Cash Flow Tips for Companies

Marketing image to generate cash flow

dsimkovich@gmail.com (Don Simkovich) — Wed, 18 Aug 2010 17:56:00 +0000

Marketing has to generate cash, or revenue, for small businesses to sustain all the costs of doing business.

While large companies can use marketing to create long-term goodwill and be indirect about their benefits to customers, small companies don't have that luxury. They need to make sales and income has to be greater than expenses. Simple.

But small companies must find every way they can to set themselves apart from the competition. They have to market their unique differences. This includes designing a logo that is simple to reproduce and memorable to people who see it on a business card, a car, letterhead, a website, or a social media site like Twitter.

Creating a logo for a small company is challenging since a budget will limit the number of renditions that a talented graphic artist will make. The company owner should then do a personal focus group to dig in to the company's attributes and how the company is different than competitors.

Read the basics of logo traits and elements in this article titled 5 critical attributes of an effective logo.

Marketing unique differences to generate cash flow

dsimkovich@gmail.com (Don Simkovich) — Tue, 17 Aug 2010 23:19:00 +0000

Marketing can lead to positive cash flow when a company has a unique selling proposition that catches the attention of new customers and keeps existing customers returning to buy products and services.

This is especially true for service companies and individual consultants who don't have the budget for advertising promotions, developing nationally recognized brands, and have little time to spend on marketing.

Determine the unique selling proposition by listing the ways your business is different from the direct competitors and indirect competitors.

Dollar General may be one example. Dollar General or the 99 Cent Only store may set themselves apart from indirect competitors like Macy's or Office Max by saying something like "enjoy a shopping spree for only pennies on the dollar and get quality for the whole family." That's my wording, by the way.

The discount stores may set themselves apart from area thrift stores, WalMart and Target with another type of saying: "No one can beat our low prices and offer our same quality on brand name products."

Those are ideas.

List what is unique about the business, including the personality of the owner, the employees, the products, the layout of the store, the way customers are handled.

Know the indirect competitors and the direct competitors. How much do they charge? What do they do well and why do they have customers? What don't they provide in the customer experience?

This is one step to marketing the unique differences, the unique selling proposition, and using marketing to generate positive cash flow.

Read about a specific way a gardener in Pasadena, California has caught my attention through marketing. Click here to read this marketing article on Hubpages.

Doing business in China and cash flow

dsimkovich@gmail.com (Don Simkovich) — Sat, 14 Aug 2010 18:51:00 +0000

Doing business in China is one way to manage cash flow by saving money on manufactured materials or exporting and expanding market choices. Knowing the people and the culture is important. I came across a post on Marcpgoodman.com about traits of the Chinese:

Chinese people are so used to seeing masterful performances by Chinese acrobats, or blazing speed demonstrations of Kung Fu by professionals raised to train to perfection from as young as 8 or 9, that certain kinds of demonstrations leave Chinese feeling quite unimpressed. Yet, ironically enough, the easiest steps in a Salsa dance show, or a Tango demonstration, will leave Chinese people breathless. Observe the differences and keep them in mind next time you want to impress your Chinese business partners.Notice the positioning of the buildings. A lot of thought has gone into the exact locations of each of the pavilions.

To read more of the post, log on to Marcpgoodman.com and read about business lessons from the Shanghai World Expo.

Managing cash flow for businesses

dsimkovich@gmail.com (Don Simkovich) — Sat, 14 Aug 2010 18:38:00 +0000

Here is a weekly roundup of articles related to managing cash flow for businesses:

Articles are usually related to managing cash flow through cutting expenses; managing cash flow through marketing and boosting sales; managing cash flow techniques.

Tips on cash flow management for small businesses is here on the site, Hubpages, with an article titled Managing cash flow for small businesses.

Employee turnover will hurt businesses. Click here to read this article Employee retention is smart cash flow strategy.

Exporting products is another way to increase cash flow. Read more with this article titled Export Assistance for U.S. Small Businesses.

Remember the basics: what's the company's mission, do the products and services support that mission, and do the marketing and sales efforts aim at the right target market? Use those statements to build positive cash flow and a profitable future.

Cash flow with local online search

dsimkovich@gmail.com (Don Simkovich) — Sat, 14 Aug 2010 18:25:00 +0000

Small businesses can develop their local online search and manage their cash flow well. Showing up in local search results does not have to cost much.

Here are the options:

Web companies or SEO consultants may charge anywhere from $ 300 monthly to $ 1,000 monthly to do a local search campaign. Here is what a small business can do with little cost.

Google maps for local search: Put your business on Google maps and complete all the information including address, hours, coupons.

Yahoo! Local: the directory is free. Complete all the information. For companies that have more than one product line or service line, it may be possible to have a few different Yahoo! Local entries.

Showmelocal.com: Showmelocal uses the platform of local newspapers for a directory. There are free and paid options.

Writing local content: I helped a property management company double the number of keywords customers used to find them online. They were mainly ranking for variations on the name of the company. Most renters came to them word-of-mouth or seeing their rental signs. I wrote local content on their web site, including the names of major intersections near their properties. The number of keywords doubled within 45 days, returns came back with zip codes - in other words renters were using Pasadena 91106 and variations of a city name with street names.

For more on how I worked with the property management company, click here to read Local Online Marketing for Small Businesses.

Cash flow and health insurance for employees

dsimkovich@gmail.com (Don Simkovich) — Wed, 11 Aug 2010 16:56:00 +0000

Health insurance is costly and given the on-going concerns related to health insurance, employers should take a close look at their policies and what they can offer their best employees.

Looking in to Chicago Group Health Insurance was raised by a writer, Cole C., on the website Hubpages:

Given the rising expense of health care within Illinois and around the country, owners should plan to closely and soberly scrutinize the demands of their businesses as well as all of the workers that depend upon the businesses' payroll (and prospective benefits) for the welfare of their families.

Click the title to read the rest of the article Chicago Group Health Insurance.

Encourage good health among employees by looking into wellness programs offered through local hospitals, insurance providers, and Professional Employer Organizations (PEOs). A suggestion I'd like to make is bring fruit and vegetables to company meetings instead of doughnuts - or at least in addition to doughnuts.

Positive cash flow is the only option for businesses

dsimkovich@gmail.com (Don Simkovich) — Tue, 10 Aug 2010 21:42:00 +0000

Maintaining positive cash flow is the only way for a business to make money for both the owners and employees.

Businesses large or small that rely on debt funding for the long term are giving away profits when a disproportionate amount of revenue has to service the debt load. Business owners who understand cash flow can make wise projections that control the destiny of the organization. This creates a framework for strategic decision-making that will position the company for future growth or a future sale.

Ways to generate positive cash flow:

Make sales

Manage expenses - making more sales may incur more expenses; managing the strategic expenses is necessary.

Cut unnecessary expenses

Keep minimal inventory

Click here to read the complete article on business and positive cash flow.

Employee retention is smart cash flow strategy

dsimkovich@gmail.com (Don Simkovich) — Thu, 08 Apr 2010 17:38:00 +0000

Retaining good employees is a smart way to manage cash flow.

A quality retention program reduces expenses and keeps productivity high, says Jeff Stinson, president of Irvine, California-based Global Human Resources Outsourcing (GHRO).

He mentioned a GHRO client with 1,000 employees discovered that every 1 percent drop in turnover saved nearly $ 188,000 annually.

Stinson says one employee departure causes a drop in productivity, takes up the supervisor's time, creates a need to pay out unused vacation time and then creates costs related to the hiring for an open position.

He says an employee retention program should have the following:

New hire orientation

Strong performance management systems

Up to date and fair employee policies

Fair compensation and benefit programs

Employee opinion surveys

Quality supervisor/management training program

Stinson says a human resources audit can provide the framework for developing a strong employee retention program.

Managing employees using progressive discipline policies

dsimkovich@gmail.com (Don Simkovich) — Wed, 07 Apr 2010 22:03:00 +0000

Employers of small businesses that worry about boosting employee productivity can use progressive discipline to alert employees about improving behavior and work habits.

This post comes courtesy of Global Human Resources Outsourcing and was originally written by HR consultant Ronnie Perez:

First, in an appropriate, safe atmosphere the employee needs to be informed of what the problem is and what efforts can be taken to rectify the situation.

Second, the employee needs to be given the opportunity to fix the problem within a reasonable time line.

Lastly, the employee needs to be aware of the consequences if he or she does not show noticeable improvement.

Perez writes that companies need to have a progressive discipline policy in place. He states that “at-will” employment, where the employee may quit at any time or the employer may fire at any time, is a moot point even during a probationary period.

Perez says employers must show cause for the termination if they end up being sued during the probationary period.

Click here to view the original post at GHRO's blog.

Global Human Resources Outsourcing is an Irvine-based company providing HR-related services to small businesses and growing companies throughout Southern California.

Professional employer organizations help companies with managing cash flow

dsimkovich@gmail.com (Don Simkovich) — Wed, 07 Apr 2010 21:29:00 +0000

CPEhr presents three reasons why professional employer organizations are helpful for companies looking to manage cash flow.

The following is an excerpt from a white paper written in the first quarter 2010 by Ari Rosenstein, CPEhr’s director of internet marketing:

1.Stabilizing operating expenses. Following a dismal 2009, employers are looking to reduce unnecessary expenditures, specifically in the area of labor costs.

2. Reducing employment risks. Employers are preparing for potential labor-related litigation by reviewing policies, updating HR documentation and training management.

3. Enhancing employee performance. Employers are compelled to find new ways of motivating and training their workforce to maintain a positive attitude while managing increased workloads.

A free copy of the white paper can be downloaded from their corporate website at http://www.cpehr.com/white-paper.

CPEhr is based in Los Angeles and works with small-to-medium sized businesses on HR and employment related issues.

Market research services for cash flow

dsimkovich@gmail.com (Don Simkovich) — Tue, 30 Mar 2010 00:21:00 +0000

Market research services can improve cash flow since accurate information should pull together the data needed to increase sales.

Jim Cooper of Conscientia Research in Monrovia, California, says market research services help make strategic decisions.

Here’s an example:

A start-up food company is making an organic product like a new type of sourdough bread. They contact local health food stores and niche stores like Whole Foods or Gelsons to get shelf space. They do.

But they’re competing against larger bakeries that make sourdough bread which is readily available in all larger stores like Vons, Ralps, and Albertsons.

Why not choose a completely different type of bread that really can fit in to a niche?

A market research service could gather the data to show how to package their sourdough bread differently so it stands out on the shelf or in the aisle.

Maybe a different flavor bread altogether would be best like a zucchini-type bread shaped in the same style as sourdough.

The market research could give the bread company information needed to enter a market or create a product line that’s not already crowded and may generate a much more favorable return.

To read more on market research for companies, click on this article I wrote to Examiner.com or contact Conscientia Research through the corporate web site.

How a Southern California company helps businesses make profitable decisions

dsimkovich@gmail.com (Don Simkovich) — Fri, 26 Mar 2010 22:42:00 +0000

How a Southern California company helps businesses make profitable decisions

Posted using ShareThis

Managing Cash Flow through Innovation

dsimkovich@gmail.com (Don Simkovich) — Mon, 22 Mar 2010 22:28:00 +0000

Managing cash flow may mean learning how to make products or deliver services in new and better ways - especially improving on the position of the competition.

Innovation in business is a more profitable long-term than cost cutting, according to a 16 year study from Bain and Company. The findings are in "Managment Tools and Trends 2009" by Darrell Rigby and co-author Barbara Bioldeau.

The findings stated:

Innovation continues to be very important yet tough

8 of 10 executives agree that "innovation is more important than cost reduction for long-term success'

6 of 10 believe they could dramatically boost innovation by collaborating with other companies and half say their entire organization is actively engaged in improving innovation

Another topic of interest was "our company will use this recession to improve our competitive position" 75% agreed while 9% disagreed.

The study was linked to on the Web site Strategyplus.org under "What's New: Management Tools and Trends 2009."

Another post worth reading is this one from June 2009 titled "Cash Flow in Recession" highlighting James Ellis, dean of the Marshall School of Business. He lauded innovation as a way of moving out of recession.

Cash flow tips for companies roundup March 21

dsimkovich@gmail.com (Don Simkovich) — Sun, 21 Mar 2010 23:15:00 +0000

Here's the cash flow round up for the past week March 15-March 21.

I don't write editorials. But that may change. Small business is called the engine of the economy and yet government stands to trip up the entity that has the best chance of employing people.

Cash flow, health care and the NFIB
A brief editorial on what the National Federation of Independent Business said about the health care bill and it's impact on small business. I recommend staying in touch with the NFIB to see what can be done after the health bill vote.

Managing Cash Flow Basics The key to business success is managing, and knowing, the basics of what goes out and what comes in. I'm also a believer that many employees in the for-profit sector and non-profit sector should have more responsibility for budgeting.

Easy to Use Cash Flow Tool Here's an easy-to-use cash flow tool that's as simple as using pencil and paper. Wait! It is using pencil and paper. Understanding cash flow for the busy owner or manager who's not an accountant or bookkeeper shouldn't be a mystery. Getting in the habitual discipline of recording what goes in and what flows out is made easy with the book "Small Business Bookkeeping System Simplified."

Thanks for reading and if you have cash flow tips for companies you'd like to share then please email me at deesm111@yahoo.com. I will post appropriate tips and give links to appropriate web sites.

Cash flow, health care bill and the NFIB

dsimkovich@gmail.com (Don Simkovich) — Sun, 21 Mar 2010 23:04:00 +0000

Health care is a cash flow challenge for small businesses and so is the health care bill, according to the National Federation of Independent Businesses:

"It is shockingly clear that with its new taxes, fees and government regulation, it won’t a: lower your insurance costs and b: will most definitely increase the overall costs of doing business for small businesses."

Small business is commonly referred to as the engine of the economy. So why throw gunk into an engine instead of reviewing more of the modeling that the NFIB has done to show how overpowering legislation will hurt the economy?

We'll see if small businesses hire fewer workers, especially entry level workers, and avoid giving raises in order to grapple with the rising costs of doing business and managing cash flow.

Despite the vote, take the next months to educate your congressional representative and your employees on how the health care legislation impacts the ability to turn a profit and run a business.

Managing Cash Flow Basics

dsimkovich@gmail.com (Don Simkovich) — Fri, 19 Mar 2010 05:35:00 +0000

Making sales is vital for a company's existence, but managing cash flow properly is the true test of how well a company operates.

Here is an excellent overview of cash flow for a company coming from the Agricultural Extension Service of the University of Tennessee. It was published in 1999 by Rob Holland, Assistant Extension Specialist, Agricultural Development Center and is taken from this document titled Understanding, Planning, and Managing Cash Flow.

Cash flow is primarily the difference between cash coming into the business and cash going out of the business during a given period.

Here are ways to manage cash flow:

Decrease the amount of money owed to you-- get customers to pay their bills
Cut out excess overhead expenditures
Keep a close eye on inventory
Don't overpay taxes
Review owner's compensation - secondary income may be valuable to the success of many small business ventures in the early years
Maintain tight reigns on billing and collections
Consciously structure the payment of bills - pay bills closer to the deadline but do not incur late fees
Consider biweekly or monthly paychecks
Update company procedures to make process more efficient and cost-effective
Plan ahead - he advises using cash saving activities such as renting instead of buying or purchasing used equipment versus new equipment, finding cash paying customers and quick paying customers versus giving credit and late payers.
Develop a good record keeping system

Easy to use cash flow tool

dsimkovich@gmail.com (Don Simkovich) — Mon, 15 Mar 2010 14:14:00 +0000

For small business owners who can't find time to set up a solid accounting system just yet, then get started tracking cash flow on paper the old fashioned way with "Small Business Bookkeeping System Simplified."

The bookkeeping book is easy to use and understand for non-bookkeepers and accountants. On two pages it has a weekly expense and income record system to track:

General Expenses
Inventory Expenses
Equipment / Property Expenses
Payroll Expenses
Weekly Income or Returns
Income totals and Expense Totals

The book, and method, may seem primitive compared to programs like Quickbooks, Peachtree, etc. but it's a great tool and way to get started understanding how to track simple expenses. Plus, the only tool needed to operate it is a pen or pencil.

I picked up a 2003 copy from my local library on the shelf of business books. A current edition is available at Novapublishing.com for $ 29.95.

It's a simple way to stay organized, track expenses across different categories and hand to a bookkeeper who winds up tracking expenses in more detail in Quickbooks or some other accounting system.

Click here to read the Cash Flow Tips for Companies round up for last week.

Cash flow tips for companies roundup

dsimkovich@gmail.com (Don Simkovich) — Fri, 12 Mar 2010 16:53:00 +0000

Business start-up posts, basic financial management, and a look at using Quickbooks for business are included in this week's business roundup.

Financial and accounting professional Seth David shares how he got his idea for starting Nerd Enterprises in this post:

Getting an Idea to Start a Business

Also, from Seth David,

Businesses Must Plan for Cash Flow

Choose a bookkeeping tool to keep finances managed properly. While Quickbooks is one of many good tools, it is popular and bookkeepers can use it readily. A business owner who doesn't have a financial background should still learn the basic functions and terminology:

Business Bookkeeping Using Quickbooks

Business owners need to regularly record expenses, enter income, and review weekly budgets and income expectations if a finance department isn't available to handle the task for them:

Why Basic Financial Planning is Essential for Businesses

Sending invoices to customers promptly is as important as finishing projects or delivering products on time:

Invoicing Customers, Your Cash Flow, Your Reputation

Managing cash flow in the start-up phase is vital for business success. Learn how a Southern California company worked its cash flow during its first three years:

How a Start Up Business Managed Cash Flow

Share tips on cash flow and money management for business with an email to deesm111@yahoo.com. Write "Cash Flow Tip" in the subject line.

I will post appropriate cash flow tips, give credit to the author, and link to appropriate Web sites.

Cash flow management overview

dsimkovich@gmail.com (Don Simkovich) — Thu, 11 Mar 2010 18:25:00 +0000

Cash flow management is a vital function for any business or organization having to pay bills, employees, and vendors. Having a concise overview of cash flow, how cash functions, and the needs for cash flow management may escape many business owners.

I highly recommend reading this article and re-reading this article "Cash Flow-In and Out" by Nancy Blondin, CPA, writing on the Website "Tennessee Society of Certified Public Accountants".

Here is an excerpt on managing cash flow:

"Cash is needed to acquire supplies, equipment and other assets that a business requires to accomplish its business purpose. Cash is needed to pay wages, operating expenses, taxes, interest and principal to creditors, and dividends to stockholders. It allows management to carry on its business. A thorough understanding of cash and how it flows in and out of an organization will allow you to answer the following questions:

How much cash does my business have?
How much cash does my business need to operate, and when is it needed?
Where does my business receive its cash, and spend its cash?
How do my income and expenses affect the amount of cash I need to expand my business?

If these questions can be answered, you are truly managing your cash flow."

The article covers:

Cash Needs and Policies
Financial Statements
Net Income vs. Net Cash Flow
Cash vs.Liquidity
Cash Budget
Techniques

Read portions of the article on cash flow, bookmark it, and read it again.

How a start up business managed cash flow

dsimkovich@gmail.com (Don Simkovich) — Thu, 11 Mar 2010 17:29:00 +0000

A business in Southern California had to carefully manage cash flow during the first three years as it started up and sold products to retail stores in the United States and eventually Canada.

The company didn’t pay cash or incur debt to purchase and stockpile inventory in the start up phase.

“When we started, we started with very little money,” said Jason Carr, co-founder of Softline Home Fashions with brother Rodney Carr.

Softline Home Fashions, located in Gardena, just south of Los Angeles, imports quality polyester fabrics and sells to independent retail outlets and mass merchandisers.

He told me how they started generating their initial cash flow: “Some guy would have a stock lot and we’d go and re-sell it to generate capital. We started taking trips to China to buy more of a regular running line.

“We used factors. People take a certain percentage of the invoice and they collect on receiveables paid to them.”

Financing the start up for Softline Home Fashions required a careful strategy of showing samples to the retail outlets, determining which fabrics were going to sell, and then requesting the fabrics from suppliers in China and Indonesia. The product was then shipped and sales made to the retail outlets and then the suppliers were paid.

Jason Carr, co-founder of Softline with brother and business partner Rodney Carr, told me they’re grateful to the suppliers who allowed flexible financing arrangements.

Softline Home Fashions’ today has a large warehouse with 75 employees at its Gardena, California operations with immediate shipments to customers. The company also has offices in Atlanta, New York and operations in Canada.

Click here to read more on how Softline got started shortly after the tragedy of 9/11 in 2001.

Financing for a start-up business

dsimkovich@gmail.com (Don Simkovich) — Sat, 06 Mar 2010 21:29:00 +0000

Ensuring cash flow for a start-up business is one of the main reasons to arrange initial financing.

The amount of financing, and the type of financing, needed depends on the overhead and complexity of the business model.

Here are tips for financing a start-up:

List all expenses
Project dates for initial revenue
Invest a small portion of personal funds
Fund new business operations through equity and debt
Check city, county, and state resources for funding guidance and low cost loans

Click here to read the full article on creating a financing recommendation for business

Do not underestimate start-up expenses and do not overestimate start-up income.

Businesses must plan for cash flow

dsimkovich@gmail.com (Don Simkovich) — Fri, 05 Mar 2010 17:57:00 +0000

This is the second post with Seth David on the single most common accounting mistake small businesses make. Seth says companies simply don't plan.

Many businesses fail to do this, and they HAVE TO!

The Business Visionary

They know they can go out and make money – you get a visionary with a great idea. Maybe he has the start-up capital and the marketing skills. So he goes at it with all of the passion needed to start it off.

Then as time goes on he starts to wonder why there isn’t more money in the bank. Then he finds himself (or she finds herself) struggling to make payroll.

We know this is normal for a new business and some might even say a requirement for every entrepreneur to experience. At some point the visionary finds me and asks me to help them understand where all the money is going.

What the Business Visionary Overlooked

Invariably what I find broken down simply is that they failed to plan ahead. They failed to sit down and add up their expenses ahead of time to see at a minimum what they needed to bring in to pay for everything and still make a profit.

They forgot to consider that the startup capital came with a payback requirement and interest. This affects cash flow. There are many factors that come into play that we don’t/can’t anticipate – so it is critical to have a plan (forecast) and to review it every single month.

Financial Basics

I have a very robust spreadsheet that I’ve created that lets me export my financial information from QuickBooks each month so I can look at my income, expense, and cash flow forecasts. I have both my corporate and my personal tied in because the money flows that way- from my business to my personal and then out to the bank to pay my mortgage.

Click here to read the first post on why businesses need to plan for basic financial information

Why basic financial planning is essential for business cash flow

dsimkovich@gmail.com (Don Simkovich) — Fri, 05 Mar 2010 16:09:00 +0000

Basic accounting and bookkeeping is essential for all businesses - but especially small businesses.

I asked Seth David of Nerd Enterprises "what is the number one accounting and cash flow mistake that all small businesses make?"

The biggest mistake I see businesses make is that they don’t plan. When I moved to California I was living in a half way house. Before I took a job, I had to add up what my expenses were going to be each month so that I could see what I needed to earn at a minimum to live.

It wasn’t much, but if I just went and took a job without knowing, I could have found myself in a situation where I wasn’t making enough money to pay my bills. So when I sat down in the first job interview I already knew what I needed bare minimum. I padded the amount in case I may have missed something, and in all likelihood I would need to add expenses along the way.

Of course I wanted to further pad that so that’s where the negotiating comes in. When I am looking at jobs I know I need to look at jobs that are paying at least as much as I need at a minimum.

Now let’s say I find that for what I do, jobs simply aren’t paying that much. I have to go back to my budget and adjust the income based on what I think I can get. From there I look at the net to see if I am short and if so by how much.

If I am short I have to make adjustments somewhere, starting with things I don’t really need and then seeing if I can live with “less” of the things I do need.

Business bookkeeping using Quickbooks

dsimkovich@gmail.com (Don Simkovich) — Tue, 02 Mar 2010 06:31:00 +0000

A business owner who pays attention to the books, and even learns bookkeeping, has more control over the finances than an owner who delegates the task and then doesn't ask the bookkeeper for details.

Learning bookkeeping in a program like Quickbooks can help a business owner ask intelligent questions.

Knowing bookkeeping basics gives an owner a greater financial understanding of expenses, income and profitability. It serves in making strategic decisions.

Click here to inquire on Quickbooks and applicable discounts.

So where are bookkeepers found? Certainly through a local chamber of commerce and business networking groups.

Hiring a bookkeeper?

Ask if they have certification from an organization like the American Institute of Professional Bookkeepers http://www.aipb.org. There are 30,000 members. The mission of the organization is "to keep bookkeepers up to date on changes in bookkeeping, accounting and tax; answer bookkeepers' everyday bookkeeping and accounting questions; and certify bookkeepers who meet high, national standards."

There's also the National Association of Certified Public Bookkeepers, www.napcb.org, that has a mission "to protect the public interest by helping to ensure that only qualified individuals provide public bookkeeping services and assure the public that members are trusted and competent bookkeepers."

The NACPB has billing rates at $ 60 per hour and up.

Bookkeeping is a strategic expense for any business at any stage. For most small businesses, a bookkeeper is normally needed three hours to five hours weekly once records are in order.

A business owner who takes the time to learn Quickbooks basics can get records in order and then hand the operation over to a qualified bookkeeper.

Keeping Records and Financial Statements

dsimkovich@gmail.com (Don Simkovich) — Thu, 25 Feb 2010 17:40:00 +0000

Control business finances with a thorough record keeping and organizing financial statements. Here is a good cash flow tip from the book Starting Your Business.

Author Peter Hingston writes:

"keep receipts and invoices for everything you buy in connection with your business . . . the purpose of keeping invoices is so that you have proof of purchase and can justify all your expenses to your accountant and any IRS agent.

"Write the last three digits of the check number boldly in red ink on an outside corner of the invoice so that it can be easily cross-referred to your check book and financial statements."

Separate invoices in to paid and unpaid statements.

For most small businesses, hiring a bookkeeper as an independent contractor is a wise use of cash flow. For companies with fewer than 15 employees, most bookkeepers may only need to work on a system for 5 to 7 hours per week to maintain it.

Also read Reduce bills to increase cash flow.