RSSOne Ice Cream Cone, Minus the Ice Cream Please
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Summer seems to be arriving here in Salt Lake City. We are expecting temperatures in the low 80’s this weekend and it’s about time! I have camping trips, backyard barbeques, and ice cream on the mind. I’ll bet you do too.
I talk to small business owners every day. I admire their talents and adventurous spirits and it is a joy to work closely with them. Most of these entrepreneurs are phenomenal at what they do and produce valuable, high-quality products and services. The fact that the entrepreneur’s business is running suggests that he or she is also at least a half-decent marketer. But most will not hesitate to admit that they are not great accountants. While by admission they are not trained accountants, they often feel that there accounting is “taken care of.” What they really mean is that there employees are getting paychecks, their vendors are being paid, and their taxes have been filed. Phew! That’s what it’s all about, right? Do we do accounting because we have to do it to keep the IRS as far away from us as possible? Most small businesses do. And it’s a shame!
Doing accounting “because the IRS says we have to” is like ordering an ice cream cone minus the ice cream! The barely edible styrofoam cone certainly serves a purpose and is necessary to keep us out of a sticky mess. But the real value in the ice cream cone is the delicious scoop of ice cream on top. The most successful business owners don’t do their accounting to prepare a tax return, much like they do not order an ice cream cone for the bland cone. We should do accounting because it provides a wealth of tasty information that will help us to make and keep more money. Good accounting will make you multiples of it’s cost!
Below are some questions that successful business owners ask and answer frequently. Whether or not you do business with us, if you will ask and answer these questions every month, your business will benefit.
- How do last April’s expenses compare to this April’s expenses, and why?
- What types of advertising are paying off, and which aren’t?
- What is historically my most profitable month?
- Which month is always terrible, and what can I do now to improve it next year?
- How do my overhead costs compare to my competitors’, and how can I reduce them?
- When I go to the bank for a business loan next month, are my financial ratios going to be good enough?
- What could a 5% increase in price do for my bottom line?
Questions like these, my friends, are the delicious ice cream that is so often entirely ignored and wasted. The small business owner often has neither the time or accounting knowledge to answer these questions. They are flying blind! We can help.
At Universal Accounting Services, we provide our clients with peace of mind. They know that their accounting is being done accurately and timely. More importantly, we help them to understand their business accounting by meeting with them monthly to review financial information and ask questions that result in growth and increased profits. If you feel that we can help you or someone you know to maximize their profits, minimize their taxes, and optimize their cash flow, let us know! It’s what we do.
Fight Back!
Tough Economy Hitting You Hard? Fight Back!
Have you been hit hard by the recession? Are you finding that your margin of error in managing your business is gone? Never before has it been more important to fully understand and manage your business by the numbers. Accounting is the language of business. It’s not enough to do the work anymore, especially when the quantity of work may be down. It is critical to fight back by cornering your expenses and profitability.
With a great accountant in your corner (Cut me, Mick!), you too can be a champ. As in any good fight, it’s about being strong on the fundamentals, keeping your guard up, keeping your feet moving, and knowing when to punch. We have helped many other small businesses stand toe-to-toe with the toughest economic challenges. Let us train you for your main event, so you can be the contender you were meant to be. We will get your numbers in order so you can more clearly see the opportunities in your business to book more income and to cut unprofitable expenses. We’ll break it down for you by customer, by product, by employee, by department, by geography, by ad source, and any other way you need it to pinpoint poor performing components of your business, and realocate resources to the high performing components. We’ll cut unnecessary expenses due to late fees, penalties, and interest. We’ll make your business a lean, mean, money machine.
Contact us today to get your business up off the mat, back in the fight, and dominating your competition. Ask about our complementary business benchmarking report that will show you exactly how you’re doing overall and specifically in regard to similar businesses of the same size in your industry nationwide. This is regularly a $300 consultation.
STEVE ECKMAN
(801) 550-7808
stevene@universalaccounting.com
Accounting – Your Management Controls
Would you ever drive your car blindfolded? Obviously, not!
Nonetheless, every day millions of business owners drive their businesses without knowing their financial locations: where they have been, where they are, and where they are going. That sure sounds blindfolded to us.
As your profit and growth expert, our primary role is to ensure that you have the historical data that will tell you where you have been and where you currently are. With that information we can provide a professional consultation that will help you determine where you want to go while creating an action plan that will help you get there.
With this 360 degree view of your business, you can plan effectively and then track your progress against your goals. It will also help you anticipate obstacles so that, when encountered, you can easily maneuver around them rather than allowing them to slow you down.
With our help you can’t go wrong.
Your Own Accounting System
You want an accounting system that gives you peace of mind while increasing your bottom line. We’re guessing that you also want to reduce taxes, improve cash flow, and manage your business more profitably.
That’s what we do best! Work with us, and select the accounting system that best suits your business’s needs:
- Receive training to use a system exclusively designed for your business, OR
- Have us completely manage a custom-designed system at an affordable cost
What Can We Do for Your Business
Wholesale / Retail / Service
Have complete control systems for Accounts Receivable, Accounts Payable, and Inventory.
TV / Automotive / Furniture
Properly account for Contracts in Transit, Bank Reserve Accounts, and Flooring of Products for Resale (inventory financing). Maintain control of income and expenses.
Manufacturing
Control Raw Materials, Direct Labor, Work in Progress, and Finished Goods. Keep expenses categorized into Manufacturing and General Overhead areas.
Construction
Easily track profits or losses on each job in progress. Control cash flow based on percentages of completion. Minimize losses from under-billings created through change orders.
Professional
Control expenses and income for year-end savings. Take advantage of conversion from cash-to-accrual accounting. Manage Accounts Receivable and improve Collections.
Food / Cafe / Beauty
Utilize a combination of Cash and Accrual statements. Have a low-cost, low-maintenance accounting system.
Enjoy an accounting system designed specifically for your business that shows where you stand at all times. Simplify the books that maintain all your financial data:
- Cash Receipts
- Deposits
- Charge Accounts
- Credit Purchases
- Cash Purchases
- Bank Reconciliations
- Depreciation
- Adjusting Entries
- Inventory Control
- Reconciliations
- Income Statements
- Balance Sheets
- Individual Accounts Receivable Records
- Individual Accounts Payable Records
- Payroll Journal
- Individual Payroll Records
- Property, Plant and Equipment Records
Incredible Benefits You Will Enjoy
Your accounting system will be tailored to your business. You can do it, I can do it, or we can do it together.
Your bookkeeping/accounting costs will be substantially reduced.
Your personnel will be free to produce more profits for you.
We can help you acquire funding for your business through financing, investors, and other means.
You will receive properly-designed financial statements that will allow you to manage your business efficiently and help you better plan for the future.
Choose from hand-posted or computerized programs specifically tailored to meet your accounting needs.
Streamline the accounting task, and free up your valuable time. [Consider this: the average small business owner spends over 10 hours personally, each month, accounting for the business. If your average billing rate is $50 per hour, you may be spending more than $500 of your time per month.]
How Would You Describe Your Business?
- Steady and stable
- Growing fast
- Hanging in there
- Brand new
If your business is steady and stable or growing fast, then congratulations! But IT IS POSSIBLE for your business to improve and generate more profits!
If you’re just hanging in there, you can turn things around . . . FAST!
If your business is brand new, don’t make expensive mistakes that will mean be the difference between success and failure!
No matter which of these groups describes your business, you can benefit from these small business services that can save you both time and money!
Why our Services?
Not only is our company genuinely interested in your business’s success, we are also dedicated to providing you with a broad variety of business accounting services at a very affordable price.
We want you to feel like you are our only client. If you have a priority, it becomes our priority, and we will quickly supply the answers you need to run your business profitably. Regardless of company size, our clients should expect our utmost attention.
In working with us, you have access to all the resources of a full-service accounting provider. We have the capacity to fulfill virtually all of your accounting needs; and if we can’t we will connect you with professionals who can.
Custom-Designed Small Business Accounting System
In today’s competitive environment, information is power!
You’ll uncover a goldmine of profit-building information as you assess your financial standing, and when used properly, this information can help you better plan for your business’s success.
Call today for a free consultation. There is absolutely no obligation of any kind.
It will be well worth your time!
Do you have a customized accounting or bookkeeping system? Take This Quiz:
Can you answer these 10 questions about your business?
- Were my total sales up or down last month? And where they designated by category?
- What was my total gross profit last month? And was it designated by sales category?
- What is my gross profit per item?
- What were my expenses by category last month?
- Who owes me money and how much?
- Who’s behind in paying me and by how much?
- How much inventory do I have, in total and by item?
- To whom do I owe money and how much?
- What was my profit last month?
- How much do I OWN, and how much do I OWE?
Were my total sales up or down last month? And were they designated by sales category?
You need to know: If your sales are up, you’ll need extra cash to buy replacement inventory. If your sales are down, you’ll want to pull back on inventory purchases. Sales increases in a category can indicate a new growth opportunity. Sales decreases need to be investigated to determine the reason for the loss.
What was my total gross profit last month? And was it designated by sales category?
You need to know: Gross profit shows the profit remaining from sales after subtracting the cost of the products and/or services you sold. Changes in gross profit indicate whether or not your pricing strategies are working. Cutting prices to increase sales can hurt you if it reduces your gross profit.
What is my gross profit per item?
You need to know: Pricing should be based on profit goals rather than simple conjecture. By raising the prices on some items and selling others near or below cost, you can change your inventory mix and increase gross profits. An increase of just 1% may add thousands of dollars to net profits. You can give sales incentives that will cause employees to sell the most profitable items instead of the easiest ones.
What were my expenses by category last month?
You need to know: Are payroll costs too high? What about other costs, such as insurance and utilities? In order to cut back on expenses, you must first know which costs are excessive. Also, recording your expenses each month ensures that you get the maximum tax deductions.
Who owes me money and how much?
You need to know: You can’t expect to get paid in full unless you tell customers exactly what they owe. An itemized, neatly printed, and up-to-date monthly statement tells customers that you expect to be paid on time and according to your payment terms.
Who’s behind in paying me and by how much?
You need to know: Customers who fall behind need to be contacted immediately and continuously so that it doesn’t become a habit. Also, before you approve a new order from a customer, you’ll want to know if that customer paid you on time for the last one.
How much inventory do I have: in total and by item?
You need to know: If you’re running low on an item, you can reorder in advance and never run out. Plus, you can avoid rush delivery charges. If you have too much of one item, or too much inventory in general, you can cut back on your inventory investment. Also, you can compare a physical count with the books and identify a shortage before it threatens to put you out of business.
To whom do I owe money and how much?
You need to know: Many vendors offer discounts for paying bills in less than 30 days, which can add up to big savings on an annual basis. Paying your bills on time will also increase your chances of qualifying for business credit. Plus, you can plan for your cash requirements and reduce the need to borrow from your own funds or a bank.
What was my profit last month?
You need to know: A monthly profit figure gives you the financial bottom line and lets you know where you’ve been and where you’re going. Plus, you can save thousands of dollars on year-end tax return fees and plan for taxes in advance.
How much do I OWN, and how much do I OWE?
You need to know: Keeping track of your current assets and liabilities allows you to plan for your cash needs and helps you stay in compliance with loan agreements. Plus, you’ll be ready to respond to questions on demand from suppliers or potential customers.
Which of the following best describes Your Accounting System?
I do it myself
Your time is so much more valuable than that! You are the world’s #1 expert in running your business. While you are busy managing the books, your competitors are designing new products and services, preparing new advertising, collecting past-due accounts, and shopping for less expensive suppliers. These tasks are essential to the growth of your business. Are you sure that your accounting system conforms to proper rules and procedures? Even more importantly, do you get all of the valuable information described here from your system?
I have an accountant
Does your accountant or bookkeeper provide you with all of the information described here? Does your accountant take the time to explain what the numbers mean and how you can use them to manage your business more profitably? Do you feel you are getting the best possible value for the fees you are paying?
I don’t have a system
There isn’t a better time than now to get started! Studies have shown that small businesses often fail because they don’t have a good accounting system in place. We will work with you to develop a system for your specific business that is so easy to use that you’ll be amazed. If you can drop a piece of paper into a file folder, you already have the necessary skills to use it! You can obtain all of the valuable information described here. Plus, you will understand what the numbers mean and how you can use them to manage your business more profitably and better control your future.
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