Welcome to Power Talk Friday! We are very happy to have Kimberly Merlitti, one of our favorite Power Talk Experts, back on the show today. Many people are really in the dark about how much money is actually going in and out of their businesses. Kimberly, who first appeared in episode #361, loves teaching people to understand accounting in a way that makes them an active partner in their finances. Talking in really simple language, she helps people figure out the really important financial side of their businesses. In today's episode, you will learn about the billable hours, rates between the principal designer and junior designers, how to know your cash on hand, how to know your 'cost to be open' number, how to budget to hire a junior designer, and how to prepare for a recession. Listen in, to find out how to get to know your numbers.

Kimberly Merlitti owns KMM Consulting based out of Washington, D.C. She has 20 years of experience working in accounting for companies such as Swinerton Builders, WRNS Studio, and Martin Group. She has her Masters in Accounting from Golden Gate University. Located in Washington D.C. Kimberly's clientele includes a diverse group of service-based companies, with the main focus on small interior design, construction, and architectural firms. The goal of her firm is to make the businesses she works for as profitable as they can be by educating them on accounting, cash flow management, tax deductions, project reporting, and business management. Tune in now, for more!

Show Highlights:

• Kimberly shares a really simple calculation for you to get to know how much of the money in your business account is actually yours.
• Using the best software to calculate your vendor liability.
• Keeping an eye on your cash flow.
• How to know your cash on hand.
• It only takes five minutes a month to know your cash on hand.
• Budgeting to hire a junior designer.
• Working out your time-billing rates and budgets.
• Being upfront and straightforward with your clients.
• Telling your clients what to expect with every stage of the design process.
• Things to consider when working out your 'cost to be open' number.
• How to prepare for a recession.
• Building cash reserves for difficult times.

Other episodes mentioned in today's show:

Alinda Morris: #429

Michele Williams #180 and #395

Peter Lang #349

Links:

A Well Designed Business

Kimberly's website: KMM Consulting

Kimberly's email: [email protected]

Need to schedule time with KMM? KMM Consulting