Getting There - Overcoming Challenges To Achieving Goals And Objectives

There Are Many Paths To The Same Destination

Life happens when you’re busy making other plans. Because of this, challenges will at some point prevent goals or objectives from being completed in time. Effective management involves staying informed of the current state of the work being done and having potential courses of action in mind before they’re necessary. Here are several things to consider to keep your tasks and projects under control:

Review Goals and Objectives

There are times when our ambitions simply exceed our abilities and, no matter how much we wish to rise to the occasion, the goal is simply too high. Other times we haven’t prioritized what we really need to accomplish properly and are doing more work than is necessary. When setting goals and objectives, it is extremely valuable to determine exactly what is needed and why; however, the reality is that sometimes we may not realize these things until we’ve actually started working on a task. This is why it’s important to take some time to review goals and objectives after starting a task to see if the work that’s being done is equally important. This may result in prioritizing certain portions, changing the order of operations, or excluding steps or objectives because they’re less important or relevant to the final outcome. When doing this, a difficult choice must often be made to prioritize a short term objective while making a long term one more complicated. If these decisions are made lightly, it’s almost always a guarantee that it will be necessary again. To avoid this, make sure this is strongly considered at the time of the decision and, if a shift is made, make sure to schedule time for the long term issues soon after the short term deadlines are met.

Adjust Resources

When working on team projects, we often make allocations of resources based on the expense of an individual or tool. While this can make sense, it should always consider the productivity compared to the expense. Conversely, a cheaper resource may end up costing more for the amount of work done, but they may have more capacity than the more expensive resource. There may also be instances where a more expensive resource can be used to train a less experienced person on specific and limited tasks and to then check their work. Not only does this reduce issues of overworking your experienced people, but it also provides valuable experience to others on the team.

Training and/or Research

Most people are creatures of habit and will do what they know until they’re forced to do things differently. Others, however, strongly believe that “you don’t know what you don’t know” is a challenge to seek out more knowledge to find better ways to do things. These are the people who will get training to learn better techniques or more effective tools to use. Many of these will seek out solutions on their own so they can improve their effectiveness. If there are problems in the middle of a project, it sometimes makes sense to take one step back to be able to take two or three steps forward rather than plodding ahead at the same pace. This may seem like a waste of time while under pressure, but is often the necessary step to solving problems.

Technology

Technology has changed and will continue to change how much work one person is capable of doing. If your work involves repetitive tasks, there is almost always a tool to help do it faster and possibly better. A real world example where our company used technology to solve a problem: we took on a client who hadn’t done accounting in several years, but needed old bank records added to their accounting software. Past years couldn’t be imported from the bank into the software directly, but the bank statements were available. Rather than typing each entry in by hand, we scanned the documents and used software to read the text and numbers and write them into a spreadsheet as a single column of data. We then used formulas and macros to split the copied data into multiple rows and columns that the accounting software could read. This turned a job that would have taken multiple people over a week to complete into something a single person could do in several hours. Avoiding manual entry also increased the accuracy and allowed us to put checks in place to compare to the original records before importing them into the accounting software.

External resources

Sometimes it becomes necessary to bring in outside resources to complete a task on time. Perhaps it’s because some of your resources aren’t as available. Other times it’s because there’s a lack of the right knowledge or capabilities without enough time to learn them. Whatever the reason, there are usually options to bring in outside resources to supplement your team. While the cost of doing this may seem prohibitive, most experienced business leaders consider the cost of not doing so. This could be penalties or fines for not completing something on time or could be the loss of trust of a client as well as damage to the brand that prevents existing clients from staying or new clients from signing on. The other value of bringing in external resources is that they may provide ideas or skills that can be applied to your existing operations in the future.

While challenges can disrupt even the best planned projects or most routine tasks, knowing how to handle or navigate challenges can minimize those disruptions and solve problems.

- John Thrush

Don’t Panic! Filing an extension if you’re self-employed or own a single member LLC

Don’t Panic! You Can Get More Time To File Your Taxes!

The tax deadline for 2023 taxes is Monday, April 15th. If you haven’t gotten around to filing and think you’ll just pop by a tax preparer this weekend, don’t be surprised if they can’t help. If you do them yourself and expect to file them at 11:59pm that night, maybe it’s a better idea to file an extension so you can relax a bit and not make any careless mistakes.

Filing an extension is not cheating or a failure, it’s a way to make sure you complete your taxes right the first time. And the fact is many small businesses and self-employed people file extensions simply because they don’t get all of the information they need from other people in time to complete their taxes before the deadline. Filing for an extension gives you 6 additional months, which should be plenty of time.

Remember that asking for an extension doesn’t mean you get an extension on the time to pay. This means you need to estimate how much you think you’ll owe and then make that payment by April 15th. If you don’t know how much it’ll be and haven’t made any estimated payments throughout the year, you may want to look at past tax returns to see how much tax was due and see if that’s manageable. If you don't pay enough, however, you'll owe interest and potentially other penalties for not paying on time. If you pay more than is actually due, you can get a refund on the excess that you paid or you can apply it to next year’s taxes, reducing the amount you pay in estimated payments. This is why it might be a good idea to pay more than you expect.

How to file an extension:

Most tax software programs allow you to file your extension online or print out the form to mail. You can make a payment online with the IRS at https://www.irs.gov/payments using your bank account, debit card, credit card, etc. If you don’t already have an account set up with the IRS, you can use information from a prior tax return to verify yourself. 

If you’re having trouble paying online, it’s often easier to fill out the extension form from the IRS to print and send a physical check in the mail. It’s usually a good idea to send that using Certified Mail so you have verification that you sent it on time. If they ever claim you didn’t file your extension, sending that receipt as well as the USPS information on when it was delivered will generally resolve any issues or penalties for not filing an extension.

Some states will automatically consider an extension filed with the IRS as an extension for the state as well; however, you should probably check with your state to make sure. Alternatively you can manually file an extension with the state. This is an especially good idea if you’re going to make a tax payment.

What about business extensions?

If you have a sole proprietorship or have a single owner LLC, filing your extension for your personal taxes includes the extension for the business. If you have multiple LLCs and are the only owner of each one, all of those businesses are covered as well.

What If you have an S-Corp? The bad news is that you’re already late. S-Corp taxes or extensions were due March 15, 2024. If you haven’t filed your taxes yet, the best option is to get them filed as soon as possible as “the failure-to-file penalty is usually five percent of the tax owed for each month, or part of a month that your return is late, up to a maximum of 25%”. States have their own late filing penalties as well, so it’s best to check on them.

What’s next?

If 2023 is the first year you’re filing taxes while self-employed or as a business owner, you may have a lot of questions. What is the line between business and personal? What can be deducted as business expenses? What can’t be deducted? How should certain expenses be classified? Can you deduct your car or apartment or house? If you have these questions, reach out to Brightleaf and we’ll work with you to give you answers. We’ll also work with you to make your 2024 taxes much easier and faster to file while also helping you look at the finances so you can make better decisions for your business. We can also share ways to reduce the amount of taxes you pay while putting more money away for your future. You’re good at what you do and want to help your clients… and we’re good at accounting and helping businesses grow and succeed.

- John Thrush

“Why should I buy from you?” - Crafting a unique value proposition for your business

Attracting Customers Is Easier When Your Company Has A Clearly Defined Value Proposition

A value proposition is a concise statement or description that communicates the unique benefits and value that a company provides to its customers. A strong value proposition effectively captures the essence of what sets a company apart and why customers should do business with it. 

A value proposition is crucial because it:

• Defines Competitive Advantage by articulating what sets the company apart from competitors and why customers should choose its products or services over alternatives.

• Guides Product/Service Development by meeting the specific wants and needs of the target audience.

• Informs Marketing Strategy by serving as the foundation for marketing and messaging, ensuring consistency and effectiveness in reaching the right audience with the right message.

• Differentiates Brand Identity by highlighting unique selling points and core values that resonate with the target audience.

• Attracts Customers by communicating the benefits and solutions offered by the company to potential customers.

• Retains Customers by delivering on the promises to build trust and loyalty among customers.

Do you know what your company’s value proposition is? What is it that your company provides to customers? And how is what your company provides different from your competitors?

If you don’t have an answer that you can state simply and clearly, use the following questions to see if they help:

• What needs are being satisfied by your products or services?

• What problems are being solved by your products or services?

• Why or how do customers benefit from what your company provides?

• How and why are decision makers convinced this is the best option?

• What value is being offered and what is being delivered?

• What does your company do better than the others?

• What do customers get more of from your company than from the competition?

If you’re unable to answer these questions, you may not understand your customers or your business as well as you think you do. A well-defined value proposition is essential for positioning a company effectively in the market, attracting and retaining customers, and driving sustainable business growth. It makes decision making easier and brings clarity to strategic planning.

Brightleaf Consulting Group has been helping our clients understand what value they bring to their clients for 15 years. If you want to learn more about how your company can compete more effectively and grow strategically, reach out and let’s see how we can help.

- John Thrush

Protecting Your Business: Five Common Types of Fraud and How to Safeguard Against Them

Fraud poses a significant threat to businesses of all sizes, but small businesses are particularly vulnerable due to their limited resources and sometimes less sophisticated internal controls. The Association of Certified Fraud Examiners (ACFE) found in their 2024 Report that businesses with fewer than 100 employees had an annual median loss to fraud of $141,000 while businesses with more than 1,000 employees had a median loss of only $102,000. A major reason for this is that smaller businesses don’t have the same controls and procedures in place to protect themselves.

The first step to protecting your company is understanding the common types of fraud targeting small businesses. Here are five major kinds of fraud experienced by small businesses as well as some strategies to keep your company safe:

Phishing and Cyber Fraud

Phishing attacks target small businesses through deceptive emails, texts, or phone calls designed to trick employees into revealing sensitive information such as login credentials or even financial data. Cyber fraudsters may also use malware to compromise business systems and steal data or commit financial fraud. To protect against phishing and cyber fraud:

• Educate your staff about the dangers of phishing attacks and provide training on how to recognize and report suspicious emails or messages.

• Implement cybersecurity measures such as firewalls, antivirus software, and encryption to protect against malware and unauthorized access.

• Regularly update software and systems to patch known vulnerabilities and reduce the risk of exploitation by cybercriminals.

Payment Fraud

Payment fraud involves criminals using counterfeit or stolen checks, credit cards, or online payment accounts to make unauthorized purchases or withdrawals. Small businesses are often targeted because they may have less stringent verification processes in place. To prevent check and credit card fraud:

• Verify customer identity by requesting photo identification for large transactions or purchases made with checks or credit cards.

• Use secure payment processing systems that encrypt sensitive cardholder data and comply with Payment Card Industry Data Security Standards (PCI DSS).

• Train employees to recognize common signs of fraudulent transactions, such as unusual purchasing patterns or mismatched signatures.

Identity Theft

Identity theft occurs when criminals steal personal or financial information to impersonate individuals or businesses for fraudulent purposes. This can involve opening fraudulent accounts, applying for loans or credit cards, or filing false tax returns. To safeguard against identity theft:

• Limit collection and retention of sensitive customer information to minimize the risk of data breaches.

• Securely store and dispose of physical and electronic records containing personal or financial data, such as shredding documents and using encryption for digital files.

• Monitor credit reports and bank statements regularly for suspicious activity and report any unauthorized transactions or accounts to the appropriate authorities.

Billing Fraud

Billing fraud occurs when external parties or even employees manipulate billing processes to siphon off funds from the business. This can involve creating fictitious invoices, altering existing invoices, or redirecting payments to personal accounts. To combat billing fraud:

• Segregate duties to ensure that different individuals are responsible for creating, approving, and paying invoices.

• Conduct regular reviews of vendor accounts and invoices to detect any irregularities.

• Use accounting software with built-in controls such as approval workflows and audit trails to monitor billing activities.

Employee Theft

Employee theft involves employees misappropriating company assets for personal gain. This could include stealing cash or inventory, but could also mean using intellectual property or engaging in fraudulent expense reimbursement schemes. To mitigate the risk of employee theft:

• Screen job candidates thoroughly before hiring and conduct background checks, especially for positions involving access to sensitive financial information.

• Implement clear policies and procedures regarding acceptable use of company resources and conduct regular training sessions to reinforce ethical behavior.

• Keep track of inventory using surveillance cameras, access controls, and periodic inventory checks.

• Restrict access to sensitive information and intellectual property such as trade secrets

By understanding what kinds of fraud can occur and implementing controls and proactive measures to prevent and detect fraudulent activity, businesses can minimize their risk exposure and protect their assets. If you need help creating controls and organizing your accounting systems to help detect and prevent fraud, the team at Brightleaf Consulting Group has over 20 years of experience in putting accounting controls in place for small businesses of all types. Reach out and let us help keep your company on track.

- John Thrush