Fire your Accountant & Hire a Partner

Are you becoming a “Business Cyborg”?

Posted on 18 January 2011 | No responses

I recently listened to a lecture where the speaker said we are already cyborgs.  I agree, based on the classic definition of “cyborg”. The question I am asking you is it a benefit to be a “business cyborg”?

The lecture defined cyborg like this, “A human being whose body has been taken over in whole or in part by electromechanical devices”. The first and most obvious device is your cellphone.  Don’t believe it? Try living without your cellphone for a day. No, not on Sunday or whatever day you don’t take calls, try Monday!

Back to being a “business cyborg”, my definition, “A human being who uses electromechanical devices to increase efficiency and or profit”.  Are you using your electronics to make more money? You can, you should and you had better…because your competition certainly is.

1.Smart phones, like the iPhone or Android, so you are available where ever you are.

2. Make sure you have WiFi or 3G access for your cellphone. This allows you to get your emails, texts, even access your computer from anywhere.  Become portable so you can make profit anywhere, anytime.

3. Rent space on the cloud so your documents are all in one place, backed up and available 24-7 via the internet.

4. Blue tooth headset - Yes, a simple headset…means you can multitask. Walk and talk so you are making money while you are on your way to making more money.

5. Use a linked calendar – Link your phone to your computer so any appointments you make are on your desktop and your phone at the same time.  You should never ever miss an appointment. Try Microsoft Exchange.

6. Flash drive or USB Key - These are small enough to fit on your key-chain, large enough to store most of your important files and folders.  Get one, you’ll be surprised how often you can use it.

I am quite sure there are many, many, many more ways to use technology to improve your efficiency. This list is very small.  Do you have any great ways that help you?  Post them here, share…it will come back to you.

On your team,

Mark Kennedy

Is Your Software Efficient?

Posted on 28 December 2010 | 2 responses

I remember the days of past when all of my accounting work was done by hand. Lots and lots of number crunching and there were tons of them. In the early 1980’s, computers were the way of the future and there was a lot of excitement with every upgrade. I still can see in my mind how much faster my new 486 computer was than my 386. I was just in AWE and the software that started coming with it was simply AMAZING!!!! I loved Lotus 1-2-3 and resisted Excel as long as I could. These software upgrades were going to make everyone’s work that much easier and give everyone plenty of time off, right?

Over the last 10 years, there have been many software packages in the accounting field. You guessed it as I am going to stick with what I know best. Just hang in there with me as there is a point to all of this. No matter what you use, each piece of software makes the claim that theirs is the best, easiest and will give you the information you have been wanting at the simple touch of a key stroke. The bulk of these packages are directed at small business owners and I can tell you first hand that it has created more confusion, coupled with the same poor quality of record keeping as before the computer age. Most of the people who buy it usually end up storing it on some shelf. If this is true then what’s really going on?

You see, regardless of the method of recording, the person doing the task still has the same old habits. WOW, rocket science, right? Not!!!! You can invent all you want in any field, but until the person using it is helped in doing their work in an efficient manner, you will still have poor results. What’s the answer you say? Stop pretending that there is a shortcut and make sure that whatever you use provides the result you want. Sure, software has reporting capabilities that using the old “hand” written method does not. With this being said, why do we have to use all these new fancy modules? What was wrong with the old way of doing things and just adding the reporting feature? What I propose is that no matter what software you have, go back to the very basics. In any sport, the athletes who perform the best are the ones who work on the basics on a regular basis. For a boxer, a left hook is a left hook. For a baseball batter, a hit is a hit. Just learn the basics through repetition and you will be a champion in your field.

For any accounting software program, just use the general ledger like you did in years past. You will be able to enter the necessary info in your program and you can avoid most if not all of these new modules. Couple this with just a few of the enhancements that you no longer have to worry about, such as your debits and credits actually balancing if you do both sides of the entry and automatic report updates because every time you make a change, your reports are automatically updated (make sure you turn on this option). In my opinion, the old ledger sheets were perfect and all of these “new modules” have confused more people than they are worth.

It seems that most accounting software packages that I have looked at still have general ledger capabilities. If this was the way of the past to record transactions, why can’t it be used today and into the future? I can’t see any particular reason, can you? I have tested this approach and I can tell you first hand that it saves you both time and money. How? The time it takes for to you reconcile your bank and credit card statement(s) is shorter and any time you save can be used to go and make money working your business. If you don’t want to make any more money, go and take some time off and enjoy yourself.

On your team,

Vince Schembri

PS:       Merry Christmas and a Happy New Year

PSS:    If you love Italians like I do, check this link out: http://www.youtube.com/watch?v=ZzTBc-ARN5Y Play it a little loud as I did and have a good laugh……..

Why should you care about Bookkeeping Systems?

Posted on 22 December 2010 | No responses

Benedetto Cotrugli is credited with inventing the double entry bookkeeping system, but it was Luca Pacioli who is credited with designing and writing the book on accounting in 1494. Today we still use that system, or at least most companies do.

Modern day software like QuickBooks, Simply Accounting and MYOB are based on this method. You may ask, so what? These software automatically create a second or balancing entry for every transaction. Why? So that you know for sure that everything is accounted for, right down to the penny.  Accuracy counts, especially when you are counting your profits.

The simple roots of bookkeeping have been practiced for thousands of years. Recording transactions has been found in tablets dating back to 4000 BC. So why should you care? Because the simple practice of recording transactions can get lost in the complexity of modern bookkeeping software. Again, sooo….what?

The more complex the system the more time it takes to perform the task. Cost is something you need to pay attention to as it affects your profit. A Rube Goldberg machine is a deliberately over-engineered machine that performs a very simple task in a very complex fashion, usually including a chain reaction. (The expression is named after American cartoonist and inventor Rube Goldberg.)

Ask yourself, “When you look at your bookkeeping software or system, is it simple?” Have you created complexity in your tasks and record keeping that takes more time than it should, costing you more money than it should? The chain reaction is that your business gets less of your creative focus and energy, meaning less profit.

If you are planning on doing your own bookkeeping, do only what your accountant needs done for your annual financial statements. If you are outsourcing, carefully analyze what information you are recording, how much does it cost and is it required.

Who’s system will you follow Luca’s or Rube’s? When choosing a bookkeeping software or system, choose one that is simple and easy to use. Then get out there and make more profit in your small business!

On your Team,

Mark Kennedy

Technology, time saver or time waster?

Posted on 15 December 2010 | 3 responses

Back in 1981 when dinosaurs roamed the earth and there was no internet to access if you weren’t the military or a super geek, technology was the bright promise of a brave new world. This would make us more productive and accelerate our lives to light speed success and happiness.

When I took my first computer course, we learned how to write programs for “word processing”, “spreadsheet calculating” and “data storage”.  We used this thingy called DOS and wrote programs in “basic” language. Wow, have we come a long way!

Zoom forward 30 years and I wouldn’t be caught dead trying to program anything. Word processing is built into everything, a calculator is part of every piece of software written, and, for real people, data is stored everywhere I look. This now includes my TV, car and coffee maker. Oh yeah, let’s not forget my computer, laptop and smartphone.

Back to the question at hand, do I save time using technology? Sometimes yes, sometimes no. It really depends on my philosophy as a user and what I want from my technology.  As an example, many small businesses start using an excel spreadsheet to track their accounting data.  They store receipts in a box and pray that their accountant can make sense of it at year end.  At some point their accountant says, “Hey Joe (or Janet), get out of the box world and use this great bookkeeping software”.

You now have a new challenge in that you have to learn a new piece of software, designed by accountants for bookkeepers and sold to entrepreneurs.  See the problem? This is not going to save you time unless you are super computer adaptable, learn at light speed, and have a retention capacity for mundane boring tasks. Oh yes, you are now a accountant/bookkeeper.

If this sounds like you, you are better off to hire a bookkeeper who knows the software, is trained and will USE TECHNOLOGY TO SAVE YOU TIME. The goal is to save time! If you learn it and do it yourself, you haven’t saved a second of time. In fact, you have used more time than you can ever get back in money, personal rewards and profit.

The answer to the above question: Technology is a time saver when used by the person the software was designed for.  All others fall into this category -  technology is a time waster and you could be using your time more efficiently. My conclusion – do what you do best, hire someone else to do the rest!

Do you have a story where technology saved you time? Tell it here…prove me wrong.

On your team,

Mark Kennedy

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