Small Business Accounting Explained

Below we give you some tips on how to make small business accounting more bearable for you.

First, you should make a list of all accounting tasks to perform in your business. Once you have your list, small business accounting is less stressful and takes less time. You will only have to perform one or more tasks at regular intervals (daily, weekly, monthly …).

We also recommend that if do not know a lot about small business accounting, learn the basics.

Small business accounting is a specific jargon and all sorts of words and concepts reserved for the experts. Do not be discouraged if you do not understand them all. Get used to the most basic concepts directly related to successfully improving your small business accounting. Ultimately, the goal is that you increase profit. It is the primary goal of any business. Request help from a professional if you want, but do not miss the basic concepts.

In contrast, it is a mistake to become a super fan of small business accounting. The company does not come down to accounting. There are firms and professionals who do this very well. This is not the job of an entrepreneur to be a know-it-all of Management or Accounting.

The third golden advice is to separate your personal finances from your business finances.

It is a bad idea to mix your personal account and your business account. Separate them completely: even if you’re the sole shareholder in the company, even if only your money is put into the pot. This separation enables you to plan, predict, without confusing personal cash and professional cash. This allows a lucid view of the true accounts of the company.

Finally, you must be consistent.

It may be hard to get used to at first but we recommend that once you create an accounting system for you, you should stick to it no matter what. Remember to register everything, forget nothing, and be consistent. If you are not consistent you will start doubting your own system later which will not help you when you want to evaluate your business performance at the end of the year. It is a good idea to meet with your accountant to have him or her verify the information. 

Scheduling for Your VA Business

Once you get established with a few clients, it’s easy to find your schedule either keeping you insanely busy or insanely bored. There doesn’t seem to be much in the middle, which is your ideal. So this month I’m offering tips on how to schedule your workload out.

First of all, never go over 30 hours a week with scheduling your clients. So make sure you account for that in creating your hourly rate. Why? Well, two reasons. One, this allows you the opportunity to be flexible with your ongoing current clients if they need more from you one week than they do normally. They will appreciate that and their loyalty to you will increase.

Also, it allows you time for one time projects that might drop in sporadically (and with minimum charges on those they usually turn out to be very profitable). This also gives you time to handle some of your own business administrative functions (billing, record keeping, etc.) during normal business hours so you are not up late at night or weekends when you should be spending time with family.

Next, make sure your contracts all state that normal business requests must be scheduled 48 hours in advance. This way, when someone calls and says, “Heather, are you available to work with me on a project on Friday?” on a Wednesday, you can open your calendar and schedule appropriately.

Many clients will try to treat you like an employee–requesting same day if not immediate turn arounds. This is your time to remind them that while you do try to process same day requests, you do require a 48 hour notice for all normal business requests and that rush fees can apply if they need things done sooner.

Now, I’m pretty flexible with most of my clients, because I understand that things DO come up as a surprise now and again. So most of the time I don’t charge a rush fee for doing work the same day or in less than 48 hours from request unless they either are abusing this by constantly wanting things done same day or I’m really that busy that I can’t process their requests same day unless I work until midnight. Those two times, I will actually tell them that if I do their work I will require a rush fee in addition to normal hourly rates.

Always keep an electronic and a paper copy of your calendar. Technology is great, but you never know when it will decide not to function anymore! Even if I know a phone call or project will only take 30 minutes or so, I go ahead and block an hour in my schedule just in case something goes wrong or the client requests changes afterward.

This is a good rule of thumb to keep yourself out of a quandary and it gives you the opportunity to get up and stretch your legs or get some fresh air or a cup of coffee between projects. Believe it or not, these little “breaks” even if just for a minute or two will help keep your mind fresh all day.

Keep moving toward success

What Is Life and Business Coaching?

What is Coaching?
Life coaching is a service that helps clients with life improvement, specifically working toward reaching goals. As income and education levels rise in our society, so does the demand for coaching. People are consistently looking for help in organizing and strategizing ways to reach their goals. People know, if they can reach their goals, they will have an overall better quality of life. Coaching has taken flight and has become an international service. Coaching is not only for individuals. Coaching is often done with couples, in groups, and for businesses. Often times businesses request “lunch and learns.” The company selects a topic, and during the employee’s lunches, a coach coaches them on this particular issue. Some topics include, team building, conflict management and diversity and sensitivity. Coaching services are offered face to face, over the phone and via the internet.

Coaching uses clients’ internal motivation and drive to propel them into reaching their goals. Goals are often centered on career advancement, life improvement, fitness and or weight control, increase sports performance, drug or alcohol rehabilitation, academics, parenting, enhanced relationship satisfaction, and adolescents. A life coach will help you to develop goals and minimize the barriers which block goal attainment. Together you and your life coach will review some techniques that did not work in the past, and revise the action plan in order to move forward. There is very limited focus on the past, and more focus on the here and now and future.

Many people are unaware of the differences between coaching and therapy. Both coaching and therapy focus on assisting people with goal achievement, however coaching places a strong emphasis on the future, where the client plans to go and the steps to get there. Therapy often places more focus than coaching does on the past and examines the psychological issues that have led to the problems. Coaching attempts to move the client forward quickly and works to remove barriers that hinder progress. Coaching also does not involve any diagnosis or treatment of a mental disorder. When selecting a coach, you want to ensure competency. A coach does not have to be certified to coach. Be sure you are reading reviews and checking credentials. Look for a coach who is certified, experienced and or has a degree closely related to the field.

Overall, you will find that coaching is a service that is structured to help you meet your goals. Your drive, determination and motivation will be extracted and together you and your coach will devise a plan that will quickly lead you toward goal attainment. Your coach will assist in organizing the pursuit of your goals and you will activate the plan. Be prepared to achieve!