It’s smart to take the time to identify key records, make copies, and find a secure place to store them. Here are some suggestions to get you started.

• You don’t need to copy every tax and financial record. Your banks, credit card companies, and investment brokerages will have records of your accounts and can probably supply details of recent transactions if needed. Your employer will have current payroll records, and IRA or 401(k) plan trustees will have details of your accounts.
• Keep a master list of all account numbers, with a contact phone number for each. That will make it easier to recover information after a disaster. If you handle transactions online, include your user ID and passwords.
• Keep copies documenting the purchase of your home or investment properties. Also keep records of expenses for remodels or other improvements that change your cost basis in the property.
• Your broker should have details of your original investments in stocks or bonds, but copy details of any investments you purchased independently. That includes numbers of U.S. savings bonds that you own.
• Make sure your will and estate planning documents are stored safely, either at your lawyer’s office or in another secure place.
• Consider keeping copies of your last three years’ tax returns, even if your tax preparer has duplicates. And finally, include a recent backup disk from your home computer.

The best place to store your records depends on a number of factors. A bank safe deposit box should protect against most disasters. Sometimes a fireproof home safe is sufficient. Wherever you decide to keep your records, take the time to prepare now.

This configuration offers several advantages in the right business environment. Let’s examine the benefits and what to consider when determining if thin client computing is right for your business.

The environmental friendliness and energy efficiency of thin computing has become more important as companies look for ways of decreasing environmental impacts. A thin client terminal uses from between 6 and 50 watts, compared with 150 to 350 watts used by a PC. One study of a conversion of PCs to thin client terminals, including the required server and cooling infrastructure, showed a 24 percent reduction in power use with a corresponding 23 percent reduction in CO2 emissions.

Thin clients have been shown to outlast PCs and laptops by at least three years. Besides lowering costs, this means that thin client terminals require fewer resources to manufacture. Without the hard drives and other parts, thin client terminals involve less hazardous materials to produce, less packaging during transport and create less waste when discarded.

Thin client computing provides enhanced security and reliability. With data and applications stored on a backed up data centre server, there is no security problem if a terminal is lost, damaged or stolen. In the event of a natural disaster, business continuity is assured because the data and applications are located offsite in a secure location. In industrial environments, with dust and other contaminants or lack of space, thin client terminals can be ideal.

With processing carried out by the server, thin client computing is more manageable. There are fewer things that can go wrong, and viruses and malware aren’t a problem when you don’t have separate hard drives throughout the business. The simplicity of thin client terminals makes it easier to diagnose and fix problems. It also makes installation quicker and easier compared to PC-based computing.

The range of benefits of thin client computing translates into a lower total cost of ownership. A study by consulting firm Gartner, comparing the total cost of ownership between PC-based and thin computing, found annual savings of up to:

• 34 percent lower maintenance cost
• 79 percent less downtime cost per user
• 6 percent capital cost savings
• 19 percent lower operating cost
• 48 percent lower overall cost of ownership

Although the benefits can be substantial, you need to consider your computing environment and the potential shortcomings of thin client computing.

If you use computing intensive applications, such as video editing and CAD, thin client computing is not suitable because it can be too slow. Thin client computing is also constrained by connectivity. If the server goes down, users cannot access basic applications such as word processing, databases and spreadsheets.

Employees who are accustomed to PCs will lose their personalized configuration and control with a thin client terminal. Not having access to downloads, plugins and other personal applications might be good for the business, but can decrease employee satisfaction.

Before you make a decision you also need to look at how your computers are used. Thin client computing is ideal for environments where many users need to perform similar tasks. If your computing needs are diverse and complex, thin client computing will not be suitable.

It’s best to seek the opinion of an IT specialist who can help you analyze your needs and the potential benefits to determine if thin client computing is the right choice for your business.

2.  Set up a cash flow budget. You need to focus on forward planning to generate a “best guess” about likely future sales and expenses. There are some cash flow software tools around, but you can also set up your own program in Excel.  If you’re not familiar and skilled with Excel software, ask your accountant for help to set it up properly initially. They can also help you select suitable cash flow software.

3.  Review and update cash flow budgets regularly. It’s your best insurance against potential cash shortages. If your business has a predictable cash flow, then cash flow budgeting on a quarterly basis is often enough. If you’re already visiting your accountant for other tax related matters, then you can get a cash flow budget prepared at the same time. The rule of thumb is that the greater the cash flow uncertainty a business faces, the more often a new cash flow budget should be prepared.

If cash is really tight, you might need to move to weekly projections, and decide which invoices you’ll pay and whom you need to get payment from as soon as possible. Watch bank balances and make sure you don’t have checks sitting on a desk waiting to be deposited. This can be time consuming, but you won’t be the first business that has had to do that from time to time.

Rapid growth sounds good but, ironically, too much of this good thing can bring on a cash crunch – which takes many business owners by surprise. A sudden spurt in sales is often accompanied by a run down in stock in-hand and debtors not being tracked or followed up when they go overdue. Strong sales one month often means a cash shortage next month. By monitoring the business’ cash status you can arrange credit from suppliers and banks to cover the temporary shortfalls. However, these arrangements take time to set up so you need to be prepared in advance.

4.  Set your credit terms carefully. If the nature of your business requires offering credit, then it is important to set clear limits to your terms of credit.

5.  Get payments in quickly. Master the art of debtor management. Let debtors know how much time remains before due dates. Stay in close touch with major debtors as payment deadlines approach. Offer small discounts for early payment as an incentive.

6.  Pay your creditors strategically. Take advantage of credit terms and prioritize payments according to the consequences involved in going overdue. Wages, taxes and direct debits are at the top of the list for on-time payment; key suppliers may be prepared to wait a while to keep your business. Don’t pay early just to get a discounted price unless getting the discount is better than being without the cash.

7.  Plan for the lumps. Be aware of when lean cash flow patches are coming up and plan accordingly. Avoid funding major purchases from your business’ working capital unless you are sure you have the cash to cover it.

8.  Get finance products working to your benefit. Overdrafts, premium funding, lease facilities and cash flow funding products can all be excellent tools to help match a business’ cash supply with planned outlays. Even the business credit card can be a good way to ease the squeeze as long as you are sure the debt can be paid before interest kicks in.

9.  Don’t incur tax and other statutory penalties. Save yourself the money and the stress!

10.  Keep your hands out of the till. Make cash drawings for personal purposes according to conservative cash flow forecasts.

Accurate and consistent records enable you to keep track of your company’s progress. Records show whether sales are up or down, which customers are spending and which are not and whether any changes are needed. Without adequate documentation making reliable business forecasts or looking back to see where you have been successful in the past is considerably more difficult.

Good records are also fundamental to the preparation of those financial statements that are necessary when dealing with banks and creditors and also allow you to access information about your assets, liabilities and equity in your business quickly and systematically.

Small businesses receive money and property from a variety of sources on a regular basis. By using accurate records you can identify where your various receipts come from and separate non-business receipts from taxable income.

A simple but important function of records is to act as a supplement to your memory. For example, tax-deductible expenses may occasionally slip your mind. Without an adequate record keeping system you will not be able to claim deductible outgoings come tax time, a loss which could be particularly detrimental to your business.

Records need to reflect the income, expenditure and credits that you note on your tax return. As a general rule these figures will be the same that you use to monitor your business during the year. Keeping good records throughout the tax year so as not to have to scramble to assemble documents when your return is due also means that you will have accurate figures available for official inspection at all times.

Choose your manner of record keeping based on the type of small business you run and its requirements. If you operate more than one small business make sure that each operation’s record keeping is entirely separate.

Record keeping tips

Daily business records are probably the best type of record since they are usually very comprehensive and allow business owners to identify outgoings and receipts with more precision than if less regular records are kept.

Supporting documents should include invoices, receipts, sales slips and paid bills. If you keep this supporting material in a systematic fashion, perhaps organized into categories, the preparation of good records will be that much easier.

Some detail is required when it comes to supporting documents. If you are a manufacturer or producer, for example, supporting material should show how much you paid for raw products.

One of the most important business aspects that good records reflect is expenditure. Emails, cash register tapes, account statements and invoices are all supporting material which allows you to keep track of outgoings.

A petty cash system is especially useful in this regard. A good petty cash structure allows you to monitor all those easy-to-lose-track-of payments that can amount to quite a significant sum over a year.

Keep track of your assets. Supporting documentation should contain information such as the items’ purchase price and date, the cost of any improvements and how you use the assets in question. These details can be very useful when tax time comes around or if you need to make an estimation of the value of your business.

Record keeping may seem like an unexciting prospect but do it properly and you will save your business a lot of time and money in the long run. Ask your accountant for expert advice on how to implement a good record keeping system.

Variable quality

Inconsistent or unpredictable quality can be linked to either a lack of training, or ineffective training. Other times it is due to variations in components or materials. Profits are always impacted by reworks or rejects. When the cost of labor is added to the cost of materials any product which has to be rejected or reworked represents a loss to the business. The financial losses are not just the losses in materials, but also the lost opportunity cost. Another less measurable outcome is low morale and frustration amongst the team. Both of these de-motivators reduce people productivity.

Poor work flow

If you find the business is experiencing bottlenecks on one hand and periods of lull on the other then that is likely to contribute to low productivity because there is not a consistent flow of work. The best people to identify poor work flow situations and recommend solutions are the people doing the job.

Machine and equipment downtime

Profits cannot be maximized when there is preventable machine and equipment downtime. Underlying causes could involve operator training, maintenance, poor leadership, or outworn and aged machinery and equipment that need replacement. Constant breakdowns produce a powerful negative effect on the workforce. The constant stop/start alone reduces productivity because of interruptions to workflow, not to mention contributing to low morale and frustration.

‘Work-To-Rule’ attitudes

With effective leadership people are motivated to give that little bit extra to the job and the business.  Poor leadership can have the opposite effect.  So if your team seems to be disinclined to go the extra mile, look at the strategies you have in place to lead and motivate them. Situations such as constant breakdowns and poor workflow will also have a negative effect on motivation to perform.

Lack of clear performance expectations

It is a surprising but widespread situation that the majority of people in the workplace often have no idea, or an incorrect idea of what is expected of them. It is vital that people understand how their job contributes to the goals of the business.  They should also understand clearly what you want them to do to contribute to those business goals, and how you will measure whether they are doing their job effectively.

Lack of feedback

People can’t work in a vacuum; we all need to know how we are getting along. The absence of feedback in the workplace also makes the work seem pointless. Most people prefer to feel that what they do has value and contributes to the greater good. Credible feedback and encouragement both from our co-workers and our bosses keeps us engaged in our work. Cultivate a culture of regular and constructive recognition and feedback for effort.