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Organizing Your Business

Nov 6, 2007
Too many of todays small business owners are kept in the dark when it comes to the record keeping of their businesses. They hand off this unpleasant task to an accountant and keep their minds and hands free to do the more interesting and fun tasks associated with running a business. This can sometimes be unavoidable but it is in any business owners best interests to keep at least a working knowledge of the books. Anyone can fall victim to a less than scrupulous accountant. The more you know about your businesss records, the less likely you will be to become someones prey. Besides, with the knowledge and ability to take care of your books, you can cut back on what is oftentimes a very expensive bit of payroll.

There are many important aspects of keeping precise records of your financial dealings. Not the least of which is helping you avoid a major pain when tax time comes and the IRS wants to see your books. If you have not kept a clean financial record, it can be difficult if not impossible to claim some of the tax breaks your company is entitled to. Some companies ride so close to the black line, it can be those tax deductions that help them turn a profit for the year. Even if you are not running things that close, keeping a clean set of records can help you to maximize your companys potential at tax time. Most business experts will advise you to keep your records for a minimum of three years but this can be expanded to even longer when it comes to major transactions or those involving the stock market.

Keeping track of your business transactions does not have to be complicated or technological. For many years, businesses have managed the art of record keeping through a simple system of writing and filing. You can do the same or if you are more comfortable with using a computer and software then you can use that to make your record keeping even easier. A word to the wise, however. Computer files can be lost in a system crash or even a mistakenly pressed button. Make sure you take the time once a month or so to make backup files of all your important records. If you are in charge of a second business, make sure you keep the records separate.

Good, clean record keeping is vital to keep your business thriving financially and to make sure everything is going as well as you think it is. Day to day operations can create a can not see the forest for the trees mentality. If you have the records and an easy system with which to look back over your numbers, you will never have to rely on feelings and memory to know whether or not your business is doing well.
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Obinna Heche. Los Angeles - California

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