- Set up a spreadsheet to monitor your payables, receivables, and expenses.
- Avoid bad debts by monitoring closely how long you are waiting to get paid. Start sending reminders immediately once the account is past due.
- If your accounts payable terms don’t match up with your accounts receivable terms, your credit terms are out of sync. They should match closely.
- Lack of profits can, and if left go too long, will kill your business. Make sure you have taken into consideration all aspects of running a business when deciding what to charge your customers.
- In our opinion a cash-flow forecast is essential for new businesses. This is something your Weber Accounting and Tax Service can help you with. By creating a cash flow forecast, you will be able to easy determine if there are months when you can expect a cash deficit or surplus. It will also give you insight into how much cash your business is going to need to sustain itself over the next year. Furthermore, comparing your forecast to actual figures will be invaluable to your future success.
A home-based business is subject to many of the same laws and regulations affecting other businesses. Be sure to consult an attorney and your state department of labor to find out which laws and regulations will affect your business. For instance,, be aware of your city’s zoning regulations. Also, keep in mind, there are certain products that are prohibited from being produced in a home environment.
Most states prohibit home production of fireworks, drugs of any kind, poisons, explosives, sanitary or medical products or toys.
There are also registration and accounting requirements. You might also need a work certificate or license from the state (depending upon what type of business you are starting), a sales tax number, and a separate bank account.
If your business has employees, you are responsible for withholding income and social security taxes, and for complying with minimum wage and employee health and safety laws.
Susan A. Comko CPA LLC can help you with all of these.
- Executive Summary
- Business Overview
- Operations Plan
- Market Analysis
- Products and Services
- Sales and Marketing
- Competitive Analysis
- Management Team
- Exit Strategy