The QuickBooks Team Blog

Manage your cash flow

Some words of wisdom from Philip Campbell about Cash Flow

1. Never Run Out of Cash

Obvious, but there's something important about writing it down and promising yourself.

2. Cash Is King

3. Know the Cash Balance Right Now

4. Do Today's Work Today.

What's that motto, don't put off tomorrow what you could do.

5. Either You Do the Work or Have Someone Else Do It

6. Don't Manage From the Bank Balance.

7. Know What You Expect the Cash Balance to be Six Months From Now.

8. Cash Flow Problems Don't "Just Happen."

9. You Absolutely, Positively Must Have Cash Flow Projections.

10. Eliminate Your Cash Flow Worries So You Are Free to Do What You Do Best - Take Care of Customers and Make More Money.

Some of the above sounds obvious, but is always to be reminded of the critical few things to focus. On for more from Philip Campbell

July 4th and SBOs

Happy July 4th (Since many folks will be leaving tomorrow early for the long weekend), I thought I would jump on line tonight and say that Intuit (Quicken, QuickBooks and Turbo Tax) all salute SBOs (Small Business Organizations) -- the backbone of America.

We support SBO's financial independence!

And... since many of you (Small Business owners) will be working this weekend, know that you are not alone. There are many small businesses out there, working the cash register with you.

Some tips to help you get on track for financial independance:

- write down your financial goals: research has shown that if you write down you goals, you increase the probability of reaching htem.

- put specific amounts of money away each month (again, write down what you will put away)

- continue to do the work you love: this will make it seem as if you have more freedom

- save, save, save (yea, i know that this is not that original)

- put together a budget: it is amazing how we spend money.

- research your state and local tax laws.

- remember -- lots of stuff can be a tax deduction :  )... these include supplies, business cards, gas, phone bills, internet access and more

So again, Intuit salutes Small Businesses and the American Entrepreneurial Spirit! See below.

Fourth of July Websites

Alphabet Soup's Fourth of July
Betsy Ross Home Page"
"Billie's Independence Day Page"
Charlene's 4th of July
Declaration of Independence
Fourth of July Celebration - 20ishParents.com
Fourth of July On The Internet
Cyber Grandma's Independence Day Page
Dazzle's Fourth of July
Family Corner Magazine
"Happy Fourth of July"
The Holiday Spot 4th of July
Independence Collage
Independence Day On The Net
Kidz July 4th Clip Art
Mandy's July 4th Links
Marvelicious Patriotic Background Sets
My Mom Is A Survivor Cookout Recipes
Practical Kitchen 4th of July

Best Small Companies to work for

Fortune just came out with its list of the best Small Companies to work for:

1. Badger Mining Corp., Berlin, Wis

2. Pacific Service Credit Union, Walnut Creek, Calif

3. The RightThing Inc., Gurnee, Ill.

4. Insomniac Games Inc., Burbank, Ca.

5. Northeast Delta Dental, Concord, N.H.

6. McMurry Inc., Phoenix, Az.

7. Dixon Schwabl Advertising, Victor, N.Y.

8. Professional Placement Resources, Jacksonville Beach, Fla.

9. Bridge Worldwide, Cincinnati, OH

10. Johnston McLamb, Chanitilly, Va.

11. Urban Innovations Ltd., Chicago, Ill.

12. Triage Consulting Group, San Francisco, Calif.

13. Ribelin Sales Inc., Garland, Tx.

14. Matrix Resources Inc., Atlanta, Ga.

15. Schleuniger Inc., Manchester, N.H.

16. B.I.N. Sales & Marketing Inc., Norwalk, Conn.

17. Dolphin Quest, Middleburg, Va.

18. Kahler Slater, Milwaukee, Wis.

19. InsureMe, Englewood, Co.

20. Root Learning Inc., Maumee, OH.

21. DigitalGrit Inc., Boonton, N.J.

22. archer>malmo, Memphis, Tenn.

23. Runzheimer International, Rochester, Wis.

24. Landrum Human Resources Company, Pensacola, Fla.

25. The Brattle Group, Cambridge, Mass.

Trusting your friend

Warren Buffet just announced he's giving away all his money before he dies. Well, not quite all of it. But $44 MM or some 85% of his estate. Most of it is going to the Bill and Melinda Gates Foundation. While this will be the largest single gift in history, there is another thing I find interesting. Even though Buffet is an astute investor, he is giving his $$ to a a group of people he trusts. (After all, no one can debate his ability to place his dollar bets wisely) And to one of his closest friends. (And there is absolutely nothing like partnering with a friend on a project). When asked about why he gave his money to the Gates' to invest, he told a story about how 50 years ago, 7 of his friends gave him $150 to invest because they trusted his expertise. So, after observing the foundation in action for the past few years, Buffet felt as if he could trust Bill and Melinda.

If you were the 2nd richest person, what would you do with your money? Or if you could partner with you closest friend and do something special, what would it be?

Being a small business owner, I would: 1) donate books and magazines to schools all over the country, 2) invest in schools' technology --- everyone has access to the web, and 3) help kids who have reading disabilities or dyslexia. I am passionate about helping people (not just kids) learn how to read.

Stay on top of your finances

OK. Confession time:

The few times I have managed a business, I was afraid to ever stop working. Like the Everready Energizer Bunny, I just keep going and going and going…

(Even though I do wear dark sunglasses on the weekends, that picture does not resemble me in anyway)

Working non-stop is common problem with entrepreneurs. Specially, those that own small businesses. No, their behavior is not just the result of them being obsessive compulsive or a perfectionist (if you are not sure, take a test)

Instead, Entrepreneurs fear that if they stop working, the money will stop coming in. That the company will come to a stand still. So, you just go on auto-pilot, working non-stop.

Hey, I am not going to sit here and preach, and tell you how important it is to smell the roses in life. I know what it feels like when you think the survival of your business is on the line.

I am not going to sit here and tell you how important the work life balance thing is. Because for almost all small business owners, their work is their life.

What I will say is that a lot of time entrepreneurs don’t stop working because they have no idea how well they are doing. They have no idea if they are making money or loosing money. Or they keep their information on a white board some place in the back office.

The main problem is that many entrepreneurs do not know how to manage their company’s growth. 

So, it’s definitely important to get a handle on what is going on financially with your company. Where money is coming from and where it is going out (and if you are in a cash business and use a cash register, this is especially important cause you want to keep an eye on your employees that are handling your dollars).

You need to maintain complete and accurate records, so that you make life easier for you and your accountant. This will let you know if you can in fact you really can take a breather. Here are some additional tips or questions to think about so you can ‘keep an eye’ on your finances (and hopefully so you can eventually take that break)

1. Remember that good bookkeeping habits can give you tighter control over your cash flow while helping you run your business more effectively.
2. Consolidate transations in one place with a logical bookkeeping system. Not an abacus, not a shoe box, and not on a white board. The last thing you want to do is scramble around to find a lost receipt or a customers’ order
3. Tap the power of financial reports to provide insight into cash management questions. You certainly want to know what are your best selling products, who are your best customers      and where your cash went last quarter (again, keep your eye on the guy by the cash register!)
4. Plan for future cash needs by staying on top of your company’s financial healt

 

Good planning (and help from an accountant or consultant) will keep you from functioning on autopilot. And will keep you from worrying about your business.

Take a step back -- writing a business plan

Writing a business Plan:

Time to step back and list some basics for writing a business plan.

(From time to time, we will provide some tips on how to get started with your business. But if you are like some of the businesses we have spoken to recently, you probably just started ---- gained some traction and had some success, ....and then realized you need to write a business plan).

Here are some basics:

• Develop a situation analysis: Normally this will include a market analysis, a SWOT analysis (strengths, weaknesses, opportunities, and threats), and a competitive analysis. The market analysis will include market forecast, segmentation, customer information, and market needs analysis.
• Describe your target audience: Gender, age, psychographic, demographics, etc.
• Determine your mission statement, objectives, and focused strategy including market segment focus and product positioning.
• List out your competitors
• Develop Sales Forecast: Break it down by month… by product, .. by segment,
• Figure out your expenses: Do this month by month. And remember. At the end of the day, you will probably spend more than you ever thought.
• Plan for the worst – think through different scenarios… think about the risks ..                 write up some contingency plans.
• Launch a blog – If you are not selling on the web, and then launch a simple blog which you can     use as your website.
• Put down a marketing budget for advertising
• Design a pricing strategy based on what potential competitors are doing, based on costs,      based on what you think your buyers will pay.

 

Harold Rosenbaum Chartered Accountant Extreme Pt. 5 Damn, It's Exploding

Harold Rosenbaum Chartered Accountant Extreme Pt. 4 Ledger Lad Liquidation.

Ledger Lad Liquidation.
Enjoy

Ken Burns "History..is the greatest teacher"

Ken Burns, the film maker,recently spoke at Lehigh University's graduation.... 

"It may seem paradoxical, as you stand looking forward toward an unknown future today, that history might be for you all an important ally and guide in the years to come, that it might offer you choices and exemplars that will help you negotiate the difficult passage you have committed to, poised as you are to start a new and challenging chapter in your own life's history. But it is so; history, I have learned over the last 30 years of practice, is the greatest teacher there is. The question becomes for you, then, this new next generation: What will you choose as your guiding light? Which distant past events or individuals will provide you with the greatest help, the most comforting solace, the best examples of wisdom and leadership? As the echoes of this almost inexpressibly wise past reverberate in your own lives, what warnings will you heed, what strength will you gather to slay the dragons of despair and disappointment that will inevitably invade even the most cheerful and controlled and controlling among us?"

Does it really matter whether we are talking about graduation or our own path in life...

Harold Rosenbaum Chartered Accountant Extreme Episode 3: The Taxable Trap

Episode 3: The Taxable Trap

For Episodes 1 and 2: