The Right Fit
I recently met with someone looking to change bookkeepers. Before taking on a new client, I try to determine if my services, experience, and style of interacting are appropriate for the business and the owner. After almost twenty years working with a variety of businesses and CPAs, I have a strong background and a lot of knowledge. But that doesn't mean I am right for every job that comes along. Thus, an in-depth discussion of the client's business, needs, and expectations is the first step in establishing a working relationship.
The first thing I ask is what bookkeeping or accounting system is being used. I specialize in QuickBooks, and although I have used other programs, I won't do books on any other system these days. I have several reasons for this -- the main one is that I'm good at QuickBooks and feel I can offer real value in every area from implementation and training, to data entry and reporting. That is not the case with other programs. I have a strong enough background in bookkeeping and accounting principals and have a certain proficiency with computers, so that I can offer some help in even an unknown program, but in such circumstances, my advice is always to find an expert in the program. This is not always easy to do, especially with very specialized back-office programs, which is the reason I advise small business owners to use QuickBooks -- there are many, many bookkeepers who are very knowledgeable QuickBooks users. This provides a large pool for a business to choose from, and it should not be hard to find the right bookkeeper for one's business.
I am cautious about taking on clients that are dissatisfied with another service. I want to understand what it was that didn't work before I determine if I can help. One of the things I've learned over the years is that often when someone complains about a service provider, be it a bookkeeper, janitor or consultant, the problem is often a two-way street. True, there are bad bookkeepers out there, and I've had the sad experience of helping a business owner recover from embezzlement, but that is the very rare exception. When a service does not meet the expectations of the customer, both the service and the expectations need to be examined.
That's what I try to do in our preliminary discussions -- determine not only the needs of the business, but the expectations of the owner. I am honest about my service -- there are things that I can do, but which would not be a good use of my time, nor the customer's money. For example, years ago I was hired by a wholesale business with thousands of retail stores all over the country. The owner had learned the best collection method is calling. She wanted her bookkeeper to spend a set number of hours per week making collection calls. This is not my strength, and it was a not a good use of my skills. I felt the owner was not getting good value for the money she paid me, and I suggested she find someone else. In the end, the company hired someone else to make AR calls, who was much better and more effective than I, while I did what I do best, and kept the books.
There are a wide variety of considerations that fall under the label "expectations." Some people want a bookkeeper in their office, while others are happy to have this aspect of the business off-site. Some businesses need daily attention, while others do the day to day entry themselves and need only periodic reconciliation and reporting. Some want only the most basic of reports, while others want projections, cash flow summaries, cost center or sales analysis. Service businesses have different needs from wholesalers, construction companies differ from retailers, brick and mortar stores have different components than online stores. Some owners don't want to think about their books, while others like to delve in deeply. Employees and benefits add a whole other layer.
All of these things should be considerations in determining the fit between a small business and its bookkeeper. But there is another element, as well. The human component. I feel a strong tie to all of my clients and take their success or failure personally. I like each and every one of my clients; they are good people. I believe they feel the same about me. This is important to me, and is the final piece that makes for a good fit, I think.
The Right Fit posted by CL Goddard Financial @ 11:42 AM 0 Comments
The first thing I ask is what bookkeeping or accounting system is being used. I specialize in QuickBooks, and although I have used other programs, I won't do books on any other system these days. I have several reasons for this -- the main one is that I'm good at QuickBooks and feel I can offer real value in every area from implementation and training, to data entry and reporting. That is not the case with other programs. I have a strong enough background in bookkeeping and accounting principals and have a certain proficiency with computers, so that I can offer some help in even an unknown program, but in such circumstances, my advice is always to find an expert in the program. This is not always easy to do, especially with very specialized back-office programs, which is the reason I advise small business owners to use QuickBooks -- there are many, many bookkeepers who are very knowledgeable QuickBooks users. This provides a large pool for a business to choose from, and it should not be hard to find the right bookkeeper for one's business.
I am cautious about taking on clients that are dissatisfied with another service. I want to understand what it was that didn't work before I determine if I can help. One of the things I've learned over the years is that often when someone complains about a service provider, be it a bookkeeper, janitor or consultant, the problem is often a two-way street. True, there are bad bookkeepers out there, and I've had the sad experience of helping a business owner recover from embezzlement, but that is the very rare exception. When a service does not meet the expectations of the customer, both the service and the expectations need to be examined.
That's what I try to do in our preliminary discussions -- determine not only the needs of the business, but the expectations of the owner. I am honest about my service -- there are things that I can do, but which would not be a good use of my time, nor the customer's money. For example, years ago I was hired by a wholesale business with thousands of retail stores all over the country. The owner had learned the best collection method is calling. She wanted her bookkeeper to spend a set number of hours per week making collection calls. This is not my strength, and it was a not a good use of my skills. I felt the owner was not getting good value for the money she paid me, and I suggested she find someone else. In the end, the company hired someone else to make AR calls, who was much better and more effective than I, while I did what I do best, and kept the books.
There are a wide variety of considerations that fall under the label "expectations." Some people want a bookkeeper in their office, while others are happy to have this aspect of the business off-site. Some businesses need daily attention, while others do the day to day entry themselves and need only periodic reconciliation and reporting. Some want only the most basic of reports, while others want projections, cash flow summaries, cost center or sales analysis. Service businesses have different needs from wholesalers, construction companies differ from retailers, brick and mortar stores have different components than online stores. Some owners don't want to think about their books, while others like to delve in deeply. Employees and benefits add a whole other layer.
All of these things should be considerations in determining the fit between a small business and its bookkeeper. But there is another element, as well. The human component. I feel a strong tie to all of my clients and take their success or failure personally. I like each and every one of my clients; they are good people. I believe they feel the same about me. This is important to me, and is the final piece that makes for a good fit, I think.
Labels: accounting, bookkeeping, Marin, Mill Valley, QuickBooks
The Right Fit posted by CL Goddard Financial @ 11:42 AM 0 Comments
Grace
As a bookkeeper, I learn from my own experience, as well as that of my clients. I've seen that one of the advantages of being a small business owner is the opportunity to interact directly with clients, vendors and others in our community. Unfortunately, these dealings are not always easy. We all know there are difficult people out there -- the customer who demands the impossible, the employee who takes advantage, the contractor who does not fulfill a commitment. The normal response -- defensiveness, curtness, exasperation -- too often does not lead to a comfortable resolution. These are situations that call for grace.
I've thought about grace in the business environment ever since a friend explained how he admires people who conduct themselves with grace-- not just under pressure, but in all situations. When I asked him what he meant by "grace" he wasn't able to define it, but mentioned several mutual acquaintances as examples. Each of the people he named demonstrate a certain manner of being which somehow communicates a respect for the people they interact with, for themselves, for the situation. Other words that come to mind are consideration, politeness, honesty, tolerance. Grace is all of these things, and more. It is personal even in business.
As a business strategy, it is amazingly successful. Responding with grace -- not merely swallowing one's exasperation but sincerely trying to understand the other person's perspective and treating the other not as an opponent but as a person -- may not always lead to a perfect resolution but the chances are good that it will lead to a better resolution. I've seen it happen enough times for my clients, some of whom seem to have been born with grace and others who have worked hard to achieve it: a difficult situation that could escalate into unpleasantness is defused with grace. Compromises are reached, customers satisfied, work performed more conscientiously.
I have seen how the opposite holds true -- those who, in the name of efficiency, treat others with an unwitting callousness. They do not realize that their manner, although not actually rude, creates a barrier to positive interaction. It can be subtle; people do not respond as well, perhaps do not offer the extra service or return business. Those lacking grace may never realize that there is another way, that things could be better.
I believe that grace can be achieved through a conscientious effort. I have been working at it and have seen positive results.
Grace posted by CL Goddard Financial @ 7:08 PM 0 Comments
I've thought about grace in the business environment ever since a friend explained how he admires people who conduct themselves with grace-- not just under pressure, but in all situations. When I asked him what he meant by "grace" he wasn't able to define it, but mentioned several mutual acquaintances as examples. Each of the people he named demonstrate a certain manner of being which somehow communicates a respect for the people they interact with, for themselves, for the situation. Other words that come to mind are consideration, politeness, honesty, tolerance. Grace is all of these things, and more. It is personal even in business.
As a business strategy, it is amazingly successful. Responding with grace -- not merely swallowing one's exasperation but sincerely trying to understand the other person's perspective and treating the other not as an opponent but as a person -- may not always lead to a perfect resolution but the chances are good that it will lead to a better resolution. I've seen it happen enough times for my clients, some of whom seem to have been born with grace and others who have worked hard to achieve it: a difficult situation that could escalate into unpleasantness is defused with grace. Compromises are reached, customers satisfied, work performed more conscientiously.
I have seen how the opposite holds true -- those who, in the name of efficiency, treat others with an unwitting callousness. They do not realize that their manner, although not actually rude, creates a barrier to positive interaction. It can be subtle; people do not respond as well, perhaps do not offer the extra service or return business. Those lacking grace may never realize that there is another way, that things could be better.
I believe that grace can be achieved through a conscientious effort. I have been working at it and have seen positive results.
Labels: bookkeeper, bookkeeping, Grace, Marin, Mill Valley, small business
Grace posted by CL Goddard Financial @ 7:08 PM 0 Comments
Bad feeling about banking with the big boys
I recently had an extremely unpleasant interaction with my bank/brokerage firm. I have been a brokerage customer of theirs for over 25 years and set up a checking account when they offered that service a few years back. I was pleased with some of the conveniences they offered and had considered helping my college-aged son set up an account with them.
All this changed last week. As someone who works in the accounting field, the tax season is always a busy time for me. As I prepared my clients books, I let my own slide for the past couple of months. In fact, I have to admit I am just now reconciling my bank statements for the months of February and March. Imagine my surprise when I opened the bank statement from this major discount brokerage firm and discovered ACH debits on my account that I had not made to companies that I have no relationship with. There were three of these payments in February and one about a week ago.
I immediately called the discount brokerage firm/bank and spoke to a customer service representative somewhere in the Mid West. He said the company would look into the unauthorized debits. I was shocked. This is not the answer I expected. When a questionable charge appeared on my credit card, the credit card company reversed the charge and then investigated. Not so with an ACH payment on a checking account. At least, not this checking account with this bank.
I was told it would take 7 - 10 business days to review the case. I asked to set up blocks so these types of payments would not come through again and was told that they would do what they could but could not guarantee that such charges wouldn't occur again.
Several days later (today) I received a notice that they are "passed the time frame for all charges but the charge. All other charges you must work with the merchant to resolve your dispute. This matter is now resolved and we have closed our file."
So, that's it?? Someone else paid his or her cable and phone bills using my account and the bank is doing nothing? The matter is closed? I am out some $600. I don't consider the matter closed. I consider this fraud.
I am unaware of the banking regulations that apply in this case, as, I suspect, most people are. I have to guess that they are within their rights to close the case. Of course I will follow up with the merchants, but I don't even know where to begin. You call the phone company and they want an account number. I don't have an account number to provide because I don't do business with them.
The lesson here? There are several, I can think of. The number one lesson is to review all bank and credit cards statements immediately. Contact your financial institution if you even suspect a problem. I don't know if it's possible to prohibit all ACH debits on an account, but if so, it might be a wise idea to do so, if it's that easy for someone else to use your account number. This is what I will tell all my bookkeeping clients.
On a personal level, though, there is more to this. The form letter I received left me with the feeling that many Americans are now experiencing -- a lack of confidence and trust in large financial institutions. Personally, I am taking out all of my money from this organization, not just the banking wing, but the brokerage accounts as well. I just don't feel good about keeping my retirement, my children's college fund, or any of my hard earned savings in an organization in which no one cares if my money disappears in unauthorized transactions.
I'm thinking I might have a better chance of a more personal resolution in a small, locally owned bank. Even if the end result is the same, I am guessing I'd get more than a form letter. I like being able to call and speak to someone I know, and I can get that at a home town bank. Although I've established relationship with bankers over the years, as I act as the liaison between the bank and my clients, too often the "personal banker" at a large bank is transferred to another branch and we have revolving relationships with a series of "personal bankers."
I honestly don't expect to get these unauthorized debits reversed. If anyone out there has any advice on this, please send it my way and I'll pass it on. At least this has motivated me to make a change I have been considering, using my money to support my community. Hometown banks provide loans to their communities, thus thus enriching both the business environment and personal lives of my town and my neighbors.
Bad feeling about banking with the big boys posted by CL Goddard Financial @ 10:00 PM 0 Comments
All this changed last week. As someone who works in the accounting field, the tax season is always a busy time for me. As I prepared my clients books, I let my own slide for the past couple of months. In fact, I have to admit I am just now reconciling my bank statements for the months of February and March. Imagine my surprise when I opened the bank statement from this major discount brokerage firm and discovered ACH debits on my account that I had not made to companies that I have no relationship with. There were three of these payments in February and one about a week ago.
I immediately called the discount brokerage firm/bank and spoke to a customer service representative somewhere in the Mid West. He said the company would look into the unauthorized debits. I was shocked. This is not the answer I expected. When a questionable charge appeared on my credit card, the credit card company reversed the charge and then investigated. Not so with an ACH payment on a checking account. At least, not this checking account with this bank.
I was told it would take 7 - 10 business days to review the case. I asked to set up blocks so these types of payments would not come through again and was told that they would do what they could but could not guarantee that such charges wouldn't occur again.
Several days later (today) I received a notice that they are "passed the time frame for all charges but the
So, that's it?? Someone else paid his or her cable and phone bills using my account and the bank is doing nothing? The matter is closed? I am out some $600. I don't consider the matter closed. I consider this fraud.
I am unaware of the banking regulations that apply in this case, as, I suspect, most people are. I have to guess that they are within their rights to close the case. Of course I will follow up with the merchants, but I don't even know where to begin. You call the phone company and they want an account number. I don't have an account number to provide because I don't do business with them.
The lesson here? There are several, I can think of. The number one lesson is to review all bank and credit cards statements immediately. Contact your financial institution if you even suspect a problem. I don't know if it's possible to prohibit all ACH debits on an account, but if so, it might be a wise idea to do so, if it's that easy for someone else to use your account number. This is what I will tell all my bookkeeping clients.
On a personal level, though, there is more to this. The form letter I received left me with the feeling that many Americans are now experiencing -- a lack of confidence and trust in large financial institutions. Personally, I am taking out all of my money from this organization, not just the banking wing, but the brokerage accounts as well. I just don't feel good about keeping my retirement, my children's college fund, or any of my hard earned savings in an organization in which no one cares if my money disappears in unauthorized transactions.
I'm thinking I might have a better chance of a more personal resolution in a small, locally owned bank. Even if the end result is the same, I am guessing I'd get more than a form letter. I like being able to call and speak to someone I know, and I can get that at a home town bank. Although I've established relationship with bankers over the years, as I act as the liaison between the bank and my clients, too often the "personal banker" at a large bank is transferred to another branch and we have revolving relationships with a series of "personal bankers."
I honestly don't expect to get these unauthorized debits reversed. If anyone out there has any advice on this, please send it my way and I'll pass it on. At least this has motivated me to make a change I have been considering, using my money to support my community. Hometown banks provide loans to their communities, thus
Labels: ACH debits banking regulations unauthorized debits bookkeeping
Bad feeling about banking with the big boys posted by CL Goddard Financial @ 10:00 PM 0 Comments
Putting the kid to work
I am not a CPA and don't do taxes, so talk to your CPA before you follow my example here. If you don't have a CPA and you have a small business, stop what you're doing and get one. Now.
O.K. now that that's out of the way, let's talk about why you might want to employ your child. I know CPAs that have encouraged clients to employ their kids to clean the office and their spouses to file and run errands. What's the advantage of this? For one, there are tax savings for the business when paying a family member as an employee. If the family member is under the age of 18 (presumably a child, not a spouse) you don't have to withhold or pay FICA or medicare, nor do you have to pay FUTA or SUTA. (If you don't know what those are, make sure your payroll processor does.) If you decide to employ your children, you have to comply with child labor laws and the amount you pay should be reasonable for the work performed. Some people put their kids on the payroll just to make the child's allowance a tax deductible business expense. I guess that makes good business sense, especially if you're following the advice of your CPA.
However, I believe there are other, better reasons to hire your son or daughter. My friend, Chris, a terrific CPA, is a huge advocate of Roth IRAs and thinks the earlier someone starts contributing, the better. (We had some family turmoil around this issue a few years ago when I had my 16 year old son set one up and contribute half of his summer earnings to it. He didn't know it was not just a savings account and got quite upset when he discovered he couldn't withdraw the money and buy a new amp.) If your child is working for you, then she or he can make a Roth IRA contribution and start building toward the future.
In addition to the pragmatic, financial benefits of employing your child, I believe there are some powerful familial benefits. This is why I have hired my 15 year old. He is learning skills that will be useful to him on the job front. I showed him how to create an Excel spreadsheet the other day and he thought it was great. I'm afraid to even look at his math homework since then -- he's probably done it all in Excel. He's also learning to reconcile bank statements, address envelopes and write checks. He understands what he's looking at when he sees a deposit slip, receipt or bill. All things he will have to know in the course of daily life.
The best part is that we are working together. I get to see how his mind works as he learns new things. We get to share a few hours a week that are outside the barrage of homework, cell phones, text messaging, and itunes. He may not consider it quality time, but for me, it's the highlight of my week.
Putting the kid to work posted by CL Goddard Financial @ 9:07 AM 0 Comments
O.K. now that that's out of the way, let's talk about why you might want to employ your child. I know CPAs that have encouraged clients to employ their kids to clean the office and their spouses to file and run errands. What's the advantage of this? For one, there are tax savings for the business when paying a family member as an employee. If the family member is under the age of 18 (presumably a child, not a spouse) you don't have to withhold or pay FICA or medicare, nor do you have to pay FUTA or SUTA. (If you don't know what those are, make sure your payroll processor does.) If you decide to employ your children, you have to comply with child labor laws and the amount you pay should be reasonable for the work performed. Some people put their kids on the payroll just to make the child's allowance a tax deductible business expense. I guess that makes good business sense, especially if you're following the advice of your CPA.
However, I believe there are other, better reasons to hire your son or daughter. My friend, Chris, a terrific CPA, is a huge advocate of Roth IRAs and thinks the earlier someone starts contributing, the better. (We had some family turmoil around this issue a few years ago when I had my 16 year old son set one up and contribute half of his summer earnings to it. He didn't know it was not just a savings account and got quite upset when he discovered he couldn't withdraw the money and buy a new amp.) If your child is working for you, then she or he can make a Roth IRA contribution and start building toward the future.
In addition to the pragmatic, financial benefits of employing your child, I believe there are some powerful familial benefits. This is why I have hired my 15 year old. He is learning skills that will be useful to him on the job front. I showed him how to create an Excel spreadsheet the other day and he thought it was great. I'm afraid to even look at his math homework since then -- he's probably done it all in Excel. He's also learning to reconcile bank statements, address envelopes and write checks. He understands what he's looking at when he sees a deposit slip, receipt or bill. All things he will have to know in the course of daily life.
The best part is that we are working together. I get to see how his mind works as he learns new things. We get to share a few hours a week that are outside the barrage of homework, cell phones, text messaging, and itunes. He may not consider it quality time, but for me, it's the highlight of my week.
Labels: employee, family members on payroll, Roth IRA, small business, taxes
Putting the kid to work posted by CL Goddard Financial @ 9:07 AM 0 Comments
Recon 101
A couple of days ago I had a call from one of my QuickBooks for the Mac users. Patty is a terrific lady who took the reins of her family business and finances when her husband retired. Over 5 or 6 sessions together we set up the books in QuickBooks on her new Mac and I taught her how to get around in the program and how to run the reports I had created. It was pretty basic bookkeeping -- cash based, no invoices, no inventory, everything straight forward. Patti got a handle on things and was meticulous about entering everything into the books, and enjoyed doing it.
Recon 101 posted by CL Goddard Financial @ 2:39 PM 0 Comments
She had been running her books on her own(flying solo) for a couple of months when she called and left a message saying that she was having problems with reconciliation of the bank statements. She said there were duplicate checks in the register, and wanted me to drive up to her office and help her figure it out. Listening to her message, I groaned. I was very busy and did not know if I could fit her in a house call. Perhaps it wouldn't be necessary -- I often can diagnose and fix a problem over the phone.
I called her back and asked if she had been downloading
transactions from the bank. People sometimes end up with duplicate entries when they enter data manually or through memorized transactions, then do a download. Theoretically, this shouldn't happen, as the downloading process matches transactions that are already in the register, but I'd seen it occur for one reason or another.
When she said that she didn't even know how to do online banking and had never downloaded anything, I figured I'd have to look at her books firsthand to understand the problem.
transactions from the bank. People sometimes end up with duplicate entries when they enter data manually or through memorized transactions, then do a download. Theoretically, this shouldn't happen, as the downloading process matches transactions that are already in the register, but I'd seen it occur for one reason or another.
When she said that she didn't even know how to do online banking and had never downloaded anything, I figured I'd have to look at her books firsthand to understand the problem.
When I arrived she showed me the problem -- the opening balance in her reconciliation window of QuickBooks did not match the opening balance on the bank statement.
If this happens in any of the newer QuickBooks PC editions, all you have to do is look at the reconciliation discrepancy report, which will tell you what has been changed since the last recon. Unfortunately, the Mac version does not have this feature. We'd have to sleuth out the problem.
Fortunately, Patti had kept all her printed reconciliation reports so I was able to compare the cleared items on the printed reports to the cleared items in QuickBooks. Also, fortunately, she does not put through very many transactions in any given month. Since she had only been doing the books in QuickBooks for a few months, there was not too much data to compare to the reports.
Eventually I discovered the problem - it had started the first month that she had reconciled. She had accidentally cleared a check that had yet to hit the bank. In fact, the check was dated for the month after the reconciliation. In the PC versions of QuickBooks, you enter the statement ending date in the recon window when you first begin the reconciliation. You are also given the option (in newer versions of QuickBooks) of hiding all transactions dated after the statement date. Had Patti been using such an option, she would not have accidentally clicked off a check dated after the statement date and she would not have had the problem with that first reconciliation. When she finished that first reconciliation a message popped up telling her that her ending balance did not match the bank statement balance and asked if she wanted QuickBooks to add an entry to make them match.
If this happens to you, the answer is NO. If the ending balance doesnt' match, then you need to find out why. Unfortunately, many people say OK and let QuickBooks "fix" the problem. This is what Patti had done.
QuickBooks created an entry to offset the check that had been incorrectly cleared. Later, when Patti looked at the register, she saw this entry and knew it was wrong, so she deleted it. Since that entry had been cleared as part of the reconcilation, by deleting it, Patti had done something we never do. She had deleted a cleared transaction. Never delete a cleared transaction.
Patti did not understand why every time she attempted to reconcile, the opening balance was off. She let QuickBooks "fix" her balance, then later found "duplicate" checks in her register. They were not actually duplicates. The amounts were duplicates of the original check she had cleared incorrectly, but they hit different offset accounts (in this case opening balance equity). Patti kept deleting these entries when she saw them, wondering why she was getting duplicate checks in her register, and eventually called me, thinking it was a glitch in the software.
This was a good learning session for Patti as I worked my way through her books and figured out the problem. She learned how good it was to keep hard copies of the recon reports. She also learned not to accept an adjusting entry if the bank statement balance doesn't match the QuickBooks balance, and finally, Never to delete a cleared transaction. Those are the lessons of Recon 101.
Labels: bank statements, bookkeeping, QuickBooks
Recon 101 posted by CL Goddard Financial @ 2:39 PM 0 Comments
Bookkeeping the old fashioned way
In my first job, I was required to provide the boss an income statement and balance sheet for the business at the end of every month. We wrote checks by hand, with carbon copies of all checks and deposits. At the end of the month I would enter the month's check in the general ledger in the appropriate expense category then total the categories on an adding machine. I always ran a tape, and had to keep running it until I had two with the same totals. I stapled the tapes to the general ledger for proof that the totals were right. I did the same for all deposits, recording the customer's name, check number, and the check amounts in one of two income categories.
Bookkeeping the old fashioned way posted by CL Goddard Financial @ 6:48 PM 0 Comments
At least, this is how I was trained. Very quickly I grew tired of all that hand entry and began to use a spreadsheet -- PlanPerfect, I think it was. We were using it in the office for other functions, so it made sense to me to enter the accounting data into it. I enjoyed sorting the data and creating the reports the business owner wanted to see. At the time I was more interested in the challenge of constructing the reports than in what they actually conveyed.
I ran payroll and filed payroll filings, with taxes and other with holdings all calculated on the adding machine. I typed invoices and account statements. We had a physical file for every client and every job and when we needed information, we went through the archives.
Now, with QuickBooks (and other bookkeeping programs) and payroll solutions and online banking, running the books of a small business has never been more automated. I don't know if we could say it's easier, though, because as we acquire more tools, we seem to add complexity. For a small business to do well in a tough economic climate, they need to use all the tools as their disposal. If you have a small business bookkeeping program and use it only as a check register, or as a repository of unsorted data to provide to your CPA at the end of the year, you are missing out on valuable information that could help you grow your business.
I am grateful for learning bookkeeping the old fashioned way. It provided me with a good understanding of double entry system and laid the groundwork for my business.
I am just as grateful to have had that first boss who allowed me to experiment with new tools and who taught me the value of financial reports.
I am grateful for learning bookkeeping the old fashioned way. It provided me with a good understanding of double entry system and laid the groundwork for my business.
I am just as grateful to have had that first boss who allowed me to experiment with new tools and who taught me the value of financial reports.
Labels: bookkeeping, financial reporting, small business
Bookkeeping the old fashioned way posted by CL Goddard Financial @ 6:48 PM 0 Comments
Taking the first step
The other day my twenty-three year old niece called me to tell me she's starting a business. She and her partner are quite serious about it; they have reserved office space and hold weekly meetings to discuss their business plan, developing it well beyond the "wouldn't it be a great idea" stage. They have begun work on a website and are moving forward in many directions. The one area they are most concerned about, because they know the least about it, is how to handle all the official things -- like filings, and formations, and EINs, licenses and taxes and all that.
Taking the first step posted by CL Goddard Financial @ 8:07 PM 0 Comments
Because they do not live here in Marin County, or even in California, I wasn't able to tell her exactly what she needed to do. However that didn't stop me from offering advice (because this is what we older people have to offer the next generation). My advice was twofold:
First: Not to let the fear of documentation stymie them. Yes, there are forms to be filed. They will need to hammer out the details of their partnership and formalize it to some extent. They will need a business license. They will want to form a partnership or an LLC, or even a C Corp. to get an accounting system and file tax returns, and one day pay employees and sales tax. But not now. Right now they need to keep moving forward. The business they have in mind will require a lot of preliminary work before they start earning money. They've taken the first step, but they need to take the next, and the one after that.
My second piece of advice: To keep all their receipts.
Labels: bookkeeping, business, Marin, receipts, taxes
Taking the first step posted by CL Goddard Financial @ 8:07 PM 0 Comments
