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In
Our Corner
"A
bank is a place that will lend you money if you can prove that you
don't need it." ~Bob Hope
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Financial Decisions for Your Small Business
Stand Up to an Economic
Downturn With Good Financial Practices
There are a multitude of wonderful opportunities
during an economic downturn. A quote from Alexander Graham Bell
says it so well, "When one door closes, another opens; but we
often look so long and so regretfully upon the closed door that we do
not see the one which has opened for us."
A downturn doesn't have to spell disaster for your small
business. Good financial management practices always help you
weather the worst of economic times.
For many small businesses with limited resources, this
and other factors often combine to pressure bottom lines past the
breaking point, creating a domino effect of other dilemmas such as a
credit crunch or layoffs.
Begin with
the basics. Even when times are terrific, no small
business can survive without good recordkeeping, budgeting, cash flow
monitoring, and credit management.
We can help you capitalize on new windows of
opportunity; where there's "a pane", we can help fill
it with a host of entrepreneurial ideas.
The entrepreneur is challenging new ways to
create business 
and thinking outside the box.
The inevitable 'good times' will return.
Consult your
bank. Lenders can tap their vast experience in
economic cycles to advise you on issues specific to your business and
industry. Depending on your projected long-term expenses, consider
arranging a line of credit in case a cash flow gap occurs.
Be on good
terms with your creditors. Falling behind on payments
is never the answer, even if it's "just this once."
Creditors will be more amenable to renegotiating terms to small
businesses they consider to be conscientious and reliable.
Watch your
receivables. By the same token, you need to stay on
top of any outstanding debts to your company, particularly problem
accounts. Be firm, but also willing to negotiate where
appropriate.
 Scrutinize your spending. Rather than arbitrarily slashing your budget, strive
to spend only on those things that have a justifiable positive effect
on your business. That will make it easier to redirect money to areas
that enhance business performance.
Step up your
review of financials. Assessing your reports weekly
or biweekly rather than monthly will put you in a better position to
make informed decisions. Similarly, a monthly or quarterly review
your business plan enables you to adjust your strategy and direction
to changing market conditions.
Keep
marketing in the mix. Look for cost-effective ways to
keep your company visible to current customers and potential new
markets. They may be ready to restart their spending long before the
headlines proclaim an end to the economic crisis.
Your books measure these aforementioned areas to
reveal and determine your financial success. We offer a variety
of services to keep your money matters in shape!
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SPRING HAS SPRUNG
~ Fun in the Sun and then Some
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Time to unwind and enjoy the festivities
happening here in San Jose and surrounding
communities during the month of May.
Kaleid Gallery - San Jose
Something different for your every third Tuesday of
every month. Quirky, interesting people get together. 12pm-7pm. For
more info:
Koret Museum Day @ The Tech
Museum - San Jose
Mother's Day,
Sunday, May 10
One day only! Visitors to The Tech can enjoy a FREE IMAX movie. No
online tickets available.
San Jose Center for the
Performing Arts
May 7 - May 10
San Jose Museum of Art
The Prints of Andy Warhol
Through May 31
San Jose McEnery Convention
Center
USA Taekwondo: 2009 National Qualifier
Silicon Valley Jewish Film
Festival
Palo Alto
Mini-Israel Festival
May 16th, 17th
The Alameda Point Antiques and
Collectibles Faire
First Sunday of every month
Urban Village Farmers Market -
Campbell
Downtown Campbell
Every Sunday (year round)
Women Teaching Women
San Tomas
Community Center,
Second Thursday of every month
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Greetings!
We're into the fifth month of 2009! Time flies
when you're having fun! We all experience 24 hours in
a day; however, it's what we do with our time that
counts.
Are you taking time to enjoy your life,
perhaps planning a vacation, a family reunion
or finally doing a remodel that you've wanted to get done?
If you are in a position that has you wondering if you
can take the time to handle your business affairs, visit
relatives, afford that trip or add that new room, you can stop the
worry. We're here to help you get your financials in order so you can
do and have the things in life that are important to you.
We bring innovative ways of making things
run smoother with your business. We can show you where you stand
financially; we can show you how to do your own books or we'll
do the bookkeeping for you. Whatever you need, we'll guide you the
right way so you can make the best informed decisions.
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Insurance Coverage
Concerns
and Confusion
Like most of us, there is a growing concern about our
insurance coverage for health, life, home, automobiles and with
our business.
Business need for private health insurance is
growing. But shopping for insurance can be daunting. There are so
many options from which to choose - where do you start? And, what do
you need to know to get the most coverage for the best price?
Insurance can be tricky to figure out. You want to
avoid being underinsured or improperly insured, but you certainly
don't want to pay for insurance that you don't need.
How much is
enough? The answer depends on your unique needs and
what type of insurance you are talking about, but here are some
general guidelines:
Life Insurance - To pay expenses and ensure that your family is
financially secure, multiply your annual salary by the number of
years remaining until you plan to retire. For example, if you
earn $75,000 per year and expect to work for another 10 years, you
would need to have $750,000 in life insurance coverage. If your
mortgage is paid and the children have completed their educations,
you may not need as much.
Homeowner's
Insurance - To protect your home and its contents
against theft or damage, you should have enough insurance to cover
the cost of rebuilding your home at current prices, not just what you
paid for the home when you purchased it. It also may be tax
deductible if set-up correctly.
Auto
Insurance - Most states require that you carry
at least liability insurance, for your own peace of mind, you
should have more than that. Like homeowner's liability insurance,
your coverage should equal your assets.
Business Owner Coverage - Business owner insurance provides damage protection
from fire and other mishaps. Owner coverage also offers a degree of
liability protection.
Errors and omissions insurance - This coverage is particularly important to
service-based businesses, offering protection should you make a
mistake or neglect to do something that causes a customer or client
some harm.
Liability insurance - In our litigation-looped society, this may be
as important a form of coverage as you can get. This covers damage to
property or injuries suffered by someone else for which you are held
responsible. This can take in a range of disasters, from the postal
worker who sues you for a dog bite incurred during a delivery to your
home business, to the clumsy customer who scorches himself after you
make your complimentary coffee just too darn hot.
excerpts taken from www.finmtg.com and MicroSoft Small Business
Center
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GOT RESOURCES?
We have a wealth of resources that have provided
quality service from the people we trust. If you are in need of an
insurance professional, please contact our office via email or give
us a call. We have a solution to get you covered.
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UPCOMING
IMPORTANT DUE DATE
June 15, 2009
2nd quarter 1040es estimated
tax payments due for 2009 tax year.
2nd quarter 540es estimated 30% tax payment due for
2009 tax year.
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It's never too late to do the right thing for yourself
and your business. Avoidance and neglect never bring
about a positive result. It is essential to any successful
business to have your bookkeeping done correctly and
consistently.
We're here to make those necessary changes for
you and to lift the "weight of the world" from your
shoulders so you can continue doing your business with a
sense of relief.
All you need to do is pick up the phone. We'll help
you get your books in order so you can get going and move your
business forward.
Tammy Foley
Bookkeeping Services & We Train U-2
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