Five Cash Leaks to Avoid

Cash flow improvement is a hot issue for small businesses; in many businesses, it seems like there is never enough cash when you need it.  The last thing a business owner wants is to reduce their cash balance unnecessarily.  To help you preserve or increase your cash, here are five cash management leaks to avoid.

1. Bloated Bank Fees

Some banks are more business-friendly than others.  We recommend you assess the fees you are currently being charged to see if you can discontinue any unnecessary services. 

•  Could you maintain a cash balance to avoid monthly fees?
• Are you being charged online banking fees and bill pay fees, and are these still necessary?
• Are you being charged for a high volume of transactions or cash drawer services, and are these competitive with other banks? 

Banks, including national brands, that have not kept up with technology and have not automated a significant amount of their transactions are inefficient and must charge higher fees to cover their processing costs.  If your accounts are located at one of these costlier banks, you do have a choice. 

2.   Overtaxed

Are you sure that you are paying the lowest amount of taxes you legally owe?  There are several places to look to make sure you have not overpaid taxes anywhere in your business or personally:

·         Payroll taxes

·         Sales and use tax

·         Franchise taxes

·         State and local income taxes

·         Property taxes

·         Federal income taxes

·         Taxes that are specific to your industry

In preparing income taxes, a few of the easiest items to overlook include carryovers from prior years and new deductions you become eligible for.  If you received a large refund this year, congratulations, but that means you gave Uncle Sam an interest-free loan on your money.  You can do better next year by estimating your tax payments and paying only what’s due.   

3. The Check Is in the Mail

Customers who take too long to pay you are big cash drains in your business.  Consider changing your terms, asking for deposits, or becoming more aggressive with collections to bring your DSO (days sales outstanding) down.  When you do, you’ll get an instant, permanent cash flow improvement.      

4.  Sweat the Small Stuff

You may have an eagle eye on your largest bank account, but what about your other cash stashes?  PayPal, petty cash, and business savings accounts are among the places that may not get daily scrutiny.  Make sure those accounts are properly reconciled and have the proper controls in place so funds don’t go missing. 

5.  It’s in Your Interest 

A nice problem to have is when your bank balances get too large and you don’t need the money immediately.  Make sure that money is still working hard for you by putting the excess in an interest-bearing account.  It’s not much these days, but every little bit helps.

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Make a Dash to the Cash  

If we can help you plug any of these cash leaks in your business, please don’t hesitate to reach out and let us know.

The Fine Art of Prioritization

Running a business usually means putting in over 40 hours a week.  In fact, if you’re the typical entrepreneur, you have more ideas you want to implement than you have time for!  That’s when proactive, strategically executed prioritization can make all the difference. 

So Hard to Choose    

If you have lots of ideas in your head or on your “to do” list that are not getting done, you’re certainly not alone.  Here’s a process for helping you decide what to do first, next, and not at all. 

Step 1:   

Write down all your ideas, tasks, “to do’s,” projects, and even items you need to do on a daily basis.  Use a spreadsheet and list each item in a row by itself.  Later you’ll want to be able to sort the list, so we recommend using Excel or another spreadsheet software. 

Once you have everything down on paper, you will be amazed at how much this unclutters your thinking.  You will also have all your great ideas captured so you don’t forget them.  You might also get very overwhelmed, but don’t stop now.  Relief is on the way.

Step 2: 

Add some information about each item, creating four additional columns:

A.   Is this item about working IN your business (client work, overhead, etc.) or ON your business (new products or new services, developing procedures, hiring more staff, marketing, creating new partnerships)?

B.    Is this item revenue-generating?  Or will you lose revenue if you don’t get it done?

C.    Can you delegate this task or does it have to be done by you?

D.   If you were to hire someone to do this task, how much would it be worth per hour?

Step 3:   

Analyze your choices.  Once you have these additional items filled in, you can go wild with opportunities.  Here are some very cool eye-opening activities to try:

• Separate tasks that are working ON vs. IN your business.  There is never enough time to work on your business, so force it by blocking out a few hours or a half-day a week and do it, no matter what.  It might be the best way to make progress in your business. 
  
• Sort the list by how much revenue the task could generate or how much potential it has, and decide how to prioritize from there.  If you need help calculating the ROI, return on investment of an idea, we can help you calculate that. 
  
• Take a look at what you marked “not able to delegate,” and ask “why not?”  Does a procedure need to be written?  Do you need more staff?  Does your staff need training?  Or do you need to learn to let go?  Whatever it is, and especially if there are a lot of these items, get these roadblocks tackled so you don’t become the bottleneck in your own business.
  
• Sort the list by “column D” above, the market value you recorded for the task.  Then ask yourself what your hourly rate is.  How many tasks are you doing that are below your hourly rate?  Hiring someone to do your lowest level tasks could very well be another item you need to add to your new “to do” list! 

This last one is really important, because it can so strongly affect the profitability of your business.  The last thing you want to do is go backwards and give yourself a demotion with a pay decrease, but that’s exactly what you’re doing each time you do a task yourself that’s at a low market rate. 

Step 4:   

Prioritize with confidence.   With all of this information in an organized spreadsheet, you will gain the clarity you need to make some powerful decisions about how to spend your time.

Time

There’s nothing more precious and scarce than our time.  Every day, we have a choice about how to spend it, but too often we get caught up in the urgent, but not important, daily fires.  This exercise helps us take a step back and look at what’s important instead of what’s urgent.  

Is Hosted QuickBooks Right for You?

If you are currently using the popular QuickBooks desktop software, you now have a fairly new option available to you:  hosted QuickBooks.  In this article, we’ll talk about what it is, what type of businesses it’s right for, and how to get started if you decide it’s for you.

A Host of Opportunities

 

Hosted QuickBooks changes the location of your QuickBooks company file from your local computer to one of the dozen authorized QuickBooks hosting companies.  You then access your QuickBooks file through a secure Internet connection.  The good news is you continue using the exact same QuickBooks software, screens, forms, and reports that you are comfortably familiar with, so the additional learning curve is extremely low.   The two biggest differences are:

• You access your QuickBooks differently; instead of accessing your local software, you will access the same version of QuickBooks software via the cloud on a secure server provided by a hosting vendor.  You will most likely access your QuickBooks by clicking on a desktop icon or accessing a screen and entering your login information.
  
• The pricing is different.  Instead of paying a large software fee at the beginning and then optionally paying for annual upgrades, you pay monthly, like a lease.

There are a few other very minor differences, such as how you back up your file, how you print checks, invoices, and other forms, and how you interface with other software such as Microsoft Outlook® or Word®.  At most, the learning curve for each of these minor changes is five minutes top for any user.       

Who Benefits

You will benefit from hosted QuickBooks if any of the following are true:

• You, your team, your bookkeeper, or your CPA needs to be able to access your QuickBooks files from multiple locations.
• You are spending at least one hour per month restoring the file from one location to another.
• You have experienced errors in the past from backing up and restoring the company file or the Accountant’s Copy because of passing it back and forth among people who need to update it or to get information from it.
• You prefer to save the time it takes installing QuickBooks and applying the upgrades to QuickBooks software.  With hosted QuickBooks, the hosting vendor takes care of all of that.
• You do not have a recent backup of QuickBooks and forget to take backups on a regular basis.  With hosted QuickBooks, backups are a routine part of the process. 
• You’re great at working on the core items of your business, but want to reduce time spent on IT-related tasks. 
• You dislike or feel inadequate when it comes to technology, and you agree it makes sense to outsource as much as possible.    

Any Concerns

Hosted QuickBooks is great, but it’s not right for everyone.  If you feel “safer” with no one having access to your QuickBooks, then hosting it may not be right for you.  Although the data centers are far more secure than the PCs in most people’s homes and offices because they have to undergo a rigorous security audit to become a hosting vendor, some people are simply uncomfortable passing their financial data to others.  If you want to consider hosted QuickBooks and wonder about security, we’ll be happy to have a conversation with you about that. 

Hosted QuickBooks is also not right for people that are using very old software versions because you may be forced to upgrade to a newer version. 

Hosted QuickBooks is also not right for people who have much more free time than budget.  Although hosted QuickBooks is not particularly expensive, there is a cost outlay that will buy you time savings.  If the free time you gain (that you can apply to completing more important priorities in your business) is not valuable to you, then hosted QuickBooks may not be right for you.   

Getting Started

Before moving to a hosted QuickBooks solution, your accounting professional will want to ask you questions about how you are using QuickBooks, if they aren’t already familiar with your requirements.  Selecting the right hosting solution means evaluating:

• What version and line of QuickBooks you are currently using because this has to be exactly matched with the hosting vendor.
• What other applications access QuickBooks, such as online banking and payroll. 
• What add-ons you are using with QuickBooks, if any.
• What printers, Microsoft software, email software, and other peripheral needs you have when using QuickBooks. 

Once those answers are gathered, your accounting professional can provide you with some hosting solutions, costs, and implementation plans.  Most accounting professionals partner with one or more hosting companies so that you can get a seamless one-stop shop experience.  You may also be able to benefit from volume or package pricing through your accounting professional.       

If you are thinking that hosted QuickBooks might be right for your business, please email us or give us a call so we can talk more about it. 

Have You Been Hacked? How to Minimize Your Risk

Just about every day, we read in the news that another company has been hacked.  You might have already been directly affected by the password thefts at LinkedIn last year or Evernote this year.  Or you might have had your own social media account, email, website, network, or computer hacked.  Worse, many of you have been hacked but don’t even know it. 

So how can you minimize the damage and risk of hackers?  Here are several tips, some familiar, some not so familiar.  As you go through the list, check off the ones you’re already doing and make a list of new ideas to implement to protect your business and personal assets.    

Signing Your Life Away

Your signature might look great in a graphic in your email signature line, your website, or your newsletter, but it’s a huge risk.  You’re giving away your handwriting, and forgers can easily replicate, master your handwriting, and impersonate you.  To reduce identity theft, don’t publish your real signature anywhere. 

Money, Honey

Implement strong passwords on all of your financial accounts:  banks, credit unions, PayPal, credit cards, and your accounting system.  We know it’s painful, but do not use the same password for your financial accounts anywhere else, especially social media!  If possible, use a different password for each account to reduce risk further. 

What’s Your Password?

Here are some quick password tips:

·        Do not use your name, your pet’s names or your kid’s names in your passwords.  There’s just too much information available publicly to do that safely anymore.  Mix up letters, numbers, capital letters, and special characters, if they are allowed. The longer, the more secure; most apps require at least 8 digits.  Change passwords quarterly to be on the safe side. 

Password Storage

Most apps that help you save time with passwords are NOT safe!  Here’s what we do and don’t recommend: 

DO:

·         Password-protect your computer, even though you don’t have to.

·        Keep a separate file of your passwords on your computer, but DO password-protect that file and make sure it is not shared with anyone on a network.  Also name the file something totally unrelated like bio, letter, or goulash recipe; do not name it “passwords.doc!”

·        You can also keep a record of your passwords offline, but be sure to lock it up in a safe. 

·        When you make file and disk backups, be sure those are locked up and password-protected too.  They will no longer have your PC password to protect them. 

DON’T:

·        Don’t give in to your browser or any website when it asks to remember your user ID and password, especially for your financial accounts or client information.  All of the major browsers have been hacked – Internet Explorer, Chrome, Firefox, and even Safari.      

If you use password management applications, proceed with caution.  Be sure you have properly vetted their security claims.  Most of these are simply form fillers that are not safe.    

Vulnerable Applications

Avoid leaving vulnerable PC ports open and unattended, including chat, messaging, FTP (file transfer protocol), Skype, webinars, Google hangouts, video sharing, and the like. It’s like having all the doors and windows unlocked in your house; an intruder has a lot of choices for easy entry.  When you are on these more vulnerable connections, shut the others down, and close the applications you don’t need.  Then log off when you are done. 

A Plug for Software      

As soon as a hacker has found a new exploit, the software companies will learn about it and make an update available within days.  The hacker community is tight;  other hackers will look for software that is not updated and exploit the hack.  Avoid the copycat hackers by staying on top of your software updates, not just your anti-virus, but also your Microsoft and other software updates.  Doing this will eliminate a great deal of the risk out there. 

New Users

If multiple team members need to access your software, consider setting up additional users rather than having one account.  If one person gets hacked, the others will likely still have access and can react quicker to the intrusion. 

Stay Safe Out There

How many of these are you already doing?  Give yourself a reward, and then get busy implementing the rest so you can stay safe.  

Seven Strategies to Put the Spring into Your Sales

Spring is here and that’s the perfect time to try something new in your business to make things fresh.  Here are seven ideas to try in your business; pick the one that’s most likely to put the spring in your sales. 

      1.       BOGO

“Buy one, get one” or BOGO deals are always hot and never grow old.  Even if it’s not common in your industry, see if you can adapt and create a deal like this.  The best thing about a BOGO strategy is it spreads more of your product or service around to a wider customer base, which can spur referrals or word-of-mouth, the best kind of sale. 

Here’s an example of a BOGO applied to a service: Purchase a seat at a training workshop and bring a co-worker at no extra charge (or charge the price of materials and lunch to cover costs).  You can also offer one month free (cheaper than offering 10 percent off on an annual basis) if you have a service that is performed over time. 

      2.      Weekend Sale

Sales can move a lot of people to action.  The key is to limit the time that they can get the discount to a very small window.  Hold a time-limited sale when it is slow for you (could be during this month when people are hit with tax bills) to boost your volume. 

      3.      Freshen Up Your Displays

If you have a storefront, when is the last time you’ve freshened up your look?  Retail businesses work hard at this, but even if you aren’t in retail, take a look at what the customer sees.  Is it inviting?  Fresh?  Pleasant?  If not, do some spring cleaning!

If you work from home or have a virtual office, your website is your storefront.  See if it needs some spring cleaning so that you look more attractive to your prospects and clients.  

      4.      Introduce New Features

Make a slight change to your existing product by adding a new feature, offering it in a new color, or something similar.  It will feel a little fresher to your clients, which may cause an increase in perceived value. 

      5.       Start a New Niche

Once you’ve gotten a couple of clients from a new industry, you’re off and running.  You will be able to learn from working with this new industry, and then you will be more valuable to others in that space. 

Take a look at your client list, and see where you have just a few clients in the same industry but would like more clients like them.  Then go for it!

      6.      Flavor of the Month Club

Baskin-Robbins used to have a “flavor of the month” so that customers would be enticed to come into their ice cream shops over and over again.  You may be able to have an “item of the month” or even a VIP club where your customers get something new each month.  Your VIP Club could also include priority treatment with specials or discounts.  VIP clubs done right are especially effective in restaurants and retail, but can work in other industries too.  The goal is to increase the frequency of visits to your business by enticing clients to become regulars. 

      7.      The Biggest Opportunity of All

We often overlook the top opportunity that’s under our own noses:  our current and past clients.  They trust us the most, which is the highest hurdle to new business.  If you haven’t contacted your top clients in a while, make a point to reach out.  More sales could be just a phone call away.  

Now it’s time to spring into action on the one idea that resonates most for your business.

RSVP For the Spring Networking Mixer

Email Marketing You Can Trust

Spring Networking Mixer

Business Networking

Speical Promotions

Raffles

Meet & Greet with Local Businesses

Finger Foods & Cash Bar

Bring plenty of business cards!

Space is limited Click to RSVP before it's to late

April 17th 5:30pm to 7:30pm
at Famous Legends Restaurant

Essex Road, Raymond NH

Five Favorite Freebies You Can Steal

If you’re looking for ways to boost your productivity, technology is a great place to start.  The good news is there are many free options available.  Here are five favorites you might not know about. 

1.    Bridge lines. 

If you need teleconference lines, you’re in luck:  there are many high-quality options that are completely free.  You can have several people, even hundreds, dial into a line and conduct a meeting or training session via the phone.  You can record the session and download the recording as an MP3 file that can be played on an iPod.

Some of the more creative ways to use these free teleconferencing services include:

• Staff meetings when someone is absent so they can listen later.
•  Free teleconference, providing tips to all your clients.
•  Free teleconference, allowing prospects to call in and sample what you offer or find out  what you’re like to work with.
•  When you need to record anything. (You often need 2 people on the line to be able to record, but not always.)
• To record a quick training session or how-to that can be distributed later.
• To have a client record a testimonial you could put on your web site.
• To record a meditation or therapeutic session you can listen to over and over again.
•  If you’re a coach or trainer, you can record the client training session and give the download as a service perk.

Our favorite:  http://www.freeconferencecallhd.com.   

2.    FileZilla.

The FileZilla client version allows you to transfer large files between computers that are connected to the Internet using FTP (File Transfer Protocol).  It’s handy for many reasons: 

• When you need to load large files such as videos or audios to your website
• When you need to upload something to an artist, a transcriptionist, a warehouse, or other supplier.
• When you have documents such as white papers that you want people to have access to but don’t want to have to keep contacting your webmaster

Download the FileZilla client and find out more here:  http://filezilla-project.org/

3.    Gmail.

It’s just a great idea to have a backup email address in addition to the primary email address you use.  Gmail is perfect for this. 

Go one productivity-boosting step further, and make your gmail account the one you use for all that email you don’t need to read as frequently.  This could include notifications from social media like Facebook, Twitter, and LinkedIn, blog notifications, list posts, Google alerts, and any other nonproductive email, you don’t need to 

respond to. 

Open your Gmail account less often than your primary email (even once a week if you dare) and gain that productivity boost.  You’ll have freed your inbox from a bunch of clutter and can focus on your clients’ and employees’ emails instead. 

Visit this site to find out more:  https://mail.google.com

4.    WordPress.   

WordPress is free blog software that you can install on your web site or blog site.  Once installed, it’s super-easy to use for both blogging and a website.  You can add photos, graphics, white papers, videos, and audios to the library to put on your blog or your site. 

It’s also great for search engine optimization; the search engines love it and will rank you higher when you blog and post fresh content. 

Visit http://wordpress.org/ to find out more. 

5.    Ning. 

Ning is a community platform where people can come together and post a profile, participate in discussions, join a group, and interact.  Not all business models will benefit from Ning, but many of you are involved in a club, church group, nonprofit organization, or community where Ning could be very helpful. 

Ning is almost free, at $19.95 per year or $2.95 per month, but it’s such an amazing platform, I include it here.  Whenever you’d like to have a private (or public) community of people who are joined by a common interest, Ning can provide that extra online community connection that can help you group interact and bond even more.    

Find out more about Ning at http://www.ning.com.  

What are your favorite freebies?