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The Best Bookkeeping Software for Small Businesses

When it comes to small businesses, each person likely has multiple roles and responsibilities. The good thing about this modern age is that a lot of things have gone digital, making business tasks easier and more convenient. Bookkeeping software allows you to digitally keep track of your finances and most also provide accounting features. Here are some of the best bookkeeping software for small businesses!

FreshBooks

This bookkeeping software is great for those who send out repeated invoices or need a time tracking feature. Freshbooks can easily be integrated with other business applications so that they can all be accessed from one place.

You are even able to see the location where your customers opened their invoices so that there is documented proof that it was received. Freshbooks has a mobile app that allows you to keep track of your bookkeeping information no matter where you are.

Sage 50cloud

Better for small to medium sized businesses, Sage 50cloud can send invoices, track in and outgoing transactions, and even calculate what you will owe at tax season.

These features are great for tax planning and maintaining your budget. With this bookkeeping software, you are unable to track time and it does not have collaboration tools.

Xero

For those that are always on the go, Xero is a great bookkeeping software. You can customize and send invoices, track your inventory, and create purchase orders all from your mobile device.

This convenient software can send financial reports to your device and easily connects to your bank account. One thing Xero doesn’t offer is live support, which can be inconvenient when troubleshooting.

Intuit QuickBooks

The great advantage that Intuit QuickBooks has is its ability to integrate with PayPal, Shopify, and Square, making it so much easier to track payments.

There are several different plans to choose from, but they all allow you to track your business income and expenses, send invoices, receive payments, run financial reports, and organize receipts. If you opt for a more advanced package, you can track time, inventory, and run payroll.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

4 Important Tax Planning Concepts

Tax time can be a stressful time of year for everyone, but everything becomes easier when there is a plan in place. Tax planning is a great tool to use for things like business, wills, retirement, and properties.

In short, it is a way to help figure out just how much money you will be spending on taxes per year, while figuring out the best ways to minimize your tax liability.

Here are four concepts you should know to make tax planning easier.

tax planning

1.  Tax Bracket

The first thing you need to understand when tax planning is your tax bracket. This is important because it gives you an idea of your current standing, which is vital before you can plan for the future.

The U.S follows a progressive tax system, meaning that the higher your income, the more money you pay in taxes.

There are seven general tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%), but often times, you won’t pay that percentage on your entire income.

This is because tax deductions are taken into consideration and the government also divides your taxable income into segments before applying taxes.

2. Tax Deductions vs. Tax Credits

Both tax credits and deductions can reduce your tax bill, but they do so in different ways. Tax Deductions are expenses that you have that can be subtracted from your taxable income. Tax Credits are more beneficial, giving you a dollar-for-dollar reduction.

3. Standard Deduction vs. Itemizing

  1. Standard Deduction: A lot of taxpayers choose to utilize standard deduction because it’s a lot faster. A standard deduction is a flat rate, no questions asked deduction. The government sets an amount of the standard deduction each year and the one that you qualify for depends on your filing status (single, married, head of household)
  2. Itemize: This is a longer process, but typically ends up in more deductions than if standard is used. Itemizing means you take your tax deductions one by one. PL Consulting can help you determine exactly which deductions you qualify for and if it’s worth itemizing over using standard deduction.

4. Tax Records

A crucial part of tax planning is keeping all records of tax returns and documents. It can take the IRS up to three years to decide whether or not to audit your return, so you want to hold onto your records for at least that long.

If you’ve under reported your income by more than 25%, you want to keep your records for at least six years. If you’ve ever skipped a tax return, keep your files indefinitely.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

Bookkeeper vs. Accountant: Which One do You Need for Your Business?


One of the most important aspects of any business is finances. Without proper money management, a business can’t be successful. It is always an option to handle the financial aspect of your business on your own, however it can be a very complex and time consuming task.


There are several different types of financial professions that are designed to help your business prosper. Often times, people often consider bookkeeping and accounting one profession, however they are different and both are vital to your business success.


Here is the difference between a bookkeeper and an accountant so that you know the role each one plays for your business.

Technology’s Influence

With the new age of technology, the thin line between bookkeeping and accounting is disappearing slowly. There is now a variety of bookkeeping and accounting software that makes these tasks easier for professionals.


Majority of bookkeeping software includes financial statements and analysis, which further confuses the definition of the two professions.


A lot of financial companies are transitioning to using digital software and resources to complete these tasks, making them more efficient and creating an ease of access to all financial documents.

Although these two professions are starting to merge together with technology, there are still key differences that are important to know when running a business.


Bookkeeper

Compared to an accountant, a bookkeeper has a more active role in the day-to-day financial responsibilities of a business.


They take care of the elements that keep the business up and running, which include things like creating invoices, keeping track of billing, running payroll, and creating general ledgers to document all transactions.


The core skill focus of bookkeeping is data entry and coding. They must ensure that all financial data is correct and coded to the right accounts so that financial information is both accurate and easy to access.


Accountant

Though accountants also deal with the ongoing finances of a business, the main difference is that they typically handle the finances that are already finalized and closed out.


Bookkeepers maintain current and active records of financial transactions, while accountants take those records and translate them. They interpret the financial data that the bookkeeper documents, compiling the information into financial reports.


These reports give businesses an idea of their financial progress and current standing. This helps to analyze the growth of a business and gauge any changes that may need to be made for improvement. Accountants also handle the tax portion of a business, providing tax planning and advice.


In short, an accountant and a bookkeeper complement one another in the financial world. They are both equally important to the success of any business.


Bookkeepers maintain an active record of all business transactions, while accountants interpret the records and act as financial advisors for businesses.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.


Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.


To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

 

Four Essential Financial Services PL Consulting Can Offer Your Small Business

Every decision that you make affects your small business financially. Therefore, you need experts, such as PL Consulting to help streamline your business and make financial tasks manageable. Some financial processes are more critical than others. If you’re a startup company, then you may need guidance on what financial aspects will make and break your company. Keep reading to discover the four essential financial services PL Consulting can offer your small business.

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The Top Five Mistakes That Small Businesses Often Make

A trend in the business world is people wanting to work for themselves.

A trend in the business world is people wanting to work for themselves. Owning a successful small business is a part of the American dream.  The sad reality is that a third of small businesses don’t make it. It takes more than talent and a vision to make a small business thrive. You don’t want to become a statistic. Therefore, you want to be aware of any potential mistakes that could cause your company to crash. Keep reading for the five mistakes that small businesses often make.

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Why Your Small Business Needs a Bookkeeper

Bookkeeping is essential for any small business to thrive

Business owners are multi-talented, but they aren’t the masters of all trades. Therefore, it’s essential that a small business has different departments so that employees have a clear role. Some employees are excellent when it comes to sales and others perform well in regards to administrative tasks. But what about the bookkeeping?  Bookkeeping is essential for any small business to thrive. Therefore, you should hire an entrusted individual or top bookkeeping firm like PL Consulting to make life easier for you. It’s a component of a business’ upkeep that you shouldn’t neglect. Keep reading for some for the top reasons why you need a bookkeeper.

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Social Security and Medicare are Set to Deplete, States Annual 2019 Report

Social Security and Medicare are both hot button topics

Did you know that Social Security and Medicare have reported that their systems are becoming insolvent? Social Security and Medicare are both hot button topics. After years of retiring, people undeniably want to live out their retirement years peacefully, knowing that they are financially secure. While Medicare matters for those who need affordable healthcare and disability insurance. Did you also know that by 2034 and 2052,  the Trustees Report Summary projects that the Old-Age and Survivors (OASI) and Disability Insurance (DI) will deplete? Keep reading to learn more details about this annual report and how it affects you.

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Components of Writing the Financial Section of Your Business Plan

There are several aspects to creating a business plan for a startup company such as writing your mission statement, learning how to market your company’s products and services, but writing a financial plan is one of the most critical factors in developing your small business. Without a section narrowing down your financial goals, you won’t win over investors or be able to achieve receiving a loan from the bank. Even if you feel as if your small business is secure financially, a financial plan can guide you on how to run your business. Still, what exactly are the components of a financial plan that you need to be aware of? Keep reading for a guide on significant elements of your business plan.

Without a section narrowing down your financial goals, you won’t win over investors or be able to achieve receiving a loan from the bank

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Reasons Why Women Should Start A Small Business in Maryland, Specifically in Baltimore as Well.

Did you know that women-owned businesses in Maryland are becoming increasingly popular and growing? If you’re a woman thinking about starting your small business in Maryland, you should know that Maryland is officially ranked as #2 in the nation for having the most woman-owned firms in 2018. If you didn’t realize this fact, you’re not alone. If this reason alone is not enough for you to start a small business in Maryland, then keep reading to discover other ideas on why you should make such a financial investment.

Did you know that women-owned businesses in Maryland are becoming increasingly popular and growing?

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Three Trends That are Changing the Finance Industry in 2019

Technological advances are a staple of the 21st century. Not only does technology affect our everyday lives, but it changes the sectors and industries in which we work. When a small business has the proper technological tools, it strengthens the company’s efficiency and helps employees to better service clients. Are you on the up and up? If you’re thinking about potentially owning a small business shortly or already have one to call your own, then you should keep reading about these three trends that are changing the face of finance in 2019.

When a small business has the proper technological tools, it strengthens the company’s efficiency and helps employees to better service clients. Are you on the up and up?

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