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Reducing Energy Costs

11 Mar

MANUFACTURERS FIND A COMPETITIVE EDGE IN UTILITIES

What would you do with monthly electric bills in excess of $30,000? This is a reality for many manufacturers who are using large machinery and equipment to heat buildings or produce product.  And quite simply, a cost of doing business.  I’ve actually seen bills significantly higher than that.  With raw material costs and direct labor creeping up, utility expense can be one area where business can find relief.  In many cases utilities are one of the top three expenses on an income statement.  Just the smallest cut in kWh rate from an electric supplier can mean thousands of dollars to a manufacturer’s bottom line.  With collaborating resources, my team has saved thousands of dollars in utility costs for  manufacturers throughout Pennsylvania.

It’s easy, painless, and quite honestly…a no brainer.  For credit worthy businesses, my team of energy specialists will evaluate cost savings opportunities and provide a number of solutions to consider.   The cost to the small business is nothing and the savings can be significant.

Get your free analysis of your utility savings today!

 

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4 Easy Steps to Prevent Business Fraud

9 Mar

A recent study estimates that a typical organization loses 5% of its annual revenue due to occupational fraud and abuse.  And nearly all companies are susceptible to risk according to the Association of Certified Fraud Examiners.   Recent high profile cases have been beneficial as more executives are becoming aware of white collar crimes.   Yet many Small Businesses don’t take the necessary precautions to prevent being victimized.

As Ben Franklin once said, “An ounce of prevention is worth a pound of cure”.

 

Fraud usually begins on a small scale and then escalates when undetected.  An undercover Pennsylvania State Trooper has recently seen an increase of embezzlement cases in very rural areas of western Pennsylvania.  One of which was a small Catholic Church in New Castle, PA.  Many of the victimized companies, reports this Trooper, were shocked that it happened to them.

Here are 4 easy steps for organizations that may identify fraudulent activity or perhaps even prevent it.

  1. Owners & Managers must learn Business Acumen – Many Small Businesses heavily rely on their Accountants to detect such activity within their organization.  But, at the end of the day, it’s the Small Business that is ultimately accountable.  So, a little education in this area will go a long way.
  2. Ask the Accountant for more – Many Accountants provide the typical Business Services…quarterlies, payroll and year-end taxes.  But that doesn’t mean they can’t do more.  Ask the accountant to periodically review the financials for suspicious activity.
  3. Get a Business Health Check-up – A comprehensive analysis of your business’s financial and operational position can be an early detector of financial misbehavior.
  4. Be Alert – Owners should be awake at the wheel and be mindful of “red flags”.  Pay close attention to detail and have good people skills.  Sometimes it is those who are trusted the most that become the biggest disappointment.

In a globally competitive world and while businesses slowly recover from the recession, it’s more critical now than ever that businesses don’t fall victim to fraud, embezzlement or any type of financial mismanagement.  Statistics show that white-collar crimes are on the rise.  And now many Universities and Schools have added one or two forensic courses to their Accountancy programs while Conferences on Forensic Accounting and Fraud Detection are gaining popularity.   These are all signs of an alarming trend adding more to a business owner’s plate.

So, don’t be part of the headline in tomorrow’s paper.  Take action immediately and make the necessary adjustments to prevent an unnecessary financial hardship.  It starts with leadership and can end with compliance, business acumen and a stronger, healthier organization.

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Control Cash Flow with This Simple Tool

7 Mar

Many small businesses struggle with managing cash flow….especially in the economic climate as of late.   I recently visited a company that manages cash flow on a daily basis….as in they look no further  than TODAY!  Some weeks they’re not sure if they’ll make payroll.   It’s no wonder that they are having critical money management issues and will soon be forced into layoffs.

A simple tool commonly known as a 13 week rolling cash-flow can be very useful to companies in such a cash-flow predicament.  It forces management to look at the bigger picture over three months; and clearly illustrates with ample response time to a cash shortage problem.   This tool can be developed very easily in excel with a little spreadsheet experience  or a customized template that can be purchased.   In either case, some resources will be needed.  But it can be the smallest of investments that can yield the greatest of returns.

So, if you’re needing to manage cash-flow a bit better, you may give consideration to a 13 week rolling cash-flow tool.  It could be the difference between making payroll or sleepless nights followed by stomach ulcers.   It’s all about choices; Just saying….