One common question freelancers or small business owners ask is how much their businesses should grow each year. While there’s no easy answer, considering a few factors can help you set a realistic growth goal for your small business. Generally, business growth is directly related to profitability. If your business is profitable, you should be able to reinvest some profits back into the business to grow it. In 2022, 65% of small business owners reported being profitable. There are other factors to consider when determining your small business’s growth, such as your total revenue, gross margin ..read more

Do you need a CPA for your small business? Many freelancers and small business owners struggle to know when it’s time to bring in help from a CPA. Although there is no set time frame, the expertise and knowledge a CPA has can help you navigate different areas of your financial and tax reporting. Comprehending their services, pros and cons, cost, and other factors will help you determine when it’s time to find a CPA. What is a CPA? A Certified Public Accountant, known as a CPA, is an accounting professional who has met certain requirements imposed by state agencies. CPA requirements include com ..read more

For a business to be successful, regardless of its size, it is essential that it makes a profit. However, the economic result, calculated as the difference between revenues and costs, depends on many factors, so you need to know the break-even formula. In this article, we will show you the costs associated with being self-employed and running a small business, how to calculate your break-even point, and what you need to know about profit to build a sustainable business in the long run. What is the break-even point? According to Cox Business, more than half of entrepreneurs start their business ..read more

Many freelancers, entrepreneurs, and startup founders believe that by delivering a service (or selling a product), they have completed the transaction and the funds are immediately available in their bank account. In their mind, they have almost spent it when it turns out the invoice is not immediately payable. Net 30 on an invoice refers to the payment term that must be agreed upon in advance between the parties. In this article, we will talk about payment deadlines, the importance of a prior agreement, and why this is important in the life of a freelancer or entrepreneur. What is a net 30 on ..read more

A proforma invoice is a key element in your whole business finance and invoice system. Ultimately, it is essential to have one, so you can get paid by your buyers. As a business owner, you are not likely to get very excited about creating and sending invoices, but you’ve got to keep the cash flowing and that’s why you need to understand what a proforma invoice is; how it fits with all the other different types of invoice; what it contains, and how and when to use one. Receiving payments from your customers is of crucial importance for your business’ survival, so anything that helps you make th ..read more

As a small business owner or freelancer, you may be struggling to effectively analyze your profitability metrics. However, these metrics are critical for securing long-term business growth and making informed business decisions. The key metric that gives insight into the profitability of your business is gross margin. Business owners need to consistently look for ways to improve productivity and profitability, calling on the need to understand what gross margin is, how to calculate it, and the different benefits it provides. What is Gross Margin? Gross margin, commonly referred to as gross pro ..read more

A DBA stands for ‘Doing Business As,’ meaning that this is a trade, assumed or fictitious name of a business. In other words, this is the name under which a company, freelancer, partnership or any other business operates, as opposed to its legal name. Using a DBA may serve many purposes such as protecting consumers who conduct business with the entity or giving you the flexibility to rename and rebrand your business for marketing purposes.  Below are the main topics that you should know with regards to DBAs. Who Needs It? When a company files for ‘doing business as’ it means that it will ..read more

In the world of small business, cash is everything. You don’t yet have the war chest necessary to survive dry periods and the way that you handle the limited resources at your disposal is crucially important. Too often, small businesses get themselves into trouble because the metrics that they chase are all theoretical, and they underestimate the impact that a cash flow crunch can have on their plans. In fact, 82% of the small businesses that fail do so because of cash flow problems. To avoid this and to plot a robust strategy going forward, you have to understand how cash flows in and out of ..read more

Where you’re a freelancer or a large company, sending invoices is an essential part of any successful business. However, for freelancers who don’t have a dedicated financial team, invoicing can be time consuming and overwhelming, if you don’t know precisely what you’re doing. We’ve put together a comprehensive overview of exactly what an invoice is, why it’s an important process for freelancers to master, and what you need to create a professional invoice that will ensure you get paid on time. What is an invoice? An invoice is a document that records a transaction between a buyer and a seller ..read more

Understanding how to effectively take payments is an issue that most small business owners and freelancers struggle to comprehend. However, since it controls your income, a payment function is the backbone of every successful business. Evaluating different payment methods; how to choose the right one; the benefits of utilizing a payment software, and top tips to keep in mind, are all important aspects, when it comes to your small business. Evaluating the Different Payment Methods Running a small business gives you the opportunity to select which methods of payment you want to offer your custom ..read more