01/ 23/ 2006
The Expert: Michele Jones, Owner, Century Benefits Consulting, San Francisco
I realized how much I needed accounting help when I found a 3-year-old check in the back of a desk drawer. It was payment from a client we didn't even work with anymore, and it was too old to cash. Though it worked fine when I had five clients, my pad-and-pencil system of tracking client billing broke down by the time I reached 60 clients. I knew I needed accounting software; I just didn't have the time to make the switch. But finding a check I couldn't cash was a dollar sign I couldn't ignore.
I recently celebrated my 12th anniversary of being in business for myself. I love what I do, because I work with other small-business owners, clients I can relate to. My company, Century Benefits Consulting, sets up and maintains employee benefit and retirement plans for small businesses.
As small-business owners, something inspires us enough to take the risks associated with business ownership. For me, knowing clients will have secure retirements because of our services is what it’s all about. The bottom line has never motivated me as much as the relationships, which is probably why finding accounting software never ranked high on my to-do list.
But as much as I loved the people part of my job, money was a critical factor. It became a cash flow issue for me: I was working hard, I just couldn't figure out where the money was going.
During my first years in business, I could quickly determine which of my five clients owed what. Even when I'd grown to 20 clients, I was still able to keep a handle on billing. My difficulties began when I acquired another business, and my client list jumped to 60 overnight. I often found myself thinking, “I know this person owes me money; have I invoiced them?”
I'm a lot like a turtle when it comes to decisionmaking—deliberate and slow. That’s why it took me a while to purchase the software I finally chose. Even after I bought it, I was afraid to actually use it. I felt safer sticking with my old method, even though it was flawed.
When I finally opened the box and loaded the software onto my computer, I was amazed. All these easy-to-use, valuable tools had been available for years—why hadn't I taken advantage of them sooner?
I'll admit, I can't do everything perfectly (my husband and my three children will be happy to vouch for that). So it’s great to find tools that make my life easier—and give me more time to focus on things I'm good at.
If you're facing the same decision, take a lesson from this turtle: Slow and steady may win the race—but if you're out of money when you cross the finish line, was it really worth it?
How It Happened
Signs that my accounting system needed help:
- I couldn't figure out where the money was going. I was working hard and sending invoices, but didn't have an effective method of following up. With such a large client base, I couldn't keep track of who was past due, who hadn't been invoiced and who had already paid.
- Clients were correcting invoices. I can't tell you how embarrassing it was to have a client find a mistake on an invoice I had created with a word processing program.
- I acquired another business’ client base and didn't know the people as well. Before, I knew the receivables pattern of each client. But with a new group, it was impossible to predict.
How the software has helped:
- My cash flow has improved tremendously, freeing me up to focus on other aspects of my business’ growth.
- Clients like features such as faster turnaround and the ability to send invoices via e-mail.
- Tax preparation is easier now that everything is in one place.
NFIB Tip
NFIB members can save 10 to 20 percent on QuickBooks Business Solutions. Go to http://www.NFIB.com/benefits and click on “Business Products and Services.”
