Financial reports paint a picture of how well a business is performing, if they have room for growth, and when they should reduce spending to keep the doors open when sales are low. The most important one up for discussion is often the Income Statement, also referred to as a Profit and Loss.
In speaking to Jowanna Parris-Daley of Daley Word, we shared a common concern for the small businesses we support: poor cash flow management. This topic is always on the top of the list for businesses, no matter how long they’ve been in operation. It’s especially crucial for new business owners to grasp the cause and effect of certain habits. Below are two areas where most new businesses fail resulting in a weak cash flow.
While celebrating this year, I hope you haven’t forgotten the IRS Tax Return Filing Deadline of October 15th. The dreaded day is less than 60 days away. And the short time left is hardly enough time to gather all your business income and expenses for 2017. Looking through bank statements, searching for mileage and all the indirect costs related to running your business last year will be a defeating task.
For decades, small businesses have struggled to make their mark in many industries. Working against well-established big business has put a strain on their abilities to compete. Another hidden dagger that has proven to be a dream-killer is taxation of the little person trying to earn an earnest living on his or her own.
Hello fellow entrepreneurs! Thank you for being apart of our blog reading today. Welcome to another read on The Keys. It’s your favorite Money Motivator – Growth Instigator, Erica Fields bringing you the keys to your financial house!! Planning is a setup for success. Tax planning involves many parts and bookkeeping is a major one for business.
The major differences in fixed assets and inventory are how you use them, for how long and how to manage and account for them. Most businesses have inventory regardless if they sell products or services. Inventory is not always an item to be resold. The key is to understand how to identify and manage these items.
When we begin our journey on the path to entrepreneurial greatness, we sort of have our blinders on to threats lying and waiting to flare up at the wrong time. Losses and tax requirements are major adversaries to small businesses. Having a professional service provider on your team will help you identify weaknesses in your financial process.
Let’s talk about the equation to having proof of income. Yes, proof of income is a hot topic among startups and small business owners. They just don’t know it. You see, everything compliant surrounds proof: legal has evidence and financials have documentation. Being an entrepreneur doesn’t exempt you from this need to prove your financial worth.
When first starting out, new business owners will attempt to cuts costs to ensure most of the investment capital can go towards building the business. What we fail to realize is that employing a bookkeeping system is a very important part of business growth and it encourages planning and better spending habits. It is understandable to want to cut costs and avoid hiring a bookkeeper full time or even outsourcing the tasks to a professional service. However, we should all seek guidance from a professional, even if we plan to wear the hat of bookkeeper.
Today’s topic is about the importance of bank statements and why your bookkeeper requests them monthly. Each month, your bookkeeping provider should collect your bank and credit card statements for the company. And you probably question why, especially if you’re using QuickBooks Online for your small business bookkeeping system.