Admin Books Newsletter
Running a small business is fraught with challenges. Admin Books partners with business owners to provide financial and bookkeeping services through our team approach. Our goal is to free you to focus on growing and managing your company. The purpose of this e-zine is to provide our clients, associates and friends with valuable tools to manage their business. Enjoy! Renee
What is Your Plan to Exit Your Business?
Are you beginning to think of a time beyond business ownership? Don't have a clear vision of how to "leave your business in style?" So what do you do?
You are not alone. A majority of closely held and family owned businesses will change hands within the next five years. However, many Business Owners have not have taken active steps to plan a transition out of ownership.
Exit Planning is a structured process that provides business owners a roadmap to help them leave their business when they want, for the cash they need and to the successor they choose. Without a plan, owners risk leaving a lot on the table: a lot of money, time and peace of mind.
What does it take to create an Exit Plan?
- Understand that there is a proven Exit Planning process.
- Commit to see the process through.
- Document your decisions and create a written plan and checklist
- Engage your team of professional advisors to help see you through the process.
Creating and implementing your Exit Plan may be the most important business and financial event of your life.
Unbiased information you need to know about Business Exit Planning contributed by Eric Nielsen at Sunbelt Business Advisors. Contact him for additional information at enielsen@sunbeltbayarea.netor 408-436-1900 ext 110.
Financial Statements & The Instrument Panel
When flying in the dark or clouds, how does a pilot reach his destination? He relies on his instrument panel to navigate the aircraft when there are no visual cues. The same is true for business. How does a company know where it is going? By relying on financial statements to state where they are and where they are headed. 
Financial statements are the CEO’s instruments. Like a captain reads the instruments on the aircraft to navigate, so must business owners read their “financial indicators” in order to know where they are. The owner must know the purpose of financial statements, how they work, and what they mean.
In my years of working with business owners, I have found that many do not look at a profit and loss statement. Maybe you do look at the statement, but do you know how to interpret the numbers? And on the balance sheet, do you know your net worth? If you sold all your assets, could you pay off all your debts? If you are a serious CEO, you must be able to read your instruments—your financial statements.
Can you imagine running a business and not knowing how to read a financial statement? Don’t be embarrassed; ask. It is important to understand for the stability of the company. Once business owners and managers can read the financial statements, they can make intelligent decisions.
Owners have come to me from all industry types. Some owners have no system of recording their income or expenses. Other owners have used Excel or tried to use QuickBooks but have given up. Some other CEOs have financial statements, but they are pages long and fraught with scattered and unreliable numbers.
Fighter pilots have instruments that show situation awareness. But with so many instruments, lights, and buttons to oversee, it can be too much when a pilot is in a critical situation. Fighter pilots just need to know the status of the enemy, status of the aircraft, or status of their weapons. Their instruments have combined screens to keep things simpler for the pilot. So too can CEOs have information overload. I recommend when this happens that owners clean their desk and make a to-do list. A clean desk and a list of priorities can give peace of mind.
Following is a profit and loss statement that shows income and expenses. Skim it and see what you conclude about this business.
How does this statement compare to your own profit-andloss (income-and-expense) statement? Make sure your statement is one page or less. Anything more indicates unnecessary accounts. Make sure all bank and credit card accounts are reconciled, checking for transpositions, omissions and duplications. What you call a deduction will deem how it is taxed. Make sure your transactions are placed in the correct account/category.
Robert Kiyosaki, a well-known investor, entrepreneur and educator, consistently speaks on the importance of financial literacy. He says numbers on financial statements tell a story. He explains that most people can read, but the comprehension level is different for everyone. If you are struggling, you need to get back to basics—reading and understanding financial statements.
1. Print out your profit & loss statement for the current year. Write down: 
Total Income: __________________
Total Expenses: __________________
Profit/Loss: __________________
In which category or categories are you overspending?
2. Are your financial statements reliable, accurate and up-to-date?
3. Rate your knowledge on understanding how to read financial statements (1 = poor; 2 = fair; 3 = average; 4 = above average; 5 = expert)
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Deadline Reminders: 
Sales Tax Prepayment due November 24th.
1099's due February 1, 2010.
Sales Tax Quarterly Report due February 1, 2010.
Payroll Quarterly Reports due February 1, 2010.
1096's due March 1, 2010.
Corporate Tax deadline is March 15, 2010.
Networking Opportunities: 
Jubilee CEO Meeting: Saturday, November 21st from 9:30-11:30am in San Jose. Cost $12 but FREE for 1st time visitors! Topic: Social Media - come hear Patrick Schwerdtfeger!! RSVP to 408-262-0900 ext. 317 or Click Here!
Upcoming Webinars:
Admin Books is offering 12 webinars that will provide you confidence and clarifications on how to run your business successfully. Choose the topic that you most struggle with or select a group of them. These one hour interactive webinars will be held every other Wednesday from 9:30am - 10:30am PST. And, the cost is only $39 each. If you bundle 5 webinars, you get the 6th one FREE!
Entering HUD Statements for Real Estate Investors - November 4
Does your balance sheet reflect your assets and liabilities correctly? This class will teach you step by step on how to record investment property, mortgage loans, security deposits, closing costs, escrow deposits, PITI, taxes paid in escrow and much more! - Click Here To Register
Processing 1099's - November 18
Setting up vendors, mapping accounts, processing, printing, mailing forms and getting 1099's and 1096's for FREE! - Click Here To Register
End of the Year Checklist - December 2
What do you need to do before the year ends to clean up your QuickBooks file, manage your business and get ready for a tax return? We'll review the 27 item checklist of all you need to know! - Click Here To Register
We have recorded webinars that cover the following topics: Tracking Income, Managing Expenses, Reconciling, QB File Set-up & Maintenance, Customizing QB, Creating Reports & Financial Statements, and Chart of Accounts, How to Read Financial Statements, and Sales Tax Tips.
W-e 
E-ncourage
B-usiness Owners
I-n
N-eed Of
A-ccurate
R-ecords!
Quotable Quote:
“Without vision, the people perish.”
~Proverbs 29:48
Free Stuff: I want to make sure you are aware of several items of value that you can take advantage of compliments of Admin Books. Go to my website to get:
- FREE business quiz
- Audio on personal finances
- Business blog
- Mileage Log
- Records Retention Guide
- 30 minute consultation for perspective clients
As a business owner, you're the pilot who ensures the business takes off and lands successfully. Are you flying by the seat of your pants or do you have a flight plan? Read my book, "Your Financial Flight Plan: Pilot Your Business To Profitability. Check out your copy at: YourFinancialFlightPlan.com
The book is also available at Amazon.com, Barnes & Noble and BookSmart in Morgan Hill!
Are Your Books In Order?
What is the status of your bookkeeping??
Are you current??
Are your books accurate??
Admin Books can assist you with:
- Data Entry
- Reconciliation
- Payroll Processing
- Sales Tax Reports
- Workers Comp Reports
- Job Costing
- Private Consultations
- Financial Coaching
- QB File Clean Up
Call our office to confirm our services match your business needs!
Best Regards,
408-782-9640
