Building A Stellar busIness

This book is actually two books in one.
Chapters 1 - 6 cover the financial structure of your business and the why and how it is vital to your success. It helps you to understand what to look for and what to review, and how to see your business from a financial perspective in order to understand where your profits are currently coming from and to then continue to be successful, financially, going forward.
Chapters 7 - 9 cover other, but equally important, financial aspects of your overall business. These include the importance of structure for your employees in your business, building a strong outside support team and learning to utilize them, and then finally some guidelines for protecting all of your assets.
Our goal was to write a financial reference book that, once read, could then be opened up to any chapter for a quick reread and review.

Acknowledgments ...........................................................3
Introduction ....................................................................8

Chapter 1 - A Business Check-Up

Straight Shooting Questions ...............................9
Are You Making Money? ................................10
More Questions ................................................13
Goals and Details ..............................................13

Chapter 2 - Know Where Your Money Is

Why Maintain Good Books? ............................15
Make Us Better Consultants ...........................16
Getting Your Act Together ...............................19
Set Up Your System ..........................................21
Giving Access and Letting Go ..........................23

Chapter 3 - Document, Document, Document
Documenting Systems ......................................25
Filing Systems ...................................................30

File System #1 ..............................................32
File System #2 ............................................33
Filing Notes ......................................................34
Receipts .............................................................34
Cash Receipts ...................................................35
Other Documents to Protect and Maintain .....37
One Final Word on Documentation.................37

Chapter 4 - A Meaningful Set of Financial Statements
Behind the Numbers .........................................39
The Meat and Potatoes of a Financial Statement
Your Profit & Loss Statement .......42
Income .........................................................42
Profit Margin ................................................43
Expenses – Where does all my money go? ...47
The Balance Sheet ............................................49
Assets ............................................................49
Liabilities ......................................................49
Equity ...........................................................50
Other Reporting ...............................................51

Chapter 5 - Show Me The Money

Billing Your Clients ...........................................53
Billing based on a project .............................54
Billing based on monthly service and project completion ....................................................55
Billing based on monthly flat fee ..................56
When billing goes awry ................................57
Collecting Those Receivables ...........................58
Paying Your Bills ...............................................60
Payroll Employees .........................................60
Independent Contractors .............................61
Inventory ......................................................63
Other Payables..............................................65
A Word About Assets ........................................66

Chapter 6 - Budgeting and Forecasting

How Do I Make The Money I Want To Make? ..........................................................69
Forecast With No History .................................70
Fine Tune Your Forecast ...................................71
Your Assumptions .............................................72
Working With The Highlights ..........................73

Chapter 7 - Human Resources

All Shapes and Sizes .........................................75
Structure of Your Company .............................76
Job Descriptions and Cross-Training ................79
Human Resource Policies .................................82
Employment Contracts .....................................85
Payroll Companies ............................................87

Chapter 8 - Building Your Support Team
It Takes a Village ..............................................91
Bookkeepers .....................................................91
Controllers/CFO (Chief Financial Officer) .....93
CPA or Tax Preparer ........................................94
Lawyer ..............................................................97
Business Agreement .....................................97
Contracts with Clients ..................................98
Collections ....................................................98
Succession Planning .....................................99
Franchising ...................................................99
Insurance Agent ..............................................100
Financial Advisor ............................................101
Banker .............................................................102
Credit Card Merchants ..................................103
IT Support ......................................................104

Chapter 9 - Some People Steal
Keeping a Watchful Eye .................................107
Bookkeepers and Treasurers ...........................108
Your Staff .......................................................109
Internal Controls ...........................................110
Who Has Access To What? ............................111
Safeguarding Your Files ..................................112
Money Coming In ..........................................112
Money Going Out ..........................................114
Separation of Duties .......................................116
Safeguarding Your Assets ................................117
Conclusion ..................................................................119
Glossary .......................................................................122
About the Authors .......................................................124