In my practice I represent a lot of small business owners. Most of my clients are hard working self employed people. Many rush from one deal or job to the next. Some get into trouble that requires a bankruptcy to liquidate or reorganize their business.
What can get lost in this haste are some basic mandatory accounting skills all business owners need to manage their business. Get a handle on your books. This starts with solid record keeping and recording of your income and expenses. It cannot be avoided! Make sure you have a designated business account and a designated personal account and always keep them separate.
How do you do all this? Get help. Accounting can be dull and this is usually not the reason people go into business. My clients are busy and looking to grow their business, not keep books and records. However, you cannot overlook the value of a bookkeeper or accountant so that you have the solid data you need at your fingertips. You need "your numbers" to really understand whether you are growing with more debt, or becoming a profitable business. Having this data will help you understand your weekly and monthly trends so your can track your expenses effectively, to add or cut as need. You may even begin to start developing projections! This is why it is crucial to always track your expenses.
Please see the following suggestions from the article below for small business owners and do not hesitate to contact our firm for a consultation about your business.
Lee M. Perlman, Esquire
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