Let’s talk about the recession. Officially, it’s over, but we all know many businesses are still struggling. As a member of a local BNI Chapter, it has been shared with us that the founder, Ivan Misner, took a personal stance against the recession by declaring he was not going to participate in it. He even had buttons made that read “I refuse to participate in the recession.” Now, that may sound bold, or you may think, “He’s not living my reality right now,” but let’s really think about this.
There is opportunity everywhere. Even in times like these. Just stop for a moment and allow yourself to see it. Who is busy right now? Bankruptcy attorneys, loan modification experts, CPAs, realtors who have adapted to the new market reality, alternative energy industries…just to name a few. How can you parlay your company with these or other industries that are thriving? What can you offer that provides value and convenience to booming businesses?
Don’t let the media determine your mindset. Decide today that you want to grow your business. Decide that you aren’t going to let the economy take you down. If your company needs to “zig” when you have always “zagged,” make the change. Do what you need to do to keep your doors open, your employees employed and your company thriving. It is realistic to make this happen. Just think outside the box. Brainstorm with employees, friends or family. Hire a business coach if you can afford it. It might be that you can’t afford not to hire one because of what a good coach can do for you (personal experience talking here).
You can face the current economy, make adjustments and survive and/or thrive. Or become a statistic. It’s your decision. I vote for punching the recession right between the eyes and knocking it on its keister.
What does your CPA do for you?
As business owners, we all have a CPA. The person we give our financial statements to and cross our fingers they can do the magic. But what else could your CPA do for you? What else are they capable of doing? Here are three things that can help you:
- Review your books quarterly. Take the time to send your financial statements to your CPA on a quarterly basis. Have him/ her take a quick peek at what your business is doing. If something isn’t right, it can be caught right away rather than at the end of the year.
- Call first. When you are going to make a large purchase, maybe a new piece of equipment, call your CPA first, NOT after you’ve signed the agreement. He/she will know the benefits or drawbacks depending on the type of equipment and the amount of the purchase.
- Gray area. Yup, we said it. The gray area. It’s that area in which the question “Can I expense this?” falls. Don’t decide on your own…pleeaassee. Call your CPA first and give your bookkeeper the direction. Not the other way around. Your bookkeeper is not a CPA and doesn’t know all the tax laws like your CPA does.
The CPA’s we work with appreciate being involved in their clients’ businesses throughout the year. It makes their job easier because they are up-to-date on their clients’ issues. It also decreases the calls they have to make saying, “You owe,” when you had no idea.
Your CPA should want to do these steps for you. If not, consider getting another CPA who is interested in your business.
As business owners, we all have a CPA. The person we give our financial statements to and cross our fingers they can do the magic with our taxes. But what else could your CPA do for you besides your taxes? What else are they capable of doing? Here are three ways they can help you:
- Review your books quarterly. Take the time to send your financial statements to your CPA on a quarterly basis. Have him/ her take a quick peek at what your business is doing. If something isn’t right, it can be caught right away rather than at the end of the year.
- Call first. When you are going to make a large purchase, maybe a new piece of equipment, call your CPA first, NOT after you’ve signed the agreement. He/she will know the benefits or drawbacks depending on the type of equipment and the amount of the purchase.
- Gray area. Yup, we said it. The gray area. It’s that area in which the question “Can I expense this?” falls. Don’t decide on your own…pleeaassee. Call your CPA first and give your bookkeeper the direction. Not the other way around. Your bookkeeper is not a CPA and doesn’t know all the tax laws like your CPA does.
The CPA’s we work with appreciate being involved in their clients’ businesses throughout the year. It makes their job easier because they are up-to-date on their clients’ issues. It also decreases the calls they have to make saying, “You owe,” when you had no idea.
Your CPA should want to do these steps for you. If not, consider getting another CPA who is interested in your business.
We have begun the fourth quarter of the year, and you should sit down with your bookkeeper, go over your financial position and strategize.
Do you need to buy inventory or update office equipment to increase your expenses and offset your profits before the end of the year so you can lower your tax burden for your small business?
Or, do you need to make some adjustments to improve your cashflow or profit so you are on top of everything and in a strong position for the upcoming year?
Do you really know your businesses overall situation as it relates to expenses, profit, and taxes, or is your perception a little fuzzy?
Sit down with your bookkeeper as soon as possible so you can utilize this final quarter of 2011 with a strategy in place that will ensure you are a winner by the end of the quarter.
If you do not have a bookkeeper we would be happy to speak with you, and help you get your fourth quarter strategy in place. please call our office 702.221.2236 for an appointment.
I have met with several clients and heard the same thing. They feel that their businesses are growing and staying busy but it seems like there is never enough money to cover everything. It is a common plight for many business owners these days. What seems to be the common problem is they are making the sales but having a hard time collecting from their clients. Here are three tips to improve payment of your invoices and increase cash flow :
1) Send your invoices out in a timely manner. Make invoicing a priority as jobs or services are complete. If you don’t invoice you most likely won’t get paid. Keep in mind if you only invoice at the end of the month you are essentially giving an automatic 30-day term to the clients you serviced in the beginning of the month.
2) Confirm how your clients want to receive your invoices. What may be convenient for you may not be the best for your client. Ask them if they want to receive their invoices via mail or email. Everyone has a preference. By sending the invoice the way they want to receive it, you have increased your chances of being paid quicker.
3) Make it easy for your clients to contact you. Make sure you have all your contact information along with your mailing address on your invoice. If your client has a question and your number isn’t readily available or they don’t know where to send the payment, you are forcing them to work at getting your information. Make it as easy as possible for them to contact you so questions can be answered quickly and the invoice can be processed.
If you don’t have a process for your invoicing, take the time to put one in place. It is always exciting to get a new sale or client, but if you don’t collect for it, then you are footing the bill.
The Onslaught of Communication – Embrace It & Plan for It
Isn’t it incredible the amount of electronic communication we are all inundated with daily? Between texting, telephone calls, emails, Facebook, Twitter, Linked In…you get the idea…I could sit at my computer all day. And the distractions! I get a message from Facebook. I log on to see the message, a little irritated they didn’t just email me because now I have all these extra steps, but c’est la vie, read the message and reply. Then the distractions start. I start reading the other postings and commenting. All of a sudden 15 minutes has passed all because I went to answer one comment. Geessh! You do that 3 – 4 times a day and you’ve wasted at least an hour.
After doing this several times, yes, I’m being honest, I fell into the trap over and over all the while knowing exactly what I was doing, I asked myself, “How are you going to stop this?” Then I realized it’s not that I’m doing something wasteful. I am responding to business connections the same time I’m reaching out to personal connections. Both are important. What I didn’t do was allocate the correct amount of time to the task.
So now I schedule “Electronic” time. Anyone who corresponds with me knows it is in the early morning. It’s quiet. Phones aren’t ringing. Employees haven’t arrived yet. This has assisted me in keeping up with my emails, staying in touch via social media and getting my day set. It has been very productive and not wasteful at all (except when the email from my favorite store popped up – we all have our vices.)
This way of communication isn’t going anywhere. You might as well embrace and plan for it. If you are feeling the way I was, totally inundated, schedule time for what has become a permanent part of our lives.
Fail to Plan then Plan to Fail: The Importance of a Business Plan
Recently, I hired a business consultant to assist me in creating a business plan for a new company I am launching soon. I have been working on this endeavor for over a year and have detailed out several aspects of the company. Then I started asking myself “What am I missing?” I knew that I hadn’t thought of everything, nor do I think I will, but I wanted someone to “poke holes” at my plans. I wanted to work with someone who is objective and has the cajones to challenge my plans and point out weaknesses. I didn’t want a “yes” person.
After the initial meeting I knew I was working with the right person when my plans looked like Swiss cheese at the end. I had some serious work to do before going forward.
Ultimately, designing my business plan helped lay out the ground work and prompted me to ask important questions about my business like: Is there a need for this? Who is my target market? What is the competition charging? Now that I have a more clear picture of what I want my business to be it is easier to see what steps I need to take to get it there.
Having a business plan is not just important for starting new companies. Every company needs one in place and should revisit it every 90 days. Times to develop new business plans include new growth initiatives, expansions and new divisions. Business plans set you up for success and as the saying goes “He who fails to plan, plans to fail.”
Warm Regards,
Mary Marriott
President of Just Ask Mary
Serving Henderson & Las Vegas Nevada