Join Jim Stice for an in-depth discussion in this video Record keeping, part of Finance Essentials for Small Business.
- Let's now turn our attention to the next area…where new business owners tend to drop the ball.…That is the area of poor recordkeeping.…Most new business owners hate to worry…about the recordkeeping.…They would rather worry about customers, and sales,…and innovation, and growth, and everything,…other than recordkeeping.…Proper recordkeeping and internal controls…are the blocking and tackling of new businesses.…Not very glamorous and not very interesting,…but, it needs to be done,…and it's safe to say that it needs to be done well.…
When I graduated from college with a degree in accounting,…oh, so many years ago,…I naively assumed that businesses existed…so that accountants could account for them.…Accounting was the center of my universe at the time,…and I incorrectly assumed it was the center…of everyone's else's universe as well.…I couldn't have been more wrong.…I quickly learned that while proper recordkeeping…and adequate internal controls were essential…to the successful running of a business,…those features were not the business.…
- Describe the most common reason small businesses fail.
- Identify two reasons why your business plan needs to budget cash inflows and outflows for the first six months of your business’s operation.
- Write the formula to forecast cash flow for the first four months of your small business.
- Explain the first step you should take if your new small business is not making the profit you anticipated.
- Identify the most important thing to keep in mind if you are considering faster growth for your small business.