Tag Archives: Small Business

What is the Value of Your Small Business and Why is it Important?

Understanding the value of a small business is critical for owners. Yet many business owners consider value simply from a balance sheet perspective, assuming the reported level of net assets approximates the value of the business. While the reported net assets could be a meaningful value proxy for certain businesses in certain situations, more often than not this is not the case. Why? Because for a typical small business, intangible assets will not be reflected on the balance sheet.
The presence of one or more intangible assets in a business, such as the examples shown to the right, often result in enhanced earnings and cash flows, which can raise the value of the business over and above the reported level of net assets owned by the business. This additional value can be quantified by reconciling the difference in enterprise value determined under the Income and/or Market Approaches with the value of net assets under the Asset Approach.

Many owners take a reactive approach to valuing their small business, choosing to address valuation only when in dire need, such as a dispute or withdrawal from the business. However, by proactively addressing questions of valuation, small business owners have the opportunity to use valuation as a planning tool and long-term safeguard.

Want to know the value of your small business? Or gain an understanding of what drives its value? Consult a CPA with Accredited in Business Valuation Credentials, who can offer insight and opportunity tailored to your situation.

Aronson LLC’s Financial Advisory Services team assists small businesses in a variety of industries with valuation and M&A-related services. To learn more click here, or contact Steve Purdy or Bill Foote at 301.231.6200.

Use QuickBooks-Compatible Apps to Reduce Data Entry

As a small business entrepreneur there is a lot of demand on your time from competing forces, not the least of which are accounting and administrative tasks. For most business owners and their support staff, these tasks are the necessary evil of doing business, often put off until the last possible moment in favor of revenue generating activities.

Technology innovations have made it possible to reduce time and effort expended on bookkeeping keystrokes. For those using QuickBooks (the number one small business accounting software in the U.S.), it’s easy to expand the capabilities of the basic software with apps from the Intuit app store. The website features web-based and mobile apps that link with QuickBooks desktop or QuickBooks Online, allowing businesses to capture specialized data once and import it directly and automatically into QuickBooks accounting software.

Some of the top-rated apps available for legal and professional service providers are:

  • Concur, Expensify , Tallie – These apps for travel and expense reporting allow employees to create reports from mobile apps that scan receipts, track mileage, etc., and automatically link to your QuickBooks accounts, vendor names, classes and location info.
  • BigTime, TSheets, Chrometa – These mobile time tracking apps will sync to QuickBooks for payroll or invoicing. Users can enter time through the web from computer or smart phone. Chrometa may be the most automated – its “passive timekeeping” feature logs every activity that takes place on your computer and the amount of time on each task.
  • Fundbox, BlueVine – Accounts receivable financing apps link directly to your QuickBooks invoice information to process cash advance requests. Total financing and fee structures vary for each of these products.

QuickBooks has been recognized by a broad range of technology developers for its top spot in the field of small business accounting products. These app developers are eager to capture new clients through integration of their product with QuickBooks, and users can benefit through administrative economies when the software integration meets their needs. This may be an opportunity for your accounting staff to benefit, too.

For general information or to discuss your particular situation, please call your Aronson advisor at 301.231.6200. Our Certified QuickBooks ProAdvisors are CPAs who can provide assistance with any QuickBooks issue.

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