- Not deducting ALL business expenses.
- Claiming non-deductible expenses.
- Forgetting to keep track of expenses.
- Failing to report cash.
- Not tracking meals and entertainment properly.
- Tracking fuel vs. mileage.
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- Always strive to be better tomorrow. Never be complacent in your success.
- Don’t let your ego get in the way. Don’t be afraid to hire people that are smarter than you.
- It’s a business first. If you love it and it’s your passion, that’s great. Remember, it’s a business first so get compensated properly.
- Surround yourself with the right people. Build a team of those you admire and can grow from. Eliminate the negative influences.
- 90% of something is better than 100% of nothing. Don’t let perfection get in the way of progression.
- Educate yourself. Continuing education in your field is extremely important to stay ahead of your competition.
- Economic entity assumption – Personal and business transactions will be kept separate. As well as, each economic entity.
- Monetary unit assumption. Financial records shall only include transactions with a dollar value.
- Full disclosure principle. Past, current, good and bad. All must be reported in the financial reports, including notes if necessary.
- Time period assumption. Businesses will report in such time periods, such as monthly, quarterly, yearly or other, as to best report transactions.
- Revenue recognition principle. Revenue is earned and recognized when service or product is delivered, not necessarily when cash is received. (Following the Accrual basis accounting.
When is enough good enough?
Know your “break-even” point! By keeping this at the forefront you are helping create goals for your cash flow. Focusing on these goals can help you make decisions on how to spend start-up capital.
Always maintain a cash reserve! Every startup experiences downfalls. Having reserves helps you prepare for those downfalls.
Collect receivables immediately! Make invoices due immediately or no longer than 15 days. Follow-up on receivables to get money in as quickly as possible.
Offer discounts for early payment! Discounts can encourage people to pay early, helping increase your cash flow.
Extend payables where you can! Work with your suppliers and vendors to get the best deal possible and extend payment to net 60 or longer.
Welcome To The World Of Bookkeeping For Your Home Or Business. Our goal for our clients is to understand the past and the future of their bookkeeping data: We help our clients to understand how to make educated decisions for the future of their business, and we offer a wide array of solutions to solve any business pain point. All at our fingertips!