Accounting Information

By Lisa Page

Businesses go under or go bankrupt, because of poor management and poor mapped out goals. You need to have a clear set of daily goals. Management should be in charge of making sure each set of goals is achieved. If management falls behind, so does the business.

Another thing I see; is when a business first starts out and the owner is paying them self a huge chunk of change, but puts nothing back in to the business. You have to put money back in to the business when you first start out. Most of your profit for the first few months should go in to the business. Pay your business expenses and employees, if any. Then put the rest of the money back in to the business. It is called growth and expanding. You may see no need to put money in to your business. But you do need to put money in to any business to keep it going properly.

I usually put about 20-50 percent of the profit back in to the business for the first 6 months. After six months, you can relax and put 20-30 percent in to the business. Everyone is different, because all businesses are different. Set out your spending and profit margins on a checklist. Figure out how much you are spending for business expenses. The rest should be used to benefit the business, if you can help it. Sometimes, needed circumstances call to dump money in to the business.

If you put a percentage of your weekly profits in to a seperate account, you can manage it a lot easier. Don't touch this money, except for business expansion. You may want that new computer desk. But you probably need the computer more. Without the computer to work, you don't have a use for a new computer desk. Get it? Buy the things your business needs at first. When you save all that profit, you will be able to buy the things you want, later down the line. You can do lots for your business, if you don't pay yourself for a few months.

Take that pay cut now. Make up for it later. Your business will thank you. And you will thank yourself later. Get in to a regular habit of putting a certain percentage of your profit in to another account every week. You may want to purchase a new web domain or host, whatever the case may be. If you have money put away, you can use it. Obviously a web domain or host is much needed if you are working online. Always put your business first. If you keep this in mind, your business will prosper. Don't go bankrupt before you get started.

I hate seeing businesses with so much potential get ruined by greedy leaders. The people in charge should not be greedy when they start a new business project. The most important thing to remember is; don't take needed money away from your business. If your dream mean so much to you; Why take away from dream. Feed your dream!

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