Jobs and Interest Rates are Both “Looking Up” Plus a Look Around the Web

Job numbers came in strong, and this is good. This seems to indicate that the Fed will be much more excited about increasing rates. The question is, what will happen when the fed increases interest rates again? And how much will they increase them? 25 basis points? 50? If the fed comes in with a large enough rate hike, this could push some people back over the home buying line. People who were about to afford it, won’t be able to now.

My biggest concern is, how will this affect me? I’m kidding. Sort of. The real question for us as business owners, is will people be willing to spend and invest, or will they pull back.

I can tell you all day, how it’s even more important to focus on your accounting, in hard times, to be sure you can weather the storm, but try convincing the typical business owner of that. The first place businesses usually cut back are in the areas where the benefit is not immediate, and tangible. It’s easy for businesses to thrive when the economy is good. It’s the businesses who pay careful attention to the financial part, who can weather a bad economic storm. The reality is that many businesses who are doing well in a thriving economy, could actually be doing much better. They just don’t see it, because they are blinded by easy profits, and having money in the bank.

Most businesses and business owners only become concerned when the money runs out, or they get their tax bill, and wonder why there isn’t enough cash to pay the taxes? Where did it all go? All too often the answer, unfortunately is in the first place I look. The equity section.

Years ago I had this very conversation with a client. When we ran his statement of cash flows, there were over $100K in owner draws. The client told me this was impossible. So I drilled into the numbers to get the details. One particular transaction stood out. It was a check for $75,000. That jogged his memory. He’d needed that money to pay off a personal loan. Then I sent him the bill for that little memory jog, because in those days I was charging by the hour.

Here’s a look around the web:

From the Fundera Ledger…

Cash Flow Positive: What It Is and Why It Isn’t Profitability

5 Bookkeeping Apps That Will Actually Change the Way You Do Business

How to Perform Payroll in QuickBooks

Reviewing the 3 Best Expense Management Apps

On the BQE Blog…

How to Get New Subscribers All Week Long without Lifting a Finger

How to use Mailchimp to Nurture Relationships with Your List

Pinterest Strategies for Marketing Your Business

On a Personal Note…

I had an experience this past week, which made me pause and consider, how we define the word, “Friend.” It is my belief that social media has lead us to define this term far too loosely. I wrote an article about it. It probably comes as no surprise, that I find writing to be therapeutic.

Friends

Have a great week everybody! Let’s make “real” friends, and let’s make money!

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