A SMALL CHANGE YIELDS AN IMPROVED RESULT

Posted in Accounting by

If you want to increase your efficiency and organization at work, there’s an easy first step. It doesn’t require you to learn anything new. It doesn’t cost a dime. In fact it won’t take much effort at all, except for the mental discipline to do it.

Start waking up ½ hour earlier every day.

If you are employed, arrive at work early. By arriving before everybody else, you show initiative. It is usually quieter in the morning. If you have a pressing deadline or a complicated project that you need to start, your best ideas will come early in the morning. Use that extra ½ hour to go through your emails and answer the urgent ones, categorizing the others for a later response. Do that filing you never seem to get around to doing. Study another aspect of the business. Your value to the organization increases if you can help the business in other ways. If you work in accounting, make a point to study marketing. Write down five to ten ideas, and be creative; the list is only for you. You never know when one of the ideas on your list could come in handy in a business situation. Think about what is going on in your department, and make a list of changes you’d like to implement.

The same ideas apply if you own your own business. As a business owner you will find that your most productive hours are those with no interruption, and you will find those hours to be early in the morning.

One could argue that staying late is just as good. However, the stresses of the day drain you, and you aren’t as productive. Rather than working late, better to go to bed and get up earlier the next day. You’ll be amazed how much clearer your thinking is. Waking up early is like looking at the same problem with a fresh set of eyes. This is of vital importance when you work for yourself and the majority of your projects are self-reviewed. Working late into the night, you may puzzle over the problem for hours and never solve it. Wake up early and solve it with a better idea in a shorter amount of time. It’s a great confidence boost.

I wake up early seven days a week. On weekends I may stay up and start my day, but sometimes I am in fact tired and need sleep. If that’s the case I’ll go back to bed. Before I do, I try to write down a few ideas. Many times they turn out to be my best.

PERSUASIVE LETTER WRITING

Posted in Accounting by

In the normal course of business you will receive notices from various governmental entities. Many are standard type notices, informing you of tax rate changes, new laws, or confirming receipt of returns you’ve filed.

You will also receive notices regarding errors on your tax return filings, which usually result in additional tax owed, but occasionally a refund. In some cases you may receive a refund check you weren’t expecting.

In all cases, you must investigate the problem and then communicate with the entity that sent you the notice. These communications can be written or oral. I usually choose written communication if the issue requires detailed explanation and backup.

When writing a letter, keep these points in mind:

  1. Make it clear what notice you are responding to. Reference it on the line right above the greeting, for example re: Notice Number xxx;
  2. Restate briefly what their letter said. This should be done in a sentence or two. I also include the date of their letter in this part;
  3. Indicate your response – that you disagree with their findings, along with your reason. Include backup to show why yours is the correct position;
  4. Tell the entity what you want. You have to be crystal clear on this point. Since it is so direct, I like to include ‘respectfully request’ as part of the sentence. For example, ‘we respectfully request that the penalty be abated.’
  5. A helpful closing statement.  Indicate that you are happy to provide any additional information needed to process the request. Include your phone number (even if it is also on the letterhead) to show that you are willing to discuss the issue further in the event of disagreement;
  6. Always include a thank you line, for example, ‘thank you for considering this request.’
  7. Enclose a copy of the notice as well as any backup you’ve referenced in the letter.

One final thought – if you receive a refund check you weren’t expecting, particularly from the IRS, don’t cash it right away. Call the issuer to see if they can provide more information. If you cash the check and it turns out it was issued in error, penalties and interest may be charged until the money is returned. It doesn’t seem fair, but I’ve had it happen. Of course you may be able to sweet talk your way out of it, but it doesn’t always work. Better not to put yourself in that situation at all.

 

 

FEEL THE FEAR – DO IT ANYWAY

Posted in Horse by

In the last few months I’ve been thinking about what I’ve been doing and if I’m happy with where I am in my life. I would have to say that I don’t have many regrets. I’ve set goals and worked to achieve them, in some cases ‘to the bitter end.’

I’ve structured my life around my equestrian pursuits because no matter what I was doing in my life, it was my number one priority to be able to afford to do what I wanted with my horses. It meant sacrificing a more lucrative career, but I parlayed my overall efficiency into a nice niche in the accounting world and I’m well paid for what I do.

As far as the horses, I’ve had to overcome a lot of fear (mostly in my mind) in order to keep going towards my goal. I have horrible horse show nerves, and trailering my horses anywhere gives me great angst. How do I overcome this and do it anyway? I’m not sure, but I think the main reason is I see the fear as an impediment to my progress towards my goal, and if I let it stop me, then I lose. During show season I’m in a constant state of anxiety. I sometimes wonder how I am able to leave the house. The key is to recognize your fear and do it anyway.

I traveled three days from Washington to California by myself to participate in a couple of shows. I wasn’t that competitive, but it was important to me that I face my fear of long distance hauling and show my horses in a totally unfamiliar place. I was surprised how well I held up during the 2 ½ week adventure. I slept in the tack room of my 2-horse trailer. It is not a living quarter’s trailer, so I was roughing it, but everywhere I went there seemed to be a shower. I met a lot of nice people and had a fun time.

When I got back I felt like a changed person. Hauling to local shows still causes anxiety, but not as much. Horse show nerves just come with the territory so I doubt that will ever go away, but as time goes on I have increased confidence in my abilities which seems to take the edge off somewhat.

Facing my fears has really changed me. You take small steps and before you know it you have a solid foundation on which to stand and reach even higher. You see opportunities that you didn’t think were there. You can transform yourself in ways you never thought possible. It’s worth a little mental pain.

YOU ARE THE BEST STEWARD OF YOUR RETIREMENT SAVINGS

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I have always believed in saving for my retirement. I put the maximum amount away every year from my paychecks, to take advantage of the employer match. I felt I was doing a good job with my saving. I didn’t feel like I had to pay too much attention to what I invested in, the money would just grow like I had always been told.

At the time of the 2008 financial crisis, my 401k had been rolled into an IRA that I kept invested in mutual funds. That account was cut in half. I was really upset, but I just ignored my retirement account, it was too painful to look at the huge loss.

At the end of 2011, when it had finally almost come back to pre-crash level, something told me I had better take charge of my savings and think about my future because nobody else was going to.

I had kept my account invested in mutual funds, thinking that was diversified enough. The problem with mutual funds are the high fees which pretty much wipe out any gains you might make. So my account was growing at a pace that was less than inflation, in essence, I was losing money every year.

I found an investment advisory service through an ad on TV. It was a video link explaining the US Federal Reserve. I never understood the FED or what it did, but in a nutshell, I discovered that the money printing by the FED was causing not only the devaluation of my retirement account, but also the many booms and busts of the stock market.

This issue is complex and too much to go into in this post, but suffice it to say it drove me to make the decision to move my entire account to a self-directed IRA. A self-directed IRA is a retirement account where the user controls the investments. You decide which stocks, bonds, ETFs or mutual funds you want to invest in.

I converted all the mutual funds I held to cash. Then, with the help of my investment advisory service, I learned how to value stocks and pick solid companies to invest in. I also became familiar with DRIP plans, where any stock dividends paid are re-invested back into the company’s stock, so I end up owning more shares and earning an even higher rate of return.

So far I’ve achieved over a 10% return over the last few years. There’s nothing better than taking control of your financial future. I know that I care more about my money than someone else.

Is it a lot more work? Not really. I look at my account every week and rebalance as necessary. I’ve learned additional techniques to juice my returns and protect myself against losses.

I would highly recommend Stansberryresearch.com. They have many different product offerings to suit any budget. I’m currently a lifetime subscriber to their buy and hold services, but by far my favorite is the 12% Letter. I encourage you to check out their website and choose a service that’s right for you. I’ve earned my money back many times over.

If you are interested in subscribing, it’s best to call their toll free number. They are usually running promotions and if you talk to an operator you’ll get the best deal. You should be able to subscribe to the 12% Letter for an introductory rate of $39.

Dan Ferris is the analyst for the 12% Letter. He has been quoted in newspapers and has even been on TV a few times. Here are some links if you’d like to check it out.

http://video.foxbusiness.com/v/2991950656001/will-stocks-continue-to-rally-into-2014/

http://stansberryresearch.com/news/should-apple-partner-with-tesla/

The only downside to Stansberryresearch.com is the relentless promotional emails. However, they are usually very informative, so even if you aren’t interested in the product offering, you’ll learn something from watching them.

 

STRENGTHEN YOUR (MENTAL) CORE

Posted in Horse by

As I wrote in prior posts, I have a horse that is difficult. I’ve learned techniques to manage her behavior, and we steadily make progress. She is now seven years old and I hope to show her 3rd level dressage this year.

This horse does relapse back into bad behavior. So not all the techniques I’ve learned work 100% of the time. At first I tried to follow them to the letter.  I told myself I must not be doing it right if it doesn’t work. But on my own, with nobody helping me, I found this wasn’t productive. It was wrong-headed thinking. I had to make a decision about where to go with the training.

I don’t think I can ever sell this horse. Her behavior can be unpredictable, and I feel it would be dangerous to pass her on to someone not skilled in dealing with it. Someone who could deal with it would probably get frustrated and turn to methods not conducive to making the situation better. More than one person told me she just needed to be beaten.

So as I think about it, what keeps coming into my mind is that I am responsible for her. I’ve had her most of her life, so whatever her problems, I had a hand in making them. No, she isn’t fun to ride sometimes, and when things are hard, it’s easy to want to give up. I say to myself that I deserve better. But so does she. She needs me to get better so she can reach her potential.

I accepted my role in her life. That it wouldn’t be easy, that it would be frustrating, and that I couldn’t seek professional help because people were so critical of my solutions and wouldn’t allow my ideas in.

Sometimes in business, you are in situations you don’t want to be in, and it would be easy to say, it’s too hard, it’s too much work, or my personal favorite, it’s not fair. But you have to ask yourself if you are the best person for the job. Could someone else do it better, or are you uniquely qualified? Will someone else even be willing to do it?

If not, then you must take it on. You must do it even if you don’t want to.  You must do it even if you don’t see any reward beyond yourself, even if it won’t get recognized. By experiencing this on your own, without outside influence, your core will become stronger, and this will intersect with an unknown opportunity in the future. This is the foundation for success.

DO THE OPPOSITE

Posted in Horse by

I’ve been struggling with my Grand Prix horse the last few weeks. He is really tight and stiff in the back, and I have a hard time getting him looser in his canter. Since I work alone, I have to be self-motivated and try and come up with solutions. My first idea is to do the opposite of what I’m currently doing, just to shake things up. If I’m holding too tight on the reins, I let them long and loose. If I’m leaning back, I lean forward. If I’m kicking too much, I stop and just use light leg aids.

It is really hard to change yourself like that. My first reaction is to try and fix whatever happens when I do the opposite. That just sends me back to what wasn’t working, so I have to fight off that feeling. I try to stick with the opposite approach long enough to understand what is changing. Then I have to decide if I think it is enough of a change to warrant continuing on with it.

That is the problem in dressage. Changes can take days, weeks, or even months to manifest themselves. You have either been traveling down the wrong road and have to go back, or you picked the right thing and you’re closer to your goal. It is the waiting to find out that’s hard. And if you were wrong, you feel like an idiot for wasting all that time. I try not to let those feelings haunt me.  I learn a lot from my mistakes, it just takes me a long time to realize the learning.

I’m a member of Clinton Anderson’s No Worries Club. I really like it because he has a huge library of videos on his website that cover just about any problem you could ever have.

I went to the site and searched for dressage, and four videos came up. The first one featured a top dressage horse ridden by a professional, and the comments weren’t all that helpful.  The next three were a series with another dressage trainer. In one of the videos, Clinton put on a top hat and tails and rode the dressage horse. It was amazing. He is so humble and doesn’t take himself too seriously, even making fun of himself a little bit. He rode the horse really well, and clearly he’s an expert horseman. Watching that really buoyed my spirits.

I took notes and found that these videos gave me some great ideas for my own horses. Clinton is an expert at suppling a horse, and although it isn’t the’ dressage way’, it is extremely effective. I ended up having two great rides today. Thank you Clinton Anderson!

THE IMPORTANCE OF ACCOUNTING NOTES AND REFERENCES

Posted in Accounting by

Accounting departments will always experience some level of attrition. Of course we would like everyone we hire to stay on forever, but that’s not realistic. While there are many ways to ease the transition, one of the most effective is to train all members of your team to keep their work well-documented.

There’s nothing worse than when somebody leaves a company abruptly and there are no notes or backup for any of their regular projects. This situation highlights the value of spending the extra time on notes that clarify your work. It is always easier to document your work when it’s fresh in your mind.

The accounting department will have frequent interactions with various outside entities, and most of those will be by phone. It’s amazing how much easier it is to remember conversations by taking notes not only about the issue at hand, but also about any emotions felt during the interaction. If the person on the other end of the line was frustrating, or perhaps they were more helpful than expected, make note of it.  Sometimes hold music can be unusual enough to write about. Don’t worry that it may seem strange to others, if it helps your memory, write it.

For financial work papers, notes regarding unusual entries made during the month along with explanations, and references to additional backup are critical. They will be useful at year end, particularly if your financial statements are audited.

Take notes and reference assuming you will not be around to explain your work at a later time. Your work should be able to stand on its own.  It shouldn’t take a committee to explain what is going on with your work papers.

It can be tempting to take shortcuts with the referencing, especially if it’s something that is prepared frequently. Never assume what you do is obvious. Think in terms of making your eventual successor’s job easier. Set a high standard they will want to uphold.

BE STUBBORN

Posted in Horse by

I used to think I needed to train my dressage horses with someone regularly to make any progress. I’ve learned that it really depends on who you can find to train with. Once you’ve been riding for a while, you start to develop your own system. In dressage, there are plenty of opinions on what is right and wrong. Someone will always think you’re wrong and this can be a problem if you don’t recognize it.

The last few clinics I rode in actually made things worse for me. The instructors wanted to radically reconstruct everything I was doing. When someone tries to completely change you like, it makes you assume that everything you do is wrong. Maybe wrong to them, but not wrong to you. You can train incorrectly and you’ll get a result. It may not be the best result, but it is a result.

If you can find a kindred spirit, someone that connects with you, that allows your voice to be heard, then consider yourself very lucky. I had that for a very short period of time, which ended in 2006 with my mentor’s death. I look back on it now and I’m so glad I recognized what a gift it was to work with someone like that. He clearly knew more than me, but was humble about it. He told me he wasn’t God, and just told me what he saw. He said I was the trainer, and if he told me to do something that didn’t work, I was to ignore it.

Since he died, I’ve been searching for my next mentor. I’m still searching. I do learn from everyone I work with, as long as I can incorporate it into my system.  It fails when I try to embrace their entire method and abandon my own.  I second guess myself so much I become useless. This is something that must be avoided.

I don’t recommend working on your own for extended periods of time. But I will say this – it can work. It took me a long, long, time to train my first horse to Grand Prix. Even I didn’t think it was possible to do such a thing without a trainer. It was hard, frustrating, and I was off in the weeds more times than on the correct path. I pondered why it was that I managed to succeed, and I think it was stubbornness. I refused to give up in the face of overwhelming odds.

Of course I can’t rest – I’ve reached this goal and now I’ve set another one. I need to get better at Grand Prix. My horse is sound and relatively young (age 14). I still have days when I get frustrated, and tell myself to give up, but that’s one inner voice I am able to ignore. My other voice tells me to keep on, because if not now, when?  You never know what you can accomplish if you give up. That’s why I don’t!

5 TIPS FOR POWER MEETINGS

Posted in Accounting, Uncategorized by

Most people consider meetings boring and unproductive.  That’s because they are generally called without a plan, are too long, and don’t engage with those that attend. Try incorporating some of the ideas listed below to super-charge your meetings:

  1. Make them short. Keep your meeting to 15 minutes or less. A short meeting translates to a power packed productive session.
  2. Regular meetings. Meet once a week if possible. Bi-weekly is okay, but anything less than that isn’t often enough.
  3. Encourage everyone to share their ideas.  Everyone should know that this is the place to express themselves. If they have ideas to make their jobs more efficient, or would like to take on something new, this is the time to share it.
  4. Provide snacks. People love to attend meetings if there’s food involved – enough said!
  5. Attendance is optional. This one is a little counter-intuitive, but one advantage is if someone has a deadline or schedule conflict, you don’t have to reschedule the meeting for everyone else.

Try this system for a month. You’ll find your team better focused and higher functioning. This is a team that’s more supportive for you.