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Accounting and bookkeeping are probably not why you became owner of your business.But whether you manage an ecommerce site or a neighborhood bakery, managing cash flow and finance is essential for a small business to be profitable.It is important to understand the amounts in and out of the business.

Here are some tips for keeping your accounts, so you can spend more time building your business and spend less time with your accountant.

Track your expenses

Whether you have an English degree or accounting, expenses of a business can be overwhelming. A good track expenses will allow you to maximize the amount of tax deductible and will help you enjoy all the benefits of running your own business. Pay your expenses with a credit card is a great way to track your business expenses. You get a receipt and your monthly statements are a second source indicating what you pay each month. Business owners should also consider using a credit card exclusively for their company in order to separate business expenses from their personal expenses. To help you organize and track your business expenses, consider using spreadsheets or software online. Also, when you are tracking your expenses, remember to classify them in different categories such as food, office supplies, and transportation. This will make your job easier when you have to prepare your tax return for the tax.

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Planning major expenditures

The launch of a company can mean immediate major expenses, whether computers, office supplies, vehicles or apparatus, according to the type of business. Add to that the inevitable expenses such as repairs and maintenance.Plan in advance such expenses by setting aside money now to be able to adjust later. For example, do you need a generator to turn on the lights in case of power failure? Will you need a new computer in two years? Will you need a bigger office? Think what you need, not the week or next month but in the coming years, and set money aside.

Put aside money for taxes

There are many surprises when you manage your business, but tax time should not surprise you. You know when the money will be due and if you track your financial documents, you will know about the amount you will pay. If you put money aside for in anticipation of the deadline taxes, you will not have to take out a bank loan or to limit your spending to repay this loan. Moreover, by paying all your taxes on time, you will avoid penalties and interest of the Canada Revenue Agency. This is a solid business plan.

Money Management For Business Owners : The 7 principles of efficient and effective business management

Focusing on the essentials, take care of the necessary and simply and quickly manage the rest The principles I will explain are not from books or courses, they are the precious fruit of bitter experience and a kind of professional resurrection. I even dare say that both their mind and in their formulation, they are contrary to the prevailing doctrine in major business schools. My approach has been since the beginning of my active life that of an autodidact and I’m proud. She fed large and small failures, restarts, fury and reflection. Develop equity principles from experience, rather than trying to apply a fine theory into a reality that never looks like what we imagined has always seemed more effective and useful. The main thing for me is not a beautiful well-built theory, but a determined and deliberate action. These are seven principles for successful management of your company:

1. Search lightness

It is primarily the lightness of the legal structure of the company: Consider first the Sole proprietorship, the simplest legal form, the lightest, least restrictive, least expensive. If risky, consider Sàrl and not to turn first to the SA, significantly more expensive in cost and capital and binding, even if it does well to own an SA. An entrepreneur needs to work a structure and a place to work or trade. It needs tools, machinery, computer equipment, etc. He sometimes needs staff. In short, it must put in place a structure that has a cost. The more these costs are, the higher its turnover must be high and comfortable margin. If he does not have sufficient capital, it will have to borrow. The principle is simple to state but difficult to implement: develop the lightest and least expensive possible structure. This is the first priority.

2. The relentless pursuit of efficiency

The effective person reaches its objectives without much regard the means to implement, it is. The efficient continually seeks to optimize the use of its resources to achieve the same objectives more quickly and simply, it’s better! Undertake more with less! That’s the slogan of the efficient. The main lines of efficiency are: A clear definition of objectivesAn accurate assessment of available resourcesCareful design and ingenious processes with an ongoing requirement: using the least possible resourcesA control after the achievement of objectives in seeking to improve process optimizationEfficiency is certainly a way to work, but it is mostly an inner attitude with an overriding requirement: maximum results with minimum resources.

3. Independence

Be independent, before being a professional status, is a state of mind. Modern society and the mass media produce formatted and compliant citizens. Whoever wants to be independent must sometimes defy this social pressure and outside the box by creating its own path on which he has decided to walk. In the corporate context, this means, among other things, be the least dependent on debt and banks, customers and suppliers. It is a real struggle. This does not mean being alone in his corner and live in isolation. It is diversifying its sources of income, many customers have rather little, one more suppliers, pay cash and not out of time. This is to ensure that nothing and no one has the power to force you or carry you through your loss. In short, it is to be free!

4. Responsibility

The relentless pursuit of independence can lead us to take liberties with the law and regulations. Independence then moved in search of autonomy (being its own law against the law). This can lead us to spend time or time permanently across the line and cheat: evade taxes, social insurance, deceive customers, partners, suppliers. In short, take without giving. The course of the cheater is bumpy and often ends up in the ditch. Instead, I advocate a spirit of responsibility unscrupulous. Being right in his boots on the important points and flexible on the details of points.

The scrupulous mind creates inhibition and paralyzes action. The entrepreneur needs strength and determination to overcome all the difficulties of the course. It must reach to distinguish between legal obligations, contractual obligations consensual and small “obligations” of everyday life preserving maximum freedom of action and independence …. This reminds me of this anecdote: in a nice residential area, all owners made a point to frequently mow their lawn with the secret hope of having the most beautiful, best maintained, the greenest. A neighbor recalcitrant to this social formatting decided to mow the lawn diagonally. Result: the next day, the tires of his car were slashed! For my part, I will rather put style to the grass and sheep …

5. Serve

It has almost become a dirty word! … So it evokes words like serf serfdom servant, nothing particularly attractive short and glorious. The image that one is most often a corporate leader is not sexy: he earns up to 200 times the salary of its lowest paid employees, stock options and key premiums and when he turned, he leaves with a golden parachute! But now these few overpaid bosses are not representative of the vast majority of small entrepreneurs. They know one thing: making money is knowing how to make himself useful, even indispensable; Learn to be helpful is to serve! When I use a service to a client, I prepared myself sometimes, I often praise, but I never sell myself! My motto: to serve all but a slave to anything or anyone!

6. Creating value

Let’s take a concrete example: I’m thirsty and drinking a soda I wish that I did not at home. I have several opportunities to quench my thirst. I will be 200m from home at the village café and I will pay more than 4 francs, or I’ll drive to the village shop next door and I will pay 1.50 or I push further and join a small town and a shopping center where I will pay the same soda less than a franc. what will I do ? In my mind, there is a kind of balance: in a tray I put the price and the other the effort I need to provide to get this soda. Without hesitation, I go to the coffee shop and pays over 4 francs while I could have it for four times cheaper by moving me. I believe that for such a purchase involving so little, it does not require me to do more km and lose half an hour on the road. First observation: the price is not the sole criterion for my choice. I would even say that it is secondary. Second observation: In my choice, I prefer another factor: the least effort and economy of movement. I estimated that the value of the bistro soda consumed is greater than the soda bought four times cheaper at the mall nearby. The goal of the entrepreneur is precisely to analyze the value of products and services it sells. When he understands that it is this value, since it offers the customer, it can find ways to highlight the increase by adding other customer benefits. He values ​​his product or service and can thus justify its price. 

7. constantly innovate

Just like a living being perfectly adapted to its environment is vulnerable when it changes, the company adapted and efficient takes a considerable risk to its survival when the economic environment changes or is upset, when habits Customers are changing, when competitors are more incisive. The company does not live in a static economy. His adaptation is a conquest-won of course, but can be turned against her when their environment changes. It can then become inadequate in both its structure and its operation. Adapting to market is only temporary. It must evolve like any living being. This is an ongoing dynamic process: I call permanent innovation.

Money Management For Business Owners : What salary for the owner?

MANAGEMENT

What salary paid to the executive shareholder? Salary , bonuses and / or dividends ? And how is granted ? For the small business owner , it ‘s not easy to establish their remuneration. “It is very rare that an owner agrees the salary he deserves if he worked elsewhere , says Lynda Coache , FCPA and associated certification at Raymond Chabot Grant Thornton. A contractor wants to leave money in his company’s coffers to make it grow . ” To determine the income to pay Lynda Coache stake a simple question to the main interested : how much money do you need to live on each year? “When a company starts, the key is to meet its basic needs , she adds. All this will recover one day at the time of sale or transfer to the children. ” Only then will determine the future shape of income, it is composed of a salary, dividend and / or annual bonus .

EXPORTS

How profitable presence in exhibitions ? Visit a trade show, it is having to make choices , says Catherine Gervais , Executive Director of International Trade Quebec. “It’s so great that not always have time to do everything, nor see ,” she says . For that moving to such an event worthwhile , it offers a simple methodology: 1. Be prepared : know what customers and what competitors are out there and take the opportunity to indicate to customers that we will be there. 2. make a list of people to meet 3. Follow up with the people we met 4. Integrate new ideas to his business ” The important thing is to take a tour of strategy and set goals ,” she said. To top shipping success, she strongly encourage SMEs to delegate more than one representative, as their expertise in such events .

Choosing the right software?

The software provides easy management and planning proliferates on the internet. To select a tool with functions which SMEs need without leaving his shirt, Pierre Pouliot, partner at PGP Consulting, offers a way forward to its customers.

1. Conduct a strategic planning exercise to determine the future needs of the business.

2. Conduct an audit of business processes, to establish paper all the workings of the company.

3. Building a demo scenario, which will allow the software company to promote the benefits of the solution.

4. Assemble a list of potential suppliers. 5. Select suppliers on the basis of weighted criteria.

5. Attend a demonstration of suppliers, which will be made depending on the scenario.

6. Do not hesitate to ask again a demonstration before the final selection.

7. Negotiate the acquisition.

8. Implement the system, under the eye of a project manager.

About Author

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MegaIncomeStream is a global resource for Business Owners, Marketers, Bloggers, Investors, Personal Finance Experts, Entrepreneurs, Financial and Tax Pundits, available online. egaIncomeStream has attracted millions of visits since 2012 when it started publishing its resources online through their seasoned editorial team. The Megaincomestream is arguably a potential Pulitzer Prize-winning source of breaking news, videos, features, and information, as well as a highly engaged global community for updates and niche conversation. The platform has diverse visitors, ranging from, bloggers, webmasters, students and internet marketers to web designers, entrepreneur and search engine experts.