Category: Personal Finance

Five Financial Tips to Help Grow Your Small Business

Siân Killingsworth / 4 Apr 2019 / Personal Finance

Financial management – especially for small businesses – can be a daunting task. That is why at Ubiquity we have made it our purpose to help make your retirement savings work for you. Our organization specializes in selling 401(k) plans to small businesses and entrepreneurs.

401(k) plans help small businesses attract and retain the best of the best employees. More importantly, small business owners can make good financial sense with a 401(k) plan without incurring additional training requirements and risk associated with inexperienced workers.

Since 1999, we have established several diversified 401(k) plans to help grow small businesses. We pride ourselves on each retirement consultant having knowledge and experience in retirement savings and financial management. Our unparalleled commitment to helping our clients is unmatchable.

That is why during this Financial Literacy Month, we offer these exclusive tips to help you in your business growth.

#1. Simplify your accounting process with streamlined tools.

The most crucial aspect that comes with owning a small business is the accounting process. It involves accurately documenting financial transactions in a comprehensive and systematic manner. The steps involved include:

• Opening a bank account
• Tracking your expenses
• Developing a bookkeeping system
• Setting up a payroll system
• Analyzing any import taxes
• Coming up with ways to be paid by clients
• Establishing sale tax procedures
• Calculating your gross margins, and
• Evaluating your business methods.

Accounting is of paramount importance as it helps put complicated financial transactions in a format that can be easily understood. Not surprisingly, it can definitely also be one of the most boring and annoying parts of running your own business. In fact, almost half of small business owners said bookkeeping was their least favorite task.

And the more time the business owners spent running their businesses, the more they loathed the task — 58 percent of business owners working 60 or more hours a week said that bookkeeping was particularly draining.
-Entrepreneur

Luckily, there are lots of all in one accounting tools out there to help manage your small business financials like Intuit Quickbooks, Freshbooks, and Sage.

#2. Sales Forecasting is Paramount. 

This process entails estimating future sales. Every business must anticipate its viability in the coming years in order to make adjustments accordingly. Since 1999, Ubiquity has helped many small businesses to make informed retirement decisions based on long and short-term performance.

It is easier for any profit-oriented organization to forecast its future by use of its past sales data. This begs the question, “what about new businesses that do not have sufficient past sales information?” Of course, these setups can use advanced methods such as competitive intelligence and market research techniques to make a sales forecast.

#3. Tighten up your cash flow management

Cash flow management, as the name suggests, involves tracking the money coming in and out of a business. This process helps in the prediction of how much money will be in your company in the future. Notably, it helps to know how much money a small business will need to cover its debts. The process entails:

• Measuring the cash flow
• Improving receivables
• Managing payables, and
• Surviving shortfalls.

Cash flow management is vital because it helps business owners in maintaining running capital. It’s important to know your breakeven point (where your revenues meet youur expenses) and to pay attention to it as you grow your business.

#4. Streamline your human capital management 

Human capital is a fancy term used to skill and experience gained by individuals that is crucial to a small business. It involves a measure of education, capacity, skills, and attributes that affect an employee’s earning potential and productivity capacity. Luckily there are an incredibly wide range of cloud-based solutions to help simplify your all your HR tasks. Make sure to take your time when comparing HR solutions and review all the details to make sure you find a product that gives you exactly what your small business needs.

#5. Keep Up With Paper Work

The Power of Balance Sheets and Profit Loss Statements

Balance sheets are an accounting tool which is a statement of business’s liabilities, assets, and equity at a particular point of time. In simple terms, it explicitly provides a financial position (net worth) of a small business at a moment in time. This data helps keep track of company performance because it covers all the operations of a business.

A Profit Loss Statement (sometimes called a P&L statement) outlines the costs, expenses, and revenues incurred during a certain period. This duration can either be a fiscal or calendar period, quarterly or annual interval. It is synonymous to the income statement and outlines an organization’s financial position. Sometimes people confuse P&L statement with a balance sheet, but as you can see, they are nothing alike.

Overall, the aspects above are very crucial for any business, but especially for the small business owner.

Want to learn more about retirement planning for small business? Get the Definitive Small Business Guide to 401(k) 

How’s Your Financial Health?

Siân Killingsworth / 15 Aug 2018 / Personal Finance

We all get check-ups to make sure our bodies are well and tune-ups to make sure our cars are running smoothly. But when was the last time you checked in on your financial health? If it’s been a while, we’ve got some tips to help you get started.

1. Dust Off Your Budget

If you haven’t been following a budget lately, now is the time to jumpstart the habit. A budget is your best tool for tackling any financial difficulties and achieving goals for future you! Budgeting lets you plan how you want to spend your money, while tracking your spending habits. When you track your spending consistently and stay on budget, you can start making things happen so that you reach your financial goals. Budget apps like Mint make it easy to connect to your bank account and see where your money goes. After you’ve done that, it’s up to you to split your income between bills, necessities, savings, and fun.

If you’ve already set up a budget, this step should be simple. Take a second look at where your money goes. It’s easy to overlook your gym membership getting more expensive or your car insurance going up a couple bucks. Those types of changes can add up quickly and have a big impact on your financial life.

No matter your starting point, once you’ve gone through your budget, it’s easier to search for places where you’re overspending. Are you really using all of your subscription services? Do you need to be celebrating Taco Tuesday that often (and did you need that extra margarita)? Can you stream a little less and get a smaller data plan? Try it! We believe in you.

2. Set it and Forget it!

Have trouble saving as much as you should? You’re not alone! Consider harnessing the power of automatic savings contributions. Having money taken out of your paycheck before you see it, streamlines the savings process and curbs temptation. It’s hard to spend money you don’t gain access to, whether by having money from each paycheck filter directly into a savings account or into your company’s 401(k). If you already have automatic deposits set up for your emergency fund and retirement accounts, nice work! Now consider increasing your contributions.

Once you automate your savings, take it a step further and automate your bill pay. You should always review your bills for accuracy, but paying at least some of them automatically will save you some hassle—and ensure your payments are always on time. To prevent any account-draining surprises, you may find it better to only automate bills that are the same every month (like your cable bill), rather than ones that vary every month (like your credit card bill).

3. Give Your Credit a Checkup

Credit Scores are often used as the barometer of your financial health. The higher your score, the more financially stable you seem. Knowing your credit score is essential—in the words of the old Schoolhouse Rock cartoons, “Knowledge is Power”. Even if the number isn’t as high as you’d like, your financial picture can’t get better until you have a picture of where you’re starting from.

Approximately 36 billion pieces of credit data are reported every year, so reporting mistakes are nearly inevitable. Since errors in your public records, personal information, and credit accounts can cause your credit score to tank, it’s important to keep a close eye on your credit. Any credit accounts listed that don’t belong to you could be a tip-off to identity theft or credit card fraud.

Luckily, you can request a free credit report every year from each of the three major consumer reporting companies (Equifax, Experian and TransUnion). Or do it our favorite way, which is to request one free report from a different bureau every four months and monitor your credit throughout the year.

So, what’s on your financial to-do list? If it’s learning about retirement options, we can help! Learn how you can get on the path toward a financially secure future with Ubiquity

4. Take a Peek at Your Debt

It’s really easy to put your head in the sand and not acknowledge the debt you have. Look at your credit card balances and other loans. Has your level of debt changed since the last time you checked? If it has decreased, way to go! You’re on your way. If it has increased, maybe it’s time to look at your budget again and find where you’re overspending. This is also a good time to check your interest rates,and see if you’re in a position to save by refinancing.

5. Review Your Retirement Plan Contributions

There’s no question that saving consistently for retirement is an important step toward a more financial future.  By starting to save as much as you can now, you will have the freedom to choose how you want to live when you retire. And since your 401(k) contribution comes out of your check pre-tax, you lower your taxable income. In a way, it’s like paying for your 401(k) with money that you otherwise would have spent on your taxes. In 2018, you can contribute up to $18,500 to your 401(k) if you’re under 50 or $24,500 if you’re 50 or older.

Want More Money in Retirement? Cut Down on Taco Tuesday

Siân Killingsworth / 28 Feb 2018 / Personal Finance

As tongue and cheek as this may be, it’s easy to nickel and dime your way out of retirement without even knowing your doing it. Want to know how? Check out this infographic on how you can save hundreds of thousands of dollars in your retirement by eating a few less tacos.

5 Easy Tips to Make Tax Time Less Taxing

Siân Killingsworth / 18 Jan 2018 / Personal Finance

This year’s tax time deadline is April 17, 2018. To help you prepare, our partner, TaxAct, compiled these effective time and money-saving tips.

1. File now rather than later! Rushing to finish your taxes at the last minute can easily lead to avoidable typos. If you’re waiting to file because you owe taxes, you can e-file now – just schedule your payment anytime before April 17. Filing earlier can reduce your chance of tax return identity theft. The sooner your return is filed, the less opportunity there is for someone to file a fraudulent tax return using your name and Social Security number.

Reminder: Calendar year S and C corporation returns are due March 15. Personal (form 1040) and partnership (form 1065) returns are due April 17.

2. Get organized. Gather all your tax forms, statements, and receipts you will need before you start your taxes. You’ll finish your taxes faster and more easily. A simple way to make sure you don’t forget anything this year is to use your 2016 return as a reference.

3. Don’t pay too much to do your taxes. In just a few minutes you can compare the top DIY brands but don’t forget to ask these questions. How much is their product? Does that include the forms you need for your tax situation? Does that price include your state income tax return? Remember, since you don’t typically pay until you’re ready to file, you can take most online products for a drive.

Bonus for our blog reader: Save on TaxAct’s individual, partnership and corporate tax filing solutions now at www.taxact.com/ubiquity.

4. Double check your return for typos. Before you e-file, make sure this important information is correct on your return:

1. Birth dates
2. Social Security numbers
3. Names, especially of dependents – must be identical to what’s on Social Security cards
4. Bank routing and account numbers

5. Choose the fastest path to your refund. E-file and choose direct deposit to get your refund the fastest way possible. The IRS issues more than nine out of 10 refunds in less than 21 days.

Learn how you can lower your taxes in 2018 with a small business or solo 401(k) plan from Ubiquity

Brush Up on Your Savings Skills With These 5 Twitter Chats

Siân Killingsworth / 16 Jan 2018 / Personal Finance

The New Year is is a great time to check in on your financial plan, make sure you are on track to meet your goals and get a head start on the path to your retirement security.

To do this, it’s crucial to consult great financial resources. That’s why we compiled a list of our favorite recurring TweetChats that offer tips and success stories from some of the best minds in finance.

1. Experian #CreditChat

Every Wednesday at noon PST/ 3 p.m. EST, use #CreditChat to follow a panel-led discussion hosted by @Experian about all things personal finance. Ask questions and learn smart strategies to manage student debt, credit scores, retirement savings and other timely topics.

2. Wise Bread Chat

Looking for creative or DIY ways to save money? Follow #WBChat on Thursdays at noon PST/ 3 p.m. EST to learn how you can take back control of your resources to reach, and even exceed, your financial goals.

3. MoneyChat

Led by personal finance expert and coach @DorethiaKelly, this biweekly chat takes place every first and third Monday of the month at 5 p.m. PST/ 8 p.m. EST. Follow #MoneyChat for the latest in business trends and personal finance advice.

4. BizHeroes

If you’re an entrepreneur interested in starting or running your own business, tune into this weekly chat on Tuesdays at 11 a.m. PST/ 2 p.m. EST. #BizHeroes covers a wide variety of small business topics, such as tips for running a business on a tight budget. This chat’s objective – help small business owners succeed!

5. #CashChat

Brush up on how to maintain healthy relationships with your money and credit by tuning into #CashChat. Tarra Jackson, aka “Madam Money” hosts this chat every Friday at 9 a.m. PST/ 12 p.m. EST.

Have you participated in any other TweetChats that propelled you or your business to the next level? We’d love to hear about them! Tweet the chat name and the lesson you took away from it to @UbiquitySavings.

Learn everything you need to know about 401(k) and retirement with Ubiquity 

Preparing for the Unexpected with Emergency Savings

Siân Killingsworth / 8 Jan 2018 / Personal Finance

Preparing for the unexpected with emergency savings can be difficult, particularly if you don’t have that safety net to rely on. Some of life’s most exciting and scariest moments come from surprises we never see coming. An unexpected expense ­– hospital bills, losing your job, etc. ­– can seriously impact your financial well-being in the moment, and in the future.

To better prepare for an unexpected emergency, we’ve assembled tools to help you build a sturdy financial plan that protects you. Setting up an emergency fund, stepping up your budgeting skills and giving up on bad financial habits are all crucial steps to avoid an unexpected financial disaster.

1. 6 emergency fund myths you should stop believing

It’s easy to make excuses not to save money for a rainy day or emergency fund. Maybe you feel like you’re buried in too much debt, don’t make enough money or saving for retirement is hard enough! But according to this WiseBread article, you are never too young, old, poor or rich to stash away some extra money to prepare for life’s unpredictable twists and turns.

2. Survey: How Americans contend with unexpected expenses

According to this Bankrate study, 43 percent of respondents were forced to reevaluate their financial plans due to an unexpected expense. While you can’t predict the future, you can prepare for all the uncertainties it can bring. Should you dip into your savings, take out a loan, tighten your budget or utilize your credit? Check out this survey to find out what method is best for you.

3. Create a “life happens” fund in addition to your emergency fund

Have you mastered your savings and feel ready to take a break? Not so fast! This Lifehacker article suggests that in addition to an emergency fund, you should have a “life happens” fund for expenses that don’t necessarily qualify as emergencies, such as routine health care costs, car repairs or veterinary bills. That way, you avoid depleting your emergency stash and have the reassurance that you are covered for any minor snags.

Learn How to Stop These 3 Bad Financial Habits

Andrew Meadows / 6 Jan 2018 / Personal Finance

Everyone is guilty of falling into bad habits, especially given the fast-paced world we live in. While juggling our careers, families and other personal responsibilities, it’s easy to forget to take care of ourselves and we frequently lose focus on long-term goals.

Oftentimes, that lifestyle negatively affects our finances, and before we know it, we’ve fallen into a pattern that threatens to derail our future.

No one is immune to becoming a victim of bad financial habits. Wondering if you are guilty? Here are three common ones that can affect anyone.

1. Ignoring the status of your finances

Whether your finances are stellar or unsatisfactory, it’s important to keep a pulse on them and consult with a professional so you stay in good financial shape. Too often, people bury their heads in the sand and try to enjoy blissful ignorance when it comes to their finances – but it never ends well.

This bad habit affects people on both ends of the spectrum: For example, someone can be in a tremendous amount of debt and may ignore seeking a solution to avoid confronting the realities of their situation. On the flip side, if someone is well off, they may miss the opportunity to save money that is already at their disposal.

The way to overcome this bad habit is to start paying closer attention to your finances. Regardless of whether you’re living paycheck-to-paycheck or if money is no object, you need to be keenly aware of your spending and saving patterns, and, if necessary, adjust them so you’re on the right course.

A big component of this bad habit is that people avoid talking about money with their spouses and families, but this is an extremely dangerous rut to fall into, especially for those who are in trouble financially – staying hush-hush won’t solve your problems.

While these conversations can be uncomfortable, it’s important to make them happen.

2. Believing you’re already maxing out your savings

Sometimes, when peoples’ finances are in a good spot, they get complacent and start to spend frivolously. It’s certainly important to reward yourself for your hard work, but you should also focus on saving extra money when you can.

You might be tempted to spend bonuses, tax returns and other windfalls on vacations or shopping sprees when you know you’re already allocating a certain amount to your nest egg. However, don’t get tricked into the mindset that extra cash should burn a hole in your pocket just because you are already contributing to retirement savings.

Find a balance between steadily contributing to savings and enjoying life. Know that you can always stash some extra cash away in a 401(k) (the max contribution limit is $18,500/year for people under 50 in 2018), in an IRA or in a rainy day fund. You never know when it will come in handy!

3. Not updating your retirement savings strategy

Have you recently moved, started a new job, got married or had children? These are examples of times when it is important to check in on your financial plan and make sure your retirement savings strategies are appropriate for how your life has changed. It’s your retirement and it’s up to you to take charge.

While some of these milestones in life can be overwhelming, it’s important to ask yourself: What can I afford to save? There is certainly a domino effect to outdated savings strategies that don’t reflect your current and future life and those in it. If you don’t take the opportunity to revise how you save now, you could be missing out on keeping hard-earned dollars down the road.

Download Ubiquity’s Definitive Guide to Small Business 401(k)

Can You Take a Loan From Your 401(k)?

Andrew Meadows / 2 Jan 2018 / Personal Finance

This week’s question comes from Casey who asked whether you need a spouse’s consent before taking a loan from your 401(k).

While we always stress the importance of leaving your money in your retirement account, sometimes unforeseen expenses arise where you need to borrow or loan yourself money. Here, we answer Casey’s question and give some other great tips on the deal with taking a loan from your 401(k)!

Get more on 401(k) by downloading our Definitive Small Business 401(k) Guide

Finance is Personal

Siân Killingsworth / 20 Nov 2017 / Personal Finance

It’s easy to become overwhelmed with information being thrown at you about retirement and personal finance. But finance is just that– personal. Finding the right information for you and The Future You is easier said than done, but it’s important to make time to educate yourself and learn more about the issues that can affect you.

The stories in this week’s installment reveal how finance impacts everyone differently. As you’ll see, there are tough questions that all people – regardless of gender, age and job status – need to ask in order to successfully plan the retirement of their dreams.

1. Are Millennials financially doomed?

Millennials, time is on our side when it comes to saving for retirement…right? According to this CNBC article, we Millennials face more financial constraints than Gen X or Baby Boomers, and time might not be enough to reverse the damage. Taking care of aging parents and dealing with lackluster wage growth and staggering levels of student debt is taking a toll on our financial futures. However, we can reclaim our financial independence, and this article can help!

 2. $13 trillion retirement gap called a gender crisis

We’ve all heard of the gender wage-gap, but how much of an impact does it have on retirement? According to Sallie Krawcheck, a former executive at Bank of America Corp. and Citigroup Inc., a whole heck of a lot! This Bloomberg article explains how women’s lower earnings and longer lifespans have created a gap between their assets and post-retirement needs that is contributing to an overall $13 trillion retirement gap among Americans. This article offers details on what can be done to narrow the gap.

3. How Millennials and Boomers are killing Gen X’s retirement savings

Gen X is often referred to as the “sandwich generation” because they are simultaneously taking care of their kids and aging parents. As a result, they frequently tap into retirement resources to support children with higher levels of student debt and parents with unreliable Social Security income. It’s contributing to a serious deficit in what they need to retire: Members of this generation have saved, on average, only 30 percent of what they expect they will need for retirement! While it may seem like Gen X-ers can’t catch a break, it’s never too late to adopt good financial habits that can help you achieve your retirement dreams.

4. Quiz: we know when you’re going to retire

This Buzzfeed quiz is an awesome example of how personal finance can be fun, entertaining and eye-opening when you get to know your money. Many factors, such as salary, marital status and whether you have kids, affect when you will retire. When weighing your options for retirement, don’t forget the most important question—how do you want to retire? If you make a good financial plan and stick to it, there is no reason to compromise on what’s best for your future you.