Archive for the ‘Business’ category

Being In the Black

January 1st, 2010

universal-business-modelBeing in the black can mean a lot of different things. For most business owners, it means being profitable. When a business owner sets out on a new venture, establishing a profitable business is one, if not the only, driver. Unfortunately, too many entrepreneurs get lost in the day-to-day tasks of running the business and forget their main purpose.

As your accounting professional and Profit and Growth Expert we apply The Universal Business Model to help maximize the profitability of your business. Each month we apply our financial expertise, combined with access to a variety of analytical tools, to assess your business’s financial position and progress.

wisdom-pyramidWith our help you can improve your business’s financial position using  The Wisdom Pyramid.  Here’s a short list of what you will accomplish:

  • Know how your business stacks up against the competition using the professional business assessment we provide.
  • Recognize your business’s strengths and weaknesses, and use that awareness to improve your profitability.  Consider this a Day with your CFO.
  • Identify trends that expose what is both helping and hindering to your business.
  • Take advantage of tax benefits through regular reviews of your tax position.

By gathering the necessary information through the bookkeeping and accounting process, we will analyze the data and help you make the changes required to improve your business’s profitability. Whether you need a financial audit or review, we can help move your business forward.

Custom-Designed Small Business Accounting System

January 1st, 2010

In today’s competitive environment, information is power!

You’ll uncover a goldmine of profit-building information as you assess your financial standing, and when used properly, this information can help you better plan for your business’s success.

Call today for a free consultation. There is absolutely no obligation of any kind.

It will be well worth your time!

Do you have a customized accounting or bookkeeping system? Take This Quiz:

Can you answer these 10 questions about your business?

  1. Were my total sales up or down last month? And where they designated by category?
  2. What was my total gross profit last month? And was it designated by sales category?
  3. What is my gross profit per item?
  4. What were my expenses by category last month?
  5. Who owes me money and how much?
  6. Who’s behind in paying me and by how much?
  7. How much inventory do I have, in total and by item?
  8. To whom do I owe money and how much?
  9. What was my profit last month?
  10. How much do I OWN, and how much do I OWE?

Were my total sales up or down last month? And were they designated by sales category?
You need to know: If your sales are up, you’ll need extra cash to buy replacement inventory. If your sales are down, you’ll want to pull back on inventory purchases. Sales increases in a category can indicate a new growth opportunity. Sales decreases need to be investigated to determine the reason for the loss.

Back to questions

What was my total gross profit last month? And was it designated by sales category?
You need to know: Gross profit shows the profit remaining from sales after subtracting the cost of the products and/or services you sold. Changes in gross profit indicate whether or not your pricing strategies are working. Cutting prices to increase sales can hurt you if it reduces your gross profit.

Back to questions

What is my gross profit per item?
You need to know: Pricing should be based on profit goals rather than simple conjecture. By raising the prices on some items and selling others near or below cost, you can change your inventory mix and increase gross profits. An increase of just 1% may add thousands of dollars to net profits. You can give sales incentives that will cause employees to sell the most profitable items instead of the easiest ones.

Back to questions

What were my expenses by category last month?
You need to know: Are payroll costs too high? What about other costs, such as insurance and utilities? In order to cut back on expenses, you must first know which costs are excessive. Also, recording your expenses each month ensures that you get the maximum tax deductions.

Back to questions

Who owes me money and how much?
You need to know: You can’t expect to get paid in full unless you tell customers exactly what they owe. An itemized, neatly printed, and up-to-date monthly statement tells customers that you expect to be paid on time and according to your payment terms.

Back to questions

Who’s behind in paying me and by how much?
You need to know: Customers who fall behind need to be contacted immediately and continuously so that it doesn’t become a habit. Also, before you approve a new order from a customer, you’ll want to know if that customer paid you on time for the last one.

Back to questions

How much inventory do I have: in total and by item?
You need to know: If you’re running low on an item, you can reorder in advance and never run out. Plus, you can avoid rush delivery charges. If you have too much of one item, or too much inventory in general, you can cut back on your inventory investment. Also, you can compare a physical count with the books and identify a shortage before it threatens to put you out of business.

Back to questions

To whom do I owe money and how much?
You need to know: Many vendors offer discounts for paying bills in less than 30 days, which can add up to big savings on an annual basis. Paying your bills on time will also increase your chances of qualifying for business credit. Plus, you can plan for your cash requirements and reduce the need to borrow from your own funds or a bank.

Back to questions

What was my profit last month?
You need to know: A monthly profit figure gives you the financial bottom line and lets you know where you’ve been and where you’re going. Plus, you can save thousands of dollars on year-end tax return fees and plan for taxes in advance.

Back to questions

How much do I OWN, and how much do I OWE?
You need to know: Keeping track of your current assets and liabilities allows you to plan for your cash needs and helps you stay in compliance with loan agreements. Plus, you’ll be ready to respond to questions on demand from suppliers or potential customers.

Back to questions

Which of the following best describes Your Accounting System?

I do it myself
Your time is so much more valuable than that! You are the world’s #1 expert in running your business. While you are busy managing the books, your competitors are designing new products and services, preparing new advertising, collecting past-due accounts, and shopping for less expensive suppliers. These tasks are essential to the growth of your business. Are you sure that your accounting system conforms to proper rules and procedures? Even more importantly, do you get all of the valuable information described here from your system?

I have an accountant
Does your accountant or bookkeeper provide you with all of the information described here? Does your accountant take the time to explain what the numbers mean and how you can use them to manage your business more profitably? Do you feel you are getting the best possible value for the fees you are paying?

I don’t have a system
There isn’t a better time than now to get started! Studies have shown that small businesses often fail because they don’t have a good accounting system in place. We will work with you to develop a system for your specific business that is so easy to use that you’ll be amazed. If you can drop a piece of paper into a file folder, you already have the necessary skills to use it! You can obtain all of the valuable information described here. Plus, you will understand what the numbers mean and how you can use them to manage your business more profitably and better control your future.

Day with your CFO

January 1st, 2010

You probably visit your doctor for a physical examination every year or so. The purpose of that visit is to alert you to health concerns, discuss life changes, and identify remedial action required before it becomes too late.

Allow us to be your Chief Financial Officer (CFO) for a day. In this capacity, we can perform a financial examination that will assess your business’s fiscal health. In most cases, we will meet with you following an in-depth analysis of your financial results and share concerns as well as ideas on how your business can achieve better fiscal health. At the same time we can discuss any future business changes you may anticipate and determine how they can best be handled. As your Profit and Growth Expert, we are committed to elevating the health and vitality of your business.

It’s amazing how much difference we can make in just one day!

Accounting — Your Management Controls

January 1st, 2010

Accounting — Your Management Controls

Would you ever drive your car blindfolded? Obviously, not!

Nonetheless, every day millions of business owners drive their businesses without knowing their financial locations: where they have been, where they are, and where they are going. That sure sounds blindfolded to us.

As your profit and growth expert, our primary role is to ensure that you have the historical data that will tell you where you have been and where you currently are. With that information we can provide a professional consultation that will help you determine where you want to go while creating an action plan that will help you get there.

With this 360 degree view of your business, you can plan effectively and then track your progress against your goals. It will also help you anticipate obstacles so that, when encountered, you can easily maneuver around them rather than allowing them to slow you down.

With our help you can’t go wrong.