BABY STEPS - STEP 3 OF A 3 STEP ACTION PLAN FOR MANAGING CASH

"Gross revenue means nothing if, at the end of the day, you have no operating cash." ~ MIKE MICHALOWIZ

For a good twenty plus years, I managed cash daily, weekly, monthly and quarterly at the privately held companies I worked for.  Consistently working cash flow so we were prepared for anything.

Step three for managing cash is using a 52-week cash flow projections.

This is a 52 week spreadsheet that tracks cash receivables coming in and cash payables going out. Cash Receivables are listed at the top. You can create a variety of categories for cash coming in.  Examples, receivables from various areas of the business, coaching, products,, events, and seminars, etc.  Cash going out categories, inventory, then list your various vendors if that is how you want to track purchases. Commissions, payments to contractors, weekly or bi-weekly payroll, plus normal monthly expenses, rent, utilities, electricity, natural gas, phone, internet, water, lease payments, car payments.  The 52 week cash flow spreadsheet is a cash story book, it tells you where you have been, how you performed and the variances that have occurred, which will allow you to realign how you are managing cash.  At the end of the spread sheet it tells you if there is lots of cash left over for the following week, or not enough to cover you, so then you can plan to borrow or adjust what will go out.

Why manage cash weekly? This is the path that provides knowledge and direction for your financial goals for your business and life. This is a tool used to see where you are and where you are heading at all times. Knowledge is power. Mapping out cash coming in and going out weekly, allows you to see and plan what is needed.

A question I am constantly asked - Why do I need to manage cash flow daily when I use QuickBooks.?

Great question - the answer - CASH is KING. Cash is worked daily, weekly, monthly, quarterly and annually.  Cash is the lifeblood of every business. If you don't manage the cash coming in from accounts receivable and going out, accounts payable you run the risk of putting yourself out of business.  When you don't manage sales and accounts receivable you run the risk of missing income. (See previous post ) If you are not managing your expenses. i.e. accounts payable you can run the risk of negative circumstances where you have to scramble.  The numbers are only information, with that information, you make choices and decisions how to move forward.

Business's fail with poor cash flow management, so why run the risk?

As I have shared in earlier posts, create that new muscle, a new habit and learn how to work your cash flow differently.  Cash happens right now, in this very moment when you receive a payment or are purchasing goods or services. Working cash daily and weekly forces you to look at and plan.  You are the CEO of your business and the CFO. Lead your finances as you lead your business.

Remember, CASH is KING, so you need to know where you are at all times.

Creating simple, easy baby step habits opens the door to new possibilities for you and your business.

Get in to action, and get cracking on managing your cash every single freaking day. Do you get my drift.  Your business will grow, grow, grow and so will you when you manage what matters.  CASH is KING!  If you have any questions or need help with managing your cash, reach out and ask for help, e-mail me at d.rosenfelt@cfomadeeasy.com to set up an appointment to discuss your needs.


Warmly -
Debbie Rosenfelt
President / CFO / Leader-of-the-Heart

BELIEVE IN YOU!

This morning as I was reading, I came across this short gentle reminder.

Notice and realize YOU are the CEO of your life and business and the CFO of your life and business.

Your strength and effectivness increase as you believe in yourself and your ability to grow from the experiences you have in life. Look upon challenges as opportunities to learn and apply your knowledge and your magical touch. ~ Doreen Virtue

Warmly -

Debbie
Chief Heart Officer
CFO Made Easy

BABY STEPS - STEP 2 OF A 4 STEP ACTION PLAN FOR MANAGING CASH

For a good twenty years, I managed cash daily, weekly, monthly and quarterly at the privately held companies I worked for.  Consistently working cash flow so we were prepared for anything.

Step two for managing cash is using a weekly cash management tool.

This is a 52 week spreadsheet that tracks cash flow going in and coming out of your bank accounts. General checking, payroll account (If you have a separate account) savings account, and line of credit. In addition, this spreadsheet tracks accounts receivable, account payable and any credit card debt you may carry. 

Using this tool will have you looking at your accounts consistently and allows you to manage and plan, when you need to borrow from a line of credit, pay down the line, and or transfer money into savings.

We have a savings account for the gym and we sock $500 each month to cover the semi-annual real estate property taxes.  In addition, if there is a little cash left over we will put additional funds aside to cover new equipment for the gym.

You can purchase the weekly cash management tool to your right for $175, equal to $3.37 a week, which is equivalent to less than one Grande latte.

Why manage cash weekly? This is the path that provides knowledge and direction for your financial goals for your business. This is so you see where you have been, know where you are and plan where you are heading at all times. Knowledge is power. Mapping out cash coming in and going out weekly, allows you to see and plan what is needed.

A question I am constantly asked - Why do I need to manage cash flow daily when I use QuickBooks.?

Great question - the answer - CASH is KING. It is the lifeblood of every business. If you don't manage the cash coming in from accounts receivable and going out, accounts payable you run the risk of putting yourself out of business.  When you don't manage sales and accounts receivable you run the risk of missing income. (See previous post REVENUE PATROL ALERT ) If you are not managing your expenses. i.e. accounts payable you can run the risk of negative circumstances where you have to scramble.  The numbers are only information, with that information, you make choices and decisions how to move forward.

A short story about cash flow. Back in 2008 I was working with a company that sold goods wholesale to large retailers.  There was one company that we had to constantly monitor as there were rumbles of bankruptcy in the air. Frightening, especially when there was over $500k in outstanding receivables. They continued to make promises to pay, however at the end of June we were notified they filed for bankruptcy protection.

The good news, we had one advantage, our product the bankrupt business was selling, was their best seller. They needed our product.  I immediately created a letter to the President of the bankrupt company stating all sales will be paid for in advance by a wire. The President agreed. How did we do with cash flow? The cash sales from the bankrupt company provided cash in advance and funded our growth as the business grew 74%that year.  You need cash to grow.

Your business will fail with poor cash flow management, so why run the risk?

Create that new muscle, a new habit and learn how to work your cash flow differently.  As I shared in Step One, Cash happens right now, in this very moment when you receive a payment or are purchasing goods or services. Working cash daily and weekly forces you to look and plan.  You are the CEO of your business and the CFO. Lead your finances as you lead your business.

Remember, CASH is KING, so you need to know where you are at all times.

Creating simple, easy baby step habits opens the door to new possibilities for you and your business.

Next is step three - Cash Flow Management - Planning and mapping out sales i.e accounts receivable, expenses, i.e. accounts payable and credit card debt weekly.

Get in to action, invest in yourself and your business. Purchase the weekly cash management tool and get cracking on managing your cash. If you have any questions please leave below or e-mail me at d.rosenfelt@cfomadeeasy.com

Warmly -

Debbie Rosenfelt

Chief Heart Officer.

ENTREPRENEURS USE LOGIC & MAGIC

Each morning I have a ritual of caring for me . . take my vitamins, recite a gratitude prayer from the Four Agreements, go to the gym and work out with my trainer or without, come home feed the cats, grab a bite to eat, mediate and read a few inspiring words to support my day.

Below is Monday's reading from Science of Mind and as I read I thought of us . . Entrepreneurs

The mind can calculate, but the spirit yearns,

and the heart knows what the heart knows.

Stephen King

Since we cannot contract the Absolute,

we shall have to expand the relative.

The Science of Mind, page 405

Logic and magic: life is equal parts of either. Their order is reversible.

Sometimes, we cobble together some scheme using our logical

and logistical faculties, later to realize, when our clever thinking will

take us no further, “This is going to take a miracle.” Other times,

we’re thunderstruck by a knowing in the heart, and then have to

start framing out all the practical details. We do not have two separate

mental compartments for logic and magic; they’re more like

two programs in the same computer—one that analyzes data, and

the other that converts that data into sounds, colors, and sensations

to dazzle the senses. We would not be a whole self without both.

Proably, we have a bias toward one way of operating or the

other, so our learning comes in the form of trusting that both our

logical and magical worldviews will justify themselves. The heart

does what it does, and it may take a while for the head to catch up.

The head sets a direction, and it may then take a while for the heart

to buy into it. When they operate smoothly in tandem, we hunker

down, do the math, and then reach into seemingly empty space to

draw in some quality or ingredient that completes the picture. To

balance these energies in our lives, we need only trust that we are

already doing so. SOM June 11, 2012

We have our dreams and desires which can be magical and then, there is logic as well . .

It just so happens at this time Chase bank and Living Social are sponsoring a grant pool of $3 million dollars to be shared among 12 small businesses that are chosen by a panel. The twelve will each receive $250k to grow and expand their business.  An amazing opportunity, isn't it? Any business may complete and submit the application then find 250 people to vote for their business.  It is a gateway to make sure those who are serious about the opportunity to earn their chance.

I applied for the gym, SNAP Fitness in Edmonds, WA last Sunday, June 10th and I have been vying for votes, via FaceBook, Twitter, asking family, friends, members of the gym and business colleagues for votes.  This is an experience of dedication and commitment, supporting other entrepreneurs by sharing votes with each other, creating conversations of support and camaraderie. People having faith, voting before they receive a vote, others saying, I will vote for you only if you vote for me.  I just vote away and give so everyone has a chance to receive a shot of 250 votes. Know the 250 votes, only give eligibility, there is no guarantee. this is where the magic will come in for the fortunate 12. Yet look at the community this $3 million grant has created.  Entrepreneurs, very open and loving to support each other with an opportunity that can feel magical.

Entrepreneurs naturally hold the space of magic, listening to our intuition, listening to a sense or feeling inside that says how can I not do this and then logic what do I need to do.

The 12 entrepreneurs who receive the grant will be elated, excited and will need to logically plan out how to best utilize the money for their business if they have not done so already.  There was a question in the application that asked, "What will you do with the money."

As your Chief Heart Officer, I encourage every entrepreneur to commit to creating a solid organized financial foundation, to track the investment and how it is utilized. 

Note: a 1099 will be issued to the grant winners by Chase bank for the $250k, and income tax will be paid on the net profits for that year.  Best of luck to every business owner and entrepreneur. Make sure you are prepared with an action plan and strategy of how you will use the money.

Warmly -

Debbie Rosenfelt

Chief Heart Officer

PS - Please vote for SNAP Fitness in Edmonds, WA at Mission Small Business and all other businesses that you would like to support with votes.

FRIDAY'S STORY TO INSPIRE - "TELL ME SOMETHING GOOD"

Today's GREAT inspiring story . . I LOVED it as soon as I read it and thought this is PERFECT to share.  Of course I am always thinking.  . how can I apply inspiring stories around finances . . business and even personal . .

So as you read.  . apply this to how you think about and work with your finances . . this is about shifting your perspective . . look at the positive . . .
Tell me something good  . . .below . . Be inspired to just be with where you are.

Enjoy!

Here is your Friday story,

"Tell Me Something Good"

Many people that work at the hospital know me by the phrase/question: "Tell me something good!" Of course there are many things in this world that are bad; HOWEVER, there are also many, many things in this world that are good.

It took me years before I realized this valuable life's lesson, but I finally learned it! Therefore, I "spread" this message around work at the Harris Healthcare System, mainly at Ben Taub General Hospital on the trauma floor, to patients, families and staff.

On one occasion I called a discharged patient, Barbara, whom I had worked with over a lengthy hospitalization. Every time I would enter her room, I would ask her to "tell me something good!" At first, she did not have any answers because she felt that "nothing was good." However, eventually she started thinking deeply and realized, "Sure, I have many problems, but I also have many positive things. At least I am able to say I woke up."

She became positive and started smiling more and more, as she progressed daily. Eventually, she was discharged from the hospital. After a week, I called her to see how she was doing. Barbara answered the phone and I said, "Hi, this is Mike Segal." I waited for her to respond . . . and waited . . . and waited some more. I heard nothing but breathing on the other end of the phone. I broke the silence by repeating, "This is Mike Segal" and added "from Ben Taub Hospital." I was sure she now would realize who I was; however, again "nothing" but silence on the other end of the phone receiver. Quickly I said, "Tell me something good!"

I could "feel" Barbara's smile as she screamed, "MIKE!" She started yelling out questions and said she was doing very well. Now, it was my turn to smile!

I never know what to expect when I ask that question. One day I walked into a room and saw a patient in his hospital bed with his wife close by in a chair. "Hi, it's Mike. Hello John . . . Hello Sara. John, tell me something good."

I had been working with his wife, mainly in the waiting room, so I had not had much interaction with John, especially since he had been in the ICU, heavily sedated. However, now it was my time to ask my question, "Tell me something good."

John calmly answered, "Peanut Butter."

I started laughing and said, "Yes . . . Peanut Butter is good, but tell me something good ABOUT YOU!"

"I am looking forward to eating a Peanut Butter sandwich."

I continued to laugh as I thought, "At least he is not thinking negatively!"

Yet another patient, Mary, had been in the hospital for many weeks. She was beginning to get somewhat depressed, thinking on more than one occasion "that she would never be discharged from the hospital." I tried to encourage her, having her focus on what was positive in her life: family, friends, improving . . . I told her about one of my favorite books (out of print), which was a collection of positive short stories called, "Focus On The Bagel, Not On The Hole." I explained that, "Sure, there are many bad things in life; however, there are so many great things: Like the bagel!" I always tried to encourage her to "FOCUS ON THE BAGEL!"

One Monday when I walked into Mary's room, I saw her smiling from ear to ear. I quickly asked, "Mary, tell me something good." She hurriedly replied, "Mike, the doctor said maybe I could go home at the end of the week!"

I jumped back in, asking, "So what's the first thing you're going to do when you get home?"

Mary calmly smiled and said, "I'm going to eat a bagel . . . with Philadelphia cream cheese spread over and blocking the hole!"

I laughed, but realized how far she had come - both physically and emotionally. Sure, life can hurt, but Mary taught me that with a positive attitude, plus the Philadelphia cream cheese, most things are possible!

Michael Jordan Segal ©2012
Michael Jordan Segal, who defied all odds after being shot in the head and then returning to college, is a husband, father and social worker. He works at a level one trauma center (giving emotional support and hope to patients and families), freelance author (including a CD/Download of 12 stories, read with light background music, entitled POSSIBLE, as well as working on his autobiography, which will be entitled A SHOT OF INSPIRATION), and inspirational speaker, sharing his recipe for happiness, recovery and success before conferences and businesses. To contact Mike or to order his CD, please visit www.InspirationByMike.com   as well as checking out his youtube www.youtube.com/watch?v=3ZLkyz4KG7A

How did that feel?  Share . .  Tell Me Something Good below . .about your business . . about your finances   .about your life.

Make it a great weekend . . and share a story to inspire . .

Warmly -

Debbie Rosenfelt
Chief Heart Officer

FRIDAY'S STORY TO INSPIRE - A MENTOR'S PUSH

Today's story to inspire is a reminder that there are times we need a kick in the butt to do "it" (whatever it is) differently.  Certainly it doesn't feel good, yet see the gift in the push.
The push challenges us, feels uncomfortable, and builds courage and confidence. As you read today's very inspiring story ask, Where do you need the push when it comes to your business finances.  What's the act of courage you can take around business finances?  What is needed to build your confidence with creating a solid organized financial foundation.

The stories I share each Friday are to make you think and YES I tie it to finances, as that is what I breathe everyday to hold CEO's and business owners accountable with their finances.

Enjoy Friday's story to inspire.

Push

"How are you feeling?" asked my friendly neurosurgeon Dr. Alex Gol as I lay in my hospital bed in the rehab hospital at 3:30 P.M. after a torturous day in therapy. I could not yet utter a single word after sustaining a severe traumatic brain injury (TBI) at the age of 19. So I nodded as if to say, "OK." Dr. Gol then calmly replied, "That's nice," and quickly left the room with a smile.

As he was leaving I thought to myself, "Dr. Gol...so nice...so calm...so peaceful." I tried to reposition myself in my bed as the door closed behind him in order to get more comfortable, but something was not "right" in the hospital hallway as I heard a great commotion coming from there. (True, I could not yet speak; however, nothing was wrong with my hearing and there was plenty of screaming coming from the hall.) I wondered, "What was the problem?"

I soon found out the cause of the chaos: it was sweet, serene and calm Dr. Gol who was causing it.

As soon as he left my room he erupted: "WHO'S THE NURSE TAKING CARE OF MIKE? WHAT'S HE DOING IN BED SO EARLY? HE'S A 19 YEAR OLD VICTIM OF TBI, NOT A 95 YEAR OLD STROKE VICTIM! GET HIM OUT OF THAT BED, AND I DON'T WANT HIM BACK IN BED UNTIL HE GOES TO SLEEP!"

The nurses had never seen Dr. Gol act like that. In fact, they had never heard him raise his voice. They quickly got me out of bed and put me in my wheelchair until 9 P.M.

I was miserable. I wanted to get back into my comfortable bed - well, it was not so comfortable but it was much less uncomfortable than my wheelchair or any kind of chair, for that matter.

As I said, after therapy was over at 3 P.M. I wanted to get straight back in bed; however, throughout the following weeks and months the nurses did not want to face "the wrath of Dr. Gol." Therefore, after therapy I remained in my wheelchair in my room until I went to sleep. Being in the wheelchair for so long was agonizing!

I hated Dr. Gol after that eventful day when he asked me that seemingly simple question while I was trying to relax in bed. However, years later I loved him as I realized Dr. Gol was only doing what was in my best interest.

When I returned to college after being out for so long, my professors, after learning what had happened to me and realizing that I could no longer read as quickly as before I was hurt, were more than happy to say, "Mike, it's ok. Just read what you can and we'll test you on that material." However, one professor did not say that. Dr. Sheldon Ekland-Olson, a sociology professor, said, "Mike, I understand you have difficulty reading. I've had many students with many visual problems. For those students, I refer them to "Recording for the Blind." They have access to many textbooks on cassettes. Here's the phone number..."

I "hated" that statement as I wanted to take the "easy way out." (My feelings of "hate" were very similar to those I had for Dr. Gol on that eventful afternoon in the hospital.) However, I have since learned that the "easy way" is quite often the "wrong way."

Sometimes everyone needs a "push." Even I, recently, had to be reminded to push myself as I had gotten "lazy" at the gym. However, a "stranger" reminded me to use my right hand. Even though it was difficult, I thanked him for the reminder.

I have learned that the difficult things in life are often the sweet things in life. One cannot experience "beauty" without experiencing "bitterness." Remember, "push" yourself to "get through the thorns of the rose bush, to experience the beautiful flower of the rose."

Every time I think of some difficult thing in life, I close my eyes, see Dr. Gol, and smile.

Michael Segal

As Michael shared, the difficult things in life and business are often the sweet things.

Step up and PUSH yourself and step out of your comfort zone and start taking clear control of your business finances.

As I read an interview with Andy Stanley the author of the book "the Principal of the Path"

"Is there a disconnect between where you intend to be and the path you chose" . . .
and I will add  . . .for your business and finances?

"If you want to end up in a good place, you have to move in the right direction."

Get moving!!! 

Contact me for a complimentary 30 minute finance strategy call to learn how you can have a solid organized financial foundation set up in 90 days and so I can hold you accountable with your business finances. I look forward to hearing from you.

Complimentary 30 Minute CFO Encouragement and Support Call

Warmly -

Debbie Rosenfelt

Chief Heart Officer

PS . . . over to the upper right corner of the blog sign up to be on the CFO Made Easy e-mail list and receive the "How to Be Your Own CFO Map" on day two.

HOW TO USE A FUN-NANCIAL TOOL

Watch this video to see a great example of a FUN-nancial tool that is the single most meaningful measurement tool in business.  The tool,TTM - which stands for trailing twelve month map.  It's a rolling annual total map that reads instantly and true for every key business indicator. This tool is used to measure the performance of sales, expenses, profits, etc.  The video will share with you the purpose of this GREAT tool, how to use this tool, and the three questions you should ask as you are reviewing the results.

CFO MADE EASY - FUN-NANCIAL TOOL

As I shared in the video, I am PASSIONATE about business and finances. 
I LOVE revealing results that informs you of what is possible for the heart of your business. Transforming financial frustration into financial power.

What results would be revealed on a Trailing Twelve Month map for your business?

Was this video and tool helpful for you and the heart of your business?  Share a comment below or a question, or e-mail me at d.rosenfelt@cfomadeeasy.com.

Warmly -

Debbie Rosenfelt
Chief Heart Officer

HOW CASH IS KING

My husband and I are business partners with my son, Bryan.  He purchased a franchise, in October 2007 and started the business from the ground up.

The first couple of years were financially and emotionally tough.  This was during the downturn of the economy and my son Ken, (Bryan's brother) passed away. 

The business opened in February 2008 with enough cash to operate for the first 8 months, or so we thought with the projections we created.  Revenue was not pouring in as we had projected.  With revenue not supporting the business expenses, Bryan had to stop taking a pay check in June 2008.

The challenge - growing a business to be cash flow positive.  2009 sales were growing at a snails pace and rent was increasing 3%, beginning March 1st.  OUCH!

Bryan trimmed expenses down to the bare minimum.  For this franchise business, there were not very many expenses.  Yet the rent was running at about 45%.  YOWZA!!  That was the only expense left to trim down.

In February 2009, we went to our landlord (at the time, that's another story on a different day) and asked for a reduction in rent. 

YES, you ask, if you don't ask, you don't get.

He said "No", "however you can pay us half rent, and then pay us back with interest at the second half of the year."  We explained that Bryan stopped paying himself in May of 2008 and we needed his help.  The landlord explained times were tough for them as well.  That was the best they could do at the time.  We said, OK, we will make it work, sales needed to grow.

Sales were growing, yet not fast enough to pay the increased rent and salary for the owner.

When July rolled around, the business started paying back the landlord in increments of $1,000 a month, or more when the cash was there.  However, when cash was still tight, my business was able to provide a loan when bills needed to be paid.  I'm not talking much here.  $1,000 here or there. 

In November 2009 when the property taxes were due, there was enough left over at the end of the month to pay the taxes. Here comes December 2009 , at the home stretch of paying back the landlord.  We were not quite there, so one more time we provided a small loan to pay off the balance to the landlord.  I sent him a letter explaining the business was not in a financial position to pay the balance of the interest, yet the principal was paid off.  Whewwww. What a relief. It felt good to ahve that behind us.

We went back to the landlord again in January 2010 requesting a reduction of rent, he conceded and lowered the rent to a very reasonable amount.  From then on the business has been carrying itself with Bryan receiving a pay check again.

In 2011 the business began paying back the loans my business provided.

So last night, Bryan and I sat down to review January's cash #'s to balance the cash account, compare sales from the previous year and see what was left over to pay down the business credit card.  Once we confirmed the cash ending balance, Bryan took a HUGE sigh of relief and said, - let' put $1k in savings, pay down the credit card by $2k and leave the balance in the account for February.

What are the benefits for managing cash daily; peace of mind, the facts jack, (knowledge) the ability to know what is needed to pay down your business credit card or vendors and place money in savings.

Here's how to get started, track cash daily with the 12 month check register tool, and cash management map.  Enter in deposits daily, NO slacking, and transactions daily.  Once you build rhythm and see common recurring monthly charges, such as rent, utilities, loan payment(s), commisions and payroll, make it easy for yourself and copy over to the next month.

What will you learn about your cash needs for your business?

Was this tip helpful?  Leave your questions below or e-mail me directly at d.rosenfelt@cfomadeeasy.com

Warmly -

Debbie Rosenfelt

Chief Heart Officer

The ABC's of the Heart of Your Business Finances

Let's keep this easy. 
What do you need to get started on the heart of your business finances?

Awareness - Make a decision to consciously learn and understand the heart of your finances.

Build Confidence - Create new daily habits to embrace the heart of your finances. 

Clarity - When we are clear about what we want we can create a plan to manifest our financial goals for our business. When we have a good plan there is no way to fail.

What do you need to get started?

Debbie Rosenfelt
Chief Heart Officer

Compassionate support that transforms financial frustration into financial power.

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

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 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.