ACCOUNTING SYSTEM
FOR A SMALL BUSINESS

An accounting system for your small business is a must. Keeping your financial records for your small business can seem daunting at times. When you start your business, the best money you will spend is on an accountant.

An accountant will give you sound advice in setting up your bookkeeping and accounting records. He/she will also help you develop a sound financial plan. The financial plan should be included in your business plan. You can refer to the financial plan I developed in my business plan.

Your most important financial tool will be your cash flow analysis. A cash flow analysis calculates how much actual cash is coming in and out of your business. This will help you know how much cash you require to pay your monthly bills and an idea of how much cash you may need to borrow during a year of operation.

This is not as hard as it sounds. There is a really good software developed to help you with an accounting system. I have used QuickBooks Basic.QuickBooks for Dummies.

Another place to look for small business classes is the Small Business Development Center. The SBDC is part of the Small Business Administration. They have free counselors and free information that you may need when you are starting your business.

As I mentioned earlier, you need to have controls on your cash as it is the lifeblood of your business. Protection of your credit rating and keeping your business from becoming delinquent on its debts depend on careful cash management.

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