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Archives for September 2021

Making Midseason Corrections

After the first two weeks of the NFL season it seems some fans are already looking ahead to next year.  Their teams have gone oh-and-two and the prospects for winning this year and making the playoffs are somewhere in the range slim to none.

“Better luck next time,” as the saying goes.

Whoa, hold on, isn’t it a 17-game season? Are they giving up too early?

Well, the truth is, as it is with business, an NFL team is really a week-to-week, real-time enterprise.  The defense and offense can make subtle or wholesale changes to get on track.  Two loses don’t make a season.

Same goes for your business.  It’s not that we don’t want to look ahead to next year, but we can manage this team from week to week (or financial quarter to financial quarter) quite successfully.

Remember when we talked about goals? By setting (and keeping on track with) goals you give your company direction, momentum and, really, lift.

Let’s say that at mid-year, your sales are slow or behind projections.  That’s when you gather your team together to reexamine your goals and discuss your options to getting back on track.  If sales are down, talk over how each part of the enterprise can help sales meet their goals. If production is behind, what can the team come up with to help meet customer demand if the supply chain is challenged?

You get the idea. This is about stepping up and taking action as a team that results in success for the greater good.

If you need help with the financial part of that equation, call or write to us.  TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.

**photos courtesy of Unsplash (Manasvita S and Behnam Norouzi, photographers)

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“Going out of my head…”

Little Anthony and the Imperials sang it and most of us live it at one point of our lives:

“Going out of my head…”

Sure, life has its distractions, both good and not so good.  But the reality is that focus is a good thing.  Now that focus can be on that thing you are leaving your senses for.  Or it can be for the entrepreneurial business you are trying to keep straight.

Now, don’t get me wrong.  Sometimes distractions are a way to get creative and ensure a positive and free-thinking direction for your enterprise.  However, if you leave your head too often and don’t focus on the things you should, then things could get sticky with your partners, employees, local government and the tax man.

So, if you are the creative thought leader of your company and don’t have a head for the business side of the business, perhaps you should consider taking on employees or stakeholders who can help keep the things in your head that need to be kept in your head? Maybe you could use help with:

  • Operations.
  • Human resources.
  • Marketing.
  • Sales.
  • Supply chain management.
  • Finance.

Now imagine this team of phenomenal head-keepers all around your conference table with you leading them.  Smart people hire smart(er) people so they can take their enterprises to the next level.

Oh, and that last one on the list? We can help you with that.

For more on how to choose and implement a comprehensive approach to managing your company, call or write to us.  TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.

**photos courtesy of Unsplash (Fakurian Design and Riccardo Annandale, photographers)

 

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It’s an Accrual World…or is it?

Cash or accrual? Accrual or cash? Which approach should I take?

Huh?

Yeah, we’re talking about accounting approaches…again.  But that’s ok.  It’s our business.  And it should be yours, too.

Sure, you’re the business owner, founder, inventor, chief creator or whatever. But if you don’t know how your expenses are handled then you might not be in business all that along.

So, please, pay attention, here.  You do have a choice in accounting approaches. And it has to do with timing.

If you use cash basis accounting, revenue is recorded when cash is received from customers and expenses are recorded when cash is paid out (payroll and bills).

  • Usually smaller businesses (less than $5 million in annual revenue)us this system as it is simpler.
  • It is not about how you are paid (cash) rather it means that invoices aren’t income until they are settled.
  • Same with bills—they aren’t expenses until they are paid.

Accrual basis accounting records revenue when it is earned and expenses are recorded when consumed.  That is:

  • Income is recognized as soon as an invoice is generated—not paid (payment received).
  • And bills—expenses—are recognized as soon as they show up, not when they are paid.
  • This system works better for larger companies, usually with $5 million or more in annual revenue.

Then there are hybrid systems, too. But be sure and understand your business and seek out the counsel of an accounting professional before you choose an accounting method for your company.

For more on how to choose and implement an accounting approach, call or write to us.  TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.

**photos courtesy of Unsplash (Steve Johnson and Scott Graham, photographers)

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I’ll get to that…tomorrow…maybe

“Procrastination is opportunity’s assassin.” – Victor Kiam

“Procrastination is like a credit card: it’s a lot of fun until you get the bill.” – Christopher Parker

Procrastination is one of the most common and deadliest diseases and its toll on success and happiness is heavy” – Wayne Gretzky

We are all guilty of putting things off. A lack of resources or time makes us reassess why we even have to do something, let alone do it on time.

But let’s face it: as the quotes above have said, procrastinating is as much an adversary to your business as a lack of cash flow or your biggest competitor. You need to face up to this challenger as you would any crisis you encounter in your business.

So, what if I put things off? Or miss a deadline? So what?  Well, procrastination is bad for your business because it can:

  • Cause you to miss opportunities.
  • Ruin customer relationships.
  • Damage your reputation.
  • Harm your health.
  • Keep you from reaching your goals.

From a financial perspective, putting things off—like paying taxes or doing payroll or collecting past due invoices – has a very real impact to your company’s bottom line. You can combat procrastination by:

  • Writing down your goals then doing them.
  • Knowing your priorities.
  • Maintaining a strong focus.

For more on how to get things done now and not put them off any longer, call or write to us.  TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.

**photos courtesy of Unsplash (Magnet.me and Brett Jordan. photographers)

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Goal!!!!!!!!!!!!!

They are simple things, really.  Looking ahead for the future of your business.

Sounds dry and boring, right?

Nope! You have to look at setting goals for your business with the same enthusiasm as that soccer (futbol) announcer from a few years back:

GGGOOOAAALLLL!!!!!!!!!!!!!!

Setting goals for yourself and your company is a joyful thing. Really.  Think of it as charting the course for your child, your baby—it’s exciting to know what you have in store from them as the mission unfolds.  Think about it as a way to help navigate around the unknown—if you begin with the end in mind, it becomes simpler to avoid disaster.

What makes a goal a goal?

  • Specificity—it is clear what you are trying to accomplish.
  • Quantifiable—how much or how big?
  • Measurable—this helps give it shape and a reality.
  • A timeframe—give yourself a deadline to accomplish your goa.

As for how many, that’s up to you.  By examining your company and yourself you know what you are capable of you by when.

What kind of goals should you set?

  • Financial
  • Operational
  • Marketing
  • Sales

While those other areas are important, that first one, financial, is why we are here. Setting financial goals are really important, but they shouldn’t be conceived in isolation.  That is, you can’t set a financial goal without knowing the condition and goals of your operation. By the same token, you can’t set serious financial goals without knowing the direction your sales and marketing people are going.

Are we ready to set some goals?

For more on how to set goals for your business, call or write to us.  TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.

**photos courtesy of Unsplash (photographers Catherine Hughes and Berge Maelum); video courtesy of YouTube and Joel Leistmann

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