Tip #1: Keep it Separated
Too many business owners mix and mingle their personal and professional finances. Even if you are a sole proprietor keep you business business, and your personal personal. Set up separate checking accounts and if you need some funds from your small business, write yourself a check, or make a cash withdrawal. This will help come tax time when you need to separate business expenses. Even though the form of business is a path-through, you should still make sure a separation takes place. This will make expense tracking and budgeting much easier on you.
Tip #2: Keep Up to Date
Falling behind on your bookkeeping will only make matters worse. Set a specific time aside to deal primarily with recordkeeping. This will make tax time easier and quicker for you or your accountant. If you simply do not have the time necessary to complete the task, then look at outsourcing the work, or bringing in a part-time bookkeeper. This necessary function of business is so crucial to the success of the business that if cannot be put off and forgotten.
Tip #3: Use Your Numbers
Your financials can tell you a lot about your business, you just have to know what to look for. Check with your financial guru (CPA, bookkeeper, financial analyst, and/or consultant) at least quarterly and have them give you a thorough breakdown of your financial position. These individuals should be able to give you a written and oral report on how your business is functioning. Which areas are weak, and which are strong. Along with that they should also provide advice and an action plan on how you can go about strengthening your financial position.
Tip #4: Know When to Recognize
Recognizing revenue and expenses can make a difference in how your business performs month-to-month and how your taxes are calculated. If you use the accrual basis accounting system your year and month end numbers will be quite different then the cash basis accounting. Be sure you know what accounting method you are using, and how to recognize revenues and expenses correctly.
Tip #5: Check, Check, and Double Check
If you do not use an automated accounting software program (QuickBooks, Peachtree, Great Plains, etc) then there is a chance you will not balanced at the end of every period. By using a Trial Balance you can catch mistakes early and often, this saves from year-end headaches and added expense from your CPA while he/she finds the problem associated with your calculation error. Even if you use accounting software you can still enter erroneous information, be sure to reconcile your bank account against the program every month, this will allow you to catch errors that may have happened when filling out checks, invoices, or journals entries.
About the Author:Jayson Cardwell is the CEO and Founder of Cardwell Financial Group, Inc. Cardwell Financial Group is a consultancy and accounting services firm for small to mid-sized business. They specialize in Financial Management/Analysis, Strategic Planning, Business Analysis, Executive Development, Not-for-Profit Development, and outsourced Accounting Services. For more information visit Cardwell Financial Group, Inc. at www.CardwellFinancial.com
Related Articles
Effective Oral Presentation Skills
By: Jennifer Selland | 03/04/2006 | Business
There is a myth that great speakers are born, not made. This is based on the misconception that somehow certain individuals have the innate ability to stand in front of an audience with no anxiety and give a moving, dynamic speech.
How to Select a Distributor Product
By: Zach Thompson | 13/12/2007 | Home Business
One of the best ways to make additional money to have for the extra things you enjoy in life is to become a distributor. Distributors can sell distribute products both on the internet and offline.
E-Commerce to Promote Your Business Finally Revealed
By: James Liburd | 11/04/2006 | Online Promotion
We have entered the era of Ecommerce.It is both a science and an art and can be quite rewarding once you take the time to do it properly.It is the way of the future.
Getting On The Black In Business
By: Jon Caldwell | 14/12/2007 | Business
One thing that most business executives hate is seeing losses or red marks on their financial statements. Anyone in his right mind would want to invest in business and make a profit. It is simply the common thing that people look for right now but they fail to realize the...
Incorporating Your Business: Why, When And Where To Incoroporate
By: Joaquin Reveron | 14/04/2006 | ECommerce
Vital tips any business should know before starting a business. Success or un-successful businesses should always know why, when and where to incorporate. Know the facts on incorporating a business.
International Hr Policy - Luxury or Necessity?
By: Matthew MacLachlan | 17/12/2007 | Human Resources
With so much uncertainty surrounding global working, companies need to convince their employees that everything possible has been put in place to make the assignment worthwhile to them, their career and, not least, their family.
Top 7 Proven Words That Your Ad Copy Can't Live Without
By: Jonathan Teng | 22/04/2006 | Advertising
These are the secret words that will increase your sales conversion overnight! No matter what you sell... These words really work!!
Sweden, your Dream Vacation Destination
By: Daniel Jowssey | 17/12/2007 | Destinations
Do you know ferry? Have you ever travel by ferry?Ferries are sea transport in the form of boat or ship that carries passengers, cargo and sometimes vehicles. It is a type of public transportation that has been around for centuries. It is a cheaper way to travel from one point to another, but lately a trip through a ferry is made not only for financial consideration but for leisure as well.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Could you tell me if Executive Imaging Systems is ...
By: Alice | 19-07-2008
Could you tell me if Executive Imaging Systems is still in business? It was headquartered in Cherry Hill, NJ.
Big bank cheaters
By: Betty Beckham | 19-07-2008
how can a co. as big as bank of america--take closed credit cards and put money on the card and expect senior citzens that are disabled pay this money back to them--even if they don't owe it?????? i had a credit card in 2007-the bank was always sending access checks-after calling bank of america-i used 1 access check for $2,000.00-after a couple of weeks my bank notified me that this check bounced-i had a credit limit of $7,500.00-i called and closed and canceled this card (which was clear)--on april 24,2008 bank of america pulled this closed and canceled credit card and put this $2,000.00 back on my closed account--then harrassing statements started-i would call bank of america and explain (i do not owe this) then harrassing letters and late night phone calls-i told them (i do not owe this)--then -late credit reports- finally july 3, 2008 they called and said i was right-i did not owe this--after ruining my life and my credit now they are sorry and want to forget it=i can not drop this-and let other senior citzens be taken by bank of america-check out miller VS bank of america-i want a letter of apoligy and a small settlement --clean my credit report-- one of the bank member told me this was fraud--of course they can't find this one truthful man--probably fired!!!!!-
admrlsqtrs@aol.com
How to get a small business license for an animal rescue
By: icybaby05 | 19-07-2008
how to get a small business license for an animal rescue
Dark Red Business Jacket in natural fibers, needed by 7/24/08
By: Denise | 18-07-2008
My dress code is a dark red slenderizing long sleeve jacket and a black pencil skirt. My problem is that I am on a budget and need natural fibers. I am allergic to Polyester, Nylon, and have to be very careful with Rayon. I am doing great with Silk, Cotton, Wool, and Linen.
Please let me know who can help me out, size 10 - 12, petite, and for an affordable price for me. I need it by Thursday, July 24, as I am leaving for Seminar on Saturday morning, July 26.
Thank you very much for helping me find something in Long Beach or close by, so I can go try it on.
Sincerely,
Denise
How to get a concession stand at a major ball Park?
By: Concession | 18-07-2008
How would I go about getting a concession stand at a major ball park?
Bad credit due to divorce. Any companies that believe in secind chances?
By: Glinda | 18-07-2008
BAd credit due to Divorce. New Business need credit card.Any companies out there that belive in secind chances? I am opening an afoordable creative arts studio to help build children,s self esteem.
Tracy
Q&A Powered by:
Latest Small Business Articles
Google Adsense : an Introduction
By: upinder singh negi2 | 18/07/2008
For many people, Google's Adsense publishing program is responsible for their very first taste of an online income. It may be pennies and cents but that first time you look in your account and see a credit is an exciting moment.
How to Improve Business Signs Through Digital Printing
By: Joel Owens | 17/07/2008
Business signs have never been easier to do. Thanks to the advancement of technology, including the development of digital printing. This is the time when you have to exhaust the available resources around you and maximize their potentials to work to your advantage.
Profits of Google Adsense
By: upinder singh negi2 | 17/07/2008
Are you a webmaster who needs funds to keep your website running? Or is your website the only way for you to earn income? Whichever you are, for as long as you are a webmaster or a web publisher and you need cash, affiliate marketing may work well for you.
How You Do Internet Business
By: upinder singh negi2 | 17/07/2008
Internet business mastery is something that can be learned from a mentor. The problem with most of us is we think we know everything by browsing the net and try to do something different than what others do.
Journey of Google Adsense
By: upinder singh negi2 | 17/07/2008
As a blogger, I started creating websites that I found personally interesting to me. I found articles that were fun and interesting and posted them for people to read. After all.. people create blogs so they can share their feelings and aspirations.
Memorial Jewelry: Having Your Departed Loved One Close at Heart Through an Urn Necklace
By: sumeetha Gowda | 17/07/2008
There is now a way to have your departed loved one close to you everyday, thanks to the concept of memorial jewelry. Cremation jewelry, remembrance jewelry, keepsake necklace - whatever everyone else calls it, it practically refers to the same thing. It is a piece of jewelry that holds a small portion of your loved one's cremated remains.
Cremation Urns - Preserving the Memory of Your Loved One Forever
By: sumeetha Gowda | 17/07/2008
Many people who have chosen to cremate their loved one who passed away make the mistake of taking the cremation urns for granted. It is very important to remember that a cremation urn is more than just an ordinary container. It is a container which contains the ashes of your loved one - of what has remained after he or she has gone. It will keep and hold the memory of your loved one alive not only for this lifetime but for many lifetimes after yours.
5 Most Important Point When Placing Google Adsense
By: Praveen Kumarii | 17/07/2008
I have been adding Google Adsense to my websites for a couple of years now with great success. It's amazing how adsense earnings can turn into another significant monthly income stream with little effort on your part.
Business 
