Building Good Accounting Habits

Here is a new video I just created to help my clients and others build good accounting habits. Please give it a view and a like if you feel. Thanks.

Posted in Uncategorized

Here’s why good accounting makes good sense

This article was written by an acquaintance of mine who also wrote on of my favorite books, The reckoning.

http://www.politico.com/agenda/story/2015/07/greece-owes-less-than-europe-says-000132

In the article, it is proposed that Greece, an entire country about to file bankruptcy, is going to do so largely in part due to failure to properly follow strict standardized accounting rules. If it can happen to Greece, it can probably happen to any of us, right?

Posted in Auditing, professional bookkeeping, The real numbers

How Tax Returns Work

Here is a new video I just created explaining how tax returns work.  I hope you find it helpful.

Posted in Tax season

how to make your phone ring

i’ve been invited by the SBA to talk in September and on the topic of how to make your phone ring.

The irony for me is that the only reason I’m even talking is because I had a problem getting my phone to ring. That started a three-year exploration which has resulted in me being invited to talk about how I solved that very problem.

I did it through giving. Which is interesting because one of the quotes that I’m fond of these days is that no one was ever rewarded for what they took, but only for what they gave.

and this wasn’t my first attempt at getting the phone to ring either. I started doing that in 2002 and it hasn’t stopped since.

Posted in marketing

why two sets of books are essential

in the literal sense, keeping two sets of books is illegal according to the IRS. But the truth to that, and the reality of that are not the same thing.

Your tax reporting forms are set up for the IRS to have the ability to accurately and efficiently calculate how much you owe them.

When you’re looking at your financial information and trying to read the story, trying to read into it what it tells you about your business and what kind of changes you might make, or where you should best focus your attention, you will quickly discover the need to drill down and re-order the categorizations.

Two sets of books to the IRS means you’re lying about the real numbers, but two sets of books to the entrepreneur means something entirely different. It means you’re being proactive, it means you’re being a detective, it means you are doing what you need to do to fine-tune the engine of your business. that is not illegal, it’s smart.

Posted in Uncategorized

4 Hurdles in Business

Hurdle 1.  Make your first dollar.  Until then, your business is just a hobby.

Hurdle 2.  Make enough money to cover your personal bills.  Until then, your business is a business on the side.

Hurdle 3.  Make enough money to have profit left over after your personal bills are paid so you can invest in growth.

Hurdle 4.  Have so much profit left over that you can give some of it away through philanthropy.

 

Most people never get over Hurdle 2, and if they do, Hurdle 3 is a lifelong pursuit.  It doesn’t have to be this way.  Follow these simple steps to achieve greater success.

1. Have clear, written goals

2. Develop inner drive and intrinsic motivation

3. Work hard for several years

Posted in Uncategorized

Document and Information Security

In the mortgage business, it’s extremely important to manage your document security and information security.  According to the GLBA (an act which requires a written policy on security protocols), you can never ever send something with a social security number or account number on it by email.  Too often, this is ignored in the regular world leading to millions of consumers and business owner’s information being insecurely spread throughout the net.  I’ll be talking about this in my monthly  newsletter slated to be sent out today.  If you’re not on the newsletter list, please subscribe.  You can find the newsletter link at the bottom of our home page.

Posted in management, professional bookkeeping

thoroughness and accuracy versus cost

whenever I work with the client, it’s essential to find out whether it is a thorough and accurate job they are looking for, or whatever can be done for a certain price.

Obviously the more thorough and accurate I have to be, the longer it takes and the more that costs. what often happens to someone who needs a very thorough and accurate job also needs it done very inexpensively. Go figure!

Posted in Auditing, Getting caught up, professional bookkeeping

what has little value to you

it’s a basic laws of economics, on the whole, we exchange things of lesser value for things of greater value. When we pay for something which we want, that thing needs to have greater value than the price we pay.

A broken pipe in the middle of winter causes us such great pain that we will pay high repair prices to get it done immediately. But a broken garden hose in the summer doesn’t carry the same emergency concern and therefore is worth a lot less to us

so it stands to reason that whatever the business product or service is that you offer to consumers, whether they are and users or other businesses, you must value the thing that you offer less than the amount of money you asked for.

By the same token anyone who’s willing to pay for your services values this worthless thing you have more than you do. So that begs the question why do I have that other people want it doesn’t have a lot of value to me?

Even if it’s something small, if you have a lot of it and it’s worth nothing to you and it’s worth something to somebody, all you need to do is find those people and make your something cheap enough that they’ll buy it. It’s essentially the same principles a garage sale is in it?

Posted in Uncategorized

quarterly filings coming up

if your quarterly filer with the Department of revenue, and you have about two weeks left before the deadline. Most people calculate this wrong when they do it themselves.
just getting the correct numbers to use for your sales tax, or for your excise tax can be a challenge.

Some businesses use what’s called a point of sale, and this point-of-sale system is where you should be getting the reports to tell you how to file your quarterly returns.

unfortunately most point-of-sale systems aren’t designed specifically for Washington, so you still have to do some manual work to try and get the correct numbers out of your point of sale with which to file your quarterly return.

Again most people do this wrong. Now if you’re in a service-based business it’s a little bit easier cause you should be able to just count the gross deposit into your bank account, but a lot of service businesses buy goods which they either resell or pass on the cost to the customer. This is when you should be looking to see if there’s a way you could do your current job less expensive lead to the client so that you could either charge less and get more business because you’re cheaper, or you can do it for less and make a bigger profit.

filing your quarterly return also tells you how you’re doing in your estimations for the IRS because at this point you should be paying in your self-employment tax deposits for 2015 first quarter as well. Don’t allow your current bookkeeper to ignore this. This is not simply a matter of putting a number in a box and moving onto the next task.

even if you are using QuickBooks payroll, or some other payroll, you still need to make sure that your employment security and labor and industries are being filed and paid correctly as well. This is the time to review the tax rates and make sure the rates in your QuickBooks file are the same as your actual rates with your different state agencies.

Posted in professional bookkeeping, quarterly dor filing, Tax season, The real numbers