Computer Issues?

There's times when my PC can be a little frustrating. This is mostly because I'm trying to do too much at one time which tends to hurt the performance. While in some cases a more powerful machine might be needed, I've found that there are a few options to try before going that route.

What are these things?

• One is to simply clean up my computer. Remove any files or programs that don't need to be there (don't forget the recycle bin...).
• After that, I run the Disk Cleanup utility and the Defragmentation process (both of these should be on a schedule).
• Now, the drive has to be pretty full for it to noticeably slow down, but one thing I did made a huge difference and that was adding RAM (Random Access Memory) to my computer. Think of RAM like a funnel, the bigger the funnel the more information that can get through.
• Along those lines would be to instal a SSD (Solid State Drive) to replace the disk drive. These are much faster, extremely reliable, and while they used to be much more expensive the prices have dropped dramatically.
• Last, but certainly not least (because I have to mention this), check for viruses. Lately, viruses have been even more of a major issue, so make sure that you have virus protection and that it's up to date.

What to remember: Keeping your computer running smoothly is a lot like house keeping. You should clean on a regular basis, throw out the things that need to be thrown out, and make sure that you have the tools to get the job done.

Financial Report Card

In Business, it's all about the money that comes in to the business and that's why financial statements are like a company's report card. That doesn't mean that you can't give back (or that it's not extremely important) or that you can't create a business model where you never have to actually work because you love what you do. No, what that means is that for a business to stay, well, in business, it has to make money. Financial statements are what show you how the company is performing and whether it will get to keep performing.

Which statements are most important? They're all very important in their own way, but we'll list a couple here that we think you should keep on hand and review regularly.

• Income Statement (since this includes revenue, expenses, and any resulting net profit or loss)
• and
• Balance Sheet (since this lays out the ending balances in the comapny's asset, liability, and equity accounts)

What to remember: These statements are very important, but they don't tell the whole picture. Make sure that when you go to analyze the business's financials in depth that you have enough to see the whole picture.

Website Design

Design for a website can be very individualized. While we are allowed are individual taste (and a site should be unique to a company and its specific scenario), there are some rules to follow. Now these rules are really more like guidelines and really these guidelines are more like current trends, but they can definitely help give some direction when updating or designing a new site.

What are these rules/guidelines/trends?

• Clean and Minimal: Don't clutter up the site with excess images or content and focus on making it user-friendly.
• Illustrations: Instead of pictures you have drawings. This is a great way to add a bespoke feel to the site and there are many programs that make it possible for anyone to create great illustrations. Currently I'm using a combination of Snagit (by Techsmith) and a site called Canva.
• Scrolling One Page Sites: This has been very popular recently and does tend to make a site easier to navigate (i.e. it's user-friendly). This style typically has different sections as you scroll, which can be great for telling the story and drawing people in.
• Video: More and more people are starting to search YouTube before they search Google. There are a lot of theories as to why, but, regardless, more and more people are looking for video instead of just text and image based content. The great thing about video is that you typically get a description as well as the visual. This tends to be more engaging to the average person. Also, seeing a skill performed tends to help people more than just reading about it.

Now, this list is in no way exhaustive, rather it's merely a list to help get you started and to provide some food for thought.

What to remember: A website does need to be unique and specific to a company's scenario. However, a website is simply a tool that needs to be available and can be updated after going live. Therefore, don't worry too much over the small details and the mistakes that are bound to happen (they can be fixed later).

Cost of Debt

This is essentially the amount of interest a company pays on debt in a given year expressed as a percentage rate.

The formula:
Total Interest for the Year / The Total Amount of Debt = Cost of Debt

Why is this important? This is helpful in that it gives you an idea of how much overall risk that has been taken on by the company. Of course it's possible to break down all the numbers and have a much more in depth report, but this, at a glance, gives a quick number on a. is the company healthy (this is obviously just part of that) and b. of course the risk level. When there is so much going on, having one number to look at (that acts almost like an alert) can be very useful.

What to remember: Numbers can drive you crazy and every company has seasons, so look at this in the context of both the season you're in and in the overall financial picture.

Just a Few Tips

I definitely don't remember everything that I read. Now, I typically remember that I read/saw it somewhere the next time that I see it. However, reminders tend to help me, so I thought that, while we've passed on these tips before, I would write them up again and hopefully spark some old memories.

The Tips:

• Keep accurate records and do soon as soon as possible. i.e. don't wait to record things.
• File your receipts (preferably in a digital format and backed up off-site).
• Make sure that you're collecting the appropriate taxes and that your tax rates are up to date.
• Make sure that invoices are accurate, updated, and sent out on time.
• Schedule a time to review the Profit and Loss statement (actually put this on the calendar) on a monthly, quarterly, and yearly basis. The P & L statement is great way to check in on the health of the company.

What to remember: It's easy to forget things, so for those important ideas, write them down and either set a reminder to review them regularly or, better yet, put them in a place that you'll see them every day.

Keeping Customers Up to Date

Business is busy. There's always something happening whether it's issues to deal with or just day to day operations. Because things are busy we don't always have time to communicate the way that we would like and that's where a website and social media come into to play.

What does this look like?

• Blog: While this, in most cases, is helpful content, it can also be used to help keep customers up to date on what is going on with the business. i.e. new products, alerts, notifications about events, etc.
• Alert function (on the website):
Even if you don't have some special module to alert customers, code or content can be easily added to a website (especially with all these website builder sites). This is a great way to let customers know what's happening during events and emergencies.
• Social Media:
Much like the alert function on a website, this is another way to let customers know what's happening with the company. It's also a great way to pass on information to both customers and potential customers.
• Email: With so many great systems out there, keeping customers up to date via email is incredibly easy. This is a great place to send out more detailed and/or varied information about products, updates, events, etc.

What to remember: Test the methods available to you and and remember that just becuase other businesses are using a certain method doesn't mean that it's appropriate for your particular situation.

Depreciation

This, in an overly simplistic definition, is the process that companies use to spread or allocate the cost of a physical asset over its useful life. There are multiple methods of depreciation and this will determine a lot about how the "books" look and how many years of depreciation are used.

What does this look like? Management will need to determine what method is appropriate, the useful life of the asset itself, and assign a scrap/salvage value. The common methods used for calculating depreciation are:

• Straight-line: the expense amount is the same every year during the assets useful years.
• Sum-of-the-years-digits: the amount of expense declines year by year.
• Double-declining balance: this is essentially straight-Line multiplied by 2.
• Units of production: the expense will change year to year based on the number of units produced or hours used.

What to remember: Every company will need to choose the way that best suits their needs and objectives. i.e do your research and talk to your CPA.

Should you encourage the use of debit/credit cards?

To some companies it would be unheard of to ask this question, but to others it's a different story entirely. Being able to process credit and debit cards does have its benefits and draw backs. For the team here at Dataweld, processing cards is just a fact of doing business regardless of the cost we may incur. Whatever your viewpoint on this topic, today I want to offer a reason why being able to processes a customer's card is an invaluable service (at least for us...).

Efficiency:
I can't yell through writing, but that's what I would be doing right now. If you have any kind of recurring invoice (especially ones where the amount remains the same), then your customer should be able to pay with a credit or debit card. They should also be able to do this without you being involved and prefereably with them only having to take the time to setup the initial autodraft.

Here's why I feel so strongly about this:

• Why do the work of processing payments and taking and depositing checks to the bank when a computer can do it for you?
• Autodraft means that you get paid immediately.
• You don't have to send the invoice (at least not the paper one).
• Less time spent reminding customers that their invoice is due.
• and less time overall spent on this task.

What to remember: We're all very busy, so if you're looking for a way to streamline operations we would strongly suggest starting here.

Websites: Calls to action

Websites are great. However, if no one ever uses the site then is it really a good tool for the business? I would definitely say no, but I would add to that answer that if your site is stagnating then it needs to be re-evaluated and re-tooled so that it becomes beneficial to the company.

What does this look like?

• Look at your Calls to Action. If you wouldn't click on them, then a potential customer will probably feel the same way.
• Update the look as well as the content of the site to be more relevant.
• Start adding new content on a regular basis.

There's much more to this topic, but these basic ideas should help to get you moving in the right direction.

What to remember: You can agonize over the site, scrutinizing why things aren't working properly. The better option, simply put, is if something isn't working then remove it and try something new. Don't be paralyzed by indecision.

Common Accounting Mistakes: Part 2

Failing to use a budget: If you don't have a budget, then you should start creating one today. I'm not trying to be cliche, but if you fail to plan then you plan to fail. Leaders have said for a long time that businesses do better when there's a plan for the money. Can you get by without a budget? Sure, you can also continue to not change the oil in your vehicle and hope that nothing goes wrong... Regardless, if you know where the money needs to go and have that "written" down, then there's less of chance of something being left off, out, or forgotten. If for no other reason, there's a simple fact that "writing" something down tends to make a person/company much more likely to remember, stay on track, and follow through.

Why is this important?

• Forecasting
• Planning for emergencies
• Helps to keep you from spending money that isn't there
• It brings insights into spending habits
• and possibly a little peace of mind

What to remember: Having a budget is extremely important, but don't spend too much time on it, get help and advice where needed, and keep it practical so that you'll actually use it.

Making Plans

I've read a lot about Warren Buffett, and there's one quote that always sticks out to me which is "you never know who's swimming naked until the tide goes out". I watched someone ask him about this statement and he said it's about being prepared and responsible in your business practices. He went on to explain that a company has to be prepared for when the tide inevitably goes out, because things won't always be great. He also said to remember that things won't always be bad and that during those times we need to be learning how to improve as well as how to make the team and the company stronger. While plans will be different for every company, hopefully this will provide you with some food for thought.

Websites: First Impressions

I've always been told that first impression are extremely important. Therefore, why wouldn't we put the appropriate effort needed into designing a website? In many cases a company's website is there first point of contact, it's that place where the potential customer gets to know a company. Ok, maybe their just looking for a product, but regardless, what someone sees may make the difference in whether or not they make a purchase.

What does this look like? This area is far to large to condense into one short article, but I'll put a few ideas below.

• User Friendliness i.e. if the site is difficult to navigate or confusing in any way, then chances are you've lost or almost lost the sale at this point.
• Aesthetics Not everyone wants to put the time into how their site looks, but this makes a big difference. Some fonts are easier to read than others. Certain colors are "easier" on the eyes. The design also needs to "fit" a company's style. In other words gear the site to your demographic and what appeals to them.
• Functionality Put plainly, the site has to work. Meaning there can't be broken links and missing images or content.

What to remember? Take your site as seriously as you do your products and any other marketing that you do. The site is essentially another employee representing the company 24/7, therefore it better be exactly what it needs to be to win people over. As a side note, you don't have to re-invent the wheel, but you still have to make the site your own.

Happy 4th Of July!

Common Accounting Mistakes: Part 1

Errors of Omission: People forget things and most of the time it's simply because of the fact that it's difficult to keep track of all of the data. There is so much going on in a business's day to day operations that making sure everything is accounted for can be a difficult task.

Errors of Transposition: This is one that we harp on because too many companies continue to try and enter information by hand. Sometimes, you'll need to enter things by hand, I hear you, there has to be some initial entries, but why make an entry by hand if you don't have to? By using a computer you'll save time, and in turn money, as well as you won't be losing money due to human error.

What does this look like? Let the computer work for you. For all intents and purposes, a computer can have unlimited memory and, generally speaking, won't accidentally swap the 0 and 1 when putting in a 10... If you're trying to keep track of barcodes or expensive assets it's better to be able to scan a barcode or, better yet, a transponder than it is to write down that information and hope that you got it correct.

What to remember? We all make mistakes and we all have a lot to learn, so why not use the tools that are available to lighten the load?

Mobile Office?

We've talked a few time about working in a mobile environment. Some people love it while others aren't as excited... regardless, being able to work in a mobile environment has become a necessity for many companies. While I could talk about how this is a great benefit for team members or how it makes a company more agile and efficient, I won't. Instead I'm writing about a couple of tips that can help in creating a mobile work environment. 

So what's needed? While I won't try to cover every possible scenario, I will go over a couple of ideas that can make this transition a little easier. At the end of the day, whether an idea is adopted often comes down to whether or not it was easy and convenient to adopt and/or how user friendly it was.

What to think about:

• Choose the correct device for the environment. Do you need a tablet or just a phone? Depending on what you're trying to accomplish, a larger phone like the iPhone 8 Plus or X could be more than enough screen. On the other hand, if you're trying to do design work or need to have a large amount of information on one screen, then a tablet may be better suited.
• Get the appropriate apps. Having the right apps could be the difference between this working and being completely abandoned. What needs to be considered is how to handle email, contacts (i.e. CRM), remote access to the internal server, expenses, etc. Some of the pre-installed apps may be fine to a degree, but spending a few dollars may be worth it. Many people who use Outlook for their email also use the app, which has its quirks, but is generally good. Of course, Gmail is great and with all the other tools available from Google it's possible to have all your spreadsheets, text documents, and notes in one place for the team to collaborate. Expenses? Using a site like Expensify could streamline that process because it's customizable or a simple spreadsheet can meet your needs.

I could definitely write more about the nuances surrounding why a team would choose a tablet over a smartphone or vice versa (afterall, with wifi calling you can also call on a tablet). I could also go on for awhile about many more apps, but there's simply not enough time. The point here is to do research, ask questions, to be open to new ways of operating, and to always be thinking of how you can help the team be more collaborative, efficient, and effective.

June 29, 2018/ James Mantrozos/

James Mantrozos