June 24, 2018 · Shirts · (No comments)

By Richard A. Beauchemin, CPA

In today’s society we are constantly being presented with opportunities and suggestions that we can do everything ourselves and that it will save us money. This extends to business as well. Software companies are selling bookkeeping software to run your business, there are web site offering free advice for managing your business, and you can go to hundreds of websites to become incorporated at a fraction of the cost of going to a qualified professional.

Does a small business actually save money by doing these tasks themselves or do they inevitably cost themselves money, time and opportunity. A small business owner has to wear multiple hats including being the president and owner, the sales & marketing team, financial and accounting specialist, administrator, HR guru and technician.

The key to success for any business owner is to identify those tasks that are essential and productive to growing their business and seeking assistance for other tasks. The two most essential functions in any business are sales and operations – finding customers to sell to and providing them with the goods and services you are delivering.

All other functions of a corporation are non-core functions. This is not to say that they are not important. In fact having a good solid financial and accounting system is essential to understanding the performance of your business and then using this information to effectively manage your business and make informed decisions is crucial to your success.

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Most business owners do not have the knowledge, expertise and/or training in these disciplines to perform these functions correctly. If they do have this knowledge and expertise, is their time better spent on growing their business and managing their operations or is it performing bookkeeping and financial administrative tasks?

I submit to you that the value of their time is best spent growing and managing the business. The realty is, when an owner is spending time away from focusing on the core functions of the business he or she has a direct cost that is associated with performing those tasks as well as indirect costs.

The direct costs are quantifiable and can be measured. The cost of an employee or the business owner managing his or her own books, running his payroll, filing sales tax or payroll tax reports, running financial reports, etc. multiplied by his or her hourly wages. If a business owner spends 15 hours per month each month on bookkeeping, accounting or payroll tasks and their time is worth $50 per hour or more then the direct costs are more than $750 per month. If an employee is performing these tasks then all wages including benefits and payroll taxes have to be factored in as well as the time an owner spends managing and training the employee. If the hourly wages for an employee including benefits, equals $25 per hour and a business owners has to spend an additional 2 hours each month managing and training the employee then the direct costs are $475.

The indirect costs are not as transparent or as easily measured but may be even more significant. The indirect costs can include lost sales opportunity, decreased efficiencies and higher expenses in operations, a decrease in customer service or overall quality of services or products being sold, simply due to the business owner having less time to spend managing the operations side of the business.

Indirect cost may even include mistakes due to an insufficient understanding of the subject matter, laws or filing deadlines. It may also include in an inability to access financing due to an improper corporate structure or poor financial reports that lack supporting backup documentation. It has been our experience at Richard A. Beauchemin, CPA/Carolina Accounting & Tax Service, PLLC, as a professional CPA firm that has looked at thousands of owner prepared financial statements that the vast majority of them are incorrect and in many instances have contributed to the failure of a business.

Finally, lawyers, CPAs and other professionals spend hundred of thousands of dollars investing in their education and learning to practice in their respective fields. They then have to pass a rigorous exam showing a proficiency and understanding of the knowledge in there respective fields and have most likely dealt with hundred of clients and thousands of ‘unique’ situations. This experience should not be minimized or dismissed.

When the investment of hiring a professional CPA is matched up against the direct costs as well as the indirect costs of not hiring a professional CPA the decision will be a ‘no brainer.’ A business owner: frees up valuable time to manage their business; the bookkeeping is done correctly so that the owner has accurate timely financials to make informed decision; financials are available to a banker or venture capitalist when financing is required; the business owner stays in compliance with the tax laws.

At the end of the day a CPA firm will end being one of your most inexpensive but most valued members of your team. Not tapping into this knowledge and experience puts the business owner that is not utilizing these services at a disadvantage to their competitors who are making use of these services. The competitors that are utilizing these services and tapping into this experience are saving time, money and capitalizing on opportunities that will contribute directly to increasing both the top line – sales and bottom line – net income.

If you are not currently using a CPA and trying to go it alone, give Richard A. Beauchemin, CPA / Carolina Accounting & Tax Service, PLLC a call or visit our web site www.carolinaaccounting.com and learn how we can put our experience and knowledge to work for you.

About the Author: Richard A. Beauchemin, CPA is owner of Richard A. Beauchemin, CPA/Carolina Accounting & Tax Service, PLLC, a CPA firm in Charlotte, NC. Find out how our company can help you

succeed

by visiting our web site at http://www.carolinaaccounting.com.

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June 17, 2018 · Shirts · (No comments)

Submitted by: Melissa Smithen

There are more than enough reasons why you need to participate in trade show exhibits. In contrary to the notion of most people, it is not only the business owners who would benefit from such events but manufacturers, dealers and even plain customers as well. With just a small amount of money you will pay to the organizers, the fruits will pay off in no time if only you would be able to pull off the stunt effectively. It can make you work for your advantage. Here are quite a few reasons on why you should take into account investing your money in such events.

Launching a new product you can launch your new products and services at the exhibit. In fact, theres no greater place to do it. Your target clients will be there and so are people with them who might have influence on your market. For instance, if you are selling toys for kids, they will most likely be with their parents who have the buying power. It will be a great opportunity to let the world know what the newest product is that they can get from you because they will be there with you. There will no longer be need for mass production of flyers to send them informing about your new offering.

Introduce your starting company if you have just started, you ought to be in an exhibit. This will open the doors of opportunity for you and newly put up business. You can take the advantage of having your target market right there where you need them without spending all your marketing funds. Now that is definitely cost-efficient. The organizers of the exhibit will surely advertise to encourage people to come so it can be of help to you. If you are a dealer, attending into such event will lead to generating network contacts which can be your probable client in the near future.

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Build strong client base each people that will come by to your trade show exhibit rental can be considered your lead, which simply means a prospective client. You can build your own strong customer base if you will make the most out of the little time that they will spend in your booth. This is why it is of paramount importance that the staffs you will place as front liners are good enough. Not only that, they should share the same interest that you have. Otherwise, it is possible that they will pull you downward, diminishing your chance to success.

Build a new business model for business owners, manufacturers and dealers, attending an exhibit will give an idea of building a new business model if they will find it necessary. It is possible that they will branch out and/or come up with an innovative product by merely observing the trend in the current market. They may choose not to set up their booths for a time and just see things from a different perspective. This way, you can both analyze the needs and wants of the market and think how you can address it in the manner that will benefit you.

Have a pulse on where you stand on the market business proprietors, regardless of the field they are in, should at one time or another, make efforts to see where does they stand on the competition. This will make them see how they are doing at the present and how they can cope up with the situation in the event that they find out they are being left behind. This is like a diagnostic test. You will identify the underlying problems and come up with a remedy for it. Depending on your short and long-term goals, you may strive to get yourself in the higher competition.

Increase your sales this is one of the most common benefits of participating into exhibits. But of course, it does not come easy. You have to work on your way to generate your sales. For instance, your exhibit rentals must look good enough in order to draw traffic into your display and your staff may have a chance in getting acquainted with possible clients and encourage them to make purchases from you.

Remember that trade show exhibits are not only advantageous to business owners but to clients as well as they will be able to explore different options.

About the Author: Article by Mark Delacruz of

popandexhibits.com

, a website with the best exhibit displays information on the web.

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