Paper Talk

Today we talk about our passion project for the last few months - Paper to Profits! 

When we returned from the Masterclass in Monroe, Washington last year, we met so many incredibly talented paper florists who were hungry for more information on how to transform their hobby into a viable business and build it to last.

So for a year, we mulled over how to deliver the content we knew so well. As female paper florist entrepreneurs with a wide variety of experiences, we have so much experience and skills to pass on to our students and to mentor them, but how? 

And then the Covid-19 pandemic happened and many people lost their jobs or their positions became precarious. We began to reflect on the priorities of our lives and realized that life is too short to live it working in a job that we had no passion for.

So it became clear to us that this was the perfect time to offer a Program that could help our students become their own entrepreneurs, to be their own boss, and to help them live their dream.

We have designed Paper for Profits as a program for people who want to earn a living from paper flowers. It guides them through the beginning steps of forming their business to setting up their bookkeeping to managing their customer relationships. We made sure to share an extensive catalogue of resources, templates, and checklists that we personally use in our own businesses. These tried and true systems will help propel a paper flower hobbyist to turn their passion into a thriving creative business.

Listen to us as we talk about this passion project and what we want all paper florists to learn so they can earn a living making paper flowers.

The launch date for Paper to Profits is May 1st! You can sign up for our newsletter at www.thepaperflorists.org to be the first to know about it. For all of our previous students, we will have a deal for you so make sure you check your Inbox!

April is Financial Literacy Month so it's the perfect time to talk about money with Meka West of Penny Smart Girl! Meka is a certified accountant and she is the founder of online bookkeeping and money coaching firm called Penny Smart Girl. 

April is also the month for tax-deadlines so we are picking Meka's brain today on all things bookkeeping and tax-related! She has generously shared her experience and advice in this Podcast and in this blog post. She is seriously a wealth of information and generosity!

Let’s get to know our bookkeeper friend, Meka West:

1. Tell us about yourself. Who is Meka West?

I’m a Midwest original that moved to Seattle in my twenties. I bought a house at age 21, raised my son as a single mom until he was 12, and have been lucky to work in some great roles along the way.

I believe in living life with a cherry on top. This means creating a life balanced with work but also time to enjoy the things that bring us joy and make us feel. So even you aren’t a fan of cherries, whatever your cherry on the top moment is… the moment that makes you pause and cherish that moment, that’s what I mean. I enjoy cherry on top moments with my husband, my son, our two very spoiled rescue cats, Nin-Nin the secret ninja, and Jackson the mischievous tabby. I also love traveling the world and enjoying yummy food adventures.

2. Tell us about Penny Smart Girl.

Penny Smart Girl is a virtual bookkeeping and money coaching firm.  Penny Smart Girl (nicknamed PSG) was born from my love for empowering people to be more in control of their money story. It doesn’t matter if you like numbers or not, it’s more about getting in touch with the life you want to live. What goals do you have? What kind of work fulfills you? That’s what the numbers can reveal. And that’s what having a handle on your money can unlock.

I consider myself a business owner first, an accountant second. As a business owner first, it positions me to be a small biz advocate and money mentor. 

3. Why might a business owner need a bookkeeper and/or accountant? Why might someone need money coaching?

There’s a common statistic I always hear that states “half of new businesses fail during the first year,” which is alarming to think about the success rate is only 50%. However, the Small Business Administration (SBA) says that’s not necessarily true. They say the more accurate breakdown is:

30% of new businesses fail during the first two years of being open

50% during the first five years

66% during the first 10 years

And at a business conference I attended a few years back, a survey said 89% of small businesses said they were more successful when working with an accounting professional.

I feel that often business owners try to do everything in their business because they are new or can’t afford to hire a bookkeeper or accountant to manage their “books”. But I strongly believe that if you have an accounting professional set up your systems and train you how to maintain it, you really set yourself up for success in the long run.

I’m sure I could maybe figure out how to make home repairs on my own, but it would involve me literally “winging” it. And I certainly wouldn’t feel confident that I did everything right. Because I didn’t go to school for that and home repair is not one of my gifts. So, hiring someone that has been trained in that skill, is going to be my best option.

Money coaching is often more focused on mindset, strategy, and goals. It is something that can be done as a standalone service or in conjunction with bookkeeping/accounting services. Often money coaching focuses on cash flow, budgeting, rolling out new service offerings, and keeping an eye on any income goals you have. 

Working with professionals can really help you to start out on a solid foundation. Start small with a training session and reassess as your business grows and gets too much for you to handle all the moving parts.

4. What bookkeeping/accounting programs/apps should a business owner have/use?

QuickBooks is the standard that the majority of Banks, CPAs, auditors, the IRS are equipped to work with that. I would say Xero is a close second to being a standard/common program.

However – Wave and Freshbooks are nice entry-level software that seems to be user-friendly for non-accountants. I can’t speak in depth on them because they aren’t designed for an accountant like me, but the key is to find a system that works for you that you will use frequently. The results to consider is how easily can it compile the data needed to get your reports to your CPA or yourself at tax time.

5. What important tax deadlines should small business owners in the USA and the State of Washington be aware of?

It’s important to know that taxes do not just mean the IRS (which is federal taxes). There are also city and state business taxes. The deadlines for city and state taxes will vary based on the size and type of business you have.

Federal annual income taxes are due:

Business & Occupation (B&O) Sales/Excise Tax deadline (City/State)

Self-Employment Estimated Tax (Federal, due to the IRS)

This tax is due quarterly. Please note that the quarters are divided so that you actually only pay it three of them during each year, rather than the traditional four quarters per year:

Quarter 1 (covers Jan 1 – Mar 31st)

Due July 15th, 2020 (normally due April 15th but extended because of Covid-19)

Quarter 2 (covers Apr 1 – May 31st)

Due July 15th, 2020 (normally due June 15th but extended because of Covid-19)

Quarter 3 (covers Jun 1 – Aug 31st)

Due Sep 15th, 2020

Quarter 4 (covers Sep 1 – Dec 31st)

Due Jan 15th of the following year.

Link to these dates on the IRS site:

https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2

6. What documentation does a small business owner need to file their taxes?

To file your taxes, you need a listing of all your business sales, and all business expenses for the year you are filing.

Keep in mind that typically states require you to report your gross income, but the IRS considers your income and expenses. So, having the total income earned and total expenses is the best documentation to have.

Remember receipts are just your backup. Tax time is not the time to start organizing your box or folder of receipts. It should be something you do on a monthly, quarterly basis.

Good recordkeeping (or bookkeeping) is the methodology of compiling those receipts, invoices, etc. into a usable report that summarizes your data for you.

If you are using an accounting system, the common reports to use are the Profit and Loss report and a Balance Sheet report. If you are tracking in Excel or a notebook, try to organize it by expense category and by month. I recommend having a summary page that will show a recap of your full year.

7. What are common business expenses that small business owners can deduct from their taxable income?

The common business expenses that they can deduct are:

Car expenses and mileage

Office expenses, including rent, utilities, etc.

Office supplies, including computers, software, etc.

Health insurance premiums

Business phone bills

Continuing education courses

Parking for business-related trips

Business-related travel expenses, including flights, rental cars, hotels, etc.

Postage

8. During this time of economic downturn, what are your top 3 budgeting tips for small business owners?

Especially considering our current events, I would say looking at your budget and doing a bit of spring cleaning is highly recommended right now to keep your business sustainable:

Take care of yourself. Try to stay calm, safe & healthy. It’s okay if business slows down right now. You can use the quieter time to strategize for new opportunities. Or to build more connections within your network for when things pick up again. 

Figure Out what’s the “Cost to Run Your Business” Numbers.

Know your numbers. Calculate the amount of income that comes in each month (if it varies, look at the last 3 or 6 months as an estimate)

Create a list of all expenses each month

Subtracting your expenses from your income is your “bottom-line” aka your profit. That’s the base amount you need to sustain your business.

Minimize Expenses/Maximize Income/Savings

To minimize:

In these uncertain times try to keep expenses to a minimum if you can.

Speak with vendors on putting services on hold or reducing the rates temporarily if possible

Hold off on big investments

To maximize:

If you can reduce spending, put the savings aside to build up a savings reserve.

If there is a new service offering you can create an offer, do it! And if you’re able to keep your expenses low so you can consider this new income source a “bonus” for your business.

9. What else should our listeners, many of whom operate small craft businesses, be aware of with respect to their obligation to file their taxes?

Check with your city and state to make sure what the income threshold is for when you are required to have a permit or business license. Often new and or small businesses think they aren’t a “real” business if they are some large corporation.

Checking this, in the beginning, can save you from penalties or fines down the line.

Here are some links to the Apps that Meka mentioned in this episode:

Avalara (Cloud-based tax software) - avalara.com

Taxjar (Tax solutions for e-Commerce sites) - taxjar.com

Quickbooks (Accounting software, online available) - quickbooks.com

Wave (Cloud-based accounting software) - wave.com

Freshbooks (Cloud-based accounting software) - freshbooks.com

Learn more about Meka and Penny Smart Girl by following her on social media:

WEBSITE | https://pennysmartgirl.com/ 

INSTAGRAM | @pennysmartgirl

TWITTER | @pennysmartgirl

We are catching up with Mike Benson of Carte Fini. Carte Fini is based in San Diego, California and it is an online distributor of Cartotecnica Rossi Italian crepe paper and ships worldwide.

Mike chatted with us on Paper Talk way back when we first started this podcast, on Episode 2. You can read and hear more about Mike on Episode 2: Friends of TPFC - Chatting With the Crepe Paper King.

Carte Fini has been a generous sponsor and collaborator of our workshops. In addition to sponsoring the 2019 Masterclass in Monroe, Washington, Mike also attended our Toronto Workshop in September 2019.

Both of us were lucky recipients of a sample package of the 90 g Italian crepe paper and we were one of the first few to have tested the paper. We are incredibly thrilled to see that it's now available for purchase on Carte Fini's online store.

Today, we talk to Mike about our love for the 90 g and Carte Fini adding Design Master sprays to their product lines.

> In this Episode, we also talked to Mike about being part of our Garden Rose Workshop in Seattle in June. Subsequent to our podcast recording, the Workshop has been postponed due to the State and Federal restrictions implemented as a result of Covid-19.

Learn more about Mike and Carte Fini by following them on social media:

WEBSITE: www.cartefini.com

INSTAGRAM: @cartefinicrepepaper

This year, from February 26 to March 1, 2020, our florist friend and mentor, Alicia Schwede of Bella Fiori and the Flirty Fleurs blog, participated in a floral event by Fleurs de Villes at the Northwest Flower & Garden Festival where she and her team created a floral dress from fresh florals.

Learn more about Alicia when we previously chatted with her on Episode 17: Friends of TPFC: Collaborating with a Florist.

Listen as she talks about this amazing event (which takes place in different cities around the world) and the process of creating her beautiful floral dress.

Learn more about Alicia, Flirty Fleurs, and Bella Fiori by following her on social media:

WEBSITES:

https://www.bellafiori.com

https://flirtyfleurs.com

INSTAGRAM:

https://www.instagram.com/flirtyfleurs/

https://www.instagram.com/bellafiori/

We admire sugar flower artists from afar but sometimes we just can’t help ourselves and want to know more about this craft that is in ways so similar to our own. One of the artists we admire is Nita Komarakul. Nita is the artist behind the beautiful sugar floristry we see on her Instagram account, Pushface. Her flowers are delicate and feminine, with a realism that strikes us with awe every time.

Today we talk to Nita to learn more about her and her art.

First, let’s get to know a little bit about Nita:

1. Who is Nita Komarakul?  

Mother, flower lover, and restauranteur.

2. How did you get started making edible flowers? What drew you to this art form?

In my childhood, my mom always supported me both in arts and musical. Every birthday she always baked a cake for us. All these are influenced me to go into the baking world which first I started from sugar cookies and then came across sugar flowers, driven by a curiosity of how to make sugar flowers more natural and life-like. 

3. Tell us about Pushface. How did you come up with this name? 

It’s from my two French bulldogs which are commonly called PUSHFACE.

4. Do you have a studio space? 

Yes, I have a small room in my house where all my flower was made. 

5. How long have you been in business? 

From 2015 when I started baking, but for sugar flower nearly 4 years. 

6. What services/products do you offer?

We offer both sugar flower workshops, but also birthday cakes and celebrations, also wedding cakes with handcraft beautiful sugar flowers.

7. Tell us about the different mediums you use, eg. sugar, edible clay, bean paste, wafer, etc. 

I have tried all these mediums sugarpaste, edible clay, bean paste, and wafer paper; all of them have pros and cons. My personal preference is the medium that can reflect the petal to look real not too translucent or rigid. The easipaste meets my need: It’s white in colour, flexible and softer but strong enough to hold the shape. This can be rolled extra thin to make realistic flowers.

It dries slower than gum paste, which gives you additional time to do your petals. It also works well in high humidity with no mould, it also reacts very well to colours.

8. What types of workshops (and where) do you offer? 

This year we would like to introduce and expand easipaste for sugar flower lovers more and more.

This year I’m going to teach in Somerset, England in April for an easiflowerpaste class - it is a 2-day class which is suitable for a beginner - you will learn how to make an easipaste from scratch to make a beautiful flower. I will also be teaching in August in Osaka, Japan.

9. What are some of the challenges you've faced in your business and/or art?

Being “ under the priced” - In my country, people still do not value sugarflower art pieces, even though one flower requires both time and skill put into it. 

10. How would you define your artistic style? How did you find your artistic style? What makes your art stand out?

My style is quite natural and life-like with feminine and delicate details. Honestly, I find it from the flower.

11. What advice would you give someone who wants to find his or her artistic style in his/her art?

Find what you like and enjoy it .. create your own self.

12. How do you balance your family with your art?

I try my best to keep my weekend time for my daughter and husband.

Want to learn more about Nita and Pushface? Follow her on social media:

FACEBOOK | www.facebook.com/pushface

INSTAGRAM | @pushface