Surprise! Accounting is the Hot New Major

by: Donna Monday

There was a time when accounting was the boring college major that many people regretted signing up for. A constant barrage of numbers, statistics and spreadsheets was none too interesting. Boy, have times changed! Thanks to recent accounting scandals by companies like Enron, there is a high demand for accountants and auditors. According to the Job Outlook 2005 survey, accounting comes out on top as the most in-demand major on college campuses. Forget dot com start ups. Cleaning up a company’s accounting books is what’s in. But can accounting be sexy? “All the focus on accounting created a perception to students that accounting matters and is perhaps even sexy,” says Ira Solomon, head of the department of accountancy at the University of Illinois at Urbana-Champaign. Colleges are scrambling to find more accounting teachers and professors to replace those retiring. Not an easy task, since there are twice as many accounting faculty openings than applicants to fill them. Here are the top 10 most in-demand college majors as surveyed by the National Association of Colleges and Employers (NACE): 1) Accounting 2) Electrical Engineering 3) Mechanical Engineering 4) Business Administration/Management 5) Economics/Finance 6) Computer Science 7) Computer Engineering 8) Marketing/Marketing Management 9) Chemical Engineering 10) Information Sciences and Systems If you’re good with numbers and a stickler for details, you might want to consider accounting as a good career choice. However, you’ll probably have to take a number and wait in line behind all those other future accountant hopefuls. About the author: *********************** Copyright 2004 Donna Monday writes employment related articles for http://www.get-a-job-interview-quick-tips.com Circulated by Article Emporium

Starting An Online Business From Home

by: J. Elisha Burke

Many people believe that starting an online business from home is difficult. In fact it is quite easy. If you are already familiar with what product you will sell you will need to create or hire someone to produce an online website for you. This website should list the product or products you have available. If you will be selling your own products, make sure that your online business has a name that reflects you and what you offer. After this has been completed, you should inquire in your local state to learn the guidelines necessary for you to run a business from your home. Many states require that even an online business register with them and receive a business license. You will have to get the necessary forms to request this license. After you have obtained you license, you should also find out how running an online business from home will affect you tax situation. You would still need to report any income you make from your business, even if you are working at home. After all this paperwork is completed for you business, it is important to set up your home office for you new job. It is suggested that you have a separate space to conduct your business affairs. A separate phone line that customers can call is also very necessary and I strongly suggest you get a fax machine. You will lose customers if you are not able to be reached by telephone, fax and e-mail. Having a separate phone line from the rest of the house is essential! Other than a second phone line, it is also a good idea to purchase the necessary hardware and software for you home office. You will save lots of money if you have your own fax machine, scanner, and printer. Also it is probably wise to have the latest software additions for word processing and accounting. The accounting software is especially useful for you to keep track of all expenses and revenue for your online business. When you have established the business and things are going well, it is a good idea to consider outsourcing. This would mean hiring someone to take care of the little jobs that you would have to do such as email or letter correspondence or creating marketing brochures. By doing this, you will be able to focus on the more important areas of making money and marketing your business, which will be key to your success. Copyright 2005 Burke Publications All Rights Reserved About the author: Dr. J. E. Burke, an educator and entrepreneur, has been involved in various business enterprises via his business, Burke Publications for 11 years. Dr. Burke is an educator, writer and motivational speaker on a variety of topics. He is also known for his expertise on nonprofit organizations and grant proposal writing. Dr. Burke can be contacted athttp://burkepublications.comor http://news.burkepublications.com Circulated by Article Emporium

Small Business 101: Deadly Ignorance

by: Daniel Sitter

Copyright 2005 Daniel Sitter American small business is again in transition. Many employees, now working from home, are no longer tied to a geographic office and the woes of commuting. This is a relatively new phenomenon with hints of explosive sector growth in the days ahead. As this turbulent economy has forced downsizing, offshore restructuring and closures in large companies, many new entrepreneurs have been born. These are people, who instead of tirelessly attempting to find new employment and possibly enduring the same fate as previously experienced, are now starting small businesses and enjoying the benefits and perils of self-employment. There's an old story telling of an Admiral's decision to fight a battle against overwhelming odds. It seems that he was approaching the coast of an enemy land, with a larger naval force closing in from behind and a great army approaching from the land ahead. He prayed and then addressed his men. He announced that their battle weary forces would land on the beach ahead, dig in and prepare for the upcoming battle. There was no turning back and no other alternative. He ordered their ships burned after they landed. Their only choice was to fight to win or perish. They defeated their enemy because he eliminated any other escape route. They were fixed on the goal of survival and none other. That is the same attitude we as entrepreneurs must take. We can not afford to be denied. We must grow and prosper or our business will surely perish. We must constantly be looking for ways to cost-effectively market our business and increase sales. We must control costs and have sufficient cash flow for daily operations. Each of us must be persistent, relentless and vigilant. As CEO, we are the manufacturer, the sales team, the marketing department, legal office, accounting office, human resources manager, IT manager, the webmaster and so on. We can't afford to be all these positions. Our job is to sell! We must locate cost effective resources to help us grow and protect our investment in our business. The growth of the internet has changed our marketplace as well. Years ago, a small business owner decided upon a geographic chunk of the market and set up shop. Today, that shop is typically located in an office at the entrepreneur's home. The marketplace is now the world. The costs of marketing products and communicating worldwide are so low that almost anyone can take part in this revolution. Sophisticated voice mail, cell phones, email and effective ecommerce web sites now provide the illusion of size and grandeur for even the smallest home-based business. The end customer typically has no idea whether their supplier is local or across the world. He may be dressed in a shirt and tie or in his pajamas! All that typically matters is that the exchange of product and services is successfully made for a profit. It is critically important for the small, home-based entrepreneur to be aware of resources available to her as she makes this great leap. Too many people leap prematurely into business only to fail because of poor planning and insufficient financial resources. Do not get caught in this trap. Don't quit your day job until you have enough cash on hand to pay the bills for at least a year into your new venture. Become aware of and develop the resources available to you. You want everything possible going for you as you make this leap of faith into the entrepreneurial world. Here in South Carolina, we have the outstanding Women's Business Center (http://www.scwbc.org), a division of the SCMEP, South Carolina Manufacturers Extension Partnership (http://www.scmep.org), one of the best kept secrets available to businesses at all levels in our State. Other States have similar programs modeled after ours. These are incredible resources, partially funded by the State and private resources, available at little to no cost to entrepreneurs, with the purpose of aiding the successful growth of small business. Some additional national resources are: http://www.national business.org http://www.nase.org http://www.gosmallbiz.com http://www.empoweringbiz.com http://www.nfib.org http://www.qualitybusinessdirectory.com There are also numerous magazines devoted to small business, home-based business, marketing, sales, accounting, etc… Get tuned in to these and other resources available to you. Read your industry publications to stay abreast of competition and other facets of your business interests. A single legal issue, FACTA problem, accounting error or marketing miscue can put you out of business. In the case of FACTA, insufficient security or poor record-keeping these days could find you legally responsible for a single employee's identity fraud issue, which may end up being very costly. A single lawsuit or vendor dispute can shut you down. Many entrepreneurs are ignorant, ill-prepared and under-schooled with regard to these and other issues. Do not get caught in the deadly ignorance trap. There is more opportunity available today than ever before for the wise entrepreneur. Get all you ducks in a row before you make the fateful leap into the new world marketplace. Be smart, learn all you can as quickly as possible and take action on your ideas. Like the Admiral, be determined to win in the face of what may appear to be overwhelming adversity. About the author: Daniel Sitter is the author of the breakthrough e-book, Learning For Profit, the revolutionary how-to book providing simple, step-by-step instructions to teach people exactly how to learn new skills faster than ever before. It’s currently available from c|net’s download.com, the author’s web site www.learningforprofit.comand a variety of online book merchants. Mr. Sitter is a contributing writer for several online and traditional publications. His expertise includes sales, marketing, effective learning techniques, self-improvement and general business interests. Circulated by Article Emporium

Resume Writing and Preparation is Free Online

by: Donna Monday

Creating a strong resume is a very important part of applying for a job, either online or off line. There are many resume writing services that will help you build an impressive resume for job interviews. You can also learn how to write a resume for free by surfing the Internet for resume writing help. Many sites will show you tips and advice on choosing a resume style that works best for you. You can also find samples of resumes, resume templates, resume software, and examples of resume cover sheets or letters. Whether you’re looking to create a business resume, marketing resume, military resume, electronic resume, accounting resume, nursing resume, acting resume, sales resume, teacher resume, executive resume, student resume or a customer service resume, you can find great advice online with a little research. When preparing your resume, keep in mind that employers use resumes for several purposes: ** Screen Applicants – Most employers will only look at a resume for about 30 seconds to determine whether or not an applicant is a good fit for their organization. ** Develop Interview Questions – Statements on your resume can be used to formulate questions they may ask during an interview. ** Communication Skills – Employers want to see how well you express yourself. ** Qualifications – Employers will reference your resume when making hiring decisions based on how closely your qualifications match their needs. Writing a resume isn’t easy, but by studying various tips and advice, you can learn to create a type of resume that will get you one step closer to your ultimate goal of finding a great job. About the author: ********************* Copyright 2004 Donna Monday writes employment related articles for http://www.get-a-job-interview-quick-tips.com Circulated by Article Emporium

Resume Outline - Add Structure & Flow to Your Resume

by: Roger Clark

Building your resume, based on a resume outline will give it structure and flow... it provides an outline of all the things you should include in your resume. A resume is one of the most important documents you will ever create First you have to decide on a particular format for your resume. The two main formats in use today are chronological and functional format. Which one is best to use will depend greatly on your situation. To build your resume you can use free resume forms located on the web. This can provide you with directions if you are having trouble building your resume. A sample resume outline would include the following sections: The Heading Your resume should start with the heading. You can list your basic details so the employer can contact you. You can include your name, address, telephone number and e-mail address. NAME ADDRESS PHONE NUMBER EMAIL ADDRESS Job Objective This is an optional section of your resume outline. Here you can tell readers what the objective of your resume is and what you are looking for. Example: Entry-level accounting position with medium to large public accounting firm. The "Body" is the largest section of your resume outline This is where you can enter details about your education, work experience and additional information. The body contains: Education Here you can list your educational background. Educational Background Format: College, Degree, Major, Honors, Relevant Courses Sample Education Section: Drexel University BA Educational Leadership, May 2000 If you have a college education, do not list your high school information. You can also list any honors for academic excellence in this section of your resume outline. If you are a graduating senior or looking for an internship, you can add a relevant courses section to your resume outline. Employment History This is an important part of the resume. Here you can list your previous employment history. If you are using a chronological resume format, you should list the most recent job positions first on your resume outline. Example: Drug Emporium, Wayne, PA Cashier, June to September, 2001 Supervised customer check out Handled the cash register Managed and stocked merchandise You can also list relevant volunteer activities or work experience programs if you do not have much job experience. Achievements If you have any special achievements you would like to announce, you can use this section. Maybe you made a suggestion that saved your previous boss a ton of money. You can list it in this section of your resume outline. Special Skills The remaining sections of the resume can include additional skills such as fluency in a foreign language. References You should leave this section out altogether. References are not required at this stage and stating that 'References are available upon request' is assumed anyway... so you just end up wasting valuable space! Additional Optional Sections You can add additional sections to your resume outline such as volunteer work, community involvement or honors. You also have to decide on the layout of your resume. Choose a common font and medium range font-size, such as 12. Decide how you want to highlight the headings of the different sections. You can use bold, italics or underline to highlight section headings. Some people use bold and a larger font size to highlight their name on the resume. The last part of your resume will probably receive little focus, so if you have a marketable skill or outstanding honor you should try to incorporate them in earlier sections of your resume. You can find a lot of resources on the web that can provide you with free outlines and sample resume layouts. Usually an outline will differ if the resume is for a recent college graduate or a long time professional. Choose a resume outline that is specific to your career field and you can build your resume around that outline. About the author: Roger Clark (BSc) has over 25 years experience in career development & recruitment at a senior level through top management positions he has held with major international companies. You can visit his "Top Career Resumes" website for a wealth of top quality information relating to the employment market. http://www.top-career-resumes.com http://www.top-career-resumes.com/resume-outline Circulated by Article Emporium

Recruiting Excellent Job Candidates:

by: David Leonhardt

Six Easy Search Tips to Get the Cream of the Crop By David Leonhardt An independent recruiter, recruiting agency or executive search firm is charged with tracking down excellent potential candidates for available job positions. Despite the fact that there are innumerable people seeking positions of employment in the 21st century, it often seems to a typical recruiting agency that qualified men and women are few and far between. Here are six easy tips that recruiting services, staffing firms, or executive search firms should keep in mind when on the hunt for outstanding potential job candidates in the 21st century. These tips are equally applicable to companies undertaking their own search without the help of recruiting agency services. Indeed, the headaches associated with finding qualified personnel is magnified for a company undertaking its own recruitment efforts. 1. Post an Ad on an Industry-specific Job Board. Oftentimes, a recruiter will take a scattershot approach to finding candidates that are worthy of consideration for an available position. They broadcast far and wide the fact that a certain position is open and available, in big city newspapers and on major Internet job boards. If a recruiting agency were more thoughtful about its recruitment efforts, it would realize the benefits of positing an announcement of an available position on an industry-specific Internet job board. By posting in a selective and admittedly limited manner, recruiters and staffing firms would be reaching out precisely to the pool of people most likely to be qualified for an open position. One excellent tool for finding industry-specific job boards can be accessed at: http://www.onlinerecruitersdirectory.com/jobboard.php 2. Use Recruiters that Specialize in a Given Field As with advertising, choosing an effective recruiter might be just a matter of targeting, particularly for a managerial or executive position. These positions can be very hard for in-house personnel directors and human resource managers. While these people do have responsibility for hiring, the search for a new employee with skills beyond the norm for their company can best be targeted by a professional executive head hunter. The same can be said for specialized fields, such as accounting or information systems. In-house human resources staff might know all about pharmaceutical skill-sets required for a multitude of research and administration positions, but they might rarely have to deal with hiring staff to track money or to keep the computers functioning. That's when recruiting agency services specializing in IT or in accounting can come in handy. 3. Develop an In-House Referral Program. In many instances, exiting staff members can help speed up the search for quality job candidates. Employees often have contacts elsewhere within the industry, some of which may be looking for a change of employment. By cultivating this internal resource, a personnel director can develop a wealth of ready information about prospective employees who might well serve the organization as valued employees. 4. Search Resumes Posted on Job Boards In addition to advertising on an industry specific job board, a diligent personnel director or recruiting agency will want to take the time to search and consider resumes that have been posted on job boards. Often, a person pounding the pavement looking for employment may not have the time to take in and review all of the various available positions that have been posted on a every job board. This is even more true if a given prospect is a highly sought-after candidate, who might be still busy in a current position of responsibility. 5 .Use a Directory of Recruiters. Because there are so many different type of recruiters in business in the 21st century it can often be difficult for in-house human resources staff to pinpoint the recruiter that will be best able to meet the needs of a given employee recruitment campaign. But there are resources available, such as directories of recruiters. One such directory is:http://www.onlinerecruitersdirectory.com By using a professional directory, in-house human resources staff will be able to identify the most appropriate resources for their company and for the recruiting task at hand. Even staffing firms can benefit from such a recruiters directory to seek help in a specialized field they don't often work with. 6. Don’t Rush the Process. Finally, while it is an overused saying, “Rome wasn’t built in a day.” In the same vein, 99 times out of 100 there is no need to rush the process of seeking, identifying and hiring a new employee, particularly an executive level employee. A personnel director should take his or her time to identify, screen, interview and hire the best candidate. Throughout this process, a human resources manager or specialist will rely on the services and support tools identified in this article. By using these tips, in the long run the best possible candidate for a given position will end up being hired, and the company will benefit from the best possible employees. About the author: David Leonhardt is a freelance writer: http://www.seo-writer.net/ He wrote this article for the Online Recruiters Directory: http://www.onlinerecruitersdirectory.com/about.php Circulated by Article Emporium

Recruiters: The Challenges of Executive Head Hunters

by: David Leonhardt

(and how the Internet is solving them) By David Leonhardt Once upon a time, head hunters were no more than common cannibals. Some people still view them that way, but executive recruiters are a vital link in a chain that keeps major enterprises functioning well. The top positions at any organization dictate the fortunes of the company, the shareholders and the employees ... and often the communities in which they are located. A good executive head hunter can ensure that new company executives have the skills required for the position and the challenges ahead. He can also ensure that the right executive is chosen, one whose style will flourish in the specific environment of that company. However, modern executive recruiters face challenges to be effective. I caught up with Esther Barzel, co-owner of the Online Recruiter Directory ( http://www.onlinerecruitersdirectory.com ). Q: What are the main challenges of executive head hunters in today's business climate? A: To start with, the geographic net has become much wider. A head hunter in , say, New York City or Toronto, can no longer rely on finding the right candidate right in town. In fact, the ideal candidate might be just minutes away by Internet, but he might be located in another country or even on another continent. We are looking at a new breed of executive recruiter. Q: The Internet should make his job easier, right? A: Yes...and no. He has to post requirements in more places and sift through more potential candidates to find the jewel he seeks. So his workload has actually increased. Q: Plus, I presume, he still faces the challenges of yesteryear? A: That's right. He still has to make contact with potential candidates, conduct preliminary interviews, set up meetings with the company, attend to minute details, brief the interviewer, etc. Q: What about follow-up? A: Yes, there is, of course, follow-up required after every interview, both with the client and with the prospect. It's a busy job. Q: So how does the Internet make life easier for an executive recruiter? A: Now you have online communities and bulletin boards, such as Monster.com, where you can place ads for positions. This makes it somewhat easier to cast one's net. Directories like ours help head hunters attract clients, so they can spend more recruiting and less time on business development. Q: Don't online bulletin boards and directories just mean the head hunter has to spend more time in more places? A: Yes and no. Online resources are more easily searched than, say, paper. Our recruiter directory gives employers the chance to search by geography or by vocation, or by the type of position. This means they can find a recruiter that specializes in pharmaceutical sales, or who specializes in accounting, or whatever field. The head hunter spends less time answering questions from people who will never be their clients. Q: And I assume it works both ways? A: Yes, the recruiter gets resumes from only those people who are likely candidates for the types of positions he works on. The pharmaceutical recruiter, for example will not get a resume from someone whose background is in aeronautical engineering. Q: Wow, that's a mouthful. I don't know if I could even repeat that. A: Many executive recruiters could not repeat it, either. So the Internet is making it easier for them to receive resumes targeted to their field of expertise, saving them time...not to mention overexertion of their tongues. On that humorous note, we thank Esther for taking the time to explain how the Internet is making life both more complex and easier for executive recruiters and head hunters. About the author: David Leonhardt is a freelance writer: http://www.seo-writer/freelance/writer.html More about head hunter challenges: http://www.onlinerecruitersdirectory.com/head-hunters.html More about executive recruiter challenges: http://www.onlinerecruitersdirectory.com/executive-recruiters.html More about Esther Barzel's recruiting services http://www.onlinerecruitersdirectory.com/about.php Circulated by Article Emporium

Press ReleaseUCLA Alumni Association Retains the Accounting Firm of Singer Lewak Greenbaum & Goldstein, LLP

by:

The UCLA Alumni Association today announced that they have selected the accounting firm of Singer Lewak Greenbaum & Goldstein, LLP (SLGG) as its new independent auditor. Los Angeles, CA July 17, 2004 -- The UCLA Alumni Association today announced that they have selected the accounting firm of Singer Lewak Greenbaum & Goldstein, LLP (SLGG) as its new independent auditor. SLGG, a leading regional CPA & Management Consulting firm, provides accounting, tax and management consultant services for a broad range of clients including individuals, family-owned businesses, private and public companies as well as nonprofit organizations. "The Association is entering an exciting new phase in its history. We wanted a firm with roots in the Los Angeles community, a depth of resources and the adaptability necessary to support a dynamic organization's business requirements while ensuring the finest audit support available. SLGG has a solid reputation for professionalism and service with proven expertise," said Keith Brant '83, M.A. '88, Ph.D. ’95, assistant vice chancellor, alumni relations and executive director, UCLA Alumni Association "We are excited to work with the UCLA Alumni Association, strengthening further our ties to UCLA community. We look forward to growing together as we help this innovative and award-winning Association achieve its vision to serve more than 300,000 UCLA alumni," said Lewis Sharpstone, partner in charge of nonprofit practice group at SLGG. About SLGG Singer Lewak Greenbaum & Goldstein LLP is the largest certified public accounting firm headquartered in Los Angeles, California. Established in 1959, the firm has grown to more than 150 professionals and support staff. Today we serve a broad range of clients ranging from individuals to family-owned businesses to public companies of all sizes. Singer Lewak Greenbaum & Goldstein, LLP has offices in Los Angeles, Santa Ana, and Ontario, California. For information, visit www.slgg.com. About UCLA Alumni Association One of the top organizations of its kind in the world, the UCLA Alumni Association boasts more than 88,000 members and serves as liaison between UCLA and its more than 300,000 living alumni around the world. Founded in 1936, the Association is proud of its long history of developing support for UCLA and its mission in the Los Angeles community and throughout California while offering UCLA alumni a wide array of services, ranging from professional networking to educational travel. For information about the Association, visit www.UCLAlumni.net. Media Contact: Mark Davis, director of communications UCLA Alumni Association 310-206-4715 MarkD@UCLAlumni.net                               About the author: . Circulated by Article Emporium

Policies and Procedures Used as Management Key

by: Chris Anderson

Managers know the difficulty of getting people to do the right things the right way. And employees need their expertise and understanding of the way things should be done. But how do you get it across so it actually sticks? The answer is well-defined policies and procedures. Quickly Convey What’s Right Managers can convey the exact way things should be done with policies and procedures, and they can do it faster than ever with pre-written documents. This speeds an organization’s standard operating procedures project effectiveness to get results. Create Strong Operating Procedures Departmentally-focused manuals provide an excellent opportunity to create strong, consistent Standard Operating Procedures across multiple functions. This includes added savings of time and resources. Departments that benefit with improved results include: • CEO Management - Build an effective management procedures system based on best practices for the entire organization • CFO Controller - Simplify the job as a CFO or Controller, and speed the development of comprehensive Accounting and HR manuals • ISO 9001 Quality Manager - Create ISO 9001 quality policies and procedures manual with prewritten policies, procedures and forms • Human Resources Manager - Create HR policies and procedures manual with prewritten policies, procedures and forms • Security Manager - Create complete facility security procedures and disaster recovery plans Customize to any Business When researching effective solutions, the content should be well-researched and follow industry-standard formats. Moreover, the applications such as MS Word-based standard operating procedures documents should be easy to edit and simple to customize for any business or organization. Utilize Essential Procedures Management should have a solution to implement their entire policy system with essential procedures in one concise, consistent format. And they can do it effectively and efficiently because pre-written documents: • Saves research time • Improves procedure writing • Speeds policy development • Eases document editing • Enhances policy knowledge • Simplifies implementation The Right Documents Business owners and executives should select a pre-written policies and procedures package specifically created for a particular management scope. And choose the one that identifies their role and needs. About the author: Chris Anderson has over 18 years of sales, marketing and business management experience working with business process design, software and systems engineering. He is also co-author of policies and procedures manual products, producing the layout, process design and implementation to increase performance. He is currently the Managing Director of Bizmanualz, Inc. Visit: http://www.bizmanualz.com?src=ART66 Circulated by Article Emporium

Pay Your Children to Work for You with the Blessing of the IRS

by: Chris Bird

Save on Taxes by Hiring Your Children You've heard that you can't have your cake and eat it, too. But hiring your own family is one case when you can. Pay your minor or adult children to work for your business, then write it off as an expense. Many people are confused about whether it's legal to hire their children and grandchildren. Follow my advice to satisfy both the IRS and employment laws - while saving on your own taxes. Assuming it's a true payment for services performed (and the paperwork is handled properly) it's totally legal and acceptable to pay family members. Minor Children Save the Most Taxes Child labor restrictions don't apply to a parent (unless it's in manufacturing, mining, or any hazardous occupation defined by the Department of Labor) - even under 16. I hired my own daughters from the ages of 7 and 9 without a hitch. You need not pay withholding income taxes, payroll taxes (including Social Security) and Workmen's Compensation (in most states) until the child turns 18. Just remember to complete quarterly payroll tax returns, as you must for any employee. Forget about paying federal unemployment taxes until the child turns 21. However, if your business is an S or C Corporation, you must pay Social Security and Medicare taxes regardless of their ages. To Survive IRS Scrutiny 1. The children actually have to work 2. Pay them consistently 3. Pay them according to what you'd pay someone else 4. Keep detailed records 5. Issue a W-2 at year end and file a tax return for the child, even if no tax is owed Example: Wages paid to 13 year old child $6200 Less: Standard deduction for 2005 (5000) Taxable income $1200 Tax Due (10% x $1200) $ 120 While for the parents: Wages paid to the child $6200 Tax Savings (40% x $6200) $2480 For a net savings to the family of $2360 The income tax standard deduction is $5000 for every person in the country, including each of your minor children. So unless you pay them more than that, they won't have any tax obligation at all. And since they really earned it, the "kiddie tax rules" do not apply. When hiring adult family members you can justify larger salaries. And they can participate in benefits like qualified retirement benefit programs and fringe benefits (like medical insurance and childcare). Working for You Teaches Children about Managing Money and Saving The income has to be earned by the child, so the amount needs to reflect the value of what's done. And the money does belong to them, even if it's being saved for college. Many of the benefits of involving your children in your operation aren't tax-related at all. They're gaining practical experience, learning the value of work, and maybe how to carry on the family business down the road. If you're wondering whether to trust my advice, I've sat on both sides of the desk. I worked for the IRS, and since leaving there have conducted almost a thousand seminars on financial planning and taxes. I speak to real estate and banking professionals all over the country, and have found that everyone wants to learn smart strategies that bring reliable financial returns - without getting them into tax trouble. In my opinion, hiring your family is one of them. Don't hesitate to put the troops to work. When you hire your children you're teaching them skills they'll be able to use for the long haul. They're learning the value of a dollar - and how hard you have to work to earn them. And bottom line, it makes good financial sense as well. © 2005, Chris Bird About the author: Chris Bird Conducts 150 seminars a year for Real Estate and Financial professionals Wealth building, financial planning, residential rentals, tax strategies, accounting Certified Financial Planner (CFP) IRS Enrolled Agent Chris@ChrisBirdSeminars.com Circulated by Article Emporium

Outsourcing Is Picking Pace

by: Mansi gupta

BPO or Business Process Outsourcing is a very common and mushrooming phenomenon these days. BPO can be defined as the accomplishment of a business task from some outside agency. For instance a company can ask or hire an external agency to maintain its old records and accounts. The phenomenon of outsourcing was not so well established before a decade. Initially some of the relatively small and low grade jobs like old storage record of the company were outsourced in United States. Gradually with the budding success and confidence, valuable and crucial jobs like payroll accounting, human resource tasks – recruitment, training and development of employees joined the fray. Outsourced jobs most often involve the ones, which need to be performed on a regular or daily basis. The companies now no more perform such tasks which they used to perform themselves. Like hiring of a consultant company for training of new employees, getting advertisements made from an advertising firm across the seas. Outsourcing has many benefits. It allows a company to identify and focus on its core competencies. The company can outsource every other task that can be taken up by outside agencies and that requires significant time and energy (like training of new employees, making recruitments, marketing and manufacturing of products etc.). This lends the opportunity to the company to fully concentrate on its core competency. Along with this the low cost factor is equally important. The companies in US and Europe by outsourcing their jobs in countries like India, Japan and China accrue huge profits in terms of cost saving. Such savings in cost are in the form of cheap and skilled labor, manufacturing or production of the goods etc. This in turn is a result of variation in salary structure across the globe. Outsourcing proves quite worthwhile and beneficial during the period of slump in a country’s economy. When profits are under threat and it becomes imperative to reduce the costs, outsourcing is perhaps the best way to mutilate the costs without compromising on the good quality of work. Besides this BPO also liberates big companies of labor oriented problems or issues, thereby enabling them to be more focused and streamlined to enhance their work. There are various sectors in which outsourcing is holding grips. These are Financial sector, IT, Telecommunications, Advertising, Courier Services and Customer Support Services. A case in point can be Spectra mind that undertakes many of the crucial tasks (insurance, telecom etc.) for clients in US and Europe. But the outsourcing process is not acceptable to everyone due to its complementary disadvantages. People often believe that outsourcing leads to drainage of jobs. It is believed to create an acute unemployment for the qualified professionals of that very nation. Moreover there the threat of delayed work failing to meet the deadlines and targets and most importantly that of leakage of confidential information is always lurking in overseas outsourcing. The companies also do not get to confront or communicate directly with their key clients which makes them all the more dependent on their offshore agencies. Like every other phenomenon, outsourcing in business too has tail of ethics attached to it. However, the truth is that it is one of the best ways for a company to expand, enhance its growth and minimize the costs. But a company should not be just enchanted by the merits of outsourcing but should also be considerate of its pitfalls. About the author: Mansi gupta writes about Outsourcing topics. Learn more athttp://www.outsourcingconcerns.com. Circulated by Article Emporium

Outside The Box

by: Phillip A. Ross

Outside The Box Thinking "outside the box" or as it is sometimes called, "coloring outside the lines" is a popular idea in the business world today. People and organizations are told to think outside the box or color outside the lines as a way to stimulate creativity when they need to solve problems like streamlining production, establishing a new product, or developing a new process. And it's true that creativity and innovation often arise from unexpected and unconventional thinking. But there is a serious problem with trying to apply such thinking too broadly. For instance, creativity is valued in art and advertising, but not in banking and accounting. An accounting firm recently ran an ad suggesting that it could think "outside the box." Do you really want your business to be associated with creative accounting? Aren't accountants supposed to put the numbers in the right box? Wasn't creative accounting a serious problem for Enron? In reality, clear thinking and the creativity that it produces are rarely a matter of thinking outside the box. And coloring outside the lines is for the most part just sloppy workmanship. The art of clear thinking is a matter of putting thoughts in to the right boxes or categories. Clear thinking is a matter of mental organization. Conversely, sloppy thinking involves the confusion of categories, of putting ideas into the wrong boxes or not putting them in order at all. Is a child who will not straighten his or her room creative or just sloppy? There is a significant difference. While creativity sometimes looks sloppy to an outside observer, it does not issue from sloppiness. Picasso was a creative artist. But his creativity was not a matter of the art he produced. In reality his abstract work is technically sloppy. It looks like the work of a child. Picasso could sell his abstract art only because he had previously established himself as an artist who could color inside the lines very well. Had he not first proven his artistic talent in the traditional way, his abstract art would have been worth much less. He used his reputation as a traditional artist to establish a new direction in art. He didn't so much color outside the box, as he expanded the boundaries and definition of the box. But the point is that his abstract creations were valuable only because of his proven abilities in the traditional arts. Contrast my own efforts to establish myself as an abstract artist. My art has gone unnoticed because I have not been able to prove myself as a traditional artist. Not that I actually tried to do so, but I am using myself as an example to make the point. The creativity of a novel idea requires the discipline of order and structure to be valuable. Picasso's art is valuable because he was an accomplished painter who intentionally colored outside the lines. My art is not valuable because I am not an accomplished painter and I accidentally color outside the lines. While the two products may look similar, the difference is critical. Creativity is more than breaking the rules. Similarly, Joseph Heller was able to break the rules of English grammar in his book, Something Happened (Scribner, 1974), only because he was intimately familiar with them. Having taught English at the University of South Carolina, he was a master of grammar. And only out of his expertise could he creatively exploit, expand and redefine the boundaries of grammar. And so it is with regard to thinking outside the box. Thinking outside the box apart from being able to think inside the box is worthless. Such thought is just plain sloppy. Thus, the suggestion that creativity lies in the ability to think outside the box is mostly nonsense. Creativity issues from talent, ability and discipline. Talent must be forged and shaped on the anvil of discipline in order to develop ability. Great ability is always the result of study, discipline and practice. Creativity is more a matter of seeing that the boxes themselves are inadequate and suggesting a better arrangement or a better definition. Creativity doesn't simply discard the boxes, it redefines and/or rearranges them after becoming intimately familiar with them. Real creativity is always the fruit of discipline and order. Creativity, in order to be genuinely creative and not simply sloppy disorganization, must emerge out of discipline and order as an intentional effort. While a creative idea often comes unbidden out of unexpected places, it requires discipline, study and order to make something of it. Apart from discipline and order, what passes for creativity is nonsense, and to suggest otherwise actually undermines and/or weakens the creative process. What does this mean for our industry? Distributors and suppliers should apply themselves to mastering the basics before attempting to break the rules in the name of creativity. Don't start outside the box. First, establish your ability to think within the box. Master the rules before you suggest breaking them. For example, before a distributorship presents a wild, innovative concept to a client for a campaign, it should first establish its expertise with campaigns and/or ideas that have a track record of yielding good ROI. Designers, artists, and copy writers should establish their mastery of basics before experimenting outside the box. For the most part the important stuff is inside the box. ©2002 Phillip A. Ross

Non-Profit Organizations - What Are They?

by: John Day

Definition of Fund; Assets; and Fund Balance  According to the “Financial and Accounting Guide for Not-For-Profit Organizations” written by CPAs Gross, Larkin, Bruttomesso, and McNalley, (fifth edition, pg 25) the definition of a these three terms is as follows: - A fund is any part of an organization for which separate account records are kept. - Assets are valuable things owned or controlled by the organization. Types of assets include cash, investments, property, and amounts owed to the organization. - Fund balance is the mathematical number obtained by subtracting total liabilities from total assets; it is a numerical representation of the net worth of the organization, but has no other significance. Fund balances do not exist except on paper; unlike assets, they have no intrinsic value and cannot be spent. Both assets and fund balances (as well as liabilities, revenues, and expenses) are part of the accounting records of a fund. What are non-profit organizations?  A few years ago, a dentist client of mine, who did a lot of work for low-income patients under the California medical assistance program called “MediCal”, asked me a bizarre question. He wanted to know if he could be considered a “non-profit organization” since he did so much MediCal work. At first, I thought he was joking, but he was serious. I told him that just because he charged less for his services did not qualify him to become exempt from paying taxes. In fact, he made a very nice profit. However, this is a good example of how non-profit organizations (NPO’s) are misunderstood by a large segment of the general public. Most countries around the world have NPO’s, but outside the U.S. they are called non-governmental organizations (NGOs) or civil society organizations. These organizations are exempt from paying taxes because they provide some sort of public benefit. They are said to enhance the fabric of society. They differ from a business organization in that there are no owners. A Board of Directors oversees operations of the organization. An Executive Director, who reports to the Board, functions like a CEO of a business. Usually there is a lengthy application process to establish the mission or purpose of the organization before exempt status is granted. According to Independent Sector, an organization that serves as an information resource for non-profit boards, there are 1.5 million non-profits that, when combined, have general annual revenues totaling more than $670 billion dollars. They report that six percent of all organizations in the U.S. are non-profits and one in twelve Americans work for a non-profit. That’s big business and has caused profit-making businesses to become alarmed that some of these NPOs are competing unfairly. Think about a private hospital as compared to a non-profit hospital. The profits of the private hospital are taxed, but the NPO hospital can apply all their profits to higher salaries, more equipment, etc. Hence, there is high scrutiny of NPOs by the Internal Revenue Service, state Attorney General offices, private watchdog organizations, and the press. There are all types of non-profit organizations. Public charities are exempt under the Internal Revenue Service code 501(c)(3). These organizations, such as hospitals, museums, orchestras, private schools, churches, scientific research organizations, soup kitchens, etc., obviously do much more than provide free care and services to the needy. To qualify for exempt status, these organizations must show broad public support, rather than funding from an individual source. In addition, there are private foundations, colleges, universities, social welfare organizations, professional and trade organizations, and many more. Governmental organizations such as communities and agencies are also non-profit organizations, however, their accounting and record keeping is handled quite differently from 501(c)(3) organizations. How are non-profit books organized? Briefly, the books of an NPO are organized in the same way as a profit-making business except for a few differences. It’s okay for a non-profit to make a profit because there may be many uses the board has planned for the extra money. But, NPOs traditionally refer to profit as “Excess Revenues over Expenses” to avoid being mischaracterized as a profit-making organization. A net loss is called “Excess Expenses over Revenues”. Recall the fundamental equation that makes double-entry accounting work: ASSETS = LIABILITIES EQUITY Instead of the term EQUITY, a non-profit will substitute the words FUND BALANCE or more recently NET ASSETS. The concept is still the same. After subtracting liabilities from assets the difference is what is owned by the organization. Where NPOs differ in their financial statement presentation from profit-making businesses is what is called Fund Accounting. Obviously, the presentation varies depending on the purpose and size of the organization. For instance, a Little League baseball organization may only have one fund for which they have to account. They also may not have any restrictions placed on the usage of contributions they receive. Everything is straightforward. Or, a scientific research organization may be working on various projects at the same time with funding sources made up of private and governmental grants or contracts, private donations, sales of research documents, some of it restricted to specific expenditures and the rest unrestricted. The accounting challenge is to report the revenue and expenses accurately for each fund or project and be able to combine all the funds into one cohesive financial statement. The problem in the past for the contributors was that they could not easily tell from the financial documents what funds were restricted and unrestricted and whether their contributions were being spent properly. The Financial Accounting Standards Board (FASB) decided that all external accounting should be done using the “Net Assets” approach as opposed to the “Fund Balance” approach. Essentially, the net assets approach requires that the equity of the organization be presented with three classes of assets, i.e., Restricted Assets; Temporarily Restricted Assets; Unrestricted Assets. You can still use Fund Accounting for internal bookkeeping purposes, but for external reporting purposes you are required to disclose your restricted and unrestricted funds. If you have no restricted funds, then it is not much of a challenge. One of the key factors in setting up non-profit books is a well thought out Chart of Accounts. In other words, this is choosing which general ledger accounts are the most appropriate for recording revenue and expenses, etc., and organizing them in such a way as to provide meaning. Some U.S. organizations simply follow the same format found on the 990 IRS form for non-profits. They do this so that their financial statements are in conformity with the way that return is organized. This makes it easy to transfer information from their financial statement to the 990 form. Nevertheless, the main thing is to design your accounts so that they tell you exactly where your revenue came from and what expenses are related to that revenue. I have worked with NPOs that have not done a very good job of this in the beginning, and I can testify that it is no fun trying to straighten the accounts out later. It may be well worth the money to hire a competent accountant to guide you through the set up phase. Better yet, let your accountant review your books a couple of times a year just to make sure you are on track and save yourself some year-end grief. About the author: John W. Day, MBA is the author of two courses in accounting basics for non-accountants. Visit his website at http://www.reallifeaccounting.comto download for FREE his 3 e-books pertaining to small business accounting and his monthly newsletter on accounting issues. Ask John questions directly on his Accounting for Non-Accountants blog. Circulated by Article Emporium

Networking

by: Brian K Grinonneau

Put join a group on your to do list with a big underline, star and happy face. You’ll be glad you did for more reasons than you can count. And the advice is coming from this confirmed non-networker who, in 20 years of business, considered networking a colossal waste of time. The old dog is here with a new trick. Business networking groups bring together people who, most times, are self- employed, successful entrepreneurs or corporate folk paid truly paid for their efforts. (see commissioned salesperson) The types of businesses these networkers represent vary, but the commonality is they meet to share, learn and become better at their craft. The networking meetings are held at times that are fairly convenient even for the most type A business owner. Early morning, mid-day or evening are the popular meeting times and all involve food of some type, contests, and sometimes cocktails. There is a networking etiquette that is a mix of business sense and remembering what your mother taught you. Be nice. Smile. Be genuine. Don’t show up looking to dazzle everyone you meet with your slick sales pitch. To be sure, meet a lot of people, hand out a lot of cards, but give before taking. Listen more than you talk. Question more than you answer. Care about someone else and their plight. What’s in it for me? That’s the common question in many business conversations. Here’s what you get by joining a networking group: New contacts--what business can’t use more contacts? The fellow businesspersons you meet might be able to use your service. They also know lots of people and aren’t shy about recommending you. You look like an expert to your customers. As you meet new professionals, you won’t hesitate to recommend them to your customers to handle tasks you don’t. Your stock will rise appreciably with your customer for being such a willing problem solver. Education. The meetings always revolve around a guest speaker who will bring to you valuable information about topics ranging from accounting to law, sales to hiring an employee and much more. Friendship. Everyone can use more friends. Imagine playing golf with those that share your passion. Advice. Ask around and fellow networkers will be glad to dispense it for free and many have already faced the same situation you now have. Find a local networking group and get involved. It will be one of the best decisions you ever made. Go ahead. Write it down. Your to do list is waiting. About the author: Brian Grinonneau is the general manager of McMann and Tate Advertising, an agency working exclusively with small business clients to help them cut through the clutter and stand out from the crowd. Circulated by Article Emporium

MORAL ARMOR'S Economic Warning for Americans

by: Ronald E Springer

Copyright 2005 Ronald E Springer For years we've suffered under recession, prompting us to ask, When will it end? My answer is, “It’s only the beginning.” Historically, recessions are the result of high interest rates, pushed up as the result of loose money policies. Recovery comes when citizens begin to spend more wisely, save money and pay off their debts, but not this time. Never before have credit policies been so loose for so long, and there has been no decrease in consumer debt. It’s still on the rise, but Americans are NOT fundamentally to blame; immoral monetary policy is. Banks used to consider a safe loan applicant to have a 36% or less Debt to Income Ratio (debt divided by gross income). This percentage is a time-proven figure indicating the financial health of an individual. Now, during the worst economy in twenty years and with no signs of recovery, our banks gladly loan to applicants with a 56% Debt to Income. What has changed? Are banks suddenly more generous? I don’t think so. One good question to ask is, Why are banks willing to accept the additional risk? But the real question to ask is, Where is this money coming from? Not one in a thousand Americans knows the true nature of our banking system, so they have no idea that what happened in 1929 is about to happen again. Nor do they know that it was done deliberately then, and is being done deliberately now.  We have in this country one of the most corrupt institutions known to Man, and I refer to the Federal Reserve. Since it’s inception in 1913, every dollar created has interest being paid on it as if it were borrowed. This debt cannot be extinguished without destroying the currency itself, and has spawned a nightmare of debt that presently amounts to over $360 Billion in interest paid per year, accounting for half the personal income tax of the nation. Due to this, America is forced to create $7 Billion daily to cover the $1 Billion it pays in interest daily due to the Federal Reserve System. This is where the public comes in. Federal Reserve bankers have to find a way to spend $6 Billion every day while masking the inflation it causes. Throughout the nineties it was done through real estate and the stock market. Now it is almost exclusively being put into real estate. How on Earth could so many mortgage companies be offering interest only, no money down, multi-hundred thousand or million dollar loans with high applicant debt ratios? Here is a hypothetical example of what’s going to happen: Your mortgage banker tells you that with a 56% debt ratio, you can afford a $300,000 home, no money down. You secure the loan at 4%, costing $1432 per month. A few years later, you’re thrown out of work for three months. Back payments amount to $4296 plus late fees, legal fees, etc., and another $5k on cars, credit cards and everything else. Unable to catch up, you’ll try to refinance, but interest rates have moved up to 7%. A $310,000 loan now costs $2062 per month—more than you can afford, but banks will have tightened lending policies back to 36% and you no longer qualify for the home you own anyway. Accounting for all other debt, you now qualify for a shocking $360 per month. You are trapped, and the new bankruptcy laws they pushed for will never let you walk away. You owned this home in a perfect numbers scenario, but any complications—unemployment, salary reduction, interest rate increase, debt ratio change, bruised credit rating, depressed home values--and you’re cooked. One mishap and every financial measure works against you. Your financial angel has suddenly become your greatest enemy. Welcome to the Federal Reserve System and their freshly engineered worldwide depression. If you were to approach the housing market fresh, you would find that you only qualify for a $55k house now, along with the market of purchasers you were hoping to unload your balloon-house on. The bank forecloses, auctions it off and you’re personally responsible for the difference, which could be massive. Bankruptcy is right around the corner, and deplorably, you are the only one who will be held accountable. You will then be a debt slave as the Federal Reserve intends, and game over. My advice is to get as financially stable as you can. Mathematically, our situation is much worse than that of the Great Depression. No matter how generous these bankers appear, pare down monthly outlays to 36% D/I or less. Set aside three to six months of mortgage payments in case you become unemployed. Make sure you can ride out the storm. We are coming to a point in American society to where it’s either them or us, and mass awareness is the key to our survival. Most believe the Federal Reserve is a part of the government, but it’s just a name. The Fed is a private corporation set up for private gain, with a dark history of stock market crashes, financial panics, political manipulation and ultimately, mass poverty and hunger riots. Our struggle is not new: currency control has switched from public to private hands EIGHT times since our country’s inception, and needs to be reclaimed by the people, one last time. Don’t think you can play helpless and expect our political leaders to protect you from financial calamity; they never have. You must become Morally Armed on your own. Don’t be coaxed into believing the system is optimised for the good of all. The Federal Reserve System is not an equitable institution, and it was never intended to be. They believe if they have us strung out on debt, we are no threat to them. Let us prove otherwise. Currency reform is the most important issue facing Americans today. How it plays out will determine whether you and your children eat or not, whether you have a place to live or even a future to look forward to. The major media will ridicule anyone speaking against the Fed, so to validate history’s greatest moral dilemma for yourself, just google “Jackson bank veto.”  America must abolish the Federal Reserve System to regain control over the economy and our government. For a concise history of world monetary policy and how it shapes world events, see Moral Armor. Then share this knowledge with your friends. Email this article to everyone in your address book and stay tuned for further developments. We’ll change the system together and bring a brighter dawn to Mankind. About the author: Ronald E. Springer is the Author/Philosopher of Moral Armor, the world's first fully-integrated moral philosophy based on the nature of Man. Featured on The Mitch Albom Show, NBC and FOX News radio affiliates, Mr. Springer is available for interviews, speaking engagements, philosophy workshops and seminars. Please contact RonaldESpringer@MoralArmor.com or visit www.MoralArmor.comfor details.  Circulated by Article Emporium

Material Values in Business Management

by: Stephan Szugat

Article Title: I  Author: Stephan Szugat  Word Count: 915  Material Values in Business Management  Maybe you have already heard that in some ways immaterial values are important for business management. But you might not found how to bring them into your management processes or into your reporting packages. However, first of all we should be clear, what immaterial values are? Well, this includes the balance sheet information about intangible assets, but is going far behind it.  As we all know, decisions are mostly based on feelings or emotions, than on logical judgement. A feeling is an energy. Energy is not material, it is immaterial. The overall emotions or motivation of employees in a business is a immaterial value, it could have positive and negative impact on the business development. Does sound very esoterically for you? Might be, but today we know that our emotions drive a lot of our life.  Not only the feelings of the employees have an impact on the business development, also the feelings of potential customers have it. These customer feelings could be measured as customer satisfaction, as how customers see the company or it’s products and services and so on. There is more energy, which is immaterial, included in our business life as we are aware of.  Until today we might know about these energies or have read that businesses have to be more aware of them. But to find Solutions which are able to measure these energies are not very common and hard to find. Business Management still uses hard figures such as ratios based on financial values and just forgets that there has been more than only the numbers from the accounting and the money in the pocket.  If you only look to the accounting figures of a business, you only look to this company as if you were looking at an iceberg. You only see a fraction of the iceberg, only what is above the surface. Everything below the surface is out of your view. While the iceberg is melting away, it still brings up new parts of it self. But you only see this new parts, when the iceberg is melting. It’s just the same with the accounting figures as soon as you see them they are gone. That means they are old, it’s nice to knew them, but they relate to business already accomplished. The accounting figures are just like to iceberg when it comes above the surface while it is melting away. Now, wouldn’t it be great to see the whole iceberg, even if a big part is below the surface? Yes, it would be great. The immaterial values of your business are just below surface. If you bring them up, you could see the whole picture of your business.  Running a business only focusing on profit could lead to running into a collapse. It might take time, but soon customers and employees will find out that just the profit counts to a specific company. Well, it’s correct, no business could survive without profit, but first of all every business has to make profit on immaterial items, such as image, motivation of employees and customers faith.  One day from these immaterial profits the financial profit arises. That’s the theory. Probably you already read about this, but have you found a way to measure immaterial values of your business? It’s not that difficult, but it needs some thoughts. First of all it is important to make a list of immaterial values which have the most impact on the business development. When this has been finished, methods to measure and valuate the immaterial values have to be found.  And at last, the values for all the selected immaterial items have to be analysed regularly. Setting up such a Reporting System for immaterial values could be a long lasting task. You might try to do it with a spreadsheet program or with a database, but either way will take it’s time. Using ready made Standard Software might be another option, but there are not much choices. In case you use the Balance Scorecard, you might think having all the data entioned above and you might think having a good solution for analyzing.  The Balance Scorecard has it’s advantages, but for a short, fast and regular analysis of immaterial values it is far to complex and much to slow. There is just the need to measure, store and analyse some data. About 30 items will be enough to have an overview of material values and some material values as well. Most of the necessary data are usually already stored in every business. They only need to be concentrated into one table and have to be analysed.  Are immaterial values important for every business? Yes. This includes big businesses as well as the one-man-business, retail stores, mechanics, freelancer and so on. You may find more information on immaterial values in business management, when searching for Early-Warning-System, Early-Recognition-Systems and something similar. You are able to find one or the other immaterial value included in Management Methods, Ratio Systems and Financial Analysis. But still, most Reports and Measurement System are based on financial data.  A Solution which every business, no matter of size, could use, is the abenetis ERS (Early-Recognition-System). It is called Early-Recognition-System, because with the used immaterial values every business could be aware of tendencies in it’s business development soon. At the moment the abenetis ERS is available only as Online-Service, but could soon be delivered as Intranet-Version, too. More details are available at our ERS-Subscription Page.  About the author: Stephan Szugat is founder of abenetis a web-based service about Business Management Solutions focusing on the core needs of business management. This includes operational and strategic analysis especially Early-Recognition-Systems, Knowledge-Management and other Services for small and mid-sized businesses. He has approx. 15 years experience in the Finance and Accounting Area from companies of different size and from various industries. http://www.abenetis.com  Circulated by Article Emporium

Managing Your Home Based Online Business

by: Roy Thomsitt

In the first part of this series of articles, on managing your online business at home, I wrote about the many management responsibilities and functions you have rolled into one if you have your own sole proprietor business, with no staff. Your management task is perhaps the most difficult of all. You have to manage yourself, in all those different areas of your business such as finance, marketing, purchasing and computing.  I believe that if you think of your new home business as having different areas of management for you to concentrate on, you are more likely to succeed long term. If you can adopt some of the techniques of good management, you will end up with a more sound business that will stand the test of time. You will be a better decision maker, and it is decisions that dictate the progress or downfall of any business. Decision making needs to be unemotional and as scientific as possible, but as much as anything needs to be based on common sense. Good management is often a matter of common sense, and that is why I believe you, whatever your background, can run a successful business limited only by your ambitions.  The other virtue you will need in abundance is patience, and this an area where you definitely need to manage yourself. Impatience brings emotion into your decision making. It also brings self criticism, or criticism of others, when none is either deserved or necessary. Patience, realism and common sense combined will contribute greatly to making you a good business manager. With those three attributes, you will be well placed to learn the skills of management in the context of your own small business. You will be able to learn how the different functions of a business relate to each other and interact.  That is not easy, but over time, if you apply yourself, it will all fall into place. This is where patience is vital. Your age or background do not necessarily matter. I know that in my late 20’s I did not really understand business and how it all fitted together. At 30, I knew I needed some sort of professional qualification, and I decided on management accountancy. The syllabus was tough, with 18 exams over 2 and a half to 5 years. What surprised me was the variety of subjects to cover. There were exams in company law, business law, economics, corporate planning, marketing, production, decision making, cost accounting, management accounting, mathematics and statistics. Each subject was very different. Then, at the end, I suddenly realized that all of them knitted together. The ones I hated (law) and loved (marketing) all had a place in the scheme of things.  You, of course, have no need to study or be an expert in all of those things. But it does help to at least be aware that some of them are, in their own way, critical to your success. If you are taking a long term view of things, which you should be if you are serious about having your own home business, you have plenty of time to learn about those subjects that are most critical for your business:  Finance  Whatever your business, this is a very critical function for you to understand and manage, so when it comes to learning all you can, financial management is a priority. Much of this is again common sense, and realism, and there are many tools around to help you keep good financial records. But as I mentioned before, it is decisions that dictate the progress or downfall of any business. All decisions you make will have a financial impact on your business. However, good financial records alone will not bring the reward of better decision making. If you want to maximize the profits of your home business, you may find it helps to have other, non-financial records to aid your decisions. I will discuss this more in part 3 of this series of articles.  Marketing  Marketing is what I love most about business, and it is equally important to finance in all free enterprises. With an online business, the marketing side is an ever moving area of expertise. Offline, marketing has long since stabilised. Online, it has not stabilised at all; it is still developing and evolving. You need to be aware of what’s happening in the world of internet marketing, what has happened, and what is likely to happen. Always remember, though, there will always be a financial impact of your marketing decisions. You are obviously prepared to take risks, as you have started or are starting an online business at home. As the manager of your business you will need to balance the financial and marketing conflicts as they arise. You have to strike the right balance. If the finance director in you is too risk averse, you may stifle the growth of your business. If the marketing director in you is too cavalier, and unrealistic about sales prospects, you may ruin your business in one or two rash decisions. More on this in part 4.  Computing  If you are working online full time, or even part time, you will always need to be looking out for developments in the arenas of software and the internet itself, and maybe at times hardware. You may come across software that either improves your efficiency, makes life much easier or takes you into a new and better way of working. This is another area where knowledge is power. You need to be competitive, and sometimes you will come across new software that will make you more competitive. Try to keep abreast of things in the software marketplace, as it affects your business.  Time Management  While not a function like finance or marketing, when you work at home alone you will find that time management becomes key to your success and enjoyment of working from home. It is a subject you should always be aware of and make conscious decisions about. I will write more on this topic in part 5.  The above are just the key areas where you need to view your business from a management viewpoint, and the list of course is not exhaustive. However, pay attention to these from a manager’s perspective, and you should benefit in the long run. You will take the leap from being “employee” to “boss”, even if you are the only one you can be “boss” to.  About the author: Roy Thomsitt is the owner and part author the home business websites http://www.change-direction.comand http://www.home-working-start-up.com Circulated by Article Emporium