How To Give Positive Feedback

Don't ever underestimate the power of positive feedback. We are quick to point out to someone when they make a mistake. Sometimes we forget to acknowledge them when they do something right. Giving positive feedback can be a powerful tool for employee motivation. Here's how to use it most effectively.

- Do it now. Positive feedback is too important to let slide. Say something right away.
- Make it public. While negative feedback should be given privately, positive feedback should be given publicly. Do it in front of as large a group as appropriate.
- Be specific. Don't just say "Good job, Sally." Instead say something like "Hakim, that new procedure you developed for routing service calls has really improved our customer satisfaction. Thanks for coming up with it."
- Make a big deal out of it. You don't want to assemble the entire company every time you give positive feedback, but do as much ceremony as the action warrants.
- Consider the receiver. It is important to consider the feeling of the person receiving the recognition. For a very shy person, thanking him in front of his workgroup is probably most appropriate. For another person, you might hang a banner, balloons, and streamers in the department area.
- Do it often. Don't wait for the big successes. Celebrate the small ones too.
- Do it evenly. Big successes need big recognition; small successes need smaller recognition. If you throw a party for every small success, you diminish its effect for a big success.
- Be sincere. Don't praise someone for coming in on time. Don't congratulate someone for just doing their job. People will see right through you. Really mean it when you give positive feedback.

Accounting - Debits And Credits Explained

When you considered becoming your own boss you probably did not think you would be learning an entirely new language just to do so. But accounting terms are some things that most every business owner will need to get used to. Two of the most common accounting terms - debits and credits - are explained below to help you understand how they work in business.

Changes In Asset Accounts
The things that your company owns in business such as cash, cash equivalents, furniture, equipment, machinery, and land are assets. You list each account category and keep running totals of their balance so that you can report them on the Balance Sheet. Assets have a debit balance. To record an increase to this account, enter the amount as a debit in your journal. A corresponding credit is entered to show a decrease in an asset's balance.

Changes In Equity Accounts
Equity is the value of your company to its owners and stakeholders. Equity accounts carry a credit balance. When you reinvest profits or inject additional funds from owners the account increases with a credit entry on your books. To reduce the balance, record a debit to the Equity account.

Changes In Liability Accounts
The total outstanding debt that a company owes its vendors is called a liability. These are debts that can be categorized as short or long-term. To show an increase in liabilities, enter a credit in your journal. As payments are made to decrease the balance you can show this by entering a debit to the Liability account.

Changes In Expense Accounts
Expenses are the costs that you incur in operating your business. They are reported on the Income Statement and carry a debit balance in the accounting journal. To show a change in these accounts enter a debit to reflect an increase the balance and credit when payments are made to decrease the balance. Some examples of expenses are advertising, insurance, payroll and rent.

Changes In Revenue Accounts
All sources of income that your company earns or receives are considered Revenue. These accounts carry a credit balance and are increased by entering the amount as a credit transaction in your journal. A reduction in revenue is done by creating a debit to the revenue account. Sales and donations are examples of revenues.

Balance Sheet - Different Types Of Assets

An asset is anything, tangible or intangible, of value which a business owns or controls and which can be converted into cash. Assets can be of two types: current and long-term assets.

Current Assets
These make up the first major component of a balance sheet. These assets are composed of items that are either in cash terms already or can be easily converted into cash terms within a year, if, for instance, a company decides to wind up its operations.
Examples of current assets are as follows:
1. Cash And Cash Equivalents: These are the most liquid assets of all i.e. money that can be used for any purpose the business wants. This category includes things like petty cash floats and business bank account balances.
2. Short Term Investments: These are assets that a business or company may have when it invests some of its surplus cash in securities or bonds to hopefully earn a higher rate of return than if it is just left in the business doing nothing.
3. Debtors / Accounts Receivable: Accounts Receivable and debtors arise from selling goods or services to customers on credit; at the end of a trading period the amount in the debtors category is what they still owe for the goods or services they have already received. In terms of liquidity they are next in line after cash.
4. Stock: Any business which sells physical goods will probably carry stock to ensure continuity of supplies to their customers. Stock can be partially finished products or finished products which a business expects to be sold to customers in the near future. They are considered to be the least liquid type of current asset when compared to the other three above.

Long-Term Assets Or Fixed Assets

Long-term assets are non-liquid assets which are generally required for the day-to-day operations of a company and which cannot be easily converted into cash. They are also called fixed assets. They are purchased for long- term use for the business and are expected to continue in existence for more than a year, thus contributing to current and future years profits. They are likely to fluctuate in value more than current assets.
Examples of long- term or 'fixed' assets are:
1. Tangible Fixed Assets: Land, buildings, machinery, vehicles, equipment, tools and furniture may be included in this category. The owners of the business use these assets over a number of years in order to carry out their trading activities. Therefore, they are not consumed or sold during the normal course of business.
2. Intangible Fixed Assets: This category includes items like goodwill, patents, copyrights and trademarks. Due to their non-physical nature, the value of intangibles is often less certain than that of tangible fixed assets. As a consequence, specialist valuations are conducted if a business is sold and the balance sheet contains these items. Intangible fixed assets can be either bought into the business or generated from within an organization over a period of time.