If you aren’t yet familiar with digital wallets and the latest mobile payment technologies, you might be interested in the benefits they afford small businesses, such as:

• instant access to funds and real time financial data
• cost savings on third party transaction fees and POS systems
• competitive edge—making it easy for customers to pay quickly and securely on any device.

Here’s a quick look at a few emerging payment options you may want to consider integrating with your business in 2018. 

Apple Pay

What makes Apple Pay so appealing to consumers and business owners alike is its ease of use, speed, and security. Anyone with a smart phone or Apple watch can make a purchase instantly by simply holding their device at a wireless payment terminal set up for Apple Pay.

Apple Pay can also be used to make secure purchases within apps or on the web.

If you run a business where completing transactions quickly is crucial—for instance, a coffee shop or fast food outlet—the speedier your service, the happier everyone will be. Your patrons won’t have to wait, and you’ll make more sales.

If your business already accepts major credit cards (e.g. Visa, Mastercard, American Express, or Discover), or Interac contactless payments, the good news is you should be able to set up Apple Pay without making any changes.

Even better news: Apple doesn’t charge additional fees for businesses who accept Apple Pay.

Apple Pay has been growing in popularity since its launch in 2014, and is currently used around the world (the full list is available here). For more info to get you started, visit the Apple Pay website.

Cryptocurrencies

If cryptocurrencies, like Bitcoin, have been on the periphery of your awareness, look out. These alternate currencies are fast becoming mainstream payment options for small and big businesses alike.

Large companies including Microsoft, Tesla, and Shopify now accept Bitcoin. For businesses trading in large sums, the pros of accepting cryptocurrency can be very attractive, such as:

• no transaction fees
• instant payments
• no exchange rates or conversion fees
• encryption technology (e.g. blockchain) ensures secure transactions.

The ease and affordability of using Bitcoin for global business transactions is a major reason small business owners looking to expand into foreign markets adopt this cryptocurrency.

Of course, any new financial technology comes with its risks. Some worry about cryptocurrency’s potential volatility, and the risk of loss in an unregulated system.

The best advice before investing in any cryptocurrency is to make sure you understand exactly how it works—then weigh all the pros and cons for your business.

To learn more, take a look at Inc’s list of cryptocurrencies to watch in 2018.

Next steps
As digital technologies bring us closer to paperless financial systems, it’s important you offer your customers a range of convenient payment options, so they aren’t tempted to shop somewhere else.

Ensuring your customers can buy from you using their preferred payment options, whether cash, check, debit card, credit card, mobile payment options, or EFT, will help you stay competitive, long-term.

The post New payment methods to consider in 2018 appeared first on Dudley & Associates, Chartered Professional Accountants.

Although hiring a branding expert may be too large an expense in the early days, you can still help your business stand out in the best possible way without breaking the bank.

Just follow these simple marketing moves that will help people to know, like, and trust you.

1. Build credibility with your own email address

A custom email account isn’t costly but is well worth the effort. Sending company emails from a Gmail or Hotmail account will raise questions about the legitimacy of your business (if they ever make it past your customers’ spam filters.)

If you’ve already registered your company’s domain name for your website it’s a snap to set up a custom email address. Many web hosting services such as Bluehost include a free custom email account with their service packages.

If you’ve never registered a domain name, search what’s available at GoDaddy.com or NameCheap.com. Most companies can help you find a memorable domain name with SEO keywords.

2. Build your brand with a customized logo

An effective eye-catching logo will attract new customers, help you stand apart from competitors, build trust in your brand and, ideally, inspire customer loyalty.

Should you have the funds to hire a logo designer, you’ll save time and get a unique, professional result—but best be prepared.

A professional designer will want to discuss your company’s brand identity with you. Being clear on your brand before your first consult will streamline the process, ensuring you get exactly what you want.

This article from LeanLabs help you pin down your unique brand identity with twenty questions. You might also find this free downloadable brand character workbook useful.

And if budget is a concern, try one of these free graphic design tools that help you combine visual elements to quickly create your own logo:

• Canva
• LogoJoy
• GraphicSprings
• LogoGarden

3. Build trust with a professional photo

Before strangers will buy from you, they need to get to know you.

A high quality photo for your website and social media accounts, in addition to professional web content and engaging social media posts, is a must. Nothing makes a business appear more “fly by night” than a faceless LinkedIn avatar—or less professional than a grainy, out of focus selfie.

Expect to pay in the ballpark of $100 for a headshot (or more, depending on the photographer’s hourly rate and the length of your shoot). You can also do it yourself if you’re on a budget following these quick headshot tips from HubSpot.

Next steps

Marketing is an ongoing commitment for every business, and as your business and bottom line grow you can invest in new strategies to maintain a profitable company.

In the meantime, these simple “must do’s” will help you make that the positive first impression with your customers and with would-be investors, potential partners, and lenders.

The post 3 easy and inexpensive ways to look more professional when you’re starting out appeared first on Dudley & Associates, Chartered Professional Accountants.

Often home-based business owners assume they are covered under their homeowner’s policy. Other entrepreneurs, working long hours and pulled in too many directions, may never get around to talking to an insurance agent about their business.

If you’ve been procrastinating on business insurance, consider this: small businesses are much more likely than larger companies to be devastated in the event of an unforeseen loss, and business insurance needn’t be costly. You can save money on a bundled business insurance package, or lower your premiums by simply increasing your deductible.

Take a look at these 4 essential types of business insurance designed to protect businesses of any size.

General liability insurance
Protects business owners should they, an employee, product, or service cause personal injury or property damage to a third party.

Property insurance
Protects business owners who own a building or other valuable assets (e.g. equipment, computers, tools, or inventory) in case of fire, flood, vandalism, or theft.

Business interruption
Protects business owners from financial loss should business activity be suspended for a period of time (e.g. following a theft, flood, or other unforeseen loss).

Vehicle coverage
Protects business owners for damage and collisions when vehicles owned or leased by the business are used by staff to perform their jobs or transport products/equipment.

Save cash with a business owner’s policy

A number of factors come into play when determining business insurance premiums, including the type of business insured, location, gross revenue, and types of coverages required. A business owner’s policy (BOP) offers the most complete coverage in a customizable bundled package, and the best value. This type of policy typically includes:

• Liability insurance
• Property insurance
• Crime insurance
• Business interruption insurance and
• Vehicle coverage.

Insurance for home-based businesses

If you run a business out of your home, you may prefer an add-on or rider to your homeowner or renter insurance rather than a separate comprehensive policy. This can be a cost-efficient option for solopreneurs who don’t own a large amount of inventory or valuable equipment—in other words, a business owner for whom a fire, theft, or flood won’t greatly disrupt or devastate the business.

An in-home policy is another option for home-based business owners who need greater protection than a rider or add-on to an existing policy can offer. Generally speaking, this type of policy costs a bit more than a rider but protects the owner and up to three employees against theft, injury, and other risks to the business.

Final tips

When it comes to protecting your small business, your profit margins aren’t what should determine whether or not to get insurance. What matters is how great the impact would be to your business should something unexpected go wrong.

Get in touch with a reputable insurance company, or seek out an independent business insurance broker, to do a risk assessment for your business—then see exactly what kind of insurance you need.

If cost is a barrier to getting business insurance, take heart; your premiums may very well qualify as an end-of-the-year tax write off.

The post Is business insurance worthwhile? appeared first on Dudley & Associates, Chartered Professional Accountants.

Recent stats from PWC Global show that family owned businesses are no more prepared: 43% don’t have a succession plan in place, and only 12% survive to the third generation.

No matter whether your company has one employee, a hundred or a thousand, a succession plan is essential to minimize the risk of financial loss.

Read on to help prepare for a stress-free transition when it’s time to sell or transfer ownership of your business.

Define your objectives

The starting point for any succession plan is a reflection on your long term goals, both personally and professionally.

Where do you see yourself in five or ten years? What would you like your retirement to look like? Who are the best people to take over if you have to step away from the business suddenly – and how can you best prepare them for the task?

Once you’ve tackled the big picture questions, your next step is to seek planning advice from your lawyer, accountant, wealth management, and business advisors.

At the same time you’ll be able to start grooming your predecessor and training your employees for a smooth transition when you leave.

Tips for successful succession planning

Most entrepreneurs find it daunting to think about everything they’ll need to do before they can leave the company they’ve worked so hard to build. It takes time to create a useful, well-thought out succession plan—so start early, and don’t rush the process.

One of the most important elements of succession planning is clear and timely communication. Be sure to keep key stakeholders, business partners, employees, and family members involved in the planning process early and often.

Set a reasonable timeline for the creation of your succession plan and try your best stick to it. Once you have a plan in place, schedule a review on a yearly basis. It’s always wise to have contingency plans in place in case any sudden life changes require an unexpected exit.

Many business owners time an annual review of their business plan along with a review of their succession plan to ensure both are always up to date.

Final tips

A wealth of information is available online for small business owners ready to start succession planning. Free and low cost tools—including this self-paced e-course—can help you get started and stay on track throughout the process.

Although it’s impossible to predict how long it might take for a small business to sell, a good guideline to keep in mind is two to five years. In addition to the other professionals you’ll want to consult as you draft your succession plan, you may want to consider the services of a business broker.

Ask your business colleagues for a referral to a local broker with experience in your industry. A good broker can really streamline the sales process and maximize the perceived value of your business to buyers.

It can be heart wrenching for a business owner to walk away from their company, and some entrepreneurs will plan to stay involved in some way for a few months—or indefinitely. Many find maintaining an ongoing role in their business can mean a more satisfying, and financially stable, retirement.

The post What is your succession plan? appeared first on Dudley & Associates, Chartered Professional Accountants.

On the one hand, if your business owns the car you’ll have a long-term asset and may qualify for more tax deductions. On the other hand, buying a car is a huge expense and monthly lease payments tend to be lower than car loan payments; they may also be tax deductible.

Learn more about the benefits and drawbacks of buying versus leasing a vehicle for your business:

Why buy a company car?

The major benefit to purchasing a car is that it becomes a company asset that offers a number of perks for business owners:

• You can write off your gas, mileage and maintenance expenses
• Your interest payments on a car loan and depreciation costs may also qualify as eligible business expenses
• You may enjoy lower insurance and liability rates on a vehicle owned by your business

The big con for many business owners is that buying a car is a major expense—one that may require you to finance a depreciating asset. You will, however, maintain the residual value on your investment as you pay it off, and once you own the car you can use it for as long as it can do its job.

If you decide not to buy a vehicle but choose to use a personal vehicle for business, you may also be eligible for itemized deductions come tax time. Be sure to check with your country’s small business tax rules and regulations to confirm which vehicle-related expenses you may be able to write off.

The pros and cons of leasing
For many small business owners, leasing a company car is the more attractive option. Typically, it comes down to cost and cash flow. When you lease a vehicle you won’t have to come up with a down payment or collateral—and monthly lease payments tend to be lower than car payments.

The flip side, however, is that leasing tends to cost more in the end—and those affordable monthly payments won’t add up to an asset for your business. Another point to keep in mind is your insurance requirements may be different and amount to higher fees.

Also be aware of the maximum number of miles stipulated in your lease agreement—if you exceed the limit it can also mean additional fees at the end of your payment term.

If you’ll be putting a lot of miles on a car, leasing allows you to upgrade to a new car on a regular basis – and doing so may allow you to dodge costly repairs on an aging vehicle.

As a final note on the “plus” side, just like business owners who purchase their company vehicle, those who lease can write off some of their business-related car expenses.

Final considerations

Before you commit to buying or leasing a company vehicle, do a cost-benefit analysis. Take note of the car’s total cost over the car loan or lease term including:

• Monthly payments, including interest
• Anticipated mileage
• Maintenance, fuel, insurance, parking and other related costs
• The value of the car at the end of the lease vs. the ownership period.

Talk to your accountant about which expenses you can claim on your income tax, whether you choose to lease or buy.

At the same time you may want to seek advice on how to track your company car costs accurately and efficiently. Keeping good records is a must to make sure you don’t miss any eligible write offs for your company car—and so everything is in order if you are ever called for an audit.

The post Is it better to buy or lease a company vehicle? appeared first on Dudley & Associates, Chartered Professional Accountants.

These tips will show you five simple ways to promote your local business without breaking the bank.

Get free press

Advertising rates for local newspapers and radio stations can be way too costly for a small business. Instead, think about how you might generate a story the media will want to share. For instance, a grand opening, anniversary, community fundraiser or special event can be the perfect opportunity for an interview on local TV or radio. Likewise, get in touch with your local newspaper to see if they’d be interested in an article about your latest product launch or move to a new location.

Cross promote

Partnering up with another local business for a product release, new project, or service bundle can exponentially increase exposure for your company. Brainstorm non-competing, complementary businesses in your area – then think about how you might work together to attract new customers. Cross promotion creates an opportunity to reach out to each other’s mail lists, add each other’s business name to any mail outs, post information about your partner’s company in store and team up on an event you can invite all of your customers to.

Support a cause

Start or get involved in a local fundraiser. Giving back will raise your community profile and provide free advertising, while creating goodwill as you help an individual or organization in need. Schools, libraries, hospitals and not-for-profits all benefit from volunteerism and community fundraisers. And if that isn’t reason enough, customers want to support businesses that care. Demonstrate that your company is interested in improving the wellbeing of your community and you’ll instantly gain new fans.

Host a workshop
Contact your local library, Chamber of Commerce or small business bureau to arrange a free educational talk on a topic of interest to your target customer. Providing valuable information is a great way to build credibility, trust and initiate customer relationships. Consider a prize draw for a free product or service – and be sure to have promotional available to take away, including information on your loyalty program to entice new leads to make a first purchase.

Run a contest

Offering a prize giveaway is a fantastic way to generate buzz online and in your community. It’s also a great way to build a mailing list you can send promotional information to (with permission, of course). You can work together with other local businesses in your area to extend your reach when promoting the contest, with each company donating a prize to the basket. Without much investment, you’ll be able to offer a much more valuable prize this way – and reach many more potential customers with every business doing their part to get the word out.

Final tips

Marketing your business locally needn’t cost a lot of money, but it does take a regular time commitment. Build free promotional activities into your annual business plan, get strategic about timing your marketing.

The post How to get your business noticed on a shoestring budget appeared first on Dudley & Associates, Chartered Professional Accountants.

Capital gain (or loss)

This is the difference in the overall value of your investment between when you purchased it and now (or the date that you sold it.) You can work it out as:

((Current or sale price per unit – purchase price) * number of units) – fees and taxes

For example, let’s assume that you purchased 100 shares of Amazing Blue Widget Co. for $50 each and then sold them for $80 each. You had to pay $10 to buy, $10 to sell and 15% tax on the profit, this would work out to: (($80 – $50)*100) – $20 – $450 = $2,430 or a return of 48.6% on your original $5,000 investment.

Interim income (dividends, interest etc.)

This is the amount that you’ve received in interim payments over the life of your investment. It’s calculated as:

(Interim % * value of investment) – taxes

You would need to work this out for each interim payment that you receive.

For example, let’s assume that you’ve held 100 ABWC shares for three years, and that they paid dividends of 3% a year; in the first year the shares were $50 each, in the second, $60 each and in the third $80 each. Your return would be: 3% of $5,000, $6,000 and $8,000 less tax; this works out to: $485.

Your total return

This is equal to your capital gain (or loss) plus your interim income. You can then compare this to your original purchase price to understand what percentage gain or loss that you’ve made.

For example, your purchase price of ABWC shares was $5,000; over three years, you’ve made $2,430 in capital gains and $485 in interim returns (dividends) for a total of $2,915. That’s an increase of 58.3% over three years, or 19.4% a year – Not bad!

You should compare your total return to your targets and life goals. This can help you decide if you should keep your investments, or if it would be wise to sell them.

The post Investment Basics – Understanding Your Gains And Losses appeared first on Dudley & Associates, Chartered Professional Accountants.

Unsurprisingly, flexibility and feeling in control ranked first in the “love” category. Meanwhile, almost 60% said bookkeeping was hands-down their most hated task.

Most business owners understand that effective financial management is key to their success. But lack of knowledge, frustration, and even avoidance can add up to accounting mistakes that derail future growth.

Protect your business and reduce your stress by avoiding these five costly accounting errors.

Mixing personal and professional finances

From day one, business owners should have a separate bank account in which to deposit their income and pay their business expenses.

It’s also crucial to designate a business-only credit card. Come tax time, separate statements will make submitting claimable expenses quick and easy, while reducing the risk of a painful audit.

Letting accounts receivable slide

It’s frightening easy to lose track of which customers have paid you and which clients are late. Implement a strict policy and schedule for tracking accounts receivable and pursuing unpaid invoices.

• ask customers to pay at the point of purchase or no more than 30 days later;
• contact clients to confirm they have received your invoice and to agree on a payment date;
• follow up immediately when payment dates are missed; and
• keep accurate, up-to-date records of each client’s payment history.

Investing in a cloud-based accounting solution can make AR a breeze by automating your monthly invoicing – and contacting late payers with a reminder email.

Not using tech to track your expenses

Tired of chasing down missing receipts and struggling to justify claims come tax time? There’s an app for that! Choose from numerous options, such as Receipt Bank, Shoeboxed or Expensify.

Many of these apps generate expense reports that are easy to share, or sync automatically with accounting software.
Neglecting to strategize for long-term growth

Effective accounting means managing day-to-day finances while making provisions for future growth. Software and cloud-based solutions offer easy ways to track your financials, but they also generate reports and provide analytic tools SMB owners can use for future forecasting.

Familiarize yourself with the reports your software can generate to track long-term trends, identify and mitigate risk, and discover new ways to increase profitability. Talk to your accountant about which reports and metrics are most important for your particular business and how to utilize them.

Final tip: Don’t go it alone

Small business owners are rarely trained accountants. Don’t try to manage your company’s finances all by yourself.

Collaborate with a trusted professional, invest in quality IT solutions, and spend some time familiarizing yourself with relevant tools and trends.

You’ll feel empowered, which is step one to forging a more love-filled relationship with small business accounting!

The post Avoid These 5 Costly Accounting Mistakes appeared first on Dudley & Associates, Chartered Professional Accountants.

But what many business owners don’t take advantage of are key insights that can improve customer care and increase sales. Here are some smart ways you can use your accounting software to help boost your bottom line.

Gain insights that increase sales

If you’re not tapping into your accounting software analytics to better understand your customers, you’re missing a major opportunity to close more sales.

Most accounting software can highlight your biggest spenders and buying trends. How would knowing who your best customers are, your biggest selling products and how much each customer spends impact your marketing decisions – not to mention help you fine tune your sales strategies?

By the same token, when you know which products and services aren’t selling, you’ll be able to make more profitable purchasing decisions. Most accounting software offers inventory tracking to help you decide what to keep on the shelves, which products to sell off at a discount and which items to phase out altogether.

Improve customer care and boost profits

Accounting software can offer peace of mind when you know your financials are accurate and up to date. But another major advantage of an online accounting solution is how much time you’ll save by automating processes like invoicing and payroll – giving you more time to follow up with clients and seek out new prospects.

We all know how important the personal touch is when it comes to sales. So why not use your accounting software customer data to help remember your customers’ birthdays or thank them when they’ve hit a milestone – spending more than $5,000 on your products, for example?

With enhanced customer data at your fingertips, your business will earn a reputation for personalized service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so upselling becomes a snap.

How will you use accounting software to grow your small business?

Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.

You may be surprised at the many ways accounting software can help you better serve your customers or improve your sales strategies when you look at its true potential.

Now that you have a handful of ideas for making better use of your accounting software, what will you do differently to enhance customer care, improve your profits and continue to grow your business?

The post How Accounting Software Can Increase Profits appeared first on Dudley & Associates, Chartered Professional Accountants.

After all, the young, tech-savvy, socially conscious demographic known as Gen Y are currently the largest living generation, navigating the work force in record numbers. And the boomers may be retirement age, but that doesn’t mean they’re ready to stop working. Many baby boomers are choosing to enjoy “encore careers” – jobs that allow them to continue to apply their skills and experience to personally meaningful projects.

Here are a few ways to help these two groups work together, so your business benefits from their unique and complementary skills.

The best of two worlds

Millennials offer incredible potential to the businesses they work for. Young, tech-savvy and interested in making a difference in the world, Gen Y only lack one key trait: experience.

Boomers, on the other hand, know how the business world works, and many enjoy sharing their knowledge with younger colleagues. However, unlike millennials, they may be “stuck” doing things less efficiently, simply because they don’t adapt easily to new technologies.

With their distinctive skill sets, pairing up a young worker with an older employee can be mutually rewarding – and highly beneficial – if you know how to manage the relationship.

Partners – not protégés

Trust is the foundation of every good working relationship. Building trust among your younger and older workers can mean establishing a very different work dynamic than your older employees may be used to.

To avoid tension, avoid creating hierarchies at work. Even in a mentor-mentee relationship, it’s important that each person see themselves as an equal. That way when someone doesn’t know something, there’s no reason to feel embarrassed. No one is the boss; everyone is there to exchange knowledge and experience.

Communication is key

Being digital natives, Gen Y may prefer communicating with tweets, texts and instant messages; boomers, on the other hand, prefer a phone call, email or face time.

Moreover, older generations may be used to a more formal approach to communicating at work, particularly with management. They may interpret a more casual communication style – common among their Gen Y peers – as a lack of respect.

You can help bridge gaps in communication with weekly staff meetings. You might even consider creating a communication policy: group emails for important matters that affect everyone, and the communicator’s preferred form of communication for other matters.

Final tips

While you can’t necessarily influence how well any two employees work together – after all, there’s more to any working dynamic than generational tendencies – an awareness of how your staff work best and an attitude of flexibility can make a huge difference.

Find ways to support your employees as they nurture each other’s growth. When it comes to problem-solving, encourage your boomer staffers to help younger workers understand their reasons behind their decisions with examples based on their experience. Likewise, millennial staff should think about the best ways to teach their older colleagues, who are less comfortable with technology, how to use a new web tool or software.

With these tips in mind, you’ll be on your way to nurturing the skills and talents of all your workers – and creating a harmonious atmosphere for everyone.

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