Money Travels and Personals

Finding the right Accountant for your Business

2011-08-04T09:44:00.000-07:00

Few weeks ago, I was asked by the CEO of a book publishing company to fix their accounting system. I asked him why so? He said "My accountant secretly steal our company's money by adding up additional expenses in accounts payable."

What is an Accountant?
He/She is a qualified person trained in bookkeeping, and in preparation, auditing and analysis of accounts. They evaluate the financial well-being of the business and give advice regarding financial concerns.
Accountants have different specialties, there are those who focus on recording keeping, others on audit and some on government taxes. Selecting the right accountant will depend on your business needs.

If you are a small business, it is best that you hire an accountant with experience in general accounting. He/She must be knowledgeable of all your bookkeeping requirements. Must be keen on details and with acceptable work experience in bank reconciliation,accounts receivable, accounts payable,payroll and inventory management.

Here are some tips based on my experience on choosing the right accountant for you.

Ensure that he/she is Honest and Trustworthy - to verify this, ask for clearances that proves his/her integrity and honesty from previous companies he/she had worked for.
He/She must not be charged of any serious criminal charges like estafa or theft
Choose an accountant who understands your business set-up and the industry you are in.
Must be firm in implementing internal financial control policies
Choose the one that you feel you can have strong professional relationship with.
Flexible and open to changes.

Lastly, no matter how good your accountant will be. The success of the business does not depend only on your people but also to you as a business owner.

Credit granting for SME's

2010-07-22T10:34:00.000-07:00

Let's accept the fact, that businesses nowadays grows faster if they offer Credit to their customers. It is essential that companies should extend credit to clients on competitive terms so that Sales will not be lost. But, managing your accounts receivable by avoiding overdue accounts from Credit Sales must be established first.

Normally, Small and Medium Enterprises are more susceptible to great loss if giving credit to customers are not thoroughly analyzed. To avoid this, creating sound policies should be outlined before Credit granting.

Now, where to start?

Before you decide, get the FACTS. Thorough investigation protects you from fraudulent applicant who has no intention of paying you as well as the applicant who are slow in paying. Investigate the applicant by using the 5 C's of CREDIT with Tagalog layman terms.

CHARACTER - personal traits/reputation "SINO KA"
CAPITAL - assets of debtor "MAGKANO KA"
CAPACITY - ability to earn/pay "KAYA MO BA"
CONDITIONS - refering to personal/business "Anong Kalagayan Mo"
COLLATERALS - other property/security "Ano pang Iba na meron ka"

From the basis above, how are you going to obtain those facts?

Create a Credit Application Form which will indicate the following:

Company Name with telephone and fax numbers as well as mobile number of contact person
Full Name of the Proprietor(s) /Stockholders for Corporation
Complete business address
Number of years the company is operating
Number of years of the company is operating in the stated address (this information will help in avoiding being victimized by "fly by night" customers)
Banking information (with a separate letter authorizing your company to verify)
Financial Standing
Supplier References
Applicant's customer references

And lastly, ask the following documents:

DTI or SEC Registration with Articles of Incorporation & By-Laws
Business Permit updated
Bank Statements of at least three (3) months
In-house Financial Statement
Proof of Billing of the business address
Letter authorizing your company to verify bank information provided
Photo of Warehouse and Office

So, with all the data obtained you can start verifying through series of phone call and site visits.

Difference of Feasibility Study and Business Plan

2010-07-05T10:45:00.000-07:00

What is the difference between Feasibility Study and Business Plan? Most of the time we encounter these words whenever we thought of starting a business. When you tell your friends or colleagues that you want to start business, they will ask you " Do you have business plan?", or "Did you study that business already? Do you think its feasible?" . For some people who did not study Business Management or a Commerce course, these words seems confusing. So what's really the difference? "A Feasibility Study analyzed thoroughly provides a lot of information necessary for the Business Plan." Then what is Feasibility Study? Feasibility Study - designed to provide an overview of the primary issues related to a business idea. In other words, a feasibility study determines whether the business idea makes sense. It looks at three major areas:

Market Issues
Organizational/ Technical issue
Financial issues

Now, if the Feasibility study indicates that the business idea makes sense, the next step is the Business Plan. Then what is a Business Plan? The Business Plan continues the analysis at a deeper and more complex level, building on the foundation created by the feasibility study. It gives you the opportunity to find any weaknesses and reveal any hidden problems ahead of time. It allows you to foresee your possible competition in your target market, gives you the idea of your operating expenses as well as your manufacturing process needs. Furthermore, it clarifies your goals and objectives. So, Feasibility Study and Business plan are more important for company owners than for anyone else, including loan officers if you might need additional capital. But then, it should be realistic and based on valid assumptions.

Starting a Business without Capital

2010-05-01T07:44:00.000-07:00

DO WE REALLY NEED MONEY TO START A BUSINESS?

In high school, I was one of those who had a good handwriting. At that time there were no computers yet in our town and even internet to look for some research. To have a high grade it was important that your school projects were written neatly and of beautiful handwriting. Well, I was one of those who have that skill at that time. I would make contract with my classmates who were lazy and have money to spend for the projects. I make their projects at home written neatly and after I finish it, I charge them with my talent fee. Sometimes, I also made researches for them. I was already learning, and at the same time I was paid by my friends who were not so interested in their project at that time. After research and I wrote articles, they pay me. That was how I make money when I was young.

The old notion that capital is required to start a business is still a problem for those who want to have one. Everybody wants to uplift their way of living. I think it’s just normal.

My younger way of making money made me realize I was on right track when I watched this video.

Check out why. It shows that it ‘s possible to start business without capital. This was an entrepreneur boot camp of Tina Seelig during the Stanford Technology Venture Program.

Tina Seelig is the STVP Executive Director. And in one of her courses, she challenged her students with a business problem:

If you had five dollars and two hours, what would you do to make as much money as possible?

Watch this very interesting six minute video below. You’ll be surprised at what the students did:

This video teaches us that providing value creates income. We use our skills and knowledge as an asset to create income – and use them to provide value to others.

To quote Tina Seelig:

The lesson here is that so often we frame problems way too tightly. And if we keep unpacking and unpacking them, we realized that we have resources that are much larger and more valuable than we even imagined. But we also realized that our own skills that we have and the opportunities around us are bigger than we ever thought at the beginning.
So have time to analyze what skills we have and knowledge and how we can make it providing value to others that will give us income opportunities.

Turkish Food in Timog Ave.

2010-02-21T08:45:00.000-08:00

Aren't we tired of the usual fast food like Mcdonalds, Jollibee, KFC and so on..... Well, I'm one of those who wanted to look for something new. While I was browsing the newspaper, I came across this write-ups of Julie Yap Daza about this newly opened Turkish Bar and Restaurant along Timog Avenue. I read the article and was convinced that I should try this newly opened restaurant. Actually, they just opened last December so you can say that as of now they are just almost three months. The restaurant is called TURKCE YER and it's is accessible by car or by public transport. So, I went there with my buddy who is a food critic when it comes to Mediterranean food. As we arrive there, we were greeted by the friendly staff and I guess it's the restaurant manager who looks like Turkish that also welcome us. At the time we went there its past 2:00 pm so not so much crowd at that time. I ordered this Kebab meal that only cost me around P/ 125.00 pesos that comes with a chicken kebab , turkish rice and turkish salad sidings with drinks already. The chicken kebab was so golden,..soft yet crispy and ..take note..it's grilled!!! If it's me who have done it, might be it's burned already...haha!! My buddy ordered this Pirsola which is a Lamb chops paired with pita and Turkish salad. As he started to taste it... all i can hear it's very good!!! Well for a food critic who have been looking for this perfect mediterranean food surely be addicted to it...LOL.. The lamb chops were also soft that you won't have the hard time of cutting it into pieces. And but of course, will always have the green salad and they really serve it fresh. I take out the left over and for 2 days its still fresh...ha!! I would like to say thank you to Chef Dohan who was constantly checking us if food is good or are there something that we want. And lastly the Turkish tea that was served was really great!! I'm not a tea fanatic but this one really works fast. Chef Dohan said it's for the tummy to help digest the food we just eaten. We were so full and after taking the tea...viola... my tummy was alright. We will definitely be back in this restaurant...and i hope will be able to watch also the belly dancers...