You are, you are a CEO!!!

I was really surprised to hear an underlying message this past week.   Entrepreneurs aka small business owners do not believe or consider themselves a CEO.  So to serve you with a kick in the arse my dear small business owners, I am placing a Kibosh on that idea right now.

First, what is a CEO - The Chief Executive Officer aka Entrepreneur, aka business owner, aka YOU, who owns the business is a CEO.  Based on Wikipedia's definition, a CEO is the highest ranking officer in charge of total management of an organization.  Well, it just so happens that you wear, hold and carry all the hats for your business also known as an organization.

So, YOU who owns your business, aka business owner, aka Entrepreneur, aka CEO, you are the highest ranking officer in your business and YOU are in charge of total management of your business, which too is an organization.  Are you following me here?

All CEO's, Entrepreneurs, business owners and YOU who owns your business needs a CFO.

Now, let's go one step further, what is a CFO - The chief financial officer (CFO) is traditionally viewed as a financial gatekeeper, a strategic partner and advisor to the CEO, that's you.

The CFO primarily is responsible for managing the financial risks, financial planning, record-keeping, analysis of data as well as financial reporting to the CEO. Primarily, CFO's create a roadmap of the financial position of the business.

Now as the CEO aka Entrepreneur, aka business owner, aka YOU, who owns the business, started this great adventure because you love doing what you do, right?  and you're really good at it too, right?  Well, I ask you this, what don't you know about the heart of your business, and how do you know what you don't know about the heart of your finances?  And, what do you need to know? 

Such a puzzle isn't it?  Yet the facts are, it is a puzzle if the heart of your finances is not organized.  How are you suppose to know, what you don't know if the heart of your business finances are not organized?  How do you grow your business if you don't have a financial map?

Here's what you need to know as a CEO of your business - You need to know where you have been, where you are now, and where you want to go.  What you don't know renders you powerless.

So you’re next steps: create a financial foundation, organize your finances, setup QuickBooks, so you know where you have been for 2011, know where you are now for January 2012, (it is Jan 30) and create a financial projection for where you want to go for the balance of 2012 and beyond.  

CFO Made Easy provides compassionate support that transforms financial fear into financial power.

What is your next step for turning financial fear into financial power?

Share what your next steps are at d.rosenfelt@cfomadeeasy.com or leave a comment below.

Warmly -

Debbie Rosenfelt

Chief Heart Officer

REVENUE PATROL ALERT - CALL 911 - MISSING REVENUE

What will you take away from this?  Found revenue. LITERALLY!

Yesterday I shared I was working on 1099's.  I sent an e-mail asking for a W-9 from a couple of business owners I do business with and we found $300 that had not been paid.  We both thought a transaction had been paid in full. Yet low and behold, missing revenue was found for a fellow colleague.

A couple of weeks ago the same scenario popped up when a client was reconciling their bank statement to QuickBooks.  We found $1,700 that had not been paid by a client.

So the top revenue tip for you today  . . get a check and balance system in place so you know if your business is missing CASH $$$.

Here are six to do's  -

Invoice your customers, using QuickBooks or another simple accounting software that is easy, peasy. 

Receive payment in the mail or online via credit card or PayPal.

Print the online receipt or photocopy the payment and bank deposit slip for your 2012 records. (something you can refer back to later if you ever question the invoice or payment)

Process receiving the payment in QB.

Create the deposit in QB.

Balance your business bank statement monthly in QB. This is a KEY step, as this confirms the check and balance system.

6 easy steps to make sure you are not missing cash $$$.

Isn't your hard work and time worth having a check and balance system in place so you are receiving the cash you earned?

If you need help or have questions leave a comment below or send off an e-mail to d.rosenfelt@cfomadeeasy.com.

Your Chief Heart Officer

Debbie Rosenfelt

CALL TO ACTION - 2011 1099'S DUE JAN 31, 2012

Happy Monday.  . it's a day for working on 1099's.

Earlier in the month I mentioned there are some changes for issuing 1099's in 2011 and 2012.  Scroll down to the earlier blog post.

THE NEW 411 FOR REPORTING 2011 1099's

Today, I am working on issuing 1099's to my vendors who my business paid more than $600 to by check.  U. S. tax law requires all businesses to file a 1099 for any contractor.

The United States tax form 1099, is used to claim multiple types of income other than wages, salaries, and tips. It’s technically known as an “information return.”

So if your business paid more than $600 to a person in business for themselves, a contractor or company, you too will need to obtain W-9's and issue a 1099.

What is a W-9 - below is a link for the form with instructions.

http://www.irs.gov/pub/irs-pdf/fw9.pdf

Creating a 1099 is very easy.  You can create them online using Turbo Tax.  I went to Office max and purchased the software.  However, you can actually purchase the software online, download it and process your 1099's very easily.  Below is the link.

http://turbotax.intuit.com/small-business-taxes/business.jsp

I am very PASSIONATE about finances and I LOVE supporting you organize the heart of your business.

if you have any questions or need help, leave me a comment or you may e-mail me atd.rosenfelt@cfomadeeasy.com.

Debbie Rosenfelt

Chief Heart Officer

WEEKEND SURVEY QUESTIONS - WHY BOTHER

Happy Friday my loving heartfelt entrepreneurs.

I was at it again ..  trying something new, to see how it works and to engage you.

Would you stop for a moment and follow the link below, check out and answer the thought provoking questions for the heart of your business.  I will run the survey through the weekend and share what I learned from you on Monday.

I greatly appreciate your love and support.

Your Chief Heart Officer

Debbie

http://www.surveymonkey.com/s/XPJL9L9

CALL TO ACTION - WATCH THIS SHORT VIDEO OF QUICKBOOKS CHOICES

Debbie's Wednesday morning SUCCESS!!

For the last week I have been working on creating short snip-it videos to share my recommendations of options for creating a solid financial foundation for the heart of your business.

What is so EXCITING for me, I am doing something new, stretching my brain, trying something new using software (Camtasia) I have never explored before that allows me to interact, share and connect with you.

Yes . .  I have been frustrated throughout the process, thinking to myself, "how do I do this," "darn it," "I didn't get this segment quite right," "how in the heck do I do this." When I was frustrated I got up walked away, and came back to it 30 minutes later and said, let's get it out, it doesn't have to be perfect. (That was this morning)  I allowed myself to play.

I am so COMMITTED to making a difference, it doesn't need to be "perfect".

The benefit of watching me explore trying something new is to encourage you to explore.

This life is a process of learning, and YOU are here to explore and learn.

From me to you - I want YOU to learn how to create a solid financial foundation for the heart of your business.

I want you to breathe, allow yourself to get frustrated and be with your frustration, walk away and come back and play.  Just give yourself permission to PLAY, explore and learn.  Create an adventure.

It's time . . to get it done . . WATCH THIS VIDEO and share with me below, what your commitment is to the heart of your business.

Your Chief Heart Officer - Debbie

Vulnerability . . . .HELP isn't a four-letter word

"When we were children, we used to think that when we were grown up we would no longer be vulnerable.  But to grow up is to accept vulnerability. . . . .To be alive is to be vulnerable. Madeline L'Engle

When I read this over the weekend, I thought of us, you and me and the topic around finances, the heart of our business.

There is an illusion of vulnerability when asking for help around finances.  Even when we admit "I don't know how to ...... (insert here) or I don't know where to start . . . . (insert that here)

Somewhere along our journey of life we were taught vulnerability is a weakness.  So then there is this illusion of "I have to protect" . . . . my ego, my heart . . . (insert what needs to be protected here).

It is a mistake to think that vulnerability is a weakness.  Being vulnerable means being open and receptive.  And to remain open to our journey of life with our business requires strength and conscious action.  Openness and receptivity invites what shows up in our lives to flow.

Have you ever noticed, what you resist, persists?

And when you resist emotions of frustration, irritation, and disappointment, the feeling of helplessness appears.  I read in the January 7th, 2012 Science of the Mind daily guide, "Emotions were designed to emote, as an outward expression of your soul's feelings for the human experience. They allow you to experience life in an intimate and personal way."

Hear this . . .There is no right or wrong, good or bad emotion.

When we allow our emotions and vulnerability to flow, we are allowing life to flow and open up to be with what is.

How does this relate to finances, the heart of your business?

There is vulnerability when we don't know how our business is performing.  Tools or key performance indicators (KPI's) that are used to measure performance with business finances are, Revenue , how much $$ in sales is my business bringing in, expenses, how much $$ is my business spending, and profit/loss, how much is my business producing in earnings or losing?

A few other measurements -  how much in cash do I have in my accounts?  Are my bank account balances matched to my book balances? Do I have enough cash to cover upcoming expenses?  What do I need to grow my business?

Using specific systems and tools to project a specific outcome and/or see how your business is performing is the key to the heart of your business.

So what do you need?  What is your next step?  Ask yourself, what do I want to do differently around my business finances?  What new habit do I want to create that will help me build a new muscle and confidence?

When you make a commitment to learn something new and choose to be with and do your finances differently, mountains will move for you.  I promise!

Are you ready for mountains to move?

Below is a contract for you to copy and paste, print and sign to get yourself started.  Hang it on your office wall, or by your computer, somewhere you can see it that will remind you of  the commitment you made to yourself.

Want some kickass accountability, e-mail me your commitment and we will start a conversation.

What a GREAT way to begin a new week and on a Monday!

Your Chief Heart Officer - Debbie

COMMITMENT CONTRACT

I hereby promise that I will commit my greatest effort to build a successful solid organized financial foundation for the heart of my business once and for all, by treating my business with the priority and importance it deserves, and honoring my commitments to myself to do what it takes to succeed.

 

Promised this ______ day of _________________, 20___

Signed by _____________________________________

UPDATED 411 ON 1099'S & REPORTING 2012 INCOME BY PAYMENT TYPE

Below is an update on the 2011,1099 information I spoke of last Friday.  It is this kind of information you do need to be aware of and address for your business finances.  This impacts how you will report your income for 2012. . . .
it is not fun and exciting . . yet it is information you need. 
So ROCK ON with your day and be informed.

If your business accepts credit cards or other forms of electronic payments such as PayPal or eBay, big changes are in store for you. The first change that you will notice very shortly is that you will be receiving a 1099-K from your merchant services provider. The Housing Assistance Tax Act of 2008 requires all businesses that process credit card and electronic payments to send a Form 1099-K to their clients with more than 200 transactions and $20,000 paid to them. If you fail to provide your EIN to your processor they are required to impose a 28% federal tax withholding on you.

The 1099-K requirements went into effect in the beginning of 2011 and you should receive your 1099-Ks by the end of February at the latest.

There is a new requirement that will be in place for your 2012 tax return that you must prepare for right now. Beginning with your 2012 business finances you will need to separately show the amount of income you received from credit cards (and other electronic payments) and the amount of income you received from cash, checks and other forms of payment. You will be required to provide this information to your CPA tax person for tax reporting purposes.

If you hire someone to do your bookkeeping for you, do not assume that they know about this change.  At this time QuickBooks does not have an added feature to help track this new reporting requirement and they were not even aware of it.

For now, when you process Quickbooks payments you are able to choose, cash, check and credit card as a form of payment. I want you to continue to use this feature. I will report back when Quickbooks has a solution or I have figured out temporary solution to address this issue.

Warmly - Debbie

FINANCE GYM 101

I have this morning ritual that supports me for my day.  I quietly get up at 4:45am, put my workout clothes on, brush my teeth, take my daily vitamins with "Fired up", (it's an orange flavored powder with vitamin B) and since my hubby is still sleeping, silently read the Four Agreements 'Gratitude Prayer' fill my water bottle and then off to the gym.

This morning my trainer had me work on new core exercises that I have never done before.  One exercise was using a HUGE yellow ball, where I lie on it, place one leg up over my knee and balance on the one leg that is on the floor, holding position.  Now when I saw my trainer do it, it looked easy, peasy and simple. 

OH MY LORD - NO.  I could not balance on one leg for more than 5 seconds. Switched to the other leg, the more difficult side . . Uggghhhhh.  However round two, I was able to balance a couple seconds longer.

Inside my head I was thinking, "you're not trying hard enough." "if Rhonda can do it, why can't you."  I was getting frustrated with myself.  Then that little voice in my head said, gosh, you work out every day,  "why can't you do this simple exercise?" 

After the workout, Rhonda praised me and acknowledged how far I got with each core exercise and then preceded to say "these are advanced core exercises."

I felt a little better inside, yet immediately thought, I need to practice more to build my core muscles.  "I want to get this."

So then I thought I have to share this with my community and how it applies to "the heart of your business"  Your business finances are the core muscle that communicates to you when your business is on track.  Our core mucles are what hold us upright, and the core muscle of your business, finances is what is able to hold your business strong and grow. Such as revenue, profit, and cash.  Creating a solid organized foundation is about building a muscle.

A solid organized financial foundation is like our bodies, a communication tool.  It guides you to tell you what is needed.  Build revenue, increase prices, and/or decrease expenses to increase the bottom line.

I have learned it takes time and persistence to learn a new exercise, build strength in my core.  DARN IT . . .There is no magic pill for results to magically appear to build body strength or brain smarts with business finances.

What can you do? . . be gentle with YOU.  . with patience and persistence.  Practice, practice, practice each day, as if you are going to the gym of finance, and take baby steps.  Challenge yourself to learn something new every day. This finance stuff can get so serious and stuffy, so have some fun with it.

Each step you take is a success.  And share your successes each day with someone, a friend, mastermind colleague, even me, I would LOVE to celebrate with you . d.rosenfelt@cfomadeeasy.com. and acknowledge out loud to yourself.

So, I ask, what is to be tickled with the heart of your business?

And I can't let you go without a homework assignment.  . . for today  -  Create two colorful 2012 folders, with your favorite picture on it or colorful design.  . have some fun and be creative.  One for income receipts and the second for expense receipts.   

Here's to a colorful, sparkly, solid organized financial foundation.

Warmly - Your Chief Heart Officer - Debbie Rosenfelt

THE NEW 411 FOR REPORTING 2011 1099's

Well it appears the IRS has placed some new regulation in force for businesses who pay their vendors thru a credit card, debit card or PayPal.

The third party payment processing companies will be required to file form 1099-K on your behalf and then what ever you have paid to vendors via check or cash, you will be responsible for filing a 1099-misc.

So what can get complicated is if you paid your vendors with a check and thru PayPal or a debit card or credit card.  You will have to subtract out the PayPal, debit card and credit card payments from the 1099-misc.

Below is an overview notice I received from Intuit, who sells QuickBooks.

Contact me directly if you have any questions or need direction of how to handle for your 2011 finances. d.rosenfelt@cfomadeeasy.com

Overview

Beginning with tax year 2011, the IRS requires you to exclude certain payment types you made to a 1099 vendor on Form 1099-MISC that will be included on third party payment processors such as credit card companies, PayPal etc. on forms 1099-K.

THE DEFINITION OF INSANITY

You have heard this before, right?  The definition of insanity is doing the same thing over and over again, expecting different results.

So here we are, six days into 2012.  The truth is that every minute of every day is an opportunity to "begin again".  It is filled with new opportunities to think differently and to be different.  You don't have to repeat the past.  Stop.  . . right now . . YES, right now and take a deep breath.

So I ask . . what do you need?  What do you need right now to say ok . . I am going to do this.  I am committed to organizing my business finances.

Steps I have shared so far to get you on the road, keep personal finances and business finances separate.  Open a business checking and savings account. Apply for a credit card in your business name.

A word of caution, DO NOT, comingle personal funds with business funds.  It leaves room for the IRS to disallow an expense for your business if you are even audited.

Next step, separate income receipts, and expense receipts.  Income is the revenue your business earns and the expenses are what you spend money on to maintain your business.

Now let's get your revenue and expenses organized.

Find and setup a system that is easy to use and maintain.  Setting up a system properly is the key to keeping it simple and easy. 

I use and recommend QuickBooks, it is easy and a simple system.  Yes, there are other simple systems, you just have to find one that works best for you and that will provide support.  Support is key.

Step one setup for QuickBooks -

Start by creating the chart of accounts for your business.  A chart of accounts is like a story book of the financial events that occur in your business. 

The benefit of of having a Chart of Accounts is tracking revenue and expenses.  You will learn and see which products and services are generating the most or least revenue and expenses tell you where you are spending the least and most of money on your business.

Example - If your business has several different products or services, you can set up the Chart of Accounts to reflect as much detail as you want.

Let me give you a couple of samples from businesses that I work with -

Retail business - cards, clothing, gifts, jewelry.

Gym business - Memberships, Single, joint, family, tanning, Key cards, etc.

Service business that offers products, coaching, product #1, product #2, etc.

Your easy homework assignment - create a list of products and or services that you offer and that you want to track.  We will use this information for creating a chart of accountsfor your business.

Next week, I will cover examples of expenses. 

One last tip for today - when you create a deposit, photo copy the deposit slip and checks to keep track of all money coming in.

The benefit, having the backup/support for each deposit allows you to go back and see the actual deposit if your account does not balance at the end of the month. 

Repeat after me "Cash is KING" and you want to track cash accurately.

Have a PASSIONATE filled weekend and I will connect with you next week.

New Programs to Support you Build a Solid Financial Foundation

A few words of wisdom I read this morning -

Our human journey is all about facing our challenges and moving through them faithfully instead of being paralyzed by fear.  There is no shame in experiencing challenges or going through periods of confusion and uncertainty. But Remember - you are not supposed to stay there.

I love reading inspiring messages that remind me I am on a human journey. Sometimes I just get caught up in not understanding something or I am experiencing overwhelm.  What a gentle reminder to guide me on my daily path, that it is ok to have challenges and be confused.  As I read this I also thought of you.

So how may this message apply around finances? 

First, face where you are, honor and acknowledge the challenge you hold around organizing your finances and move faithfully by taking one step toward creating a solid organized financial foundation for the heart of your business.

So how can you do this with guided support?

Over the next couple of weeks I will be offering new CFO Made Easy programs that will support you with building that solid organized foundation.

What do these programs look like? 

Well, to start off 2012, I will be offering a 5 week home-study course on setting up QuickBooks for your business.  There will be videos with me walking you thru each step of the set up, bank accounts, credit card account, chart of Accounts to reconciling your bank account, setting up items, customers and invoices.  Setting up Vendors, payables and writing checks and running important reports so you can see the financial progress of your business.

A step by step process that you will have in front of you.  A QuickBooks instruction video to follow along as you set up your business QuickBooks.  Two windows on your computer, side by side.  How easy is that?

There is value in consistency, so you will practice each day, with me right by your side, walking you thru the how to' on the video, and you will see and feel you confidence soar each step of the way.

Next, I will open a community membership site for you to join interact with and participate in bi-weekly Q&A strategy sessions.

And then there is the FREEDOM program.  The acronym represents;

Financial Foundation

Revenue Tracking Map

Expense Tracking Map

Easy Profit and Loss

Daily Cash Management Tracking

Opportunity to Plan Cash Flow.

Monthly Trailing Map - that tracks the progress of businesses who have been operating for more than 12 months.

For the next several days I will share with you pieces of the home-study program and the FREEDOM program and the positive impact of creating a solid organized financial foundation.

Wramly,

Debbie Rosenfelt 
Chief Heart Officer

Introducing CFO Made Easy

I am so EXCITED to introduce you to CFO Made Easy.  

In 2011 I took the leap to officially become a certified co-active coach. In August, (after I completed certification) I was asked by a fellow coach,  “are you going to combine your experience as a CFO and coach to support entrepreneurs?” I thought about it for a few weeks and said to myself, WOW, what an opportunity for me to passionately support a community of entrepreneurs.

While on my journey of coaching I worked with a coach that helped me define one of my creative, strong loving values, an “Italian family connection” . I have found throughout my life I have been surrounded with a community of people.  Be it family, co-workers, employees, customers, business colleagues and friends.

My most recent community has been with fellow coaches and leaders that live life on purpose, with passion and zest . . that are making a difference. So my community is similar to an Italian family (yes, I actually have an Italian family on my mother’s side) who speak from their heart, are passionate and love life.

Who am I you ask – Debbie Rosenfelt the founder and Chief Heart Officer of CFO Made Easy. My professional experience has been in the world of finance as a CFO or Controller for the last 28 years. 

What does CFO stand for and what do we do? 

A Chief Financial Officer and a Controller is someone who is responsible for the accounting and finances of a business.  I have primarily worked for and with CEO’s of small to medium sized privately held businesses ranging from $10 million to $35 million in revenue.

When I was hired I would go into a company, investigate, clean up and create a system with structure that would be simple and easy for the business to maintain.  Somehow I always attracted companies that did not have an organized finance and accounting system.

I always enjoyed creating something new, that was simple and easy to maintain.

So from that inquiry in August I asked myself, why not create a business based on what I am passionate about and love to do, coaching and finance . . oh yeah, and make it easy.  Easy because I see entrepreneurs and business owners struggle with the feeling of overwhelm, fear and frustration managing the heart of their business. 

The heart of a business is finances, and the key is to create a solid, organized foundation.

Recently I have heard painful stories from entrepreneurs ,  “I don’t know if I am going to have enough money to pay all my bills.”  “I don’t know where I stand with cash.”  “I don’t know if the business has a profit or loss. “ “ I’m not sure if revenue is properly recorded.”  Or “I feel overwhelmed, I don’t know how to keep track of everything, am I doing this right?"

As I would listen to their stories I thought, there must be other business owners and entrepreneurs who are having the same painful conversation.  Who do they have to talk to and ask?

Then I thought, what if I create a community and support entrepreneurs and business owners with letting go of the fear, overwhelm and relieve the feeling and thinking “am I doing my business finances “right”. And with the support, educate and share how working with your business finances can be easy.

So HELLO world of entrepreneurs and business owners . . . CFO Made Easy was sparked from an inquiry and I am igniting the idea . . NOW. . right now.

What can you do, I am going to ask you to step into entering each day with a mindset that is eager to learn, is not afraid of making mistakes and unleash your desire to grow.   Place the overwhelm, and the fear aside . . . leave being “wrong” outside the front door and give yourself permission to be with where you are, with the heart of your business and join our community and share with me how you would like support, and what you need to build a solid organized financial foundation.

So get ready for a warm, passionately supported heartfelt ride with your Chief Heart officer, Debbie Rosenfelt, and CFO Made Easy.

I look forward to connect with you and support you, with embracing the heart of your business.

Happy Passionate 2012!

Post questions, inquiries, and what you need and want for support below to connect with me.