Meet Greg Jones, the CEO of BookKeeping Express. Jones was VP of Sales for Fransmart, LLC in Alexandria, Virginia, a company specializing in franchise sales, development, and support for the benefit of both franchisors and franchisees. Jones has served in numerous senior executive roles ranging from sales and business development, to executive and operating officer in a variety of emerging enterprises to traditional business units of leading corporations. Jones has been a partner in Fairfax, Virginia-based Garrettson-Jones Properties since 2001, specializing in real estate and Five Guys Burgers and Fries franchise development in Florida.

WashingtonExec: What is the Bookkeeping Express business model?

Greg Jones: Bookkeeping Express is a Franchisor of outsourced bookkeeping services to the 30+ million small businesses in the U.S. and Canada.  The organization has three separate revenue streams, Franchise system, Team Center, and Direct sales channel.  Our business model is built around the need for certified bookkeeping services to the largest business segment in the U.S. and Canada.  Currently, Bookkeeping Express is the only national firm focusing on bookkeeping services and franchising those services throughout the country.  In comparison, Bookkeeping Express is supporting the same business structure as HR Block  put forth towards personal taxes but pointing the services to the small business community.  Bookkeeping Express believes in the concept of a paperless environment and building the system through technology.  Our franchisees complete 85% of the work effort through virtual connection and spend very little time in the clients locations.  Speed, accuracy, low cost, and vital data reporting is what separates Bookkeeping Express from the solo bookkeepers and CPA firms that provide bookkeeping.  Bookkeeping Express opened its Team Center in 2010, to which the Center provides back office support to the franchisees who do not wish to build their own local bookkeeping team (time spent hiring, firing, managing staff).  They can use the Team Center and spend the majority of their time on the front end of their business (business dev., community relations, customer care, and closing business).  Bookkeeping Express will be opening their first Direct sales office in the Washington DC metro area in 2012.  Our direct sales channel will sell directly to the small business community and will help BKE roll out new services and/or test models prior to rolling out to the franchisees.  When it’s all put together BKE will have multiple recurring revenue streams.

WashingtonExec: In the beginning years of the company, how did Bookkeeping Express build a trusted reputation?

Greg Jones: BKE has been in business since 1984 but the current ownership has been in place since 1/09 (franchise model). Our franchise model has been put together and by design, rolled out in a very methodical way.  To achieve success, we knew we needed to bring in good business partners as our franchisees, and we had to build a system that supported those franchisees.   We have built the franchise model from scratch so our reputation for being very upfront with our franchise documentation, our sales processes, and follow through with the franchisees has been critical with building trust.  We have emphasized an open communication with our franchisees and pride ourselves on improving the systems on the behalf of the franchise system.  In reality, our franchisees play a very important role in helping us build the system due to their participation and communication with what is working and what is not.  Bookkeeping Express has monthly calls with franchisee representatives (1 from each time zone) and quarterly CEO calls which provides updates to the franchisees.  Our system provides a delivery system to its end clients so there is a consistency to the deliverable.  This is important to the franchisees and to their clients.  Easy system to follow and a structured process to bring results to the small business owners.

WashingtonExec: During these unstable financial times, what do you think will be the biggest challenge small companies will face during the next five years?

Greg Jones: Five years is too long, I would put it at 1 and 3 yrs.  Small businesses that do not have the capital to continue to build their organizations will be in trouble which is why the banking situation that exists today is such a hot topic.  We must put money on the street so our small business community can continue to be proactive with their business.

WashingtonExec: What will Booking Express look like in 2 years?

Greg Jones: 100 plus franchisees in the system, in 90% of the states within the U.S. along with locations in all Canadian provinces.  BKE Team Center expanded to process all work flow processed by the franchisees. BKE to become the preferred vendor to other Franchise concepts and the CPA community.  Corporate locations in 12 Tier one markets in the U.S.  Having brand recognition through multiple media outlets.  Member of the INC 500 fastest growing companies, and moving into the top 50 of the Entrepreneur Top 500 franchise concepts.

WashingtonExec: What book has made the most impact on your life and why?

Greg Jones: An odd combination of Lombardi, and Who Moved My Cheese!

WashingtonExec: What is the best advice you can give any start-up company/business?

Greg Jones: Most great ideas/companies fail due to being undercapitalized (as mentioned above) so plan on having 3 times the capital that you initially think you need to get your business off the ground.

Source: http://www.washingtonexec.com/2011/12/interview-with-greg-jones-bookkeeping-express-reputations-and-advise/

VIENNA, Va. – (December 22, 2011) – BookKeeping Express was ranked 405 in Entrepreneur’s 33rd Annual “Franchise 500,” the world’s most comprehensive franchise ranking after only its second year of franchising.  It’s the brands first appearance on the list. The nation’s only franchise focused solely on offering certified bookkeeping services also ranked as one of the “Top New” 50 franchises as well as one of the top 100 “Low Cost” franchises.

“This recognition speaks volumes about our company’s accomplishments and viability as an attractive franchise opportunity for today’s entrepreneurs,” said Greg Jones, Chief Executive Officer ofBookKeeping Express. “BookKeeping Express is meeting the growing demand for affordable, professional bookkeeping services in rapidly expanding small business communities across the nation. Being named to a list as prestigious as the Entrepreneur ‘Franchise 500’ further validates our strength and stability as afranchise system.”

The rankings for all 500 companies are determined using an exclusive formula that takes into account objective and quantifiable factors. An independent CPA analyzes all financial data. The most important factors include financial strength and stability, growth rate and size of the system. All franchises are given a cumulative score, and the 500 franchises with the highest cumulative scores become the Franchise 500 in ranking order.

“Franchises are a great avenue to business ownership for those with the entrepreneurial spirit—and they’re playing a definitive role in driving the economy upward,” says Amy Cosper, VP and editor in chief of Entrepreneur. “Unit numbers from the Franchise 500® grew overall in 2010 and 2011, giving individuals a great place to begin investigating some of the brightest opportunities.”

Since launching its franchising program in the fourth quarter of 2008, BookKeeping Express has signed development agreements and opened offices with entrepreneurs in 24 states across more than 145 territories that have been sold and/or in development. Currently, there are 38 BookKeeping Express franchiseoffices open and three license offices open in Canada. The company’s aggressive U.S. and Canadianfranchise development plans call for more than 30 new territories in 2012.

With a collection of franchisees that come from diverse backgrounds, including corporate executives, CPAs, banking executives, and entrepreneurship, BookKeeping Express’ owners share a common goal to provide accounting relief to business owners so they can focus on growing their business.

About Bookkeeping Express
BookKeeping Express, a national company focused on providing professional bookkeeping practices to small businesses, was founded in 1984 in California and grew to over 150 locations through licensing agreements. In 2007, Greg Jones, along with Bob Stocker and Merritt Green, purchased the company and launched the new business model in January 2008. The franchise has grown to more than 35 offices in the United States and Canada. The company is based in Vienna, Virginia.

From check tampering to false reimbursement submissions, employee fraud is becoming prevalent at businesses of sizes, especially with the weak economic environment.

The most recent Global Fraud Study by the Association of Certified Fraud Examiners found that the median loss in companies caused by fraud cases was $160,000 in 2010, with small businesses being disproportionately victimized.

While small business owners may not have the man power to employ a full-fledged fraud detection unit, there are procedures they can implement to curb employee fraud.

“Segregate accounting duties to the greatest extent possible,” recommended Ken Stalcup, certified fraud examiner and certified public accountant at Somerset CPAs. “No one person should be responsible for an entire accounting cycle, meaning no one person should be allowed to approve vendor invoices, prepare checks to go back to that same vendor, sign the checks, post the checks to the general ledger and reconcile the bank account.”

A system of checks and balances should also apply to inventory. “If you are a business that includes inventory, make sure your shipping and receiving departments are separate departments handled by separate employees,” advised Marc Bourne, vice president of Know It All Intelligence Group. He added that annual inventory counts should be done by a third-party vendor or an employee that is not responsible for the involved departments.

In addition to separating duties and instituting checks and balances, business owners should implement new policies and standards of practice in the workplace.

“We are big believers in mixing things up and adding a different flavor to policies and procedures,” said Greg Jones, CEO of BookKeeping Express, a company that provides domestically-outsourced professional bookkeeping for small businesses. Jones recommended instituting new short-term policies like not only requiring receipts but requiring that clients sign-off on meal and entertainment-related expenses.

Business owners must create a workplace culture of honesty and values by setting an example.

“Human beings can rationalize anything,” said Joe Gerard, co-founder of i-Sight, software used to manage investigations of fraud or employee misconduct. “An owner who goes out for steak and three bottles of wine is implicitly creating a culture where this sort of behavior is perceived to be normal.”

Monitoring behavior is key to detecting employees who may be susceptible to committing fraud. “If you notice sudden changes of your long-term employees, such as financial habits, like extreme spending, gambling, borrowing from co-workers, devotion or lack of devotion to work, there may be reason for concern,” warned Bourne.

One of the hardest things for small business owners to do is admit that they are being taken advantage of by trusted employees. But, Jones of BookKeeping Express cautioned “the most tenured and knowledgeable in the organization are the ones who can get away with things.”

The Global Fraud Study found that “frauds committed by owners or executives were more than three times as costly as frauds committed by managers, and more than nine times as costly as employee frauds.”

In terms of detecting fraud, The Association of Certified Fraud Examiners recommended that “organizations implement hotlines to receive tips from both internal and external sources….[that] allow anonymity and confidentiality, and employees should be encouraged to report suspicious activity without fear of reprisal.”

Business owners should strive to educate employees on the cost of fraud and how it can impact everyone’s financial future. Stalcup recalled cases in which fraud has shut down business and left people unemployed. “Fraud can damage a company’s reputation.  Upfront and recurring training should help establish that there is zero tolerance with fraud and stealing.”

If a business owner suspects that an employee is committing fraud, Gerard of i-Sight recommended that management rotate staff to look for inconsistencies and conduct a surprise audit, then have investigators review servers and computers for evidence.

“Get the person to take a holiday, if that isn’t possible then investigate at night or on weekends,” said Gerard. “You don’t want the perpetrator to know you’re onto them until you’ve gathered evidence.”

Read more: http://smallbusiness.foxbusiness.com/legal-hr/2011/12/19/how-small-business-owners-can-curb-employee-fraud/#ixzz1h07JP0bB

Evidence against a young bookkeeper was in the photos she brought to work: her frequent Vegas trips, the $1,000 exotic puppy and $18,000 in house renovations.

She didn’t need photographic proof of her sudden breast augmentation surgery.

All on a $20,000 annual salary.

Finally, her boss became suspicious when she bought a Mercedes — with cash.

“This woman did everything but come to work with a sign on her back saying, ‘I’m stealing your money,’\u2009″ said James Ratley, president and CEO of the Association of Certified Fraud Examiners, an Austin-based organization with more than 50,000 members worldwide.

Not every dishonest employee, of course, flaunts his or her clandestine wealth as much as the young bookkeeper. Ratley said fraud by employees is more widespread than employers realize.

It is difficult to gauge the losses, but a 2010 survey of fraud examiners estimates that businesses lose as much as 5 percent of their revenues to various forms of fraud by employees, from bookkeepers to CEOs. A 2010 survey by the National Retail Federation put employee fraud ahead of shoplifting as the primary cause for retailers’ losses.

“Fraud has grown to epidemic proportions,” Ratley said. “It is so pervasive, it can no longer be ignored.”

Ratley doesn’t have to search his files for examples.

Consider just a few of the frauds that made news in Austin: A couple discovers that their bookkeeper of three decades has stolen $1 million from them when they go to sell their company and retire. A banker underwrites his NASCAR racing team with almost $1 million in phony loans to friends and relatives. A national charity employee steals almost $600,000 by inflating invoices for cellphones and selling the devices on the Internet.

But headlines are the exception, not the rule, for fraud by employees.

Fraud a ‘loss leader’

Ratley said occupational fraud is difficult to prosecute because the risk of punishment is low and managers — concerned about the company’s image or their incompetence in preventing the fraud — often prefer to deal with the crime quietly.

Fraud is a problem for businesses of all sizes, but firms with fewer than 100 employees are twice as likely to be victimized, according to the fraud examiners’ survey.

“Fraud is a loss leader for a lot of small companies,” said Bob Stocker, a founder of Bookkeeping Express, a national company with 33 franchises, including one in Austin.

Too often small firms have the same person writing checks, doing the billing and reconciling the books each month.

The owner is focused on sales or managing the staff or, in the case of a professional, practicing law or medicine, without focusing on the books.

“Doctors, dentists and lawyers make excellent fraud victims,” Ratley said.

If the firm is large enough, the duties of writing checks, billing and reconciling the books should be split among employees, experts say.

If that’s not practical, an outside bookkeeper can be hired to reconcile the books each month.

“It’s not that expensive,” Stocker said. “It takes us a couple of hours , maybe $200 a month.”

At a minimum, Stocker said, credit card and bank statements, preferably with check images, should be sent unopened to the owner, not an employee.

“And really look at them,” Stocker said. “Any credit charges they don’t recognize, call the credit card company and get the backup information.”

Audits aren’t enough

Ratley said an employer shouldn’t assume that the company’s annual audit protects the firm from fraud.

Audits, he said, are just a sampling of a company’s finances to give a picture of the firm’s financial health, not a thorough search for fraud.

“Audits only uncover 13 percent of frauds,” Ratley said.

Tipsters, whether co-workers, vendors or competitors, expose 40 percent of the frauds, according to the fraud examiners’ report.

For that reason, Ratley recommends a hotline for reporting suspicious activity.

Who steals from an employer?

“Most fraud perpetrators are trusted and well-liked,” Ratley said. “The more trust an owner puts in their employees, the greater the opportunity for them to cross the line.”

A picture of perpetrators emerges from the survey of fraud examiners and Ratley’s interviews of suspects.

“Bad people are supposed to look a certain way,” Ratley said. “They don’t.”

Most of them had never stolen before from their employer. Their stories usually share three traits: opportunity, financial need and the ability to rationalize.

Among the common rationalizations: “I’m just borrowing this money. I’ve worked here a long time. They passed over me for a promotion. The company doesn’t care about me.”

In some instances, the employee may repay the money the first couple of times they steal it. Eventually, they become accustomed to the extra cash and can’t stop.

“People don’t intend to steal as much as they did,” Ratley said. “They usually don’t even know how much they stole.”

And they are surprised when they get caught.

“Most of them get caught, Stocker said. “The question is, how long they get to do it.”

According to the survey of fraud examiners, schemes last a median of 18 months and the median loss is $160,000. But nearly a fourth of the frauds involved losses approaching $1 million.

Bad times expose fraud

A sluggish economy exposes many schemes.

“When the economy is good, there is more money flowing. You’ve got more business coming in, so you are more likely to hand off the bookkeeping,” Stocker said. “There’s more money in the checking account. Your costs are going up with revenue, so you don’t notice the higher (fraud) costs.”

When money gets tight, however, it becomes harder to conceal the fraud.

Once the fraud is exposed, the issue becomes trying to recoup the losses.

“Catching them is one thing,” Stocker said. “Getting your money back is another.”

Ratley agrees.

In some instances, the dishonest employee has bought houses or cars or boats that can be sold. Often, there is little to show for the crime.

“People do not steal money to save it,” Ratley said. “They steal it to replace money already spent.”

lcopelin@statesman.com; 445-3617

Tips for preventing or detecting occupational fraud

Separate bookkeeping, billing and account reconciliation functions.

Company ownersshould receive bank and credit card statements.

Establisha hotline for receiving tips of suspicious activity.

Educateemployees on the cost of fraud to the company.

Encourageco-workers to report fraud.

Createa climate of honesty and integrity.

Usecontinuous auditing software.

Rotatesensitive jobs.

Usebackground checks in hiring.

Source: Association of Certified Fraud Examiners/ http://www.statesman.com/business/in-tough-economy-employee-theft-climbs-to-epidemic-1996335.html?viewAsSinglePage=true

Many budding entrepreneurs struggle mightily with that first step – out of their comfort zone and into the unknown. They keep asking people like me whether the time is right, and the truth is that there’s never an ideal time to start your own business. It’s like starting a personal relationship, if you wait for exactly the right time, you’ll never do it.

I’ve talked to many experts, and everyone has his own view of the right personal attributes, and the right business conditions to jump in. In my own view, the recovering economy is ripe for new startups, but successful startups are more about the right person, than the right idea or the right climate. So the real challenge is looking inward to check your alignment with these clues:

1. Running a business is a passion you crave. This is a necessary, but not sufficient reason to start a business now. It’s not the same as “I want to change the world (volunteer for a good cause)” or “I’m tired of the corporate grind (take a vacation).” It does mean you have a compelling new business idea, and a willingness to face risk.

2. You know what needs to be done, and not afraid to make the decisions. This is the right context for being your own boss. You get great satisfaction from overcoming all obstacles, and you have no problem with living or dying by your own decisions. You have never had a problem putting together a plan and making it happen

3. The opportunity to make real money excites you. You have read all the stories of Google and Apple hitting on a great idea, beating the odds, and being worth millions in just a couple of years. You like the idea that most of the money you make will be yours, not just merged into corporate profits.

4. You believe the economy has tilted the odds in your favor. The recent recession has definitely opened up opportunities for new products, and skilled people at lower costs are abundant. Many of the great entrepreneurs of the past started their companies near business recessions and depressions.

5. You get to set the deadlines, and manage your own priorities. You have always felt that you can do more than expected by current bosses, if allowed to do it on your own schedule with your own milestones. Your self-motivation is more effective for you than any arbitrary rewards and even salary increases.

6. You get to do the interesting things, for a change. First of all, the business you intend to set up is your dream, not someone else’s. Within that context, you can delegate or find partners for things that bore you, like marketing, rather than feel that you have been assigned to do the least interesting work.

7. A variety of challenges stretches your abilities to the maximum. If you love to learn new things, and are stimulated by change, you will love the new business environment. Every day is different, from dealing with creative elements, to financial challenges, marketing and sales, and customers of every type.

8. Your office is where you want it. Many entrepreneurs enjoy working from their home, where they are more comfortable, and can interact better with their family. Some like an old eclectic loft downtown, or a local coffee shop to minimize the commute. In these days of global links, you can actually run the business from halfway around the world.

9. What you envision doesn’t seem all that hard to you. In fact, the cost of entry into most businesses has come down greatly in the last twenty years. You can now start an e-commerce site for $100, or develop software applications for smart phones for a few thousand. The right reason to start a business is because you have done your homework, and are convinced that you have the skills and knowledge to do it easily.

10. You are really ready for a second career. This is especially applicable to Boomers and anyone who has had a successful career, but now ready for a new challenge, with a little time on their hands. The good part of having your own business is that you don’t even have to give up your first job to start the second.

If a few of these reasons are calling your name, now is the time to start building your business. There’s no better time, especially if people around you are hesitating due to an apparent fit to my other list. It means you’ll be facing a lot less competition. What are you waiting for?

Source: http://finance.fortune.cnn.com/2011/11/14/10-clues-that-its-time-to-start-your-own-business/

Many small businesses can’t afford an ad agency, or prefer to do advertising and other creative work in-house. It makes agency people jump down my throat, but for many reasons (and after two decades of experience doing it both ways), I happen to think that “D.I.Y.” is right for most startups and many established small companies.

I am not suggesting you try to produce your own TV spots or do major national media buys. I’m talking about creating the kind of print and online ads that are typical of most small businesses.

There are as many schools-of-thought and approaches to ad creation as there are agencies. But for most purposes and companies, following five classic steps is most likely to yield the best possible result:

Write the headline as if it’s the only thing that will get read (because it may well be)

Convey a genuinely compelling message (strong claim, major benefit, irresistible offer). Purely creative “teasers” can be effective, but risky; what may seem clever or hilarious to you might not resonate with others, so tread carefully. And don’t make the common mistake of making your name and/or logo the “hero” of the ad, as they tell the reader nothing. Finally, always keep it short and sweet — imagine you have to shout it to someone on the street  to get her to stop as she’s walking by.

Use strong images and graphics

Like the headline, imagery is meant to pull people into the content. If your ad has photography or other artwork, make sure it’s high quality, that it fits and supports the ad, and that it justifies the space it takes up. Keep the layout uncluttered and easy on the eyes. You may be tempted to proudly show off your whole product line, but a single product (or even a single feature of a product) or a person using it, is probably going to make for a better layout. Show them the rest when they go to your site, visit your store, or contact you for more information.

Use an effective subhead and tight copy

As the name suggests, the subhead completes or elaborates on the headline; think of it as winning five extra seconds with that person walking down the street. If you get her past that to the main body copy, making one powerful point is ideal, though a short list of strong benefits or claims can also be effective. Also gear copy to the size of the ad. Again, don’t try to cram in your whole story, whether it’s a classified ad or two-page spread. The goal is to get the hook in, and reel them into the boat later.

Make sure there is a call to action

This is a virtually inviolable rule. It may be getting the reader to take advantage of an offer, enter a contest, or simply visit your site. But ask the reader to do something. Ad professionals and corporate exec’s often talk about the value of pure “impressions” (like seeing the Coke logo everywhere). But most small businesses don’t live in that world, and — especially with limited reach and resources — an ad without a call to action is a wasted opportunity, like a salesman doing his pitch and leaving without asking for an order.

Use “keying” or other tracking

Advertising is as much art as science, and results are difficult to measure. Using a “key” (special web link, promotional code or phone number, etc.) is usually the most practical and effective way for a small business to measure response. It’s never possible to fully know the impact, though ad reps will tell you about impressions and eyeballs and pass-alongs and all the other reasons you should be excited. But when you are a small business owner writing the checks, if you see that no one came to your special promotional link after running an ad for six months, odds are that’s enough to decide that the ad isn’t effective.

Obviously, going it alone presumes you have the basic resources and skills needed to do effective creative work at a level that’s appropriate to your business, your image, and the type of advertising you’re doing.

All of the technical tools are readily available to just about anyone, but they’re useless without creativity and the ability to write skillfully. If you don’t have people with those capabilities in-house and/or can’t find them, ignore everything I’ve said and find a good, small creative agency to work with. But if you think you’ve got what it takes to create your own ads — as many companies do — beautifully, effectively and economically, then make sure you make ‘em right. Avoid the temptation to get too clever (how many times have you thought an ad or commercial was fantastic but not remembered what it was for?). Never lose sight of your real goals, whether they be direct sales, inquiries, or wholesale/trade prospect acquisition.

Of course, this is a very boiled-down set of guidelines. Advertising is a complex endeavor, with countless philosophies, techniques and opinions. But it’s good to know the basic rules before you break them, and for most small businesses — and many bigger ones — this framework is a good, time-tested place to start.

Source: http://www.cbsnews.com/8301-505143_162-57317700/5-rules-of-small-business-advertising-success/?tag=cbsnewsSectionsArea;cbsnewsSectionsArea.3