Category Archives: Information

7 Things Customers Want But Won’t Tell You – American Express Forum

Did you know that your customers lie to you constantly? It’s not to hurt your feelings, but usually to protect your feelings and avoid confrontation. When you ask how things are, they say, “Good! Good!” Then one day, totally out of the blue, they fire you. The customer didn’t tell you in so many words there was a problem, but if you had paid attention, you would have seen the warning signs.

Here are the 7 things customers want you to do, but will never, ever tell you about.

1. You (and your team’s) looks matter. I know, looks shouldn’t matter, but they do. When a client interacts with you, they want clean, well put together people who are pleasant, positive and professional. If your office doesn’t have a dress code, perhaps it’s time to lay down a few ground rules, but be sure to keep it in line with your company’s culture.

2. Prove to me you want our business. When you go to pitch that big prospect, are your first words to them, “Tell me about your business?” If so, you just offended them because you didn’t make the effort to learn about them. They won’t tell you that. They simply won’t hire you. Go in with all the research under your belt before you start talking. Then tell them what you know about them, and ask them to correct you where you may be wrong (which you won’t be, because you did the research).RELATED: Uncover the Truth: 7 Lies Customers Tell

3. You’re making things too complex. As you explain what you do (or are doing, or are going to do) for a client, keep it simple and stick to the basics. Remember, they hired you to take on a project or take care of a problem; and many don’t want to know the itty-bitty details. Keep it simple. Don’t confuse your client.

4. I want you there 24/7. Clients and customers like the idea that you’re there for them whenever they need it, in an emergency, even if it’s because of their lack of planning.

5. I want to only deal with you. Clients know that presidents and CEOs have the firepower to get stuff done, and they want to deal only with you. Try to be consistent with your interaction with your clients across the board: They definitely don’t want to feel like you’re passing them off to an underling in favor of a more important client.RELATED: Are You Making Your Customers Uncomfortable

6. A token of appreciation would be nice. Thank you gifts can go along way to showing a client you care about them, and that you appreciate their business. It doesn’t have to be over-the-top expensive; a thoughtful gift goes a long way.

7. Impress me! Who hasn’t heard “we don’t have a budget”? The truth is, they do have the money—they just prefer allocating it to something else. Give them a reason to spend their money on you.

via 7 Things Customers Want But Won’t Tell You – OPEN Forum :: American Express OPEN Forum.

Payroll Audits Put Employers on Edge – WSJ.com

Internal Revenue Service auditors showed up with little warning at Brian Robinson’s staffing firm in Atlanta a year ago, seeking to verify that a dozen outside contractors he had hired to handle his information-technology services weren’t, in fact, full-time staffers.

The audit was part of a government crackdown on employers who misclassify workers as independent contractors to avoid paying payroll taxes, and other employment-related expenses.

TRC Staffing Services CEO Brian Robinson says that the legal distinction between full-time staff and independent contractors can be very confusing for many employers.

Mr. Robinson says the auditors ultimately found that his 30-year-old family business, TRC Staffing Services Inc., with its 100 permanent employees and up to 20 temporary workers, was in the clear. But he says the audit was “nerve wracking” because tax law doesn’t make it easy to distinguish between full-time staff and independent contractors doing full-time work. He says the legal distinction can be confusing even for an employer with his decades of experience in the labor market.

The appeal of using outside workers is growing as many small businesses struggle to stay lean. Some employers also are turning to contractors to avoid hitting the 50-employee threshold that would require them to pay for employees’ health insurance, starting next year, under the federal health-care law, or pay a penalty.

State studies have shown that local businesses misclassify anywhere from 10% to more than 60% of their workers as independent contractors. Many business owners blame the complex tax code, which doesn’t offer black-and-white standards for telling the difference. The distinction is based on the employer’s degree of control over a worker, the length of the relationship and a series of other factors. But such factors are open to interpretation. Past court cases on the issue have

via Payroll Audits Put Employers on Edge – WSJ.com.

Budget…not a 4-letter word

Budget is not a bad word. On the contrary, it is something every business needs to pay careful attention to. Running a business without a budget is dangerous at best. In order to plan for future growth or expenses a budget is a necessary tool to have in place. Also, keep in mind a budget is not a fixed tool. It is fluid and needs to be referred to often to see if the business is healthy or if it needs some tweaking.

If you find budgeting intimidating, give us a call. We can help you set up and manage your business budget.

What is a budget? A budget is simply a tool that tracks expenditures and helps plan how money will be used. A well planned budget takes the guess work out of both day to day bills and long term goals.

Realize that a budget will not solve financial problems. It is simply a tool to help identify and address problem areas.

If you are in the process of starting a business and don’t have a previous budget to use, research typical costs and sales trends associated with firms in your sector and determine averages.

Keep it simple. There is no need to list every expense in great detail. For example, combine your office supplies into one category.

•          Calculate net cash flow: This is the most critical part of a budget. Calculate the funds the company brings in. Gather every financial statement possible including bank statements, investment accounts, all utility bills, and all sources of income and expenses. The goal here is to create a monthly average, so the more information you can find the better.

•          Record all sources of income: Hopefully, your business is already set up in electronic software such as QuickBooks. If so, this part will be fairly easy. Compile specific reports to get all of the information needed.

•          Review bank and credit card statements: These are all recurring expenses that have fixed amounts. Review the last 3 months in order to obtain a good feel for the pattern of recurring expenses.

•          Create a list of monthly expenses: Write down a list of all the expected expenses you plan on incurring over the course of a month. Then break the expenses into two categories: Fixed and Variable. Fixed expenses are those that stay relatively the same each month and are a required part of a business. Variable expenses are those that change from month to month.

•          Analyze results: If you have cash remaining at the end of the month, your financial business life style may be healthy. If your cash flow shows a higher expense column this means some changes will have to be made.

•          Make adjustments to expenses: Knowing that you have accurately identified and listed all expenses, the goal would be to have the income and expense columns equal. Therefore, all of the income is accounted for and budgeted for a specific expense.

If you are in a situation where expenses are higher than income, look at your variable expenses for areas to cut.

Always review a budget monthly. It is important to review a budget on a regular basis to make sure you are staying on track. After the 2nd or 3rd month, compare the actual expenses versus what was created in the budget. This will show where you did well and where you may need to improve. QuickBooks has a built-in feature to help with this process. If you have questions on setting this up in your QuickBooks, give us a call.

Why is a budget important?

Referring to a budget at regular intervals is a very valuable learning tool. Forecasts can be compared with actual numbers. It is important to revisit the budget on a periodic basis to evaluate these numbers and see whether planned figures diverge from the actual. Try to make this a regular part of running your business.

Be flexible. A budget, although a useful tool for remaining disciplined, is not set in stone. A budget should not be used as an absolute ceiling as to how much can be spent but a tool for making sure business goals are being met and all spending is justified.

In the beginning, planning the small business budget may seem like an overwhelming task. However, over time you will see how this simple planning tool actually takes much of the stressful guesswork out of running a business and helps you in getting control of your business.

–Fran McCully, Your Administrative Solutions 2013

Do You Check Credit References Before Extending Credit?

Don’t just ask for a credit-reference—use it. Simply providing credit references does not make someone creditworthy. Checking credit references isn’t bad manners—it’s crucial for avoiding disaster. Make sure your credit application or other signed document gives you permission to contact references.

Three key questions to ask when contacting a credit reference are:

“How recent was your latest transaction with this firm?” If the most recent transaction was not within the last 4 months, the information may not be of great value because your customer’s financial position may have changed materially.

“Are the references related to the prospect in any way?” This may be difficult to assess, since people may lie. Use your instincts to decide how accurate the answer is and whether to probe further.

“Would you consider this firm a good, slow or bad payer?” Talking to a few references now can save you months of stonewalling down the road.

–Attorney Donald B. Kramer, J.D., President, Kramer & Frank, P.C. via AIPB Bookkeeping Tips

Corporate Profits Soar as Worker Income Limps – NYTimes.com

With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.

That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.

With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.

via Corporate Profits Soar as Worker Income Limps – NYTimes.com.

Raising the minimum wage: Trickle-up economics | The Economist

 

Mr Obama’s proposal would boost the nominal wage to $9 per hour by 2015, restoring it, in real terms, to its 1979 level, though relative to median wages it would still be lower than in many other rich countries. Thereafter, it would be indexed to inflation. He would also raise the minimum wage for workers who receive tips for the first time in over 20 years.

The proposal drew the predicted response: labour and liberal groups said it would reduce poverty and raise the spending power of the poorest workers, while businesses and Republicans (whose co-operation is needed if the proposal is to become law) said it would cost low-skilled workers jobs.

via Raising the minimum wage: Trickle-up economics | The Economist.

348 Days Until Obamacare is Fully Enacted — Do You Know What To Expect? – Forbes

As the full enactment of Obamacare approaches, there are many factors that business owners know to look out for. Do I need to provide health insurance to my employees? Should I go to an exchange? How will the mandate impact my business and profitability? How much are my health insurance premiums going to go up?

These are all questions that many business owners are starting to look. Below are some points that you may not have thought of that should go into your business planning.

We all know that health insurance premiums are expected to go up, but do you know how much?

Small groups 2-99 employees can expect to see price increases between 20% and 50% upon the full enactment of reform.

When factoring in medical trend, taxes and fees, carrier and product changes and the introduction of community rating, your premiums will jump significantly.

As a small business owner, asking your existing broker for a quote is not going to solve this problem as it will require a new method behind providing employees with health insurance. The objective of a health insurance plan should not be to carry you over to the next year with as little pain as possible, but to address your company’s healthcare expenses for the long term. You need a road map that will allow you to offer affordable coverage to employees while keeping costs in line.

Some employers are looking to drop plans in order to remain profitable. Unfortunately, this is not the answer and can cause more pain than gain. With the Supreme Court upholding the individual mandate, all Americans will be required to obtain health insurance or pay a penalty. The cost of obtaining coverage for individuals is expected to jump 100% – 200% with an average increase of 116%. This is going to push many employees who either have individual plans or would ordinarily look at obtaining individual plans to go to their employer to obtain coverage. By not obtaining small group coverage, you risk losing your talent to other companies who are willing to absorb the cost. This can result in the loss of business and inevitably impact the bottom line more then not offering coverage at all.

via 348 Days Until Obamacare is Fully Enacted — Do You Know What To Expect? – Forbes.

Hands Tied: Businesses Look for Ways Around Health Care Law | Free Enterprise

With the reality of the new health care law slowly setting in across the country, small businesses are making plans to protect themselves from the most onerous provisions.Some small businesses are making plans to cut workers hours to 30 hours a week. Or, pass the costs on to customers through a surcharge. Still others say they won’t grow their business at all. Now the Wall Street Journal reports that some companies are looking at splitting their companies into separate entities to stay below the magical 50 employees threshold. Under the Affordable Care Act, businesses with 50 or more full-time equivalent employees will be required to offer workers health insurance or potentially pay a penalty starting in 2014.

via Hands Tied: Businesses Look for Ways Around Health Care Law | Free Enterprise.

Hiring a Bookkeeper or an Accountant | Entrepreneur.com

Most people in business for themselves, especially those starting out, believe they can keep their own books. After all, they find plenty of good accounting software on the market, programs that practically fill the spreadsheets out by themselves. They believe they can save money and at the same time keep a closer eye on expenses when they write every check themselves and balance every account.

Those arguments have a lot of appeal. But I’ve found that in the long run, a bookkeeper or accountant is not just someone who keeps track of the pennies and receipts, but a key member of your management team. I ask my accountant whether I should lease or buy a car, extend a business trip into a vacation, and how much I should put aside for retirement. In short, specialists are worth their salt because they know how to save you time and money.

via business – Hiring a Bookkeeper or an Accountant | Entrepreneur.com.

The Day – Google stock price plummets after leak | News from southeastern Connecticut

How glad am I this morning that I’m not the R.R. Donnelley employee who released Google’s financials early?

The sell-off of Google’s stock began swiftly and brought the price down almost 9%. This occurred because investors weren’t expecting those disappointing figures after the stock price had reached an all-time high over a continual increase in the previous three months.

Trading was actually suspended for three hours after the race to sell began to “allow investors to digest the information.” After this digestion, apparently, cooler heads prevailed and the stock recovered slightly.

What can we learn here? Bad news—especially bad financial news—must be communicated effectively. At Moore Bookkeeping, our goal is to produce accurate, timely financial information that you can use to operate your business. Give us a call and let us help you avoid getting blindsided.

The Day – Google stock price plummets after leak | News from southeastern Connecticut.