By: Jerry Chautin, SCORE business columnist

SCOREing small-business success

The most successful business owners acquire basic financial tools

Those that fail, especially in a recession, lack financial control

Workshop: Small Business Accounting Basics for Non-accountants
When: May 27, 9:30 a.m. to 12:30 p.m.
Where: SCORE Atlanta, 233 Peachtree Street, NE, Ste. 1900
Details: Online at tinyurl.com/cydufq or call, 404-331-0121

“There are critical success factors that will make or break a business,” says George Horrigan, CPA with Tripp, Chafin and Causey, and founder and president of Fountainhead Consulting Group.

Horrigan’s passion for helping small business owners is a catalyst for him to simplify the financial control you must have over your business. “My passion is helping people start and grow new businesses, grow existing businesses and take those existing businesses to the next level,” he says. “The financial (and) accounting area supports everything else in your business.”

If you are serious about succeeding in business, attend Horrigan’s workshop, ”Small Business Accounting Basics for Non-accountants” on May 27. SCORE, “Counselors to America’s Small Business,” sponsors it.

Vince Lombardy, the legendary coach of the Greenbay Packers mused that he would have won every game if the time did not run out. Similarly, many failed businesses would have succeeded if they did not run out of working capital. Financial controls make sure that you know how much working capital you have and how much you need to keep your business afloat. And during this economic downturn, your survival depends upon it.

Recognizing a balance sheet and profit and loss statement is a start. But knowing how to use them will assure your success. The workshop will bring the essential financial tools to life and show how they can increase your profits, control your business and legally minimize your taxes.

“For taxes you want to work on a cash basis,” Horrigan says. But the accrual method may be preferable for some companies to keep tight reins on their operations. “Quickbooks converts financial statements from accrual to cash basis,” he says referring to the popular bookkeeping software program. It allows you to pay your taxes on a cash basis and switch to the accrual method for better financial control.

“Quickbooks and Peachtree are phenomenal,” he says about the two bookkeeping software packages most often used by small businesses. But there are differences that you need to know about. Horrigan will touch on them. In the end, your choice may depend on which system your accountant or bookkeeper is most familiar with.

Ideally, have your financial professional set up a chart of accounts that resembles your industry and the way you do business. Then you can decide how often you need the professional to review your financial statements.

As a small-business owner, you know your products and services. You may even be a whiz at sales and marketing to bring in the business. But you are inviting disaster if you do not have a basic understanding of financial controls. This workshop is designed to prevent disaster.

For details on all SCORE’s workshops, go online to tinyurl.com/cydufq or call 404-331-0121.

About SCORE:
Since 1964, SCORE “Counselors to America’s Small Business” has helped more than 8 million aspiring entrepreneurs and small business owners through counseling and business workshops. It is a nonprofit resource partner with the U.S. Small Business Administration. More than 11,200 volunteer business counselors in 370 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. The Atlanta chapter has 100 volunteers in conveniently located branch offices. www.scoreatlanta.org