Small Business Accounting Explained

Below we give you some tips on how to make small business accounting more bearable for you.

First, you should make a list of all accounting tasks to perform in your business. Once you have your list, small business accounting is less stressful and takes less time. You will only have to perform one or more tasks at regular intervals (daily, weekly, monthly …).

We also recommend that if do not know a lot about small business accounting, learn the basics.

Small business accounting is a specific jargon and all sorts of words and concepts reserved for the experts. Do not be discouraged if you do not understand them all. Get used to the most basic concepts directly related to successfully improving your small business accounting. Ultimately, the goal is that you increase profit. It is the primary goal of any business. Request help from a professional if you want, but do not miss the basic concepts.

In contrast, it is a mistake to become a super fan of small business accounting. The company does not come down to accounting. There are firms and professionals who do this very well. This is not the job of an entrepreneur to be a know-it-all of Management or Accounting.

The third golden advice is to separate your personal finances from your business finances.

It is a bad idea to mix your personal account and your business account. Separate them completely: even if you’re the sole shareholder in the company, even if only your money is put into the pot. This separation enables you to plan, predict, without confusing personal cash and professional cash. This allows a lucid view of the true accounts of the company.

Finally, you must be consistent.

It may be hard to get used to at first but we recommend that once you create an accounting system for you, you should stick to it no matter what. Remember to register everything, forget nothing, and be consistent. If you are not consistent you will start doubting your own system later which will not help you when you want to evaluate your business performance at the end of the year. It is a good idea to meet with your accountant to have him or her verify the information. 

What Can I Do to Avoid Business Bankruptcy?

Making an attempt to avoid business bankruptcy is all too common among tiny firms that are owned and controlled by folk who place all they have on the line to be successful. Before they know it they can become caught in debt though the company looks to be thriving. Many though trying their hardest to avoid business bankruptcy will ultimately become a victim of a business bankruptcy option. Little firms are the heartbeat of the state’s economy and America can barely afford to have so many broke firms filing in the courts. For many entrepreneurs, it’s unhappy to see the demise of their dream. They wildly juggle payments to creditors to avoid approaching bankruptcy.

Incredibly, many economic firms are prepared to barter the debt owed them helped by pro, credit counsellors. In many cases the bartered debt can be as little as a few cents on the buck. Though banks may not receive the full debt owed them, it is far better than if the business requested bankruptcy. If that were to occur, they’d lose all of their investment. Credit support services can work out an acceptable payment a businessman is capable of meeting. Should entrepreneurs default on this payment agreement, all assets will then be sold and any cash is directed to the banks.

One of the options available in order to avoid business bankruptcy is finding loans with favorable rates to help you ride out the storm. Another way to avoid business bankruptcy is to look around for expendable assets that you can sell to raise extra cash. If you have employees, consider cutting incomes anywhere from five p.c. to ten p.c, and stop paying yourself until the business starts to rebound.

Where Do I Turn To?

Another trend to avoid business bankruptcy is to search out angel stockholders. Stay solvent help that appears too good to be true. If it looks to be too straightforward, there could be some type of catch. You will have to pay a commission of 8% to 12%, but a business broker will help you price the business correctly. A business broker will also market the business for sale, qualify potential buyers, and work to get the deal to closing. A good broker will significantly increase the chances that you will sell your business.

You may want to consider this option to avoid business bankruptcy. Talk to your customers ; ask them what you can do to keep their business. Consider lowering costs or shorter delivery times be it a product or a service.

How to Start and Grow Your Own Auto Tow Truck Business

Owning your own auto tow truck business can be an extremely lucrative business. Entrepreneurs that operate auto towing businesses typically enjoy stable profits. Auto tow truck business owners can begin their operation with one truck, a business plan, a business license and insurance. There is always a need for vehicles to be towed. This results in a stable, practically recession proof business for many business owners. On any day of the week there are a number of vehicles that need to be towed for a variety of reasons. Reasons may include the following:

Vehicles are repossessed.
Vehicles may be abandoned.
Vehicles are parked in no parking areas.
Vehicles are immobilized due to accidents.
Vehicles regularly break down due to mechanical problems.
Vehicles may illegally parked due to violating street cleaning regulations.
Vehicles may have been driven by motorists arrested for various reasons.
Vehicles may be illegally parked with major parking violations such as fire hydrant blocking, etc.

If you start your auto tow truck business with one truck you won’t get in over your head too soon. With one truck you can manage your costs and determine if your actually net income matches your projected income based on your business plan. This also gives you an opportunity to examine weaknesses in your business if any. It also allows you to determine your strengths. This self-assessment is important because if you are aware of your strengths and weaknesses, you can make adjustments where necessary.

When starting an auto tow service business you will need to establish hours of service. You may need to offer 24 hour service if you plan to secure contracts with local and state government agencies. Government agencies as well as many businesses request 24 hour towing service capability as cars need to be towed 24 hours each day.

You can successfully operate a 24 hour operation with one truck. However, you will need two drivers. This way the hours can be divided into two 12 hour shifts for each. Therefore, each person can be on call for twelve hours each day.

You must promote your business so you should have promotional material. This should include at the very least business cards. You should call on companies that need towing services. This should include auto repair companies and other companies that need towing services including government agencies.

As your business becomes more profitable you should look for ways to increase your income. This can be accomplished by hiring more drivers and purchasing additional vehicles. The safest way to do this is to add one additional truck and one or two drivers at a time. This is what many small business owners with limited capital choose to do.

Prior to purchasing another truck you should have determined that the business income is sufficient to accommodate the purchase of an additional truck and the additional equipment required to do the job successfully. Also, there are the increased insurance costs. All additional expenses should be taken into consideration. Taking the time to build your business slowly is often the best road to success.