What better way to kick off the Fall than by getting some useful information on how to effectively promote your business and increase your bottom line?

If that’s what you want, then you’ll want to read this article by my favorite online marketing expert. It cuts to the chase to solve the mystery of effective marketing using the Internet. You’ll find it on this brand new blog especially designed for small businesses.

Small Business Marketing Weekly

Although I’m primarily a freelance bookkeeper and QuickBooks trainer and consultant, I love to learn what makes small businesses really prosper – and apply it to my own, as well as suggest improvements for my clients’ businesses.

I’ve learned a lot through the MANY books I’ve read and seminars I’ve attended. And the vital conclusion I’ve come to is that, as business owners, marketing is really job #1 for all of us. That’s what keeps the sales coming in, which keeps the cash flowing. And as we know, cash is the lifeblood of your entire business! No sales = no business.

And I can tell you honestly, out of everything I’ve studied over the years and all the people I’ve learned from whose techniques I’ve actually used in my own business, there is no one that has given more high value and true nuts-and-bolts information that really works like Jim Edwards.

No one.

So I hope you enjoy this article as much as I did for a big picture reference of what we really must to be doing to pull more business in locally or virtually with our websites (and beyond). This one’s a keeper:

Small Business Marketing Weekly

And it looks like Jim will be writing a series of these helpful articles. I’m definitely going to be following them, so I thought you’d like to know about them too.

Enjoy!

Gabrielle Fontaine, PB
BookkeepingDirect.com

By the way – I’m a long-time member of Jim’s monthly training program, The Net Reporter. As I said, I think he’s the best (and I’m picky!) because he tells it like it is… AND shows you exactly how to market your business effectively online. (My business is proof of that!)

Most of his training, though, is primarily geared toward building an information-product based online business. So I usually have to try and translate what I’m learning to work for my own QuickBooks consulting business.

But this month he’s doing something I’m quite excited about… Tomorrow he’s starting a 2-webinar training series entitled:

“Using Internet Strategies on a Brick and Mortar Business”

No translation needed! So I’ll definitely be attending this one LIVE! If you’d like to attend the first webinar on Tuesday too, just join The Net Reporter and try it out for a month (you can get two of these live webinars AND get access to Jim’ “Fast Track Video Coaching” for less than most other people charge for a single webinar!)

The Net Reporter

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Whether you realize it or not (you probably already do), the Internet is a highly cost-effective way to promote your business… even if you’re a business of one.

But here’s the thing. If you are in any way actively promoting your business, whether with word of mouth, networking or any form of online or offline advertising, everyone is  going to want access to more information about you and your business from your website.

You do have a website, right?

Many prospective customers judge businesses and freelance professionals based on their website. That’s a fact.

So whether you already have your own website (and you should), or you need to get one going, I just found out about a free LIVE webinar coming up this week that you’re going to want to attend.

It’s called, “5 Critical Elements of An Effective Website”
by professional web designer and business marketer Ely Delaney

I’ve known Ely personally for a few years now, and he knows what he’s talking about, both from a technical and a marketing standpoint. He works with local small businesses and runs his own home-based business.

So Ely is right here in the trenches with us.

In the time I’ve known him, Ely has generously passed along some great website tips and tools that were a big help to me in my business. So I’m sure he’ll be giving away fantastic tips and tricks, especially for small businesses like us on this webinar.

It’s all about making our websites work harder for us and pulling in more inquiries and sales 24/7 on autopilot.

So don’t miss a chance to tap into Ely’s real world experience and cut straight to the good stuff by attending his free LIVE training this week.

When:
WEDNESDAY, August 4, 2010 at 7:00 PM Eastern Time
(That’s 6:00 PM Central, 5:00 PM Mountain, and 4:00 PM Pacific)

Register right here:

Click Here ==> Webinar Registration

You’ll discover specifically what needs to be included on your website in this economy to turn it into an effective 24/7 low-cost salesperson for your business.

Reserve your spot now. This webinar is very limited. ONLY 50 people will be able to attend. Procrastinators will literally get locked out. So that’s why I wanted to get this to you now, before it’s completely booked.

Here’s to YOUR success with the Smart Choice of turning your website into a hard working salesperson that works for you 24/7…. and never even takes a coffee break!

Gabrielle

PS – Remember, the webinar is time-sensitive, so if you want to get in on this free professional training, I suggest that  you register now, before the class is full (a total of only 50 spots available).

Here’s the link again:

Click Here ==> Webinar Registration

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Not enough cash coming in?

Many small businesses battle cash flow problems, sometimes for years. This can be dangerous, especially in a choppy economy.

If you have frequent cash flow pinches, these days you’re really living on the edge.

If you’re tired of the “excitement” and want to avoid ultimate disaster, you need to be asking some important questions, and then taking decisive action.

How do you know there is a real problem?

This may seem obvious, but you need to know from a very basic standpoint if there are serious issues brewing in your business  as soon as possible. A cash pinch could be a serious warning sign.

Besides looking at your bank account balance, your Profit & Loss Report (also known as your Income Statement) is a quick way to identify the main issue(s).

Has there been a big dip in how much you’re bringing in in Sales recently? Do you compare your sales numbers on a monthly basis. Knowing your numbers helps you identify dangerous trends that could be emerging.

What about your expenses? Has there been a big increase in overhead over a short period of time? Or has the change in the economy caused some of your cost for making each sale to creep higher and higher?

Another question to ask is….

Do cash flow problems keep coming back?

Many businesses are seasonal and typically have a high season and a low season. If you’ve had a crunch like this before, you will want to compare your numbers to last year at this time. Did you have the same problem? Is there something you can do that would help to even out the cash flow?

For example, often landscaping companies will create another income stream in their off season (wintertime) by attaching a plow to their trucks and offer snow plowing services. Or accountants whose bread and butter comes during tax season, add tax planning or bookkeeping services to their service mix to help even out the slow times.

Your highs and lows may not be as obvious, but if you see a pattern, is there some other product or service you could offer that would sell well during your lean time?

Aim to build several sources of income to keep the money coming in build stability throughout the year.

How to handle the short-term issues and solve your cash flow problems for the long term

When in the midst of a cash crunch, what you need more than anything is more cash quickly. That can take the form of a boost in sales, or it can mean collecting the money already owed to you.

One the easiest ways to solve a cash flow pinch is to run a special promotion to pull in some quick sales. More short-term sales may not solve the real problem, but it will get you to a place where you can breathe and focus in rationally to identify what’s really going on in your business.

To solve recurring cash crunch woes, you can’t just live in the moment. You need to identify what has changed or is changing. You also need to come up with a strategy to protect yourself for the long term.

Here’s my three-phase approach for getting into action so you can conquer the cash flow monster before it gets out of hand:

1. Maximize the money coming into your business from as many different sources as possible, creating systems and policies that keep the cash streams flowing consistently and simultaneously.
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2. Evaluate what it costs to run your business and how much it costs to sell your products / services. Identify your most profitable items, and dump any that do not have a reasonable margin. You will also look at your overhead and identify any areas where cash is needlessly leaking out of the business (Hint: To do this right, you will want to review both your P&L Report and your Balance Sheet over the period of a year)
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3. Prepare a budget and a forecast for at least the next 3 months, and track your progress. If your business is seasonal, you will need to build into your budget a cushion fund that you will contribute to in the busy season, and draw upon in the slow season.

By going through these basic steps, your business will become much stronger. You will be able to recognize and navigate changes that affect your cash flow. You can protect yourself and ward off cash crunch crises before they ever hit.

Would you like specific strategies and step-by-step action plans to pull in more cash FAST and turn your business into a solid cash flow machine? Then be sure to check out my new Cash Flow Mastery Course.

If you are using any version of QuickBooks 2007 (or older), you need to pay attention to this.

Effective May 31, 2010, Intuit (the makers of QuickBooks financial software) will discontinue live telephone support and add-on services for QuickBooks 2007 software (all versions).

Services that will be discontinued:

Assisted Payroll
Basic Payroll
Enhanced Payroll
Standard Payroll
Employee Organizer
Merchant Service
Billing Solution (formerly QuickBooks Online Billing)
QuickBooks Email
Bill Pay
Online Banking
Terminal Download
Technical Support Plans and Services

This is not really surprising news, since according to Intuit’s official Discontinuation Program, they only support “the most current version of QuickBooks, plus the prior two versions.” So that means after May 31st, QuickBooks 2010, as well as all 2009 and 2008 versions, are the only years they will continue to support.

Do I HAVE to upgrade?

That depends on how you use the software.

If you are currently using an older version of QuickBooks and do not need any technical support or add-on services, you can continue to use the software as you have in the past. It will keep working just fine.

However, if you need to use add-on programs and support for services such as payroll or merchant services,  you will need to install and register a supported version of the QuickBooks software by May 31, 2010.

But what if I don’t know which version of QuickBooks I’ve got?

That’s easy. If you don’t see which version you have on the “splash” screen when you are opening QuickBooks, then from within the program simply press Ctrl+1 (from the keyboard, not the number pad) and you will get all the information about your current QuickBooks program, including which version you’re using.

An important reason to upgrade if you’re still using QuickBooks 2007 (or older) is because even though Intuit promises to help you out if you lose your keycodes or have licensing issues, their terms and conditions say they will do so only “if that data is available.” In other words, there’s no guarantee they can help you if you are still using an old unsupported version, and you lose your password, have data recovery issues, or need a replacement software CD.

This is significant.

If you are locked out of your data file because you’ve lost your administrator’s password, or you can’t get into your program because of a registration issue, you’re dead. Not being able to access your financial records could literally cripple your business.

But if you are determined to stick with an outdated version of QuickBooks and you do happen to lose your password, you can use the Automated Password Reset Tool available for free on the QuickBooks website. But of course, there’s no guarantees there either. You are still on your own.

If, however, you are ready to give in and upgrade, here are my best suggestions.

Your Upgrade Options

You can, of course, upgrade directly through the Quickbooks website and get a $40 discount (as of this writing, the upgrade price is $159.95)

But you quite likely can get a better price by shopping around a bit. Generally you’ll find QuickBooks at all the major office supply stores locally and online. Amazon is currently selling QuickBooks Pro 2010 for $123.

Some other places you could check out are:

www.staples.com
www.officedepot.com
www.officemax.com
www.bestbuy.com
www.costco.com
www.samsclub.com

And if you are a real bargain hunter, you might be able to find a legal copy of a supported version (QuickBooks 2008 or 2009) on eBay. But realize that you’ll be in the same pinch in another year or two.

So my best suggestion is to just bite the bullet and upgrade to 2010 and be done with it (for three years anyway). There are some great new, truly helpful features you’ve been missing out on in the years you’ve fallen behind.

Getting Up To Date Using QuickBooks

For quick and free mini-lessons in QuickBooks, make sure you get in on my QB QuickTips video series.

And if QuickBooks has always been a struggle for you, why not go all out and get some proper training on using the program more easily and efficiently? I’ll teach you all the must-know functions in QuickBooks in my QuickBooks Core Training course. (The next class starts this coming Monday, May 24th.)

If you are upgrading from QuickBooks 2005 or older, training is especially recommended for you, since QuickBooks is practically a whole new program since that far back. it won’t be an easy transition without some assistance.

We are already one-third of the way through the year. Have your revenue numbers been improving?

I came across some revealing stats recently that are quite eye-opening about what’s really going on with A LOT of small businesses. I made a quick video to show what the numbers are really telling us about what we need to be doing to turn it all around.

Click above to start video

This is important stuff for so many entrepreneurs. If you know someone who could benefit from this new information, by all means, go ahead and let them know about this video. They’ll appreciate it, and so will I!

www.CashFlowMasteryCourse.com

The major tax deadline of April 15th is quickly approaching for non-corporation businesses (sole proprietorships, partnerships and LLCs). Here are five quick tax-savings tips you don’t want to forget before the deadline arrives in all its glory.

1. Home Office Deduction

Generally, you can deduct business expenses that apply
to a part of your home if that part is exclusively used on a regular basis…

• -As your principal place of business,
• -As a place to meet with your patients, clients, or customers in the normal course of your trade or business, or
• -In connection with your trade or business if it is a separate structure that is not attached to your home.

This deduction includes both expenses that are directly related to your home office (painting, repairs, etc.), as well as a portion of your indirect costs, which include utilities for your whole house, mortgage interest or rent, real estate taxes, even depreciation on your home.

This can really add up to a substantial deduction.

And if you took the home office deduction last year, but couldn’t use it all (it’s limited by your business profit), you can also carry over any leftover deduction you couldn’t use last year and add it to this year’s deduction. (Check your 2008 Form 8829 and look to see if there is any carryover available for 2009 at the bottom of the form.)

The home office deduction is worth the trouble because it also reduces your self-employment tax amount.

Click here to get the details on how to take the deduction here:
IRS Instructions for Form 8829

2. Write off new equipment (Section 179 deduction)

Rather than depreciate business property over several years, you can choose to expense business assets in the year of purchase. Here are basic guidelines for what qualifies:

• Tangible property, like machines, equipment, furniture
• Off-the-shelf computer software

It does not apply to:

• Real estate
• Property used less than 50% in your business
• Property you inherited or received as a gift

You can “write off” (deduct as an expense) newly purchased assets up to $250,000 for 2009.

This is another smart deduction that helps to reduce both your income tax and your self-employment tax.

Click here to get all the specifics here:
IRS Instructions for Form 4562

3. Use Per Diem Rates for Business meals & incidental expenses while Traveling

As long as you can document your away-from-home business travel, you can deduct a per diem rate (per day) for meals and incidental expenses instead of the need to keep records of and report your actual expenses. This can give you a much bigger deduction if you spend less than the daily rate, not to mention it makes the recordkeeping easier.

Of course, you only get a 50% deduction on meals and entertainment for business purposes, but if you’re frugal, you will still get a much better deduction than you would with claiming actual expenses.

And, yes, this one reduces both income and self-employment taxes.

Click here to get all the specifics here:
IRS Publication 1542

4. Maximize your HSA Contributions

If you have a high-deductible health plan (HDHP) for your health insurance and a Health Savings Account (HSA) for your out-of-pocket medical expenses, you have until April 15th to make your 2009 deductible contributions. That’s up to $3,000 ($4,000 if you are over 55) for a self-only coverage plan, or $5,950 for a family coverage plan.

While this one won’t reduce your Self-employment tax, it is a nice deduction in addition to any self-employed health insurance deduction you can take for what you paid in insurance premiums on that high-deductible haelth plan. This winning combination makes 100% of your medical costs deductible, even if you do not itemize. That’s sweet.

Click here for all the specifics are laid out here:
IRS Publication 969

5. Maximize your IRA Contributions

If you have a traditional IRA, you can still make your 2009 contributions up until April 15, and still claim any deduction you are entitled to (usually for a traditional IRA as opposed to a Roth IRA) now. This is an especially smart choice because when you make contributions to your retirment accounts, you will likely also get the retirement savings contributions credit (depending on your income level, among other things). It’s one of the very few times you can legally get a double-dip for a deduction.

General traditional IRA contribution limits for 2009 are:

$5,000 ($6,000 if you’re over 50 or older) – there are, however, several factors that affect how much of your contribution is deductible.

As a self-employed person though, you may seriously want to consider opening a SEP-IRA, since this type of retirement plan allows you to make larger contributions and thus get bigger deductions on your tax return.

IRAs have lots of twists and turns, but if you already have one set up, or want to set up a quick traditional IRA (you can do this easily) and make a contribution for 2009, it’s just smart to max out your contributions and take the deduction for 2009 by April 15.

Click here to get all the ins and outs of IRAs here:
IRS Publication 590
IRS Publication 560

To keep your tax bill as low as possible, the smartest choice is to do your tax planning BEFORE the end of the year. But at least these tips will help you pay as little as legally possible right now for 2009, and then be all the wiser for 2010.

Most businesses have at least a few ways to accept payment from their customers. It may be in the form of collecting cash, debit or credit cards, or by check, either up front, at the time of delivery of the product or service, or sometime after the sales transaction has been completed.

But more and more businesses, like everything else, are collecting their payments online as well. How about you? Have you jumped on the online business bandwagon yet?

On the Internet, nearly everything is faster. Collecting your money online is no exception. And that’s a great reason to accept payment from your clients online as well.

What Are Your Options?

Being paid for products you sell can be handled with the help of an online shopping cart. Payment is usually made using a credit or debit card, and products are delivered either electronically or via postal mail.

And now, even if you sell services, you can make it very easy and convenient for your clients to pay you too. In fact, with online services like PayPal, you don’t even need to have your own merchant account to accept credit cards and electronic checks.

But the latest development I’ve stumbled upon for collecting your money online is a new, free service provided by Intuit, the makers of QuickBooks. It’s called Intuit Billing Manager.

It is an ideal service for service professionals who are just getting their business rolling. While I’m obviously an advocate of keeping complete bookkeeping records, using a program like QuickBooks to handle both your bookkeeping and your invoicing function, if you want to just jump in and get your business rolling and pulling in payments from your  clients, this is an easy and economical way to do it.

How Does It Work?

Now I’ll tell you up front, this free online billing solution is Intuit’s way to entice you to sign up for their Merchant Services. But it’s certainly not necessary to sign up for a merchant account, and they really are making it easy for the little guy or gal who operates what they call a “micro-business” to get their billing organized and functioning well – for free.

As the name implies, it is a way to create and manage your invoicing. With a free account you can…

• Easily create professionally designed estimates, invoices and billing reminders

• Print out your invoices for postal mailing, or send them by email

• Manage your customer information

• Use the service from anywhere you have web access, including an iPhone

If you want to accept credit card payments or electronic checks, you will need to upgrade to their merchant services for Billing Manager, but as of this writing, the rates are more reasonable than a regular Intuit Merchant Services account, with all the capabilities needed for a very small business.

If you’re just getting your business going, or if it has been a challenge for you to get your invoicing done and keep them organized, I highly recommend you use this new online billing program.

You can’t beat the price, and it really doesn’t appear that there are any sneaky back-door ways for them to suck you into a commitment you don’t want down the road. But when you are ready for a full-fledged bookkeeping program, you can easily export your Billing Manager information into QuickBooks Online Edition and grow from there.

And of course, the sooner you get your invoices sent to your clients, especially if it is handled via the Internet, the quicker you will get your money. And in this economy, faster cash flow is what will grow a stable business that lasts.

By the way – If you want more tips on not only maximizing your Accounts Receivable procedures, but kick-butt strategies for maximizing your business cash flow in the new economy. Go to the Cash Flow Mastery course website now.

Bonus Resources

Review of Intuit Billing Manager by PC Magazine

Intuit Billing Manager Fact Sheet (2009) – Please note that the services included in a free account have been expanded since the publication of this fact sheet.

Q: “Gabrielle, I’m in the market for bookkeeping services. Any suggestions for what to look for and what to expect in pricing?”

This is a typical inquiry I receive through my website. And for good reason. It’s a great question! Let me tell you why.

Doing the bookkeeping in your business won’t make it an amazing, profitable success. But NOT keeping up with the books properly, or not keeping track of your finances at all, can definitely kill your business. That’s why sooner or later, most entrepreneurs realize that it makes sense to get someone else to handle their books for them.

But that’s easier said than done.

When it comes to hiring a bookkeeper, whether in-house or virtually, there are many choices. The most popular options, however, can cause you BIG headaches and cost you thousands unnecessarily.

The biggest problem: Hiring someone who is not competent enough to handle the job.

Yes, you may already have QuickBooks software (admittedly designed for non-accountants) and a willing wife / girlfriend / friend of a friend who is ready to do the “data entry” for you. But that does not mean that you can simply hand over your financial information and get on with running your business. At least not without some nasty consequences down the road.

In fact, even if you search for and find someone who claims that they are a “qualified” freelance bookkeeper, you are not guaranteed clean financial reports for management, and accurate tax reporting. It’s just not that easy.

The scary reality is that anyone can call themselves a bookkeeper, and proceed to really screw up your books…and your business. I see it all the time. My clients pay me thousands as a QuickBooks consultant to come in and untangle their financial data after they’ve tried (unsuccessfully) to do their own bookkeeping, or hired a so-called “bookkeeper” to do it for them.

So, what’s the answer to the question above on what to look for when hiring a bookkeeper so you can save yourself from all the potential heartache?

Ask Questions, lots of them.

Just because someone says they run a bookkeeping service business or that they use QuickBooks doesn’t mean that they are qualified to do so.  Be proactive and ask the following questions:

* What training or experience do you have with double-entry bookkeeping? How do you keep your skills up to date?

* Do you hold any certifications for bookkeeping and/or QuickBooks?

* What type of businesses do your clients have? Are you familiar with my type of business or industry? Can you provide references?

* How do you handle transactions that are incomplete or unclear? (HINT: You do NOT want someone who simply codes everything to a “miscellaneous” account. They should be proactive, communicative and have a system for gathering all the needed information, taking responsibility for preparing complete records.)

If you are considering an in-house employee, I also recommend that you give that person a test to assess her skills. Don’t just accept whatever is listed on the resume. The American Institute of Professional Bookkeepers has a free test available for employers through their website (see Resources below).

What about pricing?

The cost for hiring outsourced bookkeeping services can run anywhere from around $25/hr. to $75/hr. or higher, depending on your location, the services provided, and how they are administered (on-site, virtually, or online).

When it comes to bookkeeping services, however, price is not always an indication of quality. If the most important factor in your decision is low price, realize that you may be setting yourself up for a mess that will cost much more to clean up later. Pay closer attention to true qualifications than the hourly rate.

If Your Budget is Too Tight and You Need to Do It Yourself

QuickBooks is the best software choice because of the user friendly interface. But you need to understand the key basics of the program to use it correctly. So you will need to investment in education.

There are inexpensive books, videos and in-person training classes available. Use what suits you best, just don’t wing it. Get the training needed to handle the basics adequately, or you will have problems later.

The investment you make now in starting the new year off right, whether by hiring a qualified bookkeeper or by learning how to do it right yourself until you can hire someone qualified, will give you a solid foundation for building and managing a solid, profitable business.

It’s just a smart choice.

Resources:

Where to find freelance bookkeepers:

QuickBooks ProAdvisor Database

American Institute of Professional Bookkeepers

Craigslist.org

Bookkeeper Hiring Test (for screening an employee):

QuickBooks Online Video Training:

QuickBooks Basics: New User Essentials

QB QuickTips Video Blog

This year is quickly coming to a close. It’s been a choppy one for most small businesses, especially in the cash flow department. How about you? Well I’ve got some good news for you.

There’s still time to make this year go down easy and pull in some fast cash. Here are five fast-results tips to boost your bottom line and end the year in the black.

1.  Ask for your money.

This the best time to start cleaning up your books and get caught up on outstanding invoices. Review your Accounts Receivable summary report and determine who owes you what. Then send out statements right away to remind your clients that they owe you.

With any luck, they’ll be in the process of cleaning up their books too and be glad to pay you to get all the tax deductions they can find.

If you’re already sending out statements regularly, encourage the slow pokes to pay you by credit card. They’ll still get the tax deduction for this year, and pay their credit card off later. But the point is, you’ll get your money now.

If you don’t already have a merchant account in order to accept credit cards, get a free PayPal business account. It’s fast and easy.

When all else fails with slow payers, simply pick up the phone to give them a friendly nudge. Getting in touch personally will not only remind them to pay you, but you may remind them that they’ve been meaning to contact you about additional products or services they need. So you may even get additional business out of the deal.

2.  Require a deposit on new projects.

If your slow-paying clients are looking for additional services or products, it’s the perfect time to implement a new policy. Start collecting deposits (also known as retainers) on new orders.

Starting with your slow payers is a great way to weed out the deadbeats. They won’t go for it. But your best clients (those who appreciate the value you provide) will.

Start charging a 25%-50% deposit up front on all new projects coming in. You will be amazed at how little resistance you will encounter both from new and existing clients. By doing this, you raise your clients’ perception of your professionalism and repel those who don’t truly value your services.

Don’t apologize. Just do it!

My own clients and colleagues who have had the courage to follow my advice on this higher standard are usually surprised by how easy it really is and the immediate increase in cash flow it ignites.

This tactic seems riskier than it really is. If you take the leap of faith, you’ll see an instant increase in cash flow and build a higher quality customer base.

3.  Stay in touch, run a special and ask for referrals.

Are all your clients aware of the different services (or products) you provide? Send out a year-end newsletter by snail mail and even include a small gift for your best clients.

Be sure you let them know about anything new that’s going on in your business, such as your new Web site, a new service offering, or specialized products you now carry. Include a card that lists all your services and products, along with your contact information for their easy reference. You want them to hold onto this information and keep it handy.

Consider running a special end-of-the-year promotion, or make a special offer to your best clients to encourage a final burst of sales for the year.

Tell your clients how much you enjoy working with them. Mention that you would love more clients just like them, so you’d welcome any referrals they could send your way. Offer a reward as a token of your appreciation too. Usually a small gift card will do the trick.

Just reminding your clients about who you are what you do will usually bring in some business. It will also alert them to the idea of sending you referrals. They won’t know unless you tell them.

4.  Invoice promptly.

I’m often amazed at how often I’ve seen my clients delay in sending out their invoices for services rendered or products delivered. That’s dangerous, especially in this economy.

Ideally, make it a practice to deliver your invoices along with your products or services. But if that is not practical, do it as soon as possible thereafter. Have  a set schedule / procedure to handle all your invoicing promptly.

The longer you wait to send out your invoices, the longer you’ll wait to be paid (and the less likely that you will get paid). Don’t let your client’s “forget” how valuable you are to them. Invoice often and promptly!

5.  Prioritize based on cash flow.

Keep your day everyday focused on doing the work that will bring you the most cash in the least amount of time. That means, if you have several internal administrative tasks that need to be handled, but also two large client projects that are nearing completion. Do the client work first! It takes some discipline, but the rewards are worth it.

The sooner billable work is completed, orders are fulfilled, or anything else that brings cash into your business is done, the sooner your cash flow will increase.

Learn to delegate the lower priority tasks, or do them at a less productive time. Use your best energy on cash-pulling projects. You won’t regret the results that show up in your bank account.

By implementing these five strategies over the last few weeks of this year, you’ll not only boost your cash flow in the short term but build a stronger and healthier business, setting you up for a stronger 2010.

Resource:

If you’d like to learn how to build a simple system to boost your business cash flow year round, then you will want to take a look at my special report, Cash Flow Kick-Start.

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor who specializes in assisting Internet-savvy entrepreneurs to get control of their books and maximize profits. Get more information at http://www.BookkeepingDirect.com

Most entrepreneurs give little thought to the legal structure of their business, especially in the early days. But not knowing the risks of just “winging it” can come back to take a painful bite out of your bottom line. Even worse, it could put you at very real risk of losing more than your business, without warning.

Why your business structure is worth your attention

Usually the biggest reason to go into business is to turn a profit. And a lot of hard work is involved in building a profitable business, without a guarantee for success.

The difference between wasting your time and getting into big debt, or financial freedom and prosperity, has much to do with building on a solid foundation. Your choice of business structure is a key component when it comes to your business stability – now and for the long term.

What effect does choice of business entity have on your finances and business operations?

Fact is, your profits will be taxed based on your business structure. And, of course, navigating the applicable tax laws is no easy task. The government knows this, so most new businesses are, by default, the type of entity that generally pays the most in taxes – a sole proprietorship or partnership. Thank you Uncle Sam.

In reality, besides employees, taxes will often be your largest business expense, especially for service-based companies. So educating yourself about which business entity and it’s tax advantages are best for your situation can significantly affect how much of your profits you get to keep and how much you are forced to hand over to the government.

Your choice of business structure can also have a big impact on how you need to run your business. There are legal requirements that must be followed, depending on your choice of business entity. When these are ignored (and they often), serious consequences can raise their ugly head, some of which can put you out of business instantly.

Most often, business owners who pick some sort of corporate structure (with or without the advice of qualified professionals) don’t know what the requirements are, leave themselves without any liability protection. That’s a very scary, but extremely common scenario.

How can the risks be minimized sensibly?

The best way to avoid falling into these costly traps is education. Admittedly, understanding the different business entity choices (and there are many of them) is not an easy path to navigate for most of us. But who said starting and running a solid, profitable business was going to be simple? It doesn’t, however, need to be difficult. All it takes is some research to get the needed facts before making a smart choice.

How to make smart choices about business entity

Here’s my four-step action plan for getting the information you need to make a smart choice about the best business structure for your business sooner rather than later (or too late):

1. Know where your business is going. You should have at least a basic business plan laid out that describes what your ultimate goals are, how you’re going to get there, and include an exit strategy. Block out a full day or two on your calendar to either review or map out where you want your business to be in 3-5 years, and what it will look like when you’re “done” with it.

2. Educate yourself first about the different business structures available to you. This should be your own research via books, the Internet or any other means available for credible, unbiased information. Define your priorities (based on your business plan) and identify the basic advantages and disadvantages of each entity choice. Identify the business structure that appears to be best for your goals.

3. Engage a qualified professional. AFTER you’ve done your research, consult with either an attorney or accountant who specializes in small business and discuss your plans. Your objective is to start moving toward a definite decision based on what’s going to give you the best overall protection and tax savings (as well as other key considerations) for your unique business situation.

4. Make it happen. Lay out what needs to happen next to implement your plan to build or  maintain a solid foundation for your business success. Then put it on your calendar and do it!

Take-Action Resource

Straight Talk About Business Entities – multi-media training that investigates the different entity types, their tax advantages and disadvantages for making an informed choice based on your own unique business situation and priorities

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WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the author’s bio and link

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Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor. She specializes in assisting Internet-savvy entrepreneurs get control of their books and maximize profits. Gabrielle also publishes the business-boosting online ezine, Smart Money Choices. Get more information at http://www.BookkeepingDirect.com