Hello, Good Life Divas!

Whether you know it or not, being organized plays an important roll in the success of your business. Being organized also keeps you well balanced and it reduces frustration. Entrepreneurs are responsible for managing every position of their business; from being the secretary, answering the phones to becoming the president, facilitating board meetings. If organization isn’t a part of the plan, everything can easily fall to pieces.

Organizing the finances of one’s company can be quite overwhelming at times. Most entrepreneurs just fly by the seat of their pants in one of the most if not the most important part of running a successful business with longevity. Not to mention staying organized also keeps you in compliance with all state and federal laws.

You can contribute to the success of your business financial organization by doing the following:

• Don’t co-mingle business and personal information. Make sure your company has a business checking account that has nothing to do with your personal transactions. Don’t make it a habit to use the company credit card for personal purchases, nor use your personal credit card for company purchases. When you co-mingle you allow room for errors, you allow room for recording incorrect financial information, not to mention, it’s a serious red flag to the IRS.

• Set up a filing system. You wouldn’t think that a filing system would play such an important part of your company financial organization, but it does. Important documents such as lease agreements, insurance policies, employee files, and credit card and bank statements should be filed in a safe place that’s easy to access. There are many reasons why you should keep a filing systems such as for-audit’s performed by state agencies, insurance companies can determine insurance rates; lawsuits, IRS audits, etc. You never know when you might need that one document you can’t find because you are not organized and don’t have files set up.
  Just because you don’t feel as though you need these documents right away, when dealing in the world of business, there are no limits to the possibilities of things that could happen. Plan to succeed, not fail!
• Use a “user friendly” accounting system. Do some research on a good, inexpensive accounting system that will take care of your business needs, which should also, capture your business records. Make sure the system you find will be suited for the type of work you do. This system should include records such as vendor and customer information, your business income and expenses; basically all of your business transactions. We recommend the number one leading small business user friendly accounting system, QuickBooks. If you’ve never used QuickBooks, but would like to sample it; email us at: info@priorities1st.com and we will be happy to send you a link so that you can try a sample download.

The bottom line is this. The more time you spend setting up your business to run more effectively and efficiently, the more extra time you will have to focus on the heart of your business. Having a good filing system and accounting system in place can save you time and money, prepare you for tax season or audits, and most of all allow you to know your bottom line! Visit our website Priorities1st.com to learn more on business financial organization and visit the IRS at www.irs.gov and search for publication 583.

Tortina Bunton - Your Small Business Diva
Priorities First, Inc.
www.PRIORITIES1ST.com

As the owner of Priorities First bookkeeping and accounting firm, Tina brings over 20 years of accounting experience in the construction industry with her. She helps small to medium sized businesses manage millions of dollars on a monthly basis. Tina has worked with various service and industry clients assisting them in reducing taxes and building strong successful businesses.

Do you have any burning questions for Tina regarding bookkeeping and starting your own business in the new year? Please, email your questions or comments to info@goodlifediva.com. Your questions will be answered in an upcoming Good Life Diva newsletter.