Starting a small business is one thing, but keeping your small business afloat is another. So how do small businesses stay afloat? Proper budget planning and bookkeeping!
- Budget Planning – Should help manage costs, gauge goals, as well as help forecast income and expenses. By updating your budget every month, you will be allowed to make positive changes to impact your budget, respond to any unexpected changes and tie incentives into the budget performance.
- Bookkeeping – Should include all business transactions to enable the IRS to evaluate and help to manage your business’s cash flows, expenses, inventory, receivables and payables, and employees.
In comparison of small businesses to bigger small businesses, there are many gaps! These gaps differ in each industry, but there are some gaps that are prevalent across all. Small businesses usually have 1-500 employees or gross anywhere under 20 million in sales. They either have a local base or niche market; and made up by roughly seventy-five percent of sole proprietors. It’s up to the owners to address the problems in their business, while they mind the gap!