Posts Tagged ‘business’

Clear Expectations Of Your Customer Service

Tuesday, 23 January 2018 10:00 Written by admin 0 Comments

Over the course of each year, I get a couple phone calls from clients who think they are not getting perfect service from us (and a whole lot more that tell me the happy opposite, I’m glad to be able to say).

I’ve learned that this is par for the course — and not to panic about it.

Almost all of these calls start with, ‘I read in your newsletter that client service is important to you, and I just wanted you to know…’ or ‘A few months ago when I was on hold I heard that you wanted me to call you if I had a problem that wasn’t being taken care of…’ etc.

Sure, nobody likes getting calls like this but in another way I love complaints.

What’s the alternative? For most businesses, the customer really doesn’t want the hassle of complaining. The customer who doesn’t care enough about you or your staff to say anything. The customer who goes to the competition, and not only doesn’t recommend you to others, but perhaps “badmouths” you. Sure, I don’t like getting these calls, but I love clients who give us the opportunity to make them happy.

Here’s my advice: Find as many ways as you can to tell your customers that you want to know if they are not happy.

But if you’re going to ask for input from customers, you need to act when you get it. Every client who writes to us or emails us at our firm, whether it’s a good comment or a complaint, gets a response. And we do everything we can to fix the problem.

Again, every chance you have, tell your customers you want to hear from them if they’re not totally happy. This signals something about your business which is actually quite refreshing, in my experience! Tell them when they are on hold on the telephone. Tell them with signs in your store or office. Tell them in your advertising. Tell them when you communicate via email. Tell them on your web site. Tell them every way you can.

Of course, another reason you want to ask for those complaints is so you can fix the things that went wrong in the first place… but there’s another great reason.

Your team members aren’t likely to forget your customer service expectations when they know that your customers know them and that you want your customers to tell you when they don’t get excellent service.

I’m personally dedicated to your success. Can other accountants say that?

Dumping Bad Debt

Friday, 12 January 2018 10:00 Written by admin 0 Comments

There’s a lot of discussion going on around the world about debt instruments and interest rates. We’re all seeing the consequences of the dangers of municipal debt.

And it’s true: most growing companies need to take on some amount of debt to fund growth, though debt at exorbitant interest rates is obviously “the wrong kind” of debt.

But choosing the wrong kind of debt for your business (or having too much debt) can be a killer to your business’ lifespan and success.

So, what is the “wrong” kind of debt to amass in business?

The following would make the list:

* Credit card debt
* Car-dealership vehicle loans/leases
* Personal loans at high rates
* A high mortgage balance

But in reality, the wrong kind of debt should be thought of as any debt that is either not necessary — or which could be refinanced at terms which are more favorable.

To remove bad debt from your business, you must plan to systematically review every outstanding loan … and try to find a way to either pay it off (without compromising growth, of course), or refinance it at a lower rate.

It will take time to organize your debts and search for alternative options that are more attractive for your business, but it will pay off in the long run.

If you have expensive debt (such as credit card balances), you should work to determine what other financing options are available to your business. If your company is profitable — or is showing strong signs of coming profitability — it’s likely that lenders will work with you to refinance at a lower rate.

And a tip: don’t think of this as a “favor” they are doing for you.

Rather, think of it as good business for the lender. These financial companies are in business to make money from loans. If you bring a good credit history and a viable business record to them, they’ll seriously consider lending you money at better terms and getting you out of the unnecessarily high payments you’re making.

Doing so will make your company all the more profitable.

Cutting Costs Without Killing Your Business (Part 1)

Wednesday, 10 January 2018 12:00 Written by admin 0 Comments

This is a rich topic, and it may extend into more than two weeks’ worth of notes.

1. Use One Fixed Expense To Replace a Monthly Cost

Here’s a good example: Do you have one of those filtered water deals, where the rep comes by every so often and gives you more 5 gallon jugs? Instead of buying all that water (to the tune of several thousand dollars over the course of a year), install a filter and fill those jugs for free with water you already pay for. For a few hundred dollars, you can install a high-pressure filter to your office kitchen sink. And you no longer need to coordinate drop-off times with the water people.

You don’t have to stop with water, but that’s one way to get your mind moving on areas such as this.

2. Deduct for Tangible Assets (Section 179)

This nice little provision in the federal tax code allows business owners to deduct for certain tangible assets, such as property and equipment. The GREAT news is that a bill passed in December 2015 set the deduction limit for most new and used capital equipment, and even certain software, at $500,000 after inflation (this would be only $25,000 prior to the current law). Also, this was retroactively applied for 2015 purchases as well (did your existing accountant take this into consideration, I wonder?).

There is also a 50% Bonus Depreciation in place, for qualified new equipment purchased this year, which can also be taken by some businesses after the Section 179 deduction.

This is something you should let us know if you’d like to pursue, ASAP, as we can help you with it, directly.

3. Creative Employee Compensation

Short on cash to cover bonuses, or even payroll? Offer a few extra paid vacation days for the coming year instead. That way, you can still compensate employees for hours they didn’t work–but you don’t have to lay out all that cash in one shot. (Note: This may be a tough sell, but it’s worth a try.)

Super Fraud Checklist for Your Business

Friday, 05 January 2018 19:43 Written by admin 0 Comments

We recently had a client who experienced such a horrible case of embezzlement by one of their most trusted employees who stole over $500,000 from this client and their company. The “trusted” employee had worked for them for more than 10 years, so it was totally unexpected. It did serve as a valuable lesson that no matter where you are in your business and no matter your relationship with your employees, it is ALWAYS good to have guidelines and conduct check-ins to make sure nothing sketchy is going on behind your back.

Bridges’s Fraud Checklist
1. Develop a code of conduct which explicitly prohibits employees from committing fraud, having conflicts of interest or engaging in any other form of illegal or unethical behavior. Ensure that all your employees, vendors and customers get copies of it. Have key employees provide annual confirmation of their compliance.

2. Have a clear company policy on time and expense reporting.

3. Verify the credentials of all new vendors before they are authorized to supply the company.

4. Make sure all disbursements are properly approved.

5. Use direct deposit for payroll.

6. Require two signatures on checks over a certain amount.

7. Review the bank statements before anyone else does. Consider having them sent to your home address. Review cancelled checks (or copies) and match payee names with endorsements. Review invoices for any payees you don’t recognize.

8. Make sure bank statements are reconciled each month and that your accountant reviews the bookkeeper’s work periodically.

9. Make sure everyone takes their full allotted vacation time and be suspicious about anyone who appears to live beyond their means.

10. If something seems odd, whether it is a disbursement to an unfamiliar vendor or an unexpected expense, check it out and don’t accept a casual explanation.

Following these simple steps will catch 99% of all instances of employee fraud.