Overhead expenses and the cause or goal of the nonprofit can be two good measurable indicators of success within a nonprofit organization. The Bill and Melinda Gates Foundation point out that they use many measurable indicators to prove their cause is a success without limiting themselves to JUST the overhead metric. Their causes or goals are measurable, attainable, and set within a time limit to encourage continued movement towards the goal/cause. SMART goals, as you might have heard them referred to in the for-profit sector.

Different from the for-profit sector that can increase overhead to increase success, nonprofits find themselves the center of negative questioning in the media when they increase overhead to reach their goal. Increasing their overhead then results in the reduction of dollars towards their cause, regardless if the cause is being measured and attained within a specific time limits. Causes that are measured and being attained SHOULD prove the success of the nonprofit and not JUST the use of funds towards overhead expenses.

The Overhead Myth letter (found here) does a good job of describing just how wrong it can be to solely use overhead spending as a key indicator to success. The continued review of overhead spending by potential donors can be detrimental to nonprofits in the long term as they deter away from making the investments in infrastructure, workforce and other forms of capacity, preventing them from having a greater impact in serving their constituencies. As Mr. Pallotta points out in his TED presentation (found here), organizations must be give the freedom to attain the kind of scale in their operations that will enable them to make more of a difference.

However, as the Overhead Myth letter also points out, overhead indicators do say something important about nonprofit management’s effective stewardship and can be a red flag for poor financial management. The question then becomes how to link financial indicators, like overhead ratio, with other nonfinancial indicators of performance and outcome effectiveness. How do we determine if the additional investment in capacity and building scale is really paying off, not just in terms of how many dollars the organization is raising, but in terms how those dollars are being put to use in having an impact on the organization’s mission, cause and goal.

Performance measurement and management – the task of choosing metrics and outcome measures that truly capture the “success” of the organization in the largest sense –  may be part of the answer. As Bill Gates stressed in his recent annual letter issued  for the Gates Foundation,  performance measurement is a critical tool for effectively delivering social impact in classrooms, clinics and cities, “setting clear goals and finding measures that will mark progress toward them can improve the human condition.”

So let me ask you again… If a nonprofit is creating concrete goals, attaining those goals/causes, and doing so within a relative time constraint, but spending 60% on overhead, would you donate? This means that 40% of your dollar goes towards the cause. What about 70% given the same results? 80%? What do you feel is the ideal investment a nonprofit should place into overhead to allow that nonprofit to attain its goals?

The post Focusing on Overhead: The Nonprofit Circle appeared first on Checkbox Accounting.

In an effort to do this, we will be posting frequent Blog posts several times each month featuring our (Small  Business Advisor Toolkit) SBA. These Blog entries will include among other things:  Best Practice Checklists, Self Assessment Questionnaires and modifiable Templates.

These tools in our SBA portfolio will incorporate the latest ideas in areas as diverse as customer and supplier relationships, financial matters, employee and industrial relations, production processes and waste management. Using best practice checklists, businesses can borrow from the best current knowledge and modify it to suit their particular circumstances. Best practice questionnaires can provide a diagnosis of a businesses’ current situation and suggest a range of suggestions for improving their business practices.

In addition, business owners can use the modifiable policy documents we post to quickly create policies that will cover all the essential aspects of the process without incurring the cost or taking up the time required by developing them from scratch.

How important is it to have a clearly written Vision and Mission Statement for your Business?

Our first post discusses one of the most important elements of a business which is the businesses’ vision and mission statements. We have all heard of these documents, but rarely do we see small business owners take the time to memorialize their vision into a clearly stated document.

A businesses’ mission statement should represents a picture of where the business wants to be in the future. The statement should do two things:

If you need assistance in developing your business’ mission statement or have any questions regarding this post, please feel free to contact us.

The post Small Business Owners: Tools to Sharpen your Competitive Edge appeared first on Checkbox Accounting.

• A board should have a variety of skills, expertise, backgrounds, and perspectives in order to make informed decisions.
• Boards of charitable organizations generally focus on including members with expertise in budget and financial management, investments, personnel, fundraising, public relations, and marketing.
• Every board should have expertise in budgeting and financial management.
• The board must ensure that all financial matters of the organization are conducted legally, ethically and in accordance with proper
  accounting rules, therefore making an effort to ensure that at least one member has financial literacy.
• Some organizations seek to maintain a board that respects the culture of and reflects the community served by the organization.

LEGAL AND COMPLIANCE ISSUES

• There are no laws that directly states and defines how the board should look like. However, there are state laws that have provisions defining the minimum level of independent members on the board.
• In membership organizations, the articles of incorporation must define the roles of members when electing board members.

The post Principle 11: Board Diversity appeared first on Checkbox Accounting.

You should first break down the accounting into smaller pieces and set easily attainable goals for yourself.  Know that accounting is a time consuming process so splitting it into parts will make is more manageable.  This will also help with your stress and anxiety about accounting since you will see the completion of your smaller goals.

-Calculate minimum and ideal monthly profits
Keep track of all invoices and calculate revenue each month to make sure you can successfully keep your business running.  Calculating a number for the invoices will allow you to have an exact number you need to earn each month. Also having a minimum revenue goal will ensure that you are at least breaking even between your expenses and profit.

-Personal vs. Business
Keep your personal and business accounting separate.  Even though it is all coming in and out of your pocket, you want to keep it separate.  Don’t use your business credit card for personal expenses.  Mixing the two finances will create a false image of your true financial state.

-Keep all records
All receipts, invoices, bank statements need to be kept in an organized fashion (organize by alphabet or date).  You may think that you will remember a number for a certain expense, but it will be complete chaos if you forget.  Having a written track record of everything coming or going from your business will assure your financial state.

-Schedule time for accounting
In the mix of running your business and marketing and trying to have a personal life you need to set aside time for accounting.  Even if it is for 30 minutes, you have to schedule it in your week somewhere so you actually have time to work on it.  Keep yourself informed on your businesses finances weekly so you know exactly where your business stands.  This will also lower your stress levels so you are not left guessing how your business is doing financially.

-Hire an accountant if you can
DIY accounting can be difficult when you are managing every other aspect of your business as well.  Weigh the benefits of hiring an accountant to do it for you.  If you can afford to hire someone to do your accounting for you, hire someone!  If you are still a growing business consider computer software programs that can help you gain insight into your businesses finances.

People want to see your business succeed and accounting will make sure your business continues to exist and expand.  Follow these tips and it will lower your stress about accounting.

CPA Corporation is here for you to help you with taxes and business advisory.  Give us a call today and see if hiring a bookkeeper for your business could be beneficial for you.

The post Simple Accounting Tips for Small Businesses appeared first on Checkbox Accounting.

By: Fred Crooks, CPA

On the Saturday after Thanksgiving, customers will shop in small businesses for Small Business Saturday.  This new holiday was conceived in 2010 to promote sales in small business since Black Friday was such a huge revenue booster for the big–box stores.  Small businesses were left out of the huge sale weekend and now they have a chance to join in on the fun. Last year American’s spent $5.5 billion dollars in small businesses the Saturday after Thanksgiving!

This new holiday is making a name for itself slowly but surely.  In 2011 consumer awareness measured at 44 percent and rose 23 percentage points the next year.  Small Business Saturday with 100 million shoppers is still overshadowed by the 247 million shoppers who participate in Black Friday. There are three tips that small businesses can follow to better prepare for their new holiday:

1. Small Business Saturday is JUST the start of the Holiday Revenue

Unlike other holidays such as Father’s day or Valentine’s Day in which sales spike and end quickly, Thanksgiving is the start to the buying season.  In the fourth quarter of the year buyers stay in a purchasing mindset for a longer period of time.

Thanksgiving is the start to the month long shopping spree, which is what makes marketing for the Small Business Saturday event vital.

2.  Set specific goals for Small Business Saturday

Do you want to simply boost short-term traffic and create a temporary spike in sales?  Do you want to gain new customers or re-connect with old loyal customers?  Do you want to sustain a revenue increase for the rest of the year?  Although you want to do all of those things, you should choose one or two to concentrate on and achieve that specific goal.

3.  Know your audience

Create promotions and tailored messages to appeal to your customers.  You know what your customers have been buying and what sells the most in your business, so tap into your knowledge and create promotions that they can’t resist.  Forty percent of small businesses consider word of mouth to be the most effective way to gain new customers.  Consider offering a referral based discount and if someone gives another customers name at checkout the customer that referred him or her can get some percentage off.  This is a great incentive to boost traffic and gain new customers.

Small Businesses:  Do yourselves a favor and participate in Small Business Saturday!

The post How to Generate More Money for Small Businesses appeared first on Checkbox Accounting.

In any company there may be dozens of Critical Success Factors and literally hundreds of KPIs to use to track your performance. Which ones are significant for any particular company at any particular time depends on what you are planning to achieve and what your current situation is, so a SWOT (Strengths, Weaknesses, Opportunities, Threats) paradigm provides a way of classifying Critical Success Factors as in the Table below.

As is apparent the set of KPIs that might be relevant to any one Critical Success Factors can be drawn from a number of processes – eliminating a weakness factor might involve improving sales per salesperson, decreasing invoicing errors, improving safety record, and so on.

How you decide on which KPIs to track and act on depends on:

1.  Industry Knowledge: What are the numbers that must be on track in a particular industry and where does the firm under review rate with regard to industry averages? What is happening in the industry that will have an effect on the firm’s viability?

2. Business Plan Objectives: A business plan based on a strategic planning exercise will provide the key objectives for the next planning period and so determine which Critical Success Factors to focus on.

3. Targeting Selected Drivers: since it is unusual that all the drivers of any one Critical Success Factor can be acted on at once it is necessary to decide which to concentrate on to achieve the stated objective. For example, increasing the customer satisfaction score could involve a range of drivers such as greater customer contact, reduced delivery errors, better installation procedures, and product design improvement. These become your KPIs for measuring how the process is going.

The post Knowing Your Company’s Critical Success Factors Can Increase Performance appeared first on Checkbox Accounting.

Attention managers! Here at e-VentExe, we are rounding up the troops and initiating our very own set of guidelines to becoming a superstar manager. Ever wondered what makes a good manager great? Sure, anyone can become a manager, but not everyone can be a great manager. Do your mind, body, and company good — challenge yourself and commit to your important leadership role by taking the exclusive Manager’s Oath.

The Manager’s Oath has three components: The Manager’s Code, The Manager’s Promise, and the Manager’s Law.

The Company Manager’s Code

As a Manager I will do my best to:

-Be clear and concise,
I will express my thoughts, ideas, and wants in a straightforward manner, while also being respectful. I will support open communication among all members. I will encourage my employees to ask questions in order to create a safe environment for learning and improving.

-Be careful with my language and gestures,
I will prevent any discomfort, mentally and physically, between myself and my employees. I will not harass, harm, or threaten my members in any way. I will not show any favoritism. I will not speak out of character when I am frustrated or stressed. I will provide an atmosphere where my employees will feel happy and comfortable and enjoy coming into work.

-Be considerate to my subordinates,
I will treat my employees like how I want to be treated. I will praise them for their efforts and accomplishments. I will provide constructive criticism and encourage them to continue their hard work, so they feel confident to carry forward their responsibilities.

-Be humble.
I will not take all the credit when a project succeeds. I will get off my high horse and shower my employees with compliments. I will make my employees feel appreciated and motivated to thrive.

The Manager’s Promise

On my honor I will do my best 
(By giving your word, you are promising to follow the ideals of the Manager’s Oath. You will put in a considerable amount of effort to live by the points depicted in the Oath. You will measure your accomplishments with your own standards and follow your best judgments, uninfluenced by peer pressure.)

To do my duty to my employees and my company 
(You will provide them with the necessary training needed to succeed to growth within your company. You create a connection and are approachable to your employees. You believe in building trust and listen to your employees’ problems and will find ways to help. You invest time in employee development. You also help keep your company a strong and fair enterprise by learning about its growth plans and policies. Be resourceful and well-educated about all the processes and goals of the company. Love your employees and your company and they will both love you back.) 

and to obey the Manager Law; 
(The eight points of the Manager’s Law are principles that may lead you towards wise management decisions. When you obey the Law, other individuals will admire you for the way you treat your employees, and you will in turn, respect yourself.) 

To be a great leader at all times; 
(Many people look up to you for your skills and leadership persona. Your joyous smile, sense of humor, and words of encouragement make your employees work harder. They will do their best to see you succeed and make you look good among your higher peers. You will challenge your employees by delegating responsibilities to keep them motivated. You will participate in mundane tasks that can easily be assigned to a team member. By helping out whenever possible, you are doing your part to make your company better.)

To keep myself physically engaged, 
(Be aware of what is going on with your company and employees. No one wants a manager who is clueless about his/her workforce and business practices. Be the person employees can count on for relevant company questions. Keep updated with your employees work progress. Get to know your employees and their interests.)

mentally intact, and morally sound.
(Broaden your mind both in the workplace and outside of the business. Always be curious about everything around you, and try to incorporate what you learn into everyday leadership practices. With an inquisitive demeanor and the eagerness to learn, you can be much more intact with your surroundings and your role in the company. In order to be the best leader you can be, your business relationships with others should be open and sincere. You should value and defend the liberties of your employees. Remember your actions speak louder than words—always use your best judgment in the workplace. Furthermore, if you don’t have anything nice to say, then don’t say anything at all—use appropriate language in front of your employees. They will respect you.) 

The Manager’s Law 

A Manager is:

TRUSTWORTHY— You will tell the truth. You keep to your promises. Your employees can depend on you.

LOYAL — You are true to your company, employees, and peers.

HELPFUL— You want to alleviate as much stress on yourself as well as your employees. You will always delegate appropriate responsibilities to your members.

FRIENDLY— You are a friend to all. Not only are you a leader, you are the first one to talk to when problems and conflicts arise. You seek to understand your employees. You respect your employees, and value ideas and beliefs different from your own.

KNOWLEDGEABLE— You are the main point of contact for questions and concerns. You must be well-versed in company procedures and goals. You must be able to answer questions pertaining to his/her department and company.

OPTIMISTIC— You always look at the glass half full. You smile when given tasks. Even if you’re having an off day, you try to make the best of it with your positive vibes. You never blame your mistakes on others. You motivate others to be happy and succeed.

SELF-MOTIVATED—A Manager is not motivated by the money or praise given from others. He/she wants to be the best leader he/she can for himself; he/she believes in him/her everyday and sees it as an essential component for achievements.

CALM— You know how to play it cool when the pressure is on. You never blatantly show frustration or break down in stressful situations. You always want your employees to feel assured that everything is running smoothly.

For more information about e-VentExe, please visit them at http://e-ventexe.com/.

The post From Scouts to Managers appeared first on Checkbox Accounting.

We all know what the economy downturn has done to our businesses.  The unexpected collapse of our financial health of our country just about
wiped away many dreams and plans for our business future.  Those companies that stayed open, our workforce changed and took a very different shape.  Employees were laid off; those that kept their jobs had to wear many hats to get the job done.  Depending on your market segment, you may only now begin seeing resurgence in bottom line improvements and profits.  Hope for our business future is beginning to take shape again.  But what organizational challenges are we dealing with today, after the aftermath?

I like to call this time a Period of Reengineering.  Organizations are picking up the pieces and beginning to rebuild their workforce infrastructure.  Strategies are forming around the future with the hope that businesses will continue to thrive again.  Now is the time to ensure that our culture rebuild into a stronger workforce with long term sustainability.  The time is now to get it right-for our employees as well as for building a healthy workforce.

The first attempt in understanding your workforce health and attitude is easily uncovered in an Employee Engagement Survey.  Crafting specific questions to uncover how your employees feel about their positions, culture and company will provide you with a landscape for improvement.  A very important tip in engagement surveys is in the marketing of them to your workforce.  If you communicate to your employees the need for workplace improvement without retaliation, you are far more likely to receive true and honest feedback.  If you don’t have a trusting culture and/or receive honest feedback and do nothing with the information, you will have a much less change for future engagement survey successes.  Your employees will just not trust your intentions.  It’s all up to you!

The post A Period of Reengineering: Your Current Business Situation appeared first on Checkbox Accounting.

Think back to how many times you have watched a commercial on television and really thought to yourself, “What an awesome commercial!!” Can you remember what the commercial was for? Or the brand? Awesome marketing, poor execution of the brand awareness and recall.

Brand recall is IDEAL for top-of-mind awareness with marketing. For a person to recall your brand in a time of need, that means you did your job successfully! Maybe they will not need your service today, but they might need it later on down the road. Who do they call? The company that has targeted them enough AND matched their own business ethics, personality, and way of thinking.

The post Are You Managing Your Brand Correctly? appeared first on Checkbox Accounting.

A suggestion is an idea that will benefit the business by solving a problem, reducing costs, improving operations or procedures, enhancing customer service, eliminating waste or spoilage, or making it a better or safer place to work.

One of the most efficient and economical ways to gather new ideas is through the use of the people who know your operations intimately – your employees. Listening to and acting upon sensible employee suggestions presents the opportunity to improve profitability (many employee suggestions relate to wasteful practices and irrational policies) and at the same time increase the level of trust and teamwork within your business.

At a time when businesses are paying consultants and advisors to find newer, better, and faster ways of doing things, sometimes the obvious slips right by because they fail to draw on inside knowledge.

Drawing on internal knowledge is easy! During monthly, quarterly or yearly employee reviews, you can use this time to also accept reviews and ideas from employees, especially if they have limited daily interaction with their manager’s boss. We always let the employee go first because they are sometimes excited about sharing their ideas and this gives us further insight into how they are doing their job. Sometimes it is not even as formal as using this suggestion form below, especially if you are a small company, however some people need the structure of the document we provide below!

Sometimes employees, especially new employees, will not actively volunteer relevant information because they are concerned about the process or if their manager will like their suggestion. If you treat that all suggestions as important and even hold a quarterly or yearly employee meeting to discuss suggestions, your innovation level and ultimately your growth and profit will begin to increase because each employee will begin to take ownership in their idea.

The post Getting Your Employees to Grow YOUR Company: Tool #4 appeared first on Checkbox Accounting.