Roper Bookkeeping Business Tips

What Makes a Business Successful? Part 2: Branding

2011-08-26T01:13:00.001-04:00

After 18 years of pretty much playing it by the seat of our pants, we recently did a brand analysis of our company. We hired a branding and marketing firm called Big Buzz Brands to help us rethink how to best serve our clients and potential clients. They interviewed several clients, employees and others who were familiar with our offerings in order to best understand common needs, perceptions, suggestions, etc.

They also looked at our competitors to see how we compared in services offered, marketing message, and expertise. They did a visual audit of all of our current marketing materials. Finally, they completed a SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) to better define our marketing message.

As a result, we defined our brand essence (the succinct idea that most often comes to mind when people think of our organization and should serve as the foundation for every interaction with the brand) and our positioning statement (what you do at what value to whom).

Now that we better understood our company, our clients and our competitors, the final step was to redo our logo, tagline, and website. Along the way, we also decided to rename our company to better define who and what we are.

Here are the results:
What we were … What we are now …

Name: The Roper Group, Inc. Roper Bookkeeping

Tagline: The QuickBooks & Right by your side.
Bookkeeping Experts Right on the money.

Check out our new website and logo at www.RoperBookkeeping.com and let us know what you think.

Like us on FaceBook (http://www.facebook.com/RoperGroup) and sign up for our newsletter.

For more info about Big Buzz Brands, go to: www.BigBuzzBrands.com
Branding is about more than having a logo and tagline, it’s about your core values, perceptions, understanding your niche and knowing your target market. It’s about social networking, relationships, getting referrals and endorsements from clients and knowing what other people and companies are saying about you (Google Alerts, Social Mention).

Automatic Backup of QuickBooks

2011-06-13T22:47:00.003-04:00

To make sure you don't lose important data, it is important to backup your QuickBooks file often, frequently, a lot - get the picture? To set up an automatic backup:

1. Go to File, click on "Create Backup"

2. Click on "Local Backup"

3. Click on "Options" and select the folder where you want to store your backup copies. This can be on a network drive or on portable storage media such as a USB flash drive or Zip drive.

Note: You cannot schedule a backup to a CD-ROM.

4. Optionally, click the checkbox to limit the number of backups to keep and enter a number in the field provided.

5. Make sure "Complete Verification" is clicked on, then click "OK" then "Next"

6. Click on " Only schedule future backups" then "Next"

7. Click on " Save backup copy automatically when I close my company every X times (insert a number - recommend every 1 times)"

8. Click Finish to close the wizard.

Note: Scheduled backups will automatically include the date and time the backup was created in the file name. The date and time stamps are necessary for QuickBooks to manage the number of scheduled backups to retain on the system.

What Makes a Business Successful? Part 1: Cash Flow

2011-04-30T17:41:00.000-04:00

There are several keys to running a successful business: maintaining cash flow, developing your brand, knowing and understanding your targeted customer, knowledgeable and dedicated employees and more. For this posting we are going to discuss cash flow.

Maintaining cash flow means having the money you need to cover day to day operations and to pay your loans and credit cards. Cash flow is NOT your profits or losses in your business (you can have a profit in a given period in your business and still have no cash in the bank).

What are some mistakes business owners make in managing cash flow?

We have only one supplier of key products/supplies: If you only have one major supplier, you may be missing out on discounts and the opportunity to get competitive pricing.
We don’t have a credit policy (or don’t follow it): Define your credit policy for customers who do not pay up front. What will you do when customers do not pay within the terms you have offered?
We operate on gut feel without analyzing the numbers: Looking at your financial statements on a regular basis to identify trends. This will help you determine when to change your pricing, reduce unnecessary costs and more before it becomes critical.

To increase cash coming into your business:

Know your customers and their ability to pay (check credit references)
Invoice immediately and properly (don't wait until the end of the month to send invoices and make sure each invoice shows very clear payment terms; consider requiring all or part of the payment up front or COD)
Make payments easy for your customer (offer credit cards and discounts/incentives for early payment)
Work your past due accounts (call, not e-mail customers who are past due and keep a log of promises; stop providing products or services to customers in a delinquent status)

To decrease cash going out of your business:

Take advantage of trade discounts from your vendor
Be proactive in talking to your vendors to set up better payment terms
Don't buy until you really need what you are purchasing (just in time concept)
Examine your payroll (are you paying a lot in overtime that could be reduced by hiring a part-time employee; be careful about changing employees to subcontractors unless they meet the IRS definition of a contractor)
Examine your inventory controls (does your physical inventory equal what you have on your books; are you using the FIFO - first in/first out - method for inventory that has a shelf life; do you monitor employees who have access to inventory)
Consider leasing (while overall it may be more expensive, it may allow you to purchase necessary assets and still be able to make the payments)
Examine your customer service strategies (it's cheaper to keep customers than to constantly be looking for new customers)
Examine your marketing strategies (are you reaching your targeted client or are you reaching clients who really can't afford to pay for your offerings?)
Barter (use customer furnished products or services in exchange for your products or services)
Avoid unnecessary improvements (may sound like a no-brainer but it happens all the time!)

Most importantly, plan ahead. Prepare your cash flow projections each year by month. When your cash projections show that cash will be short, plan ahead to make changes to free up cash or to get a loan or line of credit. Don't wait until you are out of cash to change how you manage your cash!

QuickBooks 2011: What's New

2010-10-10T15:48:00.000-04:00

Here is what is new with QuickBooks Pro 2011 - Now Available!

Invoice multiple customers at once with Batch Invoicing: Automatically create a full set of invoices for customers with the same service. Just create the invoice once and select the customers

Quickly locate any account, report, or invoice with QuickBooks Search: Your QuickBooks file is the repository of record for your business, but finding the exact information you need is not always easy. With QuickBooks Search, all you need to do is enter the keyword, and it will pull up all the related reports, invoices, contacts and transaction details.

Stay on top of your receivables with the Collections Center: Quickly identify overdue and almost due invoices, and email all collection notices from your Outlook, Yahoo, Gmail or Hotmail1account in a few steps.

Complete transactions faster with convenient access to your customer or vendor's balance and transaction history: See at a glance important details such as your customer's payment history, estimates, and past orders with vendors right at your fingertips on the same screen, so that you can complete the transaction at one time instead of switching back and forth between screens.

Send invoices and estimates right from your business Yahoo, Gmail or Hotmail account: The new Webmail integration allows you to easily email right from QuickBooks without going through the steps of setting up Outlook.

Keep track of your vendors' remittance address: Keep track of your vendor's remittance with a convenient new field.

Mark which invoices have been paid with the Paid Date stamp: You can now quickly go through your stack of invoices without having to take time to look for individual payment dates.

Click here to purchase or upgrade to QuickBooks 2011

8 Tips for Year End Planning

2010-10-10T13:48:00.000-04:00

Are you ready?

With fall in the air, the end of the year is just around the corner. Here are eight tips for planning for the end of the year for your business:

1. Get your financials in order: Even the best accountants can make mistakes when rushing to meet deadlines and having to sort through a shoe box full of receipts and documents. Whether you've consistently maintained accurate financial records or you have a drawer full of receipts to sift through, getting your books in order is the first and most important step. We can help you with this.

2. Consult with your CPA: Check to see if there are some tax saving steps you can take before year end.

3. Meet tax deadlines: Make sure you have everything prepared on time means starting now. Deadlines differ depending on when your tax year ends and your business entity and meeting deadlines can minimize penalties and interest. Here are a few:

W-2 and 1099's: 01/31/11 for recipient copy, 02/28/11 for copy to SSA/IRS
Form 940 (federal unemployment): 02/01/11
Corporate tax return (calendar fiscal year): 03/15/11
Sole proprietor/Single member LLC (schedule c): 04/15/11

4. Don't forget your retirement. When you contribute to an IRA or other retirement plan you can reduce the amount of income taxed by the IRS.

5. Keep everything! Keep all receipts, old check books, bills and invoices, mileage logs, canceled checks/proof of payments, and any document that supports deductions and credit claims on your tax returns.

6. Analyze this year's financial statements.Look at trends on your Profit & Loss Statement. What can you do to reduce costs or increase revenues for the next year? Look at your balance sheet. How do your current assets (liquid assets) compare to your current liabilities (what you owe)?

7. Evaluate this year's goals.Now that you see where your business stands, it's time to take a look at how it got there. Pull out your business plan or action plan and review the previous goals you'd set for the business. Did you meet your goals? Why or why not? What could be done better?

8. Plan for next year. Avoid disorganization and future stresses by planning for next year NOW. Use what you've learned in preparing your finances and evaluating the current year to set next year's goals, prepare an action plan, and start implementing that plan. We've got a Strategic Action Plan form we can share with you to help with this.

Getting Healthy

2010-09-26T22:23:00.000-04:00

Recently, my staff and I decided we wanted to get healthier. We each set our own personal goal for getting healthy and we shared our goals with each other - everything from walking a certain number of steps every day to losing weight. We even set up a tracking board (in the breakroom, of course) to track our successes and challenges. You notice I said challenges, not failures! Just the fact that we have identified our goal and stated our intention is a positive step. We are confident that by the end of December, we will be well on the way to accomplishing our goals.

We have started to share healthy recipes and we are bringing in healthy snacks. We are even working on finding a fun walk/run we can all particpate in.

So what have I learned so far?

It's not going to happen overnight.
I will backslide occassionally and that's OK.
It's hard to eat healthy when you travel a lot.
Any positive change I make is going to make me healthier.
I really do like fruits and veggies!
It's hard for a night owl to change habits and get more rest!
It's more fun to walk with someone.
If Drew Carey can do it, so can I!

Any suggestions are welcomed!

Step One: Get Organized!

2010-09-13T09:44:00.000-04:00

If there is one thing I've learned while running a small business, it's that nothing gets accomplished without organization. While there must be room for "creative feedom" in most industries, simply being organized makes a huge difference in the every day and long term operation of the business.
When starting a business, in many cases, one begins with a great idea. A person sees a market need or comes up with what they believe to be an amazing service or product and they are ready to hit the ground running! While this drive, passion, and ambition is admirable it's imperative that this innovative businessman or woman step back and make a step by step strategic plan for the future. They have to get organized!
Whether beginning a new company or maintaining a current one, disorganization can be a huge issue.
Financial disorganization can cause the biggest problems. Here are a few simple bookkeeping tips on how to get and stay organizing and avoid finding yourself or your business in a finacial mess.

1. When it comes to bank account statements:

Request a statement with month-end cut off date. This will save time when reconciling records with the bank statement each month.
Do not file statements and canceled checks without reviewing them.
Review statements immediately for unauthorized checks.

2. Cash or accrual?

The cash accounting system is typically much easier to maintain
The IRS allows you to use the accrual system if you have $5 million or more in sales or if you carry large inventory.

3. Keep audit trail.

This is just a record of all your invoices and checks in numeric order.
Be sure to never skip numbers.
Record voids in numeric order as well, just mark them as "void". This assures that there are no gaps in your numeric system.

4. Deposit cash right away. This ensures that all income will be properly recorded.

5. Keep records stored on a computer system. It's important to frequently back-up this information and may even be a good idea to keep paper records as well.

Some of the most important things to remember, but easiest to forget, are simple, basic principles like be consistent and don't overcategorize. The best strategy is to have a structured system of staying organized from the beginning, work it into employee training, and do what you can to maintain the organization of your business.

(Some information in this blog was found at http://www.onlineorganizing.com/. See the site for more information and tips on organization!)

Internal Controls and QuickBooks

2010-07-21T11:39:00.000-04:00

Internal controls are necessary to reduce the risk of fraud. Even employees who are honest can be tempted when they handle large sums of money on a regular basis. This is especially true it the business owner has not implemented any access controls or set up shared control over the business finances. With the additional pressure of an unstable economy, the temptation can become too great for some people if there are no controls in place – remember desperate people do desperate things.

Once the control policies and procedures are established, management should ensure that the controls are being followed.

One thing to consider when creating an internal control policy is limiting permissions for people using QuickBooks® and creating a separate user sign-on for each user. In a small business environment, bookkeeping is often performed by only one or two employees. However, it is still important to give serious consideration to the areas of the system they are allowed to access. QuickBooks® will allow you to limit or even deny a user’s access to certain areas of the system. Management should take the time to become familiar with the capabilities of QuickBooks® and to limit an employee’s access in areas that might not be appropriate. Make sure you have a policy in place that does NOT allow employees to share passwords! If you have a larger accounting staff, you should limit access by areas of responsibility among staff (i.e. A/P vs. A/P). No single person in the organization (other than the owner) should have “ADMIN” rights to everything. The issue with making someone other than the owner an administrator is that it allows them to cover their own tracks, or over-ride important control provisions.

Summer Hiring

2010-07-21T11:36:00.000-04:00

With politics and business laws continuously changing, it’s hard to keep up with all of the federal rules and regulations for running a business. What do I have to do and what is optional? How do I handle payroll for a student intern? What paperwork should I file if I employ my own child? With summer in full swing, many of you have probably signed on new employees for part-time help. Whether it is a full-time seasonal employee, a part-time student intern, or your own family member, there are some important things to keep in mind as you hire summertime help.

Remember:

• For 100% Parent Owned Entities Employing their Children

 If the parent owns 100% of the business, the owners’ children may work any number of hours or any time of day. Children under 16 years of age are not permitted to do hazardous work, work where food is cooked, or work near flammable or hazardous materials

 100% owners hiring only immediate family are not required to pay minimum wage. BUT if they regularly employ others minimum wage must be met, even for family.

 Wages are exempt from FUTA if owners’ children are under 21.

 If the owners’ children are under 18, wages are exempt from FICA but FIT must be withheld on W-2s filed for children.

 For other employed children under the age of 18, obtain an age certificate recognized by the U.S. Department of Labor and your state Wage and Hour Division (WHD). This is to be returned to the workers at time of termination; these workers may not do hazardous work.

 Other children ages 14-15 are permitted to work 8 hours/day, 40 hours/week, June 1- Labor Day, between 7 a.m. – 9 p.m. if school is not in session. These limits do not apply to news carriers or children employed by a parent who is the 100% owner of the business.

 Children under 14 cannot be hired unless hired by a parent who is the sole owner.

• Pay for a holiday is optional for part-time and summer help.

• No paid vacation time is required. However, if one chooses to give paid vacation time some federal and states laws apply.

• Providing health insurance or other benefits to temporary or part-time employees is optional. If these benefits are not offered, however, it should be stated in a written benefits plan.

• A Federal W-4 should be obtained from all summer employees, including seasonal workers, part-time, and foreign students.

• One should withhold FIT (Federal Income Tax) from all summer employees unless their W-4 results in no withholding.

• FICA should be withheld from all workers, even those who receive Social Security benefits and high school students. (students under 18 working for sole-owner parents are exempt from this)

• Overtime is due for any time worked past 40 hours in the workweek, but is not required for paid time-off.

• And don’t forget that you may be eligible for 6.2% HIRE exemption from employer Social Security tax on the wages of summer help.
Be sure to read about The Roper Group’s new hires at http://bit.ly/ropernewemployees

(information contained in this article was found in the June 2010 edition of The General Ledger: The Complete Newsletter for Professional Bookkeepers)

Going GREEN

2010-07-20T10:52:00.001-04:00

"C'mon! Everybody's Doin' it!"
Tips for summer sustainability

• Mosquitoes are a pest in the summer months, but for some, chemical filled repellents aren’t worth it either. Using garlic or planting rosemary can ward off the summertime pests. If you need to pull out the big guns look into the Mosquito Magnet.

• Dehydration can be a person’s worst enemy and the risk of becoming dehydrated is substantially increased in the summer heat. Stay hydrated by using an at home water filter and carrying your own reusable water bottle. This reduces waste and is more cost effective!

• In your daily commute, try to avoid excessively high driving speeds. Gas mileage drops rapidly above 60 mph. Also, using the cruise control can help! It’s helps you maintain a constant speed and saves gas.

• Enjoy all the delicious tastes of summer this season and boost your local economy – eat locally grown foods. Besides being a fun way to spend an afternoon, farmer’s markets are great outlets for fresh fruits and veggies!

• Change your home and office lighting to energy efficient fluorescent bulbs. Not only will this simple change help you save money, it will save energy, too! If every American home replaced just one light with an Engery Star light it would prevent 9 billion pounds of greenhouse gas emissions – equivalent to the emission of 800,000 cars!

New Tax Credits Could Help You Save

2010-07-14T15:35:00.000-04:00

In April, the IRS starting sending postcards to small businesses to inform them of the new Small Business Health Care Tax Credit. Even though it may seem that April is ages ago, small businesses can (and should) check their eligibility and take advantage of the new legislation!

There are four main eligibility rules:

1. A qualifying employer must cover at least 50% of the cost of health care coverage for some of its worker’s based on single rate.

2. A qualifying employer must have less than 25 full-time workers (“full-time” being the key word here. Example: an employer having less than 50 part-time workers may qualify)

3. A qualifying employer must pay average annual wages below $50,000

4. Both taxable and tax-exempt firms may qualify

The credit can be claimed as part of the general business credit starting with the 2010 income tax return to be filed in 2011. If a small business meets these requirements, it may receive a credit of up to 35% for a small business’ premium costs in 2010. As of January 1, 2014, this credit increases to 50%. (remains 35% for tax-exempt employers) Also note that the credit phases out over time for firms whose average wages fall between $25,000 and $50,000 and for firms who maintain between 10 and 25 full time workers.

Tax laws are constantly changing and new legislation is forever been put into place or repealed. As a small business owner...or any business owner...it's worth it to keep up-to-date on what you qualify for and what could help you and your business!

For more information on this and other new tax legislation visit www.irs.gov.

Beating Unemployment

2010-06-30T11:04:00.000-04:00

In the volatile world of economic ups and downs, where unemployment in the United States hit almost 11% in recent months, job search tips haven’t been hard to come by. I think I’ve seen every “tip” under the sun over the past year or so, from “Shifting from a Stay at Home Mom to a Work from Home Mom” to “Beat the Recession: Go Back to School” - not to mention all the money saving “bail out” deals from local restaurants and retail stores. Through all the riffraff there is some useful and applicable advice, however. Here is what I think are the top five tips for finding a job and surviving and thriving in unpredictable economic times:

1. “Finding a job is a full-time job.” This is probably the best advice I have heard. So many people complain and find themselves in financial binds because they can’t find work, but how hard are they really trying? If you are willing to put in 40 hours a week in an office, put at least half that amount of time into finding that office to work in!

2. Be tenacious! The word tenacious is defined as being persistent in maintaining, adhering to, or seeking something valued or desired. Let’s break this down. In this situation, what is the value or desired item? Money (typically). How does one make money (typically)? By having a job and/or career. So, be persistent in seeking your job and/or career! While you don’t want to be described as pushy or desperate, any employer should feel that in your mind, THAT job is the most important one (regardless of how many for which you are currently applying). If you email a resume and receive no response within 24 hours, call for a polite follow-up; after a day or two has passed, hand deliver a resume and cover letter; if you are lucky enough to receive an interview, send a “thank you” note/email or call to say “thank you”. Be tenacious! Be persistent! Be polite! Stand out!

3. Be personal, not computerized. Everything in our lives has shifted to technology. We are (for all intents and purposes) an internet-based, tech savvy, “I have no idea what I’d do without my Smartphone” society and while that is wonderful for the most part, no electronic interaction will ever be as meaningful as face-to-face human interaction. Make the effort to hand deliver a resume - you never know when you might bump into someone important that has 5 extra minutes to spare. Customize your cover letter and resume to the targeted employer – don’t use a “one size fits all” mentality. In an interview, be prepared, but not overly rehearsed – you shouldn’t sound like you’re reading cue cards from across the room.

4. Do SOMETHING! People always say “Well, something is better than nothing,” and it’s absolutely true! While you look for the perfect opportunity, take this time to volunteer at a local organization. This gives you something productive to do while you continue to look for a job, not the mention the people you would be helping and the networking you can do. And there’s a chance that the volunteer position could turn into a paid position over time. Another aspect of “doing something” is taking a job when you get it. Most high-end executives would never consider ‘flipping burgers’ or filing papers, but if you’ve been laid off and need to support yourself and/or a family, nothing is too menial.

5. STAY POSITIVE!!! This is probably the most important and most difficult of all. In life, we can choose to wallow in our own self pity or we can choose to pull ourselves together and get on with our lives. If you’ve got to find a job, I highly suggest the latter of the two. In my opinion, nothing is more important than keeping a good attitude about your situation. In fact, being positive is the single most important skill you possess! Negativity fosters apathy – both of which do nothing but hold a person back.

QuickBooks Tip: Class Tracking

2010-02-21T14:46:00.007-05:00

To track income and expenses by any significant segment of your business, use the class tracking feature in QuickBooks. You can use class tracking for non-profits to track grants and restricted and unrestricted funds. You can also use class tracking to tracking multiple locations or divisions of a company. If you are doing business with the government, you could use class tracking to track fixed priced jobs vs. cost plus jobs, vs. overhead.

To turn on class tracking:

Go to the Edit menu and click on preferences, then Accounting preference.
Click on the company preference tab, the select the Use Class Tracking box.
Click OK

If you are using QuickBooks payroll, you can assign a class code to each employee. If it is important to assign employee time to multiple classes, you will need to change a preference:

Go to the Edit menu and click on preferences, then Payroll & Employees preference.
Click on the company preference tab, then select the Job Costing and Class Tracking for Payroll Expenses and Assign One Class per Earnings Item
Click OK

This will allow you to enter a class code for each item on an employee's paycheck. If you are using the QuickBooks time tracking feature (Edit, Preferences, Time & Expenses, then click on Yes to "Do you track time?"), you can further break down time by job and class code.

Once your preferences are in place, create the class codes you want to track (go to the List menu, click on Class List, click on Class at the bottom, and New, then enter a name for the class and click on next or OK). To properly use the class codes, be sure to enter the appropriate class code on every invoice, sales receipt, deposit, bill, check, journal entry, etc. that you create.

To create a report, Go to the Reports menu, then Company & Financial, then Profit and Loss by Class. Select the dates you want to include. If a column appears on the report called "Unclassified," these are income or expenses that have not been assigned a class code. Double click on the item and assign the appropriate code to have that income or expense appear in the correct column.

Note: You can also create a budget by class, if desired.

QuickBooks Tip: Memorized Transactions

2008-12-11T20:39:00.006-05:00

If you have any recurring transactions you may want to use the memorized transaction feature in QuickBooks. This feature will not only save you time but could also serve as a reminder to you or automatically post to give you a better understanding of your available cash.

Here is how it works.

To set up a memorized transaction:
1. Create the transaction you want to memorize (bill, check, estimate, invoice, etc.) as you'd like it memorized.
If the content of certain fields will change each time you recall the transaction, leave those fields blank (i.e. leave the amount field blank on your monthly cable bill). That way, you can fill in the amount each time you recall the bill.
2. Go to the Edit menu and click Memorize. In the Memorize Transaction window, enter a unique name that will help you recognize the transaction on the Memorized Transaction list. Choose whether you want to be reminded to enter the transaction, have QuickBooks enter the transaction for you, or neither. Click OK to memorize the transaction.
3. If you are only entering the transaction information for future use, close the transaction window by clicking the Clear button and then clicking the close box at the top of the window.

To use the memorized transaction:
1. Go to the Lists menu and click Memorized Transaction List.
2. Select the memorized transaction you want to use.
3. Click Enter Transaction.
4. Make any necessary changes or additions.
5. Save and close the transaction
Some examples where this feature would be helpful include:

An automatic debit to your bank account for a credit card or loan payment (we create a check and memorize it with a check number = dd for direct debit)
A bill you pay every month but don't receive a statement or invoice (i.e. rent) -either create a check or bill and memorize it. Code it to automatically post monthly.
A lengthy estimate that is frequently used - create an estimate with the items that are normally used, then memorize it with a unique name. When you click it on from your memorized transaction list, you can add a customer name and add or change any items.
Repetitive invoices to the same customer (you may want to group invoices by frequency - weekly, monthly, quarterly - to create a group, go to the Lists menu and click Memorized Transaction List, click Memorized Transaction at the bottom of the list and click New Group, enter the name of the new group, then choose how you want to manage the transaction group).

10 Tips for Surviving and Thriving in a Down Economy

2008-12-05T23:20:00.009-05:00

Right now our economy is on a roller coaster. To make sure your business not only survives but thrives, you need to be creative, cautious, and compassionate. Here are some tips that can help:

Keep your vision a reality
Write down your vision statement. Do you still believe it or have you strayed? What is your NEW vision?
Review your cash flow
Examine your credit policy: Are you invoicing properly? Do you provide clear information concerning terms? Do you maintain an aging accounts receivable report and are you promptly following up with delinquent accounts?

Examine your cash pay-outs: Are you taking advantage of trade discounts? Do you pay each bill only as soon as you have to? If temporary cash flow ia a problem, have you set up extended terms with your creditors? Remember to buy only what is needed, when it is needed (just in time inventory control).

Examine your payroll: Consider overtime, part-time and freelance before hiring new employees. Don’t pay all employees on the same day. Examine your salary for reduction during slack periods and increases during times of higher volume. Be careful about providing too many costly benefits. Offer employee discounts.

Examine your inventory controls: Be sure to check security to prevent theft. Instruct employees on proper handling to prevent breakage and damage. Don't be caught with obsolete inventory.

Examine your purchasing costs: Reduce number of items purchased. Reduce number of vendors. Eliminate unprofitable products. Don’t sacrifice quality for low prices unintentionally. Use recycled goods - i.e. a laser printer cartridge recycling service. Consider leasing: Leasing may be alternative to purchasing fixed assets.

Increase your available credit NOW: If you have good credit and are disciplined about using it, increase or establish credit lines at banks, ask for higher limits on credit cards, or apply for additional cards.

Reduce debt: Just because you have credit, doesn’t mean you need to use it. Reduce debt as much as possible. Move balance in high interest credit cards to fixed rate loans or lower interest credit cards.

Reduce discretionary spending: You will survive and thrive in tough times if you have sufficient cash to make it through. Don’t spend money on unneeded renovations, trips, etc.
Examine your marketing plans
Although it typically costs you six times more to sell something to a new customer than to an existing customer, you need to constantly work on increasing your customer base. Be willing to do whatever it takes to get a potential customer converted into a paying customer.

Be careful to target your market: The more you focus on the people/businesses who most likely want or need what you are selling, the more cost effective your marketing efforts are.

Look at alternatives for marketing your business: Don’t stop marketing but look for cost-effective marketing. Determine if coop advertising is available. Use woed of mouth marketing (networking) to market your business and tend your net! Remember marketing really begins once you’ve made the sale – follow-up, follow-up, follow-up and be sure to track your results!
Optimize your customer relations
Remember the 80/20 Rule: Which customers are you spending 80% of your time on? Which customers make up 80% of your dollars? These are the ones you want to focus on! Re-examine customers to make sure they’re profitable and dependable.

Provide good customer service: What is your vision of outstanding customer service. What does your customer expect?

Find a way to get more referral business. Give discounts/prizes for referrals. Have clear policy on returns and repairs and offer a guarantee. Use customer furnished materials
Focus on your selling skills
Reactivate dormant accounts: Sit down with your list of old clients and call them. Don’t make it a hard sell.

Help existing customers to create new sales for you: Suggest ideas for products or service that you can help your customer with.

Quote reasonable, affordable prices: Don’t lower your prices to rock bottom – remember the perception you may be giving potential customers about your business. Offer packaged pricing - add on pricing less than individually priced.

Postpone any planned fee increases: A down turn in the economy is NOT the time to increase your fees.

Repackage your products/services to accommodate smaller clients or reduced budgets – offer more do-it-yourself type services or no frill products with smaller minimum orders, better payment plans.

Add value to your existing products or services – offer faster delivery, larger selections, more colors, more options, easier payment terms, better guarantees.
Get your staff involved
Brainstorm new ideas. Involve them in the solutions. Create a positive work environment – make work a fun place.
Update your business plan
Update your financials and marketing strategies. Research the trends that are happening in your industry. Update your goals and strategies.
Utilize technology
Use technology to give you more sales and marketing time (automated accounting systems, database manager). Invest in innovations that can help you better compete or reduce costs (i.e. cable phone service)
Preserve and enhance your greatest asset: Yourself!
Reduce stress. Maintain a positive attitude (It’s not you aptitude but your attitude that determines your altitude).
Other areas
Keep good records. Barter. When you think you’ve covered it all - do it again!

Let me know some of the ideas you have utilized to thrive!

First Impressions Make a Difference

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What kind of first impression do you make with your potential customers? Grade yourself on the following items. Give yourself a “1” if you are really good or a “0” if you need to do some work in a particular area:

Your personal appearance: Are you always dressed appropriately and professionally? To your prospects, you represent your business 24/7.
Your attitude: Remember it’s not your aptitude but your attitude that determines your altitude. Your attitude is the single most important skill that you possess when dealing with people. Have you checked your attitude recently?
Your body language and tone of voice: People will believe your body language and tone of voice before they believe the words you say. What are you really “telling” your prospects?
Your greeting: Are you (or whoever answers the phone for you) professional and do you greet the caller with a smile in your voice? Do you let the caller know you are GLAD to help them? What about when you are face-to-face with them?
Your voice mail: Do you update your message frequently. Do you return calls promptly? Do you make it easy for your prospects to get in touch with you (i.e. automatically transfer your business phone to your cell phone when you are out of the office rather than make them wait or have to dial another number)?
Your business card: Do you include your logo, benefits of doing business with you, and all contact info? Is your card easy to read (remember those of us over 40 can’t always read fine print). Tip: Heavy card stock and raised lettering give a more professional image.
Your niche: Do you know what differentiates you from your competition? If you don’t know, how will your prospect?
Your 30 second commercial: Do you have one? A great format to use is the following: Hello, my name is ___. I’m with __. I help people by (primary benefit you provide). Give your memory hook or tag line. Repeat your name and company name to finish.
Your handshake: Is it a firm (not crushing) thumb to thumb shake? Or is it kind of wimpy, wet, or patronizing?
Your marketing materials: Are they professionally done and do they focus on the benefits (not features) that you provide? Do you consistently use your business identity on all materials (i.e. your logo, fonts, colors, slogan, etc.).

Your first impression may be the determining factor in whether the prospective customer does business with you or your competitor. Did you score a 10?

Understanding Your Business Financials

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One key to understanding what's happening in your business is to understand the numbers. As a business owner, it is certainly important to me to see if my business is profitable or not - but even more important is to see trends that are happening in the business. With QuickBooks (one of the most widely used accounting packages for small business), I can quickly see if we are profitable for the year by creating a Profit & Loss Standard Report with the Date box set to "This Fiscal Year-to-date." But even more important to me is to see the trends for the year. With a simple click of a button (changing the Columns box from "Total Only" to "Month") I can see what has happened month by month up to the current month. By reviewing this report on a regular basis, I can quickly spot trends (i.e. expenses increasing at a higher rate than income over a period of time could indicate a need for re-pricing).

Another report that I think is beneficial for looking at trends is QuickBooks' Profit and Loss Previous Year Comparison report.With this report, I can easily see how my business is doing this year compared to the same period last year. If you want to look at several years together, you can create the same Profit and Loss Standard Report discussed above and change the Columns box to "Year" and set the "From" and "To" dates to the years you want to view.

If you find that these are reports you want to review on a regular basis and you don't want to re-create them every time you want to see the data, then simply memorize the report with a unique name. To view again, you can go to the Reports tab or Report Center and click on memorized reports.

Other reports that I view on a regular basis include:

A/R Aging Summary report: This report shows all your outstanding receivables and, with a click of a button, you can drill down to see the invoices that make up the totals.

Unpaid Bills Detail report: This report shows you all your unpaid bills by vendor in due date order.

Sales by Customer Summary: This report will help you identify your best customers (you can sort by total and arrange by highest to lowest total). You could use this report if you want to make sure you are spending your time on the customers who are creating the revenue or to periodically reward your best customers.

Unbilled Costs by Job: If you assign a customer/job name to expenses and leave the billable box checked, you can pull these expenses into that customer's invoice. This report shows you a list of expenses you have coded as billable that have not yet been billed.

Profit and Loss by Class: If you are using classes in QuickBooks, this report will let you see income and expenses by those classes. It will also identify income and expenses that don't have a class assigned.

We will talk about other QuickBooks features and a variety of tips and resources to help your business in future postings.

Why Do We Blog?

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I teach classes on starting and running a business in community colleges all over North Carolina. Over and over, I see people getting started in business who may know their product or service, but don't have a clue about how to run a business. From developing your record keeping system to marketing to hiring your first employee, running a successful business takes a great deal of time, energy, expertise, and luck! The purpose of this blog will be to give some tips, tricks, and resources that may help you to be successful.