Who makes the Tough Money Decisions ?

The people, who make decisions in accounting, make it based on three categories. First, people who manage a business, second, the external people of a business who have a direct financial interest to a business, and third the people and organizations that have an indirect effect on a business. This applies to non profit organizations as well. Management refers to the group of people who are in charge for operating a business and for measuring up to the profitability and liquidity goals. If a business is extremely large, then the management will most often require more than one person, and the people are hired to perform their job. Managers need to answer important questions such as what was the company’s net income, and if they have a substantial rate of return. Does the company have enough assets, and which products bring in the most money? When making a decision, managers usually follow a systematic approach. Even though larger businesses require a more concrete analysis, they follow a similar pattern to small businesses.



Financing a business: Financing for a company is critical, because they need that money to continue their operations. Here is a nice website to find out more information about financing a business. http://www.sba.gov/financing/
Investing in a business: Companies invest in their current assets so that it will make money for them in the future.
Producing goods or services: Operations and production management is responsible for developing and producing goods and services that the company can sell.
Marketing: Learning marketing and advertising skills so that they can distribute goods and services more efficiently.
Managing workers: Human resource management requires the hiring of qualified employees, and also paying them.
Providing information: The information management retrieves data about the company such as how much they made in the last month, and organize the information in a way so that it can be used. It also releases information to managers, and to important people outside the business.

Another group of individuals that needs knowledge in accounting is those you have a direct interest in the business, go figure. They use the information to analyze how a business is performing. Most businesses generally publish their financial report which shows how well they meet their profitability and liquidity goals. These statements display how well a company did in the past and probably most important, how well they will do in the future. However, many people outside the business also study the financial reports. They are the investors and the creditors. The investors are the individuals that invest in a business and will keep a part of the ownership. They are concerned with their past success and failures, and also will like to know the potential earnings. A concrete analysis of the financial statement will help prospective investors base their decisions. Once they finish investing they must continue to study a business financial statement. Next, the creditors are the companies that lease money to businesses for short or long term needs. Creditors are the people that deliver money or provide services for companies in advanced before getting paid. Their main concern is whether a business will have the money to repay the money with interest in an approximate time. Some of the things they study before they make their decisions are a company’s liquidity, cash flow, and profitability. Some examples of creditors are banks, mortgage companies, and insurance companies. Over the years the shift of people who used accounting information has varied drastically.

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• How to track business expenses during Start-Up phase
• 6 Steps to a Successful Small Business
• 8 Steps to setup a Business Paypal Account
• How Come That Idiot’s Rich and I’m Not?
• Keep Business and Personal Finances Separate

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Starting a Business: Top 10 Do's and Don'ts

TOP TEN DO'S

1. Live frugally and begin saving up money for operating your business.
2. Learn your business by working for someone else in the same business first.
3. Consider the benefits of starting a moonlight business.
4. Consider the advantages of operating a family business.
5. Objectively measure your skills and training against potential competition.
6. Consider subcontracting to low cost suppliers if you're manufacturing a product.
7. Test market your product or service before starting or expanding.
8. Make "for" and "against" list describing the business you are in or considering.
9. Talk to lots of people for advice.
10. Make a comparative analysis of all opportunities you are considering.

TOP TEN DON'TS

1. Quit your job before you have completed start-up plans.
2. Consider operating a business in a field you do not enjoy.
3. Risk all the family assets. Limit your liabilities to a predetermined amount.
4. Compete with your employer in a moonlight business.
5. Be in a hurry to select a business. There is no penalty for missed opportunities.
6. Select a business that is too high a risk or hurdle. Go for the 2-foot hurdle.
7. Operate a business in which you must have the lowest price to succeed.
8. Neglect to learn the negative aspects of an intended business.
9. Permit entrepreneurial self-confidence to outweigh careful diligence.
10. Allow the promise of a conceptual high reward deter reality testing first.

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• Bank of America Coupon codes


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5 Steps to Organize your Work Day Efficiently

It’s 10:38am and you are on a roll. You are so deeply involved in your work, that you barely notice the world around you. You are in the zone. You just need to verify the date on that invoice…but where is that invoice? It was right there a second ago. Nothing throws off your concentration faster that disorganization. You may have to spend the next 10 minutes looking through drawers, the piles on your desk and maybe even the recycling bin to see if it accidentally ended up there.


Are you one of those people who say they have their ‘own’ filing system? This usually is just a cover for ‘I basically know what each of these various piles are here for and can probably tell you what’s in some of them.’ There is no telling how much time can be lost in a day due to disorganization. Imagine if every time you needed something, it was right where it was supposed to be. What a time saver that would be! If you are trying to find a way to avoid losing precious minutes out of your day trying to find that file, email, invoice or pen, the following tips may be valuable to you.

1. File everyday
Don’t let papers build up on your desk. Piles of paper sitting on your desk not only hamper your efficiency, they create stress as well. Imagine sitting down to work with nothing but your current project on your desk. Now imagine it (if it doesn’t already resemble this) with piles of work everywhere. You can feel the stress those piles create. Set aside 15 minutes each day to create files, label them clearly and set up a filing system or just keep them in alphabetical order. This will be a great time saver the next time that you are looking for that invoice. The 15 minutes a day you put into this will be regained and then some in the time that you don’t have to spend searching for things.

2. Organize your computer files
Just as you set up a filing system for your papers, you need to arrange a filing system on your computer. Not being able to find a document on your computer is every bit as frustrating as losing one on paper. But this is very easily avoided, since every time you save a document on your computer, you are asked where you would like to save it. If you have just been randomly saving your work wherever your computer prompts you to, it’s time to clean up. Create folders for larger topics and subfolders within each topic. For example, if you work with contracts, have one folder called ‘contracts’, and within this folder have a subfolder where you keep your contract templates called ‘templates’ and other subfolders for each of your clients where you can store copies of the contracts you have with each customer. You should also regularly organize your desktop in order to avoid sitting and staring at it unproductively for long periods. You need to eliminate the clutter on your desktop by erasing any shortcuts for programs that you don’t use often. This will enable you to quickly access your frequently used programs.

3. Make to-do lists
Do you ever feel so overwhelmed with work that you don’t even know where to begin? Making a to-do list at the start of each work day is such a simple step, but will help enormously to keep you on track. You will avoid starting one task only to realize that you have something more important that needs to be done first. I personally have found to-do lists to be the most effective time saver and I am constantly amazed at how doing such a small thing as creating a list makes me a great deal more efficient.

4. Be neat
It’s incredibly simple and amazingly effective at saving you time. Put things back in their place when you are finished with them. There is nothing more irritating than having to stop working in order to find your pen. If you don’t have them already, find some organizational objects for your desk such as, a cup for your pens, a box for your paperclips and an in-box for your newest tasks. Keep the supplies you use frequently such as staples, staplers, highlighters and hanging file folder tabs in one easily accessible place.

5. Keep a calendar
With all of the responsibilities you have in a day, you can’t possibly expect to remember everything. A calendar will keep you on track and help you to avoid missing important meetings, appointments and even family events. If you use Microsoft Outlook, and have your computer on throughout the day, use its calendar or you can find many free calendar programs online. Just do a Google search for ‘free online calendars’. If you don’t work at your computer all day, consider buying an agenda to keep you on track, or a handheld such as a Palm Pilot or Pocket PC, or check if your cell phone has a calendar you can use.

Organization is the key to efficiency. Using these few simple steps will help your work day run considerably smoother. Taking the time to get organized is just the first step. Maintaining organization is the solution for helping you to remain effective in your work. Take charge of your time by following these tips, it will cost you little time, but will ultimately save you considerable hours.

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How to track business expenses during Start-Up phase

Small businesses in the start up phase have a lot of important decisions to make as they develop their business plans and concentrate on the initial steps that will put their business on track, building from the ground up. One of the most important aspects of the start up phase is putting together a sound financial plan to incorporate the start up costs that will continue to be relevant not only during the startup phase but also will grow with the company down the line.

Entrepreneurs often use their own start up capital to get their business ideas off the ground. Essentially, it is important to differentiate business expenses from personal expenses to maximize accounting efforts and to easily track the cost of business start up. Employing a company credit card, designed for small businesses, is an easy way to tally all business expenses in one location. For a young business, accurate accounting will be vital to establishing a solid foundation. Knowing what your expenses are will aid you in creating a sound financial plan and will carry over into the future.



Credit card statements make it easy to divide individual expenses into categories, such as office supplies, business licenses, marketing, and travel expenses. Reviewing credit card statements monthly should be a priority and at the same time, you can use a highlighter to categorize your expenses. This is especially important for sole proprietors, whose every expense needs to be calculated for tax purposes. The last thing a business entrepreneur wants to do at the end of the year is chase miscellaneous receipts and expenses in preparation for filing taxes.

Credit card statements can also be stored for future reference when coordinating each new phase of the company’s growth. With the progression of today’s credit card program, there are various credit cards offering benefits specifically to assist small businesses and entrepreneurs by offering discounts on office related supplies or cash back incentives for all credit card purchases. For any new business, savings of any kind are important, especially for business owners that are self-financing. It is important for business owners to take the time and research the credit cards which offer incentive programs very carefully and not just jump on board with each and every credit card offering a credit limit. Look for the rewards cards that are most relevant and most effective for your business needs. For example, if your business requires frequent travel to meet clients or perspective customers, look for cards offering airline miles or travel discounts. There are plenty of programs that offer different rewards variables to choose from but it is also important you read the fine print and consider the monthly payment responsibilities. Start up can be a precarious time for a business and there may not always be work in the pipeline.

While the start up phase of a new business venture can be an extremely exciting time, it is also incredibly confusing and fast-paced. Financial decisions should be well thought out and a company credit card should not be taken lightly. Doing the research and always practicing good financial habits will help ensure that the financial foundation of your company will start strong and continue to stay strong as growth occurs.

******

Tisha Kulak is a writer for Creditorweb.com, where she writes about business credit cards and responsible credit card use.

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6 Steps to a Successful Small Business

A few days ago, I finally followed through on what I have been meaning to do for a very long time....form an LLC to expand my business of websites/blogs. I have called it ATA Consulting LLC. The reason I have given this name is because 'Consulting' is a very broad category and thats why I'm not limited to just websites and blogs.

Below is a 6 step process to building a successful business.

1. Start Smart
2. Plan Ahead
3. Set up Systems
4. Seek out Sales
5. Aim for Growth
6. Leverage Opportunities



1. Start Smart.
Identify a niche. Don't compete to be the lowest cost provider. Look for what makes your product or service unique and adds a special value for the client and charge for that value. Every business has many facets. Start with what you know and like; start a business that has meaning to you. Keep in mind that we don't know what the future holds, many of the jobs and businesses of tomorrow don't exist today. You can create your own success.

Now is the time to dream. To start smart, you should like the idea of the business. The way to earn a good income and build wealth is by serving clients well, making their life better in some way-it's more than filling a need in the marketplace. To succeed you want to test the idea to make sure your potential clients like the idea too. Test your ideas.

2. Plan Ahead.
People often ask me why bother with a business plan? Look at the lottery as an example. You may get lucky and get the winning ticket, but the odds are against you when you rely on random chance. I'm a risk taker...but not that much, minimize the risk of going into business and maximize your potential for success. Take the time to write a plan of how you get from point A to point B. A plan gives you a clear future focus and increases your chances of success.

The first rule of a start-up is put some of your own money in the business. As the owner you must be willing to capitalize the business. The second rule is put as little of your own money as possible in the business. Prepare your plan and look for funding for your business from multiple sources, which can include a business loan or business line of credit.

Don't go it alone. Plan ahead now to build your team. Your team may include a CPA and an attorney that you work with as needed. Add a mentor from your industry and get a SCORE mentor to help you plan for success. No one has all the answers. You get more ideas and information by building a success, support team that can help you plan ahead.

3. Set up Systems.
The most basic system every business should have is a good financial system. Ask yourself how am I going to generate enough income to support myself and my family. Begin here. Put together a personal budget, so you know what it costs you to live. Now, you can move on to the business budget and sales planning, so you can see how many sales you need to break even and make a profit. The start-up expense plan, operating budget and your accounting software are vital to your success.

4. Seek out Sales.
The daunting question is how do you go about seeking out your first sale. Recognize that since you don't have a big ad budget to be seen by everyone, you need to target a niche and get connected in your market community, be it local, regional or national. You need other people selling for you-not employees-goodwill referrals. Get out and talk to as many people as you can. Join organizations that would have clients for your product or service. Become a visible part of your market, and then ask for the sale. You begin the sales process with people that you know. Yes, it's okay to start with friends and family as your first customers, and then broaden from there.

5. Aim for Growth.
The basic tenant of creating a company is that you own the company. You are not just creating a job for yourself. It's less risk and less investment to get a job. Building a business is creating a company that is more than the job itself. Think about the future. How large do you want the company to be in terms of sales, net profit and employees? Your answer to each of these questions will influence how you grow. There are varying costs and profits associated with growth. It's important to make a deliberate choice early about how you want to grow your company.

6. Leverage Opportunities.
Good luck. Good fortune. Good timing. All play a part in business. As a business owner, be very clear about your core focus for the business and how it serves clients. Your core business is what pays the bills. Then, as an entrepreneur you are about opportunity. When you see a potential opportunity or stroke of luck measure it against your core business focus. Good fortune is great, when it matches your vision for the business. Always consider if a good opportunity is the right fit for your business. If something looks great, but it's not in sync with your long-term plan and budget, think carefully before committing your company's resources.


Here are some Bank of America Coupon codes that put money in your account.

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Keep Business and Personal Finances Separate (Bank of America Coupons inside)

Small scale business people may often have problems managing finances. While most of the money they used to kick off came from their savings, most of their personal funds now come from their businesses.

Financial management is really a tough thing to do. But although it’s a given that business and personal money are often be intertwined (especially in the case of a home-based business), it is necessary to keep them separate.

The best thing to do is look at business as one entity and home as another. This works better, not just on the personal standpoint, but also on the financial one.

There are top 5 reasons why:

1. Your business is a hobby - There are several federal and state government policies that stipulate only businesses are allowed to deduct business expenses. Now let's say your business is more of a hobby and not a means to make considerable money. You may have a difficult time telling the government that you are indeed running a business and not a side hobby. Many business owners compound this problem by using a personal bank account too.
   
   
2. Lack of professional attitudes - The only way people will take your business seriously is if you do too. Accept checks made out to the business and not your own personal name. This establishes a divide between you and your business.
   
   
3. Taxation - Businesses are entitled to pay government taxes, and these don’t cover individual tax payers. When you merge finances, it will be difficult to determine the exact taxable amount rendered by your business every month.
   
   
4. Paper Trail - If in need of money for your business and considers availing of grants or loans, supporting documents (financial reports, etc.) are needed for approval. Financial management makes it easier to know which finances belong to your biz.
   
   
5. Growing Your Business - When finances are separated, you get to focus on your business without thinking of personal concerns. You will be able to see the business’ overall performance and decide on the best way to enhance it.

Separating business and personal funds is difficult, but is definitely an intelligent choice to do. By establishing a separate business profile, you will be strengthening the purchasing power of your enterprise. The simplest tactic to get underway is to open a business bank account. In every transaction concerning your business, place the name of the biz.

To help you out with your accounts here are a few coupon codes for you to use when you open a new account with Bank Of America. Hope this helps.

Bank of America Coupon Codes:

• Get $50 when you open a small Business Checking Account. Coupon Code: SBFOL2
  
  
• Get $25 when you open a Personal Checking Account. Coupon Code: CRREM2

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8 Steps to setup a Business Paypal Account

After reading the book How Come That Idiot’s Rich and I’m Not? I'm totally committed to setting up my own business. One of the requirements for that is to have a business account with someone like Paypal, because its very easy to handle all your online invoicing and payments.
Paypal is secure, reliable and most important of all - easy to use.

Here's how to set up a Paypal account for your business.

1. Print out these instructions

2. Click here to Set Up Paypal Business Account

3. Scroll down and click where it says: “sign up today”

4. Choose whether you want a personal, premier or business account

If this account is for your business, you should choose Premier Account or Business Account

Here’s the only difference: a Paypal Business Account allows you to set up the account under your business name. But you need to have a business bank account and wait for your Paypal Business Account to be approved.

If you don’t have a business bank account but you want your Paypal account under your business name, here’s how to get around it: sign up for a Premier Account, but instead of putting your name in the name field, put your business name. For example, if your business name is Acme Consulting, put “Acme” in the “first name” box and “Consulting” in the surname box.

5. Choose your country

6. Click Continue

7. Fill in all your info (see note above about business name)

8. Click Continue

After your account is set up you can pay someone by Paypal, or request payment (send an invoice) just by going to www.paypal.com and logging in to your account. It’s very obvious how to do it.



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How Come That Idiot’s Rich and I’m Not?

When I started reading the book, my first impression was: So here's another book that will tell me that I can buy real estate for "no money down", how I can make 6 figure passive incomes etc. I was right...but Robert is not telling you to give up your day job. All he is saying is that to become a Rich idiot, START NOW! Take action NOW! Accumulate cash, buy a home for your primary residence..then think of buying investment properties. Buy stocks/mutual funds, invest $100 to start but don't wait! . Start a business, it can be part time!
The 4 biggest assets that a Rich idiot accumulates is CASH, REAL ESTATE, STOCKS and BUSINESS!
I can totally relate to that. Most of us have some cash, own a home, buy some stocks, but very few of us really own a business.



I have been thinking about it for a long time and what this book did for me is to give me that final push!
I recommend this book to individuals who need that FINAL PUSH !

Book Description (Amazon)

Bestselling author Robert Shemin reveals for the first time the inner-circle secrets of the mega-wealthy. Have you ever wondered why some people attract wealth while others stay financially trapped and in debt? The key is wealth-friendly, upside-down thinking. Stick with all the old moneymaking rules and stay broke. Break them and get rich. This is the book that shows you how.

We’ve all read about the college kid who made millions on a brainstorm, or the couple who made a fortune in real estate, or the guy in his thirties who waved good-bye to his boss and now lives on his investments. But until now, how they did it—the rules they followed or flouted, the tricks they stumbled on—have remained a mystery.

That’s about to change. Whether you’ve been trying to get rich but haven’t quite made it yet, or just need the confidence to dream big, this is the book for you. As experienced as Shemin is at showing high-net-worth individuals how to get richer, his real love is helping self-described “financial disasters” earn millions. And he uses his own odds-defying story to illustrate the outside-the-box thinking that gets the job done. Here, you’ll learn how to:

• set only one powerful success goal—and make it a big one
• play while your money goes to work
• stop building someone else’s business and start building your own
• live and think like a millionaire while you’re becoming one
• use the power and “smarts” of other Rich Idiots to help you join the Rich Idiot Club
• add OPI (other people’s ideas), OPT (other people’s time), and OPE (other people’s experience) to do less and make more
• tap into timeless secrets that unlock the energy and spiritual power of money

Learn which three assets you must own to become a Rich Idiot and how to obtain them with little or no money of your own. Learn why Rich Idiots outearn almost all the so-called wealth experts and how you can, too. Above all, learn how doing just one thing a day will bring you to your big goal.

In this book, the first to show you what it really takes to achieve financial abundance, Shemin illustrates in a fun, witty way how going against the grain is, in fact, the surest way to gain. Spend just a few pages with Robert and his Rich Idiot friends and you’ll be convinced that “if they could do it, I can do it.”



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• Try to avoid these Investing Mistakes
• Saving for Kids College Education
• Best Kept secrets of financial planning
• Investing Strategy for building your Nest Egg

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