Accounting and Bookkeeping Articles

A 7-Question Quiz to Help Determine Business Readiness

Most contract accountants encounter a time at which they must decide whether or not they are ready and willing to grow their business by hiring a support staff. Some are satisfied with their current workload and income. Others realize that an influx of clients means more demands on their already limited time. These accountants realize that by hiring even one employee they may be able to increase their capacity and their bottom line. But how do you know if your business can sustain one or more employees? Here are 7 questions you can ask to determine if your business is ready for a support staff:

1. Can current cash flow sustain a new employee?
Are you making enough money to actually pay an additional employee? Obviously you’re hoping that with some help you could earn even more money. But if your current cash flow doesn’t provide that wiggle room necessary to add someone to your payroll, you may consider increasing your clientele before you increase your staff.

2. Is your business stable enough to assume the risk?
You must look at more than just cash flow to determine whether or not your business can sustain a new employee. Weigh current debts against your income in order to determine whether or not your business is stable enough to assume the risk a new employee would bring.

3. Does your current work load require additional help?
The last thing you want to do is hire someone who doesn’t have enough work to keep them busy. If you or your current staff is collectively managing a workload that could keep another person busy than you should consider hiring additional help. Also, if your personal life is suffering as a result of overtime, you should consider lightening your own load by hiring someone to share that burden. Otherwise we suggest waiting until your workload justifies the additional help.

4. Is your current need for help long-term or temporary?
As you question your current need for help you should remember that a full-time, long-term employee will still be on your payroll when your practice hits a yearly slump or encounters a lull in business. Is a temporary employee more practical? It’s easier to make a temporary employee permanent than it is to make a permanent employee temporary.

5. Are your competitors hiring?
If your competitors are growing their businesses by hiring support staff you may consider joining them, especially if you want to maintain a competitive edge. And depending on the type of talent they’re looking for, the sooner you place that want-ad, the better. If hiring, you want to ensure you have the prime pick of the talent pool.

6. Can you pin-point exactly what type of help you need?
Before you begin the hiring process you must first determine the type of help you’ll need. An administrative assistant will come easier than an entry-level accountant. Assess your needs to determine exactly what type of position you’ll be “opening.” Also, list the specific tasks you’ll expect them to perform; this will better enable you to define the position and what skills will be required.

7. Is there a sufficient talent pool from which to draw applicants?
Now that you know what type of applicant you’ll be looking for, do a little research to determine whether or not your area has a sufficient talent pool from which you could find a qualified employee. Waiting (even a number of months) to hire just the right person is better than rushing to hire the wrong one.

Growing your business by hiring a support staff takes time and considerable forethought in order to ensure you’re taking the necessary precautions as you move forward. If you’ve decided that you do indeed need to hire a support staff, come back next week when we will be discussing how to ensure you pick the right applicant.

7 Tips in Finding the Right Applicant(s) for Your Needs

Last week we gave you a quiz to help you determine whether or not now is a good time for you to hire an employee or add another one to your support staff. If you’re reading this article today, we’re guessing that you’ve decided that now is the time to expand your business by hiring help. Finding and hiring the right employee can be one of the most important decisions you make for your business. Unearthing the perfect applicant can improve the profitability of your business and make your professional life a lot easier. But how do you do that? Small business owners especially have little room for error when hiring individuals to work for them. Poor judgment can cost you money, and sometimes even a client or two. The following 7 tips can help you avoid pitfalls in finding just the right applicant for your needs:

1. Create a job description
Before you start looking for applicants you need to know the skill set you want to find. Write down all the tasks this employee will perform. Focus on the verbs. Do these skills require experience? If not, what characteristics would the employee need in order to acquire those skills? Be specific. The only way you will be able to hire the right person is if you know exactly what your business requires.

2. Get the word out
Inform professionals in your network about your opening; they may know of skilled individuals looking for a good position. Also consider job placement services, especially if you’re looking for applicants with a valuable skill set. The want ads and job boards are also a good way to publicize your opening.

3. Develop informative interview questions
Good interview questions will enable you to find the right person to fill your position. Consider questions that will help you learn of past performance, determine problem-solving ability, determine their work preferences and future career goals. All these things can inform your decision. And in order to fairly weigh one candidate against the next you must ask all applicants the same questions.

Note: Be careful! It is illegal to ask candidates anything discriminatory. Avoid all questions that address the following: race, color, gender, sexual preferences, religion, national origin, birthplace, age, disability, marital/family status.

4. Perform two interviews
Most employers perform two job interviews; the first enables them to filter all applicants who are ill-suited for their position. The second interview is designed to help them narrow their pool a bit so they can focus on the most important questions. For example, if costumer service is important to you, craft questions that will help you recognize whether or not candidates will work well with your clients. If punctuality and a good work ethic are important to you, again you must craft questions that help you see how your candidates measure up to these requirements. As long as you take the time to thoughtfully compose your interview questions and ask each candidate the same set, you’ll be sure to find the perfect fit for your position.

5. Check references and perform background checks
Why ask for references if you don’t check them? I’ve heard countless stories of references who shared crucial information about a candidate’s true nature in a job environment that either foiled his/her chances or sealed the deal. Either way references can provide you with more information on which to base your final decision. And background checks can also be informative, telling you which candidates may threaten the livelihood of your business.

6. Listen to your gut
Often a gut instinct will tell you which applicants are a good match and which would be bad for business. Don’t rule those feelings out, but consider them, as well as the applicants’ skills and experience as you make your final decision.

7. Extend the offer of employment or try again
Once you’ve determined who you will be hiring, extend the offer. Be sure you inform the other applicants that you will not be hiring them; good etiquette requires you do it by phone. It’s important, however, that you don’t rush to hire someone simply because you’re anxious about expanding your business. If you didn’t find the right person this round, you should consider waiting a month or two before trying again. You don’t want to be in need of an article on how to fire your employee later. When you choose employees wisely upfront you have a better chance of building a more dynamic and successful business later.

Come back next week when we discuss how to retain good employees.

A Thriving Accounting Practice Awaits You

A few days ago I was asked what I do and why I do it. This wasn’t a new question to me; over the years many of my friends and family have asked this same question. In short, the answer is I work for Universal Accounting Center. My job is to enroll students in the various independent study programs we offer in accounting and tax. Generally that is enough information to answer that question for people, but today I want to share with you the whole story.

More than a decade ago I was working as a headhunter placing individuals in mid to upper-level accounting positions. At times there were more positions than candidates and at other times the opposite was true. During a time in which I needed more qualified accounting candidates, I was introduced to Universal Accounting Center. It was here that I found candidates eager to apply their new-found skills and talents within the accounting profession, and more importantly they had a confidence which helped them in both temporary-hire and direct-hire opportunities.

As time past not only did I have a history of successful placements but also consulting projects with the school. It was through this period of time that I had the opportunity to come to UAC full-time. Personally I felt that this was a very big decision as I wanted my next employment opportunity to be a challenge. I was still young and felt that I had at least 1 or 2 more great rides ahead of me and wondered if this would be the one to help me excel in my career.

Universal Accounting Center’s Success

Ten years later I could not be happier. It has not been without trials, hard work and periods of high stress, but working with the great staff at Universal, under the direction of its president Allen Bostrom, we have experienced success. The ride is far from over as there is still so much to do, but for 4 years running we have been recognized as one of the fastest growing 100 businesses in the state of Utah, and in 2006 we were awarded the 313th fastest growing company in the US by Inc 500. These are not all of the awards and recognitions UAC has received, but they are by far are some of the more prestigious.

The Best Indicator for Success: The Success of Our Students

But the best indicator of our success is defined by our graduates. Over the years I have meet with various students who are excited, poised to enhance their accounting careers with possible promotions and pay increases dependant on their soon-to-acquire new skills; quickly these students hunker down for a few weeks of study and then realize their goals. There are others who feel that they are at rock bottom and running out of options. Perhaps this was a career shift or something that they had not done for years but, with apprehension, started their studies and in time found the skills and confidence necessary to move forward and find that perfect job.

Then there are those with ambitions of self employment. For however long, they have considered or desired the opportunity to break out on their own with a handful of clients. Perhaps they only needed a few to confirm that they could earn extra money. Then there are those who are a little bolder, with dreams of growing the largest practice in their area by offering premier accounting and bookkeeping services that they feel every businesses deserves.

The Will to Succeed

This is why I enjoy what I do. I work with a team of people that help individuals get paid what they are worth in their chosen profession of accounting, bookkeeping and tax. The thank-you letters or smiles of gratitude from students make it all worthwhile. I do what I do to read the success stories. Over the years I have met these individuals and watched them work hard to accomplish the things that they have.

Consider the following:

What the mind can conceive and believe it can achieve. - Napoleon Hill

Man is made or unmade by himself; � all that man achieves and all that he fails to achieve is the direct result of his own thoughts� A man’s weakness and strength, purity and impurity, are his own, and not another man’s; they are brought about by himself, and not by another; and they can only be altered by himself, never by another. His condition is also his own, and not another man’s. His suffering and his happiness are evolved from within. As he thinks, so he is; as he continues to so think, so he remains. - James Allen

I have seen this manifested in these students and it continues to amaze me. It is the process of human struggle to better one’s circumstance that I am proud to be apart of as I work to provide for my family, putting a roof over their heads, clothes on their backs and food in their bellies. My family’s well-being is accomplished through this position I have at Universal Accounting Center. It is my privilege to be a part of this company.

What Our Graduates Are Saying

We wouldn’t want you to go on just our word alone because that would be, well, foolish. Here are what some of our graduates are saying about our programs:

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.

The most comprehensive accounting training opportunity I have ever found. Well organized. The instructors were prepared and knowledgeable, as well as personable. The workshop was well worth my time and money. - Debbie D.

Being from Canada, I was skeptical whether your company was really going to be able to help my business grow. You and your team members were so hospitable to the group! We gained the knowledge on what it takes to build our business, along with being able to see the results of your hard work. When you talked about “MAP” I realized the importance of what I was missing-marketing/sales. The greatest asset I received from the UPB workshop. I need to believe in my own value, no one else will, even if I am gifted at what I do. If I cannot express the value of my services, I will not be prosperous. I am a Profit Expert. I definitely felt the UPB workshop was well worth my commitment of time and money. - Cheryl C.

The Point of Change

But how do these potential students reach a point where they decide now is the time and UAC is the way to move forward and accomplish their desires. I will not presume to suggest that it is the same for all of the students I have worked with, but there seems to be a common theme, one I can understand and appreciate.

For most people it boils down to two things: either they’re interested in taking advantage of an opportunity they the accounting profession or they are in the pit of despair and feel they have found a way out. The majority of those I have counseled are considering self-employment. They see UAC’s programs as a way to supplement their day job in an effort to improve their current situation. These individuals often ask themselves these questions:

Question #1
Is this achievable; is there a demand for the skills and expertise in the day-to-day application of accounting principles in business today?

For over a decade the demand for accountants and bookkeepers has been increasing. Brent Inman of PricewaterhouseCoopers said, “It’s clearly one of the hottest markets (for accountants) that I’ve seen.” Consider the accounting forecast recently released by the US Department of Labor. For years Universal Accounting Center (UAC) has proudly shared prior reports that by 2008 accounting jobs would increase by 20%. That great forecast has been extended to 2014! They predict “Employment of accountants and auditors is expected to grow faster than average for all occupations through the year 2014.”

So the answer to that question is yes; accounting services are in high demand.

If you have asked yourself this question, consider this, who will your potential clients be? The answer to this question can be found in yet another question: What percentage of businesses need to perform accounting and bookkeeping? You’re right: 100%. Why? For countless reasons. Accounting is done to determine budget, ROI, taxes, to get lines of credit, etc.

Of the 100% of businesses that need accounting services it is important to know which of them would be potential ideal clients. Out of those businesses, 92% have fewer than 20 employees. That includes the majority of opportunities in accounting. Those are the businesses you will want to target.

Question #2
Can I really make a good living offering accounting and bookkeeping services?

At a minimum an accounting and bookkeeping service should be charging $30 to $60 an hour for those services. And the national average for monthly bookkeeping services is $300 to $400 a month ($500 total if you include tax planning and preparation services).

So the formula is simple. Divide how much you want to earn, X, by $300 or $400, and you can determine how many clients you’ll need to meet your financial goals each month. Almost every time I do this exercise with someone, they have found that this is not only more easily achievable than they expected, but it is more profitable as well.

The “Life Time Value” of a client is also important to understand so we can appreciate the importance of retaining clients. There is no reason to get a client only to lose them later. According to a recent AICPA study, the average client lasts 7 years, so if we take the average income resulting from one client in one year($3,600 or $4,800 in annualized billings) and multiply that by 7 years, we have the LIFETIME VALUE of just one client ($25,200 or $33,600). Isn’t that amazing?

As for the time to service these clients, realize that it will take, on average, 8 hours a month to service each client. So when we you determine how many clients you need and multiply that number by 8 (since an average client takes between 6-8 hours a month to service), you can see how many hours you’ll have to work per month to service your clients’ needs.

After answering those two key questions individuals quickly realize that starting their own accounting and bookkeeping service is not only achievable, but profitable as well.

The Professional Bookkeeper Program and the Universal Practice Builder Program: Guaranteed to Help You Succeed

Universal Accounting Center is here to help you start/build your business TODAY. To do this we have a tried and proven program specifically designed to help you in three ways:

• 1st - Giving you the credentials and qualifications you will need to start/build your business.
• 2nd - Train you in successful marketing strategies that will help you get clients quickly
• 3rd - Inform you how to better service your clients in a very profitable way.

Nine of 10 businesses that you see everyday need your services and our program will help you find them and help you present your services to them so that they will understand how you can help them increase their bottom line.

With our proven system you can target those companies and meet your goals now, instead of putting them off! This is also very profitable. With our proven system you will make at least $30 - $60 per hour offering accounting and tax services.

Statistically speaking 74% of our graduates have their first client within 30 days. With our help, your business would achieve the income, flexibility, goals, and dreams that you desire, and you could have your first or next client in 30 to 60 days. Imagine, you could have those new clients pay for the training that will start your business.

The Free Support and Coaching is perhaps the most important benefit that comes with your enrollment as a student of UAC. This will enable you to be in business for yourself, but not by yourself. You have a team of professionals committed to guide you through the training process, as well as building your business. This team includes your academic advisor, a marketing coach, accountants, bookkeepers and CPAs, all available to consult with you on a case-by-case basis as you build your business!

• You will be assigned an accountant or CPA to help you with your clients with accounting/bookkeeping questions
• An accountant to help you with the accounting software questions that you may have as you service different clients (Peachtree, Great Plains, QuickBooks Pro, etc.)
• And a coach to start our proven marketing program.

Our goal with these programs is to help you provide the services that your clients need so that they can see you as their Profit and Growth Expert. With our help you will do more than offer your clients accounting and bookkeeping services. To be the premier accountant in your community you will also focus on reducing their taxes, improving their profits and putting more money in their bank.

On top of all of that our courses have a 100% money back guarantee. For the Professional Bookkeeper Program, it simply reads;

“If, after completing the course, you feel the course didn’t live up to your expectation, simply return the materials to Universal, for a 100% refund of any monies paid.” Now, that’s more than fair, isn’t it?

For the Universal Practice Builder Program it reads:

“If after following the steps of the Universal Practice Builder for 12 months, you do not have an increase of more than $30,000 in annualized billings, then simply return all materials given and we will refund all monies paid.”

Universal Accounting is committed to providing you with all of the tools you need to achieve the success that you desire; our courses provide you with the accounting knowledge, the extensive and practical hands-on experience, the certification, the step-by-step proven marketing model and the support necessary to help you become not just a full charge bookkeeper, but truly the profit and growth expert for your clients. You will have the knowledge and confidence to step into any small business situation, set up the chart of accounts, advise the business on how to get control of their cash flow, increase their profits and legally lower their tax burden. And remember, your first few clients will pay for the entire training. What are you waiting for? This is your chance to change your future.

Learn More about the Universal Practice Builder & Professional Bookkeeper Program

What is the “Best of the Best”? You might be surprised to learn that of all the possible business opportunities available today, a Bookkeeping and Accounting practice is considered by some to be one of the best. In fact, Paul and Sarah Edwards, authors of “The Best Home Businesses for the 21st Century,” rate a bookkeeping service as the “Best of the Best” home-based businesses. Below is a list of things that I think make an accounting and tax service such a great opportunity.

1. It’s Mandated By Government — Every business needs some form of bookkeeping — whether it’s a one-person operation or the business has thousands of employees.
2. A Great Income — A person can expect to earn more than $30 per hour — sometimes as high as $75 per hour. The average client billing will be $300 per month and require six to eight hours a month to complete.
3. Inexpensive to start— For less than $1,000 a person can purchase everything they will need to get the business underway. Those that already have a computer have the biggest part of the investment taken care of.
4. No Special Equipment Needed — Other than a computer, printer, inexpensive calculator, and fax machine, there’s no special equipment that’s necessary.
5. Work Anywhere — Using today’s technology you can have clients anywhere in the world.
6. It’s Easy — Accounting/Bookkeeping software has become easier to use. The most popular software on the market today is QuickBooks Pro (less than $250).
7. No Outside Office Required — You need only a small area of your home for your office. It can even be in the corner of a bedroom.
8. No Zoning Hassles — There’s no traffic in and out of your home, so zoning laws are never a consideration.
9. Keep Your Present Job — You can build a part-time business while working full-time at another job.
10. Work When You Want — You can perform the work during the day or night. It’s a great business to work around a busy schedule.
11. No Inventory — You don’t have to purchase or maintain inventory.

Maybe you feel like you’ve gone as far as you can go in your current career. Perhaps you’re a homemaker who wants to build a business out of her home. For thousands, an Accounting and Tax service could be the perfect business for you. How can I say this? There are thousands of people just like you who have found personal and professional satisfaction by owning a bookkeeping and accounting practice.

You don’t even have to take my word for it. Click on the link below and hear about this wonderful opportunity. Victoria Richardson, Scott Ivins and Rebecca will tell you how it’s changed their lives.

Click Here to Listen to Victoria, Scott and Rebecca

It’s Your Turn

You don’t need a college education to start your successful business and get paid what your worth. Of course, you will need some specialized small business accounting and tax training. Most colleges don’t teach what you’ll need to know to be the most successful at this business. You need to understand the accounting needs of small businesses. Most college programs focus on large corporate accounting and tax, which is very different from the world of small business.

At Universal Accounting, we’ve been teaching small business accounting since 1979. We know small business accounting inside-and-out. There’s not another accounting program out there with as much experience with small business as we have. What you learn with Universal will be real-world tested and real-world successful small business accounting.

You’ll want to know how to set up your practice without spending more than you have to. To turn knowledge into income, you’ll need to find clients. With hands-on skills that will save your clients money each and every month, you’ll learn how to keep clients and make your business profitable. Here at Universal, we’re with you all the way. From a personal coach to answer all your questions to the finest distance learning program that can be found anywhere.

When Was the Last Time Your Professor Let You Rewind the Lecture?

Most accounting and tax training programs provide you with a text book and that’s about it. A text book just can’t provide a complete and hands-on learning experience that will give you the confidence you’ll need in the real world.

At Universal, we’re not just talking about text books. We’re talking about the finest DVD instruction anywhere and easy to understand written materials. Worksheets and evaluations to make sure you understand the concepts presented. Most schools out there only offer written materials and aren’t as complete as what Universal Accounting offers.

Written textbooks with DVD video instruction that can be viewed either on your computer (if you have a DVD drive), or on your television DVD player, offer the ability to rewind and review concepts that you don’t understand the first time through.

Six Full Months of Telephone Support

The first year of your Bookkeeping and Accounting business I’m sure you’ll have questions. Don’t worry. As a graduate of Universal Accounting Centers Professional Bookkeepers Program, you’ll have access to a live voice on the other end of the phone to help you with any of your bookkeeping or marketing questions.

In fact, we look forward to the opportunity to help you succeed. We believe that your success is our success and we are committed to doing everything we can to help you create the lifestyle that you and your family deserve. Believe it or not, if you complete the course and aren’t convinced that we’ve given you everything you’ll need to be a success . . . we’ll refund your money.

Universal Accounting’s Ironclad 100% Money Back Guarantee

Purchase and complete the course, and if you don’t feel that you’ve received your money’s worth, you can return the materials and get a complete refund. All of us here at Universal Accounting are so confident that you will find this training to be of value that we all stand behind it, 100%.

I’ve never taken a university or college course that offered that type of guarantee. I’m unaware of any other program like this one that provides that same level of risk-reversal for you, our students

What Does a an Accounting and Tax Business Do For Me?

Where do we start? There are many advantages to owning your own business, but there are even more to owning a Bookkeeping and Accounting Business.

• The ability to earn a great income ($30 to $60 per hour or even more)
• You can work from home
• You will have more time with your family
• You can provide a needed and valuable service to your clients
• You will earn the same respect that other professionals enjoy, without a college degree
• You will be able to retire early
• You’ll have a business that can be passed on to heirs
• Your family can work in the business with you
• You can choose the hours you work and the hours you don’t

I think this sounds like a worthwhile opportunity. If you agree with me, you’re not alone. Thousands of people have told us that a an Accounting and Tax business has been the perfect way to balance work and family and still provide a wonderful living for their family. It’s hard to argue with that kind of success.

The more I think about it, the more I have to agree with Paul and Sarah Edwards, this really is the “Best of the Best”.

How about a power breakfast? I’m not talking about those dry-crunchy-barley breakfasts either. I’m talking about eggs, bacon, and accounting leads from your own sales team. And the best part is your sales staff is working for FREE!

Sound good? Well here’s how it’s done.

Many professions such as accounting, rely on word-of-mouth advertising for leads. These professions recognize that developing a network among other professionals can and will result in expanding their customer base.

To meet this need, networking groups are developed every day, throughout the United States. The purpose of these groups is to create a forum where professionals like ourselves can share leads with one another. Often times, these groups are organized under the Chamber of Commerce, or under the direction of a national organization such as Business Network International.

Within a city there may be dozens of groups (sometimes called chapters) containing 10 to 35 professionals. The best of these groups permit only one person from each profession to become a member of that particular group, thus the need for multiple groups. In other words, as a member of that chapter you would be the only accountant or bookkeeper.

Typically each group will hold meetings once per week (usually in the morning) at a restaurant. In that meeting each member has an opportunity to introduce him or herself and remind the other members what services he or she provides. Usually time is provided wherein each person stands and shares a referral lead with the others attending the meeting. That’s called payday.

Think of it. You’ll have a corps of professionals telling their clients, friends, neighbors, and relatives about you and your services.

Of course, to make it fair you will want to share their names with others, but that’s another great advantage of membership in these groups. You will develop associations with a host of professionals including attorneys, real estate agents, tax preparers, insurance agents, and on and on. Your relationship with these professions will enhance your ability to service the needs of your clients.

There is typically an annual cost, but it is usually less than one month’s billing for an average client so it can be quite affordable.

If you are interested, first contact your local Chamber of Commerce to see if they have organized groups for you to join. If not, ask them if they know of any groups or chapters in your city. If they can’t help you, contact Business Network International, a national organization that has chapters all over the nation. They will provide you with a list of chapters near you. Their toll-free number is (800)825-8286.

This terrific technique is one of many ways that can generate many new clients. I’ve saved some of my best “dynamite” ideas, however, for my course, Start Your Own Successful Bookkeeping and Accounting Service. If you’re not familiar with it, I suggest you look into it. Just go to Getting Started

No small business owner wants to declare bankruptcy. In fact, for most small businesses bankruptcy equates to business failure, and no one goes into business looking to fail. Sometimes it helps to know the causes of failure in order to avoid it. Here are the common causes of bankruptcy.

External Factors

Rise in competition. Sometimes a dramatic increase in competition can lead to bankruptcy. Be on the lookout for this problem and take action to mitigate it as quickly as possible. Do you need to change your fees? Would adding new services make you more competitive? Should you change your marketing approach? Once you pinpoint the specific problem, you can devise a solution.

Rise in business costs. Inflation, rent increases, and a general rise in business costs can put some business owners in a bind. Once you recognize this problem you make changes in the way you manage your money in order to mitigate this problem.

Internal Factors

Poor management. Sometimes poor management choices can drive a business to bankruptcy. You need to take an objective look at your own management style in order to determine whether or not this problem is dooming your business. Sometimes talking with a business consultant will help you get that unbiased perspective you need. In order to fix this problem you must be willing to take constructive criticism to heart and make changes that may be uncomfortable for you at first.

Financial Problems. You are probably aware of this problem more than most, because accountants and bookkeepers know that poor financial management is one of the greatest causes of business failure. Hopefully this isn’t a problem you’ll ever encounter, but if it is we hope you catch it early and resolve it early.

Personal Struggles. Divorce and death are difficult personal struggles that can interfere with business management. There’s really no set solution to managing such difficult personal issues and your business simultaneously except to decide you want to save your business amidst the struggles and devote the time necessary to see it succeed. And be sure you also take time for yourself in order to process the difficulties in a healthy manner.

Conflicts with Other Entities

Dispute with creditors. When you accumulate excessive debt, you’re in danger of having creditors take legal action that could put your business in jeopardy. The best time to resolve this problem is before your claim goes to collections. In reality, this was an internal problem that was mismanaged; it should have been resolved before it became a dispute. Take immediate action to resolve this problem before it gains too much momentum.

Unresolved tax issues. Filing taxes for a small business is much more complicated than an individual return. If you’re not confident that you can file an error-free return then have a respected professional tax preparer file for you. And if you owe taxes or have penalties that need to be paid, either pay them in full or apply for a payment plan with the IRS. Ignoring unresolved tax issues will only cause more trouble in the end.

Better Manage Your Clients’ and Your Own Finances with QuickBooks

Many of the problems leading to bankruptcy have to do with poor financial management. There are many ways you can improve your own method for managing finances along with that of your clients. QuickBooks is the accounting software used by the majority of small business owners. Mastering QuickBooks can help you better track your own finances and become a key consultant with many of the small business owners for which you work. This will enable you to expand your services and get an edge on the competition. Don’t wait to secure your business standing. Order the Professional Bookkeeper’s Guide to QuickBooks today!

A Low Percentage of Tax Returns Are Audited

Only about 1.6% of all tax returns get audited, and many of these are what are known as “correspondence audits”. Correspondence audits are those audits handled by mail. Most often in a correspondence audit, the IRS is simply asking you to send them a receipt or other proof for an item that you entered in your tax form.

ALL Tax Returns Are Checked (not necessarily Audited)

This low percentage of audits performed should certainly not lull you into a sense of security. While a correspondence audit or “office audit” (audits that typically take place in an IRS office) are somewhat uncommon, know that ALL tax returns are checked by computer for math errors. It also knows exactly how much income that employers or those that you contracted with have reported as payment to you. Since this is one of the few facts that they absolutely can check, make sure that you are completely accurate and complete in reporting these figures.

In An Audit, Only Disclose What You Must

While you want to be completely honest if you ever are called into a tax audit, know that volunteering information that auditors do not ask for may complicate and lengthen the audit process. Even if you have nothing to hide, you may have overlooked something and the chances are good that the auditor may not catch it if you don’t call attention to it. Do not be evasive, as this will be a clue to the auditor that you are trying to hide something, and they are more likely to pursue the issue. IRS agents are trained to pause in conversation on purpose. Those that are nervous or trying to hide things will often disclose clues that they did not intend to to fill an uncomfortable silence. As long as you have been honest and competent in reporting your taxes, try not to be nervous. Just don’t fall into the trap of thinking that only the guilty have something to fear and that you can talk openly and freely without possible recourse. If what you say casts doubt in the auditor’s mind, you will make the audit last longer and delve deeper, an unpleasantry even if you are in the right.

To protect your rights and interest, you may want to have a tax attorney present or at least consult one. They will know what things to avoid discussing that might create doubt in the mind of the auditor. In fact, in many cases, if you hire a tax professional or attorney, you likely will not have to appear in person for the audit. Because tax professionals know the tricks and traps that the IRS might use, this could definitely be to your advantage. The tax auditor may very well have extensive training in tax and accounting, so you want that kind of professional training on your side as well. Getting help from a tax professional or attorney will help to level the playing field, putting you on a little more equal footing with the auditor.

Click here to access our complete list of free tax articles.

Being Ready For The Business When It Starts To Flow In

For most who are running a business for the first time, you have those moments of clarity that you know if you were to do certain tasks, or underatke certain strategies you would be able to take your accounting business to the next level. But it seems, for the most part, that its all you can do just to handle and keep afloat what you now have going. Each day that comes along that you have your welcome mat out, it seems like there is a new set of challenges and hurdles.

There are definitely things you can do to prevent you from getting in that rut. An ounce of prevention is most assuredly worth a world of cure and when you are able to plan, even in the smallest way possible you will be able to curb that feeling and be able to experience the success, and the feeling of success that is within your reach. Here are a few things you can do as a business owner to get that “loving” feeling.

1.  Plan Out The Next Day.
This may seem so simple, but it is fundamental to keeping on track and in sync with that “successful” feeling. Each day you will be able to check out the progress (or non-progress) of your accomplishments for the day. This organizational exercise will get your brain flowing to the things that need to be done that next day, and over the evening will keep your subconscience working on the next tasks on your list.

It also helps, for those who aren’t the morning birds as others are, to give you something to concentrate on and be directed to do in those beginning hours of the day when you are still trying to knock the sleep out of your eyes. Regardless if your a morning person or not, by detailing out what you need to do each day will give you a great way for measuring how effective you are and what improvements you need to make to the way you do business behind your desk.

2.  Set Weekly Goals.
Especially when you are jump-starting your business from scratch you need to be doing a certain number of things at certain points during the week. As stated in, “In The Black” there are three things business owners need to concetrate on for success in business. Production, Marketing and Accounting. For you who have the Accounting business, Your production is the actual work of accounting you are doing for businesses. These are the hours you spend tracking, calculating, and planning with your clientele how to get or keep their business financially healthy.

Marketing, telling others what you do best is vital for the growth and sustainability of a business. Yours is no different! You need to be able to ample time to accomplish the marketing you must have for your business to thrive. Who of us have that one great client that is getting us the bulk of what we live on each month? How would it be if all of a sudden they were gone, or no longer doing business with you? Just imagine how the heart palpitations would settle down if you had two or three more just like them on the line, or growing with the billable hours that one had given you?

Marketing is essential, whether if it’s putting shoe leather to the pavement and knocking doors, or attending chambers of commerce meetings, it is something you need to do faithfully on a weekly basis.

Your own accounting of your business, measurements and metrics of the health of your own business is as needed as it is with your clients. Without setting and working towards weekly goals what would you have to measure? As with everything it is keeping that balance of business, that will gain for you the profits you seek. Setting weekly goals is excellent to being able to gauge how healthy the business was that week.

3.  Be At-The-Ready.
As a small business owner you always need to be on the look out for business potential and for those things that if undertaken would do your business harm. Being always at-the-ready doesn’t mean that you are coiled like a mountain lion ready to pounce on the next available “prey”, rather it means that you are, for whatever comes into your circle of influence that you are ready to handle it which ever way it may go for you and your business.

Clients’ business failures, account acquisitions, services additions, time constraints, adding employees, new office space, etc are all things that happen to all of us and how we are prepared to handle them is how well we navigate through what’s happening. One of the ways to be prepared is in the training you have to put into place for those you are servicing. If you haven’t taken the chance to familiarize yourself with Universal’s Professional Bookkeeper’s Program please do so by clicking here.

When you take the steps that are needed to be prepared for the business that will come in the doors, when you start applying the training you receive the customers will come. It is up to you to be there to meet their small business accounting needs… or not.

As someone who cares about the quality of the work you do, you want to be able to meet those needs head on, with confidence and with authority as a Profit Expert would have. The question that remains, “are you at-the-ready?” Click here to find out more about the Professional Bookkeeper’s Program.

Meet President and CEO, Allen Bostrom

Last summer, Universal Accounting Center updated their website and added a video tour to better introduce visitors to the UAC mission and to key Universal players. At the beginning of the video you’ll find Allen Bostrom, President and CEO of Universal Accounting Center.

Allen, Son of UAC Founder, Alf Bostrom

Allen is the son of Alf Bostrom, founder of UAC. In the 1960’s, Alf decided to venture into business for himself, and he started a management company. For a percentage of potential future profits, he managed failing businesses, many on the brink of bankruptcy, and promised to turn them around using his own capital and lines of credit. Alf managed 22 businesses in the course of his career, 8 together at one time. He became known as “The Turn-around King” and learned a thing or two about why small businesses fail and what they can do to succeed.

Alf learned how to make any business successful by adhering to basic principles in production, marketing, and accounting. He also learned that most individuals with accounting degrees lacked the proper training to do the accounting for the small business. Accounting professionals also didn’t seem to know how to market themselves. So to fill the gap, Alf created and wrote a small business accounting program. He opened his doors in 1979. UAC was formed to teach CPA’s, accountants, and business owners the proper method of small business accounting.

In 1992, Allen (a practicing CPA) and his brother Ken, joined the company and helped UAC to become an international institution with campuses located across the nation and a large online presence with multiple websites.

Allen, President and CEO of Universal Accounting Center

Allen is the first to tell you that he owes much of his business sense to his father, Alf. As a young man, Allen often accompanied his father to work where he observed powerful management principles in play. “These principles are even more important today than they were thirty-five years ago due to increased competitive pressures,” says Allen.

Allen himself has over 30 years experience working with businesses of all sizes and has taught over 25,000 people different aspects of accounting and business management. He has authored countless business management articles for publication and distribution. His weekly e-zine boasts a circulation of nearly 15,000 readers. And his blog offers his personal insight on accounting and other business issues. Additionally, he has developed coursework that is used in Universal campuses across the country.

He has refined and added to his early training that is contained in his latest release, In the Black: Nine Principles to Make Your Business More Profitable. It’s a quick read that can dramatically change the way a business owner looks at his or her business.

Allen is a much sought-after speaker and presenter promoting the importance of using accounting information in business decision-making. He has taught and practiced the Nine Principles in many industries, in all economic conditions.

Allen lives in Sandy, Utah, with his wife Sheri and their four children.

Allen’s Introduction to the UAC Video Tour

Allen himself introduces the video tour, explaining what Universal has to offer accountants, tax preparers, and small business owners.

Welcome to Universal [audio script]

Hi. My name is Allen Bostrom, CPA and President of Universal Accounting Center.

Welcome to the Universal tour. Since 1979 we have focused on the practical day-to-day application of the accounting process within small business.

We recognize that in the business world profit margins are too tight to let the bookkeeping, accounting and tax be ignored. In the next few minutes you’ll learn about the performance tools and curriculum Universal created to help businesses reduce taxes, increase profits, and put more money in the bank.

During this presentation you will be invited to access additional information about the great opportunities Universal offers. Below you will see different icons that will be mentioned during the tour; if there are any you would like to learn more about, click on them at any time.

Each of the icons below will transfer you to a new page providing more information on the corresponding topic. If you wish to return to the tour, just exit that screen and you’ll be brought right back to where you left off.

Now, to learn more about Universal, click Continue.

Everyone’s doing it! Mergers, product development, and additional services are the “name of the game” in virtually every industry. Why? Because that’s where we find the greater profits. Services like the following are excellent companions to a traditional bookkeeping service and can be terrific money makers.

There are two reasons why you should offer more than the traditional bookkeeping service:

1. More services mean more revenues. Any fees you earn on additional services to existing customers/clients comes to you virtually free. You’ve already earned the money that you have spent finding the client. Any additional services are gravy.
2. The one-stop-shop concept applies here. Why do people hire a general contractor to build a home, rather than deal with the subcontractors themselves? First, they don’t know how, and secondly, it’s a hassle. The same principle exists with their financial concerns. They don’t know what needs to be done, plus they appreciate it when someone who does can remove the bother.

Traditional bookkeeping is the core to financial services. Certainly, you will offer to provide those services yourself. However, you can provide these other services, or you can sub-contract them out to others. In other words, you do not have to be an expert in everything. And, even though you contract these out does not mean they’re not profitable to you since MOST PROFESSIONALS WILL PAY YOU A FINDER’S FEE OR COMMISSION on the service.

For instance, say that a business owner approaches you and asks for your accounting help for his business. Then he asks, “Do you do taxes?” If you haven�t prepared taxes in the past, you may be inclined to say, “No, I don’t.” Wrong! Instead, simply say, “I have an associate that is an expert at tax preparation. I’ll take care of it. No problem.”

I’m sure you would admit that the latter response sounds much better, and will provide better results than your first thought. Then, all you need to do is contact your associate.

Consider the services above, then determine which ones you can and want to do. Find associates that are interested in doing the others.

Most of these services can be performed by people you already know. For instance, you probably know a tax preparer, a payroll accountant, a notary public, and a typist. I’m sure they would love additional business. By the way, if you don’t know somebody in these areas, you can find them listed in the yellow pages.

They will gladly share their fees with you.

When you contact them, explain your purpose in calling, and ask them if they are looking for more business.  If so, do they offer a discount, or “finder’s fee”, for referrals. If their answer is “no”, you probably want to look elsewhere. Not because of greed, but it is usually an indication that they are not experienced, sophisticated or networked enough to be an asset to you.

For the more pricey services like income tax preparation, or loan applications you should expect between 15% to 30% of their anticipated revenue to come back to you. For less expensive services, such as notary public, getting a finder’s fee is unusual and not enough to worry about anyway.

Your associates are a marketing tool!

In addition to the finder’s fee, there is another great advantage about having associates — the client resource. Each of these professionals is a potential resource for referrals for your business. You should fully expect to find business from each of them. I have gone as far as changing associates simply because one is better at referring potential clients to me than another.

Tax preparers are an excellent source of new business. Most tax preparers don’t know a debit from a credit; and they don’t need to. Their job is to transfer information to the right forms, and calculate the taxes. They can do this very successfully with a set of financial statements prepared by an accountant. Without the financial statements, they are often like a fish out of water in an area they know little about.

Tax preparers, as much as anyone, understand the value of well-prepared information they can use to complete the taxes. They will gladly refer business to you, if they feel comfortable you�ll refer business back to them.

With a little ‘know-how’, you can provide all of these services yourself.

You can offer everyone of these additional services, yourself.  Although they may require a little training, none require a special license - not even incorporating a business.

Let’s consider loan applications, for instance. After you’ve completed a couple, you can normally prepare a loan application in eight to ten hours and charge $700 (which is about one-third of what a CPA firm would charge). Many of the forms are simply ‘fill-in-the-blank’ once you’ve created them the first time.

Here’s just a quick glance at what you would include in an average application:

At first gaze, these might appear a bit intimidating. But like most things, after you’ve done a couple, they’re a piece of cake. Like I mentioned above, most are simply changing the information to fit the new business.

One student of mine was making $7,000 each month just doing loan applications part-time! Once she learned how it was done, she completed the forms for her husband’s jewelry business, and was successful in getting the loan for him. Then a neighbor approached her asking for help, so she did the same for her neighbor.

That’s when it clicked. She put an ad in the newspaper: “If you are having trouble getting a loan, call me 555-5555.” THE PHONE BEGAN RINGING WITH 12 TO 14 NEW PROSPECTS EACH DAY. She narrowed it to the best ten each month, and charged an average of $700 each. The last time we heard from her, her husband had sold the jewelry store, and began helping her in the business.

I’m not suggesting you do loan applications exclusively like she did. There’s more money to be made providing accounting and bookkeeping services. I’m simply suggesting it can be another source of income.

If you’re not familiar with the loan application forms listed above, there’s a terrific book called, “Financing A Small Business,” that leads you step-by-step through the loan application process. You’ll learn how to market your service, work with clients, and calculate the fee for this part of your business. It even has the forms with blanks to fill in, so that you can get all the information at the first interview with the client. The system is so simple that anyone can do it. I don’t know of any book that’s better, or more complete, for small business loan applications than this one. The cost is only $69 and you may order it over the phone by dialing (800)343-4827.

By the way, for information on how you can get this book for FREE, see “Accounting Made Easy.”