As a business coach, I’ve often witnessed the power of familial bonds in the world of entrepreneurship. One strategy that has shown immense potential for both the business and the family is hiring children within the business. While some may raise eyebrows at the idea, there are numerous benefits to be reaped from such a decision, ranging from financial advantages to fostering a sense of responsibility and entrepreneurship in the younger generation.

Two Financial Benefits of Hiring Your Children in Your Business

Hiring your children and offering them a salary can be a mutually beneficial scenario, financially speaking:

1. Salary Expenses: Instead of handing out allowances, you can pay them a reasonable wage for the work they do. The IRS allows business owners to deduct reasonable wages paid to their children as a business expense.

2. Tax Advantages: Hiring your children can also offer tax advantages for both parties. Children can earn up to a certain amount (subject to change, so consulting a tax professional is advisable) without paying federal income tax. For the business, wages paid to children are deductible as a business expense, reducing the overall taxable income.

Tax Exemptions and Retirement Benefits Associated with Hiring Your Children

As a business owner, it’s also important to understand the potential tax benefits of providing certain benefits to your employees, including family members. In particular, offering retirement planning as a benefit to your children can both introduce them to the concept of saving early on and yield tax advantages for your family. Let’s get into the details:

Tax Exemptions for Certain Benefits: Depending on the structure of your business and the tax laws in your jurisdiction, certain benefits provided to employees, including your children, may be tax-exempt. This could include health insurance premiums or contributions to retirement plans.

Retirement Planning as a Benefit: By hiring your children, you can also introduce them to the concept of retirement savings early on. You may establish retirement accounts, such as a Roth IRA, and contribute a portion of their earnings. This not only helps them start saving for their future but also reduces the family’s overall tax liability.

Three Final Benefits of Hiring Your Children within Your Small Business

Hiring your children can reap benefits beyond providing you and them financial and tax-savings benefits. This decision can also offer them a meaningful learning opportunity and set the stage for their future success, both professionally and financially. Here are three final benefits of hiring your children within your small business:

1. Hiring your children provides them with a learning opportunity: Working in the family business provides invaluable real-world experience for children. They learn important skills such as communication, teamwork, problem-solving, and financial literacy, all of which are crucial for their future endeavors.

2. Hiring your children creates an opportunity for family bonding: Working together can strengthen family bonds and create shared experiences. It provides an opportunity for open communication and mutual understanding between generations, fostering a sense of unity and purpose within the family.

3. Hiring your children allows for proactive succession planning: Hiring children can be a strategic move for succession planning. It allows them to gain firsthand experience and knowledge of the business, preparing them to take on leadership roles in the future.

Ultimately, hiring your children in your business can be a win-win situation for both the family and the business. This business strategy offers financial benefits, tax advantages, and valuable learning opportunities while fostering a strong sense of family unity and preparing the next generation for future success. 

However, it’s essential to approach this decision thoughtfully and in compliance with all legal and tax regulations. Consulting with a qualified tax advisor or financial planner is a great way to navigate the complexities–and maximize the benefits–of this arrangement.

You may have heard reports over the past couple of years regarding the demise of QuickBooks Desktop.

Actually, if you search the web to purchase QuickBooks Desktop, you’ll be hard-pressed to find it.

Now that we’ve passed the May 31st, 2024 sunset date of the 2021 versions of QuickBooks Desktop – Pro, Premier, Mac and Enterprise Solutions v21, there is no more Intuit support for those 2021 versions and any integrations for connected services such as payroll and merchant services will no longer link.

There is a New Date on the Horizon

Intuit will stop selling new subscriptions of Desktop Pro, Premier and Mac as well as Enhanced Payroll to new US users on September 30, 2024. This is not a sunset or discontinuation; it’s a stop-sell.

If you don’t have a current subscription of the 2024 QuickBooks Desktop Pro, Premier or Mac or Enhanced Payroll on or before July 31, 2024 – you will not be able to purchase it.

Existing customers with 2024 Pro, Premier, Mac or Enhanced Payroll will not be affected and they will still be able to renew their software annually – this is only for new customers. Existing customers will be able to add seats, additional licenses, to their existing licenses.

QuickBooks Enterprise Solutions is Alive and Well

This stop-sell order does not affect QuickBooks Enterprise Solutions. Think of the Enterprise version of QuickBooks as the Pro/Premier software on steroids. It’s the same product, just more robust, with increased capacity and additional features.

Next Steps – What You Need to Do

Confirm that you have the 2024 version of QuickBooks Desktop and that your payment method on file with Intuit is current with the correct card number and expiration date. Do not let your subscription for Desktop Pro, Premier, Mac or Enhanced Payroll lapse.

If you need assistance with the renewal process or upgrading the file from an older version, please reach out.

As a business coach, one of the fundamental lessons I impart to my customers is the vital importance of cash flow management. Cash flow is the lifeblood of any business, and understanding the primary avenues through which cash is generated can make the difference between thriving and merely surviving. There are essentially three ways to generate cash for your business: through operations, financing, and investing. Let’s delve into each of these in more detail.

1. Cash from Operations: Doing What You Do Best

Generating cash from operations is the most sustainable and preferable method for a business. It involves the day-to-day activities that your business engages in to generate revenue. Your operations cash flow is like the engine room of your enterprise, where the core products or services are created, marketed, and sold.

The key business priorities for generating cash from your operations include the following:

•  Generating revenue: This includes sales of goods or services. Consistently increasing sales while managing expenses effectively is crucial.
• Managing expenses: Controlling operating expenses ensures that more of your revenue is converted into profit.
• Improving efficiency: Streamlining operations can reduce costs and improve productivity, in turn boosting cash flow.

Prioritizing operational cash flow is vital to a successful business because it indicates a healthy, self-sustaining enterprise. Managing the above priorities while enhancing customer experience, optimizing pricing strategies, and continuously improving product or service quality will drive your operational cash flow.

2. Cash from Financing: Leveraging Debt and Equity

The second avenue of generating cash flow is financing, which involves borrowing money or raising funds from investors. While less ideal than generating cash from operations, financing is sometimes necessary to support growth, manage working capital, or navigate challenging times.

There are two primary types of financing:

•  Debt Financing: This includes taking out loans or issuing bonds. While debt must be repaid with interest, it can provide immediate funds for expansion at a critical time for growth (or other needs).
• Equity Financing: Selling shares of your company to investors in exchange for capital. This doesn’t require repayment but does dilute ownership.

Financing can be a double-edged sword; it can provide the necessary capital to seize growth opportunities, but it also comes with risks, such as interest obligations and potential loss of control. A sound financing strategy should balance these risks, ensuring that debt levels remain manageable and that equity is only diluted when it aligns with long-term goals.

2. Cash from Investments: Selling Assets

The third method is generating cash by liquidating investments you’ve made for your business. This strategy can include selling off assets, such as equipment, real estate, or even entire business units that are no longer core to your business strategy.

Below are three critical considerations for your investing activities:

• Asset Management: Regularly review your asset portfolio to identify non-essential or underperforming assets.
• Strategic Sales: Consider selling non-core assets to free up capital, which can be reinvested in higher-return areas of your business.
• Investment Income: Earning returns from financial investments can also contribute to cash flow.

This method can provide a significant influx of cash but should be approached cautiously. It’s essential to ensure that selling assets aligns with your long-term strategic goals and doesn’t undermine your operational capabilities.

Balancing your Cash Flow Sources

Each of these three sources of revenue has its place in a comprehensive cash flow strategy.  Remember, cash from operations is most reliable, and wisely leveraging financing can support growth and stability. At the same time, strategic asset sales can optimize resource allocation. All three avenues can help your business grow and remain stable. Strategically integrating these three methods of generating cash could look like this:

• Optimizing your operations to boost cash flow by improving efficiency and controlling costs.
• Seeking financing to invest in new technology to expand your capacity to produce
• Selling outdated equipment to raise additional funds.

As your business coach, my goal is to help you navigate these avenues effectively, ensuring your business can not only survive but thrive in any economic climate. As always, if you have any questions or want to learn more about cash flow management services for your business, please feel free to contact us anytime.

Implementing a new accounting system is no small feat. It requires careful planning, coordination, and commitment from every team member. We’re always excited to help a business with a new accounting infrastructure implementation because we know the positive impact it can have on a business. 

We also understand that, as a business owner, transitioning to a new software solution can be both exciting and daunting. You’re taking a giant leap in a positive direction to increase your efficiency, enhance the functionality of your accounting system, and optimize your processes.

But great reward doesn’t come without some risk: you’ve likely already considered employee learning curves, potential technical challenges during the transition period, and how a new implementation could disrupt daily operations. These concerns are valid, and with the right expectations, the journey can be smoother and more rewarding for everyone involved.

Hard Work Ahead: Embracing the Challenge

Let’s be honest: implementing a new accounting system isn’t a walk in the park. It requires time, effort, and resources to ensure a successful transition. From data migration to process reengineering, numerous tasks need to be completed with precision and attention to detail. It’s a journey that will test the resilience and determination of the entire team. 

Rowing in the Same Direction: Unity in Purpose

Implementing a new accounting system requires a collective effort from your entire team. Everyone on board must be rowing in the same direction; if you notice team members resisting the change, it’s best to address the issue head-on. Ultimately, the goal is not to make their jobs harder; it’s to improve their workflows and processes in the future by putting in the hard work now. And for your implementation to be as successful and pain-free as possible, every team member must be ready to embrace change, adapt to new processes, and support one another throughout the transition. With a company culture of collaboration and communication, we can overcome any challenges that come our way while implementing your new accounting infrastructure.

Charting the Course: Milestones and Deadlines

Like any major project, implementing a new accounting system involves setting milestones and deadlines to keep the team on track. These milestones serve as checkpoints to assess progress and make necessary adjustments along the way. Whether we’re completing data migration or conducting one-on-one training with your team, each milestone brings us one step closer to our ultimate goal: to give you a beautiful accounting infrastructure that meets your current business needs and still leaves room for growth.

Bringing It All Together: The “Go Live” Date

The “go live” date is the culmination of your months of hard work and preparation. It’s the moment when the new accounting system officially replaces the old one, and all systems are a go! Reaching this milestone involves coordinating a multitude of moving parts, from finalizing configurations to conducting system testing. Everyone needs to be aligned and working together towards this common goal.

Embracing Differences

Transitioning to a new accounting system inevitably brings about comparisons between the old and the new. From software functionalities to workflow processes, there will be changes that require adjustment and adaptation. It’s important to acknowledge these differences and approach them with an open mind and a willingness to learn. We wouldn’t be guiding you through an implementation if we didn’t already understand your business’s unique needs and believe we were charting the best path forward for you. With the right mindset, we can turn the differences between your former and future accounting systems into opportunities for growth and improvement.

Implementing a new accounting system is a significant undertaking that requires dedication, perseverance, and teamwork. By setting clear expectations and rallying the team around a common goal, we can confidently navigate this journey and achieve success. You can learn more about our implementation services here.

As a business coach and advisor, I’ve witnessed firsthand the transformative effects of company-sponsored team retreats. While retreats may conjure images of luxurious vacations, they are far more than just an opportunity for relaxation on the company dime. When strategically planned, a winter retreat to a warm weather climate–or a summer retreat to a more temperate environment–can be a powerful tool for fostering team cohesion, enhancing communication, and strengthening relationships among co-workers. 

Let’s explore a few best practices for creating an impactful retreat, including a well-balanced itinerary, programming that aligns with your goals, and how to craft a retreat that ultimately benefits your organization and employees.

Striking the right balance: How to create a company retreat itinerary that prioritizes both work and play.

One of the most common misconceptions about team retreats is that they are solely about leisure and relaxation. While downtime and recreational activities do play a crucial role in fostering camaraderie, a successful retreat should also include structured work sessions aimed at achieving specific goals and objectives.

To craft a productive and meaningful agenda for your retreat, start by building out a timeline of the trip, accounting for structured planning sessions, meals, team-building activities, team leisure, one-on-one time, and independent time. 

Once you have the framework for your retreat, it’s time to start planning your structured projects.

How to develop an agenda that aligns your team retreat with your company’s goals.

Integrating structured projects into the retreat agenda ensures that the time spent away from the office sets you up for success when you return. Depending on the objectives of the retreat and your team’s needs, these projects can range from brainstorming sessions to professional development, skill-building workshops, and strategic planning exercises.

For example, teams may collaborate on developing innovative solutions to current challenges, refining company values and goals, or enhancing communication and teamwork skills through interactive workshops. Retreats can also be a good time to address more serious topics, like disaster management and business continuity. By aligning the work with the retreat’s overarching goals, employees can benefit from a sense of purpose and accomplishment, and the company can benefit from a clear path forward and an engaged, satisfied team.

Meet with your team a few weeks before the trip to discuss the proposed itinerary, their perceptions of the company’s and team’s needs, and the results you’d like to achieve during the retreat.

A retreat is an investment in the health of your organization.

A company-sponsored employee retreat is not just a vacation. It is an investment in your team’s well-being and professional development. It is an opportunity to step away from the day-to-day grind, gain fresh perspectives, and strengthen bonds with colleagues in a relaxed and inspiring setting.

However, striking the right balance between work and play is essential. While recreational activities are important for promoting relaxation and socialization, they should complement, not overshadow, the work component of the retreat. By carefully curating the agenda to include a mix of structured projects and leisure activities, you can create a retreat experience that is as impactful as it is enjoyable.

A company retreat to an enjoyable climate offers a unique opportunity for team-building and relationship-building among co-workers. By combining structured work sessions with recreational activities, companies can foster a sense of camaraderie, boost morale, and enhance productivity. So, embrace the sun and consider investing in a company-sponsored retreat for your team!

Remember, it’s not just about the destination—it’s about the journey and the connections forged along the way.