HEAD THE WARNING SIGNS OF A PERSONAL FINANCIAL CRISIS
Not too many people want to admit the hidden truth about their finances. To openly discuss this can be very painful for some. If we are to move forward and create a better financial image for ourselves and our families, we must be honest about the behavior patterns that have gotten us to where we are today. These sneaky sometimes often hidden agendas have only proven to be self serving. Remember, what’s done in the dark, does come to light at some point. Wouldn’t you rather it happen now than later? For those who do, we will marinate on the points below. For those that don’t, you will also marinate on the points made below.
WARNING 1: Having more than one credit card.
Credit should be used only for important unpredictable circumstances, like emergency plumbing. Unfortunately it’s used today as our own personal paycheck. Whenever the urge arises we charge it! Bad move on our parts. If you have more than 1 credit card, do yourself a favor and cut them up now. Out of sight, definitely out of mind.
WARNING 2: Hiding financial information
Do you feel the need to keep your purchases a secret from your partner? Do you buy major items on impulse? Do you make important financial decisions without consulting your partner? Have you ever “bet the farm” on some risky venture? Answering yes to any of these questions reveals that you are headed to some serious trouble. If you have to hide your information, you either have trust issues, which means you are with the wrong person, or you are ashamed of your behavior. Either way, get yourself some professional help!
WARNING 3: Denial
It’s not my fault! Stop playing the role of the victim. You got where you are by your own doing, not coincidence. No one held a gun to your head forcing you to make the decisions you made. Do a reality check on everything you’ve spent money on in the past month. Was it really necessary? Did it add to your physical, mental, or spiritual well being? If not, well, you know what to do with it.
TAKE THE STEPS TO CHANGING YOUR BEHAVIOR
Do more research when it comes to major purchases. Don’t only look at the price, also look at its functionality, the quality, and most importantly, will it add value to your existing condition.
Relationship issues can be your financial issues. If you are having marital problems or problems in your current relationship, often times this affects your spending habits. Research shows that impulse buying is directly related to lack of fulfillment or depression. Whether the relationship issues are with yourself or your significant other, either way, you must analyze the situation and prepare to take steps to reverse it.
Accelerate payments on your credit accounts. The experts tell you to make larger payments on higher interest loans. I say make larger payments on the loan that’s the longest. The longer a loan is outstanding, the larter the total interest will be over time. You can cut this in half by accelerating your payments .
Is bankruptcy really the solution? Only as a last resort. Don’t use bankruptcy as a bail out from your financial responsibilities. You created the problem; it’s your responsibility to erase it. It does take time. Remember you didn’t get into trouble over night.
Hard times call for harsh measures. We are in tough economic times, and it’s important that we all contribute by tightening the belts in our own financial households.
Jacqueline Ford
Financial Strategist
THE INS AND OUTS OF OUTSOURCING BOOKKEEPING
Outsourcing can be one of the most strategic management decisions that a small business could make. Daily struggles with trying to maintain operations can be overwhelming for most, and tragic for some. Trying to keep it all together will definitely take its toll on a small operation. A person can only handle but so much before reaching their breaking point. Besides, why would you want to put your business under such unnecessary stress, when you can outsource to alleviate the burdens of having to do it all?
In-House Bookkeeping
Although many small businesses believe it’s necessary to handle their own bookkeeping in order to cut cost, the downside is that managing your books in-house will minimize your ability to focus on the promotion and development of your business. Actually, in the long run, you will end up spending more. The time spent figuring out your debits and credits can be used more wisely and efficiently by allowing a skilled professional to handle the task. They are better equipped to work faster, which saves you money and time, and allows you to spend more time focusing on revenue building activity.
Out-of-House (Outsourcing) Bookkeeping
I can’t stress enough how cost effective this method is, but I will. Not only will you reduce operating costs such as payroll, employee benefits, and employment taxes, the cost savings can be shifted to areas that will promote business development, which in turn will increase revenues. Also, consider not having to spend time recruiting, training and maintaining staff. No more trouble with managing your staff’s behavior and personal issues. Besides, a professional working off site will be less subject to distractions from your office environment.
Outsourcing Abroad
With the rise in conducting business on a global scale, many companies are outsourcing internationally. Countries such as India, Canada, and Mexico, are becoming big contributors to the labor pools of American companies. As international governments relax their regulations and implement educational programs geared towards computer science and technology, the markets have become more competitive. Of course, the decision is very personal in nature and can be controversial. To remain loyal to your local economy versus profit by any means by outsourcing your labor pool to cheaper economies has been a heated debate for quite some time . If you decide to outsource to another country, keep in mind several factors which could affect your relationship, such as, language barriers, potential military conflicts, government regulations, time difference, and cultural differences.
Partnering for your success!
Jacqueline Ford
Financial Strategist
BOOKKEEPER CHOICES-WHO DO I CHOOSE?
Taking charge of who will post your bookkeeping entries
Whose gonna post this stuff? The first of many questions to be asked when trying to determine whose responsibility it will be to head up the accounting function. Many will take the road of the “least expensive” and try to do it themselves. But soon will find out that they’ve bit off more than they can chew. Next thing you know, it’s pushed to the side, and the old attitude of “I’ll handle this later” takes control. Soon afterwards, the paper pile has grown to an insurmountable heap! How do we avoid this scenario from playing over, and over again? Planning is the key to success! Decide whose responsibility it will be to handle this very important function, and delegate, delegate, delegate. But still, “What are my options?” you may ask. And, based on the options available to you, who will best fit this profile?
Local Yokels
These are the professionals in close proximity to your physical location. If you plan on having someone visit your office to service your needs, this can be the best solution. This choice will also help to save on travel charges. A good local professional will be in tune with the markets & economic development in the area. They generally are very familiar with local businesses and their products or services.
A friend of a friend of a friend
You remember being at last year’s barbecue, talking with Uncle Sonny about your problem, and he referred his wife’s cousin’s boyfriend’s daughter, because she just graduated from college with a degree in accounting. Do you choose her? Well, you’d better think twice. Referrals can be a great source of information, but remember to do your homework first. Interview this person and get feedback from other clients or associates in the industry. If you’re still skeptical, then ask for a free trial period of services.
Jack of all trades, master of none!
None other than Me, Myself, and I. We are all familiar with the business owner who tries to do it all themselves. What usually happens is that they end up spinning their wheels trying to figure out something, which doesn’t make absolute sense to them. This is very time consuming and costly. The resources spent in this vicious cycle could be better used in other areas of the business. But what of the business owner who has skills in this area? There is a belief that even the Accountant should have an Accountant to manage his/her records. Stop being “The Jack of All Trades, and Master of None”. Use your talents where they are best suited. For everything else, outsource or delegate to other professionals in the business. Allow those who have the time and expertise to do the job right. In the long run it will be well worth it.
Partnering for Your Success!
Jacqueline Ford
Financial Strategist