July 2002
Be A Bean Counter...Make Your Businesses More Successful
Amy E. Gibb, MBA, CFP
"Bean Counters" - Accountants, Number Crunchers, Detail People.
"Bean Counters" were the people in high school that wore funny clothes and did a lot of homework. They were the Science Geeks, Computer Nerds and the Math Wizes. These unfortunate people liked the details and were good at keeping track of things. The "Bean Counters" you went to high school with are now rich and successful people.
It is to late to go back to high school, but it is not to late to make some
changes in your business. Even if you don't have "Bean Counter" skills,
you can learn from them to make your businesses more successful.
Get a System - "Bean Counters" have a system. They
have professional financial statements completed monthly for their business.
They have a budget. They review their statements constantly and make needed
changes immediately. Because they have a system they can stop unprofitable business
and focus on profitable business. They can stop wasteful spending and reallocate
budgets to productive investment. In most businesses the difference between
breaking-even and making money is in the details.
Know Your Numbers - Hire a "Bean Counter". Find someone to produce professional financial statements for your business on a regular basis. A good bookkeeper or accountant will do the trick. Read your financial statements. Have your CPA or Business Advisor explain your financial statements and tell you what to look for. Commit to spend at least 2 hours a month reviewing your numbers.
Have a Budget - "Bean Counters" budget for profit.
Without a budget you are spilling your beans. You are at the whim of every sales
person or every request of your employees. You don't know when to say no or
when to say yes. You either spend too much or feel guilty for investing in your
company. Budgeting will provide discipline to your business and guarantee you
a profit.
Take Action - "Bean Counters" make improvements in their businesses constantly. Your financial statements will give you the information you need to make improvements in your business but you must take action to become more profitable. You may need to cut unprofitable lines of business, raise or lower prices, change suppliers, change the number of employees, and reduce waste.
Systems, Financial Statements, Budgets and Action are all key components to a successful business. Learn the skills of a "Bean Counter" and hire one to help you. You might surprise yourself. At your next high school reunion you might be mistaken for a "Bean Counter" not because of your wardrobe but because of the number of beans in your pocket!
Amy E. Gibb, MBA, CFP
President
Money $ense
Amy@MoneySenseSolutions.com, www.MoneySenseSolutions.com
303.494.5362
Financial Advising for individuals and business owners
"Money isn’t everything, Managing it is"
Amy E. Gibb, President of Money $ense specializes in Bookkeeping Services and Financial Advising for small businesses and individuals. She may be contacted at 303.494.5362, or for more information go to www.MoneySenseSolutions.com.