Perpetual Inventory Counting vs Annual Physical Inventory

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

If your business maintains inventory there are a few accounting and business practices you should be aware of. Generally Accepted Accounting Principles ( GAAP ) as well as IRS rules require you to either count your complete inventory on an annual basis or implement a perpetual counting system. With good computerized inventory systems, the perpetual counting system (often called “cycle counting”) can save money, increase accuracy of the count, and reduce disruption in your operation during the count. The reasons most often cited in favor of cycle counting is that the complexity of doing an annual physical inventory is much greater and therefore there is more chance for error.

Topics: Operations, Featured, Business Best Practices, Articles

Audio podcast: Identifying customers by demographics, psychographics, behaviors, and geographics

by Jan Triplett

Business Success Center

Jan Triplett, Ph.D. is the CEO of the Business Success Center (BSC), a City of Austin certified green business, that provides sales and financial growth strategies, planning, and implementation. She is also a professor in Business and Professional Skills for the online MBA program at Mary Baldwin University. Triplett is a national and international speaker, author of A Networker’s Guide to Success and co-author of Thinking Big, Staying Small and Easy to be Green. She published The Networker ” magazine for over ten years and moderated KUT radio’s nationally syndicated program, “The Next 200 Years”. She was co-creator of the award-winning “City Management Academy” and the “Owners MBA” and co-founded the Entrepreneurs’ Association Hatchery incubator and accelerator. She is a small business activist. She served as a White House Conference on Small Business and Congressional Summit delegate, served on the Mayor’s Task Force on International Infrastructure, initiated the Northcross IBIZ District and recommended portions of Austin’s Big Box Ordinance. She was a founder of the Women’s Chamber of Commerce of Texas and the Greater Austin International Coalition. The SBA honored her as Texas’ Small Business Advocate. She has also earned her CBTAC and Director credentials. Her company received a Small Business Administration (SBA) five-star national award and the Austin Business Journal named it a top 20 management consulting firm.

Chris Bjorklund: Hello, I’m Chris Bjorklund for the Virtual Business Center. Today, I’m talking with Jan Triplett, the CEO of the Business Success Center in Austin, Texas. Lots of consumers are potential customers for any kind of business, Jan. How do I choose the best kind of customer for my business?

Topics: Operations, Featured, Business Best Practices, Blog Posts

Why business owners should know what their company’s NAICS codes are

by Mary Ann Hebel

Business Bank of Texas

Mary Ann Hebel is organizer, director, executive vice president and chief financial officer of Business Bank of Texas, N.A. With over 37 years of banking experience, Mary Ann has contributed to the success of three national banks in the areas of accounting, data processing, human resources, and more recently as chief operations and chief financial officer. Mary Ann has also served as a consultant to the Texas Department of Banking in the capacity of liquidation agent for failed trust companies and private banks.

Every industry in the United States has a North American Industry Classification System (NAICS) code. The code is used for a variety of purposes that may affect your bottom line as well as your ability to access business loans.

Topics: Operations, Management, Blog Posts

Exception reporting: a business owner’s key to staying focused

by Mike Wilke

River City CFO Services, Inc.

Mike Wilke is the president of River City CFO Services, Inc. and is a 15-year resident of Austin. Born and raised in Wisconsin, Mike has lived in Sierra Vista, Arizona (twice), Charleston, South Carolina and has commuted across the Arizona\Mexico border for three years. He is a graduate of Charleston Southern University (Bachelor in Business Administration\Accounting) and the Racine Technical College. During a 30 year career, Mike has worked with businesses and non-profits ranging from start-ups to organizations with a world-wide presence. His broad industry experience includes manufacturing, services, distribution, government contracting and non-profits. He has held progressively responsible management and executive level positions in Finance, Accounting, Operations, Administration, Business Development and Strategic Planning. He founded River City CFO Services, Inc. in 2008. Mike’s inspiration for the company is rooted in the belief that smaller organizations are generally “resource starved”. Smaller organizations often cannot afford (nor do they have a full-time requirement for) professional staff members such as a CFO, Human Resource Director or Quality Manager, etc. His vision was to start a business that would provide owners of smaller organizations affordable, professional level CFO services, on a part-time basis. Mike is recognized by the CEOs he has worked for as “. . . a guy who has no agenda other than to watch my back . . .” In his spare time he has been active as a volunteer, supporter and advocate for several organizations including: Meals-On-Wheels and More, Lifeworks (Adult Literacy Tutor) and a local Food Pantry\Bank.

Business Owners, do you share any of these frustrations?

Topics: Operations, Featured, Business Best Practices, Blog Posts

guide.jpg

Using a 13 week cash flow forecast to manage your business

by Sam Thacker

Business Finance Solutions

Sam Thacker is a partner in Austin Texas-based Business Finance Solutions. He has spent the last 16 years in the banking and finance industry as a commercial lending officer, banking consultant and advocate for small business financing. He has originated over $400 million in loans to hundreds of businesses in many industries. Sam has been on the financing end of numerous businesses over his banking career. Sam is a nationally respected working capital finance professional and writer. In addition to helping small companies obtain working capital financing using a variety of assets, Sam writes a widely read finance column which appears three times a week in many traditional and online news outlets throughout the United States. He writes about the challenges of small business finance, accounting, and best business practices. He has been praised by readers for his ability to explain a complicated financial concept in easy to understand terms. Sam also writes a once a month business column for the Austin Business Journal . Sam regularly teaches classes at Texas State University’s Small Business Development Center (SBDC) on financing small businesses, financing government contracts, and other topics of interest to small businesses.

Having a current and detailed cash flow forecast can mean the difference between thriving and closing your doors in a rough economy. Even in a fast growing business having a strong cash flow forecast can mean insuring that ever changing working capital needs will be met.

Topics: Operations, Business Best Practices, Accounting & Finance

Picking a commercial collection agency requires doing some homework

by Sam Thacker

Business Finance Solutions

Sam Thacker is a partner in Austin Texas-based Business Finance Solutions. He has spent the last 16 years in the banking and finance industry as a commercial lending officer, banking consultant and advocate for small business financing. He has originated over $400 million in loans to hundreds of businesses in many industries. Sam has been on the financing end of numerous businesses over his banking career. Sam is a nationally respected working capital finance professional and writer. In addition to helping small companies obtain working capital financing using a variety of assets, Sam writes a widely read finance column which appears three times a week in many traditional and online news outlets throughout the United States. He writes about the challenges of small business finance, accounting, and best business practices. He has been praised by readers for his ability to explain a complicated financial concept in easy to understand terms. Sam also writes a once a month business column for the Austin Business Journal . Sam regularly teaches classes at Texas State University’s Small Business Development Center (SBDC) on financing small businesses, financing government contracts, and other topics of interest to small businesses.

Even the best managed company will occasionally need to use the services of a commercial collection agency. Picking one that fits your company’s personality while still being effective in collection efforts can require some research and homework.

Topics: Operations, Management, Blog Posts, Accounting & Finance

Keeping accurate mileage records for the IRS is crucial

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Nearly all businesses require some kind of travel by their employees using their personal vehicles. The IRS recognizes several methods for allowing deductions by your business or the individual employee. Knowing what is required is crucial because it is one of the IRS’s most looked at deductions for businesses.

Topics: Operations, Management, Accounting & Finance

How debit and credit ACH can save you time and money

by Mary Ann Hebel

Business Bank of Texas

Mary Ann Hebel is organizer, director, executive vice president and chief financial officer of Business Bank of Texas, N.A. With over 37 years of banking experience, Mary Ann has contributed to the success of three national banks in the areas of accounting, data processing, human resources, and more recently as chief operations and chief financial officer. Mary Ann has also served as a consultant to the Texas Department of Banking in the capacity of liquidation agent for failed trust companies and private banks.

The banking industry has undergone monumental technological changes during the past ten years. One of the most exciting has been bringing electronic funds transfer (EFT) to nearly any business that can benefit from using it. Also called ACH, which stands for Automated Clearing House is a network that electronically processes collections and payments. Though there are a number of types of ACH transactions, ACH debit (also called direct debit) and ACH credit are the most common.

Topics: Operations, Management, Blog Posts, Accounting & Finance

Calculating breakeven sales is a critical business skill

by Leslie Thacker

Business Finance Solutions

Leslie Thacker is the Managing Partner of Austin Texas-based Business Finance Solutions. Leslie has over 20 years of general business experience, including ten years managing the marketing, sales, and projects for financial services including bank lending programs and electronic data interchange programs for small businesses. She has served as a consultant to several banks and a small business investment company (SBIC). Her role in Business Finance Solutions includes assisting small and mid-sized businesses obtain working capital financing, equipment leasing, and leveraging other assets for working capital. Before entering the financial industry, Leslie was the publisher of a business trade publication in Corpus Christi. She also has an extensive background in inventory control and merchandising. Leslie is passionate about helping business owners, managers, CFOs, and operations personnel obtain valuable practical business training. In March 2009 she started a highly successful Austin based Meetup group. Each month she has arranged a respected speaker to present a finance or operations topic of interest to the group. There are now approximately 180 members of the group. Leslie also volunteers time at the Texas State Small Business Development Center, assisting with educational programs and the center’s marketing program. When not helping businesses find financing and practical educational resources, Leslie spends time in her garden growing antique roses.

With capital as tight as it is and revenues for many companies down, calculating your company’s breakeven sales is a skill that can help you better plan and manage your fixed and variable costs. Small business owners who are struggling with profitability should calculate their breakeven sales so they have an accurate understanding of how much they need to sell each month in order to make a profit. The exercise is pretty easy but you have to know some terminology:

Topics: Operations, Sales, Management, Articles

Difficulties facing single product / service companies

by Sam Thacker

Business Finance Solutions

Sam Thacker is a partner in Austin Texas-based Business Finance Solutions. He has spent the last 16 years in the banking and finance industry as a commercial lending officer, banking consultant and advocate for small business financing. He has originated over $400 million in loans to hundreds of businesses in many industries. Sam has been on the financing end of numerous businesses over his banking career. Sam is a nationally respected working capital finance professional and writer. In addition to helping small companies obtain working capital financing using a variety of assets, Sam writes a widely read finance column which appears three times a week in many traditional and online news outlets throughout the United States. He writes about the challenges of small business finance, accounting, and best business practices. He has been praised by readers for his ability to explain a complicated financial concept in easy to understand terms. Sam also writes a once a month business column for the Austin Business Journal . Sam regularly teaches classes at Texas State University’s Small Business Development Center (SBDC) on financing small businesses, financing government contracts, and other topics of interest to small businesses.

When evaluating your company’s overall risk of sustainability, examining your company’s product lines or services you offer may help determine ways to minimize risk. Single product companies face several challenges not faced by companies offering two or more product lines or services.

Topics: Operations, Sales, Management

1
...
2
3
4