by Jean Miller | Accounting News, Business Growth, News, Newsletter, Small Business
Running a small business in 2025 presents both challenges and opportunities. To stay ahead of the competition, you must adopt a proactive approach to planning and execution. By focusing on the following strategies, you can set your business up for success this year and beyond.
Reevaluate Your Business Plan
Your business plan is the foundation of your company’s success and should constantly evolve as a roadmap for goals and strategies to help grow your business. Take time to revisit and update it, reflecting on changes in the market, industry trends, foreseeable challenges, and your company’s current position. Define clear objectives and align them with your long-term vision. A well-structured business plan effectively guides your daily operations and long-term decisions. The start of a new year is an ideal time to reexamine your company’s progress and milestone markers—and shake things up if you’re not meeting goals.
Stay Informed of Market Trends
Staying informed about market trends and customer needs is essential. Conduct regular market research to understand your audience’s evolving needs and monitor competitor activity. What have your competitors done to up their game? Have they introduced new products or improved customer service? What is the plan for your company in response? Additionally, take a proactive approach and look for opportunities for growth and adaptation. Use tools like Google Trends and industry reports to gather insights, enabling you to identify market gaps and stay relevant in a fast-changing environment.
Control Cash Flow Efficiently
Cash flow is the lifeblood of any small business. Create a detailed budget and regularly monitor expenses. Utilize accounting software to track income and outflows in real time and follow up on delinquent invoices. Establish a cash reserve for emergencies, optimize inventory management, and consider renegotiating payment terms with suppliers to maintain a steady flow of funds.
Leverage Technology
Technology can simplify operations and improve efficiency. Explore tools like customer relationship management (CRM) software to enhance client interactions, project management platforms like Asana and Trello to boost team productivity, and Paychex Flex to help streamline payroll and benefits. Automation tools can also save time on routine tasks, freeing you to focus on growth opportunities.
Empower Your Staff
Your team can be your greatest asset. Offer opportunities for skill development through training programs and workshops. Encourage open communication and provide regular feedback. Investing in your employees helps to build loyalty, boost productivity, and cultivate a collaborative work environment.
Focus on Marketing and Networking
Marketing is crucial for driving growth and attracting new customers. Aim to develop a multi-channel strategy that includes content marketing, email campaigns, and paid ads. Focus on your website’s search engine optimization (SEO) to improve visibility and build a social media presence to engage with your audience.
Additionally, as valuable as an online presence is, networking is still highly beneficial to growing your business. Attend industry events and conferences, join local business groups, and actively participate in online communities to build relationships that can lead to valuable opportunities.
Set Specific and Realistic Goals
Success requires clear and actionable objectives. Set SMART goals—specific, measurable, achievable, relevant, and time-bound. For example, aim to increase sales by 15% over the next quarter or onboard five new clients within three months. Create a plan and break larger goals into smaller tasks to stay focused and motivated. Remember to track your progress, adjust your goals as needed, and celebrate milestones and achievements as you go.
by Jean Miller | Accounting News, News, Newsletter, Small Business
As the United States prepares for a second Trump presidency, small business owners are paying close attention to the policies that could shape their future. Trump’s economic priorities, including tax reform and deregulation, will echo those from his first term. Here’s an analysis of how Trump’s proposed policies could impact small businesses.
The Tax Cuts and Jobs Act: A Retrospective
One of Trump’s most influential achievements during his first term was the passage of the Tax Cuts and Jobs Act (TCJA) in 2017. The law lowered the corporate tax rate from 35% to 21%, benefiting small businesses organized as C-corporations. Additionally, it introduced the Qualified Business Income (QBI) deduction, allowing certain pass-through entities—like sole proprietorships, S-corporations, and partnerships—to deduct up to 20% of their qualified income.
This meant lower overall tax liabilities for small businesses, leaving more funds for reinvestment, hiring, and growth. However, critics argue that larger businesses reaped the benefits disproportionately while small businesses felt minimal relief.
Key Focus Areas Under a Second Trump Administration
Several proposed policies stand out for their potential to reshape the small business landscape during Trump’s second administration.
Lower Corporate Taxes
Trump has suggested reducing the corporate tax rate further to 15%. For small businesses structured as corporations, this could mean even more tax savings, allowing for more funds to invest in technology, marketing, hiring, and training. Additionally, Trump has floated the idea of eliminating taxes on employee tips for hospitality and service workers.
Pros:
- Increased cash flow for reinvestment.
- Greater incentives to expand operations or hire employees.
Cons:
- Critics worry about the impact on the national deficit.
- Sole proprietors and other non-corporate structures may not see proportional benefits.
Deregulation
Deregulation was a hallmark of Trump’s initial term. In an effort to spur economic growth and encourage investment, his administration rolled back over 1,500 rules across industries. One of the most notable was the energy sector, where deregulation allowed oil and gas exploration to increase domestic energy production and reduce dependence on foreign oil. The result was cheaper gas prices, which directly benefited small businesses in delivery and transportation industries. If Trump continues to minimize compliance burdens, small businesses in sectors like energy, agriculture, and manufacturing will again benefit.
Pros:
- Lower compliance costs, especially for startups.
- Simplified operations in heavily regulated industries.
Cons:
- Some regulations, particularly those related to labor and environmental protections, are considered necessary for long-term sustainability and public welfare.
Tariffs and Trade Policy
Trump’s trade policies in his first term, including tariffs on goods from China and other countries, had a mixed effect on small businesses. The goal of imposing tariffs is to protect domestic manufacturers, but many small businesses that rely on imported materials faced higher costs. Biden kept Trump’s tariffs on Chinese imports, and if Trump continues them into his second term, there could be a continuation of supply chain challenges and increased prices for certain goods.
Pros:
- American manufacturers may gain a competitive edge.
- Encourages investment in American supply chains.
Cons:
- Higher costs for imported materials could squeeze profit margins for U.S. manufacturers.
- Potential retaliatory tariffs by other countries could limit export opportunities for small businesses.
Access to Capital
Lending through the Small Business Administration (SBA) saw a notable increase during Trump’s first two years in office. By streamlining loan processes and promoting programs like the 7(a) Loan Program, his administration helped many small businesses secure funding. Looking forward, Trump could push for expanded SBA lending programs, which would make it easier for entrepreneurs to access the capital needed to grow.
Pros:
- Easier access to financing for new and existing businesses.
- Potential for strong economic growth at the community level.
Cons:
- Over-reliance on debt financing could lead to financial vulnerability during periods of economic uncertainty.
by Daniel Kittell | Accounting News, Business Growth, Industry - Professional Services, News, Newsletter, Professional Services
Professional services firms face unique challenges when trying to scale. Effective growth requires a strategic focus on critical areas that impact efficiency, profitability, and client satisfaction. The following article explores the top key areas professional services firms must prioritize to scale successfully.
Adopting Technology
If your firm wants to remain competitive and streamline operations, there’s no getting around up-to-date technology. From cloud computing and automation tools to artificial intelligence (AI), technology can help reduce manual processes and enhance productivity. For example, automation platforms streamline routine tasks, allowing teams to focus on responsibilities that contribute more directly to the firm’s goals, profitability, and client satisfaction. Additionally, utilizing client relationship management (CRM) software helps firms interact with clients more effectively.
Project Accounting
Project accounting assists firms in tracking financials, activities, and transactions on a project-by-project basis. It helps to boost profitability and ensure resources are allocated properly. Investing in specialized project accounting software allows firms to track project performance in real-time and gain a more accurate financial picture. This can lead to better informed decisions and improved project outcomes.
Resource Planning and Utilization
The key to maximizing productivity and preventing burnout? Efficient resource planning and utilization. When you accurately identify the demand for skills and personnel, you can allocate resources where they are most needed. Resource management tools provide insight into team capacity and skill sets, ensuring that the right employees are assigned to the right projects within the correct timeframe.
Effective Time Management
Time is money, particularly in the professional services sector, where billing often depends on hourly rates. Implementing time-tracking tools and fostering a culture of time management can help employees work more efficiently and stay on task. Effective time management boosts productivity and leads to increased profitability. For example, using time-tracking software can help pinpoint areas for improvement, leading to more accurate project timelines and higher client satisfaction.
Digital Collaboration
Digital collaboration tools are essential for keeping teams connected and communicating. Platforms like Slack, Microsoft Teams, and project management tools like Asana or Trello help professionals collaborate, share files, and track project progress. Promoting collaboration leads to more seamless workflows and helps mitigate the likelihood of miscommunication and project delays.
Capacity Planning
Capacity planning involves determining the maximum workload a firm can take on without overextending its resources. By understanding current workload demands and forecasting future needs, you can prepare for growth without sacrificing service quality. Capacity planning tools like Asana, Teamdeck, and Kantata can help professional services firms effectively manage their resources and plan for growth.
Revenue Forecasting
When you can accurately forecast your firm’s revenue based on historical data and current project pipelines, you can set realistic financial goals, allocate resources effectively, and make informed decisions about investments and growth opportunities. By integrating revenue forecasting tools with project accounting and CRM systems, you can gain a holistic view of your firm’s financial health and scale sustainably.
Automation for Efficiency
Automating repetitive tasks such as invoicing, time tracking, and data entry enables firms to save time, reduce errors, and improve overall efficiency. Automating these tasks also allows your firm to focus on more complex and strategic endeavors that promote business growth, which ultimately improves profitability.
Data Consolidation for Project Insight
Data consolidation helps to gain real-time insights into project performance as well as your firm’s overall financial health. When you combine data from different departments like finance, HR, and project management, it’s easier to track important metrics, monitor project progress, and adjust strategies to stay on track. This ultimately leads to better decision-making, improved project results, and higher profits.
by Pete McAllister | Accounting News, Bookkeeping, Business Growth, News
Whether a small business owner is working with an accountant or on their own, it’s critical to establish a bookkeeping process in order to mitigate the possibilities of unexpected cash flow problems. Tracking finances and transactions provides stability for your business and allows you to focus on company goals and growth. Here are some tips for efficient bookkeeping.
Separate Business and Personal Expenses
This should be done as soon as you establish your business. Separating personal and business accounts is beneficial in that it helps to:
- Avoid blurred lines on expenses that could prompt an IRS audit.
- Limit your personal liability should your business ever be sued.
- Clarify business expenses for bookkeeping practices
By opening business accounts, you will begin to develop business credit, which is separate from your personal credit history. A good business credit score translates to lower rates on insurance policies and increases your borrowing potential.
Track All Business Expenses
It might seem like a no-brainer, but tracking and categorizing expenses and revenue streams are essential for tax purposes and profit monitoring. Doing so allows you to easily spot different areas of strength and growth based on chronicled data. Whether you use an accounting software program, a basic spreadsheet like Excel, or even a pen-and-paper ledger, what matters is that you find a process that works for you and stick with it.
Keep a Consistent Schedule for Bookkeeping
Unless your small business offers financial services, it’s unlikely that you started your company due to a love of numbers and bookkeeping, so it’s understandable if this might be a task that’s tempting to push to the backburner. However, consistently scheduling blocks of time for balancing the books will help simplify your life, especially during tax season. If your business has grown to the point where you loathe the time it takes to keep up on bookkeeping, you might be ready to hire on a bookkeeper.
Be Prepared for Major Expenses
Even if you have meticulously maintained balance sheets and cash flow reports, you don’t have a crystal ball to predict surprising expenses. That’s why it’s crucial to plan for such expenses, especially unplanned ones, with a separate emergency fund dedicated specifically to your business. Aim to save enough cash to cover expenses for three to six months. Having cash stashed away also helps to avoid going into debt for your business. Operating with little to no debt means less risk and a faster profit, which means you’ll have more capital to put back into your business for growth opportunities.
Prepare for Personal and Business Taxes
Do your best to dodge surprises and errors with your small-business taxes by preparing throughout the year. Here are some things to keep in mind:
- Income tax: The manner in which you’re required to pay income taxes depends on how your business is structured legally. For example, if you have a sole proprietorship, your business taxes are paid as part of your personal income tax known as “pass through” taxes. However, if you have a structure like a Limited Liability Company (LLC), you’ll owe self-employment taxes and no corporate taxes. Be sure that you understand how your business is structured legally so you know how you’re required to pay income taxes.
- Payroll tax: In order to file payroll tax returns, you need a Federal Employer Identification Number (FEIN). If you operate across more than one state, you will also need a State Identification Number for each state in which your business operates. Payroll taxes are deposited either semiweekly or monthly and reported quarterly.
- Sales tax: If you’re in the business of selling products, you need to collect sales tax from each customer. These taxes differ by state, county, and city. If you sell online or across multiple locations, it might be beneficial to consult a tax professional to be sure you’re collecting sales taxes correctly.
Consider Hiring and Accountant
While most accounting software programs have some form of technical support, the risk of user error is high. Real-world accounting professionals can offer an experienced set of eyes to ensure your records are accurate and your finances are organized. The hours you devote to keeping up on your business’s books and taxes could be better spent brainstorming new ideas, managing your team, and searching out new growth opportunities.
