When most small business owners think of the terms bookkeeping and accounting, they often use them interchangeably. While it’s true both bookkeeping and accounting are important in the management of your company’s finances, some key differences between the two functions do exist. Therefore, business owners need to understand the roles of each and how they work together to ensure your company’s success. (more…)
Posts Tagged accounting
Congrats! You’re a small business owner who has turned your passion into a profitable business. Every day, you get to work on something you love. That’s what most business owners strive for. But running a business also comes with a long list of to-do tasks that you may not love doing. However, these tasks must be done to keep your business successful and growing. Bookkeeping is often cited as one of these least favorite tasks by business owners. (more…)
Is your business going paper-free or at least relatively paper-free? While the idea sounds terrific, it can create a mess if you still operate your business bookkeeping systems like you did 30 years ago. If you are fighting a muddle of chaos, chances are that you don’t have a clear updated process in place, and that can do nothing but aggravate and stall your progress. (more…)
Most financial advisors tell people they need to have an emergency fund to cover unforeseen financial issues; job loss, medical expenses, or home repairs, that may occur in their lives. The same can be said for businesses, too. (more…)
Ahhh, spring is here! The days are longer and everyone is in a good mood, right? Well, maybe. For many small business owners this time of year is very stressful. That’s because they are trying to get their business books in order to complete their tax returns. These are the weeks, almost as much as the first month of the year, is when we hear, “I’m not doing this again. Next year I’m going to …” as they fret over missing receipts, confusing records, and fear about the upcoming tax bill.
Did you know that the cost of labor can be one of the largest expenses a small business can have? It’s second only to the cost of real estate, according to the U.S. Department of Labor. Depending upon the industry you’re in, labor costs can range from 10% to 30% – or more. For your small business, your labor costs can quickly eat up your earnings if they’re not monitored and adjusted accordingly.
Small business owners often need to acquire the services of other businesses. When inquiring about the services a company provides, you may be presented with a bid, quote, proposal, or estimate. Many companies often use these terms interchangeably. However, the definition of these terms can mean different things to different people and in different industries. (more…)
This last week during a storm one of the homes in my neighborhood was struck by lightning and caught fire. The fire left skeletal remains of the structure’s second story. In the end, the entire home was a total loss. Luckily the family and their pets were all able to get out safely. But in less than eight minutes, their entire lives were turned upside down.
You know what the lifeblood of your small business is, don’t you? It’s money. And if you aren’t managing your money and accounting appropriately, you could be developing habits that will actually KILL YOUR BUSINESS. (more…)
Small business owners and entrepreneurs have a reputation for being outliers, rebels and thinkers of a different sort. Many times that means they come up with some really great ideas and innovations, but it can also mean that they stumble into problems when it comes to general accounting practices. Some big idea people are extremely detail oriented and others can’t do a thing with details – and therein lies the problem. (more…)