They say money can’t buy happiness…

But it can buy you a good CPA… which is basically the same thing.

Because on a serious note, it’s hard to have peace of mind about your New Hanover County business’s finances if your books aren’t squared away. Your financial reports will be incomplete. You’ll be unable to make accurate forecasts about your cash flow – and what you can and can’t do with expanding your business.

Especially if you’re considering buying a commercial space to house your business. I’m going to get more into that one today, but before I do…

I want to acknowledge the topic crowning the headlines this week and last – tariffs are happening. I’ve got guidance and thoughts about this and will speak more in-depth about it next week. But for now, begin considering where you can pivot in your business to react to possible increased costs.

I’m here not just as a business advisor, but as a strategist in your corner. My aim is to help you run the kind of forward-looking analysis that keeps your business steady in times like this.

One example of this kind of thinking, as you’re looking at what’s best for your business, is considering whether buying a space is the right move for you right now. 

Let’s take a look.

Commercial Mortgage Rates: Making the Right Move for Your Wilmington Business
“Risk comes from not knowing what you’re doing.” — Warren Buffett

There was a time when buying a building for your business felt like the natural next step. But with high borrowing costs and economic pressures tightening everyone’s margins, the choice to buy in 2025 requires a lot more calculation than confidence.

Your hesitation about taking on a commercial real estate mortgage is reasonable. Owning commercial property is a big move, and it needs to fit into your broader financial strategy, not just your five-year plan.

Still — owning commercial property isn’t off the table. In fact, for the right business, it can be one of the smartest moves you’ll ever make. The key is understanding what you’re actually getting into. Here are a few things you should be aware of…

Interest rate: Commercial real estate mortgages aren’t like the 30-year, fixed-rate home loans you’re probably familiar with. Traditional loans run anywhere from 6.5 to 12 percent depending on property type, loan term, and borrower qualifications (though most fall in the 7-8 range). SBA loans run higher interest rates: 10-14 percent on variable rates, 12-16 percent on fixed rates.

Loan payments: These loans usually last 5–10 years, but the monthly payment is often calculated using a 20- to 25-year amortization. That means your monthly payment will be significantly higher than it would’ve been just a few years ago — and that directly impacts your cash flow.

At the end of the term, you’ll owe a balloon payment — meaning you either need to refinance or pay off the remaining balance in cash.

Refinancing: Refinancing too early, though? That’ll cost you. Most commercial loans come with a step-down prepayment penalty: 5 percent of the loan if paid off in year one, then dropping to 4 percent, 3 percent, and so on. 

And with commercial mortgage rates now hovering between 7 and 9 percent, that penalty stings even more. These rates are higher because, unlike residential mortgages, commercial loans aren’t backed by Fannie Mae or Freddie Mac. Banks carry all the risk — and they price that risk accordingly.

Down payment: This is another shocker. While 3 percent down might get you a house, you’ll likely need 20– 30 percent (or more) for a commercial property. And closing costs can hit 3–5 percent of the loan amount.

What are the strategic benefits?
Despite all that, owning can still be a powerful tool — especially for businesses that are stable, profitable, and ready for long-term positioning. You get control over your space. Protection from rising lease costs. And, of course…

Tax benefits: 
– Commercial ownership lets you deduct interest, property taxes, insurance, maintenance, and property management fees.
– You also get depreciation, which spreads the cost of the building over time as a non-cash expense. 
– Owning the property also opens the door to estate planning strategies that help you pass wealth to the next generation with major tax advantages.

Consider SBA-backed loans…
If your business is occupying more than 51 percent of the space, SBA 504 or 7(a) loans could offer better terms and more favorable commercial mortgage rates — plus lower down payments and longer amortization.

Don’t rush this decision
This is one of those moments where short-term pressure can lead to long-term pain. If your industry is shrinking, your margins are thin, or your business is in a volatile market, locking into a loan — no matter how attractive the commercial mortgage rate — might not be wise.

But if your business is healthy, growing, and built for the long haul? Ownership could give you the financial foundation to scale without the unpredictability of leasing.

Bottom line: Buying your own commercial property is a huge step for your Wilmington business. We’d be happy to review the financial pieces of such a transaction with you. Schedule a time here:
calendly.com/hayescpapllc

 With you in this,

Daniel Hayes

The post Commercial Mortgage Rates: Making the Right Move for Your Wilmington Business appeared first on Hayes CPA PLLC.

I recently read an article that was a good reminder of why I started my business in the first place. It was about a nurse anesthetist who started making quilts for his son, and turned his hobby into a side hustle, bringing in 1.4 million a year. 

You were once in this quilter’s place too: you caught a vision, you ran with it, and at some point… it grew. You brought in a team. You built systems. And now you’re not just doing the thing you love – you’re bringing others along for the journey.

Yes, there are times when running your New Hanover County business is legitimately hard. 

But when you stop and think about it, being a business owner is actually pretty incredible. You get to call the shots. You set the pace. You shape the culture. And you lean into your strengths to support what you’ve built – whether that’s sales, vision-casting, or quietly cranking out deliverables behind the scenes.

But that autonomy comes with a cost.

Because when you are the one at the helm, it’s also you who can become the bottleneck (and often, you’re the last one to realize it).

Without honest feedback loops, regular self-evaluation, or outside accountability (yes, even from your trusted accountant or business advisor – hi), it’s dangerously easy to slip into patterns that feel productive but are actually stalling your business’s growth.

We all know what bad leadership looks like … in other people. It’s easy to spot from the outside. But your own bad leadership habits? Not so much.

So, today’s writing is your gentle nudge – take a good look in the mirror. Assess where your leadership behaviors have been less than ideal, and ask yourself what needs to change. For your bottom line, yes. But also for the sake of those who have chosen to be a part of what started as your big idea or your sketch on a napkin.

3 Bad Leadership Qualities That Will Stall Your Wilmington Business’s Growth
“Leadership is not a license to do less. Leadership is a responsibility to do more.” – Simon Sinek

You and I both have blind spots – little habits, behaviors, and patterns we don’t notice, but that affect everything around us. 

And unfortunately, these blind spots in your leadership behaviors can majorly hurt your business (IF you choose to ignore them). 

I know facing your weaknesses head-on is uncomfortable. But it’s a humbling process you should get used to. Because, ultimately, the forward progress you’ll see in your business is worth it. 

So, as we look at these bad leadership qualities, honestly ask yourself: Am I (unintentionally) leading my business this way?

#1: The know-it-all attitude. 
No one would claim that arrogance is an asset in any leadership context. But it can often sneak into your leadership disguised as confidence or decisiveness. If you’re resisting feedback, blaming others when things go wrong, ignoring advice and data when making decisions, or avoiding delegation…that’s the know-it-all in action. 

The cost? 

• Your employees stop speaking up. 
• Your business gets stuck in old systems. 
• You miss opportunities for streamlining operations and resolving issues that are hurting your bottom line.
• You’re less agile in responding to market shifts (making your business susceptible to revenue dips and big financial setbacks). 

#2: Missing-in-action leadership.
MIA leaders are disengaged and avoidant. Have you acted like the MIA leader in any of these scenarios?

Scenario 1: A team member is consistently missing deadlines and causing friction with other team members. Instead of addressing this in a way that helps them grow, the MIA leader ignores the issue, hoping it’ll sort itself out.

Scenario 2: During team meetings, it’s obvious the MIA business owner is just there to check the box and move on with their day. They’re distracted and rushing to get the meeting over with. 

Scenario 3: The team is working on a new project. The MIA business owner leaves them to make progress on their own, never checking in to see what resources they might need or what roadblocks they’re facing. 

What’s the outcome for your team? Resentment. Frustration. Reciprocal disengagement. And when they aren’t receiving the support they need, movement toward your business goals stalls. Eventually, MIA leadership causes huge turnover rates (which is a huge financial and productivity setback). 

#3: The goldfish mentality.
Popular belief holds that the average goldfish has an attention span of 9 seconds. Though it’s been proven to be a myth for the fish, it’s becoming close to fact for a lot of business owners. 

Think you’re not a goldfish leader? Ask yourself if you…
…spend meetings answering emails. 
…leave conversations midway to deal with other issues. 
…let your focus time get interrupted by notifications and quick questions. 
…often lose track of deadlines. 

Those with the goldfish mentality don’t lead – they react. Because constant multitasking forces your brain to switch contexts too much for sound decision-making and strategizing. You’ll spend your energy putting out every fire instead of focusing on what matters long-term. 

Think about what message this behavior is sending to your team. It sets a culture of busyness and distractedness, not a culture of effectiveness. 

And the eventual outcome? Burnout, for you and your team (again resulting in high turnover rates and hindered growth). 

Yes, self-assessment here is critical – but it can only take you so far. You really need outside input to fully understand your leadership blind spots. And to see positive change in your Wilmington business, you need expert insight on how to overcome your bad leadership qualities. So, if you’re ready for the gentle-but-hard truth from a business advisor who is genuinely invested in your growth and success, let’s chat: 
calendly.com/hayescpapllc

To becoming a stronger leader,

Daniel Hayes

The post 3 Bad Leadership Qualities That Will Stall Your Wilmington Business’s Growth appeared first on Hayes CPA PLLC.

The nation’s collective basketball-related madness has begun. (Thanks to meetings with clients, my team and I have been feeling the madness for a while now. So welcome to the party.) 

How is your bracket faring? Because I love statistics, here’s one for you: So far in March Madness history, only one person has ever had an absolutely flawless bracket through the Sweet 16. And he wasn’t even a big basketball fan. 

While all the basketball madness is ramping up, some of the madness you’ve been dealing with related to your business is finally slowing down. 

FinCEN has released its final word (sort of) on BOI reporting: ​​U.S.-based businesses no longer need to report their beneficial ownership information. Only foreign companies doing business here in the U.S. have to report (but they don’t have to report U.S. individuals as owners). 

Now comes the caveat you were probably anticipating: This is an interim rule. So, while the need isn’t as urgent, it’s still wise to have your BOI reporting documents at the ready. 

Hopefully, for now, this makes it feel like there’s a little less madness happening in your business. Because one of the best things you can do for your business (and for your own state of mind) is to identify areas of chaos and do what you can to bring more clarity. 

Today, I want to bring up another area that is a source of chaos for a lot of Wilmington business owners (that actually has a very simple fix)…

How to Choose the Right Payroll Software For Your Wilmington Small Business
“‘If it ain’t broke, don’t fix it’ is the slogan of the complacent, the arrogant or the scared.” – Colin Powell

Think about the payroll software you’re using for your business right now.

Does it waste your time with lots of troubleshooting?

When your troubleshooting hits a dead end, is it hard to get a hold of customer service?

Is it a pain to sync with your other accounting software?

Does it make documents and information difficult for your employees to access?

Is it putting your business at risk by not protecting your data?

If you answered yes to even a couple of these questions, it’s probably time to shop around for new payroll software options. There may be some new ones on the market since you last looked and it’s always important to leverage the latest technology.

And listen, I know changing over to a new system is a pain. But the costs to your business of using the WRONG payroll software for your small business are ultimately much more painful. 

Because an ill-fitting software will cost you valuable time and mental energy. But with the right software? Your hands will be untied to work more on what you actually care about – your business’s financial goals and your overall growth. 

Making the right call
Your payroll software must, at the bare minimum, process direct deposits and assist you with payroll tax compliance. (But note that you’re looking for compliance help, not a full handoff.) Also, try to go for software that has automation features. Every task you can automate is one less task on your plate. 

But beyond the must-haves, also consider which software has features best suited to your business’s needs. Here’s a little cheat sheet for you…

• If you have remote workers or multi-state operations, or you’re in a highly regulated industry (like healthcare or construction): Look for software with features like W-2 and 1099 form generation, workers’ compensation integration, and multi-state payroll support.
• If you have mostly hourly employees or run a service-based business: Look for built-in time tracking, overtime and PTO calculation, and scheduling and shift management.
• If you offer benefits or you’re hiring frequently: Find software that helps with health insurance and retirement plan integration, employee onboarding and paperwork, and labor law compliance tools.
• If you’re a consultant, you own a creative business, or you own a trade business hiring subcontractors: Look for 1099 payment processing and expense reimbursement options.
• If you own a professional service firm or a project-based business: You’ll want a payroll software for your small business with accounting software integration, custom payroll reports, and job costing and project-based payroll.

Leveling up 
In a 2022 survey, 43 percent of business owners said tax compliance was their biggest struggle with payroll. It’s a struggle I’m sure you’ve dealt with – tax legislation never sits still for long, and failing to keep up means serious consequences for your business.

For this reason, a lot of business owners turn to full-service payroll providers that tout their efficiency at getting payroll tax compliance taken care of for you. And they’re often a great choice if you have complicated payroll needs or you’re focused on scaling up your business.

But I would advise caution here – compliance mistakes can still happen. 

And the responsibility of getting your taxes filed correctly still falls on YOUR shoulders (even if your provider lets you down). Don’t ever assume that your provider has done everything correctly. Always verify that your tax payments and filings are submitted on time, that your workers are classified correctly, and that withholdings are accurate. 

Whether you opt for payroll software for your Wilmington small business or a full-service provider, your role here is one of active involvement. It’s just the nature of payroll. And the reality is, your business likely needs you more in other areas – areas that you’re probably more passionate about, too. 

So, if you’d like to pass this off to someone you can trust, my team and I are here for you. We can guarantee you stay payroll compliant, so you can put more of your attention toward your business’s growth and success: 

calendly.com/hayescpapllc

To doing payroll better,

Daniel Hayes

The post How to Choose the Right Payroll Software For Your Wilmington Small Business appeared first on Hayes CPA PLLC.

It’s officially time to get serious about your accounting.

Why? Just take a look around: The consumer price index went up 2.8 percent in February (down from 3 percent in January). So, yes, inflation has mellowed slightly, but cost pressures remain (especially for your morning omelets).

While slower price hikes are good news for your Wilmington business’s budget, prices are not decreasing. And tariffs remain an unknown factor that could also affect you.

Which means you need to be thinking strategically: Where are the prices of critical goods for your business currently resting, and how are you going to handle them?

You aren’t the only one who lets inflation impact your spending – banks usually react by tightening their lending standards or requiring higher interest rates. Which is not ideal for you, if your current business goals involve expansion that you’ll need to take out a loan for.

Plus, if you bump up your prices significantly because of tariffs or inflation, lenders will see your business as higher risk.

So, what can you do?

Hone your business’s accounting. Make sure you’re consistently doing the basics. Truly, intentional accounting is your best move if you want the freedom to take every opportunity that comes your business’s way. 

Here’s what I mean by that…

Opportunities Wilmington Business Owners Will Miss Without Accounting Basics
“The loftier the building, the deeper must the foundation be laid.” – Thomas à Kempis

Here’s the hard truth: You’ll NEVER be able to level up your business with financing or scale it down if you don’t have accounting basics in place. 

Why? Because numbers can’t lie. 

Your cash flow statement, debt-to-income ratio, P&L statements, and all your other accounting records are a direct gauge of the financial health of your business. They’re the proof that someone – whether a buyer or lender – should take a chance on you. 

Does your business’s accounting currently give them reason to?

What they want to see
If you walked into a local New Hanover County lender’s office today and asked for a loan, they’d ask for proof that your company is financially stable. They want to see…

• At least two years of accurate financial data, including profit and loss (P&L) statements, balance sheets, and cash flow statements. 
• Strong cash flow management. If you’re constantly scrambling to cover payroll, missing vendor payments, or overdrawing accounts, lenders will see you as a high-risk borrower.
• Accurate tax filings and no outstanding liabilities. Missed tax payments, IRS penalties, and unfiled returns are all big turnoffs for lenders. 
• Low debt-to-income ratio. Messy accounting equals an unclear debt position (which equals no loan). 

Potential buyers for your business are looking for pretty similar stuff – and if they don’t like what they see, they’ll walk away. Or, they’ll offer you WAY less than your asking price. So, you need to be able to show them…

• Proof that your business is profitable. Incomplete, disorganized, or erroneous financial records don’t inspire confidence.
• Stable or growing revenue trends. Even if you are profitable, bad accounting makes it look like you aren’t. And that lowers your valuation – meaning you could lose out on thousands of dollars in the final sale price.
• Records of liabilities and risks. Buyers need to see a clear picture of your business’s financial commitments, like loans, agreements, and other obligations. If these aren’t well-documented, they’ll consider your business a high-risk investment.
• Financial systems for the buyer to inherit. Your buyer is purchasing your entire business operation. If your accounting processes are nonexistent or outdated (or completely dependent on you personally), it makes your business almost impossible to transition.

Fixer-upper-ing your accounting
If you’ve got a meeting with lenders or buyers coming up (or would like to put one on the calendar this year), here’s what you need to do to get your accounting into shape:

Step 1: Gather all your financial documents.
(Bank statements, credit card statements, invoices, receipts, payroll records, tax documents, loan agreements, leases, contracts, P&L  statements, balance sheets, and cash flow statements.)

Step 2: Pick your method. Cash-basis accounting recognizes income and expenses when money actually moves in or out, while accrual-basis accounting records transactions when they are earned/incurred. (Quick tip: Lenders and buyers prefer businesses that are accrual-based.) 

Step 3: Start recording every transaction.

Step 4: Set up a clear filing system.

Step 5: Clean up your financial statements. Make sure all your revenue and expenses are recorded and categorized correctly on your P&L statement, that your balance sheet lists all your loans, credit lines, and outstanding debt, and that your cash flow statement tracks in detail how cash is moving in and out of your business.

Step 6: Calculate your debt-to-income ratio. Divide your total monthly debt payments by your monthly gross income (you’re aiming for a ratio below 36 percent).

Step 7: Reconcile your accounts regularly to make sure your accounting records match your bank and credit card statements. I recommend doing this monthly (or weekly, if you’re in your industry’s busy season) to catch errors and fraud before they snowball.

In all honesty, my best piece of advice here is to invest in a professional accountant. And no, I’m not just saying that because I want to make a dime. The legal liabilities of not having good accounting in your business are huge, not to mention the strategic missteps you’ll likely make. 

Why? Because you’re not an accountant – and that’s okay. You didn’t start your business to become one. So let someone with expertise you can trust handle this for you:
calendly.com/hayescpapllc

Here to lighten your load,

Daniel Hayes

The post Opportunities Wilmington Business Owners Will Miss Without Accounting Basics appeared first on Hayes CPA PLLC.

During your latest grocery shopping trip, were you standing bug-eyed in the dairy section, gawking at the price of eggs? In the latest egg news, the U.S. is now looking to Turkey (how’s that for irony?) for help importing record-breaking amounts of eggs. 

That’s a major pivot in the global supply chain. And, it’s a reflection of a greater principle of business (that you’re likely familiar with): When unexpected challenges arise, you have to get creative.

Expensive eggs are pretty miniscule compared to the economic giants your business is facing right now (unless you own a breakfast joint). Looming tariff hikes on imported goods and raw materials and other economic factors out of your control could easily put your business on the rails… but they don’t have to. 

It’s up to YOU to get creative finding ways to absorb the consequential costs – whether that’s by finding new suppliers, adjusting your pricing, or cutting your expenses. And if you’re currently facing a creative block, let’s talk. I’m here to help you brainstorm the best solution for your Wilmington business: 

calendly.com/hayescpapllc

All that to say, managing your cash flow is crucial to keeping your New Hanover County business afloat in the economic misfortune you and I are currently experiencing. 

Because strong cash flow management isn’t just about covering payroll and bills, it’s about weathering challenges. And then, when the storm has passed, having the financial insight to move your business forward.

Analyzing Cash Flow Is a Must for Your Wilmington Small Business
“We are surrounded by data, but starved for insights.” – Jay Baer 

Running out of cash unexpectedly. Floundering financially every time an unexpected emergency comes up. Feeling stuck because you don’t have extra cash free for expanding your business. 

Are these familiar scenarios for you? 

It’s an exhausting (and not very profitable) way to run a business. But it’s how a lot of business owners operate. Because what they don’t understand is, these scenarios are outward symptoms of a greater problem: failure to analyze cash flow. 

Good cash flow management is more than just making sure you’ve got more cash coming in than going out, though that’s the baseline. It’s also looking at where that cash is coming from, where it’s going in your business, and how you can better allocate it to achieve growth (not just maintain the status quo). 

Why analyzing cash flow matters

To put it simply, you need to analyze your cash flow so you can have a clear picture of how money is moving in and out of your business. Without that, you can’t make truly informed decisions that will move you toward your financial goals. 

And if you’re struggling financially, analyzing your cash flow gives you the WHY. Once you have that, you can strategize to fix the issues and optimize your spending. 

Analyzing cash flow also helps your business in the long term. Financial crises like equipment breakdowns, seasonal fluctuations, or economic downturns won’t take your business down – because you’ve the extra funds on hand to help you handle surprises. 

What to look for

You need to pull out your cash flow statement (and your detective’s hat). And if you don’t have one for your business, it’s time to make one. It’s a necessary tool for understanding what’s available to you. (If you’re unsure how to make one, I can help you get started.)

If your cash flow statement indicates a negative net cash flow, you’re sleuthing out the reason why. And if it’s positive, don’t put your feet up – you need to look to make sure your financial habits are fully aligned with your business goals. There are always more ways to optimize. 

Either way, look over each category of your cash flow statement and ask yourself (and possibly your team) some questions…

Operating activities 

• Are there any large, past-due accounts posing a risk to our cash flow? 
• Are we effectively controlling our fixed operating expenses? 
• How are our variable expenses changing in relation to sales volume?

Investing activities 

• What is our inventory turnover ratio, and how does it compare to industry benchmarks?
• How are new opportunities affecting accounts receivable, accounts payable, and inventory?
• Is increased inventory from purchasing new equipment too expensive?
• Did new equipment actually cost what we initially projected, or are unexpected expenses setting us back?

Financing activities 

• Do we have any variable interest rate loans? If so, what is the impact of potential interest rate fluctuations on our cash outflows?
• Are we taking advantage of opportunities to refinance debt at lower interest rates or more favorable terms?
• Are we using short term debt to fund long term assets?

Just analyzing your cash flow statement won’t fix your problems or move you toward your business goals. But it will help you pinpoint exactly WHAT your next step needs to be, saving you from guesswork and troubleshooting. 

My team and I are here as a support system for you, no matter where you’re at with analyzing your cash flow statements. Whether you can’t seem to figure out how to turn your negative cash flow into a positive, or you’re unsure what to do with your surplus, let’s talk:

calendly.com/hayescpapllc

Happy analyzing,

Daniel Hayes

The post Analyzing Cash Flow Is a Must for Your Wilmington Small Business appeared first on Hayes CPA PLLC.

So, it looks like the Treasury Department has nearly reached a “final” decision on BOI reporting… fingers crossed. And this latest update in the BOI reporting saga is actually good news for you.

FinCEN is now no longer issuing any penalties for failing to make the previously set deadline of March 21st. Instead, the Treasury will propose regulations that apply BOI reporting exclusively to foreign companies, which may shift focus on international accountability.

One thing you can take off your checklist for now. Thankfully…

And, of course, I’ll keep you updated if something changes there. 

Now, since Spring is upon us — the time for whipping out mops and dusters to spruce things up around the house, right? Well, time to do the same for your Wilmington business’s finances, too. Especially with potential volatility coming to your supply chain and any imported goods as tariffs are set to increase.

The cobwebs can hinder you from seeing a clear picture of where your business is at, which then makes it tough to fulfill those goals you set in January. 

Now, no one loves financial cleaning and fine tuning (well… I do, but I’m a numbers nerd). But it is NECESSARY. This is how you save money. 

Now, I have some ideas today about one area that does take up a significant amount of your operational expenses: staffing costs. But chopping payroll isn’t the only way you can save in your business…

Compensation Strategies to Empower Your Wilmington Business’s Employees
“Change is inevitable, except from a vending machine.” – Robert C. Gallagher 

It’s a classic business owner dilemma: as sales increase and revenue flows in, so do the expenses. Sometimes, it’s a subconscious way of rewarding yourself—spending more because it feels like you’ve made it. But if you want to build a profit-driven, growth-minded business, you need to take a strategic approach, especially in today’s dynamic economic landscape.

One of the biggest expenses as you well know is payroll.

But you don’t have to let those labor costs spiral out of control. You can implement the right compensation strategies that manage expenses AND inspire your team. But you have to find that sweet spot where profitability and employee motivation intersect. Consider these.

Link compensation to specific goals
Traditionally, we think of commissions for sales teams, but why stop there? 

Every role in your business contributes to the bottom line, and every role can have performance-based incentives. The key is setting clear, adaptable goals – measurable targets that reflect the current economic realities. 

Think about it…
– a warehouse worker’s efficiency can be measured by units shipped per hour
– a customer service rep’s impact by customer satisfaction scores
– an administrative staff member’s value by project completion rates or cost-saving initiatives. 

By providing real-time performance tracking and automating compensation calculations, you create a transparent system where everyone understands how their work directly affects their earnings.

Also, consider adding variable bonuses that can adjust based on company performance and economic conditions. Then, make sure to regularly review KPIs ensuring they continue to be relevant. If not, adjust as needed.

When employees see a direct connection between their work and their compensation, they’re more likely to stay engaged and productive, especially when they know the system is fair and transparent.

Train your team for success
Continuous training and development is an often underrated and overlooked compensation strategy. Most performance issues aren’t intentional. Often, it’s simply a lack of proper training. 

Don’t just assume your employees know everything. Invest in their development. Use performance reviews to pinpoint skill gaps and provide targeted training. Get their feedback on how they think they could do their own jobs better. 

Also, cross-train your employees to build versatility. Even offer professional development opportunities like specialized courses and certifications. Investing in your team’s growth isn’t just a nice-to-have. It’s a strategic move to garner job satisfaction, loyalty, and improved productivity.

Go beyond the paycheck
In today’s economy, a comprehensive job package will matter. So, including incentives helps. Consider offering… 

• Profit sharing to foster a sense of ownership
• Comprehensive benefits (health insurance, retirement plans) 
• Flexible work arrangements 
• Wellness programs 
• Increased paid time off 
• Equity or ownership stakes (for key employees)

And finally…

None of this works without transparency and open communication. So be sure to share your compensation policies. Empower your workers by making sure they know how pay is determined. Regularly review compensation packages with them. 

And make sure you address the anxieties and needs of your team that economic uncertainty and inflation can bring. 

When done right, compensation strategies help you attract and retain top talent, boost productivity, and align employee success with business success. With these compensation strategies, you can create a workforce that is not only motivated and efficient but also committed to your company’s growth.

Before you can start strategizing, though, you need to have a clear picture of where things are at in your New Hanover County business. How are your books looking? What are your financial reports saying? If you want a clearer picture so that you can start building a business you love, let’s talk:
calendly.com/hayescpapllc

Strategizing for success,

Daniel Hayes

The post Compensation Strategies to Empower Your Wilmington Business’s Employees appeared first on Hayes CPA PLLC.

Can we help you fix this?

Using KPIs For Your Wilmington Business

“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.” – Franklin D Roosevelt

If you measure your key metrics you can manage the performance of your Wilmington business, AND you can see problems well in advance of when they might show up in revenue or profit figures. 

Each and every business has key performance metrics (KPIs), some of which are common to other businesses, some are industry-specific, and some companies create their own KPIs.

These sort of things are our bread and butter when working with Wilmington small businesses.

Can we help?

Financial metrics are often common to all businesses. Some examples include:

* Average transaction value.

* Gross profit margin.

* A measurement of a company’s efficiency during the production process.

* How much is left over after COGS.

* Gross Profit divided by Total Revenue.

* Net profit percentage.

* The amount of profit for every $1 of revenue generated.

* Net Profit divided by Total Revenue multiplied by 100.

* Debtor days or receivable turn days.

* How long your customers take to pay you. (The sooner your customers pay, the sooner you can get that cash working for you.)

* 365 (days in the year) divided by (Sales on credit or invoice divided by Average Accounts Receivable).

More industry-specific KPIs might include:

* Table turns per night.

The number of times a restaurant is able to sit customers at a table.

* Utilization.

The number of hours a machine in the production line can run.

* Rejection rate.

The number of defects rejected in an assembly line.

Non-industry-specific KPIs might include:

* Customers won/lost.

* Customer complaints/product returns.

* Staff sick days.

You must absolutely integrate the RIGHT measurements to get a proper insight into your business’s performance.

I hope this gets your juices flowing. Many of these financial indicators are things that WE can help you to implement … if you let us.

Warmly,

Daniel Hayes
(910) 509-1990
Hayes CPA PLLC

The post Using KPIs For Your Wilmington Business appeared first on Hayes CPA PLLC.

A treasure hunt, if you will.

I thought I would take a few paragraphs to encourage you to get a little more creative over ways that you can do the same for yourself in your Wilmington business.

Are Your Wilmington Business’s Receivables Slowing Down?

“Action is the fundamental key to all success.” – Pablo Picasso

Many different types of Wilmington businesses suffer from the problem of accumulated “past due” receivables. 

And it’s a problem that shouldn’t *just* be addressed by “normal means” (calling, pestering, etc.).

The good news is that you don’t have to accept the normal status quo — you can actually change the way the game normally works. How? Well, I suggest that you use tactics similar to those which WON you the sale in the first place: discounts, premiums for advance or prompt payments, and good old multi-step follow-up.

If you do have (or ever develop) a receivables problem, you’ll need to take this same sort of aggressive action to clean it up. “Preserving the relationship” with a client who can’t (or won’t, more likely) pay his bills is of little value.  And, left alone, collection problems tend to get worse, not better. 

Even large, long-established corporations can find themselves in trouble with their payables. In that situation, you as a creditor could wait years for your money and then recover only a percentage of it. 

So, it’s important that you set into place a *system* for collecting past due accounts.

Because one of the most important lessons that I’ve learned over my years in business is that trends rarely reverse themselves. Trends don’t just change; people change trends.  Waiting, procrastinating, delaying action on a negative situation simply means it won’t change — at least, not likely for the better.

When you get that very first glimmer of something “not right” in your business (especially in a financial area), that’s the time to look closer and take corrective action. Too many people spot the tip of a problem and choose to ignore it, feeling they’ve got enough to handle already, so why go looking for trouble? 

The fact is that you need a bias for “sales” in every area of your business — even collections. 

So, turn your marketing mind onto it. What incentives can you provide to delinquent customers? How can you “cut through the clutter” so that YOU get paid (while other vendors wait … and wait)? Good headlines, conversational appeals, and multi-step follow-ups are good places to start. And “starting” on this issue is the biggest step.

From there, set it into place so it happens automatically.

And then you’ll notice the “trends” changing in your favor.

Warmly,

Daniel Hayes
(910) 509-1990
Hayes CPA PLLC

The post Are Your Wilmington Business’s Receivables Slowing Down? appeared first on Hayes CPA PLLC.

You know what I mean: checking your business bank account daily as a measurement of your business health.

If that’s you, we should really talk.

And before we talk, take a few minutes to read this.

Use These Financial Reports For Business Decisions By Hayes CPA PLLC

A lie has speed, but truth has endurance. – Edgar J. Mohn

Some Wilmington business owners never like to “look under the hood” of their finances, and their accountants or financial partners can sometimes encourage that behavior by keeping them in the dark.

Well, I hope that won’t be you. 

In fact, with our Wilmington clients, we go overboard to provide the kind of insight into financials that they really need to make strong decisions.

One way I’d like to help YOU (regardless of whether you’re an existing client of ours) is by pointing out different reports and metrics that you can find in most accounting software, that business owners or their bookkeepers often neglect. Knowing these numbers will help you avoid an embarrassing flub in YOUR business. 

Even if you are using some of these reports, I’m sure you’ll find a few more to add to your repertoire. Of course, this is just a very basic introduction, but hopefully, it’ll spark some ideas.

1. Profit & Loss Summary Prev Year Comparison: Most business owners rely on the Profit & Loss Summary report, but comparing your results to last year can provide quick insight into whether your revenue is growing or contracting–as well as how fast expenses are rising. 
2. Balance Sheet Prev Year Comparison: As with your income statement, it’s important to compare where certain balances stand now versus last year (such as Cash, Accounts Receivable and Payable, etc.). 
3. Statement of Cash Flows: Profit & Loss reports enable you to see what you earned, while Balance Sheet reports help you determine what you have–as well as what you owe. (However, neither report necessarily provides a clear picture of where cash is coming from, or going to.) In short, this report shows you exactly what caused your bank balance to increase or decrease during a given report period. 
4. Collections Report: Tricky economic times mean it is more important than ever to keep track of your collections. Fortunately, QuickBooks and other platforms make it easy to contact customers with overdue invoices.
5. A/P Aging Summary: Although it’s key to make sure that your customers are paying in a timely fashion, it’s just as important to pay your vendors, too. Unpaid bills can result in phone calls, e-mails, and other unnecessary interruptions. 
6. Voided/Deleted Transactions Summary: It’s no surprise that small businesses are much more prone to fraud than large businesses. Small business employees usually wear multiple hats, so it’s often impossible to separate financial duties (bigger businesses can do this with ease). Fortunately, accounting platforms make it hard for perpetrators to cover their tracks — you’ll be able to quickly identify any transactions that have been deleted from your books. Granted, this isn’t an end-all solution by any means, but it is a helpful management tool. Plus, if a transaction ends up “vanishing” from your books, you can use this report to see who deleted it.
7. Transaction History: QuickBooks or other accounting software will usually display a report that shows the entire history of a given transaction. Think of this as a “report within a report”, as you can only run it in certain circumstances. 

And don’t forget — we’re right here for you if you need us.

Let’s make smart calls together.

Warmly,

Daniel Hayes

(910) 509-1990

Hayes CPA PLLC

The post Use These Financial Reports For Business Decisions By Hayes CPA PLLC appeared first on Hayes CPA PLLC.

Struggling Wilmington Businesses: Careful With Price Reductions

“Despite your best efforts, not everyone wants to be helped. Make a difference where you can and be at peace with the rest.” -Gary Hopkins

It can be tempting for Wilmington businesses to believe that pricing is the primary factor that could be causing problems in their business.

We might hear consumers say, “Well, I would buy it if it were in my price range.” That idea tempts many business owners to lower their prices–just to sell more products.

But price reductions more often create more problems than they solve for a business.

That’s because they:

* Decrease net profits

* Lead to the purchase of lower-quality products

* Increase customer demands to drop the price even lower!

* Require even more sales to make up the difference in revenue

* Need a larger quantity of products

And, in the end, there will always be someone willing to go out of business faster than you.

Remember this: Price is not a benefit. The close of a sale is not determined by the cost of your product. Truly “sell” to your customers and prospects, and they will purchase your products/services no matter what price you determine.

That’s the plain truth — and you’ve probably seen it in your own purchase patterns.

What if a customer or prospect doesn’t buy? And they claim the cost had something to do with it? You can guess they probably wouldn’t have purchased anyway.

As a small business owner, and marketer, your job is to sell your products and services. But the actual art of marketing and selling doesn’t have to do with the price of the product. 

By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.

So, find “real” benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product or service, and you’ve got a customer. Point out their current pain properly, and your contact will do anything to get rid of it.

Set your prices and hold fast. If you’ve marketed correctly, you will still have customers anxious to do business with you.

Price gouging is a horrible thing — but, really, that’s a bogeyman that lives more in our heads than in real life.

Charge your worth. You deserve it.

Warmly,

Daniel Hayes
(910) 509-1990
Hayes CPA PLLC

The post Struggling Wilmington Businesses: Careful With Price Reductions appeared first on Hayes CPA PLLC.