Outsource Accounting & Outsource Bookkeeping
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How Outsourced Bookkeeping Works?
Simply throw your invoices, deposit slips and bills on the fax. Once or twice a day hit the speed dial and your source documents end up on our secure servers as PDF files in Allen Town, PA. We then link our PC to your PC. As we enter your transactions, reconcile your accounts and set your bills up for payment, you can watch the progress of your bookkeeping right from your computer. It takes us about 3 to 5 days to get a handle on your business, but the entire process ramps up very quickly. You can actually be out of handling your own bookkeeping by this time tomorrow.
I will take responsibility for getting your bookkeeping done faster, better and cheaper than you have ever experienced. I will help you build a great business by delivering on two promises:
* I will take away your bookkeeping headaches forever
*
I will provide complete and up to date books each morning when you come into work, with a 'score card' report of sales, profits and cash on hand.
Best of all, this can be done for about half of what a bookkeeper costs as an employee.
By providing accurate 'real time' and 'on line' bookkeeping, I will help you focus on what works in your company. In every small business 20% of what you do generates 80% of the net profits. We all know the 80/20 Pareto principle - but almost none of us have actually implemented it in our business. We will help you get it done as part of our outsourced bookkeeping service.
I will take responsibility for getting your bookkeeping done faster, better and cheaper than you have ever experienced. I will help you build a great business by delivering on two promises:
* I will take away your bookkeeping headaches forever
*
I will provide complete and up to date books each morning when you come into work, with a 'score card' report of sales, profits and cash on hand.
Best of all, this can be done for about half of what a bookkeeper costs as an employee.
By providing accurate 'real time' and 'on line' bookkeeping, I will help you focus on what works in your company. In every small business 20% of what you do generates 80% of the net profits. We all know the 80/20 Pareto principle - but almost none of us have actually implemented it in our business. We will help you get it done as part of our outsourced bookkeeping service.
The Real Reason Small Business Owners Don't get Rich
By Kc Truby
Cash Cow Accounting is an outsourced bookkeeping process designed to help business owners from 2 to 100 employees - get rich. It works because every time we can take the owner out of low value work (bookkeeping
is low value) and get them to focus on creating wealth (sales is high value) the business prospers. You can not get rich doing low value work, there are NO exceptions.
Rich is being in the top 1% of all households, that's $350,000 annual income and $1,500,000 in net worth. We are dedicated toward building business owners into that 1% club.
You CAN get rich owning your own business. Your business can generate positive cash flow - quite possibly becoming a virtual cash cow that only requires your time a few hours a week and still puts you in the top 1%. I'm going to show you how.
To get rich you may need a gigantic sales program, you might need $1,000,000 investor or you might need a CFO to guide your financials. You might need all three. But those are all problems that can be solved with a check book and as my doctor loves to tell me, "any problem that can be solved by a check book, is not a very big problem."
Now, getting rich and creating a virtual cash cow business won't happen unless you know the ONE most important rule of business. However, I won't just give you that rule - you have to discover it for yourself. Blabbing out some words of wisdom is like throwing water on a ducks back, it rolls right off. But you'll find the ONE rule right in front of you many times over the next year.
First thing to know today - it is not easy to get rich, but it is fun and any one can do it. The biggest obstacle you face is one of real estate. Not the location of your building, but the real estate between your left and right ear. To make it to the 1% you'll need knowledge, wisdom and the guts to take bold actions.
On this web site I'll show you how I went from high school drop out to the 1% club along with examples of how hundreds of others, that I personally know, made it too. I am volunteering to be your mentor. I want you to be rich. If you're rich, you'll hire more people, you'll buy more stuff, you'll give more to charity, you'll live longer, and by example you will teach your children and staff how to get rich too. Adam Smith was right - you and I are the wealth of nations. I am also hoping that you outsource your bookkeeping to our local accountant. They will become your interactive sounding board on creating wealth. From time to time we'll do joint teleconferences to provide some help on the way.
So now how tough will it be.
I was in a business start up conference last week where the speaker asked the audience how much money they believed their new business would net them per year. The lowest number in the room was $100,000. At $100,000 you're in the 5% club. Not bad, but not rich.
The sad truth is - that out of the 253 businesses that started in my community last month, only one will ever get to $1,000,000 in sales. At 10% profit (the average for small businesses) you must generate that much in annual sales just to take home $100,000. You're going to need to do even better if you want in the 1% club.
Why such bad results. Well out of the 253 (and these are the real businesses that have a license, bank account and phone number for the new company, so we're not talking MLM or affiliate deals here) 151 will go out of business entirely in the first 12 months. Most of those were just so unprepared they had no chance. Of the 102 that are left 50 more will fail in the next 4 years - that group had a chance, but they did not take the time to learn the ONE rule. Of the 52 remaining - only 1 will get to $1,000,000 in sales, the amount needed on average to make $100,000 income.
Those odds sound terrible, because they are terrible. But you can skip the trend. Here is the first step in getting to the 1%. Every night before you go to bed, make a list of the 3 things you should do the next day that will have the biggest impact on your business one year from today. Make the list before you go to sleep. In the morning tape the list on your PC and every time you think of it, look over at the list and ask this one question. "Is what I'm doing right now the most important thing I could be doing?"
Do this every day for the next week, and you'll start acting like a CEO, not the busiest and hardest working person in your company. So as we say in Wyoming when its time to go into action "Lets Ride."
is low value) and get them to focus on creating wealth (sales is high value) the business prospers. You can not get rich doing low value work, there are NO exceptions.
Rich is being in the top 1% of all households, that's $350,000 annual income and $1,500,000 in net worth. We are dedicated toward building business owners into that 1% club.
You CAN get rich owning your own business. Your business can generate positive cash flow - quite possibly becoming a virtual cash cow that only requires your time a few hours a week and still puts you in the top 1%. I'm going to show you how.
To get rich you may need a gigantic sales program, you might need $1,000,000 investor or you might need a CFO to guide your financials. You might need all three. But those are all problems that can be solved with a check book and as my doctor loves to tell me, "any problem that can be solved by a check book, is not a very big problem."
Now, getting rich and creating a virtual cash cow business won't happen unless you know the ONE most important rule of business. However, I won't just give you that rule - you have to discover it for yourself. Blabbing out some words of wisdom is like throwing water on a ducks back, it rolls right off. But you'll find the ONE rule right in front of you many times over the next year.
First thing to know today - it is not easy to get rich, but it is fun and any one can do it. The biggest obstacle you face is one of real estate. Not the location of your building, but the real estate between your left and right ear. To make it to the 1% you'll need knowledge, wisdom and the guts to take bold actions.
On this web site I'll show you how I went from high school drop out to the 1% club along with examples of how hundreds of others, that I personally know, made it too. I am volunteering to be your mentor. I want you to be rich. If you're rich, you'll hire more people, you'll buy more stuff, you'll give more to charity, you'll live longer, and by example you will teach your children and staff how to get rich too. Adam Smith was right - you and I are the wealth of nations. I am also hoping that you outsource your bookkeeping to our local accountant. They will become your interactive sounding board on creating wealth. From time to time we'll do joint teleconferences to provide some help on the way.
So now how tough will it be.
I was in a business start up conference last week where the speaker asked the audience how much money they believed their new business would net them per year. The lowest number in the room was $100,000. At $100,000 you're in the 5% club. Not bad, but not rich.
The sad truth is - that out of the 253 businesses that started in my community last month, only one will ever get to $1,000,000 in sales. At 10% profit (the average for small businesses) you must generate that much in annual sales just to take home $100,000. You're going to need to do even better if you want in the 1% club.
Why such bad results. Well out of the 253 (and these are the real businesses that have a license, bank account and phone number for the new company, so we're not talking MLM or affiliate deals here) 151 will go out of business entirely in the first 12 months. Most of those were just so unprepared they had no chance. Of the 102 that are left 50 more will fail in the next 4 years - that group had a chance, but they did not take the time to learn the ONE rule. Of the 52 remaining - only 1 will get to $1,000,000 in sales, the amount needed on average to make $100,000 income.
Those odds sound terrible, because they are terrible. But you can skip the trend. Here is the first step in getting to the 1%. Every night before you go to bed, make a list of the 3 things you should do the next day that will have the biggest impact on your business one year from today. Make the list before you go to sleep. In the morning tape the list on your PC and every time you think of it, look over at the list and ask this one question. "Is what I'm doing right now the most important thing I could be doing?"
Do this every day for the next week, and you'll start acting like a CEO, not the busiest and hardest working person in your company. So as we say in Wyoming when its time to go into action "Lets Ride."
The True Cost of an Employee
By Kc Truby
Are your employees costing you more than you think?
Do you ever feel like you are working for your employees, instead of them working for you?
That's because in most small businesses, the owner has no idea of the true cost of employees and it is one of the biggest reasons we suffer poor cash flow.
For example...
If you pay your bookkeeper $15 an hour, he/she can be costing your company $75,000 a year. When I bring this up I get a shocked response from business owners, they say "NO WAY, I only pay her 15.00 an hour plus 7% in employee taxes - no way bookkeeping costs me $75,000 a year."
We underestimate our true cost or burden rate and the locked in expense kills our cash flow if our business ever takes a down turn. Costs like medical insurance, phones, rent, computers, software, training, hiring, sick days and the 100 other little costs that add up. But those costs are chump change for a small business compared to the real expense.
The big cost is the owners' time. Your time MUST be spent looking for new and better customers. Any time you are dealing with a bookkeeper, you are losing sales to your competitor. The cost of finding a new employee and getting them trained on how you want things done can take up $5,000 to $15,000 of your time. That number never shows up on your Profit and Loss, it's hidden. But that is lost time - losing customers that won't buy today, and they won't be buying from you in a year. You have lost opportunities forever when you're dealing with back office tasks that don't need to be done.
Or what about the time you have to spend every day managing or 'interacting', as they say now a day at MBA school? How much does that wasted time cost?
Here is how to determine the 'burden rate' of an employee. Go to your Profit and Loss statement and look under payroll. Move the owner's payroll to overhead, because you are management, and that is where it belongs (in overhead). Now divide the total gross payroll into your total overhead and here is what you are going to find. That for every 1.00 you pay your employees, your cost is actually $2.40 to $2.60.
So that $15.00 an hour bookkeeper is actually costing you 36.00 an hour at the low end and and up to 39.00 if your office is a little nicer or your benefits above average. That's 39.00 an hour if you have work to do or not. That is $39.00 you are paying out every day and that is plum nuts for a small business owner.
If you want to improve your cash flow, look for jobs that do not affect the customer experience. Bookkeeping is one of the first to go. On this web page you'll find local accountants that can take that $75,000 burden rate, and cut it down to $15,000 to $25,000 a year. Plus - give you better numbers every morning and advice on how to run a better business.
Outsource your bookkeeping today, and start rounding up more cash cows.
Do you ever feel like you are working for your employees, instead of them working for you?
That's because in most small businesses, the owner has no idea of the true cost of employees and it is one of the biggest reasons we suffer poor cash flow.
For example...
If you pay your bookkeeper $15 an hour, he/she can be costing your company $75,000 a year. When I bring this up I get a shocked response from business owners, they say "NO WAY, I only pay her 15.00 an hour plus 7% in employee taxes - no way bookkeeping costs me $75,000 a year."
We underestimate our true cost or burden rate and the locked in expense kills our cash flow if our business ever takes a down turn. Costs like medical insurance, phones, rent, computers, software, training, hiring, sick days and the 100 other little costs that add up. But those costs are chump change for a small business compared to the real expense.
The big cost is the owners' time. Your time MUST be spent looking for new and better customers. Any time you are dealing with a bookkeeper, you are losing sales to your competitor. The cost of finding a new employee and getting them trained on how you want things done can take up $5,000 to $15,000 of your time. That number never shows up on your Profit and Loss, it's hidden. But that is lost time - losing customers that won't buy today, and they won't be buying from you in a year. You have lost opportunities forever when you're dealing with back office tasks that don't need to be done.
Or what about the time you have to spend every day managing or 'interacting', as they say now a day at MBA school? How much does that wasted time cost?
Here is how to determine the 'burden rate' of an employee. Go to your Profit and Loss statement and look under payroll. Move the owner's payroll to overhead, because you are management, and that is where it belongs (in overhead). Now divide the total gross payroll into your total overhead and here is what you are going to find. That for every 1.00 you pay your employees, your cost is actually $2.40 to $2.60.
So that $15.00 an hour bookkeeper is actually costing you 36.00 an hour at the low end and and up to 39.00 if your office is a little nicer or your benefits above average. That's 39.00 an hour if you have work to do or not. That is $39.00 you are paying out every day and that is plum nuts for a small business owner.
If you want to improve your cash flow, look for jobs that do not affect the customer experience. Bookkeeping is one of the first to go. On this web page you'll find local accountants that can take that $75,000 burden rate, and cut it down to $15,000 to $25,000 a year. Plus - give you better numbers every morning and advice on how to run a better business.
Outsource your bookkeeping today, and start rounding up more cash cows.
Knowledge Centered Selling; What its is and Why it is Important
Kc Truby
In this rapidly changing economy, you need the right tools to maintain a competitive edge and dominate your competition. As a long time salesman in one of the toughest industries to crack, (Accounting/outsource bookkeeping) I've found "Knowledge Centered Selling" to be a very valuable concept. It applies to all industries and is the process of teaching your customers how and when to buy from you.
Too often we believe that customers are strictly price driven, but have we considered that they may not know what other factors to consider when making buying decisions on the products and services you sell? Do you strictly talk about your physical product/service, or do you create a visual of the IMPACT your product or service will have on their business today, 3 months from today and a year down the road? The truth is if you create an ongoing stream of business productivity knowledge for your customers and prospects, you will significantly increase sales, differentiate yourself from the competition, and create long-term loyal customers.
I have been hired to conduct sales training for a variety of industries, and here I'd like to share an example of what I'm talking about in regards to "Knowledge Centered Selling". I had been asked to hold sales training sessions for a group of "copier" salesmen. We first tackled the best way to pick up more business from current clients, so I asked the question, "What are you really selling?" "The answer is NOT copies."
What they are selling is increased productivity gains, leading to a more efficient and profitable business. Our goal was to make sure the client understood this. After a new copier was placed, the dealer sent a follow up letter explaining the finer tips of maintenance. A few weeks later a fax was sent with details on efficient methods of keeping files organized. A month later a CD was mailed on how to run an office by check list, with templates included. We sent information on how to go paperless overnight. Every 20 days some form of Knowledge Centered Selling on running a better business was sent to the customer. Most of the knowledge had very little to do with the copier, BUT, the company increased sales to existing customers by 56% over the next 12 months.
The salesmen realized that if their customers believe they are buying a "box", they are going to try to buy that "box" as cheap as possible. On the other hand, if their customers perceive they are buying huge productivity gains, while gaining a valued business advisor, the next sale is a slam dunk and the relationship cemented.
Having completed our current client campaign, we moved on to the Knowledge Centered Selling concept for prospective customers. I explained that when a competitor is entrenched in a good account, there are two options available for getting the account to come your way. The most common is to cut prices to a point where profit margins are very slim. This is pretty short sighted for long term business health. Instead, I recommended the second method. Develop a series of informative letters similar to the ones going out to current buyers. I told them to limit the sales points about their equipment to one out of every three or four contacts. By teaching the prospect how to solve the office productivity problems in their company, the copier salesmen set themselves up as the "go to people" to solve office problems. They soon learned that even when a prospect did not buy, they received a much warmer reception and the prospect was a lot more forthcoming during the sales process. At the end of 12 months, the company experienced an increase in client base of 34%, not to mention the increased commissions paid out to the salesmen.
You may be asking, "But KC how can I create a pertinent information flow, when this is not my thing?" Creating the ongoing information flow can be accomplished two ways. First you can start clipping magazine articles, internet postings and excerpts from books that you personally found valuable. Have a staff member use these as guidelines for putting together helpful hints and tips. The second method is to call upon someone who has developed a complete Knowledge Centered Selling program in your industry and license the use of their program in your market. If you wish to create audio CDs (one of my favorite methods for touching customers) you can simply record productive ideas onto CD. Be sure to use a professional recording studio and put the knowledge in story format.
In summary, the more informed my customers are about my products and the impact they can produce in productivity gains, lifestyle, etc., the more likely they are to buy the real features they want and need. The more knowledgeable your prospect or client, the more they will buy from you.
If you'd like to share ideas or send me a question, I'd love to hear from you. KC kctruby@msn.com
Too often we believe that customers are strictly price driven, but have we considered that they may not know what other factors to consider when making buying decisions on the products and services you sell? Do you strictly talk about your physical product/service, or do you create a visual of the IMPACT your product or service will have on their business today, 3 months from today and a year down the road? The truth is if you create an ongoing stream of business productivity knowledge for your customers and prospects, you will significantly increase sales, differentiate yourself from the competition, and create long-term loyal customers.
I have been hired to conduct sales training for a variety of industries, and here I'd like to share an example of what I'm talking about in regards to "Knowledge Centered Selling". I had been asked to hold sales training sessions for a group of "copier" salesmen. We first tackled the best way to pick up more business from current clients, so I asked the question, "What are you really selling?" "The answer is NOT copies."
What they are selling is increased productivity gains, leading to a more efficient and profitable business. Our goal was to make sure the client understood this. After a new copier was placed, the dealer sent a follow up letter explaining the finer tips of maintenance. A few weeks later a fax was sent with details on efficient methods of keeping files organized. A month later a CD was mailed on how to run an office by check list, with templates included. We sent information on how to go paperless overnight. Every 20 days some form of Knowledge Centered Selling on running a better business was sent to the customer. Most of the knowledge had very little to do with the copier, BUT, the company increased sales to existing customers by 56% over the next 12 months.
The salesmen realized that if their customers believe they are buying a "box", they are going to try to buy that "box" as cheap as possible. On the other hand, if their customers perceive they are buying huge productivity gains, while gaining a valued business advisor, the next sale is a slam dunk and the relationship cemented.
Having completed our current client campaign, we moved on to the Knowledge Centered Selling concept for prospective customers. I explained that when a competitor is entrenched in a good account, there are two options available for getting the account to come your way. The most common is to cut prices to a point where profit margins are very slim. This is pretty short sighted for long term business health. Instead, I recommended the second method. Develop a series of informative letters similar to the ones going out to current buyers. I told them to limit the sales points about their equipment to one out of every three or four contacts. By teaching the prospect how to solve the office productivity problems in their company, the copier salesmen set themselves up as the "go to people" to solve office problems. They soon learned that even when a prospect did not buy, they received a much warmer reception and the prospect was a lot more forthcoming during the sales process. At the end of 12 months, the company experienced an increase in client base of 34%, not to mention the increased commissions paid out to the salesmen.
You may be asking, "But KC how can I create a pertinent information flow, when this is not my thing?" Creating the ongoing information flow can be accomplished two ways. First you can start clipping magazine articles, internet postings and excerpts from books that you personally found valuable. Have a staff member use these as guidelines for putting together helpful hints and tips. The second method is to call upon someone who has developed a complete Knowledge Centered Selling program in your industry and license the use of their program in your market. If you wish to create audio CDs (one of my favorite methods for touching customers) you can simply record productive ideas onto CD. Be sure to use a professional recording studio and put the knowledge in story format.
In summary, the more informed my customers are about my products and the impact they can produce in productivity gains, lifestyle, etc., the more likely they are to buy the real features they want and need. The more knowledgeable your prospect or client, the more they will buy from you.
If you'd like to share ideas or send me a question, I'd love to hear from you. KC kctruby@msn.com
Daily Progress Towards a Rewarding Life
Kc Truby
I have worked with thousands of business owners over the past 30 years, and have seen all too many of you sacrifice your health and quality time with your families, forgo favorite hobbies you enjoy, pass on much needed vacation time ... and for what?
In most cases, the wages you would earn working for someone else%u2026
As the old saying goes, "How is that working out for you?"
If you have found yourself in the same rut of having created a decent job for yourself, but not having created wealth and time to do the things you love, follow this advice and your life can change. The years of working too hard for the amount of money you make are now officially behind you. It is time work "smarter".
I am not the first to tell you that keeping a daily journal is an important key to success, but I will tell you it helped me to turn my business around and improve my personal life by staying focused on what is important. Implementing this key step in your daily routine, may be the best piece of advice I can ever give you.
On the linked pages listed below, I have shared my version of the daily and weekly worksheet I use to stay on track and focused in a number of areas. I start out Monday morning with a brainstorm session on what three projects I should work on that would have the biggest impact on my business. I look back at that sheet each morning, to keep me from getting sidetracked on tasks that will not create value.
Each day I reflect on what I love doing and I write it down. Those are the things I want to do more of. I keep track of my weight and the water I consume, because what gets measured gets managed. I include a section to remind me to make time for prayer, my spouse, kids, and time to think, nap and socialize.
I write down my daily successes and any new ideas I have, good or bad. I take notes on my thoughts throughout the day. I know to function at the highest level possible, I need to engineer those tasks that I hate doing out of my daily life, so I have a section for "pigs that got to my desk" and thoughts on how to get rid of them.
Customize this sheet to fit your needs. Trust me, and make a commitment to use this log every day for 30 days. If you do this, you will see a significant positive impact on your bottom line, a restructuring of your tasks and that of your staff that will not only increase your efficiency, but make work "fun" again for all involved. You CAN get back to that deep found joy in your personal AND business life. I am confident you will be so amazed at your results in one month that you will continue to journal daily.
As they say in Wyoming when it is time to go into action, "LET'S RIDE!" KC kctruby@msn.com
In most cases, the wages you would earn working for someone else%u2026
As the old saying goes, "How is that working out for you?"
If you have found yourself in the same rut of having created a decent job for yourself, but not having created wealth and time to do the things you love, follow this advice and your life can change. The years of working too hard for the amount of money you make are now officially behind you. It is time work "smarter".
I am not the first to tell you that keeping a daily journal is an important key to success, but I will tell you it helped me to turn my business around and improve my personal life by staying focused on what is important. Implementing this key step in your daily routine, may be the best piece of advice I can ever give you.
On the linked pages listed below, I have shared my version of the daily and weekly worksheet I use to stay on track and focused in a number of areas. I start out Monday morning with a brainstorm session on what three projects I should work on that would have the biggest impact on my business. I look back at that sheet each morning, to keep me from getting sidetracked on tasks that will not create value.
Each day I reflect on what I love doing and I write it down. Those are the things I want to do more of. I keep track of my weight and the water I consume, because what gets measured gets managed. I include a section to remind me to make time for prayer, my spouse, kids, and time to think, nap and socialize.
I write down my daily successes and any new ideas I have, good or bad. I take notes on my thoughts throughout the day. I know to function at the highest level possible, I need to engineer those tasks that I hate doing out of my daily life, so I have a section for "pigs that got to my desk" and thoughts on how to get rid of them.
Customize this sheet to fit your needs. Trust me, and make a commitment to use this log every day for 30 days. If you do this, you will see a significant positive impact on your bottom line, a restructuring of your tasks and that of your staff that will not only increase your efficiency, but make work "fun" again for all involved. You CAN get back to that deep found joy in your personal AND business life. I am confident you will be so amazed at your results in one month that you will continue to journal daily.
As they say in Wyoming when it is time to go into action, "LET'S RIDE!" KC kctruby@msn.com
Understanding the Lost Cost Opportunity
Kc Truby
Back in 1984, my business was doing poorly. One Sunday morning I heard a televangelist on TV make a statement that got my attention. He said, "No one is out of money; they are just out of ideas." It came to me right then, a revelation, that my business was about as stagnant as a little farm pond with moss growing over the top.
We were doing the same old tired stuff, the same old tired way. Our customers and staff were no longer excited. More importantly, I was bored and no longer having fun in business. A business is just like nature. When something stops growing, it starts dying. We were slowing dying, and I hadn't seen it coming.
I was in an idea drought%u2026
Trust me, with the onset of the information age, a lack of ideas can COST you. The biggest cost is lost opportunity. In my business, a customer is worth an average of $20,000 a year. Most stay with us for 5 years. That means that anytime I do not get a new customer, I am losing $100,000. That is called the lifetime value of a customer. You need to run these numbers in your own business, to put perspective on what you are doing today. With no new ideas, no new reasons to buy, no new ways to bring in prospects, I am losing $100,000 over and over again.
Opportunity cost is a hard concept to grasp. It is losing what you do not have, what you cannot see, and on what you cannot borrow. Now THAT is tough to get worried about, but you need to rethink this.
Let me give you an example to make the concept clear. If I have a cow that I do not breed with a bull at the right time of the year, I cannot get her SET. (Ranch talk for "being in the motherly way.") If I do not get her SET, I am not going to have a calf next spring, a calf that I can sell or raise to breed in the future. If that cow does not calve, I do not lose anything, right? I still have the cow. What I lose is the opportunity to sell a calf.
The cost of lost opportunity is always on the minds of successful business owners. You need to consistently factor this into the equation, in order to take your business to new heights. It is a new "secret weapon" to add to your arsenal of sound business practices, as you evaluate each move you make in your company.
Fear of loss is strong. The fear of lost opportunities is a strength.
Over the past 20 years, I have talked with thousands of business owners. I have applied my own business experience and the shared experience of those thousands of business owners to my own business. I have discovered several methods of increasing the number of potential customers and turning them into long term customers. I would like to share some of those methods with you, so check back, as I will be posting ideas on a regular basis.
KC Truby
We were doing the same old tired stuff, the same old tired way. Our customers and staff were no longer excited. More importantly, I was bored and no longer having fun in business. A business is just like nature. When something stops growing, it starts dying. We were slowing dying, and I hadn't seen it coming.
I was in an idea drought%u2026
Trust me, with the onset of the information age, a lack of ideas can COST you. The biggest cost is lost opportunity. In my business, a customer is worth an average of $20,000 a year. Most stay with us for 5 years. That means that anytime I do not get a new customer, I am losing $100,000. That is called the lifetime value of a customer. You need to run these numbers in your own business, to put perspective on what you are doing today. With no new ideas, no new reasons to buy, no new ways to bring in prospects, I am losing $100,000 over and over again.
Opportunity cost is a hard concept to grasp. It is losing what you do not have, what you cannot see, and on what you cannot borrow. Now THAT is tough to get worried about, but you need to rethink this.
Let me give you an example to make the concept clear. If I have a cow that I do not breed with a bull at the right time of the year, I cannot get her SET. (Ranch talk for "being in the motherly way.") If I do not get her SET, I am not going to have a calf next spring, a calf that I can sell or raise to breed in the future. If that cow does not calve, I do not lose anything, right? I still have the cow. What I lose is the opportunity to sell a calf.
The cost of lost opportunity is always on the minds of successful business owners. You need to consistently factor this into the equation, in order to take your business to new heights. It is a new "secret weapon" to add to your arsenal of sound business practices, as you evaluate each move you make in your company.
Fear of loss is strong. The fear of lost opportunities is a strength.
Over the past 20 years, I have talked with thousands of business owners. I have applied my own business experience and the shared experience of those thousands of business owners to my own business. I have discovered several methods of increasing the number of potential customers and turning them into long term customers. I would like to share some of those methods with you, so check back, as I will be posting ideas on a regular basis.
KC Truby
Real Time Accounting & Outsourced Bookkeeping: This is waht we do.
Kc Truby
With advancements in the design of bookkeeping and accounting software, it is now possible to make daily appraisals of the effectiveness of business operations. The daily use of available reporting tools permit the business owner to run a faster, better, and cheaper operation.
The AICPA (American Institute of Certified Public Accountants) has established a new framework for financial reporting. While this Enhanced Business Reporting Model (EBRM) is oriented toward public reporting entities, it is beneficial for privately held businesses as well.
The EBRM is supported through what Ron Rael calls, "The 3 Rs of Real Time Reporting." These are: REFLECTIONS OF REALITY; REPORTING FASTER, BETTER, AND ON TARGET and REENGINEERING THE BUSINESS PROCESS". The job of the primary financial advisor is to assist clients in reaching their goals through better and timely decisions. In other words, help the client recognize the principles of cause and effect: "When I do this; that is what happens."
Real time accounting and reporting provides the business owner with immediate feed-back and results from yesterday's actions. This feed-back keeps the owner focused on the most critical issues they are facing and prevents them from getting off-track. The reports a business owner should track daily include: the day's profit & loss, the day's sales, the day's accounts payable and receivable situation, and the current cash balance.
According to Ron Rael, accountants should communicate the following to clients:
Explain new reporting rules
Post the score
Recognize the efforts
Reward the improvement
Raise the bar for measuring success
Think about real time reporting in the sense of a baseball game. If there is no score keeper, how do we know who won, who lost? If there is no statistician how can we tell who was the best player, what happened to the batting averages, what was the pitcher's earned run average, who was the worst player and should be traded? It is the same for every business.
You do need a good structure for your real time reporting system. For users of QuickBooks®, that structure is in place through the 5 reports noted above and the "Company Snapshot" dashboard. This is a presentation of the business results as the door opened this morning.
Last year our basic metric of performance was the primary equation: Revenue-Expenses=Profit. This year and for the years to come the metrics have been changed to: People x Processes = Profit and Decisions x Activities = Performance.
Moving a business from historic batch processing and end of period adjustments, (then waiting weeks to see the results), requires a change of mindset so that planning, budgeting, and forecasting become the framework for measuring the key performance indicators of the business. It includes all levels of the business from the employee on the floor first and mid-level management up to the CEO and any other executives.
The on-line outsourced bookkeeper and accountant become the client's CFO/Controller and guide and provide a clear map to the business owners' success. If you are not getting this from your financial service provider, you should talk to a Cash Cow Accountant.
Richard Robinson, CPA Santa Fe Business Solutions
www.cashcowaccounting.com
The AICPA (American Institute of Certified Public Accountants) has established a new framework for financial reporting. While this Enhanced Business Reporting Model (EBRM) is oriented toward public reporting entities, it is beneficial for privately held businesses as well.
The EBRM is supported through what Ron Rael calls, "The 3 Rs of Real Time Reporting." These are: REFLECTIONS OF REALITY; REPORTING FASTER, BETTER, AND ON TARGET and REENGINEERING THE BUSINESS PROCESS". The job of the primary financial advisor is to assist clients in reaching their goals through better and timely decisions. In other words, help the client recognize the principles of cause and effect: "When I do this; that is what happens."
Real time accounting and reporting provides the business owner with immediate feed-back and results from yesterday's actions. This feed-back keeps the owner focused on the most critical issues they are facing and prevents them from getting off-track. The reports a business owner should track daily include: the day's profit & loss, the day's sales, the day's accounts payable and receivable situation, and the current cash balance.
According to Ron Rael, accountants should communicate the following to clients:
Explain new reporting rules
Post the score
Recognize the efforts
Reward the improvement
Raise the bar for measuring success
Think about real time reporting in the sense of a baseball game. If there is no score keeper, how do we know who won, who lost? If there is no statistician how can we tell who was the best player, what happened to the batting averages, what was the pitcher's earned run average, who was the worst player and should be traded? It is the same for every business.
You do need a good structure for your real time reporting system. For users of QuickBooks®, that structure is in place through the 5 reports noted above and the "Company Snapshot" dashboard. This is a presentation of the business results as the door opened this morning.
Last year our basic metric of performance was the primary equation: Revenue-Expenses=Profit. This year and for the years to come the metrics have been changed to: People x Processes = Profit and Decisions x Activities = Performance.
Moving a business from historic batch processing and end of period adjustments, (then waiting weeks to see the results), requires a change of mindset so that planning, budgeting, and forecasting become the framework for measuring the key performance indicators of the business. It includes all levels of the business from the employee on the floor first and mid-level management up to the CEO and any other executives.
The on-line outsourced bookkeeper and accountant become the client's CFO/Controller and guide and provide a clear map to the business owners' success. If you are not getting this from your financial service provider, you should talk to a Cash Cow Accountant.
Richard Robinson, CPA Santa Fe Business Solutions
www.cashcowaccounting.com
Benefits of Outsource Bookkeeping and Accounting Services
Written By James M Lee
Bookkeeping is one of the most important functions for any company. It is responsible for managing and tracking financial operations and help to take financial decisions. Bookkeeping services is inclined to name a task that is to keep records of transactions that go through every day. Any business, whether large scale or medium-scale limited scale, things like the bookkeeping records are not easy to store in proper manner.
Accounting is an important task for small and large financial firms. Bookkeeping and accounting provides financial solutions and techniques that can be useful for each and every business. However, bookkeeping must be done carefully. In fact, bookkeeping and accounting is the reference through which one can know about the demand for the company.
Many accounting firms offer specialized bookkeeping services allowing you to spend your valuable time focusing on your business. Common bookkeeping services helps in small businesses to save time and money with proper record keeping. Many accounting service providers now use QuickBooks software, to manage accounts receivable and accounts payable, invoicing, bank reconciliations; filing quarterly taxes, check reconciliations preparation and collections.
Bookkeeping services are of two types. First is the manual bookkeeping and the second is computed bookkeeping. If one is running a small business, then he or she can manage business through manual clerking. However, if you have an average midsize or large business, having, chooses computerized bookkeeping will be ideal for you to keep your business.
Now days accounting can be done online and because of this any one can use the online bookkeeping facilities. You must be thinking how online bookkeeping services can be better or beneficial from traditional bookkeeping services? Keep on reading to know the benefits of online bookkeeping and accounting:
Less Expenditure
Speedy Work
Fewer Requirements
Hire a dedicated Accountant
Communication Facility
If you want to save time for main processes of your business then outsource your accounting services is the best option. After outsourcing these bookkeeping services, you can also focus on other important processes of your business. So, now you just have to choose the best bookkeeping service provider who can serve you the accurate bookkeeping services.
Accounting is an important task for small and large financial firms. Bookkeeping and accounting provides financial solutions and techniques that can be useful for each and every business. However, bookkeeping must be done carefully. In fact, bookkeeping and accounting is the reference through which one can know about the demand for the company.
Many accounting firms offer specialized bookkeeping services allowing you to spend your valuable time focusing on your business. Common bookkeeping services helps in small businesses to save time and money with proper record keeping. Many accounting service providers now use QuickBooks software, to manage accounts receivable and accounts payable, invoicing, bank reconciliations; filing quarterly taxes, check reconciliations preparation and collections.
Bookkeeping services are of two types. First is the manual bookkeeping and the second is computed bookkeeping. If one is running a small business, then he or she can manage business through manual clerking. However, if you have an average midsize or large business, having, chooses computerized bookkeeping will be ideal for you to keep your business.
Now days accounting can be done online and because of this any one can use the online bookkeeping facilities. You must be thinking how online bookkeeping services can be better or beneficial from traditional bookkeeping services? Keep on reading to know the benefits of online bookkeeping and accounting:
Less Expenditure
Speedy Work
Fewer Requirements
Hire a dedicated Accountant
Communication Facility
If you want to save time for main processes of your business then outsource your accounting services is the best option. After outsourcing these bookkeeping services, you can also focus on other important processes of your business. So, now you just have to choose the best bookkeeping service provider who can serve you the accurate bookkeeping services.
How to Evaluate Your Outsource Bookkeeping Service Provider
Written By Sukant Senapaty
Outsourcing of any business function is one of the toughest calls any business has to take. It is never an easy decision to entrust any service provider with the internal business responsibilities, which are so vital to the existence of the business. So proper analysis of the outsourcing vendors capabilities are needed before making any decisions about outsourcing bookkeeping.
The following points should be taken into consideration to evaluate the capabilities of outsourcing vendors:
1) Evaluation before getting into an agreement: Due research about the vendors background should be done before getting into any contractual relationship. This becomes more so important in the case of outsource of accounting works because it involves the transfer of confidential data to third parties whom you have never met or seen. Searching for the company's detail in search engines in the initial stages of discussion is one of the things that give fair idea about the background of the company. Similarly getting the details of the clients served by the vendors and checking about the background of the company is always a better idea.
2) Precautions at the time of drawing the contract: The contract is the basis of any future working relationship with the vendor. It should thus become the basis of evaluation of the vendor's performance. The contract with the outsource provider should be very specific about accountability and avoids confusion for either party. The contract should outline the tasks to be performed and should be open for revision for both the parties. Appraisals at regular interval to gauge the efficacy of the outsource service provider based on agreed lines should be undertaken.
3) Evaluation during the Process: To know whether outsourcing is able to meet on its desired objectives, the performance of the outsource service providers needs to be gauged. The following points should be considered for this:
- The outsource bookkeeping service provider should allow internal oversight by the client so all parties can observe the progress of the account and ensure that the contract is being upheld.
- There should be standardized tools designed by the clients to keep track of work in progress at the vendors end. These standardized tools should consider everything from the performance of work based on agreed terms, desired quality level, time frame of delivery etc.
- The provider should furnish a summary of business data and information that affects the company. Such periodic stock taking measures demonstrate that the outsource provider is up to date on regulatory changes that affect the company.
- The service provider should also be tested along different lines as their capacity to deal with urgent and unforeseen accounting requirements or their ability to do trouble shooting etc.
4) Completion of the assignment: Once an assignment has been completed, a performance appraisal needs be carried out by the client to estimate whether the outsource of bookkeeping function has been successful in meeting with the desired objective of the organization. Such an appraisal also discloses the area of shortfall and possible scopes for improvements for future outsource assignments.
Outsourcing of bookkeeping brings multiple benefits a company. But this also demands a patient and watchful approach by the Company. Proper evaluation technique can deliver on the company's expectation by actually reconciling the company's requirement with the desired result from outsourcing.
The following points should be taken into consideration to evaluate the capabilities of outsourcing vendors:
1) Evaluation before getting into an agreement: Due research about the vendors background should be done before getting into any contractual relationship. This becomes more so important in the case of outsource of accounting works because it involves the transfer of confidential data to third parties whom you have never met or seen. Searching for the company's detail in search engines in the initial stages of discussion is one of the things that give fair idea about the background of the company. Similarly getting the details of the clients served by the vendors and checking about the background of the company is always a better idea.
2) Precautions at the time of drawing the contract: The contract is the basis of any future working relationship with the vendor. It should thus become the basis of evaluation of the vendor's performance. The contract with the outsource provider should be very specific about accountability and avoids confusion for either party. The contract should outline the tasks to be performed and should be open for revision for both the parties. Appraisals at regular interval to gauge the efficacy of the outsource service provider based on agreed lines should be undertaken.
3) Evaluation during the Process: To know whether outsourcing is able to meet on its desired objectives, the performance of the outsource service providers needs to be gauged. The following points should be considered for this:
- The outsource bookkeeping service provider should allow internal oversight by the client so all parties can observe the progress of the account and ensure that the contract is being upheld.
- There should be standardized tools designed by the clients to keep track of work in progress at the vendors end. These standardized tools should consider everything from the performance of work based on agreed terms, desired quality level, time frame of delivery etc.
- The provider should furnish a summary of business data and information that affects the company. Such periodic stock taking measures demonstrate that the outsource provider is up to date on regulatory changes that affect the company.
- The service provider should also be tested along different lines as their capacity to deal with urgent and unforeseen accounting requirements or their ability to do trouble shooting etc.
4) Completion of the assignment: Once an assignment has been completed, a performance appraisal needs be carried out by the client to estimate whether the outsource of bookkeeping function has been successful in meeting with the desired objective of the organization. Such an appraisal also discloses the area of shortfall and possible scopes for improvements for future outsource assignments.
Outsourcing of bookkeeping brings multiple benefits a company. But this also demands a patient and watchful approach by the Company. Proper evaluation technique can deliver on the company's expectation by actually reconciling the company's requirement with the desired result from outsourcing.
Outsourcing Bookkeeping Frees Up Time To Grow Your Business
Written By Amitaabh K Saboo
The onslaught of avant-garde technology today has found many scrambling to internet based services. From medical help to mortgage refinance and now outsourcing of bookkeeping and financial services are available online. This way business finds it cost effective and very efficient.
A detailed representation of the business accounting functions is painstakingly done by the professional accountants of the outsourcing firm. Virtually what the client has to do is merely fax or scan his documents and submit and bookkeeping is made simple. The professional help automatically takes out most of the hard work out of bookkeeping.
Bookkeeping could be server based. If the client does require that his accounts books be maintained in his own computer, the outsourcing bookkeeping connects to the client"%uFFFD's computer through the internet. This is done with the use of remote desktop access services. Then in the morning the client will find his books updated and simplified in his computer. This means that the client gets financial statements, reports, checks, sales invoices, and others on his own computer ready to print. This he can conveniently do without having to log in to any website and be bothered by the hassles that go with it.
Bookkeeping, by its inherent nature, necessitates a lot of paper work. It seems like the work is almost always never done on time. Accounting data entry, payroll preparation, cash flow, bank and credit card reconciliation, trial balance, accounts payable management and other bookkeeping tasks which need updates every month can be reorganized and restructured in few very easy steps. Completion of the project is within the time frame given and the cost does not go over the budget.
Outsourcing bookkeeping has different processes options to update your books. There is a wide array of options available where you can choose according to your requirements as to what is best for working conditions. The client also gets to choose the process option that he finds most efficient and the compatibility of resources in his environment.
The processes the client could choose from for outsourcing bookkeeping are Remote Access Based, Hosted Software Based, Server Based and Online Options. These are some of the processes that would suit your necessities and your convenience.
Another option is for the client to send the documents either by having them scanned or through fax. The bookkeeper logs on using an online service overnight. With the help of the software, she starts to update your books, and when done logs out. While you can take a look at your books the next morning and everything is already done!
The degree of security and protection in place is the highest available today. Information is treated as confidential and sensitive. Privacy is considered of utmost importance. That is why the best of encrypted technology is employed to make sure that there is no infringement committed on your data. Only authorized bookkeepers and accountants have access to client"%uFFFD's documents and books.
Outsource your bookkeeping today; and focus on those functions of their businesses that really matters for its growth.
A detailed representation of the business accounting functions is painstakingly done by the professional accountants of the outsourcing firm. Virtually what the client has to do is merely fax or scan his documents and submit and bookkeeping is made simple. The professional help automatically takes out most of the hard work out of bookkeeping.
Bookkeeping could be server based. If the client does require that his accounts books be maintained in his own computer, the outsourcing bookkeeping connects to the client"%uFFFD's computer through the internet. This is done with the use of remote desktop access services. Then in the morning the client will find his books updated and simplified in his computer. This means that the client gets financial statements, reports, checks, sales invoices, and others on his own computer ready to print. This he can conveniently do without having to log in to any website and be bothered by the hassles that go with it.
Bookkeeping, by its inherent nature, necessitates a lot of paper work. It seems like the work is almost always never done on time. Accounting data entry, payroll preparation, cash flow, bank and credit card reconciliation, trial balance, accounts payable management and other bookkeeping tasks which need updates every month can be reorganized and restructured in few very easy steps. Completion of the project is within the time frame given and the cost does not go over the budget.
Outsourcing bookkeeping has different processes options to update your books. There is a wide array of options available where you can choose according to your requirements as to what is best for working conditions. The client also gets to choose the process option that he finds most efficient and the compatibility of resources in his environment.
The processes the client could choose from for outsourcing bookkeeping are Remote Access Based, Hosted Software Based, Server Based and Online Options. These are some of the processes that would suit your necessities and your convenience.
Another option is for the client to send the documents either by having them scanned or through fax. The bookkeeper logs on using an online service overnight. With the help of the software, she starts to update your books, and when done logs out. While you can take a look at your books the next morning and everything is already done!
The degree of security and protection in place is the highest available today. Information is treated as confidential and sensitive. Privacy is considered of utmost importance. That is why the best of encrypted technology is employed to make sure that there is no infringement committed on your data. Only authorized bookkeepers and accountants have access to client"%uFFFD's documents and books.
Outsource your bookkeeping today; and focus on those functions of their businesses that really matters for its growth.
Real World Accounting for Small Business Owners
Written By Caroline Jordan
If you're like me, you love accounting. It's so fascinating and such an ingenious system. Don't you just think that Double Entry Accounting is the most beautiful creation of all humankind?
Okay, let's get real. You probably think accounting is boring and best left to pencil pushing geeks (like me!). I mean%u2026BOOORRRRING! Total Snooze-fest!
Well, my friend, I'm about to introduce you to Real World Accounting for Regular People. But, be careful, it just may change the way you look at accounting FOREVER! In fact, one of my clients looked up from a spreadsheet one day and said, "Wow, I never knew accounting could be FUN!" You just might have the same experience.
For starters, a lot of people think accounting is about math, which is an immediate turnoff. Although accounting does include math, it's more like a foreign language. All you need to do is learn the parts of that language that actually apply to you. Think about visiting a foreign country. You don't need to be fluent in the entire language. You just need to know the important things like what to order (or not order) in a restaurant, how to get directions, and how ask where the bathroom is. It's the same thing with accounting. You need to know what you need to know and the rest is unimportant. I mean, do you really need to know about corporate accounting practices or off shore financial transactions. Probably not.
So, how do you figure out what you need to know when you don't even know where to begin? Follow me and I'll show you!
The first thing you need to know is this. You must, must, must keep your personal finances and your business finances separate. Using your personal checkbook for all your transactions is a bad way to go. Here's why:
%u2022 The Internal Revenue Service wants to know that you have a very clear distinction between your personal affairs and your business affairs. They want details. If you try to pass off personal expenses as business expenses, you're violating tax laws. They don't like that.
%u2022 If you ever plan to borrow money for your business or get credit from your vendors, your lender or vendor will want to see detailed records of your business performance. Handing them your checkbook register is not going to make them want to give you money or sell to you on credit.
%u2022 You need to know how your company is performing at all times so you can plan ahead, make adjustments in your operations, and make informed decisions.
%u2022 The more accurate your records, the more accurate your tax return. It prevents you from missing deductions.
%u2022 It's the only way you'll know whether your business is making money or if you're just kidding yourself.
So, if you don't have a separate checking account for your business, go get one. It's easy and inexpensive and it will give you clarity on how your business is really doing.
The next step is your accounting system. Now, when I say "accounting system" I'm talking about an organized way of keeping track of your records. It can be computerized or it can be the old fashioned pencil and paper route. The important thing is that a) you have one and b) you use it.
Finding a System That Works For You
Your record keeping system needs to be designed so that it works for you. It should be:
%u2022 Simple to understand
%u2022 Flexible and adaptable to changing needs
%u2022 Inexpensive to develop and maintain
%u2022 Require little time to maintain
%u2022 Be handy and convenient to use
If you use a computerized accounting software package like QuickBooks, all those qualifications are met. I generally recommend QuickBooks to my clients because it's easy to use and you can also find local support for set up and troubleshooting. I don't whole heartedly recommend QuickBooks because I think parent company Intuit is losing touch with its core customer (we, the small business owners of the United States of America). There's too much nickel and dime-ing and poor support. But, at this point, it's still the most widely used system and certainly meets the needs of most small businesses as far as what it can do.
I do recommend that you get professional help in setting up your accounting system if you don't have an accounting background. It's a case of Garbage In Garbage Out. A well set up system will give you the best information with the least trouble. It's less expensive to have it set up right to begin with than it is to have it cleaned up later.
Whatever record keeping solution you choose for your business, the key to success is actually using it on a very regular basis. Otherwise, your business struggles and you're in constant danger of sliding into the Cash Flow Swamp.
Okay, let's get real. You probably think accounting is boring and best left to pencil pushing geeks (like me!). I mean%u2026BOOORRRRING! Total Snooze-fest!
Well, my friend, I'm about to introduce you to Real World Accounting for Regular People. But, be careful, it just may change the way you look at accounting FOREVER! In fact, one of my clients looked up from a spreadsheet one day and said, "Wow, I never knew accounting could be FUN!" You just might have the same experience.
For starters, a lot of people think accounting is about math, which is an immediate turnoff. Although accounting does include math, it's more like a foreign language. All you need to do is learn the parts of that language that actually apply to you. Think about visiting a foreign country. You don't need to be fluent in the entire language. You just need to know the important things like what to order (or not order) in a restaurant, how to get directions, and how ask where the bathroom is. It's the same thing with accounting. You need to know what you need to know and the rest is unimportant. I mean, do you really need to know about corporate accounting practices or off shore financial transactions. Probably not.
So, how do you figure out what you need to know when you don't even know where to begin? Follow me and I'll show you!
The first thing you need to know is this. You must, must, must keep your personal finances and your business finances separate. Using your personal checkbook for all your transactions is a bad way to go. Here's why:
%u2022 The Internal Revenue Service wants to know that you have a very clear distinction between your personal affairs and your business affairs. They want details. If you try to pass off personal expenses as business expenses, you're violating tax laws. They don't like that.
%u2022 If you ever plan to borrow money for your business or get credit from your vendors, your lender or vendor will want to see detailed records of your business performance. Handing them your checkbook register is not going to make them want to give you money or sell to you on credit.
%u2022 You need to know how your company is performing at all times so you can plan ahead, make adjustments in your operations, and make informed decisions.
%u2022 The more accurate your records, the more accurate your tax return. It prevents you from missing deductions.
%u2022 It's the only way you'll know whether your business is making money or if you're just kidding yourself.
So, if you don't have a separate checking account for your business, go get one. It's easy and inexpensive and it will give you clarity on how your business is really doing.
The next step is your accounting system. Now, when I say "accounting system" I'm talking about an organized way of keeping track of your records. It can be computerized or it can be the old fashioned pencil and paper route. The important thing is that a) you have one and b) you use it.
Finding a System That Works For You
Your record keeping system needs to be designed so that it works for you. It should be:
%u2022 Simple to understand
%u2022 Flexible and adaptable to changing needs
%u2022 Inexpensive to develop and maintain
%u2022 Require little time to maintain
%u2022 Be handy and convenient to use
If you use a computerized accounting software package like QuickBooks, all those qualifications are met. I generally recommend QuickBooks to my clients because it's easy to use and you can also find local support for set up and troubleshooting. I don't whole heartedly recommend QuickBooks because I think parent company Intuit is losing touch with its core customer (we, the small business owners of the United States of America). There's too much nickel and dime-ing and poor support. But, at this point, it's still the most widely used system and certainly meets the needs of most small businesses as far as what it can do.
I do recommend that you get professional help in setting up your accounting system if you don't have an accounting background. It's a case of Garbage In Garbage Out. A well set up system will give you the best information with the least trouble. It's less expensive to have it set up right to begin with than it is to have it cleaned up later.
Whatever record keeping solution you choose for your business, the key to success is actually using it on a very regular basis. Otherwise, your business struggles and you're in constant danger of sliding into the Cash Flow Swamp.
What to Expect From Outsourced Accounting Services
Businesses that outsource accounting functions are more productive and better prepared to weather economic difficulties. They are saving time and money by using accounting services that offer the best award-winning software, coupled with the accounting and clerical staff to maintain it.
If you are considering outsourcing this function for your small business, you are on the right track. However, like any decision, you will want to understand how it works and what concrete benefits your business will realize.
Cost Savings
Every business wants to save money, especially when struggling through difficult economic times. Outsourced accounting services are much more cost effective than maintaining in-house staff. An accountant will cost you between $40,000 and $70,000, plus another $30,000 for an assistant to handle the mundane aspects of recordkeeping. Add to that the cost of employee benefits and there is simply no comparison. Outsourced accounting services cost only a tiny fraction of employee expenses for the same professional services.
Saving Time
Accounting is one of the most time-intensive functions of your business. If you are a sole proprietor, you know the headaches simply maintaining a balance sheet can cause. In addition, tracking tax-deductible expenses and receivables takes up even more time. Here you have a recipe for lost productivity and sales.
By using outsourced accounting services, you can focus your time and energy on what you do best: growing your business. Let the accountants do what they do best by tracking your expenses and ensuring you gain the advantages of tax right-offs at year's end.
What You Get
Outsourced accounting services offer both the accounting and clerical staff needed to maintain your company's books. You can expect the service to set up, organize and maintain your accounting ledger, ensuring you have accurate information about your business finances at all times. They present that information to you with financial reports, statements and bank reconciliations.
In addition, outsourced accounting services take some of the burden off your human resources department, by maintaining employee time sheets and expense accounts. Your secretary will spend less time tracking purchase orders as well.
Finally, you will be ready at tax time because all of your expenses have been tracked and organized along the way. Outsourced accounting services ensure that you never miss a tax-deductible expense and that your quarterly tax filings are properly calculated, maximizing cash flow for your business.
If you are considering outsourcing this function for your small business, you are on the right track. However, like any decision, you will want to understand how it works and what concrete benefits your business will realize.
Cost Savings
Every business wants to save money, especially when struggling through difficult economic times. Outsourced accounting services are much more cost effective than maintaining in-house staff. An accountant will cost you between $40,000 and $70,000, plus another $30,000 for an assistant to handle the mundane aspects of recordkeeping. Add to that the cost of employee benefits and there is simply no comparison. Outsourced accounting services cost only a tiny fraction of employee expenses for the same professional services.
Saving Time
Accounting is one of the most time-intensive functions of your business. If you are a sole proprietor, you know the headaches simply maintaining a balance sheet can cause. In addition, tracking tax-deductible expenses and receivables takes up even more time. Here you have a recipe for lost productivity and sales.
By using outsourced accounting services, you can focus your time and energy on what you do best: growing your business. Let the accountants do what they do best by tracking your expenses and ensuring you gain the advantages of tax right-offs at year's end.
What You Get
Outsourced accounting services offer both the accounting and clerical staff needed to maintain your company's books. You can expect the service to set up, organize and maintain your accounting ledger, ensuring you have accurate information about your business finances at all times. They present that information to you with financial reports, statements and bank reconciliations.
In addition, outsourced accounting services take some of the burden off your human resources department, by maintaining employee time sheets and expense accounts. Your secretary will spend less time tracking purchase orders as well.
Finally, you will be ready at tax time because all of your expenses have been tracked and organized along the way. Outsourced accounting services ensure that you never miss a tax-deductible expense and that your quarterly tax filings are properly calculated, maximizing cash flow for your business.
Can Back of the Room Sales Increase Your Income?
By Kc Truby
85% of the profit that I have made in the last 12 years as a public speaker and seminar promoter have come from back of the room sales. A speaker who understands and loves selling from the podium will sell 25% to 60% of the attendees. The average order is between $100 and $300. This represents a tremendous amount of revenue that is often overlooked.
The value of B.O.R. should be considered when you establish the guidelines your speakers are to work under at your next booking. Last August I spoke the National Association of Tax Practitioners in Las Vegas and they did not want me to sell from the stage. So the negotiations began. I agreed to present my key note "Wild West Marketing" for a standard fee, but threw in two free work shops with in 24 hours if I could spend the last 5 minutes selling my "Tax Marketing Kit." They wanted to see the kit and the price sheet before signing, that was fine with me. After the conference, as I got back on the plane for Wyoming, I realized that I had tripled my speaking fee with book and tape sales.
By allowing me to sell my product the association in effect passed on part of my cost directly to the members. This allowed the association to get more speeches for the money and it allowed me to create new customer relationships with the members who bought my kit.
If a bureau had set up the agreement without realizing the value of kit sales, they may have missed a giant opportunity to increase the revenue from the engagement. A speaker's bureau that creates the proper selling environment, where none existed, deserves a commission on the back of the room sales.
The match between speaker and event must be carefully thought through. Sales people and business owners are big buyers of BOR. Social workers or teachers are not going to spend much at all. Some speakers are not strong sellers of product and you will not want to work out a BOR deal with them. Another question is returns and charge backs. Since the average return rate is 10% or less I recommend that you only ask for commission on 9 out of 10 sales. You will have to trust the speaker to handle this properly and may only wish to work with speakers who see BOR as the real money in this fine business.
KC Truby "The Lonesome Cowboy" is a professional speaker and salesman who lives on a ranch in Wyoming. He has sold over 1,000,000 Business Builder Training Tapes He specializes in sales and marketing presentations.
The value of B.O.R. should be considered when you establish the guidelines your speakers are to work under at your next booking. Last August I spoke the National Association of Tax Practitioners in Las Vegas and they did not want me to sell from the stage. So the negotiations began. I agreed to present my key note "Wild West Marketing" for a standard fee, but threw in two free work shops with in 24 hours if I could spend the last 5 minutes selling my "Tax Marketing Kit." They wanted to see the kit and the price sheet before signing, that was fine with me. After the conference, as I got back on the plane for Wyoming, I realized that I had tripled my speaking fee with book and tape sales.
By allowing me to sell my product the association in effect passed on part of my cost directly to the members. This allowed the association to get more speeches for the money and it allowed me to create new customer relationships with the members who bought my kit.
If a bureau had set up the agreement without realizing the value of kit sales, they may have missed a giant opportunity to increase the revenue from the engagement. A speaker's bureau that creates the proper selling environment, where none existed, deserves a commission on the back of the room sales.
The match between speaker and event must be carefully thought through. Sales people and business owners are big buyers of BOR. Social workers or teachers are not going to spend much at all. Some speakers are not strong sellers of product and you will not want to work out a BOR deal with them. Another question is returns and charge backs. Since the average return rate is 10% or less I recommend that you only ask for commission on 9 out of 10 sales. You will have to trust the speaker to handle this properly and may only wish to work with speakers who see BOR as the real money in this fine business.
KC Truby "The Lonesome Cowboy" is a professional speaker and salesman who lives on a ranch in Wyoming. He has sold over 1,000,000 Business Builder Training Tapes He specializes in sales and marketing presentations.
Audio Cassettes as a Premium "Hands up Marketing"
By Kc Truby
Set your self apart from the competition and increase your marketing response by 45% to 150% by using cassette tapes as a premium.
In my experience two major objectives drive marketing by accountants. First as a group accountants truly wish to help their clients live a more prosperous and rewarding life. Second, accountants want to be seen as someone who does more for their community then just fill out tax returns. When prospects know and understand the higher calling of the Practice Builder accountant it automatically generates a steady flow of quality prospects.
Knowledge Centered Selling by the use of audio cassettes can provide both. The accountant that teaches the prospect how to be more successful will set themselves apart from the "Bean Counters". The worst mistake an accountant can make in attempting to differentiating themselves in the market is using the cliché "We provide good service" to the prospect this is a meaningless comment. Every one says it. But as Clara used to say "Where's the beef"
Audio cassettes providing help on cash flow, tax planning, selling at high prices, hiring the right employees and finding new customers are tangible evidence that you are actually helping your clients live a better and more prosperous life
Giving away free audio tapes as a marketing tool truly sets you apart from every one else in the market. The strongest feature of giving away cassettes is the perceived value of cassettes. At Barns & Nobel an audio tape program cost $18.00 up to several hundred from mail order companies. A FREE offer to provide real answers to real problems gets you noticed.
The most powerful word in marketing is FREE. 2,700 advertising messages reach your prospects every day through newspaper, radio, bill board direct mail and even printed ink pens. But the word FREE will stops a prospect dead in their tracks to review what you are offering. It's just human nature.
I call this ""Hands up Marketing" a small ad or post card offering the FREE cassette will out pull standard marketing by 45% to 150%. Once a prospect has told you they are looking for solutions, by raising their hand and identifying themselves, the rest of the sale is easy.
Another popular use of free audio tapes is the referral gift. Practice Builders has promoted the idea of the referral gift for years. Cassettes make the perfect gift because they have such a high perceived value yet cost less then $2.00 in most cases. In the meantime the cassette offers a third party instruction on how to solve the problems that face the very people who you wish to help.
You can create your own audio tapes by writing the lessons you have observed from your own clients. The most effective cassettes are done in a story fashion. Take the information that your clients need and tell about your personal experiences regarding the solutions. Recording a cassette is actually pretty easy compared to video taping. In video you have to compete with Television producers who spend hundreds of thousands per hour to create top notch programming. In audio, you only have to compete with Howard Stern.
You may also wish to use cassettes that someone else has created. In the last several years I have sold over 1,000,000 cassettes to accountants across the country. They buy the tapes for 99 cents in large numbers down to $2.85 in small lots. The accountants' then private label the cassettes using Avery label #5198 and their laser printer. By putting your name, firm and phone on the cassette you have created a permeate billboard for your self. Tapes have a tremendous shelf life, many accountants report still having cassettes left over from Woodstock. When Practice builders called me about this article they were looking at a tape that I did in 1991. Five years ago.
500 accountants across the country currently use the Business Builder Training Tapes that I have created. During the past 4 years I have written 48 different tapes covering a wide variety of business problems.
In my experience two major objectives drive marketing by accountants. First as a group accountants truly wish to help their clients live a more prosperous and rewarding life. Second, accountants want to be seen as someone who does more for their community then just fill out tax returns. When prospects know and understand the higher calling of the Practice Builder accountant it automatically generates a steady flow of quality prospects.
Knowledge Centered Selling by the use of audio cassettes can provide both. The accountant that teaches the prospect how to be more successful will set themselves apart from the "Bean Counters". The worst mistake an accountant can make in attempting to differentiating themselves in the market is using the cliché "We provide good service" to the prospect this is a meaningless comment. Every one says it. But as Clara used to say "Where's the beef"
Audio cassettes providing help on cash flow, tax planning, selling at high prices, hiring the right employees and finding new customers are tangible evidence that you are actually helping your clients live a better and more prosperous life
Giving away free audio tapes as a marketing tool truly sets you apart from every one else in the market. The strongest feature of giving away cassettes is the perceived value of cassettes. At Barns & Nobel an audio tape program cost $18.00 up to several hundred from mail order companies. A FREE offer to provide real answers to real problems gets you noticed.
The most powerful word in marketing is FREE. 2,700 advertising messages reach your prospects every day through newspaper, radio, bill board direct mail and even printed ink pens. But the word FREE will stops a prospect dead in their tracks to review what you are offering. It's just human nature.
I call this ""Hands up Marketing" a small ad or post card offering the FREE cassette will out pull standard marketing by 45% to 150%. Once a prospect has told you they are looking for solutions, by raising their hand and identifying themselves, the rest of the sale is easy.
Another popular use of free audio tapes is the referral gift. Practice Builders has promoted the idea of the referral gift for years. Cassettes make the perfect gift because they have such a high perceived value yet cost less then $2.00 in most cases. In the meantime the cassette offers a third party instruction on how to solve the problems that face the very people who you wish to help.
You can create your own audio tapes by writing the lessons you have observed from your own clients. The most effective cassettes are done in a story fashion. Take the information that your clients need and tell about your personal experiences regarding the solutions. Recording a cassette is actually pretty easy compared to video taping. In video you have to compete with Television producers who spend hundreds of thousands per hour to create top notch programming. In audio, you only have to compete with Howard Stern.
You may also wish to use cassettes that someone else has created. In the last several years I have sold over 1,000,000 cassettes to accountants across the country. They buy the tapes for 99 cents in large numbers down to $2.85 in small lots. The accountants' then private label the cassettes using Avery label #5198 and their laser printer. By putting your name, firm and phone on the cassette you have created a permeate billboard for your self. Tapes have a tremendous shelf life, many accountants report still having cassettes left over from Woodstock. When Practice builders called me about this article they were looking at a tape that I did in 1991. Five years ago.
500 accountants across the country currently use the Business Builder Training Tapes that I have created. During the past 4 years I have written 48 different tapes covering a wide variety of business problems.
How Telephone Affects Business
By Kc Truby
How the phone is answered says a lot about any business. 8 out of 10 new customers have their first contact with you by phone. Most prospective customers loose a lot of confidence in your abilities when the phone is answered poorly. Low customer confidence leads to price shopping.
In our company we've worked on trying to instill confidence and comfort into every telephone call. When the phone rings. I have instructed my staff to, stop the task at hand, take a deep breath...when the second ring starts...smile and let out the big breath. Now you can't help but relax when you're smiling, breathing out, and not trying to finish a job. On that second ring, reach over and snatch that receiver up like you were John Elway at the 1st and ten...then announce the name of the company, your name. and then "HOW MAY I HELP YOU"...speak with articulation....pretend your telling your kids, across the room, to do something, with out yelling.
Your voice will come across clear and distinct. You'll make a good impression. Now if your on three other lines...be sure to ask permission to put someone on hold...say "please, may I put you on hold for just a moment" no one can get mad at you ask permission to set them aside.
Now you can't stop training your staff on this, because they forget. Recently I was headed to a meeting, and realized that I had forgotten an important report. So I car phoned back to the office to have them fax it to me.
I called my own office, some one says..."HOLD" and then complete silence. A few minutes later, young Jim came back on the phone, and I said, Could you tell me what "HOLD" means..."Does it mean I'm looking for work?"
Have fun today.
In our company we've worked on trying to instill confidence and comfort into every telephone call. When the phone rings. I have instructed my staff to, stop the task at hand, take a deep breath...when the second ring starts...smile and let out the big breath. Now you can't help but relax when you're smiling, breathing out, and not trying to finish a job. On that second ring, reach over and snatch that receiver up like you were John Elway at the 1st and ten...then announce the name of the company, your name. and then "HOW MAY I HELP YOU"...speak with articulation....pretend your telling your kids, across the room, to do something, with out yelling.
Your voice will come across clear and distinct. You'll make a good impression. Now if your on three other lines...be sure to ask permission to put someone on hold...say "please, may I put you on hold for just a moment" no one can get mad at you ask permission to set them aside.
Now you can't stop training your staff on this, because they forget. Recently I was headed to a meeting, and realized that I had forgotten an important report. So I car phoned back to the office to have them fax it to me.
I called my own office, some one says..."HOLD" and then complete silence. A few minutes later, young Jim came back on the phone, and I said, Could you tell me what "HOLD" means..."Does it mean I'm looking for work?"
Have fun today.
Using Direct Email To Your Advantage
By Kc Truby
Many business owners believe direct mail does not work. Yet, everyday you get 3 to 7 direct mail adds. The adds come from companies like Time-Warner, General Motors, or Proctor and Gamble. These are not small companies prone to making errors. It seems direct mail WORKS for somebody.
For the small business The most effective use of direct mail is generating repeat and referral business. Advertising in the media will cause people to inquire about your offer. When you hear from a new prospect or generate a new customer make a real effort to capture their name and address. Then key that information into popular contact management software like Sales Force or ACT.
The very first step is a thank you letter. How many times have you gone into a business for the first time and received a thank you letter the next day? What an impact that makes the very few times its happened. Even if the prospect did not buy, thank them for inquiring and ask them back again. People go where they are invited.
The next best use of direct mail is to send your customers and prospects a constant flow of information that will help them make positive decisions about you. For example a short letter with tips on how to solve a problem they might have. These letters are well received and build repeat and referral business. As long as they are short and valuable.
To make sure your mail is read follow these quick rules. Number one: everything important comes in a window envelope. So be sure to look important. No teaser copy, such as "You may have already won...." on the outside. Number Two: to be really effective, put a stamp on your letter....the first letters opened are the ones with stamps on them. Number Three: Mail merge the prospect or customers name in the address block. Today's software makes this so easy that it takes no extra time to make your letters look personalized. Number Four: sign your letters in blue ink, this individual touch really sets your letter apart.
Direct mail is a very targeted and personal medium. You can ask anyone you have ever met, for anything by mail. For example I constantly ask my customers who I should ad to my mailing list. I do this by saying "Who do you know who loves reading business books or going to seminars on how to improve profits? Please jot their name and company on this letter and I will send them a free subscription to these business tips."
Here's another fast tip on making your mail more effective.
The method of addressing your letters if very important. If you look like junk mail you are going to loose up to 70% of your marketing efforts over the wastebasket. To get opened (the real battle for mail) you must look personal.
The most effective way to get opened is to print the address on the outside of your envelope. Most laser printers are easily set up to accomplish this today. The second most effective method of addressing is the use of window envelopes. Almost everything important comes in a window envelope (such as bills, checks and even notices from the IRS) but the window is not as personal as addressing the envelope itself.
The most effective address of all is the hand address in a blue ink pen. You must be careful here. Some people will feel that your marketing message is not important enough to trick me into opening it by hand addressing. Besides at $5.00 an hour it cost 20 cents and envelopes to hand address. The cost may just be prohibitive.
Remember to use first class postage. The bigger and uglier the stamp the more likely you will get opened. On the inside you must sign the letter with a big blue ink pen, and if you really want it to work, highlight an important sentence on the first page with a yellow marker. To save time, I have a high school student sign my name, and highlight the important point for me.
So get busy, "Who do you know?"
For the small business The most effective use of direct mail is generating repeat and referral business. Advertising in the media will cause people to inquire about your offer. When you hear from a new prospect or generate a new customer make a real effort to capture their name and address. Then key that information into popular contact management software like Sales Force or ACT.
The very first step is a thank you letter. How many times have you gone into a business for the first time and received a thank you letter the next day? What an impact that makes the very few times its happened. Even if the prospect did not buy, thank them for inquiring and ask them back again. People go where they are invited.
The next best use of direct mail is to send your customers and prospects a constant flow of information that will help them make positive decisions about you. For example a short letter with tips on how to solve a problem they might have. These letters are well received and build repeat and referral business. As long as they are short and valuable.
To make sure your mail is read follow these quick rules. Number one: everything important comes in a window envelope. So be sure to look important. No teaser copy, such as "You may have already won...." on the outside. Number Two: to be really effective, put a stamp on your letter....the first letters opened are the ones with stamps on them. Number Three: Mail merge the prospect or customers name in the address block. Today's software makes this so easy that it takes no extra time to make your letters look personalized. Number Four: sign your letters in blue ink, this individual touch really sets your letter apart.
Direct mail is a very targeted and personal medium. You can ask anyone you have ever met, for anything by mail. For example I constantly ask my customers who I should ad to my mailing list. I do this by saying "Who do you know who loves reading business books or going to seminars on how to improve profits? Please jot their name and company on this letter and I will send them a free subscription to these business tips."
Here's another fast tip on making your mail more effective.
The method of addressing your letters if very important. If you look like junk mail you are going to loose up to 70% of your marketing efforts over the wastebasket. To get opened (the real battle for mail) you must look personal.
The most effective way to get opened is to print the address on the outside of your envelope. Most laser printers are easily set up to accomplish this today. The second most effective method of addressing is the use of window envelopes. Almost everything important comes in a window envelope (such as bills, checks and even notices from the IRS) but the window is not as personal as addressing the envelope itself.
The most effective address of all is the hand address in a blue ink pen. You must be careful here. Some people will feel that your marketing message is not important enough to trick me into opening it by hand addressing. Besides at $5.00 an hour it cost 20 cents and envelopes to hand address. The cost may just be prohibitive.
Remember to use first class postage. The bigger and uglier the stamp the more likely you will get opened. On the inside you must sign the letter with a big blue ink pen, and if you really want it to work, highlight an important sentence on the first page with a yellow marker. To save time, I have a high school student sign my name, and highlight the important point for me.
So get busy, "Who do you know?"
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Why Business Owners Want to Buy Outsourced Bookkeeping
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thekellyclarkson
Sep 26, 2011 @ 7:59 am | delete
- This is the best weblog for anyone who would like to find out about this topic. You recognize a lot its just about hard to argue with you (not that I in fact would want?HaHa). You definitely place a new spin on a matter that's been written about for years. Wonderful stuff, just wonderful!
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Jorge
Feb 8, 2011 @ 2:42 pm | delete
- I learned a lot from your articles. What are your thoughts on 40 year loans, do I really want to be paying a loan for that long?
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by KcTruby
KcTruby
Since 1987, KC Truby has taught 16,000 accountants how to find and sell more new business clients. 2,000,000 small business owners have his tapes on s... more »
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