Accounting and pie at Women’s Network Luncheon

Karen Kritta, CPA , spoke at the March 2010 Women’s Business Network luncheon at the Pie Place. She encouraged participants to use their financial records as a barometer of how well their business is faring.

Karen Kritta, CPA, was the featured speaker at the Wednesday, March 31 Women’s Business Network luncheon at The Pie Place in Grand Marais. Kritta said she was pleased to see such good attendance, noting, “Most people put accounting in the same class as doing their taxes. They don’t enjoy it. But if you can think of accounting as an information system it can be a big help to you.”

Kritta explained some of the basic accounting systems and forms that can be used, giving an overview of such accounting principles as cash basis versus cash accrual records, fixed versus variable costs, and budgeting forecast versus actual. Kritta stressed that it is important for business owners to watch financial statements for anomalies. Her handouts showed the financial data of an unnamed company that did not pay attention to its financials—and ultimately failed.

“Even if you don’t keep your own books, you should review your financial information. For example, if some category of operating expenses seems abnormally high, you should investigate,” said Kritta.

Kritta is a graduate of St. Cloud State University and she holds two business appraisal certificates. She relocated her business to Cook County in 2008. She works as a consultant in family law and conducts business valuations. She spoke a little about the North American Industry Classification System (NAICS), which rates a business on a number of key financial items. “These ‘benchmarks’ are what a banker looks at when you go for a loan,” said Kritta.

Kritta said if anyone would like more information on their NAICS, they could contact her at (651) 270-1445 or by e-mail Karen@kckrittacpa.com.

Women’s Business Network Luncheons are sponsored Cook County Higher Education and the Northeast Entrepreneur Fund. For information on future luncheons, contact highered@boreal.org or call (218) 387-3411.