For businesses: how to reduce your money problems

By Guy McPhail CPA, PFS, CFP®, President of The GM CPA Group PC

With the current difficult economic conditions, the efficient collection of accounts receivable is becoming more and more important. Strengthening your collection procedures may allow you to shorten the aging days of your accounts receivable and improve collection rates.

Here are a few suggestions that can help your business tighten up its credit and collections policies and improve its cash flow.

Define Your Policy.

It’s important to have a clear credit policy. You should not sell to customers who are not credit-worthy, or who have become delinquent. Define and stick to concrete credit guidelines. You should also clearly delineate what leeway you and your staff have to vary from these guidelines in attempting to attract customers.

Tip: A system of controls for checking out a potential customer’s credit should be in place, and it should be used before an order is shipped. Further, there should be clear communication between the accounting department and the sales department as to current customers who become delinquent or otherwise contravene credit policy.

Tell Customers About Your Payment and Collection Policy.

Communicate your policy to customers. Invoices should contain clear written information about how much time customers have to pay, and what will happen if they exceed those limits.

Tip: Make sure invoices include a telephone number that customers can call or a website address they can access with billing questions, and a pre-addressed envelope.

Tip: The faster invoices are sent, the faster you will receive payment. For most businesses, it’s best to send an invoice with a shipment, not afterwards in a separate mailing.

Follow Through On Your Payment and Collection Terms.

If your policy is that late payers will go into collection after 60 days, then you must stick to that policy. Someone ‘not a salesperson’ should call all late payers and ask for payment. Accounts of those who exceed your payment deadlines should be penalized and/or sent into collection, if that is your stated policy.

Train Staff Appropriately.

The person you designate to make calls to delinquent customers must be apprised of the seriousness and professionalism required for the task.

Here is a suggested routine for calls to delinquent payers:

•  Become familiar with the account’s history and any past and present invoices.
•  Call the customer and ask to speak with whoever has the authority to make the payment.
•  Demand payment in plain, non-apologetic terms.
•  If the customer offers payment, ask for specific dates and terms. If no payment is offered, tell the customer what the consequences will be to them.
•  Take notes on the conversation.
•  Make a follow-up call if no payment is received, and refer to the notes taken as to any promised payments.

As the saying goes, “cash flow is king,” and having a written policy and adhering to it is key to making sure cash remains king in your business.

Make your work-life balance work!

According to the National Institute for Occupational Safety & Health:

• 40% of workers say their job is very or extremely stressful
• 25% view their jobs as the #1 stressor in their lives
• 3/4 of employees believe that workers today have more job-related stress than a generation ago
• 29% of workers feel quite a bit or extremely stressed at work

Nigel Marsh, author of “Fat, Forty and Fired” and “Overworked and Underlaid,” claims that all the talk of “flexy time” and “dress down Fridays” merely masks the true issue — that certain jobs are “fundamentally incompatible” with workers being engaged with young families.

Does that sound like your situation? Regardless, it’s safe to say that we let work overwhelm us and, consequently, neglect our families and friends. The fix? While we’ve all heard stories about inspiring social entrepreneurs stomping out of their desk jobs to be full-time “bloggers” and “PR gurus,” that option isn’t right for everyone. And the cure may not be as dramatic as we think.

Marsh says that it’s up to individuals to take control of the lives they want to lead — not to rely on employers to design the perfect work-life balance that they need. According to Marsh, we need to take control of our lives on a small-scale level, which will improve our quality of life and overall work-life balance.

“Never put the quality of your life in the hands of a commercial corporation.”

We need to be aware the the time frame for creating balance — which requires us to be realistic and plan long-term, not just immediate decisions. We also need to find balance in our planning (to be balanced — yes, I know it’s confusing). We need to tend to all areas — emotional, spiritual, and physical.

The small things matter, says Marsh, “Being more balanced doesn’t mean dramatic upheaval in your life.” The smallest changes can transform your life and even transform society. We need to make little changes towards becoming a more thoughtful and balanced society, changing our definition of success from what it is now. Instead of aiming for wealth or power, we should shoot for the success that comes from maintaining a healthy balance at work, being able to spend quality time with our families, and being all-around happier, healthy individuals.

Are you a fabulous boss?

A few weeks ago we highlighted some qualities of the extraordinary employee. This week, the tables have turned.  Filling a tough role, indeed, bosses encounter unique scrutiny. Think about the typical “boss” character in pop culture. More than likely, most are portrayed in a negative light — insincere, disrespectful, self-centered, absurdly demanding (to name a few traits).

Instead of harping on the negative, we’re focusing on the characters of a winning manager. The following, my friends, are qualities of a positively fabulous, wholly awesome, truly wonderful boss:

1. Encourages an approachable, respectful work environment.

Joe Vass, a videographer, says in an interview: ”The best boss I ever had made me feel like a valued and important member of the team — not through his words, but through his actions,” Vass said. “He encouraged hard work, ingenuity and creativeness and valued everyone for who they were, and so we were inspired to work hard for ourselves and for him. He was always available for consultation and skilled at good, constructive criticism [and] suggestions.”

Awesome bosses also are inclusive, making everyone feel equal and a part of a team. It’s always good to encourage feedback, innovation, and creativity, helping your employees to feel genuinely engaged at work.

2. Thinks mission, not just money.

An effective boss builds and sustains a true business mission. A clear mission can motivate employees and help them focus, while also allowing them to feel a sense of importance and drive. Consistently steering towards a goal — while keeping money matters in mind — can help employees feel like they are a part of something and not just participating in a shallow 9-to-5 grind.

3. Communicates clearly.

It cannot be stressed enough. Being able to communicate with your employees clearly and directly is the foundation that awesome bosses rest upon. For instance, instead of “Please have [this task] done soon,” try “Please have [this task] done by end of business on Wednesday.”

4. Welcomes frankness.

Machiavelli? A terrible role model for a wannabe awesome boss. Mistakes happen, as we all know (a little too well, perhaps?). Instead, encourage your employees to approach you with difficulties. ”This requires a mentality that encourages learning rather than a fear of making a mistake. Try something new and different, but know we’re not going to kill each other if things don’t work out,” says Rob Sheehan, director of executive education at the James MacGregor Burns Academy of Leadership at the University of Maryland. “I was a swimmer in college and I swam fast when I imagined a shark was after me. I swam just as fast when I imagined I was in the Olympics. It’s a question of what you want to focus on—fear or opportunity.”

5. Individually motivates.

This doesn’t mean pep talks. It doesn’t mean e-mailing an inspirational quote every Monday. It means understanding people’s motivations, and responding appropriately. The role of a boss isn’t simply to tell people what to do, but it’s to identify each employee for the specific qualities that he or she possesses, and enabling those strengths to be applied to the specific place that will best motivate the employee to continue producing good work.

6. Connects with employees

Although businesses are about results, humans are a bit messier than that. A good manager or boss builds rapport and trust with his or her employees. You can’t fake it. Openness, authenticity, and friendliness are all necessities to truly bonding and growing with your employees. People will find it more enjoyable to work with others that are relaxed and informal.

What do you think are some other traits of a fabulous boss?

Smart Apps

I’m an iPhoner. I love the App store, but it is overwhelming. I rarely venture outside of the “Top Apps” section, and even that I can only peruse for about 10 minutes without starting to feel a little frazzled. Which apps are the best? How do I know if the rating is reliable? Is it worth paying for or should I just get the free version?

I’m sure I am not alone. And when it comes to using your smartphone for productivity, the water gets even murkier. Wouldn’t it be great if someone just slashed through the noise and gave us a full, comprehensive list of the best, most useful and innovative apps to increase productivity, manage your finances, and streamline your workflow?

Yep, that would really be great. Oh well.

Until next time!

Jillian

 

 

 

 

 

 

I’m kidding. HERE is Forbes list of the best apps to increase productivity and make your life a whole lot easier.

How to Attend a Networking Event and Not Network at All!

Networking? Talk about a pointless snooze fest. Perhaps sometimes you just don’t feel like flapping your gums at everyone and exchanging business cards with Dirk from Bubba’s Fishhook Supply. But – curses – you’ve already paid for tonight’s event, and if you don’t show up your boss will know.

Fear no longer, friends. Print and take our handy guide with you so the next time your boss asks you to attend a networking event you can skip this reaction: 

and be reassured that there is a way out. As I am at this point quite well-versed in the nuances of such events, here is a strategic plan that, if followed correctly, will allow you to attend the event and successfully network with NO ONE.

Good luck! Please note: This carefully laid out plan is based on a typical 2-hour networking event taking place from 5 to 7 p.m. Beyond this time frame, I’m afraid you’re on your own.

Keep in mind the golden rule of being anti-social is to avoid eye contact. Never, ever look anyone in the eye.

Step 1: Arrival

Arrive at the latest possible moment of what is deemed “fashionably” or “acceptably” late. This threshold for a 2-hour event is 15 minutes. Don’t mess this part up! It will throw off the whole scheme. Time Check: 5:15

Step 2: The Check In

Q: Did you pre-register? A: No, you did NOT (note: DO NOT PRE-REGISTER). You would like to pay by traveler’s checks, please. What? They don’t accept traveler’s checks? Oh, well, in that case, you need to run back to your car to find your credit card. (Note: Your credit card is wedged between two seat cushions and you need to use a wire hanger to fish it out of there.) Return to check-in. While you were gone, ten more people have showed up and are in line in front of you. Rats, it looks like you have to wait on the line again. Time Check: 5:15 – 5:45

Step 3: The Passed Hors D’Oeuvres

What ingredients are in these hors d’oeuvres? You have suddenly developed a severe allergy to kidney beans. Can the waiters guarantee that the food is completely devoid of this evil legume? They say yes – but really, are you going to take their word for it? Demand a tour of the kitchen facilities and insist that the only way you will feel comfortable consuming the food there is if you observe the chef making it for you on all bean-free surfaces, with special bean-proof gloves. Does he not have those gloves? No problem, you have a spare pair in your bag, which is in your trunk. Time Check: 5:45 – 6:10

Step 4: The Perusal of Publicity Materials

Carefully review each and every flyer and form on the Member Services table. Read over them as if they were chapters of War and Peace. Periodically muse things such as “Ahhh”, or “Interesting”, or “Oh, only that much to sponsor?” Meticulously read every single item on that table. If you own spectacles, now is a good time to use them, especially since they’re buried at the bottom of your purse, which requires you to set it on a table to search in a focused, off-putting manner. Grunt and puff a lot. Bonus points for a monocle. Time Check: 6:10 – 6:25 – more than halfway there!!!

Step 5: The Urgent Call

The old stand-by. This is a rookie move, really. It requires almost no previous experience to pull off. All you need is a cell phone and the ability to pace around furiously. Set an alarm on your phone to ring on cue (note: remember to turn the ringer up as loud as it will go! This step is only effective if everyone knows you are receiving an urgent call.) When the alarm goes off, flash an extremely puzzled look, followed by one of utter worry and inconvenience. You must convince the room that you do not want to pick up, but due to its important and urgent nature – alas – you must. Get out a tablet and pen to take notes. Hang up, and dial a follow-up call immediately. Time Check: 6:25 – 6:45

Step 6: The Bathroom Break

Self-Explanatory. Time Check: 6:45 – 6:55

Step 7: Track the Tasty Treats

Follow the guy with the scallops wrapped in bacon. Not only does this kill time, but it’s well worth it. Ride on his coat tails until he either vanishes into the kitchen (which you will then also disappear into and escape through a back door) or gets close enough to the exit for you to veer out unnoticed. Time Check: 6:55 – 7:00

Oh, WOW! Gosh darnit…IT’S TIME TO GO HOME ALREADY? Now get out of there and do what you really want to do, which probably involves a pair of pajamas, a bottle of Port, and a couple of fluffy felines.

Argue, Discuss. Argue, Discuss.

I don’t know about you, but I hate the word “brainstorm.” For me, it conjures up images of highly-caffeinated business people squeezed into a dark windowless room around a conference table, scribbling furiously and screaming out ideas.

An article in The New Yorker by John Lehrer says,  ”Science shows that brainstorms can activate a neurological fear of rejection and that groups are not necessarily more creative than individuals. Brainstorming can actually be detrimental to good ideas.”

I am not surprised. So how are good ideas developed?

The answer can be found in Aristotle’s Rhetoric, the holy grail of communication theory and practice.  It’s called “Deliberative Discourse,” a communication style that refers to participative and collaborative (but not critique-free) communication.

Daniel Sobel, a design strategist at Continuum, says they refer to this method at his company as “Argue, Discuss. Argue, Discuss.”

“Multiple positions and views are expressed with a shared understanding that everyone is focused on a common goal,” Sobel explains. “There is no hierarchy. It’s not debate because there are no opposing sides trying to ‘win.’ Rather, it’s about working together to solve a problem and create new ideas.”

Sobel relays the five key things that make this process effective:

1. Abolish hierarchy (if only temporarily)

2. Never just say no. Say “No, Because…”

3. Welcome and cultivate diverse perspectives

4. Focus on a common goal

5. Have fun!

You can read the full article over at Fast Company.

How to Structure Your Week – Productively! A guest blog post by Neen James

I am often asked how to be more productive each day. This is important. However maybe something even more important to consider is how to be more productive each week.

We have a system for our week, sounds crazy, I know. No week is ever the same however you might be surprised that when you create boundaries or structure for your week you can achieve an enormous amount.

As a productivity thought leader we spend a lot of time travelling to client sites; walking convention centers; meeting clients, spending time with women in my mentoring program… oh and then there is the actual running of the business too.

We have found the easiest way to accelerate productivity is to systemize the week. Now like all good systems, we don’t get it right every time and it doesn’t work every time however it is a great guideline for our team.

We don’t work weekends with clients. We protect weekends as recovery time. We don’t fly for clients on weekends (unless they are super special clients); we know this isn’t practical for some of you reading this blog. So this is how we try and structure our week:

• Monday – meeting with mentors in the Stiletto Mentoring Program, networking, client appointments, writing, strategy and often this is a travel day.
• Tuesday to Thursday – speaking, training, media interviews and travelling.
• Friday – meeting with mentors (morning only), writing, setting up the next week and catch up.

This simple structure is helpful when we are trying to maximize time balancing what we do with how we do it. Here are some things to consider when building the structure for your week:

Schedule YOU first – book an appointment every day that is focused on you. This might include exercise, mediation, quiet time, reading, self-development – or all of the above! My mate Scott Ginsberg has some great ideas on creating daily rituals.  Check out his blog and follow him on twitter @nametagscott

Determine what is most important – what is your plan? What are you working towards? What do you want to achieve? What really lights you up? For me, I love to speak on productivity and mentor women – simple really. The simplicity allows us to determine where to spend time. This is called time filtering.

Book administration – not my favorite activity … even though we have found a way to outsource it, we try for Monday’s if possible.

Time block for projects – we all have so many priorities and people wanting our attention. To help structure your week, time block for projects e.g. when co-chairing an event for our professional organization, it was time intensive and could be a full time job (but didn’t increase revenue directly) we restricted times worked on the project to Monday afternoons and Friday mornings. This simple time blocking ensured if we needed to speak with someone, Skype with co-chair (fabulous Getting Geeky Gina Schreck) – we do it in one of these time blocks. What projects are you working on that you could time block this week?

Manage interruptions – if you work in an office or firm you will find people are a constant source of interruptions.  To help manage these so you can focus on projects and work achievements try wearing headphones while you get tasks completed, stand up when someone comes in your office to help accelerate the conversation or create a do-not-disturb sign (that the whole team understands) while you try and get things done. Interruptions can kill your best time blocking intentions!

Agree time management doesn’t work – Time management is out the window. The old way of managing time doesn’t work. The rules, systems and processes created historically didn’t realize technology has changed the pace we work. We have allowed ourselves to be contactable 24 hours a day, 7 days a week.  People complain about how ‘stressed’ and ‘tired’ they are and they chase an elusive concept of balance. Some people wear stress as a badge of honour. Not me! We need to realize to be more Productiv-ABLE we need to think about where we invest our time, attention and energy… it is not about time anymore.

Schedule a trial – decide which week you want to try this new strategy. Select a week, advise your team of what you are trying to achieve, schedule your daily appointment and see how and if it works for you.

Neen James, MBA CSP, is the President/CEO of Neen James Communications, LLC. An international productivity expert and native born Aussie, Neen delivers engaging keynotes that have educated, and entertained audiences with real-world strategies that apply in all roles, whether at work or in life. She will be speaking for the Princeton Regional Chamber of Commerce’s women’s group — Women in Business Alliance — on Tuesday, March 27. Click here for more info.

Six virtues of the mover & shaker — the extraordinary employee.

 

What makes an employee extraordinary? The textbook answer: A good employee abides by company ethics, arrives on time, balances leadership and compliance, blah. blah. blah. We’re not talking about just a ‘good’ employee, but an extraordinary one. The mover and shaker. The agent of change. The one who keeps key industry players on their toes. We’ve listed six traits of the extraordinary employee.

1. They color outside the lines. Even though a job description lists specific duties unique to a certain position, an extraordinary employee senses problems that may threaten a company and jumps in to help, even if it’s not their job.

2. They’re a bit… odd. Not for the sake of being different, but simply because their ideas and ways of approaching the job are unique by nature, perhaps even a little weird — but in a good way. Quirky, sometimes unorthodox employees shake things up. They rescue a group or organization from a humdrum existence.

3. They know when to be serious. When it’s crunch time, the extraordinary employee fits into the company equation flawlessly. They take others into consideration and put their humor or individuality on the back burner for the sake of the team.

4. They uplift others. Instead of seeing through envious eyes, they compliment peers on a job well done (when appropriate — NOT the same as brown nosing) instead of being self-centered and constantly critical.

5. They privately complain. There are times when it’s effective to bring up an issue during a staff meeting or other group setting, but the extraordinary employee can detect a touchy issue, and instead, mention it to the involved party in private, when appropriate.

6. They like to prove the naysayers wrong. There’s a certain quality that no degree or resume item can express, and that’s drive. Self-motivated employees thrive, not shrivel up and hide, when others doubt.

“Great employees follow processes. Remarkable employees find ways to make those processes even better, not only because they are expected to… but because they just can’t help it.”

Read the whole article by Jeff Haden on Inc.com.

Are you an information gatekeeper?

 

Here’s a question for you: Do you feel that people are more informed today than they were 50 years ago?

The answer is obvious, right? How could a culture in which “live-tweeting” is a preferred medium be LESS informed than those pre-millennial cave people, huddled around an AM transistor radio, still light years away from dial-up internet?

Welllllllll, my friend, don’t flatter yourself. Yes, you most surely CONSUME more information than your grandparents did. We’re inundated from sunup to sundown. But, as Tom Brokaw points out, “more information doesn’t necessarily bring more understanding.”

In other words, it doesn’t matter if you are reading from an iPad or a stone tablet. If you don’t understand the content of the messages you are receiving, you’re no better off than you were before.

So what does this mean for your business? Well, it means that even though there are dozens of new ways to gather data about your business, it has no value unless you learn how to synthesize all of that information in order to gain better insight. You also have to choose very wisely where you get this information from – just because data is out there does not mean that it is accurate or reliable.

In the business, they’re calling it “information discipline,” and it is a skill you should learn.

Ron Ashkenas is a managing partner of Schaffer Consulting and a co-author of The GE Work-Out and The Boundaryless Organization. He came up with five helpful tips to train yourself to be a better information gatekeeper.

1. Instead of trying to absorb everything, focus on a few key indicators. For short-term performance, look for leading instead of lagging indicators. Make sure that they give you a basis for taking action.
2. Differentiate opinion from data. Remember that different people can observe the same event and interpret it based on their own (sometimes unconscious) bias or agenda.
3. Examine trends and patterns. This means not only looking at indicators over time, but also examining their sources and how they may be changing.
4. Periodically look at the ecosystem. Since information flows from everywhere, occasionally take the time to map out where data is coming from and what it says. This will show you if certain data sources are becoming dominant or just “noisy”; or if other key constituencies are not providing any input.
5. Use information as a basis for dialogue. Interpreting information requires people with different filters, analytical tools, and perspectives. Take advantage of your team and other resources to sort through the information so that you’ll have a richer foundation for making decisions.

It’s like going on a data diet. Eventually, you’ll learn to consume only the information that is of value to you. Until then, try to be mindful of the information that you are using.

What came first, the happiness or the success?

How many times have you heard the good ol’ happy thought claim? You know what I’m talking about.

“Just think positively! Look up! Believe in yourself, and your life and job and pretty much everything in the world will get better!”

Well, here’s a similar piece of information that may seem a bit more concrete. What if I told you that only 25% of your career success is based on your IQ. The rest is based purely on your attitude.

“Seventy-five percent [of your job success] is about how your brain believes your behavior matters, connects to other people, and manages stress,” says Shawn Achor, a Harvard psychology researcher in recently posted TedxBloomington talk.

Achor explains that society’s formula for success is backwards. Instead of harder work = more success = more happiness; we should reverse the formula so that more happiness = more success = harder work.

The problem with our current way of thinking — that we’ll be happier once we find success — is that every time we accomplish a goal or step into that higher level of success, we just change the goalpost for what success looks like. We keep wanting more and we’ll never make it to what we consider true success.

Achor says that we should first seek contentment, and success will come! This statement is easily doubted, but studies prove its claim. People perform better in a happy state of mind. Happy people are more creative. They have more energy and intelligence. Every business outcome prospers. Achor reveals that you are 31% more productive when in a positive state of mind rather than a negative, neutral, or stressed state of mind.

“Dopamine floods into your brain when you’re positive, which has two functions,” Achor says. First, dopamine makes you happier. Second, it activates all learning centers in your brain. I don’t know about you, but I want a slice of this productive pie.

The question is, how can we become happier people? Many shrug the happy factor off, chalking it up to the idea that happiness is mainly genetic — something we have no real control over. Achor strongly disagrees.

Studies have found that doing one of the following actions two times a day for 21 consecutive days can successfully train your brain to work more optimistically:

1. Write down 3 new things you’re grateful for.

2. Journal about one positive experience you’ve had in the past 24 hours.

3. Exercise.

4. Meditate.

5. Do random acts of kindness/conscious acts of kindness — write one positive email thanking someone in your social network.

View Shawn Achor’s full TedTalk here.