If you interviewed business owners of failed businesses, a majority will tell you that they didn't understand or feel comfortable dealing with the "book work". Your ability to understand and perform day to day accounting tasks in your small business is a critical success factor. Here are some tips to help you avoid the most common mistakes business owners make.
Top 10 Record Keeping Mistakes Business Owners Make
1. Not having a record keeping system set up (the shoebox approach)
2. Procrastinating on invoicing customers
3. Sticking checks in a drawer and forgetting to deposit them
4. Not tracking carefully which customers have paid
5. Not tracking invoices that are overdue
6. Not following up to make sure overdue invoices get paid
7. Putting "book work" at the bottom of priority list
8. Sloppiness-not recording checks, recording the wrong amount, etc.
9. Abdicating all responsibility-"I have 'people' to handle that."
10. Creating an embezzlement friendly atmosphere-"I have 'people' to handle that whom I trust completely."
How to Do It the Right Way So You Only Have to Do It Once
? Set up an accounting system that works for you
? If you don't have accounting experience get help from an expert
? Schedule time each day or week to take care of "book work"
? Don't procrastinate or move it to the bottom of the pile
? If you outsource or hire an employee to perform tasks, follow up to make sure things are happening as they should
The way you handle record keeping in your business helps to determine whether you have a healthy cash flow or you're always on the edge of financial disaster.
Caroline Jordan is a small business mentor and consultant helping small business owners understand, diagnose, and improve cash flow in their businesses. For more information and resources to improve cash flow visit http://www.thejordanresult.com/mastering.html.
Culver prom limo ..Most of us remember going to at least one garage... Read More
Are you a motivational speaker who consistently gets rave reviews... Read More
Q: After years of dreaming about starting my own business,... Read More
There's been a recent rise in the number of elderly... Read More
Many small businesses do quite well due to the blood,... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
For many small businesses, the "S" corporation is the business... Read More
This morning, I went to take a short walk outside.... Read More
Auto detailers are often asked to clean boats and detail... Read More
So what exactly is a "Small Business Lone Ranger?" A... Read More
It has been said that the only constant is change.... Read More
What was your aim when you went into business for... Read More
Many smaller businesses choose niche markets for various reasons and... Read More
Many of our nations 400,000 franchisees run their businesses out... Read More
The Operations Plan is a critical component of any business... Read More
Most folks in the pressure washing business are happier to... Read More
Your business account comes with an ATM, Debit card. Pick... Read More
The book, "Become the Squeaky Wheel," by New Hampshire author... Read More
Pet Transportation Services are needed as the number of pets... Read More
Every business regardless of size needs a "Business Image Manual"... Read More
My 16 year-old daughter said, "Gee Dad! You look just... Read More
You can provide affordable health care plans to your employees.... Read More
Are you responsible for your results?What comes to mind when... Read More
One way to determine your companies mission statement is based... Read More
What kinds of things effect mobile service businesses P and... Read More
Wood Dale limo ..If an organization lacks a mission statement, it is worthwhile... Read More
Recently one of my customers told me the chaos swirling... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
There are no "rules of thumb" in the pursuit of... Read More
You know your prospects need what you sell. You know... Read More
The reason we Franchisors call it an exclusive territory is... Read More
What is Business Valuation? The term business valuation is the... Read More
Once you've decided to incorporate your small business the next... Read More
One of the best marketing strategies a business or organization... Read More
My 16 year-old daughter said, "Gee Dad! You look just... Read More
If you intend to franchise your company you will need... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
Those who are in the pressure washer business should not... Read More
Most business owners know when they need an accountant, but... Read More
American small business is again in transition. Many employees, now... Read More
Are you tired yet of all the books out there... Read More
The choice of financing is an important determinant of whether... Read More
Everyone loves a good story. Whether it's the story of... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
One of the best ways to make money in the... Read More
Due to the over regulation in the Franchising Industry and... Read More
I meet and talk to hundreds and hundreds of business... Read More
Gather round while I tell you the story of Kennebec... Read More
Many pressure washing companies will be glad to take on... Read More
This is the tale of two business plans with very... Read More
Small Business |