5 tips for improving business efficiency

Many business owners and managers are so busy working on what their customers and clients need that they forget to take the time to work on their own business.

But being efficient is the first step in business success, so it’s worthwhile investing the time.

Five key areas to focus on that will make a difference include:

1. Getting organised

Decluttering and organising inboxes, filing systems and other paperwork is essential.

For every piece of correspondence received, whether physical or by email, there are four options:

• Bin it/delete it
• File it/archive it
• Give/forward to someone else
• Action it

It is important to retain a lot of financial information for tax and many other purposes. Having an adequate and systematic filing system will help.
Also, do some research or get advice on which information needs to be kept, and for how long.

2. Reduce debt

Review current debt and the different types and interest rates being charged.

With the level of competition among financial institutions, it is worthwhile comparing offerings to see if there is a better deal – it may be possible to refinance to pay less interest.

The usual rule of thumb is that high interest-bearing liabilities should be paid off first.

Also consider paying off non-tax-deductible debt as quickly as possible.

For those who can afford to do so, slightly increasing repayments and increasing the frequency (from fortnightly to weekly) can also decrease the life of the loan and overall interest paid.

3. Look after cash flow

The other side of the coin to debt is cash flow, often called the lifeblood of a business.

Any business that offers credit needs to actively manage this, including setting – and sticking to – terms of trade and following up on outstanding payments.

Business owners shouldn’t feel concerned or embarrassed about following up with slow-paying customers – if they’re not paying, they’re probably not worth keeping.

Experience has shown that slow-paying customers often become non-paying, and ultimately cost the business money.

4. Review expenditure

Insurance for both business and personal needs should be reviewed at least annually to ensure cover in the event of a claim is adequate.

Also review other expenditure – for instance, can a better deal be negotiated with the telecommunications provider?

Are there high bank account fees that could be eliminated? A change to a different plan or account may be all that is needed, rather than changing suppliers.

5. Business succession

While no one likes to think about it, illness or death can occur at any time. If contingency plans haven’t been made, this can leave business partners and employees, as well as family, in extremely difficult circumstances.

Business succession is often perceived as being too difficult to think about, but it is better to have some plans in place rather than nothing at all.

Everyone’s circumstances are different. It’s important to spend some time identifying requirements and issues so an action plan and time frame can be developed.

We thought to share with our readers this beautiful piece of advice

source: http://www.rebonline.com.au/blog/9071-five-tips-for-improving-business-efficiency

5 Interesting Facts About Accountancy

This post has been written by Ezekiel Ayonrinde – He currently works on behalf of Perrys Chartered Accountants in London.

Accountancy has long been made fun of. People like to think of accountants as dull, boring individuals obsessed with number crunching. What they might not know is that the profession has its roots in ancient history, that a number of famous celebrities started their life off as accountants, and that accountants have even invented products we use every day. Here, we’ll examine five interesting facts about accountancy:

1. Accountancy is one of the oldest professions in the world

Many people think of farming or law as some of the oldest professions in the world. What they might not know is that accountancy has its roots in prehistory. Strange but true.

The Smithsonian museum has an exhibit from South Africa’s Blombos Cave that is over 75,000 years old. The Blombos Ocher Plaque has markings on it that might have been used to record information. The organised pattern suggests it wasn’t for decorative purposes.

Move forward in time and you will see the first accounting system being used in ancient Mesopotamia. Farmers relied on accounting 7,000 years ago to record their crops and herds; using it to determine if they had a surplus at the end of season.

Bookkeeping on clay tokens was used in ancient Iran between 4000 and 3000 BC. These are the first example of graphical representations used in accountancy.

The Romans were fond of using accounting systems to help run their empire. The Emperor Augustus, for example, created the first government accounts in 23 BC (called a “rationarium”). It listed revenue earned from the empire, how much was in the treasury, in the hands of tax officials and contractors.

2. Many famous celebrities were accountants

Before they hit the big time, many famous celebrities started life off as accountants. These range from well-known authors to singers and film stars.

Mick Jagger was a high achieving student at Dartford Grammar School who went on to study to become an accountant at the London School of Economics. His band, The Rolling Stones, became big and he left university to pursue a career as the frontman of one of the world’s most successful bands. You know the rest.

John Grisham, the famous novelist, studied Accountancy at Mississippi State University. Janet Jackson and Kenny G are two musicians who studied accounting. Robert took accounting lessons but quit.

Actor and comedian Eddie Izzard studied Accountancy at Sheffield University.

In the world of business, J.P.Morgan started off his career as a junior accountant before founding the iconic investment bank. Arthur Blank, co-founder of the famous American DIY chain Home Depot, studied accounting at university before working as an accountant at Arthur Young. Phil Knight, co-founder of Nike, studied accounting at university.

3. St Matthew, the patron saint of accountants

Did you know that Accountancy has its own patron saint? St Matthew, also known as Matthew the Apostle, was one of Jesus’ first disciples and is the patron saint of accountants, tax collectors, bankers and perfumers. He worked as a tax collector for King Herod before joining Jesus’ cause and is most famous for authoring the Gospel of Matthew. His saint day is the 21st September.

6. Athletes have even been accountants

Accountants have even doubled as athletes. One of Australia earliest Olympic heroes, Edwin Flack, won gold in the 800 and 1500m runs at the 1896 Olympic Games in Athens. He also won bronze in the mixed doubles tennis event.

Edwin Flack was an accountant when he achieved Olympic success. He worked at his family’s firm in Australia in 1898 and joined Price, Waterhouse & Co (now PricewaterhouseCoopers) when he was 21.

5. And finally… an accountant invented bubble gum

Accountants are not normally known as inventors, but did you know that one invented bubble gum?

Walter Diemer was working as an accountant for Fleer, a confectionary company, when he came up with developed the recipe for bubble gum in 1928. His product, Dubble Bubble, became a success and sold millions in the first year. New flavours were added gradually and products like gumballs were developed by the company.