Home Business Record Keeping – Know What’s Important

Reasons Why To Keep Good Records

Good record keeping provides a documented transaction history of your business. It offers you the following valuable information and benefits:

1. SALES DATA… Good sales monitoring is critical to your business. It provides historical data, for the week, month, quarter and the year. It will show you whats selling and what’s not. Proper record keeping gives you the information on areas of growth, decline or stagnation. You can spot trends and trouble spots in advance, which allow you to make the needed changes, keeping things under control.

2. EXPENSES… Depending on how you track your expenses, its history allows for you to decide if they are justifiable, normal or excessive. You can pin point patterns and questionable items. Catching them before they get out of hand.

3. CHECK BOOK… Keeping an up to date check book register, provides back up support documentation in the event you missed something in your regular postings When writing a check, don’t forget to post the type of transaction. Such as equipment purchase, travel, or Inventory. This historical information saves you future headaches. If you use a debit card, record the transaction as you would a check.

Your home business record Keeping is a valuable asset for monitoring the activity and trends of your business. It provides you with historical information needed to manage your business.

OTHER BENEFITS

Good record keeping practices will help you with the following:

a. Knowing the current Health of your business

b. Having at your fingertips, information for preparing Financial Statements required by banks and creditors.

c. It allows you to keep track of deductible expenses.

d. It provides needed information for preparing your Federal and State taxes. It provides you with supporting documents on items reported to the Internal Revenue Service.

Just think of your Home record Keeping system and activities, as having at your disposal a good compass and map. First of all, you need to now where you’re at now and in what direction your headed. These tools allow for you to track your business path, being on the lookout for obstacles and making the adjustments to keep you in headed in the direction for success.

WHAT RECORDS TO KEEP

Sales… Keep all documents, related to the money coming in to your business. Such as, Sales slips, Invoices, Charge card transactions, cash register receipts.

Expenses… All items related to cost of doing business. excluding items purchased for Inventory. Credit card transactions, Invoices, Account Statements, cancelled checks, cash register receipts etc.

Inventory Purchases… Merchandise purchased for stock and resale. All material used to manufacture a finished product for sale. Keep copies of Purchase Orders, cancelled checks, Invoices, charge card slips and cash sales receipts.

Business Assets… These are purchases such as office equipment, tools and machinery, store furnishings, displays, and real estate required for the running of your business. Much like the other categories, keep copies of purchase orders, Invoices, canceled checks and real estate closing statements.

Tax Returns… Keep copies of your State Local and Federal income tax returns along with State and Regional Sales tax returns and all returns for Employment tax.

You should keep these documents for five (5) years, longer preferably.

OTHER DOCUMENTS

a. Business Permits and Licenses

b. Contracts involving Sales, Rentals, Maintenance etc.

c. Estimates and Bid proposals

d. Insurance policies, such as Health, life, Workman Compensation

WHAT HOME BUSINESS RECORD KEEPING SYSTEM TO USE

How you keep your records depends on the type of business you have. There are many ways, from simple journals, to computer software like Quicken, Peach Tree and Quick Books. It depends on your what feels best for you.

My suggestion would be to visit a book Keeping service and tax preparer. Sit down with them and pick their brains with all your questions. You may learn that it would be of value to hire a service. Saving your valuable time for running your business.

If you’re one to attempt it yourself. Visit an office supply store, check out the manual systems available, or you can adapt one to fit your needs but observing the for sale products. Research the differences of software programs. Determine what meets your needs and budget.

Remember you don’t need a fancy system… just a system that provides good documentation of your business transactions.

Increased Traffic To Your Business

Tips on how to increased traffic to your business.

Do you know anything about Web 2.0? Well, this is actually referring to any website which allows people to post the content written or generated by them. It means that there could be things such as entry of Wikipedia, or a simple profile in MySpace. Web 2.0 is getting more and more popular because the website owner is no longer the sole editor of the website. The users now could take over the control of the website and edit the content and share with others through this type of Web.

With the help of Web 2.0, you could increase the presence of your website and the name of your business. As you know, there are numerous website established in the world of Internet and without good reputation, your website could hardly be ranked top in the pages of the search engine. Of course, SEO would help a bit for winning a high ranking in the search engine but the most important thing is to have a reputation well established among people in the Internet world. And if you work on your own you could hardly do this.

Therefore, websites with Web 2.0 platform would help. These large websites would have a lot of sound recommendations from people in the world and they would enjoy a better ranking in the search engine result page. If you try to post something in these websites with suitable keywords, the appearance of your name to your target customers would be more frequent.

Of course, the ultimate goal for posting content in Web 2.0 platform is to let your potential clients know the existence of your business and get into your business website and eventually purchase from you. Therefore, you have to figure out the way to do so.

In many Web 2.0 platforms, there is a resource box. In the resource box, you could have a brief introduction about your business or yourself. This would be the precious chance for you to mention something about your business and provide a link for them to go to your website to read more.

Of course, you might try to post a hyperlink to your business website in the content of your post. But you have to check whether this would violate the terms and conditions in the contract you accepted when you signed up with the website. If yes, you would risk for a deletion of account and this is something that you would not want to see.

When you are posting the articles or other content in the websites of Web 2.0 platform, you should treasure for high quality of articles. Even though the articles of poor quality might still be posted, you should provide good ones if you want to attract your readers to visit your own business website and purchase products or services from you.

Web 2.0 websites is widely used by online business owners to promote their business. If you are operating a business online, you should not be lag behind so you should sign up for those website as soon as possible.

The more you research the more knowledge you gain to make your business become successful.