Accounting and Bookkeeping Articles

It doesn’t matter whether you’re a one-person or 20-person operation—at one point or another, you will have to conduct business meetings.  Often, these meetings can be overscheduled, unfocused, under-prepared, and a big fat waste of time.  Whether they be with your staff, a client, strategic partners or your family, you will want to know how to run more effective meetings so that everyone is satisfied.

A business article found on Dummies.com entitled “Conducting Effective Business Meetings,” give a few pointers on how to conduct meetings that are empowering, boost morale, help develop work and leadership skills while enabling everyone present the ability to communicate more effectively.  Here are just a few of the highlights:

1. Cut back.  While some meetings are necessary, most are not.  And a proliferation of unnecessary meetings means a jam-packed scheduled that doesn’t allow for many billable hours.  Try eliminating some of these meetings by accomplishing their objectives via phone or email.  Then ensure that when you do meet with people, there’s a solid purpose.

2. Prepare. Gather all the necessary data you need in order for the meeting to be successful.  Meetings that are shot from the hip frustrate attendees who begin to believe that their time would be better spent elsewhere—and in such a case, it probably would be!

3. Provide an agenda. A meeting agenda provides attendees with a list of topic to cover and objectives to accomplish.  When possible, distribute the agenda before the meeting so that attendees can prepare for the meeting and their participation beforehand.  Either way, agendas will better enable you to conduct meetings that are on task.

4. Maintain focus. It’s not uncommon for meetings to run off-track as attendees begin chatting about the latest reality show or their cousin Maybell’s wedding.  As the one presiding over the meeting, it is your job to ensure that you follow the agenda and steer everyone clear of these distracting water-cooler topics.

5. Make them inclusive. Exclusive meetings are often necessary.  However, sometimes the best ideas come from entry-level staff.  Consider inviting everyone on your payroll to the next company meeting, even your teenage son who files your invoices on the weekend.  You may be surprised at the dynamic this create and the winning ideas that result.

6. Start and end on time. People are more generous with their time when they know it won’t be squandered.  When you honor the meeting schedule by starting and ending on time, you’ll find meetings are more productive and make for more cheerful attendees.

7. Capture and assign action items. Meetings are useless if you don’t note action items and assign them to people.  Be sure that these assignments are clear and that you follow-up by emailing them to everyone afterward.

8. Solicit feedback. Those who attend your meetings can provide the best feedback regarding how effective they are.  You want to encourage them to tell you what went right and wrong.  When getting specific information on improvements that could be made, consider asking the following questions suggested by Dummies.com:

• Was the meeting too long?
• Did one person dominate the discussion?
• Were attendees unprepared?
• Where the times on the agenda unclear?

Meetings can be a valuable resource that provides you with crucial information that can propel your practice forward.  However, that can only happen when your meetings are effective.  Applying the above tips will enable you to cut back on unnecessary meetings while ensuring that those that remain are more productive.

Red to Black in 30 Days

If you or a client’s business is failing, chances are meetings wouldn’t rectify that.  However, there are some powerful steps you can take to get a business back on track.  Written by Universal’s President and CEO, Allen Bostrom, Red to Black in 30 Days enables readers to learn the Universal Project Management Model that will enable them to save failing businesses.   This book is a guideline for financial professionals who work with disheartened small business owners in need of a good turnaround plan.

Each chapter focuses on a crucial aspect of the turnaround process. Simple steps are outlined from initial contact through stabilization and profitable growth. This can be the guide through your first turnaround experience or it can enhance the management skills of even the seasoned contract accountant.  You may find that in offering turnaround services your business (and those of your clients) will be the few that thrive in these difficult financial times. For the cost of this one book you can enhance your value to current and prospective clients.  Order your copy now.

Resource

–.  “Conducting Effecting Business Meetings.” Dummies.com

It seems we’ve unintentionally caused a stir.  In an offer sent out recently, we suggested that you don’t need to spend four years in a university setting to enjoy a lucrative career as a small-business accountant.  While we stand by that claim, this post is intended to clarify a few things we said.

First of all, if you dedicated time and energy to receiving a university degree, you should be proud of that accomplishment.  It represents personal achievement and priceless experience.  And if your intention was to establish a career as a corporate accountant, even better; your accounting degree will definitely work to that end.

Unfortunately, less than 10% of accounting opportunities reside in the corporate sector.  You’ll find more prospects in small business which employ nearly half of the workforce and comprise approximately 99% of total US businesses.  Our purpose in that email was to say that depending on your intended career path, Universal Accounting is not only a sound alternative to a university degree, but it’s a more practical choice for those who want to focus on small-business accounting.

We maintain that those who are interested in working as small-business accountants, either for themselves or an employer, will find Universal’s Professional Bookkeeper (PB) Program well worth the time and effort.  Not only is it reputable, but it’s also self-paced, enabling busy professionals like you to complete the program in less than 60 hours.

This is all about redirecting your efforts to align with your desired professional path.  If you went to school for 9 years to become a doctor, and then later decided you wanted to work as an architect instead, your medical degree would not help you accomplish that; you would need to retrain. That doesn’t mean the previous schooling would not prove beneficial in some ways, but it wouldn’t be sufficient. The same applies to those who were trained in corporate accounting.  If they decide to focus on small-business accounting instead, they need to retrain.  UA’s PB program is the perfect vehicle to help those individuals launch themselves forward on this new career path.

For 30 years, Universal Accounting Center has been training professionals in small-business accounting.  We recognize that this is a valuable niche market where specialized instruction is crucial to your success.  In addition to being able to complete the program in a matter of months, but you would have access to the following:

• Rich and engaging training DVDs you can view again and again
• Hands-on instruction through which you gain much-needed experience
• Training in building and marketing your new practice
• 6 months of valuable follow-up support
• The opportunity to earn professional certification
• Our iron-clad risk-free guarantee

We hope this clears things up a bit.  As always, we appreciate the feedback and hope you will not only rate this post, but also leave any comments you may have on the subject of retraining.  For more information on the Professional Bookkeeper Program, visit Universal Accounting Center today.

As competition increases and some marketing techniques become more complicated, the best approach for small businesses is often the simplest approach.  In an article found on BNet.com, Steve Tobak reflects on “Marketing Megatrend: Simple Sells.”  In it, he evaluates the latest trend in retail marketing-simplicity.  Could it work for your practice?  More than you might imagine.

In a USA Today article by Bruce Horovitz, this new trend is introduced as a way to promote products with fewer additives or ingredients.  While this is a significant trend in food products, is it possible that it could help you better promote your accounting practice? Tobak shares 5 reasons why simplicity could work for you as well:

1. Simple is best.

When it comes to convincing your target market that they should select your services over the competition’s, simple is always the best and most successful approach.

2. Trends are popular for a reason.

Not that you should hop on the bandwagon simply because it exists, but consumers are going to gravitate towards this new trend because it’s popular.  You might as well take advantage of the momentum.

3. In the midst of marketing chaos, simplicity is more calming and appealing.

According to USA Today, 2009’s hottest marketing trend was buying things for less money.  After all the chaos generated by the recession, simplicity represents ease and effortlessness.  At this time in the marketing continuum, that’s going to be more appealing.

4. Simplicity is arguably a universal law.

The universe loves simplicity.   Not only did a 14^th-century Franciscan friar believe as much, but so did Albert Einstein.  In an article entitled “In Management, Keep it Simple, Tobak explains, “…simple concepts-such as core competency-have been successful over the long haul, while complex ones-like matrix management-haven’t stood the test of time.”

5.    Simplicity appeals to both the left and right-brained. Tobak explains, “Emotionally, we associate ’simple’ with easy, quick, controlled.  …These days we just want things to work the way they’re supposed to-no instructions, no drama, no returns.”  The emotional aspect appeals to the right-brained, and performance expectations appeal to the left-brained.  Simplicity equates to a win-win for both.

While we wouldn’t encourage you to follow a trend simple because it exists, we would ask you to evaluate the benefits of simplicity marketing to see if it might work for your practice.

Proven Marketing Trends for Your Practice

We get it.  Marketing just isn’t your thing.  You’re more comfortable running numbers than you are running ad campaigns.  At least that’s how most financial professionals are.  Unfortunately, in order for your business (and your bottom line) to grow you must promote it.  And promote it effectively.

We understand that you can’t afford to waste countless hours a week marketing your business.  If you did then when would you actually work for your clients?  So each and every minute you spend marketing must be effective and practically guarantee a payoff in attracting and securing a better clientele.

For 30 years Universal Accounting Center has trained financial professionals like you in small business accounting.  In all our years working with accountants, bookkeepers and tax preparers we’ve come to understand that most don’t know how to promote their services to this niche market of small businesses.  We do!  And not only do we know how to market those services, but we know which strategies and approaches will grow your business to the point where you will become so busy you may just have to start turning clients away – that or consider increasing your staff in order to increase your capacity (and your bottom line!).

To share this priceless information we developed the Universal Practice Builder Program, otherwise known as Marketing on Steroids.  You will learn how to increase your billable hours and get the monies you deserve by leveraging your time with techniques proven to get clients, allowing your firm to become the premier service in your area for accounting, bookkeeping (write-up) and tax.  Your ability to market your business and network with key community players will promote your practice to those who need and appreciate it most.

But don’t take our word for it.  Read what some of our students have said:

Student Testimonials

UAC is a great company with great staff, teachers & presenters. (Integrity in approach to accountants and businesses. Great knowledge of subject matter and how to market our skills.) I will recommend this to others – I thought the UPB exceeded my expectations. The DVD’s and binders are top quality and the one-on-one with the presenters and fellow attendees was fabulous. I was initially attracted to attend the program by the opportunity to have a good income from bookkeeping and accounting. – Vicki G.

UAC is the premier trainer of the accountants of the future. They truly understand how to differentiate their clients from the average accountants. To be honest, I don’t want anyone in my area to know about UAC. I think the information provided will truly separate my services from 95% of my competition.-Magnus E.

You guys certainly over-delivered. I now feel extremely confident to be able to sell my profession, knowing that I am truly providing a great value to my clients. – Igor P.

Universal Accounting is out to help accountants and bookkeepers to understand how to market their trade and to help their business clients become profitable. The training and programs are great. The materials and the presentations were very easy to follow and enlightening. All the presenters, the staff were great. It is comforting to know that I have this great company (UAC and staff) to provide support to me if I need it or falter. Thanks for a great job. – Anthony A.

Learn proven marketing techniques guaranteed to increase your clientele and your bottom line.  Make 2010 a banner year for your practice.  Enroll in the Universal Practice Builder Program now!

Resource

Horovitz, Bruce.  “Marketers Such as Starbucks Discover that Simple Sells.” 28 October 2009.  USAToday.com

Tobak, Steve.  “In Management, Keep it Simple.” 16 April 2009  BNet.com

Tobak, Steve.  “Marketing Megatrend: Simple Sells.” 2 November 2009  BNet.com

If you don’t have a competitive advantage, don’t compete. – Jack Welch

In order for your accounting practice to excel, it must maintain a competitive advantage.  Status quo is never sufficient for those who want their businesses to continually expand and grow (and earn more revenue).  Here are 6 tips that will help you accomplish that:

1. Read one article a day.

Whether it be about accounting, marketing, tax preparation or business principles, the more you expose yourself to timely and relevant information regarding your profession, the more competitive you will be.  In fact, in an article posted on Entrepreneur.com entitled “5 Tips to Keep You Sharp,” Scott Halford goes so far to suggest reading articles with opposing opinions.  He explains, “You brain chemistry switches when you are met with competing knowledge or an opinion that flies in the face of your own experience.”

2. Watch your competitors.

This tip is found on AllBusiness.com as one of three quick tips intended to help readers maintain a competitive advantage.  Not only do they recommend you monitor your competitors, they also suggest you not be ashamed to copy their best ideas.  Regardless, if you don’t know about your competitors-what they offer, how they market, what they charge-you’ll always lag behind and be the less prominent accounting practice.

3. Attend conferences and workshops.

There are many specialty conferences and workshops offering a wealth of information enabling you to keep up with your industry.  Not only can you learn from the presenters on the program, but you can also learn from other attendees who may face the same challenges as you do in their own accounting practices.

4. Schedule time to devise new approaches and services

While you may be tempted to spend all your time on billable hours, the only way you can improve your business is by working on your business.  Schedule time each month to consider new approaches and services that would enhance your accounting practice.  Note client suggestions, concerns and frustrations as you look for new ways to satisfy their accounting wants and needs.

5. Teach someone about something you do

This can come in the form of seminars designed to get you new clients.  Or it can manifest itself in a mentoring relationship you share with another professional.  Regardless of the situation, when you teach someone about something you do, you look at it from a different perspective which often enables you to learn new things yourself.  Halford explains, “The teaching process reveals new learning for you since people have different questions about what you’re teaching.  It causes you to stretch in your topic area.”

6. Optimize your skills

Knowing how to make the most of your accounting software is another way you can increase your competitive advantage.  Consider purchasing Universal Accounting Center’s QuickBooks Made Profitable (QBMP), a must-have for QuickBooks consultants. For next to nothing you can use your QuickBooks expertise to attract more clients and increase your bottom line!

80% of small businesses use Intuit’s QuickBooks software.  Once you complete QuickBooks Made Profitable, you will be able to use our proven system to attract more clients with your QuickBooks expertise.  Take advantage of this marvelous opportunity to increase your bottom line.  Order now!

Always be on the lookout for ways to not only maintain, but enhance your competitive advantage.  These 6 simple tips are a great way to get started!

Resource

Halford, Scott.  “5 Tips to Keep You Sharp.” 7 October 2009  Entrepreneur.com

“How Do I Maintain My Competitive Advantage?” 27 February 2007  AllBusiness.com

Work, love and play are the great balance wheels of man’s being.-Orison Swett Marden

Happiness is not a matter of intensity but of balance, order, rhythm and harmony.-Thomas Merton

Many people start a business with their families in mind.  They believe self-employment will provide them with more flexibility, income and free time to spend with those closest to them.  In the beginning however, and much longer if they’re not careful, this is not the case.  And those who run their businesses in addition to working full-time jobs often find their lives become more, not less, hectic.  If you want your accounting practice to improve your livelihood rather than tap it, you must achieve balance in your personal and professional lives. Here are five things to consider:

1. Set boundaries

No business can run 24/7 without the help of a significant support staff.  If the demand requires it, consider hiring a business manager; that just might save your health, your family, and even your business. While you may think you’re doing your business a favor by working long hours, you’re actually setting yourself up for an acute case of burnout.  With or without a support staff, you must set reasonable boundaries that enable you to spend time doing those things you most enjoy.

Just as any business has to establish business hours, so must you.  Ensure that you dedicate time to both your business and your family.  Of course there will be emergencies when you will be required to work long hours in order to fulfill obligations with clients, but that’s the exception, not the rule.  It’s up to you to ensure that you honor these “office hours.”  You may be surprised at how much more you accomplish once you set these boundaries.  You may also be surprised at how much more you enjoy your down time.

2. Practice two-way flexibility

In order for entrepreneurs to experience success, they must be flexible.  This means that you may spend a late night or early morning working for a client when you could be spending time with your family.  But to be truly balanced you must be willing to exercise that same flexibility for your family’s sake; in fact, this is one of the benefits of self-employment.  This two-way flexibility may require you to take a child to the doctor or visit with a teacher when you would otherwise be working.  The trick is in knowing your priorities and being able to juggle both your business and family responsibilities well.

3. De-stress and decompress

Owning your own accounting practice can be a stressful venture.  In order to function at your best, you must take measures to de-stress and decompress.  This means taking time everyday to do something that makes you feel good, like jogging, meditating, or reading something non-work related.  When you give yourself the opportunity to unwind and release tension, you can work at an optimum level, giving your business and your family the best that you can.

4. When possible, involve your family

A good way to spend more quality time with your family is to involve them in your business.  Consider hiring your teenager or enlisting the help of your spouse; this can be a win-win situation for everyone.  Your teenager learns responsibility, you get help with tedious tasks, and you all spend more time together.

5. Enjoy the fruit of your labors

What good is it to work hard for additional income if you don’t occasionally enjoy it?  In order to truly refresh yourself and spend quality time with your family, you need to take a regular vacation and enjoy one another’s company.  Whether you cruise the Caribbean or go camping, it’s important that you spend dedicated time away from work.  In fact, a good time to plan for that vacation is right now before you’ve scheduled your summer away.

It’s important to acknowledge the intricate balance between work and family.  Focusing all your time and attention on the business may help it to grow, but sadly your family will grow as well, only you’ll miss it.  Make a commitment to do what’s necessary to achieve balance in your personal and business lives.  Most likely it will make your business more profitable in the long run.

Financing a Small Business

In order to achieve that desired balance, often we must find ways to make our work hours more profitable.  Becoming a financial consultant can help you achieve that. Our manual, Financing a Small Business, is packed with clear-cut instructions and terrific resource materials that will simplify the creation of a loan application package.  Using the sample loan package included as a model, you can easily help clients apply for a valuable business loan.  Within hours you can begin offering your services as a financial consultant.  Increase your value and achieve balance.  Order your copy now!

Trust can often determine the longevity of a business.  While small businesses may be able to advance for some time using aggressive marketing tactics, customers will not look back after they lose trust in a small business, especially if you provide financial services like tax preparation.  Last week we discussed ways you can help clients avoid an audit, and one of those was by preparing their taxes yourself.  In this week’s article, we’ll look at ways you can secure your position as a trustworthy tax preparer.

As you build relationships with clients, it’s important that you do all you can to maintain their trust.  Here are five steps to securing a client’s trust in your and your services.

1. Remember that honesty really is the best policy.

If your client ever catches you in a lie, or what they perceive as a lie, you have lost their trust forever.  It doesn’t matter how small or big the lie may be. Nothing erodes trust more quickly than dishonesty.  As you interact with clients, you must practice the utmost integrity; it will leave a lasting impression that will secure their loyalty in your services as well.

2. Practice good listening.

Consider how you feel when someone gives you their undivided attention while you’re talking. You feel respected and valued.  As you show empathy and listen to your clients, you’ll demonstrate a genuine interest in their needs which in turn helps build trust.

3. Practice open communication.

When you practice open communication, you are really demonstrating an unwillingness to withhold information from your clients.  In so doing, your business practices become transparent, a quality that reveals your honorable nature.

4. Follow through.

There are some business owners who will make all sorts of promises, believing that promises alone will win customers.  Unfortunately, customers soon lose interest in a company that doesn’t follow-through.  If you tell a client you will do something, you are bound to do it.  Otherwise trust is lost.

5. Don’t gossip.

Clients will watch everything you do and make character judgments based on what they observe.  People with integrity do not gossip.  If your clients catch you speaking ill of someone else, they’ll begin to wonder how long it will take before you start gossiping about them.

When you build a trustworthy business, you earn a level of success you can really feel good about.  Not only that, but in doing so you build relationships with clients that are based upon loyalty and respect.  And that will enable you to retain clients more than anything else you may offer.

In January of last year, the IRS released an article providing tips for tax payers looking for tax preparers.  If you’ve considered adding tax preparation to your service offerings, it’s important to know what the Internal Revenue Service recommends individuals look for when selecting a professional tax preparer:

• Find out what the service fees are before the return is prepared. Avoid preparers who base their fee on a percentage of the amount of your refund or who claim they can obtain larger refunds than other preparers.
• Only use a tax professional that signs your tax return and provides you with a copy for your records.
• Avoid tax preparers that ask you to sign a blank tax form.
• Choose a tax preparer that will be around to answer questions after the return has been filed.
• Ask questions. Do you know anyone who has used the tax professional? Were they satisfied with the service they received?
• Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Find out if the preparer belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.
• Determine if the preparer’s credentials meet your needs.  Does your state have licensing or registration requirements for paid preparers?  Is he or she an Enrolled Agent, Certified Public Accountant, or Attorney?  If so, the preparer can represent taxpayers before the IRS on all matters – including audits, collections, and appeals.   Other return preparers can represent taxpayers only in audits regarding a return signed as a preparer.
• Before you sign your tax return, review it and ask questions.

Enroll in UAC’s Professional Tax Preparer (PTP) Program for the Proper Training

Universal’s tax training can help you become a qualified and designated Professional Tax Preparer.  You’ll acquire expertise that clients appreciate while increasing your bottom line, especially during tax season.  Don’t wait to advance your career by enhancing your service offerings.  Enroll now in the Professional Tax Preparer Program.

Resource

IRS.  “Tips for Choosing a Tax Preparer.” 13 January 2009  IRS.gov

According to Shwiff, Levy & Polo, a CPA firm in San Francisco, “Small business owners often do not realize their tax preparers, unlicensed and licensed, may be putting them at risk.  Both may give no advice-or even worse, incorrect advice-about complex tax laws, and only input numbers the owner provides into a tax preparation software program.  The small business owner in effect serves as their own tax advisor, while still paying the tax preparer for tax counsel.”

In concern, this firm issued five tips, which were published on WebCPA, to help small business owners avoid an audit. Here we review these tips in order to enable you better serve your clients by helping them avoid an IRS audit of their own.

1. Encourage your client to use accounting software to track their finances.

If you’re doing this for them, then they’re in good shape.  If you’re not, it’s important that you strongly recommend that they use this software to consistently input all financial transactions.

2. Verify that the tax preparer is licensed.

While legislation to regulate paid tax preparers is pending, currently unlicensed tax preparers are not required by law to have any tax training, or even a high school diploma, for that matter.  Scwiff, Levy & Polo recommends that clients use licensed tax preparers.  At Universal Accounting, we would suggest securing one that has received the Professional Tax Preparer designation.

3. Submit a list of questions.

The tax firm recommends that small business owners, “Submit [to their tax preparer] a list of questions to get the additional missing information and prove that review and analysis is being conducted.”

4. Secure proper documentation.

Have your clients require tax preparers to validate large deductions by securing the necessary documents from banks and brokerages.  This would be valuable documentation that could work to their benefit in the event of an audit.

5. Update the financial database.

After the tax return has been prepared, you client must require the tax preparer to provide a list of the adjusting journal entries so they can be added to the business owner’s financial database.

When you act as an accountant and financial advisor to your clients, you’ll find your value increases significantly when you can help them avoid an IRS audit.  In fact, it would help both you and your client tremendously if you received the proper training to become a tax preparer yourself!  That’s why we’ve added one final step to this already helpful list:

6. Enroll in the Professional Tax Preparer program.

Your practice will become even more appealing when you add tax preparation services to your menu.  Not only that but many tax preparers make more money in the months leading up to the April 15 tax deadline than others make all year long! Since all individuals and businesses, small or large, are required to file taxes, tax preparation is a respected skill that will always be in demand. And many of your current and prospective clients would probably be happy to have you file their taxes as well as perform the standard accounting services you currently provide.

Also consider who your clients will trust to file their taxes.  Countless individuals are scammed each year by people who claim to know what they’re doing.  More and more are becoming weary of tax preparers without any credentials.  The Tax Preparer Designation, mentioned previously, will put many of those individuals at ease, assuring them that you have been properly trained in tax preparation.

Make a New Year’s resolution to acquire the expertise necessary to become a Professional Tax Preparer.  UAC’s Professional Tax Preparer (PTP) program will not only give you hands-on training in completing full individual (1040) and business returns (1065, 1120, 1120S), it will also provide you with the following:

• 20 hours of valuable video instruction
• 2 instructional manuals
• Step-by-step instruction in becoming a sole practitioner
• One year of follow-up support from expert tax preparers
• The opportunity to earn valuable professional certification
• Our iron-clad, risk-free guarantee

Increasing your service offerings could make you the premier financial provider in your area.  Enroll in the Professional Tax Preparer Program today, and improve your competitive advantage while securing your business standing in the local community.

Resource

“Tips for Small Businesses on Avoiding an IRS Audit.” 11 November 2009  WebCPA

The worth of a book is to be measured by what you can carry away from it. - James Bryce

Books are the quietest and most constant of friends; they are the most accessible and wisest of counselors, and the most patient of teachers. -Charles W. Eliot

The man who does not read good books has no advantage over the man who can’t read them.  – Mark Twain

What better way to start a New Year than with a good book designed to help improve your business, your career and your future?  Here is a list of popular publications from which you can select your next read.

Driven: Business Strategy, Human Actions, and the Creation of Wealth by Joel Litman and Mark Frigo (Strategy and Execution , January 2008)

This book is based upon a 10-year research project on thousands of businesses that have succeeded, failed and maintained mediocrity.  Driven examines how a business’s plans and actions determine it trajectory and introduces the Return Driven Strategy as a “framework for business analysis and planning prioritization.”  This book contains helpful case studies and practical advice in evaluating critical business decisions.

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renee Maugorgne (Harvard Business Press, February 2005)

Using the metaphor of an expanding and competitor-free blue ocean, this book examines how some businesses ensure their success by avoiding “red oceans” which have been thoroughly explored and are rife with competition.  Blue Ocean Strategy encourages innovation while focusing on creating and capturing new demand rather than competing for an existing market share.  This book includes examples from Southwest Airlines, Cirque du Soleil, Curves, and Starbucks.

The E-Myth Revisited: Why Most Small-Businesses Don’t Work and What to Do About It by Michael Gerber (HarperCollins, March 1995)

While this book may have been written 15 years ago, its continued status as a best-seller is an indication of its value to small business owners everywhere.  The author himself explains, “If you own a small business, or if you want to own a small business, this book was written for you.”  Gerber dispels startup myths and misconceptions.  He also walks readers through the different stages of business developments and makes the distinction between working on your business and working in your business.  Some claim the principles discussed in this book have already qualified it as a classic and must-read for all entrepreneurs.

Good to Great: Why Some Companies Make the Leap…and Others Don’t by Jim Collins (HarperBusiness, October 2001)

A prequel to Collins’ bestseller Built to Last, Good to Great is based on research of 1,435 companies to determine what characteristics successful companies share.  That list is narrowed down to 11 businesses that made substantial performance improvements over the course of time, including Fannie Mae, Gillette, Walgreens and Wells Fargo.

In the Black: Nine Principles to Make Your Business Profitable, by Allen Bostrom (Universal Accounting Center, 2005)

Designed specifically for the small business, this book contains 9 practical principles that will enable you to improve your business’s profitability.  And you don’t have to wait to complete the book before you can start applying them.  Working from personal experience and the experience of his father, President and CEO of Universal Accounting Center, Allen Bostrom, shares tips proven in countless businesses just like your own.  If you would like to run a more synchronized practice where all three business functions (accounting, marketing, and production) work together, this is the book for you.  See why In the Black has become a bestseller on Japan’s amazon.com.  Order your copy today!

As the New Year approaches, many professionals become interested in finding more efficient ways to get the job done.  In BNet’s crash course entitled “The Quick-and-Dirty Guide to Getting Things Done,” author Kim Girard gives four tips on finishing projects twice as quickly.  They work well for anyone in a managerial position tasked with seeing a project through to completion, a description that applies to anyone who is self-employed.

Practice Bookend Management

This tip is taken from a book entitled, The Lazy Project Manager: How to Be Twice as Productive and Still Leave the Office Early. Author Pete Taylor argues that failing projects generally don’t get the necessary attention at the onset.  A manager needs to launch the project in the right direction and with the proper amount of momentum.  For this reason, you should pay particular attention to the start of a project, and then manage with the same intensity at the project’s end.

Note: Decide upfront how you will manage changes to the project.  Depending on the size of your operation, this may be as simple as acknowledging the change and making the necessary revisions to your timeline and subsequent steps.

Avoid E-Mail Abuse

Choosing to use email as your communication method of choice with team members can be dangerous.  If a large volume of emails are being sent and received, people tend to disregard them, assuming that much of what is being communicated is tedious and unnecessary.  Establish a system of communication that is clear for everyone.  Lynda Bourne, a blogger for the Project Management Institute, suggests that you only use email for items that require immediate attention.  All documents related to the project can be deposited somewhere else, for quick and easy reference, like a wiki or shared drop box.  All other communiqué can be accomplished via phone or face-to-face contact.

Put Out Fires Quickly

The longer you wait to resolve problems, the more they can interfere with your project’s success.  In order to avoid that, Girard recommends implementing Scott Berkun’s 7 steps in getting a project back on track, as taken from his book entitled Making Things Happen:

1.    Calm down

2.    Evaluate the problem in relation to the project

3.    Get the right people in the room

4.    Explore alternatives

5.    Make the simplest plan

6.    Execute

7.    Debrief

Perform a Postmortem

It’s important that you always perform an assessment after the project has been completed.  What worked well?  What needs improvement?  Girard suggests identifying three of each.

Note: Set some ground rules before you begin.  For example, ban usage of iPhones and BlackBerrys during this meeting, and ensure that everyone has a right to voice their opinion as long as they focus on problems and not personnel.

When you practice these four tips, you are better equipped to complete projects sooner.  Decide to implement them now, and enjoy a more productive New Year.

Increase Your Profitability as Well

There are two ways you can increase your income.  1) Work more efficiently, and 2) increase your service offerings.  Now that you know how to accomplish number one, consider working on number two.

By law, every small business must perform certain accounting functions.  This makes small-business accounting a great niche market.  And in this day and age of economic uncertainty, business owners don’t want to turn their finances over to just anyone.  They feel much more comfortable leaving their accounting to a certified professional: a Professional Bookkeeper (PB).

Set a New Year’s resolution that you can easily accomplish this year by enrolling in the Professional Bookkeeper program and earning your PB designation.  Not only can you earn valuable certification that will put prospective clients at ease, but you will also learn valuable accounting skills that will help you better serve your small business clients.

Here are just a few things this program enables you to do:

• Master accounting for retail and wholesale businesses
• Determine and establish the accounting method that best fits any given business
• Set up an efficient system for a “ma & pa” manufacturing company
• Track job costs simply and efficiently for a construction company
• Effectively handle flooring for an inventory-financed business
• Confidently consult with business owners on key business issues
• Enter data quickly and accurately
• Prepare payroll like a seasoned pro
• Avoid costly IRS penalties
• Spot and avoid dangerous trends before they become tragedies
• Save a company thousands of dollars in auditing costs
• Start your own bookkeeping and accounting business, using a step-by-step approach
• Acquire clients quickly and cost-effectively

One course will enable you to accomplish all that and more.  Talk about a powerful resolution!  Take advantage of the New Year and earn valuable certification that will help you advance your accounting practice and increase your bottom line.  Enroll today!

Resource

Girard, Kim.  “The Quick-and-Dirty Guide to Getting Things Done.” BNET Crash Course

10 Steps in Getting What You Want

In business you don’t get what you deserve, you get what you negotiate. - Chester L. Karras

You must be fully prepared to lose a great deal in order to make a great deal. – Anonymous

My father said: ‘You must never try to make all the money that’s in a deal.  Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals. – J. Paul Getty

All business owners must be prepared to negotiate at some time in their careers.  In fact, successful professionals must negotiate quite often in order to increase their profitability.  To help you master the art of negotiation, we’ve designed this two-part series that will share 10 steps in getting what you want.  Last week, we presented the following five steps:

1.    Prepare

2.    Time

3.    Strategize

4.    Listen

5.    Leverage

This week we’ll cover the last five:

6. Offer

It’s important that both parties find the offer to be clear and specific.  Michael Sanibel, in his article on Entrepreneur.com, explains, “The basis of the bargain should include: offer prices (in proper denomination), statement of work (scope), identification and quantities of goods or services, delivery schedule, performance incentives (if any), express warranties (if any), terms and conditions, and any documents incorporated by reference.”  Once both parties clearly understand and agree to this offer, which should be put in writing, you can move forward.

7. Anticipate

Experienced negotiators realize that the first offer is a reference point and is rarely accepted.  You should anticipate compromise, for that is a key element in negotiation.  In your research, you should have come to understand and appreciate what the other party wants and needs in order for this deal to be acceptable.  In that, be prepared to revise the original offer until it appeals to both parties.

8. Aim

That being said, it’s important to aim high.  Sanibel suggests you shoot for a win-win solution, where both parties are satisfied.  The Sloan Brothers and Daniel Kehrer, in their articled entitled “Ten Techniques for Better Negotiation,” explain, “Another tenet of negotiating is ‘go high, or go home.’  …As long as you can argue convincingly, don’t be afraid to aim high.  But no ultimatums, please.  Take-it-or-leave-it offers are usually out of place.”

9. Hold Firm

Most people know that when buying a car from a salesman you must be willing to walk away from the car of your dreams in order to secure the best deal.  The same idea applies to your business negotiations.  Max Markson once said, “Quite often, your indifference can be the greatest negotiating weapon you have.”  While you may care a great deal about this deal, you must hold firm to those things that matter most to you and be willing to step away if negotiations stray too far from that.

10. Close

It’s important that you recognize the point at which both parties are nearing a successful close.  Be posed to shake on your deal and follow up with all the necessary documents.

Negotiation is an art that takes considerable time and practice to master.  However, following these 10 simple steps can make the process much easier, helping you navigate to a more satisfying conclusion.

Visit Universal’s Free Resources

Universal Accounting Center (UAC) would love to see your practice succeed.  That’s why we offer your business the most valuable resources available.  Feel free to take our virtual UAC Tour to learn more about our training programs that will enhance your practice and your bottom line.  Or visit our free accounting and tax resources.  Either way you’ll want to bookmark the UAC site and return continually to improve your business.

Resources

Sanibel, Michael.  “The Art of Negotiating: A Practical Guide to Getting What You Want, When You Wants It, and at the Price You Want.” 24 August 2009  Entrepreneur.com

Sloan Brothers with Daniel Kehrer.  “10 Techniques for Better Negotiation.” 2005  Yahoo! Small Business