| Managing your business finances is extremely | | | | other financing. It's a good idea to have separate |
| important and because it requires different expertise. | | | | business checking and credit card accounts for your |
| Realistically, most business owners will require | | | | business expenses. It will be easier to track and |
| professional guidance to properly manage their | | | | justify your business costs for tax purposes. If you |
| business finances. The two most important | | | | choose to incorporate, you can protect your personal |
| associates for you to retain will be an accountant and | | | | assets from any business debt. Besides your |
| banker. An accountant will provide assistance in a | | | | accountant, you should consider outsourcing other |
| number of different key areas. He can oversee your | | | | finance functions such as payroll and bookkeeping. |
| bookkeeper, validating cash disbursements. You and | | | | Having excess inventory on hand can also drain you |
| your accountant will work together to develop a | | | | cash. Outside consultants can provide financial models |
| budget and cash flow statement. The budget will be | | | | to more accurately predict needs. Your banker can |
| used to ensure you have an adequate profit margin, | | | | help you with applying for both checking and credit |
| or you'll need to either change your pricing structure | | | | card accounts. You may also need business loans to |
| or reduce expenses. Your banker will also require a | | | | set up or grow your enterprise and every business |
| budget (along with cash flow statements) if you | | | | should have a line of credit in case of cash shortfalls. |
| apply for loans. The other crucial statement will be | | | | You should see if you qualify for a low interest loan |
| the cash flow statement which is a forecast of your | | | | from the U.S. Small Business Administration (SBA). |
| revenues and expenses by month. If you don't have | | | | The author would like for you to visit Certified |
| enough cash coming in each month to pay your | | | | Financial Planner Raleigh NC / Fee Based CFP Raleigh |
| suppliers, employees and other expenses, you will | | | | NC. |
| either need to have cash in the bank or arrange for | | | | |