Accounting & Bookkeeping

3 keys to building a great team

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Coach John Calipari has guided five teams to the NCAA basketball Final Four, earned one national championship and helped 29 players make it to the NBA during his 22-year college coaching career.  Christy Wright of EntreLeadership describes 3 keys to his success: 1.  Trust among team members 

2.  Communication

3.  Working together

Be intentional about implementing these 3 strategies as you build your team this year!

A must-have checklist for buying a business

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Fulling_Management_Buying_a_Business_large Have you ever gone grocery shopping without some type of shopping list? Maybe it’s written or memorized, or if you are like me, your list is typed out and organized by grocery aisle (this is not recommended for those of you who are “right brained”). While we may have some flexibility when doing grocery shopping, there is little room for error when it comes to buying a business.

[column col="1/2"] Fulling_Management_Buying_a_Business_quote

 

Fulling_Management_Buying_a_Business_small [/column] [column col="1/2"]Buying a business is obviously an important decision with many moving parts. When considering whether or not to purchase a business there are many things to consider. Our due diligence checklist shown below can start you on the path to buying and operating a successful business.


Checklist for buying a business

Company Tax Returns - last 4 years • Profit & Loss Statements - last 4 years • Current Balance Sheet and Profit & Loss StatementBank Statements - Last 2 years • General Ledger Detail - Past 2 years • Copy of current contracts (i.e. leases, supply agreements, jobs, etc.) • 940's & 941's payroll tax - last 4 years • Employee list, job functions, salaries and benefitsCopy of insurance policiesList of equipment that you will be purchasing


[/column] It is important that you find out all you can about the company you are buying. Depending on your industry and the nature of the purchase, there may be additional items to add to your checklist. In many cases a business purchaser will use the services of an accountant and an attorney for some due diligence process. By identifying issues in advance you will be better prepared to negotiate the final purchase contract and less likely to have disputes after the transaction has been completed.

[message_box title="Considering buying a business?" color="gray"] Our management and accounting services may be a perfect fit for helping your purchase turn into a profitable business. Let me help you review the documents from the checklist! Give me a call at (913) 254-7300 or email me at rusty@fullingmgmt.com. [/message_box]

Cash Flow: It's not a problem until it is gone!

Cash Flow: It's not a problem

Several years ago, I met a young man who had just received a sizeable family inheritance. Wanting to use his new wealth wisely, he decided to start his own business and use the money for his startup costs.

With his expertise in computer programming, his business was focused around developing a new software application. Knowing this would be a large task that he could not do on his own, he proceeded to hire a team of highly skilled computer programmers, leased expensive office space, and hired office staff to support the programming team.

He had done it. He was well on his way to accomplishing his goal when, six months into the business disaster struck. He was out of money.

The business owner had decided not to use Fulling Management & Accounting, Inc. or any other accounting firm to help him in planning ahead for cost of production, overhead, slow sales at startup and delays in accounts receivable. He just assumed the large inheritance would never run out.

Unfortunately, this business owner is not alone in his assumptions for business decisions rather than using data from solid cash flow management.

4 steps towards better cash flow

1.

Plan ahead

Create and write down a business plan. Identify your strengths and weaknesses within your business and identify opportunities as well as threats to accomplishing your business goals.

2.

Develop a spending plan (budget)

 List out your sales revenues and the expenses that it will take to run your business. You may want to break this down for each month, identifying months in which there may be fluctuations.

3.

Compare to industry standards

You are not alone. For most companies there is financial information available that allows you to compare your company to others within your same industry classification.

4.

Compare your actual Cash Flow to your Budget

Once you have your budget in place, use it! It does not have to be a rigid, no flexibility box, but it should be used as a guideline in comparing your actual sales and expenses. There may be times you need to adjust your budget as you foresee fluctuations.

Remember properly managing your cash flow can have a tremendous impact towards the success or failure of your company. Make sure you have the right management tools and expertise in place.