How Outsourced Bookkeeping Help Businesses

Are your employees costing you more than you think?

Do you ever feel like you are working for your employees, instead of them working for you? That’s because in most small businesses, the owner has no idea of the true cost of employees and it is one of the biggest reasons we suffer poor cash flow.

For example…

If you pay your bookkeeper $15 an hour, he/she can be costing your company $75,000 a year. When I bring this up I get a shocked response from business owners, they say “NO WAY, I only pay her 15.00 an hour plus 7% in employee taxes – no way bookkeeping costs me $75,000 a year.”

We underestimate our true cost or burden rate and the locked in expense kills our cash flow if our business ever takes a down turn. Costs like medical insurance, phones, rent, computers, software, training, hiring, sick days and the 100 other little costs that add up. But those costs are chump change for a small business compared to the real expense.

The big cost is the owners’ time. Your time MUST be spent looking for new and better customers. Any time you are dealing with a bookkeeper, you are losing sales to your competitor. The cost of finding a new employee and getting them trained on how you want things done can take up $5,000 to $15,000 of your time. That number never shows up on your Profit and Loss, it’s hidden. But that is lost time – losing customers that won’t buy today, and they won’t be buying from you in a year. You have lost opportunities forever when you’re dealing with back office tasks that don’t need to be done.

Or what about the time you have to spend every day managing or ‘interacting’, as they say now a day at MBA school? How much does that wasted time cost? Here is how to determine the ‘burden rate’ of an employee. Go to your Profit and Loss statement and look under payroll. Move the owner’s payroll to overhead, because you are management, and that is where it belongs (in overhead). Now divide the total gross payroll into your total overhead and here is what you are going to find. That for every 1.00 you pay your employees, your cost is actually $2.40 to $2.60.

So that $15.00 an hour bookkeeper is actually costing you 36.00 an hour at the low end and and up to 39.00 if your office is a little nicer or your benefits above average. That’s 39.00 an hour if you have work to do or not. That is $39.00 you are paying out every day and that is plum nuts for a small business owner.

If you want to improve your cash flow, look for jobs that do not affect the customer experience. Bookkeeping is one of the first to go. On this web page you’ll find local accountants that can take that $75,000 burden rate, and cut it down to $15,000 to $25,000 a year. Plus – give you better numbers every morning and advice on how to run a better business.

Outsource your bookkeeping today, and start rounding up more cash cows.

Does Friendship Belong in Business?

A man with whom I was lunching told me about a thorny situation in which he found himself. A couple he had known socially approached him to broker a business they wanted to sell. He eagerly took on the assignment, but found that nothing satisfied his friends-turned-clients. They were critical of his marketing techniques, impatient about the lack of a quick sale. Yet this man insisted on seeing it through. “After all,” he rationalized, “friendship is friendship and business is business.”

Trust, consideration and open communication – the basis of a friendly relationship – were treated as unimportant once the relationship shifted to a business deal. When the clients decided to cancel the brokerage arrangement, he lost both the sale and the friendship.

What many people fail to realize is that good business relationships require the same attention as personal ones do. The idea that we can that we can treat others shabbily in a business setting is as outdated as a spittoon.

Anyone paying attention can find evidence that the friendship factor is a powerful business tool that’s used all the time.

A magazine editor admitted that, all things being equal, she was inclined to give a plum assignment to a writer that she knew personally and liked. “It’s easier to work with someone that has a sense of what I’m looking for,” she says, and adds, “I also like the idea of helping a friend have more success.”

It’s a natural phenomenon that we like to do business with people we like and being genuinely likable can produce tangible results in our business. Showing kindness and consideration to others is the basis of the friendship factor and one worth cultivating.

We can learn a lot about this power by being conscious of things we respond to positively or negatively when we’re being a consumer. For instance, I sometimes shop at a large supermarket where the checkers are longtime employees and are, therefore, all familiar to me. Julie is so extraordinarily pleasant that I find myself waiting in a long line just for the experience of having a little chat with her. Not only does she greet me by name, she remembers our previous conversations and always seems thrilled to see me. (Actually, I’ve noticed that she always seems thrilled to see whomever is in her line.)

Then there’s Judy, a checker so grumpy that I have permanently boycotted her counter. Judy likes to give unsolicited advice, perhaps criticizing a purchase a customer is making or showing disapproval in some way. Her interpersonal skills are sadly lacking and I go out of my way to avoid her. I suspect I’m not the only one.

The friendship factor doesn’t just exist between you and your customers or clients, of course. There are ample opportunities to build relationships that can help expand your business by befriending other self-bossers and sharing information, referrals and ideas with them. What else would explain the popularity of social media sites such as Facebook and Twitter?

You can also polish your networking skills, thereby expanding your personal circle of connections. Not surprisingly, the most successful networkers also have a high capacity for friendship.

As more people decide to create businesses that really serve others, the friendship factor will take on even greater importance. Whether it’s joining forces with an entrepreneurial friend to complete a joint project or asking customers for referrals, the successful entrepreneur will demonstrate that friendship and business are wonderfully compatible. It also adds pleasure and satisfaction to the most ordinary encounters with others when the bond of mutual caring is present. Does your business deserve any less?

Best Business Credit Cards – What Are They?

If you own a business, you might benefit from obtaining a business credit card. These cards can often come in handy when you want to make a quick transaction, and they can also be rather useful when it comes to filling in those monthly gaps.

As with any card, you’ll want to find the best business credit cards out there before you apply for any one card. Below, you will find a list of the best cards in the business – so to speak. Compare each card with your individual business needs in order to find the one that will work best for you.

The Starwood Preferred Guest business card (American Express) is a popular choice with a lot of businesses. This card allows you to save money on various business related purchases including FedEx, Delta, Hertz, and many other vendors. In addition, you can redeem this card in more than 800 Starwood resorts and hotels.

Another popular card is the Miles card by Discover. Those that use this card every month can expect to earn up to 12,000 miles each month. In addition, you can also earn miles when you use your card at participating restaurants. Any of these best business credit cards are worth a second look.

The American Express Plum Card is also quite popular. This card allows you to expand your cash flow while you can also earn lots of different rewards. If you are into collecting miles, then look into the Delta SkyMiles card. This card will allow you to save up to $250 on Delta flights. In addition, you can earn lots of reward miles for flying.

If you fly a lot for business purposes, then this card is for you. All of these best business credit cards are a great deal depending upon what you are seeking. Since every business is different, it will pay to compare cards, rates, and bonus deals.

What are you looking for? Scope out this list of best business credit cards, and you are sure to find a great bargain. Your business can really benefit from a great card. In fact, most businesses would find it hard to function without one.

Do you need some quick cash? How about some fast transactions? Are you getting all that you can when you fly or eat out at a restaurant? If not, take a look into getting your own business card. You’ll soon find that there are lots of rewards out there for the taking.