Title: Silver Bullet #2: Stay in Control of Your Business
Stay in Control of Your Business
or someone else will.
The Value of a Good Accountant
It is important to understand that accountants actually play a big part in balancing budgets. But their best contributions go only as far as their GAAP training. Your accountant is not the final word, but if you know exactly what you need and buy that service from youraccountant like you buy groceries or the services of a plumber, an electrician, an auto repair specialist, or any service supplier, your accountant can be a significant part of the financial team of your business.
Business Advisor or Accountant?
Bad accounting does not necessarily mean a bad accountant. You are giving your accountant your information to organize. This is why you must become a student of your business. After all, it’s your business that promises to support your family and carry you for years. At the very least, learn some sound basics.
Stay in control of your money. Don’t just blindly hand it all to an accountant, or to anyone for any reason and assume that you are in good hands. This isn’t an Allstate commercial. Above all, don’t rely on your accountant to walk you through life. He can’t, and she won’t.
Gotham Is Under Attack
Imagine what would happen if all of the villains attacked Gotham City at once. The police are losing the battle. The city is in complete turmoil. People everywhere are being dropped in vats of green goo and all the banks are being held for ransom by the Joker and the Penguin. Then the searchlight goes up and hovers over the tall buildings, calling on available heroes for help. But, lo and behold, a silhouette of Robin appears. As the crowds of angry people gather outside of the mayor’s office demanding answers, the mayor steps forward with an announcement.
“Friends of Gotham, this year, Robin has the contract. He only charges a small monthly retainer and he’s been reasonably reliable. ‘Seems to always show up on time. His outfits are clean and in good shape. Granted, he doesn’t have the Batmobile, but my office was able to get him a great lease deal on a new Toyota Camry. And, hey, we do trust him. He understands the villains’ rules and was sufficiently trained to at least scale the main walls of the important buildings around town. He has good English, keeps good records, and I’m sure he can represent us well to the Joker.”
BUSINESS FINANCIAL ADVISOR. vs. ACCOUNTANT
| Batman (strategy) | Robin (tactics) |
|---|---|
| THE FUNNEL | THE SPOUT |
| BIG PICTURE | DETAILS |
| THE SHOE… | THE LACES |
| MAIN CATEGORIES | SUB-CATEGORIES |
| THE SICKLE | THE TRIMMER |
| BIG SWIPES | CLEAN AND TIDY UP |
| CREATES BALANCE | MAINTAINS BALANCE |
| DESIGNS, DEVELOPS | IMPLEMENTS, MANAGES |
| SEEKS PROACTIVE MEASURES | AVOIDS REACTIVE MEASURES |
| 30 DAY RESULTS | QUARTERLY RESULTS |
| LEADS IN – Front End | CLOSES OFF – Back End |
| QUANTIFIES the RESULTS | VERIFIES the OUTCOME |
| BUDGET, SCORECARD | P&L, BALANCE SHEET |
If you want your business to be more than a hobby, you will need both. On rare occasion they come as a two-in-one package, although this is a very uncommon find. Both have entirely different training, experiences, and agendas, and almost always, one will outshine the other. If your goal is balance, then find yourself a great Batman and a great Robin and create balance between them.
GAAP accounting rules use the exact same accounting procedures for Larry’s Landscaping and Garden Supply, a small family-owned business, as they do for IBM, General Motors, Coca Cola and the rest. It must be remembered that Certified Public Accountants are contracted by, and work for the Federal Government. It says so right in their license to practice. They are sworn to uphold government tax laws and protect government interests.
No one wants to be non-compliant and get in trouble with the IRS. Many small business owners completely turn their books over to some accountant to take care of everything. believing they are avoiding trouble. No questions asked.
It is important to know that accountants do not hold pixie dust and are not a golden guarantee that you will avoid IRS trouble. An accountant is your first-pass, proofreader of your tax situation before you enter the lion’s den. They will spot little things here and there. But sometimes accountants can often easily create bigger problems if they do not understand your business.
You pay an accountant to fill out government forms accurately. That is their service. Maybe you are buying this service because you might be afraid to make a mistake. Maybe you don’t have the time, interest or inclination to do them yourself. Remember that the forms are not designed for accountants. They are designed by the government to be independently used by every US. citizen. Accountants can only work with the numbers that they are given. Most accountants are often too busy to remind you to file tax forms. They certainly don’t follow you around every day and make notes about your intentions to spend your money. So, the bottom line is that your business starts and ends with you.
Yes, you need professional services to review your numbers for any errors and oversights and keep within the constantly changing tax laws. But, learn how to control ALL of your professionals. Control your accountants. Control your lawyers. Control your bank.
Stay in control of your business.
REBUILD YOUR BUSINESS.
Get It Safe. Keep It Safe.
REBUILD YOUR BUSINESS. Get It Safe. Keep It Safe.
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PROVEN “SILVER BULLET” HIGH SPEED LEARNING
BUSINESS IDEAS FOR IMMEDIATELY
INCREASING INCOME AND PROFIT
IN 2021
The National Business Education Council (NBEC) is made up of teams of small business subject matter experts, located in the US. and countries across the globe. Our sole purpose is to help small businesses rebuild, get safe and stay safe.
Twice each month, we conduct online 60 minute “Silver Bullet” learning forums, bringing ways to help our small business members increase their income and profitability.
SILVER BULLET INTERACTIVE SESSIONS are free on Zoom.
Bring all of your questions with you. Everyone’s questions and concerns are covered. If attendance is too large, another session will be rescheduled for the same topic.
Choose your topics of interest. Register below each time. The cutoff date for each session is FIVE business days prior to the date of the event.
“SILVER BULLET” HIGH SPEED LEARNING REGISTRATION
Any materials needed for the session will be forwarded to your registration email. For questions regarding this event, email: tguajardo@kanketa.com.
CLIMB ABOARD!
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FRIDAY, JANUARY 15
Registration Cutoff: January 8
DON’T SELL YOUR BUSINESS. LEASE IT OUT FOR LONG TERM INCOME.
Answers the Question: “What do I do if I didn’t save enough for retirement?
ALL ABOARD
IN 2021
TRACK 1: January Departure
DON’T SELL YOUR BUSINESS. LEASE IT OUT FOR LONG TERM INCOME.
Answers the Question: “What do I do if I didn’t save enough for retirement?”
TRACK 2: January Departure
STAY IN CONTROL OF YOUR BUSINESS
Answers the Question: “Why can’t my accountant take care of everything?”
TRACK 3: February Departure
YOU MUST BE A MILLIONAIRE BY AGE 60… OR ELSE!
Answers the Question: “How much should I have in the bank at retirement?”
TRACK 4: February Departure
MAKE YOUR CHECKBOOK MATCH YOUR P&L
Answers the Question: “How much profit do I really make? Where is it right now?”
TRACK 5: March Departure MINIMIZE YOUR COST OF GOODS SOLD Answers the Question: “How much should my cost of goods sold be?”
TRACK 6: March Departure
ONLY RISK WHAT YOU CAN AFFORD TO LOSE
Answers the Question: “How much should I reinvest into my business?”
TRACK 7: April Departure
SET YOUR BUSINESS UP TO MAKE THE MOST PROFIT
Answers the Question: “How Does This Apply To Me If I’m A Company of One Person?”
TRACK 8: April Departure
PLAN TO HAVE 4 MANAGERS IN 60 MONTHS
Answers the Question: “How Many Managers Do I Need?”
TRACK 9: May Departure
PAY YOURSELF WHAT IT COSTS TO REPLACE YOU
Answers the Question: “How Much Should I Pay Myself As An Owner?”
TRACK 10: May Departure
KNOW WHAT YOUR TIME IS WORTH
Answers the Question: “How much time can I afford to give to my business?”
TRACK 11 June Departure
KNOW THE GOOD WILL VALUE OF YOUR BUSINESS
Answers the Question: “How much is my business worth right now?”
TRACK 12: June Departure
PAY YOUR PEOPLE WHAT YOU CAN AFFORD
Answers the Question: “Am I paying my people too much? Not enough?”
TRACK 13: July Departure
ONLY GIVE RAISES BASED ON THE PREVIOUS YEAR
Answers the Question: “How much can I afford to give for raises this year?”
TRACK 14: July Departure
PAY YOURSELF THE MOST FROM NET PROFIT
Answers the Question: “How much money should I personally take out of the company? What’s reasonable?
TRACK 15: August Departure
MAKE MARKETING A FIXED COST
Answers the Question: “How much should I invest in marketing?
TRACK 16: August Departure
DON’T OVERPAY FOR DEBT REDUCTION
Answers the Question: “How much should I pay to retire back debts?
TRACK 17: September Departure
ONLY TAKE ON DEBT THAT YOU CAN AFFORD
Answers the Question: “How much debt can I have before I am unsafe?”
TRACK 18: September Departure
HOLD THE LINE ON ACCOUNTS RECEIVABLE
Answers the Question: “How much should my accounts receivable be?”
TRACK 19: October Departure
HAVE A SUFFICIENT LINE OF CREDIT
Answers the Question: “How much should my line of credit be?”
TRACK 20: October Departure
SAVE 25% OF YOUR NET PROFIT EVERY MONTH
Answers the Question: “How much should I put into savings every month?
TRACK 21: November Departure
CONTROL YOUR CUSTOMER CREDIT
Answers the Question: “How much credit should I give to all my customers combined?”
TRACK 22: November Departure
REDUCE CORPORATE TAXES BY ANOTHER 8.25%
Answers the Question: “How much should I save for corporate taxes?”
TRACK 23: December Departure
DON’T GET AN INVESTOR
Answers the Question: “How much stock should I give to an investor?”
TRACK 24: December Departure
BE YOUR OWN BANK
Answers the Question: “How can I borrow if when the bank says “NO?”
