Tag: business

  • Burnout: Protect Yourself as a Business Owner

    Burnout: Protect Yourself as a Business Owner

    What makes business owners and entrepreneurs burnout?  Why is it important to understand the signs?  With so much focus on employee burnout and its impact on businesses we sometimes fail to take care of ourselves. A business owner’s burnout could be the reason their business suffered a breakdown.

    Entrepreneurs aren’t supernatural beings, and the sooner you realize this, the better it will be for you and your business. Here are a few ways you can protect yourself from burnout.

    Separate Yourself from the Business

    When entrepreneurs talk about their businesses, they sound so passionate. In fact, they’ll be the first to tell you that their employees can’t be as passionate as they are; business-wise.

    While passion is okay, being unable to separate your business from yourself is not. Too many entrepreneurs have this problem. The business slowly becomes them, and they pay no attention to their own health and wellbeing. We found a great video to help you create a self-care action plan to make caring for yourself as much of a priority as your business is.

    Notice the Signs of Burnout

    Do you have sleepless nights and worry over what makes business burnout? Worry and anxiety can lead to burnout and frustration. Are you dreading going in to the office or procrastinating on simple projects?

    As soon as you notice any of these signs, it’s time to take a step back and rest. Go on a vacation or an extended holiday. Whatever you choose, take some time off once you notice any of the signs of burnout.

    Delegate More

    Every entrepreneur has heard this or a version of this advice several times. The response is usually the same. “I can do it best so why delegate?” Well, you can’t be everywhere at the same time.

    Often in business, there will be many fires to put out simultaneously. You can’t fix it all yourself. Trying would only earn you a spot on the entrepreneur burnout list.

    If your staff can do it well, let them do it. After all, your employees are there to work for you, not the other way round. Only attend to a few important tasks at a time; then delegate the rest.

    Outsourcing is another great way of delegating your tasks.  Contact us if you would like someone to help you with bookkeeping, payroll, or managing your business licenses.

    Reflect More

    We tend to focus more on our current struggles than our wins. Entrepreneurs are even worse culprits than the regular person. Many focus on their current struggles so much that they fail to realize their wins.

    A sure-fire way to ensure that you celebrate your wins is by reflecting. Make time out to reflect on your business and the wins you’ve experienced. In addition to this, focusing on your wins leaves less time for you to worry about your business.

    Get off Work!

    One of the most destructive myths about being a business owner is how long entrepreneurs work. Memes with quotes about entrepreneurs working 20 hour days are a dime a dozen. But it shouldn’t be that way. Entrepreneurs aren’t superhumans; they also need some time away from work.

    Pack up your desk, shut down your computer, and leave when your employees are leaving. Whatever cannot be finished today can be finished tomorrow.

    Get off work. Even entrepreneurs can squeeze out a few hours of downtime outside of work. Setting up a default time to leave work every day might help you develop the habit of taking time off work to rewind.

    Focus on Quality, not Quantity

    A lot of young entrepreneurs are focused on signing on as many clients as they can get. It is all about the money and being able to say that they work with many clients.

    After signing these clients, the entrepreneur then struggles to stretch his available resources for so many clients. Firstly, this could lead to sub-par work, and secondly, the stress could lead to burnout.

    Don’t concern yourself so much with quantity.  Be more worried about the quality of clients and the service you offer.

    As a business owner, you protect yourself from burnout when you realize that you are one being. No matter how much you wish it, you can only be at one spot. So, make things easy for your business and yourself by making sure you don’t burnout.

  • Lockdown Tips to Help You Stay Healthy

    Lockdown Tips to Help You Stay Healthy

    Due to the COVID 19 pandemic, our free world has been put into lockdown. But we humans can adapt to any situation. And it is crucial to do our bit by staying home and social distancing. While we are at it, we must maintain healthy routines to stay healthy both physically and mentally.

    Things You Need to Consider During Lockdown to Stay Safe

    • COVID 19 is real, and despite the many theories surrounding it, it is here with us.
    • The coronavirus spreads easy and fast. 
    • Your body normally would fight any invader, if it is sound and battle-ready.
    • You have more chances of coming down with the disease if you are aged.
    • Lockdown will remain the best way of curtailing the spread of the virus. So we need to learn to live with lockdowns. 

    The real question is, how do you stay healthy during a lockdown?

    Eat Healthy Meals Containing Vegetables and Fruits

    Eat less processed and canned foods. It is recommended that we eat five portions of vegetables and fruits daily. Eat regularly and stick to a few unsalted snacks. You can also take Vitamin D supplements since it is recommended during winter months and if you’re going to be indoors more often.

    Drink Enough Water

    Drinking plenty of water has always been the doctor’s advice, so this is no exception. Staying hydrated at all times boosts your immune system and keeps your body battle-ready. 

    Exercise Regularly

    You can exercise daily or weekly in your garden or garage. You could dance, lift weights, or do other exercises. Also, you don’t need a sophisticated routine; some websites give free virtual exercise classes. 

    It’s also the perfect time to mow your lawn and clean your basement. These are activities that will help keep you active – another form of exercise, you’ll agree?

    Go Outside for a Walk

    To stay mentally and physically healthy, you need to get outside. Get a daily dose of fresh air. Leaving the house to go for a walk regularly will make you feel refreshed and lessen cabin fever.

    Keep in Touch

    Being away from loved ones can be tough. However, there are several ways to keep in touch. Do a Zoom call with friends and family. You can also start an online community group to check on your neighbors.

    Throwing a virtual get together is also a fantastic idea to connect with friends, family, and neighbors. There are many ideas and resources online to keep you connected.

    Practice Mindfulness

    Research has shown that meditation and mindfulness have several physical and mental advantages. You can do this at home to improve your wellbeing and help you remain calm and centered.

    Seek Medical Help if Needed

     Your medical needs are as important as your nutritional needs. Make sure you have the contact of your health care provider in case of any emergency. It’s also important to have a district or local health center around your area that you can visit when you are not feeling sound. 

    Your FIRST-AID box should be stocked up with basic home medicines, like pain relievers, vitamins, and supplements. If you use inhalers or any prescription medication, remember to add them to your grocery stock up list. 

    It’s normal to feel anxious and scared during this period of uncertainty. Bear in mind that things will get better. Remain calm and be kind to yourself.

    The general World Health Organization directives are to wash your hands often or use a sanitizer, and if you must go out, use your face mask. Stay Safe, Stay Strong, Stay Healthy.

    We care!

  • Physical Distancing vs. Social Distancing

    Physical Distancing vs. Social Distancing

    The changes we are experiencing from the Covid-19 pandemic might run deeper than we think. In just 4 months, so much has changed: the way we conduct businesses and relate with each other.  And now, even our psychological well-being during and after the pandemic might be affected as well due to social distancing.

    Steps have been taken all over the world to contain the spread of this virus as much as possible. The core idea behind these steps is keeping a certain distance from each other. For example sheltering-in-place, quarantine, and lockdown work under the premise of social distancing.

    The idea behind social distancing is one that scientists and health professionals believe will stop the spread of the virus. It demands that we stay away from gatherings and maintain at least 6 feet from each other.

    While this is effective (after all the society has bought into it), are we practicing social distancing the right way?

    The question then is, “Is this really social distancing, or do we need a reframing?” Many psychologists seem to think that we do need a new phrase to better embody the idea of staying apart to stay safe. Social distancing implies a total cessation of human interactions – both physically and mentally.

    Rather than social distancing, psychologists think that what we need is physical distancing.  Simply put, physical distancing means reducing close contact with others. The problem with social distancing is that its effects might not be so glaring now.

    After the pandemic is over, social distancing could have serious negative impacts on the psychological well-being of people.

    Jamil Zaki, Associate professor and psychologist at Stanford explains in this article that humans need to maintain a connection with each other, especially now. In times of distress, people stay grounded when they feel the care and presence of others around them.

    While we practice physical distancing, we need to find a way to be together even while apart. Thankfully, technology makes it easy for us to interact socially. Some apps and social media platforms make virtual social interactions accessible. Let’s take a look at some of them.

    Zoom

    This pandemic would forever change the trajectory of businesses and the way they are run. With Zoom, people can still carry out their business activities with video calls and make deals from the comfort of their homes. Alternatively, friends can also use Zoom to organize virtual coffee dates with each other.

    Video Calls

    Voice calls can only go so far. At some point, you’ll want to see your friends and family in real-time.   Whatsapp, Messenger, Instagram and very recently, Facebook all have video call options. You can stay apart from your friend physically, but nothing says you can’t call them up. These apps are more common than Zoom, so even if your friend doesn’t have Zoom, you can still see them in real-time.

    Group Activity Apps

    This pandemic has made some group activity apps very popular. Applications like House party, Netflix Party, and TikTok are making waves. These applications have provided a way for humans to remain social with each other.

    Since the lockdown, TikTok challenges have provided a virtual bridge where friends can meet and do fun stuff. House Party is another application that is providing the necessary service of human interaction.

    Being on lockdown doesn’t mean you can’t keep yourself entertained with your family and friends. Netflix Party has made it possible for friends to watch movies together and even chat while at it.

    To conclude, social distancing might not be what you and I need at this point. Being socially distant at this time could have severe psychological impacts on us. Hence, the need for socialization through virtual means.

    Remember also that the only way to flatten the curve of infections is to distance ourselves from each other but only physically, not socially. Stay home, stay safe, stay connected.

    From all of us here at Sound Accounts, we are wishing you a safe and speedy end to this quarantine. Please feel free to connect with us virtually

  • COMMON BOOKKEEPING MISTAKES

    COMMON BOOKKEEPING MISTAKES

    Data from the United States Small Business Administration show that about 50% of every new small business in the United States will fail within the first 5 years. So why do small businesses fail? Bad financial management.

    Good financial management begins with knowing some key rules of bookkeeping. From small businesses to big corporations, bookkeeping is a vital part of any business effort. Although it’s typically not the best job, your business needs bookkeeping services to succeed. After all, errors can cost your business significantly.

    Small businesses often make bookkeeping errors in their first years of operation, due to the lack of knowledge concerning correct accounting procedures. If you don’t have the money, time, or wish to become a certified bookkeeper, you can avoid some key pitfalls, which can impact on your business’ bottom line.

    So here are some common bookkeeping mistakes made by small businesses — and how to prevent making them.

    Doing it Yourself

    We only have 24-hours daily. So as a small business owner, you need to ensure that you’re filling them with just the most vital tasks. Although managing money is absolutely an important task, you don’t need to do it yourself.

    In actuality, if your bookkeeping and accounting skills aren’t strong, it’s best you hire someone to do it. Delegating this job to an expert will help you cross check for errors. Also, it gives you time to work on your business – and not in it.

    Employing the Wrong Accounting Method

    There are two principal business accounting methods: accrual and cash. The accrual method is simpler since it’s founded on the actual flow of money in and out of your business. The cash accounting is used essentially by sole proprietors without any inventory. That said, the accrual method documents expenses and income as they happen.

    As your business grow and get more complex, you should change to accrual accounting. This method makes it easier to match income to expenses correctly. Otherwise, your business might appear profitable during periods with some expenses and profitless during months with huge expenses, without understanding the difference.

    Failing to Monitor Reimbursable Expenses

    Often, small business owners pay for purchases with their credit card. After paying, they fail to follow these expenses.

    In essence, don’t mix business and personal spending. Keep your business and personal finances separate always. We advise small business owners to open a company checking account and keep business income into the account.

    Next, get an accountant to devise an income management strategy directing how money is removed from your business. The following factors will drive your income management strategy:

    • The profits that need to be reinvested back into your business
    • Your long-term personal financial plan.
    • Your annual cash flow needs

    Not Negotiating Vendor Terms

    A lot of small business owners often buy items from the same vendor always. If you do this, it’s essential to build a relationship with your vendors. Even if the purchases are little, always call and ask questions. Also, you can bargain longer payment terms or reduced pricing, allowing you to maintain more cash flow

    Not Keeping Hard Copies of Records

    In a world of Internet banking, several small business owners feel comfortable depending on the Internet to safeguard their records. Although going paperless is a no-stress and an eco-friendly option, always keep hard copies.

    Most banks only allow access to these records for some months. As a result, you may come up short if you wait till tax time to reconcile your bank statements.

    Lack of Communication

    Bookkeepers can do their job effectively if they’re filled in and briefed on every financial transaction. A common mistake is paying someone without reporting it or getting supplies and not giving the bookkeeper the necessary information or receipts.

    The Bottom Line…

    You can avoid these costly bookkeeping mistakes. Prepare accordingly and watch out for warning signs. When in doubt, get the right information, know the right bookkeeping rules, and ensure that your books are accurate all year-round.   If that all seems like too much work, please contact us today!  We are here for your bookkeeping needs.

    Your final balance sheet will thank you.

  • 7 TIPS TO PREVENT SMALL BUSINESS FRAUD

    7 TIPS TO PREVENT SMALL BUSINESS FRAUD

    Indeed, our world is raging with RFID hackers and identity theft that target people. Despite the size, why wouldn’t you be worried about the likelihoods of business fraud? From the small grocery store to an independent hair stylist, there are many avenues through which scammers can apply their malicious intent, and cheat you.

    No doubt, small businesses are exposed to business fraud. Yes, these businesses hire people they trust. But they can’t stop suspicious behavior—even though it’s from their esteemed partners.

    Research shows that fraud affects one in four small businesses yearly – with SMEs losing about $25.6 million annually.

    That said, small business frauds are occupational frauds, which usually ravage small businesses or start-ups. The Association for Certified Fraud Examiners (ACFE) has it that small businesses are generally more susceptible to organizational fraud than the larger ones.

    There are several reasons why these frauds occur, and we shall briefly highlight some of them.

    First, most business owners have their hands full and so have to rely on delegation. Here we see employees performing multiple functions. There are usually little or no checks and balances. It allows them to do some illegal stuff.

    Second, sometimes business owners become too trusting with employees. It can lead to the absence of formal procedure, which means things don’t get recorded. This situation makes fraudulent activities very easy and mostly unnoticed.

    Third, hiring fraudulent individuals can also make your business vulnerable to fraud. The reason is obvious.

    We have now seen certain situations that can lead to fraud. It is then vital to look at ways to prevent it.  But first, let’s take a look at some of the major fraudulent activities. Knowing this will provide awareness of how fraudsters carry out these fraudulent acts.

    Cash theft

    Cash theft is done through skimming, Larceny, or Fraudulent disbursement.

    False invoicing

    False invoicing involves presenting an invoice that does not relate to a real sale or payment. In cases like this, the perpetrators make the company pay for goods or services they did not receive.

    Identity theft

    Fraudsters or cybercriminals could steal a Company’s identity. It gives them access to the company’s vital documents.  There are also cases where these fraudsters pose as legitimate suppliers and then advise changes to existing payment arrangements.  You can uncover this type of fraud when real suppliers emerge.

    Check tampering

    Here, the fraudsters convert the organization’s funds by altering a check. Checks that have not been voided can be illegally cashed, with a forged signature.

    Payroll fraud

    An employee can make false claims for expense made and then demand a refund. Another common payroll fraud is the issue of “ghost worker.” This practice sees the payroll controller add a non-existent employee to the company’s payroll.

    If the company is operating a direct payroll deposit policy, it makes it easy for the “ghost funds” to go straight to the perpetrator’s account.

    A small business owner could have the best ideas and work hard to see the business thrive. However, fraudulent activities can threaten that success. How then can you stop this from happening? Below are 7 tips that can help prevent small business frauds in business.

    How to prevent small business frauds in business

    1. Put a fraud policy in place

    Fraud policy should indicate repercussions for committing fraud (termination of employment, prosecution). These policies should cover both the tangible and intangible assets in your company.

    2. Check the books from time to time

    It is essential that you do this as a business owner, as it helps you to ascertain that there are no discrepancies. You can ask your bank to give you the bank statements of your business accounts. It helps you monitor your cash flow.

    3. Get professionals or Accounting firms to handle your finances

    This will bring for more transparency and accountability. Also, demand for daily or weekly reports from the accounting department.

    4. Have a password policy

    Try to update or change your passwords from time to time. Also, make the passwords a bit complex or difficult to decipher.

    5. Segregate cash related functions

    Don’t let one employee perform all the accounting and bookkeeping duties. Let there be a team or department that handles that. Why? It will make them serve as watchdogs to one another.

    6. Be mindful of who you hire or do business with

     Avoid recruiting or dealing with individuals with fraudulent or dubious tendencies. Working with fraudulent people will expose your business to fraud. Avoid them!

    7. Restrict access to master file records of your vendors/clients

    Any changes to be made should require supporting documentation. It also applies to payroll as it helps to eliminate illegal payments or changes in pay rates.

    Building a business is an uphill task. When you put in so much work and effort, you should be able to rip the dividends and see your business grow. Fraud is a major threat to the growth of your business. So make sure you apply the above tips to keep your business safe and secure.

  • Year-End Wind Up – A Small Business Checklist

    Year-End Wind Up – A Small Business Checklist

    The end of the year is busy with the holidays, family obligations, and looming tax obligations. Taking some time to tie up the loose ends of the business year will help set you up for success for the coming year.  Let’s take a look at some of the steps you can take to wrap up your year with a big red bow!

    Get Organized

    The IRS offers a records retention schedule.  Business owners should take time annually to organize their files and purge old documents.  Ideally, you should store items by year with the exception of those documents the IRS suggests keeping permanently.  This way, you can also go through your boxes from past years and purge documents that are due for destruction.  Taking time to organize and purge your files will set you up for a clean start to the New Year.

    Assess Equipment Needs

    Spending your profits on equipment or furniture will help decrease your tax liability for that year. Take a look at your equipment.  Do your employees need new laptops, desk chairs, software?  There are great deals to be had  at the end of the year which could end up saving you money in the long run.

    Find Places to Save Money

    Year-end is a great time to evaluate your spending for that year.  Look at your spending on office supplies, utilities, or even subscriptions to see if there’s anything you can cut back on in the coming year.  You may be spending money on magazines that nobody reads or purchased software that is rarely used.  Even if you outsource your bookkeeping, it’s a good idea to look over these items yourself on an annual basis.

    Reward Employees

    Show your employees you care!  You can do this through bonuses, buying lunch for them, having an in-office party, holding a catered party off-site, or simply buying gift cards.  Take the time to thank them for their time, energy, and efforts in growing your business.  A small hand-written note in a card will go a long way to encouraging employee loyalty.

    Count Your Inventory

    We encourage our clients who keep inventory to do a count more than once per year.  As a small business, you can very easily fall victim to theft if you aren’t watching your inventory closely.  Some of our clients with high inventory turnover conduct monthly counts of their inventory.  This way, they can look for patterns of loss to determine if theft is occurring. Getting your inventory up to date is very important for your tax preparation efforts.

    Check Your Website and Social Media

    Go to your website and check every single link.  Try sending yourself a message from the “Contact Us” page.  Call the listed phone number to make sure it works.  Make sure your hours of operation and listed holidays are up to date.  This is often the first thing new members see and it doesn’t look good if your web page is full of outdated information and broken links.

    Verify Vendor Information

    Now is the time to look through your vendors and update any old or missing information.  Take a moment to look at inactive vendors and decide if rekindling a relationship with them is worth it.  If not, purge your system of inactive vendors for a cleaner list going forward.

    Set New Goals

    The is the perfect time to evaluate your current goals and set new ones for the coming year. Employees feel included and a bigger part of the organization when goals that were met throughout the year are shared with them. Use your financial statements, customer feedback, and team input to set new goals. While it’s a given that we are discussing financial goals, we suggest you also make room to evaluate professional and client goals, too.  It’s also a good idea to set Key Performance Measurements for your team and have them set personal and professional goals for themselves, too.

  • Sound Accounts Co-Owner, Michael, Discusses His Why

    Sound Accounts Co-Owner, Michael, Discusses His Why

    What I Thought I Knew and Why

    When I reflect on why we started Sound Accounts, I remember my first business and my lack of knowledge. I knew everything I needed to run my business, or so I believed.  Bank accounts were set up and had obtained the business license. I was set.

    What I didn’t have was a partner.  I didn’t have someone looking out for my interests or the experience I thought I did to be successful. I didn’t have Sound Accounts.

    Making Dreams Into Reality

    Sounds Accounts has been a dream of ours for over 10 years.  We constantly talk about what skills do we need. What is our mission. Who are our customers. The one thing that is always central, is people like us. Individuals who have a vision for a business. Those who have a drive to make their corner of the world a little better. Business owners who do their one thing well. People who don’t know what they don’t know.

    Starting a business is hard work. It requires determination and a lot of sacrifice. It also requires some one who can help you navigate what is unknown.

    What You Don’t Know

    When you start your business, you know two types of things; what you know and what you don’t know.  You know what your business is and what good or service you are trying to sell. Maybe you don’t know the ins and outs of business banking or how to do your taxes. But there is another category; what you don’t know you don’t know.

    A good example of that is city and/or county business licensing.  You may know that you need a state license. Do you know if you need a license for operating in your city or county? Are you required to have more than one? Where to even begin to searching for the answers?

    What I’ve Learned

    I have leaned that having a partner to help you navigate the unknown is not a sign of weakness. It is, however, a sign that you don’t know everything. As much as I wanted to admit that I knew everything about my first business, I had to accept that I didn’t. If I had partnered with a business, like Sound Accounts, I would have been much more successful.

    As we approach the holiday season, I hope that you take some time with your family and friends. I hope that you are successful in 2019 and beyond. I hope that you will see the strength in partnering with others who have been there and have the skills to help you be successful in the areas that you aren’t even aware that exist.

    Happy Holidays