Tips For Business Owners

Tips For Business Owners
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There are ways to protect your company, as a business owner.
Tips For Business Owners
CONTROL YOUR CASH FLOW
By signing all checks yourself, you keep your fingers on the pulse of your cash flow – especially in a small business. If you are in a partnership have at least two of the partners co-sign checks.

PREVENT FORGERY
A clear signature when you’re signing checks is important. A clear signature, especially one with a sense of personal style is distinctive. A wavy line with a couple of dots is easy to forge.

AN IMPORTANT STEP TO HELP PREVENT IDENTITY THEFT
Be sure that you review your canceled checks before anybody else sees the monthly bank statement. A business owner can determine whether someone is forging signatures on checks by being the first to open the bank statement and reviewing each of the canceled check signatures.

GETTING HELP
Find a bookkeeper that knows how to balance a checkbook and work with a computer, using software you can understand.

SETTING UP THE BOOKS
Choose an appropriate accounting system. Use either cash-basis accounting or accrual-basis accounting. Cash basis is fine when a business’s cash flow mirrors its sales and its cash outflow mirrors its expenses. When you’re buying and selling inventory, accrual-basis accounting works better than cash-basis accounting. QuickBooks is a great small-business accounting program, but if it doesn’t fit all your needs, you may want to use one of the more complicated, but also more powerful accounting packages. Your accountant or bookkeeper will know about industry-specific packages. Or, you may also want to use a system that is less powerful, just make sure you are taking your future needs into consideration so that you aren’t replacing a “too small” program too quickly.

ACCOUNTING BUSINESS BASICS
Keep things as SIMPLE as possible. Keep them simple enough that you can easily tell whether your business is healthy and you are making money. Monstrously complex financial systems don’t produce a profit when you consider all the costs to maintain, train staff, etc, and they almost always turn into management and record keeping into headaches.
By signing all checks yourself, you keep your fingers on the pulse of your cash flow – especially in a small business. If you are in a partnership have at least two of the partners co-sign checks.

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