Category Finance

The eight traits of entrepreneurship

This recent article from Cobweb Information Ltd caught my eye so I thought I would reproduce it for everyone. The one that interested me most was Cameron Johnson, I wonder if there are any accountants out there advising nine year olds on how to run their business? A US journalist-turned-author reckons there are just eight traits essential…

The Value of Keeping Your Accounting up to date

If you're like me you use your credit card online to purchase domain names, update software, purchase new software or online services, buy the odd book here and there, and so on. The convenience of buying online just makes things happen faster – and we're in a time where everyone wants things now. I received…

Want to do good?

Late last week, Shel Israel, co-author with Robert Scoble of Naked Conversations contacted me about a forthcoming European tour he and venture capitalist Rick Segal are planning for August. I explained that most of mainland Europe and lumps of the UK will be away on holiday so it might be tough to fill the time.…

PreEntrepreneur – IntraPreneur – Entrepreneur

This is where it get interesting, planning needs to be done in may areas including: product / service planning, financial planning, IT / software / online planning, sales / marketing planning, human resources planning,office planning, etc.These are all barriers to starting a business, in terms of money, time and most of all the necessary expertise.... From personal experience I can tell you, that every mistake you do not make, because of sensible advice, is worth every penny you spend.As an example look at financial planning, find an accountant who is willing to play my favorite business game with you for an hour, Cash-Flow Reality Gaming, using our free AccountsOffice, with cash-flow plugin.

Accountant type – bookkeeper accountant or business advisor accountant?

The interesting thing about that is, most other accountants who say ‘oh no my client is used to Sage etc.’, well how do you explain that we are moving clients off a static version of Sage on their PC and onto winweb with all the benefits of our real-time support without any complaints, after all they are guided by their accountants advice not the other way round– so lets be honest the barrier is not the clients, it is the accountants who feel safe with Sage etc., clients don’t care!... I think to use Sage or other boxed products is no problem at all.If on the other hand you have a business start-up, a growing business and you want to see your numbers in real time, then the bookkeeping accountant can only offer this service with an on-demand, online Software as a Service product.Here both partners can work together in real time and a lot of IT headaches are taken from them, the benefits a manyfold.

Cash-flow Reality Gaming

It would be a futile undertaking to get clients to analyze their business by means of a monthly "Profit & Loss" statement, for two reasons:It would be too involved for the average small business owner to do, certainly in the beginning;it would only analyze the past there would be no planning involved.I think a good way forward would be cash-flow forecasting, you are able to estimate your expenditure and income on a per month (or even per week) basis. But it does a couple of other things too: It sharpens the mind in terms of fixed cost (overheads), once you put the same amount in every month, you begin to ask yourself, do I need this or can I get it another way (outsourcing, Virtual Assistants, down-sizing, etc.);It will show you very quickly what happens if you move a payment or a receipt from one month to the next, which helps you in your negotiations of payment terms with your suppliers and clients, and shows up the bad apples in your client basket;Plan your business expansion, find out if you can afford it or not and how much more business at which payment terms you need to cover the cost for the expansion;Compare the plan with the actual expenditure and income figures and learn from your mistakes, adjust the plan and become more realistic about your business performance.

Not all accountants are created equal (how do you choose an accountant)

This is where I would definitely look for an accountant who belongs to a professional body, and holds a current and up to date practicing certificate, at least this way I would know this ‘stranger’ has gone through a certain standard of training and will have had to achieve a minimum level of experience before being admitted to membership.... In summary, if you know someone who uses an accountant they are happy with meet them first, next find an accountant who understands your industry and finally if you have to make a selection on your own, then meet and interview at least three accountants before making your choice, remembering their membership of a professional body affords you some protection.

Sunday Times on small business and cash-flow.

Stuart over at Business Matters mentioned a "must read" article for all business start-ups in the Sunday Times Small Business section last week, written by Rachel Bridge. She has a new great offering this week with "The secret to securing a start-up loan".Two things caught my attention, in section two she talks briefly about having a cash-flow forecast in preparation for the bank interview.

Let’s talk business, ….SMALL BUSINESS.

We hope you will enjoy our rambling & ranting on the subject of small business.On this blog we will concentrate on providing an inside to our thinking with respect to self-employment, home businesses and small businesses, the so called micro and small businesses.Some of the areas will include: Accountants/CPAs, we believe accountants/CPAs should be more then glorified bookkeepers.... Do you really need a VC before you can earn yourself a good living.Government, why most government help for small business may be a sincere offer, but in reality is nothing but hot air.Marketing/PR, the high tech way to create awareness for your products and services for the small budged.Web-Technology combined with Live!

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