What type of bookkeeping is necessary to maintain a business,
like many other questions, depends on the type of business. A large
corporation will probably need a team of CPA’s on staff, and even a
lawyer who specializes in tax matters. A small business though, an LLC,
S Corp, partnership or sole proprietorship has simpler needs.

The small businessman may do much of the bookkeeping himself, or
have it done by his administrative assistant using one of the many
popular bookkeeping software programs out today, or even templates
available for spreadsheets like Excel, Quattro and Lotus. The small
businessman really just needs to keep track of income that comes into
the business, money that goes out of the business, what it goes out
for.

Saving receipts and making notes in the checkbook ledger are two of
the most important parts of small business bookkeeping. You can only
claim a legitimate business expense, and therefore claim a deduction if
you have a receipt to prove it if challenged during an audit. Save all
receipts, no matter how small, because they all add up.

One of the most important reasons to have good, accurate bookkeeping
is tax time. Many business pay taxes on a quarterly basis, Some pay
annually. Either way, accurate records are demanded by the IRS, and are
the only way to limit your tax liability legally and to withstand an
audit if it ever happens.

While most small business owners prefer to have someone else handle
their taxes, and many prefer to delegate bookkeeping chores to an
employee, is essential that the business owner understand the process
of bookkeeping and the tax system. If your education didn’t include
bookkeeping and taxes, check the local community college and see what
they offer, and get an education in order to help yourself.

Health insurance is a much talked about aspect of small business today. Employees want it, and need it. Small business owners need it as well, and the prices are high.

The first thing to keep in mind with health insurance is that all policies are not the same, and neither are all health insurance companies. Shop around to get the best rates of course, but don’t assume that the cheapest is naturally the best. When you find a policy that fits your budget, check out the company. Make sure that it has an adequate rating, preferably A plus. Check with your state insurance commission and assure yourself that the company pays claims when they are filed.

Next, decide if you will be best served with a traditional insurance plan, or a PPC or HMO. HMO stands for Health Maintenance Organization. PPO means Preferred Provider Organization. This is a network of healthcare providers who offer services to the members of participating health plans for a lower than usual cost.

Usually these doctors and hospitals are made known to you through a list provided by the PPO. You can see another doctor under a PPO, but it is more expensive to see someone not a part of the network. In that case only a percentage of the claim is paid. With an HMO you are restricted to physicians who are members of the HMO.

After checking out the available options, also consider a high deductible combined with a Medical Savings Account. With a high deductible, usually $5,000, you are considered self-insured for the first $5,000 in medical expenses, but have the insurance available for catastrophe or unusual circumstances. This leads to very low premiums. Combining that with a Medical Savings Account is a good combination for many people.

The Medical Savings Account is much like an IRA for retirement. With this program you put aside tax-free income into the savings account, that can only be used for medical expenses.
When checking these programs out, remember that you have many options.

Don’t be afraid to take the details of a plan one company is offering into another insurance office to let them compare and make a competing offer. Health care is important, and making the right decision now could help you in many ways, including financial, down the road.

For a more in-depth look at health insurance for the self employed visit: http://simplehealthcoverage.com

Investors in your business are a dream many entrepreneurs wish for. Added capital from investment allows business growth, invigorated marketing efforts, new employees, new facilities and expansion. What exactly are potential investors looking for in your business?

Investors are looking for a way to make a profit from their money. A way for their money to make more money. In looking at your business as a potential investment vehicles investors are looking for a way to increase your profit, so that they can have a fair share of it as a return on their investment.
In looking at your business they want to see stability. A strong management team with good employees and little or no turnover.

They want to know that key employees will stay for the long haul, and they want to know how future personnel problems will be handled when they arise. An employee handbook, also known as a policies and procedures manual is a great tool to showcase this positive aspect of your business. If your company doesn’t have one, then this is a great investment for you to make in your company’s future.

These potential cash angels also want to know how their investment capital would be used. What would you spend the money on, and how would it benefit the business and make it more profitable. For this it is wise to have a strategic business plan prepared, outlining future growth, and how it would benefit the company.

A part of the strategic business plan should be the marketing plan. The marketing plan is a roadmap to increased profits through marketing communications such as advertising, promotions and public relations, and the ways in which these efforts will increase sales of your company’s products or services.

The investors will also want to know about the big picture. Where does your company fit in the overall market? This can be locally, regionally or nationally, depending on how far our business reaches out to gather customers. This should include anticipated future trends in the marketplace, and your competition.

Emphasis in the plans your strengths, and ways in which you can capture sections of the market that the competition can’t, and that you are not yet reaching.

Investors interested in your business is a sincere complement to you as a business builder, but don’t expect them to understand the business as you do. Take the time and effort to show them, on paper, how you and your business can help them help themselves.