## Initial Mark Up And Gross Margin

What is Initial Markup?
Initial Markup (IMU) is the difference between the cost and selling price of an item when it is first introduced for sale. It is also called Initial Mark On, Markon or Markup. The formula for this calculation is: Selling price – cost = Initial Markup Dollars. If a buyer brings in a new line of jeans with a cost of \$25 per pair and initially prices them to sell at \$55 per pair, the Initial Markup is \$30.

Selling Price – Cost = Initial Mark Up Dollars
Initial Markup is normally expressed as a percent. The Initial Mark Up %, for the above example, based on the retail selling price, is 55% (calculated as \$30 / \$55). The IMU% should always be based on retail dollars, not cost dollars as some retailers and software programs too often do. After all, you own a retail store and record sales at retail. Your sales goals are expressed in retail dollars. Plus, net sales, at retail, are used as the basis for expressing account amounts from the financials (For example, what percent is your Occupancy Costs actually means what percent of your net retail sales are dedicated to Occupancy costs.). Use RETAIL.

An initial retail price must obviously cover the cost of the item, and any selling expense associated with the item. It also must cover a portion of the store’s day to day expenses for rent, fixtures, insurance, utilities, etc., also known as overhead, as well as leave you some profit. Stated another way, Initial Markup must be enough to cover Planned Markdowns + Planned Profits + Selling and Overhead Expenses. The Selling Price covers all that plus the cost of the item.

What is Gross Margin?
Gross Margin (also called Maintained Margin or just Margin) is related to actual sales. It is expressed as a percent of Net Sales. Gross Margin is the difference between Sales and Cost of Goods Sold. (Net Sales – Cost of Goods Sold = Gross Margin Dollars.) Gross Margin is always based on Net Sales and is always expressed from a retail viewpoint. Initial Markup addresses the aspect of price for merchandise: “How much can I get for this ___________?” Gross Margin answers the question: “How much did I make on this __________?”
Impacts on Initial Markup % and Gross Margin %

Many factors affect how retailers decide just how much Initial Markup will provide the best return on their investment. Things that affect Initial Markup are Brand, Competition, Market Saturation, anticipated Markdowns and perceived customer value to name a few. Perceived value is often most difficult to pin down. Occasionally there are certain labels that seem to perform magic when it comes to moving merchandise. A perfect example-Tickle Me Elmo (Tyco) in 1996-was a slow seller until being featured on an afternoon talk show. “In the weeks leading up to Christmas, Tickle Me Elmo dolls were in such scarce supply that ads cropped up in newspapers asking for as much as \$2000 per doll.” The Brands (both the talk show and Elmo) were magic. Competition kept the prices up. Low Supply kept the market from becoming saturated. But, customer perceived value kept the prices unbelievably high.

Another major impact is Markdowns. No matter what your Initial Markup is, if it isn’t great enough to cover your planned markdowns and expenses, you will give up your profit to make the sale. When an item doesn’t move, most over-worked and stressed out retailers will take the path of least resistance, and take a larger markdown and keep taking those markdowns until the offending merchandise is gone. Some will keep the poor seller, hoping for the one customer who will come in “someday” and purchase that saved item… if that customer ever arrives and if you can find the item when he does. If Markdowns are higher than anticipated, net sales will be lower, and therefore, gross margin, a.k.a. Maintained Margin, or just Margin, will also be less. Brand, competition, market saturation and perceived customer value also affect Gross Margin–just like Initial Markup.

The Finer Points of IMU% and Gross Margin
It does not follow that each class of merchandise will realize the same IMU % or the same Gross Margin %. Each class and each style within a class (or category) is as unique as each vendor. Competition, pricing structure and perceived customer value may make it necessary to deviate considerably in actual IMU% and GM, but make a point to plan for your profit as well as you plan sales, markdowns or expenses. You want to make sure that you are achieving your Gross Margin plan at the store level, even though some classes may fall far short. The Gross Margin for other classes needs to be high enough to make up the difference for the lower performing classes.

For example, if your Initial Mark Up is 58% and you plan a 9.5% Markdown rate with a goal to maintain a 54% Gross Margin, you can use a “cost multiplier” of 2.40 to achieve your goal. The Cost Multiplier is a number you can multiply the merchandise cost by to achieve the desired Gross Margin percent. An item that Costs \$20 will carry an Initial Price (Cost + Initial Mark Up) of \$48 when using the 2.40 cost multiplier. If you plan Markdowns of 35% and require a Gross Margin of 54%, merchandise will carry a 66% IMU, using a Cost Multiplier of 2.95 to achieve the same 54% Gross Margin.

Markdowns do not affect IMU% after the initial price is set. The Initial Markup is what it is. However, Markdowns have a huge effect on Gross Margin %. Markdowns decrease profit. It doesn’t matter how much an item is marked up, if it must be marked down those markdowns come from your Gross Margin. Of course, the reverse is also true. When you bring in that unique item that your customers must have, you may not need to take planned markdowns. Then you get to enjoy your higher profit.

Ways to Increase IMU% and GM
Of course, you can just raise your IMU%, but if you raise it too much above the competition, you will lose sales. If you sell popular items that your customers feel a need to own, you may have lower than planned markdowns resulting in a higher Gross Margin. Another good way to boost both the IMU% and the GM is to make a practice of holding some money back from your Open-To-Buy when shopping and plan to rely on some in-season purchases to see you through. Generally, in-season purchases delivered immediately allow for a higher IMU% because you pay less for them.

Another thing we recommend is joining a Buying Group. Buying Groups have benefits for their members to save them time and money. Also, when you go to market, look for a new vendor or two to try. Generally, your customers value individuality as much as you. Give them some items to pick from that set you apart from the pack when possible.

If you feel there is little excitement for your inventory or it is developing “sameness” in appearance, try a different market. All vendors do not go to every market and by going to a new market you may be able to find just what you want. New vendors may offer a unique appearance in color, fit or style that appeals to your customers. Look for merchandise keeping with your quality line that offers a higher markup.

Using an Open-to-Buy is a great way to plan, record your actual results and then check yourself to see how you are doing as the year progresses. It can also help to prevent the high markdowns needed to clear out excess inventory.
———–
Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite Controller, CFO, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

## The Definition of Success – Having to Hire a CFO to Manage Finances

A small business owner is usually a lone entrepreneur who starts a company on a dream, sweat, tears and hard found money. Then it takes a dream, sweat and tears to use that hard found money to invest in the business and make it turn a profit. Once the business finds some equilibrium and starts making money, this may be the time for the business owner to examine the complexities of success. It is probably time to seek small business financial help by hiring a CFO or a Chief Financial Officer.

Once a small business passes over the threshold of making money, becoming successful and sustaining a position in the black, it is time to turn over the financials to a professional who can handle all revenue and expenses and provide accurate and timely taxes to the IRS, get bills paid on time and prepare budgets and business plans. By this time, it is important for the business owner to focus on marketing for more business and it is the CFO’s responsibility to keep an eye on cash flow, profits and expenditures. Meanwhile, the CFO can assist the CEO in tracking investments so that the return is profitable. And what about financial statements? In many cases, the CEO is happy that at last, someone else will take care of a daunting task.

Reporting and paying taxes is crucial to small business financial help from a CFO who monitors and manages a company’s finances. Having accurate and timely financial and accounting information facilitates making better management decisions for expansion, obtaining loans, forecasting profitable growth and keeping the company in check.

Can a small business afford to pay a full time CFO? In most cases, the answer is no. CFOs are generously rewarded for their expertise and hard work and the salary reflects their qualifications and capabilities. But there are CFOs that act as a contractor/consultant on a part time basis. Instead of reporting to the office every day, a part time CFO will provide reports, statements and monitor the company’s fiscal health a few days a week or a few weeks a month.

When small business financial help comes in the form of a CFO, think of it as a gift rather than an expense. A CFO brings a level of achievement to move your company from one level to the next one. Along with the CFO’s cache, a high level of integrity, confidentiality and great service will navigate your company to success. The CFO understands how to guide your company through the financial and administrative maze for making educated and informed decisions.

It is the CFO who can help steer the business through any financial crisis. It is the CFO who sounds a warning when there is the slightest hint of a treacherous iceberg blocking the path of success and profitability. When hiring a CFO, the business owner must place all trust in the hands of an expert to achieve internal operating goals, maintain business integrity, making it work.

Article Source: http://EzineArticles.com/3315646

Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite Controller, CFO, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

## Part Time CFO And Controller Services – 5 Ways Outsourcing Can Change Your Business

By Terry L Mickelson

Small companies often face similar financial challenges to those of larger companies. Many reach a point in company growth where the expertise of a financial professional is needed, but are unable to afford a full-time CFO. With a part-time CFO, you receive the benefits of financial help at a much smaller financial commitment than hiring another full-time employee. Along with saving both time and money, you’ll be able to focus on where your company needs you most. A part-time CFO can help you:

1. Receive accurate financial information. Many companies’ financial statements are filled with incomplete or inaccurate data, making it almost impossible for business owners to choose right for their business. A part-time CFO uses up-to-date accounting standards, giving you the key profitability information needed to make vital decisions for your business.

2. Spend more time with customers. Spending time with current and future customers is not just a luxury; it is essential for a profitable business. If you are not spending time with your customers now, then your competition is. By taking care of HR functions and accounting; a part-time CFO can free needed time so you can focus more on your customers and growing your business.

3. Get more money from banks or vendors. Banks and vendors are looking for financial statements that follow correct accounting standards, look professional and highlight key information. Create the professional financial statements you need to improve your company image and receive better terms with banks and vendors.

4. Discourage employee dishonesty. Many business owners have been shocked to learn how much stealing can go on within a company. There are many different types of theft such as; theft of money, customer lists, inventory and more. A part-time CFO can help discourage theft by establishing control and keeping you more aware of what going on inside your company.

5. Manage your cash flow properly. Lack of planning can often cause unpleasant cash flow surprises. Don’t address only the ‘squeaky wheel’, or let your company only ‘exist’ from month to month. By correct planning, using cash flow management solutions and securing needed financing, many cash flow issues can be reduced or even eliminated.

All companies face large challenges, but with the help of a part-time CFO big obstacles such as getting more money from banks and receiving accurate company data can be simplified and handled properly. By aiding in better cash flow management, discouraging employee dishonesty and freeing more time to spend with customers; CFO services can help your company succeed.

Article Source: http://EzineArticles.com/1678331
———————

Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

## Standard Cost Accounting in Determining the Estimate Versus Actual

By Victor Viser, Ph.D.

Cost accounting in manufacturing answers the simple question: “Am I making money on this job, and if not then why not?”. Cost accounting is a bridge between financial and management accounting and is a technique used to address the demands of both. It is a systematic application that takes all events in the supply chain and translates them into financial values for analyses by various people both inside and outside the company operations. The most important results of the analyses are findings by which management can reduce manufacturing costs while improving profitability, especially in the multi-sequence operations of manufacturing. While there are several ways to approach cost accounting (e.g., activity-based, throughput, etc.), the generally accepted accounting principles most in line with manufacturing operations are standard cost accounting and weighted average cost accounting. In both standard cost and weighted average cost accounting, managers can best assess production profit results as they are related to a formula for the “standard cost” of manufacturing a product.

In general terms, the computation of manufacturing cost involves many methods and techniques to define the components of cost, as well as determining what will be the basis of cost measurement such as historical cost, market value, and/or actual cost. For managers, the simple point of cost accounting is to determine why production costs are different than what they were planned (or estimated) to be, and then to take the appropriate corrective action. In an integrated enterprise resource planning operation (ERP), where work orders, shop floor routers, and travelers define the job sequencing for a generated sales order, each aspect of the sequence is reviewed in terms of actual versus estimated cost to attempt to discover those production steps than are deviating the most from the planned cost. In focusing so closely upon the production sequence, each and every step can be macroanalyzed in terms of cost as it is related to variables such as volume of output, material, and labor time for production.

For example, to discover actual versus estimate discrepancies in a particular work center or production sequence, management can look to things such as scrap piece counts, set-up times/cost, and material costs as they concern specific sequences. As such data is accumulated, it is easier to come to an understanding as to what specific aspect or sequence in production is costing more than the estimate, and why it is doing so. For those manufacturers utilizing more robust ERP software systems, managers can quickly and easily see actual dollar costs against individual production activities, as well as finding opportunities to streamline operations and reduce costs. If needed, as a result of cost accounting a manager can even determine whether they should eliminate the entire production activity, especially if there is no value added or profit to be made.

With accurate and regular job cost accounting facilitated by ERP software, the modern manufacturer gains a competitive edge through the routine maintenance of cost efficiencies. Indeed, as corrections, as a result of cost accounting, are made in the production system to alleviate inefficient or non-profitable sequences, actual costs come into closer alignment with estimated costs, and in doing so provide a more predictable bottom-line.

Article Source: http://EzineArticles.com/?expert=Victor_Viser,_Ph.D.

We provide part-time offsite and onsite Manufacturing Cost, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, QuickBooks Training, Accounting, Cost Accounting, Controller and CFO Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist.

Microsoft Great Plains Authorized Real World Consultant.

## Strategic Planning for a Small Business – Overcome the Challenges

WHY PLAN?

Things are ok. But how do you know you are thinking BIG enough? Are you leveraging the strengths, interests and talents on your team? Will you wind up in a place that will make you happy? What exactly is the best game plan? It is not that you haven’t been thinking about these questions. The business environment is complex and the choices are daunting. How do you answer the hard questions?

For the same reasons that pilots use maps when they fly cross-country and chefs follow recipes, it makes good sense to work towards organizational and personal goals with a written plan. One can operate without a plan, and many do, but the results probably won’t be optimal.

A strategic thinking and planning process can help to create a framework where you take control of the business, instead of sitting back and watching the business taking control of you. For many, the process of planning (thinking, discussing, researching and analyzing) is even more useful than the final plan. A planning process can help to sharpen a vision, evaluate alternative paths, build common understanding and commitment, balance dreams with reality, and transform uncertainty into action.

SOUNDS GOOD BUT MOST SMALL BUSINESSES DON’T PLAN

Although there is a lot of research correlating success with planning, it probably won’t surprise you that the majority of small businesses don’t have a written strategic plan. The reasons why are varied but some common themes include: “It’s not the best use of my/our limited time”, “planning takes away flexibility”, “there are too many uncertainties”, “we have a business plan”, “building consensus is too difficult”, and “it will cost too much”.

These are all real concerns, especially to the small business owner. The dichotomy is that the very reasons why organizations avoid planning are the same reasons that planning can be so effective. Let’s take a look….

TIME- “We are so overwhelmed – hiring, making sure our customers are happy, getting new products out – we just don’t have time to think about next week, forget about next year. Somehow, the future will just have to take care of itself.”
Thinking versus action provides a dilemma for many professionals. We are action oriented. When we are doing something, we feel productive. When we take the time to think, we feel unproductive. We need to do both. Without investing the time and effort to think about where we’re headed, it is likely we won’t get there.

When we become so involved in the day to day that we risk losing perspective, it is time to step back. If we stay mired in the trenches, the easiest solution is often implemented, not the best one. Planning takes time, but it leads to a focused use of the limited time available.

FLEXIBILITY- “We like to stay open to opportunities as they arise.”

Creating a strategic plan doesn’t mean that your business can’t be flexible. A plan sets the foundation so that when things start changing; there is a baseline from which to evaluate new opportunities.

Out of strategic planning come decisions like: “we will approach this target market, not that one”, “we will offer these products or services, not those”, “we will accomplish this objective before anything else.” Written plans demonstrate that careful consideration has been given to the future. It is easier to make these kinds of decisions strategically with a longer-term view. When things get stressful, it becomes difficult to see all of the options well enough to make educated decisions.

“We have a basic idea of where we are headed, why write it down?”

Unwritten goals are simply thoughts that will change as often as your opinions change. The act of writing out goals helps to clarify them and can provide an objective way of tracking them against actual results. Magic happens when you put goals on paper, they start to become real. You begin to make commitments, and are open to opportunities you may not have noticed before.

UNCERTAINTY- “Strategic planning is a business school concept developed when people thought they could anticipate and predict the future. How can we plan in a world that is highly uncertain?”

Uncertainty is a real issue in forward planning. However, putting our heads in the sand probably isn’t the best solution. Most organizations have their strategies, structure, and service offering challenged on a regular basis. To remain successful it is vital to ask the following strategic questions on a regular basis:

Where are we now? Where are we going? How are we going to get there?

Strategic planning helps a business evaluate market opportunities. To do this effectively, the process includes collecting and analyzing information about the business environment, understanding internal strengths, and developing a set of ‘key assumptions’. Optimal strategies are designed based on all of these factors. As the environment changes, so should our plans. One way to assess whether it is time to conduct a new strategic planning process is to check your list of ‘key assumptions’ on an annual basis to see if anything has changed.

I HAVE A PLAN- “I wrote a business plan when I started the business”

The act of strategic planning is often confused with a business plan. Business plans are usually drafted to obtain financing, then wind up filed away. The strategic planning process is an activity that is conducted every few years to evaluate opportunities, wrestle with environmental changes, build consensus, and to create updated goals. The output (a strategic plan) is a short working document that defines the positioning and future of the organization, with an action plan to get from here to there.

ORGANIZATION DYNAMICS- “I could never get everyone to agree on the best way to move forward. Anyway, shouldn’t it be my vision?”

An effective planning process will help to get people talking, and ensure that the business owner/CEO benefits from the ideas of his/her team. A good process is designed to build confidence, support and commitment among all involved. Even if only a limited group is included in the process, the completion of a strategic plan provides a great opportunity to communicate the company’s direction and core values to employees.

The use of an outside facilitator can greatly enhance the effectiveness of a planning process and keep the process on track. There is often a strong tendency of those participating to focus the discussions on today’s problems. An outside facilitator can help to broaden thinking and make sure that new ideas and directions are generated.

COST- “We don’t have a budget for planning.”

With all the activities that make up running a business, setting priorities in the context of a plan is important. Without a plan, the limited resources of a growing business will tend to be scattered in many directions, netting results that take longer and cost more.

What are your personal priorities? Is profitability, work/life balance, a motivated staff, or public recognition on your list? What are the personal benefits of achieving your goals? What are the consequences if you don’t?

If you are serious about your business, it is time to overcome the challenges to planning and start to soar. Don’t hesitate to enlist help. Stop thinking about a better future, TAKE ACTION!

We provide part-time virtual and onsite QuickBooks Training, Accounting, Cost Accounting, Controller and CFO Services to small and medium sized businesses.

Ask us for help – this is what we do.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

By Gary Farrell

Whether large or small, no matter what you sell, your business needs an accounting program that is reliable and accurate, allows for simple generation of reports and is highly functional. Enterprise Solutions from QuickBooks, designed for growing businesses, has the capabilities and flexibility to meet your business’ unique needs as it grows – and it could save you thousands in up-front and ongoing system costs.

QuickBooks Enterprise provides the key functionality you need with incredible ease of use. If you are a business owner or manager exploring the available solutions for improving the financial flow of your work, here are just a few reasons why you should consider this product.

Business Growth Support: QuickBooks Enterprise lets you scale up to 30 simultaneous users as your organization grows. Flexibility: The software is designed to work the way you work, so you don’t have to change your current business processes. This program lets you customize any of its 120+ built-in reports and forms such as estimates and invoices to look and work the way you want. Instant Access: Get real-time, instant access to the information you need to know about your business, when you want it and in the format you want it in, from Enterprises’ 120+ built-in reports, such as Forecast Overview, Forecast vs, Actual, Profit & Loss Budget Performance, and A/P Aging Detail. Functionality: Enterprise Solutions delivers all of the key financial management and accounting functionality you would expect from a sophisticated solution, including: G/L, A/P, A/R, Payroll, Fixed Assets, Job Costing, Budgeting and more.

———————

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

Contact us to inquire about our QuickBooks services; or to set up a free consultation telephone call.

By Tim Garrison

Many small business owners launch their business to follow a passion, whether that passion is writing, programming, Web design, art, sound & video, or any number of other industries. Your business begins to grow by word-of-mouth and soon, you’re hiring employees or independent contractors to take over part of your responsibilities rather than doing it all yourself.

Somewhere along the line, you grow large enough to hire a small business bookkeeper. Until now, you’ve managed your books yourself, either through QuickBooks or another bookkeeping software, or some system that you’ve devised yourself. Now, you’ve just gotten too big for this system to work anymore.

You hire a bookkeeper who understands financial accounting software and can manage your books on a full-time or part-time basis. This person could be an in-house employee, or maybe a local contractor. Or maybe you’re one of the growing number of smart business owners who hires an outsourced bookkeeper based in the U.S. who works virtually and communicates with you via phone and email.

Things go along well, but now that you’re not doing your own books anymore, you feel a bit out of touch with your company’s broad financial picture. Your bookkeeper can send you the reports and spreadsheets, but it doesn’t always make sense. You need someone to interpret all those numbers in boxes for you. Most importantly, you’ve grown large enough that you need a trusted financial advisor with the knowledge to help you make the best decisions for your rapidly growing business.

If you know anything about financial controllership, you might think a full-time financial controller comes with a 6-figure salary. And you’re probably right. Your business doesn’t have the budget for that — and it’s not what you need anyway.

You just need someone on a part-time basis to review your books with you monthly, provide checks-and-balances for your in-house or outsourced bookkeeper, and help you with financial planning and budgeting on a monthly or quarterly basis. If you think you can’t afford a financial controller, think again. Outsourced controllership services are less expensive than you may think, and will save your business money in the long run with better financial planning.

You may be concerned that, by hiring an outsourced controller, you’ll be giving up “control” of your company. That couldn’t be further from the truth. A financial controller provides you with the information you need to make the best decisions for your company — but all decisions remain yours. A financial controller doesn’t “control” your business. As a trusted advisor, he gives you the information you need to be more in control of your company.

Article Source: http://EzineArticles.com/7114727

———————

Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

## Alignment – A Foundation For Lasting Revenue Growth

Your ability to win or lose more business is about alignment – configuring and calibrating key aspects of marketing and sales execution to optimize revenue growth. What this asserts is that the extent to which the organization consistently meets revenue targets is directly proportional to the degree of alignment between the organization’s parts and its strategic priorities.

Sustaining top-line revenue growth is an ongoing challenge for most companies. It’s no secret that one of the most critical challenges facing every 21st century organization is consistently delivering against the #1 driver of long-term company success-top-line revenue growth. Over the past decade of working with CEOs to design and deliver better long term revenue performance, I’ve seen and see, that those unable to sustain success routinely lack much of a coherent or comprehensive plan. Moreover, their teams have little understanding of how it all comes together and what their roles are, and/or the sequencing of events in achieving future plans.

When it comes to alignment, perception and reality often differ. That said, most executives think their companies are aligned. Over the past few months, they’ve put plans in place to align the organization and focus their resources to achieve maximum growth. They’ve organized a series of group and one-on-one meetings throughout the organization to communicate key initiatives, priorities, and growth expectations and get everyone on the same proverbial page. They sincerely believe that they are leading well-aligned companies, with all members of the management team and every employee clear on the rationale behind the strategic plan and their own priorities and accountabilities to support the plan, with specific time frames articulated.

But the facts tell a different story.
• 85% of executive teams spend less than one hour per month discussing strategy. (Norton)
• 54% of executives say that company’s capabilities do not reinforce one another (Booz@Co.)
• Two-thirds of support units are not aware of corporate strategy or aligned with their own business unit’s strategy. (Norton)
• 60% of organizations don’t link budgets to company strategy.(Norton)
• 95% of employees claim they are not aware of company strategy.(Norton)

It’s clear that organizations may not have their resources as well aligned as they think. Managers would do well to ask themselves and their teams the following questions:
• Are we all synchronized and systematically working towards the same objective-driving healthy revenue growth.
• Do we know the big picture and where we individually and collectively fit into that process?
• Are we clear on the critical factors that drive growth, there dependencies and that we’ve providing proper context for daily decisions being made in support of those objectives?

Without alignment, it’s difficult-if not impossible-for workers in an organization to have context for the decisions they’re making. Alignment and context allow an organization to move confidently beyond its current state to its future desired state.

Alignment is such a simple concept; why is it so difficult to achieve? The importance of aligning the team is hard to dispute, and it seems logical and obvious. But when you consider that strategy is set by very few, maybe once or twice a year, yet the real work is done over a long stretch by many who weren’t in those strategy meetings, you start to see the issue. The workers who ultimately carry out the mission have little understanding about how that strategy was reached, and they had no input on whether they think the strategy is plausible given the reality of resources, budgets, and competition they see out in the field. The result is that most do not have proper context for making good decisions in their daily work.

When you think of all the possible decisions that are made daily, one or two bad calls might appear to have little impact in the overall scheme of things. Most leaders may never be aware of these tactical decisions, or only find out about them when review meetings take place after the fact. But collectively, over time, decisions made outside the context of the organization’s overall direction will drive inconsistency and have significantly negative impact, with little opportunity to recover. This can result in confusion and unnecessary chaos, ultimately reducing the odds for success while driving down productivity and draining morale.

Alignment can be the difference between business success and failure. CEOs struggle each day with new challenges and increased complexity both within their companies and in the external environment. The percentage of companies that have consistently achieved even a modest rate of growth of over 5% for 10 years or more has continued to drop, and the business environment isn’t getting any easier.

Why do some companies succeed where others fail? When you think about it, all companies have the same basic ingredients: unique products or services, value propositions, a marketing budget, managers, leaders, people, buildings, metrics, etc. But, within each organization, the system can’t perform to its highest levels unless its constituent parts are aligned.

Think of professional sports teams. They all have the same ingredients: players, managers, owners, equipment, stadiums, playbooks, the best athletes, etc. Each is a system that is trying to become more successful than its competitors. What brings success? Alignment of the constituent parts. This rule applies equally to championship sports teams, Ferraris, and corporations. For the latter, it means developing and implementing a strategic framework that is translated into specific objectives and measurable initiatives. This framework galvanizes, links, and governs the entire organization, bringing more consistent and repeatable high performance.

Hitting your revenue growth expectations is proportional to your team’s degree of alignment. What becomes paramount is how well the organization can become aligned in order to move faster, make better decisions, and ultimately win more than the competition. This will allow leaders to more successfully align and optimize the collective resources to achieve key initiatives. This is a critical step in becoming more consistent in winning more than your competitors and, as such, should be a managed and formalized process that executives focus on for the long haul.

Article Source: http://EzineArticles.com/7488684

We provide remote cloud based Accounting and Accounting Management services for users of Intuit QuickBooks Enterprise / Desktop / OnLine, Microsoft Dynamics GP, Passport Business Solutions, including Entries, Inventory, Consolidations, Payroll, Analysis, Reconciliations, Budgeting, and Financial Reporting.

We provide these services on an hourly / part time / as needed or project basis, to include Accounting, Distribution, and Reporting functions; remotely or on your hosted systems.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation experience (including QuickBooks, Intuit, Enterprise, Passport, Dynamics, Great Plains, RealWorld, Peachtree, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software), as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons.

Peter DeSmidt‘s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

We are headquartered in the Tampa Bay area; the majority of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

View our testimonials www.desmidtconsulting.com/testimonials.html

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

Microsoft Great Plains Authorized Real World Consultant

Microsoft Certified Small Business Manager Consultant

Contact us to inquire about our CFO, Controller, Accounting, Dynamics GP, Passport, or Intuit / QuickBooks Services.

By Nantaram Peggy

———–
Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite Advisory, CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

By Jon C Daiker

The role of Chief Financial Officer (CFO) -and the structure in which CFOs operate-varies significantly across organizations. Market complexity, revenue sources and budget size are important factors that drive how the CFO role is configured-and how the role evolves over time.

The past decade has seen dramatic changes to the role of CFO – an evolution from a “bean counter” who reported the numbers and controlled over-all costs to a dynamic, strategic member of the management team. The responsibilities of today’s CFO have gone well beyond the finance function as more time is expended on strategy and operating issues and less on budgeting and accounting. Increasing business pressures, government regulatory intervention, the tight economy and a need to measure the operating performance of a company in order to stay ahead of the competition has transformed the “green eye-shaded” CFO into a key business partner of the CEO.

An interim CFO can fulfill a vital role in keeping a company on track, both in terms of day-to-day operations as well as longer term strategic objectives during these transitions. According to The CFO Expert, Samuel Dergel, even if a company is truly serious about hiring their next CFO and makes the search a priority, it could take up to 3 months to complete the search. “Can a company afford to leave this position unfilled for up to 3 months or more”?

In order to answer that question, let’s look at some of the responsibilities of the CFO on which organizations have become very dependent.

Cash flow is of utmost importance for all companies, and a tight economy really exacerbates managing the cash flow situation. To be successful, today’s CFO needs to manage both sides of the balance sheet.

On the asset side, managing the company’s accounts receivable balance becomes critical. How many days’ sales are outstanding compared to a year ago, compared to industry standards, compared to the company’s best ever? Has the company’s aging deteriorated? What can be done to accelerate collection? How much will it cost? What has been written off and why? Does the credit extension policy need revision in light of economic conditions? No business can afford to lose sight of any credit extension factors and the collection of outstanding accounts receivable balances. Who is the key to all this? —-the CFO and the financial staff.

Again, on the asset side of the balance sheet, a potentially huge use of cash that needs to be managed is inventory level. In a tight economy, consumer spending habits change. In response, production output probably needs to be reduced. However, cutback production too far and sales may be missed. A lot of analytical work needs to be done by the CFO and the financial staff to understand which SKUs are moving on a regular basis and which ones have started to stagnate. If production is cut, what facility is most efficient and has the capacity to meet new needs? What are the economics of the labor agreements in the plants where downsizing would occur? No business can afford to lose sales, build inventories without demand or make bad decisions on plant cutbacks. Who is the key to all this? —- the CFO and the financial staff.

One last area of concern on the asset side of the balance sheet is capital improvements. Even in good economic conditions, capital investment decisions are somewhat subjective. There are always a lot of assumptions that need to be made and challenged. A tight economic environment only intensifies the decision making process. And when funds requested are for an intangible like software, assumptions are difficult to challenge and evaluate. No business can afford to forego ROI and Payback analysis at any time, let alone in a tight economy. Who is the key to all this? —- the CFO and the financial staff.

Turning to the right side of the balance sheet, accounts payable and accrued expenses can be an important source of funds from a cash flow perspective and require more scrutiny and management in tough economic times. Understanding vendor agreements and negotiating better terms are responsibilities of the CFO and the financial staff. No business can afford to leave a stone unturned if the goal is to maximize cash flow and minimize borrowing. Who is the key to all this? —- I think you know the answer!

One of the CFO’s primary responsibilities in all economic environments is ensuring there are adequate funds available through loans, lines of credit or equity. These agreements require continual monitoring to avoid default. Also, determining if market conditions are right for a refinance or equity offering are equally important. No business can afford to default – the market waits for no one, so be ready to refinance when appropriate. You know who is the key to these transactions.

The tactical responsibilities detailed above all support the day to day activities of cash flow management which by itself is a full time job. And that is before the control and reporting aspects of the CFO’s responsibilities are considered. When you add all the regulatory responsibilities that are now part of the CFO’s portfolio, the CFO is truly moving from “bean counter” to “jack of all trades”.

The CFO’s responsibilities go well beyond finance into balancing compliance and risk management with overall business performance. A CEO needs the CFO to take a leading role in shaping strategy that drives bottom line results while managing risk. Market conditions are continually changing and the CFO needs to recognize change as it relates both to control as well as business performance.

The executive team needs to seize opportunities as they arise. Understanding and monitoring evolving business drivers and developing models that portray the “what ifs” of new market conditions requires diligence as well as consistency. Management needs to know the deeper sense of how business will be affected by various scenarios. The CEO is no longer relying on marketing and business development to make these decisions without having applied the financial analysis tools of the CFO and the financial staff. No business can afford to approach these scenarios in a haphazard way, as a wrong turn could cost the company millions of dollars and a potential loss of market share. Who is better equipped to address these issues?

Increased business pressure and the tightening of purse strings are causing the CFO and CIO to work more closely together to leverage technology to cut costs and improve processes. The need for real-time operational and financial data and analyses is being demanded by management and the need to respond to the fast pace of today’s market conditions. Processes need to be streamlined to adapt to the ever-changing business and market demands to meet key business goals and improve the bottom line. Again, these decisions are more subjective and can negatively impact the bottom line if the appropriate analysis and due diligence are not performed. Here, again, you can’t afford to proceed down the process improvement path through technology improvements without the scrutiny and challenge of the CFO and the financial team.

With the changing focus of the CFO’s responsibilities and financial management in general, the CFO is becoming a strong business leader. More involved with the evolution of the company’s culture, concerned with the development and mentoring of the financial team, the CFO must now instill financial acuity into the whole organization. Assisting the CEO and other key management personnel with talent management is only the tip of the iceberg. Today’s CFO must instill a sense of confidence and credibility with all stakeholders….employees, customers, partners, business analysts, and shareholders.

———————

Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

## Microsoft Great Plains Dynamics – We Provide Remote Accounting Services In Your Hosted Environment

Microsoft Dynamics GP (formerly Great Plains) is a robust, reliable, and secure accounting system for small and mid-size businesses. For over 25 years, Dynamics GP has delivered comprehensive out-of-the-box business management functionality, from operations management and financial management to manufacturing and project accounting. Dynamics GP connects the many moving parts of your organization, giving you better visibility into and control over what’s going on in your business.

Microsoft Dynamics GP enables you to make smart decisions that have a direct impact on your bottom line – increasing margins and improving your cash flow. Simple to learn and to use, Dynamics GP works with your existing technology and scales as you grow to deliver long-term value.

Dynamics GP includes:
• Financial management and accounting
Manage your cash, assets, budgets, and banking—with built-in analytics and account-level security.
• Inventory management and operations
Track and manage your production, inventory, orders, returns, and vendors.
• Sales and service
Manage your sales, service contracts, and field resources.
Get real-time visibility and analytics to track performance and act with insight.
• Human resources and payroll
Hire, train, and pay your team with the help of complete employee profiles and evaluation tools.

We provide remote cloud based Accounting and Accounting Management services for users of hosted Microsoft Dynamics GP, Intuit QuickBooks Enterprise, Passport Business Solutions, including Entries, Inventory, Consolidations, Payroll, Analysis, Reconciliations, Budgeting, and Financial Reporting.

We provide these services on an hourly / part time / as needed or project basis, to include Accounting, Distribution, and Reporting functions; remotely on your hosted systems.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation experience (including QuickBooks, Intuit, Enterprise, Passport, Dynamics, Great Plains, RealWorld, Peachtree, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software), as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons.

Peter DeSmidt‘s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

We are headquartered in the Tampa Bay area; the majority of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

Microsoft Great Plains Authorized Real World Consultant

Microsoft Certified Small Business Manager Consultant

Contact us to inquire about our CFO, Controller, Accounting, Dynamics GP, Passport, or Intuit / QuickBooks Services.

## QuickBooks Help Save Small Businesses Money at Tax Time

Many small businesses use QuickBooks for their bookkeeping software. It is a fabulous way to maintain financial records in a convenient way, especially around tax time. If done correctly, your QuickBooks file should make tax time a breeze. However, if you have made small mistakes in recording throughout the year, you may be paying more taxes than you owe. Overpaying is never a good thing for a small business, so to avoid this situation you should have a qualified consultant review your files to look for mistakes you may have made during the year.

One way an error can happen when a business owner contributes their own money to their business. It happens now and then that you may have to use your money for a business expense. If this money is simply recorded as income, it will be taxed. This type of income must be specified as an owner contribution to the business within your QuickBooks file in order to avoid being taxed. Don’t make this mistake and find yourself paying tax on your own money.

Often, instead of giving money to use for your business, a business owner will loan money to their business. These are funds that will be paid back to the owner, possibly at a more stable financial time in the business. Remember, you only pay sales tax on income not on loans or contributions. Record this type of credit as loan so it will not be mistakenly taxed as income.

Many business owners use credit cards to make purchases for their business. QuickBooks is able to sort these charges and recognizes them as expenses for your business if they are recorded correctly. Suppose you purchase new office furniture from a superstore and simply record the total amount spent. QuickBooks needs to know what type of expense this was so that it could be correctly classified. This would be an office expense, and would be a tax deduction for your business. Take the time to specifically record credit card charges rather than just a one-time charge to your credit card company in order to receive accurate deductions.

QuickBooks also keeps track of how much sales tax you will need to pay to the state. However, if you have not recorded each of your income and expense transactions correctly, the sales tax payment may be too high. For each sale to customer, the amount of the tax must be recorded separately from the cost of the item. The amount you will pay to the comptroller will also need to be correctly recorded through the ‘Pay Sales Tax Liability’ window.

Finally, a common mistake people make both in business and in personal finance is incorrect recording of ATM or debit card purchases. It’s easy to swipe your card making a quick transaction and be on your way. It is crucial to record each debit or ATM use correctly. Think of it as each time you use a debit card, it’s just like writing a check and must be recorded just like a check would be.

Anyone who uses QuickBooks knows the value of this software. It makes the business owner or bookkeepers job much easier. However, it is always a good idea to have an experienced QuickBooks help consultant review your file at tax time to make sure you are not paying too much in taxes.

Article Source: http://EzineArticles.com/5146558

———————

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

Contact us to inquire about our QuickBooks services; or to set up a free consultation telephone call.

By Sara Johnston

Often small businesses are confused when deciding which is best for their company; an accountant, a bookkeeper, a CFO, etc. For most small to mid sized companies, the best choice is a part time CFO. You can benefit from all the experience of a CFO, without the commitment and added cost of hiring a full-time senior staff. Using a variety of financial planning tools they help map out a company’s future, on an affordable, as need basis. Choosing to hire a part time CFO can greatly benefit your company in many ways, such as:

1. Many are seasoned professionals with at least 20 yrs of experience in accounting and finance. They have overcome and learned from numerous challenges, have already experienced most problems your company faces and know how to help you run your business successfully. With a part time CFO, plans and strategies can also be tested in financial models before you risk implementing them in your company.

2. Using strategic, insightful solutions, they work as a member of your team to help you reach your company’s financial goals. They provide financial management at a significantly lower cost than hiring an in-house senior staff and should be seen not as an additional cost, but as a way to boost profits.

3. With accurate financial statements, a part time CFO helps empower business owners to better achieve their goals and control the direction their company is moving. By clarifying and enhancing your financial situation you will be able to see exactly where you are now and decide on future steps needed. You’ll be able to move forward confidently in the direction you want with a strong foundation under you, and anticipate company needs before future events occur.

4. Having accurate financial statements is critical when trying to obtain necessary cash from banks or other financial institutions. A part time CFO can help create financial statements that will help you feel more confident in your control over your business. When a lender sees the owner knows exactly what is happening, they will have confidence in that business and be more apt to provide the working capital needed.

Experienced and thorough financial management is vital to building a successful business. Part time CFOs are skilled at enhancing and assessing your financial situation and offer advanced, affordable expertise. By working as a member of your team, they offer strategic solutions to help you move in the right direction for your growing business and achieve long-term goals, with lasting results.

Article Source: http://EzineArticles.com/expert/Sara_Johnston/137485
———————

Our approach is to provide a definitive yet thorough assessment allowing you, and your company, to consider a broad overview of alternatives to manage the challenges and enhance the performance of your business.

In short, we identify opportunities, work with you and your organization, and enable you to take advantage of business potential and growth. The move to part time, on call, and virtual services has become more accepted in the business world over the past few years. For a fraction of the cost of a full time employee, a small business can have the Controller / CFO function filled by an experienced professional.

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

## Tips To Effective Working Capital Management

By Marcus L Jimenez

Working capital is the available cash on hand for the day-to-day operations of your businesses. And this can be affected by numerous factors, which include internal mechanisms and external issues.
Another factor that will have a huge impact on your working capital is the unwarranted focus on the task of coming up with excellent sales results. Oftentimes, this has a negative effect on your working capital performance. When your business operations marked seasonality and the requirements of your working capital vary from one quarter to another, there will definitely be a great chance for your working capital performance to be affected negatively.

Indeed, proper capital management will ensure that you maintain enough liquid resources for your everyday business operations. Proper manage will involve attempting to achieve a balance between reducing insolvency risks and maximizing your asset’s return.

How To Manage Your Working Capital

Create proper cash flow projecting – This process must consider the market cycles, the loss of a valued client, the actions done by your competitors, and the impact of all unanticipated events to your business’ overall performance. Moreover, you must also consider the unexpected demands of your capital.

Craft contingency plans for unexpected events – Regardless of how profitable your business is, you must always ensure that you are well-prepared in case unexpected events arises. You need to hone your skills in efficiently managing any uncertainty by formulating risk management procedures. Remember though to establish these procedures based on the objective and realistic view of your working capital requirements.

Use your working capital in a corporate wide basis – This is regarded as among the most effective capital management strategies because this will help make sure that your business’ cash on hand are utilized in various functions. This can be performed by using such cash from one place to another. Making sure that different aspects are in place is a great way of efficiently implementing this tip. These will include efficient banking channels, excellent linkages between production and billing, effective internal systems, information access, and good treasury practices.

Manage disputes properly – This can free up cash that have been locked in due to certain disputes to clients. Customer service can also be improved with efficient dispute management procedures. Most importantly, your business efficiency is expected to improve since you can begin to minimize operating costs via this tip.

Article Source: http://EzineArticles.com/expert/Marcus_L_Jimenez/1865448
———————

We are headquartered in the Tampa Bay area; a portion of our work is handled remotely, yet, we are able to talk, meet, and work with you on a regular periodic basis.

PETER DESMIDT has more than 48 years of accounting, cost accounting, and systems implementation (including QuickBooks, Intuit, Enterprise, Passport, RealWorld, Peachtree, Great Plains, Dynamics, Sage, Direct Systems, SouthWare, ACCPAC, and Computer Associates software) experience, as well as management positions with companies like Atlantic Richfield, Signode, Norlin Industries and R.R. Donnelley and Sons. Peter DeSmidt’s specific experience is as a CFO, Controller, Accounting Manager and Advisory Consultant. He holds a BA Degree majoring in Accounting and an MBA Degree majoring in Accounting and Computer Science. As we are a small business ourselves, we understand what it takes to get a small company off the ground and on the right track.

Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

We provide part-time offsite and onsite CFO, Controller, Accounting, Cost Accounting, Forecasting, Inventory Management, Cost Control, QuickBooks Problem Solving, and QuickBooks Training Services to small and medium sized businesses.

View our testimonials www.desmidtconsulting.com/testimonials.html

813-252-9490

Thank you,

Peter DeSmidt, BA, MBA, PA

Microsoft Certified Accounting Application Specialist

Microsoft Certified Installation Specialist

Even the most qualified managers can benefit from competent, objective feedback. We can help your company’s management team develop long-term objectives and specific strategies to facilitate your business’ future growth and success.

We can provide your business with small business consulting, virtual, interim and temporary accounting, controller, and CFO services, business and financial planning, CEO and COO support, project management, cost control services, strategic planning, business valuations, business start up advice, lease purchase analysis, and outsourced accounting services.

Supply Chain Consulting
Global studies suggest that many executives rate supply related risks as the top threat to revenue. We can help you minimize risks related to supply interruptions, security threats, weather threats, labor disputes and customer demands.

We instruct our clients on how to identify, manage and monitor supply chain risks resulting in process improvements and improved efficiency.

Strategic Consulting
Strategic planning is a management process for evaluating your current business, determining your strategic direction, and road mapping your strategic plan into practical actions. A strategic plan explains why an organization exists, what it is trying to accomplish, and the tactics it will take to achieve its goals and objectives.

We will develop the business planning and financial modeling necessary to formulate a forward-thinking, evidence-based strategic plan. We can help you develop your strategic direction and then focus on specific actions to put your plan into action.

Profitability Management
Profitability Management involves integrating the pricing objectives of often conflicting functional areas of the organization into a comprehensive plan to effectively set and capture prices.

We can help you attain the greatest value for your pricing strategy by developing an optimal pricing strategy, implementing effective pricing processes, measuring and controlling price at the transactional level and integrating technology with the processes utilize for your pricing strategy.

Cost Reduction
We implement and expedite cost-savings initiatives for all types of organizations. We combine a data-driven procurement strategy with market proven purchasing techniques to provide significant cost savings to our customers.

We specialize in using financial information to identify those areas of the business that provide the greatest opportunity for expense reduction and cost savings resulting in improved value for the organization.

Policies and Procedures
Many businesses fail because they have the right strategies but are unable to put them into practice because of failures in the processes necessary to implement those strategies. Whether your business processes are broken or in need of improvements we can help you break through your execution problems.

By analyzing existing processes, identifying bottlenecks and redesigning or improving the processes we can significantly reduce costs and improve satisfaction for all stakeholders in your organization.

Systems Consulting
When considering the installation of an accounting software system, you want to be certain to get the one that’s best for your business. We can provide your business with needs analysis, accounting systems design, chart of accounts design, software selection assistance, software installation, implementation and setup, financial statement design, file conversion, training, support, and guidance.

We can provide your business with product line profitability analysis, inventory and purchasing control, employee benefits planning and analysis, operations and office procedure documentation and advisory services.

We have over 45 years of Accounting, Management and Systems experience. Contact us for a free initial telephone consultation to discuss the immediate and long term benefits that we can offer you.

Ask us for help – this is what we do.