General Business and Finance Blog

If you are involved with any business, then you may have come across some occasions where you did not have any funds to perform some of the tasks. Arranging finances and exploring newer options is always going to be a tough proposition. But now with small business finance, you can easily overcome the problem of cash deficit. The loan is designed to finance all your business requirements without any considerable delay.Small Business Finance is offered to all kinds of borrowers. It incorporates existing business owners as well as individuals who are new. Based on the need and requirement you can employ the services of the finances to meet any demands like purchasing a property, construction of store house, making payments towards the staff, paying off debts, promotion, furniture’s etc.

The finances are easily available and are accessible in two forms i.e. secured and unsecured. If the finances required are large then it is preferable to opt for secured option. This option can only be availed if you are ready to pledge any valuable asset as collateral. Based on the equity value of collateral, lenders approve the amount. The presence of collateral assures the lender that the amount is safe and the lenders in turn lower the interest rates. This is of course very beneficial.

If in case the financial requirement is not very large and you need it on a short term basis, then you can apply for unsecured form of the finances. This option does not require any collateral and paves the way for borrowers like tenants and non homeowners. Since these loans are approved without any collateral, interest rates for the loans are slightly higher.

The finances are available in the financial market and can b e sourced from various lenders like banks, financial institutions and other. But with the introduction of online mode, most of the borrowers prefer to avail the finances using the online mode. It is because the application form is simple and you can access the amount in quick fashion. Before availing the finances, you must not forget to compare the quotes to arrive at a better deal.

Before opting for the small business finances, you must make a plan on the basis of which you can derive the exact required amount. Other wise it may create some problems while repaying.

Loose papers, receipts, notes, credit card bills, financial statements, tax returns – these are the byproducts of owning a business.  They take up space on your desk and in your mind and every time you look at the litter you feel disorganized. 

Before I created a system to organize my business paperwork in the manner I’ll soon explain, I felt disjointed, out of whack, and like I never got anything done.  I’d walk into my office and want to turn right around and walk out. 

Is there a better way to organize your business finances? You bet.  Follow the steps below to create a simple, yet functional way to organize your business and live a more carefree life.

Step 1 – Get a Binder – Purchase a three-ring binder based on the volume of paperwork you produce annually.  A 1.5” or 2” binder would be adequate for most businesses.  You will use one binder for each year you are in business, so that every detail pertaining to your business that year is in one place for easy retrieval.  In the viewing window type a cover that shows the name of your business and the year.

Step 2 – Get a Three Hole Punch – Purchase a three-hole punch. This is to hole punch all larger receipts, documents and financial statements and have them fit neatly into your binder.

Step 3 – Get a Zipper Compartment – Purchase a plastic zipper compartment from an office supply store to hold small receipts.

Step 4 – Purchase Accounting Software – Get yourself accounting software so that you can track your finances.  Professional business owners track their profits and losses using the right tools and analyze their financials regularly.  I recommend QuickBooks, but there are others such as Peachtree, Microsoft Office Small Business, and Simply Accounting. Try to begin tracking sales and expenses from the beginning of your business or the beginning of the year.

Step 5 – THE SYSTEM: Arrange paperwork in your binder according to month.  Keep all receipts, credit card statements and bank statements (make sure to reconcile these monthly), and sales tax reports (if you sell products).  At the end of each month, run a Profit and Loss Statement and a Balance Sheet (collectively known as Financial Statements).  The Financial Statements become the separator for each month.  File small receipts that can’t be hole-punched in the zipper compartment at the back of your binder.

Step 6 – CLOSE IT OUT – At the end of each year, reconcile your accounts, print your annual Financial Statements, and close out your year.  Put the binder away and start a new one for the New Year.  Give your accountant or CPA a copy of your QuickBooks file to prepare your income tax return.

Tips:

The system above is one way to organize your business finances.  If you would like to go beyond this system and organize your business for financial success, you may want to consider writing a Business Plan.  I have created a plan that incorporates Goal Setting, and heavy Branding and Marketing with My Success Book – a built-in Daily Action Planner to encourage accountability and results.  Find it here: www.twopageminibusinessplan.com.

©Copyright 2008- Suzanne Muusers – All Rights Reserved