Learn To Make
... with a little help from your accounting system. Informed business decisions lead to sound decision making which leads to long term profits. |
| Stephane Tremblay, CA with KPMG says in reference to the 1990-91 recession, “ ... even in this period of grave difficulty, there is an upside. ... downturns are valuable opportunities ... The winners were companies that ... understood their strategic position and goals, ensured that costs were optimized, understood how they wanted to grow and they communicated that to their people.” canadianbusiness.com/kpmg |
... Now let's go a little deeper into making informed business decisions.
I’m going to start this topic discussing something that you probably think is totally off topic ... but grab your cup of tea and bear with me .... please.
Strategic Management
One of my favorite authors is Michael Gerber of the E-Myth series. If you own a small business today, you should definitely go to the library and sign out one or two of his books.
His premise is that to stay in business, you need to work on your business not in it. It means you have to take a step back. Remove your hat that says you are the technician in your business. Put on your hat that says you are the strategist.
From this vantage point, you can begin making informed business decisions instead of flying from the seat of your pants. That alone is a confidence builder ... knowing you are working towards a rational, quantified goal based on solid information (from your accurate bookkeeping records - of course).
As the strategist, you need to see the pattern, experience the vision, and understand the order to succeed.
YOU need to have more than great technical skills or professional expertise ... you need business management skills ... Ask any writer who has self-published their book and then has to do all their own marketing!
I received this tip from my first economics professor. I was eighteen years old. First time living away from home. Totally overwhelmed by all the new experiences. Each class, this professor would assign reading in this huge (I mean really thick) economics textbook. I honestly could not understand a word of the readings. It was ... w a a a a y ... over my head. His advice was to set aside thirty to sixty minutes every day. Just sit in one of the comfortable reading chairs around the campus and read the text assigned. He assured me that if I sat and just read everyday, eventually I would begin to understand what I was reading ... and I did. Not right away mind you but over the years I got the hang of it! So stick with it even if you don’t understand everything |
Gerber’s major premise is that most small businesses fail because they lack processes and systems for doing business. It's very difficult to make informed business decisions without a system in place to do so.
Systematize your small business to success ...
You can read about one professional bookkeper who designed an easy business filing system for her clients to use by clicking here.
Bookkeeping in a Box shows you the sytem one bookkeeper uses to file business receipts. I purchased the eBook so I could review it and see whether I could recommend it to you. I have to say ... it's very efficient, well thought out. You may want to consider investing in this product if you need help getting your business files organized.
A perfect example how informed business decisions can lead you straight down the path of success! I just wish I had thought of the idea.
| Stephen L. Nelson, CPA and multi-book author says, “ Sure, you didn't go into business to do bookkeeping. But you need to manage your money wisely if you want to make a profit.” |
To strategize, you need to have a fairly good idea of the end result you want (otherwise how will you know if you have ever achieved what you set out to do?); and you need to figure out how to quantify your desired outcome.
Tie your Budget and Spending to your Business Goals and Business Plan. You've got a budget and a plan .... right?
Your accounting system can help. Take the time to set up your system to track your progress towards the goals you have quantified. Informed business decisions ultimately puts more money in your pocket in the long term.
Warm up your tea and let's keep going, shall we ...
The Plan - Links
Go to Next Page of The Plan - Setup Your System to Meet Your Needs
Return to Top of The Plan - Informed Business Decisions
Go to the The Plan - Monthly Financial Review
Go to The Training - Reading Financial Statements
Return to "The Plan" Section - A Financial Plan is Essential
Return to Home Page - Knowledge is Money in Your Pocket
New! Comments
Have your say about what you just read! Leave me a comment in the box below.
SIMPLE EASY
Office Filing System
Learn How to Organize Files
In Under 30 Minutes
$47
You can delegate responsibility but you can't abdicate it!
2 Bookkeeping Tests
Prescreening Tool or Study Aid
350 Questions
includes answer key,
Bookkeeping Basics Webcast
and more
$49 USD
LIFETIME ACCESS
Click on exam booklet to order
Click here for more information
How to Use This Exam:
(1) As part of your interview process when hiring a bookkeeper.
(2) To self assess your bookkeeping skills.
(3) As a practise test before writing your bookkeeping certification exam.
Learn How to Turn
Your Piles of Paper
Into an Organized
Electronic System
Click on the picture above
for easy to understand tips and strategies on how to go paperless.
Free eReport When You
Subscribe To My Newsletter
The Bookkeeper's Notes
Brian Tracy's
Click here to receive Brian Tracy's Free Goal Setting Success Guide!
(Listed Under Websites NOT Under Local Business. This website is not associated with any business operating in Bonnyville Alberta.)
From the Mail Bag
Visitor Comments
Thanks for the information. It is nice to see there is an online site where I can go get answers to my bookkeeping questions. It was really a stroke of luck I came across this site. I googled my bookkeeping question to see if I could get an answer, a shot in the dark, and bookkeeping-essentials was one of the results listed. I looked over some other sites but none were as flexible as this site. I got a quick response and I will be using this site in the future. Thanks again.
Bayside, NY, United States
I love your site...its very homey!!! It's like reading/talking to a friend!! Thanks!!
Kim, Jackson, MS United States
Your website is positively BRILLIANT! I don't care at all for the numbers side of my business, but you've made it interesting, fun, comfortable--downright enjoyable! Bite-sized WELL WRITTEN bits walking me through fundamentals, encouraging me, explaining.(Note: "well written" covers everything from "interesting" to "intelligent." The reader doesn't stumble over elementary grammar errors, lots of typos, etc.) I've only just discovered this lovely gold mine!
Cherie, U.S.
I have just come across your site and it's great...thank you so much for the time it must take you to compile the data and information. I have no accountancy or book keeping knowledge and am currently trying to learn QuickBooks via YouTube. (lol) There must be an easier way as I don't have the time or finances, what with starting a new business, to attend a course at college or similar.
Debbie, Vancouver, BC Canada
As a novice at the bookkeeping game, this site has become my go to site for research. Thank you for the great resource. I do my data entry one or twice a year (very low volume) and I find I need retraining on Quickbooks for things like depreciation/CCA.
Den, St. Albert, AB Canada
A More Than FANTASTIC site! So often I've thought about putting something together like your site, but didn't have the time. Googling information about Supplies or Tools over under $500.00 was the most useful Google search I've ever done because of discovering your site. Way to go and THANKS VERY MUCH. PS.... Also loved it that you put the Tax chart for GST HST back to 1997; I spent hours trying to get this information from the CRA website. I've not had time to look at your whole site, but I will be refering to it often I'm sure and will mention anything I think is missing, should I not discover information as I might be looking for it. Thanks, Again
Leona, Sicamous, BC Canada
Thank you for your comprehensive reply to my question. I really appreciate the time you took to explain it to me.
Connie, Canada
This is an absolutely awesome site! I am not lying. I went to Chapters to try to find something just like this and they did not have what I was looking for - which your site does ... which is good definitions and explanations. I am going to book mark this page if that's okay. ... Great job and thank you. I will definitely use this resource.
PK Lethbridge, Alberta
My biggest problem in doing my books is keeping debits & credits straight in liability and equity accounts. I really liked the cheat sheet. (I think that will help me keep the debits and credits straight.)
Lisa, Williston, USA
Lake you're awesome in every way. I have had some insight about how to properly classify some accounts.
Karim, Calgary, Alberta
Thank you so much for this website. I am interviewing for my first bookkeeping position in over 10 years--and my first in Canada. I have AAS degrees in Accounting and Business Admin from the US but have never worked in "my field" since immigrating in 2000. Your website makes me feel more confident I can actually do the job I am interviewing for. So far, I have been refreshing my knowledge and preparing for a job interview. I've bookmarked the site for WHEN I get the job!
Robin, Toronto, ON
I love your website. Just love it.
Carolann
CPB Bookkeeping, Inc.
"The Organizer"
Lake Worth, FL
I posted a question on Accumulated Surplus and you asked me to comment on your comments. I really appreciated reading what you posted and it did help. Especially the part of talking to the accountant. That really makes sense. I find more and more that I interact with the accountants to keep on learning. Love Love Love your website. Just discovered it about 3 weeks ago and have been on it lots since then.
Jan
Red Deer, Alberta
Wow. I'm so thankful to have stumbled across your site, with the assistance of Google. :) I love your style of writing, your approach, and your message. Thank you for your time and efforts. In a nutshell, your light humor and simple approach is refreshing and uplifting.
Kathy, Hillsdale, United States
Your site is great by the way. I just came across it.
Trish, Canada
Thanks for responding so quickly ... I really appreciate all the forum help ... I do Love the forum and have looked through other questions on it and feel it will greatly help in the future. Your site is fantastic and I will recommend it to anyone asking about bookkeeping help.
Cindy, Calgary, Canada
It (your site) is very helpful and thank you for your tips and advice. I am so glad I found your site.
Lee, Calgary, Alberta
Thank you so much for your hard work on your site ... I find I learn quicker and easier with you than I did with courses. Your site has helped my knowledge, learning new things and with the explanation of terms/items. Keep up the good "BookWORK"!
Naomi, Balance Your Books, Squamish, B.C.
This website has been very helpful. It's been too many years since school and I'm a bit rusty.
Sue, Medicine Hat, Alberta
I just found this site tonight. It's going to help me a lot as I learn how to use my Quickbooks more fully (I've only used it for payroll). Don't ask me how I've managed to keep the books this long -5 years- without knowing much more than how to balance a checkbook. I'm getting some help from a professional now, but your site will keep my pro costs down. Thank you. I will definitely donate once I begin to use it with my QuickBooks. It's [your site] easier to understand than Help in QuickBooks. QuickBooks assumes I know bookkeeping concepts. It [your site] appears to be very thorough, though I've only scratched the surface of what I can learn. I took an online bookkeeping class a couple of years ago, but this site has direct application to quickbooks and it's a searchable site!
Ruth, Dos Palos, CA USA
Thank you for providing valuable information regarding home business taxes on this website.
U.C., Toronto, Canada
I started my own bookkeeping business two years ago and enjoy your site. I literally grab my cup of coffee and look around for hours. :D It's a wonderful site with loads of information and I'm all about learning from my peers who might have the answers to some of the questions I may have. Keep up the good work. :)
Tania, TaniasBookkeeping.org
Taking the worry away
Belledune, New Brunswick
BTW, did you say Bookkeeping? Cuz I fell asleep... just kidding!
Dr. Julia
www.advice-with-dr-julia.com
(I love her humour!)
Absolutely a great site! I have often dreamed of having a similar site but figured I might have to wait until I retire to get the time. I have bookmarked this site and will return again.
C.H.
Alwyn Enterprises
Scarborough , Ontario
You have a wonderful website. Thank you so much for letting me know you have one now. [It] is really well done and very, very informative. Also really charming.
R.P.
Reliable Recordkeeping
Toronto, Ontario
I'm enjoying reading your blog! Thought I'd drop you a quick note of encouragement.
Loralee, Red2Black.ca
QuickBooks "one
on one" coaching
Edmonton, Alberta
This is a marvelous site and one that I would like to use as the basis for training bookkeepers. I am a CPA here in the states and am in the process of building a what will hopefully become a substantial bookkeeping business (not a dark wood & gold lettered CPA firm). I want to serve the small business owner with the day to day service they need. You have obviously put in an enormous amount of time and effort here (there is no doubt there) and provide a wealth of fantastic information.
R. Keith Pierce, CPA, P.A.
I'll Sweat The Small Stuff For You - JaxTaxPro.com
Jacksonville, Florida