photo by Stefanie Renee
Guest post by licensed Right-Brain Business Plan® Facilitator Lorene Purcy
You want to start making money real fast in your business. You’re going after customers like a race car driver is going after the checkered flag and you want to hurry up and recoup the money that you spent establishing your business.
The problem is that most small business owners don’t take the time to set up financial plans and budgets for their business. When the cash flow comes, most owners misappropriate the money and then find themselves in a financial crisis. Business and personal items aren’t separated and many owners get caught in a financial quagmire that they struggle to straighten out.
You should have projected budgets for your business. Some small business owners have the attitude that they don’t need planning as far as their finances because they keep all financial transactions in their checkbook. They have the thought that they are just a “home business” and that they don’t need QuickBooks or Peachtree Accounting Software to keep track of their finances.
Business Accounting is different from writing totals in your checkbook. In setting up your financial modules, you must look at trends, profit and loss statements, account receivables reports and any other report that provides a picture of where your business is financially. This should be done on a monthly basis and the accounts should be set up to automatically reflect the type of business that you are running.
As a small business owner, you should take advantage of the classes that are held through your city’s business and economic development offices. Most cities provide basic training in financial management and small business accounting. Most often, they will bring a banker or financial consultant to a meeting to talk to a group about the importance of business accounting and financial management.
You need to keep good financial records for tax purposes and for obtaining future financing. Many business vendors will request your corporate profit and loss statement before extending credit to your business.
As a small business owner, it’s imperative that you set financial goals and objectives so that you won’t be seeing red!
Known for a contagious passion for excellence,a talent for practical business solutions, and a competence for being a motivational leader, Lorene Collier Purcy, is an author, speaker, business consultant & life coach. Whether it’s life balance or financial management, Lorene has been helping individuals realize their true potential and acts as their accountability partner, assisting them on how to effectively implement strategies to live the life they truly deserve. You can contact Lorene at firstname.lastname@example.org or visit her online at www.savvychicksrule.com. Lorene is one of our licensed Right-Brain Business Plan® Facilitators.