Author: Bryan Polozola

Outsourcing Your Business’s Controller Services

Posted on by Bryan Polozola

When starting and maintaining a small business it can be difficult to keep up with its financial needs. Accounting is not a job suited for everybody. It is important to make sure a professional is handling your business’s finances to ensure your money is being used accurately and efficiently. Outsourcing a controller to manage your finance needs saves you time and keeps you from unwanted stress.

At NexGen Finance Solutions, located in the Dallas-Fort Worth Metroplex, our controllers have the experience and education to serve you and manage your finances well. They will manage all aspects of the accounting process to ensure accuracy and completeness. This provides you with more time to better use towards other areas of your business and allows you to cut down on costs.

When outsourcing your controller services you do not need to worry about keeping up with staff. If you did not outsource your controller, you would need a plan in place for instances where your staffed controller may be sick or gone on vacation. When you outsource a controller, you do not need to concern yourself with training or hiring staff to take over. We already have a seamless plan in place to ensure your financial needs are still met.

Our controllers work to build policies and procedures specific to your business to allow for financial growth. These policies and procedures are implemented to catch omissions, fraud, and errors. Our controllers will work with all departments within your business to ensure that everyone is aware of the policies and sticks to them. This allows for less complicated reporting.

We are excited to share our professional and experienced controllers with you as we assist you with your financial needs. Contact Bryan Polozola today by calling 214-629-0100 or email him at bryan@nexgenfinance.com to receive more information about our controller services.

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Ways to Save for Small Business Owners

Posted on by Bryan Polozola

Starting and running a small business takes a lot of time and resources. Saving money is important, but it is often difficult to find ways to cut costs. Here are a few ways to practically cut costs to ensure you are maximizing your resources:

 

Go Digital

The root of going digital is using less paper. This cuts down the cost of purchasing paper, makes your business more sustainable, and you have fewer documents that may get lost.  Another benefit to going digital is the ease of sharing information. You can offer electronic invoices for customers, and this will help to lower postage costs.

 

Discounts

Suppliers may offer a discount if you meet certain requirements. For example, you may be able to receive a discount if you purchase a certain quantity. Be sure to ask every supplier you work with if they have discounts and what you can do to qualify for them. Many companies can bundle services, giving you a discount and saving your business money. You may be able to bundle your internet, phone service, fax, and/or web server.

 

Get Event Sponsors

When hosting an event, the costs can add up quickly. One way to lower the amount of money you will have to spend is to get sponsors. Companies will be interested in sponsoring because they are able to advertise at the event. This will give you access to more resources to make sure your event is top-notch.

 

Outsource an Accounting Manager

Outsourcing an accounting manager can really help to lower costs. You will not need to have an accountant on payroll, saving you money and time, and your accounting manager will catch money you may have missed, coming both in and out. By outsourcing an accounting manager, you know you hiring a professional who will handle your finances meticulously.

 

At NexGen Finance Solutions, located in the Dallas-Fort Worth Metroplex, we are waiting to assist you with your small business finance needs. If you are considering outsourcing your accounting and finance needs, contact Bryan Polozola by calling 214-629-0100 or email him at bryan@nexgenfinance.com.

 

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Expenses to Consider When Starting a Small Business

Posted on by Bryan Polozola

At NexGen Finance Solutions, a recurring accounting support and finance analysis company in the Dallas-Fort Worth Metroplex, we are committed to assisting you with your small business finance needs. One of the largest financial commitments when starting a small business are the startup expenses. Consider the following expenses when getting started:

 

Capital Expenses

A one-time cost of buying an asset is called a capital expense. When starting a business these expenses can sneak up on you. It is important to thoroughly think through everything you will need to start. Some of those expenses may include vehicles, equipment, business cards, website development costs, security deposits, property, inventory, a sign for your building or office to advertise, brochures, and/or office supplies.

Capital expenses usually do not qualify for a tax deduction, but you will be able to write off the expense’s depreciation.

 

One-Time Expenses

One-time expenses include legal fees, permits, licenses, state incorporation fees, etc. These are expenses you will have to make to legally start your business. Some licenses, permits, or fees will require you to renew them annually, making these yearly expenses instead. It is important to keep track of each expense to know if they will need to be renewed. This will allow you to properly budget each expense so you will not be caught off guard when renewal time comes.

 

Fixed Expenses

For fixed expenses you will need to think through what costs you have each month. Usually you will need to pay rent or mortgage, utilities, administrative costs, insurance, and/or payroll (if you have salaried employees). These expenses do not change month to month, making them easier to budget for.

 

Variable Expenses

 Variable expenses change month to month. These expenses may include shipping or packaging costs, costs of a direct sale of a service or product, inventory, travel, and/or payroll (if you have hourly employees). These expenses are more difficult to budget for. Initially, estimate how much you think you will spend on each item and give yourself a “fixed” number to stay under. Once you get started doing business, look back over the previous months to see how much you are actually spending on each item. This will help you adequately budget for each expense.

 

Many of one-time expenses, fixed expenses, and variable expenses are tax deductible up to $5,000 in your business’s first year.

 

Keeping up with your many expenses and finance needs can be a grueling and unpleasant process, but they shouldn’t be. Consider outsourcing your accounting and finance needs. Contact Bryan Polozola at NexGen Finance Solutions today by calling 214-629-0100 or email him at bryan@nexgenfinance.com.

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NexGen Finance Solutions Honored with Best of Plano Award

Posted on by Bryan Polozola

NexGen Finance Solutions is proud and honored to announce that we have been awarded the 2016 Best of Plano Award in the Accounting and Finance division by the Plano Award Program. This is the second time this year that NexGen Finance has been honored with an award, winning the Best Businesses of Dallas Award earlier this year!

 

About the Best of Plano Award

 

The Best of Plano award is given to companies that exhibit industry-leading expertise in their field, proving to be a valuable asset to the Plano community and improving quality of life for Plano residents. The Best of Plano Award is set apart from other similar awards in that it centers around quality of service, not quantity. The Plano Award Program strives to honor businesses that are excelling in creating a lasting impact on the Plano community by meeting long term goals, implementing best practices, and serving the community and their clients. Data is collected both internally by the Plano Award Program and then externally as provided by third parties in order to determine the winners in each category.

 

Thank You for Your Loyal Support

 

At NexGen Finance Solutions, we recognize that our success is only a reflection of the clients we serve. We thank you for trusting your outsourced accounting and finance needs to our company and letting us prove our expertise and loyalty to you and the Plano community.

 

If you are still considering outsourcing your Plano accounting and finance needs, contact Bryan Polozola at NexGen Finance Solutions today by calling 214-629-0100 or email him at bryan@nexgenfinance.com. We look forward to serving you and showing you why we truly are the best of Plano when it comes to addressing your accounting and financial needs. NexGen Finance Solutions proudly serves the greater Plano community, including Allen, McKinney, Dallas, Frisco, and other surrounding communities.

Are you ready to meet YOUR new finance team?!

 

4 Small Business Tasks to Consider Outsourcing Today

Posted on by Bryan Polozola

Running a small business or startup requires you to wear many hats, but what do you do when wearing all the hats gets burdensome and some start falling off? As your business reaches certain pivotal milestones, it may become necessary to begin outsourcing various tasks so that you can continue to focus on growing the business:

 

Based on your unique strengths and weaknesses, consider outsourcing these 4 tasks and watch your business thrive:

 

  1. Human Resources

 

If your business is in its infancy, outsourcing your human resource tasks is likely overkill at this point. However, as your business grows, you may want someone to handle the responsibility of hiring, firing, scheduling, payroll, etc. Outsourced professionals are going to be unbiased in their decisions; therefore, hiring better employees and making better decisions for the company’s bottom line.

 

  1. Marketing

 

The key to growing your business is getting the word out about the products and services you offer, and as a business owner, there is only so much you can do on your own. In the fast-paced, technological age we live in, there are many marketing solutions that an outsourced marketing and advertising company can use to draw in new clientele. Let them establish an online presence, create a brand identify for your company, and implement an overarching marketing strategy and watch your business take flight.

 

  1. Customer Service

 

As the old adage goes, “it is easier to keep an existing client than it is to win a new one.” Many small businesses overlook the value of a strong customer service presence. Hiring an outsourced customer service team to handle calls will likely result in higher customer satisfaction since these employees are well equipped to handle issues, already have the infrastructure to handle customer service calls with ease, and will receive an immediate response from a trusted team.

 

  1. Accounting

 

This is where NexGen Finance Solutions in Dallas, Texas comes into play. Outsourcing your accounting and finance needs is one of the best decisions you can make for your small business. A team of expertly trained bookkeepers, accountants, and finance consultants ensures your books are handled with the utmost care, taxes are prepared properly, revenue streams are being maximized, and costs are being streamlined.

 

Is it time to take the leap and outsource your Dallas accounting needs? Call Bryan Polozola at NexGen Finance Solutions at 214-629-0100 today. NexGen Finance Solutions is a leading outsourced accounting firm in Dallas, partnering with you to achieve your business goals.

 

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Advice from a Professional Controller: Small Business Taxes

Posted on by Bryan Polozola

As your small business begins to take shape and employees are hired, you immediately need to start considering employment taxes. Many business owners are incredible entrepreneurs, experts at growing and maintaining a thriving business, but many feel ill-equipped to handle small business taxes on their own.

 

NexGen Finance Solutions can help wade through the waters of small business taxes and employment taxes. Here are a few of the basics that should be withdrawn each month:

 

  • Federal Income Tax: Use the IRS withholding charts to determine what the appropriate amount of withholdings is each month. This figure is based on each employee’s annual income and is pulled from the employee’s paycheck each pay period.
  • Federal Unemployment Tax: This tax is taken into account by the employer at the rate of 6% of the first $7,000 of each employee’s wages. This may also be due at the state level, depending on what state your business resides in.
  • Social Security and Medicare Taxes: Social Security taxes and Medicare taxes are a burden shared evenly between the employer and the employee. Roughly half of the taxes come from the employee; half from the employer. More information can be found here for exact amounts due per employee for your small business taxes.
  • State Income Tax: These taxes are withdrawn in the same fashion as the Federal income taxes, depending on whether or not your state requires these to be withheld. State income tax is to be reported in the state of employment, not the state of residence.
  • Worker’s Compensation: While not a tax per se, workers compensation is also paid based on payroll. Guidelines for worker’s compensation vary from state to state, but the premise is the same across the board. As a business owner, you must either purchase a private insurance policy, enroll in a state-sponsored plan, or show that your business is stable and has the ability to be self-insured.

small bus

If you are confused about employee tax withholdings for your small business, give Bryan Polozola at NexGen Finance Solutions a call today at 214-629-0100 or email us at bryan@nexgenfinance.com. As a professional controller, I can guide you through the process and provide the Dallas outsourced accounting functions your small business needs.

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Cash vs. Accrual: Determine the Best Method for Your Small Business

Posted on by Bryan Polozola

As a small business owner in Dallas, you know that there is no one-size-fits-all approach to accounting that works 100% of the time. Depending on the size of your business, you can choose whether a cash or accrual system is better for you, and whether or not you want to adopt GAAP.

 

But how do you determine which one fits your business model? Here are 3 guidelines to consider when determining which practice is best for you:

 

  1. Consider Your Revenue Threshold

 

It may not be up to you – but rather the IRS – to determine which method is right for your business. Using the Test of Gross Receipts, the IRS determines if your income and assets are under the appropriate threshold to proceed with cash method accounting. In order to use the cash method, S Corporation business owners and sole proprietors must have less than $5 million in average annual sales in a 3-year period. Small businesses such as C Corporations and S Corporations must have less than $10 million in average annual sales in a 3-year period.

 

  1. With Growth Comes Accountability

 

As your business grows and outside investors become involved, your financial accountability grows as well. If your business has passed any of these milestones, then you are obligated to use accrual method accounting with GAAP:

  • Third-party audits
  • Investor board meetings
  • Series A funding
  • Initial public offering

 

  1. Evaluate Your Goals

 

While the cash method is a much simpler model for a budding small business, remember that it has its limitations. Because everything is actualized upon receipt, it is very hard to accurately forecast revenue and spending patterns moving forward. With the accrual method, projections lead to more sound budgeting, which leads to better spending choices and more opportunities to take advantage of business opportunities.

 

Need help evaluating which method to use for your Dallas small business accounting? NexGen Finance Solutions is a leading outsourced accounting firm in Dallas with years of expertise in all areas of finance. Give Bryan Polozola and his team a call today at 214-629-0100 or email bryan@nexgenfinance.com.

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5 Common Accounting Mistakes Among Small Businesses

Posted on by Bryan Polozola

When your business is just getting itself up off the ground and beginning to soar, the last thing your small business needs is finance and accounting issues. In order to maximize growth, all aspects of your accounting process must be fully under control. Here are 5 common accounting mistakes small businesses need to avoid:

 

  1. Handling the books yourself.

 

As the small business owner, it is easy to want to be in all of the details – especially at the beginning. However, handing all of the accounting needs yourself is rarely a good idea. Your time is best served growing and shepherding the business, not crunching numbers all day.

 

  1. Hiring family to fulfill your accounting needs

 

Many small business owners fall into this trap. As the company begins to grow, it seems to make the most sense to have your spouse or a relative handle the books. After all, it is cost effective….or is it? While it may seem cheaper in the short term, in the long run you may be missing opportunities to more strategically handle your finances because your family member is under qualified. Not to mention, mixing family and business can often lead to unnecessary strife.

 

  1. Understaffing

 

When it comes to small business accounting and finance needs, do not assume that a junior staffer can do it all. Do not skimp. Hire the necessary senior accountant, bookkeeper, etc. to get the job done well and helping your business flourish.

 

  1. Over-investing in software solutions

 

Before purchasing accounting software for your small business, consider what accounting tasks your business actually does. Many software solutions are loaded with functionality, but if they do not apply to your business, then you have overspent.

 

  1. Mixing business and personal accounts

 

Remember to keep your personal and business expenses separated. Keeping details logs on all of your expenses in both categories will set you up for success – especially if the IRS comes knocking.

 

Feeling overwhelmed? You can avoid all of these accounting mistakes by giving NexGen Finance Solutions a call today at 214-629-0100 or email us at bryan@nexgenfinance.com. Our team has years of expertise in outsourced accounting in Dallas and will have your finances in order in no time.

 

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Why Your Company Does NOT Need a CFO

Posted on by Bryan Polozola
In today’s world, outsourced or part time CFOs are all the rage.  Believe me, I too offer that service.  We CFOs sell you on cost reduction, efficiency, CPA services, Big 4 background, strategic planning, etc.
 
Here is what we do not tell you.
 
Most outsourced CFOs are Controllers at best.  Most of us have no desire to enter debits and credits or create spreadsheets. Most of us have no experience in companies with revenue over $150 million, have never worked for a public company, and our experience is generally limited to a few industries. Frankly, unless your revenue is over $150 million, a CFO – whether part-time or full-time – is not necessary.
 
So what IS the answer?
 
My recommendation is to employ the three team member approach to handle all of your accounting and finance needs:
 
·     Accounts Receivable: Hire one junior person with two years of experience dealing with customers and QuickBooks Enterprise. This person will need to handle customer calls, schedule jobs, and invoice clients.  You should be able to pay this person anywhere from $15 to $25 an hour.  Annual cost is anywhere from $31,200 to $52,000.
·     Accounts Payable: Hire one person a bit more senior, with three to five years of experience dealing with all things liabilities and Quick Books Enterprise.  This person will need to handle accounts payable and vendor issues, all other liabilities, and serve as your accounts receivable back up.  You should be able to pay this person anywhere from $20 to $30 an hour.  Annual cost is $41,600 to $62,400.
·     Outsourced Controller: Hire a CPA with auditing AND industry AND strong Excel experience. As an ex-auditor myself, I can tell you that auditors learn the big picture, completeness, and accuracy skills that are not always learned doing everyday accounting functions. This person will manage the team, review your general ledger for accuracy, reconcile bank/credit cards/loan accounts, process and manage both payroll and sales taxes, manage inventory and fixed assets, complete your monthly financials, complete necessary management reports (i.e. cash flash, sales profitability reports, etc.) and provide details to variances in reporting. You should be able to hire a qualified Controller anywhere between $80,000 to $140,000.
 
The Bottom Line
 
Most often, a CFO is not up to speed on your business and is too far removed from the day-to-day operations.  With a strong accounting team in place, your Controller will be able to provide you with all the information you need as the owner of your kingdom to make educated decisions and to grow the bottom line.  Because again, no one knows your business like you do.
 
NexGen provides outsourced accounting support and finance analysis in Dallas/Fort Worth.  Our clients range from the start-up stage to mid-sized to seasoned businesses. NexGen professionals can act as your entire accounting team, or let us work in tandem with your accounting and finance professionals. Either way, we work with you to grow your company and help you make sound business decisions.
Are you ready to meet your new finance team?  Contact Bryan Polozola with NexGen Finance Solutions (www.nexgenfinance.com) at 214.629.0100 or bryan@nexgenfinance.com.
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Converting Personal Expenses to Business Expenses

Posted on by Bryan Polozola

As a Dallas small business owner, you are constantly shelling out money, and the lines between personal expenses and business expenses are often blurred. Finding personal expenses that convert to business expenses is the key to maximizing tax savings and tax write-offs.

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What does it mean to convert personal expenses to business expenses?

The IRS allows small business owners to file deductions for any personal expenses that are incurred in the interest of generating income (Internal Revenue Code Section 62). These items can vary from business owner to business owner, but keeping close tabs on your expenses and how you are spending money will help you determine what those costs are for you.

 

Think “Above the Line”

Every tax return is determined based on a simple number: your Adjusted Gross Income. Your goal is to assess what personal expenses you have incurred on behalf of your business that can be applied to the Adjusted Gross Income, expenses above and beyond the Adjusted Gross Income line. Every dollar that can be linked to your business is more money back in your pocket.

 

What costs are covered?

There is no hard and fast rule for what is covered across the board for each small business owner. Examples of covered expenses could include home office expenses, technology costs, client entertainment, travel expenses, etc. Work closely with your Dallas accounting team to determine what is eligible for deduction.

 

Make Changes Now; Reap Tax Benefits

It is not too late to adjust the way you spend for 2016 in order to reap greater tax benefits next year. Consider each purchase and whether or not it can apply to your business as well. Keep close records of each and every purchase, take notes on travel and client entertainment, and record any information that could be useful for an expense you plan to file as a business deduction. These records will prove invaluable should an audit ever take place.

 

Need help maximizing tax savings for your small business? Outsource your accounting needs to NexGen Finance Solutions in Dallas, Texas. Bryan Polozola and his team are experts in finance and accounting, ensuring you will receive the care your company demands. Call us today at 214-629-0100 or email bryan@nexgenfinance.com.