Thaney CPA | Accounting Services Rochester, NY

Posts Tagged ‘business survival’

How To Improve Your Credit Score

The days of easy credit, offered to anyone who can breathe, are history. In this sluggish economy, lenders want to know whether borrowers are likely to stay current on their loans, mortgages, and credit card accounts. Banks and other lending institutions are looking more closely at credit scores, the numbers that (in theory at least) predict the likelihood that a borrower will default on his or her outstanding debts. As a result, knowing your score and ensuring that it’s climbing toward the upper percentiles should be a part of your regular financial planning.

The most commonly used credit score is the FICO, developed by Fair Isaac Corporation. FICO scores range from a low of 300 to a high of 850 and may be obtained (for a fee) at myfico.com. The score is considered a predictor: the higher the score, the more creditworthy the consumer. Not so long ago, a score that just nudged the 700 mark would bring lenders to the table with their lowest interest rates. Over the last few years, however, higher scores are often required to get premium rates.

About 35% of the FICO score is derived from your payment history, and another 15% comes from the length of that history. Ten percent of the score is based on the types of credit you use—credit cards, retail accounts, and other types of loans. Another 30% takes into account the amounts you owe as a fraction of your available credit. These numbers and others are fed into the FICO calculator to determine your overall score.

To raise that score, focus on the numbers that matter most:

Avoid late payments.

If you must juggle payments because of cash flow problems, try to limit the number of past-due accounts. A history of late payments on several accounts will hurt your score more than delinquencies on a single account.

Mix it up.

Spread your debt over several types of accounts: installment loans, credit cards, and accounts with retail merchants.

Curb spending.

Keep your outstanding balances to less than 50% of your available credit.

Check your credit report regularly.

By law, you’re entitled to a free annual credit report from the three main credit-reporting agencies. Check the report for errors, and follow up to ensure that problems get fixed. One vendor’s erroneous reporting can tank your score.

Good credit is a valuable commodity. Guard it carefully.

Are All Your Business Eggs In One Basket?

Many small business owners share one problem, especially in their early days. It’s being over-reliant on a single customer or supplier for much of their business. If you’re in that position, your business is operating with higher risk. Just as with investments, you don’t want all your eggs in one basket. Your goal should be a well-diversified portfolio of customers and suppliers. (more…)

Protecting Your Most Important Assets – Intellectual Property Rights

When you think about protecting company assets, several things probably come straight to mind, such as land, buildings, machinery, inventory and vehicles. In many instances companies overlook their intellectual property, which can be one of their most valuable assets. By understanding the different types of intellectual property and how they can be protected against infringement you can help your business stay ahead of the competition. (more…)

Protecting Your Business With Credit Policies And Procedures

If you were in the money lending business would you hand over money to people without arranging a repayment contract with them? It doesn’t sound too smart, but most businesses are in the money lending business in just this way. In effect, by offering credit to your customers, you are providing them with a loan. Companies that lack sound credit policies and procedures take unnecessary risks and can jeopardize their very existence. (more…)

The Next Great Wave of Innovation – Succeeding Through Turmoil

How do you see change – as a threat or an opportunity?

Our industries, our society and even our planet are in a state of flux as we struggle to come to terms with turbulent economies, dwindling resources and a changing climate. In The Sixth Wave, a book on business and innovation, authors Moody and Nogrady predict that we are on the cusp of the next great wave of change for the future. They also demonstrate that periods of change in history have always been the time when the greatest opportunities exist for the introduction of new technologies, new products and services, and for inspired ideas about whole new ways of doing things. (more…)

Our Top 10 Cash Flow Tips

1. Know your business’ balance sheet thoroughly. This may sound obvious, but, as your accountant can confirm, many business people don’t know how cash flow works and its significance to keeping their operation afloat. (more…)

The Business Plan – Roadmap to Success webinar

The Business Plan – Roadmap to Success Most business don’t plan to fail – they simply fail to plan

A well developed business plan helps an owner/manager to focus on future business success and assists them in harnessing all the necessary resources to achieve that success.

It is a well documented observation that most businesses do not plan to fail – they simply fail to plan. Having the ‘hows and whys’ of their business documented provides a powerful focus to help them achieve success. It also provides a monitoring tool to measure progress towards goals.

A further importance is that banks, governments and business partners are increasingly requiring business plans to support their decisions relating to lending and providing financial assistance.

Accountants and business advisers are not only the natural partners to assist business owners to create their plan but also the best people to work with them in ongoing implementation, the creating of financial forecasts and the monitoring/reporting of results.

Time: 1PM-2PM ET Price: No-cost

Dates:

2010-05-27| Click to Register

Small Business Healthcare Tax Credit

There has been a lot of interest on who qualifies and how much of a credit the Small Business Health Tax Credit will provide. Our own Daniel Nitschke, CPA took the challenge to figure out this elusive credit and how it can be utilized by our clients. (more…)

Cyber Security – Protecting Yourself from the Latest Risks

Although rapidly changing information technology delivers countless benefits, it also brings new security risks that can harm businesses that are not prepared. We mostly hear about security breaches and attacks against large corporations and government departments, but small to medium businesses are just as vulnerable and face similar IT security risks. There are a number of preventive steps organizations can take to increase their cyber security in a rapidly changing world. The key is to know the threats and be prepared to deal with them. (more…)

Family Business Transition Dilemma – Who Gets The Baton?

Family business transition planning is frequently predicated on the assumption that someday the parents will be passing on the baton to one (or several) of their own children. What more satisfactory way of crowning their lifelong efforts and hard won success than to pass on the legacy to their own kin so they too can continue to enjoy and prosper from it. (more…)