals.
Maximizing your non-capital losses can result in major tax savings. If your expenses exceed your income for a year, you obviously will not have to pay taxes for that year. What most people don't realize, however, is that such losses can be carried forward for seven years and deducted against future income. Alternatively, the same losses can be carried backward three years to recover past taxes paid. The end result of this situation is you can turn a bad business year into an income generator by applying the losses to taxes in other years which effectively wipes out your tax bill for those years.
Another tax strategy is to look at your side businesses. If you have one business, you'll often have a second one that is tailored to making some money off a personal interest. While you are in it mostly because you like it, you may not realize it qualifies as a business and can help you reduce your taxes. Let's assume you are primarily a self-employed consultant, but also write travel articles on the side. You may view the travel articles as a hobby, but it is in fact a business. If you've sold or even tried to sell any of your articles to a publication, all of your expenses related to travel writing can be deducted from your taxable income. This includes trips and so on. These, deductions can significantly reduce your taxable income from the consulting business. Make sure to get a grasp of your overall business efforts, even if you don't really consider them to be a business.
Consider employing your children to save on taxes. A child under 18 that works for you does not have to pay FICA and so on. If the total wages for the year are under a certain amount, they will pay no taxes and you can write off this amount as a legitimate business expense. Of course, the child needs to actually be doing a legitimate business task, but filing and similar manual tasks certainly will qualify.
Tax strategies for the self-employed are plentiful. If you are self-employed, consider getting professional help. The Bean Counters Bookkeeping team has saved our clients thousands upon thousands of dollars in taxes, more than making up for their fees, plus, you can also deduct our fees!
When you hear the word accountancy, it makes you wonder what accountancy really means. Many people come to a quick conclusion that accountancy is just a word or term to go with accounting. Many people do not realize, however, that accountancy is the life of any thriving business and is a necessity within any establishment. Once you understand what accountancy is, then you will realize how important of a role it plays in how we run and operate our business finances. We will go over some of the basic aspects of accountancy.
The core of accountancy is maintaining extremely accurate records of any and all aspects of a business and how it earns and spends money. You must maintain multiple types of records to account for every aspect of your business, which is why accountancy can become a very complicated process but is necessary. Different parts of these separate records are your accounts receivable and payable, your current inventory, all of your sales orders for your current tax period as well as an accurate database of your past sales records and your purchase orders. You must also maintain an accurate account of your bank statements and a backup record to cross-reference all of your records to make sure they are accurate and up to date. This is only one part of accountancy.
There is another aspect of accountancy which involves knowing what to list each transaction as. Now in accountancy, you need to be able to define what are your assets, knowing how to identify your liabilities, being able to show your expenses as well as you positive income. In order to do this properly, you must know how to define these different terms and what they do and do not apply to. This can make what some would view a simple task of maintaining proper records even more complicated.
These two parts of accountancy are extremely important, not only for tax purposes but also for banking reasons as well as audits that can arise form businesses that you interact with. Accountancy also provides several benefits to businesses that use accountancy properly.
The biggest and most obvious benefit of accountancy is being able to pay your taxes accurately and on time. However, this is a small benefit compared to other vital benefits that accountancy brings. Accountancy can help you keep an accurate spending balance for your bank accounts, as well as give detailed reports of all of your expenses and cash flow which is necessary for audits. One benefit that you can gain from accountancy, is maintaining accurate expenses and being able to reflect that in your products prices. If you do not accurately maintain records of your costs, then you could accidentally underprice your products and actually lose money. Accountancy will give you a detailed projection of your costs and accurately show you your profit margin that you can compare with your labor and other expenses. Many businesses suffer financially because they do not keep accurate records for every aspect of their business, which is why accountancy plays a very strong and important role in a business. Without accountancy, a business would suffer and eventually fail as it would have no records or projections to help it progress.
Need help managing your bookkeeping and accounting? Our entire team hold degrees and are fully qualified to help you fill the need for proper accountancy in your business. Please contact us for a free consultation.
Capital Gains tax is a federal tax penalty that is imposed on capital accumulation, investment and property. Some of the income that is subject to capital gains tax includes the sale of an investment, a home, a family business, a farm or ranch or even a work of art.
The capital gains tax is applied on the difference between the price paid for an item and the money received from selling it, or the capital gain.
The most common form of capital gain for people is the sale of their corporate stock. The capital gains tax rate for individuals is currently at one of its highest rates ever and is at 28% while the corporate rate is at its greatest level in history, namely 35%. There is an inequality with capital gains tax in the fact that people must pay taxes on all of their gains but are only able to deduct a portion of their losses. This particularly applies to investments that fluctuate between gains and losses over time.
In many states taxpayers are liable, not only for the federal capital gains tax but also the state's own form of capital gains tax. This can actually take the combined rate to almost 40%. California and New York are amongst the highest in the country.
For the government, the capital gains tax payment represent 6% of personal and corporate income tax receipts and 3% of total federal revenues. There is a lot of controversy surrounding the capital gains tax that individuals and corporations have to pay but it actually brings in much less revenue for the federal government than most people would think.
In the USA, capital gains are not indexed for inflation which means that the seller pays capital gains tax on the real gain and also on the gain attributable to inflation. This is one reason that the capital gains tax is lower than regular income tax rates.
The difference between capital gains tax and all other forms of federal tax is that it is basically a voluntary tax. People can avoid paying any of the tax by simply not selling their assets. This is becoming increasingly common, especially with the uncertainty of the stock market, and the government estimates that there are trillions of unrealized capital gains which would all be subject to capital gains tax if it was sold.
If you think that starting your own business is a cakewalk, you're wrong. Aside from developing good products and services, you still need to sell them to the market. One of the essential factors in running a business is effectively managing finances. The language of any business, whether big or small, is accounting.
The business scene is always loaded with work pressure. Therefore, there is an ongoing need for handling accounts and finances effectively. Even small businesses need to be organized to achieve success and to do this, the business owner should get the appropriate accounting software. Businesses usually set long-term goals and to reach the goals, accounting management is required. If you want to be successful, you'll need accounting software. Manually doing all the accounting works can lead to a lot of errors which can terribly affect your bottom line.
As owner of a small business, you have to know where funds come from and where the go. If you decide to do accounting tasks manually, it can consume a great portion of your time and unless you've got a degree in accounting, quite frustrating.
Here are some of the benefits that you'll get by using accounting software.
You can finish all the accounting tasks promptly. You will be able to run your small business without too many problems.
You will be provided with correct reports as well as special tools to make accounting tasks a lot simpler. That way, you can manage all the financial data of the business effectively.
In minutes, you can manage the cash flow of the business.
With robust accounting software, it will now be possible to predict revenues, bills, and generating reports.
These are some of the benefits of using accounting software. However, don't purchase the first accounting software that you come across. You see, there are things to consider when selecting the proper accounting software for the business. You have to determine the software's functionalities. It should be user-friendly and most especially, it should resemble the paper counterparts so that you can run the software smoothly. Once you're familiar with the software's layout, you can already explore its functionalities.
Most accounting software is based in the cloud and works well with e-commerce. If you want to enjoy all the benefits, you must be able to choose the finest accounting software that is suited to your small business.
In choosing an accounting software, you need to consider the number of your employees. You can find accounting software that is suited for small business with less than 25 employees. Other software is suited for large businesses with bigger numbers of employees.
Software that is suited for small businesses helps the business owner analyze financial data, customize reports like transaction history, profit & loss, check details, reconciliation details, and many more. By simply looking at the various reports, you can already determine your business status. Some software also offers built-in features like forecasting tools. These tools can be used to manage business risks and control cost of operation.
If you're running a small business, now is time to purchase accounting software. By doing so, you can secure your business's future and you can be certain that all your financial tasks are handled effectively.
So, what accounting software does the Bean Counters Bookkeeping recommend? QuickBooks. In fact, we offer training to those new to QuickBooks or confused with how to best use it. Need training? Let's get on a call and chat.
There are many reasons why accounting is being outsourced more and more by different types of businesses and organizations.
Some may think that using outsourced accounting services is a bad idea because of less control and more costs, but that is a myth that has been proven wrong, especially as cloud-based accounting becomes more common.
In reality, there are greater benefits to outsourcing your accounting services than by organizing your own accounting department or doing your accounting by yourself. We'll go over the benefits of outsourced accounting and allow you to see why it is a popular action that many businesses and organizations are taking.
Using outsourced accounting services can actually save you money.
By outsourcing your accounting needs you do not need to hire employees for their in-house accounting department. This saves you not only money but also time. It costs time and money to find certified employees to operate your accounting department. With outsourced accounting services you don't need to worry about salaries, workers compensation, insurance, or many of the other expenses of having employees. Another great benefit is that you do not have to worry about losing an employee and having to find another in-house accountant to replace the one you lost. The Bean Counters will integrate our services with your own accounting software so that you experience a smooth transition.
You can focus more on the accounting data.
This eliminates having to spend time entering your accounting information and allows you to look at your current situation and make plans for future improvements and developments with the data provided. By being able to maintain your focus solely on payments, invoices and profit and losses, you will be able to spend your time on finding better solutions and maintaining a better relationship with your suppliers and customers.
You have a lower risk of error and problems with your accounting.
It's better to trust your accounting needs with a certified professional rather than trying to do your accounting yourself. Unless you have a degree in accounting, you have a very good chance of making an error. This chance of error is nearly eliminated when you use an outsourced accounting firm that specializes in the field of accounting. These errors can have a negative and dramatic effect not only on your records of what is owed and needs to be paid but also on your current costs and projections related to your profits and losses. By not properly and accurately maintaining accounting records, you run a high risk of failure with your business.
As you can see, outsourcing your accounting needs has proven to provide many benefits. These benefits will not only save you time and money but will also provide solutions to help you grow and expand your business based on the information you receive from your accountant.
Accounting can be a very strenuous task that requires a lot of attention to detail as well as knowledge about the field to have it done correctly. Since accounting can be outsourced so easily and can be done at a lower rate outsourced then in-house, this has proven over time to be the best option. Need a professional team on your side? Give The Bean Counters Bookkeeping a call and let's get your books in order!
There is an art to creating deadlines that work. You want your deadlines to stick so that you can get more done, and be even more amazing than you already are. But, if you tend to underestimate how long something takes, or your skill at doing it fast, you may constantly miss deadlines that you set for yourself or that others set for you. Thankfully, there are ways to ensure that you can set deadlines that stick.
Do The Research
When you approach anything that needs deadlines set, don’t just look at the end result; look at the tasks that take up the work to get to the end result. Understand exactly what each step involves. Find out how long it takes other people to do the task. If you don’t, you can’t make a reasonable deadline.
Test Things Out
When you are asked to do something new and need to set a deadline, try out a small portion of the task to see how long it will take you so you can best make predictions on time. Remember that when someone else is asking you for a deadline or even suggesting deadlines; if they don’t know what it takes, they’re just pulling a date out of the air. You need to do better than that.
Understand the Scope of the Project
Ensure that you ask the right questions about the project so that you know what the true scope is. For example, you're a web designer and someone says, “How much does it cost to build a website?” That leaves a lot of questions unanswered. There is no way to make a deadline with that information.
Start at the End and Work Backwards
Every project has a final deliverable. Start with that deliverable and work your way through all the tasks that need to get done to reach that final deliverable. Make an outline for each project so that you know everything that has to be done. Some people find it useful to make a mind map for each project. Then you can take that and use it to set realistic deadlines that stick.
Break Down Larger Projects
There is much more to a project than the deliverable. There are steps leading up to the end product or end result. For example if you set a deadline to create a new product in 90 days and it requires several steps, you need to set smaller time-frames for each step in order to accomplish that. Now, what steps will that take? The same can be stated about a project like a website. First you need a domain name, then you need to pick colors, then you need to choose design elements, and so forth.
Set Small Deadlines
Once you break down a project into smaller chunks, set deadlines for those pieces of the project. Some things have to be done in a particular order, other things don’t matter. Knowing this helps with assigning and delegating tasks and setting deadlines for them too.
Add Margin Time
There is a law called Hofstadter’s Law which basically says that everything takes longer than you think. So, add in some extra time. Commonly people multiply the time they think it will take by 1.5. However, if you find you are not meeting deadlines, determine the factor you need for your deadlines. It might be two times your initial estimate.
While you want to be impressive as a person, don’t try to do too much at once. Look at your entire schedule. Include free time, sleeping time, family time, alone time, eating, exercise, appointments and so forth into your schedule so that you can be realistic about how much time you have to work on any given project or part of a project.
Creating deadlines that stick is a process that requires some thought. But, once you get into the habit of making deadlines that stick, you’ll be able to get much more done each day. We tend to fill up our time with something - why not fill up your time with activities and actions that are designed to get things done?
When you embark on starting a business, you'll need to decide if you'll be a service-based business or a product-based business (or both). We're going to share some of the pros and cons of each to enable you to make decisions that need to be made. You can run both types of businesses together as well; in fact, this is becoming more an more popular as digital products and courses that complement products are so easy to create.
Both business options offer many pros. Pros like owning your own business, being your own boss, making money from home, doing what you love, serving people you like, and having more freedom to spend with family and friends.
But, how do you know whether or not you should start a service-based business or a product-based business?
The components of a service-based business are:
* You and your skills
Let’s look at the components of a product-based business:
* A product
* You and your skills
Not much different, really. You are in the equation for both - whether you are selling products or services. Both will require sales and marketing and the ability to deliver the service or product on time. Both may require a certain amount of technology and knowledge. In both cases you can outsource a certain portion of the work so that you can reduce your efforts.
Remember, when you outsource, in some ways you are really paying to increase the time you have to devote to a project. If you think of it that way, you’ll be able to outsource more efficiently. You won’t feel like you’re outsourcing because you can’t do it yourself; you’re doing it because you need more time. When you can strategically use other people’s time and skills, you can better your business.
With a product-based business you can typically get someone else to make the product and someone else to do the customer service. Technology will automate the delivery process, and you can simply oversee it and collect the revenue. Thus, you can essentially earn unlimited money outside of the hours it takes to produce them.
With a service-based business you will be required, for the most part, to speak directly to the clients and deliver your service on their deadline. You’ll be trading hours for dollars in many respects. So, in addition to the time factor involved with sales and marketing, and the upkeep of your business, your income will be limited to the number of billable hours you can work on any given day. This can be increased through outsourcing, but you will still need to be intimately involved with the results, which will take your time.
No matter what type of business you choose, one thing remains the same. The need for bookkeeping. If you're embarking on a new adventure and want to make sure your finances are in tip-top shape and need to see where to better allocated your profits, give us a call and let's chat about being your bookkeeping service.
There are no shortcuts when it comes to starting your own business. Launching and operating a new business is all about putting in the time, taking one step further each day than the day before, and above all, being open to learning from everything around you, including your customers. If you are ready to take the entrepreneurial leap, here are seven quick tips for you to consider.
1. Inquire within – It’s passion that builds companies, not just ideas. If you don't have the same feeling about your aspiring venture as you had the first time you fell in love, then consider waiting for the right one.
2. Get to know your customers - Companies serve people. Do you know your customers' needs inside and out? Are you familiar with their pain points? Make learning about your prospective customers your top priority before taking the jump. Let your future customers "co-create" your enterprise. They'll likely be the first ones waiting when you open your doors.
3. Know your market - Do you understand the lay of the land in which you will operate your business? What is your unique advantage? What's your "voice"? If there are other companies offering a similar service in your field, study them closely. Figure out what they are doing right and what you can do better.
4. Hire a great attorney - Nothing substitutes the value of a good legal adviser when launching a business. More important than just about any other team addition, a good attorney will provide the best business education you'll ever get.
5. If you need to hire, hire great - A well rounded, passionate team can overcome just about everything. There is nothing more fun than working with a group of passionate, smart people towards a common goal.
6. Find a bank that loves you - Maybe an old school notion, but there is hardly a more critical relationship in the early days of a business than with one's bank. Don't go for the best-known one, go for the one that loves getting your business. Their support in the early days of your company will go a long way, whether it's with a small credit line, better borrowing terms, etc.
7. Your local government can help - Depending on your business, you will be amazed at how many underused resources exist for new start-ups that are offered by local, city or federal governments. Co-working space, grants, networking events, great introductions - they are often up for grabs.
Make sure to consider these tips if you’re thinking of taking the plunge in starting your own business. You may not think of some of these initially, but they can be a great asset as you’re building your business.