How to choose an Accountant!
1.Qualifications
When selecting or evaluating an accounting firm, one factor you need
to consider is whether or not the firm is a member of a recognised
professional accounting organisation. This is an important factor as the
title 'accountant' is not regulated in Australia. In other words, anyone
can call themselves an accountant even if they don't have the
educational and professional qualifications.
The three principal and most widely recognised professional accounting
organisations in Australia are:
→ The Institute of Chartered Accountants in Australia
→ CPA Australia
→ National Institute of Accountants

These three organisations adopt a strict code of conduct and require
their members to:
→ Hold an approved undergraduate university degree;
→ Have completed a comprehensive postgraduate professional study
program;
→ Complete a minimum of three years supervised experience;
→ Complete a public practice program and hold a current practising
certificate;
→ Undertake extensive continuing professional development each
year;
→ Have a minimum level of professional indemnity insurance
depending on the size of the firm and the type of work that it
undertakes;
→ Adhere to a strict code of ethical standards; and
→ Have their practice reviewed every five years or so to ensure that
standards of quality are maintained.
You should also ask to see that the firm has adequate professional
indemnity insurance.
2: Finding the right accountant for you and your business
The task of finding a suitable accountant for your business shouldn't
be taken lightly. As the accountant is usually involved in every aspect
of your business and to some extent your private life, you need to
Capalaba Ph 07 3823 2344
bartlettco.com.au
have an accountant who you can relate to both professionally and on a
personal level.
You also need to feel that the accountant will have a genuine concern
for your business and its success.
There's no reason why you should be loyal to your existing accountant,
particularly if the firm isn't performing. Changing accountants is a
relatively simple procedure and shouldn't cause any disruption to your
business.
3. How to choose?
The best thing to do is to start by selecting about three firms who you
feel might be suitable. You can do this by asking for a recommendation
from a business colleague, KBN is a good place to start.
You should then contact each firm to make an appointment and take
along a list of the questions that you want answered at the meeting.
Some of the important questions that should to be considered when
selecting or evaluating an accountant are:
→ Is the accountant a member of a recognised professional accounting
organisation?
→ Who will be handling your affairs and what are their professional
qualifications?
→ Does the accountant have knowledge of your particular industry?
→ Is the accountant able to provide business advice and assist in the
financial management of your business?
→ Does the firm provide advice on investments and assistance with
business and personal financing?
→ Will the accountant return your calls within a reasonable time?
→ How long will the accountant take to complete your work?
→ How accessible is the partner looking after you? A common
complaint from business owners is that over time, they have less
contact with the partner.
→ Do you feel that the accountant has an extensive knowledge of
income tax and GST law and keeps up-to-date?
→ Is the accountant familiar with the accounting software that your
business operates?
→ Does the accountant have a newsletter or some form of periodic
communication to inform you of issues that are of interest to your
business?
→ What is the accountant's hourly rate and the basis upon which fees
are charged? For example, will you be charged for every phone call
and also for travelling time?
It might be a good idea to get confirmation in writing on some of these
matters (particularly with respect to fees) to avoid any disputes in the
future.
Finally, take time to consider your decision and don't be afraid to
consult a friend or business colleague for advice

Business to Business Relationships
Business to business referrals are an important aspect to the growth of your business in any economic environment. We all know that people do business with people, rather than a brand or a business so it is essential that we develop sound and trusted business relationships with the person you intend to do business with.
These trusted business relationships are not developed overnight. Like any personal relationship, we need to invest time and effort in the business relationship.
Some key points to consider are:
•    Make a time to meet up with the business owner or the representative who you will be dealing with.
•    In that meeting remember to give quality time. By turning off your phone or onto silent shows that you respect their time;
•    In any meeting with business people it is important that you listen more than you speak. Do the 80/20 rule by listening 80% of the time and speaking 20% of the time. A great way to show that you are listening (in addition to not speaking) is to continue great eye contact and ‘interested’ body language throughout the meeting. Also show empathy and remember to give compliments to the other person when appropriate.
•    In any communication with a business person, whether it is face to face or over the phone, find out and record as much as you can about that person and also the business. When you recall any of that information at a later date, the other person will be impressed and delighted that you have remembered information about him/her or the business. This will show that you care and will assist in the building of trust and rapport.
•    Keep in contact with this person regularly. Straight after the first meeting it is a great idea to send a nice card, send a Voice4mail or even an email. Regular contact (but not too often that it appears to be like Spam) is essential to remind the other person of who you are and that you care. There are many easy ways to send a ‘thank you’, ‘thinking of you’ or other messages to people rather than just the usual email. We are all now receiving too many emails and they are more easily deleted or forgotten quickly. Make an impression and stand out from the crowd by doing things a little differently. For a very easy and cost effective way to keep in touch by sending a card go to www.sendoutcards.com/bliss. This is a fantastic business tool that allows you to send cards to business contacts, family and friends from your computer but using your own handwriting and personal photos etc. Click on the link to find out more information and you can even send a free card to anyone you wish. Go ahead try it out! I know that to receive a card in the mail nowadays is special so make sure you send a card to someone.
•    Give referrals where you can. Business to business and business to customer referrals are an excellent way for businesses to grow and to build a good reputation. Once you have established that you trust the person and the business and you are confident that they can provide reputable products or service then find out who ‘an ideal referral’ would be for that person or business.  If you are aware of whom they are looking for then it is often quite easy to find people to refer to them. Be aware that if you give a referral to someone and the person or business does not deliver a good service or product then it is your reputation that is on the line. You don’t always need to have done business with the person you are going to refer but you may know others who have done business with them and given a great testimonial. That is where being a part of a good networking group where you are continually building business relationships is a great idea as you hear testimonials of great business most weeks.

What is a Drum and Why do I need one?
By Karen Phillips from Direct Office Products

I have a laser printer - so what is a drum and why do I need one?
I am often asked what is the difference between the toner and the drum?
The drum is a waste collection unit. It is a consumable part and will need to be replaced when your print appears excessively blackened, or you get a check drum warning.
A laser beam  produces an image on a drum. The light of the laser alters the electrical charge on the drum wherever it hits. The drum is then rolled through a reservoir of toner, which is picked up by the charged portions of the drum. Finally, the toner is transferred to the paper through a combination of heat and pressure.
So, the drum is what holds the image itself.. the toner cartridges hold the black and/or color toners that are transferred to the drum.
The drum usually needs to be replaced around every 5 toners.
For more information call Karen on 1300 724 780 or email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 Well, the word now is not that “cash is king” but that now “cash is the whole royal family!”.  Cash is crucial to keeping any business running; your cash tightens up and you may as well have severed your carotid artery.  So, here are 21 really practical and down to earth tips for businesses to keep their cash flowing. 

1.    Invoice immediately or frequently.  If you do larger projects, be sure to invoice in instalments (progress claims) but otherwise invoice immediately after the job, or at least weekly.   You need to invoice to get paid.

2.    Make it easy for a client to pay.  Include your bank details on the invoice and have various options for payment, ie direct, BPAY, Credit Card or cheque. 

3.    Debt collect every week.  Yep – weekly!   Have a system, a schedule and keep notes.  When someone makes a promise but fails to fulfil, follow up as you should have noted all promises and when they were made.  Remember the adage “the squeaky wheel gets the grease”.   Squeak heaps and get those payments in quicker.  It’s a statistical fact that the longer you let an account go unpaid, the more likelihood of you not being paid – at all.

4.    Know your margins and your cycles.  And of course, keep your bookkeeping up to date.  A sale may mean income (in the books) but reality is that it’s when the client pays that’s critical.  If your average collection days are say 70 and you are buying lots of stock, which has to be paid in 30 days, you are carrying a lot.  Try to close the gap.  If you can buy on credit, 30 days from end of month, buy early in the month, so you essentially get up to 60 days.  Cut the debtors from 70 to 50 days and you’ll be ahead. 

5.    Keep stock purchases to a minimum – don’t carry any more stuck than necessary.  Of course you have to have stock to keep the business going, but know what moves and what does not.  For example, I am a MYOB software re-seller.  Some levels sell heaps and I stock these, but other levels (the very high levels) move slowly so I only order these in on a needs-only basis. 

6.    Have client/customer agreements and be sure to cover aspects such as interest or fees you charge on late payment – remember you are not a free bank for your customers; if you owe the ATO money, they have a GIC (general interest charge) why shouldn’t you?

7.    Get customers/clients to pay deposits on work – especially if you have stock.  It’s quite common for high stock items (such as cabinet makers) to ask for a 30% deposit.   

8.    Don’t release work till you are paid.  Many service orientated businesses, will not release work (ie Accountants with clients tax returns) until they are paid, or at least the old account is settled. 

9.    If you have a client who has a bad history of payment or looks to be going bankrupt, then definitely work on a pre-payment system.  With a bad history, it’s very fair to ask for repayment in order to keep doing their work.

10.    Consider “sacking” the “D” grade clients.  If they are hard work, always unjustly complain and then don’t pay – you don’t want them.  Honestly.  Move them out to make room for a new “A” grade client.

11.    Look after you’re “A” and “B” grade clients.  These are great clients and you value them, so be sure to look after them and not put so much emphasis on gaining new clients that you neglect the old.  Find at least one thing you can value add to these clients (perhaps a free report, or additional free service) to show thanks for their custom.

12.    If you have a new client who has no history with you, again work on pre-payment system for 3-6 months.  Be polite way and explain it’s standard Corporate Policy – most (especially if they have good payment intentions) will understand and be ok.  

13.    Don’t discount.  Look at a “discounting table” on the internet – it really can be scary.  You will see for example that if you gross profit margin is say 15% and you discount by a tiny 5%, then you actually have to double your sales volume to achieve the same gross profit.

14.    Ask suppliers for early payment discounts.  Although you know discounting isn’t good, doesn’t mean you can’t ask your suppliers for discounts if you pay early.  They may decide that having the payment early is worth giving out the discount.

15.    Watch your expenses.  Ensure you are not paying a fortune in phone services, or bank fees, but don’t be silly about it.  Remember you “need to spend money to make money”.  Don’t cut costs on things like marketing and advertising and these costs are really investments in your business and critical to its good health.

16.    Ensure your marketing/advertising is working.  Above I said to not cut costs, but be sure you spend well.  Track your leads.  Ask every new enquiry how they heard from you and write it down.  If you spend money on an advert that generates zero enquiry, then it’s close to wasted money. 

17.    Review/revamp your website.  We are in the age of technology and most people search via the internet.  When did you last review your web site?  Or gosh, do you even have one?   For most businesses, an effective website can really generate a lot of work.  Use it.

18.    Have a good accountant – this will help (legally) with tax liabilities and possibly reduce the need for instalment, and thus free your cash up further. 

19.    See your solicitor or accountant re your entity setup.  Not only is the setup critical for asset protection, but quite often you can (legally) pay less tax with the correct setup.  For example, why pay individual tax at 46.5%, rather than corporate tax at 30%?   

20.    Have a mentor or business coach.  Often (especially those of us in small business) we benefit from advise from a coach or mentor.  Maybe we just need someone to keep us focussed and on track, or to ask curly questions.  Don’t forget your accountant here too – a good one will help your business with more than just tax return prep.

21.    Educate yourself – read articles on business subjects, attend seminars and gain knowledge.  Sometimes it’s not about learning something new, but refreshing ourselves with reminders on what we should be doing – and then do it.      

Donna Stone is the founder of Stone Consulting, has over 25 years experience, 12 staff and hundreds of clients.  Her multi award winning Consultancy & Bookkeeping business, celebrating its 10th year in 2010, uses MYOB, Cashflow Manager & BankLink.  Learn more at www.stoneconsulting.com.au.

 
© Donna Stone, 2010

It never ceases to astound me how a member during a Key Business Meeting will say to me “Donna, I didn’t know you did that!”   The fact is that 60 seconds is not enough time to say everything you do.   In fact it’s often hard to get across not only everything you do but also how you do it, and also your business philosophies and how you look after your customers. 

I’ve been in networking groups which meet weekly for about 3 years now and I’ve found time and time again that I get the best and most leads after I’ve had a meeting with one of my members.  It’s simply a fact that if someone knows you better and what you do better and feels connected with you, then they are more likely going to give you leads.   So if you want more leads, get out there and have a Key Business Meeting with more members. 

Personally I love to have a Key Meeting after the main meeting; this ensures I have one a week AND it’s convenient.  We are both there – so it’s easy to just stay an extra hour and have a meeting.  Whether you devote the hour to one member or split the time (my preference, as I like to share) the important thing is to be prepared and of course be sure to listen to the other person.    

Donna Stone is the founder of the multi award winning Consulting business
Stone Consulting.  She is also the author of Stepping Stones to
Business Success – a book of over 200 tips on how to succeed in business,
borne of over 25 years experience working with businesses.  Learn more at
www.stoneconsulting.com.au or www.donna-stone.com.au .