Budgeting and Accounting Control
By Rosemary Peavler, About.com Guide to Business Finance
After your startup or existing business gets going, you have to develop your financial controls. You establish your budget and your accounting system. You will probably want to set up a computerized accounting system and it's important to choose the right one. You have to understand accounting basics in order to use it. You want to establish a realistic budget since you will be operating with limited funds, especially at first. Financial control will be your mantra as get your business underway.
- Income Tax Information for 2009
- What is a Business Budget?
- Types of Business Budgets
- Managing Your Cash
- Managing Inventory
- Cost-Volume-Profit Analysis
- Understanding and Preparing Your Financial Statements
- Tax Tips to Follow After April 15
- General Income Tax Help
Income Tax Information for 2009
Here is resource information for doing your 2009 income taxes. Even if you have an accountant or another financial professional do your taxes, you have to produce the information that allows the financial professional to put it all together.
What is a Business Budget?
Business budgets allow you to control the financial flows, or cash flows, in your business instead of allowing your business to control you. If you are going to make a profit, you have to design a system to allow that to happen. That system must operate within a system of financial controls so that your goals are reached. You set up performance standards in order to communicate to yourself and employees what is expected in order to meet your profit goals. The performance standards are the building blocks of your business budget. The budget is a detailed statement of financial results expected for a future time period.
- Prepare a Working Financial Budget for Business Success
- Use this Business Budget Worksheet to Plan Your Budget
- The Reasons for Business Budgets
- Make Your Business Budget Work
- Budgeting Tips for Tough Economic Times
- Frugal Ideas for Your Small Business During the Recession - and After!
Types of Business Budgets
The overall business budget is, of course, the financial budget. But, there are several parts to the financial budget. There is the capital budget which deals with the large expenditures a business makes, such as purchases of buildings or land. There is the operating budget which deals with profit plans for the budget period. There is the cash budget which is a forecast of expected cash inflows and outflows on a month by month basis for the small business. All of these budgets include short-term versions and long-term versions.
- How to do a Cash Flow Budget
- Example: How to do a Schedule of Cash Receipts
- Example: Blank Worksheet for Schedule of Cash Receipts
- Cash Budgeting and How to use it
- Cost-Effective Marketing Budgets
Managing Your Cash
After you get your business off the ground and develop your budget, nothing is more important than managing your cash. If you don't have liquid assets, or cash, at the end of every month, you won't operate the next month. You may need cash to pay suppliers or any other number of reasons. The best way to keep track of your cash is regular preparation of a cash budget. When you prepare your financial statements, you also have to prepare a Statement of Cash Flows. Both give you invaluable information.
- Managing Your Cash Flow through Good Financial Liquidity Practices
- Cash Management is Important for Your Small Business
- Cash Flow - Comprehensive Definition of the term "Cash Flow"
- How to Bootstrap Your New Business
- How to Increase Your Cash Flow
- Maintain a Healthy Cash Flow
- Cash Budget vs Statement of Cash Flows - What's the Difference
- The Difference Between Cash Flow and Profit and Why It's Important
Managing Inventory
Inventory is one of the most important and one of the most problematic assets for a small business owner to manage. There are issues of how much to invest in inventory, how to account for it, how to track it, how to price it, and more.
Cost-Volume-Profit Analysis
Cost-Volume-Profit analysis is a type of cost accounting that is important for small business owners. It allows the small business owner to determine how changes in volume and costs affect the company's operating income and net income. It is a powerful tool for good financial management.
- Fixed and Variable Costs
- Calculate your Company's Breakeven Point
- What is the most difficult breakeven variable to estimate?
Understanding and Preparing Your Financial Statements
Once you get your business set up and get a general idea of your budget, you have to learn to understand and prepare your financial statements. You will need to prepare, or have your accountant prepare, an income statement, statement of cash flows, and balance sheet. Even if your accountant actually prepares the statements, you'll do most of the work because you do the record keeping.
- Financial Statement Analysis for Your Small Business
- The Accounting Cycle
- How to do an Income Statement
- How to do a Balance Sheet
- The Relationship Between the Income Statement and Balance Sheet
- Get Ready to do the Statement of Cash Flows through Comparative Balance Sheets
- How to Prepare a Statement of Cash Flow
Tax Tips to Follow After April 15
Tax planning doesn't stop on April 15 of each year (unfortunately!). In order to pay as little tax as possible and to comply with federal and state government regulations, you have to plan for your taxes all year long. Here are tips on things you can do and have to do after April 15 to maximize your income, minimize your taxes, and stay up-to-date with Uncle Sam and your state taxing authorities.
- How to Prepare and File an Amended Tax Return
- Get Your Employer ID Number!
- Prevent the IRS From Auditing Your Business
- 10 Tips for Income Tax Planning All Year Long
General Income Tax Help
One of the reasons good record keeping is so important is so you can accurately report and pay your income taxes. As a business owner, you have to pay federal state, local, sales, and payroll taxes. Each requires a fair amount of work on your part. Here is some general income tax information you can use when you are setting up your business and as you run your business.
