Tag Archives: saving money

5 Practical Tips You Can Implement To Raise The Liquidity Ratio Of Your Business

Having a good liquidity ratio is exceptionally important for all business no matter whether they are big or small. In layman terms, liquidity indicates the company’s self sufficiency and whether it can make timely payments of bills and other expenditures incurred all round the year. As the old catch phrase goes, cash is truly kind and here are 5 ways you can improve the liquidity ratio of your business without making drastic changes in the way you run your business.

Roll Your Extra Cash into Interest Accounts

There will be times when you have a lot of extra cash on hand and there are not many expenses that you would have to pay for except for some of the fixed costs. This situation is favorable for your business because you can simply move that extra amount to an interest bearing account to make surefire profit from it without making a risky investment.

 Whenever you need the cash, you can move it into the current account as and when you need it. You will be amazed at how much extra income you have generated by just making this one smart move.

Review Overhead Costs From Time To Time

Another method you can adopt to improve the liquidity ratio of your business is to check the cost of your overheads from time to time on a regular basis. By doing so, you will actually be able to find a way to reduce the costs which will have a positive impact on the liquidity ratio inevitably. Some of the overhead expenditures that you can cut down on are advertising, professional fees, rent and indirect labor.

Say No to Unproductive Assets

One of the major reasons why some businesses tend to have bad liquidity ratios despite of having everything else in check is because they store unnecessary unproductive assets that the business is better off without. Remember that a smart businessman is one who spends money on assets that play a vital role in revenue generation for example, the office building, cars, trucks and equipment to name a few. If your business is still holding onto assets that are of no use anymore, it’s time to chuck them out and make some extra cash on the side.

Keep a Tab on the Account Receivables

In order to have an optimal liquidity ratio, the business owner must pay attention to all the aspects of running a business. One such aspect that needs to be monitored closely is the account receivables. You must make sure that timely payments are being made by all your clients and no bad debt is recorded.

Go Easy On the Drawings

In a sole proprietor business, the profit made by the businessman is ultimately his income and he may withdraw it at any time for his personal use. But in order to maintain a good liquidity ratio, it is advised that you go easy on the drawings for excessive amount of withdrawals can portray a negative impact on the liquidity ratio of your business unnecessarily. So be on the lookout when you withdraw amounts for your personal use to avoid cash drains.

If you have trouble with accounting and bookkeeping, then free yourself from your accounting responsibilities by hiring CFAs and CPAs from SK Financial CPA at highly affordable rates.

 

 

Ten steps on how we save you money

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Ten steps on how we save you money:

1. We save you money by automating your accounting department. By doing so, you save on direct/indirect payroll, overhead costs as well as technology costs. Your data is saved on our dedicated secure server in an SAS70 certified data center. You will have absolutely no computer or software costs. We also eliminate your hiring and training headaches. Our skilled, experienced professionals handle your daily accounting and bookkeeping. We will help you develop standardized and consistent policies and procedures to streamline the accounting process for you.

2. We save you money by implementing numerous tax strategies. You save on taxes with our proactive accounting and tax advice and guidance. We have more than 100 tax planning strategies, which we will gradually implement as we monitor the progress of your business. You will be amazed to see how the implementation of just one, sound tax strategy can help you save way more money than our fees for the entire year.

3. We save you money by not allowing you to pay any penalties to the IRS or state authorities. You are guaranteed never to pay any penalties due to our strict adherence to deadlines. We will handle all your required filings in the most efficient and timely manner. If we don’t file any forms or make a tax deposit on time, then we will pay any tax penalties on your behalf.

4. We save you money by valuing your time. Your phone calls and emails will be returned within 24 hours. We will finish any tasks requested by you within 48 hours. We are easily accessible through phone, email, chat, Skype and other social media. We will complete your bookkeeping by the end of every month, or you will not be charged for that month.

5. We save you money with our audit protection plan. If you get audited or receive a notice from the IRS, all you have to do is just forward it to us, and we will take care of the rest. We will represent you and correspond with the IRS on your behalf. You will not have to pay any fees for our additional work.

6. You save money by automating your payroll and HR process. We process your payroll online with direct deposit, make tax payments electronically, prepare quarterly payroll tax returns, 1099s and sales tax returns and submit them electronically. We will also automate your time sheets, vacation benefits, expense reimbursements and HR functions through our Human Resource Information System (HRIS).

7. You save money by having a CPA firm by your side throughout the year. We provide unlimited consultation regarding accounting, tax, marketing and business matters throughout the year.  You also have access to our resource library and your own online portal.

8. You save money with our marketing consultation. We meet with hundreds of entrepreneurs throughout the year, and will share with you the many outstanding marketing strategies that are being implemented by other successful businesses.

9.We save you money by automating your A/P and A/R departments. All you have to do is to scan, fax, or email your paperwork to us, your capable accountants, and your hassles are no more. For A/P (bills) we keep track of all your due dates, set an approval process and automatically pay on the scheduled date. For A/R (invoices), we email or post your invoices, so you have no more hassle with printing, postage and mailing.

10. Your savings will be significantly higher with our accounting packages than with any other accounting firm. You will know what your fees will be well in advance, so there will be no unpleasant surprises. On average, our fees are far less than our competitors’. So you receive superior quality of work for a low, fixed monthly fee.