A few tips to increase productivity!

Productive

Everyone has those days that they wake up and just aren’t in the mood to get started working.  But as a small business owner if you don’t get yourself motivated no one else will.  Without productive days your business can’t grow and move forward.

Here are a few tips I have found that work for me to get going on the days that I feel as though I may have lost some motivation.

  1. Knock out the important stuff first – When you look over your to do list for the day there is usually at least one or two things that have to get done.  Unfortunately these tasks tend to be the not very exciting but necessary for your business.  Just get them over with first and then move on to the fun stuff.  Once they are done you can move forward and forget about them and enjoy your day.
  2. Set up procedures – Most small business owners have procedures that they keep in their head to get things done.  Spend a little bit of time and get these written out on paper.  Having written procedures can really help to make you feel more organized and efficient with your time.  Also these written procedures will give you a back up option in case you get slammed and need to delegate some tasks to someone to help.  Now you can just hand them the procedure and feel confident that the task can be done correctly with limited direction.  Doing this work ahead of time can save you precious time in the future when your business is thriving and you need that extra time to get stuff done!
  3. Listen to music – This is my favorite tip!  I feel like when I turn a radio station on that is playing my favorite songs I can start knocking out tasks with ease.  Find that song that you listen to at the gym that gets you pumped up and play it while you are working.  You would be amazed how quickly stuff gets done when you are feeling energized by your favorite music.  I am always amazed at how much music can impact someones mood so why not incorporate it into your work routine as well.

I always love to hear from others too!  These are just a few of my favorite productivity tips but if you have some feel free to share.  I would love to extend my list with ideas that others have used.

And, as always if you have any questions do not hesitate to ask.

robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com

QuickBooks offers Free ACH Payments

Did you know that you can set up ACH payments in QuickBooks Online for free.  There are several reasons to utilize this great service.  This is a great feature for small businesses to reduce fees that other payment processors charge and increase profits!  You can also organize your invoices in one place to help keep things organized.  And finally, your payments go straight to the bank so you don’t have to mess with any transfers later on.

Here is an easy to follow video that will help you set up QuickBooks Payments for your business!  I can set these up for you as well, so if you need any help feel free to send me a message.

And, as always if you have any questions do not hesitate to ask.

robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com

Should you let your spouse or family member keep your books for your small business?

When a small desktop-computer-typingbusiness owner first starts out they are often looking for ways to reduce expenses to get going.  One of the bigger expenses can be setting up and maintaining your books.  Often times business owners will look to a family member to keep their books for them not realizing the pros and cons that go along with this decision.

I’m sure you’re thinking why wouldn’t I let my spouse do my books, they’re free which is important when there isn’t any income in the business yet and I can trust them because they are working towards the same goals that I am.  But there are some serious concerns to take into consideration before allowing a spouse or family member maintain your bookkeeping for your small business.

Things to consider:

  1. Industry knowledge – Most bookkeepers specialize in a niche and are able to answer industry specific questions. If your spouse or family member has never worked in the industry they may not know some of the issues that can come up and how to handle them appropriately.  Each industry has specific bookkeeping metrics to look at that will help them to make better business decisions.  Having a bookkeeper that is knowledgeable about those metrics will help your business succeed!
  2. Accounting experience – Many family members don’t have any professional accounting experience and this can be a huge barrier to producing a quality set of books each month. This can often cause unnecessary stress as well when they aren’t sure exactly what they are doing.  Using your financial statements to make better business decisions is essential for moving forward with your business.  Be sure to check with your family member and ensure they have a solid understanding of the Generally Accepted Accounting Principles (GAAP) to ensure your books are handled correctly.
  3. Business decisions – Many business decisions are made based on issues identified in your books. A simple data entry error could end up causing your business hundreds or thousands of dollars.  For a new business this could be make or break.  This data entry error could just be from lack of knowledge about how the accounting system works.  Having a professional bookkeeper who knows the ins and outs of the bookkeeping software is important because they will be able to catch these errors easier since they know what they are looking at.

Saving a few dollars in the beginning by hiring a family member may not make the most sense moving forward with your business.  Consider reaching out to a few bookkeepers and learn about their services before deciding on a family member.

For more information do not hesitate to ask.

robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com

Tracking Stocks

Just like in business, when trading stocks, you need to track your performance in order to know if your strategy is working.  I had a request to develop a spreadsheet to track stocks. I developed this spreadsheet with the fact that the person had multiple brokerage accounts. Here is a screen shot of the column and there headers. I’ll explain what each column is and what it is for. Stock Spreadshee

The first column is the date the stock was brought. The second column is the stock name or symbol. Followed by the name of the account. In this example, the person has three brokerage accounts. One is their “main” account, one is a self managed IRA account and the last account is an accounting that they have with “Robinhood” (Brokerage App) Filters were added so that they can click the filter and filter by only the account that they need to look at. For example filter for only the taxable accounts.

The “Buy” column is where you enter price that the stock was brought at. The “Share” column is where you enter the number of shares brought. The next column is a calculation of cost. It’s simply the Buy price times the number of shares plus the commission (if any). The buy date can be filtered by year and by month so that you can see what stocks you brought by what time frame.

The next set of column are the Sell Date, Sell Price per share, #Shares and Proceeds. The Proceeds column is the only calculation with the rest of them simple data entry. And just like the buy date the sell date can be filtered by time frame as well. The calculation of the proceeds is just like the Cost. It is the number shares times the sell price plus any commission.

The next column is for any dividends that you received, This will factor into the Profit calculation that we will do at the end.  The adjust column for any miscellaneous adjustments that you may have.

The Profit $ column is a calculation of Proceeds – Cost + Dividends + adjustments. This column gives you the dollar amount of the profit or loss for that particular stock. The last column is the profit or loss % for that stock. It is the Cost divided by the profit or loss $ amount.

If you would like a copy of this spreadsheet feel free to send me an email. robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com

 

 

Debt /Equity Ratio

GrowthUsing your financial statements to measure your business is one way to make sure that you and your business is moving in the right direction. In order to accomplish this you need a few things.

 

  • Financial Statements (both accurate and timely)
  • Consistency – In order to track the direction of the business, consistency is key. Knowing your ratios only once in a while will not show a true and accurate picture of your business and can lead to bad business decisions.
  • Picking the right KPI’s (Key performance Indicators) or ratios. Some ratios are a better fit for some businesses more so than others.

The Debt to Equity Ratio is a good ratio to track the businesses financial leverage. It shows as a percent how well the business is at managing it’s debt to make a profit.

The higher the ratio the more reliant the business is on debt to turn a profit.

Example: Company A – Total Liabilities $80,000, Total Equity $120,000

$80,000 / $120,000 = .6666 or 66.66%

Company B – Total Liabilities $150,000, Total Equity $80,000

$150,000 / $80,000 =  1.875 or 187.5%

Company B is higher in debt and more reliant on external loans to make a profit. However, only showing this at one point in time does not show which direction the company is going in. Company A could have a lower ratio right now but shown over time could be increasing and Company B shown over time could be decreasing. Calculating this ratio over time shows the true nature of the ratio and shows if it is improving or not.

For more information do not hesitate to ask.

robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com

 

 

 

7 Best Business Practices

3D-Book-Template 7 best practicesSeven best business practices for small businesses. Are you following them? Click here to Download Free Book and request your copy today!

  • Contents
  • Business & Personal – 1
  • Budget – 2
  • Financial Statements Reviewed – 3
  • Systems & Procedures – 4
  • Tracking Expenses – 5
  • Security System – Duel Control 6
  • Payroll –
  • Contact Information – 8
  • Eagle Eye Bookkeeping Services, LLC. – 8

For more information visit www.eagleeyebookkeepingservicesllc.com

Personal Financial Plan

Financial planYour business needs a budget, yes, but do you have one for you? Having a personal financial plan is just as important as having a business financial plan. This is for a few reasons. One is if you, as the business owner, is having financial troubles it will show through in your business. It will add stress to the workplace environment. It will cloud business decisions and lead to making bad business decisions.

Steps to help create a budget for you personally:

  1. Take a look at each area of your spending. Use your current spending patterns as an initial budget. I say this within reason. If your spending $3k a month on recreational activities you may want to take a look up front and see if you should cut back.
  2. Know your debt and come up with a plan to reduce and eliminate.  Try starting with your smallest debt and get that one paid off first.  Sometimes a victory is just the motivation you need to get pumped to get rid of excess debt!
  3. Build and maintain an emergency fund.  Having at least 3 months living expenses in a savings account reduces anxiety should a major expense come your way.
  4. Open or start contributing to an IRA. Whether or not it’s a Roth IRA or a traditional IRA.
  5. If you have a child start contributing to a Section 529 plan to help prepare for future educational costs.
  6. Have a set of funds that you can invest. Make sure you keep track of the ROI on this. If you have a low ROI or a negative ROI readjust.

Take the time to look at not only your businesses financial plan but your personal one too.

And, as always if you have any questions do not hesitate to ask. www.eagleeyebookkeepingservicesllc.com