Kenneth Boyd's Blog, page 50
February 24, 2019
3 Things To Understand To Boost Your Wealth
If you are hoping to try and make as much money as possible, you are not alone.
Building wealth can improve your quality of life, and give you the freedom to spend time on hobbies or projects you enjoy. You can build a savings account to handle emergencies, carry health insurance to address medical concerns, and save for retirement.
Here are some investments options that you can consider to increase your wealth:
#1- Stock Market
The stock market can be a great way to build wealth over time, but mistakes can reduce your rate of return. Here are the most common investment mistakes made by most stock market investors
If you were an investor in the first few weeks of February of 2018, you probably want to visit a place like Anger Room.
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It’s a real thing.
The huge swings in stock market performance may have you wondering if you’ve made some huge mistakes, and that’s normal when investing tensions are running high. To assess whether or not you’re on track, here’s my list of the most common mistakes investors make.
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Forgetting your investing goal (or not having one at all)
For starters, go back to the reason you started investing in the first place. Specifically, how much money were you trying to accumulate, and for what purpose? How long were you planning to invest?
Let’s assume, for example, that your investing now in a 401(k) retirement account, and that you’re 25 years from retirement. You’ll willing to take a moderate amount of risk. If your portfolio is up or down 10% in one year, you can live with it. A 25% change, however, makes your palms sweaty. You invested in mutual funds, with 70% in stock and 30% bonds.
That’s the plan- and that’s where you start.
Unrealistic expectations
As of 1/22/18, the Dow Jones Industrial Average (DJIA) closed at an insane 26,214.60, up 32.4% in the last 12 months. The DJIA is an index of 30 large corporate stocks. A broader index, the Standard and Poor’s (S&P) 500, closed at 2,832.97 on 1/22, and this is an index of 500 large stocks- a bigger basket of stocks. The S&P 500 is up 24.7% over the last 12 months.
Crazy, record-setting performance… and it’s stressful to consider the fact that every bull market ends. Expecting a 25%-plus annual return is simply not realistic.
It may seem like everyone around you is getting rich- but that’s normal. In every bull market I’ve seen since the ’87 market crash, most of us think that everyone else is making a pile of money.
But there’s a trade-off. The people who are really killing it in the markets these days are taking more risk (Bitcoin, anyone?). They either have larger percentage of their total portfolios in stock (vs. bond or cash), and they’re buying riskier stocks- stocks that have less of a performance history of earnings and sales.
You need to keep your head and realize:
Your goals haven’t changed
Bull markets, historically, come to and end at some point
When (not if) the bull market ends, you may incur some losses in the short term
But you can get through it.
So, what’s a normal return?
So, what’s a “normal return” on stocks, if such a number exists? Seeking Alpha (a site I highly recommend) has some great stats on historical returns for the S&P 500 from 1928 to 2015:
Over 88 years, the S&P 500 went up 64 years and went down 24 years.
The worst return was -43.84% in 1931 (ouch) .The best return was 52.56% in 1954.
The mean return (think average) was 4122%
So, what’s normal? Seeking Alpha says 11%, and other stats suggest 8-10% over a 70-80 year period. The point is that 24-32% isn’t normal.
Accept the fact that, over the long-run, you’re not going to earn more than the historical “normal” return.
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Risk assessment
Most investors do not honestly assess risk tolerance. Note that word- honestly. To assess your risk tolerance, ask yourself this question: If your portfolio’s value went up or down 10% in one year, is that something you could live with? How about 20%?
You get the idea.
Use that knowledge to select your investments. If want a stock mutual fund with moderate risk, read the fund’s investment objective and check the fund’s historical performance. Specifically, check out the fund’s beta, which measures a fund’s volatility in comparison with the broad stock market, such as the Standard and Poor’s (S&P) 500.
Succeeding once is random
Ask that guy who just hit 21 playing his first hand of blackjack at a casino. He may think he’s a genius, but the law of large numbers removes randomness. Over time, the blackjack player’s results will shift back to a normal level. In the same way, great investors succeed over the long term- when returns are no longer random.
Final thoughts
Have an investment plan, and avoid emotional decisions (particularly sell decisions)
Invest in companies that consistently make money- and hold those stocks
Timing the market doesn’t work over the long-haul, so don’t try it
Diversify your portfolio into stocks and bonds that perform differently in up and down markets. That approach will help you average out your total returns over time.
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#2- The Forex
The foreign exchange (Forex) offers the potential for large rewards, and can expose you to a high level of risk.
In order to succeed at Forex, you must understand many of the intricacies, such as the Canadian dollar forecast or various economic forecasts and other currency-related research.
#3- Saving
Being able to save money is a key factor that allows you to boost your wealth. Create a personal budget, cut expenses, and fund an account to pay for emergencies, such as a car repair.
Think Long Term
Finally, building wealth requires patience, and you have to create a plan and implement your plan over years and possibly decades. With self-discipline, you can build wealth and have more peace of mind.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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6 Steps to Become a Freelancer
Is freelancing the right career path for you?
If your answer is yes, what are the rights steps to start a career as a freelancer?
Read on.
#1- The Benefits
Freelancing can be an ideal working situation for many people. Here’s why:
Schedule: Freelancing allows you to control when you work, and offers flexibility in your work day.
Specialization: A freelancer can choose the type of work they prefer, which allows you to build a specialty. Perhaps more important, you have the option of turning down work that doesn’t appeal to you, or isn’t a fit with your skill set.
Collaboration: You can decide the companies that you prefer to work for, and the people you collaborate with.
But when the majority of us enter the working world and spend most of our working lives in employed positions, making the jump to freelancing can see us land in pretty unfamiliar territories.
Not to worry! No matter how new you might be to freelancing, there are a few basics that you can familiarise yourself with that will make your life a whole lot easier. Here are a few to bear in mind!
#2- Contracts
Most freelancers work with clients using contracts, and you need to be comfortable with this process.
When you are employed, you sign a contract at the beginning of your employment and don’t really have to consider work related contracts again. This one document ensures that you will receive pay at an agreed rate for whatever work you carry out for the company.
Freelancers, however, are typically engaged with multiple clients over shorter periods of time. Contracts are just as important in this environment, and you must get clients to sign contracts to ensure that you are paid for the work you complete.
Information within the contract should include the client’s expectations, your working hours, the rate of pay, and an estimated date for finishing the work. Using contracts clearly states the expectations and responsibilities for both you and your clients.
If you manage a business and want to increase your productivity, I highly recommend QuickBooks accounting software. Read this article to decide if you need the desktop or online version of the software.
Use online accounting software to dramatically increase your company productivity. Find out more here: QuickBooks Online Edition – Free Trial
#3- Invoicing
You must invoice clients as soon as you finish work, or quickly after the invoicing dates stated in a contract.
When you work on a freelance basis, you’re also going to have to submit invoices to clients once the work is complete. This is essentially a document outlining the costs of your work, with a final sum that is due to you.
To make things as simple as possible (after all, freelancers don’t tend to have a whole lot of time on their hands for admin work), use an online invoice generator. This will create an invoice on your behalf with all of the necessary details to get paid properly.
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#4- Maintaining Communication
It may be tempting to consult clients once, then head off and complete the job in full. But maintaining communication with clients throughout a project is extremely important. It ensures that you get the work done based on the customer’s preferences and timeline, rather than coming back with a completed project and having to revise work repeatedly later down the line.
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#5- Build and Market Your Brand
Use a website and social media to promote what you do, and consistently market your skill set to find new clients.
This step can be challenging, because you must find time to market yourself after working on billable projects for clients. It’s tough, but successful freelancers continually market themselves through blogging, podcasts, speaking, and other marketing approaches.
#6- The Payoff
Freelancing allows you to have more control over your schedule, and to spend more time doing work that you enjoy. You may work more hours than you previously spent as an employee, but many freelancers feel that the pros and outweigh the cons, and are happier in the long run.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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February 3, 2019
QuickBooks Online vs. Desktop: Which Is Right for You?
As a contributing writer for QuickBooks, I think about the problems that many company owners face, and how to overcome them to grow the business. I’m a big proponent of using technology to work efficiently, particularly accounting software programs.
But should you use QuickBooks Desktop or the Online version?
Read on to decide which version is best for your needs.
The online option is available on both Mac and PC, but it does require an Internet connection to get access. However, since web access is almost everywhere, the online product can be a useful alternative. In fact, most new QuickBooks users are choosing the online product.
Is Accounting Software Important?
No business can grow profitably without using accounting software.
Now, that a pretty strong statement, but the more I read about and write on business topics, the more I believe this statement.
QuickBooks Online Edition – Free Trial
To explain the point, I wrote this article for QuickBooks on why no business should use Excel to account for payroll. Excel documents can get misfiled, and you may end up using the wrong version. If you make an input error, or you don’t link spreadsheet tabs correctly, your payroll calculations will be incorrect. Finally, you may lose files due to a system crash, or by not saving data often enough as you work.
If you’re using Excel documents and spending two full days to process payroll for 40 employees, how can you grow to 200 employees?
Invest the time and effort to move your payroll processing- and all of your accounting- into a software package. Grow your business and control your time.
Why Use Desktop?
While a majority of QuickBooks users are migrating on the online version, there are a few reasons to use the desktop software.
If you’re a retailer and carry inventory, the desktop version offers more features related to inventory, bill of materials, and cost of sales reporting. Desktop also offers some additional features related to job costing. If you’re in a business that requires you to provide job estimates to customers, for example, you need a job cost accounting process.
A service-based business, such as a doctor, lawyer, therapist, or consultant, can use the online version and the superior capabilities.
Keep in mind that, if the online version does not offer some of the features you need, you can add hundreds of apps to the online software to meet you accounting requirements. If, for example, you want to flexibility of the online version and you must account for inventory, you may be able to find an app to address that need.
Data Processing
As I mentioned above, you need tools to increase productivity so that you can grow your business, and QuickBooks is a great tool to work efficiently. Consider these data processing features:
Statement downloads: The online software can download your bank and credit card statements automatically. After you set up expense and revenue categories, the software can assign each transaction to the desired accounts. This automated process saves time, and makes your bank reconciliation process much easier.
Costs: The desktop version of QuickBooks operates on your PC or Mac, and not on the cloud. As a result, desktop users must pay for many services that are free for online users. If you use desktop, you must pay to download bank statement activity, and to access cloud storage on QuickBooks.
Complex journal entries: The online version lets you post journal entries with multiple accounts payable or accounts receivable line items. Rather than separate a transaction into multiple journal entries, the online software lets you post one large entry, which saves time.
Use the online version to work productively from anywhere.
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Management
As your business grows, you may have multiple people in your company who need access to QuickBooks and use the app to input data, or to generate reports. Here are some features that allow you to manage your QuickBooks users:
Activity log: The online version provides an activity log, which lists transactions posted by user, and other reports. The software will also report when users log in and out of the system.
End notes: QuickBooks online allows a user to add end notes to a particular report, which can be used to remind or educate users about data in the report.
Professional report pack: Every business owner has a particular set of reports that are the most useful for management. A retailer, for example, may be most concerned about inventory levels, and keeping sufficient inventory on hand for customers. The online software allows you to create a set of reports that you can generate easily.
QuickBooks online can help you become a better and more efficient manager.
Remote and Mobile Use
Using the online option can increase your productivity, because you can access on work on QuickBooks from anywhere, including from your mobile device. If you’re waiting for a client meeting, for example, you can use the time to invoice a customer, or work on your bank reconciliation.
The online software gives you the freedom to plan your work, regardless of location. Here are some examples:
Scan receipts: If you have a receipt that you need to file as support for an accounting transaction, you can take a photo with your mobile device, and attach the receipt photo to a transaction using the mobile app.
Invoicing: QuickBooks online lets you automatically schedule and send invoices. This app saves you time, and allows you to get invoices out faster- and speed up cash collections.
Easier monitoring / follow up: If you need to find information or take action, you don’t have to wait until you get to your desk. If, for example, you need to email a client regarding an outstanding invoice, you can do it from your laptop or mobile device.
Working with an accountant: You can set up the online software so that your accountant can access your books remotely. This is particularly useful, because the accountant can make corrections and ask questions quickly, which speeds up the accounting process.
Linking to apps: The online software allows you to link to over 300 cloud-based apps.
Perhaps most important, QuickBooks Online resides on the cloud, so you don’t have to download software to your PC or Mac. Your data can be backed up automatically on the cloud, so that you reduce the risk of losing data.
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Making the Switch
If you want to move from QuickBooks desktop to the online version, you can get plenty of help to make the process happen. Here are some important points to consider:
Existing desktop data: When you move to the online version, QuickBooks copies your existing desktop data and moves it into the online product, so your original data is not changed.
Software: The online version provides automated software upgrades. The desktop version, on the other hand, requires users to install new upgrades. If you use multiple desktop machines, each PC or Mac will need the upgrade.
I’m a big fan of QuickBooks Online, and I think this software is a great tool to increase sales and profits.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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January 31, 2019
3 Financial Misconceptions That Destroy Your Wealth Potential
There is a universal truth in the world of finances: Everyone has the potential to maximize their wealth – and similarly to lose it all as well.
Admittedly, while it fair to say that those who are born with the proverbial silver spoon in the mouth might have an easier job getting to the money, it doesn’t mean that they are strategically equipped to make the most of their earnings and grow their income. Your wealth potential connects to the mindset and money habits you develop in life.
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As you are about to discover, the ability to generate wealth is not connected to the financial situation you were born in, but, instead, it has everything to do with the way you think about money. Someone who comes from a modest background but understands the financial tips enjoys a broader wealth potential than someone who might have more in their bank account, but fails to grasp the complexity of financial strategy.
You can train yourself to grow your potential.
Focus on erasing these costly misconceptions from your economic mindset first:
Save What Is Left
Of course, everybody knows that savings are indispensable in modern life.
However, there is more than one way to organize your saving strategy. Indeed, savings need to be a planned activity in your budget. Planning ahead means that you can treat your saving funds like other expenses, alongside your utility bills and grocery shopping. Why does it matter? Because saving should never be an afterthought but a scheduled activity.
Setting up an automatic payment towards your saving account, for instance, can ensure you build the necessary capital for emergency costs. What this means is that you can secure a regular amount of money every month, which reduces the risk of taking on debt to tackle unexpected situations.
Action Steps To Consider
Create a budget, even if that budget is simply on notebook paper.
Separate your expenses between fixed and variable, and take a hard look at your variable spending.
Take steps to cut your variable expenses each month and put the amount you save into a separate savings account.
Fund a Business With Debt?
The idea of taking on a loan when your financial situation is not optimal can be daunting. However, you need to think of the long-term consequences of a loan. For instance, you can utilize a quick solution such as https://www.cashsmart.net/ to maximize your income when you’re in the process of setting your solo business or side hustle activity.
Indeed, a side hustle can let you create a regular source of revenues, which means that your loan is an investment in your future potential. The principle is simple: If the loan lets you increase your earning potential, you may be better off borrowing to set up an income stream in your new business.
High-Risk Tolerance
When it comes to investment, enthusiastic beginners can make a lot of money if they’re ready to take high risks.
However, with high risks comes the danger of losing it all — or even more than you had. As a result, most people stay away from an investment portfolio, for fear that their low-risk tolerance may not be profitable.
In reality, you can make a profit even by taking minimal risks, as seen here: https://www.goodfinancialcents.com/low-risk-investments-options-high-yield/. Something as simple as credit card rewards and bank bonuses can earn you free cash, for instance.
To understand stock investing risk, consider an individual stock or mutual fund’s beta, which measures a fund’s volatility in comparison with the broad stock market, such as the Standard and Poor’s (S&P) 500.
Unlocking your wealth potential is about looking past your financial situation to spend and save smartly. Always plan your strategy ahead.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
The post 3 Financial Misconceptions That Destroy Your Wealth Potential appeared first on Accounting Accidentally.
Important Legal Protections For Businesses
Running a business is a complicated endeavor, and managing a business presents a variety of risks.
There are so many different things that you have to keep in mind. From connecting with the right demographics, to understanding how technology changes your business, keeping up with everything can be overwhelming.
However, there’s one thing that you need to make sure that you’re paying as close attention to as possible: the law. There are plenty of ways in which your business can fall into legal hot water, and it’s essential that you’re aware of those issues, so that you can avoid them.
With that in mind, here are some ways to make sure that you’re keeping your business on the right side of the law.
What About Safety?
One of the biggest legal issues that a lot of smaller businesses run into is that of safety.
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Health and safety might not be the most interesting things in the world, but they are important and you can’t afford to ignore them. The truth is that if something happens to an employee and you didn’t have the right procedures in place to prevent it, you’re the one who’s going to be liable for it.
Here are some practical tips:
Workers’ compensation insurance: Most states require firms to carry workers’ compensation insurance, which covers the medical costs and income payments to employees who are injured on the job. Check with an insurance specialist, so that you pay the correct amount of insurance premiums.
Safety manager: Most businesses have a set of procedures in place to protect the health and safety of workers. However, if your work in an industry that presents more risk, hire a safety manager. Construction companies, for example, hire experts to put safety policies in place, and to make sure that the procedures are enforced on each job site. An effective safety manager can sharply reduce your risk of employee injuries.
Putting the right health and safety procedures in place is far cheaper and easier than dealing with someone like Hadley Law Firm, if your employees end up getting hurt. It’s a simple step that can make a huge difference.
Taxes and Regulation
These issues can trip up a business, not because they’re trying to get around any laws, but simply because they’re not aware of what they’re doing. Things like your businesses accounts and finances can be incredibly complicated, and mistakes that you make can have serious legal ramifications. Here are some common examples:
Tax payments: Businesses may be required to collect sales tax on sales transactions, and to withhold federal and state income taxes from employee payroll. These amounts must be reported and sent to each taxing authority. Companies in financial trouble sometimes use the tax collections to fund business operations, and face fees and penalties by not sending the funds promptly.
Maintaining certifications: A large percentage of professions now require workers to maintain a professional license. Keeping the license active often requires the doctor, lawyer or accountant to take continuing education classes. Some busy professionals don’t maintain their licenses, which creates potential legal liability.
Make sure that you’re putting your finances in the hands of someone who knows what they’re doing. Having an accountant isn’t just going to make your life easier, it’s going to offer an extra layer of protection to your business.
Get the Right Advice
Of course, these aren’t the only ways in which you could end up in legal hot water. The best thing that you can possibly do is to make sure that you’re getting the right advice.
Connect with a professional legal advisor can help you understand which potential legal pitfalls your business must face, and what you can do to avoid them. Your business is unique, so it helps to get unique guidance on how to deal with these issues.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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January 29, 2019
Four Tips To Protect Your Business
Running a business can pose many challenges along the way, and it can open itself up to a lot of vulnerability if not protected well. Here are four ways to protect your business, so that you can focus on running it successfully.
Do You Need an Attorney?
It’s something that you should think about getting right from the creation of your business, especially if you’re selling a product or service that might cause controversy or is similar to others out there.
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You never know what might be sprung on you and it could be something you have no knowledge of. You can hire external support like Wetzel Law Firm or hire an internal legal team. It’ll vary, depending on your business, but it’s always worth seeking legal advice, even if you can’t afford to spend a lot of money on new staff or a contract with a firm.
You also need to carefully file and store all company-related records on the cloud, so that they can be accessed if you face a legal matter.
Keeping Assets Separated
A lot of businesses succeed and fail every day, and some even go bankrupt. As running a business can be quite volatile, it’s important you keep yourself separate from the business.
If you own your business, consider keeping ownership in a trust, rather than in your personal name. The reason is because if you are sued, your personal assets will be threatened, as well as that of your business. If a trust holds your business, the company may be considered a separate legal entity, and your personal assets may be protected.
Streamline
You should always be cautious about the money you spend and what comes in and out of the business.
Streamlining your finances might be a good idea, so that you can keep it all in one place. New businesses will often have to spend a lot of money, and that doesn’t necessarily mean that they’ll make any profit. It’s useful to keep your invoicing, expenses, etc all in one place so that you or your accountant can keep track of what’s going on.
Be Cautious
With anything in life nowadays, what you say and do whether it’s in person or on the internet, can either have a positive or negative impact.
When you run a business, you need to remember that what you say and do can reflect directly on the organization. It’s always good to get a second opinion on campaigns or projects that you’re running or products that you’re selling. Review everything you do and say with a fine comb and always be wary of the potential backlash. It’s important that your colleagues all have the same caution.
Protect Yourself
Operating a business can have it’s high, and it’s lows, but if you take these steps to protect your business, you can spend less time worrying, and more time on the opportunities that come along for the company.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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Stress-Free Personal Finance Management
Have you made a resolution to get your finances in order, or are you working towards saving or investment goals?
It’s not always easy to manage your finances, but if you follow these golden rules, you should find life a lot less stressful.
What About a Budget?
There’s nothing more crucial than budgeting.
If you don’t already swear by a monthly budget, now is the time to devote a small amount of time to getting a budget up and running. Budgeting enables you to see how much you spend per month, how much you earn, and how much you could potentially save.
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With a budget, you can monitor spending, reduce the risk of getting into debt, and give yourself a much clearer picture of where you are in terms of your financial goals. Many people now use apps or spreadsheets to budget, but there’s nothing wrong with using old-school techniques like writing expenses down on a pad and paper.
Make sure you include every outgoing payment, and update your budget as you go to ensure that it is accurate.
Action Steps To Consider
Create a budget, even if that budget is simply on notebook paper.
Separate your expenses between fixed and variable, and take a hard look at your variable spending.
Take steps to cut your variable expenses each month
Consider using a budgeting app to monitor your spending
Set up a separate bank account to discipline yourself to save.
Save 5% of your monthly gross income
Understanding Tax Obligations
Many people pay tax through withholdings on salary, but if you’re required to file a tax return and pay your taxes on an annual basis, you need to be aware of deadlines, and ensure you have enough money set aside to cover the bill.
Calculate how much tax you have to pay in advance, and figure out a saving plan. If you do encounter problems with tax, it’s best to act quickly, rather than bury your head and hope for the best.
If you can’t pay all your tax, for example, don’t hesitate to get legal help with your tax bill. An experienced attorney will be able to talk you through the problems and find a solution. Working out tax bills and payments isn’t always a walk in the park, and this is why it’s so beneficial to ensure your accounts are in order.
If you don’t understand the tax system, or you’re unsure how much tax you owe, seek advice.
Tracking Device
Have you ever looked at your bank balance and seen a figure that was much lower than anticipated? In this day and age, when we have multiple direct debits, and we can make instant payments without getting cash out, it can be tough to keep up with movements in our accounts.
Tracking spending is essential. Use apps and Internet banking to check your balance on a daily basis, and make sure you know how much money you’ve got available.
What About Debt?
If you’ve got debts you’d like to pay off, use your budget to work out how much you can pay off each month. Tackle priority debts, for example, final demand bills and credit cards with high interest rates, first.
Make the Effort
If your financial situation is stressing you out, hopefully, you can make the effort to get back on track.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
Image:
Hundred Dollar Bills
Pictures of Money (CC By 2.0)
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January 24, 2019
Boosting Office Productivity
Business productivity can be the difference between success and failure.
Owners in any business must focus on productivity, and to constantly find ways to work smarter.
So what’s the payoff?
You produce more sales and profit with a smaller investment in assets (technology, fixed assets, staff members). In addition, productive companies are prepared for growth, because they can complete more tasks, such as billing customers and shipping products, in less time.
Here’s a look at some tips to boost company productivity:
What About Technology?
Technology can help with productivity levels, but implementing a new tech tool requires a time investment. As a result, it’s critically important to research technology, and get proper training before putting it to use.
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Enterprise software can connect a number of different systems, such as inventory, billing, and accounting. This link provides some good examples: https://www.templafy.com/enterprise-document-management/.
Finding Motivation
Work is difficult.
Your staff faces a number of challenges each day, and serving customers has to be a priority.
Motivation is a key to ensuring that people remain productive, and you will need to spend some time learning how to keep your employees as motivated as possible, particularly during periods of difficulty.
You can also improve motivation levels by having a logical reward system in place, so that people are rewarded for doing good work, and for working productively.
The Work Environment
The work space you provide also has a big impact on productivity, particularly when staff members must work longer hours. Consider office design, chairs and seating arrangements, and the ability to spend some time working remotely.
The light levels in the office actually have a surprisingly strong impact on productivity, and it is something you should research, in order to operate efficiently.
You want the largest amount of natural light possible, so that people feel less anxious and less prone to headaches. But: a little artificial light is sometimes necessary too.
Why an HR Department Is Critical
Productive businesses need effective managers.
No matter how professional or independent your staff is, they’re going to need some sort of management. Now, you may think that you can do this yourself at first, but if you want to do an effective job of staff management, you’ll end up dedicating all of your time to the cause.
This means that you will fall behind in other areas that help to push your business forward (such as product development and networking) and your profits will start to dwindle as a result.
Instead, you should consider establishing an HR department. This could be in-house, or you could make use of HR outsourcing. In either case, HR is dedicated to ensuring that your employees are well taken care of.
Part of their role is to track holiday leave (ensuring that all of your employees receive their rightful paid holidays), as well as requesting and receiving doctor’s notes if an employee is deemed unfit to work, allowing them to be paid their statutory sick pay.
Another vital aspect of any HR department’s responsibilities is to resolve any conflict that arises in the workplace. When people are drawn together, arguments are bound to develop down the line and a good HR department will be able to bring the arguments to conclusions and take further action if necessary (for example, if any incidents of abuse, harassment, or discrimination take place).
Productive and Profitable
Use these tips to work more productively- and increase your profits.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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January 23, 2019
Worried You Can’t Afford An Attorney?
If you’ve been involved in an accident that was not your fault, you’re probably aware of the fact that you may be entitled to compensation.
However, a lot of people worry about making a claim, as they are concerned that they will not be able to afford the attorney costs. This is an understandable concern, but there is no need to fret. Read on to discover some tips for hiring an attorney.
The Strength of Your Case
If your case is weak, then there is a high chance that you are going to find yourself out of pocket.
Therefore, you need to thoroughly understand the strength of your case before you spend money. Professionals like Sevey Donahue Talcott will fill you in on these issues before taking any of your cash.
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Nevertheless, there are three key factors that determine the strength of your case. You must be able to show that someone else caused the accident, and that the incident occurred within the past three years (the time requirement can vary by local law). Thirdly, you must have seen a doctor for your injuries.
Aware of all Costs?
There are a lot of attorneys, and you need to understand how all fees are charged.
You need to be aware of exactly what you are getting for your money, and if there are any parts of the services that are charged as extras.
No-win, No-fee Agreements
There are many benefits of going down this route. By opting for a no-win no-fee attorney, you are only going to pay legal fees if your case is a success. This means that you are provided with a significant degree of monetary protection. You also don’t need to pay a huge upfront payment to begin the claim process.
Finding Value
While it may be tempting to go for the cheapest attorney you can find, you need to ensure that they have a considerable degree of experience and a good reputation in the industry. It will only cost you more money in the long run if you opt for someone who does not have the ability to secure compensation for you.
Hopefully, you now have a better understanding of the costs involved when hiring a attorney, as well as some of the different steps you can take to ensure you get the best deal for you. A good attorney is going to be worth his or her weight in gold if they are able to secure compensation for you, which is why you need to be cautious.
At the end of the day, you do not want to spend your hard earned cash simply to get nothing in return.
Managing A Settlement
If you happen to win a settlement in a legal case, be very cautious when you receive the payment. This payout is a one-time event, so consider taking these steps to manage your money:
Action Steps To Consider
Create a budget, even if that budget is simply on notebook paper.
Separate your expenses between fixed and variable, and take a hard look at your variable spending.
Take steps to cut your variable expenses each month and put the amount you save into a separate savings account.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
The post Worried You Can’t Afford An Attorney? appeared first on Accounting Accidentally.
5 Personal Finance Mistakes To Stop Making Today
If you want to make sure you’re living a comfortable, happy life, one of the most important things to get under control is your personal finances.
Some people claim to be ‘no good with money’, but really, this is just an excuse- so that they can avoid changing their habits.
The reason that people don’t diet, don’t exercise, and don’t resolve bad personal relationships is that change is hard. As a result, we don’t really, truly change and grow unless we’re in real pain. When we’re at that point, the pain of change is less severe than that pain of not changing.
Having new things can be exciting for a while, but it doesn’t take long for them to lose the feeling that those items originally provided, and this leaves people wanting to buy even more stuff to get the feeling back. Recognizing these types of habits is important, in order to get back on track financially
Here are 5 personal finance mistakes to stop making today, so you can start to feel confident and comfortable managing your money:
Do You Budget?
If you don’t have a budget in place, you’re likely spending your money all over the place without really knowing how much you’re spending, or what you’re spending it on.
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Action Steps To Consider
Create a budget, even if that budget is simply on notebook paper.
Separate your expenses between fixed and variable, and take a hard look at your variable spending.
Take steps to cut your variable expenses each month and put the amount you save into a separate savings account.
Saving What’s Left (or not saving at all)
The biggest mistake you can make is saving what’s left after you’re done spending.
Oftentimes, this means you’re not saving at all. Many people don’t bother, and this is how they get into debt. You should save first, making it a non-negotiable part of your week/month.
Set up an automatic payment so you don’t even need to think about it. You never know when you might encounter a potentially costly emergency, such as having to hire a personal injury attorney or replace a broken boiler.
Saving $1 per day can be a great starting point, and you can bump it up as you feel comfortable.
What About Real Assets?
Cars and other purchases aren’t investment assets. They drain your money, rather than helping you to make more of it. Instead, you should look into investing in real assets, such as stocks, bonds, and real estate.
This is the only real way you can begin building wealth in the long term, so look into it if you want to protect your money and future.
The Evils of Debt
Spending money you haven’t got isn’t a smart move. Interest rates can be high, and people often get into debt over things that they don’t really need. Avoid borrowing money – your emergency fund and budget should help you to do this.
Keeping Up With Your Social Group
Just because your social group has expensive luxury items doesn’t mean you need them.
They might look like they are living in luxury, but in reality, unless you know they are very wealthy, they are likely in lots of debt, having to pay off things like cars and phones each month. Bear this in mind and you’ll be happier in the long run!
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) http://www.accountingaccidentally.com/
(you tube channel) kenboydstl
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