Allen Bostrom - Universal Accounting » accounting

allenblog — Fri, 12 Aug 2011 21:36:53 +0000

I’ve worked in various environments, with both large and small corporations. The skills and mindset needed to successfully operate a small business are much different than those needed for a large company. I enjoyed reading an article in INC online, by Brian Hamilton dated August 9th. He provides the 7 Biggest Financial Mistakes Businesses Make – he’s writing to small businesses. To link to that article click here.

Numbers Effect Attitude

allenblog — Thu, 25 Feb 2010 18:58:56 +0000

Using the numbers from accounting is more than just a financial consideration. Of course used the wrong way, they can hurt morale. But when used effectively, they can be a strong motivating power to move the business forward.

To be most effective, there needs to be some training in what the numbers mean, and where they should be. With that knowledge, the employee’s personal drive to be better will likely take over. I have included some tips learned here at Universal Accounting in a recent Manage Smarter article entitled How to Motivate Employees by the Numbers http://bit.ly/bho64t . Enjoy!!

allenblog — Thu, 25 Feb 2010 18:42:09 +0000

With nearly 20 years in helping people have their own accounting and bookkeeping service, I’ve seen, investigated, and assisted in a lot of different start-up techniques. I’ve certainly experienced both the do’s and the don’ts. Because of that I’m always happy to provide some small nuggets of wisdom when asked. The other day a radio interviewer asked me several questions for a podcast. If you’re interested, go to http://www.startingabiz.com/. Hope it helps save people time in their startup.

Do Accountants Like Jokes?

allenblog — Thu, 03 Sep 2009 15:49:38 +0000

I know I do! Life and work can be stressful. Laughter is great medicine. Here’s a joke I came across on Mark Lee’s blog Accountant jokes and fun, ranked one of the Top 50 Accounting Blogs by BIZ.edu.

A newly qualified chartered accountant applies for a job advertised in the Times.
He is interviewed by the owner of a small business who has built it up from scratch.
“I need a qualified accountant,” says the man, “but mainly I’m looking for someone to do my worrying for me.”
“How do you mean?” says the accountant.
“I have lots of things to worry about, but I want someone else to worry about money matters.”
“OK,” says the accountant. “How much are you offering?”
“You can start on fifty thousand,” says the owner.
“Fifty thousand pounds?” exclaims the accountant, “How can a business like this afford  to pay so much?”
“That,” says the man, “is your first worry.”

Check out Mark’s blog for more accounting jokes.

Customer is King

allenblog — Tue, 01 Sep 2009 13:52:41 +0000

Which stores and restaurants and stores do you patronize most often? Are you treated poorly there? I would guess you are not! Not long ago, my oldest son managed a store for an AT&T cell phone dealer. His customers often came to his store straight from another dealer’s store a mile up the street, where they had been ignored or treated disrespectfully. While the location of his store was poor and his prices were often higher, my son won many customers for his employer because he provided the world class customer service that his competitor did not. Kudos to my son’s employer for building and sustaining a culture with such emphasis on customer service.

Statistics show that it is much less costly to keep the customers you already have than it is to find new customers. Once you have customers, you want to develop a loyalty in them so that they will never want to go elsewhere for the products and services they are buying from you right now.

A two-pronged plan is essential for dealing with existing customers. You must keep them happy with what they are buying from you already. Also, you want them to spend more money with you and more often. These are two critical objectives of a successful marketing plan for your business. Customer service is imperative in keeping customers satisfied and loyal. It is a true differentiator in the market place.

I found the article 7 Steps to Remarkable Customer Service linked to from Seth Godin’s excellent marketing blog, to be interesting. While the author Joel Spolsky’s examples are computer-related, the principles can be applied in any business.

Please share any good or bad customer service experiences with me in the comment box below!

For Accountants: What to do if a client is in the red?

allenblog — Fri, 28 Aug 2009 20:12:34 +0000

I am seeking thoughts, ideas and important questions to address regarding the topic of helping accounting clients who are in the red. I have been invited to speak on the profit recovery process described in my book, Red to Black in 30 Days, at the CBA conference (http://www.c-b-a.ca/conference.htm) in Toronto Canada in three weeks. What would you want to hear if you were in the audience? I will use this information to improve my presentation and address questions & issues most important to accountants and bookkeepers. Please include only those examples or questions that you don’t mind me sharing.

I would love to hear from you. Please post your comments below.

Tax Preparer Registration is Inevitable

allenblog — Mon, 24 Aug 2009 22:18:25 +0000

Every year, since 2004, there’s been chatter regarding tax preparer registration or licensing. Five years ago, there was even legislation proposed, but other priorities trumped it and it was allowed to die. Each year, since that time, someone has tried to carry the flag, but with minimal success even though the abuse of RALs and error rate for Earned Income Credit claims have been rising.

This year is different. In past years, the support for preparer licensing from various groups, including the IRS, wavered and any effort to get expert input was mixed, at best. This year, Commissioner Shulman of the IRS, has taken the wheel and made it his aim to propose a program to the President by yearend that will create some federal oversight for over 1 million tax preparers. Scheduled panel discussions in DC, with various industry groups, have begun the dialogue, which will continue for the next few months.

Similar to all industry licensing policies, the purpose of Commissioner Shulman’s proposal is twofold:

1) To ensure tax procedure competency among tax preparers

2) To provide the authority and tools for the IRS to police the industry against unprepared or unethical tax preparers.

Meeting this goal could take several different paths. Among the issues being considered in the panel discussions is what type of testing will be necessary, how quickly will this program be instituted, and what level of continuing professional education will be required.

Most agree that at some point every preparer will need to take a test. Whether or not this test is nationally standardized, online, open book, or developed and given by various bodies, has yet to be determined. Those currently testing tax preparers such as associations and educational providers, including Universal Accounting, are requesting that the IRS accept test results from various providers as long as the exams meet standard testing qualifiers.

Annual Continuing Professional Education (CPE) is certain to be required to maintain a registration or license. The likelihood is that it will be somewhere around 20 hours per year which can be earned simply by attending one of the inexpensive six IRS symposiums held throughout the US.

Grandfathering tax preparers that have accurately filed a considerable number of tax returns with an acceptable low error rate, or exempting tax preparers that file very few returns each year (maximum five, or $1,000 in billings) and VITA preparers are issues that are being considered.

It’s apparent that whatever is determined will need to be phased in to avoid a huge disruption during tax season. It’s my opinion that the most likely scenario is to see 2010 legislation become effective January 1, 2011. The first phase will require all commercial tax preparers to register with the IRS during 2011. Testing and CPE reporting will not be necessary until 2012 earliest, but more likely 2013 or 2014.

I’m looking forward to attending the September 2^nd Panel discussion and will try to keep you posted.