How to Create a “Living” Budget For Your Business

Many business budgets begin and end in an outdated spreadsheet or static shared file. Managers are responsible for monitoring and updating budgets regularly, but if they’re not timely about entering transaction data, they’re constantly operating on a budget that’s out of date. Not knowing the current status of your budget leads to overspending, under-strategizing, and missed opportunities for your business. Rather than relying on “dead” data, you can improve your budgeting strategy with “living” budgets.  What exactly is a “living” Read More

Should You Be Worried About the New FICO Score?

FICO has announced a new suite of credit scoring models, Fico Score 10 and 10 T, that could result in credit score drops, especially for consumers whose credit scores are already low. Should you be worried? The short answer is “not yet.” But it is a reminder to monitor your credit scores and look for opportunities to build stronger credit. Doing so will position both consumers and small business owners for opportunities to borrow on better terms. (There are over Read More

Self Employment Income and Taxes

There are many differences between being self-employed and working for someone else. However, the taxes you owe the federal government aren’t one of them.  If you’re self-employed, you’ll still pay the same income tax as people who earn a living in the form of a paycheck or wage paid by an employer. You’ll still owe Social Security and Medicare taxes to boot (possibly at a higher rate), along with potential state income taxes depending on where you live.  As a Read More

In Accounting, Why Do We Debit Expenses and Credit Revenues?

You didn’t go into business to become an accountant, so it’s understandable that you’d have questions like: “are expenses debit or credit?” In short, because expenses cause stockholder equity to decrease, they are an accounting debit. It’s helpful to understand why. Understanding Debits and Credits Let’s start with some basic Accounting 101. We may have moved away from “managing the books” in an actual paper ledger and painstakingly entering each journal entry with a quill pen, but the premises of Read More

Why Do Loan-to-Value Ratios Matter?

Your loan-to-value (LTV) ratio is a comparison of the amount of money you’re borrowing and the value of the asset you’re buying. It can be especially important when buying a home because mortgage lenders often use LTV ratios to help determine who to approve, how much money to lend, and how much interest to charge.  Learn how to calculate your ratios and lower your LTV, which can make it easier and less expensive to borrow money.  The Loan-to-Value Ratio Formula Read More

How To Become Incorporated and Why To Incorporate Your Business

On your small business journey, you will encounter many forks in the road. Choosing the right direction for your company as it matures may seem daunting at times. One of the “forks” you must consider is whether or not to move your business from its default sole proprietorship status to another type of legal entity. Incorporating is the most traveled path for entrepreneurs who want to protect their personal assets, experience tax advantages, and build credibility.  Why Incorporate Your Business?  Read More

Restaurant Financing Options: Explore Your Menu [Infographic]

Owning a restaurant isn’t easy. With sky-high failure rates and ever-increasing competition, it’s a challenge to get your footing in the restaurant industry. Having enough cash on hand, as well as access to the right funding, is key for your success. As a restaurant owner, you have access to many different business financing options. Not all are created equal. Finding the right funding source, at the right time, can save you serious money. Just a note: Before applying for any Read More

10 Small Business Grants & Loans for Veterans

The 18.2 million military veterans in the United States have made remarkable sacrifices in their service and deserve all the appreciation they receive and more. Their time in the military and the skills they’ve developed give them a distinct perspective, which they can use to start amazing businesses. Like any person trying to start their own business, veterans need funding to get things off the ground. Multiple institutions offer small business grants for military veterans. Generally, to qualify for federal Read More

Profitability Ratios: Types of Profitability Ratios and Why they Matter

There are numerous financial metrics you can use to monitor the success of your business. If you’re not currently tracking your company’s profitability ratios, you probably should be.  Read on for a breakeddown of what profitability ratios are and how to calculate them. You’ll also discover why this information matters to your business in the first place.  What Are Profitability Ratios?  Profitability ratios measure a company’s ability to earn a profit relative to its sales revenue, operating costs, balance sheet Read More

SBA Loans for Women: What You Should Know

There’s no such thing as SBA loans for women, as the U.S. Small Business Administration (SBA) makes its loan available to all business owners who qualify. However, there are some excellent resources available to female business owners, and an SBA loan may still be the best fit for your small business. If you’re looking for a way to fund your business growth, here’s everything you need to know about your options. SBA loan options While there aren’t any SBA loans Read More