cash-flow-new-century-financial
22Aug

Staggered Receivables Vs. Cash Flow: Resolving the Equation

Posted by NCF On August 22,2019

Cash flow is important to every business, as the revenue covers overhead costs and provides a source of capital which can be used for growth projects. But with receivables on staggered payment schedules, many businesses are not getting access to revenue as quickly as they should. Fortunately, there is a way to bridge the gap between staggered receivables and cash flow.

Staggered Receivables and Cash Flow Strains

Issuing invoices with staggered payment schedules of 30, 60, or even 90 days is a standard practice. However, during that time, businesses need to make payroll, purchase supplies, advertise, and cover the cost of additional orders from other customers. Staggered receivables can end up placing a severe strain on cash flow, often pushing business owners to take out short-term loans to cover gaps in capital. These short-term loans place a further strain on cash flow, because a good portion of the revenue tri

small-business-new-century-financial
15Aug

How the Debt Cycle Limits Growth for Small Businesses

Posted by NCF On August 15,2019

When businesses need funding, the conventional solution is to take out loans for working capital. This sets the debt cycle into motion, and many businesses find themselves dependent on loans for the duration. However, the debt cycle can place a big strain on finances and limit business growth.

What Is the Debt Cycle

When a business takes out a loan, the capital is given in exchange for debt. The business then makes payments on the loan, plus interest, to pay off the debt. Loan debt takes a good chunk out of monthly revenue, and payments must be made regardless of how many or how few sales are made in that time. If cash flow is strained, businesses may take out additional short-term loans to smooth out revenue cycles at the risk of placing even more debt on the books, and juggling various loans at different interest rates can place a business in the fast-lane towards bankruptcy.

Business

entrepreneur-new-century-financial
08Aug

Business Finances: An Overview for New Entrepreneurs

Posted by NCF On August 08,2019

New business owners often wear many hats at once, acting as their own sales, marketing, administrative, and accounting departments. Unless they’ve had prior experience as a CPA, most business owners will agree that accounting and managing finances can cause the most headaches and take up the most time. Fortunately, there are some easy tips to make managing business finances easier so you can streamline the accounting process and focus more on getting sales and growing your operation.

Keep Business Finances and Personal Expenses Separate

On the outset, this rule seems fairly obvious. As time goes on though, the lines can get blurred. Using personal savings to fund your business shouldn’t happen, but some start-ups do use personal money to launch and maintain operations. Additionally, some business owners make purchases such as office supplies, and purchase an item or two for personal use in the process. It is

corporate-structure-new-century-financial
25Jul

S-Corp or LLC: Which Is Better for Your Business?

Posted by NCF On July 25,2019

If you are launching a new business or changing your structure, you are probably wondering if an LLC or an S-Corporation offers more benefits to you as a business owner. Let’s take a look at the similarities and differences LLCs and S-Corporations offer, to put things in better perspective.

LLC and S-Corp Similarities

LLCs and corporations have a number of similarities. Both offer debt and liability protection to business owners. The LLC or the S-Corp are considered legal entities which are separate from the business owner. Both an LLC and an S-Corp are considered pass-through tax entities. That is, no income taxes are paid at a business level, so any profits or losses are passed to the business owner’s tax returns. All taxes are paid at a personal level, though an LLC has the ability to opt out of pass-through status. LLCs and S-Corporations must follow the tax laws and registration requirements in the state

tax-new-century-financial
18Jul

Why Your Business Should Obtain a Certificate of Good Standing

Posted by NCF On July 18,2019

Of all the certificates and awards that businesses can seek and show off to the world at large, a Certificate of Good standing is the one that is commonly overlooked. If a business is in good standing, that certificate proves that the organization is in compliance with taxes and state laws. However, a Certificate of Good Standing has offers many other benefits to businesses of all sizes and in all industries.

How Does a Business Get a Certificate of Good Standing?

A Certificate of Good Standing may also be called a Certificate of Status, a Certificate of Existence, or simply Tax Compliance. These certificates are issued in the state where your business exists. In many cases, businesses can obtain a Certificate of Good Standing by filling out a form and paying a small fee. While the guidelines may vary from state to state, the information businesses need to submit includes:

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