Keeping up with your expenses and income as a small business owner is critical to determining if your are profitable and accurately complete your taxes. For most sole proprietors starting out, accountants may not be an affordable option to start. 

Here are some accounting tips to follow until your business grows the income needed to hire an accountant: 

• Separate business and personal expenses - Get a separate business bank account to track all of your financial transactions. A business credit card is handy too. 
• Create a simple spreadsheet or financial journal to record all of your transactions - Start with two primary categories; Expenses & Income. Within each category you can create additional descriptions such as; Insurance, Advertising, Utilities, etc. 
• Keep all transaction records - Receipts are the most important. You will use them to figure taxes and as to provide supporting documentation in the event the IRS comes knocking at your door. 
• Dedicate time each week to work on your financial transactions. Staying up-to-date is the best way to reduce stress during tax season. 
• Follow-up on invoices - Make sure you have a way to track when an invoice is sent, when payment is due and when the payment is received. Also, review invoices periodically to ensure they are getting paid. 
• Control your business spending - Resist the urge to spend the money you just received from a customer or client. Be frugal, making sure that any expenditures are needed, and that you have plenty of funds to carry you through the tough times. 

​There are several free accounting packages available that can help you track your financial transactions. Wave Accounting is one of our favorites as it is simple, comes preset with transaction categories, and generates excellent reports to help you complete your taxes. You can also receive credit card payments from customers and link your business bank account for complete tracking. 

A tornado strikes your business or home where your home office is located. Do you have a plan in place that will allow you to continue your business operations within minutes or hours? 

If the answer is no, then keep reading. 

Business Continuity Planning
It is just what the name implies, a plan that will allow you to continue critical business processes and services in the event of an emergency.

Business continuity planning (BCP) is not just for big business. For small businesses, having a BCP in place is even more critical. Consider that most small businesses can not afford to lose a week or even a few days of business to remain profitable. A recent survey found that less than 30% of small businesses have a BCP, and of that 30%, less than half were effective plans. 

• A BCP must incorporate more than just the business itself. Suppliers, vendors, employees, and even customers that may be impacted by a natural disaster can negatively impact a small business. Some disasters that impact your business may occur hundreds or thousands of miles away.  
• Insurance planning is critical to small business BCP. Most businesses have liability and property insurance. These coverages do not help your business recover quickly, or at all as they may only cover building damage. Identify what you need to do while your property is being repaired. 
• The foundation of any BCP is a communications plan that includes customers, suppliers, employees, and others. Determine how you will communicate temporary business disruptions, identify alternatives to keep your business flowing, and determine how you will finance temporary operations during the recovery process. 
• Create a BCP for each critical process. Your business may only be impacted in one area, or multiple areas of operation. Having a clear plan for each critical function will help you prepare in advance, prepare your employees, and implement an effective plan when required. 
• BCP must include those smaller emergencies as well. Create plans for catastrophic business failures, loss of critical equipment, or loss of an employee. 

Through proper BCP development, you can reduce the negative impacts of emergencies on your customers and your business. It is time to plan now for a disruption of operations that will more than likely occur during the life-time of your business. 

​If you don't have a plan, or are not sure where to start, get help. Your business will thank you.

As a small business owner you probably have a good idea of what your customers need and want, but it is important that you continue to expand your understanding, and look for opportunities to better serve your customers or clients and identify expansion opportunities. 

Here are a few ideas from big businesses that you can use to increase your market share: 

• Customer surveys - You can use online survey instruments or better, make calls to some of your customers. Get their feedback on your goods and services. Their insights can help you improve existing processes and/or provide additional goods and services they may want or need. 
• Evaluate your sales - Periodically, evaluate what your best sellers are, and then see where there may be room for improvement or expansion. Maybe you sell ice cream but cookie sales are increasing. Time to think about a cookie sundae offering? 
• Review negative feedback - Put aside your emotions and try to understand the customers frustrations. What worked? What didn't work? How can you avoid this problem in the future? And where necessary....apologize. 
• Gather intelligence information - No you don't have to be a spy, well sort of. Look for your competitors. What services or products do they offer? How competitive is your pricing? How do you exceed what your competitor offers? 
• Directed marketing - Make the most of your advertising dollars. Identify your primary customer market. Who are they from the income level, where they live, where they work? Use this information to identify new potential customers and focus your marketing efforts. 
• Word of mouth advertising - Still the best form of advertising is when someone recommends you to another person, often a friend or co-worker. Encourage word-of-mouth by offering discounts or chasing leads that customers may provide you. 
• Branding Recognition - Brand you business using the same color schemes on business cards, flyers, web pages; use the same motto, and logo. Customers should be able to identify your business with a quick glance. When done properly, brand recognition is like seeing an old friend:-)

Even if you serve a small market, a niche, taking some time to better understand your customers, their needs and wants can open doors of opportunities for your business.