WHAT ARE THE TYPES OF ENTITIES

Super EXCITED right now.  Just completed an interview today with Cindy Ashton at Speaker Stardom to support her peeps on creating a solid organized financial foundation.

I went through six of the seven steps of the "How to Be Your Own CFO" 
(Click on the above link to grab your own copy.)

I thought why not share it with those who want to start a business, or who are currently in business  and want to create a solid organized finanacial foundation and gain a CFO's perspective to learn what you need to support a thriving business.

Ready, for creating a solid organized financial foundation?

Step #1  Create an entity:

So What are the types of business entities?

There is no one perfect choice for any business. You must determine which of the options best fits both your current needs and your business plans. Some of the things you’ll consider include:

• The cost and complexity of creating and maintaining the business structures
• Your current income tax situation
• The potential risks and liabilities of your Business
• Your investment needs and income projections

The different business structures include:
• Sole proprietorship
• General Partnership
• Limited Partnership
• Limited liability company (LLC)
• S-Corporation
• C-Corporation

I will provide information on the three highlighted in red since I have personal experience with the three. 

The Sole proprietorship is the most common form of structure in the US for one-person businesses. You don't have to register with the state, pay annual state fees, nor do anything else special other than obtain the required business licenses. You are the business; and while this generally makes paperwork much easier to do, remember that you may end up paying more in taxes with this default option, and you'll be personally liable for all business debts and obligations.

The pros - it's easy and simple, you just need a business license, and of course a separate bank account and business credit card.

The con's - You may end up paying more in taxes and you'll be personally liable for all business debts and obligations.

Limited Liability Companies (LLCs) were a gift to small businesses. Not only are they less formal structures than corporations to manage, they provide their shareholders with the liability protection of corporations and the flexibility of deciding how the business will be taxed.

By default, a single member LLC will be taxed as a sole proprietor and a multi-member LLC as a partnership: the profits or losses will flow through directly to the members. However, you can elect to have an LLC taxed like a Corporation, either C or S. With these tax elections, you get all the benefits of being taxed as a corporation together with the greater simplicity of managing a less formal structure.

Although an LLC does not require the same formal paperwork as a corporation, bear in mind that the liability protection of the company is based upon the fact that it is an entity separate from its owners. To prove that this is the case, the company must be run professionally. All professional organizations document decisions; so don't forget the paperwork altogether.

The pros - LLC's provide their shareholders with the liability protection of corporations.

The con's - Single member LLC's will be taxed as a sole proprietor and a multi-member LLC as a partnership: the profits or losses will flow through directly to the members.

Corporations (S Corp and C Corp) Unlike partnerships and sole proprietorships, corporations are independent legal and tax entities. From both a legal and tax perspective, the company is completely separate from the people who own, control, and manage the company.
The primary difference between an S-corp and a C-corp is how the profit or loss of the corporation is handled.
The C-corporation pays income taxes in its own right. Shareholders of the C-corp pay taxes only on what they take out of the corporation in the form of salaries, bonuses or dividends. The S-corporation, on the other hand, may pay some state and local tax in its own right, but it is primarily a pass through entity, passing the net income or loss to the individual shareholders/owners, who report it on their personal taxes.
A C-corporation exists only in law. Like an individual, it can incur debt, own property, sue and be sued. It files taxes as a separate entity (like an individual) and continues its existence despite changes in ownership or management.
Perhaps the best aspects of a C-corporation are the large number of tax deductions that can be taken and the range of benefits that can be offered..

There are only three ways to get money out of a C-corporation prior to dissolution:
1. as W2 wages;

2. as a dividend, which is a distribution of profit which has been taxed at the corporate level, then is taxed again at the individual level;

3. as a loan, preferably to another entity that will use the money for other investments.

An S-Corporation is a legal entity that is designed for small businesses, where the owners typically need most of the money earned to pay for living expenses. The IRS allows the shareholders of an S-corp to take money out of the corporation two ways:

- as W2 wages, with the attendant payroll and income taxes;
- as a distribution, with attendant income taxes only. No payroll or self-employment tax is owed on this money

The pros - An S corporation, or S corp, lets you avoid self-employment taxes or equivalent payroll taxes on some of the profits you take out of the business.  Often times, in fact, an S corporation saves a business owner thousands of dollars a year in self-employment or payroll taxes. 

The cons - There are restrictions on how distributions are split among shareholders; and unlike C-corporations, there are severe restrictions on who can hold the shares of an S-corp.

Should I form an LLC (Company) or Corporation?

Let’s assume that you’ve decided limiting your personal liability and saving money on taxes is a good idea. Now, you have two main choices – form a Corporation, which is the more familiar approach, or try out the new streamlined Limited Liability Company (LLC). Which do you choose?
Like anything, there’s no one "right" choice. However, there are a few guidelines you can follow.

When an LLC might be a better choice

The LLC is simple and flexible, and therefore makes the better choice for most small businesses. It also combines the liability protection of a corporation with the flexibility of deciding your tax election. This is especially useful if your business will hold real estate that is increasing in value. You certainly want the liability protection in case you are sued by a tenant. However, in a C-corporation, when the property is sold the gain will be taxed as ordinary income at the prevailing tax rate for the corporation. If the gain is significant, this rate can be quite high. Moreover, if the gain is distributed to the shareholders in the form of a dividend, the proceeds will be taxed again at the individual level. In an LLC taxed as a partnership or sole proprietorship, the gain will flow down to the members as passive income to be taxed as long term capital gains without payroll or self-employment tax or double taxation.

This is just a brief overview of a few choices.  I recommend you have many a conversation with your CPA, or contact Legal Zoom to ask questions to help you understand which entity will be right for you and your business.

The more time you spend on research and learning, the more informed you will be.  Repetition, repetition, repetition is my motto and it's how we learn and absorb new information.  Ask plenty of questions and do not take any answer for granted.

Another great resource for you to learn about entities is:

Lower Your Taxes Big Time 2013/2014

Questions??? Reach out to me at d.rosenfelt@cfomadeeasy.com.

Warmly -

Debbie Rosenfelt

Chief Heart Officer

 

 

 

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.

BABY STEPS - STEP 1 OF A 4 STEP ACTION PLAN FOR MANAGING CASH

I was reminded today in a blog post by Jeff Walker, success happens in baby steps.  I needed that reminder today, to remind myself I am on a journey to building my business and it doesn't happen over night . . although I would LOVE the success to happen yesterday. A heartfelt YES, and you?

So I thought, why not create a post that supports leaders, entrepreneurs, business owners and CEO's a baby step action plan for managing cash.

Step #1 - Manage cash daily. 

How you ask?

With the daily, 12 month cash register. (You can purchase it to your right for $150, equal to $12.50 a month, which is equivalent to approximately 3-4 latte's)

Why manage cash daily? This is the path that provides direction for your financial goals for your business or life. This is so you know where you are financially at all times, and so you see where you are heading. Mapping out cash coming in and going out daily, allows you to see and plan what is needed. You know when monthly recurring bills and loan payments happen, so map it out and plan how much cash you need daily..

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, you need to know how much cash you have on hand at all times. YES, that means creating a new muscle, a new habit if you want to figure out 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 forces you to look at and think of what is coming up next. If it is next week, the end of the month, next month or next quarter, etc.

When I was working with privately held corporations, as the CFO I worked and planned cash daily, always looking at each day, each week, each month and each year. My team worked updated the financial information in the accounting software. AR, AP, monthly transactions, etc were worked on thru out the month.  Cash and financials are two different animals.  Cash is cash managed daily and financials share the whole picture, the financial story for the business every single month.

Even now, with our gym business, we manage cash daily with the daily cash register. It is similar to a checkbook yet in Excel, that holds 12 months of info in one workbook. Each month has it's own tab, and each worksheet is linked to the next. Every day we look at cash and manage it daily. Each day's deposits are mapped out and updated daily at the end of the day or the next morning. Recurring payments such as payroll, monthly payroll taxes, quarterly payroll taxes, trainers commissions, monthly loan payments, purchasing supplies and advertising are mapped out in advance and updated as needed. By doing this we are able to make a easy financial decisions on the spot. One example, how much to transfer to savings each month.  We use the cas placed in savings for the bi-annual property tax payments or plan for additional equipment purchases.  I also balance the monthly bank statement to the daily cash register which is a check and balance system for balancing cash to QuickBooks at the end of the month.

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

The key to success for your cash is to create simple, easy, baby step habits that will open the door to new possibilities for you and your business.

Get in to action, purchase the daily cash register and get cracking on managing your cash daily. If you have any questions please leave below or e-mail me at d.rosenfelt@cfomadeeasy.com

Warmly -

Debbie Rosenfelt

Chief Heart Officer

CFO 411 - WA Dept of Revenue Audit - Are You Prepared for an Audit?

Last weekend I began preparing for an audit that was scheduled for Tuesday with the WA State Dept of Revenue.  This was for the gym business my son owns, also my business partner.  I was told by John Hamilton, the auditor the business was randomly chosen for this audit.  There are times that businesses are manually chosen.  In this case we were just one of the computer sample test businesses chosen.

I was told the audit is to make sure we paid WA State use tax on all assets purchased for use in the business as well as confirm we are paying the correct tax on memberships, products, and services, such as personal training, tanning, etc.

The audit began with the first month of business which was February 2008 through the first quarter 2012.

I was ready.  I audited all the monthly reports before the auditor did to make sure we were taking the promo referral fees as a deduction for excise and sales tax, water sales deducted from retail sales and sales tax was being paid correctly. 

In addition Iwas informed he would review all the purchase of assets of the business to make sure use tax was paid.  I trusted we handled it properly.

The findings . . . we did not pay sales tax on four asset items.  The asset purchases were on items made outside the state of WA.  We will receive an assessment around the end of June and the gym will owe approximately $2k in use tax from 2008 from assets purchased.  All other sales tax testing was in good order.

This was a good experience, I learned a lot and the audit went smoothly.  I had all the receipts for the asset purchases that showed what we did pay sales tax on and what we did not. I presented them to John, he checked it off his list, or wrote a comment "use tax owed".

The lesson  . .

1). Create a solid organized financial foundation so when you receive a letter from the state or IRS you will be prepared immediately for the audit and you will be able to show your receipts.

2.) Make sure to have all of your asset receipts on file, titled and organized by year.  Electronically or paper.  This will provide the support you need when they ask for the receipts.

3.) Organize all of your invoice and sales receipts by month, by year.

4.) Keep all Dept of Revenue reports and payments by year in a folder.

5.) Audit your records or have your bookkeeper audit your records and review them quarterly.  Less surprises along the way.

6.) Do not panic . . the auditor is there to perform their job, they are just like you and I .. human and need to get the work done.  In my case the audit was quite pleasant and I asked questions and learned a lot.  The audit is based on the rules of the state legislature that was voted in by your representatives.

7.) make sure you have cash stashed in the savings for times when you owe past tax so you do not have to scramble to figure out how you are going to pay the tax bill.

Are you ready for an audit?  Use the above tips to set yourself up for success.

Questions, comments, leave them below or e-mail me at d.rosenfelt@cfomadeeasy.com.

Warmly -

Debbie Rosenfelt

Chief Heart Officer

CULTIVATING A FRESH PERSPECTIVE - Managing Business Finances

Recently I was given another copy of the "Seven Spiritual Laws of Success" by Deepak Chopra.

Law #4 is the Law of Least Effort.

I noticed as I was reading the "Law of Least Effort"  I felt a knowing, a settling into a feeling of familiarity that I have experienced the law of least effort many times. then I thought . . . oooohhh. .  the law of least effort certainly does apply to managing business finances . .

This is not so much about "doing it", it is about a place of "being" a deeper underlying message.  So I invite you to STOP for a moment, read and hear what is possible with the "law of least effort:.

Deepak shares - "The Law of Least Effort is based on the fact that natures intelligence functions with effortless ease and abandoned carefreeness.  This is the principle of least action, of no resistance.  This is, therefore, the principle of harmony and love.  When we learn this lesson from nature, we easily fulfill our desires.

If you observe nature at work, you will see that least effort is expended.  Grass doesn't try to grow, it just grows. Fish don't try to swim, they just swim. Flowers don't try to bloom, they bloom.  Birds don't try to fly, they fly. this is their intrinsic nature . . .

And it is human nature to make our dreams manifest into physical form, easily and effortlessly.

Natures intelligence functions effortlessly, frictionlessly, spontaneously. It is non-linear, it is intuitive, holistic and nourishing.  And when you are in harmony with nature, when you are established in the knowledge of true self, you can use of the law of least effort."

Whenever you seek power and control, you waste energy. Did you know that fear, frustration and overwhelm comes from our thoughts of "we do not have control" . . those thoughts take up a lot of energy and are a waste of pure energy.  . 

So today, on this gorgeous Saturday (at least it is in the Pacific NW, Edmonds, WA) spend time in nature and notice how birds just fly . . . effortlessly.  Flowers just bloom effortlessly, and grass is growing effortlessly. . . .

and ask yourself, what would I need to calm my mind and allow the law of least effort to guide me with stepping forward and taking action with making a commitment to self . .dare to dream how to see what you dream for your business through numbers.  YES . . dream what would it be like to see a solid organized financial foundation for your business with effortless ease.

There is something that has stopped you and keeps stopping you from moving forward . . . let it (fear, frustration, overwhelm) all go . . the law of least effort tells you anything is easy.  .

what ever thought you hold in your mind . . know it is true . . when you think it is easy. .  your right .  . when you think it is hard… you are right

The law of least effort is easy when we allow it to be..  .

Managing your business finances is easy . . when you allow it to be . .

I am here to help you, guide you and make it safe for you. .  . I promise.  when you see what is possible for your business through numbers you will ask yourself.  . . WOW. .  I had no idea this was possible.

Schedule a complimentary 30 minute finance call to learn and test out how safe it would be to develop a fresh perspective on how to build a solid financial foundation.

Complimentary 30 Minute- How to Build a Safe Solid Organized Financial Foundation

Enjoy being with nature!

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.

FRIDAY'S STORY TO INSPIRE - LEARN, STUDY, EXPLORE AND PRACTICE

Friday's story to inspire share a few insights from Bob Proctor.  I appreciate Bob's philosophy to learn, study, explore and practice life, everyday.  When I received that belief download, the light bulb clicked and I GOT IT!!.  . When we see through the lens of practice and explore we allow ourselves to be with where we are we give ourselves permission to not struggle.

One aspect I would LOVE for you to walk away with today, allow yourself to explore, learn, study and practice EVERYDAY, without making yourself wrong.  Our minds, yours and mine, defined success for us.  We now have the opportunity to redefine success and you do that by exploring, learning, through study and practice.

Today is Finance Friday,(my one day a week I work on my finances) now GET out there, practice organizing and updating your finances.  That first step is all you need.  One step, one moment, one day at a time.

Enjoy Friday's story to inspire!

 Focus on all the Reasons You Can Get What You Want

Ray Stanford entered my life when I was working in the fire hall in Toronto at age 26, exactly 50 years ago. I was earning $4,000 and I owed $6,000 and it never even entered my mind that I could get out of debt. He encouraged me to take an honest look at the results I was getting. He said "Bob, you keep talking about not having a formal education and using it as an excuse for getting poor results." He then said, "Those are only reasons why you're not getting what you want. Set those aside and start to focus on all the reasons you can get what you what." Then he gave me Napoleon Hill's book, Think and Grow Rich.

He said, "Bob, if you will make the commitment to do exactly what this book says and exactly what I suggest, I'll help you change your life." I didn't really believe I could, but I believed he believed I could. And it was his belief in me that inspired me to begin to study. One year later, I was earning $175,000 a year and, from there, I took it to over a million a year. I didn't know what was happening to me, but I was beginning to realize a lot of the things that I had been thinking weren't true. I thought some people were lucky but others weren't. I was to find out that you and I have exactly the same potential.

Study, Study, Study

I then got a hold of Earl Nightingale's condensed narration of the Napoleon Hill book, Think And Grow Rich on a record. I began listening to that record every day. It was listening to Earl's voice and the information he was sharing that caused me to want to go to work with him. I moved my Family from Toronto to Chicago and joined the Nightingale-Conant Corporation. It was only after I got there that I realized I had a double win. I wasn't only going to work with Earl Nightingale - I would also work with Lloyd Conant. Earl and Lloyd became my 2 coaches. I loved working for them and I got an education that you couldn't buy. They literally originated the self help business in recorded fashion that we know today. In time, the Nightingale-Conant Corporation became the largest distributer of self help programs in the world, and I was working there with the people that originated it. Earl Nightingale taught me how to study. He said, "Don't just read the book, study i t. Attempt to understand the idea the author is attempting to communicate in each paragraph. To do that you might need to study that paragraph for a month."

Take the Lid Off Your Mind and Let it Soar

Lloyd Conant taught me to take the lid off my mind and let it soar. He said, "Bob, nothing is big or small, except our thinking makes it so. No one alive knows what we're capable of doing. Go after something big. Even if you miss, it can be exhilarating."

Know You Have a Magnificent Mind

It was there that I was introduced to Val Van De Wall. Val and I became great friends and he shared one idea with me that literally changed my life. It was a diagram of the mind. He explained we think in pictures but no one has ever seen the mind so when we think of it, we become confused. There is no order in the mind. A doctor friend of his came up with the original drawing. I refer to it as the Stick Person and I've shared it with people all over the world. If I were to be coaching you, I'd teach it to you.

Val introduced me to his coach, Dr. Harry Roder. Harry knew more about the mind than anyone I'd ever met. I'd spent countless hours with him and I began to understand exactly how the mind functions. In fact, Dr. John Mike from Florida said I taught him more about the mind in 1 year than he had learned in 4 years of medical school and 5 years of psychiatric training. I found that interesting because I had merely taught him what Dr. Roder had taught me.

These 5 men helped me answer a huge question . how and why did my life change? Without any formal education, without any business experience, in less than 5 years, I built a company that operated in 7 cities and 3 different countries and I really didn't understand how I had done it. They taught me what I had changed and how I had accomplished what I had accomplished. It was this magnificent knowledge that triggered the enormous desire in me to teach this information to as many people as I could. But I had one big problem . I was quiet and shy.

Believe You Can Do What You Believe Others Can Accomplish

I was afraid to stand up and ask a question let alone stand up and teach. It was at that point in the late sixties at the Hyatt Hotel in Chicago that a man named Bill Gove walked out on a stage and literally captivated an audience of 500 people. Merely by sharing information with them, he had that audience in the palm of his hand. I stood there thinking, "If only I could do that, then I could teach what I've learned." But the thought of it scared the daylights out of me.
At that point, I flashed back in my mind to a recording of Earl Nightingale's that I had listened to a thousand times. He said, "Now right here we come to a rather strange fact. We tend to minimize the things we can do, the goals we can accomplish, and for some equally strange reason we think other people can accomplish things that we cannot. I want you to understand that that is not true. You have deep reservoirs of talent and ability within you that you can bring to the surface and achieve all that you desire."

If you had asked me if I'd understood it, I probably would've said, "Of course!" But here I was watching Bill Gove do something I thought I couldn't. It was at that point that I started hearing the recording in my head and I realized if Bill can do it, I can do it. I switched my thinking to, "If I could do that, I could help people all over the world change their life." And it suddenly dawned on me that we are capable of doing anything. I'm not going to just do that, I'm going to get the man on the stage, Bill Gove, to teach me. and he did. Today I'm able to do what he did and get on the stage and share this valuable information. Bill Gove and I remained friends for over 35 years until he passed away a few years ago.
Pass It Along

All of these men are gone but their legacy lives on, through me and all of the other people they helped. That's how my life changed. These people taught me to earn millions of dollars and invest it back into a business that has helped millions of people. These lessons have allowed me to help people who were in financial trouble become prosperous and companies that were struggling grow into viable organizations. Any way a person can be helped, I've seen it happen because the answers are within us. And, because of what these great men taught me, I was able to pass it along.

Bob Proctor

If Friday's story inspired you or not leave questions or comments below. 

If you need support with organizing your business finances or want to explore your DREAMS for your business, I see what is possible for your business through numbers.  Contact me for a 30 minute complimentary CFO Finance strategy call at d.rosenfelt@cfomadeeasy.com

Warmly -

Debbie Rosenfelt

Chief Heart Officer

TUESDAY'S CFO TIP - ORGANZING YOUR FINANCIAL RECORDS

Welcome to today's easy CFO tip, to help you organize your business financial records.

Today's tip is about setting up file folders for your business for 2012.

This past weekend I created 2012 file folders for my businesses financial records and my clients.  I picked up manila folders and I have a label maker and I created labels for:

Checking statements

Savings statements

Credit card statements for

            American Express

            Bank of America

A/P paid

2012 Deposits.

I made it easy by placing my business name at the top and then placed the description below.

For example:

Financial Mapping LLC (Insert your business name here)

2012 Deposits

An additional tip for deposits, photo copy the deposit slip and bank checks received before taking it to the bank.  Tape or staple the bank receipt to the photcopy  confirming the deposit was made, and stick it in the folder.  Anytime you have a question for a spcific customer payment you are able to go to the file folder.

Also any payment received from third party vendors, such as PayPal or a credit card company, print off the receipt and place it in your payment folder.  You will then have all deposits in your account nicely organized.

Make sure to add a tick mark or some type of indicator that you entered the deposit in to QuickBooks.

This was Tuesday CFO tip.  Was this helpful and easy?

Leave a comment, question or suggestion to let me know what easy financial tips you would like to hear about at the bottom of this blog.

Debbie Rosenfelt

Chief Heart Officer

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.

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