ABC's of Accounting

Making a profit is the holy grail of any profit oriented business.  Accounting is the method needed to track profitability.   Accounting is the tool for information gathering in a logical fashion to determine what actions are necessary to run a profitable business.

Step 1:   Create a Chart of Accounts.    What you spend on, what you receive, where they come from and how often does each item appear.   This classification lets you make decisions and gives you proof of the transactions running the business.

Step 2:   Each transaction is recorded in a Journal and summarized by these accounts in a Ledger.   Journals depict Cash you received (receipts)  and Cash paid out (disbusements).

Step 3:   This information is summarized to produce  a General Ledger and is the basis for a Trial Balance.    The Trial Balance is listing of the receipts and disbursements.
If you are a positive (+) balance - YOU MADE MONEY.    If you have a negative  ( -balance then you didn't make a profit.  

Now you can look at the figures that make up this data and see where you spent your money and where your income is coming in.    Now you make decisions on what to do to turn a negative balance around or how to do more in order to gain greater  positive profit.

This system is employed in finite time frames.   Initially it should be done every week to
be sure you are on the positive (+) track or running a business that is (-) losing money.

HINT:   Do not shirk this job.    If you are too busy, engage someone to do it for you.
            Once you are on a profitability (+) track, it's ok to do this monthly, summarize
            quarterly, and of course yearly for our friends in the IRS.

Mike Lupo
SCORE Counselor
mlupo812@bellsouth.net
contact us heree

Finding and hiring employees

As your business grows you want to hire a great new employee.   They are the face of your business!   How can you evaluate potential starters and pick the right one?

Historically networking family & friends is a nice safe start.  What other sources are available for prospects?  The latest method is through on-line access to new jobs.   The

most common job boards you must review are:   CareerBuilder.com;  Monster.com;  Indeed.com;  Dice. com (last one is a tech driven source)

Using these sites,  a fee is paid to search for and contact relevant candidates who have posted resumes.  Then you short list those that meet your criteria.   Once you pick the person, e-mail or phone for additional specifics to set up an interview.   TALK to them.

ASK THE RIGHT QUESTIONS:  For example....

1.     Exactly what are your qualifications in...."bookkeeping"?

2.     How much and what kind of experience do you have in..."bookkeeping"?

The point is to ask open end questions that stimulate the applicant to talk about themselves.    NEVER ask a question that will result in "yes/no".   You learn nothing.

LISTEN without replying immediately.    Count to 30 before responding.  This is a tactic

 that will cause the applicant to talk more.    We abhor silence when chatting.   By remaining silent the applicant will provide more details about themselves to fill the void.

Finally, when you do make the choice, clearly explain the first 90 days are a provisional

hire.    This is your disclaimer in the event you made a mistake.    

And...build into the compensation a small raise at the end of the 90 days to demonstrate your satisfaction with this person.   You don't have to announce beforehand.   

They will love you forever!

Eric Mankuta 

SCORE counselor

South Palm Beach FL  

emankuta@bellsouth.net

GOOGLE IS COMING TO BOCA RATON

GOOGLE IS COMING TO BOCA
AND YOU ARE INVITED

THE FIFTH ANNUAL SCORE   BUSINESS CONFERENCE      

FEATURING:  

   

JOE DEMIKE - GOOGLE'S DIRECTOR OF BRAND MARKETING   

WILL SPEAK ON HOW TO GROW YOUR BUSINESS WITH GOOGLE

YOU MUST HEAR THIS RIGHT FROM THE PEOPLE THAT CAN MAKE IT HAPPEN -  GOOGLE  

AND:

PATTIE LIGHT - OWNER OF PANDORA JEWELRY - SOUTH FLORIDA  

LEARN HOW SHE GREW HER BUSINESS TO 3 STORES AND $12 MILLION IN SALES IN JUST 19 MONTHS   

MUCH MUCH MORE SO 

SAVE THE DATE

SEE DEMONSTRATIONS OF 3D PRINTERS - SEE HOW THEY CAN MAKE A PROTOTYPE OF ANYTHING OUT OF METAL OR PLASTIC FOR A FRACTION OF THE COST OF THE WAY YOU DO IT NOW

CHOOSE FROM 20 FREE SEMINARS, TALK TO EXPERTS, GET ADVICE FROM BUSINESS LEADERS AND MUCH MORE.   

 

April 20th, 2013
8:00 A.M to 3:30 P.M

At Lynn University
Boca Raton

A FREE EVENT FROM SCORE

 ROOM FOR JUST 500  -  REGISTER NOW

HELP FOR YOUR BUSINESS STARTUP

The BOCA RATON Florida office of SCORE  is part of the national SCORE organization, with 384 offices across the country.  SCORE's 13,000 volunteers are men and women with significant careers in industry and the professions who provide Pro Bono  business mentoring to over 350,000 clients every year.

Since 1964 SCORE has helped over 8 million entrepreneurs.

The Boca Raton SCORE office has been voted # 1 in the nation in 2012 among all SCORE chapters.   Business mentoring and coaching services are provided:   online,
in person,  or via Skype.   For further assistance please contact us at:
SCORE
7999 No Federal Highway
Ste. 201
Boca Raton FL 33487
ph:    561) 981-5180
Or at our website here

Watch this space.    You can e-mail us for specifics:  Here

HOW TO GET PAID ON OVERSEAS SALES

Today we'll look at the safest most assured way to get you money after a sale, and some other ways to complete the deal while offering your customer alternative payment options.

Ideally, asking for payment in advance is most secure.   But that won't work in 99% of cases.    Your customer will want to safeguard that they receive what was ordered and you will want to get paid when you ship.  

The solution is the Irrevocable Confirmed Letter of Credit.   In effect what happens is the customer puts in escrow the funds for the value of their order with their bank.
The customer's bank holds these funds to be paid to you when proof of shipment is presented.

Let's look at the words:   Confirmed means the customers bank has actually deposited that escrow money with your bank here in the U.S.   Irrevocable means the customer cannot change their mind about payment.   You ship - you get paid by your bank.

The controlling paper work is the shipping forms used by the logistics company who handles your merchandise to the customer's destination.   Generally it is the Bill of Lading.    A Bill of Lading is a form just like the one you fill out when you send a parcel via UPS or FEDEX.

What assures your customer that they are getting what they ordered is the description of the merchandise on the Bill of Lading.    Your bank receives the Bill of Lading, takes note that the goods are in accordance to the order and pays you invoice.     The customer has the proof of correct shipment and the deal is done.

There are conditions as part of this transaction which you MUST know in order to protect yourself and the customer.   We'll cover that next time we meet.

Visit us here  

Website Hell

We have been through the Cabbage patch doll craze, the American Girl doll craze the IPod and you name it craze.  And yes…many companies are going through the Website Craze.  They must have a website or else.  And in jumping into this craze many companies are getting severely burnt by unscrupulous web developers or web developer charlatans.

Many companies after spending thousands of dollars on websites are still sitting and waiting for the world to discover them.  The “Build it and they will come” craze has long been shattered for many a company.  And then what do they get roped into after spending thousands of dollars? more and more expenditures on so called “Search Engine Optimization”.  Go to any conference now or networking meeting and you are surly going to hear many asking many others”. Who is doing your SEO”?  The new phrase of the 21^st century, SEO, “Search Engine Optimization”

So you spend $5000 or a lot more for a website no one finds and then another couple of thousand dollars doing that all important SEO.  And if you are lucky very lucky maybe you will get an order.  Maybe.

But wait…what about that website.  How should it be designed to take advantage of basic marketing, how should it be designed so we can attract customers and make them want…yes you heard right…make them want to purchase something from us.  Have you been to the llbean or Amazon website lately?  Let’s face it…if they have what you are looking for…you want to purchase it from them.  And the history of these websites proves that out.  So how do we do that with your website…it’s an art and few practice it well.

So what went wrong with your website?  Simply put…just because you have a website does not mean you can forget all of the very basic concepts of marketing 101.   If I have a store…online or brick and mortar…what will make them come and find me?  Will they come if I am selling ice in the winter…more than likely NO.?  Will they come if I have a restaurant…with out air-conditioning in the peak of the summer?   I don’t think so.  But wait…what if I offer something very special that they cannot get anywhere else and what if dining outside in the heat of the night gives them something very special…maybe in the food, sights or something else.  Well maybe I will then have a fighting chance.

The point is…; just because you have a website you must learn something about basic marketing.  Because it is one thing to get the people to find your website. But another thing to get them to purchase from it.  Conversions are the thing that pays the bills.  Getting people to come to the website and purchase.  So if they come to your store…walk in look around…how do you get them to purchase.

On your website you have to do almost the same type of thing you would do in your store.  Can you attract a first purchase with a special?  A unique product, a unique design or maybe it’s your pricing or guarantee.

Getting people to find your website is an art as well as a science but getting people to purchase from your website is an art.  An art as old as Marketing itself.  Some of the basic marketing concepts have not changed in 1000 years or more.  Learn them and you will greatly improve your conversion rate.

WANT HELP WITH YOUR WEBSITE?  CONTACT US HERE

South Palm Beach SCORE - Who are we?

Voted 2012 chapter of the year out of 384 chapters

SOUTH PALM BEACH SCORE – WHO ARE WE?  WHAT DO WE DO?

You know you are dealing with true experts when you deal with South Palm Beach SCORE

In our past fiscal year (2011/2012) we have served over 6000 small businesses with pro bono business consulting services.

From 2010 to 2012 we served a total of 11,000 small businesses with pro bono business consulting services.

On average this represents businesses with 33,000 employees.

In 2011 we have produced close to 150 local seminars and major business conferences with close to 4500 small business attendee’s.

It has been estimated that we have given more than $4,000,000 in pro bono business services to the local community just in 2011.

Our programs include:

a.    Face to Face private consulting at your place of business or ours.

b.    Consulting over the Internet and Skype.

c.    Webinars, seminars and workshops on cutting edge business topics.

d.    We serve as the point consultant for the Government’s Broadband initiative in all of South East Florida and as such we consult on all the latest Broadband technological services.

e.    We helped established a foundation to help post 9/11 Veterans start or grow businesses by providing business grants to act as seed money.

f.      Publish Books and white papers on various business and technological topics.

g.    Special consulting to inventors and innovators.

h.    Maintain a business women’s roundtable.

i.      Maintain a business leaders Technology and Women’s roundtable.

j.      Maintain teen Entrepreneurial programs with the Boca Raton Chamber.

k.    Participate in Entrepreneurial programs with leading local Universities.

Visit us here