Tom's Business Blog

Accounting Careers in Pontypridd

2010-04-05T22:24:00.001-07:00

Have you ever been to Pontypridd? You don’t read the name as it is written. Here’s how you read it – Pontyp’reath’ and not ‘ridd’. To avoid confusion, local residents simply call their place ‘Ponty’. Pontypridd is a small town in Wales with a population of only 29,781 back in 2001. You can find this town north of Cardiff city, about twelve miles. Even in such a small town, you can find accounting career opportunities.

You see, businesses exist all over the world; from the smallest town to the biggest cities. You know by now that business makes use of accounting. But it’s not only businesses which use accounting; even individuals use accounting in their everyday lives.

It’s no wonder if you can find accountants in Pontypridd. Since the town is small, you can’t expect a lot of employment opportunities but if you’re one of the best accountants in town or of you’re diligent with your studies, you’ve got yourself a job. You see, the accounting career is among the top choices of students and professionals these days.

There are many reasons why most people prefer the accounting profession but it doesn’t really matter. As long as you’re determined and motivated to become an accountant, you can still do that even in Pontypridd.

Most businesses nowadays rely on technology, in current business practices, and in updated laws. Because of this fact, there is a great need for CPAs to perform such difficult duties. Don’t be discouraged just because you live in a small town in Wales; if you like numbers and you’re a fast learner, you can take advantage of the job opportunities in the accounting field. You can find accounting graduates in corporations, public agencies, charitable organizations, and even educational institutions.

You can’t find world class colleges in Pontypridd but you can surely find accredited colleges and universities online which offers accountancy degree courses. As long as you have an internet connection, you can already search for these online colleges and choose one that you want to enroll.

Young and old alike can still take up a course in accounting especially on the internet. You can stay at home while you’re trying to earn a degree. Aside from that, some of the accreditations in accountancy can already be secured online. Thanks to the new technology of today, more people are given the opportunity to finish college despite the problems they encounter everyday.

Living in a small town like Pontypridd is not that bad. You can stay connected as long as there is an internet connection in your home. You can also meet new friends from around the globe. All you need to do is to surf the internet patiently until you come across the right accounting opportunity for you.

Some people don’t have the time to attend classes in school. If you lack the time probably because you have an existing career or if you’re taking care of the kids, take advantage of the internet’s power. Log online and see what you can discover about Pontypridd and the accounting careers available in town.

Don’t waste your future in a work that you’re not even satisfied or happy. Pursue a career in accounting that you really like; you must have the driving passion so that you can keep yourself motivated. That way, you can work peacefully and efficiently.

Accounting Auditing Careers

2010-04-01T20:53:00.001-07:00

Within the accountancy field, there are several career choices and that includes accounting auditing career. Auditors play a very important role especially in the business industry. They perform various tasks that are considered essential to the financial matters of any business.

A present, there is a great demand for company auditors and according to the labor bureau, the demand will still increase in the coming years. There are more employment opportunities in the accounting and if you still haven’t decided which career path to take, the accounting auditor career is an excellent choice.

Before, accountants and auditors are usually seen wearing coats and ties but due to the changes of today’s modern times, the persona of these professions have changed considerably. The auditing field alone is already on the brink of unbelievable growth. If you really like crunching numbers and you have a logical mind, auditing may be your thing.

Auditors are no longer considered as geeks or human calculators. Accountancy is an evolving profession and it’s no wonder why a lot of auditors nowadays are statistically savvy and are very sharp when it comes to business matters. Organizations and businesses are in great need of sharp and professional auditors to track their expenses and remain federally compliant. Being an auditor means that you’re a person of big responsibility.

Qualified auditors and accountants can take advantage of the many job opportunities in the market today. Government regulations and business processes are getting more and more complex these days; because of this fact, auditors are badly needed. How can you become an auditor?

Well, you need to finish a degree in accountancy and you also have to pass the CPA exams. Since auditing is a specialized profession, there are still other accreditations that you have to comply with. You can either study locally or you can also try online colleges. Just make sure the online college is accredited before you enroll.

Aside from online colleges, you can also get the necessary accreditations and certificates online. Entry level and master’s level certificates are now available online; advanced degrees are also available. You simply have to surf the internet to discover some of the opportunities that await you in order to become a competent auditor someday.

Again, it was mentioned earlier that you need to pass certain examinations like the CPA. How is that possible? Well, you simply have to prepare yourself. It’s just like taking your final exams in college. You should prepare your textbook materials, conduct group studies, and even online class session.

You can even secure samples of test questions that can be given during the exams. By doing so, you can easily pinpoint the specific areas that you’re still not good at; you have to study those weak areas so that when the day of the exam arrives, you will be prepared.

Accounting auditing careers are very popular these days. So what are you waiting for? If you think you posses the necessary qualifications and skills in order to become a competent and responsible auditor, why don’t you take up an accounting course in college?

This is great news for incoming college students and for those who want to shift careers. It’s really up to you. You have to be determined so that one day you can become a well-known auditor and many business and companies will be after your services.

Accounting/Accountancy Career: Steps to Success

2010-04-01T09:36:00.000-07:00

If you have an ambition in pursuing a career in accounting or accountancy, then you might want to start planning first before jumping into this field. This will enable you to become successful in achieving your career goals in the accounting field. Always remember that the first step to success is by having good knowledge and making the right decisions. So, here are the steps to success in order for you to become successful in your chosen career.

The first is that you should excel in math.

You have to remember that accounting is all about numbers and how to manipulate it. Therefore, you have to make sure that you are good at math in high school. A person who doesn’t like math doesn’t succeed in the accounting field. Take extra attention on your math subjects and always ask your teachers and counselors for guidance on which courses you must take if you plan on pursuing a career in accounting. This will help you out in making a clear path for your goals.

The second thing that you have to do is request information from a college or university you plan on attending about their accounting course offer.

Always remember that getting good education on your chosen course is very important. In this case, you have to choose a college or university that can offer you a solid education for their accountancy courses. Companies are particularly choosy when it comes to the educational background of their prospective accountants.

As mentioned before, information will get you well-prepared. So, the third thing that you should do is research on the requirements for becoming a Certified Public Accountant or a CPA. Although being a CPA is not required by companies, it is preferred. If you want to stand out when you are applying as an accountant in a company or an accounting firm, you might want to get certified. Basically, in order to become a CPA, you will need to get a bachelor's degree in accounting or in other courses related to business. By knowing what is required, you will be become better prepared when you are going to pursue a career in this field.

Also, if you are now going to start your first career or job, you will normally do it in your own state after graduating. So, try to know if you fulfilled the state requirements. If you don't, then you might get problems in starting your accounting career in the future.

Computers are now used in most companies today. Because of this, you have to know and become proficient with the different types of accounting software. Everything today is now computerized and not knowing how to work an accounting software program will lead to difficulty in finding jobs in the accounting field.

Experience is very valuable. Having more will mean opening up more career opportunities. So, try getting jobs that is related in the accounting field you choose.

Being prepared for your future career is what you should be doing if you have ambitions in starting a career in the accounting or accountancy field. By being prepared, you can be sure that you will not run into any problems in the future and ensure a smooth career path that can lead to your goals and success.

Accountancy Career: The Reasons Why You Should Choose Accounting

2010-03-30T21:00:00.001-07:00

Accounting or accountancy is one of the best careers available today. Accountants are always on demand and the fields or jobs that you can choose from are huge. This means that there are a lot of opportunities for having a career as an accountant and you also have a lot of career choice to choose from.

In accounting, you will see that there are lots of things that you can benefit from. Here, you will see that it will be able to help you gain experience in the field of accounting as well as learn a lot about the inner workings of businesses. It basically means that it will teach you on how to organize and run your own business.

In fact, most successful entrepreneurs started out as accountants. The knowledge they gained in this line of work eventually paid off and they are now continuing to build a business empire. If you too would want to become like most of the successful accountants today, then you will want to know the skills required in accounting.

Basically, the required skills are not that high except for two areas. The first is your analytical skills and the second is your computer skills.

If you compare the accounting field to other professions out there, you will see that most of it will require a skill, such as having some type of attention to detail as well as knowledge about computers. However, you have to remember that in accounting, there are different skills and knowledge needed than the rest of other professions.

Here, you don't need to know how to socialize with other people. You will work in a self-pressure environment only and you also do not need a high amount of initiative. It's not saying that accounting is much easier than other jobs, but it just means that it is different. It basically separates this profession from other types of careers.

The best feature in becoming an accountant is that you really don’t need special skills or talents in order to become one. Everything here can be learned and developed.

In accounting, the best thing about it would probably be the great pay. In fact, during your fist year as an accountant, it is very possible that you can earn as much as 55 thousand dollars a year. After ten years in this kind of career, you can be making money amounting to six figures. However, this can be achieved with patience and with dedication to your work.

If you want success in this field in a faster way, then furthering your degree in accounting is the way to go, such as becoming an MBA. Other types of careers take a lot longer to receive accreditation and this is the reason why accounting is a great career choice.

As you can see, it is not surprising why accounting is a very popular career choice. Although a lot of people are considering this type of career, you can be sure that you will never run out of jobs as an accountant as there are a lot of fields in accounting that you can enter.

So, if you want to be successful and you are looking for a good career choice, accounting or accountancy career can be your best choice, just remember to work hard and you should be dedicated in this line of work.

Accountancy Career Change

2010-03-30T09:24:00.000-07:00

There are times when you suddenly feel that there is a need to change your career path. If you are not satisfied with your present work, you have to decide the right career path to take. Life is too short and you should be doing a work that you truly love and enjoy.

There are various reasons why many individuals want to make a career change. Perhaps you find your job boring lately because of the low salary or you have higher ambition that you want to fulfill; well, whatever the reasons are, you can make that change in your life and you shouldn’t even fret about it. You see, nowadays, there are a lot of employment options and opportunities. You can already secure a high paying job for as long as you qualify and did you know that an accountancy career might be good for you?

Even if you’re not a graduate of an accounting degree, you can become an accountant. That’s not a lie but that can only happen if you’re willing to study again. You’re never too old to go to school. If you’re an undergraduate or you’ve taken a business-related course, you can pursue your college education in accounting. Those who have taken business-related courses can easily shift to accountancy because some of their subjects in college can be credited. They will only be taking the necessary units in order to finish the degree. Although it might take a few more years, the rewards can make your head spin. Be patient and don’t hesitate to gain more knowledge.

There are thousands or even millions of people out there who have decided to make a career change. If you’re planning to do the same thing, it’s a good feeling to know that you’re not alone in your quest. But before you make that ‘big’ career change, here are a few things to ponder.

1. You have to ask yourself why you want to change your career. Even if you can name a lot of reasons why you want to leave your old job, that will not help in making a good decision. What you must do is to identify the aspects of accounting (if you plan to make an accountancy career change). If you think that you have the qualities of an accountant and you feel that you can be creatively and commercially expanded, go ahead. Does the thought of math figures and numbers excite you?

2. Suppose the reason why you want to leave your job is the low salary, an accountancy career can give you a high salary. You see, starting salaries of accountants is usually around $35,000 per year. It increases as years go by. But you must remember that you can enjoy these salary benefits if you finished a degree in accounting.

3. Get to know people who are in the accounting industry. You can conduct some research to determine the necessary skills required, how business accounting works, and many more information.

Changing a career to accountancy can alter your life forever. You have to come up with a responsible and conscious decision. Once you’re already in the accountancy profession, you have to work carefully and diligently.

Keep yourself motivated because you will surely experience set-backs. If you can overcome these things, nothing vcan stop you in doing your job efficiently.

Accountancy Auditing Careers

2010-03-29T20:44:00.001-07:00

Within the field of accounting, there are a lot of career choices and accountancy auditing careers is just one. Auditing is very important and it is considered as an integral part of business finances. Auditors are greatly needed to examine, analyze, and verify the business finances.

The Bureau of Labor claims that accountancy auditors are in-demand at present and in the years to come. Employment of auditors is expected to increase eventually. If you’re still looking for an accountancy career, you might want to consider working as a company auditor.

What is an auditor? Auditors are also accountants. However, they primarily deal with examining and corroborating financial statements. The various statements are examined closely and the auditors make sure that everything will ‘add up’. Sometimes, inaccuracies and errors occur. The task of the auditor is to determine where these inaccuracies or errors exist. Aside from that, auditors develop certain courses of action to avoid future errors.

If you think that the task of the auditor is simply scrutinizing financial statements, you’re quite wrong. Auditors examine the various company bills and they ensure debit and credit accuracy. Errors are immediately corrected to avoid financial problems.

Government auditors are different from non-government auditors. You see, they are the ones who examine from different perspective – the tax perspective. Some filed tax returns are suspicious and so the task of the government auditors is to conduct an audit on the individual or business entity and check if it’s accurate. A very good example is a business who filed a tax return, claiming that they incurred many expenses.

IRS auditors will then check the said expenses to ensure that it meets the tax code criteria. If it does not meet the criteria, the company can be given penalties. Most tax auditors have bad reputations but they deserve more than that. You see, being a government auditor is among the top accountancy careers because they make sure that the people are honest enough to file their tax returns and that the government will not be cheated.

An accountancy career is technology driven. Many years ago, auditors work manually but nowadays, it’s a lot different. Present-day auditors should know how to work with computers and complicated accounting software or programs. This is the only way to keep up with technology and to stay competitive in the market.

If you want to become a company auditor someday, you have to graduate with a bachelor’s accounting degree. Certifications are oftentimes needed although some states don’t require it. More job opportunities are open to those who earned a Master’s degree as well as some certification.

Salary is a very important consideration when choosing a career. Auditors are earning a yearly salary of about $54,000. Senior auditors receive higher salaries which can reach as high as $80,000 per year. However, if you’re a new auditor, you can earn about $35,000 per year. You see, accountancy careers let you earn big money.

Starting salaries are reasonable and don’t you worry because after a several years, your salary will definitely increase. If accounting is your passion, choose an accountancy auditing career. Despite the bad reputations of auditors, you should still believe in yourself and that you’re going to have a decent job that let’s you earn reasonable salary.

Who cares what other people say; the important thing is that you’re doing an excellent job.

About the California Board of Accountancy

2010-03-26T19:44:00.000-07:00

The California Board of Accountancy is under the California Department of Consumer Affairs, and was established in 1901 by the California Accountancy Act. The California Board of Accountancy was created by the California government in order to protect California residents from fraudulent representation by public accountants. Since it's inception, the California Board of Accountancy has been responsible for licensing of California Certified Public Accountants as well as California Public Accountants.

The California Board of Accountancy is not only responsible for the licensing of California certified public accountants and California public accountants. The California Board of Accountancy is also responsible for making sure that candidates for the Uniform Certified Public Accountant Examination are qualified to take the examination and apply for a license from the California Board of Accountancy.

The California Board of Accountancy is also responsible for the regulation and registration of California certified public accountants partnerships and California public accountant partnerships, as well as California corporate partnerships.

Being charged with protecting California consumers, the California Board of Accountancy also has the authority to receive and investigate complaints of fraudulent or unethical activity against California consumers by California certified public accountants and California public accountants. In order to discipline certified public accountants and public accountants that violate Board statutes and regulations, the California Board of Accountancy may suspend a license, revoke a license, or place the licensee on a probationary period. The terms of the probation can vary based on the Board's decision and the facts of the case. Standard probationary terms are included in every act of discipline within the California Board of Accountancy. However, additional terms may be required during the probationary period if the California Board of Accountancy deems it necessary based on the facts of the case.

As a part of the authority and responsibility to monitor and discipline certified public accountants and public accountants, the California Board of Accountancy may monitor the compliance of certified public accountants and public accountants within California to ensure that continuing education requirements are met by all California licensees. This monitoring may also include examining the work of California certified public accountants and California public accountants. The examinations performed by the California Board of Accountancy are traditionally in the form of an audit of the certified public accountant or the public accountant records and financial statements.

The California Board of Accountancy is unique in several ways. First, the California Board of Accountancy examines and licenses more than 75,000 licensees, which is the largest group of licensed accountants in the nation. The California Board of Accountancy is also unique in that it has the ability to regulate not only individuals, but also California based firms.

As you can see, consumers in California are well protected from fraud, embezzlement, and other accountancy crimes that may occur when utilizing the services of a certified public accountant or public accountant. More so than any other state in the United States of America, the California Board of Accountancy certainly lives up to its mission of protecting California consumers, and regulating accountancy in California.

A Career in Accounting: Tips on How You Can be Successful

2010-03-25T23:00:00.000-07:00

In any type of businesses, an accountant is needed. You have to consider that accounting is basically the language in business and having enough knowledge about accountancy is essential for businessmen and women to know how their business is doing. This is why accounting professionals are very much in demand today. And, a lot of certified accountants have become quite successful in their field and some have even started their own business.

The great thing about this career is that it will enable you to interact with all levels of business and you will also learn a lot from it.

So, just what does it take to become an accountant and follow this career?

First of all, you need to know about the eligibility in becoming an accountant.

You need to be a graduate in a 4 year bachelor's degree in accountancy or any related field. Aside from this, an accountant should be able to have good analytical and technical expertise in business systems. Good mathematical aptitude is also a must-have for accountants. And, because computers are now one of the most used medium in computing, you should also have knowledge and the operating skills of a computer.

Another requirement is that you will need a bachelor's degree with a minor in another subject. This should be taken from an accredited college or university in order for you to apply for Master's in accounting.

You can also pursue this career if you had your course in accounting over distance learning programs or through the internet.

Also, you will need an accreditation or license of certain organization, such as being a CPA should have a license by the STA or the State Board of Accountancy.

Most companies also require that you should complete a number of semester hours as well as work hours, which are considered for a 4-year bachelor's degree. If you become a public accountant, you will be taken as a trainee. You will usually start your career as a junior internal auditor or as cost accountant.

It is recommended that you should have a master's degree in business administration or an MBA because it is preferred by more companies who are looking for accountants as part of their employees

The great thing about pursuing accountancy as a career is that it presents a lot of career opportunities. For example, you can get a job as auditors or accountants in government offices or in private companies even if you do not have any license.

During the course of your career, you can even get promoted to a position, such as the chief financial officer position which presents a lot more great opportunities for your career.

You can also work in the legal office. You can work as an auditor, a financial officer, a budget analyst, a management accountant, and even as a tax accountant. Most companies that are looking for tax accountants will prefer accountants with legal background.

Forensic accounting is another promising career for accountants. Here, you will investigate crimes, such as fraud in company's finances.

If you have a knack for teaching, you can teach a subject related to accountancy in college. This is a great career option and many accountants feel that this job is really fulfilling.

Just remember that in this profession, you have to start slow. If you are just beginning a career as an accountant, try to start as a trainee and work your way up to the career path that you want to take.

Accounting or accountancy career is a very promising career that presents a lot of great opportunities. You can be sure that you will find the right career that you want if you take this type of career.

How is accounting used in business?

2010-03-25T13:48:00.001-07:00

It might seem obvious, but in managing a business, it's important to understand how the business makes a profit. A company needs a good business model and a good profit model. A business sells products or services and earns a certain amount of margin on each unit sold. The number of units sold is the sales volume during the reporting period. The business subtracts the amount of fixed expenses for the period, which gives them the operating profit before interest and income tax.

It's important not to confuse profit with cash flow. Profit equals sales revenue minus expenses. A business manager shouldn't assume that sales revenue equals cash inflow and that expenses equal cash outflows. In recording sales revenue, cash or another asset is increased. The asset accounts receivable is increased in recording revenue for sales made on credit. Many expenses are recorded by decreasing an asset other than cash. For example, cost of goods sold is recorded with a decrease to the inventory asset and depreciation expense is recorded with a decrease to the book value of fixed assets. Also, some expenses are recorded with an increase in the accounts payable liability or an increase in the accrued expenses payable liability.

Remember that some budgeting is better than none. Budgeting provides important advantages, like understanding the profit dynamics and the financial structure of the business. It also helps for planning for changes in the upcoming reporting period. Budgeting forces a business manager to focus on the factors that need to be improved to increase profit. A well-designed management profit and loss report provides the essential framework for budgeting profit. It's always a good idea to look ahead to the coming year. If nothing else, at least plug the numbers in your profit report for sales volume, sales prices, product costs and other expense and see how your projected profit looks for the coming year.

What does an audit report contain?

2010-03-24T17:33:00.000-07:00

Most audit reports on financial statements give the business a clean bill of health, or a clean opinion. At the other end of the spectrum, the auditor may state that the financial statements are misleading and should not be relied upon. This negative audit report is called an adverse opinion. That's the big stick that auditors carry. They have the power to give a company's financial statements an adverse opinion and no business wants that. The threat of an adverse opinion almost always motivates a business to give way to the auditor and change its accounting or disclosure in order to avoid getting the kiss of death of an adverse opinion. An adverse audit opinion says that the financial statements of the business are misleading. The SEC does not tolerate adverse opinions by auditors of public businesses; it would suspend trading in a company's stock share if the company received an adverse opinion from its CPA auditor.

One modification to an auditor's report is very serious - when the CPA firm says that it has substantial doubts about the capability of the business to continue as a going concern. A going concern is a business that has sufficient financial wherewithal and momentum to continue it normal operations into the foreseeable future and would be able to absorb a bad turn of events without having to default on its liabilities. A going concern does not face an imminent financial crisis or any pressing financial emergency. A business could be under some financial distress but overall still be judged a going concern. Unless there is evidence to the contrary, the CPA auditor assumes that the business is a going concern. If an auditor has serious concerns about whether the business is a going concern, these doubts are spelled out in the auditor's report.

What does an audit do?

2010-03-23T16:48:00.000-07:00

If a business breaks the rules of accounting and ethics, it can be liable for legal sanctions against it. It can deliberately deceive its investors and lenders with false or misleading numbers in its financial report. That's where audits come in. Audits are one means of keeping misleading financial reporting to a minimum. CPA auditors are like highway patrol officers who enforce traffic laws and issue tickets to keep speeding to a minimum. An audit exam can uncover problems that the business was not aware of.

After completing an audit examination, the CPA prepares a short report stating that the business has prepared its financial statements, according to generally accepted accounting principles (GAAP), or where it has not. All businesses that are publicly traded are required to have annual audits by independent CPAs. Those companies whose stocks are listed on the New York Stock Exchange or Nasdaq must be audited by outside CPA firms. For a publicly traded company, the expense of conducting an annual audit is the cost of doing business; it's the price a company pays for going into public markets for its capital and for having its shares traded in the public venue.

Although federal law doesn't require audits for private businesses, banks and other lenders to private businesses may insist on audited financial statements. If the lenders don't require audited statements, a business's owners have to decide whether an audit is a good investment. Instead of an audit, which they can't really afford, many smaller businesses have an outside CPA come in on a regular basis to look over their accounting methods and give advice on their financial reporting. But unless a CPA has done an audit, he or she has to be very careful not to express an opinion of the external financial statements. Without a careful examination of the evidence supporting the amounts reported in the financial statements, the CPA is in no position to give an opinion on the financial statements prepared from the accounts of the business.

What is accounting fraud?

2010-03-22T20:20:00.000-07:00

Accounting fraud is a deliberate and improper manipulation of the recording of sales revenue and/or expenses in order to make a company's profit performance appear better than it actually is. Some things that companies do that can constitute fraud are:

--Not listing prepaid expenses or other incidental assets
--Not showing certain classifications of current assets and/or liabilities
--Collapsing short- and long-term debt into one amount.

Over-recording sales revenue is the most common technique of accounting fraud. A business may ship products to customers that they haven't ordered, knowing that those customers will return the products after the end of the year. Until the returns are made, the business records the shipments as if they were actual sales. Or a business may engage in channel stuffing. It delivers products to dealers or final customers that they really don't want, but business makes deals on the side that provide incentives and special privileges if the dealers or customers don't object to taking premature delivery of the products. A business may also delay recording products that have been returned by customers to avoid recognizing these offsets against sales revenue in the current year

The other way a business commits accounting fraud is by under-recording expenses, such as not recording depreciation expense. Or a business may choose not to record all of its cost of goods sold expense fore the sales made during a period. This would make the gross margin higher, but the business's inventory asset would include products that actually are not in inventory because they've been delivered to customers.

A business might also choose not to record asset losses that should be recognized, such as uncollectible accounts receivable, or it might not write down inventory under the lower of cost or market rule. A business might also not record the full amount of the liability for an expense, making that liability understated in the company's balance sheet. Its profit, therefore, would be overstated.

What are independent auditors?

2010-03-22T09:45:00.001-07:00

Indpendent CPA auditors are like referees in the financial reporting arena. The CPA comes in, does an audit of the business's accounting system and methods and gives a report that is attached to the company's financial statements. Publicly owned businesses are required to have their annual financial reports audited by independent CPA firms and any privately owned businesses have audits done as well because they know that an audit report will add credibility to their financial reports.

An auditor judges whether the business's accounting methods are in accordance with generally accepted accounting principles (GAAP). Generally everything is in place and the financial report is a reliable document. But at times an auditor will wave a yellow or red flag. Some indicators of potential trouble include when the business's capability to continue normal operations is in doubt because of what are known as financial exigencies, which could mean a low cash balance, unpaid overdue liabilities, or major lawsuits that the business doesn't have the cash to cover.

An auditor must exercise professional skepticism, meaning the auditor should challenge the accounting methods and reporting practices of the client in order to make sure that its financial statement conform with accounting standards and are not misleading - in short, that the financial statement are fairly presented. Indeed, the words "fairly presented" are the exact words used in the auditor's report.

A good auditor need technical know-how, but also needs to know how to be tough on the accounting methods of the client. His job is to be the agent of the shareholders and other users of the business's financial report. It's incumbent on an auditor to strictly uphold GAAP, and not let any irregularities slide.

There are a number of well-known companies that engaged in accounting fraud recently and that fraud was not discovered by the CPA auditors. Enron is one of these companies. In this case, the auditing firm, Arthur Anderson was found guilty of obstruction of justice because it destroyed audit evidence.

What is acid test ratio and ROA ratio?

2010-03-21T13:10:00.001-07:00

Investors calculate the acid test ratio, also known as the quick ratio or the pounce ratio. This ratio excludes inventory and prepaid expenses, which the current ratio includes, and it limits assets to cash and items that the business can quickly convert to cash. This limited category of assets is known as quick or liquid assets. The acid-text ratio is calculated by dividing the liquid assets by the total current liabilities.

This ratio is also known as the pounce ratio to emphasize that you're calculating for a worst-case scenario, where the business's creditors could pounce on the business and demand quick payment of the business's liabilities. Short term creditors do not have the right to demand immediate payment, except in unusual circumstances. This ratio is a conservative way to look at a business's capability to pay its short-term liabilities.

One factor that affects the bottom-line profitability of a business is whether it uses debt to its advantage. A business may realize a financial leverage gain, meaning it earns more profit on the money it has borrowed than the interest paid for the use of the borrowed money. A good part of a business's net income for the year may be due to financial leverage. The ROA ratio is determined by dividing the earnings before interest and income tax (EBIT) by the net operating assets.

An investor compares the ROA with the interest rate at which the corporation borrowed money. If a business's ROA is 14 percent and the interest rate on its debt is 8 percent, the business's net gain on its capital is 6 percent more than what it's paying in interest.

ROA is a useful ratio for interpreting profit performance, aside from determining financial gain or loss. ROA is called a capital utilization test that measures how profit before interest and income tax was earned on the total capital employed by the business.

What are other ratios used in financial reporting

2010-03-20T20:06:00.000-07:00

The dividend yield ratio tells investors how much cash income they're receiving on their stock investment in a business. This is calculated by dividing the annual cash dividend per share by the current market price of the stock. This can be compared with the interest rate on high-grade debt securities that pay interest, such as Treasure bonds and Treasury notes, which are the safest.

Book value per share is calculated by dividing total owners' equity by the total number of stock shares that are outstanding. While EPS is more important to determine the market value of a stock, book value per share is the measure of the recorded value of the company's assets less its liabilities, the net assets backing up the business's stock shares. It's possible that the market value of a stock could be less than the book value per share.

The return on equity (ROE) ratio tells how much profit a bus8iness earned in comparison to the book value of its stockholders' equity. This ratio is especially useful for privately owned businesses, which have no way of determining the current value of owners' equity. ROE is also calculated for public corporations, but it plays a secondary role to other ratios. ROE is calculated by dividing net income by owners' equity.

The current ratio is a measure of a business's short-term solvency, in other words, its ability to pay it liabilities that come due in the near future. This ratio is a rough indicator of whether cash on hand plus the cash to be collected from accounts receivable and from selling inventory will be enough to pay off the liabilities that will come due in the next period. It is calculated by dividing the current assets by the current liabilities. Businesses are expected to maintain a minimum 2:1 current ratio, which means its current assets should be twice its current liabilities.

What's the difference between private and public company reporting

2010-03-20T14:43:00.000-07:00

A public corporation is a business whose securities are traded on the public stock exchanges, such as the New York Stock Exchange and Nasdaq. A private company is held solely by its owners and is not traded publicly. When the shareholders of a private business receive the periodical financial reports, they are entitled to assume that the company's financial statements and footnotes are prepared in accordance with GAAP. Otherwise the president of chief officer of the business should clearly warn the shareholders that GAAP have not been followed in one or more respects. The content of a private business's annual financial report is often minimal. It includes the three primary financial statements - the balance sheet, income statement and statement of cash flows. There's generally no letter from the chief executive, no photographs, no charts.

In contrast, the annual report of a publicly traded company has more bells and whistles to it. There are also more requirements for reporting. These include the management discussion and analysis (MD&A) section that presents the top managers' interpretation and analysis of the business's profit performance and other important financial developments over the year.

Another section required for public companies is the earnings per share (EPS). This is the only ratio that a public business is required to report, although most public companies report a few others as well. A three-year comparative income statement is also required.

Many publicly owned businesses make their required filings with the SEC, but they present very different annual financial reports to their stockholders. A large number of public companies include only condensed financial information rather than comprehensive financial statements. They will generally refer the reader to a more detailed SEC financial report for more specifics.

42 What is price/earnings ratio

2010-03-19T22:41:00.001-07:00

The price/earning (P/E) ratio is another measurement that's of particular interest to investors in public businesses. The P/E ratio gives you an idea of how much you're paying in the current price for stock shares for each dollar of earning. Earnings prop up the market value of stock shares, not the book value of the stock shares that's reported in the balance sheet.

The P/E ratio is a reality check on just how high the current market price is in relation to the underlying profit that the business is earning. Extraordinarily high P/E ratios are justified only when investors think that the company's earnings per share (EPS) has a lot of upside potential in the future.

The P/E ratio is calculated dividing the current market price of the stock by the most recent trailing 12 months diluted EPS. Stock share prices bounce around day to day and are subject to big changes on short notice. The current P/E ratio should be compared with the average stock market P/E to gauge whether the business selling above or below the market average.

P/E ratios are currently running high, despite a four-year slump in the stock market. P/E ratios vary from industry to industry and from year to year. One dollar of EPS may command only a $10 market value for a mature business in a no-growth industry, while a dollar of EPS in a dynamic business in a growth industry may have a $30 market value per dollar of earnings, or net income.

To sum up, the price/earnings ratio, or P/E ratio is the current market price of a capital stock divided by its trailing 12 months' diluted earnings per share (EPS) or its basic earnings per share if the business does not report diluted EPS. A low P/E may signal an underbalued stock or a pessimistic forecast by investors. A high P/E may reveal an overvalued stock or might be based on an optimistic forecast by investors.

What is earnings per share

2010-03-18T19:56:00.001-07:00

Publicly owned companies must report earnings per share (EPS) below the net income line in their income statements. This is mandated by generally accepted accounting practices (GAAP). The EPS gives investors a means of determining the amount the business earned on its stock share investments. In other words, EPS tells investors how much net income the business earned for each stock share they own. It's calculated by dividing net income by the total number of capital stock share. It's important to the stockholders who want the net income of the business to be communicated to them on a per share basis so they can compare it with the market price of their shares.

Private businesses don't have to report EPS because stockholders focus more on the business's total net income.

Publicly-held companies actually report two EPS figures, unless they have what's known as a simple capital structure. Most publicly-held companies though, have complex capital structures and have to report two EPS figures. One is called the basic EPS; the other is called the diluted EPS. Basic EPS is based on the number of stock shares that are outstanding. Diluted earnings are based on shares that are outstanding and shares that may be issued in the future in the form of stock options.

Obviously this is a complicated process. An accountant has to adjust the EPS formula for any number of occurrences or changes in the business. A business might issue additional stock shares during the year and buy back some of its own shares. Or it might issue several classes of stock, which will cause net income to be divided into two or more pools - one pool for each class of stock. A merger, acquisition or divestiture will also impact the formula for EPS.

How to analyze a financial statement

2010-03-17T21:50:00.001-07:00

It's obvious financial statement have a lot of numbers in them and at first glance it can seem unwieldy to read and understand. One way to interpret a financial report is to compute ratios, which means, divide a particular number in the financial report by another. Financial statement ratios are also useful because they enable the reader to compare a business's current performance with its past performance or with another business's performance, regardless of whether sales revenue or net income was bigger or smaller for the other years or the other business. In order words, using ratios can cancel out difference in company sizes.

There aren't many ratios in financial reports. Publicly owned businesses are required to report just one ratio (earnings per share, or EPS) and privately-owned businesses generally don't report any ratios. Generally accepted accounting principles (GAAP) don't require that any ratios be reported, except EPS for publicly owned companies.

Ratios don't provide definitive answers, however. They're useful indicators, but aren't the only factor in gauging the profitability and effectiveness of a company.

One ratio that's a useful indicator of a company's profitability is the gross margin ratio. This is the gross margin divided by the sales revenue. Businesses don't discose margin information in their external financial reports. This information is considered to be proprietary in nature and is kept confidential to shield it from competitors.

The profit ratio is very important in analyzing the bottom-line of a company. It indicates how much net income was earned on each $100 of sales revenue. A profit ratio of 5 to 10 percent is common in most industries, although some highly price-competitive industries, such as retailers or grocery stores will show profit ratios of only 1 to 2 percent.

3 Smart Reasons Why You Should Consider Paying For Your Traffic

2010-03-15T17:11:00.000-07:00

There are numerous success stories you will hear about businesses making it good on the internet . The troubling thing is, there are maybe a tenfold or even a hundredfold of stories inconsistent to theirs. Many have unsuccessfully launched a business venture that is internet based but only a handful shall succeed.

Is this because of luck? That is even more remote. It takes good business sense and a lot of help and team effort. Most importantly, it is the eagerness to succeed and the persistence to learn and the willingness to put in a lot of hard work and some money.

However, before shelling out your hard-earned money on advertising, here are three (3) smart reasons why you should consider paying for your traffic including common-sense methods of showing you how to prepare your website.

1. The quickest method for getting customers to your website is to pay for your traffic.

Like Neo, traffic is 'The One' . Without traffic, all your efforts would just go to waste. Every business needs customers, without them you wouldn't have anyone to sell your products to. In the Internet world traffic is the walk in customer. The more traffic you possess the more people you'd be able to sell your products to.

But similar to any business that's in every corner building or in the mall, not everyone that goes in will buy. But for those who do come in to browse your merchandise, most of them will buy your products. It is a clear and known fact.

But, how do you get traffic, traffic great enough that could make a small portion of resulting buyers enough to make a fair profit. Many big companies generate traffic of tens of thousands a day and a measly ten to fifteen percent actually buys, but that small percentage is enough to supply them with adequate business.

Many of these success stories get their traffic from paying others. Yes that's right; you have to spend money to make money. Advertising is the key. The more people who know that your site exists the more people would of course go to your site, that's common sense.

While there are numerous ways to get free advertising for your business, free advertising doesn't generate the same high volume of traffic as paid traffic does. Paid advertisements include such advertising schemes as those offered by Google and Yahoo.

2. In order to take full advantage of the search engines, make sure that your site is properly optimized to rank high before paying for your traffic.

Search engines are the fastest and easiest way for finding what you need on the internet . Search engines are extremely popular because they provide an indispensable service to many people. They are free and easy to use. Because of their popularity, search engines receive many visitors as well as click throughs . With these benefits in mind, it is easy to see why so many companies would pay to advertise with search engines.

Search engines provide information to the millions of users they receive each day. They provide relevant links to many sites that a user may be looking for. If your site's link pops up as one of the top ranked sites on the search results page, you stand a great chance that the user will click your link and go to your site. While search engine optimization is a cheaper and low cost way to get your site a high rank, paying for advertisements will ensure that you will be on the top ranks.

When you pay for your advertisements, it is like paying for guaranteed traffic to your site. This may not seem like a good idea at first, but the benefits of doing so far outweigh the cost in the long run. When you pay for your traffic, you are guaranteed a consistent flow of traffic to your site. You will at no time go without making a sale on any given day.

3. Find and use tools that will aid you in researching relevant keywords for your chosen niche so that you don't waste money on advertising.

Normally, you will be charged with the number of hits a link gets when your ad is clicked, this is known as pay per click. For some search engines, you will be charged with the number of times your ad shows up when a certain keyword or keyword phrase is searched. It is imperative that you have good keyword content in your ad. There are many tools on the Internet which can aid you in using the right keywords at the right moment in time.

All the money you spend in paying for your traffic will not be for nothing. You will get an impressive boost in traffic which will also result in a great boost in your sales figures.

Keith Gloster has stumbled upon a proven system that solves four major problems 99.99% of marketers face everyday which are traffic generation, prospecting, lead generation and follow-up. For the exciting details, visit: http://www.free-mlm-leads-generator.com

Parts of an Income Statement, Part 3

2010-03-14T23:15:00.001-07:00

While some lines of an income statement depend on estimates or forecasts, the interest expense line is a basic equation. When accounting for income tax expense, however, a business can use different accounting methods for some of its expenses than it uses for calculating its taxable income. The hypothetical amount of taxable income, if the accounting methods used were used in the tax return is calculated. Then the income tax based on this hypothetical taxable income is fitured. This is the income tax expense reported in the income statement. This amount is reconciled with the actual amount of income tax owed based on the accounting methods used for income tax purposes. A reconciliation of the two different income tax amounts is then provided in a footnote on the income statement.

Net income is like earnings before interest and tax (EBIT) and can vary considerably depending on which accounting methods are used to report sales revenue and expenses. This is where profit smoothing can come into play to manipulate earnings. Profit smoothing crosses the line from choosing acceptable accounting methods from the list of GAAP and implementing these methods in a reasonable manner, into the gray area of earnings management that involves accounting manipulation.

It's incumbent on managers and business owners to be involved in the decisions about which accounting methods are used to measure profit and how those methods are actually implemented. A manager can be requires to answer questions about the company's financial reports on many occasions. It's therefore critical that any officer or manager in a company be thoroughly familiar with how the company's financial statements are prepared. Accounting methods and how they're implemented vary from business to business. A company's methods can fall anywhere on a continuum that's either left or right of center of GAAP.

Parts of an Income Statement, Part 2

2010-03-13T23:30:00.000-08:00

Of course profit and cost of goods sold expense are the two most critical components of an income statement, or at least they're what people will look at first. But an income statement is truly the sum of its parts, and they all need to be considered carefully, consistently and accurately.

In reporting depreciation expense, a business can use a short-life method and load most of the expense over the first few years, or a longer-life method and spread the expense evenly over the years. Depreciation is a big expense for some businesses and the method of reporting is especially critical for them.

One of the more complex elements of a an income statement is the line reporting employee pensions and post-retirement benefits. The GAAP rule on this expense is complex and several key estimates must be made by the business, such as the expected rate of return on the portfolio of funds set aside for these future obligations. This and other estimates affect the amount of expense recorded.

Many products are sold with expressed or implied warranties and guarantees. The business should estimate the cost of these future obligations and record this amount as an expense in the same period that the goods are sold, along with the cost of goods expense. It can't really wait until customers actually return products for repair or replacement, should be forecast as a percent of the total products sold.

Other operating expenses that are reported in an income statement may also have timing or estimating considerations. Some expenses are also discretionary in nature, which means that how much is spent during the year depends on the discretion of management.

Earnings before interest and tax (EBIT) measures the sales revenue less all the expenses above this line. It depends on all the decisions made for recording sales revenue and expenses and how the accounting methods are implemented.

Parts of an Income Statement, part 1

2010-03-13T16:23:00.001-08:00

The first and most important part of an income statement is the line reporting sales revenue. Businesses need to be consistent from year to year regarding when they record sales. For some business, the timing of recording sales revenue is a major problem, especially when the final acceptance by the customer depends on performance tests or other conditions that have to be satisfied. For example, when does an ad agency report the sales revenue for a campaign it's prepared for its client? When the work is completed and sent to the client for approval? When the client approves it? When the ads appear in the media? Or when the billing is complete? These are issues a company must decide on for reporting sales revenue, and they must be consistent each year, and the timing of reporting should be noted on the financial statement.

The next line in an income statement is the cost of goods sold expense. There are three methods of reporting cost of goods sold expense. One is called "first in-first out" (FIFO); another is the "last in-last out" (LIFO) method and the last is the average cost method. Cost of goods sold expense is a huge item in an income statement and how it's reported can make a substantial impact on the reported bottom line.

Other items in an income statement include inventory write-downs. A business should regularly inspect its inventory carefully to determine any losses due to theft, damage and deterioration, and to apply the lower of cost or market (LCM) method. Bad debts are also an important component of the income statement. Bad debts are those owed to a business by customers who bought on credit (accounts receivable) but are not going to be paid. Again the timing of when bad debts are reported is crucial. Do you report it before or after any collection efforts are exhausted?

Measuring Costs

2010-03-12T22:56:00.000-08:00

Measuring profits or net income is the most important thing accountants do. The second most important task is measuring costs. Costs are extremely important to running a business and managing them effectively can make a substantial difference in a company's bottom line.

Any business that sells products needs to know its product costs and depending on what is being manufactured and/or sold, it can get complicated. Every step in the production process has to be tracked carefully from start to finish. Many manufacturing costs cannot be directly matched with particular products; these are called indirect costs. To calculate the full cost of each product manufactured, accountants devise methods for allocating indirect production costs to specific products. Generally accepted accounting principles (GAAP) provide few guidelines for measuring product cost.

Accountants need to determine many other costs, in addition to product costs, such as the costs of the departments and other organizational units of the business; the cost of the retirement plan for the company's employees; the cost of marketing and advertising; the cost of restructuring the business or the cost of a major recall of products sold by the company, should that ever become necessary.

Cost accounting serves two broad purposes: measuring profit and furnishing relevant information to managers. What makes it confusing is that there's no one set method for measuring and reporting costs, although accuracy is paramount. Cost accounting can fall anywhere on a continuum between conservative or expansive. The phrase actual cost depends entirely on the particular methods used to measure cost. These can often be as subjective and nebulous as some systems for judging sports. Again accuracy is extremely important. The total cost of goods or products sold is the first and usually largest expense deducted from sales revenue in measuring profit.

Types of Costs

2010-03-12T21:42:00.000-08:00

Direct costs are those costs that cann be directly attributed to a product or product line, or to one source of sales revenue, or one business unit or operation of the business. An example of a direct cost would be the cost of tires on a new automobile.

Indirect costs are very different and can't be attached to any specific product, unit or activity. The cost of labor or benefits for an auto manufacturer is certainly a cost, but it can't be attached to any one vehicle. Each business has to devise a method of allocating indirect costs to different products, sources of sales revenue, business units, etc. Most allocation methods are less than perfect, and generally end up being arbitrary to one degree or another. Business managers and accounts should always keep an eye on the allocation methods used for indirect costs and take the cost figures produced by these methods with a grain of salt.

Fixed costs are those costs that stay the same over a relatively broad range of sales volume or production output. They're like an albatross around the neck of business and a company must sell its product at a high enough profit to at least break even.

Variable costs can increase and decrease in proportion to changes in sales or production level. Variable costs vary proportionately with changes in production/

Relevant costs are essentially future costs that could be incurred, depending on what strategic course a business takes. If an auto manufacturer decides to increase production, but the cost of tires goes up, than that cost needs to be taken into consideration.

Irrelevant costs are those that should be disregarded when deciding on a future course of action. They're costs that could cause you to make a wrong decision. Whereas relevant costs are future costs, irrelevant costs are those costs that were incurred in the past. The money's gone.

About GAAP

2010-03-11T20:20:00.001-08:00

While many businesses assume that accountants are bound by generally accepted accounting practices and that these are inviolate, nothing could be further from the truth. Everything is subject to interpretation, and GAAP is no different. For one thing, GAAP themselves permit alternative accounting methods to be used for certain expenses and for revenue in certain specialized types of businesses. For another, GAAP methods require that decisions be made about the timing for recording revenue and expenses, or they require that key factors be quantified. Deciding on the timing of revenue and expenses and putting definite values on these factors require judgments, estimates and interpretations.

The mission of GAAP over the years has been to standardize accounting methods in order to bring about uniformity across all businesses. But alternative methods are still permitted for certain basic business expenses. No tests are required to determine whether one method is more preferable than another. A business is free to select whichever method it wants. But it must choose which cost of good sold expense method to use and which depreciation expense method to use.

For other expenses and for sales revenue, one general accounting method has been established; there are no alternative methods. However, a business has a fair amount of latitude in actually implementing the methods. One business applies the accounting methods in a conservative manner, and another business applies the methods in a more liberal manner. The end result is more diversity between businesses in their profit measure and financial statements than one might expect, considering that GAAP have been evolving since 1930.

The pronouncement on GAAP prepared by the Financial Accounting Standards Board (FASB) is now more than 1000 pages long. And that doesn't even include the rules and regulations issued by the federal regulatory agency that jurisdiction over the financial reporting and accounting methods of publicly owned businesses - the Securities and Exchange Commission (SEC).

Budgeting

2010-03-11T14:23:00.000-08:00

Ugh, budgeting is one of those topics we'd rather avoid, but in business, it's an absolute necessity. To prepare a reasoned and thoughtful budget, an accountant must start with a broad-based critical analysis of the most recent actual performance and position of the business by the managers who are responsible for the results. Then the managers decide on specific and concrete goals for the coming year. It demands a fair amount of management time and energy. Budgets should be worth this time and effort. It's one of the key components of a manager's job.

To construct budged financial statements, a manager needs good models of the profit, cash flow and financial condition of your business. Models are blueprints or schematics of how things work. A business budget is, at its core, a financial blueprint of the business. Budgeting relies on financial models that are the foundation for preparing budgeted financial statements. Those statements include:

--Budgeted income statement (or profit report): This statement highlights the critical information that managers need for making decisions and exercising control. Much of the information in an internal profit report is confidential and should not be divulged outside the business.

--Budgeted balance sheet: The connections and ratios between sales revenue and expenses and their corresponding assets and liabilities are the elements of the basic model for the budgeted balance sheet.

--Budgeted statement of cash flows: The changes in assets and liabilities from their balances at the end of the year just concluded to the projected balances at the end of the coming year determine cash flow from profit for the coming year.

Budgeting requires good working models of profit performance, financial condition, and cash flow from profit. Constructing good budgets is a strong incentive for businesses to develop financial models that not only help in the budgeting process but also help managers in making strategic decisions.

What is a sole proprietorship?

2010-03-09T22:35:00.001-08:00

A sole proprietorship is the business or an individual who has decided not to carry his business as a separate legal entity, such as a corporation, partnership or limited liability company. This kind of business is not a separate entity. Any time a person regularly provides services for a fee, sells things at a flea market or engage in any business activity whose primary purpose is to make a profit, that person is a sole proprietor. If they carry on business activity to make profit or income, the IRS requires that you file a separate Schedule C "Profit or Loss From a Business" with your annual individual income tax return. Schedule C summarizes your income and expenses from your sole proprietorship business.

As the sold proprietor of a business, you have unlimited liability, meaning that if your business can't pay all it liabilities, the creditors to whom your business owes money can come after your personal assets. Many part-time entrepreneurs may not know this, but it's an enormous financial risk. If they are sued or can't pay their bills, they are personally liable for the business's liabilities.

A sole proprietorship has no other owners to prepare financial statements for, but the proprietor should still prepare these statements to know how his business is doing. Banks usually require financial statements from sole proprietors who apply for loans. A partnership needs to maintain a separate capital or ownership account for each partners. The total profit of the firm is allocated into these capital accounts, as spelled out in the partnership agreement. Although sole proprietors don't have separate invested capital from retained earnings like corporations do, they still need to keep these two separate accounts for owners' equity - not only to track the business, but for the benefit of any future buyers of the business.

What are partnerships and limited liability companies?

2010-03-09T18:37:00.000-08:00

Some business owners choose to create partnerships or limited liability companies instead of a corporation. A partnership can also be called a firm, and refers to an association of a group of individuals working together in a business or professional practice.

While corporations have rigid rules about how they are structured, partnerships and limited liability companies allow the division of management authority, profit sharing and ownership rights among the owners to be very flexible.

Partnerships fall into two categories. General partners are subject to unlimited liability. If a business can't pay its debts, its creditors can demand payment from the general partners' personal assets. General partners have the authority and responsibility to manage the business. They're analogous to the president and other officers of a corporation.

Limited partners escape the unlimited liability that the general partners have. They are not responsible as individuals, for the liabilities of the partnership. These are junior partners who have ownership rights to the profits of the business, but they don't generally participate in the high-level management of the business. A partnership must have one or more general partners.

A limited liability company (LLC) is becoming more prevalent among smaller businesses. An LLC is like a corporation regarding limited liability and it's like a partnership regarding the flexibility of dividing profit among the owners. Its advantage over other types of ownership is its flexibility in how profit and management authority are determined. This can have a downside. The owners must enter into very detailed agreements about how the profits and management responsibilities are divided. It can get very complicated and generally requires the services of a lawyer to draw up the agreement.

A partnership or LLC agreement specifies how profits will be divided among the owners. While stockholders of a corporation receive a share of profit that's directly related to how many shares they own, a partnership or LLC does not have to divide profit according to how much each partner invested. Invested capital is only of the factors that are used in allocating and distributing profits.

‘Greed Is Good’ – Remuneration, Motivation And Organisation

2010-03-08T15:55:00.000-08:00

The 1980's business culture in the USA and internationally put a considerable emphasis on personal reward on the basis that highly motivated individuals could transform organisations and societies. The extreme example in film was Gordon Gekko in Wall Street stating that greed was good. The 90's, however, have seen companies traumatised and bankrupted by the inappropriate use of remuneration as a motivator. Yet major corporate successes have been built on reward based remuneration systems. Phones4U recently and Allied Dunbar in the financial services market is an earlier example.

The notorious Barings Bank had individual traders on bonuses in the millions yet in the long term these motivated individuals were not fulfilling the company's objectives. Moreover even when an individual's reward system is based on entirely appropriate performance indicators, resulting in the organisation’s success and he or she is rewarded, there may still be problems arising from the large differential between salaries of senior people and those of middle management. A payment system that depresses or demotivates 10 people for every one it motivates may not be the best for the organisation.

Wise organisations are therefore trying to reward and motivate all staff so that staff act energetically to further the corporation’s interests both short and long term and feel they have been treated fairly. However there must be properly in place the link between the items on which they are being rewarded and the actions they are able to take to influence the desired outcome.

A wise organisation accepts that:

• It is reasonable for the individual manager to act in his or her own interests.
• Managers work for people not organisations and want to please the superiors closest to them, or failing that, their peer group.
• Managers want to achieve and will be attracted to those tasks at which they know they can succeed, usually favouring the short term at the expense of the long term.

The clear implication is that an organisation should lay some groundwork before relying on a remuneration structure to change performance and behaviour. In other words the management and organisation system must be in balance with the remuneration system.

There are 5 major pre-conditions to the installation of an effective reward structure.

1. Measurement: “If you don’t measure it you won’t get it”. There are various measurement systems of which Balanced Scorecard, which sets multiple objectives and is used by Tesco, is perhaps the best known.

2. Monitoring: If the performance measures are not monitored properly or only monitored in a review at the year end, it can give the manager signals that they don’t really matter or, worse still, that failure is acceptable providing all the managers fail together.

3. Control of the tools for the job: The organisation must ensure that the individual is not over dependent on factors outside his control to achieve the performance measures set out (this is the ‘how’ part of the equation).

4. Consistency: Ensuring that short term organisational factors don’t over-influence managers or drive them from their real objective. The organisation must also ensure that its own design (be it bureaucratic or loose) is appropriate to what is being asked of managers.

5. Reward and strategy in line: An organisation's achieving a clear strategy is not an event that will take place in the future; it is a journey. A remuneration system can be put into an organisation even when it has a relatively muddled strategy providing that organisational and management disputes are resolved by reference to strategy and the “balanced score card”. Only then will there be pressure on the organisation to refine its strategy, structure and remuneration systems.

Based on these 5 pre conditions, there is a checklist of 10 factors that the effective remuneration and reward structure must achieve:

1. Support the business strategy
2. Encourage the desired behaviour
3. Reward relevant performance
4. Be fair
5. Be substantial
6. Be tax efficient
7. Be timely (The reward must take place close to the achievement)
8. Incorporate non financial rewards (Recognition can be as important as cash)
9. Be firm (A bonus lost through missing target should not be recoverable whereas a salary increase should only be delayed until target is reached)
10. Be crystal clear

What is a corporation?

2010-03-07T20:59:00.000-08:00

Most businesses start out as a small company, owned by one person or by a partnership. The most common type of business when there are multiple owners is a corporation. The law sees a corporation as real, live person. Like an adult, a corporation is treated as a distinct and independent individual who has rights and responsibilities. A corporation's "birth certificate" is the legal form that is filed with the Secretary of State of the state in which the corporation is created, or incorporated. It must have a legal name, just like a person.

A corporation is separate from its owners. It's responsible for its own debts. The bank can't come after the stockholders if a corporation goes bankrupt.

A corporation issues ownership share to persons who invest money in the business. These ownership shares are documented by stock certificates, which state the name of the owner and how many shares are owned. the corporation has to keep a register, or list, of how many shares everyone owns. Owners of a corporation are called stockholders because they own shares of stock issued by the corporation. One share of stock is one unit of ownership; how much one share is worth depends on the total number of shares that the business issues. the more shares a business issues, the smaller the percentage of total owners' equity each share represents.

Stock shares come in different classes of stock. Preferred stockholders are promised a certain amount of cash dividends each year. Common stockholders have the most risk. If a corporation ends up in financial trouble, it's required to pay off its liabilities first. If any money is left over, then that money goes first to the preferred stockholders. If anything is left over after that, then that money is distributed to the common stockholders.

What is financial window dressing?

2010-03-03T21:19:00.001-08:00

Financial managers can do certain things to increase or decrease net income that's recorded in the year. This is called profit smoothing, income smoothing or just plain old window dressing. This isn't the same as fraud, or cooking the books.

Most profit smoothing involves pushing some amount of revenue and/or expenses into other years than they would normally be recorded. A common technique for profit smoothing is to delay normal maintenance and repairs. This is referred to as deferred maintenance. Many routine and recurring maintenance costs required for autos, trucks, machines, equipment and buildings can be delayed, or deferred until later.

A business that spends a significant amount of money for employee training and development may delay these programs until the next year so the expense in the current year is lower.

A company can cut back on its current year's outlays for market research and product development.

A business can ease up on its rules regarding when slow-paying customers are written off to expense as bad debts or uncollectible accounts receivable. The business can put off recording some of its bad debts expense until the next reporting year.

A fixed asset that is not being actively used may have very little current or future value to a business. Instead of writing off the un-depreciated cost of the impaired asset as a loss in the current year, the business might delay the write-off until the next year.

You can see how manipulating the timing of certain expenses can make an impact on net income. This isn't illegal although companies can go too far in massaging the numbers so that its financial statements are misleading. For the most part though, profit smoothing isn't much more than robbing Peter to pay Paul. Accountants refer to these as compensatory effects. The effects next year offset and cancel out the effects in the current year. Less expense this year is balanced by more expense the next year.

Disclosure

2010-03-01T21:10:00.000-08:00

Financial statements are the backbone of a complete financial report. In fact, a financial report is not complete if the three primary financial statements are not included. but a financial report is much more than just those statements. A financial report requires disclosures. This term refers to additional information provided in a financial report. Therefore, any comprehensive and ethical financial report must include not only the primary financial statements, but disclosures as well.

The chief executive of a business (usually the CEO in a publicly held corporation) has the primary responsibility to make sure that the financial statements have been prepared according to generally accepted accounting principles (GAAP) and the financial report provides adequate disclosures. He or she works with the chief financial officer or controller of the business to make sure that the financial report meets the standard of adequate disclosures.

Some common methods of disclosures include:

--Footnotes that provide information about the basic figures. Nearly all financial statements require footnotes to provide additional information for several of the account balances in the financial statements.

--Supplementary financial schedules and tables that provide more details than can be included in the body of the financial statements.

--Other information may be required if the business is a public corporation subject to federal regulations regarding financial reporting to its stockholders. Other information is voluntary and not strictly required legally or according to GAAP.

Some disclosures are required by various governing boards and agencies. These include:

--The financial Accounting Standards Board (FASB) has designated many standards. Its dictate regarding disclosure of the effects of stock options is one such standard.
--The Securities and Exchange Commission (SEC) mandates disclosure of a broad range of information for publicly held companies.
--International businesses have to abide by disclosure standards adopted by the International Accounting Standards Board.

What happened in corporate accounting scandals?

2010-03-01T19:02:00.001-08:00

When a corporation deliberately conceals or skews information to appear healthy and successful to its shareholders, it has committed corporate or shareholder fraud. Corporate fraud may involve a few individuals or many, depending on the extent to which employees are informed of their company's financial practices. Directors of corporations may fudge financial records or disguise inappropriate spending. Fraud committed by corporations can be devastating, not only for outside investors who have made share purchases based on false information, but for employees who, through 401ks, have invested their retirement savings in company stock.
Some recent corporate accounting scandals have consumed the news media and ruined hundreds of thousands of lives of the employees who had their retirement invested in the companies that defrauded them and other investors. The nuts and bolts of some of these accounting scandals are as follows:
WorldCom admitted to adjusting accounting records to cover its operation costs and present a successful front to shareholders. Nine billion dollars in discrepancies were discovered before the telecom corporation went bankrupt in July of 2002. One of the hidden expenses was $408 million given to Bernard Ebbers (WorldCom's CEO) in undisclosed personal loans.
At Tyco, shareholders were not informed of the $170 million in loans that were taken by Tyco's CEO, CFO, and chief legal officer. The loans, many of which were taken interest free and later written off as benefits, were not approved by Tyco's compensation committee. Kozlowski (former CEO), Swartz (former CFO), and Belnick (former chief legal officer) face continuing investigations by the SEC and the Tyco Corporation, which is now operating under Edward Breen and a new board of directors.
At Enron, investigations against uncovered multiple acts of fraudulent behavior. Enron used illegal loans and partnerships with other companies to cover its multi-billion dollar debt. It presented erroneous accounting records to investors, and Arthur Anderson, its accounting firm, began shredding incriminating documentation weeks before the SEC could begin investigations. Money laundering, wire fraud, mail fraud, and securities fraud are just some of the indictments directors of Enron have faced and will continue to face as the investigation continues.

What happened at Enron?

2010-02-27T12:04:00.001-08:00

Everyone knows at least a little about the Enron story and the devastation it created in the lives of is employees. It's a story that belongs in any discussion of ethical accounting processes and what happens when accounting standards and ethics are discarded for personal greed.
Enron began in 1985 selling natural gas to gas companies and businesses. In 1996, energy markets were changed so that the price of energy could now be decided by competition among energy companies instead of being fixed by government regulations. With this change, Enron began to function more as a middleman than a traditional energy supplier, trading in energy contracts instead of buying and selling natural gas. Enron's rapid growth created excitement among investors and drove the stock price up. As Enron grew, it expanded into other industries such as Internet services, and its financial contracts became more complicated.
In order to keep growing at this rate, Enron began to borrow money to invest in new projects. However, because this debt would make their earnings look less impressive, Enron began to create partnerships that would allow it to keep debt off of its books. One partnership created by Enron, Chewco Investments (named after the Star Wars character Chewbacca) allowed Enron to keep $600 million in debt off of the books it showed to the government and to people who own Enron stock. When this debt did not show up in Enron's reports, it made Enron seem much more successful than it actually was. In December 2000, Enron claimed to have tripled its profits in two years.
In August 2001, Enron vice president Sherron Watkins sent an anonymous letter to the CEO of Enron, Kenneth Lay, describing accounting methods that she felt could lead Enron to "implode in a wave of accounting scandals." Also in August, CEO Kenneth Lay sent e-mails to his employees saying that he expected Enron stock prices to go up. Meanwhile, he sold off his own stock in Enron.
On October 22nd, the Securities and Exchange Commission (SEC) announced that Enron was under investigation. On November 8th, Enron said that it has overstated earnings for the past four years by $586 million and that it owed over $6 billion in debt by next year.
With these announcements, Enron's stock price took a dive. This drop triggered certain agreements with investors that made it necessary for Enron to repay their money immediately. When Enron could not come up with the cash to repay its creditors, it declared for Chapter 11 bankruptcy.

What is the Sarbanes-Oxley Act?

2010-02-27T10:08:00.000-08:00

The Sarbanes-Oxley Act of 2002 is a United States federal law passed in response to the recent major corporate and accounting scandals including those at Enron, Tyco International, and WorldCom (now MCI). These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D-Md.) and Representative Michael G. Oxley (R-Oh.), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. The legislation is wide-ranging and establishes new or enhanced standards for all U.S. public company Boards, Management, and public accounting firms. The first and most important part of the Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, which is charged with overseeing and disciplining accounting firms in their roles as auditors of public companies. Some of the major provisions of the Sarbanes-Oxley Act's include:
--Certification of financial reports by chief executive officers and chief financial officers
--Auditor independence, including outright bans on certain types of work for audit clients and pre-certification by the company's Audit Committee of all other non-audit work
--A requirement that companies listed on stock exchanges have fully independent audit committees that oversee the relationship between the company and its auditor
--Significantly longer maximum jail sentences and larger fines for corporate executives who knowingly and willfully misstate financial statements, although maximum sentences are largely irrelevant because judges generally follow the Federal Sentencing Guidelines in setting actual sentences
--Employee protections allowing those corporate fraud whistleblowers who file complaints with OSHA within 90 days, to win reinstatement, back pay and benefits, compensatory damages, abatement orders, and reasonable attorney fees and costs.

Who uses forensic accountants?

2010-02-24T21:59:00.000-08:00

Forensic accounting financial investigative specialists work with financial information for the purpose of conveying complicated issues in a manner that others can easily understand. While some forensic accountants and forensic accounting specialists are engaged in the public practice of forensic examination, others work in private industry for such entities as banks and insurance companies or governmental entities such as sheriff and police departments, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service (IRS).
The occupational fraud committed by employees usually involves the theft of assets. Embezzlement has been the most often committed fraud for the last 30 years. Employees may be involved in kickback schemes, identity theft, or conversion of corporate assets for personal use. The forensic accountant couples observation of the suspected employees with physical examination of assets, invigilation, inspection of documents, and interviews of those involved. Experience on these types of engagements enables the forensic accountant to offer suggestions as to internal controls that owners could implement to reduce the likelihood of fraud.
At times, the forensic accountant may be hired by attorneys to investigate the financial trail of persons suspected of engaging in criminal activity. Information provided by the forensic accountant may be the most effective way of obtaining convictions. The forensic accountant may also be engaged by bankruptcy court when submitted financial information is suspect or if employees (including managers) are suspected of taking assets.
Opportunities for qualified forensic accounting professionals abound in private companies. CEOs must now certify that their financial statements are faithful representations of the financial position and results of operations of their companies and rely more heavily on internal controls to detect any misstatement that would otherwise be contained in these financials.
In addition to these activities, forensic accountants may be asked to determine the amount of the loss sustained by victims, testify in court as an expert witness and assist in the preparation of visual aids and written summaries for use in court.

How To Secure Your Wireless Network

2010-02-22T10:30:00.000-08:00

People have more flexible time due to wireless network. Thanks to the invention of wireless. People can now work from home while taking care of their kids or doing house works. No more stress from traffic jam anymore. Is this great?

Well, there is something you should realize. Working from home while using a wireless local area network (WLAN) may lead to theft of sensitive information and hacker or virus infiltration unless proper measures are taken. As WLANs send information over radio waves, someone with a receiver in your area could be picking up the transmission, thus gaining access to your computer. They could load viruses on to your laptop which could be transferred to the company's network when you go back to work.

Believe it or not! Up to 75 per cent of WLAN users do not have standard security features installed, while 20 per cent are left completely open as default configurations are not secured, but made for the users to have their network up and running ASAP. It is recommended that wireless router/access point setup be always done though a wired client.

You can setup your security by follow these steps:

1. Change default administrative password on wireless router/access point to a secured password.

2. Enable at least 128-bit WEP encryption on both card and access point. Change your WEP keys periodically. If equipment does not support at least 128-bit WEP encryption, consider replacing it. Although there are security issues with WEP, it represents minimum level of security, and it should be enabled.

3. Change the default SSID on your router/access point to a hard to guess name. Setup your computer device to connect to this SSID by default.

4. Setup router/access point not to broadcast the SSID. The same SSID needs to be setup on the client side manually. This feature may not be available on all equipment.

5. Block anonymous Internet requests or pings. On each computer having wireless network card, network connection properties should be configured to allow connection to Access Point Networks Only. Computer to Computer (peer to peer) Connection should not be allowed.

Enable MAC filtering. Deny association to wireless network for unspecified MAC addresses. Mac or Physical addresses are available through your computer device network connection setup and they are physically written on network cards. When adding new wireless cards / computer to the network, their MAC addresses should be registered with the router /access point. Network router should have firewall features enabled and demilitarized zone (DMZ) feature disabled.

All computers should have a properly configured personal firewall in addition to a hardware firewall. You should also update router/access point firmware when new versions become available. Locating router/access point away from strangers is also helpful so they cannot reset the router/access point to default settings. You can even try to locate router/access point in the middle of the building rather than near windows to limit signal coverage outside the building.

There is no guarantee of a full protection of your wireless network, but following these suggested tips can definitely lessen your risk of exposing to attackers aiming at insecure networks.

What is forensic accounting?

2010-02-20T21:28:00.001-08:00

Forensic accounting is the practice of utilizing accounting, auditing, and investigative skills to assist in legal matters. It encompasses 2 main areas - litigation support, investigation, and dispute resolution. Litigation support represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic accounting professional quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes, even before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.
Investigation is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred. As part of the forensic accountant's work, he or she may recommend actions that can be taken to minimize future risk of loss. Investigation may also occur in civil matters. For example, the forensic accountant may search for hidden assets in divorce cases.
Forensic accounting involves looking beyond the numbers and grasping the substance of situations. It's more than accounting...more than detective work...it's a combination that will be in demand for as long as human nature exists. Who wouldn't want a career that offers such stability, excitement, and financial rewards?
In short, forensic accounting requires the most important quality a person can possess: the ability to think. Far from being an ability that is specific to success in any particular field, developing the ability to think enhances a person's chances of success in life, thus increasing a person's worth in today's society. Why not consider becoming a forensic accountant on the Forensic Accounting Masters Degree link on the left-hand navigation bar.

What are auditors?

2010-02-19T23:06:00.000-08:00

Accountants and auditors help to ensure that the Nation's firms are run efficiently, its public records kept accurately, and its taxes paid properly and on time. They perform these vital functions by offering an increasingly wide array of business and accounting services, including public, management, and government accounting, as well as internal auditing, to their clients. Beyond carrying out the fundamental tasks of the occupation-preparing, analyzing, and verifying financial documents in order to provide information to clients-many accountants now are required to possess a wide range of knowledge and skills. Accountants and auditors are broadening the services they offer to include budget analysis, financial and investment planning, information technology consulting, and limited legal services.
Specific job duties vary widely among the four major fields of accounting: public, management, and government accounting and internal auditing.
Internal auditors verify the accuracy of their organization's internal records and check for mismanagement, waste, or fraud. Internal auditing is an increasingly important area of accounting and auditing. Internal auditors examine and evaluate their firms' financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are adequate to protect against fraud and waste. They also review company operations, evaluating their efficiency, effectiveness, and compliance with corporate policies and procedures, laws, and government regulations. There are many types of highly specialized auditors, such as electronic data-processing, environmental, engineering, legal, insurance premium, bank, and health care auditors. As computer systems make information timelier, internal auditors help managers to base their decisions on actual data, rather than personal observation. Internal auditors also may recommend controls for their organization's computer system, to ensure the reliability of the system and the integrity of the data.

Government accountants and auditors work in the public sector, maintaining and examining the records of government agencies and auditing private businesses and individuals whose activities are subject to government regulations or taxation. Accountants employed by Federal, State, and local governments guarantee that revenues are received and expenditures are made in accordance with laws and regulations. Those employed by the Federal Government may work as Internal Revenue Service agents or in financial management, financial institution examination, or budget analysis and administration.

What is the FASB?

2010-02-19T21:38:00.000-08:00

The FASB is one organization that provides standardized guidelines for financial reporting. The mission of the Financial Accounting Standards Board (FASB) is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors and users of financial information.
Accounting standards are essential to the efficient functioning of the economy because decisions about the allocation of resources rely heavily on credible, concise, transparent and understandable financial information. Financial information about the operations and financial position of individual entities also is used by the public in making various other kinds of decisions.

To accomplish its mission, the FASB acts to:

--Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability and on the qualities of comparability and consistency;
--Keep standards current to reflect changes in methods of doing business and changes in the economic environment;
--Consider promptly any significant areas of deficiency in financial reporting that might be improved through the standard-setting process;
--Promote the international convergence of accounting standards concurrent with improving the quality of financial reporting; and
--Improve the common understanding of the nature and purposes of information contained in financial reports.

The FASB develops broad accounting concepts as well as standards for financial reporting. It also provides guidance on implementation of standards. Concepts are useful in guiding the Board in establishing standards and in providing a frame of reference, or conceptual framework, for resolving accounting issues. The framework will help to establish reasonable bounds for judgment in preparing financial information and to increase understanding of, and confidence in, financial information on the part of users of financial reports. It also will help the public to understand the nature and limitations of information supplied by financial reporting.

Network Monitoring for Serious eCommerce

2010-02-19T10:01:00.000-08:00

In the real world, businesses come in every size, from self-employed entrepreneurs like me to mega malls like Wal-Mart.

On the Internet, companies come in every size, too, from a stand-alone ebook sales page with webmaster and owner all in one, to 300 pound gorilla like Amazon, with over a million pages, who requires the entire population of a small country to serve as webmaster.

If your site is a single page, it is its own network. But if your site is any bigger, and you have plans to grow, it is a network or is fast becoming one. You need network monitoring.

Most ecommerce webmasters are at least somewhat familiar with website monitoring. Many use a website monitoring service or software to keep track of "uptime" and "downtime".

At your local shopping mall, serious business requires more than just knowing when the front doors are open and when they are closed. Serious ecommerce needs to know more than just when the site is accessible. That is what network monitoring is all about.

What Network Monitoring Monitors

Chances are, your e-business owns one of the following, or uses one of the following remotely:

DNS servers: These are used to translate your site name, like www.URL.com, to the numbers called "IP addresses" that computers understand. If DNS servers are not working properly, end-users will not be able to find your site and will get an error. Usually only an external or remote monitoring service will detect such a problem.

An FTP server: File Transfer Protocol servers are used to help you
exchange files with remote users. If you use FTP, a monitoring
service can make sure it is always up and running.

POP3 and SMTP servers: These are used for exchanging emails. If you are using email, chances are you are using SMTP and POP3. If your SMTP server is down, everyone who sends you email will receive an error, stating that your mail server is down and cannot accept incoming email. To say that the impression this leaves your customers is bad would be an understatement. If your POP3 server is down, you will be unable to retrieve email from your mailbox. Once again, only external monitoring will prevent such a problem.

Firewalls: Many businesses use firewalls to protect their internal network from un-authorized traffic, such as spyware, viruses and sabotage by competitors. Furthermore, a firewall is your first line of defense. If your firewall goes down, your whole network may actually become inaccessible from outside. In other words, if you host your own web site and mail servers, those will become
inaccessible to the outside world if your firewall goes down. Once again, remote network monitoring is required to detect that a problem exists and quickly get it repaired.

Internet connections: Users come to your network from multiple backbones, depending on the company they use to connect to the Internet and their location. It is important to insure that your connection performs well for each user. A remote monitoring service can ping your networks from multiple locations around the world, thus testing most major routes to your web server or network. Before hiring a network monitoring service, check to see that they have both your customer geography and the Internet backbone layout covered.

Very few websites of any size and functionality are anything less than a complete network, and many networks rely on servers in different parts of the world.

A good network monitoring service can ensure, as a base, that all servers are properly functioning, that data can be sent to and received from each server, and that each function sharing the server responds as required. An advanced network monitoring service can even remotely monitor the temperature of your servers.

What you need to monitor depends on how extensive your network is. A network monitoring expert can help you determine what needs monitoring. If you own the servers, or are remotely hosted on dedicated servers, you most likely need everything monitored. If your site is hosted on shared servers, you might need fewer functions monitored.

Managing the Bottom Line

2010-02-17T19:24:00.000-08:00

If you don't keep track of how much money you're making, you have no idea whether your business is successful or not. You can't tell how well your marketing is working. And I don't just mean you should know the amount of your total sales or gross revenue. You need to know what your net profit is. If you don't, there's no way you can know how to increase it.

If you want your business to be successful, you need to make a financial plan and check it against the facts on a monthly basis, then take immediate action to correct any problems. Here are the steps you should take:

* Create a financial plan for your business. Estimate how much revenue you expect to bring in each month, and project what your expenses will be.
* Remember that lost profits can't be recovered. When entrepreneurs compare their projections to reality and find earnings too low or expenses too high, they often conclude, "I'll make it up later." The problem is that you really can't make it up later: every month profits are too low is a month that is gone forever.
* Make adjustments right away. If revenues are lower than expected, increase efforts in sales and marketing or look for ways to increase your rates. If overhead costs are too high, find ways to cut back. There are other businesses like yours around. What is their secret for operating profitably?
* Think before you spend. When considering any new business expense, including marketing and sales activities, evaluate the increased earnings you expect to bring in against its cost before you proceed to make a purchase.
* Evaluate the success of your business based on profit, not revenue. It doesn't matter how many thousands of dollars you are bringing in each month if your expenses are almost as high, or higher. Many high-revenue businesses have gone under for this very reason -- don't be one of them.

Quasar software

2010-02-16T21:37:00.000-08:00

Accounting has become more and more complex as have the businesses that use accounting functions. Fortunately, there are several excellent software packages that can help you manage this important function. Quasar is one such package.

All versions of Quasar offer comprehensive inventory controls. In its most basic use, the inventory module allows a business owner to track the locations and quantities of all inventory items. Additionally, the inventory capabilities go beyond simple record-keeping. Manufacturers and wholesalers can assemble kits using component items; whenever a kit is assembled, the inventory representing its component items are adjusted accordingly. Items can be grouped into various categories and the groups can be nested many levels deep. Vendor purchase orders can be generated for items whose quantities are below a preset level. Costs and selling prices for items can be set and discounted in a myriad of different ways. Finally, these items can be reported upon to show such things as profits, margins, and sales per item.

Sales and purchasing are another strength of Quasar. Customer quotes can be easily converted to invoices to be paid. Promotions can be created and discounts can be given based on date, customer, or store location. Margins can be reported upon for traits such as individual items, individual customers, or individual salesperson. Likewise, a purchase order can be created and converted to a vendor invoice, which can be paid in a number of different ways, including printing a check. Quasar can keep track of miscellaneous fees such as container deposits, freight charges, and franchise fees.

The intelligent design of Quasar's user interface allows for quick and easy data entry. Some programs you may encounter are not optimized for keyboard use. These programs require you to move your hand to the mouse to select frequently needed options. While some of Quasar's menu options are only mouse-accessible, the bulk of Quasar's user interface is designed in such a way that you can keep you hands on the keyboard by using special shortcuts. This allows for faster data entry, which can save time (and therefore money) in the long run.

Building Cash Reserves

2010-02-15T20:00:00.001-08:00

Building a financial cushion for your business is never easy. Experts say that businesses should have anywhere from six to nine months worth of income safely stored away in the bank. If you're a business grossing $250,000 per month, the mere thought of saving over $1.5 million dollars in a savings account will either have you collapsing from fits of laughter or from the paralyzing panic that has just set in. What may be a nice well-advised idea in theory can easily be tossed right out the window when you're just barely making payroll each month. So how is a small business owner to even begin a prudent savings program for long-term success?

Realizing that your business needs a savings plan is the first step toward better management. The reasons for growing a financial nest egg are strong. Building savings allows you to plan for future growth in your business and have ready the investment capital necessary to launch those plans. Having a source of back-up income can often carry a business through a rough time.
When market fluctuations, such as the dramatic increase in gasoline and oil prices, start to affect your business, you may need to dip into your savings to keep operations running smoothly until the difficulties pass. Savings can also support seasonal businesses with the ability to purchase inventory and cover payroll until the flush of new cash arrives. Try to remember that you didn't build your business overnight and you cannot build a savings account instantly either.

Review your books monthly and see where you can trim expenses and reroute the savings to a separate account. This will also help to keep you on track with cash flow and other financial issues. While it can be quite alarming to see your cash flowing outward with seemingly no end in sight, it's better to see it happening and put corrective measures into place, rather than discovering your losses five or six months too late.

Does The Google Desktop Really Put Your Privacy In Jeopardy?

2010-02-14T16:58:00.000-08:00

There has been a lot of talk recently about Google Talk and how there are serious privacy concerns with the new application.

The biggest concern seems to come with the ability to search and share multiple computers with one account. In other words, you could use a single desktop search account to search, index and allow you to share files between your desktop and laptop for example.

But are these concerns grounded in truth? Is there really a privacy issue here?

I downloaded and installed the new Desktop Search beta the other day. It has some interesting new features such as the ability to remove panels from the sidebar and dock them anywhere you like on your desktop.

And there are several more panels available to let you do anything from manage what is indexed, to passing time by playing games.

One of the coolest features is its ability to reach beyond the desktop it is on to do a variety of things. Now, I can play tic tac toe with co-workers, or even friends around the world.

But the biggest, and most troubling update to some is the ability to remotely index files, as well as share them using Google servers to temporarily store the items.

By turning this feature on you give Google the right to store your files for up to 30 days. Therein lies the crux of the issue – there seems to be no way around this 30 day requirement.

All I have to say is 'so what?'

So what if you have to give Google this ability? Google will encrypt the data so that no one else can access it. And even if there is some sort of DOJ subpoena requiring access to these files I don't think it would stand up in court.

This is because Google has set up a network whereby all your Google activities are tied to one Google account. Your personalized home page, gmail, google analytics, adwords and adsense accounts all share the same Google account. Therefore, it would be difficult for anyone to get a subpoena to review information pertaining to only part of that account.

Legalities aside, if you are that concerned about the privacy being surrendered to Google in order to use this system then don't sign up for it.

You can still download and use the new Desktop Search with most of its new features, but you don't have to use the file sharing.

But what if you want to share files between computers?

Well, do what I did – go to your favorite electronics store and buy a flash drive. I just bought a USB flash drive with over 2 gigs of storage for under $100. Now I can easily transfer anything between any computer with no worry of some government agency wanting to know what's on it.

As I said, I do have the new Google Desktop installed, and I did look at the settings for the search and file sharing, but I didn't turn them on. I have no need to be able to search my home computer from work and vice versa, nor do I need to share files between the two computers.

And if I did, I'll simply use the FTP site I have set up on a computer at home or the aforementioned flash drive.

Really, when it comes to all the other ways that Google captures your personal data, from search history to Gmail, should we be all that concerned that some files may end up being stored on a Google server somewhere?

I think we should have other concerns. For example, I think we should be concerned about what Google already knows about us via those services I mentioned earlier.

I think business owners should be concerned that such a service would allow employees to easily steal and transfer data to and from work.

I think if you are that scared of the US government infringing on your privacy then you shouldn't have a Google account, nor Google Desktop Search nor a Gmail account. In fact I don't think you should have any Internet accounts because quite honestly everyone is a target for the DOJ. Further, I can almost guarantee you that your local ISP will fold and hand over the data much easier than Google will.

So before you start complaining about how Google could infringe your privacy, remember that YOU have the ability to stop it from happening. It's just a matter of choosing to do so.

Cabling your home for computer network - still a requirement?

2010-02-14T15:53:00.001-08:00

Cabling your home for computer network - still a requirement?

With proliferation of wireless networking and communication equipment it is oh-so-tempting to cut the cord and save a significant sum of money in the process. But is everything that a regular computer networking user needs can be done using just wireless network? Let’s take a look at some pros and contras:

1. One important advantage of having a cabled network is the available bandwidth or simply speed. At the present point in time the speed of connection via a simple and inexpensive CAT5E cable can be 1000Mbit/sec, whereas the best that IEEE802.11g (one of the many flavors of Wi-Fi) can offer is only 54Mbit/sec. It may not seem so significant if you think you are only browsing Internet, and the DSL speed available to you is 1.5Mbit/sec. However, if you need to print via your network connection on a remote printer, you should realize that the print jobs, depending on the amount of graphic data in them, can easily reach dozens and even hundreds megabytes. Since 1Byte=8bit one 100MByte print job will take 15 seconds (and in reality this time can be much longer) to transmit via a Wi-Fi wireless connection, and this time shrinks to mere 1 sec or less on wired 1000MBit/s Ethernet connection. Same principal applies to transferring files, backing up files on other computers in the network etc.
2. It is not possible today and with all probability will not be possible in the future to transmit power needed for your networking device via the wireless link. Unless, of course, you would be willing to be subjected to very high levels of microwave radiation. Thus a device that was marketed to you as “un-tethered” will in fact be very much tethered via the power cord or will have to be re-charged every so often. The power requirements are increasingly important for devices that are expected to be always online, such as phone sets. Therefore it is best to have it connected via a cable that can deliver both power and the communication signal at the same time.
3. Wireless communications are very much proprietary and require whole gamut of conversion equipment to transmit multi-media signals. The same CAT5E cable can without any modification support phone, computer network, balanced line level audio signal, baseband video signal as well as host of other, more specialized, control applications’ signals. With inexpensive adapters called “baluns” the same cable can carry significant number of channels of broadband television or carry a baseband video, such as security camera output, through great distances. All of those applications, except the computer network of course, will require specialized expensive conversion equipment if they needed to be transmitted via a Wi-Fi link.
4. The cost benefit of not running wires around the house is not as simple as issue as it seems. Having installed a wireless network at home you have only eliminated the need to wire for a single application – computer network. A modern home, however, requires all kinds of wiring to run even without regard to computers. The power and phones are obvious examples, as well as thermostats and security systems. Pre-wired speakers are common and most homes today have intercom systems as a desirable option, and those also require extensive wiring. It is very likely that the same contractor running the intercom or security cables is qualified to run computer cables – CAT5E or better. If you are building a home, you should definitely check if computer cabling option is available in your new home, and our advice is to go ahead and purchase it before the walls close. It is going to be a pretty involved and expensive procedure to install the cables later. As an added cost benefit of a wired computer network you will find that all modern computers ship with wired Ethernet network interface card included, and the latest models ship with 1000MBit/sec cards that are essentially free for the computer’s owner.

There are multiple sources of information available on proper planning and design of a residential cabling for voice, data, audio, video and other applications. One of the best sources is the TIA/EIA-570B standard, most resent release of which has been published in 2004. The standard outlines recommended types of the cables, principals of cable distribution in a single- and multi-dwelling units as well as recommended amount of cables to be installed based on the size of the house.

In conclusion, cutting the wire seems like a step forward, some sort of liberation of computer from the bonds of the infrastructure. I would caution the reader, however, to take a more balanced and informed approach before joining the wireless revolution. There are still (and will remain in foreseen future) sound reasons to include properly designed cabling system into the list of your dream home options.

An Overview of Mobile Wireless Computing

2010-02-14T14:53:00.000-08:00

Being able to work while traveling is essential for every professional these days. That’s why laptops have become an essential item. Using the internet on a laptop is also important if one needs to keep in touch with work. Getting wireless internet for your laptop is therefore essential if you are a traveling professional. It is important that if you do so, get a wireless internet capability for your laptop, to get the best possible deal out there and maximize the potential of your computer. Due to the mobility of the laptop, computer users need not to be limited by wires when travelling so wireless internet is very handy. Wireless internet these days is becoming better and faster and almost a necessity for every laptop.

Having wireless internet on your laptop allows the user to conduct their business in a timely and easy manner. Having a wifi internet connection on the laptop for example, makes conducting business much easier. It is becoming increasingly popular as well. Being able to connect to the internet while traveling allows the user to check emails constantly and therefore keep contacts, to have access to information like checking figures, and enhance their productivity. To be able to connect to the internet using a laptop, the computer must have the wireless capability to connect to a router. It is imperative that the laptop must have the right network card with a WiFi connector. There are many public spaces that allow for WiFi connections in every western city. The quality of the connection differs from place to place since it depends on a variety of factors. In general, the quality of the connection depends on the quality of the wireless signal that your laptop receives. Being closer or further from the source of the signal in the end will determine the strength and therefore the quality and possibly the speed of your connection. A WiFi network allows for constant connectivity in all hours of the day and every day of the week.

Currently, computer and consequently laptop manufactures are investing time and money in enhancing their products networking capabilities and speeds. In the past few years, wireless connectivity has come a long way in terms of quality and strength. When the portable computers were introduced a few years back the notion of the mobile network already existed. Nevertheless, it was not perfected and had many flaws. Over the years however, wireless capabilities have expanded, they have been bettered allowing for greater connectivity, stronger networks, and higher productivity. As a result, and due to the constant technological advancements, laptop users these days can buy the computer and never have to worry about finding a modem, or a router or those inconvenient cables. Just turn on the computer and start surfing the web. Due to the increasing popularity o wireless internet public spaces have been accommodating for this new trend. Public libraries, airports, or even specific businesses provide wireless internet for their customers. In many city centres in North America, there are so many wireless networks functioning at the same place that it is virtually impossible not to find an internet connection to log on to. The only down side to wireless computing is that it might be associated with health risks that we are not yet aware of. Overall, however wireless computing is the way to go for the business professional, the student or every other avid computer user.

Investing and financing

2010-02-13T14:29:00.000-08:00

Another portion of the statement of cash flows reports the investment that the company took during the reporting year. New investments are signs of growing or upgrading the production and distribution facilities and capacity of the business. Disposing of long-term assets or divesting itself of a major part of its business can be good or bad news, depending on what's driving those activities. A business generally disposes of some of its fixed assets every year because they reached the end of their useful lives and will not be used any longer. These fixed assets are disposed of or sold or traded in on new fixed assets. The value of a fixed asset at the end of its useful life is called its salvage value. The proceeds from selling fixed assets are reported as a source of cash in the investing activities section of the statement of cash flows. Usually these are very small amounts.

Like individuals, companies at times have to finance its acquisitions when its internal cash flow isn't enough to finance business growth. financing refers to a business raising capital from debt and quity sources, by borrowing money from banks and other sources willing to loan money to the business and by its owners putting additional money in the business. The term also includes the other side, making payments on debt and returning capital to owners. it includes cash distributions by the business from profit to its owners.

Most business borrow money for both short terms and long terms. Most cash flow statements report only the net increase or decrease in short-term debt, not the total amounts borrowed and total payments on the debt. When reporting long-term debt, however, both the total amounts and the repayments on long-term debt during a year are generally reported in the statement of cash flows. These are reported as gross figures, rather than net.

Depreciation reporting

2010-02-11T19:41:00.000-08:00

In an accountant's reporting systems, depreciation of a business's fixed assets such as its buildings, equipment, computers, etc. is not recorded as a cash outlay. When an accountant measures profit on the accrual basis of accounting, he or she counts depreciation as an expense. Buildings, machinery, tools, vehicles and furniture all have a limited useful life. All fixed assets, except for actual land, have a limited lifetime of usefulness to a business. Depreciation is the method of accounting that allocates the total cost of fixed assets to each year of their use in helping the business generate revenue.

Part of the total sales revenue of a business includes recover of cost invested in its fixed assets. In a real sense a business sells some of its fixed assets in the sales prices that it charges it customers. For example, when you go to a grocery store, a small portion of the price you pay for eggs or bread goes toward the cost of the buildings, the machinery, bread ovens, etc. Each reporting period, a business recoups part of the cost invested in its fixed assets.

It's not enough for the accountant to add back depreciation for the year to bottom-line profit. The changes in other assets, as well as the changes in liabilities, also affect cash flow from profit. The competent accountant will factor in all the changes that determine cash flow from profit. Depreciation is only one of many adjustments to the net income of a business to determine cash flow from operating activities. Amortization of intangible assets is another expense that is recorded against a business's assets for year. It's different in that it doesn't require cash outlay in the year being charged with the expense. That occurred when the business invested in those tangible assets.

Depreciation

2010-02-11T18:05:00.000-08:00

Depreciation is a term we hear about frequently, but don't really understand. It's an essential component of accounting however. Depreciation is an expense that's recorded at the same time and in the same period as other accounts. Long-term operating assets that are not held for sale in the course of business are called fixed assets. Fixed assets include buildings, machinery, office equipment, vehicles, computers and other equipment. It can also include items such as shelves and cabinets. Depreciation refers to spreading out the cost of a fixed asset over the years of its useful life to a business, instead of charging the entire cost to expense in the year the asset was purchased. That way, each year that the equipment or asset is used bears a share of the total cost. As an example, cars and trucks are typically depreciated over five years. The idea is to charge a fraction of the total cost to depreciation expense during each of the five years, rather than just the first year.

Depreciation applies only to fixed assets that you actually buy, not those you rent or lease. Depreciation is a real expense, but not necessarily a cash outlay expense in the year it's recorded. The cash outlay does actually occur when the fixed asset is acquired, but is recorded over a period of time.

Depreciation is different from other expenses. It is deducted from sales revenue to determine profit, but the depreciation expense recorded in a reporting period doesn't require any true cash outlay during that period. Depreciation expense is that portion of the total cost of a business's fixed assets that is allocated to the period to record the cost of using the assets during period. The higher the total cost of a business's fixed assets, then the higher its depreciation expense.

Inventory and expenses

2010-02-11T13:00:00.000-08:00

Inventory is usually the largest current asset of a business that sells products. If the inventory account is greater at the end of the period than at the start of the reporting period, the amount the business actually paid in cash for that inventory is more than what the business recorded as its cost of good sold expense. When that occurs, the accountant deducts the inventory increase from net income for determining cash flow from profit.

the prepaid expenses asset account works in much the same way as the change in inventory and accounts receivable accounts. However, changes in prepaid expenses are usually much smaller than changes in those other two asset accounts.

The beginning balance of prepaid expenses is charged to expense in the current year, but the cash was actually paid out last year. this period, the business pays cash for next period's prepaid expenses, which affects this period's cash flow, but doesn't affect net income until the next period. Simple, right?

As a business grows, it needs to increase its prepaid expenses for such things as fire insurance premiums, which have to be paid in advance of the insurance coverage, and its stocks of office supplies. Increases in accounts receivable, inventory and prepaid expenses are the cash flow price a business has to pay for growth. Rarely do you find a business that can increase its sales revenue without increasing these assets.

The lagging behind effect of cash flow is the price of business growth. Managers and investors need to understand that increasing sales without increasing accounts receivable isn't a realistic scenario for growth. In the real business world, you generally can't enjoy growth in revenue without incurring additional expenses.

Revenue and receivables

2010-02-10T20:44:00.000-08:00

In most businesses, what drives the balance sheet are sales and expenses. In other words, they cause the assets and liabilities in a business. One of the more complicated accounting items are the accounts receivable. As a hypothetical situation, imagine a business that offers all its customers a 30-day credit period, which is fairly common in transactions between businesses, (not transactions between a business and individual consumers).

An accounts receivable asset shows how much money customers who bought products on credit still owe the business. It's a promise of case that the business will receive. Basically, accounts receivable is the amount of uncollected sales revenue at the end of the accounting period. Cash does not increase until the business actually collects this money from its business customers. However, the amount of money in accounts receivable is included in the total sales revenue for that same period. The business did make the sales, even if it hasn't acquired all the money from the sales yet. Sales revenue, then isn't equal to the amount of cash that the business accumulated.

To get actual cash flow, the accountant must subtract the amount of credit sales not collected from the sales revenue in cash. Then add in the amount of cash that was collected for the credit sales that were made in the preceding reporting period. If the amount of credit sales a business made during the reporting period is greater than what was collected from customers, then the accounts receivable account increased over the period and the business has to subtract from net income that difference.

If the amount they collected during the reporting period is greater than the credit sales made, then the accounts receivable decreased over the reporting period, and the accountant needs to add to net income that difference between the receivables at the beginning of the reporting period and the receivables at the end of the same period.

Balance sheet

2010-02-09T21:58:00.000-08:00

A balance sheet is a quick picture of the financial condition of a business at a specific period in time. The activities of a business fall into two separate groups that are reported by an accountant. They are profit-making activities, which includes sales and expenses. This can also be referred to as operating activities. There are also financing and investing activities that include securing money from debt and equity sources of capital, returning capital to these sources, making distributions from profit to the owners, making investments in assets and eventually disposing of the assets.

Profit making activities are reported in the income statement; financing and investing activities are found in the statement of cash flows. In other words, two different financial statements are prepared for the two different types of transactions. The statement of cash flows also reports the cash increase or decrease from profit during the year as opposed to the amount of profit that is reported in the income statement.

The balance sheet is different from the income and cash flow statements which report, as it says, income of cash and outgoing cash. The balance sheet represents the balances, or amounts, or a company's assets, liabilities and owners' equity at an instant in time. The word balance has different meanings at different times. As it's used in the term balance sheet, it refers to the balance of the two opposite sides of a business, total assets on one side and total liabilities on the other. However, the balance of an account, such as the asset, liability, revenue and expense accounts, refers to the amount in the account after recording increases and decreases in the account, just like the balance in your checking account. Accountants can prepare a balance sheet any time that a manager requests it. But they're generally prepared at the end of each month, quarter and year. It's always prepared at the close of business on the last day of the profit period.

Gains and Losses

2010-02-09T20:41:00.001-08:00

It would probably be ideal if business and life were as simple as producing goods, selling them and recording the profits. But there are often circumstances that disrupt the cycle, and it's part of the accountants job to report these as well. Changes in the business climate, or cost of goods or any number of things can lead to exceptional or extraordinary gains and losses in a business. Some things that can alter the income statement can include downsizing or restructuring the business. This used to be a rare thing in the business environment, but is now fairly commonplace. Usually it's done to offset losses in other areas and to decrease the cost of employees' salaries and benefits. However, there are costs involved with this as well, such as severance pay, outplacement services, and retirement costs.

In other circumstances, a business might decide to discontinue certain product lines. Western Union, for example, recently delivered its very last telegram. The nature of communication has changed so drastically, with email, cell phones and other forms, that telegrams have been rendered obsolete. When you no longer sell enough of a product at a high enough profit to make the costs of manufacturing it worthwhile, then it's time to change your product mix.

Lawsuits and other legal actions can cause extraordinary losses or gains as well. If you win damages in a lawsuit against others, then you've incurred an extraordinary gain. Likewise if your own legal fees and damages or fines are excessive, then these can significantly impact the income statement.

Occasionally a business will change accounting methods or need to correct any errors that had been made in previous financial reports. Generally Accepted Accounting Procedures (GAAP) require that businesses make any one-time losses or gains very visible in their income statement.

Assets and Liabilities

2010-02-09T17:51:00.000-08:00

Making a profit in a business is derived from several different areas. It can get a little complicated because just as in our personal lives, business is run on credit as well. Many businesses sell their products to their customers on credit. Accountants use an asset account called accounts receivable to record the total amount owed to the business by its customers who haven't paid the balance in full yet. Much of the time, a business hasn't collected its receivables in full by the end of the fiscal year, especially for such credit sales that could be transacted near the end of the accounting period.

The accountant records the sales revenue and the cost of goods sold for these sales in the year in which the sales were made and the products delivered to the customer. This is called accrual based accounting, which records revenue when sales are made and records expenses when they're incurred as well. When sales are made on credit, the accounts receivable asset account is increased. When cash is received from the customer, then the cash account is increased and the accounts receivable account is decreased.

The cost of goods sold is one of the major expenses of businesses that sell goods, products or services. Even a service involves expenses. It means exactly what it says in that it's the cost that a business pays for the products it sells to customers. A business makes its profit by selling its products at prices high enough to cover the cost of producing them, the costs of running the business, the interest on any money they've borrowed and income taxes, with money left over for profit.

When the business acquires products, the cost of them goes into what's called an inventory asset account. The cost is deducted from the cash account, or added to the accounts payable liability account, depending on whether the business has paid with cash or credit.

Making a Profit

2010-02-08T20:28:00.001-08:00

Accountants are responsible for preparing three primary types of financial statements for a business. The income statement reports the profit-making activities of the business and the bottom-line profit or loss for a specified period. The balance sheets reports the financial position of the business at a specific point in time, ofteh the last day of the period. and the statement of cash flows reports how much cash was generated from profit what the business did with this money.

Everyone knows profit is a good thing. It's what our economy is founded on. It doesn't sound like such a big deal. Make more money than you spend to sell or manufacture products. But of course nothing's ever really simple, is it? A profit report, or net income statement first identifies the business and the time period that is being summarized in the report.

You read an income statement from the top line to the bottom line. Every step of the income statement reports the deduction of an expense. The income statement also reports changes in assets and liabilities as well, so that if there's a revenue increase, it's either because there's been an increase in assets or a decrease in a company's liabilities. If there's been an increase in the expense line, it's because there's been either a decrease in assets or an increase in liabilities.

Net worth is also referred to as owners' equity in the business. They're not exactly interchangeable. Net worth expresses the total of assets less the liabilities. Owners' equity refers to who owns the assets after the liabilities are satisfied.

These shifts in assets and liabilities are important to owners and executives of a business because it's their responsibility to manage and control such changes. Making a profit in a business involves several variable, not just increasing the amount of cash that flows through a company, but management of other assets as well.

Personal Accounting

2010-02-06T16:50:00.000-08:00

If you have a checking account, of course you balance it periodically to account for any differences between what's in your statement and what you wrote down for checks and deposits. Many people do it once a month when their statement is mailed to them, but with the advent of online banking, you can do it daily if you're the sort whose banking tends to get away from them.

You balance your checkbook to note any charges in your checking account that you haven't recorded in your checkbook. Some of these can include ATM fees, overdraft fees, special transaction fees or low balance fees, if you're required to keep a minimum balance in your account. You also balance your checkbook to record any credits that you haven't noted previously. They might include automatic deposits, or refunds or other electronic deposits. Your checking account might be an interest-bearing account and you want to record any interest that it's earned.

You also need to discover if you've made any errors in your recordkeeping or if the bank has made any errors.

Another form of accounting that we all dread is the filing of annual federal income tax returns. Many people use a CPA to do their returns; others do it themselves. Most forms include the following items:

Income - any money you've earned from working or owning assets, unless there are specific exemptions from income tax.

Personal exemptions - this is a certain amount of income that is excused from tax.

Standard deduction - some personal expenditures or business expenses can be deducted from your income to reduce the taxable amount of income. These expenses include items such as interest paid on your home mortgage, charitable contributions and property taxes.

Taxable income - This is the balance of income that's subject to taxes after personal exemptions and deductions are factored in.

Bookkeeping Basics

2010-02-06T11:44:00.001-08:00

Most people probably think of bookkeeping and accounting as the same thing, but bookkeeping is really one function of accounting, while accounting encompasses many functions involved in managing the financial affairs of a business. Accountants prepare reports based, in part, on the work of bookkeepers.

Bookkeepers perform all manner of record-keeping tasks. Some of them include the following:

-They prepare what are referred to as source documents for all the operations of a business - the buying, selling, transferring, paying and collecting. The documents include papers such as purchase orders, invoices, credit card slips, time cards, time sheets and expense reports. Bookkeepers also determine and enter in the source documents what are called the financial effects of the transactions and other business events. Those include paying the employees, making sales, borrowing money or buying products or raw materials for production.

-Bookkeepers also make entries of the financial effects into journals and accounts. These are two different things. A journal is the record of transactions in chronological order. An accounts is a separate record, or page for each asset and each liability. One transaction can affect several accounts.

-Bookkeepers prepare reports at the end of specific period of time, such as daily, weekly, monthly, quarterly or annually. To do this, all the accounts need to be up to date. Inventory records must be updated and the reports checked and double-checked to ensure that they're as error-free as possible.

-The bookkeepers also compile complete listings of all accounts. This is called the adjusted trial balance. While a small business may have a hundred or so accounts, very large businesses can have more than 10,000 accounts.

-The final step is for the bookkeeper to close the books, which means bringing all the bookkeeping for a fiscal year to a close and summarized.

Profit and Loss

2010-02-05T22:30:00.001-08:00

It might seem like a no-brainer to define just exactly what profit and loss are. But of course these have definitions like everything else. Profit can be called different things, for a start. It's sometimes called net income or net earnings. Businesses that sell products and services generate profit from the sales of those products or services and from controlling the attendant costs of running the business. Profit can also be referred to as Return on Investment, or ROI. While some definitions limit ROI to profit on investments in such securities as stocks or bonds, many companies use this term to refer to short-term and long-term business results. Profit is also sometimes called taxable income.

It's the job of the accounting and finance professionals to assess the profits and losses of a company. They have to know what created both and what the results of both sides of the business equation are. They determine what the net worth of a company is. Net worth is the resulting dollar amount from deducting a company's liabilities from its assets. In a privately held company, this is also called owner's equity, since anything that's left over after all the bills are paid, to put it simply, belongs to the owners. In a publicly held company, this profit is returned to the shareholders in the form of dividends. In other words, all liabilities have the first claim on any money the company makes. Anything that's left over is profit. It's not derived from one element or another. Net worth is determined after all the liabilities are deducted from all the assets, including cash and property.

Showing a profit, or a positive figure on the balance sheet, is of course the aim of every business. It's what our economy and society are built on. It doesn't always work out that way. Economic trends and consumer behaviors change and it's not always possible to predict these and what income they'll have on a company's performance.

Careers

2010-02-05T20:44:00.001-08:00

There are many different careers in the field of accounting ranging from entry-level bookkeeping to the Chief Financial Officer of a company. To achieve positions with more responsibility and higher salaries, it's necessary to have a degree in accounting as well as achieve various professional designations.

One of the primary milestones in any accountant's career is to become a Certified Public Accountant or CPA. To become a CPA you have to go to college with a major in accounting. You also have to pass a national CPA exam. There's also some employment experience required in a CPA firm. This is generally one to two years, although this varies from state to state. Once you satisfy all those requirements, you get a certificate that designates you as a CPA and you're allowed to offer your services to the public.

Many CPAs consider this just one stepping stone to their careers. The chief accountant in many offices is called the controller. The controller is in charge of managing the entire accounting system in a business stays on top of accounting and tax laws to keep the company legal and is responsible for preparing the financial statements.

The controller is also in charge of financial planning and budgeting. Some companies have only one accounting professional who's essentially the chief cook and bottle washer and does everything. As a business grows in size and complexity, then additional layers of personnel are required to handle the volume of work that comes from growth. Other areas in the company are also impacted by growth, and it's part of the controller's job to determine just how many more salaries the company can pay for additional people without negatively impacting growth and profits.

The controller also is responsible for preparing tax returns for the business; a much more involved and complex task than completing personal income tax forms! In larger organizations, the controller can report to a vice president of finance who reports to the chief financial officer, who is responsible for the broad objectives for growth and profit and implementing the appropriate strategies to achieve the objectives.

Bookkeeping

2010-02-05T15:02:00.001-08:00

So what goes on the accounting and bookkeeping departments? What do these people do on a daily basis?

Well, one thing they do that's terribly important to everyone working there is Payroll. All the salaries and taxes earned and paid by every employee every pay period have to be recorded. The payroll department has to ensure that the appropriate federal, state and local taxes are being deducted. The pay stub attached to your paycheck records these taxes. They usually include income tax, social security taxes pous employment taxes that have to be paid to federal and state government. Other deductions include personal ones, such as for retirement, vacation, sick pay or medical benefits. It's a critical function. Some companies have their own payroll departments; others outsource it to specialists.

The accounting department receives and records any payments or cash received from customers or clients of the business or service. The accounting department has to make sure that the money is sourced accurately and deposited in the appropriate accounts. They also manage where the money goes; how much of it is kept on-hand for areas such as payroll, or how much of it goes out to pay what the company owes its banks, vendors and other obligations. Some should also be invested.

The other side of the receivables business is the payables area, or cash disbursements. A company writes a lot of checks during the course of year to pay for purchases, supplies, salaries, taxes, loans and services. The accounting department prepares all these checks and records to whom they were disbursed, how much and for what. Accounting departments also keep track of purchase orders placed for inventory, such as products that will be sold to customers or clients. They also keep track of assets such as a business's property and equipment. This can include the office building, furniture, computers, even the smallest items such as pencils and pens.

Accounting Principles

2010-02-05T11:34:00.001-08:00

If everyone involved in the process of accounting followed their own system, or no system at all, there's be no way to truly tell whether a company was profitable or not. Most companies follow what are called generally accepted accounting principles, or GAAP, and there are huge tomes in libraries and bookstores devoted to just this one topic. Unless a company states otherwise, anyone reading a financial statement can make the assumption that company has used GAAP.

If GAAP are not the principles used for preparing financial statements, then a business needs to make clear which other form of accounting they're used and are bound to avoid using titles in its financial statements that could mislead the person examining it.

GAAP are the gold standard for preparing financial statement. Not disclosing that it has used principles other than GAAP makes a company legally liable for any misleading or misunderstood data. These principles have been fine-tuned over decades and have effectively governed accounting methods and the financial reporting systems of businesses. Different principles have been established for different types of business entities, such for-profit and not-for-profit companies, governments and other enterprises.

GAAP are not cut and dried, however. They're guidelines and as such are often open to interpretation. Estimates have to be made at times, and they require good faith efforts towards accuracy. You've surely heard the phrase "creative accounting" and this is when a company pushes the envelope a little (or a lot) to make their business look more profitable than it might actually be. This is also called massaging the numbers. This can get out of control and quickly turn into accounting fraud, which is also called cooking the books. The results of these practices can be devastating and ruin hundreds and thousands of lives, as in the cases of Enron, Rite Aid and others.

Basic Accounting Principles

2010-02-05T10:49:00.000-08:00

Accounting has been defined as, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: "facilitating the administration of economic activity. This function has two closely related phases: 1) measuring and arraying economic data; and 2) communicating the results of this process to interested parties."

As an example, a company's accountants periodically measure the profit and loss for a month, a quarter or a fiscal year and publish these results in a statement of profit and loss that's called an income statement. These statements include elements such as accounts receivable (what's owed to the company) and accounts payable (what the company owes). It can also get pretty complicated with subjects like retained earnings and accelerated depreciation. This at the higher levels of accounting and in the organization.

Much of accounting though, is also concerned with basic bookkeeping. This is the process that records every transaction; every bill paid, every dime owed, every dollar and cent spent and accumulated.

But the owners of the company, which can be individual owners or millions of shareholders are most concerned with the summaries of these transactions, contained in the financial statement. The financial statement summarizes a company's assets. A value of an asset is what it cost when it was first acquired. The financial statement also records what the sources of the assets were. Some assets are in the form of loans that have to be paid back. Profits are also an asset of the business.

In what's called double-entry bookkeeping, the liabilities are also summarized. Obviously, a company wants to show a higher amount of assets to offset the liabilities and show a profit. The management of these two elements is the essence of accounting.

There is a system for doing this; not every company or individual can devise their own systems for accounting; the result would be chaos!

What Is Accounting Anyway?

2010-02-04T13:01:00.000-08:00

Anyone who's worked in an office at some point or another has had to go to accounting. They're the people who pay and send out the bills that keep the business running. They do a lot more than that, though. Sometimes referred to as "bean counters" they also keep their eye on profits, costs and losses. Unless you're running your own business and acting as your own accountant, you'd have no way of knowing just how profitable - or not - your business is without some form of accounting.

No matter what business you're in, even if all you do is balance a checkbook, that's still accounting. It's part of even a kid's life. Saving an allowance, spending it all at once - these are accounting principles.

What are some other businesses where accounting is critical? Well, farmers need to follow careful accounting procedures. Many of them run their farms year to year by taking loans to plant the crops. If it's a good year, a profitable one, then they can pay off their loan; if not, they might have to carry the loan over, and accrue more interest charges.

Every business and every individual needs to have some kind of accounting system in their lives. Otherwise, the finances can get away from them, they don't know what they've spent, or whether they can expect a profit or a loss from their business. Staying on top of accounting, whether it's for a multi-billion dollar business or for a personal checking account is a necessary activity on a daily basis if you're smart. Not doing so can mean anything from a bounced check or posting a loss to a company's shareholders. Both scenarios can be equally devastating.

Accounting is basically information, and this information is published periodically in business as a profit and loss statement, or an income statement.

Accept Credit Card In Your Business

2010-01-20T09:22:00.000-08:00

Should you accept credit card in your business transactions? Many small companies or home-based businesses avoid doing so because of their concern over fees and expenses that may drain away potential profits. Yet the actual cost of implementing credit card payment processing equipment, along with associated monthly and annual fees, may cost less than you think. The application process is easy, many banks are willing to work with small business owners, and exciting profits are possible, so what are you waiting for?

Learning how to accept credit card in your business processing is simple. First you will need to apply for a merchant services account. You can do this by browsing the Internet to find a bank, credit union, or other reputable lender show is willing to help you set up a credit card processing account. Then you will need to decide which equipment plan to go with. You can start small and work your way through increasingly complex layers of sophisticated technology as additional sales bring in extra profit for reinvestment. However, there are a few guidelines to keep in mind as you implement credit card processing strategies for your business.

To accept credit card in your business customers, you should first find a merchant services account provider, often a bank or other financial institution that can help you by underwriting the associated expenses for this type of project. Many lenders will let you apply over the Internet for a merchant services account, and you may receive a response within a day or two. Decide what type of processing will work best with your business. For on-site companies or home-based businesses, you could set up a credit card processor for basic credit payments when a person comes by to purchase your products or services. But if you travel to your customers to deliver goods, you may want to invest in a wireless credit processor that can go with you. Typically these items cost several hundred dollars, or you can lease them for a set monthly fee. Depending on your personal business needs, you may want to get a pager, an e-check and debit processor, or Website credit processing as your business expands into the e-commerce arena.

The next most important way to accept credit card in your business transactions is to set up a Website as an Internet marketing tool. Your merchant account will help you to do this at a pace that will match your company budget. The Website can provide information about your goods and services, price lists, FAQs, industry tips, and a host of other information that will attract customers from around the world. Providing credit card processing service at your site can increase your sales volume and impress customers who are looking for convenient shopping methods without the hassle of waiting for a store to open or a sales associate to offer assistance.

Move your business to the next level of sophistication by applying for a merchant services account so you can accept credit card in your business payments.

A Peek into Business Process Re-engineering

2010-01-19T15:41:00.000-08:00

Business process re-engineering (BPR) sounds esoteric at best, and maybe a little pretentious. Wouldn’t it be simpler to say business process change?

Most people understand what a business process is but when you combine it with re-engineering, it suddenly sounds vague.

The ProSci-sponsored BPR Online Learning Center calls a business process “a set of activities that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools.”

It is simple. The way we interpret that is:

there are many ways of doing business,

when one of those ways does not work or is considered to be ineffective it has to be improved,

certain elements are introduced to make it better (“inputs”),

those elements translate into a better product or service,

that product or service is supposed to serve another person (a customer, a supplier, a partner)

That’s elementary enough, but why do business processes have to be re-engineered?

It’s All About the Customer (and Competition)

The philosophy behind business process re-engineering is to please the customer. By delighting him, we get to keep him, turning him into a loyal disciple.

Rivals have a sneaky way of snatching customers away from us. It’s not because this world is full of sly and evil people, it’s because we tend to sit on our bottoms and think that we’ve finally got it made. We’ve become lax.

Business process improvement, according to ProSci, is not be confused with business process re-engineering. Instead of improving on current processes, the re-engineering concept says that because the technique is no longer viable, it has to be replaced, abandoned. There’s a need to establish a clean slate, as the BPR Online Learning Center teaches us.

Business process re-engineering, just like the DMAIC in Six Sigma, presupposes a series of stages: stage 1 involves a definition of the project – its rationale, objectives and scope. Stage 2 covers the entire learning process wherein we obtain as much information as we can about our employees, customers, suppliers and competitors – including non-competitors and align that new information with technology.

Armed with this knowledge, the next stage – stage 3 - is to set up our mission. Others call it a vision of the future. This requires a new set of business processes. Once we’ve determined the desired outcome of this transition, we move on to the next stage which calls for a plan of action that allows us to measure the gap between our company’s present state and where we want it to go.

When we get to this stage, solutions logically follow.

If you’re still wondering what distinguishes business process improvement from business process re-engineering, think of the starting point: are you starting from an existing process and want to improve on it, or do you want to start from scratch?

Thanks to Information Technology

Jump to globalization. We’re ushering in new technologies and they’re coming faster than we can learn them. There’s also this whole new talk about customer relationship management (CRM) strategies. We’re huffing and puffing and bursting at the seams. Businesses that have not adapted to global trends or introduced newer technologies into their operations will be clobbered by the competition. Today’s companies cannot afford to sit back and watch while others struggle with changes in the industry.

Thanks to information technology and the creation of new business models, the world of e-commerce has given new meaning to the way we do business. As Hui-Liang Tsai puts it, “e-commerce is no longer a way to gain competitive advantage, it is a competitive imperative.” (Information Technology and Business Process Re-engineering: New Perspectives and Strategies, Praeger Publishers, Connecticut, 2003). While companies are trying to keep up with technologies, customers are also changing. They are more demanding and are never satisfied. They fall out of love, and don’t necessarily have to explain why.

Picture the speed with which information is transmitted with just a click of the mouse. It used to be that urgent documents had to be couriered by special messenger or faxed immediately; today, documents are electronically portable. Mr. Tsai says that this phenomenon alone is producing a new crop of workers – he calls them knowledge workers. We are looking at the transformation of industrial society into an information society.

A Franchise - Your own business, but include support and guidance.

2010-01-19T08:40:00.000-08:00

Many people dream of running their own business and of giving up the day job. Most of these ambitious individuals only have the most basic of skills needed, and recognize that their business would not stand a great chance of success.

A Franchise is the answer for many of these would-be entrepreneurs.

A Franchise works by the franchiser selling a business plan to the franchisee. The fee paid may include marketing, a site, a website and vehicles in company livery. The most important thing the franchiser provides is training in implementing the business plan.

Franchise businesses have a much greater chance of success because the franchisee has training, guidance and supervision in the early stages. This support is expensive and the franchisee may have to pay a percentage of turnover or profits to the franchiser.

Many high street businesses are run on a franchising business model including McDonalds and many other fast food and coffee businesses. Other favorites are cleaning businesses and vending machine businesses.

A franchise has disadvantages, too. You have to obtain your supplies from a limited range of approved suppliers, or even, just from the franchiser. You have to stick with the franchiser's business image and are not free to develop or change the business image as you want to.

You may find franchises from unscrupulous business owners who have decided to offer franchises in an unproven business to make a quick buck. You need to research any potential franchise in great detail, and to make sure the franchiser is part of a Franchise Member Group. If possible, you should talk to others with the same franchise and try to benefit from their experience.

Franchise operations do offer a supported and easier route into running your own business than just going alone, but there can be heavy upfront costs. Your research will soon show you that most franchises cost between five and twenty thousand dollars. You may find a vending machine franchise for less, and a McDonald’s franchise could cost you a cool $250K.

A Comprehensive Guide On Indian Suppliers!

2010-01-18T17:39:00.000-08:00

If you are looking out for Indian suppliers for a variety of product or commodity under the sun, don’t run from pillar to post. Online directories offer you an online one source, from where you can search an Indian supplier of a particular product and at the same time compare the rates and the kind of services too.

Such directories are updated guide to help a user find anything in this world, with just a click and in few seconds you have your result displayed. Online directory provides marketing services and promotional tools to buyers and sellers to find new trade opportunities and promote their businesses online.

Directories offer you an online marketplace that facilitates trade between global buyers and sellers. It is open for all the companies looking for global business. You are able to search suppliers by writing the keyword you are looking for or make Indian suppliers find you by posting your buying leads. It provides you with plenty of different categories such as business services, computer and electronics, clothing, textiles and accessories and much more. It offers you either free or paid services in order to find new buyers; it also gives you the possibility to post your product catalogue, post a selling lead or search for new buyers to send them inquires.

If it is jewellery you are looking for, manufacturer and supplier of indian fashion jewelry, beaded fashion jewelry such as fashion necklaces, resin bangles, glass beaded bracelets, cuff bangle bracelets, metal earings, beaded earrings, metal necklaces set and wooden necklaces whatever it is about jewelry just click and find it yourself. Or find Indian suppliers and manufacturers of fashion necklaces, fashion earrings and fashion bracelets. Also they are engaged in supplying handmade ceramic beads, ceramic beads, millefiori beads, glass beads, handcrafted glass beads and indian glass beads.

Some of them do provide free and premium membership services using which suppliers can easily create their own homepage to showcase products online, locate and contact global buyers, reply to buying leads and post trade offers to sell. Buyers can use the site for free and can easily search for new products, locate and contact suppliers directly, post buying leads and use advanced e-marketing and communication tools to chat and meet the suppliers.

Your work is reduced to such an extent as you can now find your Indian suppliers for all your products. Without much processing time, or money shelled out, just find simple solutions to your queries easily. Reach out now! Just play around with your mouse, just a click.

7 No Cost Tips to Market Your Business

2010-01-18T14:37:00.000-08:00

Marketing a business can be fun, exciting and creative. It can also be very frustrating and expensive if one doesn’t know what outcome they are looking for or how to evaluate cost effective methods of marketing.

Over the years people have come to know me for my unique ability to develop low cost and no cost strategies to market and promote a business, product or service. Strategies that have realized incredible returns.

Some of my successes have included:

- Before my last book was published I pre-sold over $8,000 in books
- Over 250 people registered for a recent seminar in less than 2 weeks and the cost to promote was under $25
- One company used my strategies for a career expo and made over $180,000 in consulting fees
- One speaker sold over $23,000 in product sales back of the room at a two hour seminar with strategies outlined in my program

I don’t share this to impress anyone, rather to impress upon you when using the right strategies for your market, you can realize some incredible results.

People have also come to know me as someone who is a stickler when it comes to putting systems in place. My marketing successes are a direct result of the systems I have implemented.

With a bit of forethought, planning and desire, you can successfully market your business in a very effective manner. Below are seven proven strategies sure to increase visibility, leads and sales.

1. Business Cards
Business cards are often one of the most underutilized tools in one’s marketing.
Use the front and back of your business card to gain full benefit. Depending on your market you can put some very valuable information on the back such as a sports schedule, emergency numbers, or special dates people want to remember.

Keep some in your wallet, your automobile, on your desk, and some at home. Be sure to carry them with you wherever you go and be willing to hand them out as opportunity presents itself.

Creatively distribute your card. When you eat out you can leave one with the tip.
If you borrow a library book, use one as a book mark. Hand them to clerks in stores who may know other people who could use your product or service.

When someone gives you their business card be sure to enter their information in your database. Send them a short note or email within 48 hours of meeting them to keep your name fresh in their mind.

2. Send a picture
A great way to keep your name fresh in a customer’s mind is to send them a picture of when they purchased a product or service from you.

Put a picture of a buyer’s auto purchase in a beautiful calendar. Likely, the proud owner of the vehicle will display the calendar for the next 365 days.

For specialty gift shops, when a customer makes a substantial purchase, have a picture taken with the shop owner. Frame the picture and send it to the customer.
Chances are very good the picture will be displayed proudly for friends and family to see.

A dentist who specializes in smile makeovers can easily arrange to have a professional makeup artist and photographer capture the patient’s beautiful new smile. No doubt the patient will be more than happy to show others their new look.

3. Associations
Associations particular to your market are a great resource for marketing. There are associations specific to virtually any industry, job type or business. A quick web search will likely show you how much is available.

A major opportunity within many organizations is the chance to network. Additionally, to make presentations. Along with presentations come publications.
Often, when you do a presentation, you will get a mention in the association newsletter, their Ezine and/or on their website.

In many cases, when an organization has a newsletter or Ezine, they welcome the presenter writing a press announcement for them. It saves them time and often assures you have a better chance of the information making it into the publication.

They may also welcome you writing an article for their publication or website.
This lends itself to pre-presentation visibility. Additionally, you will position yourself as an expert and increase credibility.

Most organizations have the following opportunities that can help you to gain visibility and do some very effective marketing:

-Newsletters
-Internet listings
-Links to you website
-Discounted advertising rates
-Networking opportunities
-Business referral services
-Special recognition events
-Education seminars
-Business and membership directories

In many cases you will need to be a member of the association to take advantage of the multiple marketing opportunities. In other cases membership is not necessary.

4. Committee Involvement
Committee involvement is a great way to give back to the association or community while building visibility for you and your business. In some cases, you may even want to get involved in a committee where you have little experience or knowledge. This will give you an opportunity to stretch yourself and meet and network with individuals you may not have otherwise had the chance to meet.

5. Contests and drawings
Contests are a favorite for many businesses such as restaurants or those that have high foot traffic. Contests are a great way to build your database quickly.
You are generating very hot leads when you have a contest with people who have already frequented your place of business. The key though is to do back -end marketing. Far too many businesses hold contests, get lots of names and do nothing with them. In this case, it is a complete waste of time to hold a contest.
You can advertise a contest to gain new foot traffic in your place of business.
Trade show booths are a great place to hold a contest. Pre-show marketing helps to generate traffic at your booth. Invite people to stop by booth # _____ (whatever your booth is) to enter to win. Creative contests can also generate free publicity.

6. Cross-promoting
Join with other companies who have products or services that compliment yours and promote each other. Let’s say you have a massage business. You could partner with a candle company to sell their candles to your massage clients. They can give out coupons for your massage business. Or the candle company can partner with a gift basket company. Cross-promoting is only limited by your imagination.

This can considerably cut down the cost of business promotion and allow each business to use promotion techniques that might be too expensive to implement alone.

7. Bonuses
Secure special offers from various businesses who want to share a similar market as you. When a customer buys a minimum amount they receive a bonus packet with the various offers from the other vendors. This is a win/win all the way around. The other vendors gain visibility, you have something extra to offer you customers and the customers get incredible value for their purchase.

Be aware of who you cross-promote and joint venture with. You want someone who will be equally committed to a campaign.

I Remember Going To The Event But I Don't Remember Much Else.

2010-01-16T14:19:00.000-08:00

Hey, Jack! That seminar I sent you to last week? Any chance you can give us all an overview at the team meeting?" Jack's boss had just delivered his worst nightmare. Not only had the event been tedious and disjointed, he couldn't find the paperwork to remind himself of the key points and his memory was not providing any brilliant clues.

You want your event to be memorable. You want it to flow effortlessly from beginning to end. You want every aspect of the event to be professional. This means you don't just want the event to be managed; you want it to be designed with a degree of panache and flair.

Take some inspiration from the radio and television networks that make their living from presenting. Notice how they use words, music and images to identify a complete program; how programs are broken down into chunks and how one chunk is blended into the next using segues (pronounced segway).

A simple segue does the following:

* It acknowledges what has gone before

* It connects that presentation to the overall theme of the event

* It then connects both with the presentation to follow and in some cases introduces the speaker.

For example

"That was an opportunity for you to understand the theory of how our organization works with suppliers using the Provider Performance Feedback Process. Now it's time to hear a real-life example from one of our suppliers who has been trialing this process for 6 months. Jane Smith is the Sales Director of Jones Cooper Inc and she has been asked to give her unbiased opinion about working with the Provider Performance Feedback Process"

Branding

No event is too small to have its own identity. Even a one hour seminar should have some sort of a personality to catch the imagination of the potential audience. An appropriate piece of graphics can be commissioned for a very reasonable fee and will tie in with the theme of the event. For example, Herbal Medicine would feature naturalistic plant imagery whereas Engineering might use cogs, electronic circuitry or industrial illustrations.

This piece of graphic art which might also incorporate the name of the event will, ideally, be used on all printed matter, presentation material, signage and promotional items.

You may have a talented amateur graphic artist in your company who can produce good work but be careful that their quality is appropriate and be honest with them if it does not meet the standard expected.

Professional graphic artists use computer programs that link to the systems used by printers, so they can guarantee that the finished product will look like the samples they present to you.

Branding, it seems, has deep psychological meaning. Apparently our brains deal with a brand image in a different way from most other information as it taps into our emotions. Emotional memory is more accessible; think about TV adverts. So, it makes sense to connect with your audience in as many ways as you can.

If Jack had been looking for the big fluorescent green folder with the bright red tree printed on the spine and if the contents reminded him of a coherent, connected list of stimulating topics on the subject of 'Sustainability', he might not be dreading the team meeting quite as much.

Exactly What to Say When Asked, "How Much Do You Charge?"

2010-01-15T16:06:00.000-08:00

A client with a creative business called me one day and asked the following question. It's a question I get asked frequently, so rather than write an entire article, I decided just to tell you exactly what I told her.

Kirstin,

"I never know what to say when a potential customer calls and asks 'How much do you charge? What are your fees?'
I don't want to shoot myself in the foot by quoting something too low, but also don't want the caller to hear a number that they think is too high and hang up.
What do I say to them so I don't put them off, but also don't immediately take myself out of the running to get their business?"

-Ann P., Philadelphia, PA

Ann,

Don't feel compelled to blurt out a number or hand over a price sheet. Calmly and confidently tell the prospect, "It depends." Follow up with, "Let me ask you a few questions...." Then proceed to ask the prospect questions that will help you learn about her needs, uncover her concerns, understand her methods of measuring success, and determine how to show the value of your services.

Without knowing the basic information above, you are not in any position to be quoting prices and fees. Do yourself and your potential client a favor and don't rush into discussing pricing until you have all the facts, m'am.

-Kirstin Carey
http://www.MyCreativeBiz.com

Even Bill Gates Likes Free Software

2010-01-15T10:39:00.000-08:00

Linux can save your business money. Powerful Linux applications power servers, desktops and laptops across enterprises and small businesses each day. Here in our business, our websites are open source, our support module is Linux, the CRM application and the Accounting system we use to run our business is open source software. Best of all our Linux tools, operating systems and applications, are all freely distributed.

Linux people are different. They search for power and function, but that is not all sought. Linux people believe that software should be freely distributed. The Linux community respects Microsoft; fantastic company whose apps like Office have improve millions of lives, really cool. But the dark secret in Linux circles paints Microsoft as a dinosaur, Linux people believe that expensive software with painful upgrade fees is headed for trouble.

Bill Gates Sees a "Sea Change" in Application Software

Microsoft sells operating systems and applications, and keeps on selling them. Backward compatibility with applications like Word can be hard and is this pain is by design. Microsoft wants to create pain and then fix, with upgrades. Microsoft wants upgrade dollars. This software model is starting to collect some rust. And the reason for this: free software is good. Free software is now available; free business applications to run your business, which are maintained, supported and best of all, are freely distributed. Bill Gates’s vision has focused on the on-line delivery model and even the free application delivery model.

Linux Distributions are a Personal Choice

Linux is built in distributions or releases, all slightly different. Ubuntu, a terrific linux distribution, is so good that it may be nudging Windows off desktops. Ubuntu is easy to deploy and easy to use plus it is loaded with applications for home users and business users. The Ubuntu desktop market share numbers are still viewed with a magnifying glass, but not too long ago, you needed a microscope. Ubuntu is easy to install and easy to use. Just get the software at the website and burn a CD. Ubuntu has just one CD or one ISO which loads in a snap. Red Hat, another distribution has 6 and takes much longer to complete. Ubuntu is lean because after the initial setup the user can craft his Ubuntu system just how he likes. The internet has Ubuntu distribution sites that power a tool called apt-get. All you do is apt-get install from a command line or user the Add Software GUI tools and you are getting the best linux apps right off the shelf and put right into your menu.

Ubuntu Distribution

The Ubuntu distribution has an Office suite with word processing, a spreadsheet, and presentation modules. All work can be saved in common formats like .doc or xls and are completely compatible with Microsoft products. The base Ubuntu application is loaded with graphics applications, CD, DVD burning and creation, multi-media including music and movie players, back-up apps, powerful anti-virus tools and networking applications that are best of breed. There is built in VOIP and message clients and many cool apps like Sticky Notes to make you more efficient.

Free Business Linux Applications

GNU Cash, free financial tracking, similar to Quicken. Cut an invoice, track bank accounts, run a budget and report your cash flow. Import your bank files and create buckets of spend for your financial analysis that will make an accountant jealous.

PBX and Phone Systems

Elastix will power up your phones. Did you know that most PBX commercial software is run using a freely distributed tool called Astericks. Elastix has re-packaged Astericks to ease the deployment and offers support. Expensive PBXs are not necessary. Linux has adapted other telephony tools like VOIP, predictive dialers, and call center solutions.

Do you need a content management system? A website or an intranet for your company. Plone, Drupal, Joomla deliver big. The functionality in these freely distributed tools match the priciest CMS software. The tools are supported and you can even buy how to books at your local bookstore.

Customer Relationship Management and CRM

How about sales tools, CRM or order management, even inventory management software? Full power CRM or customer relationship management tools are available for free or for super low prices. DataForceCRM, based in Dallas, is deploying a sugarcrm linux derivative that has been enhanced and strengthened and customers are shaving 80% off typical user fees. DataForceCRM offers wikis, forums, full documentation and will make sure user adoption is high. The tool is super flexible, has Outlook integration, manages marketing, tracks sales, eyeballs inventory, push button order management, gives customers’s a support tool and is Freely distributed to companies with less than 10 users. If your business has over 10 users, prices are still a bargain.

Companies pay high prices for customer support modules. OTRS, another open source backbone application in commercial applications, is there for the download and configuration. After set up your business will have a fully featured, professional trouble ticket tracker helping your clients get what they need.

Virtualization is taking IT departments by storm. Virtualization turns your single computer, you need some memory, into many virtual machines. This streamlines hardware usage and turns hard ware utilization way up. State of the art Virtualization called Xen comes with many linux distributions. In Ubuntu do apt-get install vmware-server and a fine tool is on its way to your machine.

The coolest thing about Linux is that in the 30 minutes I took to write this article, more applications were probably released. Sourceforge.net, a depository for linux tools is one of the busiest sites on the internet and full of Linux value added applications. Just yesterday I needed to edit a PDF. I google up pdfnet and there I went, for free. Very cool, ERP, or enterprise resource planning is free too. Linux support was targeted for genius level IQs but not any longer.

Conclusion
Companies realize good training and support drives value. Applications, even if free, are expensive if the learning curve is steep and if users are not guide. Smart open source companies are rolling out support modules to all service all learning types, wikis, live chat, forums, documentation and live phone contacts. Now with support in place, training available communities grow and grow. The applications I mentioned hit the tipping point where the user community is user support. Just this morning I was stumped with a virtual machine question. I googled the error code and added for Ubuntu. The page came up faster than I could call support, and the answer was clearly defined. Cool.

New technology can be daunting to learn and use. The linux world knows this and just in the last few years, has put strong arms around user friendliness. Opensource software is easy to deploy, easy to use, powerful and supported. I just covered a tiny fraction of applications available today. Just for fun, visit the sites in this article. Check out the super cool applications and then put a number to your potential savings. You may become a Linux Geek.

Evaluate Your Customer

2010-01-14T15:58:00.000-08:00

Evaluate Your Customer

When a customer walks into your office, don’t sell them the first product that comes to mind. Sit them down and evaluate their needs, than sell them the products that meet their needs.

I once worked with a guy in the banking industry, who was one of the best at explaining the benefits and features of our products, the only problem was, he was spending so much of his time explaining, but never selling anything.

He never sold anything because he never took the time to get to know what his customer’s needs were, therefore he was attempting to sell them things that they didn’t really need.

Nobody will buy things that they don’t need.

This is why it is so very important to evaluate your customer.

Start off by making your customer as comfortable as you possibly can, talk about non-business topics such as the weather, sports, or a current event.

Once you and your customer have built a good enough report, start to ask some questions so that you may evaluate your customer’s needs.

You can begin by finding out why your customer came into see you in the first place. Find out what products they already have. Find out if they already deal with one of your competitors. If so, find out all you can about the products and services they have with your competitor, so that you may compare products and fee’s. This is a perfect opportunity to let your customer know how much better your products and services are compared to your competitors.

Find out what it is they need and can afford, than sell them the products you believe to be ideal for their needs.

Once you have evaluated your customer, the chances of making a sale will be very good, because you will now be offering your customer something they need and can use, so they will most likely buy it.

The last thing a customer wants to hear about, is a bunch of stuff they don’t need. They have a reason for coming into see you, so find out what that reason is and do all you can to satisfy their needs.

Don’t waste your time trying to push off all of your products on them at once. This time can be better spent evaluating them.

Get to know your customer, evaluate their needs, than meet their needs with the appropriate products.

By evaluating your customer before you sell, you will find that the sales process will come much easier to you. Good luck.

This article may be reproduced by anyone at any time, as long as the authors name and reference links are kept in tact and active.

Don't Think Objections Are Necessarily Bad.

2010-01-14T09:17:00.000-08:00

Begin by examining the positive aspects of a prospect’s objections to see them as challenges. Any salesperson who wants a job without difficult questions should go to the stadium and sell hot dogs! The point is, without the challenges of selling, you would simply be an order-taker, and sales is certainly not that!

In terms of personal satisfaction, the number of objections you meet on a daily basis in your particular marketplace tends to indicate the amount of money and prestige that is assigned to your particular position. In general, people are rewarded for the amount of difficulty that goes with what they do. Going back to the ball park example, common knowledge tells us that those who sell hot dogs at ballgames definitely do not generate as much income as those who encounter objections regularly in their sales positions. Where would you prefer to be on the financial ladder? Would you rather be on top, facing numerous objections throughout your sales day, or on the bottom, facing no objections or adversity but making no money?

You should be optimistic when you are faced with an objection or tough question. You should see this objection as an indicator that you are moving in some sort of direction: either successfully completing the sale or failing to make the sale. In either case you know where you are and what you need to do in order to move ahead, take corrective action, or break off the relationship. When a prospect voices his or her concern over a certain aspect of your product or service, a chance has arisen for you to redirect your sales presentation. You now have the chance to move away from things that the prospect sees as undesirable in favor of moving towards those things that the prospect wants from you, your organization, or your product or service. Unless the prospect's objections completely blow away your product's benefits, you still have the opportunity to save the sale.

Objections also give you the opportunity to hone your sales skills. The more objections that you face and successfully conquer, the better salesperson you become. As you start to notice patterns in the ways prospects present their objections as well as the consistent themes in these objections, you will be able to almost predict what kinds of objections your prospects will present. You’ll learn how to ask questions that help you flush them out or even eliminate them. Knowledge leads to improvement, so knowledge involving the ways you deal with prospects' objections can only lead to improvement in your sales record, and, in turn, improvement in your income.

While objections obviously present salespeople with barriers to actually finalizing transactions, viewing these objections and tough questions in a positive light can only help you make more sales. Objections can be seen as challenging aspects of your sales job and mastering objections can lead to an improvement in your sales performance as well as your income. Objections may also be seen as a guide that points you in the right direction toward closing the sale. Finally, these questions and objections help the salesperson become skilled in dealing with objections. Remember, "Practice does make Perfect," and the case of conquering objections is no different.

5 Ways To Beef Up Sales...Immediately

2010-01-13T16:34:00.000-08:00

Last week, one of my clients—we'll call him Rick—had a demo scheduled with a prospect. The standard "show up and throw up" they typically did early in the sales cycle.

Trying to shorten the sales cycle, I asked naively, "Why does the customer want to buy? What are they trying to accomplish?" Rick couldn't tell me. I asked if he thought the salespeople knew. He said no. I gave him an assignment: he had to find out "Why," "Why now," and "What's it worth." Otherwise no demo.

In other words, no compelling reason to buy...No demo.

So Rick took a risk, and is rapidly moving to a fully-paid trial implementation.

Sure, long-term objectives and plans still matter, but I've been getting more and more inquiries focused on "what to do now." Entrepreneurs and executives alike are demanding help on how to improve revenues and profits right away.

How do you make the quickest difference? Focus the bulk of your energy on revenue generation. In other words, sales! And don't do it the same old way either, because -- as you may have noticed -- it isn't working that well.

Here are five ways for your sales force to bring in more business in short order. There are no magic bullets, but just last week I taught one of these techniques to a client (#2) and he used it to close a deal the following day! Use one or use them all. Each technique will have its own effect, and each will multiply the power of the others.

1. Sell return on investment, and sell it to the CFO.

Sales people are complaining that while the pipeline may be full, the deals are taking too long to close. Perhaps that's why the pipe is so full! What are the reasons for this? Companies have money, and in many cases they have needs. But many people are so scared THEIR customers aren't going to buy THEIR wares, they are loath to spend any money themselves. The result? They are only willing to spend money when they absolutely see near-term financial payback, and the CFO is killing many deals.

The solution? Sell the return on investment. Sell the payback. And sell it to the CFO. Arm your salespeople with two things: A series of case studies that document the returns from using your product, and a well-defined ROI process worksheet. Work with the CFO to build the ROI case so that he or she owns it. This is the only way they come to believe it. Make it their idea and instead of killing your deal, they will help you close it.

2. Forget USP. Determine your Usage Cases

Instead of focusing on why your product is the latest and greatest, clarify the ways in which potential customers will use your product to solve specific problems and produce tangible results. Then, instead of touting the "benefits" of your product--which often fall on deaf ears, anyway--engage your prospects in conversations about what costly and quantifiable problems they now have, and how they might use your product or service to alleviate those.

And, as sales guru Mike Bosworth says, don't tell them your offering IS the solution. You're a sales "guy" and they won't believe you. Instead, ask them if your possible solution might help them. If they believe it does, they have accepted your solution as truth. Then get them to tell you, in real dollar terms, what fixing that problem is worth.

3. Increase Sales Training. Use the 10% solution.

But don't expect any one salesperson--even your superstars--to be 100% at every part of your sales process. They almost never are. But there is a way you can raise the level of every person in your sales organization—immediately.

Use this process adopted from W. Edwards Demming's principle of optimization. Break your sales process into as many discrete--but meaningful--steps as you can.. Cold calling. Letter writing. Setting appointments. Identifying pain. Writing proposals. Presenting. And so on. Find out who in your organization excels at each step, and have those reps explain their methods and mindset to the rest of your sales force. Do all the steps at once in a marathon session, or one step at a time. Either way, the results will be amazing.

4. Use the 80/20 Rule. And get rid of the bottom 20.

There's no room in today's world for mediocre producers. Hold each member of your team accountable for reaching two kinds of performance benchmarks: results measurements, which include not only revenue, but perhaps new accounts and repeat business, and action measurements, which might include prospecting calls, appointments, and new contacts.

Not every sales person will be a superstar, but every one should pay their own way--and then some. Salespeople who aren't producing not only cost you money, they drag down the performance of your whole organization. You may not pay them very much, but why pay them anything? I suggest you do both yourself and them a favor, and let them go. Don't worry about having an empty desk: that warm chair was an expense your company doesn't need.

If you feel it isn't fair to "dump" them, or if your sales cycle is too long to measure short-term revenue results, give the problem reps a 30-day plan to increase their level of activity in specific ways. That's long enough to see an improvement if there's going to be one.

5. Track your results and work harder

Most entrepreneurial sales organizations fail to analyze their efforts. They have no idea how much effort--or money--it takes to create a new customer. The only indication they have of whether salespeople are "doing enough" is based on the revenue numbers. The answer? Track both activity and results, and use the statistics your garner to quickly raise performance. Break your sales process into a series of meaningful steps, counting each time a rep completes one. Calculate averages and set a benchmark. And while you're at it, analyze the percentage of deals that close whenever you complete that step. That knowledge can dramatically improve your sales forecasts.

Once you establish benchmarks--this one's a no-brainer--RAISE THE BAR. Yes, that's right, because the fact is, revenue isn't coming in fast enough. Do everything discussed above to improve your sales effectiveness--then do more of it. Just working smarter isn't going to cut it. You're going to have to work harder as well. And anyone who doesn't want to? See number 4 above.

I've developed a unique Sales Audit Process based on the work of W. Edwards Demming. This program is guaranteed to produce an immediate 10-25% improvement in your company's sales, or more. If you'd like to find out more about how you can increase sales right away, call me at 858-951-3055, or visit http://www.paullemberg.com/contact.html and send an email with details about your company's sales situation.

5 Keys to Building a Dynamic Self-Management Sales System

2010-01-13T11:55:00.000-08:00

1) Identify Your Essential Competencies and Performance Metrics

If I asked you to list all the essential competencies that YOU are in control of - the ones that are absolutely critical for you to be successful in your sales position…could you do it?

For example…

Essential Competency or not?

" Converting conversations to appointments? (yes it is)
" What about filling out paperwork? No! (That's a related task)
" What about closing ratio? (Sure it is.)
" Degree of success in turning a first appointment into an opportunity? (absolutely)

Get the picture?

Now, if you truly want to adopt a self-management system that will work FOR you - not against you, you first have to "access" what is an essential competency and what's merely a related competency.

To do this, sit down and list any sales metrics and performance numbers inter-related to your competency numbers and your desired revenue results. (Hint: "Sales Cycle" and "Average Revenue" per sale are two.)

2) Diagnose Your Business on a Single Sheet of Paper

If I ran into you on a train or in an elevator, would you be prepared to tell me what you do (and how it benefits me or those I know) - in under 1 minute…

That's called your 30-second commercial. Most people don't have one, yet everybody needs one.

One way to understand more of the obvious benefits your products and services bring to the table is to start to view and diagnose your business more scientifically. You will also see how the numbers work and which areas are most important to your short and long-term success.

Ask yourself…What happens if your closing ratio reduces by 30% and your average revenue per sale increases by $2500? How does that affect your desired results?

Write your competency measurements and sales metrics on a sheet of paper. Calculate ratios in line with competencies and average numbers in line with your sales metrics. Assign your revenue object or quota. Play with the numbers and ratios to see how they are inter-related and how they affect each other.

3) Calculate your 'Magic Number'

"Not setting enough new appointments on a routine basis" is like a malignant cancerous growth slowly eating away at the heart of most sales organizations - - Jeff Hardesty.

The reason for this is because most of us do not identify how many new appointments are needed on a weekly basis based on individual competency numbers and performance metrics.

That's like diagnosing with blindfolds on.

Every one is different; we all have a 'Magic Number'. And it's personal to only you. If you routinely achieve it, you will routinely meet your desired results. Since it is a dynamic number that changes from week to week, it's important to understand how it is inter-related with other competency ratios, performance metrics and desired revenue results.

It's important to include your 'Magic Number' in your self-management system.

4) Train to the 'Napkin Rule'

The 'Napkin Rule' simple means, putting aside all those sales automation systems for 30 days and keep track of your essential competency and performance metrics on a single napkin.

Compute updates daily. Store the napkin in your pocket. When the napkin fills up, transfer it to a legal pad to show month to date. Have nothing else on the legal pad except your essential competency ratios and sales performance metrics. After 30 business days, transpose the legal pad metrics to your favorite computer software spreadsheet, and track it for 90 days.

This simple but powerful "Napkin Rule" will help you become the CEO of your business.

5) Run Your Numbers, Don't Run after Quota

Concentrate on your numbers NOT your quota so you can diagnose performance trends before a revenue crisis. Then you have the power to institute strategies and tactics for immediate recovery.

Here's why.

Reaching and exceeding sales quotas consistently has very little to do with product, pricing and competition. But it has everything to do with 'Process'.

Identify the core competencies that are necessary to be successful in your sales routine. Then train to Powerful Routines to increase your ratios of effectiveness. Document these meaningful business metrics and review them weekly. Build a simple but dynamic self-management system and outperform your peers and competition while assuring your revenue success.

Advertise the Smart Way

2010-01-11T20:24:00.000-08:00

If you have your own web site and want to get the word out on your products or services, there are a few things to do in order to advertise the smart way. No matter what size business or product that you are selling, you can draw lots of traffic to your site by advertising correctly.

Many web developers throw money around without doing the proper research and analysis on who their customers really are. Before you throw money around make sure that you have put plenty of thought and analysis into which ways are the best way to advertise your product. Here are a few tips.

Make sure you know who your customers are. A lot of web developers place their advertisements on the wrong types of web sites, which bring them little if any traffic. If you decide to use techniques such as email and popup advertisements, be forewarned that these types of advertising are considered nuisances to many customers. Many advertisers make the common mistake of advertising in one big shot instead of growing a market and following trends. So the next time you commit to an advertising campaign, make sure that you are advertising the smart way.

Acquire New Business

2010-01-11T18:01:00.000-08:00

A major part of keeping profitable and growing your business is maintaining a focus on business development. Even when you've got the right mix of work, clients and employees you should be looking for new opportunities. You could establish a process to do this whilst ensuring your existing customers don't get neglected. The process helps you manage new business opportunities in a cost- and time-effective manner.

Generate leads

Identify the types of companies you want to work with and a realistic number of companies you want to target over a given period of time. For example: an accountant with experience in the marketing industry might decide to target five opportunities per month focussed on marketing consultancies.

Finding potential clients and identifying new opportunities can be done through networking events, tenders listed in newspapers and industry magazines and headlines in newspapers about new projects and industry seminars. Keep an eye on your industry and stay aware of new developments.

Track the companies you approach in a database ( you could use Microsoft Excel or Access). Tracking should cover the obvious things (company contact details etc) as well as details of what was discussed, potential works, actions and more.

Qualify the leads

Once you have a list of identified companies you must review to ensure they are realistic opportunities. Some areas to think about include:

• Do you have the right contacts to get started?

• Do you have the right services to offer them?

• How can their website help you understand them better?

• Do you have any conflicts of interest in pursuing this company?

• Does this client have growth potential or would it be a quick job?

• Who makes the decisions? How can you reach them?

3. Raise your business profile

By raising your company profile (no matter how small you are) you'll be able to generate new business with less effort. As a leader in the industry new business will come to you. There are many ways to raise your profile; you could try sponsoring events, adverts and gaining media coverage. The size, location and target market of your business this will dictate what medium to use and the areas to cover.

4. Show them what you're made of

Start to reach your qualified opportunities by showcasing your company's products. Send them a brochure or a copy of any newsletters you produce and invite them to join; show off examples of your work; highlight relevant media articles.

Develop standard template letters in Word to send to potential clients to accompany your credentials/brochures. Ensure you link to your database (Excel, Access or Outlook) when merging the letters and envelopes to ensure you don't have to re-enter details.

There is no specified time for this courting so be patient. It could be six months before anything comes to fruition.

5. Set a meeting time

So you're in the door. Now you need to sell yourself. Tailor the meeting to suit the way you operate as a business. It could be a formal PowerPoint presentation or a discussion over coffee. You may have no choice for the style of the meeting but make sure you are comfortable and well prepared. During the meeting be sure to demonstrate the knowledge you have developed in the previous stages.

6. Follow up

You've presented your capabilities and ideas. Don't stop there. Follow up is essential. This is a major part of the process and should be taken as seriously as the other steps. You'll probably be able to build on ideas from the meeting, or you might find an interesting/relevant article or statistics you could send to re-open discussion. Even if you don't have anything to send, thank them for the opportunity.

Accounting and Accountancy

2010-01-11T15:17:00.000-08:00

Oftentimes when I meet someone for the second or third time, they say, “aren’t you in accounting?” While I am into accounting, which is the methodology and measuring aspect of my work, the profession as a whole is better labeled as ‘accountancy’.

Accountancy is the profession and accounting it the methods by which accountants measure, track and report on financial information so that resource allocation decisions can be made by, well, whoever the decision makers are.

For a small business owner’s personal finances, as an example, I may be measuring the finances of a few people (the family), and reporting the necessary information to the small business owner. In this situation, the decision maker is the small business owner and his decisions involve deciding how much money he has to put toward family necessities.

Generally speaking, there are two main types of accounting. There is financial accounting and there is auditing. Financial accounting typically involves processing of financial information about a business operation where information is recorded, organized, summarized, interpreted and finally communicated.

Auditing, on the other hand, is there process that an independent auditor examines accounting records and financial statements so that he or she can express a professional opinion about the financial records and answer questions about projections.

At the heart of accountancy lies the need to take stock of the day to day state of various sales and expenses. In the modern world when many contracts are partially fulfilled at varying times, bookkeeping is the only way to know where you and your business stand in the greater scheme of things.

If you operate your own small business, you may be able to do just fine with some accounting software. Take a look around for some flowchart templates. These can make monthly financial recording and reporting, dare I say it, fun. Simply enter in the various types of income and expenses, then each subsection updates the appropriate fields. Before you know it you’ve got proof that all bills have been allotted for and you’ve got your bottom line.

If you find you can manage your business finances on your own, then, by all means, stick with the system that you know works for you. If, however, you start running into complications that make it hard for you to see where discrepancies are coming from, it may be time to enlist the services of a professional accountant.
memory bus is also called an address bus or front side bus and both busses are high speed digital superhighways. Access methods and speed are two of the fundamental technical differences between memory and mass storage devices. All memory sizes and storage capacities will inevitably be exceeded with advances in technology over time.

Cache memory is a special type of internal memory used by many central processing units to increase their performance or throughput. Some of the information in the main memory is duplicated in the cache memory, which is slightly slower but of much greater capacity than the processor registers, and faster but much smaller than main memory. Multi level cache memory is also commonly used. Primary cache is the smallest, fastest and closest to the processing device. Secondary cache is larger and slower, but still faster and much smaller than main memory.

Semiconductor memory uses semiconductor based integrated circuits to store information. A semiconductor memory chip may contain millions of tiny transistors or capacitors. Both volatile and non volatile forms of semiconductor memory exist. In modern computers, primary storage almost exclusively consists of dynamic volatile semiconductor memory or dynamic random access memory. Since the turn of the century, a type of non volatile semiconductor memory known as flash memory has steadily gained share as offline storage for home computers. Non volatile semiconductor memory is also used for secondary storage in various advanced electronic devices and specialized computers.

Accept Checks with Confidence with a Check Reader

2010-01-11T13:34:00.000-08:00

Even though a lot of people seem to be using credit cards exclusively for incidental purchases these days, the truth is checks are still a preferred method of payment for a lot of people.

It doesn't make sense not to accept checks, since most people will expect to have that option, but there are certainly some things to worry about when you do accept checks. There's always the danger that someone has stolen the checks from their rightful owner or that they just don't have the money to pay for what they're writing the check for.

There will always be some risk involved in accepting checks, but these days technology makes your life a little easier with an invention known as a check reader.

A check reader is basically a scanner that the check is fed into. It reads the check and automatically debits the check writer's account at the time of purchase.

The money is deposited into your account within 24 hours -- you don't even have to drive to the bank and physically deposit the check.

Using a check reader means you'll know before the customer leaves the store if he or she has written a bad check. You'll also get your payment a lot more quickly than if you used the traditional method of accepting a check, depositing it into your account and waiting for it to clear.

A check reader can take a lot of the guesswork out of accepting checks and will make you feel more secure when accepting checks for high-dollar items. Posting a sign that you have a check reader will make customers aware of the system and prevent people from writing bad checks in the first place.

Check readers are commonly available from the same companies that provide payment processing for credit cards and merchant accounts. Some companies even provide this equipment for free to people who are interested in using it.

You'll no longer have to limit yourself to only accepting checks from the local area in case you have to try to track someone down who wrote a hot check. The reader will do all the work for you and tell you in a matter of seconds if the payment has gone through, regardless of where the customer's bank is located.

There's no reason not to get a check reader. You'll get paid faster and know immediately if someone is writing a bad check. At the end of the day, you'll know that the money you made today is going to be in you account tomorrow. What could be better?

A Thriving Business - Heavy Transport

2010-01-11T11:49:00.000-08:00

Heavy transport refers to moving heavy material from place to another. Material movers are the people who perform such transportation. These heavy transport workers need special training if they are to work with chemicals, toxic material or specialized machinery. Physical training is required where extreme physical exertion is required. Heavy transport workers require a good sense of balance. They must possess the ability to read, understand and judge. Possessing basic arithmetic skills is also an integral part of this business. Many employers allow experienced workers to qualify as a trainee or a supervisor.

Category of Heavy Transport Workers
Workers in the heavy transport industry may be categorized into two groups: the laborers and the operators. The laborers work manually while the operators handle machinery and other equipments. These are the industrial truck and tractor operators, crane and tower operators; dredge operators, underground mining loading machine operators, pump operators and many others.

According to their designation, these workers perform their duties. Like the truck, tank and ship loaders work for loading and unloading material at the dock. The shuttle car operators are responsible for the running of electric or diesel cars in the underground mines. Machine feeders are responsible for oiling and maintaining machinery. Wellhead pump operators take care of smooth flow of gas or oil from power pumps and auxiliary equipment. Similarly, all types of workers strive to do their particular assigned jobs. They are, thus known according to the work they perform.

Heavy Transport: Nature of Work
Heavy transport work is repetitive in nature. It may seem monotonous to workers. Therefore, shifting the duty time seems an appropriate option. Workers generally put in eight hours shifts and some times even longer. Many factories have round-the-clock shifts. Workers are hence required to do night shifts as well. The working conditions of heavy transport workers are at par with any other profession, when it comes to the hours put in.

Heavy transport is a thriving business. It provides employment to large number of people. It is on this business that a large number of big enterprises and factories depend.

A Simple Strategy to Increase Profits

2010-01-11T08:59:00.000-08:00

In today’s competitive business environment it is essential to find ways to reduce costs and increase revenues while keeping productivity and quality high. One of the best ways to achieve this is through hiring and retention of outstanding employees.

Far too often hiring managers rush through the hiring process due to being reactive rather than proactive when filling positions. With some preplanning in the hiring process and implementation of sound strategies once people join your organization, you will lower the cost of doing business by considerable amounts.

As you prepare to hire consider the following:

• What type of person are you looking for?
• What are the values that drive your company?
• How difficult is the job you are filling?
• Do you have anyone internally who can do the job?
• How long will it take to find the right person for the position?
• What are you willing to negotiate with the potential candidate?

In looking for potential candidates you may want to try more than the traditional employee search. Tap into your network of professional connections. Some of your best candidates may be working for your competitors. Be careful about hiring someone just because they are a friend or family member. Not that friends and family members don’t make good employees - often they can be fantastic. And yet, if you are hiring them only because they are a friend or family member, you are setting yourself up for some big problems. With the wrong choice morale with other employees can go down. With the right choice it is just as likely to go up.

Think through the compensation package. Are the wages fair for the job, industry and market? Make sure your benefit package is competitive for your industry. Find out what other companies are offering as far as compensation and consider matching or beating their offerings.

There are occasions when someone may take a position without thinking through income, benefits or fit. Once they have gotten settled in and are feeling comfortable with the position and the company, they may realize the compensation and the job is not all it could be. That can cause some discontent on their part. To avoid this, do your homework.

Another key to keeping good employees is to make sure they are treated with respect, dignity and appreciation. This may seem like common sense and yet, it often doesn’t happen. I consult with various types of organizations employee retention and how to gain more commitment from the staff. I often will meet individually, in private, with a cross section of the staff. I spend at least an hour with each employee in a confidential meeting to find out their view of the company. Inevitably, the areas that are most lacking for the employee to be fully satisfied are communication and appreciation.

Once the area of discontent has been identified I design programs for the company in which to address the problems. What is amazing is the problem is often on the way to being solved by virtue of the fact the organization has brought me in. A common comment is, “Finally, someone is listening to me.”

Often, a company’s problems can be lessened with some good coaching and training of management. It is amazing how many managers and supervisors were put into their position without any training in interpersonal skills, management and supervisory skills, and how to communicate effectively. Nine times out of ten the people who need the most training are the ones who think they need it the least. And, they are often the biggest obstacle to the success of a company.

In order to stay competitive on all fronts you must keep your entire team on the leading edge. By doing so you will be in business for years to come with a happy, dedicated and productive team. And that will equal profits.

A Podium is No Place for a Projector

2010-01-10T22:38:00.000-08:00

Remember the days when presentations before an audience consisted of boring lectures told from a podium while someone clicked slides or moved transparencies? The world has changed. Both in education and business, presentations are now more visual, more interesting, more dynamic.

And the furniture industry has jumped on board. No longer do you need a second person to run that Power Point projector for you. No more turning around to make sure he/she switched the slides at the right time. You can do it all yourself with a projector cart—something no university lecture hall, conference center, or meeting room should be without.

So what exactly is a projector cart? We found an excellently designed projector cart from Versa Tables, called the Projector Fusion Laptop Cart. Available in two colors and for under $300, the Projector Fusion Laptop Cart provides four distinct surfaces designed to help you keep your presentation organized. The first is an adjustable, pole-mounted laptop tray with a raised lip and locking mechanism to keep your laptop securely where it should be—at your fingertips! Adjust the laptop for your most comfortable standing or seated height and control the laptop yourself. In addition, the cart also offers three more adjustable platforms constructed from high-density wood; ideal for holding a projector, printed handouts, visual aids, and more. The frame is made of scratch-resistant steel and the entire cart is mounted on liquid-ease rolling casters. The casters also lock, keeping your cart in place even on uneven surfaces.

Base storage trays and cable management units can be added for a nominal charge giving you even more storage space and easier cable organization. The carts fit easily into a closet or storage space when not in use. The platforms can be added or removed as needed and adjust independently, giving the user the option to customize according to the needs of his/her presentation. The platforms, as well as the laptop tray, also rotate around the core pole, so they're perfect for right-handers or left-handers.

Show the speakers you invite to your venue that you care about their comfort by providing them with everything they need to give a successful presentation.
Podiums are great for debates, but with today's business and education trends leaning toward the visual, a laptop fusion cart is perfect for any speaker. They're also ideal for trade shows, medical offices, and retail stores.
Several manufacturers of computer furniture are now offering similar products, but Versa Tables' Projector Laptop Fusion Cart carries Versa's no-hassle, lifetime warranty, and ships for absolutely free to any customer in the contiguous United States. Versa also offers a quantity discount on this product—like all of their products—which is a great bonus for institutions like hotels, conference centers and universities which need to furnish multiple lecture halls or meeting rooms.
Available in Warm Gray or Black River, the colors are pleasing to the eye. An additional pole-mounted monitor arm can be added for a fee, but the cart is truly functional without it.

A Guide To Neon Signs

2010-01-10T20:15:00.000-08:00

If you are going to take a walk at night, notice the luminescent, glowing signs that are gracing the façade of many buildings. These are called neon signs.

The first neon sign appeared in France in 1910 at Grand Palais. The display caught people’s attention – in fact, the effect was so bright and catchy that other countries took notice. As a result, demands to create neon signs for commercial use have grown since the 50’s and are still very much in demand.

Neon signs are created out of brightly colored gas discharge lamps filled with a certain gas. These are actually glass tubes bent and twisted to form different designs and letters. The light uses a high voltage but very low volume of amperage. To make the gas inside the tube glow with light, you will need to increase the electrical pressure from your wall outlet so that enough supply of current is transported.

One known advantage of neon signs is that electrical cost is relatively low. The typical lifespan of neon signs range from 7 to 10 years but there are some that have been known to last 20 years.

If you are wondering why those neon signs vary in colors, it is because these signs are created in three different ways using three different gases. Some use inert gas, for example. This is the combination of neon and argon/mercury gases. While neon gas glows in reddish-orange color, argon and mercury lights give off a light blue color. Some neon light also use fluorescent powders. Such lights use combinations of different gases to filter out different colors from the light spectrum. Some neon lights, on the other hand, use colored glass. This is the oldest method and the most expensive among the three. They provide the most vivid colors, but they are not as bright as other neon lights.

7 Benefits Of Mobile Document Shredding Services

2010-01-10T18:51:00.000-08:00

Mobile document shredding service companies come to the physical location of your business and take care document disposal for you. These services typically use a medium size truck with the shedding device built into the back of the vehicle. This is so the shredder can go to the company location and shred all the documents on site before taking the particles to the dumping area for final disposal.

What are the benefits of mobile shredding service?

* Containers: Many shredding companies furnish nice looking steel locking containers for use in your office. These containers can be emptied on schedule, or whenever they get full. Many mobile shredding companies offer flexible scheduling.

* Certification: You may get a “Certificate of Destruction”. While this certificate doesn’t totally absolve the business of responsibility for the document security, it does help.

* Ease Of Use: Why risk transporting tons of documents off-site when you can witness the document destruction in the back of the truck right outside your office!

* Unrecoverable: The professional process used by mobile shredding companies makes it impossible to reconstruct documents.

* Affordable: It can cost only pennies per pound to shred business documents.

* Verified Firsthand: Company personnel can witness the shredding is done on-site. You don’t have to entrust the drivers and a chain of people to destroy your documents…you can witness it firsthand without leaving your office parking lot!

* Less time consuming: Shredding these documents by hand would waste valuable employee-hours. With a mobile shredding service, huge piles of documents can be shredded in a fraction of the time.

Mobile shredding is probably the easiest, most secure, and most rest freeway of disposing of documents.

Some of the service options frequently offered by mobile document shredding companies:

Ongoing scheduled service
One time bulk shredding.
Onsite shredding
Offsite plant based shredding
One time purges
Electronic destruction / Recycling
Daily, weekly, monthly, and semimonthly (or, biweekly) schedule

For a company, it can be a good investment to hire a mobile shredder to come to the site regularly and dispose of sensitive documents. After all it can cost a lot of money to warehouse this type of data. Instead of documents sitting around collecting dust, a mobile shredder can make mincemeat of them with minimum hassle and clear the clutter.

You can find more information about certified mobile document shredding and paper shredding in general at our website.

5 Key Elements of a Successful Home Based Business

2010-01-10T16:45:00.000-08:00

Who wouldn't want to work from home? You can make your own hours, forget ever having to commute, and never have to answer to a boss. Plus, as a home based business owner, you have the potential to earn exponentially more than you ever will by punching a time clock.

Yet, there are so many home based business opportunities available that it's often difficult to choose the one that is a good fit for you and that has the income potential that you need. To help you make your choice, here are five key elements to look for in a home based business.

1. Go with Network Marketing

While it's true that not everyone succeeds at network marketing, the principles behind it are sound. After all, network marketing is essentially using and selling products through word of mouth. This approach allows you to reach out to an ever-growing number of people and reap the financial rewards of building your own downline. Because network marketing cuts out the middleman, your earning potential increases. In the process, you create the potential for residual income while enjoying low overhead and the opportunity to work when and where you want. Furthermore, when you take advantage of Internet-based network marketing, you are not bound by geographic boundaries; your customers and downline can reach global proportions.

2. Choose a Company that Offers Multiple Products

Every day, you use dozens of products. Some home based business opportunities focus on one product, while others focus on many. When you do the math, it's easy to see why it's preferable to choose a company that allows you to become a member and have access to a wide variety of products, as well as to sell those products.

3. Find Cutting Edge Products to Use and Sell

Few people need more candles, kitchenware, or knick-knacks. What they really need and want are information and mobile technology products, such as DSL, VOIP, and broadband. Baby boomers in particular are looking for values in discount shopping, travel, and professional services such as legal services and health services. Companies and entrepreneurs are always on the lookout for cutting edge business software, conference calling, SEO services, marketing products, and video production services.

4. Look for a Solid Compensation Plan

Compensation plans vary from company to company, so be sure to find one that gives you the greatest earning potential. A single paid matrix is an excellent approach, as is a 3 x 9 monthly matrix commission.

5. Gain Access to Business Building Tools

One of the premises of network marketing is that you don't need to reinvent the wheel; the infrastructure for a successful business model already exists. When reviewing home based business opportunities, especially those that are Internet based, find one that allows you to grow your business through duplication, so that you can immediately get up and running. The company you work with should also have a support system that includes mechanisms to capture leads, create ads, and develop solid marketing strategies. Moreover, there should be a sense of community, camaraderie, and mutual support.

Launching your own home based business can not only lead you to a debt free life, but can also enable you to travel the path of true financial freedom.

Using SWOT Analysis To Improve Your Business

2010-01-08T17:36:00.000-08:00

Analyzing the strengths, weaknesses, opportunities, and threats (SWOT) of a business is a well-established tool that is widely used by academics, consultants, and advisors. Although it is a simple concept, business owners often struggle when trying to use it because it is so broad. It is difficult to determine where to start, what questions to ask, and where to focus. The obvious problems get attention while many other important issues get overlooked. SWOT analysis is a great tool, but its effective use requires additional structure.

Strengths and weaknesses relate to internal factors, while opportunities and threats cover external ones. The internal factors can be divided into five categories: management, workforce, sales and marketing, operations, and financial. The external factors are also divided into five categories: threat of new entrants, bargaining power of suppliers, bargaining power of customers, threat of rivalry from competitors, and threat of substitution.

To approach the analysis in a structured way, prepare a checklist using the categories mentioned above. Identify factors within each category that are important to your business. Under management for example, a major weakness for virtually every small business is relying too heavily on the owner. What would happen to the business if something happened to the owner? In the workforce category a factor could be employee turnover and the availability of new hires. The threat of new entrants might include the possibility of a big box retailer opening near your business. The bargaining power of suppliers and customers categories should consider the possibility of losing a major supplier or customer. Come up with several factors for each category to complete the checklist. It is important that you do not try to rate or solve each issue as you identify them. If you do, you will get bogged down on each factor and never complete the analysis.

Once the checklist is complete, you should rate each factor based on its importance to your business. Use an alphabetical scale from A to E, where A = very important, B = important, C = some importance, D = little importance, and E = not important. Next rate each factor based on proficiency (internal) or vulnerability (external). Use a numerical scale from 1 to 5, where 1 = very proficient or not vulnerable, 2 = proficient or little vulnerability, 3 = average proficiency or some vulnerability, 4 = poor proficiency or vulnerable, and 5 = deficient or very vulnerable.

The factors with the lowest letter and highest number (A5) are the biggest weaknesses or threats. The ones with the lowest letter and lowest number (A1) are the biggest strengths or opportunities.

Using this structured approach makes a SWOT analysis possible and practical for any small business. To make this process worthwhile you must use this information to take action. Work to fix the worst problems first, prepare for the biggest risks, take advantage of the best opportunities, and build your secondary strengths.

Tips to Improve Customer Loyalty

2010-01-08T16:14:00.000-08:00

Statistics show that, on average, U.S. companies lose half of their customers every five years.

It's true that acquiring new customers will help your business grow. However, your current customers are the lifeblood of your business and keeping them happy should be your highest priority. Here are a few ways to make sure your customers keep coming back.

* Understand lost customers. Many business owners mistakenly believe that customers choose to patronize other companies solely because of better prices. While pricing can be a concern, customers often head to the competition when they don't feel valued.

A change of lifestyle may have also created a situation where customers no longer need your product. By staying in touch with their needs, you might be able to adjust your offering to continue servicing them.

* Know your customer's top priority. Maybe it's reliability or speed or cost. Your company should know your clientele's No. 1 priority and consistently deliver it. Remember, customers' desires change frequently, so ask yourself this question every six months.

* Acknowledge the lifetime value of customers. The lifetime value of your customers is the income you would gain if a customer stayed with you as long as they could possibly buy your product or service.

For example, the lifetime value of a customer employing a financial adviser could be several decades and could span several generations. Treat the parents well and you could win the children's business.

* Create a positive first impression. Good first impressions tend to generate loyal customers, and you get only one chance to make a positive first impression. Appearance is important. The exterior and interior of your business should be neat and clean.

* Listen to the customer. Employees should listen actively to customers. Reassure your customers that you genuinely want to help them. Customers will judge your business based on the politeness, empathy, effort and honesty of your staff.

* Address and resolve complaints quickly and effectively. Inevitably, your employees will encounter unsatisfied customers. Whether they're returning an item or changing a service, customers expect a fair policy. If you cannot offer a resolution immediately, let the customer know when he or she can expect an answer.

True Information Management: Far More Than Technical Automation Support

2010-01-08T15:02:00.000-08:00

Across the Regular army, the term Selective information Management connotes different substance. In a garrison environment, a unit or section selective information direction military officer is typically that computer smart individual responsible for keeping their respective automation assets properly configured and Entropy Assurance Vulnerability Alert compliant in accordance with Directorate of Info Management policy. In a tactical setting, specifically at division and higher echelons wherever command and control and C2 entropy systems are the centerpiece of trading operations, the IM mission takes on a much More encompassing and critical function.

A office that has the INTERNATIONAL MARITIME ORGANIZATION often focused solely on technical foul control and configuration of C2 systems and systems data moving across networks and throughout tactical operation centers.

Effective and true up IM, however, focuses Thomas More on tailoring, filtering and fusing C2 data for relevancy and significance to ultimately drive the commander's decision cycle. Breaking out of the technological automator mold to info analyst to achieve dead on target IM is an inherent dilemma facing many IMOs nowadays.

As the Signaling Corps postures itself towards the Future Force and Joint Operations, off-the-shelf technology is increasingly user-owned and operated and providing vast amounts of data, taking possession of, and focusing on the straight IM mission volition prove vital to keeping the Sign Regiment relevant. Continued from page 1. On larger scale the I Corps staff is acting as a JFLCC or CTF, the is caught up playing the conventional albeit misguided part of ' automator', particularly in getting center systems set-up and configured. This purpose is often extended throughout the initial phase of an operation until C2 systems and procedures are synchronized.

The IM plan and established procedures dictate flow during this early stage. Once a routine struggle rhythm is in place, the is usually afforded time to focus on real IM and deliberate tailoring of for and signification. At this point, IM is done in a deliberate, proactive manner versus a reactionary mode during initial setup at the conflict major or chief's request. During his tenure as Chief of Bespeak, MG(R) Pat Cavanaugh accurately captured the take exception still facing Data Managers and the Betoken Regiment now: "The manager testament be faced with the daily dispute of determining just how his organization receives, manages, processes, protects and disseminates.

The manager, then, wish need to be well-versed in operating and employing systems and communications networks, and equally literate in the art and science of maneuver warfare." If you canvass possible candidates for this position, it's quite clear the Indicate Regiment is best positioned to take on the - use. Our skills, training and experience cause us to cross all lines of handling: from the backbone infrastructure itself, to the local area networks in TOCs, to the systems and databases that power our Ground forces fight-command systems.

We need step up to the plate and take responsibility for IM. As the moves from division and corps formations toward the Future Force of UEx/ UEy design, technology bequeath continually enable faster and Sir Thomas More voluminous TOC flow to commanders.

Tailoring this for and understanding to achieve on-key IM is an , training and staffing gainsay for the Point Corps, and a focal for managers of and tomorrow. far to a greater extent than automation support.

MAJ Norris is currently assigned as the I Corps G3 officeholder. His recent assignments include signal ship's officer in the Stryker Brigade Coordination Cell at Fort Lewis, Wash. and 8th G6 plans policeman at Yongsan, Korea. Norris is a 1990 graduate of Virginia Commonwealth University with a degree in journalism and 1997 graduate of Old Dominion University with a master's degree in applied linguistics.

Steps To Take To Accommodate The Employee With Cumulative Trauma Disorders

2010-01-08T13:29:00.000-08:00

The United States Department of Labor has developed a set of guidelines that can assist the owner, operator or manager of a business in accommodating in the workplace an employee that suffers from cumulative trauma disorders of CTDs. More information on these guidelines can be found through the Occupational Safety and Health Administration (OSHA) which is an agency of the U.S. Department of Labor. OSHA maintains an Internet website at http://www.osha.gov.

When it comes to workplace accommodation, there are different types of problems associated with CTDs. For example, one of the areas that people with CTDs suffer involves fatigue and weakness. Accommodations for this type of condition, according to the U.S. Department of Labor, include:

-Reduce or eliminate physical exertion and workplace stress

-Schedule periodic rest breaks away from the assigned workstation

-Provide for the employee a more flexible work schedule and a more flexible use of leave time

-Allow or permit the employee to work from home

Some employees have found that they are suffering from fine motor impairment as the result of CTDs. The U.S. Department of Labor through OSHA has suggested accommodations for this type of impairment, including:

-Implement ergonomic workplace and workstation design

-Provide alternative telephone and computer access for the employee

-Provide arm supports

-Provide grip and writing aids

-Provide a book holder and a page turner

-Provide the employee with a note taker

-Provide ergonomic workplace tools and other ergonomic adaptations

Finally, there are people afflicted with CTDs that suffer from gross motor impairment. Once again, the U.S. Department of Labor through OSHA has recommendations for accommodating people in the workplace that suffer from CTDS. These accommodations include:

-Modify the workplace to make it more readily accessible to the employee

-Provide more accessible parking for the employee

-Provide a more accessible entrance to the workplace for the employee

-Install automatic door openers for use by the employee

-Modify the workstation to make to more ergonomic and accessible for the employee

-Make sure that equipment and materials used by the employee are accessible readily

-Move the employees workstation closer to other areas which the employee accesses regularly

-Provide the afflicted employee with carts and related lifting and moving devices

Again, this information can be accessed in greater detail through the U.S. Department of Labor and OSHA at http://www.osha.gov.

Successful Organizational Leadership: Effective Execution through Strategic Alignment

2010-01-08T12:17:00.000-08:00

It is an all-too-familiar scenario. Corporation X misses badly on its commitments several quarters in a row and the stock plummets. As a result, the Board loses confidence, the CEO “resigns,” and a new CEO is appointed who immediately announces a sweeping restructure of the corporation.

In the past few years, papers have been inundated with such reports. Even at corporations where top-level executives show signs of “vision” and have articulated what seems to be a sound business strategy on paper, results fall short of expectations.

We have all been there at one point or another in our careers. The leadership team spends long hours agreeing on a 3- or 5-year strategy to improve the performance of the business. Management teams work equally hard to come up with supportive annual budgets. Both teams populate long PowerPoint presentations and well-built, exhaustive spreadsheet files. Yet not much happens in terms of actual deliverables! Ambitious year-end targets are missed. Improvement curves keep being shifted to the right, until the scenario at the beginning of this article is realized. Now the process for restructure of the corporation begins.

Questions immediately arise as to why these events occur so often and include:
• What has gone wrong and why?
• Are the goals too aggressive?
• Are the visions and/or strategies inadequate?
• Are middle managers unable to execute?
• If the answer is yes to all these questions, then why is it so?

All are good questions, and many have been extensively addressed with proposals on how to find corresponding solutions. Based on my experience, however, a key element that needs to be addressed is the importance of strategic alignment.

What is strategic alignment?

Strategic alignment can be described as the linkage between the goals of the business, which quantify the progress of the implementation of the strategy towards the vision, and the goals of each of the key contributors. Key contributors include groups, divisions, business units, departments, or individual employees who have an interest in the continuation of a successful corporation.

Strategic alignment, put simply, is “everyone rowing in the same direction.” The tighter the linkage and the better the alignment, the likelihood of flawless corporate execution becomes stronger.

Strategic alignment has several advantages once implemented properly and practiced. Benefits include:
1. Allowing an efficient use of usually scarce resources,
2. Resulting in increased speed of execution, as a corollary,
3. Promoting team efforts towards common goals, and
4. Escalating employees’ motivation, giving them a keener sense of contribution to the results of their individual groups and of the corporation as a whole.

These are good results that many corporations would benefit from, but very few corporations are able to realize them. Since many corporations and their leadership teams attempt to gain strategic alignment, the question becomes what barriers must be overcome.

How can strategic alignment be implemented effectively and what are the key success factors?

The first component of a successful strategic alignment is the extensive communication necessary within the organization to understand the elements of the vision and of the key strategic directions needed. Relentless repetition by the leadership and management teams at every opportunity, including sales meetings, company meetings, and operational business reviews allow each employee to understand vividly how he/she can contribute to the overall progress. More often than not, however, these vital communication opportunities are restricted to boring presentations of high-level tables filled with data that are difficult for employees to associate with their day-to-day jobs.

The second component of a successful strategic alignment is absolutely essential to link the results of each employee’s job to the progress of the entire corporation strategy and to do it clearly and simply. This is best accomplished by using simple measures of key performances (KBMs= key business metrics, or KPMs= key performance metrics), which can be connected to the employee’s annual performance review.

One excellent example of effective strategic alignment is practiced at Thermo Electron Corporation, a leader in the field of analytical instrumentation, headquartered in Waltham, MA. Thermo Electron uses a cascading set of goals that quantitatively measure the progress of the strategic implementation. This “waterfall effect” or “goal tree” starts at the very top of the corporation and cascades down to all levels of the organization – from Corporation to Divisions; from Divisions to Business Units; from Business Units to Departments, and from Departments to Employees.

When it reaches the employee, the objectives are incorporated into her/his annual performance targets and these objectives directly support the key goals from the highest levels of the organization. This ensures both focus and alignment as the employee daily delivers on their objectives. Objectives are rolled back up the “waterfall” or “goal tree” in periodic reviews of goals at all levels in the organization.

Implementing strategic alignment is not rocket science. It requires, however, strong commitment from the top leadership and focus on relentless communication at every opportunity using simple management principles of focus, clarity and reinforcement.

In the end, effective execution of strategic alignment is a leader’s top priority and ensures that goals are met and success achieved.

Office Plants For A Healthy & Happy Workplace

2010-01-08T11:01:00.000-08:00

It is difficult to completely control the indoor climate in an office. It can easily become too hot, too cold, too dry or too damp. Furthermore, it can never be perfect for everyone: what one person finds too hot is too cold for someone else.

In addition printers, copiers, computer monitors, floor coverings, paint and wallpaper release substances into the air which affects the quality of the indoor climate.

The potential consequences of poor air quality are well known: irritated eyes, headache, skin complaints and dry membranes in the nose and mouth. This is not only unpleasant, it is also unhealthy.

Dry throat? Burning eyes? Recurrent headaches? Plants improve your working environment all year round

In winter, when the heating is running at maximum, it is the lack of moisture in the air which causes problems. Most people find a relative humidity of between 30% and 60% pleasant. But many offices do not even achieve the lower level of 30% in winter months. It is no fun indoors in the summer either. Sealed climate control systems with non-opening windows means that you cannot control the environment yourself. Even in offices with the latest climate control systems, more than a quarter of the staff are dissatisfied with the temperature or the humidity.

Yet you can easily improve the indoor climate buy using plants! Plants help create a healthy indoor climate and a happier workplace. Not only do they put water vapour back into the air, they also absorb heat and filter dust and harmful substances out of the air. Some indoor palms give off a lot of water, and sword ferns and gerberas cleanse the air of the formaldehyde released by building materials, paper and furniture. Other good air-purifying plants are the rubber plant, English ivy and date palm.

Which plants?

Different plants have different effects - some purify and some humidify the air. Plants with a high level of water consumption can increase humidity by to 15%. Recommended plant types to purify the air are: Parlour Palm, Kentia Palm, Ficus, Ivy, Boston fern, Philodendron, Spathiphyllum and Mother-in-law's Tongue. Recommended plant types to humidify the air are: Ferns like Boston fern, African Hemp, Cyperus and other grasses, Spider plant, Bamboo and Spathiphyllim

Fewer complaints & less illness

The effect of plants in the workplace has been the subject of repeated scientific investigation. Time after time the conclusion is the same: plants work! One study looked at the effect of plants on the health of staff in the radiology department of a Norwegian hospital. Once plants were placed in the department and artificial daylight was introduced, the level of health complaints amongst those studied fell noticeably. This resulted in a permanent reduction in absence due to illness from 15% to 5% within 6 months. The instances of the following complains fell by a significant percentage:

Symptom Reduction in complaints (%)
Eye irritations - 15%
Dry throat - 31%
Fatigue - 32%
Cough - 38%
Headache - 45%

More plants - less stress

The presence of plants does not just affect the indoor climate. Researchers have discovered that a view of greenery can result in a demonstrable reduction in stress within five minutes. Research in the Netherlands has shown that people who spend more than four hours a day working at a computer monitor feel better and are more productive with plants in the workplace!

The green view

A green indoor environment
Companies are increasingly willing to accept that they have a key role to play in protecting the environment and the welfare of their employees, and therefore often strive for a 'green' image. Presenting such an image starts with a healthy indoor environment. Plants at work fit perfectly within the area of company policy which nowadays is labelled ‘health management’. As an employee, you can hold your employer to account on this.

Improve your workplace

Anyone wishing to do themselves, their colleagues and their business a healthy favour will ensure that there are plants in the workplace. This guarantees a better working atmosphere, but above all a healthier climate in which to work. The benefits for employers are also substantial: less absence due to illness and better performance.

Need Help Setting Up Company?

2010-01-08T09:45:00.001-08:00

So you've written all your plans, you've got any financing you need, and you're all ready to set up your company. Uh, wait a minute... how do you do that?

The Basics.

A company is an entity, separate from you, that you need to create before you can do business. You decide what type of company it will be, you give it a name, and then you send off all the relevant papers to your government and pay any fees that need to be paid. Even for a one-person home business, it's good to form a company -- it keeps the finances apart, and means that you can sell your company to someone else if you want to. Besides, it might be a legal requirement where you live anyway.

Before you do anything else, you should send off for the forms you need to start a company -- in the US, for example, you would talk to the SBA (Small Business Administration), while in the UK you would need to get in touch with Companies House. If you're not sure, your local Chamber of Commerce or your lawyer should be able to advise you.

Types of Company.

The chances are that you will want your company to be 'limited', which means that your own liability when it comes to debts and other legal issues is limited to a certain amount, usually the amount that you invested originally. While it is possible to start an 'unlimited' company, it offers no real benefit -- it just means that you take far more legal risk.

The choice between 'private' and 'public' companies should be equally easy. A private company can be of any size, and is owned only by the people who started it. A public company, by contrast, is one that can be traded publicly, and may be listed on the stock market -- there will be a high minimum share issue requirement for this type of company that will put it well out of your reach, and formal qualifications may also be required.

So the kind of company you need is very probably a limited liability company, usually abbreviated as 'LLC'.

Legal Requirements.

Before you can start a company, there are a few legal requirements you need to fulfill. You generally need to be over 18 and otherwise permitted to enter into contracts. You must not have been disqualified from being the director of a company, and you also can't be bankrupt.

So far so simple, right? One last sticking point is that you will usually require two people to act as the directors of your company, not just one -- you might have to ask your partner or a lawyer to be another director, or to act as a 'secretary'.

Fee Time.

You're likely to be hit for lots of different fees as you go through the process of setting up your company, but none of them should be too large. There will be a company registration fee, as well as a witnessing fee and perhaps some charges for stationery. You may be able to pay extra to have your company registered more quickly.

An Alternative.

If setting up a company sounds like hard work, you'll be relieved to learn that almost all sorts of people offer comprehensive company registration services that don't even cost all that much. Expect to pay about twice as much as the standard do-it-yourself fees, but it's hardly going to break the bank anyway, and it can save you a lot of trouble both now and later on to get things done properly. If this is what you want to do, speak to a lawyer, an accountant, or even a specialised 'company formation agent'.

Your Obligations.

Finally, be aware that from the moment you set up a company, you may have some obligations placed on you. The largest of these is tax reporting, where you will be required to send in a tax report every tax year. Forgetting to deal with tax issues could land you with a fine, so make sure you understand exactly what you've signed up for. You might also be required to do things like putting a small sign with your business' name on the front of your business premises (your house), or to start writing your company registration number on business-related letters you send.

Outdoor Team Building Activities

2010-01-08T08:38:00.000-08:00

Outdoor team building activities are one enjoyable way to strengthen your company’s communication skills and cooperative working abilities, while reducing stress and taking a well-deserved break from the office. There are lots of structured activities to choose from that are both recreational and targeted towards building these essentials for successful working relationships.

Outdoor activities can take a wide variety of forms including treasure hunts, sporting events, simple games, wilderness adventures, and much more. These activities are designed to encourage critical thinking and problem solving skills, foster good communication and group interaction, and demonstrate each individual’s ability to contribute to the greater whole. In addition to the benefits you will receive as a team learning to work together toward common goals, getting out for some fresh air and exercise will almost certainly be well received.

Although certain types of outdoor activities will be more challenging than others, team building exercises tend to be designed to ensure a safe, rewarding and enjoyable experience for everyone. Activities provided by professional consultants are generally customized to suit your particular organization, and are usually flexible enough to even be moved indoors in case of bad weather. Take some time to evaluate what kinds of activities might be best enjoyed by your team, or give them a selection to choose from in order to maximize their participation in their team building experience.

The advantages of team building activities are many, and the benefits are intended to last beyond the day, to improve morale and teamwork when you return to the office as well. Getting to know one another in a different environment and enjoying some humorous and successful experiences together helps relieve tensions, builds mutual appreciation and understanding, and helps team members feel like part of a unified whole.

Team building activities can be used at any stage of an organization’s development, from providing icebreakers for new recruits, helping a new division get to know one another, or providing some much needed revitalization for your seasoned people who could use a morale boost. Your team may enjoy the experience so much that they decide to make a habit of it, and organize bowling nights, a softball team, or get a group membership at a fitness center. The possibilities are wide open.

Professional consultants who specialize in corporate organization and team building can provide many valuable and fun activities to improve your company’s productivity or enhance a specific team’s performance. Begin by browsing some of the services that are advertised online to get an idea of the many ways you can approach teambuilding. There is definitely something for everyone, and the gains are immeasurable. Make an investment in your people, and enjoy a work environment that is both more harmonious and productive.

Money In Reward And Recognition Systems

2010-01-07T21:12:00.000-08:00

The role of money as a motivator is indisputable if you don't have enough. With bills to pay and mouths to feed, most hunter/gatherers will push themselves to get enough money into the bank account to remove those troublesome worries. However, once the threshold of comfort has been reached and there is a steady flow of money coming from a job that is well understood, can money be used as a further motivator?

The answer is firmly in the realms of "it depends". It depends on the individual. Some people will always "jump for the jellybeans" because their lifestyle and their conditioning demand that they acquire the next best car, house, entertainment center or vacation. Others satisfy themselves with smaller dreams that they can achieve without being overly ambitious.

Why Reward Systems?

You will have ambitions for your business. It is important to you that you make the most of your investment both in money and in time and it is important that the people who work with you are focused on the same outcomes that drive you. A well structured reward system can accommodate everything that your people desire and can demonstrate to those who want to do better for themselves, just what it is they need to do to make it happen.

A reward system is more than pay levels, bonuses and stock options. It should encapsulate other forms of recognition for a job well done including promotion, reassignment and a range of flexible bonuses that can be selected to match the particular life-style of the individual person.

Reward systems should be based on the fundamental premise that "You get what you pay for". The old adage "If you pay peanuts, you get monkeys" could never be more true however you also don't want to bankrupt the company, so the balance can be a fine one.

The reward system also has to be responsive. People tire of stretching themselves for future promises. How many times have you heard "If you do this well I'll consider a pay rise at the next review."? If you fail to reward appropriate behavior quickly, you stand less than an even chance of getting the right result.

What is the Reward Strategy?

Like all business activities, it is important to be clear for everyone concerned how the reward system interlocks with the business mission. The Reward Strategy is designed to demonstrate how the company values its people and how the payment practices it adopts help to engage and motivate employees.

The Reward Strategy should deliver the following:

A framework within which the rewards provided by the business will operate
Clarification of the reward objectives
An outline of how reward will be managed
A link between the expressed values of the business and the methods used to manage reward

The total Reward System is, of course, much more than just pay and benefits. Employees also see value in career opportunities, personal and professional development, the management style and, coincidentally, recognition.

Nine Reasons Why Mentoring Matters to You

2010-01-07T19:37:00.000-08:00

There are many roles we play or hats we wear in our lives. We are professionals, family members, brothers, sisters, co-workers, leaders, coaches, friends, parents, and neighbors to name just a few. While you may not wear all of the hats I listed, you can likely add several more that I left out! Many of these roles are a given – we don’t have much choice of having the role – they come with being a responsible adult.

Because of these many roles, we find ourselves very busy. Many tasks and priorities find us perhaps busier now than we have ever been before!

With these two factors, many roles and little time, it may seem absurd to write an article that encourages taking on yet another role and adding another task to your over-booked calendar. But that is exactly what I am going to do. In this article I’m going to show you why, despite the competition for our time and energy, being a mentor is one of the best things you can do.

There are many reasons why being a mentor is valuable to the other person. They get the value of your expertise, knowledge, and experience. They get a chance to advance more rapidly and create greater success than they would have been able to without your insight and advice. While these are altruistic reasons, they don’t say anything about how you benefit. And while we all like to help others, sometimes we need to see what is in it for us as well.

There are benefits to you personally to spending your time and energy, sharing your expertise with others as a mentor. In fact, there are at least nine benefits that you might derive from being a mentor. These include:

You’ll develop a close relationship with your mentee. We can never have enough close relationships. And chances are the person you mentor will be someone you benefit from being around. After all, they are interested in improving themselves, care about learning, and are likely excited about the possibilities in their future. Which brings me to the second benefit…

You’ll be re-energized personally. Get around someone enthusiastic, and you naturally become more enthusiastic yourself. Some activities sap our energy while others spark it. Being a mentor is like carrying a book of matches with you. If you want to re-energize yourself to your own possibilities, be a mentor.

You’ll increase your commitment to your own career and organization. This one applies most if you are mentoring in a business situation. You can see how this would happen – as you get more enthused, you see new ways you can contribute. You see how your mentee can make a difference in the organization and this new vision will increase your commitment.

You’ll learn more by talking about and teaching things. It is funny how our brains work. When we teach something or explain something to someone else, we then understand it more clearly ourselves. As a mentor you will relive experiences, teach or share ideas. And when you do this you will learn and re-learn these concepts for yourself. Often you will find yourself “taking your own advice” to your great personal or professional benefit.

You’ll expand your impact in your organization. Not only will your personal commitment grow, but as you help others be more successful, the organization will succeed at higher levels. Think of the satisfaction you will get from knowing you are playing a part in making that happen.

You’ll enhance your self-esteem. It just feels good to help others. You will feel better about yourself and your abilities when you share your wealth of knowledge and experience with others. Your self esteem will rise because you are doing good things for someone else.

You’ll increase your skills. As you mentor others, you will become a better mentor. The skills that make you a better mentor; empathy, listening, caring, building trust (to name just a few), make you more effective in many other parts of your life. Being a mentor is actually great training in itself!

You’ll grow more confident. The culmination of many of these other benefits is that your confidence will increase. You’ll be more confident in many sorts of interpersonal relationships and conversations. You’ll know that you can have a positive impact. You’ll know that you can make a difference.

You’ll leave a legacy. Successful athletic coaches do more than grow their teams and win lots of games. The best also create a linage of coaches that leave their staff to become head coaches as well. This is an important legacy that they leave – a statement of their influence and impact. By mentoring others with care and compassion you will be adding directly to your legacy.

Take minute now to be selfish. Think about yourself as a mentor. Identify what you see as being in it for you. Envision how it will feel to give back to someone else. Then go out and become a mentor – you, along with your mentee, will be glad you did!

How To Check If Your Home Business Is Legal?

2010-01-07T18:23:00.000-08:00

If you’re going to start running a business from your home, there are various laws you need to know about. If you don’t check things out before you start, then you risk having your business shut down by the authorities.

Zoning Laws.

The chances are that the different parts of your town or city have been split into different ‘zones’. Each one of these zones has a purpose: business or residential. Since you almost certainly live in a residential area, zoning laws restrict what you can do there in terms of business.

If you think about it, there are good reasons for this. What would it be like if someone could just decide to buy up a whole load of houses and turn the area into a shopping mall, without getting anyone’s permission? What if your neighbours could just turn around one day and start using their house as a shop? I doubt that you’d like that. The laws are there to protect your neighbourhood, and to stop business from interfering with people’s home lives.

You need to phone whatever local governmental body there is in your area, and ask them about the zoning laws in your area. If they’re not helpful, it could be worth a visit to a lawyer. You’ll find that laws vary massively – here are some of the things you might come across.

The Strict Zoning Policy.

Many areas still operate a strict ‘no-business’ policy in residential areas, and will come after you if you start a business without their permission. You’ll need to put in a formal application, and there could be a public hearing, giving other residents the chance to object. Time to start being nicer to your neighbours!

You should note that just because there are other home businesses in your area, it doesn’t mean that you’ll find it any easier to get permission. The rules may have been tightened up since those businesses were started. Still, it’s worth talking to other home businesses in the area, if you can, to see if you can get any advice.

Percentage Policies.

Another common way of handling things is to allow you to use only a percentage of your house for business, to avoid residential properties becoming wholly commercial. You might be told, for example, that only 20% of the house can be used for business purposes. This can be restrictive if you have a small house, or if you need to store things. Worse, areas with a policy like this are usually completely unwilling to vary it for you.

Restrictions by Industry.

It’s worth checking if there’s a special exception in the zoning laws for what you plan to do. Artists, for example, are often excluded from the laws (where are they supposed to work – the art office?), as well as people who give home tuition, like music teachers. Doctors and dentists are another common exception.

Signs and Traffic Rules.

You might find that the laws have special restrictions on signs and traffic. You could be restricted from putting anything on the front of your house that could be considered ‘advertising’, meaning that you can’t even have a sign with the name of your business. If you plan to have lorries or trucks bringing deliveries to your house, then that can pose a big problem, especially if someone complains about them, or there are lots of children in the area.

Visitor Rules.

Another contentious issue is visitors. For some reason, people get upset if lots of visitors keep coming to your house – they like their street to be quiet, not constantly busy. Some laws allow only a set number of visitors to your home business per day, or restrict the number of visitors that you can have at one time.

Breaking the Law.

A footnote to all this is that millions of businesses are operated illegally out of people’s homes, in violation of the relevant laws. They keep their business secret, because they know that admitting what they’re doing would probably get it closed down. This approach obviously isn’t recommended, though – you should always try your best to do things legally, and consider moving house if no-one seems to want your business in the area.

Hiring Adjustments For Generations X And Y

2010-01-07T17:04:00.000-08:00

Work-life balance. Flexible work hours. Corporate mission. What is the point of focusing on these non-traditional hiring topics? Two letters – X and Y. Generation X (born between 1963 and 1980) and Generation Y (born after 1980) are establishing a more prominent position within the employment landscape as the Baby Boomers prepare to exit the workforce. The shift to these younger generations is prompting a new focus in hiring tactics.

The Baby Boomer generation was cut from the cloth of work first and foremost, climb the corporate ladder and retire with a healthy pension plan. Those days are all but gone. Today, younger workers are creating a paradigm shift in employee hiring based on their priorities. We have observed this accelerating transition firsthand over the past 2 years.

We work with companies in many market spaces, industries and geographic locations. The hiring landscape has already changed and companies that do not frequently hire may be unaware of the new focus. Certain patterns exist today that are universally consistent when hiring Gen X and Gen Y employees.

--WORK-LIFE BALANCE--
Perhaps there is no more profound shift in values than this topic. Gen X, and even more so Gen Y, is focused on a position’s time requirements. This isn’t to say the younger generations are not hard workers. On the contrary, they put tremendous effort into their work, but they also place a high value on their personal time away from the office. This balanced approach has been mistakenly interpreted by the Baby Boomers as a “slacker mentality.”

The younger generations search for opportunities where they can grow their skill set without having to sacrifice every other area of their life. As an employer, it is imperative to understand this desired balance. Positions that lack the needed support, tools or technology often will be a red flag to the Gen X or Y candidate. The reward for accepting such a position clearly has to outweigh the perceived imbalance it may cause in their life.

--SKILLS PATH--
Most people are familiar with the term “career path.” The Baby Boomer generation experienced a marketplace where preordained opportunities existed to climb the corporate ladder within the same company. Today’s younger generations generally do not have such consistent opportunities before them. More importantly, many of the younger generation do not subscribe to the same loyalty as the Baby Boomers.

Gen X and Y candidates are looking for a “skills path.” They desire to understand what skills are needed to be successful in the position today. The long-term incentive is to understand what skills they will personally develop or acquire within the company. They prefer a horizontal management structure and respond to personal skill development. Titles are out. Responsibilities are in. It is imperative to share with the candidates the responsibilities they will inherit as their skills become more advanced over their tenure with the company.

--SHERPA MANAGERS--
As mentioned, the younger generations have a fairly horizontal view of the org chart – whether accurate or not. We have seen this approach wreak havoc in an office dominated by Baby Boomers. The Baby Boomers expect an almost military-style chain of command while the younger generations have a more fluid approach to positions of authority.

Gen X and Y highly value the manager-employee relationship. They view their manager as a guide – an experienced Sherpa to make sure they are on the right path. In debriefing Gen X and Y employees after they are hired, the vast majority consistently mention the impression of their manager as having the most influence on their decision to join the company. The hiring manager needs to connect with the Gen X and Y candidate on a personal level during the interview process. Clearly the manager-employee relationship is a two-way street so this approach affords the hiring manager a beneficial insight into the candidate also.

--WORK SMARTER NOT HARDER--
These generations are plugged-in to technology from Bluetooth to Blackberries. They have spent much of their working careers, even entire lives for some, having Internet information available to them at a moment’s notice. This fact can work against employers in that these younger candidates are savvy about Internet job boards and have a tendency to always have an eye out for new opportunities.

However, the upside of this technological ability is far greater. A subtle item we have observed among Gen X and Y candidates is their strategic thinking. Their youthful age belies the fact that they have sharp minds for understanding macro markets. We have seen these younger candidates ask amazingly insightful questions that make the hiring managers pause during the interview. We have also seen strong candidates pass on opportunities because they were skeptical of the hiring company’s shallow business plans.

The Gen X workforce will be ascending into prominent management positions at a brisk pace over the next 5 years. The next wave of change will occur in the management ranks as they shift the hiring process away from the Baby Boomer approach. The aforementioned topics will move to the forefront of the hiring process as the newly crowned Gen X managers hire the Gen Y employees. Until that happens, progressive companies will perceive these current shifts and adjust their hiring tactics in advance.

How Factoring Companies Can Help Your Business Succeed

2010-01-07T15:54:00.000-08:00

At the root of many successful businesses is an effective cash flow structure that is able to manage accounts receivable and lending against receivables. Cash flow management is vital to the profitability of a business, because commercial enterprises must also pay bills, just like everybody else.

A factoring service is designed to simplify accounts receivable management, by making it possible for the business to get a loan against receivables, based on the credit rating of the person who owes the money to the business. This type of service is an option for any business that has been having trouble collecting on unpaid invoices. Factoring companies are used in many industries and for businesses of all sizes, because they can assist in creating an efficient financial processing framework.

Factoring companies are responsible for helping a business convert accounts receivable into cash. A factoring company, sometimes referred to as accounts receivable financing, will help any business manage their financial resources more effectively and efficiently. The goal is for the business to enhance its collections during day-to-day business operations and convert its existing receivable assets into immediate cash flow. These newly available funds can then pay the necessary bills that are generated from running of a business.

It's important to first understand how accounts receivable funding is different from a standard loan obtained from a bank. Accounts receivable funding, or factoring loans, is not a loan in the common sense, but instead a transfer of assets (receivables in this case) to a third-party. While banks can take months to approve a regular commercial loan, an advance on receivables from the correct agency can help a business convert its own resources to cash within days and provide money for day-to-day operations. The factoring service merely provides the money already owed to the business, in advance of receiving payment from the business' customers. Businesses that take advantage of this kind of service do not have to wade through a bank's red tape in order to receive the cash it needs to keep its bills paid on time.

By working with a receivable finance agency, a business can gain access to a new pool of cash. This is an important part of improving a business' cash flow, and it will help tighten up accounts receivable and invoice management as well.

The process of factoring receivables, with today's leading receivable finance companies, is relatively simple and straightforward. First, a copy of the invoices that is sent to customers is delivered to the factoring service company. Various factoring companies extend different percentages for the value of the invoice, anywhere from 70-90%. The end-customer pays the factoring service the amount of the invoice, instead of paying the business directly. After the customer has paid his or her bill, the factoring company then pays the billing company the remaining balance, minus a discount fee. The process is very similar to accepting credit cards from customers, and it can significantly help put income into the company's bank accounts immediately.

There are many benefits to working with a factoring service. Some business managers make the mistake of thinking that factoring will be too costly, but the truth is that the benefits far outweigh the costs involved. Improving the cash flow of a business can lead to considerable savings over time -- this can include savings on the cost of credit investigations and any cash discounts on purchases. This cash-on-hand can also help the business to stay on solid footing with its own creditors.

Finding the right factoring company can take some time; so reviewing your options is an important first step. Financial services are readily available in the areas of receivable finance, asset-based finance, and purchase order finance. The most common types of businesses that can benefit from funding through a factor company, includes start-up businesses, seasonal businesses, and rapid-growth businesses. Some businesses that have insufficient collateral, are in acquisition situations, or have inadequate cash flow will also benefit from a factoring service.

The factor company can help to manage and collect accounts and ensure that you are paid immediately for all invoices received. Copies of the invoices are all the business needs to get started in a factoring agreement, and it can take as few as between 3-5 days to set up an account. Initial funding can take between 3-10 days after signing the agreement. In most cases, almost 100% of a company's accounts can be funded, depending on the industry, credit quality of the buyers, and invoice processing procedures. A factoring service can greatly assist in the success of a business, by providing the necessary cash on hand to run the business.