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:

1. Quoting the Client
2. Generating Purchase orders to venders,
3. Receiving the job from vendors, and paying that bill, set up the sales tax, adding freight cost,
4. Generating an invoice to the Client.

 
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:

• What (Specifically) do you do? 
• How do you do it?
• What is a “Typical Situation” people are in when they realize they need your help?
• What is something someone might say that would lead me to think of you?
• What is your Dream referral?
• How has your business changed recently?
• What advise do you have for people right now based on your industry?
• What will you do differently on the other side of this?
• How can I introduce you? 

Others have been posted on Social Media (Linked In, Facebook and Twitter) and all others can be found on our You Tube Channel: 

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.

Come early
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.

Stay late
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.

• Do you need their product or service?
• Do you know someone who needs their product or service?
• What other types of business also work with the same type of prospects as this person?

If you can help them with referrals of introductions, please help them. If you cannot, not problem.
​
Don’t Sell
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:

• “I need to reduce Worker Compensation Claims.”
• “I hate dealing with worker turnover.”
• “General: working Worker Safety/Prevention; Worker Safety Training “

 
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.

• Social Security numbers of everyone listed on the tax return. Many taxpayers have these number memorized. Still, it’s a good idea to have them on hand to double check that the number on the tax return is correct. An SSN with one number wrong or two numbers switched will cause processing delays.
• Bank account and routing numbers. People will need these for direct deposit refunds. Direct deposit is the fastest way for taxpayers to get their money and avoids a check getting lost, stolen or returned to IRS as undeliverable.
• Forms W-2 from employers.
• Forms 1099 from banks and other payers.
• Any documents that show income, including income from virtual currency transactions. Taxpayers should keep records showing receipts, sales, exchanges or deposits of virtual currency and the fair market value of the virtual currency.
• Forms 1095-A, Health Insurance Marketplace Statement. Taxpayers will need this form to reconcile advance payments or claim the premium tax credit.
• The taxpayer’s adjusted gross income from their last year’s tax return. People using a software product for the first time will need their 2018 AGI to sign their tax return.  Those using the same tax software they used last year won’t need to enter their prior year information to electronically sign their 2019 tax return.

Forms usually start arriving by mail or are available online from employers and financial institutions in January. Taxpayers should review them carefully. If any information shown on the forms is inaccurate, the taxpayer should contact the payer ASAP for a correction.

​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:

• “I have some customers/ clients not paying their bills.”
• “I've got good customers but they're paying my invoices slow/beyond terms”
•  “I'm not getting returned calls about client outstanding bills”

 
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:

• Good records will help business owners:
  • Monitor the progress of their business
  • Prepare financial statements
  • Identify income sources
  • Keep track of expenses
  • Prepare tax returns and support items reported on tax returns
• Small business owners may choose any recordkeeping system that fits their business. They should choose one that clearly shows income and expenses. Except in a few cases, the law does not require special kinds of records.
• How long an owner should keep a document depends on several factors. These factors include the action, expense and event recorded in the document. The IRS generally suggests taxpayers keep records for three years.
• A good recordkeeping system includes a summary of all business transactions. Businesses usually record these transactions in books called journals and ledgers, which business owners can buy at an office supply store, or keep them electronically. All requirements that apply to hard copy books and records also apply to electronic business records.
• The responsibility to validate information on tax returns is known as the burden of proof. Small business owners must be able to prove expenses to deduct them.
• Business owners should keep all records of employment taxes for at least four years.
• Businesses that keep paper records should keep them in a secure location, preferably under lock and key, such as a desk drawer or a safe. 
• Businesses that keep records electronically on a computer should always have an electronic back-up, in case the hard drive crashes.