The Key to a Professional Business Image

Having a designated business address is an important aspect of starting and growing a successful business. A business address is key to a professional image. It can enhance credibility and help to separate personal and business dealings. It can also be necessary for legal compliance and for receiving mail and packages related to the business. In today’s digital age, a corporeal business address may not be necessary for day-to-day operations. However, it still plays a vital role in building a strong and trustworthy brand. Whether you are starting a new business or looking to expand your current operations, finding the right business address provider can help you achieve your goals and take your business to the next level.

When looking for a business address provider, consider the following factors:

Location:

It is important to look for a provider with a strategic location. Pick an address in a reputable and convenient area. Aim to have it close to your target audience or business partners, as that will not only enhance your image but it will also make you seem reachable upon need.

Mail Receipt:

Make sure the provider offers secure and convenient mail receipt services. Some providers offer Package receipt while others may not. Some providers offer designated mailboxes while others may not. Assess your business needs and find the providers that fit what the business requires.

Professional Image:

Look for a provider that offers a professional and credible business address. For example, having an address in a corporate building vs having an address in a retail store. Only you can determine what works best for your business! Strategize, and choose a provider that can enhance your marketing and advertising expression.

Customer Service:

Choose a provider with responsive and helpful customer service. At times you may need to connect with the provider to ask a question or resolve an issue. It is during these times that you rely on your provider’s approachable customer service.

Cost:

Incorporate the cost of a business address provider in your budget. Review the services offered making sure they meet your business requirements. Shop around for affordable pricing so you do not exceed your budget.

Additional Services:

Look for providers that offer additional services, such as mail forwarding, virtual office services, and meeting room rentals. Even though you may not need all that as you start up your business; however, these are services you may need later on as the business grows.

Reputation:

Research the provider’s reputation. Search for online reviews and speak with other business owners. Your provider’s reputation will become your business reputation; so make an informed decision when choosing a business address provider.

Make it a part of your home business strategy

If you are a home business, consider having a business address. Establishing a professional image, meeting legal requirements, protecting privacy, and managing mail and packages are crucial to operating a business. Separating personal and business finances and improving marketing and advertising efforts is vital for growth. Getting a business address helps to establish credibility, promote privacy, and maintain a clear separation between personal and business dealings.

BizReflections

Grace Nasralla is the founder and senior business blogger at BizReflections. She is a Co-Owner at HUDDLESPACE which provides small business owners with offices for rent. This year (2024), Grace launched a loose leaf tea brand and named it Brew & Scone.

www.bizreflections.ca

January 27, 2023March 30, 2023

The worst nightmare for the business owner

As business owners, we set goals and strive to achieve them on a daily basis. Yet, as we go about doing our work, we realize that some tasks may fail and other tasks may succeed. And even though we are conscious of the undetermined results, we stay focused on the ultimate business objectives to guide us toward success. Overcoming obstacles is a characteristic that every business owner should master. Nevertheless, some obstacles, if not carefully dealt with, may turn into nightmares.

Let’s look at some of the potential worst nightmares for a business owner:

Financial complications

One of the worst nightmares for a business owner is experiencing risky financial problems. And I am talking about financial difficulties that may threaten the survival of a business. These troubles may be a sudden deflation of revenue or going bankrupt. It may also be facing substantial debt or having to lay off employees. Facing situations that require radical decisions that will determine the existence of the business can be a nightmare if not planned for. A part of business planning is incorporating a proactive plan that will assist business owners as they make decisions during these emergency situations.

Losing a major customer

Another nightmare is failing to retain a major customer. And if that was a long-term or high-value customer, it will make the situation an even more devastating blow; as it could potentially lead to significant financial losses. Identifying major customers, and building a retention strategy, will secure long-term relationships and maintain the sustainability of the business.

Legal issues

A small business may be subject to facing a wide range of legal issues, such as lawsuits, regulatory investigations, or maybe some intellectual property disputes. That can be a nightmare for small businesses as court issues are usually time-consuming. These legal issues are also expensive and potentially damaging to the reputation and credibility of any business.

Reputational damage

A small business’ reputation is a valuable asset, and any damage in the standing of a business will affect its credibility and trustworthiness. Once the reputation is harmed, it gives way for the negative press to fuss, customer complaints will skyrocket, and social media will backlash. And that can have serious consequences on the survival of a small business.

Loss of key personnel

Another major nightmare for a business is the sudden loss of a key staff member. Whether it be an important executive, a top salesperson, or a highly skilled worker; that can cause a major setback for a business. These unexpected crucial vacancies can impact the business’s ability to operate effectively and achieve its targets.

Natural disasters or other emergencies

When operating a business, it is crucial to allocate an emergency fund, and ensure that proper insurance is in place to cover natural disasters and other emergencies. Unpredicted crises such as earthquakes, hurricanes, floods, or power outages can disrupt a business’s operations and turn them into a nightmare. These disastrous conditions can cause significant damage to the facilities, equipment, and inventory. And in some cases, it can even result in human loss.

Cyber-attacks or data breaches

A significant nightmare for a business may be caused by a violation of cyber security. Cyber-attacks and data breaches are alarming as they result in the theft or loss of sensitive data. We have all heard of shocking stories of how customer information or proprietary information has gone missing in reputable banks or businesses. Such horrifying experiences can have serious consequences on the credibility or reliability of the business.

BizReflections

www.bizreflections.ca

November 25, 2022March 30, 2023

Google Search Tricks You Never Thought Exist

How often do you use Google search?

Google’s plan for its search feature seems to be geared to continuously increase the number of searches even without any submission by the user. We are at a point now where we ask Google for everything! Want to know the weather? Ask Google. Want to get the location of a business? Ask Google. What to know where a restaurant is? Ask Google.

Google seems to appreciate that people are using their search feature and they are definitely investing in it. Now we can perform searches that are based on keywords and get our results without even having to submit the search. Let’s test that:

Go to Google and type the following search keyword: Weather

Isn’t it helpful to save time and get the result instantly without even submitting the search? Wait, there’s more! Google search has extended its feature ability to do simple calculations.

Let’s try another function. This time let’s try the calculation: 567*44=

Google now instantly gives us the answer, without even submitting the inquiry for any calculation! That means that now Google search can replace our calculator for simple calculations. In fact, now Google has its own calculator under the search term: Calculator Google.

To take that further, Google search now does complex calculations, graph functions, and it solves geometry problems. It converts Fahrenheit to Celsius, currency and weight comparisons, and a lot more.

Google search even compares travel information including price comparison!

Future Features

More Google searches are coming up every year. And there will be new features with artificial intelligence in years to come including a 360-degree shopping experience that is still being worked on.

If you are a fan of Google products like I am, keep looking out for new search features regularly. Google’s latest technology will definitely continue to contribute efficiency to our daily work routine.

BizReflections

www.bizreflections.ca

June 27, 2022July 17, 2023

Reasons versus Excuses

What did I learn today as an entrepreneur?

Often, we offer a reason or excuse when something didn’t happen, or is not done.
First, let me start with my perception of the difference by defining each concept as I see it.
Excuse* – to me, this says, it was avoidable, and within our control to change the outcome.
Reason* – to me, this says, it was maybe not avoidable, but still within our control to change the outcome. Let’s look at Reasons versus Excuses.

*Disclaimer: I know and get there are other factors and circumstances where what I am sharing is NOT the case. Those instances are not what I am discussing in this article, but rather those situations where we have control of our decision-making processes involving our business.

Reasons versus Excuses

I want to pause us here and ask: Why is it we don’t spend as much energy on using a reason or excuse when something is successful, completed, or done? Is not the learning moment and evaluation of what led to the successes or accomplishments equally important as the time we invest in justifying why something did not happen or is not done?

When do we find ourselves articulating a reason or excuse?

Do we more often work on coming up with either of these when it comes to feeling the need to offer others one? Are we looking for empathy? Understanding? Justifying?

Do we in our own mind craft one for ourselves to make us feel better about the lack of a result?

I have finally come to the place where I won’t offer, volunteer, or blurb out a reason or excuse when something is not done, unaccomplished, or has not happened. It doesn’t change the fact! It doesn’t alter the outcome!

Don’t get me wrong – if I am asked, I will share my perception of why something has not gone as planned or has not occurred. Too often, however, I find the sharing of the reason or excuse is nothing more than providing myself or another party with the opportunity to play the ‘blame game’. This game does not, again, alter the outcome but boy how it can feed or deflate one’s ego! What are the differences between the words?

I’d love to hear your thoughts!

I do see the reason as being outside of our control happening, occurrence, and or the moment but that does not mean it has to dictate the outcome. We allow that. I see ‘reasons’ as being a problem and I try my best to live in a world where all problems have solutions. With this thought in mind when the reason appears, even outside of my control, I should be able to pivot around it and regain control to get the outcome I am needing.
Therefore, any reason and or excuse (for the most part) is not acceptable as to why something did not get done or occur.

I have started to phrase things differently. I feel this has been a huge moment in my personal and professional development, to be honest. I am at a place where I say (to myself), “This did not happen, and this is how I see it moving forward.” It takes the pressure from the disappointment and puts the focus on the forward movement. Movement is about finding a solution. That is powerful for both and all parties. Why linger on the “ugh” of what happened, or why it didn’t happen? Don’t we all just want to focus on the forward movement and momentum of how it is now going to take shape and occur?

Reason or excuse? Fact and movement? Let’s state the fact and get to the moving!

Submitted By:

Cheryl Clark of Clark Strategies | team@clarkstrategies.ca | www.clarkstrategies.ca

August 11, 2021March 30, 2023

Humanity: Craving For Authenticity

What happened to the days when people used to talk, laugh, and just be themselves? Is it just me or did the nature of relationships change? Is it the stress of this industrial, and rapidly developing technical world? Or is it a side effect of the pandemic era? Why is the world in turmoil, craving for authenticity?

This trend is even evident in kids. We find them messaging each other while they are in the same house or even in the same room at times. We find them so immersed in their world of tapping screens and totally disconnected from their surroundings. Should we succumb to this new reality of life?

I miss seeing smiles while walking the streets in our neighbourhood. I long to listen to people greeting each other as they crossroads during a jog or a stroll. I want to hear the loud voices of kids playing outside again. Is it the mask that is making us crave authenticity in people or did these difficult days really change us as humans?

Hopefully, I will not get misunderstood. I am not against technology. In fact, I work in that domain! And, I am not against staying safe by wearing a mask and refraining from shaking hands, at a time where illness is real. What I am questioning is the cause behind the damage that was done to our human authenticity. And at the same time, I am wondering if there is still a glimpse of hope for restoration.

HUMANITY

I looked up the meaning of Humanity on Google, and that is what I got from Vocabulary Dictionary. “The word humanity is from the Latin humanitas for “human nature, kindness.” Humanity includes all humans, but it can also refer to the kind feelings humans often have for each other.”

An algorithm was programed to define humanity as kindness, at a time when this new world has lost its humanity. How come everywhere we turn we see aggression, devastation, mistreatment, and injustice? How come every time we tune in to watch the news we are faced with a reality that is overtaken by unkindness and inhumanity.

I wonder where to find kindness in inflicting wars and destruction on others. And where to detect kindness in leaving elderly people secluded and isolated during a time where fear and confusion rule? Where is kindness when refugees are scattered across the globe seeking a home and when children spend years with little nutrition and lacking social re-enforcement? All that is topped with misplacement of humans and exploitation of governments and nations. We are living a time where our humanity has been altered to fit the requirements of an era that has robbed humanity of its true meaning. These days, we find that people are not just seeking to find authenticity in others. In fact, they are searching to find out how to restore the humanity they have lost themselves.

BETTER WORLD

World leaders are promising that better days are looming. However, is it too late to restore the brokenness in humanity? These past two years have left people emotionally, psychologically and, in some areas, physically shattered and scattered. Humanity is craving for the authenticity that brings balance to its being. It is longing to love and be loved again. Humanity is aching to exchange kindness and practice genuine acts of a healthy relationship.

Some areas of the world may be able to restore their new lifestyle and regain their new stability standards much easier than others. However, in areas of conflict, people are experiencing mistreatment and injustice day in and day out. They have forgotten what peace means. People have been forced to live one trauma after the other in such rapidity that they do not comprehend the situations they are in anymore. And with that, individuals have lost their judgment on how to deal with their ordeals and distress. I am talking about people that live on the frontline, in countries like Iraq, Lebanon, Syria, Afghanistan, etc. I am talking about human beings that were created and made to live kindness, love, and peace.

Will these people ever get to restore their distinct identity? Will they ever be able to mend their brokenness and heal their inner being? Or will they always live a life that is craving for its natural authenticity?

This blog post has also been published on VOCAL

BizReflections

www.bizreflections.ca

March 9, 2021July 17, 2023

Starting A Business: The Under-Appreciated Element

Listen as you read …

Many in this world dream of starting a business. However, establishing a business requires an entrepreneur’s character and resilience. An entrepreneur is driven by a dream and does whatever it takes to make his vision come true. At times, it may require long days and nights of work. There may be instances where one will face failures but learns from them. Other times it will require the ability to handle different types of personalities. And definitely, it expects a character that can handle success with grace.

A Guide to Starting a Business in Canada

While talking to people, I find it common to meet individuals that love to start their own business but do not really know where to start from. Some people begin with writing a business plan, but I personally favour a different approach. And I always recommend for my clients to start by finding their business dream.

Have You Found Your Business Dream?

We can start a business based on numbers lacking the passion that drives the business, but that will only be a project with a short lifespan. Or we may start a business with big dreams and a great passion to accomplish the work, but lacking structure, budget, and projections for profits and gains. And that is also a project with a short lifespan. Finding the business dream can be a good start as one will go into the business with enthusiasm and passion to accomplish the work. However, the structure has to be identified and defined as part of the process.

Yes… A business dream is a major element in starting a successful business and cannot be underappreciated as it is the driving force of business development.

Find your business dream

An Inspiring Vision

Once we find what our business dream is, then it’s time to think it through carefully and turn the dream into a vision. A vision is more defined and allows us to see what the final destination is like as we dive into our business journey.

See how the bigger picture is clear?

We have the dream, and we have the vision. Yes, it is time to move on and identify the product or service that will be offered to clients. In Addition, a decision has to be made in regards to the type and name of the business.

Structure and Finances

At this stage, it is a good time to write a business plan. It doesn’t have to be too complex and long, but it has to be measurable with a clear action plan and timeframes. A 1-year, 3-year, and 5-year plan is recommended as guidelines to help the business reach its important milestones. And as part of the planning process, we need to carefully think about the financial status of the business. Now is the time to reflect on whether we will be needing a bank loan or not. What type of Bank accounts will we need to operate the business? Will there be a need to rent an office or rent equipment? All these decisions may have financial ramifications in the future, and that is why it may require some planning before we move into the execution phase.

Get The Business Registered

Running a business requires an official status that we cannot neglect. If the business is planning to operate across Canada then it has to get registered with the Federal government. On the other hand, if the plan is to operate inside one specific Canadian province, then there is no need to register it at the Federal level, but we definitely will need to get it registered with the provincial government.

End the Startup phase

We still need to complete the financial structure and open the bank accounts or get the loans that we need to run the business. I also recommend short-term planning as the final step to starting a business. Set short-term measurable goals one or two weeks at a time and make sure to work hard to achieve them.

Notice how we started with the bigger picture and once we understood and mastered that part, we then moved on to a short-term action plan. That’s when the Startup process is complete and it’s time to move on to the execution phase.

A guide to starting a business in Canada

BizReflections

www.bizreflections.ca

Thank you for taking the time to read this blog post! You may follow BizReflections blog for future business related posts and updates. (FOLLOW button in sidebar). I would also like to invite you to subscribe to BizReflections YouTube channel. Our channel has a collection of business videos that equip small business owners for growth.

February 24, 2021February 22, 2023

Personal Vs Business Expenses: A Key Decision

A very important decision that small business owners regularly have to make is whether an expense should be considered a business expense or personal expense. This is a very important topic and can have a large impact on businesses when they come under scrutiny during a CRA review or audit. Many businesses do not have set guidelines or policies on making these decisions and owners often have to use their personal judgement when evaluating whether an expense is business or personal in nature. The CRA has very specific guidelines on criteria that businesses should consider when making these decisions.

The most important criteria would be whether the expense was incurred to earn income for the business. This is a very straightforward way of considering whether or not the expense is related to business activities. The logic is that the expenditure was necessary and vital to business activities. Using this metric will ensure that business owners will minimize their exposure by accidentally expensing items of a personal nature.

During a review or audit the CRA will review the general ledger and, should expenses appear that are out of the norm for the business’ core activity, ask why the expense was claimed. Failure to provide a good and clean answer will often result in the CRA agent digging deeper into the books and records of the company and will likely result in an unfavourable outcome for the business.

The importance of separating business and personal expenses appropriately cannot be overstated. If business owners use the criteria mentioned above, they will minimize their risk of having expenses disallowed during a CRA review or audit. If the CRA investigates and finds a large volume of personal expenses, not only will they be disallowed but the entity may be subject to non-deductible penalties and interest, and those responsible may have other legal consequences including further audits of the shareholders’ personal affairs.

Remember, if the expense was incurred by the business to earn revenue for the business, it is allowable. If it is at all questionable, professional advice should be sought or it should be considered personal in nature.

Submitted By:

Jonathan Carter, CPA, CMA | KATA Accounting Solutions Professional Corporation | (800)491-4803 | contact@kataaccounting.com | www.kataaccounting.com

February 20, 2021July 17, 2023

Meeting Customer Needs in a Pandemic Era

Meeting customer needs: the objective of every business.

Listen as you read …

Are you one of the enterprises that had to remodel its business processes in order to stay operating during the COVID-19 era? Or are you still running your business in survival mode? Meeting customer needs in a pandemic era have been the focus of every business.

The Difference

Innovation in remodeling the business is what differentiates businesses that are meeting their monthly revenue from businesses that are struggling to survive. The Pandemic has changed lifestyles and closed businesses and the need to restructure and remodel the business will allow more room to meet customer needs. The pandemic has really hit the business community hard, especially in trades like food, events, and hospitality industries.

A Business Guide

Here are Four tips to guide the business as it innovatively remodels its offerings:

Time to Reflect: Take time to reflect, evaluate and write down the current offerings of the business. It is very important to have a clear view of what’s current in order to identify the sudden change that took over since the pandemic started.
Identify Changes: With an open mind, identify the changes that were imposed on the business. Keep a log in order to enhance clarity of the situation . Sometimes business owners find it difficult to embrace change. However, in the world of business, change has proven to be evident. In normal days business owners have to keep watch for trends and quickly adapt to the changes that come with them. While the pandemic brought major changes to the business world, business owners still have to adapt and be open to alter their practices.
Brain storm: Reflect on the list of changes that the business had experienced one at a time. Write down innovative remodelling ideas for the business. It can be amendments to practices and operations, or it may be bringing in some new products or services. While brainstorming mark down creative and innovative ideas as they come to mind. And always keep customers as the target audience and core mark to the new model.
Create a Plan: Now that all the facts are at hand, it is time to organize the collected data and edit the list of remodelling ideas. With that we are equipped to establish a readiness and come up with a plan. The objective behind that process is to implement change. Modifications that are geared to regain consumer confidence and recommence consistent growth for the business.

Summary

That exercise will restructure the business model to retain and acquire customers in a pandemic era. Once that practice is complete, and the business starts running with the new model, then it is time to craft a marketing plan that works in sync with the new changes.

BizReflections

www.bizreflections.ca

Thank you for taking the time to read this blog post! You may follow BizReflections blog for future business related posts and updates. (FOLLOW button in sidebar). I would also like to invite you to subscribe to BizReflections YouTube channel. On our channel there is a collection of business videos that equip small business owners for growth.

December 17, 2020February 22, 2023

The Most Powerful Marketing Tool You’ll Ever Need!

Adriene Mishler is the producer and host of Yoga with Adriene. She dominates the online yoga space with over 8.53 million YouTube subscribers.

She is called the ‘People’s Yogi’.

But,

It wasn’t always like this.

Back in 2012 when Adriene got introduced to the online space and started uploading weekly yoga video content to her YouTube channel, little did she know that by 2020 she would have built a very successful business and an online global community of over 8 million people.

What was her secret?

The MOST powerful tool you can have in your marketing toolbox.

Consistency.

By sharing free high-quality yoga content on her channel every single week for over eight years she eventually became the online Go-To yoga instructor she is today.

Adriene is quick to point out that she was NOT an instant sensation.

For three solid years, she consistently uploaded weekly yoga videos – that’s 156 videos- with no love in return.

What she got instead were crickets.

Silence.

No subscribers.

Zero engagement.

When she eventually reached 100 subscribers, it was a moment of great jubilation.

Undaunted, Adriene stayed committed and consistently upload high-quality yoga videos every single week without missing a beat until she got to the tipping point, three years later.

That’s well over 600 videos in eight (8) years. Impressive!

Seth Godin Too

This level of discipline and consistency also reminds me of my personal marketing hero – Seth Godin, one of the world’s leading marketers, and Mr. Purple Cow himself.

If you subscribe to Seth’s newsletter, you’ll get an email EVERY SINGLE DAY, bar none. I mean 365 days of the year.

I guess that’s why he is worth millions.

So, it bears repeating.

CONSISTENCY is the MOST powerful marketing tool you’ll ever possess.

And, it’s FREE.

By harnessing the power of consistency, you outcompete, outsmart and outsell your competitors even if they are more talented and have more resources.

Consistency doesn’t mean you are always winning; what it means is that you are always taking action and moving one step closer to your goals.

Here is the flip side, inconsistency makes you stale, out of touch, and out of mind.

Just imagine if Adriene had thrown up her hands in despair during those three barren years when nothing seemed to have been happening.

What if she got frustrated and exited YouTube altogether? She would have missed the huge wins she now enjoys.

How about Joe Girard?

Considered a marketing genius and title holder of the World’s Greatest Salesman (conferred by the prestigious Guinness Book of World Records), Joe Girard sold a whopping 13,001 vehicles over the span of 15 years,

Joe was a car salesman at a Chevrolet dealership in the United States between 1963 and 1978.

In 1973 alone he sold 1,425 vehicles; an average of 127 per month or 32 per week.

In his best month, he sold 174 vehicles, and on his best day 18.

Let those numbers sink in for a bit.

Did Joe sell to the rich and famous?

Nope.

Did he sell wholesale or in bulk?

Nope.

He sold the old-fashioned way. One vehicle at a time.

Amazing! Right?

Are you wondering how could ordinary Joe accomplish such an extraordinary feat?

The secret to his mega-success?

Maybe he had a large team.

Maybe he had a HUGE network.

Maybe he wooed prospects with expensive gifts.

None of that was true.

For sure, he worked hard and was likable – so were his peers.

But what did he do that was so superior that propelled him to a league of his own?

He harnessed his marketing superpower. The power of consistency.

For 10 years, month after month.

Year after year.

Joe stayed top of mind without missing a beat.

Joe’s extraordinary system

Here is what Joe did extraordinarily well:

Every month he would send a personalized greeting card to his entire customer list
At the beginning of the new year (in January) he would send a card saying: “I like you”
Every February for Valentine’s Day he would send a card saying: “I like you.

Just imagine the time and labour it took to send out 13,000 cards to his customers each month.

Eventually, Joe had to hire an assistant.

Every card was handwritten, addressed, and sent through the postal system.

Joe was so successful that eventually, customers had to book an appointment in advance to see him.

His sales pipeline overflowed while other sales associates paced back and forth, praying and hoping for foot traffic.

What if:

Adriene had given up in frustration after three barren years when nothing was happening?

What if she had exited YouTube altogether?

She would have missed the huge wins she now experiences.

Would Seth have become a multi-millionaire and be recognized as one of the world’s top marketing influencers?

Would Joe have been awarded the prestigious title of World’s Greatest Salesman if they decided to throw in the towel when the going got rough and tough?

What if this group of standouts got up one day and ‘didn’t’ feel like it’ or got so ‘busy’ they slacked off or caved to someone who ticked them off?

You see, this is what truly separates the mediocre from the extraordinary.

Staying focused and remaining consistent with your marketing.

How about you? Share your thoughts.

Submitted By:

_{Dorothy Vernon-Brown helps business owners and entrepreneurs grab attention, convert leads faster and scale more quickly by using a proven end-to-end digital automation solution. She is the owner of AKB² Small Business Marketing}

December 16, 2020April 8, 2022

Dimensions of Modern Accounting

pensive female worker choosing folder with documents in modern office

Accounting as a discipline has evolved over a period of centuries. In the initial phase, it was thought to be restricted to mere bookkeeping or record-keeping of business transactions. However, gradually the importance of numbers contained in the accounting records of businesses became prominent and experts started generating a variety of reports to assist businesses to make informed decisions. In modern times accounting has thoroughly integrated with information technology to transform itself into a real-time information-based system that serves the needs of a variety of stakeholder groups interested in making an objective assessment of the financial health of a business. However, it is pathetic to know that majority of small businesses still regard accounting as mere bookkeeping and thus they remain oblivion to many of the benefits that modern accounting can render to enable them to make informed decisions.

Since the owner is the primary beneficiary of a business, therefore, it is imperative that he or she must take accounting as an essential support system to monitor the performance of the business from a variety of perspectives. Some of the key dimensions of modern accounting that are ironically ignored by owners of small businesses include the following.

Price setting of your products and services

The majority of small businesses set the prices of their products and services by following a rule of thumb approach or based on gut feeling. However, this is a naïve approach to price setting. Unless a business knows about its costs and their classification into fixed or variable components, a sustainable pricing policy cannot be adopted. Since price is a critical factor in generating sales, therefore, it must be viewed from a strategic or long-term perspective, which is not possible without analyzing the business’s cost structure. A variety of accounting methodologies, such as activity-based costing, marginal costing, absorption costing, and breakeven analysis may be used to determine a realistic pricing policy that ensures long-term growth in sales and profitability.

Proper understanding of profitability and liquidity of a business

For the majority of small businesses, profitability is the key determinant of the success of their business. However, it must be understood that profitability alone is not a guarantee that a business may survive in the long term unless its liquidity or solvency position remains intact. Profitability is the outcome of matching business expenses and receipts, while liquidity focuses on cash generation and the spending capacity of a business. Since cash is the king, therefore, a business with a strong liquidity base is more likely to survive in the long term than a business that merely generates more profits by relying on overtrading.

Knowing about Key Performance Indicators (KPIs) of a business

For many small businesses, the only KPI is the overall profitability of a business. However, if a business is asked how that profitability has arrived, they remain clueless about the factors that are responsible for the profitability or losses of a business. These factors may include classifying business expenses as avoidable and unavoidable, fixed and variable, marginal and incremental; and classifying sales of products and services as profitable and loss-making, stagnant and exponential, retrograde and progressive, etc. By developing and monitoring KPIs that focus on critical factors impacting a business, a successful business strategy may be developed that ensures long-term profitability and growth in the net worth of a business.

Tax impact of capital and revenue expenses:

A proper understating of the tax impact of capital and revenue expenses is vital to arrive at an accurate profitability figure. Many small businesses wrongly classify certain capital expenses as revenue expenses and vice versa. Consequently, the profitability figure may show erratic patterns and the tax liability of a business may be miscalculated.

Real time accounting systems:

Many small businesses keep their record in a conventional manner. However, nowadays many bookkeeping software are available in the market that may be used to develop a real-time-based accounting system that can be connected with spreadsheets for financial analysis.

Submitted by:

Baqar Bhatti LLB, CPA, CMA, CGMA | CEO & Owner of Panacea at Zenith | 289-952-3494 | accountants@pazca.com | www.pazca.com

December 14, 2020February 22, 2023

December: A Critical Month for the Small Business

Entrepreneurship was very important at our home as my parents were entrepreneurs. And despite the rush and hustle that always came with the month of December, it was the month we enjoyed the most. My Dad owned a retail store on a busy street in the city of Beirut. And one of the most memorable times I have for December is when my siblings and I used to alternate to go and help my Dad at the store. That was always the busiest time of the year. Yes, to some businesses it may be a busy month, but to others, it is the slowest time of the year. Whatever season December may mean for any business, it is considered a critical month to many owners and entrepreneurs. Many may not see it as a critical month yet, however, this blog may be an eye-opener to many!

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Steps To Consider

If December is a high season for the business, get the help it needs to meet customer requirements. However, if it is a slow season and has a decline in sales, it does not mean that time spent on planning and doing admin work gets undervalued. Here is a list of tasks that can be done in December to prepare the business for a successful year ahead.

Evaluate:

Evaluate the calendar year not only in terms of sales but also in terms of operations and customer relations. Review business practices and learn from mistakes done. Take another look at the marketing strategy and determine what has worked best in creating visibility for the brand. Evaluate what was done to increase following. Review sales reports and try to follow patterns for growth. Research the achievements of competitors and learn from them.

Reach out:

Use slow times to reach out to customers and check on them. Send season’s greetings that reflect sincere wishes and promises for future work relationships. Send out a newsletter with wishes for a successful new year. Assure customers that your business will always be there for them when they need it. Reaching out to current customers is very important to increasing customer retention. Use the season as an opportunity to establish contact with customers, leads, and everyone on the mailing list.

Plan:

Yes, December is the time to plan for the new year. Write your vision and set business objectives. Break them into goals and set timelines. Research business and marketing trends. Sketch out a marketing plan so the business stays ahead in brand visibility.

Get Organized:

Prepare for January/February income tax filing. Catch up on administrative work. Follow up with the accountant in order to complete income tax filing in a timely manner.

If December is not the busiest season for your business industry, it doesn’t mean it’s a slow month. It’s up to the business owner to use it wisely and make it a time to prepare for a successful year ahead.

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November 27, 2020April 8, 2022

10 Essential Tasks for Year End

The year is quickly coming to a close, and many businesses are well underway with their Q4 prep. This is a crucial time to get organized, so you don’t miss an important item on your to-do list. To help you close the year off strong and start the new year off on a good foot, make sure to add these items to your list to tackle before year end.

1. Meet with your accountant or bookkeeper

Meeting with your accountant or bookkeeper prepares you well for the coming tax season and allows you to be proactive with your finances in the new year. Avoid the stress and headache of scrambling for receipts when tax time comes around. Use the meeting to ask questions, get organized, and create a system that will ease the overwhelm of bookkeeping.

2. Record all transactions

Make sure that all transactions up to the year-end date have been recorded, including unpaid bills and invoices. This is a good time to gather all of your receipts and get organized. The length of time this takes will depend on how organized you’ve been during the year.

If you’re finding that this step becomes overwhelming, speak to your accountant or bookkeeper about creating a system that will help you stay organized and maintain your books throughout the year. Take advantage of modern software and apps to easily store your supporting documents.

3. Do a bank reconciliation

It’s important to make sure that the transactions you’ve recorded match what’s on your bank and credit card statements. Quickbooks Online makes bank reconciliations much easier. Speak with your bookkeeper about this process.

4. Review your financial statements

This includes your income statement and balance sheet. You want to look for items that stand out to you or don’t make sense, including balances that seem too high or too low, large differences in balances from the previous year, and mistakes that you can correct before handing them to your accountant.

5. Check accounts receivable

Look through your list of invoices and investigate any that are outstanding. You’ll want to regularly go through your accounts receivable throughout the year to make sure that you are being paid.

6. Check accounts payable

Go through each item in your aged payables report and pay any late bills. Recording all of your appropriate expenses helps reduce your tax bill.

7. Check your inventory

Record what you have in stock and identify what sold and what didn’t this year. If your business only offers services, determine which services sold and what didn’t. This is a great way to establish a strategy for the coming year and focus on items in demand and discontinue the ones that don’t produce an adequate ROI.

8. Prepare your tax documents

You can either prepare your income tax yourself or send over the documents to your accountant. A cloud-based accounting software like Quickbooks Online allows your accountant to access your business records online, making for a more streamlined and efficient process.

9. Plan for the new year

Once you’ve completed all of the necessary financial tasks and laid the groundwork for the coming year, you’re ready to strategize and build a solid plan for the new year. Whether it’s a goal to hit a certain number in sales, hiring for a new position, or strategizing a way that you can have more downtime, it’s essential to have a target to aim for. Be sure that your goals line up with your long-term objectives and that they are moving the needle for your business.

10. Take time to reflect

Often, business owners become immersed in the business’s day-to-day operations that the bigger picture takes a back seat. Going through the year-end checklist not only gives you a view of where your business is at, but it also gives you the opportunity to reflect – a critical piece of the puzzle when running a business.

Did you achieve the goals that you set out at the beginning of the year? Is your business providing you with the time, income, and joy that you had hoped for? Are you enjoying being a business owner? Taking the time to look back at all of what’s happened through the year helps you slow down and make the right decisions so you can hit the ground running in the new year.

Submitted By:

Sal Rezai – Cloud Accounting Specialist, Advanced QuickBooks ProAdvisor & QuickBooks Training Advisor and Founder at: www.accountingbysal.ca | info@accountingbysal.ca