New Business… Who’s on your Team?

team members

So, you’ve decided to go into business FOR yourself. This doesn’t mean you have to go into business BY yourself! Wouldn’t it be beneficial to have a team of professionals aligned with you before you open the doors or take in your first dollar? Of course it would so today’s “Shabro Moment” will discuss the key contributors you should want on your team…

Your Accountant / CPA – You will need your business properly structured i.e. LLC, S-Corp, Etc… You will need your accounting system set-up such as Quickbooks. Taxes! Yes, you’ll need to minimize your exposure to taxation – so be sure to follow the advice of your CPA. You will want to be sure you commit time each month to review your numbers and make the proper adjustments so you stay on course with all of your financial goals.

Your Banking Partner – You will also need to select a banking partner who offers the array of business checking and other features / functions that are a good fit for your business.  A good bank with commercial options will also offer certain “perks” for your employees. Also be certain they offer commercial loans and lines-of-credit. You will also need to make adjustments over time determined by the number of your transactions and average daily balances.

Your Bookkeeper – Your bookkeeper is also a key member of your team. You’ve heard “the devil is in the details”, well, a good bookkeeper will help you get everything organized and prepared for your accountant to put everything together for you on a monthly basis.

Your Payroll ProviderPayroll and payroll reporting are critical functions of your business. Be certain to have a good system in place that allows your team to clock-in and out electronically and track time off, holidays, etc. You should have full reporting and analysis capabilities. Be sure to watch out for fees that are tied to a percentage of your payroll.

Your Insurance Providers – When it comes to insurance there really are many options available to you so be sure to shop to your specific needs. Do you have a lease with specific limits and coverage requirements? Which type of business liability is the best fit? Do you need errors and omissions? How about EPLI coverage? How are you handlng your worker compensation? Work comp should be “pay-as-you-go”. Are you offering employee health benefits? Do you need “key man” life insurance?

To help you save money on various insurances be sure to have things in place such as “Safety Programs”, “Employee Handbooks”, a “Drug Free Workplace”, “MVR reports” and other programs recommended by your insurance professionals designed to help you provide a safer and better place of employment which will help reduce your costs of insurance.

These are just some of the key players to have on your team. For all of your payroll, bookkeeping and HR needs you can rely on Shabro Alternative Office Solutions to help you get on the right track!

Is a PEO (Professional Employer Organization) a good fit for your business?

stop sign

Is a PEO (Professional Employer Organization) a good fit for your business? Professional Employer Organizations are a good fit if you are in an industry where it is hard for you to obtain Worker’s Compensation Insurance.

You may have had injuries resulting in cancellation or you may be a newer, higher risk business having a hard time getting insurance. So, in either case you almost have no choice until you have about 3 years of clean history (loss runs). A PEO may also be a good fit if your company would like to delegate your HR, Payroll, Benefits Administration, Medical Insurance and Retirement Accounts to the PEO.

Here’s something to consider:
If you are being pitched on the benefits of a “do it all for you” PEO…

Stop and be sure you weigh out every expense line you are being proposed versus having your own payroll program, worker’s compensation coverage and other programs in place. The typical PEO client we consult with is currently over-spending by $400 – $700 monthly due to high administrative fees and inflated worker’s compensation insurance rates.

Most employers who “needed” a PEO have surpassed the time frame required to get out from under their PEO once they have become insurable on their own. Other employers sign on with a PEO because they were sold on the idea of having an all-in-one solution for their HR, Payroll and Worker’s Compensation Insurance needs.

In these situations, the employer gets stuck on “cruise-control” and for every month they don’t reassess their situation they are over-spending, on average, $400 to $700 per month MORE than what is necessary when compared to what we are able to offer them.

ShaBro Alternative Office Solutions has evaluated enough PEO plans to know we can save every single client money on every single payroll cycle.
If you’d like your current PEO plan evaluated feel free to call our office today and schedule a no-charge side-by-side comparison to see what your actual savings could be.

You’re Only as Good as Your Last P&L… Let’s Make 2018 a Banner Year!

profit and loss

Have you ever heard the saying “you’re only as good as your last P&L”?  What it basically means is there are typically 12-13 reporting periods in the business year and your business’ performance must be monitored closely to help ensure you put as many points on the scoreboard (profitability) as you possibly can before the whistle blows at year-end.

You either have 12 months or 13 four-week periods. For accounting reasons, most businesses use 12 reporting periods. For this article we will discuss “business performance” as it pertains to 12 report cards we call P&Ls.

What is a P&L? If you own a business surely you know what a P&L is, right? Well, not so fast. We have encountered businesses who have not yet created their P&L. What goes into a great P&L? Your P&L should summarize your company’s ability, or lack thereof to generate profits while monitoring and measuring all revenues, expenses and costs associated with operating your enterprise. Here at ShaBro Office Solutions we can help you build your P&L while taking into consideration every measurable financial facet of your company.

A well-constructed P&L will include a line of accountability for every penny of inflow and outflow for your company. As we move through this article you are going to learn your one and only true friend on your P&L is “top-line sales”. Of course, “bottom-line profit” is what you may “think” matters most but let’s look at the key areas of any well-constructed P&L:

  1. Sales & Revenue
  2. Cost of goods sold
  3. Operating expenses
  4. Tax expense
  5. Interest expense
  6. Net income (bottom-line profit)

Your P&L may include up to 80, 90 or more lines of information. There are sections for your “fixed” and “variable” expenses. An example of a “fixed” expense would be a monthly rent / lease payment as secured by a rental agreement or lease while an example of a “variable” expense would be your energy bill which can fluctuate from month-to-month.

Once your P&L is built you will be able to objectively look at every area of your business and determine where your strengths and weaknesses exist. BUT, you need to have benchmarks and goals.

Here are some things to consider:

  1. Line-by-line, what are you measuring against? For budgeting and forecasting purposes; how do you know if your sales and expense goals are realistic? Are they too high or too low?
  2. Are your cost-of-goods sold (COGs) comparable to your competitors? Are your COGs otherwise in-line regarding your finished product or service delivered although it may be slightly higher than your competition?
  3. What are the realistic payroll expenses associated for your business? Payroll costs often account for the largest expense within most organizations not-to-mention related costs such as health, retirement, uniform, perquisites and other employee benefits.
  4. Is your document flexible enough for you to run “what-if” scenarios? You may be amazed at what can happen (increased flow-through profits) when you are able to illustrate a 260 basis point improvement among 8 expense lines in addition to a 170 basis point improvement with COGs? NOW, you will be better prepared to install an operational plan that can include actionable activates to not only focus on sales but also expense management.

Remember when we said your best friend on your P&L is your top-line sales? Well, it’s true and here’s the good news – with a well-built P&L powered by Shabro Office Solutions we can help you and your best friend month after month throughout the year!

Call us today and let us help you build your P&L.