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Forecasting - Part I: StatTools

Forecasting - Part I: StatTools

A forecast is a planning tool that uses various methods to build predictions of the future based on past and present data. Businesses use foreacasts for determining how to allocate resources. According to the book Practical Mangement Science by Wayne L. Winston and S. Christian Albright,, forecasting methods can be categorized into three groups: 1) judgemental methods, 2) regression methods, and 3) extrapolation methods. In this blog, I will cover the use of extrapolation to

Budgets - Part I: Childcare Centers

Budgets - Part I: Childcare Centers

Keeping a budget for your childcare center is crucial. A budget allows you to plan how you will operate your business, taking into consideration expected income and expenses during a 12-month period. A budget helps you develop your strategy for making money during a fiscal year (Jack, 2005). A budget is created once a year. Once you set your budget for the year, use it as a tool to measure your performance. By evaluating your budget monthly, you can see if your actual costs a

Internal Controls for Small Businesses - Part II: Purchasing Cards and Time & Expense Reimbursem

Internal Controls for Small Businesses - Part II: Purchasing Cards and Time & Expense Reimbursem

If your company uses procurement cards (p-cards) and has staff that submits time and expense (T&E) claims for reimbursement, you should be aware that these are two primary avenues for employee fraud. According to the Association of Certified Fraud Examiners (ACFE) 2014 “Report to the Nations on Occupational Fraud and Abuse,” expense reimbursement fraud accounts for 16.7 percent of all fraud uncovered for small organizations (small is defined as an organization with fewer than

Internal Controls for Small Businesses - Part I: Vendor Management

Internal Controls for Small Businesses - Part I: Vendor Management

As you may be aware from the news lately, “occupational fraud” (also referred to as “white collar crime”) can occur anytime and in any organization. Size does not matter. Fraud can occur in small businesses just as it can occur in the multibillion-dollar organizations. According to the Association of Certified Fraud Examiners’ 2016 “Report to the Nations on Occupational Fraud and Abuse,” a typical organization loses five percent of its revenues in a given year as a result of

Chart of Accounts, the Backbone of your Accounting System

Chart of Accounts, the Backbone of your Accounting System

When you think about accounting, the first thing that comes to mind is probably “financials statements,” such as the balance sheet, income statement and statement of cash flows. But to get to these financial documents (the end-product), you first need to think about your chart of accounts (COA). The chart of accounts is comprised of the various accounts used in your business. Some may describe the chart of accounts as “the backbone” of your accounting system. Is a chart of a

Accounting Tips for Small Businesses

Accounting Tips for Small Businesses

Running your own business is challenging on its own. Having to manage your accounting and finances can add to that challenge. Here are some quick tips from Accounting for Small Business Owners (https://www.amazon.com/Accounting-Small-Business-Owners-Tycho/dp/1623155363) to help you manage your business’s finances better: Obtain a federal Taxpayer Identification Number (TIN). Use a separate checking and credit account for your business. Never commingle your personal expenses