Posts Tagged ‘business advice’

Do Your Business Metrics Need an Oil Change?

Friday, May 23rd, 2014

Did you ever notice that little sticker in the upper left-hand corner of your windshield? The one that informs you your next service date for changing the oil and tire rotation. As you fire up the ignition, the fuel gauge is activated and the miles per gallon information is displayed. The on-board computer lets you know that the headlights are in the automatic position and the tires are properly inflated. The navigation system may even provide a weather update or a construction delay on the interstate. Within a matter of seconds of entering your vehicle, you have virtually all of the important metrics for your upcoming road trip.

Your business metrics and performance indicators should be as easy as locating your vehicle’s metrics. The metrics need to be meaningful to you and your team and used as a decision making tool in the day-to-day operations of the business. Many business owners and managers use daily and quarterly metrics more frequently than the monthly financial statements to run the day to day operations.

Business Metrics To Consider

Your business’s on-board computer can churn metric after metric and ratio after ratio. However, the quality of the metrics is far more important than the quantity. One recommendation is to identify four to six ratios that are unique to your business and industry and continue to study the trends on a daily or weekly basis. As a general rule, every business should consider metrics in the following areas:

  • Customer Metrics: How many new customers have you acquired over the last six months? How many customers have you lost? What is the average profit margin for each customer?
  • Cash Flow Metrics: These metrics should be designed to measure the company’s ability to meet obligations as they come due. For example: Is your inventory turning? How old are your accounts receivable?
  • Sales Metrics: A company should have sales metrics to measure sales and whether the sales are satisfactory for the company.
  • Employee Metrics: These metrics could be designed to measure how effectively the company is hiring and managing its employees.
  • Borrowing Metrics: This metric will measure how the company is effectively managing its debt. 

Once the metrics have been determined than a “windshield sticker” or dashboard can be affixed to your technology devices and reviewed by the management team on a regular basis. In addition, an industry scorecard can be developed to measure how the business compares to the industry.

Just like the oil in a car, the business metrics will need to be changed or enhanced on a regular basis to reflect changes in the economy and the business cycle.

Safe travels and be on the look-out for orange construction barrels and detours. Check your metrics!

Business Metrics Help

If you need help determine which business metrics are right for your business, contact Rea & Associates. Our team of Ohio business consultants can help you determine which business metrics are needed for the success and growth of your business.

Author: Dave Cain, CPA (Dublin office)

 

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What Should You Do After Tax Season?

Monday, April 14th, 2014

Now that most of you have either filed your 2013 tax return or at least gathered your tax information and sent it off to your CPA, I know what you’re thinking. Phew! I’m done with my taxes for yet another year! But guess what? No, you aren’t!

Now is the time to start planning for next year. The sooner you plan ahead and strategize for next year’s tax season, the better off you may be. Not happy with the amount of taxes that you had to pay this past year? Not happy that you seem to work harder and harder only to pay more in taxes and get further behind? Start planning now for future tax seasons!

Tax Planning For the Future

Here are a few things you can start working on now to help create a better tax experience for yourself next year:

  • Develop an investment strategy. Most people don’t understand the affect this can have on your tax return. You can control when and how to take gains from your investments. You should work on developing a long-term investment strategy with your investment advisor.
  • Create a plan to sell property. Are you considering selling property sometime in the future? Did you know that there are ways to minimize taxes that need to be paid on the sale of property? This isn’t done by calling your financial advisor and letting them know you just sold some property. Get them involved now and discuss that you plan to sell some property in three to five years. Your financial advisor can help you structure the property sale and ultimately help you control the tax effect.
  • Establish a business plan. If you’re thinking about starting a new business, work with your financial advisor now to determine what tax savings you may be able to realize. Depending on the type of entity there could be significant tax savings down the road. 

Tax Planning Help

While there’s no single quick fix to solving all of your business and tax woes, planning now will certainly help you when tax season rolls around next year – and the year after that and so on. If you need help with your tax planning, contact Rea & Associates. Our team of Ohio tax planning professionals can help you develop a tax strategy that best suits you for years to come.

Author: Dave McCarthy, CPA, CSEP (Medina office)

 

Want to read some more articles related to tax planning? Check these posts out?

What Is The Difference Between Fixed Asset Expensing And Capitalization?

So Is It a Tax Credit Or a Tax Deduction?

How Will A Tax Credits and Incentives Plan Benefit Your Business?

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How Can Heartbleed Affect You and Your Business’s Online Identity?

Friday, April 11th, 2014

The Internet is a powerful tool – something that can make our lives (and businesses) easier. But it also can be our worst nightmare at times. If you keep up on the news, you may recall within the past few days hearing something about “Heartbleed.” No, this isn’t the name of a new rock-n-roll band. It’s the latest threat to your security on the Internet. News sites started reporting on this newest Internet threat earlier this week. But as more and more has become known about this Internet defect, it’s becoming clear that everyone with an online identity needs to be concerned about it.

Heartbleed is an exploit that basically allows malicious users to run a tool that will gain them access to a Web server and provide them with usernames and password from that server. What can this defect potentially affect? Every website on the Internet. Bank websites, social media sites, online merchant sites … the list goes on.

Within the past couple days, a Heartbleed defect was discovered that allows hackers to access chunks of a server’s memory that could contain Personally Identifiable Information (PII). Sites that integrate a Secure-Socket Layer (SSL) encryption certificate are now at risk of this new defect.

Steps For Protecting Your Online Identity

So what should you do to protect you and your business from this risk? Follow these steps:

  1. Take inventory of all of your online accounts and make a list of your accounts.
  2. Before changing your online passwords, contact the businesses of any accounts that may have SSL certificates to ensure that the company has issued new certificates. To check the “grade” of an SSL-secured site, you can visit Qualys SSL Labs website and input the URL of the site you’re checking. Sites are graded (A through F) on how secure they actual are.
  3. Change your passwords for each of your online accounts.
  4. Clear your Web browsers’ cache, cookies and history. Check out this ZDNet article for step-by-step instructions on how to do this.
  5. Closely monitor your bank and credit card statements to make sure there’s no unusual or suspect activity.
  6. If you receive emails or other online communication that promises a solution to your Heartbleed woes, don’t buy it. These communications are more than likely spam connected to dangerous malware or pointing you to malware. Heartbleed is a very complex online security threat, and there’s not a simple, quick fix for it.

Need Advice On Protecting Your Online Identity?

Following the steps outlined above will hopefully help lessen your chances of becoming a victim of identity theft and fraud. If you have questions or need additional guidance on how to protect your business, contact our IT audit professionals at Rea & Associates.

Author: Joe Welker, CISA (New Philadelphia office)

 

Looking for other blog posts about protecting your business’s online identity? Check these posts out:

Do You Know Who Has Access To Your IT Network?

How Can I Protect My Business From A Data Security Breach?

How Can You Prepare For The Retirement of Microsoft Windows XP?

 

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What Are 5 Things You Should Do Financially Now?

Tuesday, January 7th, 2014

As a small business owner, you probably find the end of the year a busy time. Before you know it, you find yourself into January trying to determine what the New Year will bring. One of the keys to being a successful business owner is taking a break from the day-to-day routine and spending some time doing valuable planning. This is sometimes referred to as working on your business, not just working in your business. To help you with this process, here are five things you should consider doing as a small business owner as you start the New Year.  (more…)

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Why Is A Relationship With Your Banker Important To Your Business?

Thursday, August 1st, 2013

You have a bank. But do you have a relationship with your bank? A relationship with your bank is important to the success of your business. A banker can be a great source of information and a valuable part of your team. Too often it seems that the banker is only contacted when money is tight or there is an immediate need for cash flow. A business then spends several weeks obtaining information for the banker and attempting to communicate the importance of the current need. If the business had an on-going relationship with the bank, then this process is much easier to handle for the banker and the business.  (more…)

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