Why Successful Companies Talk About Their Financials?

Why Successful Companies Talk About Their Financials?

For some, it is too close to taboo – discussing how much people make has always been frowned upon in the workplace and sharing that information in the private sector strikes a chord that smacks of indecency.

WE HAVE TO GET OVER IT!

I’m not suggesting that you start grilling people for financial information about their company, but I will tell you, without a doubt, you need to do some networking about how they handle that information. 

Read More

6 Ways To Get Your Bookkeeping Done Faster!

6 Ways To Get Your Bookkeeping Done Faster!

Look, it’s no secret that the only people who like bookkeeping are bookkeepers.  While the rest of the world is busy on social media, or enjoying a glass of wine after a hard day, bookkeepers are quietly inputting receipts into ledgers, riffling through account statements, and chasing transfers from one account to another.

(We’re kind of strange that way)

For the rest of the world, though, bookkeeping is tedious, stressful, and time consuming.  If you’re not a lover of bank reconciling like I am, then you probably fall into the ‘no love for bookkeeping’ category. Although I can’t teach you to enjoy bookkeeping, I can help you get it over with quicker?

Here are our top six time-saving hacks that can make bookkeeping – or getting us the information for your accounts – that much easier.  Even better?  Once you set these up once, you really won’t have to mess with them again!

Read More

Why Most Companies Struggle To Sell

Why Most Companies Struggle To Sell

In his latest book, Beyond the E-Myth, Michael E. Gerber specifically talks about how small businesses should be built with the idea of serving two distinct customers in a very specific order.

The first customer is not the day-to-day customer – that’s actually the second customer.  Instead, Gerber maintains that your primary customer as an owner and entrepreneur is the one to whom you will ultimately sell the business.  This is the person who falls in love with the concept you’ve built and decides to buy it.

Read More

Need A Corporate Tax Extension Again? Time To Buckle Up!

Need A Corporate Tax Extension Again? Time To Buckle Up!

Okay, it’s just you and I here right now.  Time to be honest with yourself. Did you file a tax extension last year?  Are you planning on doing it again this year?  Is all your bookkeeping caught up and reconciled?

There’s always questions this time of year and as much as I hate to say it, a lot of times, business owners bring it on themselves by not effectively managing their financials the rest of the year.  It might be the so-called “big stuff” like your monthly bills or quarterly taxes or it could be the minuscule things like sales tax or an accurate inventory.  In any instance, those nagging thoughts in the back of your mind aren’t going to go away and as a professional, I’ve got to tell you:  it can all be avoided … but it takes some initiative and some time, two things that are often tough to find when you own a business and find yourself doing everything from the books to the production.  If trying to handle all the books gives you a sinking feeling when you think about it, then you’ve got two choices – let a professional handle it or buckle up for a long ride.

Read More

Why Are You Losing Money? Ask Your Bookkeeper

Why Are You Losing Money? Ask Your Bookkeeper

We hear it all the time “How the heck did we lose money?  It’s been coming in hand over fist!”

Maybe you’ve even said that a time or two.  Here’s the deal – if you aren’t reviewing your business’s financials on a regular basis then you aren’t aware of where the money is or where it’s going.  There’s a couple of moving parts here, too.  First, owners have to have a system in place for them to review those statements.  For retail operations, that means daily, weekly and, of course, monthly reviews in addition to the quarterly and yearly reviews.  Other types of businesses might be able to get by just reviewing weekly and beyond.

If you don’t have a review process in place, then that is a great place to start.

Next, though, is understanding what that review is telling you.

Read More

Get A Grip On Your Balance Sheet

Get A Grip On Your Balance Sheet

Accounting 101 teaches students the very basics of keeping track of expenses and as technology has made it easier, the truth is still that the Balance Sheet has to balance.  All too often we see owners struggle with their money rules and what needs to be where.  There are 3 main components of the overall balance sheet so let’s take a closer look at those and gain a little more understanding of how they all interface.

First things first: Assets.  These Are technically defined as “property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.”  The great thing about assets is that they can provide owners with capital – before, during, and after they are purchased.  This lone fact can allow you as the owner to use these pieces to generate additional capital by physical production – in the case of a manufacturing asset, in terms of securing more capital through leveraging the asset as part of a loan, or by depreciation schedules and the subsequent tax benefits.  In short, real assets offer many different values, all of which can work for the business.

Read More

How Hard Is It To Bring On A New Bookkeeper?

How Hard Is It To Bring On A New Bookkeeper?

If there was ever a gaping variable in business, it’s how long you should expect to spend to get a new bookkeeper up to speed on your company and have them actively providing you the solutions you need.  In our experience, any new client and their company are going to fall into three distinct areas of business development:

  • Concept and Research
  • Startup Phase
  • Established

While these may seem easy to understand, for businesses that are falling into the gaps between these phases, it is critical to know how your bookkeeper integrates.

Read More

Bookkeeping For Multiple Businesses At Once

Bookkeeping For Multiple Businesses At Once

Let’s talk about teeth.  I know what you’re thinking “Teeth?  You’re a bookkeeping expert, not a dentist!”

Yes, I am … but teeth are important to the point I’m going to make.  Nobody wakes up excited to go visit the dentist.  There’s always the fear, even when it’s just for a cleaning, that the dentist will find something that will descend into a tooth-pulling, drill-using afternoon of pain and suffering.

As much as we hate managing one set of teeth, imagine if we had two?  Or three?  Or a dozen sets of teeth to manage all by ourselves?

Read More

Does Your Business Have Magic Pencil Syndrome?

Does Your Business Have Magic Pencil Syndrome?

Many years ago, as I was starting out in this business, I remember talking to a friend who, at the time, worked for a well-known auditing firm.  We were talking about all the many foibles of people that he dealt with and the worst, he affirmed, were those who had “magic pencils.”

I’d never heard the term before and asked him to elaborate.

“Oh, you know, magic pencils – the ones that suddenly make a “5” into a “15” to be able to run a better number.”

Read More

The Art Of Depreciation

The Art Of Depreciation

If there is a “black hole” in bookkeeping and accounting – a place that no light can ever escape from and where nothing is as real as it seems, it has to be the world of depreciation.

It’s almost like the old maps from the Age of Discovery – “Here there be dragons” – where the mapmakers simply didn’t know what was going on and took a guess at what might be there.  Depreciation, like an unknown ocean, has swallowed its fair share of things, but once you take a good look at it with a bookkeeping professional, it isn’t as bad as it seems.  The downside is that many times, owners aren’t sure what to ask or even if an item can be depreciated, so the question is never asked.  If those same owners are using a prepackaged software, they turn a blind eye to the very real opportunities that depreciation schedules can offer them when it comes to cost savings.

Read More

Free Cash Flow Isn't Free

Free Cash Flow Isn't Free

Let’s talk about Free Cash.

Have I got your attention?

Now, when it comes to business, that free cash is really free cash flow and as an indicator of the health of a business, it is a critical metric for any business, but especially so with small or startup businesses.  After all, with 4 out of 5 small businesses failing in the first five years, and 82% of those failures directly attributed to cash flow problems, smart owners realize that if they can control the cash, they can control their destiny.

Read More

Now Is The Time To Start A Bookkeeping Regiment

Now Is The Time To Start A Bookkeeping Regiment

I know that the promise of the New Year is looming large for a lot of you guys, but when it comes to taxes and bookkeeping, guess what?

It’s kind of still 2016 … and will be until you get all your taxes filed and contributions put away.

On the other hand, it is 2017, too, and if there was ever a time to make and keep a resolution, that time is now.  Starting a smarter and more organized bookkeeping regimen for the new year is one surefire way to help your business out and save yourself and your accounting team time and money.

Read More