My dad came across the Financial Statements of his dad's business from April 1946. I scanned a page of it to the right. The way QuickBooks currently prints a Profit and Loss Statement, you have the Revenue at the top and then Costs of Goods, then Expenses and finally the Profit at the bottom, but this statement has all the Expenses, then the Revenue THEN the Profit.
The numbers are interesting. As you could guess, it is a bar, a few blocks away from Wrigley Field. In 1946 the average family income was about $2,600 per year or $216.66 per month. The profit for this month was $155.78. Previous month's profits averaged $670.
Why was this month so low? As I looked at the details of the financials, I saw that he bought additional beer this month. Maybe there was a deal, or added a new brand.
Having monthly financial statements are important for a business. They answer questions you might have. Can you take advantage of a suppliers' deal? Will purchasing equipment be a better advantage this month or next?
What is your business worth? I did a quick Valuation of my Grandfather's business, based on the financials we found. At the beginning of 1946, it would be worth about $28,140. In June 1946, it would be worth over $40,000. What do you think a major factor was in the increase in the business value in those first 6 months of 1946? (Hint: When was the last time the Cubs were in the World Series?)
You save money on expense by streamlining your processes. As we begin the Eighth month of 2020, let’s take a look at your business process.
Let’s look at an example:
Quote: A quotation is generated in Microsoft Word and sent to the customer for the work to be done. Quote includes estimate on materials, shipping and scheduling.
Purchase Order: Once the customer agrees and signed the quote, a Purchase order is generated in Microsoft Works to the vender. This starts the Job Expense Sheet in Microsoft Excel. It includes specifics on materials, shipping and scheduling.
Vender Bill: Now the job is done, and the vendor bills you. Your company then has to run it through a Tax Worksheet (in Excel) to calculate sales tax, and Services. After doing the Tax Worksheet, they enter the amounts on the Job Expense Sheet.
Freight Costs: Make sure the freight costs are entered onto the Job Expense Sheet.
Invoice to Client: The invoice is prepared in QuickBooks from the Job Cost worksheet and Emailed to the client.
This maybe the process you have been using for years. Maybe it started simple enough, but then new steps needed to be added along the way. Let’s say this process takes about an hour per sale.
Streamline the process to use one program instead of 4. Sure, the initial set up may take some time, but the change in the long run saves you both time and money. If you notice, the sample company does use QuickBooks to do their invoicing. We can also assume they track their expenses in QuickBooks in order to be able to come up with financial statements.
After some training by a certified QuickBooks advisor, the company could use QuickBooks for:
The company would enter the info into QuickBooks and the bookkeeper would check it and follow up on invoices. After a 3 hour (or so) QuickBooks Training and Set up, the whole process may only take about 15 minutes per sale, as opposed to the hour it previously took. Thus saving both time and money!
Improve your process and improve your business!
After spending most of my time during the "Shelter In Place" on Zoom (and Free Conference Call, WebEx, Global Meet and my trusty iPhone), I finally figured out what to do to make the podcast more of a regular feature and promote power partners GLM's clients should know and possibly utilize.
The idea is to talk with a business associate I know very well. Maybe they have worked with a client, or I have learned of their outstanding reputation from others I trust. During the 10 Minutes interview I make sure to ask most of these questions:
Networking events are all about, well, networking, yet some people seem to attend event after event without ever making a meaningful contact. Here are some useful tips you can use to network better.
Even coming in a 15 minutes to half-hour early means you have time to acclimate yourself to the room, the hosts and your surroundings. By the time the next early bird gets there, you already have something in common. Also, chances are good they’ll be grateful to have someone to talk to and your initial nervousness will already have burnt off.
After a great conference, you might literally want to chew over the day’s speeches with a light bite or cocktail. Chances are good that people will be more relaxed or relieved at the end of an event. You also won’t have to struggle to make conversation, simply talk about the day and compare it to the experiences of the person you just met.
Tell someone about Exhibit booths you liked and to try specific food there
Exhibitors work hard to plan and prepare for the expo. Reward them by telling others about the booth.
Each aisle has a food vendor providing a free sample. If there’s something particularly delicious or beautiful, help yourself to a serving. Then start up a conversation with someone heading to the food vendor. Say something light or goofy that requires no pressure to respond and makes the person next to you smile and take a bite and then share their own experiences.
Most importantly: Listen
Exhibitors have not only spent a lot of time and preparing, they also spent money to exhibit, make give-a-ways and marketing materials. They have earned the right to tell you about their business. It is important to listen to them and see how you can help them.
As I mentioned, the exhibitors have earned the right to tell you about their business. Please do not approach them to only sell your product of service. Yes, if they ask what you do, you can talk with them about your business, but don’t sell. Explain. They maybe asking so they can tailor their message to you more specifically. Please be respectful of the Expo.
Come and Network this Thursday March 5th from 2-6 PM. Learn more here: https://www.thegoa.com/expo2020.html
Typical Situation: Our client has to improve worker morale and avoid loss of productivity. Our client is also looking for ways for their employees reduce time away from work and reduce Training Expenses.
Maybe there has been an employee Injury or death, news of worker (s) being injured on the job or equipment failure.
When you hear a business owner say:
They Provide FREE Safety Awareness to businesses with 2-250 employees within the U.S.
Four and six hour, FREE courses on numerous safety topics.
How they Work: Harper provides free safety awareness courses from the Susan Harwood Training Grant. We provide high quality courses that instructed by OSHA Outreach Trainers. The courses are relevant as the training topics have been selected by needs of community that were surveyed. Courses offered until late Summer 2020.
You can introduce them:
“Harper College has FREE safety awareness courses taught by Safety Professionals and OSHA Outreach trainers. These courses can reduce your business operating expenses, increase employee morale and turnover. The website is: www.harpercollege.edu/safety.”
Matching Ideas with Resources:
Gathering records before preparing tax return makes filing go smoother
As taxpayers are getting ready to file their taxes, one of the first things they’ll do is gather their records. To avoid refund delays, taxpayers should gather all year-end income documents before filing a 2019 tax return.
It’s important for folks to have all the needed documents on hand before starting to prepare their return. Doing so helps them file a complete and accurate tax return. Here are some things taxpayers need to have before they begin doing their taxes.
Typical Situation: Our client has customers who owe outstanding bills for many months. Before classifying it as Bad Debt, send it out to Collections.
When you hear a business owner say:
An Accounts Receivable Consultant provide strategic financing solutions for business to business companies. Complete end-to-end solutions provide you with the results you need across the entire credit-to-cash continuum, all while enhancing your valued customer relationships.
How they Work The Consultant delivers results by utilizing a proprietary predictive analytics platform that drives recovery operations. More than just a debt collection agency, they offer strategic end-to-end accounts receivable management and debt collection solutions that make your cash flow.
You can introduce them:
“It sounds like you should really talk to someone about your outstanding invoice and get your money. I know someone that can provide some results for your accounts receivable so you can make it.”
Matching Ideas with Resources:
Recordkeeping is an important part of running a small business. In fact, keeping good records helps business owners make sure their business stays successful.
Here are some things small business owners should remember about recordkeeping:
In true blog fashion, the last parts are at the top of the page. Scroll all the way down and work your way back up to read them in order.
Tom is the Business Development Manager for GLM. If you are interested in learning more about GLM's services, contact him: