Glenn’s Business Tips – Accounting Made Easy!

Below you will find tips that will help accounting made easy.

1. Have your calendar become your boss
Keep a calendar with all your tax records. It will become your documentation that IRS will use during an audit to allow or disallow a deduction. Your calendar will also be used to validate your mileage deduction (one of the greatest deductions for the small business owner).

…
2. Setup & Maintain your financial files
If you must use a SHOE BOX it is better than nothing. Filing needs to be done on a routine basis. Here are some major files you should maintain:
-All Federal & State Tax Reports
-Monthly Bank Statements & Reconciliations (including copies of cleared checks)
-Customer and Vendor information file
-Insurance File, Business/Health/Life/Auto

…
3. Remember Cash is King
Regardless of how carefully you try to plan for the future there will always be circumstances and capital needs which have not anticipated. As a business owner, it is imperative that you maintain ample surpluses and reserves for such events.

…
4. Spend Money Only When It Benefits The Business
Many times I’ve had a client ask me, “I spent $1000.00 entertaining a customer, can I take that off my taxes?” Well, in years past you were able to deduct the full amount, however, today there are limitations. Even in the old days, assuming your tax bracket was 25%, Uncle Sam only picked up $250.00 (25% x $1000.00) of the tab.  Now, do not get me wrong, there is nothing wrong with entertaining your customers; this same rule should apply to all of your business expenditures whether for equipment, materials, services, employees or supplies.

…
5. Use a bookkeeping system
Some examples are:
-Excel
-Quicken or QuickBooks
-Microsoft Money
-Peachtree Accounting

…
6. Prepare & Review Monthly Bank Reconciliations
As an owner you do not have to actually do the reconciliation but stay actively involved in making sure that the reconciliation is accurately being taken care of.

…
7. Hire out when you can
Hiring a local accountant to handle all your financial transactions is a good idea. If you are worried about the costs, hire someone on a part-time or hourly basis.

…
8. Maintain separate checking accounts
One account for personal and one account for business. Having two accounts is tax-smart. It will also help with easy access to your files. At the end of the year, all your income and expenses will be in one place, making record keeping and tax filing easier. I personally recommend at different banks for various reasons.

…
9. Save money
This sounds simple, but many people don’t actually do it. The discipline of saving will become more valuable than the actual money you save. You will be amazed how quickly your savings will grow when you are consistent in this one area.

…
10. Ask for business
You are your best form of advertising. Having an elevator speech, professional flyers and business cards are TOOLS of your trade. Learn to use them productively in every situation you find yourself.

I am here to help and I am passionate about helping small businesses grow!

Glenn Sarver, GSRC Consulting
770-265-2448
glenn@qb-proadvisor.com
http://www.QB-ProAdvisor.com

Southern Hospitality & Marketing – Recipe for Success

The mixed aromas of homemade Beef Stew, Brunswick Stew, Chili, corn muffins and berry cobbler wafted from the kitchen of the Rexall Grill, as The Duluth Merchants Association members arrived for the February monthly meeting on Tuesday evening.

Great food and pleasant conversation in the Rexall Grill’s relaxed atmosphere set the tone for a positive meeting.  The DMA Marketing, Communications & PR Committee (MCPR) served up  their own tasty dish,  the “DMA Membership Benefits and Tools” presentation.

Webmaster Albert Marquez (Planet Earth Adventures) stepped Members through how to fill out and update their Profile in the Membership Directory, including adding business logos, images and hotlinks back to their business websites.

DMA Monthly  GAB-RRR Newsletter Editor, Sunny Ramsay (Gwinnett Medical Center – Duluth) advised members of the new benefit of  FREE quarter page ads every month, in our newsletter which has both a member and community readership.

“DMA Member News” Editor Sheri Eppright (Positive Public Image) reviewed the advantages of  “DMA Member News Page,” encouraging Members to submit press ready articles to promote their businesses, and events.

Sheri advised everyone that when articles are written properly, with website hotlinks and keywords, Google search results often find these articles within 30 minutes of publishing.  Sheri said, “Member News” articles are a  quick and easy way to promote your business, and establish yourself as a SME – Subject Matter Expert.”

The MCPR Committee has a follow-up session planned for March/April time frame at The Work Spot, where DMA members will be able to get one on one assistance with the Membership Tools if desired.

Host, Linda Alley, presented her marketing approach for growing her two businesses, Rexall Pharmacy and Rexall Grill.  Rexall Grill has been a historic community landmark for years. Linda’s remodeling plans expand both her hours and services offered…she has already added catering to her menu.

“DMA promotes both our local businesses and community prosperity,” President Jim Johnson (JMS Consulting) added.  “When local businesses grow and can better serve the community, both community and  business prosper.

Linda’s current marketing focus is through advertising on digital monitors recently installed in the Rexall Grill.  Additionally using geo-targeted marketing, she plans to text out daily or weekly Rexall Grill specials to loyal fans who have signed up…discounted chocolate cake, here we come!

James Moss of AdNetworks (and a member of the Marketing Communications & PR Committee) and his team followed Linda with a brief presentation to further explain his goal…  bringing digital marketing to the community through the use of digital monitors with pricing solutions designed to meet the needs of small business owners.

Reminding us of the tasty food and good service, Linda handed out $5 gift certificates to attendees, to ensure a quick return to the Rexall Grill for more great food and southern hospitality…see ya’ll soon!       By Positive Public Image, Inc.

If You Are Not Working in Your Business to Sell it, You Are Still Buying It

(Jim Johnson, of JMS Consulting is also current President  of Duluth Merchants Association.)

The Atlanta Business Chronicle January 20th issue quoted bizbuysell.com that the average sales price of area businesses slipped 6.5% in 2011.  The old saying is that if you are not working in your business to sell it, then you are still buying it.

Walden Business Inc. VP Sara Burden said “If an owner is able to demonstrate that their company can with stand the challenges faced since 2008 and grow in spite of the difficulties presented, they have every reason to expect and receive good prices for their businesses.”

At some point most businesses represented in the DMA membership will sell their business or just close it down with no long term return on time and money invested.  That means you have to be in the mode everyday that you are preparing to sell your business.  Thus you have to employ all the latest financial, legal, management, marketing and sales processes available in today’s environment.  If you don’t have all those skills you better acquire them yourself, partner up, merge, or seek help.  That is unless you want to sell your business at a low price.

So what does this have to do with DMA?  Well, a business association has the opportunity to create an environment where its membership can have some enjoyment, obtain referrals, seek business from other members, and learn what it takes to grow their business, learning and implementing all the processes stated above.    Some would argue that it is the sole responsibility of the owner to deal with everything.  This is true up to a point, but why belong to a business association if you can’t get some value out of the membership?  That means a business association is assumed to provide opportunities for members to acquire the skills necessary to place their business in the best position to be sold at a good price

We are into our second month of the DMA 2012 year.  We have some members stepping forward to take leadership roles, attending meetings, and others sitting on the sidelines and some feeling it is not a good use of their time. So far we have said we want to provide education, have a trade show, network, and provide referrals to each other.  It will take some time, but I think it is worth the time investment to accomplish our minimal goals.

I look forward to seeing everyone volunteer, attend the DMA events and learn to use our resources…..Jim Johnson