| There are so many different tips on the basics of | | | | what statement you're looking at, and you don't have |
| book keeping for new business owners, it's hard to | | | | to worry about confusing things. While this is obviously |
| figure out what's good, what's bad, and what's not | | | | your choice, it can make things easier. |
| worth your time looking. Let me help - these are our | | | | 2. Find a Good Software |
| top three basic book keeping tips, and they're all | | | | Do your really want to spend all the time it takes to |
| important for different reasons. | | | | manually write out your bookkeeping? Most people |
| 1. Keep Your Business and your Personal Separate | | | | don't - using a computer software program specifically |
| If you haven't done this already, then you need to set | | | | for bookkeeping can make your life a lot easier. |
| up a separate checking and savings accounts | | | | There are a lot of great programs out there, but for |
| specifically for your business. Many new business | | | | your business, there are a few that I can tell you from |
| owners don't realize how important this really is, and | | | | personal experience that won't help - MS Money being |
| how much of a difference it's going to make. | | | | one of them. While it's a great program for personal |
| If you're doing your own book keeping, as your interest | | | | finances, it doesn't do well with handling a business. |
| in this suggests, you probably think that the entire idea | | | | One mistake some businesses make is going with |
| of keeping your personal records separate from your | | | | Quicken, which is oversimplified. While it's an alright |
| business records is just going to give you one big | | | | program if you're doing your personal finances, or if |
| headache. But trust me, it's going to save you time - | | | | you're keeping things small, as you grow, it won't be a |
| when you go to gather all of your information at the | | | | good program to grow with you. |
| end of the year for tax purposes, having everything | | | | 3. EIN is your Friend |
| separate right from the start will make the entire | | | | Getting a federal tax identification number, or an |
| process run smoother. | | | | Employer Identification number, is a great safety |
| Signing up for online banking, as well as getting a paper | | | | precaution, and something most small businesses don't |
| statement every month, can save you time. It's very | | | | think about. It doesn't matter if you have an employee, |
| safe to check and bank online, and you can do things | | | | or plan on hiring one anytime soon. |
| like pay bills and look over statements with a few | | | | If you don't have one, you have to use your personal |
| clicks. While you should always have paper information, | | | | SSN for all of your business matters - and having that |
| too, going online makes the processes of banking | | | | number just laying around isn't a good thing at all. An |
| more efficient | | | | EIN number protects you and your family. |
| As a personal recommendation, having your personal | | | | Applying is easy. The fastest way is to go online and |
| accounts in a completely different bank then your | | | | apply through the IRS. It's easy, won't take you very |
| business accounts can be easier. You always know | | | | much time, and can save you a fortune. |