The Benefits of Having Management Accounts Prepared for a Small Business

Small business owners should prepare management accounts alongside financial accounts. Management accounts are important for tracking, recording and reporting financial information for management purposes. There are no set standards for preparing managerial accounts and any business can design their own style according to their operation and business needs. There are several benefits associated with these accounts. Not only can small business owners enjoy the benefits of creating a competitive advantage but can also leverage the way they do business in their markets.Reduce ExpensesManagement accounts can help a small business to lower its operating costs. The information from these accounts will help the business owner to review the economic resources and other business operations. It helps them to understand the cost of doing business in their current situation. They will know the costs of producing goods and services and find out if cheaper raw materials will affect the quality of the final products and how consumers will respond. This will help them to source for cheaper factors of production and reduce the cost of doing business.Improve Cash FlowManagement accounts involve a review of the budget in comparison with the actual expenditure. This is a good way for small businesses to understand their roadmap to the future. Management accounts will go through the company's financial history and come up with a master budget for the entire business. The owners will then know when to spend money and which items are either necessary or unnecessary.Business DecisionManagement accounts also help the small business owner to make appropriate decisions based on financial facts. Without these accounts, many managers make decisions based on qualitative analysis - this can be dangerous in the long run. Management accounts provide quantitative analysis for several decision making opportunities. Small business managers will be able to have a clear understanding of the implications they expect when they make their business decisions.


Increase Financial ReturnsSmall businesses can increase their financial returns using managerial accounts. This is because the accountant can prepare a financial forecast showing consumer trends, potential sales and the effects of pricing strategies in the economic marketplace. The small business owner will be in a better position to know the amount of products to produce in the current market prices in an anticipation to beat the competition in any future price changes.Determining Production QuantitiesA company's intention is to produce more than one product or service using the same resources. For example, a baker will produce cookies and bread using the same resources. A good accounting firm will make use of the workers to perform both auditing and preparation of management accounts. This will help business owners to understand which products to produce most and which ones to reduce. This is a complex process that involves market demand analysis, capacity verifications, and costs of production and financial ratios that can be achieved through management accounts.How Far To Process ProductsSmall business owners are often unable to clearly tell whether to process a product further or sell it in whatever form. Some think it would be more profitable to add value to the product while others prefer to sell it raw. Management accounts will help a small business owner to understand how far a product or service should be processed to maximize profits. The accounts show what happens when factors of production are increased even by one unit.

6 Key Advantages of Cloud Accounting

Every day we turn on the TV or read an article and hear about the benefits of working in the cloud. How the IT industry is using it to make a bigger mark in the world. How the medical industry is using it to become more innovative. But what about YOUR industry?Yes there are tons of other industries that can benefit from working in the cloud. And there are a plethora of advantages why someone in those industries should use the cloud more. Even for accounting. Yep accounting.Accounting is one of those conservative industries. Not too much risk-taking going on. Well, if you haven't figured it out by now, I am not your traditional accountant. I like to call myself and The Tech Savvy Accountant™. I like numbers but I also like technology but I could never find the time to play with the latest and greatest gadgets. That is until I discovered cloud accounting.Cloud accounting is the process of managing your business finances over the internet. You can say "in the cloud" or you can also call it "virtual accounting". It essentially means the same. And today I am going to share 6 key advantages of using cloud accounting.1. Saves you timeCloud accounting saves you a ton of time with your day to day processing. By connecting your accounting system to your bank account, your transactions are automatically downloaded for you. This saves you hours from inputting each... and every... transaction. (say it slow)2. Reduces your costs (code for saves you money)There is no initial or upfront fees, no installation costs and now expensive software to purchase. Simply sign up and subscribe to the low monthly fee. And in most cases you get to try before you buy. If you don't like it, simply cancel the program. You don't have to worry about trying to package it back in the box like you never opened it. (Don't act like you haven't tried that before).


3. Accessible anywhere and anytimeAre you always on the go traveling for work or for play? Well now you can check in and see how business is going while your away without picking up the phone. Simply connect to the internet and login. Easy as pie!4. Real time financial data Take that access anywhere feature a bit further. With cloud accounting, you have access to real-time data. You can know what money is being spent at any given moment. Need up to date financials for a meeting? Just a few clicks and you will have those reports right at your fingertips.5. Go GreenYou are doing something good for the planet. Once you start using cloud accounting, you also start to using other cloud services, such as cloud storage. The end result equal less tress killed for you to print out all those reams of reports every month.6. Up to date technology & systems (code for no maintenance)Technology changes every minute. Have you heard the saying that as soon as you take a car off the lot it depreciates? Well I think the same thing is true for technology and software. As soon as you leave the store there is an update. When using cloud accounting, you have access to these updates 24/7 and they occur without you doing anything. And they are at no additional cost to you. Those IT worker bees are constantly at work to make your life a better place. (smile)What advantages have you benefited from since using cloud accounting?

Ten Things to Consider Before Taking the Plunge From Employee to Entrepreneur

If becoming an entrepreneur crossed your mind, you may have wondered; what does it really take? So you are currently in a job or may not have one. Yet the thought of starting a business to support your family or just to make extra money seems like a good idea. One small problem: you have never been an entrepreneur. The word entrepreneur or business owner might illicit fear, if not dread. Maybe this stems from being trained to work for money as an employee in someone else's company. However, this should not stop you from providing a useful service or product. The best way to overcome your fear is through knowledge. The more you know about taking the plunge into your business venture, the better chance you will have of succeeding. Below is a list of a few things that an employee needs to consider before diving in head first into their own business:1. Why are you starting this business?
What is your "why" for starting your own business? If you are in it just for the money, you will find that you will get very despondent quickly. It takes a lot to start and run a business. There are many challenges to face in starting this new venture that may quickly test your will. In the beginning you may wear many hats such as CEO, general manager, accountant, computer technician, sales person, secretary, etc. The different skills needed for each of these may not come easy for you. The good news is you can get help from people you know or hire someone to cover these. The aim here is to have a strong enough why to keep you going when you feel challenged. Write your "why" and read it daily. This will ensure you have enough steam to keep going when the going gets tough.2. What is your product or service and how good is it?
Your service may be cutting lawns or selling pizza (a family recipe). The thing that will stand out is how good you are at what you do. Using the example of a landscaping company: Are you friendly, reliable and competent compared to other landscapers servicing that area? Think about adding a discount on a six month contract for cutting their lawn as an extra. Using the example of selling pizza: How does your pizza taste compared to similar pizza sold in the area? If your product or service is similar add value to your service, maybe offer free delivery during the week.3. Who are you offering your product and services to?
This may seem like an odd question, people would be your answer. However, what do these people have in common and what do they want? The sooner you can answer these questions the better you will be able to serve them. FedEx, for example, offers fast, reliable overnight shipping. When FedEx first opened, USPS was already delivering packages. However FedEx figured out that businesses needed faster delivery to keep their businesses going. FedEx met the needs of other business owners.4. How will you show what you have to offer?
If this sounds like marketing, then it is. Don't be scared of the word marketing. Marketing can be considered as a way to show your costumers what you have to offer. Then consider what method you will use to communicate that message to them. The internet has created a whole slew of ways to market for free: Facebook, twitter, LinkedIn and others are examples you can use as leverage for free. Or you may want to go the traditional route of word of mouth, ads in the newspapers or flyers. Another option could be hiring someone to do it all for you. Starting a business also means letting others know how to find what you have to offer.5. Where will you exchange your goods and or services?
Depending on whether you offer a service or a product you may have operating costs or very little. If you sell a product only online there may be no need for an actual physical location in addition to your garage. However, take for example, an education consultant. He or she may visit his or her clients in person or have an office. Either one will generate a cost associated to conduct business; one may be less than the other. Travelling may cost the consultant time and money in transportation, this possibly limiting how many clients he or she can see in a day. When compared to having an office, the rental cost may be unaffordable in the beginning. It all boils down to how your costumers will get your product or service.


6. Do you have all the supplies you need and how will you acquire the supplies?
In addition to location, do you have the tools to do the job? Example: Let's say your new business involves selling hand-made jewelry. You decided you can do this from home. Your list consists of strings, beads, storage containers for you supplies and finished products, etc. After listing these items, you may find a local hobby store that is both conveniently located and reasonably priced.7. How will you get paid?
Consider your method of payment from your clients. Setting up a merchant account and getting equipment are important in your store front or you can take only cash and checks. If you are an online only business you may set up a merchant account like PayPal. The more payment options you have available the better it will be for your costumers.8. How will you set up your small business?
Registering your business is a very important part. You can choose to operate as a sole-proprietor, limited liability corporation, limited partnership, etc. The important thing is to remember to file the necessary paperwork with the federal, state and county where applicable. As a business owner you are now responsible for paying your taxes. You are now the employer of yourself and anyone else hired. In addition you wouldn't want to miss out on the tax benefits of owning your own business. The best way to set up your business is to seek professional advice from your lawyer and accountant. Or you can get assistance from legalzoom.com, Score, or the US Small Business Administration.9. What will your total start up cost be?
Having answered the questions previous questions, you are now better able to answer this one. Your businesses start up costs maybe small or large. Example: a freelance writer may have a much smaller start up cost than starting a pizza restaurant. Knowing what your numbers are allows you to be better equipped to start. If leaving your job to start your own company is your choice, knowing this number will tell you where you need to be. The aim is to be best prepared for the success of your new venture.10. Where will you get your funding?
Will your 401k, savings account, or trust fund provide the funding to start your company? Or will you need a loan? Answering question number nine truthfully will help you answer this one. It maybe you want to start with your savings or borrow the money from a friend or relative. They may be able to give you a much lower interest rate than the bank. Or you can opt for a business credit card. Or grow your business as you make more profit. There are many options available if you do need it.Starting your own business boils down to your mindset. Entrepreneurs know that in order to be successful, they have to think success. Their success is directly proportional to how creative, resourceful, and imaginative they can be. In the beginning, you are jack of all trades. However, none of this should stop you. Remember, the more you know, the better equipped you are to succeed. And if you aren't sure of something, always seek professional advice. Prepare to succeed and keeping providing the best product and services you can.

Tips on How to Reduce Freight Cost

In general, freight is the cost for transporting merchandise from point A to point B. Freight includes the move's entire cost, from documentation, packaging, insurance costs, carriage costs, and pallet or container costs. The more your business establishment depends on the moving of goods, the more your business will benefit from lowering the overall freight cost. Being aware of the need to reduce freight costs is one important thing. The challenging part is finding a way to actually reduce freight cost.Below are some helpful tips on how to reduce freight cost.Shop Around
The very first and obvious step to reduce freight cost is to look around for the best rates. There are a lot of different carriers (local, national, or international) available today. You may be tempted to use the same delivery method or carrier company to avoid hassles, but this could cost you more. You'll have to prioritize the most important prior to shopping for and comparing freight rates. Different carrier companies have different strengths and could be able to give lower rates.Use Express Delivery Only When Needed
If a certain cargo is absolutely needed immediately, use express delivery and ship others which are not really time sensitive. Different carrier companies also have various pricing range, so express delivery might cost more with one carrier compared to another. Also, you can save by a significant amount of money by making sure that all carriers that you use could accept shipments with dimension surcharges or additional oversize without additional charges.


Loyalty and Reward Programs
Use rewards cards as often as possible. Some freight forwarding firms offer loyalty programs that enable their clients to save. You could also earn cash or miles. Some freight forwarders offer more rewards when shipments are processed electronically. Also, ask for volume or group special discounts through memberships with professional associations and leading freight forwarding companies.Billing Accuracy and Freight Forwarding Brokers
To shop for freight forwarding broker systems, you can browse the internet. This way, you can find the best shipping deals online. Online freight brokers can also help in finding freight supplies sold at a lower cost. This is especially helpful when you are moving goods in bulk.Billing Accuracy
Another way to reduce freight cost is simply by watching for errors in your billing. Keep in mind that everyone commits mistakes, and such errors could cost you if they're not noticed and corrected. Regularly audit your invoices for accuracy.

Business Card Printing and Design With a Professional Touch

With businesses trending largely toward digital marketing and advertising, the single stand-alone seems to be the business card.A quality business card, not only conveys your contact information, but the overall image of the business. Don't expect the card to tell the consumer everything that your company does. It is important that you don't over-design the card with too much information or distraction. Remember space is limited. Keep it simple. Use your logo as the basis, this should be the largest element on the card.Most people tend to scan over marketing materials such as cards, brochures, flyers, or other forms of advertisement vs. actually reading them. Meaning, they don't actually read every word, but quickly scan looking for desired information. This is why it's best to provide only concise, pertinent information. If you have several social media accounts, provide the one that you are most active on. Make sure that the information that you are conveying has contrast to the background so that it is readable. The same applies to the font-style, make sure it is readable. Cosmetic appeal and accuracy of information is what you are shooting for. Is the information clear and concise? Is the information accurate and up to date? If you can answer yes to those two questions, you're doing alright.Your business card is a reflection of your business. It's best not to skimp on design, style, or paper to save a few dollars, if it isn't an absolute necessity. Most business cards are printed on a 12pt. card stock, to 16pt. card stock which are pretty durable. Some companies will offer cards on a 80lb to 100lb cover stock. The cover stock is not as thick and sturdy as a card stock. For a more professional image, stick with a premium card stock. There are also coating options which give you an option for a high gloss appearance. Although this looks really nice, it isn't recommended for a surface that needs to be writable. An example of needing a writable surface would be on a doctor's business card. Having a "next appointment" on the back of the card that needs to be filled in for the patient would be an example of where gloss will have a negative effect. Some companies will offer more intricate designing options, such as Spot UV Business Cards. The spot UV cards are relatively inexpensive, but extremely eye-catching and elegant because only selected areas have a high gloss, while everything else has a matte finish. As you can see there are many things to consider when creating a business card, and the level of professionalism that your company portrays. Keeping it simple on a thicker stock will provide you with a nice, professional business card.

Importance Of Commercial Cleaning Services For Offices

It's a hyper-competitive times in today's world. Meeting deadlines, conducting meetings, workload, stress and so on. Having a clean office space is all the more crucial for your business' success. Offices are witness to hectic activities - paperwork, foot traffic, unintentional spillages and so on. No wonder, cleaning and maintaining offices or any commercial establishments is no child's play.An unclean workplace can result in reduced productivity, employee disengagement and loss of customers. After all, customers or clients or even visitors would not look forward to engage with a business which can't keep its premises clean.Your office premises and environment is the first thing that is noticed by your potential customers, clients and potential employees. Cleanliness of your workspace creates a first impression on your potential client. It can make or break a contract and attract or turn off potential clients. All this makes it all the more necessary to get commercial cleaning services done for your office. Let's have a look at look some of the benefits of a clean office space:Attract clientsWould you like to deal with a company that has a shabby, unorganized workplace?Can you imagine working with a company that has cluttered desks loaded piles of unattended files, dingy washrooms, and dirty floors?Well, if you can't fancy yourself working in such an environment, you can't expect your customers to put their best foot forward in such an unkempt atmosphere. An organized, clean office space is welcoming and inviting. When the clients see how you keep your premises spic and span, it builds trust in your potential clients and encourages them to initiate further professional association with you.Promote your brandHaving a clean, shiny office space adds to your brand value and promotes recognition of your business' name and services.


Enhance productivity of your staffIt goes without saying that a neat, orderly workplace enhances productivity of employees to a great extent. It not only brightens up the mood of those working there but also encourages everyone to perform better with a calm, relaxed mind in a clean setting. After all, no one wants to work in a cramped, unhygienic, grimy workplaces which unnecessarily build up frustration and annoyance and hamper efficiency and performance of employees. Moreover for potential candidates coming to your company for an interview, an unclean space would clearly be a big turn-off.Hire professionals for immaculate cleaning servicesOffices or any commercial establishments require dusting, sweeping, mopping, disposal of waste, sanitation services on a daily basis. Though such cleaning activities are indispensable, they are time consuming. Hiring a professional and reliable commercial cleaning services provider in your locality to undertake cleaning activities is the best thing for business.Commercial cleaning services not only mean mopping and sweeping but also include cleaning and scrubbing of restrooms, locker rooms, kitchen, spot clean walls and wallpaper, scrubbing and re-coating of floors, carpet cleaning and maintenance services, upholstery cleaning, cleaning of windows, tiles and grout cleaning services and other such professional cleaning services.Professional cleaning services not only keep the office premises clean and hygienic; they help create a work-friendly atmosphere and ambiance and raise productivity levels. A clean and sparkling office draws clients, builds your corporate identity, establishes your reputation and brings you more business.

Eligibility Checking Part 2: Taking a Proactive Approach

In Part 1 of our post on patient eligibility verification, we examined some of the ways to check eligibility. This post details how practices can take a proactive approach to reduce denials due to eligibility issues.More than 20 percent of claim denials from private insurers are the result of eligibility issues, according to the American Medical Association. To reduce these types of denials, practices can employ two proactive approaches:1. The Basics - Many eligibility issues that result in claim denials are the result of simple administrative mistakes. Practices must have comprehensive processes in place to capture the necessary patient information, store it, and organize it for easy retrieval. This includes:o Obtaining the patient's full name directly from the card (photocopying/scanning is recommended)
o Patient address and phone number
o Obtain the name and identification numbers of other insurance (e.g., Medicare or other type of insurance plan involved). Again, photocopying/scanning of all health insurance cards is recommended.
o Patient's date of birth2. Looking Deeper - The increase in high deductible plans is making patients financially responsible for a larger percentage of a practice's revenue. Therefore, practices need to know their financial risks in advance and counsel patients on their financial obligations to improve collections. To accomplish this, practices need to look beyond whether or not the patient is eligible, and determine the extent of the patient's benefits. Practices will need to gather additional information from payers during the eligibility verification process, such as:


o The patient's deductible amount and remaining deductible balance
o Non-covered services, as defined under the patient's policy
o Maximum cap on certain treatments
o Coordination of benefitsPractices that take a proactive approach to eligibility verification can reduce claim denials, improve collections, and reduce financial risks. Practices that do not have the resources to accomplish these tasks in house may want to consider outsourcing specific tasks to an experienced firm.Specifically, there are certain patient eligibility checking scenarios where automation cannot provide the answers that are needed. Despite advancements in automation, there is still a need for live representative calls to payer organizations.For example, many practices use electronic data interchange (EDI) and clearinghouses with their EHR and PM solutions to determine if a patient is eligible for services on a specific day. However, these solutions are typically unable to provide practices with information about:• Procedure-level benefit analysis
• Prior authorizations
• Covered and non-covered conditions for certain procedures
• Detailed patient benefits, such as maximum caps on certain treatments and coordination of benefit informationImplementing these proactive eligibility approaches is important, whether practices handle them in house or outsource them, since denials resulting from eligibility issues directly impact cash flow and a practice's financial health.