If Your Books Have A Category For “Worms,” You Could Use Our Bookkeeping Help
I recently met with a client named Molly (not really), who owns one of those “glamping” businesses up in the mountains (really), and she was struggling with making shrewd business decisions based on the financial reports her accounting system was providing.
“I’m just not sure which of our offerings is most profitable,” Molly said, as far as you know. “We offer hiking trips, fishing trips, hunting trips, rafting trips, even zip trips. But which are the winners, and which should we think about cutting?”
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“Zip trips?
“Yes, of course, trips down our zip line. Those are very popular,” Molly said. Then, she looked back down at her reports. “At least, I think they are!”
I thought I’d spotted the problem.
“I think I’ve spotted the problem,” I said. “It’s your chart of accounts.”
“Oh?
“Yes,” I continued. “It’s detailed. It’s accurate. But it doesn’t seem to be very helpful.”
I pointed out to Molly that she really only had three revenue categories: “Tent Rentals,” “Beer Sales,” and “Trips.”
“If you broke the “Trips” category out into the revenue you’re getting from the different kinds of excursions you offer, your reports would tell you in an instant which were the big money-makers, and which were the least profitable.”
“Oh!” Molly said, or again, might have said, if this were a real story and not a made-up example. “That’s a good idea!”
“And your expense categories seem a little random, too. For instance, you have a category for Bears, and another for Worms. What’s up with those?”
“Well, it costs us money to do Bear Mitigation, both on hiking trips, and in camp. Shouldn’t I account for that? And Worms, well, we need those for the fishing trips!”
I told Molly I understood, but that, like her revenue categories, her expense categories could be reorganized to give her better information about how her business was really doing – and how she could make adjustments so that it could do even better.
To make a long fake story shorter, Molly’s not the only business owner who might be well-served by taking a fresh look at their chart of accounts.
The right chart of accounts can not only tell you what’s really going on in your company, but it can also arm you with the information you need to make the smart decisions that lead to your business growing and thriving.
It’s not an uncommon problem. Molly had simply added categories when something new came up, or when she had an expense that didn’t fit into her other categories. But she hadn’t really looked at the overall organization of the chart for some time.
If you know a business owner like Molly – someone whose firm could benefit from a new look at their bookkeeping and their chart of accounts – send them our way! Your Friendly Bean Counter (FBC) (me) is ready to help!
Discussion Questions
- 1How much are you spending on Bear Mitigation each month? Express your answer using a bar chart – or, for extra credit, put all the bars in the shape of bears, thereby creating a cool-looking and totally useless Bear Chart
- 2Estimate which excursions Molly offers which lead to the biggest Beer Sales. Is it fishing trips? Hiking trips? Hiking trips with bears? Again, use a bar chart. Or, for extra credit, a Beer Chart
- 3Would your business benefit from a fresh look at your chart of accounts, and would you like your Friendly Bean Counter to help you come up with just the right organization?
Don’t forget: at DK/RK Services, you’re always “more than a number.” We WANT to take care of your bookkeeping, professionally and personably, so you can focus on running and growing a great business enterprise! Please check out our many enthusiastic FIVE STAR online reviews (Yelp, Google, Facebook, you name it). We look forward to earning our next great review from YOU.
You know someone who could use valuable bookkeeping insights… or, at least, a smile.
You know you do.
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(Offer void where prohibited, such as in Worms, Nebraska or Plenty Bears, South Dakota. Deadline does not apply to entries received before the deadline. Best of luck!)
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Howl-dy! I’m Sadie.
Dottie is my person.
Sadie’s Paw Prints
Your Fur Buddy Might Really Be Your BEST Buddy
Speaking of camping (see above), this week I’m going to bark about a true story that happened on a camping trip, a few years ago.
This is Sadie, Dottie’s fur buddy and four-legged overseer, and the story I’m referring to happened several years ago, to a friend of Dottie’s. Actually, it happened to the friend’s wife’s sister, but that’s not the point.
The point is that dogs are more than awesome companions and shedders of fur. Your dog might actually save your life!
This anecdote occurred long before “glamping” was invented – back when all you two-leggers had was plain old camping. In fact, for some families who were stuffed into too-small camping trailers, you might have called it “cramping.” Heh heh. A little canine humor there.
Anyway, this family was camped out in the mountains, and Mom and Dad had the bed in the trailer, while the kids happily spread their sleeping bags under the stars.
They’d brought along the family dog, a heroic mixed-breed named “King,” and it’s a good thing they had… because early the next morning, the kids were saved from a rattlesnake by King’s quick thinking and brave action in barking his head off and driving the serpent away.
This is only one of many stories you hear all the time about brave canines who save their families from house fires, or intruders, or any number of other calamities. We dogs are fierce friends of our families, and doggedly brave in defending them from disaster.
So think about that the next time you feed your dog. Pet her. Thank her for saving your life. Even if she hasn’t done it yet. The day may come!
Bow, wow!
Non-Profit Spotlight
Education And Health Care: What The World’s Kids Need NOW
Want to make your charitable contributions really count for children all over the world?
You can’t put your donation dollars to better use than to help Angel Covers.
At DK/RK Services, we’re proud to be long-time supporters of this worthwhile organization, and of the work they’re doing all over the world to provide the two most important things children need: Education, and quality Health Care.
For instance, if you take a look at the dreadful numbers associated with child trafficking in the world, you’ll be just as appalled as we are. So through Angel Covers, we’re helping to do something about it.
With the organization’s GATE Program (Girls’ Advocacy Through Education), Angel Covers works tirelessly to help keep third-world girls in school, and off the streets. And out of the clutches of traffickers.
We’re very proud of our support of another cool program, the Vill-Angel Clinic in rural Kenya, where kids can get health care and medicine they would never have been able to get before. Angel Covers is the major sponsor of the clinic, and of the dreams of the practitioners who founded it.
Won’t you join us in supporting these amazing causes?
You can learn more, and donate or volunteer, here:
https://angelcovers.org/
We offer our hearty thanks… and you’ll thank yourself, too, for doing this much good in the world.
Thank you!
