Financial Strategies

Loose papers, receipts, notes, credit card bills, financial statements, tax returns – these are the byproducts of owning a business.  They take up space on your desk and in your mind and every time you look at the litter you feel disorganized. 

Before I created a system to organize my business paperwork in the manner I’ll soon explain, I felt disjointed, out of whack, and like I never got anything done.  I’d walk into my office and want to turn right around and walk out. 

Is there a better way to organize your business finances? You bet.  Follow the steps below to create a simple, yet functional way to organize your business and live a more carefree life.

Step 1 – Get a Binder – Purchase a three-ring binder based on the volume of paperwork you produce annually.  A 1.5” or 2” binder would be adequate for most businesses.  You will use one binder for each year you are in business, so that every detail pertaining to your business that year is in one place for easy retrieval.  In the viewing window type a cover that shows the name of your business and the year.

Step 2 – Get a Three Hole Punch – Purchase a three-hole punch. This is to hole punch all larger receipts, documents and financial statements and have them fit neatly into your binder.

Step 3 – Get a Zipper Compartment – Purchase a plastic zipper compartment from an office supply store to hold small receipts.

Step 4 – Purchase Accounting Software – Get yourself accounting software so that you can track your finances.  Professional business owners track their profits and losses using the right tools and analyze their financials regularly.  I recommend QuickBooks, but there are others such as Peachtree, Microsoft Office Small Business, and Simply Accounting. Try to begin tracking sales and expenses from the beginning of your business or the beginning of the year.

Step 5 – THE SYSTEM: Arrange paperwork in your binder according to month.  Keep all receipts, credit card statements and bank statements (make sure to reconcile these monthly), and sales tax reports (if you sell products).  At the end of each month, run a Profit and Loss Statement and a Balance Sheet (collectively known as Financial Statements).  The Financial Statements become the separator for each month.  File small receipts that can’t be hole-punched in the zipper compartment at the back of your binder.

Step 6 – CLOSE IT OUT – At the end of each year, reconcile your accounts, print your annual Financial Statements, and close out your year.  Put the binder away and start a new one for the New Year.  Give your accountant or CPA a copy of your QuickBooks file to prepare your income tax return.

Tips:

Only handle receipts one time.  Review them.  Record them in your software program.  File them in your binder.

Use one credit card for business and one for personal expenses.  This way you can maintain separate business and personal expenses.  If you ever need to carry a balance, you can easily determine the tax-deductible interest.

Consult with your accountant or CPA regarding what is and is not tax deductible.

Make an appointment with yourself one to two hours a week to do your business finance organization.  When you have room in your budget, hire someone to come in and do it for you.



The system above is one way to organize your business finances.  If you would like to go beyond this system and organize your business for financial success, you may want to consider writing a Business Plan.  I have created a plan that incorporates Goal Setting, and heavy Branding and Marketing with My Success Book – a built-in Daily Action Planner to encourage accountability and results.  Find it here: www.twopageminibusinessplan.com.

©Copyright 2008- Suzanne Muusers – All Rights Reserved  

iness owners develop their small business loan plans for future financing and refinancing throughout the United States, there is an increasing awareness that there have been significant business finance changes that cannot be ignored. Some of these measures are likely to end up being permanent, and even the temporary commercial mortgage loan and working capital loan changes are expected to be in place for an extended time due to the severity of the current financial climate.

The net result from business finance changes has been a reduction in commercial lenders as well as stricter standards for acquiring commercial loans and commercial mortgages. Unfortunately there has also been no shortage of misinformation about the availability of commercial funding.

A significant reduction in business lending activity overall is perhaps the most dramatic change. This has been due to several events occurring almost simultaneously. Several major commercial lenders have gone out of business altogether. Even though they have continued consumer lending, many banks have stopped commercial finance lending. Numerous business lenders have enacted stricter standards for the commercial financing transactions they are still willing to consider.

It remains to be seen how many changes will be permanent or temporary. But from a practical perspective, commercial borrowers are left with no choice but to adapt to the changing business finance environment. Business owners must be prepared to operate within a more complicated climate for commercial mortgage loans and small business loans regardless of how long the changes might be kept in place.

What should borrowers do about this? A primary option that business owners should explore involves looking beyond their local market area for help with commercial loans. A commercial financing expert operating throughout the United States should be helpful in improving upon this situation.

In addition to fewer business lenders to choose from, there are two other significant changes which must be anticipated by business owners before seeking new commercial loans. First, commercial lenders are increasingly demanding more collateral for virtually all business finance funding. Second, most lenders have cancelled or are about to eliminate unsecured lines of credit (usually called working capital loans) for many businesses.

Considering a business cash advance program based on future credit card processing transactions is likely to be an effective commercial financing strategy for overcoming the combined obstacles of more collateral, reduced unsecured credit lines and fewer lenders. This is proving to be one of the few sources of business funding that has not been adversely impacted by recent events. It will be productive to discuss the potential with a business finance expert who can provide advice about small business financing solutions including business cash advances and other financial options.

It is increasingly obvious that many banks will continue to modify their business lending programs in response to changing conditions. This means that another key change issue for working capital financing and commercial mortgages is the likelihood that more changes will be forthcoming in the near future.

To adequately prepare for future commercial finance changes that might (or might not) occur is a daunting task for a business owner. A commercial financing expert familiar with Plan B contingency financing for small business loans will prove to be a valuable resource for any borrower wanting to seriously deal with both current and future changes impacting the financial health of their business. By having a candid conversation with a commercial loan expert, business owners should be more capable of implementing an appropriate strategy for the vast changes which have recently occurred or are about to become effective for most business financing and working capital finance funding.

Paying for an organising a wedding day is one of the biggest undertakings in many of our lives. The day itself is a great celebration of the union of two individuals and families, but the preparation can be fraught with panic and worry. A lot of this worry tends to be concerned with the finances; the cost of a typical wedding can stretch to £20,000 and if something were to go wrong it can not only mean a dint in your big day but a major dint in your personal finances too. www.weddingplaninsurance.co.uk may not be able to ensure that everything runs smoothly but they can cover you should the worst happen.

Wedding insurance from www.weddingplaninsurance.co.uk can protect you against minor setbacks and major problems. With a variety of packages starting at just £19.99 it is possible to protect against flowers getting damaged, the dress becoming unwearable, or the whole event having to be rearranged. There are additional extras that can be added to your coverage, too, including ceremonial sword cover and marquee protection. Whatever your plans for your big day you can help protect them and make sure that you aren’t out of pocket in the event of unforeseen problems.