SMB Accounting Tips Advice

Timeless Advice-Book Review My 50 years in Dayton

Leave a Comment

Book Review: My 50 years in Dayton by Stanley C. Allyn

You probably won’t find this in Google search, I didn’t. It is in booklet form, not perfect bound, and is only 31 pages long, but the business advice from it is timeless. I think the Carillon Park book store still has copies. It is My First 50 years in Dayton by Stanley C. Allyn (former CEO of NCR corporation).

In chapter 4 Mr. Allyn gives his 4 big jobs for management teams (These ideas were written in 1963! They are timeless and far seeing):

1) See to it that the company makes a satisfactory profit.
2) Keep the company’s products up to date, whether they are material goods or services.
3) Earn the enthusiastic support of all employees.
4) Make certain that the company is good citizen of the community in which it operates.

Point one is very obvious, a company that can not make a satisfactory profit will not last, and Mr. Allyn states that managers do not have to be defensive about this goal. Frankly, at the end of things, if the company can not make a profit then all members of the company are looking for new work!

Point two is also almost taken for granted and it is given lip service in about every company that is in existence, but far seeing companies never taken this for granted they change and evolve over time, no matter what their form of business endeavor.

Point three is rarely found is today’s business, frankly I have had more than one manager tell me “who cares what the front line employee thinks. If I can get buy off from other managers, so be it, they have to keep their employees in line not me.” Companies that regard their employees this way are doomed to fail. Here is a bit of my own advice, call if prophecy if you wish: “America will not return to economic greatness without 2 important components of American business: One, America will not return to economic prominence as long as its businesses employ in its labor force: temporaries, short term hires, casual hires (throw away employees) and contractors. I will address this more in my next article.

The second is that America needs another technological innovation like the internet or personnel computer.

Point four, doesn’t BP wish they had followed this advice? How many American companies wish they had followed this advice (they are legion!)?

In all, if you are a small to medium business owner spend the $4.00 and 30 minutes of your valuable time and buy the book. It is an interesting read and the business advice is wonderful from a guy that definitely succeeded!

Looking for a GeoVison Security Camera System to help secure your small or medium business? Call www.CameraSecurityNow.com today at 877-422-1907 for a free phone consultation. Ask about the new Hybrid DVR/NVR surveillance solutions.

Is your business behind the money curve?

Leave a Comment

Does your business have a nice sized A/R but little money to show for it? Is your company accounting manager always ducking collection calls? You may be behind the money curve. Here’s how it happens:

You may have a few large customers that name their own credit terms or just pay slow. The key ratio that every business owner should know is days sales outstanding or DSO. DSO measures how long it takes for an invoice to be turned into cash. Your accounting manager can calculate this number for you or you can find the formula here:

http://www.investopedia.com/terms/d/dso.asp

The idea as the business owner is to turn your receivable into cash as fast as possible, the larger the DSO number the longer it takes. All business have creditors and suppliers and the problem is when your business pays out faster than your finance department can collect the receivable, in consumer terms, you’re upside down. How can you speed up the process?

1) Motivate the collection staff-If you really want to know where the problems are with your business, take a trip to the credit/collection department. Good credit people will usually have a solution as well. I know it’s not in vogue in these economic times, but offering a bonus for cash collected is not a bad idea. In fact, it’s a very good idea.
2) Offer a cash discount-This is giving some of your profit away but it motivates your slower paying customers to pay, it may be worth the 1 or 2 percent discount.
3) Factor your invoices-Selling your invoices to a factor also takes away profit, but you get your cash over night. Factors are great financial advisors since they are in “the money game” every day.
4) Transfer some of your risk to someone else-This strategy is probably for a medium business. Some business set up a dealership network to service certain accounts. They sell their product to a middle main who then deals with the slow paying account. The middle man then charges a premium for the product or service because he knows he’s going to wait to be paid.
5) Try to get some of your money upfront as a down payment (medium to large companies will resists this strategy so be prepared)
6) Take credit card payments-this is another strategy to get paid in a very short time, just make sure you read the agreement very carefully.

Looking for a GeoVison Security Camera System to help secure your small or medium business? Call www.CameraSecurityNow.com today at 877-422-1907 for a free phone consultation. Ask about the new Hybrid DVR/NVR surveillance solutions.

10 Accounting Tips for Small Business

Leave a Comment

1. Maintain records regularly. This is one of the most basic rules: If you don’t keep accurate daily records, you don’t have an accurate way to track the financial condition of your business. Different people use different record-keeping systems; what matters is that you have one and use it every day. Once you have a good system set up, accurate record keeping will take just a few minutes a day.

2. Handle and review checks carefully. It’s easy to be on autopilot when you’re writing checks and tossing canceled ones into a filing cabinet without reviewing them. Remember: Those checks are as good as cash. And if something goes wrong, you — not the bank — will be on the hook. This means keeping your checks in numeric order, not skipping checks, and keeping separate bank accounts for your business and personal funds.

3. Protect your company from check fraud. Set up financial limits for checks with your bank. Require 2 signatures for checks over $5000. Ask that your bank never cash checks made out to an individual, except for payroll checks, which should be written from a payroll account and only to designated individuals. Keep inventory of blanks checks — and keep all checks secure in a safe or lockbox. Take the same care with checks as you would with cash. Sign checks using a clear, distinctive signature that won’t invite forgery.

Read Full Story: 10 Accounting Tips for SMBs