Tag Archives: business

SERVING THE INTERNAL CUSTOMER

Posted in Accounting by

In business, internal customers are all the people you interact with that are not the external customers. This includes co-workers, supervisors, and others who work in the various departments of your company. They must be treated just as respectfully as you would treat the external customer.

Generally, most of the people you work with will be professional and courteous. This makes it easy to treat them as you would an external customer. In the normal course of your work, you should have many chances to interact with them. You want to be sure that every interaction is positive, and that you leave a good impression.

Office politics sometimes makes us feel like it’s ok to treat some of our co-workers with disrespect. They may not be well liked, or your supervisor doesn’t like them, or maybe they aren’t that nice to you. Don’t fall into that trap.

Treat everyone as if they are potential customers. This can be especially difficult if they are rude to you. Don’t be sidetracked by your emotions. Keep on topic. If you are personally attacked, don’t even respond. Try to steer the conversation back toward the issue at hand. If that doesn’t work, tell the person you are no longer able to discuss it, and leave the area.

After an incident like that, it is natural to want to talk to someone about it, just to vent and get it out of your system. It is better to talk it over with a friend or a close co-worker, not your supervisor.  Your supervisor doesn’t have time to listen to your personal rant, and it reflects badly on you. It could cost you opportunities for advancement and additional responsibility, as it shows a lack of maturity on your part.

There are times when it may be appropriate to discuss an unpleasant interaction with your supervisor. For example, if you are disrespected by an executive from another department. Then it is reasonable that your supervisor would want to know about this, as there is very little you can do.

It reflects well on you when others feel confident looking to you for leadership.  Once you become more familiar with the company culture, you can immediately direct them to someone who can help. Or if possible, solve their problem right away. Even if it’s a phone call or email they could just as easily have done, you will be the hero if you take care of it. They will remember it and tell others, developing your reputation as a problem solver.

Be someone others can count on. It will open doors for you.

 

GAINING EFFICIENCES BY UPDATING OBSOLETE REPORTING TOOLS

Posted in Accounting by

As companies grow and mature, so do the tools they use for financial reporting. Many times this growth results in a very busy accounting department. It seems they can barely hold things together on a monthly basis, let alone innovate and improve. But unless innovation occurs, trouble awaits.

I’ve seen cases where spreadsheets that were created 15 years ago are still being used for current reporting purposes. In some cases, no substantial updates or changes have been made to these reporting tools. They’ve just been patched and linked together to the point that nobody understands where the numbers come from. If there’s an error, there’s no way to find it. The result is incorrect information being presented to management, excuses made, and lower level employees made to scramble to try and make it right.

Make some time every month to review at least one of your reporting processes. You may have to scrap the whole thing and start again. I remember a cash flow matrix that was prepared at one of my former companies. It took someone four hours per day to prepare it. Nobody knew how to read it, only that it all had to equal zero on the last page. I scrapped it and recreated an entirely new spreadsheet. We ended up tracking our cash flow even more efficiently, and it only took an hour a day.

You can’t be afraid to make wholesale changes like that. It does take time, and it can be frustrating. It will feel like you’re wasting time and should be doing more important things. Don’t let those thoughts crowd out the true purpose; to learn, innovate, grow, and always provide top-notch reports to your end user.

 

ALWAYS SERVE THE CUSTOMER

Posted in Accounting by

When we think of the customer, we often only consider the external customer. But everyone you interact with in your organization can be considered your customer. Everyone should receive the same level of high quality service from you. This post is about the external customer, the buyer of your company’s product or service.

Being in accounting, we are somewhat removed from the external customer, with the exception of Accounts Receivable. We get caught up in our routines and processes. If contacted by an outside customer, we take it as an interruption to our day. In our minds, we think, well, I’ll have to try and work this into my day, but it isn’t a priority. This is not excellent customer service.

You wouldn’t have a job without that external customer buying your company’s products or services. If a customer calls me I return the call the same day, in no case make the customer wait longer than 24 hours.

They may have what I think is a ridiculous demand or a complaint about something that has nothing to do with accounting. The last thing I want to do is tell them I can’t help them. Even worse is to tell them to call back and ask for someone else, or transfer them to another department never knowing if they got what they needed. I am their connection to the solution.  A customer will remember clearly that when they called your company, the first person that answered the phone took care of them. It reflects well on everyone.

I listen to them, find out what they want, then take the initiative to contact whoever I need to contact within our organization to handle the request. If I can take care of it, I do it right away.

No matter how much extra work it is to take care of a customer request, it should be a high priority. It should be done quickly, and if takes several days or weeks to complete, keep the customer updated on its progress either by email or phone. It is important to assure the customer that you are taking care of the issue.

I specialize in sales taxes and I know that customers are very sensitive about their invoices being correct. If errors are found in a customer’s receivable account, be pro-active and correct them. For example, there can be errors on sales tax charged on customer invoices. They are usually discovered when filing the monthly sales tax returns. If a customer is owed a credit, make sure it gets on their account.  Even for small amounts, have Accounts Receivable issue the credits and advise the customer. This keeps the level of trust the customer has for your company very high. The customer knows you are always looking out for their best interest.

You never know when you may need help from your customer. Establishing this trusting relationship will be valuable and can serve you well in your ongoing interactions with external customers.

 

THE IMPORTANCE OF ACTIVELY MANAGING YOUR STAFF

Posted in Accounting by

Taking the time to train and mentor your staff can’t be overlooked. There are some people who are self-motivated and naturally ask for more work, get more efficient, and take on more responsibility. Those are rare people. The rest must be trained, helped, and encouraged along the way. But they can shine just as much.

When you hire someone, you are responsible for helping them succeed. We all make bad hiring decisions at one time or another. But if things don’t work out right away, don’t become negative and look only at the problems. Try to seek out solutions.

This starts with having a meeting with your employee. Don’t go into it in attack mode. Have a list of compliments countered with constructive criticism. Couch it in a helpful tone.  For example, for an Accounts Receivable clerk, you might say this: “I noticed you come in early every day and get customer emails answered, which is great. Our customer comes first. But the cash receipts don’t get entered by the 3pm deadline. Is there something I can do to help?  Does something need to be changed?”

You are only going to find solutions by listening and understanding the other person’s perspective. Someone else may be distracting them from their work. Maybe they weren’t properly trained. There could be some personal problems. Get to the root of it.

The two of you should come up with a plan to make improvements. It is critical to get the employee involved in making the plan. Shared responsibility gives them motivation.  Have specific goals and deadlines. Plan to meet every week to see how things are going. When people have a stake in making things better, it gives them a feeling of freedom and empowerment. This is a far better motivator than money.

A person invested in their job will be the first to speak up if they sense a problem because they feel a duty to do things well. You have shown them that you are a good listener and have an open mind. And because you showed that you care and want to help them get better, they will of course come to you and seek out your advice.

I always try to train my staff so well that they could replace me. My relentless efforts to do this have never resulted in me being replaced. Instead I end up going to an even better place. I am seen as the big picture person, the thinker, the solver of problems.

Some people fear losing their jobs if their subordinates are smarter or know more than they do. In my experience these are the kind of people you want to support you. It will allow you to expand your learning horizons, take a longer vacation, or maybe even keep shorter hours. It all works because you know in your absence all critical tasks will be handled.

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.

YOU ARE THE BEST STEWARD OF YOUR RETIREMENT SAVINGS

Posted in Investing by

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.

THINK LIKE A MENTOR

Posted in Horse by

You may not know it, but you are influencing others all the time. I remember being at a horse show and talking to someone I’d known for about 20 years. We reminisced on what we were doing all those years ago, and she told me how she and her friend would always watch me ride my dressage tests, that they were so impressed with my riding and my horse. At the time, I was one of the only people showing in brown tack, and her friend was inspired by that and encouraged to use her brown tack too. This was over 20 years ago, and I never knew this.

In talking with someone else I’d recently met, she told me she’d always shown horses, but kept to herself; however she remembered me vividly, complimenting me on my riding and that she could tell how hard I worked, and couldn’t believe I wasn’t a professional. This is someone who I had been around for many years, and never met, and yet she knew so much about me. I was honored.

I meet quite a few people on the show circuit, I like to make new friends and encourage people to learn more about dressage. My mom called to tell me that her friend had met some young girls at the grocery store, mentioned that I rode, and told them about some success I had at a recent show.  The girls said they weren’t sure if they knew me, and walked away. A few moments later they came back and said that yes indeed, they did know me, they had even seen me at that particular show, and that I was so nice to them.

Even though this had just happened, I couldn’t remember interacting with those girls. But it made me so happy to know that I had left a positive impression. I try to always have a smile on my face and be ready to lend a hand. Showing can be stressful, and I’ve had my share of it. If someone forgets a piece of equipment, needs a towel fetched, or a test read, I try to be there.

It is very similar in business. You are always influencing those around you. If you are a manager, it is important to display a kind and helpful attitude toward the people you manage. It can literally change their life. Many times I would hire someone with great expectations, and for whatever reason, they would underperform. I felt responsible to help them, after all I decided to hire them, and I was ultimately responsible for the outcome.

I would meet with them, and come up with a progress plan, with actual goals they had to accomplish. It was important to do this in a non-confrontational way. I didn’t want to lecture them, I asked questions to determine the source of the problem and then it was up to me to take steps to fix it.

Whether this is more difficult than simply firing the person and moving on is hard to know. What I’ve found is that by developing an action plan and having regular meetings to discuss progress, one of two things can happen. They either improve, or they realize this job isn’t for them and look for another job.  This will happen in a relatively short period of time, normally 2-3 weeks.

I’ve rarely had to fire anyone.  If they start performing up to standards, I am right there to compliment them on their progress and increase their responsibilities. If they don’t, they start thinking about their skills, abilities, and goals and that motivates them to make a change. Leaving their current job might be the best thing for them, and it’s even better when they make the decision on their own.

When someone comes into my office and announces their resignation, but they are glowing with pride at finding a new job that fits what they want, it is good for both of us. Even though it didn’t work out for me, they learned valuable skills that will serve them later. It is a good feeling to know you contributed to a positive outcome for someone else. And then you can move on to your next opportunity.

HORSES TAUGHT ME HOW TO REALIZE SUCCESS IN BUSINESS

Posted in Horse by
2013 Region 6 Championships

2013 Region 6 Championships

For as long as I can remember, I’ve loved horses. I think I’ve ridden a horse almost every day for the last 30 years. When I was a kid I would go to the barn and hang out all day, hoping someone would let me ride their horse. Even when I had my own, I was still begging people to let me train theirs. To me, there’s nothing better than being in the saddle.

The last 20 years I’ve spent riding dressage horses. It can best be described as ‘horse ballet.’ This is a labor-intensive and largely unrewarding sport. It takes 5-7 years to train a horse from basics to the Olympic level of Grand Prix. Most horses don’t make it. You really have to pursue dressage because you love it. They say it takes 2 lifetimes to achieve a real understanding of dressage, and I believe it. Whenever I think I know it all, something comes along and changes it, brings me back, makes me feel like a beginner again.

The only reason I pursued a business degree, and became a CPA was because I thought that would be a well-paid career that would allow me to pursue my passion of riding. It has rewarded me with the financial means and flexibility to follow my dreams.

I approach my business career the same way I approach my horsemanship. I always strive for excellence. Early in my career, I was hired on as an accounting clerk at several different private companies. The accounting departments would be large when I started, and then as time went on, people left. They weren’t replaced.  I picked up their job duties, produced outstanding results, and earned promotions. I managed to work the same amount of hours, sometimes even less.

My superiors would notice. I wasn’t always rewarded monetarily, but they were very flexible when I asked for time off to ‘do my horse stuff’ and just told me ‘whatever you want as long as you get your work done.’  It meant so much to me. I always felt I was fairly compensated for my work, I was doing what I loved, and I thought life couldn’t get any better.

Over time I’ve come to recognize my superior organization skills as a valuable asset.  I hope to use this blog to share some of my experiences, usually through a story about my horses. Accounting tends to be dry and technical, we like our lists and our procedures. I want it to be dynamic and fun, and I want to help people become more organized so they also have the time to pursue their passion.

My horses have brought me so much joy and contentment in my life. Of course there are heartbreaking setbacks, and times when I get tired and want to give up, but I keep on. It is truly something wonderful.