Do You Have An Interest In Exporting?

Small businesses looking to increase sales and profit, reduce dependence on the domestic market and stabilize seasonal fluctuations should consider exporting. Consider these facts:

• Nearly 96 percent of consumers live outside the U.S.
• Two-thirds of the world’s purchasing power is in foreign countries.

Today, as noted by Export.gov, it’s easier than ever for a company like yours, regardless of size, to sell goods and services across the globe. Small and medium-sized companies in the United States are exporting more than ever before.

In 2013, for example, more than 300,000 small and medium-sized U.S. companies exported to at least one international market—nearly 28 percent more than in 2005. The value of goods and services exports was an impressive $2.28 trillion, nearly a 25 percent increase since 2010. And 2014 topped the previous year, with exports valued at $2.34 trillion.

The following list is of sales channels are available to global trading partners active in the export process,

Sales channels can include:

• Direct to end-user
• Distributors in country
• Supplier to the U.S. government in a foreign country
• Your e-commerce website
• A third-party e-commerce platform where you handle fulfillment
• A third-party e-commerce where they handle fulfillment
• Supplier to a large U.S. company with international sale
• Franchise your business.

You are not limited to one of these channels. As it is also noted in the Export.gov study, today’s global trading system is ideal for the smaller company employing more than one marketing and sales channel to sell into multiple overseas markets. But most U.S. exporters currently sell to one country market—Canada, for example. And the smaller the company, the less likely it is to export to more than one country. For example, 60 percent of all exporters with fewer than 19 employees sold to one country market in 2005.

Tips For Potential And New Exporters

In a recent report from Shipping Solutions, these seven tips will provide helpful guidance for businesses new to exporting:

Tip #1 – Make a Commitment

Businesses new to exporting can expect to face numerous challenges such as redesigning packaging or establishing a new distribution channel.

Tip #2 – Do Your Research

To be successful overseas, do some research on potential markets. Which countries have the lowest duties? Write an international marketing plan, which addresses a range of potential issues such as unique labeling requirements.

Tip #3 – Focus Your Efforts

For example, first-time exporters in Minnesota often target Canada as the first international market to enter. The proximity of Canada and the benefits of the reduced North American Free Trade Agreement (NAFTA) tariffs are advantageous for new Minnesota exporters ramping up on their export knowledge.

Tip #4 – Set Aside Resources

Entering new markets requires resources—primarily time and money. Companies in the best position to export already have an established track record of domestic growth and a steady revenue stream. For many companies, gearing up a business to export means having to reallocate resources from domestic business opportunities.

Tip #5 – Increase Your Company’s Export Knowledge

Look for opportunities to develop and expand the export knowledge of your staff. Work toward credentials to ensure you develop a baseline of skills. For exporting companies, encourage staff to attain the Certified Global Business Professional credential.  Read Complete Post here:  Tax Services Arizona

Common Bookkeeping Mistakes

Before getting into a discussion of common bookkeeping mistakes, it is worthwhile to address the importance of sound bookkeeping in general.

The importance of sound bookkeeping is frequently lost and ignored by management. It is apparent that the main reason management tends to ignore the bookkeeping function is because it is focused on the “big picture.” What management fails to recognize is that there is no “big picture” to look at without bookkeeping first doing its thing in the details.

Bookkeeping

Bookkeeping can help keep your business organized and able to yield a profit. Many small businesses fail due to poor financial management. By applying sound financial principles, you may be able to prevent this fate from befalling your business.

The following are some of the benefits that are generated by an accurate bookkeeping environment, as noted by QB Express:

1.   Improved financial analysis and management

Cash flow management is something that your business should start focusing on right away. Once your invoices are delayed, there will be zero follow-ups on customer payments. With accurate bookkeeping, you can systematize your follow-ups and be invoicing, while making on-time payments to suppliers.

2.   Fulfil your tax obligations on time 

Bookkeeping can help you keep a track on all the information required to accomplish your tax obligations. When the time for tax comes, you will no longer need to rush everywhere to hunt for your bills or try to remember your expenses. An organized Balance Sheet, Profit & Loss, and Cash Flow also make filing your Tax Returns a lot easier. Your tax advisor can also finally give you some sound tax advice instead correcting incorrect entries in your financial statements.

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3.   Enjoy easy reporting to your investors

With regular and accurate bookkeeping, you will no longer need to worry about reporting to your investors and sharing the financial status of your company. From graphs to charts and the lists of data, you can easily present everything to your investor right from your accounting books.

4.   Make informed business plans

With the Balance Sheet and Profit & Loss statements, you can check if your company is on the right track financially. Based on your financial status, you can make informed and effective business plans.

5.   Keep a proper record, as required by the Law 

With bookkeeping, you can keep a record of all your financial dealings and keep everything organized right from your big to small invoices.

Common Bookkeeping Mistakes

The foregoing section above focused on a discussion of the benefits that can flow out of a sound bookkeeping system. Such a system shouldn’t be taken for granted, however. Frequently, bookkeeping mistakes can creep in and weaken the bookkeeping infrastructure as well as the systems in the organization that relies on the bookkeeping system.

The following is a list of common bookkeeping mistakes that bookkeepers and others should always be on the lookout for.

1.   Skipping an Accounting System

As Business2Community notes, your business may be so small that you decide to save money by not using software that is specifically designed for accounting.

However, even if you use spreadsheets and a well-organized file system to keep track of where your money goes, you are missing out. As Doug Boswell, an accounting expert, points out: “…before having your taxes done, the tax preparer needs to cobble together some sort of makeshift system that will allow your tax return to be prepared, but it almost surely won’t capture all your deductions.”

2.   Not Double Checking Everything

Not Double Checking Everything

Another good point from Business2Community: adopt the habit of double-checking everything and be consistent about it. As their report notes, a mistyped number, a lost receipt, and other human errors can result in inconsistent figures. Prevent such problems from piling up by reconciling your records with your bank account statements every month. Keeping track of your businesses money will be easier if you try to use cash as little as possible. Credit and debit transactions will show up on your statements so you know where every penny goes.

3.   Jumbled Invoices

Some small businesses miss out on money because they have an inefficient system for filing invoices. Number your invoices and keep them in order so it is easier for you to find out which invoices have been paid and which still have outstanding balances.For Accounting services and Financila plan read here  Accounting Services Arizona

4.   Not reconciling your accounts

As this analysis of sound bookkeeping observes, after the end of each month your bank, credit cards and even merchants like PayPal will release statements showing your beginning and ending balances as well as all of the transactions that occurred in that month. Take those statements and reconcile your accounts in your bookkeeping software. Not reconciling your accounts each month can lead to errors that copy over month after month.

5.   Not tracking Mileage

Business2Community

Remember: you can be reimbursed for the miles that you drive for your business. The IRS sets a mileage rate for businesses each year that covers your gas, maintenance to your car and general wear. Use an app like MileIQ that will track all of your drives and then you can categorize them as the business or personal. At the end of every month, they’ll send you a report showing how many business miles you drove and what that amounts to. You can take that amount and reimburse yourself from your business account while categorizing it as a business expense. Not doing this prohibits you from claiming this eligible deduction on your taxes.

In addition to the previously noted mistakes, the following links point to additional common bookkeeping mistakes.

Believing you have to do your bookkeeping yourself

Leaving bookkeeping to the last minute

Not using bookkeeping software properly

Using the wrong accounting method

Not separating business and personal bank accounts and transactions

Inadequate filing systems (for bank statements, invoices, receipts)

Lack of documentation or systems regarding cash

In conclusion, it’s fair to say that the fewer bookkeeping mistakes there are in your organization the smoother your organization will operate. It is human nature to seek short cuts and avoid pain points, but this is a crucial area where you can’t afford that approach: you must take a long way and endure the strain of the process, otherwise much bigger pain points could arise down the road.

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