Small businesses have become more prevalent than ever. With more and more people starting their own business, a common question that arises is whether your company should provide health insurance.

 

Is Your Small Business Required to Provide Health Insurance?

 

Under The Affordable Care Act (ACA), small businesses with less than 50 employees are not required to provide health insurance to their employees. This means that your company will not face a tax penalty for not providing insurance.

 

However, if you decide to offer your employees health insurance, you may qualify for a “Small Business Health Care Tax Credit.” There are a few requirements in order to receive this credit, such as:

 

• The company should have less than 25 full-time employees

• The average salary of workers should be lower than $50,600 per year

• The company should pay at least 50% of the cost of an employee’s health insurance premium

 

We recommend reviewing the IRS website for the most up-to-date information regarding the Small Business Health Care Tax Credit, as it may change from time to time.

 

Why You Should Consider Offering Health Insurance

 

Improved Hiring and Retention

A major benefit of being employed is the health insurance that comes with it. Without health insurance, the out-of-pocket expenses for an individual can get very hefty in no time. In fact, many employees would choose health benefits over retirement benefits if only one were offered. Without a doubt, offering health insurance improves employee retention rates.

 

There are several different health plan options to choose from depending on desired coverage and cost. A great starting point to research health insurance providers. You can also access a huge network by visiting healthcare.gov.

 

Lower Payroll Taxes

The financial advantage of providing health insurance through your small business is the tax benefits. Typically, pre-tax dollars pay for health insurance. This means your taxable income decreases. A lower taxable income results in lower business payroll taxes and lower income taxes for employees.

 

Healthier Employees

A healthier workforce results in increased productivity. In fact, striving for a healthy workforce proves to your employees that you care about their mental, emotional, and physical well-being. When your employees know that they are covered, they have less mental fatigue and can live their lives without worries.

 

Many health insurance companies offer additional well-being programs to employees at no additional charge. These programs are designed to promote health and fitness. The programs reward your employees by offering discounts or even cash rewards for participating in health challenges and similar programs.

 

Deciding on health insurance options is a big decision for any company. The most important step is to research which coverage is best for your company and employees.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

 

Small businesses are extremely important. They provide employment to boost the local economy, which creates tremendous value. In order for businesses to reach optimal growth, they must monitor their financial transactions carefully, which is why having a bookkeeper can set a business up for success.

 

Bookkeeping activity can help businesses by overseeing their daily financial transactions while they are recorded in the general ledger. Consistent bookkeeping helps in financial tracking and in the preparation of accounting statements.

 

However, most small businesses struggle with bookkeeping due to time and resource constraints. Without proper or professional guidance, many small businesses commit bookkeeping mistakes that turn out to be costly. Next, we’ll identify some of these common mistakes and learn tips to avoid them.

 

Failure to Keep Receipts

 

Many bookkeepers fail to classify and file relevant receipts associated with transactions. This happens mainly in the case of small-value transactions, for example, food receipts. A proper record of them is necessary for proof of expenses. Especially in the case of an audit, having receipts is crucial.

 

To avoid this, it is advisable to keep a special folder for filing these receipts. Also, make sure to train your bookkeeping staff about the importance of recording every transaction for long-term use.

 

Wrong Category Entries

 

Bookkeeping involves the categorization of every transaction in a suitable account within your financial statements. These accounts are typically numbered. This categorization will be a great help for your accountant in analysis while preparing financial documents.

 

If your organization doesn’t have a proper chart of accounts, it can confuse the bookkeeper. For example, common mistakes include using the wrong expense account. The primary solution to this mistake is to have a solid chart of accounts based on your organization’s business activity prepared for you and train on it.

 

When you come across a transaction that you don’t know how to categorize, put it in a special account for review. “Ask My Accountant,” or sometimes this account is referred to as a suspense account. Inquiring from the proper channels will prevent guesswork.

 

Lack of Data Backup

 

Today, we live in a digital world. It is always good to digitize your bookkeeping activities using accounting software.

 

It’s recommended to make sure to have a backup option in the form of paper printouts or a second cloud storage device where copies can be stored. A lack of such backup might cause you trouble in the case of any technical failure or data loss. For example, the practice of taking daily transaction printouts from your software will be helpful in case your online backup collapses.

 

Reconciliation with Bank Statements

 

Human data entry errors are inevitable during bookkeeping. Errors such as entry reversal (credit/debit), wrong transaction value, typos, etc. are very common. The only way to rectify this is by cross-checking entries with your bank accounts. For example, an income of $300.00 wrongly entered as $30000 can adversely affect your entire understanding of your business’s health. Make it a habit to reconcile your bank accounts as soon as new bank statements become available.

 

Bookkeeping activity is crucial for navigating your business successfully. Give it the priority it deserves, and don’t forget to provide adequate training for your personnel.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Choosing the right media channel for your small business is one of the most important steps of the digital marketing process. In order to get the best possible ROI, you need to understand that having a solid social media strategy provides valuable opportunities to connect your brand with its desired audience.

There are so many new and upcoming social media platforms in the market that it becomes difficult to know which one will work best for you. Even marketing agencies struggle to stay abreast of the latest social changes. Pinterest alone has changed its algorithms entirely in the last 3 years. Let’s examine some of the most popular social media platforms for 2021:

Facebook

One of the biggest social media channels around, Facebook sees around 2 billion users every month. This amounts to around a third of the total world population. Most of the content forms work great on this platform including stories, live videos, text, images, and videos. The Facebook algorithm ranks content that stimulates meaningful interactions and conversations between users, especially from friends and family.

YouTube

This video-sharing platform (owned by Google) is also the second-largest search platform after Google’s text-based search engine. Billions of video hours are watched every day by people all around the world. YouTube allows you to create and customize your own channel. When you upload videos, users can view, share, comment, and subscribe to your channel. YouTube is known for being one of the best options for creating cost-effective advertising campaigns. Think of it as an affordable alternative to television ads with several different ways to reach your audience.

Instagram

Known as a video and photo-sharing platform that allows you to share videos, photos, stories, and live brand stories, Instagram also recently launched reels, a new way to create and discover short videos. As a small business owner, you can start with an Instagram business profile and make use of the various analytics tools offered by the platform. Third-party tools such as Buffer, Later, or Hootsuite allow you to manage and schedule posts as well as track social media engagement. You’ll need a Facebook account to postpaid ads to Instagram. Facebook purchased Instagram many years ago.

LinkedIn

This job posting site and has now evolved more into a professional social networking platform where experts network and build their brands. Users can easily network with other professionals, read and share content posted by thought leaders, and build personal brands. LinkedIn is an excellent site for establishing your authority and thought leadership in your particular industry. This helps attract new talent to your business/company. The site offers numerous advertising opportunities like personalized ads, content boosts, and display ads.

Twitter

This is a platform for sports, news, entertainment, politics, and much more. Twitter is unique due to being the only social media channel that allows only 280 characters per post, which they brand as ‘tweets.’ It places a strong emphasis on real-time tweets and things that are happening right now. Twitter is frequently used as a customer service network. According to Salesforce, Twitter is similar to a 1-800 Customer Service number. The platform also has social media customer service tool tools like Buffer Reply which helps you manage conversations.

TikTok

TikTok is the newest social media channel. Its popularity has risen since the worldwide lockdown. Currently, it has over 1.5 billion downloads in both the App Store and Google Play Store. The app enables people to make short-form videos in a variety of genres such as education, dance, comedy, etc. The duration of the video varies from 3 to 180 seconds. The app has more recently begun transforming into a marketing and advertising haven.

Alignable

This social media platform is geared towards small business owners. It works similar to a referral network where businesses connect with other small businesses. It enables them to ask for suggestions, refer customers, shares expertise, etc. Alignable has two memberships: free and premium. With the free version, business owners can network, create a profile, seek support, etc. Currently, there are over 6 million businesses listed on Alignable.

Reddit

Reddit is considered to be the internet’s front page, where people can post questions, images, links, and vote for others. It operates like a bulletin board. Registered users may submit a variety of content like text posts, links, images, etc. These are voted down or up by other users. Posts are categorized according to communities called “subreddit”.These address numerous topics like pets, fitness, health, etc. Submissions with high votes appear at the top of the bulletin board. If they get sufficient votes, they may end up on the site’s front page.

Pinterest

Pinterest is where users go to seek inspiration and learn new things. It is quite different from others where the primary focus is on engagement. The site is primarily used by individuals and small businesses. Visitors who want to buy or try new things, often visit Pinterest. Having your small business represented on Pinterest allows you to get your brand in front of your consumers and shape their purchasing decisions.

Snapchat

The Snapchat social media app is a platform that lets users share short videos (snaps) and photos between friends. Snapchat was the first social media platform to use the stories format. Setting up a business account on Snapchat allows users to create several different types of ad campaigns. One thing that sets Snapchat apart is the ability to create ads with augmented reality experiences.

Although there are many more social media channels out there, the ones listed here are the most popular and useful for small businesses. Regardless of how big or small the platform is, select one based on where your target audience is active in order to achieve the best results.

 

How FINSYNC Can Help

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

For many small business owners, accounting terminology can be challenging. The concepts make sense but the phrases don’t. Most owners started a business out of a passion for a product or service, and not necessarily because they love administrative tasks. That said, you’ll need reliable accounting books frequently.

If you haven’t brushed up on your accounting terminology lately, here are some concepts you will want to review:

Accounts

This term can mean what you are probably accustomed to bank accounts, credit card accounts, etc, where you have a number issued by your financial institution. However, ‘Accounts’ also refer to the various categories that are part of your Chart of Accounts.

Chart of Accounts

Your chart of accounts is a series of ‘categories’ that various transactions can be applied to. Your chart of accounts is specific to your business and is often set up when you adopt accounting software for the first time. Each account in your Chart of Accounts typically has a numerical code that can vary in terms of the number of digits.

Cash Basis

Your business’s ‘Basis’ is like a setting for your books. When set to ‘Cash,’ everything revolves around when money moves. You recognize income when you receive money versus getting a deal signed. You recognize an expense when you pay it, not when you get billed.

Accrual Basis

When you are using ‘Accrual’ as your basis, you will recognize income as soon as you earn it in a category/account called ‘Accounts Receivable.’ You’ll recognize expenses as soon as you get billed in a category/account called ‘Accounts Payable.’ See below for more on these two general ledger accounts.

Assets

At the top of your Balance Sheet, ‘Assets’ represent stores of value for your company. Cash, real estate, and equipment are assets but so are rights to value in the future. Your accounts receivable (money owed to you by clients) is an asset. If your company has made loans to others, that loan or note receivable is an asset as well.

Liabilities

On the right side of your Balance Sheet, liabilities are what your company owes. Bills are represented by ‘Accounts Payable’ while money owed overtime or multiple installments would fall into a ‘note payable.’

Equity

Equity is the value of shares held by owners. It can be thought of as what would be left over if all Assets were sold and then all liabilities were paid off.

The Accounting Equation

The interaction of the three Balance Sheet sections is often referred to as ‘The Accounting Equation: Assets=Liabilities + Owner’s Equity.

Revenue

What is revenue?  Revenue, sometimes called sales or turnover, is the total income generated by a business from the sale of goods or services. Revenue is the money that your company receives selling goods or services.

Expenses

Also known costs, there are several categories of small business expenses to stay in business. The two categories in cost accounting are a variable and fixed cost. The fixed costs differ in that these numbers stay the same regardless of the company’s output. When we calculate variable costs, these numbers fluctuate week after week, depending on the sales volume.

Profit

When you have more revenue than expenses, your company is running at a profit or sometimes what is referred to as ‘in the black.’ If you have more expenses than revenue, you are running the company at a loss, which is also referred to as ‘in the red.’

Gross Profit is the revenue from sales minus the costs to achieve those sales. The cost associated with sales is known as “Cost of Goods Sold” or “COGS” and is often in its own section on your income statement. This number tells you exactly how much your company would have made if you didn’t have administrative or other expenses that weren’t directly associated with the product or service you provide.

Retained Earnings

When a business runs a profit, cash accumulates within the business. Owners may decide to pay dividends (which reduce retained earnings), or they may keep the money on hand for reinvestment in the company. Some companies consider the statement of retained earnings the fourth financial statement.

Accounts Receivable (A/R)

If you are using the accrual basis of accounting, you’ll show an account/category called ‘Accounts Receivable’ which represents all of the money that is owed from sales such as invoices you have sent to clients but that have not been paid yet. When the client pays you, your ‘A/R’ total goes down and your cash goes up.

Accounts Payable (A/P)

Sticking to the accrual basis of accounting, ‘Accounts Payable’ is the money you owe vendors who have already billed you but you have not paid yet. When you pay a bill, your ‘A/P’ goes down and your cash goes down.

Learn these concepts, and you will be in good shape to have an informed conversation with your accountant or banker if you’re seeking financing.

 

 

Stay up-to-date with the latest trends and other tips and tricks FINSYNC’s blog brings to small businesses.

The latest trends in digital marketing show that social media platforms are quickly evolving into online marketplaces. Moving beyond the realms of creativity and connectivity, they offer a vast customer base for businesses. While there are multiple social media channels across the internet, each platform comes with its own set of advantages and disadvantages. Moreover, there are differences in content types, formats, and audiences.

 

For businesses seeking to get started with social media, choosing a single platform that best aligns with your product or service is a great first step. Then comes the formulation of an effective social media strategy.

 

Let’s explore some social media trends that businesses can leverage in 2021, from e-commerce to Social Commerce.

 

According to experts, more than 50% of sales across 14 major sectors are happening through social media. In a way, there is a thin line between E-commerce platforms such as Shopify, BigCommerce, or WooCommerce integrated with WordPress and social media. Platforms such as Facebook and Instagram are offering separate business profiles for dedicated campaigns and direct sales. The integration of payment gateways and fintech applications is making the process much easier.

 

*Instagram is owned by Facebook, and Facebook Ads Manager must be used to advertise on Instagram.

 

Create Follower Communities

 

A loyal social media follower group is just as powerful as a team of sales executives. Proper interactions and responsiveness are crucial in creating a robust customer retention management system within the platform.

 

Make your followers brand ambassadors of your product/service. The user-generated content, such as testimonials, feedback, etc., can help more than you think in your business expansion. Consumers increasingly respond to relatable stories over rote advertising copy.

 

Influencers and Collaborations

 

The power of social media lies in its multiplier effect. Likes, shares, and comments from your network can reach any corner of the world, especially if your content goes viral. At times, it requires a push from someone with massive social media influence to spread the word. Influencer marketing is a buzzword in the digital marketing arena. One way to promote your business is by paid collaborations and reviews with influencers across different social media channels. There are even influencer marketplaces where you can read about what industries they promote and how successful they are.

 

Effective Analytics

 

Real-time marketing analytics is one of the best rewards of digital marketing. The fact that you are a small business should not drive you away from dealing with analytics. All platforms offer graphical analytics tools that even someone without a statistics background can understand.. Leveraging this data allows you to optimize your strategy and content over time. This will make your marketing campaigns successful by reaching out to a larger, more targeted customer base.

 

Leveraging New Platforms

 

With the reduction in average internet bandwidth cost, video platforms are becoming increasingly popular. In content marketing, short videos are grabbing users’ attention faster than other mediums. This clearly explains the rising popularity of mediums such as TikTok. Many companies are already leveraging TikTok influencers to promote business through short-format videos. These videos can cover product descriptions, reviews, or creative ad campaigns.

 

Small business owners often struggle with low marketing budgets. However, the new social media trends suggest that it can be a very effective low-cost marketing alternative. As you get familiar and grow success with your first platform, you can add others that are relevant to your business.

 

No matter what platform(s) you choose, remember to optimize your profile:

◦ Use crisp, clear, well-lit photos.

◦ Spell-check your written content and be sure you are using terminology your intended audience can understand.

◦ Avoid a “ghost town” by posting frequently.

◦ Respond to comments, likes, etc., quickly to let your audience know you care.

 

Now, it’s time to choose your social media platform. Here are some choices:

◦ Facebook

◦ Instagram

◦ LinkedIn

◦ Twitter

◦ TikTok

◦ Alignable

◦ YouTube

◦ Tumblr

◦ Reddit

◦ Snapchat

◦ Pinterest

 

How FINSYNC Can Help

 

There are 3 primary ways FINSYNC helps business owners. (1) CO.STARTERS courses through FINSYNC can help turn your business idea or side hustle into a thriving business. (2) On our website, you can also apply for a business bank account. (3) In addition, the FINSYNC software allows you to run your business on One Platform – invoice customers, pay bills, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Setting goals for your business helps identify opportunities for success. Achieving success without having a plan in place first is much harder. With 2021 right around the corner, it is time to embrace change and develop a goal-setting strategy for you and your business. A good first step for your business to achieve is to begin setting clear and realistic goals.

 

Get Started Setting Goals

 

The process of setting goals begins with determining what you want to accomplish in a time period. Business goals or Key Performance Indicators (KPIs) should be objectives tied to the vision for your business.

 

It may sound cliché, but writing down your goals on pen and paper makes it more likely for you to achieve them. According to an article by Inc., you are 42% more likely to achieve your goals if you write them down.

 

In case you feel stuck about where to get started, these are some easy goals you can set for your small business:

 

◦ Reduce business expenses

◦ Increase your website traffic with SEO

◦ Hire your next employee

◦ Improve your social media presence

◦ Introduce a new product or service

 

To help you set the most effective types of goals, we strongly recommend using the SMART goal-setting method. You can find several step-by-step blog posts on how to set SMART (Specific, Measurable, Attainable, Relevant, and Time-bound) goals by doing a quick Google search.

 

Don’t Lose Track of Your Progress

 

Keeping track of progress allows you to monitor whether you’re on the right track or need to make adjustments. With many different ways to track your progress towards your goals, let’s discuss some of the methods you can use to start tracking your progress:

 

◦ Planning and organizing. Develop a plan on how you will accomplish your goals. It can be as simple as setting dates to check back on your progress or listing out the steps you need to take.

◦ Set objectives. This can be especially important if you have employees. Fully understanding expectations increases the likelihood of embracing tracking goals.

◦ Create milestones. Think of this as breaking your larger goals into smaller pieces. This will help you assess how far you’ve come and figure out the next steps in achieving your larger goals.

◦ Celebrate the small wins. Doing so will help you avoid getting burned out. We live in such a fast-paced world; we always begin focusing on the next big thing. Taking the time to celebrate small achievements helps you appreciate the process towards the right path. In addition, this helps build more confidence.

 

Build Good Habits

 

Accomplishing your goals is a direct relation to the habits you form. Building good habits helps you reach your goals more effectively and efficiently. For example, you can begin by improving your time management or setting a work routine. Think of these habits as incremental steps to reaching your goals.

 

Taking the time to look at your organization from a broader perspective will give you greater confidence to reach the next level in your business. Keep in mind you will need to rethink and refocus your business goals as you make progress and your situation changes.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.