Resources for Stickers

It never ceases to amaze me that people are often willing to spend huge amounts of money on the latest equipment, advertisements for their business in every local paper, and as well spending quite a bit of money designing their office for a high priced look, yet when it comes to figuring out where all of these receipts go, they often don't have a clue or hire someone at $8.00 an hour to handle everything and not bother asking questions as long as they have some money in the bank.

It's estimated that 80% of all Small Business Owners go out of business within 5 years, with the #1 reason being financial issues.  Many of these financial issues may have been avoided had the owners taken on a better understanding of what the financial numbers mean.  Also they could have also survived by hiring the appropriate people in accomplishing this goal.

Bookkeepers, Accountants, and CPA's - what works best for your business?  There is no magic number as far as a dollar amount is concerned, but it's more sensible depending upon the amount of financial work that needs to be done.  If you do up to 25 transactions a week with customers, vendors, etc. then you would probably work best with a Professional Bookkeepers, possibly for a monthly review.  However when you're getting into the issue of having a store front with constant outside traffic, then making daily deposits to the bank, writing checks on a daily basis, then you should consider moving up the ladder to a Professional Accountant to handle the more detailed transactions and reviews.  Finally, the role of the CPA should be reserved for working not only with your taxes but also doing a quarterly review of how your business is doing.

At all levels though, you need to have a clear understanding of what these reports mean to your business' success.  Take a short and basic accounting course at a SBDC or community college.  Make sure these people work for you, so if you have questions you get the answers you need to understand them.

Valuable and Free Resources for Accounting Basics

Don't just nod your head at your monthly reports not knowing what they mean - get a handle on your business. You don't have to have an accounting degree to read a profit and loss statement, nor a balance sheet. With the internet there are numerous web sites that can help you with the information but also help you find that person to fit your business needs. Remember to ask the following 5 important items: *do they have a web site to review *do they have insurance to cover any mistakes they make *do they continue to take educational courses/workshops *do they have at least 3 references for you to check *do they have a standard agreement so you can spell out what is expected of you and expected of them

Evaluating the Best Software for your Business Needs

Pencil and green pads is not for everyone these days. You have to take a serious look at what you are trying to accomplish from your financial reports, to help you make the best decisions. Often times people think Excel will do the trick, however for more complicated transactions that you give the person doing your taxes, this isn't going to work to your advantage. Also do not think a software that's more than 2 years old is going to do the trick either. Is your business not worth more than a few hundred dollars to invest in a current software? Again, the more you don't keep track of where your money is going, the more money you lose in the long-term. You have to have basic common business practices for your business to succeed, and adequate software is what you need to have a long-term business life.

The second is that you have a resource of people who know your software, especially if it's industry specific.  Nothing makes things worse than if the only person who knows the in's and out's of your business system chooses to leave the company and then you spend your valuable time training someone else, while trying to do your own work.

http://www.quickbooks.com
http://www.peachtree.com