So what do you care if you’re self-employed and don’t have any employees?  How about being candid with yourself?  You might be the greatest widget maker in the world, but can you really balance your books?  Can you create the best marketing campaign for your business?  Can you organize your office for maximum efficiency?  Most of us can do one or two things really well, but not everything.  That’s why we have coaches, marketing consultants, bookkeepers and accountants who specialize in their fields, so that we as business owners can focus on what we do best.

Honestly, if you could use some help with your bookkeeping, be sure to call Spark.

The post Employee Reviews: Why Candor is important appeared first on Spark Business Consulting.

Wicked Good Cupcakes, in Cohasset, MA, a client of ours, is appearing on the show on April 26th!  Obviously, the show has already been taped, but owner Tracey can’t reveal the results.

To top it off, she will be interviewed on 20/20, which airs right after Shark Tank.

What do you think it would cost a business to buy that kind of air time on a national broadcast?  Millions!  Free publicity is one of the greatest forms of advertising that exists today.  The story gives instant credibility because it’s not the company saying how great they are, it’s a reporting giving an unbiased opinion, or in some cases, interviewing a business owner as an expert in their profession.

Think about what’s going on in your business that would make a good news story.  Often times local newspapers will run a story about a business that has reached a significant anniversary date, like 50 years!  Even 10 years is a big deal these days, as the majority of businesses close before their 5th year.

If you get a chance to watch the show, please let us know what you think.

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Fastest-Growth Industries for U.S. Small Businesses in 2012

1. Residential building construction: 14.77 percent
2. Building custom software and servers for businesses: 14.29 percent
3. Machinery, equipment, and supplies merchant wholesalers: 13.75 percent
4. Management, scientific, and technical consulting services: 12.31  percent
5. Architectural, engineering, and related services: 11.40 percent
6. Foundation, structure, and building exterior contractors: 11.37 percent
7. Building finishing contractors who make additions, alterations, maintenance  and repairs: 11.32 percent
8. General freight trucking: 10.41 percent
9. Services to buildings and dwellings, including pest exterminators,  janitorial services, and landscaping: 10.11 percent
10. Other specialty trade contractors, including site preparation activities and  other specialized trades: 10.04 percent

The average industry growth was 8%.  More than half of the top ten are related to the building industry, both residential and commercial.  It makes sense, if you know anyone locally in the trades, they are busier now than they have been for the past several years.

This is great news for our economy.  As one industry grows, they hire more personnel, reducing the unemployment levels and putting more disposable income into consumers’ pockets.  Then other industries start to follow suit.  Those newly hired employees buy more clothing, take more vacations, eat out more often, and so on.

For a small business owner, it’s important to manage growth when it happens.  Being overly optimistic and ordering too much inventory can be a huge mistake, while not having enough inventory to meet demand will mean that your potential clients will go elsewhere.  In a service type of business, it means hiring enough staff to provide great customer service without over-hiring and not being able to make payroll if things don’t quite turn out as planned.  It’s all about finding the balance.

When a company begins to experience an increasing in the growth curve, that’s a great time to hire an outside bookkeeping company.  Having the financial records in good order will help management keep operations on track.

The post Fastest Growing Industries in 2012 appeared first on Spark Business Consulting.

I’ve spoken to many business owners who struggle with this.  Many times they end up under-valuing their time.  Whether this is a lack of confidence or a misplaced empathy for the paying customer, it’s a big mistake.

If your prices are too low, customers will wonder if you’re any good.  Your customers will be the bargain hunters.  But are they the best target market for you?  Would you rather work more hours for less pay?  Frankly, the customers you get in that situation usually end up being the ones who are a pain in the neck, always looking for extras and taking up more of your time than usual.

I’ve heard so many stories of busy entrepreneurs raising their prices in order to be able to turn down business they can’t handle, and having the opposite affect!  When you raise your prices, those who are looking for someone who’s really good at what they do will be happy to pay the higher price for quality work.

I know, it sounds great, but not so easy to take that leap of faith.  I read an article at entrepreneur.com that suggested a great tip:

“Want to boost sales? Skip the discounts. Instead, offer an extra something for your customers when they participate at full price. A bonus one-hour consulting session. A 10-minute add-on to your massage. That way, you can keep your product value and pricing intact while still enticing customers to make time-sensitive purchase decisions.” —Erika Napoletano

So check out your competition and know what they are charging, but set your pricing according to how you value your time.  If you know you’re worth it, don’t be afraid to charge accordingly.  If your customers are getting good value for their dollar, they will pay it.

And your bookkeeper will be happy to see the increased cash flow, too!

The post Pricing your Services appeared first on Spark Business Consulting.

This was the headline from Pantagraph.com on June 14, 2012.  It seems that a bookkeeper for the Roanoke-Benson School District had helped herself to $100,000 over the course of her ten year employment with the district.

A year earlier, an auditor indicated in his report that there was a “significant deficiency in internal control over financial reporting.”  No kidding!

How would you like to find out that an employee whom you had trusted for over ten years had been stealing from you the entire time?  I don’t think so.  Not a good day!

So after the loss of $100,000 that could have gone to music programs, art programs, or new textbooks, the school department conducts a review of their accounting procedures!  Well it’s about time!

Don’t be naive about your company’s financial records.  We all like to think the best of people.  However, greed and money problems have a way of turning people dishonest pretty quickly.

Don’t give anyone the opportunity to steal from you.  By hiring an independent bookkeeping company to oversee your financial reports, you can have another set of eyes to spot any issues before they become serious.  Even the most honest of employees make mistakes that could cost your company.

The post Having an Independent Bookkeeping Company can Save your Business appeared first on Spark Business Consulting.

To begin with wouldn’t you want to choose a career path which is in demand?  The article confirms that many business owners know that they are not good at bookkeeping, and they also know that their business could rise or fall based on how well the books are kept.  Even if they can do the bookkeeping themselves, they may not want to, or have time to.

Furthermore, accounts who make take on bookkeeping clients may soon find that they need to outsource the bookkeeping, as they are not really trained on small business bookkeeping any more.

I guess we chose the right career path, because there are sure are a lot of business owners who need help with their bookkeeping!

To further quote the article, “To be successful, independent bookkeepers need to be thorough [check], dependable [check] and  accurate [check] as well as skilled in using accounting and sometimes spreadsheet  software [check].  You must enjoy paying attention to details [check], and honesty and integrity  are crucial [check].  If you’d be tempted to go along with a client who asks you not to  report or to hide income, it’s best to look for another business because you won’t last long in this one.  A client who’ll ask you to use questionable  practices may have no compunction about not paying your bill.”

Whew, made all of the requirements!  I’m glad that entrepreneur.com agrees that we’ve got what it takes to be great bookkeepers here at Spark!

The post Bookkeeping as a Business appeared first on Spark Business Consulting.

Lulabelle is a European Lingerie Boutique which offers both contemporary and the finest lingerie, sleepwear, loungewear, swimwear, and even accessories. We specialize in custom bra-fittings and offer collections from Europe; including Italy, France, and Belgium.

Rated Best of the New Stores by Boston Globe Magazine in 2012, Lulabelle was first established in Scituate, MA. in 2010 by owner Donna Morton. Lulabelle has been at the Derby Street Shoppes in Hingham, Ma. now since September of 2012. A former creative director for several international  brands, herself, and previous fashion designer, Ms. Morton wants to help women of all shapes and sizes look and feel more beautiful. Her philosophy is even if you don’t like something about  yourself, you should be able to be pretty and feel happy in the moment you are in right now.

The post Lulabelle appeared first on Spark Business Consulting.

Maybe I’m prejudiced because they are clients of Spark Business Consulting, but I’m not the only one who thinks this is one of the best restaurants around.  Orta was given a Diner’s Choice award by opentable.com last year.  And in 2011, they were Voted Best Italian Restaurant — SOUTH in Boston Magazine’s annual “Best” contest.

Named for a lake in the Piedmont region of Italy, Orta was founded by Chef Jimmy Burke and wife, Joanie Wilson. In 2012 the restaurant was bought by Chef Brett Williams and his wife, Cara, who will run the front of the house.

So come on down to Orta, grab a drink at the pizza bar, and watch the chefs preparing your meal in our open kitchen. Their goal is to create a family atmosphere for their guests to enjoy a delicious, authentic, Italian meal.

With Antipasta, brick oven pizza, pasta, and many delicious main courses to choose from, you’ll never go hungry.  But by all means, leave room for dessert.  How about the Traditional Tiramisu or Flourless Chocolate Torte?

After you try Orta, let me know what you think!

The post Italian Restaurant in Pembroke MA appeared first on Spark Business Consulting.

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The percentage of small business owners who use personal credit cards instead  of business cards is rising, and if they aren’t careful this could lead to  financial trouble down the road.

According to the National Federation of Independent Businesses, 49% of small  business owners used personal credit cards for business expenses in 2011, up  from 42% in 2009. During this same time period, the percentage of business  owners who used business cards declined to 59% from 64%.

There are a couple of problematic things about mixing business matters with  personal life when it comes to credit cards – some big, and some small.

Skyrocketing APRs and Accounting Disasters

In reaction to the 2008 financial crisis, the Credit CARD Act (Credit Card  Accountability, Responsibility and Disclosure Act) was signed into law in 2009  and aims to protect consumers from sudden rate hikes, unfair payment allocations  and other bank-benefiting changes in terms and conditions. But the reform only  applies to personal credit cards–business credit cards aren’t subject to these  regulations, which might lead business owners to use personal cards for their  business, but think again–there’s a loophole.

If a credit card company determines that a business owner is using a personal  credit card as “an extension of credit primarily for a business, commercial or  agricultural purposes,” they can raise the APR without much notice, essentially  making themselves exempt from the CARD regulations for personal credit cards.  Once this happens, it could be open season, with the credit card issuer  potentially denying zero fraud liability and other protections or rewards on the  card.

The other problem of using a personal credit card for business reasons is  more of a headache than a possible legal liability, it’s a record-keeping issue.  Business credit cards have a variety of accounting features to help make  budgeting, expense reporting and tax filing easier. For example, all of the Capital One Spark Business  cards  have this feature – but these bookkeeping features aren’t usually available with  personal cards, which might have categorized spending reports, but aren’t meant  to be used for business reporting. Besides, it’s likely that a small business  owner using a personal credit card is also using it for personal expenses making  expenses mixed up and the spending report features will be useless for their  business.

Why Are Business Owners Getting Personal?

One of the main reasons business owners are using personal credit cards is to  reap rewards. Personal credit cards are heavily marketed with a slew of great  features – from 0% APRs to thousands of frequent flyer miles—perks most business  cards don’t come with.

It’s tempting for a business owner, especially the owner of a small business  that might be operated from a kitchen table, to get a personal credit card that  gives a year of interest-free purchasing power and cash back on all purchases  and use it for everything. Why not combine all those purchases for more points?  See above for a reminder why – it’s just not worth the risk, not to mention the  hassle.

The Business of Rewards

Business owners who travel frequently might be tempted by a card like the  GoldDelta SkyMiles Card from American Express, which offers 30,000 bonus miles  for signing up and spending $500 during the first three months. However, that  same card comes in a business version and offers the same 30,000 bonus miles,  the same annual fee (which is waived for the first year) and the same double  miles on Delta purchases and one mile per dollar on all other purchases. Plus,  the GoldDelta SkyMiles Business Credit  Card  gives cardholders access to the American Express OPEN Savings program, which  gives automatic savings of 3-10 percent at OfficeMax, FedEx, Hyatt, Hertz and  more.

Meanwhile, a card like the Capital One Spark Miles for Business  Card  offers 10,000 bonus miles for signing up and spending $1,000, plus 5,000 more  miles for adding an employee card to the account.

The bottom line is this: even the smallest business should keep their  personal life out of their business one when it comes to credit card. It pays to  be all business – and business owners who don’t take their businesses seriously  enough to operate them with business credit cards are doing themselves – and  their businesses – a disservice.

Michael Germanovsky is a personal finance expert with in-depth knowledge  of credit cards, charge cards, and pre-paid cards. His tenure as a personal  finance expert began at the Novoye Russkoye Slovo, a partner of the New York  Times International Weekly. In 2011, Germanovsky created the Student Credit Card  Education Initiative and sounded awareness of high interest rates. At large,  Michael is editor-in-chief at Credit-Land.com.

The post Mixing Business and Personal Expenses on Credit Cards appeared first on Spark Business Consulting.

Every once in awhile, I run across a blog post that’s so good, I don’t think I could say it any better myself, so I find it easier to pass the information along to you.

This once was written by Gwen Moran for Entrepreneur.com. 

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You have a great business idea, and you’re lining up the resources to make it a reality. But if you don’t establish solid corporate and accounting strategies from the start, you could be putting your business in peril before you ever get off the ground, says Gail Rosen, a CPA in Martinsville, N.J.

“If you aren’t capturing your deductions or you make a mistake because you didn’t know you needed to pay a certain kind of tax or workers’ compensation insurance, it can really get expensive,” she says.

Rosen recommends startups follow these five steps to get off on the proper financial foot.

1. Be thoughtful before organizing. “So many businesses just start up as a limited liability company (LLC), but that might not be the right form of organization,” Rosen says. Understanding whether to operate as a sole proprietor, partnership, S Corporation, C Corporation or LLC has tax implications, and each offers different levels of liability protection. And if you incorporate, you can’t change back to an LLC later, so it’s important to know the best structure for your business.

2. Know your tax responsibilities. Depending on the state you plan to do business in and the type of business you’re launching, your tax responsibilities will vary and may include federal, state and local payroll taxes; corporate taxes; sales or use tax; or others. If you have employees, you may also have workers’ compensation or other insurance requirements. Being unaware of these responsibilities can be costly, especially if you’re subjected to penalties, interest and fees, Rosen warns. While you can consult with the IRS, your state’s revenue agency and local tax-collection authorities, it’s also a good idea to consult with an accountant.

3. Budget and track expenses. Playing fast and loose with the checkbook can get you in trouble in a few ways. First, it can mess with your cash flow, which is the reason many businesses fail. Also, when you lose track of what you’re spending, you could be missing out on valuable deductions for your business. “Every time you’re deducting $1,000, you’re saving a significant amount of money on your tax bill,” Rosen says.

4. Use technology to your advantage. Tame the paper tiger and keep your finances more organized by using a good accounting program like QuickBooks or FreshBooks, Rosen says. You’ll have less financial organizing to do at tax time, and you’ll likely reduce accounting fees if you’re able to hand over a digital file to your tax preparer. Also, consider using apps like XpenseTracker and ProOnGo, which can help you organize receipts, log mileage and track spending whether you’re in the office or on the road.

5. Establish good bookkeeping practices. One of the biggest mistakes entrepreneurs make, according to Rosen, is ignoring their financial management at the start, either because they are overwhelmed or they think their business is too small to warrant formal bookkeeping practices. However, the sooner you’re able to establish good practices, the less likely you’ll be to rack up penalties, interest, late fees and other unnecessary expenses.

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One thing that I would add:  unless you are in retail or some other business where you are paid at the time of the sale, establish your billing process from the beginning.  This will save a lot of time down the road, and will ensure an even cash flow.

Do you own a business?  Did you start off on the wrong foot with your financial management due to lack of good advice?  I’d love to hear your stories and lessons learned.

The post Business Finances – 5 Steps to Get Them in Order appeared first on Spark Business Consulting.