According to a study from WalletHub, the personal finance site, Texas is the best state to start a business and Rhode Island is the worst. This study was based on analyzed data from different valid sources, such as the U.S Department of Labor and Statistics and the U.S Census Bureau.

According to the study, the top 10 best places to start a business are:

1- Texas

2- Utah

3- Georgia

4- North Dakota

5- Oklahoma

6- Florida

7- Arizona

8- California

9- Montana

10- Colorado

The 10 least favourable places to start a business are:

1- West Virginia

2- New York

3- Vermont

4- Delaware

5- Pennsylvania

6- Connecticut

7- Hawaii

8- New Hampshire

9- New Jersey

10- Rhode Island

In the course of the study, the key factors that were considered were: the business environment, access to resources and business costs. In addition to this, 26 key metrics (such as corporate tax rates, labor costs, start-ups per capita, and percentage of the population that is of working age, and college-educated) were used.

How the States Stack Up

-Texas (no 1), which has the second-largest economy in the country (1.8 million) and the highest average growth in the number of small businesses, happens to have the best business environment out of all the states.

-Mississippi (no 13) has the lowest labor costs and the cheapest offices while Maryland (no 40) has the highest costs.

-Massachusetts (no 36) has the most educated population

-Three states [New York ( no 42), California ( no 8), and Alaska(no 28) ] have the most expensive office spaces while Louisiana (no 15) has the lowest educated population.

-Ohio (no 34) has the largest lowest average growth in number of small businesses while North Dakota ( no 4) has the highest average growth in the number of small businesses.

-Alaska ( no 28) has the highest availability of human capital while Colorado (no 10) has the lowest availability of human capital.

-West Virginia ( no 41), Michigan (no 18), and Vermont ( no 43) have the highest spending on incentives as a percentage of GDP while South Dakota ( no 22) has the lowest spending on incentives as a percentage of GDP.

-Alaska (no 28) has the highest average workweek (in hrs) while Michigan (no 18) has the lowest average workweek (in hrs).

What Exactly Makes a Business Successful?

Why is it that some businesses fail while others succeed? Answering this question is not that simple because there isn’t one single formula for guarantees the success of a business. What works for a business may not work for another business. Many start-up businesses on the West Coast do better than those on the East Coast but the reason why this is so is unclear. It seems that management tools and techniques do not have much direct effect on the success of a business. Whether a start-up business will be successful depends on how various factors interact and having a good understanding of the business basics also helps.

[Related article: 5 small business tips to boost sales on a budget]

Finding Talented and Experienced Employees Is Challenging

One of the problems start-up businesses face is the problem of finding employees that are talented and experienced because there is always competition for labor and the businesses with high capital are usually the ones who can obtain highly skilled labours. This is a challenge for start-up businesses because it makes it hard for them to obtain the best available labor for growth. The location of a company also plays a role in getting really good employees. Areas that are populated and have a really good number of educated people within the working class range are more suitable for attracting skilled labor.

The Effect of Corporate Income Taxes in Each State

State taxes and regulatory environment also play a role in the success of a business. Compared to the states ranked at the top, most of the least ranked states have high corporate income taxes. The states at the top also have clusters of industries and these attract investments.

Outsourcing Business Basics Are the Real Growth

As mentioned earlier, having a good understanding of business basics is a good way to make sure a business grows. Understanding the business basics is as important as choosing the right location. Two of these business basics happen to be bookkeeping and accounting. Bookkeeping involves recording and organizing a business’s financial transactions. Accounting is related to bookkeeping because bookkeeping lays the foundation for it. It is the process of measuring, processing and communicating financial information. It has to do with interpreting and analyzing data gotten through bookkeeping.

[Related article: 7 Ways Your Business Wins with Outsourced Bookkeeping Services]

The importance of bookkeeping and accounting for small businesses cannot be overemphasized because it gives a clear picture of the finances of one’s business. Bookkeeping and accounting help start-up businesses to track the movement of every single currency owned and spent and through that you can make better financial decisions, clearly understand where the company stands financially and avoid unfavourable legal issues that could come up when the financial state of the business is unclear. Making the wrong financial decisions can be very detrimental to the growth of a business and that is why bookkeeping is very important.

Take advantage of a customized bookkeeping plan made to fit your small business needs [Learn More]

How to Make Sure Your Small Business Thrives

When you want to start a business, you should consider the environment. The characteristics of the location should determine the type of business as this is one of the factors that encourage the longevity of a business. You have to consider the nature of the market, the availability of labor, the cost of production and investment opportunities among others. You need to have a good idea of what you are getting into, make a plan and see how feasible it is.

In addition to choosing the right location, you should also be aware of the importance of outsourcing business basics. Business basics are very important to how well a business performs. One of these business basics that should not be taken with levity is bookkeeping along with accounting. Bookkeeping is pretty much part of the soul of a business because it forms part of the basics of the financial aspect of a business. If you have not been paying more attention to it before or your business is failing, you should look into the bookkeeping aspect of your business.

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Watch out for the following business trends that will see businesses succeed with in 2018.

Virtual accounting
This business trend aims at helping service providers to provide their services to clients remotely. This has helped in eliminating geographical barriers. It allows for the use of video technologies such as skype eliminating the need for a face to face meeting between clients and service providers.

Outsourced bookkeeping
Businesses will shift to outsourced bookkeeping allowing other experienced and qualified individuals to do the financials for them. This enhances accuracy and saves time used for building the business. One of the most stressful parts of running a business can be the financials, and this trend aims at eliminating that stress for business owners so that they can focus on other things that they do best.

Business coaching
Everyone wants to be an expert in running their business. Coaching will help business owners get expert training to help them acquire all the qualities required for running a business. This can helps you to get ahead of your competitors.

Outsourced controllership
Every business owner and organization is under pressure to discover every upcoming discovery and a great way to maintain a healthy financial system. Outsourced controllership will be helping in saving time and enhancing efficiency ensuring that your business gets to know about everything happening in the marketing world.

Banking models will take a drastic shift
Some individuals want to bank their funds whenever they want and wherever they wish, and this does not line up with the bank traditions. This is expected to change, and digital banking is expected to grow significantly by 2020. The banking system will be replaced with a technology first-mindset where phones and computers will take over wallets.

If you want to increase your productivity, improve the quality of services and reduce time and resources used, then focus on the right business trends. Take your time to review and analyze them to make sure that you follow the ideal once so that you can do better than your competitors.

For more information on how you can start outsourcing your bookkeeping today click here and start freeing up your focus today!

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Cloud Applications
One of the leading bookkeeping trends in the bookkeeping and accounting world is cloud computing applications and solutions. Implementing this technology allows for remaining competitive while reducing software costs. The accounting information is more accessible when you start to use shared resources. When complemented by the enhanced prediction and research provided by big data, cloud apps can provide individual accountants with personalized information about each client.

Outsourcing
The virtual bookkeeping market has been realizing steady growth in recent years. Now, it’s not just about lower costs, but the outsourcing market has matured to the point where business owners are making choices based on value as well, such as flexibility and cloud-based security. Many of the outsourcing options now offer accounting, financial controllership, and bookkeeping services.

Machine Learning and A.I.
The enhanced automation provided by machine learning helps improve the quality of data entry needed for maintaining accurate account ledgers, as well as billing and tax filing documents. Using A.I. and machine learning together can help improve the speed and accuracy of automation while improving predictive analytics and fraud detection.

Blockchain
We’ve learned that everything transmitted electronically can be accounted for with blockchain, including financial transactions like stocks, mortgages, inventory and other data. Industry leaders believe blockchain will be involved in the majority of all financial transactions within the next five years. This technology has the potential to make bookkeeping more reliable and transparent than ever by introducing the possibility of triple-entry accounting using a third ledger, the public ledger showing every blockchain transaction.

For more information on how you can outsource your business bookkeeping click here.

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In each and every moment, the future is being created. Apple executives are already planning out the best specs to make life easier for their newest gadget. Technological progress continues to occur similar to outsourcing back office and admin/financial tasks to virtual accounting and online bookkeeping services, controllers, and virtual CFOs. Our technological progression has advanced so much that no matter what is going on technology just makes life easier on a number of levels.

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When you see the Unicorn Frappuccino, it reminds us all of the whimsical, fantasies of childhood. It’s colorful, happy, fun and even changes flavors as you drink it.  What could be more fun than that? What we don’t think about is everything behind the makings of the unicorn Frappuccino. All the thought and creation that went into to it before it could ever be rolled out to the public.

As a startup or new business owner, you too had put much thought into what type of business you wanted, what it was going to be like when you started it and how each piece of the business would function. Including the services, you would offer and who you would offer them too. All your thoughts were based on how to run a successful business, have fun and make lots of money.

Here at BooXkeeping we too had an idea, we wanted it to be cool, fun, and a way of life where the services we offered were not your typical bookkeeping services, we believe there is no separation between your personal life and your business life because no matter how you try they always seem to one way or another affect each other. This is where Bookkeeping redefined comes in, we believe in bringing cool into bookkeeping like Starbucks brought whimsical to the Frappuccino. Let’s face it there is nothing fun about spending countless hours on your books after spending all day running your business.

You’re not alone! Time is money no matter how you look at it and if your spending all your extra time on your bookkeeping you’re just not having fun. We are here to help! Just like the Unicorn Frappuccino makes you smile, we are here to make you smile even bigger and lighten your load so that you can be lighter in spirit, body, and soul. Bringing more than just bookkeeping to the table… We care how you’re doing in all aspects of your life, not just your business. We not only balance your books, but we help you balance your life so you can enjoy the days of the whimsical Unicorn Frappuccino.

For more information on how we can make your life more whimsical and fun click here.

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Brick and mortar buildings are becoming more remote as well with the advent of cloud computing; a rise in virtual offices has created a more convenient employment opportunity. Telecommuting situations are becoming more common as companies look for creative ways to find a balance between workload and staffing arrangements. A virtual bookkeeping arrangement can be beneficial to both the business and the bookkeeper in terms of cost and flexibility.

Online Bookkeeping, a Telecommuters Dream

Online bookkeeping permits the accounting professional to telecommute instead of physically working at a client’s office. Aside from the work location, there is not much difference between a traditional in-house bookkeeper and an outsourced accountant. They both use your preferred accounting software to post financial transactions, review and update statements and reconcile accounts.

How It Works

The business grants the bookkeeper remote access to its financial documents and software. The bookkeeper signs on to the company’s secure network from his/her computer and accesses the documents just as he would have logged onto a non-site company computer. If the bookkeeper is employed by the company, they will paid according to the employer’s payroll policies. If the bookkeeper is working as a lone contractor, they will invoice the business for the services performed and the client will send payment according to its contractor payment policy and a 1099. If they employ an online bookkeeping professional service, then it is the same relationship as any other vendor and the employment taxes as well as healthcare costs are not the liability of the business.

Benefits

Online bookkeeping grew in popularity over the past five years not just for the convenience and flexibility, but also the cost savings associated with the technology. Online bookkeepers do not require office supplies or space, and those working as contractors require no benefits, insurance or employment taxes – an enormous savings for the employer. Outsourced bookkeepers like BooXkeeping offer flexible availability and can work as little or as much as the business requires or needs; this can be especially beneficial for small businesses that may not need a full-time on-site bookkeeper or whose financial services needs fluctuate. Another great fit is for company’s that plan to scale or don’t want to worry about employee turnover!

For more information on how you can outsource your bookkeeping today contact us for your free consultation.

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Top reasons that small businesses use an outside bookkeeping service:

Payroll

Small business owners know that payroll problems can create several kinds of issues related to personnel relations or financial liability. Hiring a bookkeeping service gives you the peace of mind knowing your payroll is handled with all the regulations being followed while you focus on building your business.

Yearly Tax Filing

Although you may employ a tax preparer every April, a bookkeeping service will make sure that when it’s time to take all your documentation to your CPA that it is in order and no cleanup will need to be implemented prior to filing. This will not only save you money because you won’t have to file for an extension but will also make your CPA very happy at tax time.

Accounts Payable and Accounts Receivable

If you have to spend a lot of time collecting money out of clients, or dealing with other A/R and A/P issues, taking time away from your productivity. A bookkeeping service can make the Accounts Receivable process much easier by giving your business a more powerful presentation in the way of collections.

Resolving Conflicts of Interest

Another reason that small business owners choose to use bookkeeping services is to address some situations where business partners have access to the same capital as the owner, but different ideas of how to utilize that capital productively. When a business experiences problems where a leader or partner is allocating funds in ways that management doesn’t approve of, having a bookkeeping service in place often helps to avoid these situations, as the allocation of funds is more concrete and gets more tracking.

Withholding Taxes

Withholding taxes from staff paychecks is another aspect of business that can be very daunting to a business owner. Bookkeeping services know how to deal with different tax withholding situations. This is one area where bookkeeping services can really provide services that are worth the cost.

Freeing Up Time

All of the above are very good reasons to consider outsourcing the financial aspects of your business to a bookkeeping service. Internal problem-solving takes time away from customer outreach, expanding business processes, or anything else that business leaders consider a priority. Hiring a bookkeeping service for your books, will free up more internal resources for doing what you love and focusing on growth.

One of our core concepts here at BooXkeeping is that the workplace is a playground. The BooXkeeping workplace is a snapshot of real life, which reflects all situations and relationship challenges that call for advancement or adjustment. Therefore, our BooXkeepers are encouraged to view their workplace as a playground where they can practice skills for the development and betterment of their life. For more information on how you can hire a bookkeeping service to get your business back to a fun and enjoyable workplace, contact us today!

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Two issues with this:

1. To start with, tax reductions would need to be gigantic to have any macroeconomic impact on a $16-18 trillion economy.

2. Regardless of the possibility that upgraded development were accomplished, it would not be uniformly dispersed. US income taxes are progressive. Spending is not, so the framework all in all is not re-distributive.

Organizations

There is some unique thinking in the Trump business tax reform plan, however its income cost diverts from the thoughts being advocated. Trump is wanting to cut the corporate tax rate by more than half, to 15%, and make that accessible to the half of all US organizations that are not in corporate form.

It is not clear, but rather he may likewise be proposing an elective expense assurance for organizations to empower their proprietors to exploit the 15% rate for undistributed pay.

Although a lower rate for these for the most part private organizations raises concerns of fairness, information created by the US Treasury demonstrate that the proprietors of associations pay low viable rates under the present framework.

The House Republicans have proposed the goal based income expense would work like a subtraction strategy VAT. It would be an income charge since capital hardware consumption’s could be instantly deducted in full. Protected innovation, research and wages expenses would likewise be completely deductible. This arrangement, which would be a sea change in corporate policy when it comes to tax, and is probably going to be the beginning stage for Trump business tax breaks.

Individual Tax Reform

There is very little squeeze in Trump’s tax reform plan for middle-income families with small businesses. That is because there’s not much more cutting that’s possible, a certified bookkeeper is good to have when it comes to year end closing of your books to get the best tax cuts available. White collar class individuals don’t pay a considerable measure of taxes separately. They pay a great deal of taxes on the whole including payroll tax which wouldn’t seem to change with Trump’s plan.

As per the Urban-Brookings Tax Policy Center, a glance at a family of married parents and two children with $82,000 in income demonstrates that they are currently paying $6300 in payroll taxes (not including the business’ equivalent share) and $4000 in taxes. Trump’s would decrease the last number to $3500. So, we’re talking an extra $40 every week in their paycheck…not much help there when it comes to individual tax reform.

Trump wants individual rate sections of 12, 25 and 33%–the last being a tax reduction at the top, however it would kick in at a generally low level. He would repeal the AMT and a few people would be in higher sections, balanced by a larger standard deduction ($15,000), under which 60% less of individuals would itemize (few do currently), with a cap on itemized deductions.

Trump wants to cancel estate tax. Rather his reform plan would tax capital gains at death—a very unusual suggestion that has not been considered as a serious proposal in the past. As a certified bookkeeper looking at Trumps exemption, it would be enormous, around $10 million in this case.

Trump will tax investment fund managers under his new plan on profit interests as regular earnings and wants to repeal the 4% add-on tax substitute for Medicare tax. These fund managers would profit by his lower business rates for partnerships under Trumps plan.

Trump stated he would repeal all tax connected with Obamacare, which probably would incorporate the punishment for not purchasing medical insurance.

Subsidies for Children

Our child credit is exceptionally complex. The filer must be the guardian of a qualifying dependent (youngster under 13). There is a reduced rate of credit—beginning at 35%–for each $2000 increment of income over $15,000. Child care costs must be employment related. There is a $3000 per head restrict on the qualifying costs, capped at the lower worker’s pay.

Around 20% of all kids live in poor family units that don’t owe income tax. At the point when the tax credit was made, the Republicans needed to constrain it to individuals who owe income tax. It is still nonrefundable and inaccessible to these much lower income families.

Trump would offer a contrasting option to the credit in the shape of a nonrefundable over the-line conclusion for up to $5000 of child care costs, and a capped rebate for EITC family households that don’t owe any taxes. The derivation would be capped by state for the normal cost of care. There would be generally high income limits of confinement and stage outs for the deduction as well. Trump’s proposed end of head-of-household filing status and individual exceptions could disintegrate the benefit of the child care credit.

Trumps tax reform plan has many people asking questions on how this will affect each household and business, and these are just scratching the surface of the changes Trump wants to implement. So, making sure your books are in order will be essential in the upcoming tax seasons.

Certified Bookkeeper to Align Business

If your not sure where to start, contact BooXkeeping for a free consultation on how we can take the headache out of all your bookkeeping needs making your year end closing a bit less stressful. Partnering with a certified bookkeeper will keep you and your accountant very happy this upcoming tax season.

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