Managing Your Home Based Online Business – 3

Written by Roy Thomsitt

When you have your own home based business, whether it is online or offline, financial management is one ofrepparttar key "departments". You really do need to keep on top of your finances if you want your own little business to have long term success, and you can do that by being a manager rather than by adoptingrepparttar 148301 role of a low rank employee.

Why do you need to managerepparttar 148302 home business finances?

It is so easy to allow things to drift when you're working at home, and concentrate merely on totting uprepparttar 148303 sales revenue. Remember, this is what may happen if you do not positively manage your business finances:

1. You will experience cash flow problems. Allowing cash to flow in and out at its own will almost ensures a failed business. If you are blessed with masses of sales income inrepparttar 148304 early days, then you will have time to put things right. If you don’t, then you may run out of time. Cash flow will bring you down. One ofrepparttar 148305 most common causes of business failure is cash flow, and many of those businesses could have flourished with better financial management.

2. It is inevitable your business will be less profitable than it could otherwise be. Financial alertness, which financial management will bring, ensures you are making better and more timely decisions. That results in more profits and better cash flow, and ultimatelyrepparttar 148306 survival of your home business.

3. If you are not watching your finances closely, it is easy for you to continue with unprofitable activities, programs and products. For example, you may be an affiliate for 3 products. The one bringing yourepparttar 148307 highest commission each month may be unprofitable without you even knowing it, if you are not trackingrepparttar 148308 spend on advertising that product.

4. Your business may not grow as it otherwise could. If you do not manage your finances, how will you ensure that part ofrepparttar 148309 profit is put into growingrepparttar 148310 business, for example with more advertising or other forms of marketing. Also, you need to budget for increasing your knowledge.

How do you managerepparttar 148311 home business finances?

If you own a very small online business your financial management will not take up much time. The best time to set things up to keeprepparttar 148312 right sort of records is atrepparttar 148313 very beginning, when you first set uprepparttar 148314 business.

This is a massive subject if you want to go into fine details, it would require a large manual. I will cover here just a few points. Bear these points in mind inrepparttar 148315 context of your own home business and circumstances, and you should get your business onto a sound footing, from which you can develop more sophisticated systems if you need them.

It is very likely that your records will only need to be very simple at first, but it makes sense to get some sort of information structure in place right atrepparttar 148316 start, then as things expand for you, there will no need to play catch up. Your home business will flourish if you have your finger onrepparttar 148317 pulse of its finances at all times. Here are a few suggestions:

1. Just as a CEO calls for regular finance reports in a company, you, as CEO of your own online business, need to ensure that your finance director, also you, provides allrepparttar 148318 necessary information to satisfy your needs for statutory returns (eg your country's tax department) and for monitoringrepparttar 148319 different elements of your business. In effect, you have 2 separate but integrated sets of records. The first is forrepparttar 148320 true financial accounts, which are for your statutory needs. The other is your set of management accounts. In other words, you also want a management information system that helps you make decisions that will improverepparttar 148321 profitability ofrepparttar 148322 business.

Build Credibilty With Expertise

Written by Lawrence Groves

You have permission to publish this article electronically or in print, free of charge, as long asrepparttar bylines are included. A courtesy copy of your publication would be appreciated.

Build Credibility with Expertise Lawrence Groves-July 2005

As an Investment Representative you’ve worked hard to build trust with your pension clients. Now, you can solidify that long term relationship with your expertise on one ofrepparttar 148300 greatest fears of small business retirement plan sponsors.

Next to an audit, nothing frightens retirement plan sponsors more than a notification letter fromrepparttar 148301 Dept of Labor regarding inadequacies in their responses onrepparttar 148302 Form 5500 or 5500-EZ filing. Inadequacies that, if not corrected within 30 days ofrepparttar 148303 date ofrepparttar 148304 letter, would subjectrepparttar 148305 plan sponsor to substantial fines and penalties, not only fromrepparttar 148306 Dept of Labor but fromrepparttar 148307 IRS as well.

Following is a listing ofrepparttar 148308 most common filing errors that will generate a letter fromrepparttar 148309 Dept of Labor.

1. The Form 5500 Must Be Properly Signed And Dated Make sure that you haverepparttar 148310 proper signatures byrepparttar 148311 Employer and Plan Administrator and dates onrepparttar 148312 Form 5500, Form 5500-EZ, and any attached schedules that require a signature (Schedules B: Actuary; P: Trustee; and Schedule SSA; Plan Administrator).

2. The Form 5550 Must Have The Proper EIN And Plan Number (PN) It is critical thatrepparttar 148313 Employer Identification Number (EIN) used to identifyrepparttar 148314 “plan sponsor” berepparttar 148315 same year to year when completing line 2b ofrepparttar 148316 Form 5500 or Form 5500EZ.

3. The Form 5500 Filing May Not Be For A Period Greater Than 12 Months Be certainrepparttar 148317 time period entered in Part I ofrepparttar 148318 Form 5500 is not greater than twelve months. Ifrepparttar 148319 plan is not reporting on a calendar year basis, then inputrepparttar 148320 twelve-month fiscal year period inrepparttar 148321 spaces provided.

4. Use A Proper Business Code When Completing Line 2d Of The Form 5500 On Form 5500, Line 2d, be certain to enter a valid business code that best describesrepparttar 148322 nature ofrepparttar 148323 plan sponsor's business. The only business codes that are valid for use in answering Line 2d are listed inrepparttar 148324 Form 5500 filing instructions section marked “Codes for Principal Business Activity”. 5 Use The Correct Plan Characteristics Codes On Line 8 Of The Form 5500. On Form 5500, Line 8, you must check box A to indicate ifrepparttar 148325 plan is providing pension benefits. You must enterrepparttar 148326 Plan Characteristics Codes inrepparttar 148327 space provided beneath box A. These codes describerepparttar 148328 type of pension benefits provided and other features ofrepparttar 148329 plan. A list and description ofrepparttar 148330 Plan Characteristics Codes is in Section 6 ofrepparttar 148331 Instructions for Form 5500.

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