accounting

Advice I would give my kids, and why Profit First is included!

Advice I would give my kids, and why Profit First is included!

I don’t really give my kids much advice these days, unless they ask for it. They’re old enough now (35, 38, & 40) to find wisdom by themselves. In fact, I’m often learning from them. I remember the good old days too though, sharing things with them that would give them a leg up in life. I was often advising them on positive thinking and self-awareness, quoting things like: “what you think about, you bring about” and  “our thoughts create our reality”  and that “what someone says or does has nothing to do with you, and everything to do with them”. When they were growing up, I felt it was important that they have respect and kindness toward others, no matter what. I still do. Teaching good manners was huge too. They love to call me the “manners Nazi” because chewing with your mouth open, elbows on the table, or slouching are just bad form. Not sure if using the term “Nazi” in this way is considered acceptable anymore, but you get my meaning. I’m visiting my son this week, and it got me thinking about the advice I would give my adult children. Bar none, hands down, no competition Continue Reading »

Bookkeeping – Are you Stuck?

Bookkeeping – Are you Stuck?

Managing your own accounting incorrectly can hurt your business now and in the long-term. Bookkeeping is by far one of the most important aspects of starting and operating a successful company.  While it’s easy to get caught up in glamorous tasks like designing your website or choosing a logo, you will not survive without a solid understanding of the numbers. The streets of entrepreneurship are littered with former business owners who ignored the financials and discovered too late that they were operating at a loss, not a profit. Don’t just think about hiring a bookkeeper. Think about hiring a bookkeeper who will guide you so you can take your Profit First. For those of you stuck just thinking about the hiring aspect, you may want to pay attention to what Eileen P. Gunn from Entrepreneur has to say. “Entrepreneurs who hire accounting help usually discover they weren’t doing nearly as well on their own as they thought they were.”  Among other things, a great bookkeeper and Profit First Professional combo, will know when you should be setting money aside for the slow months. The subheading of Gunn’s article also hits the nail right on the head:  “When QuickBooks takes you Continue Reading »

Three Business Reports for more Control

Three Business Reports for more Control

A great business needs great financial organization. Why? Because those who “wing it” when dealing with things like revenue and expenses, eventually find themselves in a downward money spiral—that is really hard to get out of. Any serious landscaper or interior designer will tell you to properly measure the ratios of products you’re using, in order to get the most out of them. Otherwise, it’s just money down the drain. Know where your money is going, how often and why. For instance, when you have a clear understanding of your cost of goods for the month, you will be able to plan with greater ease the number of products needed for the following months. Then you will be able to see amounts of money spent and where best to apply it within the company. To get more control of your finances, maintain these 3 monthly reports. 1. Income report – Also known as the Profit and Loss Statement, shows a business its revenues vs. expenses within a monthly, quarterly or yearly timeline. The end result will be your net income or net loss (not to be confused with gross incomes or losses). Net income is company profit made after all business Continue Reading »

Startups with Financial Discipline will Thrive

Startups with Financial Discipline will Thrive

A room full of entrepreneurs will agree, that sometimes all it takes is a really good business idea, and everything else just falls into place. However, most of the time, the idea has to be worked and re-worked in order to turn into a well-calculated risk! Growing a business happens in stages. Like a sapling freshly planted in the ground, a new business requires a lot of attention before it is financially self-sufficient or stable. The story of the entrepreneur losing financial ground in its first or second year is a reality that may be construed as apathetic ownership or just plane ambivalence. The bottom line is, no one expects it to happen to them—and they shouldn’t… If they are keeping track of their finances correctly and exercising a great deal of financial discipline, even the toughest soil can produce a flower. Best practices for startup, after your launch: Do another solid review of your business plan. It’s important to look past the initial excitement of “lift-off”, with another hard look at your destination. When products and services sell, clients begin to notice your brand more, and as the onset of a larger bank account begins to occur, it’s easy to get Continue Reading »