Accounting & Finance for your small business

Bookkeeping doesn't require that you hire an accountant or use bookkeeping software. As long as you can accurately state your income and expenses on your tax forms (and you've got the records necessary to prove that you're correct), you are good.

But if you have employees, carry an inventory, have a large customer base, or incur substantial expenses, you need to institute standardized bookkeeping procedures, either on paper, or on a computer. Keeping good records will make your business more profitable by helping you:

• Recognize problems early (such as disappearing inventory, increased costs for products or equipment, or customers who aren't paying on time), before they have a chance to bring down your business.
• Maintain your cash flow at acceptable levels.
• Figure out whether it's time to raise (or lower) your prices.
• Put together the financial reports you need to get loans and investment, and
• Prepare your tax returns quickly and accurately.

Adopt Emergency Strategies

 Every business gets side-swiped by the unexpected, whether it's an economic downturn or just a string of bad luck. Usually you can't predict most small business disasters. But when they strike you can—as with any disaster—be prepared to implement a strategy. With the right attitude and some flexibility in your planning, you can prevent a temporary downturn from becoming a business-ending tailspin.