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Archive for the Business Tips Category

Do members of a team want a guided approach to complete a project, or be left to their own creativity?

Do team members want a guided approach?

Be absolutely, crystal clear on the problem to be solved by the project.

Be absolutely, crystal clear on what sorts of things matter and don’t matter on the project and what is flexible/not flexible, for example:

  • timeline
  • method for solving the problem
  • technologies used
  • processes used
  • people involved
  • team-level communication channel & schedule
  • what, specifically, constitutes success

Be absolutely, crystal clear on your level of commitment and your “why.”

Then let each team member know that you are (or whoever is) available for whatever degree of support they require to get the job done and enhance their own value.

If a team member wants checklists, provide checklists.

If a team member wants to be left alone to do the work with latitude and independence, provide a deadline and a problem to solve.

If a team member wants daily meetings, provide daily meetings.

If a team member wants to you to be available via IM, be available via IM.

If a team member wants you to review completed milestones, set up a system to be notified of those milestones.

Is it worth it to track inventory quantities, not just dollars?

 

How much money do you stand ready to make & keep from this data?
Uses of quantity-specific inventory information include:
* prevention & detection of theft and loss
* guard against being overcharged by the supplier
* highest ROI on giving of samples
* shaping of messaging & promotion strategy to focus on highest-margin products, not just highest or lowest sale price
* cash flow management from clarity on reorder points so disbursements aren’t accelerated, or on the other end of the spectrum, she isn’t left without product when a customer needs it
* prevention of losses when she has too much of a non-selling or slow-moving product and has to let it go at a fire sale
* once her business is large enough such that she has to file on the accrual basis, you can help her to make sure she’s not paying too much in income taxes (or too little and then pay extra for it later with money and time)
* assist in setting sales targets & plans for achieving those targets
Track.
Profit.
Repeat.

Five Ways to Ring in 2018

Happy new year! January is the month of new beginnings and a perfect time to strategize about projects that will boost your business prosperity. Here are five ideas to get you thinking about new beginnings for your business in 2018.

1.Learn new technology.

Every year, tens of thousands of new online software applications are invented that will save us time and money. Learning at least one new app will keep us sharp and hopefully improve our business. There are many to choose from, and one way to narrow it down is to find one that will help you do your job better.

Look for an app that supports your administrative work, such as a new phone system, video conferencing, scheduling, cloud storage, shipping, document management, or data entry automation. Or you might have a need for apps in marketing and sales, such as social media, customer relationship managers, email list management, or web applications. If you’re not sure where to look, ask your friends what has saved them the most time.

2.Upgrade your accounting system.

If your accounting system is not updated to the current version, it may be time to perform the upgrade. Check with us for advice on the current version and any new features that you can benefit from.

3. Develop your 2018 prosperity plan.

The word “budget” has somewhat of a negative connotation, but a prosperity plan sounds like fun. They are the same, of course, and the idea is to determine what goals you want to reach so that you have a clear path to making your desired prosperity a reality.

4. Create a theme or mantra.

Want to stay more focused in 2018? A theme or mantra can remind you to stay on track with a particular project or goal. Brainstorm a phrase that will guide you in 2018. Here are some examples:

  • Customer service excellence
  • More me-time
  • Enthusiastic, engaged employees
  • Expanding digital presence
  • Going green
  • A prosperous new product line

5. Delegate something that isn’t getting done.

One way to feel amazingly rejuvenated and re-energized about your business is to give someone an item that’s been on your to-do list for far too long. It magically gets done right before your eyes!

We’re wishing you a most prosperous and happy new year.

Accepting a Payment Plan from a Donor or Customer

 

If you accept a payment plan in any situation for any reason, bear in mind that risk is something you can play with and not just be subject to.
A payment plan introduces risk into the equation, because it’s replacing a certainty with an uncertainty.
So if you do ever accept a payment plan, propose terms that then reduce your organization’s uncertainty and/or compensate for the additional uncertainty.
Examples:
* AutoPay only
* Weekly payments, not monthly payments
* Pull from their bank account instead of the credit card account – lower fees for your organization – and only pull from the cc account if the bank account pull bounces, and of course if so then include that fee to get reimbursed plus a surcharge to cover the cc fees (check your state’s laws on this).
* Charge a financing fee
In my experience, a lot of organizations suffer for lack of training about how to identify and counter financial risks. My life certainly suffered for it. I did what I knew…and when I knew better, I did better.

How to Write Your Mission Statement

Mission statements are not just for large corporations. As an owner of a small business, you can benefit from going through the exercise of writing your mission statement. It can not only re-connect you with your “why,” it can also communicate an important part of your business to all of your stakeholders.

What Is a Mission Statement?

A mission statement answers the question “What impact will you have on the world?” It’s your core purpose, your reason for being.

Here are a couple of mission statement examples from large companies you’ve probably heard of:

Harley-Davidson: We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.

Darden Restaurants:  To nourish and delight everyone we serve.

FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.

Ford: We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.

Levi-Strauss: People love our clothes and trust our company. We will market the most appealing and widely worn casual clothing in the world. We will clothe the world.

At Microsoft, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible.

NIKE: To bring inspiration and innovation to every athlete in the world.

The mission of The Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.

A mission statement differs from a vision statement because a vision statement communicates what the company wants to be.

Ask yourself what your business’s core purpose is.  What is the impact you want to have on the world?  Once you know, you’ll be able to write your own mission statement.

Sharing Your Mission Statement

There are many ways you can share you mission statement.

  • Make sure your employees know it.
  • Display it in the About section of your website.
  • Add it to your marketing material where appropriate.
  • Use it when recruiting for new employees.
  • If it’s short, use it on promotional items such as mugs and t-shirts.
  • Frame it and hang it in your office.
  • Mention it in speeches you give.

A mission statement is something to be proud of and something that should make people smile. Yours should motivate and energize you. Once you’ve written yours or if you already have one, be sure to share it with us.

Get Ahead on Year-End Tasks

Year-end is just around the corner, and that means a couple of administrative tasks are necessary to take care of bookkeeping and tax chores. Here are a couple of tips to make year-end go smoother.

Cleaning up

Things will go a lot smoother if you reach out to your vendors and employees and get their help to update your records.

  • Send a notice to all employees, asking them to verify their address so they will get their W-2s without delay.
  • Make sure you have the right information for vendors that you need to produce a 1099 for. Before you pay your vendors more than $600 in one year, ask them for a W-9 so that you have a current address and taxpayer ID number on file.
  • Check to make sure you have any sales tax exemption certificates from vendors that you are not charging sales tax to.

It’s also time to clean up any account balances that need to be reclassified or corrected.

  • Any clearing accounts, such as undeposited funds, should be zero.
  • Bank reconciliations should be caught up and book balances should match the bank or be explained.
  • Inventory should be adjusted to reflect accurate quantities.
  • Loan balances should be adjusted to correctly reflect interest and principal allocations.
  • Depreciation entries should be made.

Maximizing deductions

Here are a just a few ways to maximize deductions:

  • Any bad debts that aren’t expected to be collected can be written off.
  • Any inventory that is not saleable or worth less than you paid for it can be adjusted on your books.
  • For cash basis taxpayers, pay any large bills before year-end if you have excess profits.
  • Pay employee bonuses prior to year-end.

Getting organized

Create a place in your home or office or a special file on your computer to store tax-related documents, such as W-2s, brokerage statements, and tax returns. Convert them to PDF format if they are not already, and upload them to your accountant’s secure client portal as you get them.

With all this great preparation, you’ll find tax season easier than ever and a chore that you can mark off your to-do list early.

 

The Perfect Chart of Accounts for Your Business

Your “Chart of Accounts” is the list of accounts in your accounting software.  The accounts are listed in your reports, and the totals allow you to determine how much you’ve spent, made, own, or owe depending on the type of account.

It’s essential to create a list of accounts that you need in order to make better business decisions.  Your chart of accounts needs to be designed intentionally.  If it hasn’t been, it’s never too late.

Two Types of Accounts

There are two major types of accounts:

  1. Balance sheet accounts that tell what you own and owe.  These are determined by your checking accounts, inventory, and credit cards.
  2. Income statement accounts that tell you about current period operating results.  These, in turn, have two major categories, income and expenses.  For companies with inventory, expenses are further broken out into cost of goods sold and other expenses.

Three Purposes

A chart of accounts should meet three needs:

  • Make it really fast for you to do your taxes
  • Give you all sorts of “Aha’s”
  • Allow you to spend far more time on revenue analysis than expense analysis because that’s where success lies for small businesses

Taxes

Your accounts should be the same as (or be able to be grouped into) the lines on your tax return.  You can find a copy of the tax form you fill out. For example, a sole proprietor will use a Schedule C of the 1040, and a corporation will complete an 1120.

There are a few special needs, such as meals and entertainment which are only partially deductible, that you need to pay special attention to. We can help you with that.

Aha

As small business owners, we work with a gut feel, but when you see what you’ve made or spent in black and white, it takes on a whole new level of meaning.  Your income statement and other reports should do that for you.  If they don’t you may not have your accounts set up right.

Revenue

Think about how you want to see your revenue:

  • By product line
  • By major supplier
  • By category of solution to the customer
  • By customer type
  • By service type
  • By location (you can also use Class for this)
  • By job
  • By distribution method

We can help you brainstorm based on your industry and type of business.

Actionable Intelligence

If you’ve been putting all your revenue into one revenue account, it will be exciting the first time you see your new Profit and Loss statement.

If you’ve been breaking out your revenue but it hasn’t led to any actionable change in your business, then there may be a better way to break it out.

If you’re happy with the way your revenue is broken out, then think about how you can take it to the next level.

Once you see your new chart of accounts, you will likely have even more questions.  The chart of accounts can be an evolving entity, designed to serve your business needs.

How to Protect Yourself from Identity Theft

The security breach at Equifax a few months ago left many people thinking once again about identity theft. The best thing is to do everything you can to prevent it from happening to you. Here are a few tips to help you reduce your risk of being a victim of identity theft as well as how to reduce the damage from security breaches of your personal data from sources you can’t control.

Discontinue paper statements that are mailed. 

Paper bank, brokerage, and credit card statements that are mailed can be misboxed, intercepted, lost, or stolen, and the information can fall into dishonest hands. Instead, discontinue paper statements, and access them via your online account where you can review, print, or save them each month for your records.

Rent a private mail box.

If you have trouble with mail theft in your area and can’t check your mailbox as soon as the mail is delivered, consider renting a post office box or a private mail box. These are especially handy if you travel a lot or have many packages delivered and no one is home to sign for them. They cost up to $300 per year, and you can find them at places like The UPS Store, Mailboxes Etc., Postal Annex, or your local post office.

Shred your trash.

If you throw out junk mail offers for new credit cards or bank accounts, be sure to shred that paper and anything else that might contain private information.

Don’t email secure data. 

Credit card numbers, social security numbers, and passwords should not be sent via email unless the email is encrypted or secure. The odds of something happening are low, but could happen.

Use different passwords for different account groups. 

Even the most secure-minded person uses the same password for many different accounts. You can too, but be smart about it. Use a unique password for your bank that you don’t use anywhere else. You might use the same password for all of your social media accounts because it’s just easier. Or another one for all of your free accounts; just don’t use those for any banking or credit card activity. Be smart about your password use, and make your password difficult based on the level of information that is at risk.

Choose hard passwords.

It’s painful, but choosing long, hard passwords can help throw off thieves. Include at least one capital letter, one special character, and one number in your password.  Make it nice and long. And don’t use common words, your birthday, parts of your social security, or your phone number in your password.  When it’s provided, use a random password generator.  And don’t let your browser automatically save your banking passwords for you.

Close inactive accounts.

If you no longer use an account you signed up for, close it rather than let it linger. It will reduce your risk. Be mindful, though; if you close some credit card accounts, your credit score could be adversely affected even if there has been no activity for a while.

Consider freezing your credit.

If you don’t need a new credit card or loan or are not planning a large purchase soon, consider freezing your credit. When you credit is frozen or secure, no one can run checks against it. Any identity thieves would not be able to take a loan out in your name.

Avoid unsecure wifi.

Although the ambience is nice at a Starbucks, the wifi is not secure, and connecting and doing your work all day long there is a big security risk.

Monitor all account activity.

Check your bank and credit card accounts frequently, and turn on all alerts and fraud notifications. You can turn on alerts for when transactions exceed a dollar amount and when your bank balance goes below a certain amount. Getting emails or text messages on your activity can help you stay on top of things.

Consider identity theft insurance.

Identity theft insurance is now common, and you can get it and fraud protection for your business as well as for individuals. If you are a victim, it reimburses you for the cost of restoring your credit. Check with your local insurance agent for more information.

We hope it never happens to you. Try these tips to reduce your risk of identity theft.

Giving a Workshop? How to Short Yourself in One Easy Step

 

Pricing your workshop by using your materials cost as a point of comparison is an approach that is likely to leave money on the table and keep yet another entrepreneur playing small-time by default, all for lack of design.
Long ago, I made the mistake of using my costs as a determining factor for my price point. I practically gave away my product because my materials cost was tiny…but my expertise was exceptional.
Consider the following:
Charge what the market will bear.
See what other people in the area have charged for similar workshops. If it’s more than you were contemplating, yippee! Charge market rates if your audience is the same and your value proposition is the same.
Be aware of who you’re attracting to your workshop and what’s in it for them so you can decide who you want to attract and put together language accordingly.
When you attract people to your workshop who stand to make a financial gain (make or save money) by coming to your workshop, this can drive up the price.
When you attract people to your workshop who stand to save time by coming, then if the opportunity cost of their time is worth anything, this can drive up the price.
Your opportunity here is to decide who your audience is and then tailor your workshop message to help them realize the real value that’s on offer.
Take into account the relationship of risk to price.
The lower the risk for the attendee, the higher the price can be. There are many ways to lower risk, such as guarantees. If you want a list, I can start a list.
Take into account the social value of the event and the relationship to price.
Price something at $10 and you’ll attract people who are willing to pay $10. Nothing wrong with that. But you’ll have to generate a lot more volume to cover your house nut, much less create a real profit. If you’re a volume-generating machine and you want to make the results of a $10 workshop available to many people, go for it.
However, don’t believe that this is your only option.
Price the same thing at $5,000 (and have the value proposition aligned with that) and you’ll attract people who want to be in the same room as other people who can pay $5,000 for a workshop.
My point is that you can design how this goes and not assume that it has to be a certain way.

The Pointillism Maserati

 

Every action that we take either enriches us or impoverishes us.

When we have perfect clarity about which is which, we’ll have the keys to the vault.

Expenses

I was driving through downtown Naples on a beautiful October Saturday. You have probably heard – and rightly so – what a beautiful city Naples is, and certainly there is a lot of wealth here, in the city itself and on lovely Marco Island.

On U.S. 41, the main north-south road connecting the main cities in the area, there are plenty of luxury car dealerships. I don’t mean the Honda Acura. I mean Maserati, Aston Martin, Tesla.

That’s fine.

But these are, for most people, expenses. Most people will not leverage a vehicle into a (spoiler alert!) ROI.

In the heart of downtown Naples is the difference between spending 6 figures to enrich your life or spending 6 figures to impoverish it. Just where U.S. 41 turns to the southeast is a cluster of establishments that spells out that difference in 2 words:

art galleries.

Art appreciates in value. Most vehicles do not. In a given transaction, one type of disbursement is an expense whereas one is an investment.

But while the dealerships are all up and down U.S. 41, you have to go to one special place for those art galleries.

What are the questions you’re asking yourself right now?

 

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844-884-3766 | david@tieroneservices.net

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