Keeping good records yourself, no matter how unpleasant it may seem, will minimize the costs of paying an accountant and allow you more control of your financial information and operations. Maintaining good records can also help you avoid headaches at tax time by keeping track of your receipts and other records throughout the year. This can help you remember the various transactions you made during the year so you can properly document and maximize your tax deductions.
Normally, tax records should be kept for three years, but some documents – records relating to a home purchase or sale, stock transactions, IRA and business or rental property – should be kept longer.
Good record keeping not only enables the IRS to evaluate your business activity through original and supporting documents, but it also gives you the information you need to properly manage and grow your business.
You can keep track of your business transactions by writing them down, usually in books such as journals or ledgers or by typing them into a computer software program. It’s best to choose a system that’s simple, yet can be changed to meet your needs in the future. An accounting system should show your income and expenses and can be easily understood, especially by you. If you have more than one business, it’s best to keep completely separate books for each type of business activity.
The two basic types of bookkeeping methods are single entry and double-entry systems. Whether you choose to keep a written ledger or use computer software, record only the information that needs to be documented.
Invoice factoring is the basic practice of selling invoices to financial factoring companies for the purpose of receiving money right away. Smaller companies often fall into the financial trap of not having available resources and therefore sell their invoices to financial agencies in order to gain working capital. This practice does not require the business to swallow more debt and in fact operates in an opposite manner. Small businesses that don’t utilize the financial tool of accounts receivable factoring acquire more debt by waiting for the accounts receivables to be paid.
Invoice factoring is typically used as a measure to avoid falling further into debt. Without this effective financial management tool many businesses have to adopt more loans or alternatively, put up more collateral for existing loans. Invoice factoring is available at a minimal fee, which makes it an attractive substitute to assuming more debt. In fact, accounts receivable factoring fees are usually set up by way of discount and these rates differ from individual company to company. The great advantage to this type of liquidation is that there are no interest fees to pay and the result is most often better profit margins.
There are many financial companies that offer invoice factoring services. The individual agencies will set up a company with the right set of accounts receivable factoring parameters. After the professionals from the invoice factoring agency assess the individual situation, they will set up the receivables to be factored and proceed accordingly.
Financial agencies that offer accounts receivable factoring are located worldwide and support every industry under the sun. Even truck drivers can sell their invoices to an invoice factoring financial service to free up capital fast. One of the most attractive aspects to an accounts receivable factoring agency is that they customize the service to each business’s individual requirements.
With the prevalence of social networking media, one must still take necessary precautions and keep in mind that not all websites are good for your business. You really need to take a look at the sites and determine who and where your audience is before creating your own business page. Here are the various types of websites out there to help you figure out which ones you really need:
· Niche Forums – these have pretty much any kind of company that you are involved with as members discussing about any topic you care about. Here, you can find people passionately talking about your particular market. However, it is important to know that they will likely be very vocal about negative feedback which of course can help you improve your products or services.
· Broad Based Discussion Sites – Examples of these are discussion forums that have been around for quite some time now. Do a Google search and see if you can find forums on your topic or go to Yahoo Groups and Google Groups to see who are talking about you.
· Traditional Social Networking – These include MySpace, Facebook, Twitter, and more, which are all good for traditional marketing.
· Social Media Submission – The most popular among all is Digg but there are social media sites for almost anything out there. At the very least, you can start by listening to what people are saying then you can respond and try to become a valuable resource on a topic.