Bookkeeping using Profit First is one of our foremost product offerings at Exigo Business Solutions. When you outsource your bookkeeping to us and add Profit First, you will immediately start seeing a profit with each pay cycle. Your cash flow management will improve. And your business will run more efficiently with increasing profits over the following month and years. Here is a rundown of the specifics of how Profit First with your bookkeeping works.
When you outsource your bookkeeping to us, your books will be done accurately and on time. Accurate bookkeeping is essential as businesses startup and as they grow. Although many businesses outsource their bookkeeping to get the job done right and to save money, they commonly do not appreciate the many benefits that an outsourced bookkeeping service can offer.
Identifying and tracking key performance indicators of your business provides you with invaluable insights into your finances, operations, emerging opportunities, and potential problems. We will help you identify the specific data needed and create the necessary metrics so that you can track the most important aspects of your business. The insights that you gain will lead to improvements in your operations and that will help generate more profits.
The Profit First cash management system starts with a change of your mindset in regard to cash flow. When we help you convert to Profit First, you will start by changing how you view incoming revenue, expenses, and your profit or loss. Most businesses take their revenue stream, subtract expenses and come up with profit or loss. When we help you switch to Profit First, you will take incoming and revenue and subtract your profit. What is left over will be your expense. This guarantees a profit with each pay cycle.
Then you will learn how to upgrade your cash flow management so that you cut out unnecessary expenses, pay off debts in the most efficient manner, and routinely put aside money for owner’s pay and taxes as you go.
Accurate and timely bookkeeping is not only the key to making the Profit First system work, it is basic to running an efficient and effective business. We will help you start using applications, like Receipt Bank, to make your bookkeeping processes run more smoothly, save time, and reduce expenses.
The Receipt Bank app allows you to make digital images of all of your paper receipts. The images are uploaded into the application and all of the data is converted to digital information that can be loaded into your bookkeeping software. The advantages of this approach are that you can always access the information via your bookkeeping software and you are not accumulating boxes of paper receipts that you end up storing for years. You will create the images of your paper receipts but you can send the information to us for coding of the transactions. Because we work with this app for many clients we will typically do that part of the job more efficiently and cost-effectively than you can in house.
Errors tend to creep into any bookkeeping data for any business. Our monthly review of your QuickBooks files for accuracy and consistency finds any inaccuracies and fixes them. By doing this we keep errors from building up and hurting your business.
All too often, data in your bookkeeping software may not square with that in your bank account. Monthly reconciliation of all bank accounts, as well as credit card accounts, keeps errors from building up and hurting your finances.
By using QuickBooks custom reports or other business intelligence tools, we will provide you with unique insights and precise recommendations for improving your operations, finances, and planning. All too often, bookkeeping services simply tally up the numbers and generate indecipherable columns of numbers. Our advanced reports will help drive your business decisions, improve efficiency, and generate profits.
Our experienced and degreed accountants provide oversight and insights that stand above what is available to the average business. Unfortunately, most businesses cannot afford to keep an accomplished CFO on their payroll. But, most businesses do not need complete CFO services. They need targeted insights and advice which we can provide. Our Bookkeeping + Profit First service provides you with the high level of accounting expertise needed at critical times and comes with a financial video review and monthly call to deal with specific issues.
Our mission is to help small businesses maximize their profits, and we believe the Profit First system aligns with our mission and values. As Profit First Professionals, we incorporate innovation as an essential part of a business’ finances and give you step-by-step instructions on using the system.
It’s important to start using Profit First the right way, so we walk you through every step and show you how to find areas for improvement. There are vital parts and sometimes confusing aspects to the system, but we will help you understand every aspect.
The Profit First system will help you create a sustainable profit, ultimately leading to future success.
Profit First Professionals are an association of financial professionals, including bookkeepers, coaches, and accountants that focus on business profitability. Profit First is a profit-determining formula that accounts for human behaviors. The formula takes various expenditures into account and helps you identify areas where you could spend less money.
Profit First also does all the bookkeeping for you. Perhaps the most challenging financial aspect of owning a business is managing and interpreting various forms, including balance sheets, cash flows, and income statements. Profit First helps you interpret and analyze every number by splitting them into several different accounts:
Looking at each number separately helps you better understand where your money is coming from and where it’s going, ultimately leading to better business decisions. And you won’t be alone in analyzing these statements, either. We will help you understand what each line means and successfully understand the Profit First system.
When you begin to use the Profit First system we will walk you through all of the steps from first to last. This will start with an overview of what to expect and how to use the system.
You will allocate monies to profit, owner’s pay, taxes, and for other purposes each pay cycle. We will show you how to set up separate bank accounts in order to segregate these funds from each other and from your general account. A key feature of Profit First is how allocation percentages are analyzed and updated on a quarterly basis. We will show you how to do this and oversee the process. As part of this process, we will furnish you with a bi-weekly distribution report.
By generating insightful reports we will show you the areas where your business operations can be improved, costs can be reduced, and cash flow can be optimized.
When we do your bookkeeping we will also work with you on a tax strategy.This will include calculating your estimated quarterly payments and putting aside money for these payments as you go using the Profit First approach. We will keep you compliant with the IRS for your quarterly payments as well.
But, the first thing that we will do is review your business and your tax history so that we can identify any and all potential tax savings. Then we will help you implement the changes needed to take advantage of those savings each and every year.
If you’re over-paying taxes, there’s a potential you can save money. We’ll help you identify the correct quarterly payments and find even more ways for you to save on taxes.
The first benefit of outsourcing your bookkeeping to Exigo Business Solutions is that you will have a clear picture of how you are spending your money. This will range from money that you pay for products and services from outside of your business to what you are paying to run your business operations. You will better see where your profits are coming from and be able to cut out previously-hidden expenses.
The next benefit is that our advanced reports and experienced accountants will provide you with insights you did not previously have. You will be able to make impactful and permanent changes which will, in turn, drive your business to greater and lasting success.
The benefit of using Profit First in your business starts with seeing a profit each and every pay cycle. But, it goes beyond that helping you improve your management of cash flow and your budgeting. These improvements will reduce your business overhead and generate increasing profits over time.
The inherent benefit of Profit First is that it helps you cut expenses that you previously did not know you had.
And, when you have us help you with tax planning and setup, you will be done with “tax surprises” at year end, have all of your quarterly estimates done correctly, and not experience tax season as a yearly nightmare.
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