Padgett Business Services® Celebrates 50th Anniversary

50th_anniv_septWe at PADGETT BUSINESS SERVICES® are celebrating 50 years of service! Being in business for 50 years is such an amazing accomplishment and we are honored to be a part of a brand that has stood the test of time for so long.

Walter Padgett launched PADGETT BUSINESS SERVICES® in 1966 after witnessing local business owners struggling with the financial aspects of running their companies. His idea was to help those small businesses thrive. Half a century later, PADGETT BUSINESS SERVICES® continues to run on those same principles.

With dual U.S. headquarters in Georgia and Massachusetts and a network of more than 300 offices across both the United States and Canada, PADGETT BUSINESS SERVICES® is credited with assisting tens of thousands of small businesses with their tax and compliance needs.

“We’re doing something very unique in the market —we make tax and compliance routine so that our clients can stay focused on running their businesses,” said Steve Rafsky, CEO of PADGETT BUSINESS SERVICES®. “One big reason we’ve been able to make such a name for ourselves in this market is because of the network of high-quality affiliates who make up PADGETT BUSINESS SERVICES®. Our secret lies in years of building client relationships and teaching our affiliates the best ways to do just that.”

Thank you for being a part of what has made us so successful. We’re so proud to have made it to 50 years and we look optimistically towards the next 50.

PADGETT BUSINESS SERVICES® not only provides tax-related services, but also assists businesses with management reporting, tax compliance and payroll services. It primarily serves small businesses with fewer than 20 employees, which accounts for about 90 percent of the country’s small businesses.

An Expert Explains the Ins and Outs of Outside Audits

accounting photoBusiness owners ask me this question all the time, and with good reason. Outside audits are intense examinations of your company’s financial systems and controls, including sample testing and outside verification of many transactions on your ledgers. An outside auditor’s opinion will include assurance that your financial statements are in accordance with generally accepted accounting principles (GAAP) and that your business is viable and sustainable. They can cost tens of thousands of dollars and suck up an accounting department’s time for weeks at a stretch. Here’s when you’ll need one.

3 Strategies to Help Generate More Free Cash Flow

accounting photoI previously invested in public companies on behalf of a major asset management company, and we used free cash flow as a measure of a company’s performance. However whether you’re managing a public company or a private one, cash flow is king.

In simple terms, free cash flow is calculated as follows: cash from operations (found on the cash flow statement) minus capital expenditures. When only the income statement is used to measure performance, companies can mask operating issues and manipulate earnings. Furthermore, the income statement fails to take into account the company’s investment activities, otherwise known as capital expenditures.

When free cash flow is positive, the company has cash left over after it has invested in the business through capital expenditures. When free cash flow is negative, a company is not able to generate sufficient cash to support the business.

You may want to consider calculating capital expenditures as a percentage of revenue. In doing so, management teams can evaluate how much of their sales are being invested back into the business.

Since many small businesses are investing heavily to rapidly grow their businesses, they may not generate free cash flow. Now, if a company is growing revenue at a steady growth rate and managing costs below that growth rate, it can generate healthy margins, which should naturally flow through to cash flow. However, such smooth financial performance is not always apparent. These three strategies may help you increase free cash flow for your firm.

Why Business Owners May Not Want to Overlook Cash Flow Management

accounting photoAsk any long-time business owner for their single most important piece of advice on navigating the choppy waters of entrepreneurship, and you may likely hear these three words: cash flow management.

Cash flow is the fuel that drives your business. It can help get you from where you are now to where you want to go with your company. If your business runs out of money, then everything comes to a grinding halt: You can’t pay your bills, attend events, buy supplies or pay your workers. Having proper cash flow management in place may help you avoid having your business come to a standstill due to the unpredictable nature of accounts receivable. These three suggestions may help you improve your cash flow management, and keep your business moving forward.

5 Ways to Boost Your Business Cash Flow

business equipment photoBusiness is a game of revenue, profits and expenditures. If those metrics are out of balance, sustaining a business will prove difficult. Even if your projections show a rapid increase in profits in the next four months, you may not be around long enough to witness them.

The challenge: You have to make enough money to stay open during that time, no matter how rosy the future opportunities you foresee for your company.

This is where cash flow comes in. It needs to be optimized, which doesn’t just mean increasing your revenue (though that might be a piece of the puzzle). Rather, cutting costs, speeding up invoicing and earning interest on your various accounts are the factors that will play the biggest part in keeping your business afloat.

Here are five ways to boost your cash flow to do that.

4 Cash Flow Planning Tips to Help You Avoid Cash Flow Shortfalls

inventory photoCash flow planning refers to the process of identifying and forecasting both incoming and outgoing cash for your business. It is typically done for both short-term horizons (less than a year) and long-term. The purpose of cash flow planning is to identify potential shortfalls and address them in a timely and responsible manner.

But even with proper planning many businesses can find themselves scrambling for cash at a time when they are least able to obtain it. These four suggestions may help you avoid foreseeable cash flow problems in your business.

Photo by Gastev

Will the Overtime Pay Expansion Ruling Affect Your Business

overtime photoThe Obama Administration recently made changes resulting in millions more American workers becoming eligible for overtime pay. The ruling, which applies to business of all sizes and goes into effect December 1, 2016, stipulates that any employee making less than $47,476 annually (or $913 weekly) is owed time-and-a-half pay when the employee works more than 40 hours per week. The change more than doubles the current $23,660 per year/$455 per week threshold.

“This is the most significant move in at least a decade by the federal government to protect worker pay,” says Tom Spiggle, founder of The Spiggle Law Firm, which focuses on workplace law. “The new rule increases by almost five-fold the number of workers who will be considered ‘non-exempt’ under The Fair Labor Standard Act (FLSA) and thus eligible for overtime.”

Photo by ZapTheDingbat

10 Expert Tips on Managing Cash Flow as a New Business

new business photoNew startups should fully understand that running out of money is one of the primary reasons that businesses fold shortly after a launch. This scenario is a proven statistic, but startups can avoid joining the ranks of failed businesses by being smart about how they spend their startup capital.

And that’s crucial: Trying to run a business without carefully managing cash flow is like trying to paddle upstream without an oar: you’re not likely to make it to your destination. Even if you do, you’ll be so exhausted you won’t have the strength to go on.

So, instead, take steps to ensure your business will be healthier. Make sure you’re rowing in the direction of profit by following these 10 tips on how to manage your startup’s money.

7 Tips for Billing Customers that Will Get You Paid Faster

billing photoWhether you’re a freelancer or small business owner, invoicing is a crucial component of your business if you want to maintain a positive cash flow. The problem is that invoicing isn’t always so straightforward. In some circumstances it is straightforward and makes sense, such as sending a customer 10 shirts for $15 a shirt and then billing them for $150.

But what about the not-so-clear invoices where you have to describe the work involved for the client. This scenario can become problematic since it can lead to misunderstandings, questions and confusion, which can ultimately delay the payment.

I’ve been in the invoicing game a while. Our company has sent over 1 million invoices to date. We know what it takes to get paid. To avoid the most common delays, here are seven ways that you can bill your customers without getting overly technical.

Photo by erix!

What Are Some of the Best Cash Flow Management Techniques?

cash photoSmall businesses are in economic recovery mode, but some might agree with me that it has been slower than anticipated. In an end-of-year survey, Wells Fargo reported that “only 39 percent of small-business owners experienced an increase in company revenues over the past 12 months. At the same time, 47 percent expected cash flow and revenues to increase in 2016.” Given a still-far-from-ideal financial picture, we asked three small-business owners—Fritz Heffinger, founder and president of event marketing firm OutCold in Chicago; Diana Goodwin, founder and CEO of AquaMobile Swim School in Toronto; and Shawn Schulze, CEO of SeniorCare.com in St. Louis, Missouri—what their cash flow management techniques are this year.

Why is cash flow management a critical skill for small-business owners?

Photo by Ted Van Pelt

Facing a Tax Audit?
We can Help! Don't Delay!
Contact our Enrolled Agents today!!