| |
| |
|
patsbusiness2.com
|
|
|
|
Real World Accounting for Small Business Owners
If you're like me, you love accounting. It's so fascinating and such an ingenious system. Don't you just think that Double Entry Accounting is the most beautiful creation of all humankind? Okay, let's get real. You probably think accounting is boring and best left to pencil pushing geeks (like me!). I mean?BOOORRRRING! Total Snooze-fest! Well, my friend, I'm about to introduce you to Real World Accounting for Regular People. But, be careful, it just may change the way you look at accounting FOREVER! In fact, one of my clients looked up from a spreadsheet one day and said, "Wow, I never knew accounting could be FUN!" You just might have the same experience. For starters, a lot of people think accounting is about math, which is an immediate turnoff. Although accounting does include math, it's more like a foreign language. All you need to do is learn the parts of that language that actually apply to you. Think about visiting a foreign country. You don't need to be fluent in the entire language. You just need to know the important things like what to order (or not order) in a restaurant, how to get directions, and how ask where the bathroom is. It's the same thing with accounting. You need to know what you need to know and the rest is unimportant. I mean, do you really need to know about corporate accounting practices or off shore financial transactions. Probably not. So, how do you figure out what you need to know when you don't even know where to begin? Follow me and I'll show you! The first thing you need to know is this. You must, must, must keep your personal finances and your business finances separate. Using your personal checkbook for all your transactions is a bad way to go. Here's why: ? The Internal Revenue Service wants to know that you have a very clear distinction between your personal affairs and your business affairs. They want details. If you try to pass off personal expenses as business expenses, you're violating tax laws. They don't like that. ? If you ever plan to borrow money for your business or get credit from your vendors, your lender or vendor will want to see detailed records of your business performance. Handing them your checkbook register is not going to make them want to give you money or sell to you on credit. ? You need to know how your company is performing at all times so you can plan ahead, make adjustments in your operations, and make informed decisions. ? The more accurate your records, the more accurate your tax return. It prevents you from missing deductions. ? It's the only way you'll know whether your business is making money or if you're just kidding yourself. So, if you don't have a separate checking account for your business, go get one. It's easy and inexpensive and it will give you clarity on how your business is really doing. The next step is your accounting system. Now, when I say "accounting system" I'm talking about an organized way of keeping track of your records. It can be computerized or it can be the old fashioned pencil and paper route. The important thing is that a) you have one and b) you use it. Finding a System That Works For You Your record keeping system needs to be designed so that it works for you. It should be: ? Simple to understand If you use a computerized accounting software package like QuickBooks, all those qualifications are met. I generally recommend QuickBooks to my clients because it's easy to use and you can also find local support for set up and troubleshooting. I don't whole heartedly recommend QuickBooks because I think parent company Intuit is losing touch with its core customer (we, the small business owners of the United States of America). There's too much nickel and dime-ing and poor support. But, at this point, it's still the most widely used system and certainly meets the needs of most small businesses as far as what it can do. I do recommend that you get professional help in setting up your accounting system if you don't have an accounting background. It's a case of Garbage In Garbage Out. A well set up system will give you the best information with the least trouble. It's less expensive to have it set up right to begin with than it is to have it cleaned up later. Whatever record keeping solution you choose for your business, the key to success is actually using it on a very regular basis. Otherwise, your business struggles and you're in constant danger of sliding into the Cash Flow Swamp. Caroline Jordan is a small business mentor and consultant helping small business owners understand, diagnose, and improve cash flow in their businesses. For more information and resources to improve cash flow visit http://www.TheJordanResult.com/mastering.html .
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
If You Want to Work from Home Here are some important points to take note of if you want to work from home. working from home is a dream occupation for many people, but only a few of us will dare to trudge that path. Pressure Washer Companies and Steam Cleaner Maintenance If you run a pressure washing business it is a must that you understand and take care of your equipment. It is your livelihood. Mobile Pressure Washing and Cleaning Scheduling If you own a mobile car washing, pressure washing or auto detailing business you know that when your crews and machines are parked and working that you are making money. You also know that when those units and crews are driving or stuck in traffic you are losing your shirt in costs and inefficiencies. But This Is Just My Opinion Hi, Charles.. How Micro Loans Can Mean Macro Success for Your Business "Inch by inch, row by row.. Old Data in Database Marketing Software Database Problems in MarketingI have been working on a direct mail campaign for our team in many areas and we are finding that the yellow page listings and business list CDROMS contain so many closed companies that we are spending too much on the mailings, which are opened a little less because of the anthrax scare. Even customized lists are of little value. 11 Things Small Business Owners Can Learn From Tiger 1. There Are No "gimmes" - They count two-foot putts on the PGA Tour. Accepting Checks in Your Business Virtually Risk Free Most businesses accept checks as form of payment for goods and services. However, accepting checks can be a risky endeavor if your company doesn't follow good policies and procedures for preventing loss from bad checks. Change May Be Your Ace in the Hole Whether it has been thrust upon you by external market forces or it has simply bubbled up from the internal dynamics of your enterprise, change itself always presents opportunity for improvement. And in a knowledge based economy, change may be the only thing we can count on as small business people. 11 Things Small Business Owners Can Learn From Punxsutawney Phil 1. Look Over Your Shoulder - Of course, Punxsutawney Phil has to look over his to search for his shadow. Six Essential Skills to Business Success! The following are six essential skills to business success. You may not have developed all of these skills, but like most things in life, you can by learning, practicing and determination. A Day in the Life of a Self Employed Professional It's Monday morning and Connie the Consultant sits in her executive office chair overseeing her business empire. Her desk is strewn with half finished projects, several weeks worth of to do lists (none of them completed), scribbled post it notes, and a permission slip for her daughter's field trip to the Planetarium that should have been turned in last week. The Perfect Mission Statement One way to determine your companies mission statement is based on a general overview of the company. Some important questions are asked like: Why does the company exist and what kind of business is it in? Is there a particular market or niche that it will concentrate upon? How will the company be distinctive in its business methods? Once these questions are answered, the focus moves to the accomplishment of these broadly expressed objectives. Pressure Washing at Golf Courses There are many potential niches for pressure washing companies that often go unchecked. Some are quite lucrative and are worth investigation if you own a pressure washing business. Starting a Mobile Auto Detailing Business; Dry Wash or Pressure Wash? Many experienced auto detailing professionals who have started out using a pressure washer rarely use Dry Wash n' Guard. Most would say this is a matter of preference more than anything else. Write An Effective Job Proposal I am simply amazed at the problems some of my colleagues are experiencing regarding writing job proposals for customers. So often I hear that there has been some sort of disagreement between client and service provider, something that can and should be avoided before a project is started. 50 Ways to Save Money There are countless ways to save your business money. Unfortunately, many Australian businesses are overlooking them, or simply don't have the time to go searching them out. Do You Need the Help of a Virtual Assistant? Running a business, whether large, small or in your home, is full of challenges. Getting the day-to-day tasks completed, e-mail, faxes and telephones answered, bills and statements sent out, reports run, schedule updated, travel arrangements made, marketing pieces and website updated, as well as a plethora of other tasks, can be downright daunting. Financial Dose for Business The goals of businesses have undergone much evolution from the times when entrepreneurs were content with anything that they received above the capital invested. Businesses now want to expand their reach globally, riding on the wave of technology. Your Business and the Story of a Tree; Part One This morning, I went to take a short walk outside. I've been feeling a little more flexible since this weekend, and I figured a stroll would help me keep that liquid feeling in my bones that I've missed so much.
|
|
Small Business Information | Traffic Building Information Powered By: Work At Home With Google - FREE! |
| © 2006 |
