Create a Business Recordkeeping and Accounting System

As you review financial reports, how do you know when to act? Here are some guidelines to help you make financial decisions.

• Are your expenses increasing?
  If any expenses are increasing as a percentage of sales, it might be a sign that you are spending too much money in this area. For example, if office expenses go up, you might need to hold back on spending in this area.
  
  
• Are sales decreasing?
  Sometimes sales just go down, at certain times of the year. If you see sales declining, and there is no reasonable explanation, you may need to investigate.
  
  
• Are liabilities increasing?
  If you see that liabilities are increasing more than expected, you may want to investigate.
  
  

Index: Create a Business Recordkeeping and Accounting System

1. Find Business Accounting Software
2. Decide Who Will Do Your Business Bookkeeping
3. Create a Chart of Accounts
4. Capture All Accounting Information
5. Check Information for Accuracy and Completeness
6. Record Financial Information in Your Accounting Software
7. Review Your Financial Reports Regularly
8. Act on Your Review of Financial Reports
9. Meet with Your Tax Professional Regularly
10. Run Tax Reports and Pay Business Income Taxes