Transcript BerkShares Training Slideshow

Business Information Slide Show
produced by BerkShares, Inc.
P.O. Box 125
Great Barrington, MA 01230
(413) 528-1737
What are BerkShares?
 BerkShares are a local currency for the Berkshire
region.
 A way of encouraging consumers to buy local
products and services
 A useful tool for community & local development
 A way to increase patronage of local businesses.
• Since the launch in September of
2006 over 2 million BerkShares have
circulated within our local economy
• There are approximately 180,000
currently in circulation
• People who choose to use them are
making a conscious commitment to
buy local first
• Local currencies, widely used in
the 1900s, are again being
recognized as a tool for
sustainable economic
development, throughout the
country and the world.
• BerkShares help strengthen our
regional economy, favoring locally
owned businesses, local
manufacturing and local jobs, and
reducing our region’s dependence
on an unpredictable global
economy.
BerkShares come in five denominations:
Berkshire Bank, Two (2) Great Barrington
Branches, Lee, Sheffield, Stockbridge and
West Stockbridge branches
BerkShares are placed in
circulation when citizens
exchange federal dollars for
BerkShares at any of 12
branches of the five
participating banks shown
here:
Lenox National Bank, Lenox Main St. Branch
Pittsfield Co-operative Bank,
Great Barrington Branch
Lee Bank, Great Barrington, Stockbridge
and Lee Branches
Salisbury Bank, Egremont & Sheffield
Branches
Banking With BerkShares
• If you don’t currently bank at one of these exchange
banks they will open a BerkShares account for you at
no charge
• The current exchange rate gives the BerkShares
purchaser a 5% discount when exchanging their
federal dollars. That means if or when you deposit
your BerkShares, the bank will deposit federal dollars
in your account at ninety-five cents per BerkShare
Why BerkShares?
Think about the values printed on each
of the bills:
• Community – BerkShares foster stronger
community connections through personal
transactions and local trade
• Economy – BerkShares are a tool for
strengthening the local economy by prioritizing the
local exchange of goods and services
BerkShares Values continued
• Ecology – By encouraging people to shop in town,
instead of on the Internet, BerkShares decrease the
distance that goods need to travel, which in turn
curbs climate change.
• Sustainability – By promoting the local production
and consumption of food and other goods,
BerkShares are helping to build a sustainable future
for Berkshire County.
Several excerpts from an essay by
Wendell Berry on conserving
communities: (Another Turn of the Crank,
1995, Counterpoint, Washington, D.C.) further
support using BerkShares
Berry writes: “Supposing that the members
of a local community wanted their
community to cohere, to flourish and to
last, they would:
• Always ask how local needs might be supplied from
local sources…
• Strive to increase earnings (in whatever form) within
the community, and decrease expenditures outside
the community
• Acknowledge that money paid into the local economy
should circulate within the community for as long as
possible before it is paid out
• Look into possible uses of local currency, communityfunded loan programs, systems of barter and the like
Always be aware of the economic value of neighborliness.
Community members must realize that in our time the costs
of living are greatly increased by the loss of neighborhood,
leaving people to face their calamities alone”
“A sustainable rural economy will be
dependent on urban consumers loyal to
local products. Therefore, we are talking
about an economy that will always be
more co-operative than competitive”
BerkShares Exchange
• BerkShares can be exchanged for
federal dollars at a rate of $0.95 /
BerkShare.
• That means when you go to the
bank to purchase your
BerkShares, at the current
exchange rate you are getting a
5% discount. For example, for 100
Berkshares you pay $95 federal
dollars.
• There is an easy BerkShares to
dollars conversion chart available.
People with BerkShares in hands
will look for the sticker depicted at
left to know where to spend their
BerkShares, or can look online at
www.BerkShares.org and view a
list of participating businesses.
Businesses who sign up for BerkShares may have as
many stickers as you require for your business.
Stickers should be prominently displayed on windows
or doors, cash registers, etc.
New stickers (pictured here) are beginning to make their
way onto shop windows.
Note the wording “Some Restrictions
may Apply!”
Each business may add restrictions to
accepting BerkShares as needed to make the
program work to your greatest benefit.
For the benefit of your customers be sure
your restrictions are clearly stated and/or
posted in a visible location.
Training Your Staff
To realize the greatest benefit from working with
BerkShares, everyone must be on board. It’s up to
you to help your staff understand how to handle them
and also be sure they’re gracious when accepting
them.
• Be sure you share both your knowledge and your
enthusiasm with all staff members.
• Help staff understand that BerkShares are essentially
cash and should be handled in the same manner. It is
suggested that you devote a separate slot in the cash
drawer to hold them.
• One big difference between BerkShares and federal
dollars is there is no coinage for change. You have
the option of asking for both BerkShares and US
Dollars for a transaction that is not an even dollar
amount
• Be sure cash drawers have enough small
BerkShares bills in them to enable staff to give
change in BerkShares for a BerkShares transaction
• Encourage staff to engage your customers and ask if
they would like their change in BerkShares, whether
or not they pay in BerkShares.
– Often people can’t get to the bank and will gladly accept
them.
– The novelty of holding one for the first time could create an
immediate new user
• Always have a supply of
BerkShares directories on
hand to give to customers.
They give the background of
the program and a relatively
current listing of who accepts
them.
• The more places people know
they can spend them, the
better the circulation will be.
The better the circulation, the
stronger the program.
BerkShares Accounting:
Contents
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Setting up your accounting system for BerkShares
Receiving payment in BerkShares
Paying invoices in BerkShares
Depositing BerkShares
Exchanging Federal Dollars for BerkShares
Supporting Non-profits with purchase of BerkShares
Non-profits receiving charitable donations in BerkShares
Acknowledging donations made in BerkShares
Other Recommendations
Setting up your accounting system for
BerkShares
•Set up a separate current asset “BerkShares cash
account” (like a petty cash account) in your QuickBooks or
other accounting program
•Set up an expense line titled "BerkShares discount."
(like accounting for credit card fees)
•BerkShares are cash, so it is also important to establish a
secure place for BerkShares-on-hand.
•Prepare a "Paid in BerkShares" envelope for receipts,
much as you have for petty cash.
Receiving Payment in BerkShares
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Remember that BerkShares are cash and customers will want a
receipt on payment.
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Record the payment as a debit to the "BerkShares cash account"
at the full amount received in BerkShares.
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We recommend calculating and collecting sales tax at the
full dollar amount of sale. Sales tax can be collected in
BerkShares or in federal dollars.
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Credit the appropriate inventory line for the full amount of the sale
as you would when recording payments with checks.
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The total number of "BerkShares-on-hand" in a secure place
should always equal the total amount in the "BerkShares cash
account."
Paying Invoices with BerkShares
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BerkShares are cash. Payments should be made in person.
Remember to have a copy of the invoice so that you can have
the vendor verify payment and date. This signed receipt will go
in your "Paid in BerkShares" envelope for backup purposes.
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Credit the "BerkShares cash account" for the full amount of the
payment.
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Debit the appropriate expense line with the same amount as
you would with purchases made with checks. This practice
ensures all normal inventory controls are in place.
Depositing BerkShares
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If you find that you have more BerkShares than can be spent with vendors,
given in change to customers, or paid to employees as a percent of salaries,
then BerkShares may be taken to one of the five BerkShare Exchange Banks
and deposited at ninety-five cents on the BerkShare.
If you do not currently bank at one of the BerkShare Exchange Banks, you
will need to open an account. Each of the banks is offering a no-cost checking
account for new BerkShares businesses.
Prepare a separate deposit slip for your BerkShares deposit.
The bank will then deposit federal dollars in your account at ninety-five cents
per BerkShare or give you the funds in cash.
For your accounting purposes, if the amount of BerkShares is 100, credit the
"BerkShares cash account with 100"; debit your business checking account for
$95, and debit the "BerkShares discount" expense line for $5.
The "BerkShares discount" is shown as a business expense (much like a
credit card fee or stock broker's fee) and the total taken from profit at the end of
the year in determining your federal and state income taxes.
The intent of the program is that more business transactions will take place as
a result of BerkShares promotion of local businesses, which can help make up
for the discount if you’re unable to re-spend all you receive.
Exchanging Federal Dollars for BerkShares
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If you are using more BerkShares than you’re taking in, the process is
the reverse of depositing them.
Write a check to BerkShares for a multiple of $9.50, say $475 federal
dollars.
Take the check to one of the five Exchange Banks.
You will receive 500 BerkShares. Credit your checking account for
$475 to record the check.
Credit the "BerkShares discount" expense line with $25 (this is new
value to your business).
Debit your "BerkShares cash account" with $500.
Place the 500 BerkShares in the secure place you have already
established, waiting to pay bills!
The total number of "BerkShares-on-hand" should always equal the
total amount in the "BerkShares cash account."
Supporting Non-Profits with BerkShares
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At least one non-profit holds BerkShares acquired at the 5% discount
rate from a BerkShares Exchange Bank.
Supporters of the non-profit can then purchase BerkShares one-toone for federal dollars and the non-profit retains the 5% difference for
its charitable purposes.
Write a check to the non-profit for the number of BerkShares you wish
to acquire.
Note, this is not a charitable donation as you are receiving value
in BerkShares.
Arrange to take the check to the non-profit and pick up your
BerkShares.
Credit your checking account for the amount of the check.
Debit your "BerkShares cash account" for the same amount which
should equal BerkShares received.
Place the BerkShares in the secure place you already established,
waiting to pay bills!
The total number of "BerkShares-on-hand" should always equal the
total amount in the "BerkShares cash account."
For non-profits: Receiving charitable
donations in BerkShares
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After discussion it was decided that since the legal exchange rate for
100 BerkShares is $95, that the charitable donation must be
acknowledged at this rate.
Remember that BerkShares are cash and donors will want a receipt on
payment.
Record the payment as a debit to the "BerkShares cash account" at
the full amount received in BerkShares--say 500 BerkShares.
Credit the appropriate donation line at .95 of the total donation--$475
using the above example.
Credit the "BerkShares discount" expense line with $25.
Place BerkShares in a secure place.
The total number of "BerkShares-on-hand" in a secure place should
always equal the total amount in the "BerkShares cash account."
Non-Profits:
Acknowledging BerkShares Donations
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There are two ways to prepare a formal thank you letter for the
donation which meets IRS requirements for the donor to receive tax
credit:
a. Acknowledge the donation of 500 BerkShares. It is then the
responsibility of the donor to declare the cash value, much like a stock
donation.
b. Acknowledge the donation of 500 BerkShares and then go on to say
that because the exchange rate between federal dollars and
BerkShares is 9.50 to 10, the tax value of their donation is $475.
Other Recommendations/Reminders
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Issue a specific amount in BerkShares each day to each cashier
so when payment is made in BerkShares, change can be given in
BerkShares.
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Keep BerkShares together in your cash drawer.
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Handle sales just like cash transactions.
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Encourage change from federal dollars transactions in
BerkShares (many customers do not have time to go to the banks
and like to trade in BerkShares even without the 5% discount).
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Keep a sufficient quantity of BerkShares on hand in a secure
location to pay bills.
Other Recommendations, Cont.
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Reference the published list of businesses accepting BerkShares
to be creative about where to recirculate them, and check
www.BerkShares.org often for the most up-to-date listing.
• Ask if a business will accept full or partial payment in BerkShares,
even if not listed in the BerkShares directory.
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Do not hesitate to place restrictions on acceptance if you need
to.
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Support branding of BerkShares by adding "BerkShares
Accepted" in your advertising. Add a BerkShares link to your
website. Ask customers if they have or know about BerkShares.
Spending Your BerkShares
There are many places you can spend BerkShares, and many ways to use
BerkShares received as payment for business expenses. Remember, you don’t
give a discount for a BerkShares transaction unless or until you return the
BerkShares to the bank, so look for a way to spend them!
Possibilities include:
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Legal and accounting
Advertising & consulting
Office design, maintenance, equipment, services & supplies
Employee compensation/bonuses
Food for staff/events
Website design & development
Change for sales (whether made in BerkShares or not)
Visit www.berkshares.org for a complete list and more ideas that may work for
your business
About BerkShares, Inc.
• The Purpose of BerkShares, Inc. is to initiate,
encourage and administer educational and practical
programs to further regional economic self-reliance in
the Berkshires.
• Membership in BerkShares, Inc. costs 25
BerkShares annually.
• Proceeds go to support the organization and its
efforts to make a viable local currency for the
Berkshires a reality.
• Any resident of the Berkshire region may become a
To join, please send 25 BerkShares
(checks in federal dollars also accepted)
to:
BerkShares, Inc. P.O. Box 125 Great
Barrington, MA 01230
Include your name and address and,
should you choose, an email address
and phone number.
Additional donations are most welcome.
Your Feedback is Always Welcome
• All ideas for new businesses you’d like to see accept
BerkShares are welcome.
• Encourage new businesses, especially your local
vendors, to sign up. The more ways we all have to
spend them, the longer they stay in circulation.
Further Questions?
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If this is unclear, or if you wish more detailed instructions on how to
account for BerkShares, first look on our website,
www.BerkShares.org.
If you still need further assistance, please call us! We’d love to hear
from you. The BerkShares office can be reached at (413) 528-1737.
“A good community, as we know, insures itself by trust,
by good faith and good will, by mutual help.
A good community, in other words, is a good local
economy.”
-Wendell Berry