May 2026
Volume No. 27, Issue No. 6

Now is the time to talk with your accountant

We like to look at the National Day Calendar and the Chase Calendar of Events to see the various recognitions. Chase states they have over 12,500 entries, ranging from Chocolate Chip Cookie Day to Black Dog Day.

What we don't see is an event that we think is important. May should be "talk to your accountant month". And yet, you probably talked to your accountant in February as they were preparing the tax return for your business. I am not sure why that conversation occurs each year in February, as there is nothing you are going to change about last year.

Having an accountant state that it would have been better if the vehicle or equipment you just bought had been purchased in 2025 is not helpful. We have a suggestion.

Talk with the accountant in May. As you read this newsletter, one-third of your year has been completed. This would be an ideal time to talk about opportunities and challenges for the last two-thirds of 2026. Now you have something that you can change.

I am not sure how February ever became a tradition, but I think it is one that needs to be moved 90 days later to May.

Article of the Month - No more tears

Inventory - often the largest investment in a business that sells products. We can easily see that money invested in inventory is a lot better than money sitting in a bank account. However, that is only true if the inventory has a good turn rate.

This month's article covers aspects of inventory that every small business needs to consider as they determine how much to invest.

Article of the Month

Book of the month - Mindset

Mindset by Carol S. Dweck, PhD. is relevant to all small business owners as the book gives guidance to how we approach the ownership and management of our businesses. I have had many experiences over the past 30 years as an owner talking to other owners about a challenge or opportunity within their business. Too often, the primary issue is the mindset of the owner. This book can help.

Book of the Month

Internet Tool for Your Business - Price Rounding

As the article of the month deals with inventory, our Internet tool for May relates to the pricing of products. Too many businesses determine the price of a product or service based on the cost. This means the exercise of determining the price is simply multiplying the cost by a certain multiplier factor. One example of why this is wrong is shown in the situation where the business buys the item from one vendor at a specified cost and later from another vendor at a lower cost. Does this mean the selling price should go down? I don't think so.

There is a class I often teach on how to develop a pricing strategy. This link to Pricing Strategies will take you to a PowerPoint and audio to help you implement a better way of pricing.

Each month we highlight one of the 47 free tools on the Profits Plus website; we call them "calculators". While some provide analysis by numbers and ratios, some are assessments and others are self-examination questions. Many are downloadable while others, because of the complexity of the calculations going on behind the scene, are a part of the website and allow you to print your answers. None of them require you to give any personal information nor are there any "cookies" tracking you or your information.

Internet Tool for Your Business

Staff Incentive for Your Business - A special project

Think about how things get done in many small businesses. The owner of the business has an idea and determines what needs to be done to make it happen. The details of what to do are handed to one or more employees, and told to proceed with the project.

What if there were, instead, a conversation in which the owner asked employees for ideas on how to solve a problem or make the business better? What if the employee were then allowed to address the issue as they saw fit?

Of the two situations, which one do you think is going to build more employee pride? And when completed, recognition in front of coworkers works great, as well as bragging about this employee as you talk with customers.

We want to recognize A Carrot A Day by Adrian Gostick and Chester Elton, whose book provides the basis for each month's incentive idea.