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Thinking Of Becoming A Bookkeeper? C2online

Thinking Of Becoming A Bookkeeper?

 

You’ve always had an affinity for numbers and want to translate it into a career path.

 

 

Here are some questions to ask yourself to see if you have the skills and personality traits to be successful.

 

Related Search: How to Spot a Good Bookkeeper?

 

 

1. How are you on the technical side of things?

 

Being tech-savvy is crucial these days—you don’t need to know be a programmer, but being comfortable with technology and its constant advances are essential for the job.

 

2. What’s your attention to detail like?

 

It’s pretty obvious, but being organized and detail-oriented is one of the most important skills a bookkeeper can have. Some people are more organized than others, and in some careers, it’s not as crucial, but when you’re working with numbers, you need a razor sharp memory and the ability to stay on top of things.

 

3. Do you have good critical thinking skills?

 

Helping your company or clients by providing ways to improve processes is an important skill for a bookkeeper. By taking the initiative to point out ways they could save money or time, you’ll provide extra value. If you’re good at seeing how systems or processes can be made better, you’ll be an asset to your employer or clients.

 

Related Search: Bookkeeper Superstars

 

Working as a bookkeeper can be fulfilling and lead to an interesting life-long career. If you enjoy working with numbers and have the needed skills and personality type, you’re likely on the right path.

 


Tips on Bookkeeping Tools C2online



It’s a lot of work running a business and one of the most important, but often-neglected areas, is bookkeeping. It can be overwhelming to keep track of the day-to-day transactions of your business. It’s important to have the proper bookkeeping tools and a system to track everything and understanding what needs to be recorded can make it much easier.


Related Search: Step 1 Bookkeeper Tools

If you are doing your own recording, or have hired a bookkeeper, these are the five categories that need to be accounted for:


1.  Assets

This is what the business owns and can include buildings and equipment--computers, printers, vehicles, machinery, furniture, accounts receivable, inventory and so on. Assets are accounted for on your Balance Sheet.


2. Liabilities

This is what you owe and hasn’t been paid—accounts payable to suppliers and vendors, outstanding loans to banks and for company vehicles, etc. Liabilities are also accounted for on the Balance Sheet.


3. Capital

As a business owner, you may contribute or invest in the business and this becomes part of the Equity section on the Balance Sheet, which is the value of your business belonging to you.


4. Revenue

Money coming into your business, typically from sales of products of services are accounted for on the Income Statement, which some people refer to as the Profit and Loss Statement or P&L.


5. Expenses

Any  money that goes out of your business on a regular basis to keep it operating is categorized as expenses. Expenses can includes wages, rent, office supplies, utility costs, etc. They form part of the Income Statement and are deducted from revenue, resulting in a profit or loss for your business.

Related Search: Step 2 More Bookkeeper Tools

Once you or  your bookkeeper have the daily income and expenses accounted for, you can transfer the data to a monthly accounting system.

Having the proper systems in place will make bookkeeping much simpler and allow you to see quickly how your business is doing financially.

Photo Credit: "adamr" at FreeDigitalPhotos.net


BOOKKEEPER OR ACCOUNTANT C2online

As a small business owner, do you need both? And what’s the difference between the two of them?

 

 

Many people use the terms bookkeeper and accountant interchangeably, but there are significant differences.

 

Accountants typically have a university degree and have majored in accounting. Although a bookkeeper may have a college or university degree, he or she doesn’t have the same level of education in accounting.

 

A bookkeeper records the day-to-day transactions of your business—purchases, sales, receipts and payments. He is responsible for preparing invoices, paying bills and sending out customer statements. All of these needs to be recorded in the appropriate place—the supplier ledger, customer ledger and general ledger.

 

Related Search: What makes a Good Bookkeeper….Good?

 

An accountant takes it to the next step, turning this data into financial reports for your business, including income statements, balance sheets and statements of cash flow.

 

An accountant can also act as an advisor, helping you to understand the financial impact on your business of financial decisions you’ve made in the past and plan to make in the future.

 

Save time by hiring a bookkeeper

 

Running a small business means you’re wearing many different hats, but it’s difficult to manage all of it on your own. Hiring a bookkeeper to manage your daily transactions can mean you can focus on more important, revenue-earning tasks.

 

Related Search: Remove Stress by Hiring a Bookkeeper

 

Reduce your taxes

 

Hiring an accountant, especially at tax time, can save you money over the long-term. He will have the knowledge and experience to understand how to reduce your taxes and provides more specialized advice than a bookkeeper.

 

Related Search: Tax Issues

 

Photo Credit: "adamr" at FreeDigitalPhotos.net


5 Tips for Social Media Success for your Bookkeeping, Accounting or Small Business C2online

We operate in a relationship economy, making it more important than ever for bookkeepers, accountants and small business owners to use social media to reach out to clients and to grow their businesses. As a beginner, it’s easy to feel overwhelmed by all the options. Should you write a blog, build a Facebook page, create a Twitter account, or set up a LinkedIn account? And the list goes on.

To break it down, follow some of the same steps you would for marketing your business.

Related: 5 Steps for Setting Yourself Up for Success - Marketing Your Freelance Bookkeeping Business

1.   Who is your target group?

Understand your audience. If your existing client base or potential clients are not likely to follow you on Twitter, there’s no point in starting to tweet. But if you know they are likely to read your blog posts or follow you on Facebook, those are the tools you should stick with. People join social networks for different reasons. When you know who they are and what they want, you can better serve your online community and help your business grow.

2.   What’s the competition doing?

Do your homework and research similar businesses. Search out the ones you know to be successful and review what they’re doing. If one of your competitors has a Facebook page, connect to it and start reading their posts. You can save time by seeing what appears to be working and what not to do.

3.   Develop a Strategy

Based on the research you’ve done in Steps #1 and 2, you’ve decided which social media networks make sense for your business. As with anything in your business, don’t approach social media without creating a strategy. You’re better off with a strategic and limited social media presence than being everywhere without a plan in place.

If one of your goals is to build and grow your Facebook community, then begin creating content, promotions and posts that will attract your target group. If part of your strategy is to post an ongoing blog, begin researching and creating a library of topics.

4.    Content is key

Related: Stand Out as a Bookkeeper/Accountant/Business Owner with your Communication Skills

We’re all overloaded with information these days. Ensure the content you’re broadcasting is relevant and makes sense to your community, just as you would when presenting financial information to clients or approaching them about a new product or service. If you’re crunched for time, share quality content that’s already out there or hire or approach an expert to create relevant quality content for you. Broadcasting anything just to appear active on social media is likely to lose you followers, not gain their thanks.

Create content that makes your business stand out because it’s helpful and of value to them. If you want to share your thoughts on topics of interest to your audience, such as new tax laws or ways to increase revenue, LinkedIn is a professional network that provides a great avenue to do this. Again, take the time to research and post what is best suited to the social networking tool you’ve chosen.

5.   It’s NOT all about you!

Just as in real life, talking about yourself on social media is not likely to gain you friends. The point of social media participation is to foster conversation and make it easy for your community and your clients to share content. You’ve done the research – continue to listen and observe what is important to them. Yes, you can tell them about your new product or service, but don’t do it all the time.

If you think the time is right for your bookkeeping, accounting or small business to create a social media presence, give it a try. Take it one step at a time—you can always expand at a later date. Follow the steps above and you won’t feel as overwhelmed.

Photo Credit: "smarnad" at FreeDigitalPhotos.net


An Inspirational Story of Connections C2online

Many people think that networking is something that you do, rather than a way that you live. Networking is a life skill, rather than something you do only when you want something. I recently read Dragon - Jim Treliving’s book, Decisions.  His book inspired me on so many levels but it also compelled me to write this article.  In his book Jim said ‘the story of my life is a story of connections, each one bringing me to where I am today.’  Jim Treliving, Decisions: , Jim Treliving Media Ltd, 2012 p.251. “Always leave something on the table.” Jim Treliving, Decisions: , Jim Treliving Media Ltd, 2012 p.129

If you have not learned that most successful entrepreneurs live their life by giving without expectation than you are more likely to not have achieved success.  I learned early in my career that giving to my relationships required effort, the willing to give, share and support.  I also learned that in the process of not expecting anything in return I was rewarded with relationships that became best friends that were once a perfect stranger.

Most people intuitively know that people who are well connected have an advantage. You are far more easily able to tap the wisdom and network of your friend because you have built a trust and a level of respect that has been mutually beneficial.   That perfect stranger, now my best friend also has a life story of connections.

 You also build a story of connections by always leaving something on the table.  That perfect stranger across the table that you have only met for the first time, whether you are buying something or selling something; if you don't let greed drive your motivation and you leave something on the table your story has a foundation to build from … Remember, that perfect stranger also has a life story of connections.

 I wrote this article not to tell you I have a network but to share with you an inspirational story for me and to thank Jim for guiding me on my path to how I define success – a life of a story of connections.  Someone once told me if you measure your success with money, remember ‘you can buy a house but you can’t buy a home ….’ So, thank you Jim.

Lisa Patrick


Bookkeeping for your Personal Finances C2online
Bookkeeping is not just limited to business owners—it’s a good idea to apply the same
bookkeeping principles to your personal finances. Consider yourself the Chief Operating
Officer of your own company (you).

Think of yourself as a business; the value you bring to the organization (your life) and
the profit you make (your salary). You need to spend money on goods and services like
food, shelter, gas, clothes, recreation and so on (raw materials) to keep your business
(you) running. You may participate in continuing studies (investment) so you can
increase your profit (promotions and higher salary). You may donate to the needy or
to your church (corporate social responsibility) and pay taxes and save money for the
future (net profit).

The majority of businesses (people) want to earn more. To achieve that, you can
increase sales (output or responsibility) by investing more (acquire new skills or set up
new income channels) or minimize costs (standard of living and expenses) by cutting
unnecessary assets (luxuries) or processes (hobbies or habits), reducing unprofitable
products or services (outings or habits), or firing incompetent people (destructive friends
or colleagues) so the organization (you) becomes the proverbial tight ship.

These things are all transactions and have to be accounted for if you want your
personal finances and life to be in good shape. Being able to track your income and
expenses allows you to see which resources (your money) of your business (yourself)
are not being maximized or worse, being wasted. You don’t need to be a bookkeeper—
just incorporate these principles into your life. You’ll be surprised how much money,
time and resources are being wasted. Start tracking your life today!


Choosing Business Partners (Part 2 of 2) C2online
How do you choose a partner(s) for your business?


As I wrote in the first installment, setting up a business partnership is like getting
married—you need to carefully choose your partner.

Here’s the second of two installments to help you make the right decision in considering
a business partner(s).

4. Financial Capacity and Shares – every business needs capital to run. Are you
clear how much money you need to get the business up and running? Are you
sure you want to have equal shares? Or do want to retain control by having
majority shares? Is he putting in money as well? It’s also crucial to know if the
partner you are considering is financially stable or is carrying a great deal of
debt. If you are taking on a partner, you need to ensure the partner is able to
be responsible financially and can handle any losses. It’s essential you protect
yourself financially when entering into a partnership.

5. Chemistry – do you have at least one common passion or hobby to tie you
together? Do you both want to make a difference in the world? Or does working
in the outdoors energize you both? Whatever that bond may be, it’s important to
have something in common so you enjoy working together over the long-term.
Trust your intuition—if it is telling you this is not the right person, then don’t enter
into the partnership.

6. Exit Strategy – once you’ve considered everything, it’s important to create an
exit strategy before signing on the dotted line. There may come a point where
the partnership is no longer working or valuable. An exit strategy, which has
been agreed to and signed off on by all parties, should be part of the partnership
agreement.

There are no hard and fast rules in choosing a partner but these are six areas
you should consider. If you are going to be working with someone closely on a
day-to-day business, do your homework first and ensure you’ve chosen the right
person.

How do you choose a partner(s) for your business? (Part 1 of 2) C2online

A business partnership is like a marriage; in both cases, you need to make the right choice in a partner. Once you’ve made that choice, it needs to work or you will both end up unhappy.

Here’s the first of two installments to help you discern whether or not the person you are considering is a perfect fit to be your business partner:

  1. Relationship – is he your friend, your in-law, a close family member, a relative, or just a buddy? Are you willing to risk your relationship with this person in the event that something goes wrong with the business? If you are concerned about risking your relationship with this person, the wise choice is not to enter into a partnership. A personal relationship can cloud many aspects of your decision-making. If you are not 100 percent confident the connection can withstand being in business together and that your decision-making will still be objective, it’s better to safeguard the relationship by not entering into business together.

  2. Expertise – is this person adding value to the business? Carefully consider the reasons you are bringing him on. Partnering with someone who brings something to the table can be valuable for the growth of your business. Partnering with someone for the sake of having a partner can lead to disaster.

  3. Past collaboration– have you worked with this person before? Working successfully together in the past is important, especially if you are working with someone you have a close relationship with. Someone who is fun to socialize with isn’t necessarily as enjoyable to work with. Working on a pilot project together first to determine whether you are a good fit can be valuable, before entering into a partnership.

    Photo Credit: Danilo Rizzuti at FreeDigitalPhotos.net


A Christmas Wish to Santa C2online

THE COMMUNITY of Newtown, western Connecticut, is mourning the loss of 26 people, including 20 children, who were killed during a horrific massacre.  Let us help spread the word on this Santa letter to honor those who passed on that horrible day...

 


Loved Customers are Loyal Customers C2online

One of the main reasons companies succeed is because of high sales volumes; conversely, companies fail because of low sales. A sale takes place when an able and willing customer pays for your product or service. Most businesses make the mistake of thinking they need to find more customers to increase their sales. That’s where they go wrong.

One key to success is to provide a highly satisfying experience to customers so they become repeat customers and then go onto become loyal, committed customers who will spread the word about your company.

How do you do that? The answer is simple: Love. Let’s talk about love and how you can translate it to your customer experience, creating fiercely loyal customers and a highly successful business.

We all know how love happens; you’re attracted to someone, you date, you date more, then you commit, and you develop a long-term relationship in which the two of you are loyal to each other. In many cases, the relationship begins to deteriorate when one or both of you stops caring about the attraction factor, the two of you spend less time together, stop doing nice things for each other, communication begins to break down and so on.

Love happens the same way in business, your customer walks in to your shop, or sees your attractive advertisement and was impressed by your sales presentation (attraction), so they’ve decided to try you (dating), they were satisfied with the experience so they tried you again (dating more), then they finally committed to your product or services and they declare their loyalty by making your business their product or service provider (long-term relationship).  Now it is really up to you if you want this love story to continue to a happy ever after story.

How can you keep your customers committed and loyal to you?

  • continue to make your business attractive (store ambience, good packaging, fresh new products, updated marketing materials),
  • check-in with your customers to ensure their experiences are always positive and satisfactory,
  • ongoing and regular communication with customers to show you care,
  • consistently keep them attracted to you by developing new products they may need; create easy ways to them to reach you and continue to purchase your products and
  • say sorry when you make a mistake and recommit to providing satisfaction in the future.

Continue to captivate your customers and create loyalty, so they commit to you and share your love story with others, leading to more loyal customers and more success for your business.  

Image Credit: fakhar


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