There's much more involved in handling your company's bookkeeping and finance needs than meets the eye. Here's how to find a team of qualified professionals.

We live in a world of specialists. As a business leader, you recognize the importance of hiring people with the knowledge base and experience to fill specific roles in your field. During a building project, for example, a commercial builder might hire an architect, plumber, electrician, roofer, drywall installer, masonry contractor and other support people.

You know what a commercial builder won't do? Hire one person and expect them to do all of those jobs. And yet, when it comes to enlisting various forms of operational support, including bookkeeping and finance staff, that's effectively what many business leaders do.

There's a much better way.

Although COVID-19 has created obstacles for overseas companies to set up U.S. subsidiaries, it has also presented possible opportunities to pursue.

The coronavirus pandemic has had a catastrophic impact on the world's economy, with some sources forecasting a decline of up to 8.8% in global GDP this year. In addition, ongoing travel restrictions prevent entry to the United States from many countries, which may have disrupted plans at some international companies to open subsidiaries here. (As a general rule, opening a U.S. subsidiary requires obtaining a U.S. bank account, which must be done in person.)

Even so, there are glimmers of optimism amid the gloom. The pandemic has also revealed new opportunities, especially for companies that specialize in technologies that enable e-commerce, telemedicine and remote learning. For international companies in those fields, the U.S. market could be more receptive than ever. Here's what you'll need to know about starting a U.S. subsidiary.

Although it lasts just four days, the annual Telluride Film Festival (TFF) requires a year-round staff — and roughly 300 employees during festival season. Adding to the logistical challenges, the nonprofit that operates the festival is based in Berkeley, California, while the event itself takes place in Colorado. Moreover, each year the organization needs to be ready to cover major upfront expenses along with a flurry of event-related vendor invoices.

That all added up to a unique bookkeeping challenge — particularly for a nonprofit that was still using traditional paper-based processes and offline systems. So when TFF's long-standing bookkeeper retired, the organization jumped at the chance to modernize its back-office operations.

A Premier Nonprofit Bookkeeping Solution
TFF accomplished all its goals and more by outsourcing its bookkeeping and back-office operations to Supporting Strategies. First and foremost, Supporting Strategies successfully transitioned TFF to a set of integrated online tools to eliminate cumbersome paperwork and enable administrators to securely share financial information through the cloud in real time.

A local IT expert, Holden Watne from GenIX, caught our eye with his recent blog post, "Embracing Technology for Greater Productivity in the Architecture Industry."

We see obvious parallels here. Since 2004, Supporting Strategies has embraced the power of technology for greater productivity in bookkeeping and back-office support. Just as modern architects have moved beyond drafting tables and cumbersome physical blueprints and into the digital realm, leading outsourced bookkeeping service providers leverage cloud-based software tools to reduce paperwork and increase efficiencies.

Let's look at the many ways in which outsourced bookkeeping services are a perfect fit for forward-thinking architecture firms.

By Promoting a More Efficient Use of the Architect's Time
Modern architects juggle multiple projects and responsibilities. They'll embrace solutions that enhance their mobility and let them collaborate seamlessly with clients and key team members from the office, job sites and home.

The leader of a growing company needs eyes in both the front and back of their head. They must look forward to project cash burn and capital needs to support their growth. But solid financial projections require reasonable assumptions rooted in past performance — sales growth, profit margins, fixed vs variable costs, cash flow and other key performance indicators (KPIs).

The fact is, you can't do a good job of planning for the future (forecasting) without timely, accurate and thoughtful scorekeeping (bookkeeping) to give you clear insights about the past.

Looking Forward and Looking Back
"Scorekeeping" and forecasting call for different sets of skills. In some larger companies, they're even organized as separate teams: an accounting team that keeps score and a finance team that analyzes results and forecasts ahead.

This was not the usual request for vacation time. When she joined Supporting Strategies | Los Angeles, Financial Operations Manager Mary Rose informed me that at some point she'd need about three months off to row a boat across the Pacific Ocean. All by herself.

For a lot of employers, that would have been a deal-breaker. In fact, Mary, 48, had had to quit an earlier job the first time she took on the Pacific.

But Supporting Strategies is different. Yes, one reason we've been named to Entrepreneur magazine's Fastest-Growing Franchises list is that we consistently deliver top-notch customer service that puts the client first. But another key component is that we provide a flexible work environment for experienced bookkeeping professionals, with redundant systems and cross-training that give our team members the freedom to pursue their passions without giving up their careers.

Mary, Mary, Row Your Boat
Now, you might think that someone who sets out to row across the Pacific Ocean would have a track record of competing in extreme sports, or would at least be an elite athlete. But that's not the case here. Mary, a native of the Australian island of Tasmania, became a long-distance rower after attending an inspiring talk by Roz Savage, who used ocean rowing to raise awareness of her environmental advocacy.

A recent U.S. Supreme Court decision that has been hailed as a victory for tax collectors could also be a blow to small businesses. If you conduct online sales to out-of-state customers, you need to start paying close attention to laws regarding sales/use taxes (SUT) in every state where you do business.

Before the Wayfair decision, the same laws governing mail-order sales also applied to sales made through the internet. In other words, if you ran a business in California that made online sales to New York residents, you weren't obligated to collect New York sales tax because you didn't have a physical presence (or "nexus") in that state.

California businesses might soon need to overhaul their staff compensation models, thanks to a ruling from the state's Supreme Court that sets a more rigid standard for determining "independent contractor" status.

As detailed here, the ruling puts the onus on employers to prove a worker's independent contractor status by satisfying all three components of a rigid new "ABC" test.

According to the court's decision, this test presumptively considers all workers to be employees, and permits workers to be classified as independent contractors only if the hiring business demonstrates that the worker in question:

1. is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;
2. performs work that is outside the usual course of the hiring entity's business; and
3. is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Originally published on the Hackler Flynn & Associates website.

On April 30, 2018 the California Supreme Court issued an opinion that makes California one of the least hospitable jurisdictions in the nation for utilization of independent contractors. As a result, many companies that were in compliance with the labor laws in California related to independent contractors yesterday may be out of compliance today.

The ruling came in a case originally filed in Los Angeles County Superior Court by a worker named Charles Lee. Lee claimed that Dynamex Inc. improperly classified him as an independent contractor. The case drew attention from the media and legal minds alike because it involved the hot-button issue of independent contractor versus employee. The distinction is that an employee is subject to wage and hour laws and entitled to benefits such as workers’ compensation.

The key to an effective business services relationship is for each side to make a good-faith effort to understand the other's goals, priorities and methods. Here are three simple ways to meet that objective.

1. Manage Expectations
For service providers: Be very clear about your available scope of services, working hours, turnaround times and pricing. While there are some areas where they can be more flexible and adapt to a client’s specific needs, sophisticated service providers should primarily stick with a set of core processes, systems and protocols that they work best with for optimum efficiency and results.

Focus on what you can do exceptionally well and be transparent about what you can't. Put yourself in your client's shoes and understand the intended value of your relationship from their perspective. Also, take time to clearly communicate what you expect of your clients to enable a productive, collaborative relationship.