Virginia Society of Tax & Accounting Professionals Business Content Newsletter Articles

Understanding Depreciation

Tue, 15 Aug 2023 16:00:00 GMT

Download Volume 13, Issue 4 Document Here

BizBoost News
Volume 13, Issue 4
Distribution 8/12/2023; Publication 8/15/2023

Understanding Depreciation
Depreciation can be a tricky topic to understand for small business owners. It doesn’t affect cash, but it does affect your profits. It also affects how much tax you pay. Let’s dive in with a simple explanation of depreciation for accounting purposes.

Large Purchases
When you purchase a car or piece of equipment for your business that will last for many years, it takes quite a bit of cash. The car or equipment is going to last many years and benefit your business over many years, not just the current one.

In accounting, we try to match the timing of when something is useful to when it affects your profits. This is called the matching principle. Rather than immediately expense this asset that’s going to help your business over many years, it makes sense to expense portions of it over the time you use it. Otherwise, your business would show a huge loss in one year and excessive gains in subsequent years. This is the concept behind depreciation.

Let’s say you bought a piece of equipment for $20,000 that will last five years. With depreciation, you can expense $4,000 per year for five years, spreading out the benefits of the machine against the revenues it is helping you earn.

Useful Life and Salvage Value
To standardize the way all businesses handle depreciation, each asset is assigned a useful life based on its asset class. We won’t go into these details here, but your accountant will have a table that they use to calculate the right amount of depreciation for the assets you purchase in your business.

Some assets will also have a value at the end of their life. This is called salvage value. In the above example, we assumed it was zero.

Depreciation Methods
There are many methods to come up with the amount to use for depreciation. The above example uses a method called straight line, and there is a formula attached to each method. This is the formula for calculating straight-line depreciation:

Annual Depreciation Expense = (Asset Cost – Salvage Value) / Asset’s Useful Life

Other depreciation methods that are accepted include double declining balance, units of production, and the sum of the years’ digits, plus more than half a dozen others. Each comes with its own formula.

How Cash Is Affected
While cash may be affected in the year of the asset’s purchase, depreciation is a non-cash expense. This confuses many small business owners and is one of many things that causes the amount of profit to differ from the amount of cash on hand.

Land and Other Exceptions
If your company owns land, it is recorded on your balance sheet as an asset. While it certainly benefits your business over time, it is an exception to the depreciation rule. Land is not depreciated. Any buildings on the land are depreciated. The reasoning is that land doesn’t lose its value over time and does not need to be replaced like other assets.

Only physical assets expected to benefit the company for more than a year are depreciated. Most of these fall into a category called fixed assets. To avoid costly accounting expense, these assets also must be substantial in cost (or material, as we say in accounting). A pencil might last longer than a year, but office supplies are too inexpensive to depreciate. There is a limit on the value of what is cost-effective to depreciate.

The Journal Entries
A sample simplified journal entry to record the initial purchase of an asset looks like this:

Debit Fixed Asset (either the asset is named and an account created for that asset or a separate detailed fixed assets schedule is maintained to keep the chart of accounts cleaner)

Credit Cash or Loan or both
To record depreciation in the first year, a contra-asset account is set up. A contra-asset account is an asset account with a negative, or credit, balance.

Debit Depreciation Expense
Credit Accumulated Depreciation (a contra-asset account)

The Fixed Assets portion of your balance sheet is where these accounts would go:

Asset
Accumulated Depreciation (this is the contra account)

For small businesses, depreciation can be figured once a year as an adjusting entry to save bookkeeping time throughout the year. Or it can be figured more often so there are no surprises with the amount of profit the company is making.

Taxes versus Book Depreciation
For tax purposes, depreciation is a huge topic. Many times, it’s beneficial for a company to write off depreciation faster, so fewer taxes are due. Currently, there are tables provided by the IRS as well as maximum depreciation limits. Right now, there is bonus depreciation (until the 2026 tax year) as well.

Large businesses may use one method for depreciation for their accounting records to investors, and another depreciation method for tax purposes to reduce taxes.

Depreciation is a massive topic, yet a simple concept. Your accountant can help you with the nuts and bolts of depreciation so that you have a plan that’s best for your business.

***

Tweets

Insert a link to your newsletter, website, or blog before you post these:

Our latest blog: “Understanding Depreciation” is available now! Subscribe here: [link]

Depreciation can be a tricky topic to understand for small business owners. It doesn’t affect cash, but it does affect your profits. Learn more in our latest blog article: [link]

In accounting, we try to match the timing of when something is useful to when it affects your profits. This is called the matching principle. Learn more in our latest blog article: [link]

To standardize the way all businesses handle depreciation, each asset is assigned a useful life based on its asset class. Learn more here: [link]

Some assets will have a value at the end of their life. This is called salvage value. Learn more in our latest blog article: [link]

While cash may be affected in the year of the asset’s purchase, depreciation is a non-cash expense. Learn more here: [link]

If your company owns land, it is recorded on your balance sheet as an asset. While it certainly benefits your business over time, it is an exception to the depreciation rule. Find out more in our latest blog article: [link]

For small businesses, depreciation can be figured once a year as an adjusting entry to save bookkeeping time throughout the year. Discover more in our latest blog article: [link]

Building a Resilient Supply Chain in Your Business

Tue, 01 Aug 2023 16:00:00 GMT

Download Volume 13, Issue 3 Document Here

BizBoost News
Volume 13, Issue 3
8/1/2023

Building a Resilient Supply Chain in Your Business

Supply chain breakdowns continue to stymie small businesses, causing them to lose sales and profits. Whether your business has been affected or not by supply chain delays and shortages, it’s a good idea to take steps to make your supply chain as resilient as possible.

Your supply chain starts with the acquisition of materials that go into what you sell. It includes the production of your products and services. And it doesn’t end until the customer receives the product or service you offer, as well as any help they need to consume your product.

Here is a process to help you evaluate your supply chain and improve its resilience, to avoid future bumps in the road.

Start with an Inventory of Your Suppliers
To evaluate your supply chain, a good place to start is to make a list of vendors. An easy way to get this vendor list is from your accounting system. Make lists from your list:

Primary vendors that are crucial to your business. This includes vendors from which you purchase goods for resale, and can also be vendors such as your online shopping cart because if it goes down, you lose sales. These are you, mission-critical vendors.
Secondary vendors that provide support indirectly, such as maintenance to machines you use or vendors that provide human resource benefits. Your business won’t be terribly disrupted if something happened to these vendors.

Once you’ve made your lists, let’s focus on your primary vendors first. If this list is large, you may want to further prioritize it by sorting the vendors you are most dependent on to the top of the list.

Contingency Planning
For each vendor on your primary list, do some research to find alternatives. You want to develop a deep bench of suppliers who can support your business. If one supplier has trouble meeting your orders, you will be more prepared and can consider switching. You’ll need to develop relationships with these alternate vendors, and perhaps even use them a time or two to test the relationship.

Many factors can go into selecting alternate vendors: price, quality, service, delivery time, shipping costs and methods, country of origin, location of warehouses, troubleshooting effectiveness, and much more. You know your industry best and what you need, so you can develop a table of criteria to evaluate potential new vendors. The ultimate goal is to have backup plans all along your supply chain.

Once you’ve gone through your primary list, you can start on the secondary vendors.

Purchasing Department
Large companies have entire purchasing departments to do this kind of work. If your business is small, you may be able to delegate portions of the list to trusted and well-trained employees. Know this type of work can take a long time. It will also be changing as new vendors spring up and older vendors retire or go out of business.

Internal Operations Including Selling and Distribution
Now that you’ve taken care of your suppliers, the next big step in supply chain efficiency is to standardize your operations. Take a look at your internal operational processes to ensure they are as efficient as possible. Create policies and procedures to ensure quality and customer satisfaction.

This includes reviewing the production process as well as selling and distribution, all the way to customer service. You may have covered this while you assessed your vendor list, but if not, you can do it now.

One example is how you get your product or service to your customers. Be sure there is an alternate method in case your primary distribution method breaks down.

Again, this is a marathon, not a sprint. Take your time to do this project right, and it will benefit you for years to come.

Risk versus Reward
In some cases, it may simply not be cost-effective to have a fully developed contingency solution. It may be more cost-effective to take the loss if it happens. You’ll want to evaluate the circumstances and come up with the right solution that works for your business.

Take the time you need to improve your supply chain resilience, and your business will be more valuable and more profitable for it.

***

Tweets

Insert a link to your newsletter, website, or blog before you post these:

Our latest blog: “Building a Resilient Supply Chain in Your Business” is available now! Subscribe here: [link]

To evaluate your supply chain, a good place to start is to make a list of vendors. An easy way to get this vendor list is from your accounting system. : [link]

Supply chain breakdowns continue to stymie small businesses, causing them to lose sales and profits—but there are solutions! Learn more in our latest blog article: [link]

A big step in supply chain efficiency is to standardize your operations. Take a look at your internal operational processes to ensure they are as efficient as possible. Learn more here: [link]

How do you get your product or service to your customers? Be sure there is an alternate method in case your primary distribution method breaks down. Learn more in our latest blog article: [link]

#BusinessTip Whether your business has been affected or not by supply chain delays and shortages, it’s a good idea to take steps to make your supply chain as resilient as possible. Learn more here: [link]

DID YOU KNOW… When it comes to supply chains, it’s important to develop relationships with alternate vendors, and perhaps even use them a time or two. Find out more in our latest blog article: [link]

Take the time you need to improve your supply chain resilience, and your business will be more valuable and more profitable for it. Discover more in our latest blog article: [link]

Understanding Goodwill in Accounting

Sat, 01 Jul 2023 16:00:00 GMT

Download Volume 13, Issue 1 Document Here

BizBoost News
Volume 13, Issue 1
7/1/2023

Understanding Goodwill in Accounting

You might know the word “goodwill” as the name of a local charity where you can drop off household items you no longer need. It might also be something that’s talked about at church. But in accounting circles, goodwill is something completely different.

Goodwill is an account on the balance sheet of certain businesses. It falls into the category of assets, and specifically, it’s an intangible asset. An intangible asset is something that is not physical. Examples of other intangible assets are copyrights, patents, and trademarks.

Goodwill arises when one company purchases another. When a company pays more for the company that it is acquiring, the difference is booked as goodwill. Goodwill represents the extra value that the acquisition provides for the purchasing company.

When one company buys another, the assets and liabilities of the acquired company are taken over by the purchasing company. They are recorded on the purchasing company’s books at their fair value. The balancing entry between the fair value of the assets and liabilities purchased and the purchase price is booked to the goodwill account.

What could lead a company to pay more for another company? Things that are not on the balance sheet but are valued could include a solid customer base, great employees, brand reputation, the company name and what it means, technology owned by the company, and a great reputation for customer service.

Normally, an intangible asset like goodwill would be amortized, but it is not. Amortization is when a portion of the asset is expensed each year. A patent, for example, is amortized over its useful life, not to exceed 20 years. Amortization is comparable to depreciation. Some physical assets are depreciated, while some intangible assets are amortized.

Before 2001, goodwill was amortized for up to 40 years, but the accounting rules have changed to something less arbitrary. Goodwill must be checked each year for “impairment.”

Goodwill impairment happens when the value of the acquisition declines after it has been purchased. One of the most famous impairments write-downs occurred right after this new accounting rule was implemented. In 2002, $54.2 billion in impairment costs was reported for the AOL Time Warner, Inc. merger.

More recently, in 2020, a few of the largest impairment write-downs included companies, such as Baker Hughes, Berkshire Hathaway, and ATT, due to the latter’s acquisition of DirecTV in earlier years. In 2022, impairment write-downs included Teladoc Health and Comcast. Covid-19 was in part responsible for a large number of impairment write-downs in recent years.

If impairment is required to be booked, the journal entry will look like this:

Debit Impairment Expense (increases expenses and therefore reduces profits)

Credit Goodwill (reduces the asset amount)

If your company has acquired other companies and you have a goodwill account on your balance sheet, you can work with your accountant to determine how to check for impairment and if you are required to correct your books.

***

Tweets

Insert a link to your newsletter, website, or blog before you post these:

Our latest blog: “Understanding Goodwill in Accounting” is available now! Subscribe here: [link]

In accounting circles, goodwill refers to an account on the balance sheet of certain businesses. Learn more in our latest blog article: [link]

When a company pays more for the company that it is acquiring, the difference is booked as goodwill. Learn more in our latest blog article: [link]

If your company has acquired other companies and you have a goodwill account on your balance sheet, ask your accountant how to check for impairment. Learn more here: [link]

What could lead a company to pay more for another company? To start, a solid customer base. Learn more in our latest blog article: [link]

#BusinessTip Goodwill impairment happens when the value of the acquisition declines after it has been purchased. Learn more here: [link]

DID YOU KNOW . . . One factor that could lead a company to pay more for another company is great employees. Find out more in our latest blog article: [link]

Goodwill represents the extra value that the acquisition provides for the purchasing company. Discover more in our latest blog article: [link]

Five Summertime Strategies for 2023

Thu, 15 Jun 2023 16:00:00 GMT

Download Volume 12, Issue 25 Document Here

BizBoost News
Volume 12, Issue 2
For distribution 6/12/23; publication 6/15/23

Five Summertime Strategies for 2023

We’re six days away from the first day of summer, and a few weeks away from the midpoint of the year. It’s the perfect time for taking a strategy check in your business to see how you’re doing for the first half of 2023 as well as to plan something fun and productive for summertime.

Here are five business strategies to help you regroup, reassess, and rejuvenate your business halfway through 2023.

1. Celebrate Your Accomplishments
Take time to pat yourself on the back and congratulate the people around you for the goals you’ve reached and the efforts your team has made on your behalf. You might be shocked when you think about how far you’ve come. Maybe you’ve hired another team member and your team is the largest it’s ever been; perhaps you’ve reached record revenue goals; possibly you’ve solved a complex supply chain problem.

We all could use more praise and more celebrations in our lives. Perhaps you can organize a party, or if you are not the partying type, a quiet word individually with your team can go a long way, maybe more than you know.

2. Take a Vacation
If you’re feeling quite burned out, the best thing you can do is stop and take a breather. There’s nothing better to rekindle your creative juices than to get away from the business for a while. Summertime is when most people take a vacation, so if your business is not having its busy season, this might be a good time to go away, even if for a little while.

If you’re anxious about being away from your business, you’re not alone. In your annual planning process, plan for and block out your vacation way ahead of time. Book the reservations with no refunds several months in advance so that you won’t chicken out at the last minute. There is life beyond your business, and you will be a better business owner when you take regular breaks away.

3. Schedule a Mid-Year Review
How has your business fared for the first half of 2023 compared to the goals you set at the beginning of the year? Are you on track to reach your goals? Should you design a course correction or are you on track? Maybe you’re even ahead of plan!

You can make this process as informal or formal as you want. Some businesses hold retreats; you may simply need some quiet time on a weekend when all your family is busy doing something else.

4. Be Selective About the Projects You Start
Is your plate too full? Entrepreneurs that wear many hats would probably say “yes” to that question, so the next question is do you have to do it all at once? Ask yourself what you can afford to stop doing that doesn’t make sense. Is there a project or two that can wait? If so, decide to stop stressing about not getting it done and give yourself permission to put it on the back burner for now.

5. Play Big
Maybe you’re not playing big enough. You might be busy, but are you busy with the things that will take your business to the next level? Do the thing you’re afraid to say “yes” to; the thing that you know will transform your business and get you closer to your dreams.

If you’re putting off a project that you know will pay back handsomely, then shelve everything you’re working on and start on the one that will reap the most rewards. It could be a new product or service line, a new ad campaign, a new hire, a new joint venture, new financing, or even a new partner, which is very big indeed. You likely know what it is you need to do; your gut has been telling you for a while now. Just get it started, and it will then become easier.

Summertime is a great time to regroup, re-energize, and refresh your business. Try one of these five tips to spice up your summer as well as your business success.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Five Summertime Strategies for 2023” is available now! Subscribe here: [link]

It’s the perfect time for taking a strategy check in your business to see how you’re doing for the first half of 2023 as well as to plan something fun and productive for summertime.

Learn more in our latest blog article: [link]

How has your business fared for the first half of 2023 compared to the goals you set at the beginning of the year? How can you improve? Learn more in our latest blog article: [link]

#BusinessTip: Summertime is a great time to regroup, re-energize, and refresh your business. Try one of these five tips to spice up your summer as well as your business success.

Learn more here: [link]

DID YOU KNOW…Summertime is a great time to regroup, re-energize, and refresh your business. Find more here: [link]

DID YOU KNOW…We’re six days away from the first day of summer, and a few weeks away from the midpoint of the year. It’s the perfect time for taking a strategy check in your business to see how you’re doing for the first half of 2023! Learn more here: [link]

There is life beyond your business, and you will be a better business owner when you take regular breaks away. Summertime is a great time to regroup!

Learn more in our latest blog article: [link]

You might be busy, but are you busy with the things that will take your business to the next level? Sign up for our newsletter to find out: [link]

Cool Tech Tools: ChatGPT

Thu, 01 Jun 2023 16:00:00 GMT

Download Volume 12, Issue 24 Document Here

BizBoost News
Volume 12, Issue 24
For publication 6/1/23; distribution 5/28/23

Cool Tech Tools: ChatGPT

The topic of artificial intelligence (AI) has been in the news quite a bit recently, and one of the reasons is the launch of an AI chatbot called ChatGPT. The GPT in ChatGPT stands for generative pre-trained transformer, which is a program that can realistically write like a human and interact in a conversational way. Basically, you can type in a complicated question, and ChatGPT will give you an amazingly lifelike, most-of-the-time accurate answer.

ChatGPT was launched in November 2022 and developed by OpenAI, an AI research lab tasked with developing a friendly AI. OpenAI has both a non-profit and for-profit component in its organizational structure.

As of this writing, ChatGPT is offered at no cost, but you must open an account and verify both your email address and phone number to access it. Once you do, the prompt is simple; just ask it a question. You can get access here: https://chat.openai.com/chat

Here is a sample answer to the question, “What are debits and credits?”

ChatGPT: “Debits and credits are terms used in accounting to describe the money movement into or out of an account. In accounting, every transaction involves at least two accounts, and each account is either debited or credited.”

“A debit is an entry that increases assets or expenses or decreases liabilities or equity in an account. For example, if you buy office supplies for your business, you would debit the office supplies expense account and credit the cash account.”

“A credit is an entry that increases liabilities or equity or decreases assets or expenses in an account. For example, if you sell goods on credit to a customer, you would debit the accounts receivable account and credit the sales revenue account.”

“Debits and credits are used to keep track of the financial transactions of a business or organization. They are important tools for recording and analyzing financial information, and are essential for preparing financial statements and tax returns.”

Yes, ChatGPT is a touch verbose at times.

Here is a tax example:

Question: Qualified Business Income - earnings limitations if NOT a specified service business

ChatGPT: “Under the current tax law in the United States, if you are a qualified business owner who operates a non-specified service business, you may be eligible for a tax deduction of up to 20% on your qualified business income (QBI).”

“However, there are certain limitations on the deduction, including a cap on the amount you can deduct based on your total taxable income. For the tax year 2022, the threshold for the taxable income limit is $329,800 for married filing jointly and $164,925 for other taxpayers.”

“Additionally, there may be further limitations on the deduction if your business has a significant amount of W-2 wages and/or depreciable property.”

“It's important to consult with a qualified tax professional or accountant to determine how the QBI deduction rules apply to your specific business and tax situation.”

It can also answer these questions/requests, along with literally millions of others:

The best recipe for lemon bars
Write an engagement letter for tax preparation
Comment on the elevation of the El Camino de Santiago de Compostela from Sarria to the end.
Write an ad for marketing services.

There is a disclaimer in place, as ChatGPT will occasionally generate wrong answers. It did generate a misleading answer when it was asked a very complex tax question about the Employee Retention Credit and greater than 50 percent owner wage eligibility.

How can you use ChatGPT in business? It might save you time with writing initial drafts of letters, ads, speeches, webpages, or other correspondence. It can also save time on research and data analysis, but be sure to verify its answers. It can help with coding if you’re into computer programming. You can also use it for fun or for a second opinion.

Try ChatGPT to start seeing how it can benefit you and your business.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Cool Tech Tools: ChatGPT” is available now! Subscribe here: [link]

ChatGPT was launched in November 2022 and developed by OpenAI, an AI research lab tasked with developing a friendly AI. Learn more in our latest blog article: [link]

How can you use ChatGPT in business? It might be able to save you time with writing initial drafts of letters, ads, speeches, webpages, or other correspondence. Learn more in our latest blog article: [link]

#BusinessTip:Try ChatGPT to start seeing how it can benefit you and your business. [link]

The topic of AI has been in the news quite a bit recently, and one of the reasons is the launch of an AI chatbot called ChatGPT. Find out more here: [link]

DID YOU KNOW…The GPT in ChatGPT stands for generative pre-trained transformer. Learn more here: [link]

As of this writing, ChatGPT is offered at no cost, but you must open an account and verify both your email address and phone number to access it. Learn more in our latest blog article: [link]

ChatGPT did generate a misleading answer when it was asked a very complex tax question about the Employee Retention Credit and greater than 50 percent owner wage eligibility. But how can it be useful to you or your business?

Sign up for our newsletter to learn more: [link]

5 Ways to an Accountant’s Heart

Mon, 15 May 2023 16:00:00 GMT

Download Volume 12, Issue 23 Document Here

BizBoost News
Volume 12, Issue 23
For distribution 5/12/23; publication 5/15/23

5 Ways to an Accountant’s Heart

In the last few years, the shortage of accounting professionals has grown tremendously, and many business owners are struggling to find reputable, quality accounting services. Prices for accounting services may have gone up due to this supply/demand imbalance, and they will keep going up for years to come– due to the shortage of accounting graduates and the overall pipeline. It makes sense to explore how to work better with your accountant as they become more and more scarce and in demand.

A Successful Partnership
Intuit conducted a survey in October 2022 which found tremendous benefits to the accountant-business owner relationship:

Nine out of ten small businesses with an accountant or bookkeeper say they contribute to the business’s success.
More than eight out of ten business owners say accounting professionals helped them reduce the impact of inflation on their business.
More than 80 percent of business owners say their accountant helps them make better use of technology.
More than 98 percent of business owners say they are more confident in their business because of their accountants.
Small business owners overwhelmingly say their accountants save them time and money.

There’s no doubt that the relationship between a business owner and their accountant is of utmost importance to your business. Here are five ways to work even better with your accountant so that you can both benefit from this important business relationship.

1. Reduce your accountant’s administrative time.
There is a lot of paperwork when it comes to accounting and tax work, and administrative work goes hand in hand with that paperwork. When you can reduce the administrative work, your accountant can focus more on planning and advisory work, which is more valuable to your business. Here are a couple of tips.

When sending paper information to your accountant, scan it in and convert it to PDF instead. Then upload it to your secure portal.
When sending digital information, convert images to PDF files when possible. Images can’t easily be converted to text as PDFs can.
Instead of sending multiple files, combine PDFs into one image so they are in the same document.
Use a client portal instead of email if a client portal is provided.

2. Spend time understanding your accounting and tax reports.
A little education can go a long way. Learning a bit about finances and accounting can help you become a much better business owner. Your accountant may have suggestions on the best source for this or they may have videos they have produced themselves.

3. Honesty is paramount.
It’s critical that there is trust and complete honesty on both sides of the relationship. Your accountant may have earned a CPA or Enrolled Agent or other certifications that took years to acquire. Their license is in peril if anything is not above board. You might be surprised to learn that there are potentially many penalties and jail time for the accountant as well as the client if fraud or other criminal acts are discovered.

One example of something you can do to ensure your accountant’s trust is in tax preparation: clients should complete the tax organizer in full when the tax preparer sends it, even though it is a pain to do so. If a piece of information is missing, or you decide it’s not important but the government feels it is, that omission can spell the beginning of trouble for both you and your tax preparer.

4. Be mindful in communications.
Good communication is an essential part of the accountant-client relationship. A great client will take the time to read any emails or correspondence and answer all the questions in the email (not just the first one!).

Both you and your accountant may have preferred ways of communicating, among the choices of text, voice, and email. Keep in mind your accountant has a higher duty to protect your private information. Text and unencrypted email can be problematic for them, depending on the type of information to be conveyed.

To save time and reduce interruptions, keep a notes file on your desktop, and add any non-urgent questions to your list. That way, you can cover a lot of ground when you meet periodically. It’s a better use of both of your time. Of course, if you have urgent questions, feel free to contact your accountant at any time.

5. Vet any advice you hear.
Be wary of unsolicited advice as well as tips you might see on social media. They can be uneducated and worst case, downright fraudulent. One of the biggest problems today is ERC mills: companies that have sprung up to help small businesses claim the Employee Retention Credit from 2020 and 2021. Most of these companies are not following IRS guidelines and do not have the proper credentials to evaluate the tax law properly.

Social media sources can be quite unreliable as well. TikTok has some outrageous financial claims regarding the choice of business entity, so please do not act on this advice until you speak with a qualified accounting or tax professional.

Try these tips to build better rapport with your accountant, and your business will blossom as well.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “5 Ways to an Accountant’s Heart” is available now! Subscribe here: [link]

Many business owners are struggling to find reputable, quality accounting services, but don’t despair! We’ve got tips on how to build a successful partnership with your accountant! Learn more in our latest blog article: [link]

Prices for accounting services may have gone up due to a supply/demand imbalance. Learn more in our latest blog article: [link]

#BusinessTip: The relationship between a business owner and their accountant is of utmost important to your business. [link]

More than 98 percent of business owners say they are more confident in their business because of their accountant. Find out more here: [link]

DID YOU KNOW… Nine out of ten small businesses with an accountant or bookkeeper say they contribute to the business’s success. Learn more here: [link]

Try these tips to build better rapport with your accountant, and your business will blossom as well. [link]

How can you maintain a successful partnership with your business accountant? Sign up for our newsletter to find out: [link]

Don’t Shortchange Yourself: What an Entrepreneur’s Pay Should Cover

Mon, 01 May 2023 16:00:00 GMT

Download Volume 12, Issue 22 Document Here

BizBoost News
Volume 12, Issue 22
For distribution 4/28/23; Publication 5/1/23

Don’t Shortchange Yourself: What an Entrepreneur’s Pay Should Cover
Being in business means taking a lot of risks, especially financially, and as an entrepreneur, you deserve to be rewarded for those risks. Your pay is just one of the many benefits of your self-employment. But it’s not like the pay you get as an employee; it needs to be more comprehensive than that.

Getting Paid
The two major ways entrepreneurs can take money from their businesses are through draws or by receiving a paycheck. If your business is incorporated, you’ll take a paycheck; if your business is a sole proprietorship or a partnership, you’ll take a draw.

Here’s a list of five items to make sure you have covered in your pay:

1. Reasonable Compensation
If you were doing the same work for a company that hired you, what would your pay be? Are you making at least market equivalent or better? A lot of times, as entrepreneurs, we tend to focus only on this piece of our compensation when we set our pricing, and that’s a big mistake.

There are also tax implications of paying yourself too little (to avoid payroll taxes if you take a paycheck) or too much.

2. Retirement plan
When you work for yourself, no one is going to fund your retirement for you. Although the Social Security program helps, it’s up to you to set additional money aside for a comfortable future when you can’t or don’t want to work anymore.

3. Benefits
Employees get vacations, health insurance, and bonuses; and you should too. This should be part of your compensation package as an entrepreneur, and there are many tax advantages as well.

4. Taxes
You need to cover taxes that will be incurred on your pay as well as your business profits. This includes:

Normal withholding for federal income taxes, state and local income taxes, Medicare, and social security. If you receive a paycheck, these will be taken out of your paycheck, but they may not be enough because they don’t consider taxes on your profits. If you take a draw, you may not have withholding, but you will need to factor in self-employment taxes.
Taxes on your profits. For sole proprietors, partnerships, LLCs, and S Corps, your taxes will be figured on the profits of your business when you complete your federal income taxes. They will “pass-through” from your business to your personal return. Don’t let this part surprise you!
State business taxes. If your business does business in multiple states, you must file a tax return for each state. Many of them collect taxes based on flat corporate fees, the revenue you earned in that state, state payrolls, and/or the value of property owned in that state.

Check with your tax advisor so that there are no surprises in your tax bill for your business or your personal returns.

5. Profit
As an entrepreneur, you take extra risks when you own your own company, and you should be compensated accordingly. Your capital is tied up in your business and should be earning a good return in addition to your regular salary or draw.

Complete Compensation
Your compensation should include all of the above components. If it doesn’t and you feel like you can’t afford to pay yourself that much, then your pricing might not be reflecting all of these items correctly, you might have a volume problem, or your business model may need some adjusting.

It’s normal to take a smaller paycheck the first few years as the business is growing, but if you’re still doing it after several years or constantly have cash flow issues, then something may be wrong.

If you’d like our help in this area of your business, please reach out and let us know.

Make sure your future is bright and financially secure by considering all five items in your entrepreneur compensation.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Don’t Shortchange Yourself: What an Entrepreneur’s Pay Should Cover” is available now! Subscribe here: [link]

Your pay is just one of the many benefits of your self-employment. Learn more in our latest blog article: [link]

Being in business means taking a lot of risks, especially financially, and as an entrepreneur, you deserve to be rewarded for those risks. Learn more in our latest blog article: [link]

#BusinessTip: Make sure your future is bright and financially secure by considering all five items in your entrepreneur compensation. [link]

The two major ways entrepreneurs can take money from their business is through draws or by receiving a paycheck. Find out more here: [link]

DID YOU KNOW… Your pay is just one of the many benefits of your self-employment. But it’s not like the pay you get as an employee; it needs to be more comprehensive than that.

[link]

When you work for yourself, no one is going to fund your retirement for you. Learn more in our latest blog article: [link]

As an entrepreneur, you take extra risk when you own your own company, and you should be compensated accordingly. Sign up for our newsletter to learn more: [link]

Don’t Shortchange Yourself: What an Entrepreneur’s Pay Should Cover

Mon, 01 May 2023 16:00:00 GMT

Download Volume 12, Issue 22 Document Here

BizBoost News
Volume 12, Issue 22
For distribution 4/28/23; Publication 5/1/23

Don’t Shortchange Yourself: What an Entrepreneur’s Pay Should Cover

Being in business means taking a lot of risks, especially financially, and as an entrepreneur, you deserve to be rewarded for those risks. Your pay is just one of the many benefits of your self-employment. But it’s not like the pay you get as an employee; it needs to be more comprehensive than that.

Here’s a list of five items to make sure you have covered in your pay:

1. Reasonable Compensation.
If you were doing the same work for a company that hired you, what would your pay be? Are you making at least market equivalent or better? A lot of times, as entrepreneurs, we tend to focus only on this piece of our compensation when we set our pricing, and that’s a big mistake.

There are also tax implications of paying yourself too little (to avoid payroll taxes if you take a paycheck) or too much.

3. Benefits

Employees get vacations, health insurance, and bonuses; and you should too. This should be part of your compensation package as an entrepreneur, and there are many tax advantages as well.

4. Taxes.
You need to cover taxes that will be incurred on your pay as well as your business profits. This includes:

Normal withholding for federal income taxes, state and local income taxes, Medicare, and social security. If you receive a paycheck, these will be taken out of your paycheck, but they may not be enough because they don’t consider taxes on your profits. If you take a draw, you may not have withholding, but you will need to factor in self-employment taxes.
Taxes on your profits. For sole proprietors, partnerships, LLCs, and S Corps, your taxes will be figured on the profits of your business when you complete your federal income taxes. They will “pass-through” from your business to your personal return. Don’t let this part surprise you!
State business taxes. If your business does business in multiple states, you must file a tax return for each state. Many of them collect taxes based on flat corporate fees, the revenue you earned in that state, state payrolls, and/or the value of property owned in that state.

Check with your tax advisor so that there are no surprises in your tax bill for your business or your personal returns.

5. Profit.
As an entrepreneur, you take extra risks when you own your own company, and you should be compensated accordingly. Your capital is tied up in your business and should be earning a good return in addition to your regular salary or draw.

If you’d like our help in this area of your business, please reach out and let us know.

Make sure your future is bright and financially secure by considering all five items in your entrepreneur compensation.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Don’t Shortchange Yourself: What an Entrepreneur’s Pay Should Cover” is available now! Subscribe here: [link]

Your pay is just one of the many benefits of your self-employment. Learn more in our latest blog article: [link]

Being in business means taking a lot of risks, especially financially, and as an entrepreneur, you deserve to be rewarded for those risks. Learn more in our latest blog article: [link]

#BusinessTip: Make sure your future is bright and financially secure by considering all five items in your entrepreneur compensation. [link]

The two major ways entrepreneurs can take money from their business is through draws or by receiving a paycheck. Find out more here: [link]

DID YOU KNOW… Your pay is just one of the many benefits of your self-employment. But it’s not like the pay you get as an employee; it needs to be more comprehensive than that.

[link]

When you work for yourself, no one is going to fund your retirement for you. Learn more in our latest blog article: [link]

As an entrepreneur, you take extra risk when you own your own company, and you should be compensated accordingly. Sign up for our newsletter to learn more: [link]

Cool Tech Tools: Drones

Thu, 20 Apr 2023 16:00:00 GMT

Download Volume 12, Issue 21 Document Here

BizBoost News
Volume 12, Issue 21
For distribution 4/17/23; publication 4/20/23

Cool Tech Tools: Drones

Drones were considered fun when they first came out, but they are far from toys. Drones have surprising benefits with extremely high return on investment to certain business owners.

A drone is a robot that can fly and that is controlled by a remote device. The technology includes GPS (global positioning system) and built-in sensors. There are many benefits to using drones:

They can go places where it might be dangerous for employees to access, improving employee safety.
They increase efficiency and productivity while decreasing workload and costs.
They can improve accuracy.

A drone can be used in the following ways:

To gather information for pricing estimates, such as roof repair
To inspect items, such as a tree’s disease progression
To monitor systems or the status of certain items, such as landfill fire risks
To photograph items from an aerial view

There are many industries that have begun to routinely use drones, such as:

Forestry
Agriculture
Construction
Waste Management
Environmental
Disaster Relief Services
Photographers
Real Estate
Advertising
Event Planning
Highways, Traffic, and Road Safety

Rules for Drones
Before you fly your new drone, there are rules you’ll need to follow. The FAA (Federal Aviation Administration) has put into place the rules for flying drones safely. There may also be rules passed at the state and local levels that you’ll need to check on.

When using drones for commercial purposes, you’ll need to register your drone, familiarize yourself with the operating rules for your type of drone, and pass a pilot’s test. Find out more here: https://www.faa.gov/uas

Cost of Drones
Drones can cost anywhere from $50 to $25,000 and more. A beginner recreational drone can cost under $100, while a beginner commercial drone can range from $300 to $500. A commercial drone typical starts at a $1,000 price tag. Drone prices will vary depending on their size, features, and intended usage.

If your industry is one that is adopting drones, it might be a good time to start researching them for your business.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Cool Tech Tools: Drones” is available now! Subscribe here: [link]

Drones have surprising benefits with extremely high return on investment to certain business owners. Learn more in our latest blog article: [link]

Drone prices will vary depending on their size, features, and intended usage. Learn more in our latest blog article: [link]

#BusinessTip: When using drones for commercial purposes, you’ll need to register your drone, familiarize yourself with the operating rules for your type of drone, and pass a pilot’s test. [link]

If your industry is one that is adopting drones, it might be a good time to start researching them for your business. Find out more here: [link]

DID YOU KNOW… Many industries that have begun to routinely use drones. Learn more here: [link]

Drones can improve employee safety by accessing dangerous areas. They can also improve efficiency, productivity, and accuracy. Learn more in our latest blog article: [link]

Thinking about flying a drone for your business? Make sure you check the FAA’s rules and laws for flying drones safely. Sign up for our newsletter to learn more: [link]

6 Ideas to Put the Spring into Your Spring Revenue

Thu, 06 Apr 2023 16:00:00 GMT

Download Volume 12, Issue 20 Document Here

BizBoost News
Volume 12, Issue 20
For distribution 4/3/23; publication 4/6/23

6 Ideas to Put the Spring into Your Spring Revenue

While spring brings a change in the weather for most locations, it also brings a number of opportunities to refresh your products and services. Spring is a great time to boost your marketing campaigns so that you can boost your business revenues.

Adding the theme of spring to your marketing campaigns allows customers to see your products and services in a different light. Here are six ways to add a spring theme to your products and services.

1. Add a holiday twist.
With a plethora of spring holidays to choose from, you can build a sale around any of these.

Easter
May Day
Mother’s Day
Memorial Day
Flag Day
Father’s Day

Memorial Day is the big one; it ushers in warmer weather and signals the end of school for kids and teachers. Plus, customers are used to seeing sales during this long weekend. Mother’s Day can be a revenue booster for many businesses as well.

Which one of these holidays can you best connect your products and services? That’s your answer for an effective spring sale. If you are an egg farmer, the answer is obviously Easter. If you offer women’s products, Mother’s Day is a sure bet. The same goes for men’s items and Father’s Day. If your product is patriotic, Flag Day or Memorial Day should be your choice.

2.      Temporarily switch to spring packaging.
If you sell products with packaging, put some color into your offerings to make them stand out. Common spring colors include green, yellow, pink, orange, baby blue, and pastels. Consider adding flowers to your artwork or to your actual offering. 3.      Hold an open house.
If you offer services and no products, an open house works especially well. Invite your prospect list and current clients – ask them to bring a friend – and offer refreshments with a spring theme. Plan an agenda with a speaker on a topic adjacent to your offerings and allow time for guests to mingle and network. 4.      Free spring gift with purchase.
Providing a free gift is common in the cosmetics industry, but you may be able to apply the idea to your products and services. Make it spring-focused if possible.

An easy idea that works in any industry is a spring basket of goodies, which can be food, personal items, or just about anything that will fit in a basket. A spring basket in conjunction with any of the above holidays works great. For example, a basket with items women would love would work for Mother’s Day. With Memorial Day, you could create a picnic theme and add tiny flags to further tie it to the holiday. These baskets could be sold separately or included for free with a large purchase.

5. Spring cleaning.
Spring cleaning is a common theme you may be able to use in your offerings. Whether it’s actually cleaning, removing clutter, becoming more organized, or even crossing an item off the to-do list, this theme will help to connect the feeling of accomplishment to your products and services.

If you offer any kind of organizational services and products, such as closet design, junk removal, or house cleaning, this is a perfect theme. It also works with companies in the business of beautifying your home or office space, such as wardrobe designers, interior decorators, home furnishings businesses, florists, art galleries, landscape businesses, and plant nurseries.

6. Graduation.
Spring is a time for graduation ceremonies. Tie your products and services to graduation, starting a new life, or progressing your career.

Mix and match these six ideas to produce an even more powerful spring theme in your business.

Whether you go with a small change like adding a flower to your offerings or a big change like an entirely new marketing campaign with a bonus gift, adding a spring theme to your products and services will be like a breath of fresh air to your sales.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “6 Ideas to Put the Spring into Your Spring Revenue” is available now! Subscribe here: [link]

Spring is a great time to boost your marketing campaigns so that you can boost your business revenues. Learn more in our latest blog article: [link]

Check out six different ways to add a spring theme to your products and services and refresh the way your customers see your products and services: [link]

#BusinessTip: Refresh your products and services with themes that matches the season. [link]

Want to refresh your marketing campaigns? Build a sale around any of the upcoming holidays this spring! Find out more here: [link]

DID YOU KNOW… Adding a theme to your marketing campaigns allows customers to see your products and services in a different light. Learn more here: [link]

Add a breath of fresh air to your sales by adding spring themes to your marketing this season. Learn more in our latest blog article: [link]

Providing a free gift is common in the cosmetics industry, but you may be able to apply the idea to your products and services. Sign up for our newsletter to learn more: [link]

Do You Need a Business Savings Account?

Thu, 23 Mar 2023 20:42:53 GMT

Download Volume 12, Issue 19 Document Here

BizBoost News
Volume 12, Issue 19
For distribution 3/20/23; publication 3/23/23

Do You Need a Business Savings Account?

If you have accumulated more money in your business checking account than you really need for daily operating expenses, that is a nice problem to have! It’s time to consider putting that money to work. A business savings account might be your answer.

Every bank is different when it comes to the features and benefits of their business offerings. Here is a list of some of the items to consider asking your banker.

Is your checking account interest-bearing, and if so, how does the interest rate compare to a business savings account interest rate?
Is there an initial minimum deposit to open the savings account?
What are the monthly fees for each type of account?
What minimum balances are required in both checking and savings accounts so that fees are waived? And, is it worth it to keep minimum balances?
Are there withdrawal limits?
What are the other benefits of having a business savings account?
Is my money FDIC-insured, and if so, what is the cap?

Often, a bank will tie the checking and savings accounts together, and there will be a combined minimum balance that is lower than if either account was separate. For that reason, having your checking and savings accounts in the same bank might be more effective. Other common benefits include waiving overdraft fees, wire transfer fees, and NSF charges.

There are other types of interest-bearing accounts besides savings accounts, including money market accounts and certificates of deposits (CDs). Money market accounts may have check-writing privileges, but the withdrawals may be limited. While CDs typically pay a higher interest rate than a savings account, they tie up your money for a specified period of time, and there are steep early-withdrawal penalties.

There are many institutions besides your main bank that are focused on savings accounts and will pay much higher interest rates. Typically, online banks and credit unions will pay a higher interest rate than a bank, but the money may not be FDIC-insured, so be sure to read the fine print.

An additional benefit of keeping money in a separate savings account is that you can save for many things:

A cushion for emergencies.
Lump sum tax payments.
Future capital expenditures.

Once you’ve set up your new savings account, consider setting up monthly automatic transfers from your checking account to your savings account so that you build up your savings balance.

Make sure your business cash works as hard as you do in your new savings account.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Do You Need a Business Savings Account?” is available now! Subscribe here: [link]

Make sure your business cash works as hard as you do in your new savings account. Learn more in our latest blog article: [link]

Drone prices will vary depending on their size, features, and intended usage. Learn more in our latest blog article: [link]

#BusinessTip: There are many institutions besides your main bank that are focused on savings accounts and will pay much higher interest rates. [link]

A business savings account can help you save for an emergency “cushion,” lump sum tax payments, and future capital expenditures. Find out more here: [link]

DID YOU KNOW… Having your checking and savings accounts in the same bank might be more effective. Learn more here: [link]

While certificates of deposits typically pay a higher interest rate than a savings account, they tie up your money for a specified period of time, and there are steep early-withdrawal penalties: [link]

What are some questions to ask your banker when you open a new business savings account? Sign up for our newsletter to find out: [link]

Is Sunk Cost Bias Affecting Your Spending Decisions?

Thu, 09 Mar 2023 21:37:39 GMT

Download Volume 12, Issue 18 Document Here

BizBoost News
Volume 12, Issue 18
For distribution 3/6/23; publication 3/9/23

Is Sunk Cost Bias Affecting Your Spending Decisions?

As business owners, we’d like to think that we make rational, logical decisions when it comes to our business finances. However, scientists have discovered that we have built-in biases in our brains and our thinking processes, and one of these biases is the sunk cost bias.

A sunk cost is simply money, time, or resources that you have already spent and can’t get back. Another word for them is retrospective costs. The bias comes into the picture when we consider those costs in future decisions.

One example is when you have already invested a lot of time and money in a losing project. You continue to do so even if the benefits are not worth it. Let’s say you have spent a lot on car repairs. You continue to repair the car, digging a deeper and deeper hole. Buying a new car would be the better decision because the benefits would outweigh the costs, but you are still emotionally (and irrationally) attached to all the money you spent on the clunker.

You can also fall into the sunk cost trap with relationships. Let’s say you have an employee that is a borderline performer. You keep investing in them, thinking you can “fix” them, and they don’t improve. You should have fired them a long time ago!

Scientists Daniel Kahneman and Amos Tversky studied cognitive bias, including the sunk cost bias, in case you want to read more about the topic. Kahneman won the Nobel prize for his work.

How can you avoid falling into the sunk cost bias trap? Here are some ideas:

1.      Be aware that it exists and it affects more of our daily activities than we realize.
2.      Track key performance indicators regularly so that you can see whether you’re on or off track.
3.      Detach emotionally, if possible, from your business project.
4.      Set goals and milestones on your projects and have a “walk away” plan if things spiral out of control.
5.      Stay future-focused.

Now that you’re aware of sunk cost bias, you can be more mindful when making financial decisions.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Is Sunk Cost Bias Affecting Your Spending Decisions?” is available now! Subscribe here: [link]

#BusinessTip: To avoid falling into the sunk cost bias trap, be aware that it exists and it affects more of our daily activities than we realize. Learn more here: [link]

Want to avoid falling into the sunk cost bias trap in your business? Try tracking key performance indicators regularly so that you can see whether you’re on or off track. Find more here: [link]

DID YOU KNOW… To avoid falling into the sunk cost bias trap, you can set goals and milestones on your projects and have a “walk away” plan if things spiral out of control. Learn more here: [link]

#BusinessTip: To avoid falling into the sunk cost bias trap, detach emotionally, if possible, from your business projects. Learn more in our latest blog article: [link]

Are you aware of sunk cost bias and how it plays out in your business? In our latest blog article, we explain what the sunk cost bias is and how you can be more mindful when making financial decisions. Sign up for our newsletter to learn more: [link]

Knowledge Panels

Thu, 23 Feb 2023 17:00:00 GMT

Download Volume 12, Issue 17 Document Here

BizBoost News
Volume 12, Issue 17
For distribution 2/20/23; publication 2/23/23

Knowledge Panels

Are you looking for new ideas to market your business? If so, knowledge panels might be something to consider. Most people haven’t heard of them, but they are widely used in search results every day.

Knowledge panels are an invention from Google. They are the information panels that appear on the bottom right corner of your search results when you search for certain people or brands. They are different from the business profiles provided by Google Business Profile.

Knowledge panels display information that Google has collected in its Knowledge Graph, which is one of Google’s information databases. Search for your favorite author or your Congressperson, and you will be able to see an example of a knowledge panel. Famous historical figures and extremely popular entertainers may have more of an entire page displaying all of the information about them, but there will typically also be a right column of text (you may have to scroll a bit to see it), which is the knowledge panel.

How can you use knowledge panels in your business? When your leadership or brand is represented by a knowledge panel, it brings instant credibility to your organization. It boosts reputation and helps to build trust with all stakeholders. It increases your firm’s visibility.

Who typically has a knowledge panel? If you are an author of a book that has a formal ISBN (International Standard Book Number), you will automatically get one. If you are a leader of certain organizations, you will also get one. If your brand is well-known, it will have a knowledge panel.

You can’t create a knowledge panel, but you can claim it once it appears. Google determines who receives a knowledge panel. But you can “lobby” for one, and there are marketers you can hire to help you execute the steps it takes to get one. The main thing is to be active and visible online.

If you already have a knowledge panel, there are procedures documented on Google Help that you can follow to claim it. You can also make edit suggestions and submit them to Google. You can’t directly edit your knowledge panel; Google has final control over what is displayed.

Hopefully, you are now more aware of knowledge panels and how they can help your business become more visible.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Knowledge Panels” is available now! Subscribe here: [link]

#BusinessTip: How can you use knowledge panels in your business? When your leadership or brand is represented by a knowledge panel, it brings instant credibility to your organization. It boosts reputation and helps to build trust with all stakeholders. Learn more here: [link]

DID YOU KNOW…You can’t create a knowledge panel on Google, but you can claim it once it appears. Google determines who receives a knowledge panel. But you can “lobby” for one, and there are marketers you can hire to help you execute the steps it takes to get one. Find more here: [link]

DID YOU KNOW… Knowledge panels display information that Google has collected in its Knowledge Graph, which is one of Google’s information databases. Learn more here: [link]

Already have a knowledge panel on Google? There are procedures documented on Google Help that you can follow to claim it. You can also make edit suggestions and submit them to Google. You can’t directly edit your knowledge panel; Google has final control over what is displayed. Learn more in our latest blog article: [link]

Do you know what knowledge panels are and how they can help your business become more visible? Sign up for our newsletter to learn more: [link]

Understanding Equity on the Balance Sheet for a Sole Proprietor

Thu, 09 Feb 2023 17:00:00 GMT

Download Volume 12, Issue 16 Document Here

BizBoost News
Volume 12, Issue 16
For distribution 2/6/23; publication 2/9/23

Understanding Equity on the Balance Sheet for a Sole Proprietor

The equity section of the balance sheet looks different depending on the legal structure of your business. The most common entity types are corporations, partnerships, and sole proprietors. In this article, we’ll take a look at what the equity section of the balance sheet looks like for sole proprietors.

The Equity Section

As a reminder, the balance sheet has three major sections: assets, liabilities, and equity. The equation Assets = Liabilities + Equity is true for all entities. For a sole proprietor, equity is called Owner’s Equity. There are typically two accounts listed: the Owner’s Capital Account and Owner’s Draw Account.

Owner’s Capital Account. This balance represents how much money the owner has put into the business. Also included are cumulative business income or loss amounts from prior years.

Owner’s Draw Account. This balance represents how much money the owner has taken out of the business. Since a sole proprietor does not get a paycheck, taking money out of the business via a draw is how they get their money.

A third account will show up if you run a balance sheet report in your accounting system on any date during the year: Current Year Earnings.

Current Year Earnings. This balance is the same as the net income on the year-to-date income statement. It represents the profit in the business.

On a formal balance sheet for external purposes, only one account will show and that’s the Owner’s Capital Account. The draw and the current year earnings will roll into that account.

Salary vs. Draw

It’s important to distinguish between the idea of a salary and a draw. In corporations, owners receive salaries in the form of paychecks, where payroll taxes are taken out and W-2s are issued at year-end. The salary and taxes are deducted as expenses in the corporation’s income statement. For a sole proprietor, this is not at all how it works.

A sole proprietor has no salary. There is no payroll expense or payroll taxes on the income statement for the owner. The owner could have employees, and those payroll expenses would be shown on the income statement, but there is nothing for the owner.

The owner takes draws, which is not an expense. Draws are a reduction in equity. They do not affect profits. They do not change taxes owed. An owner can take a lot of money out of the business, and there is no impact on profits. There is definitely an impact on cash flow though!

A sole proprietor does pay payroll taxes in the form of self-employment taxes. They simply do it on their IRS Form 1040 as opposed to payroll tax forms that a corporation would use.

The equity section can be the most difficult section to understand on the balance sheet. Hopefully, the explanation above will provide a bit more clarity so you can better understand how to read your business’s financial statements.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Understanding Equity on the Balance Sheet for a Sole Proprietor” is available now! Subscribe here: [link]

The equation Assets = Liabilities + Equity is true for all entities. For a sole proprietor, equity is called Owner’s Equity. There are typically two accounts listed: the Owner’s Capital Account and Owner’s Draw Account. Learn more in our latest blog article: [link]

The Owner’s Capital Account balance represents how much money the owner has put into the business. Also included are cumulative business income or loss amounts from prior years. Learn more in our latest blog article: [link]

#BusinessTip: The equity section of the balance sheet looks different depending on the legal structure of your business. The most common entity types are corporations, partnerships, and sole proprietors. In this article, we take a look at what the equity section of the balance sheet looks like for sole proprietors: [link]

DID YOU KNOW…The Owner’s Draw Account balance represents how much money the owner has taken out of the business. Since a sole proprietor does not get a paycheck, taking money out of the business via a draw is how they get their money. Learn more here: [link]

A sole proprietor takes draws, which is not an expense. Draws are a reduction in equity. They do not affect profits. They do not change taxes owed. An owner can take a lot of money out of the business, and there is no impact on profits. Learn more in our latest blog article: [link]

The equity section can be the most difficult section to understand on the balance sheet. In our latest blog article, we provide a bit more clarity so you can better understand how to read your business’s financial statements. Sign up for our newsletter to learn more: [link]

10 Ways to Slow Down in Business (and Why You’d Want to)

Thu, 26 Jan 2023 17:00:00 GMT

Download Volume 12, Issue 15 Document Here

BizBoost News
Volume 12, Issue 15
For distribution 1/23/23; publication 1/26/23

10 Ways to Slow Down in Business (and Why You’d Want to)

Sometimes we just need to slow down. It could be our body telling us it needs a break. It could be our mind experiencing the first signs of burnout. Even if you own your own business, you are subject to burnout, especially if you are a people pleaser or say “yes” to everyone!

But how do we do that? It might have been so long since we’ve changed our pace, we don’t know where to begin. Here are some tips on the best ways to slow down in business.

1. Eliminate wasted time.

Take a deep look at your to-do list. Identify one task that you’ve always done that adds nothing to your business. Does it really need to be done? Try to find tasks that don’t make any sense to do any more that you’re still doing just because you’ve always done it.

You should be able to free up a lot of time! For now, use it to slow down. Take a nap, call a friend, visit your employees with no agenda and really listen, take a walk and smell the roses, or simply hug your child.

2. Get off electronics.

A friend recently suffered from a concussion and her doctor told her to stay off electronics to help her brain heal faster. She limited herself to one hour a day for two months. What would you do if you had to stay off electronics? My friend read all the paperbacks she had that she hadn’t gotten to (for 15 years), cooked more, went shopping for things she had wanted for years, took walks, and learned a new language.

If you spend any time on social media, eliminating it even partially can be a huge pickup in time. Getting off electronics and using that time to get back into nature is healing for everyone.

3. Get enough sleep.

If you are sleep-deprived, everything takes longer. Slowing down and getting enough sleep each night can make you more productive, reducing your work hours. Plus, you just feel more refreshed.

4. Gain a new perspective.

Slowing down your normal routine can help you gain perspective. You might have been fighting fires in the trenches for so long, you’ve forgotten why you’re in business to begin with. Take time to re-connect with your mission, vision, and purpose. Make sure your employees understand their grander goals as well.

5. Avoid multi-tasking.

Almost everyone thinks they are good at multi-tasking, but it turns out science says only a minority percentage of people can really multi-task effectively. Become self-aware of your own habits related to multi-tasking. Do things take longer when you multi-task? Do you make mistakes you have to go back and correct when you multi-task? If so, you may be in the majority of people who simply shouldn’t do it.

6. Stop worrying about billable hours (for service businesses) – at least for a while.

If you are really fixated on billable hours, you may need to just let them go for a while until you can get your perspective back. There is more to life and business than billable hours.

7. Re-connect with your business community.

If there has been no time to connect with your co-owners, customers, and employees, slowing down can provide that time. The most important thing is to simply show up and listen. You will learn a lot!

8. Make time for strategy.

If your business is headed in the wrong direction, that is the ultimate time-waster! Slowing down allows you to re-visit your strategy, making sure you are working on the right projects, that you have the right company culture, and that your business goals are in alignment with your big-picture purpose.

9. Do nothing.

It’s really okay to do nothing when you’re the business owner. You need time to come up with ideas, think about the hard issues, and even daydream. You have to stop working in the business so you can work on the business.

10. Get better at managing distractions.

If you get interrupted every five minutes, you will be drained of energy at the end of your work day. Get smart about managing interruptions so you can be more productive. This will free up more time for you to take breaks and slow your pace during your workday.

Try at least a few of these ideas to slow down before your mind or your body insist on it.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “10 Ways to Slow Down in Business (and Why You’d Want to)” is available now! Subscribe here: [link]

How do we slow down when our body or mind is telling us we need to? You can find a list of tips on the best ways to slow down in business in our latest blog article: [link]

#BusinessTip: It’s really okay to do nothing, even when you’re the business owner. You need time to come up with ideas, think about the hard issues, and even daydream. You have to stop working in the business so you can work on the business. Learn more about the benefits of slowing down here: [link]

Looking for a way to slow down in your life? Try taking a break from electronics. Getting off electronics and using that time to get back into nature is healing for everyone. Find more here: [link]

DID YOU KNOW…Almost everyone thinks they are good at multi-tasking, but it turns out science says only a minority percentage of people can really multi-task effectively. Become self-aware of your own habits related to multi-tasking. Learn more here: [link]

Are you looking for ways to slow down in your business? You can find a list of 10 ways to help you slow things down in our latest blog article. Sign up for our newsletter to learn more: [link]

Prioritizing Capital Expenditures

Thu, 12 Jan 2023 17:00:00 GMT

Download Volume 12, Issue 14 Document Here

BizBoost News
Volume 12, Issue 14
For distribution 1/9/23; publication 1/12/23

Prioritizing Capital Expenditures

Most small businesses own fixed assets, which include items like land, buildings, equipment, and automobiles. The investments of adding, replacing, or improving upon fixed assets is called capital expenditures (capex).

It seems like there is never enough money for all the capital expenditures that need to be done in a business. To make the best spending decisions, the business owner needs to put processes in place for capex activities.

The first step is to make a list of all the capital projects you want to do. Here are some examples:

Buy an additional truck for deliveries.
Expand the warehouse space.
Purchase a piece of equipment for the manufacturing line.
Redo the dock area to improve loading efficiency.

Once you’ve made your list, you can begin to formalize your capital expenditure process. Each project should be detailed and estimated, with bids from vendors so that you have a very good idea of the cost.

The next step is the most important. What are the estimated savings for each project? In other words, what will your return on investment be? In capital expenditure spending, this answer is crucial. For each project, estimate the expected savings in time, money, and intangible benefits, and what the breakeven time will be.

This step can be extremely difficult because the savings might not be concrete. It could be that the benefit is improved customer service, which should result in future sales. In this case, you still need to estimate future sales. In most cases, it can take years for a capital expenditure to start paying off from a cash flow standpoint.

Now, make a summary table of your results.

Project

Cost

Anticipated Savings

Benefit

Notes

Truck

$40,000

Increases sales by $1,000 per week.

Marketing spending (non-capex) increases by $3,000/year.

Assume cash sale – if loan, figure interest expense.

First year: $9,000 savings.

Second year savings: $49,000. Breakeven comes in second year.

Increases sales capacity and reduces delivery times.

Redo the dock area

$20,000

Time saved – payroll costs decrease by 1/2 headcount. Savings of $27,000. If attrition used, defer savings.

First year savings: -$7,000. Second year savings: $27,000. Breakeven comes at end of second year.

Employee happiness, reduced turnover are intangibles.

When deciding which project to do, return on investment is only one factor to consider. You must also consider employee satisfaction and turnover issues, customer service, capacity management, tax breaks, breakeven time, cash flow, lending limits and financial ratios, and other factors that might be specific to your industry.

The key is to have a process. If you don’t, you might off the top of your head say “let’s do the cheapest project first.” But it might not be the one with the highest return, which can cause cash flow and profitability issues down the road.

Taxes need to be considered, which have been left off of the above example. Especially if it’s just before year-end and you have high profits, December could be the best timing for a higher return on investment.

Another consideration is if you will need a loan to make these improvements. Interest rates have been rising, and these costs, plus your cash flow impact, need to be evaluated. As your debt increases, your financial ratios also need to be evaluated. You have to be careful not to go into too much debt overall.

Once you have documented all of these considerations, you can make a much better-informed decision on your capex spending and which project to do first. You might consider creating a capex committee to help you make a decision. Be sure to include your accounting advisor on the committee!

Three Processes for Capital Expenditures

You need three processes to properly evaluate capital projects:

Initiation, estimating, and evaluating return on investment for each capex project.
Prioritization – what gets done first?
Managing and monitoring the projects once they have started.

We’ve talked about the first two; let’s talk about managing the project. You’ll want to appoint a project manager that can oversee the project’s progress and make any course corrections needed. Once the project is complete, set milestones so that you can see how accurate the estimates were of both costs and benefits. You might need to set milestones every year for several years in order to accurately measure actual return. Doing this will make you a better estimator in the future.

Spending at the right time on capex projects is surely still more art than science. Putting formal processes in place will improve your chances for a better return, smoother cash flow, and improved profits. And, since this is an incredibly complicated area, we are happy to step in and help with any of these capex processes, so feel free to give us a call.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Prioritizing Capital Expenditures” is available now! Subscribe here: [link]

#BusinessTip: The first step in capital expenditures is to make a list of all the capital projects you want to do. Once you’ve made your list, you can begin to formalize your capital expenditure process. Each project should be detailed and estimated, with bids from vendors so that you have a very good idea of the cost. Learn more here: [link]

DID YOU KNOW… You need three processes to properly evaluate capital projects:

Initiation, estimating, and evaluating return on investment for each capex project.
Prioritization – what gets done first?
Managing and monitoring the projects once they have started.

Learn more here: [link]

Spending at the right time on capex projects is more art than science. Putting formal processes in place will improve your chances for a better return, smoother cash flow, and improved profits. Learn more in our latest blog article: [link]

Do you know how to approach capital expenditures in your business? You can learn about the processes to follow and find example tables in our latest blog article. Sign up for our newsletter to learn more: [link]

Five Ways to Welcome in a New Year: 2023

Thu, 29 Dec 2022 17:00:00 GMT

Download Volume 12, Issue 13 Document Here

BizBoost News
Volume 12, Issue 13
For distribution 12/26/22; publication 12/29/22

Five Ways to Welcome in a New Year: 2023

A new year is a perfect time for a fresh start for you and your business. Here are five ways to welcome 2023 and make it your best year ever.

1. Decide on a theme for 2023.

Setting a theme for the year can help you remember what you want to focus on. Some examples of themes might be:

Growth and improvements to your business. You can be specific, such as making your theme the year of mastering technology, the year of profitability where you focus on cutting costs or increasing sales, or the year of diversity where you focus on creating a diverse team.
Downsizing, cleansing or simplifying. Perhaps your business has grown so quickly that you need to sit back, de-clutter, re-design, or simply clean your office.
Expansion. Is it time to launch a new service?
Giving back. If everything is humming along, it could be time to start giving back to your profession or community.

From here, you can create a plan of tasks and timelines that are aligned with the theme you’ve chosen.

2. Go on a retreat.

If you need to regroup and rejuvenate from a stressful holiday season, then a retreat can do the trick. A retreat is a time to set goals for your business and make a plan. You could discover that you are on track or that you need a course correction in your business.

A retreat can be made alone or with certain team members. Typically, the events of a retreat include a combination of planning and brainstorming sessions, education, team-building, and social activities.

If a retreat sounds like too much work, then a quick vacation might be in order, just so you can enter the new year with a relaxed mind.

3. Learn from 2022.

If 2022 was a bumpy time for your business, it might be a good idea to perform a detailed review. This will help you learn what went wrong and explore why. You can then brainstorm ideas on how to avoid the pitfalls of 2022 as you move into 2023. You can make it as informal as you want, or structured as an after-action review.

4. Select a word for 2023

If setting a theme is too complicated, how about selecting one simple word for 2023? Here are some ideas:

Abundance (think big, go after large contracts and big projects)
Creativity
Powerful relationships (OK, that’s two words!)
Gratitude
Service
Humility
Forgiveness (especially good if you are in customer service or have difficult clients)
Fun
Helpful
Prosperity

I’m sure you can think of one that will be perfect for you. Once you do, write the word on several sticky notes and paste it everywhere you work and maybe even at home. Your postings will serve as a reminder of what your intention is throughout 2023.

5. Make a profit plan (AKA budget)

Making a profit plan for the new year will help you hone in on the profit amounts that you want to achieve. Understanding how much volume you need to reach and what you can spend will avoid surprises at year-end. At mid-year, it’s a good idea to see if you are on track for the rest of the year.

Whether you do one or all of the ideas above, we hope you have an awesome 2023 and that it’s your best year ever.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Five Ways to Welcome in a New Year: 2023” is available now! Subscribe here: [link]

A new year is a perfect time for a fresh start for you and your business. Learn five ways to welcome 2023 and make it your best year ever in our latest blog article: [link]

Setting a theme for the new year can help you remember what you want to focus on. Some examples of themes might be:

Growth and improvements to your business
Downsizing, cleansing or simplifying
Expansion
Giving back

Learn more in our latest blog article: [link]

#BusinessTip: A retreat is a time to set goals for your business and make a plan. You could discover that you are on track or that you need a course correction in your business. Learn more about how to get ready for the new year here: [link]

DID YOU KNOW…Making a profit plan for the new year will help you hone in on the profit amounts that you want to achieve. Understanding how much volume you need to reach and what you can spend will avoid surprises at year-end. Learn more here: [link]

Do you want to have an awesome 2023 and make sure it’s your best year ever? Learn 5 ways to accomplish this in our latest blog article: [link]

2023 is almost here! Do you know what steps you can take to reflect on the past year and prepare your business for the new one? Sign up for our newsletter to learn more: [link]

Are Your Employees “Quiet Quitting?”

Thu, 15 Dec 2022 17:00:00 GMT

Download Volume 12, Issue 12 Document Here

BizBoost News
Volume 12, Issue 12
For distribution 12/12/22; publication 12/15/22

Are Your Employees “Quiet Quitting?”

“Quiet quitting” is a very new term in 2022 that refers to one or more employees who remain working, but only do the minimum job during regular work hours. They are done going the extra mile, they are done working overtime, they are likely done caring all that much, and they may also be quite burned out.

The last three years have been anything but easy. Shortly after the closings occurred due to the pandemic, many people lost their jobs. While recovery was taking place, millions more people decided that they would either retire or take a rest for a few years. This made up what was called the Great Resignation. It took a few years for employment to come back to pre-pandemic levels.

A huge movement to work remotely simultaneously occurred, and many people have been reluctant to return to the office. Many more people suffered financial hardship, in spite of government help, and are still recovering.

All of these conditions and more have stressed employees and led to mental health challenges for millions. Thus, “quiet quitting” should not be too much of a surprise.

What Can an Employer Do?

There is quite a bit an employer can do about quiet quitting. For the entire staff, here are some tips to try:

Ensure that employees’ health plans include a robust mental health component.
Partner with a child-care and/or senior-care agency to reduce the stress of finding support for families who need it. This will help women re-enter the workforce, as they have been the most impacted.
Implement employee wellness programs designed specifically to reduce stress as well as to take care of physical and mental well-being.
Add some perks, such as employing a yoga instructor or a teacher certified in mindfulness-based stress reduction methods for an hour a week.
Encourage employees to take vacation time to reduce burnout.
Add training programs so that employees can have a chance to develop new skills.
Add an education reimbursement program where employees can go back to school and earn a degree or certificate related to their job.
Bring back the company Christmas party, picnic, or movie night so employees can socialize with each other again.

Anything that can help to refresh and rejuvenate your employees will help reduce quiet quitting in your company. While many of these can cost quite a bit, a few of them are very affordable.

On the individual level, and especially for individuals you suspect may be quiet quitting, it’s a good idea to conduct a formal process of setting goals. While this is normally done during employee performance review time, it doesn’t have to be. It can be very effective to sit down with an employee and simply ask what they want to get out of this job and what they want their future to look like.

Goal-setting encourages well-being and can give an employee something to strive for. Refreshing goals quarterly can help an employee re-engage with their job. It can also help a supervisor identify an employee who might be happy doing another job, so that a re-assignment can take place that is advantageous for both parties.

Increasing Employee Engagement

Whether your employees are quiet quitting or not, it’s always a good idea to offer programs and benefits that help employees re-engage, rejuvenate, and refresh their work on the job.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Are Your Employees ‘Quiet Quitting?’” is available now! Subscribe here: [link]

#BusinessTip: Whether your employees are quiet quitting or not, it’s always a good idea to offer programs and benefits that help employees re-engage, rejuvenate, and refresh their work on the job. Learn more here:[link]

Anything that can help to refresh and rejuvenate your employees will help reduce quiet quitting in your company. Find a list of ideas you can implement in our latest blog article: [link]

DID YOU KNOW… There is quite a bit an employer can do about quiet quitting. Learn more about quiet quitting and how you can help your employees here: [link]

On the individual level, and especially for individuals you suspect may be quiet quitting, it’s a good idea to conduct a formal process of setting goals. It can be very effective to sit down with an employee and simply ask what they want to get out of this job and what they want their future to look like. Learn more in our latest blog article: [link]

Do you suspect some of your employees are “quiet quitting?” Sign up for our newsletter to learn how you can combat this and more: [link]

What Is an Audit?

Thu, 01 Dec 2022 17:00:00 GMT

Download Volume 12, Issue 11 Document Here

BizBoost News
Volume 12, Issue 11
For distribution 11/28/22; publication 12/1/22

What Is an Audit?

The word “audit” can be thrown around a lot in casual conversation. When an accounting professional uses it, it means something very specific. We’ll discuss this and other uses of the term “audit” in this article.

Financial Audit

A financial audit is an official service designed to inspect the accounting records, technology, and processes of an organization. An audit can only be conducted by a licensed CPA that is independent of the organization.

Independence is a special term as well, meaning the CPA who audits the organization must have no relationship with the organization or its owners and employees. For example, if the organization’s owner is the sister of the auditor, that won’t work!

To conduct an audit, the CPA performs an audit program, which is a set of tasks that review the company transactions, balances, and accounting processes. The audit program is custom-designed to the company based on the risks perceived by the audit team, the type of organization being audited and other factors. Once the audit has been completed, the auditor will issue a formal report stating the findings of the audit. The report typically includes a letter, financial statements, and footnotes.

The auditor’s report can be utilized by the company’s management as well as third parties, such as lenders and stockholders.

While there are mandatory audit requirements for large public companies, government institutions, schools, and some larger nonprofit organizations, small businesses are not typically audited because of the expense. That’s when additional assurance services come in handy.

Other Assurance Services

An audit falls under assurance services in accounting, and it’s the most stringent of all. Other types of assurance services include:

Compilations. In this engagement, the CPA performs basic checks on your financial statements and puts them together with a cover letter. It basically tells a third party that you have a CPA, but it provides the least amount of assurance service.

Reviews. In a review, there are a few more checks and tests that a CPA will perform before issuing financial statements. This service provides more assurance than a compilation, but less than an audit.

Agreed-upon procedures. An engagement with agreed-upon procedures is a very specific engagement where one aspect of the business is reviewed in accordance with a specific goal.

For small businesses who are asked for documents from your accountant by a bank or lender, you can often provide one of these lower-level assurance reports and it will not only suffice, but save your money.

Auditing a Class

Auditing a class has nothing to do with accounting! It simply means you’re sitting in on a college course, but not getting any kind of credit or grade.

The Dreaded IRS Audit

The term audit can also be used informally to define an inspection that is narrower in scope, such as an IRS audit or a state agency audit. There is no assurance provided in this type of audit. The purpose of this audit is to produce whatever records you are asked for in order to verify the numbers you sent to the agency.

An audit may be somewhat of a stressful and unpleasant, but necessary, experience. Having your accountant support you along the way can be reassuring (pun intended).

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “What Is an Audit?” is available now! Subscribe here: [link]

The word “audit” can be thrown around a lot in casual conversation. When an accounting professional uses it, it means something very specific. We discuss this and other uses of the term “audit” in our latest blog article: [link]

#BusinessTip: While there are mandatory audit requirements for large public companies, government institutions, schools, and some larger nonprofit organizations, small businesses are not typically audited because of the expense. That’s when additional assurance services come in handy. Learn more here: [link]

An audit falls under assurance services in accounting, and it’s the most stringent of all. Other types of assurance services include:

-Compilations

-Reviews

-Agreed-upon procedures

Learn more about these services here: [link]

DID YOU KNOW... Independence is a special term in accounting, meaning the CPA who audits an organization must have no relationship with the organization or its owners and employees. For example, if the organization’s owner is the sister of the auditor, that won’t work! Learn more here: [link]

DID YOU KNOW… There is no assurance provided in an IRS audit or a state agency audit. The purpose of this audit is to produce whatever records you are asked for in order to verify the numbers you sent to the agency. Learn more in our latest blog article: [link]

Do you know what an audit is? Do you know the different types of assurance services? Sign up for our newsletter for an in-depth explanation: [link]

The Accounts Payable Process

Thu, 17 Nov 2022 17:00:00 GMT

Download Volume 12, Issue 10 Document Here

BizBoost News
Volume 12, Issue 10
For distribution 11/14/22; publication 11/17/22 The Accounts Payable Process

All businesses, no matter their size, have bills to pay. The larger the business, the more formal the accounts payable process tends to be. That doesn’t mean small business owners can’t benefit from a formal accounts payable process. Too many “fake” bills are being sent, and all businesses should have safeguards in place. Let’s take a look at the workflow of accounts payable to see where we can put some controls in place to protect your hard-earned money.

Purchase Order

A good first step is to initiate a purchase ordering process. All spending over a certain amount, such as $500, should require pre-approval from a manager or officer of your company. This can take the form of a purchase order.

A purchase order (PO) is simply a pledge on the part of your company to purchase an item or group of items from a particular vendor. It should include the vendor’s information, the item(s) and quantities, the price that the vendor has agreed to, and who initiated and approved the proposed purchase. It will look similar to an invoice, but it’s not an invoice and should be appropriately marked.

If the price is not standard or the items are custom, there may be an estimate from the vendor that documents the price on the purchase order. The estimate document is written by the vendor, while the purchase order is originated by your company.

While the purchase order is important, it does not create any entry on your accounting records, as no transaction has taken place yet.

Invoice

The invoice is the documentation of the purchase with a request for payment and is created by the vendor you are obtaining goods or services from. It should be recorded on your accounting books once it is received from the vendor.

The invoice should be matched with the purchase order, checking to see if each item, quantity and price match the same on the purchase order. Any discrepancies should be explained.

The timing of the invoice can vary. It may be received before or after you actually receive the goods or services that it covers.

The invoice should not be paid yet (unless prepayment is required). We’ll cover that in a minute.

Packing Slip

If the goods you have ordered are physical and are to be shipped to you, then there will usually be a packing slip or shipping document included in the shipment. The shipping document will have quantities, but may not have prices. The document should be matched with the actual items received and any shortages or overages should be noted.

A process to stock the items into your inventory should then occur. A transaction should be entered into your system to increase inventory for the goods you receive.

The (corrected) packing slip should be matched with the invoice to make sure everything on the invoice was received. If there is a discrepancy, it should be noted.

Items may come in a later shipment if they have been back-ordered. You’ll need to set up a process for that, noting it on the appropriate documents.

Approvals

As you can see, a couple of processes need to be put into place. There should be a process for each document listed above. There should also be a process for matching the documents, and there should be a process for when there are discrepancies. Last, there should be approval processes all along the way.

Your workflow may vary from the one listed above, depending on the order the documents are received and when payment is required. You may even have a different workflow for different vendors.

Once the purchase order, shipping document, and invoice have been matched and corrected, it’s time to get them approved for payment by the appropriate level of management that you desire. This is something you’ll want to set up in advance: which of your employees can spend and approve what amounts.

Payment

Once your invoice is approved, it is time to look at the payment terms, noting when payment is due. It can then be set up to be paid. This can be done inside a system, using a company credit card, sending a bank transfer or wire, or writing, signing, and mailing a manual check.

Payment affects your books as well, so an entry should be made when payment is issued.

Workflow

A great accounts payable workflow will protect your company from unauthorized payments, missing items, and even hasty purchasing decisions. There are also many accounts payable systems to support the automation of many of the steps, but don’t forget you still need to set up the processes so they work for your company and the vendors you use.

As always, if you need our recommendations, we’d be happy to help.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “The Accounts Payable Process” is available now! Subscribe here: [link]

Numerous “fake” bills are being sent out lately, and all businesses should have safeguards in place. Learn more about the workflow of accounts payable to see where you can put some controls in place to protect your hard-earned money: [link]

#BusinessTip: A good first step for your accounts payable workflow is to initiate a purchase ordering process. All spending over a certain amount, such as $500, should require pre-approval from a manager or officer of your company. Learn more: [link]

The invoice is the documentation of a purchase with a request for payment and is created by the vendor you are obtaining goods or services from. It should be recorded on your accounting books once it is received from the vendor. Learn more here: [link]

DID YOU KNOW…A purchase order (PO) is simply a pledge on the part of your company to purchase an item or group of items from a particular vendor. It will look similar to an invoice, but it’s not an invoice and should be appropriately marked. Learn more here: [link]

A great accounts payable workflow will protect your company from unauthorized payments, missing items, and even hasty purchasing decisions. Learn more in our latest blog article: [link]

There are many accounts payable systems to support the automation of your accounts payable workflow, but don’t forget you still need to set up the processes so they work for your company and the vendors you use. Sign up for our newsletter to learn more: [link]

Understanding Equity on the Partnership Balance Sheet

(Past member) — Thu, 03 Nov 2022 16:00:00 GMT

Download Volume 12, Issue 9 Document Here

BizBoost News
Volume 12, Issue 9
For distribution 10/31/22; publication 11/3/22

Understanding Equity on the Partnership Balance Sheet

The equity section of a business’s balance sheet is the most difficult part to understand. The accounts that make up that section vary depending on the type of entity in which the business is structured. In this article, let’s take a look at what the equity section looks like for companies that are organized as partnerships.

The Equity Section

As a reminder, the balance sheet has three major sections: assets, liabilities, and equity. The equity section focuses on the investments that the owners have in the business. For partners, it consists of their capital accounts. The section could look like this:

Partners’ Capital

Partner A Capital $25,000

Partner B Capital $25,000

Partner C Capital $50,000

Each partner has their own Capital account within the equity section of the balance sheet. A partnership with 100 partners will have 100 capital accounts in the equity section. Computing the balance for each partner is where the work comes in.

A partner’s capital account balance is affected by numerous transactions throughout the year as well as current earnings, which are distributed to the partners based on their ownership percentages. Ownership rules and percentages are spelled out in the partnership agreement.

Items Affecting Partners’ Capital

To compute a partner’s capital account balance, here is the basic formula:

Balance at beginning of period

Plus Contributions

+/- Partner’s share of net income/loss

Less Withdrawals

= Balance at end of period

Contributions to capital includes money that the partner has given the partnership out of their personal assets. Withdrawals are the opposite: this is money that the partner has taken out of the partnership and used for their personal use.

Net income is a bit more involved, with two more steps. First, the sum of the entire partnership’s income and expense accounts must be calculated. This number should be the same number as net profit or loss on the partnership’s income statement, from the beginning of the year to your balance sheet date. Second, the net income must be divided up to calculate each partner’s share based on their ownership percentages. These amounts are then rolled into each partner’s capital accounts.

To make sure the partnership equity section is accurate, good recordkeeping is a must for the partnership as well as each of the individual partners. If we can help you understand more about your partnership, please reach out any time.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Understanding Equity on the Partnership Balance Sheet” is available now! Subscribe here: [link]

The equity section of a business’s balance sheet is the most difficult part to understand. The accounts that make up that section vary depending on the type of entity in which the business is structured. Take a look at what the equity section looks like for companies that are organized as partnerships in our latest blog article: [link]

The balance sheet of a business has three major sections: assets, liabilities, and equity. The equity section focuses on the investments that the owners have in the business. For partners, it consists of their capital accounts. Learn more in our latest blog article: [link]

#BusinessTip: A partner’s capital account balance is affected by numerous transactions throughout the year as well as current earnings, which are distributed to the partners based on their ownership percentages. Ownership rules and percentages are spelled out in the partnership agreement. Learn more here: [link]

To make sure the partnership equity section of a company’s balance sheet is accurate, good recordkeeping is a must for the partnership as well as each of the individual partners. Learn more in our latest blog article: [link]

DID YOU KNOW…To compute a partner’s capital account balance, the basic formula is:

Balance at beginning of period

Plus Contributions

+/- Partner’s share of net income/loss

Less Withdrawals

= Balance at end of period

Learn more here: [link]

DID YOU KNOW… Each partner in a buisness has their own Capital account within the equity section of the balance sheet. A partnership with 100 partners will have 100 capital accounts in the equity section. Learn more in our latest blog article: [link]

Do you understand the equity section of your business’s balance sheet? This can be a complicated section to comprehend, but is very important. Sign up for our newsletter to learn more: [link]

Pricing Methods

Mon, 24 Oct 2022 17:51:48 GMT

Download Volume 12, Issue 8 Document Here

BizBoost News
Volume 12, Issue 8
For distribution 10/17/22; publication 10/20/22

Pricing Methods

How do you arrive at a price for the products and services you sell? While it depends on what industry your business is in, there are only a handful of foundational pricing methods that are useful to know. Here are several of them.

Time and Materials Pricing

Many service-based businesses price based on the time spent performing the service. An attorney usually has an hourly rate. A massage-therapist will charge based on a 50- or 80-minute service. Plumbers charge a minimum fee for the first hour and another rate for subsequent hours. A moving company charges by the hour (they may also charge by truck or have a fuel charge these days).

In some cases, time-based pricing may be loosely tied to the salary level of the person performing the service, but there must be a substantial markup to cover payroll taxes, health insurance, overhead, training, and any materials or tools that are included.

Cost-Plus Pricing

Cost-plus pricing is used in the retail industry where goods purchased from a manufacturer or wholesaler and made available for sale. This method is based on the cost of the item. A common example is keystone pricing, where an item is marked up to twice the purchase price plus one dollar.

Other industries that use cost-plus include groceries and auto dealers.

Market Pricing

Market pricing is pricing that is dependent on fluctuating market conditions. Commodities are the best example. Crops, oil and gas, and metals are a few items that are priced by market.

Target Pricing

Target pricing is where you start with a price that you feel customers will be willing to pay, then design a service or product around it. It’s most commonly used in the software industry. As an example, let’s say you come up with an idea for a software application that you feel people will pay $49 per month for. You then build a software development and support team around a budget that supports that price.

Value Pricing

Value pricing is based on what the client values and will pay for. For projects, it can be based on the client’s expected return on investment. Value pricing is used in internet marketing and for some services and products.

There is a fine line between premium pricing and value pricing. Some luxury brands may be premium-priced with some value pricing thrown in.

Pricing in Real Life

In business, determining a product or service’s price is part math and part art. It can be a combination of two or more of the methods listed above, or a method not listed above. Many factors and considerations should go into your pricing decisions.

One thing we can help with is to determine if your pricing is adequate for the profit margins you want. We can also help with what-ifs. For example, if you raised your price by ten dollars, but demand went down five percent, what would your numbers look like?

Pricing is a skill to pick up, just like selling, running a business, and customer service are skills you need. If we can help you with your pricing process, please reach out any time.

***

Tweets

Many service-based businesses price based on the time spent performing the service.

#BusinessTip: Pricing is a skill to pick up, just like selling, running a business, and customer service are skills you need.

DID YOU KNOW…Cost-plus pricing is used in the retail industry where goods purchased from a manufacturer or wholesaler and made available for sale. This method is based on the cost of the item.

DID YOU KNOW… In business, determining a product or service’s price is part math and part art. Many factors and considerations should go into your pricing decisions.

Do you know if your pricing is adequate for the profit margins you want?

Do you know what pricing method works best for your company? There are numerous methods to choose from, each with their own approach depending on your business.

Time Batching

Mon, 10 Oct 2022 17:26:37 GMT

Download Volume 12, Issue 7 Document Here

BizBoost News
Volume 12, Issue 7
For distribution 10/3/22; publication 10/6/22

Time Batching

For small business owners, it seems like there is never enough time to get everything accomplished. One tool that will help you get the most out of your time is time batching, also called time blocking. If you haven’t heard of this before, it can revolutionize the way you approach work.

What Is Time Batching?

Time batching is where you group like tasks together on your calendar to gain economies of scale. Almost everything can be batched: answering emails, running errands, customer calls or appointments, employees’ questions, and even meetings.

Here are a couple of examples. Instead of running to the office supply on Tuesday, going to the printer on Thursday, and visiting the warehouse on Friday, why not do it all on Wednesday in one trip? Instead of answering emails throughout the day, plan to answer them for 30 minutes at 8AM, 1PM, and 4:30PM. Instead of having appointments scattered throughout the week, make them back-to-back on Monday.

The beauty to time batching is that your brain will be less exhausted at the end of the day. The reason is interruptions are minimized, as are switching costs. Switching cost is the time it takes your brain to switch from one task to the next. Too much switching strains the brain by making it change gears frequently. Time batching helps your brain get into and stay in “flow,” with more work accomplished in less overall time.

Business and Personal

You don’t have to restrict time batching to your work life. It’s likely you are already practicing time batching at home and don’t know it. When you prepare the week’s meals on Sunday or wash several loads of laundry in a row, you are practicing a form of time batching.

While some things can’t be batched, like walking the dog, many more can. You just need to be open to the possibilities.

The Highest Payoff

The highest payoff with time batching comes when you can reduce the interruptions that happen to you the most. For example, when an employee has a question, could they write them down during the day and approach you at the end of the day with all of them at once?

Emails and texts are constant interruptions for many. The first thing to do is turn off your email and text notifications so that you’re not interrupted every time one comes in. Then, decide how often during the day you want to check for new items. Aim for three or fewer times if your job allows it.

Phone calls can be another interruption. When possible, encourage callers to schedule a time to call you or let them know how much more efficient email is.

Getting It All Done

Time batching is something that you can practice for years and still get better at. Try implementing one piece of time batching at a time to avoid overwhelming yourself with change. Look intentionally for more items to batch every few months, no matter how long you’ve been practicing.

Time batching will not only help you get home sooner to your personal life; you’ll also be less drained and more energized at the end of the day. Try it and see what you think.

***

Tweets:

DID YOU KNOW… time batching can help decrease brain exhaustion. This method minimizes interruptions, which decreases switching costs.

#BusinessTip: One tool that will help you get the most out of your time is time batching, also called time blocking. If you haven’t heard of this before, it can revolutionize the way you approach work.

Switching cost is the time it takes your brain to switch from one task to the next. Too much switching strains the brain by making it change gears frequently.

DID YOU KNOW… Time batching is where you group like tasks together on your calendar to gain economies of scale. Almost everything can be batched: answering emails, running errands, customer calls or appointments, employees’ questions, and even meetings.

Do you utilize time batching? Time batching will not only help you get home sooner to your personal life; you’ll also be less drained and more energized at the end of the day.

Have you heard of time batching and switching costs? Knowing how to utilize these strategies in your day-to-day life can help increase productivity and decrease brain exhaustion.

Understanding Equity on the Corporate Balance Sheet

Wed, 28 Sep 2022 12:02:26 GMT

Download Volume 12, Issue 6 Document Here

BizBoost News
Volume 12, Issue 6
For distribution 9/19/22; publication 9/22/22

Understanding Equity on the Corporate Balance Sheet

Your favorite number on the balance sheet might just be Cash. It’s easy to understand and something every business has. But there is a more meaningful number, at least in the long-term sense, and that’s equity. Let’s dive deeper into that part of the balance sheet.

The Equity Section

As a reminder, the balance sheet has three major sections: assets, liabilities, and equity. When it comes to equity, the accounts that are displayed are dependent on the type of entity of your business. Your business could be a sole proprietorship, a partnership, a corporation, or something else. In this article, let’s focus on equity in a corporation.

Every corporation should have at least three equity accounts.

1. Stock.

This account should reflect the amount of stock issued by the corporation. The amount and price of each share is usually spelled out in the Articles of Incorporation, the initial legal document of the corporation. For example, if the amount of shares the corporation can issue is 100,000, and they have a par value of $.01, then your stock account balance should be $1,000, which was paid in by cash by the corporation’s owner(s).

This account might also be named Capital Stock, Common Stock, or something similar. This account’s balance typically doesn’t change much over time for a small business. It’s only when new stock is purchased (issued), sold, retired or repurchased (by the corporation) that the account will see changes.

2. Additional Paid in Capital (APIC)

Additional Paid in Capital occurs when investors and business owners pay in more than the par value price of stock. The balance represents the difference between what owners/investors paid into the company and the par value of the company stock.

3. Retained Earnings

Retained Earnings is where the action is and is an important number to understand. It’s the accumulated earnings of the company less any dividends paid to shareholders.

For a small business, retained earnings will change once a year at the end of the fiscal year when net profit (or loss) from the current year is rolled into the retained earnings account. At this time, all of the income and expense accounts are zeroed out to start over for the new year, and the balance (which is profit or loss) is added (or subtracted, in the case of loss) to retained earnings. Your accounting system automatically does this for you, and you can check it out by running a balance sheet as of the last day of your fiscal year, then running a balance sheet on the following day – the first day on the next fiscal year and comparing what changed.

You can reconcile retained earnings by adding up all of your profits and losses for each year you are in business. Then subtract any dividends paid throughout the years, and you should come out with your retained earnings balance. You can have a negative retained earnings balance.

The retained earnings number is a measure of the long-term value of the business. It also plays a large role in determining your basis, or investment, so to speak, in the company, which is used for tax purposes.

An S Corporation will have an additional fourth account in its Equity section.

4. Distributions

Distributions represent the money that the S Corporation owner has taken out of the business. This money is over and above the salary that is paid to the owner. It must be tracked for tax purposes, which is why it has a separate account on the balance sheet. In simple terms, distributions are generally not taxable as long as the owner has enough basis to cover them. In this way, distributions are different from dividends that are issued in C Corporations, since they are taxable.

Last, if you run a balance sheet report in your accounting system on any date during the year, you may see an additional account:

5. Current Year Earnings

This is the sum of all of your income and expense accounts. It should be the same number as net profit or loss on your income statement from the beginning of the year to your balance sheet date. On a formal balance sheet for external purposes, this number is rolled into the retained earnings account.

The equity section can be the most difficult section to understand on the balance sheet. Hopefully, the explanation above will provide a bit more clarity as well as shine a light on the significance of the retained earnings balance.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Understanding Equity on the Corporate Balance Sheet” is available now! Subscribe here: [link]

Your favorite number on the balance sheet might just be Cash. It’s easy to understand and something every business has. But there is a more meaningful number, at least in the long-term sense, and that’s equity. Dive deeper into that part of the balance sheet in our latest blog article: [link]

DID YOU KNOW… Aside from Stock, Additional Paid in Capital (APIC), and Retained Earnings equity accounts, an S Corporation will have an additional fourth account in its Equity section: Distributions. Learn more in our latest blog article: [link]

#BusinessTip: Every corporation should have at least three equity accounts:

1) Stock

2) Additional Paid in Capital (APIC)

3) Retained Earnings

Learn more about these accounts in our blog article: [link]

The balance sheet has three major sections: assets, liabilities, and equity. When it comes to equity, the accounts that are displayed are dependent on the type of entity of your business. In our latest article, we focus on equity in a corporation. Learn more here: [link]

DID YOU KNOW… The stock equity account should reflect the amount of stock issued by the corporation. The amount and price of each share is usually spelled out in the Articles of Incorporation, the initial legal document of the corporation. Click here to learn more: [link]

#BusinessTip: If you run a balance sheet report in your accounting system on any date during the year, you may see an additional account: Current Year Earnings. This is the sum of all of your income and expense accounts. Learn more in our latest blog article: [link]

Do you understand equity? Sign up for our newsletter to explore this part of the balance sheet in depth: [link]

Cool Tech Tools: ClickUp™

Wed, 28 Sep 2022 12:00:36 GMT

Download Volume 12, Issue 5 Document Here

BizBoost News
Volume 12, Issue 5
For distribution 9/5/22; publication 9/8/22

Cool Tech Tools: ClickUp

ClickUp™ is a versatile new web application that serves multiple functions for a small business. It’s primarily a CRM – customer relationship management – with project management and workflow features built in, and is adaptable across several industries.

ClickUp’s goal for its users is to save time and reduce redundancy by tying everything together in one app. Its integrations, which are called ClickApps, are truly its strength. The 1,000+ integrations set ClickUp apart from other offerings, and for this reason, ClickUp excels at automating processes that use multiple apps, including hard-to-automate processes like customer onboarding.

Some of the items people use ClickUp for include reminders, goals, whiteboards, templates, calendars, document flow, task management, dashboards, marketing processes, and team collaboration and communication.

One of the features that is frequently mentioned is the ability to create custom views exactly the way you want them. Views provide a summary of your work and come in many flavors. You can create task views, list views, boards, calendars, Gantt views, workload views, and box views.

If ClickUp has a weakness, it would be its complexity. You really need to be somewhat tech-savvy to get everything set up. The learning curve can be intimidating, but once you get through it, there is so much power in having everything customized and in one platform.

ClickUp does have a following of power users, and a certification of sorts is offered. Becoming ClickUp Verified means that you’ve earned expertise in the product. If the learning curve is too much for you or your team members, you can hire one of these ClickUp consultants to do the setup for you.

As of this writing, ClickUp hosts 4,000,000 users, including the ones on the free version that is for personal use. Monthly pricing for business users ranges from $5 to $19 per user, depending on the features you need. Enterprise options are also available.

ClickUp was founded in 2017, is headquartered in San Diego, CA, and has raised three rounds of funding as of this writing. You can find out more at clickup.com.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Cool Tech Tools: ClickUp™” is available now! Subscribe here: [link]

ClickUp’s goal for its users is to save time and reduce redundancy by tying everything together in one app. Its integrations, which are called ClickApps, are truly its strength. Learn more in our latest blog article: [link]

#BusinessTip: ClickUp™ is a great application for small businesses, and monthly pricing for business users ranges from $5 to $19 per user, depending on the features you need. Learn more here: [link]

Are you looking for a new CRM for your small business? ClickUp™ may be the perfect fit! Learn more about this new web application here: [link]

DID YOU KNOW… ClickUp™, a versatile new web application, offers 1,000+ integrations, allowing it to excel at automating processes that use multiple apps, including hard-to-automate processes like customer onboarding. Learn more here: [link]

Do you want to be more organized in your small business? ClickUp™ can be used for reminders, goals, whiteboards, templates, calendars, document flow, task management, dashboards, marketing processes, and team collaboration and communication – all in one place! Learn more in our latest blog article: [link]

Have you heard of ClickUp™? It’s primarily a CRM – customer relationship management – with project management and workflow features built in, and is adaptable across several industries. Sign up for our newsletter to learn more: [link]

When Your Remote Employee Lives and Works in Another State

Fri, 26 Aug 2022 12:20:41 GMT

Download Volume 12, Issue 4 Document Here

BizBoost News
Volume 12, Issue 4
For distribution 8/22/22; publication 8/25/22

When Your Remote Employee Lives and Works in Another State

Remote working has exploded in the last few years, especially in professional services. Now that companies are seeing the benefits of remote working, they are also seeing the benefits of an expanded pool of potential employees. Some firms are hiring employees that live several states away from where the office is located, which comes with quite a few ramifications for the business.

Let’s say your business is based in Texas. You already file quarterly payroll reports and pay federal payroll taxes for your Texas-based employees. You also already file all the required state payroll reports and have Texas workers compensation. In May, you hired an employee that lives in Cleveland, OH. And in June, you hired an employee that lives in San Francisco, CA. You’ll need to get set up to pay employees in each of these states:

You may need to get set up as a Foreign Corporation in these states (the exact paperwork depends on your type of entity as well as the state’s requirements and where your business originates). This means filing legal paperwork as well as complying with annual tax filings and statements of information. You may also need to hire a firm who can be your registered agent and legal contact in that state.
You must get workers compensation in those two states.
You must sign up with the unemployment agency in those states. For California, it’s the EDD (Employee Development Department), and for Ohio, it’s the Ohio Department of Job and Family Services.
You’ll need to work with your payroll provider to give them your account numbers so they can accurately create the paychecks with the appropriate state withholdings.

We’re not quite done yet. You’ll need to make sure you file the correct quarterly payroll reports in addition to your federal ones. Continuing our example: in California, this consists of Forms DE-9 and DE-9C, Quarterly Contribution Return and Report of Wages. In Ohio, there are multiple forms: one for SUTA, IT 3, IT 941, and IT 501, all with exacting filing requirements.

Some states that are small and close together may have exceptions that you can follow to save time.

Nexus

Having an employee in another state creates nexus for your organization, which means that you may have additional tax and legal requirements beyond payroll taxes.

If you have sales in these states, you may also need to collect and remit sales tax on those sales and file sales tax returns. The first step is to register with the sales tax agency in the state.
As the business owner, you may even need to file a state income tax return and pay state income taxes as an individual, even if you’ve never set foot in that state!

Hiring a remote worker is so easy, but the paperwork that comes after it is anything but easy. Make sure you stay in compliance with all the tax and legal requirements of hiring an out-of-state worker. There can be some lead time in getting all this set up, so be sure to plan for this prior to your new employee’s start date.

As always, if you need help with any of these overwhelming tasks, please feel free to reach out to us any time.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “When Your Remote Employee Lives and Works in Another State” is available now! Subscribe here: [link]

DID YOU KNOW…If you hire remote workers who live outside of the state your company is based in, there are many things you’ll need to do in order to pay these employees, including:

•Setting up as a Foreign Corporation in these states

•Getting workers compensation in those states

•Signing up with the unemployment agency in those states

•Working with your payroll provider to give them your account numbers so they can accurately create the paychecks with the appropriate state withholdings

Learn more in our latest blog article: [link]

#BusinessTip: Having an employee in another state creates nexus for your organization, which means that you may have additional tax and legal requirements beyond payroll taxes. Learn more in our latest blog article: [link]

Do you know the ramifications of hiring remote employees who live in a different state? Learn how you can prepare in our latest blog article: [link]

DID YOU KNOW… Hiring a remote worker is so easy, but the paperwork that comes after it is anything but easy. Learn how you can make sure you stay in compliance with all the tax and legal requirements of hiring an out-of-state worker here: [link]

Do you know what Nexus is when it comes to your company’s employees? Here’s a hint - having an employee in another state creates nexus for your organization. Learn more in our latest blog article: [link]

Remote working has exploded in the last few years, especially in professional services. Sign up for our newsletter to learn what you’ll need to do in order to stay in compliance when hiring remote workers in other states: [link]

Is Your Best Skill Aligned with Your Business Model?

Fri, 26 Aug 2022 12:15:32 GMT

Download Volume 12, Issue 3 Document Here

BizBoost News
Volume 12, Issue 3
For distribution 8/8/22; publication 8/11/22

Is Your Best Skill Aligned with Your Business Model?

When starting a business, most entrepreneurs excel at the specific technical skill set they need in order to deliver their services and products to clients. For example, if you own a bike shop, you are pretty great at all things related to bikes. If you own a law firm, you are probably good at practicing law. This skill is your core skill.

As your business grows, you need different skills beyond your core skill in order to thrive. That skill depends on the type of business model you want to succeed at. Here are some examples of business models and the key skill you need to be outrageously successful.

People-Based Business Model = Leadership

If your business is one of the 25 percent of small businesses that have employees and you have a team that serves customers, then you most likely have a people-based business model. The revenue you earn is dependent on how your people perform and serve clients.

Some examples would be a mid-sized law firm, a nail salon, a marketing agency, and a mid-sized plumbing company. Each one has a team of people that generate revenue.

These people need to be hired, trained, and motivated, and that is where the skill comes in. If you have a business model like this, you need to excel at leadership, which includes managing people as well as hiring and firing. You need to be great at developing a productive, happy team in order to reach your highest pinnacle of success. Your core skill is still needed, but without leadership skills, you won’t grow as much as you could.

Acquisition-Based Business Model = Negotiation

Some companies grow through acquisition of other companies. In this case, your top skill should be negotiation; you will need to make excellent deals to keep your business growing.

Project-Based Business Model = Project Management

If your job revolves around delivering large projects, such as construction, possibly IT companies, and some real estate, then your business model might be project-based. While knowing how to be a general contractor might be your core skill, your top skill should become project management.

How well you manage the project timeline, delivery of materials, and management of the right number of people with the right skill at the right time all factors into completing the project as quickly and profitably as you can, with the quality needed so you can move to the next one.

Volume-Based Business Model = Merchandising

If moving high quantities of products or services is your business model, then your revenue depends on volume and how much you can sell. Some examples of these types of firms include grocery stores, software companies, some retail stores, and wholesalers.

How you display and market your products will affect how many customers you can get in the door and how fast you can sell. Your top skill should become merchandising and all things marketing.

Your Top Skill Is No Longer Your Core Skill

These four types of business models serve as a sampling to show that once you achieve some level of success, your core skill will no longer be the keystone to further success. Developing skills beyond your core skill will take you farther than you ever imagined you could go with your business.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Is Your Best Skill Aligned with Your Business Model?” is available now! Subscribe here: [link]

When starting a business, most entrepreneurs excel at the specific technical skill set they need in order to deliver their services and products to clients. This skill is your core skill. As your business grows, you need different skills beyond your core skill in order to thrive. That skill depends on the type of business model you want to succeed at. Learn more in our latest blog article: [link]

If your business is one of the 25 percent of small businesses that have employees and you have a team that serves customers, then you most likely have a people-based business model. Without leadership skills, you won’t grow as much as you could. Learn more in our latest blog article: [link]

#BusinessTip: In an acquisition-based business model, negotiation skills are key; you will need to make excellent deals to keep your business growing. Learn more here: [link]

If moving high quantities of products or services is your business model, then your revenue depends on volume and how much you can sell. How you display and market your products will affect how many customers you can get in the door and how fast you can sell. Your top skill should become merchandising and all things marketing. Learn more here: [link]

Do you know the difference between your core skill and your top skill? Learn the difference and how these skills match to different business types in our latest blog article: [link]

Have you ever thought about whether your best skills are aligned with your business model? What you thrive at may not be the top skill needed for your company to thrive. Sign up for our newsletter to learn more: [link]

Five Subtle Ways to Carve Out More Business Profit

Wed, 27 Jul 2022 10:57:43 GMT

Download Volume 12, Issue 2 Document Here

BizBoost News
Volume 12, Issue 2
For distribution 7/25/22; publication 7/28/22

Five Subtle Ways to Carve Out More Business Profit

Whether we’re headed for a recession or not, it’s always a good time to squeak out more profits from your business books. We’re not talking about drastically slashing expenses or spending a lot to raise revenue; the tips in this article are long-term ideas to gently lift up your profits.

Timing on Capital Purchases

The timing of asset purchases, such as equipment, a truck, or even a PC, can be tricky. Understanding the best timing for asset purchases and replacements can make a difference in your profits.

When purchasing a new asset, gain a good understanding of the return on investment so that you’re prepared from a cash flow standpoint. With more complex businesses, it’s a good idea to hire an accountant who knows your industry and has capital expenditure experience.

When replacing an asset, it should be timed so that the asset is replaced before you have to spend a lot on repairs, but not so soon that you don’t get good use out of it.

Rent and Utility Contracts

When rent and utility contracts come up for renewal, this is the time to bargain. If your landlord hasn’t fixed something, you can at least use pressure to get the repairs accelerated.

For utility contracts, especially internet and phone, the price often goes up when the contract runs out. This is the time to get it lowered back down by asking for a new customer deal (it never hurts to ask!). Communications companies are constantly creating new deals and packages, so you should be able to jump into one of those to keep your costs from going up.

Profit in Leftovers

What assets have you got lying around that aren’t working for you? Put them to work!

Here are some examples:

1.      Cash – make sure your excess cash is safely invested or at least in an interest-bearing account.
2.      Extra space – rent out space that you are not using or only using some days. This solution can have many different looks to it beyond the monthly renter. As an example, virtual workers looking for a conference room for a day could be a money-maker for you.
3.      Manufacturing firms can sell the scrap from their assembly lines as well as their obsolete inventory.
4.      Excess construction materials can be sold, donated, stored for the next job, used on a new small project, or used as firewood.

Training

If employees are wasting time, they are wasting money in the form of salary you pay them. There are three good solutions:

1.      Offer training – perhaps they haven’t been shown what to do correctly or how to do it efficiently. Or they may need to break bad habits.
2.      Re-energize employees with incentives, new benefits, or motivational training and events.
3.      Redesign your processes and automation, then retrain – it could be your workflow needs revamping to make it more efficient.

If these options don’t work, it could be your employee is a bad fit. You know what you have to do in that case.

Stop the Subscriptions

Those recurring monthly charges just keep adding up. The average small business uses dozens of apps, meaning they also likely have dozens of $20 to $50 automatic monthly charges going on a credit card somewhere in your business. This includes magazines, memberships, dues, conferences, newsletters, gadgets, and software.

If you’re making a lot of money, you may have trouble finding the time to research what subscriptions you really need versus what you don’t. But in the long run, you will make more the sooner you sit down and examine this area of spending. Stop the $20 to $50 madness by reassessing what subscriptions you really need and cancelling the ones you don’t.

Try these five ideas to give your profits a permanent, long-term boost.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Five Subtle Ways to Carve Out More Business Profit” is available now! Subscribe here: [link]

The timing of asset purchases, such as equipment, a truck, or even a PC, can be tricky. Understanding the best timing for asset purchases and replacements can make a difference in your profits. Learn more in our latest blog article: [link]

#BusinessTip: When rent and utility contracts come up for renewal, this is the time to bargain. If your landlord hasn’t fixed something, you can at least use pressure to get the repairs accelerated. For utility contracts, especially internet and phone, the price often goes up when the contract runs out. This is the time to get it lowered back down by asking for a new customer deal (it never hurts to ask!). Learn more here: [link]

#BusinessTip: You can find profit in your leftovers! What assets have you got lying around that aren’t working for you? Put them to work! Find some examples here: [link]

If employees are wasting time, they are wasting money in the form of salary you pay them. There are three good solutions:

1. Offer training – perhaps they haven’t been shown what to do correctly or how to do it efficiently. Or they may need to break bad habits.

2. Re-energize employees with incentives, new benefits, or motivational training and events.

3. Redesign your processes and automation, then retrain – it could be your workflow needs revamping to make it more efficient.

Learn more here: [link]

The average small business uses dozens of apps, meaning they also likely have dozens of $20 to $50 automatic monthly charges going on a credit card somewhere in your business. If you’re making a lot of money, you may have trouble finding the time to research what subscriptions you really need versus what you don’t. But in the long run, you will make more the sooner you sit down and examine this area of spending. Learn more in our latest blog article: [link]

Are you looking for ways to increase profits in your business? Sign up for our newsletter to learn 5 ways to carve out more business profits: [link]

Unravel Your Competitors’ Secrets with Mystery Shopping

Wed, 27 Jul 2022 10:56:02 GMT

Download Volume 12, Issue 1 Document Here

BizBoost News
Volume 12, Issue 1
For distribution 7/11/22; publication 7/14/22

Unravel Your Competitors’ Secrets with Mystery Shopping

Every business has competitors of one sort or another, and in many industries, it’s crucial to know what your competition is offering their customers. The good news is you can often find out what your competition is up to, and this is where mystery shoppers come into play.

A mystery shopper is a person who is hired to visit and shop your competitors for the purposes of sharing information about their experience. Mystery shopping is one way to collect input so you can complete a Competitive Analysis – a report on who your competitors are and what they are doing. This report should be part of your marketing plan and will help you spend your marketing dollars wisely.

Let’s say you own a fabric store, and you want to know what other stores in your area are doing. You can make a list of the four or five fabric stores in the three zip codes around you. You would then provide that list to your mystery shopper, who would visit each of the stores. You might also provide your mystery shopper with a list of questions or a checklist of things to observe and/or purchase. The mystery shopper will take detailed notes about their experiences at each place and report their findings back to you.

From your mystery shopper’s notes, you can find out many things:

How does their storefront look? What is their curb appeal?
Was it easy to find parking or was it congested?
What are their opening hours and do they open on time? Are there people waiting to get into the store at opening time? Or do you need an appointment or reservation to use their services?
Did employees provide a greeting when entering the business? How friendly or approachable are the employees?
How does the store look? Is it crammed full with items or sparse?
What kind of displays do they have and how attractive are they?
Is their inventory broad or deep or both? What type of items and brands do they carry compared to our store? Are there brands, items, or product lines I should be carrying that they do that I don’t?
If a service firm, what does their waiting area look like? What do their service areas look like?
Were there a lot of customers in the store? How long are the checkout lines?
How clean is the store? Do you feel comfortable with the level of cleanliness?
Taking a sample of items and checking price, how do my prices compare with theirs?
What was the purchase experience like? Were you offered an upsell or a coupon? What does the checkout area look like? Were customers offered a bag for the items?
What was it like to return an item? How strict is the return policy, and was the service friendly or hesitant?
Was there follow-up, such as with email promotions or a thank-you note?

You can also find quite a bit online to supplement your competitor research, but the focus here is on the face-to-face experience.

Mystery shopping is not just for retail; you can use it for professional and personal services, health care, some real estate services, restaurants, trades, and nonprofits. You can also adapt the idea to other industries, such as construction and manufacturing.

Once you have compiled the information on your competitors, you can look for ideas to improve your business that are in line with your own business brand and culture. These improvements are often in the area of customer service, but can also include adding inventory, changing hours, adding store features or events, and more. You may even be able to find ideas to implement at a lower cost than your competitors, giving you an edge on profits.

Where do you find a mystery shopper? You can hire individuals or a company that specializes in providing mystery shoppers. Many people consider a friend for this role to save money, but we don’t recommend it unless they are trained observers with significant customer service experience. You’ll need a budget to pay the shoppers for their time as well as what they will be purchasing on your behalf.

Hiring mystery shoppers provides easy access to your competition and is very often well worth the time and money spent.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Unravel Your Competitors’ Secrets with Mystery Shopping” is available now! Subscribe here: [link]

Every business has competitors of one sort or another, and in many industries, it’s crucial to know what your competition is offering their customers. One way to do this is by utilizing mystery shoppers. Learn more in our latest blog article: [link]

A mystery shopper is a person who is hired to visit and shop your competitors for the purposes of sharing information about their experience. Learn more in our latest blog article: [link]

#BusinessTip: Mystery shopping is one way to collect input so you can complete a Competitive Analysis – a report on who your competitors are and what they are doing. Learn more about how mystery shopping can help you learn about your competitors here: [link]

Do you know what a mystery shopper can help you learn about your business and your competitors? Find a list of questions and learn more about the benefits of utilizing a mystery shopper here: [link]

DID YOU KNOW.. Mystery shopping is not just for retail; you can use it for professional and personal services, health care, some real estate services, restaurants, trades, and nonprofits. You can also adapt the idea to other industries, such as construction and manufacturing. Learn more here: [link]

Hiring mystery shoppers provides easy access to your competition and is very often well worth the time and money spent. Learn more about how utilizing mystery shoppers can help your business in our latest blog article: [link]

How to Make Accountability Work

Mon, 27 Jun 2022 14:21:47 GMT

Download Volume 11, Issue 27 Document Here

BizBoost News
Volume 11, Issue 27
For distribution 6/27/22; publication 6/30/22

How to Make Accountability Work

Almost every successful business owner craves accountability. We’re wired to respond to crises and to help others, sometimes before we help ourselves. Entrepreneurs are excellent in running their day-to-day businesses, but some need more accountability to meet internal deadlines and long-term goals. Let’s take a look at how we can increase our accountability.

Setting Goals and Deadlines

The first step to being accountable is to have something you want to achieve, and this means setting goals. We all have projects we want to do that haven’t been done for a variety of reasons. Just choose one, and make a timeline of tasks and milestones that you would like to be held accountable for. Mark your calendar for each milestone and the project’s end date. Display your list of milestone dates prominently on your desk or wall where you work. Carve out time to work on your project by blocking out your calendar.

Connect with Your Purpose

Take some time to analyze why you want to complete your project. How does it connect with your business purpose, mission, vision, and values? Document your why and display it prominently next to your milestone list. This will help you stay focused.

Publish Your Goals Publicly

Use social media or another means of communication to share your goals publicly with peers, friends, or co-workers. At this point, it becomes “real” for many entrepreneurs. It’s a big step to put yourself out there. Now you have to do it or face embarrassment and other consequences later. It may feel scary to do it, but this step works!

Consider an Accountability Partner

Some people do very well by partnering with a peer or trusted business person. This can be a mentor, a paid coach, an advisory board, a mastermind group of people, a nonprofit group, a co-working group, a peer, a vendor, an incubator, or an investor. Most experts do not recommend that you choose a friend.

Your relationship can be one-way or two-way. Perhaps you will hold them responsible for something they want to achieve, so that the relationship is reciprocal.

Tell your accountability partner to push you and to be candid and honest. They may need your permission if it’s an informal arrangement. Set meetings in advance every week (or two weeks), where you review your progress and report on your milestones. Allow your partner to point out mistakes, or acknowledge them yourself. Make course corrections, using your partner as a sounding board.

Make sure you are candid and honest as well, focusing on results and not excuses. Know when you’re procrastinating and dig deep to discover why. Often, it can be a lack of resources or time, but coupled with that is usually a mindset issue or simply fear of failure that needs to be brought to the surface.

Celebrate

Celebrate every milestone achieved. Reward yourself, especially if it’s a project you’ve been putting off for years that is finally getting off the ground. This reinforces positive behavior and creates enthusiasm and momentum.

Beyond Project Accountability

You can use this same formula to achieve accountability in many areas of your business, such as these areas:

Financial accountability via your accounting firm or financial consultant
Staffing or supervising accountability via HR consultants or a coach
Technology accountability, via an IT firm or consultant

This type of accountability makes the functions of your business run better. You can also apply these ideas to your personal life goals.

Accountability can make a tremendous difference in achieving the success you want, so try it and let us know how it’s working for you.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “How to Make Accountability Work” is available now! Subscribe here: [link]

Almost every successful business owner craves accountability. We’re wired to respond to crises and to help others, sometimes before we help ourselves. Learn how you can increase your accountability in our latest blog article: [link]

Do you struggle to keep yourself accountable? Take some time to analyze why you want to complete the project at hand. How does it connect with your business purpose, mission, vision, and values? This will help you stay focused. Learn more in our latest blog article: [link]

#BusinessTip: The first step to being accountable is to have something you want to achieve, and this means setting goals. We all have projects we want to do that haven’t been done for a variety of reasons. Just choose one, and make a timeline of tasks and milestones that you would like to be held accountable for. Learn more here: [link]

Have you ever considered getting an accountability partner? An accountability partner can push you, and help you review your progress and report on your milestones. A partner can point out mistakes, and help you make course corrections in your business. Learn more here: [link]

Entrepreneurs are excellent in running their day-to-day businesses, but some need more accountability to meet internal deadlines and long-term goals. Learn how to increase accountability here: [link]

Beyond project accountability, you can use the formula from our latest blog article to achieve accountability in many areas of your business, such as:

•Financial accountability via your accounting firm or financial consultant
•Staffing or supervising accountability via HR consultants or a coach
•Technology accountability, via an IT firm or consultant
Learn more here: [link]

Accountability can make a tremendous difference in achieving the success you want in your business as well as your personal life. Sign up for our newsletter to learn five key ways to make accountability work for you: [link]

Should You Get Cybercrime Insurance?

Mon, 27 Jun 2022 14:17:04 GMT

Download Volume 11, Issue 26 Document Here

BizBoost News
Volume 11, Issue 26
For distribution 6/13/22; publication 6/16/22

Should You Get Cybercrime Insurance?

The short answer to this question is YES! Incidents of cybercrime have been problematic for a long time, but have soared exponentially since the start of the pandemic. If the reputation of your firm depends in part on your maintaining confidential client records secure and private, then this insurance is a must. It’s not a matter of “if,” but “when” your private business info will be breached.

Finding the Right Insurance

The best place to start is your current insurance agent or a general insurance broker that you trust. Cybercrime policies are separate policies that cover specific acts, and you will need to read the policy carefully to see exactly what you are protected from. You should also distinguish between personal and business policies; you may want both.

In a business policy, some of the items you want to consider being protected against include:

Data breach
Ransomware attack
Spoofing and identity theft
Wire fraud
Civil fines
Lawsuits
Costs of notification, reputation repair, forensics and data restoration, credit monitoring, and other potential damages

A good policy will cover some or all of these costs:

Business interruption costs
Data breach costs
Extortion costs
Crisis management and public relations costs
Data recovery costs
Computer replacement costs
The cost of reputational harm

Just like any other insurance, you will need to complete an application to obtain a quote. Some of the standard questions include:

Type of products and services sold in the business
Type of electronic data stored on its computer systems
Whether laptops are password-protected
Whether you have written network security and privacy policies in place
Whether you have physical security procedures in place
Whether you have the most current software and processes to keep it upgraded
Whether you have backups
Whether you monitor unauthorized attempts to access systems
Whether you are in compliance with PCI DSS (Payment Card Industry Data Security Standard), HIPAA (Health Insurance Portability & Accountability Act), and GLBA (Gramm-Leach-Bliley Act)
Whether you have a written document retention and destruction plan in place
Whether you have encryption enabled
Whether third parties are involved in data handling
Whether you have a process to check copyrights of materials you use
Whether you have a risk management education program for employees
Your current insurance policies
Whether you’ve had a breach in recent years
Whether you’ve had any lawsuits or claims in this area
Whether you use a firewall
Whether you use anti-virus protection
Whether you have an employee/third party off-boarding process that terminates access to computers and data

As you can see, the application process itself is an excellent way to “cross your Ts and dot your Is” when it comes to putting safeguards in place for your business. And of course, your premium will be less expensive when you have these items in place. It goes without saying that your premium will be less expensive if you get insurance before you are attacked, so that you have a clean application.

A key part of owning a business is managing enterprise risk effectively, and a cybercrime policy will go a long way toward protecting your hard-earned investment and giving you peace of mind so you can sleep better at night.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Should You Get Cybercrime Insurance?” is available now! Subscribe here: [link]

Incidents of cybercrime have been problematic for a long time, but have soared exponentially since the start of the pandemic. Learn about the importance of cybercrime insurance in our latest blog article: [link]

If the reputation of your firm depends in part on your maintaining confidential client records secure and private, then cybercrime insurance is a must. It’s not a matter of “if,” but “when” your private business info will be breached. Learn more in our latest blog article: [link]

#BusinessTip: Cybercrime insurance is more important now than ever before. Cybercrime policies are separate policies that cover specific acts, and you will need to read the policy carefully to see exactly what you are protected from. You should also distinguish between personal and business policies; you may want both. Learn more here: [link]

In a cybercrime business insurance policy, some of the items you want to consider being protected against include:

•Data breach
•Ransomware attack
•Spoofing and identity theft
•Wire fraud
•Civil fines
•Lawsuits
Learn more about this type of insurance here: [link]

A key part of owning a business is managing enterprise risk effectively. Cybercrime insurance can go a long way toward protecting your hard-earned investment and giving you peace of mind. Learn more about cybercrime insurance here: [link]

DID YOU KNOW… A good cybercrime insurance policy will cover some or all of these costs:

•Business interruption costs
•Data breach costs
•Extortion costs
•Crisis management and public relations costs
•Data recovery costs
•Computer replacement costs
•The cost of reputational harm
Learn more in our latest blog article: [link]

Do you know whether your business needs a cybercrime insurance policy? Sign up for our newsletter to learn more: [link]

ESG and Small Businesses

Mon, 27 Jun 2022 13:38:06 GMT

Download Volume 11, Issue 25 Document Here

BizBoost News
Volume 11, Issue 25
For distribution 5/30/22; publication 6/2/22

ESG and Small Businesses

Pick up just about any public company’s most recent annual report, and you’ll find a section on ESG. ESG stands for Environment, Social, and Governance, and the trend of not only considering, but also measuring a company’s sustainability performance on ESG issues has become key. A new generation of investors is driving this movement as they become more discerning when selecting companies to invest in.

While ESG is still predominately a large company issue, small companies can benefit from being aware of this trend. But first, here is a very brief summary of the ESG components:

Environment

Measuring a business’s impact on the environment means taking into consideration topics such as climate change and sustainability. How many natural resources does the company use, and are they replenishing them as they use them? If they are polluting, how are they cleaning it up?

Social

The social impact of a business is the broadest of the three areas. It includes a multitude of topics, including:

Diversity and inclusion in the workforce and with suppliers
Consumer protection related to its products
Human rights, including workforce issues such as working conditions and minimum wage, especially overseas
Animal welfare in product research and development

Governance

The area of governance measures the leadership of the company when it comes to topics such as ethics, transparency, compensation issues for both executives and employees, and employee relations in general.

Accounting for ESG

The accounting industry is developing and adopting standards for how to measure a corporation’s sustainability performance. As of this writing, the IFRS (International Financial Reporting Standards) Foundation has proposed the creation of the Sustainability Standards Board, which will help to set standards for ESG in 140 countries.

This move will better align the current financial performance of the company with the new sustainability measures. However, all of this is many years off, as there are many organizations that have developed standards for numerous components of ESG that need to be consolidated and adopted.

In the meantime, we do know that positive sustainability performance by a company drives positive financial performance. There are many ways small businesses can participate in ESG’s benefits.

ESG and Small Business

ESG can have a positive impact on your company’s value, company culture, who you hire, the vendors you select, and the customers that select you.

As an example, if you plan to do business with a large company, mirroring their ESG values can help you align with them, giving you an edge in the selection process. Similarly, when you communicate your ESG values and contributions, you are more likely to attract employees with the same individual values, making for a better fit.

While there are a lot of things a small business can do, here are just a few ideas:

Disclose your starting hourly rate, if it’s well above your state’s minimum wage, to attract better quality hiring candidates.
When purchasing vehicles, consider electric or hybrid.
Match employee nonprofit contributions, and give them time off to volunteer.
Practice transparency when it comes to executive salaries or financial results.
Write and post a diversity and inclusion statement.
Conserve electricity by closing off unused spaces, turning off lights when not in use, and switch from gas to electric appliances when possible.
Optimize service routes to reduce fuel consumption.
Donate excess food to shelters (in the case of restaurants).
Protect customers’ private information with privacy processes and policies.
Make product components recyclable, purchase supplies that are recyclable, and train employees to recycle.

Add your own ideas to the above list.

Ask yourself how your business measures up when it comes to ESG, and make a plan to make the changes you want to see in your business.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “ESG and Small Businesses” is available now! Subscribe here: [link]

Pick up just about any public company’s most recent annual report, and you’ll find a section on ESG. ESG stands for Environment, Social, and Governance, and the trend of not only considering, but also measuring a company’s sustainability performance on ESG issues has become key. Learn more about the role of ESG in small businesses in our latest blog article: [link]

DID YOU KNOW… The social impact of a business is the broadest of the three ESG areas. It includes a multitude of topics, including:

•Diversity and inclusion in the workforce and with suppliers
•Consumer protection related to its products
•Human rights, including workforce issues such as working conditions and minimum wage, especially overseas
•Animal welfare in product research and development
Learn more about ESG in our latest blog article: [link]

#BusinessTip: Ask yourself how your business measures up when it comes to ESG (Environment, Social, and Governance), and make a plan to make the changes you want to see in your business. Learn more here: [link]

Do you know what ESG is? ESG stands for Environment, Social, and Governance, and the trend of not only considering, but also measuring a company’s sustainability performance on ESG issues has become key. A new generation of investors is driving this movement as they become more discerning when selecting companies to invest in. Find out more here: [link]

A few ways a small business can boost their ESG (Environment, Social, and Governance) are:

•When purchasing vehicles, consider electric or hybrid.
•Match employee nonprofit contributions, and give them time off to volunteer.
•Practice transparency when it comes to executive salaries or financial results.
•Write and post a diversity and inclusion statement.
•Donate excess food to shelters (in the case of restaurants).
Learn more about ESG in our latest blog article: [link]

While ESG (Environment, Social, and Governance) is still predominately a large company issue, small companies can benefit from being aware of this trend. Sign up for our newsletter to learn more: [link]

How a Loan Affects Your Financial Statements

Fri, 27 May 2022 11:54:43 GMT

Download Volume 11, Issue 24 Document Here

BizBoost News
Volume 11, Issue 24
For distribution 5/16/22; publication 5/19/22

How a Loan Affects Your Financial Statements

Getting your business loan can be an exciting step in the growth of your business. Recording your loan properly in your accounting system usually requires special handling by your accountant. Your loan statement will provide the information you need to get it booked properly.

You’ll need the following pieces of information about your loan:

Total amount borrowed
Date of loan
Date of first payment
Payment amount
Term of loan
Number of payments
Interest rate

The full amount of your loan should be recorded as a liability on your business’s balance sheet. Two liability accounts should be set up: one for short-term and one for long-term. The offset is either an increase to cash or the recording of new assets like a car, truck, or building.

Each payment you make consists of two parts: interest and principal. Interest is an expense and is recorded in an Interest Expense account. It will reduce your profit. Principal is the amount you pay toward paying off the loan. It reduces the liability account where the loan is recorded. It does not affect your profit, but it does improve your liquidity with each payment you make.

The interest and principal amounts are not the same for each payment. Early loan payments consist of higher interest and lower principal amounts. As you reach the end of paying off your loan, the interest portion is smaller and the principal becomes larger. An amortization schedule shows you the exact amount of interest and principal for each payment.

Each time you make a payment, cash is reduced for the entire amount of the payment. The offset is split between interest expense and your loan liability, using the amounts in the amortization schedule. When you code your loan payment, you can use the amortization schedule to get the correct amounts to both of those accounts.

In a simple service business with no assets except cash, your cash balance can mimic your profit level. When you introduce loans and new, non-cash assets with depreciation expense, that won’t be true anymore. You might wonder why you have no cash and more profits, or the opposite might be true. This is why it’s a good idea to understand how these transactions affect your Balance Sheet and Income Statement as well as your business’s overall financial health.

At year-end, your accountant can make correcting entries if needed between the loan balance and interest expense. They can also adjust the short-term and long-term liability accounts to reflect the correct balances for the upcoming year. The amount of principal reduction planned for less than one year goes into the short-term liability, and the rest goes into the long-term account.

If you failed to make payments or made them late, your accountant can make those allocations as well using manual journal entries.

Often, when you get a loan, you have also purchased some type of asset, such as a car or land and building. Those assets should be recorded on your books correctly as well. You should have some type of closing statement or purchase contract that has the details for your accountant. They will also compute and record the correct amount of depreciation for the asset type.

Your accountant can speak with you in more detail about your specific situation and can better explain the interplay between cash and profits if you are interested. Feel free to reach out to us anytime.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “How a Loan Affects Your Financial Statements” is available now! Subscribe here: [link]

Recording your business loan properly in your accounting system usually requires special handling by your accountant. You’ll need the following pieces of information about your loan:

Total amount borrowed
Date of loan
Date of first payment
Payment amount
Term of loan
Number of payments
Interest rate

Learn more in our latest blog article: [link]

DID YOU KNOW… If you fail to make payments on a business loan, your accountant can make those allocations on your books using manual journal entries. Learn more about how loans affect your financial statements in our latest blog article: [link]

#BusinessTip: Often, when you get a loan, you have also purchased some type of asset, such as a car or land and building. Those assets should be recorded on your books correctly. You should have some type of closing statement or purchase contract that has the details for your accountant. They will also compute and record the correct amount of depreciation for the asset type. Learn more here: [link]

When you get a business loan, the full amount of your loan should be recorded as a liability on your business’s balance sheet. Two liability accounts should be set up: one for short-term and one for long-term. The offset is either an increase to cash or the recording of new assets like a car, truck, or building. Learn more here: [link]

DID YOU KNOW… Each payment you make to a business loan consists of two parts: interest and principal. Interest is an expense and is recorded in an Interest Expense account. Principal is the amount you pay toward paying off the loan. Find out more here: [link]

Getting a business loan can be an exciting step in the growth of your business. However, recording your loan properly in your accounting system usually requires special handling by your accountant. Learn more in our latest blog article: [link]

Do you know how getting a loan can affect your financial statements? We explain how to properly record a business loan in your accounting system and how it may affect your statements in our latest blog article. Sign up for our newsletter to learn more: [link]

How to Write a Refund Policy

Fri, 27 May 2022 11:53:39 GMT

Download Volume 11, Issue 23 Document Here

BizBoost News
Volume 11, Issue 23
For distribution 5/2/22; publication 5/5/22

How to Write a Refund Policy

A refund policy defines the processes and rules for when customers want their money back and want to return the products or services they purchased from you. It’s often required by your credit card or shopping cart company as part of maintaining PCI (Payment Card Industry) compliance. Plus, it’s just a good, fair business practice to post one.

As a business owner, you can set your own refund rules. The important thing is that they are communicated clearly to the customer in advance of their purchase.

A good refund policy answers the questions that customers have when the item they purchased from you does not work out. It reduces conflict and ambiguity, and improves customer service. It also helps your employees work with customers’ expectations, by allowing them to refer to the posted policy that a customer can see with their own eyes.

Here are some of the components you’ll want to address in your refund policy:

Items to be returned: Which items can be returned and which can’t? Some products, after opening, like food, simply can’t be returned safely. You might still honor a refund of money even if the item can’t be returned or re-sold.

Condition of items: You may want to stipulate for some returned items that they are in a condition to be re-sold. That means the customer may need to return packaging as well as the item in order to qualify for a refund.

Time limit: How long from the date of purchase do customers have to return the item and ask for a refund? Common time limits range from 7 to 30 days.

Shipping: If shipping cost is involved, who will pay it?

Processing time: How long will it take to receive a refund once the item is returned?

Money: How will the money be returned? Will it be on the credit card used? What if it is cash or a check? Or will you give store credit only?

Requirements: Will customers need to fill out a form, request refund approval, or use a specific shipping return label? What instructions do you need to provide them for proper return requests and processing?

Fees: Will there be a re-stocking fee, cancellation fee, return processing fee, or any other fee that reduces the amount of the refund?

The first step is to decide the answers to all of the above questions. You might be tempted to have a “no returns, no refunds” policy, and this could be the right thing in many cases. However, the refund policy is a chance to build trust with the customer, and a rigid one could cause lost sales. Often a “no questions asked” refund policy can increase sales in the long term. Only a very tiny percentage of people will take advantage of it.

Once you have determined the answers to your refund policy, you can write up the policy. Post it on your website and near your cash register or checkout areas of your store.

Next, make sure you have a smooth process in place for handling returns on a timely basis. Most stores have a separate checkout area or customer service desk to process returns so that they don’t slow down the regular check-out lines. Employees should be trained on how to talk with the customers, how to accept the returned items back into inventory for resale or return back to the vendor, and how to use the cash register or shopping cart system to process the returns.

You can even turn returns into a positive experience for everyone. If an item is the wrong size, it may be able to be converted into an exchange for a different size so the sale is not lost. A great sales person can also provide upsell opportunities for new or similar items to the returned item. Proactively, your store can sell warranties at the time of purchase for selected items.

The more customers you have, the more chances there are of having a customer who asks for a refund. Be prepared with a clear, fair, well-documented refund policy.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “How to Write a Refund Policy” is available now! Subscribe here: [link]

Do you have a written refund policy for your business? A refund policy defines the processes and rules for when customers want their money back and want to return the products or services they purchased from you. Learn more in our latest blog article: [link]

Do you know what components to address in your company refund policy? We list the top components to include in our latest blog article: [link]

#Tip: The more customers you have, the more chances there are of having a customer who asks for a refund. Be prepared with a clear, fair, well-documented refund policy. Learn more here: [link]

DID YOU KNOW… You can turn product returns into a positive experience. If an item is the wrong size, it may be able to be converted into an exchange for a different size so the sale is not lost. A great sales person can also provide upsell opportunities for new or similar items to the returned item. Learn more here: [link]

#BusinessTip: Make sure you have a smooth process in place for handling returns on a timely basis. Most stores have a separate checkout area or customer service desk to process returns so that they don’t slow down the regular check-out lines. Employees should be trained on how to talk with the customers, how to accept the returned items back into inventory for resale or return back to the vendor, and how to use the cash register or shopping cart system to process the returns. Find out more here: [link]

A good company refund policy answers the questions that customers have when the item they purchased from you does not work out. It reduces conflict and ambiguity, and improves customer service. It also helps your employees work with customers’ expectations, by allowing them to refer to the posted policy that a customer can see with their own eyes. Learn more in our latest blog article: [link]

A refund policy is important for every business, no matter what size you are. We explain the key components of a refund policy as well as steps to take to implement the policy in our latest blog article. Sign up for our newsletter to learn more: [link]

How to Keep Your Customers Coming Back

Wed, 27 Apr 2022 11:19:10 GMT

Download Volume 11, Issue 22 Document Here

BizBoost News
Volume 11, Issue 22
For distribution 4/18/22; publication 4/21/22

How to Keep Your Customers Coming Back

Measuring and encouraging customer retention is important for businesses in many industries. There are a couple of great measures to see how you are doing in this area. We’ll explain those and provide some tactical tips in this article.

Measuring Customer Retention

The most common metric to measure customer retention is the customer retention ratio. The best report to run to gather the data for this is a Revenue by Customer Summary Report. Each customer should be listed in a row of your spreadsheet, and each year’s revenue for that customer should be listed in the columns.

From this report, you can get the following numbers. Let’s use 2020-2021 as our measurement period.

A = How many customers you had with sales in 2020
B = How many customers you had with sales in both 2020 and 2021

The formula is B / A, which will give you the retention ratio. The formula A – B will give you a count of how many repeat customers you lost.

C = How many customers you had with sales in 2021, but not 2020

Answer C will tell you how many new customers you gained in 2021. This doesn’t inform customer retention metrics, but it does help to know how many lost customers you replaced.

Now dollarize your figures.

D = 2020 total sales of customers you had with sales in both 2020 and 2021
E = 2021 total sales of customers you had with sales in both 2020 and 2021

The formula E / D measures the percentage increase or decrease in sales of your repeat customers, so that you can see as a trend whether they are buying more or less from you. A lot of factors go into being able to influence this number, including upsell and cross-sell opportunities over time, sales communications, your business model, and products offered to repeat customers.

One final measure is customer lifetime value, which is easy to pull. Run your Sales by Customer Summary Report for all of the years that you have in your accounting system, then sort by highest revenue. Your most valuable customer over the years included will be listed at the top of the report.

Want to compare how you’re doing with other businesses? Industry-standard value ranges for each of these metrics vary greatly and are beyond the scope of this article. However, your best competitor is yourself, and learning how you can improve your own results year after year can be time very well spent.

Encouraging Customer Retention

No matter what industry you’re in, the best thing you can do to improve customer retention is to maintain an email list of customers, so that you can communicate with them on an ongoing basis. Letting them know when you have sales, new products and services, and even new staff members can go a long way toward building long-term relationships.

Other ways to promote customer retention include:

Your business model – a VIP membership or subscription model with perks and special access and bonuses can work for numerous businesses to maintain customers
Rewards programs
Special events
·Special gifts
Thank you notes
Special discounts or exclusive offers
Social media presence, especially groups and active engagement where questions are encouraged and answered

Anything to make your customers feel special will work to increase retention. Think about what you can do to increase customer retention, and make a plan to execute your ideas. If you’d like to find out more about calculating these metrics, please reach out.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “How to Keep Your Customers Coming Back” is available now! Subscribe here: [link]

Measuring and encouraging customer retention is important for businesses in many industries. There are a couple of great measures to see how you are doing in this area. We explain those and provide some tactical tips in our latest blog article: [link]

Do you know how to measure customer retention in your business? We break down exactly how to do this in our latest blog article: [link]

#BusinessTip: The most common metric to measure customer retention is the customer retention ratio. The best report to run to gather the data for this is a Revenue by Customer Summary Report. Each customer should be listed in a row of your spreadsheet, and each year’s revenue for that customer should be listed in the columns. Learn more here: [link]

Ways to promote customer retention in your business include:
•Rewards programs
•Special events
•Special gifts
•Thank you notes
•Special discounts or exclusive offers
•Social media presence, especially groups and active engagement

Learn more here: [link]

Do you know how to measure and encourage customer retention in your business? Learn the most common metrics to use as well as numerous ways to grow customer retention in our latest blog article: [link]

Our latest blog article discusses the importance of evaluating customer retention rates in your business, as well as how you can improve your systems to encourage a higher rate of retention. Sign up for our newsletter to learn more: [link]

Why Are You in Business? Crafting Your Mission, Vision, and Values Statements

Wed, 27 Apr 2022 11:16:13 GMT

Download Volume 11, Issue 21 Document Here

BizBoost News
Volume 11, Issue 21
For distribution 4/4/22; publication 4/7/22

Why Are You in Business? Crafting Your Mission, Vision, and Values Statements

Most large businesses have developed mission, vision, and values statements to help guide them and inform stakeholders about the company’s strategic direction. Going through this strategic exercise is a wonderful idea for even the smallest business as well.

A company’s mission statement lists its core purpose and desired impact for employees, customers, owners, and other stakeholders. A vision statement defines what the company wants to be. A values statement describes what the company stands for.

It’s a perfect activity for business owners to answer and remember why they built the business in the first place. It also serves to correct and re-align the trajectory of the business.

Mission Statement

Start by asking what impact you want your business to have on the outside world. Here are some mission statement examples that are frequently quoted:

Harley-Davidson: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul.

Disney: The mission of The Walt Disney Company is to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company.

Nike: Nike exists to bring inspiration and innovation to every athlete* in the world. Our purpose is to move the world forward through the power of sport – breaking barriers and building community to change the game for all. *If you have a body, you are an athlete.

Notice how each one is short and simple to understand. They focus more on the big-picture benefits they bring to customers and less on how they will get there.

To write your own mission statement, ask yourself what your business’s purpose is and how you will impact your customers’ lives with your products and services.

Vision Statement

A vision statement is big, bold, and futuristic. What do you want your company to be?

Here are a few examples:

Harley-Davidson: Building our legend and leading our industry through innovation, evolution, and emotion

Deloitte: We aspire to be the Standard of Excellence, the first choice of the most sought-after clients and talent.

Amazon: Amazon strives to be Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work.

What do you want your company to become? That’s your vision statement.

Values Statements

Values statements are typically a set of adjectives or statements that answer what the company stands for. They can be in the form of leadership principles, core values, or a similar format. These days, they often include values on environmental, social, climate, global, human rights, diversity and inclusion, sustainability, and many other current issues. They can take the form of additional strategic statements on each one of these issues.

Sample values statements can be found in the company’s annual report as well as the About or Company section of their website.

Here are some examples:

Harley-Davidson Principles:

Communication - Communicate with purpose, structure, facts and inspiration
Agility - Accelerate, innovate and thrive in a rapidly changing environment
Impact - Focus on impact, not process, and be outcome driven
Simplicity - Pursue the simplest path to achieve each outcome
Speed - Don’t let perfection get in the way of process and pace
Culture - Be fair, honest, positive and creative. Strive to win and have fun.
Courage -Take risks and go against the norm
Judgment -Think strategically and make informed decisions
Focus - Focus on a short list of meaningful opportunities that build desirability
Lean - Maximize impact with limited resources

Coca-Cola Behaviors We Focus on:
Curious
Empowered
Inclusive
Agile

Merck Values:
Patients first
Respect for people
Ethics and integrity
Innovation and scientific excellence

Your mission, vision, and values statements will help you communicate the qualities of your business. It can help in hiring to see if a candidate’s individual values align with the core corporate values, and with customer acquisition when prospects see what your company is about. It can also help you remember your roots and why you work so hard every day.

We’d love to hear from you when you write up your mission, vision, and values statements.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Why Are You in Business? Crafting Your Mission, Vision, and Values Statements” is available now! Subscribe here: [link]

Crafting your mission, vision, and values statements is a perfect activity for business owners to remember why they built the business in the first place. It also serves to correct and re-align the trajectory of the business. Learn more in our latest blog article: [link]

Do you know the difference between a mission, vision, and values statement? We discuss the differences and the importance of crafting all three statements for your business in our latest blog article: [link]

#BusinessTip: To write a mission statement for your business, ask yourself what your business’s purpose is and how you will impact your customers’ lives with your products and services. Find examples of mission statements and more guidance on how to write your own here: [link]

Mission, vision, and values statements can help you communicate the qualities of your business. Do you know how to write these statements? Learn how to create these statements and find examples of each here: [link]

Does your company have a vision statement? A vision statement is big, bold, and futuristic, and explains what you want your company to be. Learn more in our latest blog article: [link]

Mission, vision, and values statements are essential to help communicate the purpose of your business and help you remember why you work so hard every day. Sign up for our newsletter to learn more about these statements and how to craft them for your business: [link]

Online Payment Systems: They Are Not All the Same

Fri, 25 Mar 2022 11:25:51 GMT

Download Volume 11, Issue 20 Document Here

BizBoost News
Volume 11, Issue 20
For distribution 3/21/22; publication 3/24/22

Online Payment Systems: They Are Not All the Same

Collecting money from customers is a key function in any business, and the more automated this process is, the better. The payment function varies by type of business, but more and more, there are online options available for collecting money over the internet. Here are few tips on what that looks like.

Your Website

The perfect place to collect money from a customer is your website. Or is it? Actually, it’s not, but wait, let me explain first.

A typical website is not as secure as it needs to be to collect credit card information from customers. You almost always need an additional app for that. But what you can do on the website is add a link (usually behind a button) or an entire webpage (a sales or product page) to your site that seamlessly takes the customer to a secure site – a shopping cart with a payment gateway -- to enter credit card details.

So, the only way your website gets involved is that it has the link or button that provides the bridge to the payment site.

The Payment App

The payment system needs to handle three functions:

1.      A shopping cart task, where the item is priced and added to a basket.
2.      A checkout page, where billing information and credit card information is collected.
3.      A behind-the-scenes settlement function, where the money is taken from the customer, held in a merchant account, and then sent to your business.

In the first step, you need shopping cart software to handle the function. Common retail solutions include Shopify, WooCommerce, and Magento, to name a few. But these don’t, by themselves, get you paid. They just process the transaction in a secure environment.

The second step requires a payment gateway application. The most common stand-alone gateway is Authorize.net, and you typically would connect this to your shopping cart. The third step is handled by your merchant account, and sometimes, a separate processor is involved too. From your merchant account, which is connected to your gateway, you typically get a reconciliation of the daily settlements that hit your bank account. You would also handle customer complaints and disputes with them.

In recent years, the second and third steps have often been combined into the same vendor. Companies like PayPal, Stripe, and Square act as the gateway, the processor and the merchant account, all in one, which is really nice, and so much more streamlined than a decade earlier.

Some vendors go a step further and combine all three functions into one vendor. PayPal is the quintessential example. Together, WooCommerce and WooCommerce Payments team up to provide an all-in-one solution.

Getting Paid in Service Businesses

A shopping cart is standard for online retail businesses, but what about service businesses? Service businesses that package their services and charge in advance can use a shopping cart just like retail.

If the service business bills their customers after the fact, then the payment setup is connected to invoice distribution instead of a shopping cart. In this case, you would need to find out which solutions work with your specific billing system, or if there is an add-on you can use to extend your billing system’s capabilities. For example, QuickBooks users can sign up for QuickBooks payments, and Xero users can use Stripe.

When the invoice is sent to the customer, it will include a payment link the customer can use to pay. These service business payment solutions are fairly industry-specific; for example, you might have noticed medical and dental offices use different solutions than personal care service businesses.

Different Choices

When you are selecting a payment system for your business, some people simply look at the credit card fees to make a decision. While that’s important, don’t stop there. Here are some final tips on what to look for and look out for:

1.      Understand exactly what each apps’ capabilities are so that you have all of the pieces of the process fully covered.
2.      Applying for a merchant account is just like applying for a loan, but the process has been extremely streamlined in the last decade or so.
3.      Make sure you can get the reports you need, including settlement details, refunds (full and partial) and void processing, failed payments and retries, and dispute resolution, to name a few.
4.      Put business processes in place to deal with all of the items mentioned above.
5.      Make sure the app can handle the type of billing you need to do, including cart items, recurring payments, after-the-fact invoicing, sales tax, and shipping parameters.
6.      Find out how long it is between collection and bank deposit; this can range from 1-6 days.
7.      Watch for a high failure rate on customer transactions. If this is the case, it could be that the gateway and merchant account are rejecting perfectly good business because the merchant account’s acceptance rules are extremely strict. This can happen with merchant accounts tied directly to banks, and the best thing to do is avoid them and look for a different option.
8.      Expect any new provider to hold the first few days of transactions for longer than normal. This is a temporary safety measure and should clear up quickly.

Adding an online payment system is smart business and can save a ton of accounting time. Just make sure to choose the best payment system for your specific needs.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Online Payment Systems: They Are Not All the Same”is available now! Subscribe here: [link]

The payment system for your business needs to handle three functions:

1. A shopping cart task

2. A checkout page

3. A behind-the-scenes settlement function

Learn more in our latest blog article: [link]

Learn what payment system options are out there, as well as the best choice for your business, in our latest blog article. Get instant access here: [link]

DID YOU KNOW… Your website is not actually the perfect place to collect money from a customer. A typical website is not as secure as it needs to be to collect credit card information from customers. Learn more here: [link]

Do you know what you look for when you are selecting a payment system for your business? Some people simply look at the credit card fees to make a decision. While that’s important, don’t stop there. We’ve compiled a list of things to look for and look out for in our latest blog article: [link]

DID YOU KNOW… A shopping cart is standard for online retail businesses, but service businesses that package their services and charge in advance can use a shopping cart as well. Learn more in our latest blog article: [link]

Adding an online payment system is smart business and can save a ton of accounting time. Just make sure to choose the best payment system for your specific needs. Sign up for our newsletter to learn more: [link]

5 Ways to Rejuvenate, Refresh, and Revive Your Entrepreneurial Passion

Fri, 25 Mar 2022 11:24:56 GMT

Download Volume 11, Issue 19 Document Here

BizBoost News
Volume 11, Issue 19
For distribution 3/7/22; publication 3/10/22

5 Ways to Rejuvenate, Refresh, and Revive Your Entrepreneurial Passion

Most entrepreneurs would agree that owning a business is an incredible privilege, and they would likely never want to go back to working for someone else. However, we all have our days! And sometimes those rough days can turn into weeks. If we’ve temporarily lost a little bit of our entrepreneurial passion, how can we get that back? Here are some tips.

Customer Reviews

Reading reviews left by customers about your business can help you see things from your customers’ eyes. If the reviews are positive, they can help you see the impact your business has made on them which can boost your motivation. If the reviews are glowing, then this task alone can fuel your rejuvenation. After all, you have a lot more people you can make a difference with!

If you don’t have reviews, ask for them. The first time you do this, it can be an amazing experience.

Personal Self-Care

Make sure to allocate enough time for personal care. No one can work 24/7 and survive without burning out. Try soothing activities like yoga, meditation, or a spa day if you just need some tranquility. Make it a regular habit, and you’ll be better balanced when you go to work.

Goal Reset

If you’ve been skirting by the last few years on incremental or unchallenging goals, it might be time to give yourself a BHAG – big hairy audacious goal – as mentioned in the book Built to Last. This is an ambitious, long-term goal that can help to propel the entire company into a mission to reach it.

If you feel your employees could use some rejuvenation as well, schedule a goal-setting retreat for the entire company. Everyone will come back with renewed energy and a new purpose.

Education

The thing about being an entrepreneur is you never stop learning. New skills are required every time you reach a new level in your business. Changes in technology, science, and government compliance trickle down to small businesses, requiring changes to your business processes on a constant basis.

Take a new class or read a book to learn something that will improve your business. You’ll be full of ideas that you can implement to make your business better.

Delegation

We all have tasks in our businesses that we love to do and tasks that we do not love to do. If you’re doing too many of the “don’t love” tasks and not enough of the “love this task,” this can take a toll on your attitude. If you have staff, delegate the things you don’t love – and find staff that really love to do them. That way, you can focus more on the good stuff for yourself.

New Project

Is there a project that you’d love to do but has been on the back burner forever? Making it a priority may just be the reset button you need. Sometimes things that are urgent get done while things that are important but not urgent have to wait. Change the priority of those projects that are important and you will feel lighter.

Vacation

Last but not least, maybe you just need to get away for a while, then come back with a new perspective. For that, a good old-fashioned vacation, complete with air fares and hotel rooms, is the ticket.

If you’ve been working hard lately and it’s been grinding you down, try one of these tips to relax, refresh, and rejuvenate your passion for your business.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “5 Ways to Rejuvenate, Refresh, and Revive Your Entrepreneurial Passion” is available now! Subscribe here: [link]

Most entrepreneurs would agree that owning a business is an incredible privilege, and they would likely never want to go back to working for someone else. However, we all have our days! Click here to learn how to revive your entrepreneurial passion in our latest blog article: [link]

Learn 5 ways to rejuvenate, refresh, and revive your entrepreneurial passion in our latest blog article. Get instant access here: [link]

DID YOU KNOW…personal self-care, goal resetting, and taking a vacation are just a few things you can do to rejuvenate and refresh your passion for your business. Learn more here: [link]

Personal self-care is just as important as anything else when it comes to your business. No one can work 24/7 and survive without burning out. Learn more here: [link]

DID YOU KNOW… If you’ve been skirting by the last few years on incremental or unchallenging goals, it might be time to give yourself a BHAG – big hairy audacious goal – as mentioned in the book Built to Last. This is an ambitious, long-term goal that can help to propel the entire company into a mission to reach it. Find out more here: [link]

Do you feel burnt out in your business? Is there a project that you’d love to do but has been on the back burner forever? Making it a priority may just be the reset button you need. Learn more in our latest blog article: [link]

If you’ve temporarily lost a little bit of your entrepreneurial passion, how can you get that back? Sign up for our newsletter for a list of ways to ignite your passion again: [link]

Test Your Financial Resilience

Thu, 24 Feb 2022 15:19:19 GMT

Download Volume 11, Issue 18 Document Here

BizBoost News
Volume 11, Issue 18
For distribution 2/21/22; publication 2/24/22

Test Your Financial Resilience

There’s more to being financially resilient than simply saving enough money for a rainy day. A part of being financially responsible is maintaining good financial records – and making sure people who need access to your records know where to find them if something happens to you. Here are some ideas for your consideration.

Communicating your goals

Too many families spend little to no time talking about money, and this habit lowers the financial literacy of everyone in the household. Do you know what goals each of your family members have around money?

Talking about money – more than what bill is due when – will strengthen everyone’s financial resilience in your family. You may want to set family goals as well as encourage everyone to set individual financial goals. This may or may not include preparing a budget and agreeing on plans, including a savings plan, a debt reduction plan, and others.

Systems and lists

Do you use an accounting system to store your financial records? Or do you have Excel worksheets? Is it clear where they are located on your computer? Do your loved ones know how to find these items if something happens to you?

Now that so many things are digitized, it’s not as easy as it has been in the past. You can’t just label a filing cabinet drawer and say “everything is in here that you need.” Your financial records might be in a hundred different places on your computer. Being organized and planning for a smooth financial future for your loved ones means making a list of instructions on how to access all of your financially-related digital assets.

Your list might include:

1.      URL, login, and password to your accounting systems.
2.      List of bank, brokerage, and retirement accounts and their login information.
3.      List of credit card accounts and their login information.
4.      List of government-related accounts, such as social security and irs.gov, and their login information.
5.      List of regular monthly bills, such as utility, credit cards, and rent, and their login information.
6.      Details of regular monthly income received.
7.      Where to find financial files on your computer, such as tax returns, bank statements, and real estate closing documents, just to mention a few, and how to access them.

And that’s just a start. You may not want to share your passwords with certain family members. If this is the case, you can still record your instructions and store them away for safekeeping, providing access information later.

Backups

If your computer crashes, will you be able to recover your financial files? Taking periodic backups will prevent a loss of records.

What to keep in case of an audit

You hope it will never happen, but if it does, are you prepared for an audit with the IRS or a state agency? Do you know what records to keep and for how many years?

Financial confidence

Having good documentation, sharing financial knowledge and goals, and making a backup plan will boost your financial confidence. You will be more prepared than most households when it comes to financial safety.

How financially resilient do you feel? Taking into consideration the above ideas will help you stay one step ahead.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Test Your Financial Resilience” is available now! Subscribe here: [link]

There’s more to being financially resilient than simply saving enough money for a rainy day. Learn how to test your financial resilience in our latest blog article: [link]

A part of being financially responsible is maintaining good financial records – and making sure people who need access to your records know where to find them if something happens to you. Learn more here: [link]

Do you discuss your financial goals with your family? Talking about money – more than what bill is due when – will strengthen everyone’s financial resilience in your family. This may or may not include preparing a budget and agreeing on plans, including a savings plan, a debt reduction plan, and others. Learn more here: [link]

DID YOU KNOW… Having good documentation, sharing financial knowledge and goals, and making a backup plan will boost your financial confidence. You will be more prepared than most households when it comes to financial safety. Learn more in our latest blog article: [link]

How financially resilient do you feel? We’ve created a list of things to consider when testing your financial resilience. Find out more here: [link]

Now that so many things are digitized, it’s not as easy as it has been in the past to keep your financial records organized. Your financial records might be in a hundred different places on your computer. Being organized and planning for a smooth financial future for your loved ones means making a list of instructions on how to access all of your financially-related digital assets. Find out what your list should include here: [link]

There are many factors that go into being financially resilient. Learn what steps you can take to become more resilient by signing up for our newsletter: [link]

Protecting Yourself from Supply Chain Shortages

Thu, 24 Feb 2022 15:18:32 GMT

Download Volume 11, Issue 17 Document Here

BizBoost News
Volume 11, Issue 17
For distribution 2/7/22; publication 2/10/22

Protecting Yourself from Supply Chain Shortages

The past few years have seen major kinks in the supply chain due to a number of reasons: aberrant buyer behavior, source material scarcity, government shutdowns, and worker shortages, to name a few. What can a business owner do to protect their businesses from shortages and therefore, revenue loss? Let’s take a look at a few ideas.

Source New Suppliers

Being dependent on only one supplier for a key item is risky. Increase your options by finding new suppliers to use as backups or alternates whenever you can. While it’s admirable to buy local, it’s not always possible. Expanding your network will provide you with a lot more flexibility, even if you have to pay a bit extra at times.

Understand Your Timeline

How accurate is your prediction of lead time? Are you providing enough time from ordering and delivery before you need the part in house? Timelines have changed a lot in the last year. Spend some time reviewing and recalculating lead time if you need to.

Fine-Tune Forecasting

Get good at forecasting so that you can anticipate and prevent inventory shortages before they occur. We can help you set up the correct spreadsheets and generate the right reports so you’ll have better information for decision-making in this area of your business.

Develop Relationships

The more dependent your business is on a particular supplier, the more you want to develop that relationship. Adding that personal touch might not help you get your orders faster, but when troubleshooting is needed, you’ll want the extra help a personal relationship can provide.

Increase Communication and Collaboration

Increase communication with your suppliers so they can manage their own timelines and supply chains better. Provide them with accurate forecasts and let them know how they can better meet your needs in the present and in the future.

Audit Inventory Records Frequently

If your inventory balances are only adjusted once a year, inaccurate inventory numbers are likely to cause problems. Find ways to take inventory more often, or at least increase the accuracy of inventory balances. The savings will be worth it; you’ll have fewer surprise out-of-stock or back-order situations that can cost not only sales but also customer loyalty.

Proactively Manage Shipping

There may be times when paying rush charges on shipping is justified simply to get the parts in house. Actively managing shipping and in-transit items will help you keep a handle on this. When possible, line up alternate shipping methods in case one method becomes unreliable. This is especially advised with overseas shipments where more can go wrong.

Create a Supply Chain Task Force

If supply chain issues are critical in your business and have been costing you profits, it might be time to create a dedicated team to manage and prevent crises. Consider putting together a group of employees that can be responsible for strengthening your supply chain.

Try these ideas to smooth out supply chain woes in your business.

***

Tweets

Insert a link to your newsletter, website or blog before you post these:

Our latest blog: “Protecting Yourself from Supply Chain Shortages” is available now! Subscribe here: [link]

Do you know how to protect yourself from supply chain shortages? Learn what steps you can take in our latest blog article: [link]

#Tip: Being dependent on only one supplier for your business is risky. Increase your options by finding new suppliers to use as backups or alternates whenever you can. While it’s admirable to buy local, it’s not always possible. Expanding your network will provide you with a lot more flexibility, even if you have to pay a bit extra at times. Learn more here: [link]

To avoid shipping delays in your business, try actively managing shipping and in-transit items to help you keep a handle on this. When possible, line up alternate shipping methods in case one method becomes unreliable. This is especially advised with overseas shipments where more can go wrong. Learn more here: [link]

Are you struggling with supply chain shortages? If supply chain issues are critical in your business and have been costing you profits, it might be time to create a dedicated team to manage and prevent crises. Consider putting together a group of employees that can be responsible for strengthening your supply chain. Find out more here: [link]

We’ve compiled a list of ideas to help you smooth out supply chain woes in your business.

Learn more in our latest blog article: [link]

There are numerous steps you can take to protect your business from the affects of supply chain shortages. Sign up for our newsletter to learn more: [link]

How Variance Reporting Can Keep Your Profits on Track

Thu, 27 Jan 2022 13:14:22 GMT

Download Volume 11, Issue 16 Document Here

BizBoost News
Volume 11, Issue 16
For distribution 1/24/22; publication 1/27/22

How Variance Reporting Can Keep Your Profits on Track

While there are literally hundreds of accounting reports that can help you run your business better, one of the most popular – and greatly underutilized – reports is the variance report. A variance report helps you compare how you are actually doing with either a past or expected performance. It makes it crystal clear how far you’re straying from where you want to be so that you can make course corrections earlier rather than later.

Variance to Prior Periods

A common variance report that almost anyone can generate is one that compares current period results to prior period results. For example, you can generate an income statement with six columns:

A.    Current month activity, such as March 1 to March 31, 2022
B.    Prior year month activity, such as March 1 to March 31, 2021
C.    Month difference or variance (A – B)
D.    Year-to-date activity, such as January 1 to March 31, 2022
E.     Prior-year-to-date activity, such as January 1 to March 31, 2021
F.     Year-to-date difference or variance (D – E)

The variance allows you to see, at a glance, whether your sales or expenses have increased compared to last year. Seeing monthly variances is especially important if the business experiences seasonal fluctuations.

You can go one step further to explain the variances in an accounting process called account analysis. Take a look at the components of each number to see what caused the variance. Write your explanation in a notes section of your variance report.

You may not want to spend management time on the small variances. A good financial dashboard, or simply an Excel spreadsheet, can help you color-code the balances that are more than 10 percent (or any percent you feel is material) off track.

Variance to Plan or Budget

You can also develop a variance report that compares current period results to budget. Here, you would generate an income statement with these six columns:

A.    Current month actual activity, such as March 1 to March 31, 2022
B.    Budget for the same period above
C.    Month difference or variance or (over)/under (B – A)
D.    Year-to-date actual activity, such as January 1 to March 31, 2022
E.     Year-to-date budget, such as January 1 to March 31, 2021
F.     Year-to-date difference or variance or (over)/under (E – D)

Do the same thing above, color-coding and explaining the variances using account analysis. How did your budget details differ from what actually happened? If it’s better, can you do more? If it’s worse, how can you get back on track? Performing a timely variance analysis helps you find opportunities to exploit so you can make more money or investigate ways to get back on track faster so you don’t lose as much.

Of course, with budget versus actual variance reports, you do have to create the budget first!

If you’re not already receiving variance reports, would like help creating a budget, or would simply like to set up a session to better understand variances, please feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “How Variance Reporting Can Keep Your Profits on Track”is available now! Subscribe here: [link]

While there are hundreds of accounting reports that can help you run your business better, one of the most popular – and greatly underutilized – reports is the variance report. Click here to find out how the variance report can keep your profits on track in our latest blog article: [link]

Our latest blog article reviews how variance reporting can keep your profits on track. Get instant access here: [link]

DID YOU KNOW… A variance report helps you compare how you are actually doing with either a past or expected performance. It makes it crystal clear how far you’re straying from where you want to be so that you can make course corrections earlier rather than later. Learn more here: [link]

A common variance report that almost anyone can generate is one that compares current period results to prior period results. The variance allows you to see, at a glance, whether your sales or expenses have increased compared to last year. Seeing monthly variances is especially important if the business experiences seasonal fluctuations. Learn more here: [link]

DID YOU KNOW… By performing a variance report against your budget, you can find opportunities to exploit so you can make more money, or investigate ways to get back on track faster so you don’t lose as much. Find out more here: [link]

What do you use to keep your business on track? Try utilizing the variance report! It makes it crystal clear how far you’re straying from where you want to be, so that you can make course corrections earlier rather than later. Learn more in our latest blog article: [link]

Are you using variance reports in your business? If you’re not already receiving variance reports, would like help creating a budget, or would simply like to better understand variances, sign up for our newsletter to learn more: [link]

Five Ideas to Attract Staff During the Great Resignation

Thu, 27 Jan 2022 13:11:38 GMT

Download Volume 11, Issue 15 Document Here

BizBoost News
Volume 11, Issue 15
For distribution 1/10/22; publication 1/13/22

Five Ideas to Attract Staff During the Great Resignation

You’re not alone if you’re having trouble attracting and keeping staff. A convergence of issues has created one of the greatest talent shortages in our lifetimes. With boomers retiring in large numbers, pandemic and opioid deaths, people not wanting to work for low wages, child care availability disappearing, tighter immigration policies, people rethinking their life choices, and so many other factors, it’s no wonder small businesses are having trouble finding workers.

The good news is small business owners still have a lot in their control to be able to attract the perfect candidate to our workplaces. Here are some ideas to help you do just that.

1. Be open to multiple options when it comes to what an employee looks like

If you require a 40-hours-a-week, onsite worker who has to dress in formal clothes to come to work, you need to rethink everything. Many talented people are choosing to work part time, and it might just be easier to find two part-time workers instead of one full-time employee.

How much of the job can they do virtually? This opens up your hiring pool nationally and perhaps even internationally. Consider also temporary versus permanent. And consider outsourcing certain functions as well.

The key is to be open to creative ways to get the job done.

2. Make fun a vital part of your workplace

Even if there are numerous deadlines and serious work to be done, your workplace can still be fun. A good start is bringing food to work; camaraderie always blossoms around food.

Add in extra activities like movie or games night, take weekly team lunches, start an amateur sports team, or encourage co-worker get-togethers after work. Decorate the office for each holiday, and celebrate birthdays, anniversaries, and employee successes. Create fun projects such as a volunteer day for a local charity, or support a team entry at a local fun run.

In short, create a culture where employees can not only have fun, but be themselves.

3. Add perks, and not just the usual suspects

Employees are demanding more of their employers, and the best businesses are listening and delivering. Beyond increased pay and the usual benefits – 401K, health insurance, vacation, and PTO – here are some new additions:

Flex hours – more say in when they work
Work-at-home days – more people are working at home at least part of the time
Pet insurance – a New England CPA firm offers this to workers now
Extra PTO – one marketing agency in Texas provides unlimited PTO, no questions asked
Child care – any way to make this easy on parents is a plus

Other perks to think about are holiday gifts, bonuses, free dry cleaning, free car washes, and employee discounts.

4. Embrace technology

Employees want the best tools you can give them so they can do a good job. Be sure your employees are fitted with the latest hardware and software so there is less stress around the inevitable tech glitches that occur. There’s nothing worse than having a deadline and coming across a software glitch that wastes precious time.

5. Apply marketing techniques to hiring

Instead of posting the old boring job ad, create a campaign to find employees. Make sure your social media is up to date and mirrors the fun culture of your organization. Be sure to look in places you may not have traditionally looked for candidates. Create a job interview process that’s interesting and enthusiastic. You’re definitely competing for talent, so doing all of these things will help you win.

We may be in a period of staff shortages, but there are still millions of people who want to work. Do just a little more for your employees and candidates than the small business down the street, and they will want to keep working for you.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Five Ideas to Attract Staff During the Great Resignation” is available now! Subscribe here: [link]

Even during the Great Resignation, small business owners still have a lot in their control to be able to attract the perfect candidate to their workplaces. Here are some ideas to help you do just that: [link]

Our latest blog article provides five ways that you can attract staff during the Great Resignation. Get instant access here: [link]

A convergence of issues has created one of the greatest talent shortages in our lifetimes. With boomers retiring in large numbers, pandemic and opioid deaths, people not wanting to work for low wages, child care availability disappearing, tighter immigration policies, people rethinking their life choices, and so many other factors, it’s no wonder small businesses are having trouble finding workers. Learn 5 ways to attract staff in our latest blog article: [link]

If you’re struggling to hire workers, consider making fun a vital part of your workplace. Even if there are numerous deadlines and serious work to be done, your workplace can still be fun. A good start is bringing food to work; camaraderie always blossoms around food. Learn more here: [link]

Hiring Tip: Add perks, and not just the usual suspects.

Beyond increased pay and the usual benefits, try adding:

Flex hours
Work-at-home days
Pet insurance
Extra PTO
Child care

Learn more here: [link]

Are you having trouble attracting and keeping staff? Sign up for our newsletter to learn five ways to attract staff: [link]

What’s in Store for 2022?

Tue, 28 Dec 2021 13:04:01 GMT

BizBoost News
Volume 11, Issue 14
For distribution 12/27/21; publication 12/30/21

What’s in Store for 2022?

The last few years have been unlike any other in our lifetimes. As we close out 2021 and enter 2022, it’s the perfect time to reflect on what we’ve learned, what’s happening now, and what we want to accomplish in the next 12 months. Here are some things to consider.

Celebrate Your Successes

Give yourself time and permission to review what you have completed in 2021. You’ve likely learned and accomplished more than you think. Compare your status on January 1, 2021 with today, and celebrate the changes you’ve made and projects you’ve finished.

Monetize These Trends

Several trends will continue from 2021 into 2022 and beyond. How can you monetize them in your business?

The move to remote work is likely to continue, especially in certain industries, such as financial services and technology, where the work is delivered digitally. Hiring virtual workers gives employers access to a larger talent pool as well.
Expanding your online presence, including ecommerce, is paramount. Most businesses spent more time improving the online interface between company and customers as more customers clamored for increased online purchasing, delivery, and curbside pickup. Some brick-and-mortar businesses adapted their business model to develop new digital services, enhancing their current product line.
Climate changes affected many businesses this year in at least two different ways. Some were victims of disasters via extreme weather. Others became more visibly supportive of climate initiatives, working these initiatives into their mission and offerings.
Accelerated automation using artificial intelligence is continuing to move through the technology adoption curve. Can your business benefit from AI-driven tech solutions?
Diversity initiatives will continue to be important in 2022 and beyond.
Workforce demographics are finally changing. More young people are working in 2021 compared to pre-pandemic numbers, while workers over 50 are retiring at a faster-than-normal rate. Millennials are starting businesses in large numbers, and one statistic shows that 80 percent of those businesses are profitable.
Staffing struggles are real in many industries. Many business owners who can no longer find employees have had to resort to outsourcing, contract, part-time, virtual, and many other capacity options to keep their businesses afloat.
Social responsibility has been prioritized by Millennials and members of Gen Z, making business owners ask how they can do their part in their businesses.
Life-goal realignment is something that has swept the world as people experience a wake-up call because of the pandemic. The search for purpose and meaning is one of many side effects of this trend. Ask yourself how this trend is affecting your customers and employees.

Set 2022 Goals

Let’s not call them New Year’s resolutions, shall we? Still, it’s the right time of year to decide how you can incorporate the trends above with the personal and business successes you’d like to complete by the end of 2022.

Make your list, then schedule milestones on your calendar so you can track your progress.

And above all, have a happy New Year in 2022.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “What’s in Store for 2022?” is available now! Subscribe here: [link]

It’s almost 2022, are you ready for the new year? Learn how to monetize the newest trends from this past year for a successful 2022 in our latest blog article: [link]

Have you set your 2022 goals?

Let’s not call them New Year’s resolutions, shall we? Still, it’s the right time of year to decide how you can incorporate some 2021 trends with the personal and business successes you’d like to complete by the end of 2022. Learn more in our latest blog article: [link]

One trend from 2021 that is here to stay is the expansion of businesses into the online/ecommerce world. Have you optimized your business for success leading into 2022? Learn more in our latest blog article: [link]

Are you actively celebrating your successes? Now is the perfect time to review what you have completed in 2021 - you’ve likely learned and accomplished more than you think. Find out what we suggest for your 2021 review here: [link]

Several trends will continue from 2021 into 2022 and beyond. Do you know how you can monetize them in your business? Learn more in our latest blog article: [link]

The move to remote work is likely to continue, especially in certain industries, such as financial services and technology, where the work is delivered digitally. Do you know how to utilize this trend in your own business? Sign up for our newsletter to learn more: [link]

Understanding Sales Conversion Metrics

Tue, 28 Dec 2021 13:02:47 GMT

BizBoost News
Volume 11, Issue 13
For distribution 12/13/21; publication 12/16/21

Understanding Sales Conversion Metrics

How effective is your sales function in your business? One way to answer that question at a deep level is to calculate conversion metrics for every step of your sales cycle. These numbers are not tied to any numbers on your balance sheet or income statement, but can help you realize a better return on your sales and marketing expenses.

Your Sales Cycle

The first step in determining conversion metrics is to outline the steps a typical prospect takes before they become a customer. Here are a few examples:

Retail example.

1.     Prospect walks into store.
2.     Sales clerk interacts.
3.     Prospect selects item(s).
4.     If clothing, they may visit a dressing room and try it on.
5.     Prospect stands in checkout line.
6.     Customer completes purchase.

Ecommerce example.

1.     Prospect visits website and uses search or navigation.
2.     Prospect views lists of products.
3.     Prospect views product page.
4.     Prospect places product in cart.
5.     Customer completes checkout.

Service example.

1.     Prospect sends email requesting more info or an appointment.
2.     Customer service/sales clerk responds to email.
3.     Prospect makes appointment.
4.     Salesperson and prospect meet.
5.     Sales person perform follow-up activities.
6.     Prospect agrees to price/purchase.
7.     Client signs contract and pays initial deposit.

For each step in the processes above, the prospect can fail to proceed to the next step. Conversion is measured at each step with the percentage of prospects that proceed to the next step.

Not all steps are worth measuring. Sales and marketing personnel must agree on when a prospect becomes a viable lead. Measurements should occur from lead to customer.

Let’s expand on the service example.

1.     Prospect sends email requesting more info or an appointment.
2.     Customer service/sales clerk responds to email.
3.     Prospect makes appointment.

The first meaningful conversion can be calculated between steps one and three. Let’s say in the month of November, the company received 100 emails from prospects requesting more info and 50 made appointments. The conversion rate is calculated as follows:

# Appointments made (step 3) / # prospect emails received (step 1) = 50/100 = 50%

To improve the 50 percent conversion rate, ask yourself what can be done between steps one and three to improve the prospect-facing activities.

Here’s another example:

4.     Salesperson and prospect meet.
5.     Salesperson performs follow-up activities.
6.     Prospect agrees to price/purchase.
7.     Client signs contract and pays initial deposit.

The second meaningful conversion rate in the service sales process can be calculated between steps four and seven. (You could also measure 3-4, 4-6 and 6-7.) Let’s say 40 appointments were kept and 30 became clients.

# New clients signed (step 7) / # salesperson and prospect meet (step 4) = 30/40 = 75%

To improve the 75 percent, ask yourself what you can do in steps four through seven to improve the prospect’s experience.

Actionable Sales Intelligence

As you measure these results over time, are you improving or declining for each conversion? Is one salesperson closing more business than any of the others? How can you improve each step so that conversion is increased? You will have more questions than answers when you first start calculating these numbers. You will also likely have many “aha” moments of insight you can use to improve the prospect’s journey.

If conversion is extremely low in the first few steps, it could be that marketing is not sending you qualified leads. In that case, marketing needs to improve before conversion can improve. If conversion is low in the final few steps, follow-up activities may need to be strengthened.

In any case, measuring conversion throughout your sales cycle will pinpoint the weakest areas so you can improve. When you can increase your conversions, your marketing and sales costs will decrease, and you will become more effective.

And if we can help you with any of these measurements, please reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Understanding Sales Conversion Metrics” is available now! Subscribe here: [link]

Do you have a solid understanding of your sales conversion metrics? These are key numbers that can provide great insight into how your company is functioning. Learn how to calculate your conversion metrics and the importance of these metrics in our latest blog article: [link]

Calculating sales conversion metrics can seem complicated at first, but there are simple equations you can follow to gain great insight into your business. Find out what these equations are and how to utilize them in our latest blog article: [link]

Once you understand your sales conversion metrics, you’ll have answers to many questions, including:

-Are you improving or declining for each conversion?

-Is one salesperson closing more business than any of the others?

-How can you improve each step so that conversion is increased?

You will also likely have many “aha” moments of insight you can use to improve the prospect’s journey. Learn more about how to calculate your sales conversion metrics here: [link]

Our latest blog article, “Understanding Sales Conversion Metrics”, will help you understand the importance of sales conversion metrics for your business and how you can easily calculate them. Access the article here: [link]

The sales process is different for every business. If the dollar amount of the customer purchase is small, the sales cycle needs to be very short or it won’t be efficient. For larger purchases, the sales cycle might be longer. The first step in determining conversion metrics is to outline the steps a typical prospect takes before they become a customer. Learn more in our latest blog article: [link]

Do you need help calculating conversion metrics in your business? Our latest blog article explains how to calculate these metrics and how these numbers will help you in your success. Sign up for our newsletter to learn more: [link]

Time Tracking

Tue, 28 Dec 2021 13:00:15 GMT

BizBoost News
Volume 11, Issue 12
For distribution 11/29/21; publication 12/02/21

Time Tracking

Keeping track of how you and your workers spend time is one of the most important things you can do in your business. Labor costs can be a large portion of expenses, and understanding how time is spent can help you manage your business better in a multitude of ways.

Benefits of Time Tracking

There are many reasons and benefits to track time:

If you price by the hour, time tracking is mandatory, because without it, you won’t be able to invoice your clients accurately.
Tracking time helps managers understand how long a task should take, where employees may need training, and where processes and procedures may need improving.
Information on time reports can be fed into a project management system and reviewed to make better fixed fee pricing estimates on future jobs and customer proposals.
Time tracking feeds into job costing for construction companies.
For manufacturing businesses, time tracking feeds into labor reports.
Time tracking is used in payroll systems to pay hourly workers accurately.
Time tracking can increase accountability among workers as they become more aware of how they spend their working time.
When time is budgeted in advance, actual hours worked can be compared to see how the budget is used and whether it was too much or too little.
Time tracking allows managers and business owners to determine when they need to hire additional staff because the backlog has become too large.

What Is Time Tracking?

Time tracking is the recording of how you spend your time. You can use paper, a spreadsheet, or time tracking software to log the task you are working on and the length of time you worked on it. For example, here’s a simplistic example of a time log, or timesheet, for one day:

Employee	Activity	Hours	Billable	Complete?
JS	Client A Bookkeeping	4.5	Y	Y
JS	Training Webinar	1.5	N	Y
JS	Finding Client A’s file	.5	N	Y
JS	Client A Tax Return	1.5	Y	N
	Total	8.0

Employees may be required to complete timesheets on a daily or weekly basis, which are then turned into their managers and payroll administrators.

Managers can take time tracking to the next level by adding hourly payroll costs as well as the employee’s hourly billing rate to gain insight into further time-tracking financial metrics.

Time Tracking Software

There are many different types of time-tracking software:

A time clock allows employees to “punch in” when they arrive for work and “punch out” when they leave. This type of machine is mostly used for payroll in a manufacturing setting.
Time tracking applications allow workers with computers to enter their time via the application. In some cases, workers can enter their time via a mobile device.
Some companies will have their time tracking function embedded into their project management, job costing, or billing system. Employees would then enter their time via those applications.

Getting Employees on Board with Time Tracking

Reporting your hours in a time-tracking system is one of the least favorite tasks of employees and requires an education in mindset and attitude more than any software instructions. It’s important that your employees do not feel like you will be “Big Brother” when it comes to using their time data.

For best results, let employees know how the timesheet data will be used. Allay their fears that they will not get fired or in trouble if they feel something “took too long,” which can often translate into an employee “fudging” their hours on a task where they might have made a mistake. Make sure they know they won’t be penalized in any way for what they report.

Communication is key in getting employees to report their time accurately so that managers and owners can receive meaningful information. Have managers tie time tracking to an employee’s personal career goals to increase adoption and reduce resistance.

Personal Time Tracking

Time is our most precious commodity, and tracking your personal time can give you insights into how you are investing in yourself. Some really interesting questions can be considered when you have some time data for yourself.

How much “downtime” do you need each day?
How much time are you spending on your life goals?
Are you spending time on what you consider to be important?

Getting Started with Time Tracking

If you’re considering time tracking or would like to take your current time-tracking function to the next level, please reach out. We may be able to help with integration, implementation, the accounting aspect of time-tracking, and financial metrics and reports.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Time Tracking” is available now! Subscribe here: [link]

Time tracking is very important when it comes to managing your employees at the best level possible. By utilizing time-tracking software, you can make positive and profitable changes within your business. Get instant access to our latest blog article, “Time Tracking”, here: [link]

Do you utilize time tracking in your business? In our latest blog article, we discuss the benefits of time tracking and how you can start implementing it in your business. Learn more here: [link]

How much “downtime” do you need each day?
How much time are you spending on your life goals?
Are you spending time on what you consider to be important?

Learn more about time tracking in our latest blog article: [link]

DID YOU KNOW… There are many different types of time-tracking software:

A time clock allows employees to “punch in” when they arrive for work and “punch out” when they leave. This type of machine is mostly used for payroll in a manufacturing setting.
Time tracking applications allow workers with computers to enter their time via the application.
Some companies will have their time tracking function embedded into their project management, job costing, or billing system.

Find out more here: [link]

If you’re considering time tracking or would like to take your current time-tracking function to the next level, we can help! We may be able to help with integration, implementation, the accounting aspect of time tracking, and financial metrics and reports. Learn more in our latest blog article: [link]

Time tracking is the recording of how you spend your time. Managers can take time tracking to the next level by adding hourly payroll costs as well as the employee’s hourly billing rate to gain insight into further time-tracking financial metrics. Sign up for our newsletter to learn more about how time tracking can benefit your business: [link]

The Power of Thank-You Notes

Tue, 30 Nov 2021 13:37:48 GMT

BizBoost News
Volume 11, Issue 11
For distribution 11/15/21; publication 11/18/21

The Power of Thank-You Notes

As we approach the holiday of giving thanks, it’s the perfect time to think about how we can use thank-you notes in our businesses and lives to express our gratitude to others.

When to Say Thank You

There are many opportunities in business to say thank you:

When a client or associate sends you a referral that results in business
When an employee goes out of their way to fix a problem or make a customer happy
When a customer makes a large purchase
When a vendor over-delivers
When someone sends a gift
After a speaking engagement or an event when someone has hosted you
When someone provides advice that has been helpful, whether face to face or in a book or article
When someone does a favor or something nice that you’d like to reward

Keeping thank-you notes top of mind will help you think of more opportunities to use them.

What to Say in Your Thank-You Note

You don’t have to be a professional writer to make a thank you note sound good. Just write from the heart. Let the recipient know what you are thanking them for. Express a detail about the item or activity involved. And then thank them again.

If you are unsure about what to say, write a draft first that you can edit. Then transfer the version that you are happy with to your stationery. It’s far better to hand-write your thank-you note than to use a computer-generated one.

Personalized stationery for thank-you notes is definitely recommended. They add a formal and professional touch to your thank-you note, enriching the experience for the recipient.

Sending gift baskets can be a good idea, but sending a hand-written thank-you note alone can be the most powerful action you can take, especially if it is not expected.

While many businesses send holiday cards each year, thank-you notes can be far more powerful. If your budget is limited, you might want to replace your holiday mailing with thank-you notes instead.

One more thing to consider NOT doing is making your thank-you note into an advertising event for your company. If you want to send promotional items such as t-shirts, mugs, or other items, do NOT do it with your thank-you card. Sending thank-you notes is not a marketing event; it’s a time for gratitude. Sending clients promotional items can be very welcome; just don’t do it at the same time.

Helping others feel gratitude is the fastest way to experience happiness. Sending thank-you notes is not only good business, it’s good for our health and wellness, too.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “The Power of Thank-You Notes” is available now! Subscribe here: [link]

As we approach the holiday of giving thanks, it’s the perfect time to think about how we can use thank-you notes in our businesses and lives to express our gratitude to others. Learn more about when it is appropriate to send a thank-you note and how to write one in our latest blog article: [link]

Do you write thank-you cards? In business, we can sometimes overlook the power of a handwritten note. Learn more about the best times to write a thank-you card in our latest blog article: [link]

Helping others feel gratitude is the fastest way to experience happiness. Sending thank-you notes is not only good business, it’s good for our health and wellness, too. Learn more here: [link]

While many businesses send holiday cards each year, thank-you notes can be far more powerful. If your budget is limited, you might want to replace your holiday mailing with thank-you notes instead. Learn more here: [link]

Not sure what to include when writing a thank-you note? You don’t have to be a professional writer to make a thank you note sound good. Just write from the heart, let the recipient know what you are thanking them for, and express a detail about the item or activity involved. Learn more here: [link]

Do you know when it is appropriate to send a thank-you card? There are many opportunities in business to say thank you:

When a client or associate sends you a referral that results in business
When an employee goes out of their way to fix a problem or make a customer happy
When a customer makes a large purchase
When a vendor over-delivers
When someone sends a gift
After a speaking engagement or an event when someone has hosted you
When someone provides advice that has been helpful, whether face to face or in a book or article
When someone does a favor or something nice that you’d like to reward

Learn more in our latest blog article: [link]

Our latest blog article discusses the power of writing a thank-you card and when it is appropriate in business. Sign up for our newsletter to learn more: [link]

Controlling Labor Costs

Tue, 30 Nov 2021 13:35:16 GMT

BizBoost News
Volume 11, Issue 10
For distribution 11/01/21; publication 11/04/21

Controlling Labor Costs

For service businesses, labor cost is the largest expense that is incurred in business operations. For many other types of businesses, the cost of labor is a large component of overall costs. Controlling labor costs so that they stay in line with what’s best for the organization is an important management function. Here are several ways to control or reduce labor costs in your business.

1. Encourage employee retention.

If well-trained employees leave, you must replace them with inexperienced employees that need training, resulting in a temporary loss of productivity. Some turnover can be good, but if it’s too high, it can result in increased labor costs.

2. Automate tasks.

Save labor by automating any tasks that can be automated that employees are still performing. While some automation might require extensive capital outlays, many systems can be implemented that are not costly and that have an immediate return on investment.

3. Streamline processes.

Are you operating your business most efficiently? Or are employees still doing tasks that are outdated or that have lost meaning over time?

One place to look is the interface between departments. Is your sales team duplicating marketing’s efforts? Is customer service answering the same question without communicating to operations how it should be permanently fixed? Enhancing communications among employees throughout the company can cut down on labor costs.

4. Train employees.

Make sure employees are doing what they should be doing by training them. If they are using systems and other tools, make sure they have completed courses in those systems and tools.

5. Provide the right tools for the job.

Do employees have the tools they need to do the job well? Be sure you’re providing them with the latest version of Microsoft Excel® versus an abacus, as an extreme example.

6. Cross-train employees.

If an employee is out sick, does a customer’s job sit around until they are back? Check to see if your employees can easily pick up another’s work in the case one employee is out.

7. Optimize employee schedules.

In many industries such as restaurant and retail, employee scheduling can make the difference between profit and loss. Software can help you determine how many employees you need and at what time. Ensuring employees know when to come in and what to focus on when they do will go a long way toward productivity as well.

In some cases, a shorter workweek is a possibility that can drive lower labor costs.

8. Outsource.

Outsourcing may be cheaper than using employees on certain tasks, especially if you have tasks that require specialized knowledge or skills, or you might not need a full-time person. Outsourcing can also help you determine how long a task will take so you can plan better if you do decide to take the activity in house.

9. Review compensation.

Compare your company’s current salaries to the going market rate for salaries in your industry. Are your salaries in line? Adjust accordingly for future hires.

You can also consider different pay structures, such as commission-based, to better match performance to labor costs. Bonuses paid out in lieu of annual raises allows you to better manage accumulated pay raises in the case of long-term employees.

10. Review benefits.

Employees love perks but they can be costly. If necessary, this is an area where expenses can be cut to reduce costs. This can include reviewing time off policies, employer’s percentage share of 401(k) plan contributions, and additional health care coverages such as dental and vision.

Hiring part-time employees that are ineligible for benefits can also be a way to cut labor costs.

11. Cut overtime pay.

If overtime pay is so high that added headcount should be considered, then it’s too high. On the other hand, some overtime pay is fine if it avoids hiring a headcount you don’t fully need.

12. Incentivize workers.

Try increasing productivity and results with incentives built into your compensation plan.

13. Provide remote work options.

Studies show remote workers are more productive. Plus, overhead expenses such as rent, furniture, and utilities will plummet, saving expenses overall.

14. Hire smart in the first place.

The saying is “hire slow, fire fast.” Finding the right worker for your business is pretty much an art form. Interview, test, check background and references, and put employees on a trial basis to be sure you have the best workers.

15. Maintain a safe working environment.

Follow all of the regulatory requirements, but follow common sense as well to ensure you have a safe workplace for employees.

16. Understand the accounting side of labor costs.

If you pay an employee $15 per hour, understand that your labor cost is far more than $15. Not included in that $15 is:

Employer’s share of payroll taxes (Social Security and Medicare)
Vacation and time off
Paid holidays
Workers compensation insurance
Unemployment insurance (federal and state)
Health care
401(k) matches
Company picnics and events
The cost of all other employee perks

The cost to keep an employee includes even more than labor costs and should include allocations for these expenses:

Computer equipment and software applications
Rent, utilities, furniture, parking spaces, building repair
Employer-paid meals, snacks, and coffee
Training
Events and travel
Meeting time and expenses (this deserves to be listed separately)

If you’d like us to help you calculate your labor costs per employee hour, please reach out.

Employees make your business possible, but to maintain a business profit, labor costs must be kept in line. Follow these ideas to keep your team productive and your labor costs in shape.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Controlling Labor Costs” is available now! Subscribe here: [link]

For service businesses, labor cost is the largest expense that is incurred in business operations. For many other types of businesses, the cost of labor is a large component of overall costs. Learn the importance of controlling your labor costs in our latest blog article: [link]

In our latest blog article, “Controlling Labor Costs”, we provide 16 ways to control and/or reduce your labor costs. Get instant access here: [link]

Employees make your business possible, but to maintain a business profit, labor costs must be kept in line. Follow these ideas to keep your team productive and your labor costs in shape: [link]

Do you know the true hourly cost of your employees? If you pay an employee $15 per hour, your labor cost is far more than $15. Not included is:

Employer’s share of payroll taxes
Vacation and time off
Workers comp
Unemployment insurance
Health care
401(k) matches
And much more

Learn more here: [link]

Controlling your labor costs is crucial to running a profitable business. Are you utilizing every available method to control/reduce your labor costs? Find out in our latest blog article: [link]

Have you automated everything possible in your business? While some automation might require extensive capital outlays, many systems can be implemented that are not costly and that have an immediate return on investment. Learn more in our latest blog article: [link]

Controlling labor costs so that they stay in line with what’s best for the organization is an important management function. Our latest blog article covers several ways to control or reduce labor costs in your business. Sign up for our newsletter to learn more: [link]

The Four-D Time Management Trick to Boost Your Efficiency

Mon, 01 Nov 2021 12:19:14 GMT

BizBoost News
Volume 11, Issue 9
For distribution 10/18/21; publication 10/21/21

The Four-D Time Management Trick to Boost Your Efficiency

Time is our most precious personal resource; once we’ve spent it, we’ll never get it back. As busy entrepreneurs, we seem to have less time than anyone else, so it just makes sense to look for ways to use our time wisely. Here is one technique that has worked for many.

The Four D’s

When you think about it, there are only four actions you can take against any one of the many tasks you have on your plate:

1.     Do it.
2.     Delegate it.
3.     Delay it.
4.     Delete it.

As you approach each task on your to-do list, ask yourself which one of the four D’s is best.

Do It

The first option is simply to do the task yourself. Get it done, checked off, and out of the way. This is often the best option if it’s urgent, important, or you are the only one with the experience and training to do it.

It might sound counter-intuitive at first, but doing a task might not be the best option. Let’s look at the other three options before we decide.

Delegate It

If your to-do list is full of simple, routine actions, then delegating is a strong choice. Delegating is also a great choice for tasks that are beyond your skill set and that would take too much learning-curve time away from your core work. If you don’t have time to do everything yourself, then getting help is a smart alternative to doing it yourself.

Getting help doesn’t mean you have to hire a full-time employee. You can get help in a multitude of ways:

Engage a company to do a task. From walking dogs to managing Google Ad campaigns to handling your bookkeeping and taxes, there are companies like ours that would be delighted to take over your task for you.
Automation is a form of delegation. Can software do what you are doing?
Find someone on Fiverr.com or UpWork. You can hire someone for a five-minute task or a 5-day task. Find them on any website that lists freelancers for hire.
Plenty of people are looking for part-time jobs, just in case you don’t have enough work for a full-time person.

If you can write instructions about how to perform the task, you can delegate it. And if you’re worried about losing control or quality, simply add milestones where you check the person’s work. Initially, it might not be faster, but in the long term, it will pay off.

Delay It

If a task is not urgent or important, delaying it might be the right option. The problem with this option is that you have to handle the task at least twice: once when reviewing it and deciding whether to do it, and again when you finally decide to do it. If you keep deciding to delay it, you’ve handled it more than twice. Not only can this take up precious time, it can be a drain on your energy as you see the incomplete task on your to-do list for a long time.

However, there are times when delaying a task is best:

Delay if it’s not urgent and you have other urgent items to attend to.
Delay if it’s not important.
Delay to prioritize other, more profitable tasks first.
Delay when the task is best done in batches. Here’s an example: Rather than answer each email as it comes in, think about blocking out three times a day where you check and clear your email. You can apply this time-batching concept to just about everything to gain efficiency: posting on social media (write and schedule a month’s worth in advance), returning phone calls, attending meetings (book them all on one day and keep other days clear), and running errands (delay until you have three to four errands, then do them all in one run.

Be careful of delaying a task over and over again. Something else may be going on with your mindset:

The task may be uncomfortable for you (find someone that loves to do what you don’t and delegate), or
How to get started is ambiguous (get training or find someone experienced to shorten your learning curve).

Delete It

Some tasks should never have been added to your to-do-list in the first place. When there is no return on investment for a task, perhaps the best choice is to delete it.

Take a look at some of the things you do out of habit. Does it still make sense to do that task, or is it simply done because it was always done that way?

Do, Delegate, Delay, Delete

Try the four-D time management trick for yourself to get an instant boost in efficiency and productivity.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “The Four-D Time Management Trick to Boost Your Efficiency”is available now! Subscribe here: [link]

It might sound counter-intuitive at first, but doing a task right away may not be the best option for a busy entrepreneur. Find out what your alternative options are in our latest blog article: [link]

Do you get overwhelmed by the number of tasks you have to do on a daily basis? Sign up for our newsletter to learn the one time management trick that can give you an instant boost of efficiency and productivity: [link]

When you think about it, there are only four actions you can take against any one of the many tasks you have on your plate:

1.     Do it.
2.     Delegate it.
3.     Delay it.
4.     Delete it.

As you approach each task on your to-do list, ask yourself which one of the four D’s is best.

Learn more about this time management trick in our latest blog article: [link]

Our latest blog article, “The Four-D Time Management Trick to Boost Your Efficiency”, discusses how the four-D time management trick can give you an instant boost of efficiency and productivity. Learn more in our latest blog article: [link]

Do you time-batch your tasks? Here’s an example: Rather than answer each email as it comes in, think about blocking out three times a day where you check and clear your email. You can apply this time-batching concept to just about everything to gain efficiency: phone calls, attending meetings, running errands, etc. Learn more about the benefits of time-batching and other time management tricks here: [link]

Have you heard of the four-D time management trick? It’s a great way to get an instant boost in efficiency and productivity. Find out more here: [link]

Gearing Up for Holiday Sales: 2021 Trends and Opportunities

Mon, 01 Nov 2021 12:17:33 GMT

BizBoost News
Volume 11, Issue 8
For distribution 10/04/21; publication 10/07/21

Gearing Up for Holiday Sales: 2021 Trends and Opportunities

The 2021 holiday sales season will give businesses a chance to continue their online migration from 2020 trends, with opportunities for more refinement and improvements. The key is to bring as much as possible online and integrate all of your customer touch points into an omnichannel of positive experiences.

Let’s take a look at some trends in retail that we can apply to many other industries. These trends will strengthen our businesses and position us well for the future.

Strong E-Commerce Presence

As people increased online shopping and delivery last year, the trend is expected to continue beyond the pandemic. For this reason, all businesses should strengthen their online presence, especially their e-commerce presence.

Many retail establishments benefit from a complete ecommerce solution, including a storefront, shopping cart, online payment process, and automated fulfillment. They can expand their online effectiveness with these features:

Enable chat features between customers and store clerks to simulate the conversation the customer might experience in the physical store
For clothing, post detailed sizing charts, imitate the dressing room mirror with try-on automation, and use photos of models in all shapes and sizes
Create how-to videos to show customers ways to effectively use the product
Expand photography so customers can see all angles of the product as well as how it can be used
Display and sort user reviews to help customers decide
Implement clear navigation and search options so customers can find what they want. Today, many customers research online, then visit the physical location to finalize their transaction.

Expanding your business’s e-commerce presence doesn’t just apply to retail. For example, businesses in the services space have implemented appointment-setting and payment processing. Real estate agents have enhanced virtual home tours. Many businesses with physical goods and documents have beefed up delivery options and implemented curbside pickup.

Each business has a unique sales cycle that a customer goes through when purchasing goods and services. The question for business owners to ask is how they can bring most of that experience online.

Mobile

The vast majority of transactions are now occurring on mobile devices. If your business’s mobile presence is not optimal, then you’ll want to make that a priority this year to catch up with your competitors.

Social

More and more consumers are using social media channels – Instagram, YouTube, TikTok, Snapchat, LinkedIn, Pinterest, Twitter, Clubhouse, and Facebook -- to discover and purchase items that delight them. Wise business owners will invest more budget into attracting customers from this channel.

Holiday Seasons

With the move to online shopping, the holiday season has been extended from just one day or one weekend to entire months. Consumers are shopping earlier and all year long. Retailers and other businesses can benefit by always having some kind of sale or attraction going on. Here are the key holidays for the fourth quarter:

Columbus Day
Halloween, the second most profitable holiday (Christmas is first)
Veterans Day
Thanksgiving Day
Black Friday
Small Business Saturday
Hanukkah
Cyber Monday
Christmas Eve
Christmas Day
Boxing Day
Kwanzaa
New Year’s Eve

How does your business fare when it comes to a fully online experience? Use these trends to boost sales growth in 2021 and beyond.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Gearing Up for Holiday Sales: 2021 Trends and Opportunities”is available now! Subscribe here: [link]

Our latest blog article, “Gearing Up for Holiday Sales: 2021 Trends and Opportunities”, covers the opportunities businesses have in the upcoming holiday season and how to make the most of it! Get instant access here: [link]

Do you know what trends and opportunities are coming in the 2021 holiday season? These trends could strengthen your business and position you well for the future if you know how to take advantage of them. Learn more here: [link]

A strong e-commerce presence is crucial in today’s market. As people increased online shopping and delivery last year, the trend is expected to continue beyond the pandemic. For this reason, all businesses should strengthen their online presence. Learn more here: [link]

How does your business fare when it comes to a fully online experience? In our latest blog article, we cover the upcoming trends for the 2021 holiday season. You can use these trends to boost sales growth in 2021 and beyond. Find out more here: [link]

Do you know which holidays are the most profitable for businesses? We list the top holidays for businesses, and how to take advantage of the upcoming holiday season, in our latest blog article. Sign up for our newsletter to learn more: [link]

Making Customers Pay… You

Mon, 27 Sep 2021 18:56:14 GMT

BizBoost News
Volume 11, Issue 7
For distribution 9/20/21; publication 9/23/21

Making Customers Pay… You

If you grant credit to customers or take recurring credit card payments, the unexpected can happen: a customer fails to pay on time, the credit card expires, or the check bounces. What can a business owner do to spend as little time as possible on these items but get the cash collected? Plenty. Here are our ideas:

Re-examine your credit policy

Is there any way you can have credit customers pay up front? Perhaps you can collect a deposit to minimize your risk. Perhaps you can request final payment right before you deliver the final product. Perhaps you can convert credit terms to a layaway situation, like they use in retail.

The best way to speed up collections is to change your payment terms if at all possible.

Be proactive

If the client is late with a payment, respond quickly. Send them proactive reminders. Give them a call just before the payment is due if you have this luxury.

If the customer pays by credit card, monitor credit card expiration dates, and send reminders to update the card before it expires.

Make it easy and clear on your website support section how a customer can update their credit card number on file at any time. Automating this process will save you a ton of time.

Payment failures and disputes

It’s inevitable that you will experience customers whose credit card payments, ACH withdrawals, and checks fail or bounce. As a business owner, you need to have solid procedures for you or your employees to process these exceptions.

When a credit card payment fails, make sure your shopping cart, merchant account, or gateway processor notifies you of the failure. Contact the customer right away to correct the situation. The same is true of bounced checks or failed ACH deposits. Assess any extra fees and flag the customer account if you want to place any future payment or credit restrictions on them.

You may also have customers that report disputes to their credit card company. Respond timely to these transactions as there is always a tight deadline, and make sure you have all of the documentation you need at the time of sale if this comes up.

Develop solid collections processes

If the payment is late, start your collections routine. Send out friendly reminders at first; then get progressively aggressive as the payment grows later and later.

Follow-up steps are very important. Make sure your customer is getting your notifications, and give them a call before you have to take legal steps with them.

Finally, if necessary, turn the payment over to a collections agency who can impact the customer’s credit report and possibly collect your money.

We hope you do not have too much of this activity in your business. But if you do, being proactive is a great way to reduce it. Check to see if you have all the processes described above in place to handle collections in your business so that your cash continues to flow.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Making Customers Pay… You” is available now! Subscribe here: [link]

Business Tip: Re-examine your credit policy to avoid problems with late payments

Is there any way you can have credit customers pay up front? Perhaps you can collect a deposit to minimize your risk or request final payment right before you deliver the final product. The best way to speed up collections is to change your payment terms if at all possible. Learn more in our latest blog article: [link]

What can a business owner do when a customer fails to pay on time? There are plenty of options for handling a situation like this. In our latest blog article, we describe four ways to spend as little time as possible on these items while still getting the cash collected: [link]

Do you have a solid collections process set up for your company? When dealing with late-paying customers, having a standard process to follow is key. Find out more about developing this process here: [link]

As a business owner, it’s inevitable that you will experience customers whose credit card payments, ACH withdrawals, and checks fail or bounce. You need to have solid procedures for you or your employees to process these exceptions. Learn more about how to handle payment failures and disputes in our latest blog article: [link]

There are many ways to handle late payments from clients, as well as ways to prevent future problems and make the process easier for everyone. Learn four ways to handle late-paying clients here: [link]

In our latest blog article, we explain multiple processes to have in place in your business to handle collections so that your cash continues to flow. Sign up for our newsletter to get instant access: [link]

Six Things to Look for Every Month in Your Accounting Reports

Mon, 27 Sep 2021 18:54:39 GMT

BizBoost News
Volume 11, Issue 6
For distribution 9/6/21; publication 9/9/21

Six Things to Look for Every Month in Your Accounting Reports

While Net Profit and your cash balance are probably the first two numbers you look at on your monthly Profit and Loss Statement, don’t stop there. There are a lot more gems you can glean if you dig a little deeper and look through the following six lenses at your data.

1. Automation Opportunities

Look at your labor detail reports as well as professional and outsourcing expenses to see what areas might be ripe for automating. Is your admin spending too much time scheduling meetings? If so, automate everyone’s calendars. Are you finding places where duplicate data-entry is driving up costs? Get Zapier or another integration solution.

On the flip side, cancel tech spending where you are no longer using the app and get those expenses off your books.

2. Duplicate or Excessive Expenses

Where are you paying for things twice on your Profit and Loss Statement? Where could you scale down? As an example, if you are renting 5,000 square feet but now only need 2,000 because everyone wants to work from home, see if you can re-negotiate your lease or sublet that extra space.

Do you have redundancy in your insurance policies? Perhaps your liability and your business umbrella both cover workers compensation. See what you can do to reduce the overlap.

You might only need three phone lines but are paying for five. Retainer and recurring expenses should be inspected carefully; are you getting what you’re paying for?

3. Outsourcing Opportunities

Are their companies that can do tasks or work cheaper and better than how you are doing them now? If so, outsourcing could be a profitable option to look into further.

4. Indications of Fraud, Theft, or Excessive Risk

As owners, we need to protect our business investment, and we should always be on the lookout for signs that our investment may be at risk. If your numbers look odd or unexpected, you should be skeptical and investigate further.

5. Tax Savings Situations

Investing in tax planning almost always yields great results, especially this year with new tax relief available to qualifying businesses. Get help from a tax professional to see if you qualify or are close to qualifying for tax deductions, credits, and savings.

6. Sales Growth

This list would be remiss without mentioning the obvious opportunities of finding ways to grow sales. Your sales results can give you an idea of where more growth can occur, where promotion opportunities exist, and where completely new revenue sources can be created.

After you’ve examined your cash number and your net profit, try these six new filters to get even more ideas to run your business better.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Six Things to Look for Every Month in Your Accounting Reports” is available now! Subscribe here: [link]

Business Tip: Look for automation opportunities in your financial reports. Look at your labor detail reports as well as professional and outsourcing expenses to see what areas might be ripe for automating. Get more great tips here: [link]

Do you look for tax saving situations in your accounting reports? Investing in tax planning almost always yields great results, especially this year with new tax relief available to qualifying businesses. Get help from a tax professional to see if you qualify or are close to qualifying for tax deductions, credits, and savings. Find out more here: [link]

Sales growth is an important factor to look at in any accounting report. Your sales results can give you an idea of where more growth can occur, where promotion opportunities exist, and where completely new revenue sources can be created. Learn more here: [link]

Net Profit and your cash balance are not the only factors you should be looking at in your accounting reports. In our latest blog article, we describe six key factors to pay attention to. Find out more here: [link]

Did you know you can use your accounting reports to watch for indications of fraud, theft, and excessive risk? As owners, we need to protect our business investment, and we should always be on the lookout for signs that our investment may be at risk. Learn more here: [link]

Accounting reports can hold valuable information about our business, beyond just Net Profit and cash balance. However, you have to know what you are looking for first. In our latest blog article, we provide six key areas you should look for in your next accounting report. Sign up for our newsletter to learn more: [link]

Help Wanted: You Have Options!

Wed, 25 Aug 2021 13:09:40 GMT

BizBoost News
Volume 11, Issue 5
For distribution 8/23/21; publication 8/26/21

Help Wanted: You Have Options!

Many people have complained about the worker shortages this year. If you need additional workers in order to grow your business, here are some ideas for your consideration.

Where to Look for Workers

We may think of workers as only being employees, but there are a lot more options if you’re open-minded. Here’s a list of places to find workers of all kinds:

Recruiters
Employment agencies
Online job portals, such as Indeed, SimplyHired, and ZipRecruiter.
Social media, including LinkedIn Jobs
Your own website, email list, or employee referrals
Temp agencies
Specialized online job portals that cater to your industry and business type
Virtual assistant organizations
Day labor online sites and pickup areas
Job matching sites such as Upwork, Fiverr, and Freelancer.
Colleges, when you need interns and entry-level workers
Your local unemployment office
Small business development centers
Virtual assistant agencies or businesses
Chambers of Commerce and other business organizations
Professional organization directories where a license is needed, such as hair stylists, dentists, or CPAs
Friends, colleagues, competitors, and neighbors; your own personal or business network
Craigslist and local classified ads
High school guidance counselors if you want to hire straight out of high school
Outsourcing to a company that provides the labor that does what you need
Volunteer matching sites

Options for Adding Workers/Labor

There are many ways you can increase labor in your business. The obvious is hiring employees. Beyond employees, there are many more options than you might first think:

Contractors, where you have a contract for a particular job and meet all of the IRS and other compliance requirements
Temp workers, where you “lease” an employee who stays on the temp agency payroll or hire them outright with a limited term of employment.
Part-time workers on your payroll
Companies that you outsource the work to and contract with as vendors to provide a particular service. They may outsource your labor needs or simply have labor as a component of the product or service you have contracted them to supply.
PEO, or professional employer organizations, act as a client’s employer and hire their employees as well as manage payroll and other HR compliance tasks.
Interns, which are unpaid positions. Check your state and local rules for laws regarding hiring interns.
Volunteers. This is common if you have a nonprofit organization.

With all of these options available, it should be a bit easier to find ways to add labor and grow your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Help Wanted: You Have Options!” is available now! Subscribe here: [link]

Many people have complained about the worker shortages this year. If you need additional workers in order to grow your business, we’ve compiled some ideas for your consideration. Check out our latest blog article here: [link]

Business Tip: You do not have to hire a new employee in order to add labor to your business. Alternative options include:

Contractors
Temp workers
Part-time workers on your payroll
Companies that you outsource the work to and contract with as vendors
PEO, or professional employer organizations
Interns
Volunteers

Learn more about the options available to you here: [link]

Sometimes we need extra help in our business, but we don’t have enough work or the extra funds to bring on a new employee. If you are in this situation, we can help! We’ve compiled a list of alternative options for adding more labor to your business. Find out more here! [link]

There are numerous places to look when trying to hire someone new. This includes:

Recruiters
Employment agencies
Online job portals
Social media
Your own website, email list, or employee referrals
Temp agencies

Find the full list, as well as other ideas for adding labor to your business, in our latest blog article: [link]

There are many ways you can increase labor in your business. The obvious is hiring employees. Beyond employees, there are many more options than you might first think. In our latest blog article, we provide a list of options for adding workers/labor: [link]

Are you struggling to find new workers for your business? In the current worker shortage, many people are looking for alternative ways to add labor to their business. In our latest blog article, we provide a list of places to find new employees, as well as alternative ways to add labor. Find out more here: [link]

Are you looking for ways to add labor to your business? In our latest blog article, we provide numerous ways to find new employees, as well as alternative options for adding labor that do not include hiring a new team member. Sign up for our newsletter to get instant access: [link]

Direct vs. Indirect Costs (and Why You Should Care)

Wed, 25 Aug 2021 13:08:14 GMT

BizBoost News
Volume 11, Issue 4
For distribution 8/9/21; publication 8/12/21

Direct vs. Indirect Costs (and Why You Should Care)

If you’re a business owner who wants to continually find ways to increase your profitability, then you’ll want to learn about direct and indirect costs. Breaking out your expenses into direct and indirect categories can help you arrive at the most profitable volume of sales for your business.

Direct Expenses

Expenses that fall into the direct cost category are ones that relate directly to the items you sell. Here are some examples.

If you have a flower shop, the cost of the flowers is a direct cost. So is the cost of vases, ribbons, cards, and the labor to put the arrangements together.
If you are a law firm, the labor and any materials or supplies spent on serving a client is a direct cost.
If you own a pool building company, the costs of the concrete, tiles, filter, pump, and labor to build the pool are direct costs.
If you run a toy store, the purchase of the toys is a direct cost.

Direct expenses, unlike indirect expenses, will vary proportionally to the volume of items you sell. The more you sell, the higher your direct expenses. The less you sell, the lower your direct expenses.

In general, direct expenses should be recorded in Cost of Goods Sold. You can get your Gross Profit figure by calculating Sales less Cost of Goods Sold (or COGS). Gross Profit Margin is an important percentage to know in your business. It is computed as follows: (Sales – COGS) / Sales.

Some small service companies might not bother to break out labor into direct and indirect on the Profit and Loss statement each month, but it can be useful to break out periodically or when you are re-evaluating your pricing and profitability.

Direct expenses are important in making pricing decisions, but so are indirect expenses.

Indirect Expenses

Indirect expenses are expenses that you need to incur to run your business, but are not directly related to the items you sell. Here are some examples:

Telephone
Rent
Insurance
Utilities such as electricity, gas, water, and garbage pickup
Administrative labor, such as a receptionist or supervisor
Education and training
Professional services, such as legal, HR, IT, or accounting
Office supplies
Hardware and software
Business permits

Fixed and Variable Costs

Direct and indirect costs can each be further broken down into fixed and variable costs. For example, HR expenses, education, and training will go up as you sell more and hire more workers. That makes them variable costs.

Other indirect expenses will remain flat no matter what your sales volume is, such as rent. That means they are fixed costs.

Pricing Your Items

When calculating your sales prices, use direct costs to be sure your profit margin is high enough to cover an allocation of your indirect expenses. In other words, sales price should always cover all direct costs plus a profit component, plus enough to cover indirect costs when considering the volume of your sales.

The lower your sales volume, the higher the price per item should be. A higher sales volume gives you more room to spread out your indirect costs over more sales. That leads to either higher profits, or you can lower your price to be more competitive.

If you have questions about direct and indirect costs or want help validating your pricing decisions, please feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Direct vs. Indirect Costs (and Why You Should Care)” is available now! Subscribe here: [link]

Do you know why you should care about direct vs. indirect costs? Find out in our latest blog article: [link]

Business Tip: Direct and indirect expenses can each be further broken down into fixed and variable costs. For example, HR expenses, education, and training will go up as you sell more and hire more workers. That makes them variable costs. Other indirect expenses will remain flat no matter what your sales volume is, such as rent. That means they are fixed costs. Learn more here: [link]

If you’re a business owner who wants to continually find ways to increase your profitability, then you’ll want to learn about direct and indirect costs. We explain it all in our latest blog article: [link]

Direct expenses are ones that relate directly to the items you sell. Indirect expenses are ones you need to incur to run your business, but are not directly related to the items you sell. Learn more about these two categories in our latest blog article: [link]

Breaking out your expenses into direct and indirect categories can help you arrive at the most profitable volume of sales for your business. Don’t know the difference between the two categories? Find out more here: [link]

Do you know what counts as an indirect expense? Examples of an indirect expense include:

Telephone
Rent
Insurance
Utilities
Administrative labor

Learn more about indirect expenses and how they differ from direct expenses here: [link]

As a business owner, it is important to understand the difference between direct and indirect expenses, as it can help you find ways to increase profitability in your business. In our latest blog article, we explain this difference. Sign up for our newsletter for instant access: [link]

How to Better Track Your Carbon Footprint

Tue, 27 Jul 2021 12:01:56 GMT

BizBoost News
Volume 11, Issue 3
For distribution 7/26/21; publication 7/29/21

How to Better Track Your Carbon Footprint

You may already be doing your part to help save the planet. From recycling to driving electric cars, to avoiding the use of plastic bottles and carrying reusable bags to the grocery store, there are myriad ways for all of us to make a difference—both big and small. However, it may be important to stop and ask ourselves: Are we currently doing enough?

If you have considered pursuing an even more sustainable lifestyle, guess what? There’s an app for that! Actually, there are a few different apps to help you accomplish the goal of tracking your carbon footprint. In doing so, you can physically see your carbon environmental impact.

Below, we have detailed some of these apps and their benefits. Take a look! If you have any questions, please don’t hesitate to reach out.

Capture

Capture is an app that calculates users’ monthly CO2 targets by asking a series of questions. These questions include things like, “How many flights a year do you take?” and “What kind of diet do you adhere to?” Capture also utilizes GPS tracking to predict emissions from transportation.

Specifically, the app was designed to not only make planet-friendly living possible, but also make the process easy—or, easier—for those interested. With the capture app, users can conveniently “track, reduce, and remove CO2 emissions from everyday life.”

Interestingly, the app can be used single-handedly or with colleagues. If you are a numbers person who likes measuring and tracking, Capture is for you.

Almond

UK-based, Almond’s mission is simple: to help as many people reach Net Zero carbon emissions as possible, and in just four easy steps:

1.     Understand your carbon footprint
2.     Discover responsible brands
3.     Earn offset coins when you make a switch
4.     Offset your carbon footprint

Almond allows you to scan products to not only learn about that particular item's story but also see what's in the product (i.e., if it's environmentally-friendly). Then, you can earn money with crypto rewards to plant and protect trees, which offset your carbon footprint. The more you earn, the faster you can grow your forest to achieve a carbon-balanced lifestyle and reach your personal CO2 Net Zero.

Pawprint

Pawprint allows individuals to fight climate change in the palm of their hands. This online tool helps to measure, understand, and reduce your carbon footprint.

Known as the “Eco companion,” this app delivers the following:

Science-based data you can trust
Carbon-reducing tips and challenges that suit your particular lifestyle
Better insight into how your carbon footprint measures up to the rest of the UK (this app is also UK-based)

One factor that sets Pawprint apart from other carbon footprint tracking apps, is that all of its data is validated by Mike Berners-Lee’s Small World Consulting, an expert in the industry.

Of course, there are plenty of other smartphone apps and tools available to help you better track and reduce your carbon footprint, including The Extra Mile, My Planet, and Carbon Footprint. The trick is to find the app or tool that works best for you and your lifestyle.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “How to Better Track Your Carbon Footprint” is available now! Subscribe here: [link]

You may already be doing your part to help save the planet. From recycling to driving electric cars, to avoiding the use of plastic bottles and carrying reusable bags to the grocery store, there are myriad ways for all of us to make a difference. However, it may be important to stop and ask ourselves: Are we currently doing enough? Learn more about tracking your carbon footprint in our latest blog article: [link]

Are you trying to live a more sustainable lifestyle? It can be hard to truly understand how our habits affect the environment. In our latest blog article, we provide three apps that can help you track your carbon footprint: [link]

Do you use Capture? Capture is an app that calculates users’ monthly CO2 targets by asking a series of questions. These questions include things like, “How many flights a year do you take?” and “What kind of diet do you adhere to?” Learn more about Capture and other apps to help track your carbon footprint here: [link]

There are several apps out there with the goal of helping you track (and reduce) your carbon footprint. For example, the app “Almond” has the mission to help as many people reach Net Zero carbon emissions as possible, and in just four easy steps. Find out what these steps are in our latest blog article: [link]

If you have considered pursuing a more sustainable lifestyle, guess what? There’s an app for that! Actually, there are a few different apps to help you accomplish the goal of tracking your carbon footprint. Learn more here: [link]

Have you heard of the app “Pawprint”? This app allows individuals to fight climate change in the palm of their hands. The online tool helps to measure, understand, and reduce your carbon footprint. Find out more here! [link]

Have you tried tracking your carbon footprint? Most of us know the usual ways to reduce waste, from recycling to carrying reusable grocery bags, but do you truly know the impact you’re having on the environment? In our latest blog article, we describe three apps that can help you track your carbon footprint. Sign up for our newsletter for instant access: [link]

Five Accounting Reports You Don’t Want to Be Without

Tue, 27 Jul 2021 12:00:52 GMT

BizBoost News
Volume 11, Issue 2
For distribution 7/12/21; publication 7/15/21

Five Accounting Reports You Don’t Want to Be Without

While we all have to keep our monthly books up to date for tax and other compliance reporting purposes, we should never stop there. Your books hold a wealth of information that you can use to run your business better. Here are five reports you should never be without.

Budget-to-Actual Profit and Loss Statement

Hopefully, you’ve already seen how powerful the Profit and Loss Statement is. Let’s take it a deeper level and add budget comparison to it. With this addition, you can plan your way toward the sales and profit figures you want. You’ll know every month whether you’re on track, ahead of the game (give yourself five stars!), or need to hustle to make it up next month.

Most accounting systems allow you to enter monthly budget numbers for your sales and expense accounts. You can enter them at the beginning of each year and adjust them throughout the year. It’s kind of like having Google Maps on a cross-country journey. You will be able to see where there is construction and traffic, so you can take another route. You can also see where there are cool places to stop, so you can take advantage of the fun. Your numbers tell a story.

Actual-to-Prior-Year Profit and Loss Statement

This is an easy report to generate, assuming you have at least two years’ worth of information in your accounting system. This report allows you to compare your business’s results for this year with how you did last year. Are you ahead? Behind? Have new products and services? New employees? New expenses?

With this comparison, you can take action based on how you would like your business to perform this year versus last year. While this report is readily available, few businesses study it to glean the insights available, so be sure to spend some time analyzing the data in this report.

Sales by Item, Customer, or Division (or All Three)

Choose the breakout – customer, item, division, or another – that is meaningful to your business type. If possible, arrange for a searchable database so you can drill down into the detail even more. What trends do you see? What opportunities do you see?

Operations Reports

To find out more about your profitability and to get into the details of how your expenses are matching up with your sales, you need to review your operational accounting reports. The exact report will depend on the type of your business. If you are in services, you’ll need payroll reports and time sheets. If you are in retail, you’ll need inventory reports. If you are in construction, you’ll need job cost reports. And if you are in manufacturing, you’ll need cost of goods sold and other reports to evaluate assembly and production efficiency.

Cash Reports

The last report that is essential for good business management is all about cash. There is more than one option here, and these reports can include Accounts Receivable Aging, Accounts Payable Aging, cash flow forecasting, and various cash flow reports.

If you grant customers credit, you’ll want to actively make sure that money is collected on time from clients. If customer balances get too old, action must be taken. Even if you don’t grant credit, transactions such as returns, expired credit cards, and bounced checks need special attention.

The same is true for amounts you owe to vendors, with the Accounts Payable Aging report.

If you run tight with your cash balance, you may want to have a cash flow forecasting report on hand. This report gives you good warning as to when your bank balance may dip below your needs. You can then delay vendor payments or find an infusion of cash to cover the shortfall.

With these five categories of reports, you will have dozens of opportunities to be proactive about running your business and improving your results. And if we can help you find or generate them, please reach out anytime.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Five Accounting Reports You Don’t Want to Be Without” is available now. Subscribe here: [link]

While we all have to keep our monthly books up to date for tax and other compliance reporting purposes, we should never stop there. Your books are a wealth of information that you can use to run your business better. Check out our latest blog article for five reports you should never be without: [link]

Business Tip: Five important reports for your business are Budget-to-Actual Profit and Loss Statement, Actual-to-Prior-Year Profit and Loss Statement, Sales by Item, Customer, or Division (or All Three), Operations Reports, and Cash Reports. Learn more about these reports in our latest blog article: [link]

Do you use a Budget-to-Actual Profit and Loss Statement? Hopefully, you’ve already seen how powerful the Profit and Loss Statement is. Let’s take it a deeper level and add budget comparison to it. With this addition, you can plan your way toward the sales and profit figures you want. Learn more about this report and other helpful reports in our latest blog article: [link]

Inside every business’s sales information is a treasure trove of possibility. Where are you seeing growth, and how can you capitalize on it? Where do you see a slowdown, and can you run a promotion to juice things up? With the reports described in our latest blog article, you’ll learn new ways to understand your books. Learn more here: [link]

Do you run all of the accounting reports that could help your business succeed? In our latest blog article, we describe five categories of reports that can provide you with opportunities to be proactive about running your business and improving your results. Find out more here: [link]

Having the right accounting reports can provide great opportunities for your business. Learn more about five important accounting reports in our latest blog article: [link]

Your books are a wealth of information that you can use to run your business better. In our latest blog article, we list five reports you should never be without. Sign up for our newsletter to get instant access: [link]

Re-Imagining Your Chart of Accounts

Thu, 01 Jul 2021 12:48:46 GMT

BizBoost News
Volume 11, Issue 1
For distribution 6/28/21; publication 7/1/21

Re-Imagining Your Chart of Accounts

The Chart of Accounts is the backbone of your accounting records. It is a list of all of the accounts – bank, loan, asset, revenue, and expense – in your General Ledger, which holds all of your accounting transactions.

Think of your Chart of Accounts as a collection of buckets that hold dollars of items related to your business. Each bucket should be meaningful and have a purpose. For example, if you have three checking accounts, you need three buckets on your Chart of Accounts to hold the transactions for each bank account. It would not make any sense to have more or less than exactly one bucket for each checking account.

While it’s standard to have certain buckets or accounts for assets, liabilities, and equity, the number of buckets that you create for revenue and expenses can vary greatly from company to company. It makes sense to create and design your accounts for what you need for tax, accounting, and decision-making purposes in your business.

Let’s say you are a hair stylist. Do you want your revenue to be in one big bucket? That’s all that Uncle Sam requires. But for decision-making purposes, you may want to break out men’s and women’s services, or cuts versus color and other treatments, or both. In that case, you would have four revenue accounts: men’s cuts, men’s color, women’s cuts, and women’s color. This type of detail would help you see where your revenue is highest so that you can better manage your supplies as well as target your marketing to that group.

Having certain expense accounts matched to the tax requirements can reduce extra work at tax time. For example, separating travel costs – hotel and airfare – from meals and entertainment is a common one, as is keeping meals and entertainment separate.

The goal is to get your Chart of Accounts working for you. If, when you first set up your accounting system, you accepted the default Chart of Accounts, it may be time to redesign and restructure the list so it serves your needs better. Here are some additional considerations.

What revenue or expenses do you want to watch more carefully? Should they be broken out in more detail? You can also use subaccounts to group transactions.
Is there cleanup work to do due to misspelling or other duplication?
Have you interviewed all the financial information users in your company to see how they need the data organized?
What spreadsheets could be eliminated if the Chart of Accounts was better organized?
Does your Chart of Accounts support your budgeting process? If two people are responsible for controlling spending from one account, would it be useful to break it out?
Do you have too many accounts? Or too few? (Most people have too many due to poor data entry hygiene.)
Are you properly using other categorizing features in the accounting system, such as classes, divisions, and custom fields?
What reports could produce better information for taking profit-focused actions in your business if the Chart of Accounts stored the transactions differently?
How could key performance indicators be better linked to the Chart of Accounts?

These questions can help you begin thinking about how your Chart of Accounts can better serve you. After all, it’s your business, your accounting system, and your Chart of Accounts.

And if we can help you through the redesign process, please let us know.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Re-Imagining Your Chart of Accounts” is available now! Subscribe here: [link]

Business Tip: Think of your Chart of Accounts as a collection of buckets that hold dollars of items related to your business. Each bucket should be meaningful and have a purpose. Learn more here: [link]

It just makes sense to create and design your Chart of Accounts for what you need for tax, accounting, and decision-making in your business. Learn all about the benefits of re-structuring your Chart of Accounts and how to get started in our latest blog article: [link]

Have you thought about re-structuring your Chart of Accounts? In our latest blog article, we explain the benefits of re-imagining your Chart of Accounts, and provide a list of questions that can help you start thinking about how your Chart of Accounts can better serve you. Find out more here: [link]

There are many things to consider when re-imagining your Chart of Accounts. Questions to ask yourself may include:

What revenue or expenses do you want to watch more carefully?
Do you have too many accounts? Or too few?
How could key performance indicators be better linked to the Chart of Accounts?

Learn more about what to consider when re-imagining your Chart of Accounts here: [link]

DID YOU KNOW… While it’s standard to have certain accounts for assets, liabilities, and equity in a Chart of Accounts, the number of accounts that you create for revenue and expenses can vary greatly from company to company. Sign up for our newsletter to learn more about re-imagining your Chart of Accounts to fit your business: [link]

Clubhouse: The New Kid in Town

Thu, 24 Jun 2021 14:05:54 GMT

BizBoost News
Volume 10, Issue 26
For distribution 6/14/21; publication 6/17/21

Clubhouse: The New Kid in Town

Are you familiar with Clubhouse? This social media platform is still pretty new, but currently picking up steam. Perhaps one of the easiest ways to describe Clubhouse is like this: When you were a kid, did you ever hold a glass to a wall with your ear glued to it in order to hear the conversation in the next room? Clubhouse is kind of like that, only scaled and organized.

Clubhouse is an audio-only platform where you can start a room based on a topic and others can join the room and conversation. You can bring people up to the “stage” who have raised their hand. The platform supports multiple languages, and at any one time, you can see rooms in Russian, Spanish, Mandarin, German, Japanese, English, and many more.

Think of Clubhouse this way: It’s like an interactive live podcast. The platform hosts both personal and business conversations, so there is a lot of noise to wade through, but that’s true of every social app. Many people love the lack of video that is so pervasive on other platforms.

The main newsfeed in Clubhouse shows active rooms that you might like. To join a room, just click anywhere on the room description. Once in a room, you should hear the speakers talking, or you might hear music if it’s a concert. You are muted until you are invited on stage.

In a room, everyone can see everyone else’s avatar. Clicking on other people’s avatars is encouraged and brings up a bio and direct links to the person’s Twitter and Instagram accounts. You have lots of space on Clubhouse to build an extensive bio, and this is primarily how other people in the room can get to know you, along with hearing what you have to say if you participate.

Clubhouse is an entirely new and fresh way to market your business and let people know about your products and services.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Clubhouse: The New Kid in Town” is available now! Subscribe here: [link]

Are you familiar with Clubhouse? Clubhouse is an audio-only platform where you can start a room based on a topic and others can join the room and conversation. Learn more in our latest blog article: [link]

Clubhouse seems ideal for two formats: professional speakers who want an audience, and groups of friends who want to hang out and informally chat at a scheduled time. For full details on Clubhouse, click here:[link]

Interestingly enough, Clubhouse supports multiple languages, and at any one time, you can see rooms in Russian, Spanish, Mandarin, German, and many more. Learn more here: [link]

When you were a kid, did you ever hold a glass to a wall with your ear glued to it in order to hear the conversation in the next room? Clubhouse is kind of like that, only scaled and somewhat organized. For full Clubhouse details, click here. [link]

Have you ever said to yourself, “I’d love to be a fly on the wall in that room?” Or, “I’d love to be in the same room with so-and-so celebrity?” Clubhouse could be for you! Find out more here: [link]

Clubhouse notably stands out from other platforms due to the fact that its founders are very hands-on, well-grounded, and enthusiastic. Learn more about Clubhouse here. [link]

Cool Tech Tools: Airtable

Thu, 24 Jun 2021 14:05:00 GMT

BizBoost News
Volume 10, Issue 25
For distribution 5/31/21; publication 6/3/21

Cool Tech Tools: Airtable

When it comes to running a successful business, how important is it to be organized? In a word: very. Now, how would you rank your organization skills? Honestly, the answer really doesn’t matter. We can always get help from technology, and this is where Airtable comes in.

Airtable goes beyond spreadsheet solutions when it comes to tracking teams, projects, tasks, dates, and other information in your business. Cloud-based, Airtable allows you to organize information in a database – they call them bases – of tables. While databases can be complicated, Airtable makes it easy because it looks just like a spreadsheet.

Airtable allows users to create a flexible database that fits their particular needs. Some of the use cases include project tracking, product development, event management, team collaboration, lists, planning, pipeline management, calendars, and so much more. Templates are available to jump-start your project.

Because Airtable is like a spreadsheet, it has been compared to Microsoft Excel®. However, it is important to remember that Airtable is like a spreadsheet and like a database. Further, Excel can function only as a traditional spreadsheet, while Airtable gives its users more options, especially when it comes to customization.

Getting into the details of Airtable, fields can even be added for attachments, long text notes, checkboxes, links, and barcodes. It provides options for filtering, sorting, and grouping data.

Airtable also provides for integrations with other applications in case you need to move information from one place to another or add functionality.

Airtable has both free and paid plans. You can find out more here: https://airtable.com/

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “What Is Airtable?” is available now! Subscribe here: [link]

Familiar with Airtable? It’s a cloud-based database tool with lots of flexibility. Learn more in our latest blog article: [link]

DID YOU KNOW: Airtable is free to use for teams of any size, yet there are also paid plans available that offer additional features, storage, and support. Get full details here: [link]

Need help getting organized? Airtable could be the platform for you. Learn more about Airtable here: [link]

Airtable allows users to create a flexible database that fits their particular flow and needs. Fields can even be added for attachments, long text notes, checkboxes, links, and barcodes. Interested in learning more? Click here: [link]

While slightly similar to Excel, Airtable is not simply another Excel-like platform. Learn more here: [link]

Some of the use cases for Airtable include project tracking, product development, event management, team collaboration, lists, planning, pipeline management, calendars, and so much more. Get full details here: [link]

With Airtable, there are more than 50 prebuilt apps to help bring data to life, custom automations, and the ability to collaborate with anyone, any time, from anywhere. Read our latest blog article for more insight: [link]

Financing Options for Small Businesses

Tue, 25 May 2021 14:49:57 GMT

BizBoost News
Volume 10, Issue 24
For distribution 5/17/21; publication 5/20/21

Financing Options for Small Businesses

All small businesses need cash to operate, and there are many ways to generate the required cash. The most common way that many businesses get started is when the owner makes an investment from their savings or other personal cash. But what if it’s not enough? In this article, we’ll take a look at some of the more common ways to finance a business.

Community banks

Most community banks are big proponents of small businesses, so this is a great place to start. Establish a relationship first by opening business checking and savings accounts. Then apply for a line of credit, which is a pre-approved loan that you can tap when you need it.

If you plan to purchase a building or equipment, you should be able to get a loan by using the asset as collateral. Business expansion loans are possible too; you may be able to borrow against your accounts receivables or other contracts with guaranteed income.

Beyond community banks, there are also many online lending agencies, banks, credit unions, and community development financial institutions (CDFIs) to apply to for a loan.

When applying for a loan, you will likely need a good personal credit rating and either a strong business plan or audited financial statements to show the financial condition of your business.

Partners and investors

Investors such as angel investors or venture capitalists can provide cash in exchange for either a debt or an equity position in your business. Obtaining financing this way is a big decision since you are no longer the sole owner of the company if you give away some of your equity.

Another option is to bring a partner into your business. Typically, the partner will provide cash as well as management or other skills that complement yours and be active in running the business with you.

Government support

There are many government programs to help with small business financing this year due to the pandemic. The Small Business Administration has loans and programs available to small businesses on a consistent basis. This year, they are also managing the forgivable Paycheck Protection Program (PPP) loans, economic disaster funding, shuttered venue operator loans, and restaurant relief grants, to name a few.

You might also want to see what’s available from your county, city, and community governments. Last, organizations like the Small Business Development Council (SBDC) can provide space, funds, and training to small businesses in their area.

Nonprofits and educational institutions

Your business may also be able to benefit from nonprofits and educational institutions that provide grants, scholarships, and other funding opportunities to businesses and business owners in certain categories. For example, your local chamber of commerce may have programs and funding options available for local businesses.

Factoring

Factoring is an option for businesses with accounts receivable balances. A cash advance can be made with the accounts receivable balances as collateral. This type of loan is common in the retail fashion industry where items are ordered months in advance of when they are sold, causing a cash flow gap.

Crowdfunding

Crowdfunding has been made popular by platforms such as Kickstarter. A business can apply on these platforms for funding, and individuals can make contributions. Sometimes the business will promise goods or services in exchange for funding.

Credit card advances

It’s common for owners to put startup expenses on and use cash advances from their personal credit cards. This is one of the most expensive ways to fund a business and should be used as a last resort.

The fine print

All financing options come with fine print. Terms and interest rates vary significantly. Sometimes, there is a cliff, where you have to pay everything back all at once. Be sure to carefully read any agreements you sign and run them by a lawyer if you don’t understand them. Your personal financial situation could suffer greatly if you aren’t careful.

For example, businesses that got a PPP loan and later received a buyout offer may not be able to sell because the loan agreement prohibits them from doing so. If they didn’t read the fine print and sold the company anyway, they are now personally liable to pay back the PPP loan proceeds.

If you have questions or want to discuss financing options, please feel free to contact us anytime.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “Financing Options for Small Businesses” is available now! Subscribe here: [link]

All small businesses need cash to operate, and there are many ways to generate the required cash. Check out our latest blog article for ways to finance your business: [link]

Business Tip: Factoring is a financing option for businesses with accounts receivable balances. A cash advance can be made with the accounts receivable balances as collateral. This type of loan is common in the retail fashion industry where items are ordered months in advance of when they are sold, causing a cash flow gap. Learn more about factoring and other ways to finance your business here: [link]

The most common way that many businesses get started is the owner makes an investment from their savings or other personal cash. But what if it’s not enough? Check out our latest blog article for more ways to finance your business: [link]

Community banks, partners and investors, and government assistance are just a few ways to find financial support to get your business started. In our latest blog article, we provide a list of numerous ways to finance your business – check it out! [link]

Business Tip: All financing options come with fine print. Be sure to carefully read any agreements you sign and run them by a lawyer if you don’t understand them. Your personal financial situation could suffer greatly if you aren’t careful. Find out more here: [link]

DID YOU KNOW… Most community banks are big proponents of small business, so this is a great place to start when looking for financing options for your business. Learn more about financing options in our latest blog article: [link]

Have your tried crowdfunding to raise financial support for your business? A relatively new way of financing, crowdfunding has been made popular by platforms such as Kickstarter. A business can apply on these platforms for funding, and individuals can make contributions. Sign up for our newsletter to learn more about financing options for your business: [link]

What Is Internal Control?

Tue, 25 May 2021 14:47:37 GMT

BizBoost News
Volume 10, Issue 23
For distribution 5/3/21; publication 5/6/21

What Is Internal Control?

In accounting, a key term to know is “internal control.” Internal control is the series of processes and procedures that are performed within the organization to ensure the integrity and accuracy of the financial information and reporting of that organization. Internal control is very important to consider in order to protect the business owners, employees, vendors, investors, and other stakeholders.

In a small business, maintaining good internal control is often a challenge since staff size is smaller and resources are limited. Yet, it is essential to understand so that the business owners understand what risks they are taking every day in their businesses. A good system of internal controls can help the organization reduce the risk of fraud, safeguard against loss, and demonstrate good business practices.

Key Concepts

Segregation of duties is the first of three key concepts of internal control. It means that tasks should be assigned to different people when there is a risk that having everything assigned to one person could hide errors or even theft. For example, the person who opens the mail and receives checks should not be the same person who applies the check to the correct customer in Accounts Receivable.

Delegation of authority is the second key concept of internal control. While the owner has ultimate control, they cannot do everything. They must delegate to staff. Staff have the responsibility to maintain internal controls in their area of responsibility.

System access is the third concept of internal control. Access to documents, rooms, computers, applications, and other items should be on a need-to-know basis to reduce risk. While one person might have system access to enter a transaction, they should not also be the one to have system access to review or approve that same transaction.

Business Operations

Every aspect of the business should be considered while setting up the company’s policies and procedures. In a small business, an easy way to develop internal controls is to review each major transaction flow and implement the controls needed.

On the customer side, this includes receiving the customer order, sales contracts, shipping, invoicing, managing accounts receivables, collections, bank deposits or merchant reconciliations, and cash management. It can also include customer service, pricing, and promotional activity.

On the vendor side, the process includes adding controls for vendor selection, purchase orders, receiving, bill pay, managing accounts payable, payments, managing travel and expense accounts, and company credit cards.

Depending on the company, additional areas that need to be reviewed for internal control include inventory and supply chain management and government contracts, if any.

When hiring, the process of hiring, onboarding, training, evaluating performance, and payroll should be considered. Safety is also an important consideration.

A very large part of internal control development should focus on the information technology operations of the company. Areas include user access and controls, password management, naming conventions, physical security, disaster recovery, and network and applications development, updates, and change control. Data entry should also be considered and is best included when developing controls for the customer, vendor, and employee functions.

Additional functions that need internal control processes include treasury and financing; financial reporting, budgeting, and planning; records storage, access, retention, and destruction; asset management; and insurance.

Internal controls can be applied to small businesses as well as large organizations. It’s all about being able to feel confident that your business is operating with financial integrity, accuracy, efficiency, and a reduced risk of failure. If you have questions about how internal control applies to your business, be sure to reach out to us any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “What Is Internal Control?” is available now! Subscribe here: [link]

In accounting, a key term to know is “internal control.” Internal control is the series of processes and procedures that are performed within the organization to ensure the integrity and accuracy of the financial information and reporting of that organization. Learn why internal control is important in our latest blog article: [link]

Business Tip: In a small business, an easy way to develop internal controls is to review each major transaction flow and implement the controls needed. Learn more about implementing internal controls here: [link]

Internal control is very important to consider in order to protect the business owners, employees, vendors, investors, and other stakeholders in your company. Learn more about internal control here: [link]

The three key concepts of internal control are:
-Segregation of Duties
-Delegation of Authority
-System Access
Learn more about these concepts and implementing internal control in our latest blog article:[link]

In a small business, maintaining good internal control is often a challenge since staff size is smaller and resources are limited. Yet, it is essential to understand so that the owners understand what risks they are taking every day in their businesses. Find out more about internal control here: [link]

DID YOU KNOW… A good system of internal controls can help the organization reduce the risk of fraud, safeguard against loss, and demonstrate good business practices. Find out more here: [link]

Are you confident that your business is operating with financial integrity, accuracy, efficiency, and a reduced risk of failure? Implementing internal controls can put your mind at ease and help your business run smoothly. Sign up for our newsletter to learn more: [link]

Getting to the Next Level of Your Business

Wed, 21 Apr 2021 11:55:53 GMT

BizBoost News
Volume 10, Issue 22
For distribution 4/19/21; publication 4/22/21

Getting to the Next Level of Your Business

Sometimes it’s hard for business owners to know how to take their businesses to the next level of growth and profitability. If you’ve been stuck at the same revenue or profit level for a while, it could be because knowing how to scale your business is not a skill in your skillset --- yet.

Enter a classic management book on scaling: High Output Management by Andrew Grove, ex-chairman and CEO of Intel. While it was written in 1983, it has made a recent comeback in Silicon Valley but is still not well-known outside of the Bay area. Many people who have read it say it’s the best management book they have ever read, life-changing even. It is certainly a timeless and invaluable read for business owners and managers.

In the book, Grove applies the principles of engineering and manufacturing production to management. It’s all about process: developing processes and procedures so that you can track what’s going on and measure the results, or output, every step of the way. Only then can you improve the process so that it leads to high output.

Measurement is an important concept in the book. No matter what business you’re in, you can apply the ideas of developing processes, measuring them, and improving upon them in your business.

Grove gets into how managers can motivate their team members and affect production outputs. He talks a lot about leverage, which enables scaling both positively and negatively, and how it can affect employees’ output. One example of positive leverage is when managers can add a “nudge” activity to enable their employees’ work. A negative example is when managers meddle and get in the way of the employee making progress.

In the section on meetings, Grove breaks them down by purpose and lends his ideas on how to run each type better. He touches on other key topics such as decision-making, planning, motivation, performance reviews, and values.

One significant highlight from the book is that if you’re motivated to become a better manager, and wish to improve the output of your organization, then there is nothing more important than training yourself.

Reading this book is a wonderful way to spend time learning new business skills you can use and benefit from immediately.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Getting to the Next Level of Your Business
Subscribe here: [link]

High Output Management has been praised throughout Silicon Valley, noted as being “a crash course for middle managers.” Get our feedback here! [link]

Have you read High Output Management yet? One significant highlight from the book is that if you’re motivated to become a better manager, and wish to improve the output of your organization, then there is nothing more important than training yourself. Learn more here!: [link]

High Output Management by Andrew Grove provides useful and worthy incite to any person who wants to be respected by his or her peers. Click here for the full review. [link]

High Output Management offers valuable advice and tips on myriad issues, including management, leverage, decision making, and output. [link]

If you’re in a managerial position, regardless of industry, then consider reading High Output Management by Andrew Grove. More here: [link]

High Output Management has long been considered a kind of “Bible” for management refreshing reading. Find out why by clicking here: [link] Find out more here!

Grove’s High Output Management proves the importance of individualism and optimism in becoming successful in a managerial role. Learn more here: [link]

5 Tips to Spice Up Working from Home

Wed, 21 Apr 2021 11:54:36 GMT

BizBoost News
Volume 10, Issue 21
For distribution 4/05/21; publication 4/08/21

5 Tips to Spice Up Working from Home

We’ve been in a pandemic for what seems like five years now, right? All joking aside, if you’ve been lucky enough to work from home this past year, then it’s possible that you are in the process of going stir-crazy. Or maybe you’re simply ready to shake things up a bit.

Working from home has its benefits. Yet, if you are someone who enjoys going to the office every day, chatting with co-workers in person, attending meetings that aren’t all virtual, and having a little spontaneity each week, then we’re here to help. Here are five tips to boost your WFH (working from home) environment.

1. Take Short Breaks

Taking regular breaks throughout the day is so important, and more so now than ever before! Without a doubt, these breaks will help you mentally (that is, keep you from going stir-crazy), but they can also help your work productivity and quality. These breaks don’t need to be—and shouldn’t be—long or strenuous.

Walk the dog. Stand up and do some light stretches. Run up and down your stairs. Go outside into your backyard. Dance to a song. Do a quick chore, like emptying or loading the dishwasher. Call a friend. Or choose your own favorite break activity. The goal is to get the blood flowing and the fog cleared from your mind.

2. Switch Up Locations

Get creative and switch up your location. If you have a yard or patio of some sort – and good weather -- that allows you to sit outside and work, perfect! If not, try working from the living room, the dining room, the kitchen, even the bedroom. The idea here is to change your surroundings a couple of times a week so that you don’t feel stuck or get lost in the monotony of a daily routine.

3. Treat Yourself with Lunch

Everyone needs something to look forward to, and what is better to look forward to than food? Depending on your budget, treat yourself to a special lunch once a week, every other week, or monthly. Consider trying new restaurants, different foods, places that you’ve always wanted to eat at but haven’t had the opportunity to do so. Not only will this be fun for you, but you will also be supporting small, local businesses. Win-win!

4. Dress for Success

We can probably all agree on one thing: sweatpants are comfortable! As such, it can be difficult to trade in the sweats for jeans or dress pants every day. After all, if you’re working from home and there’s no dress code to enforce, it can be hard to dress for success. Yet, doing so can give you a little burst of inspiration to get through the day. You can keep your outfits casual just as long as you have fun getting dressed. For example, you could have Sandal Mondays or Blue Shirt Fridays. Again, just have fun with it!

5. Create a New Playlist

Does music motivate you? Are you able to work and listen to music at the same time? If so, create different music playlists to listen to throughout your day. Try listening to various genres or new artists, anything that keeps you alert and stimulated, even excited about your workday. Depending on the type of music you enjoy listening to, you can even get up periodically and take dance breaks (Tip #1)!

Keep your day fresh, and boost your productivity and mood by using your imagination and trying the tips above.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “5 Tips to Spice Up Working from Home” is available now! Subscribe here: [link]

We’ve been in a pandemic for what seems like five years now, right? If you’ve been lucky enough to work from home this past year, then it’s possible that you are in the process of going stir-crazy. Learn 5 ways to spice up working from home in our latest blog article: [link]

Taking regular breaks throughout the day is so important, and more so now than ever before! This could include walking the dog, doing some light stretches, running up and down your stairs, or going outside into your backyard. Learn more about how to spice up your WFH life here: [link]

Working from home can get boring, especially if you are not used to it. Spice things up by treating yourself to lunch or switching up locations! Get more tips in our latest blog article: [link]

Tip: Everyone needs something to look forward to, and what is better to look forward to than food? Treat yourself to a special lunch once a week, every other week, or monthly to spice up your WFH life: [link]

Need to spice up your work-from-home life? Keep your day fresh, and boost your productivity and mood by using your imagination and trying the tips in our latest blog article: [link]

Getting bored working from home? Try listening to music to increase your motivation! Create different music playlists to listen to throughout your day. Sign up for our newsletter to learn more tips on spicing up your WFH life: [link]

Mix Up Your Revenues for More Profits

Thu, 25 Mar 2021 13:00:54 GMT

BizBoost News
Volume 10, Issue 20
For distribution 3/22/21; publication 3/25/21

Mix Up Your Revenues for More Profits

Many small business owners focus on generating more revenue every year, and that’s a wonderful goal. But not all revenue is created equally since some items are more profitable than others. If you sell more than one product or service in your business, then you may benefit from looking at your revenue mix.

While it’s fun to watch revenues grow, your business profit is what really matters. If your expenses grow faster than your profits, then you have a lot of activity going on, but you don’t get to keep as much of what you make.

An insightful exercise to try is to take a look at your revenue mix. Then you can ask “what if?” to optimize your profits.

Your Revenue Mix

Let’s say you offer three different services: Services J, K, and L. Your revenue pie looks like this:

J: $700K or 70% of the total

K: $150K or 15% of the total

L: $150K or 15% of the total

Total: $1.0 million

In this example, Service J is clearly the service making you the most revenue in your business. But is it making you the most profits?

The profit you receive from each of these service lines is as follows:

J: $80K

K: $10K loss

L: $30K

Total: $100K

While Service J is generating the most profit volume for your business, it’s actually Service L that’s the most profitable. Earning $80K on $700K yields 11.4% return on Service J, but earning $30K on $150K yields nearly double the return at 20%. Service L generates the most return. And if possible, Service K may need to be discontinued or turned around.

Optimizing Profits

Your strategy for a more optimum revenue mix might be to sell as much of Service L as possible, while eliminating or fixing the problem around Service K.

It’s fun to experiment with different revenue mixes. And of course, there are many more variables besides profit, such as:

What services/products do you prefer to work on/sell?
Are you able to sell more of the most profitable service or are there marketing limitations?
Is one service a loss leader for the others?
Are you able to adjust price on the lower margin services to increase your profits?

There are many more questions to ask and strategies to consider to make you more money, which is why we love being accountants.

A New Mix

We hope you’ll spend some time analyzing your revenue mix and having fun asking yourself “what if?” If we can help you expedite the process or add our perspective, please reach out anytime.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “Mix Up Your Revenues for More Profits” is available now! Subscribe here: [link]

Many small business owners focus on generating more revenue every year, and that’s a wonderful goal. But not all revenue is created equally since some items are more profitable than others. Find out how to mix up your revenue streams to increase profit in our latest blog article: [link]

Business Tip: If you sell more than one product or service in your business, you could increase your profits by taking a look at your revenue mix. Learn how in our latest blog article: [link]

There are many variables to consider when experimenting with different revenue mixes, such as:

What services/products do you prefer to work on/sell?
Are you able to sell more of the most profitable service or are there marketing limitations?
Is one service a loss leader for the others?
Are you able to adjust price on the lower margin services to increase your profits?

Learn more about mixing up your revenues to increase profits here: [link]

Are your expenses starting to outgrow your revenue? You can increase profit by taking a look at your revenue streams and seeing where you may be able to mix things up. Find out more here: [link]

Do you focus on profit volume, or do you also look at what generates the highest return within your services? Many only focus on profit volume, but the return is key to understanding what service is most valuable for you to offer. Learn more about understanding your revenue mix in our latest blog article: [link]

Are you looking for a way to optimize profits in your business? If you offer more than one service, take a look at your revenue mix to see how you can rearrange things to bring in the highest return for your services. Sign up for our newsletter to learn more! [link]

Managing Customer Service with Technology

Thu, 25 Mar 2021 12:57:15 GMT

BizBoost News
Volume 10, Issue 19
For distribution 3/8/21; publication 3/11/21

Managing Customer Service with Technology

Do you have a lot of customer service inquiries in your business? If so, it can be a challenge to manage them all. Being responsive with customer service can make all the difference in your company’s success, so it makes sense to take a look at some tools that can streamline the process.

The most common solution to automating customer service inquiries is to implement a ticket management system, which is also called help desk software. Some of the things that are important to consider include:

How fast you can respond to a customer
How well you solve the customer’s problem
How to track a customer’s issue if it has to be open for a while before it can be solved
How to do all of this in a cost-effective and efficient, yet friendly, manner

These days, an inquiry can come from a multitude of places:

Phone calls and voice mails
Emails
Text messages
Social media accounts, for all the platforms you have a business presence

- Posts, replies, and comments
- Messaging
- Any other methods you have set up in your social accounts

Chat feature on website
Snail mail

That’s a lot of inputs to organize. When they can all be fed into the same system, you have just unified your messaging input and taken a giant step toward organizing all of these moving parts. A good ticketing system will accomplish this, and the feature you want to ask for is multi-channel accessibility.

Keeping your customer service costs low is another factor, and one way to accomplish that is to help users self-serve and solve their own issues when they can. This requires a robust knowledge base feature. A knowledge base is a set of how-to articles and videos of the most frequently asked customer service questions.

Here are a few very basic topics to consider including in your knowledge base:

What forms of payment do you accept?
What is your shipping policy?
How can I get help if I need it?
What is your return/refund policy?
What is your privacy policy?
What is your guarantee?
Is my data secure with you?
How do I update my credit card/address/phone/email?
When will my items arrive?
What licenses do you have?
What are your hours?
Do you have hours for seniors?
How do I login?
How do I access my digital items?
What are your covid-19 policies for your employees? For customers?
Are you hiring? How do I apply? What are your employment policies?

A good ticket system will also have the ability to customize the ticket, the customer service agents, the customer records, and the other important parts of the system. For example, you may want to set up your own status items for each ticket. Open, assigned, active, hold, and complete are typical status types, but you may need another one.

The workflow must also be considered in a ticket system. How does a typical ticket flow through your business, and can the system replicate that flow.

Other important features of a ticket system include:

Support for multiple languages
Customer response to tickets, as well as customers can view status of their tickets
Uptime of system – service-level agreements
Tracking, such as number of open tickets, tickets on hold, and the like
Reporting metrics, such as wait time, ticket servicing time, and number of tickets handled by each agent
Ticket tagging and categorizing
Feedback loop for customer suggestions of product improvements
Ease of use for customers and agents
Notifications

A few of the most popular ticket management systems include:

Zendesk
Freshdesk or Freshservice by Freshworks
Zoho Desk
HubSpot Service Hub
Salesforce Service Cloud
LiveAgent

There are literally hundreds of technology options for any size business.

If you want to take your customer service to the next level or just want to get more organized, consider looking into these ticket systems.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “Managing Customer Service with Technology” is available now! Subscribe here: [link]

Do you have a lot of customer service inquiries in your business? If so, it can be a challenge to manage them all. Learn how to manage customer service with technology in our latest blog article here: [link]

Business Tip: Being responsive with customer service can make all the difference in your company’s success. Learn what tools can help you manage your customer service and streamline the process here! [link]

DID YOU KNOW… One way to keep your customer service costs low is to help users self-serve and solve their own issues when they can. Learn how to implement this in your company with our latest blog article here: [link]

Do you know which ticket systems are the most popular and what features to look for to help manage your customer service? Our latest blog article covers everything you need to look for to find the perfect system for your business! Click here for more: [link]

The most common solution to automating customer service inquiries is to implement a ticket management system, which is also called help desk software. Find out more about the technology that can help you manage your company’s customer service here: [link]

Zendesk, Zoho Desk, and Salesforce Service Cloud are just a few of the technologies that can help you manage your customer service better. Find the full list of options, as well as the important features to look for, in our latest blog article: [link]

Our latest blog article, “Managing Customer Service with Technology”, covers everything you need to know about how to implement technology to better manage your company’s customer service. Sign up for our newsletter to learn more: [link]

Fighting Cybersecurity Threats in Your Business

Fri, 19 Feb 2021 20:14:43 GMT

BizBoost News
Volume 10, Issue 18
For distribution 2/22/21; publication 2/25/21

Fighting Cybersecurity Threats in Your Business

If you keep any kind of digital information in your business, you have a chance of becoming a victim of a cybercrime. The odds have increased exponentially during the pandemic, with more cyberthreats and scams floating around than ever before. Here are some ways to reduce your chances of getting attacked.

Social Engineering

Social engineering is when thieves try to get your employees to provide confidential information via a phone call or email. You can reduce your risk here by developing procedures and training any employees that take customer phone calls for the business. Require them to ask for identifying information such as a pin or code, or simply prevent them from giving out any information over the phone.

Passwords

Passwords are terribly inconvenient but incredibly necessary. Almost everyone is guilty of using passwords that are simply too easy to guess. Here are some password tips:

Avoid using dictionary words, even if the syllables are broken up in the password.
Always use a combination of upper and lower case, and don’t just make the first letter uppercase which is too predictable.
Include special characters, and don’t just use the exclamation point.
Use separate passwords for everything, especially for banking apps, accounting apps, and social media apps which are frequently hacked.
Make your passwords at least 12 characters. More characters will be needed each year.

Receiving and Delivering Information

If you deliver or receive information, it should be done safely and securely. One way to do this is to use a customer portal such as Box or ShareFile, where the information is securely stored in the cloud. Another tool that to safeguard information delivery is encrypted email.

Anti-Virus

All computer users should have anti-virus software implemented and active on their devices. Company procedures should dictate the settings as well as the brand to use.

Spam Protection for Email

Anti-spam software is also necessary to protect the device from bad links in emails. Users should be trained to detect and avoid phishing emails.

Malware Protection

Malware can be installed on your computer without your knowledge and if you are not careful. To protect against these threats, avoid file-sharing when possible, be careful when visiting unknown websites, don’t download software that you don’t recognize, and be careful with links in emails.

You may also need to protect your website from malware attacks by installing a firewall or other preventative solutions.

Software Releases

Stay current with all of your software upgrades. Upgrades can patch vulnerabilities, so you are safer with each new upgrade you install.

Data in the Cloud

Make sure any data that you have in the cloud is behind an acceptably secure technology solution. Today, this generally means files are stored with AES 256-bit encryption. You can also look for SOC1 and SOC2 certifications.

Need to Know

There are many policies that need to be developed for employees with regard to data handling. One example is providing data access to employees on a need-to-know basis. For example, an operations manager does not need the password to the payroll system, but the payroll manager does.

Reducing Business Risk

These items above are the tip of the iceberg when it comes to having good data security practices in your business. Develop an excellent set of policies, train and monitor employees, and set a great example yourself when it comes to this growing threat to your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “Fighting Cybersecurity Threats in Your Business” is available now! Subscribe here: [link]

The odds of experiencing a cybersecurity crime have increased exponentially during the pandemic, with more cyberthreats and scams floating around than ever before. Our new blog article details ways to reduce your chances of getting attacked. Find out more here! [link]

Business Tip: Only provide data access to employees on a need-to-know basis. This will help strengthen your cybersecurity. Learn more great tips in our new blog article here! [link]

Have you heard of social engineering? It’s just one of the many cybersecurity threats your business may face. Find out how to combat social engineering and many other cybersecurity threats in our latest blog article: [link]

Cybercrimes are becoming more and more prevalent. There are many policies that need to be developed for employees with regard to data handling in order to keep your business protected. Find out more in our latest blog article here: [link]

If you keep any kind of digital information in your business, you have a chance of becoming a victim of a cybercrime. Find out more in our latest blog article here: [link]

Spam protection for email, malware protection, and keeping your software up-to-date are just a few of the ways to keep your business protected from cybercrimes. Click here to learn more! [link]

Do you know what steps to take to keep your company safe from cybersecurity threats? There may be areas unprotected that you’ve never even thought of before! Sign up for our newsletter to learn more: [link]

The Concept of Independence in Accounting

Fri, 19 Feb 2021 20:13:50 GMT

BizBoost News
Volume 10, Issue 17
For distribution 2/8/21; publication 2/11/21

The Concept of Independence in Accounting

Independence is a key concept in accounting, especially in the assurance or auditing area of accounting. Assurance services are services where a licensed CPA reviews an organization’s financial statements and accounting records and provides an opinion about them. This opinion takes the form of a report that can be shared with third parties such as banks and shareholders. Auditing services are one of many forms of assurance services.

Only a licensed CPA can provide assurance services; this is regulated by the states. A CPA who provides certain assurance services must be independent from the business that it is writing an opinion for. Essentially, independence means that the auditor must be able to do their work objectively and with integrity. And it goes farther. The auditor must not be perceived as having any kind of bias or connection with the business it is auditing. There must be no perception of any impropriety.

To this end, the auditor must not have a relationship with the company’s executives. A CPA cannot, for example, audit her brother’s company. A CPA cannot be an investor in the company and also be the auditor because of the financial relationship. The audit opinion must not be influenced in any way by a relationship between the auditor and anyone in the company. The CPA must be able to provide an honest, professional, and unbiased opinion when auditing financial statements.

Being independent also means the CPA must have a healthy dose of skepticism. A common phrase in the accounting profession is “Trust, but verify.”

Numerous rules abound to protect auditor independence. For example, an auditor cannot be paid on a contingent or commission basis. All practicing CPAs must complete ethics courses every few years, and these almost always include independence scenarios and case studies.

If you have any questions about independence, assurance, or auditing, please feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “The Concept of Independence in Accounting” is available now! Subscribe here: [link]

Independence is a key concept in accounting and especially in the assurance or auditing area of accounting. Learn more in our latest blog article: [link]

Business Tip: Only a licensed CPA can provide assurance services; this is regulated by the states. A CPA who provides certain assurance services must be independent from the business that it is writing an opinion for. Learn more here![link]

DID YOU KNOW… There are numerous rules to protect auditor independence. Learn more about the importance of independence in accounting with our latest blog article: [link]

Assurance services are services where a licensed CPA reviews an organization’s financial statements and accounting records and provides an opinion about them. This opinion takes the form of a report that can be shared with third parties such as banks. Auditing services are one of many forms of assurance services. Learn more about auditing services and the importance of having an independent auditor here: [link]

In our latest blog article, The Concept of Independence in Accounting, we explain what “independence” means in assurance services and the importance of an auditor’s independent status. Find out more here: [link]

DID YOU KNOW… Being independent also means the CPA must have a healthy dose of skepticism. A common phrase in the accounting profession is “Trust, but verify.” Find out more here! [link]

Sign up for our newsletter to learn all about the concept of independence in accounting and the important role it plays in delivering assurance services: [link]

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

Tue, 26 Jan 2021 14:22:07 GMT

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

The Consolidated Appropriations Act, 2021 (CAA 2021) became law on December 27, 2020, and among many other things, provided for a second round of potentially forgivable Paycheck Protection Program loans to small businesses that were financially impacted by the effects of the pandemic.

The Act not only provides funds and guidelines for a round two of PPP money; it also expands PPP round one in a number of ways. Here are a few of the highlights.

Changes to PPP Round 1 Loans

Existing borrowers with PPP loans can reapply for a loan or request a loan increase as long as they have not received forgiveness. This includes borrowers that returned all or part of their PPP loan or whose loan maximum has increased due to regulations implemented after receipt of their loan.

Businesses that have not been granted forgiveness can spend PPP money and apply for forgiveness on an expanded list of expenses, including:

Software, cloud computing, HR, and accounting
Property damage
Supplier costs
Essential contracts in force prior to loan
Worker protections, e.g. PPE
Payroll costs can include group insurance including group life, disability, vision, dental

They can now choose their covered period at any time between 8 and 24 weeks (previously it was 8 OR 24 weeks only).
There will be a simplified forgiveness application for loans under $150,000. However, do note that this is not the rumored rubber stamp: the backup paperwork and calculations are still required.
The SBA has until January 21, 2021 to establish the guidelines for the application process.

PPP Second Draw Loans

Additional PPP monies will be available to qualifying businesses, up to loan amounts of $2 million. The business must:

Employ 300 or fewer employees
Have used or plan to use the full amount of PPP1
Can prove a 25 percent drop in revenue in any quarter of 2020 compared to 2019

Businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives are eligible.

In round two, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year. Businesses with NAICS code 72 (Accommodation and Food Services) may receive loans of up to 3.5X average monthly payroll costs. The rules for forgiveness are the same as in round one.

Organizations not eligible for PPP2 include:

Businesses not in operation on Feb 15, 2020
Businesses that received a Shuttered Venue Operator Grant
Entities normally ineligible for SBA loans in general, except for nonprofits and religious organizations
Political organizations and lobbyists
Entities affiliated with entities in the People’s Republic of China
Registrants under the Foreign Agents Registration Act
Publicly traded companies

The entire program in extended to March 31, 2021.

There are also special provisions for these types of businesses:

Venues
Farmers and Ranchers
Housing Cooperatives
News Organizations
501(c)(6) and Destination Marketing Organizations
Businesses in bankruptcy proceedings

The disclosures have also gotten stronger, with specific provisions for collection of demographic information and required disclosures for leaders in government to publicize their receipt of PPP forgiveness as well as prohibition of them receiving PPP loans in the future.

The law gives SBA a deadline to act, which varies from 10-24 days depending on the section. The next course of action for businesses that want to apply for these funds is:

Continue gathering your documents,
Make your calculations,
Check with your accountant if you need help,
Select your SBA-approved bank, and
Wait for both
o The SBA guidance and
o Your bank to open the application portal

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act starts on page 2042 of the 5593-page bill in case you want to see for yourself. And if not, know we’re here as your tax law interpreter, so feel free to reach out anytime.

Ten Places to Look to Find More Profits

Tue, 26 Jan 2021 14:20:47 GMT

BizBoost News
Volume 10, Issue 16
For distribution 1/25/21; publication 1/27/21

Ten Places to Look to Find More Profits

A great way to start 2021 is to take a fresh look at your business finances. Many things changed in 2020, and if you are in the habit of spending on the same items year after year, it’s the perfect time to decide what is essential and what can go.

There are only a few ways to increase profits when you think about it in black and white terms. You can either raise revenues or cut costs. Let’s take a look at where we can potentially cut costs.

Publications

These expenses tend to be monthly or yearly, and we tend to just let them automatically renew time after time. But do we really need them? Take a look in your Dues and Subscriptions account to evaluate what you really need to stay informed, and cancel the rest.

Memberships

If you are a member of an organization or two, what benefits are you getting from your investment? Does it raise revenue for you? Do you use everything the membership offers? If not, it might need to go on the chopping block.

Memberships are especially tricky if the organization provides a local meeting component as a benefit and your state or county has been shut down. There’s a tradeoff right now between supporting the organization so that it’s still there when we can freely meet again and being responsible about your own business costs.

Office/Store Rent

With many employees working from home, the question has come up in many businesses about how much space they really need. As leases expire, consider how much space you really need. Some employees may love to work from home permanently, which frees up space.

Retail stores that have moved their business online may be able to cut back on customer-facing space but might need more inventory storage space. A restaurant that has successfully transitioned to pickup and delivery orders might be able to get by with a smaller seating area.

Software Apps

Are you paying for any technology applications that you are simply not using? This is a good place to look for cuts.

Some applications charge by number of contacts. Keeping your lists clean inside these apps will avoid increases and cut costs in some cases.

Office Supplies

Do you really still need things like staplers and scissors on everyone’s desk? If your business is going paperless, you can save a lot on office supplies.

Printing

Do you need to spend money on printing, or can the printed item be delivered electronically?

Shipping/Postage

While information can be delivered electronically, physical goods still need to be shipped. Make sure you have the best deal with your shipping vendors based on your volume. You may also need to consider building your shipping costs into the price of the product or add a shipping fee to the bill if you don’t already.

Marketing

A great way to increase profits is to become more intentional about your marketing costs. Are you able to measure what’s working and what isn’t? Or are you doing the same thing year after year?

Marketing has changed so much, even in the last few years. It might be time to implement digital marketing methods, which can be more cost-effective than older, outdated methods.

Labor

Make sure employees manage their time effectively by providing the right training and supervision. This should help to reduce labor expenses.

Telephone/Internet

Has your business changed? Do you need all those extra features you are paying for? Could you do without those extra lines? Would another phone plan save you money on long distance or international calls? Many telecommunications companies will often bargain with you or offer you a new deal just for checking in with them.

This gives you ten places to look to cut costs and correspondingly increase profits for 2021. If you need help reviewing your income statement, please reach out.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog article: “Ten Places to Look to Find More Profits” is available now! Subscribe here: [link]

Business Tip: Marketing has changed so much, even in the last few years. It might be time to implement digital marketing methods, which can be more cost-effective than older, outdated methods.

Learn more cost-saving tips for your business here! [link]

There are only a few ways to increase profits when you think about it in black and white terms. You can either raise revenues or cut costs. Find out 10 different ways to cut costs and correspondingly increase profits in your business with our latest blog article: [link]

DID YOU KNOW… A great way to increase profits is to become more intentional about your marketing costs. Are you able to measure what’s working and what isn’t? Or are you doing the same thing year after year? Learn more in our latest blog article:[link]

Publication subscriptions, memberships, and even software apps are just a few examples of costs you may be able to reduce. Find out more here: [link]

With many employees working from home, the question has come up in many businesses about how much space they really need. As leases expire, consider how much space you really need. This is a great way to cut costs and increase profit in your business. Find out more here! [link]

Has your business changed? Do you need all those extra expenses you are paying for? Sign up for our newsletter to learn what areas you may be able to trim and therefore increase your profits: [link]

Should Your Business Become Cash-Free?

Tue, 26 Jan 2021 14:19:48 GMT

BizBoost News
Volume 10, Issue 15
For distribution 1/11/21; publication 1/14/21

Should Your Business Become Cash-Free?

A cashless business is one that processes all cash transactions electronically. There is no paper or coin money taken or handled. While no one society has become 100 percent cashless yet, most organizations are moving in that direction.

A business can become cash-free by providing multiple electronic alternatives to payment. Credit cards are the most common electronic payment implementation. This option most likely includes MasterCard, Visa, Discover, and American Express. Some businesses also have a PayPal account and offer that method for payments. Vemno, owned by PayPal, is an efficient mobile alternative, but it is mostly used for consumer-to-consumer transactions. And there is also cryptocurrency.

Cashless businesses are more efficient, help to reduce crime, and have a better audit trail of transactions. Going cash-free also saves money and time spent counting the money, storing the money, safeguarding the money, protecting employees at risk of becoming theft victims, and physically going to the bank.

On the negative side, credit card companies charge fees to merchants, although these can now be passed to the customer in most states. Electronic transactions also require a higher level of technology, and privacy is reduced. And while security is an issue, all merchants that take credit cards must comply with PCI (Payment Card Industry) security standards and sign a document each year stating so.

If your clientele does not keep their money in a bank or if they are not able (or have chosen not) to have a credit card, you may need to rethink going cashless. About 20 percent of U.S. households are challenged when it comes to having access to checking and savings accounts. This had led to several state and local laws being passed in the U.S. prohibiting a business from going cashless. Nothing has been passed at the national level as of this writing, however the Payment Choice Act was introduced in both chambers in mid-2020.

The pandemic has accelerated the move to cashless with the desire for contactless transactions. Several countries are leading the way to becoming cash-free as an entire country, including Sweden, Finland, Norway, China, and South Korea. Sweden’s government has been the most aggressive, claiming they will become a 100 percent cashless society by 2023.

Is going cashless right for you? Meeting your clients’ needs is a prime consideration. At the very least, you can move to increase the percentage of electronic transactions and decrease the percentage of cash transactions when feasible. This measure will save time and money in and of itself.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: “Should Your Business Become Cash-Free?” is available now! Subscribe here: [link]

Is going cashless right for you? Many companies, and even whole countries, are considering the transition to functioning cash-free. Learn more in our latest blog article: [link]

Business Tip: A business can become cash-free by providing multiple electronic alternatives to payment. Credit cards are the most common electronic payment implementation. Learn more here: [link]

DID YOU KNOW… Cashless businesses are more efficient, help to reduce crime, and have a better audit trail of transactions. Learn more in our latest blog article: [link]

There are many societal advantages and disadvantages to becoming a cash-free business. Learn all about them in our latest blog article: [link]

The pandemic has accelerated the move to cashless with the desire for contactless transactions. Several countries are leading the way to becoming cash-free as an entire country, including Sweden, Finland, Norway, China, and South Korea. Find out whether your business should go cash-less here: [link]

Are you considering transitioning your business to be cash-free? There are many aspects to consider, from your customer’s situation to the state and local laws in place. Sign up for our newsletter to learn more: [link]

Wrapping Up 2020

Mon, 28 Dec 2020 13:25:38 GMT

BizBoost News
Volume 10, Issue 14
For distribution 12/28/20; publication 12/31/20

Wrapping Up 2020

Year-end is the perfect time to reflect on accomplishments achieved since January. It’s also an important time to put things into perspective as we turn the page and start a new year.

What We Learned

With so much change in 2020, the opportunities to learn have been abundant. Take a moment and contemplate the following:

What new skills did you learn this year that you have put to work in your business?
What topics did you become wiser about?
What situations have you learned to master?

Goals Met

If you set goals for 2020, which ones did you achieve? Because it was a volatile year, you may have achieved a lot of things that were not planned. Or you may have simply maintained status quo, which is an amazing accomplishment in its own right in 2020. Give yourself credit for all of that as well.

As we transition to 2021, set new goals to be achieved in your business and record the list so you can look back periodically to monitor your progress.

Gaining Perspective

The circumstances of the pandemic present a constant challenge to keep things in perspective. Our emotions are exacerbated when we feel threatened, whether it’s about our health or our freedom. This creates the polarization we’ve seen in the news and current events.

Gain perspective by asking yourself these questions:

What kind of business person do I want to be in 2021?
How do I see my business in five years?
What can my business contribute to its customers, employees, and other stakeholders?

Reflect, plan, and gain perspective as we usher in 2021. And have a Happy New Year!

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Wrapping Up 2020; Subscribe here: [link]

Now is the time to reflect on the accomplishments you achieved throughout 2020. This article can help! [link]

2020 was difficult. It’s important to ask yourself: What topics did you become wiser about? [link]

Now that 2020 is coming to a close, considering asking yourself: What situations have you learned to master? [link]

2020 was a rough year, and as it comes to a close, it’s important to consider your goals for 2021. [link]

As we approach 2021, it’s necessary to reflect, plan, and gain perspective. This article can help! [link]

: [link] As we get closer to 2021, it’s important to consider where you see your business in five years.

Wrapping Up 2020 -Sign up for our newsletter: [link]

The Power of Listening

Mon, 28 Dec 2020 13:24:01 GMT

BizBoost News
Volume 10, Issue 13
For distribution 12/14/20; publication 12/17/20

The Power of Listening

Now, more than ever before, the act of listening is important. Not only is it important to listen to someone, but to effectively listen to them. Sure, we all know that in order to understand individuals, to connect with them and understand their wants and needs, we need to be alert, focused, and mindful. After all, the power of listening—effective listening—will help you get more information from clients, increase their trust and commitment in you, and reduce conflict and misunderstanding.

Below, we’ve included more information on the power of listening, and tips on how to be a better listener.

What It Means To Listen

We don’t need to give you a textbook definition of listening; you already know what it means. However, it is necessary to point out that the act of listening and actually comprehending what a person is saying can lead to strong, healthy, and thriving relationships—all very important qualities in any type of relationships, specifically a business one.

If you don’t believe us, think about the last time you were having a conversation with someone and felt as if you weren’t being heard. How did that make you feel? How did that affect the relationship? Did it make you feel valued?

According to Dr. Carl Rogers, a psychologist, active listening is a specific communication skill. Giving free and undivided attention to a speaker through active listening is the most effective way to achieve individual change and group development.

Isn’t that the ultimate goal? Whether the relationship is professional or personal, don’t you want to establish a solid, mutual ground of respect? It’s the only way for both parties to succeed.

If your listening skills are in need of a little tune up, don’t worry—we’ve got you covered! We’ve put together a list of different ways to help you become a better listener.

Tips On Becoming A Better Listener

If you truly want to become a better listener, then consider implementing these tips into your daily life.

Understand The Benefits

First, it’s imperative to understand that listening to someone is beneficial to both the person doing the talking and you. Nothing bad or negative comes from listening to another person speak, but the complete opposite. Remember, if you thoroughly listen to an individual, it’s more likely that same individual will listen to you when it becomes your turn to speak. The partnership the two of you are hoping to grow can only be successful with mutual listening.

Make Eye Contact

Next, when someone is speaking to you, always make eye contact. This tactic not only shows respect, but it will also help you focus on the other person’s words, what he or she is saying and how they feel.

No Distractions

When sharing a conversation with someone, make sure there are no distractions. Obviously, this means you need to put down your phone and give the speaker your full attention. Don’t worry about what’s going on around you; don’t think about your next meeting or what you plan to have for lunch. Listen, engage, and show the person talking that you care.

Ask Questions

One of the best ways to show the speaker that you are really listening to them, is to ask them questions. Make sure you fully understand what they’re saying by verifying their wants, needs, and/or concerns with specific questions.

Remember, nothing bad comes from listening—only good. The next time someone is speaking, consider opening up your eyes, ears, and mind just a little bit more. In doing so, you will gain the full benefits of the power of listening.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: The Power of Listening Subscribe here: [link]

Are you a good listener? These tips can help you perfect the skill! [link]

Business Tip: The only way to become successful is to listen. Learn more here! [link]

One of the best business skills to perfect is the act of listening. Find out why it’s important to listen. [link]

When you listen to someone, do you make eye contact? You should! Get more great listening tips here. [link]

If you’re looking at your phone while someone is speaking to you, then you’re really not listening. Click here for more tips. [link]

: [link] The power of listening is real! What does it mean to be a good listener? Find out here!

__ Sign up for our newsletter: The Power of Listening [link]

The Personal Financial Satisfaction Index (PFSi)

Mon, 28 Dec 2020 13:22:43 GMT

BizBoost News
Volume 10, Issue 12
For distribution 11/30/20; publication 12/3/20

The Personal Financial Satisfaction Index (PFSi)

How happy are you with your financial situation right now? In other words, do you feel personal financial pleasure or pain when it comes to your financial standing?

That is what the Personal Financial Satisfaction Index strives to measure for the typical American.

The PFSi is a quarterly economic indicator created by the American Institute of CPAs. This specific economic indicator weighs a variety of economic factors to calculate the financial standing of a typical American. These financial standings are only computed at a high level.

The main agenda of the PFSi is to calculate the difference between two component subindexes: the Personal Financial Pleasure Index and the Personal Financial Pain Index. These two subindexes are each created of four, equally weighted proprietary and public factors, which ultimately measure the growth of assets and opportunities in the case of the Pleasure Index, as well as the erosion of assets and opportunities in the case of the Pain Index.

In other words, positive scores of the PFSi indicate that Americans are feeling personal financial pleasure. Negative scores, obviously, indicate that Americans are feeling personal financial pain. It might sound like a subjective emotional measure, but it’s not at all; it’s based on government statistics as well as proprietary AICPA data.

The PFSi has been mostly increasing from the third quarter of 2011 to the fourth quarter of 2019. Since then it has dropped dramatically. With the current pandemic still in place, unemployment and other economic factors have contributed to the drop in the index. You can use the score as a measure against your own financial security and for planning purposes.

Or reach out to us and we’ll be happy to answer any questions.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: The Personal Financial Satisfaction Index (PFSi) Subscribe here: [link]

Interested in learning more about the PFSi? Click here!: [link]

Business Tip: We break down everything you need to know about PFSi. Take a look. [link]

Familiar with PFSi? Click here to better understand a typical American’s financial satisfaction. [link]

The PFSi is an economic indicator that measures financial satisfaction: [link]

Everything you need to know about PFSi and more! [link]

The Personal Financial Satisfaction Index (PFSi) Sign up for our newsletter: [link]

Being Grateful in a Less-Than-Awesome Year

Mon, 23 Nov 2020 14:31:50 GMT

BizBoost News
Volume 10, Issue 11
For distribution 11/16/20; publication 11/19/20

Being Grateful in a Less-Than-Awesome Year

It goes without saying that 2020 has been quite the year—and it’s not even over yet! Of course, any one of us could easily come up with a long list of things to be ungrateful for, a negative list of every bad occurrence that has taken place since March due to the Coronavirus pandemic. In a sense, being sad or negative or depressed is simple. Being grateful is what’s really difficult, but we want to help you achieve the feat.

Below, we’ve put together different techniques to help you see that there are many things to be grateful for, both in our business and personal lives. This is a great time of year – just before the U.S. holiday of Thanksgiving – to stop and practice gratitude.

What Are You Grateful For?

The act of being grateful can lead to experiencing positive emotions. As a matter of fact, if you are experiencing negative emotions and don’t want to, the fastest way to “reset” your physiology is to start thinking of things you are grateful for.

Here are some ideas to help get you started:

Your Health

Are you healthy? Are you able to see, to smell, to breathe, to walk? Health comes in many various forms; the idea of being healthy can mean something entirely different to two people. Consider what being healthy means to you, and then, if you do think you have your health, try and be grateful for it.

One good thing about the pandemic is that most people are eating more healthful meals and less fast food, and they are feeling better with more energy. People are also watching their weight and even losing excess pounds, especially after some of the initial reports that overweight people were having a harder time fighting Covid-19 than slimmer people.

Friends and Family

Are you surrounded by loved ones? Now, more than ever before, it’s important to be grateful for people who are in your life. You may be facing hardships but think how much more difficult times would be if you were dealing with them by yourself. Be grateful for having someone in your life that you can lean on.

Work and Business

So many people have lost their jobs, their income, their sense of security. If you still have work or your business to keep you busy, focused, and earning a steady paycheck, be grateful. It’s a wonderful exercise to express your gratitude to your clients or boss by writing them a thank you note or leaving them a review on Google My Business, Yelp, their Facebook business page, or their LinkedIn profile as a recommendation.

Similarly, it’s the perfect time of year to ask your clients or boss to leave you a review on one of these digital assets.

Never Stop Being Grateful

Of course, there are plenty of other things to be grateful for in this world; everyone’s list will look different. Perhaps you’re grateful for a pet or something you’ve achieved. Maybe the fact that you have a special skillset or the ability to be patient and understanding during trying times gives you reason to smile.

That’s the thing about being grateful: there is nothing too big or too small to be grateful for; no right or wrong answer. And while it may feel more difficult this year compared to others, you can always find something when you look hard enough.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Being Grateful in a Less-Than-Awesome Year
Subscribe here: [link]

Though the task is difficult right now, it’s still important to find something in your life to be grateful for. Let us help! [link]

Business Tip: Need help finding things to be grateful for in your life. Click here! [link]

Despite all of the hardships of 2020, it’s beneficial to find things in your life to be grateful for. [link]

Being negative and sad will only add more stress to your life. Find things to be grateful for. [link]

Take a look around: You may find you have more things to be grateful for than you thought. Find out more here: [link]

What are you currently grateful for in your life? [link] Find out more here!

Being Grateful in a Less-Than-Awesome Year Sign up for our newsletter: [link]

The Importance of Customer Communication

Mon, 23 Nov 2020 14:29:33 GMT

BizBoost News
Volume 10, Issue 10
For distribution 11/2/20; publication 11/5/20

The Importance of Customer Communication

Regardless of the type of relationship—personal, professional, or even acquaintance—communication is key. Specifically, if you want to have a healthy relationship with any individual, then it’s important to communicate clearly and fully.

Communication is particularly necessary when it comes to customers and building a successful business. It’s even more important this year since many businesses have gone through so many changes. We’ve put together this article to not only detail the importance of customer communication, but also to provide some tips to help you achieve better customer communication.

Are You Communicating Properly?

Effective communication helps to ensure your product or service meets the customer’s needs and satisfaction. By meeting these needs and satisfaction, you are (hopefully) guaranteeing repeat business. Start by figuring out what your customers are thinking and what questions they might have about your business.

Congratulate yourself if you’ve sent emails or posted notices on your website that answer the following questions:

1.     Have your hours changed?
2.     Has your location changed?
3.     Can you handle drop-in service?

a. If so, is there a protocol? For example, do customers call a number when they get to your locked door? Will you be taking their temperature? Is a mask required?

4. Is your business by appointment only?

a. Then, how do customers make an appointment?b. Do you require a covid-19 test before an appointment can be made?

5.     Are there special accommodations for at-risk groups?
6.     Has your contact information changed? With people working at home, phone numbers may have changed.
7.     Have your services changed?
8.     Do you deliver?
9.     Do you offer curbside pick-up?

If any of this hasn’t been clear in the last year, it could be part of a reason why business dropped off. To get it back, communicate, communicate, communicate!

And this is just pandemic-related. You may have launched new products or services, changed prices, added staff, and implemented many more actions that customers should know about.

Tips on Effective Communicating

Here are some foundational reminders about communicating in business.

Connection

Communication starts with a connection. In order to give the customer what they want, you have to connect with them. If you are able to connect on a personal level, even better. Regardless, you need to convey to the customers that they—as well as their wants and needs—are important.

Listen

Listen to your customer—and listen well. Depending on the customer’s communication, you may have to ask very specific questions in order to get them to reveal what they want or need. However, intently listening to your customers will allow you to form a better relationship with them.

Not only that, but you can get some great ideas for how to improve or create new products and services so that you fulfill even more of your customers’ wants and needs.

Understand

Now that you’re connecting and listening to you customer, make sure you understand them. If you don’t understand what they’re saying, ask them to clarify. This isn’t a guessing game, but a two-sided relationship. In order to give the customer what they want or need, you have to understand what it is they are asking for.

Transparency

Be completely transparent with your customer. You cannot earn a customer’s trust or loyalty—or repeat business—if you aren’t one hundred precent honest with them. Tell the customer exactly what you are able to do for them; don’t promise something you can’t deliver.

Deliver

Make sure you can—and do—deliver exactly what your customer is expecting from you. If you promise to deliver something, whether it’s a service, product, or result, then you need to keep your word. In doing so, you will be laying the brickwork for a successful, long-term relationship.

Communication is one of—if not—the most important skill to have when it comes to pleasing your customers. After all, happy customers will come back.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: The Importance of Customer Communication

Subscribe here: [link]

Need to work on your communication skills? We can help! : [link]

Remember: If you don’t communicate effectively with your customer, then you can’t have a successful business. : [link]

[link] How do you communicate better with a customer? Step one is to form a connection. Learn more now.

Are you listening to your customers? If you don’t listen to them, you can’t communicate effectively. [link]

Want to work on your communication skills? Let us help! Get tips here! [link]

[link] If you have poor communication skills, your business will likely suffer.

The Importance of Customer Communication
Sign up for our newsletter: [link]

The 13-Week Cash Flow Forecast

Fri, 23 Oct 2020 15:29:52 GMT

BizBoost News
Volume 10, Issue 9
For distribution 10/19/20; publication 10/22/20

The 13-Week Cash Flow Forecast

One of the best tools to forecast cash requirements is the 13-week cash flow forecast. It can help a business owner predict what their cash balance will be 13 weeks in the future. It helps to answer whether there will be enough cash to cover payroll and bills for a particular week. If you’re having significant ups and downs in your cash balance, it’s the perfect tool to help gain clarity around your cash needs.

Thirteen weeks may sound like an odd length to select, but it’s the length of a calendar quarter. This is the length of a financial projection that is typically used when a business is in financial distress; however, it’s also useful when a company is going through some ups and downs or simply wants to get a better handle on its cash requirements.

The forecast computations start with entering cash receipts and cash disbursements into a spreadsheet. Start with actual spending and receipts for the first week, then use estimates for the remaining weeks. Include planned expenditures such as overhead, payroll, and loan payments. Add in inventory purchases. Project your receipts based on history or recent changes in your business.

Once you’ve completed your forecast, you can make changes and do what-if scenario planning. For example, if the forecast shows that you will run out of cash in week seven, you have some time to decide what you need to do to remedy the shortfall. Options might be:

Accelerate the collection of 30 percent of your receivables.
Dip into your line of credit to cover a portion the shortfall.
Furlough 10 percent of your workers.

Plug your selected scenario into the forecast to see how much that relieves your shortfall.

The benefits of creating a 13-week cash flow forecast are many. You can see what actions need to be taken and when to take them well ahead of time. You can also see how much of an action you need to take. For example, instead of furloughing 50 percent of your staff, you may only need to furlough 25 percent. Or instead of borrowing $50,000, you might only need $20,000.

The cash flow forecast can also save time when developing your annual budget. Budgets are especially useful when business conditions are volatile or when business owners need all the clarity they can get.

Try your hand creating a 13-week cash flow forecast for your business, or reach out to us for help any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: The 13-Week Cash Flow Forecast; Subscribe here: [link]

One of the best tools to forecast cash requirements is the 13-week cash flow forecast. Learn all about it here: [link]

If you’re having significant ups and downs in your cash balance, the 13-week cash flow forecast is the perfect tool to help gain clarity around your cash needs. Find out more here: [link]

The 13-week cash flow forecast helps to answer whether there will be enough cash to cover payroll and bills for a particular week. Get full details here: [link]

Interested in the 13-week cash flow forecast? Click here: [link]

The 13-week cash flow forecast can help a business owner predict what their cash balance will be 13 weeks in the future. Learn more here: [link]

The benefits of creating a 13-week cash flow forecast are many. Find out those benefits here: [link] Find out more here:

The 13-Week Cash Flow Forecast -- Sign up for our newsletter: [link]

Building a Continuity Plan for Your Business

Fri, 23 Oct 2020 15:27:37 GMT

BizBoost News
Volume 10, Issue 8
For distribution 10/5/20; publication 10/8/20

Building a Continuity Plan for Your Business

At the beginning of 2020, you might have thought that developing a business continuity plan was not a top priority. Or maybe you thought it was only for large businesses. Fast forward to today, and a business continuity plan has become an essential staple in business planning.

There are more business risks than ever before to consider that can affect business continuity. Businesses are being shuttered, reopened and shuttered again from the pandemic, fires, hurricanes and damage from riots, just to mention a few of the more common issues in this unusual year.

The biggest benefit of a business continuity plan is the process of developing it. It helps you think through the steps you should take if a business interruption occurs. If you have a disaster recovery plan – or even a few steps jotted down of what you’d do – then you have already started a portion of the process.

Here are some of the major pieces of a business continuity plan to consider developing for your business.

Roles and Responsibilities

In this section, all of the business stakeholders should be identified and listed. On a high level, questions like these should be answered:

What is each person’s role within the company, and how would that change if the business is interrupted?
What new skillsets should be acquired in the case of a disruption?

Potential Impacts to Your Business

This part of the continuity plan lists major scenarios where something could go wrong with your business. It should include things like weather events, fire, riots, theft, leadership interruptions, cash flow shortages, and the long-term impact of the pandemic. For each event, an analysis should be made as to how it will affect the business and what possible outcomes could occur. This part is also called a Business Impact Analysis.

Recovery Strategies

Once you’ve identified impacts, the next set of questions covers how to most effectively recover from them. These remedies might include seeking additional financing, selecting backup locations, checking IT department functionality, creating alternate supply chain and distribution sources, and identifying many more actions along these lines.

As we’ve seen this year, this is just as important to think through for small businesses as it is large businesses.

When owners and employees are not in the middle of an actual disaster, they can better map out a recovery strategy that’s optimal and cost-effective for the business.

Implementation

A good plan should be implemented through distribution, testing, and training. All stakeholders should read and understand the contents of the business continuity plan. The plan should be tested in drills and exercises when possible. Employees should be trained so they know their part and feel comfortable carrying it out while under high stress.

The long-term viability of your business is important, and it can be strengthened when you put a business continuity plan in place. If we can help, feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Building a Continuity Plan for Your Business

Subscribe here: [link]

The biggest benefit of a business continuity plan is the process of developing it. Learn more here! [link]

When building a continuity plan for your business, make sure to include things that could potentially go wrong. [link]

A good continuity plan should be implemented through distribution, testing, and training. [link]

Click here to learn some of the major pieces of a business continuity plan to consider developing for your business. [link]

A business continuity plan has become an essential staple in business planning. Learn how to create yours: [link]

There are more business risks than ever before to consider that can affect business continuity. Find out what they are here: [link] Find out more here!

Building a Continuity Plan for Your Business-- Sign up for our newsletter: [link]

Cool Tech Tools: Easy Ways to Create Video Graphics

Thu, 17 Sep 2020 17:34:00 GMT

BizBoost News
Volume 10, Issue 7
For distribution 9/21/20; publication 9/24/20

Cool Tech Tools: Easy Ways to Create Video Graphics

Video creation has gotten so easy that just about anyone can do it. You no longer need professionals. You don’t even need video editing software with the long learning curve and high price tag. All you need is an app and your imagination.

There are many reasons to create a video:

Web pages that include video rank higher than those that don’t have video.
People love to watch video; it’s more interesting than text.
Video is often the best way to educate people.
Your message comes more alive when you use more senses: sight and sound

The first step is to figure out what you want to say. Here are a number of video topic ideas for your business:

A customer service tip
Your company mission, vision, and values
Your company’s origin story
Why you’re in business
A product, event, or service promotion
A sale
An employee spotlight
A customer spotlight
A how-to
A deadline reminder
A new product or service announcement

The next thing you need is a rough script of what you want the video to say, as well as graphics you can use to illustrate your points.

The final thing you need is a video creation app. Animoto is a great example of an easy-to-use video creation app. Just open your browser and go to https://animoto.com/. There are free and paid plans to choose from.

With most video creation apps, you have hundreds of templates that can get your started fast. Choose the template that is closest to the type of message you want to start with. You can easily replace your text, graphics, and sound with your own items, or ones that the software provides.

Options besides Animoto include Adobe Spark, Magisto, and several others.

Don’t be afraid to try your hand at video creation. It’s an easy way to impress your customers.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Cool Tech Tools: Easy Ways to Create Video Graphics. Subscribe here: [link]

Want to find out how you can easily create your own marketing videos? Check out this blog post: [link]

Business Tip: Web pages that include video rank higher than those that don’t have video. [link]

Don’t be afraid to try your hand at video creation. It’s an easy way to impress your customers and more effective at conveying your words than written text. [link]

To get started with creating your own videos, you’ll need a topic, a script, graphics, and a video creation app, like Animoto! Find out more here: [link]

Nowadays, it’s easy to create videos. You don’t need to purchase expensive video editing software and commit your time to the huge learning curve. All you need is an easy-to-use video creation app! Find out more here: [link]

Want to try your hand at creating videos to market your business? We’ve got a few video topics to get you started and more! Check it out here: [link]

Cool Tech Tools: Easy Ways to Create Video Graphics.Sign up for our newsletter: [link]

What to Do When an Employee Is Terminated

Thu, 17 Sep 2020 17:28:54 GMT

BizBoost News
Volume 10, Issue 6
For distribution 9/7/20; publication 9/10/20

What to Do When an Employee Is Terminated

Every company should have a strict process to follow when an employee leaves the company, no matter what type of termination it is – voluntary or involuntary. Here’s a checklist you can use to compare to your own process so that you can either confirm you’re on the right track or add some ideas to improve your current methods.

1. Collect the resignation letter.

While so many things are remote these days, you MUST get the employee’s resignation letter in writing and signed by them. If they don’t supply one, create a form they can sign that includes the reason for termination.

If you initiated the termination, have the employee sign the notice of dismissal.

This is not only important for general human relations records, it’s also important this year for any Paycheck Protection Program forgiveness documentation if the employee turned down a hire-back request. There may also be a requirement to submit the paperwork to your state’s unemployment office.

2. Handle legal and benefits issues.

a. Collect any company advances owed by the employee.

b. Ask the employee if they have any final expense reports to file.

c. Remind the employee that certain legal requirements, such as confidentiality clauses and noncompete agreements must be upheld after employment.

d. Review insurance options such as COBRA.

e. Let the employee know how to access their 401(k) and other benefit plans.

3. Update the payroll system and cut the final paycheck.

Compute PTO and vacation balances due the employee. Calculate severance pay. Cut the final paycheck, incorporating those items.

Review the paycheck amounts with the employee, and ask them for a forwarding address.

4. Collect company property.

The employee should turn over their computer equipment, including laptops, monitors, mice, keyboards, PCs, Macs, phones, beepers, printers, drives, and scanners. Don’t forget to ask for keys, business cards, name badges, security badges, gate and garage door openers, uniforms, and tools. Oh, and company cars or trucks.

5. Revoke computer access.

Any user accounts held in the employee’s name should be revoked. Many passwords may need to be changed. Their email address should either be forwarded to someone else who can answer the emails, updated with an autoresponder, or revoked altogether.

Voice mail and their phone extension should also be re-routed. Take the employee’s name off of any internal distribution list and remove them from the About page of your website.

6. Hold an exit interview.

The business owner should hold an exit interview with the employee if they are leaving voluntarily. Ask questions such as these:

a.      Why did you decide to start searching for a new job?

b.     Was there anything we could have done to keep you employed here?

c.      If you could change one thing about your job, what would it be?

d.     Could you describe your relationship with your direct supervisor?

e.      Would you consider working here again?

7. Communicate this change to your staff and customers.

Let your staff know immediately after the employee leaves that they will not be coming back. Don’t go into detail about the termination; that information is private.

If the employee was involuntarily terminated, assure your staff that their jobs are safe (if they are) so they don’t ruminate or spread false rumors.

If the employee worked with customers, each customer should be notified and given the name of the new staff member that will be handling their issues.

Follow these steps to protect your company when an employee is terminated.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: What to Do When an Employee Is Terminated. Subscribe here: [link]

Do you have procedures in place for when an employee leaves your company? Here’s a quick checklist to keep your company protected when an employee is terminated: [link]

Business Tip: When an employee leaves your company (whether by their choice or yours), it’s CRUCIAL to get their resignation letter in writing with their signature. [link]

Let your staff know immediately after an employee leaves that they will not be coming back, but don’t go into detail about the termination. That information is private. [link]

Once an employee leaves your company, remember to take the employee’s name off of any internal distribution list and remove them from the About page of your website. [link]

Collecting company property and handling legal and benefits issues are just a few of the steps that need to be done when an employee is terminated from your company. Here’s a quick employee termination checklist to help you stay organized: [link]

What steps do you take when an employee leaves your company? Do you have a strict process in place? If you don’t, here’s a checklist of things you need to do when an employee is terminated: [link]

What to Do When an Employee Is Terminated.Sign up for our newsletter: [link]

Six Fun Ideas to Bring into Your Marketing

Mon, 10 Aug 2020 13:44:38 GMT

BizBoost News
Volume 10, Issue 5
For distribution 8/24/20; publication 8/27/20

Six Fun Ideas to Bring into Your Marketing

The purpose of marketing is, in part, about creating relationships with customers and prospects. While traditional advertising is a standard way of letting prospects know more about you, it’s not always the most creative way to connect.

To spice up your marketing, let’s explore six unusual ways to connect with customers.

1- Celebrate an obscure or fun holiday.

For example, August 27 is National Just Because Day. It’s a day to do random things, which can be pretty easily tied to whatever your service or product is.

You can do something as small as send an email or as big as hosting a live event on the holiday you choose.

2- Feature a customer or staff member.

A great way for customers to get to know your team and for your team to get to know your customers is to feature them in a short writeup that you post or send out.

Make this fun by sharing things like favorite ice cream, activity they would love to do, country they want to visit most, most fun responsibility they have at work, favorite purchase from you, and more.

3- Highlight community work.

Does your organization have a favorite charity? If so, share experiences with your customers. Many customers value and prefer to support businesses that make community contributions.

Go as far as holding a volunteer day or do as little as a writeup for donations in your newsletter.

4- Take a survey.

When is the last time you’ve been asked a “deep” question? Send a survey that asks your colleagues and customers a question like what inspires them. Then share the results, with their permission, of course.

This type of activity can lead to meaningful conversations and a deeper connection with your customers. It may also provide great insight into how you can connect with what’s important to your clients.

5- Provide a gift guide.

Is it close to Christmas or another holiday where gifts are exchanged? If so, your customer might benefit from a gift guide you can put together.

You don’t have to own a retail store to benefit from this idea. Service organizations can provide gift certificate and other ideas in their gift guides. And you don’t always have to list only your own items. Add your customers’ and suppliers’ items and make it one big “business family” affair.

6- Tell people a story.

Do you remember your first sale? Write a story about your first sale, the first day you opened your new location, your first hire, or another fun business milestone.

People love hearing stories about how others got started. Don’t be so private that you miss out on this wonderful way to connect with clients.

Try these six fresh marketing ideas to create a meaningful connection with your customers and prospects, and watch your relationships blossom.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Six Fun Ideas to Bring into Your Marketing. Subscribe here: [link]

Want to learn how to spice up your business marketing? Check out our latest blog post for some unusual ideas: [link]

Business Tip: A great way for customers to get to know your team and for your team to get to know your customers is to feature them in a short writeup that you post or send out.[link]

Have you tried surveying your customers and colleagues to spice up your marketing? It could provide great insight into how you can connect with what’s important to your clients. [link]

Here’s a great way to market your services: share a story about how you first got started! Sharing your “fun firsts” is a great way to connect with clients and prospects. [link]

Traditional advertising may be the standard way of marketing, but it’s definitely not the most creative way to connect.Check out some of these fun and unusual marketing ideas to help you connect with your customers and prospects: [link]

Looking for new and creative ways to market your business and services? Our latest blog post has some fun ideas. Take a look: [link]

Six Fun Ideas to Bring into Your Marketing.Sign up for our newsletter: [link]

Watch Out for These Five Common Accounts Payable Errors

Mon, 10 Aug 2020 13:42:48 GMT

BizBoost News
Volume 10, Issue 4
For distribution 8/10/20; publication 8/13/20

Watch Out for These Five Common Accounts Payable Errors

Paying bills is never fun, but paying bills you shouldn’t pay in the first place is even worse. There are many risks that can part a small business owner with their hard-earned cash, and here are five to watch out for when it comes to your bill-paying process.

1- Fraudulent invoices

Some companies will send marketing documents disguised as invoices to businesses. You may have to read the fine print to notice it’s not really an invoice. In some cases, it’s simply outright fraud, trying to get you to pay something that is not owed.

Many times, these invoices look official, similar to legal filing requirements, but don’t be fooled. Examination of the fine print can save you a lot of money.

Set up procedures to catch these types of invoices. Managers should be careful not to approve these invoices for payment. Bookkeepers should be trained to question their supervisors about these invoices.

2- Item(s) not received

Three-way matching can prevent paying an invoice for which the goods were never received. Put into place a couple of procedures to prevent this accounts-payable error:

Have warehouse staff match the shipping receipt to what’s in the shipment when it arrives.
Have accounts payable staff match the marked-up shipping receipt to the invoice when it comes in. If the invoice shows that more items were billed for than received, a call to the vendor to correct the invoice is in order. The invoice amount should be adjusted on the books and a check can be cut for the reduced amount.

3- Wrong amount

Sometimes the wrong price can be listed on the invoice. If this happens, there may have been a misunderstanding during the sales process. A call to the vendor is needed in this case as well so that a corrected invoice can be issued.

4- Math error

This hardly happens in these days of computers, but it can. All invoices should be reviewed for reasonableness. If it doesn’t make sense that something should cost so much, it probably shouldn’t. In rare cases, a price may have been entered wrong or a computer bug could have occurred.

Spot-checking the invoice’s math can save money if an error has been made.

5- Duplicate invoice

This happens way too often. We may get an emailed invoice; then the same invoice comes in the mail. We need procedures in place to keep it from being paid twice.

Many accounting systems do this automatically, but if one character is off related to vendor name, the system could break down. Review a list of disbursements monthly to make sure payments don’t get duplicated.

Procedures are the answer to reducing accounts payable errors and making sure you pay only the invoices that are truly due.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Watch Out for These Five Common Accounts Payable Errors. Subscribe here: [link]

Have you ever paid a bill you shouldn’t have paid in the first place? It’s an awful feeling. Here are five to watch out for when it comes to your bill-paying process: [link]

Business Tip: Set up procedures to catch fraudulent invoices. Be sure to look carefully at the fine print. [link]

Have you ever paid for goods that you realized you never received? Three-way matching can prevent this.Read more about three-way matching and other ways to prevent common accounts payable errors here: [link]

Putting effective procedures in place is the answer to reducing accounts payable errors and making sure you pay only the invoices that are truly due. [link]

Here are five risks to watch out for when it comes to your business’s bill-paying process. Find out more here: [link]

Whether you’re a small business owner who has fallen victim to an accounts payable (A/P) error that cost you some of your hard-earned cash or a small business owner who just wants to prevent bill-paying errors from ever happening, here are five common A/P errors to look out for: [link]

Watch Out for These Five Common Accounts Payable Errors.Sign up for our newsletter: [link]

Five Expenses to Cut During Tough Times

Tue, 21 Jul 2020 15:11:53 GMT

BizBoost News
Volume 10, Issue 3
For distribution 7/27/20; publication 7/30/20

Five Expenses to Cut During Tough Times

If revenue hasn’t come back as fast as you expected it to, it may be time to review your budget and determine if some planned expenses can be cut. Here are five places to look to do just that.

1- Travel

Since most events have been moved online or cancelled altogether, you can likely redirect any money you’ve budgeted for travel this year to other more urgent expenses. And if you have prepaid these items, you may be able to get a refund. Hotels have flexible refunds up to the date of the stay unless you took a prepaid deal. And airlines have begrudgingly provided refunds, although in some cases, it did take time to get them.

Now that so many employees are familiar with Zoom and other videoconferencing tools, you may want to rethink any future travel requirements that could easily be accomplished virtually with a much lower budget.

2- Training

While it’s never a good idea to cut training, there may be ways to deliver it more affordably. You may be able to purchase subscriptions to online courses that include an “all-you-can-eat” component to them. A good example is Lynda.com, now owned by LinkedIn.

Any unnecessary training that can be delayed is another way to free up funds.

3- Dues and Subscriptions

If money is tight, evaluating your memberships is one area where you may be able to free up money. Especially since many in-person events have been cancelled, this might be a good time cancel any renewals you are not able to fully utilize.

Subscriptions are also something you can review. Can any of these be cancelled to free up cash? You can always re-subscribe when things get better.

4- Employee Perks

If you provide your employees with benefits and times are extremely lean, cutting them is an option to keep from laying off workers. Some of the options might be:

Eliminating perks like movie day, free car washes, or onsite chair massages
Stopping coverage of paid volunteer hours
Cutting education expenses if you are paying college tuition for some employees
Cancelling employees’ memberships and subscriptions as described above
Slashing training budgets as described above
Converting event attendance and sales meetings to online versions
Disallowing overtime work
Holding off on employee bonuses
Reducing vacation or holiday pay
Cutting down on health care options such as vision and dental plans
Reducing 401(k) matches on a temporary basis (watch out for plan requirements, though)
Cutting regular hours

All of these are steps you can take to avoid having to reduce your workforce.

5- Layoffs

One painful place to look for more cash is your workforce. If work has slowed due to demand, you can raise cash by furloughing or laying off workers. Unfortunately, many businesses have already had to do this.

By looking deeply at all of your business expenses, you can find places to cut spending so that you will be in a better position for the future.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Five Expenses to Cut During Tough Times. Subscribe here: [link]

Are you looking for places where you can cut spending and expenses during these uncertain times? Check out our latest blog post for some ideas: [link]

Business Tip: It’s usually not a good idea to cut training, but any unnecessary training that can be delayed is another way to free up funds if needed. [link]

It’s likely that your travel plans and any events you were planning to attend this year have been cancelled. It may be a good idea to redirect any money you’ve budgeted for travel this year to other more urgent expenses. [link]

If you provide your employees with benefits and times are extremely lean, cutting them is an option to keep from laying off workers. [link]

If your revenue isn’t looking as great as you expected during these tough times, it may be time to look into your budget and find areas where you can cut expenses. Here are a couple of expenses to consider cutting: [link]

Is money tight? Here are a few places where you can reduce expenses during these tough times: [link]

Five Expenses to Cut During Tough Times.Sign up for our newsletter: [link]

How to Reduce Stress Around Money

Tue, 21 Jul 2020 15:07:36 GMT

BizBoost News
Volume 10, Issue 2
For distribution 7/13/20; publication 7/16/20

How to Reduce Stress Around Money

Many families and small business owners have seen decreases in income over the last several months. Money struggles can cause us to experience stress and worry, and none of us need that right now. Instead we need to boost our immune systems and decrease stress.

Here are some tips on how we can take back control of our finances and reduce our stress around money.

1- Assess your situation.

Take an inventory of your bank accounts, credit cards, and other financial accounts. This helps you to see the entire picture. You can be financially healthy in different ways. For example, you might be low on income coming in but if you have healthy savings or plenty of assets, you might be just fine.

2- Track your spending.

When you can see where the money is going, you can make good decisions about what changes you need to make. Use tracking software like Quicken®or simply a spreadsheet so you can see how much you really need for things like the rent or mortgage, food, utilities, and other necessities.

3- Make any changes that you need to.

If you have more expenses than income, here are several ways to get back in balance:

Cut any unnecessary spending. For example, trade the expensive $100+ cable bill for a $15 Netflix subscription, at least for a while.
File your taxes early, especially if you have a refund coming.
Avoid temptation spending if you don’t have enough for the basics. Remember what’s important and find the will to curb impulses.
Sell some of the items you own that you no longer need to raise money.
Get a second job.
Get support from local nonprofits that can help you if you qualify.
If you must, dip into your savings or 401(k).
Ask family members to help.

4- Build a budget and stick with it.

Making a plan helps some people reduce their stress a great deal. They feel good that they now have goals and can develop new habits that will work for their lifestyle.

In your software or spreadsheet, commit to monthly spending limits for each major category: housing and utilities, food, transportation, clothing, entertainment, savings, paying off debt, and other.

Each month, track how you did by comparing your actual spending with your planned spending. Give yourself a grade on how you did, and either reward yourself or make the changes you need to.

5- Pay off debt.

If you have debt, make a plan to pay it off systematically. Here are some ways you can speed that up:

Pay down the debt that has the highest interest rates. You might even be able to consolidate and refinance your debt to a lower rate.
Make a payment every single month, even if it’s small.
See a credit counselor for more ideas on how to get out of debt faster.

6- Build a cushion for the future.

If your spending and income is balanced, but you don’t have a savings cushion, that can also be stressful. You need a safety net to fall back on for times just like these.

Decide on an amount that you can put away for a “rainy day” fund, and stick to it. It’s also never too early to start saving for your retirement years. The younger you start, the more your money will grow into a significant nest egg, providing comfort and flexibility in your final years.

7- Identify any other stressors related to money.

Perhaps a relative constantly asks you for money, and this causes you stress. In this case, you may have to make a “tough love” decision to reduce your stress while maintaining family relationships. These are very personal, individual decisions that include factors far beyond finance. But if they are causing stress, some kind of action should be taken.

8- Make your accounts work for you.

If possible, select credit cards that give cash back, miles, or other perks. Keep you bank balance high enough so that you don’t get charged a monthly fee, and try to get an account that pays interest. You won’t get rich from these things, but they are fun perks that help you save.

9- Invest wisely so you can sleep at night no matter what happens.

Understand your risk tolerance level when it comes to investments, and avoid investments that are too risky. You’ll sleep better at night knowing your money is safe.

Hopefully, these tips will help you decrease your money stress and improve your control over your finances.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Reduce Stress Around Money. Subscribe here: [link]

Are your finances stressing you out more than usual? Check out these tips on reducing stress around money: [link]

Business Tip: If you have debt, make a plan to pay it off systematically. [link]

Stressed about money? It’s a good idea to take a step back and assess your situation so that you can see the big picture. Just because one bank account is low doesn’t mean you’re ready to declare bankruptcy. [link]

Making a plan can help some people reduce their stress a great deal. They feel good that they now have goals and can develop new habits that will work for their lifestyle. [link]

If you’re stressed about money, here are some tips on how you can regain control and reduce stress over your finances: [link]

Are your finances spiraling out of control—and not in a good way? If you’re stressing out about money, check out our latest blog post on how to reduce stress around money! Check it out here: [link]

How to Reduce Stress Around Money. Sign up for our newsletter: [link]

3 Essential Metrics for a Smarter Marketing Spend

Tue, 21 Jul 2020 15:06:00 GMT

BizBoost News
Volume 10, Issue 1
For distribution 6/29/20; publication 7/2/20

3 Essential Metrics for a Smarter Marketing Spend

The only way to get smarter about how to invest your marketing dollars is to document and measure what’s happening now in your business. What you’ve measured, you can then improve.

Marketing Spend

The first step to measuring what you spend on marketing is to aggregate all of the costs. They may be in one account or several. Some of the places to look for marketing expenses include:

Advertising – for online or print ads, trade shows, sponsorships, and other advertising costs
Dues and subscriptions – for membership fees to networking and professional associations
Education – for marketing training
Marketing – for obvious reasons
Office supplies – for graphics subscriptions and fees
Payroll, salaries, and wages – for allocation of employee time spent on marketing projects
Printing and postage – for flyers and direct mail
Professional fees – for marketing consultants, coaches, designers, and writers
Software/Technology – for marketing software and apps
Travel – for trade show or conference attendance

Once you have aggregated all of these costs, you’ll have a good idea of what you’re spending on marketing and you can calculate the first metric, marketing spend. The formula is

Total marketing costs / total gross revenue = Marketing spend

This gives you a percentage.

Most companies spend five to ten percent on marketing. Higher growth companies will spend close to ten percent, and stable growth or slow growth companies will spend close to five percent. Large companies will spend more, from nine to 12 percent of gross revenues, than small companies.

CAC – Cost to Acquire Customer

Probably the most important metric for marketing is how much it costs on average to acquire one customer. To compute this, count the number of new customers for any period of time, and use this number in the following formula:

Total marketing costs / number of new customers = CAC

A more granular version of CAC is CPA, cost per acquisition. Unlike CAC, CPA is measured by campaign or marketing channel, or the source of how the customer was acquired. Example marketing channels include email marketing, social media, and paid ads, to name a few.

Revenue per Customer

Revenue per customer is a good measure in many companies. It can tell you how much, on average, a customer will spend at your company over a period of time, adding up all of the orders, projects, visits, or engagements for that customer. The formula is simple:

Total revenue for a period / total number of customers for the same period = Revenue per customer

A similar metric that’s valuable is how much a customer will spend at your company in their lifetime. That’s called CLV or customer lifetime value. Use the same formula above but compute it based on the longest period of time you have records for.

When you can compare revenue per customer or CLV with CAC, you can determine how much you can afford to spend to acquire new clients.

Let us know if we can help you calculate these metrics so you can become wiser about how to invest your marketing dollars.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 3 Essential Metrics for a Smarter Marketing Spend. Subscribe here: [link]

Do you know the three metrics required to smarten your marketing spend? Find out here: [link]

Business Tip: The most important metric for marketing is how much it costs on average to acquire one customer. [link]

Find out what you’re spending on marketing by dividing total marketing costs over the total gross revenue. [link]

Get smarter about your marketing spend by documenting and measuring what’s happening now in your business. [link]

Customer acquisition cost, revenue per customer, and customer lifetime value are all important metrics when it comes to improving your marketing spend. Find out more here: [link]

Most companies spend five to ten percent on marketing. How much do you spend? Find out how you can calculate your marketing spend here: [link]

3 Essential Metrics for a Smarter Marketing Spend.Sign up for our newsletter: [link]

How Liquid Is Your Business?

Mon, 22 Jun 2020 13:43:09 GMT

BizBoost News
Volume 9, Issue 26
For distribution 6/15/20; publication 6/18/20

How Liquid Is Your Business?

Liquidity in business has nothing to do with water, milk, or juice! It describes how quickly you can sell an asset and convert it into cash. Cash is the most liquid asset of all. Real estate, in contrast, is not quite as liquid because it could take months to sell it to a new owner.

Liquidity is important to all businesses. It affects your credit score and how much you can borrow. It’s a measure of whether you can pay your bills on time. It’s also one of many measures of the overall financial health of your business.

If your business sells items that take a long time to produce, liquidity can be extremely challenging and should be carefully managed. Examples include farms, wineries, breweries, automobile manufacturers, and biotech researchers.

Liquidity Ratios

A couple of financial metrics can quantify your business’s liquidity. The current ratio is computed as follows:

Current Ratio = Current Assets / Current Liabilities

The largest components of current assets include cash, cash equivalents, accounts receivable, and any other asset that is expected to be converted to cash within one year. The largest components of current liabilities include credit card balances, accounts payable, bills due, interest payable, and the amount of any loan due within one year. You can find both current assets and current liabilities on your balance sheet.

Companies with a current ratio of less than 2:1 are considered less liquid, while companies with a current ratio of more than 2:1 are more liquid. However, current ratio values and whether they are “good” or “bad” vary by industry, so before you panic, check out your industry benchmarks.

Another measure of liquidity is the quick ratio. It measures how equipped a business is to meet its short-term obligations by taking its most liquid assets, cash equivalents, and using them to pay down current debt. Its formula is:

Quick Ratio = (Cash + Cash Equivalents + A/R) / Current Liabilities

This ratio’s value should typically be 1:1.

Emergency Fund

A good common-sense measure you can use to stay on top of your business’s liquidity is to build a healthy emergency fund. To calculate how much you need, determine how much you typically spend each month. You can get that number by reviewing a bank statement and summing all of the withdrawals including checks paid and online withdrawals. Do this for each bank account you have and include other accounts such as PayPal if you use them for disbursements.

This should give you your total spend per month. Go back a few months to calculate an average spend per month. The farther you go back, the more accurate your average will be, especially if you have a lot of large annual payments throughout the year.

Now that you have your average spend per month, your emergency fund should be a multiple of that spend. Three months’ worth should be the minimum amount in your emergency fund. If you spend $50,000 per month on average, your emergency fund should be $150,000 at a minimum.

An emergency fund will not only make your business more liquid; it will protect you if disaster strikes. According to FEMA, 90 percent of small businesses that experience a disaster will fail within a year unless they can resume operations within five days. Having an emergency fund will increase the odds of your business continuing in spite of any hardship that may occur.

If you have questions for us about your business’s liquidity or starting an emergency fund, please feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How Liquid Is Your Business? Subscribe here: [link]

Do you know how quickly you can sell your business and convert it into cash? Find out why liquidity is important for your business: [link]

Business Tip: A good common-sense measure you can use to stay on top of your business’s liquidity is to build a healthy emergency fund. [link]

Companies with a current ratio of less than 2:1 are considered less liquid, while companies with a current ratio of more than 2:1 are more liquid. However, “good” and “bad” current ratios will vary among different industries. [link]

The quick ratio measures how equipped a business is to meet its short-term obligations by taking its most liquid assets, cash equivalents and using them to pay down current debt. [link]

Three months’ worth of your monthly average spend should be the minimum amount in your emergency fund. Find out more here: [link]

Did you know that 90 percent of small businesses that experience a disaster will fail within a year unless they can resume operations within five days? (Source: FEMA) That’s why it’s important to have an emergency fund! Find out more: [link]

How Liquid Is Your Business? Sign up for our newsletter: [link]

18 Small Business Opportunities in 2020

Mon, 22 Jun 2020 13:38:23 GMT

BizBoost News
Volume 9, Issue 25
For distribution 6/1/20; publication 6/4/20

18 Small Business Opportunities in 2020

Deciding on the kind of business you want to start is a very big decision. Some require specialized skills that either the owner or employees will need. Others require a substantial initial capital outlay. In any case, it’s always a good idea to consider the health of the industry you’ll be entering in.

While we are not giving any kind of investment advice in this article, we thought it’d be fun to list the business ideas that will be recession-proof in 2020, many of which were also fast-growing in 2019. They are not in any particular order.

1. Bicycle shops

Demand for bikes ramped up this year when people started staying at home due to shelter-in-place orders. They saw the need to exercise close to home, and a bike is the perfect accessory to get people out of the house safely.

2. Building services

This group includes businesses that provide services like office and home cleaning, landscaping, and pest control. New demands in cleaning will continue for some time.

3. Software development

Businesses with skilled developers are in demand as other businesses look to automate more and more of their processes. Workers with skills in artificial intelligence and virtual reality are in very high demand. In 2020, we added a huge demand for video conferencing tools, and other tech tools we need to work from home.

4. Online publishers

While the traditional print media such as book publishers and newspapers are declining in growth, online publishers are thriving. This category includes bloggers as well as the internet stars on YouTube that are making great money through online ads and product endorsements. The fast pace of the news in 2020 has simply accelerated this trend.

5. Building finishers

This category includes construction companies that provide drywall, painting, and flooring to finish out a building or house. Th need will continue in 2020 as offices, shops, and other businesses remodel to meet social distancing and other safety rules.

6. Outpatient care

An alternative to going to the hospital emergency room, these care facilities are growing fast. For patients, they are less hassle than making an appointment with a doctor and far less expensive than ER bills. Once tests and treatments for COVID-19 become universal, these places will become good alternative for people with mild symptoms.

7. Administrative services

There’s a growing need for businesses that need additional administrative support beyond what employees can provide. Virtual assistants are included in this category as well as staffing companies that provide temporary clerical workers onsite.

8. Physicians

If you’ve ever been in a doctor’s office waiting room full of people, you know that this area is in demand. This include offices of physicians of all specialties.

9. Professional drivers

Professional drivers fall into two categories: truck drivers and delivery/taxi services. The demand for truck drivers is always increasing as online orders and ecommerce steadily grows. Many of these drivers are independent and own their own rigs as well as their own businesses.

Uber, Lyft, GrubHub, and DoorDash, to name a few, have increased the demand for professional drivers who can deliver food, medicine, or people to where they need to go.

10. Data processing

The demand for data hosting, server farms, and data processing continues to grow as our appetite for technology increases.

11. Warehousing and storage

Places like self-storage facilities will be in demand for a couple of reasons. Families have more stuff than they have room for. And as families continue to be mobile, they will need temporary storage space. All you have to do is look on your street at all the cars that don’t fit in their garages to see the demand in this type of business.

On the commercial side, increased ecommerce demand and the need for pickup and delivery services has increased the need for warehouses for businesses in the distribution space.

12. Construction

In most places, construction is booming, so there is a demand for general contractors, subcontractors, architects, engineers, and businesses that support construction.

Architects should be busy re-designing spaces, such as offices, restaurants, nursing homes, day care centers, and jails, to name a few, to keep people safer.

13. Medical and diagnostic laboratories

Even before COVID-19 came on the scene, this type of business was growing fast for several reasons beyond standard medical test ordered by doctors. People are getting DNA tests on their own, and nutritionists are doing more testing as people realize diet is a huge factor in health and personal energy.

Now that COVID-19 diagnosis and treatment require a variety of tests, these labs will be busy for a long time in the future.

14. Ecommerce wholesalers

There is a growing number of people who sell items on ecommerce platforms such as eBay and Amazon. While a few source these items through agreements with manufacturers, many visit flea markets, donation centers, and resell shops to make their purchases and repurpose the items.

Smart wholesalers that have their systems set up can help brick-and-mortar shops without an ecommerce presence sell their items while they are shuttered.

15. Professional services

Fields that are fastest-growing include technology and marketing consultants. An interesting new type of security consultant is one that trains groups on how to deal with violence in the workplace and schools.

Attorneys are busy helping individuals update their estate plans and will likely be busy with divorce filings after COVID-19 has let up some. Accountants have new laws to communicate to their clients, and many small businesses want their books caught up now.

16. Educational services

This broad group include elementary and secondary schools and junior colleges. It also includes adult career education, including businesses that teach trades skills, computer skills, and business skills.

Companies that provide an online component to learning will be in demand for quite a while.

17. Real estate agents

Competitive, yes. But the average home sells twice as fast as it did eight years ago, so the number of transactions have doubled, increasing demand.

18. Personal services

While a broad category, the areas seeing growth include personal trainers, personal nutritionists, and wedding planners, to name a few.

If your business falls into one of these categories, congratulations. If you’re considering starting a business and you have the skills needed to start one of the businesses above, what are you waiting for?

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 18 Small Business Opportunities in 2020. Subscribe here: [link]

Curious about what some of the fastest-growing businesses in 2019 were? Find out here: [link]

Business Tip: If you’re thinking about starting your own business, it’s always a good idea to consider the health of the industry you’ll be entering in. [link]

Pet care, ecommerce, and software development were just a few of the fast-growing business ideas in 2019. [link]

Thinking about building a business from the ground up? Starting a business is a huge decision. Have you done your research? [link]

Real estate, construction, physicians, and warehouses—these are just some of the fastest-growing businesses from 2019! Do you have the skills needed to start one of the businesses listed in our latest blog post? [link]

Considering starting a business? Check out some of the fastest-growing business ideas from last year: [link]

18 Small Business Opportunities in 2020. Sign up for our newsletter: [link]

Cool Tech Tools: Apps that Get You Places

Wed, 27 May 2020 11:58:48 GMT

BizBoost News
Volume 9, Issue 24
For distribution 5/18/20; publication 5/21/20

Cool Tech Tools: Apps that Get You Places

If you’re unlucky enough to have a car without GPS navigation maps, the next best thing to use is your smartphone. This article will take a look at apps that help to get you from point A to point B.

Google Maps

Google Maps is the all-around favorite, whether you own an iPhone or an Android. The default navigation system on the iPhone is Apple Maps, so you will need to download Google Maps to get it.

The database is robust, mostly up-to-date, and shows not only places but also traffic congestion.

Waze

Waze is a crowd-sourced app that is good for current traffic conditions. It has some fun features, such as the speed limit of the road you’re on. You can even set it to warn you when you’re speeding. Waze users let others know where local police are checking for speeders, although this is a bit of a controversial use of the software. Other user reports include the locations of construction, road hazards, gas stations, and toll roads. A carpooling feature is also available.

At this writing, Google Maps and Waze, both owned by Google, are the only apps available for Auto navigation on the Android.

Komoot

Do you prefer to cycle or hike? If so, Komoot’s AllTrails app maps all of the hiking and cycling trails around your town. It lets you know the distance, elevation, and suggested fitness level of each trail so you can plan accordingly. You can set routes and save them as well as favorite your local trails.

There’s no fee to use the above apps. The following apps require a fee to use.

Bird and Lime

Don’t have your own ride? You may have seen people riding on motorized scooters or simply seen scooters parked on sidewalks scattered here and there. Welcome to the new field of micromobility. If you need to get somewhere that’s too short a distance for a car but too long to walk, you can unlock one of these rides with an app and hop on. A couple of companies in this space include Bird Rides Inc. (bird.co) and Lime (li.me), and Lyft.

Uber and Lyft

Of course, if you want a car, you can get a quick ride via Uber or Lyft as well as rent a car at all the traditional places.

Try out these apps so you can get where you want to go.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Cool Tech Tools - Apps that Get You Places. Subscribe here: [link]

Do you use a GPS app on your smartphone to get you from point A to point B? Whether you do or don’t, check out these cool apps that will get you where you need: [link]

Business Tip: Stuck in traffic? Save yourself some time by using a GPS app that gives you real-time information about traffic, accidents, construction, and alternate routes. Find out more here: [link]

Are you someone who loves hiking or bicycling? You may have heard of GPS apps like Google Maps and Waze for navigation, but have you heard of Komoot? Komoot maps all of the hiking and cycling trails around your town. [link]

Not a fan of the current GPS app or system you’re using? Check out these alternatives: [link]

If you need to get somewhere that’s too close to drive and too far to walk, you might benefit from unlocking a ride on a motorized scooter, like the ones available from Lime, Lyft, or Bird. Find out more here: [link]

Don’t have a built in GPS for your car? There are plenty of apps that will help you get where you need to be. Find out more here: [link]

Cool Tech Tools: Apps that Get You Places. Sign up for our newsletter: [link]

5 Signs You Need to Upgrade Your Accounting System

Wed, 27 May 2020 11:55:30 GMT

BizBoost News
Volume 9, Issue 23
For distribution 5/4/20; publication 5/7/20

5 Signs You Need to Upgrade Your Accounting System

To maximize profits in your business, all of your business functions need to run smoothly, including your accounting department. Your accounting system is at the core of your accounting function. If it is old or lacks the features you need, your business may suffer. Here are five warning signs you can look for to determine if it’s time to upgrade or replace your current accounting system with something more cost-effective.

1. Not enough users

If your current system limits the number of users you can have in the system at any one time, this could be a major enough reason in itself to switch to a larger option. Luckily, most accounting software companies include an accountant user for free, so at least this type of user doesn’t have to count toward your total requirements.

If you’re not sure how many users you currently have a license for, we can help you check on that. It might be as easy as buying more licenses if you’re not at the maximum capacity. But if you are at maximum, it may be time to look for a better accounting system with room for you and your business to grow.

2. Outdated

If your accounting system runs on desktop-based software that’s upgraded every year and you have not paid for or installed the upgrades, then your system is outdated. If it’s been sunsetted, that means the software vendor no longer supports the software. You are at major risk for the software crashing, getting buggy, getting hacked, or worse, permanently breaking.

The cost of getting the system current may be better spent looking for a new alternative, or moving to a cloud-based system where updates occur automatically.

3. Lack of functionality or scale

It is commonly the case that your business has grown so much that it’s outgrown your original accounting solution. That’s good news! It’s time to find a solution that will scale better for your business.

You might be missing important features that are costing you more time and money than if you were on a system that offered those features. Common time-wasting activities in accounting include too much time spent on data entry and/or Excel spreadsheets to make up for what the accounting system can’t do.

4. Lack of reporting and analytics

If you’re unable to receive the reports and analytics you want to run your business better from your current accounting system, it may be time to switch. With better data comes better decision-making and if lack of data is costing you money, then it’s time to find a more robust system.

5. Lack of integrations

Thousands of apps exist to expand accounting systems’ core functionality. If your current accounting system lacks integration capabilities or does not have apps that are built to integrate with it, you may be missing out on additional functionality. This include mobile apps; it’s quite common now to do much of your accounting work from your mobile phone.

Does your current accounting system have any of these red flags? If so, please reach out. We can help you find a best fit for your accounting needs.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 5 Signs You Need to Upgrade Your Accounting System. Subscribe here: [link]

Is it time for you to upgrade your accounting system? Find out here: [link]

Business Tip: If your accounting system is old or lacks the features you need, it’s time for an upgrade. [link]

Have an outdated system that requires you to update manually every so often? Consider switching to a cloud accounting system so that your system gets updated automatically. [link]

It’s incredibly common to do a lot of your accounting work from your mobile phone. Does your current accounting system include integrations for all the apps and features you need for your business, including mobile apps? [link]

Don’t have enough users in your current accounting system? It’s time for an upgrade. Find out more here: [link]

How do you know if your business needs an accounting system upgrade? Here are 5 warning signs that signal it’s time to switch it up: [link]

5 Signs You Need to Upgrade Your Accounting System.Sign up for our newsletter: [link]

Bonus Issue - Families First Coronavirus Response Act

Thu, 23 Apr 2020 14:15:35 GMT

Changes Affecting Small Business Employers

Disclaimer: This article will provide a broad overview of this act. Be sure to consult with legal experts to fully understand how this legislation affects your business.

The Families First Coronavirus Response Act was passed on March 18, 2020 and contains several provisions that affect private businesses with fewer than 500 employees and all public employers. It goes into effect April 2, 2020.

The major sections affecting employers include:

1.      Emergency paid sick time leave
2.      Tax credits
3.      Expansion of the FMLA

Other important topics for employers right now includes the OSHA requirement to maintain a safe workplace and information regarding layoffs and furloughed employees.

Emergency paid sick time leave

If an employee cannot work or telework because of the following reasons, they are eligible for emergency paid sick leave in the amount of their regular pay, up to $511 per day and $5,110 for the benefit period.

the employee is subject to quarantine or isolation
the employee has been advised by a health care provider to self-quarantine
the employee is experiencing symptoms of coronavirus and seeking a medical diagnosis

If an employee is unable to work or telework due to a need for leave because the employee is doing the following, they are eligible for two-thirds of their regular pay, up to $200 per day and $2,000 during the benefit period.

Caring for an individual who is quarantined or isolated or has been advised by a health care provider
Caring for their child if school or child care is unavailable
Is experiencing “any other substantially similar condition specified by” the Secretary of Health and Human Services in consultation with the Secretaries of the Treasury and Labor.

The amount of sick time granted is the number of hours the employee normally works in a 2-week period, up to 80 hours.

Exemptions: The Secretary of Labor can exempt small businesses with fewer than 50 employees if compliance jeopardizes going concern. They can also exclude certain health care providers or emergency responders.

This section is effective No later than April 2, 2020 and expires December 31, 2020.

Employers will need to track emergency paid sick leave separately in their time tracking or payroll system as a special payroll item so that it can be calculated and reported for tax purposes.

Payroll Tax Credits

Employers will receive payroll tax credits for qualified emergency paid sick leave that they pay to employees. They will effectively be 100% reimbursed for what they pay out.

The tax credits include health insurance payments.

Expansion of the FMLA

The Family Medical Leave Act has been expanded to include another condition for employees who have worked for the employer for at least 30 days and who are unable to work because they need to care for their child during a public health emergency because their school or day care is closed.

The benefit includes two-thirds of the employee’s regular pay, up to $200 per day and $10,000 over the benefit period.

The duration of leave is 12 weeks, and the first 10 days taken may be unpaid, but the employee can use other paid leave for those days. Health care providers and emergency responders may be excluded.

After the leave, there are protections for job restoration with some exceptions.

Safe Workplace

OSHA requires employers to maintain a safe workplace for all employees. That means keeping the workplace clean and free of employees who might be contagious. Here is a list of approved cleaners that kill COVID-19: https://www.epa.gov/pesticide-registration/list-n-disinfectants-use-against-sars-cov-2

Employers have the right to send employees home that have a temperature, display symptoms, or otherwise endanger other employees. If sent home in the middle of the workday, they must be paid for their normal day.

The CDC guidelines have been updated for additional requirements such as social distancing and other strategies. You can find them here: https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html

Layoffs and Furloughs

An employer can lay off or furlough workers. There are three kinds:

1.      Permanent layoff is one where there is no rehire date. The employer must pay accrued vacation and sick leave, if any.
2.      Temporary layoff is one where there is an intention of re-hiring within six months. The employer may be required to pay accrued vacation and sick leave.
3.      Furlough is where hours are reduced or workers are asked to stop working for a few weeks.

In all three situations, employees should be directed to apply for state unemployment insurance.

If a small business finds that it can’t make payroll, the best thing to do is to contact your accountant and/or attorney to understand your options.

Guidance for Employers

If you need help understanding what you need to do in your small business to meet these new legal requirements, please contact your HR consultant, attorney, or accountant.

Bonus Issue - Building Resilience into Your Small Business

Thu, 23 Apr 2020 14:14:01 GMT

If you currently own or manage a small business, you’ve probably experienced an extremely high demand or you’re preparing for the worst – to be shuttered by law for a few weeks or longer.

In either case, your business needs a whopping dose of resilience right now. Here are four steps to safeguard your business and discover where you need to build resiliency.

1 – Protect Your Employees

The most important thing to do is to protect your employees. OSHA demands that we give them a safe working environment, and the definition of this just changed! If possible, make it mandatory for workers to work at home, and if not, get your workers protective gear and make sure your workplace is cleaned constantly.

There are brand new laws regarding sick leave; you will need to learn them and incorporate them into your policies.

If possible, try to continue paying your workers for as long as it’s safe for your business.

If you need to lay off workers, encourage them to pursue opportunities where demand has surged. As of this writing, Walmart is hiring 150,000 workers and Amazon is hiring 100,000 workers. Educate them to go where the demand is.

2 – Execute Your Business Continuity Plan

If you’re saying “What’s a business continuity plan?” right now, you’re not alone. Most small businesses don’t have one. If you have any kind of disaster plan in place, brush off the cobwebs and start from it.

A business continuity plan helps you create a process that you can follow before and after your company experiences a disaster of any kind. Many businesses have plans to recover from weather-related catastrophes, fire, and theft. These plans can be adapted to our new situation.

A business continuity plan can have many parts. For our current situation, cash flow planning can be an important first step. You can use multiple scenarios, for example, revenue levels, to determine how much cash you might need for the next few months.

You may need to evaluate inventory, supply chain, project backlogs, staffing, cash, and other areas of your business to project how things will change from normal operations. You will need to protect your various business functions – HR, IT, accounting, operations, and administration – during this time.

Once you’ve drilled down to the tactics of how you’ll move forward, you’re ready for the next step.

3 - Communicate to Your Stakeholders

Are you open? Closed? Changed hours of business? Changed the way you greet clients? Changed your services? Added delivery services? Customers and prospects need to know, so post a notice on your website letting them know what your business’s situation is.

If you don’t, you’ll confuse your current customers and miss out on new business. Everyone is wondering what’s open and what’s not right now. And if you’re open, they’re wondering how you’ve changed your cleaning methods and other procedures to keep them safe.

You may also need to reach out to your suppliers to keep them informed of your plans.

4 – Think About Recovery

What will recovery look like when it comes? The good news about our current situation is that we have more time to plan than we would if a fire or weather brought things down suddenly. We also will not have a disruption in electricity, water, or the local supply chain in as severe an impact compared to a weather event.

What we may not have in this case is customers (or we’ll have too many of them). When customers finally start coming back, what will look different in our world? Will we need to operate differently? How will our services change?

In both the continuity plan and the recovery plan, we truly need to be innovative thinkers. We may need to evolve our business model to be something else that people want once we reopen.

Your Business Continuity Plan

If you need help building your resiliency, or even just projecting your cash flow for the next few months, please reach out and let us help.

How Business Owners Get Paid

Thu, 23 Apr 2020 14:11:00 GMT

BizBoost News
Volume 9, Issue 22
For distribution 4/20/20; publication 4/23/20

How Business Owners Get Paid

At first glance, this article topic might seem too simple. After all, to get paid, don’t you just take money out of your business? Well, yes, but there is much more to it in the long run as well as from an accounting side. Let’s take a look.

The Traditional Paycheck

If you’ve ever worked for someone else, you probably received a paycheck every few weeks. It took care of three major things:

Your regular pay that you live off of from day to day
Taxes you owe to the federal and state government
Benefits. Depending on the employer, you might have received health care, retirement contributions, and vacation and holiday pay.

The employer took care of the needs you have today as well as some of your future needs.

Your Business Pay

Now that you’re the employer – of yourself, your business has to cover all of the items mentioned above. How it does that depends on the type of entity you chose when your business was formed.

Sole Proprietors

If you are doing business as a sole proprietor, you take draws from your business instead of paychecks. A draw is simply a cash withdrawal that reduces the ownership investment you have made in your company. The draws do not include any kind of taxes, including self-employment taxes; these need to be deposited separately, usually through quarterly estimated tax deposits to the IRS and to any relevant state agency.

As a sole proprietor, you’ll likely need to find your own health insurance. And the most important thing you’ll need to do is plan for your retirement by investing in IRAs or otherwise saving money that is earmarked for your retirement.

From an accounting standpoint, owner’s draws are shown in the equity portion of the balance sheet as a reduction to the owner’s capital account.

Corporations

If your business is formed as a C Corporation or an S Corporation, you will most likely receive a paycheck just like you did when you were employed by someone else. You will also be responsible for making the payroll tax deposit, funding the retirement plan, and paying for health care insurance.

Owners can also take money out of the business over and above their paychecks.

From an accounting standpoint, corporate payroll, taxes, and benefits are all considered expenses and are shown on the income statement. Any money taken out additionally is a reduction to the owner’s capital account, and this is shown in the equity section of the balance sheet.

Partnerships

If your business is formed as a partnership, each partner will be paid distributions based on the partnership agreement. Typically, that means receiving a base salary and a portion of the profits. You can also take money out of the partnership. Taxes are not included; you are responsible for making your quarterly estimated payments. Plus, you will also be responsible for paying self-employment taxes.

For benefits like retirement plans, partners can be eligible, but the tax treatment of these and other benefits is not necessarily the same as it is for a W-2 employee. The rules are complex for deductibility, so it’s best to contact a tax professional to find out more.

Evaluating Company Profits

It’s critical to understand where your wages show up on your books so that you can truly understand your business’s profitability. With corporations, the salaries are included in the expenses, so net income is after, or net of, salaries and payroll taxes.

With sole proprietors and partnerships, the net income figure on the income statement does not include owner salaries because there aren’t any. Instead, only the equity section is impacted. Net income for partnerships and sole proprietors should always be high enough to at least “cover” an amount equivalent to a “so-called salary” for all of the active, participating owners.

If you have questions or need help understanding how business owners get paid, please feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How Business Owners Get Paid. Subscribe here: [link]

For small business owners, there’s more to getting paid than just taking money out of your business—at least from an accounting standpoint. Find out more: [link]

Business Tip: It’s critical to understand where owners’ wages show up on your books so that you can truly understand your business’s profitability. [link]

Sole proprietors take draws from their businesses instead of paychecks. This also means that they’re responsible for paying self-employment taxes. [link]

From an accounting standpoint, corporate payroll, taxes, and benefits are all considered expenses and are shown on the income statement. Learn more: [link]

Net income for partnerships and sole proprietors should always be high enough to at least “cover” an amount equivalent to a “so-called salary” for all of the active owners. Find out more here: [link]

How does your business entity type affect your business pay? Find out here: [link]

How Business Owners Get Paid. Sign up for our newsletter: [link]

How to Work from Home More Often

Thu, 23 Apr 2020 14:09:27 GMT

BizBoost News
Volume 9, Issue 21
For distribution 4/6/20; publication 4/9/20

How to Work from Home More Often

If you agree that “there’s no place like home,” then you may also have a wish to work from home more often. In many cases, you can, and here are some tools you need to get started.

If the products and services your business sells can be sold or delivered digitally, then you’re a candidate for working from home most of the time. If you have a storefront where customers visit to purchase your products and services, you can still perform some of your business duties remotely or rely on staff to greet and serve the customers.

You may also be able to be proactive about moving more and more of your business online. Some examples include:

Hold more business meetings online instead of face to face.
Encourage employees to work from home if their presence does not require face-to-face customer meetings.
Provide online training for clients who cannot travel to an onsite course.
Move your scheduling online by providing an app for clients to book their own appointments.
Move your products online by using a shopping cart.
Provide a delivery option in your business. (This may have you or your staff traveling more and not less unless your items can be delivered via a shipping service.)

Meeting with Customers

The next best thing to greeting customers in person is using video-conferencing. You can easily start with FaceTime (for iPhone users). Android users have it a little tougher, but many use Facebook’s Messenger, Google’s Duo (both parties need to download the app), or imo (ditto on both parties).

If you have more complex meeting needs, software like Zoom is perfect to get you started. Hardware-wise, you’ll need a webcam, and a microphone is preferred. If you have a cell phone, you can use the mic and speakers in the headset provided.

Simply create your account at Zoom, and set up a meeting. Invite people by emailing them a link to join you. Join the meeting at the set time, and conduct your business with your customer. You can hide your webcam if you’re shy, and you can share your screen in case you want to go over a report or something else with your client. Zoom has a free account option and can be found at https://zoom.us.

And remember, if you’re a little too shy for videoconferencing, you can always conduct business with clients using the good old-fashioned telephone or email.

Sharing Documents with Customers

If you have documents to share with all of your customers, you can post them online on your website. If you have private documents, you can use portal software to securely create a private section of the portal exclusively for that client. Apps that can do this and that are not accounting-specific include Citrix ShareFile and Box.com.

You can also share documents that don’t have sensitive financial or company information with clients using Google Drive. Simply create them, then share them using the email addresses of the appropriate clients.

Receiving Client Communications

Already customers are reaching out to businesses via all of the social media platforms as well as the messaging platforms, such as Messenger and WhatsApp. Your virtual team can easily track all of these incoming messages by watching for notifications from anywhere in the world.

You might also be using an industry-specific app for customer interactions. For example, if you’re in the wellness space, MindBody apps are ubiquitous. If you’re an attorney, you’re likely using Clio.

Keeping in Touch with Your Team

You can use the same tools mentioned above to connect with your team members, but you will probably want one or two more apps – a private messaging app for when urgent things come up that need an immediate answer, and in some cases, a task management system.

Software like Slack is perfect for you to stay in touch with your team and keep communications private. It provides messaging functionality and more.

For task management, there are literally hundreds of apps to choose from. The simplest is something like Todoist, and typical small business options include software such as Asana and Monday.com.

If you want a Swiss-army-knife suite of tools that perform many of the above functions and are deeply integrated, Microsoft Teams fits the bill by providing a full collaborative platform for businesses of all sizes.

There’s No Place Like Home

We hope these apps provide you with the ability to stay in touch with your customers and your business while working from home, sweet home.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Work from Home More Often. Subscribe here: [link]

Want to work from home more often? You can! Learn more here: [link]

Business Tip: Being more proactive about moving more and more of your business online will allow you to work from home more often. [link]

Love working from home? Try holding business meetings online instead of face-to-face. You can start with FaceTime (if you have an iPhone) or use Zoom if you have more complex meeting needs. [link]

If you have documents to share with all of your customers, you can post them online on your website. [link]

Have private documents you’d like to share with a specific client? There are many client portal tools that will help you get the job done. Find out more here: [link]

If you’re a small business owner who would like to work from home more often, our latest article has got you covered. Find out more: [link]

How to Work from Home More Often. Sign up for our newsletter: [link]

Special Issue - Coronavirus Notice for Your Clients

Tue, 24 Mar 2020 15:11:05 GMT

Preparations We’ve Made for You to Keep You Safe

During the Coronavirus COVID-19 Spread

We sincerely hope that you and your family are healthy and happy and will not be directly impacted by the highly contagious coronavirus during this flu season. In our tax and accounting office, we have taken serious precautions to fight the spread of this disease, and we wanted to let you know your health and safety is of paramount importance to us.

Optional Virtual Services

For people who prefer to restrict their social activity, we understand and are ready to serve you virtually through our cloud tools. Our team is fully equipped to handle your entire tax and accounting services, from start to finish, through a series of online virtual tools.

We can handle your initial inquiries via phone and email. We have easy-to-use video-conferencing software for those of you that want to see us face-to-face via our webcams. You can upload your documents securely and safely to our client portal and secure email tools. We can deliver your tax return in the same way, where you download it from the client portal or access it via secure, encrypted email.

All of these software applications are easy to use, and we can help you learn them.

Please note that if a quarantine goes into effect in our area, this virtual service option will definitely come in handy for all of us.

Visiting Our Office

For people who still want to come into the office, we can accommodate that too. We practice elbow-bumping instead of handshaking, and we have plenty of hand sanitizer to go around.

We do ask that if you are symptomatic with any flu symptoms, please re-schedule your appointment with us or let us help you virtually. Our goal is to not only protect our clients, but also to keep our employees safe, who are currently working round-the-clock to meet tight deadlines and to serve you.

Our Staff Safety

This busy season, more of our staff will be working remotely in their own homes. This will be done to protect our staff, their families, and our business.

Deadlines and Extensions

So far, the IRS has not extended any tax-related deadlines. Until they do, it will be business as usual.

We are working as hard as we can to get your return processed and filed for you. Please understand that if our office or community experiences significant disruptions due to this virus, we may be extending more returns than normal this year.

Healthy and Safe

We wish you and your family a healthy and safe spring, and we’re grateful for your continued business. Please reach out any time if you have questions or need help.

Mobile Accounting? It’s Here, Now

Tue, 24 Mar 2020 12:43:24 GMT

BizBoost News
Volume 9, Issue 20
For distribution 3/23/19; publication 3/26/20

Mobile Accounting? It’s Here, Now

That's right: The future is here! Now that it's officially 2020, it may be time to jump on that accounting app bandwagon if you haven't already done so. The exciting news is you can actually do a lot of your accounting tasks from your phone instead of your computer.

Here are just a few examples of accounting things you can do on your phone.

Banking

Are you still trudging to the bank to make your deposits? If so, there is a better way! Simply download your bank’s mobile app, login, and look for the Make Deposit function. Get the check you want to deposit, write “For Electronic Deposit Only” on the back and endorse it. On your phone, enter the amount, then take a picture of the check. Presto! Hit Deposit and the money will be in your account in no time.

Receipts

Shoeboxes of receipts are a thing of the past. (Thank goodness, we say, as we wipe our forehead!) Send your receipts to your accountant simply by taking a picture of them and sending them via email or through a document entry system like Receipt Bank or AutoEntry. You’ll need to set this up to connect with your accounting system, but once it’s set up, it’s a real time-saver.

Accounting

Wondering how much income you made last month? Download your accounting app on your phone and login to get many of the features that you have on your computer onto your phone. You’ll need to be on a cloud system like QuickBooks Online or Xero, or possibly have a hosted desktop solution in order to have this functionality.

Payroll

There’s no need to be tied to your desk on payroll day if you can submit or approve payroll from your phone. Many payroll systems have apps you can download so you can be free of your computer.

Add-ons

There’s a mobile app for almost any add-on you might need, such as TSheets for time tracking or Square for taking payments.

Artificial Intelligence

There are even some apps where you can talk in plain English and get a plain English answer back. These apps are using artificial intelligence which is exploding in the accounting space. You can ask questions about your cash flow or check a metric that you like to follow.

Feel free to reach out to us if you’d like to find out more or get help moving some of your accounting functions to your mobile phone.

If you find yourself on the go more often than not, having constant access to your business accounts and these features will be beneficial.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Mobile Accounting? It’s Here, Now __ Subscribe here: [link]

: [link] You can actually do a lot of your accounting from your phone instead of your computer! Find examples here!

Business Tip: [link]

No need to be tied to your desk on payroll day! You can submit or approve payroll from your phone.

[link] You can send your receipts to your accountant simply by taking a picture of them and sending them via email. It doesn't get easier than that!

[link] There’s a mobile app for almost any add-on you might need, such as TSheets for time tracking or Square for taking payments.

Find out more here: [link]

Download your accounting app on your phone and login to get many of the features that you have on your computer onto your phone, too!

: [link] Skip the bank! Use your phone to make your next deposit. Find out more here!

Mobile Accounting? It’s Here, Now__ Sign up for our newsletter: [link]

Six Tips to Grow Your Business in 2020

Tue, 24 Mar 2020 12:40:22 GMT

BizBoost News
Volume 9, Issue 19
For distribution 3/9/19; publication 3/12/20

Six Tips to Grow Your Business in 2020

Looking for fresh, effective ways to grow your business in 2020? You've come to the right place. In today's market, it can be difficult to stand out from the crowd, gain new customers or clients, and increase your company's revenue. Note: We said difficult, not impossible! Below, you'll find six fun, easy tips to help you achieve your goals and make your business bigger and better as it enters the new decade.

1. Freshen Up Your Marketing

Have you ever given your house a new coat of paint? Well, consider giving your business one, too! Not literally, of course, but by freshening up your marketing techniques, clients and prospects will see you in a new light. For example, maybe it's time for a new logo, more customer reviews to place on your site, or a new angle on your social media posts. Finally, give that old, tired website a facelift: add some new photos, offer a colorful promotion, or add new team members. Change is good and helps keep people (and Google search algorithms) interested.

2. Enhance Your Product or Services

Nothing piques an individual's interest like a new product! If you can, try to add a new product to your existing line. Or, if it makes more sense, simply add features to products you already offer. You have room to be creative here. Think about what your clients really want and try to give it to them.

3. Meet with a Financial Advisor

Do you have a financial advisor? Now is the time to meet with him or her and discuss your future goals. Specifically, ask about new opportunities (i.e. investments) to grow your company's revenue. Now—the start of a new year—is the perfect time to invest in new assets, get funding for new projects or ideas, and cut any unnecessary costs. You are in control of your company's finances, so make sure money is going where you want it and need it to go. (And if we can help, let us know!)

4. Update Your Organization Chart

Could you benefit from hiring a new employee or two? Maybe your company could prosper with the creation of a new position? It's time to update your organization chart and see what your business needs to grow for 2020. You may discover that you need additional staff and/or a position to help things run more smoothly and effectively.

5. Excite Your Team

Don't forget to take care of your own! Remember, without your employees, where would your business be? Could you make it by yourself, without any help from staff? Therefore, remind your workers that you care for them and that they're appreciated. The gesture can be as big or small as you want. For example, you could add an employee perk or benefit. Or, consider doing something small yet meaningful, like a team dinner or bonding event—anything to help show your employees that they're more than just staff.

6. Strategy, Strategy, Strategy

We've saved the best and most important tip for last: strategy. Remind yourself why you got into this business in the first place, as well as what your goals are and what you want to accomplish. Then, take a look at your current strategy. Will your strategy help you achieve those goals? If so, then great; you're on the right track! But if not, then it may be time to rework that business strategy.

Think about what you need to do or change to reach those goals, and then work on incorporating them into your business plan. It could be you just need a minor tweak or two, or maybe your company requires a larger kind of shift. Either way, only you can determine whether or not your strategy is working.

It's a new year—a new decade—and change is good! Let 2020 be the year that your business really takes off and grows. Now is the best time to accomplish all of your goals, and whether you use the list above or have ideas of your own to increase revenue, remember that only you can make a successful change happen.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Six Tips to Grow Your Business in 2020

__ Subscribe here: [link]

: [link] Want to grow your business in 2020? These tips can help!

Business Tip: [link] Have you ever given your house a new coat of pain? Well, consider giving your business one, too! Find out more here!

[link] It's a new year—a new decade—and change is good! Discover some new ways to change and grow your business.

[link] Nothing piques an individual's interest like a new product! Find out how creating a new product could help grown your business.

Find out more here: [link] Don't forget to remind your workers that you care for them and that they're appreciated!

: [link] Now—the start of a new year—is the perfect time to invest in new assets! Are you ready?

Six Tips to Grow Your Business in 2020__ Sign up for our newsletter: [link]

The Psychology of Money

Fri, 21 Feb 2020 14:15:06 GMT

BizBoost News
Volume 9, Issue 18
For distribution 2/24/19; publication 2/27/20
The Psychology of Money

The topic of money affects our emotions, beliefs, and behaviors in a very personal and individual way. Whether we have enough, need more, or are indifferent can impact our overall financial status. The most important thing to know about this topic is to be self-aware of your own feelings and actions and how they impact your wealth.

How do you feel about money in general? Does your brain repeat common beliefs like “Money doesn’t buy happiness” or “All rich people are selfish?” Does money scare you? Excite you? Do you feel like you don’t deserve to have money? Or do you feel entitled to having money? Is your ego wrapped up in how much money you make?

There is no right or wrong answer to any of these questions, but what your inner thoughts are telling you about money can impact on a subconscious level your ability to earn more or keep what you have.

How do you feel about how much money you have? Do you feel blessed? Or do you feel like you never have enough?

What are your current behaviors towards money? Are you a spender or a saver? Your behavior may be driven by your beliefs and emotions. If you’re not happy with your behavior toward money, there’s an opportunity for you to change the relationship you have with money.

Once you can bring your beliefs and behaviors into your awareness, ask yourself if they are serving you well or hindering you? You may want to find some sort of happy medium that fits your needs. Everyone has different circumstances, but if you can change your beliefs and then your behavior towards money, then you might see a change in your ability to meet your financial goals.

The ultimate goal is to be content with the relationship you have with money. Everyone is different, and that’s OK. You have to be you! But if you’re not happy with the relationship you have with money, there is opportunity for you to do some work in that area. And if we can help, please feel free to reach out.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: The Psychology of Money. Subscribe here: [link]

: [link] What are your current behaviors towards money? They could be affecting your financial status.

Business Tip: [link] Are you a spender or a saver? What’s your relationship with money?

[link] Does money scare you? Excite you? Find out more in our latest blog.

[link] Sometimes easier said than done, but don't give money the power to excite, scare, or anger you.

Find out more here: [link] If your financial status isn't currently where you want it to be, consider ways to change it. Click here!

: [link] How does money play on your emotions? Being emotional about money could affect your financial status.

The Psychology of Money. Sign up for our newsletter: [link]

Accounting Tasks at Year-End

Fri, 21 Feb 2020 14:09:28 GMT

BizBoost News
Volume 9, Issue 17
For distribution 2/10/19; publication 2/13/20
Accounting Tasks at Year-End

You might wonder why there are so many extra tasks at year-end. While the government requires much of the work, there is clean-up work and adjustments that need to be done to make the books accurate. It’s not always cost-effective to perform all of these updates monthly, so you’re actually saving money by doing some of them at year-end.

Here are just some of the items that are performed at year-end.

Tax-related:

- If you have payroll, employees need to be sent their W-2s, and the federal and state government need a copy of the W- 2s with a W-3 transmittal.
- For employees, you must also have an up-to-date W-4 signed by them.
- For employers, your federal unemployment 940 return is due.
- If you have contractors, they need to be sent their 1099s, and the IRS needs the 1099s and the 1096 transmittal.
- For contractors, you must also have an up-to-date W-9 form from them. You may also need to request an insurance certificate, or you may get a surprise at your workers compensation audit.
- For vendors that claim exemption from sales tax, you’ll need to be sure you have an exemption certificate in your files from them.
- If you pay sales tax annually, your return and payment are due.
- Your personal federal, state, and local income tax and returns are due in the spring, and they can be extended until later in the year.
- Depending on the type of entity your business is organized as, you may have franchise, federal and state tax returns to file. This deadline comes up sooner than the individual tax return due date.

Books-related:

- Just about every asset on your balance sheet needs to be verified in some way or other:

Petty cash accounts need to be reconciled and reimbursed as of year-end
Bank accounts need to be reconciled with the bank statements. This includes PayPal.
Accounts receivable balances and all other receivables need to be tied to each customer and any amounts determined to be uncollectible need to be written off.
A physical inventory count needs to be taken and the inventory account should be adjusted accordingly.
Fixed assets need to be reconciled to their fixed assets ledger and depreciation should be properly recorded.
Goodwill accounts need to be checked and amortization adjusted.
Accruals, deposits, deferred accounts and all other asset accounts need to be adjusted if necessary.

- Liabilities and equity need to be adjusted too:

Accounts payable balances and all other payables need to be tied to each vendor.
Liabilities that haven’t been recorded need to be added to the books.
Loans need to tie to lender statements, and interest paid on loans needs to be properly expensed.
The Equity accounts need to be checked and tied out to prior year balances.

- Corrections and adjustments need to be made:

Any misclassifications and corrections need to be made on the books with adjusting journal entries or other classification tools.
If the client is a cash-basis taxpayer, a reversing journal entry needs to be made to get the correct tax numbers.

- A clean set of reports can now be run and used.

Documents-related:

- This is a good time to file and store your receipts in case you are ever asked for them. For long-term storage, thermal receipts should be copied or scanned in before the ink fades.

If you’re wondering why we’re so busy this time of year, it’s all of the extra work we have to do over and above the normal monthly load. If you have questions about any of this, just ask anytime!

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Accounting Tasks at Year-End. Subscribe here: [link]

Wondering why there are so many extra tasks at year-end? Find out what these tasks are and how they can save you money: [link]

Business Tip: If you have payroll, employees need to be sent their W-2s, and the federal and state government need a copy of the W-2s with a W-3 transmittal [link]

[link] If you pay sales tax annually, your return and payment are due at year-end.

[link] For employers, your federal unemployment 940 return is due at year-end.

For long-term storage, thermal receipts should be copied or scanned in before the ink fades. Find out more here: [link]

If the client is a cash-basis taxpayer, a reversing journal entry needs to be made to get the correct tax numbers: [link]

Accounting Tasks at Year-End: Sign up for our newsletter: [link]

Add Functionality to Your Accounting System with Apps

Wed, 22 Jan 2020 18:58:40 GMT

BizBoost News
Volume 9, Issue 16
For distribution 1/27/19; publication 1/30/20
Add Functionality to Your Accounting System with Apps

Did you know that you can add apps to help increase the functionality of your core accounting system? The process will save you time and frustration. It is because every business is different that you may—and likely will—need these add-on features that aren't already included in the accounting system you currently use. That's where the apps come in: They provide a deeper functionality in the areas you need them. Take a look below at some examples we've put together.

1. Payroll

Payroll apps help to simplify how you pay your employees. These payroll apps were created to help you implement an easy and automated method of managing payroll and all things HR-related.

Popular payroll options include Intuit’s many options, Gusto, ADP, OnPay, and Patriot. Explore the different features of each app and find which one works best for you and your needs.

2. Time Tracking

The best and most accurate way to keep track of an employee's time is with an app. A wide range of apps can make not only tracking but scheduling your employees' time simple, too. These apps include:

ClockShark
BigTime
Time Tracker
TSheets
And more!

Again, each app will offer different features. For example, most have timers, but only one might offer geofencing, so find the one that’s best for your business. Regardless of which one you choose to use, though, you will quickly discover how much time and energy you save without having to do time tracking manually.

3. Inventory

Need more functionality to better manage your inventory? If you run an ecommerce, retail, or wholesale operation, you may need an inventory app to give you more features. Back order functions, drop ship handling, and recall functionality may be required depending on what you sell. Here are some popular apps for inventory:

SOS Inventory
BigCommerce
Unleashed

There are also many ecommerce apps in this space: WooCommerce and Shopify, to name a few.

4. Cash Flow

Dozens of apps exist to help you manage your cash flow as well as get funded:

CashFlowTool
Cash Flow Frog
PayPie
Chata.ai
FUndbox
Blue Vine
Fundera
And too many to list

Managing your cash and debt are important areas and ones that are easy to find to help you get quicker answers to your questions.

Now that it's 2020, try working smarter, not harder. Add-on features can help! Remember, the examples listed above are just a few apps currently available. Determine what you need for your company to make better decisions, and then look around for the perfect app.

And, if we can help you implement your ideas faster, feel free to reach out to us anytime.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Add Functionality to Your Accounting System with Apps__ Subscribe here: [link]

Looking for ways to add functionality to your accounting system? Click here!: [link]

Business Tip: Are you currently using a payroll app? Save time and hassle with these options! [link]

[link] Work smarter, not harder! These add-on apps can help!

[link] Cash flow issues? Get answers with these apps.

Find out more here: [link] Chances are, you could benefit from one of these add-on features not included in your current accounting system.

: [link] Keep track of your employees' time with these simple, user-friendly apps!

Add Functionality to Your Accounting System with Apps__ Sign up for our newsletter: [link]

Three Essential Business Roles for Success and Balance

Wed, 22 Jan 2020 18:55:27 GMT

BizBoost News
Volume 9, Issue 15
For distribution 1/13/19; publication 1/16/20
Three Essential Business Roles for Success and Balance

In his book, The Rebel Rules: Daring to Be Yourself in Business, author Chip Conley describes what investors look for in a management team when considering providing startup money to new businesses. He says your management team should consist of a “brain trust that includes a passionate visionary, a ‘get-your-hands-dirty’ operator, and a responsible, finance-minded executive.”

Even if you’re never going to seek venture capital money to fund your business, this tidbit of advice makes a great strategy question to consider for your business, especially if you are an entrepreneur. Do you have these three roles in your company?

Passionate Visionary

The passionate visionary is a creative idea person. She has the technical knowledge that supports the service or product that will be created and offered. She sees the market need and just how to sell and position the product so that clients or consumers will want the offering.

The visionary often has more ideas than budget. The finance role can evaluate the profitability of the visionary’s ideas and prioritize the projects. The operator can execute the visionary’s ideas.

The visionary provides strategic direction for the company and keeps the market offerings fresh.

If your business is missing a visionary, you might also struggle to keep your practice full as often (but not always); the sales function could fall to the visionary. You might also find yourself getting stagnant with your service offerings and falling behind the marketplace.

The fix for a missing visionary is to develop a sales and marketing team and/or a research and development team that can serve these functions.

“Roll-up-your-sleeves” Operator

The operator is an action person who can execute. She gets things done. She can find and hire the right team. She is a systems builder who can develop the systems, job descriptions, procedures, and processes that makes the company unique.

The operator takes the visionary’s ideas and makes them happen. She needs the visionary’s ideas because she would rather take someone else’s ideas and work with them than create her own. She also needs the support of the finance executive to stay on budget and to focus on one project at a time or avoid hiring too many people.

A business without a good operator never gets the product to market and may also constantly be short of team members.

Responsible, Finance-minded Executive

The finance expert helps to make the dollars work for the company. She can tell us how much we need to sell and how much we can spend. She can also provide capital sources for the company via investors or loans.

The finance executive loves numbers and can help to make sure the company’s operations are profitable. She’ll work closely with the operator to make sure that the right number of people are hired at the right salary levels. She’ll work with the visionary to plan and budget for new sources of revenue and new product lines.

Without a finance executive, a company often spends more than they bring in and may not have a viable profit plan. They may also run out of cash which can cause problems with creditors and investors.

This is the role we can not only help you fill, but also help you build your financial literacy to the level that you need for the stage your company is in now and for the future.

Your Business Success Trinity

As you were reading, which role are you? Which role jumped out at you that might need shoring up in your business? You might be strong in one area and need to outsource another while keeping a strategic eye on things overall.

Take a look at each of these roles and objectively assess your business. How are all three roles being served in your company? Which ones need more development in order for your business to grow?

Getting clear on your company’s roles can very well take you to the next level of success.

Which trends impact your business the most? Which ones speak to you? Feel free to reach out to discuss any of these ideas with us.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Three Essential Business Roles for Success and Balance
__ Subscribe here: [link]

Familiar with the three essential business roles for success and balance? Learn them here!: [link]

Business Tip: [link] Want to be successful? Be a “get-your-hands-dirty” operator. This operator is an action person who can execute. She gets things done.

[link] Feel like you’re missing a visionary? The fix for a missing visionary is to develop a sales and marketing team and/or a research and development team that can assist you.

[link] Does your company have a finance executive? Without a finance executive, a company often spends more than they bring in and may not have a viable profit plan.

Find out more here: [link] What are you company’s roles? Getting clear on your company’s roles can very well take you to the next level of success.

A business without a good operator never gets the product to market and may also constantly be short of team members. Does your business have a good operator? [link]

Three Essential Business Roles for Success and Balance
__ Sign up for our newsletter: [link]

10 Hot Business Trends for 2020

Wed, 22 Jan 2020 18:44:40 GMT

BizBoost News
Volume 9, Issue 14
For distribution 12/30/19; publication 1/2/20
10 Hot Business Trends for 2020

As we welcome in a new year (and maybe a new decade depending on how you count them), it’s a perfect time to reflect on the trends that will impact us and our businesses. Here’s a list for your consideration and reflection.

Trend #1: Sustainability

Concern for the environment has made the list of many companies’ core values. The way businesses are run can have a huge impact on the environment. While we hear a lot of stories about large companies impacting sustainability, we can also do our part as small businesses. In the accounting profession, many firms have gone paperless, transitioning from staplers, paper clips, and filing cabinets to digital storage which greatly reduces their footprint.

Trend #2: The Gig Economy

Young workers often have multiple jobs instead of the 9 to 5 jobs of their parents. This means there is more flexibility than ever before when it comes to hiring and retaining young workers. They can be employees, contractors, outsourced solutions, remote, local, part-time, full time, temporary, or permanent. Sub-trends in this area include more virtual workers and many more opportunities for veterans.

Trend #3: AI – Artificial Intelligence

This trend is impacting the accounting profession in a big way via smart data entry, smart document fetching, and even smart bookkeeping. Marketing has also been impacted in a big way through online ads, customer service solutions, and marketing technology. In email, Google is finishing our sentences for us, and chat and other technologies are having fairly effective conversations via bots.

Trend #4: Stories

Storytelling is huge everywhere. People want to know:

The story behind your business and why you do what you do
The stories about your customers and the experience they have with you and your services
The stories from your employers and how it is to work at your organization

Digital communication has moved from text to graphics to video as bandwidth improves. Video makes stories even easier to share. Smart companies will leverage both stories and video going forward to get their message out.

Trend #5: Diversity Expanded

The conversation is no longer about race, gender, and even sexual preference. It’s now about authenticity and being the same person at work and at home. No one is “normal.” But it takes courage to reveal our differences, especially if they are outside the “standard.” Your courage is more likely to be honored in 2020 than it has in prior years.

Trend #6: A WOW Customer Experience

We’ve moved way past the time of “infotainment,” yet the concept is parallel. As businesses, the challenge is how we can deliver an entertaining, positive, and memorable experience while producing the outcomes the client desires.

Trends #7: Drones

So far, drones have made appearances in photography, special effects at conferences, as toys, in movies, and of course, in war. I see them in use for safety reasons, going where people shouldn’t or can’t. They will become more pervasive in 2020 and there will be more rules, protocols, and court cases on their use.

Trend #8: User Interface

The move from desktop to mobile is nearly complete, with only the laggard portion of the population remaining. The move to voice is still a work in progress, and it will steadily continue to gain traction in 2020.

Trend #9: Actionable Analytics

Capturing information digitally gives businesses a huge amount of data to utilize but small businesses have barely scratched the surface of this profitable information. It’s time they started catching up, and that’s something our firm can help you with.

Trend #10: Pace of Transformation

New business models in companies like Tesla, Uber, Google, and Facebook will continue to show up at a rapid rate. The business that’s most nimble will be the one that changes the game or at least stays in it without folding.

Which trends impact your business the most? Which ones speak to you? Feel free to reach out to discuss any of these ideas with us.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 10 Hot Business Trends for 2020. Subscribe here: [link]

As we welcome in a new year, it’s a perfect time to reflect on the trends that will impact us and our businesses.: [link]

Business Tip: Smart companies will leverage both stories and video going forward to get their message out. [link]

Artificial Intelligence is impacting the accounting profession in a big way via smart data entry, smart document fetching, and even smart bookkeeping. [link]

These 10 trends are changing businesses. Find out more [link]

Concern for the environment has made the list of many companies’ core values. Find out more here: [link]

As businesses, the challenge is how we can deliver a positive and memorable experience while producing the outcomes the client desires. [link]

10 Hot Business Trends for 2020. Sign up for our newsletter: [link]

Cool Tech Tools: Fathom

Fri, 20 Dec 2019 13:54:25 GMT

BizBoost News
Volume 9, Issue 13
For distribution 12/16/19; publication 12/19/19
Cool Tech Tools: Fathom

If your eyes glaze over when you’re presented with financial statements for your business, you’re not alone. Many entrepreneurs benefit greatly when they can see their financial results in graphical and chart formats. Fathom is the perfect tool to help your numbers come alive so they can become meaningful for you.

Fathom is a company based in Brisbane, Queensland, Australia and founded in 2011. The product is also named Fathom and is a cloud-based software application that crunches accounting data and provides multiple views that make analysis easy. In accounting terms, we call this type of software by many names: Financial Dashboard; KPI software, where KPI stands for key performance indicators which are metrics that help you measure your business results; and Business Intelligence (BI) software.

Fathom can present your accounting data in multiple insightful views:

KPIs – Popular KPIs are pre-loaded, plus you can create and calculate your own. Fathom handles financial KPIs like the current ratio or debt-to-equity ratio, and you can also enter non-financial data such as number of employees and customer satisfaction scores.
KPI explorer – This display takes on a wheel shape where green is good and red indicates room for improvement.
Profitability – This line graph shows your business’s breakeven point.
Cash flow – This bar graph shows in red and green your cash balance fluctuations.
Trend – This line graph allows you to see at a glance the direction account balances are moving over time.
Goalseek – This chart allows you to perform what-if analysis, set goals and measure your progress.

You can also generate predefined or custom reports in Fathom. The reports can be scheduled as well as exported to Excel.

Fathom does require a setup process. It integrates with QuickBooks Online, QuickBooks Desktop, Xero, and MYOB (which is popular in Australia). It’s included in the Advanced version of QuickBooks Online. The steps to set up Fathom include:

Updating the data, which is mostly done through integration setup
Adding your company profile
Mapping Fathom to your Chart of Accounts, which is a very common setup step
Selecting your KPIs, which requires some strategy work on your part
Setting targets
Enabling alerts if desired

There’s a lot to like about Fathom. If you feel like you’d like to start digging deeper into your business’s financial results to find opportunities for more growth and profit, then please contact us anytime.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Cool Tech Tools: Fathom. Subscribe here: [link]

Fathom can present your accounting data in multiple insightful views: [link]

Business Tip: Many entrepreneurs benefit greatly when they can see their financial results in graphical and chart formats. [link]

There’s a lot to like about Fathom because it can help you measure your business results. [link]

Would you like to dive deeper in your business’s financial results to find opportunities for more growth and profit? [link]

Fathom is the perfect tool to help your numbers come alive so they can become meaningful for you. Find out more here: [link]

Fathom is a cloud-based software application that crunches accounting data and provides multiple views that make analysis easy. [link]

Cool Tech Tools: Fathom. Sign up for our newsletter: [link]

How to Stop Robocalls

Fri, 20 Dec 2019 13:46:51 GMT

BizBoost News
Volume 9, Issue 12
For distribution 12/2/19; publication 12/5/19
How to Stop Robocalls

You've received them—probably more than once—and every single time, they're painful, tedious, and unsolicited. Robocalls . . . Need we say more? You can experience a robocall, or an automated telephone call delivering a recorded message, on both a personal and business phone line. From scammers scamming to political parties politicizing, these calls can get in the way of your daily business activities, stop productivity, and simply annoy the life right out of you.

Here's how you can fight them.

Don't Let the Robocalls In

Unfortunately, robocalls can plague all types of calls, whether it's a cell phone, analog, or VoIP call.

First, if or when you receive a robocall, hang up. Easy enough, except, you know you will eventually get another call, and then another, and more after that. These calls keep coming . . . like cockroaches.

Put your name on the National Do Not Call Registry; it's free! Will it sufficiently work? No, not always. Yet, taking this step is proactive and it might keep one or two callers from connecting with you.

When an unwanted call does come in, there is often an option to “press a number” that is supposed to delete your number from the robocall registry. Viewpoints are split on this idea, as some say it works and others believe it does the complete opposite of what it's intended to do. We recommend taking your chances and pressing that number. However, if you're on the fence, don't worry; we have more options for you!

Cell

Try downloading a call-blocking app, such as Nomorobo or Robokiller. These are subscription apps that don't discriminate against carriers. You can also check with your particular provider to see if they offer any special blocking option. For example, Verizon has the Caller Name ID app. Both iPhones and Androids have built-in call-blocking features, while Samsung has a "Smart Call" feature to squash this issue.

You can limit your cell phone calls to “contacts only” by setting the “Do Not Disturb” feature on your smart phone, but is this a realistic option for business owners who often need to take calls from people not yet in their contacts?

Analog

Again, try contacting your service provider to see what options they offer. You may also consider purchasing a call-blocking device. Some of the call-blocking devices on the market can block up to 5000 numbers, such as the CPR V5000, which is available for less than $90.

VoIP

A little trickier to fight, contact your Internet provider to see if they have a service to stop robocalls coming in via VoIP. With some clever searching, you may find an innovative blocking option online. Though, if you find a compatible match, it could be costly. Always report the unwanted call to the Federal Trade Commission.

Stop the Robocall Madness Now

The truth: Robocalls are becoming more frequent each year thanks to the double-edged sword that is the Internet. These calls show no sign of stopping. If you want them to end, you need to take action—and right now!

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Stop Robocalls. Subscribe here: [link]

Robocalls show no sign of stopping. Here's how you can fight them. [link]

Business Tip: Put your name on the National Do Not Call Registry; it's free! [link]

Robocalls are becoming more frequent. If you want them to end, you need to take action—and right now! [link]

A robocall, or an automated telephone call can be painful, tedious, and unsolicited. Find out more here: [link]

Unfortunately, robocalls can plague all types of calls, whether it's a cell phone, analog, or VoIP call. [link]

Robocalls can get in the way of your daily business activities, stop productivity, and simply annoy the life right out of you. Find out how to stop them: [link]

How to Stop Robocalls. Sign up for our newsletter: [link]

Get Organized with This 32-Item Year-End Close Checklist

Mon, 18 Nov 2019 21:58:36 GMT

BizBoost News
Volume 9, Issue 11
For distribution 11/18/19; publication 11/21/19
Get Organized with This 32-Item Year-End Close Checklist

A great way to make a wonderful start to 2020 is to wrap up 2019 feeling organized and on top of the world. Here’s a checklist of items that you can start on now to make your year-end close go smoother than ever before. And don’t worry if you don’t know how to do some of these tasks – that’s what we’re here for.

Catch up on your books, especially if you do them only once a year. By doing it now, you’ll be able to get into your accountant faster this time of year and they will appreciate getting the work done ahead of their crunch time.
Catch up on bank reconciliations in case they are not up to date. Don’t forget your savings accounts, PayPal, and any other cash equivalents. Void any old uncleared checks if needed.
Review unpaid invoices in accounts receivable and get aggressive about collecting them, especially if you are a cash basis tax payer. Clean up any items that are incorrect so that the account reconciles.
Write off any invoices that are no longer collectible.
Ask employees and vendors to update their addresses in your payroll system so that W-2s and 1099s will reflect the correct addresses.
Collect any W-9s that you don’t already have on file for contractors that will receive a 1099 form from you.
Collect workers compensation proof of insurance certificates from contractors so you won’t have to pay workers comp on payments you have made to them.
Collect sales tax exemption certificates from any vendor who has not paid sales tax.
Decide if you’ll pay employee bonuses prior to year-end.
Review employee PTO and vacation time and reset or rollover the days in your payroll system.
After the final payroll runs, contact your payroll software company to make any W-2 adjustments necessary for things like health insurance.
Set the date to take inventory, and once you have, make adjustments to your books as necessary.
Write off any inventory that is unsalable. If possible, sell scrap inventory or other waste components.
Prepare a fixed assets register, calculate depreciation, and make book adjustments as needed.
Record all bills due through year-end, and reconcile your accounts payable balance to these open bills.
Make loan adjustments to reflect interest and principal allocations.
Perform account analysis on all other balance sheet accounts to make sure all balances are correct and current.
Make any additional accrual entries needed, or if you’re a cash basis taxpayer, make those adjustments as needed.
Get an idea of what your profit number will be. Choose whether you want to maximize deductions to save on taxes or whether to want to reflect more income. Decide what you can defer into 2020 or what you want to have as part of your 2019 results.
Match all transactions with their corresponding documents – receipts, bills, packing slips, etc. – to make sure you have the paper trail you need.
Download your bank statements and store them in a safe place.
Download any payroll reports and store them in a safe place.
Scan in paper documents so that they’re stored electronically.
File any important papers such as new leases, asset purchases, employee hiring contracts and other business contracts.
Prepare a budget for 2020 and enter it into your accounting system.
Take a look at the 2020 calendar to determine which holidays you’ll close and give employees a copy.
Review your product and service prices if this is the time of year you do that and make any changes you decide on.
Update your payroll system for any new unemployment insurance percentages received in a letter each year.
Update the mileage deduction rate if that rate has changed at the beginning of the year.
Set a time with your accountant to go over 2019 results and get ideas on how to meet your financial goals in 2020.
Review the metrics you’ve been using in 2019 and decide on the list of metrics and corresponding values that will take you through 2020.
Celebrate the new year; it’s a wonderful time to gain perspective and be hopeful about the upcoming year.

Start 2020 with a bang and this year-end checklist, and feel free to reach out if we can help with anything.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Get Organized with This 32-Item Year-End Close Checklist. Subscribe here: [link]

Get off to a great start in 2020 with this year-end checklist: [link]

Business Tip: To prepare for 2020 prepare a budget and enter it into your accounting system. [link]

It’s a good time to review the metrics you’ve been using in 2019 and decide on the list of metrics and corresponding values that will take you through 2020. [link]

Here’s a checklist of items that you can start on now to make your year-end close go smoother than ever before. [link]

A great way to make a wonderful start to 2020 is to wrap up 2019 feeling organized and on top of the world. Find out more here: [link]

Set a time with your accountant to go over 2019 results and get ideas on how to meet your financial goals in 2020. [link]

Get Organized with This 32-Item Year-End Close Checklist. Sign up for our newsletter: [link]

Seven Essential To-Do’s When You Get a New Customer

Mon, 04 Nov 2019 17:00:00 GMT

BizBoost News
Volume 9, Issue 10
For distribution 11/4/19; publication 11/7/19
Seven Essential To-Do’s When You Get a New Customer

Congratulations, you've landed a new customer! Or, perhaps you prefer the term “client.” Either way, you should be excited; in this particular climate, sparking fresh interest in any kind of business can be challenging. Yet, you did it, and now comes the next part: What to do after you have officially landed that customer/client.

The following essential list of to-do's will help ensure you not only keep your customer happy but that you KEEP them—period! Take a look; you will discover the list can apply to everyone and anyone.

Welcome Your New Customer

A simple "thank you" goes a long way. Remember, with today's competition, it is more important than ever to stand out. Nothing will help you stand out more than by showing appreciation to any new customers. Make sure to welcome them and thank them for choosing you/your business. This can be done in person, via card, or even email. Though, written form will likely make a lasting impression. Also, reinforce all of the benefits of choosing YOU!

2. Make a Smooth Handoff

If you think about it, this new customer has joined your family—let them know that! Introduce them to your staff (i.e. their new family and friends). Specifically, make sure they are acquainted with their person of contact and ensure it is a good fit by all involved parties.

3. Get Them Onboarded in a Fun Way

During the initial meeting—orientation, if you will—give your customer all of the vital information they will need to easily navigate your business and get the most from your services. This information could include passwords to access certain areas, emails, phone numbers, a glossary of keywords, etc. If you could present this information in the form of a video, even better! Videos are much easier to understand and leave a lasting effect!

4. Be Their New Best Resource (Goodies Added)

Do you have a new client kit? You should! This kit can include anything pertinent to the relationship with your new customer (i.e. relevant paperwork, files, contact information, etc.). Spice up this kit with some goodies, though! Everyone loves goodies. Make sure to properly read your customer to get a better understanding of their likes, but in general, these goodies could include candy and sweets, candles . . . You get the idea.

5. Connect with Them on Social Media

Whether it is Facebook, Twitter, or Instagram, almost everyone is on at least one social media platform. Connecting on social media will not only allow you to know your customer/client better but is also a great way to network with "friends" of your customer.

6. Meeting with the Customer for the First Time

There will come a point when you have that first review meeting with your customer. Be sure to deliver value and explain the service you’ve performed so far. The most essential take away from this step is that your customer feels comfortable and knowledgeable. This is a perfect time to verify any information that may seem unclear or complicated; encourage questions during this meeting.

7. Ask for a Referral or a Review

The best way to drum up more business is word of mouth. You can ask immediately or want until your relationship has blossomed and become strong. Asking for a referral or a review (or both!) is completely acceptable and a good business practice.

Incorporating these seven items into your new customer onboarding process will get your relationship off to a great start. By showing your customer they are important, you stand a better chance of securing their future business and attracting even more potential customers.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Seven Essential To-Do’s When You Get a New Customer. Subscribe here: [link]

This essential list of to-do’s will help ensure you keep your customers happy: [link]

Business Tip: During the initial meeting give your customer all of the vital information they will need to get the most from your services. [link]

By showing your customer they are important, you stand a better chance of securing their future business and attracting more potential customers. [link]

A simple "thank you" goes a long way. Remember, with today's competition, it is more important than ever to stand out. [link]

Help ensure you not only keep your customer happy but that you KEEP them. Find out how: [link]

What to do after you have officially landed that customer/client. Find out: [link]

Seven Essential To-Do’s When You Get a New Customer. Sign up for our newsletter: [link]

Using Custom Fields in Your Accounting Software

Mon, 21 Oct 2019 14:32:46 GMT

BizBoost News
Volume 9, Issue 9
For distribution 10/21/19; publication 10/24/19

Using Custom Fields in Your Accounting Software

Custom fields in your accounting software are data fields that you can define yourself. They are typically associated with customers, vendors, employees, and items, and they can help you store and categorize additional information about these stakeholders and your products and services in your business.

An example custom field that can be associated with customers is their anniversary date with you. You could also decide to store their birthday, their spouse’s name, their favorite color, or their shoe size.

Custom fields add functionality to your accounting system. Here are a few examples of practical uses for custom fields:

Staff contact for customer – if customers are assigned a particular staff member, you can add their name in a custom field
Frequency of service – daily, weekly, monthly
Warehouse location
Type of customer; for example, hospitals, pharmacies, retirement homes
Referring physician
Preferred method of contact: email, phone, fax, text, chat
License number

Some software allows you to choose the type of custom field you want to add. In some cases, this allows for cleaner data as the data can be limited to a certain type or certain values upon entry. Here are the most common types:

Free form text - this is the default type; it can come as a single line or paragraph
Check box – choose one or more values from a limited number of choices
Radio button – choose only one value from a limited number of choices
Drop down – choose a value from a dropdown list
File upload – add an attachment
Image upload – upload an image that will be displayed
Date/time – enter a date or time
Number – enter a number; it can be currency, integer, or another mathematical type of number

Custom fields allow you to meet your company’s unique needs over and above what the software provides by default. It’s a great way to make your data more meaningful. If you have some ideas for custom fields in your accounting software and want help setting them up, feel free to give us a call anytime.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Using Custom Fields in Your Accounting Software. Subscribe here: [link]

Meet your company’s unique needs above what your accounting software provides by using custom fields. [link]

Business Tip: Custom fields in your accounting software are data fields that you can define yourself. [link]

Custom fields add functionality to your accounting application. Here are a few examples of practical uses for custom fields: [link]

Custom fields can help you store and categorize additional information about customers, vendors, or employees. [link]

A great way to make your data more meaningful is by using custom fields. Find out more here: [link]

Custom fields allow you to meet your company’s needs. An example custom field is your customers’ anniversary date with you. [link]

Using Custom Fields in Your Accounting Software. Sign up for our newsletter: [link]

Protecting Clients’ Credit Card Numbers

Mon, 07 Oct 2019 14:31:29 GMT

BizBoost News
Volume 9, Issue 8
For distribution 10/7/19; publication 10/10/19

Protecting Clients’ Credit Card Numbers

Does your business ask your customers for their credit card numbers at any time during the sales process? If so, it’s essential that you honor the privacy of your customers’ private data as well as stay in compliance with the Payment Card Industry rules.

Every business that has an account with a merchant services vendor is required to follow PCI (Payment Card Industry) compliance when collecting and storing credit card data. There are many different levels of compliance depending on the technology you use to capture and store credit card data. These levels depend on whether you use a point of sale terminal, the customer hands you their card, orders are entered through an online shopping cart, or a combination.

In all cases, there are several no-no’s that you’ll want to share with your staff to make sure they are properly trained:

Never ask a client to send a credit card number via unsecure email.
Never take down a credit card number over the phone on paper before entering it into your system. If you do, you need to shred the paper immediately.
Don’t ask clients to take a photo of their credit card to send to you.

If you need to use credit card authorization forms in your business, you’ll need to consider the proper collection of these forms as well as the proper storage. Storing a credit card outside any system requires you to follow further PCI compliance steps.

After a client has signed and completed the credit card authorization form, you will need to provide a secure, encrypted email connection for them to send it back to you. Alternately, you can set up a private client portal for them using Box, DropBox, ShareFile, or another generic portal or file transfer app. Just sending a pdf via email is not a great idea unless the PDF is password-protected and the password is sent via secure, encrypted email.
Once you’ve received the form on your end, you’ll need to keep it in a secure place. If you print or download it, you’ll need to follow physical building security protocols to stay in compliance with PCI as well as to protect the customer data.

It’s not a surprise that so many credit cards get hacked each year. It’s inconvenient to customers and vendors when their credit card gets compromised, and much of this can be prevented through proactive and safe measures. Respect your customers and help them keep their credit card data safe.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Protecting Clients’ Credit Card Numbers. Subscribe here: [link]

Respect your customers and help them keep their credit card data safe. [link]

Business Tip: Never ask a client to send a credit card number via email. [link]

It’s essential you honor the privacy of your customers’ private data as well as stay in compliance with the Payment Card Industry rules. [link]

Through proactive and safe measures, you can help customers and vendors keep their data safe. [link]

When collecting and storing credit card data every business is required to follow PCI (Payment Card Industry) compliance. Find out more here: [link]

It’s important to protect the privacy of your customers’ credit card numbers and private data. Find out how. [link]

Protecting Clients’ Credit Card Numbers. Sign up for our newsletter: [link]

Avoiding Accounts Payable Errors: What to Watch Out for

Mon, 23 Sep 2019 14:28:56 GMT

BizBoost News
Volume 9, Issue 7
For distribution 9/23/19; publication 9/26/19

Avoiding Accounts Payable Errors: What to Watch Out for

When you pay a bill in your business, are you 100 percent comfortable that the bill payment is correct and justified? Is there ever a chance that that bill is fake or fraudulent? What about duplicates? With so many fake bills being mailed to businesses these days, it makes sense to think about controls you can put into place to reduce the risk that you might write a check out of your hard-earned profits that should never be written.

Accounts Payable Controls

In the accounting profession, the term “internal controls” refers to processes, procedures, and automations you can put into place to reduce errors. In accounts payable, there is a specific subset of rules and controls you can put into place to reduce risk in this area. Here are just a few ideas.

1. Approvals

All bills should be approved by the appropriate level of staff in your business. Sometimes a bill gets approved that is fake or shouldn’t be approved, especially in areas where the approver doesn’t have technical knowledge of what they are buying. Be sure to read the fine print on the bill and make sure you know what you are paying for.

2. Segregation of duties

The person who pays the bill should be different from the person who submitted the bill. These people should be different from the one who signs the check. This reduces employee fraud.

3. Receipt confirmation

A packing slip or other confirmation of receipt of the goods or services should be matched to the invoice, line item by line item.

4. Math check

A prudent step is to check an invoice’s math, at least for reasonableness.

5. Duplicate payments

If a vendor emails their bill as well as mails a hard copy, controls should be put in place (usually automated) to avoid duplicate payments on the same bill.

6. Reconciliation

If there are a significant number of transactions between you and a vendor, an accounts payable reconciliation should be performed each month via a statement.

7. Missing check numbers

Most systems provide a missing check numbers report that you can use to make sure all checks are accounted for.

8. Bank reconciliation

A bank reconciliation is a sure way to see exactly what checks cleared your bank account.

9. Coding

Coding each transaction to the correct expense account, inventory, asset, or cost of goods sold account is an essential part of the process.

10. Income statement review

Each month, a review of the balances in your expense accounts as well as a disbursements ledger review for reasonableness can provide added peace of mind.

11. Purchase order

Requiring purchase orders is another control you can add to your process. Purchase orders should be matched to packing slips and invoices before payment or approvals are made.

12. In-depth knowledge of your business’s numbers

The more you get to know the numbers in your business, the greater chance you’ll have of accurate accounts payable handling.

And if you’d like to discuss your accounts payable function with us and how it can be improved, we’re happy for you to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Avoiding Accounts Payable Errors: What to Watch Out for. Subscribe here: [link]

How can the accounts payable function be improved in your business? [link]

Business Tip: In accounting, the term “internal controls” refers to processes, procedures, and automations you can put into place to reduce errors. [link]

With fake bills being mailed to businesses these days, think about controls you can put into place to reduce the risk. [link]

The more you get to know the numbers in your business, the greater chance you’ll have of accurate accounts payable handling. [link]

There are specific rules and controls you can put into place to reduce accounts payable errors in your business. Find out more here: [link]

When you pay a bill in your business, are you sure that the bill payment is correct? Is there ever a chance that that bill is fake or fraudulent? [link]

Avoiding Accounts Payable Errors: What to Watch Out for. Sign up for our newsletter: [link]

Does Your Business Have a Safety Net?

Mon, 09 Sep 2019 14:27:01 GMT

BizBoost News
Volume 9, Issue 6
For distribution 9/9/19; publication 9/12/19
Does Your Business Have a Safety Net?

One of the most important parts of managing a business is making sure there is enough cash to keep the business going. As a business owner, you probably have a very good idea how much cash you have in the bank at any time. The smaller your business is, the more likely you are to keep a close eye on cash.

Checking your cash balance is a daily function you should be on top of. Yet there is another often-overlooked responsibility that many business owners don’t spend enough time on, and that is managing your future cash, especially in light of unplanned situations. Looking ahead helps reduce your business risk and allows you more time to correct any upcoming dip in your cash balance.

Having enough cash is akin to having a safety net for your business. It can sometimes even mean the difference between staying in business and going out of business. To plan how much you might need for your safety net, you can use a few different methodologies.

One way to plan your safety net is to prepare for the worst-case scenario. How long would your cash hold out if no revenue were to come in but all expenses kept going out? Some questions you might ask:

At what point will your cash run out? How many weeks or months of cash do you have?
Do you have a line of credit you can tap at a bank?
Do you have other loans or sources of cash that you can tap quickly in case of emergency?
What expenses could you shut down without hurting your business if you had to?

Another way to plan your safety net is to do what the average business does: acquire the amount of cash you need for two to three months’ worth of operations and keep it on hand. Alternately, you can make a plan to liquidate that much cash on a very fast basis and only put your plan in place if it’s needed.

An easy way to get these numbers is to look at your bank statements in conjunction with your average accounts receivable and accounts payable balances. If that’s all Greek to you, no worries. Feel free to contact us and we can help you figure out a safety net number that you’ll feel comfortable with and that will keep your business risk low.

Once you have a safety net in place, you’ll gain peace of mind for your business. It’s one step in an overall disaster preparedness plan that you can make for your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Does Your Business Have a Safety Net? Subscribe here: [link]

One way to plan your business safety net is to prepare for the worst-case scenario: [link]

Business Tip: Figure out a safety net number that will keep your business risk low. [link]

Many business owners don’t spend enough time managing future cash, especially in light of unplanned situations. [link]

One of the most important parts of managing a business is making sure there is enough cash to keep the business going. [link]

Gain peace of mind for your business by having a safety net in place. Find out more here: [link]

Looking ahead helps reduce your business risk and allows you more time to correct any upcoming dip in your cash balance. [link]

Does Your Business Have a Safety Net? Sign up for our newsletter: [link]

Why Having a Budget Is Important

Mon, 26 Aug 2019 16:42:34 GMT

BizBoost News
Volume 9, Issue 5
For distribution 8/26/19; publication 8/29/19
Why Having a Budget Is Important

As an entrepreneur, you likely place a high value on freedom. When the word “budget” is mentioned, you might cringe and feel like it hampers your freedom. But it’s really the opposite. Here’s why.

According to a 2019 article in Small Business Trends, “Startup Statistics – The Numbers You Need to Know,” 82 percent of businesses that fail do so because of cash flow problems. Even if your business is no longer a startup, the failure rates for businesses started in 2014 were as follows:

20 percent failed to make it to their second year,
30 percent failed to make it to their third year,
38 percent failed to make it to their fourth year, and
44 percent failed to make it to their fifth year.

Many of the reasons for business failure can be prevented with good budgeting and planning. Here are some benefits of making a budget and managing to it.

A budget helps to control spending by seeing what’s available beyond your cash balance at the time.
Impulse spending can be curbed by avoiding spending on anything that is not budgeted for.
If a loan is needed to finance the business, you have a better idea of how much you need and how to best schedule the loan payments.
Your chances of business success increase with a budget.
You can see future revenue shortfalls so that you can take proactive steps to boost sales.
You can better manage growth.
You have a better idea of your profit level so you can make pricing changes, tax predictions, appropriate compensation, and other strategic changes.
You can plan for large expenditures such as asset purchases and time them better for cash flow, loan acquisition, and other considerations.

Getting started with a budget is easy. If you’ve been in business for more than one year, you can start with last year’s actual figures and then adjust for the growth and changes you want. The numbers can be input into your accounting system so that you can get reports that measure actual progress versus the budget numbers. You can then make good business decisions based on your variances.

When you take a little bit of time to create a budget, you really can enjoy the freedom of knowing you’re on track to make your numbers. If we’re not already working with you on your budget, feel free to reach out to find out more.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Why Having a Budget Is Important. Subscribe here: [link]

Many of the reasons for business failure can be prevented with good budgeting and planning. [link]

Business Tip: Impulse spending can be curbed by avoiding spending on anything that is not budgeted for. [link]

Getting started with a budget is easy and you can then make good business decisions based on your variances. [link]

When you take a little bit of time to create a budget, you really can enjoy the freedom of knowing you’re on track to make your numbers. [link]

Your chances of business success increase with a budget. Find out more here: [link]

Here are some benefits of making a budget and managing to it: [link]

Why Having a Budget Is Important. Sign up for our newsletter: [link]

Cool Tech Tools: Zoom

Mon, 12 Aug 2019 16:40:31 GMT

BizBoost News
Volume 9, Issue 4
For distribution 8/12/19; publication 8/15/19
Cool Tech Tools: Zoom

More and more small businesses are finding virtual meetings useful. Virtual meetings have many advantages:

No travel time is needed for participants, so you’ll save on gas and auto maintenance.
They create an ability to visually connect with remote employees, customers, vendors, partners, job candidates, and other stakeholders.
They are better than a phone call because of the visual element.

Before you climb into the car or book a flight, think about whether a virtual meeting could save you time and deliver the same result. It’s a very big change in habit to get used to, but when you do, you’ll find it saves you time and money.

To hold a virtual meeting, you’ll need a software app that works in your browser. There are many choices available, and one popular one is called Zoom. You can find them at https://zoom.us/.

It’s easier than you might think to hold a virtual meeting. The learning curve is more psychological than any skill or equipment needed. You’ll need a computer, and you can use your phone or your computer for audio. If you use your computer for audio, you’ll need a microphone and speakers.

For best results, you should also have a webcam built in to your computer, or you can purchase one separately and connect it. Everyone is camera-shy, or webcam-shy, but don’t let that stop you! You can always host a meeting without video.

Zoom has a free account that you can use to try out virtual meetings. Once you’ve set up your account, you can schedule a meeting or host a meeting on the fly. Setup choices include whether you’ll use computer or phone audio, whether you want the video to be on or off, and whether you want to record the session, which can be very handy. You can also mute and unmute participants, so that it can be used for classes as well as meetings.

Here are a few tips to make sure your virtual meetings go off without a hitch:

Treat a virtual meeting with the same importance as a face-to-face one: be on time, have an agenda, and make sure everyone is heard.
Audio quality is probably more important than visual quality. If you are new to the software, do a test run before you start inviting clients to meetings so you can get through any learning curve. Consider using a microphone headset for higher quality sound. Apple EarPods work great if you have an iPhone.
For good video results, face a window or light source so that your face is not in shadow. The brighter the better; everyone looks better with more lighting because the light erases wrinkles! If possible, the webcam lens should be at eye level or above. You can use books under your computer to raise it if you need to.

Try virtual meetings in your business, and invite us to your next meeting.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Cool Tech Tools: Zoom. Subscribe here: [link]

To hold a virtual meeting, you’ll need a software app that works in your browser. One popular one is called Zoom: [link]

Business Tip: For virtual meetings audio quality is probably more important than visual quality. [link]

It’s easier than you might think to hold a virtual meeting. [link]

More and more small businesses are finding virtual meetings useful. Virtual meetings have many advantages. [link]

Virtual meetings are better than a phone call because of the visual element. Find out more here: [link]

Here are a few tips to make sure your virtual meetings go off without a hitch: [link]

Cool Tech Tools: Zoom. Sign up for our newsletter: [link]

Five Key Reports for Your Business

Thu, 01 Aug 2019 16:38:35 GMT

BizBoost News
Volume 9, Issue 3
For distribution 7/29/19; publication 8/1/19
Five Key Reports for Your Business

Each month, your accounting system yields actionable information for you to run your business better. Here are some key reports that all business owners should review every month.

Balance Sheet

A quick review of the balance sheet can tell you the balances of your current assets and current liabilities. Current assets should always be larger than current liabilities; if it’s not, you may have liquidity issues.

You can also take a look at these accounts: cash, accounts receivable, and accounts payable. They should look reasonable to you based on your business history.

Accounts Receivable Aging

Your gaining report can alert you to who has not paid their invoice, so that you can take action to collect that money. Any balances over 30 days should trigger a collection process since the older the receivable gets, the less likely it is to collect.

Accounts Payable Aging

Hopefully, this report is clean and you are able to pay all of your bills on time. If you have an unusually large amount in this account, you’ll want to make sure you have the future cash to pay the bills.

Income Statement

The first number most entrepreneurs look at on the income statement is profit. It’s a good idea to review every account balance on this report to see if it is what you expected. Some questions to ask yourself include:

Did I generate the amount of revenue that I expected? If not, should I ramp up marketing for the next few months?
Do all of my expenses look reasonable? Are there any numbers that look too high?
Are my payroll expenses in line with what I was expecting?
Which accounts caused me to generate more or less profit?
What I can I do next month to improve performance and increase profit?

Sales Reports

There are many excellent sales reports to dive deeper into your revenue so you can see what sold and what didn’t. Sales by Item and Sales by Customer are two good options for you to get more detail about your revenue balances. By analyzing your revenue, you can see what promotions worked and how you might take action to increase sales.

These five reports are very basic, but they are also very key to your business. To profit from these reports, it’s up to you to take action in your business to improve your success.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Five Key Reports for Your Business. Subscribe here: [link]

Each month, your accounting system yields actionable information for you to run your business better. Find Out More: [link]

Business Tip: Your gaining report can alert you to who has not paid their invoice, so that you can take action to collect that money. [link]

Reports are the key to your business. It’s up to you to take action in your business to improve your success. [link]

It’s a good idea to review every account balance on your Income Statement report to see if it is what you expected. [link]

A quick review of your balance sheet can tell you the balances of your current assets and current liabilities. Find out more here: [link]

Here are some key reports that all business owners should review every month: [link]

Five Key Reports for Your Business. Sign up for our newsletter: [link]

Understanding Cost of Goods Sold

Thu, 18 Jul 2019 20:26:45 GMT

BizBoost News
Volume 9, Issue 2
For distribution 7/15/19; publication 7/18/19
Understanding Cost of Goods Sold

The account on your income statement called Cost of Goods Sold can be confusing to non-accountants. In this article, we’ll attempt to de-mystify it and explain how it works.

Cost of Goods Sold is an account in your Chart of Accounts that is a very special type of expense. It is the amount of direct costs of items that were sold by the company. It is related to inventory, and it helps to see the flow of transactions to understand the big picture.

When you purchase an inventory item for sale, it’s considered an asset (not an expense yet) in your company. When you sell an inventory item, the asset is reduced and the Cost of Goods Sold account is increased, moving the item from an asset to an expense. It’s no longer an asset once it’s sold, and the cost of the item sold reduces your profit and is expensed into the Cost of Goods Sold account.

Some accountants will abbreviate the Cost of Goods Sold account to COGS, and you might hear them call it that.

In the case of wholesale and retail businesses, the cost of goods sold is the amount that was paid for the inventory items to be sold. In the case of a manufacturer, the costs can include the cost of raw materials, labor to produce the item, and sometimes additional allocations of other related costs. Construction businesses may have a Cost of Construction account or Contract Costs instead of COGS. Service businesses will typically not have a balance in the Cost of Goods Sold account. If they do have direct costs, the costs are often coded to a Supplies account under expenses.

At any point in time, the cost of items you purchase are in two different accounts:

The unsold items are reflected in the asset account, Inventory, on your Balance Sheet report.
The sold items are reflected in the Cost of Goods Sold account, on your Income Statement report.

It’s important that the Cost of Goods Sold balance is accurate, because there are many good things you can learn from it when you compare it with inventory. You can learn how fast your inventory is selling, and you can determine your gross profit margin.

If your inventory purchases have not been coded correctly, you can take inventory and arrive at the correct cost of unsold items. If your physical inventory does not match your books, your accountant can make a correcting entry between Cost of Goods Sold and the Inventory account so that both of them are accurate.

If you have further questions about the Cost of Goods Sold account, feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Understanding Cost of Goods Sold. Subscribe here: [link]

When you know your Cost of Goods Sold amount, you can learn how fast your inventory is selling.[link]

Business Tip: Some accountants will abbreviate the Cost of Goods Sold account to COGS, and you might hear them call it that. [link]

Cost of Goods Sold is the amount of direct costs of items that were sold by the company. [link]

It’s important that the Cost of Goods Sold balance is accurate, because you can learn from it when you compare it with inventory. [link]

The account on your income statement called Cost of Goods Sold can be confusing. Find out more here: [link]

What is Cost of Goods Sold? How does it affect your business? [link]

Understanding Cost of Goods Sold. Sign up for our newsletter: [link]

Mid-Year Review

Wed, 03 Jul 2019 20:25:31 GMT

BizBoost News
Volume 9, Issue 1
For distribution 7/1/19; publication 7/3/19
Mid-Year Review

Can you believe that half of 2019 is gone already? That means it’s a great time to take stock of how your business has done for the first half of 2019 so that you can meet your financial goals for the entire year.

On Track for Sales

Are you on track to make your 2019 revenue number? The first step is to check your 2019 budget numbers for total revenue. (Don’t have a budget? – Check with us; we’d be delighted to discuss that service with you.)

Next, get your Income Statement for June 2019 Year-to-Date and check the revenue figure. Are you on track with your budget, or are you halfway there revenue-wise, accounting for seasonality? If so, pat yourself on the back! If not, what promotions will you put in place to boost your growth for the rest of 2019?

On Track for Profit

Looking at the same Income Statement, check your net income figure. Are you on track with what you planned? If so, great! If not, the reason is simple: it will be either lower sales than expected or higher expenses than expected.

If your expenses are too high, you’ll need to drill down into each of your expense accounts, including cost of goods sold, to see which ones are higher than expected. Were there some unanticipated costs? Does your pricing need adjusting? Do you need more volume to cover your costs? This is where we can help you with an analysis of where your opportunities are to increase profit.

On Track for Cash

One more place to look is your cash balance. It can be uncomfortable when you are running short of cash for your business. If your balance is lower than you’d like it to be, it could be because of some of the factors mentioned above. It could also be because you just purchased an asset like a truck. If you need help with improving your cash flow, that’s another thing we can help you with.

Mid-Year Review

This mid-year review can help you head off any small problems before they grow into big ones throughout the rest of the year. And it can keep you on track so you can meet your 2019 business goals.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Mid-Year Review. Subscribe here: [link]

Are you on track to meeting your financial goals this year? Find out with our mid-year review: [link]

Business Tip: If your expenses are too high, you’ll need to drill down into each of your expense accounts, including cost of goods sold, to see which ones are higher than expected. [link]

Are you on track to make your revenue goal this year? If not, what promotions will you put in place to boost your growth for the rest of the year? [link]

For your mid-year review, check your revenue and profit figures on your Income Statement for June 2019 Year-to-Date to see if you’re on track to meeting your financial goals this year. [link]

Head off any small financial problems before they grow into bigger issues. Find out more here: [link]

Are you on track for sales, profits and cash for your business this year? It’s a great time to review how your business has done for the first half of 2019: [link]

Mid-Year Review. Sign up for our newsletter: [link]

Five Timeless Tips to Improve Customer Service

Mon, 17 Jun 2019 12:12:37 GMT

BizBoost News
Volume 8, Issue 26
For distribution 6/17/19; publication 6/20/19
Five Timeless Tips to Improve Customer Service

Having repeat customers is essential to many businesses, and the key to keep clients coming back is to provide them with great customer service. Here are five ideas to rate your business’s savvy when it comes to serving customers well.

1. Make a great first impression.

When customers make a purchase from you, make them feel great about it by sending them a series of indoctrination emails. Congratulate them on the purchase, let them know how to get the most out of their new purchase, and encourage them to connect with you on social media and your mailing list

2. Measure response time.

How fast do you answer prospect and customer questions? Social media has changed the game. Customers that reach out via social media platforms, their phones, chat, or messaging apps expect an immediate answer. Facebook even gives a badge to businesses who respond quickly and consistently.

Not only do businesses need to monitor messages coming in from a record number of places – email, phone, web forms, chat, social media, and more – they need to respond faster than ever.

Without measuring your response time, it’s hard to know how you’re doing, so putting measures in place is the first step to improving this customer service metric.

3. Publish clear policies.

Good customer service starts with setting clear expectations. Before a customer buys from you, they should be able to know what your return policy is in case something goes wrong. Some of the policies that should clearly be published online as well as at all customer-facing business locations include:

Returns policy: If the product or service is not as expected, can the customer obtain a refund? Is there a re-stocking fee? What about shipping? Cash back vs. store credit?
Shipping policy: Most people expect free shipping these days. They will want to know what it costs and how long will it take to get the item.
Terms of service: Are there any limitations to the product? Or legal items that need to be communicated?
Privacy policy: All clients will be giving you private customer data. They will want to know if it’s secure, if you share it with anyone, and if you are compliant with laws like GDPR (Europe), the CAN-SPAM act (US), or CASL (Canada).

4. Encourage feedback.

Your best ideas for new products and services can come from your customers. Ask for feedback by sending customer satisfaction surveys and requests for testimonials and reviews. Read what customers have to say about your service so that you can make improvements as needed.

5. Check your ego at the door.

As small business owners, sometimes we need to be humble, especially when things go wrong. Be generous with apologies to customers; it will go a long way toward improving customer relations. If you’re at fault, admit it and make it right with the customer. Even if you’re “right,” find a way to explain to the customer so that they feel good about you and your business.

Delivering great customer service can be a huge competitive advantage for your business. How does your business stack up against these five ideas? Try them, and watch your revenue grow.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Five Timeless Tips to Improve Customer Service. Subscribe here: [link]

How would you rate your business’s customer service? Here are five timeless tips to improve customer service that you can implement in your business: [link]

Business Tip: Having repeat customers is essential to many businesses, and the key to keep clients coming back is to provide them with great customer service. [link]

Good customer service starts with setting clear expectations. Your return policy, shipping policy, and terms of service are a few of the policies that should be published online and at all customer-facing business locations. [link]

Encourage feedback from your customers! Often, they’re your best source for ideas when it comes to creating new products and services. [link]

Did you know that delivering great customer service can be a huge competitive advantage for your business? Find out more here: [link]

Grow your revenue by providing great customer service. Learn more: [link]

Five Timeless Tips to Improve Customer Service. Sign up for our newsletter: [link]

Do You Know Who Your Top Customers Are?

Wed, 05 Jun 2019 12:11:24 GMT

BizBoost News
Volume 8, Issue 25
For distribution 6/3/19; publication 6/6/19
Do You Know Who Your Top Customers Are?

Every business has customers, and while all customers are important, most entrepreneurs will agree that some customers are more important than others. This may be due to the amount of revenue the customer brings in, their ability to refer new clients to you, the interesting challenges of the customer, or another factor. It makes sense to identify these clients so you can spend more time with them or at least acknowledge them in some way.

How do you find out which clients have generated the most revenue with you? If you store customer data in your accounting system, you can run a report to generate the data you need. In QuickBooks, the report is called the Income by Customer Summary Report. In Xero, it’s called Income by Contact. If you do not store customer data in your accounting system, you may be able to generate a report from your billing system, shopping cart, or point-of-sale system.

The reports look like this: each row holds the customer name and the Income column holds total revenue by the customer. If your system allows you to sort the revenue field, do this in descending order. If not, you can export the data to Excel and sort it in Excel.

Once you’ve sorted the data, the answer is right in front of you. Your top customers based on revenue will show in order. These are the customers you may want to consider spending more time with. Schedule periodic lunches with them, give them a call on a regular basis, and send them a gift or thank you note once in a while. The report helps you organize your connection points with your top clients so you don’t miss an opportunity or forget to reach out to an important customer.

Run this report on a regular basis so that you’re focused on nurturing the most important relationships in your business. You can also look at trends to see if you’re losing revenue over time or gaining revenue with new clients. You can reach out to clients that are spending less with you to try to save the relationship before it’s too late. And you can get to know new clients that are growing with you so that you can grab even more business.

Make this report a regular activity in your business to stay close to what your customers are doing with you.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Do You Know Who Your Top Customers Are? Subscribe here: [link]

Do you know how to find out which clients have generated the most revenue with you? Learn more: [link]

Business Tip: It makes sense to identify top clients so you can spend more time with them or at least acknowledge them in some way. [link]

If you store customer data in your accounting system, you can run a report to generate the data you need to find out which customers have generated the most revenue for you. [link]

QuickBooks Tip: Run the Income by Customer Summary Report on a regular basis so that you can figure out who your top customers are and focus on nurturing the most important relationships in your business. [link]

It’s important to regularly generate a report to figure out which clients have generated the most revenue for you. Find out more here: [link]

A report on your top clients by revenue helps you organize your connection points with your most important clients so you don’t miss an opportunity or forget a reach out to an important customer. [link]

Do You Know Who Your Top Customers Are? Sign up for our newsletter: [link]

Accounting-Related Policies

Thu, 02 May 2019 18:58:39 GMT

BizBoost News
Volume 8, Issue 24
For distribution 5/20/19; publication 523/19

Accounting-Related Policies

Setting customer expectations in your business is essential to gain the trust of your customers, avoid conflicts, and maintain a high level of customer service. One way to set customer expectations is to clearly state policies that are customer-facing. Many of these are accounting policies that we can help you with. The following policies are ones that every business should clearly publish.

Refund Policy

When customers purchase your products or service and don’t get what they expect, what is their recourse? Your refund policy should clearly state which products and services are refundable. Do customers need to physically return the product in-store or via shipping? What if it’s a service? Are they refunded in cash or credit card? Or is it a store credit? Is there a deadline for refunds?

All of these questions should clearly be outlined in your refund policy. Your website is a great place to publish it.

Customer Complaints

If your customer has a complaint, how should they submit it? Is there a hotline to call, a suggestion box, or a form to fill out? If your business and employees are licensed, is there a government agency to write? A notice should be posted on your website and in your physical location describing where to submit complaints.

Shipping Policy

Not all businesses need a shipping policy, but you do if you ship physical goods to a customer location. What is the cost of shipping? What is the expected delivery time? A shipping policy explains this as well as what can go wrong: If the item was never received, what should one do? Must you sign for a shipment? If you return a shipment, who pays the shipping? If an item is received damaged, how do you file a claim?

Payment Methods

While not a policy this customer communication needs to be clearly posted. What forms of payment will you take? If you take a check, what ID does the customer need to show? Do you take some of the newer forms of payment such as Apple Pay or cryptocurrencies? How do gift cards work?

Past-Due Accounts

If a customer doesn’t pay their bills on time, they should know what to expect. Will interest be charged? Will the account be sent for collections? Will someone break the customers’ legs? Will future purchases be cancelled or require a C.O.D. (cash on delivery) payment?

You might not think of your accountant when it comes to writing these policies, but you should; we can help. A good accountant can help you craft these customer service policies so that your communications and expectations with customers are better than ever.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Accounting-Related Policies. Subscribe here: [link]

There are some accounting-related policies that every business should clearly publish. Find out more: [link]

Business Tip: Setting customer expectations in your business is essential to gain the trust of your customers, avoid conflicts, and maintain a high level of customer service. [link]

A good accountant can help you craft important customer service policies so that your communications and expectations with customers is better than ever. [link]

One way to set customer expectations is to clearly state policies that are customer-facing. [link]

One of the policies that every business should clearly publish is a refund policy. What should be included in your refund policy? Where should you publish it? Find out more here: [link]

Refund policies, past-due account policies, and shipping policies are just some of the important customer service policies that need to be clearly published. Find out more: [link]

Accounting-Related Policies. Sign up for our newsletter: [link]

How AI Is Changing Accounting

Thu, 02 May 2019 18:56:12 GMT

BizBoost News
Volume 8, Issue 23
For distribution 5/6/19; publication 5/9/19

How AI Is Changing Accounting

Artificial intelligence (AI) has arrived in the accounting profession in a big way. The good news is it’s streamlining accounting tasks, finding patterns in data you can take action on, and generally making things better. Here are just a few places we’re seeing AI and machine learning impact accounting.

Transaction Coding

Most systems have incorporated some form of machine learning into transaction coding. When bank feeds are imported, each transaction needs to be coded to add the account code in the chart of accounts. Class, tracking codes, and other custom data may need to be added as well. Rules can be set so that the accounting application can pre-code the transactions; in this case the accountant simply approves or corrects the entry.

Invoice Fetching

It starts with a picture of a receipt. Invoice fetching applications can turn pixels into data using sophisticated OCR (optical character recognition). The data is then turned into a business transaction that can be imported into an accounting system.

Auditing

The books of many government agencies, nonprofits, and large businesses need to be audited on a regular basis. Auditing is an expensive process. Smart programs can review a company’s data and assess where the risks and anomalies are so that the audit program can be modified to focus on the more important parts. This reduces risk and cost for everyone involved.

Accounts Payable

Artificial intelligence can help to speed up the matching of purchase orders, packing slips, and invoices so that accounts payable tasks are streamlined. It can also automate approvals and look for duplicate invoices to avoid overpayments.

Accounting Tasks That Are Clerical

Robotic Process Automation (RPA) is a platform that allows users to create automation without involving the IT department. Think Excel macros or Zapier on steroids. Any workflow with a mind-numbing set of clerical steps is a candidate for RPA.

AI allows accountants to spend less time on routine tasks and more time on higher-level analysis work. As AI becomes more affordable for small businesses, everyone will benefit from this long-term trend.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How AI Is Changing Accounting. Subscribe here: [link]

Find out how AI is streamlining accounting tasks and making things better in the accounting world: [link]

Business Tip: Rules can be set so that an accounting application can pre-code the transactions; in this case the accountant simply approves or corrects the entry. [link]

Auditing is an expensive process. Smart programs can review a company’s data and assess where the risks and anomalies are so that the audit program can be modified to focus on the more important parts. [link]

Artificial intelligence can help to speed up the matching of purchase orders, packing slips, and invoices so that accounts payable tasks are streamlined. [link]

Artificial intelligence has arrived in the accounting profession in a big way—streamlining accounting tasks, finding patterns in data for accountants to take action on, and more! Find out more here: [link]

AI is changing accounting for the better. Here are just a few of the places where we’re seeing AI and machine learning impact accounting: [link]

How AI Is Changing Accounting. Sign up for our newsletter: [link]

Buying a Car or Truck for Your Business?

Tue, 23 Apr 2019 01:33:14 GMT

BizBoost News
Volume 8, Issue 22
For distribution 4/22/19; publication 4/25/19

Buying a Car or Truck for Your Business?

When you purchase a new vehicle, you get the fun of riding around in a new car with the new car smell! Our job has just begun – to get your new asset recorded properly on your books. We thought it’d be fun to give you a behind-the-scenes sneak peek at our part.

Sales Contract

The first thing we’ll ask you for is the sales contract. It will give us the payment price of your car, and we’ll use that number to record your new asset on your balance sheet. If you paid cash with no trade-in, the journal entry we’ll make is:

Debit: 2019 Toyota RAV4 $25,500
Credit: Cash $25,500

Then we’ll decide on a depreciation method and book depreciation monthly or at year-end.

Debit: Depreciation Expense $5,100
Credit: Accumulated Depreciation: $5,100

Trade-in

If you traded in a vehicle that is on your books, we’ll need to make an adjustment to your books. Effectively, your old car will be eliminated from your balance sheet. If this asset had a book value and it was not fully depreciated, the net value would be compared to the trade-in value and a gain or loss on the asset sale would be recorded on your income statement.

Let’s say the balance sheet value of the three-year-old car you traded in was $10,000 and you got $8,000 on the trade-in. Here’s what we would record:

Debit: 2019 Toyota RAV4                 $25,500
Debit: Accumulated Depreciation     $15,000
Debit: Loss on Sale of 2016 Car         $ 2,000
Credit: Old 2016 Toyota RAV4                                 $25,000
Credit: Cash                                                                $17,500 ($25,500 - $8,000 trade-in)

We’d also start the depreciation for the new car.

New Car Loan

Most often, a new car purchase will be financed, so we have a new liability to record too. We’ll need to get a copy of the loan documents from you and an amortization schedule of the payments. Let’s say you made a ten percent down payment with no trade-in. Here’s how that would look:

Debit: 2019 Toyota RAV4                 $25,500
Credit: Cash                                                                $2,550
Credit: Toyota Loan                                                   $22,950

Then, each time you make a monthly payment, the amount will need to be split between principal and interest and those amounts will need to change each month.

Debit: Interest Expense                      $390
Debit: Toyota Loan                             $ 60
Credit: Cash                                                                $450

We left out a few trade secrets just to keep it intriguing. There are a lot of other numbers on a car purchase: taxes, licenses, warranties, add-ons, fees, and more. Some of these can be directly expensed, while others need to be included in the value of the asset. So if you’re happy that we’ll take care of this for you, we’re happy to do so.

Let us know if you purchase an asset this summer so we can get it booked right for you.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Buying a Car or Truck for Your Business? Subscribe here: [link]

Get a behind-the-scenes sneak peek of how we record your new car purchase properly on your books: [link]

Business Tip: There are a lot of numbers on a car purchase: taxes, licenses, warranties, add-ons, fees, and more. Some of these can be directly expensed, while others need to be included in the value of the asset. [link]

The payment price of your new car on your sales contract is the number used to record your new asset on your balance sheet. [link]

If you traded in a vehicle that is on your books, adjustments will have to be made to your books so that, effectively, your old vehicle is eliminated from your balance sheet. [link]

Curious about how the car you just purchased will be recorded in your books? Find out more here: [link]

Just purchased a new vehicle for your business? Here’s a quick breakdown of how we’d record your new asset in your books: [link]

Buying a Car or Truck for Your Business? Sign up for our newsletter: [link]

Your New Hire Checklist

Thu, 11 Apr 2019 01:29:55 GMT

BizBoost NewsVolume 8, Issue 21
For distribution 4/8/19; publication 4/11/19
Your New Hire Checklist

Hiring a new employee is a big accomplishment in any small business, and there are a lot of steps involved, too. Here’s a handy checklist to help you stay organized when you bring that new hire on board.

First things first, the legal and accounting items:

Signed employment agreement, typically an offer letter. There may also be a supplemental agreement outlining employee policies.
Payroll documents include:
- IRS form W-4
- Form I-9
- Copy of employee’s government-issued ID
Most states require a new hire report to be filed; sometimes your payroll system vendor will automatically file this for you.
Notify your workers comp insurance carrier.

Next, it’s time for employee benefits enrollment:

Health insurance
401K
Any other benefits you provide
Provide the employee with the holiday schedule
Explain their PTO and vacation if not already explained in the offer letter

Set your new employee up for success with the right equipment:

Desk, chair, lamp, other furniture
Uniform
Tools
Coffee mug, refrigerator shelf
Phone
Truck, keys
Computer, monitor, mouse, keyboard, power strip, floor mat
Office keys, card entry, gate remote, parking assignment
Filing cabinet, keys
Tablet
Forms
Office supplies
Cooler, other supplies

Your new employee may need access to your computer software systems:

Employee email address
Any new user IDs and password for all the systems they will need to access
Document access

How will your new employee learn the ropes?

Set up training
Assign a buddy

Hopefully, this list will give you a start toward making your employee onboarding process a little smoother.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Your New Hire Checklist Subscribe here: [link]

Planning on hiring a new employee? Stay organized with our handy new hire checklist: [link]

Business Tip: When hiring a new employee, make sure you remember to notify your workers compensation insurance carrier. [link]

Set your new hire up for success with the right equipment. [link]

Make sure your new hire isn’t left to figure things out on their own. Set up training and assign a buddy so that they can learn the ropes. [link]

Never miss a step again while onboarding a new employee. Stay organized with our employee onboarding checklist. Find out more here: [link]

Want to make your employee onboarding process a little smoother? Here’s a new hire checklist to help you stay organized: [link]

Your New Hire Checklist Sign up for our newsletter: [link]

Beyond the Books: The World of Accounting

Mon, 25 Mar 2019 18:48:51 GMT

BizBoost News
Volume 8, Issue 20
For distribution 3/25/19; publication 3/28/19

Beyond the Books: The World of Accounting

In small business, accounting refers to a set of tasks that revolve around maintaining a general ledger – your books -- and preparing financial statements. Beyond small business accounting, there are many more aspects to accounting. In this article, we’ve prepared a glossary of accounting terms so you can discover the larger world of accounting.

Cost accounting. This type of accounting looks at the cost of items for sale. It’s especially useful in manufacturing, construction, or even restaurants where dozens or even hundreds of components are purchased and assembled to make the items that are for sale. Cost accountants account for and evaluate these costs to determine when they are too high or low and need to be repriced or purchased in a different way.

Cost accounting can be applied to small businesses to help them with pricing, determining breakeven points, controlling costs, and budgeting.

Government accounting. Government accounting is simply accounting that’s done for government entities. Government accountants are concerned with maintaining government regulations as well as learning a different way of keeping books.

Nonprofit accounting. Nonprofit accounting is unique to nonprofit organizations in that they often need to track and mark specific donations, manage grants and meet reporting requirements, fulfill public disclosures and reporting, and maintain a fund accounting process.

Financial accounting. Financial accounting is the preparation of financial reports for external use and includes providing financial statements.

Attest. Attest accounting is where a CPA goes through a process of verifying financial reports of a business to interested third-parties, such as banks and the public. The three main services in this area include compilations, reviews, and audits. Only a CPA can perform these services.

Fraud or forensic accounting. A specialty role in accounting, forensic accountants can help a company that has been the victim of fraud. There are also services available to help reduce the possibility of fraud.

Tax accounting. Tax accounting can be many things: the preparation of federal and state income tax returns for businesses, individuals, and other entities like estates and trusts; state and local tax assistance with collection, filing, remittance, and compliance; franchise tax support; and payroll tax collection, filing, and payment. There are more, but these are the big ones.

Budgeting. Making a revenue and spending plan is an important accounting function.

Internal auditing. Large companies have internal audit departments that maintain checks and balances for the company. In small companies, having someone in charge of monitoring internal controls would be the equivalent function.

Accounting systems. Some accountants are technology-savvy, and this type of accountant can help solve technology issues, integrate accounting system modules, and streamline workflow.

Fiduciary accounting. A fiduciary is someone legally responsible for financial responsibilities in an organization. Fiduciary accounting typically refers to accounting for trusts, but can have a much broader meaning.

Public accounting. Public accounting is practiced by employees in a public accounting firm, which is one that serves many businesses with varying accounting needs. This is opposed to private or industry accounting where an accountant goes to work for one company in their accounting department. Public vs. industry accounting is really referring to an accountant’s career experience.

Managerial accounting. This type of accounting focuses on internal numbers and how the organization can reach its goals. It’s broader than cost accounting, but there is an overlap. Accountants who serve in an advisory capacity to businesses will focus on this area.

Did we get all of the terms you might be wondering about? If not, ask us, and we’ll add it here.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Beyond the Books: The World of Accounting Subscribe here: [link]

Are you familiar with the larger world of accounting outside of small business accounting? [link]

Business Tip: Cost accounting can be applied to small businesses to help them with pricing, determining breakeven points, controlling costs, and budgeting. [link]

Managerial accounting focuses on internal numbers and how the organization can reach its goals. It’s broader than cost accounting, but there is an overlap. [link]

Nonprofit accounting is unique to nonprofit organizations in that they often need to track and mark specific donations, manage grants and meet reporting requirements, fulfill public disclosures and reporting, and maintain a fund accounting process. [link]

For small businesses, accounting might refer to a set of tasks that revolve around maintaining a general ledger – your books -- and preparing financial statements. Outside of small businesses, accounting could include many more aspects. Find out more here: [link]

Are you only familiar with small business accounting? Discover the larger world of accounting with this handy glossary: [link]

Beyond the Books: The World of Accounting Sign up for our newsletter: [link]

5 Ways to Speed Up Your Cash Flow

Mon, 11 Mar 2019 18:47:47 GMT

BizBoost News
Volume 8, Issue 19
For distribution 3/11/19; publication 3/14/19

5 Ways to Speed Up Your Cash Flow

One of the biggest challenges for small businesses is managing cash flow. There never seems to be enough cash to meet all of the obligations, so it makes sense to speed up cash flow when you can. Here are five tips you can use to get your cash faster or slow down the outflow.

1. Stay on top of cash account balances.

If you’re collecting money in more than one account, be sure to move your money on a regular basis when your balances get high. One example is your PayPal account. If money is coming in faster than you’re spending it, transfer the money to your main operating account so the money is not just sitting there.

2. Invoice faster or more frequently.

The best way to smooth cash flow is to make sure outflows are in sync with inflows. If you make payroll weekly but only invoice monthly, your cash flow is likely to dip more often than it rises. When possible, invoice more frequently or stagger your invoice due dates to smooth your cash balances.

Take a look at how long it takes you to invoice for your work after it’s been completed. If it’s longer than a few weeks, consider changing your invoicing process by shortening the time it takes to send out invoices. That way, you’ll get paid sooner.

3. Collect faster.

Got clients who drag their heels when it comes to paying you? Try to get a credit card on file or an ACH authorization so you’re in control of their payment.

Put a process in place the day the invoice becomes late. Perhaps the client has a question or misplaced the bill. Be aggressive about following up when the bill is 45, 60, and 90 days past due. Turn it over to collections quickly; the older the bill is, the less likely it is to get paid.

4. Pay off debt.

As your cash flow gets healthier, make a plan to pay off any business loans or credit cards that you have. The sooner you can do this, the less interest expense you’ll incur and the more profit you’ll have.

Interest expense can really add up. If you have loans at higher interest rates, you might try to get them refinanced at a lower rate, so you won’t have to pay as much interest expense.

5. Reduce spending.

You don’t always have to give up things to reduce spending. Look at your expenses from last year and ask yourself:

What did you spend that was a really great investment for your business?
What did you spend that was a colossal mistake?
What do you take for granted that you can cut?
Where could you re-negotiate contracts to save a little?
Where could you tighten up if you need to?

Managing cash flow is always a challenge, and these tips will help give you a little cushion to make it easier.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 5 Ways to Speed Up Your Cash Flow Subscribe here: [link]

Want to find out how you can speed up your business’s cash flow? [link]

Business Tip: If you’re collecting money in more than one account, be sure to move your money on a regular basis when your balances get high. [link]

When possible, invoice more frequently or stagger your invoice due dates to smooth your cash balances. [link]

There never seems to be enough cash to meet all of the obligations, so it makes sense to speed up cash flow when you can. Find out more here: [link]

Having problems managing your cash flow and want a little cushion to give you some leeway? Find out how you can speed up your cash flow here: [link]

5 Ways to Speed Up Your Cash Flow Sign up for our newsletter: [link]

A Report Card for Your Business Financials

Mon, 25 Feb 2019 20:04:25 GMT

BizBoost News
Volume 8, Issue 18
For distribution 2/25/19; publication 2/28/19

A Report Card for Your Business Financials

Do you remember the days when you got a report card from school? Now that you have a business, your business has grades as well. But it’s up to you to calculate them. Here are some grades you can compute for your business to give it a report card of its own.

Financial Grades

How successful is your business from a financial standpoint? These financial ratios can help you give yourself a grade.

Return on equity

This ratio measures profitability as it relates to the investment or money you have tied up in your business. The formula is net income / average equity. An ROE of 15 percent or more is an “A” for your business report card.

Return on assets

This ratio measures profitability as it relates to your business assets. The formula is net income / total assets. An ROA of five percent or more is an “A” for your business report card.

Asset turnover

This ratio measures efficient use of your business assets. The formula is sales / total assets. This number should be high for low margin businesses and low for high margin businesses.

Profitability Grades

How profitable is your business? You might know your bottom line number, but there’s more to it.

Gross profit margin

This ratio measures the financial health of a company as it relates to how much money is available to cover overhead. Calculate it as follows: (revenue – cost of goods sold) / revenue.

The value will be different depending on what industry you’re in, but some say a range of 25 to 35 percent is normal for small business.

Net profit margin

Net profit margin measures how profitable your business is in relation to the amount of sales you have. As an example, a business that can make $50K in profits on $500,000 in revenue is more healthy than one that can make $50K profits on $3 million in revenue. The formula is net income / total sales, and although it depends on the industry, a net profit margin over 10 percent is considered an “A.”

Report cards were important in school, but they’re even more important in business. If you’d like us to set up one for your business, let us know.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: A Report Card for Your Business Financials Subscribe here: [link]

Do you have a business financials report card set up for your business? [link]

Business Tip: Report cards were important in school, but they’re even more important in business. Calculate business grades to see how your business is doing financially. [link]

A return on equity of 15 percent or more is an “A” for your business report card. [link]

Some say a range of 25 to 35 percent for gross profit margin is normal for small business. [link]

Grade your business on different factors to see how well your business is doing financially. Find out more here: [link]

Does your business have straight A’s on its report card? [link]

A Report Card for Your Business Financials Sign up for our newsletter: [link]

Money and Marriage

Mon, 11 Feb 2019 20:05:47 GMT

BizBoost News
Volume 8, Issue 17
For distribution 2/11/19; publication 2/14/19

Money and Marriage

One of the biggest things that can cause fights in a marriage is money. No matter where you are in a relationship, it’s a good idea to discuss these major money topics so you’ll know where you stand.

Show me the money: Combine or keep separate or both

One of the best ways to avoid conflict is to put your money into three separate piles: yours, your spouse’s, and a joint set of accounts. In this arrangement, each of you has control over some money that is all your own. The household spending will then come out of the joint account, and you both will make contributions to it on a regular basis.

As a couple, you’ll need to discuss who will pay for what as well as what your regular contribution will be to the joint account. This is no small discussion. The more thorough you are, the less conflict you’ll have over money.

One spouse or partner will normally handle the joint finances, and it’s typically the person with the most accounting knowledge. However, you both should have access to this account in case of emergency.

Savings and future purchase goals

Do you have goals about upcoming large purchases? These might include:

A home purchase or improvement
Children’s education
Health care needs
Saving for retirement
A car purchase
A second home purchase
A vacation
Another item such as a boat, furniture, technology gadgets, a plane, or something else
A nest egg or cushion

If so, calculate how much you need and make a plan to set aside the money you need in the time frame you agree on.

Spending

Do you like to spend more than your spouse? Or is it the other way around? When money is flowing, there is usually no problem. When money is tight, that’s when the problems come in.

When there are conflicts in the area of spending, the best course is to focus on priorities. If you can agree on your priorities and goals, it can often shift spending habits.

Budget

You may want to set a budget to stick as close as possible to expected spending limits. Start by recording current spending in these areas, and then agree on the amounts you want to spend in the future.

Rent or mortgage payment
Utilities, including electric, gas, water, garbage, phone, internet, cable
Food and supplies, including grocery, kitchen items, liquor, and eating out
Entertainment, including travel, vacations, local events, holiday decorations, Netflix subscriptions, tech gadgets, books, etc.
House maintenance including repairs, cleaning, lawn care, appliances, and decorating
Automobile, including gas, insurance, licenses, and maintenance
Clothing and accessories, including dry cleaning
Health care, including pharmacy, doctor’s visit, and HSA contributions
Personal care, such as haircuts, nail care, etc.
Tuition and/or education expenses
Contribution to retirement and savings accounts
Charitable contributions
Taxes, including federal, state, local, school, and property
Paying down credit card or student loan debt

Retirement

What does retirement look like to both of you? Having this conversation will be enlightening. Know that dreams and goals can change over time as retirement approaches.

You’ll want to have an idea about what you’d like to spend during your final years so that you can make plans to start accumulating that wealth now. The sooner you start, the more years you have to build up your retirement assets.

Monitoring your progress

Keep an eye on your account balances to make sure everything is as it should be. Review bank and brokerage account statements and/or your budget once a month or at least once a quarter so there are no surprises or trends that sneak up on you.

When you reach your goals, reward yourself. Managing money is hard work, and you deserve to pat yourself on the back when a goal is achieved. If there is anything we can do to help you make your financial dreams come true, please reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Money and Marriage Subscribe here: [link]

Which major money topics you should discuss in your relationship? Find out here: [link]

If you and your partner want to make a large purchase, calculate how much you need and make a plan to set aside the money you need in the time frame you agree on. [link]

One of the best ways to avoid conflict is to put your money into three separate piles: yours, your spouse’s, and a joint set of accounts. [link]

When conflicts arise in your relationship due to spending, the best course of action is to focus on priorities. If you can agree on your priorities and goals, it can often shift spending habits. [link]

No matter where you are in a relationship, it’s a good idea to discuss these major money topics so you’ll know where you stand. Find out more here: [link]

Are you married or in a relationship and want to find out how to avoid conflicts that arise from money topics? Check out our marriage and money tips here: [link]

Money and Marriage Sign up for our newsletter: [link]

10 Ways to Boost Your Business Revenue for 2019

Mon, 28 Jan 2019 20:08:07 GMT

BizBoost News
Volume 8, Issue 16
For distribution 1/28/19; publication 1/31/19

10 Ways to Boost Your Business Revenue for 2019

The start of a new year also means that it’s the perfect time to revisit old business strategies from last year so that you can maximize your revenue for 2019. If your financial numbers were fantastic last year, that’s great! Keep the strategies that worked for you and cut the ones that didn’t.

If your financial numbers weren’t amazing last year, or maybe you’re just interested to see how you can increase your revenue, we have you covered. Here are 10 ways you can boost your revenue this year:

1. Revisit your current prices and make adjustments as necessary.

Many people will tell you that increasing your prices will increase your profits, but that’s not necessarily true. Increasing your prices by a small amount might increase your profits without turning away existing customers, but make sure you research your competitors’ prices and adjust based on what makes sense in your market.

2. Bundle your services or products together.

Make your products or services more attractive by bundling them together and pricing them at a better deal than purchasing the services or products separately. Customers that only want one particular product or service should still be able to purchase the product or service à la carte, but offering different packages of increasing value makes it much easier to upsell to clients and increase your business revenue.

3. Offer free gift with purchase.

Tacking on a complimentary or free service to your products or services could be the small push needed to close sales. Even better, you could add a complimentary or free service to your highest-quality bundle. As an example, the cosmetics industry has been doing this for decades.

4. Start a new product or service line.

If you’re limited to just a few products or services, it’s time to expand. If you mow lawns, offer a leaf collection or snow removal service. If you sell shoes, add socks. If you manage a restaurant, consider offering alcohol. Expanding the scope of what you’re selling will provide you with additional revenue.

5. Expand your geographic reach.

If you’re still only offering services and products locally, consider expanding your reach, especially because the internet is so readily available nowadays. Think about which services you can offer virtually; some may require you to invest in cloud-based delivery systems. If you only sell products at a physical location, ecommerce is a huge industry and you could definitely increase revenue by having a storefront online.

6. Learn to say “no” to bad clients.

This may seem counterintuitive, but learning to turn away bad clients is really important. When clients are ungrateful, unreasonable and just take up too many of your resources, you have to realize that they are unprofitable. By turning them away, you can devote more of your attention to building relationships with your best customers and creating new, profitable opportunities.

7. Make your online presence known.

Everyone uses search engines and social media to find the right business to serve their needs, so make sure you can be found online. Create a website for your business and make sure your have business pages on social media platforms like Facebook, LinkedIn and Twitter. You’ll have to develop some marketing strategies and optimize your site to rank high, but, when done right, these channels can drastically impact the amount of revenue you get.

8. Manage your online reputation.

When you have many good reviews, your credibility goes up and your business is more appealing to potential clients and customers. If your clients leave you an amazing testimonial, it’s a good idea to ask them to post it online as well—especially on Yelp, your Facebook Business Page, and Google Reviews. On the other hand, negative reviews will look bad to potential clients and can negatively impact your revenue, so make sure you respond appropriately to the review and show potential clients that you care about getting things right.

9. Encourage customers and clients to sign up for a continuity program.

Do you have loyal customers? Reward them by offering a membership or continuity program with VIP benefits. Retail, restaurants, and service businesses can set up privileges like faster service, discounted prices, and frequent purchase rewards that many consumers will pay a small monthly fee for.

10. Encourage customer referrals by building and nurturing customer relationships.

Connect with clients and build strong relationships through effective communication, providing exceptional service, getting feedback, addressing concerns, and showing appreciation. Doing so can increase repeat customers, customer referrals and your business revenue.

If you’re looking to boost your business revenue this year, definitely give these strategies a try.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 10 Ways to Boost Your Business Revenue for 2019 Subscribe here: [link]

Want to boost your business revenue this year? [link]

Business Tip: Make your services more attractive by bundling them together and pricing them at a better deal than purchasing the services separately. [link]

Adding a complimentary or free service to your products or services could what you need to close more sales. [link]

You can boost your business revenue this year by implementing these 10 strategies. Find out more here: [link]

How can you boost your business revenue for 2019? Find out here: [link]

10 Ways to Boost Your Business Revenue for 2019 Sign up for our newsletter: [link]

How to Save More in 2019

Tue, 15 Jan 2019 02:14:43 GMT

BizBoost News
Volume 8, Issue 15
For distribution 1/14/19; publication 1/17/19

How to Save More in 2019

Many people in their retirement years have regrets about not saving more during their earning years, but you don’t have to be one of them. All you need to do is be realistic and proactive about saving. It’s all about paying your future self.

Circumstances can arise that can erode savings you hoped would be there for retirement. Some of those events include not being able to work due to poor health or a bad job market, unanticipated hospital bills, a divorce, overestimating Social Security benefits, bad investments, procrastination, and simply not realizing how much you need to live on.

The good news is you can prevent future regrets by making a strong savings plan now. As a small business owner, you may not have a retirement plan, so it’s essential that you create one for yourself. You earn an income today. Put some of that income toward paying your future self, and pay that “bill” first each month or each paycheck.

To be proactive and build as much savings as possible, take these steps:

Increase your financial skills by learning how to fund your retirement, including all that traveling you’d like to do.
Take care to manage your investment risk and be realistic about investment returns. In good markets, purchase rather than rent or lease so you are building an asset.
Put as much aside as you can, and try living just below your means.
If you do have periods where you are out of work, try living frugally until your income is back to normal.
Optimize your business profits and apply some of them to your savings plan.
Minimize taxes where possible so you can keep more of what you make.
Make everything work twice as hard for you:
- Get credit cards with loyalty programs.
- Sign up for frequent customer programs to earn points.
- Make sure your bank is giving you the best deal on interest.
Sell unused belongings on eBay and put the money in savings.
Cancel used subscriptions and memberships for both your personal and business needs and move the saved money to savings.
Periodically reach out to vendors to get a better deal on the expenses you incur. This could be for phone plans, utilities, and any other routine expense. Put the difference saved in savings.
Select cars and trucks with good gas mileage and also high resale value. Consider that using Lyft or Uber may be cheaper than maintaining a car, depending on how much you drive. Put the difference in savings.

There are hundreds more ways to save more, and these will get you started in the right direction for 2019.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Save More Subscribe here: [link]

Want to find out how you can save more in 2019? [link]

Business Tip: Put some of the income you earn now toward paying your future self, and pay that “bill” first each month or each paycheck. [link]

One way to increase your savings is to put as much of your income aside as possible and live right below your means. [link]

Minimize taxes where possible so you can keep more of what you make. [link]

Prevent future regrets by making a strong savings plan now. Find out more here: [link]

Want to learn how you can save more for retirement? Find out here: [link]

How to Save More Sign up for our newsletter: [link]

What Is Reputation Management?

Tue, 01 Jan 2019 02:17:03 GMT

BizBoost News
Volume 8, Issue 14
For distribution 12/31/18; publication 1/3/19

What Is Reputation Management?

Reputation management is a relatively new area within marketing. In a way, it’s similar to digital public relations; it’s the management of a company’s reputation online. There’s also a customer service component to reputation management.

Unlike public relations workers before the internet came along, today’s reputation managers must deal with what customers and other stakeholders publish publicly on social media, blogs, directories, and many other locations online.

A large part of the reputation management function is to monitor and reply to reviews. Company reviews are available on hundreds of sites. The most common places to look for reviews are Yelp, Google Business, Bing, Amazon, and shopping carts.

If a company receives a positive review, thanking the customer in a response is a nice gesture and recognizes their time spent writing the review. It also reassures others that the company is paying attention to customer feedback.

If the review is negative, swift action should be taken to respond, to apologize publicly, and to take the conversation to a private communications channel such as email or direct messaging. Customer service should get involved to resolve the issue quickly and satisfactorily. In some cases, posting a follow-up response to ask the client if the issue has been resolved is appropriate.

Companies should monitor more than just customer reviews. Sites like Glassdoor allow employees to post job satisfaction reviews for prospective workers. Companies in industries with chronic talent shortages will want to allocate resources to monitor these sites effectively.

Reputation management is not all about reviews; it’s also about mentions. Whenever your company name, CEO, or brand names are mentioned, a reputation manager should know about it.

There are now several apps that perform reputation management monitoring so that you’re alerted quickly to reviews or mentions. A very quick free option is to use Google Alerts to scour the web for company name mentions. Many of these apps also help a business garner more reviews and optimize them to improve their reputation.

Whether your business needs to worry about reputation management depends on many factors, but hopefully this overview will give you an idea of what’s possible in this space.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: What is Reputation Management? Subscribe here: [link]

Interested in how to handle online reputation? Find out more: [link]

Biz Tip: Thanking a customer for a positive review reassures others that the company is paying attention to feedback. [link]

Swift action should be taken to rectify the situation for negative reviews. [link]

Quickly get alerted to reviews or mentions by one of several reputation management monitoring apps. [link]

Manage your online reputation by responding to customer mentions and feedback. Find out more here: [link]

How should you respond to positive and negative reviews online? [link]

What is Reputation Management? Sign up for our newsletter: [link]

Business Planning Made Easy for 2019

Fri, 21 Dec 2018 02:18:06 GMT

BizBoost News
Volume 8, Issue 13
For distribution 12/17/18; publication 12/20/18

Business Planning Made Easy for 2019

2019 is right around the corner, which makes today the perfect time to think about your business goals and where you want to be one year from now. As year-end wraps up, you’ll soon know your financial numbers for 2018. You’ll then be able to evaluate how you did and map out a new plan for 2019.

If you’re like many small business owners, you may have started your business without a business plan. Most businesses don’t need a long 20-page document that will just gather dust on a shelf. But you might want to consider putting together a short, 1- to 2-page concise document that includes the basic components of a typical business plan: mission, vision, strategies, and objectives.

A mission statement describes what the company is in business to do. And while you could simply state a mission similar to “Our mission is to sell our products and services,” you may want to think bigger than that in terms of how you want to be known or to impact more than your customers.

A vision statement describes your company’s future position. It’s what you aspire to be. It could again be, “Our vision is to sell more products and services than any other business.” Or it could be more inspiring and uplifting.

Your business strategies support how you’ll get from where you are to what is stated in your mission and vision statements. While there may be many ways to accomplish your mission and vision, strategies are the approaches you’ll take to get there.

Goals are measurable destinations with a timeline that are created from your strategies. Objectives finally get down to the nitty gritty and state the tactics and action plans you need to execute to put all of this work into play.

Each of these items can be written out on a few lines, taking up all together no more than a few pages. The benefits of having a concise business plan are many: if you think of an idea you want to do, you can check the plan to make sure your idea falls under your vision, mission, and strategies that you’ve laid out for the year. If it doesn’t, then you’ll know that your idea would take you off track from your plan, and you know how easy that can happen these days with all of the distractions and options available to us.

You may want to add additional sections to your plan depending on your strategies. If you plan to launch a new product or execute new marketing strategies, you might want to add a Market Summary section. If you seek new funding, you might want to have a section on funding options. With business planning, it makes sense to do what’s relevant, and nothing more or less.

We wish you the very best in 2019, and if we can help you with the financial portion of your business planning, please reach out.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Business Planning Made Easy Subscribe here: [link]

Why should you write a business plan for 2019? Find out more: [link]

Biz Tip: A business plan can be a short, concise document that includes a mission statement, a vision statement, business strategies, and objectives. [link]

There are many benefits to having a concise business plan, such as being able to keep track of ideas that align with the plan. [link]

Some business plans might need a Market Summary section if you want to focus on customer acquisition, [link]

Stay on track with a simple business plan. Find out more here: [link]

How can you write a business plan to help you stay on track in the new year? [link]

Business Planning Made Easy Sign up for our newsletter: [link]

Marketing by the Numbers

Tue, 04 Dec 2018 02:18:50 GMT

BizBoost News
Volume 8, Issue 12
For distribution 12/3/18; publication 12/6/18

Marketing by the Numbers

Do you know if your marketing efforts are paying off? More importantly, do you know which marketing campaigns and channels are profitable and which are losing money?

Marketing is one of the toughest areas to calculate return on investment, and one of the reasons is because customers may have had contact with your company in multiple ways before they make a purchase. Other reasons such as a lack of systems are more easily solved and can give you valuable information that you can make smart decisions with.

One main goal of marketing is to acquire leads that will hopefully turn into buying customers and even repeat customers. To start measuring your marketing efforts, we need to find out where those leads are coming from and measure which ones became your customers. That means we need to develop a system that tracks a customer from lead source to sale.

The hard part is that some of this needs to be done outside the accounting system. The good news is that there are many tools and analytics available to help in this process.

One of the first things to do if you don’t already have it set up is to record the lead when they enter your sales process. Enter basic information about them in your CRM (customer relationship management system), and be sure to ask them how they found out about you. This will help you track the lead back to the campaign or channel that they came in on. Once they’ve made a purchase, you can connect the lead to the customer record and track revenue by marketing source.

If your leads come in digitally, there are many automated tags you can set up to track where they originated, whether it was from the web site, a particular web page, a social media account or a link from an email you sent out.

An important statistic for businesses is cost per lead, how much it costs to generate one lead for your business. The cost will vary by channel or marketing source. For example, someone coming from your website will cost less than someone coming from social media in most cases.

Once you know how many leads to generate to make a sale, you can start calculating what your marketing budget should look like. More importantly, you’ll be able to forecast your revenue more accurately, too.

While numbers are probably the last thing you think about when you’re doing your marketing, they can be very effective for your bottom line. There are many metrics beyond cost per lead that would be valuable to measure as well. Here are just a few of them:

Number of leads (in total or per channel)
Number of press mentions
Number of direct mail pieces sent out
Number of email subscribers
Number of social media connections per platform
Number of posts sent, number of shares, number of comments
Total web visitors, new and returning
Google rankings for keywords
Number of customer reviews per site, ratio of positive to negative reviews

You might not think of accountants when you are doing your marketing, but we encourage you to think about the “numbers” part of marketing, the financial side. And as always, if you want help developing these processes and metrics, please reach out.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Marketing by the Numbers Subscribe here: [link]

Want to efficiently measure your marketing efforts? Find out more: [link]

Biz Tip: Recording the lead when they enter your sales process can ultimately help you track your marketing source. [link]

There are many automated tags you can set up to track where digital leads originated. [link]

Measuring cost per lead and how many leads generate a sale will help you calculate your marketing budget and forecast your revenue. [link]

Measuring numbers can be incredibly effective for your marketing. Find out more here: [link]

Why should you measure numbers in marketing and how can it benefit you? [link]

Marketing by the Numbers Sign up for our newsletter: [link]

Being Grateful

Tue, 20 Nov 2018 02:20:19 GMT

BizBoost News
Volume 8, Issue 11
For distribution 11/19/18; publication 11/21/18

Being Grateful

With holidays approaching, this is the perfect time of year to take a moment and reflect on all of the things we are grateful for. Being grateful may sound a bit trite, but it’s also the number one, hands down, fastest way to bring more positivity and less negativity into your work and life.

Acts of gratitude are selfless and done unconditionally. You can use gratitude as a private exercise of reflection or you can express your gratefulness to show people that they are appreciated.

You don’t have to wait to feel gratitude; you can invoke it proactively.

If you don’t have a gratitude practice, consider starting one. Science has gotten involved in studying gratitude, especially in the field of positive psychology, and the benefits to health and well-being are enormous. It can benefit your business, too, when you show appreciation for business partners, employees, customers, and vendors.

Here are five easy ways to bring more gratitude into your work and life:

Think of five clients you can send thank you notes to. You can write them by hand or send a greeting card with a thank you message.
On your customer service email templates, add a line before the closing that says, “We appreciate your business.” It does make a difference.
Quick, right now, think of five things you are grateful for and list them off the top of your head. After you’re done, you should feel a little bit happier than you did a few minutes ago. Use this tool after you feel a negative emotion to move you back into positivity faster.

1. ________________

2. ________________

3. ________________

4. ________________

5. ________________

4. Find part of your day that you don’t love, such as your commute to work. Change it to your gratitude commute, finding things along the way to be grateful for. You might be surprised how great you feel when you arrive at work.

5. Let one of your employees know that you’re grateful for the work they do for you. You can do this verbally, with a note, or with a gift.

When you practice gratitude, you can’t help but feel happy for the things you have in your life. Try these five things on a regular basis to bring more gratitude and positivity into your work and life.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Being Grateful Subscribe here: [link]

Why practice gratitude and how does it benefit both you and your business? Find out more: [link]

Biz Tip: Being grateful is the fastest way to bring more positivity into your work and life. [link]

You can use gratitude as a private or public exercise of reflection. [link]

Showing appreciation for business partners, employees, customers, and vendors can benefit your business. [link]

Improve your work and life by practicing gratitude. Find out more here: [link]

How can you bring more gratitude into your work and life? [link]

Being Grateful Sign up for our newsletter: [link]

Defining Blockchain

Tue, 06 Nov 2018 02:25:05 GMT

BizBoost News
Volume 8, Issue 10
For distribution 11/5/18; publication 11/8/18

Defining Blockchain

Blockchain is a term that has been bantered about quite a bit when referring to the future of accounting technology. While its impacts are primarily long term in nature, let’s take a brief look to see what everyone is talking about.

Blockchain is a technology that can store transactions. Some people have referred to it as a digital ledger. Unlike your current accounting books, transactions recorded using blockchain technology are public. This digital spreadsheet of transactions or records is copied across thousands of servers so that there is no single point of failure. It’s a decentralized, distributed, and public digital ledger.

The blockchain ledgers are updated constantly as new records are added. They are also reconciled constantly. Once added, the records cannot be altered retroactively. This feature has many implications for auditing in that many records won’t need to be validated the old-fashioned way because blockchain is self-auditing. Auditors will still need to validate the non-digital components of a transaction such as physical inventory counts.

Prior to 2016, blockchain was originally referred to as block chain, where the blocks are the list of records or transactions. While the records are public, they are protected through cryptography. Each block includes cryptographic code from the previous block that keeps the entire chain of data safe and verified.

Blockchain is then a way for two parties to safely record their transaction permanently and with verification. While bitcoin is the most common current use of blockchain technology, many developers are working on new applications. Development started heavily in 2017, so it remains to be seen which applications will take off and which will die.

Blockchain’s uses in the future will be many:

Banking is the most obvious application, and right now the focus is on international transfers.
Stock trading.
Smart contracts. This concept is a huge part of what blockchain could be used for. Smart contracts are economic actions using blockchain that can be recorded without human interaction. They could initiate bill payments after goods have been received and after checking that there are funds available.
Elections.
Legal transactions, such as land titles.
Medical records, so that there is no more filling out of forms in each doctor’s office.

Blockchain in the future may eliminate the double-entry bookkeeping system that we have now. Instead of each person keeping their own set of records, companies will write their transactions into a public blockchain ledger. This will reduce the cost of bookkeeping in the long term. But for this to happen, much development must be done to standardize and optimize the financial system. Many accounting professionals are working today toward that goal, which is many years away.

For now, the biggest implication to realize for a blockchain future is that personal reputation will become incredibly important. Blockchain systems eliminate the intermediary so that you are doing business with other people in a peer-to-peer environment. Identity protection as well as reputation will become essential. Blockchain is also likely to take off first in countries where there is a lot of corruption and/or corporations are not trusted.

Blockchain may not impact your life today, but it’s definitely something to watch on the horizon.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Defining Blockchain Subscribe here: [link]

Interested in blockchain and how it might affect you? Find out more: [link]

Biz Tip: Blockchain is a decentralized, distributed, and public digital ledger, unlike traditional accounting books. [link]

In the future, blockchain may eliminate the current double-entry bookkeeping system and reduce the cost of bookkeeping in the long term. [link]

Because blockchain systems eliminate the intermediary and you are doing business with other people in a peer-to-peer environment, personal reputation will be incredibly important. [link]

Blockchain may impact your future. Find out more here: [link]

What is blockchain and will it change the accounting industry? [link]

Defining Blockchain Sign up for our newsletter: [link]

Your Perfect Work Day

Tue, 23 Oct 2018 01:27:40 GMT

BizBoost News
Volume 8, Issue 9
For distribution 10/22/18; publication 10/25/18

Your Perfect Work Day

How well do you love the way you spend your typical workday? What would a typical workday look like if you had absolutely no constraints? Here’s a fun exercise to get you thinking about your future and how you can make small changes in your current day to move it toward your ideal day.

Get comfortable and begin jotting out what your ideal day looks like. Start with what you do before you get to work. How do you start your day? With a workout or breakfast or something else? What does breakfast consist of? Where are you eating? What do your surroundings look like?

How do you get to work? What is your commute like? List the sights, sounds, smells. Once you get to work, what do you do first? Will you spend time on the phone? With whom? At the computer? Do you go somewhere?

Do you get a nice break for lunch? Write it all down in detail, and continue until your post-workday routine. Who are you with? Where are you? What do you do?

Here’s a partial sample:

“Lunch with my two friends at our favorite Mexican restaurant on the beach. We laugh a lot, share stories, and part with hugs and handshakes. After lunch, I work on my favorite work project, which challenges me to think about how to help my employees gain new skills. While I work, I listen to my favorite music CD. In a few hours, I am ready for a stretch break and walk outside to water the plants. After break, I return calls, talking with my clients and catching up on how to best serve them. …”

OK, now it’s your turn. Here are some questions to consider while you do this exercise:

What’s important to you to spend time on?
What’s enjoyable that you would really like to have as part of your daily routine?
What activities will give you a nice balance of accomplishment, relaxation, and socialization, even during work?
What do you need to include in your ideal day to get your needs met?

Change One Thing

Getting to your ideal day can take time. Don’t try to change your whole routine all at once. What one or two things can you pull out of your ideal work day description that you could bring into your current work day to brighten it with happiness? In the description above, this person might block out time to find employee training, go out for lunch instead of eating at her desk, make a new playlist, delegate tasks that are not part of her ideal day, or take more time when returning client calls.

Make gradual changes in your current day to improve it. With each change, you’ll be moving toward the realization of your ideal day. And if your ideal day doesn’t include bookkeeping but your current day still does, we’re here for you.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Your Perfect Work Day Subscribe here: [link]

Want to achieve your ideal work day? Find out more: [link]

Biz Tip: Get comfortable and detail what your ideal day looks like. [link]

Consider activities you enjoy and would want in your daily routine. [link]

Instead of trying to change your routine all at once, change it gradually. [link]

Make small, steady changes to realize your ideal work day. Find out more here: [link]

How can you make your work day be the way you want it to be? [link]

Your Perfect Work Day Sign up for our newsletter: [link]

Training Fido to Fetch More than a Bone

Tue, 09 Oct 2018 01:30:12 GMT

BizBoost News
Volume 8, Issue 8
For distribution 10/8/18; publication 10/11/18

Training Fido to Fetch More than a Bone

While “fetching” might be what some trained dogs can do, accounting systems are getting into the act too. This relatively new feature is called “receipt fetching,” and it’s when an app can retrieve documents directly from the vendors that you do business with so you don’t have to spend so much time on paperwork retrieval.

Apps that can perform receipt fetching can integrate with your accounts and pull invoices into their system. For example, if your business has an account with a utility or telecom company, the receipt fetching app can pull the electricity, water, or telephone bills into your receipt fetching app account and consolidate them.

The benefits are simple. You save time, certainly. But the bigger benefit is you no longer have a monthly deadline to get your documents to your accountant -- at least for all the documents that can be automated in this way. This reduces stress and eliminates minutiae from your day.

Accountants benefit too. No accountant likes to spend their time asking clients for documents over and over again. We know you have better things to do with your time, and we know you probably hate doing the paperwork. Receipt fetching is an easy way to get the job done.

To take advantage of receipt fetching, the first step is to select a receipt-fetching app. A few of the apps to select from include LedgerDocs, ReceiptBank, HubDoc, and Greenback. Some of these apps do receipt fetching only, and others have many more functions.

The second step is to determine which vendor accounts are supported, and to connect with them. Generally speaking, the connection is based on your account credentials, so if those change, the connection will need to be updated. When many of your documents can be pulled into one place, you don’t have to spend time logging into each vendor portal to pull receipts.

If you’re curious about how to benefit from receipt fetching in your business, please feel free to reach out.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Training Fido to Fetch More than a Bone. Subscribe here: [link]

Curious about how to benefit from receipt fetching in your business? Find out more: [link]

Biz Tip: Apps that can perform receipt fetching can integrate with your accounts and pull invoices into their system. [link]

To take advantage of receipt fetching, the first step is to select a receipt-fetching app. Find out more [link]

Save time and reduce stress with receipt fetching. [link]

Retrieve documents directly from the vendors that you do business. Find out more here: [link]

What is receipt fetching and how can you use it in your business? [link]

Training Fido to Fetch More than a Bone. Sign up for our newsletter: [link]

The Concept of Internal Control

Mon, 24 Sep 2018 01:31:55 GMT

BizBoost News
Volume 8, Issue 7
For distribution 9/23/18; publication 9/27/18

The Concept of Internal Control

Internal control is a very special phrase in the accounting profession. Tactically, it’s the set of processes that help a company produce accurate data throughout the organization, follow reporting requirements and laws, and maintain consistency and accuracy in its operations. Strategically, it’s an entirely new way of thinking and doing business.

Internal control helps to reduce organizational risk. A blunt way of putting it is internal control is what you put in place to avoid mistakes, intentional or accidental, and to control accuracy and quality. It impacts every aspect of an organization.

As a small business, you’ll want to be familiar with the concept because it can help you reduce risks you might not realize you have. Here are some practical examples of good ideas that support internal control:

When data is private and secure, provide access only to employees who need to know the data and restrict access of others.
Have someone check that your bank balance matches the reconciled amount in your books, and that someone should be different from the person who does the reconciliation. This is an example of what’s called segregation of duties.
Lock up paper checks and use the missing check number report to make sure none of the stock could be used for nefarious purposes.
Have employees sign in and out equipment that they take home. This is part of asset management.
Write and enforce a hardware and software use policy that includes items like employees should make sure their anti-virus software is active at all times, they should not bring in disks or CDs, and they should not download games or other unauthorized programs. This protects from computer viruses and helps to avoid catastrophic network failures.

There are literally hundreds of internal control procedures that should be implemented in small businesses as they grow into larger businesses.

Internal control is typically a big part of an audit or an attest function in accounting; it determines how many additional procedures an auditor needs to do in order to provide assurances about the reliability of the financial reports. But it’s also just good plain common business sense to implement as many internal control processes as are cost-effective for your business to protect it at the level of risk you’re comfortable with.

If you’d like to discuss the idea of internal control further, please feel free to reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: The Concept of Internal Control. Subscribe here: [link]

Can internal control save your business? Find out more: [link]

Biz Tip: Internal Control can help you reduce risks you might not realize you have. [link]

There are literally hundreds of internal control procedures that should be implemented in small businesses as they grow into larger businesses. [link]

Start implementing internal control by having employees sign equipment in and out if they take it home. [link]

Internal control helps to reduce organizational risk. Find out more here: [link]

Do you have any internal control procedures in place? [link]

The Concept of Internal Control. Sign up for our newsletter: [link]

5 Ways to Make Your Business More Efficient

Mon, 10 Sep 2018 01:33:43 GMT

BizBoost News
Volume 8, Issue 6
For distribution 9/9/18; publication 9/12/18

5 Ways to Make Your Business More Efficient

A great entrepreneur will always be on the lookout for ways to improve their business. Efficiency is a goal everyone wants to achieve when it comes to business because it can translate into less work and more profits. Here are five ways you and/or your staff can become more efficient in your business.

1- Get software-savvy.

Do you use the same software apps day in and day out? If you do, ask yourself how well you really know them? Are you able to just get by or are you a whiz with deep knowledge? If you’re just getting by and spending a lot of time wandering around or undoing things, you may want to take a course in that software.

The deeper our knowledge is in the apps we use every day, the more proficient we can be. This is true of all of your staff as well.

2- Reward new suggestions.

Your staff will be the first to know where there are bottlenecks and hiccups in your processes. Encourage them to speak up when they find something that could be improved. Listen to their ideas and reward the good ones. Implementing ideas from your business’s “front line” will increase its overall efficiency.

3- Watch your time.

How do you spend the bulk of your day? Working on new strategic projects, fighting fires, or a little of both? An honest evaluation of how you spend your time can yield many ideas about what’s going right and what needs work in your business.

Allocate at least an hour a day to work “on” your business instead of in it. That time is the only way your can move your business to the next level. If you’re the CEO, the focus should be more external than internal, more proactive than reactive, and more strategic rather than operational.

4- Avoid “bright shiny object syndrome.”

Are you easily distracted by an email (that you didn’t realize waylaid you into an hour of unproductivity), a web link, or a conversation? It’s crazy-easy to get sidetracked right in the middle of a task these days. It’s also easy to purchase something that looks great without doing your homework.

One way to avoid unnecessary purchases is to get three bids from potential vendors on all major purchases for your business. Make it a procedure so that you’re not lured into fancy marketing and items you might not ever use once you see the fine print.

5- One person’s trash is another’s treasure.

When you start to look around your office, you might be surprised at all the things you haven’t used in a while. Laptops that have been replaced, office supplies that were accidentally double-ordered, those folders you were going to use two years ago for a marketing campaign, even extra desks and chairs that are now empty: all of these items could be recycled to not only free up space but also get you some cash.

Which idea do you like best? Try it next week to improve your business efficiency.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 5 Ways to Make Your Business More Efficient. Subscribe here: [link]

Are there ways you can make your business more efficient? Find out more: [link]

Biz Tip: Allocate at least an hour a day to work “on” your business instead of in it. [link]

Encourage your staff to speak up when they find something that could be improved. [link]

The deeper our knowledge is in the apps we use every day, the more proficient we can be. [link]

One person’s trash is another’s treasure. Find out more here: [link]

Is your business running efficiently? [link]

5 Ways to Make Your Business More Efficient. Sign up for our newsletter: [link]

Should You Have a Financial Dashboard?

Tue, 28 Aug 2018 01:35:20 GMT

BizBoost News
Volume 8, Issue 5
For distribution 8/27/18; publication 8/30/18

Should You Have a Financial Dashboard?

A quick glance is all you need to check your fuel gauge, speed limit, engine temperature, and RPM when you’re driving down the road. Your car’s dashboard is designed to focus you on what’s important and what you need to know to have a safe trip.

Your car’s dashboard items, if they applied to business, would be called key performance indicators or KPIs. Unlike a car’s, the KPIs of your business vary depending on your business goals and what’s important to you. Common ones might include your cash balance, how fast you get paid, how much revenue is coming in, and whether you’re making plan. There are literally hundreds of them to choose from, and many of them are not derivable from your financial statements, such as number of orders, client satisfaction levels, and employee turnover.

Would it be useful to have a dashboard of KPIs for your business so you can know what’s working and get alerted to what needs focus? Here are the steps to creating a dashboard for your business:

Decide on the KPIs you want to track. Selecting 6-10 to create and track is a good place to start.
Select a tool that will provide you with the KPIs in the format you desire. There are many great add-ons to your accounting software that will instantly crunch the financial KPIs for you and present them in insightful formats, including charts, graphs, dashboards, and reports.
Create any new processes to calculate the new KPIs and get them entered into the dashboard app.
Hold a review meeting to go over the KPIs and determine any action based on the review.

There are many great KPIs available right in your accounting system, which might be plenty to get started with. And there are some real gems outside your accounting system that will take a bit of work to calculate. In any case, we can help you through this process. Feel free to reach out to us any time to discuss the possibilities of having a dashboard in your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Should You Have a Financial Dashboard? Subscribe here: [link]

Would it be useful to have a dashboard of KPIs to keep an eye on how your business is performing? Find out more: [link]

Biz Tip: There are many great KPIs available right in your accounting system to create your own financial dashboard. [link]

The KPIs of your business vary depending on your business goals and what’s important to you. [link]

Common KPIs might include your cash balance, how fast you get paid, how much revenue is coming in, and whether you’re making plan. [link]

A financial dashboard can give you a snapshot of how your business is performing. Find out more here: [link]

Do you know how to track your KPIs using a financial dashboard? [link]

Should You Have a Financial Dashboard? Sign up for our newsletter: [link]

How to Survive a Worker’s Comp Audit

Tue, 14 Aug 2018 01:36:44 GMT

BizBoost News
Volume 8, Issue 4
For distribution 8/13/18; publication 8/16/18

How to Survive a Worker’s Comp Audit

If you have employees, you have the distinct honor once per year of being part of a worker’s compensation audit. You likely receive a form in the mail, an email request, or a phone call that will ask you about your payroll numbers and employees for the prior year.

Worker’s compensation is an insurance program that covers employees in the case they get hurt on the job. Each employee receives a classification code that describes the type of work they do, and a rate is figured based on the classification and its risk factors.

If you’ve hired anyone throughout the year, you might need to get a new classification by contacting your provider. If you have employees working in different locations (especially different states), that matters too.

The audit form will typically ask for gross payroll numbers by employee or by category or location of employee. That’s easy enough, but seldom does the policy run along your fiscal year, so the payroll figure needs to be prorated to match the policy period.

Your numbers need to tie back to the numbers reported on your quarterly payroll reports for both state and federal. The provider may also want copies of your 941s and your state payroll reports.

Once you’ve submitted your numbers, the insurance provider will calculate whether they owe you or you owe them additional fees.

The worker’s compensation audit happens every year (even if you pay worker’s comp premiums each pay period, some companies still request an annual audit). It’s not difficult, but it is time-consuming. If this is something you’d like our help with, please feel free to reach out.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Survive a Worker’s Comp Audit. Subscribe here: [link]

Need help with your annual workers comp audit? Find out more: [link]

Biz Tip: If you’ve hired anyone throughout the year, you might need to get a new worker’s comp classification code by contacting your provider. [link]

A worker’s comp audit is not difficult, but it is time-consuming. [link]

If you have employees, you have the distinct honor once per year of being part of a worker’s compensation audit. [link]

Survive a Worker’s Comp Audit with ease. Find out more here: [link]

Is filling out your workers comp audit form taking too much valuable time? [link]

How to Survive a Worker’s Comp Audit. Sign up for our newsletter: [link]

Setting Up Products and Services

Tue, 31 Jul 2018 01:37:58 GMT

BizBoost News
Volume 8, Issue 3
For distribution 7/30/18; publication 8/2/18

Setting Up Products and Services

The products and services your business sells make it unique. The same thing is true of how these items are set up in your accounting software. Whether you’re using QuickBooks Online or something else, getting your products and services set up right can impact the quality of the information you can get out of your accounting system.

Here are the types of items you can set up in most systems.

Inventory item

Inventory items are used in retail and wholesale businesses. They are physical items that the system can keep count of for you. You can purchase or make the items, and the associated cost is usually tracked when a shipping receipt or bill is entered. They are sold when a sale is made and an invoice or sales receipt is entered.

Transactions using inventory items impact a lot of accounts on both the balance sheet (cash, accounts payable, accounts receivable, and inventory) as well as the income statement (cost of goods sold, sales, and returns). The inventory item can be tied to default sales and purchase accounts in most systems.

Non-inventory item

QuickBooks offers a type of item called a non-inventory item. There’s a big difference in that non-inventory items do not have quantities associated with them. They don’t increase or decrease the inventory account. But they are able to be tied to default sales and purchase accounts like inventory items above.

Examples of non-inventory items include items purchased for a specific jobs, such as a contractor purchasing appliances for a custom home, items you sell but do not buy, such as an ebook or other digital product, and items you purchase but do not sell, such as shopping bags.

Service item

A service item is a special type of non-inventory item. There are no quantities, which makes sense because services are not physical items. They also are only connected to a sales account and not a purchase account.

With service items, you could set up service packages or hourly rates.

Bundle

A bundled item is a group of items that were designed to be sold together. For example, if you sell a gift basket of coffee products, you would bundle the items used to create the basket.

Assembly Item

An assembly item is a special type of inventory item where the quantity is tracked, but it differs from an inventory item in that it can’t be sold separately because it is a component and not a whole item. Assembly items are available in larger accounting and inventory apps, such as QuickBooks Enterprise, and are used in conjunction with a Bill of Materials or other build feature.

An example is a set of shelves. The assembly components are the individual shelves and the frame pieces that you may want to keep counts of. An inventory item that contains the shelves, the frames, and other parts is “built” from the assembly items. The nuts and bolts could be non-inventory items or assembly items, depending on whether you wan to keep count of them or not.

Sales Tax

Sales tax is a very special type of item used on an invoice or sales receipt to calculate sales tax due on the order. In many accounting systems, it’s usually kept in a separate list from the other product and service items. Rates can be entered for each sales tax jurisdiction.

Other

Some systems have an “other” category to capture items such as freight, shipping, handling, and other add-ons to the sale.

Tracking Profitability

Setting up the right type of products and services is critical to matching costs and revenue for accurate insights into gross margin. This section of your accounting system is also the one that’s most different from industry to industry and company to company. Be sure you get professional help from experts who know both the software and your industry for best results.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Setting Up Products and Services. Subscribe here: [link]

Are you entering your products and services into QuickBooks correctly? Find out more: [link]

Biz Tip: Setting up the right type of products and services is critical to matching costs and revenue. [link]

Examples of non-inventory items include items purchased for a specific job. [link]

An assembly item is a special type of inventory item where the quantity is tracked, but it differs from an inventory item in that it can’t be sold separately. [link]

The way you list your products and services in QuickBooks is more important than you might think. Find out more here: [link]

Did you know that the way you list an item in QuickBooks can affect the quality of information you get out of your accounting system? [link]

Setting Up Products and Services. Sign up for our newsletter: [link]

How to Cut Costs with Fixed Assets Management

Tue, 17 Jul 2018 01:41:17 GMT

BizBoost News
Volume 8, Issue 2
For distribution 7/16/18; publication 7/19/18

How to Cut Costs with Fixed Assets Management

Fixed assets are special kind of assets in your business. They include land, buildings, equipment, furniture, and vehicles that your company owns. While we frequently look at expenses to cut costs, fixed asset management is another place we can look to find ways to better utilize our resources and, in some cases, improve our profits.

Fixed asset management is a discipline that requires keeping good records of the assets a company owns. In the case of furniture and equipment, many businesses place an asset tag on the item and assign it a number that goes in a spreadsheet where data is kept about the item. There are also software apps more sophisticated than spreadsheets that track all of the fixed assets for a company, including original cost, depreciation method and history, and tax treatment.

You never know how many of an item you might have until you record and count them. How many computers (and computer parts) do you have lying around your office? Extra desks and chairs? Maybe you even have extra office space or extra land.

Part of being a great entrepreneur is fully utilizing all the resources you have at your disposal. Where can you put to better use the extra assets you have? Could you sell the surplus items? Or donate them for a write-off? Do you have extra room to rent out to a tenant, earning rent?

Sometimes we’re so focused on operating the core of our business that we don’t see what else is a money maker right in front of us. In addition to focusing on income and expenses from operations, consider the resources you have in your fixed assets.

At the very least, consider developing a spreadsheet that tracks the major items your business owns. Or reach out to us, and we’ll help you develop a fixed assets schedule and tracking process for your business.

And if you do sell some of your fixed assets, be sure to reach out to us so we can help you book the transactions properly.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Cut Costs with Fixed Assets Management. Subscribe here: [link]

Do you know how fixed assets management can cut costs? Find out more: [link]

Biz Tip: Consider developing a spreadsheet that tracks the major items your business owns. [link]

Fixed asset management is a discipline that requires keeping good records. [link]

Fixed asset management is another place we can look to find ways to better utilize our business resources. [link]

Fixed assets are special kind of assets in your business. Find out more here: [link]

Where can you put to better use the extra assets you have? [link]

How to Cut Costs with Fixed Assets Management. Sign up for our newsletter: [link]

5 Tips on Bringing Home the Bacon

Tue, 03 Jul 2018 01:42:41 GMT

BizBoost News
Volume 8, Issue 1
For distribution 7/2/18; publication 7/5/18

5 Tips on Bringing Home the Bacon

Whether you call it bacon, Benjamins, or big bucks, cash – and having enough of it – is key to running your business. Here are five tips related to managing and getting the most out of your business cash.

1- All banks are not the same.

Choose your bank wisely, and don’t be afraid to switch if you need to. Banks know they have a “high switching cost,” which means it’s one big time-consuming hassle for customers to change banks.

A couple of things that are important when choosing banks (some of which we never knew to ask five years ago) include:

Is your accountant able to connect your accounting system with free bank feeds, saving you hours and hours of accounting work?
How automated is your bank? The more automated, the fewer errors, and the more likely the bank is to have competitive services, features and prices.
What is their policy on holding large deposits?
Do they offer ACH services?
Does your payroll withdrawal need to be approved each pay period?

Accountants have experience with banks, so if you are in the market for a new one, feel free to reach out and ask us our opinion on the easiest bank to work with.

2- Keep the number of cash accounts to a functional minimum.

Certainly, you’ll need at least a business checking account, often a business savings account, a business PayPal account, and perhaps a petty cash fund. You may also want a separate account for payroll; a lot of companies do. But if you need more accounts, there should be a functional business reason to support them. That’s already a lot of accounts to reconcile and keep track of each month.

The same is true of credit card accounts. It’s the keep-it-simple approach.

3- Reconcile all of your cash accounts every month.

Keeping all of your cash accounts reconciled each month is a good idea. If a bank error, accounting mistake, or even fraud occurs, you can catch it and get it resolved more quickly than if you delay.

You’ll also have more accurate information about your balances and can move and manage your money better.

As you learn your balances each month, you can also move money around. Unless you spend a lot out of PayPal, plan to move that money to pay off debt or into your checking account on a regular basis.

4- Maintain a cushion in your checking account.

If your checking account hovers close to zero more often than not, you may be wasting precious time watching your bank balance instead of spending time to manage your business. If you make a small error, you may get hit with costly overdraft fees, making your cash situation even worse.

Instead, consider depositing a fixed amount, like a cushion, that you never spend. You won’t get overdraft fees, and you won’t have to watch your balance so closely. You may give up some interest income, but the time freed up and the reduced worry will be worth a few extra pennies.

5- Watch your liquidity.

Cash is to business as water is to people; we can’t live without it. Make sure you have enough to cover future obligations, and when possible, build up several months of reserve for emergencies. Anything that you can liquidate quickly, such as accounts receivable, can count toward this fund too.

Try these five cash flow tips to keep bringing home the bacon in your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: 5 Tips on Bringing Home the Bacon. Subscribe here: [link]

Need some tips on your business’s cash flow? Find out more: [link]

Biz Tip: Keep the number of cash accounts to a functional minimum. [link]

Consider having a cushion in your checking account that you never spend. [link]

Make sure to reconcile all of your cash accounts every month. [link]

All banks are not the same. Find out more here: [link]

Have you chosen the right bank to do business with to make sure you’re bringing home the bacon? [link]

5 Tips on Bringing Home the Bacon. Sign up for our newsletter: [link]

Do You Spend Too Much Time on Email?

Tue, 05 Jun 2018 01:47:02 GMT

BizBoost News
Volume 7, Issue 25
For distribution 6/4/18; publication 6/7/18

Do You Spend Too Much Time on Email?

If you feel like you spend too much time on email, you’re not alone. Almost everyone feels the same way. That’s why it’s so important to learn how to be as productive as possible when it comes to handling email. Here are five tips to help you do just that.

1- Automate your emails.

If you’re sending a lot of the same emails to clients, you may be able to add them to email list management software like Constant Contact or MailChimp. Then you can automate a series of emails using the autoresponder function.

Another way to automate your emails is to set up inbox rules so that certain emails are automatically filed into the folders you’ve set up. For example, if you get a monthly email for a recurring bill payment, you could send it straight to your bills folder if you don’t want to read it. This will save time in the morning when you sort through the pile of email that’s sent overnight.

2- Set a timer.

Make a habit of checking your email only once or twice in the day. Plan those times on your calendar and set a timer to stop if you need to. This employs time batching, one of the most productive ideas in time management. It’s unproductive to stop and read each email exactly as it comes into your box, so setting times restructures the way you work with email for the better.

3- Create draft email answers of your ten most frequently asked questions.

Do you get a lot of the same questions over and over again in your email? Don’t start from scratch each time you craft an answer. Start with a draft of a previous answer, make it generic, and save it in your drafts folder. When you get that question again, copy and paste the draft and customize it as necessary.

Repeat this for your top ten (or twenty) most-asked questions or emails that you send. You’ll shave minutes off each email reply from now on.

4- Learn the email software you’re using.

Sure, everyone pretty much knows how to send, reply to, and forward emails. Most even know how to add attachments. But what else do you know and use on a regular basis?

If you are tech-savvy, then simply spend some time reviewing your email settings and functions. There may be some you discover that will make your day.

If you don’t feel very comfortable with all things technical, then sign up for a formal course, preferably in person, where you have a real human teacher that can answer all your questions. It will be a day well spent.

5- Set up folders.

Folders, labels, or categories in your email software are all good ways to segment email so that it can be processed in a particular order. Your folders might be by priority, client, service type, or something else. In any case, it’s easier on your brain to answer all questions from one client or topic at a time than it is to ping-pong back and forth.

Use folders when you are complete with an email but want to save it for future reference. That way, your inbox will stay cleaner and emptier.

6- Use the search function.

Using the search function liberally in your email software when you need to find an old email will help you save tons of time.

7- Get a new email address if your current email address is too spammy.

You may be losing the spam battle with email addresses that have been used for more than a few years or that have been hacked. If so, the best solution might just be to switch to a new email.

Choose a good email address in the first place by staying away from email addresses that hackers can guess, like webmaster@yourdomain.com, sales@yourdomain.com, or info@yourdomain.com. Instead use service@yourdomain.com or a version of your first and last names.

Try these email productivity tips to help you spend less time on email while still getting the job done.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Do You Spend Too Much Time on Email? Subscribe here: [link]

Do you want to be more productive when using your email? Find out more: [link]

Biz Tip: Folders, labels, or categories in your email software are all good ways to segment email so that it can be processed in a particular order. [link]

Try these email productivity tips to help you spend less time on email while still getting the job done. [link]

Here are five tips to help you handle your email. [link]

Learn how to be as productive as possible when it comes to handling email. Find out more here: [link]

Are you spending too much time on email? [link]

Do You Spend Too Much Time on Email? Sign up for our newsletter: [link]

How to Read Your Income Statement

Tue, 08 May 2018 01:50:24 GMT

BizBoost News
Volume 7, Issue 23
For distribution 5/7/18; publication 5/10/18

How to Read Your Income Statement

The income statement of any business is probably the most important report of all. It is a snapshot of the financial performance of your business over a period of time, such as a month or year. You might also hear it called the Profit and Loss Statement, or P&L.

The income statement can give you all kinds of insights as to whether you are bringing in enough sales, if your prices are generating enough profit, and how your expenses are running. Let’s take a look at the report, step by step.

Revenue

The report starts by listing the revenue for the period of time covered. Revenue includes all sources of income, including sales from operations, interest and investment income, revenue from insurance claims, sales from assets or other parts of the business, and any other source of revenue. In most small businesses, sales will be the largest part of the revenue, if not all of it. In some countries, the term used for sales is turnover.

If you sell more than one item or have more than one location, it might be a good idea to be able to view the sales detail from these categories. This may or may not be on your income statement depending on how formal it is, but you should be able to get a drill down report on your sales detail.

Look for exceptions to what you expect to see. There can be some decisions you can make and actions you can take from the insights you discover.

Cost of Goods Sold

This section of the income statement includes costs you incur directly on items you sell. If you maintain an inventory, it’s the cost you paid for the inventory items that you sold during the period. If your business is a manufacturer, cost of goods sold, or COGS, will include costs of materials and labor to produce the items.

If you own a service business, COGS will typically be zero. As a service business, you may incur direct costs when providing services, and these costs can be booked in a variety of expense accounts, including supplies.

Gross Profit

Some income statement formats will include a gross profit number which is sales minus cost of goods sold. This number is important for businesses with inventory.

Expenses

The expenses section of the income statement is the longest part. It includes all of the expenses you incurred in your business, including advertising and marketing, rent, telephone, and utilities, office supplies and meeting expenses, travel, meals, and entertainment, payroll and payroll taxes, and several more.

You might also hear the term overhead. Overhead is a subset of expenses that have to be met whether you sell zero items or millions. They include items like rent and utilities, management payroll, and office supplies.

To review your expenses, check line by line to see if anything looks out of sorts, and take the appropriate action.

Net Profit or Loss

The final number on your income statement represents whether you made or lost money in the period the report covers. The formula is simple: revenue less COGS less expenses equals net profit or loss.

Net profit/loss can go by many names, depending on the size of your business and your accountant’s vernacular. You may also see EBITDA: Earnings before interest, taxes, depreciation, and amortization. Earnings is another word for net profit.

Perspective

It’s a good idea to compare your income statement numbers to other periods in your business. Common comparisons include last period, last several periods, and same period last year.

It’s also a great idea to have a budget that sets goals for your income statement numbers. Then you can compare budget to actual numbers and take action on the variances.

If your business falls into a standard type of business, you may also be able to see how it is doing compared to others in your industry. This is called benchmarking, and the income statement is a very common format that’s used in benchmarking.

Do spend some time each period reviewing your business’s income statement. It can help you make a faster course correction in your business so you can be even more successful than you already are.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Read Your Income Statement. Subscribe here: [link]

Do you want to learn how to read your income statement? Find out more: [link]

Biz Tip: It’s a good idea to compare your income statement numbers to other periods in your business. [link]

Take a look at your income statement, step by step. [link]

Spend some time each period reviewing your business’s income statement so you can be more successful in your business. [link]

The income statement of any business is probably the most important report of all. Find out more here: [link]

Are you bringing in enough sales in your business? The income statement can give you all kinds of insights. [link]

How to Read Your Income Statement. Sign up for our newsletter: [link]

Five Fun Customer Perks to Set You Apart in the Marketplace

Tue, 10 Apr 2018 01:52:40 GMT

BizBoost News
Volume 7, Issue 21
For distribution 4/9/18; publication 4/12/18

Five Fun Customer Perks to Set You Apart in the Marketplace

It’s always fun to surprise and delight your customers. This puts a smile on your client’s face, boosts loyalty, and is fun for your employees too. Here are five ways to surprise and delight your customers with inexpensive perks.

1. Handwritten thank you note.

Email and social media have all but killed the handwritten thank you note. So when you send yours to your top customers, it will really stand out.

2. Promotional items.

Promotional items are frequently handed out at trade shows, but they can be used in other settings too. These are items where your logo is typically imprinted and you purchase them in quantity. Items that are useful and popular include coffee mugs, t-shirts, fidget spinners, screen cleaners, webcam covers, keychains, note pads, calendars, and more.

Choose an item that is similar to or a reminder of your business or product. An IT consultant might choose a screen cleaner, while an accountant might choose a piggy bank.

3. Coupon bag.

If your business is located in a strip center, shopping mall, or office building with other businesses around, go door to door and ask for coupons that you can put in a coupon bag to give to clients. Clients will be delighted to get a coupon for the dry cleaners, florist, and hair salon in your center no matter what type of business you’re in.

4. Random prize.

If your business has a stream of clients coming in a physical store or a virtual one, you can award prizes randomly to customers. If customers are grouped together as in a classroom or lecture hall, it’s easy – you can hold a drawing for a prize. Or you can select a random number and the customer assigned that number wins a prize.

Choose a prize from one of your services or products, or give something away that’s universal and “hot,” such as an Amazon Echo Dot.

5. Free samples.

The cosmetics industry has been giving away free samples and gifts with certain purchases for decades. Grocery stores often have free samples of food at a little booth staffed by a host at the end of an aisle. You might be able to apply this idea to your business with a little bit of creativity.

Think of how you can “sample” your service or product and package it up in a free gift or sample. If you offer a service, you may have to get extra creative. A consultant can offer a book that’s related to the service offered, a spa can have healthy treats while clients wait, and a divorce attorney can offer stress balls or fidget spinners.

With customer service declining in many businesses, try these five things to wow your customers and set your business apart.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Five Fun Customer Perks to Set You Apart in the Marketplace. Subscribe here: [link]

Do you want to surprise and delight your customers with perks? Find out more: [link]

Biz Tip: If your business has a stream of clients coming in a physical store or a virtual one, you can award prizes randomly to customers. [link]

Here are five ways to surprise and delight your customers with inexpensive perks. [link]

With customer service declining in many businesses, try these five things to surprise your customers and set your business apart. [link]

Promotional items are frequently handed out at trade shows, but they can be used in other settings too. Find out more here: [link]

Do you want to wow your customers and set your business apart? [link]

Five Fun Customer Perks to Set You Apart in the Marketplace. Sign up for our newsletter: [link]

How to Evaluate Your Marketing Spend

Tue, 13 Mar 2018 01:54:24 GMT

BizBoost News
Volume 7, Issue 19
For distribution 3/12/18; publication 3/15/18

How to Evaluate Your Marketing Spend

One of the most important success factors of small businesses is the ability to generate revenue, and to do that, most businesses need to market their services and products to bring in new customers and sales. The challenge for small business is how to make their marketing dollars work the hardest, and this requires careful tracking and measurement. Here’s one way to get started tracking your marketing spending so that you can find out what’s paying back the most.

List your sources of revenue

First, determine where your sales are coming from by making a list of all the ways you are currently attracting customers. Here are a few:

Website via search
Social media
Google ads
Referrals from existing customers
Ad in local magazine
Article on Huffington Post
Board membership on local nonprofit
Chamber of Commerce membership and participation

Track your expenses by source or method

Once you have your list, it’s time to look to your accounting system. Create accounts or other types of tracking codes in your system to track expenses for each of these marketing methods. If you need our help, please feel free to reach out.

The goal of this step is to be able to get all costs associated with each of these marketing methods so that you have a total cost over time by method. Don’t forget labor: if an employee spends three hours a week updating your social media accounts, this should be included in your costs.

Determine the source of your sales

To the extent you can, match the sales that come in with the marketing source or method. In other words, if a customer knows you from the Chamber and spends $500 with you, match the $500 revenue with the Chamber marketing source. Do this for every sale you can. If you don’t know or can’t attribute the sale to any one method, then code it to an Unknown tracking code or account.

This step can be difficult, depending on your business type, especially if your customers are anonymous, as in retail or restaurant sales. However, every business can do better by asking “how did you find out about us?” to each new client that comes in and recording that answer.

For online sales, you can use tracking apps such as Google Analytics to help you measure digital marketing methods.

Do the best you can on this step, and implement procedures to capture this information as accurately as possible for future sales.

Analyze and adjust

This is the fun part. Once you’ve done all the hard work, you should be able to match sales to costs and determine the volume of sales that are coming in for each marketing method. Let’s say you found out that you are getting no sales from your nonprofit board membership, the Huffington Post article, and social media. You now have some decisions to make.

If you are doing these things solely for the purpose of marketing, you could cut them out and focus on the remaining methods. It could also mean that you need to redo your social media strategy; it’s not working now, but another strategy might. Or just one article in HuffPost is not enough, but three articles could start paying off.

At any rate, you have far more information than you did before you started, and now you can make smarter decisions about your marketing. If we can help you code and crunch all of these numbers, please reach out any time.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Evaluate Your Marketing Spend. Subscribe here: [link]

Do you want to make smarter decisions about your marketing? Find out more: [link]

Biz Tip: For online sales, you can use tracking apps such as Google Analytics to help you measure digital marketing methods. [link]

The challenge for small business is how to make their marketing dollars work the hardest. [link]

Here’s one way to get started tracking your marketing spending so that you can find out what’s paying back the most. [link]

One of the most important success factors of small businesses is the ability to generate revenue. Find out more here: [link]

Learn how to evaluate your marketing spend. [link]

How to Evaluate Your Marketing Spend. Sign up for our newsletter: [link]

Is Your Workplace Female-Friendly?

Tue, 13 Feb 2018 02:56:22 GMT

BizBoost News
Volume 7, Issue 17
For distribution 2/12/18; publication 2/15/18

Is Your Workplace Female-Friendly?

Attracting and retaining talent in your small business can be a giant step toward growing into a mid-sized business. Beyond attracting new employees with salary and benefits, here are several perks, policies, and benefits to consider when recruiting women, and employees in general, to your workforce.

1. Flex work hours.

Everyone likes regaining control over their workday, and offering flex hours can be one of the lowest cost policies to implement. Flex hours support work-life balance and are especially important for employees who have school-age children who can plan work around their children’s day.

2. Wellness initiatives.

Large companies are able to offer a wellness program, but small companies can take small steps to reach the same result. Find a local gym to partner with for a membership discount. Bring in the occasional yoga teacher. Or hire a nutritionist to speak once a quarter to your employees. All of these small initiatives demonstrate to your employees that you honor a culture of wellness.

3. Maternity and adoptive leave.

Do you have a policy about time off for new parents? And more importantly, you’ll need a process to re-integrate the employees into the business when they return.

4. Child care support.

Even if you can’t afford to provide onsite child care, you might be able to partner with a local child care facility to provide reduced or subsidized rates.

5. Gender hiring goals and metrics.

Do you have an equal number of men and women in your workplace? If not, do you have goals in place to adjust the ratios when possible? If you have a disproportionate number of one gender making all of the hiring decisions, you may want to consider the effects of implicit bias on your hiring processes.

6. Mentoring.

One way to speed the growth of employees is to provide mentoring. All employees will benefit from strong role models.

7. Opportunities for promotion.

Both men and women will perform better when there is a clear path to promotion as well as leaders in current positions who demonstrate leadership.

8. Dress for your day.

One of employees’ favorite perks is to be able to dress casually when no customer meetings are scheduled.

9. Paid time off.

Paid time off, which used to be called sick pay, is a favorite. But now, with most employers, you don’t necessarily have to be sick or explain your reason for wanting to take a personal day from work.

10. Gender-neutral company events.

Many companies create events for employees and sometimes customers to enjoy and mingle. This can include the company Christmas party, lunches, and happy hours. It can also include sports events such as golfing and attending baseball games. For every traditionally male event, be sure to plan a traditionally female event to keep the options gender equal. Spa day, anyone?

These benefits are a great start to attracting top talent, boosting employee morale, and maintaining a happier workforce in your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Is Your Workplace Female-Friendly? Subscribe here: [link]

Do you want to boost employee morale? Find out more: [link]

Biz Tip: Offering flex hours can be one of the lowest-cost policies to implement. [link]

Here are several perks, policies, and benefits to consider when recruiting women, and employees in general, to your workforce. [link]

These benefits are a great start to attracting top talent and maintaining a happier workforce. [link]

Attracting and retaining talent in your small business can be a giant step toward growing into a mid-sized business. Find out more here: [link]

Do you want to maintain a happier workforce in your business? [link]

Is Your Workplace Female-Friendly? Sign up for our newsletter: [link]

Five Tips to Make Tax Time Painless

Tue, 16 Jan 2018 02:59:33 GMT

BizBoost News
Volume 7, Issue 15
For distribution 1/15/18; publication 1/18/18

Five Tips to Make Tax Time Painless

Tax time is probably not your favorite time of year, especially if you have to pay the government your hard-earned dollars. Here are five tips on how we can make it just a bit less painful.

1. Have patience.

Practicing patience will go a long way when you’re dealing with taxes. Keep in mind that for tax professionals, the months of January through April are as crowded and hectic as a shopping mall in December. Parking is scarce, the sales clerks are doing the best they can, and customers are all trying to shop for presents, party items, and decorations in a very compressed time period.

Be patient with yourself as well. You have the skills to manage your business and do well at your career, but it may not be at organizing paperwork or dealing with numbers. That’s where we can help.

2. The tax stack.

Set aside a permanent place on your desk to be the tax stack. When you receive something in the mail that is tax-related, place it in the tax stack. You’ll save valuable time later not having to look for documents you need.

Similarly, create a folder on your computer for tax items. Under Documents, create a folder called Taxes. Within that folder, create a folder for the tax year, such as 2017 for the year just ended. Move all of your tax-related computer documents into that file.

At your leisure, scan in or take a cell phone picture of the paper documents in the tax stack and place the digital file in the Tax folder. Now you’ll have everything in one place and you’ll be so organized that your tax accountant will be surprised!

3. Catch up.

If your books or records are behind for 2017, get them caught up now to beat the rush. If you wait until the first week of April, you’ll probably need to file an extension. Keep in mind that an extension only grants a paperwork extension; it doesn’t delay any tax payments that are due. If you wait too late, you’ll have the stress of waiting until the last minute, the stress of paying estimated taxes, and the stress of waiting until your return is finally filed.

4. Early bird.

Connect with us or your tax professional early to agree on what services will be offered and to get your documents turned in as soon as you receive them. Getting your things in early will mean less waiting time for preparation and filing. Wouldn’t it be great to be able to say that you’re done with your taxes in February? Your stress will be less, and your energy can be redirected to new projects.

5. Avoid a large tax payment.

The worst thing about tax time might just be writing a big check, possibly with penalties, to the government in April. Instead, plan ahead and spread out your payments for next year by adjusting your payroll withholding or making quarterly estimated tax payments. Spreading your tax payment throughout the year will have you writing a smaller check, if any, in April.

Try these five tips for tax time, and you’ll have more energy for other, more important things in your business.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Five Tips to Make Tax Time Painless. Subscribe here: [link]

Are you stressed about tax season? Find out how to have a painless tax season: [link]

Biz Tip: Set aside a permanent place on your desk to be the tax stack. [link]

Try these five tips for tax time, and you’ll have more energy for other, more important things for your business. [link]

Tax time is probably not your favorite time of year. Here are five tips on how you can make it just a bit less painful. [link]

Practicing patience will go a long way when you’re dealing with taxes. Find out more here: [link]

Tax time not your favorite time of year? Our advice for an easier tax season. [link]

Five Tips to Make Tax Time Painless. Sign up for our newsletter: [link]

How to Write Your Mission Statement

Tue, 19 Dec 2017 03:01:22 GMT

BizBoost News
Volume 7, Issue 13
For distribution 12/18/17; publication 12/21/17

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.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: How to Write Your Mission Statement. Subscribe here: [link]

What Is a Mission Statement? Find out more: [link]

Biz Tip: Ask yourself what your business’s core purpose is. Once you know, you’ll be able to write a mission statement. [link]

As an owner of a small business, you can benefit from writing your mission statement. [link]

A mission statement answers the question “What impact will you have on the world?” [link]

There are many ways you can share you mission statement. Find out more here: [link]

Does your mission statement motivate and energize you? [link]

How to Write Your Mission Statement. Sign up for our newsletter: [link]

Spice Up Your Marketing with Storytelling

Tue, 21 Nov 2017 03:02:55 GMT

BizBoost News
Volume 7, Issue 11
For distribution 11/20/17; publication 11/23/17

Spice Up Your Marketing with Storytelling

One of the ways to impact your marketing is by adding stories. Everyone loves a story, and stories are more memorable compared to almost any marketing copy. Here are a couple of tips on how to use and place stories to share with prospects and customers.

What a Story Is

All stories need to be personal and evoke an emotional response. They can be about the company, the employees, the founder, the customers, or each individual product. Many stories revolve around why the company was started. Others focus on what you can achieve with the product.

Here are some ideas for stories for yourself:

Is there a story about why you started the company?
Have you seen a transformation in customers you work with that you can craft a story around?
Do your employees have a great story about why they love working for you?
Is there a story about how your products are created?
Is there anything you overcame to start or grow your company?

To be most impactful, a story should be far more than a history lesson or a mission statement. The best stories describe an inspirational transformation.

Stories can be told in a video or in text and graphics. Two things make a story powerful. First, use details rather than general descriptions. This means going through your story and making sure you have a lot of descriptive adjectives. Second, use all five senses. The reader or video watcher should be able to feel like they are right with you in the scene, knowing what you felt, saw, heard, smelled, and even tasted.

Here are some examples to get you inspired:

Nike’s The Chance: https://vimeo.com/40035962

Warby Parker’s Why: https://www.warbyparker.com/history

SoulCycle Who We Are: https://www.soul-cycle.com/our-story/

Every Product Has a Story – Jewelry: http://www.ephas.com.au/our-products/jewellery/necklaces

Think about your story, and share it with the world.

***

Tweets

Insert a link to your newsletter, web site or blog before you post these:

Our latest blog: Spice Up Your Marketing with Storytelling. Subscribe here: [link]

Is there a story to tell about why you started the company? Find out more: [link]

Biz Tip: A story should be more than a mission statement. The best stories describe an inspirational transformation. [link]

Here are a couple of tips on how to use and place stories to share with prospects and customers. [link]

Everyone loves a story, and stories are more memorable compared to almost any marketing copy. [link]

One of the ways to impact your marketing is by adding stories. Find out more here: [link]

What is storytelling? How can it impact your business and marketing? [link]

Spice Up Your Marketing with Storytelling. Sign up for our newsletter: [link]