Your business is growing, and you want to streamline your vendor and payroll operations. There are two types of people expenses: 1099 contractors and W2 employees. 1099 contractors are people or vendors you hire to help with a business problem. You can’t control how and when they do their job. You sign a contract with the contractor with an expected deliverable and hope to get the agreed-upon deliverable. A W2 employee is someone that you can control how and when they do their job. You pay their payroll taxes via your payroll system. They would also receive company benefits such as health care insurance and paid time off.
4 tools you can use to pay your contractors/vendors and employees:¹
W2 Employees & Contractors: Gusto and Justworks
Contractors/Vendors Only: Ramp and Melio
Gusto
Gusto is a payroll and HR platform for small to medium-sized businesses. It’s not free. Most payroll platforms are not free and have a monthly base cost plus a per-employee fee. I do not like dealing with the headaches that come with payroll, as there are many different rules and regulations based on where your employees live. Instead, I would outsource this to a system that will ensure all correct forms and taxes are paid and filed. Yes, you can do this yourself, but it’s best to focus your energy on what will grow the company rather than being bogged down by payroll and HR paperwork.
You can also get healthcare benefits through Gusto for your company. Gusto takes a week to implement if you’ve never had an employee before. It’ll take longer if you have historical payroll and employee information that needs to be entered to make sure everything looks right and the proper payroll taxes are being paid. It can also pay contractors, but I suggest using Ramp or Melio for better details and controls.
Justworks
Justworks Payroll is another payroll platform for small to medium-sized businesses. It’s not free, but it provides the same capabilities as Gusto and allows you to be set up within a week. The only downside is that it operates in fewer states than Gusto. Again, the system will ensure all correct forms and taxes are filed and paid. The difference between Justworks and Gusto is that Justworks has a more extensive payroll product, Justworks PEO, that will allow you access to better healthcare benefits for your team. So, if you want to transition to this product, you can start with Justworks. If you’re looking at costs, go with Gusto, as it’s less expensive on a monthly basis.
Ramp
I’ve discussed Ramp several times as my top option for paying your vendors and contractors. It’s a free system that allows you to pay your vendors via ACH, check, or card and create virtual/physical credit cards for your team. It also allows you to implement controls such as not allowing any bills to be paid unless a second person in the team approves the expense. It’s very easy to set up and can be used within three days. It takes three days because your account has to be approved to be on the system. As a business, you need at least $75K in your bank, as that’s how they calculate your card limit without requiring your personal credit score. If you don’t have this amount yet, you can use Melio to pay your vendors until you need business credit cards for your team.
Melio
Melio is a free system that allows you to pay your bills and contractors via ACH, card, or check. It also allows you to pay your international contractors with a transaction fee as well. It’s straightforward to set up and use from the first day. It syncs with Quickbooks Online, so all bills paid via Melio are already recorded in your financials. Before Quickbooks Online rolled out its native bill pay option, it partnered with Melio. It also allows you to implement approval workflows — making sure the right bills are getting paid and no bills are paid without the approval of a designated manager.
Choosing one tool from each category will solve all your operation needs when paying people. The great thing about these tools is that they integrate with your accounting system, such as Quickbooks Online. So, there will be no double work to ensure all payment transactions are recorded. They will also guarantee you collect the right forms from your vendors/contractors and employees. Nothing is more annoying than finding out you need a form from a vendor you stopped paying eight months ago. Now you must send the awkward email, hoping they respond with the requested form.
About the author:
Anwuli Chukwurah is a versatile finance professional with a track record of starting new finance organizations and scaling them for growth in fast-paced entrepreneurial environments. She has over 6+ years of experience working with small business owners, startups, and nonprofit organizations to help connect finance with their business goals. She aims to ensure her clients become comfortable and adept at navigating their numbers. She works with clients at Woolichooks and writes a newsletter for non-finance folks.
Pamela Chow, a Houston-based entrepreneur-in-training with roots in Tampico, Mexico, is currently pursuing a double major in Business Honors and Finance at the University of Texas at Austin. Inspired by her family’s entrepreneurial legacy, Pamela is actively involved in The Undergraduate Real Estate Society and the Hispanic Finance Association as she works towards her dream of launching a Real Estate company with her two sisters. Outside of her studies, Pamela finds joy in sports, photography, and adventure. As a volunteer at EGBI, Pamela channels her passion for community engagement by making a meaningful impact through her contributions to events and blog writing.
Pamela Chow shares her experience as a volunteer with EGBI.
What is a fun fact about you?
I have an identical twin sister.
How has working at EGBI benefited you professionally and personally?
As a student at UT Austin, EGBI has helped me keep in touch with the world outside of the classroom. Since I am studying business, volunteering at EGBI has helped me learn from business owners in Austin and learn from their unique experiences in starting a business. It has helped me see the reality of entrepreneurship and learn that all you need is an idea and some support to be successful. Also, I have grown as a public speaker by being part of the Toastmasters club on Wednesdays where I learn the critical skill of public speaking alongside business owners in Austin.
What motivated you to volunteer with EGBI?
One of my older friends volunteered here during her time in college and recommended me to volunteer. She told me it was a great way to gain experience while helping my community.
Are there specific aspects of your volunteer work with EGBI that you find particularly rewarding, and why?
One of the most rewarding work I have done is being able to meet some successful business owners to see how they have succeeded. I find it incredible to find out how they took a leap of faith and with the help of EGBI were able to grow their businesses and succeed.
What personally resonates with you about EGBI’s mission and work?
EGBI prides itself in removing barriers and I personally resonate with this because I find it so important to help those in our community that English isn’t their first language. Coming from Mexico myself, I see how difficult it is to communicate your ideas and message if you can’t speak the country’s native language. EGBI helps remove that barrier by connecting entrepreneurs with workshops and people that speak Spanish are willing to support their growth.
What would you say to someone considering volunteering with EGBI?
The people that work here are amazing and truly care about the work they do. Also, helping small businesses in your community is truly rewarding, and seeing them succeed makes you feel incredible!
EGBI provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business. If you would like to support our efforts, please visit our website https://egbi.org/donate/ or email hello@egbi.org to discuss volunteer opportunities.
In today’s digital age, protecting your social media accounts is paramount. With the prevalence of cyber threats, safeguarding platforms like Instagram is crucial. This guide offers step-by-step instructions to fortify your Instagram account against unauthorized access and potential breaches.
Step 1: Enable Two-Factor Authentication (2FA):
Go to your Instagram profile and tap the three horizontal lines in the top right corner.
Select “Settings” from the menu.
Scroll down and tap on “Security.”
Choose “Two-Factor Authentication” and follow the prompts to enable it.
Select your preferred method for receiving authentication codes (SMS or authenticator app).
Save backup codes in a secure location for emergencies.
Step 2: Review App Permissions:
Navigate to your Instagram settings.
Select “Apps and Websites” under the “Security” section.
Review the list of connected apps and websites.
Revoke access for any apps or websites that you no longer use or trust.
Regularly audit your connected apps to maintain security.
Step 3: Set Up Login Alerts:
Access your Instagram settings.
Tap on “Security” and then “Login Activity.”
Enable login alerts by selecting “Get Notifications” and choosing your preferred method (email or SMS).
Receive alerts whenever someone attempts to log in to your account from an unfamiliar device or location.
Take immediate action if you receive any suspicious login alerts.
Step 4: Create a Strong Password:
Visit your Instagram settings.
Select “Security” and then “Password.”
Choose “Change Password” and enter your current password.
Create a strong, unique password using a combination of letters, numbers, and special characters.
Avoid using easily guessable information like birthdays or names.
Consider using a reputable password manager to generate and store secure passwords.
Step 5: Stay Vigilant Against Phishing Attempts:
Be cautious of emails, messages, or websites requesting your Instagram login information.
Verify the authenticity of any communication by checking the sender’s email address or website URL.
Look out for red flags such as grammatical errors or urgent requests for personal information.
Never provide your Instagram credentials to unverified sources.
Report any suspicious activity or phishing attempts to Instagram immediately.
By following these step-by-step instructions, you can enhance the security of your Instagram account and minimize the risk of unauthorized access or data breaches. Remember to regularly review your security settings and stay informed about emerging threats to ensure the ongoing protection of your account.
All you need to know to navigate Excel and Google Sheets as a business owner with little to no experience in spreadsheets.
At some point in your business, you’ll need to open up a spreadsheet to do some calculations, build your financial model, answer questions about your sales, analyze your expenses, determine how much to pay your employees and determine how to price your product.
Before you can use any functions, all formulas start with the equals (=) symbol at the beginning. Once you have this, you’re letting Excel or Google Sheets know you want it to calculate something. You can use many different functions in Excel and Google Sheets, but you only really need to know how to use the following functions to do everything.
Basic Math Functions: Plus (+), Minus (-), Multiplication (*), Division (/)
SUM
COUNT
AVERAGE
IF
Basic Math Functions
Like any calculator, you can use basic math functions such as Plus (+), Minus (-), Multiplication (*), and Division (/) within any cell in your spreadsheet. Once you start with an equals sign, you can reference any cell by clicking on it and then going forward with the basic math functions. If you don’t have a cell you want to reference, you can always type in the numbers you want in the cell and then press enter. The result will show in whatever cell you choose to put the formula in.
SUM
Instead of manually using the plus sign for every cell you want to add up, you can use the SUM function to add up a row or column of cells quickly. The SUM function can add your total annual sales and expenses.
COUNT
If you have an inventory list in a spreadsheet and want to count how many of a particular product you have left, you can use the COUNT function to show the result automatically. This way, you won’t have to count it yourself manually!
AVERAGE
You can use the AVERAGE functions to see, on average, how much you spent on expenses this year or how much you sell monthly. Once you know your average, you can use this number to forecast for the future months what you can expect to make.
IF
The IF function is the more advanced function on this list. It’s unnecessary for you to know as a beginner, but it is necessary if you want to use logical formulas. If your business gives out commissions to employees based on sales, you can use the IF function to tell your spreadsheet to calculate the commission amount if sales reach a certain amount. You can also use the IF function to calculate referral fees based on the number of new customers you closed that month.
As your business demands grow, you may need to use even more advanced functions, but the goal is not to show how much advanced Excel knowledge you know; it’s to analyze what story your financials are saying about your business. As long as you can get to the answer, it doesn’t matter if you only use basic functions. All that matters is what answers you can get to determine your next steps in business.
About the author:
Anwuli Chukwurah is a versatile finance professional with a track record of starting new finance organizations and scaling them for growth in fast-paced entrepreneurial environments. She has over 6+ years of experience working with small business owners, startups, and nonprofit organizations to help connect finance with their business goals. She aims to ensure her clients become comfortable and adept at navigating their numbers. She works with clients at Woolichooks and writes a newsletter for non-finance folks.
Congratulations my dear fellow entrepreneur. You have done what most people just talk about! You have taken the leap and ventured on your own! It’s an exciting journey, but it’s also normal to experience self-doubt and fear along the way. While these feelings can make even the most confident entrepreneur hesitate, they can also be converted into your motivational tool guide.
Wondering how?
Here are 5 powerful tips to help you conquer self-doubt and fear, and propel your business forward:
1. Remember Your Why: What ignited your passion to start this business? Reconnect with your core purpose. Was it to solve a problem you care about? Leave a legacy? Focusing on your “why” will reignite your drive and fuel your confidence. Remember the problems you will solve and never let that purpose be out of sight
2. Focus on Progress, Not Perfection: Even the most celebrated expert was a novice once. This country is full of such novices becoming experts through sheer consistency. Every step forward, every hurdle cleared, is a victory. Focus on continuous improvement, learn from mistakes, and keep moving forward.
3. Find Your Tribe: You are known by the company you keep. Surround yourself with supportive people who believe in you and your business. This could be a mentorship program, online communities for female or minority entrepreneurs, or even a mastermind group of local business owners. Sharing your challenges and celebrating successes with like-minded individuals is a powerful way to combat self-doubt.
4. Embrace Continuous Learning: The business landscape is constantly evolving. Commit to lifelong learning – take online courses, attend workshops, and read books and articles on relevant topics. Most importantly learn from every mistake and set back. Embracing a learning mindset will help you get more confident while navigating challenges and making decisions.
5. Practice giving and gratitude: It’s important to learn to give before you can get. Focus on what you bring to the table, what problem you will solve, who will smile because of you today. Also take a few minutes each day to reflect on the things you’re grateful for in your business journey. This simple exercise can boost your mood and combat negativity.
Remember, you are not alone. Every successful entrepreneur has faced self-doubt and fear. By implementing these tips and believing in yourself, you can conquer these challenges and build a thriving business.
