This article from the New York Times: “I’m Not a Number’s Person” sheds light on two of the biggest pitfalls that small business owners face: 1) Having no accounting skills 2) not hiring a competent accountant to help. Small business owners are often charged with handling all tasks related to the business, including bookkeeping. If you aren’t a numbers person. Hire a certified and educated numbers person to help you.
Here are a few simple accounting tips that may help keep small business owners out of bankruptcy.
- Keep personal accounts separate from business accounts
- Track your inventory
- Don’t confuse profits with cashflow – Read “I’m Not a Numbers Person“ for more perspective on this pitfall
- The person who handles the cash should NOT control the books
- Reconcile your checkbook every month – every business owner needs to review their monthly cash receipts and cash disbursements and compare with their budget to check for deviations.
- Hire a competent accountant with the credentials and the education to back up their skills – or you will end up looking for a competent small business bankruptcy lawyer.
If you or your small business are dealing with unmanageable debt or other problems that threaten its continuation, there are a variety of options, including bankruptcy, that might be a viable solution to getting rid of debt and saving your business. Contact us at (406) 752-5616 to discuss your options.