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 in past because their return, if any, did not justify amount of time and expense being dedicated to them. I was only able to do that because I had enough information to make 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 covering whole business to see overall position. Also, try to break that down in a way that helps you see profit and loss of each product or online program which you may be marketing. Use that as a time, but not 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 in 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 allocate expenditure precisely between A and B, use your best guess. If you cannot do so, then consider if expenditure is really a fixed cost.

5. Ensure your income records keep track of where income has come from. This will be used with 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 day 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 for times spent on that and other magazines, one she wanted to drop actually brought in most revenue per hour of all of them. So we kept magazine going, and it later expanded. Without those time records, we would have made a bad decision without ever knowing.

7. From 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 in management way of thinking. That will help you keep your finger on financial pulse. Your business will be more profitable in 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 to 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 about different elements mentioned.

6. Properly Identify The Funding And Benefit Arrangements On Line 9 Of The Form 5500 Indicate all proper Funding and Benefit Arrangements on Form 5500, Lines 9a and 9b. The “Funding Arrangement” is method used for receipt, holding, investment, and transmittal of plan assets prior to time plan actually provides benefits. The “Benefit Arrangement” is method by which 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 attach appropriate financial or insurance schedule (H, I, A) that corresponds to Benefit and Funding Arrangements you indicate.

7. File All The Required Schedules And Attachments With Your Form 5500 Make sure you are filing all required schedules and attachments with your Form 5500. If you check a box indicating that a schedule is attached, 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 from plan. You must enter both EIN of distribution payer and EIN of 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 file proper Financial Information Schedule with your Form 5500. The Schedule H is for “large plan” filers (generally plans with 100 or more participants at beginning of plan year). The Schedule I is for “small plan” filers (generally plans with fewer than 100 participants at beginning of plan year).

10. Complete Participant Benefit Information on Schedule SSA Make sure that you list all of terminated participants with their vested balances from prior year that still have not been paid. Starting with 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 seeing correction is made by preparer. Better still, review or have an expert review, Form 5500 before client sends forms into 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.