During the last month I have been teaching at Bentley University and working on a website redesign for KBK Wealth Connection (formerly KBK Connections) so my blogging frequency has been less than ideal. To help out while I am swamped with projects, I have asked guest bloggers to fill you in on their thoughts about what is important to know about money management. My first guest blogger is Priscilla Chura of Small Biz CFO. She is an financial type that offers easy to follow advice on how to manage cash flow. Here is what she had to say:
Basic Cash Flow Rules (© 2009 Small Biz CFO)
1) Remember that Cash is King!
▪ It's the lifeblood of your business.
▪ Manage it with the time and attention it deserves - daily, weekly, monthly...
▪ It's costly to make decisions using inaccurate cash balances.
2) Don't manage cash using on-line bank balances.
▪ Manage cash using an accurate cash balance from your accounting system.
▪ Don't mistakenly think that your on-line balance is the true cash balance; it isn't!
▪ Using on-line balances can too easily result in bounced checks.
3) Record business transactions on a timely basis.
▪ In a perfect world, this is in real time or daily.
▪ However, many small businesses can effectively manage their cash flows on a weekly basis.
▪ Beyond weekly, you're at risk for cash flow problems - unless you carry high cash balances or have very few cash transactions.
4) Reconcile the monthly bank statement to your books - monthly.
▪ Consider using on-line banking to record automatic debits & withdrawals into your books throughout the month.
5) Good bookkeeping is critical for good cash management!
▪ If you or your staff can't get to it on a timely basis, then by all means arrange for someone else to do it. Putting it off will cost you more in the long run...
When you maintain accurate balances in your accounting system, you'll have the numbers you need when you need them!
Do you follow these basic cash flow rules? If so, tell me how. If not, tell me what gets in the way. Also feel free to contact Priscilla directly at chura@smallbizcfo.com with any comments or questions or to sign up for her newsletter. Happy Accounting!
Monday, November 9, 2009
Wednesday, October 28, 2009
The Downtown Women's Club womensDISH blog: Are you predictably irrational with your money?
Tuesday, October 6, 2009
Exercise your worth – no matter what the situation (Women`s Business, 01 Oct 2009, Page 20)
Text by Kathleen Burns Kingsbury
Women`s Business
01 Oct 2009
In the current economy, women more than ever doubt themselves when it comes to asking for money and getting paid what they deserve. Commonplace are statements such as “I can’t ask my boss for a raise because people are losing their jobs,” to “I didn’t...read more...
Wednesday, September 30, 2009
Getting Budgetary Control by Lowering Expenses
This is a guest post by Antoinette Babek and Hollis Colquhoun, Accredited Financial Counselors and co-authors of Women Empowering Themselves: A Financial Survival Guide.
The first thing to do when you are trying to lower your basic expenses is to understand your budget and what your are currently spending. Set up a monthly budget ledger to track your fixed expenses like rent, and be sure to pro rate (calculate the cost per month) those expenses that may only come every six months like car insurance.
Here are a few tips on cutting some basic expenses:
Check your credit report regularly to make sure it is accurate and that your payments are being properly reported. Your debt payment history is the biggest component of your credit score, so make your monthly debt payments on time. Your credit score will determine how much you pay for insurance, rent, and what your interest rates will be on all types of loans. It will also influence your ability to get a job. Go to www.annualcreditreport.com for your free annual report.
Car Insurance:
If you have a good driving record and a low deductible, (the amount that you have to pay out of pocket before getting money from the insurance company), raise your deductible from say $250 to $500 and your monthly premium will go down. Ask your insurance company about taking an online “safe driver” course which will also reduce your premium.
Utilities:
Check with your electric company about lower rate, off-peak hours (usually after 9pm). Do your laundry during off-peak times and your electric bill will be reduced. Lower your thermostats when you aren't home and while you are sleeping.
Phone, Internet, Cable:
Shop around for promotions and if possible get rid of your land line. Review your cell phone calling and text usage; you may be paying for more than you need. Cut out the “super-deluxe” premium cable package. It is cheaper to get basic cable and watch shows online, rent or take out movies from the library.
Prescriptions:
You can usually save if you order prescriptions in a 90-day supply and some store chains like Walmart and Target offer programs where a one month supply of many generic medications are $4. Check with your doctor annually to review your list of medications and if possible get the latest generic substitute. Check prices on drugstore.com for non-generic medications and you may save up to 25%.
Food:
This is usually the third biggest monthly expense, but it can be controlled. How often do you shop during a week? Do you buy pre-packaged foods or do you make meals from scratch? It is best to construct a week's menu in advance and plan for breakfast, lunch and dinners. Shop once per week, checking out online coupon sites as well as in-store specials. Cook from scratch and get fruits and vegetables that are in season. Don't shop with your kids and don't go when you're hungry! The higher-priced items in the grocery store are at eye level, so search the top and bottom shelves for bargains. For inexpensive dinners, make a double recipe pot of soup or stew, bake a ham, or cook a pasta dish on the weekend that can make a family meal with leftovers to have for lunch or freeze for another dinner. You can create a nutritious meal for 4 people at a cost of $2-3 per person!
Here is a good recipe:
ONE PAN MEAT LOAF DINNER:
2 lbs chopped meat (beef)
3 yellow potatoes cut into wedges
1 white onion chopped
Salt & pepper to taste
2 eggs
1 cup plain bread crumbs
2 cups ketchup
½ box frozen peas
Chop the onion and save half
Mix : meat, half onion, eggs, pepper, salt, bread crumbs,
1 cup ketchup
Mold into a loaf
Place in roasting pan
Surround with potatoes, other half of onion and peas
Cover the meat with the remaining cup of ketchup
Salt and pepper the potatoes
Bake for one hour or until the meat is cooked.
Makes great leftover sandwiches
Serves 4-5 people Cost: $2-3 per serving
What do you do to cut your basic expenses?
The first thing to do when you are trying to lower your basic expenses is to understand your budget and what your are currently spending. Set up a monthly budget ledger to track your fixed expenses like rent, and be sure to pro rate (calculate the cost per month) those expenses that may only come every six months like car insurance.
Here are a few tips on cutting some basic expenses:
Check your credit report regularly to make sure it is accurate and that your payments are being properly reported. Your debt payment history is the biggest component of your credit score, so make your monthly debt payments on time. Your credit score will determine how much you pay for insurance, rent, and what your interest rates will be on all types of loans. It will also influence your ability to get a job. Go to www.annualcreditreport.com for your free annual report.
Car Insurance:
If you have a good driving record and a low deductible, (the amount that you have to pay out of pocket before getting money from the insurance company), raise your deductible from say $250 to $500 and your monthly premium will go down. Ask your insurance company about taking an online “safe driver” course which will also reduce your premium.
Utilities:
Check with your electric company about lower rate, off-peak hours (usually after 9pm). Do your laundry during off-peak times and your electric bill will be reduced. Lower your thermostats when you aren't home and while you are sleeping.
Phone, Internet, Cable:
Shop around for promotions and if possible get rid of your land line. Review your cell phone calling and text usage; you may be paying for more than you need. Cut out the “super-deluxe” premium cable package. It is cheaper to get basic cable and watch shows online, rent or take out movies from the library.
Prescriptions:
You can usually save if you order prescriptions in a 90-day supply and some store chains like Walmart and Target offer programs where a one month supply of many generic medications are $4. Check with your doctor annually to review your list of medications and if possible get the latest generic substitute. Check prices on drugstore.com for non-generic medications and you may save up to 25%.
Food:
This is usually the third biggest monthly expense, but it can be controlled. How often do you shop during a week? Do you buy pre-packaged foods or do you make meals from scratch? It is best to construct a week's menu in advance and plan for breakfast, lunch and dinners. Shop once per week, checking out online coupon sites as well as in-store specials. Cook from scratch and get fruits and vegetables that are in season. Don't shop with your kids and don't go when you're hungry! The higher-priced items in the grocery store are at eye level, so search the top and bottom shelves for bargains. For inexpensive dinners, make a double recipe pot of soup or stew, bake a ham, or cook a pasta dish on the weekend that can make a family meal with leftovers to have for lunch or freeze for another dinner. You can create a nutritious meal for 4 people at a cost of $2-3 per person!
Here is a good recipe:
ONE PAN MEAT LOAF DINNER:
2 lbs chopped meat (beef)
3 yellow potatoes cut into wedges
1 white onion chopped
Salt & pepper to taste
2 eggs
1 cup plain bread crumbs
2 cups ketchup
½ box frozen peas
Chop the onion and save half
Mix : meat, half onion, eggs, pepper, salt, bread crumbs,
1 cup ketchup
Mold into a loaf
Place in roasting pan
Surround with potatoes, other half of onion and peas
Cover the meat with the remaining cup of ketchup
Salt and pepper the potatoes
Bake for one hour or until the meat is cooked.
Makes great leftover sandwiches
Serves 4-5 people Cost: $2-3 per serving
What do you do to cut your basic expenses?
Friday, September 25, 2009
Do you know your ABCs?
Last weekend I went camping in New Hampshire with some friends and their 4 year old daughter, Catherine. Catherine is my kind of chick in that she is bright, independent and a force to be reckoned with! Her energy was non-stop and her thirst for learning insatiable. With mom's help, she was mastering new words and practicing her ABC's. Her spelling repertoire is limited but her pride when she nails a word contagious.
Hanging out with Catherine made me think about how to inspire my clients and audiences to love learning with the zest of a four year old. I decided that I need to make it fun and make it simple. Yes, professionals need to learn and master the ABC's of earning their worth.
ABC stands for Ask for Money, Believe You're Worth It and Create Opportunities to Get Paid:
ASK
It may seem obvious but you need to ask for money in order to be paid. Many of the business professionals I work with fear asking and talking about money and avoid bringing it up. The result - they end up volunteering their services or letting the other party set their rate. Do not lose your power around money by not asking. Instead go in to any business meeting with the intention of asking to be paid for your products and services.
BELIEVE
The largest hurdle in earning your worth is believing you deserve it. Yes, confidence is key. You need to embrace your power and not be afraid to let others know that you believe in your abilities. If you are not their yet, start by listing all of the things you provide your clients. Make sure you include everything from free coffee to returning calls promptly to changing their bottom line profits. Read the list before each meeting to remind you that you are worth your fee.
CREATE
You need to create opportunities to get paid if you are going to survive and thrive in business. Think outside the box and look for new revenue streams, sponsors for your work and collaborative partners to make your professional and financial dreams a reality.
Don't worry if the ABC's of earning your worth take time to master. Just know Catherine is out there practicing along with you.
Hanging out with Catherine made me think about how to inspire my clients and audiences to love learning with the zest of a four year old. I decided that I need to make it fun and make it simple. Yes, professionals need to learn and master the ABC's of earning their worth.
ABC stands for Ask for Money, Believe You're Worth It and Create Opportunities to Get Paid:
ASK
It may seem obvious but you need to ask for money in order to be paid. Many of the business professionals I work with fear asking and talking about money and avoid bringing it up. The result - they end up volunteering their services or letting the other party set their rate. Do not lose your power around money by not asking. Instead go in to any business meeting with the intention of asking to be paid for your products and services.
BELIEVE
The largest hurdle in earning your worth is believing you deserve it. Yes, confidence is key. You need to embrace your power and not be afraid to let others know that you believe in your abilities. If you are not their yet, start by listing all of the things you provide your clients. Make sure you include everything from free coffee to returning calls promptly to changing their bottom line profits. Read the list before each meeting to remind you that you are worth your fee.
CREATE
You need to create opportunities to get paid if you are going to survive and thrive in business. Think outside the box and look for new revenue streams, sponsors for your work and collaborative partners to make your professional and financial dreams a reality.
Don't worry if the ABC's of earning your worth take time to master. Just know Catherine is out there practicing along with you.
Monday, September 21, 2009
Next Stop the Emmys!
I was recentley voted one of The Top 10 Executive Coaches by Women's Business News and wanted to practice Savvy Self Promotion as recommended by my Chicks Make Cents radio guest, Bonnie Marcus, last Friday. Congrats to my fellow honored coaches. Next stop Emmy?!
P.S. Tune in and listen to Bonnie's words on self promotion. Good stuff.
Shared via AddThis
Thursday, September 10, 2009
Are you missing the lazy days of summer?
August is a great time for a New England clam bake complete with corn on the cob, steamed clams and boiled lobster. It is a messy affair but in my opinion well worth the trouble. With lobster crackers in hand and a bib tightly fastened around my neck, I dig in and eat until my stomach is full with delicious seafood.
At the last family lobster fest, my niece declared that lobster was good but the hard work involved in cracking the shell and picking out the meat was a drag. This led to a heated debate about the value of boiled lobster versus lazy man's lobster. For those of you not familiar with this term, the lazy man's lobster is served at restaurants with the shell already removed. No messy juice squirting across the table, no hard labor and no wet naps needed.
Half of the table believed whole heartedly that the only way to eat lobster was the old fashion way; the other half thought why not have someone else do it for you even if it cost you more money. Yes, for some having the lobster presented cleanly on the plate was well worth laying out another few bucks; for other it was a frivolous waste of cash.
Yes, even when it comes to lobster we have money scripts about value. Interestingly enough, the split was somewhat down generational lines with the younger folks willing to pay a premium and those over forty saving their money for something more worth while - like dessert.
How can you apply this to your business? Here are some thoughts to consider:
Value is in the Eye of the Beholder
Value is the difference between the cost of something and the benefit it confers. I was raised by parents that would not think of eating a lazy man's lobster so I would not pay extra for this service. But my clients were not raised in the same house so it is important for me to examine my offerings through their eyes when it comes to value, not my own.
Perceived Value is Generational
The age of your target market impacts what they are willing to spend money on and what they see as worthwhile. For instance, Baby Boomers are less likely to think of an iPhone as a necessity, but Gen X and Ys swear they could not live without one. Make sure you consider the age of your clients when asking for and communicating value to them.
Ask Questions and Be Surprised
The most important lesson in sales and asking for money is to ask questions and not be attached to the results. When you are willing to open up to see the world from your client's perspective, you will sell more and do a better job of meeting their needs so they become return customers.
Yes, eating lobster that day reinforced my belief in the listen, learn, and earn philosophy I teach all my clients and audiences. Bon Appetit!
Copyright @ KBK Connections, Inc. 2009
At the last family lobster fest, my niece declared that lobster was good but the hard work involved in cracking the shell and picking out the meat was a drag. This led to a heated debate about the value of boiled lobster versus lazy man's lobster. For those of you not familiar with this term, the lazy man's lobster is served at restaurants with the shell already removed. No messy juice squirting across the table, no hard labor and no wet naps needed.
Half of the table believed whole heartedly that the only way to eat lobster was the old fashion way; the other half thought why not have someone else do it for you even if it cost you more money. Yes, for some having the lobster presented cleanly on the plate was well worth laying out another few bucks; for other it was a frivolous waste of cash.
Yes, even when it comes to lobster we have money scripts about value. Interestingly enough, the split was somewhat down generational lines with the younger folks willing to pay a premium and those over forty saving their money for something more worth while - like dessert.
How can you apply this to your business? Here are some thoughts to consider:
Value is in the Eye of the Beholder
Value is the difference between the cost of something and the benefit it confers. I was raised by parents that would not think of eating a lazy man's lobster so I would not pay extra for this service. But my clients were not raised in the same house so it is important for me to examine my offerings through their eyes when it comes to value, not my own.
Perceived Value is Generational
The age of your target market impacts what they are willing to spend money on and what they see as worthwhile. For instance, Baby Boomers are less likely to think of an iPhone as a necessity, but Gen X and Ys swear they could not live without one. Make sure you consider the age of your clients when asking for and communicating value to them.
Ask Questions and Be Surprised
The most important lesson in sales and asking for money is to ask questions and not be attached to the results. When you are willing to open up to see the world from your client's perspective, you will sell more and do a better job of meeting their needs so they become return customers.
Yes, eating lobster that day reinforced my belief in the listen, learn, and earn philosophy I teach all my clients and audiences. Bon Appetit!
Copyright @ KBK Connections, Inc. 2009
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