If you run a service based company, time is your inventory. Accurate tracking of employee time and material spent on a project is clutch when it comes to managing projects.
While it may be tempting to stick to spreadsheets to track time and expenses they are limited in their capabilities and more often than not lead to inefficiencies in tracking project statuses and budgets. Not to mention that they block your project managers from getting the real-time information they need to measure progress and make informed decisions.
Many companies that use time-based billing are beginning to turn to timetracking software for its enhanced time and project management capabilities. The right timekeeping system allows your company to track employee time and attendance to ensure your employees' time and talents are being utilized and you have the right workforce in place. It allows department heads and projects managers to clearly see the time and resources spent on tasks and projects. More accurate time tracking means you are less likely to miss billable hours when it comes time to invoice.
The project management capabilities within time tracking software help you keep up with project statuses and see how company time is distributed among clients, projects, tasks, and employees.
Are you using spreadsheets for project management? Download the white paper Using Spreadsheets for Project Management: Understanding the Hidden Costs to see how investing in a web-based project management solution could save you money, time, and aggravation.
A study conducted in 2007 showed that nearly 25% of business owners have been victim to fraud.
Unfortunately, just about every company is susceptible to some sort of fraud. There are different forms of fraud ranging from check fraud to embellishing expense accounts, and third party kickbacks. The tactics differ, but the results are always the same, loss of valuable company time and resources.
But that doesn't mean that they have to fall victim to it. Developers for ERP system software and accounting software systems like QuickBooks Enterprise are making it easier for businesses to detect fraud.
Don't fall victim to fraud, learn how to protect your company. Download the white paper "Protect Your Business from Fraud" for simple steps in how to secure your company's financial information.
We've all been hit really hard by this winter weather, so what better way to relax than with a good book? We decided to take a break from our usual accounting basics and ERP software talk to compile a book list for you. Check out some of our favorites that made it to our 2010 Winter list
Make Today Count - John C. Maxwell (Center Street) This is the second time Maxwell has made it onto our reading list. (Check out the other time here). Maxwell's book discusses the importance of making the right decision in twelve critical areas of your life, or what he refers to as the "Daily Dozen." Maxwell suggests the path to being successful starts small with making the right choices on a daily basis.
The Narrative of the Life of Frederick Douglass -Frederick Douglass(Fall River Press) Considered a milestone in American history, The Narrative of the Life of Frederick Douglas chronicles the life of the famous abolitionist. Originally published only seven years after his escape from slavery, it became an instant success.
Common Sense -Thomas Paine (Penguin Classics) This is the pamphlet that started it all. First published in 1776, Common Sense challenged the authority of the British government and the royal monarchy. What made his writing so popular? He didn't try to wow the masses with philosophy, instead he wrote for his audience, not above them, impassioning them to want to make a change. It's still as inspiring today as it was nearly 250 years ago.
Embrace the Struggle- Zig Ziglar and Julie Ziglar Norman (Howard Books) Written after a traumatic fall that lead to a head injury Embrace the Struggle discusses the importance of optimism to get us through the hard times we all eventually face. Through his own stories and the stories of friends, Ziglar highlights "living life on life's terms."
Exploiting Chaos: 150 Ways to Spark Innovation During Times of Change- Jeremy Gutsche (Gotham Books) Hailed by many as one the best business books of 2009, Exploit Chaos takes readers on a visual journey to help ignite ideas for a successful business. Gutsche's writing style and graphics fit in perfectly with today's busy reader. Looking for inspiration to put these challenging times to good use? Check out this book.
The Findability Formula: The Easy, Non-Technical Approach to Serach Engine Marketing- Heather Lutze (John Wiley & Sons) Ever wonder how customers are thinking when they search for a product or service? Lutze's book helps marketers at all levels of experience re-energize their website to make them more profitable. Her step-by-step guide to Pay-Per-Click campaigns helps to make your company visible throughout the customers' buying cycle.
In talking with growing businesses, we're finding a common issue of data reentry. If your employees enter and re-enter sales information in multiple software programs, it can slow the sales process and allows for data entry errors. But how can you streamline the work flow management?
Answer:
Procedures within the sales process may be fragmented in various ways, for example:
- Sales inquiries are received by e-mail, telephone and fax
- Inquiries are maintained on a spreadsheet
- Price quotes are calculated on another spreadsheet
- Follow-ups are maintained on yet another spreadsheet
Most accounting software can maintain and integrate several procedures within a single program. The software applications can generate lead follow-up letters, check inventory levels and automatically reorder, forecast potential product demand and allow customers to enter orders through your Web site.
Streamline your software system. Your business will save money, and your sales force will become more productive.
Find the right small business Enterprise Resource Planning ERP software system and accounting software for your business. Download the Software Selection Guide.
Now that 2010 is here, people are scrambling to figure out how they're going to keep their New Year's Resolutions. They picked out their personal resolutions - lose weight, quit smoking, start a hobby, save more, spend less... but what about New Year's resolutions for your business? How are you planning on taking what you learned in 2009 and putting it into practice for 2010 and beyond?
Coming up with goals for the New Year is great, it gives your business something to work towards, but don't let it stop there. Planning out how you're going to achieve those resolutions is just as important as the resolutions themselves. They don't always have to be grandiose tactics, sometimes it's the simple steps that keep you on track.
Let's say your resolution is to pay more attention to the financial health of your business- take what we like to call "5 at 5"
Every day at 5:00 (or whenever your day at the office is winding down) take five minutes to review your key performance indicators. Here are some possibilities:
- Day's cash receipts
- Days' cash disbursement
- Current ratio
- Accounts Receivable (A/R) aging
Work your tactics into your daily routine, and your resolutions won't be as lofty as they seem.
What are some of your business resolutions this year? Better yet, how do you plan on keeping them?
Last month, Microsoft discontinued their Office Accounting product and a lot of small businesses where left without accounting software to run their company.
A recent Business Week article by Gene Marks highlights Microsoft Office Accounting and the story of a business owner of who was one of the many that purchased the software and ultimately lost out. Marks highlights the importance of businesses knowing about the technology that's available to them before they make the investment. 
Lately we've been getting a lot of questions about software add-ons and accounting application service providers (also known as ASP's), what they are and how they can help with their business accounting.
An accounting ASP is an Internet service that provides business accounting software on line. ASP accounting services range from specific functions, to fully integrated packages.
There are three types of accounting ASP's:
- Completely Web-based packages
- Desktop packages redesigned for Internet use.
- Partial accounting applications - on line bill pay, for example.
Monthly fees typically are a flat Internet access rate plus a fee per accounting module - accounts receivable, accounts payable, payroll, etc. Charges typically run anywhere from $10 to $500 per month.
If you are considering an ASP for your business accounting, make sure you weigh these factors.
There are some distinct advantages of ASP's including:
- Allows remote access to financial information.
- Cost savings over in-house software.
- Useful for businesses with multiple locations.
With that said, there are also significant disadvantages:
- No personal interface with accountant.
- Security issues - financial information must be protected.
- Data conversions may require manual input.
Whenever you're looking at purchasing new accounting software, make sure you consider your business requirements first whether that is in-house or on line.
Know your software options- Download the Software Selection Guide
What can one blog do to change the world? Alone, not much, but pair it with thousands of blogs from all over the world and big things can happen.
Last year over 12,000 bloggers and 14 million readers came together
Blog Action Day to change the conversation about poverty. Join us on October 15 as we take part in this year's Blog Action Day focusing on climate change. Connect with millions of others who will be working together to make a difference.
One day. One Issue. Thousands of voices.
In an article on CNNMoney.com, SBA chief Karen Mills said, "it is the small businesses that are going to drive the economy and the recovery.... We're the popular kids at the dance."
While some business owners are feeling ignored by the stimulus package offered by the government, others are feeling a lot of love from the "people's stimulus package."
Buy local programs have been popular in some areas for a while but since the recession, they've been gaining momentum all over the country. From Portland, Maine to Seattle, people are really beginning to rally behind grass root efforts.
Big changes come from small steps. According to the American Independent Business Alliance (AMIBA), each dollar spent at a local business generates three times more money back into the local economy compared to a dollar spent at a chain store- that means more tax revenue and lower taxes.CNNMoney.com reported that business owners in New England are taking on the "10% Shift" to show consumers that just by spending 10% of your spending on local businesses can have a noticeable impact.
But is it actually working? Yeah. According to a survey of 1,100 retailers by Institute for Local Self-Reliance, businesses that participated in a grass roots campaign only saw a 3.2% average drop of sales, compared to 5.6% by companies who didn't participate.
Bigger corporations are starting to notice. Even Wal-Mart has started to hang "Local" banners over produce aisles to entice shoppers. Before we get wrapped up in all of the numbers, let's not forget that local campaigns are also good for the environment. Local businesses take up less land, carry more locally made products and are closer to residents, reducing traffic and pollutants.
Visit AMIBA.net to see what communities around you are adopting buy local campaigns, and how to get started with one of your own.
Last week we talked about the importance knowing your way around the world of finance and resources that can help you with that, but just as important as knowing the latest information about the economy is knowing how it all got started in the first place.
Jonathan Jarvis, graduate student at Art Center College of Design in Pasadena California, put together the awesome video as part of his thesis.
Watch, learn, and enjoy.
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.
Business owners really know how to provide quality products and services. But when it comes to simple accounting basics that can make an impact on the success of their business, some business owners are left in the dust.
Being a business owner isn't for everyone, in fact, most businesses don't make it through their first year. People who don't care to learn all aspects of owning a business especially accounting- probably didn't care about running a successful company in the first place. If you agree with any of the following, you'll probably find yourself in the same category as them.
1. You don't care if your business is profitable.
You should only bother knowing the simple accounting if you care about the health of your company. Accounting provides structure to help business owners keep track of whether or not their business has made any money over time and where that money is coming from. Knowing the nuts and bolts will tell you how profitable your business is by keeping track of how much money is going out and coming in.
2. You don't care about what others think.
As the business owner, you're not the only one who cares if your company is making any money. Banks and investors are very interested in knowing how well your business is doing financially. Banks will look at your business from a fiscal standpoint to determine whether or not they should loan your company money. More importantly, they want to be sure that if they give you a loan, you will be able to pay it back. Investors will also want to know if your company is a solid investment and a financial statement will tell them not only if, but how much they should invest into your company. The better you understand the ins and outs of your company's financial state, the more likely the bankers and investors will give your business the money that it needs.
3. You aren't concerned about employee theft; "they're like family."
This isn't to say that you can never trust your employees - there is no doubt that many employees are hard working and honest - but keeping tabs on your financial accounts can help you keep track of where your money is going. According to Score.org expense reports, payroll, purchasing, and suspense accounts are just a few of the places that disloyal employees are most likely to skim a little off the top. For a complete list of areas where employee fraud is most prevalent and what you can do as an employer to prevent employee theft, read the rest of the article.
4. You like selling products that lose money - you'll "make it up on volume"
Thinking about reducing prices to sell more products? Think again. While it may seem like it might make sense to slash prices to move more product, you are more than likely loosing out. Reducing prices reduces your gross profit margin and create more effort for your company to break even. Then again, if you knew accounting 101, you probably already knew that.
5. Cash flow isn't important to you
Your Cash Flow Statement gives you a snapshot of your company's short-term financial health. Knowing your company's cashflow is crucial, it will help you to determine if you have enough money on hand to pay employees and creditors on time. Companies who pay attention to their cashflow analysis know that if they have abundant cash on hand are able to invest the cash back into the business in order to produce more profit.
6. You don't really need to know if your customers have paid you yet
You don't care your customers don't pay their bills right? Of course you do! If you don't keep track of who has and hasn't paid you, how are you supposed to collect?
7. The IRS doesn't care if you've made your payroll tax deposits
Payroll taxes are the responsibility of every employer. Business' payroll tax responsibility consists of not only the taxes required to be withheld from employees' wages -Social Security tax, Medicare tax and federal income tax- but also that the employer's match their share of Social Security and Medicare taxes. Businesses that don't make payroll deposits can face some major penalties, including jail time.
8. Your suppliers never call you to collect their money
Just like you want to make sure that your customers pay you, the same holds true for your vendors. Keeping track of your invoices will help you stay up-to-date with liabilities and due dates for bills.
9. Your employees donate their time and don't expect to get paid
While satisfaction of a job well done is crucial for your employees to be happy and remain with your company, so is a paycheck. Not very many people can afford to volunteer 40 hours of their week. Knowing the basics, like cash flow, lets you make sure that you have enough money to pay your employees for all of their work.
10. Accounting is too difficult to learn anyway.
You don't need to be a mathlete to have a working knowledge of accounting. Chances are that if you're smart enough to learn how to run a company, you're smart enough to learn the fundamentals of accounting. Monica has put together an easy to understand course, Basic Accounting Structure that helps to explain the makeup of accounting, including the different kinds of accounts and basic financial statements that your business uses everyday.
Hopefully you don't find yourself agreeing with any of the reasons above, but if for some strange reason you might, then don't bother to learn anything about accounting; hire a mathlete to take care of all of your finances. But then again if you don't care about your money, you probably don't have enough to hire someone who does.
Photo credit: Carol Ester
