Businesses have had to grapple with unprecedented changes over the last couple years. Think of all the steps you’ve had to take to safeguard your employees from COVID-19, comply with government mandates, and adjust to the economic impact of the pandemic. Now look ahead to the future — what further changes lie in store for 2022 and beyond?
One hopes the transformations your company undergoes in the months ahead are positive and proactive, rather than reactive. Regardless, the process probably won’t be easy. This is where change management comes in. It involves creating a customized plan. This plan ensures that you communicate effectively and provide employees with the leadership, training and, coaching needed to change successfully.
Employees resist change in the workplace for many reasons. Some may see it as a disruption that will lead to loss of job security or status (whether real or perceived). Other staff members, particularly long-tenured ones, can have a hard time breaking out of the mindset that “the old way is better.”
Still others, in perhaps the most dangerous of perspectives, distrust their employer’s motives for change. They may be listening to — or spreading — gossip or misinformation about the state or strategic direction of the company’s future.
It doesn’t help the situation when certain initial changes appear to make employees’ jobs more difficult. For example, moving to a new location might enhance the image of the business or provide more productive facilities. But a move also may increase some employees’ commuting times or put them in a drastically different working environment. When their daily lives are affected in such ways, employees tend to question the decision and experience high levels of anxiety.
Often, when employees resist change, a company’s leadership can’t understand how ideas they’ve spent weeks, months or years carefully deliberating could be so quickly rejected. They overlook the fact that employees haven’t had this time to contemplate and get used to the new concepts and processes. Instead of helping to ease employee fears, leadership may double down on the change, more strictly enforcing new rules and showing little patience for disagreements or concerns.
It’s here that the implementation effort can break down and start costing the business real dollars and cents. Employees resist change in many counterproductive ways, from intentionally lengthening learning curves to calling in sick when they aren’t to filing formal complaints or lawsuits. Some might even quit — an increasingly common occurrence as of late.
By engaging in change management, you may be able to lessen the negative impact on productivity, morale and employee retention.
The content of a change-management plan will, of course, depend on the nature of the change in question as well as the size and mission of your company. For major changes, you may want to invest in a business consultant who can help you craft and execute the plan. Getting the details right matters — the future of your business may depend on it.
Businesses have had to grapple with many changes over the last couple years, with more likely in store for 2022. When a company implements change, the process is rarely easy. Some employees might think it compromises their job security or status. Others could distrust the motives behind the change, a particularly dangerous mindset. Meanwhile, you and your leadership team may quickly grow frustrated and tighten enforcement of new rules. But doing so often reduces productivity, worsens morale and increases turnover. To change successfully, learn about change management. It can help you communicate more effectively and provide employees with the support needed to change successfully.
In the year ahead, businesses will need to continue transforming in response to public health and economic developments. Change management can help your company handle the challenge. If you need help developing a management plan make sure to contact David Mills CPA!
Creating a comprehensive, realistic spending plan allows you to identify potential shortages of cash, possible constraints on your capacity to fulfill strategic objectives, and other threats. Whether you’ve already put together a 2022 budget or still need to get on that before year-end, here are four red flags to watch out for:
Too often, companies create a budget by applying an across-the-board percentage increase to the previous year’s actual results. Clearly, the pandemic showed us how an unexpected event can wreak havoc on a budget. However, even without such an event, this approach may be too simplistic in today’s complex business environment.
Historical results are a good starting point, but not all costs are fixed. Some are quite variable based on various factors, such as the supply-chain disruptions we’ve seen in 2020 and 2021. Certain assets — such as equipment and people — have capacity limitations to consider. Prepare accurate forecasts of revenue and expenses on a department-by-department basis using up-to-date technology to capture timely data.
Your finance or accounting department shouldn’t complete the budget alone. Seek input from key employees in every department and at various levels of management.
For example, your sales department may be in the best position to estimate future revenue. A production or service manager may offer insight into unanticipated expenses or necessary investments in equipment upgrades. The product development team can help forecast revenue and expenses related to new products and enhancements to existing products.
In addition, soliciting broad participation gives employees a sense of ownership in the budgeting process. This can help enhance employee engagement and improve your odds of achieving budgeted results.
Good budgets encourage hard work to grow revenue and cut costs. But the targets must be attainable, based on your company’s history as well as economic and industry trends.
Employees will likely become discouraged if they view the budget as unachievable or out of touch with what’s actually happening on the ground. If budgets repeatedly fail, employees may start ignoring them altogether. Tying annual bonuses to the achievement of specific targets can help encourage budget buy-in.
Even if expected revenue is forecast to cover expenses for the year, production and cost fluctuations, as well as slow-paying customers and uncollectible accounts, can lead to temporary cash shortages. Of course, more significant events can have an even bigger impact.
An unexpected shortfall can seriously derail your budget. So, look beyond the income statement and balance sheet. Forecast cash flow on a weekly or monthly basis. Then create a plan for managing any anticipated shortfalls.
For example, you might need to contribute extra capital from cash reserves. Or you might need to apply for a line of credit at the bank. Alternatively, you might consider buying materials on consignment, revising payment terms with customers, or delaying payments to suppliers (if a penalty won’t apply).
As you’ve no doubt experienced in 2020 and 2021, the environment in which your business operates is constantly evolving, so budgeting needs to be an ongoing process. We can help you develop a reasonable annual budget and monitor actual results throughout the year.
Creating a comprehensive, realistic budget enables businesses to identify potential cash shortages, constraints on their capacity to fulfill strategic objectives, and other threats. Here are four red flags to watch out for when creating or reviewing yours: 1) It’s based on last year’s results, historical data is a good starting point, but many costs are variable; 2) It lacks companywide consensus, seek input from managers and employees who are on the front lines; 3) It’s unrealistic, targets must be attainable, based on current economic and industry trends; 4) It ignores cash flow, an unexpected shortfall can seriously derail your budget, so be sure to forecast cash flow weekly or monthly.
If you have any questions about your budget and need professional advice be sure to contact us!
Small businesses need budgets, but too often, they don’t have one. The staff at David Mills CPA, LLC can assist with your budgeting needs.
Creating a business budget can seem overwhelming. One survey found as many as two-thirds of all small businesses don’t have a budget.
Without a budget, though, your company’s financial health is at risk. Small businesses face challenges every day. A budget helps mitigate those difficulties.
The experts at David Mills CPA will show you how budgeting can grow your profits. Interpreting the numbers is key, but we understand making sense of those figures can feel overwhelming.
We can help you answer the critical questions:
A smartly planned budget will include flexibility to help you navigate any troubled waters your business may face.
A budget should be more than just a yearly chore. It’s a tool to help you tackle short-term obstacles while planning for the long-term future.
We will teach you the questions to ask when looking at your budget versus actual numbers. In this way, your budget becomes a valuable tool to manage cash flow and build your business.
Budgets help make your business more efficient. They can help keep your company out of debt while developing a roadmap for future growth or expansion.
Planning your business budget will make it more efficient to operate your company.
Let the staff at David Mills CPA assist you with all your business budgeting needs. Contact us today for more information.
Exciting news! David Mills CPA has officially opened our East Peoria location. We can provide your business with accounting and financial services. Our office is open Monday-Friday from 8:00 AM until 5:00 PM. We are excited to be a part of the small business community that is located in East Peoria, Illinois.
In order to best serve our customers, we offer a wide variety of services. We can assist your business with the financial aspects so you can focus on what is most important to you. A list of our services include:
Our East Peoria location is now booking appointments. We are also available for video conference meetings if needed! For all of your financial needs, contact David Mills CPA today. We look forward to working with you and serving our customers in East Peoria.
Quickbooks offers a variety of solutions for business owners. It provides features for accounts, payroll, receivables, payables, inventory, and much more. If you feel QuickBooks could be beneficial to your company, read more to learn how it can be beneficial to your business.
QuickBooks provides many benefits for business owners. It allows for a better organization system to help keep all of your business’s information in one spot. It also allows for integration by connecting your bank account to import and categorize transactions. Finally, businesses are able to use templates such as invoices, spreadsheets, charts, and business plans that are customized to their business.
The point of sales system (POS) your business uses is extremely important. Integrating your POS system with QuickBooks is extremely beneficial. QuickBooks Online is able to connect with several POS, making it a great way to increase efficiency. Integrating the two systems can save time. The information entered will be saved in both systems. It also will reduce human error because there are fewer steps to take with an automated process. Finally, integrating the two systems provides all the necessary information at your fingertips!
With all your financial information in one place, make sure to change the password in your account to a unique, strong password. Also, be sure to change the password every so often to continue with a secure environment.
At David Mills CPA, we have QuickBooks Pro Advisers that can help with all your QuickBooks needs. If you are looking for a professional adviser, look no further than David Mills CPA. Here is what our Pro Advisers can help you with:
If your business wants the skills and knowledge from a QuickBooks Pro Adviser, contact the professionals at David Mills CPA today! We will be happy to answer any questions that you have or provide you with more information.
With April right around the corner, warmer days will be here before we know it. While many people associate spring cleaning with cleaning and organizing your home, have you thought about spring cleaning your finances? Spring cleaning your finances is a great way to get back on track with paying off any debt, getting organized, and evaluating your overall financial situation. By following our five spring cleaning tips, you will be on your way down a more stable financial path.
Take a look at how much total debt you owe. To truly understand your debt load, you will need to calculate how much debt you owe compared to the amount that you earn. If your total consumer debt is less than 20% of your net income, you are in fine standings. But, if your total consumer debt is above 20%, it is time to assess your debt load. Don’t let it overwhelm you though as there are many solutions to becoming debt free such as cutting expenses, creating a debt-free plan, setting goals each month, getting a second job and numerous of additional solutions.
Organizing your finances is a vital part of being able to gain control over your financial situation and to make sure that additional wealth is going to be created. A few ways to organize your finances can include consolidating accounts, filing important documents, determining your personal net worth, estate settlement, and shredding documents that you no longer need. All of these tasks will help you be on your way to better-organized finances.
Your budget is one of the most important parts of your financial planning. Without a budget, you could be at risk of overspending on items that could cause you to go into debt, or further into debt. The best way to tweak your budget is to look back at the past couple of months and analyze what you spend the most and least money on. From there tweak it accordingly if you see any trouble spending areas or areas that you’re budgeting more than you need to.
It is always a good idea to check up on your insurance policies, whether it be health, property, casualty, or any other insurance policies you may need to evaluate. There are many benefits by doing this such as catching any mistakes, finding better rates, or realizing it may be time to bundle. As your life changes over the years, it is always best to ensure you are not paying for insurance you no longer need or that you are not underinsured.
Evaluating your 401k is important for a number of reasons. Many people make basic mistakes such as overlooking retirement plan fees, getting scared by market volatility, or getting overly aggressive. Reasons like these are why it is important to think about retirement sooner than later so that you are able to take on an appropriate level of risk all along.
If you are looking for financial services to help get your finances in order this spring, contact David Mills CPA LLC. David Mills offers financial and accounting services to small and medium-sized businesses, as well as individuals in Peoria, IL as well as the surrounding areas. To learn more about the services we offer, or to learn more about David Mills CPA LLC as a company, contact us here. We look forward to speaking with you!
When it comes to paying your taxes, many people find themselves scrambling in April trying to get their act together. While you may think it would be an annual routine for many, about 20% of people wait until the last week to pay their taxes. Are you in that 20%? Whether you are or are not, understanding the benefits of filing taxes earlier than later is very important and will help taxpayers in the long run.
The most obvious reason to file your taxes early is to receive your tax refund as soon as you can. Last year the IRS made it possible to have your tax refund direct deposited into your account, which will allow you to receive your tax refund even faster rather than waiting weeks for a paper return.
Tax fraud is a major issue that many people end up having to deal with. While tax fraud is more common than you think, there are ways to prevent it. One of these ways is to file your taxes as early as possible. By filing taxes early, it will be more difficult for criminals to pull off. This is because if the IRS receives a duplicate return after you have already filed yours, it will be noted as fraudulent. If you have not filed yours yet, you could be in trouble.
If you discover that you owe a balance to the IRS, filing taxes early will allow you extra time to sort everything out. If you file as soon as you can in January, then you will have until mid-April to come up with the extra money that you owe. The extra time makes it much less stressful for you and your financial situation.
If you wait until the last minute to file your taxes, you may find yourself scrambling in search of receipts, personal information, etc. Thus, leading to the need for a tax extension. This turns into a serious issue when you owe a balance to the IRS and do not pay what you owe. The IRS will charge you interest and penalties until the full amount is paid off. Filing your taxes early will help you avoid all of these potential issues.
Waiting until the last minute to file taxes will do nothing but add additional stress to your life. You will feel the pressure to find your needed information and file as fast as you possibly can, which can lead to errors and other problems down the road. Tax season is stressful enough, there is no need to add even more stress by waiting until the last minute.
If you are in need of additional tax information or need assistance in filing your taxes, contact David Mills CPA LLC today. We provide expert accounting and financial services to small and medium-sized businesses, as well as individuals across Morton, Peoria, & the rest of Central Illinois. We look forward to answering any questions you may have!
No matter the type or size of your business, the tax man will come knocking on your door when tax season comes among us. It is always best to have your books in order and up to date when that time comes. We know this may seem like a hassle to keep up with yourself, but by following our tips below, you will be on your way to better, more organized accounts this year and a more successful business.
Becoming and remaining organized is incredibly important to keep your finances in order. The good news is that this doesn’t have to be complicated. Keeping up with basic spreadsheets showing all your funds received and paid out is a simple way to track your finances. At the end of every month, check to ensure your records align with the money in your bank account to ensure balanced accounts.
We understand that handling your financials is not the most straightforward task to take on yourself, which is why we always recommend hiring a professional accountant in your area to take care of the dirty work for you. By hiring a professional, you can rest assured knowing your accounts are in good hands, you are up to date with all rules and laws, and you aren’t missing out on any tax allowances. By hiring an accountant, you can put all of your attention on growing your business.
There are many benefits when separating your personal and business finances. Not only will it make your business look more professional, but it will make it much easier to separate personal and business expenses when tax time comes. Depending on how your business is set up, it may be required by law to have separate accounts. Ask a local accountant in your area if you are curious whether this is necessary for your business.
Waiting until the last minute to get your finances in order is never a good idea. Procrastinating this task usually leads to additional issues down the road; by then, it is too late to have it sorted out. Staying on top of your receipts and invoices will make it easier for you and your accountant to get your accounts sorted out promptly. And not to mention it will help your overall business run more smoothly.
Following the four tips above, you should be on your way to better, more organized accounts. The more you keep track of and have up to date, the easier it will be when tax season comes along. If you are looking for additional help with your finances or have questions about getting your books in order, contact a professional accountant in your area. David Mills CPA LLC provides expert accounting and financial services to small and medium businesses and individuals across Peoria, Morton, and the rest of Central Illinois. Contact us if you want to get your books in order this year.
Are you a small business owner who is handling payroll processing yourself? Payroll may seem like something that you can operate on your own. However, there are many demands that come along with handling payroll. Some demands include keeping up to date with payroll laws, tax deposit rules, and filing state and federal mandated forms on time so you are not penalized for missing a deadline. By partnering with a payroll provider, a small to medium-sized business can reap significant benefits, including cost and time savings, having access to expertise and increasing the level of compliance with regulations. Outsourcing payroll provides many benefits and allows the business owner to focus on aspects of the business that directly affect its future.
Processing payroll is time consuming. It requires a lot of time that many businesses do not have. From entering data to researching new laws or updates, the amount of time that payroll takes up is not desirable to many business owners. Outsourcing payroll tasks allows you and your employees to offer their full attention to the direct needs of the business.
Outsourcing payroll can be more cost effective than hiring and training an in-house payroll specialist. The cost savings include the avoidance of not only salary and benefits for an additional employee, but also other associated costs such as office space, equipment and specialized software. Having a payroll expert on your side can also reduce the chance of making costly errors and running into potential financial penalties.
Payroll is a complex and sometimes confusing business operation. Federal, state, and local payroll tax laws are becoming more and more detailed. Without having the time to research, learn and apply yearly updates, you run the risk of calculating or filing your payroll taxes incorrectly or late. By outsourcing payroll to a company that specializes in payroll processing, you can rest assured that this important business task is being handled by experts who are up-to-date with the latest laws and regulations.
Your payroll contains sensitive information about your employees, including their social security numbers and bank account information. Companies can run the risk of an employee tampering company records, embezzlement of funds, or identity theft. Even with the most trusted employees, business owners should be cautious. In-house payroll software is also something you need research carefully to see how secure your payroll data really is. Choosing to outsource payroll with a reputable company can reassure you that your confidential payroll data is secure at all times.
Payroll operations can be a difficult subject to learn and understand. Receiving payroll reports tailored to your company is a significant benefit when considering outsourcing. A company that offers payroll services has the ability to create reports that you need for your business and should be able to help explain data in a way that you will understand. Some examples of reports you may need include payroll summaries, tax liability reports, general ledger reports, union reports, and many others that can be customized to your business needs.
It is important to make sure you are hiring a company who has the ability to provide online payroll processing. Online payroll processing ensures that your employees will have 24/7 access to their information such as current payroll stubs or last year’s W-2 forms. Employees are able to request changes to their withholdings, etc., at their convenience.
A company providing payroll services can take care of any reporting issues that come about. Some examples include child support audits, Worker’s Comp audits, 1099 processing, W-2, and Wp3 processing, preparation of federal and state registration forms, or any other issues that may arise. This will save your business valuable time and energy.
Hiring professionals who have expertise in payroll will put your mind at ease. You can feel confident knowing that they will take care of every last detail associated with payroll processing. Payroll errors can be costly, both in terms of time and money. By outsourcing payroll to a company that specializes in it, your small business can ensure that the payroll is being handled accurately and reliably.
Overall, outsourcing payroll can provide many benefits to your business. Consider all of the benefits that come along with it. Some benefits include saving time and money, securing your data, and allowing you to no longer worry about handling payroll functions and all of the complexities that come along with them.
David Mills CPA, LLC provides expert accounting and financial services for both small and medium businesses, as well as to individuals. Our CPAs can assist you with a multitude of accounting services in Peoria, IL, Morton, IL, and the rest of Central Illinois.
Contact us today to see how our payroll services or any other financial services, can benefit your business.