Worcester Business Journal

wbjournal.com | April 15, 2024 | Worcester Business Journal 23 By Emily M. Sricharoenchaikit Emily M. Sricharoenchaikit is principal of Zen Wealth Advisors in Marlborough. Despite the volume of financial information, the importance of going back to basics cannot be understated. 5) Every dollar earned is worth cele- brating. How any person earns income is deserving of dignity and self-worth. There are jobs that pay little and jobs that pay a lot, yet any job done well warrants a sense of pride. Rank-and-file employees who work hard and are proactive about finances can retire just as well as the owner who pays their wages. 4) Habits are ingrained. Building wealth and living off wealth require a shift in mindset, which does not happen overnight. It often takes some coaching and guidance for someone who has been an excellent saver to suddenly start spending in retire- ment. Understanding how to automate income, how it will be taxed, and whether it is enough are the most frequent questions I encounter. 3) Risk is in the eye of the beholder. Risk can be measured in a bevy of ways, however; the real measure is subjective. The most effective way to measure risk is to understand how a client perceives loss. Once that threshold is determined, you can build a sticky portfolio to persist over time. 2) Real wealth is rarely what you see. The biggest house and latest car model are not prime indicators of long-term financial well-being. The wealthiest people I meet live modest lifestyles and use each dollar to pay down debt or put toward an apprecia- ble asset, like real estate, the stock market, or a business. They wear normal clothes, drive modest cars, and are usually straight shooters. They know what they need to live a fulfilling life and focus their time around high-quality people and constantly learning new things. 1) Markets change, but timeless truths remain. The market outlook for 2024 is focused on when the Federal Reserve will lower rates, and next year it will be something different. It has never been so easy to participate in the market, with the advent of fintech and countless apps allowing you to invest with a swipe on the phone. Yet, the ways in which to build long-term wealth have remained un- changed: invest early and often, and live within your means. It's not easy, but it's simple and requires patience. How Greater Worcester small business owners can find success in 2024 BY SLOANE M. PERRON Special to WBJ I n 2022, the U.S. Internal Revenue Service collected $475.9 billion in income taxes from businesses, with 81.2% of all filings completed elec- tronically. Whether you file your own taxes online or use an accountant, here are some tips to help make tax season easier. Separating your personal and business expenses is the first step to organizing your accounts. Opening a business-only credit card is one way to make tax prep easier since all business expenses are recorded on one card. A business card allows a company to build credit, track expenses, and increase future borrowing potential through good credit, says Katherine Fan from NerdWallet. She recommends establish- ing an accounting-exclusive email to further separate incoming bills. Regular financial checkups make bookkeeping more manageable. Instead of trying to do your bookkeeping all at once, do it consistently throughout the year. Taking bite-sized chunks out of the accounting prep will save you from rushing at the last minute, writes Rieva Lesonsky from SCORE. Early prepara- tion will allow you to rectify bounced checks, double check for errors, and ensure customers have paid overdue invoices. A quarterly, in-depth review will provide the consistent oversight you need to be ready for tax season. Selecting the accounting software right for you. Options such as Tur- boTax, H&R Block, and e-File have brought the accounting office into people's homes. With various prices, tools, and packages, it can be hard to select the right accounting soware for your company. e first place to start is evaluating the available features, such as online support with accounting professionals or integration with your bank, says Adam Uzialko of Business News Daily. "You may also want to determine if the soware can help you easily calculate and pay taxes," he writes. S T R E A M L I N I N G B O O K K E E P I N G F O R S M A L L B U S I N E S S E S BY STEPHANIE MARTIN & CHRIS HUDACH A s the second quarter of 2024 begins, it's a good time for Greater Worcester business owners to reflect on the state of their busi- nesses and the factors mattering most to their success. e most successful companies will be those with leaders who are keenly versed in knowing costs structures, focused on core competencies, and un- derstand the market. ese fundamental skillsets can equate to successful bottom lines, regardless of your specific indus- try or economic conditions. Here are a few steps to start the new year strong. Update your business plan Regularly reviewing and adapting your business plan is critical to ensure you're operating in a realistic and nim- ble manner. Keep in mind these best practices. • Compare last year's business perfor- mance to prior years by checking sales results and marketing tactics to spot trends. is will help determine the best strategies in 2024. • Keep your budget in mind, and ensure you are updating salaries, your projections, any fixed costs or money you've used to grow your business over the past year. • Source feedback from others when updating your business plan. Speak with your employees, your customers, and fellow business owners to get a sense of what's working well and what needs to be changed. • Evaluate your customer service offerings. You want to make sure you're keeping the customer happy, so look at your strategies, such as loyalty pro- grams, to ensure you're creating repeat customers. Evaluate your working capital One resource almost all business owners will need is capital, be it from efficiencies and cost reductions or from your bank or the U.S. Small Business Administration. Despite demand, entrepreneurs face difficulties accessing capital. Traditional bank loans may feel like the strongest capital source, but it's important to consider it might not be the best fit for your business. SBA busi- ness grants not needing to be repaid can help bolster your small business financ- es. Community development financial institutions can be helpful sources of capital for underserved entrepreneurs. Recruit and retain talent It's important to evaluate your hiring or retention processes, as nearly half of small business owners are impacted by labor shortages, according to Bank of America's 2023 Women & Minority Business Owner Spotlight, oen leading to entrepreneurs working more hours and raising wages. Whether it's sourcing candidates, setting a clear employee growth timeline, or creating an intern- ship program, businesses can explore various ways to bring candidates to the interview table. As talent acquisition grows increasingly competitive, our bankers have been working with more businesses to offer benefits packages as additional ways to recruit and retain top talent. e new year is also a great time to recognize your current team to set a pos- itive tone for the year ahead. Take time in the new year to set S.M.A.R.T. expec- tations and goals, meaning goals that are specific, measurable, achievable, relevant and time-bound. If you didn't already, it's important to acknowledge the great work your team did in the prior year, which can serve as a motivating factor for growth in 2024. 5 Things I know about … ... Still overlooked money basics W W W Stephanie Martin is preferred business banking manager, and Chris Hudach is small business banking manager at Bank of America.

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