Honing Your Tech Skills

Photo by businessnewsdaily.com

We live in an era of ever-changing technology, especially in business.  Have you ever seen movies and/or television programs that show what was used in businesses at the time of filming?  Gone are the old mimeograph machines, adding machines, and the very heavy typewriters (I still remember my mother using her Smith-Corona from the 70's when she'd be typing one of her stories).  Nowadays we have 4-in-1 printers, smartphones, and all kinds of computers...laptop, desktop, and even the versatile and portable tablet.  At times I often wonder how people were able to work so efficiently before computers became a mainstay in our busy lives.

With the new technology comes the opportunity to brush up and learn new skills.  Instead of typewriters, there are many word processing programs available where it's not necessary to retype an entire report.  Spreadsheet programs, with their numerous functions, are heavily used in many businesses for data analysis and performance tracking.  If a colleague halfway around the world has an urgent need, they can simply use an e-mail program to have their need addressed without delay.  And there is no need for the old-fashioned overhead and slide projectors...a fantastic presentation can be created with a few clicks of the mouse and some keystrokes.

Some businesses utilize the services of a consultant in order to acquire and learn new skills for their business.  However, consultants are known to charge high fees for their services, so it's generally best to use other resources to hone your business skills.  The public library has a wealth of information available...sometimes even for free!  Many community colleges offer excellent classes in word processing, spreadsheet compilation, creating presentations, and using e-mail programs.  Or, if you are good friends with someone who you know has the skills you need to learn, given them a call and see if they are available to give you a hand.

The bottom line is this...don't be afraid of technology.  Learn how to EMBRACE it! 

Why RESPECT is crucial to success in business...

Photo courtesy of Microsoft.com

In my many years in the workforce, I have witnessed respect and disrespect between employers and employees.  One position that particularly stands out in my mind is when I worked for a homeowner's association management company.  It was a very small business, with the husband-and-wife co-owners and general managers, two property managers, and the bookkeeper (which was me).  The owners strongly believed that since they owned the business, it gave them the right to treat their employees however they wish.  Needless to say, in the two years that I was employed by them, there were numerous turnovers (which included my voluntary resignation) and a very hostile work environment.  The business was sold to another management company not long after my resignation.

What kind of a message is sent when an employee goes to great pains to ensure that their work is done correctly, only to be harshly criticized by their superiors?  Possibly ingratitude, negative reinforcement, and hindering productivity.  Employers need to not only understand how much productivity is generated by their employees, but also to show appreciation, and above all else, respect.  Granted, there are some employers who truly believe that coming down hard on their employees will improve morale and increase productivity.  There have been many articles and studies published which prove that abrasiveness has the opposite effect.  In the end, businesses suffer and end up closing.

Respect goes a long way in establishing good relationships between employers and their employees.   

Posting Payments Properly...:)

Photo from Microsoft Office Clip Art

 



I am going to begin this entry with a hypothetical question...

Now, suppose your business received an invoice from a vendor for either services or goods rendered, and you remit payment to the vendor. You would expect to have the payment applied to the invoice then, correct?

Unfortunately, that is not always the case. I was shocked and dismayed when I learned earlier this week that a law firm my business uses for legal matters does not apply payments to the invoices, but rather, towards the past due balance if necessary. That sends out the wrong message entirely.

In my years of working in the accounting field (especially accounts receivable), the best way (and I should mention the ONLY WAY) to apply payments received is to apply them TOWARDS THE INVOICE referenced on the remittance information provided on the check (or online payment, since of course there's always more than one way of remitting payments). It's an apples-to-apples equation and definitely not rocket science.

When handling payments, if the payment is only applied to the past due balance and not the invoice itself, that invites all sorts of issues galore--confusion, frustration, and perhaps distrust. The client on one end of the spectrum may insist that their records show the invoice as being paid in full, while on the other end the vendor may beg to differ, indicating that the information is irrelevant since their records would show the invoice as open due to how the payment was applied.

You see the confusion so far? It is frustrating, isn't it? In fact, you might take your business elsewhere if you feel that your payments are being mishandled, so to speak.

Now granted, I've never worked for the IRS or the local tax authority (in this case, the Arizona Department of Revenue), but I do wonder if any of the agents who have had to audit a business would roll their eyes in annoyance when they hear about how the business handles their accounts receivable by only applying the payment to the past due balance and not directly towards the invoice referenced. For all anyone knows, that could very well be the main reason why the business was being audited in the first place.

The research process would commence in a smooth, uninhibited manner if this business ethic was used. I speak from personal experience. For example, let's say I receive a statement from a vendor indicating that an invoice is unpaid. However, my records show the invoice as paid. I make a simple phone call to the vendor, provide them with the necessary information, and about a day later I receive a call from the vendor explaining that the payment was applied incorrectly and made the necessary correction. Issue resolved, and that is that.

But on the flipside, and this is a true example, let's say I did receive a statment from a vendor (the law firm) indicating that there is a past due balance. I do my research, notify the individual handling the accounting for the firm, and explain the situation. Then the bombshell is dropped: "We only apply payments towards balances, not individual invoices." You may want to let out a little sigh of exasperation (it's best and professional to wait until after the conversation is finished), but you will have no choice but to present the vendor with the information you have, explain how checks are issued, and give them adequate time to do the necessary research on their end. We can all hope that they may consider changing their accounting policies.

We may be familiar with the term "checks and balances" (no pun intended), which according to the Merriam-Webster Dictionary is defined as "a system that allows each branch of a government to amend or veto acts of another branch so as to prevent any one branch from exerting too much power." Of course, it's impossible for a client to dictate to their vendor how they should be handling any payments received, but from an accounting perspective, the term "checks and balances" seems to make fairly good sense. If all businesses were able to apply payments received directly to the corresponding invoices and not just the past due balance, would that, perchance, improve the economy? Would that help businesses to become favorable towards prospective clients, avoid costly and nerve-wracking audits and lawsuits, and be more profitable?

It may be an accounting utopia, but we can all dream. WLB :)

What Every Vendor Needs to Know...

Photo courtesy Microsoft Office Clip Art

For the past 10 years, I have worked in the accounting profession and have learned a great deal about the proper ways that a vendor (a business who provides services) should be paid. In fact, we as individuals receive bills (but I will refer to them as invoices) from vendors--for electricity, telephone, trash and water, and so forth. However, there are some vendors who don't seem to understand that there are certain procedures that need to be followed in order to be paid.

Unfortunately, we live in a society where greed and dishonesty run rampant. I dare say that one reason why the economy is in terrible shape is because of greedy and dishonest individuals. It is up to each business to ensure that these destructive qualities will not seep in, to arm and protect themselves from the devastating aftermath that can possibly follow. Too many items can fall through the cracks, and if a stone is left unturned, then collapse is inevitable.

There have been some vendors (including one at my job today) who feel that they should be paid immediately, without submitting an invoice or having their work inspected. In fact, there are some who want the money upfront BEFORE the work has even started (note: the exceptions are established businesses who have an excellent service history). I can't even begin to mention the stories I've seen in the news about individuals who would scam others (especially senior citizens) by demanding money upfront before services are rendered.

So, you ask, how do we go about having this matter addressed?

First of all, each vendor needs to not only KNOW, but UNDERSTAND that an invoice MUST be submitted in order to be paid. No exceptions. It's doesn't have to be fancy or anything like that. There are some invoices that are just plain handwritten on notebook paper. In fact, there are businesses (including my employer) that require a form be completed for payment--it's called a W-9, and can be downloaded from the website for the Internal Revenue Service (www.irs.gov). Why is this required? It's to make sure that these individuals providing services are legitimate, and not some "fly-by-night" operation. And above all else, it's required by federal law. Don't believe me? Ask an accountant.

Secondly, the work performed must be satisfactorily completed. If it's not done to the customer's satisfaction, the vendor won't be paid. It's as plain and simple as that. If you don't know how to do the work, then find another line of work that you know you can do. Don't be too surprised if you, for instance, do work for someone who just happens to be retired from the same profession you're in. My boss is a retired engineer, and he said that he can't believe how a few people who he'd hired to do some engineering work are unable to do the work that they were hired to do, especially since they claimed to be “professionals” in their line of work.

And finally, each and every vendor needs to be PATIENT and WAIT for payment, which may take up to a week at the earliest. Yes, a vendor can come to the office and want to be paid right then and there, but there are procedures that must be followed. An invoice needs to be submitted, the work inspected for satisfactory completion, and of course, the aforementioned invoice must then be approved for payment. Then the check can be issued.

My final note to the vendors in closing: please, for goodness sake, do not whine and complain to your client about the possibility of you not being able to make your mortgage payment and/or the telephone service being disconnected all because the client can't issue you a check right that minute. Your client isn't responsible for your mortgage or your telephone--YOU are. The vendor who called me today did the right thing by providing me with a properly completed W-9, but he did not provide an invoice. He asked where his check was. My response: "Well, did you submit an invoice?" His response: "I didn't know I had to submit an invoice." Not good. I had the vendor speak with the property manager so that the vendor could understand why he needed to submit an invoice and what the procedures are in order for him to be paid, and this vendor complained about how he may have his telephone service disconnected because we weren't able to pay him immediately. That was uncalled for and absolutely unprofessional. It wouldn't be surprising in the least if my employer decides to find another vendor--at least one who has a better understanding of accounting procedures, and who has a better sense of professionalism.

Disclaimer: I do not have a college degree, but I do have experience and know-how. WLB :)