Entrepreneurs keep a lot of the financial details of their business in their heads. Doing so has its advantages: No new software to learn, no danger of a system crash that loses all your data, and you can tweak your budget as often as you need without sitting down at a desk.
But when you don't have a system and some processes in place, unpleasant surprises can pop up, goals can be easily missed and important paperwork forgotten. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and maybe improve your profits. It can also help you to stay out of trouble with the Internal Revenue Service.
1. Plan for major expenses.
You're less likely to miss business opportunities or have to scramble for a loan when the expenses become unavoidable.
2. Track expenses.
You otherwise might some miss tax write-offs and may lose out on others.
3. Record deposits correctly.
You may be less likely to pay taxes on money that isn't income.
4. Set aside money for paying taxes.
The IRS can levy penalties and interest for not filing quarterly tax returns on time.
5. Keep a close eye on your invoices.
Late and unpaid bills hurt your cash flow.
Some entrepreneurs believe that once they've sent out an invoice, they've taken care of billing. Not so, Every late payment is an interest-free loan and hurts your cash flow.
Courtesy of Entrepreneurs
For more information contact Neikirk, Mahoney and Smith at 502-896-2999
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