If you operate your small business as a sole proprietor (a single-owner company with no
legal distinction between the business and the owner), you are responsible for all
financial aspects of your company, including managing accounts payable and
receivable, tracking expenses and income, preparing tax returns, and issuing payroll.
The Importance of a Budget for Small Businesses
The most important thing in business is to have a budget. Without a budget, you can’t
really manage your finances. If you don’t have a budget, you’re not going to be able to
know how much money you’re earning or spending. You won’t be able to know how
much money you need to make in order to pay yourself.
Understanding Your Cash Flow Statement
A cash flow statement records the movement of cash in and out of your business. A
positive number on the cash flow statement is an indication that you’re generating more
cash than you’re consuming. A negative number indicates that you’re using more cash
than you’re making; in other words, your business is losing money.
Financial Statement to Track Business Progress
Financial statements are a great way to track your business’ progress and growth. They
allow you to compare the results of your business over time and see how different
strategies and decisions have affected your business. Financial statements can help you
determine if you’re making the right decisions with your business and help you plan for
If you’re a small business owner, you probably have a lot of other things to worry about
besides the financial aspects of your business. You can save yourself time and money by choosing one of our monthly bookkeeping plans.