Business Finance Articles

Many microenterprises and solopreneurs believe they are too small to need a working budget.
Some start-up owners who are busy launching their operations think it’s a waste to spend time developing one.
And some small and medium-sized enterprise owners reason: “It’s just a shot in the dark, anyway.”
But no matter how small or entrepreneurial your business, you [...]

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Reconciling accounts is the process of verifying that your financial records are accurate and that your books are consistent with what your bank statement shows. You should reconcile your accounts every month to stay on top of cash flow and to avoid any nasty surprises from your bank. The following tips might make the process [...]

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A receivables aging schedule reveals patterns of delinquency and shows where you need to focus your collection efforts.
The longer accounts receivable (AR) languish, the more likely funds are to become uncollectible.
Accounts receivable are sums due from customers from the time of sale until the receipt of payment.
The time period and the terms of every receivable [...]

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If you’re expecting a personal income tax refund, it’s smart to file your return on or before April 15 and get your refund back as soon as possible. If you can’t complete your tax return before the deadline, however, filing an extension will buy you six additional months to file the return.
It is better to [...]

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Depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors.
Although depreciation recognizes the decline in an asset’s value, the cost allocation process used in accounting for depreciation bears little or no relationship to [...]

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From the perspective of the Internal Revenue Service (IRS), a sole proprietorship isn’t a taxable entity. Assets and liabilities of the business are treated as belonging to the owner. As a sole proprietor, you report the profits or losses of your business on your personal income tax return, Form 1040. Your earnings are subject to [...]

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With all the sophisticated bookkeeping, accounting and tax preparation software out there, you might think you don’t need to hire an accountant for your start-up small- or medium-sized enterprise. Think again.
An accountant is not a superfluous business expense. An experienced professional accountant who understands how to run a business in today’s economic environment can be [...]

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Knowing your sales tax obligations is an important part of running any type of business. But the myriad taxes can be confusing to even the most astute professional.
A sales tax is a duty imposed on a retail sale or market transaction. There are several categories of sales taxes, based mainly on whether the tax is [...]

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There are several important year-end accounting, bookkeeping and administrative chores owners of small and midsize businesses must take care of before popping the champagne cork to ring in 2010.
Many tasks should be handled as close as possible to the calendar rollover. Don’t procrastinate. Schedule the tasks and make it a priority to get them done.
Several [...]

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When used properly, business credit cards can be a powerful financial and strategic tool for small-business owners. In addition to providing a cash infusion or capital for emergency purchases, using a business or commercial credit card can be a sound business strategy.
Business owners often rely on credit cards to deal with lumpy cash flows or [...]

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