Managing Your Home Based Online Business – 3

Written by Roy Thomsitt

Continued from page 1

Management information system sounds very grand, but it need not be. It should just provide you with enough information to make timely and sound decisions, such as when to drop a particular program from your portfolio. I have dropped a number of affiliate programs inrepparttar past because their return, if any, did not justifyrepparttar 148301 amount of time and expense being dedicated to them. I was only able to do that because I had enough information to makerepparttar 148302 decision, sometimes very soon after joining a program.

2. Try to set aside a time each week or month to review your finances. Prepare a monthly profit and loss account coveringrepparttar 148303 whole business to seerepparttar 148304 overall position. Also, try to break that down in a way that helps you seerepparttar 148305 profit and loss of each product or online program which you may be marketing. Use that as a time, but notrepparttar 148306 only time, to consider decisions about increasing activity in, or dropping, a program or product, or to alter their marketing mix..

3. When setting up your expenditure records, consider which costs will be fixed each month, and which are variable. A fixed cost is an overhead such as power for your home office, or your internet and computer expenses. A variable cost is more under your control inrepparttar 148307 short term, for example advertising costs.

4. If your business comprises more than one online program or product, (for illustration A and B) try to allocate as much expenditure as possible to either A or B. This becomes part of your management information. You can use it to see if A and B are profitable. If you cannot allocaterepparttar 148308 expenditure precisely between A and B, use your best guess. If you cannot do so, then consider ifrepparttar 148309 expenditure is really a fixed cost.

5. Ensure your income records keep track of where income has come from. This will be used withrepparttar 148310 expenditure records in 4. to track profitability of different products.

6. If you are dividing your time between A and B, try to jot down each dayrepparttar 148311 time spent on each in particular. This information may one day help you to make an important decision. Time is a limiting factor. You need to make use of it. If your time comes under pressure, there will come a day when you will need to decide how your time is most profitably spent.

You may find some surprising results. I once had an advertising sales business, and my partner and I sold space in 7 specialist magazines. One of them only brought in a few hundred pounds each month, and my partner wondered if we should drop it. When I checked back a year forrepparttar 148312 times spent on that and other magazines,repparttar 148313 one she wanted to drop actually brought inrepparttar 148314 most revenue per hour of all of them. So we keptrepparttar 148315 magazine going, and it later expanded. Without those time records, we would have made a bad decision without ever knowing.

7. Fromrepparttar 148316 start of your business activity, try to formulate a plan and a budget. This will help structure your financial management. Do not worry if your first forecasts are wildly out. As you gain knowledge of your business and its market environment, your forecasts may improve. The important thing is to keep inrepparttar 148317 management way of thinking. That will help you keep your finger onrepparttar 148318 financial pulse. Your business will be more profitable inrepparttar 148319 long run.

8. In conjunction with 7. prepare a cash flow plan and keep it updated. This could be a saviour for your business, and avert unnecessary pressure on yourself later.

The above has only really been an introduction torepparttar 148320 subject of financial management of your home business. You will be doing yourself a great favour if you try to learn bit more each month aboutrepparttar 148321 different elements mentioned.

Roy Thomsitt is the owner of the home online business website,

Build Credibilty With Expertise

Written by Lawrence Groves

Continued from page 1

6. Properly Identify The Funding And Benefit Arrangements On Line 9 Of The Form 5500 Indicate allrepparttar proper Funding and Benefit Arrangements on Form 5500, Lines 9a and 9b. The “Funding Arrangement” isrepparttar 148300 method used forrepparttar 148301 receipt, holding, investment, and transmittal of plan assets prior torepparttar 148302 timerepparttar 148303 plan actually provides benefits. The “Benefit Arrangement” isrepparttar 148304 method by whichrepparttar 148305 plan provides benefits to participants. The responses on Lines 9a and 9b are cross-referenced against information on Schedules H, I, and/or A as appropriate. Be careful to attachrepparttar 148306 appropriate financial or insurance schedule (H, I, A) that corresponds torepparttar 148307 Benefit and Funding Arrangements you indicate.

7. File All The Required Schedules And Attachments With Your Form 5500 Make sure you are filing allrepparttar 148308 required schedules and attachments with your Form 5500. If you check a box indicating that a schedule is attached,repparttar 148309 schedule must be submitted with your Form 5500.

8. Schedule R And Distributions You must prepare Schedule R only if there are any distributions or rollovers fromrepparttar 148310 plan. You must enter bothrepparttar 148311 EIN ofrepparttar 148312 distribution payer andrepparttar 148313 EIN ofrepparttar 148314 pension plan. Part 3 is only for money purchase plans that have made single sum distributions.

9. File The Appropriate Financial Information Schedule (H or I) With Your Form 5500. Make sure you filerepparttar 148315 proper Financial Information Schedule with your Form 5500. The Schedule H is for “large plan” filers (generally plans with 100 or more participants atrepparttar 148316 beginning ofrepparttar 148317 plan year). The Schedule I is for “small plan” filers (generally plans with fewer than 100 participants atrepparttar 148318 beginning ofrepparttar 148319 plan year).

10. Completerepparttar 148320 Participant Benefit Information onrepparttar 148321 Schedule SSA Make sure that you list all ofrepparttar 148322 terminated participants with their vested balances fromrepparttar 148323 prior year that still have not been paid. Starting withrepparttar 148324 2004 filing year, sponsors are required to list participants, previously outstanding, who have been subsequently paid.

When your client calls, anxious of a possible Dept of Labor fine, you can build long term credibility by taking charge of seeingrepparttar 148325 correction is made byrepparttar 148326 preparer. Better still, review or have an expert review,repparttar 148327 Form 5500 beforerepparttar 148328 client sendsrepparttar 148329 forms intorepparttar 148330 Dept of Labor and save your client receiving any letter at all. Calendar year plans Form 5500 EZ and Form 5500 with related schedules are due by July 31, each year.

About the Author: Lawrence Groves is the Small Business Retirement Services Director for The Retirement Group. He has helped thousands of small businesses set up retirement plans. Visit the site for more information

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