UK Accounting Reference Dates For Private Limited Companies

UK Accounting Reference Dates For Private Limited Companies
When a private limited company is incorporated companies
house advise the company of the accounting reference date
and a set of financial accounts are required to be made up
and submitted from the day of incorporation to this
accounting reference date. The accounting reference date is
set by companies house as the last day of the month 12
months after the date of incorporation.

For example a company registered on 7 January would have an
accounting reference date of 31 January the following year.
Financial accounts are required for the period from 7
January one year to the 31 January the following year.

The financial accounting period for a limited company which
has been trading in previous years starts on the day after
the accounting reference date and continues until the next
accounting reference date. In the example above the final
accounts including profit and loss account, balance sheet
and notes to the accounts including audit report where
required would be prepared from 1 February until 31 January.

The accounting reference date can be changed by a limited
company by sending to companies house form 225. There is a
time limit on when the form can be submitted which in any
financial year is the day before the accounts are due for
delivery to companies house.

There are a number of reasons why the directors of a
limited company might wish to change its financial year end
although in the vast majority of cases the financial year
is not changed.

Common reasons for changing the financial year end date
would be to bring the year end date into line with other
business interests such as an associated company. Seasonal
and trading factors may make one month end more appropriate
or the company might wish more time to prepare a particular
set of final accounts although it can be a problem if the
date is changed more than once in a 5 year period.

A significant reason for changing the financial year end of
a limited company would be to bring the company financial
accounting period into line with the tax year as tax rules
change from year to year and accounting and tax alignment
simplifies the tax calculation as only one years tax rules
would apply instead of two tax years rules when the tax
year end is straddled.

For limited companies in the UK the practise in recent
years has been for tax rules and capital tax allowances
changes to be announced in the budget each year which is
the third week of March and the tax rules to be applied
from the 1 April the following year. An accounting year in
line with the tax year end would then be 1 April to 31
March each year.

A new private company filing its first set of annual
accounts must do so within 22 months of incorporation. In
subsequent years the financial accounts need to be
submitted to companies house within 10 months of the
company accounting reference date. Companies house normally
send a reminder of when the accounts need to be filed 6 to
8 weeks prior to the deadline date.

Companies house automatically impose an escalating scale of
civil penalties on private companies for the late filing of
the annual accounts as follows

Up to 3 months late the penalty fine is 100 pounds

Over 3 months and up to 6 months the penalty fine is 250
pounds

Over 6 months and up to 12 months the penalty fine is 500
pounds

Over 12 months the penalty fine is 1000 pounds

The accounting documents to be sent to companies house
which are required to be prepared in a specific format and
in addition to stating the registered office of the company
and the company registration number for identification
purposes must also send

Profit and loss account or income and expenditure account
for a non profit organisation.

Balance sheet signed and dated by a company director
stating the company asset and liabilities balances.

Directors report signed by a director or company secretary
describing the companies activities and also including for
companies not classified as small and exempt a business
review of future performance.

Auditors report signed by the auditor unless the company is
exempt from audit under the small companies exemption rules.

When a small private company submits abbreviated accounts
and takes advantage of the exemptions then the accounts
must also contain the statutory statements as notes to the
accounts advising the basis and exemptions under which the
annual accounts have been prepared.

----------------------------------------------------
Terry Cartwright at DIY Accounting designs accounting
software that automates private company accounts
http://www.diyaccounting.co.uk/companyaccounts.htm and tax
returns for self employed at
http://www.diyaccounting.co.uk/selfemployed.htm

Complete Responsibility Permits Full Freedom

Complete Responsibility Permits Full Freedom
The topic of ownership seems to be a hot topic in recent
coaching and other conversations. Specifically, what you
own or are responsible for and what you are not.

In this area, I find very little middle ground. There are
those of you who choose to own everything means that you
feel responsible for what happens around you in most
directions. And then there are those of you who feel no
sense of ownership, irrespective of what those around you
desire. Both sides are equally frustrating to the other.

Here's what taking on too much ownership looks like:

As a Leader: You solve everyone's problems rather than
encouraging them to come up with their own unique
solutions. While this may be the easiest approach, it in
no way enhances the growth and creativity of your staff.

As a Service Provider or Sales Executive: You assume what
your customer wants, wearing yourself out to please or take
care of their every need. Simple questions could prevent
hours of unnecessary labor and annoyance.

As a Parent: Your children's challenges become yours. As
with the Leader, you take on the responsibility rather than
teaching your children the value of finding their own
resolutions to normal childhood predicaments. What does
this teach your kids about responsibility? What type of
adults are you forming?

As a Spouse, Partner or Friend: You take on ownership
practically before a problem occurs. Anyone comes to you
with a dilemma, and you immediately leap forward with the
perfect solution. How does that honor the other individual?
What if you instead asked more questions and persuaded
those closest to you to come up with creative approaches?
Your relationship would be more balanced and they would
unfold self-sufficiency.

You can see challenges with each of these scenarios and how
each blocks a successful outcome. The opposite is equally
debilitating.

When you take too little ownership:

As a leader: Few individuals who avoid ownership become
leaders, yet some slip through. Your focus is on the
problem rather than the solution. You doubt yourself, so
ask for others opinions to the point of exhaustion.

As a Service Provider or Sales Executive: Again, it's
always someone else's fault, or the market, weather, etc.
This is no way to learn. Others are succeeding where you
may be failing. Learn what they are doing differently or
more effectively, ask your client or customer what you
could have done better. Be realistic where you were not in
your best mode and find a way to improve. This is your
constant goal.

As a Parent: Sadly enough, you may believe that any
dilemmas that arise are your children's fault and that it
has nothing to do with you. You are thus teaching them
blame, instead of responsibility. Take a look in the
mirror as your children are more often than not emulating
their parents. Where are you sabotaging their development?
The answer is probably the same way you sabotage your own
development.

As a Spouse, Partner or Friend: You are not dependable,
most likely the type of partner that cancels plans at the
last minute, doesn't commit, or is wishy-washy. Since
those who don't easily take ownership for their actions
find solace in being surrounded by similar beings you may
not even notice the lack of depth or dependability in your
relationships.

The key to ownership is be conscious and not in autopilot.
There are times you might consciously choose to be
responsible, and there are times when it's best to share or
delegate the responsibility. You may take on more
responsibility in certain areas than in others.

Just because you are a responsible person doesn't mean that
you take on the ultimate responsibility in all aspects of
life. This is exhausting, and prevents those around you
from growing. And hopefully, no sense of ownership is no
longer an option for you. Enjoy your discoveries and make
wise ownership choices this week.

----------------------------------------------------
For the sake of keeping your career fresh and on track,
would you like to enjoy a weekly shot-in-the-arm from
Master Certified Coach Ann Golden Eglé? You can sign up
for her Success Thought of the Week at
http://www.gvsuccesscoaching.com .

When Your Clients No Longer Want to Pay You On Time

When Your Clients No Longer Want to Pay You On Time
There's a question that pops up in my email inbox at least
once a week, from clients asking, "Why are some businesses
far more successful at getting paid on time than others?"
Having worked with clients and Fortune 500 corporations
over the years, I've heard this question asked over many
cups of coffee. In my experience, the reason why a small
business can easily leave their competition in the dust is
because they have identified and understood better then
their competitors exactly what their clients will do
anything and pay anything to solve, and they provide it.

So, you not getting paid on time? You're not alone. With
companies and individuals all now holding on to their money
for as long as possible, asking a client for payment is a
challenge you're likely to come up against as a
self-employed professional.

I used to sweat it out, waiting for checks to arrive on
time. You know that feeling, when you sort through the mail
looking for the envelope of your client? Then, I came to a
point with my business that I would no longer accept checks
for the programs we teach. So many of my clients enjoy
re-enlisting in our programs, that it became a no-brainer
to accept credit cards that we could bill on a re-occuring
3 month cycle. My clients wanted to pay with credit cards,
and I provided them the means.

Now, sometimes I will hear my clients tell me that the
charitable pledges weren't paid by their members, or the
condo dues are late again. When it comes to not paying on
time, frequently there has been just a clerical mistake, or
the loyal client will at least pretend that there has been
one. Peoples lives are so busy, that they forget to pay
you. This often means you will have to go easy on them and
let the client look into-or pretend to look into-the matter
and schedule a follow-up call. Now, the attitude to take in
the first call is that, since you are, in effect, business
partners, and the client's failure to pay you promptly is
probably a mistake that can be corrected. If you still
value this client, and you need to make a second call, you
should then push for closure without being nervous or
confrontational.

Remember you are merely following normal business practices
to collect your payment from a loyal client. So, follow
these four steps to get your hard-earned money paid on time.

1. To appear professional and confident on the phone, have
the invoices in question in front of you. Print their
statment and highlight the amount due, their payment
history and thank your client for any advanced payments.
Make notes on the past due invoice of any positive
responses they received from working with you or your
products. Note any special payment agreements as well.

2. Call your client during normal business hours so that
the client doesn't have an excuse that bookkeeping staff
aren't available. And of course, call the day that you
expected payment. Remember, you have no leverage with your
client's accounting department, partner or spouse. Your
agreement is with your client, and it's THEIR job to get
you paid NOW!

3. Have this conversation on the phone, and stand up when
you speak to your client so that your voice sounds clearer.
Be ready to ask for a date when you can pick up the check.
Or, consider getting a merchant account so that your past
due client can give you a credit card number right on the
phone. If you use an accounting software like Quickbooks,
you can even set up a re-occuring payment plan using their
credit card. That way you get paid, and your client can
continue enjoying their life.

4. You also need to resist the suggestion that your client
just doesn't have the power to pay you at this moment. Yes,
you can sympathize with your client, but don't get drawn
into their personal situation.

Overall, your goal here is to make it as easy as possible
for your client to pay you on time. If you keep attracting
deadbeat clients, perhaps you need to re-define who your
ideal clients are.

----------------------------------------------------
Kim Schott, your Global Client Communication Expert, is the
author of the Keys to Client Communication System, the
step-by-step, paint by numbers client attraction program to
attract more clients in less time. To receive your weekly
how-to articles on consistantly attracting more local and
global clients in less time, visit
http://www.SchottCulturalConsulting.com

Management Headaches? Take Two Aspirins' and Buy Good Construction Software

Management Headaches? Take Two Aspirins' and Buy Good Construction Software
The amount of information and data that is collected,
processed, and interpreted on a daily basis by contractors
is tremendous. The best way to handle this incredible load
is with effective and efficient construction software.

Today, contractors can employ large numbers of craftsmen,
which creates a complex and time-consuming payroll process.
Accurate project estimates, schedules, and cost and time
control activities require significant amounts of data for
maximum results, and cannot possibly processed properly
without effective construction software.

Without construction software to assist them in their daily
activities, many contractors are small businesses that
might be overwhelmed by the task of data information
management. These businesses tend to focus more on
marketing, sales, and production rather than record keeping
and data information processing. The result could be
financial loss on a project or even financial ruin for the
business.

However, computers and the proper accompanying estimating,
project management and construction software allows the
contractor the opportunity to manage this information
stream. Construction software can process, manipulate,
store, and print information, but the result of the output
is only as good as the value of the data input. Costs for
hardware and effective construction software are easily
within the reach of virtually all contractors' budgets.

While many contractors have computerized their financial
accounting, a lesser number have automated the project
management functions. Managing a construction project
incorporates several activities including:

* Construction Estimating

* Scheduling

* Job cost control

Construction estimating involves taking off project work
quantities and determining the cost of labor, material,
equipment, and overhead. It is a time consuming process
that is prone to errors because of the many parameters.
Proper construction estimating software will improve the
accuracy of the final bid document and significantly cut
the amount of time needed to prepare the estimate.

The construction estimating software incorporates several
estimating tools:

* Computer aided design

* Process math calculations and formulas

* Data base of past performances that improve forecasting
and costing estimates

* 'What if' analysis to study the estimates under different
assumed future events

Construction software CAD programs enable the user to
prepare computerized drawings for the project that can be
read to perform quantity takeoffs. Many software vendors
supply CAD programs. The other three tasks are performed by
two different approaches to construction software: general
application and industry. Usage is pretty evenly divided
between the two.

Planning and scheduling construction software enables the
contractor to:

* Plot planned project schedules

* Perform critical path method calculations

* Plot and manage resources

* Plot and manage cash flow

* Update project in a timely and accurate manner

Ideally, the scheduling construction software program
interfaces with the construction estimating function so the
two are performed in conjunction with each other.
Unfortunately, many construction software vendors provide
one or the other, but not both, even though the programs
often interface.

There are several factors to consider when selecting a
planning and scheduling construction software program:

* Number of activities to input

* Ability to update program

* Resource algorithms available

* Popularity of program with clients

* Ability to interface with estimating software

* Ability to interface with control function

* Ease of data entry

* Number and types of reports available

Job costing construction software provides a report on the
status of a project and associated overruns or under runs
based on input data such as labor time and quantities in
place. The computerization of this function should be
simple and linkable to your other estimating and proposal
construction software. Ideally, the contractor should
select accounting, estimating, and project management
construction software that totally integrates.

At the least, the contractor should not settle for
construction software that cannot link to all construction
software management functions.

----------------------------------------------------
Phillip P Gilliam is the President and CEO of Discover
Software Inc. Phil 58, currently lives in Florida with his
wife and youngest daughter, is a native of Ohio. He went to
Wright State University and has over 37 years experience in
marketing, construction software development, business
management, and finance. http://www.easyestimating.com

The Five Greatest Misconceptions About Networking That Will Have You Spinning Your Wheels

The Five Greatest Misconceptions About Networking That Will Have You Spinning Your Wheels
Are you tired of going to one networking event after
another with little or no results? Here are several of the
reasons that you may not be getting the results you are
looking for.

1. "The purpose of going to networking events is to collect
as many cards as possible and to build a huge Rolodex."
Many business owners and independent professionals believe
if they just meet enough people, great things will start to
happen. Your purpose in attending networking events should
be to develop relationships. Simply collecting cards and
shaking hands will not bring business.

2. "The purpose of going to networking events is to sell
my products and services." This approach is guaranteed to
ensure that you will not see much benefit out of your
networking activities. The quickest way to turn off
networking partners is to attempt to sell. Your focus
should be one thing only and that is to meet potential
networking partners and to learn about THEIR business
first. Then talk about your business with the thought in
mind of looking for ways to work together to refer business
or create an alliance.

3. "If I meet someone at a networking event and agree to
be a referral partners, then it is likely that I will
receive referrals." The only way that you will receive
referrals from networking partners is to develop a
face-to-face mutually beneficial relationship that
generally develops over time. Your first step when you
meet a likely partner should be to get together for lunch
or a cup of coffee and get better acquainted. From there
it may take anywhere from one to five or six more meetings
to begin to reach a level of trust and confidence to do
business together.

4. "I can maintain relationships with hundreds of people
as referral partners." The reality is that you can only
effectively manage around 20 relationships on an in-depth
basis. To meet with key partners enough to build the type
of relationships that will bring new business takes a
tremendous investment in those relationships. You should
break down your list by A relationships, B relationships
and C relationships. The A group is the one you want to
spend the majority of your time with.

5. "If I find a great referral partner it will stay that
way forever." You should constantly be evaluating your
referral partner list and focus on those that are most
productive. Relationships change for many reasons, and you
can find yourself investing your time unwisely. Keep track
of where your business is coming from and invest your time
accordingly.

If you avoid these mistakes, you will be able to spend less
time networking and more time in building relationships
that will produce results!

----------------------------------------------------
And are you ready to learn more about how to take action?
Then I would like to offer you free access to my FREE audio
class The 5 Step Marketing Plan Generator. You can get your
instant access at http://www.GuaranteedGS.com/audio.html
From David Eissman and GuaranteedGS.com

Scripophily Collecting Themes - Part I

Scripophily Collecting Themes - Part I
There is a thriving market in old stock certificates due to
their beauty, uniqueness, historical significance, rarity
and, surprisingly, their affordability.

Though most certificates (even from a century ago) can be
purchased for under $100, the sheer number of different
certificates available (thousands), not to mention the
expense of the rarer ones, precludes anyone from trying to
collect them all.

For that reason, and due to personal preferences, people
tend to give as gifts or to collect stock certificates by
theme. These are a few of the more popular themes:

1.Industry - Railroads are popular industry themes. There
were a great number of them and they literally created the
infrastructure that allowed the United States to develop
into a unified economic, cultural, political and societal
entity Even within the Railroad category, however, most
people focus on sub-segments such as the first electric
traction railways ( trolleys) from a hundred years ago or
all the small lines that consolidated to create a larger
Railroad system. Other industry examples are aircraft,
mining, oil, autos, retailers, banks, or any "industry" you
define.

2.Geography - It is fun to see the name of your city or
state on a certificate. These collectors usually enjoy
doing a little research and reading up on companies and
locations they identify with or recognize. There are many
hundreds of old certificates with town, county or state
names in the company name, e.g., Maricopa Mica Mining
Company (1890's) or Pennsylvania Salt Manufacturing Company
(1927).

3.Vignette - "Vignette" is the collectors' term for the
picture(s) on most certificates. They are usually quite
detailed artwork created from etchings. A collector might
choose, for example, animal vignettes (including American
Eagles, foxes, dogs, horses, cattle, doves, cats and many
others).

4.Family Relationship - If your last name is Morrison, you
could have a beautiful, framed, authentic certificate from
1865 for "The Morrison Family Oil Company" hanging in your
den. How about the Long Dock Company (1860's) or the
Custer Channel Wing Corporation?

5.Time Period - Lovers of the Old West might like The
Colt's Patent Fire Arms Manufacturing Company, The John B.
Stetson Company or the Abercrombie and Fitch Company (they
were actually important purveyors in the old days too).

There are many other possible themes (autographs, famous
people, famous events, years...). And many certificates
can fit in more than one theme, so there is no end to the
satisfaction of creating a fine collection, but also the
excitement of picking up on a new direction.

In any case, the collecting of these increasingly rare
historical documents is a growing, rewarding pastime that
is engrossing to pursue and fun to share with others (as
you show them your 1865 Barnstable Bank and expound on
commerce during the Civil War).

----------------------------------------------------
Larry Crain is a collector, author and dealer in
Scripophily (the collecting of antique stock certificates).
Images, values, more articles and research tools for old
stock certificates can be found at
http://www.RealStockCertificates.com . Old company and
industry research information can be found at
http://www.RealStockHistories.blogspot.com .

MLM Prospecting: Creating a Win-Win Outcome

MLM Prospecting: Creating a Win-Win Outcome
In any business endeavor, a win-win outcome is always the
most satisfying and productive. It certainly beats the
alternatives - win-lose, lose-win, or (heaven forbid!)
lose-lose - in which one or both parties walks away feeling
an assortment of negative emotions, possibly including
disappointment, anger, resentment, and a desire to throw
crockery against the wall.

What do we mean by win-win when it comes to finding new
partners for our network marketing business?

For the prospector (you), a win probably means acquiring a
new business partner with the following attributes: easy
to work with, motivated, determined to succeed, reliable
and accountable, upbeat, honest, hardworking, and so on.
Of course, you would probably also want your recruit to
have some free time and enough money to get started.

For the prospect... well, we really don't know what a win
would be for her, do we? We could make an assumption and
guess. We could assume that she just wants to make a lot of
money. But what if we guess wrong? What if her heart's
desire is to help people and make a difference in the world.

The only way we can know for sure what's going through our
prospect's head is to talk with her -- ask questions,
listen closely to the answers, ask more questions, and do a
lot more listening.

One word of caution, though: When interviewing a prospect,
it's very tempting to listen just until she mentions some
problem your product or opportunity might help solve. And
then... (sound of bugles) YOU'RE OFF AND RUNNING! Bending
her ear about how wonderful your company is and how much
she's going to LOVE what the products will do for her.

But telling why YOU think your opportunity is the greatest
thing since sliced bread is not the goal. The goal is to
reach a win-win outcome, and there's more to it than just
presenting your favorite features and benefits and assuming
that's what your prospect wants, too.

If you're truly dedicated to win-win, your goal is to reach
a deep understanding of what a win would be for her and
then honestly assessing whether or not your opportunity
would create that.

If it's not a good fit, let it go. Thank her for her time
and move on.

On the other hand, if you believe your opportunity is a
match for her, go ahead and explain to her why you think
so. Be sure to connect the dots between her specific
problems and how your opportunity can address them.

Then she signs up, right?

Not quite. Actually, there's yet another critical step you
both must take before reaching a win-win outcome.

Recently, I started reading a book that really gets into
the whole win-win strategy, "The New Conceptual Selling" by
Stephen E. Heiman and Diane Sanchez. (Although it was
written mainly for business-to-business salespeople, most
of the principles the book lays out are applicable to
network marketers, too.)

It describes three stages of decision-making in the sales
process.

Stage 1: The decision-maker (your prospect) comes to a
better understanding of the situation she's facing. (This
is where your question-answer dialogue helps her.)

Stage 2: The decision-maker explores her possible options
and solutions. (This is that other critical step I
mentioned, and it's where many network marketers falter.)

Stage 3: The decision-maker puts it all together and picks
the best option for herself.

Why do I say that many MLMers falter in the second stage?
The answer is that we naturally want OUR option to be the
only one the prospect considers. But the person sitting
before us must be free to consider ALL her choices, or her
final decision will never be satisfying to her. (By the
way, this is a common problem with many salespeople, not
just network marketers.)

Plus, people know when they're being pushed or manipulated.
Throughout this whole conversation, you've been creating
rapport and building trust. If you suddenly start pitching
your solution as the only one, your prospect will close up
again before your very eyes. She might start talking about
how she needs to think a few things over - and maybe she'll
get back to you in a couple of weeks. Maybe. In other
words, you just lost her.

Or if you do succeed in manipulating her into agreeing to
your solution without giving her a chance to think about
her other choices, she's likely to feel buyer's remorse
down the road and secretly resent you for it forever.
That's certainly no way to begin a healthy business
relationship, is it?

If you want to play a positive role in your prospect's
decision-making process and achieve your win-win goal, you
must make it totally clear to her, both in your words and
in your actions, that you support her right to explore all
her different options.

The good news is, if you truly understand her situation and
genuinely believe that your opportunity is her best
solution, and if you have effectively communicated why you
think that way, chances are pretty good that your prospect
will end up agreeing with you. And then you will get to
enjoy the most treasured of all outcomes.

Your new business relationship will be launched in an
atmosphere of mutual respect and commitment, with the
positive expectation that it will continue indefinitely.
You and your prospect will each get what you want, and
you'll both feel terrific about your decisions.

----------------------------------------------------
Liz Monte is particularly intrigued by new trends in
network marketing that could potentially transform the
industry's negative image and lead to the widespread
acceptance of a kindler and gentler approach to direct
marketing. She invites you to visit her website at
http://www.wisenetworkmarketer.com

My Very First Board of Directors Meeting...

My Very First Board of Directors Meeting...
I could make up a terrific story about this, but I won't
lie - I had avoided (as in postponed, side-stepped,
procrastinated) having a board of directors until now.
Frankly, I had visions of having a group of old, cranky,
humorless men telling me what to do.

Of course I was just being lazy, too. I would rather be out
making products and building a business than sitting around
trying to make sense out of Excel files, charts and graphs,
and essentially being bored to death in the process.

Our company, however, has reached the point where "proper
governance" is important...even necessary. The "let's do it
because we all think it's a really good idea" mentality had
to go. We really needed to be able to show that all of our
shareholders were represented in our decision making - and
represented fairly.

So I asked my business mentor and close friend, who knows
and understands our industry very well, to be the first
member of the board of directors. Now let's be clear - I
didn't ask him because he's my "friend." That would have
shown very poor judgment, and frankly, friends don't always
make the best business advisors. I asked him because he's
already the one person who advises me on all "board-type"
matters, anyway!

So imagine this: I felt like a "big grown-up boy" in long
pants, carrying my briefcase filled with notes, reports,
Excel printouts, etc., to my first board of directors
meeting on Friday, February 15, 2008, at 2 PM ET.

If you are picturing a large dark paneled room with a long
table, think again. Outside our "boardroom" were chickens,
squirrels, birds, and other creatures - large and small,
wild and domesticated. Inside the "boardroom" (besides the
board members) were a dog (a.k.a. The Wolf), two cats
(a.k.a. Puffy and Fluffy), and five children. Yes, we were
in my friend's home, gathered around his kitchen table.

Maybe someday we will meet in that dark-paneled room with a
long table. But I don't care how big my business gets - I
hope we can continue to meet with the same "family
feeling." There was a certain calmness, almost a serenity,
about the entire meeting. There was nothing stuffy or even
formal, although we did follow the rules of a proper
meeting.

So my first board of directors meeting started with a brief
lesson about what exactly happens at board meetings! My
friend and mentor gave a simple, five-minute explanation of
what board meetings were all about...and in the process, he
completely changed my preconceived ideas. That's what I
really want to share today.

What Do You Think Is Supposed To Happen At Board Meetings?
- Company planning strategy?

- Hiring strategy?

- Financial planning?

No, no, and no. Those are the things that I THOUGHT were
supposed to happen at a board meeting, but was I ever
wrong. The things listed above are the territory covered by
company management...not the board of directors.

The board of directors has exactly one responsibility, and
that responsibility is...

GOVERNANCE

Just like a sovereign nation, each company has what they
call "articles of incorporation." These "articles" are
actually the laws - or rules - that the management of the
company must abide by.

So the whole purpose of the board of directors is just to
make sure those laws are followed. The point is for the
board to make sure the decisions that are made in the
day-to-day operation of the company are really in the best
financial interest of the shareholders.

Of course, not ALL of the decisions that are made by
management are the right decisions - anyone can be wrong,
it's inevitable. But the decisions have to be made within
the laws laid down in the articles of incorporation. They
can't be sneaky decisions, they can't have malicious
undertones, and they can't be decisions that line the
pockets of management at the expense of shareholders.

Here is just one example of the type of responsibility
shouldered by the board of directors:

The board does not decide who is hired to fill a position.
The board simply "empowers the management" to pursue that
hire. It's still management's job to make the final
decision about who is hired to fill the position. The board
only acknowledges that they understand why the position has
been created and filled.

The board of directors GOVERNS. It does not strategize.

So in the end, I didn't need all those spreadsheet
printouts and detailed notes. What I did need was exactly
what I got - a lesson in how to think about shareholder
value, while simultaneously running the company.

----------------------------------------------------
The Mystery CEO is a young entrepreneur who started a
company now doing close to $2 Million a year right in his
DORM room!
Now he lets you watch over his shoulders as he learns more
about entrepreneurship. You can even listen-in when he
interviews CEOs who manage $100 Million+ companies!
Read his entrepreneurship blog right away for all the
entrepreneurship training you'll ever need!
http://www.MysteryCEO.com