Wise Budgeting Tips

As an accountant you probably think you’ve got your budget under control.  You know numbers and watch your spending to ensure that you are managing your money well.  But unless you’re applying crucial budgeting strategies, you’re not using this valuable tool to its full advantage.  Here are 5 tips that will help:

1. Ensure your budget aligns with your business strategy.

This may seem obvious, but in the day-to-day tasks required in business management, strategy may be forgotten.  There are fires to put out, emergency expenses to pay, and last-minute purchases to make.  So unless you’re vigilantly monitoring your outflow, your strategy may be nickel and dimed into extinction.

If you don’t yet have a strategy, now is the time to develop one.  Does your business require more aggressive marketing techniques?  Are you attempting to grow your firm by hiring a support staff?  Or do you want to focus on retaining current clients?  Whatever your strategy, you should devise a budget that supports and sustains it.

2. Assess your Chart of Accounts.

As an accountant you are very familiar with the Chart of Accounts.  The Chart of Accounts enables you to set up categories that align with your management strategies.  It also enables you to establish a healthy balance between control and responsibility regarding business spending.

3. Establish accountability.

Anyone responsible for spending within your business needs to be accountable for his/her choices.  You may currently be the only person responsible.  However, it’s important that you acknowledge and assess your spending and then make any necessary changes.  You may determine that your budgetary items are best distributed among control areas like marketing, skills development, client retention, management, etc.  This may provide you with more control over outflow.

4. Regularly review your budget.

Establishing a budget and then ensuring that it aligns with your business strategy is only part of this valuable process.  The true benefit of budgeting comes when you regularly review your budget with key players in your business.  In your review you can compare budgeted expenses with actual expenses and discuss discrepancies.  You can also talk with those responsible for various expenses and see how they might revise some of their spending choices.  This is also a good time to implement necessary changes and assess any changes implemented since your last budgetary review.

5. Revise as necessary.

A budget is not set in stone.  As mentioned in the previous tip, as you assess and review your progress it’s important that you make necessary changes.  In fact, that’s the beauty of budgeting.  As you monitor your income and outflow, you can make changes that will influence the future profitability of your business.

As an accountant you may assume that you’ve been using this tool to its full advantage.  But if you haven’t been applying the above tips, you may be missing out on some of the best benefits of budgeting.

QuickBooks Made Profitable

Budgeting isn’t the only tool you can use to increase your business’s profitability.  Our program, QuickBooks Made Profitable, will teach you just how to use QuickBooks accounting software to attract and retain more clients.

Nearly 80% of small businesses use Intuit’s QuickBooks software.  While other programs may be useful, QuickBooks has definitely captured the small business market.  Mastering QuickBooks will not only enable you to better manage your budget and keep more efficient records, but it will also help you teach your clients how to use the software so that you can get the information you need which makes your job much easier.  This program will teach you how to leverage your time while saving clients money in taxes and helping them increase their profits.  What client wouldn’t be interested in that?  We’ll teach you how to use this valuable software package to generate more income!

Don’t wait to grow your business and experience the success your budget will certainly help you achieve.  There are countless potential clients out there in need of these specific services.  You can be the one to provide them.  Order QuickBooks Made Profitable today!

Some people are under the impression that leaders are bossy, manipulating, and uninterested in the ideas and opinions of their subordinates.  While there may be countless supervisors who do indeed fit this description, that does not make them good leaders.  As a small business owner who may manage a staff of employees or is looking to hire employees sometime in the future, you should know what makes a leader truly effective.  Here are seven characteristics you should consider developing:

1. Visionary

Theodore M. Hesburgh, retired president of the University of Notre Dame, once said, “The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet.”  Leaders envision what can, but hasn’t yet, been achieved.  They have a clear picture of where they want their business to go and how it can get there.  Unwilling to settle for the status quo, leaders are striving for improvement, progress, and continued and amplified success.  More than that, good leaders can share this vision with their staff and communicate it in a way that makes it clear, reasonable, and most importantly, inspirational.

2. Ethical

Trust is earned, and unless a leader practices good ethics and has integrity, it will be difficult for a staff to trust him/her.  Honest, hard-working, reliable, equitable, and respectful are all characteristics of an ethical leader.

3. Enthusiastic

Enthusiasm is contagious and when you’re passionate about what you do, generally your employees will feel that enthusiasm and begin to reflect it in their own work.  As you interact with staff you must share your passion, enthusiasm, and excitement for your business.

4. Confident

It’s hard to follow a leader if he/she does not appear confident.  You must not only feel confident in your managerial approach, but you must also exude confidence.  However, confidence doesn’t equate to blind arrogance.  It does, however, communicate a cool assurance that you have the resources and know-how to get from point A to B.  Only when you have confidence will employees be willing to follow you there.

5. Motivational

If you possess vision, enthusiasm and confidence, motivating your staff will probably come easily. Leaders must be conscious of every communication they share with employees and ensure that they are positive and inspiring.

6. Open-minded

No one likes a smarty pants.  You must be willing to listen to your employees and the feedback they have to offer.  You might be surprised at the good ideas they have regarding your business and its profitability.  Be willing to listen to what they have to say and explore the possibility of their ideas.

7. Personable

Good leaders are approachable and easy to communicate with.  You should practice an open-door policy in relation to your employees and those things they would like to discuss with you.  Being kind and considerate to them will promote good feelings in the workplace.

While you may not feel like a leader right now, you can become one that employees would be proud to follow.  Evaluate your current leadership style and see how you might implement two or more of the above traits.  And give yourself the time to learn and improve.  You may be surprised at the natural leadership instinct within you.

If you would like to grow your business to sustain more employees, you should consider enrolling in the Universal Practice Builder Program.  This course will teach you how to market your unique skills and attract qualified clients, all while increasing your bottom line and improving your marketing strategies.  To learn more, visit our website and listen to testimonials of our very own graduates, sharing what they found most valuable in this program.

Take Our 9-Question Quiz to Find Out

Someday is not a day of the week. -Anonymous

To think too long about doing a thing often becomes its undoing.-Eva Young

Procrastination is opportunity’s assassin.-Victor Kiam

Everyone procrastinates at one point or another in their lives.  But chronic procrastination can hinder your professional success.  Whether you are interested in earning a promotion, starting your own business, or growing a current business, procrastination is generally at the root of most failure.  You can change the course of your future by overcoming procrastination.  But first you must determine whether or not you are a chronic procrastinator and, if so, determine what it may be costing you.

1. Do you make and miss commitments?

Many procrastinators find ways to postpone or avoid commitments they’ve made.  Generally they are enthusiastic about those commitments when they first make them and can envision how they might enhance their lives.  But for whatever reason, by the time aforementioned commitment occurs the chronic procrastinator has found reason to avoid it.

2. Do you talk the talk but not walk the walk?

There are a variety of reasons why individuals procrastinate.  Some are afraid of failure, others are afraid of success and still others may be plagued by a number of reasons even Freud may not comprehend.  Regardless of the reason, individuals rarely procrastinate because they lack the ability and know-how.  Because of this, many procrastinators have oodles of advice that they fail to apply in their own lives.

3. Are you missing out on the life you once imagined?

Regret is often associated with procrastination.  If you find yourself grieving the life you once imagined yourself enjoying, you may have let procrastination get the best of you.  However, don’t despair.  You always have time to turn things around in order to accomplish your greatest dreams.

4. Do you make and keep daily goals?

Truly successful individuals realize that they must continually set and accomplish goals.  They are able to break projects down into management tasks that can be completed on a daily basis.  If you feel overwhelmed by everything on your to-do list and suffer from a lack of direction and accomplishment in your daily life, you may be procrastinating your workday away.

5. Are you currently working towards an improved future?

If you have a dream but are not working to accomplish that dream, then you are procrastinating a grand and glorious future for yourself.  Regardless of what it may take to accomplish your dream, unless you are currently doing something, even if it’s small, to achieve your dream, it will forever reside in your future.

6. Are you often disappointed?

Chronic procrastinators are often depressed and disappointed.  Their lack of success plagues them and often their families.

7. Do you sacrifice long-term happiness for short-term comfort?

Long-term happiness often requires sacrifice and hard work.  Procrastinators often fool themselves into thinking instant gratification is what they really want.  But when you consider that a little hard work and sacrifice can change the course of your future for the better, it may be easier to forgo the short-term comfort.

8. Are you easily distracted?

Procrastinators often find ways to put off doing important tasks.  Whether they become distracted by email, television, housecleaning, or phone calls, they often welcome the interruption.

9. Do you dream often but take action less?

Procrastinators often dream of a bright and glorious future but rarely take action to turn those dreams into realities.

If you answered “yes” to seven or more of the above questions, chances are you are a chronic procrastinator.  And if you do procrastinate, you are probably experiencing continual disappointment and professional dissatisfaction.  But don’t fret; just because you’ve procrastinated in the past doesn’t sentence you to a long and dissatisfying future.  You can take action and overcome your procrastination.  Join us next week when we will discuss tips for eliminating those self-destructive procrastinating tendencies.

Stop Procrastinating, Today!

If you’ve considered enrolling in our Professional Bookkeeper Program but have procrastinated in making a decision, telling yourself you want to learn more first, today is your day!  When you order our video, Introduction to the Professional Bookkeeper Program, you will learn all about this priceless course and will even have access to sample modules, demonstrating the highly effective instructional techniques we use.  For less than $10, you can add this video to your reference library.  Or you can watch it online for free.  Stop procrastinating today.  Order the video now!

In December 2007, Entrepreneur.com published an article entitled “Test Run” which shared ways to perform quick feasibility testing on a business idea. Jake Rockwell, owner of Rockwell Products LLC in Medford, Oregon has his own approach in determining whether or not a business venture will be successful. He takes the following three steps:

1. Check for limited competition. You want to ensure that the market isn’t already saturated with accounting practices. Take a look in your local phone book to see how many accountants are listed. Also consider whether they offer any specialized services, like small-business accounting or financial consulting, that you hope to offer. The more unique and valuable your services, the more feasible your business.

2. Consider the likelihood of returning customers. Accounting services are great because all businesses are required by law to perform various accounting tasks, and the need for this service is long-lasting. Businesses need payroll services performed on a monthly and even semimonthly basis. Most accounting tasks as like this, which means most of your clients will be regular clients.

3. Consider how management-intense the venture will be. You must consider how much of your time will be dedicated to managing the business as opposed to performing billable hours. If the venture requires enough managerial oversight you will have to hire staff to which you must delegate various tasks. Luckily, when first starting an accounting practice, you can work from your home and manage your business without much effort. However, depending on your visions for growth, you may eventually need to expand your efforts to include a rented office space, partners and a support staff.

In addition to Rockwell’s three feasibility steps, Entrepreneur.com recommends that entrepreneurs get feedback from prospective clients. As you ask these individuals what they want from their accountants, whether or not they’re satisfied with their current accountant, and how much they’re willing to pay to get the services they need, you will have a better idea of how sustainable your business idea is and how you might tweak your services in order to achieve your profitability goals.

The Social Enterprise Reporter, in an article entitled “The Quick Feasibility Test,” shares Rolfe Larson and Andy Horsnell’s four criteria used to test for feasibility:

• Strategic alignment-Do you want to do it?
• Operational-Can you do it?
• Marketing-Will customers buy from you?
• Financial-Will you achieve your profitability goals?

They also suggest a graduated series of feasibility tests that take you from self-assessment to a more researched-based, data-driven process of determining whether your business is earmarked for success.

Whether you plan on starting a business from scratch or hope to add new services to a current business, feasibility testing can help you determine whether or not the venture is worth the effort, and if so, how to best approach it.

Financing a Small Business

If, after performing feasibility testing, you feel it’s time to start your own practice but would like to take out a small business loan first, you can order Universal’s valuable manual Financing a Small Business which will walk you through the process of preparing a loan package. This 126-page manual includes clear-cut instructions, valuable resources, and sample loans that provide valuable models which will make the process of applying for your own loan much easier. Order now! This manual will help you start your own business today while enabling you to consult countless clients on the same process in the future.

References

Hendricks, Mark. “Test Run.” Dec. 2007 Entrepreneur.com

Larson, Rolfe and Andy Horsnell. “The Quick Feasibility Test.” 13 Feb. 2005 Social Enterprise Reporter

Larson, Rolfe and Andy Horsnell. “Quick Feasibility Screen.” www.rolfelarson.com

Larson, Rolfe and Andy Horsnell. “RLA Quick Feasibility Test.” www.rolfelarson.com

Discover How Cracking a Book May Increase Your Bank Account

Steven Covey’s seventh habit for highly successful people is better known as “sharpening the saw” and refers to a number of ways in which you can renew yourself to become a better professional. In Japan they call this “kaizen,” a term that refers to the constant improvement of oneself.

Even the most dedicated accountant can get a little burned out working day in and day out for their practice. In order to rejuvenate and rededicate yourself, you must look for ways to sharpen the saw. In Steven Covey’s example, he explains that the long-term use of a saw, let’s say nine to five every weekday, can dull the edges, making it more difficult to be productive. In order to sharpen the saw you must sit back and take out your whetstone, attending to your craft without necessarily performing your craft.

The Value of Reading

Reading is a great way to sharpen the saw. It exposes you to countless new ideas and enables you to become a better, more thoughtful professional. In fact, the more books you read the sharper your saw becomes and the better you perform your accounting functions. And not only that, but the better business owner you’ll be.

In one job I held employees were required to spend 30 minutes a day reading the latest news on our discipline in order to be informed of current and even cutting-edge techniques. Not only did it keep me abreast of current events, but it helped me learn new approaches that I could incorporate into my day-to-day work activities. I became more efficient and more informed as I performed my duties. It also enabled me to sound intelligent when talking to peers about my profession.

We suggest that you try to do the same. Schedule 20 to 30 minutes a day, during which you will search books and magazines that will enable you to become a better financial professional. Perform searches on Amazon, ask colleagues and peers for recommendations, and research the literature getting the most buzz. The more you read the longer your reading list will become. Don’t get discouraged; just start at the top and work your way down.

Our Recommendation

The best books for you may be those focusing on running a successful small business of your own. Not only will it help you better manage your practice, but it will also help you consult your clients in doing the same.

Allen Bostrom, president and CEO of Universal Accounting Center has written a book designed to help any and every small business become more profitable, and it’s called In the Black: Nine Principles to Make Your Business More Profitable.

Allen’s father, Alf, made a living turning small businesses around. In fact, he was called the Turnaround King. For a small percentage of a business’s future profits, Alf would their business around, often yanking them from the brink of bankruptcy. In doing so, Alf learned many key principles about ensuring a business’s success. He passed those on to his son, Allen, who also has extensive experience helping small businesses thrive. Using his father’s principles and those he developed himself, Allen wrote In the Black.

In the Black presents 9 practical principles that you can begin applying to your practice, or your clients’ businesses, immediately. It’s a quick read that will enable you to see how, exactly, you can increase a business’s profitability. And as an accountant, you can use this information to enhance your practice, becoming your clients’ Profit Expert.

If you would like to enhance your business, and your bank account, by reading books that will sharpen your saw, start here. Order In the Black today and have 9 principles, at-the-ready, that you can use to enhance your accounting practice. This small investment will make a big impact on your future.

The Successes and not so Bright Spots of the Year

This time of year is often a favorite for many who look forward to starting anew and looking back at the accomplishments over the last year. As your children may be counting down the days until that morning of anticipation and wonder, we in the accounting profession have a chance to take a step back and look over the year that we just had.

For some out there, it’s been a year to remember with fantastic growth in the amount of clients they have contracted with; increased their billable hours to a point where “living comfortably” is a good description of their current state. The state of their business is flourishing and everything is clicking on all cylinders like a finely tuned engine chugging along nicely.

For others it was a year of trial and error, where you had some successes, getting that larger client, finding that new way of doing things that shortened the time you spent on this or that particular task. But it was also full of mistakes, and of errors that were caused by inexperience, or simply from not knowing what to do. Mistakes that inevitably took away from the company’s bottom line and resulted in losing a client or two along the way.

Yet still for others this was a trying year, one that would be eligible for a “mulligan” if it were a round of golf. Although the effort was made, things and accounts just didn’t seem to come your way. It has now become very clear that drawing on additional Accounting and Bookkeeping experience is what is needed. This do-over year was full of pratfalls and blunders that bring the toughest to their knees and yet you survived it, ready for a new year.

However this last year was for you, this next year is a year of anticipation and wonder. You can make a great situation greater, a good thing much better and turn around the bad results into the learning experiences that they were and incorporate those lessons for this next upcoming season.

Here are a few things that help every company to take stock of how their year went.

• List the changes that happened to the practice of last year from the year previous
  • Additions or subtractions of clients, employees, services offered, and industries entered.
  • Any additions or subtractions of office equipment or capabilities of doing business.
• As all of us are inclined to do, get down to the dollars and cents of what happened in the year.
  • When you were more profitable than other times.
  • When you could have been more profitable and weren’t.
  • What was the real cost and profit of the practice over the year.

The success of what your practice does is on your capable shoulders. You are the deciding factor in how the business is run and what is accomplished throughout the year. Decide today how and what your business will accomplish for the upcoming year so you can take the steps that will bring you the success you look for. After you assess the right and wrong moves you made this year, resolve to continue your success and to gain more this next year. Universal’s Accounting and Bookkeeping web site can help you keep yourself on track. Click here and bookmark the site for future and continued referencing as we share and place what we share on that information-filled site.

Eight Time Management Secrets for the Accounting and Bookkeeping Home Business

You took the leap of faith and started your own Accounting / Bookkeeping business, and now you have enough clients to keep you busy for a long time. But you’re starting to wonder how you’ll keep up with it all, providing your clients with quality service while having that time to yourself you’ve always dreamed about. So how do you manage your business so that it doesn;t manage you? Here are eight time-saving tips to help you manage your business and recover your life.

1. Better Organize Your Home Office

If you’re like most people, you have wasted seconds, minutes, hours in precious work time hunting for that one invoice, file, or perhaps even the stapler. Your mother probably taught you that there’s a place for everything and everything should be in its place. That’s sound advice. If your office is well organized, you’ll waste little time hunting things down. While it may seem a daunting and time-consuming task at first, you’ll save yourself lots of time in the end if your organize your home office now (for more help on this, read our two articles: “Organizing Your Home Office Part I” and “Part II“).

2. Templatize

How many repetitive tasks do you do in one day? If you’re wasting time recreating the same documents or sending the same types of email, it’s time to standardize some of these tasks. Create form letters, standard documents, and redundant text for typical, lengthy emails. This should save you time, and because time is money in this business, you’ll be able to spend that saved time either making more money or enjoying what you’ve already made.

3. Punch The Clock

Okay, okay. So you quit your day-job so you wouldn’t have to punch the clock anymore. But the truth of the matter is if you don’t set your own hours and keep them, you’ll find yourself on the job 24/7. Generally, when working a 9 to 5 job you only work past five when there’s an emergency; do the same while working for yourself. Set some rules right now. For example: “I will work from 5AM to Noon, Monday through Friday and I will only work overtime when…” Be specific. Otherwise you’ll find that your work is managing you rather than the other way around. You’ll be amazed at how this will help you to work smarter. You may be wasting two hours everyday simply because you have them to waste. Also let your family know what your working hours are. If they know that you need to honor your business hours in order to honor family time, they’ll be more likely to give you the time and space you need (as long as your respect that time set aside for the family).

4. Plan Daily

The old adage goes, ” If you fail to plan, you plan to fail.” How true that is! Take a few minutes every morning to review your schedule and plan your day. Take a few minutes when you are wrapping up work in the evening to plan your next days activities. Whenever you do it, do it daily, this time will go far in helping you use your time more effectively.

5. Prioritize Tasks

Just last week I spent 5 hours on a project I felt strongly about, but when I looked over my accomplishments later, I realized I hadn’t finished a task that was more important and timely. When we don’t prioritize our tasks, we run the risk of putting a lot of effort into something that isn’t crucial. By planning daily you will be able to find that the prioritization gets easier to do.

6. Avoid Procrastination

Procrastination is the great time-killer. All of us have had our bouts with it one time or another. It would be interesting to count up all the time wasted simply by procrastinating the essential tasks. How much time and energy do we spend worrying about one of those important to-do items? How often do we distract ourselves with silly busy work that doesn’t get you anywhere? Stopping short of diabling the game of solitaire on your computer, you need to fight the urge to delay the “unpleasant” tasks of the job. Take a deep breath and procrastinate no more. Delve into the task as soon as you can, with the attitude that it is as pleasant as the most simplest of tasks. And it will soon become that.

7. Become a Speed Reader

We’re not kidding. Some of us are slow readers, and lots of time could be saved in learning how to locate significant data quickly. It also helps us to keep on top of information that is crucial to our success in the accoutning and bookkeeping profession. Just think of it, how much reading do we do each day? If we could cut our time we spend on that and still get the same benefit, why not work to gain that reading skill?

8. Log Interruptions

Everyone in business is interrupted countless time a day. Some of those interruptions help grow your business (like clients who call with work for you to do). But some interruptions are unecessary and counterproductive to the working environment. If these can be anticipated, and handled in a timely manner, you will have a step up from the rest who cannot. We would suggest for those who would want to be better at handling the interruptions of their day to take a small pad of paper and note each interruption for one week. Be sure you note the time, date, interrupter, and the subject of the interruption. Once you have the information, you can evaluate it. Which interruptions could have been avoided? Which were of no value? Perhaps you have someone calling you for information that you could teach them to find themselves? While the teaching moment may cost you an hour now, it may save you hours in the end.

We all need to be aware of our time and how we spend it. Money is time and time is money in what we do, and we would need to stay on top of those things that are keeping us away from making what we could if we were just that much more organized. If you are able to do that, then the time spent working is more effective (and profitable), the time spent on them is minimized, and you will be able to enjoy that free time doing what you want to do when you want to do it.

If you are looking to become trained as a Professional Bookkeeper, and be able to handle your time better with the time-saving tips contained in the training program, click here to find out more

Become a Professional Bookkeeper today.

The hectic holiday season is tame compared to the financial Year End most accountants have to deal with. The year-end financial statements are the most important reports accountants issue. They are used for tax preparation, future reference, and decision making more so than any other monthly reports accountants prepare. For that reason you need to spend more time making sure you are correctly reflecting accurate information. But there are some things that can make it easier.

Accounting Software

Steven Cohen, managing director of Softline Pastel, says, “Yet, however intimidating this task may seem, automated accounting software applications have made the ordeal simpler, if a systematic method is followed. In addition, accounting software vendors are keenly aware of the stresses of Year End processing and accommodate clients by allowing them to proceed with the new financial year, while backdating audited financial adjustments on the previous year.”

With QuickBooks, the leading accounting software for small business, setting a closing-date will help with Year End accounting. QuickBooks also includes a Year-End Checklist to walk you through keys tasks. You can access this feature by clicking “help” and then choosing “Year-End Guide.”

Year-End Accounting Checklist

Sometimes it helps to have a checklist to follow in order to complete crucial Year-End Tasks. Here are a few things to ask yourself when doing your Year End financial statements.

• Does my general ledger bank balance reconcile to the bank statement?
• Are there any accounts receivables that are worthless and should be written off?
• Is my balance in Allowance for Bad Debts a reasonable estimate of potential write-offs?
• Is the company’s inventory balance correctly stated?
• Are there inventory items that cost more than they’re worth and should be written down to their market value?
• Does the company still have all the fixed assets?
• Is my depreciation correctly recorded for those fixed assets still in the company’s possession?
• Did I amortize goodwill and franchise fees?
• Are there any prepaid items that need to be adjusted such as prepaid insurance?
• Have all assets been reviewed for accuracy?
• Have we recorded all of our payables?
• Do the payroll tax liabilities coincide with our quarterly reports?
• Do the balances in the notes payable accounts (loans) agree with what the banks say we owe?
• Are there other debts that have not been included on the books?
• Are there debts on the books that no longer exist because of forgiveness or oversight?

Finally, the last step of the year-end process is to check your Sales, Cost, and Expense accounts. Compare them to prior years to see if any increase or decrease is reasonable. If you run across some significant changes, you may want to look at the general ledger for that account to ensure the entries are legitimate.

As you follow this year-end process you will be amazed at how much you learn. You’ll see trends and practices that will help you in consulting with the client and help him/her run their business more effectively.

Meeting with Client

Once you have completed this list, and before putting the books away for the year, make sure you run the financial statements by the owner/manager to identify anything you might not be aware of.

The best way to do this is to arrange a meeting where you can show them the completed financial statements and review the balances of each account, including the subsidiary ledger balances.

Throughout the review ask the question, “Do these balances seem reasonable?” At the end of the meeting ask, “Are there any other assets or liabilities that I haven’t included?” Occasionally, they might surprise you with an event that you didn’t have any knowledge of before, but that will affect your books.

In fact, often times the accountant will know more about the business finances than the owner. That’s why so many Universally trained accountants diversify into new businesses because they see opportunities going untapped.

Backup Year-End Data

Be sure to backup all current data before performing beginning your Year End financial reports. It’s also a good idea to print all financial reports prior to your Year End calculations. Once you complete Year End financial reports, backup that information as well. Label your files clearly to avoid confusion of the different files.

Universal Training Can Help with Year End and Other Accounting Functions

Universal’s Professional Bookkeeper Program can help you perform valuable accounting tasks for the small business. Whether you’re looking to improve your current accounting and bookkeeping business or whether you’re looking to start your own accounting firm, the PB Program is guaranteed to help! Don’t wait another day to advance your career. Visit Universal Accounting Center today!

Year-End Is Where the Fun Begins!

It’s That Time Again

It’s that time of year again when most businesses are closing their books. The business owners are either celebrating or licking their wounds. In any event, we as accountants usually have some clean-up and decision making to do.

January thru April is when we do our best work (and make the most money). We’re well fed from the holiday festivities, and anxious to tackle a new challenge.

Year-End Financial Statements

The year-end financial statements are the most important reports we issue. They will be used for tax preparation, future reference, and decision making more so than any other monthly reports we prepare.

For that reason we need to spend more time making sure we are correctly reflecting accurate information.

As a timely refresher we are providing a simple checklist of items that you should consider for each business you are working with when ensuring the accuracy of your year-end books:

Once you have completed this list, and before putting the books away for the year, make sure you run the financial statements by the owner/manager to identify anything you might not be aware of.

The best way to do this is to arrange a meeting where you can show them the completed financial statements and review the balances of each account, including the subsidiary ledger balances.

Throughout the review ask the question, “Do these balances seem reasonable?” At the end of the meeting ask, “Are there any other assets or liabilities that I haven’t included?” Occasionally, they might surprise you with an event that you didn’t have any knowledge of before, but that will effect your books.

Finally, the last step of the year-end process is to check your Sales, Cost, and Expense accounts. Compare them to prior years to see if any increase or decrease is reasonable. If you run across some significant changes, you may want to look at the general ledger for that account to ensure the entries are legitimate.

As you follow this year-end process you will be amazed at how much you learn. You’ll see trends and practices that will help you in consulting with the client and help him/her run their business more effectively.

In fact, often times the accountant will know more about the business finances than the owner. That’s why so many Universally trained accountants diversify into new businesses because they see opportunities going untapped.

So, this year, take the time and make the effort to be precise so that you can go into 2009 with reliable balances and peace of mind.

Year-End Accounting Checklist

• Does my general ledger bank balance reconcile to the bank statement?
• Are there any accounts receivables that are worthless and should be written off?
• Is my balance in Allowance for Bad Debts a reasonable estimate of potential writeoffs?
• Is the company’s inventory balance correctly stated?
• Are there inventory items that cost more than their worth and should be written down to their market value?
• Does the company still have all the fixed assets?
• Is my depreciation correctly recorded for those fixed assets still in the company’s possession?
• Did I amortize goodwill and franchise fees?
• Are there any prepaid items that need to be adjusted such as prepaid insurance?
• Have all assets been reviewed for accuracy?
• Have we recorded all of our payables?
• Do the payroll tax liabilities coincide with our quarterly reports?
• Do the balances in the notes payable accounts (loans) agree with what the banks say we owe?
• Are there other debts that have not been included on the books?
• Are there debts on the books that no longer exist because of forgiveness or oversight?

More Day-to-Day Accounting Tips

This Web site include many other Accounting and Bookkeeping tips to make servicing your clients less stressful and more profitable.

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8 Tips in Achieving Balance in Your Personal and Professional Life

Last week you took our quiz to determine whether or not you are a workaholic. If you’re reading this now we’re guessing that you realize that you are indeed overworking yourself and it is negatively impacting your personal life. If achieving a healthy balance between your work and personal lives is important then you’ll find the following 8 tips to be extremely helpful:

1. Join a recovery group
Whether you’re an extreme or budding workaholic you may find a recovery group to be helpful. Workaholics Anonymous has meetings around the globe and you might find local groups that can help you better balance your life. There you will find like-minded professionals who can provide you with practical tips and techniques in recovering from workaholism.

2. Determine your true priorities
Before you can balance your life you must first determine what your priorities are. Workaholics are generally value -driven individuals who have confused their priorities a bit, coming to view excessive work as a representation of a strong work ethic, the desire to provide for their families, and the will to be a successful and valued professional. You must reflect on what really matters to you and then list your priorities so you can begin scheduling for them. With workaholics, often what matters most gets the least amount of time and attention.

3. Schedule what you value
Now that you’ve determined what your true priorities are, you can schedule accordingly. If family is important to you then you must ensure that you can spend quality time with them. This will mean setting limits for yourself. At what time will you stop working and start concentrating on personal priorities? This may require an initial concerted effort, but after time you will come to appreciate this new-found balance.

4. Step away from your planner
Workaholics tend to overschedule their work week, planning for too many meetings and appointments than are reasonable. As a recovering workaholic you need to learn how to underschedule, giving yourself time between appointments to prepare, reflect and make necessary action items that will enable you to work more effectively.

5. Take your multitasking habits to task
If part of your workaholism includes an unhealthy amount of multitasking you need to practice moving from one task to the next without become distracted by other projects or tasks. This will require a fair amount of concentration and focus.

6. Schedule breaks
If you’re reading this, chances are you’re the type of professional who sees a gap in your schedule as the chance to get more done, to leap ahead, to log one more billable hour. But remember, if you don’t take a break now and then (at least 30 minutes total throughout the course of your workday) you’ll find yourself paying for it later, either in sick time or with feelings of burnout.

7. Safeguard your health
The healthier you are the more energy you’ll have to run your business. If you haven’t already, schedule in daily time for exercise and/or meditation. Also, ensure that you’re eating foods that will fuel your work activities, enabling your mind to be sharp and alert.

8. Substitute activities
Workaholics Anonymous recommends that you stop adding new activities to your schedule. Instead substitute, remembering that each new item you add to your schedule should replace one with equal time and energy requirements. This forces you to recognize that your time is a limited resource that should be measured accordingly.

Small business owners, more than most, are extremely susceptible to becoming workaholics as they strive to not only keep their businesses afloat, but see that they are profitable enough to sustain their families and often a support staff as well. While it may be difficult to take these steps to better balance your life, the rewards will be innumerable. And as you attend to your personal needs and better prioritize your time, you’ll find yourself rejuvenated and refreshed so you can tackle your business with a renewed sense of vigor and dedication.

Resource
Workaholics Anonymous