It’s one thing to learn how to make money and how to save money, but you cannot ever be sure if you’re really doing so unless you’re able to properly account for every penny.
Money management isn’t merely about accounting however, it is, as its name suggests, concerned with managing the flow of money through your organization. It not only measures income versus expenditure, it manages expenditure. After all, keeping proper records of everything is important, but what good are they when all they do is give an accurate portrayal of indebtedness?
The figures can’t lie. They provide a clear indication of the health of your business. For a home based business you probably don’t need an accountant except for your annual returns. In many cases a simple double-entry bookkeeping system is all that’s required, logging money in and payments out.
Although employing professional accounting services will become more and more important as your business grows and expands you still need to know and understand the basics of accounting and finance in order to truly know and understand what is going on in your business. This section has been created to help you do just that.
Biz Guru : August 31, 2011 6:25 pm : Money Management
Previously we spoke about financial planning for home businesses, all about the types of insurance you will need to consider, about what to look for when setting up a bank account, the importance of keeping proper accounts and records and how to use them to work out what your expenses are and what your rates and your wages ought to be.
Now we’re going to look on the actual transaction side of things. We’re going to talk about the different types of payment options available and the pros and cons of each, and we’re also going to talk about the various steps which you ought to follow to ensure you are always paid the agreed amount, on time, every time. more »
Biz Guru : August 31, 2011 5:46 pm : Money Management
When setting up your home business, or working as a freelancer, you will need to prepare a financial plan.
For many people, particularly those coming from a corporate or administrative background, this will seem like second nature. For others, particularly those who are more idea-focused and creatively-minded, this can seem like something of a chore. It is a vital step, however, to ensure your long term success as well as your continued financial security.
Financial planning is a rather broad topic, and it is something we will be returning to again and again in future posts, for now we are going to offer a brief overview as to what you need to do getting started with your own home-based enterprise.