One of the biggest mistakes small business owners make is commingling business and personal funds. They fail to set up separate business-only bank accounts. They may pay for business expenses out of a personal account, or vice-versa. When tax time rolls around, these entrepreneurs find themselves in a self-created mess trying to sort out personal…
Understanding how your business functions financially is often one of the most overlooked yet important functions of being in business. Beyond the necessity of cash flow and understanding where your money is going each month, is the critical matter of being able to adequately represent your business’ financial viability for creditors, vendors, bankers and even…
As a small business owner, there are many challenges to understanding all of the tax codes regarding payroll taxes and how to treat different workers in your company. Finding the right answer to the contractor versus employee question can mean a big difference in how you treat that individual for tax purposes. Let’s look at…
I think of the accounting function as an integral part of a small business. About 75% of small businesses fail in the first two years. This is not a statistic that I want to hear being a small business owner myself. However, there are things that are essential that can help our businesses survive and…
Often small business owners are troubled by the question of whether to do the accounting tasks themselves, hire in-house bookkeeping staff or outsource the accounting function to a CPA firm. The answer to that question is that it depends on various factors. What should be taken into consideration is: Size of the Business Number of…