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eCommerce Business Stages – Profits $500,000 to $1 million

Does this sound like you?

  • Your online business is outpacing your growth projections.
  • You may have (or be looking to add) multiple employees.
  • You want strategic advice on how to minimize your taxes before year end.
  • You may be interested in growing sales over $1m and looking for efficient technologies and cash-flow forecasting to meet your revenue goals.
  • Your business is taking over your home and you’re running out of space.
ecommerce phase 3
proud

At this phase in your business’ growth, you should take the time to pause and congratulate yourself.

Yes you may:

  • Want to grow your business even more
  • Have a to-do list that is the length of a novel
  • Have more responsibilities and stressors than ever

But that’s exactly why it’s so important that you stop to recognize how much hard work you’ve invested in building this company  from the ground up. If you can’t appreciate your own hard work, why should anyone else?

That being said, you’re probably facing a whole new variety of issues, from how to save money on your taxes, to hiring employees, to cash-flow forecasting for the next Q4.

“You need to understand your data and keep an eye on key metrics to ensure the numbers are going in the right direction”.

A licensed CPA can help and become a truly integral asset to your businesses’ goals, your tax strategy, and your financial future.

For a business person, the opportunity to hire a CPA is kind of like being offered the opportunity to construct a financial “safety net” and place it securely beneath your holdings. It’s a form of business insurance that you can’t purchase from an insurance company.

But you’re not just gaining a procedural and technical knowledge base; you’re also expanding your “team” — you know, the people who have your back when you need financial direction and business advice.

It’s astounding sometimes, to new entrepreneurs, that businesses can, and often are, built from the ground up by a very small, select number of people.

team expansion

The reason you want a CPA to be one of those people is because of the value they bring to the table as a sound board as well as a strategist. And seeking out an objective opinion on your business’ state of affairs is one of the best ways to stay grounded and feel supported as you continue growing your eCommerce business.

"Look actively for mentors -- their advice can be priceless, even for little things like acquiring business licenses. One of the smartest decisions I ever made was finding someone who could show me the ropes."

Even if you’re determined to figure out everything for yourself, having a CPA advisor to help guide you through uncertainty, complex processes and maximizing tax deductions doesn’t mean you’re giving up any of your authority over your business decisions.

An experienced CPA can simply provide strategic context for those decisions, ones which are still yours to make, and can have a significant impact on your financial future.

financial health

In addition to having a CPA in your corner as a strategic partner, there are a number of other complicated processes that a CPA can help you make sense of. When you’re running a successful eCommerce business, you need to track your business finances, as well as your own personal finances.

Just like your own health can be checked by a doctor, your personal and professional assets can be checked for general  wellness by a licensed CPA.

The first thing you’ll want to do is determine your net worth, and see which way it’s trending.

Next, calculate your debt-to-income.

Once you’re armed with these numbers, you’ve completed the most painful step in the process.

You can then track what you’re spending as well as where your money is going. Then you’ll know if you’re spending more than you should be.

After that, you’ll be prepared to set up an emergency fund account and then focus on your investment strategy. But first, ensure your financial health is… well, healthy!

Assessing your current wealth is a vital step towards becoming more well-informed about how to manage your cash flow that helps grow your business.

A CPA advisor can help you to create a budget for your business and personal finances, figure out how much to pay yourself from your company, estimate your income taxes, and how much is available for potential tax deferred savings to minimize your current year tax burden as much as legally possible.

Keep reading…

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